##### 









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1933    
|  
|   |  | For the fiscal year ended December 31, 2005                                                 
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file number:
333-124454-13


AMERICAN BARGE LINE COMPANY


(Exact name of registrant as specified in its charter)


|                                                                                             |  |                                                    
|-------------------------------------------------------------------------------------------- |  | ---------------------------------------------------
|Delaware(State or other jurisdiction of
    incorporation or organization)                   |  | 03-0552366(I.R.S. Employer
     Identification No.)
|1701 East Market Street
     Jeffersonville, Indiana(Address of principal executive offices) |  | 47130(Zip Code)                                    

(812) 288-0100


(Registrants telephone number, including area code)


Not applicable


(Former name, former address and former fiscal year, if
changed since last report)


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


None


o þ


o þ


þ o


S-K 10-K 10-K. o


12b-2


o o þ


12b-2 o þ




|                                       |  |                              
|-------------------------------------- |  | -----------------------------
|Class                                  |  | Outstanding at March 22, 2006
|                                       |  |                              
|Common Stock, $.01 par value per share |  | 10 shares                    

10-K 10-K


DOCUMENTS INCORPORATED BY REFERENCE








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Table of Contents


|                                             |  |                                                                                                                          |  |      |    | 
|-------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------ |  | ---- | -- | 
|                                             |  |                                                                                                                          |  | Page |   
|                                             |  |                                                                                                                          |  |      |   
|PART I                                      
|Item 1.                                      |  | Business                                                                                                                 |  |      | 4  | 
|Item 1A.                                     |  | Risk Factors                                                                                                             |  |      | 14 | 
|Item 1B.                                     |  | Unresolved Staff Comments                                                                                                |  |      | 22 | 
|Item 2.                                      |  | Properties                                                                                                               |  |      | 22 | 
|Item 3                                       |  | Legal Proceedings                                                                                                        |  |      | 23 | 
|Item 4.                                      |  | Submission of Matters to a Vote of
    Security Holders                                                                  |  |      | *  | 
|                                            
|PART II                                     
|Item 5.                                      |  | Market for the Registrants
    Common Equity, Related Stockholder Matters and Issuer Purchases
    of Equity Securities |  |      | 25 | 
|Item 6.                                      |  | Selected Financial Data                                                                                                  |  |      | *  | 
|Item 7.                                      |  | Managements Narrative and
    Analysis of Results of Operations                                                         |  |      | 25 | 
|Item 7A.                                     |  | Quantitative and Qualitative
    Disclosures About Market Risk                                                           |  |      | 46 | 
|Item 8.                                      |  | Financial Statements and
    Supplementary Data                                                                          |  |      | 47 | 
|Item 9.                                      |  | Changes in and Disagreements with
    Accountants on Accounting and Financial Disclosure                                 |  |      | 91 | 
|Item 9A.                                     |  | Controls and Procedures                                                                                                  |  |      | 91 | 
|Item 9B.                                     |  | Other Information                                                                                                        |  |      | 91 | 
|                                            
|PART III                                    
|Item 10.                                     |  | Directors and Executive Officers of
    the Registrant                                                                   |  |      | *  | 
|Item 11.                                     |  | Executive Compensation                                                                                                   |  |      | *  | 
|Item 12.                                     |  | Security Ownership of Certain
    Beneficial Owners and Management                                                       |  |      | *  | 
|Item 13.                                     |  | Certain Relationships and Related
    Transactions                                                                       |  |      | *  | 
|Item 14.                                     |  | Principal Accountant Fees and
    Services                                                                               |  |      | *  | 
|                                            
|PART IV                                     
|Item 15.                                     |  | Exhibits and Financial Statement
    Schedules                                                                           |  |      | 91 | 
|                                            
|CEO Certification Pursuant to Section 302(a) |  |                                                                                                                          |  |     
|CFO Certification Pursuant to Section 302(a) |  |                                                                                                                          |  |     
|CEO Certification Pursuant to Section 906    |  |                                                                                                                          |  |     
|CFO Certification Pursuant to Section 906    |  |                                                                                                                          |  |     








| |   |                                                                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------
| | * | This item has been omitted pursuant to the reduced disclosure
    format as set forth in the General Instructions (I)(2)(a)
    and (c) of
    Form 10-K.

2



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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS


10-K






| |   |                                                                                                                                                                                                                                                                                  
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Freight transportation rates for the Inland Waterways fluctuate
    from time to time and may decrease.                                                                                                                                                                          
|
| |  | An increase in barging capacity may lead to reductions in
    freight rates.                                                                                                                                                                                                     
|
| |  | Yields from North American and worldwide grain harvests could
    materially affect demand for our barging services.                                                                                                                                                             
|
| |  | Higher fuel prices, if not recouped from our customers, could
    increase operating expenses and adversely affect profitability.                                                                                                                                                
|
| |  | We are subject to adverse weather and river conditions,
    including hurricanes.                                                                                                                                                                                                
|
| |  | The inland barge transportation industry is highly competitive;
    increased competition could adversely affect us.                                                                                                                                                             
|
| |  | A portion of our barge fleet is near retirement, which, if not
    replaced, could adversely affect our revenue, earnings and cash
    flows.                                                                                                                                    
|
| |  | Our cash flows and borrowing facilities may not be adequate for
    our additional capital needs and, if we incur additional
    borrowings, our future cash flow and capital resources may not
    be sufficient for payments of interest and principal of our
    indebtedness.
|
| |  | Increases in prevailing interest rates would increase our
    interest payment obligations on the floating rate portion of our
    debt.                                                                                                                                         
|
| |  | There may be adverse consequences if the pending appeal of the
    confirmation of our Plan of Reorganization is successful.                                                                                                                                                     
|
| |  | Our barging services outside the United States subject us to
    changes in foreign economic and political conditions.                                                                                                                                                           
|
| |  | We are subject to fluctuations in foreign exchange rates and to
    foreign governmental restrictions on the repatriation of profits
    in U.S. dollars.                                                                                                                        
|
| |  | A disposition of our Venezuelan operations would affect earnings.                                                                                                                                                                                                                
|
| |  | The loss of one or more key customers, or material nonpayment or
    nonperformance by one or more of our key customers, could have a
    material adverse effect on our revenue and profitability.                                                                              
|
| |  | The loss of key personnel, including highly skilled and licensed
    vessel personnel, could adversely affect our business.                                                                                                                                                      

10-K


3



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PART I







|        |          
|------- | ---------
|ITEM 1. | BUSINESS.

The Company






Information Available on our Website


www.aclines.com 10-K, 10-Q, 8-K








| |   |                                    
| | - | -----------------------------------
| |  | Audit Committee                    
|
| |  | Compensation Committee             
|
| |  | Nominating and Governance Committee





| |   |                                
| | - | -------------------------------
| |  | Code of Ethics                 
|
| |  | Corporate Governance Guidelines

Business






RiverTrac




4



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|    |                                                                                                                               
|--- | ------------------------------------------------------------------------------------------------------------------------------
|(1) | Bulk includes fertilizers, salt, ores, ferro alloys, gypsum,
    cement, general construction materials and other commodities.



International Barge Transportation Operations. 10-year


Manufacturing.




5



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CUSTOMERS


Transportation Services.








Manufacturing.


CONTRACTS


Barge Transportation Services.






6



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Manufacturing.






TRANSPORTATION SERVICES FLEET


Domestic Transportation Services.


7



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Towboats.


International Transportation Services.


PORT SERVICES




THIRD-PARTY LOGISTICS AND INTERMODAL SERVICES








8



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TERMINALS




COMPETITION


Transportation.




| |   |                                                                            
| | - | ---------------------------------------------------------------------------
| |  | customer service;                                                          
|
| |  | available routes;                                                          
|
| |  | value-added services, including scheduling convenience and
    flexibility;
|
| |  | information timeliness; and                                                
|
| |  | equipment.                                                                 







9



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TOP 5 CARRIERS BY FLEET SIZE


(as of December 31, 2005)


|                                      |                             |       |       |          |        |  |       |       | 
|------------------------------------- | --------------------------- | ----- | ----- | -------- | ------ |  | ----- | ----- | 
|                                      |                             |       |       | % of     |       
|                                      |                             |       |       | Domestic |       
|                                      |                             | Units |       |          | Barges | 
|                                      |                             |       |       |          |        | 
|Dry Cargo Barges                      |                             |       |       |          |        |  |       |      
|Ingram Barge Company                  |                             |       | 3,716 |          |        |  | 20.9% |      
|American Commercial Barge Line LLC(1) |                             |       | 2,803 |          |        |  | 15.8% |      
|AEP/ MEMCO Barge Line, Inc.           |                             |       | 2,318 |          |        |  | 13.0% |      
|American River Transportation Company |                             |       | 2,076 |          |        |  | 11.7% |      
|Cargo Carriers                        |                             |       | 909   |          |        |  | 5.1%  |      
|                                      |                             |       |       |          |        | 
|                                      | Top 5 Dry Cargo Carriers    |       |       | 11,822   |        |  |       | 66.5% | 
|                                     
|Liquid Cargo Barges                   |                             |       |       |          |        |  |       |      
|Kirby Corporation                     |                             |       | 897   |          |        |  | 32.3% |      
|American Commercial Barge Line LLC(1) |                             |       | 371   |          |        |  | 13.3% |      
|Marathon Ashland Petroleum LLC        |                             |       | 170   |          |        |  | 6.1%  |      
|Canal Barge Company, Inc.             |                             |       | 169   |          |        |  | 6.1%  |      
|Ingram Barge Company                  |                             |       | 165   |          |        |  | 5.9%  |      
|                                      |                             |       |       |          |        | 
|                                      | Top 5 Liquid Cargo Carriers |       |       | 1,772    |        |  |       | 63.7% | 






|    |                                          
|--- | -----------------------------------------
|(1) | A wholly owned subsidiary of the Company.

Source:


Manufacturing.


SEASONALITY






10



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EMPLOYEE MATTERS


EMPLOYEE COUNT


|                                             |  |              |       |  |              |  |       | 
|-------------------------------------------- |  | ------------ | ----- |  | ------------ |  | ----- | 
|                                             |  | December 31, |       |  | December 31, | 
|Function                                     |  | 2005         |       |  | 2004         | 
|                                             |  |              |       |  |              | 
|Domestic administration (including Jeffboat) |  |              | 250   |  |              |  | 271   | 
|Domestic transportation services             |  |              | 1,380 |  |              |  | 1,439 | 
|Manufacturing                                |  |              | 881   |  |              |  | 790   | 
|International administration                 |  |              | 24    |  |              |  | 23    | 
|International transportation                 |  |              | 154   |  |              |  | 135   | 
|                                             |  |              |       |  |              | 
|TOTAL                                        |  |              | 2,689 |  |              |  | 2,658 | 
|                                             |  |              |       |  |              | 

Collective bargaining agreements.


INSURANCE AND RISK MANAGEMENT




11



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GOVERNMENT REGULATION


General.








Jones Act.




User Fees and Fuel Tax.




Homeland Security Requirements.


12



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ENVIRONMENTAL REGULATION










OCCUPATIONAL HEALTH AND SAFETY MATTERS






13



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INTELLECTUAL PROPERTY




BANKRUPTCY FILING & EMERGENCE










Material terms of the Plan of Reorganization.





ITEM 1A.  RISK FACTORS.




14



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RISKS RELATED TO OUR INDUSTRY




| |                                                                                                        
| | -------------------------------------------------------------------------------------------------------
| | Freight transportation rates for the Inland Waterways
    fluctuate from time to time and may decrease.





| |                                                                               
| | ------------------------------------------------------------------------------
| | An oversupply of barging capacity may lead to reductions
    in freight rates.





| |                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------
| | Yields from North American and worldwide grain harvests
    could materially affect demand for our barging services.





| |                                                                                                          
| | ---------------------------------------------------------------------------------------------------------
| | Diminishing demand for new barge construction may lead to
    a reduction in sales prices for new barges.





| |                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------
| | Higher fuel prices, if not recouped from our customers,
    could dramatically increase operating expenses and adversely
    affect profitability.



15



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| |                                                            
| | -----------------------------------------------------------
| | We are subject to adverse weather and river
    conditions.





| |                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------
| | Seasonal fluctuations in industry demand could adversely
    affect our operating results, cash flow and working capital
    requirements.





| |                                                                                                                    
| | -------------------------------------------------------------------------------------------------------------------
| | The aging infrastructure on the Inland Waterways may lead
    to increased costs and disruptions in our operations.





| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | The inland barge transportation industry is highly
    competitive; increased competition could adversely affect
    us.





| |                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Global trade agreements, tariffs and subsidies could
    decrease the demand for imported and exported goods, adversely
    affecting the flow of import and export tonnage through the Port
    of New Orleans and the demand for barging services.



16



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| |                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to comply with domestic or international
    government regulations affecting the domestic or foreign barging
    industries, or changes in these regulations, may cause us to
    incur significant expenses or affect our ability to
    operate.





| |                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Jones Act restricts foreign ownership of our stock,
    and the repeal, suspension or substantial amendment of the Jones
    Act could increase competition on the Inland Waterways and have
    a material adverse effect on our business.



U.S.-citizen


RISKS RELATED TO OUR BUSINESS




| |                                                                                             
| | --------------------------------------------------------------------------------------------
| | Our aging fleet of barges may lead to increased costs and
    disruptions in our operations.



17



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| |                                                                                                                                                                                                                                                                                              
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our cash flows and borrowing facilities may not be
    adequate for our additional capital needs and, if we incur
    additional borrowings, our future cash flow and capital
    resources may not be sufficient for payments of interest and
    principal of our substantial indebtedness.





| |                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------
| | There could be adverse consequences if the pending appeal
    of the confirmation of our Plan of Reorganization is
    successful.





| |                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------
| | Our barging services outside the United States subject us
    to changes in foreign economic and political conditions.



18



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| |                                                                      
| | ---------------------------------------------------------------------
| | A disposition of our Venezuelan operations would affect
    earnings.





| |                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The loss of one or more key customers, or material
    nonpayment or nonperformance by one or more of our key
    customers, would have a material adverse effect on our revenue
    and profitability.





| |                                                                                                      
| | -----------------------------------------------------------------------------------------------------
| | A major accident or casualty loss at any of our facilities
    could significantly reduce production.





| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | Our employees are covered by federal maritime laws that
    may subject us to job-related claims in addition to those
    provided by state laws.





| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We have experienced significant work stoppages by union
    employees in the past, and future work stoppages may disrupt our
    services and adversely affect our operations.



19



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| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | The loss of key personnel, including highly skilled and
    licensed vessel personnel, could adversely affect our
    business.





| |                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------
| | Failure to comply with environmental, health and safety
    regulations could result in substantial penalties and changes to
    our operations.









20



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| |                                                                                                                                                                                           
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our financial condition and results of operations will not
    be comparable to the financial condition or results of
    operations reflected in our historical financial
    statements.





| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | We are subject to, and may in the future be subject to,
    disputes, or legal or other proceedings that could involve
    significant expenditures by us.



Investor
confidence and the market price of our parents common
stock may be adversely impacted if we are unable to comply with
Section 404 of the
Sarbanes-Oxley Act of
2002.


Sarbanes-Oxley 10-K


21



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Sarbanes-Oxley




|         |                           
|-------- | --------------------------
|ITEM 1B. | UNRESOLVED STAFF COMMENTS.








|        |           
|------- | ----------
|ITEM 2. | PROPERTIES












| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Jeffboats shipbuilding facility in Jeffersonville, Indiana
    is a large single-site shipyard facility on the Inland
    Waterways, occupying approximately 86 acres of land and
    approximately 5,600 feet of frontage on the Ohio River.
    There are 38 buildings on the property comprising approximately
    305,000 square feet under roof. In addition, we lease
    storage facilities under leases expiring in 2015.                              
|
| |  | ACTs coal transfer terminal in St. Louis, Missouri
    occupies approximately 69 acres. There are six buildings on
    the property comprising approximately 21,000 square feet.
    In addition, we lease 2,400 feet of river frontage from the
    City of St. Louis under a lease expiring in 2010, and
    additional parcels of property from Burlington Northern under
    leases that either party can terminate with 30 days
    prior written notice.
|
| |  | LDCs fleet facility in Cairo, Illinois occupies
    approximately 37 acres, including approximately
    5,000 feet of river frontage. In addition, we lease
    approximately 22,000 feet of additional river frontage
    under various leases expiring between 2006 and 2013. This
    facility provides the base of operations for our barge fleeting
    and shifting, barge cleaning and repair and topside-towboat
    repair.                           



22



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| |   |                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------
| |  | Our corporate offices in Jeffersonville, Indiana occupy
    approximately 22 acres, comprising approximately
    165,000 square feet.








|        |                   
|------- | ------------------
|ITEM 3. | LEGAL PROCEEDINGS.



Current Legal Proceeding.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Miller Appeal. On January 19, 2005, MilFam II
    LP and Trust A-4, together referred to as the Miller
    Entities, holders of approximately $22 million in principal
    amount of PIK Notes, filed a notice of appeal, commencing an
    appeal to the United States District Court for the Southern
    District of Indiana (the District Court) of
    (1) the order of the U.S. Bankruptcy Court, Southern
    District of Indiana, New Albany Division (the Bankruptcy
    Court) entered on December 30, 2004 confirming the
    Plan of Reorganization (the Confirmation Order) and
    (2) the order of the Bankruptcy Court entered on
    January 12, 2005 denying the Miller Entities Motion
    For Reconsideration And To Open Record To Include Recent Senior
    Debt Trading Information. On February 17, 2005, the Miller
    Entities sought a limited stay of the Bankruptcy Courts
    Confirmation Order. On March 3, 2005, the Bankruptcy Court
    entered an order denying the Miller Entities request for a
    limited stay. The Confirmation Order remains in full force and
    effect.



| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | On January 31, 2005, the Miller Entities filed a statement
    of issues to be raised in the appeal to the District Court.
    These issues include, among others, that the enterprise value as
    of the effective date of the Plan of Reorganization
    (January 11, 2005) of the reorganized debtors of
    $500 million as determined by the Bankruptcy Court as part
    of the Confirmation Order is too low and was based on inaccurate
    and incomplete information; the Plan of Reorganization is not
    fair and equitable as to the Miller Entities and
    other holders of PIK Notes; the Miller Entities claims
    should not have been subordinated to the claims of holders of
    the 2008 Senior Notes as provided under the Plan of
    Reorganization; third-party releases provided by the
    Plan of Reorganization should not have been granted; the ballot
    cast by HY I to accept the Plan of Reorganization should be
    disregarded; and DHC should not have received any recovery under
    the Plan of Reorganization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|
| |  | The Miller Entities filed their Appellants Brief on
    March 10, 2005. On March 25, 2005, we filed the
    Appellees Brief and the Appellees Motion to Dismiss.
    In the Appellees Motion To Dismiss, we asserted that the
    appeal should be dismissed because, under principles sometimes
    referred to as equitable mootness, no relief may be
    equitably fashioned even if the Miller Entities raise a
    legitimate ground for reversal or modification of all or some
    part of the Confirmation Order. The Miller Entities filed their
    Response In Opposition To Appellees Motion to Dismiss on
    April 1, 2005 and their Appellants Reply Brief on
    April 4, 2005. On April 12, 2005, we filed the
    following: (i) Motion To Strike Declaration Of Tom
    Thompson; (ii) Brief In Support Of The Motion To Strike
    Declaration Of Tom Thompson; and (iii) Reply To Response Of
    Miller Entities Opposition To Motion To Dismiss. On
    April 21, 2004, the Miller Entities filed the Response By
    MilFam II LP And Trust A-4 In Opposition To
    Appellees Motion To Strike Declaration Of Tom Thompson and
    on May 2, 2005, we filed Appellees Reply Regarding
    Motion To Strike Declaration Of Tom Thompson. On May 11,
    2005, the Miller Entities filed the Response By MilFam II
    LP And Trust A-4 In Opposition To Appellees Second
    Motion To Strike Declaration Of Tom Thompson, and on
    June 21, 2005, they filed the Request By Miller Entities
    For Oral Argument. We filed

23



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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Appellees Response To Request For Oral Argument on
    June 28, 2005, and the Miller Entities filed the Reply By
    MilFam II LP And Trust A-4 To Appellees Response
    To Request For Oral Argument on July 8, 2005. On
    August 9, 2005, the Miller Entities filed an Emergency
    Motion for Expedited Consideration of Appeal, which was denied
    by the District Court on August 18, 2005. On
    October 31, 2005 and February 10, 2006, we filed two
    additional supplemental affidavits in support of our motion to
    dismiss. Those affidavits relate respectively to the
    consummation of the IPO and that completion of distribution of
    new shares under the Plan of Reorganization.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|
| |  | In several of the briefs and other pleadings filed with the
    District Court, the Miller Entities have stated that they seek a
    limited remedy and are not seeking to
    undo the Plan of Reorganization. The Miller Entities
    have asserted that they are seeking to recover a portion of the
    equity value of the reorganized debtors as of the effective date
    of the Plan of Reorganization that the Miller Entities contend
    has been or will be distributed in the form of new shares to
    holders of our 2008 Senior Notes and that should have instead
    been distributed to the holders of PIK Notes. Among the remedies
    that the Miller Entities argue should be implemented is the
    issuance to holders of PIK Notes of sufficient additional new
    shares so that the holders of the PIK Notes will realize the
    additional value that the Miller Entities assert the holders of
    PIK Notes are entitled, with the issuance of such additional new
    shares correspondingly diluting the value of new shares that
    were issued to holders of 2008 Senior Notes. The issuance of new
    shares could materially dilute the percentage of ownership of
    some or all of ACL Inc.s stockholders.
|
| |  | We intend to continue to oppose the appeal and to advocate that
    the appeal should be dismissed. However, we can make no
    assurance that the District Court (or the Seventh Circuit Court
    of Appeals or the United States Supreme Court, in the case of
    any further appeal) will dismiss the appeal, or that the
    ultimate outcome of this matter will not materially adversely
    affect either our ability to fully consummate our Plan of
    Reorganization as confirmed or the market value of our common
    stock and will not involve a material cost to us. Any such
    outcome could have a material adverse effect on our business,
    financial condition and results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

Environmental Litigation.




| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | SBA Shipyard, Jennings, Louisiana. SBA Shipyard is a
    remediation site that was operated by a third-party barge
    cleaning service provider utilized by National Marine, Inc., an
    entity whose assets were combined with ours in 1998. A
    potentially responsible party group of barge operators, which
    includes us, has been formed to coordinate final cleanup of this
    site. The removal action was completed pursuant to a work plan
    accepted by the U.S. Environmental Protection Agency
    (U.S. EPA) and on February 24, 2006, the
    U.S. EPA approved the final work plan for the site. As of
    December 31, 2005 we had expended approximately $710,000 in
    connection with this site. As of December 31, 2005, we had
    a reserve of approximately $930. No additional contributions are
    required or anticipated at this time.                                                                                                                                               
|
| |  | EPS, Marietta, Ohio. EPS, Inc., a wholly owned subsidiary
    of Vectura Group Inc., is the owner of Connex Pipe Systems
    closed solid waste landfill located in Marietta, Ohio
    (Connex). We assumed liability for the monitoring
    and potential cleanup of Connex (up to $30,000 per year)
    pursuant to our combination with Vectura Group in 1998. In 1986,
    Connex was subject to an Ohio consent judgment (Consent
    Judgment) under which it agreed to remediate and monitor
    the closed landfill for a period of three years. Connex complied
    with the Consent Judgment, and in 1994 the Ohio Environmental
    Protection Agency (Ohio EPA) issued a letter
    confirming Connexs compliance. In 1998, the Ohio EPA
    changed its regulations with respect to monitoring requirements
    to require longer monitoring periods for closed sites and sought
    to apply those new regulations to Connex retroactively. In
    November 1998, the Ohio EPA issued finalized guidance

24



---



##### 



| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | (Final Guidance) regarding retroactive application
    of the Ohio EPA requirements. We have requested written
    confirmation from the Ohio EPA that the new regulations do not
    retroactively apply and that our monitoring responsibilities
    with respect to the property have been fulfilled. Currently, we
    coordinate inspections of the property four times a year for
    integrity and maintenance of the cap with minimal associated
    cost. As of December 31, 2005, we had a reserve of
    approximately $31,400 in the event that future monitoring or
    testing of the site is required.                                                                                                                                                                                                                                                                      
|
| |  | Third Site, Zionsville, Indiana. Jeffboat LLC has been
    named a potentially responsible party at Third Site by the
    U.S. EPA. Third Site was utilized for the storage of
    hazardous substances and wastes during the remediation of the
    Environmental Conservation and Chemical Corporation and
    Northside Sanitary Landfill (ECC/ NSL) in
    Zionsville, Indiana. As a potentially responsible party at ECC/
    NSL, Jeffboat is responsible for 3.6% of the total volume of
    materials to be remediated at Third Site as well. Remediation
    activities are ongoing at Third Site, and, as of
    December 31, 2005, Jeffboat had contributed approximately
    $225,000 toward that remediation. No additional contributions
    are required or anticipated at this time, and therefore no
    additional environmental reserves have been made for this matter.
|
| |  | Barge Cleaning Facilities, Port Arthur, Texas. American
    Commercial Barge Line LLC received notices from the
    U.S. EPA in 1999 and 2004 that it is a potentially
    responsible party at the State Marine of Port Arthur and the
    Palmer Barge Line Superfund Sites in Port Arthur, Texas with
    respect to approximately 50 barges that were cleaned by State
    Marine and approximately five barges that were cleaned by Palmer
    Barge Line for us in the early 1980s. The U.S. EPA has made
    no assessments with respect to these sites.                                                                                                                                                                                                                                                                                                                              
|
| |  | Tiger Shipyard, Baton Rouge, Louisiana. At the direction
    of the State of Louisiana, we have participated in a cleanup of
    a former barge cleaning operation at this site involving the
    cleaning of approximately seven barges and the disposal of barge
    wash water. As of June 30, 2005, we had incurred costs of
    approximately $6.7 million in connection with this site.
    The barge cleaning activities are complete. As of
    December 31, 2005, we had a reserve of approximately $9,120
    in the event that the State of Louisiana requires future testing
    at the site or additional disposal efforts.                                                                                                                                                                                                                                                     
|
| |  | PHI/ Harahan Site, Harahan, Louisiana. We have been
    contacted by the State of Louisiana in connection with the
    investigation and cleanup of diesel and/or jet fuel in soil at
    this site. We believe contamination may have been caused by a
    tenant on the property and have so notified the regulatory
    authorities. On March 22, 2005, we submitted an
    investigation work plan for approval by the State of Louisiana.
    We do not know what level of fuel may be discovered in this
    investigation or whether cleanup will be required. We have paid
    approximately $20,000 in consultant fees related to
    investigation at this site. As of December 31, 2005, we had
    a reserve of approximately $2,000 in the event that future
    testing, clean-up or
    monitoring of the site is required.                                                   




PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|ITEM 5. | MARKET FOR REGISTRANTS COMMON EQUITY, RELATED
    STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
    SECURITIES.

Market Information









|        |                                                                  
|------- | -----------------------------------------------------------------
|ITEM 7. | MANAGEMENTS NARRATIVE AND ANALYSIS OF RESULTS OF
    OPERATIONS.

