TCR_Public/060905.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Tuesday, September 5, 2006, Vol. 10, No. 211

                             Headlines

655 CORP: Case Summary & 19 Largest Unsecured Creditors
2000 AD: Case Summary & 19 Largest Unsecured Creditors
ADELPHIA COMMS: Court Approves $15.86MM Settlement with iN DEMAND
ADS LLC: Case Summary & 20 Largest Unsecured Creditors
ALLIED HOLDINGS: Wants December 23 as Lease Rejection Deadline

ALLIED HOLDINGS: Intends to Sign New Brokerage Pact with USI
AMERICAN MEDIA: Names Jack Craven as Chief Financial Officer
ANCHOR GLASS: Argues 33 Retiree Claims are Invalid
ASARCO LLC: Proposes Uniform Procedures for Settling Tax Claims
ASARCO LLC: Wants to Assume CBRY Stockholders Agreement

ATARI INC: Receives Notice of Delisting From Nasdaq Global Market
AURIGA LABORATORIES: June 30 Working Capital Deficit Tops $1.7MM
BEISWENGER HOCH: Case Summary & 20 Largest Unsecured Creditors
CALBATECH INC: Balance Sheet Upside-Down by $5.26M at June 30
CLARION TECH: Shareholders' Deficit Tops $97.5 Mil. at July 1

COLLINS & AIKMAN: Exchanging Secured Debt for Stock Under Plan
COLLINS & AIKMAN: Outlines Business Plan in Disclosure Statement
DANA CORP: U.S. Trustee Appoints 7-Member Non-Union Retiree Panel
DANA CORP: Equity Committee Retains Fried Frank as Counsel
DANA CORPORATION: Selects Skadden Arps as Special Counsel

DATALOGIC INT'L: Receives $550,000 Deposits in Bank Account
DEAN SHIDELER: Case Summary & 13 Largest Unsecured Creditors
DELPHI CORP: Judge Drain Rules on NuTech's Lift-Stay Request
DELTA AIR: Seeks Court Approval for 2001-1 EETC Stipulation
DELTA AIR: Wants to Walk Away from Aero Newark Sublease Agreement

EMMIS COMMS: Sells WKCF-TV to Hearst-Argyle for $217.5 Million
ENTERGY NEW: Court Approves United National & NORCO Settlement
FAIRFAX FINANCIAL: Restates Annual Financials from 2001 to 2005
FAMILYMEDS GROUP: July 1 Stockholders' Deficit Narrows to $4 Mil.
FLAG RESOURCES: Appeals Sanctions Imposed by TSX

FLAMINGO TERRACE: Case Summary & 13 Largest Unsecured Creditors
GARY KINDER: Case Summary & 20 Largest Unsecured Creditors
GENERAL MOTORS: Retail Sales Up 8% in August 2006
GENESIS BIOVENTURES: Relocates to California from Canada
GILBERT ELES: Voluntary Chapter 11 Case Summary

IELEMENT CORP: 2003 Recapitalization Cues Financials Restatement
INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer
INEX PHARMA: Gets $1 Mil. Licensing Payment from Hana Biosciences
INEX PHARMA: Protiva Wants Involvement in Tekmira Spinout Deals
JOCELYN WHITE: Case Summary & 40 Largest Unsecured Creditors

KAISER ALUMINUM: Court Approves Royal Settlement Agreement
KAISER ALUMINUM: Reports Class Settlement Fund in Second Quarter
KL INDUSTRIES: Wants Exclusive-Filing Period Stretched to Oct. 6
KL INDUSTRIES: Has Until November 28 to Decide on Two Leases
KRISPY KREME: Settles Suit with Sweet Traditions

LE GOURMET: U.S. Trustee Appoints Five-Member Creditors Committee
LE GOURMET: Creditors Committee Taps Lowenstein Sandler as Counsel
LE GOURMET: Creditors Committee Taps Traxi as Financial Advisors
LEGACY COMMS: June 30 Balance Sheet Upside-Down by $3.5 Million
LEVITZ HOME: Expands Merchandising Team to Revitalize Brand

LEVITZ HOME: Landlords Supplement Objection to Lease Assignment
MED DIVERSIFIED: 2nd Cir. Subordinates Ex-Employee's Stock Claim
MEDAREX INC: Gets Default Notice Due to Late Form 10-Q Filing
METALDYNE CORP: Consents to $2 Billion Asahi Tec Acquisition
METALDYNE CORP: Asahi Purchase Cues Moody's to Review Ratings

METALDYNE CORP: S&P Holds B Corporate Credit Rating on Watch
METSO PAPER: Completes Purchase of Paper Machine Maker in China
MHARAS CORP: Case Summary & Largest Unsecured Creditor
MILLENIUM ASSISTED: Amended Disclosure Statement Gets Interim Okay
MILLENIUM BIOLOGIX: Provides Details on Proposed Financing

MIRANT CORP: Americas Energy Unit Resolving Bonneville Dispute
NBC/AUSTIN: U.S. Trustee Wants Cases Dismissed or Converted
NBC/AUSTIN WINDRIDGE: Court Okays Capstone as Management Company
NBO SYSTEMS: Balance Sheet Upside-Down by $11.68MM at June 30
NMC PROPERTIES: Case Summary & Two Largest Unsecured Creditors

NORTEL NETWORKS: Selling UMTS Business to Alcatel for $320 Million
ONEIDA LTD: Court Approves Northpoint Industrial Lease Agreement
ORIS AUTOMOTIVE: Court Okays Heninger as Panel's Special Counsel
OWENS CORNING: Court Grants Bondholders Protective Order Plea
OWENS CORNING: Court Approves 7-Eleven's $1.5-Mil. Settlement

PARMALAT USA: Court Approves Pact Resolving Two New Jersey Claims
PARMALAT USA: Farmland, et al. OKs Arthur George's Suit to Proceed
PETER FALTINGS: Case Summary & 14 Largest Unsecured Creditors
PHOTOCIRCUITS CORP: Files Third Amended Disclosure Statement
PLAYLOGIC ENT: Balance Sheet Upside-Down by $2.66 Mil. at June 30

RAMESH PATEL: Case Summary & 15 Largest Unsecured Creditors
RECORP GROUP: Case Summary & Six Largest Unsecured Creditors
REFCO INC: Committee Wants Houlihan Lokey's Fees Increased
REFCO INC: Panel Inks Stipulation with E&Y on Document Production
REMEDIATION FINANCIAL: Must File Disclosure Statement by Sept. 14

ROGER CARTER: Case Summary & 20 Largest Unsecured Creditors
SAINT VINCENTS: Court Approves Amended Labor Pacts with Unions
SAINT VINCENTS: Court Approves DMC Contract Rejection
SILICON GRAPHICS: Files Supplements to First Amended Plan
SILICON GRAPHICS: Storage Technology Objects to Plan Confirmation

SMARTVIDEO TECH: Posts $6.2 Million Net Loss in Second Quarter
SOLVIT GROUP: Case Summary & 12 Largest Unsecured Creditors
SPEEDEMISSIONS INC: Has $538K Working Capital Deficit at June 30
SPORTS ENTERTAINMENT: Case Summary & 19 Largest Unsec. Creditors
TEEKAY SHIPPING: S&P Puts BB+ Corp. Credit Rating on Neg. Watch

TERAFORCE TECH: Lawyers Can't Bill for Defending Final Fee App.
TITAN FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
ULTRACHIP SYSTEMS: June 30 Balance Sheet Upside-Down by $8.5 Mil.
VITAL LIVING: Earns $401,000 in Quarter Ended June 30
WELD WHEEL: Asset Sale Hearing Set for September 25

WHERIFY WIRELESS: Expands Brazilian Distribution with Delphi
WINN-DIXIE: Court Extends Exclusive Solicitation Period to Oct. 31
WINN-DIXIE: Wants to Assume 62 Agreements With IBM Entities
YOUTHSTREAM MEDIA: Appoints John Scheel as President and CEO
ZALE CORP: Incurs $26.4 Million Net Loss for Quarter ended July 31

* Large Companies with Insolvent Balance Sheets

                             *********

655 CORP: Case Summary & 19 Largest Unsecured Creditors
-------------------------------------------------------
Debtor: 655 Corporation
        c/o Vincent J. DiMento
        7 Faneuil Hall Marketplace
        Boston, MA 02109

Bankruptcy Case No.: 06-13020

Type of Business: The Debtor's affiliate, The Geneva LLC, filed           
                  for chapter 11 protection on June 15, 2006
                  (Bankr. D. Mass. Case No. 06-11854).  SOS Realty
                  LLC, another affiliate of the Debtor, also filed
                  for chapter 11 protection on May 11, 2006
                  (Bankr. D. Mass. Case No. 06-11381).

Chapter 11 Petition Date: September 1, 2006

Court: District of Massachusetts (Boston)

Judge: Joan N. Feeney

Debtor's Counsel: Kathleen Rahbany, Esq.
                  Craig and Macauley, P.C.
                  Federal Reserve Plaza
                  600 Atlantic Avenue
                  Boston, MA 02210
                  Tel: (617) 367-9500

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 19 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
National Lumber                    Trade Debt             $75,000
Rocky Carlino
71 Maple Street
P.O. Box 9032
Mansfield, MA 02048

Tudor Plastering                   Trade Debt             $60,000
Fintan Murtagh
50 Bellevue Road
Quincy, MA 02171

Tristate Stone, Inc.               Trade Debt             $48,500
120 Southbridge Road
P.O. Box 762
North Oxford, MA 01537

Learnar Industries                 Trade Debt             $42,185
171 Locke Drive
Marlborough, MA 01752

R & R Sales, Inc.                  Trade Debt             $27,500
174 Hampton Street
Boston, MA 02119

Richie's Insulation, Inc.          Trade Debt             $18,400

Allstate Painting Co., Inc.        Trade Debt             $15,958

Lynco Fire Protection Inc.         Trade Debt             $15,800

C & C Tilin                        Trade Debt             $14,600

Curragh Construction               Trade Debt             $11,400

MA Waste Systems, LLC              Trade Debt              $3,922

Door Systems, Inc.                 Trade Debt              $3,446

Buonasaro Construction             Trade Debt              $2,100

Sani-kan Portable Sanitation       Trade Debt              $1,963

Colony Hardware Supply             Trade Debt              $1,847

Boston Police                      Services Provided         $313
Detail Billing Unit

Extreme Plumbing                   Trade Debt                $100

Boston Water & Sewer Commission    Services Provided          $75

Marr Scaffolding                   Trade Debt                 $75


2000 AD: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------
Debtor: 2000 AD, Inc.
        819 South El Paso
        El Paso, TX 79901

Bankruptcy Case No.: 06-30929

Chapter 11 Petition Date: August 31, 2006

Court: Western District of Texas (El Paso)

Judge: Larry E. Kelly

Debtor's Counsel: Corey W. Haugland, Esq.
                  James & Haugland, P.C.
                  P.O. Box 1770
                  El Paso, TX 79949-1770
                  Tel: (915) 532-3911

Total Assets:   $615,108

Total Debts:  $1,171,171

Debtor's 19 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
CBB Group, Inc.                    Other                 $265,542
440 Seaton Street
Los Angeles, CA 90013

Volume Distributors                Other                 $156,214
4199 Bandini Boulevard
Vernon, CA 90023

Kole Imports                       Other                 $112,190
24600 South Main Street
Carson, CA 90745

Concord Enterprises, Inc.          Other                  $90,761
2957 East 46th Street
Vernon, CA 90058

New Crown Wholesale                Other                  $75,838
2455 East Vernon Avenue
Vernon, CA 90058

Korotkin Property Management       Other                  $43,887

STK International                  Other                  $38,270

Advanta Bank Corp.                 Credit Card            $34,845

Wells Fargo Bank, N.A.             Line of Credit         $32,000

Wells Fargo Business Mastercard    Credit Card            $25,750

Sun Vista International, Inc.      Other                  $14,598

El Diario                          Other                   $1,028

Recal/Mercado Fox Plaza, Ltd.      Contract/Lease              $0

Korotkin Property Management       Contract/Lease              $0

IRS - Special Procedures Staff     Notice Only                 $0

GSJ Fam, L.P.                      Contract/Lease              $0

EPTEX Real Estate                  Contract/Lease              $0

D.A.J.A.C., L.P.                   Contract/Lease              $0

Best Asset Management              Contract/Lease              $0


ADELPHIA COMMS: Court Approves $15.86MM Settlement with iN DEMAND
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved a settlement agreement between Adelphia Communications
Corp. and its debtor-affiliates and iN DEMAND

iN DEMAND filed multiple proofs of claim against the Debtors in
connection with prepetition amounts due to iN DEMAND.  Each of
the Claims was filed for $16,806,524, with the exception of Claim
No. 17716, which was filed for $17,886,995.

The Debtors disputed certain fees included in the Claims.

Pursuant to a settlement between the ACOM Debtors and Viacom,
Inc., and certain of its subsidiaries and affiliates, including
Paramount Pictures Corporation:

    -- the ACOM Debtors assert that they have paid $836,611 to
       Viacom in satisfaction of a portion of the Disputed Claim
       Amount, and that the amount is no longer owed by the ACOM
       Debtors to iN DEMAND or to Paramount Pictures Corporation;
       and

    -- iN DEMAND asserts that it no longer owed $836,611 to
       Paramount.

Pursuant to the Settlement Agreement, the ACOM Debtors and iN
DEMAND mutually agreed that:

    a. Claim No. 17716 will be allowed as an unsecured claim for
       $15,865,161 against the ACOM Debtors;

    b. the rest of the claims will be disallowed;

    c. iN DEMAND is authorized to file one master proof of claim
       -- the Additional Claim -- against the ACOM Debtors in the
       event Paramount seeks and obtains recovery of $836,611 from
       iN DEMAND; and

    d. they will mutually release each other from any and all
       claims provided that the release will not apply to the
       Additional Claim.

The ACOM Debtors will provide notice of the Settlement Agreement
to both Viacom and Paramount.

                   About Adelphia Communications

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is the fifth-largest
cable television company in the country.  Adelphia serves
customers in 30 states and Puerto Rico, and offers analog and
digital video services, high-speed Internet access and other
advanced services over its broadband networks.  The Company and
its more than 200 affiliates filed for Chapter 11 protection in
the Southern District of New York on June 25, 2002.  Those cases
are jointly administered under case number 02-41729.  Willkie Farr
& Gallagher represents the ACOM Debtors.  PricewaterhouseCoopers
serves as the Debtors' financial advisor.  Kasowitz, Benson,
Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP
represent the Official Committee of Unsecured Creditors.

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through
06-10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 147; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ADS LLC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: ADS LLC
        2510 Commercial Park Drive
        Mobile, AL 36606

Bankruptcy Case No.: 06-11573

Type of Business: The Debtor provides concrete works and services.

Chapter 11 Petition Date: September 1, 2006

Court: Southern District of Alabama (Mobile)

Judge: Margaret A. Mahoney

Debtor's Counsel: Stephen L. Klimjack, Esq.
                  Stephen L. Klimjack, LLC
                  One South Royal Street, 2nd Floor
                  Mobile, AL 36602-3247
                  Tel: (251) 694-0600
                  Fax: (251) 694-0611

Estimated Assets: Less than $5,000

Estimated Debts:  $1 Million to $10 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Merrill Lynch Business Financial   Account               $530,872
Martin Aguilera
222 North LaSalle Street
17th Floor
Chicago, IL 60601

Attorney Chambless Math Carr P.C.  Account               $160,672
c/o American Home Assurance Co.
P.O. Box 230759
Montgomery, AL 36123-0759

Delta Industries                   Account               $110,077
10121 Southpark Drive
Gulfport, MS 39503

Reynolds Ready Mix dba             Account                $42,393
Atmore Ready
P.O. Box 200
Atmore, AL 36504

Mississippi Tax Comm.              Taxes                  $35,204
P.O. Box 960
Jackson, MS 39205-0960

Credit Collection Services         Account                $31,081

RMS c/o Companion Property and     Account                $31,050
Casualty

RMS c/o St. Paul's Travelers       Account                $10,328

State of Alabama                   Taxes                  $26,298

Bayside Lumber & Supply Inc.       Account                $23,614

Putzmeister, Inc.                  Account                $13,413

Windham Professionals              Account                 $8,677

Bush & Kennedy                     Account                 $8,255

ICM                                Account                 $6,965

Nathan & Nathan, P.C.              Account                 $6,423

Gregory McAtee                     Account                 $6,093

John R. Frawley                    Account                 $5,691

Blue Rents                         Account                 $5,616

Hudson & Keyse, LLC                Account                 $5,181

McKay, Simpson, Lawler,            Account                 $4,656
Franklin, & Foreman, PLLC


ALLIED HOLDINGS: Wants December 23 as Lease Rejection Deadline
--------------------------------------------------------------
Pursuant to Section 365(d)(4) of the Bankruptcy Code, Allied
Holdings, Inc., and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Northern District of Georgia to extend their
deadline to assume or reject their non-residential real property
leases through and including Dec. 23, 2006.

Thomas R. Walker, Esq., at Troutman Sanders LLP, in Atlanta,
Georgia, relates that the Debtors continue to be lessees to 51
non-residential real property leases.

Mr. Walker notes that cause exists for the Court to grant the
extension because:

    * given the large number of Leases, the Debtors need
      additional time to determine whether the Leases should be
      assumed or rejected;

    * the Debtors have paid and will continue to pay all
      postpetition lease obligations under the Leases;

    * no harm to the landlords and to the Leases will result from
      an extension of time because all lease obligations will
      continue to be paid;

    * the Debtors have been diligent in their efforts to reject
      and assume nonresidential real property leases which, in the
      Debtors' business judgment, needed to be rejected or
      Assumed; and

    * none of the 51 Leases should be rejected or assumed at this
      point.

A list of the 51 Leases is available for free at:

              http://researcharchives.com/t/s?1105

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.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor.  Anthony J. Smits,
Esq., at Bingham McCutchen LLP, provides the Official Committee of
Unsecured Creditors with legal advice and Russell A. Belinsky at
Chanin Capital Partners, LLC, provides financial advisory services
to the Committee.  When the Debtors filed for protection from
their creditors, they estimated more than $100 million in assets
and debts.  (Allied Holdings Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)   


ALLIED HOLDINGS: Intends to Sign New Brokerage Pact with USI
------------------------------------------------------------
Allied Holdings, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Northern District of
Georgia to reject their present Claims Administration Agreement
with USI of Georgia, Inc., and to enter into a brokerage services
agreement with the company.

In August 2005, the Court authorized the Debtors to maintain and
continue their insurance programs.  

Since 2002, USI has provided claims administration and brokerage
services to the Debtors in connection with the Debtors' insurance
coverage.  Pursuant to a claims administration and brokerage
services agreement dated May 1, 2002, USI agreed to perform for
Allied Holdings, Inc., and its subsidiaries brokerage services and
claims administration services related to certain insurance
programs.

Allied, in turn, pays administrative fees and costs to USI.

The initial term of the Claims Administration Agreement was
through April 30, 2007, subject to automatic renewal for
successive two-year periods.  On September 30, 2004, the Debtors
and USI agreed to an extension of the Claims Administration
Agreement through Oct. 31, 2009, subject to termination rights.

Harris B. Winsberg, Esq., at Troutman Sanders LLP, in Atlanta,
Georgia, relates that the Debtors now want to use a different
company for their claims administration needs.  However, the
Debtors wish to continue using USI's brokerage services, and have
negotiated a new agreement with USI for that purpose.

The proposed Brokerage Services Agreement provides that:

    -- USI will be the Debtors' exclusive record broker for:

       (1) auto, property and general liability insurance coverage
           for all of the Debtors' operations in the U.S.; and

       (2) excess liability, directors and officers liability,
           employment practices liability, fiduciary, crime,
           kidnap and ransom, chaplain's professional liability,
           workers' compensation, excess workers' compensation,
           and all other coverages for all Allied operations;

    -- the Debtors will pay a monthly fee of $48,333 for the
       services from the date of the Court's approval of the
       Brokerage Services Agreement through October 31, 2009.

The new Brokerage Services Agreement also provides for additional
compensation to USI with regard to other coverages and products,
as well as for other services, through commissions and other
compensation as is customary in the insurance brokerage industry.

Mr. Winsberg tells the Court that USI has proven to be a reliable
and capable broker for the Debtors over the past four years.  The
Brokerage Services Agreement provides for the continuation of
brokerage services by USI through the same terms originally
contemplated by the Claims Administration Agreement with a
comparable pricing structure.

USI has agreed to the arrangement, and has agreed to waive any
pre- or postpetition claims it may have against the Debtors under
the Claims Administration Agreement except claims for payment for
services rendered under the Claims Administration Agreement.

Mr. Winsberg says the Claims Administration Agreement is a burden
to the Debtors' bankruptcy estates and should be rejected because
the Debtors' claims administration needs will be better served by
a different company.

No downside to rejecting the Claims Administration Agreement
exists, Mr. Winsberg adds.

A full-text copy of the Brokerage Services Agreement is available
for free at http://researcharchives.com/t/s?1106
    
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.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor.  Anthony J. Smits,
Esq., at Bingham McCutchen LLP, provides the Official Committee of
Unsecured Creditors with legal advice and Russell A. Belinsky at
Chanin Capital Partners, LLC, provides financial advisory services
to the Committee.  When the Debtors filed for protection from
their creditors, they estimated more than $100 million in assets
and debts.  (Allied Holdings Bankruptcy News, Issue No. 29;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


AMERICAN MEDIA: Names Jack Craven as Chief Financial Officer
------------------------------------------------------------
American Media, Inc., has named Jack Craven as executive vice
president and chief financial officer.

The Company disclosed that Mr. Craven brings more than 30 years of
financial, media, and news industry experience.  Mr. Craven
succeeds Carlos Abaunza, who has agreed to serve as a consultant
to the company.

As the Company's executive vice president and chief financial
officer, Mr. Craven will be responsible for the company's
finances, accounting, financial reporting, information technology
and planning functions.  He will oversee the completion of the
Company's restatement of its financial statements.  Mr. Craven
also will play a significant role in the Company's business
development activities, and be involved with investor relations.

The Company also disclosed that Mr. Craven is a senior publishing
executive with an excellent track record of growing publishing
operations.  Prior to forming his own CPA practice, he was
executive vice president and chief financial officer of Time
Inc.'s Retail Marketing and Sales organization.  He also served as
deputy director of Strategic Planning at Time Inc.  Mr. Craven's
experience also includes directing the world-wide operations of
Jobson Publishing, where he served as senior vice president
operations and chief financial officer.  Mr. Craven was the senior
vice president and chief financial officer for Lear's and McCall's
publishing companies.  He is the former chairman of the New York
State Society of CPAs Publishing & Printing Committee, and a
member of the American Institute of Certified Public Accountants.
Mr. Craven has been licensed as a CPA since 1974.

"The company's hiring of Jack Craven represents a significant
addition to our company's accounting and finance capabilities,"
David Pecker, chairman and chief executive officer, said.  "As
Jack has been a consultant to AMI on the restatement process, he
comes in with the ability to hit the ground running."

"American Media remains focused on the completion of the
restatement of its financial statements," Mr. Pecker, said.
"Mr. Craven's experience and expertise will greatly aid in the
completion of this process."

The Company further disclosed that Willkie Farr & Gallagher LLP,
advises its Audit Committee on the restatement process.  
PricewaterhouseCoopers has aided Willkie Farr in their review.

Headquartered in Boca Raton, Florida, American Media Operations
Inc. is the United States' largest publisher of celebrity, health
and fitness, and Spanish language magazines.  These include Star,
Shape, Men's Fitness, Fit Pregnancy, Natural Health, and The
National Enquirer.  AMI also owns Distribution Services, Inc.

                         *     *     *

As reported in the Troubled Company Reporter on Jan. 19, 2006,
Standard & Poor's Ratings Services lowered the corporate credit
rating on American Media Operations Inc. to 'B-' from 'B', and the
subordinated debt rating to 'CCC' from 'CCC+'.  S&P affirmed the
'B' rating on the company's senior secured bank loan at that time.

As reported in the Troubled Company Reporter on Sept. 4, 2006
Moody's Investors Service downgraded all ratings of American Media
Operations, Inc.:

   -- $60 million senior secured revolving credit facility, due
      2012 -- to B2 from B1

   -- $450 million senior secured term loan, due 2013 -- to B2
      from B1

   -- $150 million 8.875% senior subordinated notes, due 2011 -
      to Caa3 from Caa1

   -- $400 million 10.25% senior subordinated notes, due 2009 --
      to Caa3 from Caa1

   -- Corporate Family rating -- to Caa1 from B2

The rating outlook is negative.


ANCHOR GLASS: Argues 33 Retiree Claims are Invalid
--------------------------------------------------
Certain retirees and beneficiaries filed 33 claims arising from
Anchor Glass Container Corporation's life insurance policy,  
medical insurance premium, pension payments and salaried  
employees' savings plan.

Reorganized Anchor Glass asserts that the Retiree Claims are  
invalid for one or more of these reasons:

   (a) The 2nd Amended Plan of Reorganization did not affect  
       the life insurance policy, the medical premium payments
       and the salaried employees' savings plan;

   (b) The claimants receive pension payments from Pension
       Benefit Guaranty Corporation; or

   (c) The retirement benefits agreements with some claimants
       were rejected or modified by the company.

Most of the claimants filed no claim amounts.  Thus, the claims
were deemed invalid, Robert A. Soriano, Esq., at Shutts & Bowen
LLP, in Tampa, Florida, tells the U.S. Bankruptcy Court for the
Middle District of Florida.

Mr. Soriano adds that several claimants filed multiple claims,
asserting different statuses.

Accordingly, Reorganized Anchor Glass asks the Court to disallow
30 Retiree Claims.

Among the largest of the claims are:

       Claimant                Claim No.   Claim Amount
       --------                ---------   ------------
       Darell Murphy, Sr.          543.1       $125,000
       Faye Kennedy                666           50,117
       Viola Smith                1075           25,917
       Karl Smith                  164            2,250
       Karl Smith                  164.1         60,000
       Valerio Spogli             1056              593
       Valerio Spogli             1056.1            593

Julia DiMuro filed Claim Nos. 670 for $420,223, asserting an
undefined status, and Claim No. 670.1 for $420,223, asserting a
priority status.  Ms. DiMuro received pension payment under the
Diamond Bathurst Preferred Compensation Plan.  Anchor Glass has
rejected the Diamond Bathurst Plan.

Beverly Meierbachtol filed Claim No. 798, asserting an
unliquidated priority claim relating to loss of post-retirement
health benefits under Anthem Blue Cross.  Anthem Blue Cross is
provided by third-party insurers, hence, the Debtors assert that
Ms. Meierbachtol has no valid claim.

Accordingly, the Reorganized Debtor further asks the Court to
disallow Claim Nos. 670, 670.1 and 798.

Headquartered in Tampa, Florida, Anchor Glass Container
Corporation is the third-largest manufacturer of glass containers
in the United States.  Anchor manufactures a diverse line of flint
(clear), amber, green and other colored glass containers for the
beer, beverage, food, liquor and flavored alcoholic beverage
markets.  The Company filed for chapter 11 protection on Aug. 8,
2005 (Bankr. M.D. Fla. Case No. 05-15606).  Robert A. Soriano,
Esq., at Carlton Fields PA, represents Anchor Glass in its
restructuring efforts.  Edward J. Peterson, III, Esq., at
Bracewell & Guiliani, represents the Official Committee of
Unsecured Creditors.  When Anchor Glass filed for protection from
its creditors, it listed $661.5 million in assets and $666.6
million in debts.  The Court confirmed Anchor Glass' second
Amended Plan of Reorganization on April 18, 2006.  Anchor Glass
emerged from Chapter 11 protection on May 3, 2006. (Anchor Glass
Bankruptcy News, Issue No. 28; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ASARCO LLC: Proposes Uniform Procedures for Settling Tax Claims
---------------------------------------------------------------
ASARCO LLC and its debtor-affiliates seek permission from the U.S.
Bankruptcy Court for the Southern District of Texas in Corpus
Christi to pay their Ad Valorem Taxes according to proposed
payment procedures.

The Debtors estimate that they owe approximately $4,200,000 ad
valorem taxes to 40 different taxing authorities, representing
more than 700 distinct properties.  The Debtors intend to pay the
Ad Valoram Taxes to minimize the ongoing expense to their
estates.

By their nature, the Ad Valorem Taxes are secured by certain real
property, Judith W. Ross, Esq., at Baker Botts L.L.P., in Dallas,
Texas, points out.  In addition, the Ad Valorem Taxes are
entitled to priority treatment under Section 507(a)(8)(B) of the
Bankruptcy Code.

As each day passes, the Ad Valorem Taxes increase due to
postpetition interest.  In light of the current copper market and
the Debtors' current cash position, the Debtors believe that it
is in their best interest to pay the Ad Valorem Taxes now and
stop the accrual of postpetition interest.

Furthermore, Ms. Ross asserts, paying the Ad Valorem Taxes now
will avoid improper claims for attorneys' fees.  Payment of the
Ad Valorem Taxes will also help local school districts and
counties with their funding and budget requirements.

To reduce the burden of seeking Court approval for every payment
the Debtors may make for their Ad Valorem Taxes, they propose to
establish uniform procedures for settling the tax claims:

   (a) If the applicable taxing authority will waive all
       attorneys' fees, penalties, and interest, the Debtors will
       pay the Ad Valorem Taxes without further notice.

   (b) If the applicable taxing authority will not waive all
       attorneys' fees, penalties, and interest, the Debtors will
       pay both the Ad Valorem Taxes and the accrued interest and
       attorneys' fees without further Court order, provided that
       the Debtors will notify:

          * counsel for the Official Committee of Unsecured
            Creditors of ASARCO LLC;

          * counsel for the Official Committee of Unsecured
            Creditors of the Asbestos Subsidiary Debtors;

          * counsel for Robert C. Pate, the future claimants
            representative;

          * counsel to The CIT Group/Business Credit, Inc.; and

          * the United States Trustee.

   (c) The Notice for the Proposed Tax Payment will:

          * identify the Taxes being paid;

          * identify the amount of interest, penalties, and
            attorneys' fees being paid;

          * note the significant terms of any settlement with the
            relevant taxing authority; and

          * note any evidence that the relevant taxing authority
            consents to waive any portion of owed interest or
            attorneys' fees.

   (d) If no written objections are filed with the Court by any
       of the Notice Parties, the Debtors will immediately
       consummate the payment without further Court order.

   (e) If a written objection filed with the Court by a Notice
       Party cannot be resolved, the relevant payment will only
       be made upon further Court order or resolution of the
       objection by the parties in question.

                         About ASARCO LLC

Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,  
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


ASARCO LLC: Wants to Assume CBRY Stockholders Agreement
-------------------------------------------------------
ASARCO LLC seeks authority from the U.S. Bankruptcy Court for the
Southern District of Texas in Corpus Christi to;

   (a) assume the Stockholders' Agreement and the related
       contracts for the sale of Rail Partners II, LLC' shares in
       Copper Basin Railway, Inc.;

   (b) pay $11,300,000 to cure all defaults; and

   (c) purchase Rail Partners' 55% equity interest in Copper Basin
       Railway, Inc.

Copper Basin Railway, Inc., is a Class III short-line freight
railroad located in South Central Arizona.  Its primary business
is transporting minerals to and from ASARCO LLC's Ray Mine and
Hayden, Arizona smelter.

ASARCO owns 45% of the outstanding capital stock of CBRY.  Rail
Partners II, LLC, owns the remaining 55% of the CBRY stock.  Rail
Partners is currently controlled by K. Earl Durden.

Rail Partners and ASARCO's relationship was established in 1986,
as memorialized in four agreements:

   1. a Stockholders' Agreement,
   2. an ore car Lease Agreement,
   3. a Rail Transportation Agreement, and
   4. a Compensation Agreement for the management of CBRY.

The Stockholders' Agreement provides a "put" right in favor of
Rail Partners, pursuant to which Rail Partners may sell its
capital stock to ASARCO for the fair market value of the shares.

The Stockholders' Agreement also provides "call" rights in favor
of ASARCO, pursuant to which ASARCO may purchase either:

   (a) the 45% of Rail Partners' capital stock formerly held by
       Green Bay Packaging, Inc.;

   (b) the 10% of Rail Partners' capital stock formerly owned by
       Mr. Durden; or

   (c) both capital stocks either at the same time or different
       times.

In February 2004, Mr. Durden notified ASARCO of his intent to
sell his 2,200 shares of CBRY stock to ASARCO.  Mr. Durden has
made clear that he no longer wishes to be co-owner of the CBRY
with ASARCO.  Rail Partners and ASARCO, however, were unable to
agree on the fair market value of the stock.

In January 2005, Ernst & Young appraised Rail Partners' shares at
$11,300,000.  ASARCO raised various objections to E&Y's
valuation.

In March 2005, Rail Partners sued ASARCO in the Arizona state
court for breach of the "put" provision and sought specific
enforcement or in the alternative, damages totaling $11,300,000.  
The litigation was automatically stayed upon ASARCO's bankruptcy
filing.

In July 2006, ASARCO sought and obtained the Court's permission
to employ Mercer Management Consulting, Inc., as special purpose
financial advisors, to provide an independent valuation of CBRY.

James R. Prince, Esq., at Baker Botts L.L.P., in Dallas, Texas,
relates that on Aug. 25, 2006, Mr. Durden notified ASARCO that
he is in the process of selling Rail Partners to an affiliate of
Washington Corporation, a company that is also aggressively
seeking to buy ASARCO or its assets.  Mr. Durden says Rail
Partners' sale to Washington will likely close soon.

Mr. Durden also informed ASARCO that he has received letters of
intent from Patriot Rail and Genesee & Wyoming for the purchase
of CBRY.

Mr. Prince asserts that the railway is crucial to ASARCO's
business.  Any disruption in the railway will cause a disruption
in ASARCO's copper production and in turn, will damage its cash
flow and critical relationships with its customers.

If ASARCO does not assume and purchase the shares, control of the
railroad is at imminent risk of being transferred to a third
party, Mr. Prince notes.  Given the importance of CBRY to ASARCO's
business operations and ability to generate revenue, Mr. Prince
contends, the company cannot afford any disruption whatsoever in
rail service or risk another round of freight rate increases that
may result if control of the railway is transferred to a third
party.

                         About ASARCO LLC

Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,  
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


ATARI INC: Receives Notice of Delisting From Nasdaq Global Market
-----------------------------------------------------------------
Atari, Inc., has received a Nasdaq Staff Determination Letter
stating that it failed to regain compliance with the Rule during
the 180 day cure period and its securities are subject to
delisting from the Nasdaq Global Market.

The Company previously received a notice from The Nasdaq Stock
Market advising that it was not in compliance with Nasdaq
Marketplace Rule 4450(a)(5), which requires the Company to
maintain a $1 minimum bid price for its Common Stock.  Nasdaq gave
the Company 180 calendar days, or until Aug. 30, 2006, to regain
compliance with the Rule.

The Company intends to request an appeal hearing before the Nasdaq
Listing Qualifications Panel and present its plan of compliance.  
The request for an appeal will stay the Staff's Determination and
its securities will remain listed on the Nasdaq Global Market
until the Panel issues its decision following the hearing.

