T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 2, 2005, Vol. 9, No. 181 Headlines A&A POTATO: Case Summary & 12 Largest Unsecured Creditors ACE AVIATION: British Columbia Investment Buys 5.04% Equity Stake ACTUANT CORP: S&P Rates $900 Million Universal Shelf at B+ ADAPTEC INC: Posts $36 Million Net Loss in First Quarter 2006 ADESA INC: S&P Rates $500 Million Credit Facility at BB ALLIED HOLDINGS: Files for Chapter 11 Protection in N.D. Georgia ALLIED HOLDINGS: Case Summary & 40 Largest Unsecured Creditors ALLIED HOLDINGS: Ch. 11 Filing Cues S&P's Ratings to Tumble to D AMERICAN MEDICAL: List of 20 Largest Unsecured Creditors AMERICAN NATURAL: Issues 4.2 Million Common Shares AMERUS GROUP: Fitch Holds BB+ Rating on Trust-Preferred Issue ARCAP: S&P Places Low-B Ratings on Four Certificate Classes AURA SYSTEMS: Court Approves $1.2 Million Interim Financing BEAR STEARNS: Fitch Assigns BB Rating on $13.29MM of Certificates BOSTON COMMS: Placing $41 Million in Escrow for Patent Lawsuit BOWNE & CO: Adopts Plan to Repurchase $35 Million of Common Stock BOWNE & CO: Earns $4 Million of Net Income in Second Quarter CANADIAN HOTEL: Debenture Redemption Cues S&P to Withdraw Ratings CEDAR PARK: Case Summary & 4 Largest Unsecured Creditors CITICORP MORTGAGE: Fitch Places B Rating on $541K Class B Certs. CITIGROUP MORTGAGE: Fitch Puts Low-B Rating on Two Cert. Classes COMDIAL CORP: Court Okays Platzer Swergold as Panel's Lead Counsel COMDIAL CORP: Jaspan Schlesinger Approved as Panel's Local Counsel COMM 2005-C6: S&P Puts Low-B Ratings on Six Certificate Classes CONGOLEUM CORP: Wants Plan Filing Period Extended to Nov. 1 CONSECO INC: Moody's Reviews Junk Preferred Securities Rating CREDIT SUISSE: Fitch Rates $900,000 Private Certificates at BB CWALT INC: Fitch Puts Low-B Rating on Two Mortgage Cert. Classes CWMBS INC: Fitch Places Low-B Rating on $1.8MM Class B Certs. DOLLARAMA GROUP: S&P Rates $200 Million Senior Notes at B- EAGLEPICHER INC: Secures Second Interim DIP Financing from Harris EDWARD COUVRETTE: Voluntary Chapter 11 Case Summary EMMIS COMMS: Inks Settlement Pact on Spanish Broadcasting Lawsuit EMPRESAS ICA: $44 Million Debt Payment Prompts S&P to Lift Ratings ENRON: Five Former EBS Officers Escape Conviction in Fraud Case FEDERAL-MOGUL: Gets Court Nod to Expand Scope of Hanly's Services FIRST HORIZON: Fitch Assigns Low-B Rating on Two Cert. Classes FIRSTFED CORP: High Losses Cue Fitch to Junk Two Cert. Classes GRUPO IUSACELL: June 30 Balance Sheet Upside-Down by Ps. 1.4 Bil. GRUPO IUSACELL: Creditor Talks on Restructuring Pact Continue INDYMAC MANUFACTURED: Fitch Holds Junk Rating on 3 Cert. Classes INSIGHT COMMS: Inks $2.1 Billion Merger with Carlyle-Led Group IPCS INC: Inks Forbearance Pact with Sprint on Del. & Ill. Suits J.P. MORGAN: Fitch Assigns Low-B Rating on Six Certificate Classes KAISER ALUMINUM: JPMorgan & CIT Offer $250 Million Exit Financing KELLWOOD CO: Weak Performance Prompts S&P to Pare Ratings KEVIN MAYER: Case Summary & 20 Largest Unsecured Creditors KMART CORP: Overview of Footstar-Kmart Settlement Agreement KULICKE & SOFFA: June 30 Balance Sheet Upside-Down by $44.3 Mil. LEAR CORP: Posts $44.4 Million Net Loss in Second Quarter LEAR CORP: Moody's Downgrades Senior Unsecured Debt Rating to Ba2 LONGVIEW FIBRE: S&P Rates $1 Billion Universal Shelf at B+ MAGELLAN HEALTH: Earns $22.7 Million of Net Income in 2nd Quarter MERIDIAN AUTOMOTIVE: Court Approves Lazard as Investment Banker MERIDIAN AUTOMOTIVE: Gets Court Nod to Resell Equipment MERRIL DEAN: List of Seven Largest Unsecured Creditors MIRANT CORP: Gets Court Nod to Cap Cascade's Claim at $592,709 MIRANT: Wants to Recover Payments from Salomon, Citibank & CSFB MIRANT CORP: Committee Wants $5M of Annuity Payments Recovered NATURADE INC: Inks Acquisition Pacts & Completes Financial Reorg. NOMURA CBO: Credit Enhancement Prompts S&P to Upgrade Ratings OAKWOOD PACKAGING: Case Summary & 20 Largest Unsecured Creditors OLD DIXIE: Case Summary & 20 Largest Unsecured Creditors ON TOP: Case Summary & 20 Largest Unsecured Creditors ONE TO ONE: Committee Hires Deloitte Financial as Advisor ONE TO ONE: Hires Triax Capital as Investment Banker ONE TO ONE: Exclusive Plan Filing Period Extended Until Sept. 30 OWENS CORNING: Gets Court Nod to Employ Sidley Austin as Counsel PACIFIC FINANCIAL: Case Summary & 3 Largest Unsecured Creditors PARK PLACE: Fitch Places Low-B Rating on Two Certificate Classes PETROHAWK ENERGY: Moody's Junks $130 Million Sr. Unsecured Notes QUIGLEY COMPANY: Wants Sept. 15 Bar Date to Include Silica Claims REMY INT'L: June 30 Balance Sheet Upside-Down by $233.7 Million REMY INTERNATIONAL: S&P Junks $125 Million Senior Secured Notes REPUBLIC ENGINEERED: Selling Assets to Mexico's Industrias CH SAMSON ORUSA: Case Summary & 9 Largest Unsecured Creditors SIGNAL SECURITIZATION: Fitch Affirms BB Rating on Class B Certs. STRUCTURED ASSET: Fitch Puts BB+ Rating on $4.4 Million Certs. TERWIN MORTGAGE: Fitch Puts Low-B Rating on Two Cert. Classes TOUCH AMERICA: Plan Trustee Has Until Oct. 1 to Decide on Leases UAL CORP: Wants Court Okay on Citigroup Cooperation Agreement UAL CORP: Terms of Machinists' Amended Tentative Labor Pact US AIRWAYS: Can Use ATSB Lenders' Cash Collateral Until Aug. 19 VARTEC TELECOM: Secures Extension of Exclusive Periods WASHINGTON NATIONAL: Moody's Reviews Ba1 Insurance Rating WEST CLIFF: List of Two Largest Unsecured Creditors WESTPOINT STEVENS: PBGC Says Disclosure Statement is Inadequate WINN-DIXIE: Gets Court Nod to Sell Assets Thru Liquidating Agents WRC MEDIA: Restructuring Cues Moody's to Withdraw All Debt Ratings * Large Companies with Insolvent Balance Sheets ********* A&A POTATO: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------- Debtor: A&A Potato of Del Norte Colorado, LLC P.O. Box 23647 New Orleans, Louisiana 70183 Bankruptcy Case No.: 05-16392 Type of Business: The Debtor is an affiliate of Dixie Produce & Packaging, LLC, which filed for chapter 11 protection on Apr. 27, 2005 (Bankr. E.D. La. Case No. 05-13410) with Honorable Jerry A. Brown presiding. Dixie Produce & Packaging, LLC's chapter 11 filing was reported in the Troubled Company Reporter on April 28, 2005. Chapter 11 Petition Date: July 29, 2005 Court: Eastern District of Louisiana (New Orleans) Judge: Jerry A. Brown Debtor's Counsel: Tristan E. Manthey, Esq. Heller Draper Hayden Patrick & Horn 650 Poydras Street, Suite 2500 New Orleans, Louisiana 70130 Tel: (504) 568-1888 Fax: (504) 522-0949 Estimated Assets: Less than $50,000 Estimated Debts: $1 Million to $10 Million Debtor's 12 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Hibernia National Bank $7,724,632 P.O. Box 61540 New Orleans, LA 70161-1540 Tonso Farms $234,000 1016 East Highway 112 Center, CO 81125 RM & SM Farms $73,547 3001 South Grant Englewood, CO 80110 Lonell Crowthen $63,655 Aspen Produce $31,582 Manual Virgil $26,573 Alan Vantrees $11,086 ECEL Energy $2,918 Colorado Property Tax $1,357 Laporte Sehrt Romig & Hand, CPA $1,068 IRS Department of Treasury $634 IRS Automated Collection System $619 ACE AVIATION: British Columbia Investment Buys 5.04% Equity Stake ----------------------------------------------------------------- British Columbia Investment Management Corporation is the beneficial owner of 963,600 Class B voting shares of ACE Aviation Holdings, Inc., the fund manager disclosed in a regulatory filing with the U.S. Securities and Exchange Commission. This represents 5.04% of the approximately 19,084,000 Class B shares outstanding at June 30, 2005. bcIMC has the sole power to dispose or direct the disposition of 929,000 shares. bcIMC provides investment advisory and management services. As of March 31, 2004, bcIMC is $62.6 billion in assets under administration. Chief Executive Officer Doug Pearce relates that bcIMC acquired the ACE securities solely for investment purposes on behalf of client accounts over which it has investment discretion. The ACE securities are held in accounts for the economic benefit of the beneficiaries of those accounts. bcIMC is based in Victoria, British Columbia. ACE Aviation is the parent holding company of Air Canada and ACE's other subsidiaries. Air Canada is Canada's largest domestic and international full-service airline and the largest provider of scheduled passenger services in the domestic market, the transborder market and each of the Canada-Europe, Canada-Pacific, Canada-Caribbean/Central America and Canada-South America markets. Air Canada is a founding member of the Star Alliance network, the world's largest airline alliance group. In addition, the Corporation owns Jazz Air LP, Aeroplan LP and Destina.ca, which is an on-line travel site. The Corporation also provides Technical Services through ACTS LP, Cargo Services through AC Cargo LP and Air Canada, Groundhandling Services through ACGHS LP and Air Canada and tour operator services and leisure vacation packages through Touram LP. * * * As reported in the Troubled Company Reporter on Oct. 5, 2004, Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Montreal, Quebec-based ACE Aviation Holdings Inc. and its wholly owned subsidiary, Air Canada. S&P says the outlook is stable. ACTUANT CORP: S&P Rates $900 Million Universal Shelf at B+ ---------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B+' subordinated debt rating to Actuant Corp.'s $900 million universal 415 shelf registration. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating on the Milwaukee, Wisconsin-based company. The outlook is stable. "The ratings on Actuant Corp. reflect the company's satisfactory business position and aggressive financial profile, which is characterized by high leverage," said Standard & Poor's credit analyst Natalia Bruslanova. Actuant is a diversified manufacturer of branded standard and customized products for relatively small automotive, industrial, and retail end markets. The company had total balance sheet debt of about $480 million as of May 31, 2005, (this takes into account funding for the $315 million acquisition of Key Components Inc., or KCI, in December 2004). The challenges in Actuant's business segments include competitive market conditions and cyclical demand in certain end markets, including heavy-duty truck, RV, automotive, and construction. With this product mix, Actuant is largely dependent on business from original equipment manufacturers, and lacks significant aftermarket service revenues that could provide stability in a down cycle. These risks are mitigated by certain business strengths, including Actuant's leading shares in differing markets -- nearly 80% of the company's sales are generated by products holding No. 1 positions in niche markets. Actuant's relatively good geographic, customer, product, and end-market diversity should mitigate future earnings and cash flow volatility. Still, many of the various markets the company serves are relatively small, so Actuant's longer term expansion will be driven by its acquisition of well-positioned companies serving new niches. ADAPTEC INC: Posts $36 Million Net Loss in First Quarter 2006 ------------------------------------------------------------- Adaptec, Inc. (NASDAQ: ADPT), a global leader in storage solutions, reported its financial results for the first quarter of its fiscal year 2006 ended June 30, 2005. Net revenue on a generally accepted accounting principles basis for the first quarter of fiscal 2006 was $98.4 million, compared with $115.5 million for the first quarter of fiscal 2005 and $111.2 million for the fourth quarter of fiscal 2005. Non-GAAP net revenue for the first quarter of fiscal 2006 was $105.9 million, compared with $115.5 million for the first quarter of fiscal 2005 and $111.2 million for the fourth quarter of fiscal 2005. The GAAP results for the first quarter of fiscal 2006 included asset impairment charges totaling $15.5 million related to the IBM I/P Series RAID business, of which $7.5 million reduced GAAP net revenue and $8.0 million was included in GAAP operating expenses. The GAAP net loss for the first quarter of fiscal 2006 was $36 million, compared with net income of $10,000 for the first quarter of fiscal 2005 and net loss of $159.5 million for the fourth quarter of fiscal 2005. The non-GAAP net loss for the first quarter of fiscal 2006 was $14.3 million, compared with net income of $6.4 million for the first quarter of fiscal 2005 and net loss of $4.5 million for the fourth quarter of fiscal 2005. "Adaptec President Sundi Sundaresh and I are working to restore Adaptec to a position where it is delivering shareholder value," said Adaptec Interim Chief Executive Officer, D. Scott Mercer. "Currently, we are engaged in a thorough analysis of all of Adaptec's businesses and operations. While the company has some significant challenges that we need to overcome, it also has many strengths and a great foundation that we will leverage as we move forward in the coming months." Adaptec, Inc. (NASDAQ: ADPT) -- http://www.adaptec.com/-- provides trusted storage solutions that reliably move, manage, and protect critical data and digital content. Adaptec's software and hardware-based solutions are delivered through leading Original Equipment Manufacturers (OEMs) and channel partners to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses, and consumers worldwide. Adaptec is an S&P Small Cap 600 Index member. * * * As reported in the Troubled Company Reporter on May 9, 2005, Standard & Poor's Ratings Services revised its outlook on Milpitas, California-based Adaptec Inc. to negative from stable, and affirmed the corporate credit rating at 'B+'. The outlook revision follows the company's earnings announcement for the quarter ended March 31, 2005, and the expectation that current weakened profitability trends will continue. Adaptec had $285 million of rated debt outstanding as of March 31, 2004. "The ratings on Adaptec Inc. reflect the challenges the company faces in fortifying and transitioning its business profile in the face of commoditization and deterioration in the core small computer systems interface (SCSI) business, which has resulted in recent quarters weakened profitability and debt protection metrics," said Standard & Poor's credit analyst Joshua Davis. These factors partially are offset by financial flexibility provided by a net cash position on the balance sheet. Adaptec has a dominant share of the mature market for SCSI chips and adapter cards, used to connect high-performance peripherals to computer servers. ADESA INC: S&P Rates $500 Million Credit Facility at BB ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on wholesale vehicle auctioneer ADESA Inc. to positive from stable. The revision reflects the potential for an upgrade during the next two years if the company is able to sustain its recent solid operating performance. The 'BB' corporate credit rating was affirmed, and a 'BB' senior secured rating and a '2' recovery rating were assigned to ADESA's $500 million credit facility, indicating a strong likelihood of substantial recovery of principal (80%-100%) in the event of payment default. Carmel, Indiana-based ADESA has total lease- adjusted debt of about $590 million. "The ratings on ADESA reflect its weak business profile," said Standard & Poor's credit analyst Martin King. "The company's operating environment is competitive, and ADESA has risky financing operations and a limited track record as an independent. It also serves large customers with considerable leverage. These factors are somewhat offset by ADESA's solid No. 2 U.S. market position, its growing market share with key accounts, and its good geographic scope in the U.S." The ratings also take into account ADESA's moderately aggressive financial policy and its heavy debt load, which hamper its solid cash flow generation and good liquidity. ADESA conducts used-vehicle wholesale and salvage auctions and performs various ancillary pre-auction and post-auction services at 83 locations in North America. The company's financing subsidiary, Automotive Finance Corp., provides inventory financing to independent used-vehicle dealers who purchase vehicles from auctions and other sources. Despite the flat or declining volume of vehicles entering the auction market in recent quarters, ADESA's performance has improved modestly because of management's cost-reduction efforts, because of higher revenues per vehicle, and because of the company's more efficient asset management. For the 2005 second quarter, revenue increased 7% and EBIT margins increased 70 basis points from the same period in 2004. Still, the company remains positioned behind a much larger competitor with superior scale and strong institutional accounts. The company also faces competition from local and regional independent auctioneers, wholesalers, and auto dealers. The growth of Internet auctions conducted by institutional sellers remains a competitive threat as well. ALLIED HOLDINGS: Files for Chapter 11 Protection in N.D. Georgia ---------------------------------------------------------------- Allied Holdings, Inc., along with 22 of its affiliates, filed for chapter 11 protection in the U.S. Bankruptcy Court for the Northern District of Georgia, in order to effect a financial restructuring. The Company and its subsidiaries are operating at all of its locations and anticipates that its various distribution and transportation services for the automotive industry will continue to operate in the normal course of business during the reorganization process. The Company will pay its vendors under normal terms for goods and services provided after Sunday's filing. DIP Financing To help fund its continuing operations during the reorganization, Allied has secured up to $230 million in debtor-in-possession financing from: -- GE Commercial Finance; -- Morgan Stanley Senior Funding, Inc.; and -- Marathon Asset Management. Subject to court approval, these funds