TCR_Public/060913.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

          Wednesday, September 13, 2006, Vol. 10, No. 218

                             Headlines

ACCESS WORLDWIDE: June 30 Balance Sheet Upside-Down by $7.6 Mil.
ACE CASH: Moody's Assigns Junk Rating on Senior Unsecured Notes
ADVOCACY & RESOURCES: Creditor Wants to Reclaim Unpaid Goods
AEROSYSTEMS INC: Strong Performance Cues Moody's to Lift Ratings
AES CORP: Selling 33% Stake in Eletropaulo Metropolitana

AIRBASE SERVICES: Regent Aero Has Until Oct. 27 Decide on Leases
ALLIED HOLDINGS: McConells Can Schedule Suit on Trial Calendar
AMERIVISION COMMS: Dataprose Production Contract Deemed Rejected
ARTIFICIAL LIFE: June 30 Balance Sheet Upside-Down by $4.2 Million
ASARCO LLC: Wants AMC's Objection to Escrow Pact Overruled

ASARCO LLC: Creditors' Panel Wants Tax Sharing Pact Decided Later
ASSOCIATED MATERIALS: Earns $16.3 Mil. in Second Qtr. Ended July 1
AZUR HOLDINGS: Baum & Co. Expresses Going Concern Doubt
BGF INDUSTRIES: June 30 Balance Sheet Upside-Down by $37.6 Million
BURGER KING: Improving Performance Prompts S&P's Rating Upgrade

CATHOLIC CHURCH: Spokane Prepared to Amend Plan If Mediation Fails
CERADYNE INC: Receives $1.5 Million Transnuclear Initial Order
COLLINS & AIKMAN: Customers Oppose Committee's Planned Inquiries
COLLINS & AIKMAN: Selling De Minimis Assets to Various Parties
CONSTAR INT'L: Moody's Lifts Rating on $175 Million Senior Note

CRITTENDEN MEMORIAL: S&P Lowers Series 2000 Debt's Rating to B+
DANA CORP: Court Denies Sypris' Request to Compel Pact Decision
DANA CORP: David Browning Wants Stay Lifted to Prosecute Action
DANA CORP: U.S. Trustee Amends Non-Union Retiree Committee Members
DAVIDSON DIVERSIFIED: Equity Deficit Widens to $8.4MM at June 30

DE LA ROSA: Case Summary & 20 Largest Unsecured Creditors
DELPHI CORP: Pick Me, Equity Committee Tells Court
DELPHI CORP: Court Records About 100 Claim Transfers in August
DURA AUTOMOTIVE: Defers Dividend Payment on Preferred Securities
EASTMAN KODAK: Signs Multi-Year Kiosk Contract with Wal-Mart

EDDIE BAUER: To Open Stores in Georgia, Pennsylvania & California
ELEC COMMUNICATIONS: Withdraws Offer to Buy Liberty Bell Telecom
FALCON AIR: Ch. 11 Trustee Wants Until Dec. 6 to Decide on Leases
FLEETWOOD ENT: Weak Demand Prompts Moody's to Downgrade Ratings
GRACE ASSOCIATES: Case Summary & Largest Unsecured Creditor

GRAY TELEVISION: High Leverage Prompts S&P's Negative Watch
GREAT COMMISSION: Court OKs Timothy Dixon as Special Bond Counsel
HAWS & TINGLE: Has Continued Cash Collateral Access Until Nov. 20
HAWS & TINGLE: Wants Veritas Advisory as Financial Consultant
HAYES LEMMERZ: S&P Affirms B- Rating & Removes Negative Watch

HECTOR DE LA ROSA: Voluntary Chapter 11 Case Summary
INSIGHT COMMS: Plans to Refinance $2.575 Billion Midwest Debt
INTERSTATE BAKERIES: Wants to Enter Into Intercompany Tolling Pact
INTERSTATE BAKERIES: Wants Preference & Adversary Actions Pursued
KMART CORP: Court Denies Request to Stay Discovery on Eagle Claims

KMART CORP: Striking Penn. Workers Negotiate for Better Contract
KRYSTAL POINT: Case Summary & 20 Largest Unsecured Creditors
LIGAND PHARMA: Sells Avinza to King Pharma for $313 Mil. in Cash
LIGAND PHARMA: Sells Oncology Product Line to Eisai for $205 Mil.
LINENS 'N THINGS: Posts $39.1 Mil. Net Loss in Qtr. Ended July 1

LONGYEAR HOLDINGS: Purchase Plan Cues Moody's to Hold Ratings
LUXELL TECH: Board Names Alec Couckuyt as Chief Executive Officer
MARK IV: Slow Cash Flow Cues S&P to Lower Corp. Credit Rating to B
MCMS INC: Claims Objection Deadline Stretched to February 14
MEDICAL ASSOCIATES: Case Summary & 19 Largest Unsecured Creditors

MERIDIAN AUTOMOTIVE: IRS Opposes Third Amended Joint Plan
MERIDIAN AUTOMOTIVE: Wants to Reject American Financial Lease
MONONGAHELA POWER: Moody's Concludes Review and Upgrades Ratings
MSO HOLDINGS: June 30 Balance Sheet Upside-Down by $10.9 Million
NATIONAL CENTURY: CSFB Trust Sets Sept. 21 as Distribution Date

NATIONAL CENTURY: Former VP Snoble Sentenced to 4-Yr. Imprisonment
NEOPLAN USA: Wants Court to Set Oct. 23 General Claims Bar Date
NORTH AMERICAN: Launches $60.4 Million Offering of 9% Senior Notes
OPBIZ LLC: S&P Downgrades Ratings to CCC+ With Negative Watch
PERFECTING NEW: Case Summary & 20 Largest Unsecured Creditors

RENFRO CORP: Moody's Rates Proposed $145 Million Sr. Loan at B2
RENFRO CORP: S&P Rates Proposed $145 Million Senior Loan at B
SAINT VINCENTS: Court Approves New York OAG Resolution Agreement
SAINT VINCENTS: Inks Management Agreements with Wyckoff Heights
SAINT VINCENTS: Court Approves Massey Knakal Sublease Pact

SANTA FE: Court Gives Nod on Stevens & Lee as Bankruptcy Counsel
SANTA FE: List of Eight Largest Unsecured Creditors
SATELITES MEXICANOS: Files Amended Plan and Disclosure Statement
SEDGWICK CMS: To Purchase All of Security Capital's Common Stock
SEDGWICK CMS: S&P Assigns B+ Loan Rating to $510 Million Debts

SERACARE LIFE: Board Appoints CEO Susan Vogt as Director
SERACARE LIFE: Taps Prolman Group to Provide Financial Services
SERACARE LIFE: Taps AccuVal Associates as Inventory Appraiser
SHERIDAN HOLDINGS: Proposed Funding Cues Moody's to Lower Ratings
SIERRA PACIFIC: Improved Performance Cues Moody's to Lift Rating

SILICON GRAPHICS: Objects to LG Electronics' Claims
SILICON GRAPHICS: Asks Court to Disallow Various Claims
SIMMONS CO: Moody's Hold Ratings and Revises Outlook to Positive
SOLUTIA INC: Equity Panel Wants Debtors' Intervention Role Limited
SOLUTIA INC: Court Okays Payment of $5 Mil. Settlement Installment

SPANISH BROADCASTING: Increasing Leverage Cues S&P's Neg. Watch
STAR TELECOMMS: D&O Litigation Settled for $2 Million
STATEWIDE REALTY: Voluntary Chapter 11 Case Summary
STONEVILLE PROPERTIES: Case Summary & Two Largest Creditors
STRATUS SERVICES: June 30 Stockholders' Deficit Narrows to $8 Mil.

THOMAS EQUIPMENT: Unit Completes $15 Mil. Funding with Greystone
TIME WARNER: Moody's Rates Proposed $700 Million Sr. Loan at Ba2
TRIPATH TECH: Agrees to Settle Litigation with Langley Partners
TURNSTONE SYSTEMS: June 30 Net Liquidation Assets Increased $87K
UNITED SUBCON: Moody's Junks Rating on $200 Million Term Loan

USINTERNETWORKING INC: Joins Forces with AT&T in $300 Million Deal
VERESTAR INC: Committee Wants Court Nod on Settlement Procedures
VISTEON CORP: S&P Affirms B+ Rating and Removes Negative Watch
VOLT INFORMATION: Earns $8.4 Million for the Quarter Ended July 30
WELD WHEEL: U.S. Trustee Names Seven-Member Creditors' Committee

WELD WHEEL: Creditors' Committee Taps Spencer Fane as Counsel
WINN-DIXIE: Judge Funk Approves Assumption of Seven Store Leases
WINN-DIXIE: Sells Harahan Warehouse Facility to Ackel for $6.75MM
WINN-DIXIE: Leesburg & Edgewood Bids Must be Received by Sept. 18
WORLDCOM INC: Court Dismisses Next Factors' Claims Against APCC

WORLDCOM: Court Okays Revised Notice on Louisiana Settlement Pact
WORLDCOM: La. Class Suit Counsel Can File Fee App. Until Sept. 28
XTREME COMPANIES: Equity Deficit at June 30 Widens to $9.7 Million
ZOND-PANAERO: Reports $291,000 Net Income in 2006 Second Quarter

* FTI Consulting to Acquire Financial Dynamics for $260 Million
* PricewaterhouseCoopers Launches U.S. Restructuring Practice

* Upcoming Meetings, Conferences and Seminars

                             *********

ACCESS WORLDWIDE: June 30 Balance Sheet Upside-Down by $7.6 Mil.
----------------------------------------------------------------
At June 30, 2006, Access Worldwide Communications Inc.'s balance
sheet showed total assets of $16,296,202 and total liabilities of
$23,925,167 resulting to a total stockholders' deficit of
$7,628,965.

The Company's balance sheet at June 30, 2006 also showed strained
liquidity with $11,261,270 in total current assets and $15,645,979
in total current liabilities.

For the three months ended June 30, 2006, the Company incurred
net loss of $1,673,013 from revenues of $9,755,920, compared to
a $690,452 net loss from $9,535,225 in revenues in three months
ended June 30, 2005.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?116d

Headquartered in Arlington, Virginia, Access Worldwide
Communications, Inc. (OTCBB: AWWC) -- http://www.accessww.com/--  
provides sales, communication and medical education services.
The Company has about 700 employees in offices throughout the
United States and the Philippines.


ACE CASH: Moody's Assigns Junk Rating on Senior Unsecured Notes
---------------------------------------------------------------
Moody's Investors Service assigned these first-time ratings to ACE
Cash Express, Inc.: a B3 Corporate Family Rating, a B3 senior
secured rating to the company's secured Term Loan B, and a Caa1
senior unsecured rating to the company's senior unsecured notes.
The assigned rating outlook is stable.

These ratings were assigned to ACE:

   * Corporate Family Rating -- B3
   * Senior Secured Rating -- B3
   * Senior Unsecured Rating -- Caa1
   * Outlook -- Stable

On June 6, 2006, JLL Partners, a New York-based private equity
firm, entered into a definitive agreement to acquire ACE for
$479.7 million in a leveraged buyout.  JLL will contribute
95.5% of the $179.7 million equity investment, while current
ACE management will contribute the remaining 4.5%. The remaining
$300 million will be funded by a $125 million secured Term Loan B
and $175 million of senior unsecured notes, both of which Moody's
is rating.

In Moody's opinion, ACE's B3 CFR reflects its strong operating
cash flow, an experienced management team, a strong competitive
presence in the U.S. market, strong risk management and
information systems infrastructure, and attractive industry growth
fundamentals.

The rating also reflects the firm's credit challenges, such
as substantial leverage and the negative tangible net worth
resulting from the significant goodwill and other intangibles
following the leveraged buy-out.  Debt to EBITDA will be
approximately 6 times, which would be substantially higher than
rated peers, while ACE's EBIT to interest expense at less than
2 times would be significantly weaker.  EBITDA margin is also
weaker than rated peers.  However, the credit strengths cited
above serve to offset these weaker financial measures.  Therefore,
ACE's CFR is at the same level as rated peer
firms.

Moody's also noted that the payday lending industry is exposed to
potential adverse payday lending-related regulation, legislation
and litigation and will remain so in the foreseeable future.
Additionally, ACE, like other check cashing and payday lending
institutions, deals with an inherently higher credit risk customer
base.

In Moody's view, asset coverage is not sufficient to support
an upward ratings lift to the secured Term Loan B relative to
Moody's assessment of the CFR of the company.  The Caa1 senior
unsecured rating takes into account its structurally subordinated
status to the secured debt.  Given the small proportion of
tangible assets in the company's asset structure following the
LBO, asset coverage for the secured debt in a distressed
scenario is expected to be modest and virtually non-existent
for the unsecured debt holder given their lower priority of claim.

If ACE decreases its substantial leverage burden, and is expected
to be sustained, this could result in upward rating pressure.

Material weakening of free cash flow, increased leverage or
material negative regulatory, legislative or litigation
developments could result in downward rating pressure.

ACE Cash Express, Inc. offers check cashing, payday lending, pre-
paid debit card and bill payment services along with various other
financial products.


ADVOCACY & RESOURCES: Creditor Wants to Reclaim Unpaid Goods
------------------------------------------------------------
American Flange & Manufacturing Co., Inc., creditor and party-in-
interest in Advocacy & Resources Corporation's chapter 11 case,
asks the U.S. Bankruptcy Court for the Middle District of
Tennessee for permission to reclaim the goods delivered to the
Debtor or in the alternative, file for administrative expense
priority claim amounting to $45,500.

On June 15, 2006, American Flange delivered to the Debtor various
goods in connection with the Debtor's business.  The Debtor failed
to pay the goods until it filed for bankruptcy.

Subsequent to the Debtor's chapter 11 filing, on June 30, 2006,
American Flange notified the Debtor that it intended to exercise
its rights under Section 546 of the Bankruptcy Code and wanted to
reclaim all goods delivered to the Debtor within the past 45 days.

American Flange contends that the Debtor purchased the goods in
the normal course of business while it was insolvent.

American Flange tells the Court that it has satisfied all of the
elements required under Section 546.  American Flange made written
demand for reclamation to the Debtor and their attorneys within 45
days after the Debtor received the goods or within 20 days after
the commencement of the Debtor's case.  American Flange claims
that the Debtor was in possession of the goods at the time they
received the notice of reclamation.

In addition, American Flange asks the Court to direct the Debtor
to abandon the questionable goods pursuant to Section 554(b) of
the Bankruptcy Code.  American Flange says that the cost of
maintaining the property far exceeds the ability of the property
to produce income, and the Debtor has no equity in the property,
thus, the Debtor should abandon the property.

Headquartered in Cookeville, Tennessee, Advocacy and Resources
Corporation is a non-profit corporation that manufactures food
products for feeding programs operated by the U.S. Government.
Customers include the U.S. Department of Agriculture, the
Department of Defense, and other private distribution firms.  The
Company filed for chapter 11 protection on June 20, 2006 (Bankr.
M.D. Tenn. Case No. 06-03067).  John Hayden Rowland, Esq., at
Baker Donelson Bearman Caldwell and Berkowitz, P.C., represents
the Debtor.  When the Debtor filed for chapter 11 protection, it
estimated assets and debts between $10 million and $50 million.


AEROSYSTEMS INC: Strong Performance Cues Moody's to Lift Ratings
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of Spirit
AeroSystems, Inc., Corporate Family and Senior Secured Credit
Facilities to Ba3 from B1.  The ratings outlook is stable.  This
concludes the review commenced on June 30, 2006.

The ratings reflect revenue growth and strong financial
performance that the company has reported in the first year of
operating independence, relatively strong financial metrics
despite substantial debt levels, and good revenue visibility owing
to long term requirements contracts with the OEM's.  The ratings
upgrade was also influenced by expectations for near term debt
reduction that would ensue through the use of funds from Spirit's
planned Initial Public Offering of stock, announced in the
company's S-1 filing dated August 30, 2006.  However, the ratings
continue to be negatively impacted by thin current
free cash flow generation, Spirit's concentration of sales on
essentially only two customers, Boeing and Airbus, as well as
the company's relatively short operating history as a stand-alone
company.

The stable ratings outlook reflects Moody's expectations that
revenue will continue to grow under stable margins, while free
cash flows become substantially positive through fiscal year
2007 as development costs diminish and delivery rates pick up.
As Spirit develops a longer track record as a stand-alone entity,
demonstrating continued revenue growth and margin stability,
ratings would be subject to upward revision if leverage were to
fall below 2.5x and if free cash flow were to exceed 10% of debt
for a sustained period, while cash flows generally stabilize as
working capital and CAPEX requirements abate.

Ratings or their outlook could be lowered if loss of contracts or
unexpected deterioration in operating performance were to occur,
or if Spirit were to increase debt levels materially for any
reason, such that Debt were to exceed 4x or free cash flow were to
remain negative for a prolonged period.

Upgrades:

Issuer: Spirit Aerosystems, Inc.

   * Corporate Family Rating, Upgraded to Ba3 from B1
   * Senior Secured Bank Credit Facility, Upgraded to Ba3 from B1

Outlook Actions:

Issuer: Spirit Aerosystems, Inc.

   * Outlook, Changed To Stable From Rating Under Review

Spirit AeroSystems, Inc., headquartered in Wichita, Kansas, with
facilities in Wichita, Tulsa and McAlester OK, and Prestwick,
Scotland, is a designer and manufacturer of fuselages, struts,
nacelles, thrust reversers and other complex components for Boeing
and Airbus.


AES CORP: Selling 33% Stake in Eletropaulo Metropolitana
--------------------------------------------------------
AES Corp. plans to sell a 33% stake in its Brazilian unit --
Eletropaulo Metropolitana Electricidade de Sao Paulo SA -- to help
reschedule a $1.2 billion debt owed to the state development bank,
Bloomberg News reports.

According to the same report, the stake in Eletropaulo is valued
at BRL1.29 billion ($603 million) as of Sept. 1.

AES Transgas Empreendimentos SA, a unit based in Sao Paulo, will
sell 13.76 billion preferred B shares of Eletropaulo this month,
through a public offering on domestic and international markets,
Bloomberg says, citing a statement filed with Brazil's securities
regulator.

Brazil's state development bank, Banco Nacional de Desenvolvimento
Econ"mico e Social, could have gotten hold of AES' Brazilian
assets two years ago if the power company did not agree to a debt
restructuring.

"AES is trying to improve its cash position in Brazil," Januario
Hosten Jr., an equity analyst at Leme Investimentos in
Florianopolis, Brazil was quoted by Bloomberg as saying.  "It also
shows that the company is seeing better opportunities of gains in
other types of investments than Eletropaulo."

Meanwhile, Eletropaulo's shares are adversely affected by the
proposed sale.

"The sale is having a negative impact on the price of shares
because it shows that Transgas doesn't expect Eletropaulo's shares
to rise too much in the future," Leme Investimentos analyst told
Bloomberg.

After the sale, Transgas' shares will be up to 4.9% in
Eletropaulo. Transgas plans to price the shares on Sept. 21,
Bloomberg says.

                     About Eletropaulo

Eletropaulo distributes power in Brazil's industrial hub of Sao
Paulo city and 23 surrounding towns. Power consumption in Sao
Paulo state grew 3.8% in 2005 from 2004, according to data from
Sao Paulo state government.

                      About AES Corp.

AES Corp. (NYSE:AES) -- http://www.aes.com/-- is a global
power company.  The Company operates in South America, Europe,
Africa, Asia and the Caribbean countries.  Generating 44,000
megawatts of electricity through 124 power facilities, the
Company delivers electricity through 15 distribution companies.

AES's Latin America business group is comprised of generation
plants and electric utilities in Argentina, Brazil, Chile,
Colombia, Dominican Republic, El Salvador, Panama and Venezuela.
Fuels include biomass, diesel, coal, gas and hydro.  The group
also pursues business development activities in the region.  AES
has been in the region since May 1993, when it acquired the CTSN
power plant in Argentina.

                        *    *    *

As reported in the Troubled Company Reporter on May 25, 2006,
Fitch affirmed The AES Corp.'s Issuer Default Rating at 'B+'.
Fitch also affirmed and withdrew the ratings for the
company's junior convertible debt.  Fitch said the Rating
Outlook for all remaining instruments is Stable.

As reported in the Troubled Company Reporter on March 31, 2006,
Standard & Poor's Ratings Services raised its corporate credit
rating on energy company The AES Corp. to 'BB-' from 'B+'.  S&P
said the outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2006,
Moody's affirmed the ratings of The AES Corp., including
its Ba3 Corporate Family Rating and the B1 rating on its senior
unsecured debt.  Moody's said the rating outlook remains stable.


AIRBASE SERVICES: Regent Aero Has Until Oct. 27 Decide on Leases
----------------------------------------------------------------
The Honorable D. Michael Lynn of the U.S. Bankruptcy Court for the
Northern District of Texas in Ft. Worth extended until Oct. 27,
2006, the time within which Regent Aerospace Corporation has to
assume, assume and assign, or reject unexpired leases and
executory contracts of Airbase Services, Inc.

Regent Aerospace bought substantially all of the assets of Airbase
Services on June 30, 2006.  Regent Aerospace requested Dennis
Faulker, the Chapter 11 Trustee of the Debtor, for the additional
time to examine those leases and contracts.

The Sale Order states that Regent Aerospace will have the right to
designate any lease or contract to be assumed.

From June 30, Regent Aerospace is responsible for postpetition
performance until those leases and contracts are assumed, assumed
and assigned, or rejected.

The Chapter 11 Trustee supports the extension because he is not
aware of any prejudice to the estate or to the creditors.

Headquartered in Grand Prairie, Texas, Airbase Services, Inc. --
http://www.airbaseservices.com/-- maintained and repaired a wide
range of cargo equipment and cabin interior designs for commercial
airlines, and provided maintenance and management services for the
airline industry.  Due to bankruptcies filed by several of its
airline customers, the Company filed for bankruptcy protection on
May 1, 2006 (Bankr. N.D. Tex. Case. No. 06-41231).  The Court
approved the appointment of Dennis Faulkner as Chapter 11 Trustee
in the Debtor's chapter 11 case on May 3, 2006.  Mark J.
Petrocchi, Esq., at Goodrich Postnikoff Albertson & Petrocchi,
LLP, represents the Trustee.  No Official Committee of Unsecured
Creditors has been appointed in the Debtor's case.  In its
schedules of assets and liabilities, the Debtor listed $12,628,078
in total assets and $28,311,883 in total liabilities.


ALLIED HOLDINGS: McConells Can Schedule Suit on Trial Calendar
--------------------------------------------------------------
The Honorable C. Ray Mullins of the U.S. Bankruptcy Court for the
Northern District of Georgia partially modifies the automatic stay
to allow Frederick and Norma McConnell to take necessary actions
solely to cause the case captioned McConnell, et al., v.
Commercial Carriers, et al., to be placed on the trial calendar in
the U.S. District Court for the Eastern District of Missouri.

Judge Mullins rules that the Order is without prejudice to:

    * the McConnells' right to seek further relief from stay
      relating to the Federal Court Action; or

    * the Debtors' right to oppose any additional request for
      relief.

The McConnells, Allied Holdings, Inc. and its debtor-affiliates
are parties to a civil action currently pending in the City of
St. Louis Circuit Court.  Mr. McConnell asserts products liability
claims and seeks recovery of damages for severe personal injuries.

The Debtors assert that the McConnells have not established cause
for relief and will not be unduly harmed by denial of the request.
The Debtors further say that the estates will suffer substantial
harm from the modification of the stay, including the significant
time and expenses of litigating the claims.

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)


AMERIVISION COMMS: Dataprose Production Contract Deemed Rejected
----------------------------------------------------------------
Amerivision Communications, Inc., doing business as Lifeline
Communications, Inc., asked the U.S. Bankruptcy Court for the
Western District of Oklahoma for an order enforcing the plan of
reorganization confirmed in its chapter 11 case and deeming an
executory contract with Dataprose, Inc., rejected.  The Bankruptcy
Court granted the Reorganized Debtor's request.  Dataprose
appealed to the United States Bankruptcy Appellate Panel of the
Tenth Circuit, and, in a decision published at  2006 WL 2422662,
the 10th Cir. BAP affirmed.

Before the filing of Amerivision's Chapter 11 bankruptcy case on
December 8, 2003 (Bankr. W.D. Okla. Case No. 03-23388),
Amerivision and Dataprose were parties to an executory production
contract -- one of over 350 similar executory contracts to which
Amerivision was a party.

Dataprose was served with notice of the filing of the Chapter 11
case.  Amerivision listed Dataprose on its Schedule of Executory
Contracts and Unexpired Leases.  Schedule G was not served on
parties in interest.  William Winfield, Esq., at Nordman Cormany
Hair & Compton LLP, Dataprose's counsel, entered an appearance in
the Chapter 11 case on February 11, 2004.

As the debtor in possession, Amerivision filed several Chapter 11
reorganization plans during the pendency of its case.  Three
creditors jointly filed a competing reorganization plan and
amended plans.  The bankruptcy court scheduled a simultaneous
hearing on the competing Chapter 11 plans.  Dataprose and Winfield
were served with the Creditors' Second Amended Plan, Amerivision's
Third Amended Chapter 11 Plan, a notice of the confirmation
hearing, and a ballot.  A single ballot was provided to the
parties entitled to vote on the competing plans, including
Dataprose, and Dataprose voted to accept Amerivision's proposed
plan.

The language of Amerivision's confirmed Chapter 11 plan, the 10th
Cir. BAP says, combined with the notices served on Dataprose,
provided adequate notice of the the debtor's intended rejection of
the executory production contract.  The plan put any party to an
executory contract on notice that, absent specific assumption, the
contract was rejected.  The creditor had notice of the bankruptcy
filing and was served with both competing plans, notice of the
confirmation hearing, the ballot provided with the competing
plans, and the deadline for filing rejection damages claims.
Accordingly, the 10th Cir. BAP affirms the Bankruptcy Court's
Enforcement Order.

Keith Miles Aurzada, Esq., at Hance Scarborough Wright Ginsberg &
Brusilow, LLP, in Dallas, Texas, represented Amerivision in this
dispute.


ARTIFICIAL LIFE: June 30 Balance Sheet Upside-Down by $4.2 Million
------------------------------------------------------------------
Artificial Life Inc. reported in its balance sheet as of June 30,
2006 total stockholders' deficit of $4,264,110 from total assets
of $1,618,532 and total liabilities of $5,882,642.

The Company also reported in its June 30, 2006 balance sheet
$5,882,642 in total current liabilities and $1,518,687 in total
current assets.

For the three-month period ended June 30, 2006, the Company
reported $705,203 of net income from revenues of $221,532,
compared to a net loss of $328,915 from $81,579 in revenues in the
three-month period ended June 30, 2005.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?116e

Artificial Life Inc. -- http://www.artificial-life.com/-- is a
public US corporation headquartered in Hong Kong.  The Company
provides mobile technology, content, games and applications.


ASARCO LLC: Wants AMC's Objection to Escrow Pact Overruled
----------------------------------------------------------
ASARCO LLC asks the U.S. Bankruptcy Court for the Southern
District of Texas in Corpus Christi to:

   (a) overrule Americas Mining Corporation's objection to its
       Lift Stay Motion;

   (b) grant its Lift Stay Motion; and

   (c) direct Americas Mining Corporation to file an adversary
       proceeding regarding the Refund.

ASARCO LLC tells the Court that it has been working to collect an
outstanding tax refund from the Internal Revenue Services for the
last four years.  If paid, the refund claims, estimated to be
approximately $40,400,000, will be one of ASARCO's largest single
cash assets.

James R. Prince, Esq., at Baker Botts L.L.P., in Dallas, Texas,
relates that the Department of Justice has been aware of the
Refund since 2003, and has advised ASARCO that it will assert a
set-off claim against the Refund for payment of environmental-
related debts.  ASARCO has not conceded the validity of the DOJ's
claims, but has agreed to escrow the Refund with all the rights
of both parties preserved.

Mr. Prince asserts that under Treasury Regulation 301.7701-
2(c)(2)(iii), ASARCO LLC is entitled to a Refund because:

   (a) both the Refund and the tax audit with respect to the
       Refund relate solely to taxable years in which the
       taxpayer, ASARCO NJ, was not a disregard entity for tax
       purposes; and

   (b) ASARCO LLC succeeded to all of ASARCO NJ's assets and
       liabilities by virtue of the February 2005 merger of
       ASARCO NJ into ASARCO LLC.

ASARCO LLC's post-merger status as a disregard entity, therefore,
is irrelevant for purposes of determining its liability for taxes
and entitlement to tax refunds relating to pre-merger tax
periods, Mr. Prince argues.

Mr. Prince emphasizes that AMC's reliance on the Internal Revenue
Code is misplaced for these reasons:

   -- Entitlement to a tax refund is not a tax attribute subject
      to IRC provisions; and

   -- The net operating loss that generated the Refund in the
      present case no longer existed as an attribute as of the
      February 2005 merger because the loss had already been
      carried back and a claim for refund had been filled before
      the merger took place.

The Limited Liability Agreement reiterating ASARCO LLC's status,
as a disregard entity for tax purposes, is meaningless, Mr.
Prince contends.

                         Lift Stay Motion

As reported in the Troubled Company Reporter on July 20, 2006,
ASARCO LLC asked the Bankruptcy Court to lift the automatic stay,
to the extent necessary, to permit ASARCO, the U.S. government and
Wells Fargo Bank, National Association, as escrow agent to enter
into the Stipulation and the Escrow Agreement and the deposit of
the Tax Refund in the Escrow Account.

A full-text copy of the Escrow Agreement is available for free at:

                http://ResearchArchives.com/t/s?de1

                         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: Creditors' Panel Wants Tax Sharing Pact Decided Later
-----------------------------------------------------------------
ASARCO LLC and the Official Committee of Unsecured Creditors of
ASARCO responded to Americas Mining Corporation's request to
compel ASARCO and its debtor-affiliates to decide whether to
assume or reject the Tax Sharing Agreement and the Tax Sharing
Amendment.

1. Creditors' Committee

The Official Committee of Unsecured Creditors argues that
compelling ASARCO LLC to decide on the Tax Sharing Agreement
between Americas Mining Corporation and Asarco Inc. is premature
at this time.

Derek J. Baker, Esq., at Reed Smith, LLP, in Pittsburgh,
Pennsylvania, points out that AMC and Asarco Inc. seek to compel
any decision from ASARCO at a point before any evaluation of its
benefit has been determined.  In addition, there is an ongoing
investigation of causes of action against the counterparties of
the Tax Sharing Agreement.

Mr. Baker contends that AMC and Asarco Inc. have not showed
sufficient cause that will justify altering the standard
evaluation period provided to the Debtors.  Rather, AMC and
Asarco Inc. rely on perceived and potential claims, which could
fall on them and impact their tax planning.

The ability of AMC and Asarco Inc. to tax plan does not rise to
the level of "cause" needed to alter the timeline for the estate
to perform its full investigation and evaluation of the TSA and
related issues, Mr. Baker argues.

2. ASARCO LLC

The Lift Stay Motion to escrow the Refund and AMC's Motion to
Compel Decision on the TSA are closely intertwined, James R.
Prince, Esq., at Baker Botts L.L.P., in Dallas, Texas, points
out.

Although title to the Refund is disputed, if AMC is determined to
be the owner of the Refund, it is required under the TSA to remit
the Refund to ASARCO LLC without setoff, but net of professional
fees.  Thus, any decision on ownership of the Refund would
invariably impact the potential value of the TSA to ASARCO's
bankruptcy estate, Mr. Prince avers.

Mr. Prince argues that if ASARCO immediately assumes the TSA, all
its future obligations under the TSA will become administrative
expenses.  A premature decision on the TSA will adversely affect
the parties-in-interest in ASARCO's Chapter 11 case.

If ASARCO prematurely rejects the TSA and it is determined later
that the TSA is the sole source of ASARCO's entitlement to the
Refund, ASARCO would stand to lose more than $50,000,000, Mr.
Prince says.

On the other hand, AMC will suffer no harm by allowing ASARCO to
make an informed decision on the TSA until the confirmation of a
plan of reorganization, Mr. Prince states.

Mr. Prince tells the Court that for the 2005 tax year, ASARCO and
its subsidiaries will owe no regular income tax to AMC under the
TSA.  Although ASARCO has generated taxable income in 2006, it is
expected that the net operating losses generated by ASARCO NJ
would wholly set off the taxable income.  Thus, AMC is not
expected to pay any regular income tax on account of ASARCO's
taxable income in 2005 and 2006.

At most, AMC will have some alternative minimum tax liability on
account of the operations of the entire AMC consolidated tax
group, but neither ASARCO nor AMC knows what the actual payment
may be, Mr. Prince says.

Even if a tax liability accrues in 2006, AMC may qualify for a
tax exemption that would allow it to base its estimated taxes on
its previous year's tax liabilities, Mr. Prince says, and thus,
may not need to pay estimated alternative minimum taxes in 2006.

Moreover, ASARCO believes that AMC restructured ASARCO NJ as a
limited liability company and caused it to enter into the TSA
with the sole purpose of improving its tax position.

ASARCO acknowledges that the TSA is an important contract to its
estate.  However, ASARCO does not have sufficient time to fully
analyze the TSA's implications, Mr. Prince avers.  ASARCO
currently does not have its own internal tax staff to assist in
evaluating the TSA and other tax issues.

ASARCO asks the U.S. Bankruptcy Court for the Southern District of
Texas in Corpus Christi to deny AMC's request.

                         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).


ASSOCIATED MATERIALS: Earns $16.3 Mil. in Second Qtr. Ended July 1
------------------------------------------------------------------
Associated Materials Incorporated reported its financial
statements for the second quarter ended July 1, 2006.

The Company reported net sales of $348.3 million for the quarter
ended July 1, 2006, a 10.5% increase over net sales of
$315.4 million for the same period in 2005.  For the six months
ended July 1, 2006, net sales were $607.6 million, or 13.8% higher
than net sales of $533.9 million for the same period in 2005.

Net income for the second quarter of 2006 was $16.3 million,
compared with net income of $7.7 million for the same period in
2005.  Net income was $16.4 million for the six months ended
July 1, 2006, compared with net income of $400,000 for the same
period in 2005.

Net sales increased 10.5%, or $33.0 million, during the second
quarter of 2006 compared to the same period in 2005 driven
primarily by the realization of selling price increases due to an
improved pricing environment, continued strong unit volume growth
in the Company's vinyl window operations, as well as the benefit
from the stronger Canadian dollar.

Gross profit in the second quarter of 2006 was $87.2 million, or
25.0% of net sales, compared with gross profit of $72.2 million,
or 22.9% of net sales, for the same period in 2005.  The increase
in gross profit as a percentage of net sales was primarily a
result of the realization of price increases.

Selling, general, and administrative expense increased to
$52.5 million, or 15.1% of net sales, for the second quarter of
2006 versus $50.8 million, or 16.1% of net sales, for the same
period in 2005.

Selling, general and administrative expense includes $100,000 and
$1 million, respectively, of amortization of prepaid management
fees for the second quarters of 2006 and 2005.

Excluding the amortization of prepaid management fees, selling,
general and administrative expense for the second quarter of 2006
increased $2.5 million compared to the same period in 2005.  The
increase in selling, general and administrative expense was due
primarily to increased expenses in the Company's supply center
network, including increased payroll costs and building and truck
lease expenses, and increases in EBITDA-based incentive
compensation programs, partially offset by lower marketing
expenses.

Income from operations was $34.9 million for the second quarter of
2006 compared to $20.5 million for the same period in 2005.

Net sales increased by 13.8%, or $73.7 million, for the six months
ended July 1, 2006, compared with the same period in 2005 driven
primarily by the realization of selling price increases due to an
improved pricing environment during the first half of 2006,
continued strong unit volume growth in the Company's vinyl window
operations, as well as the benefit from the stronger Canadian
dollar.

Gross profit for the six months ended July 1, 2006, was
$146.3 million, or 24.1% of net sales, compared with gross profit
of $121.2 million, or 22.7% of net sales, for the same period in
2005.

The increase in gross profit as a percentage of net sales was
primarily a result of improved leverage of fixed costs due to
higher net sales and the realization of price increases.

Selling, general, and administrative expense increased to
$103.5 million, or 17.0% of net sales, for the six months ended
July 1, 2006, versus $101.6 million, or 19.0% of net sales, for
the same period in 2005.

Selling, general, and administrative expense for the six months
ended July 1, 2006, includes $2.1 million of separation costs
related to the resignation of the Company's former Chief Executive
Officer and amortization of prepaid management fees of $300,000.

Selling, general, and administrative expense for the same period
in 2005 includes $2 million of amortization of prepaid management
fees and non-cash stock compensation expense of $300,000.

