8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

August 27, 2008 (August 18, 2008)
Date of Report (Date of earliest event reported)

Fedders Corporation

(Exact name of Registrant as specified in its charter)

Delaware	1-8831	22-2572390
(State or other jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification Number)

505 Martinsville Road
Liberty Corner, New Jersey 07938-0813

(Address of principal executive offices, including zip code)

(908) 604-8686

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01 Other Events

On August 18, 2008, the Company filed its unaudited monthly operating report as of and for the month ended June 30, 2008 (the “Monthly Report”) with the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) (In re: Fedders North America, Inc., et. al., Case No. 07-11176 (BLS)). A copy of the Monthly Report is attached hereto as Exhibit 99.1 and incorporated herein by such reference.

The Monthly Report was prepared solely for the purpose of complying with the monthly reporting requirements of, and in a format consistent with, the requirements of the Office of the United States Trustee for the United States Bankruptcy Court for the District of Delaware in connection with the bankruptcy proceedings. The information in the Monthly Report is subject to further review and potential adjustments. The Monthly Report has not been prepared in accordance with generally accepted accounting principles and has not been audited or reviewed by independent accountants. Moreover, the Monthly Report contains information for a period that is shorter or different from those contained in periodic reports filed with the Securities and Exchange Commission (the “SEC”) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). While the Monthly Report provides current information for the period presented, as required by the Bankruptcy Court and applicable rules, it is prepared in a format different from the Company’s prior periodic reports filed with the SEC and, as a result, the Company believes it is extremely difficult to make apt or meaningful comparisons between the Monthly Report and the Company’s previous periodic reports on Forms 10-K and 10-Q.

The Company cautions readers not to place undue reliance upon the information contained in the Monthly Report. The information set forth in the Monthly Report should not be viewed as representative of the Company’s expected operating results for future periods. Readers should also note that the Monthly Report sets forth that the Company’s equity has no book value. The Company has previously disclosed and again advises readers that the Company currently does not expect that there will be any distribution in the pending bankruptcy cases to the Company’s shareholders on account of their equity interests.

Under the Exchange Act, the SEC issued Exchange Act release 9660 providing guidance for Exchange Act reporting companies in bankruptcy. Consistent with that release and as the Company has previously disclosed, in light of limitations on the Company’s liquidity and personnel, the Company is unable to continue filing periodic reports under the Exchange Act without unreasonable effort and expense because (i) the Company’s regular accounting staff has been reduced as a result of the bankruptcy filing and (ii) the cost of having an independent registered public accounting firm perform the requisite reviews and audits coupled with the cost of complying with the requirements of the Sarbanes-Oxley Act of 2002 is prohibitive. As a result and also as the Company has previously disclosed, the Company hereafter intends to file with the SEC, under cover of current reports on Form 8-K, in lieu of filing Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, copies of the Company’s monthly operating reports

required to be submitted to the Bankruptcy Court. In accordance with General Instructions B.2 and B.6 of Form 8-K, the Monthly Reports are, and any future such monthly operating reports will be, furnished for informational purposes only and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor will such information be deemed incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended (the “Securities Act”), except as expressly set forth by specific reference in such a filing. The information set forth in this Item 9 also will not be deemed an admission as to the materiality of any information required to be disclosed solely to satisfy the requirements of Regulation FD.

Forward-Looking Statements

This Current Report on Form 8-K and the Monthly Report may include certain forward-looking statements within the meaning of the Exchange Act and the Securities Act. Such statements are subject to various risks and uncertainties previously described in the Company’s periodic reports on Forms 10-K, 10-Q and 8-K as filed with the SEC, and certain assumptions regarding the Company’s reorganization under the auspices of the Bankruptcy Court. These statements, therefore, are subject to significant business, judicial, economic and competitive risks, uncertainties and potential contingencies, including as described in this Monthly Report, many of which are beyond the Company’s control. Consequently, such statements should not be deemed to be representations or warranties by the Company regarding the realization of these matters. Actual results may differ materially from the results contemplated in any forward-looking statement. The results of the Company’s reorganization and any possible distributions are subject to various material factors, including, without limitation: matters affecting the timing and amounts of expected distributions to the Company’s creditors, the Company’s ability to obtain court approval with respect to various motions before the Bankruptcy Court or to confirm a plan of reorganization or liquidation or uncertainties caused by third party motions, the ability of the Company to maximize asset value and to control expenses, and potential adverse developments with respect to the Company’s business and activities. These and other factors, including the terms of any reorganization plan ultimately approved by the Bankruptcy Court, can affect the value of the various pre-petition liabilities of the Company and of the Company’s equity securities and accordingly, the Company urges interested parties reviewing this report to exercise appropriate caution with respect to existing or future investments in any such liabilities or securities or the use of any such reports for these purposes.

The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.

Item 9.01 Financial Statements and Exhibits

Exhibits

99.1 Monthly Operating Report as of and for the month ended June 30, 2008

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

FEDDERS CORPORATION
By:	/s/ Kent E. Hansen
	Name:	Kent E. Hansen
	Title:	Executive Vice President

Dated: August 27, 2008

Index to Exhibits

Exhibits

Exhibit 99.1 Monthly Operating Report as of and for the month ended June 30, 2008

EX-99.1

Exhibit 99.1

UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE

In re FEDDERS NORTH AMERICA, INC., et al.           Case No.: 07-11176

Reporting Period: June 2008

MONTHLY OPERATING REPORT
file with the court and submit a copy to United States Trustee within 45 days after end of month

Submit copy of report to any official committee appointed in the case.