will be available to help satisfy obligations associated with conducting the Company's business, including the payment of wages and benefits to active employees and retirees. "We have made significant progress during the last few years in our efforts to restructure and streamline our operations, including measures to lower overhead expenditures, as well as reduce costs across our non-bargaining employee base," Hugh E. Sawyer, Allied Holdings' President and Chief Executive Officer, said. "Our more efficient, focused organization has facilitated improvements in damage free deliveries, organic growth through new business with our customers, and reinforced the underlying potential of our core transportation services businesses at our operating subsidiaries. However, these positive developments have been significantly offset by automotive industry dynamics that continue to hamper our financial performance, including a sharp decline in new vehicle production, rising fuel costs, and increasing wage and benefit obligations under the Allied Automotive Group's master agreement with its Teamster-represented employees. "Reorganization under Chapter 11 will provide Allied with an opportunity and the forum to address these financial challenges, and we are committed to working cooperatively throughout the process to implement a plan of recovery that serves the Company, as well as the interests of its creditors, employees, customers, and suppliers. Our objective is to use this process to redesign our capital structure in order to lower our debt, reduce the multi-year cost increases associated with our contract with our Teamster-represented employees, address certain customer pricing issues, and take steps to improve our financial performance. "During this process, we will continue to provide quality service to our loyal customers," Mr. Sawyer continued. "We believe that the new $230 million credit facility will provide the opportunity for the Company to continue to operate in a reliable and stable manner. In addition, our vendors will be paid in full for all goods and services which are provided to the Company and our subsidiaries after the filing date. "We appreciate the ongoing efforts of our employees who have, over the past four years, made personal sacrifices and maintained their focus through a most challenging period. We will once again rely upon the dedication and support of our employees as we work together to build a more promising future for Allied Holdings." Allied Holdings' legal advisor is Troutman Sanders, LLP. The Company's financial advisor is Miller Buckfire & Co., LLC. Headquartered in Decatur, Georgia, Allied Holdings, Inc. -- http://www.alliedholdings.com/-- and its affiliates provide short-haul services for original equipment manufacturers and provide logistical services. The Company and 22 of its affiliates filed for chapter 11 protection on July 31, 2005 (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537). Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they estimated more than $100 million in assets and debts. ALLIED HOLDINGS: Case Summary & 40 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: Allied Holdings, Inc. aka Allied Holdings 160 Clairemont Decatur, Georgia 30030-2557 Bankruptcy Case No.: 05-12515 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Allied Automotive Group, Inc. 05-12516 Allied Systems, Ltd. (L.P.) 05-12517 Allied Systems (Canada) Company 05-12518 QAT, Inc. 05-12519 RMX LLC 05-12520 Transport Support LLC 05-12521 F.J. Boutell Driveway LLC 05-12522 Allied Freight Broker LLC 05-12523 GACS Incorporated 05-12524 Commercial Carriers, Inc. 05-12525 Axis Group, Inc. 05-12526 Kar-Tainer International LLC 05-12527 Axis Netherlands, LLC 05-12528 Axis Areta, LLC 05-12529 Logistic Technology, LLC 05-12530 Logistic Systems, LLC 05-12531 CT Services, Inc. 05-12532 Cordin Transport LLC 05-12533 Terminal Services LLC 05-12534 Axis Canada Company 05-12535 Ace Operations, LLC 05-12536 AH Industries Inc. 05-12537 Type of Business: The Debtor serves as the parent for Allied and Axis entities, which provide short-haul services for original equipment manufacturers and provide logistical services. Chapter 11 Petition Date: July 31, 2005 Court: Northern District of Georgia (Newnan) Debtors' Counsel: Jeffrey W. Kelley, Esq. Troutman Sanders, LLP Suite 5200, 600 Peachtree Street, Northeast Atlanta, Georgia 30308-2216 Tel: (404) 885-3383 Financial Condition of Allied Holdings, Inc., as of March 2005: Total Assets: $132,225,000 Total Debts: $179,895,000 Estimated Assets Estimated Debts ---------------- --------------- Allied Automotive Group, $10 Million to $50 Million to Inc. $50 Million $100 Million Allied Systems, Ltd. More than More than (L.P.) $100 Million $100 Million Allied Systems (Canada) $50 Million to More than Company $100 Million $100 Million QAT, Inc. $1 Million to $1 Million to $10 Million $10 Million RMX LLC $50,000 to $500,000 to $100,000 $1 Million Transport Support LLC $1 Million to $10 Million to $10 Million $50 Million F.J. Boutell Driveway LLC $1 Million to $10 Million to $10 Million $50 Million Allied Freight Broker LLC $1 Million to $50,000 to $10 Million $100,000 GACS Incorporated $1 Million to Less than $10 Million $50,000 Commercial Carriers, Inc. $1 Million to $1 Million to $10 Million $10 Million Axis Group, Inc. $10 Million to $10 Million to $50 Million $50 Million Kar-Tainer International $100,000 to $1 Million to LLC $500,000 $10 Million Axis Netherlands, LLC Less than Less than $50,000 $50,000 Axis Areta, LLC $1 Million to Less than $10 Million $50,000 Logistic Technology, LLC $100,000 to Less than $500,000 $50,000 Logistic Systems, LLC $500,000 to Less than $1 Million $50,000 CT Services, Inc. $10 Million to $500,000 to $50 Million $1 Million Cordin Transport LLC $500,000 to Less than $1 Million $50,000 Terminal Services LLC $1 Million to $100,000 to $10 Million $500,000 Axis Canada Company $500,000 to $1 Million $1 Million $10 Million Ace Operations, LLC Less than Less than $50,000 $50,000 AH Industries Inc. $500,000 to Less than $1 Million $50,000 Debtors' Consolidated List of 40 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Thomas M. Korsman Indenture Trustee $150,000,000 Vice President Wells Fargo Bank MAC N9303-120 Sixth and Marquette Minneapolis, MN 55479 Central State/H&W 3500 Benefits $2,468,019 Mellon Financial Services A/C Central States Pension Fund 5503 North Cumberland Road Chicago, IL 60656 Michelin Tire N.A./Atlanta Trade debt $827,625 P.O. Box 100860 Atlanta, GA 30384-0860 Volvo Action Service Trade debt $666,781 P.O. Box 26113 Greensboro, NC 27402-6113 Ford Motor Company/Claims Damage claims $605,293 Body and Assembly P.O. Box 651311 Charlotte, NC 28265-1311 IBM Corp. Trade debt $477,554 PNC Bank-ATL Lockbox IBM Corp-Lock Box 534151 1669 Phoenix Parkway Atlanta, GA 30349 SGS Automotive Service- Trade debt $419,652 Philadelphia P.O. Box 2505 Carol Stream, IL 60132-2502 GM of Canada Ltd.-ALZS Damage Claim $410,924 1908 Colonel Sam Drive Attn: Cashier 007002 Oshawa, ON L1H8P7 Cummins South, Inc. Trade debt $407,376 P.O. Box 116595 Atlanta, GA 30368-6595 Delavan Industries Inc. Trade debt $395,947 Buffalo P.O. Box 1715 Buffalo, NY 14240 Exotic Auto Transport Trip lease $341,081 P.O. Box 72 Lebanon, MO 65536 U.S. Security Associates Trade debt $333,651 Inc. P.O. Box 931703 Atlanta, GA 31193 Michelin North America/ Trade debt $301,322 Canada - Accounts Receivable P.O. Box 11291 Station Centreville Montreal, Quebec H3C 5G9 Canada Bandag Incorporated Trade debt $284,484 P.O. Box 92090 Chicago, IL 60675-2090 Servi-Flotte Inc. Trade debt $264,179 225, Chemin Des Iles Levis, Quebec G6V7M5 Canada Fleet Charge Trade debt $257,956 P.O. Box 930895 Kansas City, MO 64193-0895 Excel Transporting & Towing Trip lease $242,016 Fleet Charge Trade debt $210,079 Delavan Industries Inc. Trade debt $193,800 Buffalo Delavan Industries Inc. Trade debt $191,678 St. Catherines Daimler Chrysler ALZS Damage claims $163,562 American Express Trade debt $162,755 Bandag Canada Ltd. Trade debt $152,796 Deloitte & Touche- Atlanta Professional $152,353 Cottrell, Inc. Fixed assets $139,569 Sterling Truck & Trailer Trade debt $139,190 Sales Champion Auto Carriers, Inc. Trip lease $131,122 Brothers Auto Transport Inc. Trip lease $128,916 Hunt Enterprises Landlord $123,142 Truck Service of Virginia Trade debt $123,019 Inc. - Disputan B&D Management, Inc. Trade debt $122,304 W W Williams Fixed assets $116,997 Corporate Lodging Trade debt $109,149 P.A.T. Auto Transport, Inc. Trip lease $103,846 Goodyear Tire & Rubber Trade debt $100,997 Company - ATL Cintas/National Rental A/R Trade debt $100,257 State of Michigan/Treasury Taxes $100,000 Weller Truck Parts Trade payables $96,713 Clarke Power Services Inc. Trade payables $95,362 GM of Canada Ltd. - CANG Damage claims $91,475 ALLIED HOLDINGS: Ch. 11 Filing Cues S&P's Ratings to Tumble to D ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Allied