INTRODUCTION




25



---



##### 







| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Overview. This section provides a general description of
    the Company and its business, as well as developments the
    Company believes are important in understanding the results of
    operations and financial condition or in understanding
    anticipated future trends.                                                                                                                                                                                                                                                                                           
|
| |  | Results of Operations. This section provides an analysis
    of the Companys results of operations for the year ended
    December 31, 2005 compared to the results of operations for
    the year ended December 31, 2004 and an analysis of the
    Companys results of operations for the year ended
    December 31, 2004 compared to the results of operations for
    the year ended December 26, 2003.                                                                                                                                                               
|
| |  | Liquidity and Capital Resources. This section provides an
    overview of the Companys sources of liquidity, a
    discussion of the Companys debt that existed as of
    December 31, 2005 and an analysis of the Companys
    cash flows for the years ended December 31, 2005,
    December 31, 2004 and December 26, 2003. This section
    also provides information regarding certain contractual
    obligations and hedging activities.                                                                                                                            
|
| |  | Seasonality. This section describes the seasonality of
    our business.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|
| |  | Changes in Accounting Standards. This section describes
    certain changes in accounting and reporting standards applicable
    to the Company.                                                                                                                                                                                                                                                                                                                                                                                                                              
|
| |  | Critical Accounting Policies. This section describes
    accounting policies that are considered important to the
    Companys financial condition and results of operations,
    require significant judgment and require estimates on the part
    of management in application. The Companys significant
    accounting policies, including those considered to be critical
    accounting policies, are also summarized in note 1 to the
    accompanying consolidated financial statements.                                                                            
|
| |  | Quantitative and Qualitative Disclosures about Market
    Risk. This section describes exposure to potential loss
    arising from adverse changes in fuel prices, interest rates and
    foreign currency exchange rates.                                                                                                                                                                                                                                                                                                                                                    
|
| |  | Risk Factors and Caution Concerning Forward-Looking
    Statements. This section references important factors that
    could adversely affect the operations, business or financial
    results of the Company or its business segments and the use of
    forward-looking information appearing in this prospectus,
    including in this discussion and the consolidated financial
    statements. Such information is based on managements
    current expectations about future events, which are inherently
    susceptible to uncertainty and changes in circumstances.

OVERVIEW




| |             
| | ------------
| | Our Business





26



---



##### 



RiverTrac










| |            
| | -----------
| | Barge Fleet



|                                                        |  |     |       |   |        |  |     |       |  |  |       |  
|------------------------------------------------------- |  | --- | ----- | - | ------ |  | --- | ----- |  |  | ----- | -
|                                                        |  | Dry |       |   | Liquid |  |     | Total | 
|                                                        |  |     |       |   |        |  |     |       | 
|Fourth Quarter 2005                                     |  |     |       |   |        |  |     |       |  |  |       |  
|Barges operated as of the end of the third quarter 2005 |  |     | 2,817 |   |        |  | 373 |       |  |  | 3,190 |  
|Retired                                                 |  |     | (10   | ) |        |  | (1  | )     |  |  | (11   | )
|New builds                                              |  |     |      |   |        |  |    |       |  |  |      |  
|Change in number of barges leased                       |  |     | (4    | ) |        |  | (1  | )     |  |  | (5    | )
|                                                        |  |     |       |   |        |  |     |       | 
|                                                        |  |     | 2,803 |   |        |  | 371 |       |  |  | 3,174 |  
|                                                        |  |     |       |   |        |  |     |       | 

|                                      |  |     |       |   |        |  |     |       |  |  |       |  
|------------------------------------- |  | --- | ----- | - | ------ |  | --- | ----- |  |  | ----- | -
|                                      |  | Dry |       |   | Liquid |  |     | Total | 
|                                      |  |     |       |   |        |  |     |       | 
|Year 2005                             |  |     |       |   |        |  |     |       |  |  |       |  
|Barges operated as of the end of 2004 |  |     | 2,861 |   |        |  | 379 |       |  |  | 3,240 |  
|Retired                               |  |     | (51   | ) |        |  | (16 | )     |  |  | (67   | )
|Active barges sold                    |  |     |       |   |        |  | (7  | )     |  |  | (7    | )
|New builds                            |  |     |      |   |        |  | 16  |       |  |  | 16    |  
|Change in number of barges leased     |  |     | (7    | ) |        |  | (1  | )     |  |  | (8    | )
|                                      |  |     |       |   |        |  |     |       | 
|Barges operated as of the end of 2005 |  |     | 2,803 |   |        |  | 371 |       |  |  | 3,174 |  
|                                      |  |     |       |   |        |  |     |       | 



| |        
| | -------
| | Outlook

Transportation Services.


27



---



##### 



















28



---



##### 







Manufacturing.


29



---



##### 



RESULTS OF OPERATIONS




| |                                                                            
| | ---------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared with Year Ended
    December 31, 2004



OPERATING RESULTS BY BUSINESS SEGMENT


Year Ended December 31, 2005 as compared with Year Ended
December 31, 2004


|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |       |    |  |  |       |   
|-------------------------------------------------------------- |  | --------------------------------------------------------- | ------- | - | ------------ | - | -------- | ----------- |  | ------------ | -------- | - |  | ---- | ----- | -- |  |  | ----- | --
|                                                               |  |                                                           |         |   |              |   |          | % of        | 
|                                                               |  | Reorganized                                               |         |   | Predecessor  |   |          |             |  | Consolidated |         
|                                                               |  | Company                                                   |         |   | Company      |   |          |             |  | Revenue      |         
|                                                               |  | Year Ended                                                |         |   | Year Ended   |   |          | 2005 Better |  |              |          |  
|                                                               |  | December 31,                                              |         |   | December 31, |   |          | (Worse)     |  |              | Year     |   |  | Year |      
|                                                               |  | 2005                                                      |         |   | 2004         |   |          | Than 2004   |  |              | 2005     |   |  | 2004 |      
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|                                                               |  | (Dollars in thousands, except revenue per barge operated) |        
|REVENUE                                                        |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $                                                         | 588,060 |   |              | $ | 498,305  |             |  | $            | 89,755   |   |  |      | 79.3  | %  |  |  | 78.8  | % 
|International Transportation                                   |  |                                                           | 22,561  |   |              |   | 27,216   |             |  |              | (4,655   | ) |  |      | 3.0   | %  |  |  | 4.3   | % 
|Manufacturing                                                  |  |                                                           | 138,985 |   |              |   | 99,315   |             |  |              | 39,670   |   |  |      | 18.8  | %  |  |  | 15.7  | % 
|Other                                                          |  |                                                           | 10,008  |   |              |   | 8,789    |             |  |              | 1,219    |   |  |      | 1.4   | %  |  |  | 1.4   | % 
|Intersegment manufacturing elimination                         |  |                                                           | (18,244 | ) |              |   | (1,327   | )           |  |              | (16,917  | ) |  |      | (2.5  | )% |  |  | (0.2  | )%
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Consolidated Revenue                                           |  | $                                                         | 741,370 |   |              | $ | 632,298  |             |  | $            | 109,072  |   |  |      | 100.0 | %  |  |  | 100.0 | % 
|OPERATING EXPENSE                                              |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $                                                         | 542,867 |   |              | $ | 480,352  |             |  | $            | (62,515  | ) |  |      |       |    |  |  |       |   
|International Transportation                                   |  |                                                           | 19,300  |   |              |   | 22,885   |             |  |              | 3,585    |   |  |      |       |    |  |  |       |   
|Manufacturing                                                  |  |                                                           | 131,782 |   |              |   | 96,426   |             |  |              | (35,356  | ) |  |      |       |    |  |  |       |   
|Other                                                          |  |                                                           | 8,117   |   |              |   | 8,603    |             |  |              | 486      |   |  |      |       |    |  |  |       |   
|Intersegment manufacturing elimination                         |  |                                                           | (16,798 | ) |              |   | (1,327   | )           |  |              | 15,471   |   |  |      |       |    |  |  |       |   
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Consolidated Operating Expense                                 |  | $                                                         | 685,268 |   |              | $ | 606,939  |             |  | $            | (78,329  | ) |  |      | 92.4  | %  |  |  | 96.0  | % 
|OPERATING INCOME                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $                                                         | 45,193  |   |              | $ | 17,953   |             |  | $            | 27,240   |   |  |      |       |    |  |  |       |   
|International Transportation                                   |  |                                                           | 3,261   |   |              |   | 4,331    |             |  |              | (1,070   | ) |  |      |       |    |  |  |       |   
|Manufacturing                                                  |  |                                                           | 7,203   |   |              |   | 2,889    |             |  |              | 4,314    |   |  |      |       |    |  |  |       |   
|Other                                                          |  |                                                           | 1,891   |   |              |   | 186      |             |  |              | 1,705    |   |  |      |       |    |  |  |       |   
|Intersegment manufacturing elimination                         |  |                                                           | (1,446  | ) |              |   |         |             |  |              | (1,446   | ) |  |      |       |    |  |  |       |   
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Consolidated Operating Income                                  |  | $                                                         | 56,102  |   |              | $ | 25,359   |             |  | $            | 30,743   |   |  |      | 7.6   | %  |  |  | 4.0   | % 
|Interest Expense                                               |  |                                                           | 43,322  |   |              |   | 39,023   |             |  |              | (4,299   | ) |  |      |       |    |  |  |       |   
|Other Expense (Income)                                         |  |                                                           | (6,763  | ) |              |   | (4,438   | )           |  |              | 2,325    |   |  |      |       |    |  |  |       |   
|Reorganization Items                                           |  |                                                           |        |   |              |   | 56,921   |             |  |              | 56,921   |   |  |      |       |    |  |  |       |   
|Fresh Start Adjustments                                        |  |                                                           |        |   |              |   | 83,030   |             |  |              | 83,030   |   |  |      |       |    |  |  |       |   
|Gain on Discharge of Debt                                      |  |                                                           |        |   |              |   | (155,358 | )           |  |              | (155,358 | ) |  |      |       |    |  |  |       |   
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Income before Income Taxes                                     |  | $                                                         | 19,543  |   |              | $ | 6,181    |             |  | $            | 13,362   |   |  |      |       |    |  |  |       |   
|Income Taxes                                                   |  |                                                           | 7,730   |   |              |   | 1,787    |             |  |              | (5,943   | ) |  |      |       |    |  |  |       |   
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Net Income                                                     |  | $                                                         | 11,813  |   |              | $ | 4,394    |             |  | $            | 7,419    |   |  |      |       |    |  |  |       |   
|                                                               |  |                                                           |         |   |              |   |          |             |  |              |          |   |  |      |      
|Domestic Barges Operated (average of period beginning and end) |  |                                                           | 3,207   |   |              |   | 3,391    |             |  |              | (184     | ) |  |      |       |    |  |  |       |   
|Domestic Transportation Revenue per Barge Operated             |  | $                                                         | 183,368 |   |              | $ | 146,949  |             |  | $            | 36,419   |   |  |      |       |    |  |  |       |   

30



---



##### 



Revenue.


|                                             |  |               |         |  
|-------------------------------------------- |  | ------------- | ------- | -
|                                             |  | ($ Thousands) |        
|Domestic Transportation Revenue              |  |               |         |  
|Higher Barge Freight Rates                   |  | $             | 114,925 |  
|Lower Barge Transport Volume                 |  |               | (15,002 | )
|Lower Revenue from Barge Scrapping Operation |  |               | (10,968 | )
|Other Variances                              |  |               | 800     |  
|                                             |  |               |        
|Total                                        |  | $             | 89,755  |  
|International Transportation Revenue         |  |               |         |  
|Lower Charter Revenue                        |  | $             | (3,135  | )
|Lower Venezuela Volume                       |  |               | (1,741  | )
|Higher Dominican Republic Volume             |  |               | 221     |  
|                                             |  |               |        
|Total                                        |  | $             | (4,655  | )
|Manufacturing Revenue                        |  |               |         |  
|Higher Third-party Tank Barge Sales          |  |               | 41,172  |  
|Higher Interco Tank Barge Sales              |  |               | 16,859  |  
|Lower Third Party Dry Cargo Barge Sales      |  |               | (18,361 | )
|                                             |  |               |        
|Total                                        |  | $             | 39,670  |  
|Eliminate Intersegment Manufacturing         |  |               | (16,917 | )
|Other Segment Variance                       |  |               | 1,219   |  
|                                             |  |               |        
|Consolidated Total                           |  | $             | 109,072 |  
|                                             |  |               |        







31



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##### 





Operating Expense.


|                                             |  |               |         |  
|-------------------------------------------- |  | ------------- | ------- | -
|                                             |  | ($ Thousands) |        
|Domestic Transportation Expense              |  |               |         |  
|Higher Diesel Fuel Prices                    |  |               | (43,480 | )
|Higher SG&A Expense                          |  |               | (15,388 | )
|Higher Materials, Supplies and Other Expense |  |               | (12,708 | )
|Higher Labor and Fringe Benefit Expense      |  |               | (2,949  | )
|Lower Diesel Fuel Consumption                |  |               | 5,926   |  
|Lower Fuel User Tax                          |  |               | 2,017   |  
|Lower Rent Expense                           |  |               | 1,727   |  
|Lower Depreciation                           |  |               | 2,066   |  
|Other variance                               |  |               | 274     |  
|                                             |  |               |        
|Total                                        |  | $             | (62,515 | )
|International Transportation Expense         |  |               |         |  
|Elimination of Crewing Fees in Argentina     |  | $             | 3,083   |  
|Lower Volume                                 |  |               | 502     |  
|                                             |  |               |        
|Total                                        |  | $             | 3,585   |  
|Manufacturing Expense                        |  |               |         |  
|Higher Manufacturing Volume                  |  | $             | (35,356 | )
|Eliminate Intersegment Manufacturing         |  | $             | 15,471  |  
|Other Segment Variance                       |  | $             | 486     |  
|                                             |  |               |        
|Consolidated Total                           |  | $             | (78,329 | )
|                                             |  |               |        



32



---



##### 







Interest Expense.


Other Income.


Reorganization Items.


Fresh Start Adjustments.


Gain on Discharge of Debt.


Income Tax Expense.


Net Income.


33



---



##### 



Year Ended December 31,
2004 Compared with Year Ended December 26, 2003


OPERATING RESULTS by BUSINESS SEGMENT


(PREDECESSOR COMPANY)


2004 as compared with 2003


(Dollars in thousands, except revenue per barge operated)


|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |       |    |  |  |       |   
|-------------------------------------------------------------- |  | ------------ | -------- | - | ------------ | - | ------- | ----------- |  | ------------ | -------- | - |  | ---- | ----- | -- |  |  | ----- | --
|                                                               |  |              |          |   |              |   |         | % of        | 
|                                                               |  | Fiscal Year  |          |   | Fiscal Year  |   |         |             |  | Consolidated |         
|                                                               |  | Ended        |          |   | Ended        |   |         | 2004 Better |  |              | Revenue  |  
|                                                               |  | December 31, |          |   | December 26, |   |         | (Worse)     |  |              |          |  
|                                                               |  | 2004         |          |   | 2003         |   |         | Than 2003   |  |              | 2004     |   |  | 2003 |      
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|REVENUE                                                        |  |              |          |   |              |   |         |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $            | 498,305  |   |              | $ | 508,297 |             |  | $            | (9,992   | ) |  |      | 78.8  | %  |  |  | 82.0  | % 
|International Transportation                                   |  |              | 27,216   |   |              |   | 34,467  |             |  |              | (7,251   | ) |  |      | 4.3   | %  |  |  | 5.6   | % 
|Manufacturing                                                  |  |              | 99,315   |   |              |   | 71,752  |             |  |              | 27,563   |   |  |      | 15.7  | %  |  |  | 11.5  | % 
|Other                                                          |  |              | 8,789    |   |              |   | 7,099   |             |  |              | 1,690    |   |  |      | 1.4   | %  |  |  | 1.1   | % 
|Intersegment manufacturing elimination                         |  |              | (1,327   | ) |              |   | (1,544  | )           |  |              | 217      |   |  |      | (0.2  | )% |  |  | (0.2  | )%
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|Consolidated Revenue                                           |  | $            | 632,298  |   |              | $ | 620,071 |             |  | $            | 12,227   |   |  |      | 100.0 | %  |  |  | 100.0 | % 
|OPERATING EXPENSE                                              |  |              |          |   |              |   |         |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $            | 480,352  |   |              | $ | 510,521 |             |  | $            | 30,169   |   |  |      |       |    |  |  |       |   
|International Transportation                                   |  |              | 22,885   |   |              |   | 30,876  |             |  |              | 7,991    |   |  |      |       |    |  |  |       |   
|Manufacturing                                                  |  |              | 96,426   |   |              |   | 72,562  |             |  |              | (23,864  | ) |  |      |       |    |  |  |       |   
|Other                                                          |  |              | 8,603    |   |              |   | 7,576   |             |  |              | (1,027   | ) |  |      |       |    |  |  |       |   
|Intersegment manufacturing elimination                         |  |              | (1,327   | ) |              |   | (1,544  | )           |  |              | (217     | ) |  |      |       |    |  |  |       |   
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|Consolidated Operating Expense                                 |  | $            | 606,939  |   |              | $ | 619,991 |             |  | $            | 13,052   |   |  |      | 96.0  | %  |  |  | 100.0 | % 
|OPERATING INCOME                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |       |    |  |  |       |   
|Domestic Transportation                                        |  | $            | 17,953   |   |              | $ | (2,224  | )           |  | $            | 20,177   |   |  |      |       |    |  |  |       |   
|International Transportation                                   |  |              | 4,331    |   |              |   | 3,591   |             |  |              | 740      |   |  |      |       |    |  |  |       |   
|Manufacturing                                                  |  |              | 2,889    |   |              |   | (810    | )           |  |              | 3,699    |   |  |      |       |    |  |  |       |   
|Other                                                          |  |              | 186      |   |              |   | (477    | )           |  |              | 663      |   |  |      |       |    |  |  |       |   
|Consolidated Operating Income                                  |  | $            | 25,359   |   |              | $ | 80      |             |  | $            | 25,279   |   |  |      | 4.0   | %  |  |  | 0.0   | % 
|Interest Expense                                               |  |              | 39,023   |   |              |   | 41,514  |             |  |              | 2,491    |   |  |      |       |    |  |  |       |   
|Other Expense (Income)                                         |  |              | (4,438   | ) |              |   | (6,303  | )           |  |              | (1,865   | ) |  |      |       |    |  |  |       |   
|Reorganization Items                                           |  |              | 56,921   |   |              |   | 24,344  |             |  |              | (32,577  | ) |  |      |       |    |  |  |       |   
|Fresh Start Adjustments                                        |  |              | 83,030   |   |              |   |        |             |  |              | (83,030  | ) |  |      |       |    |  |  |       |   
|Gain on Discharge of Debt                                      |  |              | (155,358 | ) |              |   |        |             |  |              | (155,358 | ) |  |      |       |    |  |  |       |   
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|Income (Loss) before Income Taxes                              |  | $            | 6,181    |   |              | $ | (59,475 | )           |  | $            | (89,702  | ) |  |      |       |    |  |  |       |   
|Income Taxes                                                   |  |              | 1,787    |   |              |   | 2,101   |             |  |              | 314      |   |  |      |       |    |  |  |       |   
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|Net Income (Loss)                                              |  | $            | 4,394    |   |              | $ | (61,576 | )           |  | $            | 65,970   |   |  |      |       |    |  |  |       |   
|                                                               |  |              |          |   |              |   |         |             |  |              |          |   |  |      |      
|Domestic barges operated (average of period beginning and end) |  |              | 3,391    |   |              |   | 4,061   |             |  |              | (670     | ) |  |      |       |    |  |  |       |   
|Domestic Transportation revenue per barge operated             |  | $            | 146,949  |   |              | $ | 125,165 |             |  | $            | 21,784   |   |  |      |       |    |  |  |       |   

34



---



##### 



Revenue.


|                                               |  |               |         |  
|---------------------------------------------- |  | ------------- | ------- | -
|                                               |  | ($ Thousands) |        
|                                               |  |               |        
|Domestic Transportation Revenue                |  |               |         |  
|Lower Barge Transport Volume  All commodities |  | $             | (48,094 | )
|Higher Barge Freight Rates                     |  |               | 26,204  |  
|Higher Revenue from Barge Scrapping Operation  |  |               | 13,393  |  
|Other Variances                                |  |               | (1,495  | )
|                                               |  |               |        
|Total                                          |  | $             | (9,992  | )
|International Transportation Revenue           |  |               |         |  
|Lower Charter Revenue                          |  | $             | (6,990  | )
|Lower Dominican Republic Volume                |  |               | (387    | )
|Higher Venezuela Volume                        |  |               | 126     |  
|                                               |  |               |        
|Total                                          |  | $             | (7,251  | )
|Manufacturing Revenue                          |  |               |         |  
|Higher Third-party Barge Sales                 |  | $             | 21,463  |  
|Higher Sales Prices driven by Steel Price      |  |               | 6,515   |  
|Lower Marine Repair Revenue                    |  |               | (415    | )
|                                               |  |               |        
|Total                                          |  | $             | 27,563  |  
|Eliminate Intersegment Manufacturing           |  | $             | 217     |  
|Other Segment Variance                         |  | $             | 1,690   |  
|                                               |  |               |        
|Consolidated Total                             |  | $             | 12,227  |  
|                                               |  |               |        







35



---



##### 







Operating Expense.


|                                               |  |               |         |  
|---------------------------------------------- |  | ------------- | ------- | -
|                                               |  | ($ Thousands) |        
|                                               |  |               |        
|Domestic Transportation Expense                |  |               |         |  
|Lower Labor and Fringe Benefit Expense         |  | $             | 13,910  |  
|Lower Rent Expense                             |  |               | 13,828  |  
|Lower Fuel Volume                              |  |               | 8,305   |  
|Lower Materials, Supplies and Other Expense    |  |               | 7,177   |  
|Lower Fuel User Tax                            |  |               | 1,928   |  
|Higher Diesel Fuel Prices                      |  |               | (14,812 | )
|Higher Depreciation and Amortization           |  |               | (529    | )
|Other variance                                 |  |               | 362     |  
|                                               |  |               |        
|Total                                          |  | $             | 30,169  |  
|International Transportation Expense           |  |               |         |  
|Elimination of Crewing Fees in Argentina       |  | $             | 5,073   |  
|Lower Depreciation and Other Cost in Argentina |  |               | 1,864   |  
|Lower Venezuela Expenses                       |  |               | 950     |  
|Lower Dominican Republic Volume                |  |               | 104     |  
|                                               |  |               |        
|Total                                          |  | $             | 7,991   |  
|Manufacturing Expense                          |  |               |         |  
|Higher Manufacturing Volume and Costs          |  | $             | (23,864 | )
|Eliminate Intersegment Manufacturing           |  | $             | (217    | )
|Other Segment Variance                         |  | $             | (1,027  | )
|                                               |  |               |        
|Consolidated Total                             |  | $             | 13,052  |  
|                                               |  |               |        







36



---



##### 



Interest Expense. debtor-in


Other Income.


Reorganization Items.


Fresh Start Adjustments.


Gain on Discharge of Debt.


Income Tax Expense.


Net Income (Loss).


LIQUIDITY AND CAPITAL RESOURCES








37



---



##### 







| |                                             
| | --------------------------------------------
| | Our Indebtedness and Financial Restructuring





debtor-in




38



---



##### 













39



---



##### 











| |                                             
| | --------------------------------------------
| | Net Cash, Capital Expenditures and Cash Flow







construction-in


40



---



##### 











| |                                                              
| | -------------------------------------------------------------
| | Contractual Obligations and Commercial Commitment
    Summary



|                                                      |                      |                      |       |           |          |   |        |             |  |         |            |   |            |       |      |      |  |   |       |       | 
|----------------------------------------------------- | -------------------- | -------------------- | ----- | --------- | -------- | - | ------ | ----------- |  | ------- | ---------- | - | ---------- | ----- | ---- | ---- |  | - | ----- | ----- | 
|                                                      |                      | Payments Due by Year |      
|                                                      |                      |                      |      
|                                                      |                      |                      |       | Less Than |          |   | One to |             |  | Four to |            |   | After Five |      
|Contractual Obligations                               |                      | Total                |       |           | One Year |   |        | Three Years |  |         | Five Years |   |            | Years |     
|                                                      |                      |                      |       |           |          |   |        |             |  |         |            |   |            |       |     
|                                                      |                      | (In millions)        |      
|Long-term debt obligations(1)                         |                      |                      |       |           |          |   |        |             |  |         |            |   |            |       |      |      |  |   |       |      
|                                                      | 2015 Senior Notes    |                      | $     | 130.0     |          |   | $      |            |  |         | $          |  |            |       | $    |     |  |   | $     | 130.0 | 
|                                                      | Asset based revolver |                      |       | 70.0      |          |   |        |            |  |         |            |  |            |       |      | 70.0 |  |   |       |      | 
|Capital lease obligations(2)                          |                      |                      | 0.7   |           |          |   | 0.5    |             |  |         | 0.2        |   |            |       |     |      |  |   |      |      
|Operating lease obligations(3)                        |                      |                      | 133.1 |           |          |   | 20.9   |             |  |         | 34.7       |   |            |       | 26.9 |      |  |   | 50.6  |      
|Other reorganization-related liabilities(4)           |                      |                      | 2.7   |           |          |   | 2.7    |             |  |         |           |   |            |       |     |      |  |   |      |      
|                                                      |                      |                      |       |           |          |   |        |             |  |         |            |   |            |       |     
|Total contractual cash obligations                    |                      | $                    | 336.5 |           |          | $ | 24.1   |             |  | $       | 34.9       |   |            | $     | 96.9 |      |  | $ | 180.6 |      
|                                                      |                      |                      |       |           |          |   |        |             |  |         |            |   |            |       |     
|Estimated interest on contractual debt obligations(5) |                      | $                    | 132.8 |           |          | $ | 16.6   |             |  | $       | 33.1       |   |            | $     | 32.2 |      |  | $ | 50.9  |      






|    |                                                                                                                                                                                                                                                                            
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the principal amounts due on outstanding debt
    obligations, current and long-term, as of December 31,
    2005. Amounts do not include interest payments.                                                                                                    
|   
|(2) | Represents the minimum capital lease payments under
    non-cancelable leases, primarily for four harbor tugs. Includes
    interest.                                                                                                                                      
|   
|(3) | Represents the minimum lease rental payments under
    non-cancelable leases, primarily for vessels and land.                                                                                                                                                              
|   
|(4) | Consists of estimated and accrued obligations of approximately
    $0.4 million in professional fees for services performed in
    connection with the First Amended Joint Plan of Reorganization
    and $2.3 million in contract cure payments and other
    settlements.
|   
|(5) | All interest expense calculations begin January 1, 2006 and
    end on the respective maturity dates. The LIBOR rates are the
    rates in effect as of January 1, 2006.                                                                                                   

41



---



##### 





|                      |                    |              |       |      |        |  |        |          |  |  |         |          |  |  |          |          | 
|--------------------- | ------------------ | ------------ | ----- | ---- | ------ |  | ------ | -------- |  |  | ------- | -------- |  |  | -------- | -------- | 
|                      |                    | Principal at |       |      | Period |  |        |         
|                      |                    | December 31, |       |      |        |  |        | Interest | 
|Obligation            |                    | 2005         |       |      | From   |  |        | To       |  |  | Rate    |         
|                      |                    |              |       |      |        |  |        |          |  |  |         |         
|2015 Senior Notes     |                    | $            | 130.0 |      |        |  | 1/1/06 |          |  |  | 2/15/15 |          |  |  | 9.50000% |         
|Asset Based Revolver: |                    |              |       |      |        |  |        |          |  |  |         |          |  |  |          |         
|                      | 6 Month LIBOR Loan |              |       | 55.0 |        |  |        | 1/1/06   |  |  |         | 10/13/10 |  |  |          | 5.77688% | 
|                      | 3 Month LIBOR Loan |              |       | 15.0 |        |  |        | 1/1/06   |  |  |         | 10/13/10 |  |  |          | 5.94000% | 
|                      |                    |              |       |      |        |  |        |          |  |  |         |         
|                      |                    |              | 70.0  |      |        |  |        |          |  |  |         |          |  |  |          |         







| |             
| | ------------
| | Fuel Hedging





|                                                             |  |               |       |  
|------------------------------------------------------------ |  | ------------- | ----- | -
|                                                             |  | (In millions) |      
|Fair value of contracts outstanding at the beginning of 2005 |  | $             | 0.41  |  
|Contracts realized or otherwise settled during 2005          |  |               | (0.41 | )
|Fair value of new contracts when entered into during 2005    |  |               | 0.00  |  
|Other changes in fair value                                  |  |               | 0.00  |  
|                                                             |  |               |      
|Fair value of contracts outstanding at December 31, 2005     |  | $             | 0.00  |  
|                                                             |  |               |      

SEASONALITY




CHANGES IN ACCOUNTING STANDARDS




42



---



##### 



paid-in


109-2).