		Document	Explanation
REQUIRED DOCUMENTS	Form No.	Attached	Attached
Schedule of Cash Receipts and Disbursements	MOR-1	X
Bank Reconciliations (or copies of debtor’s bank reconciliations)	MOR-1a		X
Schedule of Professional Fees Paid	MOR-1b	X
Copies of bank statements			X
Cash disbursements journals			X
Statement of Operations	MOR-2	X
Balance Sheet	MOR-3	X
Status of Post petition Taxes	MOR-4		X
Copies of IRS Form 6123 or payment receipt			X
Copies of tax returns filed during reporting period			X
Summary of Unpaid Post petition Debts	MOR-4	X
Listing of aged accounts payable		X
Accounts Receivable Reconciliation and Aging	MOR-5	X
Debtor Questionnaire	MOR-5	X

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

/s/  Robert Laurent Signature of Debtor	August 18, 2008 Date
Signature of Joint Debtor	Date
Signature of Authorized Individual*	Date
Robert Laurent	Chief Financial Officer
Printed Name of Authorized Individual	Title of Authorized Individual

* Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtoris a partnership; a manager or member if debtor is a limited liability company.

NOTES TO MONTHLY OPERATING REPORTS

Presentation

     The Debtors’ monthly operating reports have not been audited, are subject to change and have been prepared as required by the Office of the United States Trustee. The monthly operating reports have not been prepared to provide financial information specifically relating to any outstanding securities of the Debtors, or any of their respective affiliates. The results of operations reflected in these reports do not, and are not intended to provide a complete report regarding the results of operations of Fedders Corporation and subsidiaries on a consolidated basis for the period reported.

Intercompany Transactions

     Intercompany transactions as presented in these reports are subject to possible timing differences resulting from the timing of balance sheet recognition by each entity.

     The Monthly Operating Reports generally reflect the results of operations and financial position of the Debtors and ongoing arrangements between Fedders Corporation and one or more of the Debtors, or between the Debtors, in the same manner as such arrangements were reported historically. The treatment of these arrangements may be subject to challenge in the bankruptcy case. Such arrangements, and the manner in which they are treated or required to be reported in the bankruptcy case, could have a material impact on the respective assets, liabilities and results of operations of Fedders Corporation and/or one or more of the Debtors and any financial presentation thereof.

Income Taxes

     The Debtors account for income taxes on a consolidated basis for purposes of consolidated reporting and do not account for income taxes by legal entity. Accordingly, the provision for income taxes and the income tax asset or liability in the accompanying statement of operations and balance sheet, respectively, do not necessarily reflect the entity’s current income tax position for the period being presented.

Pre-Petition Liabilities

     As a result of certain First Day Orders entered by the Bankruptcy Court, the Debtors were authorized to pay certain pre-petition liabilities. The liabilities, which primarily included wages, salaries and other compensation and certain fiduciary taxes, are no longer subject to compromise. Pre-petition liabilities, as presented on the Balance Sheet (MOR-3), exclude these liabilities.

Reporting Entities

     This Monthly Operating Report reflects

1.	Fedders Holding Company and Fedders Investment Corporation are inactive entities;
2.	Operating results for Island Metal Fabricating Inc. are included with the operating results for Fedders Islandaire, Inc. Fedders Islandaire was sold in January, 2008;
3.	Fedders Addison Company, Inc. was sold in February, 2008;
4.	Operating Results for Trion, Inc. include Envirco Corporation and Herrmidifier Company, Inc. Trion and its affiliates was sold in June, 2008 and;
5.	“Total Company” results include both Debtor and Non-Debtor entities.

CONTENTS

I.	Statement of Operations
II.	Balance Sheet
III.	Schedule of Cash Receipts and Disbursements
IV.	Disbursement Summary by Legal Entity
V.	Schedule of Aged Accounts Receivable
VI.	Schedule of Aged Accounts Payable
VII.	Schedule of Advisory Fees Paid
VIII.	Book Balance Detail for Cash Accounts
IX.	Debtor Questionnaire
X.	Attestations Regarding Monthly Operating Report

Fedders North America Inc., et al.
I. Statement of Operations for the Month Ending 06/30/2008
($000’s)

	Fedders North			Columbia Specialties			Emerson Quiet			Envirco			Eubank Coil			Fedders Addison			Fedders			Fedders Holding
	America, Inc.			Inc.			Kool Corporation			Corporation			Company			Company, Inc.			Corporation			Company, Inc.			Fedders Inc.
	07-11176			07-11177			07-11178			07-11179			07-11180			07-11181			07-11182			07-11183			07-11184
Gross Sales	$	—		$	—		$	16		$	—		$	—		$	—		$	—		$	—		$	—
Sales-Intercompany		—			—			—			—			—			—			—			—			—
Sales Deductions		—			—			(22	)		—			—			(7	)		—			—			—
Net Sales	$	—		$	—		$	(6	)	$	—		$	—		$	(7	)	$	—		$	—		$	—
Standard Cost of Sales		—			—			581			—			—			58			—			—			—
Gross Profit		—			—			(587	)		—			—			(65	)		—			—			—
% of Net Sales		0.0	%		0.0	%		83.3	%		0.0	%		-60.3	%		9.4	%		0.0	%		0.0	%		16.3	%
Operating Expenses:
Administrative		4			—			26			—			—			28			317			—			1
Advertising		—			—			—			—			—			—			—			—			—
Selling		—			—			9			—			—			41			—			—			1
Shipping & Warehousing		—			—			67			—			4			3			—			—			—
Research & development		5			—			18			—			—			30			—			—			—
Amortization Expense		—			—			—			—			—			—			—			—			—
Goodwill Impairment		—			—			—			—			—			—			—			—			—
Total Operating Expenses		9			—			120			—			4			102			317			—			2
Advisory costs		—			—			—			—			—			—			885			—			—
Restructuring Expense		—			—			—			—			—			—			—			—			—
Operating Income (Loss)		(9	)		—			(707	)		—			(4	)		(167	)		(1,202	)		—			(2	)
Corporate Overhead		—			—			—			—			—			—			—			—			—
Net Use Assets Charge		—			—			—			—			—			—			—			—			—
Unconsolidated JV income(loss)		—			—			—			—			—			—			—			—			—
Partner’s JV Interest		—			—			—			—			—			—			—			—			—
Net Interest Expense		46			—			—			—			(12	)		—			630			—			—
Other Expense(inc)		761			—			(779	)		—			—			(84	)		(763	)		—			1
Management Fees(inc)		—			—			—			—			—			—			—			—			—
Income before income taxes		(816	)		—			72			—			8			(83	)		(1,069	)		—			(3	)
Income Taxes		—			—			—			—			—			—			—			—			—
Net income(loss)	$	(816	)	$	—		$	72		$	—		$	8		$	(83	)	$	(1,069	)	$	—		$	(3	)
EBITDA	$	11		$	—		$	(705	)	$	—		$	(1	)	$	(167	)	$	(317	)	$	—		$	(2	)

