Click Here for Index

|  |
|--|
|  |
|  |

| **Delaware**                                                   |   | **Not Applicable**                   |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |

| **C/O Foster Wheeler Inc.**                |   |           |
|--------------------------------------------|--------|----------------|
| **Perryville Corporate Park, Clinton, NJ** |   | **08809-4000** |
| (Address of principal executive offices)   |   | (Zip Code)     |

|  |
|--|
|  |
|  |

----

| Part I |  Financial Information    Item    1 -Financial    Statements (Unaudited):     Balance    Sheet at March 26, 2004 and December 26, 2003       Statement    of Operations and Changes in Preferred Securities Holders’ Deficit for the    Three Months Ended March 26, 2004 and March 28, 2003     Statement    of Cash Flows for the Three Months Ended March 26, 2004 and March 28, 2003     Notes    to Financial Statements    Item    2 -Management’s    Discussion and Analysis of Financial Condition and Results of Operations    Item    3 –Quantitative    and Qualitative Disclosures about Market Risk    Item    4 –Controls    and Procedures   Part    II Other    Information    Item    1 -Legal    Proceedings    Item    6 -Exhibits    and Reports on Form 8-K  Signatures  **Back to Index** **PART  I   FINANCIAL INFORMATION****ITEM  1 - FINANCIAL STATEMENTS** **FW PREFERRED CAPITAL  TRUST I****BALANCE SHEET****(in thousands of dollars)****(Unaudited)**   **March 26, 2004** **December 26, 2003**     **ASSETS**       **Non-Current Assets:**       Investment in subordinated deferrable    interest debentures of Foster Wheeler LLC, net of valuation allowance of    $138,600 and $154,000 as of March 26, 2004 and December 26, 2003,    respectively $36,400 $21,000  Accrued interest on subordinated    deferrable interest debentures, net of valuation allowance of $42,813 and    $38,021 as of March 26, 2004 and December 26, 2003, respectively  —  —     **TOTAL ASSETS** $36,400 $21,000      **LIABILITIES    AND PREFERRED SECURITIES HOLDERS’ DEFICIT**       **Long-term liabilities:**       Deferred accrued mandatorily    redeemable preferred security distributions $42,813 $38,021  Mandatorily redeemable preferred    securities  175,000  175,000      **TOTAL LIABILITIES**  217,813  213,021      **Preferred securities holders’ deficit**  (181,413) (192,021)    **TOTAL LIABILITIES AND    PREFERRED SECURITIES HOLDERS’ DEFICIT** $36,400 $21,000       See notes to financial statements. 3**Back to Index** **FW  PREFERRED CAPITAL TRUST I****STATEMENT  OF OPERATIONS AND CHANGES IN PREFERRED SECURITIES HOLDERS’ DEFICIT****(in  thousands of dollars)****(Unaudited)**   **Three    Months Ended**      **March 26,    2004** **March 28,    2003**     **Other    income:**       Decrease    in valuation allowance on investment in subordinated deferrable interest    debentures and related interest income receivable $15,400 $7,350     Interest    income on subordinated deferrable interest debentures  —  —     Total    other income  15,400  7,350     **Expense:**       Preferred    security distributions expense  4,792  4,372         **Net    earnings**  10,608  2,978     Preferred securities    holders’ deficit at beginning of period  (192,021) (185,441)    **Preferred    securities holders’ deficit at end of period** $(181,413)$(182,463)     See  notes to financial statements. 4**Back to Index** **FW  PREFERRED CAPITAL TRUST I****STATEMENT  OF CASH FLOWS****(in  thousands of dollars)****(Unaudited)**   **Three Months Ended**      **March 26, 2004** **March 28, 2003**     Cash flows from operating    activities $— $— Cash flows from investing    activities  —  — Cash flows from financing    activities  —  —     Change in cash and cash    equivalents  —  — Cash and cash equivalent    at beginning of period  —  —     Cash and cash equivalent    at end of period $— $—      See  notes to financial statements. 5**Back to Index** **FW PREFERRED CAPITAL TRUST I****NOTES TO FINANCIAL STATEMENTS****(in thousands of dollars)****(Unaudited)** **1.****Nature of Operations and Relationship to Foster Wheeler Ltd. and    Foster Wheeler LLC** FW Preferred  Capital Trust I (the “Capital Trust”) is a statutory business trust created  under Delaware law pursuant to a declaration of trust, dated as of May 8, 1998,  as amended and restated on January 13, 1999, executed by Foster Wheeler  Corporation and a certificate of trust filed with the Delaware Secretary of  State on May 8, 1998.  In 2001, Foster  Wheeler Corporation underwent reorganization and was merged into Foster Wheeler  LLC. The Capital Trust is a 100% owned finance subsidiary of Foster Wheeler  LLC, who is a 100% indirectly-owned subsidiary of Foster Wheeler Ltd. The  Capital Trust was established for the purpose of issuing and selling preferred  securities and then using the proceeds from the sale of the preferred  securities to acquire junior subordinated debentures of Foster Wheeler  Corporation, the predecessor in interest to Foster Wheeler LLC. On January 13,  1999, the Capital Trust consummated a $175,000 public offering of 7,000,000  preferred trust securities (the “Trust Securities”). The Trust Securities  accrue cumulative distributions at an annual rate of 9%. The distributions are  payable quarterly in arrears on April 15, July 15, October 15 and January 15 of  each year.  The maturity date of the  Trust Securities is January 15, 2029; however, the Capital Trust can redeem the  Trust Securities on or after January 15, 2004.   Foster Wheeler Ltd. and Foster Wheeler LLC fully and unconditionally  guarantee the Trust Securities. The Capital  Trust invested the proceeds from the sale of the Trust Securities in an equal  principal amount of 9.0% junior subordinated deferrable interest debentures of  Foster Wheeler Corporation due January 15, 2029 (the “Debentures”). The Capital  Trust distributes the quarterly cash payments it receives from Foster Wheeler  LLC as interest on the Debentures to the Trust Securities security holders.  Foster Wheeler LLC may defer interest on the Debentures for up to 20  consecutive quarterly periods.  If this  occurs, the Capital Trust will also defer distribution payments on the Trust  Securities. In accordance with this provision, the Capital Trust deferred all  quarterly distributions beginning with the distribution due on January 15,  2002.  The Capital  Trust has no assets other than the Debentures.   These Debentures have essentially the same terms as the Trust Securities.  Therefore, the Capital Trust can only make  payments on the Trust Securities if Foster Wheeler LLC first makes payments on  the Debentures.  Foster Wheeler LLC can  only make payments on the Debentures if its subsidiaries provide the funds for  such payments. The Capital  Trust will redeem all of the outstanding Trust Securities when the Debentures  are paid at maturity on January 15, 2029.   In addition, if Foster Wheeler LLC redeems any of the Debentures before  their maturity, the Capital Trust will use the cash it receives on the  redemption of Debentures to redeem, on a pro rata basis, the Trust Securities  having a total liquidation amount equal to the total principal amount of the  Debentures redeemed.  Foster Wheeler LLC  can redeem the Debentures before their maturity at 100% of their principal  amount plus accrued and unpaid interest to the date of redemption anytime after  January 15, 2004. Prior to  December 27, 2003, the Capital Trust was consolidated in the financial  statements of Foster Wheeler Ltd. and the Trust Securities were presented as  mandatorily redeemable preferred securities of subsidiary trust holding solely  junior subordinated deferrable interest debentures in its balance sheet.  The accumulated undistributed quarterly  distributions were presented on the balance sheet of Foster Wheeler Ltd. as  deferred accrued mandatorily redeemable preferred security distributions of  subsidiary trust.  