T R O U B L E D C O M P A N Y R E P O R T E R Thursday, March 3, 2005, Vol. 9, No. 52 Headlines AINSWORTH LUMBER: Wants to Buy Chatham Forest's OSB Mill Project AINSWORTH LUMBER: Earns $53.1 Million of Net Income in 4th Quarter AIRCRAFT FINANCE: Moody's Junks $71 Million Class C Notes AMERCO: Daniel Mullen Replaces James Grogan as Director AMERCO: Appoints Charles Bayer to Audit Committee AMERICAN ENERGY: Lack of Revenue Casts Doubt on Firm's Viability AMERIQUEST MORTGAGE: S&P Puts Low-B Ratings on Nine Cert. Classes AMERUS GROUP: Fitch Says Litigation May Have Neg. Credit Impact ATA AIRLINES: Sharing Business Plan with Committee This Week BANC OF AMERICA: Moody's Puts Low-B Ratings on Classes B-4 & B-5 BEAR STEARNS: Increased Default Chances Cue S&P to Review Ratings BJT ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors BROADBAND OFFICE: Court Approves Priority Wage Claims Compromise C-BASS: Fitch Affirms Low-B Ratings on Five Series 1999-3 Classes CABLE PLASTICS: Case Summary & 21 Largest Unsecured Creditors CATHOLIC CHURCH: Tuscon Judge Balks at Hamilton Rabinovitz's Fees CEMEX S.A.: Assumes $5.8B RMC Debt & Pays $4.1B in Acquisition CHARTER COMMS: Equity Deficit Widens to $4.4 Billion at Dec. 31 CHARTER COMMS: Derek Chang Resigns as Interim Co-CFO CHURCH OF GREATER WORKS: Voluntary Chapter 11 Case Summary COMMERCIAL MORTGAGE: S&P Puts Cert. Classes H & J on CreditWatch CONTINENTAL AIRLINES: Reports 73.9% Load Factor in February 2005 CONTINENTAL AIRLINES: Unions Transmit Tentative Pacts to Members CONVERSENT COMMS: S&P Assigns B Rating to $225M Secured Facility CREDIT SUISSE: Fitch Assigns Low-B Rating on Six Mortgage Certs. DB COMPANIES: General Unsecured Creditors Eye 50-80% Distribution DELTA PETROLEUM: S&P Rates Planned $150M Sr. Unsec. Notes at B- DELTA PETROLEUM: Moody's Puts B3 Rating on $150MM Sr. Unsec. Notes DIMON INC: Lowers Fiscal Year 2005 Earnings Guidance DLJ MORTGAGE: Fitch Assigns BB+ Rating on $26.9MM Mortgage Cert. ENRON CORP: JPMorgan Calculates Administrative Claim to be $115.9M EXIDE TECH: Expects to Complete Private Financing Before March 31 EXIDE TECH: Moody's Junks $350 Million Senior Unsecured Notes EYE CARE CENTERS: Finalizes $450 Million Sale by Moulin Int'l. FAIRFAX FINANCIAL: Fitch Assigns B+ Rating on Senior Debt FC CBO: Moody's Junks Three Note Classes After Review FIBERMARK INC: Plan Confirmation Hearing Continued to March 7 FIRACHA CONSTRUCTION: Case Summary & Largest Unsecured Creditor FIRST VIRTUAL: RADVISION Buys All Assets for $7.15 Million in Cash FREMONT HOME: Moody's Puts Ba2 Rating on $11.893M Class M10 Certs. G-STAR: Fitch Affirms BB- Rating on $7,659,366 Class D Notes GARDEN RIDGE: Disclosure Statement Hearing Set for Mar. 29 GARDEN RIDGE: Has Until April 1 to Make Lease-Related Decisions GLASS GROUP INC: Case Summary & 20 Largest Unsecured Creditors GLATFELTER CO: S&P Downgrades Ratings to BB+ After Reassessment GP CAPITAL: S&P Upgrades Rating on Class G Certificates to BB GREIF INC: Declares Quarterly Cash Dividends on Common Shares GSR MORTGAGE: Fitch Puts Low-B Ratings on 2 Mortgage Certificates HAWAII COMMUNITY: Case Summary & 4 Largest Unsecured Creditors HEALTHESSENTIALS: Files for Chapter 11 Protection in Kentucky HEALTHESSENTIALS: Case Summary & 40 Largest Unsecured Creditors HEALTH NET: S&P Slices Rating on $400M Senior Unsec. Notes to BB HERITAGE NETWORKS: Heritage Media Completes Management Buyout HOLLY ENERGY: Completes $120 Million Alon USA Acquisition INGLES MARKETS: S&P Downgrades Ratings to BB- After Review INTERSTATE BAKERIES: Brandes Investment Discloses 7% Equity Stake JUNCTION LIMESTONE: Case Summary & 20 Largest Unsecured Creditors KING PHARMACEUTICALS: S&P Puts BB Rating on CreditWatch Negative LAS VEGAS SANDS: Elects Irwin Chafetz to Board of Directors LEVI STRAUSS: S&P Rates Proposed $550M Senior Unsec. Notes at B- LIBERTY GROUP: Inks New $280 Million Bank Loan with Wells Fargo MANITOWOC COMPANY: Names Mary Ellen Bowers as Corporate Officer MEDMIRA INC: Issuing Up to $1.6 Million of Convertible Debentures MILLENNIUM ASSISTED: Taps Mehr LaFrance as Special Counsel MORGAN STANLEY: Fitch Upgrades $21.2 Million Mortgage Cert. to BB+ MORGAN STANLEY: Fitch Junks Three Mortgage Certificate Classes NORTH AMERICAN ENERGY: S&P's Low-B Ratings Still on CreditWatch PACIFIC LUMBER: Gets Waiver from Lenders Until March 11 PHIBRO ANIMAL: Redeems Palladium's Series C Preferred Stock R.J. TOWER: S&P Says Senior Secured Lenders Will Be Paid in Full SALOMON BROTHERS: Fitch Junks Two 2000-C2 Certificate Classes SANDITEN INVESTMENTS: Gable & Gotwals Approved as Bankr. Counsel SANDITEN INVESTMENTS: Section 341(a) Meeting Slated for Mar. 30 SECURITY INTELLIGENCE: Liquidity Woes May Trigger Bankruptcy SHAW GROUP: Completes $450M Bond Financing for Three Units SOUNDVIEW HOME: Moody's Puts Ba3 Rating on $3.148MM Class B Certs. SQUALICUM INVESTMENTS: Case Summary & 20 Largest Unsec. Creditors STELCO INC: Rejects All Proposals & Will Sell Some Subsidiaries STELCO INC: Unions Support Restructuring Except Subsidiaries' Sale STRATEGY FIRST: Inks Acquisition Pact with Silverstar Holdings SYNIVERSE TECHNOLOGIES: Moody's Upgrades Rating After IPO TOM'S FOODS: Heico Holdings Proposes $15 Million Cash Investment TOPSAIL CBO: Moody's Confirms B2 Rating on $5MM Class C Sub. Notes TOWER AUTOMOTIVE: Can Fully Access $725 Million DIP Financing TOWER AUTOMOTIVE: S&P Withdraws D Corporate Credit & Debt