TCR_Public/060927.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 27, 2006, Vol. 10, No. 230

                             Headlines

1POINT SOLUTIONS: Involuntary Chapter 11 Case Summary
A & H PETROLEUM: Case Summary & 8 Largest Unsecured Creditors
ADELPHIA COMMS: 12 Creditor Groups Object to Second DS Supplement
ADELPHIA COMMS: Broadcast Music Agrees to License Pact Rejection
AGRICORE UNITED: Moody's Assigns Loss-Given-Default Ratings

AK STEEL: Final Contract Offer Gets "No" Votes from Union Workers
ALLIANCE ONE: Moody's Assigns Loss-Given-Default Rating
ALLIS-CHALMERS: Moody's Assigns Loss-Given-Default Rating
ALON USA: Moody's Assigns Loss-Given-Default Rating
AMERICAN SEAFOODS: Moody's Assigns Loss-Given-Default Ratings

AMES DEP'T: ASM Capital Wants G&A Sales' Admin. Claims Disallowed
AMES DEPARTMENT: Obtains Default Judgment Against G&A Sales
ANCHOR GLASS: Alpha Resolution Trustee Wants 85 Claims Expunged
ANCHOR GLASS: Objects to 47 Various Claims
ARMSTRONG WORLD: Discloses Financial Projections for 2006 and 2007

ARMSTRONG WORLD: Professionals Ask for Payment of Fees, Expenses
ASARCO LLC: Court Approves LMI Settlement Agreement
ASARCO LLC: Willis Gets Paid for Brokerage Services
ASG CONSOLIDATED: Moody's Assigns Loss-Given-Default Ratings
AVIALL INC: Moody's Withdraws Corporate Family Rating's Ba3

BASIC ENERGY: Moody's Assigns Loss-Given-Default Rating
BERRY PLASTICS: Completes Tender Offer for 10.75% Sr. Sub. Notes
BERRY PLASTICS: Apollo and Graham Complete BPC Holding Purchase
BIOVEST INT'L: Equity Deficit Raises to $12.7MM in Third Quarter
BRASKEM SA: Declares Pricing of Tender Offer for 12.50% Notes

BRISTOW GROUP: Moody's Assigns Loss-Given-Default Rating
BXG RECEIVABLE: Moody's Rates $7.4 Mil. Class F Certs. at Ba2
CALUMET LUBRICANTS: Moody's Assigns Loss-Given-Default Rating
CANAL CARTING: Case Summary & 40 Largest Unsecured Creditors
CHIQUITA BRANDS: Moody's Assigns Loss-Given-Default Ratings

CITIZENS FUNDING: S&P Rates Proposed $100 Mil. Securities at BB+
COLLEEN INC: Ch. 11 Hires Larry Strauss as Accountant
COLLEEN INC: Chapter 11 Trustee Hires PENTA as Forensic Accountant
COLLINS & AIKMAN: Moody's Assigns Loss-Given-Default Ratings
COMMUNICATIONS CORPORATION: Taps Ernst & Young as Auditor

COMPUCREDIT ACQUIRED: Moody's Rates $25 Mil. Class B Notes at Ba2
CONEXANT SYSTEMS: Getting $100MM From Acquicor-Jazz Merger
CORD BLOOD: Posts $1.2 Million Net Loss in 2006 Second Quarter
COUDERT BROTHERS: Files for Chapter 11 Protection in S.D.N.Y.
CREDIT SUISSE: Moody's Downgrades Ratings on 7 Certs. to Low-B's

CVS CORPORATION: Moody's Affirms Series A-2 Cert.'s Rating at Ba1
DEL MONTE CORP: Moody's Assigns Loss-Given-Default Ratings
DELPHI CORP: NuTech Wants Trial to Proceed by February
DELPHI CORP: 12,400 UAW Employees to Voluntarily Retire
DELTA AIR: Court Approves IBM Outsourcing Pact

DELTA AIR: Can Walk Away from Aero Newark Sublease Agreement
DENNY'S CORP: Moody's Withdraws B2 Corp. Family Rating
DIXIE GROUP: Moody's Assigns Loss-Given-Default Rating
DOLE FOOD: Moody's Assigns Loss-Given-Default Ratings
EASY GARDENER: Judge Gross Approves Amended Disclosure Statement

EASY GARDENER: Exclusive Solicitation Period Extended to Nov. 29
FAREPORT CAPITAL: Inks Pact with Investor to Acquire 60% of Shares
FEDERAL-M0GUL: Court Extends Lease Decision Period to Dec. 1
FIRST UNION: Moody's Puts Low-B Ratings on Four Cert. Classes
FLYI INC: Various Parties Object to Solicitation Procedures

FLYI INC: Contracts and Leases Rejection is Effective Aug. 31
FOAMEX INTERNATIONAL: Asks Court to Disallow Eleven Amended Claims
FOAMEX INTERNATIONAL: Gets Okay to Assume Amended EDS Contract
FUTRONIX INC: Sibex Buys Bankrupt Assets for $1.38 Million
GB HOLDINGS: Creditors' Panel Submits Fourth Modified Ch. 11 Plan

GENERAL MOTORS: To Fund Post-Retirement Benefits of Delphi Workers
GMAC COMMERCIAL: S&P Raises Class K Certificates' Rating to BB+
GRUPO TMM: Redeems $155,820,539 of Senior Secured Notes Due 2007
GUESS? INC: Enters Into Joint Venture Pact with Mexican Company
HENRY BRADFORD: Case Summary & 11 Largest Unsecured Creditors

HUSKY ENERGY: Opens Ethanol Production Facility in Lloydminster
ICOA INC: June 30 Working Capital Deficit Tops $7.2 Million
INDUSTRIAL ENTERPRISES: Responds to Erroneous Schedule 13D Filing
INLAND FIBER: Taps Perkins Coie to Assist in Oregon Asset Sale
ITEC ENVIRONMENTAL: Hires Rod Rougelot as Chief Executive Officer

INTERFACE INC: Moody's Assigns Loss-Given-Default Ratings
INTERSTATE BAKERIES: Wants to Sell Portland Property for $3.65MM
INTERSTATE BAKERIES: Eyes $2.8 Mil. Wachovia Equipment Purchase
JAMES QUILLEN: Case Summary & 19 Largest Unsecured Creditors
JMR CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors

J.P. MORGAN: Moody's Junks Rating on Class L & M Certs.
LEHMAN BROTHERS: Moody's Lowers Class K Note's Rating to Ba2
LEVITZ HOME: Wants to Reject Lease for Store No. 40203
LIFESTYLE ENT: Case Summary & 27 Largest Unsecured Creditors
MARSH & MCLENNAN: Names M. Michele Burns as Mercer Chairman, CEO

MEDAREX INC: Seeks Default Waiver from 2.25% Sr. Note Holders
MEGA BRANDS: Moody's Assigns Loss-Given-Default Ratings
MERIDIAN AUTOMOTIVE: Disclosure Statement Hearing Set on Oct. 10
MERIDIAN AUTOMOTIVE: Wants Solicitation Procedures Established
MERIDIAN AUTOMOTIVE: Court Okays DIP Financing Amendments

MERRIL LYNCH: Moody's Assigns Ba2 Rating to Class B Certificate
MEYER'S BAKERIES: Court Sets November 6 as Claims Bar Date
METABOLIFE INT'L: PI Claimants Want Stay Lifted to Continue Suit
MILLENNIUM BIOTECH: Has $4.5 Million Equity Deficit at June 30
MULTIPLAN INC: Extends Partnership with Health Net

MULTIPLAN INC: To Acquire Private Healthcare Systems
NATIONSTAR HOME: Moody's Assigns Low-B Ratings on Two Sub. Certs.
NAPIER ENVIRONMENTAL: Collects $410,769 from Warrants Excercise
NORTHWEST AIRLINES: Hires L.E.K. Consulting as Industry Advisor
NORTHWEST AIRLINES: SVP Blames Interest Payment Delays to JPMorgan

OWENS CORNING: Bankruptcy Court Approves Plan of Reorganization
PLY GEM: Alcoa Merger Cues S&P to Put Ratings on Negative Watch
PINNACLE FOODS: Moody's Assigns Loss-Given-Default Ratings
POLY-TECH RADIANT: Files for Relief Under Canadian Bankruptcy Act
POLYMER GROUP: Moody's Assigns Loss-Given-Default Ratings

POLYONE CORPORATION: Fitch Lifts Sr. Unsecured Debts' Rating to B+
PUMPWORKS INC: Involuntary Chapter 11 Case Summary
PURE FISHING: Weak Financial Results Cue S&P's Rating Downgrade
RADNOR HOLDINGS: U.S. Trustee Wants Chapter 11 Trustee Appointed
RAPID LINK: Primary Debt Holders Extend Maturity to November 1

RC2 CORP: Moody's Assigns Loss-Given-Default Ratings
REFCO INC: Ch. 11 Trustee Wants Court Nod on Winchester Settlement
REFCO INC: Inks Settlement Accord with BofA & Prepetition Lenders
RESIDENTIAL ASSET: Moody's Cuts Class M-I-3 Notes' Rating to Caa3
REVLON CONSUMER: S&P Downgrades Corporate Credit Rating to CCC+

ROBERT MULHOLLAND: Voluntary Chapter 11 Case Summary
ROWE COS: Gets AMEX Noncompliance Notice Due to Chapter 11 Filing
SACO I: Moody's Assigns Ba2 Rating to Class B Subordinated Notes
SAINT VINCENTS: Court Approves Asset Sale to St. John's University
SAINT VINCENTS: Taps Caronia Corp as Estimation Consultant

SATELITES MEXICANOS: Judge Drain Approves Solicitation Procedures
SATELITES MEXICANOS: Court Sets Confirmation Hearing on Oct. 26
SPRINGS WINDOW: Moody's Assigns Loss-Given-Default Ratings
SUNNY DELIGHT: Moody's Assigns Loss-Given-Default Ratings
THOMPSON CREEK: S&P Rates Proposed $125 Million Debt at CCC+

THORNBURG MORTGAGE: Moody's Assigns B2 Rating to Class B-5 Notes
TOWER RECORDS: Section 341(a) Meeting Scheduled on Friday
TRW AUTOMOTIVE: Fitch Affirms BB Issuer Default Rating
TUBULAR TECHNOLOGIES: Loses Lease on Lexington, N.C. Facility
UNIFI INC: Moody's Assigns Loss-Given-Default Rating

VARIG S.A.: Appeals Court Allows ANAC to Redistribute Routes
VARIG S.A.: Cuts Fare on Five Local and Two International Flights
VISTEON CORP: Opens $10 Million Technical Center in India
WAAG PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
WARNER CHILCOTT: Moody's Assigns Loss-Given-Default Rating

WATSON PHARMACEUTICALS: Moody's Assigns Loss-Given-Default Rating
WELLMAN INC: Consolidating all Fiber Production in Palmetto Plant
WINDSOR QUALITY: Moody's Assigns Loss-Given-Default Ratings
WINN-DIXIE: Court Okays Assumption of 16 Store Leases
WINN-DIXIE: Ct. OKs Rejection of Store # 1059 Lease as of Aug. 31

* A. Kintzinger Joins Public Finance Practice at Hunton & Williams
* NatCity Investments buys SSG Capital Advisors

* Upcoming Meetings, Conferences and Seminars

                             *********

1POINT SOLUTIONS: Involuntary Chapter 11 Case Summary
-----------------------------------------------------
Alleged Debtor: 1Point Solutions, LLC
                101 South Main Street
                Dickson, TN 37055
                Tel: (615) 242-1900

Case Number: 06-05400

Involuntary Petition Date: September 26, 2006

Chapter: 11

Court: Middle District of Tennessee (Nashville)

Judge: Keith M. Lundin

Petitioners' Counsel: Ronald G. Steen, Jr., Esq.
                      Stites & Harbison PLLC
                      424 Church Street, Suite 1800
                      Nashville, TN 37219
                      Tel: (615) 782-2280
                      Fax: (615) 742-7238

                             -- and --

                      John J. Griffin, Jr., Esq.
                      Kay Griffin Enkema & Brothers PLLC
                      222 2nd Avenue North, Suite 340M
                      Nashville, TN 37201
                      Tel: (615) 742-4800

                             -- and --

                      John Charles Tishler, Esq.
                      Waller Lansden Dortch & Davis PLLC
                      511 Union Street, Suite 2700
                      Nashville, TN 37219
                      Tel: (615) 850-8756
                      Fax: (615) 244-6804

                             -- and --

                      Sam J. Mcallester, III, Esq.
                      Bone Mcallester Norton, PLLC
                      511 Union Street, Suite 1600
                      Nashville, TN 37219
                      Tel: (615) 238-6320
                      Fax: (615) 238-6301

   Petitioners                   Nature of Claim     Claim Amount
   -----------                   ---------------     ------------
Beck/Arnley Worldparts Corp.     Breach of ERISA       $6,621,176
2375 Midway Lane                 Fiduciary Duties;
Smyrna, TN 37167                 Misappropriation of
                                 Plan assets

Colbert & Winstead, P.C.         Breach of ERISA         $547,272
1812 Broadway                    Fiduciary Duties;
Nashville, TN 37203              Misappropriation of
                                 Plan assets

Reliance Worldwide Corp          Breach of ERISA         $650,000
dba Cash Acme                    Fiduciary Duties;
c/o Waller Lansden Dortch and    Misappropriation of
Davis, LLP                       Plan assets
511 Union Street, 27th Floor
Nashville, TN 37219
Tel: (615) 244-6380

Mastrapasqua Asset Management    Breach of ERISA         $796,989
814 Church Street, Suite 600     Fiduciary Duties;
Nashville, TN 37203              Misappropriation of
                                 Plan assets


A & H PETROLEUM: Case Summary & 8 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: A & H Petroleum, Inc.
        dba Beverage Warehouse
        2500 Green Oaks Blvd.
        Arlington, TX 76018

Bankruptcy Case No.: 06-43193

Type of Business: The Debtor operates beverage stores.

Chapter 11 Petition Date: September 26, 2006

Court: Northern District of Texas (Ft. Worth)

Judge: Russell F. Nelms

Debtor's Counsel: Eric A. Liepins, Esq.
                  Eric A. Liepins, P.C.
                  12770 Coit Rd., Suite 1100
                  Dallas, TX 75251
                  Tel: (972) 991-5591
                  Fax: (972) 991-5788

Total Assets: $937,500

Total Debts:  $2,325,000

Debtor's 8 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Zion National Bank            2500 Green Oaks         $1,200,000
P.O. Box 26304                Blvd.                    ($850,000
Salt Lake City, UT 84126                                secured)

Amresco SBA Holdings          2500 Green Oaks         $1,000,000
c/o Hayne Rake & Repass       Blvd.                    ($850,000
14651 Dallas Parkways                                   secured)
Suite 136                                            ($1,200,000
Dallas, TX 75254                                     senior lien)

EKI'S #3 Corporation          2500 Green Oaks           $100,000
4630 Essex Court              Blvd.                    ($850,000
Grand Prairie, TX 75052                                 secured)
                                                     ($2,200,000
                                                    senior lien)

Proton PRC                                               $25,000
4100 Spring Valley
Suite 515
Dallas, TX 75244

Arlington ISD                                            Unknown
c/o Linebarger Heard
2323 Bryan Street
Suite 1600
Dallas, TX 75201

City of Arlington                                        Unknown
c/o Linebarger Heard
2323 bryan Street
Suite 1600
Dallas, TX 75201

Internal Revenue Service                                 Unknown
1100 Commerce Street
Mail Code 5027DAL
Dallas, TX 75242

Tarrant County                                           Unknown
c/o Linebarger Heard
2323 Bryan Street
Suite 1600
Dallas, TX 75201


ADELPHIA COMMS: 12 Creditor Groups Object to Second DS Supplement
-----------------------------------------------------------------
Adelphia Communications Corporation and its debtor-affiliates'
Second Disclosure Statement Supplement, explaining their Fifth
Amended Plan of Reorganization, was objected to by twelve groups
of creditors and other parties-in-interest:

     1. the Olympus Parent Noteholders:

        -- Silver Point Capital Fund, L.P.,
        -- Silver Point Capital Offshore Fund, Ltd.,
        -- Redwood Master Fund, Ltd., and
        -- Goldman Sachs & Co.;

     2. certain administrative agents:

        -- Bank of America, N.A., as the Century Cable
           Administrative Agent;

        -- Bank of Montreal, as the Olympus Administrative Agent;
           and

        -- Wachovia Bank National Association, as the UCA
           Administrative Agent;

     3. the Ad Hoc Committee of Certain Non-Agent Lenders;

     4. the Official Committee of Equity Security Holders of
        Adelphia Communications Corporation;

     5. Calyon New York Branch;

     6. Bank of New York, as lender under each of the
        Credit Agreement prior to Debtor's filing for chapter 11
        protection: Century Credit Agreement, the FrontierVision
        Credit Agreement, the Olympus Credit Agreement and the UCA
        Credit Agreement;

     7. Class action plaintiffs in a lawsuit pending before the
        United States District Court for the Southern District of
        New York captioned In re Adelphia Communications Corp.
        Securities & Deriv. Litigation, 03 MD 1529 (LMM);

     8. the Ad Hoc Committee of Non-Agent Secured Lenders;

     9. the holders of the Term Note issued by Ft. Myers
        Acquisition Limited Partnership in the outstanding
        principal amount of $108,000,000 and secured by an
        interest in Olympus Communications, L.P. -- the Ft. Myers
        Noteholders;

    10. ACC Senior Noteholders, namely:

        -- Aurelius Capital Management, LP,
        -- Catalyst Investment Management Co., LLC,
        -- Drawbridge Global Macro Advisors LLC,
        -- Drawbridge Special Opportunities Advisors LLC,
        -- Elliott Associates, LP,
        -- Farallon Capital Management LLC,
        -- Noonday Asset Management LP, and
        -- Perry Capital LLC;

    11. Wilmington Trust Company; and

    12. Diana G. Adams, the United States Trustee for Region 2.

Generally, the parties complain that the Second Disclosure
Statement Supplement fails to provide "adequate information"
required under Section 1125 of the Bankruptcy Code.

The parties also assert that the Second Supplement relates to an
unconfirmable plan because the Fifth Amended Plan violates the
"best interests" test, thus the Supplement should not be approved.

Representing the Non-Agent Committee, Richard L. Wynne, Esq., at
Kirkland & Ellis LLP, in New York, notes that the Plan Proponents
themselves admit that the Plan as currently filed is non-
confirmable because the ACOM Debtors have insufficient funds to
consummate the Plan.  He contends that it begs the question of why
the plan process should proceed in the face of substantial
litigation over a Plan that is insufficiently funded and
ultimately cannot be confirmed or consummated.

Representing Calyon Bank, Andrew P. Brozman, Esq., at Clifford
Chance US LLP, in New York, argues that there are two fundamental
failures in the Second Supplement:

    (1) The liquidation analysis is predicated only upon a
        hypothetical liquidation of the Debtors as an aggregate
        whole, bereft of any information as to a Debtor by Debtor
        analysis or even an "ACC Debtors" by "Subsidiary Debtors"
        analysis.  The analysis, consequently, is flawed as it is
        useless since no creditor of any particular Debtor can
        discern whether the Plan for that Debtor is preferable to
        a Chapter 7 liquidation; and

    (2) The Plan operates for voting and confirmation purposes on
        the fiction of creditor classes transcending individual
        Debtor boundaries.  At the same time however, the Plan
        contemplates confirmation on a Debtor by Debtor basis.
        The Second Supplement provides no information as to the
        financial attributes of each Debtor in relation to what
        creditors in what class assert how much in claims against
        each Debtor.  Accordingly, there exists no information
        whether any creditor may stand, or how it may
        intelligently exercise voting rights, in relation to the
        confirmation process of any Debtor.

Representing the Olympus Parent Noteholders, Robert J. Rosenberg,
Esq., at Latham & Watkins LLP, in New York, asserts that the
Debtors and the Official Committee of Unsecured Creditors should
inform them and the Court whether a legal or economic basis exists
for the Olympus Parent Noteholders' recoveries to be dramatically
reduced as proposed in the Fifth Amended Plan.

The Ft. Myers Noteholders note that:

     -- no indication is given to the basis for a "give up" of
        $10,000,000;

     -- no discussion is provided as to the fact that they, unlike
        other noteholders and parties-in-interest, are secured
        creditors with substantial rights not recognized in the
        Plan; and

     -- no disclosure as to why the treatment for the Ft. Myers
        Noteholders differs, in materially adverse ways, from the
        treatment provided to other noteholders, who do not have
        the benefit of liens and other structural protections.

The Equity Committee contends that the Supplement contains
inadequate disclosure concerning the Contingent Value Vehicle.  It
fails to disclose that the Equity Committee's claims against
numerous defendant banks cannot be transferred to the CVV absent
the Equity Committee's consent, Peter D. Morgenstern, Esq., at
Morgenstern Jacobs & Blue, LLC, says.

The Administrative Agents' objections to the Disclosure Statement
based on inadequate information relate to:

    (a) exclusivity and the Court's prior Government Settlement
        Order that prohibit the Debtors from filing a plan of
        reorganization that withholds payment of principal and
        interest to the Bank Lenders;

    (b) partial payment of the Bank Lenders' claims;

    (c) treatment of third-party claims and rights of non-debtors;

    (d) voting-related issues; and

    (e) certain other significant provisions.

Martin J. Bienenstock, Esq., at Weil, Gotshal & Manges LLP, in
New York, representing the ACC Senior Noteholders, argues that,
among others, the Second Statement and the Plan are premature
because:

     -- the exclusivity has not been terminated;

     -- the alleged $1,080,000,000 to be "transferred" for the
        benefit of the ACC Creditors is a phony foundation of the
        Plan; and

     -- the Plan procedures order is controlling.

Representing the Ft. Myers Noteholders, Lee S. Attanasio, Esq., at
Sidley Austin LLP, in New York, contends that the Second
Supplement fails to disclose the means by which the Plan
Proponents intend to confirm the Plan.

The Court has authorized the ACC Senior Noteholders and the Ft.
Myers Noteholders to file their objections under seal.  Judge
Gerber finds that the Disclosure Statement Objections contain
certain sensitive and confidential information related to
discussions in the Monitor process and settlement discussions that
have not been made public in accordance with Rule 408 of the
Federal Rules of Evidence.