Fedders North America Inc., et al.
I. Statement of Operations for the Month Ending 06/30/2008
($000’s)

				Fedders
	Fedders			Investment			Fedders Islandaire,			Fedders Outlet,			Herrmidifier			Island Metal			Rotorex Company
	International, Inc.			Corporation			Inc.			Inc.			Company			Fabricating, Inc.			Inc.			Trion, Inc.			Total			Total
	07-11185			07-11186			07-11187			07-11188			07-11189			07-11190			07-11191			07-11192			Debtors			Company
Gross Sales	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	917		$	933		$	1,826
Sales-Intercompany		—			—			—			—			—			—			—			—			—			—
Sales Deductions		—			—			—			—			—			—			—			(18	)		(47	)		(143	)
Net Sales	$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	899		$	886		$	1,683
Standard Cost of Sales		—			—			—			—			—			—			—			719			1,358			2,343
Gross Profit		—			—			—			—			—			—			—			180			(472	)		(660	)
% of Net Sales		0.0	%		0.0	%		22.2	%		0.0	%		0.0	%		0.0	%		0.0	%		7.0	%		6.0	%		-39.2	%
Operating Expenses:
Administrative		—			—			—			—			—			—			65			86			527			813
Advertising		—			—			—			—			—			—			—			6			6			9
Selling		—			—			—			—			—			—			—			81			132			218
Shipping & Warehousing		—			—			—			—			—			—			—			15			89			102
Research & development		—			—			—			—			—			—			—			34			87			129
Amortization Expense		—			—			—			—			—			—			—			4			4			8
Goodwill Impairment		—			—			—			—			—			—			—			—			—			—
Total Operating Expenses		—			—			—			—			—			—			65			226			845			1,279
Advisory costs		—			—			—			—			—			—			—			—			885			885
Restructuring Expense		—			—			—			—			—			—			—			—			—			2,048
Operating Income (Loss)		—			—			—			—			—			—			(65	)		(46	)		(2,202	)		(4,872	)
Corporate Overhead		—			—			—			—			—			—			—			—			—			—
Net Use Assets Charge		—			—			—			—			—			—			—			—			—			—
Unconsolidated JV income(loss)		—			—			—			—			—			—			—			—			—			—
Partner’s JV Interest		—			—			—			—			—			—			—			—			—			—
Net Interest Expense		—			—			—			—			—			—			—			(14	)		650			656
Other Expense(inc)		—			—			(1,058	)		—			—			—			—			8,852			6,930			9,826
Management Fees(inc)		—			—			—			—			—			—			—			—			—			—
Income before income taxes		—			—			1,058			—			—			—			(65	)		(8,884	)		(9,782	)		(15,354	)
Income Taxes		—			—			—			—			—			—			—			—			—			—
Net income(loss)	$	—		$	—		$	1,058		$	—		$	—		$	—		$	(65	)	$	(8,884	)	$	(9,782	)	$	(15,354	)
EBITDA	$	—		$	—		$	—		$	—		$	—		$	—		$	(35	)	$	(24	)	$	(1,240	)	$	(1,833	)

Fedders North America, Inc. et al.
II. Balance Sheet as of 06/30/2008
($000’s)

	Fedders North			Columbia		Emerson Quiet			Envirco		Eubank Coil			Fedders Addison		Fedders			Fedders Holding
	America, Inc.			Specialties Inc.		Kool Corporation			Corporation		Company			Company, Inc.		Corporation			Company, Inc.		Fedders Inc.
	07-11176			07-11177		07-11178			07-11179		07-11180			07-11181		07-11182			07-11183		07-11184
ASSETS:
Cash	$	—		$	—	$	8		$	—	$	—		$	1	$	29,722		$	—	$	214
Marketable Securities		—			—		—			—		—			—		—			—		—
Gross Receivables		—			—		1,864			—		—			—		—			—		303
Less:Allowance		—			—		(401	)		—		—			—		—			—		(250	)
Net Accounts Receivable		—			—		1,463			—		—			—		—			—		53
Inventories:
Finished goods		66			—		625			—		—			—		—			—		—
Work in progress		—			—		—			—		—			—		—			—		—
Raw Materials		99			—		—			—		—			—		—			—		—
Service Parts		—			—		545			—		—			—		—			—		—
Supplies		—			—		—			—		—			—		—			—		—
Freight & Duty		—			—		—			—		—			—		—			—		—
In-Transit Inventory		—			—		5			—		—			—		—			—		—
Gross Inventory		165			—		1,175			—		—			—		—			—		—
Less inventory reserves		(165	)		—		(835	)		—		—			—		—			—		—
Net Inventory		—			—		340			—		—			—		—			—		—
Deferred Tax Benefit		—			—		—			—		—			—		—			—		—
Asset held for sale		—			—		—			—		—			—		—			—		—
Prepaids/Other assets		22			—		184			—		—			300		3,787			—		20
Total Current Asset		22			—		1,995			—		—			301		33,509			—		287
Investment in Subsidiaries 1		7,213			—		7,867			—		—			—		26,931			—		—
Property,Plant & Equipment
Land		80			—		—			—		—			—		—			—		—
Land Improvement		291			—		—			—		45			—		—			—		—
Buildings		7,808			—		—			—		1,008			—		—			—		—
Leasehold improvement		—			—		47			—		—			—		1,262			—		—
Machinery & Equipment		5,528			—		275			—		347			—		884			—		7
Furniture & Fixture		44			—		464			—		132			—		1,228			—		87
Auto & Trucks		16			—		—			—		—			—		—			—		—
Jigs & Dies		6,330			—		—			—		5			—		—			—		—
Construction in Progress		—			—		—			—		—			—		—			—		—
Gross P.P.& E.		20,097			—		786			—		1,537			—		3,374			—		94
Accumulated Depreciation		(17,199	)		—		(730	)		—		(875	)		—		(3,370	)		—		(95	)
Net P.P.& E.		2,898			—		56			—		662			—		4			—		(1	)
Other long term assets:
Deferred Tax Benefit		—			—		—			—		—			—		—			—		—
Goodwill		—			—		—			—		—			—		—			—		—
Other Intangibles		8			—		—			—		—			—		—			—		—
Other Assets		3,190			—		—			—		2			—		14,022			—		1
Total Assets	$	13,331		$	—	$	9,918		$	—	$	664		$	301	$	74,466		$	—	$	287