Ratings TRUSTREET PROPERTIES: Moody's Pares Rating on Preferred Stock TUBETEC INC: Case Summary & 20 Largest Unsecured Creditors UAL CORP: Fallon Holds $1.9 Million of Allowed Secured Claim UNISPHERE WASTE: Files Notice of Intention Under BIA in Canada WABASH ENVIRONMENTAL: Case Summary & Largest Unsecured Creditors WESTPOINT STEVENS: Court Okays Amended Services for Yantek WINN-DIXIE: Gets Interim Approval of Cash Management System WINN-DIXIE: Court Okays Interim Use of Existing Bank Accounts YUKOS OIL: Challenges Court's Findings of Fact YUKOS OIL: Fitch Says Legal Risk Remains a Russian Domestic Affair ********* AINSWORTH LUMBER: Wants to Buy Chatham Forest's OSB Mill Project ---------------------------------------------------------------- Ainsworth Lumber Co. Ltd. (TSX:ANS) has signed a letter of intent with Chatham Forest Products, Inc., for the purchase of a proposed oriented strand board mill project based in Lisbon, New York. Execution of a definitive agreement is conditional upon the successful completion by Ainsworth of its due diligence review, as well as other conditions including fiber supply assurance, completion of a site suitability review and assurances of financing, which are expected to occur during the second quarter of 2005. Ainsworth Lumber Co., Ltd., a British Columbia corporation headquartered in Vancouver, Canada, is a publicly traded integrated OSB producer that also manufactures specialty overlaid plywood and finger-jointed lumber. Ainsworth have a 13% market share in OSB after purchasing Potlatch. OSB sales represent approximately 97% of total revenues. * * * As reported in the Troubled Company Reporter on Sept. 16, 2004, Moody's Investors Service assigned a B2 rating to Ainsworth Lumber Co. Ltd.'s proposed US$450 million new note issues. The new notes are being issued to fund Ainsworth's US$457.5 million purchase of Potlatch Corporation's oriented strandboard assets, and will rank equally with Ainsworth's existing senior unsecured notes. Accordingly, the ratings on the existing notes, as well as Ainsworth's senior implied and issuer ratings, were downgraded to B2. The ratings outlook is stable. Standard & Poor's Ratings Services also affirmed its 'B+' long-term corporate credit and senior unsecured debt ratings on Vancouver, B.C.-based Ainsworth Lumber Co. Ltd. At the same time, the ratings were removed from CreditWatch, where they had been placed on Aug. 26, 2004, following the company's announcement to purchase all of Potlatch Corp.'s oriented strandboard manufacturing and related facilities for about US$457.5 million. Ainsworth's proposed new issues of US$300 million of fixed senior unsecured notes due 2012 and US$150 million of floating variable- rate senior notes due 2010 were also assigned 'B+' ratings. The outlook is stable. AINSWORTH LUMBER: Earns $53.1 Million of Net Income in 4th Quarter ------------------------------------------------------------------ VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2005) Ainsworth Lumber Co. Ltd. (TSX:ANS) reported its financial results for the fourth quarter and year ended December 31, 2004. The company generated net income of $53.1 million for the fourth quarter of 2004 compared to $40.9 million in same period of 2003. During the quarter, operating earnings declined to $27.5 million on sales of $253.0 million compared to $67.4 million on sales of $173.6 million in the same period of 2003. This decrease was principally driven by lower average OSB prices, higher raw material prices and higher selling and administration expenses. The 45.7% increase in sales is attributed to significantly higher OSB shipments arising from the company's acquisition of an additional four OSB manufacturing facilities during the second and third quarters of 2004. EBITDA, defined as operating earnings before amortization and write-down of capital assets, plus interest and other income, in the three-month period declined to $56.4 million from $89.2 million in the same period of 2003 due to the lower average OSB margins and the unfavourable impact of the significant appreciation in the Canadian dollar. The increase in net income is mainly attributable to a $33.3 million increase in the unrealized foreign exchange gain on U.S.-dollar denominated debt and a $15.7 million decrease in income tax expense being partly offset by the lower average OSB margins. Cash provided by operations (after changes in non-cash working capital) was $59.0 million compared to $77.8 million in the same period of 2003. For the twelve months ended December 31, 2004, net income was a record high $165.4 million or $11.32 per share compared to $123.7 million or $8.49 per share for the same period of 2003. This higher net income is largely explained by a $170.8 million improvement in operating earnings that was partly offset by a $106.2 million one-time expense related to refinancing long-term debt in early 2004. A 51.8% increase in OSB shipments and a 17.3% increase in OSB prices were the principal reasons for higher operating earnings compared to 2003. For the year, EBITDA was $365.6 million on sales of $909.9 million compared to $201.5 million on sales of $543.0 million in 2003. Cash provided by operations (after changes in non-cash working capital) totaled $352.7 million in 2004 compared to $133.6 million in the prior year. Brian Ainsworth, Chairman and Chief Executive Officer, said: "We are pleased with the excellent