Holdings Inc. to 'D' from 'CCC-' following the car hauling company's Chapter 11 bankruptcy filing. In addition, Standard & Poor's lowered its rating on Allied's senior unsecured debt to 'D' from 'CC'. The bankruptcy filing was precipitated by: * very difficult industry conditions, including reduced vehicle production, * weak financial performance, and * constrained liquidity that led to losses, reduced cash flow generation, and limited liquidity. Decatur, Georgia-based Allied had total debt (including the present value of operating leases) of about $290 million as of March 31, 2005. Industry conditions for automotive suppliers including Allied Holdings have deteriorated during the past year, as the North American car market remains soft. Despite some recent price increases, the car-hauling industry faced significant pricing pressure from the large auto manufacturers, which represent a majority of the company's revenues, and increasing labor costs. Additionally, high fuel prices hurt Allied's performance, despite implementation of fuel surcharges. As a result the company's earnings and cash flow measures were extremely weak with EBITDA interest coverage of about 1x and funds from operations to debt at around 6% as of March 31, 2005. "Although the most recent company financial report dates back to the first quarter of 2005 [March 2005], we believe Allied's earnings and cash are substantially short of the company's business plan," said Standard & Poor's credit analyst Eric Ballantine. Liquidity was believed to be very thin, because of poor cash flow generation, and the company recently filed its eighth bank amendment to cure certain bank covenant violations. AMERICAN MEDICAL: List of 20 Largest Unsecured Creditors -------------------------------------------------------- American Medical Enterprises, Inc., dba AME Laboratories, released a list of its 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Judy Rowley Duncan Judgment $1,500,662 c/o Kay Davenport 115 West Ferguson Street Tyler, TX 75702-7203 AME ESOP Loan $1,288,000 4321 Brownfield Highway Lubbock, TX 79407 Abbot Laboratories Goods & Services $87,420 P.O. Box 100997 Atlanta, GA 30384-0997 Biomerieux Goods & Services $67,740 DRL Labs Goods & Services $60,055 Kay Davenport Attorney fees $50,000 Bayer Healthcare LLC Goods & Services $40,760 Beckman Coulter, Inc. Goods & Services $37,317 Baylor All Saints Goods & Services $31,379 Labsco Goods & Services $27,711 Wadley Regional Medical Goods & Services $23,176 Center Citicorp Vendor Finance Goods & Services $22,558 Medical Center of Plano Goods & Services $22,419 Biorad Laboratories Goods & Services $21,010 Specialty Laboratories Goods & Services $20,962 Presbyterian Hospitals Goods & Services $16,072 ETMC Jacksonville Goods & Services $14,966 Mesquite Medical Center Goods & Services $14,268 Hillcrest Baptist Goods & Services $13,796 Longview Regional Medical Goods & Services $13,638 Headquartered in Houston, Texas, American Medical Enterprises, Inc., dba AME Laboratories, -- http://www.amelaboratories.com/-- owns and operated medical laboratories in Lubbock and Tyler, Texas. The Company filed for chapter 11 protection on June 6, 2005 (Bankr. S.D. Tex. Case No. 05-38729). Barbara Mincey Rogers, Esq., at Waldron & Schneider, L.L.P., represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed total assets of $2,281,949 and total debts of $4,660,838. AMERICAN NATURAL: Issues 4.2 Million Common Shares -------------------------------------------------- American Natural Energy Corporation (TSX Venture: ANR.U) has sold an aggregate of 4,202,636 shares of its common stock for an aggregate cash consideration of $504,316 through July 29, 2005. The securities were issued in reliance upon the exemption from the registration requirements of the US Securities Act of 1933, as amended, afforded by Regulation D and Section 4(2) and pursuant to Regulation S under the Act. The shares sold may not be reoffered or resold by the purchasers absent registration under the Act or an applicable exemption from the registration requirements of the Act. In addition, the shares are subject to a hold period and, subject to compliance with the requirements of the Act, may not be traded until Nov. 30, 2005, except as permitted by Canadian securities legislation and the TSX Venture Exchange. The proposed sale of the shares was previously announced on May 18, 2005. The Company proposed to use the proceeds to fund drilling activities and for working capital purposes. American Natural Energy Corporation is engaged in the acquisition, development, exploitation and production of oil and natural gas. The company operates in St. Charles Parish, Louisiana. Since December 31, 2001, the Company has engaged in several transactions, which it believes will enhance its oil and natural gas development, exploitation and production activities and our ability to finance further activities. ANEC is publicly traded on the TSX Venture Exchange as ANR.U. At Mar. 31, 2005, American Natural Energy Corporation's balance sheet showed a $10,991,124 stockholders' deficit, compared to a $9,596,356 deficit at Dec. 31, 2004. Going Concern Doubt PricewaterhouseCoopers, LLP, expressed substantial doubt about American Natural Energy Corporation's ability to continue as a going concern after it audited the Company's financial statements for the year ended Dec. 31, 2004. The auditing firm points to the Company's accumulated deficit and working capital deficiencies. The Company experienced a net loss of $1.5 million in the three month period ended March 31, 2005, and has a working capital deficiency and an accumulated deficit at March 31, 2005, all of which lead to questions concerning its ability to meet its obligations as they come due. The Company also has a need for substantial funds to develop oil and gas properties and repay borrowings. Historically the Company has financed its activities using private debt and equity financing. American Natural Energy has no line of credit or other financing agreement providing borrowing availability. As a result of the losses incurred and current negative working capital and other matters described, there is no assurance that the carrying amounts of its assets will be realized or that liabilities will be liquidated or settled for the amounts recorded. AMERUS GROUP: Fitch Holds BB+ Rating on Trust-Preferred Issue ------------------------------------------------------------- Fitch Ratings assigned a 'BBB' rating to the $250 million AmerUs Group Co. senior debt issuance maturing in 2015. The Rating Outlook is Stable. The proceeds from the debt offering will be used to redeem the optionally convertible equity-linked accreting notes, which became callable after AmerUs stock closed above $47.85 for 20 of 30 consecutive trading days. The balance of the proceeds will be used to repay the outstanding balance on a revolving line of credit, which was drawn down to retire $125 million in maturing senior debt in June. The three notch gap between AmerUs's insurer financial strength and long-term issuer ratings reflects the level of financial leverage, as well as pretax earning's ability to cover interest payments. According to Fitch's calculations, pro forma June 30, 2005 equity- adjusted debt-to-total capital at AmerUs was 20%. The financial leverage calculation eliminated the OCEANs and the bank debt outstanding at the time. AmerUs Group Co.'s fixed-charge coverage was 7.5 times (x) 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. 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. AmerUs Group Co., an insurance holding company, is headquartered in Des Moines, Iowa and reported total assets of $24 billion and stockholders' equity of $1.7 billion at June 30, 2005. These debts have Stable Rating Outlooks by Fitch: AmerUs Group Co. -- Senior notes assigned 'BBB'; -- OCEANs remain 'BBB-'; -- PRIDES remain 'BBB'. AmerUs Capital I -- Trust-preferred remains 'BB+'. AmerUs Life Insurance Co. -- Surplus note remains 'BBB+'; -- Insurer financial strength remains 'A'. Indianapolis Life Insurance Co -- Surplus note remains 'BBB+'; -- Insurer financial strength remains 'A'. American Investors Life Insurance Co. -- Insurer financial strength remains 'A'. Bankers Life Insurance Co. of New York -- Insurer financial strength remains 'A'. ARCAP: S&P Places Low-B Ratings on Four Certificate Classes ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to ARCap 2005-RR5 Resecuritization Inc.'s $313.4 million CMBS pass-through certificates series 2005-RR5. The preliminary ratings are based on information as of July 29, 2005. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of securities and the geographic and property type diversity of the mortgaged properties securing the underlying CMBS collateral. The collateral pool consists of 26 classes of pass-through certificates from 17 CMBS transactions and one Re- REMIC transaction. Of the 26 classes of certificates, 21 (76.5% of the collateral) are conduit CMBS certificates and five (23.5% of the collateral) are Re-REMIC certificates. All of the Re-REMIC certificates in the transaction were previously retained by ARCap REIT Inc. from its prior ARCap 2004-RR3 transaction. Of the 17 underlying CMBS deals represented in the current transaction, 13 of the same deals were included in the ARCap 2004-RR3 transaction. A copy of Standard & Poor's complete presale report for this transaction can be found on RatingsDirect, Standard & Poor's Web- based credit analysis system, at http://www.ratingsdirect.com/ The presale can also be found on the Standard & Poor's Web site at http://www.standardandpoors.com/ Preliminary Ratings Assigned ARCap 2005-RR5 Resecuritization Inc. Class Rating Preliminary Recommended amount credit support(%) ----- ------ ----------- ----------------- A-1 AAA $26,100,000 91.670 A-2 AAA $26,100,000 83.340 A-3 AAA $26,150,000 75.000 B AAA $21,938,000 68.000 C AA $21,938,000 61.000 D AA $3,134,000 60.000 E A+ $12,536,000 56.000 F A- $9,402,000 53.000 G BBB+ $9,402,000 50.000 H BBB $15,670,000 45.000 J BBB- $6,268,000 43.000 K BB+ $9,402,000 40.000 L BB+ $9,402,000 37.000 M BB $9,402,000 34.000 N BB $9,402,000 31.000 O N.R. $97,155,127 N/A X* N.R. $78,350,000 N/A * Interest-only class with a notional amount. N.R. -- Not rated. N/A -- Not applicable. AURA SYSTEMS: Court Approves $1.2 Million Interim Financing ----------------------------------------------------------- Aura Systems, Inc. (OTCBB: AURA) secured approval from the U.S. Bankruptcy Court for the Central District of California of a $1.2 million interim financing from an undisclosed lender. The company has resumed normal day-to-day operations subject to supervision by the bankruptcy court and will continue to deliver product to customers. The Court will convene a hearing on Aug. 30, 2005, to consider approval of a final DIP financing. Headquartered in El Segundo, California, Aura Systems, Inc., -- http://www.aurasystems.com/-- develops and sells AuraGen(R) mobile induction power systems to the industrial, commercial and defense mobile power generation markets. The Company filed for chapter 11 protection on June 24, 2005 (Bankr. C.D. Calif. Case No. 05-24550). Ron Bender, Esq., Levene Neale Bender Rankin & Brill LLP represent the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it reported $18,036,502 in assets and $28,919,987 in debts. BEAR STEARNS: Fitch Assigns BB Rating on $13.29MM of Certificates ----------------------------------------------------------------- SACO I Trust asset-backed certificates, series 2005-5, composed of 2 groups, are rated by Fitch Ratings: Group I -- $391.45 million class I-A 'AAA'; -- $56.57 million class I-M-1 'AA'; -- $12.45 million class I-M-2 'AA-'; -- $13.01 million class I-M-3 'A+'; -- $10.75 million class I-M-4 'A'; -- $9.05 million class I-M-5 'A-'; -- $10.18 million class I-B-1 'BBB+'; -- $8.49 million class I-B-2 'BBB'; -- $7.07 million class I-B-3 'BBB'; -- $13.29 million class I-B-4 'BB'. Group II -- $129.19 million class II-A 'AAA'; -- $13.81 million class II-M-1, II-M-2, II-M-3 'AA+'; -- $2.86 million class II-M-4 'AA'; -- $2.61 million class II-M-5 'AA-'; -- $2.53 million class II-M-6 'A+'; -- $2.04 million class II-M-7 'A'; -- $1.96 million class II-M-8 'A-'; -- $1.63 million class II-M-9 'BBB+'; -- $1.55 million class II-B-1 'BBB'; -- $1.55 million class II-B-2 'BBB-'. Group I mortgage loans consist of fixed-rate, conventional, closed-end subprime mortgage loans that are secured by second liens on one-to-four-family residential properties. Group II loans consist of home equity lines of credit loans made under certain home equity revolving credit loan agreements secured by first- and second-lien mortgages on one- to four-family residential properties with initial five-year, 10-year or 15-year draw periods limited to interest-only payments, generally followed by a 20-year amortized repayment period. The Group I 'AAA' rating on the senior certificates reflects the 30.80% credit enhancement provided by the 10.00% class I-M-1, 2.20% class I-M-2, 2.30% class I-M-3, 1.90% class I-M-4, 1.60% class I-M-5, 1.80% class I-B-1, 1.50% class I-B-2, 1.25% class I- B-3, and 2.35% privately held class I-B-4, as well as 5.90% over- collateralization. The Group II 'AAA' rating on the senior certificates reflects the 20.94% credit enhancement provided by the 3.45% class II-M-1, 3.05% class II-M-2, 1.95% class II-M-3, 1.75% class II-M-4, 1.60% class II-M-5, 1.55% class II-M-6, 1.25% class II-M-7, 1.20% class II-M-8, 1.00% class II-M-9, 0.95% class II-B-1, and 0.95% class II-B-2, as well as 2.24% OC. Additionally, all classes have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the mortgage collateral, strength of the legal and financial structures, and EMC Mortgage Corporation's servicing capabilities as master servicer. As of the cut-off date, the Group I mortgage loans have an aggregate balance of $565,680,964. The weighted average mortgage rate is approximately 10.532% and the weighted average remaining term to maturity is 210 months. The average cut-off date principal balance of the mortgage loans is $44,388. The weighted average original loan-to-value is 97.95%. The properties are primarily located in California (22.30%), Florida (9.56%), Georgia (8.40%), Arizona (8.08%), and Texas (5.78%). As of the cut-off date, the Group II HELOC mortgage loans have an aggregate balance of $163,413,106. The weighted average current coupon is 7.677% and the weighted average remaining term to maturity is 307 months. The average drawn balance is $49,806. The average credit limit is $57,474. The weighted average credit limit utilization rate is 89.52% and the weighted average current credit score is 718. The principal originators of the Group I loans are: SouthStar Funding, LLC, with respect to 15.67% of the group I loans, and Finance America, LLC, with respect to 13.11% of the group I loans. The remainder of the group I loans were originated by various originators. The principal originators of the Group II HELOC loans are: Quicken Loans Inc, with respect to approximately 61.37% of the Group II HELOC loans; Impac Funding Corporation, with respect to approximately 12.40% of the group II loans, Plaza Home Mortgage Inc., with respect to approximately 12.19% of the group II HELOC loans; and GreenPoint Mortgage Funding, Inc., with respect to approximately 10.91% of the group II HELOC loans. The remainder of the group II HELOC loans were originated by various originators. BOSTON COMMS: Placing $41 Million in Escrow for Patent Lawsuit -------------------------------------------------------------- Boston Communications Group, Inc. (Nasdaq: BCGI) entered into a Funding of Security for Appeal Agreement with Cingular Wireless LLC, a co-defendant in a patent infringement action currently pending before the U.S. District Court for the District of Massachusetts. The lawsuit was filed by Freedom Wireless, Inc., against: -- Boston Communications, -- AT&T Wireless PCS -- Airtouch Communications, Inc. -- Alltel Communications Products, Inc. -- Bell Atlantic Mobile -- Bellsouth Cellular, Corp. -- Bellsouth Mobility, Inc. -- CMT Partners -- Primeco Personal Communications, L.P. -- Rogers Wireless, Inc. -- Southwestern Bell Mobile Systems, Inc. -- Western Wireless Corporation -- Cingular Wireless LLC on Oct. 30, 2000 (Case No. 00-12234). This agreement is subject to mutual acceptance of an escrow agent and related escrow terms. Terms of the Agreement Under the terms of the Agreement, the Company has agreed to place $41 million into escrow as security in the event that a bond or other security must be posted for more than $41 million. If a final judgment in the lawsuit is rendered against the Company and its co-defendants, and the joint and several damages exceed $41 million, Cingular has agreed to post security through an appeal bond in exchange for placing the funds into escrow. Cingular has also agreed to dismiss, without prejudice, the action filed by Cingular against bcgi in May 2005. Cingular originally filed this action in an effort to enforce Cingular's indemnity rights against bcgi as a result of the Freedom Wireless verdict. The agreement is expected to allow bcgi to proceed with an appeal and potentially avoid exposure to bankruptcy while the appeal is pending, in the event that a final judgment against bcgi is rendered for damages of more than $41 million, without any requirement for bcgi to post additional security. The agreement may be terminated by either party and all or a portion of the $41 million in escrow may be disbursed back to bcgi, prior to the filing of a bond or other security if: -- the Freedom lawsuit is settled, dismissed or satisfied; -- the final judgment ruling in the lawsuit is against the defendants but damages are awarded for less than $41 million; or -- bcgi commences bankruptcy, receivership or a similar