CRITICAL ACCOUNTING POLICIES








| |                    
| | -------------------
| | Revenue Recognition



43



---



##### 



















| |                                                            
| | -----------------------------------------------------------
| | Expense Estimates for Harbor and Towing Service
    Charges





| |                                 
| | --------------------------------
| | Insurance Claim Loss Deductibles





| |                       
| | ----------------------
| | Employee Benefit Plans



44



---



##### 









| |                                
| | -------------------------------
| | Impairment of Long-Lived Assets





| |                                         
| | ----------------------------------------
| | Assets and Asset Capitalization Policies







RISK FACTORS AND FORWARD-LOOKING STATEMENTS




45



---



##### 





10-K







|         |                                                                
|-------- | ---------------------------------------------------------------
|ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISK.



Fuel Price Risk






| |                              
| | -----------------------------
| | Interest Rate and Other Risks





| |                                     
| | ------------------------------------
| | Foreign Currency Exchange Rate Risks



46



---



##### 








|        |                                             
|------- | --------------------------------------------
|ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.



Report of Independent Registered Public Accounting Firm














/s/ ERNST & YOUNG, LLP


Louisville, Kentucky


February 17, 2006


47



---



##### 



AMERICAN BARGE LINE COMPANY


CONSOLIDATED STATEMENTS OF OPERATIONS


|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |         |   |         |         |         | 
|----------------------------------------------------------------------------------------------------------- | --------------------------------- | --------------------------------------------------- | ------- | ------- | ------------------- | - | -------- | ----------------- | ------- | - | ------- | ------- | ------- | 
|                                                                                                            |                                   | Reorganized                                         |         |         |                    
|                                                                                                            |                                   | Company                                             |         |         | Predecessor Company |  
|                                                                                                            |                                   |                                                     |         |         |                     |  
|                                                                                                            |                                   | Fiscal Year Ended                                   |         |         | Fiscal Year Ended   |   |          | Fiscal Year Ended |        
|                                                                                                            |                                   | December 31,                                        |         |         | December 31,        |   |          | December 26,      |        
|                                                                                                            |                                   | 2005                                                |         |         | 2004                |   |          | 2003              |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|                                                                                                            |                                   | (In thousands, except shares and per share amounts) |        
|REVENUE                                                                                                     |                                   | $                                                   | 741,370 |         |                     | $ | 632,298  |                   |         | $ | 620,071 |        
|OPERATING EXPENSE                                                                                           |                                   |                                                     |         |         |                     |   |          |                   |         |   |         |        
|                                                                                                            | Materials, Supplies and Other     |                                                     |         | 291,002 |                     |   |          | 265,950           |         |   |         | 260,078 |        
|                                                                                                            | Rent                              |                                                     |         | 21,797  |                     |   |          | 23,768            |         |   |         | 36,608  |        
|                                                                                                            | Labor and Fringe Benefits         |                                                     |         | 126,337 |                     |   |          | 117,419           |         |   |         | 121,628 |        
|                                                                                                            | Fuel                              |                                                     |         | 127,314 |                     |   |          | 89,843            |         |   |         | 83,427  |        
|                                                                                                            | Depreciation and Amortization     |                                                     |         | 49,121  |                     |   |          | 53,175            |         |   |         | 54,918  |        
|                                                                                                            | Taxes, Other Than Income Taxes    |                                                     |         | 16,964  |                     |   |          | 19,352            |         |   |         | 21,862  |        
|                                                                                                            | Selling, General & Administrative |                                                     |         | 52,733  |                     |   |          | 37,432            |         |   |         | 41,470  |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|                                                                                                            |                                   | Total Operating Expenses                            |         |         | 685,268             |   |          |                   | 606,939 |   |         |         | 619,991 | 
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|OPERATING INCOME                                                                                            |                                   |                                                     | 56,102  |         |                     |   | 25,359   |                   |         |   | 80      |        
|OTHER EXPENSE (INCOME)                                                                                      |                                   |                                                     |         |         |                     |   |          |                   |         |   |         |        
|                                                                                                            | Interest Expense                  |                                                     |         | 43,322  |                     |   |          | 39,023            |         |   |         | 41,514  |        
|                                                                                                            | Other, Net                        |                                                     |         | (6,763  | )                   |   |          | (4,438            | )       |   |         | (6,303  | )      
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|                                                                                                            |                                   |                                                     | 36,559  |         |                     |   | 34,585   |                   |         |   | 35,211  |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|INCOME (LOSS) BEFORE REORGANIZATION ITEMS, FRESH START
    ADJUSTMENTS, INCOME TAXES AND EXTRAORDINARY ITEM |                                   |                                                     | 19,543  |         |                     |   | (9,226   | )                 |         |   | (35,131 | )      
|REORGANIZATION ITEMS                                                                                        |                                   |                                                     |        |         |                     |   | 56,921   |                   |         |   | 24,344  |        
|FRESH START ADJUSTMENTS                                                                                     |                                   |                                                     |        |         |                     |   | 83,030   |                   |         |   |        |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY ITEM                                                    |                                   |                                                     | 19,543  |         |                     |   | (149,177 | )                 |         |   | (59,475 | )      
|INCOME TAXES                                                                                                |                                   |                                                     | 7,730   |         |                     |   | 1,787    |                   |         |   | 2,101   |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|INCOME (LOSS) BEFORE EXTRAORDINARY ITEM                                                                     |                                   |                                                     | 11,813  |         |                     |   | (150,964 | )                 |         |   | (61,576 | )      
|EXTRAORDINARY ITEM  GAIN ON DISCHARGE OF DEBT                                                              |                                   |                                                     |        |         |                     |   | 155,358  |                   |         |   |        |        
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        
|NET INCOME (LOSS)                                                                                           |                                   | $                                                   | 11,813  |         |                     | $ | 4,394    |                   |         | $ | (61,576 | )      
|                                                                                                            |                                   |                                                     |         |         |                     |   |          |                   |        



48



---



##### 



AMERICAN BARGE LINE COMPANY


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION


|                                                                                                       |                                        |                                            |         |         |              |  |         |         |         | 
|------------------------------------------------------------------------------------------------------ | -------------------------------------- | ------------------------------------------ | ------- | ------- | ------------ |  | ------- | ------- | ------- | 
|                                                                                                       |                                        | Reorganized Company                        |        
|                                                                                                       |                                        |                                            |        
|                                                                                                       |                                        | December 31,                               |         |         | December 31, | 
|                                                                                                       |                                        | 2005                                       |         |         | 2004         | 
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | (In thousands, except shares               |        
|                                                                                                       |                                        | and per share amounts)                     |        
|ASSETS                                                                                                
|CURRENT ASSETS                                                                                         |                                        |                                            |         |         |              |  |         |        
|                                                                                                       | Cash and Cash Equivalents              |                                            | $       | 13,959  |              |  | $       | 46,645  |        
|                                                                                                       | Cash, Restricted                       |                                            |         |        |              |  |         | 9,182   |        
|                                                                                                       | Accounts Receivable, Net               |                                            |         | 96,526  |              |  |         | 77,997  |        
|                                                                                                       | Materials and Supplies                 |                                            |         | 44,976  |              |  |         | 46,357  |        
|                                                                                                       | Deferred Tax Asset                     |                                            |         | 4,644   |              |  |         | 3,916   |        
|                                                                                                       | Other Current Assets                   |                                            |         | 16,787  |              |  |         | 21,589  |        
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Current Assets                       |         |         | 176,892      |  |         |         | 205,686 | 
|PROPERTIES-NET                                                                                         |                                        |                                            | 425,741 |         |              |  | 436,682 |        
|PENSION ASSET                                                                                          |                                        |                                            |        |         |              |  | 15,638  |        
|INVESTMENT IN EQUITY INVESTEES                                                                         |                                        |                                            | 5,532   |         |              |  | 4,396   |        
|OTHER ASSETS                                                                                           |                                        |                                            | 15,119  |         |              |  | 5,275   |        
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Assets                               |         | $       | 623,284      |  |         | $       | 667,677 | 
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                      
|LIABILITIES                                                                                           
|CURRENT LIABILITIES                                                                                    |                                        |                                            |         |         |              |  |         |        
|                                                                                                       | Accounts Payable                       |                                            | $       | 47,517  |              |  | $       | 25,461  |        
|                                                                                                       | Accrued Payroll and Fringe Benefits    |                                            |         | 22,303  |              |  |         | 16,745  |        
|                                                                                                       | Deferred Revenue                       |                                            |         | 16,631  |              |  |         | 13,760  |        
|                                                                                                       | Accrued Claims and Insurance Premiums  |                                            |         | 13,361  |              |  |         | 13,127  |        
|                                                                                                       | Accrued Interest                       |                                            |         | 5,179   |              |  |         | 1,273   |        
|                                                                                                       | Current Portion of Long-Term Debt      |                                            |         |        |              |  |         | 2,887   |        
|                                                                                                       | Accrued Reorganization Claims and Fees |                                            |         | 2,724   |              |  |         | 15,603  |        
|                                                                                                       | Other Liabilities                      |                                            |         | 22,973  |              |  |         | 24,940  |        
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Current Liabilities                  |         |         | 130,688      |  |         |         | 113,796 | 
|LONG-TERM DEBT                                                                                         |                                        |                                            | 200,000 |         |              |  | 403,546 |        
|PENSION LIABILITY                                                                                      |                                        |                                            | 17,867  |         |              |  | 22,120  |        
|DEFERRED TAX LIABILITY, NET                                                                            |                                        |                                            | 4,644   |         |              |  | 8,996   |        
|OTHER LONG-TERM LIABILITIES                                                                            |                                        |                                            | 16,384  |         |              |  | 19,121  |        
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Liabilities                          |         |         | 369,583      |  |         |         | 567,579 | 
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                      
|STOCKHOLDERS EQUITY                                                                                  
|Common stock; authorized 1,000 shares at $.01 par
    value; 10 shares issued and outstanding, in 2005 |                                        |                                            |        |         |              |  |        |        
|                                                                                                       | Other Capital                          |                                            |         | 251,237 |              |  |         | 100,098 |        
|                                                                                                       | Unearned Compensation                  |                                            |         | (3,495  | )            |  |         |        |        
|                                                                                                       | Retained Earnings                      |                                            |         | 11,813  |              |  |         |        |        
|                                                                                                       | Accumulated Other Comprehensive Loss   |                                            |         | (5,854  | )            |  |         |        |        
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Stockholders Equity                 |         |         | 253,701      |  |         |         | 100,098 | 
|                                                                                                       |                                        |                                            |         |         |              | 
|                                                                                                       |                                        | Total Liabilities and Stockholders Equity |         | $       | 623,284      |  |         | $       | 667,677 | 
|                                                                                                       |                                        |                                            |         |         |              | 



49



---



##### 



AMERICAN BARGE LINE COMPANY


CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY/
MEMBERS DEFICIT


|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |         |         |  
|-------------------------------------------------------------------------------- | ------------------------------------------------------------------------------- | --------------------------------------- | -- | - | ------ | - | ------- | -------- | -------- | ----------- | ------------ | ------------- | - | --------- | ------ | - | ------ | - | ------- | ------- | ------- | - | ------- | ------ | ------ | - | ------- | ------- | ------- | -
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          | Accumulated |              |               |  
|                                                                                 |                                                                                 | Members Interest/                      |    |   |        |   |         |          |          |             | Other        |               |   |          
|                                                                                 |                                                                                 | Common Stock                            |    |   |        |   |         |          | Retained |             |              | Comprehensive |   |           |       
|                                                                                 |                                                                                 |                                         |    |   | Other  |   |         | Unearned |          |             | Earnings     |               |   | Income    |        |   |       
|                                                                                 |                                                                                 | Shares                                  |    |   | Amount |   |         | Capital  |          |             | Compensation |               |   | (Deficit) |        |   | (Loss) |   |         | Total   |        
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|                                                                                 |                                                                                 | (In thousands, except number of shares) |   
|Predecessor Company:                                                             |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |        
|Balance at December 27, 2002                                                     |                                                                                 |                                         |   |   |        | $ | 85,025  |          |          | $           | 1,429        |               |   | $         | (1,132 | ) |        | $ | (26,001 | )       |         | $ | (15,299 | )      |        | $ | 44,022  |        
|Amortization of unearned compensation                                            |                                                                                 |                                         |   |   |        |   |        |          |          |             |             |               |   |           | 435    |   |        |   |        |         |         |   |        |        |        |   | 435     |        
|Cancellation of restricted Parent Company common stock                           |                                                                                 |                                         |   |   |        |   |        |          |          |             | (408         | )             |   |           | 408    |   |        |   |        |         |         |   |        |        |        |   |        |        
|Comprehensive Loss:                                                              |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |        
|                                                                                 | Net loss                                                                        |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         | (61,576 | )       |   |         |       |        |   |         | (61,576 | )      
|                                                                                 | Net gain on fuel swaps designated as cash flow hedging
    instruments          |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | 452    |        |   |         | 452     |        
|                                                                                 | Net gain on interest rate swaps designated as cash flow hedging
    instruments |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | 440    |        |   |         | 440     |        
|                                                                                 | Foreign currency translation                                                    |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | 504    |        |   |         | 504     |        
|                                                                                 | Minimum pension liability adjustment                                            |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | (3,951 | )      |   |         | (3,951  | )      
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|                                                                                 |                                                                                 | Total Comprehensive Loss                |    |   |       |   |         |          |         |             |              |               |  |           |        |   |       |   |         |         | (61,576 | ) |         |        | (2,555 | ) |         |         | (64,131 | )
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|Balance at December 26, 2003                                                     |                                                                                 |                                         |   |   |        |   | 85,025  |          |          |             | 1,021        |               |   |           | (289   | ) |        |   | (87,577 | )       |         |   | (17,854 | )      |        |   | (19,674 | )      
|Amortization of unearned compensation                                            |                                                                                 |                                         |   |   |        |   |        |          |          |             |             |               |   |           | 195    |   |        |   |        |         |         |   |        |        |        |   | 195     |        
|Cancellation of restricted Parent Company common stock                           |                                                                                 |                                         |   |   |        |   |        |          |          |             | (20          | )             |   |           | 20     |   |        |   |        |         |         |   |        |        |        |   |        |        
|Comprehensive Income:                                                            |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |        
|                                                                                 | Net income                                                                      |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         | 4,394   |         |   |         |       |        |   |         | 4,394   |        
|                                                                                 | Net loss on fuel swaps designated as cash flow hedging
    instruments          |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | (520   | )      |   |         | (520    | )      
|                                                                                 | Net loss on interest rate swaps designated as cash flow hedging
    instruments |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | (150   | )      |   |         | (150    | )      
|                                                                                 | Foreign currency translation                                                    |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | (912   | )      |   |         | (912    | )      
|                                                                                 | Minimum pension liability adjustment                                            |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | 19,436 |        |   |         | 19,436  |        
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|                                                                                 |                                                                                 | Total Comprehensive Income              |    |   |       |   |         |          |         |             |              |               |  |           |        |   |       |   |         |         | 4,394   |   |         |        | 17,854 |   |         |         | 22,248  |  
|Elimination of historical equity in Vessel Leasing                               |                                                                                 |                                         |   |   |        |   | (2,769  | )        |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   | (2,769  | )      
|Debt restructuring and fresh start accounting adjustments                        |                                                                                 |                                         |   |   |        |   | (82,256 | )        |          |             | (1,001       | )             |   |           | 74     |   |        |   | 83,183  |         |         |   |        |        |        |   |        |        
|Reorganized Company:                                                             |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |        
|Reorganized Company Equity                                                       |                                                                                 |                                         |   |   |        |   |        |          |          |             | 100,098      |               |   |           |       |   |        |   |        |         |         |   |        |        |        |   | 100,098 |        
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|Balance at December 31, 2004                                                     |                                                                                 |                                         |   |   |        |   |        |          |          |             | 100,098      |               |   |           |       |   |        |   |        |         |         |   |        |        |        |   | 100,098 |        
|Issuance of common stock                                                         |                                                                                 |                                         | 10 |   |        |   |        |          |          |             |             |               |   |           |       |   |        |   |        |         |         |   |        |        |        |   |        |        
|Parent Company capital contribution                                              |                                                                                 |                                         |   |   |        |   |        |          |          |             | 144,834      |               |   |           |       |   |        |   |        |         |         |   |        |        |        |   | 144,834 |        
|Issuance of Parent Company restricted stock and recognition of
    stock options |                                                                                 |                                         |   |   |        |   |        |          |          |             | 6,205        |               |   |           | (6,205 | ) |        |   |        |         |         |   |        |        |        |   |        |        
|Amortization of Parent Company restricted stock and stock options                |                                                                                 |                                         |   |   |        |   |        |          |          |             |             |               |   |           | 2,710  |   |        |   |        |         |         |   |        |        |        |   | 2,710   |        
|Comprehensive Income                                                             |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |         |   |         |        |        |   |         |        
|                                                                                 | Net Income                                                                      |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         | 11,813  |         |   |         |       |        |   |         | 11,813  |        
|                                                                                 | Minimum pension liability (net of tax benefit)                                  |                                         |    |  |        |   |         |         |          |             |              |              |   |           |        |  |        |   |         |        |         |   |         | (5,854 | )      |   |         | (5,854  | )      
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|                                                                                 |                                                                                 | Total Comprehensive Income              |    |   |       |   |         |          |         |             |              |               |  |           |        |   |       |   |         |         | 11,813  |   |         |        | (5,854 | ) |         |         | 5,959   |  
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        
|Balance at December 31, 2005                                                     |                                                                                 |                                         | 10 |   |        | $ |        |          |          | $           | 251,237      |               |   | $         | (3,495 | ) |        | $ | 11,813  |         |         | $ | (5,854  | )      |        | $ | 253,701 |        
|                                                                                 |                                                                                 |                                         |    |   |        |   |         |          |          |             |              |               |   |           |        |   |        |   |         |         |        



50



---



##### 



AMERICAN BARGE LINE COMPANY


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |          |         |        |         |         |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------------ | ------------------------------------------------------------------------- | -------- | ------------------- | ------- | ------ | ----------------- | -------- | ------- | ------ | ------- | ------- | ------- | -
|                                                     |                                                                                                        | Reorganized                                            |                                                                           |          |                    
|                                                     |                                                                                                        | Company                                                |                                                                           |          | Predecessor Company |        
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |        
|                                                     |                                                                                                        | Fiscal Year Ended                                      |                                                                           |          | Fiscal Year Ended   |         |        | Fiscal Year Ended |         
|                                                     |                                                                                                        | December 31,                                           |                                                                           |          | December 31,        |         |        | December 26,      |         
|                                                     |                                                                                                        | 2005                                                   |                                                                           |          | 2004                |         |        | 2003              |         
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        | (In thousands)                                         |                                                                          
|                                                     | Net Income (Loss)                                                                                      |                                                        | $                                                                         | 11,813   |                     |         | $      | 4,394             |          |         | $      | (61,576 | )      
|                                                     | Adjustments to Reconcile Net Income (Loss) to Net Cash Provided
    by (Used in) Operating Activities: |                                                        |                                                                           |          |                     |         |        |                   |          |         |        |         |        
|                                                     |                                                                                                        | Depreciation and Amortization                          |                                                                           |          | 49,121              |         |        |                   | 53,175   |         |        |         | 54,918  |        
|                                                     |                                                                                                        | Interest Accretion and Debt Issuance Cost Amortization |                                                                           |          | 6,781               |         |        |                   | 9,614    |         |        |         | 8,877   |        
|                                                     |                                                                                                        | Loss on Sale of Argentina Assets                       |                                                                           |          |                    |         |        |                   | 35,197   |         |        |         |        |        
|                                                     |                                                                                                        | (Gain) Loss on Property Dispositions                   |                                                                           |          | (4,628              | )       |        |                   | 247      |         |        |         | (287    | )      
|                                                     |                                                                                                        | Other Operating Activities                             |                                                                           |          | (700                | )       |        |                   | 981      |         |        |         | (4,170  | )      
|                                                     |                                                                                                        | Reorganization Items                                   |                                                                           |          |                    |         |        |                   | 21,724   |         |        |         | 24,344  |        
|                                                     |                                                                                                        | Fresh Start Adjustments                                |                                                                           |          |                    |         |        |                   | 83,030   |         |        |         |        |        
|                                                     |                                                                                                        | Gain on Discharge of Debt                              |                                                                           |          |                    |         |        |                   | (155,358 | )       |        |         |        |        
|                                                     |                                                                                                        | Changes in Operating Assets and Liabilities:           |                                                                           |          |                     |         |        |                   |          |         |        |         |         |        
|                                                     |                                                                                                        |                                                        | Accounts Receivable                                                       |          |                     | (18,728 | )      |                   |          | (1,690  | )      |         |         | (36,465 | )
|                                                     |                                                                                                        |                                                        | Materials and Supplies                                                    |          |                     | 4,559   |        |                   |          | (9,105  | )      |         |         | 2,281   |  
|                                                     |                                                                                                        |                                                        | Accrued Interest                                                          |          |                     | 4,025   |        |                   |          | 3,926   |        |         |         | 6,485   |  
|                                                     |                                                                                                        |                                                        | Other Current Assets                                                      |          |                     | 1,364   |        |                   |          | (987    | )      |         |         | (1,517  | )
|                                                     |                                                                                                        |                                                        | Other Current Liabilities                                                 |          |                     | 23,245  |        |                   |          | 11,834  |        |         |         | 12,803  |  
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        |                                                        | Net Cash Provided by Operating Activities before Reorganization
    Items |          |                     | 76,852  |        |                   |          | 56,982  |        |         |         | 5,693   |  
|                                                     |                                                                                                        | Reorganization Items Paid                              |                                                                           |          | (13,514             | )       |        |                   | (20,785  | )       |        |         | (21,759 | )      
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        |                                                        | Net Cash Provided by (Used in) Operating Activities                       |          |                     | 63,338  |        |                   |          | 36,197  |        |         |         | (16,066 | )
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|INVESTING ACTIVITIES                                 |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |          |         |        |        
|                                                     | Property Additions                                                                                     |                                                        |                                                                           | (47,279  | )                   |         |        | (12,520           | )        |         |        | (9,209  | )      
|                                                     | Proceeds from Sale of Argentina Assets                                                                 |                                                        |                                                                           |         |                     |         |        | 24,100            |          |         |        |        |        
|                                                     | Proceeds from Sale of Interest in GMS                                                                  |                                                        |                                                                           |         |                     |         |        | 14,000            |          |         |        |        |        
|                                                     | Investment in Vessel Leasing                                                                           |                                                        |                                                                           | (2,500   | )                   |         |        |                  |          |         |        |        |        
|                                                     | Proceeds from Property Dispositions                                                                    |                                                        |                                                                           | 14,915   |                     |         |        | 4,890             |          |         |        | 2,422   |        
|                                                     | Net Change in Restricted Cash                                                                          |                                                        |                                                                           | 9,182    |                     |         |        | (1,428            | )        |         |        | (1,426  | )      
|                                                     | Other Investing Activities                                                                             |                                                        |                                                                           | (1,811   | )                   |         |        | (1,814            | )        |         |        | (3,604  | )      
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        |                                                        | Net Cash (Used in) Provided by Investing Activities                       |          |                     | (27,493 | )      |                   |          | 27,228  |        |         |         | (11,817 | )
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|FINANCING ACTIVITIES                                 |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |          |         |        |        
|                                                     | Short-Term Borrowings                                                                                  |                                                        |                                                                           |         |                     |         |        | 1,693             |          |         |        | 5,146   |        
|                                                     | DIP Credit Facility Borrowings                                                                         |                                                        |                                                                           |         |                     |         |        |                  |          |         |        | 50,000  |        
|                                                     | DIP Credit Facility Repayments                                                                         |                                                        |                                                                           |         |                     |         |        | (50,000           | )        |         |        |        |        
|                                                     | Long-Term Debt Repayments                                                                              |                                                        |                                                                           | (407,551 | )                   |         |        | (7,161            | )        |         |        | (3,204  | )      
|                                                     | Revolving Credit Facility Initial Borrowings                                                           |                                                        |                                                                           | 170,710  |                     |         |        |                  |          |         |        |        |        
|                                                     | Revolving Credit Facility Repayments                                                                   |                                                        |                                                                           | (100,710 | )                   |         |        |                  |          |         |        |        |        
|                                                     | 2015 Senior Note Initial Borrowings                                                                    |                                                        |                                                                           | 200,000  |                     |         |        |                  |          |         |        |        |        
|                                                     | 2015 Senior Note Repayments                                                                            |                                                        |                                                                           | (70,000  | )                   |         |        |                  |          |         |        |        |        
|                                                     | Outstanding Checks                                                                                     |                                                        |                                                                           | 9,220    |                     |         |        | 5,702             |          |         |        | 325     |        
|                                                     | Debt Costs                                                                                             |                                                        |                                                                           | (13,855  | )                   |         |        | (953              | )        |         |        | (3,001  | )      
|                                                     | Proceeds from Parent Company capital contribution                                                      |                                                        |                                                                           | 144,934  |                     |         |        |                  |          |         |        |        |        
|                                                     | Other Financing Activities                                                                             |                                                        |                                                                           | (1,279   | )                   |         |        | (1,336            | )        |         |        | (604    | )      
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        |                                                        | Net Cash (Used in) Provided by Financing Activities                       |          |                     | (68,531 | )      |                   |          | (52,055 | )      |         |         | 48,662  |  
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|Net (Decrease) Increase in Cash and Cash Equivalents |                                                                                                        |                                                        | (32,686                                                                   | )        |                     |         | 11,370 |                   |          |         | 20,779 |        
|Cash and Cash Equivalents at Beginning of Period     |                                                                                                        |                                                        | 46,645                                                                    |          |                     |         | 35,275 |                   |          |         | 14,496 |        
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|                                                     |                                                                                                        |                                                        | Cash and Cash Equivalents at End of Period                                |          | $                   | 13,959  |        |                   | $        | 46,645  |        |         | $       | 35,275  |  
|                                                     |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |         
|Supplemental Cash Flow Information:                  |                                                                                                        |                                                        |                                                                           |          |                     |         |        |                   |          |         |        |        
|                                                     | Interest Paid                                                                                          |                                                        | $                                                                         | 31,920   |                     |         | $      | 25,011            |          |         | $      | 25,681  |        
|                                                     | Income Taxes Paid                                                                                      |                                                        |                                                                           | 13,258   |                     |         |        | 1,088             |          |         |        | 3,343   |        



51



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


(Dollars in thousands)




|        |                    
|------- | -------------------
|NOTE 1. | ACCOUNTING POLICIES



| |                 
| | ----------------
| | REPORTING ENTITY

















| |                            
| | ---------------------------
| | PRINCIPLES OF CONSOLIDATION



52



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |            
| | -----------
| | FISCAL YEAR





| |                 
| | ----------------
| | USE OF ESTIMATES





| |                          
| | -------------------------
| | CASH AND CASH EQUIVALENTS





| |                
| | ---------------
| | RESTRICTED CASH





| |                    
| | -------------------
| | ACCOUNTS RECEIVABLE



|                                |  |                     |        |   |              |   |        |  
|------------------------------- |  | ------------------- | ------ | - | ------------ | - | ------ | -
|                                |  | Reorganized Company |       
|                                |  |                     |       
|                                |  | December 31,        |        |   | December 31, |  
|                                |  | 2005                |        |   | 2004         |  
|                                |  |                     |        |   |              |  
|Accounts Receivable             |  | $                   | 94,506 |   |              | $ | 75,483 |  
|Allowance for Doubtful Accounts |  |                     | (1,741 | ) |              |   | (1,578 | )
|                                |  |                     |        |   |              |  
|                                |  | $                   | 92,765 |   |              | $ | 73,905 |  
|                                |  |                     |        |   |              |  