The distributions  expense on the Trust Securities was presented as mandatorily 6**Back to Index** redeemable preferred security  distributions of subsidiary trust on the statement of operations and  comprehensive loss of Foster Wheeler Ltd. Effective  December 27, 2003, Foster Wheeler Ltd. adopted Financial Accounting Standards  Board (“FASB”) Financial Interpretation (“FIN”) 46, “Consolidation of Variable  Interest Entities,” for variable interest entities formed prior to February 1,  2003.  In accordance with the provisions  of FIN 46, Foster Wheeler Ltd. determined that (i) the Capital Trust is a  variable interest entity and (ii) Foster Wheeler Ltd. is not the primary  beneficiary.  Accordingly, Foster  Wheeler Ltd. de-consolidated the Capital Trust as of December 27, 2003. Foster  Wheeler Ltd.’s balance sheet now reflects its obligations to the Capital Trust  as subordinated deferrable interest debentures and deferred accrued interest on  subordinated deferrable interest debentures. The interest expense on the  Debentures is presented on the statement of operations and comprehensive loss  of Foster Wheeler Ltd. as interestexpense on subordinated deferrable interest  debentures. **2.****Liquidity and Going Concern** The  accompanying financial statements of the Capital Trust are prepared on a going  concern basis, which contemplates the realization of assets and the  satisfaction of liabilities in the normal course of business.  The Capital Trust’s ability to continue as a  going concern is dependent on Foster Wheeler Ltd.’s ability to continue as a  going concern as the Capital Trust’s only asset is the Debentures.  Foster Wheeler Ltd. may not, however, be  able to continue as a going concern. The realization of assets and the  satisfaction of liabilities in the normal course of business are dependent on,  among other things, Foster Wheeler Ltd.’s ability to return to profitability,  to continue to generate cash flows from operations, asset sales and collections  of receivables to fund its obligations including those resulting from the  subordinated deferrable interest debentures, asbestos related liabilities, as well as maintaining credit facilities and bonding capacity adequate to conduct its  business.  Foster Wheeler Ltd. has  incurred losses for the three months ended March 26, 2004 and in each of the  years in the three-year period ended December 26, 2003 and has a shareholders’  deficit of $880,700 as of March 26, 2004. Foster Wheeler Ltd. has substantial  debt obligations including its Senior Credit Facility and during 2002, it was  unable to comply with certain debt covenants under the previous revolving  credit agreement. As described in more detail below, Foster Wheeler Ltd.  received waivers of covenant violations and ultimately negotiated new credit  facilities in August 2002. In November 2002, the new Senior Credit Facility was  amended to provide covenant relief of up to $180,000 of gross pretax charges  recorded in the third quarter of 2002 and also to provide that up to an  additional $63,000 in pretax charges related to specific contingencies could be  excluded from the covenantcalculation through December 2003, if incurred. In  March 2003, the Senior Credit Facility was again amended to provide further  covenant relief by modifying certain definitions of financial measures utilized  in the calculation of the financial covenants and the minimum earnings before  interest expense, taxes, depreciation and amortization (“EBITDA”) and senior  debt ratio. The credit facilities were also amended in July 2003 to provide  waivers of the applicable sections of the Senior Credit Facility to permit the  exchange offers described elsewhere in this report, other internal  restructuring transactions as well as transfers, cancellations and setoffs of  certain intercompany obligations.  There  is no assurance that Foster Wheeler Ltd. will be able to comply with the terms  of the Senior Credit Facility, as amended, and other debt agreements during  2004.  Foster Wheeler Ltd.’s current  forecast indicates that it will be in compliance with its financial covenantsthroughout 2004.  However, there can be  no assurance that the actual financial results will match the forecasts or that  Foster Wheeler Ltd. will not violate the covenants. Foster Wheeler  Ltd.’s U.S. operations, which include the corporate functions, are cash flow  negative and are expected to continue to generate negative cash flow due to a  number of factors including costs related to Foster Wheeler Ltd.’s  indebtedness, obligations to fund U.S. pension plans, and other expenses  related to corporate overhead.  Foster Wheeler  Ltd.’s management closely monitors liquidity and updates its U.S. liquidity  forecasts weekly. These forecasts include, among other analyses, cash flow  forecasts, which include cash 7**Back to Index** on hand, cash flows from  operations, cash repatriations and loans from non-U.S. subsidiaries, asset  sales, collections of receivables and claims recoveries, and working capital  needs and unused credit line availability.   Foster Wheeler Ltd.’s current cash flow forecasts indicate that  sufficient cash will be available to fund Foster Wheeler Ltd.’s U.S. and  foreign working capital needs throughout 2004.   However, there can be no assurance that sufficient cash will be  available in 2004.   As of March  26, 2004, Foster Wheeler Ltd. had aggregate indebtedness of approximately  $1,000,000.  The corporate debt must be  funded primarily with distributions from Foster Wheeler Ltd.’s foreign  subsidiaries, including the subordinated deferrable interest debentures.  As of March 26, 2004, Foster Wheeler Ltd.  had cash and cash equivalents, short-term investments, and restricted cash  totaling $453,800 compared to $430,200 as of December 26, 2003.  Of the $453,800 total at March 26, 2004,  approximately $355,800 was held by Foster Wheeler Ltd.’s foreign subsidiaries.  Foster Wheeler Ltd. is sometimes required to cash collateralize bonding or  certain bank facilities. The amount of Foster Wheeler Ltd.’s restricted cash at  March 26, 2004 was $73,000, of which $61,200 related to the non-U.S.  operations.  Foster Wheeler  Ltd. requires cash distributions from its non-U.S. subsidiaries in the normal  course of its operations to meet its U.S. operations’ minimum working capital  needs. Foster Wheeler Ltd.’s current 2004 forecast assumes cash repatriation  from its non-U.S. subsidiaries from royalties, management fees, intercompany  loans, debt service on intercompany loans, and dividends of approximately  $61,000.  In 2003, Foster Wheeler Ltd.  repatriated approximately $100,000 from its non-U.S. subsidiaries.  There can be  no assurance that the forecasted foreign cash repatriation will occur as there  are significant legal and contractual restrictions on Foster Wheeler Ltd.’s  ability to repatriate funds from its non-U.S. subsidiaries. These subsidiaries  need to keep certain amounts available for working capital purposes, to pay  known liabilities, and for other general corporate purposes. Such amounts  exceed, and are not directly comparable to, the foreign component of restricted  cash previously noted.  In addition,  certain of Foster Wheeler Ltd.’s non-U.S. subsidiaries are parties to loan and  other agreements with covenants, and are subject to statutory minimum  capitalization requirements in their jurisdictions of organization that  restrict the amount of funds that such subsidiaries may distribute. Distributions  in excess of these specified amounts would violate the terms of the agreements  or applicable law whichcould result in civil or criminal penalties. The  repatriation of funds may also subject those funds to taxation. As a result of  these factors, Foster Wheeler Ltd. may not be able to repatriate and utilize  funds held by its non-U.S. subsidiaries or future earnings of those  subsidiaries in sufficient amounts to fund its U.S. working capital  requirements, to repay debt, or to satisfy other obligations of its U.S.  operations, which could limit both Foster Wheeler Ltd.’s and the Capital  Trust’s ability to continue as a going concern.  