financial and operational results achieved in 2004; a performance that reflects the successful execution of our engineered wood strategy. Our strategic positioning enabled us to fully capture the opportunity provided by very favourable market conditions. The acquisition during 2004 of another four OSB plants further enhances our capacity to benefit in future periods from solid homebuilding fundamentals and strong demand for our products." Ainsworth Lumber Co., Ltd., a British Columbia corporation headquartered in Vancouver, Canada, is a publicly traded integrated OSB producer that also manufactures specialty overlaid plywood and finger-jointed lumber. Ainsworth have a 13% market share in OSB after purchasing Potlatch. OSB sales represent approximately 97% of total revenues. * * * As reported in the Troubled Company Reporter on Sept. 16, 2004, Moody's Investors Service assigned a B2 rating to Ainsworth Lumber Co. Ltd.'s proposed US$450 million new note issues. The new notes are being issued to fund Ainsworth's US$457.5 million purchase of Potlatch Corporation's oriented strandboard assets, and will rank equally with Ainsworth's existing senior unsecured notes. Accordingly, the ratings on the existing notes, as well as Ainsworth's senior implied and issuer ratings, were downgraded to B2. The ratings outlook is stable. Standard & Poor's Ratings Services also affirmed its 'B+' long-term corporate credit and senior unsecured debt ratings on Vancouver, B.C.-based Ainsworth Lumber Co. Ltd. At the same time, the ratings were removed from CreditWatch, where they had been placed on Aug. 26, 2004, following the company's announcement to purchase all of Potlatch Corp.'s oriented strandboard manufacturing and related facilities for about US$457.5 million. Ainsworth's proposed new issues of US$300 million of fixed senior unsecured notes due 2012 and US$150 million of floating variable- rate senior notes due 2010 were also assigned 'B+' ratings. The outlook is stable. AIRCRAFT FINANCE: Moody's Junks $71 Million Class C Notes --------------------------------------------------------- Moody's Investors Service is placing under review for possible downgrade its ratings on four classes of notes issued by Aircraft Finance Trust -- AFT. The complete rating action is: -- Issuer: Aircraft Finance Trust, Series 1999-1 * US $512 Million Class A-1 Floating Rate Notes due May 15, 2024, rated Ba1, Under Review for Possible Downgrade; * US $206 Million Class A-2 Floating Rate Notes due May 15, 2024, rated A2, Under Review for Possible Downgrade; * US $100 Million Class B Floating Rate Notes due May 15, 2024, rated B3, Under Review for Possible Downgrade; * US $71 Million Class C Fixed Rate Notes due May 15, 2024, rated Caa3, Under Review for Possible Downgrade; The rating actions are due to the dramatic increase in maintenance expenses incurred by the trust in recent months and the rising concern that this trend will continue. In January 2005, the Class D Notes defaulted on interest following the full depletion of the Class D liquidity account. In February, a spike in maintenance expenses caused a full drawdown of the Class C liquidity account and a partial drawdown of the Class B liquidity account. As a result, the Class C Notes defaulted. These jumps in maintenance expenses were inconsistent with the relatively low expenses seen in prior years on AFT There are currently four off-lease aircraft, representing around 9% of the portfolio, three of which have signed new leases. By the end of 2005, leases on nine aircraft will expire, representing 27% of the portfolio. The company has been remarketing these aircraft actively and in some cases has secured LOIs or signed new leases; however the expected lease rates are 30%-40% lower than their current rates. Given the heavy remarketing task in 2005 and the wide-body concentration of the portfolio, Moody's expects that there will be continuous volatility on the timing and the amount of the expenses that will be incurred in near future. Moody's review will focus on the several factors including: (i) current and future expense management, (ii) the likelihood of the Class B Notes defaulting on interest, and (iii) probability of extension risk with respect to principal payments on Class A Notes. AMERCO: Daniel Mullen Replaces James Grogan as Director ------------------------------------------------------- AMERCO (Nasdaq: UHAL) disclosed that Daniel R. Mullen has joined its board of directors. Mr. Mullen replaces James J. Grogan, who resigned from the Board earlier this month. "Dan brings a wealth of experience, insight and business expertise to AMERCO. His extensive experience in finance will benefit the board greatly as we move toward achieving operational excellence for AMERCO," stated E.J. "Joe" Shoen, chairman of AMERCO. Mullen serves as president of Continental Leasing Company, a Phoenix-based investment and venture capital firm. Previously, he held senior finance positions at Talley Industries, Inc., where he served as vice president, treasurer and principal financial officer. He is a member of Financial Executives International and serves on the board of directors at C. Myers Corporation. Mullen is also active in community service through his work with Arizona State University and Interfaith Cooperative Ministries. "I'm excited to have the opportunity to help benefit AMERCO and its commitment to its customers." Mullen