53



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                       
| | ----------------------
| | MATERIALS AND SUPPLIES



|                   |  |                     |        |  |              |   |        | 
|------------------ |  | ------------------- | ------ |  | ------------ | - | ------ | 
|                   |  | Reorganized Company |       
|                   |  |                     |       
|                   |  | December 31,        |        |  | December 31, |  
|                   |  | 2005                |        |  | 2004         |  
|                   |  |                     |        |  |              |  
|Raw Materials      |  | $                   | 9,754  |  |              | $ | 5,614  | 
|Work in Process    |  |                     | 13,913 |  |              |   | 22,284 | 
|Parts and Supplies |  |                     | 21,309 |  |              |   | 18,459 | 
|                   |  |                     |        |  |              |  
|                   |  | $                   | 44,976 |  |              | $ | 46,357 | 
|                   |  |                     |        |  |              |  



| |                     
| | --------------------
| | OTHER CURRENT ASSETS







| |                                          
| | -----------------------------------------
| | PROPERTIES, DEPRECIATION AND AMORTIZATION



54



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                              |  |                     |         |  |              |   |         | 
|----------------------------- |  | ------------------- | ------- |  | ------------ | - | ------- | 
|                              |  | Reorganized Company |        
|                              |  |                     |        
|                              |  | December 31,        |         |  | December 31, |  
|                              |  | 2005                |         |  | 2004         |  
|                              |  |                     |         |  |              |  
|Land                          |  | $                   | 10,117  |  |              | $ | 10,117  | 
|Buildings and Improvements    |  |                     | 13,187  |  |              |   | 13,094  | 
|Equipment                     |  |                     | 456,064 |  |              |   | 420,157 | 
|                              |  |                     |         |  |              |  
|                              |  |                     | 479,368 |  |              |   | 443,368 | 
|Less Accumulated Depreciation |  |                     | 53,627  |  |              |   | 6,686   | 
|                              |  |                     |         |  |              |  
|                              |  | $                   | 425,741 |  |              | $ | 436,682 | 
|                              |  |                     |         |  |              |  





| |                                
| | -------------------------------
| | IMPAIRMENT OF LONG-LIVED ASSETS





| |                                         
| | ----------------------------------------
| | ASSETS AND ASSET CAPITALIZATION POLICIES





55



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                   
| | ------------------
| | VESSEL LEASING LLC





| |                                
| | -------------------------------
| | INVESTMENTS IN EQUITY INVESTEES





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | UABL Limited (UABL)  the Company sold its
    50% ownership interest in UABL along with boats and barges to
    Ultrapetrol (Bahamas) Ltd. for $24,100 in cash on April 23,
    2004. The sale resulted in a loss of $35,197 and is reported as
    a reorganization item in the statement of operations.                                                                                                                                                            
|
| | Global Materials Services LLC (GMS)  On
    October 6, 2004, the Company sold its 50% ownership
    interest in GMS to Mid-South Terminal Company, L.P. for $14,000
    cash. This sale resulted in a $335 gain and is reported as a
    reorganization item in the statement of operations.                                                                                                                                                                         
|
| | Global Materials Services Venezuela
    (GMSV)  the Company has a 46% ownership
    interest in GMSV. During 2002, GMS, the Company and minority
    owners organized new companies to unload bauxite in Venezuela.
    The GMSV companies are Global Materials Services Venezuela C.A.,
    GMS Venezuela Terminal Partners LLC and GMS Venezuela Terminal
    Holdings LLC. The Company contributed $500 capital in 2004 and
    $1,417 in capital to GMSV in 2002.
|
| | Earnings related to the Companys equity method investees
    in aggregate were $1,520, $3,195 and $4,714 for fiscal years
    2005, 2004, and 2003, respectively. These earnings are included
    in other income in the consolidated statement of operations.                                                                                                                                                                                                         



| |                       
| | ----------------------
| | DEBT COST AMORTIZATION





| |              
| | -------------
| | DEBT DISCOUNT



56



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                    
| | -------------------
| | REVENUE RECOGNITION















| |                                                            
| | -----------------------------------------------------------
| | EXPENSE ESTIMATES FOR HARBOR AND TOWING SERVICE
    CHARGES





| |                                 
| | --------------------------------
| | INSURANCE CLAIM LOSS DEDUCTIBLES



57



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                       
| | ----------------------
| | EMPLOYEE BENEFIT PLANS

post-retirement






| |                             
| | ----------------------------
| | FOREIGN CURRENCY TRANSLATION







| |                  
| | -----------------
| | RECLASSIFICATIONS





| |                                     
| | ------------------------------------
| | RECENTLY ISSUED ACCOUNTING STANDARDS



58



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


paid-in


109-2). 109-2






|        |     
|------- | ----
|NOTE 2. | DEBT

|                                                       |  |                     |         |  |              |   |         | 
|------------------------------------------------------ |  | ------------------- | ------- |  | ------------ | - | ------- | 
|                                                       |  | Reorganized Company |        
|                                                       |  |                     |        
|                                                       |  | December 31,        |         |  | December 31, |  
|                                                       |  | 2005                |         |  | 2004         |  
|                                                       |  |                     |         |  |              |  
|Asset based revolver  Bank of America/ UBS Securities |  | $                   | 70,000  |  |              | $ |        | 
|2015 Senior Notes                                      |  |                     | 130,000 |  |              |   |        | 
|Bonds guaranteed by the Maritime Administration        |  |                     |        |  |              |   | 32,251  | 
|Maritime Lien Notes                                    |  |                     |        |  |              |   | 9,046   | 
|Tort Lien Notes                                        |  |                     |        |  |              |   | 418     | 
|Revolving Credit Facility  JPMorgan Chase             |  |                     |        |  |              |   | 47,839  | 
|Tranche A Term Loan                                    |  |                     |        |  |              |   | 42,531  | 
|Tranche B Term Loan                                    |  |                     |        |  |              |   | 122,448 | 
|Tranche C Term Loan                                    |  |                     |        |  |              |   | 144,077 | 
|Deferred interest on bank debt                         |  |                     |        |  |              |   | 7,823   | 
|                                                       |  |                     |         |  |              |  
|                                                       |  |                     | 200,000 |  |              |   | 406,433 | 
|Less current portion of long-term debt                 |  |                     |        |  |              |   | 2,887   | 
|                                                       |  |                     |         |  |              |  
|Long-term debt                                         |  | $                   | 200,000 |  |              | $ | 403,546 | 
|                                                       |  |                     |         |  |              |  



59



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)
















60



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ |        | 
|2007       |  |   |        | 
|2008       |  |   |        | 
|2009       |  |   |        | 
|2010       |  |   | 70,000  | 
|Thereafter |  |   | 130,000 | 
|           |  |   |        
|           |  | $ | 200,000 | 
|           |  |   |        



|        |             
|------- | ------------
|NOTE 3. | INCOME TAXES





61



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                            |          |             |   |        |                     |  |   |          |   |  |   |         |  
|----------------------------------------------------------- | -------- | ----------- | - | ------ | ------------------- |  | - | -------- | - |  | - | ------- | -
|                                                            |          | Reorganized |   |        |                    
|                                                            |          | Company     |   |        | Predecessor Company | 
|                                                            |          |             |   |        |                     | 
|                                                            |          | 2005        |   |        | 2004                |  |   | 2003     |  
|                                                            |          |             |   |        |                     |  |   |          |  
|Earnings (loss) before income taxes and extraordinary item: |          |             |   |        |                     |  |   |          |   |  |   |        
|                                                            | Domestic |             | $ | 14,730 |                     |  | $ | (201,528 | ) |  | $ | (59,565 | )
|                                                            | Foreign  |             |   | 4,813  |                     |  |   | 52,351   |   |  |   | 90      |  
|                                                            |          |             |   |        |                     |  |   |          |  
|                                                            | Total    |             | $ | 19,543 |                     |  | $ | (149,177 | ) |  | $ | (59,475 | )
|                                                            |          |             |   |        |                     |  |   |          |  



|                                                             |         |             |        |        |             |   |       |       |  |   |       |       |  
|------------------------------------------------------------ | ------- | ----------- | ------ | ------ | ----------- | - | ----- | ----- |  | - | ----- | ----- | -
|                                                             |         | Reorganized |        |        | Predecessor |  
|                                                             |         | Company     |        |        | Company     |  
|                                                             |         |             |        |        |             |  
|                                                             |         | 2005        |        |        | 2004        |   |       | 2003  | 
|                                                             |         |             |        |        |             |   |       |       | 
|Currently payable:                                           |         |             |        |        |             |   |       |       |  |   |       |      
|                                                             | Federal |             | $      | 5,796  |             |   | $     |      |  |   | $     | (5    | )
|                                                             | State   |             |        | 801    |             |   |       |      |  |   |       | 37    |  
|                                                             | Foreign |             |        | 2,705  |             |   |       | 1,787 |  |   |       | 2,069 |  
|                                                             |         |             |        |        |             |   |       |       | 
|                                                             |         |             | 9,302  |        |             |   | 1,787 |       |  |   | 2,101 |      
|                                                             |         |             |        |        |             |   |       |       | 
|Deferred:                                                    |         |             |        |        |             |   |       |       |  |   |       |      
|                                                             | Federal |             |        | (1,166 | )           |   |       |      |  |   |       |      |  
|                                                             | State   |             |        | (406   | )           |   |       |      |  |   |       |      |  
|                                                             |         |             |        |        |             |   |       |       | 
|                                                             |         |             | (1,572 | )      |             |   |      |       |  |   |      |      
|                                                             |         |             |        |        |             |   |       |       | 
|                                                             |         | $           | 7,730  |        |             | $ | 1,787 |       |  | $ | 2,101 |      
|                                                             |         |             |        |        |             |   |       |       | 
|Income tax benefit attributable to other comprehensive loss: |         | $           | (3,508 | )      |             | $ |      |       |  | $ |      |      



|                                |  |             |       |  
|------------------------------- |  | ----------- | ----- | -
|                                |  | Reorganized |      
|                                |  | Company     |      
|                                |  |             |      
|                                |  | 2005        |      
|                                |  |             |      
|Taxes at federal statutory rate |  |             | 6,840 |  
|State income taxes, net         |  |             | 257   |  
|Foreign operations, net         |  |             | 993   |  
|Permanent compensation items    |  |             | (641  | )
|Nondeductible losses            |  |             | 245   |  
|Other miscellaneous items       |  |             | 36    |  
|                                |  |             |      
|Total income tax expense        |  |             | 7,730 |  
|                                |  |             |      



62



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                |                            |                     |        |       |              |   |        |       | 
|------------------------------------------------------------------------------- | -------------------------- | ------------------- | ------ | ----- | ------------ | - | ------ | ----- | 
|                                                                                |                            | Reorganized Company |       
|                                                                                |                            |                     |       
|                                                                                |                            | December 31,        |        |       | December 31, |  
|                                                                                |                            | 2005                |        |       | 2004         |  
|                                                                                |                            |                     |        |       |              |  
|DEFERRED TAX ASSETS:                                                            |                            |                     |        |       |              |   |        |      
|Reserve for bad debts                                                           |                            | $                   | 652    |       |              | $ | 631    |      
|Inventory adjustments                                                           |                            |                     | 318    |       |              |   | 237    |      
|Employee benefits and compensation                                              |                            |                     | 3,134  |       |              |   | 2,642  |      
|EPA and legal reserves                                                          |                            |                     | 336    |       |              |   | 154    |      
|Second injury fund accruals                                                     |                            |                     | 79     |       |              |   | 133    |      
|Warranty accruals                                                               |                            |                     | 125    |       |              |   | 119    |      
|                                                                                |                            |                     |        |       |              |  
|                                                                                | CURRENT DEFERRED TAX ASSET |                     | $      | 4,644 |              |   | $      | 3,916 | 
|Foreign property                                                                |                            | $                   |       |       |              | $ | 280    |      
|Accrued claims                                                                  |                            |                     | 2,271  |       |              |   | 3,246  |      
|Accrued pension                                                                 |                            |                     | 5,257  |       |              |   | 10,356 |      
|Deferred non-qualified 401(k) plan                                              |                            |                     | 60     |       |              |   | 61     |      
|Accrued post-retirement medical                                                 |                            |                     | 3,654  |       |              |   | 3,820  |      
|Accrued SCP post-retirement benefits and other                                  |                            |                     | 321    |       |              |   | 28     |      
|Stock compensation                                                              |                            |                     | 665    |       |              |   |       |      
|Grant income                                                                    |                            |                     | 73     |       |              |   |       |      
|Valuation allowance                                                             |                            |                     | (37    | )     |              |   |       |      
|                                                                                |                            |                     |        |       |              |  
|TOTAL DEFERRED TAX ASSETS                                                       |                            | $                   | 16,908 |       |              | $ | 21,707 |      
|                                                                                |                            |                     |        |       |              |  
|DEFERRED TAX LIABILITIES:                                                       |                            |                     |        |       |              |   |        |      
|Domestic property                                                               |                            |                     | 14,593 |       |              |   | 19,298 |      
|Pension asset  Jeffboat Plan                                                   |                            |                     |       |       |              |   | 6,255  |      
|Equity investments in domestic partnerships and limited
    liability companies |                            |                     | 917    |       |              |   | 324    |      
|Long term leases                                                                |                            |                     | 674    |       |              |   | 719    |      
|Prepaid insurance                                                               |                            |                     | 633    |       |              |   |       |      
|Software                                                                        |                            |                     | 91     |       |              |   | 191    |      
|                                                                                |                            |                     |        |       |              |  
|TOTAL DEFERRED TAX LIABILITIES                                                  |                            | $                   | 16,908 |       |              | $ | 26,787 |      
|                                                                                |                            |                     |        |       |              |  
|NET DEFERRED TAX LIABILITY                                                      |                            | $                   |       |       |              | $ | 5,080  |      



|        |                       
|------- | ----------------------
|NOTE 4. | EMPLOYEE BENEFIT PLANS



63



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












64



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                                                       |  |                   |          |   |                     |   |          |                   |  |   |          |  
|-------------------------------------------------------------------------------------- |  | ----------------- | -------- | - | ------------------- | - | -------- | ----------------- |  | - | -------- | -
|                                                                                       |  | Pension Plans     |         
|                                                                                       |  |                   |         
|                                                                                       |  | Reorganized       |          |   |                    
|                                                                                       |  | Company           |          |   | Predecessor Company |  
|                                                                                       |  |                   |          |   |                     |  
|                                                                                       |  | December 31, 2005 |          |   | December 31, 2004   |   |          | December 26, 2003 | 
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|CHANGE IN BENEFIT OBLIGATION:                                                          |  |                   |          |   |                     |   |          |                   |  |   |          |  
|Benefit obligation, beginning of period                                                |  | $                 | (132,996 | ) |                     | $ | (128,325 | )                 |  | $ | (110,713 | )
|Service cost                                                                           |  |                   | (4,681   | ) |                     |   | (4,955   | )                 |  |   | (4,347   | )
|Interest cost                                                                          |  |                   | (8,094   | ) |                     |   | (7,913   | )                 |  |   | (7,379   | )
|Impact of plan changes                                                                 |  |                   |         |   |                     |   |         |                   |  |   | (47      | )
|Liability loss                                                                         |  |                   | (19,257  | ) |                     |   | (1,164   | )                 |  |   | (10,811  | )
|Benefits paid                                                                          |  |                   | 6,087    |   |                     |   | 8,592    |                   |  |   | 4,972    |  
|Impact of spinoff of Evansville Plan                                                   |  |                   |         |   |                     |   | 141      |                   |  |   |         |  
|Impact of termination of Special Retirement Plan                                       |  |                   |         |   |                     |   | 628      |                   |  |   |         |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|Benefit obligation, end of period                                                      |  | $                 | (158,941 | ) |                     | $ | (132,996 | )                 |  | $ | (128,325 | )
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|CHANGE IN PLAN ASSETS:                                                                 |  |                   |          |   |                     |   |          |                   |  |   |          |  
|Fair value of plan assets, beginning of period                                         |  |                   | 122,743  |   |                     |   | 116,919  |                   |  |   | 104,764  |  
|Actual return on plan assets                                                           |  |                   | 16,157   |   |                     |   | 14,517   |                   |  |   | 17,114   |  
|Employer contributions                                                                 |  |                   | 3,417    |   |                     |   | 10       |                   |  |   | 13       |  
|Benefits paid                                                                          |  |                   | (6,086   | ) |                     |   | (8,592   | )                 |  |   | (4,972   | )
|Impact of spinoff of Evansville Plan                                                   |  |                   |         |   |                     |   | (111     | )                 |  |   |         |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|Fair value of plan assets, end of period                                               |  | $                 | 136,231  |   |                     | $ | 122,743  |                   |  | $ | 116,919  |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|FUNDED STATUS:                                                                         |  |                   |          |   |                     |   |          |                   |  |   |          |  
|Funded status                                                                          |  | $                 | (22,710  | ) |                     | $ | (10,253  | )                 |  | $ | (11,406  | )
|Unrecognized net actuarial loss                                                        |  |                   | 13,171   |   |                     |   |         |                   |  |   | 28,022   |  
|Unrecognized prior service cost                                                        |  |                   |         |   |                     |   |         |                   |  |   | 1,664    |  
|Net claims during 4th quarter                                                          |  |                   | 580      |   |                     |   |         |                   |  |   |         |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|(Accrued) Prepaid benefit cost                                                         |  | $                 | (8,959   | ) |                     | $ | (10,253  | )                 |  | $ | 18,280   |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|AMOUNTS RECOGNIZED IN THE CONSOLIDATED STATEMENT OF FINANCIAL
    POSITION CONSIST OF: |  |                   |          |   |                     |   |          |                   |  |   |          |  
|Prepaid benefit cost                                                                   |  | $                 |         |   |                     | $ | 15,638   |                   |  | $ | 21,824   |  
|Accrued benefit liability                                                              |  |                   | (18,321  | ) |                     |   | (25,891  | )                 |  |   | (22,979  | )
|Minimum pension liability                                                              |  |                   | 9,362    |   |                     |   |         |                   |  |   | 19,435   |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 
|Net amount recognized                                                                  |  | $                 | (8,959   | ) |                     | $ | (10,253  | )                 |  | $ | 18,280   |  
|                                                                                       |  |                   |          |   |                     |   |          |                   | 



| |                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------
| | The accumulated benefit obligation for the Companys
    pension plan amounts to $156,541 as of 
     December 31, 2005.

65



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                               |  |                       |         |   |                     |   |         |                   |  |   |         |  
|---------------------------------------------- |  | --------------------- | ------- | - | ------------------- | - | ------- | ----------------- |  | - | ------- | -
|                                               |  | Post-Retirement Plans |        
|                                               |  |                       |        
|                                               |  | Reorganized           |         |   |                    
|                                               |  | Company               |         |   | Predecessor Company |  
|                                               |  |                       |         |   |                     |  
|                                               |  | December 31, 2005     |         |   | December 31, 2004   |   |         | December 26, 2003 | 
|                                               |  |                       |         |   |                     |   |         |                   | 
|CHANGE IN BENEFIT OBLIGATION:                  |  |                       |         |   |                     |   |         |                   |  |   |         |  
|Benefit obligation, beginning of period        |  | $                     | (10,771 | ) |                     | $ | (12,877 | )                 |  | $ | (15,304 | )
|Service cost                                   |  |                       | (350    | ) |                     |   | (497    | )                 |  |   | (483    | )
|Interest cost                                  |  |                       | (646    | ) |                     |   | (779    | )                 |  |   | (992    | )
|Plan participants contributions               |  |                       | (332    | ) |                     |   | (301    | )                 |  |   | (623    | )
|Plan amendment                                 |  |                       |        |   |                     |   |        |                   |  |   | 4,139   |  
|Actuarial (loss) gain                          |  |                       | (1,221  | ) |                     |   | 1,832   |                   |  |   | (1,516  | )
|Benefits paid                                  |  |                       | 1,139   |   |                     |   | 1,851   |                   |  |   | 1,902   |  
|                                               |  |                       |         |   |                     |   |         |                   | 
|Benefit obligation, end of period              |  | $                     | (12,181 | ) |                     | $ | (10,771 | )                 |  | $ | (12,877 | )
|                                               |  |                       |         |   |                     |   |         |                   | 
|CHANGE IN PLAN ASSETS:                         |  |                       |         |   |                     |   |         |                   |  |   |         |  
|Fair value of plan assets, beginning of period |  | $                     |        |   |                     | $ |        |                   |  | $ |        |  
|Employer contributions                         |  |                       | 807     |   |                     |   | 1,550   |                   |  |   | 1,279   |  
|Plan participants contributions               |  |                       | 332     |   |                     |   | 301     |                   |  |   | 623     |  
|Benefits paid                                  |  |                       | (1,139  | ) |                     |   | (1,851  | )                 |  |   | (1,902  | )
|                                               |  |                       |         |   |                     |   |         |                   | 
|Fair value of plan assets, end of period       |  | $                     |        |   |                     | $ |        |                   |  | $ |        |  
|                                               |  |                       |         |   |                     |   |         |                   | 
|FUNDED STATUS:                                 |  |                       |         |   |                     |   |         |                   |  |   |         |  
|Funded status                                  |  | $                     | (12,181 | ) |                     | $ | (10,771 | )                 |  | $ | (12,877 | )
|Unrecognized net actuarial loss                |  |                       | 1,221   |   |                     |   |        |                   |  |   | 4,474   |  
|Unrecognized prior service cost                |  |                       |        |   |                     |   |        |                   |  |   | (4,139  | )
|Net claims during 4th quarter                  |  |                       | 247     |   |                     |   | 224     |                   |  |   | 542     |  
|                                               |  |                       |         |   |                     |   |         |                   | 
|Accrued benefit cost                           |  | $                     | (10,713 | ) |                     | $ | (10,547 | )                 |  | $ | (12,000 | )
|                                               |  |                       |         |   |                     |   |         |                   | 

66



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


COMPONENTS OF NET PERIODIC BENEFIT COST:


|                 |                                     |             |   |         |                     |  |   |         |   |  |   |         |  
|---------------- | ----------------------------------- | ----------- | - | ------- | ------------------- |  | - | ------- | - |  | - | ------- | -
|                 |                                     | Reorganized |   |         |                    
|                 |                                     | Company     |   |         | Predecessor Company | 
|                 |                                     |             |   |         |                     | 
|                 |                                     | 2005        |   |         | 2004                |  |   | 2003    |  
|                 |                                     |             |   |         |                     |  |   |         |  
|Pension:         |                                     |             |   |         |                     |  |   |         |   |  |   |        
|                 | Service cost                        |             | $ | 4,681   |                     |  | $ | 4,955   |   |  | $ | 4,348   |  
|                 | Interest cost                       |             |   | 8,094   |                     |  |   | 7,913   |   |  |   | 7,379   |  
|                 | Expected return on plan assets      |             |   | (10,072 | )                   |  |   | (10,180 | ) |  |   | (10,461 | )
|                 | Amortization of prior service costs |             |   |        |                     |  |   | 216     |   |  |   | 216     |  
|                 | Loss amortization                   |             |   |        |                     |  |   | 863     |   |  |   | 11      |  
|                 |                                     |             |   |         |                     |  |   |         |  
|                 | Net periodic benefit cost (income)  |             | $ | 2,703   |                     |  | $ | 3,767   |   |  | $ | 1,493   |  
|                 |                                     |             |   |         |                     |  |   |         |  
|Post-retirement: |                                     |             |   |         |                     |  |   |         |   |  |   |        
|                 | Service cost                        |             | $ | 350     |                     |  | $ | 497     |   |  | $ | 483     |  
|                 | Interest cost                       |             |   | 647     |                     |  |   | 779     |   |  |   | 992     |  
|                 | Amortization of prior service costs |             |   |        |                     |  |   | (1,095  | ) |  |   |        |  
|                 | Loss amortization                   |             |   |        |                     |  |   | 405     |   |  |   | 152     |  
|                 | Purchase Accounting Adjustment      |             |   |        |                     |  |   | (991    | ) |  |   |        |  
|                 |                                     |             |   |         |                     |  |   |         |  
|                 | Net periodic benefit cost           |             | $ | 997     |                     |  | $ | (405    | ) |  | $ | 1,627   |  
|                 |                                     |             |   |         |                     |  |   |         |  





|         |                                |             |  |       |                     |  |  |       |  |  |  |       | 
|-------- | ------------------------------ | ----------- |  | ----- | ------------------- |  |  | ----- |  |  |  | ----- | 
|         |                                | Reorganized |  |       |                    
|         |                                | Company     |  |       | Predecessor Company | 
|         |                                |             |  |       |                     | 
|         |                                | 2005        |  |       | 2004                |  |  | 2003  | 
|         |                                |             |  |       |                     |  |  |       | 
|Pension: |                                |             |  |       |                     |  |  |       |  |  |  |      
|         | Discount rate                  |             |  | 5.50% |                     |  |  | 6.25% |  |  |  | 6.25% | 
|         | Expected return on plan assets |             |  | 8.50% |                     |  |  | 8.50% |  |  |  | 8.50% | 
|         | Rate of compensation increase  |             |  | 4.00% |                     |  |  | 4.00% |  |  |  | 4.00% | 



|                 |               |             |  |       |                     |  |  |       |  |  |  |       | 
|---------------- | ------------- | ----------- |  | ----- | ------------------- |  |  | ----- |  |  |  | ----- | 
|                 |               | Reorganized |  |       |                    
|                 |               | Company     |  |       | Predecessor Company | 
|                 |               |             |  |       |                     | 
|                 |               | 2005        |  |       | 2004                |  |  | 2003  | 
|                 |               |             |  |       |                     |  |  |       | 
|Post-retirement: |               |             |  |       |                     |  |  |       |  |  |  |      
|                 | Discount rate |             |  | 6.25% |                     |  |  | 6.25% |  |  |  | 6.75% | 

67



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




Pension Plan Assets




|                                 |       |                   |      |       |                   |  |      |       |  
|-------------------------------- | ----- | ----------------- | ---- | ----- | ----------------- |  | ---- | ----- | -
|                                 |       | December 31, 2005 |      |       | December 31, 2004 | 
|                                 |       |                   |      |       |                   | 
|Asset Category Equity securities |       |                   | 65.1 | %     |                   |  | 66.9 | %    
|Debt securities                  |       |                   | 33.7 |       |                   |  | 33.0 |      
|Cash                             |       |                   | 1.2  |       |                   |  | 0.1  |      
|                                 |       |                   |      |       |                   | 
|                                 | Total |                   |      | 100.0 | %                 |  |      | 100.0 | %
|                                 |       |                   |      |       |                   | 

Investment Policies and Strategies


non-U.S.