Commercial  operations under a domestic contract retained by Foster Wheeler Ltd. in the  Foster Wheeler Environmental Corporation (“Environmental”) asset sale commenced  in January 2004.  The plant processes  low-level nuclear waste for the U.S. Department of Energy (“DOE”). Foster  Wheeler Ltd. funded the plant’s construction costs and operates the  facility.  The majority of Foster Wheeler  Ltd.’s invested capital is expected to be recovered during the early stages of  processing the waste materials. This project’s performance exceeded  expectations during the first quarter of 2004 and successfully processed  sufficient materials to fully recover the forecasted 2004 capital recovery  amount.  The original forecast expected  to recover the capital over the first three quarters of 2004. At March 26, 2004  the project generated a year to date net cash flow of approximately $32,400.  Thenet cash flow forecast for 2004 from this project remains in excess of  $40,000.   On February  26, 2004, the California Public Utilities Commission approved certain changes  to Pacific Gas & Electric’s rates.   As relevant to the Foster Wheeler Ltd.’s subsidiary’s Martinez Project,  the E-20T rate has been decreased by approximately 15% retroactive to January  1, 2004, having a negative 8**Back to Index** effect on the subsidiary’s 2004  cash flow and earnings.  This rate  change has been reflected in Foster Wheeler Ltd.’s liquidity forecast. As part of its  debt restructuring plan described below, Foster Wheeler Ltd. and certain of its  subsidiaries filed an amended registration statement with the Securities and  Exchange Commission (“SEC”) on April 12, 2004 and on May 4, 2004, relating to  an exchange offer for all of the existing $175,000 Trust Securities, $210,000  Convertible Subordinated Notes (“Convertible Notes”), $113,700 Subordinated  Robbins Exit Funding Obligations (“Robbins Bonds”), and $200,000 2005 Senior  Notes (the “Senior Notes”) due 2005. On February 5,  2004, Foster Wheeler Ltd. announced, in support of its restructuring  activities, a number of institutional investors have committed to provide  $120,000 of new financing in a private transaction to Foster Wheeler Ltd. to  replace the current term loan and the revolving credit facility portions of its  Senior Credit Facility.  This commitment  is contingent upon the completion of the proposed exchange offer.  Additionally, Foster Wheeler Ltd. has  discontinued its previously announced plans to divest one of its European  operating units. The total  amount of debt and Trust Securities subject to the proposed exchange offer that  is part of Foster Wheeler Ltd.’s planned restructuring is approximately  $700,000.  Interest expense incurred on  this debt in 2003 totaled approximately $55,000.  Foster Wheeler Ltd. expects to offer a mix of equity as well as  debt with longer maturities in exchange for these securities.  Foster Wheeler Ltd. anticipates that both  total debt and related interest expense would be significantly reduced upon  completion of the debt exchange offer; however, Foster Wheeler Ltd. may not  complete the exchange offer on acceptable terms, or at all. Failure by  Foster Wheeler Ltd. to achieve its cash flow forecast or to complete the  components of the restructuring plan on acceptable terms would have a material  adverse effect on Foster Wheeler Ltd.’s and the Capital Trust’s financial  condition.  These matters raise  substantial doubt about both Foster Wheeler Ltd.’s and the Capital Trust’s  ability to continue as a going concern. In August  2002, Foster Wheeler Ltd. finalized a Senior Credit Facility with its lender  group. This facility included a $71,000 term loan, a $69,000 revolving credit  facility, and a $149,900 letter of credit facility, which expires on April 30,  2005. The Senior Credit Facility is secured by the assets of Foster Wheeler  Ltd.’s domestic subsidiaries, the stock of the domestic subsidiaries of Foster  Wheeler Ltd., and, in connection with Amendment No. 3 discussed below, 100% of  the stock of the first-tier foreign subsidiaries of Foster Wheeler Ltd.  The Senior Credit Facility has no required  repayments prior to maturity on April 30, 2005.  The agreement requires prepayments from proceeds of assets sales,  the issuance of debt or equity, and from excess cash flow. Foster Wheeler Ltd.  retained the first $77,000 of such amounts and also retains a 50% share of the  balance. With Foster Wheeler Ltd.’s sale of theEnvironmental net assets on  March 7, 2003, and an interest in a corporate office building on March 31,  2003, the $77,000 threshold was exceeded. Accordingly, principal prepayments of  $1,250 and $11,800 were made on the term loan in the first quarter of 2004 and  during the full year of 2003, respectively. The financial  covenants in the Senior Credit Facility include a senior leverage ratio and a  minimum EBITDA defined in the agreement, as amended.  Compliance with these covenants is measured quarterly.  The EBITDA covenant compares the actual  average rolling four quarter EBITDA, as adjusted in the Senior Credit Facility,  to minimum EBITDA targets.  The senior  leverage covenant compares actual average rolling EBITDA, as adjusted in the  Senior Credit Facility, to total senior debt.   The resultant multiple of debt to EBITDA must be less than maximum  amounts specified in the Senior Credit Facility.  Management’s current forecast indicates that Foster Wheeler Ltd.  will be in compliance with these covenants throughout 2004. 9**Back to Index** Amendment  No. 1 to the Senior Credit Facility, obtained on November 8, 2002,  provides covenant relief of up to $180,000 of gross pretax charges recorded by Foster  Wheeler Ltd. in the third quarter of 2002. The amendment further provides that  up to an additional $63,000 in pretax charges related to specific contingencies  may be excluded from the covenant calculation through December 31, 2003, if  incurred. As of December 26, 2003, $31,000 of the contingency risks was  favorably resolved, and additional project reserves were established for  $32,000 leaving a contingency balance of $0. Amendment No.  2 to the Senior Credit Facility, entered into on March 24, 2003, modifies  (i) certain definitions of financial measures utilized in the calculation of  the financial covenants and (ii) the Minimum EBITDA, and Senior Debt Ratio, as  specified in section 6.01 of the Credit Agreement. In connection with this  amendment of the Credit Agreement, Foster Wheeler Ltd. made a prepayment of  principal in the aggregate amount of $10,000 in March 2003. Amendment No.  3 to the Senior Credit Facility, entered into on July 14, 2003, modified  certain affirmative and negative covenants to permit the exchange offer  described elsewhere in this report, other internal restructuring transactions  as well as transfers, cancellations and setoffs of certain intercompany  obligations. The terms of the amendment called for Foster Wheeler Ltd. to pay a  fee equal to 5% of the lenders’ credit exposure since it had not made a  required prepayment of principal under the Senior Credit Facility of $100,000  on or before March 31, 2004. Foster Wheeler Ltd. paid the required fee of  $13,600 on March 31, 2004. The annual interest rate on borrowings under the  Senior Credit Facility has increased and will continue to increase an  additional 0.5% each quarter until Foster Wheeler Ltd. repays $100,000 of  indebtedness under the Senior Credit Facility. The fee was included in Foster  Wheeler Ltd.’sliquidity forecast for 2004. Holders of  Foster Wheeler Ltd.’s Senior Notes due November 15, 2005 have a security  interest in the stock and debt of certain of Foster Wheeler LLC’s subsidiaries  and on facilities owned by Foster Wheeler LLC or its subsidiaries that  exceed 1% of consolidated net tangible assets, in each case to the extent such  stock, debt and facilities secure obligations under the revolving portion of  the Senior Credit Facility.  