said. "I believe my financial background will complement Board member expertise and will assist in building value for AMERCO shareholders. It will be a privilege to offer my experience to the Company's Board." About the Company AMERCO -- http://www.amerco.com/-- is the parent company of Republic Western Insurance Company, Oxford Life Insurance Company, Amerco Real Estate Company and U-Haul, the nation's leading do-it- yourself moving company with a network of over 14,900 locations in all 50 United States and 10 Canadian Provinces. Celebrating its 60th year of serving customers, the Company has the largest rental fleet in the world, with over 94,000 trucks, 75,000 trailers and 35,000 tow devices. U-Haul has also been a leader in the storage industry since 1974, with over 340,000 rooms and more than 28.8 million square feet of storage space and over 1,000 facilities throughout North America. In June 2004, Standard & Poor's assigned its B+ rating, with a stable outlook, to AMERCO's $105.1 million issue of 9% second lien notes due 2009. AMERCO: Appoints Charles Bayer to Audit Committee ------------------------------------------------- AMERCO (Nasdaq: UHAL) appointed Charles J. Bayer to the Audit Committee of the Board of Directors of AMERCO. Mr. Bayer is a member of the AMERCO Board of Directors and has served since 1990. Mr. Bayer replaces James J. Grogan on the Audit Committee. Mr. Grogan resigned from the Board and Board committees including the Audit Committee earlier this month. Mr. Bayer began his career as a commissioned officer in the U.S. Navy from 1962 - 1967 serving two tours of duty in Vietnam on the USS Asheville, ultimately becoming its Commanding Officer. Mr. Bayer has held numerous senior level positions including Director of Finance and Administration for the U-Haul Technical Center and President of Amerco Real Estate. Mr. Bayer earned an MBA from Arizona State University, Tempe, Arizona in 1972 and a Bachelor of Science in 1962, graduating cum laude from the University of Notre Dame, Notre Dame, Ind. About the Company AMERCO -- http://www.amerco.com/-- is the parent company of Republic Western Insurance Company, Oxford Life Insurance Company, Amerco Real Estate Company and U-Haul, the nation's leading do-it- yourself moving company with a network of over 14,900 locations in all 50 United States and 10 Canadian Provinces. Celebrating its 60th year of serving customers, the Company has the largest rental fleet in the world, with over 94,000 trucks, 75,000 trailers and 35,000 tow devices. U-Haul has also been a leader in the storage industry since 1974, with over 340,000 rooms and more than 28.8 million square feet of storage space and over 1,000 facilities throughout North America. In June 2004, Standard & Poor's assigned its B+ rating, with a stable outlook, to AMERCO's $105.1 million issue of 9% second lien notes due 2009. AMERICAN ENERGY: Lack of Revenue Casts Doubt on Firm's Viability ---------------------------------------------------------------- Prior to The American Energy Group, Ltd.'s bankruptcy proceedings initiated on June 28, 2002, the Company was an active oil and gas exploration and development company. The foreclosure of its Fort Bend County, Texas oil and gas leases by the secured creditor in early calendar 2003 resulted in the loss of the Company's only revenue producing asset. Now the Company intends to initiate new business activities by prudent management of its Pakistan overriding royalty interest and its Galveston, Texas interests and if successful in generating working capital from these investments or from sales of securities, American Energy Group intends to pursue investment opportunities in the oil and gas business. Drilling of the first well in Pakistan as to which its overriding royalty pertains is scheduled for the first quarter of calendar 2005. Since emerging from bankruptcy, The American Energy Group, Ltd. has been funded solely through the private sale of convertible debt securities totaling $575,000 pursuant to the Second Amended Plan of Reorganization, all of which has been converted to common stock. Subsequent to the end of the quarter ending Dec. 31, 2004, the Company obtained a loan from a private party for $200,000 for near term operating capital, the terms of which are accrual of interest at Wall Street Prime plus one percent, no prepayment penalty, and a maturity of one year, with the right to extend the maturity for an additional year by the payment of an extension fee of $20,000. During the quarter ended December 31, 2004, the Company issued 76,520 shares of restricted common stock to pay for $25,416.67 in accounting services through December 31, 2004. On a going forward basis, American Energy believes that it will need additional operating capital and anticipates seeking an infusion of cash through loans, sales of securities, a sale or partial sale of the Galveston County, Texas assets or successful resolution of the Smith Energy litigation. The Company anticipates that some critical services rendered by third parties during the 2005 calendar year will be paid with common stock, instead of cash assets. Successful drilling on the Pakistan Concession by Hydro Tur (Energy) Ltd. will also result in the generation of operating capital once sales into the existing pipeline infrastructure begin. However, there can be no assurance that the Company will be successful in obtaining sufficient