insolvency proceeding. Cingular is not obligated to provide the security for the payment of any portion of the damages for which Cingular is not jointly and severally liable. Freedom Wireless Litigation The non-jury trial on inequitable conduct concluded on July 26, 2005, and the Court has ordered the parties to file findings and conclusions with the Court on Aug. 15, 2005. The Company intends to file motions for judgment as a matter of law and a motion for a new trial or, in the alternative, a reduction in the damages awarded by the jury. The Company expects that the Court will rule on each of these matters in addition to determining the final judgment on the case in due course, sometime after Aug. 15, 2005. If the Court rules in favor of bcgi and its co-defendants in the non-trial, the patents held by Freedom Wireless would become unenforceable, a decision that Freedom Wireless may choose to appeal. If the Court rules against bcgi and the co-defendants in the non- jury trial: -- the Court could reduce the amount of the $128 million jury verdict based on the Company's expected motion for a reduction in the damages. However, the Court could also increase the damages, up to three times the award plus attorneys' fees. Interest as well as damages from Jan. 1, 2005 to the date of the judgment could also be applied to the damages award. The Court could also enter an injunction against use of the allegedly infringing technology. The entry of such an injunction could substantially impair bcgi's business and its ability to continue to provide its prepaid wireless or Real-Time Billing service bureau as currently offered in the United States. -- the Company expects to appeal the Court's decision to the Court of Appeals for the Federal Circuit. The Company has engaged the law firm of Finnegan, Henderson, Farabow, Garrett & Dunner, L.L.P to represent the Company in the appeal. -- the Court may require the Company to provide collateral or post a bond to stay execution of the Court's judgment and any injunction that the Court may enter, pending resolution of the appeal. The bond required to stay execution of the money judgment is ordinarily 110% of the final judgment, unless otherwise ordered by the Court. Depending on the amount of the final judgment, this could exceed bcgi's ability to pay. If the Company is unable to provide adequate collateral or to post a sufficient bond or is enjoined during the appeals process, or if the Company is unable to get an adverse judgment reversed and is unable to negotiate a commercially acceptable license with Freedom Wireless to allow bcgi to continue to provide its products and services, then it will not be possible for the Company to provide the prepaid wireless or Real-Time Billing service bureau as currently offered in the United States. In that event, the Company may not be able to continue its ongoing operations or may need to seek protections under Chapter 11 of the Bankruptcy Code. The parties have not been able to reach a settlement, even through court-ordered mediation. While the Company does not believe that it infringes these patents and believes that the patents are invalid in light of prior art and other reasons, in light of the adverse jury verdict, the Company believes it is probable that a loss contingency exists. Boston Communications Group, Inc. (Nasdaq: BCGI) -- http://www.bcgi.net/-- develops products and services that enable wireless operators to fully realize the potential of their networks. bcgi's access management, billing, payment and network solutions help operators rapidly deploy and manage innovative voice and data services for subscribers. Available as licensed products and fully managed services, bcgi's solutions power carriers and enable MVNOs with market-leading implementations of prepaid wireless, postpaid billing, wireless account funding and m-commerce. bcgi was founded in 1988 and is listed on the Russell 2000 index. BOWNE & CO: Adopts Plan to Repurchase $35 Million of Common Stock ----------------------------------------------------------------- Bowne & Co., Inc. (NYSE: BNE) entered into a Rule 10b5-1 trading plan with a broker to facilitate the repurchase of up to $35 million of its shares of common stock under its previously announced stock repurchase program. Rule 10b5-1 allows a company to purchase its shares at times when it otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods. The shares to be repurchased under the company's 10b5-1 plan would be part of the stock repurchase program approved by the Bowne Board of Directors in December 2004 to repurchase up to $75 million of its common stock over a two-year period. Under the company's authorized $75 million stock repurchase program, 2,696,161 shares of its common stock were repurchased pursuant to an overnight share repurchase plan entered into with Banc of America in the fourth quarter 2004 for $40 million. Final settlement under the overnight share repurchase plan occurred on May 24, 2005, and the company has made no further share repurchases since such date. The 10b5-1 share purchase period commenced yesterday, Aug. 1, 2005. Purchases will be effected by a broker and will be based upon the guidelines and parameters of the 10b5-1 plan. The aggregate amount of shares purchased pursuant to the plan will not exceed $35 million (excluding commissions, taxes and other charges and expenses). There is no guarantee as to the exact number of shares that will be repurchased under the stock repurchase program, and the company may discontinue purchases at any time. Repurchased shares would be returned to the status of authorized but un-issued shares of common stock. Founded in 1775, Bowne & Co., Inc. -- http://www.bowne.com/-- is a global leader in providing high-value solutions that empower its clients' communications. Bowne & Co. combines its capabilities with superior customer service, new technologies, confidentiality and integrity to manage, repurpose and distribute a client's information to any audience, through any medium, in any language, anywhere in the world. * * * Bowne & Co.'s 5% convertible subordinated notes due Oct. 1, 2033, carry Moody's Investors Service's and Standard & Poor's single-B ratings. BOWNE & CO: Earns $4 Million of Net Income in Second Quarter ------------------------------------------------------------ Bowne & Co., Inc. (NYSE: BNE) reported 2005 second quarter earnings from continuing operations of $7.8 million, compared to earnings of $9.7 million for the second quarter of 2004. Revenue was $205 million in the second quarter, compared to $204 million in the comparable quarter of 2004. Financial Print revenue for the second quarter of 2005 increased $3.1 million quarter-over-quarter, the result of increased compliance reporting and mutual fund revenue. The 2005 and 2004 results from continuing operations exclude Bowne Global Solutions, which is to be sold to Lionbridge Technologies, and the 2004 results exclude Bowne Business Solutions. For the six months ended June 30, 2005, income from continuing operations was $12.0 million, versus $12.9 million for the same period last year. Revenue for the six months ended June 30, 2005 was $373.2 million, down 2% from $382.3 million reported in 2004, the result of a 16% decline in transactional financial print, which was offset by a 7% increase in non-transactional revenue. "The second quarter was an important time for us in terms of our strategic direction as a company," said Bowne Chairman and Chief Executive Officer Philip E. Kucera. "With the pending sale of Bowne Global Solutions, we will sharpen our focus on growing our financial print and digital print businesses, which are core to our strategy." David J. Shea, Bowne President and Chief Operating Officer, added, "We're pleased that our non-transactional business continues to perform well. However, in light of the continuing decline in overall transactional filings, we are cautious about the remainder of the year." Bowne Financial Print For the second quarter, Financial Print reported revenue of $197.6 million, compared to $194.5 million for the same period last year. Offsetting a transactional revenue decrease of 10%, non-transactional revenue, which includes mutual fund and compliance revenue, increased 8% over 2004. Segment profit for the quarter, as a percentage of revenue, was 14.7%, compared to 16.1% for the same period in 2004. Litigation Solutions Litigation Solutions' second quarter and year-to-date revenue decreased $2.1 and $2.6 million, respectively, from last year; however, segment profit increased $0.3 million as compared to the first quarter of 2005 and $0.5 million year-over-year. Bowne Global Solutions The 2005 and 2004 results from continuing operations exclude Bowne Global Solutions, which the Company has agreed to sell, and is reported as a discontinued operation. In addition, the 2004 results from continuing operations exclude Bowne Business Solutions, which