Plans with Benefit Obligations in Excess of Plan Assets




|                               |  |              |          |  
|------------------------------ |  | ------------ | -------- | -
|                               |  | ACL LLC      |         
|                               |  | Pension Plan |         
|                               |  | December 31, |         
|                               |  | 2004         |         
|                               |  |              |         
|Projected Benefit Obligation   |  | $            | (103,231 | )
|Accumulated Benefit Obligation |  |              | (101,108 | )
|Plan Assets                    |  |              | 77,341   |  

Contributions and Payments




68



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|             |  |         |        |       |              |   |       | 
|------------ |  | ------- | ------ | ----- | ------------ | - | ----- | 
|             |  |         |        | Post- |             
|             |  | Pension |        |       | Retirement   |  
|             |  | Plans   |        |       | Medical Plan |  
|             |  |         |        |       |              |  
|2006         |  | $       | 4,292  |       |              | $ | 961   | 
|2007         |  |         | 4,640  |       |              |   | 986   | 
|2008         |  |         | 5,071  |       |              |   | 1,016 | 
|2009         |  |         | 5,556  |       |              |   | 1,054 | 
|2010         |  |         | 6,106  |       |              |   | 1,123 | 
|Next 5 years |  |         | 40,420 |       |              |   | 5,858 | 

NOTE 5.     LEASE
OBLIGATIONS




|                                 |  |      |        |  |      |   |        |      |  |   |        |      |  |      |        |  |           |   |        |  |  |   |        | 
|-------------------------------- |  | ---- | ------ |  | ---- | - | ------ | ---- |  | - | ------ | ---- |  | ---- | ------ |  | --------- | - | ------ |  |  | - | ------ | 
|                                 |  |      |        |  |      |   |        |      |  |   |        | 2011 | 
|                                 |  | 2006 |        |  | 2007 |   |        | 2008 |  |   | 2009   |      |  | 2010 |        |  | and after |  
|                                 |  |      |        |  |      |   |        |      |  |   |        |      |  |      |        |  |           |  
|Operating Lease Obligations      |  | $    | 20,910 |  |      | $ | 18,449 |      |  | $ | 16,211 |      |  | $    | 14,632 |  |           | $ | 12,241 |  |  | $ | 50,558 | 
|Future Capital Lease Obligations |  |      | 460    |  |      |   | 192    |      |  |   |       |      |  |      |       |  |           |   |       |  |  |   |       | 







|        |                           
|------- | --------------------------
|NOTE 6. | RELATED PARTY TRANSACTIONS







69



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AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)














|        |                                          
|------- | -----------------------------------------
|NOTE 7. | FINANCIAL INSTRUMENTS AND RISK MANAGEMENT



|                                                       |  |          |         |  |            |   |         | 
|------------------------------------------------------ |  | -------- | ------- |  | ---------- | - | ------- | 
|                                                       |  | 2005     |        
|                                                       |  |          |        
|                                                       |  | Carrying |         |  |           
|                                                       |  | Amount   |         |  | Fair Value |  
|                                                       |  |          |         |  |            |  
|Liabilities:                                           |  |          |         |  |            |   |         | 
|Asset based revolver  Bank of America/ UBS Securities |  | $        | 70,000  |  |            | $ | 70,000  | 
|2015 Senior Notes                                      |  |          | 130,000 |  |            |   | 140,400 | 



Fuel Price Risk Management




70



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


marked-to




Interest Rate Risk Management






|        |              
|------- | -------------
|NOTE 8. | CONTINGENCIES





|        |                  
|------- | -----------------
|NOTE 9. | BUSINESS SEGMENTS





71



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                      |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |         |   |  |   |         | 
|------------------------------------- |  | ------------------- | ------- |  | ------------- | - | ------- | ------------ |  | - | ------------ | - |  | ----- | ------- | - |  | - | ------- | 
|                                      |  | Reportable Segments |         |  |               |   |         |              | 
|                                      |  |                     |         |  | All Other     |   |         | Intersegment |  |   |             
|                                      |  | Barging             |         |  | Manufacturing |   |         | Segments(1)  |  |   | Eliminations |   |  | Total |        
|                                      |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |        
|Year ended December 31, 2005          |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |         |   |  |   |         | 
|Total revenue                         |  | $                   | 611,294 |  |               | $ | 138,985 |              |  | $ | 10,056       |   |  | $     | (18,965 | ) |  | $ | 741,370 | 
|Intersegment revenues                 |  |                     | 673     |  |               |   | 18,244  |              |  |   | 48           |   |  |       | (18,965 | ) |  |   |        | 
|                                      |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |        
|Revenues from external customers      |  |                     | 610,621 |  |               |   | 120,741 |              |  |   | 10,008       |   |  |       |        |   |  |   | 741,370 | 
|Depreciation and amortization expense |  |                     | 45,940  |  |               |   | 1,806   |              |  |   | 1,375        |   |  |       |        |   |  |   | 49,121  | 
|Operating income                      |  |                     | 48,454  |  |               |   | 7,203   |              |  |   | 1,891        |   |  |       | (1,446  | ) |  |   | 56,102  | 
|Segment assets                        |  |                     | 566,510 |  |               |   | 41,881  |              |  |   | 14,893       |   |  |       |        |   |  |   | 623,284 | 
|Property additions                    |  |                     | 43,605  |  |               |   | 2,804   |              |  |   | 870          |   |  |       |        |   |  |   | 47,279  | 
|Year ended December 31, 2004          |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |         |   |  |   |         | 
|Total revenue                         |  | $                   | 526,091 |  |               | $ | 99,315  |              |  | $ | 8,797        |   |  | $     | (1,905  | ) |  | $ | 632,298 | 
|Intersegment revenues                 |  |                     | 570     |  |               |   | 1,327   |              |  |   | 8            |   |  |       | (1,905  | ) |  |   |        | 
|                                      |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |        
|Revenues from external customers      |  |                     | 525,521 |  |               |   | 97,988  |              |  |   | 8,789        |   |  |       |        |   |  |   | 632,298 | 
|Depreciation and amortization expense |  |                     | 48,403  |  |               |   | 3,049   |              |  |   | 1,723        |   |  |       |        |   |  |   | 53,175  | 
|Operating income                      |  |                     | 22,284  |  |               |   | 2,889   |              |  |   | 186          |   |  |       |        |   |  |   | 25,359  | 
|Segment assets                        |  |                     | 593,094 |  |               |   | 63,764  |              |  |   | 10,819       |   |  |       |        |   |  |   | 667,677 | 
|Property additions                    |  |                     | 10,936  |  |               |   | 1,057   |              |  |   | 527          |   |  |       |        |   |  |   | 12,520  | 
|Year ended December 26, 2003          |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |         |   |  |   |         | 
|Total revenue                         |  | $                   | 543,160 |  |               | $ | 71,752  |              |  | $ | 7,099        |   |  | $     | (1,940  | ) |  | $ | 620,071 | 
|Intersegment revenues                 |  |                     | 396     |  |               |   | 1,544   |              |  |   |             |   |  |       | (1,940  | ) |  |   |        | 
|                                      |  |                     |         |  |               |   |         |              |  |   |              |   |  |       |        
|Revenues from external customers      |  |                     | 542,764 |  |               |   | 70,208  |              |  |   | 7,099        |   |  |       |        |   |  |   | 620,071 | 
|Depreciation and amortization expense |  |                     | 50,592  |  |               |   | 2,917   |              |  |   | 1,409        |   |  |       |        |   |  |   | 54,918  | 
|Operating income                      |  |                     | 1,367   |  |               |   | (810    | )            |  |   | (477         | ) |  |       |        |   |  |   | 80      | 
|Segment assets                        |  |                     | 719,876 |  |               |   | 64,035  |              |  |   | 28,285       |   |  |       |        |   |  |   | 812,196 | 
|Property additions                    |  |                     | 8,541   |  |               |   | 598     |              |  |   | 70           |   |  |       |        |   |  |   | 9,209   | 






|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Financial data for segments below the reporting thresholds is
    attributable to a segment operating terminals along the
    U.S. inland waterways and in Venezuela.



| |                       
| | ----------------------
| | Geographic Information

|              |  |             |         |  |                     |   |         |      |  |   |         | 
|------------- |  | ----------- | ------- |  | ------------------- | - | ------- | ---- |  | - | ------- | 
|              |  | Revenues    |        
|              |  |             |        
|              |  | Reorganized |         |  |                    
|              |  | Company     |         |  | Predecessor Company |  
|              |  |             |         |  |                     |  
|              |  | 2005        |         |  | 2004                |   |         | 2003 | 
|              |  |             |         |  |                     |   |         |      | 
|United States |  | $           | 714,941 |  |                     | $ | 601,821 |      |  | $ | 583,961 | 
|South America |  |             | 26,429  |  |                     |   | 30,477  |      |  |   | 36,110  | 
|              |  |             |         |  |                     |   |         |      | 
|Total         |  | $           | 741,370 |  |                     | $ | 632,298 |      |  | $ | 620,071 | 
|              |  |             |         |  |                     |   |         |      | 

72



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|              |  |                     |         |             |                   |   |         |                   |  |   |         | 
|------------- |  | ------------------- | ------- | ----------- | ----------------- | - | ------- | ----------------- |  | - | ------- | 
|              |  | Properties - Net    |        
|              |  |                     |        
|              |  |                     |         | Predecessor |                  
|              |  | Reorganized Company |         |             | Company           |  
|              |  |                     |         |             |                   |  
|              |  | December 31, 2005   |         |             | December 31, 2004 |   |         | December 26, 2003 | 
|              |  |                     |         |             |                   |   |         |                   | 
|United States |  | $                   | 413,824 |             |                   | $ | 422,752 |                   |  | $ | 512,404 | 
|South America |  |                     | 11,917  |             |                   |   | 13,930  |                   |  |   | 27,740  | 
|              |  |                     |         |             |                   |   |         |                   | 
|Total         |  | $                   | 425,741 |             |                   | $ | 436,682 |                   |  | $ | 540,144 | 
|              |  |                     |         |             |                   |   |         |                   | 





| |               
| | --------------
| | Major Customer



NOTE 10.     QUARTERLY DATA
(UNAUDITED)


|                    |  |                     |         |   |     |   |         |     |  |   |         |  |  |       |         |  |  |   |         | 
|------------------- |  | ------------------- | ------- | - | --- | - | ------- | --- |  | - | ------- |  |  | ----- | ------- |  |  | - | ------- | 
|                    |  | Reorganized Company |        
|                    |  |                     |        
|                    |  | 2005                |        
|                    |  |                     |        
|                    |  | 1st                 |         |   | 2nd |   |         | 3rd |  |   | 4th     |  |  | Total |        
|                    |  |                     |         |   |     |   |         |     |  |   |         |  |  |       |        
|Operating Revenue   |  | $                   | 146,322 |   |     | $ | 182,986 |     |  | $ | 175,854 |  |  | $     | 236,208 |  |  | $ | 741,370 | 
|Operating Income    |  |                     | 360     |   |     |   | 11,784  |     |  |   | 14,006  |  |  |       | 29,952  |  |  |   | 56,102  | 
|Net (Loss) Earnings |  |                     | (6,328  | ) |     |   | 6,033   |     |  |   | 3,506   |  |  |       | 8,602   |  |  |   | 11,813  | 

|                                                                                              |  |                     |         |   |     |   |         |     |  |   |         |   |  |       |          |   |  |   |          |  
|--------------------------------------------------------------------------------------------- |  | ------------------- | ------- | - | --- | - | ------- | --- |  | - | ------- | - |  | ----- | -------- | - |  | - | -------- | -
|                                                                                              |  | Predecessor Company |        
|                                                                                              |  |                     |        
|                                                                                              |  | 2004                |        
|                                                                                              |  |                     |        
|                                                                                              |  | 1st                 |         |   | 2nd |   |         | 3rd |  |   | 4th     |   |  | Total |         
|                                                                                              |  |                     |         |   |     |   |         |     |  |   |         |   |  |       |         
|Operating Revenue                                                                             |  | $                   | 140,910 |   |     | $ | 152,410 |     |  | $ | 158,716 |   |  | $     | 180,262  |   |  | $ | 632,298  |  
|Operating (Loss) Income                                                                       |  |                     | (7,380  | ) |     |   | 479     |     |  |   | 10,485  |   |  |       | 21,775   |   |  |   | 25,359   |  
|(Loss) Income Before Reorganization Items, Fresh Start
    Adjustments and Extraordinary Gain |  |                     | (17,150 | ) |     |   | (7,786  | )   |  |   | 2,295   |   |  |       | 11,628   |   |  |   | (11,013  | )
|Reorganization Items                                                                          |  |                     | 6,624   |   |     |   | 40,770  |     |  |   | 3,826   |   |  |       | 5,701    |   |  |   | 56,921   |  
|Fresh Start Adjustments                                                                       |  |                     |        |   |     |   |        |     |  |   |        |   |  |       | 83,030   |   |  |   | 83,030   |  
|Extraordinary Gain on Discharge
    of Debt                                                   |  |                     |        |   |     |   |        |     |  |   |        |   |  |       | (155,358 | ) |  |   | (155,358 | )
|Net (Loss) Earnings                                                                           |  |                     | (23,774 | ) |     |   | (48,556 | )   |  |   | (1,531  | ) |  |       | 78,255   |   |  |   | 4,394    |  





73



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|         |                                              
|-------- | ---------------------------------------------
|NOTE 11. | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)



|                                               |  |             |        |   |      |   |   | 
|---------------------------------------------- |  | ----------- | ------ | - | ---- | - | - | 
|                                               |  | Reorganized
|                                               |  | Company    
|                                               |  |            
|                                               |  | 2005        |        |   | 2004
|                                               |  |             |        |   |     
|Minimum pension liability (net of tax benefit) |  | $           | (5,854 | ) |      | $ |  | 





|         |                     
|-------- | --------------------
|NOTE 12. | STOCKHOLDERS EQUITY







|         |                   
|-------- | ------------------
|NOTE 13. | STOCK COMPENSATION







74



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                   |  |                       |           |          |       |   |        | 
|---------------------------------- |  | --------------------- | --------- | -------- | ----- | - | ------ | 
|                                   |  | 2005                  |          
|                                   |  |                       |          
|                                   |  |                       |           | Weighted |      
|                                   |  |                       |           | Average  |      
|                                   |  |                       |           | Exercise |      
|                                   |  | Shares                |           |          | Price |  
|                                   |  |                       |           |          |       |  
|                                   |  | (In thousands, except |          
|                                   |  | per share amounts)    |          
|Under option at beginning of year  |  |                       |          |          |       | $ |       | 
|Options granted                    |  |                       | 1,105,192 |          |       | $ | 4.19   | 
|Options exercised                  |  |                       |          |          |       | $ |       | 
|Options forfeited or expired       |  |                       |          |          |       | $ |       | 
|                                   |  |                       |           |          |       |  
|Under option at end of year        |  |                       | 1,105,192 |          |       | $ | 4.19   | 
|Options exercisable at end of year |  |                       | 208,000   |          |       | $ | 4.1625 | 
|Shares available for future grants |  |                       | 1,332,464 |          |       |   |        | 



Black-Scholes




|         |                                                       
|-------- | ------------------------------------------------------
|NOTE 14. | REORGANIZATION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE



75



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




debtor-in




pay-in










76



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


90-7,


|                                 |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      |        |        |              |   |        |        |       | 
|-------------------------------- | -------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------ | ------ | ------------ | - | ------ | ------ | ----- | 
|                                 |                            | Year Ended                                                                                                                                                                                                                                                                                                                                                                                                                           |        |        | Year Ended   |  
|                                 |                            | December 31,                                                                                                                                                                                                                                                                                                                                                                                                                         |        |        | December 26, |  
|REORGANIZATION ITEMS:            |                            | 2004                                                                                                                                                                                                                                                                                                                                                                                                                                 |        |        | 2003         |  
|                                 |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      |        |        |              |  
|Professional Fees                |                            | $                                                                                                                                                                                                                                                                                                                                                                                                                                    | 18,344 |        |              | $ | 16,740 |       
|                                 |                            | As part of the Plan of Reorganization, the Company rejected
    certain barge leases and other executory contracts. These
    rejections and the consequent reduction in the size of the
    domestic barging fleet resulted in the elimination of a number
    of salary and vessel employee positions. In addition, a number
    of management changes were initiated to better position the
    Company to emerge from Chapter 11 |        |        | 553          |   |        |        | 1,486 | 
|                                 |                            | As a result of the rejection of certain barge charter agreements
    due to the Chapter 11 filing and the rights of the charter
    owners to rely upon letters of credit to guarantee future
    payments of charter hire, draws totaling $2,354 in 2004 and
    $5,146 in 2003 were made on the letters. An additional $309 was
    accrued for settlements relating to the rejected barge charter
    agreements                  |        |        | 2,663        |   |        |        | 5,146 | 
|Interest Income                  |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      | (157   | )      |              |   | (138   | )     
|Loss on Sale of Argentina Assets |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      | 35,197 |        |              |   |       |       
|Other Reorganization Items       |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      | 321    |        |              |   | 1,110  |       
|                                 |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      |        |        |              |  
|                                 | TOTAL REORGANIZATION ITEMS |                                                                                                                                                                                                                                                                                                                                                                                                                                      | $      | 56,921 |              |   | $      | 24,344 |      
|                                 |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                      |        |        |              |  









90-7,


77



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|         |                       
|-------- | ----------------------
|NOTE 15. | FRESH START ACCOUNTING





|                               |                              |                      |         |        |               |  |   |             |             |  |              |         |         |   |         |        |         | 
|------------------------------ | ---------------------------- | -------------------- | ------- | ------ | ------------- |  | - | ----------- | ----------- |  | ------------ | ------- | ------- | - | ------- | ------ | ------- | 
|                               |                              | Predecessor          |         |        |               |  |   |             | Reorganized | 
|                               |                              | Company              |         |        |               |  |   |             | Company     | 
|                               |                              |                      |         |        |               |  |   |             |             | 
|                               |                              | December 31,         |         |        | Debt          |  |   | Fresh start |             |  | December 31, |        
|                               |                              | 2004                 |         |        | Restructuring |  |   | Adjustments |             |  | 2004         |        
|                               |                              |                      |         |        |               |  |   |             |             |  |              |        
|ASSETS                         |                              |                      |         |        |               |  |   |             |             |  |              |         |         |   |         |       
|CURRENT ASSETS                 |                              |                      |         |        |               |  |   |             |             |  |              |         |         |   |         |       
|                               | Cash and Cash Equivalents    |                      | $       | 46,645 |               |  | $ |            |             |  | $            |        |         |   | $       | 46,645 |        
|                               | Cash, Restricted             |                      |         | 9,182  |               |  |   |            |             |  |              |        |         |   |         | 9,182  |        
|                               | Accounts Receivable, Net     |                      |         | 78,323 |               |  |   |            |             |  |              | (326    | )(b)    |   |         | 77,997 |        
|                               | Materials and Supplies       |                      |         | 46,357 |               |  |   |            |             |  |              |        |         |   |         | 46,357 |        
|                               | Deferred Tax Asset  Current |                      |         |       |               |  |   |            |             |  |              | 3,916   | (f)     |   |         | 3,916  |        
|                               | Other Current Assets         |                      |         | 19,360 |               |  |   | 5,014       | (a)         |  |              | (2,785  | )(c)    |   |         | 21,589 |        
|                               |                              |                      |         |        |               |  |   |             |             |  |              |        
|                               |                              | Total Current Assets |         |        | 199,867       |  |   |             | 5,014       |  |              |         | 805     |   |         |        | 205,686 | 
|PROPERTIES-Net                 |                              |                      | 473,774 |        |               |  |  |             |             |  | (37,092      | )(d)    |         |   | 436,682 |       
|PENSION ASSETS                 |                              |                      | 22,434  |        |               |  |  |             |             |  | (6,796       | )(e)    |         |   | 15,638  |       
|INVESTMENT IN EQUITY INVESTEES |                              |                      | 4,558   |        |               |  |  |             |             |  | (162         | )(d)    |         |   | 4,396   |       
|DEFERRED TAX ASSET             |                              |                      |        |        |               |  |  |             |             |  | 17,791       | (f)     |         |   | 17,791  |       
|OTHER ASSETS                   |                              |                      | 15,370  |        |               |  |  |             |             |  | (10,095      | )(d)(g) |         |   | 5,275   |       
|                               |                              |                      |         |        |               |  |   |             |             |  |              |        
|                               |                              | Total Assets         |         | $      | 716,003       |  |   | $           | 5,014       |  |              | $       | (35,549 | ) |         | $      | 685,468 | 
|                               |                              |                      |         |        |               |  |   |             |             |  |              |        

78



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |         |         | 
|---------------------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------ | ------ | -------- | ------------- | - | ------- | ----------- | ----------- | - | ------------ | ------- | ------- | - | ------- | ------- | ------- | 
|                                                           |                                           | Predecessor                                                        |        |          |               |   |         |             | Reorganized |  
|                                                           |                                           | Company                                                            |        |          |               |   |         |             | Company     |  
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |  
|                                                           |                                           | December 31,                                                       |        |          | Debt          |   |         | Fresh start |             |   | December 31, |        
|                                                           |                                           | 2004                                                               |        |          | Restructuring |   |         | Adjustments |             |   | 2004         |        
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|LIABILITIES & MEMBERS (DEFICIT)/
    STOCKHOLDERS EQUITY |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |        
|LIABILITIES NOT SUBJECT TO COMPROMISE                      |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |        
|CURRENT LIABILITIES                                        |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |        
|                                                           | Accounts Payable                          |                                                                    | $      | 25,486   |               |   | $       |            |             |   | $            | (25     | )(h)    |   | $       | 25,461  |        
|                                                           | Accrued Payroll and Fringe Benefits       |                                                                    |        | 12,975   |               |   |         |            |             |   |              | 3,770   | (e)     |   |         | 16,745  |        
|                                                           | Deferred Revenue                          |                                                                    |        | 13,760   |               |   |         |            |             |   |              |        |         |   |         | 13,760  |        
|                                                           | Accrued Claims and Insurance Premiums     |                                                                    |        | 7,409    |               |   |         | 5,718       | (a)         |   |              |        |         |   |         | 13,127  |        
|                                                           | Accrued Interest                          |                                                                    |        | 1,273    |               |   |         |            |             |   |              |        |         |   |         | 1,273   |        
|                                                           | Current Portion of Long-Term Debt         |                                                                    |        | 32,251   |               |   |         |            |             |   |              | (29,364 | )(i)    |   |         | 2,887   |        
|                                                           | Accrued Reorganization Claims Settlements |                                                                    |        |         |               |   |         | 8,383       |             |   |              |        |         |   |         | 8,383   |        
|                                                           | Accrued Reorganization Fees               |                                                                    |        | 3,873    |               |   |         |            |             |   |              | 3,347   | (h)     |   |         | 7,220   |        
|                                                           | Other Liabilities                         |                                                                    |        | 24,647   |               |   |         | 379         | (a)         |   |              | (86     | )(e)    |   |         | 24,940  |        
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|                                                           |                                           | Total Current Liabilities                                          |        |          | 121,674       |   |         |             | 14,480      |   |              |         | (22,358 | ) |         |         | 113,796 | 
|LONG-TERM DEBT                                             |                                           |                                                                    |       |          |               |   | 374,182 | (a)         |             |   | 29,364       | (i)     |         |   | 403,546 |        
|PENSION LIABILITY                                          |                                           |                                                                    | 23,767 |          |               |   |        |             |             |   | (1,647       | )(e)    |         |   | 22,120  |        
|DEFERRED TAX LIABILITY                                     |                                           |                                                                    |       |          |               |   |        |             |             |   | 26,787       | (f)     |         |   | 26,787  |        
|OTHER LONG-TERM LIABILITIES                                |                                           |                                                                    | 17,811 |          |               |   | 759     | (a)         |             |   | 551          | (e)(k)  |         |   | 19,121  |        
|LIABILITIES SUBJECT TO COMPROMISE                          |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |        
|                                                           | Accounts Payable                          |                                                                    |        | 34,513   |               |   |         | (34,513     | )(a)        |   |              |        |         |   |         |        |        
|                                                           | Accrued Claims and Insurance Premiums     |                                                                    |        | 3,690    |               |   |         | (3,690      | )(a)        |   |              |        |         |   |         |        |        
|                                                           | Accrued Interest                          |                                                                    |        | 18,600   |               |   |         | (18,600     | )(a)        |   |              |        |         |   |         |        |        
|                                                           | Short-Term Debt                           |                                                                    |        | 47,839   |               |   |         | (47,839     | )(a)        |   |              |        |         |   |         |        |        
|                                                           | Current Portion of Long-Term Debt         |                                                                    |        | 531,619  |               |   |         | (531,619    | )(a)        |   |              |        |         |   |         |        |        
|                                                           | Other Liabilities                         |                                                                    |        | 3,602    |               |   |         | (3,602      | )(a)        |   |              |        |         |   |         |        |        
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|                                                           |                                           | Total Liabilities Subject to Compromise                            |        |          | 639,863       |   |         |             | (639,863    | ) |              |         |        |   |         |         |        | 
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|                                                           |                                           | Total Liabilities                                                  |        |          | 803,115       |   |         |             | (250,442    | ) |              |         | 32,697  |   |         |         | 585,370 | 
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|MEMBERS (DEFICIT)/ STOCKHOLDERS EQUITY                   |                                           |                                                                    |        |          |               |   |         |             |             |   |              |         |         |   |         |        
|                                                           | Reorganized Company Common Stock          |                                                                    |        |         |               |   |         |            | (a)         |   |              |        |         |   |         |        |        
|                                                           | Predecessor Company Members Equity       |                                                                    |        | 85,025   |               |   |         | (82,256     | )(a)        |   |              | (2,769  | )(k)    |   |         |        |        
|                                                           | Unearned Compensation                     |                                                                    |        | (74      | )             |   |         | 74          | (a)         |   |              |        |         |   |         |        |        
|                                                           | Other Capital                             |                                                                    |        | 1,001    |               |   |         | 99,097      | (a)         |   |              |        |         |   |         | 100,098 |        
|                                                           | Accumulated Other Comprehensive Loss      |                                                                    |        | (17,553  | )             |   |         |            |             |   |              | 17,553  |         |   |         |        |        
|                                                           | Retained Deficit                          |                                                                    |        | (155,511 | )             |   |         | 238,541     | (a)         |   |              | (83,030 | )       |   |         |        |        
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|                                                           |                                           | Total Members (Deficit)/ Stockholders Equity                     |        |          | (87,112       | ) |         |             | 255,456     |   |              |         | (68,246 | ) |         |         | 100,098 | 
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        
|                                                           |                                           | Total Liabilities and Members (Deficit)/
    Stockholders Equity |        | $        | 716,003       |   |         | $           | 5,014       |   |              | $       | (35,549 | ) |         | $       | 685,468 | 
|                                                           |                                           |                                                                    |        |          |               |   |         |             |             |   |              |        

79



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)







|    |                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Reflects the net increase to retained earnings (accumulated
    deficit), including the adjustment to liabilities subject to
    compromise for the settlement of pre-petition claims for
    (i) cash, (ii) issuance of ACL Common Stock and
    (iii) the cancellation of the DHC equity interest in the
    reorganized debtors.

|                                                  |                                                                 |                                                         |         |          |         | 
|------------------------------------------------- | --------------------------------------------------------------- | ------------------------------------------------------- | ------- | -------- | ------- | 
|Liabilities subject to compromise                 |                                                                 | $                                                       | 639,863 |         
|Form of settlement:                               |                                                                 |                                                         |         |         
|                                                  | Issuance of new common stock of ACL Inc.                        |                                                         |         | (100,098 | )      
|                                                  | Pre-petition senior lenders principal and deferred interest    |                                                         |         | (364,718 | )      
|Cancellation of DHCs equity interest in ACL LLC: |                                                                 |                                                         | (5,445  | )       
|                                                  | Members equity                                                 |                                                         |         | (464     | )      
|                                                  | Liability for estimated convenience class claims                |                                                         |         | (782     | )      
|                                                  | Liability for estimated maritime lien note holder cash payments |                                                         |         | (1,692   | )      
|                                                  | Maritime and tort lien notes reclassified to long-term debt     |                                                         |         | (9,464   | )      
|                                                  | Assumption of capital lease                                     |                                                         |         | (984     | )      
|                                                  | Liability for pre-petition insurance claims                     |                                                         |         | (704     | )      
|                                                  | Deferred non-qualified 401(k) plan                              |                                                         |         | (154     | )      
|                                                  |                                                                 |                                                         |        
|                                                  |                                                                 | Gain on discharge of debt                               |         |          | 155,358 | 
|Cancellation of DHCs equity interest in ACL LLC: |                                                                 |                                                         |         |         
|                                                  | Members equity                                                 |                                                         |         | 82,256   |        
|                                                  | Other capital                                                   |                                                         |         | 1,001    |        
|                                                  | Restricted DHC common stock                                     |                                                         |         | (74      | )      
|                                                  |                                                                 |                                                         |        
|                                                  |                                                                 | Net increase to Retained Earnings (Accumulated Deficit) |         | $        | 238,541 | 
|                                                  |                                                                 |                                                         |        



|    |                                                          
|--- | ---------------------------------------------------------
|(b) | Reflects uncollectible pre-petition accounts receivables.



|    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(c) |  | Reflects the adjustment to arrive at the fair value of prepaid
    charter and the fair value of assets held for resale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(d) |  | Reflects the allocation to the long-lived assets of ACL LLC of
    the combined amount of the equity and the estimated present
    value of the liabilities of the Reorganized Company. The equity
    is calculated by subtracting long-term debt from the
    reorganization value of the Company. The combined amount is
    allocated based upon the estimated fair value of the long lived
    assets, which is based upon independent appraisals as of
    December 31, 2004. The allocation is in conformity with the
    procedures specified by SFAS No. 141, Business
    Combinations. The sum of the fair value estimates of the
    long-lived assets exceeded the combined amount to be allocated.
    This excess is allocated as a pro-rata reduction of the amounts
    that otherwise would have been assigned to the long-lived
    assets. The adjustment reduced properties, investment in equity
    investments and software.
|   
|(e) |  | Reflects adjustments to the assets and liabilities of the
    Companys pension and retiree medical plans based upon the
    fair value of assets and the estimated present value of all
    future obligations under these plans at December 31, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(f) |  | Reflects the estimated fair value of deferred income tax assets
    and liabilities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   
|(g) |  | Reflects the adjustment to arrive at the fair value of prepaid
    charter, charter fees and a long term customer contract.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(h) |  | To eliminate pre-petition vessel charter accruals.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(i) |  | Reflects the accrual of reorganization expenses to be incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

80



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##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |  |                                                                                                                                                                                                                
|--- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(j) |  | Reclassification from current to long-term of amounts due by
    Vessel Leasing to holders of bonds guaranteed by MARAD.                                                                                       
|   
|(k) |  | Reclassification of DHCs ownership interest in Vessel
    Leasing from equity to a minority interest liability based on
    the purchase price paid by the Company for DHCs interest
    on January 12, 2005.