New York-based Atari, Inc. (Nasdaq: ATAR)
-- http://www.atari.com/-- develops interactive games for all  
platforms and is one of the largest third-party publishers of
interactive entertainment software in the U.S.  The Company's
1,000+ titles include franchises such as The Matrix(TM) (Enter The
Matrix and The Matrix: Path of Neo), and Test Drive(R); and mass-
market and children's franchises such as Nickelodeon's Blue's
Clues(TM) and Dora the Explorer(TM), and Dragon Ball Z(R).  Atari,
Inc. is a majority-owned subsidiary of France-based Infogrames
Entertainment SA (Euronext - ISIN: FR-0000052573), the largest
interactive games publisher in Europe.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on July 3, 2006,
Deloitte & Touche LLP expressed substantial doubt about Atari,
Inc.'s ability to continue as a going concern after auditing the
Company's financial statements for the for the fiscal years ended
March 31, 2006 and 2005.  The auditing firm pointed to Atari's
significant operating losses and the expiration of its line of
credit facility.


AURIGA LABORATORIES: June 30 Working Capital Deficit Tops $1.7MM
----------------------------------------------------------------
Auriga Laboratories, Inc., incurred a $3,702,787 net loss on
$506,995 of net revenues for the three months ended June 30, 2006,
the Company disclosed on a Form 10-QSB filed with the Securities
and Exchange Commission on Aug. 10, 2006.

At June 30, 2006, the Company's balance sheet showed $1,873,004 in
total assets and $4,589,818 in total liabilities, resulting in a
$2,716,814 stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $1,399,504 in total current assets available to pay
$3,158,087 in total current liabilities coming due within the next
12 months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1102

                        Going Concern Doubt

Jaspers + Hall, PC, in Denver, Colorado, raised substantial doubt
about Auriga Laboratories' ability to continue as a going concern
after auditing the Company's consolidated financial statements for
the year ended Sept. 30, 2005.  The auditor pointed to the
Company's operating losses, has minimal working capital as of
Sept. 30, 2005, and no ongoing source of income.

                     About Auriga Laboratories

Headquartered in Norcross, Georgia, Auriga Laboratories(TM), Inc.
-- http://www.aurigalabs.com/-- is a pharmaceutical company  
capitalizing on high-revenue markets and opportunities in the
pharmaceutical industry through aggressive sales, integrated
marketing and advanced in-house drug development capabilities.


BEISWENGER HOCH: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Beiswenger, Hoch & Associates, Inc.
        510 Shotgun Road, Suite 400
        Sunrise, FL 33326

Bankruptcy Case No.: 06-14264

Type of Business: The Debtor provides engineering services for
                  roadways and bridges.
                  See http://www.bhaengineers.com/

Chapter 11 Petition Date: September 1, 2006

Court: Southern District of Florida (Fort Lauderdale)

Judge: Raymond B. Ray

Debtor's Counsel: Mark S. Roher, Esq.
                  Arthur H. Rice, Esq.
                  Rice Pugatch Robinson & Schiller, P.A.
                  101 Northeast 3rd Avenue, Suite 1800
                  Fort Lauderdale, FL 33301
                  Tel: (954) 462-8000
                  Fax: (954) 462-4300

Total Assets: $4,828,452

Total Debts:  $3,520,151

Debtor's 20 Largest Unsecured Creditors:

   Entity                                Claim Amount
   ------                                ------------
   190 Building Company                      $343,755
   O Box 1368
   Miami Beach, FL 33160
   Tel: (305) 944-5151

   Norona Ltd. LLC                           $312,258
   510 Shotgun Road, Suite 400
   Sunrise, FL 33326
   Tel: (954) 334-2754

   Plantation Leasing                        $210,849
   510 Shotgun Road, Suite 400
   Sunrise, FL 33326
   Tel: (954) 334-2754

   Florida Turnpike                           $76,830
   FL Department of Transportation
   P.O. Box 613069
   Ocoee, FL 34761

   Global Leasing                             $40,046
   510 Shotgun Road, Suite 400
   Sunrise, FL 33326
   Tel: (954) 334-2754

   Blue Cross Blue Shield of Florida          $37,497

   Eric Jospeh                                $34,000

   Mehta & Assoc., Inc.                       $33,019

   National Highway Institute                 $26,600

   C&M Environmental & Geotech Services       $14,089

   MEP Structural                              $7,261

   Guardian Life Insurance Co.                 $4,230

   Marlin Engineering, Inc.                    $3,786

   MAK Hotel Associates, Ltd.                  $3,489

   TotalBank                                   $3,339

   Ardaman & Associates, Inc.                    $734

   City of Sunrise                               $420

   Luis S. Noble, PE                             $400

   Quill Corp.                                   $334

   Konica Minolta Business Solution              $291


CALBATECH INC: Balance Sheet Upside-Down by $5.26M at June 30
-------------------------------------------------------------
CalbaTech, Inc., incurred a $1,164,176 net loss on $242,555 of
revenue during the second quarter ending June 30, 2006, the
Company disclosed on a Form 10QSB report filed with the Securities
and Exchange Commission.  

As of June 30, 2006, the Company's balance sheet showed $553,574
in assets and $5,823,436 in liabilities.  The Company's equity
deficit narrowed to $5,269,862 as of June 30, 2006, from a      
$5,651,861 deficit at Dec. 31, 2005.

James DeOlden, the Company's chief executive officer, said, the
Company's success and ongoing financial viability is contingent
upon its selling of its products and the related generation of
cash flows.  However, should it be necessary, management believes
it would be able to meet its cash flow requirements through
additional debt or equity financing.  He said both the management
of the Company's current growth and the expansion of the Company's
current business involve significant financial risk and require
significant capital investment.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?110e

                        Going Concern Doubt

De Joya Griffith & Company, LLC, expressed substantial doubt about
Calbatech, Inc.'s ability to continue as a going concern after it
audited the Company's financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the Company's
recurring losses from operations, negative working capital, and
negative cash flows from operations.

                          About CalbaTech

CalbaTech, Inc. (OTCBB: CLBE) -- http://www.CalbaTech.com/-- is   
an emerging life sciences company concentrating on providing
products and platforms to the research market for biotech and
pharmaceutical companies and academic institutions.


CLARION TECH: Shareholders' Deficit Tops $97.5 Mil. at July 1
-------------------------------------------------------------
Clarion Technologies, Inc., filed its financial statements for the
second quarter ended July 1, 2006, with the Securities and
Exchange Commission on Aug. 15, 2006.

The Company recorded net loss of $2,268,000 for the second quarter
of 2006 and net loss of $4,643,000 for the first six months of
2006, compared with net loss of $640,000 and $3,489,000 in the
corresponding periods of 2005, respectively.  This decrease is a
result of lower gross profit from the increased cost of sales and
the Company's slightly higher interest expense.

Net sales of $29,197,000 in the second quarter of 2006 were
$9,783,000 or 25.1% lower than net sales of $38,980,000 in the
second quarter of 2005.  Net sales of $65,033,000 for the first
six months of 2006 were $6,221,000 or 8.7% lower than the
comparable period of 2005.

At July 1, 2006, the Company's balance sheet showed $70,041,000 in
total assets, $108,120,000 in total liabilities, $37,664,000 in
redeemable series A preferred stock, and $19,301,000 in redeemable
series B preferred stock, resulting in a $97,594,000 shareholders'
deficit.  The Company had an $85,923,000 deficit at Dec. 31, 2005.

The Company expects total revenue levels for fiscal 2006 to
decrease compared with fiscal 2005.  This is primarily due to the
elimination of electronics content on an existing program that
began in 2005.  The Company has retained the program and continue
to supply the injection-molded product.  However, the electronics
content is now assembled and applied by the customer instead of
the Company.  This change was effective in March 2006 and will
cause total revenues to decline from fiscal 2005 levels.  The
impact of this change in the second quarter of 2006 versus the
second quarter of 2005 is a $3,000,000 reduction in sales.

In the second quarter of 2006, the Company experienced lower sales
from a major customer in the appliance market due to softer demand
for its products.  Sales to this customer in the second quarter of
2006 were $2,345,000 less than the same period in 2005.

Excluding the circumstance involving the electronics content
elimination, the Company expects revenues to increase.

A major customer is in the latter stages of transitioning its
production from Greenville, Mich., to Juarez, Mexico.  The Company
has opened a facility in Juarez to meet the needs of its customer
and it expects to obtain additional business once the transition
period is complete due to a long-term supply agreement with that
customer.

In addition, the Company will begin a new program with a core
automotive customer during fiscal 2006.  This new program is
expected to generate revenues in excess of normal automotive
program expiration.

                              Default

On March 31, 2006, the Company defaulted on certain financial
covenants contained in the Company's Senior Loan Agreement as well
as certain financial covenants contained in the Company's Senior
Subordinated Loan Agreement.  Those defaults and subsequent
defaults are ongoing.  The Company's debt has not been accelerated
but substantially all of it, including accrued interest, is
classified as current due to the covenant violations.

The Company continues to negotiate with its lenders to obtain
default waivers and amendments to both credit facilities.  The
Company believes it will reach a solution acceptable to all
parties.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?1107

                        Going Concern Doubt

As reported in the Troubled Company Reporter on April 27, 2006,
BDO Seidman, LLP, raised substantial doubt about Clarion
Technologies, Inc.'s ability to continue as a going concern after
it audited the company's financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the company's
recurring losses from operations, working capital deficit,
accumulated deficit and violation of certain covenants in its loan
agreements.

                    About Clarion Technologies

Headquartered in Grand Rapids, Michigan, Clarion Technologies,
Inc. -- http://www.clariontechnologies.com/-- creates products   
and parts for the automotive, furniture and consumer goods
industry.  The Company makes plastic injection molding, and offers
post-molding assembly and finishing operations.


COLLINS & AIKMAN: Exchanging Secured Debt for Stock Under Plan
--------------------------------------------------------------
After a review of their current business operations, Collins &
Aikman Corporation and its debtor-affiliates concluded that
continuing to operate as a going concern would maximize creditors'
recovery.  The Debtors believe that their businesses and assets
have significant value that would not be realized in liquidation.

The Debtors' Plan of Reorganization provides for cancellation of
claims under their senior secured credit facility in exchange for:

   (1) new common stock;

   (2) replacement of all undrawn letters of credit under the
       Prepetition Facility;

   (3) retention of adequate protection payments;

   (4) payment of reasonable fees and expenses of attorneys and
       financial advisor of JPMorgan Chase Bank, N.A., as
       administrative agent under the Prepetition Credit
       Agreement, in connection with consummation, administration
       and enforcement of Plan; and

   (5) certain releases and exculpation.

John R. Boken, chief restructuring officer for Collins & Aikman
Corporation, explains that the Debtors, as Reorganized Debtors,
will continue to exist after the Effective Date as separate
corporate entities, with all the powers of a corporation under
applicable law.

The Plan allows the Reorganized Debtors to enter into certain
transactions to effect a corporate restructuring of their
businesses, including mergers, consolidations, dispositions,
liquidations or dissolutions.

The initial board of directors of Reorganized Collins & Aikman
Corporation will comprise the chief executive officer of
Reorganized C&A Corporation and six other members selected by the
Steering Committee of secured lenders.

                          Exit Financing

To obtain funds necessary to make payments required on the
Effective Date and conduct post-reorganization operations, the
Reorganized Debtors expect to enter into a New Bank Facility upon
emergence from their Chapter 11 Cases.  The Debtors are in
discussions with several lenders to arrange this facility and have
already received preliminary exit financing proposals.  The New
Bank Facility will likely be secured by substantially all of the
real and personal property of the Reorganized Debtors.

                        Litigation Trust

On the Effective Date, a Litigation Trust will be established
pursuant to the terms of a Litigation Trust Agreement.  The
Litigation Trust will initially be funded with $3,000,000, which
will be repaid to the Reorganized Debtors from the first proceeds
received by the Litigation Trust.

The Litigation Trust will have the authority to file, settle,
compromise, withdraw or litigate to judgment objections to general
unsecured claims, senior note claims, and senior subordinated note
claims.

                         Treatment of Claims

Under the Plan of Reorganization, the Debtors group claims and
interests into 11 classes:

Class  Designation            Status/Recovery      Voting Rights
-----  -----------            ---------------      -------------
  n/a   Administrative Claims  100% Recovery                   -

  n/a   Priority Tax Claims    100% Recovery                   -

   1    Other Secured Claims   Unimpaired       deemed to accept
                               100% Recovery

   2    Other Priority Claims  Unimpaired       deemed to accept
                               100% Recovery

   3    Prepetition Facility   Impaired         entitled to vote
        Claims

   4    OEM Junior Secured     Impaired         entitled to vote
        DIP Claims

   5    General Unsecured      Impaired         entitled to vote
        Claims

   6    Senior Note Claims     Impaired         entitled to vote

   7    PBGC Claims            Impaired         entitled to vote

   8    Senior Subordinated    Impaired         entitled to vote
        Note Claims

   9    Equity Interests       Impaired         deemed to reject
                               0% Recovery

  10    Subordinated           Impaired         deemed to reject
        Securities Claims      0% Recovery

  11    Intercompany Claims    Impaired         deemed to reject
                               0% Recovery

Kurtzman Carson Consultants, LLC, the Debtors' claims and  
solicitations agent, will:

   -- answer questions regarding the procedures and requirements  
      for voting to accept or reject the Plan and for objecting  
      to the Plan;

   -- provide additional copies of all materials;

   -- oversee the voting tabulation; and

   -- process and tabulate ballots for each Class entitled to  
      vote to accept or reject the Plan.   

Parties-in-interest may contact KCC at:

     Collins & Aikman Solicitation
     c/o Kurtzman Carson Consultants L.L.C.
     12910 Culver Boulevard, Suite I
     Los Angeles, California 90066

As of Aug. 25, 2006, KCC had received about 9,005 proofs of claim
in the Debtors' Chapter 11 cases:

   (a) 1,024 secured claims for $3,091,210,506;  

   (b) 40 administrative claims for $2,195,440;  

   (c) 898 priority claims for $7,495,495,767; and  

   (d) 7,043 unsecured claims for $42,639,506,934.  

The Debtors believe that many of the claims are invalid, untimely,
duplicative or overstated.  The Debtors are in the process of
objecting to those claims.  Through objections, the Court has
disallowed 227 claims for $4,342,718,570.

At the conclusion of the Claims objection, reconciliation and
resolution process, the Debtors estimate that the aggregate amount
of claims for each class will be:

   Class                                    Estimated Amounts
   -----                                    -----------------
   Allowed Administrative Claims                $95,000,000
   Allowed Secured Claims                      $940,000,000
   Allowed Priority Claims                      $12,000,000
   Allowed Senior Note Claims                  $521,000,000
   Allowed Senior Subordinated Note Claims     $414,000,000
   Allowed General Unsecured Claims            $540,000,000

                 Liquidation & Valuation Analyses

The Debtors' management, together with KZC Services, LLC, their
restructuring consultants, and Lazard Freres & Co. LLC, their
financial advisors, prepared a Liquidation Analysis and Valuation
Analysis, which describe the proceeds to be realized under the
Plan as currently proposed, versus the distributions that would be
realized by holders of claims and equity interests if the Debtors
were liquidated in a case under Chapter 7 of the Bankruptcy Code.

The Debtors believe that the Plan will produce a greater recovery
for creditors than would be achieved in a Chapter 7 liquidation
because, among other things:

   -- proceeds available for distribution in a liquidation under
      Chapter 7 would not include the Debtors' going concern
      value;

   -- the administrative and postpetition claims generated by a
      conversion to a Chapter 7 and the administrative costs of
      liquidation and associated delays would likely diminish the
      assets available for distribution to creditors.  

The value of the equity in the Reorganized Debtors on their exit
from bankruptcy as a going concern is projected to be greater than
the recovery realized from a liquidation of the Debtors' assets,
Mr. Boken relates.

                  Attempts to Sell the Business

The Debtors had initiated a process to sell the company "in whole
or in part" as part of its dual-track strategy.  As of August 30,
2006, the Debtors report that they have been unable to reach an
agreement with the interested parties that they believe would be
acceptable to creditors.  However, the Debtors continue to have
discussions and provide due diligence information to certain
parties.

The Plan preserves the Debtors' enterprise value for holders of
allowed claims while leaving open the possibilities of sale of
some or all of their businesses should a suitable opportunity
arise.

A full-text copy of Collins & Aikman's Plan and Disclosure
Statement is available for free at:

               http://researcharchives.com/t/s?10f2

The exhibits and appendices to the Plan and Disclosure Statement
will be filed in pieces and will be posted in the same link as
soon as they become available.

The Debtors say they will file the Plan exhibits no later than 10
days before the hearing on the Disclosure Statement.  The Court
has yet to schedule the Disclosure Statement Hearing.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in cockpit   
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case
No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis LLP,
represents C&A in its restructuring.  Lazard Freres & Co., LLC,
provides the Debtor with investment banking services.  Michael S.
Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents
the Official Committee of Unsecured Creditors Committee.  When the
Debtors filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total debts.
(Collins & Aikman Bankruptcy News, Issue No. 39; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or   
215/945-7000)


COLLINS & AIKMAN: Outlines Business Plan in Disclosure Statement
----------------------------------------------------------------
In the Disclosure Statement accompanying the Plan of
Reorganization, Collins & Aikman Corporation and its debtor-
affiliates note that while they intend to maintain the
relationships currently enjoyed with the Big 3 automakers --
DaimlerChrysler, Ford, and General Motors -- the Debtors intend to
enhance business relations with new domestic customers, including
Toyota, Nissan, Honda and Hyundai.

John R. Boken, chief restructuring officer for the Debtors,
relates that key initiatives include:

   -- repairing relationships with existing customers;

   -- expanding the scope of business opportunities with new
      domestic customers;

   -- addressing 2007 and 2008 revenue declines due to loss of
      quoting activity while in bankruptcy;

   -- attracting certain targeted short lead-time new awards; and

   -- winning back certain programs lost in 2004 and 2005.

Longer term, the Debtors believe they are well positioned to win
new awards for major programs with all customers in 2009 and
beyond.

According to Mr. Boken, the Debtors' strategy to expand the scope
of business opportunities with new domestic customers includes
levering existing relationships with the new domestic customers in
the carpet & acoustics business to develop similar relationships
in the plastics segment.  In addition, the Debtors are reviewing
alternatives to utilize joint ventures and keiretsu and to
establish an engineering sales and marketing presence in Asia to
broaden the scope of business opportunities.

Furthermore, the Debtors have identified opportunities to improve
manufacturing efficiency and right size the cost infrastructure by
incorporating best practices for processes, procedures and
technologies across their operations, Mr. Boken relates.  
Moreover, the Debtors are negotiating with numerous contract and
lease counterparties to reduce costs.

                       Potential Recoveries

The Debtors expect to recover certain amounts from various
entities.

(1) European Operations

The Debtors had asserted claims for $338,733,078 against 19 of
their foreign subsidiaries and affiliates in Europe:

   European Debtor                           Claim Amount
   ---------------                           ------------
   C&A Automotive Company Italia, S.r.l.         $252,567
   C&A Automotive Fabrics Limited                  87,899
   C&A Automotive Floormats Europe B.V.            25,420
   C&A Automotive Holding Gmbh                    233,758
   C&A Automotive Limited                         496,185
   C&A Automotive s.r.o.                        1,654,506
   C&A Automotive Systems AB                    1,018,431
   C&A Automotive Systems S.L.                  5,786,358
   C&A Automotive Systems, GmbH                 3,734,426
   C&A Automotive Trim B.V.                    11,331,556
   C&A Automotive Trim B.V.B.A.                 1,213,731
   C&A Automotive Trim GmbH                     1,872,505
   C&A Automotive Trim Limited                    219,808
   C&A Europe B.V.                              7,579,940
   C&A Europe S.A.                            233,253,012
   C&A Holding AB                                     229
   C&A Holdings B.V.                           67,510,279
   C&A Products, GmbH                           2,356,111
   Dura Convertible Systems GmbH                  106,357

The Debtors estimate a $50 million to $70 million recovery from
the European Debtors, with over 90% of that amount coming from
Collins & Aikman Europe S.A., Collins & Aikman Holdings B.V., and
Collins & Aikman Automotive Trim B.V.  

The Debtors anticipate that an initial distribution will be made
by December 31, 2006, with the final distribution being made by
March 31, 2007.

As previously reported, the European Debtors commenced
administration proceedings pursuant to the English insolvency
law.  IAC Acquisition Corporation Limited -- an entity funded by
WL Ross & Co. LLC and Franklin Mutual Advisors LLC -- purchased
substantially all assets of the European Debtors for over
$100,000,000.  As part of the sale, the Debtors agreed to
transfer and license certain intellectual property to IAC for
$12,500,000.

(2) Avoidance Actions

The Debtors are currently investigating prepetition transfers
that may be avoided under Chapter 5 of the Bankruptcy Code as
fraudulent or otherwise.

With respect to potential actions under Section 547 of the
Bankruptcy Code, in the 90 days before the Petition Date, the
Debtors made 96,000 payments aggregating $618,000,000 to 3,900
different parties, Mr. Boken relates.  About 210 of the 3,900
parties received payments in excess of $500,000 during that
period, amounting to $486,000,000, Mr. Boken says.

Mr. Boken maintains that with respect to payments to insiders
during the one-year period before the Petition Date, the Debtors
made $7,400,000 in payments to 32 entities.  Also during the one-
year period, the Debtors transferred $244,000,000 among various
affiliates, he adds.

The Debtors are continuing to investigate the facts and
circumstances of each of these transfers.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in cockpit   
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case
No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis LLP,
represents C&A in its restructuring.  Lazard Freres & Co., LLC,
provides the Debtor with investment banking services.  Michael S.
Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents
the Official Committee of Unsecured Creditors Committee.  When the
Debtors filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total debts.
(Collins & Aikman Bankruptcy News, Issue No. 39; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or   
215/945-7000)


DANA CORP: U.S. Trustee Appoints 7-Member Non-Union Retiree Panel
-----------------------------------------------------------------
Diana G. Adams, the acting U.S. Trustee for Region 2, appointed
seven retirees to serve in the Official Committee of Non-Union
Retirees in Dana Corporation and its debtor-affiliates' Chapter 11
cases:

         1. Robert Fitzmorris
            1176 Harbor Town Way
            Venice, FL 34292
            Tel. No.: (941) 493-2178

         2. Michael R. Carrigan
            926 Emerald Bay Drive
            Destin, FL 32541
            Tel. No.: (850) 269-2003

         3. Claudia J. Holstein
            428 Rosedale Terrace
            Winchester, MO 63021
            Tel. No.: (636) 394-6236

         4. Edward Balcar
            1827 Glen Ellyn Drive
            Toledo, OH 43614
            Tel No.: (419) 382-7634

         5. Donna R. Doyle
            282 South Hampton Drive
            Bristol, TN 37620
            Tel. No.: (432) 764-4010

         6. Melvin H. Rothlisberger
            5236 Spring Creek Lane
            Sylvania, OH 43560
            Tel. No.: (419) 824-2456

         7. Edward Cole
            1711 Woodland Lake Pass
            Fort Wayne, IN 46825
            Tel. No.: (260) 489-2279

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and  
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006(Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed $7.9 billion in assets and $6.8
billion in liabilities as of Sept. 30, 2005.  (Dana Corporation
Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORP: Equity Committee Retains Fried Frank as Counsel
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gave the Official Committee of Equity Security Holders in Dana
Corporation and its debtor-affiliates' chapter 11 cases permission
to employ Fried, Frank, Harris, Shriver & Jacobson, LLP, as its
counsel, nunc pro tunc to June 30, 2006.

As the Equity Committee's counsel, Fried Frank will:

   (a) provide legal advice with respect to the Equity
       Committee's rights, powers and duties in the Chapter 11
       cases;

   (b) assist the Equity Committee in its analysis and
       negotiation of any plan of reorganization and related
       corporate documents;

   (c) assist and advise the Equity Committee with respect to its
       communications with the general equity body regarding
       significant matters in the Chapter 11 cases;

   (d) review, analyze, and advise the Equity Committee with
       respect to documents filed with the Court and respond on
       behalf of the Equity Committee to all applications,
       motions, answers, orders, reports, and other pleadings in
       connection with the administration of the Debtors' estates
       in the Chapter 11 cases; and

   (e) perform any other legal services requested by the Equity
       Committee in connection with the Chapter 11 Cases and the
       confirmation and implementation of a plan in the
       Chapter 11 cases.

Fried Frank will be paid based on its customary hourly rates:

       Professional                        Hourly Rate
       ------------                        -----------
       Partners                            $650 to $995
       Counsel                             $550 to $850
       Special Counsel                     $595 to $620
       Associates                          $315 to $540
       Legal Assistants                    $170 to $235

These professionals will have primary responsibility of providing
services to the Debtors:

      Professional                        Hourly Rate
      ------------                        -----------
      Brad Eric Scheler, Esq.                 $995
      Gregg Weiner, Esq.                      $750
      Gary Kaplan                             $650
      Brian Pfeiffer                          $525
      Julia Smolyanskiy                       $470
      Joanna Palacios                         $370

Fried Frank will also be reimbursed for all necessary expenses it
will incur in providing services to the Equity Committee.

Brad Eric Scheler, Esq., a member at Fried, Frank, assures the
Court that his firm does not represent any interest adverse to the
Equity Committee or the Debtors.  Fried Frank is also a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and  
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006(Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed $7.9 billion in assets and $6.8
billion in liabilities as of Sept. 30, 2005.  (Dana Corporation
Bankruptcy News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORPORATION: Selects Skadden Arps as Special Counsel
---------------------------------------------------------
Dana Corporation and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York for permission to
employ Skadden Arps as their special counsel, nunc pro tunc to
Mar. 3, 2006.

As of Mar. 3, 2006, the Debtors employed Skadden, Arps, Slate,
Meagher & Flom LLP, as an ordinary course professional.  However,
the Debtors have determined that Skadden Arps' work would now be
more significant than originally anticipated.

As special counsel, Skadden Arps will:

   (a) advise the Debtors' Audit Committee and their independent
       directors in connection with matters relating to the
       independent investigation and the restatement of the
       company's earnings, including responding on behalf of the
       company to information requests and subpoenas issued by
       the Securities and Exchange Commission and other federal
       and state agencies; and

   (b) advise the Debtors with respect to employee benefit and
       executive compensation matters, including with respect to
       compliance with Section 409A of the Internal Revenue Code.

The Debtors will pay Skadden Arps its customary hourly rates:

      Professional                        Hourly Rates
      ------------                        ------------
      Partners and Counsel                $585 to $835
      Special Counsel                     $560 to $640
      Associates                          $295 to $540
      Legal Assistants                     $90 to $230

In addition, the Debtors will reimburse the necessary expenses
Skadden Arps incurs while providing services on their behalf.

D.J. Baker, Esq., a member at Skadden Arps Slate Meagher & Flom
LLP, in New York, assures the Court that his firm does not hold
any interest adverse to the Debtors and their estates, and is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and  
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on Mar.
3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball, Esq.,
and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005.  (Dana Corporation Bankruptcy
News, Issue No. 20; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DATALOGIC INT'L: Receives $550,000 Deposits in Bank Account
-----------------------------------------------------------
DataLogic International, Inc., through it's wholly owned
subsidiary, DataLogic Consulting, Inc., has received deposits
totaling $550,000 into its bank account on terms and conditions
that cannot be fully determined due to its failure to maintain an
effective system of internal controls.

The Company disclosed that some of the funds have been received
from individuals who may be affiliated with the Company.  The
deposits were made into the Company's account on different dates:

                     Date         Amount of Deposit
                     ----         -----------------
                 Aug. 8, 2006          $200,000
                 Aug. 17, 2006         $150,000
                 Aug. 18, 2006         $150,000
                 Aug. 21, 2006          $50,000
                                       --------
                 Total                 $550,000

The Company also disclosed that the funds may represent a debt or
other financial obligation of the Company to repay the funds and
that it is investigating the matter further with the assistance of
its outside counsel.

The Company further disclosed that it does not currently have
sufficient funds to repay the deposits, if such deposits are
determined to constitute a debt, or to make the payments on its
other indebtedness that will become due in the next thirty days.

Irvine, Calif.-based DataLogic International, Inc. (OTCBB: DLGI)
-- http://www.dlgi.com/-- is a technology and professional  
services company providing a wide range of consulting services and
communication solutions like GPS based mobile asset tracking,
secured mobile communications and VoIP.  The Company also provides
Information Technology outsourcing and private label communication
solutions.  DataLogic's customers include U.S. and international
governmental agencies as well as a variety of international
commercial organizations.

                         Going Concern Doubt

As reported in the Troubled Company Reporter on May 17, 2006,
Corbin & Company, LLP, raised substantial doubt about DataLogic
International, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Dec. 31, 2005.  The auditing firm pointed to the
Company's recurring losses and need to establish profitable
operations.


DEAN SHIDELER: Case Summary & 13 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Dean Sanford Shideler
        3539 Rolston Drive
        Fort Wayne, IN 46805

Bankruptcy Case No.: 06-11474

Type of Business: The Debtor filed for chapter 11 protection on
                  August 25, 2006 (Bankr. N.D. Ind. Case No. 06-
                  11407).

Chapter 11 Petition Date: September 1, 2006

Court: Northern District of Indiana (Fort Wayne Division)

Judge: Robert E. Grant

Debtor's Counsel: Douglas E. Johnston, Esq.
                  Tourkow, Crell, Rasenblatt & Johnston
                  203 East Berry Street, Suite 814
                  Fort Wayne, IN 46802
                  Tel: (260) 426-0545
                  Fax: (260) 422-9991

Total Assets: $2,003,530

Total Debts:  $1,572,507

Debtor's 13 Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Cap 1 Bank                       Charge Account           $20,230
P.O. Box 85015
Richmond, VA 23285-5075

Wamu/Prvdn                       Charge Account           $12,553
P.O. Box 9007
Pleasanton, CA 94566

Amex                             Charge Account            $9,248
P.O. Box 297871
Fort Lauderdale, FL 33329-7871

Pro Fed Cu                       Charge Account            $4,950
1710 St. Joe River Drive
Fort Wayne, IN 46805-1446

Cap 1 FSB                        Charge Account            $4,504
P.O. Box 26030
Richmond, VA 23260-6030

AllianceOne                      Collection                $1,271

Marathon O                                                 $1,005

Verizon North                                                $929

Verizon                          Charge Account              $595

Verizon In                                                   $358

Comprehensive Collection         Collection                  $154

3 Rivers FCU                                              Unknown

Allen County Treasurer           Real Estate Taxes        Unknown


DELPHI CORP: Judge Drain Rules on NuTech's Lift-Stay Request
------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York rules that nothing in the automatic
stay prevents NuTech Plastics Engineering, Inc., from proceeding
with its action against General Motors Corp.  However, any claim
by NuTech against debtor Delphi Automotive Systems USA, LLC, will
be liquidated or otherwise determined by the Bankruptcy Court,
Judge Drain says.

NuTech sought to lift the automatic stay to allow its prepetition
breach-of-contract case against DAS LLC, and GM to proceed.  The
case is pending in the Circuit Court for Genesee County, in
Michigan.  NuTech had argued that Delphi and GM breached their
contract by failing to purchase parts as agreed.  Delphi and GM
also failed to remove equipment from NuTech necessary for to
produce the parts.  NuTech had increased its manufacturing
capability to satisfy Delphi and GM's an anticipated production
demands.

Judge Drain allows parties to take depositions of John Mailey by
oral examination or written interrogatories on matters relating to
Claim Nos. 871 and 1279 filed by NuTech.  Judge Drain lifts the
automatic stay to permit the preservation of testimony of Mr.
Mailey.

Mr. Mailey was one of NuTech's former owners and a likely witness.  
Mr. Mailey has medical problems that are so serious that trial had
to be adjourned once already because he had suffered a stroke,
NuTech reported.

According to Jay Schwartz, Esq., the Michigan Supreme Court
requires each trial court judge to report on a quarterly basis all
civil cases that are more than two years old and the reasons why
they remain pending.  In practice, these reporting requirements
cause trial courts to prioritize the trial of those cases that
have been pending the longest.

Mr. Schwartz relates that since the Bankruptcy Court did not lift
the automatic stay during the omnibus hearing in July 2006, the
case will be delayed further.

"I believe that, even with the priority that the Genesee county
Circuit Court will give to NuTech's case, the [Bankruptcy]
Court's docket will prevent NuTech from obtaining a trial date
before January 2007."

Based in Troy, Mich., Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The Company's technology and
products are present in more than 75 million vehicles on the road
worldwide.  The Company filed for chapter 11 protection on Oct. 8,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler
Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in
their restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell
A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins
LLP, represents the Official Committee of Unsecured Creditors.
As of Aug. 31, 2005, the Debtors' balance sheet showed
$17,098,734,530 in total assets and $22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 39; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


DELTA AIR: Seeks Court Approval for 2001-1 EETC Stipulation
-----------------------------------------------------------
In September 2001, Delta Air Lines, Inc., U.S. Bank Trust
National Association, and certain other parties entered into a
pass through financing arrangement -- the 2001-1 Enhanced
Equipment Trust Certificate -- in which Delta financed 36 Boeing
aircraft.

As part of the 2001-1 EETC, Delta entered into 36 separate
Indenture and Security Agreements, one per aircraft, with respect
to which U.S. Bank currently acts as Loan Trustee.  Delta has
issued five series of Equipment Notes -- A-1, A-2, B, C, and D --
under each Indenture, the payment of which is secured by a
mortgage on, and security interest in, among other things, all of
Delta's right, title and interest in and to the corresponding
aircraft.

Each Equipment Note was purchased by one of five corresponding
Delta Air Lines Pass Through Trusts, known as the Delta Air Lines
Pass Through Trusts "2001-1A-1," "2001-1A-2," "2001-1B," "2001-
1C," and "2001-1D", for each of which U.S. Bank currently is
Trustee.  Each Pass Through Trust purchased all of the Equipment
Notes of a specific series using proceeds from the sale of
corresponding classes of enhanced equipment trust certificates --
the "Class A-1," "Class A-2," "Class B," "Class C," and "Class D
Certificates".

The Equipment Notes are registered in the name of U.S. Bank in
its capacity as Subordination Agent under an Intercreditor
Agreement dated September 17, 2001, as amended, originally
entered into by and among:

   (a) State Street Bank and Trust Company of Connecticut,
       National Association, not in its individual capacity, but
       solely as Pass Through Trustee of each of the Delta Air
       Lines Pass Through Trusts 2001-1A-1, 2001-1A-2, 2001-1B,
       2001-1C, and 2001-1D;

   (b) Landesbank Hessen-Thuringen Girozentrale as Class A-1,
       Class A-2, Class B and Class C Liquidity Provider; and

   (c) State Street in its capacity as Subordination Agent.

The Intercreditor Agreement controls the distribution of funds
among the parties.