¹ Does not reflect eliminations between the Debtor entities

Fedders North America, Inc. et al.
II. Balance Sheet as of 06/30/2008
($000’s)

	Fedders North			Columbia			Emerson Quiet Kool								Fedders Addison						Fedders Holding
	America, Inc.			Specialties Inc.			Corporation			Envirco Corporation		Eubank Coil Company			Company, Inc.			Fedders Corporation			Company, Inc.		Fedders Inc.
	07-11176			07-11177			07-11178			07-11179		07-11180			07-11181			07-11182			07-11183		07-11184
LIABILITIES & EQUITY:
Short Term Notes	$	—		$	—		$	—		$	—	$	—		$	—		$	750		$	—	$	—
Current Portion of L/T debt		—			—			—			—		—			—			—			—		—
Accounts Payable		88			—			158			—		13			—			2,708			—		37
Accrued Expenses:		—			—			—			—		—			—			—			—		—
Salaries & Wages		104			—			63			—		7			—			1,801			—		2
Payroll Taxes		—			—			1			—		(1	)		—			—			—		—
Total Accrued Expenses		93			—			577			—		35			—			8,660			—		20
Other Current Liabilities		—			1			—			—		—			1			2			—		—
Total Current Liab-Post Petition		285			1			799			—		54			1			13,921			—		59
Intercompany Accounts		(3,573	)		(12	)		(11,780	)		—		(2,097	)		(12,340	)		63,812			—		(526	)
Long Term Debt		—			—			—			—		—			—			—			—		—
Other L/T Liabilities:
Deferred Income Taxes		—			—			—			—		—			—			—			—		—
Other L/T Liabilities		—			—			—			—		—			—			—			—		—
Pre-Petition Intercompany Acccounts		(406,938	)		5,613			60,562			—		30,081			7,353			262,850			—		(18,727	)
Liabilities Subject to Compromise		160,792			86			10,387			—		325			2,674			62,301			—		3,749
Total Liabilities		(249,434	)		5,688			59,968			—		28,363			(2,312	)		402,884			—		(15,445	)
Stockholders Equity:
Preferred Stock		—			—			—			—		—			—			411			—		—
Common Stock		5			—			—			—		1			—			3,188			—		—
Class A Stock		—			—			—			—		—			—			4,346			—		—
Class B Stock		—			—			—			—		—			—			739			—		—
Warrants-Common Stock		—			—			—			—		—			—			1,000			—		—
Paid in Capital		47,018			—			(4,842	)		—		999			7,814			(34,461	)		—		4,842
Retained Earning-prior		214,170			(5,698	)		(40,042	)		—		(29,283	)		(7,736	)		(254,087	)		—		10,800
Current Month Net Income(Loss)		1,572			10			(5,260	)		—		584			2,535			(12,522	)		—		73
Dividends Declared		—			—			—			—		—			—			—			—		—
Treasury Stock Sold		—			—			—			—		—			—			(11,412	)		—		—
Deferred Compensation		—			—			—			—		—			—			—			—		—
Treasury stock		—			—			—			—		—			—			(25,620	)		—		—
Currency Translation Adjustment		—			—			94			—		—			—			—			—		17
Total Stockholder’s equity		262,765			(5,688	)		(50,050	)		—		(27,699	)		2,613			(328,418	)		—		15,732
Total liabilities & equity	$	13,331		$	—		$	9,918		$	—	$	664		$	301		$	74,466		$	—	$	287

Fedders North America, Inc. et al.
II. Balance Sheet as of 06/30/2008
($000’s)