NOTE 16.     DEBTOR GUARANTOR
FINANCIAL STATEMENTS
















81



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Operations for the Fiscal Year Ended
December 31, 2005


|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |        |   |         |         |         |   |         |         |         | 
|-------------------------- | ----------------------------------------- | ------------------------ | ------- | ------- | --------- | - | ------- | ------- | ---------- | - | ---------- | ------- | ------ | ---------- | ------- | ------- | ------------ | - | ------ | ------ | ------ | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                           |                                           |                          |         | Parent  |           |   |         |         | Subsidiary |   |            | Non-    |        |            |         |         | Combined     |  
|                           |                                           | Parent                   |         |         | Guarantor |   |         | Issuers |            |   | Guarantors |         |        | Guarantors |         |         | Eliminations |   |        | Totals |       
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|                           |                                           | (Dollars in thousands)   |        
|REVENUE                    |                                           | $                        |        |         |           | $ |        |         |            | $ | 54,441     |         |        | $          | 715,474 |         |              | $ | 29,790 |        |        | $ | (58,335 | )       |         | $ | 741,370 |        
|                          
|OPERATING EXPENSE          |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |        |   |         |         |         |   |         |        
|                           | Materials, Supplies and Other             |                          |         |        |           |   |         |        |            |   |            | 710     |        |            |         | 282,522 |              |   |        | 8,150  |        |   |         | (380    | )       |   |         | 291,002 |        
|                           | Rent                                      |                          |         |        |           |   |         |        |            |   |            |        |        |            |         | 77,976  |              |   |        | 1,776  |        |   |         | (57,955 | )       |   |         | 21,797  |        
|                           | Labor and Fringe Benefits                 |                          |         |        |           |   |         |        |            |   |            |        |        |            |         | 121,634 |              |   |        | 4,703  |        |   |         |        |         |   |         | 126,337 |        
|                           | Fuel                                      |                          |         |        |           |   |         |        |            |   |            |        |        |            |         | 126,893 |              |   |        | 421    |        |   |         |        |         |   |         | 127,314 |        
|                           | Depreciation and Amortization             |                          |         |        |           |   |         |        |            |   |            | 35,951  |        |            |         | 9,869   |              |   |        | 3,301  |        |   |         |        |         |   |         | 49,121  |        
|                           | Taxes, Other Than Income Taxes            |                          |         |        |           |   |         |        |            |   |            |        |        |            |         | 16,964  |              |   |        |       |        |   |         |        |         |   |         | 16,964  |        
|                           | Selling, General & Administrative         |                          |         |        |           |   |         | 306     |            |   |            | 390     |        |            |         | 47,675  |              |   |        | 4,362  |        |   |         |        |         |   |         | 52,733  |        
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|                           |                                           | Total Operating Expenses |         |         |          |   |         |         | 306        |   |            |         | 37,051 |            |         |         | 683,533      |   |        |        | 22,713 |   |         |         | (58,335 | ) |         |         | 685,268 | 
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|OPERATING (LOSS) INCOME    |                                           |                          |        |         |           |   | (306    | )       |            |   | 17,390     |         |        |            | 31,941  |         |              |   | 7,077  |        |        |   |        |         |         |   | 56,102  |        
|OTHER EXPENSE (INCOME)     |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |        |   |         |         |         |   |         |        
|                           | Interest Expense                          |                          |         |        |           |   |         |        |            |   |            | 38,523  |        |            |         | 482     |              |   |        | 4,317  |        |   |         |        |         |   |         | 43,322  |        
|                           | Interest (Income) Expense from Affiliates |                          |         |        |           |   |         |        |            |   |            | (408    | )      |            |         |        |              |   |        | 408    |        |   |         |        |         |   |         |        |        
|                           | Other, Net                                |                          |         | (11,813 | )         |   |         | (17,111 | )          |   |            | (37,834 | )      |            |         | (2,037  | )            |   |        | (60    | )      |   |         | 62,092  |         |   |         | (6,763  | )      
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|                           |                                           |                          | (11,813 | )       |           |   | (17,111 | )       |            |   | 281        |         |        |            | (1,555  | )       |              |   | 4,665  |        |        |   | 62,092  |         |         |   | 36,559  |        
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|INCOME BEFORE INCOME TAXES |                                           |                          | 11,813  |         |           |   | 16,805  |         |            |   | 17,109     |         |        |            | 33,496  |         |              |   | 2,412  |        |        |   | (62,092 | )       |         |   | 19,543  |        
|INCOME TAXES (BENEFIT)     |                                           |                          |        |         |           |   | 4,992   |         |            |   | (2         | )       |        |            | 325     |         |              |   | 2,415  |        |        |   |        |         |         |   | 7,730   |        
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       
|NET INCOME (LOSS)          |                                           | $                        | 11,813  |         |           | $ | 11,813  |         |            | $ | 17,111     |         |        | $          | 33,171  |         |              | $ | (3     | )      |        | $ | (62,092 | )       |         | $ | 11,813  |        
|                           |                                           |                          |         |         |           |   |         |         |            |   |            |         |        |            |         |         |              |   |        |        |       

82



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Operations for the Fiscal Year Ended
December 31, 2004


|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |        |   |          |          |         |   |          |         |         | 
|----------------------------------------------------------------------------------------------------------- | ----------------------------------------- | ------------------------ | - | --------- | - | - | ------- | ------ | ---------- | ---------- | -------- | ------- | ---------- | - | -------- | ------------ | -------- | - | ------- | ------- | ------ | - | -------- | -------- | ------- | - | -------- | ------- | ------- | 
|                                                                                                            |                                           |                          |   | Parent    |   |   |         |        | Subsidiary |            |          | Non-    |            |   |          |              | Combined |  
|                                                                                                            |                                           | Parent                   |   | Guarantor |   |   | Issuers |        |            | Guarantors |          |         | Guarantors |   |          | Eliminations |          |   | Totals  |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |        
|                                                                                                            |                                           | (Dollars in thousands)   |  
|REVENUE                                                                                                     |                                           | $                        |  |           |   | $ |        |        |            | $          | 61,581   |         |            | $ | 603,111  |              |          | $ | 35,173  |         |        | $ | (67,567  | )        |         | $ | 632,298  |        
|                                                                                                           
|OPERATING EXPENSE                                                                                           |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |        |   |          |          |         |   |          |        
|                                                                                                            | Materials, Supplies and Other             |                          |   |          |   |   |         |       |            |            |          | 3,346   |            |   |          | 252,527      |          |   |         | 11,168  |        |   |          | (1,091   | )       |   |          | 265,950 |        
|                                                                                                            | Rent                                      |                          |   |          |   |   |         |       |            |            |          |        |            |   |          | 87,852       |          |   |         | 2,392   |        |   |          | (66,476  | )       |   |          | 23,768  |        
|                                                                                                            | Labor and Fringe Benefits                 |                          |   |          |   |   |         |       |            |            |          |        |            |   |          | 113,025      |          |   |         | 4,394   |        |   |          |         |         |   |          | 117,419 |        
|                                                                                                            | Fuel                                      |                          |   |          |   |   |         |       |            |            |          |        |            |   |          | 89,341       |          |   |         | 502     |        |   |          |         |         |   |          | 89,843  |        
|                                                                                                            | Depreciation and Amortization             |                          |   |          |   |   |         |       |            |            |          | 33,876  |            |   |          | 14,942       |          |   |         | 4,357   |        |   |          |         |         |   |          | 53,175  |        
|                                                                                                            | Taxes, Other Than Income Taxes            |                          |   |          |   |   |         |       |            |            |          |        |            |   |          | 19,351       |          |   |         | 1       |        |   |          |         |         |   |          | 19,352  |        
|                                                                                                            | Selling, General & Administrative         |                          |   |          |   |   |         |       |            |            |          | (2      | )          |   |          | 32,722       |          |   |         | 4,712   |        |   |          |         |         |   |          | 37,432  |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|                                                                                                            |                                           | Total Operating Expenses |   |           |  |   |         |        |           |            |          |         | 37,220     |   |          |              | 609,760  |   |         |         | 27,526 |   |          |          | (67,567 | ) |          |         | 606,939 | 
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|OPERATING INCOME (LOSS)                                                                                     |                                           |                          |  |           |   |   |        |        |            |            | 24,361   |         |            |   | (6,649   | )            |          |   | 7,647   |         |        |   |         |          |         |   | 25,359   |        
|OTHER EXPENSE (INCOME)                                                                                      |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |        |   |          |          |         |   |          |        
|                                                                                                            | Interest Expense                          |                          |   |          |   |   |         |       |            |            |          | 37,096  |            |   |          | 117          |          |   |         | 1,810   |        |   |          |         |         |   |          | 39,023  |        
|                                                                                                            | Interest (Income) Expense from Affiliates |                          |   |          |   |   |         |       |            |            |          | (3,283  | )          |   |          | 544          |          |   |         | 2,739   |        |   |          |         |         |   |          |        |        
|                                                                                                            | Other, Net                                |                          |   |          |   |   |         | (9,474 | )          |            |          | 199,466 |            |   |          | 23,380       |          |   |         | (81,824 | )      |   |          | (135,986 | )       |   |          | (4,438  | )      
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|                                                                                                            |                                           |                          |  |           |   |   | (9,474  | )      |            |            | 233,279  |         |            |   | 24,041   |              |          |   | (77,275 | )       |        |   | (135,986 | )        |         |   | 34,585   |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|INCOME (LOSS) BEFORE REORGANIZATION ITEMS, FRESH START
    ADJUSTMENTS, INCOME TAXES AND EXTRAORDINARY ITEM |                                           |                          |  |           |   |   | 9,474   |        |            |            | (208,918 | )       |            |   | (30,690  | )            |          |   | 84,922  |         |        |   | 135,986  |          |         |   | (9,226   | )      
|REORGANIZATION ITEMS                                                                                        |                                           |                          |  |           |   |   |        |        |            |            | (157     | )       |            |   | 22,295   |              |          |   | 34,783  |         |        |   |         |          |         |   | 56,921   |        
|FRESH START ADJUSTMENTS                                                                                     |                                           |                          |  |           |   |   | 5,080   |        |            |            | 29,965   |         |            |   | 53,503   |              |          |   | (5,518  | )       |        |   |         |          |         |   | 83,030   |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY ITEM                                                    |                                           |                          |  |           |   |   | 4,394   |        |            |            | (238,726 | )       |            |   | (106,488 | )            |          |   | 55,657  |         |        |   | 135,986  |          |         |   | (149,177 | )      
|INCOME TAXES                                                                                                |                                           |                          |  |           |   |   |        |        |            |            |         |         |            |   | 174      |              |          |   | 1,613   |         |        |   |         |          |         |   | 1,787    |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|INCOME (LOSS) BEFORE EXTRAORDINARY ITEM                                                                     |                                           |                          |  |           |   |   | 4,394   |        |            |            | (238,726 | )       |            |   | (106,662 | )            |          |   | 54,044  |         |        |   | 135,986  |          |         |   | (150,964 | )      
|EXTRAORDINARY ITEM  GAIN (LOSS) ON DISCHARGE OF
    DEBT                                                   |                                           |                          |  |           |   |   |        |        |            |            | 248,200  |         |            |   | (92,842  | )            |          |   |        |         |        |   |         |          |         |   | 155,358  |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       
|NET INCOME (LOSS)                                                                                           |                                           | $                        |  |           |   | $ | 4,394   |        |            | $          | 9,474    |         |            | $ | (199,504 | )            |          | $ | 54,044  |         |        | $ | 135,986  |          |         | $ | 4,394    |        
|                                                                                                            |                                           |                          |   |           |   |   |         |        |            |            |          |         |            |   |          |              |          |   |         |         |       

83



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Operations for the Fiscal Year Ended
December 26, 2003


|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |        |   |         |         |         |   |         |         |         | 
|---------------------------------------------------------- | ----------------------------------------- | ------------------------ | - | --------- | - | ------- | - | ---------- | ---------- | - | ------- | ---------- | ------ | - | ------------ | -------- | ------- | ------ | ------ | ------ | ------ | - | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|                                                           |                                           |                          |   | Parent    |   |         |   | Subsidiary |            |   | Non-    |            |        |   |              | Combined |        
|                                                           |                                           | Parent                   |   | Guarantor |   | Issuers |   |            | Guarantors |   |         | Guarantors |        |   | Eliminations |          |         | Totals |       
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |       
|                                                           |                                           | (Dollars in thousands)   |  
|REVENUE                                                    |                                           | $                        |  |           |   | $       |  |            |            | $ | 55,972  |            |        | $ | 585,639      |          |         | $      | 40,717 |        |        | $ | (62,257 | )       |         | $ | 620,071 |        
|                                                          
|OPERATING EXPENSE                                          |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |        |   |         |         |         |   |         |        
|                                                           | Materials, Supplies and Other             |                          |   |          |   |         |   |           |            |   |         | 1,978      |        |   |              | 241,614  |         |        |        | 17,911 |        |   |         | (1,425  | )       |   |         | 260,078 |        
|                                                           | Rent                                      |                          |   |          |   |         |   |           |            |   |         |           |        |   |              | 96,076   |         |        |        | 1,364  |        |   |         | (60,832 | )       |   |         | 36,608  |        
|                                                           | Labor and Fringe Benefits                 |                          |   |          |   |         |   |           |            |   |         |           |        |   |              | 117,019  |         |        |        | 4,609  |        |   |         |        |         |   |         | 121,628 |        
|                                                           | Fuel                                      |                          |   |          |   |         |   |           |            |   |         |           |        |   |              | 82,829   |         |        |        | 598    |        |   |         |        |         |   |         | 83,427  |        
|                                                           | Depreciation and Amortization             |                          |   |          |   |         |   |           |            |   |         | 31,612     |        |   |              | 16,510   |         |        |        | 6,796  |        |   |         |        |         |   |         | 54,918  |        
|                                                           | Taxes, Other Than Income Taxes            |                          |   |          |   |         |   |           |            |   |         |           |        |   |              | 21,862   |         |        |        |       |        |   |         |        |         |   |         | 21,862  |        
|                                                           | Selling, General & Administrative         |                          |   |          |   |         |   |           |            |   |         | 55         |        |   |              | 37,892   |         |        |        | 3,523  |        |   |         |        |         |   |         | 41,470  |        
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|                                                           |                                           | Total Operating Expenses |   |           |  |         |   |            |           |   |         |            | 33,645 |   |              |          | 613,802 |        |        |        | 34,801 |   |         |         | (62,257 | ) |         |         | 619,991 | 
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|OPERATING INCOME (LOSS)                                    |                                           |                          |  |           |   |         |  |            |            |   | 22,327  |            |        |   | (28,163      | )        |         |        | 5,916  |        |        |   |        |         |         |   | 80      |        
|OTHER EXPENSE (INCOME)                                     |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |        |   |         |         |         |   |         |        
|                                                           | Interest Expense                          |                          |   |          |   |         |   |           |            |   |         | 38,631     |        |   |              | 150      |         |        |        | 2,733  |        |   |         |        |         |   |         | 41,514  |        
|                                                           | Interest (Income) Expense from Affiliates |                          |   |          |   |         |   |           |            |   |         | (7,876     | )      |   |              | 465      |         |        |        | 7,411  |        |   |         |        |         |   |         |        |        
|                                                           | Other, Net                                |                          |   |          |   |         |   |           |            |   |         | 53,131     |        |   |              | (504     | )       |        |        | (4,688 | )      |   |         | (54,242 | )       |   |         | (6,303  | )      
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|                                                           |                                           |                          |  |           |   |         |  |            |            |   | 83,886  |            |        |   | 111          |          |         |        | 5,456  |        |        |   | (54,242 | )       |         |   | 35,211  |        
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|(LOSS) INCOME BEFORE REORGANIZATION ITEMS AND INCOME TAXES |                                           |                          |  |           |   |         |  |            |            |   | (61,559 | )          |        |   | (28,274      | )        |         |        | 460    |        |        |   | 54,242  |         |         |   | (35,131 | )      
|REORGANIZATION ITEMS                                       |                                           |                          |  |           |   |         |  |            |            |   | (138    | )          |        |   | 24,482       |          |         |        |       |        |        |   |        |         |         |   | 24,344  |        
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|(LOSS) INCOME BEFORE INCOME TAXES                          |                                           |                          |  |           |   |         |  |            |            |   | (61,421 | )          |        |   | (52,756      | )        |         |        | 460    |        |        |   | 54,242  |         |         |   | (59,475 | )      
|INCOME TAXES                                               |                                           |                          |  |           |   |         |  |            |            |   | 155     |            |        |   | 116          |          |         |        | 1,830  |        |        |   |        |         |         |   | 2,101   |        
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       
|NET LOSS                                                   |                                           | $                        |  |           |   | $       |  |            |            | $ | (61,576 | )          |        | $ | (52,872      | )        |         | $      | (1,370 | )      |        | $ | 54,242  |         |         | $ | (61,576 | )      
|                                                           |                                           |                          |   |           |   |         |   |            |            |   |         |            |        |   |              |          |         |        |        |        |       

84



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Financial Position at
December 31, 2005


|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |        |  |          |   |          |   |         |        |         | 
|------------------------------------ | -------------------------------------- | ------------------------------------------ | ------- | ------ | ---------- |  | ------- | ------- | ---------- | - | ---------- | ------- | ------- | ---------- | ------ | -------- | ------------ |  | ------- | ------ | ------ |  | -------- | - | -------- | - | ------- | ------ | ------- | 
|                                     |                                        |                                            |         | Parent |            |  |         |         | Subsidiary |   |            | Non-    |         |            |        |          | Combined     | 
|                                     |                                        | Parent                                     |         |        | Guarantors |  |         | Issuers |            |   | Guarantors |         |         | Guarantors |        |          | Eliminations |  |         | Totals |       
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | (Dollars in thousands)                     |        
|ASSETS                              
|CURRENT ASSETS                       |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |        |  |          |   |          |   |         |       
|                                     | Cash and Cash Equivalents              |                                            | $       |       |            |  | $       |        |            |   | $          | 7,740   |         |            | $      | 38       |              |  | $       | 6,181  |        |  | $        |  |          |   | $       | 13,959 |        
|                                     | Accounts Receivable, Net               |                                            |         |       |            |  |         |        |            |   |            | 38      |         |            |        | 86,267   |              |  |         | 10,221 |        |  |          |  |          |   |         | 96,526 |        
|                                     | Accounts Receivable  Intercompany     |                                            |         |       |            |  |         | (11,479 | )          |   |            | 152,705 |         |            |        | (140,920 | )            |  |         | (306   | )      |  |          |  |          |   |         |       |        
|                                     | Materials and Supplies                 |                                            |         |       |            |  |         |        |            |   |            |        |         |            |        | 43,358   |              |  |         | 1,618  |        |  |          |  |          |   |         | 44,976 |        
|                                     | Deferred Tax Asset  Current           |                                            |         |       |            |  |         | 4,644   |            |   |            |        |         |            |        |         |              |  |         |       |        |  |          |  |          |   |         | 4,644  |        
|                                     | Other Current Assets                   |                                            |         |       |            |  |         |        |            |   |            | 1,049   |         |            |        | 13,114   |              |  |         | 2,624  |        |  |          |  |          |   |         | 16,787 |        
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Current Assets                       |         |        |           |  |         |         | (6,835     | ) |            |         | 161,532 |            |        |          | 1,857        |  |         |        | 20,338 |  |          |   |         |   |         |        | 176,892 | 
|PROPERTIES-Net                       |                                        |                                            |        |        |            |  |        |         |            |   | 347,849    |         |         |            | 65,975 |          |              |  | 11,917  |        |        |  |         |   |          |   | 425,741 |       
|INVESTMENT IN SUBSIDIARIES           |                                        |                                            | 253,701 |        |            |  | 255,492 |         |            |   | (31,089    | )       |         |            | 74,442 |          |              |  |        |        |        |  | (552,546 | ) |          |   |        |       
|INVESTMENT IN EQUITY INVESTEES       |                                        |                                            |        |        |            |  |        |         |            |   |           |         |         |            | 4,408  |          |              |  | 1,124   |        |        |  |         |   |          |   | 5,532   |       
|OTHER ASSETS                         |                                        |                                            |        |        |            |  |        |         |            |   | 7,059      |         |         |            | 7,993  |          |              |  | 67      |        |        |  |         |   |          |   | 15,119  |       
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Assets                               |         | $      | 253,701    |  |         | $       | 248,657    |   |            | $       | 485,351 |            |        | $        | 154,675      |  |         | $      | 33,446 |  |          | $ | (552,546 | ) |         | $      | 623,284 | 
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                    
|LIABILITIES                         
|CURRENT LIABILITIES                  |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |        |  |          |   |          |   |         |       
|                                     | Accounts Payable                       |                                            | $       |       |            |  | $       |        |            |   | $          | 20,518  |         |            | $      | 25,047   |              |  | $       | 1,952  |        |  | $        |  |          |   | $       | 47,517 |        
|                                     | Accrued Payroll and Fringe Benefits    |                                            |         |       |            |  |         |        |            |   |            | (27     | )       |            |        | 22,330   |              |  |         |       |        |  |          |  |          |   |         | 22,303 |        
|                                     | Deferred Revenue                       |                                            |         |       |            |  |         |        |            |   |            |        |         |            |        | 16,631   |              |  |         |       |        |  |          |  |          |   |         | 16,631 |        
|                                     | Accrued Claims and Insurance Premiums  |                                            |         |       |            |  |         |        |            |   |            |        |         |            |        | 13,361   |              |  |         |       |        |  |          |  |          |   |         | 13,361 |        
|                                     | Accrued Interest                       |                                            |         |       |            |  |         |        |            |   |            | 5,179   |         |            |        |         |              |  |         |       |        |  |          |  |          |   |         | 5,179  |        
|                                     | Accrued Reorganization Claims and Fees |                                            |         |       |            |  |         |        |            |   |            |        |         |            |        | 2,724    |              |  |         |       |        |  |          |  |          |   |         | 2,724  |        
|                                     | Other Liabilities                      |                                            |         |       |            |  |         | (4,608  | )          |   |            | 195     |         |            |        | 22,242   |              |  |         | 5,144  |        |  |          |  |          |   |         | 22,973 |        
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Current Liabilities                  |         |        |           |  |         |         | (4,608     | ) |            |         | 25,865  |            |        |          | 102,335      |  |         |        | 7,096  |  |          |   |         |   |         |        | 130,688 | 
|LONG-TERM DEBT                       |                                        |                                            |        |        |            |  |        |         |            |   | 200,000    |         |         |            |       |          |              |  |        |        |        |  |         |   |          |   | 200,000 |       
|PENSION LIABILITY                    |                                        |                                            |        |        |            |  |        |         |            |   |           |         |         |            | 17,867 |          |              |  |        |        |        |  |         |   |          |   | 17,867  |       
|DEFERRED TAX LIABILITY               |                                        |                                            |        |        |            |  | 4,644   |         |            |   |           |         |         |            |       |          |              |  |        |        |        |  |         |   |          |   | 4,644   |       
|OTHER LONG-TERM LIABILITIES          |                                        |                                            |        |        |            |  |        |         |            |   |           |         |         |            | 10,664 |          |              |  | 5,720   |        |        |  |         |   |          |   | 16,384  |       
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Liabilities                          |         |        |           |  |         |         | 36         |   |            |         | 225,865 |            |        |          | 130,866      |  |         |        | 12,816 |  |          |   |         |   |         |        | 369,583 | 
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                    
|STOCKHOLDERS EQUITY                
|Common stock                         |                                        |                                            |        |        |            |  |        |         |            |   |           |         |         |            |       |          |              |  | 1,813   |        |        |  | (1,813   | ) |          |   |        |       
|Other Capital                        |                                        |                                            | 251,237 |        |            |  | 251,237 |         |            |   | 251,237    |         |         |            |       |          |              |  | 53,746  |        |        |  | (556,220 | ) |          |   | 251,237 |       
|Unearned Compensation                |                                        |                                            | (3,495  | )      |            |  | (3,495  | )       |            |   | (3,495     | )       |         |            |       |          |              |  |        |        |        |  | 6,990    |   |          |   | (3,495  | )     
|Retained Earnings (Deficit)          |                                        |                                            | 11,813  |        |            |  | 6,733   |         |            |   | 21,106     |         |         |            | 33,171 |          |              |  | (34,929 | )      |        |  | (26,081  | ) |          |   | 11,813  |       
|Accumulated Other Comprehensive Loss |                                        |                                            | (5,854  | )      |            |  | (5,854  | )       |            |   | (9,362     | )       |         |            | (9,362 | )        |              |  |        |        |        |  | 24,578   |   |          |   | (5,854  | )     
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Stockholders Equity                 |         |        | 253,701    |  |         |         | 248,621    |   |            |         | 259,486 |            |        |          | 23,809       |  |         |        | 20,630 |  |          |   | (552,546 | ) |         |        | 253,701 | 
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       
|                                     |                                        | Total Liabilities and Stockholders Equity |         | $      | 253,701    |  |         | $       | 248,657    |   |            | $       | 485,351 |            |        | $        | 154,675      |  |         | $      | 33,446 |  |          | $ | (552,546 | ) |         | $      | 623,284 | 
|                                     |                                        |                                            |         |        |            |  |         |         |            |   |            |         |         |            |        |          |              |  |         |        |       