As  permitted by the Indenture, the Term Loan and the obligations under the  letter of credit facility (collectively approximating $155,200 as of March 26,  2004) have priority to the Senior Notes in these assets while the security  interest of the Senior Notes ranks equally and ratably with $69,000 of  revolving credit borrowings under the Senior Credit Facility. Foster Wheeler  Ltd. finalized a sale/leaseback arrangement in the third quarter of 2002 for an  office building at its corporate headquarters.   This capital lease arrangement leases the facility to Foster Wheeler  Ltd. for an initial non-cancelable period of 20 years.  Foster Wheeler Ltd. entered into a binding  agreement in the first quarter 2004 to sell a second corporate office building.  The sale closed in the second quarter 2004  and generated net cash proceeds of $16,400.   Of this amount, 50% has been repaid to the Senior Credit Facilities’  lenders in the second quarter 2004. In the third  quarter of 2002, Foster Wheeler Ltd. entered into a receivables financing  facility that matures on August 15, 2005 and is secured by a portion of certain  of Foster Wheeler Ltd.’s domestic trade receivables.  Under this agreement, Foster Wheeler Ltd. has the ability to  borrow up to a maximum of $40,000 using eligible trade accounts receivable as  collateral.  The facility is subject to  covenant compliance.  The financial  covenants commenced at the end of the first quarter of 2003 and include a  senior leverage ratio and a minimum EBITDA level.  Noncompliance with the financial covenants allows the lender to  terminate the arrangement and accelerate any amounts then outstanding.  No borrowings were outstanding under this  facility as of March 26, 2004 or December 26, 2003.   On January 26,  2004, certain Foster Wheeler Ltd. subsidiaries in the U.K. entered into a two-year  revolving credit facility with Saberasu Japan Investments II B.V. in the  Netherlands.  The facility provides for  up to $45,000 of additional revolving loans available to provide working  capital which may 10**Back to Index** be required by these  subsidiaries as they seek to grow the business by pursuing a larger volume of  lump sum EPC contracts.  The facility is  secured by substantially all of the assets of these subsidiaries.  The facility is subject to covenant  compliance.  Such covenants include a  minimum EBITDA level and a loan to EBITDA ratio.  As of March 26, 2004, the facility remained undrawn. The Senior  Credit Facility, the sale/leaseback arrangement, and the receivables financing  arrangement have quarterly debt covenant requirements. Management’s forecast  indicates that Foster Wheeler Ltd. will be in compliance with the debt  covenants throughout 2004. However, there can be no assurance that the actual  financial results will match the forecasts or that Foster Wheeler Ltd. will not  violate the covenants. If Foster Wheeler Ltd. violates a covenant under the  Senior Credit Facility, the sale/leaseback arrangement, or receivables  financing arrangement, repayment of amounts borrowed under such agreements  could be accelerated. Acceleration of these facilities would result in a  default under the following agreements:   the Senior Notes, the Convertible Notes, the Subordinated Deferrable  Interest Debentures, the Subordinated Robbins Facility Exit Funding  Obligations, and certain of the special-purpose projectdebt facilities, which  would allow such debt to be accelerated as well.  The total amount of Foster Wheeler Ltd. debt that could be  accelerated, including the amount outstanding under the Senior Credit Facility,  is $915,000 as of March 26, 2004.   Foster Wheeler Ltd. would not be able to repay amounts borrowed if the  payment dates were accelerated.  The  debt covenants and the potential payment acceleration requirements raise  substantial doubts about Foster Wheeler Ltd.’s and the Capital Trust’s ability  to continue as a going concern.  The  financial statements of the Capital Trust do not include any adjustments that  might result from the outcome of this uncertainty. On November  14, 2003, Foster Wheeler Ltd. was de-listed from the New York Stock Exchange  (“NYSE”) because it ceased to meet NYSE continued listing criteria.  Foster Wheeler Ltd.’s common stock and the  Trust Securities are quoted and traded on the Over-the-Counter Bulletin Board  (“OTCBB”). Under Bermuda  law, the consent of the Bermuda Monetary Authority (“BMA”) is required prior to  the transfer by non-residents of Bermuda of a Bermuda company’s shares.  Since becoming a Bermuda company, Foster  Wheeler Ltd. has relied on an exemption from this rule provided to NYSE-listed  companies.  Due to Foster Wheeler Ltd.  being de-listed, this exemption is no longer available.  To address this issue, Foster Wheeler Ltd. obtained  the consent of the BMA to transfers between non-residents for so long as its  shares continue to be quoted in the Pink Sheets or on the OTCBB.  Foster Wheeler Ltd. believes that this  consent will continue to be available. **3.****Summary of Significant Accounting Policies** The Capital  Trust’s balance sheet as of March 26, 2004 and December 26, 2003 and the  related statements of operations and cash flows for the three-month periods  ended March 26, 2004 and March 28, 2003, are unaudited.  In the opinion of management, all  adjustments necessary for a fair presentation of such financial statements have  been included. Such adjustments only consisted of normal recurring items.  Interim results are not necessarily indicative of results for a full year.  **Use of Estimates** —  The preparation of financial statements in conformity with accounting  principles generally accepted in the United States of America requires  management to make estimates and assumptions that affect the reported amounts  of assets and liabilities at the date of the financial statements and revenues  and expenses during the periods reported. Actual results could differ from  those estimates. Changes in estimates are reflected in the periods in which  they become known. Significant estimates are used when accounting for the  collectibility of the Debentures and related interest income from Foster  Wheeler LLC. **Valuation Allowance**  — The Capital Trust uses the market price of the Trust Securities as a proxy  for the fair value of the Debentures.   The Capital Trust established a valuation allowance for the 11**Back to Index** difference between the  principal amount of the Debentures (included accrued unpaid interest  receivable) and the fair value of the Debentures.  **Income Taxes** — The  Capital Trust is not taxable as a corporation for United States federal income  tax purposes.  However, the holders of  the Trust Securities are required to include in their gross income for United  States federal income tax purposes the pro rata portion of interest paid or  accrued on the mandatorily redeemable preferred securities, whether or not cash  is actually distributed to the holders. **4.****Investment in Subordinated Deferrable Interest Debentures of Foster    Wheeler LLC** The Capital  Trust has established a valuation allowance on the Debentures and related  interest income receivable from Foster Wheeler LLC.  The valuation allowance was based on the financial condition of  Foster Wheeler LLC and Foster Wheeler Ltd. and Foster Wheeler LLC’s decision to  exercise its right to defer payments on the Debentures since January 15,  2002.  The valuation allowance was  determined using the market price of the Trust Securities, which is deemed a  proxy for the fair value of the Debentures. **5.****Mandatorily Redeemable Preferred Securities** The Capital  Trust has deferred the distributions on the Trust Securities in conjunction  with Foster Wheeler LLC’s decision to defer interest payments on the Debentures  since January 15, 2002.  