Representing the Class Action Plaintiffs, John H. Drucker, Esq.,
at Cole, Schotz, Meisel, Forman & Leonard, P.A., in New York,
argues that the Second Supplement should not be approved unless
and until, among others:

     -- the Plan Proponents provide additional and appropriate
        disclosure with regard to the intent and scope of the
        exculpation and third party release provisions contained
        in the Plan.  The Second Supplement only repeats verbatim
        the language in the Plan and provides no additional
        disclosure necessary for creditors to be able to make an
        informed decision to reject or accept the Plan;

     -- there is additional and appropriate disclosure, so that
        creditors may determine whether in fact the "exculpation
        provisions" of the Plan are disguised third party
        releases, and whether those exculpation provisions are
        intended to provide for releases on account of any acts or
        omissions prior to the Debtor's filing for chapter 11
        protection;

     -- the Plan Proponents correct the ambiguous and inconsistent
        language of the Plan regarding exclusions from the
        otherwise proposed third party releases;

     -- there is additional and appropriate disclosure with regard
        to the Plan section relating to the Government Settlement.
        No explanation has been provided for what is implied by
        that Section, stating that if the Plan is confirmed, the
        Court is adding its authority and approval to the efforts
        of third parties to redirect the distribution of the
        Restitution Fund under the Government Settlement to
        non-victims;

     -- with respect to the distribution and so-called "death
        trap" provisions of the Plan, the Plan Proponents provide
        additional and appropriate disclosure as to why:

         * the holders of Claims in the Class of ACC Existing
           Securities Law Claims, Class ACC-7, are identified as
           receiving no distribution on account of their Claims,
           rather than identified as receiving that distribution
           to which they would be entitled in accordance with the
           order of priority provided under the Bankruptcy Code;
           and

         * it is appropriate to provide for no distribution to the
           Class ACC-7 in the event the Class rejects the Plan,
           but provide a distribution of a subordinated interest
           in the CVV in the event the class votes in favor of the
           Plan.  That subordinated interest in the CVV is no more
           than what the Class would be entitled to from a
           distribution of the assets of the estate in accordance
           with the priorities provided for under the Bankruptcy
           Code;

     -- there is additional and appropriate disclosure as to why,
        under the Plan, in what is a liquidating Chapter 11 plan,
        the ACOM Debtors should be entitled to a "discharge," in
        apparent contravention of Section 1141(d)(3)(B), which
        prohibits the discharge of a debtor in the circumstances
        where a debtor does not engage in business after
        consummation of the Plan;

     -- there is additional disclosure regarding the basis for the
        "deemed consent" contained in Plan; and

     -- the Court denies the Plan Proponents' request for a
        "presumption that, in the event there is a class of
        creditors for which no votes are cast accepting or
        rejecting the Plan, [that] class [will] be deemed to have
        accepted the Plan."

Representing the U.S. Trustee, Tracy Hope Davis, Esq., in New
York, asserts that the Disclosure Statement should provide
sufficient information regarding the amount of administrative
claims and expenses incurred to date by the Settlement Party Fee
Claims and the Indenture Trustees' professionals, which are to be
paid in accordance with the Plan.  Due to the complex debt
structure, it is anticipated that the estimates for those claims
will be substantial, she contends.

                       JPMorgan's Statement

JPMorgan Chase Bank, N.A., administrative agent under the Second
Amended And Restated Credit Agreement dated December 19, 1997,
informs the Court that it is currently reviewing the Plan with the
ACOM Debtors and the Creditors Committee to ensure it accurately
reflects the agreement embodied in the FrontierVision Stipulation
dated July 27, 2006, providing terms and conditions for withdrawal
of JPMorgan's appeal from Sale Order.

              About Adelphia Communications Corp.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-
10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ADELPHIA COMMS: Broadcast Music Agrees to License Pact Rejection
----------------------------------------------------------------
Adelphia Communications Corporation and Broadcast Music, Inc., in
a stipulation, agreed that:

    (1) BMI's objection to the Debtor's notice to reject its Cable
        Systems Local Origination Music License Agreement, as
        amended, dated Jan. 1, 2000, with BMI is withdrawn with
        prejudice;

    (2) The Debtor rejected the License Agreement effective
        July 31, 2006; and

    (3) By Sept. 10, 2006, or ten days after Court approval of
        the Stipulation, whichever date is later, the Debtor will
        report and pay any and all license fees due pursuant to
        the terms of the Agreement for the period from
        Jan. 1, 2006, through and including July 31, 2006.

              About Adelphia Communications Corp.

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

Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of the
Rigas family.  In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision, LLC.  The RME Debtors filed for chapter 11 protection
on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-
10642).  Their cases are jointly administered under Adelphia
Communications and its debtor-affiliates chapter 11 cases.
(Adelphia Bankruptcy News, Issue Nos. 148; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


AGRICORE UNITED: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its Ba3 Corporate
Family Rating for Agricore United Ltd.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

   Issuer: Agricore United Ltd.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility           Ba2      Ba2     LGD3        40%

Sr. Sec. Term Loan B
Due 2013                  Ba3      Ba2     LGD3        40%

   Issuer: AU Holdings Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Term Loan B      Ba3      Ba2     LGD3        40%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Headquartered in Winnipeg, Manitoba, Agricore United Limited (TSX:
AU.LV, TSE: AU) -- http://www.agricoreunited.com/-- is an agri-
business with extensive operations and distribution capabilities
across western Canada.  The Company's operations are diversified
into sales of crop inputs and services, grain merchandising,
livestock production services and financial services.


AK STEEL: Final Contract Offer Gets "No" Votes from Union Workers
-----------------------------------------------------------------
AK Steel Corp.'s locked-out union workers has rejected the
Company's final contract offer, the Associated Press reports.

The five-year contract offer included wage increases for most
workers and job security provisions, and would have allowed
workers to keep a fixed pension through the Machinists' multi-
employer plan, the union said in the report.

The contract also would have required workers to begin paying a
share of their health care coverage, and would have had fewer job
classifications, giving managers more flexibility in assigning
work, the union added.

Machinists union local president Brian Daley told the Associated
Press that union members distrusted much of the proposal, thinking
that their jobs would not be secure, and were opposed to terms
that would have increased the Company's ability to outsource work.

Mr. Daley further stated that the union also opposed proposed
back-to-work conditions that included working with replacements
the Company has used to keep the mill running.

"It's a matter of members weighing their personal financial
condition or taking the risk of a proposal fraught with
uncertainties," Mr. Daley said, as quoted in the report.

Company spokesman Alan McCoy described the offer as fair and
competitive, the source said.  The Company has insisted that it
needs to cut labor costs to remain competitive in an increasingly
global industry in which it is a relatively small player.

"We want is to get a competitive labor agreement," Mr. McCoy
explained.  "Unfortunately for them, the lockout will continue and
we'll continue to operate the plant."

Since the lockout began, the union work force has shrunk, and
according to the union members, hundreds of workers have rushed to
retire this month and the work force could be down to 1,800 union
workers.

Middletown, OH-based AK Steel Corp. -- http://www.aksteel.com/--  
produces flat-rolled carbon, stainless and electrical steels, as
well as tubular steel products for the automotive, appliance,
construction and manufacturing markets.

                          *     *     *

As reported in the Troubled Company Reporter on Feb. 21, 2005,
Moody's Investors Service upgraded AK Steel Corporation's debt
ratings (Senior Implied to B1 from B2) and affirmed the company's
SGL-1 rating.  The rating outlook was stable.

As reported in the Troubled Company Reporter on July 23, 2004,
Standard & Poor's Ratings Services revised its outlook on
integrated steel producer AK Steel Corp. to stable from negative.
Standard & Poor's also affirmed its 'B+' corporate credit and
senior unsecured debt ratings on the company and its parent, AK
Steel Holding Corp.


ALLIANCE ONE: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B2 Corporate
Family Rating for Alliance One International, Inc., and upgraded
its B2 rating on the Company's $300 million senior secured
revolver to B1.  In addition, Moody's assigned an LGD3 rating to
notes, suggesting noteholders will experience a 37% loss in the
event of a default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Based in Morrisville, North Carolina, Alliance One International,
Inc. (NYSE:AOI) -- http://www.aointl.com/-- is a leaf tobacco
merchant.


ALLIS-CHALMERS: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its B3 Corporate
Family Rating for Allis-Chalmers Energy Inc.

Moody's also affirmed its B3 rating on the company's 9% Senior
Unsecured Guaranteed Global Notes Due 2014, and assigned the
debentures an LGD4 rating suggesting a projected loss-given
default of 54%.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Houston, Texas, Allis-Chalmers Energy Inc. --
http://www.alchenergy.com/-- provides oilfield services and
equipment to the oil and gas exploration and development companies
primarily in Texas, Louisiana, New Mexico, Colorado, and Oklahoma;
offshore in the United States Gulf of Mexico; and offshore and
onshore in Mexico.  The company offers directional drilling,
compressed air drilling, casing and tubing, rental tools, and
production services.


ALON USA: Moody's Assigns Loss-Given-Default Rating
---------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency raised its Corporate Family
Rating for Alon USA Energy Inc. from B2 to B3.  Additionally,
Moody's raised its rating on the company's Senior Secured Term
Loan Due 2013 from B2 to B1.  The loan was assigned an LGD2 rating
suggesting lenders suggesting lenders will experience a 29%
loss in the event of a default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Dallas, TX-based Alon USA Energy Inc. -- http://www.alonusa.com/
-- together with its subsidiaries, engages in refining and
marketing petroleum products primarily in the southwestern and
south central regions of the United States.  The company is a
subsidiary of Alon Israel Oil Company, Ltd.


AMERICAN SEAFOODS: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for American Seafoods Group LLC.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Revolving Credit
Facility Due 2011         B1       Ba3     LGD3       39%

Gtd. Sr. Sec.
Term Loan A Due 2012      B1       Ba3     LGD3       39%

Gtd. Sr. Sec.
Term Loan B Due 2013      B1       Ba3     LGD3       39%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

American Seafoods Group LLC -- http://www.americanseafoods.com/--  
harvests and processes a variety of fish species aboard its
catcher-processor vessels, its freezer-longliner vessels, and at
its land-based processing facilities.  The Company markets its
products to a diverse group of customers in North America, Asia,
and Europe.  In the U.S., American Seafoods is the largest
harvester and at-sea processor of pollock and hake and the largest
processor of catfish.  The Company also harvests and processes
cod, scallops, and yellowfin sole.  The Company maintains an
international marketing network through its U.S., Japan, and
European sales offices.


AMES DEP'T: ASM Capital Wants G&A Sales' Admin. Claims Disallowed
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
denied ASM Capital, LP's motion for leave to appeal in Ames
Department Stores and its debtor-affiliates' cases, the Troubled
Company Reporter disclosed.

ASM now asks the Court to enter a supplemental order:

    -- directing the Debtors to immediately pay ASM's reclamation
       claim against the Debtors' estate for $33,292; and

    -- disallowing G&A Sales' administrative claims against the
       Debtors, which claims are currently held by ASM.

Martin P. Ochs, Esq., at Ochs & Goldberg, LLP, in New York,
asserts that since the Bankruptcy Court allowed the Reclamation
Claim pursuant to an order dated June 13, 2002, the Debtors may
not attack the Reclamation Claim on the basis of Section 502(d)
of the Bankruptcy Code.

In light of the fact that the G&A Adversary Proceeding has now
been resolved and the liability of G&A Sales determined, ASM
wants the Court to disallow G&A Sales' administrative claims
pursuant to Section 502(d).

Mr. Ochs adds that the Supplemental Order, if entered, will be a
final order, as the liability of G&A has been established.
Moreover, ASM will then be in a position to pursue its appeal
regarding the issue of Section 502(d)'s applicability to the
administration claims, Mr. Ochs says.

Ames Department Stores filed for chapter 11 protection on
Aug. 20, 2001 (Bankr. S.D.N.Y. Case No. 01-42217).  Albert
Togut, Esq., Frank A. Oswald, Esq. at Togut, Segal & Segal LLP
and Martin J. Bienenstock, Esq., and Warren T. Buhle, Esq., at
Weil, Gotshal & Manges LLP represent the Debtors in their
restructuring efforts.  When the Company filed for protection
from their creditors, they listed $1,901,573,000 in assets and
$1,558,410,000 in liabilities.  (AMES Bankruptcy News, Issue No.
84; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


AMES DEPARTMENT: Obtains Default Judgment Against G&A Sales
-----------------------------------------------------------
Ames Merchandising Corporation obtained a default judgment against
G&A Sales, Inc., from the U.S. Bankruptcy Court for the Southern
District of New York.

During the 90-day period before the Debtor filed for bankruptcy,
Ames Merchandising made certain transfers to, and for the benefit
of, G&A.  Barry S. Gold, Esq., at Weil, Gotshal & Manges LLP, in
New York, informed the Court that the Avoidable Transfers:

    * were on account of antecedent debts owed by Ames
      Merchandising to G&A before the transfers were made;

    * were made while Ames Merchandising was insolvent; and

    * enabled G&A to, among others, recover more than it would
      have received if the Avoidable Transfers had not been made.

The Court finds that G&A is in default for failing to plead or
otherwise defend in the adversary proceeding.

Judge Gerber, hence, enters judgment against G&A in the principal
sum of $825,137, plus interest at the rate fixed pursuant to
Section 1961 of the Judiciary Procedures Code, from July 3, 2003,
until the date that the Order and Judgment of Default is
satisfied.

Ames Department Stores filed for chapter 11 protection on
Aug. 20, 2001 (Bankr. S.D.N.Y. Case No. 01-42217).  Albert
Togut, Esq., Frank A. Oswald, Esq. at Togut, Segal & Segal LLP
and Martin J. Bienenstock, Esq., and Warren T. Buhle, Esq., at
Weil, Gotshal & Manges LLP represent the Debtors in their
restructuring efforts.  When the Company filed for protection
from their creditors, they listed $1,901,573,000 in assets and
$1,558,410,000 in liabilities.  (AMES Bankruptcy News, Issue No.
84; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


ANCHOR GLASS: Alpha Resolution Trustee Wants 85 Claims Expunged
---------------------------------------------------------------
The Alpha Resolution Trustee asks the U.S. Bankruptcy Court for
the Middle District of Florida to expunge, disallow, reclassify or
modify 85 Claims filed against Anchor Glass Container Corporation.

During the period August 18 to 31, 2006, the Alpha Resolution
Trustee disputed 37 claims filed against Anchor Glass Container
Corporation by these claimants:

      Claimant                               Claim No.
      --------                               ---------
      Acme Equipment Sales                      856.0
      Acme Janitor & Chemical Supply            294.1
      Air Compressor Supply, Inc.               222.1
      Allegheny Power                           684.0
      American Spotting Co.                    1239.0
      Aon Consulting                            122.0
      Baarts Trucking, Inc.                    1280.0
      Bass Custom Landscapes                   1483.0
      Baylor Trucking, Inc.                     673.0
      Benner Industrial                         739.0
      Benner Mechanical & Electrical            770.0
      Besser Lithibar                           189.0
      Bett A. Way                               593.0
      Binder Equipment Rental                   622.0
      Bond Transfer Co., Inc.                   871.0
      Brahm Trucking Service, Inc.             1279.0
      Brehom Compressor                         129.0
      Bunn Packaging                           1038.0
      CAP Glass, Inc.                           997.0
      Eco-Clean Corp                            476.0
      Eco-Clean Corp                            912.0
      Eco-Clean of Illinois                     912.1
      Frank W. Winne & Son, Inc.               1440.0
      Ferguson Enterprises, Inc.                169.1
      Hacker, Johnson & Smith, P.A.              18.1
      Hartness International, Inc.               40.0
      James & Kimberly Quirk                   1576.0
      Kevin R. Heinbaugh                       1533.0
      Lidestri Foods, Inc.                      838.0
      Lidestri Foods, Inc.                      849.0
      Neumann Trucking                          205.1
      Richard L. Showman                       1407.0
      Scarlett Facilities Maintenance           203.0
      Scarlett Facilities Maintenance           544.0
      Scarlett Facilities Maintenance          1484.0
      Union Pacific Railroad Company            915.2
      Wells Fargo Financial Leasing, Inc.       624.0

The Alpha Trustee also objected to 48 claims, asserting different
statuses and claim amounts, filed by these claimants:

      Claimant                               Claim No.
      --------                               ---------
      Arkema, Inc.                             1169.0
      Arkema, Inc.                             1169.1
      ATS, Inc.                                 514.0
      ATS, Inc.                                 514.1
      Becker City Sanitation                    562.0
      Becker City Sanitation                    562.1
      Buske Lines, Inc.                        1311.0
      Buske Lines, Inc.                        1311.1
      Buske Lines, Inc.                        1311.2
      Dub Wilemon                               526.0
      Dub Wilemon                               526.1
      Fayette County Recycling                  626.0
      Fayette County Recycling                  626.1
      Gerald B. Collins                         569.0
      Gerald B. Collins                         569.1
      Ira and Linda Berry                       735.0
      Ira and Linda Berry                       735.1
      James & Dorothy Carpenter                 906.0
      James & Dorothy Carpenter                 906.1
      James & Dorothy Carpenter                 906.2
      James & Dorothy Carpenter                 906.3
      Mary Hollen                               457.0
      Mary Hollen                               457.1
      Millis Transfer, Inc.                      91.0
      Millis Transfer, Inc.                      91.1
      Northeast Utilities                        65.0
      Northeast Utilities                        65.1
      Onsite Medical Services                   230.0
      Onsite Medical Services                   230
      Reflective Recycling of Tulsa             664.0
      Reflective Recycling of Tulsa             664.1
      Rist Transport, Ltd.                       83.0
      Rist Transport, Ltd.                       83.1
      SKJ Facilities Management                 762.0
      SKJ Facilities Management                 762.1
      SKJ Facilities Management                 762.2
      Snapple Beverage Group                   1189.0
      Snapple Beverage Group                   1189.1
      Snapple Beverage Group                   1189.2
      Snapple Beverage Group                   1189.4
      Somec Corp.                               120
      Somec Corp.                               120.0
      Tradewinds Transit, Inc.                  646.0
      Tradewinds Transit, Inc.                  646.1
      Triple Crown Services                     821.0
      Triple Crown Services                     821.1
      Wenger Truck Line, Inc.                   777.0
      Wenger Truck Line, Inc.                   777.1

Most of the Claims arise from Anchor Glass' retirement benefit
plans, employees' severance agreements, and prepetition goods,
services, leases and insurance coverages.

The Alpha Trustee contends that the Claims should be disallowed,
expunged, reclassified or modified for one or more of these
reasons:

   (a) The retirement benefit plans were not affected by the
       Second Amended Plan of Reorganization;

   (b) The employees' severance agreements were either rejected
       before the Petition Date or were paid during the
       bankruptcy case;

   (c) The Utilities Claims were paid during the bankruptcy case
       or in accordance with the Second Amended Plan;

   (d) The Debtor's books and records do not show that any
       amounts are due and owing to the Claimants;

   (e) The Claims do not provide sufficient evidence to support
       the asserted Claim Amounts;

   (f) The Claims are duplicative to other claims;

   (g) The Claims are superseded by other claims; and

   (h) The Claims were filed after the Bar Date.

Anchor Glass has assumed its supply agreement with Lidestri and
its executory contract with Arkema, Edward J. Peterson, Esq., at
Stichter, Riedel, Blain & Prosser, P.A., in Tampa, Florida,
clarifies.  The Debtor has cured all defaults owing under the
agreements.

Thus, Mr. Peterson contends, Lidestri's and Arkema's Claims
should be expunged:

      Claimant          Claim No.    Claim Amount
      --------          ---------    ------------
      Arkema              1169          $91,683
      Arkema              1169.1        130,050
      Lidestri Foods       838          653,883
      Lidestri Foods       849.0        653,883

The Alpha Trustee also asks the Court to reduce the claims filed
by Allegheny Power and Baarts Trucking to the amounts reflected
in the Debtor's books and records:

                                                   Reduced
   Claimant          Claim No.    Claim Amount   Claim Amount
   --------          ---------    ------------   ------------
   Allegheny Power      684          $91,091        $68,145
   Baarts Trucking     1280           62,180         61,053

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


ANCHOR GLASS: Objects to 47 Various Claims
------------------------------------------
For the period Aug. 21 to 31, 2006, Reorganized Anchor Glass
Container Corporation asks the U.S. Bankruptcy Court for the
Middle District of Florida to expunge, modify or reclassify 47
claims filed by these claimants:

      Claimant                               Claim No.
      --------                               ---------
      Arnot Medical Services, P.C.              882
      Arnot Medical Services, P.C.              882.1
      Barbara J. Huey                          1010
      Carr Lane                                 348
      Charles Decker                            620
      Charles Decker                            620.1
      Dennis A. Persons                         729
      Dennis A. Persons                         729.1
      Depository Trust Company JP              1500
      Depository Trust Company RG              1492
      Depository Trust Company RM              1499
      Depository Trust Company RW              1443
      Depository Trust Company SW              1442
      Depository Trust Company WC              1445
      Dresser Ind.-Mooney Controls              266
      Gary R. Shoemaker                        1323
      Gary R. Shoemaker                        1323.1
      Internal Revenue Service                  699
      Internal Revenue Service                  699.1
      Josephine Simpson                        1206
      Kessa A. Smith                             56
      Lonnie M. Mitchell                       1024
      Mark Braddock                            1090
      Mark Braddock                            1090.1
      Michael J. McCartney, III                 712
      Minarik Electric Co.                      267
      Mississippi State Tax Commission          744
      Mississippi State Tax Commission          769
      Mississippi State Tax Commission          769.1
      Mississippi State Tax Commission          769.3
      Mississippi State Tax Commission          769.4
      Mississippi State Tax Commission          769.5
      Morris Pamepinto                         1107
      Murray County                             598
      Murray County                             598.1
      Ohio Bureau of Worker's Compensation      709
      Ohio Bureau of Worker's Compensation      940
      Ohio Department of Taxation               870
      Ohio Department of Taxation               870.1
      Raymond Cox                               281
      Raymond Cox                               373
      Raymond Cox                               373.1
      Raymond Cox                               560.0
      Raymond Cox                               560.1
      Sowers Dia-Met                             13
      Sowers Dia-Met                             13.1
      Space Group, Inc.                         477

Several of the Claimants filed multiple claims that assert
different statuses and claim amounts.

Most of the Claims arise from Anchor Glass' retirement benefit
plans, employees' severance agreements, and prepetition goods,
services, leases and insurance coverages.