operating capital to meet future needs from any of these potential sources. In light of its current lack of revenue-generating business operations and the need to further capitalize future overhead, operations and growth, American Energy Group, Ltd.'s viability as a going concern is uncertain. Headquartered in Houston, Texas, The American Energy Group, Ltd. was, until its bankruptcy in 2002, an independent oil and natural gas company engaged in the exploration, development acquisition and production of crude oil and natural gas properties in the Texas gulf coast region of the United States and in the Jacobabad area of the Republic of Pakistan. The Company's creditors filed an involuntary chapter 7 petition on June 28, 2002 (Bankr. S.D. Tex. Case No. 02-37125). The Company converted the chapter 7 case to a chapter 11 proceeding on Dec. 12, 2002. Leonard H. Simon, Esq., at Pendergraft & Simon L.L.P represents the Debtor in its chapter 11 case. The Company listed $18,507,723 in total assets and $4,140,230 in total debts in papers filed with the Bankruptcy Court in 2002. AMERIQUEST MORTGAGE: S&P Puts Low-B Ratings on Nine Cert. Classes ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on 23 classes from 13 series of pass-through certificates issued by Ameriquest Mortgage Securities, Inc. At the same time, ratings are affirmed on 360 classes from 41 series also issued by Ameriquest Mortgage Securities, Inc. The raised ratings reflect the increase in the actual and projected credit support percentages to the respective classes, although the total delinquency and cumulative realized loss percentages were relatively high. The higher credit support percentages resulted from the shifting interest structure of the transactions, benefiting from the significant paydown of their respective mortgage pools. In addition, delinquency triggers were in effect for seven of the 13 transactions, preventing their respective overcollateralization (O/C) from stepping down. Triggers were not in effect for the other six transactions. All 13 transactions were at or close to their respective O/C targets. As of the January 2005 remittance date, the outstanding pool balance for these upgraded transactions ranged from 8.65% (series 2001-3) to 36.94% (series 2003-2). Total delinquencies ranged from 11.23% (series 2002-5) to 38.63% (series 2001-2) and cumulative realized losses ranged from 0.22% (series 2002-5) to 5.00% (series 2000-1). The affirmed ratings reflect adequate actual and projected credit support percentages and the shifting interest structure of the transactions. As of the January 2005 remittance date, total delinquencies ranged from 0.33% (series 2003-IA1) to 19.86% (series 2002-AR1). Fourteen of the 28 transactions with affirmed ratings only had total delinquencies below 5%. Ten transactions, issued mostly in 2004, had no realized losses as of January 2005. For the other 18, cumulative realized losses ranged from less than 0.01% (series 2004-R7) to 0.71% (series 2002-AR1). In addition, these transactions were at their respective O/C targets. Credit support is provided by subordination, overcollateralization, and excess spread. The collateral consists of 30-year, adjustable-rate, fully amortizing, subprime mortgage loans secured by first liens on one- to four-family residential properties. Ratings Raised Ameriquest Mortgage Securities, Inc. Pass-Through Certificates Rating Series Class To From ------ ----- -- ---- 2000-1 M-2 AAA AA+ 2000-1 M-3 AA BBB 2000-2 M-2 AAA AA+ 2000-2 M-3 AA- BBB 2001-1 M-1 AAA AA+ 2001-2 M-1 AAA AA+ 2001-2 M-2 A+ A 2001-3 M-2 AA A 2002-1 M-1 AAA AA 2002-1 M-2 AA A 2002-2 M-1 AAA AA 2002-2 M-2 AA A 2002-3 M-1 AAA AA 2002-3 M-2 A+ A 2002-4 M-1 AAA AA 2002-4 M-2 AA- A 2002-5 M-1 AAA AA 2002-5 M-2 AA- A 2003-1 M-1 AA+ AA 2003-1 M-2 A+ A 2003-2 M-1 AA+ AA 2003-2 M-2 A+ A 2003-AR1 M-1 AA+ AA Ratings Affirmed Ameriquest Mortgage Securities, Inc. Pass-Through Certificates Series Class Rating ------ ----- ------ 2000-1 M-1 AAA 2001-1 A AAA 2001-1 M-2 A 2001-2 A-1 AAA 2001-2 M-3 BBB 2001-3 M-3 BBB 2002-1 AF-6, AV, S AAA 2002-1 M-3 BBB 2002-1 M-4 BBB- 2002-2 AF-6, AV, S AAA 2002-2 M-3 BBB 2002-2 M-4 BBB- 2002-3 AF-6, AV-1, S AAA 2002-3 M-3 BBB 2002-3 M-4 BBB- 2002-4 AF-1, AV-1, AV-2, S-1, S-2 AAA 2002-4 M-3 BBB 2002-4 M-4 BBB- 2002-5 AF-3, AF-4, AV-1, AV-3, S AAA 2002-5 M-3 BBB 2002-AR1 M-1, M-2, M-3 AAA 2002-AR1 M-4 AA+ 2002-C M-1 BBB 2002-C M-2 BBB- 2002-D M-1 A 2002-D M-2 BBB+ 2003-1 A-I, A-II AAA 2003-1 MF-3, MV-3 BBB 2003-1 M-4 BBB- 2003-2 A AAA 2003-2 M-3 BBB 2003-2 M-4 BBB- 2003-3 AF, AV-1, AV-2, S AAA 2003-3 M-1 AA 2003-3 M-2 A 2003-3 M-3 BBB+ 2003-3 M-4 BBB 2003-5 A-3, A-4, A-5, A-6 AAA 2003-5 M-1 AA+ 2003-5 M-2 AA 2003-5 M-3 A- 2003-5 M-4 BBB+ 2003-6 AV-1, AV-2, AV-3, AF-2, AF-3, AF-4, S AAA 2003-6 M-1 AA 2003-6 M-2 A 2003-6 M-3 A- 2003-6 M-4 BBB+ 2003-6 M-5 BBB 2003-6 M-6 BBB- 2003-7 A AAA 2003-7 M-1 AA 2003-7 M-2 A 2003-7 M-3 BBB+ 2003-7 M-4 BBB 2003-7 M-5 BBB- 2003-8 AV-1, AV-2, AV-4, AF-1, AF-2, AF-3, AF-4 AAA 2003-8 AF-5, S AAA 2003-8 M-1 AA 2003-8 M-2 A 2003-8 M-3 A- 2003-8 M-4 BBB+ 2003-8 M-5 BBB 2003-8 MV-6, MF-6 BBB- 2003-9 AV-1, AV-2, AF-1, AF-2, AF-3, S AAA 2003-9 M-1 AA 2003-9 M-2 A 2003-9 M-3 A- 2003-9 M-4 BBB+ 2003-9 M-5 BBB 2003-9 M-6 BBB- 2003-10 AV-1, AV-2, AF-2, AF-3, AF-4, AF-5, AF-6 AAA 2003-10 M-1 AA 2003-10 M-2 A 2003-10 M-3 A- 2003-10 M-4 BBB+ 2003-10 M-5 BBB 2003-10 MV-6, MF-6 BBB- 2003-11 AV-1, AV-2, AV-3, AV-4, AF-4, AF-2, AF-3 