Excluding CEO separation costs, amortization of prepaid management
fees and non-cash stock compensation expense, selling, general and
administrative expense for the six months ended July 1, 2006,
increased $1.8 million compared to the same period in 2005.

The increase was primarily due to increased expenses in the
Company's supply center network, expenses relating to new supply
centers opened during the past 12 months, as well as increases in
EBITDA-based incentive compensation programs, partially offset by
lower marketing expenses.

During the six months ended July 2, 2005, the Company incurred
facility closure costs of approximately $3.4 million relating to
the closing of its Freeport, Texas, manufacturing plant.

Income from operations was $43 million for the six months ended
July 1, 2006, compared with $16.2 million for the same period in
2005.

At July 1, 2006, the consolidated balance sheet showed $898.215
million in total assets, $639.635 million in total liabilities,
and $258.580 million in total stockholders' equity.

                Consolidated Financial Information

The consolidated financial information for the quarters and six
months ended July 1, 2006, and July 2, 2005, includes AMI and the
Company's indirect parent company, AMH Holdings, Inc., which
conducts all of its operating activities through AMI.

Including AMH's interest expense, which primarily consists of the
accretion on AMH's 11-1/4% senior discount notes, AMH's
consolidated net income was $9.4 million and $2.7 million for the
second quarters of 2006 and 2005, respectively. For the six months
ended July 1, 2006, AMH's consolidated net income was $5.1 million
compared to a consolidated net loss of $9.4 million for the same
period in 2005.

In connection with the December 2004 recapitalization transaction,
AMH's parent AMH Holdings II, Inc., was formed, and AMH II
subsequently issued $75 million of senior notes in December 2004.
The AMH II senior notes, which had accreted to $79.2 million by
July 1, 2006, are not guaranteed by either AMI or AMH.

The senior notes accrue interest at 13-5/8%, of which 10% is paid
currently in cash and 3-5/8% currently accrues to the value of the
senior notes.

As AMH II is a holding company with no operations, it must receive
distributions, payments or loans from its subsidiaries to satisfy
its obligations on its debt.  Total AMH II long-term debt,
including that of its consolidated subsidiaries, was
$746.2 million as of July 1, 2006.

                         About Investcorp

Investcorp -- http://www.investcorp.com/-- is a global asset
management firm specializing in alternative investments with
offices in New York, London and Bahrain.  The firm has four
products: private equity, hedge funds, real estate investment and
venture capital.  It was established in 1982 and currently manages
total investments in alternative assets of around $10 billion.

                      About Harvest Partners

Harvest Partners -- at http://www.harvpart.com/-- is a private
equity investment firm.  Founded in 1981, Harvest Partners has
approximately $1 billion of invested capital under management.

                    About Associated Materials

Headquartered in Akron, Ohio, Associated Materials Incorporated
-- http://www.associatedmaterials.com/-- manufactures exterior
residential building products, which are distributed through
company-owned distribution centers and independent distributors
across North America.  AMI produces a broad range of vinyl
windows, vinyl siding, aluminum trim coil, aluminum and steel
siding and accessories, as well as vinyl fencing, decking and
railing.  AMI is a privately held, wholly owned subsidiary of
Associated Materials Holdings Inc., a wholly owned subsidiary of
AMH, a wholly owned subsidiary of AMH II, which is controlled by
affiliates of Harvest Partners, Inc., and Investcorp S.A.

                           *     *     *

Moody's downgraded the ratings of Associated Materials Inc. and
its holding company AMH Holdings, Inc.  AMH Holdings' corporate
family rating and ratings on the AMI's senior secured credit
facilities were downgraded to B3 from B2, effective Jan. 19, 2006.
Moody's said the ratings outlook is stable.


AZUR HOLDINGS: Baum & Co. Expresses Going Concern Doubt
-------------------------------------------------------
Baum & Company, P.A., in Coral Springs, Florida, expressed doubt
about Azur Holdings, Inc.'s ability to continue as a going concern
after auditing the Company's financial statements for the fiscal
year ended April 30, 2006.  The auditing firm pointed to the
Company's recurring losses since inception.  The Company has
accumulated losses of $2.7 million and a negative working capital
position of $5.9 million.

For the fiscal year ended April 30, 2006, the Company incurred a
$2.2 million net loss on $717,713 of net revenues compared to a
$8,672 net loss on zero revenue in 2005.

At April 30, 2006, the Company's balance sheet showed $37,641,442
in total assets and $40,630,282 in total liabilities, resulting in
a $2,988,840 stockholders' deficit.

The Company's April 30 balance sheet also showed strained
liquidity with $910,322 in total current assets available to pay
$6.8 million in total current liabilities coming due within the
next 12 months.

A full-text copy of the Company's Annual Report is available for
free at http://researcharchives.com/t/s?1165

Headquartered in Fort Lauderdale, Florida, Azur Holdings, Inc. --
http://www.azurholdings.com/-- is a real estate development
company, which develops and markets luxury residential and resort
properties.  The company also operates a real estate development
company in Gautier, Mississippi.  It owns the Shell Landing Golf
Club in Gautier, and Azur Shell Landing Resort consisting of
approximately 1,100 acres contiguous to the Shell Landing Golf
Club.  The company also has various real estate projects under
development and consideration, which includes the development and
acquisition of luxury hotels and resorts, domestically and
internationally.  In addition, Azur Holdings purchases land in
strategic areas for future development or sale.  The Company is a
subsidiary of Azur International, Inc.


BGF INDUSTRIES: June 30 Balance Sheet Upside-Down by $37.6 Million
------------------------------------------------------------------
BGF Industries Inc. reported in its balance sheet at June 30, 2006
total assets of $84,594,000 and total liabilities of $122,208,000
resulting to total stockholder's deficit of $37,614,000.

For the three months ended June 30, 2006, the Company's net income
increased $508,000, to $1,456,000 from $948,000 in the three
months ended June 30, 2005, while the Company's net sales for the
three months ended June 30, 2006 increased $4,595,000, to
$46,323,000 from net sales of $41,728,000 in the same period last
year.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?116f

Headquartered in Greensboro, North Carolina, BGF Industries, Inc.
-- http://www.bgf.com/-- manufactures woven and non-woven glass
fiber fabrics in North America.  The Company also produces other
high performance fabrics.


BURGER KING: Improving Performance Prompts S&P's Rating Upgrade
---------------------------------------------------------------
Standard & Poor's Ratings Services raised the corporate credit
and senior secured debt ratings on Miami-based quick-service
operator Burger King Corp. to 'BB-' from 'B+'.

Concurrently, the recovery rating on the company's secured credit
facility was raised to '2' from '3' due to the repayment of $400
million of debt.  The '2' recovery rating indicates the
expectation for substantial (80%-100%) recovery of principal in
the event of a payment default.

All ratings are removed from CreditWatch, where they were placed
on Feb. 1, 2006, with positive implications.  The outlook is
stable.

"The upgrade reflects Burger King's improving operating
performance and reduced leverage," said Standard & Poor's credit
analyst Diane Shand.

A healthier franchise system, the streamlining of general and
administrative operations, and better products and advertising
have enabled Burger King to generate positive operating trends
over the past three years.  The company has also decreased
leverage significantly -- to 4.8x in fiscal 2006 from 7.5x in
fiscal 2005 -- as a result of utilizing $350 million of its
proceeds from its initial public offering to reduce debt and
improve profitability.

Ratings on Burger King reflect the company's:

   * vulnerable business profile;

   * participation in the competitive quick service sector of the
     restaurant industry;

   * leveraged capital structure; and

   * aggressive financial policy.

These risks are partially mitigated by the company's good market
position and improving operating performance.

Burger King's operating performance has shown improvement since
the company was purchased by a consortium of investors in 2002.
The company has strengthened its management team, developed new
products, and addressed financial and relationship issues in the
franchise system.  This has resulted in positive same-store sales
for the past 10 quarters and the operating margin expanding to 24%
in fiscal 2006, from 19.2% in fiscal 2005.

Standard & Poor's believes that the company has the opportunity
to further improve operating performance over the next few years
through menu changes, further strengthening store execution and
advertising, and expanding store hours.  But progress could be
slow and uneven because Burger King is up against formidable
competitors such as McDonald's Corp. (A/Stable/A-1), Wendy's
International Inc. (BB+/Negative/B-1), and Yum! Brands Inc.
(BBB/Stable/--)

Burger King is the third-largest quick-service restaurant operator
in the world in terms of sales and units, with 1,204 company-owned
restaurants and 9,889 franchised restaurants worldwide.


CATHOLIC CHURCH: Spokane Prepared to Amend Plan If Mediation Fails
------------------------------------------------------------------
Shaun M. Cross, Esq., at Paine, Hamblen, Coffin, Brooke & Miller,
LLP, in Spokane, Washington, tells the U.S. Bankruptcy Court for
the Eastern District of Washington that if the mediation talks
will not be successful, the Diocese of Spokane:

   * will amend its First Amended Plan of Reorganization and
     Disclosure Statement dated December 30, 2005;

   * expects that the Plan filed by the Tort Claimants Committee
     and the Future Claims Representative will also be revised;
     and

   * expects that the Tort Litigants Committee will file a
     competing plan.

To simplify the scheduling of matters related to potentially
competing plans, the Diocese proposes that all plans and
disclosure statements be filed on October 16, 2006.

The Diocese suggests that a scheduling conference will be held on
October 23, 2006, or as soon thereafter as possible, to set a
schedule for all matters related to the competing plans.

The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004.  Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in
its restructuring efforts.  When the Debtor filed for protection
from its creditors, it listed $11,162,938 in total assets and
$81,364,055 in total debts. (Catholic Church Bankruptcy News,
Issue No. 68; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


CERADYNE INC: Receives $1.5 Million Transnuclear Initial Order
--------------------------------------------------------------
Ceradyne, Inc., received its initial order for boron
carbide/aluminum metal matrix composite components from
Transnuclear, for more than $1.5 million.

The MMC components are for dry storage of spent nuclear fuel and
are scheduled for delivery by the end of second-quarter 2007.

The Company's new subsidiary, Ceradyne Canada, in Chicoutimi,
Quebec, will manufacture the components from MMC ingots, which
will be produced by Alcan Inc. utilizing its patented MMC casting
process.  The components will be integrated into Transnuclear's
NUHOMS(R) Systems, which are used by U.S. nuclear-powered
utilities.

Michael Kraft, vice president of sales, marketing and business
development, commented: "We are very pleased with this first
order, as it confirms the viability of our business strategy with
Alcan to not only supply Boral(R) and boron carbide/aluminum MMCs,
but also control all the production steps in the value stream,
from the boron carbide powder to final delivery of these critical
components.  This vertically integrated capability makes Ceradyne
unique and provides superior value to end-customers in the nuclear
waste containment market.

"Utilizing this capability, and in partnership with Transnuclear,
we engineered an MMC that meets the rigorous specifications of
their system," Mr. Kraft continued.  "We believe in building long-
term relationships with our customers and view this as an
excellent start in building a major presence in this market.
Furthermore, our earlier announcements about entering the MMC
market with advanced materials, technical support, and
manufacturing capabilities in partnership with Alcan have been
well-received by the utilities, spent-fuel storage original
equipment manufacturers, and fabricators.  We look forward to
expanding our line of MMCs and Boral(R) for neutron absorption in
both wet and dry storage applications."

                       About Transnuclear

Transnuclear is a wholly owned U.S. division of Areva Group, a
French-based energy company offering technological solutions
worldwide for nuclear power generation and electricity
transmission and distribution.

                      About Ceradyne Inc.

Based in Costa Mesa, California, Ceradyne, Inc. (Nasdaq: CRDN)
-- http://www.ceradyne.com/-- develops, manufactures and markets
advanced technical ceramic products and components for defense,
industrial, automotive/dieseland consumer applications.

                           *     *     *

As reported in the Troubled Company Reporter on July 24, 2006,
Ceradyne's $50 million revolving credit facility due 2009 carries
Standard & Poor's BB- rating.  The Company's credit rating is also
rated BB- by Standard & Poor's.


COLLINS & AIKMAN: Customers Oppose Committee's Planned Inquiries
----------------------------------------------------------------
The request of the Official Committee of Unsecured Creditors of
Collins & Aikman Corporation and its debtor-affiliates to conduct
examinations and obtain documents from the Debtors' three largest
customers, Ford Motor Corporation, General Motors Corporation, and
DaimlerChrysler Corporation, drew fire from both the Debtors and
the affected customers.

As reported in the Troubled Company Reporter on Aug. 18, 2006, the
committee wished to obtain additional evidence relating to
potential causes of action that may be asserted against these
principal customers under applicable fraudulent transfer and
antitrust laws.

                          Objections

(1) Debtors

The Committee seeks overly broad discovery with respect to tenuous
causes of action for which it lacks standing at a particularly
sensitive juncture in the Debtors' Chapter 11 cases, Ray C.
Schrock, Esq., at Kirkland & Ellis LLP, in Chicago, Illinois,
argues.

As previously reported, the Committee wants to conduct an
examination under Rule 2004 of the Federal Rules of Bankruptcy
Procedure against DaimlerChrysler Corporation, General Motors
Corporation, and Ford Motor Company to investigate alleged
fraudulent actions.

Mr. Schrock points out that the Committee's requested discovery is
duplicative of an investigation currently being conducted by the
Debtors.

The Debtors believe that through the Request, the Committee has
turned to an ill-timed effort to gain negotiation leverage with
respect to the Debtors' plan of reorganization.  Mr. Schrock
argues that these tactics directed at DaimlerChrysler, GM, and
Ford are not only outside the permissible scope of Rule 2004 but
also place at risk the success of the Debtors' ongoing
negotiations with their major customers regarding the global
resolutions necessary for the Debtors to emerge from bankruptcy.

Mr. Schrock relates that, as reflected in the recently filed
Disclosure Statement and the Plan of Reorganization, the value of
the Debtors' enterprise appears to be substantially below the
debt owed to its lenders.

The Debtors continue to be engaged in productive discussions with
the Customers regarding the award of future new business, the
resolution of outstanding commercial issues, and the
reconciliation of prepetition claims, Mr. Schrock says.

The Debtors ask the U.S. Bankruptcy Court for the Eastern District
of Michigan to view the Committee's request in its true light -- a
harassment tactic being used in an effort to gain leverage in
negotiations with respect to the Plan.

(2) GM

E. Todd Sable, Esq., at Honigman Miller Schwartz and Cohn LLP, in
Detroit, Michigan, tells Judge Rhodes that the Committee has
sought expansive discovery to investigate claims that can be
described, at best, as specious.

According to Mr. Sable, the Committee's fraudulent transfer
theory can be summarized as: if a debtor loses money on a
contract with a third party that the debtor entered into at a
time when it was insolvent, then, by definition, a debtor is
entitled to collect the amount of the losses under such contract.

Fundamentally, this theory ignores the risks inherent in
contracting in a free market, which include fluctuating raw
material costs, rising labor costs and a myriad of other factors
that impact upon a contract's ultimate profitability, Mr. Sable
points out.

Mr. Sable relates that the Debtors are investigating the facts
underlying the Committee's allegations and analyzing the
attenuated legal theory introduced by the Committee in support of
those claims.

The Court should not take the extraordinary step of divesting the
Debtors of the right to pursue, settle or abandon those claims,
Mr. Sable says.

(3) Ford

The Committee, by its own admission, seeks permission to go on a
"fishing expedition" into the confidential business records of
Ford, DaimlerChrysler and GM to investigate alleged fraudulent
transfers.

Stephen S. LaPlante, Esq., at Miller, Canfield, Paddock and
Stone, PLC, in Detroit, Michigan, points out that while the
Request was filed a few weeks before the Plan, it is apparent
that the Committee was well aware of the terms and conditions of
the Plan and the treatment provided for its constituencies.

Mr. LaPlante explains that the Plan offers little, if anything,
for unsecured creditors and asserts that unsecured creditors are
out of the money.

The filing of the Request at the same as the Debtors'
determination of the treatment for unsecured creditors and the
commencement of the Plan confirmation process is not mere
coincidence, Mr. LaPlante notes.

Mr. LaPlante argues that the Request lacks any discernible legal
basis or legitimate purpose.  Its apparent purpose is to unduly
pressure Ford, GM and DaimlerChrysler in an effort to extract an
enhanced payment under the Plan.

Ford denies that it engaged in any collusive conduct with
DaimlerChrysler, GM or any other competitor.  Mr. LaPlante assure
the Court that information and decisions about the pricing of
component parts purchased from suppliers like the Debtors are
confidential and proprietary to Ford.

(4) DaimlerChrysler

James A. Plemmons, Esq., at Dickinson Wright PLLC, in Detroit,
Michigan, asserts that overall, the Committee's claims are prima
facie insufficient to state a claim and the timing of the
Committee's Request speaks volumes as to its true motivations.

The discussions taking place now between the Customers and
Debtors may well determine whether the Debtors are able to emerge
from bankruptcy, Mr. Plemmons points out.

As the Debtors' financial condition has continued to deteriorate,
the Committee certainly recognizes that its members will likely
not realize any substantial value on their claims against the
Debtors, Mr. Plemmons said.

"[T]he Committee is desperately resorting to the possible 'in
terrorem' affect this sort of broad discovery might have and how
it would negatively affect the Customers in their discussions
with the Debtors," notes Mr. Plemmons.

DaimlerChrysler asks the Court to not condone these tactics.

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: Selling De Minimis Assets to Various Parties
--------------------------------------------------------------
Collins & Aikman Corporation and its debtor-affiliates notify the
U.S. Bankruptcy Court for the Eastern District of Michigan that
they plan to sell certain assets to these parties:

Purchaser                 Asset                           Price
---------                 -----                           -----
Fisher Textile Inc.       15 Box Frames                  $1,875

Petit Textile Machinery   24 Van de Wiele             1,200,000
                          Jacquard Looms

Gordon Brothers           17 Package Dye Machines       100,000
                           1 Chemical Dispensing
                             System
                           1 Lab Packaging Machine
                             with Winder
                           2 200HP Air Compressors
                           2 50HP Air Compressors
                           1 150HP Air Compressor
                           1 Beaker Dye Machine
                           1 Texcon Stock Solution
                             and Dispenser
                           2 Package Dye Sample
                             Machines
                           5 Lab Packaging Machines
                           5 Sample Dye Machines
                           3 Spindle Winders
                           3 Space Dye Machines
                           1 Spectrophoto Colorite
                             System
                           1 RPR Doubler Spindle

Virginia Carolina          6 office partitions          150,000
Realty & Auction Co.

JP Composite Materials    20 box frames                   2,500

Morning Glory Church      55 folding chairs                 550
of God and Christ

Republic Textile          62 Trico Knit Machines      2,850,000
Equipment Company         54 Mayer DNB Knit Machines
                           6 Direct Warpers Beams
                           3 Slitter lines and spare
                             parts for knit machines

Smith Glass, Inc.          3 HP Air Compressor              200

Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in Chicago,
Illinois, relates that each de minimis asset is being sold "as-
is" and "where-is" with no representations and warranties by the
Debtors.  The Purchasers will incur substantially all costs
associated with dismantling and moving the assets, Mr. Carmel
says.

Furthermore, the Debtors notify the Court and parties-in-interest
that they will abandon assets found at these locations:

   Location                       Assets
   --------                       ------
   2110 Charles Redfern Drive     1 Pitney Bowes Check Singer
   Athens, Tennessee              1 Line Printer

   2782 East U.S. 52              Measurex modem & monitor
   Morristown, Indiana            EF-11 Elec Poly Strapping Unit
                                  Servolap Control Box - DP021
                                  Coater 2 Latex Pump
                                  Vacuum that collects dust
                                  2 DeskJet Printers
                                  1 HP LaserJet Printer
                                  4 Production PC Computers
                                  1 ScanJet 4C CLR Scanner
                                  Kodak 210 Digital Camera

   300 Shelhouse Drive            1 Militoya Optical Comparator
   Rantoul, Illinois

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)


CONSTAR INT'L: Moody's Lifts Rating on $175 Million Senior Note
---------------------------------------------------------------
Moody's Investors Service changed the outlook for the ratings
of Constar International Inc. to stable from negative and
concurrently affirmed its B3 Corporate Family Rating and B3 rating
for the $220 million floating rate first mortgage note.  Moody's
also upgraded the $175 million 11% senior subordinated note rating
to Caa2 from Caa3.

The change of the ratings outlook to stable from negative
acknowledges Constar's improved consolidated performance due to
strong product mix performance and working capital improvements as
average receivables days outstanding and average inventory days
have been reduced.  While acknowledging the likely continuation of
some variances in monthly volume and profitability on the
conventional business, the stable outlook recognizes the company's
strong U.S. performance in aggregate, disappointing but stable
European performance, an improved raw material market, Constar's
established customer base and sizable contracted revenue.

Constar's ability to negotiate its contract with Pepsi, which
accounts for over 33% of it business and expires Dec. 31, 2007, or
to replace that business should negotiations fail, is integral to
the company's outlook and ratings.

The stable ratings outlook is prospective for the company
meeting revised expectations and sustaining the recent
enhancements in its consolidated credit profile, including
improved gross profit margins, successful cost reduction
initiatives and the expectation of positive cash flow from
operations.  However, the company remains constrained by
substantial financial leverage, negative to low free cash
flow and minimal interest coverage.

Constar's B3 CFR reflects the company's weak, albeit improving
credit statistics as evidenced by the expectation of positive free
cash flow throughout the intermediate term and some reduction of
its currently high financial leverage.  Although improving,
continued margin pressure given the substantial portion of
commoditized products in its revenue mix, price discounting, price
pressure as a result of customer consolidation, and high raw
material and energy costs,
are also reflected in the ratings.

Moody's took these actions:

   * Affirmed the existing B3 rating for the $220 million
     floating rate first mortgage note, due 2012

   * Upgraded the rating to Caa2 from Caa3 for the $175 million
     senior subordinated notes, due 2012

   * Affirmed the B3 Corporate Family Rating

The ratings outlook changed to stable from negative.

Headquartered in Philadelphia, Pennsylvania, Constar had
consolidated revenues of approximately $978 million for the twelve
months ended June 30, 2006.


CRITTENDEN MEMORIAL: S&P Lowers Series 2000 Debt's Rating to B+
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on
Crittenden County, Arkansas' series 2000 debt, issued for
Crittenden Memorial Hospital, to 'B+' from 'BB-'.  The downgrade
reflects income levels for fiscal 2006 through July 31, 2006
(unaudited), that are behind budget and the prior fiscal year's
levels.  The outlook is stable.

"Despite Crittenden's improvement to its operating and excess
incomes in fiscal 2005, we believe that Crittenden remains in a
precarious business position given its very constrained liquidity,
aging physical plant, competitive market, and weaker year-to-date
2006 financials," said Standard & Poor's credit analyst Kevin
Holloran.

"Significant improvements to liquidity levels, coupled with a
longer track record of positive operating results, will be needed
to secure a higher rating in the future."

The 'B+' rating reflects Crittenden's:

   * highly constrained cash position, with just 12 days' cash on
     hand;

   * high average age of plant, at more than 16 years; and

   * improvement in operating and excess income for 2005.

The weaker financial results through July 31, 2006, are
attributable to a one-time accounting change.  The average age of
plant is partly exacerbated by minimal capital expenditures over
the past two years.

Additional rating factors include:

   * the historically limited population growth and potential for
     out-migration to the nearby Memphis, Tennessee market;

   * the inherent risks in operating a small hospital; and

   * a change in the CEO position about eight months ago that has
     produced favorable physician recruitment results, improved
     patient volumes, and record cash collections over the past
     several months.

The lowered rating affects $7.825 million in rated debt.


DANA CORP: Court Denies Sypris' Request to Compel Pact Decision
---------------------------------------------------------------
The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for
the Southern District of New York denied Sypris Technologies
Inc.'s request to compel Dana Corporation and its debtor-
affiliates to assume or reject, on or before Oct. 3, 2006:

   (a) an Asset Purchase Agreement relating to the Debtors' plant
       in Marion, Ohio, and an interrelated supply agreement; and

   (b) Asset Purchase Agreements relating to the Debtors'
       Morganton, Toluca and Glasgow & Humboldt Plants, and
       interrelated supply agreements.

Judge Lifland found that the issues arising from either an
assumption or rejection of the Supply Contracts, including
Sypris' alleged ability to enjoin the Debtors from purchasing
requirements from other entities, are not before the Court.
Those issues will be ripe for determination when the decision to
assume or reject is made, the Court noted.

The Court held that it would be inappropriate to compel the
Debtors to make the decision regarding the Sypris Supply
Contracts -- in particular, prematurely -- because:

   1. the Debtors cases are large and complex, and they purchase
      goods and services from approximately 5,000 suppliers;

   2. Sypris has granted no concessions for the benefit of the
      Debtors, for their Contracts to be assumed or rejected.
      Sypris instead obtained substantial payment of prepetition
      obligations as well as beneficial modification of credit
      terms; and

   3. the Debtors cannot know the precise nature and extent of
      the contract obligations Sypris is seeking until the issues
      in the Arbitration are resolved.

Sypris has not met the burden of establishing that the Debtors
should be compelled to determine whether the Supply Contracts
should be assumed or rejected on an expedited basis, the Court
said.

"In a self-serving manner, Sypris cavalierly ventures into the
land of waiver and estoppel," Judge Lifland opined.

"The moving papers, while seeking the specific remedy of
'assumption or rejection' relief, inconsistently seek to preserve
a right at another time to argue against the Debtors' assumption
or rejection rights.  The choice having been made and issue
joined, Sypris cannot come back later and argue that the Supply
Contracts are not executory contracts incapable of rejection, but
are financial accommodations instead," the Court added.

In its request, published in the Troubled Company Reporter on
Aug. 28, 2006, Sypris told the Court that pursuant to the
Agreements, Sypris has raised and committed more than $100,000,000
in capital over the last five years primarily to:

   * acquire assets under the Agreements,
   * modernize and repair the Plants and businesses,
   * substantially increase productive capacity, and
   * re-engineer the Plants into an integrated system.

An integral part of the Agreements was granting Sypris the
exclusive right to supply 100% of Dana's North America
requirements for more than 1,000 component part designs through
2014, Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, in New
York, explained.

Without the exclusive right to supply, Sypris would not have
purchased the Debtors' non-competitive assets, Ms. Klestadt
said.  The exclusive long-term right was the cornerstone of the
Debtors' and Sypris' relationship.

According to Ms. Klestadt, the Agreements are by far the most
significant transactions in Sypris' 22-year history and have
transformed the company into one of the largest Tier 2 component
suppliers to the North American heavy truck market.  Dana
represents more than $200,000,000 of Sypris' annual revenues.
Sypris is Dana's largest component supplier and Dana is Sypris'
largest customer, Ms. Klestadt avered.

As of Aug. 15, 2006, the Debtors have not yet decided whether
to assume or reject the Agreements with Sypris.

Ms. Klestadt asserted that Sypris' request is warranted for these
reasons:

   (a) The sheer size of Sypris' productive capacity is important
       to the ongoing operation of the Debtors' estate.  Sypris
       cannot continue to attract and retain the capital
       resources or the key employees it needs while its core
       business remains under a cloud of uncertainty.  In turn,
       the Debtors' ability to satisfy its OEM customers would be
       harmed.

   (b) The ongoing expenditures and costs that Sypris incurs to
       perform under the Agreements, including capital
       expenditures and the long-term union contracts, are quite
       significant;

   (c) The Debtors have limited options as to the Agreements; and

   (d) The Debtors continue to breach of the Agreements.  Dana
       repudiate any further responsibility to conduct
       remediation activities in the Marion Plant when the
       Agreements require the Debtors to indemnify Sypris for
       ongoing environmental issues.  The transfer of certain
       lines of business to Sypris has still not taken place.

The decision to assume or reject the Agreements will require very
little analysis, and thus can be made easily by October 3, 2006,
Ms. Klestadt states.  Rejection of the Agreements will not
benefit the Debtors' estate, Ms. Klestadt added.

Ms. Klestadt noted that if rejected, the Agreements will allow
Sypris to enjoin the Debtors from purchasing any of their
requirements for certain commodities other than from Sypris
through 2014.  Thus, the customary benefits of rejecting a supply
contract are unavailable.

Moreover, rejection of the Agreements would effectively require
the Debtors to exit from the markets served by their commercial
vehicle services division, among others, for lack of essential
components, Ms. Klestadt said.

"In essence, the only assessment required is whether the Debtors
desire to stay in the heavy truck business," Ms. Klestadt
maintained.  Indeed, the Debtors can only reject the Agreements if
it intends to stop using all of the Parts purchased from Sypris
under the Agreements.

                      About Dana Corporation

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).


DANA CORP: David Browning Wants Stay Lifted to Prosecute Action
---------------------------------------------------------------
In January 2006, David Browning commenced a personal injury tort
action against DTF Trucking, Inc., and Jeffrey B. Perry in
the United States District Court for the Western District of
Kentucky.

DTF Trucking is a debtor-affiliate of Dana Corporation.

Mr. Browning alleges that he suffered personal injuries stemming
from an automobile accident in which Jeffrey Perry, as an agent
and driver of DTF's truck, negligently struck him.

The litigation was stayed pursuant to DFT's bankruptcy filing.

Mr. Browning intends to prosecute the Kentucky Action to pursue
his claims against DFT but only to the extent of any of DFT's
available insurance proceeds.

Accordingly, Mr. Browning asks the U.S. Bankruptcy Court for the
Southern District of New York to lift the automatic stay in the
Debtors' Chapter 11 cases to allow him to prosecute the Kentucky
Action.

                      About Dana Corporation

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).


DANA CORP: U.S. Trustee Amends Non-Union Retiree Committee Members
------------------------------------------------------------------
Diana G. Adams, acting United States Trustee for Region 2,
appointed John A. Damusis to serve in the Official Committee of
Non-Union Retirees in Dana Corporation and its debtor-affiliates'
Chapter 11 cases.

Claudia J. Holstein is no longer a member of the Non-Union
Retirees Committee.

The Non-Union Retirees Committee is now composed of:

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

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

         3. John A. Damusis
            519 Connecticut Avenue
            Naperville, Illinois 60565
            Tel. No.: (630) 416-9742

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

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

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

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

                      About Dana Corporation

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. 21; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DAVIDSON DIVERSIFIED: Equity Deficit Widens to $8.4MM at June 30
----------------------------------------------------------------
Davidson Diversified Real Estate III, L.P., filed its second
quarter financial statements for the three months ended June 30,
2006, with the Securities and Exchange Commission on Aug. 14,
2006.

The Company incurred a $313,000 net loss on $1,066,000 of net
revenues for the three months ended June 30, 2006, compared to a
$751,000 net loss on $940,000 of net revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $12,754,000
in total assets and $21,224,000 in total liabilities, resulting in
an $8,470,000 stockholders' deficit.  The Company's total
stockholders' deficit at March 31, 2006, stood at $8,157,000.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1164

                        Going Concern Doubt

Ernst & Young LLP expressed substantial doubt about Davidson
Diversified's ability to continue as a going concern after
auditing the Company's financial statement for the year ended
Dec. 31, 2005.  The auditing firm pointed to the Company's
recurring operating losses and an accumulated deficit.

                   About Davidson Diversified

Based in Greenville, South Carolina, Davidson Diversified Real
Estate III, L.P., is a Delaware limited partnership organized in
July 1985.  The Company's primary business is to operate and hold
for investment existing income-producing residential real estate
properties.  The Company receives income from its property and is
responsible for operating expenses, capital improvements and debt
service payments under mortgage obligations secured by the
property.

The general partners of the Company are Davidson Diversified
Properties, Inc., the managing general partner, Freeman Equities,
Ltd., the associate general partner, and David W. Talley and James
T. Gunn, the individual general partners.


DE LA ROSA: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: De La Rosa Pharmacy, Inc.
        1500 East 6th Street
        Weslaco, Texas 78596

Bankruptcy Case No.: 06-70398

Type of Business: The Debtor is a licensed pharmacy.

Chapter 11 Petition Date: September 7, 2006

Court: Southern District of Texas (McAllen)

Judge: Richard S. Schmidt

Debtor's Counsel: John Kurt Stephen, Esq.
                  Cardena, Whitis, & Stephen, L.L.P.
                  100 South Bicentennial Boulevard
                  McAllen, Texas 78501-7050
                  Tel: (956) 631-3381

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
   Davis & Davis, PC                                     $50,205
   PO Box 1588
   Austin, TX 78767

   Dyer & Associates $50,123
   3700 North Tenth Street, Suite 105
   McAllen, TX 78501

   Top RX                                                $30,615
   P.O. Box 341127
   Bartlett, TN 38184-1127

   Gemco Medical                                         $20,376

   McKesson                                              $20,169

   Ridge Sharyland Med Ptnrs I                           $16,656
   c/o Inter National Bank

   Gulf South Medical Supply                             $12,434

   Anda, Inc.                                            $12,159

   Value In Pharmaceuticals                              $10,687

   Donna Plaza LLC                                       $10,000

   Blue Cross & Blue Shield of Texas                     $9,293

   Direct Capital Corporation                            $8,863

   Asereth Medical Services, Inc.                        $8,723

   Baxter Healthcare Corp.                               $8,579

   ParMed Pharmaceuticals                                $8,319

   AICCO, Inc.                                           $7,288

   MBNA America                                          $6,387

   Ross Products                                         $5,897

   Invacare Corporation                                  $5,763

   G.F.A.S. Acct. Intermed Gas Prod. Corp.               $5,661


DELPHI CORP: Pick Me, Equity Committee Tells Court
--------------------------------------------------
The Official Committee of Equity Security Holders appointed in
Delphi Corporation and its debtor-affiliates' bankruptcy case asks
the U.S. Bankruptcy Court for the Southern District of New York to
deny the request of the Official Committee of Unsecured Creditors
to prosecute, on behalf of the Debtors' estates, the Claims and
Defenses raised in a complaint against General Motors Corporation.

The Creditors' Committee had asserted that the Claims and Defenses
may support the recapture of billions of dollars in payments and
avoidance of obligations that the Debtors were forced to undertake
for GM's benefit.  The Claims and Defenses may also reduce or
eliminate the Defendants' claims against the Debtors.  According
to the Committee, successful prosecution of the Claims and
Defenses will increase dramatically the payout to unsecured
creditors.

Douglas L. Dethy, chairman of the Equity Committee says the
Debtors' claims, causes of action and defenses relating to General
Motors Corporation are of paramount interest and concern to the
Equity Committee.

Like the Official Committee of Unsecured Creditors, the Equity
Committee believes that GM improperly used the spin-off of the
Debtors to substantially improve its own balance sheet and
financial performance.

Since the Spin-Off, GM has dominated and controlled the Debtors
and caused them to incur substantial undue and unfair burdens for
GM's sole and exclusive benefit at the expense of the Debtors and
their shareholders, Mr. Dethy asserts.

The Equity Committee agrees with the conclusions of the Creditors
Committee that GM's conduct gives rise to significant affirmative
claims and causes of action against GM, and significant defenses
and objections to any claims GM may assert against the Debtors.

According to Mr. Dethy, this wrongful conduct gives rise to
numerous and substantial affirmative claims against GM worth about
$26 billion, based on the Equity committee's preliminary analysis.

However, the Equity Committee believes that giving the Creditors
Committee control to pursue the claims, causes of action and
defenses will not maximize the value of the Debtors' estates for
the benefit of all constituencies.  The Creditors Committee lacks
the incentive or obligation to realize the full value of the
claims, causes of action and defenses.

Mr. Dethy explains that successful prosecution of the claims and
defenses against GM would result in the increase of the Debtors'
estates by billions of dollars.  Because any value in the Debtors'
estates that exceeds the amounts necessary to pay creditors in
full belongs to holders of the Debtors' equity, recoveries from
the claims, causes of action and defenses belong to Delphi
shareholders.

Control of the claims, causes of action and defenses must lie with
those who owe equity holders fiduciary duties.  Mr. Dethy points
out that the Debtors, their officers, directors and various
professionals owe fiduciary duties directly to equity holders, and
have a clear and definitive burden, duty and obligation to achieve
the maximum recovery possible on the claims for the benefit of the
Debtors' estates and all stakeholders.

In the alternative, if the Court determines that the Debtors
should no longer control and have the authority to prosecute the
GM Claims and Defenses, the Equity Committee seek the authority to
file, serve and prosecute on behalf of the Debtors' estates the
claims, causes of action and defenses against GM and certain
former officers of the Debtors, and any other actions.