Anchor Glass asserts that the Claims should be disallowed,
expunged, reclassified or modified for one or more of these
reasons:

   (a) The retirement benefit plans were not affected by the
       Second Amended Plan of Reorganization;

   (b) The employees' severance agreements were either rejected
       before the Petition Date or were paid during the
       bankruptcy case;

   (c) The Utilities Claims were paid during the bankruptcy case
       or in accordance with the Second Amended Plan;

   (d) Anchor Glass' books and records do not show that any
       amounts are due and owing to the Claimants;

   (e) The Claims do not provide sufficient evidence to support
       the asserted Claim Amounts;

   (f) The Claims are duplicative to other claims;

   (g) The Claims are superseded by other claims; and

   (h) The Claims were filed after the Bar Date.

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


ARMSTRONG WORLD: Discloses Financial Projections for 2006 and 2007
------------------------------------------------------------------
Armstrong World Industries, Inc., disclosed financial projections
for 2006 and 2007, through a regulatory filing with the Securities
and Exchange Commission.

Walter T. Gangl, the Debtor's deputy general counsel and assistant
secretary, relates that in May 2006, certain holders of unsecured
creditor claims against the Debtor sought to pursue negotiations
with other creditors with the objective of obtaining a consensual
resolution of the Debtor's Chapter 11 case.

To facilitate the negotiations, the Debtor provided the claim
holders pursuant to confidentiality agreements certain summary
projected financial information concerning the Debtor's
performance in 2006 and 2007, and a reconciliation of the
projected Adjusted EBITDA to the projected Net Operating Income
for both years.

The Claim Holders, however, were "restricted" from entering into
transactions involving securities of the Debtor or its affiliates,
Mr. Gangl notes.  The Debtor agreed to make the information public
on its emergence from Chapter 11.

The Holders have asked the Debtor to make the financial
information public to end the restrictions on their ability to
trade in the securities.  Given the recent confirmation of its
Chapter 11 Plan, the Debtor agreed and delivered to the SEC a copy
of the projected financial information as made available to the
Holders.

                   Armstrong World Industries, Inc.
                   Summary of Financial Projections

                                           2006            2007
                                           ----            ----
   Net Sales                     $3,689,700,000  $3,879,500,000

   Gross Profit                     831,600,000     919,400,000
      % of Sales                           22.5%           23.7%

   SG&A Expense                     635,200,000     653,800,000
      % of Sales                           17.2%           16.9%

   EBIT                             228,500,000     299,500,000
      % Margin                              6.2%            7.7%

   Adjusted EBITDA                  367,000,000     411,000,000
      % Margin                              9.9%           10.6%

   Capital Expenditures             134,300,000     134,500,000
      % of Sales                            3.6%            3.5%


   POTENTIAL EBITDA ADJUSTMENTS:

   LTIP                             $17,100,000     $17,500,000
   Retention                          3,700,000       3,700,000
   Pension Credit                   (37,800,000)    (49,000,000)
   Gain on Sale of Assets           (15,000,000)              0
   Restructuring Charges             13,700,000       4,700,000
   Other Charges                     21,000,000               0
                                   ------------     -----------
   TOTAL ADJUSTMENTS                 $2,700,000    ($23,000,000)

Mr. Gangl says EBIT is Net Operating Income as reported.  Adjusted
EBITDA includes adjustments for gain on sale of assets, LTIP and
retention cash payments, pension credit, restructuring charges,
and other charges.

LTIP, Retention and Restructuring Charges reflect non-recurring
cash item adjustments to EBITDA.  Gain on Sale of Assets reflects
non-cash item adjustments to EBITDA.  The $13,700,000
Restructuring Charges for 2006 includes $3,900,000 of cash
Restructuring Charges and $9,800,000 of non-cash charges.  Other
charges relate to cost reduction initiatives.

                   Armstrong World Industries, Inc.
                        Reconciliation to GAAP

                                      2006             2007
                                      ----             ----

   Net Operating Income           $228,500,000     $299,500,000
                                  ------------     ------------
   Depreciation & Amortization     135,800,000      134,500,000
                                  ------------     ------------
   EBITDA                         $364,300,000     $434,000,000
                                  ============     ============

   EBITDA Adjustments:
   LTIP                            $17,100,000      $17,500,000
   Retention Bonus Payments          3,700,000        3,800,000
   Pension Credit                  (37,800,000)     (49,000,000)
   Gain on Sale of Assets          (15,000,000)              --
   Restructuring Charges            13,700,000        4,700,000
   Other Charges                    21,000,000               --
                                  ------------     ------------
   ADJUSTED EBITDA                $367,000,000     $411,000,000
                                  ============     ============

Mr. Gangl notes that the LTIP reflects incentive awards payable in
2006 and 2007 under the Company's 1999 Long-Term Incentive Plan, a
non-recurring cash item adjustment to EBITDA.  The retention bonus
payments to be made in 2006 and 2007 under the Debtor's employee
retention program are non-recurring cash item adjustments to
EBITDA.

Pension Credit and Gain on Sale of Assets reflect a non-cash item
adjustment to EBITDA.  Restructuring Charges reflect non-recurring
cash item adjustments to EBITDA, except for the $13,700,000
Restructuring Charges for 2006.

According to Mr. Gangl, the Projections were prepared by the
Debtor's management in the Spring of 2006, and the assumptions and
estimates on which the Projections were based were not disclosed
to the Holders.  The projected information regarding Net Sales,
Gross Profit and Selling, General and Administrative Expenses:

   * assumed the continued conduct in the ordinary course of
     the Debtor's operations as they existed at the time the
     projections were prepared; and

   * did not include provisions reflecting acquisition or sales
     of operations that have subsequently occurred or any impact
     that consummation of the Debtor's Plan of Reorganization
     would have on the Debtor's results of operations during the
     projection period, including the effect that adoption of
     "fresh start accounting" under A.I.C.P.A. Statement of
     Position 99-1 in connection with consummation of the Plan
     would have on the Debtor's reported results of operations.

Included in the "Potential EBITDA Adjustments" and the projected
financial measures are estimates of the effects of certain
contemplated, but not all possible, non-recurring transactions and
adjustments relating to the Plan of Reorganization or other
business initiatives of the Debtor, Mr. Gangl says.

The Financial Projections reflect:

   -- the Debtor's reported financial results through
      March 31, 2006; and

   -- the Debtor's estimates at that time of its expected
      consolidated results of operations for the balance of 2006
      and for 2007 based on various assumptions and then-current
      expectations of the future performance of the Debtor's
      business and the industry and economic conditions.

Mr. Gangl says information contained in the Financial Projections
was not prepared in accordance with A.I.C.P.A. or any other
professional standards for the preparation or presentation of
financial projections and was not reviewed by the Debtor's auditor
or any outside expert or advisor.

Mr. Gangl cautions investors not to rely on the Projections in
making investment decisions regarding securities of the Debtor or
its parent company, Armstrong Holdings, Inc.

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
-- http://www.armstrong.com/-- the major operating subsidiary of
Armstrong Holdings, Inc., designs, manufactures and sells interior
floor coverings and ceiling systems, around the world.

The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C. Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts.  The Debtors
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice.  The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.

When the Debtors filed for protection from their creditors, they
listed $4,032,200,000 in total assets and $3,296,900,000 in
liabilities.  The Bankruptcy Court confirmed AWI's plan on
Nov. 18, 2003.  The District Court Judge Robreno confirmed AWI's
Modified Plan on Aug. 14, 2006.  The Clerk entered the formal
written confirmation order on Aug. 18, 2006.  (Armstrong
Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ARMSTRONG WORLD: Professionals Ask for Payment of Fees, Expenses
----------------------------------------------------------------
Dean M. Trafelet, the legal representative of future claimants,
and six bankruptcy professionals retained in Armstrong World
Industries, Inc.'s Chapter 11 case, asks the Honorable Eduardo C.
Robreno of the U.S. District Court for the Eastern District of
Pennsylvania, to direct the payment of $3,212,849 in fees and
$419,759 in expenses they incurred in connection with the
confirmation of the Debtor's Fourth Amended Plan of
Reorganization, as modified.

In his role as Future Claimants Representative, Mr. Trafelet
incurred $73,320 in fees and $8,800 in expenses from
April 7, 2006, to July 12, 2006.

The Professionals and their fees and expenses are:

                                Period
   Professionals               Covered        Fees     Expenses
   -------------               -------        ----     --------
   Analysis, Research &        04/06/06 to
   Planning Corporation        07/31/06     $307,923     $1,865

   Cozen O'Connor              04/06/06 to
                               07/31/06       30,659      7,177

   Kaye Scholer LLP            04/07/06 to
                               07/11/06    1,714,435    270,756

   Richards, Layton &          04/07/06 to
   Finger, P.A.                07/11/06       24,970

   Weil, Gotshal & Manges LLP  04/06/06 to
                               07/11/06      982,416     62,958

   Young Conaway Stargatt      04/07/06 to
   & Taylor LLP                07/12/06       79,126     68,203

Judge Robreno entered a Fee Order on April 6, 2006, which provided
that any application for the allowance of Confirmation-related
fees and expenses for the Confirmation Period "will be heard and
adjudicated by the District Court".

Richards Layton does not seek reimbursement of expenses because it
initially understood that the District Court Fee Order apply only
to fees.  Jason M. Madron, Esq., at Richards, Layton & Finger,
P.A., in Wilmington, Delaware, notes that his firm had previously
submitted to the Bankruptcy Court requests for reimbursement of
expenses incurred during the Confirmation Period.

Richards Layton and Weil Gotshal represent the Debtors, while
Cozen O' Connor is counsel to the Official Committee of Unsecured
Creditors.

Kaye Scholer, Young Conaway and ARPC are authorized to provide
professional services to Mr. Trafelet as Future Claimants
Representative.

The firms' services during the Confirmation Period include:

   (1) preparation for estimation trial and reviewing and
       filing of pretrial pleadings;

   (2) attendance at estimation trial;

   (3) post-trial briefing and closing oral argument;

   (4) discovery relating to Confirmation;

   (5) preparation of expert reports and rebuttal reports and
       analysis of other experts' reports; and

   (6) analysis of discovery and expert deposition testimony.

Based in Lancaster, Pennsylvania, Armstrong World Industries, Inc.
-- http://www.armstrong.com/-- the major operating subsidiary of
Armstrong Holdings, Inc., designs, manufactures and sells interior
floor coverings and ceiling systems, around the world.

The Company and its debtor-affiliates filed for chapter 11
protection on December 6, 2000 (Bankr. Del. Case No. 00-04469).
Stephen Karotkin, Esq., at Weil, Gotshal & Manges LLP, and Russell
C. Silberglied, Esq., at Richards, Layton & Finger, P.A.,
represent the Debtors in their restructuring efforts.  The Debtors
tapped the Feinberg Group for analysis, evaluation, and treatment
of personal injury asbestos claims.

Mark Felger, Esq. and David Carickhoff, Esq., at Cozen and
O'Connor, and Robert Drain, Esq., Andrew Rosenberg, Esq., and
Alexander Rohan, Esq., at Paul, Weiss, Rifkind, Wharton &
Garrison, represent the Official Committee of Unsecured Creditors.
The Creditors Committee tapped Houlihan Lokey for financial and
investment advice.  The Official Committee of Asbestos Personal
Injury Claimant hired Ashby & Geddes as counsel.

When the Debtors filed for protection from their creditors, they
listed $4,032,200,000 in total assets and $3,296,900,000 in
liabilities.  The Bankruptcy Court confirmed AWI's plan on
Nov. 18, 2003.  The District Court Judge Robreno confirmed AWI's
Modified Plan on Aug. 14, 2006.  The Clerk entered the formal
written confirmation order on Aug. 18, 2006.  (Armstrong
Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ASARCO LLC: Court Approves LMI Settlement Agreement
---------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas in
Corpus Christi approves in their entirety the Settlement
Agreement, the Escrow Agreement, and all other agreements between
ASARCO LLC and certain London Market Insurers.

As adequate protection for any Contribution Claims that Fireman's
Fund Insurance Company may have against the participating LMI,
the Court rules that the Contribution Claims are preserved as
against the Debtors or any other parties-in-interest, and may
asserted as a defense against parties in the Texas Coverage
Action.

To the extent the Contribution Claims are finally determined to
be valid, FFIC's liability to the Debtors will be voluntarily
reduced on a dollar-for-dollar basis by the amount of the
Contribution Claims.  The Court does not require FFIC to name any
Participating LMI as party in any pending or future arbitration
to enforce the Contribution Claims.

The Order is without prejudice to FFIC's rights and claims under
its insurance policies issued to the Debtors.

FFIC will not seek to assert any Contribution Claims from any
Participating LMI, and the Order will not be construed as an
acknowledgment that FFIC has Contribution Claims against the
Participating LMI, provided that if the Order is found to be
ineffective, then FFIC's rights of subrogation against any
Participating LMI will be fully preserved.

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


ASARCO LLC: Willis Gets Paid for Brokerage Services
---------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of Texas in
Corpus Christi approves the payment of Willis of Arizona, Inc.'s
fees as ASARCO LLC's insurance broker.

ASARCO LLC maintains insurance policies covering all aspects of
its business, including workers' compensation, business auto
coverage, umbrella liability, directors' and officers' liability,
employment practices liability, fiduciary liability, crime,
property coverage, cargo program, environmental liability
coverage, and storage tank liability.

ASARCO is currently addressing its options in connection with its
insurance needs, James R. Prince, Esq., at Baker Botts L.L.P., in
Dallas, Texas, told the Court.  Next year, ASARCO will need to
make important business decisions in connection with the
insurance policies, including:

   (a) evaluating their renewal, change and replacement;
   (b) the undertaking of risk, limit and retention analyses;
   (c) the completion of loss control analysis; and
   (d) the review of claims management issues, as needed.

ASARCO submitted proposal requests to four different brokers to
solicit interest for assistance in managing its insurance
portfolio of policies.  A consensus recommendation was presented
to, and approved by, ASARCO's Board of Directors.  Willis of
Arizona, Inc., was the recommended broker.

The Debtors and Willis entered into an engagement letter, which
provides for Willis' service and compensation arrangement for the
period Aug. 1, 2006, to Aug. 1, 2007.

As insurance broker, Willis will:

   (a) assess the adequacy of ASARCO's coverages under its
       current policies and advise of modifications based on the
       company's risk profile;

   (b) update ASARCO's insurance underwriting data;

   (c) assist ASARCO in the preparation of insurance underwriting
       submission for its review and approval before submission
       to insurance underwriters;

   (d) develop, before any policy renewal, a negotiation strategy
       for meetings with insurance underwriters;

   (e) in the context of selecting specific coverage, prepare a
       written summary of all quotes and other disclosures
       affecting the selected coverage and prepare insurance
       binders, review and transmit policies to ASARCO;

   (f) assess the financial soundness of the insurers recommended
       to provide coverage and, on ASARCO's request, provide a
       factual analysis of the insurers;

   (g) review all policies and endorsements delivered by insurers
       or intermediaries for the purpose of confirming their
       accuracy and conformity to negotiated specifications and
       ASARCO's instructions, and advise the company of any
       changes in the policies;

   (h) meet with ASARCO's representatives to explain coverage and
       policies and promptly respond to ASARCO's requests for
       coverage information and analysis of changing market
       conditions;

   (i) assist ASARCO in developing procedures for handling loss
       exposures and reporting subsequent changes in underwriting
       information to insurance companies; and

   (j) inform ASARCO of the reporting requirements for claims, if
       applicable.

ASARCO will pay Willis a $175,000 fee and a performance incentive
fee up to $20,000.  Willis will be also awarded by the Debtors
commissions and fees earned on international placements.

The Fees are in addition to the net premium paid for the
Coverages.  The Base Fee will be paid in equal quarterly
installments of $43,750, starting Aug. 1, 2006.  The Incentive
Fee will be paid by Aug. 1, 2007.  Any commission earned on the
domestic placements will be offset against the Fees and will be
disclosed quarterly.

The Willis Engagement Letter provides that either party can
terminate their agreement on a 60-day notice.  If Willis
terminates the Engagement Letter before the expiration of the
term, it will be deemed to have fully earned and entitled to a
pro rata portion of the Base Fee.

If ASARCO terminates the Engagement Letter, Willis will be deemed
to have fully earned and be entitled to a portion of the Base
Fee:

   -- 50% if terminated during the first six months; and
   -- 100% of the Base Fee if terminated after six months.

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


ASG CONSOLIDATED: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for ASG Consolidated LLC.

Moody's revised its probability-of-default rating on the Company's
$196 million Senior Discount Global Notes due Nov. 1, 2011, from
Caa1 to B3.  Additionally, Moody's assigned an LGD6 rating to
those notes, suggesting noteholders will experience a 90% loss in
the event of a default.

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Seattle, Wash.-based ASG Consolidated LLC is an intermediate
holding parent company of American Seafoods Group LLC.

American Seafoods Group LLC -- http://www.americanseafoods.com/--  
harvests and processes a variety of fish species aboard its
catcher-processor vessels, its freezer-longliner vessels, and at
its land-based processing facilities.  The Company markets its
products to a diverse group of customers in North America, Asia,
and Europe.  In the U.S., American Seafoods is the largest
harvester and at-sea processor of pollock and hake and the largest
processor of catfish.  The Company also harvests and processes
cod, scallops, and yellowfin sole.  The Company maintains an
international marketing network through its U.S., Japan, and
European sales offices.


AVIALL INC: Moody's Withdraws Corporate Family Rating's Ba3
-----------------------------------------------------------
Moody's Investors Service has withdrawn all ratings assigned to
Aviall, Inc.  The acquisition of Aviall by The Boeing Company was
completed on September 21, 2006, and as part of that transaction
the substantial majority of Aviall's outstanding rated notes were
repaid under the terms of a tender offer.  As a wholly owned
subsidiary of Boeing, Aviall will no longer provide independent
financial information.  The rating has been withdrawn because
Moody's believes it lacks adequate information to maintain a
rating on any ramaining untendered notes.

Outlook Actions:

   * Issuer: Aviall, Inc.

     -- Outlook, Changed To Rating Withdrawn From Rating Under
        Review

Withdrawals:

   * Issuer: Aviall, Inc.

     -- Corporate Family Rating, Withdrawn, previously rated Ba2

     -- Senior Unsecured Regular Bond/Debenture, Withdrawn,
        previously rated Ba3

Aviall Inc., headquartered in Dallas, TX, is a global provider of
new aviation parts to the aerospace market as well as supply chain
management to customers in the government/military, general
aviation/corporate and commercial aviation sectors.


BASIC ENERGY: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its Ba3 Corporate
Family Rating for Basic Energy Services Inc.

Moody's also confirmed its B1 rating on the company's 7.125%
Senior Unsecured Guaranteed Global Notes Due 2016 and assigned the
debentures an LGD4 rating suggesting noteholders will experience a
67% loss in the event of a default.

In addition, Moody's raised its rating on the company's Senior
Secured Guaranteed Revolving Credit Facility Due 2010 from Ba3 to
Baa3 and assigned the loan obligation an LGD2 rating suggesting a
projected loss-given default of 12%.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Midland, Texas, Basic Energy Services, Inc.
-- http://www.basicenergyservices.com/-- provides well site
services to oil and gas drilling and producing companies in Texas,
Louisiana, Oklahoma, New Mexico, and the Rocky Mountain States.


BERRY PLASTICS: Completes Tender Offer for 10.75% Sr. Sub. Notes
----------------------------------------------------------------
Berry Plastics Corporation has completed its tender offer and
consent solicitation for any and all of its outstanding
$335,000,000 aggregate principal amount of 10.75% Senior
Subordinated Notes due 2012 (CUSIP No. 085790AJ2) pursuant to the
Offer to Purchase and Consent Solicitation Statement dated
July 25, 2006, as extended on Aug. 7, 2006 and on Sept. 6, 2006.

The offer expired at 12:00 midnight, EST, on Sept. 20, 2006, with
$335,000,000 in aggregate principal amount of Notes (100% of
outstanding Notes) tendered and accepted for purchase under the
terms of the Offer.

Deutsche Bank Securities Inc. is the exclusive dealer manager and
solicitation agent for the tender offer and consent solicitation.

Based in Evansville, Indiana, Berry Plastics Corporation --
http://www.berryplastics.com/-- manufactures and markets rigid
plastic packaging products.  Berry Plastics provides a wide range
of rigid open top and rigid closed top packaging as well as
comprehensive packaging solutions to over 12,000 customers,
ranging from large multinational corporations to small local
businesses.  The company has 25 manufacturing facilities worldwide
and more than 6,800 employees.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Berry Plastics to 'B' from 'B+' following successful
completion of the acquisition of the company by private equity
firms, Apollo Management L.P. and Graham Partners.  Standard &
Poor's removed the ratings from CreditWatch, where they were
placed with negative implications on Aug. 3, 2006.  The outlook is
stable.

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed the B3 rating on Berry
Plastics Corp.'s $335 million 10.75% senior subordinated notes,
due July 15, 2012.


BERRY PLASTICS: Apollo and Graham Complete BPC Holding Purchase
---------------------------------------------------------------
Berry Plastics Group, Inc., an affiliate of the private equity
firms Apollo Management, L.P. and Graham Partners have completed
their previously announced acquisition of BPC Holding Corporation,
parent of Berry Plastics Corporation, from Goldman Sachs Capital
Partners and JPMorgan Partners.  Mr. Ira Boots will remain
President and Chief Executive Officer and the existing senior
management team will continue to lead Berry Plastics.

"We are very excited about being acquired by Apollo Management and
Graham Partners.  Servicing our customers while meeting the needs
of our employees, owners and investors will remain our focus.  The
management skills and packaging sector knowledge provided by
Apollo Management and Graham Partners, coupled with the strength
of Berry Plastics, will set the trend in leveraged buyouts," said
Mr. Boots.  "We are grateful for the past successes achieved by
Berry Plastics under the leadership of Joe Gleberman, Goldman
Sachs Capital Partners, and Mat Lori, CCMP Capital Advisors, LLC."

                      About Apollo Management

Apollo Management, L.P., founded in 1990, is among the most active
and successful private investments firms in the United States in
terms of both number of investment transactions completed and
aggregate dollars invested.  Since its inception, Apollo has
managed the investment of an aggregate of approximately
$13 billion in equity capital in a wide variety of industries,
both domestically and internationally.