is also reported as a discontinued operation. Including the discontinued operations, net income for the 2005 second quarter was $4 million, compared to $11.2 million in the same period in 2004. The results of discontinued operations in 2005 include numerous expenses specifically related to the sale of BGS, including certain transaction costs and tax expenses. Segment profit for BGS for the three and six-month periods ended June 30, 2005 was $5.8 million and $8.1 million, respectively, compared to $3.4 million and $5.4 million for the three and six- month periods ended June 30, 2004. Overnight Share Repurchase Program Bank of America Securities completed the Overnight Share Repurchase program on May 24, 2005, and after giving effect to the final settlement and a price adjustment in the form of additional shares, the Company had effected the purchase of a total of 2,696,161 shares at an average price of $14.85. To date, the Company has not made any purchases under its previously announced $35 million open market purchase program. Days sales outstanding increased to 66 days at June 30, 2005 from 64 days at June 30, 2004. Net cash used in operations for the period ended June 30, 2005 was $41.3 million versus net cash used in operations of $17.6 million in 2004. Net debt at June 30, 2005 was $47.8 million compared to net debt of $143.6 million in June 2004. Financial Print work-in-process inventory was $29.0 million at June 30, 2005, compared to $20.8 million at June 30, 2004 and $16.8 million at December 31, 2004. Corporate spending decreased $0.6 million from 2004. Founded in 1775, Bowne & Co., Inc. -- http://www.bowne.com/-- is a global leader in providing high-value solutions that empower its clients' communications. Bowne & Co. combines its capabilities with superior customer service, new technologies, confidentiality and integrity to manage, repurpose and distribute a client's information to any audience, through any medium, in any language, anywhere in the world. * * * Bowne & Co.'s 5% convertible subordinated notes due Oct. 1, 2033, carry Moody's Investors Service's and Standard & Poor's single-B ratings. CANADIAN HOTEL: Debenture Redemption Cues S&P to Withdraw Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew all its ratings, including the 'BB-' long-term issuer credit rating, on Canadian Hotel Income Properties Real Estate Investment Trust by agreement with the issuer. CHIP's Series B unsecured debenture (C$50 million, 7.79% senior unsecured) was redeemed on June 10, 2005, and refinanced with secured mortgage debt. CHIP currently has one remaining series of debentures with C$4.8 million outstanding (Series A, 7.70% senior unsecured due Feb. 4, 2008). At the time of withdrawal, the credit profile of the issue outstanding continues to perform within the range of expectations and assumptions incorporated into the current rating. The ratings have been withdrawn at the request of management. CEDAR PARK: Case Summary & 4 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Cedar Park Properties, L.L.C. 1490 East Whitestone Boulevard, Suite 200 Cedar Park, Texas 78613 Bankruptcy Case No.: 05-14359 Chapter 11 Petition Date: July 29, 2005 Court: Western District of Texas (Austin) Judge: Frank R. Monroe Debtor's Counsel: Joseph D. Martinec, Esq. Martinec, Winn, Vickers & McElroy, P.C. 919 Congress Avenue, Suite 1500 Austin, Texas 78701 Tel: (512) 476-0750 Fax: (512) 476-0753 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million Debtor's 4 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Stoker Management, Inc. $6,699 dba Jani-King of Austin 11940 Jollyville Road, #220 South Austin, TX 78759 Pedernales Electric Cooperative $3,312 P.O. Box 1 Johnson City, TX 78636 K.I.S.S., Inc. $2,270 13498 Pond Springs Road, Building A Austin, TX 78729 Otis Elevator $524 P.O. Box 730400 Dallas, TX 75373 CITICORP MORTGAGE: Fitch Places B Rating on $541K Class B Certs. ---------------------------------------------------------------- Fitch Ratings rates these Citicorp Mortgage Securities, Inc.'s REMIC pass-through certificates, series 2005-4: -- $527,185,494 classes IA-1 through IA-8, IIA-1, IIIA-1 through IIIA-4 and A-PO certificates (senior certificates) 'AAA'; -- $7,570,000 class B-1 'AA'; -- $2,163,000 class B-2 'A' -- $1,352,000 class B-3 'BBB'; -- $1,081,000 class B-4 'BB'; -- $541,000 class B-5 'B'. The $811,512 class B-6 is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 2.50% subordination provided by the 1.40% class B-1, the 0.40% class B- 2, the 0.25% class B-3, the 0.20% privately offered class B-4, the 0.10% privately offered class B-5, and the 0.15% privately offered class B-6. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and CitiMortgage, Inc.'s servicing capabilities (rated 'RPS1' by Fitch) as primary servicer. The mortgage loans have been divided into three pools of mortgage loans. Pool I, with an unpaid aggregate principal balance of $363,006,457, consists of 677 recently originated, 25-30 year fixed-rate mortgage loans secured by one- to four-family residential properties located primarily in California (39.78%) and New York (14.29%). The weighted average current loan to value ratio of the mortgage loans is 67.58%. Condo properties account for 7.45% of the total pool and co-ops account for 4.84%. Cash-out refinance loans represent 24.8% of the pool and there are no investor properties. The average balance of the mortgage loans in the pool is approximately $536,199. The weighted average coupon of the loans is 5.922% and the weighted average remaining term to maturity is 358 months. Pool II, with an unpaid aggregate principal balance of $94,471,655, consists of 176 recently originated, 12-15 year fixed-rate mortgage loans secured by one- to four-family residential properties located primarily in California (25.17%) and New York (8.30%). The weighted average CLTV of the mortgage loans is 57.15%. Condo properties account for 6.18% of the total pool and co-ops account for 2.69%. Cash-out refinance loans represent 30.02% and there are no investor properties. The average balance of the mortgage loans in the pool is approximately $536,771. The WAC of the loans is 5.442% and the WAM is 177 months. Pool III, with an unpaid aggregate principal balance of $83,225,894, consists of 159 recently originated, 30 year fixed- rate relocation mortgage loans secured by one- to four-family residential properties located primarily in California (19.04%) and New York (8.02%). The weighted average CLTV of the mortgage loans is 73.57%. Condo properties account for 5.0% of the total pool. There are no co-op, cash-out refinance loans or investor properties. The average balance of the mortgage loans in the pool is approximately $523,433. The WAC of the loans is 5.532% and the WAM is 356 months. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation', available on the Fitch Ratings web site at http://www.fitchratings.com/ The mortgage loans were originated or acquired by CMI and in turn sold to CMSI. A special purpose corporation, CMSI, deposited the loans into the trust, which then issued the certificates. U.S. Bank National Association will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CITIGROUP MORTGAGE: Fitch Puts Low-B Rating on Two Cert. Classes ---------------------------------------------------------------- Fitch rates Citigroup Mortgage Loan Trust Inc., mortgage pass- through certificates, series 2005-3: Loan Group II -- $791,898,100 classes II-A1, II-A2, II-A2A, II-A2B, II-A3, II-A4, II-A4A-1, II-A4A-2, II-A4B-1, II-A4B-2 and II-R (senior certificates) 'AAA'; -- $19,022,000 class II-B1 'AA'; -- $5,789,000 class II-B2 'A'; -- $3,722,000 class II-B3 'BBB'; -- $2,068,000 privately offered class II-B4 'BB'; -- $2,068,000 privately offered II-B5 'B'. The privately offered II-B6 ($2,481,324) is not rated by Fitch. The 'AAA' rating on the senior certificates on loan group II reflects the 4.25% enhancement provided by the 2.30% class II-B1, 0.70% class II-B2, 0.45% class II-B3, 0.25% class II-B4, 0.25% class II-B5 and 0.30% class II-B6. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, the primary servicing capabilities of Countrywide Home Loans Servicing LP (rated 'RPS1' by Fitch), GMAC, (rated 'RPS1' by Fitch) and Wells Fargo Bank, N.A. (rated 'RPS1' by Fitch), National City (rated 'RPS2-' by Fitch) and the master servicing capabilities of CitiMortgage, Inc., (rated 'RMS1-' by Fitch). Group II will contain 1887 conventional, adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $827,048,424. The mortgage loans will be divided into four additional subgroups, loan group II-1, loan group II-2, loan group II-3 and loan group II-4. All the mortgage loans were originated by Countrywide Home Loans, Inc. Wells Fargo, National City and Quicken Loans, Inc and were then acquired directly by Citigroup Global Markets Realty Corp. Group II-1 consists of 149 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single- family residential properties with an aggregate principal of $66,178,050. The mortgage rates adjust every six months or 12 months commencing at the end of an initial fixed-rate period of three years following origination. Approximately 5.14% of the group II-1 mortgage loans have interest only periods of two years, following the date of origination. The average principal balance of the loans in this pool is approximately $444,147. The mortgage pool has a weighted average original loan-to-value ratio of 68.1%. Rate/Term and cash-out refinance loans account for 32.72% and 14.47% of the pool, respectively. The weighted average FICO score is 727. The states with the largest concentrations are California (23.14%), Illinois (8.37%) and Massachusetts (8.36%). Group II-2 consists of 785 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single- family residential properties with an aggregate principal of $434,052,991. The mortgage rates adjust every six months or 12 months commencing at the end of an initial fixed-rate period of five years following origination. Approximately 89.49% and 0.16% of the group II-2 mortgage loans have interest only periods of one year or two years, respectively, following the date of origination. The average principal balance of the loans in this pool is approximately $552,933. The mortgage pool has a weighted average OLTV of 73.9%. Rate/Term and cash-out refinance loans account for 12.91% and 5.15% of the pool, respectively. The weighted average FICO score is 742. The states with the largest concentrations are California (37.44%), Virginia (7.68%) and Florida (6.94%). Group II-3 consists of 392 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single- family residential properties with an aggregate principal of $89,980,894. The mortgage rates adjust every six months or 12 months commencing at the end of an initial fixed-rate period of five years following origination. Approximately 88.15% and 1.45% of the group II-3 mortgage loans have interest only periods of one year or two years, respectively, following the date of origination. The average principal balance of the loans in this pool is approximately $229,543. The mortgage pool has a weighted average OLTV of 78.2%. Rate/Term and cash-out refinance loans account for 5.68% and 3.72% of the pool, respectively. The weighted average FICO score is 740. The states with the largest concentrations are California (15.73%), Florida (11.93%) and Virginia (7.53%). Group II-4 consists of 561 conventional, fully amortizing, adjustable-rate mortgage loans secured by first liens on single- family residential properties with an aggregate principal of $236,836,487. The mortgage rates adjust every six months or 12 months commencing at the end of an initial fixed-rate period of seven years following origination. Approximately 78.62% and 10.62%of the group II-4 mortgage loans have interest only periods of seven years or 10 years, respectively, following the date of origination. The average principal balance of the loans in this pool is approximately $422,168. The mortgage pool has a weighted average OLTV of 74.4%. Rate/Term and cash-out refinance loans account for 16.44% and 13.09% of the pool, respectively. The weighted average FICO score is 738. The states with the largest concentrations are California (27.98%), Florida (6.75%) and Virginia (6.68%). None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. For additional information on Fitch's rating criteria regarding predatory lending legislation, please see the press release issued May 1, 2003 entitled 'Fitch Revises Rating Criteria in Wake of Predatory Lending Legislation', available on the Fitch Ratings web site at http://www.fitchratings.com/ U.S. Bank National Association will serve as trustee. Citigroup Mortgage Loan Trust Inc., a special purpose corporation, deposited the loans in the trust which issued the certificates. For federal income tax purposes, an election will be made to treat the trust as multiple real estate mortgage investment conduits. COMDIAL CORP: Court Okays Platzer Swergold as Panel's Lead Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware gave the Official Committee of Unsecured Creditors of Comdial Corporation and its debtor-affiliates permission to employ Platzer, Swergold, Karlin, Levine, Goldberg & Jaslow, LLP as its lead counsel. Platzer Swergold will: a) advise and represent the Committee with respect to proposals and pleadings submitted by the Debtors or other parties-in- interest to the Court or the Committee; b) represent the Committee with respect to plan or plans of reorganization and disposition of the Debtors' assets proposed in the chapter 11 cases; c) assist the Committee in examination of the Debtors' affairs and a review of their operations; d) attend hearings, drafting pleadings and advocate the positions that further the interests of the creditors represented by the Committee; and e) perform all other legal services that are in the best interests of the Committee, including the services delineated in Section 1103 of the Bankruptcy Code. Sydney G. Platzer, Esq., a Partner of Platzer Swergold, is one of the lead attorneys for the Committee. Mr. Platzer reports Platzer Swergold's professionals bill: Designation Hourly Rate ----------- ----------- Partners $395 - $595 Associates $150 - $395 Paralegals $125 Platzer Swergold assures the Court that it does not represent any interest materially adverse to the Committee, the Debtors or their estates. Headquartered in Sarasota, Florida, Comdial Corporation -- http://www.comdial.com/-- and its affiliates develop and market sophisticated communications products and advanced phone systems for small and medium-sized enterprises. The Company and its debtor-affiliates filed for chapter 11 protection on May 26, 2005 (Bankr. D. Del. Case No. 05-11492). Jason M. Madron, Esq., and John Henry Knight, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $30,379,000 and total debts of $35,420,000. COMDIAL CORP: Jaspan Schlesinger Approved as Panel's Local Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware gave the Official Committee of Unsecured Creditors of Comdial Corporation and its debtor-affiliates permission to employ Jaspan Schlesinger Hoffman LLP as its local counsel. Jaspan Schlesinger will: a) advise and represent the Committee in connection with proposals and pleadings submitted by the Debtors or other parties-in-interest to the Committee or the Court; b) assist the Committee in the examination and review of the Debtors' affairs and operations, and advise the Committee in the progress of the Debtors' chapter 11 cases; c) represent the Committee with respect to any plan or plan of reorganization and any sale or disposition of the Debtors' assets; d) attend hearings, drafting pleadings and advocate the positions taken by the Committee to further its interests in the Debtors' chapter 11 cases; and e) perform all other legal services that are consistent with its role as the Committee's local counsel. Frederick B. Rosner, Esq., a Partner of Jaspan Schlesinger, reports the Firm's professionals bill: Designation Hourly Rate ----------- ----------- Partners $250 Associates $180 - $250 Paralegals $140 Jaspan Schlesinger assures the Court that it does not represent any interest materially adverse to the Committee, the Debtors or their estates. Headquartered in Sarasota, Florida, Comdial Corporation -- http://www.comdial.com/-- and its affiliates develop and market sophisticated communications products and advanced phone systems for small and medium-sized enterprises. The Company and its debtor-affiliates filed for chapter 11 protection on May 26, 2005 (Bankr. D. Del. Case No. 05-11492). Jason M. Madron, Esq., and John Henry Knight, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $30,379,000 and total debts of $35,420,000. COMM 2005-C6: S&P Puts Low-B Ratings on Six Certificate Classes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to COMM 2005-C6's $2.3 billion commercial mortgage pass- through certificates series 2005-C6. The preliminary ratings are based on information as of July 29, 2005. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Classes A-1, A-2, A-3, A-4, A-AB, A-5A, A-5B, A-1A, A-J, B, C, D, and X-P are currently being offered publicly. Standard & Poor's analysis determined that, on a weighted average basis, the pool has a debt service coverage of 1.54x, a beginning LTV of 95.4%, and an ending LTV of 86.9%. A copy of Standard & Poor's complete presale report for this transaction can be found on RatingsDirect, Standard & Poor's Web- based credit analysis system, at http://www.ratingsdirect.com/ The presale can also be found on the Standard & Poor's Web site at http://www.standardandpoors.com/ Preliminary Ratings Assigned COMM 2005-C6 Class Rating Preliminary Recommended amount credit support(%) ----- ------ ----------- ----------------- A-1 AAA $48,000,000 20.000 A-2 AAA $185,500,000 20.000 A-3