The Equity Committee recognizes and applauds the Creditors
Committee's substantial efforts to investigate, analyze and pursue
certain of the claims, causes of action and defenses against GM.
However, despite its efforts, the Creditors Committee does not
have the responsibility and accountability to all stakeholders to
realize maximum value for the claims, causes of action and
defenses.  Rather, the Creditors Committee has duties only to
unsecured creditors, and its obligation to maximize the value of
the claims, causes of action and defenses ends when unsecured
creditors are paid in full.

The Creditors Committee is not an advocate for the Debtors'
estates as a whole or for stakeholders other than those
represented by it, and its only concern and function are to obtain
a recovery that would pay its constituency the full amount it is
owed on their claims, Mr. Dethy adds.  The Creditors Committee
cannot be expected to zealously pursue any settlement in an amount
greater than the value of unsecured claims.  In fact, it would be
obligated to agree to any arrangement that pays creditors in full
regardless of the value that is truly due and owing the Debtors'
estates.  The recovery on the claims, causes of action and
defenses will be artificially capped at the amount necessary to
make the creditors whole.

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. 40; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


DELPHI CORP: Court Records About 100 Claim Transfers in August
--------------------------------------------------------------
The Clerk of the U.S. Bankruptcy Court for the Southern District
of New York recorded about a hundred claims against Delphi
Corporation and its debtor-affiliates changing hands in August
2006.

Argo Partners, ASM Capital, Contrarian Funds LLC, Longacre Master
Fund, Ltd., among others, again bought claims during the month.

Argo Partners bought eight claims in August from these parties:

   Transferor                            Claim Amount
   ----------                            ------------
   QNX Software Systems Ltd.                  $74,548
   ICR Inc.                                    97,621
   Crowley Tool Co.                            13,625
   Dane Systems Inc.                           30,454
   Abba Rubber International Inc.              10,530
   Fulton Industries Inc.                      49,489
   Environ International Corp.                 89,446
   Electric Service Co. Inc.                   35,863

Argo has offices at 12 West 37th Street, 9th Floor, in New York,
with contact number (212) 643-5443.

Meanwhile, ASM Capital bought at least 20 claims in August,
including:

   Transferor                            Claim Amount
   ----------                            ------------
   VPI Acquisition Corp.                     $285,141
   C-Plastics Corp.                            56,261
   Tobar Inc.                                 177,460

Contact ASM through Adam S. Moskowitz at telephone number
(516) 224-6040.  ASM is based in Woodbury, New York.

During the month, Bank of America NA transferred a $2,974,015
claim to Contrarian Funds LLC.

Other claims purchased by Contrarian are from these parties:

   Transferor                            Claim Amount
   ----------                            ------------
   Howard & Howard Attorneys PC              $233,285
   Howard & Howard Attorneys PC                 1,347
   Austin Tube Products Inc.                  137,996
   Premier Products Inc.                      145,309
   Premier Products Inc.                      147,402
   Intel Corp.                                 10,692
   Intel Americas Inc.                         83,274

Contrarian has offices at 411 West Putnam Avenue, S-225 in
Greenwich, Connecticut.  Contact person for Contrarian is Alpa
Jimenez.

Special Situations Investing Group Inc. bought some of the
largest claims during the month from Merrill Lynch Credit
Products LLC:

   Transferor                            Claim Amount
   ----------                            ------------
   Merrill Lynch Credit Products LLC       $9,157,458
   Merrill Lynch Credit Products LLC          123,917
   Merrill Lynch Credit Products LLC          223,391

STMicroelectronics Inc. also transferred its $1,454,529 claim to
Special Situations Investing.

Special Situations' contact information:

    c/o Goldman, Sachs & Co.
    85 Broad Street - 27th Floor
    New York, NY 10004
    Attn: Al Dombrowski
    Phone: (212) 902-4103

Furthermore, Longacre Master Fund, Ltd., bought these claims in
August:

   Transferor                            Claim Amount
   ----------                            ------------
   United Plastics Group, Inc.               $358,909
   United Plastics Group De Mexico            136,483
   Special Situations Investing Group         454,529
   Batesville Tool & Die Inc.                 620,519
   Batesville Tool & Die Inc.                 620,519
   Noma Company                               491,625

Longacre has offices at 810 Seventh Avenue, in New York.  Contact
person listed for Longacre is Vladimir Jelisavcic.

Goldman Sachs Credit Partners LP also made claim purchases during
the month.  In particular, Goldman Sachs bought five claims:

   Transferor                            Claim Amount
   ----------                            ------------
   M&Q Plastic Products                      $653,829
   M&Q Plastic Products                       653,829
   Asys Automation LLC                        182,213
   Ekra America Inc.                          238,567
   VDO Automotive SAS                       1,545,794

Goldman Sachs' offices are at the 42nd Floor of One New York
Plaza in New York.

Moreover, Motorola Inc. transferred three $8,358,154 claims and
two $19,360 claims to Temic Automotive of North America Inc. in
August.  Temic Automotive may be reached through Robert J. Patton
at 21440 West Lake Cook Road, in Deer Park, Illinois.

During the month, TI Group Automotive Systems LLC transferred a
$1,777,501 claim to APS Clearing Inc., which subsequently
transferred the claim to JPMorgan Chase Bank NA.

JPMorgan's contact information:

   JPMorgan Chase Bank, NA
   Attn: Neelima Veluvolu
   270 Park Ave, 17th Floor
   New York, NY 10017

Other investors that acquired claims during the period are
Midtown Claims LLC, Liquidity Solutions, Amroc Investments, Hain
Capital Holdings, Debt Acquisition, Fair Harbor Capital, and
Redrock Capital Partners.

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. 40; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


DURA AUTOMOTIVE: Defers Dividend Payment on Preferred Securities
----------------------------------------------------------------
Dura Automotive Systems, Inc., has elected to defer the dividend
payment on the 7-1/2% Convertible Trust Preferred Securities
issued by the Dura Automotive Capital Trust that would have
otherwise been paid on Sept. 30.  The 7-1/2% Convertible Trust
Preferred Securities are traded on the Nasdaq Global Market under
the symbol "DRRAP".

The terms of the Dura Automotive Capital Trust and the underlying
7-1/2% Convertible Subordinated Debentures due 2028 issued by the
Company to the Capital Trust permit the deferral of dividends and
the underlying interest payments on the Debentures for up to 20
consecutive quarters.

This is the first such deferral and any decision on any future
deferrals will be reviewed on a quarterly basis.  The deferral of
the dividend is consistent with the Company's ongoing evaluation
of its capital structure.

Headquartered in Rochester Hills, Michigan, DURA Automotive
Systems, Inc. -- http://www.duraauto.com/-- is an independent
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies, structural
door modules and exterior trim systems for the global automotive
and recreation & specialty vehicle industries.  DURA, which
operates in 63 locations, sells its products to every major North
American, Asian and European automotive original equipment
manufacturer and many leading Tier 1 automotive suppliers.  It
currently operates in 63 locations including joint venture
companies and customer service centers in 14 countries.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 1, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Dura Automotive Systems Inc. to 'CCC' from 'B-'.  The
rating outlook is negative.


EASTMAN KODAK: Signs Multi-Year Kiosk Contract with Wal-Mart
------------------------------------------------------------
Eastman Kodak Company has signed a new multi-year contract with
Wal-Mart for digital photo kiosk equipment and consumables.  The
deal will add 2,000 Kodak Picture Kiosks to 1,000 Wal-Mart stores
across the U.S.  Financial terms of the agreement were not
disclosed.

"This is proof that Kodak's digital innovation and understanding
of the consumer is a distinct competitive advantage," said Nicki
Zongrone, Kodak's Worldwide Kiosk General Manager and Vice
President, Consumer Digital Imaging Group. "Wal-Mart recognized
the benefit of Kodak's modular, upgradeable and flexible kiosk
platform to help their business grow and provide consumers with an
easy way to get high quality digital prints in as little as four
seconds."

Kodak's new G4 Picture Kiosk platform represents an entirely new
category of high performing photo kiosks, with significant
improvements in speed, performance, reliability and styling.  The
G4 Picture Kiosk supports all popular digital media formats,
digital scanning, and wireless printing via BLUETOOTH and infrared
technologies.

Kodak has more than 80,000 units installed at retail locations
across the globe, which provide self-service lab quality prints in
seconds to millions of consumers.

                     About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Company --
http://www.kodak.com/-- is a worldwide vendor of imaging
products and services.  The company is committed to a digitally
oriented growth strategy focused on four businesses: Digital &
Film Imaging Systems - providing consumers, professionals, and
cinematographers with digital and traditional products and
services; Health -- supplying the medical and dental professions
with traditional and digital imaging and information systems, IT
solutions, and services; Graphic Communications - providing
customers with a range of solutions for prepress, traditional
and digital printing, document scanning, and multi-vendor IT
services; and Display & Components - supplying original
equipment manufacturers with imaging sensors as well as
intellectual property and materials for the organic light-
emitting diode and LCD display industries.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 11, 2006,
Moody's Investors Service placed Eastman Kodak Company on review
for possible downgrade.  Ratings under review include the
Company's B1 Corporate Family Rating; B2 Senior Unsecured Rating;
and Ba3 rating on the Senior Secured Credit Facilities.

Moody's review continues to focus on the company's potential sale
of the Kodak Health Group as well as the fundamental operating
performance of the company.

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Standard & Poor's Ratings Services placed its ratings on Eastman
Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative
implications.  The Rochester, New York-based imaging company had
$3.5 billion in debt as of June 30, 2006.


EDDIE BAUER: To Open Stores in Georgia, Pennsylvania & California
-----------------------------------------------------------------
Eddie Bauer Holdings, Inc., plans to open a new store at Avenue at
West Cobb in Marietta, Georgia and at Shoppes at Susquehanna
Marketplace in Harrisburg, Pennsylvania, on Sept. 22, 2006, and at
the Westfield San Francisco Centre in San Francisco, California in
conjunction with the mall grand opening on Sept. 28, 2006.

Lisa Erickson, Eddie Bauer spokesperson, disclosed that the
Company is thrilled to be opening at the three locations, which
are surrounded by natural beauty that residents can embrace the
modern outdoor lifestyle.  Eddie Bauer is looking forward to
providing active customers with apparel and accessories that offer
the perfect mix of function and style.

The locations will open featuring the company's Fall 2006
Collection, including new denim and pants fits for men and women.
As part of the Grand Opening Celebration, customers will receive
exclusive new store offers including our "Free Day Out" promotion.

The new Avenue at West Cobb Eddie Bauer will join our existing
locations at Avenue at East Cobb, Town Center, Mall of Georgia,
Peachtree Mall and Macon Mall in the greater Atlanta area.

The new Westfield San Francisco Centre Eddie Bauer will join our
existing Stonestown store in the San Francisco area.

Headquartered in Redmond, Washington, Eddie Bauer Holdings, Inc.
-- http://www.eddiebauer.com/-- is a specialty retailer that
sells casual sportswear and accessories for the "modern outdoor
lifestyle."  Established in 1920 in Seattle, Eddie Bauer believes
the Eddie Bauer brand is a nationally recognized brand that stands
for high quality, innovation, style, and customer service.  Eddie
Bauer products are available at approximately 375 stores
throughout the United States and Canada, through catalog sales and
online at http://www.eddiebaueroutlet.com/ The Company also
participates in joint venture partnerships in Japan and Germany
and has licensing agreements across a variety of product
categories.  Eddie Bauer employs approximately 10,000 part-time
and full-time associates in the United States and Canada.

                          *     *     *

As reported in the Troubled Company Reporter on March 29, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on specialty apparel retailer Eddie Bauer Holdings Inc.
and the bank loan rating on Eddie Bauer Inc. to 'B' from 'B+'.
S&P says the outlook is negative.


ELEC COMMUNICATIONS: Withdraws Offer to Buy Liberty Bell Telecom
----------------------------------------------------------------
eLEC Communications Corp., withdrew its offer to buy all
outstanding membership interests of Liberty Bell Telecom LLC.

The Company previously signed a letter of intent to acquire
Liberty, a privately-held telecommunications company.

The Company disclosed that in contemplation of the acquisition, it
raised acquisition financing in the amount of $1.05 million from
Laurus Master Fund, Ltd., which are currently being held in a
restricted cash account pending the closing of the proposed
Liberty acquisition or another acquisition approved by Laurus.
The Company intends to seek the approval of Laurus for the release
of the funds for the acquisition of another entity or the release
of all or a portion of such funds for working capital purposes.

The Company further disclosed that if it is unable to obtain the
consent, the funds will be returned to Laurus to reduce the
Company's outstanding indebtedness.

eLEC Communications Corp. (OTCBB:ELEC) -- http://www.elec.net/--  
is a Competitive Local Exchange Carrier that offers local and long
distance calling plans to small business and residential
customers.  The Company sells under the names of New Rochelle
Telephone and eLEC Communications, and the Company delivers
telephone services.

                      Going Concern Doubt

As reported in the Troubled Company Reporter on March 7, 2006,
Nussbaum Yates & Wolpow, PC, expressed substantial doubt about
eLEC's ability to continue as a going concern after it audited the
Company's financial statements for the fiscal years ended Nov. 30,
2005 and 2004.  The auditing firm pointed to the Company's
recurring losses from operations.


FALCON AIR: Ch. 11 Trustee Wants Until Dec. 6 to Decide on Leases
-----------------------------------------------------------------
Kenneth A. Welt, the Chapter 11 Trustee appointed in Falcon Air
Express, Inc.'s chapter 11 case, asks the U.S. Bankruptcy Court
for the Southern District of Florida to extend until Dec. 6, 2006,
the period within which he can assume, assume and assign or reject
unexpired nonresidential real property leases.

Mr. Welt informs the Court that on June 29, 1999, the Debtor and
9500 Building, Ltd., entered into a lease for certain real
property located at 9500 Northwest 41st Street in Miami, Florida.
The original lease term expired July 31, 2004.  According to Mr.
Welt, the lease was extended through May 31, 2006, and the Debtor
has remained in possession of the premises since that period, as a
month-to-month tenant at will, on an agreed basis with the
landlord pursuant to the terms of the lease and the parties'
Court-approved stipulation entered July 7, 2006.

Mr. Welt and the Debtor intend to relocate to another building
located at 9000 Northwest 15th Street in Miami, Florida, pursuant
to a commercial property lease entered between the Debtor and
Lakes Edge Commercial Properties, LLC, on or about March 14, 2005.
The new lease had a five-year term.

Mr. Welt considers the Debtors' interests in the leases and rights
as valuable property leases.  In addition, the new lease has a
valuable purchase option that is attractive to prospective buyers
of the Debtor's business.

The extension, Mr. Welt says, will allow him to decide on leases
in connection with a Section 363 sale or Chapter 11 Plan, and to
avoid substantial administrative expenses to the estate by
preventing assumption of the new lease prior to sale of the
business or Plan confirmation.

Headquartered in Miami, Florida, Falcon Air Express, Inc. --
http://www.falconairexpress.net/-- is a small and low-cost
airline company that provides charter service and renders foreign
and U.S. carriers sub-services on schedules routes.  The Debtor
and its affiliate, MAJEL Aircraft Leasing Corp., filed for chapter
11 protection on May 10, 2006 (Bankr. S.D. Fla. Case Nos. 06-11877
& 06-11878).  Brian G. Rich, Esq., at Berger Singerman, P.A.,
represents the Debtors in their restructuring efforts.  Peter D.
Russin, Esq., and Michael S. Budwick, Esq., at Meland Russin &
Budwick, P.A., represent the Official Committee of Unsecured
Creditors.  On June 26, 2006, Kenneth A. Welt was appointed as the
Debtor's Chapter 11 Trustee.  Ariel Rodriguez, Esq., and Frank P.
Terzo, Esq., at Katz Barron Squitero Faust represents the Chapter
11 Trustee.  When the Debtors filed for protection from their
creditors, they estimated assets and debts between $10 million and
$50 million.


FLEETWOOD ENT: Weak Demand Prompts Moody's to Downgrade Ratings
---------------------------------------------------------------
Moody's Investors Service lowered the Corporate Family Rating of
Fleetwood Enterprises, Inc. to B3 from B2, and affirmed the Caa3
rating of the company's $160 million trust preferred securities
due 2028.  The outlook is negative.

The downgrade reflects Moody's expectation that demand in
Fleetwood's recreational vehicle and manufactured housing markets
will remain weak through 2006, and that the resulting credit
metrics will weaken from the levels achieved during FYE April
2006.  Fleetwood's RV business will continue to be pressured by
high fuel prices, while the manufactured housing operations will
be burdened by the lack of sufficient funding sources for retail
customers, more stringent credit standards when retail funding is
available, and competition from the stock of repossessed units.
Demand in both sectors is expected to be further weakened by high
interest rates.

The negative outlook recognizes the risk that Fleetwood's credit
metrics and liquidity could continue to erode during the coming 6
to 9 months and that the company's liquidity profile could erode
unless operating conditions improve.

During FYE April, 2006 Fleetwood's operating and financial
performance benefited from the sale of emergency living units in
the aftermath of hurricane Katrina, the successful issuance of $66
million in common equity, and the sale of the retail and financial
services operations for $145 million.

As a result, credit metrics improved from April 2005 to April
2006, with interest coverage strengthening to 1.2x from negative
1.9x; debt dropping to 39.9% from 47.9%, and free cash flow
improving to negative $9 million from negative $130 million.
In addition, Fleetwood's available liquidity approximated a
comfortable $155 million.

During the first quarter ended July 2006, the market pressures
confronting the RV and manufactured housing operations began to
severely erode Fleetwood's operating performance compared with the
similar period of 2005.  Operating income fell to negative $8.2
million from negative $0.9 million, interest coverage dropped
below 1x, and free cash flow eroded to negative
$54.9 million from positive $17.1 million.  The company also
repurchased $31 million of its 6% trust preferred securities.
As a result of this transaction, and the erosion in operating
performance, Fleetwood's available liquidity declined to
approximately $62 million.

Fleetwood's operating performance and cash will remain depressed
through the quarter ending January 2007 due to weak market
fundamentals and the normal winter slowdown.  Performance could
begin to rebound during the spring selling season, particularly if
there is healthy market acceptance of new travel trailer products
being introduced by the company.  Sustaining adequate liquidity
during the coming two quarters will be critical.  Should the
erosion in Fleetwood's operating performance result
in a material reduction in the company's $62 million available
liquidity position, the ratings could be vulnerable to downgrade.

The affirmation of the Caa3 preferred stock rating reflects
benefits accruing from the company's $60 million issuance of
common equity which increased the amount of capital junior to the
preferred, and which enabled the company to come current on its
previously deferred preferred dividend payment.

Fleetwood Enterprises, Inc., headquartered in Riverside,
California, is a leading producer of recreational vehicles and
manufactured homes.


GRACE ASSOCIATES: Case Summary & Largest Unsecured Creditor
-----------------------------------------------------------
Debtor: Grace Associates Inc.
        151-21 Sixth Road
        Whitestone, NY 11357

Bankruptcy Case No.: 06-43325

Chapter 11 Petition Date: September 12, 2006

Court: Eastern District of New York (Brooklyn)

Debtor's Counsel: Matthew G. Roseman, Esq.
                  Cullen and Dykman Bleakley Platt LLP
                  100 Quentin Roosevelt Blvd.
                  Garden City, NY 11530
                  Tel: (516) 296-9106

Total Assets: $2,285,218

Total Debts:  $14,129,387

Debtor's Largest Unsecured Creditor:

   Entity                                 Claim Amount
   ------                                 ------------
   Grace Industries Inc.                      $129,388
   151-21 Sixth Road
   Whitestone, NY 11357


GRAY TELEVISION: High Leverage Prompts S&P's Negative Watch
-----------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on Gray
Television Inc., including the 'B+' corporate credit rating, on
CreditWatch with negative implications.  The company had total
debt, including preferred stock, of approximately $858 million
outstanding as of June 30, 2006.

"The CreditWatch placement recognizes that Gray's leverage is
meaningfully higher than our target leverage for the company at
the 'B+' rating level," said Standard & Poor's credit analyst
Heather M. Goodchild.

The leverage deterioration resulted from debt-financed
acquisitions and the absence of expected improvements in EBITDA
as a result of acquisitions in the first half of the year, and
from below-average same-station revenue growth in the first half
of 2006.

In resolving the CreditWatch listing, Standard & Poor's will
consider the overall operating outlook, including performance of
the newly acquired stations.  The rating agency will also assess
any actions the company could take to restore its leverage to less
than 6x and to maintain it at those levels in non-election years.

Based on Standard & Poor's current view of the company's business
and financial profile, it could lower the rating one notch, to
'B'.


GREAT COMMISSION: Court OKs Timothy Dixon as Special Bond Counsel
-----------------------------------------------------------------
The Honorable Mary D. France of the U.S. Bankruptcy Court for the
Middle District of Pennsylvania in Harrisburg authorized The Great
Commission Care Communities, Inc., dba The Woods at Cedar Run to
employ the Law Office of Timothy E. Dixon as its special bond
counsel.

The Firm will give professional services on matters involving
restructuring of the Debtor's bonds.

Timothy E. Dixon, Esq., discloses that attorneys of the Firm will
bill $275 per hour.

Mr. Dixon assures the Court that the Firm does not represent any
interest adverse to the Debtor.

The Firm can be contacted at:

      Law Office of Timothy E. Dixon
      201 North Charles Street, Suite 2206
      Baltimore, MD

Headquartered in Camp Hill, Pennsylvania, The Great Commission
Care Communities, Inc., dba The Woods at Cedar Run --
http://www.woodsatcedarrun.com/-- is a non-profit retirement
community providing independent housing and assisted living
services.  The company filed for chapter 11 protection on May 10,
2006 (Bankr. M.D. Penn. Case No. 06-00914).  Robert E. Chernicoff,
Esq., at Cunningham and Chernicoff, P.C., represents the Debtor.
David W. Carickhoff, Esq., at Blank Rome LLP represents the
Official Committee of Unsecured Creditors.  Howard S. Cohen, CPA,
at Parente Randolph, LLC, gives financial advice to the Committee.
When the Debtor filed for protection from its creditors, it
estimated assets between $1 million and $10 million and debts
between $10 million and $50 million.


HAWS & TINGLE: Has Continued Cash Collateral Access Until Nov. 20
-----------------------------------------------------------------
The Hon. Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas in Dallas authorized Haws & Tingle,
Ltd. to continue to use cash collateral securing repayment of its
debts to Zurich American Insurance Company.

The Debtor can access Zurich's cash collateral through Nov. 20,
2006.  The Cash collateral use is restricted by the terms of a
court-approved budget.  A copy of the budget is available for
free at http://ResearchArchives.com/t/s?116a

The cash collateral consists of income, receivables, and proceeds
received from or on account of the Debtor's prepetition or
postpetition business operations.

Zurich had issued one or more payment and performance bonds to
secure the Debtor's performance with respect to certain projects.
The Debtor says that Zurich is its only purported secured lender.

As reported in the Troubled Company Reporter on Oct. 11, 2005,
Zurich has filed over $2 million in claims against the Debtor.
Since Zurich filed a Form UCC-1 with the Secretary of State on
July 26, 2005 -- 90 days before the Debtor's chapter 11 filing --
to perfect its security interest, the Debtor says the purported
lien is subject to avoidance as a preference.

Mark E. Andrews, Esq., at Neligan Tarpley Andrews & Foley LLP,
told the Bankruptcy Court that Zurich is already adequately
protected since it is fully collateralized and the value of its
security interest will not decrease over time.

Headquartered in Fort Worth, Texas, Haws & Tingle, Ltd., is a
building contractor.  The Debtor filed for chapter 11 protection
on October 6, 2005 (Bankr. N.D. Tex. Case No. 05-82478).  Mark
Edward Andrews, Esq., and Omar J. Alaniz, Esq., at Neligan Tarpley
Andrews & Foley LLP represent the Debtor in its restructuring
efforts.  No Official Committee of Unsecured Creditors has been
appointed in this case.  When the Debtor filed for protection from
its creditors, it estimated assets and debts between $10 million
to $50 million.


HAWS & TINGLE: Wants Veritas Advisory as Financial Consultant
-------------------------------------------------------------
Haws & Tingle, Ltd., asks authority from the U.S. Bankruptcy Court
for the Northern District of Texas to employ Veritas Advisory
Group, Inc., as its financial consultant.

Veritas will provide services to assist the Debtor with the
litigation involving the Estate and Hensel Phelps.

Bradford L. Bright, member at Veritas Advisory discloses that the
firm's professionals bill:

            Professional                  Hourly Rate
            ------------                  -----------
            Vice President                $250 - $300
            Principal                     $195 - $215
            Manager                       $160 - $180
            Senior Consultant             $140 - $155
            Associate Consultant          $125 - $135

The Debtor discloses that Veritas is a creditor in its chapter 11
case but believes however that this status will not affect any
judgment because the amounts due Veritas represent less than 2% of
all unsecured claims and that Veritas has no interests which are
adverse to those of the Debtor's estate other than the Veritas'
prepetition claim.

Mr. Bright assures the Court that his firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not hold or represent any interest
adverse to the Debtor's estates.

                      About Haws & Tingle

Headquartered in Fort Worth, Texas, Haws & Tingle, Ltd., is a
building contractor.  The Debtor filed for chapter 11 protection
on October 6, 2005 (Bankr. N.D. Tex. Case No. 05-82478).  Mark
Edward Andrews, Esq., and Omar J. Alaniz, Esq., at Neligan Tarpley
Andrews & Foley LLP represent the Debtor in its restructuring
efforts.  No Official Committee of Unsecured Creditors has been
appointed in this case.  When the Debtor filed for protection from
its creditors, it estimated assets and debts between $10 million
to $50 million.


HAYES LEMMERZ: S&P Affirms B- Rating & Removes Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' corporate
credit rating on Hayes Lemmerz International Inc. and removed
the rating from CreditWatch with negative implications, where
it was placed Aug. 21, 2006.  The outlook is negative.

The Northland, Michigan-based wheel manufacturer has total
adjusted debt of about $780 million plus underfunded employee
benefit obligations of approximately $390 million.

The rating affirmation follows a review of the impact of Ford
Motor Co.'s recently announced plans to sharply reduce vehicle
production in the fourth quarter of 2006.

"We have concluded that the negative impact on Hayes' earnings
and cash flow will be partially offset by gradually improving
performance in the company's international operations," said
Standard & Poor's credit analyst Gregg Lemos Stein.

This should enable Hayes to maintain credit measures consistent
with its already low speculative-grade rating.

While Hayes generates about 20% of its total sales from Ford,
about half of that comes from outside North America, where Ford's
production cuts are focused.  Hayes' sales from General Motors
Corp. and the Chrysler unit of DaimlerChrysler AG are also well
diversified between North America and Europe.

Hayes' guidance for the full year ending Jan. 31, 2007, remains
unchanged because of the automakers' production cuts, with the
company expecting $2.2 billion to $2.3 billion of sales and a
slight improvement on last year's $176 million of EBITDA.

Hayes' business risk profile remains weak.  The company's
financial results have suffered in recent years because of the
difficult industry conditions facing automotive suppliers,
including:

   * high raw-material costs,
   * customer market-share shifts,
   * product-mix changes, and
   * pricing pressure.

While Hayes has a leadership position in wheel manufacturing, the
business is highly fragmented and intensely competitive.

In response to these challenges, Hayes has announced various
restructuring and austerity measures, including:

   * the closing of a U.S. aluminum wheel plant;
   * the consolidation of several business units; and
   * the reduction of certain employees' compensation.

The various cost-cutting actions are expected to save the company
$35 million annually, partially offsetting the impact of soft
industry volumes, pricing pressures, and adverse product mix.


HECTOR DE LA ROSA: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Hector & Terri De La Rosa
        dba De La Rosa Pharmacy of Mercedes
        1210 Hacienda del Sol
        Weslaco, Texas 78596

Bankruptcy Case No.: 06-10586

Chapter 11 Petition Date: September 8, 2006

Court: Southern District of Texas (Brownsville)

Judge: Richard S. Schmidt

Debtors' Counsel: Eduardo V. Rodriguez, Esq.
                  1265 North Expressway 83
                  Brownsville, Texas 78521
                  Tel: (956) 547-9638
                  Fax: (956) 547-9630

Estimated Assets: Less than $50,000

Estimated Debts:  $1 Million to $10 Million

The Debtors did not file a list of their 20 Largest Unsecured
Creditors.


INSIGHT COMMS: Plans to Refinance $2.575 Billion Midwest Debt
-------------------------------------------------------------
Insight Communications disclosed plans to refinance certain
indebtedness of Insight Midwest.  The refinancing contemplates
increased term and revolving credit facilities aggregating
$2.575 billion and using proceeds to redeem all of Insight
Midwest's 10-1/2% Senior Notes due November 1, 2010, and a portion
of its 9-3/4% Senior Notes due October 1, 2009.

Closing of the contemplated credit facilities is expected to occur
in early October.  Insight has engaged Bank of America Securities
LLC and J.P. Morgan Securities Inc. to arrange and syndicate the
refinancing.

Insight Communications (NASDAQ: ICCI) is the 9th largest cable
operator in the United States, serving approximately 1.3 million
customers in the four contiguous states of Illinois, Indiana,
Ohio, and Kentucky.  Insight specializes in offering bundled,
state-of-the-art services in mid-sized communities, delivering
analog and digital video, high-speed Internet, and voice telephony
in selected markets to its customers.

                         *     *     *

Insight carries Fitch Ratings' B+ Issuer Default Rating.  Fitch
also rates the Company's senior unsecured notes at 'CCC+'.
Approximately $2.8 billion of debt is affected by Fitch's ratings.


INTERSTATE BAKERIES: Wants to Enter Into Intercompany Tolling Pact
------------------------------------------------------------------
Interstate Bakeries Corporation and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Western District
of Missouri to enter into a Tolling Agreement to allow them to
preserve any Intercompany Claim that might be subject to any
statute of limitations or similar rule of law or equity.

The Debtors have undertaken an analysis of certain potential
actions involving third parties, in anticipation the
September 22, 2006, deadline for them to pursue certain actions
pursuant to Sections 108 and 546 of the Bankruptcy Code.

However, the Debtors have not undertaken any material effort to
investigate potential claims against each other, except to the
extent the claims are disclosed on their books and records or on
their Schedules of Assets and Liabilities, Paul M. Hoffman, Esq.,
at Stinson Morrison Hecker, LLP, in Kansas City, Missouri, tells
the Court.

The Debtors have not yet filed a plan of reorganization.  Whether
or not the Debtors or any other party will actually prosecute all
of the Intercompany Claims pursuant to a confirmed plan of
reorganization is not known, Mr. Hoffman says.

Mr. Hoffman states that each Debtor is willing to enter into
tolling agreements to avoid the cost and inconvenience associated
with the possible commencement of litigation arising from the
Potential Claims.

The salient terms of the Tolling Agreement are:

   (a) The running of any statute of limitations or any rule of
       law with respect to any Potential Claims will be tolled
       during the period from the date the Tolling Agreement is
       approved until 90 days after the effective date of any
       confirmed plan of reorganization;

   (b) The Tolling Agreement will not be construed as the date on
       which the Statute of Limitations for any Potential Claim
       begins or ends, or as an admission as to the date on which
       the Statute of Limitations for any Potential Claim begins
       or ends.  It will not be taken as an admission by the
       parties as to the applicability of any Statute of
       Limitations as to any Potential Claim;

   (c) The Agreement will not be treated as reviving any Statute
       of Limitations that has expired before September 20, 2006;
       and

   (d) By entering into the Agreement, each Debtor does not admit
       that any valid claim exist or that any other Debtor has
       standing to assert those claims.  Each of the Debtors
       reserves all rights, arguments and defenses to any
       Potential Claim.

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due August 15, 2014 on August 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 47; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


INTERSTATE BAKERIES: Wants Preference & Adversary Actions Pursued
-----------------------------------------------------------------
Interstate Bakeries Corporation and its debtor-affiliates seek
permission from the U.S. Bankruptcy Court for the Western District
of Missouri to pursue certain preference and other adversary
actions.

The Debtors also ask the Court to approve uniform procedures for
the pursuit of the Potential Actions.

Pursuant to Sections 108 and 546 of the Bankruptcy Code, the
deadline for the Debtors to pursue certain actions will expire on
Sept. 22, 2006.

In anticipation of the deadline to commence avoidance actions,
the Debtors have undertaken analysis of certain potential
actions, including:

   -- potential actions under Sections 544, 555, 547, 548 and 554
      of the Bankruptcy Code; and

   -- potential actions that may be subject to Section 108,
      including state law fraudulent conveyance actions and
      derivative claims.

As a result of the diligence, the Debtors have identified a
number of potential claims that can be asserted against a number
of potential parties.

The Debtors have shared the results of the diligence with the
Official Committee of Unsecured Creditors, the Official Committee
of Equity Security Holders, and JPMorgan Chase Bank, N.A.,
subject to confidentiality agreements.

The Debtors propose to:

   (a) enter into tolling agreements with certain parties;

   (b) file adversary actions against certain other parties; and

   (c) abandon claims against all other parties that may be
       subject to the Avoidance Action Deadline.

The Debtors intend to abandon all Potential Actions against any
party not covered by a Tolling Agreement entered, or an adversary
proceeding filed, before Sept. 22, 2006.

The Debtors seek to abandon particular Potential Actions,
including those covered by a Tolling Agreement entered, or an
Adversary Proceeding filed, before Sept. 22, 2006, if no
written objection is received.

As to Potential Preference Actions, the Debtors seek to file a
single Complaint, instead of filing separate adversary
proceedings against each defendant.

Paul M. Hoffman, Esq., at Stinson Morrison Hecker, LLP, in Kansas
City, Missouri, relates that the Debtors have reviewed a list of
all parties that received potential Preferences, and have
identified a number of reasons for not pursuing preference
actions against certain parties, including:

   -- providing important unsecured postpetition credit to the
      Debtors, or

   -- being a sole source provider, or providing certain material
      and unique benefits, to the Debtors that would be difficult
      to replace.

A list of the Potential Preference Parties is available for free
at http://ResearchArchives.com/t/s?1161

The Debtors reserve the right to waive or abandon any potential
Preference claims against one or more of the parties, or enter
into tolling agreements, before or after filing of the Complaint.

The Debtors also intend to defer the commencement of the 120-day
period to obtain service of process under Rule 7004 of the
Federal Rules of Bankruptcy Procedure on the Proposed Actions
until up to 90 days after the effective date of any confirmed
plan.

Mr. Hoffman argues that establishing the procedures to pursue
Potential Actions will allow the Debtors to preserve their ability
to pursue certain actions that might otherwise expire on Sept. 22,
2006, and simultaneously allow them to continue working on and
negotiating a potential plan of reorganization that may or may not
include prosecution of some or all of the Proposed Actions.

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due August 15, 2014 on August 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 47; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


KMART CORP: Court Denies Request to Stay Discovery on Eagle Claims
------------------------------------------------------------------
For reasons stated in open court, the Honorable Susan Pierson
Sonderby of the U.S. Bankruptcy Court for the Northern District of
Illinois denied without prejudice Kmart Corporation's request to
stay discovery relating to Eagle Janitorial Services Inc.'s
invoices and claims against the Debtor's stores in California.

The Troubled Company Reporter on Aug. 24, 2006 relates that
Kmart sought summary judgment from the Court to disallow:

    (i) Eagle Janitorial's claim for services performed in
        California; and

   (ii) any claim for interest, other charges, or not otherwise
        supported with documentation.

On July 29, 2002, Eagle Janitorial filed Claim No. 36815 asserting
$329,452 for janitorial services provided to Kmart stores located
in four states.

The Claim is based on 201 invoices, of which 193 are for services
provided to Kmart stores in California.  The invoices show
charges totaling $214,075, which is $115,377 less than the face
amount of Claim No. 36815.

Of the Total Invoice Amount, $201,860 is for services rendered to
Kmart stores in California.

Kmart objected to Eagle's claim asserting that the claim lacked
sufficient documentation based on Kmart's books and records.

In response, Eagle contended that its entire claim is valid
based on California's limitation of action statutes and applicable
California case law, which provide that Eagle's entire Claim is
subject to a four-year statute of limitation that begins
to run on the last date of service or payment by Kmart of the
account.

Eagle also contended that it was unable to state what Kmart's
records might show because Kmart has refused to respond
to Eagle's discovery requests and that the non-existence of
documents in Kmart's books and records is far from
conclusive that Kmart is not liable for Eagle's Claim.