                      About Graham Partners

Graham Partners is a middle market industrial private equity firm
based in suburban Philadelphia with over $850 million under
management.  Graham Partners is sponsored by the privately held
Graham Group of York, Pennsylvania, an industrial and investment
concern with global interests in plastics, packaging, machinery,
building products and outsource manufacturing.  Graham Partners
seeks to acquire industrial companies that participate in growing
manufacturing niches where Graham can leverage its unique
combination of operating resources and financial expertise.

                      About Berry Plastics

Based in Evansville, Indiana, Berry Plastics Corporation --
http://www.berryplastics.com/-- manufactures and markets rigid
plastic packaging products.  Berry Plastics provides a wide range
of rigid open top and rigid closed top packaging as well as
comprehensive packaging solutions to over 12,000 customers,
ranging from large multinational corporations to small local
businesses.  The company has 25 manufacturing facilities worldwide
and more than 6,800 employees.

                        *     *     *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Berry Plastics to 'B' from 'B+' following successful
completion of the acquisition of the company by private equity
firms, Apollo Management L.P. and Graham Partners.  Standard &
Poor's removed the ratings from CreditWatch, where they were
placed with negative implications on Aug. 3, 2006.  The outlook is
stable.

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed the B3 rating on Berry
Plastics Corp.'s $335 million 10.75% senior subordinated notes,
due July 15, 2012.


BIOVEST INT'L: Equity Deficit Raises to $12.7MM in Third Quarter
----------------------------------------------------------------
BioVest International, Inc., reported a $4.1 million net loss on
$2 million of net revenues for the three months ended
June 30, 2006, compared to a $2.5 million net loss on $1.4 million
of revenues in 2005, the Company disclosed in its third quarter
financial statements on Form-10QSB filed with the Securities and
Exchange Commission.

At June 30, 2006, the Company's balance sheet showed $10.8 million
in total assets and $23.6 million in total liabilities, resulting
in a $12.7 million stockholders' deficit.  The Company's equity
deficit stood at $5.1 million at Sept. 30, 2005.

The Company's June 30 balance sheet also showed strained liquidity
with $6.5 million in total current assets available to pay
$11.3 million in total current liabilities coming due within the
next 12 months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1258

                      New Market Tax Credits

On April 26, 2006, the Company, through its wholly owned
subsidiary, Biovax, Inc., closed a financing transaction that was
structured in an effort to obtain certain perceived advantages and
enhancements from the New Market Tax Credit regulations adopted
under the auspices of the United States Department of the Treasury
in 2002 to provide incentive for investing in businesses located
in "qualifying census tracts," or areas with a median income below
the poverty line.  In the Transaction, Biovax entered into a
Convertible Loan Agreement where Telesis CDE purchased from Biovax
a Subordinated Convertible Promissory Note dated as of April 25,
2006, in the principal amount of $11.5 million.  The CDE Loan has
a maturity date of Oct. 27, 2013.  These parties were involved in
the Transaction: Biovax, Accentia Biopharmaceuticals, Inc., the
Company's majority shareholder, Biolender, LLC, Telesis CDE Two,
LLC, Telesis CDE Corporation, Biovax Investment LLC, U.S. Bancorp
Community Investment Corporation, First Bank and Laurus Master
Fund, Ltd.

Under an Asset Purchase Agreement dated as of April 18, 2006, the
Company transferred substantially all of the assets of its vaccine
manufacturing business situated at 377 Plantation Street, in
Worchester, Massachusetts, and the Company's rights under that
lease agreement for the Plant and that letter of intent with the
landlord to potentially lease additional space adjacent to the
Plant to Biovax.

As full purchase price for the Equipment, Biovax paid the Company
$1.5 million and assumed certain liabilities, including a portion
of a demand note payable to Accentia.  In addition, Biovax
advanced rental payments for the Leasehold in the amount of $4.5
million.  Under the Asset Purchase Agreement, the Company is
required to treat the advance as unrestricted and non-segregated
funds provided that we shall use the funds to make all required
lease payments.  Finally, Biovax also hired all of the Company's
employees that are related to the vaccine manufacturing business
and assumed responsibility for all accrued vacation time and
maintenance of existing health and other benefits.

                        Going Concern Doubt

Aidman Piser & Co., PA, expressed substantial doubt about
BioVest's ability to continue as a going concern after it audited
the Company's financial statements for the fiscal years ended
Sept. 30, 2005, and 2004.  The auditing firm pointed to the
Company's significant losses and working capital deficit at
Sept. 30, 2005.

BioVest International, Inc. -- http://www.biovest.com/-- is a
biotechnology company that provides cell culture services to
research institutions and the biopharmaceutical industry.
BioVest also develops, manufactures and markets cell culture
systems.  For over 10 years the company has been designated, by
the National Institutes of Health, as the National Cell Culture
Center.  Through its proprietary technology, BioVest provides cell
culture services to research institutions, biotechnology companies
and the pharmaceutical industry.  The company is the holder of a
Cooperative Research and Development Agreement with the National
Cancer Institute for the commercialization of a personalized
biologic therapeutic cancer vaccine for the treatment of
non-Hodgkin's lymphoma currently in its phase III pivotal trial.


BRASKEM SA: Declares Pricing of Tender Offer for 12.50% Notes
-------------------------------------------------------------
Braskem S.A. disclosed the pricing information for its cash tender
offer for any and all of its outstanding $275,000,000 principal
amount of 12.50% Notes due 2008 (CUSIP Nos.: 10553H AD 4 and
10553J AD 0; ISIN Nos. US10553HAD44 and US10553JAD00; Common Code
Nos. 018005328 and 018005484).  The tender offer is scheduled to
expire at 5:00 p.m., New York City time, today, unless extended or
earlier terminated.

Settlement of the offer is expected to occur on the third business
day following the Expiration Date, which is expected to be
Oct. 2, 2006.

Braskem will pay the total consideration in the manner described
in the Offer to Purchase, dated Aug. 29, 2006, plus accrued and
unpaid interest from the last interest payment date to, but
excluding, the Settlement Date, for the Notes accepted pursuant to
the Offer to Purchase.  The total consideration includes an early
tender premium in the amount of $20 per $1,000 principal amount of
Notes.  Noteholders who did not validly tender their Notes prior
to 5:00 p.m., New York City time, on Sept. 18, 2006, will receive
the tender offer consideration, which does not include the early
tender premium.

The table below shows the relevant pricing information for the
consideration payable for the Notes:

Reference U.S.    Bloomberg    Fixed Spread   Actual Reference
Treasury          Reference                   Yield
Security          Page

3-1/8% U.S.       PX5             0.450%          4.625%
Treasury note
    due
Oct. 15, 2008

Tender    Tender Offer                  Total
Offer     Consideration                 Consideration
Yield     Per $1,000                    Per $1,000
          Principal Amount              Principal Amount
          of Notes                      of Notes

5.075%    $1,125.48                     $1,145.48

The pricing information for the Total Consideration was calculated
by the Dealer Managers in the manner described in the Offer to
Purchase at 2:00 p.m., New York City time, on Sept. 25, 2006.

Braskem has retained ABN AMRO Bank N.V., London Branch, and
Citigroup Global Markets Inc. to act as Dealer Managers for the
tender offer, JPMorgan Chase Bank, N.A. to act as the depositary
for the tender offer, and D.F. King & Co., Inc. to act as
information agent for the tender offer.

Questions or requests for assistance or additional copies of the
Offer to Purchase and the related Letter of Transmittal may be
directed to the Information Agent at:

           D.F. King & Co., Inc.
           Tel: (800) 290-6431 (toll free)
                (212) 269-5550)(banks and brokers call collect)

Braskem -- http://www.braskem.com.br/-- is a thermoplastic resins
producer in Latin American, and is among the three largest
Brazilian-owned private industrial companies.  The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products.

                        *    *    *

Standard & Poor's Ratings Services assigned on Sept. 22, 2006, its
'BB' senior unsecured debt rating to the proposed up to $275
million bonds due Jan. 2017 to be issued by Brazil-based
petrochemical company Braskem S.A. (BB/Stable/--).  The bonds will
rank pari passu with the company's other senior unsecured notes.

Fitch assigned on Sept. 20, 2006, a rating of 'BB+' to Braskem
S.A.'s proposed issuance of $275 million senior unsecured notes
due to 2017.  The notes are being offered under Rule 144A
Regulation S.  The proceeds of the offering are expected to be
used to prepay existing debts and extend debt maturities.  Fitch
also maintains foreign currency and local currency Issuer Default
Ratings of 'BB+' and a national scale rating of 'AA(bra)' for
Braskem.  The Rating Outlook is Stable.


BRISTOW GROUP: Moody's Assigns Loss-Given-Default Rating
--------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency confirmed its Ba2 Corporate
Family Rating for Bristow Group Inc.

Moody's also confirmed its Ba2 rating on the company's 6.125%
Senior Unsecured Guaranteed Global Notes Due 2013, and assigned
the debentures an LGD4 rating suggesting noteholders will
experience a 59% loss in the event of a default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Houston, Texas, Bristow Group Inc. --
http://www.bristowgroup.com/-- provides helicopter transportation
services to the offshore oil and gas industry worldwide.  Its
services include helicopter transportation, maintenance, search,
and rescue and aviation support, as well as oil and gas production
management services.  The company operates under the brand names
of Air Logistics and Bristow Helicopters for its helicopter
services, and Grasso Production Management for its production
management services.  As of March 31, 2006, the company operated
331 aircrafts and its unconsolidated affiliates operated an
additional 146 aircrafts.


BXG RECEIVABLE: Moody's Rates $7.4 Mil. Class F Certs. at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned a Aaa rating to the senior
class of notes issued by BXG Receivables Note Trust 2006-B in
Bluegreen Corporation's securitization of timeshare receivables.
Moody's also rated Classes B, C, D, E and F Aa2, A2, Baa1, Baa3
and Ba2.  The ratings were based on the levels of credit
enhancement provided by each of the subordinate classes, the
overcollateralization, the reserve fund, the quality of the
timeshare receivables, and the structure of the transaction.

These are the complete rating actions:

   * Issuer: BXG Receivables Note Trust 2006-B

     -- $51.561 mil; Class A, 5.605% Timeshare Loan-Backed Notes,
        Series 2006-B, Aaa

     -- $21.879 mil; Class B, 5.704% Timeshare Loan-Backed Notes,
        Series 2006-B, Aa2

     -- $22.338 mil; Class C, 5.952% Timeshare Loan-Backed Notes,
        Series 2006-B, A2

     -- $24.480 mil: Class D, 6.468% Timeshare Loan-Backed Notes,
        Series 2006-B, Baa1

     -- $11.475 mil; Class E, 7.21%, Timeshare Loan Backed Notes,
        Series 2006-B, Baa3

     -- $7.497 mil; Class F, 9.377%, Timeshare Loan Backed Notes,
        Series 2006-B, Ba2

Bluegreen specializes in drive-to timeshare developments in
regional locations.  Bluegreen owns or manages 29 resorts. The
resorts are in 9 states and in Aruba.  The locations of the core
resorts are

              Gatlinburg, Tennessee;

              Pigeon Forge, Tennessee;

              North Myrtle Beach and Myrtle Beach,
              South Carolina;

              Branson, and Ridgedale Missouri;

              Gordonsville, Virginia;

              Wisconsin Dells, Wisconsin;

              Charleston, South Carolina;

              Orlando, Florida;

              near Miami Beach, Florida;

              Boyne Falls, Michigan;

              Ormond Beach, Florida;

              St. Augustine, Florida;

              Marathon, Florida;

              Hershey, Pennsylvania; and,

              Aruba.

There are 44 resorts in the Bluegreen Club.

Bluegreen, which has senior impled rating of from Moody's with a
stable outlook, markets to people with minimum household incomes
of $40,000 a year.  It estimates that its customer's average
annual household income is approximately $70,000, which is less
than the industry average.  The average outstanding loan balance
in the transaction as of the statistical cut-off date of August
15, 2006 was approximately $11,106.  The weighted average coupon
was approximately 15%.The weighted average term to maturity was
114 months and the weighted average age was 3.9 months.  Most of
the loans have an original term of 10 years with a minimum
required down payment of 10% although, higher down payments lead
to a reduction on the interest rate charged on the loan.

The resort concentrations in terms of percentages of the aggregate
collateral balance as of the statistical cut-off date are not very
high with the exception of the Fountains Resort in Orlando which
represents over 30% of transaction receivables.  By state of
residence, the highest obligor concentration is in North Carolina
with 11.7%.  The concentration of foreign borrowers stands at the
statistical cut-off date at below 1.5%.

The Class F series 2006-B will be paid interest in each period
after all required interest and principal distributions have been
made on all the senior classes in all cases.  In contrast to the
2005 securitization, there will be no cash accumulation or
delinquency triggers.  This is due to the strength of the early
amortization trigger and of the trigger event (which includes a
delinquency test) which lead to the direct distribution of all
collections to the notes.

The required reserve fund balance as a percentage of the aggregate
closing date collateral balance will be at closing 1%, then until
month 18 after closing 5% and will decrease by 0.75% after that to
reach a floor of 1.5%.

Bluegreen Corporation., headquartered in Boca Raton, Florida, has
been in the timeshare business since 1994 and is among the top ten
sellers of timeshares in the United States.  Bluegreen is the
servicer in this transaction.


CALUMET LUBRICANTS: Moody's Assigns Loss-Given-Default Rating
-------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the oilfield service and refining and marketing
sectors this week, the rating agency lowered its Corporate Family
Rating for Calumet Lubricants Co. Limited Partnership to B3 from
B2.

Moody's also revised its probability-of-default ratings and
assigned loss-given-default ratings on these loans and bond debt
obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   Sr. Sec. Gtd.
   Term Loan Due
   2012                   B2       B1     LGD2        26%

   Sr. Sec. Gtd.
   Letter of Credit
   Facility               B2       B1     LGD2        26%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Indianapolis, Indiana, Calumet Lubricants Co.
Limited Partnership -- http://www.calumetlub.com/-- refines
quality specialty hydrocarbon products.


CANAL CARTING: Case Summary & 40 Largest Unsecured Creditors
------------------------------------------------------------
Lead Debtor: Canal Carting, Inc.
             P.O. Box 609
             Brooklyn, NY 11231

Bankruptcy Case No.: 06-43526

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Canal Sanitation, Inc.                     06-43527

Type of Business: The Debtor provides waste management services.

Chapter 11 Petition Date: September 25, 2006

Court: Eastern District of New York (Brooklyn)

Debtor's Counsel: Stephen B. Kass, Esq.
                  Law Offices of Stephen B. Kass, P.C.
                  225 Broadway - Suite 711
                  New York, NY 10007
                  Tel: (212) 843-0050
                  Fax: (212) 571-0640

Estimated Assets: $500,000 to $1 Million

Estimated Debts:  $1 Million to $10 Million

A. Canal Carting, Inc.'s 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Internal Revenue Service      Payroll Tax Debt        $1,084,000
Special Procedures Funtio
625 Fulton Street
10 Metrotech Center
Brooklyn, NY 11201

NYS Dept. Tax & Finance       Payroll & Sales Tax       $646,000
Tax Compliance DIV.OOS        Debt
O.S. Unit Building 8,
Room 7
Albany, NY 12227

IESI NY Corp.                 Vendor Debt               $153,177
1099 Wall Street West
Lyndhurst, NJ 07071

Local Union 813               Union Benefits            $121,930
45-18 Court Square
Long Island City, NY 11101

American Recycling Mngm.      Vendor Debt               $115,758
17233
Douglas Avenue
Jamaica, NY 11433

NYS Insurance Fund            Workers Compensation       $80,000
Worker's Compensation
P.O. Box 4788
Syracuse, NY 13221

Approved Oil                  Vendor Debt                $67,323
6741 5th Avenue
Brooklyn, NY 11220

CooperTank & Welding Corp     Vendor Debt                $60,523
215 Moore Street
Brooklyn, NY 11206

Transportation Industry       Insurance                  $40,753
P.O Box 1634
Albany, NY 12201

Empire Lube Corp.             Vendor Debt                $38,866
800 Roosevelt Avenue          (Lawsuit
Carteret, NJ 07008            Commenced)

AICCO, Inc.                   Insurance                  $30,571
1001 Winstead Drive
Suite 500
Cary, NC 27513

Environmental Control Boa     Tickets                    $16,316
P.O. Box 2307
Peck Slip Station Rd.
New York, NY 10272

Gabrielli Truck Sales         Vendor Debt                $12,111
P.O. Box 5739
Hicksville, NY 11802

NJ Turnpike Authority         Accident Claim             $11,598
P.O. Box 5042
Woodbridge, NJ 07095

Aramark Uniform Services      Vendor Debt                $10,166
1060 Gelb Street
Union, NJ 07083

BFI Waste Services of NY      Vendor Debt                $10,116
920 East 132nd Street
Bronx, NY 10454

A&A Brake Service Co.         Vendor debt                $10,060
224 3rd Avenue
Brooklyn, NY 11217

Zurich Deductible             Insurance                   $9,847
Recovery Group
NW 5608-P.O. Box 1450
Minneapolis, MN 55485

Roth Horowitz, LLC            Legal Fees                  $7,249
150 Morris Avenue
Suite 206
Springfield, NJ 07081

NYS Unemployment Insurance    Arrears on the              $6,065
P.O. Box 4301                 unemployment
Binghamton, NY 13902          insurance

B. Canal Sanitation, Inc.'s 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Internal Revenue Service      Payroll Tax Debt        $2,687,000
Special Procedures Funtio
625 Fulton Street
10 Metrotech Center
Brooklyn, NY 11201

NYS Dept. Tax & Finance       Payroll Tax Debt        $1,697,000
Tax Compliance DIV.OOS
O.S. Unit Building 8,
Room 7
Albany, NY 12227

IWS Transfer Systems          Vendor debt               $711,601
P.O. Box 288
Sloatsburg, NY 10974

Richard's Energy              Vendor Debt               $117,135
2125 Mill Avenue
Brooklyn, NY 11234

NYS Unemployment Insurance    Unemployment              $102,120
P.O. Box 4301                 Insurance
Binghamton, NY 13902

National Continental Ins.     Insurance                  $99,334
Caip Underwritting NJ
P.O. Box 94921
Cleveland, OH 44101

Hudson County Improvement     Vendor Debt                $97,777
574 Summit Ave., 5th Floor
Jersey City, NJ 07306

Law O. of Roy P. Kozupsky     Attorney Fees              $25,537
10 East 40th STreet,
Suite 1710
New York, NY 10016

Lemeor                        Vendor Debt                $24,469
170-180 Frelinghuysen Ave.
Newark, NJ 07114

Life Benefit Plan             Employee Benefits          $19,500
325 73rd Street
Brooklyn, NY 11209

U.S. Department of            Tickets                     $7,850
Transportation
802 Cromwell Park Drive
Suite N
Glen Burnie, MD 21061

LIE Check Cashing Corp.       Bounced Checks              $7,673
59-67 55th Road
Jamaica, NY 11435

Liberty Mutual Insurance      Insurance                   $7,029
75 Remittance Dr.
Suite 1837
Chicago, IL 606751837

Royal Lube                    Vendor Debt                 $5,517
180 West Fifth Street
Bayonne, NJ 07002

Eastern Organic Resources     Vendor Debt                 $2,975
DBA Woodhue Ltd.
2469 Saylors Pond Road
Wrightstown, NJ 08562

Environmental Control Boa     Tickets                     $2,965
P.O. Box 2307
Peck Slip Station Rd.
New York, NY 10272

Aramark Uniform Services      Vendor Debt                 $2,473
1060 Gelb Street
Union, NJ 07083

P&R Chemical                  Vendor Debt                 $1,517
P.O. Box 576
Oceanside, NY 11572

Ace Industrial Supply         Vendor Debt                 $1,207
7535 San Fernando Blvd.
Burbank, CA 91505

Mcneilus Truck & Manufacture  Vendor Debt                 $1,126
P.O. Box 219
941 Hemlock Road
Morgantown, PA 19543


CHIQUITA BRANDS: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its B2 Corporate
Family Rating for Chiquita Brands LLC.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans facilities:

   Issuer: Chiquita Brands LLC

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan B Due 2012      B1       Ba3     LGD2        26%

Gtd. Sr. Sec.
Term Loan C Due 2012      B1       Ba3     LGD2        26%

Gtd. Sr. Sec.
Revolving Credit
Facility Due 2010         B1       Ba3     LGD2        26%

   Issuer: Chiquita Brands International, Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Global Notes
Due 2014                  B3      Caa1     LGD5        89%

Sr. Global Notes
Due 2015                  B3      Caa1     LGD5        89%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Cincinnati, Ohio-based Chiquita Brands International, Inc.
(NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes
fresh food products including bananas and nutritious blends of
green salads.  The company markets its products under the
Chiquita(R) and Fresh Express(R) premium brands and other related
trademarks.  Chiquita employs approximately 25,000 people
operating in more than 70 countries worldwide.


CITIZENS FUNDING: S&P Rates Proposed $100 Mil. Securities at BB+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' preferred
share rating to the enhanced trust preferred securities ($100
million) proposed by Citizens Funding Trust I, a subsidiary of
Citizens Banking Corp. (BBB/Negative/A-2).

"We consider the enhanced trust preferred securities to have
intermediate-strong equity content under our equity credit
framework, and the issue will be included in our calculation of
Citizens Banking's capitalization measures up to 15% of adjusted
total equity," said Standard & Poor's credit analyst Scott
Sprinzen.

The two-notch differential between the rating on the issue and the
counterparty credit rating on Citizens Banking reflects a one-
notch differential for the enhanced trust preferred securities'
subordination, and an additional one-notch differential to reflect
the heightened payment risk compared with Citizens Banking's debt,
owing to the optional deferability of distributions.

The equity content of the enhanced trust preferred securities
results from long-dated maturity, subordination, and deferability
of distributions.

The underlying junior subordinated debentures have a maturity date
of 2066.  The issue is redeemable starting in 2011, and although
there is a legally enforceable covenant, which requires that the
issue only be redeemed using the previously raised proceeds of
equity-like qualifying securities (as defined), this covenant
expires in 2036.

Although Standard & Poor's views the potential for an early
redemption as a weakness of the issue, the rating agency takes
comfort from the fact that under the Federal Reserve's existing
risk-based capital guidelines applicable to bank holding
companies, any redemption by Citizens Banking of the junior
subordinated debentures before their maturity in 2066 would
require the previous approval of the Federal Reserve.

The underlying junior subordinated debentures are subordinated to
all existing debt of Citizens Financial.  Citizens Financial has
the right to defer distributions on one or more occasions, for up
to 10 years, without giving rise to an event of default and
acceleration.