Under the Indentures, Delta makes payments on the Equipment Notes
semi-annually on each March 18 and September 18.  Those payments
are received and allocated by the Subordination Agent in
accordance with the applicable provisions of the Intercreditor
Agreement, and, to the extent of sufficient funds, are distributed
to the Pass Through Trustees to make semi-annual payments on the
Certificates.

Payments of up to three semi-annual installments of interest
allocable to the holders of Class A-1, A-2, B and C Certificates
are supported by four separate liquidity facilities with the
Landesbank.  If for any reason the amount distributable to the
holders of Certificates of a supported Class is less than the
scheduled interest payment on the related Series of Equipment
Notes, the Subordination Agent is required to draw on the
Liquidity Facilities to the extent necessary to enable the
relevant Pass Through Trustee to distribute the full amount of
that interest.

Delta's filing of a voluntary petition under Chapter 11 of the
Bankruptcy Code constitutes a "Triggering Event" under the
Intercreditor Agreement.  Once a Triggering Event occurs, all
distributions under the Intercreditor Agreement are to be made
pursuant to Section 3.03 of the Agreement, which provides:

    -- for the payment of certain fees, expenses and other
       amounts, including, without limitation, the fees and
       expenses of U.S. Bank, Liquidity Expenses and Liquidity
       Obligations prior to payments to the Pass Through Trustees
       for further distribution on the Certificates; and

    -- that State Street, as subordination agent, is required to
       distribute to the Pass Through Trustees, to the extent o
       sufficient funds, the Adjusted Expected Distribution for
       their respective Class of Certificates in this order of
       priority:

         (i) the Class A-1 and A-2 Trustees, pro rata;
        (ii) the Class B Trustee,
       (iii) the Class C Trustee, and
        (iv) the Class D Trustee.

The next scheduled semi-annual payment due on the Equipment
Notes, totaling $363,783,038 in principal and accrued interest,
is due on September 18, 2006.

The Adjusted Expected Distribution for each Class of Certificates
on September 18, 2006, is:

   Class      Principal         Interest            Total
   -----      ---------         --------            -----
   A-1               --       $4,301,593       $4,301,593
   A-2               --       20,307,167       20,307,167
    B                --        7,983,584        7,983,584
    C      $169,782,000        6,196,194      175,978,194
    D       150,000,000        5,212,500      155,212,500
           ----------------------------------------------
   Totals  $319,782,000      $44,001,038     $363,783,038
           ==============================================

Michael E. Wiles, Esq., at Debevoise & Plimpton LLP, in New York,
relates that the Adjusted Expected Distributions for the Class C
and Class D Certificates represent final distributions, as the
principal amount of the related Equipment Notes matures on
September 18, 2006.

Delta warrants that it currently holds a beneficial interest in
$110,392,256 in principal amount of the Class C Certificates,
about 65.02% of the total outstanding principal amount, and also
owns directly 100% of the principal amount of the outstanding
Class D Certificates.

Delta acknowledges that each of the aircraft included in the
2001-1 EETC is subject to the provisions of Section 1110 of the
Bankruptcy Code.  Delta has previously agreed, pursuant to
Section 1110(a)(2) and within the time period specified in
Section 1110, to:

    -- perform all obligations of Delta under the Indentures and
       those other agreements as may be determined to constitute
       the applicable security agreements under Section 1110; and

    -- cure defaults, if any, under the 1110 Documents, except to
       the extent that those defaults do not need to be cured
       under the terms of Section 1110(a)(2), and to do so within
       the time periods specified in Section 1110(a)(2).

In light of the size of the September 18, 2006 Payment, however,
Delta intends to have confirmation that if the Section 3.03
Amounts and the September 18, 2006 Payment are both timely paid,
then these payments will be applied in accordance with the terms
of the Intercreditor Agreement.

In a stipulation, Delta and U.S. Bank agree that, assuming that
Delta pays in full on September 18, 2006, an amount equal to:

   (i) Intercreditor Agreement's Section 3.03 Amount; and

  (ii) all payments of principal and interest due with
       respect to the Equipment Notes as of September 18
       2006, which is $363,783,038,

then the Subordination Agent will distribute to each Pass Through
Trustee, and each Pass Through Trustee will promptly distribute
to the holders as of the relevant record date of its Class of
Certificates the Adjusted Expected Distribution for each Class of
Certificates.

The parties agree that, once U.S. Bank, in its capacity as both
the Subordination Agent and the Pass Through Trustee, distributes
the September 18, 2006 Payment, any liability it may have had
with respect to the making of those payment will cease to exist.

U.S. Bank will not be responsible if any Certificate holders fail
to receive their respective portions of the September 18, 2006
Payment as long as it made distributions in accordance with the
Stipulation and the applicable provisions of the Pass Through
Trust Agreements.

Delta asks the U.S. Bankruptcy Court for the Southern District of
New York to approve the Stipulation.

                       About Delta Air Lines

Headquartered in Atlanta, Georgia, Delta Air Lines (Other
OTC: DALRQ) -- http://www.delta.com/-- is the world's second-
largest airline in terms of passengers carried and the leading
U.S. carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The Company
and 18 affiliates filed for chapter 11 protection on Sept. 14,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S.
Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in
their restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 40; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Wants to Walk Away from Aero Newark Sublease Agreement
-----------------------------------------------------------------
Delta Air Lines, Inc., is a party to:

    -- a Sub-Lease Agreement dated February 27, 1998, with Aero
       Newark, LLC, the successor-in-interest to Airis Newark,
       L.L.C.; and

    -- a related Consent to Sublease Agreement dated December 13,
       2000, and effective as of February 27, 1998, with the Port
       Authority of New York and New Jersey, and Aero Newark.

Delta subleases and has the right to use and occupy certain cargo
operations space, office space, and a ground service equipment
area as an air cargo handling facility, at the Newark
International Airport.

The Debtors have determined that certain facilities at the
Airport, including, without limitation, facilities used in
Delta's cargo operations, are uneconomical for their current
operations at the Airport and will therefore be vacated on
September 1, 2006.

Sharon Katz, Esq., at Davis Polk & Wardwell, in New York, relates
that Delta has made more economical arrangements for its cargo
operations at the Airport.  Delta intends to enter into a new
sublease agreement with Aero Newark to occupy reduced facilities
for Delta's unit load device repair shop on September 1, 2006.

Accordingly, the Debtors seek the U.S. Bankruptcy Court for the
Southern District of New York's authorization to reject the
Sublease Agreement and the Consent to the Sublease, effective
Sept. 1, 2006.

By rejecting the Agreements now, Delta will avoid incurring
unnecessary administrative charges for leased premises that are
not needed for its current operations at the Airport and that
provide no tangible benefit to the Debtors' estates, Ms. Katz
contends.

The Debtors also seek the Court's approval to abandon the
property related to the Sublease Agreement.

The Debtors propose that the holder of any claim for damages
arising from the rejected agreements should file a proof of claim
against the Debtors by the later of:

   (i) August 21, 2006; and

  (ii) 30 days after the effective date of the rejection or
       abandonment to which the claim relates.

                       About Delta Air Lines

Headquartered in Atlanta, Georgia, Delta Air Lines (Other
OTC: DALRQ) -- http://www.delta.com/-- is the world's second-
largest airline in terms of passengers carried and the leading
U.S. carrier across the Atlantic, offering daily flights to 502
destinations in 88 countries on Delta, Song, Delta Shuttle, the
Delta Connection carriers and its worldwide partners.  The Company
and 18 affiliates filed for chapter 11 protection on Sept. 14,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S.
Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in
their restructuring efforts.  Timothy R. Coleman at The Blackstone
Group L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 40; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


EMMIS COMMS: Sells WKCF-TV to Hearst-Argyle for $217.5 Million
--------------------------------------------------------------
Hearst-Argyle Television, Inc., has completed its acquisition of
the assets of WKCF-TV in Orlando, Florida, from Emmis
Communications for $217.5 million in cash.

The acquisition adds a television duopoly in the
Orlando/Daytona/Melbourne television market, where Hearst-Argyle
also owns WESH-TV, the market's NBC affiliate.  WKCF, formerly
affiliated with The WB Network, becomes a CW Network affiliate
next month.  It will be operated from the WESH facility.

The transaction was funded with cash on hand and an advance under
the Hearst-Argyle's unused $250 million credit facility.

With the WKCF acquisition, Hearst-Argyle now has duopolies in five
of its seven largest markets: Boston, Sacramento, Kansas City, MO;
Orlando and Baltimore, where the company has a radio/television
combination.

"We are pleased to conclude our acquisition of WKCF and we welcome
the staff of WKCF to the Hearst-Argyle family of stations," David
Barrett, Hearst-Argyle president and chief executive officer,
said.  "The combination of WESH with WKCF will enhance the local
television service of each station and enable us to better serve
the interests and needs of our audiences, advertisers and the
entire Orlando community.  WKCF will benefit from WESH's extensive
newsgathering resources and, together, our stations will provide
viewers of all ages with the very best in entertainment, news and
information programming, and community service.

"As our industry moves forward into the new era of digital
television, video multicasting and web-based video services, the
duopoly at WESH and WKCF will be extraordinarily well positioned
to compete in one of America's most dynamic markets.  The
formation of this powerful TV duopoly is an important strategic
step for our company," Mr. Barrett added.

                        About Hearst-Argyle

Hearst-Argyle Television, Inc. (NYSE: HTV)
-- http://www.hearstargyle.com/-- owns 26 television stations,  
and manages an additional three television and two radio stations,
in geographically diverse U.S. markets.  The Company's television
stations reach approximately 18% of U.S. TV households. Hearst-
Argyle owns 12 ABC-affiliated stations, and manages an additional
ABC station owned by Hearst Corporation, and is the largest ABC
affiliate group.  The Company also owns 10 NBC affiliates, and is
the second-largest NBC affiliate owner, and owns two CBS
affiliates.

                    About Emmis Communications

Based in Indianapolis, Indiana, Emmis Communications Corporation
(NASDAQ: EMMS) -- http://www.emmis.com/-- is a diversified media  
firm with radio broadcasting, television broadcasting and magazine
publishing operations.  Emmis owns 22 FM and 2 AM domestic radio
stations serving New York, Los Angeles and Chicago as well as St.
Louis, Austin, Indianapolis and Terre Haute, Ind.  In addition,
Emmis owns a radio network, international radio interests, two
television stations, regional and specialty magazines, and
ancillary businesses in broadcast sales and publishing.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 24, 2006
Standard & Poor's Ratings Services' ratings on Emmis
Communications Corp., including the 'B+' corporate credit rating,
remained on CreditWatch with negative implications, where they
were placed on May 11, 2005.

In August 2005, Moody's placed the Company's long-term corporate
family rating at Ba3 with a negative outlook.


ENTERGY NEW: Court Approves United National & NORCO Settlement
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Louisiana
approves the settlement agreement among Entergy New Orleans, Inc.,
Norco Construction, Inc., and United National Insurance Company.

Pursuant to the settlement, United National, as Norco's insurer,
will pay $162,500 to settle the lawsuit filed by State Farm Fire
& Casualty Company against the three parties before the Civil
District Court for the Parish of Orleans, State of Louisiana.

In consideration of the cash payment made by Norco, State Farm
releases and dismisses the settlement parties from any claims and
damages arising from the December 20, 1993 gas explosion and fire
at a duplex residence at 334 West Robert E. Lee Boulevard in New  
Orleans, Louisiana.

Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.
-- http://www.entergy-neworleans.com/-- is a wholly owned  
subsidiary of Entergy Corporation.  Entergy New Orleans provides
electric and natural gas service to approximately 190,000 electric
and 147,000 gas customers within the city of New Orleans.  Entergy
New Orleans is the smallest of Entergy Corporation's five utility
companies and represents about 7% of the consolidated revenues and
3% of its consolidated earnings in 2004.  Neither Entergy
Corporation nor any of Entergy's other utility and non-utility
subsidiaries were included in Entergy New Orleans' bankruptcy
filing.  Entergy New Orleans filed for chapter 11 protection on
Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697).  Elizabeth J.
Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,
Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the
Debtor in its restructuring efforts.  Carey L. Menasco, Esq.,
Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,
at Liskow & Lewis, APLC, represent the Official Committee of
Unsecured Creditors.  When the Debtor filed for protection from
its creditors, it listed total assets of $703,197,000 and total
debts of $610,421,000.  (Entergy New Orleans Bankruptcy News,
Issue No. 22; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FAIRFAX FINANCIAL: Restates Annual Financials from 2001 to 2005
---------------------------------------------------------------
Fairfax Financial Holdings Limited filed its interim report for
the six months ended June 30, 2006, and its restated consolidated
financial statements and related disclosures pursuant to the
restatement previously announced on July 27, 2006.  

As a result of the restatement, shareholders' equity decreased
$235.3 million as at March 31, 2006, within the estimated range of
$225 to $240 million announced on July 27, 2006.  Due to
corrections reflected in the restatement, Fairfax's net earnings
for the three and six months ended June 30, 2006, were slightly
higher at $229.2 million and $427.6 million respectively than the
$223.6 million and $421.7 million for those periods respectively
announced on July 27, 2006.

        Restatement of Consolidated Financial Statements

The company has completed the restatement of its previously
reported consolidated financial statements as at and for the years
ended Dec. 31, 2001 through 2005 and all related disclosures, as
well as its unaudited consolidated financial statements as at and
for the three months ended March 31, 2006, and 2005.  

The company has filed audited restated consolidated financial
statements comprising the consolidated balance sheets as at
Dec. 31, 2005, and 2004, the restated consolidated statements of
earnings, shareholders' equity and cash flows for each of the
years in the three year period ended Dec. 31, 2005, and all
related disclosures, as well as unaudited consolidated financial
statements as at and for the six months ended June 30, 2006, and
2005.  These unaudited consolidated financial statements reflect
the restatement of the unaudited consolidated financial statements
as at and for the six months ended June 30, 2005, and the three
months ended March 31, 2006 and June 30, 2005.

The restatement of the company's consolidated financial statements
resulted from management's identification of various non-cash
accounting errors arising primarily in 2001 and prior.  

The restatement followed an internal review of the company's
consolidated financial statements and accounting records that was
undertaken in contemplation of the commutation of the Swiss Re
Cover (which was ultimately completed on Aug. 3, 2006) and that
identified an overstatement of the consolidated net assets of the
company and errors in accounting for the periodic consolidated
earnings.  

The effects of the restatement are reflected in the company's
audited restated consolidated 2005 financial statements and
accompanying notes and disclosures, and in the unaudited
consolidated financial statements and accompanying notes contained
in the company's interim report for the six months ended June 30,
2006.

On July 27, 2006, Fairfax had estimated that the impact of the
restatement would be a decrease in shareholders' equity as at
March 31, 2006 in a range of $225 million to $240 million.  

The total cumulative impact of the finalized restatement through
March 31, 2006 is to decrease shareholders' equity as at March 31,
2006, by $235.3 million.  

The $235.3 million total cumulative impact on shareholders' equity
comprises a decrease in the currency translation account in the
amount of $123.7 million, a decrease in retained earnings in the
amount of $99.5 million, a decrease in share capital (by way of an
increase in treasury stock) of $17.2 million, and an increase in
common stock of $5.1 million.  

Of the $99.5 million cumulative decrease in retained earnings, the
net effect of the restatement on earnings for each period is to
increase net earnings for the three months ended March 31, 2006,
by $26.3 million, decrease the 2005 net loss by $51.3 million,
decrease the 2004 net loss by $72.9 million, increase 2003 net
earnings by $18.6 million, decrease 2002 net earnings by
$10.1 million, increase the 2001 net loss by $182.7 million,
and decrease the net earnings of 2000 and prior years by
$75.8 million.

As part of the restatement process, Fairfax evaluated the impact
of the accounting errors in its assessment of internal control
over financial reporting under section 404 of the Sarbanes-Oxley
Act of 2002 as at Dec. 31, 2005.  

In its assessment of internal control over financial reporting,
management identified four material weaknesses.  As a result,
management has concluded that it did not maintain effective
internal control over financial reporting as of Dec. 31, 2005,
based on criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of
the Treadway Commission.  

To address the material weaknesses, management will implement a
remediation plan, which will supplement the existing controls of
the company.  

The material weaknesses will be fully remediated when, in the
opinion of the company's management, the revised control processes
have been operating for a sufficient period of time to provide
reasonable assurance as to their effectiveness.  

The Audit Committee of the company's Board of Directors will
review the remediation and ultimate resolution of the company's
material weaknesses.

Fairfax's Chief Executive Officer, Prem Watsa, reiterated his
comment of July 27, 2006, stating, "Our operating and investment
performance continues to be strong.  The restatement has not
impacted Fairfax's cash flows or the fundamental strength of our
business.  

"Cash and marketable securities at the holding company at quarter-
end exceeded $500 million, the regulatory capital at our operating
subsidiaries remains strong and, with the commutation of the Swiss
Re Cover, we do not expect to have any cash costs at the holding
company to fund European runoff through 2007.  That said, we take
very seriously our obligation to provide accurate financial
results, and our management team, having identified the accounting
errors, acted diligently to correct the errors and disclose our
restated results."

                     Second Quarter Earnings

Fairfax had net earnings of $229.2 million in the second quarter
of 2006 and $427.6 million in the first six months of 2006
(compared to $223.6 million and $421.7 million for those periods
respectively announced on July 27, 2006).  Net earnings per
diluted share were $12.14 for the second quarter and $22.65 for
the six months ended June 30, 2006.

At June 30, 2006, common shareholders' equity was $2.885 billion.

A full-text copy of Fairfax's Second Quarter 2006 Interim Report
is available for free at http://ResearchArchives.com/t/s?1108

Based in Toronto, Ontario, Fairfax Financial Holdings Limited
(TSX: FFH)(NYSE: FFH) -- http://www.fairfax.ca/-- is a financial  
services holding company, which, through its subsidiaries, is
engaged in property and casualty insurance and reinsurance,
investment management and insurance claims management.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Fitch Ratings did not change the ratings for Fairfax Financial
Holdings Limited following the company's disclosure that it will
commute a reinsurance contract and restate its financial results.

Fairfax Financial Holdings Limited's ratings that remain on Rating
Watch Negative include BB- Issuer Default Rating; B+ rating on
$62 million unsecured due April 15, 2008; B+ rating on $466
million unsecured due April 15, 2012; B+ rating on $100 million
unsecured due Oct 1, 2015; B+ rating on $184 million unsecured due
April 15, 2018; B+ rating on $98 million unsecured due April 15,
2026; B+ rating on $91 million unsecured due July 15, 2037; and B+
rating on $137 million convertible due July 15, 2023.

As reported in the Troubled Company Reporter on Aug. 2, 2006,
Moody's Investors Service maintained the negative outlook on
Fairfax Financial Holdings and affirmed the company's Ba3 rating
on senior unsecured debt.  This follows Fairfax's announced
restatement of the company's financials and the consequent
reduction in its common equity base.  FFH has also delayed the
release of its second quarter 2006 financial statements.

As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services placed a number of its ratings
on CreditWatch with negative implications, including its 'BB'
counterparty credit ratings on Fairfax Financial Holdings Ltd. and
Crum & Forster Holdings Corp.; 'BB-' counterparty credit rating on
TIG Holdings Inc.; various counterparty credit and financial
strength ratings on Fairfax's operating insurance company
subsidiaries; 'BBB-' counterparty credit rating on Odyssey Re
Holdings Corp.; and 'A-' counterparty credit and financial
strength ratings on Odyssey America Reinsurance Corp., Clearwater
Insurance Co., and Hudson Specialty Insurance Co. and 'A-'
financial strength rating on Falcon Insurance Co. (Hong Kong) Ltd.


FAMILYMEDS GROUP: July 1 Stockholders' Deficit Narrows to $4 Mil.
-----------------------------------------------------------------
Familymeds Group, Inc., filed its financial statements for the
second quarter ended July 1, 2006, with the Securities and
Exchange Commission on Aug. 15, 2006.

At July 1, 2006, the Company's balance sheet showed
$60.454 million in total assets and $64.918 million in total
liabilities, resulting in a $4.464 million stockholders' deficit.  
The Company had an $11.293 deficit at Dec. 31, 2005.

The Company's July 1 balance sheet also showed strained liquidity
with $47.666 million in total current assets available to pay
$59.349 million in total current liabilities coming due within the
next 12 months.

Revenues were $60.7 million for the second quarter 2006 compared
with $56 million in the prior quarter of 2006 and $54.7 million in
the second quarter of 2005.  Comparative sales for the same
locations, including the medical supply distribution businesses
for the second quarter of 2006 increased 9.5% to $59.9 million
compared with $54.7 million for the second quarter of 2005.

Overall gross margin was $11.9 million or 19.6% in second quarter
2006, compared with $10.9 million or 19.5% in the first quarter of
2006 and $11 million or 20.1% in second quarter 2005.  The
comparable gross margins as a percentage of revenues reflect the
Company's growing proportion of sales associated with Medicare
Part D and its direct-to-provider medical supply operations, both
of which have lower gross margins than those of the Company's
other pharmacy operations.

Selling, general and administrative expenses in the second quarter
2006 were $14.5 million, or 23.7% of revenues, compared with SG&A
expenses of $13.0 million, or 23.2% of revenues for the first
quarter 2006 and $14.0 million, or 25.6% of net revenues for
second quarter 2005.  The increase in SG&A expenses for the second
quarter of 2006 reflects additional selling and marketing expenses
associated with the growth of the Company's direct-to-provider
medical supply operations and the associated expansion of sales
and marketing staff in both the pharmacy and medical supply
components of the business.

Familymeds has implemented aggressive cost control initiatives
aimed at reducing its SG&A expenses at the Farmington, Conn.-
headquarters and non-customer service related expenses at the
pharmacies.  These expense control initiatives are expected to
result in an estimated decrease in total operating costs of
approximately 10%, or $2.8 million for the second half of fiscal
2006, and are based on operating expenses for the first half of
2006 of $27.4 million.  Total annualized operating expense
reductions are expected to be approximately $5.5 million or 11% of
overall estimated operating expenses.

Operating loss improved by $600,000 when compared to the second
quarter of 2005.  Operating loss was $3.5 million for the second
quarter 2006, compared with the operating loss of $4.1 million for
the second quarter of 2005.  The operating loss for the first
quarter of 2006 was $2.9 million.

Overall gross margin was $11.9 million or 19.6% in second quarter
2006, compared with $10.9 million or 19.5% in the first quarter of
2006 and $11.0 million or 20.1% in second quarter 2005.  The
comparable gross margins as a percentage of revenues reflect the
Company's growing proportion of sales associated with Medicare
Part D and its direct-to-provider medical supply operations, both
of which have lower gross margins than those of the Company's
other pharmacy operations.

Net income available to common stockholders was $7.8 million,
which includes a $13.1 million gain on the early extinguishment of
subordinated and convertible debt.  This compares to a net loss
available to common stockholders of $8.8 million for the second
quarter 2005 and a net loss of $4.1 million for the first quarter
2006.

"During the second quarter, our continuing focus on accelerating
organic growth delivered strong top line performance through an
improving mix of specialty medical products and pharmacy services
and our expanding population of patients to whom we provide
prescriptions," Ed Mercadante, R.Ph., chairman, and chief
executive officer of Familymeds, stated.

"Gross margin continues to move in the right direction as we
approach our overall target of 20% for fiscal 2006.  We are also
delivering on our sales channel expansion strategies, with plans
to open two new pharmacies in leading medical office buildings
during the second half of this year and a strong pipeline in place
for additional Worksite Pharmacy locations.

"While second quarter operating expenses increased over the prior
quarter, but improved as a percentage of revenue over last year,
we have recently taken prudent steps to substantially improve our
cost structure and prepare our business for profitable growth.

"We have effectively streamlined our operating model while
maintaining an optimal sales structure to facilitate continuing
sales momentum.

"We expect that our improved cost structure will drive an
operating expense reduction of 10% in the second half of 2006
which is based on operating expenses of $27.4 million for the
first half of 2006, and materially improve our financial results
this year."

Familymeds reduced its outstanding debt by $13 million during the
second quarter through its early retirement of $23 million in
outstanding subordinated debt with a former supplier.

Funds for the repayment came from a new debt instrument that will
facilitate improved cash flow over the next several years through
lower interest payments.

At July 1, 2006, cash and cash equivalents and bank availability
totaled approximately $5.6 million.  During the second quarter
2006, the Company's capital expenditures were $900,000.

Mr. Mercadante continued, "We will continue to execute against our
strategic plan by pursuing our organic growth plans for this year
as our primary vehicle for business expansion, with two to four
new pharmacy openings planned before year-end.

"During the first half of this year, we focused on increasing
comparatives, expanding revenues sequentially and improving our
capital structure by reducing debt and associated interest.  All
of these accomplishments are key indicators vital to our long-term
success.  

"Overall, we were pleased with our top-line momentum in the first
half of the year and believe we have achieved a meaningful
milestone by improving our debt and capital structure.

"During the second half of 2006, we believe we can sustain our
positive revenue momentum as we remain intensely focused on
improving profitability and overall cash liquidity.

"Based on our forecasted sales growth, expense reductions and
incremental improvement to gross margin, we expect to be breakeven
to modestly EBITDA positive in the third quarter of 2006, with
increased positive cash flow during the fourth quarter of this
year."

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?110a

Farmington, Conn.-based Familymeds Group, Inc. (Nasdaq: FMRX) --
http://www.familymeds.com/-- is a pharmacy and medical specialty  
product provider formed by the merger on Nov. 12, 2004, of
DrugMax, Inc., and Familymeds Group, Inc.  Familymeds operates 86
locations, including 7 franchised locations in 14 states under the
Familymeds Pharmacy and Arrow Pharmacy & Nutrition Center brand
names.  Familymeds offers a comprehensive selection of brand name
and generic pharmaceuticals, non-prescription healthcare-related
products, and diagnostic supplies to its patients, physicians,
clinics, long- term care and assisted living centers.


FLAG RESOURCES: Appeals Sanctions Imposed by TSX
------------------------------------------------
The Court of Appeals of Alberta suggested that there were some
procedural unfairness by the TSX Venture Exchange and the and
Alberta Securities Commission with regard to sanctions imposed
against Flag Resources (1985) Limited, including the delisting of
its shares and demands for the resignation of certain Flag
directors.

Flag is proposing to ask the Supreme Court of Canada to hear its
appeal against the sanctions issued by the Exchange.  Flag will
ask the Supreme Court to rule on whether the Exchange has the
legal right to demand the resignation of Directors.  Flag
recognizes the right of the Exchange in prohibiting an individual
from being a Director of a listed company, but questions their
right to demand that the individuals resign from a company,
believing that only shareholders or perhaps the courts have that
right.

At a May 11 hearing, the Court suggested that the Exchange should
have given Flag a choice, before deciding on its sanctions,
suggesting perhaps a $25,000 fine or a 30-day suspension.  The
Court suggested that the Exchange should have allowed Flag to
respond before and after the imposition of sanctions against it.

The Court suggested that the Alberta Securities Commission should
have allowed Flag to call witnesses, in addition to its Chairman
and President.  The Commission had allowed the Exchange to cross-
examine, in detail, Flag's Chairman and President, but refused to
allow Flag to cross-examine Exchange personnel.  However, in its
Memorandum of Judgment, on July 31, 2006, the Court, citing legal
precedence, stated that there had been no procedural unfairness by
the Exchange.

The two main allegations of non-compliance against Flag, by the
Exchange, were that the Settlement Agreement with Canada Customs
and Revenue (Revenue Canada) resulted in Flag paying $150,000 of
its President's personal tax liability.  The second allegation of
non-compliance was the late payment by Flag's President on his
exercise of stock options.

A. Alleged Payment by Flag of $150,000 of Flag's President's  
   Personal Tax

The Exchange's allegation that Flag paid $150,000 of its
President's tax liability was accepted by the Alberta Securities
Commission and the Court of Appeal of Alberta, although it was
denied by Revenue Canada, stating that settlement by Flag of its
tax liabilities would not be assessed as a benefit to Mr. McLeod,
Flag's President.  The effect of the settlement was not to settle
taxes payable, but to hold collection proceedings (Requirement to
Pay) in permanent abeyance.

It was confirmed again in an Oct. 2, 2004 letter from Revenue
Canada: "this letter is to confirm that Flag's tax liability has
arisen directly under subsections 224(1) and (4) of the Act,
provision wholly inapplicable to Mr. McLeod, in the circumstance,
and that the settled liability is that of Flag's."

The Exchange assumed that there had been a single Requirement to
Pay, when there were several, with which Flag had to deal, not
just one.  A Requirement to Pay served on Flag's banker resulted
in the seizure of $194,000 by Revenue Canada.

Flag's legal council had the seized funds paid into court.  At a
hearing on Aug. 23, 2001, a Master, Alberta Supreme Court,
returned the funds to Flag.

The Revenue Canada official involved endeavored to have the
Justice Department appeal the decision, but the time for appeal
had lapsed.

The same Revenue Canada official, six months later, in March 2002,
in the Settlement Agreement with Revenue Canada, levied the tax
liability of $150,000 against Flag, under 224(1) and (4) of the
Act.

At the time, Revenue Canada was issuing requirements to Pay, their
legal right to issue them was being challenged by legal
proceedings against them, stating that under terms of the
March 22, 1992 Security Agreement, between Murdo McLeod and
Revenue Canada, it was believed that the requirements to pay were
improper and requested that they be withdrawn.

Although legal counsel's recommendation to approve the settlement
was accepted by Flag, Flag's President, in retrospect, thought
Flag's $150,000 tax liability was excessive, and reached agreement
with Revenue Canada to pay $100,000 of the tax liability.

The Court of Appeal of Alberta, in its Memorandum of Judgment,
erred in stating that Flag's President received a benefit to the
detriment of Flag, as it was Flag that received a benefit from
Flag's President.

B. Late Payment of Stock Option

In March 2003, Flag filed a Debt Conversion Agreement with the
Exchange, for approval. Under the terms of the agreement, Flag
agreed to accept ten million shares of associated Golden Briar's
stock, valued at $0.l0 a share, for payment of indebtedness of
$1,151,000.

After considerable delay, the Exchange analyst, on July 17, 2003,
conditionally approved the filed agreement, subject to certain
conditions, including a referral to the S.E.C. for the proposed
amalgamation between Flag and Golden Briar, which had never been
proposed.  The conditions set forth in the July 17 letter were
answered by Flag's legal counsel, by letter, on Aug. 27, 2003,
with no response from the Exchange analyst.

In January 2004, the Exchange Analyst submitted an additional set
of conditions to Flag that were not relevant to the Debt
Conversion Agreement, asking for extensive geological information
on Flag's properties, for whatever reason.

The Debt Conversion Agreement was continually deferred for 15
months, along with three other filings, and is still in abeyance.

With the deferral, denying Flag the benefit of a $1,000,000 share
equity, Flag's President, to provide Flag with interim financing,
exercised options on 1,810,000 shares.  The shares were sold at a
substantial loss to Flag's President.

The failure of the Exchange to approve the Debt Conversion
Agreement, within a reasonable time frame, seriously diluted
Flag's shareholder value, by causing 1,810,000 share options to be
exercised and sold, to fill the vacuum caused by the Exchange's
failure to approve the Debt Transaction.

Other procedural unfairness, by the Exchange, noted by Flag,
included a letter dated Jan. 12, 2005, from the Exchange's
Director, Compliance and Disclosure, stating that Flag had failed
to disclose the resignation of Richard Dye as a director.  Flag
had not announced his resignation, as he had not resigned.  The
Exchange then communicated with Mr. Dye and got him to resign
three days later.

Mr. Dye's son wrote a letter to Flag about his Father's major
heart and diabetic problems and having trouble remembering things.  
Because of his physical and mental health problems, the 80 odd
years old Mr. Dye was not going to be reappointed at the next
annual meeting.  Flag questions the ethics of the Exchange
officials, under the circumstances, in going after Mr. Dye to
secure his resignation.

Another procedural unfairness was the Exchange's refusal to hold
discussions on any of the responses made by Flag, under questions
raised by the Exchange in its Compliance Review.  Every response
was met with a "Not Satisfactory" notation.

Flag believes the sanctions imposed by the Exchange against Flag
were excessive.  The Exchange did not attempt to abide by the
factors set down by the Supreme Court of Canada in determining the
extent and degree of sanctions that should be imposed.

Flag had been listed on the Exchange for 28 years, without ever
having any sanctions imposed by the Exchange.

With the delisting of Flag's shares by the Exchange, Flag's
Chairman, Sydney Miszchuk, to whom Flag had indebtedness in excess
of $7,000,000, could have seized all of Flag's assets.  He elected
instead to make the welfare of Flag's shareholders his prime
concern, advancing in excess of $800,000 from December 2004, to
Flag, to fulfill all its obligations and operating requirements.

                       About Flag Resources

Headquartered in Calgary, Alberta, Flag Resources (1985) Limited
is a mineral exploration company.

At March 31, 2006, the Company's balance sheet a stockholders'
deficit of $6,239,546, compared to a deficit of $6,170,949 at
Dec. 31, 2005.


FLAMINGO TERRACE: Case Summary & 13 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Flamingo Terrace Apartments, LLC
        1401 Elm Street, Suite 3800
        Dallas, TX 75202

Bankruptcy Case No.: 06-33749

Type of Business: The Debtor operates an apartment complex.

Chapter 11 Petition Date: September 4, 2006

Court: Northern District of Texas (Dallas)

Debtor's Counsel: N. Alex Bickley, Esq.
                  N. Alex Bickley & Associates, P.C.
                  1401 Elm Street, Suite 3800
                  Dallas, TX 75202
                  Tel: (214) 515-9685
                  Fax: (214) 515-9683

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 13 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Gexa Energy                        Utility Bill           $19,647
P.O. Box 659410
San Antonio, TX 78265

Center Point Energy                Utility                $12,175
P.O. Box 2628
Houston, TX 77252

RASA Floors                        Improvements            $6,476
P.O. Box 619130
Dallas, TX 75261

Allied Waste Services              Utility                 $5,639
8101 Little Yourk Road
Houston, TX 77016

City of Houston - Water Dept.      Utility                 $4,532
P.O. Box 1560
Houston, TX 77251

Presto                             Improvements            $3,900

Fantastic Floors                   Improvements            $3,133

Affordable Quality Electric        Improvements            $2,256

Houston Cable & Drain              Supply                  $1,580

Kwal Paint                         Improvements            $1,102

Roberto Compean                    Improvements            $1,270

Paul Bettencourt - Tax Assessor    Property Taxes            $188

Houston ISD                        Property Taxes            $111


GARY KINDER: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Gary D. Kinder
        Rebecca R. Kinder
        35 Commanders Cove
        Missouri City, TX 77459

Bankruptcy Case No.: 06-34487

Chapter 11 Petition Date: September 2, 2006

Court: Southern District of Texas (Houston)

Judge: Jeff Bohm

Debtors' Counsel: William G. Harris, Esq.
                  William G. Harris & Associates, P.C.
                  One Sugar Creek Center Boulevard, Suite 300
                  Sugar Land, TX 77478
                  Tel: (281) 243-2360
                  Fax: (281) 243-2326

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtors' 20 Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Guardian Life Insurance          Suite for alleged     $1,251,108
Company of America               breach of contract
7 Hanover Square
New York, NY 10004

Crescent Real Estate             Judgment                 $83,000
Funding, III, LP
c/o Randall C. Owens
Golden & Owens, LLP
1221 McKinney Street, Suite 3150
Houston, TX 77010

Amegy Bank                       Commercial Loan          $33,413
P.O. Box 27459
Houston, TX 77227-7459

MBNA America                     Credit Card              $26,420
P.O. Box 15137
Wilmington, DE 19886-5137

CitiCards                        Credit Card              $18,066
P.O. Box 660370
Dallas, TX 75266-0370

Chase Visa                       Credit Card              $13,261

BMW Financial Services           Credit Card              $12,730

Chase Visa                       Credit Card              $10,904

Direct Merchants Bank            Credit Card              $10,487

Home Depot                       Credit Card               $4,073

GE Money Bank                    Credit Card               $2,634

Allstate Property and            Insurance Services        $2,590
Casualty Insurance Co.