                        About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S.
Virgin Islands and Guam.  The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring
efforts.  The Company's balance sheet showed $16,287,000,000 in
assets and $10,348,000,000 in debts when it sought chapter 11
protection.  Kmart bought Sears, Roebuck & Co., for $11 billion to
create the third-largest U.S. retailer, behind Wal-Mart and
Target, and generate $55 billion in annual revenues.  The waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of
Justice.  (Kmart Bankruptcy News, Issue No. 116; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000)


KMART CORP: Striking Penn. Workers Negotiate for Better Contract
----------------------------------------------------------------
On Aug. 30, 2006, about 400 members of the United Auto Workers
Union Local 8275 in Kmart Corp.'s distribution center in Falls,
Pennsylvania, went on strike after their three-year contract with
Kmart expired, Winslow Mason, Jr., of Bucks County Courier Times
reports.

The paper says formal negotiation, which began on September 4,
2006, is ongoing between Kmart's officials and union
representatives.

UAW Spokeswoman Patty Hentz told the paper that the workers
rejected a contract that would have required them to pay the full
cost of their health insurance.

Among other things, the striking Kmart workers demand:

    * a cost-of-living wage increase;

    * a freeze that would prevent Kmart from changing health
      benefits coverage during the length of the contract; and

    * Kmart to do away with a quota system that requires workers
      to load or unload a set amount of packages per day or risk
      losing their jobs.

The union wants all workers to qualify for the same top pay
scale, Mr. Mason reports.

                        About Kmart Corp.

Headquartered in Troy, Michigan, Kmart Corporation nka KMART
Holding Corporation -- http://www.bluelight.com/-- operates
approximately 2,114 stores, primarily under the Big Kmart or Kmart
Supercenter format, in all 50 United States, Puerto Rico, the U.S.
Virgin Islands and Guam.  The Company filed for chapter 11
protection on January 22, 2002 (Bankr. N.D. Ill. Case No.
02-02474).  Kmart emerged from chapter 11 protection on May 6,
2003.  John Wm. "Jack" Butler, Jr., Esq., at Skadden, Arps, Slate,
Meagher & Flom, LLP, represented the retailer in its restructuring
efforts.  The Company's balance sheet showed $16,287,000,000 in
assets and $10,348,000,000 in debts when it sought chapter 11
protection.  Kmart bought Sears, Roebuck & Co., for $11 billion to
create the third-largest U.S. retailer, behind Wal-Mart and
Target, and generate $55 billion in annual revenues.  The waiting
period under the Hart-Scott-Rodino Antitrust Improvements Act
expired on Jan. 27, without complaint by the Department of
Justice.  (Kmart Bankruptcy News, Issue No. 116; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-
7000)


KRYSTAL POINT: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Krystal Point Ventures, LLC
        dba KPV Environmental
        2824 North Power Road #113-278
        Mesa, Arizona 85215

Bankruptcy Case No.: 06-02805

Type of Business: The Debtor owns and operates two divisions:
                  Real Estate and Environmental Waste Management.
                  See http://www.krystalpointventures.com/

Chapter 11 Petition Date: September 5, 2006

Court: District of Arizona (Phoenix)

Judge: Charles G. Case II

Debtor's Counsel: Allan D. Newdelman, Esq.
                  Allan D. Newdelman, PC
                  80 East Columbus Avenue
                  Phoenix, Arizona 85012
                  Tel: (602) 264-4550
                  Fax: (602) 277-0144

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $500,000 to $1 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Bennett Family Trust          Loan                      $433,400
218 B. Street
Vallejo, CA 94590

Mavicar Environmental         Consultants               $152,470
2800 Mountain Road
Harrisburg, PA

Hammons Family Trust          Loan                       $83,086
2929 North Power Road #107
Mesa, AZ 85215

Peri Brown Trust              Loan                       $79,234

Classic Conveyor              Services                   $30,032

Pensco Trust CO FPO           Loan                       $30,000

Pensco Trust CO FBO           Loan                       $25,000

S. Degory, Esq.               Legal Fees                 $20,000

Tauro Brothers Trucking       Services                   $14,574

Klett Rooney, Esq.            Legal Fees                 $13,014

Anderson Electric             Services                   $12,338


Cambria Tractor               Claimed Balance            $11,552
                              lease judgment

Van Nor & Assoc               Legal Fees                  $9,400

CWM Testing                   Services                    $5,375

Maudie Trucking               Services                    $5,253

Armstrong Security            Services                    $4,746

Mcguire Woods                 Legal Fees                  $4,538

Erie Insurance                Bond/Premium Payment        $4,446

CNH CAPITAL                   Claimed Lease               $3,798
                              payment

Hillcrest Group               Services                    $3,546


LIGAND PHARMA: Sells Avinza to King Pharma for $313 Mil. in Cash
----------------------------------------------------------------
Ligand Pharmaceuticals Incorporated has signed a definitive asset
purchase agreement to transfer the assets associated with AVINZA
to King Pharmaceuticals, Inc.

The purchase price is a combination of aggregate up-front cash
consideration of $313 million, plus a tiered royalty agreement,
which survives until the patent expiration in Nov. 2017.

Under the terms of the asset purchase agreement King will make a
$265 million payment to the Company to acquire all rights to
AVINZA in the United States, its territories and Canada.  In
addition, King will assume a product-related liability owed to
Organon totaling $48 million and all other existing product
royalty obligations.

In addition to existing royalty obligations, King will pay the
Company a 15% royalty during the first 20 months after the closing
date.  Subsequent royalty payments will be based upon calendar
year net sales.

The Company also disclosed that it has entered into a separate
contract sales agreement, under which King has been granted the
right to and will promote AVINZA during a transition period until
closing of the asset purchase agreement.

The Company further disclosed that the asset purchase and contract
sales agreements have been approved by the board of directors of
each company and is subject to approval by its stockholders, at a
special meeting anticipated to be before the year-end.  The
transaction is also subject to Hart-Scott-Rodino clearance.

Under the terms of the agreement, King has agreed to minimum
monthly product details through 2009 and has agreed to hire the
Company's specialty pain sales representatives.  In conjunction
with the Company's specialty sales force, King will support AVINZA
with both its Primary Care and Neuroscience Specialty sales
representatives.  The Company will pay King a customary fee for
each product detail and certain marketing and promotional expenses
as agreed between the parties.

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)
-- http://www.ligand.com/-- discovers, develops and markets new
drugs that address critical unmet medical needs of patients in the
areas of cancer, pain, skin diseases, men's and women's hormone-
related diseases, osteoporosis, metabolic disorders, and
cardiovascular and inflammatory diseases.  Ligand's proprietary
drug discovery and development programs are based on gene
transcription technology, primarily related to intracellular
receptors.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 16, 2006
Ligand Pharmaceuticals Incorporated's balance sheet at
June 30, 2006 showed total assets of $285.9 million and total
liabilities of $524.4 million resulting in a stockholders' deficit
of $238.5 million.  This compares to a stockholders' deficit of
$110.4 million at Dec. 31, 2005.


LIGAND PHARMA: Sells Oncology Product Line to Eisai for $205 Mil.
-----------------------------------------------------------------
Ligand Pharmaceuticals Incorporated has signed a definitive
agreement to sell its oncology product line and the associated
assets to Eisai Co., Ltd., Tokyo, and Eisai Inc., New Jersey.

The sale includes the Company's four marketed oncology drugs:
ONTAK, Targretin capsules, Targretin gel and Panretin gel.

The Company disclosed that the asset purchase agreement and
related contracts have been approved by relevant executive
committee and/or boards of directors of the companies, but is,
however, subject to Hart-Scott-Rodino clearance, and is expected
to close soon afterwards.

Under the terms of the asset purchase agreement, the Company will
receive cash of $205 million and Eisai will assume all future
royalty payment obligations for the products.  Eisai will receive
from the Company all rights to the products worldwide including
the related intellectual property and licenses, transfer of
product inventory, and the assignment of certain agreements,
principally patent licenses and supply and distribution
agreements.

Henry F. Blissenbach, chairman and interim chief executive
officer, stated, "We have now sold our two commercial operations
for aggregate cash consideration of $518 million, and have also
retained a significant royalty participation in AVINZA - which we
believe will provide extraordinary value to the Company as a
result of the excellent sales capabilities of King
Pharmaceuticals.  The shareholder value maximization process will
remain ongoing as we continue to identify sources of value for
Ligand's shareholders.  With the sale of our commercial
operations, Ligand will become a dynamic and highly-specialized
R&D and royalty company.  On the royalty front, we are excited
about the future income streams from AVINZA (through Nov. 2017)
and are also optimistic about potential milestones and royalties
from GSK's Promacta, Wyeth's Bazedoxifene, and Ligand's several
other clinical-stage partnered products.  By the end of 2006,
Ligand expects to have new corporate leadership, to have
restructured and narrowly focused its research and development
endeavors in order to focus on our most promising compounds (two
of which we expect will be going into clinical trials before year
end), and to minimize its expense structure with a goal to be both
earnings and cash-flow positive."

Ligand Pharmaceuticals Incorporated (NASDAQ:LGND)
-- http://www.ligand.com/-- discovers, develops and markets new
drugs that address critical unmet medical needs of patients in the
areas of cancer, pain, skin diseases, men's and women's hormone-
related diseases, osteoporosis, metabolic disorders, and
cardiovascular and inflammatory diseases.  Ligand's proprietary
drug discovery and development programs are based on gene
transcription technology, primarily related to intracellular
receptors.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 16, 2006
Ligand Pharmaceuticals Incorporated's balance sheet at
June 30, 2006 showed total assets of $285.9 million and total
liabilities of $524.4 million resulting in a stockholders' deficit
of $238.5 million.  This compares to a stockholders' deficit of
$110.4 million at Dec. 31, 2005.


LINENS 'N THINGS: Posts $39.1 Mil. Net Loss in Qtr. Ended July 1
----------------------------------------------------------------
Linens Holding Co. filed its financial results for the second
quarter ended July 1, 2006, with the Securities and Exchange
Commission.

The Company reported total net sales of $611.6 million for the
quarter, a 6.7% increase over the same quarter in 2005.  This
increase in net sales resulted from the opening of new store
locations and a slight increase of 0.2% in comparable net sales
for the quarter.

For the quarter, the Company generated a loss before interest,
income taxes, depreciation and amortization of $10.2 million
compared to positive EBITDA of $13.7 million in the second quarter
of 2005.  The decrease in EBITDA was due primarily to markdowns
taken to clear nonproductive and aged inventory and the effects of
purchase accounting on occupancy costs.

Adjusted EBITDA for the second quarter of 2006, which excludes the
impact of transaction expenses from the February 2006 acquisition
of Linens 'n Things, Inc., rent-related adjustments, one-time
inventory reserves and other non-recurring or non-cash expenses,
was negative $14.6 million compared with positive Adjusted EBITDA
of $16.6 million in the second quarter of 2005.

The Company generated a net loss for the second quarter of 2006 of
$39.1 million compared with a net loss of $5.9 million in the
second quarter of 2005.

"During this past quarter we began to actively reposition our
business.  Merchandising initiatives, such as 'Best Bets' and
intensification of our top stores began to build momentum.  We
also used this time frame to clear nonproductive merchandise,
which while resulting in increased markdowns, did create open to
buy dollars and helped to improve store operations," Robert
DiNicola, chairman and chief executive officer, said.

"Long term we expect to recapture market share with improving
assortments, better execution at the store level and more
impactful marketing," Mr. DiNicola added.

For the second quarter, the Company used cash in operating
activities of $19.4 million, ending the quarter with a short-term
borrowing position net of cash balances of $141.6 million and
excess availability under its revolving credit facility of
$280.3 million.

Net sales for the 26-week period ended July 1, 2006, increased
5.3% to $1.204 billion, as compared with net sales of
$1.144 billion for the same period last year.  Comparable net
sales for the twenty-six week period ended July 1, 2006, decreased
1.8%.

Net loss for the 26-week period ended July 1, 2006, was
approximately $104.6 million as compared with a net loss of
$10 million for the same period last year.

During the second quarter of 2006, the Company opened six stores
as compared with opening 17 stores during the second quarter of
2005.  Store square footage increased approximately 6.5% to
18.5 million at July 1, 2006, compared with 17.3 million at
July 2, 2005.

At July 1, 2006, the Company had $652.0 million of total long-term
debt outstanding.  For the second quarter of 2006, the Company had
capital expenditures of $16.7 million.

At July 1, 2006, the Company's balance sheet showed $2.049 billion
in total assets, $1.454 billion in total liabilities, and
$595 million in total shareholders' equity.

Full-text copies of the second quarter financials are available
for free at http://ResearchArchives.com/t/s?1168

Linens 'n Things -- http://www.lnt.com/-- is a national, large
format retailer of home textiles, housewares and home accessories.
As of July 1, 2006, Linens 'n Things operated 555 stores in 47
states and six provinces across the United States and Canada.

                           *     *     *

Fitch initiated rating coverage of Linens 'n Things, Inc., in
February 2006.  Fitch assigned issuer default rating at 'B-';
asset-based revolver at 'BB-/RR1'; and senior secured notes
'B-/RR4'.  Fitch said the rating outlook is negative.

Standard & Poor's Ratings Services assigned its single 'B'
corporate credit rating to specialty home furnishings retailer
Linens 'n Things Inc.  At the same time, Standard & Poor's
assigned its single 'B' secured debt rating and a recovery rating
of '2' to the $650 million senior secured floating-rate notes due
2014 to be co-issued by Linens and Linens 'n Things Center Inc.

Moody's Investors Service assigned first time ratings to
Linens 'N Things, Inc., February 2006.  Moody's assigned corporate
family rating at B3; $650 Million of senior secured guaranteed
notes due 2014 at B3; and speculative grade liquidity rating at
SGL-3.  Moody's said the outlook is stable.


LONGYEAR HOLDINGS: Purchase Plan Cues Moody's to Hold Ratings
-------------------------------------------------------------
Moody's Investors Service affirmed existing ratings but changed
its rating outlook for Longyear Holdings, Inc. to negative from
stable following the announcement last week that a consortium led
by Macquarie Bank plans to acquire a 51% stake in Longyear.

Current owners Advent International, Bain Capital, and management
collectively will retain a 49% ownership interest.  In connection
with this expected change in ownership, new financing in the
amount of $1,395 million will be arranged.  The new financing,
plus $213 million in new equity, will be used to retire existing
debt of about $575 million, acquire capital stock from existing
shareholders, fund the pending acquisition of DrillCorp Limited,
and pay related fees and expenses.

Moody's believes that all of Longyear's existing debt will be
retired and that the current ratings will be withdrawn at the
conclusion of the proposed transaction.  Therefore, the negative
rating outlook applies to Longyear's B2 corporate family rating
and reflects the heightened risks associated with the proposed
transaction given a twofold increase in debt.

Moody's affirmed these ratings:

   * B2 corporate family rating,

   * B2 for the senior secured first lien revolving credit
     facility and term loan, and

   * Caa1 for the $75 million senior secured second lien term
     loan.

Longyear Holdings, Inc. is a global supplier of services and a
manufacturer of equipment and products to the natural resource,
environmental, water, energy, and construction industries.  In
2005, it had sales of just over $1 billion.


LUXELL TECH: Board Names Alec Couckuyt as Chief Executive Officer
-----------------------------------------------------------------
The Board of Directors of Luxell Technologies Inc. appointed Alec
G. Couckuyt, as Chief Executive Officer, effective Sept. 11, 2006.

The appointment of Mr. Couckuyt concludes the 4th of 5 stages that
the Board of Directors reported in November 2005 consistent with
the ongoing restructuring of Luxell.

"Our appointment of Mr. Couckuyt concludes a 3 month extensive
search for a new CEO, and meets the objectives of the search
committee and the Board. Our three core requirements were prior
experience with restructuring companies, a proven leader with
turnaround expertise, and someone who is willing to back-up their
perspective on the future of Luxell with a significant
investment," John MacDonald, Interim CEO and Chairman of the Board
states.  "Alec meets and exceeds these core requirements and the
Board is confident and expectant that Alec can lead the next phase
of Luxell to realizing on the profit potential of all the
investment made by shareholders."

Prior to joining Luxell, Mr. Couckuyt owned and operated a private
consulting company, AGC Consulting, which assisted Senior
Executives in maximizing their company's business potential.  His
most recent assignment, which is currently winding down, was with
EDS of Plano, Texas.  Prior to forming AGC Consulting, Mr.
Couckuyt held senior executive positions with Symcor Inc., a
financial outsourcing services firm as Senior Vice President of
Operations; with Transcontinental Inc., which specializes in
printing products for the North American Direct Marketing
industry, as Vice-President of Direct Marketing; and with AGFA-
Gevaert, a German-Belgian multi-national with businesses in
Graphic Arts, Medical Diagnostics and Photo Imaging products, as
Vice-President of Graphic Arts Systems, with both local and
international postings.

Mr. Couckuyt said that he was "excited to take this position with
Luxell at this point in the company's life.  There is excellent
core expertise and we must focus on taking advantage of this
expertise in moving the bottom line to a profit position.  I
believe there are real opportunities for Luxell in the marketplace
and we must be very specific in how we target and deliver on those
opportunities."

Mr. MacDonald, who has followed the successful career of Mr.
Couckuyt for several years, remarked, "Alec has a proven record of
leading change and making money for shareholders, and our Board is
confident he has the ability to do that here at Luxell.  We're
very optimistic about the operating and marketing strategies he
has discussed with us and greatly value the importance he places
on partnership relationships with everyone from employees, to
customers and suppliers."

                          About Luxell

Luxell Technologies Inc. (TSX: LUX) -- http://www.luxell.com/
http://www.aktelux.com/and http://www.luxellresearch.com/--  
designs, manufactures and licenses flat panel display technologies
and solutions for defence and avionics industries through its
operating divisions Aktelux and Luxell Research.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 30, 2006, Mr.
MacDonald stated, "...the Company's Board of Directors has
determined the best option to realize a possible future for the
Company, its shareholders, employees, suppliers and customers, is
to file a proposal to creditors under the Bankruptcy and
Insolvency Act, which will take a minimum of 45 days to complete
and provide the Company with a complete stay on any creditor
proceedings."

In order to continue operations, the Company sought new financing
for $1 million of Debtor-in-Possession Financing to provide the
Company with working capital as well as to fund C.O.D. payments to
suppliers.  This additional term debt is intended to provide
holders of promissory notes with assurance that if the assets of
the Company were sold they would not be prejudiced for having
accepted the proposal.

The Company is also examining the structuring of a further
$5 million convertible debenture and what the terms and conditions
of such additional financing would entail.


MARK IV: Slow Cash Flow Cues S&P to Lower Corp. Credit Rating to B
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Amherst, New York-based Mark IV Industries to 'B' from
'B+' and removed the rating from CreditWatch with negative
implications, where it was placed Aug. 21, 2006.

"The downgrade reflects the company's sluggish free cash flow
generation, caused by competitive pressures in the automotive
industry, which has impeded its ability to pay down debt," said
Standard & Poor's credit analyst Gregg Lemos Stein.

The outlook is stable.

Mark IV, a maker of automotive, industrial and electronic toll
collection equipment, has total debt of about $1.1 billion and
underfunded postretirement benefit liabilities of about $235
million.

Intense competition and pricing pressures in the automotive
industry have led to lower margins in many of Mark IV's segments.
These pressures may grow in the near term as several automakers
have sharply cut their North American production plans for the
fourth quarter of 2006, including a 21% decline by Ford Motor Co.
and a 13% reduction by General Motors Corp.

Ford and GM's North American operations together account for just
11% of revenues for Mark IV, which benefits from fair customer
diversity.  Still, any decline in sales to Ford and GM comes at an
inopportune time for Mark IV, which faces a total of $51 million
of mandatory pension plan contributions by the end of the current
fiscal year ending February 2007.

In the electronic toll equipment segment, which accounts for 22%
of Mark IV's EBITDA, results have been soft recently because of
postponed shipments to government agencies.  Although Mark IV
expects to record these sales, the timing may be pushed back
several quarters, further stretching Mark IV's financial profile.

In the heavy-duty truck segment, which provides 12% percent of
Mark IV's EBITDA, sales have been strong this year, but an
industry-wide downturn is expected in 2007 because of new EPA
emissions standards.

These business challenges notwithstanding, Mark IV's moderate
capital requirements and improved operational efficiencies should
enable the company to continue generate solid low- to mid-teens
percentage EBITDA margins over the economic cycle.


MCMS INC: Claims Objection Deadline Stretched to February 14
------------------------------------------------------------
The Honorable Brendan Linehan Shannon of the U.S. Bankruptcy Court
for the District of Delaware extended until Feb. 14, 2007, the
time within which Francis A. Monaco, Jr., the Chapter 11
Liquidating Trustee of MCMS, Inc., can object to claims.

The Liquidating Trustee requires additional time to complete his
review of those claims and all other proofs of claim filed in the
Debtors' cases to make sure they have been properly scheduled.

The Liquidating Trustee is in the process of resolving the
remaining preference actions filed in the Debtors' cases.  To the
extent settlements are reached and the parties agree to waive
their claims, additional objection will need to be filed in order
to formally expunge the disputed claims.

The extension will give the Liquidating Trustee sufficient time to
make informed decisions concerning the resolution of claims and to
communicate with the claimants.

Following the sale of its business and associated trade names and
trademarks, MCMS, Inc., changed its name to Custom Manufacturing
Services, Inc.  Debtor MCMS Customer Services, Inc., has also
changed its name to CMS Customer Services, Inc.  The Debtors filed
for chapter 11 protection on September 18, 2001 (Bankr. D. Del.
Case No. 01-10477) and converted these cases under Chapter 7
Liquidation of the Bankruptcy Code on May 13, 2002.  Eric D.
Schwartz, Esq., and Donna L. Harris, Esq., at Morris, Nichols,
Arsht & Tunnell represent the Debtors as they wind-up their
assets.  Francis A. Monaco, Jr., at Monzack & Monaco, P.A., and
Charles L. Glerum, Esq., at Choate, Hall & Stewart served the
Committee's counsel.  When the company filed for protection from
its creditors, it listed $173,406,000 in total assets and
$343,511,000 in total debt.

The Debtors' First Amended Consolidated Liquidating Plan of
Reorganization was confirmed on Dec. 3, 2003, an became effective
on Jan. 13, 2004.  Francis A. Monaco, Jr., was appointed as the
Chapter 11 Liquidating Trustee of the Debtors.  Kevin J. Mangan,
Esq., represents the Liquidating Trustee.


MEDICAL ASSOCIATES: Case Summary & 19 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Medical Associates of Pinellas, L.L.C.
        1064 Keene Road
        Dunedin, Florida 34698

Bankruptcy Case No.: 06-04800

Type of Business: The Debtor offers medical services.

Chapter 11 Petition Date: September 8, 2006

Court: Middle District of Florida (Tampa)

Debtor's Counsel: David S Jennis, Esq.
                  Jennis Bowen & Brundage, P.L.
                  400 North Ashley Drive, Suite 2540
                  Tampa, Florida 33602
                  Tel: (813) 229-1700
                  Fax: (813) 229-1707

Total Assets: $1,459,362

Total Debts:  $474,246

Debtor's 19 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Gary Greenspan, M.D.          Former partner             $51,829
601 Main Street               Claim related to
Dunedin, FL 34698             capital account

Leonard Dunn, M.D.            Former partner             $49,467
601 Main Street               Claim related to
Dunedin, FL 34698             capital account

Robert Stein, M.D.            Former partner             $47,728
1840 Mease Drive, Suite 400   Claim related to
Safety Harbor, FL 34695       capital account

Leslie Goodman, M.D.          Former partner             $40,535
1840 Mease Drive, Suite 400   Claim related to
Safety Harbor, FL 34695       capital account

Olympia Development Group     Rent on Office             $21,760

Beckman Coulter, Inc.         Lease on BCI               $21,260
                              Synchron LX 20
                              Chemistry System

BD Fairways, Ltd.             Office Lease               $13,127

Elais Kolettis, D.O.          Former partner             $12,577
                              Claim related to
                              capital account

Vincent Dilella, D.O.         Former partner             $11,718
                              Claim related to
                              capital account

Bobby Haley, D.O.             Former partner             $11,030
                              Claim related to
                              capital account

Cardinal Health               Supplies                    $9,869

Biomerieux, Inc.              Supplies                    $9,296

Lewis Birch & Ricardo, LLC    Accounting services         $8,960

Stevens & Stevens, Inc.       Storage                     $8,497

Pinellas County Tax Coll.     Personal Property           $8,095
                              Taxes due for 2006

Sanford Plevin, M.D.          Former partner              $7,797
                              Claim related to
                              capital account

Charles Nutinsky, D.O.        Former partner              $7,579
                              Claim related to
                              capital account

Larry Feinman, D.O.           Former partner              $6,762
                              Claim related to
                              capital account

Sunset Medical Clinic, Ltd.   Rent on Office              $6,279


MERIDIAN AUTOMOTIVE: IRS Opposes Third Amended Joint Plan
---------------------------------------------------------
The Internal Revenue Service asks the U.S. Bankruptcy Court for
the District of Delaware to deny Meridian Automotive Systems,
Inc., and its debtor-affiliates' Third Amended Joint Plan of
Reorganization.

The IRS complains that the Debtors' Third Plan provides for an
unreasonably short administrative bar date of 30 days after the
Effective Date of the Plan.

To the extent that the Debtors seek a prompt determination of
their tax liability, they should abide by Section 505(b) of the
Bankruptcy Code for a determination of their administrative tax
claims, Ellenn. W. Sights, Esq., in Wilmington, Delaware,
asserts.

The IRS opposes the Third Amended Plan to the extent that:

   a. it fails to preserve IRS' set-off and recoupment rights;
      and

   b. its discharge and release provisions exceed the scope of
      Section 1141(d) of the Bankruptcy Code.

Ms. Slights argues that discharge should apply to debts incurred
prior to the Confirmation Date rather than the Effective Date.

The IRS objects to the release from liability of non-Debtor third
parties and maintains that it will not grant the releases
described in the Plan.

The IRS has filed two unsecured claims against the Debtors.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other
interior systems to automobile and truck manufacturers.  Meridian
operates 22 plants in the United States, Canada and Mexico,
supplying Original Equipment Manufacturers and major Tier One
parts suppliers.  The Company and its debtor-affiliates filed for
chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos.
05-11168 through 05-11176).  James F. Conlan, Esq., Larry J.
Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at
Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon
L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks,
Esq., at Young Conaway Stargatt & Taylor, LLP, represent the
Debtors in their restructuring efforts.  Eric E. Sagerman, Esq.,
at Winston & Strawn LLP represents the Official Committee of
Unsecured Creditors.  The Committee also hired Ian Connor
Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A.,
to prosecute an adversary proceeding against Meridian's First Lien
Lenders and Second Lien Lenders to invalidate their liens.  When
the Debtors filed for protection from their creditors, they listed
$530 million in total assets and approximately $815 million in
total liabilities.  (Meridian Bankruptcy News, Issue No. 38;
Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/
or 215/945-7000).


MERIDIAN AUTOMOTIVE: Wants to Reject American Financial Lease
-------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates seek
permission from the U.S. Bankruptcy Court for the District of
Delaware to reject their executory equipment lease with American
Financial Leasing, Inc., effective as of Sept. 7, 2006.

The Debtors have discontinued operations at their Canton, Ohio
facility where the equipment subject to the Lease is utilized,
Ian S. Fredericks, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, informs the Court.  As a result, the
Lease provides the Debtors and their estates with little or no
benefit based on:

   -- the Debtors' need for the Equipment;

   -- the cost to fulfill the Debtors' obligations under the
      Lease; and

   -- costs to transport and store the Equipment.

The Lease's rejection will avoid additional administrative
expenses to the Debtors' estates, Mr. Fredericks asserts.
Moreover, the Lease holds no material economic value to the
Debtors' estates and is not essential to the conduct of the
bankruptcy cases.

Headquartered in Dearborn, Mich., Meridian Automotive Systems,
Inc. -- http://www.meridianautosystems.com/-- supplies
technologically advanced front and rear end modules, lighting,
exterior composites, console modules, instrument panels and other
interior systems to automobile and truck manufacturers.  Meridian
operates 22 plants in the United States, Canada and Mexico,
supplying Original Equipment Manufacturers and major Tier One
parts suppliers.  The Company and its debtor-affiliates filed for
chapter 11 protection on April 26, 2005 (Bankr. D. Del. Case Nos.
05-11168 through 05-11176).  James F. Conlan, Esq., Larry J.
Nyhan, Esq., Paul S. Caruso, Esq., and Bojan Guzina, Esq., at
Sidley Austin Brown & Wood LLP, and Robert S. Brady, Esq., Edmon
L. Morton, Esq., Edward J. Kosmowski, Esq., and Ian S. Fredericks,
Esq., at Young Conaway Stargatt & Taylor, LLP, represent the
Debtors in their restructuring efforts.  Eric E. Sagerman, Esq.,
at Winston & Strawn LLP represents the Official Committee of
Unsecured Creditors.  The Committee also hired Ian Connor
Bifferato, Esq., at Bifferato, Gentilotti, Biden & Balick, P.A.,
to prosecute an adversary proceeding against Meridian's First Lien
Lenders and Second Lien Lenders to invalidate their liens.  When
the Debtors filed for protection from their creditors, they listed
$530 million in total assets and approximately $815 million in
total liabilities.  (Meridian Bankruptcy News, Issue No. 38;
Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/
or 215/945-7000).


MONONGAHELA POWER: Moody's Concludes Review and Upgrades Ratings
----------------------------------------------------------------
Moody's Investors Service upgraded Monongahela Power Company's
long-term ratings by one notch, including the upgrade of its
senior unsecured debt to Baa3 from Ba1.  This concludes the review
for possible upgrade that was initiated on August 9, 2006.  The
rating outlook is stable.

The upgrade recognizes substantial improvements in MP's financial
position, and favorable regulatory signals with regard to its
large environmental capital spending program.  MP's stand-alone
financial ratios are consistent with a Baa rating, with funds from
operations covering interest about four times and FFO to debt
approaching 20%.

MP's ratings also consider the financial and operational
interrelationship of the Allegheny Energy, Inc. family of
companies.  Allegheny effectively manages all of its regulated
operating subsidiaries as a single system, including MP, and the
utility subsidiaries share their resources through a regulated
money pool borrowing arrangement.

The West Virginia Public Service Commission recently approved a
securitization to recover expected costs for construction of flue
gas desulfurization equipment to reduce sulfur dioxide emissions
at the company's Ft. Martin coal-fired power plant.  Last week,
the company announced that the estimated costs are now about
$160 million to $200 million higher than previously expected.  The
upgrade incorporates the belief that the project would be unlikely
to proceed without reasonable expectations for relatively timely
recovery of these environmental expenditures.  The West Virginia
PSC approved full recovery through a securitization covering the
previously estimated expenditure
of $338 million.

The outlook is stable, reflecting the expected low volatility of
the company's underlying utility operations and the expectation
that MP's improved financial profile will be maintained over the
next several years, and that there will be reasonably supportive
regulatory action to address recovery of increased costs and
outlays for environmental spending.

Monongahela Power, a subsidiary of Allegheny Energy, Inc., is an
integrated utility serving approximately 374,000 electric
customers in West Virginia.


MSO HOLDINGS: June 30 Balance Sheet Upside-Down by $10.9 Million
----------------------------------------------------------------
MSO Holdings, Inc., filed its second quarter financial statements
for the three months ended June 30, 2006, with the Securities and
Exchange Commission on Aug. 14, 2006.

The Company incurred a $467,399 net loss on $997,872 of net
revenues for the three months ended June 30, 2006, compared to a
$1,702,541 net loss on $1,995,255 of net revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $1,079,554 in
total assets and $11,979,555 in total liabilities, resulting in a
$10,900,001 stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $747,139 in total current assets available to pay $1,672,865
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?1162

                     Going Concern Doubt

As reported in the Troubled Company Reporter on June 28, 2006,
BDO Seidman, LLP, expressed substantial doubt about MSO Holdings'
ability to continue as a going concern after auditing the
Company's financial statements for the years ended December 31,
2005 and 2004.  The auditing firm pointed to the Company's
recurring losses and negative cash flows from operations.

                     About MSO Holdings

MSO Holdings, Inc. -- http://www.WeightLossSurgery.com/-- is an
Obesity Disease Management company with corporate, union, health
insurance plan and hospital clients.  MSO has a sophisticated non-
interventional weight-loss program with individualized behavioral
coaching by experienced psychotherapist coaches.  Also, MSO
surgery functions are conducted through its six CORI (Centers for
Obesity Related Illnesses) Centers in New York City, Brooklyn,
Queens, Long Island, Detroit and the Chicago area.  MSO contracts
with acute care hospitals to establish Bariatric Surgery Centers
of Excellence under the brand name CORI, while contracting with
corporations, unions and health insurance plans for Obesity
Disease Management for employees, members and the general public.
MSO has been awarded the Joint Commission on Accreditation of
Healthcare Organizations Disease-Specific Care Certification for
Bariatric Surgery.


NATIONAL CENTURY: CSFB Trust Sets Sept. 21 as Distribution Date
---------------------------------------------------------------
Avidity Partners, LLC, as trustee of the CSFB Claims Trust,
notifies beneficiaries that it will make a distribution
calculated pursuant to the provisions of the Trust Agreement.

Avidity has set:

    * September 8, 2006, as the record date; and
    * September 21, 2006, as the distribution date.

Inquiries concerning the distribution must be directed to:

    Jill DePietto,
    U.S. Bank, c/o ASG, 8475 Western Way, Suite 100
    Jacksonville FL 32256
    Phone: (904) 807-3057
    Fax: (904)807-3030

Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- through the CSFB
Claims Trust, the Litigation Trust, the VI/XII Collateral Trust,
and the Unencumbered Assets Trust, is in the midst of liquidating
estate assets.  The Company filed for Chapter 11 protection on
November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235).  The Court
confirmed the Debtors' Fourth Amended Plan of Liquidation on
April 16, 2004.  Paul E. Harner, Esq., at Jones Day, represents
the Debtors. (National Century Bankruptcy News, Issue No. 65;
Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/
or 215/945-7000)


NATIONAL CENTURY: Former VP Snoble Sentenced to 4-Yr. Imprisonment
------------------------------------------------------------------
John Allen Snoble, age 64, of Upper Arlington was sentenced in the
United States District Court to four years imprisonment for his
role in a conspiracy to launder the proceeds of securities fraud
while he held management positions with National Century Financial
Enterprises, Inc.

Snoble was also sentenced to make restitution to victims of his
crime.  Judge Graham indicated that he would set a separate
hearing to determine the amount and recipients of restitution.
Earlier proceedings have determined the total loss to be as much
as $2.9 billion between 1994 and 2002.

Gregory G. Lockhart, United States Attorney for the Southern
District of Ohio; Timothy P. Murphy, Special Agent in Charge,
Federal Bureau of Investigation, Cincinnati Field Division;
Cromwell A. Handy, Special Agent in Charge, Internal Revenue
Service Criminal Investigation; Gerald O'Farrell, Assistant
Inspector in Charge, U.S. Postal Inspection Service; and Merri Jo
Gillette, Regional Director, Midwest Regional Office, Securities
and Exchange Commission, announced the sentence handed down by
Senior United States District Judge James L. Graham.

"Judge Graham's sentence should serve as a message of deterrence
to others in positions of responsibility that such crimes will
result in lengthy terms of imprisonment," Lockhart said.

Snoble pled guilty in November 2004 to one count of conspiracy to
launder money.  Snoble held two management positions with NCFE,
beginning as Chief Financial Officer in 1993 and becoming Vice
President/Controller in 1999.  Snoble and others conspired to
defraud investors in health care receivable securitization notes
issued by NCFE subsidiaries known as NPF VI and NPF XII.  Snoble
and others are alleged to have regularly moved hundreds of
millions of dollars between and among bank accounts to hide the
company's shortages.  As part of his plea agreement, Snoble agreed
to assist the government in the investigation and prosecution of
others.

In May 2006, a federal grand jury returned a 60-count indictment
charging seven former executives with conspiracy, securities
fraud, wire fraud, mail fraud, and money laundering.  Their trial
is set to begin in September 2007.

Snoble is the third NCFE management figure to plead guilty in the
case.  Sherry L. Gibson, NCFE's former Executive Vice President
for Compliance, pled guilty to conspiracy to commit securities
fraud in August 2003.  She was sentenced to 48 months imprisonment
in June 2004 and ordered to liquidate all her assets for
restitution.  Brian J. Stucke, age 33, of London, Ohio, was
Director of Compliance for NCFE.  Stucke pled guilty in December
2003 to conspiracy to commit securities fraud and is awaiting
sentence.

The Dublin, Ohio-based Company bought medical accounts receivable
from health care providers around the country.  NCFE financed the
purchases by selling securities in the form of notes to large
institutional investors outside Ohio.  According to documents
provided to potential investors, NCFE was to use the money it
collected from the accounts receivable to repay investors.  In its
promotional materials, NCFE billed itself as the "nation's leading
supplier of working capital to the medical industry."