Citizens Funding Trust I:

  Ratings Assigned:

     * Enhanced trust preferred securities at BB+


COLLEEN INC: Ch. 11 Hires Larry Strauss as Accountant
-----------------------------------------------------
The Honorable Nancy V. Alquist of the U.S. Bankruptcy Court for
the District of Maryland in Baltimore authorized Zvi Guttman, the
Chapter 11 Trustee for the bankruptcy estate of Colleen, Inc., to
retain Larry I. Strauss, CPA, as his accountant.

Mr. Guttman told the Court that the employment of an accountant is
necessary for the efficient administration of the Debtor's case
and to comply with Federal and State tax laws.  Mr. Strauss will
also help the Trustee determine the Debtor's income or loss,
prepare and file necessary monthly, quarterly and annual tax
returns and comply with U.S. Trustee reporting requirements.

Mr. Strauss will charge $195 per hour for his services.  The
hourly rates for other professionals at Mr. Strauss' firm are:

          Designation                  Hourly Rate
          -----------                  -----------
          Sr. Accountant                  $110
          Staff                            $85

To the best of the Trustee's knowledge, Mr. Strauss does not hold
or represent any interest adverse to the Debtor's estate.

Based in Baltimore, Maryland, Colleen, Inc., aka A & B Check
Cashing -- http://www.abcheckcashing.com/-- specializes in
cashing in all types of checks, and provides other financial
services.   The Debtor filed for Chapter 11 protection on
June 28, 2006 (Bankr. Dist. Md. Case No.: 06-13748).  In August
2006, the Court appointed Zvi Guttman as the Debtor's Chapter 11
Trustee.  Kristen B. Perry, Esq., and Brent C. Strickland, Esq.,
at Whiteford, Taylor & Preston LLP, represents the Chapter 11
Trustee.  When the Debtor sought protection from its creditors, it
disclosed assets of $467,000 and debts totaling $11,800,000.


COLLEEN INC: Chapter 11 Trustee Hires PENTA as Forensic Accountant
------------------------------------------------------------------
The Honorable Nancy V. Alquist of the U.S. Bankruptcy Court for
the District of Maryland in Baltimore allowed Zvi Guttman, the
Chapter 11 Trustee for the bankruptcy estate of Colleen, Inc., to
employ PENTA Advisory Services, LLC, as his Forensic Accountant
and Financial Consultant.

Prior to the filing of its Bankruptcy case, the Debtor operated a
check cashing businesses at 20 locations throughout the Baltimore
region.  On June 23, 2006, following the suicide of one of its
principals and amid rumors of a check kiting scheme resulting in
over $10,000,000 in losses, the Debtor ceased operations.

In this engagement, PENTA will:

     a) investigate and analyze transactions of the Debtor to
        identify potential recoveries for the estate;

     b) assist the Chapter 11 Trustee in securing the Debtor's
        relevant books and records; and

     c) perform other tasks as requested by the Chapter 11
        Trustee.

Mr. Guttman selected PENTA because the firm has established a
group that specializes in serving financially troubled companies.

The current hourly rates for PENTA's professionals are:

        Designation                      Hourly Rate
        -----------                      -----------
        Managing Directors               $420 - $470
        Directors                        $400 - $410
        Principals                       $270 - $350
        Senior Engagement Managers       $220 - $300
        Senior Consultants               $190 - $275
        Consultants                      $180 - $195
        Analysts                         $170 - $180
        Administrative                           $80

Charles R. Goldstein, a Managing Director within PENTA, assures
the Court that his firm is a "disinterested person" as that term
is defined in Section 101(14) of the Bankruptcy Code, and
represents or holds no interest adverse to the Debtor's estate.

Based in Baltimore, Maryland, Colleen, Inc., aka A & B Check
Cashing -- http://www.abcheckcashing.com/-- specializes in
cashing in all types of checks, and provides other financial
services.   The Debtor filed for Chapter 11 protection on
June 28, 2006 (Bankr. Dist. Md. Case No.: 06-13748).  In August
2006, the Court appointed Zvi Guttman as the Debtor's Chapter 11
Trustee.  Kristen B. Perry, Esq., and Brent C. Strickland, Esq.,
at Whiteford, Taylor & Preston LLP, represents the Chapter 11
Trustee.  When the Debtor sought protection from its creditors, it
disclosed assets of $467,000 and debts totaling $11,800,000.


COLLINS & AIKMAN: Moody's Assigns Loss-Given-Default Ratings
------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B2 Corporate
Family Rating for Collins & Aikman Floorcoverings, Inc.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $50 million
   Sr. Secured
   Revolver             B1       Ba2      LGD2     14%

   $31 million
   Sr. Secured
   Term Loan            B1       Ba2      LGD2     14%

   $165 million
   9.75% Sr. Sub.
   Notes due 2010       Caa1     B3       LGD4     69%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Dalton, Georgia, Collins & Aikman Floorcoverings,
Inc. -- http://cafloorcoverings.com/-- manufactures commercial
carpeting for corporate, education, government, healthcare and
retailing entities worldwide.  It makes modular tile and six-foot
structured back carpeting for the commercial market.  The Company
also manufactures 100% recycled-content secondary backing.  It
also has proprietary closed-loop carpet reclamation and recycling
programs.  The Company is a part of commercial floorcoverings
manufacturer Tandus Group, and works in tandem with sister brands
Monterey and Crossley.


COMMUNICATIONS CORPORATION: Taps Ernst & Young as Auditor
---------------------------------------------------------
Communications Corporation of America and its debtor-affiliates
and White Knight Holdings, Inc., and its debtor-affiliates, ask
the U.S. Bankruptcy Court for the Western District of Louisiana
for permission to employ Ernst & Young LLP as their auditor.

Ernst & Young will:

    (a) audit and report on each of the Debtors' respective
        consolidated financial statement for the year ending
        Dec. 31, 2005, with the objective of E&Y's audits being to
        express opinions on the fairness, in all material
        respects, of the presentation of the Debtors' consolidated
        financial statements in conformity with accounting
        principles generally accepted in the U.S.; and

    (b) perform research and engage in consultations with the
        Debtors regarding financial accounting and reporting
        matters on an as-needed basis.

The Debtors tell the Court that the firm's professionals bill:

        Professional                         Hourly Rate
        ------------                         -----------
        Partners & Executive Directors       $495 - $580
        Senior Manager/Manager               $350 - $425
        Senior                               $200 - $275
        Staff                                $150 - $190

To the best of the Debtors' knowledge, Ernst & Young is a
"disinterested person" as that term is defined in Section 101(14)
of the Bankruptcy Code.

                       About White Knight

Headquartered in Lafayette, Louisiana, White Knight Holdings,
Inc., is a media, television and broadcasting company.

White Knight entered into commercial inventory agreements, joint
sales agreements, and shared services agreements with
Communications Corporation of America.  However, both entities are
independent companies and are not affiliates of each other.  Along
with Communications Corp., White Knight operates around 23 TV
stations.

White Knight and five of its affiliates filed for chapter 11
protection on June 7, 2006 (Bankr. W.D. La. Case Nos. 06-50422
through 06-50427).  R. Patrick Vance, Esq., and Matthew T. Brown,
Esq., at Jones, Walker, Waechter, Poitevent, Carrere & Denegre,
LLP, represents White Knight and its debtor-affiliates in their
restructuring efforts.  White Knight and its debtor-affiliates'
chapter 11 cases are jointly administered under Communication
Corporation of America's chapter 11 case.

When White Knight and its debtor-affiliates filed for protection
from their creditor, they estimated less than $50,000 in assets
and estimated debts between $100,000 and $500,000.

             About Communications Corp. of America

Headquartered in Lafayette, Louisiana, Communications Corporation
of America, is a media and broadcasting company.  Along with media
company White Knight Holdings, Inc., it owns and operates around
23 TV stations in Indiana, Texas and Louisiana.  Communications
Corporation and 10 of its affiliates filed for bankruptcy
protection on June 7, 2006 (Bankr. W.D. La. Case Nos. 06-50410
through 06-50421).  Douglas S. Draper, Esq., William H. Patrick
III, Esq., and Tristan Manthey, Esq., at Heller, Draper, Hayden,
Patrick & Horn, LLC, represents Communications Corporation and its
debtor-affiliates.  When Communications Corporation and its
debtor-affiliates filed for protection from their creditors, they
estimated assets and debts of more than $100 million.


COMPUCREDIT ACQUIRED: Moody's Rates $25 Mil. Class B Notes at Ba2
-----------------------------------------------------------------
Moody's Investors Service rated several classes of notes issued
from the CompuCredit Acquired Portfolio Voltage Master Business
Trust, Series 2006-1.  The ratings are based on the credit quality
of the underlying credit card receivables, the experience of
CompuCredit Corporation as servicer, the existence of a back-up
servicing agreement, and the transaction's structural protections,
which include rapid amortization triggers and credit enhancement
through subordination.

These are the complete rating actions:

   * Issuer: CompuCredit Acquired Portfolio Voltage Master
     Business Trust

     -- $210,500,000 Series 2006-1 Class A-1 Notes, rated Aaa;
     -- $50,000,000 Series 2006-1 Class A-2 Notes, rated Aa2;
     -- $45,000,000 Series 2006-1 Class A-3 Notes, rated A2;
     -- $85,000,000 Series 2006-1 Class A-4 Notes, rated Baa2;
     -- $25,000,000 Series 2006-1 Class B Notes, rated Ba2.

                            Background

The portfolio of well-seasoned, mostly sub-prime general purpose
VISA and MasterCard credit card receivables was originated by
Circuit City's bank subsidiary, First North America National Bank.
FNANB sold the portfolio to Fleet in 2003.  Fleet then merged with
Bank of America and, in November 2004, sold the billion portfolio
to Transistor Holdings, LLC.

Transistor Holdings is a Delaware limited liability company with
three members of equal ownership.  These members are:

   * CSC Acquisition, LLC, a subsidiary of CompuCredit;

   * Blue Ridge Investments, LLC, an affiliate of Banc of America
     Securities LLC, and

   * Greenwich Capital Financial Products, Inc., an affiliate of
     Greenwich Capital Markets, Inc.

Conductor LLC is the transferor of the receivables to the Trust
and is domiciled in Nevada.  Conductor is a wholly owned
subsidiary of Transistor Holdings and Transistor Holdings is the
sole member of Conductor.

The Trust will issue only two series: Series 2006-1 and a variable
funding note.  The partially amortizing trust structure reflects
management's aim to reduce the portfolio balance over time.

                      Collateral description

The collateral backing the notes are unsecured bankcard credit
card receivables issued to obligors of generally below-average
credit quality.  For example, as of July 1, 2006, the weighted
average FICO score for the securitized pool was 639, the average
credit line was $5,317 and the average balance $1,738.  The
portfolio is well-seasoned -- more than 97% of the receivables
were generated on accounts originated before 2003.  Also, as of
July 31, 2006, the Trust contained approximately $528 million in
receivables owed on approximately 304,000 accounts.

Performance of the portfolio reflects the sub-prime nature of the
receivables.  Trusts backed by sub-prime receivables typically
have higher charge-off rates, higher yield and lower principal
payment rates than trusts that are backed by prime credit card
receivables.

Partially amortizing structure

In contrast to most credit card receivable-backed transactions,
which revolve for a pre-determined period of time before maturity,
the Series 2006-1 bonds employ a partially amortizing structure.
Essentially, from the closing date, allocable cash flows will be
used to both fund new purchases and to repay principal to
investors.  The amount and priority of these allocations depend on
pre-determined triggers based on minimum subordination
requirements, among other things.  If principal payments are
insufficient to cover new purchases, a VFN may be drawn upon to an
agreed upon limit.

The allocation of principal collections fall into four distinct
periods, each of which has distinct payment allocations to
noteholders, including the VFN. Subordination levels relative to
the Class A notes, among other things, is a key factor in
determining which of the four periods is applicable.

Compucredit's role

Among the three owners of Transistor Holdings, CompuCredit (not
rated), the parent of CSC Acquisition, LLC, retains the key
operational experience for underwriting, collecting and servicing
credit card receivables.  CompuCredit is the servicer and
administrator for the Trust.

Experienced originator and servicer, reliant on securitization

CompuCredit is an originator and servicer of sub-prime credit card
receivables.  The Company began issuing credit cards in 1997 and,
through both new originations and acquisitions, has grown rapidly.
With limited access to other funding sources, the company heavily
relies on the securitization market as a source of liquidity and
financing.  In April 1999, CompuCredit went public and started
trading on the Nasdaq under the ticker symbol "CCRT".  In April
2002, CompuCredit hired BDO Seidman LLP as its independent auditor
to replace Ernst & Young LLP.

Experienced securitizer

CompuCredit has several other securitization vehicles of its own.
CompuCredit-originated receivables are securitized in the
CompuCredit Card Master Note Business Trust, and acquired
portfolios have been securitized through the jointly-owned Pass-
through Amortizing Credit Card Trusts, the FMT Amortizing Note
Business Trust, and the CompuCredit Credit Card Acquired Portfolio
Business Trust.

Third party account ownership.

CompuCredit does not own a bank and, without a bank charter,
cannot originate credit card accounts.  Instead, for this
portfolio of accounts, FNBO owns the credit card accounts
(CompuCredit has a similar relationship with other account owners.
Columbus Bank & Trust is CompuCredit's principal third-party
credit card originating financial institution). Receivables that
arise on such accounts are purchased each day by a wholly owned
subsidiary of Transistor Holdings, Transistor LLC.  If Transistor
LLC is not able to purchase or fund these receivables, FNBO may
revoke cardholders' charging privileges.

FNBO's account ownership agreement expires six years after the
closing date.  If FNBO does not extend its term and account
ownership cannot be transferred to a successor bank, the accounts
will likely be closed (i.e. cardholders' charging privileges will
be revoked), which will likely have an adverse impact on
collateral performance.

In September 2005, the Company announced its intention to merge
with CardWorks, Inc., a privately held issuer and third-party
servicer of consumer credit card receivables through its
subsidiary Merrick Bank Corporation, a Utah industrial loan bank.
The CardWorks acquisition is subject to customary closing
conditions, including regulatory approvals.  This merger is still
pending due primarily to an FDIC-imposed moratorium (until January
2007) on approving acquisitions of industrial loan charters.

Regulatory actions

In June 2006, CompuCredit entered into a settlement agreement with
the New York Attorney General's Office to resolve an investigation
into CompuCredit's marketing, servicing and collection practices.

In addition, the FDIC is currently investigating the policies,
practices and procedures that CompuCredit uses in connection with
Columbus Bank & Trust.

Back-up servicer

Upon the occurrence of certain events, FNBO is contracted to take
over servicing for the transaction from CompuCredit.  FNBO is an
experienced originator and servicer of consumer credit cards. FNBO
has a senior unsecured deposit rating of Baa2 and a servicer
quality rating of SQ3-.

The Class A and Class B notes were sold without registration under
the Securities Act of 1933 under circumstances designed to
preclude a distribution thereof in violation of the Act and that
the issuance has been designed to permit resale under rule 144A


CONEXANT SYSTEMS: Getting $100MM From Acquicor-Jazz Merger
----------------------------------------------------------
Conexant Systems, Inc., expects to receive cash proceeds of
approximately $100 million when Acquicor Technology, Inc., a
special purpose acquisition company, completes its merger with
Jazz Semiconductor, Inc., a privately held specialty wafer
manufacturing company.

Under the terms of the definitive agreement, Jazz will merge with
a wholly owned subsidiary of Acquicor in an all-cash transaction
valued at $260 million, subject to certain adjustments.
Completion of the merger is expected to occur in the first quarter
of calendar 2007.

Conexant owns approximately 42% of Jazz, a wafer foundry that
provides advanced specialty process technologies for the
manufacture of highly integrated analog and mixed-signal
semiconductor devices.  Jazz was formed in March 2002 as a joint
venture between Conexant and The Carlyle Group, a leading global
private equity firm.  Conexant contributed its specialty process
technologies and the manufacturing equipment in its Newport Beach
wafer fabrication facility to the joint venture in return for its
stake in the new company.  Prior to that, the Newport Beach
fabrication facility was wholly owned by Conexant.

Jazz's initial customers consisted of Conexant and Skyworks
Solutions, Inc., a publicly traded company created from the spin-
off of Conexant's wireless business and the merger with Alpha
Industries in June 2002.  Since then, Jazz has successfully
expanded and diversified its customer base. These new customers
include Freescale Semiconductor, Inc., Marvell Technology Group
Ltd., Texas Instruments, Inc., and RF Micro Devices, Inc.

"Jazz has been an important supplier for Conexant since its
inception, and I expect our relationship to continue," said Dwight
W. Decker, Conexant chairman and chief executive officer.  "Over
the past four years, the Jazz team has consistently made
outstanding progress on all fronts in a highly competitive
environment.  The company began manufacturing for just Conexant
and its spin-off companies and is now a supplier to almost 100 new
customers from all over the industry.  I expect that the merged
company and senior management team will continue to build on this
record of success."

"From a Conexant perspective, our share of the proceeds from this
transaction will significantly strengthen our balance sheet and
provide us with improved liquidity," Mr. Decker added.

Conexant expects to record a modest gain when the Acquicor-Jazz
transaction closes.

Headquartered in Newport Beach, California, Conexant Systems, Inc.
(NASDAQ: CNXT) -- http://www.conexant.com/-- is a fables
semiconductor company.  The company has approximately 2,400
employees worldwide.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 20, 2004,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Newport Beach, California-based Conexant Systems, Inc.,
to 'B-' from 'B' on projections of sharply reduced sales and
profitability over the next few quarters.  The outlook is
negative.


CORD BLOOD: Posts $1.2 Million Net Loss in 2006 Second Quarter
--------------------------------------------------------------
Cord Blood America, Inc., reported a $1.2 million net loss on
$1 million of net revenues for the three months ended
June 30, 2006, compared to a $1.2 million net loss on $665,582 of
revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $1,010,531 in
total assets and $6,231,875 in total liabilities, resulting in a
$5,221,344 stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $563,860 in total current assets available to pay $1,027,218
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?1254

                       Going Concern Doubt

Rose, Snyder & Jacobs, in Encino, California, raised substantial
doubt about Cord Blood America, Inc.'s ability to continue as a
going concern after auditing the Company's consolidated financial
statements for the year ended Dec. 31, 2005.  The auditing firm
pointed to the Company's recurring operating losses, insufficient
working capital, and accumulated deficit.

Headquartered in West Hollywood, California, Cord Blood America,
Inc. (OTCBB:CBAI) -- http://www.cordblood-america.com/-- is the
parent company of Cord Partners, which facilitates umbilical cord
blood stem cell preservation for expectant parents and their
children.  Its mission is to be the most respected stem cell
preservation company in the industry.  Collected through a safe
and non-invasive process, cord blood stem cells offer a powerful
and potentially life-saving resource for treating a growing number
of ailments, including cancer, leukemia, blood, and immune
disorders.


COUDERT BROTHERS: Files for Chapter 11 Protection in S.D.N.Y.
-------------------------------------------------------------
International law firm Coudert Brothers LLP has filed for
bankruptcy protection after losing two lawsuits, Patrick
Fitzgerald at The Wall Street Journal reports.

According to the Journal, one of the lawsuits relate to a
$2.5 million malpractice suit filed by one of the firm's former
clients.  Coudert also faces a host of other malpractice suits as
well as actions by former partners, creditors and landlords.

Mr. Fitzgerald, citing court filings, says that the firm's
executive director, Patricia Kane, has claimed that Coudert
doesn't have the money to pay for the judgment.  Ms. Kane has also
accused certain former Coudert partners of siphoning over
$1.5 million of the firm's funds into their private accounts.

Coudert decided to wind down its practice last year after a
proposed merger with Baker & McKenzie failed to materialize, the
American Bankruptcy Institute reports.

                            About Coudert

Coudert Brothers LLP -- was an international law firm specializing
in complex cross border transactions and dispute resolution.  The
Debtor filed for Chapter 11 protection on Sept. 22, 2006 (Bankr.
S.D. N.Y. Case No. 06-12226).  Tracy L. Klestadt, Esq., at
Klestadt & Winters, LLP, represents the Debtor.  When it filed for
bankruptcy, Coudert estimated its assets and debts at between
$10 million to $50 million.


CREDIT SUISSE: Moody's Downgrades Ratings on 7 Certs. to Low-B's
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of nine
tranches issued by CSFB Home Equity Asset Trust in 2003 while
downgrading eight others.  Moody's has also confirmed three
ratings which had previously been on review for possible upgrade.
Three tranches have been placed on review for possible downgrade.
Each of these deals is primarily backed by first-lien, subprime
fixed and adjustable rate mortgage loans.

For each transaction being downgraded, the event of step-down has
adversely affected the amount of credit enhancement available to
the subordinate bonds despite lower than anticipated losses to
date.  Increases in Libor coupled with delayed resets on the
mortgage pools have contributed to diminishing levels of excess
spread.  The recent pace of losses has, in some instances, begun
to erode overcollateralization.  The tranches being upgraded are
considered to be adequately enhanced against future deteriorations
in performance and support.

These are Moody's complete rating actions:

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-1

     -- Cl. M-1, Previously: Aa2; upgraded to Aa1,
     -- Cl. M-2, Previously: A1; upgraded to Aa3,
     -- Cl. M-3, Previously: A2; upgraded to A1,
     -- Cl. B-2, Previously: Baa2; downgraded to Ba1,
     -- Cl. B-3, Previously: Baa3; downgraded to B1.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-2

     -- Cl. M-1, Confirmed: Aa2,
     -- Cl. M-2, Confirmed: A1,
     -- Cl. M-3, Confirmed: A2,
     -- Cl. B-1, Previously: Baa1; downgraded to Baa3,
     -- Cl. B-2, Previously: Baa2; downgraded to B1.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-3

     -- Cl. M-1, Previously: Aa2; upgraded to Aa1,
     -- Cl. M-2, Previously: A2; upgraded to A1,
     -- Cl. M-3, Previously: A3; upgraded to A2,
     -- Cl. B-2, Previously: Baa2; downgraded to Ba2,
     -- Cl. B-3, Previously: Baa3; downgraded to Ba3.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-4

     -- Cl. M-1, Previously: Aa2; upgraded to Aaa,
     -- Cl. M-2, Previously: A2; upgraded to Aa2,
     -- Cl. M-3, Previously: A3; upgraded to Aa3,
     -- Cl. B-2, Previously: Baa2; downgraded to Ba1,
     -- Cl. B-3, Previously: Baa3; downgraded to Ba3.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-5

     -- Cl. B-3, Currently Baa3; on review for possible downgrade.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-6

     -- Cl. B-3, Currently Baa3; on review for possible downgrade.