85



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Financial Position at
December 31, 2004


|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |        |  |          |   |          |   |         |        |         | 
|------------------------------ | ------------------------------------- | ------------------------------------------ | ------- | ------ | --------- |  | ------- | ------- | ---------- |  | ---------- | ------- | ------- | ---------- | ------- | -------- | ------------ | - | ------- | ------ | ------ |  | -------- | - | -------- | - | ------- | ------ | ------- | 
|                               |                                       |                                            |         | Parent |           |  |         |         | Subsidiary |  |            | Non-    |         |            |         |          | Combined     |  
|                               |                                       | Parent                                     |         |        | Guarantor |  |         | Issuers |            |  | Guarantors |         |         | Guarantors |         |          | Eliminations |   |         | Totals |       
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | (Dollars in thousands)                     |        
|ASSETS                        
|CURRENT ASSETS                 |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |        |  |          |   |          |   |         |       
|                               | Cash and Cash Equivalents             |                                            | $       |       |           |  | $       |        |            |  | $          | 39,452  |         |            | $       | 30       |              |   | $       | 7,163  |        |  | $        |  |          |   | $       | 46,645 |        
|                               | Cash, Restricted                      |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         |         |              |   |         | 9,182  |        |  |          |  |          |   |         | 9,182  |        
|                               | Accounts Receivable, Net              |                                            |         |       |           |  |         |        |            |  |            | 92      |         |            |         | 70,485   |              |   |         | 7,420  |        |  |          |  |          |   |         | 77,997 |        
|                               | Accounts Receivable  Intercompany    |                                            |         |       |           |  |         |        |            |  |            | 145,701 |         |            |         | (144,011 | )            |   |         | (1,690 | )      |  |          |  |          |   |         |       |        
|                               | Materials and Supplies                |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         | 44,270   |              |   |         | 2,087  |        |  |          |  |          |   |         | 46,357 |        
|                               | Deferred Tax Asset  Current          |                                            |         |       |           |  |         | 3,916   |            |  |            |        |         |            |         |         |              |   |         |       |        |  |          |  |          |   |         | 3,916  |        
|                               | Other Current Assets                  |                                            |         |       |           |  |         |        |            |  |            | 4,942   |         |            |         | 15,116   |              |   |         | 1,531  |        |  |          |  |          |   |         | 21,589 |        
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Current Assets                       |         |        |          |  |         |         | 3,916      |  |            |         | 190,187 |            |         |          | (14,110      | ) |         |        | 25,693 |  |          |   |         |   |         |        | 205,686 | 
|PROPERTIES-Net                 |                                       |                                            |        |        |           |  |        |         |            |  | 322,052    |         |         |            | 63,450  |          |              |   | 51,180  |        |        |  |         |   |          |   | 436,682 |       
|PENSION ASSETS                 |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            | 15,638  |          |              |   |        |        |        |  |         |   |          |   | 15,638  |       
|INVESTMENT IN SUBSIDIARIES     |                                       |                                            | 100,098 |        |           |  | 100,098 |         |            |  | (39,322    | )       |         |            | 37,319  |          |              |   | 977     |        |        |  | (199,170 | ) |          |   |        |       
|INVESTMENT IN EQUITY INVESTEES |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            | 3,368   |          |              |   | 1,028   |        |        |  |         |   |          |   | 4,396   |       
|OTHER ASSETS                   |                                       |                                            |        |        |           |  |        |         |            |  | (270       | )       |         |            | 5,474   |          |              |   | 71      |        |        |  |         |   |          |   | 5,275   |       
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Assets                               |         | $      | 100,098   |  |         | $       | 104,014    |  |            | $       | 472,647 |            |         | $        | 111,139      |   |         | $      | 78,949 |  |          | $ | (199,170 | ) |         | $      | 667,677 | 
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                              
|LIABILITIES                   
|CURRENT LIABILITIES            |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |        |  |          |   |          |   |         |       
|                               | Accounts Payable                      |                                            | $       |       |           |  | $       |        |            |  | $          | 35      |         |            | $       | 24,505   |              |   | $       | 921    |        |  | $        |  |          |   | $       | 25,461 |        
|                               | Accrued Payroll and Fringe Benefits   |                                            |         |       |           |  |         |        |            |  |            | 9       |         |            |         | 16,736   |              |   |         |       |        |  |          |  |          |   |         | 16,745 |        
|                               | Deferred Revenue                      |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         | 13,760   |              |   |         |       |        |  |          |  |          |   |         | 13,760 |        
|                               | Accrued Claims and Insurance Premiums |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         | 13,127   |              |   |         |       |        |  |          |  |          |   |         | 13,127 |        
|                               | Accrued Interest                      |                                            |         |       |           |  |         |        |            |  |            | 1,114   |         |            |         |         |              |   |         | 159    |        |  |          |  |          |   |         | 1,273  |        
|                               | Current Portion of Long-Term Debt     |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         |         |              |   |         | 2,887  |        |  |          |  |          |   |         | 2,887  |        
|                               | Accrued Reorganization Fees           |                                            |         |       |           |  |         |        |            |  |            |        |         |            |         | 15,603   |              |   |         |       |        |  |          |  |          |   |         | 15,603 |        
|                               | Other Liabilities                     |                                            |         |       |           |  |         |        |            |  |            | 291     |         |            |         | 21,276   |              |   |         | 3,373  |        |  |          |  |          |   |         | 24,940 |        
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Current Liabilities                  |         |        |          |  |         |         |           |  |            |         | 1,449   |            |         |          | 105,007      |   |         |        | 7,340  |  |          |   |         |   |         |        | 113,796 | 
|LONG-TERM DEBT                 |                                       |                                            |        |        |           |  |        |         |            |  | 364,717    |         |         |            | 9,464   |          |              |   | 29,365  |        |        |  |          |   |          |   | 403,546 |       
|PENSION LIABILITY              |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            | 22,120  |          |              |   |        |        |        |  |         |   |          |   | 22,120  |       
|DEFERRED TAX LIABILITY         |                                       |                                            |        |        |           |  | 8,996   |         |            |  |           |         |         |            |        |          |              |   |        |        |        |  |         |   |          |   | 8,996   |       
|OTHER LONG-TERM LIABILITIES    |                                       |                                            |        |        |           |  |        |         |            |  | 154        |         |         |            | 10,291  |          |              |   | 8,676   |        |        |  |         |   |          |   | 19,121  |       
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Liabilities                          |         |        |          |  |         |         | 8,996      |  |            |         | 366,320 |            |         |          | 146,882      |   |         |        | 45,381 |  |          |   |         |   |         |        | 567,579 | 
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                              
|STOCKHOLDERS EQUITY          
|Common Stock                   |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            |        |          |              |   | 1,813   |        |        |  | (1,813   | ) |          |   |        |       
|Members Interest              |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            |        |          |              |   | 10,663  |        |        |  | (10,663  | ) |          |   |        |       
|Other Capital                  |                                       |                                            | 100,098 |        |           |  | 95,018  |         |            |  | 106,327    |         |         |            | (35,743 | )        |              |   | 50,518  |        |        |  | (216,120 | ) |          |   | 100,098 |       
|Retained Deficit               |                                       |                                            |        |        |           |  |        |         |            |  |           |         |         |            |        |          |              |   | (29,426 | )      |        |  | 29,426   |   |          |   |        |       
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Stockholders Equity (Deficit)       |         |        | 100,098   |  |         |         | 95,018     |  |            |         | 106,327 |            |         |          | (35,743      | ) |         |        | 33,568 |  |          |   | (199,170 | ) |         |        | 100,098 | 
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       
|                               |                                       | Total Liabilities and Stockholders Equity |         | $      | 100,098   |  |         | $       | 104,014    |  |            | $       | 472,647 |            |         | $        | 111,139      |   |         | $      | 78,949 |  |          | $ | (199,170 | ) |         | $      | 667,677 | 
|                               |                                       |                                            |         |        |           |  |         |         |            |  |            |         |         |            |         |          |              |   |         |        |       

86



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Cash Flows for the Fiscal Year Ended
December 31, 2005


|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |         |        |   |         |        |   |         |          |         |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | --------------------------------------------------- | ----------------------------------------------------------------------------------- | ------ | --------- | - | - | ------- | ---------- | ------ | ---------- | -------- | ------- | ---------- | -- | ------- | ------------ | ------- | ----- | ------- | ------- | ------ | - | ------- | ------ | - | ------- | -------- | ------- | ------- | -
|                                                     |                                                                                                        |                                                     |                                                                                     | Parent |           |   |   |         | Subsidiary |        |            | Non-     |         |            |    |         | Combined     |        
|                                                     |                                                                                                        | Parent                                              |                                                                                     |        | Guarantor |   |   | Issuers |            |        | Guarantors |          |         | Guarantors |    |         | Eliminations |         |       | Totals  |        
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        | (Dollars in thousands)                              |                                                                                    
|                                                     | Net Income (Loss)                                                                                      |                                                     | $                                                                                   | 11,813 |           |   | $ | 11,813  |            |        | $          | 17,111   |         |            | $  | 33,171  |              |         | $     | (3      | )       |        | $ | (62,092 | )      |   | $       | 11,813   |        
|                                                     | Adjustments to Reconcile Net Income (Loss) to Net Cash (Used in)
    Provided by Operating Activities: |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |         |        |   |         |        |   |         |          |        
|                                                     |                                                                                                        | Depreciation and Amortization                       |                                                                                     |        |          |   |   |         |           |        |            |          | 35,951  |            |    |         | 9,869        |         |       |         | 3,301   |        |   |         |       |   |         |          | 49,121  |        
|                                                     |                                                                                                        | Debt Issuance Cost Amortization                     |                                                                                     |        |          |   |   |         |           |        |            |          | 5,113   |            |    |         |             |         |       |         | 1,668   |        |   |         |       |   |         |          | 6,781   |        
|                                                     |                                                                                                        | Loss on Property Dispositions                       |                                                                                     |        |          |   |   |         |           |        |            |          | (4,344  | )          |    |         | (178         | )       |       |         | (106    | )      |   |         |       |   |         |          | (4,628  | )      
|                                                     |                                                                                                        | Other Operating Activities                          |                                                                                     |        | (11,813   | ) |   |         | (17,955    | )      |            |          | (47,610 | )          |    |         | (7,840       | )       |       |         | 22,426  |        |   |         | 62,092 |   |         |          | (700    | )      
|                                                     |                                                                                                        | Changes in Operating Assets and Liabilities:        |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |         |        |   |         |        |   |         |          |         |        
|                                                     |                                                                                                        |                                                     | Accounts Receivable                                                                 |        |           |  |   |         |            |       |            |          |         | (132       | )  |         |              | (15,795 | )     |         |         | (2,801 | ) |         |        |  |         |          |         | (18,728 | )
|                                                     |                                                                                                        |                                                     | Intercompany Accounts Receivable/ Payable                                           |        |           |  |   |         |            | 11,479 |            |          |         | (7,004     | )  |         |              | (3,091  | )     |         |         | (1,384 | ) |         |        |  |         |          |         |        |  
|                                                     |                                                                                                        |                                                     | Materials and Supplies                                                              |        |           |  |   |         |            |       |            |          |         |           |    |         |              | 4,090   |       |         |         | 469    |   |         |        |  |         |          |         | 4,559   |  
|                                                     |                                                                                                        |                                                     | Accrued Interest                                                                    |        |           |  |   |         |            |       |            |          |         | 4,184      |    |         |              |        |       |         |         | (159   | ) |         |        |  |         |          |         | 4,025   |  
|                                                     |                                                                                                        |                                                     | Other Current Assets                                                                |        |           |  |   |         |            | (729   | )          |          |         | 1,498      |    |         |              | 1,688   |       |         |         | (1,093 | ) |         |        |  |         |          |         | 1,364   |  
|                                                     |                                                                                                        |                                                     | Other Current Liabilities                                                           |        |           |  |   |         |            | (4,608 | )          |          |         | 1,397      |    |         |              | 23,798  |       |         |         | 2,658  |   |         |        |  |         |          |         | 23,245  |  
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        |                                                     | Net Cash (Used in) Provided by Operating Activities before
    Reorganization Items |        |           |  |   |         |            |       |            |          |         | 6,164      |    |         |              | 45,712  |       |         |         | 24,976 |   |         |        |  |         |          |         | 76,852  |  
|                                                     |                                                                                                        | Reorganization Items Paid                           |                                                                                     |        |          |   |   |         |           |        |            |          |        |            |    |         | (13,514      | )       |       |         |        |        |   |         |       |   |         |          | (13,514 | )      
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        |                                                     | Net Cash (Used in) Provided by Operating Activities                                 |        |           |  |   |         |            |       |            |          |         | 6,164      |    |         |              | 32,198  |       |         |         | 24,976 |   |         |        |  |         |          |         | 63,338  |  
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|INVESTING ACTIVITIES                                 |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |         |        |   |         |        |   |         |         
|                                                     | Property Additions                                                                                     |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (34,926  | )       |            |    | (12,127 | )            |         |       | (226    | )       |        |   |        |        |   |         | (47,279  | )      
|                                                     | Investment in Vessel Leasing                                                                           |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (2,500   | )       |            |    |        |              |         |       |        |         |        |   |        |        |   |         | (2,500   | )      
|                                                     | Proceeds from Property Dispositions                                                                    |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 12,686   |         |            |    | 1,929   |              |         |       | 300     |         |        |   |        |        |   |         | 14,915   |        
|                                                     | Net Change in Restricted Cash                                                                          |                                                     |                                                                                     |       |           |   |   |        |            |        |            |         |         |            |    |        |              |         |       | 9,182   |         |        |   |        |        |   |         | 9,182    |        
|                                                     | Other Investing Activities                                                                             |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 106      |         |            |    | (1,901  | )            |         |       | (16     | )       |        |   |        |        |   |         | (1,811   | )      
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        | Net Cash (Used in) Provided by Investing Activities |                                                                                     |        |          |   |   |         |           |        |            |          | (24,634 | )          |    |         | (12,099      | )       |       |         | 9,240   |        |   |         |       |   |         |          | (27,493 | )      
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|FINANCING ACTIVITIES                                 |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |         |        |   |         |        |   |         |         
|                                                     | Long-Term Debt Repayments                                                                              |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (364,836 | )       |            |    | (8,796  | )            |         |       | (33,919 | )       |        |   |        |        |   |         | (407,551 | )      
|                                                     | Revolving Credit Facility Initial Borrowings                                                           |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 170,710  |         |            |    |        |              |         |       |        |         |        |   |        |        |   |         | 170,710  |        
|                                                     | Revolving Credit Facility Repayments                                                                   |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (100,710 | )       |            |    |        |              |         |       |        |         |        |   |        |        |   |         | (100,710 | )      
|                                                     | 2015 Senior Note Initial Borrowings                                                                    |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 200,000  |         |            |    |        |              |         |       |        |         |        |   |        |        |   |         | 200,000  |        
|                                                     | 2015 Senior Note Repayments                                                                            |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (70,000  | )       |            |    |        |              |         |       |        |         |        |   |        |        |   |         | (70,000  | )      
|                                                     | Outstanding Checks                                                                                     |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 20,515   |         |            |    | (11,295 | )            |         |       |        |         |        |   |        |        |   |         | 9,220    |        
|                                                     | Debt Costs                                                                                             |                                                     |                                                                                     |       |           |   |   |        |            |        |            | (13,855  | )       |            |    |        |              |         |       |        |         |        |   |        |        |   |         | (13,855  | )      
|                                                     | Parent Company Capital Contribution                                                                    |                                                     |                                                                                     |       |           |   |   |        |            |        |            | 144,934  |         |            |    |        |              |         |       |        |         |        |   |        |        |   |         | 144,934  |        
|                                                     | Other Financing Activities                                                                             |                                                     |                                                                                     |       |           |   |   |        |            |        |            |         |         |            |    |        |              |         |       | (1,279  | )       |        |   |        |        |   |         | (1,279   | )      
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        | Net Cash Provided by (Used in) Financing Activities |                                                                                     |        |          |   |   |         |           |        |            |          | (13,242 | )          |    |         | (20,091      | )       |       |         | (35,198 | )      |   |         |       |   |         |          | (68,531 | )      
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|Net (Decrease) Increase in Cash and Cash Equivalents |                                                                                                        |                                                     |                                                                                    |        |           |   |  |         |            |        | (31,712    | )        |         |            | 8  |         |              |         | (982  | )       |         |        |  |         |        |   | (32,686 | )       
|Cash and Cash Equivalents at Beginning of Period     |                                                                                                        |                                                     |                                                                                    |        |           |   |  |         |            |        | 39,452     |          |         |            | 30 |         |              |         | 7,163 |         |         |        |  |         |        |   | 46,645  |         
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        
|                                                     |                                                                                                        | Cash and Cash Equivalents at End of Period          |                                                                                     | $      |          |   |   | $       |           |        |            | $        | 7,740   |            |    | $       | 38           |         |       | $       | 6,181   |        |   | $       |       |   |         | $        | 13,959  |        
|                                                     |                                                                                                        |                                                     |                                                                                     |        |           |   |   |         |            |        |            |          |         |            |    |         |              |         |       |         |        

87



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Cash Flows for the Fiscal Year Ended
December 31, 2004


|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |        |         |   |         |          |        |        |         |          |        |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | ------------------------------------------------------ | ------------------------------------------------------------------------- | --------- | - | - | ------- | ----- | ---------- | ---------- | ------ | ------- | ---------- | -------- | -- | ------------ | -------- | ------- | ------ | ------ | ------ | ------- | - | ------- | -------- | ------ | ------ | ------- | -------- | ------ | -
|                                                     |                                                                                                        |                                                        |                                                                           | Parent    |   |   |         |       | Subsidiary |            |        | Non-    |            |          |    |              | Combined |        
|                                                     |                                                                                                        | Parent                                                 |                                                                           | Guarantor |   |   | Issuers |       |            | Guarantors |        |         | Guarantors |          |    | Eliminations |          |         | Totals |       
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |       
|                                                     |                                                                                                        | (Dollars in thousands)                                 |                                                                          
|                                                     | Net Income (Loss)                                                                                      |                                                        | $                                                                         |          |   |   | $       | 4,394 |            |            | $      | 9,474   |            |          | $  | (199,504     | )        |         | $      | 54,044 |        |         | $ | 135,986 |          |        | $      | 4,394   |         
|                                                     | Adjustments to Reconcile Net Income (Loss) to Net Cash Provided
    by (Used in) Operating Activities: |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |        |         |   |         |          |        |        |         |         
|                                                     |                                                                                                        | Depreciation and Amortization                          |                                                                           |           |  |   |         |       |           |            |        |         | 33,876     |          |    |              | 14,942   |         |        |        | 4,357  |         |   |         |         |        |        |         | 53,175   |       
|                                                     |                                                                                                        | Interest Accretion and Debt Issuance Cost Amortization |                                                                           |           |  |   |         |       |           |            |        |         | 9,471      |          |    |              |         |         |        |        | 143    |         |   |         |         |        |        |         | 9,614    |       
|                                                     |                                                                                                        | Loss on Sale of Argentina Assets                       |                                                                           |           |  |   |         |       |           |            |        |         |           |          |    |              |         |         |        |        | 35,197 |         |   |         |         |        |        |         | 35,197   |       
|                                                     |                                                                                                        | (Gain) Loss on Property Dispositions                   |                                                                           |           |  |   |         |       |           |            |        |         | (37        | )        |    |              | 284      |         |        |        |       |         |   |         |         |        |        |         | 247      |       
|                                                     |                                                                                                        | Loss (Gain) on Discharge of Debt with Affiliates       |                                                                           |           |  |   |         |       |           |            |        |         | 92,842     |          |    |              | (92,842  | )       |        |        |       |         |   |         |         |        |        |         |         |       
|                                                     |                                                                                                        | Other Operating Activities                             |                                                                           |           |  |   |         |       | (9,474     | )          |        |         | 191,780    |          |    |              | (66,179  | )       |        |        | 20,840 |         |   |         | (135,986 | )      |        |         | 981      |       
|                                                     |                                                                                                        | Reorganization Items                                   |                                                                           |           |  |   |         |       |           |            |        |         | (157       | )        |    |              | 22,295   |         |        |        | (414   | )       |   |         |         |        |        |         | 21,724   |       
|                                                     |                                                                                                        | Fresh Start Adjustments                                |                                                                           |           |  |   |         |       | 5,080      |            |        |         | 29,965     |          |    |              | 53,503   |         |        |        | (5,518 | )       |   |         |         |        |        |         | 83,030   |       
|                                                     |                                                                                                        | (Gain) Loss on Discharge of Debt                       |                                                                           |           |  |   |         |       |           |            |        |         | (248,200   | )        |    |              | 92,842   |         |        |        |       |         |   |         |         |        |        |         | (155,358 | )     
|                                                     |                                                                                                        | Changes in Operating Assets and Liabilities:           |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |        |         |   |         |          |        |        |         |          |       
|                                                     |                                                                                                        |                                                        | Accounts Receivable                                                       |           |   |  |         |       |            |           |        |         |            | (6       | )  |              |          | (2,359  | )      |        |        | 675     |   |         |          |       |        |         |          | (1,690 | )
|                                                     |                                                                                                        |                                                        | Intercompany Accounts Receivable/ Payable                                 |           |   |  |         |       |            |           |        |         |            | (212,354 | )  |              |          | 217,469 |        |        |        | (5,115  | ) |         |          |       |        |         |          |       |  
|                                                     |                                                                                                        |                                                        | Intercompany Long-term Advances / Payables                                |           |   |  |         |       |            |           |        |         |            | 113,411  |    |              |          | (15,000 | )      |        |        | (98,411 | ) |         |          |       |        |         |          |       |  
|                                                     |                                                                                                        |                                                        | Materials and Supplies                                                    |           |   |  |         |       |            |           |        |         |            |         |    |              |          | (8,437  | )      |        |        | (668    | ) |         |          |       |        |         |          | (9,105 | )
|                                                     |                                                                                                        |                                                        | Accrued Interest                                                          |           |   |  |         |       |            |           |        |         |            | 3,901    |    |              |          |        |        |        |        | 25      |   |         |          |       |        |         |          | 3,926  |  
|                                                     |                                                                                                        |                                                        | Other Current Assets                                                      |           |   |  |         |       |            |           |        |         |            | 229      |    |              |          | 2,166   |        |        |        | 663     |   |         |          | (4,045 | )      |         |          | (987   | )
|                                                     |                                                                                                        |                                                        | Other Current Liabilities                                                 |           |   |  |         |       |            |           |        |         |            | 3,323    |    |              |          | (115    | )      |        |        | 4,581   |   |         |          | 4,045  |        |         |          | 11,834 |  
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|                                                     |                                                                                                        |                                                        | Net Cash Provided by Operating Activities before Reorganization
    Items |           |   |  |         |       |            |           |        |         |            | 27,518   |    |              |          | 19,065  |        |        |        | 10,399  |   |         |          |       |        |         |          | 56,982 |  
|                                                     |                                                                                                        | Reorganization Items Paid                              |                                                                           |           |  |   |         |       |           |            |        |         | 157        |          |    |              | (20,942  | )       |        |        |       |         |   |         |         |        |        |         | (20,785  | )     
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|                                                     |                                                                                                        |                                                        | Net Cash Provided by (Used in) Operating Activities                       |           |   |  |         |       |            |           |        |         |            | 27,675   |    |              |          | (1,877  | )      |        |        | 10,399  |   |         |          |       |        |         |          | 36,197 |  
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|INVESTING ACTIVITIES                                 |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |        |         |   |         |          |        |        |        
|                                                     | Property Additions                                                                                     |                                                        |                                                                           |          |   |   |         |      |            |            |        | (8,724  | )          |          |    | (2,609       | )        |         |        | (1,187 | )      |         |   |        |          |        |        | (12,520 | )       
|                                                     | Proceeds from Sale of Argentina Assets                                                                 |                                                        |                                                                           |          |   |   |         |      |            |            |        | 24,100  |            |          |    |             |          |         |        |       |        |         |   |        |          |        |        | 24,100  |         
|                                                     | Proceeds from Sale of Interest in GMS                                                                  |                                                        |                                                                           |          |   |   |         |      |            |            |        | 14,000  |            |          |    |             |          |         |        |       |        |         |   |        |          |        |        | 14,000  |         
|                                                     | Proceeds from Property Dispositions                                                                    |                                                        |                                                                           |          |   |   |         |      |            |            |        | 3,812   |            |          |    | 1,078        |          |         |        |       |        |         |   |        |          |        |        | 4,890   |         
|                                                     | Net Change in Restricted Cash                                                                          |                                                        |                                                                           |          |   |   |         |      |            |            |        |        |            |          |    |             |          |         |        | (1,428 | )      |         |   |        |          |        |        | (1,428  | )       
|                                                     | Other Investing Activities                                                                             |                                                        |                                                                           |          |   |   |         |      |            |            |        | 483     |            |          |    | (2,297       | )        |         |        |       |        |         |   |        |          |        |        | (1,814  | )       
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|                                                     |                                                                                                        | Net Cash Provided by (Used in) Investing Activities    |                                                                           |           |  |   |         |       |           |            |        |         | 33,671     |          |    |              | (3,828   | )       |        |        | (2,615 | )       |   |         |         |        |        |         | 27,228   |       
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|FINANCING ACTIVITIES                                 |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |        |         |   |         |          |        |        |        
|                                                     | Short-Term Borrowings                                                                                  |                                                        |                                                                           |          |   |   |         |      |            |            |        | 1,693   |            |          |    |             |          |         |        |       |        |         |   |        |          |        |        | 1,693   |         
|                                                     | DIP Credit Facility Repayments                                                                         |                                                        |                                                                           |          |   |   |         |      |            |            |        | (50,000 | )          |          |    |             |          |         |        |       |        |         |   |        |          |        |        | (50,000 | )       
|                                                     | Long-Term Debt Repaid                                                                                  |                                                        |                                                                           |          |   |   |         |      |            |            |        | (4,274  | )          |          |    |             |          |         |        | (2,887 | )      |         |   |        |          |        |        | (7,161  | )       
|                                                     | Outstanding Checks                                                                                     |                                                        |                                                                           |          |   |   |         |      |            |            |        |        |            |          |    | 5,702        |          |         |        |       |        |         |   |        |          |        |        | 5,702   |         
|                                                     | Debt Costs                                                                                             |                                                        |                                                                           |          |   |   |         |      |            |            |        | (953    | )          |          |    |             |          |         |        |       |        |         |   |        |          |        |        | (953    | )       
|                                                     | Other Financing Activities                                                                             |                                                        |                                                                           |          |   |   |         |      |            |            |        |        |            |          |    |             |          |         |        | (1,336 | )      |         |   |        |          |        |        | (1,336  | )       
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|                                                     |                                                                                                        | Net Cash (Used in) Provided by Financing Activities    |                                                                           |           |  |   |         |       |           |            |        |         | (53,534    | )        |    |              | 5,702    |         |        |        | (4,223 | )       |   |         |         |        |        |         | (52,055  | )     
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|Net Increase (Decrease) in Cash and Cash Equivalents |                                                                                                        |                                                        |                                                                          |           |   |   |        |       |            |            | 7,812  |         |            |          | (3 | )            |          |         | 3,561  |        |        |         |  |         |          |        | 11,370 |        
|Cash and Cash Equivalents at Beginning of Period     |                                                                                                        |                                                        |                                                                          |           |   |   |        |       |            |            | 31,640 |         |            |          | 33 |              |          |         | 3,602  |        |        |         |  |         |          |        | 35,275 |        
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       
|                                                     |                                                                                                        | Cash and Cash Equivalents at End of Period             |                                                                           | $         |  |   |         | $     |           |            |        | $       | 39,452     |          |    | $            | 30       |         |        | $      | 7,163  |         |   | $       |         |        |        | $       | 46,645   |       
|                                                     |                                                                                                        |                                                        |                                                                           |           |   |   |         |       |            |            |        |         |            |          |    |              |          |         |        |        |       

88



---



##### 



AMERICAN BARGE LINE COMPANY


NOTES TO CONSOLIDATED STATEMENTS  (Continued)