Lockhart commended the agents and analysts of the FBI, IRS, SEC,
and Postal Inspectors who continue to analyze and investigate the
information contained in thousands of boxes of documents and
computer files seized by the FBI with the assistance of the Dublin
Police Department and the Franklin County Sheriff's Office from
NCFE's Dublin offices in November 2002.  Lockhart also commended
the efforts of Assistant U.S. Attorney Dale E. Williams, Jr., U.S.
Department of Justice Trial Attorney Mark Yost, and other
attorneys in the U.S. Department of Justice Criminal Division who
are working on the investigation and related prosecutions.

Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- through the CSFB
Claims Trust, the Litigation Trust, the VI/XII Collateral Trust,
and the Unencumbered Assets Trust, is in the midst of liquidating
estate assets.  The Company filed for Chapter 11 protection on
November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235).  The Court
confirmed the Debtors' Fourth Amended Plan of Liquidation on
April 16, 2004.  Paul E. Harner, Esq., at Jones Day, represents
the Debtors. (National Century Bankruptcy News, Issue No. 66;
Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/
or 215/945-7000)


NEOPLAN USA: Wants Court to Set Oct. 23 General Claims Bar Date
---------------------------------------------------------------
Neoplan USA Corporation and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to set Oct. 23,
2006, as the deadline for all creditors owed money by the Debtors
on the account of claims arising prior to Aug. 17, 2006.  The
Debtors further ask the Court to set Feb. 13, 2007, as the
deadline for all governmental units owed money by the Debtors to
on the account of claims arising prior to the petition date.

The Debtors say that establishing bar dates will advance the goal
of determining the appropriate treatment of various creditor
constituencies on the extent of the claims asserted against them.
Further, the Debtors intend to sell their remaining assets
pursuant to a liquidating plan, which was filed on Aug. 24, 2006.

Copies of written proofs of claim must be sent or hand delivered
before 4 p.m. (EST) on Oct. 23, 2006 for general claims and before
4 p.m. (EST) on Feb. 13, 2007 for government units claims to:

     Delaware Claims Agency, LLC
     230 North Market Street, 2nd Floor
     P.O. Box 515
     Wilmington, DE 19801

Headquartered in Denver, Colorado, Neoplan USA manufactures
standard floor buses, low floor buses, and articulated buses.
Neoplan USA licenses its designs from the German corporation,
Neoplan.  Neoplan USA is entirely separate from Neoplan in
Germany.  The Company, its parent, IAP Acquisition Corporation,
and two affiliates, filed for chapter 11 protection on Aug. 17,
2006 (Bankr. D. Del. Lead Case No. 06-10872).  Tobey M. Daluz,
Esq., at Ballard Spahr Andrews & Ingersoll LLP, represents the
Debtors.  The Official Committee of Unsecured Creditors is
represented by David B Stratton, at Pepper Hamilton LLP.  When
Neoplan USA filed for protection from its creditors, it listed
$13,696,911 in total assets and $59,009,471 in total debts.


NORTH AMERICAN: Launches $60.4 Million Offering of 9% Senior Notes
------------------------------------------------------------------
North American Energy Partners Inc. commenced a cash tender offer
to purchase any and all of its $60,481,000 aggregate principal
amount outstanding of 9% Senior Secured Notes due 2010 (CUSIP No.
656844 AE 7).

In connection with the tender offer, the Company is soliciting
consents to, among other things, eliminate substantially all of
the restrictive covenants and certain events of default contained
in the indenture governing the notes.  The tender offer and the
consent solicitation are being made upon the terms and subject to
the conditions set forth in the offer to purchase and consent
solicitation statement and the related letter of transmittal, each
dated Sept. 8, 2006.

The tender offer is scheduled to expire at 5:00 p.m., New York
City time, on Oct. 6, 2006, unless extended.  The total
consideration for each $1,000 aggregate principal amount of notes
validly tendered and accepted for payment and for the related
consents, will be the sum of (x) 35% of the equity
claw-back price ($1,090 per $1,000 principal amount of notes
validly tendered) and (y) 65% of the fixed spread price.  However,
if the fixed spread price is less than the amount calculated
above, the total consideration for each $1,000 aggregate principal
amount of notes will be the fixed spread price.  The fixed spread
price is equal to the present value on the date of payment for the
notes of all future cash flows on the notes minus accrued and
unpaid interest to but not including, the payment date of June 1,
2008, the first date on which the notes are redeemable, based on
the yield on the 4% U.S. Treasury Note due May 31, 2008, plus 50
basis points.  The total consideration for notes tendered, and for
the related consents, if such notes are tendered on or prior to
the consent date of 5:00 p.m., New York City time, on Sept. 21,
2006, unless such date is extended, and such notes are accepted
for payment by the Company, includes a consent payment of $30 per
$1,000 aggregate principal amount of notes.  Holders, who tender
notes after the consent date, will not receive the consent
payment.  Holders, who tender notes that are accepted for payment
and purchased by the Company, also will be paid accrued and unpaid
interest up to but not including, the applicable payment date.
Tendered notes may not be withdrawn and consents may not be
revoked after the consent date.

The dealer manager and solicitation agent will determine the
actual pricing, based on the foregoing, on Sept. 22, 2006,
although this price determination date may be extended by the
Company.  The Company will publicly announce the pricing
information by issuing a news release prior to 9:00 a.m., New York
City time, on the day following the price determination date.

The Company expects to pay for any Notes purchased, pursuant to
the tender offer and consent solicitation, on a date promptly
following the expiration of the tender offer.  The Company may
accept and pay for any Notes at any time after the consent date,
in its sole discretion.

Holders may not tender notes without delivering consents and may
not deliver consents without tendering notes.  The obligation of
the Company to accept for payment and purchase the notes in the
tender offer and pay for the related consents, is conditioned on,
among other things, the Company's proposed amalgamation with its
parent corporations and the subsequent initial public offering of
common shares of the amalgamated company and the receipt of
consents to the proposed amendments from the holders of at least a
majority of the aggregate principal amount of outstanding notes,
each as described in more detail in the offer to purchase and
consent solicitation statement.

The Company has retained Credit Suisse Securities (USA) LLC to
serve as the dealer manager and solicitation agent for the tender
offer and the consent solicitation.  Questions regarding the
tender offer and the consent solicitation may be directed to:

     Credit Suisse Securities (USA) LLC
     Telephone (212) 538-0652 (collect)
     Toll Free (800) 820-1853

Requests for documents in connection with the tender offer and the
consent solicitation may be directed to the information agent for
the tender offer and the consent solicitation:

     D. F. King & Co., Inc.
     Telephone (800) 431-9633

                   About North American Energy

Headquartered in Edmonton, Alberta, North American Energy Partners
Inc. -- http://www.naepi.ca/-- provides mining and site
preparation, piling and pipeline installation services in western
Canada.  The Company specializes in providing services for the
Canadian oil sands.

                          *     *     *

As reported in the Troubled Company Reporter on July 31, 2006,
Standard & Poor's Ratings Services placed its 'B-' long-term
corporate credit, its 'B' senior secured debt, and its 'CCC'
senior unsecured debt ratings on North American Energy Partners
Inc. on CreditWatch with positive implications.


OPBIZ LLC: S&P Downgrades Ratings to CCC+ With Negative Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Las
Vegas-based casino owner OpBiz LLC to 'CCC+' from 'B-'.

In addition, the ratings remained on CreditWatch with negative
implications where they were placed on Aug. 18, 2006.

The downgrade reflects Standard & Poor's concerns about the
company's near-term liquidity position given:

   -- The company's failure to satisfy its minimum construction-
      spending requirement, which was $72 million at Aug. 31,
      2006, by $35.6 million, as outlined in its existing bank
      facility and the lack of resolution to this covenant breach
      to date;

   -- The continued weaker-than-expected operating performance at
      the property, which has resulted in the violation of minimum
      EBITDA covenant contained in the company's bank facility
      (while the company's owners have committed to injecting
      $5 million to cure this non-compliance, this remedy is not
      permitted in future periods if a subsequent violation
      occurs);

   -- The higher renovation project budget, $165 million, which
      will require additional funding, either through incremental
      financing and/or the owners; and

   -- The delayed construction timetable, with full completion now
      scheduled for the second quarter of 2007 (despite the
      interior work still scheduled to be completed by the end of
      2006.

As a result of the violation of the minimum construction spending
requirement covenant, the company may be required to make a
mandatory prepayment of amounts outstanding under the bank
facility for a renovation-spending shortfall.  The viability of
the renovation project is in question.

Standard & Poor's review of OpBiz's rating will concentrate on
lender negotiations and their impact on the company's near-term
liquidity position.  Prospects for a further downgrade are not
necessarily limited to one notch.


PERFECTING NEW: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Perfecting New Life Full Gospel Baptist Church
        1224 Franklin Street North
        Little Rock, Arkansas 72114

Bankruptcy Case No.: 06-13930

Type of Business: The Debtor operates a church.

Chapter 11 Petition Date: September 7, 2006

Court: Eastern District of Arkansas (Little Rock)

Judge: Richard D. Taylor

Debtor's Counsel: Frederick S. Wetzel, Esq.
                  Wetzel Law Firm
                  200 North State Street, Suite 200
                  Little Rock, Arkansas 72201
                  Tel: (501) 663-0535

Total Assets: $1,278,650

Total Debts:  $845,322

Debtor's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
GMAC                          2005 Cadillac              $56,330
P.O. Box 3100                 Escalade (39,458
Midland, TX 79702             miles)
                              Value of security:
                              $39,750

Pulaski Bank                  2005 Chevy Van-15          $23,172
5800 "R" Street               (24,236 miles)
Little Rock, AR 72207         Value of security:
                              $18,000

Visa Business                                             $9,253
P.O. Box 7500
Little Rock, AR 72217

AWI International                                         $7,781

Associated Plumbers                                       $5,879

North Little Rock Electric                                $5,317

Arlington Resort & Spa                                    $4,376

Dryades Savings Bank                                      $3,500

Great Central                                             $2,927

LaHarpe's Office Furniture                                $2,836

KARK                                                      $2,500

Airmasters                                                $2,042

Modern Image Systems                                      $1,679

Glenn Daniels Transmission                                $1,200

Williams AC Hearing                                       $1,188

GMAC Payment Processing                                   $1,085

ADT Security Services                                     $1,059

Visual Engineering                                          $950

Kone, Inc.                                                  $905

Brinks Home Security                                        $888


RENFRO CORP: Moody's Rates Proposed $145 Million Sr. Loan at B2
---------------------------------------------------------------
Moody's Investors Service assigned first time ratings of B2
to Renfro Corporation's corporate family and to its proposed
$145 million senior secured term loan facility.  The rating for
the proposed term loan reflects the overall probability of default
of the company, to which Moody's assigns a PDR of B3, and a loss
given default assessment of LGD3.  The ratings assigned are
subject to there being no material changes in the terms and
conditions of the transaction as advised to Moody's.

These ratings were assigned:

   * Corporate family rating at B2
   * $145 million senior secured term loan facility at B2
   * Probability of Default Rating at B3

Moody's B2 rating reflects Renfro's moderate scale in the apparel
industry, its sole focus on the sock sector, and the commoditized
nature of the segment.  Ratings are also constrained by limited
brand diversification, with the licensed Fruit of the Loom
brand accounting for the majority of sales, and high client
concentration, with the top three customers accounting for a
substantial majority of sales.  The rating reflects financial
leverage that is within the rating category and also takes into
account the company's leading market share and low cost
manufacturing platform.

The rating outlook is stable as Moody's expectations are for
relatively steady operating margins and slowly improving financial
metrics given the moderate level of free cash flow which is
appropriate for the rating category.  The rating and outlook also
incorporate flexibility for the company to utilize
a $35 million "accordion" feature of its term loan to pursue
potential bolt-on acquisitions which are expected to have
limited impact to credit metrics.

In view of the company's scale and limited diversification, there
is limited upward rating pressure at this time.  Ratings could be
lowered if the pace of acquisition activity exceeds Moody's
expectations, if integration issues arise in any acquisitions, or
the category experiences increased price competition resulting in
reduced operating margins.

The B2 rating of the term loan B facility reflects an LGD3 loss
given default assessment as this facility is secured by a first
lien on substantially all assets of the company, other than
accounts receivable and inventory, over which the term loan B will
have a second lien, junior to the $60 million secured revolving
credit facility.  Due to the priority position of the secured
revolving credit facility over the most liquid assets, the LGD
assessment reflects expectation of a less than full recovery in a
possible distressed scenario.  Activation of the $35 million
"accordion" feature of the term loan is not expected to have
material effect on the ratings or LGD assessment.

Based in Mount Airy, North Carolina and founded in 1921, Renfro
Corporation is the largest US-headquartered manufacturer and
distributor of socks with estimated revenue of approximately $300
million. The company primarily manufactures products under
licenses including "Fruit of the Loom".


RENFRO CORP: S&P Rates Proposed $145 Million Senior Loan at B
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Mount Airy, North Carolina-based sock
manufacturer Renfro Corporation.  The rating outlook is stable.

At the same time, Standard & Poor's assigned its loan and recovery
ratings to Renfro's proposed $145 million senior secured term loan
B ($110 million funded at close).  The loan was rated 'B' (at the
same level as the corporate credit rating on the company) with a
recovery rating of '4', indicating the expectation for marginal
(25%-50%) recovery of principal in the event of a payment default.

The ratings are based on preliminary offering statements and are
subject to review upon final documentation.  Proceeds from the
proposed bank loan, along with some borrowings from a proposed $60
million asset-based revolving credit facility (unrated), will be
used by financial sponsor Kelso & Company to finance the
acquisition of Renfro.

Standard & Poor's estimates that Renfro will have about $130
million in total debt outstanding upon the closing of the
transaction.  The company has up to $35 million available to draw
from the term loan over the next 18 months for corporate purposes.

"The rating on Renfro reflects the company's participation in the
highly competitive apparel manufacturing industry, its narrow
product portfolio, customer concentration, and highly leveraged
financial profile," said Standard & Poor's credit analyst Susan
Ding.  "These factors are somewhat mitigated by the well-known
Fruit of the Loom brand."

Although Renfro does not own the Fruit of the Loom brand, it does
have a long-term license to sell Fruit of the Loom socks until
2026.  Standard & Poor's assigns a high degree of business risk
to the apparel manufacturing industry because of intense
competitions, low barriers to entry, and the commodity-like nature
of certain apparel items, such as socks.

Renfro is a designer, manufacturer, and marketer of men's, women's
and children's socks, selling primarily to mass merchandisers.
Its major well-known licensed brand name is Fruit of the Loom,
which comprises a significant portion of revenues.  Seventy-five
percent of Renfro's sales are in the sport sock category.  The
sock manufacturing segment is somewhat fragmented with other major
brands that include Hanes and Gold Toe.


SAINT VINCENTS: Court Approves New York OAG Resolution Agreement
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved Saint Vincents Catholic Medical Centers of New York and
its debtor-affiliates' Resolution Agreement with the Office of the
Attorney General of the State of New York.

As reported in the Troubled Company Reporter on Aug. 25, 2006, the
OAG had received complaints concerning the provision of language
interpretation and translation services at St. Vincent's Hospital,
Staten Island.  Subsequently, the OAG began an investigation into
SVHSI's policies, procedures, and practices regarding language
assistance services.

To avoid the expense and inconvenience of further investigation or
litigation, and while denying any wrongdoing or liability in the
matter, Saint Vincent Catholic Medical Centers, doing business as
SVHSI, entered into a resolution agreement with the OAG.

The Resolution Agreement revises SVHSI's policies in a number of
ways, specifically, in the areas of:

    * Assessment of Interpreters and Language Banks;
    * Providing and Securing Language Assistance Services;
    * Monitoring;
    * Training; and
    * Appointment of a Language Assistance Coordinator.

Among other things, the Resolution Agreement provides that:

    (a) SVHSI will establish a written Language Bank identifying
        Hospital Employees who may interpret or translate Medical
        Information to LEP Patients -- patients whose primary
        language is not English and who cannot speak, read, write
        or understand English at a level sufficient to permit the
        patient to interact effectively with health care
        providers.

    (b) SVHSI will ensure that each shift includes a sufficient
        number of Qualified Interpreters.

    (c) SVHSI will continue to maintain a contract with a
        company qualified to provide telephonic interpretation
        services.

    (d) Hospital Employees will seek to provide face-to-face
        interpretation services where possible.

    (e) SVHSI will collect and report data over three Reporting
        Periods.

    (f) SVHSI will prepare Language Assistance Monitoring Reports.

    (g) The Language Assistance Monitoring Reports will be used to
        address service deficiencies and to help prepare a
        separate report summarizing internal needs and plans for
        future changes.  Both the Language Assistance Monitoring
        Report and the Internal Needs Assessment Report will be
        provided to the OAG.

    (h) SVHSI will take additional steps to measure the adequacy
        of its language assistance services, including: (1)
        patient satisfaction surveys; (2) provider satisfaction
        surveys; (3) spot checks of various departments to
        determine the extent to which Hospital Employees are
        complying with language assistance policies and
        procedures; and (4) telephone tests to assess the
        adequacy of staff responses to telephone inquiries from
        LEP persons.

    (i) SVHSI will develop a concise summary of procedures to
        follow when employees come into contact with LEP Patients,
        which will be subject to the approval of the OAG.  Once
        approved, the LEP Policy Summary will be distributed to
        all employees who come into contact with patients, and
        will be posted in specific locations.

    (j) SVHSI will appoint a specific individual or individuals
        responsible for implementing language assistance services
        and for ensuring compliance with the Agreement.

A full-text copy of the Resolution Agreement is available for
free at http://ResearchArchives.com/t/s?1066

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. 34 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SAINT VINCENTS: Inks Management Agreements with Wyckoff Heights
---------------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its
debtor-affiliates ask the U.S. Bankruptcy Court for the Southern
District of New York to approve two management agreements, by and
between Saint Vincent Catholic Medical Centers and Wyckoff Heights
Medical Center, for certain management services to be provided by
Wyckoff at Mary Immaculate Hospital, Queens, and St. John's Queens
Hospital.

Wyckoff is an affiliate of Caritas Health Care Planning, Inc.,
which has agreed to purchase the Debtors' Queens Hospitals
pursuant to an asset purchase agreement dated May 9, 2006, Andrew
M. Troop, Esq., at Weil, Gotshal & Manges LLP, in New York,
explains.

Although the Court has approved the Purchase Agreement, the
closing of the transaction still requires receipt of numerous
regulatory approvals, Mr. Troop relates.  The delayed closing of
the sale caused by the regulatory approval process will force the
Debtors and their estates to continue to fund the significant
operating losses generated by the Queens Hospitals for several
additional months.

Mr. Troop informs the Court that the Management Agreements will
reduce the operating losses generated by the Queens Hospitals
prior to the Closing Date, and will help assure that Mary
Immaculate and St. John's are transferred to Caritas on the
Closing Date with the least amount of disruption to the patients
and employees of the hospitals.

The two Management Agreements, which contain identical terms,
provide a framework under which Wyckoff will assume responsibility
for the daily management of the Queens Hospitals prior to the
Closing Date, under the oversight and control of SVCMC.

Each Management Agreement provides that:

    (1) Wyckoff:

        * will be responsible for the overall management and
          administration of the hospital;

        * will not, without SVCMC's prior approval, have
          management authority (i) with respect to the disposition
          of any asset involved in the operation of the hospital
          unless that asset will be transferred to Caritas on the
          Closing Date pursuant to the Purchase Agreement, or (ii)
          except as incidental to the daily management of the
          hospital, any operations of SVCMC relating to the
          hospital if after the Closing Date Caritas will not be
          responsible for the operations;

        * will comply with the policies of SVCMC requiring the
          approval of officers or directors for certain kinds of
          contracts, commitments, actions and decisions;

        * is authorized to delegate any of its duties to one or
          more third parties with applicable expertise; and

        * will appoint a chief administrative officer for the
          hospital, who will report directly to SVCMC's chief
          executive officer.

    (2) SVCMC will retain the ultimate authority and
        responsibility for its policies, management, and overall
        operations to the extent required by applicable law and
        accreditation standards of the Joint Commission on
        Accreditation of Healthcare Organizations.

    (3) The Board of Trustees of SVCMC will retain responsibility
        for:

        (a) the appointment and discharge of the hospital's
            senior executives;

        (b) control over the books and records of the hospital;

        (c) the disposition of assets used in the operation of the
            hospital and the incurring of liabilities in
            connection with the operation of the hospital that are
            not normally associated with the day-to-day operations
            in the ordinary course of business;

        (d) the adoption of all policies affecting the delivery of
            health care services; and

        (e) compliance of the hospital with all pertinent
            provisions of federal, state, and local statutes,
            rules and regulations.

    (4) SVCMC will retain authority with respect to any action
        regarding the operation of the hospital that is outside
        the ordinary course of business.

    (5) SVCMC will:

        -- pay to Wyckoff a monthly fee of $20,000;

        -- reimburse Wyckoff for its reasonable out-of-pocket
           expenses incurred in connection with the Management
           Agreement;

        -- reimburse Wyckoff for the costs of subcontractors and
           professionals it used in performing its duties under
           the Management Agreement, provided the costs have been
           approved in writing by SVCMC; and

        -- be responsible for all expenses related to the
           operation of the hospital.

The Management Agreement will take effect within five business
days after the later of the date on which the Management
Agreement is approved by (i) the Court and (ii) the Commissioner,
and will continue until the earliest to occur of:

    (a) the Closing Date;

    (b) the first anniversary of the effective date;

    (c) denial of Caritas' certificate of need and establishment
        applications for approval of Caritas' purchase of the
        Queens Hospitals and the exhaustion of any appeal of the
        denial; and

    (d) termination of the Management Agreement with respect to
        the other Queens Hospital.

The Management Agreement may be terminated, among others, without
cause by either party upon 90 days' written notice to the other
party, or by the breach of a material obligation by either party
that is not cured within 30 days' written notice.

SVCMC will indemnify Wyckoff to the same extent as the most
favorable indemnification SVCMC extends to its officers or
directors.  Under no circumstance will Wyckoff or any of its
personnel be liable for any indirect or consequential damages.

Wyckoff and SVCMC also agree to standard restrictions regarding
disclosure of confidential information.

Additionally, the Management Agreement does not require the
referral, admission, or any other arrangement for the provision
of any item or service offered to patients at the other party's
facilities.

A full-text copy of the Management Agreement for Mary Immaculate
is available for free at http://ResearchArchives.com/t/s?1173

A full-text copy of the Management Agreement for St. John's is
available for free at http://ResearchArchives.com/t/s?1174

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. 34 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SAINT VINCENTS: Court Approves Massey Knakal Sublease Pact
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved a sublease agreement between Saint Vincents Catholic
Medical Centers of New York and its debtor-affiliates and Massey
Knakal Realty for nonresidential real property located at 447 86th
Street, 2nd Floor in Brooklyn, New York.

As reported in the Troubled Company Reporter on Aug. 28, 2006, the
Debtors are selling a portion of the premises at which St. Mary's
Hospital in Brooklyn had been located that includes Shevlin Hall,
the current location of the administrative office of SVCMC's home
health care agency.

In light of the asset disposition, the Debtors must relocate
various continuing services that will continue to operate after
the sale closes, including the Home Care Office.

After arm's-length negotiations, the Debtors reached an agreement
in principle for the Sublease with Massey Knakal, as the Sub-
Landlord, and HSBC Bank USA, the over-landlord for the Premises,
pursuant to which:

    * the Debtors will sublease approximately 4,000 square feet of
      office space for a 17-month term with a three-month early
      termination clause and an option to renew for an additional
      five-year period;

    * rent will be $97,900 per year or about $8,150 per month plus
      utilities and real estate taxes; and

    * no security deposit is required for the first 17-month term
      of the Sublease.

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. 34 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SANTA FE: Court Gives Nod on Stevens & Lee as Bankruptcy Counsel
----------------------------------------------------------------
Santa Fe Mineral, Inc., and its sole shareholder and debtor-
affiliate, 15375 Memorial Corporation, obtained authority from the
U.S. Bankruptcy Court for the District of Delaware to employ
Stevens & Lee, P.C., as their bankruptcy counsel.

Stevens & Lee is expected to:

    (a) advise management concerning their fiduciary obligations
        to the estate, the creditors and the Court;

    (b) assist regarding the administration of the Debtors'
        chapter 11 cases, including prosecutions of motions and
        adversary proceedings, defense of actions commenced
        against the Debtor, commencement and prosecution of
        objections to claims, representation in the claims
        reconciliation process and counseling regarding the
        preparation of schedules, statements and operating
        reports;

    (c) assist in the formulation, negotiation and confirmation of
        a chapter 11 plan or reorganization and related disclosure
        statement; and

    (d) render other legal services as may be requested by
        management and required in furtherance of the Debtors'
        chapter 11 cases.

John D. Demmy, Esq., a shareholder at Stevens & Lee, tells the
Court that attorneys at the firm bill between $280 to $365 per
hour while paralegals bill between $140 to $190 per hour.

Mr. Demmy assures the Court that his firm does not hold or
represent any interest adverse to the Debtors or their estates.

Mr. Demmy can be reached at:

         John D. Demmy, Esq.
         Stevens & Lee, P.C.
         1105 North Market Street, 7th Floor
         Wilmington, Delaware 19801
         Tel: (302) 654-5180
         Fax: (302) 654-5181
         http://www.stevenslee.com/

                        About Santa Fe Minerals

Headquartered in Houston, Texas, 15375 Memorial Corporation is the
sole shareholder of Santa Fe Mineral, Inc.  Santa Fe Minerals is a
Wyoming based corporation dissolved in 2000.  Under Wyoming law,
creditors of a dissolved corporation can recover their debts from
the dissolved corporation's shareholders, up to the value of the
assets that each shareholder received at the dissolution.

15375 Memorial and Santa Fe Minerals filed for chapter 11
protection on Aug. 16, 2006 (Bankr. D. Del. Case No. 06-10859 &
06-10860).  When the Debtors filed for protection from their
creditors, they estimated their assets between $100,000 to
$500,000 and liabilities of more than $100 million.


SANTA FE: List of Eight Largest Unsecured Creditors
---------------------------------------------------
Santa Fe Mineral, Inc., and its sole shareholder, 15375 Memorial
Corporation, released a list of their eight Largest Unsecured
Creditors with the U.S. Bankruptcy Court for the District of
Delaware, disclosing:

    Entity                                          Claim Amount
    ------                                          ------------
    William Tebow                                   $300,000,000

    Donald T. Carmouche, Esq.
    Talbot, Carmouche & Marcello
    214 West Cornerview
    P.O. Box 759
    Gonzales, LA 70707-0759

    Jerold E. Knoll, Esq.
    The Knoll Law Firm, LLC
    233 South Main Street
    P.O. Box 426
    Marksville, LA 71351-0425

    Nancy Mikelli Carruth                           $300,000,000

    Donald T. Carmouche, Esq.
    Talbot, Carmouche & Marcello
    214 West Cornerview
    P.O. Box 759
    Gonzales, LA 70707-0759

    Jerold E. Knoll, Esq.
    The Knoll Law Firm, LLC
    233 South Main Street
    P.O. Box 426
    Marksville, LA 71351-0425

    Donna Tebow                                     $300,000,000

    Donald T. Carmouche, Esq.
    Talbot, Carmouche & Marcello
    214 West Cornerview
    P.O. Box 759
    Gonzales, LA 70707-0759

    Jerold E. Knoll, Esq.
    The Knoll Law Firm, LLC
    233 South Main Street
    P.O. Box 426
    Marksville, LA 71351-0425

    Jackie Eugene Ellison                            $10,000,000
    aka Gene Ellison

    Richard M. Healy, Esq.
    720 Northeast 63rd
    Oklahoma City, OK 73105

    Jackie Eugene Ellison, Trustee                   $10,000,000

    Richard M. Healy, Esq.
    720 Northeast 63rd
    Oklahoma City, OK 73105

    Marcia Ellison                                   $10,000,000

    Richard M. Healy, Esq.
    720 Northeast 63rd
    Oklahoma City, OK 73105

    Reginald Harris                                      Unknown

    Gregory Stamos, Esq.
    Rose Klein Marias, LLP
    401 East Ocean Boulevard, Suite 300
    Long Beach, CA 90601

    Wyomania Harris                                      Unknown

    Gregory Stamos, Esq.
    Rose Klein Marias, LLP
    401 East Ocean Boulevard, Suite 300
    Long Beach, CA 90601

The Debtors further disclose that the persons listed are
plaintiffs in lawsuits that have asserted claims against Santa Fe
Minerals.  The Debtors relate that other defendants in those
lawsuits may assert claims against the Debtors but have not yet
done so, as such, have not been included in the list.

The Debtors tell the Court that if a demand has not been made,
formally or informally, the amount of the claim was labeled as
"unknown."

                      Environmental Lawsuit

As reported in the Troubled Company Reporter on Aug. 21, 2006,
Santa Fe Minerals was placed in bankruptcy by its parent,
GlobalSantaFe Corp., in an attempt to hold off a $300 million
environmental lawsuit.  The three Louisiana landowners who filed
the suit are alleging that around 95 wells drilled by Santa Fe and
another defendant damaged their property.

                      About Santa Fe Minerals

Headquartered in Houston, Texas, 15375 Memorial Corporation is the
sole shareholder of Santa Fe Mineral, Inc.  Santa Fe Minerals is a
Wyoming based corporation dissolved in 2000.  Under Wyoming law,
creditors of a dissolved corporation can recover their debts from
the dissolved corporation's shareholders, up to the value of the
assets that each shareholder received at the dissolution.

15375 Memorial and Santa Fe Minerals filed for chapter 11
protection on Aug. 16, 2006 (Bankr. D. Del. Case No. 06-10859 &
06-10860).  When the Debtors filed for protection from their
creditors, they estimated their assets between $100,000 to
$500,000 and liabilities of more than $100 million.


SATELITES MEXICANOS: Files Amended Plan and Disclosure Statement
----------------------------------------------------------------
Satelites Mexicanos, S.A. de C.V., delivered its First Amended
Plan of Reorganization and accompanying Disclosure Statement to
the U.S. Bankruptcy Court for the Southern District of New York on
Sept. 8, 2006.

                     Creation of Equity Trust

Prior to the Effective Date, the Debtor will form an Equity Trust,
instead of special purpose entities, to settle the Debtor's
obligations under the Amended Plan.

On the Effective Date, New Common Stock representing 90% of the
equity voting rights and 96% of the equity financial rights in the
Reorganized Debtor will be held by an Equity Trust Trustee for the
benefit of the holders of Allowed Existing Bond Claims, Allowed
Existing Preferred Stock Interests, and Allowed Existing Common
Stock Interests, other than the Mexican Government.

The Equity Trust Trustee will deposit global trust certificates
representing beneficial ownership of New Common Stock
corresponding to 43% of the voting rights and 78% of the financial
rights in the Reorganized Debtor with the Depository Trust
Company, Euroclear Bank S.A./N.V., or Clearstream Banking societe
anonyme.  Interests in the Global Trust Certificate will be
received by the holders of Existing Bond Claims on a pro rata
basis in exchange for a portion of the Existing Bond Claims.

           Recovery for Servicios & Mexican Government

Servicios Corporativos Satelitales, S.A. de C.V., will receive
beneficial interests in the Equity Trust corresponding to New
Series A Common Stock representing 45% of the equity voting rights
and 16% of the equity financial rights in the Reorganized Debtor,
on a fully diluted basis.

The Mexican Government will receive New Series A Common Stock and
New Series N Common Stock representing 10% of the equity voting
rights and 4% of the equity financial rights in the Reorganized
Debtor subject to the same terms and conditions as the New Common
Stock held by the Equity Trust Trustee, on a fully diluted basis.

Servicios is restructuring its debt obligations.  The Debtor
relates that the Mexican Government, as creditor of Servicios,
will ultimately receive the economic benefits of the beneficial
interests in the Debtor distributed to Servicios under the Plan in
full satisfaction of Servicios' obligation to the Mexican
Government arising from a promissory note referred to as the
Menoscabo.

As previously reported, Servicios owed the Mexican Government
approximately $125.1 million plus interest in connection with
Servicios' purchase of a stake in the Debtor.

Servicios holds 70.71% equity stake and 100% voting interest in
the Debtor as of the date of filing for chapter 11 protection.
The Mexican Government holds 23.57% equity stake and limited
voting rights for extraordinary matters.

               Recovery of Claims in Classes 2 & 6

For purposes of voting to accept or reject the Amended Plan, the
Class 2 Senior Secured Note Claims are allowed for $203,388,000,
in the aggregate.  For purposes of distribution, the Class 2
Senior Secured Note Claims are allowed for $203,388,000 plus
unpaid accrued interest through the Effective Date, with interest
calculated so that, assuming an Effective Date of Sept. 30, 2006,
the Allowed amount will be $234,400,000.

With respect to Classes 6A and 6B Existing Preferred Stock
Interests, the Plan provides that:

   (i) Principia S.A. de C.V., will receive beneficial interests
       in the Equity Trust corresponding to New Series B Common
       Stock and New Series N Common Stock, which will represent
       0.67% of the total equity financial rights and 0.67% of
       the total equity voting rights of the Reorganized Debtor on
       a fully diluted basis; and

  (ii) Loral Skynet Corporation and Loral SatMex, Ltd., will
       receive beneficial interests in the Equity Trust
       corresponding to New Series B Common Stock and New
       Series N Common Stock, which will represent 1.33% of the
       total equity financial rights and 1.33% of the total
       equity voting rights of the Reorganized Debtor on a fully
       diluted basis.

                    Issuance of Secured Notes

On the Plan Effective Date, the Reorganized Debtor will issue
$203,388,000 in First Priority Senior Secured Notes.  The First
Priority Notes will mature five years after the Effective Date and
incur interest at one-month or three-month LIBOR plus 875 basis
points per annum (LIBOR+8.75%), payable in arrears in Cash on the
last day of the applicable one-month or three-month period.

The Reorganized Debtor will issue $140,000,000 in Second Priority
Senior Secured Notes, which will mature seven years after the
Effective Date.  The Second Priority Notes will incur interest
payable quarterly in arrears at 10.125% per annum.  Interest will
be payable in Cash, provided that until the earlier of (a) the
fifth anniversary of the Effective Date, and (b) the date the
First Priority Notes are paid in full, the interest will be
payable in kind.

             Satmex to Pay Other Parties' Legal Fees

The Amended Plan provides that the Debtor will be entitled to and
will pay the reasonable fees and expenses of professionals
retained by:

   * the Ad Hoc Senior Secured Noteholders' Committee;

   * the Ad Hoc Existing Bondholders' Committee;

   * Thomas Heather, the conciliador in the Concurso Proceeding
     in Mexico;

   * Loral; and

   * Servicios.

               Appointment of Common Representative

Pursuant to the Amended Plan, a common representative will be
irrevocably appointed under Mexican law to act for the benefit of
the holders of the Second Priority Notes solely for the purposes
of:

   (i) voting in favor of or accepting a plan of reorganization
       in any future concurso mercantil proceeding;

  (ii) exercising all veto rights in connection with the approval
       of a concurso plan in Mexico, but only in the event that
       the plan is accepted by holders of a majority of the
       aggregate outstanding principal amount of the Second
       Priority Notes; and

(iii) releasing certain liens.

                        Other Disclosures

The Debtor disclosed that it has recently been granted an
extension of the Orbital Concessions to Oct. 22, 2037, without the
payment of any additional consideration to the Mexican
Government.  As previously reported, the Mexican Government has
granted the Debtor three Orbital Concessions that allow it to
operate satellites in Mexico's orbital slots.  The Orbital
Concessions may be further extended subject to certain conditions.

The Debtor also reported that the order approving its convenio
concursal terminated the Concurso proceeding in Mexico, and became
final, binding and non-appealable on Aug. 1, 2006.

In addition, the Bankruptcy Court closed the Debtor's Section 304
Proceeding on Aug. 11, 2006.  The Bankruptcy Court also authorized
the Debtor to assume its settlement agreements with certain Loral
entities.

             Plan Has Support of Major Constituents

The Debtor relates that its Chapter 11 Plan has the support of:

   -- Servicios, Loral and Principia;

   -- the beneficial holders of more than 67% of the
      10-1/8% Unsecured Senior Notes due Nov. 1, 2004; and

   -- the beneficial holders of more than 67% of the Senior
      Secured Floating Rate Notes due June 30, 2004.