AAA 2003-11 AF-4, AF-5, AF-6 AAA 2003-11 M-1 AA 2003-11 M-2 A 2003-11 M-3, M-3A, M-3B A- 2003-11 M-4A, M-4B BBB+ 2003-11 M-5 BBB 2003-11 M-6 BBB- 2003-12 AV-1, AV-2, AF, S AAA 2003-12 M-1 AA 2003-12 M-2 A 2003-12 M-3 A- 2003-12 M-4 BBB+ 2003-12 M-5 BBB 2003-12 M-6 BBB- 2003-13 AV-1, AV-2, AF-2, AF-3, AF-4, AF-5, AF-6 AAA 2003-13 M-1 AA 2003-13 M-2 A 2003-13 M-3 A- 2003-13 M-4 BBB+ 2003-13 M-5 BBB 2003-13 M-6 BBB- 2003-AR1 A-1, A-2 AAA 2003-AR1 M-2 A 2003-AR1 M-3 BBB 2003-AR1 M-4 BBB- 2003-AR2 A-1, A-2, A-3, A-4 AAA 2003-AR2 M-1 AA+ 2003-AR2 M-2 A 2003-AR2 M-3 BBB 2003-AR3 A-1, A-2 AAA 2003-AR3 M-1 AA 2003-AR3 M-2 A 2003-AR3 M-3 A- 2003-AR3 M-4 BBB+ 2003-AR3 M-5 BBB 2003-AR3 M-6 BBB- 2003-IA1 A-1, A-2, A-3, A-4, A-5, A-6, S AAA 2003-IA1 MV-1, MF-1 AA 2003-IA1 M-2 A 2003-IA1 M-3 BBB 2004-FR1 A-1, A-2, A-3, A-4, A-5, A-6, A-7 AAA 2004-FR1 M-1 AA+ 2004-FR1 M-2 AA 2004-FR1 M-3 AA- 2004-FR1 M-4 A+ 2004-FR1 M-5 A 2004-FR1 M-6 A- 2004-FR1 M-7 BBB+ 2004-FR1 M-8 BBB 2004-FR1 M-9 BBB- 2004-IA1 A-1, A-2, A-3 AAA 2004-IA1 M-1 AA+ 2004-IA1 M-2 AA 2004-IA1 M-3 AA- 2004-IA1 M-4 A 2004-IA1 M-5 A- 2004-IA1 M-6 BBB+ 2004-IA1 M-7 BBB 2004-IA1 M-8 BBB- 2004-IA1 M-9 BB+ 2004-R1 A-1A, A-1B, A-2 AAA 2004-R1 M-1 AA+ 2004-R1 M-2 AA 2004-R1 M-3 AA- 2004-R1 M-4 A+ 2004-R1 M-5 A 2004-R1 M-6 A- 2004-R1 M-7 BBB+ 2004-R1 M-8 BBB 2004-R1 M-9 BBB- 2004-R1 M-10 BB+ 2004-R2 A-1A, A-1B, A-2, A-3, A-4 AAA 2004-R2 M-1 AA+ 2004-R2 M-2 AA 2004-R2 M-3 AA- 2004-R2 M-4 A+ 2004-R2 M-5 A 2004-R2 M-6 A- 2004-R2 M-7 BBB+ 2004-R2 M-8 BBB 2004-R2 M-9 BBB- 2004-R3 A-1A, A-1B, A-2, A-3, A-4 AAA 2004-R3 M-1 AA 2004-R3 M-2 A 2004-R3 M-3 A- 2004-R3 M-4 BBB+ 2004-R3 M-5 BBB 2004-R3 M-6 BBB- 2004-R3 M-7 BB+ 2004-R4 A-1A, A-1B, A-2, A-3, A-4 AAA 2004-R4 M-1 AA 2004-R4 M-2 A 2004-R4 M-3 A- 2004-R4 M-4 BBB+ 2004-R4 M-5 BBB 2004-R4 M-6 BBB- 2004-R4 M-7 BB+ 2004-R5 A-1A, A-1B, A-2, A-3, A-4 AAA 2004-R5 M-1 AA 2004-R5 M-2 A 2004-R5 M-3 A- 2004-R5 M-4 BBB+ 2004-R5 M-5 BBB 2004-R5 M-6 BBB- 2004-R5 M-7 BB+ 2004-R6 A-1, A-2, A-3, A-4 AAA 2004-R6 M-1 A- 2004-R6 M-2 BBB+ 2004-R6 M-3 BBB 2004-R6 M-4 BBB- 2004-R6 M-5 BB+ 2004-R7 A-1, A-2, A-3, A-4, A-5, A-6, M-1 AAA 2004-R7 M-2, M-3 AA+ 2004-R7 M-4 AA 2004-R7 M-5 AA- 2004-R7 M-6 A+ 2004-R7 M-7 A 2004-R7 M-8 A- 2004-R7 M-9 BBB+ 2004-R7 M-10 BBB 2004-R7 M-11 BBB- 2004-R8 A-1, A-2, A-3, A-4, A-5 AAA 2004-R8 M-1 AA+ 2004-R8 M-2 AA 2004-R8 M-3 AA- 2004-R8 M-4 A+ 2004-R8 M-5 A 2004-R8 M-6 A- 2004-R8 M-7 BBB+ 2004-R8 M-8 BBB 2004-R8 M-9 BBB- 2004-R8 M-10 BB+ 2004-R9 A-1, A-2, A-3, A-4 AAA 2004-R9 M-1 AA+ 2004-R9 M-2 AA 2004-R9 M-3 AA- 2004-R9 M-4 A 2004-R9 M-5 A- 2004-R9 M-6 BBB+ 2004-R9 M-7 BBB 2004-R9 M-8 BBB- 2004-R9 M-9 BB+ 2004-R10 A-1, A-2, A-3, A-4, A-5 AAA 2004-R10 M-1 AA+ 2004-R10 M-2 AA 2004-R10 M-3 AA- 2004-R10 M-4 A+ 2004-R10 M-5 A 2004-R10 M-6 A- 2004-R10 M-7 BBB+ 2004-R10 M-8 BBB 2004-R10 M-9 BBB- 2004-R10 M-10 BB+ AMERUS GROUP: Fitch Says Litigation May Have Neg. Credit Impact --------------------------------------------------------------- Fitch Ratings affirmed the 'BBB' long-term issuer rating of AmerUs Group Co. -- AmerUs, as well as the ratings on its outstanding debt. In addition, Fitch assigned an 'A' insurer financial strength rating to AmerUs Group Co. insurance subsidiaries: -- AmerUs Life Insurance Co.; -- Indianapolis Life Insurance Co.; -- American Investors Life Insurance Co.; -- Bankers Life Insurance Co. of New York. The rating action affects approximately $540 million of debt outstanding. The Rating Outlook is Stable. The ratings are supported by AmerUs' good profitability, diverse product offerings with niche positions in equity-indexed products, and a variety of distribution sources. Fitch also views statutory capitalization at the insurance operating subsidiaries as strong, measured by a consolidated NAIC risk-based capital ratio of 356% of the company action level. The investment portfolio is highly liquid; however, credit quality is an issue, as the amount of below investment-grade bonds is greater than statutory surplus. A key rating concern involves an estimated $110 million civil lawsuit against American Investors Life and Family First Insurance Services, a wholly owned marketing organization of AmerUs Group, filed by the California Attorney General and the California Insurance Commissioner. AmerUs Group issued a press release stating it has appropriate defenses against the suit and intends to vigorously defend its position in court. However, Fitch remains concerned about the impact of the lawsuit on AmerUs' reputation, ability to compete in the California market, and the potential for similar lawsuits to emerge from other states. Factors that would negatively affect ratings in the AmerUs Group include: * a large charge from the California litigation; * significant additional related litigation; and * damage to AmerUs' competitive position as measured by declining sales or significant surrender activity. Fitch expects AmerUs to meet management's guidance for profitability as measured by GAAP ROE of 12%, adjusted debt-to- total capital below 25%, and NAIC risk-based capital in excess of 300% of the company action level. Equity credit adjusted debt-to-capital at year-end 2004 was less than 15%, which is comfortably within the stated 25% target set by AmerUs management. Fitch adjusts debt for equity credit based on years to maturity, dividend/interest deferral features, and size relative to total capital. Hybrid