During this  deferral period, distributions on Trust Securities will continue to accrue at  an annual rate of 9%, compounded quarterly.   The deferred distributions accrue interest at an annual rate of 9%,  compounded quarterly, as well.   **6.****Financial Instruments** The following  methods and assumptions were used to estimate the fair value of each class of  financial instruments for which it is practicable to estimate values: **Investments** — The  fair value of the Capital Trust’s investment in subordinated deferrable  interest debentures is estimated based upon the market price of the Trust  Securities. **Long-term Debt** — The  fair value of the Capital Trust’s long-term debt (including deferred accrued  mandatorily redeemable preferred security distributions) is estimated based on  the quoted market prices. **Carrying Amounts and Fair Values**  — The estimated fair values of the Capital Trust’s financial instruments are as  follows:   **March 26,    2004** **December    26, 2003**       **Carrying    Amount** **Fair Value** **Carrying    Amount** **Fair Value**       Investments $36,400 $36,400 $21,000 $21,000 Long-term debt  (217,813) (36,400) (213,021) (21,000) 12**Back to Index** **ITEM  2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF  OPERATIONS****(in  thousands of dollars)** The following  is Management’s Discussion and Analysis of certain significant factors that  have affected the financial condition and results of operations of FW Preferred  Capital Trust I (the “Capital Trust”) for the periods indicated below.  This Management’s Discussion and Analysis  and other sections of this Report on Form 10-Q contain forward-looking  statements that are based on management’s assumptions, expectations and  projections about the Capital Trust.   Such forward-looking statements by their nature involve a degree of risk  and uncertainty.   This  discussion and analysis should be read in conjunction with the financial  statements included on this Quarterly Report on Form 10-Q.   **Overview** The Capital  Trust is a wholly owned finance subsidiary of Foster Wheeler LLC.  The financial condition and results of  operations of the Capital Trust are dependent on the financial condition and  results of operations of Foster Wheeler Ltd. and Foster Wheeler LLC since the  Capital Trust’s only assets are the 9.0% junior subordinated deferrable  interest debentures of Foster Wheeler LLC (the “Debentures”).  The Capital Trust’s only source of income  and cash is the interest income on the Debentures.  These Debentures have essentially the same terms as the $175,000  of preferred trust securities (the “Trust Securities”).  Therefore, the Capital Trust can only make  payments on the Trust Securities if Foster Wheeler LLC first makes payments on  the Debentures.   Since January  15, 2002, Foster Wheeler LLC has exercised its right to defer payments on the  Debentures.  Foster Wheeler Ltd.’s  Senior Credit Facility, as amended, requires that the payment of the dividends  on the Trust Securities continue to be deferred; accordingly, no dividends were  paid during the first quarter 2004.   **Results  of Operations** **Three  months ended March 26, 2004 compared to the three months ended March 28, 2003**   **Three    Months Ended**      **March 26,    2004** **March 28,    2003** **$ Change** **% Change**       Change in valuation    allowance $15,400 $7,350 $8,050  109.5% The valuation  allowance on the investment in subordinated deferrable interest debentures and  related interest income receivable was established based on the financial  condition of Foster Wheeler LLC and Foster Wheeler Ltd. and Foster Wheeler  LLC’s decision to exercise its right to defer payments on the subordinated  deferrable interest debentures since January 15, 2002. The decrease in the  valuation allowance for the three months ended March 26, 2004, resulted from an  increase in the market price of the Trust Securities, which is deemed a proxy  for the fair value of the subordinated deferrable interest debentures.  The market price per security of the Trust  Securities was $5.20 as of March 26, 2004, $3.00 as of December 26, 2003 and  $2.40 as of March 28, 2003. 13**Back to Index**   **Three Months Ended**      **March 26, 2004** **March 28,        2003** **$ Change** **% Change**       Preferred    security distributions expense $4,792 $4,372 $420  9.6% The preferred  security distributions expense represents the accrual for cash distributions  due on the Trust Securities.  Distributions  accrue at an annual rate of 9% on the $175,000 liquidation amount of the Trust  Securities, compounded quarterly.   Additionally, deferred distributions accrue interest at an annual rate  of 9%, compounded quarterly, as well.   Accordingly, the increase in preferred security distributions expense  for the three months ended March 26, 2004, resulted from the accrual on the  undistributed preferred security distributions.  As noted previously, the Capital Trust has deferred the  distributions on the Trust Securities in conjunction with Foster Wheeler LLC’s  decision to defer interest payments on the Debentures since January 15,  2002.   **Financial  Condition** The investment  in subordinated deferrable interest debentures of Foster Wheeler LLC increased  by $15,400 for the three months ended March 26, 2004, as a result of a decrease  in the valuation allowance.  The change  in the required valuation allowance resulted from an increase in the market  price of the Trust Securities, which is deemed a proxy for the fair value of  the subordinated deferrable interest debentures. The increase  in the deferred accrued mandatorily redeemable preferred security distributions  from 2003 to 2004 results from the deferral of distributions on the Trust  Securities in conjunction with Foster Wheeler LLC’s decision to defer interest  payments on the Debentures since January 15, 2002.  During this deferral period, distributions on Trust Securities  will continue to accrue at an annual rate of 9%, compounded quarterly.  Additionally, deferred distributions accrue  interest at an annual rate of 9%, compounded quarterly, as well.   The preferred  securities holders’ deficit for the three months ended March 26, 2004 decreased  by $10,600, due to solely to the net earnings for the period.   **Liquidity  and Capital Resources** The  accompanying financial statements of the Capital Trust are prepared on a going  concern basis, which contemplates the realization of assets and the  satisfaction of liabilities in the normal course of business.  The Capital Trust’s ability to continue as a  going concern is dependent on Foster Wheeler Ltd.’s ability to continue as a  going concern as the Capital Trust’s only asset is the Debentures.  Foster Wheeler Ltd. may not, however, be  able to continue as a going concern. The realization of assets and the  satisfaction of liabilities in the normal course of business are dependent on,  among other things, Foster Wheeler Ltd.’s ability to return to profitability,  to continue to generate cash flows from operations, asset sales and collections  of receivables to fund its obligations including those resulting from the  subordinated deferrable interest debentures, asbestos related liabilities, aswell as maintaining credit facilities and bonding capacity adequate to conduct  its business.  