Office Depot                     Credit Card               $2,200

Sam's Club                       Credit Card                 $822

JC Penney                        Credit Card                 $695

Garden Ridge                     Credit Card                 $354

Victoria's Secret                Credit Card                 $254

Lawnology                        Vendor                      $246

Parkway Properties, LP           Lease                         $0

GEMB Lending                     Foreclosure Deficiency        $0


GENERAL MOTORS: Retail Sales Up 8% in August 2006
-------------------------------------------------
General Motors Corp.'s dealers in the United States sold 368,776
new cars and trucks in August.  Retail sales were up 8% on a sales
day adjusted basis, compared with August 2005.

"August retail sales were up almost 30,000 units compared to last
year.  That's great news.  This was one of the stronger retail
months of 2006, with our performance led by such launch vehicles
as the Pontiac Torrent and G6, Saturn Sky, Chevrolet Cobalt,
Impala and Buick Lucerne," Mark LaNeve, General Motors North
America vice president, Vehicle Sales, Service and Marketing,
said.

"Importantly, we're capitalizing on the sale of fuel-efficient
cars and trucks including such "30 mpg and Above Club" members as
Pontiac G6 coupe and G5, Chevy HHR, Cobalt, Malibu and Impala, and
Saab 9-3.  Our large pickup retail sales for Chevrolet Silverado,
Avalanche and GMC Sierra were up 27% compared with a year ago.  
Customers clearly are responding to the quality, value,
versatility and fuel efficiency of our cars and trucks. We
encourage everyone in the new-vehicle market to take advantage of
our Final Summer Bonus Cash sales event that runs through
September 5."

Due to the success of new products, GM has seen sales strengthen
over the last few months.  GM market share on a retail basis has
improved significantly in the last 90 days due to great launch
vehicle performance and a broad-range of fuel-efficient vehicles.

Consistent with our North America turnaround plan, GM continues to
run above 3 million retail units on an annualized basis.

GM also continues to reduce its reliance on low-margin daily
rental sales.  Daily rental sales were down 20% compared to year-
ago levels, and were down 23% compared to July 2006. Total fleet
sales (including daily rentals) were down 15% (14,112 vehicles)
compared to year-ago levels.

Total GM U.S. retail passenger car sales are up 5% versus August
last year, demonstrating that GM can compete in all product
categories and take advantage of shifting consumer preferences.

In August, GM North America produced 465,000 vehicles (179,000
cars and 286,000 trucks).  This is down 25,000 units or 5%
compared to August 2005 when the region produced 490,000 vehicles
(181,000 cars and 309,000 trucks).  (Production totals include
joint venture production of 26,000 vehicles in August 2006 and
28,000 vehicles in August 2005.)

The region's 2006 third quarter production forecast remains
unchanged at 1.050 million vehicles (405,000 cars and 645,000
trucks).  In the third quarter of 2005 the region produced 1.146
million vehicles (423,000 cars and 723,000 trucks).  Additionally,
the region's initial 2006 fourth quarter production forecast is
set at 1.130 million vehicles (455,000 cars and 675,000 trucks),
down approximately 12%, or 150,000 units, compared to 2005 fourth
quarter actuals.  This production adjustment does not reflect a
reduction in GM's sales outlook, but is consistent with our
strategy to reduce low-margin daily rentals, and takes into
account the plan to shift production of pick-ups to the next
generation pick-ups during the fourth quarter.

GM also announced 2006 revised third quarter and initial fourth
quarter production forecasts for its international regions.

GM Europe - GM Europe's 2006 third quarter production forecast
remains unchanged at 372,000 vehicles.  In the third quarter of
2005 the region built 412,000 vehicles.  The region's 2006 initial
fourth quarter production forecast is set at 451,000 units, up 2%
from 2005 fourth quarter actuals.

GM Asia Pacific -GM Asia Pacific's 2006 third quarter production
forecast is revised at 425,000 vehicles, down 13% from last
month's guidance.  In the third quarter of 2005 the region built
409,000 vehicles.  The region's 2006 initial fourth quarter
production forecast is set at 524,000 units, up 25% from 2005
fourth quarter actuals.

GM Latin America, Africa and the Middle East -The region's 2006
third quarter production forecast remains unchanged at 217,000
vehicles.  In the third quarter of 2005 the region built 207,000
vehicles.  The region's 2006 initial fourth quarter production
forecast is set at 211,000 units, up 12% from 2005 fourth quarter
actuals.

                       About General Motors

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the    
world's largest automaker, has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 317,000
people around the world.  It has manufacturing operations in 32
countries and its vehicles are sold in 200 countries.

                           *     *     *

As reported in the Troubled Company Reporter on July 28, 2006,
Standard & Poor's Ratings Services held all of its ratings on
General Motors Corp. -- including the 'B' corporate credit rating,
but excluding the '1' recovery rating -- on CreditWatch with
negative implications, where they were placed March 29, 2006.  The
CreditWatch update followed GM's announcement of second quarter
results and other recent developments involving its bank facility
and progress on the GMAC sale.

As reported in the Troubled Company Reporter on July 27, 2006,
Dominion Bond Rating Service downgraded the long-term debt ratings
of General Motors Corporation and General Motors of Canada Limited
to B.  The commercial paper ratings of both companies are also
downgraded to R-3 (low) from R-3.

As reported in the Troubled Company Reporter on June 22, 2006,
Fitch assigned a rating of 'BB' and a Recovery Rating of 'RR1' to
General Motor's new $4.48 billion senior secured bank facility.
The 'RR1' is based on the collateral package and other protections
that are expected to provide full recovery in the event of a
bankruptcy filing.

As reported in the Troubled Company Reporter on June 21, 2006,
Moody's Investors Service assigned a B2 rating to the secured
tranches of the amended and extended secured credit facility of up
to $4.5 billion being proposed by General Motors Corporation,
affirmed the company's B3 corporate family and SGL-3 speculative
grade liquidity ratings, and lowered its senior unsecured rating
to Caa1 from B3.  The rating outlook is negative.


GENESIS BIOVENTURES: Relocates to California from Canada
--------------------------------------------------------
Genesis Bioventures, Inc., has opened its new corporate
headquarters in Los Angeles, completing its planned relocation to
California from Vancouver, Canada.

The Company disclosed that moving the Company to California, the
world's leading center of biomedicine, biotechnology and high
technology, was a key milestone in the Company's reorganization.

Douglas Lane, chief executive officer and chairman, said,
"Establishing Genesis Bioventures in California is a key step in
our planned reorganization, restructuring and turn-around of the
Company and marks the beginning of our new company.  The office
location we selected is in the heart of one of California's top
finance, business, research, and technology centers, and gives us
immediate high-level access to key business, commercial and
science resources that we intend to fully utilize to grow our
company," Mr. Lane further said, "The relocation to Los Angeles
completes our reorganization and enables us to focus our
management and capital resources on our external commercial
objectives."

Mr. Lane stated, "Genesis Bioventures is developing substantial
commercial opportunities.  Most importantly, the focus of our new
company has changed substantially and is now keenly focused on the
commercialization of the Mammastatin Serum Assay and PDL's BSE
Rapid Assay for Mad Cow Disease."  

He also said, "The reorganization, corporate development and
management infrastructure is now in place.  As part of our growth
plan, we intend to add additional world class partners and
individuals to achieve our commercial objectives."

                     About Genesis Bioventures

Headquartered in Los Angeles, Calif., Genesis Bioventures, Inc.,
(OTC BB: GBIW) -- http://www.gnsbio.com/-- is a biomedical  
development corporation focusing on the development and
commercialization of novel diagnostics and therapeutics in
oncology and neurodegenerative diseases.

                        Going Concern Doubt

De Joya Griffith & Company, LLC, expressed substantial doubt about
Genesis Bioventures, Inc.'s ability to continue as a going concern
after auditing the Company's financial statements for the years
ended Dec. 31, 2005 and 2004.  The auditing firm pointed to the
Company 's recurring losses from operations, negative working
capital, and negative cash flows from operations.


GILBERT ELES: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Gilbert R. Eles, Sr.
        4130 Bakerstown Road
        Gibsonia, PA 15044

Bankruptcy Case No.: 06-24317

Type of Business: The Debtor filed for chapter 11 protection on
                  March 31, 2006 (Bankr. W.D. Pa. Case No. 06-
                  21364).

Chapter 11 Petition Date: September 4, 2006

Court: Western District of Pennsylvania (Pittsburgh)

Debtor's Counsel: James A. Prostko, Esq.
                  U.S. Steel Tower, Suite 660
                  600 Grant Street
                  Pittsburgh, PA 15219
                  Tel: (412) 261-2755
                  Fax: (412) 261-2760

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

The Debtor did not file a list of its 20 largest unsecured
creditors.


IELEMENT CORP: 2003 Recapitalization Cues Financials Restatement
----------------------------------------------------------------
iElement Corporation filed amended financial statements for the
fiscal years March 31, 2006, Dec. 31, 2004, and 2003, and the
quarter ended March 31, 2004, with the Securities and Exchange
Commission on Aug. 31, 2006.

The amendment relates to the recapitalization of the Company by
Integrated Communications Consultants Corporation on March 1,
2003.  In a recapitalization, fair value adjustments and goodwill
are not recognized.  The restatement corrects the reporting of
this transaction by removing those adjustments relating to fair
value and goodwill.

The Company reported a restated net loss of 1,426,084 on
$4,550,092 of service revenue for the year ended March 31, 2006,
compared to a $295,041 net loss on $5,954,772 of service revenue
for the same period in 2005.

At March 31, 2006, the Company's balance sheet showed $2,049,815
in total assets and $3,067,219 in total liabilities, resulting in
a $1,017,404 stockholders' deficit.

The company's Statement of Operations showed:

                         For the period ended
                  ------------------------------------
                     Year         Year        Quarter
                   12/31/04     12/31/04      03/31/04
                  ----------   ----------   ----------  
Revenue           $5,954,772   $4,552,436   $1,530,427

Net (Loss)        ($295,041)   ($265,056)    ($68,280)

Full-text copy of the Company's restated second quarter financials
is available for free at http://researcharchives.com/t/s?1100

                        Going Concern Doubt

Bagell, Josephs Levine & Company, L.L.C., in Gibbsboro, New
Jersey, raised substantial doubt about IElement Corporation, fka
Mailkey Corporation's ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
years ended March 31, 2006, Dec. 31, 2004 and 2003.  The auditor
pointed to the Company's operating losses and capital deficits.

                    About iElement Corporation

iElement Corporation fka Mailkey Corporation (OTCBB: IELM)  --
http://www.ielement.com/-- provides telecommunications services    
to small and medium sized businesses.  IElement provides broadband
data, voice and wireless services by offering integrated T-1 lines
as well as a Layer 2 Private Network and VOIP solutions.  IElement
has a network presence in 18 major markets in the United States,
including facilities in Los Angeles, Dallas, and Chicago.


INCO LTD: CVRD Gets Canadian & U.S. Antitrust OK for Inco Offer
---------------------------------------------------------------
Companhia Vale do Rio Doce has obtained antitrust clearances from
the Canadian Competition Bureau and the United States competition
authorities with respect to its offer to acquire all the
outstanding shares of Inco Limited if the Brazil mining company
can win shareholder support for its $17 billion cash bid, reports
Associate Press Business Writer Alan Clendenning.

As reported in the Troubled Company Reporter on Aug. 30, 2006,
Inco's Board of Directors continues to recommend that shareholders
vote in favor of the proposed combination between Inco and Phelps
Dodge Corp. at the special meeting of Inco shareholders on
Sept. 7, 2006.  Accordingly, the Board has recommended that Inco
shareholders reject CVRD's offer to purchase for cash all of the
outstanding common shares of Inco.

Inco has been negotiating with CVRD to increase the bid, but CVRD
has no plans on improving the offer.  Phelps Dodge hasn't
increased its offer either after an initial raise.  Phelps Dodge's
shareholders are concerned over the level of debt the Company
would incur to complete the merger, Mr. Clendenning relates.

Analysts have said that investors might support the CVRD offer
after Teck Cominco Limited withdrew from the bidding, and Inco's
stock settled at about $77 -- the value of CVRD's bid -- because
it is all cash, writes Mr. Clendenning.

                      About Phelps Dodge

Headquartered in Phoenix, Arizona, Phelps Dodge Corp. (NYSE: PD)
-- http://www.phelpsdodge.com/-- produces copper and molybdenum
and is the largest producer of molybdenum-based chemicals and
continuous-cast copper rod.  The company and its two divisions,
Phelps Dodge Mining Co. and Phelps Dodge Industries, employ
approximately 13,500 people worldwide.

                         About CVRD

Headquartered in Rio de Janeiro, Brazil, Companhia Vale do Rio
Doce -- http://www.cvrd.com.br/-- engages primarily in mining
and logistics businesses. It engages in iron ore mining, pellet
production, manganese ore mining, and ferroalloy production, as
well as in the production of nonferrous minerals, such as
kaolin, potash, copper, and gold.

                       About Inco Ltd.

Headquartered in Sudbury, Ontario, Inco Limited (TSX, NYSE:N) --
http://www.inco.com/-- produces nickel, which is used primarily
for manufacturing stainless steel and batteries.  Inco also
mines and processes copper, gold, cobalt, and platinum group
metals.  It makes nickel battery materials and nickel foams,
flakes, and powders for use in catalysts, electronics, and
paints.  Sulphuric acid and liquid sulphur dioxide are produced
as byproducts.  The company's primary mining and processing
operations are in Canada, Indonesia, and the U.K.

                          *     *     *

Inco Limited's 3-1/2% Subordinated Convertible Debentures due
2052 carry Moody's Investors Service's Ba1 rating.


INEX PHARMA: Gets $1 Mil. Licensing Payment from Hana Biosciences
-----------------------------------------------------------------
Inex Pharmaceuticals Corporation's partner Hana Biosciences has
enrolled the first patient in a Phase 1 human clinical trial
evaluating the safety, tolerability and preliminary efficacy of
INX-0125 (sphingosomal vinorelbine) as a treatment for advanced
solid tumors.

Commencement of patient dosing for this trial triggers a
$1 million milestone payment from Hana to INEX as part of
the agreement announced May 8, 2006, in which Hana licensed three
products from INEX's Targeted Chemotherapy pipeline, including
INX-0125.

Timothy M. Ruane, President and Chief Executive Officer of INEX,
said Hana's progress on INX-0125 in the three months since the
licensing agreement was announced is a positive indication for the
future of the relationship.  "We're pleased that Hana has been
able to advance INX-0125 to a phase 1 clinical trial as quickly as
they have.  We will continue to support them as they move our
products through development."

After INEX pays third-party obligations of $200,000, the Company
will forward the remainder of the Hana milestone payment to former
INEX noteholders as provided in the agreement with noteholders
announced June 20, 2006.  This payment will reduce INEX's future
contingent payments to the noteholders from $24.4 million to
$23.6 million.

In a June 20, 2006, announcement, INEX reported that it had signed
a definitive note purchase and settlement agreement with all of
the holders of certain convertible promissory notes issued by a
wholly-owned subsidiary of INEX and guaranteed by INEX.  The notes
were owned by institutional investors.

Future payments to the former noteholders are contingent on INEX
receiving milestone or royalty payments from Hana and other
consideration received by INEX should it complete the corporate
reorganization that will be voted upon by INEX shareholders
Sept. 20, 2006.  The form of corporate reorganization contemplated
in the note purchase agreement would transfer all of INEX's
pharmaceutical assets to its subsidiary, Tekmira Pharmaceuticals
Corporation.

All of the shares in Tekmira would be distributed pro rata to INEX
shareholders allowing INEX to raise additional capital in
connection with the acquisition of a new business and this capital
would be transferred to the noteholders.  If INEX does not receive
any future proceeds from Hana or from the contemplated corporate
reorganization then it will not owe the noteholders any additional
consideration or payments.  No interest will accrue on the amount
owed to the noteholders.

                           About INEX

Based in Vancouver, Canada, Inex Pharmaceuticals Corporation
(NASDAQ: HNAB) -- http://www.inexpharma.com/-- is a  
biopharmaceutical company developing and commercializing
proprietary drugs and drug delivery systems to improve the
treatment of cancer.

At June 30, 2006, the Company's balance sheet showed a
stockholders' deficit of CDN$3,878,468, compared to a deficit of
CDN$21,478,441 at Dec. 31, 2005.


INEX PHARMA: Protiva Wants Involvement in Tekmira Spinout Deals
---------------------------------------------------------------
Protiva Biotherapeutics Inc. filed a motion, on Sept. 1, 2006,
with the Supreme Court of British Columbia seeking a declaration
and order preventing the assignment of agreements and intellectual
property from Inex Pharmaceuticals Corporation to Tekmira
Pharmaceuticals Corporation without prior consent from Protiva.

The filing includes an amendment to the March 23, 2006 statement
of claim filed by Protiva against Inex; Inex's CEO, Timothy Ruane;
and three Inex directors: David Main, Dr. Pieter Cullis and
Darrell Elliot.

Protiva is seeking a hearing on the matter on or before September
20, 2006.  Inex currently has a special meeting of shareholders
scheduled for September 20, 2006, at which time Inex will seek
approval to spinout the company's assets into Tekmira.

                          About Protiva

Based in Vancouver, British Columbia, Protiva Biotherapeutics Inc.
-- http://www.protivabio.com/-- is focused on the development of  
nucleic acid based pharmaceutical products to fight serious human
diseases, such as cancer, influenza (including H5N1), Ebola,
inflammatory diseases and other chronic viral infections.  
Validated in human clinical trials, Protiva's proprietary Stable
Nucleic-Acid Lipid Particle technology is an encapsulation and
delivery system for nucleic acid payloads, such as short
interfering RNA, aptamers, and plasmid DNA, to target cells.  It
represents a breakthrough in the field of RNA interference.

                           About INEX

Based in Vancouver, Canada, Inex Pharmaceuticals Corporation
(NASDAQ: HNAB) -- http://www.inexpharma.com/-- is a  
biopharmaceutical company developing and commercializing
proprietary drugs and drug delivery systems to improve the
treatment of cancer.

At June 30, 2006, the Company's balance sheet showed a
stockholders' deficit of CDN$3,878,468, compared to a deficit of
CDN$21,478,441 at Dec. 31, 2005.


JOCELYN WHITE: Case Summary & 40 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Jocelyn White Productions, Inc.
        2655 Villa Creek Drive, Suite 299
        Dallas, TX 75234
        Tel: (972) 243-2270

Bankruptcy Case No.: 06-33670

Debtor-affiliates filing separate chapter 11 petitions:

      Entity                             Case No.
      ------                             --------
      Designing Texas Catalog, LLC       06-33675

Type of Business: The Debtor produces an upscale regional home and
                  garden show called "Designing Texas".  The
                  program offers segments on custom home builders,
                  architects, and interior designers showcasing
                  their projects, as well as tours of celebrity
                  homes.  See http://www.designingtexas.com/

Chapter 11 Petition Date: September 1, 2006

Court: Northern District of Texas (Dallas)

Judge: Barbara J. Houser

Debtor's Counsel: Frank Jennings Wright, Esq.
                  Hance, Scarborough, Wright, Ginsberg and
                  Brusilow, LLP
                  14755 Preston Road, Suite 600
                  Dallas, TX 75254
                  Tel: (972) 419-4726
                  Fax: (972) 239-0138

Estimated Assets: Less than $50,000

Estimated Debts:  $1 Million to $10 Million

A. Jocelyn White Productions, Inc.'s 20 Largest Unsecured
   Creditors:

   Entity                             Claim Amount
   ------                             ------------
Thomas Musick                           $1,900,000
5949 Sherry Lane
Dallas, TX 75225

Emmis Texas Monthly                        $64,000
Louis Flaig
P.O. Box 1569
Austin, TX 78767-1569

Nicole Brende                              $28,228
2700 Albany Street
Houston, TX 77006

InterNetwork Experts Inc.                  $15,000
Department 523
P.O. Box 4346
Houston, TX 77210-4346

Steven C. Hastings                          $9,145
1020 Alamo Drive
Southlake, TX 76092

Media Savvy                                 $6,000

Compass Bank                                $4,831

PixelCuts, LLC                              $3,288

Blue Cross Blue Shield                      $3,241

Golden, Dellinges & Redd, LP                $3,025

Southwest Captioning Service                $2,120

Comtel Pro Media LLC dba DirectTape.com     $1,669

Cedar Creek Technologies                    $1,521

Carrington Coleman                          $1,397

Farmers Insurance Group                       $554

TexPrompt, Inc.                               $495

Fox Byrd & Golden                             $320

Stocks Insurance Agency                       $262

Preferred Group                               $208

Kennedy's ENG                                 $145

B. Designing Texas Catalog, LLC's 20 Largest Unsecured
   Creditors:

   Entity                             Claim Amount
   ------                             ------------
Emmis Texas Monthly                        $64,000
Louis Flaig
P.O. Box 1569
Austin, TX 78767-1569

Carrington Coleman                         $54,009
Craig Weinlein
901 Main Street, Suite 5500
Dallas, TX 75202

Andrews, Kurth LLP                         $50,700
1717 Main Street, Suite 3700
Dallas, TX 75201

Segnant Technologies                       $38,760
Raj Oberoi
1431 Greenway Drive, Suite 230
Irving, TX 75038

Search Financial Services, LP              $11,616
Donald Braun
6801 Gaylord Parkway, Suite 100
Frisco, TX 75034

Buckley Teleen                              $7,109

Personalized Communications                 $5,456

Rustic Elegance                             $4,032

Catstudio                                   $3,845

Conifer Creations                           $3,128

Kid Kraft                                   $2,635

Buffalo Specialty, Inc.                     $2,095

Groovy Stuff                                $2,000

Golden, Dellinges & Redd, LP                $1,625

VBC Distribution                            $1,420

Zone Denmark                                $1,406

Santa's Workshop                            $1,405

Wine Enthusiast                             $1,362

Out on a Limb                               $1,325

La Di Da                                    $1,019


KAISER ALUMINUM: Court Approves Royal Settlement Agreement
----------------------------------------------------------
The Honorable Judith Fitzgerald of the U.S. Bankruptcy Court for
the District of Delaware grants Kaiser Aluminum & Chemical Corp.'s
request and directs the company to dismiss, without prejudice, its
claims, counterclaims or cross-claims against Royal Indemnity
Company in the Products Coverage Action.

As reported in the Troubled Company Reporter on July 12, 2006, the
Debtors asked the Court to approve their settlement agreement with
Royal Indemnity relating to asbestos and other liability coverage
disputes.

The parties will bear their own costs, expenses and counsel fees
in the Products Coverage Action.  Judge Fitzgerald does not
prohibit KACC from recovering its costs, expenses and counsel fees
in the Products Action from any entity other than Royal Indemnity.

Judge Fitzgerald notes that Royal Indemnity's full payment of the
$4,500,000 settlement amount will satisfy and extinguish in full
its obligations under the insurance policies it issued to KACC.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading    
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on Feb.
12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a
number of its commodity businesses during course of its cases.  
Corinne Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts. Lazard Freres & Co. serves as the Debtors'
financial advisor.  Lisa G. Beckerman, Esq., H. Rey Stroube, III,
Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes
represent the Debtors' Official Committee of Unsecured Creditors.  
The Debtors' Chapter 11 Plan became effective on July 6, 2006.  On
June 30, 2004, the Debtors listed $1.619 billion in assets and
$3.396 billion in debts.  (Kaiser Bankruptcy News, Issue No. 104;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 609/392-0900)


KAISER ALUMINUM: Reports Class Settlement Fund in Second Quarter
----------------------------------------------------------------
Kaiser Aluminum & Chemical Corporation's Tort Claims Settlement
Fund reports $15,347,686 in total investments for the quarter
ending June 30, 2006.

For the period April 1 through June 30, 2006, the Tort Claims
Settlement Fund made cash disbursements totaling $12,844,714.  It
held $15,248,306 in principal cash as of June 30.

Kaiser's Asbestos Claims Settlement Escrow reports $17,037,946 in
total investments for the quarter ending June 30, 2006.

The Asbestos Claims Settlement Escrow made cash disbursements
totaling $1,664,844 in the second quarter, and held $16,335,299 in
principal cash as of June 30, 2006.

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading    
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on Feb.
12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a
number of its commodity businesses during course of its cases.  
Corinne Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts. Lazard Freres & Co. serves as the Debtors'
financial advisor.  Lisa G. Beckerman, Esq., H. Rey Stroube, III,
Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes
represent the Debtors' Official Committee of Unsecured Creditors.  
The Debtors' Chapter 11 Plan became effective on July 6, 2006.  On
June 30, 2004, the Debtors listed $1.619 billion in assets and
$3.396 billion in debts.  (Kaiser Bankruptcy News, Issue No. 104;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 609/392-0900)


KL INDUSTRIES: Wants Exclusive-Filing Period Stretched to Oct. 6
----------------------------------------------------------------
KL Industries, Inc., asks the Honorable Carol A. Doyle of the U.S.
Bankruptcy Court for the Northern District of Illinois in Chicago
to extend until Oct. 6, 2006, the period within which it has the
exclusive right to file a plan of reorganization and disclosure
statement.

The Debtor will sell its remaining assets on a going concern
basis.  The Debtor retained CM&D Capital Advisors LLC to
facilitate the sale of its assets.  At present, CM&D is actively
soliciting interest in the Debtor's business.

The Debtor also continues to analyze and pursue recovery of over
$4.8 million in transfers that may be avoidable under Section 547
of the Bankruptcy Code.  

The Debtor believes that the results of these efforts will impact
the plan process.

Headquartered in Addison, Illinois, KL Industries, Inc.,
manufactures springs, assemblies and other products for the
automotive and electronic markets.  The Company does business as
KL Spring & Stamping Division, KL Spring Division, KL Stamping
Division, KL Assembly Division and American Metal Forming
Division.  The Company filed for bankruptcy protection on May 2,
2006 (Bankr. N.D. Ill. Case No. 06-04882).  Peter J. Roberts,
Esq., and Steven B. Towbin, Esq., at Shaw Gussis Fishman Glantz
Wolfson & Towbin LLC represent the Debtor in its restructuring
efforts.  The Official Committee of Unsecured Creditors has
retained Winston & Strawn LLP, to represent it in the Debtor's
case.  CM&D Capital Advisors LLC is the Debtor's financial
Advisor.  In its schedules of assets and liabilities, the Debtor
listed $10,462,451 in total assets and $11,898,913 in total
liabilities.  The Debtor wants its exclusive-filing period
extended to Oct. 6, 2006.


KL INDUSTRIES: Has Until November 28 to Decide on Two Leases
------------------------------------------------------------
The Honorable Judge Carol A. Doyle of the U.S. Bankruptcy Court
for the Northern District of Illinois in Chicago extended, until
Nov. 28, 2006, KL Industries, Inc.'s period to assume, assume and
assign, or reject unexpired leases of two nonresidential real
property.

The Debtor leases space at 787 Belden Avenue in Addison, Illinois,
from Prairie Dog General Partnership.  The Addison Lease is a
10-year lease that terminates on Dec. 31, 2014, with a $35,247
monthly rent.

The Debtor also leases approximately 9,000 square feet of an
industrial facility in Marion, South Carolina, with H.C. Graham
Trust.  The Marion Lease is a five-year lease with two-, three-
year options.  Before filing for bankruptcy, the Debtor exercised
both options.  The Marion Lease will expire on Nov. 30, 2006, and  
costs $1,631.30 per month.

The Debtor will sell its remaining assets on a going concern
basis.  The Debtor retained CM&D Capital Advisors LLC to
facilitate the sale of its assets.  At present, CM&D is actively
soliciting interest in the Debtor's business.

Until the sale process is complete, the Debtor requires the
continued use of its leased facilities in Addison, Illinois, and
Marion, South Carolina.

The Debtor's secured lender has recently agreed to continue to
fund the Debtor's operations through October 2006.

Headquartered in Addison, Illinois, KL Industries, Inc.,
manufactures springs, assemblies and other products for the
automotive and electronic markets.  The Company does business as
KL Spring & Stamping Division, KL Spring Division, KL Stamping
Division, KL Assembly Division and American Metal Forming
Division.  The Company filed for bankruptcy protection on May 2,
2006 (Bankr. N.D. Ill. Case No. 06-04882).  Peter J. Roberts,
Esq., and Steven B. Towbin, Esq., at Shaw Gussis Fishman Glantz
Wolfson & Towbin LLC represent the Debtor in its restructuring
efforts.  The Official Committee of Unsecured Creditors has
retained Winston & Strawn LLP, to represent it in the Debtor's
case.  CM&D Capital Advisors LLC is the Debtor's financial
Advisor.  In its schedules of assets and liabilities, the Debtor
listed $10,462,451 in total assets and $11,898,913 in total
liabilities.  The Debtor wants its exclusive-filing period
extended to Oct. 6, 2006.


KRISPY KREME: Settles Suit with Sweet Traditions
------------------------------------------------
Krispy Kreme Doughnut Corporation, a wholly-owned subsidiary of
Krispy Kreme Doughnuts, Inc., has reached litigation settlement
with Sweet Traditions, LLC and Sweet Traditions of Illinois, LLC.

The Company, in July 2005, was sued by one of its area developers,
Sweet Traditions, LLC, and its Illinois corporate entity, Sweet
Traditions of Illinois, LLC, in the Circuit Court for St. Clair
County, Illinois.  The case was subsequently removed to the United
States District Court for the Southern District of Illinois.

The Company disclosed that parties filed a joint stipulation for
dismissal of the litigation with prejudice with the Court and the
case was dismissed on Aug. 28, 2006.  The resolution of the matter
will not result in any accounting charge to the Company.

                        About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded  
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites operating
systemwide in 43 U.S. states, Australia, Canada, Mexico, the
Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC
is a majority-owned subsidiary and franchisee partner of Krispy
Kreme Doughnuts, Inc., in the Philadelphia region.  The Debtor
operates six out of the approximately 360 Krispy Kreme stores and
50 satellites located worldwide.  The Company filed for chapter 11
protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268).
M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew
Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP,
represent the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it estimated
$10 million to $50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is
a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter 11
protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932).
The bankruptcy filing will facilitate the sale of 12 Krispy Kreme
stores, as well as the franchise development rights for Colorado,
Minnesota and Wisconsin, for approximately $10 million to Westward
Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho,
Wyoming and Montana.  Daniel A. Zazove, Esq., at Perkins Coie LLP
represents Glazed in its restructuring efforts.  When Glazed filed
for protection from its creditors, it estimated assets and debts
between $10 million to $50 million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


LE GOURMET: U.S. Trustee Appoints Five-Member Creditors Committee
-----------------------------------------------------------------
The U.S. Trustee for Region 3 appointed five creditors to serve on
an Official Committee of Unsecured Creditors in Le Gourmet Chef,
Inc.'s chapter 11 case:

    1. TBB Global Logistics, Inc.
       Attn: Pam Prakke
       802 Far Hills Drive
       New Freedom, PA 17349
       Tel: (717) 227-5577
       Fax: (717) 227-5077

    2. Robert Rothschild Farm, LLC
       Attn: Dominic Maxwell
       3143 East U.S. Highway 36
       Urbana, OH 43078
       Tel: (937) 653-7397
       Fax: (937) 652-1044

    3. Simon Property Group, LP
       Attn: Ronald M. Tucker
       225 W. Washington Street
       Indianapolis, IN 46204
       Tel: (317) 263-2346
       Fax: (317) 263-7901

    4. Xcell International
       Attn: Dean J. Henning
       181 Shore Court
       Burr Ridge, IL 60527
       Tel: (630) 323-0107
       Fax: (630) 3230217

    5. TLC Candle Corp.
       Attn: John Copeland
       1031 Le Grand Blvd.
       Charleston, SC 29492
       Tel: (843) 216-8380
       Fax: (843) 216-8386

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense.  They may investigate the Debtors' business and financial
affairs.  Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.  Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest.  If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee.  If the Committee concludes reorganization
of the Debtors is impossible, the Committee will urge the
Bankruptcy Court to convert the chapter 11 cases to a liquidation
proceeding.

Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in  
solutions for entertaining and gift giving.  The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Traub, Bonacquist, & Fox, LLP, represent the Debtor.
When the Debtor filed for bankruptcy, the Debtor estimated its
assets and debts at $10 million to $50 million.


LE GOURMET: Creditors Committee Taps Lowenstein Sandler as Counsel
------------------------------------------------------------------
The Official Committee of Unsecured Creditors of Le Gourmet Chef,
Inc., asks the U.S. Bankruptcy Court for the District of New
Jersey, for the authority to retain Lowenstein Sandler, PC, as its
Counsel, effective Aug. 16, 2006.

Lowenstein Sandler will:

   (a) provide legal advice with respect to the Creditors
       Committee's powers and duties as an official committee
       appointed under 11 U.S.C. 1102;

   (b) assist the Creditors Committee in investigating the acts,
       conduct, assets, liabilities, and financial condition of
       the Debtor, the operation of the Debtor's business,
       potential claims, and any other matters relevant to the
       case or to the formulation of a plan of reorganization;

   (c) participate in the formulation of a plan;

   (d) provide legal advice with respect to any disclosure
       statement and plan filed relative to the case and with
       respect to the process for approving or disapproving
       disclosure statements and confirming or denying
       confirmation of a plan;

   (e) prepare on behalf of the Creditors Committee applications,
       motions, complaints, answers, orders, agreements and other
       legal papers;

   (f) appear in Court to present necessary motions, applications,
       and pleadings, and otherwise protect the interests of those
       represented by the Creditors Committee;

   (g) assist the Creditors Committee in requesting the
       appointment of a trustee or examiner, should such action be
       necessary; and

   (h) perform such other legal services as may be required and be
       in the interest of the Creditors Committee and creditors.

John k. Sherwood, Esq., a member at Lowenstein Sandler, tells the
Court that the hourly rates for the firm's professionals are:

     Classification/Experience                Hourly Rate
     -------------------------                ------------
     Members (principals) of the Firm         $335 to $645

     Senior Counsel (generally 10 or          $315 to $425
     more years experience)

     Counsel                                  $265 to $375

     Associates (generally less than          $185 to $310
     6 years experience)

     Legal Assistants                          $75 to $175

Mr. Sherwood assures the Court that the Firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code.

Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in  
solutions for entertaining and gift giving.  The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Traub, Bonacquist, & Fox, LLP, represent the Debtor.
When the Debtor filed for bankruptcy, the Debtor estimated its
assets and debts at $10 million to $50 million.


LE GOURMET: Creditors Committee Taps Traxi as Financial Advisors
----------------------------------------------------------------
The Official Committee of Unsecured Creditors of Le Gourmet Chef,
Inc., asks the U.S. Bankruptcy Court for the District of New
Jersey, for the authority to retain Traxi, LLC, as its financial
advisors effective Aug. 16, 2006.

Traxi will:

   (a) review all financial information prepared by the Debtor or
       its consultants as requested by the Creditors Commitee
       including a review of the Debtor's financial statements as
       of the Debtor's filing for chapter protection, showing in
       detail all assets and lisbilities and priority and secured
       creditors;

   (b) monitor the Debtor's activities regarding cash
       expenditures, receivable collections, asset sales and
       projected cash requirements;

   (c) attend required meetings with the Creditors Committee, the
       Debtor, creditors, their attorneys and consultants, federal
       and state authorities;

   (d) review Debtor's periodic operating and cash flow
       statements;

   (e) review Debtor's books and records for related party
       transactions, potential preferences, fraudulent conveyances
       and other potential investigations, prior to the Debtor's
       filing for chapter 11 protection;

   (f) undertake investigation with respect to the acts, conduct,
       property, liabilities and financial condition of the
       Debtor, its management, creditors including the operation
       of its businesses, and avoidance actions, prior to the
       Debtor's filing for chapter 11 protection;

   (g) review any business plan prepared by the Debtor or their
       consultants;

   (h) review and analyze proposed transactions for which the
       Debtor seeks Court approval;

   (i) assist in any sale process of the Debtor collectively or in
       segments, parts or other delineations;

   (j) assist the Creditors Committee in developing, evaluating,
       structuring and negotiating the terms and conditions of all
       potential plans of liquidation;

   (k) provide expert testimony on the results of its findings;

   (l) analyze potential divestitures of the Debtor's operations;

   (m) assist the Creditors Committee in developing alternative
       plans including contacting potential plan sponsors; and

   (n) provide the Creditors Committee with other and further
       financial advisory with respect to the Debtor, including
       valuation, and advice with respect to financial, business
       and economic issues, as may arise during the course of the
       restructuring as requested by the Creditors Committee.

Perry M. Mandarino, a Senior Managing Director and Unit Holder at
Traxi, tells the Court that the Firm will bill:

       Professionals                        Hourly Rate
       -------------                        -----------
       Partners/managing Directors          $450 to $525
       Managers/Directors                   $275 to $425
       Associates/Analyst                   $125 to $275

Mr. Mandarino also tells the Court that the Firm is a
"disinterested person" as the term is defined in Section 101(14)
of the U.S. Bankruptcy Code.

Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc.,
-- http://www.legourmetchef.com/-- is a retailer specializing in     
solutions for entertaining and gift giving.  The Company filed for
bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364).
John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari,
Esq., at Traub, Bonacquist, & Fox, LLP, represent the Debtor.
When the Debtor filed for bankruptcy, the Debtor estimated its
assets and debts at $10 million to $50 million.


LEGACY COMMS: June 30 Balance Sheet Upside-Down by $3.5 Million
---------------------------------------------------------------
Legacy Communications Corp. earned $536,908 of net income on
$860,276 of net revenues for the three months ended June 30, 2006,
compared to a $488,975 net loss on $24,000 of net revenues in
2005.

At June 30, 2006, the Company's balance sheet showed $2.9 million
in total assets and $6.5 million in total liabilities, resulting
in a $3.5 million stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $252,605 in total current assets available to pay $6.5
million in total current liabilities coming due within the next 12
months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1104

                        Going Concern Doubt

As reported in the Troubled Company Reporter on June 16, 2006,
HJ & Associates, LLC, expressed substantial doubt about Legacy
Communications' ability to continue as a going concern after
auditing the Company's 2005 financial statements.  The auditing
firm pointed to the Company's working capital deficit and
stockholders' equity deficit at Dec. 31, 2005.

                 About Legacy Communications Corp.

Headquartered in St. George, Utah, Legacy Communications Corp.
develops, buys, operates and sells radio stations and auxiliary
services.


LEVITZ HOME: Expands Merchandising Team to Revitalize Brand
-----------------------------------------------------------
Levitz Furniture has added two new Vice Presidents and one Buyer
to the company's growing merchandising team.  The Company also
announced that Divisional Merchandise Manager Carol Glaser has
been promoted to Vice President, Merchandising.  The announcements
are part of Levitz Furniture's ongoing commitment to revitalizing
its brand and strengthening its merchandise assortment.

      Joining Levitz Furniture's Merchandising team are:

        * Joanne Jacobs, Vice President, Merchandising, previously
          a Divisional Merchandise Manager for Furniture,
          Lighting, Frames, Wall Art and Home Decor at Bed, Bath
          and Beyond;

        * Patricia Dove, who has been named to the newly created
          position of Vice President, Merchandising and Visual
          Presentation, formerly General Merchandise Manager,
          Divisional Vice President at Linens 'n Things; and

        * Kelly Lobdell, Buyer, Fashion Accessories and Children's
          Bedrooms who was previously a Buyer at Ross Stores.

"The addition of these extremely talented individuals to our
Merchandising team continues the significant progress we've begun
in revitalizing the Levitz Furniture brand," said Tom Baumlin, CEO
of Levitz Furniture.  "This team and their dynamic backgrounds
will play a critical role in helping us deliver the most
compelling merchandise assortment possible to our customers."

In her new position, Ms. Jacobs will be responsible for Occasional
Tables, Office, Walls, Dining and Outdoor Furniture.  Ms. Jacobs
previously held positions with Fortunoff, Lechter's, Associated
Merchandising Corporation, Bath and Body Works, Cost Plus World
Market and Bed, Bath and Beyond.  At Bed, Bath and Beyond, Ms.
Jacobs developed business strategies and seasonal assortments to
maximize sales and profits to generate over $500,000,000 in annual
revenue.

Ms. Dove comes to Levitz Furniture with extensive Home Furnishings
experience.  Ms. Dove previously held buying positions with
Alexander's, M. Fortunoff, Frankel's Home Furnishings and Linens
'n Things.

While at Linens 'n Things, Ms. Dove renewed the emphasis on being
first to market on new product and increased newness to 40% of the
Fall assortments vs. 20% the previous year.  Ms. Dove also
executed a focused key item strategy to drive business while
defining and delivering new core assortments.

In Ms. Glaser's new capacity, she will be responsible for Master
Bedrooms and Living Rooms.  Prior to joining Levitz, Ms. Glaser
served as Buyer, Comforters, Sheets and Decorative Pillows at
Fortunoff where she managed inventory flow, negotiated seasonal
advertising agreements and strategically planned advertising
events, vehicles and promotions.

Ms. Lobdell began her career with Frankel's Home Furnishings,
progressing to Buyer, Bedding and Soft Window Treatments before
leaving in 1999 to join Bed, Bath and Beyond.  There, Ms.
Lobdell's responsibilities included all product development,
inventory control, vendor management, store communications and
implementation guidelines.

Headquartered in Woodbury, New York, Levitz Home Furnishings, Inc.
-- http://www.levitz.com/-- is a leading specialty retailer of    
furniture in the United States with 121 locations in major
metropolitan areas principally the Northeast and on the West Coast
of the United States.  The Company and its 12 affiliates filed for
chapter 11 protection on Oct. 11, 2005 (Bank. S.D.N.Y. Lead Case
No. 05-45189).  David G. Heiman, Esq., and Richard Engman, Esq.,
at Jones Day, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they reported $245 million in assets and $456 million
in debts.  Jay R. Indyke, Esq., at Kronish Lieb Weiner & Hellman
LLP represents the Official Committee of Unsecured Creditors.
Levitz sold substantially all of its assets to Prentice Capital on
Dec. 19, 2005.  (Levitz Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


LEVITZ HOME: Landlords Supplement Objection to Lease Assignment
---------------------------------------------------------------
Landlords opposing the joint request for Levitz Home Furnishings,
Inc. and its debtor-affiliates' assumption and assignment of the
Seaman Leases presented more arguments to support their position.

According to Remy J. Ferrario, Esq., at Golub & Golub, LLP, in New
York, to argue that (i) the Remaining Seaman Leases and the Joint
Agreement can be separated, (ii) the Joint Agreement can rejected
and (iii) the L/C Proceeds can be used to pay Cure Amounts and
other damages -- would be nonsense, would result in an absurd
interpretation of the documents, and would require the Court to
re-write the Joint Agreement, which it cannot do.

Mr. Ferrario argues that the Joint Agreement is not an executory
contract, cannot be assumed or rejected under Section 365(a) of
the Bankruptcy Code, and "rides through" the Chapter 11 cases
unaffected by the filing of the Chapter 11 cases.

The Joint Agreement is the agreement under which the Seaman letter
of credit was established to provide a security deposit for a
number of leases with Seaman Furniture Company, Inc., including
the Remaining Seaman Leases, Mr. Ferrario clarifies.  Provided all
defaults are cured and adequate assurance of performance provided,
any of the Remaining Seaman Leases which may be assumed and
assigned to the Purchaser will be subject to the terms and
conditions of the Joint Agreement which will pass through the
proceedings unaffected by the filing of the Chapter 11 petitions,
Mr. Ferrario adds.

"The Remaining Seaman Leases were modified to extend their terms
and to eliminate the security deposits previously provided for
under the provisions of the Remaining Seaman Leases simultaneously
with the entry by Seaman Furniture into the Joint Agreement which
governs the use of the Seaman L/C as the security deposit under
the Remaining Seaman Leases," Mr. Ferrario says.

Under the Joint Agreement, Mr. Ferrario continues, only the Seaman
Landlords -- MS Elmhurst, LLC, CS Elmhurst, LLC, MS Paramus, LLC,
CLS Diversified, LLC, Sea Plan, LLC and J.J.J.D. Associates,
L.L.C. -- have the right to declare a default and to instruct
their agent to draw on the Seaman L/C to cure the default.

The Landlords have not directed their agent, Leasehold Agency
Associates, Inc., to draw on the Seaman L/C because the Debtors
and PLVTZ, LLC, have moved to assume and assign the Remaining
Seaman Leases to the Purchasers, Mr. Ferrario reasons.

As a condition to assume the Remaining Seaman Leases, Section 365
requires the Debtors and PLVTZ, not the Seaman Landlords, to cure
all existing rent, additional rent, and mechanic lien defaults for
$1,756,394, including the "replenishment amount" and the unpaid
postpetition rent and rent due under the rejected Smithtown Lease.  
Mr. Ferrario notes that the Debtors and PLVTZ failed to cure their
defaults under the Joint Agreement by failing to take the actions
required to replenish the Seaman L/C by either replacing the
Seaman L/C or causing the amount of the Seaman L/C to be increased
by $879,522 back to the Seaman L/C amount of $2,050,000.

Unless the Purchasers have assumed the Joint Agreement as they
assume the Remaining Seaman Leases, the Purchasers are not
entitled to receive any remaining L/C Proceeds, Mr. Ferrario
maintains.  The Seaman L/C Proceeds are not property of the
estate.  The terms of the Sale Order specifically excludes from
the assets purchased by the Purchasers those assets which are not
property of the Debtors' estate.

"Moreover, the return of any portion of the Seaman Proceeds to
Seaman Furniture can only be made within 90 days after the latter
of the expiration date of the last of the Seaman Leases that
remains in the effect the expiration of the term of the Remaining
Seaman Leases," Mr. Ferrario explains.

The Landlords and the Agent, hence, ask the Court to:

     *  condition any assumption and assignment of the Remaining
        Seaman Leases on the Debtors' and PLVTZ's immediate
        payment of the $1,756,394 full cure amount, which includes
        the $879,522 Replenishment Amount;

      * hold that the Joint Agreement:

        -- is not an executory agreement; and

        -- rides through the Chapter 11 cases unaffected by the
           filing of the bankruptcy cases;

      * deny the assumption or rejection of the Joint Agreement;

      * find that the Joint Agreement is not ambiguous and not re-
        write the Joint Agreement to authorize the use of L/C
        Proceeds, or any draw on the Seaman L/C, to pay any
        portion of any cure which must be paid in connection with
        the assumption of the Remaining Seaman Leases or for any
        purpose not specifically authorized by the terms of the
        Joint Agreement;

      * prevent the turnover of any remaining L/C Proceeds to the
        Purchasers; and

      * grant them their reasonable legal costs and expenses.

Headquartered in Woodbury, New York, Levitz Home Furnishings, Inc.
-- http://www.levitz.com/-- is a leading specialty retailer of    
furniture in the United States with 121 locations in major
metropolitan areas principally the Northeast and on the West Coast
of the United States.  The Company and its 12 affiliates filed for
chapter 11 protection on Oct. 11, 2005 (Bank. S.D.N.Y. Lead Case
No. 05-45189).  David G. Heiman, Esq., and Richard Engman, Esq.,
at Jones Day, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they reported $245 million in assets and $456 million
in debts.  Jay R. Indyke, Esq., at Kronish Lieb Weiner & Hellman
LLP represents the Official Committee of Unsecured Creditors.
Levitz sold substantially all of its assets to Prentice Capital on
Dec. 19, 2005.  (Levitz Bankruptcy News, Issue No. 19; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000)


MED DIVERSIFIED: 2nd Cir. Subordinates Ex-Employee's Stock Claim
----------------------------------------------------------------
Addressing an issue of apparent first impression, the United
States Court of Appeals for the Second Circuit holds that the
scope of 11 U.S.C. Sec. 510(b) -- the Bankruptcy Code's
subordination provision -- requires a former executive employee's
claim against Med Diversified, Inc., based on the debtor's failure
to issue its common stock to the employee in exchange for his
stock in another company, allegedly in violation of the parties'
termination agreement, was a claim "arising from" the purchase of
the debtor's stock, within the meaning and purpose of Sec. 510(b).  

In its decision published at 2006 WL 2458760, the Second Circuit
says the employee took on the risk and return expectations of a
shareholder when he agreed to exchange his securities in the other
company and his employment claims for the shares of the debtor,
regardless of the fact that the employee never received the shares
he was due by the agreed-upon date.  Other federal appellate court
decisions, as well as the holdings of most prominent decisions of
local bankruptcy courts, supported a broad interpretation of Sec.
510(b).

Headquartered in Handover, Massachusetts, Med Diversified, Inc.
-- http://www.meddiversified.com/-- operates companies in various  
segments in the health care industry, including pharmacy, home
infusion, multi- media, management, clinical respiratory services,
home medical equipment, home health services and other functions.  
The Company and its affiliates filed for bankruptcy protection on
November 27, 2002 (Bankr. E.D.N.Y. Case No. 02-88564).  Toni Marie
McPhillips, Esq., at Duane Morris LLP, represents the Debtors.  
When the Debtors filed for chapter 11 protection, they listed
total assets of $196,323,000 and total debts of $143,005,000.


MEDAREX INC: Gets Default Notice Due to Late Form 10-Q Filing
-------------------------------------------------------------
Medarex, Inc. reported that on Aug. 25, 2006, it received a notice
of default from Citadel Equity Fund Ltd. relating to its 2.25%
Convertible Senior Notes in the aggregate principal amount of
$150 million due May 15, 2011.  

Citadel, a reported holder of more than 25% in principal amount of
the outstanding Notes, provided the notice of default under the
Indenture governing the Notes and cites Medarex's failure to file
its Quarterly Report on Form 10-Q for the quarter ended June 30,
2006, as the basis for the notice of default.  

The notice of default further provides that if Medarex does not
file its Form 10-Q by Oct. 24, 2006, an event of default under the
Indenture will exist.

Under the terms of the Indenture, Medarex has 60 days after such a
notice of default has been given to cure any such default.  If an
event of default shall be deemed to have occurred, Medarex intends
to use its best efforts to cure any such default within the
required cure period.  If such an event of default occurs and is
continuing, the Trustee for the Notes or the holders of not less
than 25% in principal amount of the Notes may declare the
principal of all the Notes to be due and payable immediately.

As of June 30, 2006, Medarex held approximately $424.4 million in
cash, cash equivalents, marketable securities and segregated cash
(approximately $19.5 million of which relates to Celldex
Therapeutics, Inc., a majority-owned subsidiary), and the Notes
currently have an aggregate outstanding principal amount of
$150 million.  Medarex believes that after any required repayment
of the Notes, its existing resources will be adequate to fund its
currently planned working capital requirements for both the short
and long term.

As previously reported, the Board of Directors of Medarex has
appointed one of its outside directors to oversee an investigation
of its historical stock option practices and related accounting
treatment.  The outside director has not completed the work or
reached final conclusions and is continuing the investigation.  
Accordingly, Medarex was not able to file its Form 10-Q on the
prescribed filing date and will not be able to file its Form 10-Q
until the investigation has been completed.  Medarex also
previously announced that it will restate its annual financial
statements for the periods from 2000 through 2005 and its interim
financial statement for the quarter ended March 31, 2006.

Headquartered in Princeton, New Jersey, Medarex Inc. (Nasdaq:
MEDX) -- http://www.medarex.com/-- is a biopharmaceutical company  
focused on the discovery, development and potential
commercialization of fully human antibody-based therapeutics to
treat life-threatening and debilitating diseases, including
cancer, inflammation, autoimmune disorders and infectious
diseases.


METALDYNE CORP: Consents to $2 Billion Asahi Tec Acquisition
------------------------------------------------------------
Metaldyne Corporation has agreed to be acquired by Asahi Tec
Corporation, a Shizuoka, Japan-based chassis and powertrain
component supplier in the passenger car/light truck and
medium/heavy truck segments.

The total value of the transaction, which has been approved by
both the Asahi Tec and Metaldyne Boards of Directors, will be
approximately $1.2 billion, including Metaldyne's debt.  The
transaction is targeted to be completed in the fourth quarter of
2006.

The deal has been negotiated with the full support of Asahi Tec's
major investor RHJ International.  RHJI is a diversified holding
company focused on creating long-term value for its shareholders
and building on its existing businesses in Japan and elsewhere.

"Our customers are expanding their operations globally,
increasingly outsourcing higher, value added manufacturing
processes and developing strategies that address these changes,"
said Tim Leuliette, Metaldyne chairman, president and CEO. "One of
the most dramatic changes is where vehicles will be developed in
the future.  According to CSM Worldwide, by 2012, half of all
vehicle development worldwide is expected to be done in the Asia
Pacific region.  Suppliers that will be successful and competitive
in the future must be ready to rapidly respond to customers as
they execute these changes."

Acquiring Metaldyne will expand Asahi Tec's geographic footprint
and product portfolio and create a powerful global automotive
supplier of highly engineered, precision modules and components
for powertrain and chassis that can better serve its global
customers on a local basis.

Asahi Tec has a significant presence in Japan, with additional
operations in Thailand and China.  Metaldyne has significant
operations in North America, Europe, Korea and China and is
growing in India and Brazil.  After the transaction, both
companies will be well positioned to benefit from growth in
emerging markets in Asia as well as the success of transplants in
North America and Europe.

"This acquisition will increase Asahi Tec's customer base,
geographic footprint and product portfolio," said Shoichiro
Irimajiri, chairman of Asahi Tec.  "We will be able to bring new
products and services to market more rapidly and more efficiently
thanks to the increased scale of Metaldyne's operations and a
strong and widely recognized management team."

The transaction offers both companies synergies.  Specifically, it
is expected to:

     -- Expand the global footprint and customer base;

     -- Create a strong, experienced combined Asahi Tec and
        Metaldyne management team;

     -- Enhance engineering capabilities and technology leadership
        in powertrain and chassis;  

     -- Expand R&D capabilities;

     -- Broaden manufacturing capabilities, including aluminum
        castings, ductile iron castings, powdered metals and
        precision machining;  

     -- Strengthen the product portfolio;

     -- Reduce costs through joint procurement;

     -- Improve facility utilization; and  

     -- Expand the market opportunity for light vehicles
        (Metaldyne) and heavy trucks (Asahi Tec).

"Metaldyne and Asahi Tec have come together to create a stronger,
more globally competitive company," said Mr. Leuliette.  "All our
customers, employees and investors are better served by a
stronger, better capitalized, more globally capable company."

In addition, Metaldyne will continue to operate independently and
will keep its name.  Mr. Leuliette will continue to oversee day-
to-day operations as chairman and CEO of Metaldyne.

Under the new organizational structure Mr. Leuliette and Mr.
Irimajiri will serve as co chairmen of Asahi Tec.  Mr. Irimajiri
also will be chief technical officer.  Leuliette will focus on
operations and also hold the position of co-CEO, which he will
share with Akira Nakamura, who continues his role as president of
Asahi Tec.  Mr. Leuliette also will become an industrial partner
in RHJI.

                         Transaction Details

The transaction will be effected through a cash out merger in
which Metaldyne will become a wholly owned subsidiary of Asahi
Tec.  Holders of 97% of Metaldyne's common stock will receive
$2.18 for each share of Metaldyne's common stock.  The balance of
the common stockholders will receive at least $2.40 for each share
of Metaldyne common stock, and may receive a higher price if Asahi
Tec's average stock price increases over a specified period prior
to closing.

Holders of 97% of Metaldyne's common stock and certain of its
preferred stockholders have agreed to reinvest their proceeds in a
private placement of Asahi Tec common stock.  The remaining
Metaldyne preferred stockholders are reinvesting their proceeds in
Asahi Tec convertible preferred stock to be issued in a private
placement.

RHJI and co-investors, Mitsui & Co. Ltd. and CHUO MITSUI Growth
Capital Investment Limited Partnership II, have agreed to invest
$188 million in Asahi Tec, between $150 million and $175 million
of which will be contributed to Metaldyne for debt reduction.  
RHJI will remain the largest stockholder of Asahi Tec.

Metaldyne's Board of Directors declared a distribution of all the
common stock and common stock equivalents of TriMas Corporation
that are currently owned by Metaldyne to Metaldyne's common
stockholders of record on the business day prior to the merger.  
This distribution is conditioned upon, among other things, the
occurrence of the merger and the receipt of certain consents and
approvals.
Closing of
the merger is subject to customary conditions, including U.S. and
Japanese regulatory approvals, the closing of the private
placement to Metaldyne's reinvesting stockholders and stockholder
approvals at Asahi Tec and Metaldyne.  The merger has already been
approved by the holders of a majority of Metaldyne's common stock
and its preferred stockholders.

In addition, the closing of the merger is subject to the
refinancing of Metaldyne's senior bank debt, the receipt of
certain consents and waivers from Metaldyne's bondholders and the
completion of a tender for a minimum of $225 million aggregate
principal amount of Metaldyne's 11% senior subordinated notes due
2012 and 10% senior subordinated notes due 2014 at a tender price
reflecting the price of the 11% notes during the recent pre-
announcement period.

All $31.7 million in outstanding principal amount of the 10%
senior subordinated notes are currently held by DaimlerChrysler
Corporation.  A condition of the tender offer also includes
seeking a waiver of the bonds' change of control provisions.  The
notes that remain outstanding after completion of the tender and
consents will not benefit from any new guarantees or other credit
support from Asahi Tec or any of its current subsidiaries.

Further, Asahi Tec may elect not to close if Metaldyne's rating
for senior term debt is lowered below certain levels and its
interest cost for that debt exceeds certain levels.

Metaldyne was advised by Lazard Freres & Co. on this transaction.
Asahi Tec was advised by Deutsche Bank Securities Inc.,
NikkoCitigroup Ltd. and Mizuho Corporate Advisory Co., Ltd.

                          About Asahi Tec

Headquartered in Shizuoka, Japan, Asahi Tec --
http://www.asahitec.co.jp/-- primarily designs, manufactures and  
sells ductile iron cast auto parts for truck and construction
machinery OEMs, aluminum casting parts for truck and passenger car
OEMs and aluminum wheels for automobile OEMs.  Asahi Tec also
designs, manufactures and sells environmental systems, equipment
and development technologies used by local governments and
municipalities and electrical hardware and equipment used by
electricity generators. The company employs more than
3,500 employees at facilities in Japan, Thailand and China.


                      About RHJ International

RHJ International is a limited liability company organized under
the laws of Belgium.  It is a diversified holding company focused
on creating long-term value for its shareholders by acquiring and
operating businesses in attractive industries in Japan and
elsewhere.

                         About Metaldyne

Headquartered in Plymouth, Mich., Metaldyne Corp --
http://www.metaldyne.com/-- is a leading global designer and  
supplier of metal-based components, assemblies and modules for
transportation related powertrain and chassis applications
including engine, transmission/transfer case, wheel end and
suspension, axle and driveline, and noise and vibration control
products to the motor vehicle industry.


METALDYNE CORP: Asahi Purchase Cues Moody's to Review Ratings
-------------------------------------------------------------
Moody's Investors Service placed the ratings of Metaldyne
Corporation and its wholly owned subsidiary Metaldyne Company LLC
under review for possible upgrade.  The review is prompted by
Metaldyne's announcement that it has signed a definitive agreement
to be purchased by Asahi Tec Corp. in a transaction valued at
approximately $1.2 billion.

Asahi Tec designs, manufactures and sells iron cast auto parts for
truck and construction machinery OEMs as well as aluminum casting
parts and aluminum wheels for truck and automotive OEMs.  Asahi
Tec's revenues for the fiscal year ended March 31, 2006 were
approximately 58 billion Yen. Asahi Tec is approximately 63% owned
by RHJ International, a New York buyout firm.

The ratings under review for possible upgrade are:

Metaldyne Corporation:

   * Corporate Family Rating, Caa1;

   * $150 million of 10% guaranteed senior unsecured notes due
     November 2013, Caa2;

   * $250 million of 11% guaranteed senior subordinated notes due
     June 2012, Caa3;

Metaldyne Company LLC:

   * B3 rating for Metaldyne LLC's guaranteed senior secured
     credit facilities, consisting of:

   * $400 million guaranteed senior secured tranche D term loans
     due December 2009;

   * $50 million guaranteed senior secured revolving credit
     facility due August 2011;

   * $150 million Synthetic L/C Facility due August 2011;

The last rating action was on August 14, 2006 when the ratings
were lowered.

Moody's review will consider the financial benefits and strategic
business opportunities which could come to Metaldyne under a
business combination with Asahi Tec.  During August 2006, Moody's
downgraded Metaldyne's ratings reflecting concerns about the
company's weak financial performance and a continuing challenging
business environment for auto part suppliers.  Initial statements
indicate that the proposed transaction will involve a $300 million
debt reduction by Metaldyne and a refinancing of the company's
bank credit facility.

These actions could improve Metaldyne's financial metrics and
available liquidity, giving it more flexibility to address the
challenging business environment. Moreover, the combination with
Asahi Tec could offer new business opportunities for Metadyne with
non-US auto makers.  The review will consider any change in the
capital structure of Metaldyne and the resulting impact on the
company's financial metrics and liquidity profile.  The review
will also consider the effects of the current adverse business
environment in the auto components sector on Metaldyne's earnings
and cash flow, and the strategies the business combination would
pursue to enhance performance and reduce
debt.

Moody's noted that the transaction is subject to certain
conditions including the successful tender of a portion of the
company's existing public debt and the granting of waivers
for the change of control language in the bond indentures.  
Consequently, the review will also consider the degree to which
the level of asset coverage and indenture protections afforded
to public debt holders are maintained.

Metaldyne Corporation, headquartered in Plymouth, Michigan, is a
manufacturer of highly engineered products for the global light
vehicle market.  Metaldyne designs, engineers and assembles metal-
formed and engineered products used in transmissions, engines and
chassis of vehicles.  The company's annual revenues currently
approximate $1.9 billion.  Ownership of Metaldyne is controlled by
private equity sponsor Heartland Industrial Partners LP.


METALDYNE CORP: S&P Holds B Corporate Credit Rating on Watch
------------------------------------------------------------
Standard & Poor's Ratings Services' 'B' corporate credit rating
and other ratings on Metaldyne Corp. remained on CreditWatch, but
the implications have been revised to developing from negative
following the company's announcement that it has agreed to be
acquired by unrated Asahi Tec Corp.

Developing implications mean that the ratings could be lowered,
raised, or affirmed following our review of the terms of the
proposed transaction.  The Plymouth, Michigan-based auto supplier
has total debt of about $860 million.

The boards of both Metaldyne and Asahi Tec have approved the $1.2
billion transaction, which includes Metaldyne's debt.  Metaldyne
will become a wholly-owned subsidiary of Asahi Tec through a cash-
out merger, but will continue to operate independently.

Metaldyne's stockholders will receive cash for their shares, but
have agreed to reinvest the proceeds in a private placement of
Asahi Tec common and preferred stock.  

Asahi Tec's major investor, RHJ International, along with two co-
investors, will invest $188 million in Asahi Tec, with $150
million - $175 million targeted for debt reduction at Metaldyne.

The acquisition is subject to the refinancing of:

   * Metaldyne's senior bank debt;
   * the receipt of consents and waivers from its bondholders; and
   * the completion of a tender for a portion of its public bonds.

"If completed as planned, the transaction will improve Metaldyne's
credit metrics, but they will remain weak.  The company will
continue to have a heavy debt load and suffer from weak earnings
and cash flow resulting from the tough business conditions facing
U.S. automotive suppliers, including customer production cuts,
pricing pressure, intense competition, and raw material cost
exposure," said Standard & Poor's credit analyst Robert Schulz.

Asahi Tec will not guarantee or provide other credit support for
Metaldyne's debt.

Potential benefits from the combination include:

   * an expanded global footprint and customer base;

   * engineering and technology sharing opportunities;

   * a broader product portfolio; and

   * potential cost savings through joint procurement and improved
     facility utilization.

But the combination could be challenged by integration issues
resulting from the unique corporate cultures of the two companies,
and the fallout from the ongoing business challenges facing
Metaldyne's mostly U.S.-based customers.


METSO PAPER: Completes Purchase of Paper Machine Maker in China
---------------------------------------------------------------
Metso Paper has received relevant regulatory approvals from the
Chinese authorities for the acquisition of Shanghai-Chenming Paper
Machinery Co. Ltd agreed in February 2006.  The entire share
capital of the company was transferred to Metso as of Aug. 31,
2006.  The debt-free purchase price and the investments related to
the development of the unit total about EUR35 million.  The
company was previously owned by Shandong Chenming and Shanghai
Heavy Machinery.

The acquired company, operating from now on under the name of
Metso Paper Technology (Shanghai) Co. Ltd., comprises a workshop,
a foundry and a design department.  The unit is located in the
Shanghai area in Jiading and it employs around 550 people.  The
unit will mainly concentrate on manufacturing paper and board
machine sections for Metso Paper's delivery projects in China.  
However, the plant already has the capability to manufacture a
major part of a conventional linerboard machine for the Chinese
market.  The unit can also supply some components for projects
outside of China, which will strengthen Metso's global sourcing.

The Shanghai unit will further strengthen Metso Paper's
capabilities to serve the fast growing Chinese paper industry and
will simultaneously open new opportunities to serve also markets
outside of China.

Metso Paper also has a joint venture company, Valmet-Xian
Machinery Co. Ltd. in China.  Valmet-Xian employs approximately
1,110 people and focuses on small and medium size paper and board
machines.  Metso owns 48.3% of the joint venture.

Headquartered in Helsinki, Finland, Metso Corporation --
http://www.metso.com/-- is a global engineering and technology
corporation with 2005 net sales of approximately EUR4.2 billion.
Its 22,000 employees in more than 50 countries serve customers
in the pulp and paper industry, rock and minerals processing,
the energy industry and selected other industries.

The Company's 5-1/8% Senior Notes due 2009 carry Moody's Investors
Service's Ba1 rating and Standard & Poor's BB rating.


MHARAS CORP: Case Summary & Largest Unsecured Creditor
------------------------------------------------------
Debtor: Mharas Corporation
        2001 Murphy Drive
        Bedford, TX 76021

Bankruptcy Case No.: 06-42851

Chapter 11 Petition Date: September 1, 2006

Court: Northern District of Texas (Fort Worth)

Judge: D. Michael Lynn

Debtor's Counsel: Areya Holder Pronske, Esq.
                  Areya Holder Pronske, P.C.
                  800 West Airport Freeway, Suite 540
                  Irving, TX 75062
                  Tel: (972) 438-8800
                  Fax: (972) 438-8825

Total Assets: $2,908,180

Total Debts:  $2,350,000

Debtor's Largest Unsecured Creditor:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
AM & AM Corporation           Purchase Money            $450,000
14335 Haymeadow Circle
Dallas, TX 76524


MILLENIUM ASSISTED: Amended Disclosure Statement Gets Interim Okay
------------------------------------------------------------------
The Honorable Raymond T. Lyons of the U.S. Bankruptcy Court for
the District of New Jersey approved, on a conditional basis, the
amended disclosure statement explaining Millenium Assisted Living
Residence at Freehold LLC's first amended Chapter 11 Plan of
Orderly Liquidation.

The Court set Oct. 5, 2006, as the last day for interested parties
to:

   -- file objections to the Disclosure Statement and confirmation
      of the Plan; and

   -- file written acceptances or rejections of the Plan.

A hearing to consider final approval of the Disclosure Statement
will be on Oct. 12, 2006.

As reported in the Troubled Company Reporter on Sept. 1, 2006,
distributions under the Debtor's Amended Plan will be funded by
proceeds remaining from the sale of the Debtor's assets on
Nov. 10, 2005 and by net preference recoveries from the Debtor's
prosecution of avoidance actions.

The Debtor's existing cash -- less $50,000 reserved for general
unsecured claims -- will be paid to professionals retained in the
Debtor's case.

Under the Amended Plan, holders of General Unsecured Claims will
receive pro rata payments of their allowed amounts from the
$50,000 cash reserve.

The interests of the Debtor's equity interest will be extinguished
on confirmation of the Amended Plan.

Ravin Greenberg PC will serve as disbursing agent for the  
distributions contemplated under the Plan.

A full-text copy of the first amended disclosure statement on the
Debtor's first amended chapter 11 liquidation plan is available
for a fee at:

  http://www.researcharchives.com/bin/download?id=060831201939  

Headquartered in Freehold, New Jersey, Millenium Assisted Living
Residence at Freehold, LLC, filed for chapter 11 protection on
June 7, 2004 (Bankr. N.J. Case No. 04-29097).  Chad Brian
Friedman, Esq., and Howard S. Greenberg, Esq., at Ravin Greenberg
PC represent the Debtor in its restructuring efforts.  Scott
Cargill, Esq., at Lowenstein & Sandler PC represents the Official
Committee of Unsecured Creditors.  When the Company filed for
protection from its creditors, it estimated over $10 million in
debts and assets.


MILLENIUM BIOLOGIX: Provides Details on Proposed Financing
----------------------------------------------------------
Millenium Biologix Corporation has received a demand loan in the
amount of $500,000 from BML Capital I, LLP. Both BML Capital and
its affiliate, BML International Maple Leaf Fund I Inc. are
existing shareholders of the Company.