securities such as PRIDES, OCEANs, and QUIPS represented 18% of total capital, which remains below the 20% ceiling Fitch considers acceptable for the rating category. AmerUs Group Co.'s fixed charge coverage was 7.5x in 2004, eliminating realized/unrealized investment gains from the earnings figure. This level of fixed-charge coverage is considered solid and remains an important component in AmerUs Group Co.'s debt ratings. AmerUs Group Co., an insurance holding company, is headquartered in Des Moines, Iowa and reported total assets of $23 billion and stockholders' equity of $1.6 billion at Dec. 31, 2004. These ratings have a Stable Rating Outlook by Fitch: AmerUs Group Co. -- Long-term issuer affirmed at 'BBB'; -- Senior notes affirmed at 'BBB'; -- OCEANs affirmed at 'BBB-'; -- PRIDES assigned 'BBB'. AmerUs Capital I -- QUIPS affirmed at 'BB+'. AmerUs Life Insurance Co. -- Surplus note affirmed at 'BBB+'; -- Insurer financial strength assigned 'A'. Indianapolis Life Insurance Co -- Surplus note affirmed at 'BBB+'; -- Insurer financial strength assigned 'A'. American Investors Life Insurance Co. -- Insurer financial strength assigned 'A'. Bankers Life Insurance Co. of New York -- Insurer financial strength assigned 'A'. ATA AIRLINES: Sharing Business Plan with Committee This Week ------------------------------------------------------------ As previously reported, Judge Lorch extended the period within which ATA Airlines and its debtor-affiliates have the exclusive right to file a Chapter 11 plan to May 24, 2005. Judge Lorch also extended the company's exclusive period to solicit acceptances of a timely filed plan to July 23, 2005. The Official Committee of Unsecured Creditors gave its support to the Debtors' request for maintain control of the chapter 11 plan process. In exchange for that support, the Debtors agree to: (a) provide to the Creditors Committee a new business plan, which will include projected revenues and expenses through December 31, 2005; and (b) meet with the Creditors Committee to discuss the new business plan and other matters on or before March 4, 2005. Headquartered in Indianapolis, Indiana, ATA Airlines, owned by ATA Holdings Corp. -- http://www.ata.com/-- is the nation's 10th largest passenger carrier (based on revenue passenger miles) and one of the nation's largest low-fare carriers. ATA has one of the youngest, most fuel-efficient fleets among the major carriers, featuring the new Boeing 737-800 and 757-300 aircraft. The airline operates significant scheduled service from Chicago-Midway, Hawaii, Indianapolis, New York and San Francisco to over 40 business and vacation destinations. Stock of parent company, ATA Holdings Corp., is traded on the Nasdaq Stock Exchange. The Company and its debtor-affiliates filed for chapter 11 protection on Oct. 26, 2004 (Bankr. S.D. Ind. Case No. 04- 19866, 04-19868 through 04-19874). Terry E. Hall, Esq., at Baker & Daniels, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $745,159,000 in total assets and $940,521,000 in total debts. (ATA Airlines Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., 215/945-7000) BANC OF AMERICA: Moody's Puts Low-B Ratings on Classes B-4 & B-5 ---------------------------------------------------------------- Moody's Investors Service has assigned an Aaa rating to five of the senior certificates issued by Banc of America Funding Trust, Series 2004-D. In addition, Moody's has assigned an Aa1 rating to a super-senior support certificate and ratings ranging from Aa2 to B2 to several of the subordinate certificates in the deal. The securitization is backed by Bank of America N.A. (61%), Loan City (32%) and Wells Fargo Bank N.A. (7%) originated hybrid prime mortgage loans. The ratings are based primarily on the credit quality of the loans, subordination and the shifting interest structure. The credit quality of the loan pool is in line with average hybrid loan pools backing recent prime securitizations. Moody's loss expectation for the pool is approximately 0.55% to 0.65%. Bank of America N.A. and Wells Fargo Bank N.A. will service the loans. Wells Fargo Bank N.A. and Washington Mutual Mortgage Securities Corp. will act as master servicers. The complete rating actions are: -- Banc of America Funding 2004-D Trust, Mortgage Pass-Through Certificates, Series 2004-D * Class 1-A-1, rated Aaa * Class 2-A-1, rated Aaa * Class 3-A-1, rated Aaa * Class 4-A-1, rated Aaa * Class 5-A-1, rated Aaa * Class 5-A-2, rated Aa1 * Class B-1, rated Aa2 * Class B-2, rated A2 * Class B-3, rated Baa2 * Class B-4, rated Ba2 * Class B-5, rated B2 BEAR STEARNS: Increased Default Chances Cue S&P to Review Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on three classes of Bear Stearns Commercial Mortgage Securities, Inc.'s corporate leased-backed certificates from series 1999-CLF1 on CreditWatch with negative implications. The CreditWatch placements follow Winn-Dixie Stores, Inc.'s rejection of a lease on a 47,192-square-foot retail property in Rainsville, Alabama. The property secures a $3.8 million mortgage loan, which serves as collateral for the rated certificates. Due to the lease rejection, the loan's probability of default has increased significantly. Should it default and experience losses, the classes with ratings placed on CreditWatch will suffer credit enhancement deterioration and may be downgraded. In the case of classes D and E, the magnitude of any downgrades will