	Fedders			Fedders Investment		Fedders Islandaire,		Fedders		Herrmidifier		Island Metal		Rotorex
	International, Inc.			Corporation		Inc.		Outlet, Inc.		Company		Fabricating, Inc.		Company Inc.			Trion, Inc.		Total			Total
	07-11185			07-11186		07-11187		07-11188		07-11189		07-11190		07-11191			07-11192		Debtors			Company
ASSETS:
Cash	$	97		$	—	$	2	$	—	$	—	$	—	$	—		$	—	$	30,044		$	30,965
Marketable Securities		—			—		—		—		—		—		—			—		—			—
Gross Receivables		444			—		—		—		—		—		—			—		2,611			8,969
Less:Allowance		(9	)		—		—		—		—		—		—			—		(660	)		(5,524	)
Net Accounts Receivable		435			—		—		—		—		—		—			—		1,951			3,445
Inventories:
Finished goods		42			—		—		—		—		—		—			—		733			3,088
Work in progress		—			—		—		—		—		—		—			—		—			813
Raw Materials		72			—		—		—		—		—		—			—		171			11,347
Service Parts		5			—		—		—		—		—		—			—		550			646
Supplies		—			—		—		—		—		—		—			—		—			87
Freight & Duty		—			—		—		—		—		—		—			—		—			1
In-Transit Inventory		—			—		—		—		—		—		—			—		5			40
Gross Inventory		119			—		—		—		—		—		—			—		1,459			16,022
Less inventory reserves		(151	)		—		—		—		—		—		—			—		(1,151	)		(14,009	)
Net Inventory		(32	)		—		—		—		—		—		—			—		308			2,013
Deferred Tax Benefit		—			—		—		—		—		—		—			—		—			2,240
Asset held for sale		—			—		—		—		—		—		—			—		—			(514	)
Prepaids/Other assets		869			—		—		—		—		—		34			—		5,216			5,141
Total Current Asset		1,369			—		2		—		—		—		34			—		37,519			43,290
Investment in Subsidiaries 1		21,144			—		—		—		—		—		—			—		63,155			1
Property,Plant & Equipment
Land		—			—		—		—		—		—		468			—		548			548
Land Improvement		—			—		—		—		—		—		903			—		1,239			1,239
Buildings		—			—		—		—		—		—		10,770			—		19,586			21,042
Leasehold improvement		—			—		—		—		—		—		—			—		1,309			1,968
Machinery & Equipment		4			—		—		—		—		—		4,112			—		11,157			26,036
Furniture & Fixture		41			—		—		—		—		—		889			—		2,885			3,611
Auto & Trucks		—			—		—		—		—		—		—			—		16			857
Jigs & Dies		—			—		—		—		—		—		321			—		6,656			6,656
Construction in Progress		—			—		—		—		—		—		—			—		—			15
Gross P.P.& E.		45			—		—		—		—		—		17,463			—		43,396			61,972
Accumulated Depreciation		(44	)		—		—		—		—		—		(12,712	)		—		(35,025	)		(53,442	)
Net P.P.& E.		1			—		—		—		—		—		4,751			—		8,371			8,530
Other long term assets:
Deferred Tax Benefit		—			—		—		—		—		—		—			—		—			—
Goodwill		—			—		—		—		—		—		—			—		—			—
Other Intangibles		—			—		—		—		—		—		—			—		8			8
Other Assets		283			—		—		—		—		—		—			1		17,499			18,065
Total Assets	$	22,797		$	—	$	2	$	—	$	—	$	—	$	4,785		$	1	$	126,552		$	69,894

¹ Does not reflect eliminations between the Debtor entities

Fedders North America, Inc. et al.
II. Balance Sheet as of 06/30/2008
($000’s)

	Fedders			Fedders Investment		Fedders Islandaire,			Fedders		Herrmidifier		Island Metal		Rotorex
	International, Inc.			Corporation		Inc.			Outlet, Inc.		Company		Fabricating, Inc.		Company Inc.			Trion, Inc.			Total			Total
	07-11185			07-11186		07-11187			07-11188		07-11189		07-11190		07-11191			07-11192			Debtors			Company
LIABILITIES & EQUITY:
Short Term Notes	$	—		$	—	$	—		$	—	$	—	$	—	$	—		$	—		$	750		$	6,705
Current Portion of L/T debt		—			—		—			—		—		—		—			—			—			119
Accounts Payable		2			—		—			—		—		—		2			—			3,008			34,887
Accrued Expenses:		—			—		—			—		—		—		—			—			—			—
Salaries & Wages		341			—		—			—		—		—		—			—			2,318			3,301
Payroll Taxes		10			—		—			—		—		—		—			—			10			(352	)
Total Accrued Expenses		5			—		(112	)		—		—		—		18			—			9,296			13,556
Other Current Liabilities		—			—		—			—		—		—		1			—			5			138
Total Current Liab-Post Petition		358			—		(112	)		—		—		—		21			—			15,387			58,354
Intercompany Accounts		223			—		(924	)		—		—		—		429			(8,864	)		24,348			(1,593	)
Long Term Debt		—			—		—			—		—		—		—			—			—			1,089
Other L/T Liabilities:
Deferred Income Taxes		—			—		—			—		—		—		—			—			—			(452	)
Other L/T Liabilities		—			—		—			—		—		—		—			—			—			(32	)
Pre-Petition Intercompany Acccounts		58,233			—		5,073			—		—		—		2,759			21,390			28,249			1,596
Liabilities Subject to Compromise		1,254			—		4,188			—		—		—		—			1,930			247,686			247,686
Total Liabilities		60,068			—		8,225			—		—		—		3,209			14,456			315,670			306,648
Stockholders Equity:
Preferred Stock		—			—		—			—		—		—		—			—			411			21
Common Stock		—			—		5			—		—		—		—			1,522			4,721			975
Class A Stock		—			—		—			—		—		—		—			—			4,346			—
Class B Stock		—			—		—			—		—		—		—			—			739			25
Warrants-Common Stock		—			—		—			—		—		—		—			—			1,000			1,000
Paid in Capital		3,410			—		—			—		—		—		62,350			814			87,944			109,277
Retained Earning-prior		(40,665	)		—		6,035			—		—		—		(60,382	)		(8,993	)		(215,881	)		(264,576	)
Current Month Net Income(Loss)		(1	)		—		(14,263	)		—		—		—		(392	)		(8,167	)		(35,831	)		(51,633	)
Dividends Declared		—			—		—			—		—		—		—			247			247			—
Treasury Stock Sold		—			—		—			—		—		—		—			—			(11,412	)		(11,412	)
Deferred Compensation		—			—		—			—		—		—		—			—			—			—
Treasury stock		—			—		—			—		—		—		—			—			(25,620	)		(24,276	)
Currency Translation Adjustment		(15	)		—		—			—		—		—		—			122			218			3,845
Total Stockholder’s equity		(37,271	)		—		(8,223	)		—		—		—		1,576			(14,455	)		(189,118	)		(236,754	)
Total liabilities & equity	$	22,797		$	—	$	2		$	—	$	—	$	—	$	4,785		$	1		$	126,552		$	69,894