Foster Wheeler Ltd. has  incurred losses for the three months ended March 26, 2004 and in each of the  years in the three-year period ended December 26, 2003 and has a shareholders’  deficit of $880,700 as of March 26, 2004. Foster Wheeler Ltd. has substantial  debt obligations including its Senior Credit Facility and during 2002, it was unable  to comply with certain debt covenants under the previous revolving credit  agreement. As described in more detail below, Foster Wheeler Ltd. received  waivers of covenant violations and ultimately negotiated new credit facilities  in August 2002. In November 2002, the new Senior Credit Facility was amended to  provide covenant relief of up to $180,000 of gross pretax charges recorded in  the third quarter of 2002 and also to provide that up 14**Back to Index** to an additional $63,000 in  pretax charges related to specific contingencies could be excluded from the  covenant calculation through December 2003, if incurred. In March 2003, the  Senior Credit Facility was again amended to provide further covenant relief by  modifying certain definitions of financial measures utilized in the calculation  of the financial covenants and the minimum earnings before interest expense,  taxes, depreciation and amortization (“EBITDA”) and senior debt ratio. The  credit facilities were also amended in July 2003 to provide waivers of the  applicable sections of the Senior Credit Facility to permit the exchange offers  described elsewhere in this report, other internal restructuring transactions  as well as transfers, cancellations and setoffs of certain intercompany  obligations.  There is no assurance that  Foster Wheeler Ltd. will be able to comply with the terms of the Senior Credit  Facility, as amended, andother debt agreements during 2004.  Foster Wheeler Ltd.’s current forecast  indicates that Foster Wheeler Ltd. will be in compliance with its financial  covenants throughout 2004.  However,  there can be no assurance that the actual financial results will match the  forecasts or that Foster Wheeler Ltd. will not violate the covenants. Foster Wheeler  Ltd.’s U.S. operations, which include the corporate functions, are cash flow  negative and are expected to continue to generate negative cash flow due to a  number of factors including costs related to Foster Wheeler Ltd.’s  indebtedness, obligations to fund U.S. pension plans, and other expenses  related to corporate overhead.  Foster Wheeler  Ltd.’s management closely monitors liquidity and updates its U.S. liquidity  forecasts weekly. These forecasts include, among other analyses, cash flow  forecasts, which include cash on hand, cash flows from operations, cash  repatriations and loans from non-U.S. subsidiaries, asset sales, collections of  receivables and claims recoveries, and working capital needs and unused credit  line availability.  Foster Wheeler  Ltd.’s current cash flow forecasts indicate that sufficient cash will be  available to fund Foster Wheeler Ltd.’s U.S. and foreign working capital needs  throughout 2004.  However, there can be  no assurance that sufficient cash will be available in 2004.   As of March  26, 2004, Foster Wheeler Ltd. had aggregate indebtedness of approximately  $1,000,000.  The corporate debt must be  funded primarily with distributions from Foster Wheeler Ltd.’s foreign  subsidiaries, including the subordinated deferrable interest debentures.  As of March 26, 2004, Foster Wheeler Ltd.  had cash and cash equivalents on hand, short-term investments, and restricted  cash totaling $453,800 compared to $430,200 as of December 26, 2003.  Of the $453,800 total at March 26, 2004,  approximately $355,800 was held by foreign subsidiaries. Foster Wheeler Ltd. is  sometimes required to cash collateralize bonding or certain bank facilities and  such amounts are included in restricted cash. The amount of Foster Wheeler  Ltd.’s restricted cash at March 26, 2004 was $73,000, of which $61,200 relates  to the non-U.S. operations.  Foster Wheeler  Ltd. also requires cash distributions from its non-U.S. subsidiaries in the  normal course of its operations to meet its U.S. operations’ minimum working  capital needs. Foster Wheeler Ltd.’s current 2004 forecast assumes total cash  repatriation from its non-U.S. subsidiaries from royalties, management fees,  intercompany loans, debt service on intercompany loans, and dividends of  approximately $61,000.  In 2003, Foster  Wheeler Ltd. repatriated approximately $100,000 from its non-U.S. subsidiaries.   There can be  no assurance that the forecasted foreign cash repatriation will occur as there  are significant legal and contractual restrictions on Foster Wheeler Ltd.’s  ability to repatriate funds from its non-U.S. subsidiaries. These subsidiaries  need to keep certain amounts available for working capital purposes, to pay  known liabilities, and for other general corporate purposes. Such amounts  exceed, and are not directly comparable to, the foreign component of restricted  cash previously noted.  In addition,  certain of Foster Wheeler Ltd.’s non-U.S. subsidiaries are parties to loan and  other agreements with covenants, and are subject to statutory minimum  capitalization requirements in their jurisdictions of organization that  restrict the amount of funds that such subsidiaries may distribute.  Distributions in excess of these specified amounts would violate the terms of  the agreements or applicable law whichcould result 15**Back to Index** in civil or criminal penalties.  The repatriation of funds may also subject those funds to taxation. As a result  of these factors, Foster Wheeler Ltd. may not be able to repatriate and utilize  funds held by its non-U.S. subsidiaries or future earnings of those  subsidiaries in sufficient amounts to fund its U.S. working capital  requirements, to repay debt, or to satisfy other obligations of its U.S.  operations, which could limit Foster Wheeler Ltd.’s and Capital Trust’s ability  to continue as a going concern.  Commercial  operations under a domestic contract retained by Foster Wheeler Ltd. commenced  in January 2004.  The plant processes  low-level nuclear waste for the U.S. Department of Energy (“DOE”). Foster  Wheeler Ltd. funded the plant’s construction costs and operates the  facility.  The majority of Foster  Wheeler Ltd.’s invested capital is recovered during the early stages of  processing the waste materials. This project’s performance exceeded expectations  during the first quarter and successfully processed sufficient materials to  fully recover the 2004 capital recovery amount. The original forecast expected  to recover the capital over the first three quarters of 2004. At March 26, 2004  the project generated a year to date net cash flow of approximately $32,400.  Net cash flow forecast for 2004 from this project remains in excess of$40,000.             On February  26, 2004, the California Public Utilities Commission approved certain changes  to Pacific Gas & Electric’s rates.   As relevant to Foster Wheeler Ltd.’s subsidiary’s Martinez Project, the  E-20T rate has been decreased by approximately 15% retroactive to January 1,  2004, having a negative effect on the subsidiary’s 2004 cash flow and  earnings.  This rate change has been  reflected in Foster Wheeler Ltd.’s liquidity forecast. There can be  no assurance that cash amounts realized and/or timing of the cash flows will  match the Foster Wheeler Ltd.’s forecast. As part of its  debt restructuring plan described below, Foster Wheeler Ltd. and certain of its  subsidiaries filed an amended registration statement with the Securities and  Exchange Commission (“SEC”) on April 12, 2004 and on May 4, 2004, relating to  an exchange offer for all of the existing $175,000 Trust Securities, $210,000  Convertible Notes, $113,700 Robbins Bonds, and $200,000 Senior Notes. On February 5,  2004, Foster Wheeler Ltd. announced, in support of its restructuring  activities, a number of institutional investors have committed to provide  $120,000 of new financing in a private transaction to Foster Wheeler Ltd. to  replace the current term loan and the revolving credit facility portions of its  Senior Credit Facility.  This commitment  is contingent upon the completion of the proposed exchange offer.  Additionally, Foster Wheeler Ltd. has  discontinued its previously announced plans to divest one of its European  operating units. The total  amount of debt and preferred trust securities subject to the proposed exchange  offer that is part of Foster Wheeler Ltd.’s planned restructuring is approximately  $700,000.  Interest expense incurred on  this debt in 2003 totaled approximately $55,000.  