   * Issuer: Credit Suisse First Boston Mortgage Securities Corp.
     Series 2003-7

     -- Cl. B-3, Currently Baa3; on review for possible downgrade.


CVS CORPORATION: Moody's Affirms Series A-2 Cert.'s Rating at Ba1
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of seven
securities and confirmed the rating of one security supported by
CVS Corporation lease obligations:

   * CVS Credit Lease Backed Pass-Through Certificates

     -- Series A-1, $158,700,000, downgraded to Baa2 from Baa1
     -- Series A-2, $125,000,000, confirmed at Ba1

   * CVS Lease-Backed Pass-Through Certificates

     -- Series 2001, $244,176,492, downgraded to Baa2 from Baa1

   * CVS Lease-Backed Pass-Through Certificates

     -- Series 2002-1, $247,586,347, downgraded to Baa2 from Baa1

   * CVS Lease-Backed Pass-Through Certificates

     -- Series 2003-1, $118,403,106, downgraded to Baa2 from Baa1

   * CVS Leased-Backed Pass-Through Certificates

     -- Series 2003-2, $269,455,748, downgraded to Baa2 from Baa1

   * CVS Lease-Backed Pass-Through Certificates

     -- Series 2004-1, $478,704,616, downgraded to Baa2 from Baa1

   * CVS Lease-Backed Pass-Through Certificates

     -- Series 2005-1, $380,697,783, downgraded to Baa2 from Baa1

The downgrades were prompted by CVS's senior unsecured debt rating
being downgraded to Baa2 from Baa1.  Moody's stated that the key
drivers of the rating downgrade are:

   (1) the belief that credit metrics for CVS will deteriorate
       because of the company's intention to finance with
       incremental short-term debt for the purchase of 703 stand-
       alone drug stores from Albertson's, Inc. for total
       consideration of about $4 billion and

   (2) the material increase in business risk that will result
       from the transaction.  The CVS corporate rating outlook is
       stable.

The CVS Credit Lease-Backed Pass-Through Certificates, Series A-1
and A-2 transaction is a combination credit tenant lease and
surety backed transaction.  Payments on the CVS leases are
sufficient to pay all interest and approximately 44% of the
principal of the Class A-2 Certificates.  The remaining principal
of the A-2 Certificates is insured under residual value insurance
policies issued by Financial Structures Limited and reinsured by
Royal Indemnity Company.  While the CVS corporate downgrade puts
some negative rating pressure on Class A-2, it is not sufficient
to warrant a downgrade.  Moody's is therefore confirming Class A-
2.

Headquartered in Woonsocket, Rhode Island, CVS currently operates
about 5,500 drug stores in 37 states and the District of Columbia.
The completed transaction, the company will add about 700 stand-
alone drug stores that are currently operated by Albertson's Inc.


DEL MONTE CORP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its Ba3 Corporate
Family Rating for Del Monte Corporation.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Revolving Credit
Facility Due 2011         Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan A Due 2011      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sec.
Term Loan B Due 2012      Ba3      Ba2     LGD2       29%

Gtd. Sr. Sub. Global
Notes Due 2012            B2       B2      LGD5       83%

Gtd. Sr. Sub. Global
Notes Due 2015            B2       B2      LGD5       83%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Del Monte Corporation is a wholly owned subsidiary of Del Monte
Foods Company.

Del Monte Foods Company (NYSE: DLM) -- http://www.delmonte.com/--  
produces, distributes and markets food and pet products for the
U.S. retail market.  A portfolio of brands include Del Monte(R),
Contadina(R), StarKist(R), S&W(R), Nature's Goodness(TM), College
Inn(R), 9Lives(R), Kibbles 'n Bits(R), Pup-Peroni(R),
Snausages(R), Pounce(R) and Meaty Bone(R).


DELPHI CORP: NuTech Wants Trial to Proceed by February
------------------------------------------------------
NuTech Plastics Engineering, Inc., sought to lift the automatic
stay to continue a breach-of-contract case against Delphi
Automotive Systems USA, LLC, and General Motors Corporation.

On July 19, 2006, the Bankruptcy Court held a preliminary hearing
on NuTech's request.  At the conclusion of the hearing, Judge
Drain asked the parties to "at least consider" an order that would
allow NuTech to pursue its claims against GM in the Michigan trial
court and allow the Michigan Trial Court to resolve NuTech's
claims.  The Bankruptcy Court continued the matter to a later
hearing date.

Delphi and NuTech met and conferred but disagreed about the
Bankruptcy Court's comments.  NuTech believed that the Court
continued the preliminary hearing to allow the parties to consider
cooperatively resolving the request, while Delphi believed that
the Bankruptcy Court had denied the request and only continued the
preliminary hearing to consider the need to depose a witness.

The parties' disagreement was resolved, at least temporarily, by
the submission to the Bankruptcy Court of a negotiated form of
order continuing this matter to the September 14th omnibus hearing
for a final order to the extent that the Court had not earlier
resolved NuTech's request.

The Order confirmed that a final determination on NuTech's request
has not yet been made.  NuTech presented the Order to the Michigan
trial court in connection with a request to set NuTech's claims
for trial.

Delphi and GM, in their jointly filed answer to the Setting
Request, pointed out that the claims against them should be tried
together once the automatic stay terminates upon Delphi's
emergence from Chapter 11.  Delphi and GM believe that the facts
are "interrelated" and the damages are "interrelated and
inseparable."  Delphi and GM emphasized that the Michigan trial
court had previously determined and decided that the lawsuits
should not be bifurcated.

The Michigan trial court resolved NuTech's Setting Motion by
indicating that the first clear trial date on its calendar was in
April 2007, but nonetheless set a trial date against GM for
Feb. 14, 2007, as a back up for a scheduled trial.

Steven A. Klenda, Esq., at Tisdale & Associates LLC, on behalf of
NuTech, points out that the Michigan trial court did not, as a
practical matter, accept the Bankruptcy Court's approach.

According to Mr. Klenda, the February 2007 trial date set by the
Michigan trial court will allow Delphi more than ample breathing
room from NuTech's claim.  Delphi's Chapter 11 case will have
been either concluded or nearing completion, as a February 2007
trial will occur during the Debtors' projected exit from Chapter
11, Mr. Klenda notes.

Mr. Klenda argues that given Delphi's admission of the
interrelatedness of NuTech's claims against it and GM and the
benefits of a one-trial resolution to judicial efficiency, among
other things, it makes sense to try these cases -? which have been
pending for almost four years now -? together.

Mr. Klenda maintains that the Bankruptcy Court should now take the
opportunity to revisit the preliminary determination in this
matter and rule as a final matter that trial may proceed in the
Michigan state court against both General Motors and the Debtor in
February or April 2007.

                      About Delphi Corp.

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


DELPHI CORP: 12,400 UAW Employees to Voluntarily Retire
-------------------------------------------------------
Delphi Corp. disclosed results of the Hourly Special Attrition
Plan reached on March 22, 2006 and the Hourly Special Supplemental
Attrition Plan reached on June 2, 2006 between the UAW, General
Motors and Delphi.  Approximately 12,400 Delphi employees,
representing roughly 85% of the retirement-eligible UAW workforce,
elected to retire by Jan. 1, 2007.  Approximately 1,400 employees
elected the buyout option.

Nearly all of Delphi's U.S. hourly employees represented by the
UAW were eligible for the buyout program, with approximately
14,600 of those employees eligible to participate in the
retirement and pre-retirement program.  Certain eligible U.S.
hourly employees accepted a lump sum incentive of $35,000 to
retire while other eligible employees under the program elected
buyout packages ranging from $40,000 to $140,000.

Under the proposed program, GM has agreed to assume the financial
obligations related to the lump sum payments to be made to
eligible Delphi U.S. hourly employees accepting normal or
voluntary retirement incentives.  Additionally, GM will fund
certain post-retirement employee benefit obligations related to
Delphi employees who transition to GM under the plan for purposes
of retirement as well as half of employee buyout costs.

                      About General Motors

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

                       About Delphi Corp.

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.


DELTA AIR: Court Approves IBM Outsourcing Pact
----------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Southern District
of New York to enter into a Master Agreement for Operations
Support Services between Delta Air Lines, Inc., and International
Business Machines Corporation.

As reported Troubled Company Reporter on Aug. 31, 2006, Delta
maintains a sophisticated network of computers that run a variety
of applications, including customer reservations, company record-
keeping, communications, flight management and maintenance
tracking services, that are critical to its business, related
Marshall S. Huebner, Esq., at Davis Polk & Wardwell, in New York.

To run the applications, Delta owns and operates a multitude of
computer equipment, including large mainframe systems and mid-
range server systems.  Delta, through its wholly owned subsidiary,
Delta Technology, LLC, currently operates and maintains its own
computer infrastructure.

As part of its restructuring efforts, Delta solicited proposals
from several reputable computer service providers to determine
whether outsourcing the operation and maintenance of computer
infrastructure to a third-party specialist would provide improved
service at a reduced cost, while allowing Delta to focus its
restructuring efforts on its core competency of providing air
transportation services to the public, Mr. Huebner relates.

After a lengthy evaluation process, Delta has decided to enter
into the Agreement with IBM, pursuant to which IBM will be
responsible for operating and maintaining Delta's mainframe and
mid-range computer hardware.

IBM has a long tradition of excellence in maintaining computer
hardware systems for large corporations.  By engaging IBM to
assume responsibility for maintaining its mainframe and mid-range
computers, Delta will benefit from IBM's expertise, Mr. Huebner
avers.

In addition, engaging IBM to maintain Delta's computers will lead
to significant cost savings over Delta continuing to do the work
in-house, Mr. Huebner contends.

Delta believes that entering into the Agreement will further its
efforts to reorganize and is in the best interests of the Debtors
and their estates.

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline in
terms of passengers carried and the leading U.S. carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The Company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone Group
L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Can Walk Away from Aero Newark Sublease Agreement
------------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Southern District
of New York to reject the Sublease Agreement and the Consent to
the Sublease, with Aero Newark, LLC, effective Sept. 1, 2006.

As reported in the Troubled Company Reporter on Sept. 5, 2006,
Delta Air Lines, Inc., is a party to:

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

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

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

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

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

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

Headquartered in Atlanta, Georgia, Delta Air Lines --
http://www.delta.com/-- is the world's second-largest airline in
terms of passengers carried and the leading U.S. carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The Company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone Group
L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 42; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DENNY'S CORP: Moody's Withdraws B2 Corp. Family Rating
------------------------------------------------------
Moody's Investors Service moved Denny's Corporation's corporate
family rating to Denny's Holdings, Inc. due to the fact that
Holdings is the highest ranking entity in the Denny's legal
organizational chart that has rated debt, represented by Holdings'
Caa1 rated $175 million senior unsecured notes due in 2012.  In
addition, Denny's Corporation, the ultimate parent company of the
Denny's brand, does not have any rated debt.  The 1st lien (B2)
and 2nd lien (B3) credit facilities were issued at Denny's, Inc.,
the operating subsidiary.  Therefore, the credit facility ratings
were moved to Denny's, Inc. from Denny's Corporation.

Ratings and stable outlook withdrawn:

   * Denny's Corporation - B2 corporate family rating.

Rating assigned with stable outlook:

   * Denny's Holdings, Inc. - B2 corporate family rating.

Denny's Corporation, a family-style restaurant chain headquartered
in Spartanburg, South Carolina, owned and operated 543 and
franchised 1,023 full-service family dining restaurants as of June
28, 2006. Domestic locations are scattered throughout 49 states
and the District of Columbia with concentrations in California,
Florida and Texas.  Revenues for fiscal 2005 totaled $979 million.


DIXIE GROUP: Moody's Assigns Loss-Given-Default Rating
------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for The Dixie Group, Inc. and its B3 rating on the
Company's $22 million convertible subordinated debentures due
2012.  Additionally, Moody's assigned an LGD6 rating to
debentures, suggesting noteholders will experience a 90%% loss in
the event of a default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Chattanooga, Tennessee, The Dixie Group Inc.
(NASDAQ:DXYN) -- http://www.thedixiegroup.com/-- is a marketer
and manufacturer of carpet and rugs to high-end residential
customers through the Fabrica International, Masland Residential
and Dixie Home brands.


DOLE FOOD: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its Ba3 Corporate
Family Rating for Dole Food Company, Inc.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities:

   Issuer: Dole Food Company, Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan B Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%

Gtd. Global Notes
Due 2010                  B3       B3      LGD5       77%

Global Notes Due 2009     B3       B3      LGD5       77%

Gtd. Global Bonds
Due 2011                  B3       B3      LGD5       77%

Debentures Due 2013       B3       B3      LGD5       77%

   Issuer: Solvest Ltd.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Gtd. Sr. Sec.
Term Loan C Due 2013      Ba3      Ba2     LGD2       20%

Gtd. Sr. Sec.
Letter of Credit
Due 2013                  Ba3      Ba2     LGD2       20%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Solvest, Ltd., is a wholly owned subsidiary of Dole Food Company,
Inc.

Westlake Village, Calif.-based Dole Food Company, Inc. --
http://www.dole.com/-- is the world's largest producer and
marketer of high-quality fresh fruit, fresh vegetables, and fresh-
cut flowers based on revenues.  Dole markets a growing line of
packaged and frozen foods and is a produce industry leader in
nutrition education and research.


EASY GARDENER: Judge Gross Approves Amended Disclosure Statement
----------------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware has approved the First Amended Disclosure
Statement explaining Easy Gardener Products, Ltd., and its debtor-
affiliates' First Amended Joint Plan of Liquidation.

Judge Gross determined that the Disclosure Statement contained
adequate information -- the right amount of the right kind -- for
creditors to make informed decisions when the Debtors ask them to
vote to accept the Plan.

The Debtor's Plan is premised upon a limited substantive
consolidation of the Debtors' estates solely for purposes of
actions associated with the confirmation and consummation of the
Plan.  Under the Plan, the Debtors will be deemed substantively
consolidated for distribution purposes as of the Confirmation
Date, and all Intercompany Claims will be eliminated.

The Plan does not contemplate the merger or dissolution of any of
the Debtors or the transfer or commingling of assets of the
Debtors, except to accomplish the distributions to creditors
contemplated under the Plan.

                       Treatment of Claims

All Allowed Administrative Claims will be paid in full on the
later of the effective date, the date the claim becomes an allowed
administrative claim, or as soon as practical.

All Allowed Priority Tax Claims will be paid in full on the
effective date, except those claims that have been paid before the
effective date.

All Class 1 Allowed Other Priority Claims will be paid in full on
the later of the effective date, the date the claim becomes an
allowed other priority claim, or as soon as practical.

All Class 2 Allowed Lenders' Claims will be paid from the proceeds
of the asset sale, under the conditions stated in the Sale Order
and the Final DIP Financing Order.

Class 3 Allowed Other Secured Claims are impaired.  Except if a
creditor agrees to a different treatment, each holder of an
Allowed Other Secured Claim will receive the collateral securing
the claim, as is, where is.  All costs associated with obtaining
the collateral will be borne by the creditors.  Any portion not
satisfied by the return of the collateral will be treated as a
general unsecured claim.

Holders of Class 4 Allowed General Unsecured Claims will receive a
pro rata share of 90% of the Net Available Funds within 30 days
after the effective date.  The remaining 10% will be retained by
the Debtors until the Final Distribution.  The Debtors expect
general unsecured creditors to receive 20% to 25% of their claims.

Class 5 Equity Interests will not receive anything under the Plan.

A full-text, redlined, copy of the Debtors' First Amended
Disclosure Statement is available for a fee at:

http://www.researcharchives.com/bin/download?id=060926213653

                        Plan Confirmation

The deadline for filing objections to the confirmation of the
Debtor's Plan is November 8, and a plan-confirmation hearing is
scheduled at 11:00 a.m., on Nov. 14, 2006.  Objections to
confirmatin of the Plan must be filed with the Clerk of the
Bankruptcy Court and copies furnished to:

          Debtors' Counsel:

          Laura Davis Jones, Esq.
          Pachulski Stang Ziehl Young Jones & Weintraub LLP
          919 North Market Street, 17th Floor
          P.O. Box 8705
          Wilmington, DE 19899-8705
          Fax: (302) 652-44000

          John F. Higgins, Esq.
          James Matthew Vaughn, Esq.
          Porter & Hedges, LLP
          1000 Main, 36th Floor
          Houston, TX 77002
          Fax: (713) 226-6248

          Counsel for the Creditors' Committee:

          Joel A. Waite, Esq.
          M. Blake Cleary, Esq.
          Young Conaway Stargatt & Taylor LLP
          The Brandywine Building
          1000 West street, 17th floor
          Wilmington, DE 19801
          Fax: (302) 576-3278

           The U.S. Trustee:

           William K , Harrington
           Office of the U.S Trustee
           844 King Street, Room 2207
           Lockbox #35
           Wilmington, DE 19899-0035
           Fax: (302) 573-6497

Headquartered in Waco, Texas, Easy Gardener Products, Ltd. --
http://www.easygardener.com/-- manufactured and sold a broad
range of consumer lawn and garden products, including weed
preventative landscape fabrics, fertilizer spikes, decorative
landscape edging, shade cloth and root feeders, which are sold
under various recognized brand names including Easy Gardener,
Weedblock, Jobe's, Emerald Edge, and Ross.  The Company and four
of its affiliates filed for bankruptcy on April 19, 2006 (Bankr.
D. Del. Case Nos. 06-10393 to 06-10397).  James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young Jones & Weintraub LLP and John F.
Higgins, Esq., James Matthew Vaughn, Esq., and Joshua W.
Wolfshohl, Esq., at Porter & Hedges, LLP, represent the Debtors.
Adam Dunayer, Brett Lowrey, Michael Boone, and Ben Williams at
Houlihan Lokey Howard & Zukin give financial advice to the
Debtors.  Joel A. Waite, Esq., and M. Blake Cleary, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Official Committee
of Unsecured Creditors.  Samuel Star at FTI Consulting, Inc.,
gives financial advice to the Committee.  When the Debtors filed
for bankruptcy, they reported assets amounting to $103,454,000 and
debts totaling $107,516,000.


EASY GARDENER: Exclusive Solicitation Period Extended to Nov. 29
----------------------------------------------------------------
The Honorable Kevin Gross of the U.S. Bankruptcy Court for the
District of Delaware extended, until Nov. 29, 2006, Easy Gardener
Products, Ltd., and its debtor-affiliates' exclusive period to
solicit acceptances of their Joint Plan of Liquidation.

As reported in the Troubled Company Reporter on Sept. 11, 2006,
The Debtors' filed their liquidating plan on Aug. 4, 2006.  The
Debtors subsequently filed an amended plan and accompanying
disclosure statement on Sept. 19, 2006.   Judge Gross has approved
the adequacy of the Sept. 19 amended disclosure statement.

Headquartered in Waco, Texas, Easy Gardener Products, Ltd. --
http://www.easygardener.com/-- manufactured and sold a broad
range of consumer lawn and garden products, including weed
preventative landscape fabrics, fertilizer spikes, decorative
landscape edging, shade cloth and root feeders, which are sold
under various recognized brand names including Easy Gardener,
Weedblock, Jobe's, Emerald Edge, and Ross.  The Company and four
of its affiliates filed for bankruptcy on April 19, 2006 (Bankr.
D. Del. Case Nos. 06-10393 to 06-10397).  James E. O'Neill, Esq.,
Laura Davis Jones, Esq., and Sandra G.M. Selzer, Esq., at
Pachulski Stang Ziehl Young Jones & Weintraub LLP and John F.
Higgins, Esq., James Matthew Vaughn, Esq., and Joshua W.
Wolfshohl, Esq., at Porter & Hedges, LLP, represent the Debtors.
Adam Dunayer, Brett Lowrey, Michael Boone, and Ben Williams at
Houlihan Lokey Howard & Zukin give financial advice to the
Debtors.  Joel A. Waite, Esq., and M. Blake Cleary, Esq., at Young
Conaway Stargatt & Taylor, LLP, represent the Official Committee
of Unsecured Creditors.  Samuel Star at FTI Consulting, Inc.,
gives financial advice to the Committee.  When the Debtors filed
for bankruptcy, they reported assets amounting to $103,454,000 and
debts totaling $107,516,000.


FAREPORT CAPITAL: Inks Pact with Investor to Acquire 60% of Shares
------------------------------------------------------------------
Fareport Capital, Inc., disclosed that it proposes to restructure
its affairs, settle outstanding litigation, and complete a
conversion of all of its current debt obligations.

The Company proposes to enter into a financing transaction with an
investor, whereby the Investor will make a CDN$2.8 million
commitment to acquire certain existing debt and new common shares
of the Company.

Specifically, the Investor will first advance to the Company
CDN$200,000 by way of an unsecured subordinated loan bearing
interest at 12% per annum, evidenced by a convertible promissory
note, to be used as working capital.  Next, the Investor will
acquire from current holders certain pre-existing debentures,
promissory notes and other indebtedness of the Company having a
face value, including principal and interest, of approximately
CDN$3,076,083.  The Company then proposes to complete a 100 to 1
share consolidation, following which the Prior Loans will be
converted into common shares of the Company.  The Investor will
then purchase approximately CDN$1,130,838 worth of common shares
of the Company issued from treasury.

The Company anticipates that it will be instructed by the Investor
to register the shares issuable upon the conversion of the Prior
Loans in the names of certain shareholders of the Investor.

Finally, the Company proposes to create and issue to the Investor
CDN$100,000 worth of first convertible preferred shares such that
the Investor will, after the preferred shares are converted into
common shares, own 60% of the issued and outstanding common shares
of the Company.  As a result of the transactions, the Investor
would become the controlling shareholder of the Company.  The
terms of the transaction have been set out in a binding commitment
letter and term sheet, which, the Company anticipates, will be
superceded by definitive detailed documentation.

Pursuant to the Commitment Letter, the Company will seek the
agreement of the creditors under the Prior Loans to settle, in
full and final satisfaction, the Prior Loans in exchange for the
sale of the Prior Loans to the Investor for cash.  The settlement
is also expected to include a settlement of all outstanding
litigation involving the Company.  The "Conversion Price" will be
CDN$2.50 on a post-consolidation basis.