depend upon the size of the loss. In the case of class F, any losses will cause the rating to be lowered to 'D', as it is the most subordinate class in the structure. Standard & Poor's will monitor the situation closely. There is one other loan in the pool secured by a Winn-Dixie store. Should the lease be rejected on this store, Standard & Poor's will revise its CreditWatch placements and/or lower ratings. Ratings Placed on CreditWatch Negative Bear Stearns Commercial Mortgage Securities, Inc. Corporate Leased-Backed Certs Series 1999-CLF1 Rating Class To From Credit Enhancement ----- -- ---- ------------------ D BBB/Watch Neg BBB 2.00% E BB/Watch Neg BB 0.86% F B-/Watch Neg B- 0.00% BJT ENTERPRISES: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: BJT Enterprises dba Closets by Design 601 North 5th Avenue Kankakee, Illinois 60901 Bankruptcy Case No.: 05-90616 Type of Business: The Debtor designs, builds, and installs custom closets, garage cabinets, home offices, laundry rooms, pantries, wardrobe mirror doors and other products. See http://www.closetsbydesign.com/ Chapter 11 Petition Date: February 25, 2005 Court: Central District of Illinois (Danville) Judge: Gerald D. Fines Debtor's Counsel: David K. Welch, Esq. Crane, Heyman, Simon, Welch & Clar 135 South LaSalle St., #1540 Chicago, IL 60603 Tel: 312-641-6777 Estimated Assets: $500,000 to $1 Million Estimated Debts: $1 Million to $10 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ CBD Franchising, LLC $128,934 13151 S. Western Ave. Gardena, CA 90249 AETNA Plywood, Inc. $65,702 4208 Paysphere Circle Chicago, IL 60674 American Express $53,632 P.O. Box 650448 Dallas, TX 75265 Clipper Magazine $17,493 All Tile $14,230 Bilmar Co. $12,767 Avi & Ally Aelon $12,500 Baer Supply Company $12,288 Northern Contours $11,259 Shane Dugger $10,000 Steve Mrazek $9,000 Jeff & Karen Wineman $6,463 SelectDeck $6,000 Sherwin Williams, Inc. $5,493 Rugby IPD $5,357 John Conway $4,923 Sidelines, Inc. $4,215 Dell Computer $4,110 Walzcraft Industries $4,057 Cara & William Zermuehlen $4,000 BROADBAND OFFICE: Court Approves Priority Wage Claims Compromise ---------------------------------------------------------------- The Honorable Gregory M. Sleet of the U.S. Bankruptcy Court for the District of Delaware gave Broadband Office, Inc., authority to compromise and pay certain priority wage claims asserted by approximately 450 employees. Judge Sleet allows the Debtor to settle the wage claims for 50% of the lesser of: i) the priority amount scheduled or claimed; and ii) the statutory priority cap of $4,650. The Debtor expects to pay approximately $800,000 in settlement of the wage claims. The compromise will not prejudice any creditor, the Debtor says, since it holds sufficient funds to pay all administrative claims in full. Headquartered in San Mateo, California, Broadband Office, Inc., filed for chapter 11 protection on May 9, 2001 (Bankr. D. Del. Case No. 01-1720). BBO is now a non-operating company in the process of liquidating its assets. Adam Hiller, Esq., and David M. Fournier, Esq., at Pepper Hamilton LLP represent the company. When the Company filed for protection from its creditors, it listed $100 million in assets and debts. C-BASS: Fitch Affirms Low-B Ratings on Five Series 1999-3 Classes ----------------------------------------------------------------- Fitch Ratings has affirmed C-Bass issues, series 1999-3: -- Class A at 'AAA'; -- Class M-1 at 'AA'; -- Class M-2 at 'A'; -- Class M-3 at 'A-'; -- Class M-4 at 'BBB'; -- Class M-5 at 'BBB-'; -- Class B-1 at 'BB+'; -- Class B-2 at 'BB'; -- Class B-3 at 'BB-'; -- Class B-4 at 'B'; -- Class B-5 at 'B-'. The affirmation on the above classes reflects credit enhancement consistent with future loss expectations and affects $34,333,113 of certificates. This transaction is a resecuritization of residential mortgage- backed securities that consist of prime quality mortgage loans. The credit enhancement levels for the above classes have increased from the original levels, and the performance of the underlying deals have been in line with our expectations. The mortgage pool has 27% of the original collateral remaining in the pool balance. Further information regarding current delinquency, loss, and credit enhancement statistics is available on the Fitch Ratings web site at http://www.fitchratings.com/ CABLE PLASTICS: Case Summary & 21 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Cable Plastics Reclaiming, Inc. 755 South 500 West, Suite A La Porte, Indiana 46350 Bankruptcy Case No.: 05-30779 Type of Business: The Debtor provides recycling services. Chapter 11 Petition Date: February 27, 2005 Court: Northern District of Indiana (South Bend Division) Judge: Harry C. Dees, Jr. Debtor's Counsel: Jeffery A. Johnson, Esq. May Oberfell Lorber 300 North Michigan South Bend, IN 46601 Tel: 574-232-2031 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million Debtor's 21 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Solid Waste District of LaPorte County $525,000 2354 North U.S. Highway 35 LaPorte, IN 46350 The Broadview Group LLC $171,999 801 Canterbury Road Westlake, OH 44145 Motor City Electric Company $131,360 2-75 Business Center 300 Philips Avenue, Ste. 308 Toledo, OH 43162 Gneuss Inc. $118,012 P M Fabricating, Inc. $82,541 PAPSCO Filtration $77,657 Simborg Industrial Development $73,005 Exfil $64,892 D. A. Dodd $64,179 GALA Industries, Inc.&nbs