A blacklined copy of the Debtor's First Amended Plan is available
at no charge at http://ResearchArchives.com/t/s?1178

A blacklined copy of the Debtor's First Amended Disclosure
Statement is available at no charge at:

             http://ResearchArchives.com/t/s?1179

                   About Satelites Mexicanos

Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico.  Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds.  Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.

The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee.  As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.

On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103).  (Satmex Bankruptcy News,
Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


SEDGWICK CMS: To Purchase All of Security Capital's Common Stock
----------------------------------------------------------------
Sedgwick CMS Holdings, Inc. will acquire all of the outstanding
shares of Security Capital Common Stock and Class A Common Stock.
More than 95% of the Company's outstanding shares were voted in
favor of the adoption of the merger agreement.

Commenting on the approval of the merger by Security Capital's
stockholders, Brian D. Fitzgerald, Chairman, President and CEO of
the Company, stated: "The merger represents the culmination of our
previously announced formal sale process of the Company.  The
Company's Board of Directors believes that the formal sale process
has resulted in the Company's stockholders receiving the highest
price reasonably obtainable for their shares."

Upon the completion of the merger, Security Capital stockholders
will be entitled to receive $16.46 in cash per share of Security
Capital Common Stock and Class A Common Stock.  The merger is
expected to close shortly.

As soon as reasonably practicable after the merger closes, a
paying agent designated by Sedgwick CMS will mail a form of letter
of transmittal and instructions to all of Security Capital's
stockholders of record. The form of letter of transmittal and
instructions will tell such stockholders how
to surrender their stock certificates in exchange for the
$16.46 per share consideration, without interest.

                        About Segwick CMS

Sedgwick CMS Holdings, Inc. is the holding company for Sedgwick
Claims Management Services, Inc.  Sedgwick is headquartered in
Memphis, Tennessee, and is a market leader in insurance claims
management services.  For 2005, the company reported total revenue
of $398 million.


SEDGWICK CMS: S&P Assigns B+ Loan Rating to $510 Million Debts
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' senior
secured bank loan rating to Sedgwick CMS Holdings Inc.'s
(Sedgwick; B+/Positive/--) $450 million term loan B due 2013
and a $60 million revolving credit facility due 2012.

"The ratings reflect the company's relatively low interest
coverage and above-average leverage.  These metrics contribute to
Sedgwick's weak financial flexibility," noted Standard & Poor's
credit analyst James Brender.

Offsetting the company's weaknesses is the:

   * good competitive position as the leading domestic third-party
     administrator of self-insured claims management systems;

   * very stable operating performance; and

   * extremely strong customer retention.

"The positive outlook reflects Sedgwick's improving competitive
position, good operating performance, and stable cash flows,"
Mr. Brender added.

Standard & Poor's expects Sedgwick will solidify its position as
the market leader within its sector.  Management will accomplish
this by cross selling to existing customers, attracting new
customers and acquiring companies that will either broaden
Sedgwick's product line or increase its market share.

Sedgwick will also establish new sources of revenue from business
process outsourcing and international expansion.  Customer
retention should not decrease to less than 96%.  Operating
performance will continue to feature both high single-digit top-
line growth (after adjusting for acquisitions completed in 2006)
and low to mid double-digit EBITDA margin.  The only significant
dark cloud is the possibility of off-shoring.

Standard & Poor's would consider raising Sedgwick's bank loan
ratings one notch to 'BB-' if the firm executes its business plan
including the integration of two recently acquired entities.
Alternatively, Standard & Poor's might revise the outlook back to
stable if operating performance suffers from the acquisition,
though this seems unlikely.


SERACARE LIFE: Board Appoints CEO Susan Vogt as Director
--------------------------------------------------------
The Board of Directors of SeraCare Life Sciences, Inc., appointed
Susan Vogt, president and chief executive officer, to fill a
vacancy on the Board.

The Company disclosed that it did not enter into a further
employment agreement with Ms. Vogt aside from the agreement dated
July 14, 2006.  Ms. Vogt was not named to any committee of the
Board.

The employment agreement provides for an initial three-year term
expiring on Aug. 25, 2009.  The term will be automatically
extended for an additional one-year period on the expiry date and
each subsequent anniversary of the expiry date.  The employment
agreement also provides for, among other things, an annual base
salary of $350,000 and an annual incentive bonus opportunity based
on the achievement of certain performance objectives to be
established by the Board of Directors or the Compensation
Committee.  Pursuant to the Employment Agreement, Ms. Vogt's
target incentive bonus amount will be not less than 75% of her
base salary.  The Company will also reimburse Ms. Vogt up to
$175,000 for costs and expenses associated with relocating to the
area in which the Company's principal offices are located.

In addition the Company also granted Ms. Vogt a nonqualified stock
option to purchase 450,000 shares of the Company's common stock.
The option vests in annual installments over a three-year period
following the date of grant, has a term of 10 years, and has an
exercise price of $6 per share.

Based in Oceanside, California, SeraCare Life Sciences, Inc.,
-- http://www.seracare.com/-- develops and manufactures
biological based materials and services for diagnostic tests,
commercial bioproduction of therapeutic drugs, and medical
research.  The Company filed for chapter 11 protection on March
22, 2006 (Bankr. S.D. Calif. Case No. 06-00510).  The Official
Committee of Unsecured Creditors selected Henry C. Kevane, Esq.,
and Maxim B. Litvak, Esq., at Pachulski Stang Ziehl Young Jones &
Weintraub LLP, as its counsel.  When the Debtor filed for
protection from its creditors, it listed $119.2 million in assets
and $33.5 million in debts.


SERACARE LIFE: Taps Prolman Group to Provide Financial Services
---------------------------------------------------------------
SeraCare Life Sciences, Inc., asks the U.S. Bankruptcy Court for
the Southern District of California to employ Prolman Group, Inc.,
dba Prolman Associates to provide financial services for a
specific purpose.

The Debtor tells the Court that it lacks the internal resources
necessary to compile and analyze financial information required to
support its efforts to secure new financing needed to exit
bankruptcy.

The Debtor wants Prolman Group's services to prepare a financing
package that contains an overview of the Debtor's business and
assets, including accounts receivable, inventory and equipment
that may be used to collateralize a loan, which package may be
presented to potential lenders for the purposes of soliciting
financing proposals.

The firm's professionals bill:

        Professional                Hourly Rate
        ------------                -----------
        David A. Prolman               $350
        Bette Hiramatsu                $295

Mr. Prolman, President of Prolman Group, discloses that the firm
has agreed to cap its fees at $94,000, plus out-of-pocket
expenses.

Mr. Prolman assures the Court that the firm does not hold any
interest materially adverse to the Debtor or its estate.

Based in Oceanside, California, SeraCare Life Sciences, Inc. --
http://www.seracare.com/-- develops and manufactures biological
based materials and services for diagnostic tests, commercial
bioproduction of therapeutic drugs, and medical research.  The
Company filed for chapter 11 protection on March 22, 2006
(Bankr. S.D. Calif. Case No. 06-00510).  Garrick A. Hollander,
Esq., Paul J. Couchot, Esq., and Peter W. Lianides, Esq.,
represent the Debtor.  The Official Committee of Unsecured
Creditors selected Henry C. Kevane, Esq., and Maxim B. Litvak,
Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, as its
counsel.  When the Debtor filed for protection from its creditors,
it listed $119.2 million in assets and $33.5 million in debts.


SERACARE LIFE: Taps AccuVal Associates as Inventory Appraiser
-------------------------------------------------------------
SeraCare Life Sciences, Inc., asks the U.S. Bankruptcy Court for
the Southern District of California to employ AccuVal Associates,
Inc., as its inventory appraiser.

The Debtor wants AccuVal Associates to advise and assist the
Debtor in the allocation of the acquisition purchase price paid
for the assets of Celliance Milford, for financial reporting
purposes.

Richard E. Schmitt, President and CEO of AccuVal Associates,
discloses that the firm has agreed to perform services for a
$20,000 flat fee plus out-of-pocket expenses that will not exceed
to $4,500.

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

Based in Oceanside, California, SeraCare Life Sciences, Inc. --
http://www.seracare.com/-- develops and manufactures biological
based materials and services for diagnostic tests, commercial
bioproduction of therapeutic drugs, and medical research.  The
Company filed for chapter 11 protection on March 22, 2006
(Bankr. S.D. Calif. Case No. 06-00510).  Garrick A. Hollander,
Esq., Paul J. Couchot, Esq., and Peter W. Lianides, Esq.,
represent the Debtor.  The Official Committee of Unsecured
Creditors selected Henry C. Kevane, Esq., and Maxim B. Litvak,
Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, as its
counsel.  When the Debtor filed for protection from its creditors,
it listed $119.2 million in assets and $33.5 million in debts.


SHERIDAN HOLDINGS: Proposed Funding Cues Moody's to Lower Ratings
-----------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Sheridan Holdings, Inc. and Sheridan Healthcare, Inc., as co-
borrowers to B2 from B1 following the announcement of a proposed
refinancing.

Moody's also assigned a B2 rating to the company's proposed first
lien credit facilities, consisting of a $50 million revolver, a
$273 million term loan and a Caa1 rating to a proposed $135
million second lien term loan.  The proceeds of the proposed
facilities are expected to be used to refinance existing debt,
fund two acquisitions and pay a $146 million dividend to
shareholders.  The outlook for the ratings is stable.

The lowering of the Corporate Family Rating reflects Moody's
belief that pro forma for the acquisitions and increased debt
load, the company will have financial metrics that are more
appropriate for the B2 rating category.  Additionally, the B2
Corporate Family Rating reflects the conversion to debt of a
significant amount of equity resulting from the payment of a debt
financed dividend.

Moody's estimates consolidated pro forma adjusted debt to adjusted
EBITDA for the twelve months ended June 30, 2006 would have been
approximately 6.9 times.  Pro forma cash flow coverage of debt
also decreased to a level appropriate for the B2 rating category
as a result of the increased debt load. Moody's estimates that pro
forma adjusted operating and free cash flow coverage of adjusted
debt would have been approximately 5% and 4%, respectively,
excluding the dividend to shareholders, for the twelve months
ended June 30, 2006.  The company's relative size and revenue
concentration also continue to constrain the ratings. Pro forma
for the two planned acquisitions, the company would have
recognized revenue of approximately $436 million for the twelve
months ended June 30, 2006.

Also considered in the ratings is Sheridan's ability to maintain
margins and cash flow in the face of rising labor cost trends,
risks associated with the ability of the company to continue to
recruit new physicians in light of the decreasing supply of new
anesthesiologists and continued exposure to medical malpractice
claims and changes in physician reimbursement.

The ratings also incorporate Sheridan's leading position as a
provider of anesthesia and neonatology staffing services and the
leverage that position provides in negotiating reimbursement with
managed care payors.  The company has experienced steady growth
through the addition of new contracts, expansion of services, and
acquisitions, which has mitigated some risks associated with the
concentration of revenue.  Moody's also notes that the company has
a history of steady debt repayment over time and expects the
company will use available free cash flow to decrease financial
leverage.  Additionally, margins remain healthy even though they
are expected to continue to be under pressure from an increase in
the number of lower margin contracts based on hospital subsidies.

The stable ratings outlook reflects the expectation of favorable
operating performance of the company following the two planned
acquisitions.

Downgrades:

Issuer: Sheridan Holdings, Inc.

   * Corporate Family Rating, Downgraded to B2 from B1

Assignments:

Issuer: Sheridan Healthcare, Inc.

   * Senior Secured Bank Credit Facility, Assigned B2
   * Senior Secured Bank Credit Facility, Assigned Caa1

Withdrawals:

Issuer: Sheridan Healthcare, Inc.

   * Senior Secured Bank Credit Facility, Withdrawn, previously
     rated B1

Issuer: Sheridan Holdings, Inc.

   * Senior Secured Bank Credit Facility, Withdrawn, previously
     rated B1

Headquartered in Sunrise, Florida, Sheridan Healthcare is a
leading provider of physician services to hospitals and ambulatory
surgical facilities that desire to outsource the physician
staffing for the anesthesia, neonatology and emergency
departments.  Sheridan also provides a full compliment of
professional and administrative support services including
physician billing.


SIERRA PACIFIC: Improved Performance Cues Moody's to Lift Rating
----------------------------------------------------------------
Moody's Investors Service upgraded the Corporate Family Rating
of Sierra Pacific Resources to Ba2 from Ba3.  All of the other
ratings of SRP's B1 senior unsecured and its utility subsidiaries,
which include Nevada Power Company's Ba1 senior secured and Sierra
Pacific Power Company's Ba1 senior secured are unchanged.  The
rating outlook continues to be stable for SRP and its
subsidiaries.

The rating action reflects the improved financial performance of
SRP and expectations for relatively supportive rate treatment by
the Public Utility Commission of Nevada for deferred energy costs
and recent investments in utility infrastructure, including
significant additions to owned generation capacity.  The company
issued approximately $280 million of common equity in August
to support this capital spending.  The upgrade of the CFR also
reflects the rising proportion of total debt that is represented
by secured debt at the subsidiary operating company level.

The company has reduced its funded debt and lowered its interest
expense by refinancing.  In addition, the Nevada Supreme Court
recently provided a favorable ruling in an appeal of the PUCN's
decision from NPC's 2001 deferred energy rate case.  The outcome
of the Supreme Court's ruling remands the case back to the PUCN to
determine the appropriate rate schedule for recovery of
$180 million of purchased fuel and power costs previously
disallowed.

As a result, NPC intends to reverse charges previously taken to
account for the disallowance.  SRP is considering the sale of its
50% investment in Tuscarora Gas Transmission Company, which, if
successful, would provide additional funds to support future
utility capital expenditures.

SRP's financial performance has improved over the past
three years. However, over the next few years, rising capital
expenditures and regulatory lag are expected to constrain the
company's financial profile.  NPC and SPPC will need to fund
sizable capital spending for additions to generating and
transmission capacity to meet continued strong growth in
electricity demand in Nevada.

Sierra Pacific Resources is a holding company whose principal
subsidiaries, Nevada Power Company and Sierra Pacific Power
Company, are electric and electric and gas utilities,
respectively.  Sierra Pacific Resources also holds relatively
modest non-utility investments through other subsidiaries.
Sierra Pacific Resources' headquarters are in Las Vegas, Nevada.


SILICON GRAPHICS: Objects to LG Electronics' Claims
---------------------------------------------------
In August 2006, LG Electronics, Inc., filed Claim No. 623 against
Silicon Graphics, Inc., for unsubstantiated and unliquidated
damages, for not less than $75,000,000.

LGE also filed Claim Nos. 619, 620, 621, 622, 624, 625, 626, 627,
628, 629, 630, 631 and 632 against each of the other Debtors.
Each proof of claim asserts an unsubstantiated, unsecured, non-
priority, contingent, and unliquidated claim relating to the
Debtors' alleged infringement of patents owned by LGE.

Adam P. Strochak, Esq., at Weil, Gotshal & Manges LLP, in New
York, argues that LGE's claims must be disallowed in their
entirety because:

    -- LGE has failed to demonstrate even a cursory understanding
       of the Debtors' products and has made no effort to clarify
       or particularize its allegations;

    -- the Patents and each related claim is invalid as they fail
       to comply with the provisions of the patent laws, including
       Sections 102, 103, and 112 of Title 35 of the United States
       Code, which statutes govern the conditions for
       Patentability;

    -- the Claims are barred under the doctrines of prosecution
       history estoppel, laches, and equitable estoppel;

    -- LGE is estopped from claiming that the Patents cover or
       include any product or service that the Debtors
       manufacture, sell, or provide; and

    -- the Claims have been exhausted, and LGE has granted to the
       Debtors an implied license to practice the invention.

Mr. Strochak further notes that 12 of the 14 Debtors in the
Chapter 11 cases cannot, under U.S. patent law, be liable for
infringement of the Patents, because they:

    (a) are inactive corporations or holding companies;

    (b) do not make, use, offer to sell, sell, or import into the
        United States any "patented invention;" and

    (c) are not party to or liable in connection with Silicon's
        contracts with customers and vendors.

Mr. Strochak notes that only SGI and Silicon Graphics Federal,
Inc., either make, use, offer to sell, or sell SGI's products in
the U.S. and, thus, are the only entities that could bear any
liability in connection with the products and services.

Hence, the Debtors also ask the U.S. Bankruptcy Court for the
Southern District of New York to immediately expunge the LGE
Claims asserted against the Non-Operational Debtors.

The Debtors reserve their rights to assert additional defenses, if
necessary or appropriate, at a later date.

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.  The Debtors' exclusive plan-filing
period will expire on Dec. 29, 2006, and its exclusive
solicitation period will expire on Feb. 28, 2007.  (Silicon
Graphics Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SILICON GRAPHICS: Asks Court to Disallow Various Claims
-------------------------------------------------------
Shai Y. Waisman, Esq., at Weil, Gotshal & Manges LLP, in New York,
relates that as of Aug. 25, 2006, 700 proofs of claim were filed
against Silicon Graphics, Inc., and its debtor-affiliates' estate.

The Debtors ask the U.S. Bankruptcy Court for the Southern
District of New York to disallow 124 claims in their entirety,
specifically:

    * 28 duplicative claims filed against the same Debtor for the
      same dollar amount and in respect of the same obligation.
      The Duplicate Claims include:

       Claimant                    Claim No.       Claim Amount
       --------                    ---------       ------------
       EBM-PAPST, Inc.                   226           $694,820
       Electronic Data Systems           534            941,732
       Gyrogroup                         286            727,418
       LC Capital Master Fund, Ltd.      453         32,805,526
       McLaughlin, Kevin                 362            136,523
       PICTET & CIE                      297            107,380
       Pinnacle Data Systems, Inc.       597            624,169
       Sales Analytics, Inc.             450            163,000

    * nine claims that are no longer valid claims as the holder of
      each claim has filed a subsequent proof of claim which was
      intended to amend and supersede the previously filed claim.
      The Amended and Superseded Claims are:

       Claimant                    Claim No.       Claim Amount
       --------                    ---------       ------------
       Accurate Components Sales         389           $117,328
       Commonwealth of Massachusetts      39              4,000
       EMC2-Corporation                  376          1,120,927
       IDC Research, Inc.                  2            157,167
       Itanium Solutions Alliance         32            121,560
       MSA Systems, Inc.                  28            159,201
       Spherion Corp.                     68             92,328
       SPL Integrated Solutions           49            740,690
       University of Wisconsin            73            121,000

    * 19 claims for which none of the Debtors have any record of
      liability, which includes:

       Claimant                    Claim No.       Claim Amount
       --------                    ---------       ------------
       BT Americas                        92           $482,399
       Computer Sciences Corp.           438            178,973
       LC Capital Master Fund            461         32,805,526
       Levitt, Martin                    677        200,001,869
       Oracle USA, Inc.                  383            302,087
       Royal Indemnity Company            96            169,997
       Stratfor                          417            100,000

    * 44 claims that Silicon Graphics, Inc., may be liable for,
      but none of the other Debtor entities against which the
      claims were filed have any liability.  The Debtors want the
      Court to expunge and disallow the 44 claims as against each
      Debtor entity other than Silicon Graphics, Inc.  The claims
      include:

       Claimant                    Claim No.       Claim Amount
       --------                    ---------       ------------
       Bank of America Leasing           587         $1,884,809
       Celestica Corporation             640          1,364,033
       Fleet Business Credot, LLC        591          4,661,487
       J.P. Morgan Chase Bank, N.A.      539         57,713,001
       QLOGIC Corporation                482            293,635

    * 24 claims that do not represent valid claims against the
      Debtors.  The Equity-Based Claims include:

       Claimant                    Claim No.       Claim Amount
       --------                    ---------       ------------
       HSBC Private Bank (Suisse)        604            $10,220
       Mallon, Margaret                  666             24,000
       PICTET & CIE                      298             43,200
       Schwind, Alan                     424             19,098
       Taylor, Mark                      110             17,689

In addition, the Debtors ask the Court to reduce two claims
asserting amounts in excess of the actual amounts due and owing.
The Reduced Claims are:

                                             Original  Reduced
    Claimant                     Claim No.   Amount    Amount
    --------                     ---------   --------  --------
    Extron Electronics                141      $6,803      $563

    Transitive Corporation and        205     967,799   797,772
    Transitive Corporation, Ltd.

In the event that any of the claims objected to are not disallowed
or reduced on the grounds asserted, the Debtors reserve the right
to object to any claim on any other basis.

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.  The Debtors' exclusive plan-filing
period will expire on Dec. 29, 2006, and its exclusive
solicitation period will expire on Feb. 28, 2007.  (Silicon
Graphics Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SIMMONS CO: Moody's Hold Ratings and Revises Outlook to Positive
----------------------------------------------------------------
Moody's Investors Service affirmed Simmons' ratings and
revised the ratings outlook to positive from stable based on
the company's recent and expected continued improved operating
performance and improved financial flexibility.  Moody's also
assigned a B2 rating to the company's new senior secured credit
facility.

These ratings were affirmed by this action:

   * Corporate family rating, at B2;
   * $165 million secured discount notes due 2014 at Caa2;
   * $200 million senior subordinated notes due 2014 of Caa1.

These ratings were assigned by this action:

   * $75 million senior secured term loan B due 2011 of B2;
   * $492 million senior term loan D due 2011 of B2.

These ratings were withdrawn by this action:

   * $75 million senior secured term loan B due 2011 of B2;
   * $405 million senior term loan B due 2011 of B2;
   * $140 million senior unsecured floating rate loan due 2012 of
     B3

The change in ratings outlook to positive reflects Moody's belief
that the company is in a better position to weather the current
uncertainty in consumer spending because of its improved free cash
flow and operating margins following its recent operational
improvements in streamlining its manufacturing facilities and
its marketing and distribution functions; the operational
improvements are also a result of the company's enhanced
remerchandising efforts to align its products at key retail
price points.

The positive outlook also reflects Moody's expectation that the
industry's strong growth dynamics will materially continue over
the next 12 to 18 months, despite the uncertainty in consumer
spending, and that Simmons will generate sufficient cash flow
to allow for continued to de-leveraging based on its strong
operating and competitive position.  Moody's expects management to
sustain its strategic direction, which is centered on premium
pricing, new products and distribution channels, cost and asset
efficiency measures, and debt reduction.

The ratings affirmation also reflects Simmons's history of product
innovation and strong market share offset by relatively high, yet
moderating leverage.

Headquartered in Atlanta, Georgia, Simmons Company is one of the
largest manufacturers of premium mattresses, foundations and
related accessories.  The company has the second largest market
share, behind Sealy, in the U.S. mattress industry.Net sales for
the LTM ended June 2006 approximated $900 million.


SOLUTIA INC: Equity Panel Wants Debtors' Intervention Role Limited
------------------------------------------------------------------
While the Official Committee of Equity Security Holders appointed
in the bankruptcy cases of Solutia Inc. and its debtor-affiliates
recognizes that the Debtors may have a right to intervene in the
Adversary Proceeding, the Committee asks the U.S. Bankruptcy Court
for the Southern District of New York to limit the Debtors' role
just as it did when the Ad Hoc Solutia Trade Claims Committee, the
Ad Hoc Committee of Solutia Noteholders and the Official Committee
of Unsecured Creditors of Solutia were permitted to intervene in
the Adversary Proceeding.

The Debtors have been involved in the adversary proceeding
commenced by the Equity Committee against Pharmacia Corporation
and Monsanto Company from its inception and have been served with
all of the pleadings and present at all of the hearings, Karen B.
Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York,
notes.

The Debtors' intervention should not be a mechanism for
circumventing the Court's other determinations and allow the
Debtors to usurp the Equity Committee's authority and ability to
prosecute or settle the causes of action in its Complaint,
Ms. Dine asserts.

Moreover, Ms. Dine contends, the Debtors' intervention should not
become a vehicle that permits them to reargue issues such as
standing, as the issues have previously been decided by the
Court, nor should they offer the Debtors the opportunity to
control the timing of the litigation.

The Equity Committee wants to ensure that the Debtors will only
be allowed to attend depositions and Court proceedings on the
condition that they be granted a restricted right to question
witnesses on the issues presented in the Complaint.

Additionally, due to the short time remaining before trial begins
in the Adversary Proceeding and the advanced state of discovery,
the Equity Committee asks the Court not to permit the Debtors to
serve their own discovery requests or notice their own
depositions.

Like the other parties who have intervened, the Debtors should be
treated a general parties by the Court and should not be
permitted to act in any way that would delay the progress of the
Adversary Proceeding, Ms. Dine says.

While the Equity Committee has determined not to formally object
to the Debtors' Intervention Motion, the Committee continues to
be concerned about the role the Debtors will play in the
Adversary Proceeding.  Thus, the Equity Committee reserves all
its rights with respect to filing an objection.

           Equity Committee Identifies Rebuttal Experts

The Equity Committee informs the Court that it has designated two
rebuttal expert witnesses in the Adversary Proceeding:

   (1) Dr. Patrick C. Lucia will rebut the Defendants' expert,
       Dr. Robert H. Harris, concerning environmental remediation
       cost issues; and

   (2) Walter P. Schuetze will rebut the Defendants' expert,
       Dr. William W. Holder, concerning Federal Accounting
       Standards Board Statement No. 5 disclosure issues.

Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949).  When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts.  Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 68; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SOLUTIA INC: Court Okays Payment of $5 Mil. Settlement Installment
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorizes Solutia Inc. and its debtor-affiliates to pay the third
installment of $5 million under the Side Agreement and the
Litigation Settlement Agreements among the Debtors, Monsanto
Company, and Pharmacia Corporation.

Solutia sought the Court's authority to pay the third settlement
installment because:

   -- it will help preserve its ability to argue that Monsanto's
      release of the Anniston Indemnity Claim, a claim for
      $550,000,000, under the Side Agreement remains in effect;

   -- it is contemplated by the Debtors' business plan;

   -- it is permitted by the Debtors' postpetition financing
      agreement; and

   -- it is consistent with the First and Second Installment
      Payment Orders.

According to Solutia, one could interpret the Side Agreement as
an executory contract that it could assume or reject during the
Chapter 11 cases.  But this interpretation may be subject to
dispute and would require an analysis of whether assumption of
the Side Agreement is warranted.  Even if the agreement were
deemed to be subject to rejection, Solutia notes that a rejection
could trigger damage claims far exceeding the cost of the
proposed payment.  Thus, Solutia has decided not to bring these
issues before the Court at this time.

As previously reported, Solutia entered into the Global
Settlement Agreements with Monsanto and Pharmacia to resolve
certain lawsuits pending against them.  The Litigation Settlement
Agreements require an aggregate of $5,000,000 to be paid annually
from Aug. 26, 2004, to Aug. 26, 2013.

Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949).  When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts.  Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 68; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SPANISH BROADCASTING: Increasing Leverage Cues S&P's Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
the 'B' corporate credit rating, on Spanish Broadcasting System
Inc. on CreditWatch with negative implications.

The Miami, Florida-based radio broadcaster had approximately $337
million in debt at June 30, 2006.

"The CreditWatch listing reflects our concern over the company's
increasing leverage and limited discretionary cash flow," said
Standard & Poor's credit analyst Heather M. Goodchild.

In resolving the CreditWatch listing, Standard & Poor's will
assess the company's intermediate-term business strategies and the
appropriateness of its debt reduction plan.  Standard & Poor's
believes the rating downside is limited to one notch.


STAR TELECOMMS: D&O Litigation Settled for $2 Million
-----------------------------------------------------
The Continuing Creditors' Committee of the Star Creditors'
Liquidating Trust has settled its lawsuit against Star
Telecommunications, Inc.'s former directors and officers.  Subject
to Bankruptcy Court approval of the compromise and settlement, the
Committee has agreed to dismiss its lawsuit and exchange mutual
releases in consideration of a $2 million cash payment to the
Trust by former Chairman and CEO Brett S. Messing.

Gordon Hutchings, Jr., the Trust's liquidating trustee advised the
Bankruptcy Court in June that parties to the lawsuit (Dist. Del.
Civil Action No. 03-278-KAJ), had reached an agreement in
principle, subject to documentation, settling the D&O Action.  The
terms of the settlement weren't disclosed at that time.

The Committee charged the former directors and officers with
breach of their fiduciary duties of loyalty, good faith, and care,
and that the acts or omissions constituted gross negligence,
mismanagement, and corporate waste.  The Committee further alleged
that payments made by Star Telecommunications to Mr. Messing
constituted unjust enrichment.  Mr. Messing denied all of the
Committee's allegations and asserted affirmative defenses in an
Answer filed on Feb. 14, 2005.

To date, the Liquidating Trustee, pursuant to the terms of the
Chapter 11 Plan confirmed in the Debtors' cases, has made two
distributions to creditors and has resolved all other actions to
recover additional assets.

Headquartered in Santa Barbara, California, Star
Telecommunications, Inc., was a leading provider of global
telecommunications services to consumers, long distance carriers,
multinational corporations and Internet service.  The Company and
its debtor-affiliates filed for chapter 11 protection on March 13,
2001 (Bankr. D. Del. Case No. 01-00830).  Daniel A. Lowenthal,
III, Esq., at Thelen Reid & Priest LLP represented the Debtors and
represents the Continuing Creditors' Committee.  When the Debtors
filed for chapter 11 protection, they listed total assets of
$630,065,000 and total debts of $284,634,000.  The Court confirmed
the Debtors and Unsecured Creditors Committee's chapter 11 Plan on
July 31, 2002, and the Plan took effect on Aug. 13, 2002.  Gordon
Hutchins, Jr. is the Liquidating Trustee for the confirmed Plan.
Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young,
Jones & Weintraub P.C. represents the Liquidating Trustee.


STATEWIDE REALTY: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Statewide Realty, LLC
        Post Office Box 1506
        McComb, Mississippi 39649

Bankruptcy Case No.: 06-01861

Chapter 11 Petition Date: September 8, 2006

Court: Southern District of Mississippi (Jackson)

Debtor's Counsel: Craig M. Geno, Esq.
                  Harris Jernigan & Geno, PLLC
                  587 Highland Colony Parkway
                  P.O. Box 3380
                  Ridgeland, Mississippi 39157
                  Tel: (601) 427-0048
                  Fax: (601) 427-0050

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.


STONEVILLE PROPERTIES: Case Summary & Two Largest Creditors
-----------------------------------------------------------
Debtor: Stoneville Properties, LLC
        343 Maplewood Drive
        Eden, North Carolina 27288

Bankruptcy Case No.: 06-11025

Chapter 11 Petition Date: September 5, 2006

Court: Middle District of North Carolina (Greensboro)

Judge: William L. Stocks

Debtor's Counsel: Gene B. Tarr, Esq.
                  Blanco Tackabery Combs & Matamoros, P.A.
                  Suite 500 110 South Stratford Road
                  P.O. Drawer 25008
                  Winston-Salem, North Carolina 27114-5008
                  Tel: (336) 761-1250

Total Assets: $1,600,152

Total Debts:  $881,952

Debtor's 2 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
   Mary S. Barrow             Loan to LLC                $20,000
   343 Maplewood Drive
   Eden, NC 27288

   Ken Frazier                Commissions                $20,000
   Mossdale Drive
   Stoneville, NC 27048


STRATUS SERVICES: June 30 Stockholders' Deficit Narrows to $8 Mil.
------------------------------------------------------------------
Stratus Services Group Inc. filed its financial statements for the
second quarter ended June 30, 2006, with the Securities and
Exchange Commission.

At June 30, 2006, the Company's balance sheet showed $2,547,610 in
total assets and $10,632,766 in total liabilities, resulting in an
$8,085,156 stockholders' equity.  At Sept. 30, 2005, the Company
had a $9,875,971 deficit.

Revenues increased 8.6% to $1,282,074 for the three months ended
June 30, 2006, from $1,180,222 for the three months ended June 30,
2005.  This increase was primarily a result of an increase in
billable hours.

The Company reported net income of $8,987 on $1,282,074 of
revenues for the second quarter of 2006 compared with net income
of $2,080,797 on $1,180,222 of revenues for the same period in
2005.

Gross profit increased 9.1% to $371,498 for the three months ended
June 30, 2006 from $340,665 for the three months ended June 30,
2005, primarily as a result of increased revenues. Gross profit as
a percentage of revenues increased slightly to 29.0% for the three
months ended June 30, 2006 from 28.9% for the three months ended
June 30, 2005.

                            Liquidity

At June 30, 2006, the Company had limited liquid resources.
Current liabilities were $9,642,322 and current assets were
$2,375,351.  The difference of $7,266,971 is a working capital
deficit, which is primarily the result of losses incurred during
the last four years. These factors, among others, indicate that
the Company may be unable to continue as a going concern.

Management recognizes that the Company's continuation as a going
concern is dependent upon its ability to generate sufficient cash
flow to allow it to satisfy its obligations on a timely basis, to
fund the operation and capital needs, and to obtain additional
financing.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?1170

                        Going Concern Doubt

E. Randall Gruber, CPA, PC, expressed substantial doubt about
Stratus Services' ability to continue as a going concern after it
audited the Company's financial statements for the year ended
Sept. 30, 2005.  The auditing firm pointed to the Company's
recurring losses from operations and working capital deficit.

                   About Stratus Services Group

Headquartered in Manalapan, New Jersey, Stratus Services Group
Inc. (OTCBB: SSVG.OB) -- http://www.stratusservices.com/--  
provided a wide range of staffing and productivity consulting
services nationally through a network of offices located
throughout the United States until December 2005.  The Company
plan on expanding its information technology staffing solutions
businessthrough its 50% owned consolidated joint venture, Stratus
Technology Services, LLC.


THOMAS EQUIPMENT: Unit Completes $15 Mil. Funding with Greystone
----------------------------------------------------------------
Pneutech Inc., a wholly owned subsidiary of Thomas Equipment Inc.,
has successfully refinanced its existing credit facility with a
larger $15 million credit facility provided by Greystone Business
Credit II, LLC.

"We are pleased to work with JP and his team at Thomas," said Drew
Neidorf, President of Greystone Business Credit II, LLC.

On September 6, 2006, Pneutech Inc., and its wholly-owned
subsidiaries Rousseau Controls Inc. and Hydramen Fluid Power
Limited, initiated a court-supervised restructuring to facilitate
a refinancing of its credit facilities with the Royal Bank of
Canada. Pneutech obtained an order under the Canadian Companies'
Creditors Arrangement Act in a hearing before the Quebec Superior
Court of Justice, which maintains jurisdiction over Pneutech.

"We are excited by our partnership with Pneutech and feel
confident we can support its financing needs as it executes on its
opportunities," stated Joel Flig, Executive Vice President of
Greystone Business Credit II, LLC.

Pursuant to the Order, Pneutech received authorization to enter
into a debtor in possession financing arrangement with Greystone
to immediately replace Royal Bank of Canada as Pneutech's
principal lender.

"We are extremely disappointed with the Royal Bank of Canada and
are currently assessing all legal claims related to their conduct
from the original expiration of the credit facility through the
date of refinancing with Greystone on September 8th, 2006," stated
David Marks, Chairman of Thomas Equipment, Inc.  "We were
delighted to close this financing with Greystone so we can rapidly
proceed through our corporate restructuring."

The new credit facilities provide Pneutech with increased
financing to fund ongoing operations while Pneutech implements its
restructuring and will continue after Pneutech emerges from these
proceedings.

The credit facility with Greystone includes a revolving line of
credit in the maximum amount of $15,000,000, which also includes
term loans of up to $1,158,000.  The loans bear interest at a rate
of 3%, plus the prime interest rate. The facility will expire in 3
years, subject to earlier termination under certain circumstances.
As additional consideration for the facility, Thomas Equipment,
Inc. will issue a warrant to Greystone to purchase 1,000,000
shares of common stock at a price of $0.5 per share.

                      About Thomas Equipment

Headquartered in Milwaukee, Wisconsin, Thomas Equipment, Inc. --
http://www.thomas-equipment.com/-- is a technologically advanced
global manufacturer of a full line of skid steer and mini skid
steer loaders as well as attachments, mobile screening plants and
six models of mini excavators.  The Company distributes its
products through a worldwide network of distributors and
wholesalers.  In addition, the Company's wholly owned subsidiaries
manufacture specialty industrial and construction products, a
complete line of potato harvesting and handling equipment, fluid
power components, pneumatic and hydraulic systems, spiral wound
metal gaskets, and packing material.

At March 31, 2006, Thomas Equipment Inc.'s balance sheet showed a
stockholders' deficit of $31,289,000, compared to a $67,129,000
deficit at June 30, 2005.


TIME WARNER: Moody's Rates Proposed $700 Million Sr. Loan at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned a Ba2 rating to the proposed
$100 million senior secured first lien revolving credit facility
and to the $600 million senior secured first lien term loan at
Time Warner Telecom Holdings, Inc., a wholly owned subsidiary of
Time Warner Telecom Inc.