Combining Statement of Cash Flows for the Fiscal Year Ended
December 26, 2003


|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |        |         |   |        |         |         |        |         |         |         |  
|---------------------------------------------------- | --------------------------------------------------------------------------------------------- | ------------------------------------------------------ | ----------------------------------------------------------------------------------- | --------- | - | ------- | - | ---------- | ---------- | - | ------ | ---------- | ------ | ------- | ------------ | -------- | ------- | ------- | ----- | ------ | ------ | ------- | - | ------ | ------- | ------- | ------ | ------- | ------- | ------- | -
|                                                     |                                                                                               |                                                        |                                                                                     | Parent    |   |         |   | Subsidiary |            |   | Non-   |            |        |         |              | Combined |        
|                                                     |                                                                                               | Parent                                                 |                                                                                     | Guarantor |   | Issuers |   |            | Guarantors |   |        | Guarantors |        |         | Eliminations |          |         | Totals  |      
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |      
|                                                     |                                                                                               | (Dollars in thousands)                                 |                                                                                    
|                                                     | Net Loss                                                                                      |                                                        | $                                                                                   |          |   |         | $ |           |            |   | $      | (61,576    | )      |         | $            | (52,872  | )       |         | $     | (1,370 | )      |         | $ | 54,242 |         |         | $      | (61,576 | )      
|                                                     | Adjustments to Reconcile Net Loss to Net Cash Provided by (Used
    in) Operating Activities: |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |        |         |   |        |         |         |        |         |        
|                                                     |                                                                                               | Depreciation and Amortization                          |                                                                                     |           |  |         |   |            |           |   |        |            | 31,612 |         |              |          | 16,510  |         |       |        | 6,796  |         |   |        |        |         |        |         | 54,918  |        
|                                                     |                                                                                               | Interest Accretion and Debt Issuance Cost Amortization |                                                                                     |           |  |         |   |            |           |   |        |            | 7,844  |         |              |          |        |         |       |        | 1,033  |         |   |        |        |         |        |         | 8,877   |        
|                                                     |                                                                                               | Loss (Gain) on Property Dispositions                   |                                                                                     |           |  |         |   |            |           |   |        |            | 64     |         |              |          | (338    | )       |       |        | (13    | )       |   |        |        |         |        |         | (287    | )      
|                                                     |                                                                                               | Other Operating Activities                             |                                                                                     |           |  |         |   |            |           |   |        |            | 61,108 |         |              |          | (9,176  | )       |       |        | (2,249 | )       |   |        | (53,853 | )       |        |         | (4,170  | )      
|                                                     |                                                                                               | Reorganization Items                                   |                                                                                     |           |  |         |   |            |           |   |        |            |       |         |              |          | 24,344  |         |       |        |       |         |   |        |        |         |        |         | 24,344  |        
|                                                     |                                                                                               | Changes in Operating Assets and Liabilities:           |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |        |         |   |        |         |         |        |         |         |        
|                                                     |                                                                                               |                                                        | Accounts Receivable                                                                 |           |   |        |   |            |            |  |        |            |        | (344    | )            |          |         | (87,911 | )     |        |        | 32,263  |   |        |         | 19,527  |        |         |         | (36,465 | )
|                                                     |                                                                                               |                                                        | Intercompany Accounts Receivable/ Payable                                           |           |   |        |   |            |            |  |        |            |        | (73,018 | )            |          |         | 77,818  |       |        |        | (4,800  | ) |        |         |        |        |         |         |        |  
|                                                     |                                                                                               |                                                        | Intercompany Long-term Advances/ Payables                                           |           |   |        |   |            |            |  |        |            |        | (3,535  | )            |          |         | (2,307  | )     |        |        | 5,842   |   |        |         |        |        |         |         |        |  
|                                                     |                                                                                               |                                                        | Materials and Supplies                                                              |           |   |        |   |            |            |  |        |            |        |        |              |          |         | 2,686   |       |        |        | (405    | ) |        |         |        |        |         |         | 2,281   |  
|                                                     |                                                                                               |                                                        | Accrued Interest                                                                    |           |   |        |   |            |            |  |        |            |        | 6,497   |              |          |         |        |       |        |        | (12     | ) |        |         |        |        |         |         | 6,485   |  
|                                                     |                                                                                               |                                                        | Other Current Assets                                                                |           |   |        |   |            |            |  |        |            |        | 326     |              |          |         | 4,620   |       |        |        | (7,162  | ) |        |         | 699     |        |         |         | (1,517  | )
|                                                     |                                                                                               |                                                        | Other Current Liabilities                                                           |           |   |        |   |            |            |  |        |            |        | 1,725   |              |          |         | 52,700  |       |        |        | (21,007 | ) |        |         | (20,615 | )      |         |         | 12,803  |  
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|                                                     |                                                                                               |                                                        | Net Cash (Used In) Provided by Operating Activities before
    Reorganization Items |           |   |        |   |            |            |  |        |            |        | (29,297 | )            |          |         | 26,074  |       |        |        | 8,916   |   |        |         |        |        |         |         | 5,693   |  
|                                                     |                                                                                               | Reorganization Items Paid                              |                                                                                     |           |  |         |   |            |           |   |        |            |       |         |              |          | (21,759 | )       |       |        |       |         |   |        |        |         |        |         | (21,759 | )      
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|                                                     |                                                                                               |                                                        | Net Cash (Used in) Provided by Operating Activities                                 |           |   |        |   |            |            |  |        |            |        | (29,297 | )            |          |         | 4,315   |       |        |        | 8,916   |   |        |         |        |        |         |         | (16,066 | )
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|INVESTING ACTIVITIES                                 |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |        |         |   |        |         |         |        |        
|                                                     | Property Additions                                                                            |                                                        |                                                                                     |          |   |         |   |           |            |   |        | (6,194     | )      |         |              | (2,077   | )       |         |       | (938   | )      |         |   |       |         |         |        | (9,209  | )      
|                                                     | Proceeds from Property Dispositions                                                           |                                                        |                                                                                     |          |   |         |   |           |            |   |        | 1,369      |        |         |              | 1,039    |         |         |       | 14     |        |         |   |       |         |         |        | 2,422   |        
|                                                     | Net Change in Restricted Cash                                                                 |                                                        |                                                                                     |          |   |         |   |           |            |   |        |           |        |         |              |         |         |         |       | (1,426 | )      |         |   |       |         |         |        | (1,426  | )      
|                                                     | Other Investing Activities                                                                    |                                                        |                                                                                     |          |   |         |   |           |            |   |        |           |        |         |              | (3,603   | )       |         |       | (1     | )      |         |   |       |         |         |        | (3,604  | )      
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|                                                     |                                                                                               |                                                        | Net Cash Used in Investing Activities                                               |           |   |        |   |            |            |  |        |            |        | (4,825  | )            |          |         | (4,641  | )     |        |        | (2,351  | ) |        |         |        |        |         |         | (11,817 | )
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|FINANCING ACTIVITIES                                 |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |        |         |   |        |         |         |        |        
|                                                     | Short-Term Borrowings                                                                         |                                                        |                                                                                     |          |   |         |   |           |            |   |        | 5,146      |        |         |              |         |         |         |       |       |        |         |   |       |         |         |        | 5,146   |        
|                                                     | DIP Credit Facility Borrowings                                                                |                                                        |                                                                                     |          |   |         |   |           |            |   |        | 50,000     |        |         |              |         |         |         |       |       |        |         |   |       |         |         |        | 50,000  |        
|                                                     | Long-Term Debt Repaid                                                                         |                                                        |                                                                                     |          |   |         |   |           |            |   |        | (317       | )      |         |              |         |         |         |       | (2,887 | )      |         |   |       |         |         |        | (3,204  | )      
|                                                     | Outstanding Checks                                                                            |                                                        |                                                                                     |          |   |         |   |           |            |   |        |           |        |         |              | 325      |         |         |       |       |        |         |   |       |         |         |        | 325     |        
|                                                     | Debt Costs                                                                                    |                                                        |                                                                                     |          |   |         |   |           |            |   |        | (3,001     | )      |         |              |         |         |         |       |       |        |         |   |       |         |         |        | (3,001  | )      
|                                                     | Cash Dividends Paid                                                                           |                                                        |                                                                                     |          |   |         |   |           |            |   |        | 2,450      |        |         |              |         |         |         |       | (2,450 | )      |         |   |       |         |         |        |        |        
|                                                     | Other Financing Activities                                                                    |                                                        |                                                                                     |          |   |         |   |           |            |   |        |           |        |         |              |         |         |         |       | (604   | )      |         |   |       |         |         |        | (604    | )      
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|                                                     |                                                                                               |                                                        | Net Cash Provided by (Used in) Financing Activities                                 |           |   |        |   |            |            |  |        |            |        | 54,278  |              |          |         | 325     |       |        |        | (5,941  | ) |        |         |        |        |         |         | 48,662  |  
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|Net Increase (Decrease) in Cash and Cash Equivalents |                                                                                               |                                                        |                                                                                    |           |   |         |  |            |            |   | 20,156 |            |        |         | (1           | )        |         |         | 624   |        |        |         |  |        |         |         | 20,779 |        
|Cash and Cash Equivalents at Beginning of Period     |                                                                                               |                                                        |                                                                                    |           |   |         |  |            |            |   | 11,484 |            |        |         | 34           |          |         |         | 2,978 |        |        |         |   |        |         |         | 14,496 |        
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       
|                                                     |                                                                                               | Cash and Cash Equivalents at End of Period             |                                                                                     | $         |  |         |   | $          |           |   |        | $          | 31,640 |         |              | $        | 33      |         |       | $      | 3,602  |         |   | $      |        |         |        | $       | 35,275  |        
|                                                     |                                                                                               |                                                        |                                                                                     |           |   |         |   |            |            |   |        |            |        |         |              |          |         |         |       |        |       

89



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##### 



AMERICAN BARGE LINE COMPANY


SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                                     |  |                        |       |  |            |   |               |                   |  |         |           |   |  |   |       | 
|------------------------------------ |  | ---------------------- | ----- |  | ---------- | - | ------------- | ----------------- |  | ------- | --------- | - |  | - | ----- | 
|                                     |  | Balance at             |       |  |            |   | Additions to/ |                   |  | Balance |          
|                                     |  | Beginning              |       |  | Charges to |   |               | (Deductions) from |  |         | at End    |  
|                                     |  | of Period              |       |  | Expense    |   |               | Revenue(a)        |  |         | of Period |  
|                                     |  |                        |       |  |            |   |               |                   |  |         |           |  
|                                     |  | (Dollars in thousands) |      
|December 31, 2005:                   |  |                        |       |  |            |   |               |                   |  |         |           |   |  |   |       | 
|Allowance for uncollectible accounts |  | $                      | 1,578 |  |            | $ | 240           |                   |  | $       | (77       | ) |  | $ | 1,741 | 
|December 31, 2004:                   |  |                        |       |  |            |   |               |                   |  |         |           |   |  |   |       | 
|Allowance for uncollectible accounts |  | $                      | 1,634 |  |            | $ | 379           |                   |  | $       | (435      | ) |  | $ | 1,578 | 
|December 26, 2003:                   |  |                        |       |  |            |   |               |                   |  |         |           |   |  |   |       | 
|Allowance for uncollectible accounts |  | $                      | 1,863 |  |            | $ | 364           |                   |  | $       | (593      | ) |  | $ | 1,634 | 






|    |                                                
|--- | -----------------------------------------------
|(a) | Write-off of uncollectible accounts receivable.

90



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##### 








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
    ACCOUNTING AND FINANCIAL DISCLOSURE.






ITEM 9A.     CONTROLS AND
PROCEDURES.


13(a)-15(e)





ITEM 9B.     OTHER
INFORMATION.







PART IV







|         |                                           
|-------- | ------------------------------------------
|ITEM 15. | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

Documents filed as part of this report:




| |                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 1. The Companys Consolidated Audited Financial
    Statements required to be filed as a part of this Annual Report
    are included in Part II, Item 8 Financial
    Statements and Supplementary Data.                                                                                                                                                                                                                                       
|
| | 2. All other financial statement schedules are omitted
    because the required information is not applicable or because
    the information called for is included in the Companys
    Consolidated Audited Financial Statements or the Notes to the
    Consolidated Audited Financial Statements.                                                                                                                                            
|
| | 3. Exhibits  The exhibits listed on the
    accompanying Exhibit Index filed or incorporated by
    references as part of this Annual Report and such
    Exhibit Index is incorporated herein by reference. On the
    Exhibit Index, a ± identifies each management contract or
    compensatory plan or arrangement required to be filed as an
    exhibit to this Annual Report, and such listing is incorporated
    herein by reference.

Exhibits




| |                    
| | -------------------
| | See Exhibit Index

Financial Statement Schedules and other Financial
Statements


91



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##### 



SIGNATURES






| |                            
| | ---------------------------
| | AMERICAN BARGE LINE COMPANY



| |     |                   
| | --- | ------------------
| | By: | /s/ Mark R. Holden

| |                                      
| | -------------------------------------
| |                                      
| | Mark R. Holden                       
| | President and Chief Executive Officer





|                                                 |  |                                                                                       |  |                |  | 
|------------------------------------------------ |  | ------------------------------------------------------------------------------------- |  | -------------- |  | 
|Name                                             |  | Title                                                                                 |  | Date          
|                                                 |  |                                                                                       |  |               
|                                                
|/s/ Mark R. HoldenMark R. Holden                 |  | Director, President and
    Chief Executive Officer
    (Principal Executive Officer) |  | March 28, 2006
|                                                
|/s/ Christopher A.
    BlackChristopher A. Black |  | Senior Vice President,
    Chief Financial Officer
    (Principal Financial Officer)  |  | March 28, 2006
|                                                
|/s/ Paul F. BrotzgePaul F. Brotzge               |  | Vice President,
    Corporate Controller
    (Principal Accounting Officer)           |  | March 28, 2006
|                                                
|/s/ W. Norbert WhitlockW. Norbert Whitlock       |  | Director                                                                              |  | March 28, 2006

92



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##### 



EXHIBIT INDEX


|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|------- | -- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|No.     |    | Description
|        |    |            
|        | 2  | .1          |  | First Amended Joint Plan of Reorganization, dated as of
    October 19, 2004, of American Commercial Lines LLC and
    Affiliated Debtors (Incorporated by reference to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration No. 333-124454,
    filed on April 29, 2005)                                                                                                                                                                                                                 
|        | 3  | .1          |  | Certificate of Incorporation of American Barge Line Company
    (Incorporated by reference to the Form S-4 of American
    Commercial Lines LLC and ACL Finance Corp., Registration No.
    333-124454, filed on April 29, 2005)                                                                                                                                                                                                                                                                                                                         
|        | 3  | .2          |  | By-laws of American Barge Line Company (Incorporated by
    reference to the Form S-4 of American Commercial Lines LLC and
    ACL Finance Corp., Registration No. 333-124454, filed on April
    29, 2005)                                                                                                                                                                                                                                                                                                                                              
|        | 4  | .1          |  | Indenture, dated as of February 11, 2005, among American
    Commercial Lines LLC, ACL Finance Corp., each of the guarantors
    party thereto and Wilmington Trust Company, as trustee
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                                                               
|        | 4  | .2          |  | Registration Rights Agreement, dated as of February 11,
    2005, by and among American Commercial Lines LLC and ACL Finance
    Corp., as Issuers, the guarantors named therein and UBS
    Securities LLC, Banc of America Securities LLC and Merrill
    Lynch, Pierce, Fenner & Smith Incorporated, as initial
    purchasers (Incorporated by reference to the Registration
    Statement on Form S-4 of American Commercial Lines LLC and
    ACL Finance Corp., Registration No. 333-124454, filed on
    April 29, 2005)                         
|        | 4  | .4          |  | Form of Exchange Note (included in Exhibit 4.2)
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                                                                                                                                                                                                       
|        | 10 | .1          |  | Amended and Restated Loan Agreement, dated as of
    February 11, 2005, by and among American Commercial Barge
    Line LLC, American Commercial Lines LLC, American Commercial
    Terminals LLC, Houston Fleet LLC, Jeffboat LLC, Louisiana Dock
    Company LLC, the lenders referred to therein and Bank of
    America, N.A., as administrative agent (Incorporated by
    reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)
|        | 10 | .2±         |  | Employment Agreement, dated as of January 18, 2005, between
    American Commercial Lines Inc. and Mark R. Holden (Incorporated
    by reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)                                                                                                                                                                                                                                         
|        | 10 | .3±         |  | Termination Benefits Agreement, dated as of December 22,
    2003, among American Commercial Lines LLC, American Commercial
    Barge Line LLC, American Commercial Lines International LLC,
    Jeffboat LLC and W. Norb Whitlock (Incorporated by
    reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)                                                                                                                        
|        | 10 | .4±         |  | First Amendment and Supplement to Termination Benefits
    Agreement, dated as of April 30, 2004, among American
    Commercial Lines LLC, American Commercial Barge Line LLC,
    American Commercial Lines International LLC, Jeffboat LLC and
    W. Norb Whitlock (Incorporated by reference to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454, filed on April 29, 2005)                                                                                     
|        | 10 | .5±         |  | Second Amendment and Supplement to Termination Benefits
    Agreement, dated as of January 18, 2005, among American
    Commercial Lines LLC, American Commercial Barge Line LLC,
    American Commercial Lines International LLC, Jeffboat LLC and
    W. N. Whitlock (Incorporated by reference to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454, filed on April 29, 2005)                                                                                    

93



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##### 



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------- | -- | ----------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|No.     |    | Description
|        |    |            
|        | 10 | .6±         |  | Employment Agreement, dated as of February 22, 2005,
    between American Commercial Lines Inc. and Christopher A. Black
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                   
|        | 10 | .7±         |  | Employment Agreement, dated as of February 18, 2005,
    between American Commercial Lines Inc. and Lisa L. Fleming
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                        
|        | 10 | .8±         |  | Employment Agreement, dated as of March 1, 2005, between
    American Commercial Lines Inc. and Nick Fletcher (Incorporated
    by reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)                                                                                                                                  
|        | 10 | .9±         |  | Employment Agreement, dated as of March 22, 2005, between
    American Commercial Lines Inc. and Karl D. Kintzele
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                          
|        | 10 | .10±        |  | Letter Agreement, dated as of August 18, 2004, between
    American Commercial Barge Line LLC and Michael J. Monahan
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                       
|        | 10 | .11±        |  | Management Agreement, dated as of July 21, 2003, between
    American Commercial Lines LLC and Marotta Gund Budd &
    Dzera, LLC (Incorporated by reference to the Registration
    Statement on Form S-4 of American Commercial Lines LLC and
    ACL Finance Corp., Registration No. 333-124454, filed on
    April 29, 2005)                                                                                                              
|        | 10 | .12±        |  | American Commercial Lines Inc. Equity Award Plan for Employees,
    Officers and Directors (Incorporated by reference to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454, filed on April 29, 2005)                                                                                                                                                     
|        | 10 | .13±        |  | Form of American Commercial Lines Inc. Restricted Stock Award
    Agreement (under the American Commercial Lines Inc. Equity Award
    Plan for Employees, Officers and Directors) (Incorporated by
    reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)                                                             
|        | 10 | .14±        |  | Form of American Commercial Lines Inc. Incentive Stock Option
    Agreement (under the American Commercial Lines Inc. Equity Award
    Plan for Employees, Officers and Directors) (Incorporated by
    reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)                                                             
|        | 10 | .15         |  | Security Side Letter Agreement, dated as of December 10,
    2004, among American Commercial Lines LLC, American Commercial
    Terminals LLC, American Commercial Barge Line LLC, Louisiana
    Generating, LLC and NRG New Roads Holdings LLC (Incorporated by
    reference to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454, filed on April 29, 2005)
|        | 10 | .16         |  | Deed of Trust, dated as of December 10, 2004, among
    American Commercial Terminals LLC, NRG New Roads Holdings LLC
    and Louisiana Generating, LLC (Incorporated by reference to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454, filed on April 29, 2005)                                                                                        
|        | 10 | .17         |  | Lease, dated as of December 10, 2004, between American
    Commercial Terminals LLC and NRG New Roads Holdings LLC
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)                                                                                                                         
|        | 10 | .18         |  | Terminal Option Agreement, dated as of December 10, 2004,
    between American Commercial Terminals LLC and NRG New Roads
    Holdings LLC (Incorporated by reference to the Registration
    Statement on Form S-4 of American Commercial Lines LLC and
    ACL Finance Corp., Registration No. 333-124454, filed on
    April 29, 2005)                                                                                                     

94



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##### 



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|------- | -- | ----------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|No.     |    | Description
|        |    |            
|        | 10 | .19         |  | Barge and Tug Option Agreement, dated as of December 10,
    2004, between American Commercial Lines LLC and NRG New Roads
    Holdings LLC (Incorporated by reference to the Registration
    Statement on Form S-4 of American Commercial Lines LLC and
    ACL Finance Corp., Registration No. 333-124454, filed on
    April 29, 2005)                                                                                                                                                                 
|        | 10 | .20         |  | Conditional Assignment and Assumption of Lease, dated as of
    December 10, 2004, between American Commercial Terminals
    LLC and NRG New Roads Holdings LLC (relating to that certain
    Lease, dated as of August 17, 1976, between Burlington
    Northern Inc. and ACBL Western, Inc.) (Incorporated by reference
    to the Registration Statement on Form S-4 of American
    Commercial Lines LLC and ACL Finance Corp., Registration
    No. 333-124454, filed on April 29, 2005)              
|        | 10 | .21         |  | Conditional Assignment and Assumption of Lease, dated as of
    December 10, 2004, between American Commercial Terminals
    LLC and NRG New Roads Holdings LLC (relating to that certain
    Lease, dated as of June 12, 1985, between the City of
    St. Louis and American Commercial Terminals LLC)
    (Incorporated by reference to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454, filed on April 29,
    2005)
|        | 10 | .22±        |  | Employment Agreement, dated as of May 9, 2005, between
    American Commercial Lines Inc. and Jerry Linzey (Incorporated by
    reference to Amendment No. 1 to the Registration Statement
    on Form S-4 of American Commercial Lines LLC and ACL
    Finance Corp., Registration No. 333-124454 filed on
    May 27, 2005)                                                                                                                                                                              
|        | 10 | .23±        |  | Letter Agreement, dated as of April 4, 2005, between
    American Commercial Lines Inc. and William L. Schmidt
    (Incorporated by reference to Amendment No. 1 to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454 filed on May 27, 2005)                                                                                                                                                                          
|        | 10 | .24±        |  | Restricted Stock Award Agreement, dated as of January 18,
    2005, between American Commercial Lines Inc. and W. Norb
    Whitlock (Incorporated by reference to Amendment No. 1 to
    the Registration Statement on Form S-4 of American
    Commercial Lines LLC and ACL Finance Corp., Registration
    No. 333-124454 filed on May 27, 2005)                                                                                                                                                         
|        | 10 | .25±        |  | Incentive Stock Option Agreement, dated as of January 18,
    2005, between American Commercial Lines Inc. and W. Norb
    Whitlock (Incorporated by reference to Amendment No. 1 to
    the Registration Statement on Form S-4 of American
    Commercial Lines LLC and ACL Finance Corp., Registration
    No. 333-124454 filed on May 27, 2005)                                                                                                                                                         
|        | 10 | .26±        |  | Nonqualified Stock Option Agreement, dated as of
    January 18, 2005, between American Commercial Lines Inc.
    and W. Norb Whitlock (Incorporated by reference to
    Amendment No. 1 to the Registration Statement on
    Form S-4 of American Commercial Lines LLC and ACL Finance
    Corp., Registration No. 333-124454 filed on May 27,
    2005)                                                                                                                                                  
|        | 10 | .27±        |  | American Commercial Lines Inc. 2005 Stock Incentive Plan
    (Incorporated by reference to Amendment No. 1 to the
    Registration Statement on Form S-4 of American Commercial
    Lines LLC and ACL Finance Corp., Registration
    No. 333-124454 filed on May 27, 2005)                                                                                                                                                                                                                                
|        | 10 | .28±        |  | Form of American Commercial Lines Inc. Restricted Stock Award
    Agreement (under the American Commercial Lines Inc. 2005 Stock
    Incentive Plan) (Incorporated by reference to Amendment
    No. 1 to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454 filed on May 27, 2005)                                                                                                                                        
|        | 10 | .29±        |  | Form of American Commercial Lines Inc. Incentive Stock Option
    Agreement (under the American Commercial Lines Inc. 2005 Stock
    Incentive Plan) (Incorporated by reference to Amendment
    No. 1 to the Registration Statement on Form S-4 of
    American Commercial Lines LLC and ACL Finance Corp.,
    Registration No. 333-124454 filed on May 27, 2005)                                                                                                                                        
|        | 10 | .30         |  | Amendment to Agreements, dated as of May 20, 2005, by and
    among American Commercial Lines LLC, Jeffboat LLC, American
    Commercial Terminals LLC, Houston Fleet LLC, American Commercial
    Barge Line LLC, Louisiana Dock Company LLC, the lenders referred
    to therein and Bank of America, N.A., as administrative agent
    (Incorporated by reference to the Form S-1 of American
    Commercial Lines, Inc. filed on July 19, 2005)                                                        

95



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##### 



|        |    |             |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|------- | -- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |            
|No.     |    | Description
|        |    |            
|        | 10 | .31±        |  | Amendment to Equity Award Plan for Employees, Officers and
    Directors (Incorporated by reference to the Form S-1 of
    American Commercial Lines, Inc. filed on July 19, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 10 | .32         |  | 2005 Annual Incentive Plan (Incorporated by reference to the
    Form S-1 of American Commercial Lines, Inc. filed on
    July 19, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .33±        |  | Letter Agreement, dated as of November 15, 2005, between
    American Commercial Lines Inc. and Michael P. Ryan (Incorporated
    by reference to the Form 10-K of American Commercial Lines,
    Inc. filed on March 24, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 10 | .34±        |  | Letter Agreement, dated as of September 13, 2005, between
    American Commercial Lines Inc. and Richard A. Mitchell
    (Incorporated by Reference to the Company Quarterly Report
    Form 10-Q filed on November 11, 2005)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 10 | .35±        |  | Release and Waiver of Employment and Termination of Employment
    Claims, dated as of December 4, 2005 between American
    Commercial Lines Inc. and Martin K. Pepper (Incorporated by
    reference to the Form 10-K of American Commercial Lines,
    Inc. filed on March 24, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .36         |  | Amendment No. 2 to Agreements dated October 13, 2005,
    to the Amended and Restated Loan Agreement dated
    February 11, 2005 by and among American Commercial Barge
    Line LLC, American Commercial Lines LLC, American Commercial
    Terminals LLC, Houston Fleet LLC, Jeffboat LLC and Louisiana
    Dock Company LLC (collectively, the Borrowers), the
    financial institutions party thereto (the Lenders),
    Bank of America, N.A., as administrative agent and as collateral
    agent for the Lenders (the Agent), UBS Securities
    LLC, as the syndication agent, the CIT Group/Business Credit,
    Wells Fargo Foothill and Merrill Lynch Capital, as the
    co-documentation agents, and American Barge Line Company, ACBL
    Liquid Sales LLC, ACL Finance Corp., American Commercial Lines
    Inc., American Commercial Lines International LLC, American
    Commercial Logistics LLC, American Commercial Terminals-Memphis
    LLC, Commercial Barge Line Company, Orinoco TASA LLC and Orinoco
    TASV LLC, each as a guarantor and collectively with the
    Borrowers, the Obligated Parties, and to the Amended
    and Restated Security Agreement dated February 11, 2005 by
    and among the Obligated Parties and the Agent (Incorporated
    herein by reference to Exhibit 10.1 to the Companys
    Report on Form 8-K filed on October 18, 2005)
|        | 10 | .38±        |  | Form of Restricted Stock Unit Agreement for non-executives of
    American Commercial Lines Inc. (Incorporated herein by reference
    to Exhibit 10.2 to the Companys Current Report on
    Form 8-K filed on January 20, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|        | 10 | .39±        |  | Form of Stock Option Agreement for non-executives of American
    Commercial Lines Inc. (Incorporated herein by reference to
    Exhibit 10.3 to the Companys Current Report on
    Form 8-K filed on January 20, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|        | 10 | .40±        |  | American Commercial Lines Inc. Restricted Stock Unit Deferral
    Plan (Incorporated herein by reference to Exhibit 10.4 to
    the Companys Current Report on Form 8-K filed on
    February 7, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|        | 10 | .41±        |  | Form of Stock Option Agreement for executives of American
    Commercial Lines Inc. (Incorporated herein by reference to
    Exhibit 10.1 to the Companys Current Report on
    Form 8-K filed on February 7, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|        | 10 | .42±        |  | Form of Restricted Stock Unit Agreement for executives of
    American Commercial Lines Inc. (Incorporated herein by reference
    to Exhibit 10.2 to the Companys Current Report on
    Form 8-K filed on February 7, 2006)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|        | 31 | .1          |  | CEO Certification Pursuant to Section 302(a) of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 31 | .2          |  | CFO Certification Pursuant to Section 302(a) of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|        | 32 | .1          |  | CEO Certification Pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|        | 32 | .2          |  | CFO Certification Pursuant to Section 906 of the
    Sarbanes-Oxley Act of 2002                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

96