Fedders North America, Inc. et al.
III. Schedule of Receipts and Disbursements for the Month Ending 06/30/2008
($ in 000’s)

						Emerson Quiet
	Fedders North			Columbia		Kool		Envirco			Eubank Coil		Fedders Addison		Fedders		Fedders Holding
	America, Inc.			Specialties Inc.		Corporation		Corporation			Company		Company, Inc.		Corporation		Company, Inc.		Fedders, Inc. 1
	07-11176			07-11177		07-11178		07-11179			07-11180		07-11181		07-11182		07-11183		07-11184
Receipts and Disbursements
Collections	$	—		$	—	$	213	$	—		$	—	$	533	$	27,814	$	—	$	—
Operating Disbursements
Employee Costs		13			—		24		4			—		167		216		—		1
China Purchases-Ningbo (Intercompany)		—			—		—		—			—		—		—		—		—
China Purchases-Suzhou (Intercompany)		—			—		—		—			—		—		—		—		—
China Transfers-Qingpu (Intercompany)		—			—		—		—			—		—		—		—		—
Material Costs		—			—		—		—			—		—		—		—		—
Freight/Duty		0			—		3		3			—		—		2		—		—
Utilities		19			—		—		—			—		—		2		—		—
Machinery & Equip		—			—		—		—			—		—		2		—		—
Facility Costs		48			—		—		3			—		—		17		—		—
IT/Telecom		4			—		0		0			—		—		51		—		—
Insurance		—			—		7		—			—		—		6		—		—
Taxes		—			—		—		—			—		—		—		—		—
Other		2			—		32		—			—		—		150		—		0
		85			—		66		11			—		167		446		—		1
Operating Cash Flow		(85	)		—		147		(11	)		—		366		27,368		—		(1	)
Non-Operating Disbursements
Interest/ Fees		—			—		—		—			—		—		—		—		—
Restructuring Fees		—			—		—		—			—		—		1,208		—		19
Deposits		—			—		—		—			—		—		—		—		—
		—			—		—		—			—		—		1,208		—		19
Net Cash Generated (Used)	$	(85	)	$	—	$	147	$	(11	)	$	—	$	366	$	26,160	$	—	$	(20	)

¹ Collections for Fedders Inc. are captured in Emerson Quiet Kool Corporation

Fedders North America, Inc. et al.
III. Schedule of Receipts and Disbursements for the Month Ending 06/30/2008
($ in 000’s)

			Fedders
	Fedders		Investment		Fedders		Fedders		Herrmidifier		Island Metal		Rotorex
	International, Inc.		Corporation		Islandaire, Inc.		Outlet, Inc.		Company		Fabricating, Inc.		Company Inc.		Trion, Inc.		Total
	07-11185		07-11186		07-11187		07-11188		07-11189		07-11190		07-11191		07-11192		Debtors
Receipts and Disbursements
Collections	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	1,109	$	29,669
Operating Disbursements
Employee Costs		—		—		—		—		—		—		—		290		715
Material Costs		—		—		—		—		—		—		—		—		—
China Purchases-Ningbo (Intercompany)		—		—		—		—		—		—		—		255		255
China Purchases-Suzhou (Intercompany)		—		—		—		—		—		—		—		—		—
China Transfers-Qingpu (Intercompany)		—		—		—		—		—		—		—		188		188
Freight/Duty		—		—		—		—		—		—		—		85		94
Utilities		—		—		—		—		—		—		—		1		22
Machinery & Equip		—		—		—		—		—		—		—		7		9
Facility Costs		—		—		—		—		—		—		—		4		71
IT/Telecom		—		—		—		—		—		—		—		1		56
Insurance		—		—		—		—		—		—		—		—		13
Taxes		—		—		—		—		—		—		—		1		1
Other		—		—		—		—		—		—		—		26		210
		—		—		—		—		—		—		—		858		1,635
Operating Cash Flow		—		—		—		—		—		—		—		251		28,034
Non-Operating Disbursements
Interest		—		—		—		—		—		—		—		—		—
Restructuring Fees		—		—		—		—		—		—		—		—		1,227
Deposits		—		—		—		—		—		—		—		—		—
		—		—		—		—		—		—		—		—		1,227
Net Cash Generated (Used)	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	251	$	26,807

Fedders North America, Inc. et al.
IV. Disbursements by Legal Entity for the Month Ending 06/30/2008
($000’s)

				Cumulative Post-
				Petition
Legal Entity	Case Number	Jun-08		Disbursements
Fedders North America, Inc.	07-11176	$	85	$	2,839
Columbia Specialties, Inc. 1	07-11177		—		—
Emerson Quiet Kool Corporation	07-11178		66		5,089
Envirco Corporation 2	07-11179		11		270
Eubank Coil Company	07-11180		—		599
Fedders Addison Company, Inc.	07-11181		167		9,824
Fedders Corporation	07-11182		1,654		23,004
Fedders Holding Company, Inc. 1	07-11183		—		—
Fedders, Inc.	07-11184		20		753
Fedders International, Inc. 1	07-11185		—		—
Fedders Investment Corporation 1	07-11186		—		—
Fedders Islandaire, Inc.	07-11187		—		12,053
Fedders Outlet, Inc. 1	07-11188		—		—
Herrmidifier Company, Inc. 2	07-11189		—		—
Island Metal Fabricating, Inc. 3	07-11190		—		—
Rotorex Company, Inc.	07-11191		—		—
Trion, Inc.	07-11192		858		18,843
Total Debtor Disbursements		$	2,862	$	73,275