Foster Wheeler Ltd. expects to offer a mix of equity as well as  debt with longer maturities in exchange for these securities.  Foster Wheeler Ltd. anticipates that both  total debt and related interest expense would be significantly reduced upon  completion of the debt exchange offer; however, Foster Wheeler Ltd. may not  complete the exchange offer on acceptable terms, or at all. Failure by  Foster Wheeler Ltd. to achieve its cash flow forecast or to complete the  components of the restructuring plan on acceptable terms would have a material  adverse effect on Foster Wheeler Ltd.’s and the Capital Trust’s financial  condition. These matters raise substantial doubt about Foster Wheeler Ltd.’s  and the Capital Trust’s ability to continue as a going concern. In August  2002, Foster Wheeler Ltd. finalized a Senior Credit Facility with its lender  group. This facility included a $71,000 term loan, a $69,000 revolving credit  facility, and a $149,900 letter of credit 16**Back to Index** facility which expires on April  30, 2005. The Senior Credit Facility is secured by the assets of the domestic  subsidiaries, the stock of the domestic subsidiaries, and, in connection with  Amendment No. 3 discussed below, 100% of the stock of the first-tier foreign  subsidiaries.  The Senior Credit  Facility has no required repayments prior to maturity on April 30, 2005.  The agreement requires prepayments from  proceeds of assets sales, the issuance of debt or equity, and from excess cash  flow.  Foster Wheeler Ltd. retained the  first $77,000 of such amounts and also retains a 50% share of the balance.  With the Foster Wheeler Ltd.’s sale of its  environmental business on March 7, 2003, and an interest in a corporate office  building on March 31, 2003, the $77,000 threshold was exceeded. Accordingly,  principal prepayments of $1,250 and $11,800 were made on the term loan in the  first quarter of 2004 and during the full year of2003, respectively. The financial  covenants in the Senior Credit Facility include a senior leverage ratio and a  minimum EBITDA as defined in the agreement, as amended.  Compliance with these covenants is measured  quarterly.  The EBITDA covenant compares  the actual average rolling four quarter EBITDA, as adjusted in the Senior  Credit Facility, to minimum EBITDA targets.   The senior leverage covenant compares actual average rolling EBITDA, as  adjusted in the Senior Credit Facility, to total senior debt.  The resultant multiple of debt to EBITDA  must be less than maximum amounts specified in the Senior Credit Facility.  Management’s current forecast indicates that  Foster Wheeler Ltd. will be in compliance with these covenants throughout  2004.  However, there can be no  assurance that the actual results will match to forecasts or that Foster  Wheeler Ltd. will not violate the covenants. Amendment  No. 1 to the Senior Credit Facility, obtained on November 8, 2002,  provides covenant relief of up to $180,000 of gross pretax charges recorded by  Foster Wheeler Ltd. in the third quarter of 2002. The amendment further  provides that up to an additional $63,000 in pretax charges related to specific  contingencies may be excluded from the covenant calculation through December  31, 2003, if incurred. By the fourth quarter 2003, $31,000 of the contingency  risks were favorably resolved, and additional project reserves were established  for $32,000 leaving a contingency balance of $0. Amendment No.  2 to the Senior Credit Facility, entered into on March 24, 2003, modifies  (i) certain definitions of financial measures utilized in the calculation of  the financial covenants and (ii) the Minimum EBITDA, and Senior Debt Ratio, as  specified in section 6.01 of the Credit Agreement. In connection with this  amendment of the Credit Agreement, Foster Wheeler Ltd. made a prepayment of  principal in the aggregate amount of $10,000 in March 2003.  Amendment No.  3 to the Senior Credit Facility, entered into on July 14, 2003, modified  certain affirmative and negative covenants to permit the exchange offer  described elsewhere in this report, other internal restructuring transactions  as well as transfers, cancellations and setoffs of certain intercompany  obligations. The terms of the amendment called for Foster Wheeler Ltd. to pay a  fee equal to 5% of the lenders’ credit exposure since it had not made a  required prepayment of principal under the Senior Credit Facility of $100,000  on or before March 31, 2004. Foster Wheeler Ltd. paid the required fee of  $13,600 on March 31, 2004. The annual interest rate on borrowings under the  Senior Credit Facility has increased and will continue to increase an  additional 0.5% each quarter until the Company repays $100,000 of indebtedness  under the Senior Credit Facility. The fee was included in Foster Wheeler Ltd.’s  liquidityforecast for 2004. Holders of  Foster Wheeler Ltd.’s Senior Notes due November 15, 2005 have a security  interest in the stock and debt of certain of Foster Wheeler LLC’s subsidiaries  and on facilities owned by Foster Wheeler LLC or its subsidiaries that  exceed 1% of consolidated net tangible assets, in each case to the extent such  stock, debt and facilities secure obligations under the revolving portion of  the Senior Credit Facility.  The Term  Loan and the obligations under the letter of credit facility (collectively  approximating $155,200 as of March 26, 2004) have priority to the Senior Notes  in these assets while the security 17**Back to Index**  interest of the Senior Notes ranks equally and ratably with  $69,000 of revolving credit borrowings under the Senior Credit Facility. Foster Wheeler  Ltd. finalized a sale/leaseback arrangement in the third quarter of 2002 for an  office building at its corporate headquarters. This capital lease arrangement  leases the facility to Foster Wheeler Ltd. for an initial non-cancelable period  of 20 years.  Foster Wheeler Ltd.  entered into a binding agreement in the first quarter 2004 to sell a second  corporate office building. The sale closed in the second quarter 2004 and  generated net cash proceeds of $16,400. Of this amount, 50% has been repaid to  the Senior Credit Facilities’ lenders in the second quarter 2004. In the third  quarter of 2002, Foster Wheeler Ltd. also entered into a receivables financing  arrangement of up to $40,000. The funding available to Foster Wheeler Ltd. is  dependent on the amount and characteristics of the domestic receivables. The  amount available to Foster Wheeler Ltd. fluctuates daily, but Foster Wheeler  Ltd. estimates that approximately $10,000 will be available during 2004. This  financing arrangement expires in August 2005 and is subject to covenant  compliance.  The financial covenants  commenced at the end of the first quarter of 2003 and include a senior leverage  ratio and a minimum EBITDA level. Noncompliance with the financial covenants  allows the lender to terminate the arrangement and accelerate any amounts then  outstanding.  As of March 26, 2004 and  December 26, 2003, the Company had $0 borrowings outstanding under this  facility. On January 26,  2004, Foster Wheeler Ltd.’s subsidiaries in the U.K. entered into a two-year  revolving credit facility with Saberasu Japan Investments II B.V. in the  Netherlands.  The facility provides for  up to $45,000 of additional revolving loans available to provide working  capital, which may be required by these subsidiaries as they seek to grow the  business by pursuing a larger volume of lump sum EPC contracts.  The facility is secured by substantially all  of the assets of these subsidiaries.   The facility is subject to covenant compliance.  Such covenants include a minimum EBITDA  level and a loan to EBITDA ratio.  As of  March 26, 2004, the facility remained undrawn. As previously  noted, since January 15, 2002, Foster Wheeler Ltd. has exercised its right to  defer payments on the junior subordinated debentures. The Senior Credit  Facility, as amended, requires that the payment of the dividends on the Trust  Securities continue to be deferred; accordingly, no dividends were paid during  the first quarter 2004.   