The Company also disclosed that in order to complete the
transactions, the outstanding litigation must be settled and prior
shareholder approval of:

   (a) the consolidation of the Company's common shares on a
       100 "old" common shares for 1 "new" common share basis;

   (b) the terms of conversion of the Prior Debt;

   (c) the issuance of Common Shares from treasury; and

   (d) the creation of a new class of preferred shares of the
       Company must be obtained.

Prior TSX Venture Exchange approval is also required to complete
the transactions.  The Company also commits to hold a special
meeting of its shareholders to approve the matters within 75 days
of the Advance closing.  The transactions are also subject to the
Investor being satisfied with its due diligence investigations of
the Company, acting reasonably, such condition to be satisfied or
waived by the Investor by Oct. 23, 2006.

                 Update on OSC Policy Compliance

The Company further disclosed that it is up-to-date with respect
to its financial statements and management reporting, in
compliance with the Ontario Securities Commission Policy 57-603.
The temporary management and insider cease trade order imposed
pursuant to OSC Policy 57-603, which prohibits present and certain
past directors, officers and insiders of the Company from trading
in securities of the Company, continues to be in effect.

Fareport Capital operates the Crown Taxi and Olympic Taxi
brokerages and dispatch operations in the city of Toronto.  The
Crown Taxi division dispatches to over 300 vehicles.  In addition,
through its Crown Transportation and Trax Shuttle Services
divisions, the Company also offers charter transportation
services.

                         *     *     *

Fareport Capital Inc.'s balance sheet at April 30, 2006 showed
total assets of CDN$1.7 million and total liabilities of CDN$3.8
million, resulting in a shareholders' deficit of CDN$2.1 million.
Shareholders' deficit at July 31, 2005 stood at CDN$1.5 million.


FEDERAL-M0GUL: Court Extends Lease Decision Period to Dec. 1
------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved
Federal-Mogul Corp. and its debtor-affiliates' request to further
extend the time within which they may elect to assume or reject
unexpired nonresidential real property leases and executory
contracts, through and including Dec. 1, 2006.

As reported in the Troubled Company Reporter on July 28, 2006,
while the Debtors have largely completed the process of evaluating
their unexpired nonresidential real property leases and a number
of economically and improvident leases have been rejected with the
Court's approval, several leases are continuing to be evaluated,
Scotta E. McFarland, Esq., at Pachulski Stang Ziehl Young Jones &
Weintraub LLP, in Wilmington, Delaware, relates.

According to Ms. McFarland, the process of evaluating and
rejecting the Real Property Leases has taken place as the Debtors,
consistent with their overall business plan, seek to:

   -- consolidate their facilities to eliminate redundancies and
      inefficiencies; and

   -- shift certain manufacturing efforts to portions of the
      country and the world more suitable to their businesses.

The four-month extension should be granted so the Debtors may
preserve maximum flexibility in restructuring their business,
Ms. McFarland maintains.

Without the extension, the Debtors are concerned that they could
be forced prematurely to assume the leases that would later be
burdensome, giving rise to large potential administrative claims
against their estates and hampering their ability to reorganize
successfully.

Alternatively, Ms. McFarland adds, the Debtors could be forced
prematurely to reject Real Property Leases that would have been of
benefit to their estates, to the collective detriment of all
stakeholders.

Ms. McFarland assures the Court that the Debtors, pending their
election to assume or reject the Real Property Leases, will
perform all their obligations, arising from and after the Date of
filing for chapter 11 protection, in a timely fashion.

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is one of the world's largest
automotive parts companies with worldwide revenue of some
$6 billion.  The Company filed for chapter 11 protection on
Oct. 1, 2001 (Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan
Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley
Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski,
Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the
Debtors in their restructuring efforts.  When the Debtors filed
for protection from their creditors, they listed $10.15 billion in
assets and $8.86 billion in liabilities.  Federal-Mogul Corp.'s
U.K. affiliate, Turner & Newall, is based at Dudley Hill,
Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath &
Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq.,
and Eric M. Sutty, Esq., at The Bayard Firm represent the Official
Committee of Unsecured Creditors.  (Federal-Mogul Bankruptcy News,
Issue No. 113; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FIRST UNION: Moody's Puts Low-B Ratings on Four Cert. Classes
-------------------------------------------------------------
Moody's Investors Service upgraded the ratings of eight classes
and affirmed the ratings of ten classes of First Union National
Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2001-C4

    --  Class A-1, $137,606,145, Fixed, affirmed at Aaa
    --  Class A-2, $469,800,000, Fixed, affirmed at Aaa
    --  Class IO-I, Notional, affirmed at Aaa
    --  Class IO-II, Notional, affirmed at Aaa
    --  Class B, $36,696,000, Fixed, affirmed at Aaa
    --  Class C, $12,232,000, Fixed, affirmed at Aaa
    --  Class D, $12,232,000, Fixed, upgraded to Aaa from Aa1
    --  Class E, $17,125,000, Fixed, upgraded to Aaa from Aa3
    --  Class F, $12,232,000, Fixed, upgraded to Aa1 from A1
    --  Class G, $12,232,000, Fixed, upgraded to Aa2 from A2
    --  Class H, $17,125,000, Fixed, upgraded to A1 from Baa1
    --  Class J, $14,678,000, WAC, upgraded to A3 from Baa2
    --  Class K, $14,679,000, Fixed, upgraded to Baa2 from Baa3
    --  Class L, $22,017,000, Fixed, upgraded to Ba1 from Ba2
    --  Class M, $7,339,000, Fixed, affirmed at Ba3
    --  Class N, $7,029,000, Fixed, affirmed at B1
    --  Class O, $6,938,000, Fixed, affirmed at B2
    --  Class P, $4,626,000, Fixed, affirmed at B3

As of the Sept. 14, 2006, distribution date, the transaction's
aggregate certificate balance has decreased by approximately 15.3%
to $828.7 million from $978.6 million at securitization. The
Certificates are collateralized by 123 mortgage loans ranging in
size from less than 1.0% to 4.1% of the pool with the top ten
loans representing 30.3% of the pool.  The pool includes one
shadow rated loan (3.7%) and the remainder of the pool is
comprised of conduit loans.  Fifteen loans, representing 13.7% of
the pool, have defeased and have been replaced with U.S.
Government securities.  Eight loans have been liquidated from the
trust resulting in realized losses of approximately $1.3 million.

One loan, representing 1.1% of the pool, is in special servicing.
Moody's anticipates a minimal loss from this loan.  Twenty-six
loans, representing 19.9% of the pool, are on the master
servicer's watchlist.

Moody's was provided with partial or full year 2005 operating
results for 88.3% of the performing loans.  Moody's loan to value
ratio for the conduit component is 82.9%, compared to 89.9% at
Moody's last full review in June 2005 and compared to 90.4% at
securitization.  Moody's is upgrading Classes D, E, F, G, H, J, K
and L due to increased subordination levels, improved overall pool
performance and defeasance.

The shadow rated loan is the General Motors Building Loan ($30.9
million - 3.7%), which is secured by a leasehold interest in two
Class A office buildings totaling 618,000 square feet.  The
buildings are part of the Renaissance Center in downtown Detroit,
Michigan and are 100.0% master leased to General Motors
Corporation (Moody's senior unsecured rating Caa1, compared to
Baa3 at last review in April 2005). GM's 20-year lease expires in
October 2021.  The loan matures in November 2009 and is fully
amortizing.  The loan has amortized by approximately 42.2% to
date.  Even though the loan is fully amortizing, Moody's is
concerned about potential volatility given the deterioration in
GM's financial condition and the weakened Detroit office market.
As of the fourth quarter of 2005, the office vacancy rate in
downtown Detroit was 19.4%. Market rents have declined by 33.1%
since securitization.  Moody's current shadow rating is Ba2,
compared to Baa1 at last review.

The top three conduit exposures represent 12.0% of the outstanding
pool balance.  The largest exposure is the Cornerstone Portfolio
($34.2 million - 4.1%), which consists of three cross
collateralized loans secured by three garden-style multifamily
properties totaling 735 units.  The properties are located in
Virginia (2) and North Carolina.  The portfolio is 95.0% occupied,
compared to 96.2% at last review.  Moody's LTV is 75.2%, compared
to 78.0% at last review.

The second largest conduit loan is the Overlook at Great Notch
Loan ($33.2 million - 4.0%), which is secured by a 415,000 square
foot Class A office building located in Little Falls (Passaic
County), New Jersey.  Performance has been impacted by a drop in
occupancy due to lease rollover and increased expenses. The
property is 77.0% occupied, essentially the same as at last
review, and compared to 92.0% at securitization.  Major tenants
include PricewaterhouseCoopers (35.0% NRA; lease expiration
October 2008) and Kline & Company (7.6% NRA; lease expiration
October 2010).  Moody's LTV is 97.0%, compared to 84.4%, at last
review.

The third largest conduit loan is the Orland Park Place Loan
($32.4 million - 3.9%), which is secured by a 421,000 square foot
power center located approximately 20 miles southwest of Chicago
in Orland, Illinois.  The center is 99.0% occupied, compared to
94.0% at last review.  Major tenants include Bed, Bath & Beyond
(13.0% GLA; lease expiration January 2015), Sportsmart (11.0% GLA;
lease expiration January 2015) and Steinmart (9.0% GLA; lease
expiration May 2010).  Moody's LTV is 90.8%, compared to 98.0% at
last review.

The pool's collateral is a mix of multifamily (32.9%), retail
(24.9%), office and mixed use (22.7%), U.S. Government securities
(13.7%) and industrial and self storage (5.8%).  The collateral
properties are located in 27 states plus Washington, D.C.  The
highest state concentrations are California (18.3%), Virginia
(10.9%), Nevada (8.2%), New Jersey (7.7%) and Illinois (7.5%). All
of the loans are fixed rate.


FLYI INC: Various Parties Object to Solicitation Procedures
-----------------------------------------------------------
FLYi, Inc., and debtor-affiliates asked the U.S. Bankruptcy Court
for the District of Delaware to establish uniform procedures for
the solicitation and tabulation of votes to accept or reject the
Joint Plan of Liquidation filed by the Debtors, the Troubled
Company Reporter reported on Aug. 25, 2006.

                            Responses

1. Manufacturers & Traders Trust

Prior to filing for bankruptcy, the Debtors financed the
acquisition or lease of airframes, aircraft engines, and related
parts through the issuance of $111,586,000 in pass through
certificates -- the EETC Transaction.

Manufacturers and Traders Trust Company, successor by merger to
Allfirst Bank, formerly known as The First National Bank of
Maryland, is the Pass Through Trustee, Indenture Trustee and
Subordination Agent on behalf of holders of the 1997-1 Pass
Through Certificates issued by the Debtors.

Bonnie Glantz Fatell, Esq., at Blank Rome LLP, in Wilmington,
Delaware, asserts that the Solicitation Procedures should
specifically provide that EETC Transaction certificate holders
will receive Solicitation Packages.  In addition, the order
approving the Solicitation Procedures should include a finding as
to the proper parties to be solicited and to vote with respect to
the EETC Transaction.

M&T asks the Court to direct the Debtors to supplement the
Solicitation Motion with provisions that will enable pertinent
parties to comply with the EETC Transaction's operative
documents.

2. U.S. Bank & QVT Financial

U.S. Bank National Association and QVT Financial LP assert that
the Debtors' Solicitation Motion reflects a flawed and improper
classification of claims and does not adequately discuss why
aircraft lease rejection claims, unsecured aircraft finance
claims and other aircraft-related claims will be allowed for
voting purposes.

U.S. Bank, as Indenture Trustee under a February 25, 2004
Indenture for the 6% Convertible Notes due 2034, and QVT, as
holder of approximately 60% of the Notes, hold claims which
constitute a significant portion of the undisputed claims against
the FLYi, Inc., estate.

Francis A. Monaco, Jr., at Monzack & Monaco, in Wilmington,
Delaware, asserts that the Debtors' proposal to lump the Disputed
Aircraft Claims together with other unsecured creditors in both
the FLYi and Independence Air, Inc., unsecured classes will allow
the Disputed Aircraft Claim holders to dominate the entire vote
on the Joint Plan of Liquidation.  As a result, Mr. Monaco points
out, U.S. Bank's and QVT's votes will be overwhelmed, diluted and
disenfranchised by the Disputed Aircraft Claims.

In addition, the separate classification of the $285,000,000
Intercompany Claim against Independence, and its holder's
presumed acceptance of the Plan, which allocates zero value to
it, is in violation of Section 1126(g) of the Bankruptcy Code,
Mr. Monaco contends.  A class receiving no distribution under a
Chapter 11 plan is presumed to reject the plan.  The Intercompany
Claim should rank pari passu with Independence's unsecured
creditors in a non-consolidated scenario, and should be voted by
an independent representative of parent-only creditors, Mr.
Monaco avers.

U.S. Bank and QVT relate that they may seek to conduct discovery
in connection with any Plan confirmation objections.  Both
parties thus ask the Court not to set a confirmation hearing date
at the moment or otherwise allow them sufficient time for
discovery to occur.

                   Claims Reduction Objections

Five creditors assert that they should be allowed to vote their
claims in full:

   (1) C.I.T. Leasing Corporation,
   (2) Export Development Canada,
   (3) IAE International Aero Engines AG,
   (4) ING Lease (Ireland) B.V., and
   (5) International Lease Finance Corporation.

The Creditors are parties to separate contracts and leases with
the Debtors, pursuant to which they filed several proofs of claim.

The Creditors note that the Debtors proposed to:

   -- reduce most of their Claims to $1 for purposes of voting on
      the Joint Plan of Liquidation;

   -- require them to file motions under Rule 3018 of the Federal
      Rules of Bankruptcy Procedure to re-establish, for voting
      purposes, the Claim Amounts; and

   -- instate that Rule 3018 motions will heard at the Plan
      Confirmation hearing.

The Debtors have not filed objections to the Claims in accordance
with Section 502(b) of the Bankruptcy Code and Rule 3007 of the
Federal Rules of Bankruptcy Procedure, the Creditors point out.
Moreover, the Debtors have not provided any reasons why the Claim
Amounts should be limited for voting or any other purposes.

The Claims are prima facie evidence of their validity and
amounts, the Creditors contend.  Thus, unless and until the
Debtors file a proper objection to the Claims, they should be
deemed allowed in the amounts filed.

The Creditors remind the Court that pursuant to Bankruptcy Rule
3018(a), the temporary allowance of a claim is only necessary or
appropriate once a proper objection to the claim has been filed.
Furthermore, the Creditors argue that they should be permitted to
seek a hearing on Rule 3018 motions prior to the Plan
Confirmation hearing.

Accordingly, the Creditors ask the Court to temporarily allow
their Claims in the amounts filed, for voting and every other
purpose under the Bankruptcy Code and the Bankruptcy Rules.

                     Vote Counting Objections

Four creditors oppose the Solicitation Motion to the extent that
it seeks to establish that votes cast in favor of the Debtors'
Joint Plan of Liquidation may be used to confirm the Plan even if
the Court changes the terms of the Intercompany Resolution
between the estates of FLYi, Inc., and Independence Air, Inc.:

   (1) C.I.T. Leasing Corporation,
   (2) International Lease Finance Corporation,
   (3) QVT Financial LP, and
   (4) U.S. Bank National Association.

The Debtors' proposed counting of votes is in violation of Rule
3019(a) of the Federal Rules of Bankruptcy Procedure, the
Creditors assert.

The United Airlines, Inc., Claims Settlement Proceeds, which
total approximately $100,000,000, comprise the largest of the
Debtors' assets, the Creditors point out.  Thus, allocation of
the UAL Proceeds will have a major impact on creditors'
recoveries.  The determination of whether the reallocation of the
UAL Proceeds is a material modification of the Plan requiring re-
solicitation should be made at the time the reallocation is made,
the Creditors argue.

Because it is not yet clear how the Intercompany Claim and
related issues will be settled, it is improper to have creditors
gamble away their votes before their treatment is more fully and
appropriately addressed, the Creditors contend.  How the
Intercompany Claim and the related issues will be settled should
be a matter for the creditor constituencies whose economic rights
and recoveries are at stake to resolve.

"Though the Plan is not before the Court at this time, the
Solicitation Motion, if granted, might predetermine issues that
should be properly decided at the Confirmation hearing," the
Creditors assert.

The Creditors thus ask the Court to deny the Solicitation Motion.

Headquartered in Dulles, Virginia, FLYi, Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.  (FLYi Bankruptcy News, Issue No. 25; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


FLYI INC: Contracts and Leases Rejection is Effective Aug. 31
-------------------------------------------------------------
The Hon. Mary F. Walrath of the U.S. Bankruptcy Court for the
District of Delaware rules that the rejection of the Contracts and
Leases with Manufacturers and Traders Trust Company and its
affiliates, predecessors and successors will be effective as of
Aug. 31, 2006.

As reported in the Troubled Company Reporter on Sept. 11, 2006,
FLYi, Inc., and its debtor-affiliates asked the Court for
authority to reject approximately 2,500 executory contracts and
unexpired leases, to the extent executory or unexpired.

The Contracts are unnecessary to the Debtors' estates, M. Blake
Cleary, Esq., at Young Conaway Stargatt & Taylor, LLP, in
Wilmington, Delaware, contended.  In addition, the Contracts have
no market value and are thus an undue burden to the Debtors'
estates.

Mr. Cleary related that the non-Debtor parties to the Contracts
have reason to expect that their contracts or leases would be
rejected given the Debtors' public announcement and numerous
press reports on the discontinuation of their scheduled flight
operations.

A 46-page list of the Contracts and Leases to be rejected is
available for free at http://ResearchArchives.com/t/s?1152

Headquartered in Dulles, Virginia, FLYi, Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.  (FLYi Bankruptcy News, Issue No. 25; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


FOAMEX INTERNATIONAL: Asks Court to Disallow Eleven Amended Claims
------------------------------------------------------------------
Foamex International Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to disallow and
expunge in their entirety:

    -- 11 claims that have been amended and superseded by
       subsequent proofs of claim;

    -- Claim No. 166, a duplicate claim; and

    -- Claim No. 1314, a late-filed claim.

According to Kenneth J. Enos, Esq., at Young Conaway Stargatt &
Taylor LLP, in Wilmington, Delaware, the Amended and Superseded
Claims no longer represent valid claims against the Debtors.  The
Amended and Superseded Claims are:

                            Remaining   Amended Claim    Claim
Claimant                    Claim No.   To Be Expunged   Amount
--------                    ---------   --------------   ------
Atmos Energy                  1321            11        $16,067
Automotive Rentals, Inc.      1185           799          1,181
Dallas County Linebarger
  Goggan Blair, et al.        1292           338     unliquidated
Dept. of Treasury IRS         1178           340        581,963
Health Resources              1316           675         92,902
IBM Credit LLC                1214           612          3,559
Longacre Master Fund Ltd.     1293          1261        283,946
Longacre Master Fund Ltd.     1298            45        254,592
New Jersey Tax Division       1118            49          2,200
New Mexico Environment Dept.  1266          1238              -
Penske Truck Leasing           324             5        311,193

PG Energy's Claim No. 166 was identified by the Debtors to be a
duplicate of Claim No. 1319.  The Claim, which asserts $82, was
filed with both the Clerk of the Bankruptcy Court and Bankruptcy
Services LLC, the Court-approved claims agent.

The Debtors believe that it was not the intention of PG Energy to
seek double recovery.  Regardless of PG Energy's reason for filing
duplicate claims, however, only Claim No. 1319 should be allowed,
Mr. Enos maintains.

Marshall Cogan filed Claim No. 1314 for $1,908,056 on August 3,
2006.  The Debtors object to the claim because it was filed beyond
the December 8, 2005 bar date for filing claims.

Mr. Enos says that failure to disallow the late-filed claim would
result in Mr. Cogan receiving an unwarranted recovery against the
Debtors' estates to the detriment of other similarly situated
creditors.

The Debtors reserve their right to object to any of the claims on
other grounds.

Objections to the Debtors' request are due Oct. 12, 2006.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The Company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  The
Company and eight affiliates filed for chapter 11 protection on
Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-12693).
Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP,
represent the Debtors in their restructuring efforts.  Houlihan,
Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the
ad hoc committee of Senior Secured Noteholders.  Kenneth A. Rosen,
Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and
Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the
Official Committee of Unsecured Creditors.  As of July 3,
2005, the Debtors reported $620,826,000 in total assets and
$744,757,000 in total debts.  (Foamex International Bankruptcy
News, Issue No. 27; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FOAMEX INTERNATIONAL: Gets Okay to Assume Amended EDS Contract
--------------------------------------------------------------
The Hon. Peter J. Walsh of the U.S. Bankruptcy Court for the
District of Delaware authorizes Foamex International Inc. and its
debtor-affiliates to assume their amended contract with Electronic
Data Systems Corp. and EDS Information Services LLC, effective
Sept. 21, 2006.

Judge Walsh directs the Debtors to cure the defaults under the
Original EDS Contract by paying $1,195,382 to the EDS Companies no
later than Sept. 30, 2006.

Judge Walsh also rules that the EDS Companies' unsecured
prepetition claim for $1,634,187 against the Debtors will be
deemed withdrawn upon the later of:

   (i) Sept. 21, 2006;

  (ii) payment to the EDS Companies of the cure amount; and

(iii) execution by the parties of the EDS Contract Amendment.

As reported in the Troubled Company Reporter on Sept. 8, 2006, the
EDS Companies provided the Debtors information technology services
that impact all facets of their businesses pursuant to the
original contract dated June 15, 2002.

The assumption of the amended EDS Contract provides the Debtors
with material benefits.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The Company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  The
Company and eight affiliates filed for chapter 11 protection on
Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-12693).
Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP,
represent the Debtors in their restructuring efforts.  Houlihan,
Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the
ad hoc committee of Senior Secured Noteholders.  Kenneth A. Rosen,
Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and
Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the
Official Committee of Unsecured Creditors.  As of July 3,
2005, the Debtors reported $620,826,000 in total assets and
$744,757,000 in total debts.  (Foamex International Bankruptcy
News, Issue No. 27; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FUTRONIX INC: Sibex Buys Bankrupt Assets for $1.38 Million
----------------------------------------------------------
Sibex Inc. purchased bankrupt Futronix Inc. and all its assets
last week for $1.38 million, Eddy Ramirez writes for the St.
Petersburg Times.

The deal came less than three years after Futronix disclosed major
expansion plans that included building a world-class electronics
manufacturing facility, Mr. Ramirez relates.