1	Inactive Entity with no operating activity
2	Included within Trion, Inc.
3	Included within Fedders Islandaire, Inc.

Fedders North America, Inc. et al.
V. Accounts Receivable Reconciliation and Aging as of 6/30/2008
($000’s)

		Days Old
Legal Entity	Case Number	less than 30			31-60		61-90			91+		Total
Fedders North America, Inc.	07-11176	$	—		$	—	$	—		$	—	$	—
Columbia Specialties, Inc.	07-11177		—			—		—			—		—
Emerson Quiet Kool Corporation	07-11178		(505	)		7		(36	)		2,398		1,864
Envirco Corporation.	07-11179		—			—		—			—		—
Eubank Coil Company	07-11180		—			—		—			—		—
Fedders Addison Company, Inc.	07-11181		—			—		—			—		—
Fedders Corporation	07-11182		—			—		—			—		—
Fedders Holding Company, Inc.	07-11183		—			—		—			—		—
Fedders, Inc.	07-11184		(10	)		1		—			312		303
Fedders International, Inc. 2	07-11185		—			—		—			444		444
Fedders Investment Corporation	07-11186		—			—		—			—		—
Fedders Islandaire, Inc.	07-11187		—			—		—			—		—
Fedders Outlet, Inc.	07-11188		—			—		—			—		—
Herrmidifier Company, Inc.	07-11189		—			—		—			—		—
Island Metal Fabricating, Inc.	07-11190		—			—		—			—		—
Rotorex Company, Inc.	07-11191		—			—		—			—		—
Trion, Inc.	07-11192		—			—		—			—		—
Net Accounts Receivable of the Debtors		$	(515	)	$	8	$	(36	)	$	3,154	$	2,611
Other Reconciling items 1													—
Gross Accounts Receivable												$	2,611

1	Includes adjusting journal entries, deposits collected during month, certain accounts with credit balances and A/R balances related to IAQ Residential and IAQ Canada
2	Related to licensing fees

Fedders North America, Inc. et al.
VI. Summary of Unpaid Post Petition Debts as of 6/30/2008
($000’s)

		Days Old
Legal Entity	Case Number	less than 30		31-60			61-90		91+		Total
Fedders North America, Inc.	07-11176	$	31	$	(5	)	$	—	$	—	$	26
Columbia Specialties, Inc.	07-11177		—		—			—		—		—
Emerson Quiet Kool Corporation	07-11178		9		(2	)		5		50		62
Envirco Corporation.	07-11179		—		—			—		—		—
Eubank Coil Company	07-11180		—		—			—		—		—
Fedders Addison Company, Inc.	07-11181		—		—			—		—		—
Fedders Corporation	07-11182		1,198		44			14		1,440		2,696
Fedders Holding Company, Inc.	07-11183		—		—			—		—		—
Fedders, Inc.	07-11184		6		(0	)		1		10		16
Fedders International, Inc.	07-11185		—		—			—		2		2
Fedders Investment Corporation	07-11186		—		—			—		—		—
Fedders Islandaire, Inc.	07-11187		—		—			—		—		—
Fedders Outlet, Inc.	07-11188		—		—			—		—		—
Herrmidifier Company, Inc.	07-11189		—		—			—		—		—
Island Metal Fabricating, Inc.	07-11190		—		—			—		—		—
Rotorex Company, Inc.	07-11191		—		—			—		—		—
Trion, Inc.	07-11192		—		—			—		—		—
Total Aging		$	1,244	$	37		$	20	$	1,502	$	2,802
Other Reconciling Items 1												206
Total Unpaid Post Petition Debts											$	3,008

¹ Relates to AP checks outstanding, open Purchase Orders, accrued AP and adjusting journal entries

Fedders North America, Inc. et al.
VII. Advisory Fees and Expenses Paid for the Month Ending 06/30/2008
($000’s)

Vendor	6/30/08		Cumulative 1
Saul Ewing	$	387	$	2,739
Cole Schotz		190		419
Barrier Advisors 2		103		907
Alvarez and Marsal 3		203		2,650
Sitirck And Company		1		112
Chanin Advisors/ Duff & Phelps		—		598
Buck Consulting		—		74
UHY		38		196
Weil, Gotshal & Manges 2		—		1,065
Richards Layton & Finger		—		42
Mesirow Financial		100		804
Brown Rudnick		45		521
Lowenstein Sandler		51		272
Greenberg Traurig		4		57
Haynes & Boone		—		249
Logan & Company		86		421
Fasken Martineau Dumoulin		19		85
US Trustee		—		114
Other		—		196
Total Advisory Fees Paid	$	1,227	$	11,521

1	Cumulative advisory fee payments since 8/22/2007
2	Paid pursuant to Credit Agreement
3	Alvarez and Marsal retained under Section 363 of the Bankruptcy Code

Fedders North America, Inc. et al.
VIII. Book Balance Cash Listing & Bank Reconciliation as of 06/30/2008
($000’s)