The Senior  Credit Facility, the sale/leaseback arrangement, and the receivables financing  arrangement have quarterly debt covenant requirements. Management’s forecast  indicates that Foster Wheeler Ltd. will be in compliance with the debt  covenants throughout 2004.  However,  there can be no assurance that the actual results will match the forecasts or  that Foster Wheeler Ltd. will not violate the covenants. If Foster Wheeler Ltd.  violates a covenant under the Senior Credit Facility, the sale/leaseback  arrangement or the receivables financing arrangement, repayment of amounts  borrowed under such agreements could be accelerated. Acceleration of these  facilities would result in a default under the following agreements: the Senior  Notes, the Convertible Notes, the Subordinated Deferrable Interest Debentures,  the Subordinated Robbins Facility Exit Funding Obligations, and certain of the  special-purpose project debtfacilities, which would allow such debt to be  accelerated as well.  The total amount  of Foster Wheeler Ltd. debt that could be accelerated, including the amount  outstanding under the Senior Credit Facility, is $915,000 as of March 26, 2004. The debt  covenants and the potential payment acceleration requirements raise substantial  doubts about Foster Wheeler Ltd.’s and the Capital Trust’s ability to continue  as a going concern.  The financial  statements of the Capital Trust do not include any adjustments that might  result from the outcome of this uncertainty. Foster Wheeler  Ltd.’s operations generated cash of approximately $29,600 during the first  quarter 2004. The net cash generated in the first quarter 2004 was primarily  due to recovery of working capital 18**Back to Index** from the DOE project previously  noted.    During the twelve months ended December 26, 2003, Foster Wheeler Ltd. used    cash for operations of $62,100.   Management had previously forecasted    that much of positive cash flow generated in 2002 would reverse in 2003 due    to the timing flows for several major projects.  Foster Wheeler  Ltd.’s working capital varies from period to period depending on the mix, stage  of completion and commercial terms and conditions of Foster Wheeler Ltd.’s  contracts. Working capital needs increased in prior years as a result of Foster  Wheeler Ltd. satisfying requests from its customers for more favorable payment  terms under contracts. Such requests generally include reduced advance payments  and less favorable payment schedules to Foster Wheeler Ltd.  As previously noted, Management forecasts  that there will be sufficient liquidity to meet Foster Wheeler Ltd.’s operating  requirement throughout 2004. On November  14, 2003, the New York Stock Exchange (“NYSE”) de-listed Foster Wheeler Ltd.’s  common stock as well as the Trust Securities based on the inability to meet  NYSE listing criteria. Foster Wheeler Ltd. common stock and the Trust  Securities are quoted on the Over-the-Counter Bulletin Board (“OTCBB”). Under Bermuda  law, the consent of the Bermuda Monetary Authority (“BMA”) is required prior to  the transfer by non-residents of Bermuda of a Bermuda company’s shares.   Since becoming a Bermuda company, Foster Wheeler Ltd. has relied on an  exemption from this rule provided to NYSE-listed companies. Due to Foster Wheeler  Ltd.’s de-listing, this exemption was no longer available.  To address  this issue, Foster Wheeler Ltd. obtained the consent of the BMA to transfers  between non-residents for so long as the Company’s shares continue to be quoted  in the Pink Sheets or on the OTCBB.  Foster Wheeler Ltd. believes that  this consent will continue to be available. **ITEM 3.  QUANTITATIVE AND  QUALITATIVE DISCLOSURES ABOUT MARKET RISK** The Capital  Trust is not exposed to market risks due to changes in interest rates as both  the subordinated deferrable interest debentures and the mandatorily redeemable  preferred securities bear interest at a fixed rate of 9%.   The Capital  Trust is not exposed to market risks due to changes in currency values as all  activities are denominated in United States dollars.        **ITEM  4.  CONTROLS AND PROCEDURES** Included as  Exhibits 31.1 and 31.2 are the Certifications that are required under Section  302 of the Sarbanes-Oxley Act of 2002. This section of the Report contains  information concerning the controls evaluation referred to in the  Section 302 Certifications and the information contained herein should be  read in conjunction with the Certifications. The Capital  Trust’s internal controls are designed with the objective of ensuring that  assets are safeguarded, transactions are authorized, and financial reports are  prepared on a timely basis in accordance with generally accepted accounting  principles in the United States. The Capital Trust’s disclosure controls and  procedures are designed to comply with the regulations established by the SEC. Internal  controls, no matter how designed, have limitations. It is the Capital Trust’s  intent that the internal controls be conceived to provide adequate, but not  absolute, assurance that the objectives of the controls are met on a consistent  basis. Management plans to continue its review of internal controls and  disclosure procedures on an ongoing basis. Based on an  evaluation under the supervision and with the participation of Capital Trust’s  management, Capital Trust’s principal executive officer and principal financial  officer have concluded 19**Back to Index** that Capital Trust’s disclosure  controls and procedures (as defined in Rules 13a- 15(e) and 15d-15(e) under the  Securities Exchange Act of 1934, as amended) were effective as of March 26,  2004 to ensure that information required to be disclosed by the Capital Trust  in reports that it files or submits under the Exchange Act is recorded,  processed, summarized and reported within the time periods specified in  Securities and Exchange Commission rules and forms. **Safe  Harbor Statement** Management’s  Discussion and Analysis of Financial Condition and Results of Operations, other  sections of this Report on Form 10-Q and other reports and oral statements made  by representatives of the Capital Trust from time to time may contain  forward-looking statements that are based on management’s assumptions,  expectations and projections about the Capital Trust. These include statements  regarding the Capital Trust’s expectation regarding revenues and its liquidity.  Such forward-looking statements by their nature involve a degree of risk and  uncertainty. The Capital Trust cautions that a variety of important factors  could cause business conditions and results to differ materially from what is  contained in forward-looking statements. Factors and  assumptions are involved in the formation of forward-looking statements and the  failure of such other assumptions to be realized as well as other factors may  also cause actual results to differ materially from those projected. Most of  these factors are difficult to predict accurately and are generally beyond the  control of the Capital Trust.  The Capital  Trust undertakes no obligation to publicly update any forward-looking  statements, whether as a result of new information, future events or otherwise.  The reader is advised, however, to consult any additional disclosures the  Capital Trust makes in proxy statements, quarterly reports on Form 10-Q, annual  reports on Form 10-K and current reports on Form 8-K filed with the Securities  and Exchange Commission. 20**Back to Index** **PART  II.  OTHER INFORMATION** **ITEM  1. - LEGAL PROCEEDINGS** Not  applicable. **ITEM  6. - EXHIBITS AND REPORTS ON FORM 8-K** **Exhibits** **Exhibit No.** **Exhibits** 31.1 Section 302    Certification of Raymond J. Milchovich    |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|