BML Capital has agreed to convert the demand loan into a longer
term financing which will be in the form of convertible
debentures.  

The Company has also received a commitment for a further $500,000
investment in Debentures from a second existing shareholder, New
Generation Biotech Equity Fund.

The Company is continuing its efforts to obtain commitments from
other investors for up to an additional $2 million of Debentures.
These efforts, together with other initiatives being pursued by
the Company, are intended to provide it with further financial
resources to continue to develop its core technologies and more
time to attempt to address its longer term financial needs.

The Debentures would mature and become due and payable on the
second anniversary of closing.  The Debentures would carry an
interest rate of 25% per annum payable in cash or common shares
(at a rate of $0.03 per common share) at the option of the Company
semiannually on June 30 and December 31 in each year until
maturity.

The Debentures would convert into common shares of the Company at
the option of the holder at any time prior to the maturity date at
a price per share of $0.03.  Conversion would be mandatory in the
event the Company completes a financing with gross proceeds in
excess of $5 million.

An investor in Debentures would also receive warrants equal to the
quotient obtained by dividing the aggregate principal amount of
Debentures subscribed for by the conversion price, and each
entitling the holder to purchase one common share of the Company
at a price per common share equal to the 10-day volume weighted
average price of the Company's common shares on the Toronto Stock
Exchange immediately preceding closing for a period of three years
from closing.

"The willingness of two of our existing investors to provide
financing is a testament to the inherent value and long-term
potential of our core technologies," said Brian Fielding,
President CEO of Millenium Biologix.  "In addition to providing us
with the necessary capital to continue advancing our programs,
this demand loan and commitment provide us with the means and
flexibility to address our longer term financial needs."

                 TSX Financial Hardship Exemption

BML Capital subscribed for approximately $500,000 of the
Debentures; BML currently holds 20,000,000 or 15.2% of the
outstanding common shares of the Company.  One member of the
Company's Board currently represents BML.

An additional $500,000 of the Debentures have been subscribed for
by New Gen, which currently holds 27,816,909 or 21.2% of the
outstanding common shares of the Company.  New Gen currently does
not have any representative on the Company's Board.

Although the nature of the two financing transactions would
normally trigger security holder approval under the rules of the
Toronto Stock Exchange, the Company intends to rely on an
exemption from the security holder approval requirements of the
TSX Company Manual on the basis of its serious financial
difficulty.

A special committee of independent directors of the Company has
considered the transactions.  On the basis of the recommendations
of the Special Committee, the board of directors of the Company
has determined that the Company is in serious financial
difficulty, that the transactions are designed to improve the
Company's financial situation and are reasonable in the
circumstances of the Company, and has authorized the Company to
make the application to the TSX.

                     About Millenium Biologix

Headquartered in Ontario, Canada, Millenium Biologix Corporation
(TSX: MBC) -- http://www.millenium-biologix.com/-- is focused on  
the development and commercialization of next generation cell
culture and tissue engineering systems that will drive change from
synthetic implants to more effective biologics-based solutions.

                           *     *     *

As of April 30, 2006, the Company had cash of $3.2 million.  The
Company continues to review various strategic options, including
seeking investors for a private placement financing to obtain the
resources necessary to continue execution of the business plan.  
The implementation of the Company's strategy is dependent on
successfully securing these necessary resources in the very near
term.  In the event the Company is unable to raise financing
within the next two months, there is substantial doubt as to the
Company's ability to continue as a going concern, which could
require the partial or complete divestiture of one or more of its
core technologies.


MIRANT CORP: Americas Energy Unit Resolving Bonneville Dispute
--------------------------------------------------------------
Mirant Americas Energy Marketing, LP, and the Bonneville Power
Administration are parties to three interrelated agreements:

    (1) a Western Systems Power Pool Agreement;

    (2) an Agreement to Enable Future Purchases, Sales and
        Exchanges of Power and Other Services; and

    (3) a Confirmation Agreement.

In 2003, the BPA asked MAEM to provide it $1,647,000 as adequate
assurance of its ability to perform under the Confirmation
Agreement.  MAEM objected to the amount but wire transferred
$523,389 as adequate assurance.

Because of MAEM's Chapter 11 filing, the BPA, in a letter,
terminated all its transactions with the Debtor under the
Enabling Agreement and the Confirmation Agreement.  The BPA:

    * assessed a termination payment against MAEM totaling
      $1,085,040;

    * withheld the payment of $552,014 that the BPA owed to MAEM
      for certain energy purchases; and

    * requested MAEM to pay $533,026 as the net amount of the
      Termination Payment.

The BPA told MAEM that it would release the $523,389 adequate
assurance if the Debtor will pay the net amount of the
Termination Payment.

The BPA subsequently withdrew the termination letter pursuant to
a Court order.  The BPA also reinstated the Confirmation
Agreement and returned the $552,014 withheld payment.

Pursuant to the Plan of Reorganization, MAEM's assets, rights and
claims against the BPA were transferred to Mirant Energy Trading,
LLC.

MET demanded the BPA to pay:

    * $632,088 on account of the adequate assurance plus interest;
    * $44,624 as interest on the $552,014 withheld payment; and
    * $274,466 for attorney's fees.

The BPA returned the $523,389 adequate assurance but did not
concede as to the payment of interest and attorney's fees.

Subsequently, the parties agreed to settle.  Pursuant to a Court-
approved stipulation, the BPA will pay MET:

    (a) $114,771 as interest on the adequate assurance amount; and
    (b) $10,400 as interest on the $552,014 withheld payment.

                           About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR)
-- http://www.mirant.com/-- is an energy company that produces
and sells electricity in North America, the Caribbean, and the
Philippines.  Mirant owns or leases more than 18,000 megawatts of
electric generating capacity globally.  Mirant Corporation filed
for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-
46590), and emerged under the terms of a confirmed Second Amended
Plan on Jan. 3, 2006.  Thomas E. Lauria, Esq., at White & Case
LLP, represented the Debtors in their successful restructuring.
When the Debtors filed for protection from their creditors, they
listed $20,574,000,000 in assets and $11,401,000,000 in debts.
The Debtors emerged from bankruptcy on Jan. 3, 2006.  (Mirant
Bankruptcy News, Issue No. 104; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                           *     *     *

As reported in the Troubled Company Reporter on July 17, 2006,
Moody's Investors Service downgraded the ratings of Mirant
Corporation and its subsidiaries Mirant North America, LLC and
Mirant Americas Generation, LLC.  The Ba2 rating for Mirant Mid-
Atlantic, LLC's secured pass through trust certificates was
affirmed.  The rating outlook is stable for Mirant, MNA, MAG, and
MIRMA.

Moody's downgraded Mirant Americas Generation, LLC's Senior
Unsecured Regular Bond/Debenture, to B3 from B2.  Moody's also
downgraded Mirant Corporation's Corporate Family Rating, to B2
from B1, and Speculative Grade Liquidity Rating, to SGL-2 from
SGL-1.  Mirant North America, LLC's Senior Secured Bank Credit
Facility, was also downgraded to B1 from Ba3 and its Senior
Unsecured Regular Bond/Debenture, to B2 from B1.

As reported in the Troubled Company Reporter on July 13, 2006,
Fitch Ratings placed the ratings of Mirant Corp., including the
Issuer Default Rating of 'B+', and its subsidiaries on Rating
Watch Negative following its announced plans to buy back stock and
sell its Philippine and Caribbean assets.

Ratings affected are Mirant Corp.'s 'B+' Issuer Default Rating and
Mirant Mid-Atlantic LLC's 'B+' Issuer Default Rating and the Pass-
through certificates' 'BB+/Recovery Rating RR1'.

Fitch also placed Mirant North America, Inc.'s Issuer Default
Rating of 'B+', Senior secured bank debt's 'BB/RR1' rating, Senior
secured term loan's 'BB/RR1' rating, and Senior unsecured notes'
'BB-/RR1' rating on Rating Watch Negative.  Mirant Americas
Generation, LLC's Issuer Default Rating of 'B+' and Senior
unsecured notes' 'B/RR5' rating was included as well.

Standard & Poor's Ratings Services also placed the 'B+' corporate
credit ratings on Mirant Corp. and its subsidiaries, Mirant North
American LLC, Mirant Americas Generating LLC, and Mirant Mid-
Atlantic LLC, on CreditWatch with negative implications.


NBC/AUSTIN: U.S. Trustee Wants Cases Dismissed or Converted
-----------------------------------------------------------
Charles F. McVay, the U.S. Trustee for Region 7, asks the
Honorable Marvin Isgur of the U.S. Bankruptcy Court for the
Southern District of Texas in Houston for the dismissal,
conversion to chapter 7 proceedings, or appointment of a Chapter
11 Trustee in NBC/Austin Windridge, Ltd., and NBC Las Brisas,
Ltd.'s Chapter 11 cases.

Austin Windridge and Las Brisas are each single-asset real estate
debtors, each owning one apartment complex cross-collateralized to
KeyBank National Association.  The Windridge Apartment complex is
an operating complex that is 85% occupied in Austin, Texas.  The
Las Brisas Apartment complex is a non-operating complex in Port
Neches, Texas, due to damage sustained by Hurricane Rita.

The U.S. Trustee said the Debtors filed voluntary petitions on
May 2, 2006, to avoid foreclosure on the properties.

The U.S. Trustee said that:

   -- failing to insure the property of these estates as required
      by the U.S. Trustee, by the terms of the security agreement,
      and by common sense for the protection of the Debtors'
      assets for the benefit of creditors, the Debtors have
      violated Sections 1112(A), (B), and (C) of the U.S.
      Bankruptcy Code.  That failure is cause for dismissal,
      conversion, or appointment of a Chapter 11 Trustee;

   -- providing false insurance documentation to the U.S.
      Trustee is cause for dismissal, conversion, or appointment
      of a  Chapter 11 Trustee; and

   -- failing to file monthly operating reports, failing to pay
      quarterly fees to the U.S. Trustee, and failing to timely
      file and diligently prosecute the filing of documents
      required by the Bankruptcy Code are causes for dismissal
      under Sections 1112(F) and (K) and Bankruptcy Local Rule
      1017(a)(7) for "want of prosecution."

Judge Isgur will convene a hearing at 1:30 p.m. on Sept. 13, 2006,
to consider the U.S. Trustee's request.

Nancy L. Holley, Esq., represents the U.S. Trustee.

Headquartered in Houston, Texas, NBC/Austin Windridge, Ltd., and
its debtor-affiliate, NBC Las Brisas, Ltd., filed for chapter 11
protection on May 2, 2006 (Bankr. S.D. Tex. Case Nos. 06-31901 &
06-80154).  Richard L. Fuqua, II, Esq., at Fuqua & Keim, LLP,
represents the Debtors.  No Official Committee of Unsecured
Creditors has been appointed in the Debtor's case.  When the
Debtors filed for protection from their creditors, they estimated
assets and debts between $10 million and $50 million


NBC/AUSTIN WINDRIDGE: Court Okays Capstone as Management Company
----------------------------------------------------------------
The Honorable Marvin Isgur of the U.S. Bankruptcy Court for the
Southern District of Texas in Houston authorized NBC/Austin
Windridge, Ltd., and NBC Las Brisas, Ltd., to employ Capstone Real
Estate Service, Inc., as their Management Company, pursuant to
Section 327 of the Bankruptcy Code.

As reported in the Troubled Company Reporter on July 20, 2006,
Capstone will assist the Debtors in the accounting and management
functions required under their bankruptcy cases.

The Debtors will employ Capstone on the fee basis set out in
Schedule A of the Management Agreement currently in place between
them.  The Debtor did not submit a copy of the Management
Agreement to the Court.

To the best of Debtors' knowledge, Capstone holds no interest
adverse to their estates.

Headquartered in Houston, Texas, NBC/Austin Windridge, Ltd., and
its debtor-affiliate, NBC Las Brisas, Ltd., filed for chapter 11
protection on May 2, 2006 (Bankr. S.D. Tex. Case Nos. 06-31901 &
06-80154).  Richard L. Fuqua, II, Esq., at Fuqua & Keim, LLP,
represents the Debtors.  No Official Committee of Unsecured
Creditors has been appointed in the Debtor's case.  When the
Debtors filed for protection from their creditors, they estimated
assets and debts between $10 million and $50 million


NBO SYSTEMS: Balance Sheet Upside-Down by $11.68MM at June 30
-------------------------------------------------------------
NBO Systems, Inc., incurred a $1,708,780 net loss on $2,154,921 of
revenues during the quarter ending June 30, 2006, the Company
disclosed on a Form 10-QSB report filed with the Securities and
Exchange Commission.  

As of June 30, 2006, the Company's balance sheet showed $6,523,248
in assets and $18,203,342 in liabilities, all of which are
current.  $6,004,088 of the Company's assets is current.

The Company's equity deficit widened to $11,680,094 as of
June 30, 2006, from a $9,500,088 deficit at Dec. 31, 2005.

Christopher Foley, the Company's Chief Financial Officer,
disclosed that the Company's operating activities have used cash
rather than provided cash.  The Company has had a history of
losses and the Company's accumulated deficit (since inception June
23, 1994 through June 30, 2006) was approximately $43.2 million.  
During the six months ended June 30, 2006, the Company utilized
approximately $3.7 million in cash from operating activities.  At
June 30, 2006, the Company had a deficit in working capital of
approximately $12.2 million.  The Company's ability to meet its
obligations as they come due is dependent upon obtaining
additional financing, as may be required and ultimately attaining
sustained profitability, Mr. Foley said.

According to Mr. Foley, the Company continues to attempt to raise
capital through private equity or debt offerings, as well as
institutional investors until its operations provide sufficient
cash to meet its needs.
   
The Company also Defaulted on a note to a stockholder whereby
warrants to purchase 30,000 shares of common stock at $2.50 were
issued, resulting in deferred financing costs of $9,846.

A full-text copy of the Company's regulatory filing is available
for free at http://ResearchArchives.com/t/s?110d

                        Going Concern Doubt

Tanner LC recurring losses, has a working capital deficit of
$10,323,825 and an accumulated deficit of $40,148,750 as of
December 31, 2005, and had negative cash flows from operating
activities of $1,792,008 for the year ended December 31, 2005.

                         About NBO Systems

NBO Systems, Inc. -- http://www.nbo.com/-- develops and markets  
prepaid stored-value card programs that operate on the established
payment systems operated by Visa and MasterCard (open networks) or
on Discover (private dedicated networks).  


NMC PROPERTIES: Case Summary & Two Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: NMC Properties, Inc.
        3525 Hickory Branch Trail
        Suwanee, GA 30024

Bankruptcy Case No.: 06-70647

Chapter 11 Petition Date: September 1, 2006

Court: Northern District of Georgia (Atlanta)

Debtor's Counsel: M. Denise Dotson, Esq.
                  Jones & Walden, LLC
                  21 Eighth Street, Northeast
                  Atlanta, GA 30309
                  Tel: (404) 564-9300
                  Fax: (404) 564-9301

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's Two Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
City of Suwanee                  Property Taxes          $1,004
373 Highway 23                   3525 Hickory
Suwanee, GA 30024                Branch Trail

County of Gwinnett               2985 Ivy Plantation     $5,200
P.O. Box 372
Lawrenceville, GA 30046
                                 3982 Cherokee Trail     $3,500

                                 3525 Hickory Branch     $3,500
                                 Trail


NORTEL NETWORKS: Selling UMTS Business to Alcatel for $320 Million
------------------------------------------------------------------
Nortel has signed a non-binding Memorandum of Understanding for
the sale of its UMTS access business to Alcatel for $320 million.

The move will enable the Company to simplify its business and
strategically focus its investments for leadership in key markets
while ensuring its customers' UMTS access requirements will
continue to be met.

The Company disclosed that as part of its business strategy, it is
executing on plans to increase investment in key areas, partner in
others, and divest where there is no path for it to lead or
realize attractive returns.

Mike Zafirovski, president and chief executive officer, said,
"Nortel is sharpening its focus on the markets in which we intend
to lead. Our UMTS access business lacks the scale and momentum
needed to become profitable,"

"With next-generation mobility, we see an opportunity to change
the game by applying our networking expertise and technology
innovation to significantly alter the economic paradigm of
mobility solutions in the future," Mr. Zafirovski said.

"We are absolutely committed to mobility and plan to lead the 4G
evolution and play a key role in the mass market adoption of
mobile video and multimedia services." Richard Lowe, president,
Mobility and Converged Core Networks, said.  "With a strong
position in GSM and CDMA, an established service provider customer
base, and technology leadership in key areas like OFDM-MIMO, we
have a solid foundation for success going forward."

The proposed sale includes the Company's UMTS access product
portfolio made up of the Radio Network Controller and Node B
products and OAM solutions, related services and associated
assets.  Completion of the transaction is subject to the
negotiation and execution of a definitive agreement between the
Company and Alcatel, completion of consultations with work
councils and other employee representatives, and customary closing
conditions including regulatory approvals.  The transaction is
targeted for completion in the fourth quarter of 2006.

Headquartered in Ontario, Canada, Nortel Networks Corporation
(NYSE/TSX: NT) -- http://www.nortel.com/-- is a recognized leader  
in delivering communications capabilities that enhance the human
experience, ignite and power global commerce, and secure and
protect the world's most critical information.  Serving both
service provider and enterprise customers, Nortel delivers
innovative technology solutions encompassing end-to-end broadband,
Voice over IP, multimedia services and applications, and wireless
broadband designed to help people solve the world's greatest
challenges.  Nortel does business in more than 150 countries.

                           *     *     *

As reported in the Troubled Company Reporter on July 10, 2006,
Dominion Bond Rating Service confirmed the long-term ratings of
Nortel Networks Capital Corporation, Nortel Networks Corporation,
and Nortel Networks Limited at B (low) along with the preferred
share ratings of Nortel Networks Limited at Pfd-5 (low).  All
trends are Stable.

DBRS confirmed B (low) Stb Senior Unsecured Notes; B (low) Stb
Convertible Notes; B (low) Stb Notes & Long-Term Senior Debt;
Pfd-5 (low) Stb Class A, Redeemable Preferred Shares; and Pfd-5
(low) Stb Class A, Non-Cumulative Redeemable Preferred Shares.

As reported in the Troubled Company Reporter on June 20, 2006,
Moody's Investors Service affirmed the B3 corporate family rating
of Nortel; assigned a B3 rating to the proposed $2 billion senior
note issue; downgraded the $200 million 6.875% Senior Notes due
2023 and revised the outlook to stable from negative.

Standard & Poor's also affirmed its 'B-' long-term and 'B-2'
short-term corporate credit ratings on the company, and assigned
its 'B-' senior unsecured debt rating to the company's proposed
$2 billion notes.  The outlook is stable.


ONEIDA LTD: Court Approves Northpoint Industrial Lease Agreement
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New
York approved Oneida Ltd. and its debtor-affiliates' lease
agreement with Northpoint Industrial III, LLC,

On July 19, 2006, the Debtors agreed to lease a 504,200 sq. ft.
warehouse distribution and office facility located in Bryan
County, Georgia.  Northpoint Industrial also agreed to construct
the warehouse facility.

The lease agreement is integral to the Debtors' restructuring
efforts, as the warehouse, in part because of its proximity to the
Port of Savannah, will provide substantial savings over the
Debtors' current east coast warehouse in Sherrill, New York.

The agreement, with a seven-year lease term and a minimum monthly
rental of $117,646.57, will become effective on Nov. 1, 2006.  
Possession of the premises and warehouse will be delivered to the
Debtors no later than Dec. 15, 2006.

Headquartered in Oneida, New York, Oneida Ltd. (OTC: ONEI) --
http://www.oneida.com/-- manufactures stainless steel and  
silverplated flatware for both the Consumer and Foodservice
industries, and supplies dinnerware to the foodservice industry.
Oneida also supplies a variety of crystal, glassware and metal
serveware for the tabletop industries.

The Company and its 8 debtor-affiliates filed for Chapter 11
protection on March 19, 2006 (Bankr. S.D. N.Y. Case Nos. 06-10489
through 06-10496).  Douglas P. Bartner, Esq., at Shearman &
Sterling LLP represents the Debtors.  Credit Suisse Securities
(USA) LLC is the Debtors' financial advisor.  Scott L. Hazan,
Esq., and Lorenzo Marinuzzi, Esq., at Otterbourg, Steindler,
Houston & Rosen, P.C., represent the Official Committee of
Unsecured Creditors.  Robert J. Stark, Esq., at Brown Rudnick
Berlack Israels LLP represents the Official Committee of Equity
Security Holders.  When the Debtors filed for protection from
their creditors, they listed $305,329,000 in total assets and
$332,227,000 in total debts.  On May 12, 2006, Judge Gropper
approved the Debtors' disclosure statement.  The pre-negotiated
plan of reorganization of Oneida Ltd. was confirmed, on
Aug. 31, 2006.


ORIS AUTOMOTIVE: Court Okays Heninger as Panel's Special Counsel
----------------------------------------------------------------
The Honorable Tamara O'Mitchell of the U.S. Bankruptcy Court for
Northern District of Alabama in Birmingham authorized the Official
Committee of Unsecured Creditors of Oris Automotive Parts Alabama,
Ltd., to retain Heninger Garrison & Davis as its special counsel.

The Committee needs Heninger Garrison to perform discovery and
investigate if there are claims and causes of action against BBK,
Ltd., Mercedes, Oris-Germany, among others, as to their acts and
conduct in controlling the Debtor that resulted in:

   -- the Debtor's deepening insolvency,
   -- breach of fiduciary duties to the Debtor, and
   -- other causes pf action that may be uncovered through
      discovery.

Heninger Garrison will assist the Committee in discovery through
depositions and requests for production of documents and
investigate a cause of action that may ultimately result in a
recovery of funds to pay creditors in the Debtor's bankruptcy
case.

The Committee said that the Firm's professionals will bill:

      Professional                      Hourly Rate
      ------------                      -----------
      Stephen D. Heninger, Esq.             $250
      Erik Heninger, Esq.                   $150
      Paralegals                             $75

The Committee assures the Court that the Firm does not hold nor
represent any interest adverse to the Debtor's estate.

Headquartered in McCalla, Alabama, Oris Automotive Parts Alabama,
Ltd. -- http://www.oris-gmbh.de/-- manufactures automotive parts.   
The company filed for chapter 11 protection on March 16, 2006
(Bankr. N.D. Ala. Case No. 06-00813).  Clark R. Hammond, Esq., at
Johnston, Barton, Proctor & Powell LLP, represents the Debtor in
its restructuring efforts.  Charles L. Denaburg, Esq., and Marvin
E. Franklin, Esq., at Najjar Denaburg, P.C., represent the
Official Committee of Unsecured Creditors.  When the Debtor filed
for protection from its creditors, it estimated assets between
$1 million to $10 million and debts between $10 million to
$50 million.


OWENS CORNING: Court Grants Bondholders Protective Order Plea
-------------------------------------------------------------
The Honorable Judith Fitzgerald the U.S. Bankruptcy Court for the
District of Delaware grants the request of a group of Bondholders
for a Protective Order, for reasons stated in open court.

Fifteen bondholders, all signatories to Owens Corning and its
debtor-affiliates' Plan Support Agreement, asked the Court to
immediately enter a protective order against discovery requests
made by Schultze Asset Management LLC.

The Bondholders are:

    1. King Street Capital, Ltd.;
    2. King Street Institutional, Ltd.;
    3. King Street Capital L.P.;
    4. MA Deep Event Ltd.;
    5. Deephaven Distressed Opportunities Trading Ltd.;
    6. Deephaven Event Trading Ltd.;
    7. D.E. Shaw Laminar Portfolios, L.L.C.;
    8. Plainfield Special Situations Master Fund Limited;
    9. BlueBay Asset Management;
   10. Quadrangle Debt Opportunities Fund Master Ltd.;
   11. QDRF Master Ltd.;
   12. Citadel Equity Fund, Ltd.;
   13. Davidson Kempner Capital Management, LLC;
   14. Lehman Brothers, Inc.; and
   15. J.P. Morgan Securities, Inc.

As previously reported, Schultze objected to the Disclosure
Statement attached to the Debtors' Sixth Amended Plan or
Reorganization.  Among others, Schultze complained that the sixth
Amended Plan has not been proposed in good faith.

Richard W. Riley, Esq., at Duane Morris LLP, in Wilmington,
Delaware, said Schultze's lack-of-faith objection stems from the
belief that certain of the Bondholders participating in the Plan
negotiations also held bank debt or equity interests, creating a
supposed conflict of interest.

Mr. Riley noted that the Court already overruled Schultze's
objection.  However, Schultze continues to pursue the same
concerns as an objection to confirmation of the Sixth Amended
Plan.  Hence, Schultze propounded a host of discovery requests
directed to the Bondholders.

Schultze's discovery requests, among others, seek:

   -- all documents concerning a request to deem bank claims
      unimpaired and the Plan Support Agreement;

   -- testimony from each Bondholder;

   -- proprietary information as to each Bondholders' claims or
      interest in the Debtors and information concerning their
      alleged "conflicts of interest."

"Responding to the Discovery Requests will require each of the
Bondholders to expend considerable resources and time to produce
what would obviously be redundant . . . information," Mr. Riley
told the Court.

Schultze, Mr. Riley pointed out, seeks discovery not only as to
the plan negotiations but also as to negotiations surrounding the
Unimpairment Motion, Settlement Term Sheet and Plan Support
Agreement, all of which are already approved by the Court.

By failing to object to the Unimpairment Motion and the Plan
Support Agreement, Schultze, like all other parties, is bound by
the Court's orders that approved those matters.  Hence, Mr. Riley
contended that Schultze should not now be permitted discovery.

The Bondholders find Schultze's discovery requests a fishing
expedition into plan negotiations underlying the Sixth Amended
Plan.

Mr. Riley further noted that none of the discovery pertains in
any legitimate way to the issues Schultze will presumably raise
in its confirmation objection -- absolute priority, impermissible
classification, compliance with applicable laws, and best
interest of creditors.

Accordingly, the Bondholders ask the Court to see Schultze's
discovery plan as an intrusive and unwarranted effort to delve
into obviously collateral matters, designed to harass and to
divert the parties' and the Court's attention from an orderly and
timely consideration of the Sixth Amended Plan.

The Bondholders want the immediate entry of the Protective Order
because of the short time frame within which discovery for the
confirmation hearing must be completed.

The Debtors support the Bondholders' request, asserting that:

   -- the terms of the Sixth Amended Plan, not the negotiation
      pertaining to those terms, are the only relevant subject of
      inquiry; and

   -- permitting Schultze to invade the plan negotiations to
      attack a substantive element of the Debtors' proof at
      confirmation would violate the prohibition contained in    
      Rule 408 of Federal Rules of Evidence and weaken the
      willingness of debtors and creditors to negotiate candidly
      in future cases.

                        Schultze's Response

Through their joint efforts, if successful, the Debtors and the
Bondholders would deny Schultze a fair opportunity to conduct
reasonable discovery, and to develop a record regarding its
concens with respect to the Sixth Amended Plan, J. Cory
Falgowski, Esq., at Reed Smith LLP, in Wilmington, Delaware,
asserted.

Contrary to the Debtors' and the Bondholders' assertions, Mr.
Falgowski contended that Schultze's requests are narrowly tailored
to obtain production of documents that are directly relevant to
the confirmability of the Plan.

"In the interest of judicial economy and to permit the Court to
avoid delving further into sophomoric discovery squabbling,"
Schultze propounds a blacklined document requests directed to the
Debtors and the Bondholders, which reflects changes from the
original document requests.

Schultze asserted that the blacklined request are narrowly
tailored to be no more burdensome than is absolutely necessary to
obtain evidence that is directly relevant to confirmability of
the Plan.

Schultze asked the Court to direct the Debtors and the Bondholders
to immediately respond to their blacklined document requests and
to produce witnesses for depositions previously noticed.

                      About Owens Corning

Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors.  James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.
(Owens Corning Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


OWENS CORNING: Court Approves 7-Eleven's $1.5-Mil. Settlement
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
an agreement between Owens Corning and its debtor-affiliates and
7-Eleven, Inc., settling claims related to underground storage
tanks.

Between 1965 and 1995, Owens Corning manufactured and sold
fiberglass tanks for the underground storage of petroleum and
water, Kathleen P. Makowsky, Esq., at Saul Ewing LLP, in
Wilmington, Delaware, relates.  In 1995, Owens Corning sold its
storage tank business to Fluid Containment, Inc., now known as
Containment Solutions, Inc.  The Debtor retained certain
liability for warranty and product-related claims with respect to
the tanks it had manufactured.

Owens Corning manufactured and sold the tanks with a limited
30-year warranty against structural failure.  Recovery under the
Warranty was subject to certain conditions and was limited, at
Owens Corning's option, to:

   -- repair of a defective tank;

   -- delivery of a replacement tank to the point of original
      delivery; or

   -- refund of the original purchase price.

The Debtors expressly disclaimed any other warranty or other
obligation.

Because the Debtors sold the storage tank business prepetition
and have no ongoing tank product line, the Debtors, as part of
their Plan of Reorganization, elected to discharge their legal
obligations under the Warranty pursuant to Section 1141(d) of the
Bankruptcy Code.

                         7-Eleven's Claim

Before the Debtors filed for bankruptcy, 7-Eleven acquired some
storage tanks that Owens Corning manufactured and sold.  On April
10, 2002, 7-Eleven filed Claim No. 6803 for damages that arose out
of its acquisition of the tanks, including:

   -- breach of the Warranties;

   -- breach of implied warranties;

   -- contractual indemnification;

   -- common law indemnification and contribution;

   -- claims for strict liability for allegedly defective
      products; and

   -- citizen suit rights under the Resource Conservation and
      Recovery Act, as amended.

The Claim asserts damages including:

   -- $423,802 for actual damages suffered;

   -- anticipatory damages in an unspecified amount based on the
      potential failure of the storage tanks; and

   -- unspecified damages for consulting, expert and attorneys'
      fees.

The Claimant has not formally amended the Claim.  However,
through communications with counsel to the Debtors during which
the parties explored resolution of 7-Eleven's claims, 7-Eleven
told the Debtors' counsel that it will increase the amount
asserted in the Claim to reflect damages in excess of $6,000,000.
The Claimant provided documentation to support the Claim.

                       Settlement Agreement

After more than several months of negotiations, the Debtors and
7-Eleven agreed resolve the Claim, pursuant to the terms of the
Settlement Agreement.

The principal terms of the Settlement are:

   a. The Claim will be allowed against Owens Corning as a
      general unsecured, non-priority claim for $1,511,903;

   b. The Allowed Claim is in full and final satisfaction of any
      and all claims, liabilities or demands arising from to the
      storage tanks and the related Warranties including those
      that arose postpetition; and

   c. Except as to the Allowed Claim, 7-Eleven waives, releases
      and forever discharges the Debtors from all claims,
      obligations or causes of action  relating to the storage
      tanks the Warranties.

                      About Owens Corning

Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors.  James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.
(Owens Corning Bankruptcy News, Issue No. 139; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


PARMALAT USA: Court Approves Pact Resolving Two New Jersey Claims
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved the stipulation between Parmalat USA Corp., Farmland
Dairies LLC, and the State of New Jersey, Department of Treasury,
Division of Taxation, resolving New Jersey's claims against the
Debtors.

In the stipulation, the parties agree that:

   -- New Jersey's Claim Nos. 1041 and 1042 are disallowed in
      their entirety as against Parmalat USA;

   -- the parties consent to the jurisdiction of the Bankruptcy
      Court for all matters concerning the Stipulation; and

   -- the Stipulation does not resolve Farmland's objection to
      Claim No. 1042 under Section 502(d) of the Bankruptcy Code.

New Jersey is represented in the U.S. Debtors' cases by Tracy E.
Richardson, Esq., Deputy Attorney General at the New Jersey
Attorney General's Office, Division of Law, in Trenton, New
Jersey.

On Aug. 11, 2004, New Jersey filed Claim No. 876 for $1,746,730
against Parmalat USA and Farmland Dairies.  New Jersey later filed
Claim No. 1003 amending Claim No. 876.  New Jersey asserted a
$458,0798 unsecured priority claim against both Debtors.

At the U.S. Debtors' request, the Court disallowed Claim No. 876
in its entirety and deemed Claim No. 1003 as an unsecured
priority claim for $458,079 against Farmland.

Subsequently, New Jersey filed two unsecured priority claims,
each against Farmland and Parmalat USA:

   1. Claim No. 1035, amending Claim No. 1003, for $373,707; and

   2. Claim No. 1034, amending Claim No. 1035, for $429,341.

On Feb. 14, 2006, New Jersey filed Claim No. 1041 as a general
unsecured claim for $115,117 against Farmland and Parmalat USA.  
New Jersey also filed Claim No. 1042, amending Claim No. 1034, as
an unsecured priority claim for $306,522 against both of the U.S.
Debtors.

On Apr. 17, 2006, the Debtors and New Jersey entered into a
stipulation, which the Court later approved, agreeing that Claim
Nos. 876, 1003, 1034 and 1035 are to be disallowed in their
entirety.

Against this backdrop, the U.S. Debtors sought disallowance of
Claim Nos. 1041 and 1042 against Parmalat USA, contending that
Parmalat USA is not liable for the two Claims and that the Claims
should have been asserted against Farmland only.  The U.S. Debtors
also asked the Court to disallow Claim No. 1042 against Farmland.

Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News, Issue
No. 76; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000,)


PARMALAT USA: Farmland, et al. OKs Arthur George's Suit to Proceed
------------------------------------------------------------------
Farmland Dairies LLC, the Farmland Dairies LLC Unsecured
Creditors' Trust, and Arthur George agree to the modification of
the Plan injunction to allow the parties to prosecute and defend
against Mr. George's personal injury suit pending before the
Supreme Court of the State of New York, County of Bronx.

However, Mr. George will in no event be entitled to recover any
property of or from the Debtors or their estates, Reorganized
Farmland, or the Trust.  He will have recourse solely against any
available insurance proceeds.

Mr. George's suit relates to the injuries he sustained while
unloading milk crates inside a truck owned and maintained by
Sunnydale Farms, Inc., a business unit of Farmland.  Mr. George
seeks $900,000 in damages in the Action.

At the time of the accident, Farmland maintained a general
liability insurance policy with Royal & SunAlliance.

Mr. George agrees that payment of any judgment awarded against
the U.S. Debtors' insurers, if any, will be reduced by the lesser
of the payment or the amount of the Policy's deductible that the
U.S. Debtors, Reorganized Farmland or the Trust might otherwise
be liable for.

Mr. George's Lift Stay Motion is withdrawn, with prejudice.  
Mr. George releases the U.S. Debtors, Reorganized Farmland and the
Trust from all claims and causes of action.

Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News, Issue
No. 76; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000,)


PETER FALTINGS: Case Summary & 14 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Peter F. Faltings
        100 Conover Road
        Marlboro, NJ 07746

Bankruptcy Case No.: 06-18219

Chapter 11 Petition Date: September 1, 2006

Court: District of New Jersey (Trenton)

Judge: Kathryn C. Ferguson

Debtor's Counsel: Joseph Albanese, Esq.
                  915 Lacey Road
                  Forked River, NJ 08731
                  Tel: (609) 971-6200
                  Fax: (609) 971-6300

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 14 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Internal Revenue Service           Income Taxes        $1,326,508
Cincinnati, OH 45999-0025

Abacus Capital                     Misc. Debt            $850,000
9 Conifer Drive
Mendham, NJ 07945

National Equity Corp.              Misc. Debt            $806,200
224 West 35th Street
New York, NY

Sherwin Williams Company           Misc. Debt            $225,000
c/o Stein, McGuire, Pantages,
& Gigl LLP
354 Eisenhower Parkway
Livingstone, NJ 07039

Berger and Borenstein              Misc. Debt            $145,000
237 South Street
Morristown, NJ 07960

Law Office of Poe & Freireich      Legal Fees             $90,000

Oaktree Cleaners, Inc.             Misc. Debt             $25,000

GMAC                               Car Loan               $22,400

Hartsko Financial Services, Inc.   Misc. Debt             $11,455

Citibank (South Dakota) N.A.       Credit Card             $6,838

One Source Landscaping             Misc. Debt                $776

The Jayson Company                 Misc. Debt                $497

JC Penney                          Credit Card               $443

State of New Jersey                Taxes                  Unknown


PHOTOCIRCUITS CORP: Files Third Amended Disclosure Statement
------------------------------------------------------------
Photocircuits Corporation delivered its Third Amended Disclosure
Statement explaining its Chapter 11 Plan of Liquidation to the
United States Bankruptcy Court for the Eastern District of New
York.

                   Overview of the Amended Plan

The Debtor's Amended Plan incorporates settlements previously
approved with the Debtor's senior and junior secured creditors and
other insiders.

The Debtor consummated a sale of substantially all of its
operating business assets as a going concern for the benefit of
its creditors with American Pacific Financial Corporation, which
will require the transfer of title to the 45-A Property and 45-B
Property.  The sale closing was funded on March 31, 2006 and
became effective on March 29, 2006.

American Pacific's modified purchase offer consist of:

   a) cash of $35.5 million ($3.5 million of which will be applied
      to reimburse Stairway for the draw on the letter of credit);

   b) the assumption of $2.1 million of administrative obligations
      consisting primarily of outstanding checks and accounts
      payable to post-petition vendors;

   c) the assumption of $1.5 million of accrued but unpaid
      vacation pay to employees; and

   d) a series of non-interest bearing contingent promissory notes
      in favor of the estate in the aggregate amount of $5.5
      million.

The notes indicated in the Asset Purchase Agreement mature one
each in years 2006, 2007, 2008, 2009, 2010, and 2011.  The payment
of the notes will be made from 50% of American Pacific's net
operating income in excess of $1 million for the perspective note
years.

The Plan is subject to the Court's approval of two settlements
reached with various parties.  The first settlement is the
Stairway/CMK Parties Settlement and the settlement with Messrs.
Endee, Wohlgemuth and Robbins, the Debtor's shareholders.  The
Court approved these settlements on March 10, 2006.  Following the  
settlement approval, the Debtor's debt structure before further
reduction from objections to Claims is:

   a) Stairway (senior secured lender) -- approximately $23.3
      million;

   b) CMK (junior secured creditor) -- $5.2 million;

   c) Other liens/cure costs -- $4.62 million;

   d) Administrative claims -- (Estimated) $5.4 million; and

   e) Unsecured creditors -- $50 million;

The Amended Plan provides that the estates of Photocircuits, Alpha
Forty-Five LLC and Beta Forty-Five LLC will be substantially
consolidated.

                           Plan Funding

The Debtor tells the Court that the Plan will be funded from the
proceeds from the sale of the assets after payment of the various
classes of Allowed Secured Claims and all other assets recovered
by the Litigation Trustee.  The Restructuring Committee shall
nominate an individual to act as Distributing Agent to make the
Distributions under the Plan.

                       Treatment of Claims

Under the Amended Plan, all Allowed Administrative Expense Claims,
estimated at $4.0 million, unless previously paid or assumed by
American Pacific will be paid in full, in cash, as soon as
practicable after the Effective Date but no later than within 30
days of the Effective Date of the Plan or within 10 days of entry
of the Court's Final Order allowing that Claim.

As of June 16, 2006, the Debtor's estate paid these amounts
pursuant to the Fee Order:

   Professionals                                    Amount
   -------------                                    ------
   Silverman Perlstein & Acampora LLP          $330,785.92
   Triax Capital Advisors LLC                     $802,565
   Morgan Lewis & Bockius, LLP                 $165,685.06
   Farrell Fritz, P.C.                         $445,049.66
   Deloitte Financial Advisory Services LLP    $285,268.80

All Allowed Secured Claims, including City of Glen Cove but
excluding claims held by Stairway or the CMK Parties will be paid
in full from the sale proceeds on the Effective Date.

Each holder of an Allowed Secured Claim not paid in connection
with the closing of the sale will:

   (a) receive the Collateral securing such holder's Allowed
       Secured Claim upon abandonment by the Debtor,

   (b) have its Allowed Secured Claim reinstated as provided under
       Section 1124 of the Bankruptcy Code, or

   (c) retain the Liens securing such Claims, whether Collateral
       subject to such liens is retained by the Post-Confirmation
       Debtor or transferred to another entity, to the extent of
       the Allowed amount of such Claims; and receive on account
       of such Claim deferred cash payments totaling at least the
       Allowed amount of such Claim, of a value, as of the
       Effective Date of the Plan of such holder's interest in the
       Debtor's interest in such Collateral; or

   (d) have its liens attach to the proceeds of the Asset Purchase
       Agreement and have its Allowed Secured Claim paid after the
       Effective Date, but no later than 30 days after the
       Effective Date and 10 days after the date the Secured Claim
       becomes an Allowed Secured Claim; or

   (e) receive treatment as agreed by the Post-Confirmation Debtor
       and the holder;

in full satisfaction, settlement, release and discharge of, and in
exchange for, its allowed secured claim, in the sole discretion of
the Post-Confirmation Debtor

The Stairway Secured Claim consists of the First priority Secured
Claim of Stairway in the aggregated amount of $24 million, which
will be satisfied in the Allowed amount of $22.9 million at the
Closing of the Debtors' sale of the assets to American Pacific or
such other purchaser if the Debtors' proposed sale to American
Pacific does not close.

The CMK Secured Claim consists of the Junior Secured Claim of the
CMK parties in the aggregate amount of approximately $32 million
which claim, will be satisfied in the reduced and Allowed amount
of $5.2 million at the closing of the sale of the Debtors' assets
to American Pacific or such other purchaser if the Debtors'
proposed sale to American Pacific does not close.

Allowed Priority Claims related to employees shall be paid in full
by assumption of certain obligations by the purchaser of the
Debtor's assets.

Each holder of an Allowed Unsecured Claim will not receive
payment, in full, on the Effective Date of the Plan.  The Debtor
estimates that the Filed Unsecured Claims will be approximately
$50,000,000.

Holders of Shareholder Interests will not receive a distribution
under the Plan and all Allowed Shareholder Interests shall be
cancelled upon the Effective Date.

A full-text copy of the Debtors' Third Amended Disclosure
statement is available for a fee at:

http://www.researcharchives.com/bin/download?id=060904205330

Headquartered in Glen Cove, New York, Photocircuits Corporation
-- http://www.photocircuits.com/-- was the first independent       
printed  circuit board fabricator in the world.  Its worldwide
reach comprises facilities in Peachtree City, Georgia; Monterrey,
Mexico; Heredia, Costa Rica; and Batangas, Philippines.  The
Company filed for chapter 11 protection on Oct. 14, 2005 (Bankr.
E.D.N.Y. Case No. 05-89022).  Gerard R. Luckman, Esq., at
Silverman Perlstein & Acampora LLP, represents the Debtor in its
restructuring efforts.  Ted A. Berkowitz, Esq., and Louis A.
Scarcella, Esq., at Farrell Fritz, P.C., represent the Official
Committee of Unsecured Creditors.  When the Debtor filed for
protection from its creditors, it estimated more than $100 million
in assets and debts.


PLAYLOGIC ENT: Balance Sheet Upside-Down by $2.66 Mil. at June 30
-----------------------------------------------------------------
Playlogic Entertainment, Inc., incurred a $3,965,285 net loss on
$3,132,671 of revenues on the second quarter ending June 30, 2006,
the Company disclosed in a Form 10-QSB report filed with the
Securities and Exchange Commission.  

As of June 30, 2006, the Company's balance sheet showed assets
amounting to $9,518,266 and liabilities aggregating $12,182,312.  
The Company's equity position slid from a $1,255,826 positive
equity as of June 30, 2005, to a $2,664,046 equity deficit at June
30, 2006.
    
As of June 30, 2006, the Company had $151,593 of cash on hand.   
Willem M. Smit, the Company's Chief Executive Officer, said that
to cover the Company's working capital requirements through the
third quarter of 2006, the Company needs to obtain additional
financing from third parties.  The cash flow from operating
activities could not be sufficient to cover the existing
commitments and the development costs for both externally and
internally developed games.  As of June 30, 2006, the Company had
$3,905,993 in current assets to pay for $11,934,409 in current
debts.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?1109

                        Going Concern Doubt

S. W. Hatfield, CPA, the Company's auditor, expressed substantial
doubt about the Company's ability to continue as a going concern
after auditing the Company's financial statements for the year
ending Dec. 31, 2005.  The auditor pointed to the Company's net
operating losses and reliance on outside sources of working
capital to meet current obligations.

                   About Playlogic Entertainment

Playlogic Entertainment, Inc., publishes interactive entertainment
products, such as video game software and other digital
entertainment products.  The Company publishes for most major
interactive entertainment hardware platforms, like Sony's
PlayStation2, Microsoft's Xbox and Nintendo's Game Cube, PCs, next
generation consoles and handheld (such as Nintendo's Game Boy,
Nintendo DS, and PSP) and mobile devices.


RAMESH PATEL: Case Summary & 15 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Ramesh Dahyabhai Patel
        dba Airport Inn
        fdba Travelodge
        fdba Super 8 Motel
        fdba Airport Super 8 Motel
        fdba Airport Travelodge
        4620 Dorchester Road
        Charleston, SC 29405

Bankruptcy Case No.: 06-03873

Chapter 11 Petition Date: September 1, 2006

Court: District of South Carolina (Charleston)

Debtor's Counsel: Kevin Campbell, Esq.
                  Cambell Law Firm, P.A.
                  P.O. Box 684
                  890 Jonnie Dodds Boulevard
                  Mt. Pleasant, SC 29465
                  Tel: (843) 884-6874

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 15 Largest Unsecured Creditors:

   Entity                             Claim Amount
   ------                             ------------
Community National Bank                 $1,500,000
P.O. Box 817
South Boston, VA 24592

G.E. Capital                            $1,435,734
44 Old Ridgebury Road
Danbury, CT 06810

Certified Development Corporation         $690,000
P.O. Box 21823
Columbia, SC 29221

Enterprise Bank of South Carolina         $114,652
P.O. Box 8
Ehrhardt, SC 29081

SBA Disaster Relief                        $85,000
P.O. Box 740192
Atlanta, GA 30374-0192

Business Loan Advantage                    $70,000

G.E. Capital                               $40,000

SBA Disaster Relief                        $35,000

Charleston County Delinquent Tax Dept.     $32,590

Financial MBNA                             $10,130

Internal Revenue Service                    $7,000

Porter Law Firm                             $7,000

South Carolina Department of Revenue        $4,000

G. Simms McDowell, III                      $2,650

Bluestein & Johnson, LLC                    $2,448


RECORP GROUP: Case Summary & Six Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Recorp Group, Inc.
        920 Rockmoor
        Georgetown, TX 78628

Bankruptcy Case No.: 06-11369

Type of Business: The Debtor filed for chapter 11 protection
                  on July 3, 2006 (Bankr. W.D. Tex. Case No.
                  06-33031).

Chapter 11 Petition Date: September 1, 2006

Court: Western District of Texas (Austin)

Judge: Frank R. Monroe

Debtor's Counsel: John Charles Hampton, Esq.
                  D. Matthew Freeman, Esq.
                  D. Matthew Freeman & Associates, LLP
                  230 Westcott, Suite 202
                  Houston, TX 77007
                  Tel: (713) 255-7400

Total Assets: $2,574,600

Total Debts:  $3,829,000

Debtor's Six Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Rodika Salkter                   Interlocutory         $1,700,000
c/o Tom Fillion                  Judgments
7660 Woodway Drive, Suite 590
Houston, TX 77063

Brett Salter                     Advance for             $182,000
c/o Sheldon Skryzlo              Operations
481 University Avenue
Suite 510
Toronto, Ontario M5G 2E9

James Fertsch                    Unknown                  Unknown
P.O. Box 2035
Round Rock, TX 78680

Advanced Concrete                Unknown                  Unknown
Protection, Inc.
300 West 55th Street
Austin, TX 78751

Tom Fillion                      Unknown                  Unknown
7660 Woodway Drive
Suite 590
Houston, TX 77063

Jim Ewbank                       Unknown                  Unknown
221 West 6th Street, Suite 900
Austin, TX 78701


REFCO INC: Committee Wants Houlihan Lokey's Fees Increased
----------------------------------------------------------
The Official Committee of Unsecured Creditors of Refco Inc., and
its debtor-affiliates tells the U.S. Bankruptcy Court for the
Southern District of New York that as the Debtors' Chapter 11
cases have progressed, its need for Houlihan Lokey Howard & Zukin
Capital, Inc.'s services, as investment banker, has increased.

Luc A. Despins, Esq., at Milbank, Tweed, Hadley & Mccloy LLP, in
New York, explains that causes for this increased workload
include:

   (i) the increasing difficulty of assisting the Official
       Committee in its investigation of the Debtors' financial
       Affairs, as growing numbers of employees have left the
       company;

  (ii) the demands of multiple parties on Houlihan in connection
       with attempts to reach a global Chapter 11 plan for the
       Debtors as well as a settlement for Refco Capital
       Markets, Ltd. estate; and

(iii) the investigation of potential causes of action against
       third parties, including actions against SPhinX Managed
       Futures Fund and BAWAG P.S.K.

Mr. Despins asserts that Houlihan's continued participation has
been indispensable to the plan process as well as the Creditors
Committee's ability to reach settlements favorable to the
Debtors' estates like those in both the SPhinX and BAWAG
litigations -- settlements that have the potential to add more
than $1,000,000 in value to those estates.

Accordingly, the Official Committee asks Judge Drain to amend
Houlihan's engagement as investment bankers and financial
advisors to provide that:

   -- Houlihan will be entitled to a $7,000,000 increase in its
      initial transaction fee, above and beyond the $2,000,000
      that it has already earned but has not yet been paid; and

   -- $50,000, rather than 50%, of each monthly fee after the
      ninth Monthly Fee will be credited against the Transaction
      Fee.

With respect to monitoring the BAWAG sale process, the Creditors
Committee proposes that Houlihan be paid an additional $50,000
monthly fee beginning August 1, 2006, for acting as "Committee
Banker" pursuant to the BAWAG Settlement.  Houlihan will also
receive 1% of a Contingent Payment received by the Refco, Inc.
estates from specified BAWAG transactions.

However, to the extent the BAWAG Transaction Fee exceeds
$1,000,000, 50% of the BAWAG Monthly Fees will be credited
against the BAWAG Transaction Fee.

The Creditors Committee believes that the fees are reasonable and
fair compensation for Houlihan, considering that the scope of
engagement and the results the firm has achieved have
significantly exceeded that contemplated when both the parties'
Initial Engagement Letter and an amended Engagement Letter.

In addition, the Creditors Committee contends that the amended
retention:

   -- is consistent with the six-month review of compensation
      provision in the firm's Initial Retention Letter and
      statements of counsel;

   -- is contemplated by reservation of rights in the final order
      approving the firm's retention; and

   -- reflects the Committee's high degree of satisfaction with
      the services rendered by and extraordinary results
      achieved by Houlihan to date.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most
active members of futures exchanges in Chicago, New York, London
and Singapore.  In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products.  Refco is one of the largest
global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors.  Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada.  Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is
represented by Bingham McCutchen LLP.  RCM is Refco's operating
subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News, Issue
No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


REFCO INC: Panel Inks Stipulation with E&Y on Document Production
-----------------------------------------------------------------
Section 7216(a) of the Internal Revenue Code entitled "Disclosure
or Use of Information by Preparers of Returns" and 26 C.F.R.
Section 301.726-1 prohibit the disclosure of "tax return
information," particularly certain information furnished by a
taxpayer in connection with preparation of tax returns.

Under Section 301.7216-2(c), the provisions of Section 7216(a)
and Section 301.726-1 do not apply to any disclosure of tax
return information where that disclosure is made pursuant to an
order of any court of record.

The Official Committee of Unsecured Creditors of Refco Inc., and
its debtor-affiliates tells the U.S. Bankruptcy Court for the
Southern District of New York that compliance by Ernst & Young
LLP, with a subpoena directing production of documents
contemplates the production to the Creditors Committee of tax
return information furnished by Refco, Inc.

In a Court-approved stipulation, the Creditors Committee and
Ernst & Young agree that consistent with Section 301.7216-2,
Ernst & Young's production of and the Committee's use of the tax
return information will be governed by the terms of a protective
order governing production and use of confidential material
entered on April 26, 2006.

As reported in the Troubled Company Reporter on July 6, 2006, the
Creditors Committee asked the Court to compel 22 respondents to
produce documents on or before the date that is 30 days after a
corresponding subpoena is served.

The Court had previously authorized the Committee to serve
subpoenas calling for production of documents on 16 individuals
and entities regarding Refco, Inc.'s operations.  The Committee
has been pursuing discovery from the subpoena recipients.

Based on the Debtors' public statements, the criminal complaint
for securities fraud filed against Phillip R. Bennett, and the
Committee's preliminary investigation, the Committee has learned
of additional persons and entities who likely have information
relevant to:

   (i) the Debtors' property and its location;

  (ii) the assets, liabilities and financial condition of the
       Debtors;

(iii) matters that may affect the administration of the
       Debtors' estates; and

  (iv) the identification and prosecution of certain potential
       claims against third parties by a representative of the
       Debtors' estates.

Ernst & Young was listed as one of the 22 respondents.

                          About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in
14 countries and an extensive global institutional and retail
client base.  Refco's worldwide subsidiaries are members of
principal U.S. and international exchanges, and are among the most
active members of futures exchanges in Chicago, New York, London
and Singapore.  In addition to its futures brokerage activities,
Refco is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products.  Refco is one of the largest
global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors.  Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada.  Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is
represented by Bingham McCutchen LLP.  RCM is Refco's operating
subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News, Issue
No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


REMEDIATION FINANCIAL: Must File Disclosure Statement by Sept. 14
-----------------------------------------------------------------
The Honorable Charles G. Case II of the U.S. Bankruptcy Court for
the District of Arizona in Phoenix gave Remediation Financial,
Inc., and its debtor-affiliates until Sept. 14, 2006, to file
their Disclosure Statement.

Judge Case also extended the Debtors' exclusive solicitation
period to Oct. 5, 2006.

Judge Case will convene a hearing on the Debtors' exclusive
periods at 10:00 a.m. on Oct. 5, 2006.  

Objections to the Debtors' amended disclosure statement, if any,
should be submitted by Oct. 12, 2006.

Judge Case will convene a hearing on the Debtors' disclosure
statement at 10:00 a.m. on Oct. 19, 2006.

Headquartered in Phoenix, Arizona, Remediation Financial, Inc., is
a real estate developer.  Remediation Financial, Inc., and Santa
Clarita, L.L.C. filed for chapter 11 protection on July 7, 2004
(Bankr. D. Ariz. Case No. 04-11910).  RFI Realty, Inc., filed on
June 15, 2004 (Bankr. D. Ariz. Case No. 04-10486) and Bermite
Recovery, L.L.C., filed on September 30, 2004 (Bankr. D. Ariz.
Case No. 04-17294).  Alisa C. Lacey, Esq., at Stinson Morrison
Hecker LLP, represents the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, they
listed estimated assets of more than $100 million and estimated
debts of $10 million to $50 million.

The Debtors have until Sept. 14, 2006, to file their Disclosure
Statement.  Their exclusive solicitation period will expire on
Oct. 5, 2006.


ROGER CARTER: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Roger Carter Corp.
        P.O. Box 3129
        Kinston, NC 28502

Bankruptcy Case No.: 06-02707

Type of Business: The Debtor manufactures commercial
                  wooden modular buildings.

Chapter 11 Petition Date: September 1, 2006

Court: Eastern District of North Carolina (Wilson)

Judge: J. Rich Leonard

Debtor's Counsel: Trawick H. Stubbs, Jr.
                  Stubbs & Perdue, P.A.
                  P.O. Box 1654
                  New Bern, NC 28563
                  Tel: (252) 633-2700
                  Fax: (252) 633-9600

Total Assets: $3,998,419

Total Debts:  $3,690,681

Debtor's 20 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Atex Distributing Inc.             Trade Debt             $90,830
2317 Griffin Road
Lessburg, FL 32748

The Mega Force Staffing            Trade Debt             $76,812
P.O. Box, 53449
Fayetteville, NC 28305-3449

Bluelinx Corporation               Trade Debt             $67,916
P.O. Box 751692
Charlotte, NC 28275-1692

Shepherd Electric Supply           Trade Debt             $54,603
P.O. Box 58787
Raleigh, NC 27658

Nucor Steel Berkeley               Trade Debt             $51,284
P.O. Box 751412
Charlotte, NC 28275-1412

Patrick Industries Inc.            Trade Debt             $36,880

Godwin Door & Hardware             Trade Debt             $32,696

Hoyles Tire & Axle                 Trade Debt             $27,615

Elixir Industries                  Trade Debt             $27,113

ABC Supply Co.                     Trade Debt             $26,400

East Carolina Labor LLC            Trade Debt             $20,899

East Coast Metal Dist.             Trade Debt             $17,810

I P Company                        Trade Debt             $14,444

Noland                             Trade Debt             $13,358

Maupin Taylor, PA                  Legal Services         $12,000

G-P Gypsum Corp.                   Trade Debt             $10,913

Amerimax Buidling Product          Trade Debt             $10,643

BBC Distribution LLC               Trade Debt             $10,013

Universal Forest Products          Trade Debt              $9,617

Wesco Distribution Inc.            Trade Debt              $8,319


SAINT VINCENTS: Court Approves Amended Labor Pacts with Unions
--------------------------------------------------------------
The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court
for the Southern District of New York approves the proposed Labor
Agreements between the Debtors and six separate collective
bargaining units, and authorizes the Debtors to enter into
and perform in accordance with the Labor Agreements, subject to,
and effective immediately prior to, the closing of the sale of
St. John's Hospital and Mary Immaculate Hospital at Queens and
the assignment of the Labor Agreements to the purchaser of St.
John's and Mary Immaculate.

According to Judge Hardin, the approval of the Labor Agreements
will not be effective if the sale of the Queens Hospitals does
not close and the Labor Agreements are not assigned to the
Purchaser.

As reported in the Troubled Company Reporter on Aug. 25, 2006, the
Debtors asked the Court for permission to enter into separate
agreements that will govern their relationship with six collective
bargaining units for varied periods, generally between one and two
years, to ensure compliance, to the extent required, with Section
363(b) of the Bankruptcy Code:

    1. The Master Clerical Agreement with the Teamsters Local 803
       covers the full-time and regular part-time office clerical
       and professional employees who are regularly scheduled to
       work 14 hours or more per week at St. John's Hospital,
       Queens, and Mary Immaculate Hospital, Queens.  The term of
       the agreement runs from Feb. 15, 2006, through June 30,
       2007.

       The Local 803 Master Clerical Agreement supercedes all
       previously dated written agreements while maintaining the
       status quo with respect to the existing terms and
       conditions of employment for the Local 803 Employees.

    2. The Transportation Personnel Agreement with the Teamsters
       Local 803 covers the full-time and regular part-time office
       paramedics, emergency medical technicians, chauffeurs, and
       vehicle maintenance employees who are regularly scheduled
       to work 16 hours or more per week at MIH.  The term of the
       agreement runs from February 15, 2006, through June 30,
       2007.

       The Local 803 Transportation Personnel Agreement supercedes
       all previously dated written agreements while maintaining
       the status quo with respect to the existing terms and
       conditions of employment for the Local 803 Transportation
       Personnel Employees.

    3. The Memorandum of Agreement with the Special and Superior
       Officers Benevolent Association covers the security
       officers working at St. John's, MIH, St. Anthony's and St.
       Matthew's.  The Agreement extends the parties' relationship
       through Sept. 30, 2006.

       The SSOBA Memorandum of Agreement makes changes to the
       vacation donation, meal break and training policies.
       Except for those changes, it maintains the status quo with
       respect to the existing terms and conditions of employment
       for the SSOBA Employees.

    4. The Memorandum of Agreement with Building and Construction
       Trades Council covers the MIH engineering and maintenance
       employees.  It runs through Oct. 15, 2007.

       The BCTC Memorandum of Agreement maintains the status quo
       with respect to the existing terms and conditions provided
       by the CBA.

    5. The MIH Agreement and Monsignor Fitzpatrick Agreement with
       the New York State Nurses Association covers nurses working
       at MIH and Monsignor Fitzpatrick.  The NYSNA Agreements
       provide for an extension retroactive to Feb. 1, 2006, and
       effective through Jan. 31, 2007.

       The NYSNA Agreements maintain the status quo except for
       these changes:

       (a) an increase in employer pension plan contributions for
           eligible employees retroactive to February 1, 2006,
           and applicable through Dec. 31, 2006, at the rate of
           $7,278;

       (b) effective Jan. 1, 2007, through Jan. 31, 2007, an
           increase in employer pension plan contribution for
           eligible employees at the rate of $7,866; and

       (c) for permanent full-time employees, retroactive to
           Feb. 1, 2006, and effective during the term of the
           NYSNA Agreements, the Debtors will make a prorated
           monthly premium contribution on behalf of each full-
           time employee to the NYSNA benefits fund.  The premium
           that went into effect on Feb. 1, 2006, is $11,123
           annually.

Headquartered in New York, New York, Saint Vincents Catholic
Medical Centers of New York -- http://www.svcmc.org/-- the  
largest Catholic healthcare providers in New York State, operate
hospitals, health centers, nursing homes and a home health agency.
The hospital group consists of seven hospitals located throughout
Brooklyn, Queens, Manhattan, and Staten Island, along with four
nursing homes and a home health care agency.  The Company and six
of its affiliates filed for chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).  Gary
Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will &
Emery, LLP, filed the Debtors' chapter 11 cases.  On Sept. 12,
2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took
over representing the Debtors in their restructuring efforts.
Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represents the
Official Committee of Unsecured Creditors.

As of Apr. 30, 2005, the Debtors listed $972 million in total
assets and $1 billion in total debts.  (Saint Vincent Bankruptcy
News, Issue No. 33 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SAINT VINCENTS: Court Approves DMC Contract Rejection
-----------------------------------------------------
The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court
for the Southern District of New York allows Saint Vincents
Catholic Medical Centers of New York and its debtor-affiliates to
reject an MRI Contract with Diagnostic Medical Consultants, Inc.,
effective as of July 1, 2006.

The Court rules that the rejection will not, directly or
indirectly, prejudice (i) any rights and claims that DMC may
have against the Debtors as a result of the rejection of the MRI
Contract; and (ii) any rights, claims and defenses that the
Debtors may have with respect thereto, including, without
limitation, the right to object to the validity, enforceability
and amount of any rights and claims asserted by DMC.

DMC had filed a timely claim for rejection damages.  DMC objects
to the Debtors' characterization of the contract to be
rejected and any potential attempt to use the description in the
Rejection Motion for ultimate claim resolution purposes.

As reported in the Troubled Company Reporter on Aug. 28, 2006, the
Debtors sought to reject their executory contract with DMC.  The
Debtors believe that the contract with DMC was no longer
beneficial to their estates.

Under the Contract, DMC is obligated to provide to SVCMC:

    * a Modular MRI Unit for use at St. Vincent's Hospital, Staten
      Island; and

    * a Mobile MRI Unit for use at Mary Immaculate Hospital,
      Queens.

DMC also provides various services in connection with Saint
Vincent Catholic Medical Centers' use of the MRI Units.  The term
of the MRI Contract with respect to each MRI Unit is five years
from the date a patient is first scanned on that MRI Unit.

For its part, SVCMC remits a minimum monthly payment of $96,000 to
DMC for use of the MRI Units, Andrew M. Troop, Esq., at Weil,
Gotshal & Manges LLP, in New York, relates.

Due to an increase in the number of competing facilities offering
MRI services, the demand for in-patient and out-patient MRI
examinations has declined.  The amount managed care providers
reimburse hospitals for performing MRI examinations has also
continued to decrease.

As a result, the MRI Contract caused SVCMC to incur costs that
significantly outweigh any benefits to the Debtors' estates.  The
Debtors have also recently sold Mary Immaculate and SVHSI as going
concerns, and the purchasers have not identified the MRI Contract
for assumption and assignment.

Headquartered in New York, New York, Saint Vincents Catholic
Medical Centers of New York -- http://www.svcmc.org/-- the  
largest Catholic healthcare providers in New York State, operate
hospitals, health centers, nursing homes and a home health agency.
The hospital group consists of seven hospitals located throughout
Brooklyn, Queens, Manhattan, and Staten Island, along with four
nursing homes and a home health care agency.  The Company and six
of its affiliates filed for chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).  Gary
Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will &
Emery, LLP, filed the Debtors' chapter 11 cases.  On Sept. 12,
2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took
over representing the Debtors in their restructuring efforts.
Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represents the
Official Committee of Unsecured Creditors.

As of Apr. 30, 2005, the Debtors listed $972 million in total
assets and $1 billion in total debts.  (Saint Vincent Bankruptcy
News, Issue No. 33 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SILICON GRAPHICS: Files Supplements to First Amended Plan
---------------------------------------------------------
Silicon Graphics, Inc., and its debtor-affiliates delivered to the
U.S. Bankruptcy Court for the Southern District of New York
additional supplements to their First Amended Joint Plan of
Reorganization on August 29, 2006, which, among other things,
disclose:

    -- the names of the initial members of the new board of
       directors of Reorganized Debtor Silicon Graphics, Inc.:

          * Dennis McKenna,
          * Eugene Davis,
          * Anthony Grillo,
          * Kevin Katari,
          * James Mesterharm, and
          * Chun Won Yi;

    -- Barry Weinert and Kathy Lanterman as the initial members of
       the new board of directors of 12 Reorganized Debtors,
       specifically:

        (1) Cray Asia/Pacific, Inc.,
        (2) Cray Financial Corporation,
        (3) Cray Research America Latina, Ltd.,
        (4) Cray Research Eastern Europe, Ltd.,
        (5) Cray Research India, Ltd.,
        (6) Cray Research International, Inc.,
        (7) ParaGraph International, Inc.,
        (8) Silicon Graphics Federal, Inc.,
        (9) Silicon Graphics Real Estate, Inc.,
       (10) Silicon Graphics World Trade Corporation,
       (11) Silicon Studio, Inc., and
       (12) WTI Development, Inc.; and

    -- Silicon Graphics, Inc., as the sole member of the new board
       of Reorganized Cray Research, LLC.

The Plan Supplement also includes:

    (a) a new organizational documents form,
    (b) a registration rights agreement form,
    (c) a new management agreements form,
    (d) a management incentive plan form,
    (e) a liquidating trust agreement,
    (f) schedules 8.1 (A) and (B),
    (g) a list of customer support agreements,
    (h) schedule 12.9,
    (i) a subscription rights form, and
    (j) a new common stock form.

A full-text copy of the Supplement to the Amended Plan is
available for free at http://researcharchives.com/t/s?110c

         Debtors Will Assume Customer Support Agreements

The Debtors notify the Court that they intend to assume and
continue those agreements needed to provide customer support,
maintenance, warranty service, or similar support to end-user
customers.

The Debtors also intend to assume:

    (i) the unexpired leases and executory contracts listed on
        Schedules 8.1(A) and (B) of the Plan Supplement;

   (ii) all agreements between the Debtors and any U.S.
        governmental entity;

  (iii) all agreements entered into by the Debtors for the primary
        purpose of governing the non-disclosure of confidential or
        sensitive information; and

   (iv) all agreements the primary purpose of which is the
        licensing of intellectual property rights by the Debtors
        from third parties.

Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance  
computing.  SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data.  The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).  Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed total assets of $369,416,815 and
total debts of $664,268,602.  (Silicon Graphics Bankruptcy News,
Issue No. 16; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SILICON GRAPHICS: Storage Technology Objects to Plan Confirmation
-----------------------------------------------------------------
Storage Technology Corporation, a creditor and party-in-interest
in Silicon Graphics, Inc., and its debtor-affiliates' Chapter 11
cases, objects to confirmation of the Debtors' First Amended Joint
Plan of Reorganization to the extent that the Plan seeks to assume
any executory contract between the Debtors and Storagetek without
a full and immediate cure of defaults and adequate assurance of
future performance.

According to Patrick M. Costello, Esq., at Bialson, Bergen &
Schwab, in Palo Alto, California, Storagetek and SGI are parties
to executory contracts, particularly, a product sales Agreement,
an umbrella services agreement, and customer support agreements.

As of the Petition Date, SGI owed Storagetek:

    * $743,935 for data storage equipment and products delivered;
      and

    * $152,742 and $147,742 for support and maintenance services.

Storagetek objects to any attempt by the Debtors to postpone the
assumption of any Storagetek executory contract to a date after
the confirmation, Mr. Costello says.  If SGI is going to seek to
assume any contract with Storagetek, it must do so as part of the
Plan, and must demonstrate that it will cure all defaults and
provide adequate assurance of future performance as part of Plan
confirmation.

Storagetek further requests that the Plan Confirmation Order
provide that the full cure amount be paid no more than five
business days after the Plan Effective Date.

In the event of a dispute as to the precise dollar amount of any
cure amount, the Debtors should be required to pay the undisputed
portion within five business days of the Plan Effective Date and
deposit a sum equal to the disputed portion in a segregated
account, Mr. Costello explains.

Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance  
computing.  SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data.  The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).  Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed total assets of $369,416,815 and
total debts of $664,268,602.  (Silicon Graphics Bankruptcy News,
Issue No. 16; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SMARTVIDEO TECH: Posts $6.2 Million Net Loss in Second Quarter
--------------------------------------------------------------
SmartVideo Technologies, Inc., incurred a $6.2 million net loss on
$166,432 of net revenues for the three months ended June 30, 2006,
compared to a $4.4 million net loss on $38,360 of net revenues in
2005, the Company disclosed on Form 10-Q filed with the Securities
and Exchange Commission.