The proposed term loan will fund the cash portion of TWT's
acquisition of Xspedius Communications, and will refinance
$440 million of existing debt.  The ratings for the facilities
reflect both the overall probability of default of the company, to
which Moody's assigns a PDR of B2, and a loss given default
assessment of LGD 2.  Moody's also assigned LGD 4 to the 9.25%
senior notes at TWTH and LGD 5 to the convertible notes at TWT.
Moody's affirmed the B2 corporate family rating and upgraded the
company's liquidity rating to SGL-1 from SGL-2.

Moody's took these rating actions:

At Time Warner Telecom, Inc.:

   * Speculative grade liquidity rating -- Upgraded to SGL-1
     from SGL-2

   * Corporate family rating -- Affirmed B2

   * Probability of Default Rating -- Assigned B2

   * Convertible senior notes due 2026 -- Affirmed Caa1 and
     Assigned LGD 5 -- 89%

At Time Warner Telecom Holdings Inc.:

   * Sr. Secured Revolver due 2011 -- Assigned Ba2 and
     LGD 2 -- 20%

   * Sr. Secured Term Loan B due 2013 -- Assigned Ba2 and
     LGD 2 -- 20%

   * r. Secured Revolver due 2009 -- Affirmed B1 to be withdrawn

   * Sr. Secured Term Loan B due 2010 -- Affirmed B1 to be
     withdrawn

   * Second Priority Senior Secured Floating Rate Notes due
     2011 -- Affirmed B2 to be withdrawn

Senior Notes due 2014 -- Affirmed B3 and Assigned LGD 4 -- 64%

The rating outlook remains stable.

Pro-forma the financing, the company's leverage at year-end 2006
is expected to modestly increase to 4.9x from about 4.5x at June
30, 2006.  Operationally, the addition of Xspedius' fiber assets
will provide a growth platform for TWT to serve an additional 31
markets and to expand its facilities in 13 existing markets.  The
rating is tempered by the complexity of integrating Xspedius, the
planned integration costs, including higher capital expenditures
related to Xspedius.  As a result, sustained free cash flow
generation is not expected before 2007.

The stable rating outlook considers the company's growth plans and
the reasonable likelihood of achieving merger synergies.

The Ba2 rating of the first lien senior secured credit facilities
reflects an LGD 2 loss given default assessment as this facility
is secured by a pledge of all of the company's assets, while the
9.25% senior notes at TWTH and the convertible debentures at TWT
provide junior debt cushion of over 51% of total obligations.  As
a result, the 9.25% senior notes are B3, with an LGD4 loss given
default assessment, and the convertible debentures are Caa1, with
an LGD5.

Time Warner Telecom Inc., headquartered in Littleton, Colorado,
provides data, dedicated Internet access, and local and long
distance voice services to business customers in 44 metropolitan
markets in the United States.


TRIPATH TECH: Agrees to Settle Litigation with Langley Partners
---------------------------------------------------------------
Tripath Technology Inc. entered into a Stipulation and Agreement
of Settlement to settle the litigation entitled Langley Partners,
L.P. against Tripathi Technology, Inc., Adya Tripath and David
Eichler, pending against the Company and certain of its current
and former officers and directors.

The Stipulation and Agreement became final and binding upon the
parties only after the U.S. District Court for the Northern
District of California entered an order approving it.  The Court
entered the order on September 8, 2006.

"This settlement puts the Langley Partners litigation behind
Tripath," said Dr. Adya Tripathi, Tripath's President & CEO and
Chairman of the Board.

Under the terms of the Stipulation and Agreement, Langley Partners
L.P. is providing a general release to the Company, Dr. Adya
Tripathi and David Eichler for any and all claims that have been
or could have been made by Langley Partners against the Company,
Dr. Adya Tripathi and David Eichler, in return for which, the
Company is agreeing (i) to pay to Langley $40,000 and (ii) to
issue and deliver to Langley the amount of Company common stock
that corresponds to three hundred fifty-seven thousand seven
hundred and fifty dollars based on the closing bid price of
Company common stock on the first trading day immediately prior
to the date the Company transfers such stock in accordance with
the Court's order, provided that in no event will the Company
issue or deliver to Langley more than 9.99% of the amount of the
Company's common stock that is outstanding at the time the stock
to Langley is issued and delivered.

                           About Tripath

Headquartered in San Jose, California, Tripath Technology Inc. --
http://www.tripath.com/-- is a fabless semiconductor company
which provides power amplification to the Flat Panel Television,
Home Theater, Automotive Audio and Consumer and PC Convergence
markets.  Tripath owns the patented technology called Digital
Power Processing.  Tripath markets audio amplifiers with DPP(R)
under the brand name Class-T(R).  Tripath's current customers
include Alcatel, Alpine, Hitachi, JVC, Samsung, Sanyo, Sharp, Sony
and Toshiba.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on Dec. 15, 2005,
Stonefield Josephson, Inc., expressed substantial doubt about
Tripath Technology Inc.'s ability to continue as a going concern
after it audited the Company's financial statements for the year
ended Sept. 30, 2005 and 2004.  The auditing firm pointed to the
Company's recurring operating losses and accumulated deficit.


TURNSTONE SYSTEMS: June 30 Net Liquidation Assets Increased $87K
----------------------------------------------------------------
At June 30, 2006, Turnstone Systems Inc. reported $1,071,000 of
net assets in liquidation, an increase of $87,000, from the
$984,000 net assets in liquidation in the same period last year.

The $1,071,000 net assets in liquidation as of June 30, 2006
consists of $1,132,000 in cash and cash equivalents, partially
offset by $61,000 of estimated costs to be incurred during
liquidation.

During the six months ended June 30, 2006, the Company's net
assets in liquidation increased $33,000 due to $51,000 received
from bankruptcy proceedings of two former customers, partially
offset by an increase of $18,000 in estimated costs to be incurred
during liquidation.

The Company expects to use its capital resources to execute its
complete plan of liquidation and dissolution, settle existing
claims, including existing litigation and other current
liabilities and accrued expenses, and to make liquidating
distributions to stockholders.

Eric S. Yeaman, the Company's chief executive officer and chief
financial officer, said in an Aug. 14, 2006 regulatory filing with
the Securities and Exchange Commission, that the Company's capital
resources available for liquidating distributions to stockholders
may vary if the Company incurs greater than estimated operating
expenses associated with executing the plan of complete
liquidation and dissolution, actual settlement costs for existing
claims vary from estimates, or if there are existing, but unknown
claims made against the Company in the future.

The Company's cash and cash equivalents at June 30, 2006 were held
primarily in money market funds.  The Company expects to continue
to hold its cash and cash equivalents primarily in money market
funds while it executes the plan of dissolution.

A full-text copy of the Company's financial report for the three
months and six months ended June 30, 2006 is available for free
at: http://researcharchives.com/t/s?1167

                    Liquidation & Dissolution

On Aug. 6, 2003, the Company's Board of Directors approved,
subject to the approval by stockholders, a plan to liquidate and
dissolve the Company.

The Plan was approved by a majority of the Company's stockholders
on Nov. 11, 2003.  The key features of the Plan are:

   (1) file a Certificate of Dissolution with the Secretary of
       State of the State of Delaware;

   (2) cease conducting normal business operations, except as may
       be required to wind up the Company's business affairs;

   (3) attempt to convert all of the Company's remaining assets
       into cash or cash equivalents in an orderly fashion;

   (4) pay or attempt to adequately provide for the payment of all
       of the Company's known obligations and liabilities; and

   (5) distribute pro rata in one or more liquidating
       distributions all of the Company's remaining assets to its
       stockholders as of the applicable record date.

Headquartered in Livermore, California, Turnstone Systems Inc.
formerly developed and marketed products for the local exchange
carriers in deploying and maintaining copper local loop services.
The Company commenced the commercial sale of its products in the
first quarter of 1999.


UNITED SUBCON: Moody's Junks Rating on $200 Million Term Loan
-------------------------------------------------------------
Moody's Investors Service rated United Subcontractor's new credit
facility B2 and affirmed the company's Corporate Family Rating at
B2.  Moody's also rated the company's second lien term loan Caa1
in conjunction with a $125 million dividend recapitalization.

The B2 Corporate Family rating affirmation and stable outlook
balance the expectation that the company's financial metrics
are expected to deteriorate given the $125 million dividend
distribution and the weakened outlook for new homebuilding
construction against the cushion in the current rating given
the many financial metrics that are strong for the B2 rating
category.  The rating also benefits from the company's variable
cost structure as this suggests that the company should be able to
cut costs as business slows.

These ratings were assigned:

   * $300 million first lien term loan B, due 2013, rated B2;
   * $35 million revolving credit facility, due 2011, rated B2;
   * $15 million synthetic LC facility, due 2013, rated B2;
   * $200 million second lien term loan, due 2014, rated Caa1.

These ratings were affirmed:

   * Corporate Family Rating, rated B2.

This ratings were withdrawn:

   * $295 million first lien term loan, due 2012, rated B2,
   * $40 million revolving credit facility, due 2011, rated B2,
   * $65 million second lien term loan, due 2013, rated Caa1.

The ratings and outlook may deteriorate if free cash flow to debt
were to decline below 2% and if leverage were to increase above
5.5x for an extended period.  Upward rating pressure could arise
if the company's free cash flow to debt improves to over 10% and
if total debt to EBITDA falls below 3.5x on a sustainable basis.

United Subcontractors, Inc., is headquartered in Minneapolis,
Minnesota.  Revenues for 2005 were $483 million.


USINTERNETWORKING INC: Joins Forces with AT&T in $300 Million Deal
------------------------------------------------------------------
AT&T Inc.' subsidiary, AT&T Corp., has agreed to acquire privately
held USinternetworking, Inc., for approximately $300 million in
cash and assumed debt.

The transaction, which is expected to close in the fourth quarter,
is designed to enhance AT&T's enterprise service offerings.  It
strategically aligns USi's software and eBusiness management
services and consulting expertise with AT&T's existing portfolio
of enterprise hosting and managed services.

Following the acquisition, USi will operate as a wholly owned
subsidiary and business unit within AT&T's existing enterprise
services organization, which is led by Group President Forrest
Miller.  AT&T expects to retain USi's team and its domestic and
international operations.

"The addition of USi's technology and expertise in applications
management to AT&T's global reach, networking expertise and
extensive hosting capabilities will broaden the range of solutions
for our customers," said Mr. Miller.

"Our enhanced capabilities will enable businesses around the globe
to more efficiently and effectively manage their core operations,
enhance their productivity and derive further business value from
their relationship with AT&T," Mr. Miller said.

"The USi team is excited to be joining forces with AT&T," said
Andrew A. Stern, USi's chairman and chief executive officer.
"Over the past eight years, USi has developed an unmatched ability
to deliver enterprise-scale applications as fully integrated, on-
demand services.  Combining our capabilities with AT&T's global
footprint creates an unparalleled opportunity for growth and the
basis for continued market leadership for years to come."

Mr. Stern will join AT&T as CEO of USi upon the closing of the
transaction.

                           About AT&T

AT&T -- http://www.att.com/-- provides an array of hosted managed
services capabilities that support the IT operations of customers
ranging from small and medium businesses up to the largest global
corporations.  AT&T Inc. holds a 60 percent ownership interest in
Cingular Wireless, which is the No. 1 U.S. wireless services
provider with 57.3 million wireless customers.

                            About USi

Headquartered in Annapolis, Maryland, USinternetworking, Inc., --
http://www.usi.com/-- is an independent Application Service
Provider specializing in managed enterprise solutions and on
demand services for Fortune 1000 companies.  USi delivers
application outsourcing, remote management, professional services,
ISV enablement, and eBusiness development and hosting to more than
150 world-class organizations in over 30 countries.  The Company
and its affiliates filed for chapter 11 protection on Jan. 7, 2002
(Bankr. D. Md. Lead Case No. 02-50215).  Paul M. Nussbaum, Esq.,
at Whiteford, Taylor & Preston, represents the Debtors.  Lindsee
P. Granfield, Esq., at Cleary, Gottlieb, Steen & Hamilton,
represented the creditors' committee.  The Court confirmed the
Company's Chapter 11 Reorganization Plan on May 7, 2002.


VERESTAR INC: Committee Wants Court Nod on Settlement Procedures
----------------------------------------------------------------
The Official Committee of Unsecured Creditors in Verestar Inc. and
its debtor-affiliates' Chapter 11 cases asks the Honorable Allan
L. Groper of the U.S. Bankruptcy Court for the Southern District
of New York for authority to compromise, settle and release any
avoidance actions the Committee deems appropriate for settlement
in accordance with the Committee's proposed procedures.

The Committee tells the Court that approval of the Proposed
Procedures will facilitate the Committee's ability to resolve the
Avoidance Actions in a manner that minimizes costs to the Estates
while maximizing recoveries to the creditors.

                       Settlement Procedures

The Committee is evaluating the Avoidance Actions and
distinguishing those actions that should proceed to trial from
those actions that may be settled on terms favorable to the
Estates.  Any Avoidance Action deemed appropriate for settlement
will be placed into one of three classes based on the Committee's
determination of the amount of the defendant's liability in light
of the defenses demonstrated by the defendant.

The proposed settlement will then be effectuated in accordance
with these procedures:

   a) Class 1 Settlement -- liability of $100,000 and less

      The Committee may fully and finally settle, without further
      Notice or Court order, any Avoidance Action in which the
      Defendant has demonstrated to the sole satisfaction of the
      Committee that the defendant's liability is $100,000 or
      less.

   b) Class 2 Settlement -- liability greater than $100,000, but
      less than $300,000

      The Committee may settle any Avoidance Action in which the
      defendant has demonstrated to the sole satisfaction of the
      Committee that the defendant's liability is greater than
      $100,000, but less than $300,000 in accordance with the
      procedures in subsection (b).

      The Committee will provide five business days' written
      notice to counsel for the Debtors and to the Office of the
      United States Trustee of each proposed Class 2 Settlement.

      Any objection to a proposed Class 2 Settlement will be in
      writing, describe in detail the basis for the objection and
      served upon the Class 2 Notice Parties.

      The claims subject to any Class 2 Settlement will become
      fully and finally settled, without further notice or Court
      order, if no objection by the Class 2 Notice Parties is
      received by the Committee within the Class 2 Notice Period.
      In the event the objection is received by the Committee
      during the Class 2 Notice Period, the proposed Class 2
      Settlement will not become effective until:

         (i) the objecting Class 2 Notice Party consents in
             writing to the proposed Class 2 Settlement; or

        (ii) the Court enters an Order approving the Class 2
             Settlement.

   c) Class 3 Settlement -- liability of $300,000 and greater

      The Committee may settle any Avoidance Action in which the
      Committee believes that the defendant's liability is
      $300,000 or greater only by filing a motion with
      the Court under Bankruptcy Rule 9019(a) in accordance with
      the procedures in subsection (c).

      The Committee will provide 15 calendar days' written notice
      of the Class 3 Settlement Motion to the:

         (i) Class 2 Notice Parties;

        (ii) defendant; and

       (iii) parties requesting special notice pursuant to
             Bankruptcy Rule 2002.

      The Court may enter an Order approving the Class 3
      Settlement Motion, without conducting a hearing, if no
      objection by the Class 3 Notice Parties is received by the
      Committee within the Class 3 Notice Period.

      Any objection to a proposed Class 3 Settlement Motion will
      be in writing, describe in detail the basis for the
      objection, and will be filed and served in accordance with
      the Bankruptcy Rules and the Local Bankruptcy Rules.

      If a written objection by any of the Class 3 Notice Parties
      to the Class 3 Settlement Motion is timely filed and served,
      a hearing on the Class 3 Settlement Motion will be scheduled
      and notice of the hearing will be provided to the Class 3
      Notice Parties, including the objecting party.

The Committee submits that the Settlement Procedures should be
approved because:

   (a) the plain language of, and the policies underlying, the
       Bankruptcy Code and the Bankruptcy Rules permit the
       Procedures;

   (b) the Committee has a duty to (and will) ensure that each
       settlement is fair, equitable and in the best interest of
       the unsecured creditors as a class; and

   (c) implementation of the Settlement Procedures will generate
       the greatest recovery from the Avoidance Actions for the
       lowest cost.

Headquartered in Fairfax, Virginia, Verestar, Inc. --
http://www.verestar.com/-- was a provider of satellite and
terrestrial-based network communication services prior to the sale
of substantially all of its assets.  Verestar is a wholly owned
subsidiary of American Tower Corporation, a non-debtor.  The
Company and two of its affiliates filed for chapter 11 protection
on December 22, 2003 (Bankr. S.D.N.Y. Case No. 03-18077).  Matthew
Allen Feldman, Esq., at Willkie Farr & Gallagher LLP represents
the Debtors.  When the Company filed for protection from its
creditors, it listed $114 million in assets and more than
$635 million in debts.  David S. Rosner, Esq., Cindy C. Kelly,
Esq., Michael J. Bowe, Esq., Brian Condon, Esq., and Erin
Zavalkoff, Esq., at Kasowitz, Benson, Torres & Friedman LLP,
represent the Official Committee of Unsecured Creditors.  Barry N.
Seidel, Esq., and Scott E. Eckas, Esq., at King & Spalding LLP,
represent American Tower Corporation and the Individual
Defendants.  Barry H. Berke, Esq., and Stephen M. Sinaiko, Esq.,
at Kramer, Levin, Naftalis & Frankel, LLP, represent the Bear
Stearns Defendants.


VISTEON CORP: S&P Affirms B+ Rating and Removes Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit rating on Van Buren Township, Michigan-based Visteon Corp.,
and removed the rating from CreditWatch with negative implications
where it was placed on Aug. 21, 2006.

Visteon, a global manufacturer of automotive components, has total
debt of about $2.3 billion.  The rating outlook is negative.

The affirmation follows Standard & Poor's review of the impact
of Ford Motor Co.'s planned third and fourth quarter vehicle
production cuts on Visteon's credit profile.  Ford is Visteon's
largest customer, accounting for 48% of sales.  Sales to Ford in
North America, where the production cuts are concentrated, account
for 24% of Visteon's sales.  Ford's vehicle production will be
down 15% in the second half of the year, with light trucks making
up the bulk of the reduction, down 278,000 units, or 25%.

Standard & Poor's expects the production cuts to cause Visteon's
results to fall short of its most recent guidance, which calls for
EBIT before restructuring of $170 million - $200 million and free
cash flow of $50 million.

"However, the shortfall is expected to be less than $50 million,
and Visteon should have the wherewithal to absorb the earnings and
cash flow hit without significantly impairing its ability to meet
its debt service obligations," said Standard & Poor's credit
analyst Martin King.

Two credit facilities recently put in place in the U.S. and
Europe, along with strong cash balances, give the company
substantial liquidity to deal with near-term challenges in the
auto industry.

Longer term, Visteon's continued progress under a comprehensive
restructuring program, and the gradual improvement in customer
diversity, should allow the company to raise earnings and cash
flow during the next few years despite the difficulties facing
Ford.

Recent press reports indicate that Visteon is engaged in
discussions surrounding the potential sale of the company.  At
this time, the ratings do not incorporate any assumptions about
the likelihood or timing of a potential transaction.


VOLT INFORMATION: Earns $8.4 Million for the Quarter Ended July 30
------------------------------------------------------------------
Volt Information Sciences, Inc., filed with the Securities and
Exchange Commission, its financial report for the three and nine
months ended July 30, 2006 on Sept. 8, 2006.

In the first nine months of fiscal 2006, consolidated net sales
increased by $140.8 million, or 9%, to $1.7 billion, from the
comparable period in fiscal 2005.

Net income for the first nine months of fiscal 2006 was $17.1
million compared to net income of $8.7 million in the comparable
2005 period.

In the third quarter of fiscal 2006, consolidated net sales
increased by $41.4 million, or 8%, to $584.9 million, from the
comparable period in fiscal 2005.

Net income for the third quarter of fiscal 2006 was $8.4 million
compared to $5 million in the third quarter of 2005.

Cash and cash equivalents, decreased by $16.7 million to $45.3
million in the nine months ended July 30, 2006.

Operating activities provided $79.2 million of cash in the first
nine months of fiscal 2006.  In the comparable fiscal 2005 period,
operating activities provided $36.7 million in cash.

Under the Company's accounts receivable securitization program, at
July 30, 2006, Three Rivers Funding Corporation had purchased from
Volt Funding a participation interest of $110 million out of a
pool of approximately $270.8 million of receivables.

At July 30, 2006, the Company had total outstanding foreign
currency bank borrowings of $10.4 million, $6.4 million of which
were under its credit agreement.  The bank borrowings provide a
hedge against devaluation in foreign currency denominated assets.

                        Stock Repurchase

The Company disclosed that on Sept. 6, 2006, its Board of
Directors had authorized the repurchase of up to 1.5 million
shares of the Company's common stock from time to time in open
market or private transactions, in order to fund awards under the
"Volt Information Sciences, Inc. 2006 Incentive Stock Plan".

A full text-copy of the Company's financial report for the three
and nine months ended July 30, 2006 may be viewed at no charge at
http://ResearchArchives.com/t/s?1166

Volt Information Sciences, Inc. -- http://www.volt.com/--  
provides national Staffing Services and Telecommunications and
Information Solutions to Fortune 100 customers.  Operating through
a network of over 300 Volt Services Group branch offices, the
Staffing Services segment fulfills IT and other technical,
commercial and industrial placement requirements of its customers,
on both a temporary and permanent basis.  The Telecommunications
and Information Solutions businesses, which include the
Telecommunications Services, Computer Systems and Telephone
Directory segments, provide complete telephone directory
production and directory publishing; a full spectrum of
telecommunications construction, installation and engineering
services; and advanced information and operator services systems
for telephone companies.

                           *     *     *

As reported in the Troubled Company Reporter on July 4, 2006 Fitch
Ratings upgraded Volt Information Sciences' Issuer Default Rating
to 'BB' from 'BB-', and has affirmed its senior secured rating at
'BBB-'.  The Rating Outlook is Stable.


WELD WHEEL: U.S. Trustee Names Seven-Member Creditors' Committee
----------------------------------------------------------------
Nancy J. Gargula, the U.S. Trustee for Region 13, appointed seven
creditors to serve on an Official Committee of Unsecured Creditors
in Weld Wheel Industries, Inc., and its debtor-affiliates' chapter
11 cases:

     1. Ormet Primary Aluminum Corporation
        Attn: John Teitz
        P. O. Box 176
        State Route 7
        Hannibal, OH 43931-0176
        Tel: (740) 820-1800
        Fax: (740) 820-1810

     2. Invader Specialties, Inc.
        Attn: Jeffrey J. Carey
        212 NE Tudor Road
        Lee's Summit, MO 64086
        Tel: (816) 246-9445
        Fax: (816) 525-1555

     3. AFX Group, Inc.
        Attn: William J. Madden
        7451 Warner Avenue, E-108
        Huntington Beach, CA 92647
        Tel: (714) 323-6255
        Fax: (714) 903-7608

     4. International Paper
        Attn: Traci E. Cochran
        4049 Willow Lake Boulevard
        Memphis, TN 38118
        Tel: (901) 419-1270
        Fax: (901) 419-1235

     5. UPS
        Attn: Kelli Bohuslav-Kail
        Steve Sass
        55 Glenlake Parkway
        Atlanta GA 30328
        Tel: (410) 773-4033
        Fax: (410)773-4057

     6. Jackson Lea
        Attn: Beth Klimezak
        PO Box 699
        Conover, NC 28613
        Tel: (828) 466-7312
        Fax: (828) 464-7094

     7. Carroll's Inc., dba Carroll Tire Company
        Attn: Sarah Adair
        4770 Hickory Hill Road
        Memphis TN 38141
        Tel: (901) 541-3621
        Fax: (901) 541-3758

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense.  They may investigate the Debtor's 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 Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.

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.  When the Debtor sought protection from
its creditors, it estimated its assets and debts at $10 to
$50 million.


WELD WHEEL: Creditors' Committee Taps Spencer Fane as Counsel
-------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in Weld
Wheel Industries, Inc., and its debtor-affiliates' bankruptcy case
asks the U.S. Bankruptcy Court for the Western District of
Missouri, Western Division, for permission to retain Spencer Fane
Britt & Browne LLP as its counsel.

The Committee selected Spencer Fane based on the firm's extensive
experience in Chapter 11 proceedings, and in corporate,
litigation, securities, tax, real estate and solvency matters.

Spencer Fane will:

    a. advise the Committee with respect to its rights, duties and
       powers as an official unsecured creditors' committee;

    b. advise the Committee with respect to terms, conditions and
       documentation of financing agreements, cash collateral
       orders and related transactions;

    c. advise the Committee in connection with any potential sale
       of assets or businesses;

    d. investigate the nature and validity of liens asserted
       against Debtors' assets and to advise the Committee
       concerning the enforceability of these liens;

    e. investigate and advise the Committee with respect to the
       taking of actions necessary to collect and, in accordance
       with applicable law, recover property for the benefit of
       the estates;

    f. prepare and submit on behalf of the Committee, among other
       things, applications, motions, pleadings, orders, notices,
       schedules and other legal papers to be prepared and
       submitted in the Debtors' case, and review financial
       and other reports;

    g. advise the Committee concerning and to prepare responses to
       applications, motions, pleadings, notices and other
       documents;

    h. counsel the Committee in connection with the formulation,
       negotiation and promulgation of a plan or plans of
       reorganization and related documents;

    i. appear on behalf of the Committee at all hearings scheduled
       before the Court;

    j. review pending litigation and evaluating and advising the
       Committee concerning appropriate actions to be taken under
       the circumstances; and

    k. represent the Committee, and perform all other legal
       services for the Committee that may be necessary, in
       connection with this case.

The current hourly billing rates for Spencer Fane's professionals
are:

       Designation                  Hourly Rate
       -----------                  -----------
       Partners                     $260 - $410
       Associates                   $195 - $250
       Paralegals                   $110 - $140

Lisa A. Epps, Esq., at Spencer Fane, assures the Court that her
firm does not hold any interest adverse to the Debtors' estates
and is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.

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.  When the Debtor sought protection from
its creditors, it estimated its assets and debts at $10 to
$50 million.


WINN-DIXIE: Judge Funk Approves Assumption of Seven Store Leases
----------------------------------------------------------------
Judge Funk of the U.S. Bankruptcy Court for the District of
Florida overrules the objections of five landlords and authorizes
Winn-Dixie Stores, Inc., and its debtor-affiliates to assume the
leases of Store Nos. 84, 599, 736, 1852, 2213, 2230, and 2333,
effective as of the effective date of their Joint Plan of
Reorganization.

The Landlords are E&A Acquisitions Two LLP, E&A Investments LP,
E&A Southeast LP, E&A Financing II LP, and GLA LLC.

Judge Funk clarifies that if the Plan will not become effective,
the Landlords may retain any cure amounts paid by the Debtors
before the Effective Date, and the Store Leases will be deemed
rejected.

In addition, Judge Funk approves the assumption of the lease of
Store No. 6 and directs the Debtors to pay the landlord, Skinners
of Point Meadows, Inc., any undisputed cure amounts due on the
Effective Date.  If the Debtors and Skinner are unable to resolve
Skinner's cure objection consensually, the Debtors will set the
cure objection for hearing before the Court.

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: Sells Harahan Warehouse Facility to Ackel for $6.75MM
-----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates solicited
offers for the warehouse facility located in Jefferson Parish,
Louisiana -- Harahan Warehouse Facility.  However, no competing
bid for the Facility was received.

Accordingly, the U.S. Bankruptcy Court for the Middle District of
Florida authorizes the Debtors to sell the Harahan Facility to
Ackel Real Estate, LLC, and John Georges.

As reported in the Troubled Company Reporter on Aug. 15, 2006,
before the bankruptcy filing, the Debtors used the Harahan
Warehouse Facility to supply stores located in Louisiana.  Since
the bankruptcy filing, the Debtors have consolidated their
warehouse operations for this area into their Hammond, Louisiana
Facility and no longer need the Harahan Warehouse Facility.

Since filing for bankruptcy, the Debtors have marketed the Harahan
Warehouse Facility extensively through DJM Asset Management, Inc.
DJM sent over 2,500 sale notices for the Harahan Warehouse
Facility to potential purchasers.  Through DJM's efforts, the
Debtors have received four offers, including the offer by Ackel
for $6,750,000.  According to the Debtors, Ackel's offer is the
highest or otherwise best offer for the Harahan Warehouse
Facility.

On Aug. 3, 2006, WD Logistics and Ackel entered into a Facility
Agreement, which provides, among other things, that:

   -- Ackel has deposited $2,000,000 in escrow;

   -- The assets will be transferred free and clear of any liens,
      claims, interests and encumbrances other than the Permitted
      Encumbrances;

   -- The initial minimum overbid that may be accepted by the
      Debtors at any auction must have a value of at least
      $6,952,500; and

   -- WD Logistics has agreed to pay Ackel a termination fee of
      $50,000 for Ackel's expenses in the event Ackel is not the
      successful bidder at the Auction for the Assets.

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: Leesburg & Edgewood Bids Must be Received by Sept. 18
-----------------------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates seek authority
from the U.S. Bankruptcy Court for the Middle District of Florida
to sell:

   (1) the Leesburg Outparcel to the State of Florida Department
       of Transportation; and

   (2) the Edgewood Outparcel to AJDC LLC, or to a party
       submitting a higher or better offer.

D.J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in
New York, relates that the Debtors own:

   (a) a one-half fee simple interest in a tract of land located
       in Leesburg, Florida; and

   (b) a tract of land facing Edgewood Avenue in Jacksonville,
       Florida.

The Debtors have no plans to develop the Outparcels, Mr. Baker
says.

The Debtors have marketed the Leesburg and Edgewood Outparcels
extensively through DJM Asset Management, Inc.  The Debtors
received two offers for the Leesburg Outparcel, and three for the
Edgewood Outparcel.

After reviewing the offers, the Debtors have determined that the
bids of the Florida Transportation Dept. and AJDC are currently
the highest and best offers for the Outparcels, Mr. Baker says.

               Leesburg Outparcel Purchase Agreement

On Aug. 18, 2006, the Florida Transportation Dept. entered into
a real estate purchase agreement with the Debtors and Huber
Investments, which holds the remaining 50% interest in the
Leesburg Outparcel.  Material terms of the Leesburg Outparcel
Purchase Agreement include:

   (i) The net aggregate purchase price for the entire fee simple
       interest in the Leesburg Outparcel is $354,500, of which
       $177,250 will go to the Debtors;

  (ii) The Debtors are responsible for payment of the commission
       due to their brokers; and

(iii) The Leesburg Outparcel and related assets are to be
       transferred free and clear of any liens, claims, interests
       and encumbrances other than the permitted encumbrances.

               Edgewood Outparcel Purchase Agreement

The Debtors and AJDC entered into a real estate purchase
agreement on March 16, 2006, and have amended the agreement seven
times since then.  Material terms of the Edgewood Outparcel
Purchase Agreement include:

     * The net aggregate purchase price for the Edgewood
       Outparcel is $480,000.  AJDC has deposited $35,000 with
       escrow agent Smith, Gambrell & Russell LLP;

     * The Debtors have agreed to pay a $20,000 termination fee
       if AJDC is not the successful bidder at the auction for
       the Edgewood Outparcel;

     * The Debtors are responsible for payment of a brokerage
       commission of 3% of the Purchase Price due to AJDC's
       broker if the transaction is consummated; and

     * The Edgewood Outparcel are to be transferred free and
       clear of liens, claims, interests and encumbrances other
       than the permitted encumbrances.

Notwithstanding that the Edgewood Outparcel has been sufficiently
marketed, the Debtors are soliciting higher and better bids for
the property.

Interested bidders are directed to submit their offers for the
Edgewood Outparcel and related assets by Sept. 18, 2006, to
James Avallone at DJM, 445 Broadhollow Road, Suite 417, Melville,
New York 11747.  All bids must comply with the Court-approved
bidding procedures.

If the Debtors receive a higher or better offer, they will
conduct an auction at the offices of Smith Hulsey & Busey in
Jacksonville, Florida, on Sept. 20, 2006.

In an effort to close the two transactions as promptly as
possible, the Debtors further ask the Court to waive the 10-day
stay period.

Deadline for filing objections to the two transactions is on
Sept. 14, 2006.

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. 52; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WORLDCOM INC: Court Dismisses Next Factors' Claims Against APCC
---------------------------------------------------------------
At APCC Services Inc.'s behest, the U.S. Bankruptcy Court for the
District of New York dismissed, with prejudice, any and all claims
or requests asserted by Next Factors Inc. against APCC.

To recall, WorldCom Inc. and its debtor-affiliates filed their
First Omnibus Motion for Deemed Schedule Amendments in October
2004.  In response to the Omnibus Motion, Next Factors asked the
Court to grant it relief against APCCS based on its purchase of
certain claims of payphone service providers for whom APCCS filed
proofs of claim in the Debtors' bankruptcy cases.

Subsequently, APCCS opposed, and asked the Court to deny, Next
Factors' response.  APCCS asserted that:

   -- Next Factors is not entitled to the relief it sought under
      the facts presented and under applicable law; and

   -- the outcome of any dispute between the parties could not
      have any effect on the administration of the Debtors'
      estates, and is therefore not within the Court's "related
      to" jurisdiction.

The Court then directed the parties to meet and confer with
respect to scheduling and procedural matters, including a time
frame for conducting and completing discovery and briefing.

On APCCS' behalf, Jeffrey Rhodes, Esq., at Dickstein, Shapiro,
Morin & Oshinsky, LLP, in Washington, D.C., contacted Next
Factors' then-counsel of record, David Stich, Esq., at Solomon
Pearl Blum Heymann & Stich, L.L.P., to discuss a possible
framework for resolving the dispute.

However, Mr. Stitch disclosed that preliminary discussions could
not move forward because he was unable to communicate with Next
Factors on the matter.  Mr. Stitch informed the Court that if he
remained unable to communicate with Next Factors, he would
withdraw as its counsel.

Mr. Stich and Solomon Pearl eventually withdrew as Next Factors'
counsel, citing substantially disagreements over legal strategies
to employed in prosecuting claims against APCCS.

The Court granted the Withdrawal Motion and set the matter for
trial.  Judge Gonzalez also ordered Next Factors to hire another
counsel and to give notice to the Court by Aug. 10, 2006.

Mr. Rhodes pointed out that Next Factors failed to comply with the
Court's Order.  Next Factors did not file any notice of
appearance by counsel in the proceedings.

"Thus, Next Factors failed to prosecute any of its claims and did
comply with the orders and directives of the Court," Mr. Rhodes
argued.  "The Court has given Next Factors a more than fair
opportunity to be heard on its claims against APCCS in this case,
but [it] has, without excuse, failed and refused to avail itself
of such opportunity."

Moreover, Next Factors is not represented by an attorney in the
Debtors' cases, Mr. Rhodes added.

Under these circumstances, no sanction other than dismissal of
Next Factors' claims is appropriate, Mr. Rhodes said.

                         About WorldCom

WorldCom, Inc., a Clinton, MS-based global communications company,
filed for chapter 11 protection on July 21, 2002 (Bankr. S.D.N.Y.
Case No. 02-13532).  On March 31, 2002, WorldCom listed
$103,803,000,000 in assets and $45,897,000,000 in debts.  The
Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and
on Apr. 20, 2004, the Company formally emerged from U.S. Chapter
11 protection as MCI, Inc.  On Jan. 6, 2006, MCI merged with
Verizon Communications, Inc.  MCI is now known as Verizon
Business, a unit of Verizon Communications.  (WorldCom Bankruptcy
News, Issue No. 124; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


WORLDCOM: Court Okays Revised Notice on Louisiana Settlement Pact
-----------------------------------------------------------------
The Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the
Southern District of New York approved the revised individual
notices mailed to more than 7,000 class members regarding
settlement of a Louisiana right of way class action suit filed by
land owners against WorldCom Inc. and its debtor-affiliates.

The Court noted that the Reorganized Debtors and Claimants XCL,
Ltd., LM Holding Assoc. LP, David Odom, Katherine McClellan
Sibille, the Sibille Co., Inc., Sylvia Weil Marcuse, H.M. Kimball
Jr. and Elizabeth Kimball Lewis have made non-material revisions
to the Notice so as to tailor it specifically to parishes in
Orleans, Jefferson, St. Tammany and Calcasieu.

Accordingly, Judge Gonzalez authorized the Parties to distribute
the Revised Notice to settlement class members owning property
located in the Hurricane-Affected Parishes.

The Settlement Class Members will have 90 days from the mailing
of the Revised Notice to seek exclusion from or to object to the
Settlement.