Case #	Legal Entity	Institution	Account #	Description	06/30 Book Balance		Reconciled	Comment
07-11176	Fedders North America, Inc.	Bank of America	4426398732	Misc. Deposits	$	—	7/21/2008	Active
07-11178	Emerson Quiet Kool Corporation	JPMorgan Chase	000000601224090	AP	US$-		7/21/2008	Active
07-11178	Emerson Quiet Kool Corporation	Bank of America	4426439109	Credit Card		8	7/21/2008	To be closed in Aug.
07-11178	Emerson Quiet Kool Corporation				$	8
07-11180	Eubank Coil Company	Mellon Bank	786234	Depository - Lockbox	$	—	7/21/2008	In process of closing
07-11180	Eubank Coil Company 1				$	-
07-11181	Fedders Addison Company, Inc.	Mellon Bank	078-6234		$	—	2/15/2008	In process of closing
07-11181	Fedders Addison Company, Inc.			Petty Cash		1	2/15/2008
07-11181	Fedders Addison Company, Inc. 2				$	1
07-11176	Fedders North America, Inc.	JPMorgan Chase	601224090	Disbursement		—	7/30/2008	Active
07-11176	Fedders North America, Inc.	American Beacon	222103510	Investment		—	7/30/2008	Inactive - Open
07-11176	Fedders North America, Inc.	Institutional Cash Distributors	752-80027	Investment		—	7/30/2008	Active
07-11176	Fedders North America, Inc.	Reserve Funds	75225813	Investment		—	7/30/2008	Inactive - Open
07-11176	Fedders North America, Inc.	SRS Institution	4032400017426	Investment		—	7/30/2008	Inactive - Open
07-11176	Fedders North America, Inc.	Treasury Point	5621330	Investment		—	7/30/2008	Inactive - Open
07-11180	Eubank Coil Company	Mellon Bank	786234	Depository - Lockbox		—	7/30/2008	In process of closing
07-11180	Eubank Coil Company	Mellon Bank	1045294	Depository - Lockbox Fees		5	7/30/2008	In process of closing
07-11182	Fedders Corporation	Bank of America	4426398732	Concentration		52	7/30/2008	Active
07-11182	Fedders Corporation	Bank of America	4426398745	Depository - Lockbox		0	7/30/2008	To be closed in July
07-11182	Fedders Corporation	Bank of America	4426398981	Payroll		95	7/30/2008	Active
07-11182	Fedders Corporation	Bank of America	4426470061	Utility Escrow Acct		35	7/30/2008	Active
07-11182	Fedders Corporation	JPMorgan Chase	9102676799	Main Controlled Disbursement Acct		10	7/30/2008	Active
07-11182	Fedders Corporation	JPMorgan Chase	601224124	Disbursement		—	7/30/2008	Active
07-11182	Fedders Corporation	Institutional Cash Distributors	752-80099	Investment		29,416	7/30/2008	Active
07-11182	Fedders Corporation	Fidelity	80208846	Investment		—	7/30/2008	Inactive - Open
07-11182	Fedders Corporation	Merrill Lynch	32503274	Investment		—	7/30/2008	Inactive - Open
07-11182	Fedders Corporation	Janus	881235094	Investment		—	7/30/2008	Inactive - Open
07-11182	Fedders Corporation	Standard Life	Feda100037	Investment		—	7/30/2008	To be closed in Aug.
07-11182	Fedders Corporation	Wachovia London	4852166	Depository Euro Account		54	7/30/2008	Active
07-11182	Fedders Corporation	Wachovia London	4852026	Depository -US$		4	7/30/2008	Active
07-11182	Fedders Corporation	Wachovia London	4852036	Depository - British Pounds		49	7/30/2008	Active
07-11184	Fedders Inc.	Royal Bank of Canada	7270001777	Depository -US$		1	7/30/2008	Active
07-11192	Trion, Inc.	JPMorgan Chase	601829013	Disbursement		—	7/30/2008	To be closed in Aug.
07-11182	Fedders Corporation			Petty Cash		0	7/30/2008
07-11182	Fedders Corporation Total				$	29,722
07-11184	Fedders, Inc.	Royal Bank of Canada	1664200	Depository Ca$		—	7/21/2008	Active
07-11184	Fedders, Inc.	Royal Bank of Canada	1663400	Depository - Ca$		212	7/21/2008	Active
07-11184	Fedders, Inc.	Royal Bank of Canada	9431	Payroll Ca$		—	7/21/2008	To be closed in Aug.
07-11184	Fedders, Inc.	Royal Bank of Canada	4033577	Depository -US$		2	7/21/2008	Active
	Fedders, Inc.			Petty Cash		0	7/21/2008
07-11184	Fedders Inc.				$	214
07-11185	Fedders International, Inc.	Wachovia London	4854026	Depository -US$		80	7/7/2008	Active
07-11185	Fedders International, Inc.	Wachovia London	4854166	Depository Account		17	7/7/2008	Active
07-11185	Fedders International, Inc.				$	97
07-11187	Fedders Islandaire, Inc.			Petty Cash		2	1/18/2008
07-11187	Fedders Islandaire, Inc. 3				$	2
					$	30,044

1	Business was sold on 1/18/08
2	Business was sold on 2/15/08
3	Business was sold on 1/18/08
4	Business was sold on 6/19/08

Fedders North America, Inc. et al.
IX. Debtor Qurestionnaire for the Period Ending 6/30/2008

Must be completed each month	Yes	No
1. Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		X
2. Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		X
3. Have all post petition tax returns been timely filed? If no, provide an explanation below.	X
4. Are workers compensation, general liability and other necessary insurance coverage’s in effect? If no, provide an explanation below.	X
5. Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.	X 1

¹ New investment account was opened for the segregated Supplemental Retirment Plan assets

X. ATTESTATIONS REGARDING MONTHLY OPERATING REPORT

     I submit this attestation in connection with the attached Monthly Operating Report:

     1. To the best of my knowledge, for June, 2008, Fedders North America, Inc. has completed the reconciliation of all bank accounts for which bank statements have been received as of the date of this report. As part of such reconciliation, the ending balance reflected on each bank statement was reconciled to the Debtor’s accounting records.

     2. To the best of my knowledge, Fedders North America, Inc., et al., has made all requisite post-petition tax payments on a timely basis, except where noted in this report.

Name: Robert Laurent

Title: Chief Financial Officer