At June 30, 2006, the Company's balance sheet showed $12.3 million
in total assets and $13.9 million in total liabilities, resulting
in a $1.7 million stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $9 million in total current assets available to pay $11.7
million in total current liabilities coming due within the next 12
months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1103

                   About SmartVideo Technologies

Headquartered in Duluth, Georgia, SmartVideo Technologies, Inc. --
http://www.smartvideo.com/-- provides video content distribution  
services and technology to consumers connected to the Internet.  
The company offers its customers access to video programming that
is transmitted directly to mobile display devices, cell phones,
and personal digital assistant devices, which connect to the
Internet through cellular data networks and wireless access.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on June 12, 2006,
Sherb & Co., LLP, expressed substantial doubt about the Company's
ability to continue as a going concern pointing to the Company's
recurring losses from operations, cash burn, working capital
deficit, stockholders' deficit and accumulated deficit.


SOLVIT GROUP: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: The Solvit Group, LLC
        6531 Metropolitan Parkway
        Sterling Heights, MI 48312

Bankruptcy Case No.: 06-52199

Debtor-affiliate filing separate chapter 11 petition:

      Entity                   Case No.
      ------                   --------
      Martha C. Theis          06-52203

Chapter 11 Petition Date: September 1, 2006

Court: Eastern District of Michigan (Detroit)

Judge: Thomas J. Tucker

Debtor's Counsel: Todd M. Halbert, Esq.
                  24359 Northwestern Highway, Suite 250
                  Southfield, MI 48075
                  Tel: (248) 356-6204
                  Fax: (248) 304-1502

                             Estimated Assets   Estimated Debts
                             ----------------   ---------------
   The Solvit Group, LLC     $1 Million to      $500,000 to
                             $10 Million        $1 Million

   Martha C. Theis           $500,000 to        $1 Million to
                             $1 Million         $10 Million

A. The Solvit Group, LLC's Five Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Caligaro & Meyering P.C.         Legal Services          $476,708
20600 Eureka Road
Suite 900
Taylor, MI 48180

The Allen Richmond Fund          Loan                     $82,354
20600 Eureka Road, Suite 900
Taylor, MI 48180-0815

Louis Copciac                    Management Services      $40,000
496 Park Street
Deerfield, MI 49238

Darnell & Meyering               Acctg. & Tax Services     $2,724
20600 Eureka Road, Suite 900
Taylor, MI 48180

Guardian Automotive Trim, Inc.   Jury Verdict of          Unknown
c/o Thomas F. Campbell           $88,510, Oakland
Fausone, Taylor & Bohn, LLP      County, Circuit Court,
41820 West Six Mile Road         Case No. 04-061318-CB
Suite 103
Northville, MI 48168

B. Martha C. Theis' Seven Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Caligaro & Meyering P.C.         Legal Services          $476,708
20600 Eureka Road
Suite 900
Taylor, MI 48180

The Allen Richmond Fund          Guaranteed Loan to       $97,776
20600 Eureka Road, Suite 900     Can Do Mechanical, LLC
Taylor, MI 48180-0815

                                 Guaranteed Loan to       $82,354
                                 The Solvit Group, LLC

Estate of James Gabbert          Promissory Note         $134,002
c/o Frank Gabbert
35773 Castlewood Court
Westland, MI 48185

Huntington Bank                  Real Estate              $80,000
P.O. Box 182387
Columbus, OH 43218-2387

Chrysler Financial               2005 Jeep Laredo         $18,200
P.O. Box 5500
Detroit, MI 48255

Guardian Automotive Trim, Inc.   Jury Verdict of          Unknown
                                 $632,242

Michigan Tractor and             Equipment Guaranty       Unknown
Machinery Co.


SPEEDEMISSIONS INC: Has $538K Working Capital Deficit at June 30
----------------------------------------------------------------
Speedemissions, Inc., earned a $79,104 net income on $2,375,261 of
revenue during the second quarter ending June 30, 2006, the
Company disclosed in a Form 10-QSB report filed with the
Securities and Exchange Commission.

As of June 30, 2006, the Company's balance sheet showed
$10,051,121 in assets and $9,023,090 in liabilities.  As of
June 30, 2006, the Company has $489,873 in current assets to pay
for $1,028,031 in current debts.

Michael Shanahan, the Company's Chief Financial Officer, said that
historically, the Company has not generated sufficient cash flow
from operations to fund growth as it continued to acquire and open
new emission testing stations.   However, operations for the last
six months have generated sufficient profits to cover operating
expenses, and it used some of these profits to generate organic
growth.  If the Company can successfully complete one or more
acquisitions of profitable businesses, then the Company
anticipates that it may be able to operate at a profitable level
on a consistent basis.  Until that time, however, and to complete
the acquisitions, the Company will need to raise additional
capital through the sale of our equity securities and or through
debt financing to continue implementation of our growth strategy.

A full-text copy of the regulatory filing is available for free at
http://ResearchArchives.com/t/s?1111

                        Going Concern Doubt

Tauber & Balser, P. C., the Company's auditor, expressed
substantial doubt about the Company's ability to continue as a
going concern after auditing the Company's financial statement for
the year ending Dec. 31, 2005.  The auditor pointed to the
Company's recurring losses from operations, operating cash flow
deficiencies and limited capital resources.

                       About Speedemissions

Speedemissions, Inc. -- http://www.speedemissions.com/-- operates  
34 vehicle emissions testing stations and four mobile units in
three separate markets, greater Atlanta, Georgia Houston, Texas
and greater Salt Lake City, Utah.  It has a new store under
construction in both the Atlanta and Houston markets.  


SPORTS ENTERTAINMENT: Case Summary & 19 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Sports Entertainment Centers, LLC
        11432 Motor Yacht Circle North
        Jacksonville, FL 32225

Bankruptcy Case No.: 06-02689

Chapter 11 Petition Date: August 31, 2006

Court: Middle District of Florida (Jacksonville)

Judge: Jerry A. Funk

Debtor's Counsel: Robert D. Wilcox, Esq.
                  Wilcox Law Firm
                  6817 Southpoint Parkway, Suite 1302
                  Jacksonville, FL 32216
                  Tel: (904) 281-0700
                  Fax: (904) 513-9201

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 19 Largest Unsecured Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
U.S. Department of Treasury        Taxes                  $30,000
400 West Bay Street
Jacksonville, FL 32202

Florida Department of Revenue      Tax                    $28,000
921 North Davis Street, Suite 250A
Jacksonville, FL 32209-6825

JEA                                Utility Service        $25,000
21 West Church Street
Jacksonville, FL 32202

Power Electric                     Construction Services  $19,365
7300 Beach Boulevard
Jacksonville, FL 32216

TECO Gas                           Utility Service        $17,880
P.O. Box 31017
Tampa, FL 33631-3017

U.S. Foods                         Supplier               $17,746

Ray Fox                            Uniform Services       $16,011

Jacksonville Steel Products                               $12,500

RWP Engineering                    Engineering Services   $10,367

Preston Napier                     Loan                   $10,000

B & B Restaurant Equipment         Equipment               $8,000

Florida Department of Revenue      Unemployment Tax        $7,881

Hartford Insurance                                         $5,074

ALSCO                              Supplies                $3,200

Four Seasons Air Conditioning                              $2,794

Department of Bus. & Prof. Reg.    Alcohol Taxes             $646

ASCAP                              Music Services            $531

Atlantic Pest Solutions            Pest Services             $192

Advanced Disposal Systems          Services               Unknown


TEEKAY SHIPPING: S&P Puts BB+ Corp. Credit Rating on Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
the 'BB+' corporate credit rating, on Teekay Shipping Corp. on
CreditWatch with negative implications.

"The CreditWatch listing follows Teekay's announcement that it
plans to make a tender offer for Petrojarl ASA, a Norwegian-based
operator of floating production storage and offloading units,"
said Standard & Poor's credit analyst Eric Ballantine.

The company has not yet announced how it intends to fund the
transaction, but Teekay has significant availability under its
revolving credit facility.

The acquisition of Petrojarl would further expand Teekay's
shipping business, which includes oil tankers, shuttle tankers,
and LNG vessels.  Petrojarl operates four FPSO's, two shuttle
tankers, and one storage tanker.  FPSO units engage in the
production, processing, and storage of oil from sub-sea oilfields.
Petrojarl's units operate in the North Sea.

Petrojarl's annual revenue is around $300 million and its market
capitalization is slightly more than $800 million.  Although
Teekay currently has around 40% of Petrojarl's stock, there are
other major shareholders and a bidding war is possible.

Ratings on Vancouver, B.C.-based Teekay reflect its participation
in the competitive, volatile, highly fragmented, and fixed-
capital-intensive bulk shipping industry, combined with an
aggressive growth strategy, new vessel construction program, and
an increasingly shareholder-friendly financial policy.

Positive credit factors include:

   * the company's solid business position as the leading midsize
     Aframax crude-oil tanker operator;

   * strong market share in the shuttle tanker markets; and

   * a growing liquefied natural gas business.

Teekay has been increasing its fixed-rate business and this
acquisition should continue this trend.

Standard & Poor's expects to meet with Teekay's management team to
review the proposed transaction and funding requirements.  Teekay
has been acquisitive in the past, levering up the company;
however, it has focused on debt reduction after significant
acquisitions.

Depending on how the transaction is funded, ratings outcomes could
include an affirmation at the current rating and either a stable
or negative outlook.  However, if it appears that the transaction
will weaken the company's financial profile materially a modest
one-notch downgrade is possible.


TERAFORCE TECH: Lawyers Can't Bill for Defending Final Fee App.
---------------------------------------------------------------
In a decision published at 2006 WL 2403563, the Honorable Barbara
J. Houser of the U.S. Bankruptcy Court for the Northern District
of Texas says that counsel should not normally be able to recover
fees for defending a fee application in the bankruptcy court,
given that the American Rule applies absent explicit statutory or
contractual authority, and that the Bankruptcy Code contains no
statutory provision for the recovery of attorney fees for
defending a fee application.  Thus, Judge Houser ruled, Locke
Liddell & Sapp LLP -- the law firm representing the unsecured
creditors committee in Teraforce Technology Corporation's Chapter
11 cases -- can't recover the fees that it incurred in defending
its final fee application.  The Bankruptcy Court noted that the
objections to Locke Liddell's application were filed in good
faith, and were meritorious in significant part.

Headquartered in Richardson, Texas, Teraforce Technology
Corporation -- http://teraforcetechnology.com/-- markets the  
products and services of its affiliate, DNA Computing Solutions,
Inc.  DNA Computing -- http://www.dnacomputingsolutions.com/--
designs, produces and sells board-level products that deliver high
performance computing capabilities for embedded applications in
the military/aerospace, industrial, and commercial market sectors.
Davor Rukavina, Esq., at Munsch, Hardt, Kopf & Harr, PC,
represents the Debtors in their restructuring efforts.  The
Company and its affiliate filed for chapter 11 protection on
Aug. 3, 2005 (Bankr. N.D. Tex. Case Nos. 05-38756 & 05-38757).
When the Debtors filed for protection from their creditors, they
listed assets totaling $4,338,000 and debts totaling $14,269,000.  
The Bankruptcy Court confirmed the Fourth Amended chapter 11 plan
filed by Teraforce Technology Corporation and its wholly owned
subsidiary, DNA Computing Solutions, Inc., along with their
secured creditor, the Bean Group, in April 2006.


TITAN FINANCIAL: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Titan Financial Group II, LLC
        303 Peachtree Street, Suite 4100
        Atlanta, GA 30308
        Tel: (404) 572-7200

Bankruptcy Case No.: 06-70852

Debtor-affiliates filing separate chapter 11 petitions:

      Entity                                       Case No.
      ------                                       --------
      III Creek Financial Group, Inc.              06-70854
      Capital Loan Company of Gainesville, Inc.    06-70855
      Delta Management of Aiken, Inc.              06-70856
      Berrien Financial Services, Inc.             06-70858
      Citizens Finance of Macon, Inc.              06-70859
      Titan Financial Group, LLC                   06-70861
      Titan Financial Group Louisiana, LLC         06-70862
      Titan Financial Group Texas I, LLC           06-70863
      Titan Financial Group Texas II, L.P.         06-70866
      Titan Financial Group Georgia, LLC           06-70867
      Titan Financial Group South Carolina, LLC    06-70869

Type of Business: Titan Financial provides standard installment
                  loans and serves approximately 80,000 customers
                  through its 125 retail branches across Georgia,
                  South Carolina and Texas.  In addition to loans,
                  Titan Financial provides credit insurance
                  products, income tax preparation services, auto
                  club memberships, direct deposit services for
                  government assistance and payroll recipients,
                  and prepaid communication services.

Chapter 11 Petition Date: September 3, 2006

Court: Northern District of Georgia (Atlanta)

Debtors' Counsel: Amy Edgy Ferber, Esq.
                  Paul K. Ferdinands, Esq.
                  Sarah R. Borders, Esq.
                  King & Spalding, LLP
                  1180 Peachtree Street
                  Atlanta, GA 30309
                  Tel: (404) 572-4600
                  Fax: (404) 572-5129
                  http://www.kslaw.com/

Debtors'
Financial
Advisors:         Brookwood Associates, LLC
                  3525 Piedmont Road Northeast
                  5 Piedmont Center, Suite 415
                  Atlanta, GA 30305
                  Tel: (404) 874-7433
                  Fax: (404) 564-5101
                  http://www.brookwoodassociates.com/

Debtors' Claims
and Balloting
Agent:            Administar Services Group, Inc.
                  8475 Western Way, Suite 110
                  Jacksonville, FL 32256
                  Tel: (904) 807-3000
                  Fax: (904) 807-3030
                  http://www.administar.net/

Estimated Assets: $10 Million to $50 Million

Estimated Debts:  $10 Million to $50 Million

Debtors' Consolidated List of their 20 Largest Unsecured
Creditors:

   Entity                          Nature of Claim   Claim Amount
   ------                          ---------------   ------------
Brad E. & Robin R. Bylenga         Subordinated Debt   $6,621,946
9 Longview Terrace
Greenville, SC 29605
Tel: (864) 672-2787

Citizens Reinsurance Ltd. and      Contract            $1,919,705
Delta Boone Life Ins. Co. Ltd.
P.O. Box 907670
Gainesville, GA 30501
c/o Bennie E. Hewett
Tel: (770) 519-0082

Life of Georgia Reinsurance, Ltd.  Contract            $1,073,265
P.O. Box 907670
Gainesville, GA 30501
c/o Bennie E. Hewett
Tel: (770) 519-0082

Life of the South Corporation      Senior              $1,000,000
100 West Bay Street                Subordinated
Jacksonville, FL 32202             Debt
c/o W. Dale Bullard
Tel: (904) 350-9660

Lyndon Financial Corporation       Senior                $983,165
100 West Bay Street                Subordinated
Jacksonville, FL 32202             Debt
c/o W. Dale Bullard
Tel: (904) 350-9660

Roy Merritt                        Subordinated Debt     $384,254
Route 3, P.O. Box 95
Blakely Highway #27
Cuthbert, GA 39840
Tel: (229) 732-3193

Kenneth E. Hoerr                   Subordinated Debt     $250,000
9619 North Route 91
Peoria, IL 61615
Tel: (309) 243-7750

Darlene Hoerr                      Subordinated Debt     $250,000
9619 North Route 91
Peoria, IL 61615
Tel: (309) 243-7750

Life of the South                                         $87,161

Rogers & Hardin                                           $61,054

John Kinney                        Subordinated Debt      $50,000

McGladrey & Pullen, LLP            Trade                  $19,100

BellSouth                          Trade                  $10,424

Vertex                             Trade                   $8,126

Office Depot                       Trade                   $5,554

AT&T                               Trade                   $3,384

Windstream                         Trade                   $2,561

Georgia Power Company              Trade                   $2,538

SCE&G                              Trade                   $2,298

TXU Energy                         Trade                   $1,134


ULTRACHIP SYSTEMS: June 30 Balance Sheet Upside-Down by $8.5 Mil.
-----------------------------------------------------------------
UltraStrip Systems, Inc., incurred a $1,541,724 net loss on
$13,640 of net revenues for the three months ended June 30, 2006,
compared to a $1,531,342 net loss on $5,853 of net revenues in
2005.

At June 30, 2006, the Company's balance sheet showed $1,818,542 in
total assets and $10,342,019 in total liabilities, resulting in a
$8,505,477 stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $1,667,877 in total current assets available to pay
$6,060,442 in total current liabilities coming due within the next
12 months.

A full-text copy of the Company's financial statements for the
three months ended June 30, 2006, is available for free
At http://researcharchives.com/t/s?1101

                        Going Concern Doubt

As reported in the Troubled Company Reporter on June 1, 2006,
Tedder, James, Worden & Associates, P.A., in Orlando, Florida,
raised substantial doubt about UltraStrip Systems, Inc.'s ability
to continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's working capital
deficit and losses from operations.

                          About UltraStrip

UltraStrip Systems, Inc. -- http://www.ultrastrip.com/-- is a  
water-engineering firm that develops and sells patented equipment
to provide solutions to environmental problems.  The Company's
Mobile Water Filtration Systems, provided through its Ecosphere
Technologies subsidiary -- http://www.ecospheretech.com/--  
provides a solution to use its powerful water-filtration and
purification technology in the world's most challenging
applications, both in developing regions, and in areas hit by man-
made or natural events that damage vital water resources.  


VITAL LIVING: Earns $401,000 in Quarter Ended June 30
-----------------------------------------------------
Vital Living Inc. earned $401,000 on $1,349,000 of net revenues
for the second quarter ending June 30, 2006, the Company disclosed
on a Form 10-QSB report filed with the Securities and Exchange
Commission.

As of June 30, 2006, the Company's balance sheet showed $4,975,000
in assets and $4,743,000 in liabilities.  The Company's equity
position went from a $495,000 deficit at Dec. 31, 2005, to a
$232,000 positive equity at June 30, 2006.
       
At June 30, 2006, the Company had $66,000 cash.  Cash used in
operating activities was $126,000.  According to Gregg A. Linn,
the Company's chief financial officer, the Company expects to fund
its on-going business activities from the cash generated through
continuing operations.

A full-text copy of the regulatory filing is available for free
at http://ResearchArchives.com/t/s?110b

                        Going Concern Doubt

As reported in the Troubled Company Reporter on May 12, 2006,
Epstein Weber & Conover, PLC, expressed substantial doubt about
Vital Living, Inc.'s financial statements for the years ended
Dec. 31, 2005 and 2004.  The auditing firm pointed to the
Company's recurring losses from operations, working capital
deficit and dependence on funding sources other than operations.

                        About Vital Living

Headquartered in Phoenix, Arizona, Vital Living Inc. --
http://www.vitalliving.com/-- develops nutritional and
nutraceutical products which are marketed for distribution through
physicians and licensed or certified health care professionals.


WELD WHEEL: Asset Sale Hearing Set for September 25
---------------------------------------------------
The Honorable Jerry W. Venters of the U.S. Bankruptcy Court for
the Western District of Missouri in Kansas City has approved
bidding procedures governing the proposed sale of Weld Wheel
Industries, Inc., and its debtor-affiliates' assets to American
Racing Equipment, Inc.  American Racing is offering to buy
substantially all of the Debtors' assets, free and clear of liens,
for $17 million.

The anticipated sale to American Racing is subject to higher and
better offers at an auction scheduled at 10:00 a.m., on Sept. 25,
2006.  The auction will be conducted at the offices of Bryan Cave
LLP, One Kansas City Place, 1200 Main Street, Suite 3500 in Kansas
City, Missouri.  Objections to the proposed sale must be filed by
5:00 p.m., Central Daylight Time, on Sept. 13, 2006.  

Competing bids, which should at least be $18 million, will be
accepted until 5:00 p.m. Central Daylight Time, on Sept. 20, 2006.  
All bids must be submitted to:

     Ralph Rice
     Weld Racing, Inc.
     6600 Stadium Drive,
     Kansas City, MO 64129

     with a copy to:

     Murray Lessinger
     White Oak Capital Advisors, LLC
     Two Northfield Plaza, Suite 215,
     Northfield, IL 60093.

Potential bidders may obtain copies of the Purchase Agreement
from:
   
     Cynthia Dillard Parres, Esq.
     Bryan Cave LLP,
     One Kansas City Place,
     1200 Main Street, Suite 3500,
     Kansas City, MO 64105
     Phone: 816-374-3274

American Racing is entitled to a $400,000 breakup fee if it fails
to purchase the assets at the auction.  In addition, American
Racing is also entitled to reimbursement of expenses in the amount
of $250,000.

A copy of the Bid Procedures governing the sale of the
Debtors' assets is available for free at:

                http://researcharchives.com/t/s?110f

Weld Wheel Industries, Inc. -- http://www.weldracing.com/--
manufactures forged alloy wheels to enhance the performance and
appearance of racecars, off-road trucks, luxury pickups, SUV's,
premium motorcars, customs, hot rods, and motorcycles.  Weld Wheel
and its two debtor-affiliates filed for Chapter 11 protection on
Aug. 17, 2006 (Bankr W.D. Mo. Case No. 06-42105). Cynthia Dillard
Parres , Esq., and Laurence M. Frazen, Esq., at Bryan Cave LLP,
represents the Debtors.  The Official Committee of Unsecured
Creditors is represented by Lisa A. Epps, Esq., at Spencer Fane
Britt & Browne LLP.  When the Debtor sought protection from its
creditors, it estimated its assets and debts at $10 to
$50 million.


WHERIFY WIRELESS: Expands Brazilian Distribution with Delphi
------------------------------------------------------------
Wherify Wireless, Inc., reported the addition of Delphi Corp. to
its Brazilian team to enhance and accelerate the deployment of
Wherify-enabled personal communications and GPS location/safety
services in Brazil.  Delphi has assumed distribution rights for
Wherify's Wherifone in Brazil from American Networks Computadores
and has placed an order for initial units.  American Network
Computadores maintains its local service provider status while
Wherify will provide the core location management and mapping
support from its Global Location Services Center.  Wherify will
receive recurring revenue for each unit in service in Brazil.

"We're very pleased to have Delphi's support in the deployment of
Wherify-enabled location and communications services in Brazil,"
said Timothy Neher, Founder and CEO of Wherify. "Delphi is a well
established player with major distribution resources.  We
anticipate that their expertise, experience and market reach will
enhance our launch efforts and make Brazil a global leader in
personal location services."

"Delphi has extensive experience in taking mobile electronics
products to market successfully, both at the enterprise and
consumer level.  The Wherifone is a natural fit for our portfolio
and furthers our interests in providing cutting-edge mobile
services to our customers," said Edson Brasil, Managing Director
of Delphi Brazil.

"The combination of voice and GPS-enabled location-based services
presents us with a very interesting opportunity, and we're looking
forward to working with American Networks and Wherify to bring the
benefits of vehicle location and personal safety services to
Brazil."

"Delphi is a great addition to our team and will play a major role
in our success," said Samir Couri, Director of Technologies of
American Network. "Delphi has a supplier relationship with
thousands of retailers in the mobile electronics and IT
industries.  As a major supplier of hospital and home medical
equipment, they are also well positioned to bring the benefits of
Wherify's technology to the Brazilian health care industry."

                           About Wherify

Based in Redwood Shores, California, Wherify Wireless, Inc., --
http://www.wherifywireless.com/-- develops patented wireless  
location products and services for family safety, communications,
and law enforcement.  The company's portfolio of intellectual
property includes its proprietary integration of the US
Government's Global Positioning System and wireless communication
technologies; its patented back-end location service; the
Wherifone(TM) GPS locator phone which provides real-time location
information and lets families with pre-teens, seniors, or those
with special needs, stay connected and in contact with each other;
and its FACES(R) industry-leading facial composite technology,
which is currently being used by thousands of public safety
agencies worldwide.

                        Going Concern Doubt

Malone & Bailey, PC, expressed substantial doubt about Wherify's
ability to continue as a going concern after it audited the
Company's financial statements for the fiscal year ended June 30,
2005.  The auditing firm pointed to the Company's recurring losses
from operations and insufficient working capital to meet its
operating needs.


WINN-DIXIE: Court Extends Exclusive Solicitation Period to Oct. 31
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Middle District of Florida
extended Winn-Dixie Stores, Inc., and its debtor-affiliates'
exclusive period to solicit acceptance of their plan of
reorganization to the earlier of:

   (a) the entry of an order confirming the Plan; or

   (b) October 31, 2006.

As reported in the Troubled Company Reporter on Aug. 25, 2006, the
Debtors sought an extension of their exclusive solicitation
period to ensure that they are able to complete the solicitation
process without the risk of distractions resulting from any
party's efforts to take advantage of the termination of the
exclusive solicitation period.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.  
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Wants to Assume 62 Agreements With IBM Entities
-----------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Middle District of Florida
to assume 62 leases and contracts with IBM Corporation, IBM Credit
LLC, and Ascential Software Corporation.

The Debtors lease computer hardware and obtain various software,
maintenance, and support services vital to their information
technology needs from the IBM Entities.

According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey,
in Jacksonville, Florida, the Debtors have negotiated with the
IBM Entities as to the terms of the assumption of the Leases and
Contracts.  The parties agree that:

   (1) The Debtors will move to assume the Leases and Contracts
       under Section 365 of the Bankruptcy Code;

   (2) If they have not done so, the Debtors will return to the
       IBM Entities 26 leased servers used in stores that have
       been closed by the Debtors.  Any of the Leases and
       Contracts that separately govern the returned servers will
       be terminated by agreement of the parties.  IBM Credit
       will be granted an unsecured claim for $66,883 on account
       of the servers;

   (3) Claim No. 13235 asserted by IBM Corp. for $2,535,561
       against the Debtors for non-payment of prepetition sums
       due under the Leases and Contracts will be allowed, while
       Claim No. 2058, asserting $2,279,605, will be disallowed;

   (4) Claim No. 13245 filed by IBM Credit for $1,659,098 will be
       deemed amended to include the $66,883 account for the
       servers, and will be allowed in the increased amount of
       $1,725,981.  Claim No. 4215, asserting $14,052,843, will
       be disallowed;

   (5) Claim No. 9926 filed by Ascential for $131,052 will be
       allowed in its Court-reduced amount of $48,158;

   (6) The Debtors will pay any delinquent postpetition amounts
       owed under the Leases and Contracts to the IBM Entities,
       as applicable, within 10 days following approval of the
       assumption;

   (7) The IBM Entities will facilitate assumption of the Leases
       and Contracts by agreeing that:

       (a) the Debtors will not be required to pay the
           prepetition claims as cure under Section 365(b)(1)(A)
           of the Bankruptcy Code;

       (b) the requirements of Section 365 as they relate to any
           prepetition defaults will be waived in full by the IBM
           Entities;

       (c) the prepetition claims will not have administrative
           expense status as a result of the assumption of the
           Leases and Contracts or for any other purpose; and

       (d) the prepetition claims will retain the status of
           prepetition unsecured non-priority claims; and

   (8) The waiver of cure payments will not negate the impact of
       assumption on any claims held by the Debtors against the
       IBM Entities.  To avoid doubt, upon assumption of the
       Lease and Contracts, the Debtors will waive all rights
       they may otherwise have to preference claims or other
       claims or rights under Sections 544, 545, 547, 548 or 553
       of the Bankruptcy Code against the IBM Entities.

Contingent upon Court approval of the request, the parties are
negotiating to replace two leased mainframes with one new
mainframe that will increase operating capacity by up to 30% and
reduce the Debtors' lease costs by nearly $93,000 per month.       

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.  
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


YOUTHSTREAM MEDIA: Appoints John Scheel as President and CEO
------------------------------------------------------------
YouthStream Media Networks, Inc., appointed John Scheel, the
general manager of the Company's steel mini-mill in Ashland,
Kentucky, as president and chief executive officer

The Company disclosed that the resignations of Jonathan V. Diamond
as president and chief executive officer, and Robert N. Weingarten
as chief financial officer and secretary became effective Aug. 31,
2006.  James M. Lane also resigned from the board of directors
effective Aug. 31, 2006.

               Board Chairman and CFO Appointments

Donald Reisenberg, the controller of the steel mini-mill, was
appointed chief financial officer and secretary.

Jess M. Ravich, a current director, was appointed chairman of the
board of directors.

The Company also disclosed that its board of directors expressed
its appreciation to Mr. Diamond and Mr. Weingarten for their
having successfully managed and orchestrated a complex turnaround
and restructuring process since Jan. 2003, including the
disposition of the Company's previous business operations in Feb.
2004 and the acquisition of the Company's controlling interest in
a steel mini-mill in March 2005.  In particular, its board of
directors noted that, for the first time in the its history, the
Company has recently reached profitability on a consolidated
basis.

                 About YouthStream Media Networks

YouthStream Media Networks, Inc., (OTC: YSTM) owns and operates
Kentucky Electric Steel.  It is a steel mini-mill located in
Ashland, Kentucky.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on July 5, 2006
Weinberg & Company, P.A., in Los Angeles, Calif., raised
substantial doubt about YouthStream Media Networks, Inc.'s ability
to continue as a going concern after auditing the Company's
consolidated financial statements for the years ended Sept. 30,
2005, and 2004.  The auditor pointed to the Company's losses;
negative cash flow from operations; negative working capital; and
accumulated and stockholders' deficiencies.


ZALE CORP: Incurs $26.4 Million Net Loss for Quarter ended July 31
------------------------------------------------------------------
Zale Corporation reported a net loss of $26.4 million for the
fourth fiscal quarter ended July 31, 2006.

The loss includes a mostly non-cash after-tax charge of
$23.9 million.  For the same period last year, the Company
reported net earnings of $4.1 million.

Total revenues for the fourth quarter increased by 3.9% to
$490.7 million compared to last year's total revenue of $472.3
million.

"Our fourth quarter results, excluding the charges, were on plan,"
Betsy Burton, president and chief executive officer, commented.
"We had better than expected top line growth in the Zales brand,
offset by lower gross margins due to increased clearance."

Net earnings for fiscal year 2006 were $54.5 million versus net
earnings of $106.8 million for the same period last year.

For the full fiscal year, total revenues increased 2.3% to
$2.439 billion, compared to $2.383 billion for the prior fiscal
year and includes $24.3 million and $49.8 million, respectively,
from the closed Bailey Banks & Biddle stores.

Headquartered in Irving, Texas, Zale Corporation (NYSE: ZLC)
-- http://www.zalecorp.com/-- is North America's largest  
specialty retailer of fine jewelry operating approximately 2,345
retail locations throughout the United States, Canada and Puerto
Rico.  Zale Corporation's brands include Zales Jewelers, Zales
Outlet, Gordon's Jewelers, Bailey Banks & Biddle, Peoples
Jewellers, Mappins Jewellers and Piercing Pagoda.  Through its ZLC
Direct organization, Zale also operates online at
http://www.zales.com/and http://www.baileybanksandbiddle.com/    

                           *     *     *

As reported in the Troubled Company Reporter on April 12, 2006,
Zale Corporation reported that the Securities and Exchange
Commission initiated a non-public investigation relating to
various accounting and other matters related to the Company,
including accounting for extended service agreements, leases, and
accrued payroll.

Subpoenas issued in connection with the SEC investigation ask for
materials relating to these accounting matters as well as to
executive compensation and severance, earnings guidance, stock
trading, and the timing of certain vendor payments.

Zale believes that its accounting complied with generally accepted
accounting principles and is reviewing the matter.  The Company
will cooperate fully with the SEC's investigation.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------  
                                Total  
                                Shareholders  Total     Working  
                                Equity        Assets    Capital  
Company                 Ticker  ($MM)          ($MM)     ($MM)  
-------                 ------  ------------  -------  --------  
Abraxas Petro           ABP         (21)         132       (6)
AFC Enterprises         AFCE        (46)         172        5
Alaska Comm Sys         ALSK        (17)         565       24
Alliance Imaging        AIQ         (23)         682       26
AMR Corp.               AMR        (508)      30,752   (1,392)
Atherogenics Inc.       AGIX       (124)         211      165
Biomarin Pharmac        BMRN         49          469      307
Blount International    BLT        (123)         465      126
CableVision System      CVC      (2,468)      12,832    2,643
Centennial Comm         CYCL     (1,062)       1,436       23
Cenveo Inc              CVO          24          941      128
Choice Hotels           CHH        (118)         280      (58)
Cincinnati Bell         CBB        (705)       1,893       18
Clorox Co.              CLX        (156)       3,616     (123)
Cogdell Spencer         CSA         126          370      N.A.
Columbia Laborat        CBRX         10           29       23
Compass Minerals        CMP         (63)         664      161
Crown Holdings I        CCK         144        7,287      174
Crown Media HL          CRWN       (393)       1,018      133
Deluxe Corp             DLX         (90)       1,330     (235)
Denny's Corporation     DENN       (258)         500      (68)
Domino's Pizza          DPZ        (609)         395       (4)
Echostar Comm           DISH       (512)       9,105    1,589
Emeritus Corp.          ESC        (111)         721      (29)
Emisphere Tech          EMIS          2           43       19
Empire Resorts I        NYNY        (26)          62       (3)
Encysive Pharm          ENCY        (64)          93       56
Foster Wheeler          FWLT        (38)       2,224      (93)
Gencorp Inc.            GY          (88)         990      (28)
Graftech International  GTI        (166)         900      250
H&E Equipment           HEES        226          707       22
I2 Technologies         ITWO        (55)         211       (9)
ICOS Corp               ICOS        (36)         266      116
IMAX Corp               IMAX        (21)         244       33
Incyte Corp.            INCY        (55)         375      155
Indevus Pharma          IDEV       (147)          79       35
J Crew Group Inc.       JCG         (83)         362      102
Koppers Holdings        KOP         (95)         625      140
Kulicke & Soffa         KLIC         65          398      230
Labopharm Inc.          DDS         (92)         143      105
Level 3 Comm. Inc.      LVLT        (33)       9,751    1,333
Ligand Pharm            LGND       (238)         286     (155)
Lodgenet Entertainment  LNET        (66)         262       15
Maytag Corp.            MYG        (187)       2,954      150
McDermott Int'l         MDR         125        3,181       64
McMoran Exploration     MMR         (21)         434      (38)
NPS Pharm Inc.          NPSP       (164)         248      168
New River Pharma        NRPH          0           93       68
Omnova Solutions        OMN          (6)         366       67
ON Semiconductor        ONNN        (75)       1,423      279
Qwest Communication     Q        (2,826)      21,292   (2,542)
Riviera Holdings        RIV         (29)         214        7
Rural/Metro Corp.       RURL        (93)         302       50
Sepracor Inc.           SEPR       (109)       1,277      363
St. John Knits Inc.     SJKI        (52)         213       80
Sulphco Inc.            SUF          25           34       12
Sun Healthcare          SUNH         10          523      (34)
Sun-Times Media         SVN        (261)         965     (324)
Tivo Inc.               TIVO        (33)         143       19
USG Corp.               USG        (313)       5,657   (1,763)
Vertrue Inc.            VTRU        (16)         443      (72)
Weight Watchers         WTW        (110)         857      (72)
WR Grace & Co.          GRA        (515)       3,612      929

                             *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.  
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marie Therese V. Profetana, Robert Max Victor M. Quiblat II,
Shimero R. Jainga, Joel Anthony G. Lopez, Emi Rose S.R. Parcon,
Rizande B. Delos Santos, Cherry A. Soriano-Baaclo, Christian Q.
Salta, Jason A. Nieva, Lucilo M. Pinili, Jr., Tara Marie A. Martin
and Peter A. Chapman, Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $725 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

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