The Court also certified the Settlement Class for settlement
purposes and approved pursuant to Rule 23 and Rule 7023 of
Federal Rule of Civil Procedure and Federal Rules of Bankruptcy
Procedure.

Any objections to the Settlement Motion to the extent not
resolved are overruled.

                   Louisiana Suit Settlement

On Oct. 5, 1994, William Kimball, H.M. Kimball, Jr., and
Elizabeth Kimball Lewis, together with XCL, Ltd., Katherine
McClelland Sibille, The Sibille Co., Inc., Lutcher Moore Land &
Royalty Company, L.M. Holding Associates, LP, Colonial Sugars,
Inc., and David Odom filed two separate class action petitions
against the Debtors in the 18th Judicial District Court, West
Baton Rouge Parish, Louisiana, which were consolidated for pre-
trial management, administration and discovery on July 3, 1996.

In their class action petitions, the Louisiana Plaintiffs alleged
improper location of Sprint Communications' and the predecessors
of MCI WorldCom Network Services Inc.'s telecommunications
facilities on their lands.

On Nov. 18, 2000, the Parties to the Louisiana Suits reached
an agreement in principle for the settlement of the claims, which
settlement was approved by the Louisiana State Court in September
2001.

On May 29, 2002, the Louisiana Court approved the form of notice
and the procedure of distribution of the Notice of the
Class Action Settlement Agreement.  The Notice was distributed to
over 8,000 landowners.

As of the Debtors' bankruptcy filing, the Louisiana Suits were
stayed as to MWNS.  However, it went forward with respect to
Sprint.  The Louisiana Court granted final approval to Sprint's
Settlement Agreement on Dec. 5, 2002.

The Louisiana First Circuit Court of Appeals subsequently issued a
decision, reversing the approval on the ground that the class
members were not given adequate notice about MWNS's bankruptcy
filing, which could have an effect on how the settlement was
implemented with respect to the remaining parties.

After the Debtors' bankruptcy filing, numerous Louisiana
landowners filed timely proofs of claims asserting right-of-way
claims or claims based on the Settlement Agreement.  To resolve
the proofs of claim and the underlying right-of-way causes of
action, the Claimants and MWNS agreed to go forward with the
Settlement Agreement with respect to MWNS as a prepetition
contract.

On May 18, 2005, William Kimball, H.M. Kimball, Jr., Elizabeth
Kimball Lewis and the Debtors executed a Settlement Implementation
Agreement.

The Kimballs then asked the Court to, among others:

   (a) certify a settlement class of Louisiana landowners with
       potential claims based on the presence of the Debtors'
       fiber optic cables in the rights of way on or adjoining
       the landowners' property; and

   (b) designate representatives of the settlement class.

Judge Gonzalez preliminarily certified the Settlement Class for
settlement purposes pursuant to Civil Rule 23 and Rule 7023 of the
Federal Rules of Civil Procedure.

The Court also appointed William Kimball, H.M. Kimball Jr., and
Elizabeth Kimball Lewis as representatives of the Settlement
Class.

                         About WorldCom

WorldCom, Inc., a Clinton, MS-based global communications company,
filed for chapter 11 protection on July 21, 2002 (Bankr. S.D.N.Y.
Case No. 02-13532).  On March 31, 2002, WorldCom listed
$103,803,000,000 in assets and $45,897,000,000 in debts.  The
Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and
on Apr. 20, 2004, the Company formally emerged from U.S. Chapter
11 protection as MCI, Inc.  On Jan. 6, 2006, MCI merged with
Verizon Communications, Inc.  MCI is now known as Verizon
Business, a unit of Verizon Communications.  (WorldCom Bankruptcy
News, Issue No. 124; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


WORLDCOM: La. Class Suit Counsel Can File Fee App. Until Sept. 28
-----------------------------------------------------------------
The Honorable Arthur Gonzalez of the U.S. Bankruptcy Court for the
District of New York gave the counsel for the Louisiana right of
way claimants until Sept. 28, 2006 to file their applications for
interim attorneys' fees.

The Louisiana Claimants are landowners holding potential claims
based on the presence of WorldCom Inc. and its debtor-affiliates'
fiber optic cables in the rights of way on or adjoining the
Claimants' property.

The Louisiana Claimants are represented by:

   a) Victor L. Marcello, Esq., Donald T. Carmouche, Esq., and
      John H. Carmouche, Esq., at Talbot, Carmouche & Marcello;

   b) Michael R. Mangham, Esq., and Donald J. Ethridge, Esq., at
      Mangham & Associates LLC;

   c) Willaim E. Steffes, Esq., at Steffes, Vingiello, & McKenzie,
      LLC;

   d) Patrick W. Pendley, Esq., at Patrick W. Pendley, APLC; and

   e) Allen J. Myles, Esq., at Myles & Myles.

The Interim Fee Application Order relates to the Court's approval
of the revised individual notices mailed to more than 7,000 class
members regarding settlement of a class action suit, which the
Louisiana Claimants filed against the Debtors.

                       Louisiana Suit Settlement

On Oct. 5, 1994, William Kimball, H.M. Kimball, Jr., and
Elizabeth Kimball Lewis, together with XCL, Ltd., Katherine
McClelland Sibille, The Sibille Co., Inc., Lutcher Moore Land &
Royalty Company, L.M. Holding Associates, LP, Colonial Sugars,
Inc., and David Odom filed two separate class action petitions
against the Debtors in the 18th Judicial District Court, West
Baton Rouge Parish, Louisiana, which were consolidated for pre-
trial management, administration and discovery on July 3, 1996.

In their class action petitions, the Louisiana Plaintiffs alleged
improper location of Sprint Communications' and the predecessors
of MCI WorldCom Network Services Inc.'s telecommunications
facilities on their lands.

On Nov. 18, 2000, the Parties to the Louisiana Suits reached
an agreement in principle for the settlement of the claims, which
settlement was approved by the Louisiana State Court in September
2001.

On May 29, 2002, the Louisiana Court approved the form of notice
and the procedure of distribution of the Notice of the
Class Action Settlement Agreement.  The Notice was distributed to
over 8,000 landowners.

As of the Debtors' bankruptcy filing, the Louisiana Suits were
stayed as to MWNS.  However, it went forward with respect to
Sprint.  The Louisiana Court granted final approval to Sprint's
Settlement Agreement on Dec. 5, 2002.

The Louisiana First Circuit Court of Appeals subsequently issued a
decision, reversing the approval on the ground that the class
members were not given adequate notice about MWNS's bankruptcy
filing, which could have an effect on how the settlement was
implemented with respect to the remaining parties.

After the Debtors' bankruptcy filing, numerous Louisiana
landowners filed timely proofs of claims asserting right-of-way
claims or claims based on the Settlement Agreement.  To resolve
the proofs of claim and the underlying right-of-way causes of
action, the Claimants and MWNS agreed to go forward with the
Settlement Agreement with respect to MWNS as a prepetition
contract.

On May 18, 2005, William Kimball, H.M. Kimball, Jr., Elizabeth
Kimball Lewis and the Debtors executed a Settlement Implementation
Agreement.

The Kimballs then asked the Court to, among others:

   (a) certify a settlement class of Louisiana landowners with
       potential claims based on the presence of the Debtors'
       fiber optic cables in the rights of way on or adjoining
       the landowners' property; and

   (b) designate representatives of the settlement class.

Judge Gonzalez preliminarily certified the Settlement Class for
settlement purposes pursuant to Civil Rule 23 and Rule 7023 of the
Federal Rules of Civil Procedure.

The Court also appointed William Kimball, H.M. Kimball Jr., and
Elizabeth Kimball Lewis as representatives of the Settlement
Class.

                         About WorldCom

WorldCom, Inc., a Clinton, MS-based global communications company,
filed for chapter 11 protection on July 21, 2002 (Bankr. S.D.N.Y.
Case No. 02-13532).  On March 31, 2002, WorldCom listed
$103,803,000,000 in assets and $45,897,000,000 in debts.  The
Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and
on Apr. 20, 2004, the Company formally emerged from U.S. Chapter
11 protection as MCI, Inc.  On Jan. 6, 2006, MCI merged with
Verizon Communications, Inc.  MCI is now known as Verizon
Business, a unit of Verizon Communications.  (WorldCom Bankruptcy
News, Issue No. 124; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


XTREME COMPANIES: Equity Deficit at June 30 Widens to $9.7 Million
------------------------------------------------------------------
Xtreme Companies, Inc., filed its financial report for the three
and six months ended June 30, 2006, with the Securities and
Exchange Commission.

For the three and six months ended June 30, 2006, the Company
generated net revenues of negative $792,895 and negative $34,305,
respectively, as compared to net revenues of $552,300 and $620,300
for the three and six months ended June 30, 2005.  The major
change in the Company's business that impacted revenues for the
three and six months ended June 30, 2006 was the termination of
its distribution agreement with Wayton Marine International and
the return of product to the Company in the three months ended
June 30, 2006, resulting in negative sales for the year.

The Company had a net loss of $3.6 million and $5.1 million for
the three and six months ended June 30, 2006, respectively, as
compared to the respective net losses of $459,468 and $1.5 million
for the three and six months ended June 30, 2005.

The Company's balance sheet at June 30, 2006 showed total assets
of $5 million and total liabilities of $14.7 million resulting in
a total shareholders' deficit of $9.7 million.  The Company's
total shareholders' deficit at Dec. 31, 2005 stood at
$1.7 million.

Cash and cash equivalents were $49,390 as of June 30, 2006 as
compared to $331,386 as of Dec. 31, 2005.

The Company, as of June 30, 2006, had debts of $14.7 million
including convertible debentures and promissory notes, which total
$8.7 million.  The convertible debentures will fall due in 2009,
2010 and 2011.

A full text-copy of Xtreme Companies' financial report for the
three and six months ended June 30, 2006 may be viewed at no
charge at http://ResearchArchives.com/t/s?116b

Headquartered in Washington, Missouri, Xtreme Companies, Inc.,
(OTC Bulletin Board: XTME) -- http://www.xtremecos.com/--  
manufactures and markets mission-specific Fire-Rescue and Patrol
boats used in emergency, surveillance and defense deployments.
The boats have been marketed and sold directly to fire and police
departments, the U.S. Military and coastal port authorities
throughout the United States.


ZOND-PANAERO: Reports $291,000 Net Income in 2006 Second Quarter
----------------------------------------------------------------
Zond-PanAero Windsystem Partners I filed its second quarter
financial statements for the three months ended June 30, 2006,
with the Securities and Exchange Commission on Aug. 14, 2006.

The Company earned $291,000 on $1.2 million of net revenues for
the three months ended June 30, 2006, compared to $1.4 million of
net income on $2.1 million of net revenues in 2005.

As of June 30, 2006, the Company had no current or planned
commitments for capital expenditures.

                          Sale of Assets

On July 25, 2006, the Company sold substantially all of its assets
to Western Wind Energy Corp pursuant to the Agreement and Plan of
Merger dated as of July 3, 2006, as amended.  On that date, the
Company, PAMC Management Corporation, PanAero California Ltd., a
California limited partnership, Alta Mesa Energy, LLC, Mesa Wind
Developers, Enron Wind Systems, LLC, Zond-PanAero Windsystem
Partners II, a California limited partnership, and Western Wind,
entered into the Omnibus Termination Agreement.

In accordance with the Termination Agreement, effective as July
25, 2006, the parties terminated several agreements related to the
assets sold to Western Wind including the Wind Park Easement
Agreement and the Reservation of Rights Agreement.  The parties to
the terminated agreements released each other from all claims and
liabilities thereunder.  The Company did not incur any early
termination penalties in connection with the termination of the
foregoing agreements.  Pursuant to the terms of the Merger
Agreement, at the closing, the Company received $873,913 for the
sale of its assets.

                Operation and Maintenance Services

The Company and EWS entered into a Seventh Amendment to Windsystem
Management Agreement dated as of Aug. 11, 2006, which extended the
termination date of the Management Agreement from May 31, 2006 to
Sept. 30, 2006.

                           GE Settlement

Pursuant to a Settlement Agreement and Release executed on July 3,
2006, and effective as of May 1, 2006, among other things, EWS
settled claims by GE for amounts owed for operation and
maintenance services rendered relating to the Windsystem.
Pursuant to the Settlement Agreement, EWS paid to GE the sum of
$147,000 related to operation and maintenance services provided by
GE relating to the Windsystem.  As of June 30, 2006, the Company
had a recorded liability to EWS in the amount of $186,000 related
to this obligation.  The settlement payment was made by EWS to GE
in July 2006.  At that time, the Company recognized a $39,000
reduction in its recorded liabilities and operation and
maintenance expenses.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1160

                     Going Concern Doubt

Hein & Associates LLP expressed substantial doubt about Zond-
PanAero Windsystem Partners I's ability to continue as a going
concern after it audited the Company's financial statements for
the fiscal year ended Dec. 30, 2005.  The auditor pointed to the
Company's insufficient cash flows from operations to make payments
of interest in arrears on outstanding debt and certain agreements
relating to the Company's ability to generate electricity expire
in 2006.

                      About Zond-PanAero

Zond-PanAero Windsystem Partners I, a California Limited
Partnership, was formed on June 29, 1984, to purchase, own and
operate a system of 300 Vestas Energy A/S Model V15 wind turbine
electric generators.  The electricity generated by the Turbines is
sold by the Company to its sole customer, Southern California
Edison Company.


* FTI Consulting to Acquire Financial Dynamics for $260 Million
---------------------------------------------------------------
FTI Consulting, Inc. entered into an agreement to acquire
privately held Financial Dynamics International (Holdings) Limited
for approximately $260 million.

"Our acquisition of FD is a unique opportunity to execute, in a
single transaction, many of the strategic objectives for our
international expansion and one that should enable us to achieve
our 2009 Plan a year earlier than expected," Jack Dunn, FTI's
president and chief executive officer, commented.  "First, FD has
senior level, deeply ingrained, trusted advisor relationships with
businesses and governments in important financial centers
throughout the world.  These relationships will allow us to expand
and grow our "gold standard" practices into new markets under the
auspices and through the contacts of FD, a widely recognized and
trusted brand.  Second, FD brings global market leadership to FTI
and our clients in a new practice area -- strategic business and
financial communications -- one of the most critical areas facing
corporate boards and executives given the vital and increasing
importance of reputational risk.  These strategic communications
services represent immediate opportunity and value to our clients
in the U.S. Finally, the core values of the great professionals at
FD are the same as our own: dedication to clients, highest
standards of integrity and a commitment to bring the very best in
intellectual capital to bear on the financial, regulatory and
reputational issues that affect the futures of our clients.  Teams
of professionals from both companies are already at work on the
integration and client service opportunities that will allow us to
hit the ground running."

"FTI is a company we have greatly admired for some time and we
believe this partnership is a perfect commercial, cultural and
strategic fit for FD," Charles Watson, CEO of FD, added.  "We live
and operate in complementary markets and practices where we enjoy
numerous relationships and interests in common.  The potential for
collaboration is compelling.  Joining forces with a recognized
leader in the consulting world that, like FD, focuses on critical
issues that confront clients, also marks a landmark for the
communications industry -- creating the optimal environment in
which FD will continue to thrive and grow for the benefit of all
our staff and, most importantly, our clients.  We are genuinely
excited about our future together."

FD's business is structured around four principal practice areas:

   * Financial Communications: FD provides counsel on matters that
     affect the valuation of companies' securities in the public
     markets, such as M&A transactions, capital market activities
     including IPOs, regulatory and corporate governance issues
     and financial markets intelligence;

   * Brand Communications: FD counsels clients on all issues
     pertaining to protecting and enhancing the reputation of
     their products and services;

   * Public Affairs and Crisis & Issues Management: FD advises on
     issues affecting corporate and organizational reputation,
     relations with governments at the national and local level,
     public policy and all aspects of crisis communications;

   * Business Consulting: FD's business consulting practice is at
     the intersection of all three communications practices.  It
     uses extensive diagnostic research tools to assess brand,
     reputation and valuation issues and develops strategies to
     address and resolve the issues coming from the research.

                         Purchase Price

The purchase price for the acquisition is $260 million, consisting
of $215 million in cash, $20 million in notes and deferred
purchase obligations and $25 million of restricted FTI stock.  To
finance the acquisition of FD, FTI intends to offer $215 million
of senior unsecured notes.  Deutsche Bank Securities, Inc., which
acted as financial advisor to FTI, is committed to provide the
financing to fund the acquisition.  It is anticipated that the
acquisition will close in the first week of October and be
accretive to FTI's 2007 earnings per diluted share.

FD is currently owned by Advent International, a global private
equity firm, and FD management.  Advent has elected to receive
cash for all of its holdings.  Management shareholders are
expected to elect the alternate offer comprised of cash, the FTI
restricted stock and the opportunity to participate in future
contingent consideration of up to $80 million based on exceeding
certain financial objectives over the next five years, which would
further align the interests of FD professionals and FTI and its
shareholders. Robert W. Baird & Co. acted as exclusive financial
advisor to FD.

FTI intends to operate FD as a separate business segment run by
the existing management team, including FD's London based Group
CEO Charles Watson and U.S. CEO Declan Kelly.

Margin Improvement Steps In light of the acquisition and in
keeping with the Company's previously announced commitment to
address underperforming operations, FTI has taken action to
restructure its U.K. operations and consolidate certain non-core
practices in the U.S.  The Company expects to record a one-time
charge related to this of approximately $20 million ($0.28 per
diluted share after tax), in the third quarter, primarily
reflecting severance costs.

Excluding the one-time charge, the Company is maintaining its
earnings guidance for 2006 and continues to expect earnings per
diluted share to be in a range of $1.26 to $1.35, which includes
the impact of the FD acquisition and expensing stock options.

                            About FD

FD is a strategic business and financial communications
consultancy, providing a comprehensive range of solutions for the
communications requirements of the corporate boardroom.  The
Company advises over 750 clients with a staff of over 450 people.
It has offices in London, New York, Washington, San Francisco,
Frankfurt, Paris, Dublin, Boston, Bahrain, Chicago, Hong Kong,
Moscow, Dubai, Manchester, Johannesburg and Cape Town.

                      About FTI Consulting

FTI Consulting Inc. (NYSE:FCN) provides problem-solving consulting
and technology services to major corporations, financial
institutions and law firms when confronting critical issues that
shape their future and the future of their clients, such as
financial and operational improvement, major litigation, complex
investigations, mergers and acquisitions and regulatory issues.
FTI has 25 offices in major U.S. cities, and offices in Europe,
Asia and Australia.  FTI's total workforce of more than 1,400
employees includes numerous PhDs, MBAs, CPAs, CIRAs and CFEs, who
are committed to delivering the highest level of service to
clients.


* PricewaterhouseCoopers Launches U.S. Restructuring Practice
-------------------------------------------------------------
PricewaterhouseCoopers LLP disclosed Tuesday the formal launch of
PricewaterhouseCoopers Corporate Advisory & Restructuring LLC, a
new business providing integrated financial, transactional and
operational services to underperforming and distressed companies.

PricewaterhouseCoopers LLP also disclosed that senior
restructuring advisor Tom Sperry has joined PwC CAR's leadership
team as U.S. Market Leader.  Peter Spratt will serve as president
of PwC CAR and head of PwC's global restructuring practice.

PwC CAR's formation marks the natural extension of
PricewaterhouseCoopers' related service offerings and market
leading global restructuring capabilities into the U.S. market.
These services encompass value-enhancing solutions for companies
at various stages of financial pressure.  With its ability to
leverage the global network of PricewaterhouseCoopers and its
extensive range of services and industry-specific capabilities,
PwC CAR addresses the increasing demand for a suite of financial,
transactional and operational services that clients need to
implement the types of changes that lead to a sustained recovery.

"PwC CAR will bring fresh thinking and a renewed approach to the
corporate turnaround market for the benefit not only of companies
in difficulty, but also for the restructuring business itself,"
said Mr. Spratt.

Commenting on the addition of Mr. Sperry, Mr. Spratt said "Tom
brings a wealth of practical experience and creativity to the
corporate restructuring market in the U.S. that will enhance PwC
CAR's broad capabilities in solving problems of companies facing
operational issues and financial difficulties."

"I am thrilled at the opportunity to work with top professionals
in PwC CAR to help lead and grow our U.S. practice," said Mr.
Sperry.  "I am excited about the capabilities PwC CAR has to
preserve and create value for our clients by drawing on our
already deep restructuring expertise as well as the full range of
services that only a major global organization can provide."

A former managing director at UBS Warburg, where he founded and
headed its Restructuring Group, Mr. Sperry most recently started
and ran a restructuring advisory practice for middle market
mergers and acquisitions firm Goldsmith Agio Helms.  Mr. Sperry
has an extensive background in helping underperforming and
insolvent multinational and middle market companies to restructure
billions of dollars in liabilities in the U.S. and various
countries around the world.

Mr. Sperry has worked as an advisor and investment banker for both
public and private companies in many of the largest out-of-court
and Chapter 11 cases.  These include acting as financial advisor
to multinational Ferruzzi/Montedison Group of Italy on a multi-
tiered $12 billion debt restructuring; advising Integrated Health
Services on its $3.4 billion Chapter 11 debt restructuring and
break-up; and representing the creditors of Confederation Life of
Canada in the largest ever North American insurance company
failure.

PwC CAR provides integrated financial, transactional and
operational services to underperforming and distressed companies.
Drawing upon the global network of PricewaterhouseCoopers member
firms, PwC CAR provides a wide array of services designed to help
troubled companies emerge healthier and drive a sustained
recovery.

The PwC CAR team includes experienced advisors drawn from its
restructuring and corporate finance practices throughout the
global network of PricewaterhouseCoopers.  PwC CAR consolidates
the position of PricewaterhouseCoopers as the dominant global
restructuring practice with approximately 2,000 dedicated
professionals from member firms located in over 60 countries.

In combination with the industry resources of PwC, the PwC CAR
team possesses restructuring experience across numerous industries
and senior members of the U.S.-based PwC CAR team have played
significant roles in many high profile domestic and cross-border
restructurings.  Examples include America West Airlines, Beaulieu
of America, P.A. Bergner/Carson Pirie Scott, ConFederation Life
Insurance, Drax Power, El Paso Electric, Ferruzzi/Montedison
Group, Globopar, Global Telesystems, Huffy Corp., Integrated
Health Services, Iridium Satellite, Marconi, Sylvania, Tower
Automotive, TrizecHahn Corporation, and Von Roll Corporation.

PricewaterhouseCoopers -- http://www.pwc.com/-- provides
industry-focused assurance, tax and advisory services to build
public trust and enhance value for its clients and their
stakeholders.  More than 130,000 people in 148 countries work
collaboratively across our network using Connected Thinking to
develop fresh perspectives and practical advice.

PricewaterhouseCoopers Corporate Advisory & Restructuring LLC is
owned by PricewaterhouseCoopers LLP, a member firm of the
PricewaterhouseCoopers network and is a member of the NASD and
SIPC.  PwC CAR is not engaged in the practice of public
accountancy.


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
September 13-15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Texas Regional Conference
         Hyatt Regency Resort & Spa
            Lost Pines, TX
               Contact: 870-760-7116 or http://www.turnaround.org/

September 14, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      Advanced Restructuring and Plan of Reorganization
         Park Central, New York, NY
               Contact: http://www.airacira.org/

September 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Kick-Off Reception
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

September 15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      BOK Review - Management
         Gardner Carton & Douglas, Chicago, IL
            Contact: 815-469-2935 or http://www.turnaround.org/

September 17-24, 2006
   NATIONAL ASSOCIATION OF BANKRUPTCY TRUSTEES
      Optional Alaska Cruise
         Seattle, Washington
            Contact: 800-929-3598 or http://www.nabt.com/

September 19-20, 2006
   STRATEGIC RESEARCH INSTITUTE
      2nd Annual Euro Distressed Debt Summit
         Le Meridien Parkhotel, Frankfurt, Germany
            Contact: http://www.srinstitute.com/

September 20, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         Bankers Club, Miami, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

September 21, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Young Professionals Group - "Conversations in Networking"
         Dave & Buster's, Philadelphia, PA
            Contact: 215-657-5551 or http://www.turnaround.org/

September 21, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Restructuring Workshop With US
      Bankruptcy Judges Hale, Nelms and Lynn
         Belo Mansion - The Pavilion, Dallas, TX
            Contact: http://www.turnaround.org/

September 24, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Restructuring the Troubled High Tech Company
         Arizona
            Contact: http://www.turnaround.org/

September 25, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      10th Annual Turnaround Tee-off Golf Tournament & Fundraiser
         Green Valley Country Club, Lafayette Hill, PA
            Contact: 215-657-5551 or http://www.turnaround.org/

September 25, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Carolinas Membership Luncheon featuring a presentation by
      James Porter of Mesirow Financial
         City Club, Charlotte, NC
            Contact: 704-319-2288 or http://www.turnaround.org/

September 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         Centre Club, Tampa, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

September 27, 2006
   BEARD AUDIO CONFERENCES
      Year One of BAPCPA: Lessons Learned and Outlook
         A Look at the Business Provisions One Year Later
            Contact: 240-629-3300
            Or http://www.beardaudioconferences.com/

September 27, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Joint Education Program with NYIC Joint Reception
         CFA/RMA/IWIRC
         Woodbridge Hilton, Iselin, NJ
            Contact: http://www.turnaround.org/

September 26-27, 2006
   EUROMONEY
      Asia Pacific High Yield Debt Summit
         JW Marriott Hotel, Hong Kong
            Contact: http://www.euromoneyplc.com/

September 27, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      7th Annual Cross Border Business Restructuring and
         Turnaround Conference
         Banff, Alberta
            Contact: http://www.turnaround.org/

September 27, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      New York Luncheon - Pension Panel Program
      Harmonie Club, New York, NY
           Contact: 541-58-1665 or http://www.airacira.org/

October 3, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Networking Organization of Women Networking Event/
      Fundraiser
         TBD, Philadelphia, PA
            Contact: 215-657-5551 or http://www.turnaround.org/

October 3, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      3rd Annual Golf Outing
         Fox Chapel Golf Club, Pittsburgh, PA
            Contact: 412-644-8794 or http://www.turnaround.org/

October 5, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Commercial Lenders Breakfast
         Sydney, Australia
            Contact: 0438 653 179 or http://www.turnaround.org/

October 6, 2006
   AMERICAN BANKRUPTCY INSTITUTE
      Bankruptcy 2006: Views from the Bench
         Georgetown University Law Center, Washington, DC
            Contact: 1-703-739-0800; http;//www.abiworld.org/

October 10, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Meeting
         Center Club, Baltimore, Maryland
            Contact: 703-912-3309 or http://www.turnaround.org/

October 11, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Professional Development Meeting
         Sydney, Australia
            Contact: 0438 653 179 or http://www.turnaround.org/

October 12, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      UTS Fundamentals of Turnaround Management
         Melbourne, Australia
            Contact: 0438 653 179 or http://www.turnaround.org/

October 11-14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      2006 Annual Conference
         Milleridge Cottage, Long Island, New York
            Contact: 312-578-6900; http://www.turnaround.org/

October 12, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      UTS Fundamentals of Turnaround Management
         Mecure Hotel - Haymarket, Sydney, Australia
            Contact: http://www.turnaround.org/

October 16, 2006
   AMERICAN BANKRUPTCY INSTITUTE
      A Year After BAPCPA
         Georgetown University Law Center, Washington, DC
            Contact: 1-703-739-0800; http://www.abiworld.org/

October 18-19, 2006
   EUROMONEY
      2nd Annual Latin America Syndicated Loans Conference
         JW Marriott Hotel, Miami, FL
            Contact: http://www.euromoneyplc.com/

October 17, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Updates on the New Bankruptcy Law
         Kansas City, Missouri
            Contact: http://www.turnaround.org/

October 19, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Billards Networking Night - Young Professionals
         TBA, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Hedge Funds - Expanded Financing Opportunities in Business
      Turnarounds
         Arizona
            Contact: http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Speaker Series #3
         TBA, Calgary, Alberta
            Contact: 403-294-4954 or http://www.turnaround.org/

October 26, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Speaker Series #3
         TBA, Calgary, Alberta
            Contact: 403-294-4954 or http://www.turnaround.org/

October 27, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast with Coach Dan Reeves
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

October 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      BK/TMA Golf Tournament
         Orange Tree Golf Resort, AZ
            Contact: 623-581-3597 or http://www.turnaround.org/

October 30-31, 2006
   Distressed Debt Summit: Preparing for the Next Default Cycle
      Financial Research Associates LLC
         Helmsley Hotel, New York, NY
            Contact: http://www.frallc.com/

October 31, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         Citrus Club, Orlando, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

October 31 - November 1, 2006
   INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
      IWIRC Annual Conference
         San Francisco, California
            Contact: http://www.iwirc.com/

November 1, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Halloween Isn't Over! - Ghosts of turnarounds past who
         remind you about what you should have done differently
            Portland, Oregon
               Contact: http://www.turnaround.org/

November 1-4, 2006
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         San Francisco, California
            Contact: http://www.ncbj.org/

November 2, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA UK Annual Conference
         Millennium Gloucester Hotel, London, UK
            Contact: http://www.turnaround.org/

November 2-3, 2006
   BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
      Third Annual Conference on Physician Agreements & Ventures
      Successful Strategies for Medical Transactions and
      Investments
         The Millennium Knickerbocker Hotel - Chicago
            Contact: 903-595-3800; 1-800-726-2524;
            http://www.renaissanceamerican.com/

November 7, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Networking Breakfast
         Marriott, Bridgewater, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

November 7-8, 2006
   EUROMONEY
      5th Annual Distressed Debt Investment Symposium
         Hyatt Regency, London, UK
            Contact: http://www.euromoneyplc.com/

November 8, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast Meeting
         Marriott Tyson's Corner, Vienna, Virginia
            Contact: 703-912-3309 or http://www.turnaround.org/

November 8, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Australia National Conference
         Sydney, Australia
            Contact: http://www.turnaround.org/

November 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon Program
         St. Louis, Missouri
            Contact: 815-469-2935 or http://www.turnaround.org/

November 15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Joint Reception with NYIC/NYTMA
         TBA, New York
            Contact: 908-575-7333 or http://www.turnaround.org/

November 15, 2006
   LI TMA Formal Event
      TMA Australia National Conference
         Long Island, New York
            Contact: http://www.turnaround.org/

November 15, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         Citrus Club, Orlando, Florida
            Contact: 561-882-1331 or http://www.turnaround.org/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Bankruptcy Judges Panel
         Duquesne Club, Pittsburgh, Pennsylvania
            Contact: http://www.turnaround.org/

November 16, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Dinner Program
         TBA, Seattle, Washington
            Contact: 503-223-6222 or http://www.turnaround.org/

November 16-17, 2006
   STRATEGIC RESEARCH INSTITUTE
      8th Annual West Distressed Debt Investing Forum
         Venetian Resort Hotel Casino, Las Vegas, NV
            Contact: http://www.srinstitute.com

November 23, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Martini Party
         Vancouver, British Columbia
            Contact: 403-294-4954 or http://www.turnaround.org/

November 27-28, 2006
   BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES
      Thirteenth Annual Conference on Distressed Investing
      Maximizing Profits in the Distressed Debt Market
         The Essex House Hotel - New York
            Contact: 903-595-3800; 1-800-726-2524;
            http://www.renaissanceamerican.com/

November 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         Centre Club, Tampa, FL
            Contact: 561-882-1331 or http://www.turnaround.org/

November 29, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Special Program
         TBA, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

November 29, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Turnaround Industry Trends
         Jasna Polana, Princeton, NJ
            Contact: http://www.turnaround.org/

November 30-December 2, 2006
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Hyatt Regency at Gainey Ranch, Scottsdale, Arizona
            Contact: 1-703-739-0800; http://www.abiworld.org/

December 6, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Dinner
         Portland, Oregon
            Contact: 503-223-6222 or http://www.turnaround.org/

December 7, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Networking Breakfast
         The Newark Club, Newark, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

December 13, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      LI TMA Holiday Party
         TBA, Long Island, New York
            Contact: 631-251-6296 or http://www.turnaround.org/

December 13, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Christmas Function
         GE Commercial Finance, Sydney, Australia
            Contact: 0438 653 179 or http://www.turnaround.org/

December 20, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Extravaganza - TMA, AVF & CFA
         Georgia Aquarium, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

January 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual Lender's Panel Breakfast
         Westin Buckhead, Atlanta, GA
            Contact: http://www.turnaround.org/

February 8-11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Certified Turnaround Professional (CTP) Training
         NY/NJ
            Contact: http://www.turnaround.org/

February 22, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA PowerPlay - Atlanta Thrashers
         Philips Arena, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

February 25-26, 2007
   NORTON INSTITUTES
      Norton Bankruptcy Litigation Institute
         Marriott Park City, UT
            Contact: http://www2.nortoninstitutes.org/

February 2007
   AMERICAN BANKRUPTCY INSTITUTE
      International Insolvency Symposium
         San Juan, Puerto Rico
            Contact: 1-703-739-0800; http://www.abiworld.org/

March 15, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Martini Madness Cocktail Reception with Geraldine Ferraro
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

March 15-18, 2007
   NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES
      NABT Spring Seminar
         Ritz-Carlton Buckhead, Atlanta, GA
            Contact: http://www.NABT.com/

March 27-31, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Spring Conference
         Four Seasons Las Colinas, Dallas, Texas
            Contact: http://www.turnaround.org/

March 29-31, 2007
   ALI-ABA
      Chapter 11 Business Reorganizations
         Scottsdale, Arizona
            Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/

April 11-15, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      ABI Annual Spring Meeting
         J.W. Marriott, Washington, DC
            Contact: 1-703-739-0800; http://www.abiworld.org/

April 20, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast meeting with Chapter President, Bruce Sim
         Westin Buckhead, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

June 6-9, 2007
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      23rd Annual Bankruptcy & Restructuring Conference
         Westin River North, Chicago, Illinois
            Contact: http://www.airacira.org/

June 14-17, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Michigan
            Contact: 1-703-739-0800; http://www.abiworld.org/

June 28 - July 1, 2007
   NORTON INSTITUTES
      Norton Bankruptcy Litigation Institute
         Jackson Lake Lodge, Jackson Hole, WY
            Contact: http://www2.nortoninstitutes.org/

July 12-15, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Marriott, Newport, RI
            Contact: 1-703-739-0800; http://www.abiworld.org/

October 10-13, 2007
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Orlando, Florida
            Contact: http://www.ncbj.org/

October 16-19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Copley Place, Boston, Massachusetts
            Contact: 312-578-6900; http://www.turnaround.org/

December 6-8, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Westin Mission Hills Resort, Rancho Mirage, California
            Contact: 1-703-739-0800; http://www.abiworld.org/

March 25-29, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Spring Conference
         Ritz Carlton Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

September 24-27, 2008
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Scottsdale, Arizona
            Contact: http://www.ncbj.org/

October 28-31, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Copley Place, Boston, Massachusetts
            Contact: 312-578-6900; http://www.turnaround.org/

October 5-9, 2009
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Desert Ridge, Phoenix, Arizona
            Contact: 312-578-6900; http://www.turnaround.org/

2009 (TBA)
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Las Vegas, Nevada
            Contact: http://www.ncbj.org/

October 4-8, 2010
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         JW Marriott Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

2010 (TBA)
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         New Orleans, Louisiana
            Contact: http://www.ncbj.org/

   BEARD AUDIO CONFERENCES
      Coming Changes in Small Business Bankruptcy
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Distressed Real Estate under BAPCPA
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      High-Yield Opportunities in Distressed Investing
         Audio Conference Recording
            Contact: 240-629-3300;
          http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Fundamentals of Corporate Bankruptcy and Restructuring
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Reverse Mergers - the New IPO?
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Dana's Chapter 11 Filing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Employee Benefits and Executive Compensation
      under the New Code
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/


   BEARD AUDIO CONFERENCES
      Validating Distressed Security Portfolios: Year-End Price
      Validation and Risk Assessment
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Changing Roles & Responsibilities of Creditors' Committees
      Audio Conference Recording
         Contact: 240-629-3300;
         http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Calpine's Chapter 11 Filing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Healthcare Bankruptcy Reforms
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      Changes to Cross-Border Insolvencies
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

   BEARD AUDIO CONFERENCES
      The Emerging Role of Corporate Compliance Panels
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

   BEARD AUDIO CONFERENCES
      Privacy Rights, Protections & Pitfalls in Bankruptcy
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

   BEARD AUDIO CONFERENCES
      High-Yield Opportunities in Distressed Investing
         Audio Conference Recording
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com

The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via e-mail
to conferences@bankrupt.com are encouraged.

                             *********

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, 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.

                    *** End of Transmission ***