According to Sibex president Michael McCarthy Thursday, he will
continue to employ Futronix's 30 workers as part of the deal.
Although it will keep its headquarters in Safety Harbor, Sibex
says it will not assume Futronix's liabilities but would continue
doing business with Futronix clients.

"We have a lot of business that we will move to the (Homosassa)
plant," Mr. McCarthy told the paper.  "We're trying to continue
with any customers that were there."

Sibex approached Futronix in February regarding the sale as part
of its growth strategy.  The Times explains that the company has
been scouting additional manufacturing plants since outgrowing its
3,300-square-foot-building in Safety Harbor.

Headquartered in Safety Harbor, Florida, Sibex Inc. manufactures
electronic machinery prototypes and computer boards.

Headquartered in Homosassa, Florida, Futronix Inc. --
http://www.futronixinc.com/-- manufactures consigned & turnkey
production, helps with circuit design, assembly, fabrication and
produces Printed Circuit Boards.  The Co. and its affiliate,
Futronix Group Inc., filed chapter 11 petitions on April 5, 2005,
at the U.S. Bankruptcy Court for the Middle District of Florida
(Bankr. M.D. Fla. Case No. 05-06329).   Alberto F. Gomez, Jr.,
Esq., at Morse & Gomez, PA, represented the Debtors in their
bankruptcy proceedings.  When they filed for protection from their
creditors, the Debtors estimated between $1 million and $10
million in total assets and debts.


GB HOLDINGS: Creditors' Panel Submits Fourth Modified Ch. 11 Plan
-----------------------------------------------------------------
The Official Committee of Unsecured Creditors appointed in GB
Holdings, Inc.'s Chapter 11 case filed a Fourth Modified Chapter
11 Plan and related Disclosure Statement on Sept. 21, 2006.

The Committee's Plan hinges either on its successful attempt to
compel the payment of dividends due on Atlantic Coast
Entertainment Holdings, Inc., common stock owned by the Debtor or
the sale of these common stock holdings to the highest bidder at
an auction.

The Debtor has no operating activities and no income and its
principal tangible asset consist of 2,882,938 shares of common
stock, representing approximately 41.7% of the equity interests in
Atlantic.  Atlantic owns and operates The Sands Hotel & Casino in
Atlantic City, New Jersey.

The Committee believes that general unsecured creditors will
recover 100% of their claims if it's lawsuit to compel payment of
the dividend is successful.

The Atlantic stock will be sold to the highest bidder if the
Committee's dividend payment suit fails.  If the stock is sold
before the effective date of the plan, the net proceeds of the
sale will be used to fund a Liquidating Trust Reserve, in an
amount not to exceed $4 million, with the remaining amount to be
paid pro-rata to holders of Allowed "American Real Estate Holdings
Limited Partnership" AREH Claims and Allowed General Unsecured
Claims.

If the Atlantic stock is not sold before the effective date, the
stock will be transferred to the Liquidating Trust and the
Liquidating Trust will obtain an Exit Facility to administer the
Liquidating Trust Assets, which would include the sale of the
Atlantic stock and prosecution of causes of action.

In the event the dividend payment suit and the stock sale is
unsuccessful, the Liquidating Trust will have an Exit Facility in
the principal amount of up to $6,000,000 to fund the costs of
maintaining the Liquidating Trust and the Liquidating Trust
Assets, including the prosecution of the Causes of Action and any
marketing of the Atlantic stock.

                      Treatment of Claims

Pursuant to the Committee's liquidating plan, holders of Allowed
Administrative Claims, Priority Tax Claims, Other Priority Claims
and Secured Claims will be paid in full in cash or have their
secured interests reinstated.

The holder of an Allowed AREH Secured Claim will receive the
Restructured Note in full satisfaction, settlement and release of
the AREH Secured Claim.  However, if the dividend payment suit is
successful or a sale of the Atlantic stock is consummated, the
holder of an Allowed AREH Secured Claim will be paid in full and
in cash.

Holders of Allowed General Unsecured Claims will receive pro rata
Cash Distributions from either the dividend claim or the stock
sale and will receive pro rata beneficial interests in the
Liquidating Trust.

Holders of Allowed Equity Interests will receive pro rata
distributions, if any, from the residual proceeds of the dividend
claim or the stock sale.

A copy of the Committee's Fourth Modified Chapter 11 Plan is
available for a fee at:

http://www.researcharchives.com/bin/download?id=060926214233

                          About GB Holdings

Headquartered in Atlantic City, New Jersey, GB Holdings, Inc.,
primarily generates revenues from gaming operations in Atlantic
Coast Entertainment Holdings, which owns and operates The Sands
Hotel and Casino in Atlantic City, New Jersey.  The Debtor also
provides rooms, entertainment, retail store and food and beverage
operations.  These operations generate nominal revenues in
comparison to the casino operations.  The Debtor filed for
chapter 11 protection on September 29, 2005 (Bankr. D. N.J. Case
No. 05-42736).  Alan I. Moldoff, Esq., at Adelman Lavine Gold and
Levin, represents the Debtor.  Charles A. Stanziale, Jr., Esq., at
McElroy, Deutsch, Mulvaney & Carpenter, serves as counsel to the
Official Committee Of Unsecured Creditors.  When the Debtor filed
for protection from its creditors, it estimated assets and debts
between $10 million to $50 million.


GENERAL MOTORS: To Fund Post-Retirement Benefits of Delphi Workers
------------------------------------------------------------------
Delphi Corp. disclosed results of the Hourly Special Attrition
Plan reached on March 22, 2006 and the Hourly Special Supplemental
Attrition Plan reached on June 2, 2006 between the UAW, General
Motors and Delphi.  Approximately 12,400 Delphi employees,
representing roughly 85% of the retirement-eligible UAW workforce,
elected to retire by Jan. 1, 2007.  Approximately 1,400 employees
elected the buyout option.

Nearly all of Delphi's U.S. hourly employees represented by the
UAW were eligible for the buyout program, with approximately
14,600 of those employees eligible to participate in the
retirement and pre-retirement program.  Certain eligible U.S.
hourly employees accepted a lump sum incentive of $35,000 to
retire while other eligible employees under the program elected
buyout packages ranging from $40,000 to $140,000.

Under the proposed program, GM has agreed to assume the financial
obligations related to the lump sum payments to be made to
eligible Delphi U.S. hourly employees accepting normal or
voluntary retirement incentives.  Additionally, GM will fund
certain post-retirement employee benefit obligations related to
Delphi employees who transition to GM under the plan for purposes
of retirement as well as half of employee buyout costs.

                          About Delphi Corp.

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.

                     About General Motors

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

                           *     *     *

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

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

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


GMAC COMMERCIAL: S&P Raises Class K Certificates' Rating to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on nine
classes of commercial mortgage pass-through certificates from
GMAC Commercial Mortgage Securities Inc.'s series 2003-C1.
Concurrently, ratings were affirmed on 11 other classes from the
same series.

The raised and affirmed ratings reflect credit enhancement levels
that provide adequate support through various stress scenarios.
The raised ratings on several of the senior certificates reflect
the defeasance of $156.5 million (16%) in collateral since
issuance.

As of the Sept. 11, 2006, remittance report, the collateral pool
consisted of 103 loans with an aggregate trust balance of $1.00
billion, down from $1.05 billion with the same number of loans at
issuance.  The master servicer, Capmark Finance Inc., reported
primarily full-year 2005 financial information for 98% of the
pool.

Based on this information, Standard & Poor's calculated the
weighted average debt service coverage to be 1.62x, up from 1.54x
at issuance.  The current DSC excludes $156.5 million (16%) in
loans for defeased collateral.  All of the loans in the pool are
current.  To date, the trust has not experienced any losses.

The top 10 loans have an aggregate outstanding balance of $385.9
million (38%) and a weighted average DSC of 1.63x, compared with
1.72x at issuance.  The reduced DSC for the top 10 loans occurred
because two of the loans have reported significant declines in
DSC.  These two loans are on the watchlist and are discussed
below.

Standard & Poor's reviewed property inspections provided by the
master servicer for all of the assets underlying the top 10 loans.
Two properties were characterized as "excellent," while the
remaining collateral was characterized as "good."

At issuance, the largest and third-largest exposures in the pool
displayed credit characteristics consistent with high-investment-
grade obligations in the context of their inclusion in the pool.

The largest exposure in the pool, the Oakbrook Center, is a pari
passu loan with a whole-loan balance of $226.0 million and an in-
trust balance of $56.4 million (6%).  The loan is secured by 1.2
million sq. ft. of a 2.0 million-sq.-ft. super-regional mall in
Oak Brook, Illinois, as well as by 240,223 sq. ft. of office
space, a hotel, and an outparcel building that is 100% occupied by
The Cheesecake Factory.

Standard & Poor's adjusted net cash flow is 15% above the level at
issuance, and the loan continues to exhibit credit characteristics
consistent with a high-investment-grade obligation.

The third-largest exposure, the Chandler Fashion Center, is a pari
passu loan with a whole-loan balance of $177.0 million and an in-
trust balance of $53.5 million (5%).  The loan is secured by
630,570 sq. ft. of a 1.3-million-sq.-ft. super-regional mall in
Chandler, Arizona.  The collateral consists of 564,646 sq. ft. of
inline retail space and an 85,625-sq.-ft. Harkins Movie Theater
with 20 screens.

Standard & Poor's adjusted NCF is 7% above the level at issuance,
and the loan continues to exhibit credit characteristics
consistent with a high-investment-grade obligation.

Capmark reported a watchlist of 12 loans ($137.1 million, 14%).
The Renaissance at Columbia Center loan is the fifth-largest
exposure ($37.9 million 4%) and is secured by a 624,904-sq.-ft.
office property in Columbia, Maryland.  This loan appears on the
watchlist because the property's DSC for first-quarter 2006 was
0.88x.  The low DSC was caused by a loss of rental income due to
the lease expiration of a large tenant.  The lease for this tenant
has since been renewed, and Standard & Poor's expects DSC to
improve.

The Norwest Woods loan is the seventh-largest exposure ($31.9
million 3%) and is secured by a 322-unit multifamily property in
Norwood, Massachusetts.  The loan appears on the watchlist because
the property reported year-end 2005 DSC of 0.90x.  The decline in
DSC can be attributed to a fire that damaged 20 units, 13 of which
have been renovated and either rented or are on the market for
rent.  The remaining units were demolished and are being rebuilt.

The Village Park Apartments loan is the eighth-largest exposure
($24.0 million 2%) and is secured by a 544-unit multifamily
property in Troy, Michigan.  The collateral property has performed
poorly because the borrower is offering rent concessions, and the
loan appears on the watchlist because it reported 2005 DSC of
0.69x.

Standard & Poor's stressed the loans on the watchlist and other
loans with credit issues as part of its analysis.  The resultant
credit enhancement levels support the raised and affirmed ratings.

Ratings Raised:

            GMAC Commercial Mortgage Securities Inc.
  Commercial mortgage pass-through certificates series 2003-C1

           Class     To      From   Credit enhancement
           -----     --      ----   ------------------
             B       AAA     AA           15.97%
             C       AA+     AA-          14.79%
             D       AA      A            12.57%
             E       AA-     A-           11.00%
             F       A+      BBB+          9.82%
             G       A       BBB           8.64%
             H       A-      BBB-          7.46%
             J       BBB-    BB+           5.24%
             K       BB+     BB            4.19%

Ratings Affirmed:

            GMAC Commercial Mortgage Securities Inc.
  Commercial mortgage pass-through certificates series 2003-C1

              Class    Rating    Credit enhancement
              -----    ------    ------------------
              A-1      AAA             19.90%
              A-1A     AAA             19.90%
              A-2      AAA             19.90%
              L        BB-              3.40%
              M        B+               2.88%
              N-1      B                2.24%
              N-2      B                2.09%
              O        B-               1.83%
              P        CCC              1.31%
              X-1      AAA               N/A
              X2       AAA               N/A

                     N/A -- Not applicable.


GRUPO TMM: Redeems $155,820,539 of Senior Secured Notes Due 2007
----------------------------------------------------------------
Grupo TMM, S.A., disclosed the closing of a $200 million
securitization facility with Deutsche Bank AG, London.

Under the terms of the Transaction, the Company will make equal
monthly payments of principal and interest of approximately
$3.2 million from Oct. 2006 to Sept. 2010, a balloon payment of
$40 million in Oct. 2010 and equal monthly payments of principal
and interest of approximately $4.2 million from Oct. 2010 to the
final maturity on Sept. 25, 2012.

Using part of the proceeds, on Sept. 25, 2006, the Company
redeemed the total outstanding principal amount of $155,820,539
million and accrued interest of its Senior Secured Notes due 2007.
The remainder of the net proceeds from the Transaction will be
used in the implementation of the Company's business plan
including the purchase of vessels and other transportation assets.

Deutsche Bank AG, London, acted as structuring agent of the
facility, and provided the funding for the Transaction.  The Bank
of New York is the trustee for the certificates issued under the
facility.  Axis Capital Management acted as financial advisor to
the Company.

Javier Segovia, president, said, "We are pleased that the Company
was successful in extending its debt maturity while at the same
time adding financial flexibility to implement its business
strategy going forward."

Headquartered in Mexico City, Grupo TMM S.A. (NYSE: TMM)
(MEXVALORIS: TMMA) -- http://www.grupotmm.com/-- is a Latin
American multimodal transportation and logistics company.  Through
its branch offices and network of subsidiary companies, TMM
provides a dynamic combination of ocean and land transportation
services.

                        *    *    *

Standard & Poor's Ratings Services raised its corporate credit
rating on Grupo TMM S.A. to 'B-' from 'CCC.'  The rating was
removed from Creditwatch, where it was placed on Dec. 15, 2004.
S&P said the outlook is positive.


GUESS? INC: Enters Into Joint Venture Pact with Mexican Company
---------------------------------------------------------------
Guess?, Inc., has entered into a joint venture agreement for
Mexico with an affiliate of Grupo Axo, a Mexican company that
helps the development of internationally known brands, such as
Coach, DKNY and Tommy Hilfiger, in Mexico.

The joint venture, a majority of which is owned by Guess?, will
engage in the manufacture, wholesale distribution and retail sale
of Guess? fashion apparel, accessories and other related products
in Mexico.  The first Guess? retail store under the joint venture
opened in May 2006 in Mexico City and the second one opened in
Cancun in July 2006.

Paul Marciano, Co-Chairman and Co-CEO of Guess?, Inc., commented,
"The formation of our new Mexican joint venture is another step
forward in our international expansion.  The Guess? brand is
already well recognized in Mexico as we had an apparel license in
this region for over twenty years until 2004.  We believe Mexico
is an exciting opportunity for Guess?."  Mr. Marciano added, "We
have experienced incredible success with Guess? In Canada which
also started out as a joint venture in 1994 and is now a wholly
owned subsidiary of Guess? and one of our best performing regions.
We hope to achieve similar success with our joint venture partners
in Mexico."

Andres Gomez, Co-CEO of Grupo Axo, stated, "During our first year
of operations in Mexico, we plan to position Guess? as one of the
top fashion brands as we look to further expand the presence of
Guess? in Mexico."

Alberto Fasja Cohen, Co-CEO of Grupo Axo, added, "Our growth
strategy for Mexico over the next several years includes the
opening of several free standing stores and over 50 shop-in-shops
within leading department stores."

                       About Grupo Axo

Grupo Axo is a leader in the development of prestigious
international brands and products in Mexico, with primary focus on
the fashion and hospitality industries.  At Aug. 31, 2006 Grupo
Axo owned and operated 39 retail stores and over 300 shop-in-shops
throughout Mexico.

                        About Guess?

Guess?, Inc., -- http://www.guess.com-- designs, markets,
distributes and licenses a lifestyle collection of contemporary
apparel, accessories and related consumer products.  The company
owns and operates retail stores in the United States, Canada and
Mexico.  The company also distributes its products through better
department and specialty stores around the world.

                        *    *    *

As reported in the Troubled Company reporter on March 13, 2006,
Standard & Poor's Ratings Services revised its rating outlook on
Guess? Inc. to positive from stable.  At the same time, Standard &
Poor's affirmed the company's ratings, including its 'BB-'
corporate credit rating.


HENRY BRADFORD: Case Summary & 11 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Henry Mancini Bradford
        Latoya Venita Bradford
        P.O. Box 188260
        Sacramento, California 95818

Bankruptcy Case No.: 06-41568

Chapter 11 Petition Date: September 7, 2006

Court: Northern District of California (Oakland)

Judge: Randall J. Newsome

Debtors' Counsel: Marc Voisenat, Esq.
                  Law Offices of Marc Voisenat
                  1330 Broadway #1035
                  Oakland, CA 94612
                  Tel: (510) 272-9710

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtors' 11 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
   Patelco Credit Union                                  $30,000
   P.O. Box 2227
   Merced, CA 95344-0227

   American Express                                      $15,000
   P.O. Box 000l
   Los Angeles, CA 90096-000l

   Pacific Service Credit Union                          $15,000
   P.O. Box 8l9l
   Walnut Creek, CA 94596

   Pacific Gas & Electric                                 $1,700
   P.O. Box 8329
   Stockton, CA 95208

   City of Sacramento                                     $1,200
   P.O. Box 2770
   Sacramento, CA 958l2-2770

   Brinks Home Security                                   $1,200
   P.O. Box 6604l8
   Dallas, TX 75266-04l8

   Alameda Dept. of Child Support Services                $1,000
   P.O. Box 2072
   Oakland, CA 04604-2072

   Law Enforcement Systems, Inc.                            $600
   P.O. Box l348
   Long Island City
   New York, NY lll0l

   Waste Management of Alameda County                       $200
   l72 98th Avenue
   Oakland, CA 94603

   Ebmud                                                     $90
   P.O. Box 24055
   Oakland, CA 94623

   Smud                                                      $60
   P.O. Box l5555
   Sacramento, CA 958l8-8260


HUSKY ENERGY: Opens Ethanol Production Facility in Lloydminster
---------------------------------------------------------------
Husky Energy Inc. has officially opened its Lloydminster Ethanol
Plant in western Canada.  The facility's expected annual
production is 130 million litres of ethanol and 134,000 tonnes of
Distillers Dried Grain with Solubles, a high protein feed
supplement.

The Company expects to purchase 350,000 tonnes of wheat per year
from local producers for the manufacturing of ethanol.  Husky's
existing plant in Minnedosa, Manitoba, which has been producing
ethanol from prairie grains since 1981, is currently being
expanded from 10 to 130 million litres of ethanol per year.  The
new facility will become fully operational in mid-2007.

"This project is a world class example of the growing value of
biofuels and the important role cleaner burning fuels such as
ethanol can play," Hon. Lorne Calvert, the Premier of
Saskatchewan, said in the opening ceremony.  "Husky has shown its
confidence in the Saskatchewan economy with its major investment
in this plant and leadership in making these fuels increasingly
available to the public.  We are proud to have created a climate
in our province in which ethanol development and such investments
occur."

"The Lloydminster Ethanol Plant supports the Government of
Saskatchewan's initiatives to establish a viable biofuels industry
to enhance rural development.  Husky has created 25 new jobs at
the facility and will contribute to the local economy through the
purchase of grain from producers in the surrounding areas," John
C.S. Lau, the Company's president & chief executive officer said.

Ethanol is a high-octane, alcohol based fuel additive produced
from grain, including wheat.  Ethanol-blended fuels offer several
advantages over regular gasoline, including higher octane ratings,
reduced tail-pipe emissions and protection from gas-line freezing.

Headquartered in Calgary, Alberta, Husky Energy Inc. --
http://www.huskyenergy.ca/-- is an integrated energy and energy-
related company with reserves of about 430 million barrels of oil
and more than 2 trillion cu. ft. of natural gas.  The company has
about 500 gas stations in Canada, as well as heavy oil upgrader
Lloydmaster.  Husky Energy is publicly traded on the Toronto Stock
Exchange under the symbol HSE.

                          *     *     *

Husky Energy Inc.'s junior subordinated debt carries Moody's
Investor Service Ba1 rating.  Moody's placed the rating on
April 25, 2001 with a stable outlook.


ICOA INC: June 30 Working Capital Deficit Tops $7.2 Million
-----------------------------------------------------------
ICOA, Inc., posted a $91,102 net loss on $767,590 of net revenues
for the three months ended March 31, 2006, compared to a
$1.7 million net loss on $438,749 of revenues for the three months
ended March 31, 2005.

At March 31, 2006, the Company's balance sheet showed $5.3 million
in total assets and $8.8 million in total liabilities, resulting
in a $3.5 million stockholders' deficit.

The Company's March 31 balance sheet also showed strained
liquidity with $609,165 in total current assets available to pay
$7.8 million in total current liabilities coming due within the
next 12 months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?127a

                       Going Concern Doubt

Sherb & Co., LLP, in New York City, raised substantial doubt about
ICOA, Inc.'s ability to continue as a going concern after auditing
the Company's consolidated financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the Company's
operating losses and working capital deficit.

Headquartered in Warwick, Rhode Island, ICOA, Inc. (OTCBB:ICOA) --
http://www.icoacorp.com/-- sells, installs, supports, and
provides wired and wireless Ethernet and Internet access services,
primarily through Wi-Fi "hot spots" (public wireless local area
networks).  As of Dec. 31, 2004, ICOA owned or operated over 900
broadband access installations in high-traffic locations servicing
millions of annual patrons in 44 states.  In December 2005, ICOA
owned or operated over 1,500 broadband access installations.


INDUSTRIAL ENTERPRISES: Responds to Erroneous Schedule 13D Filing
-----------------------------------------------------------------
Industrial Enterprises of America, Inc., responds to the 13D
filing by Beryl Zyskind and disputes Mr. Zyskind's entitlement to
any shares as alleged in his filing.

The Company asserts that the filing by Mr. Zyskind is false and
misleading.  While the Company is currently in litigation
regarding Mr. Zyskind's claims, the amount of shares claimed to be
beneficially owned by Mr. Zyskind is outrageous and erroneous.

The Company has numerous defenses to Mr. Zyskind's claims
including, but not limited to:

   1. An executed release that states, "The parties hereto warrant
      that this Mutual Release is to be of the broadest nature and
      is to be dispositive of all matters between the parties
      hereto."

   2. That the $100,000 in question was not invested for the
      benefit of the Company and

   3. That Mr. Zyskind has already received appropriate
      compensation for his claims.

Management believes the timing of Mr. Zyskind's Schedule 13D
filing demonstrates that it was not done for the purpose of
complying with the securities law, but for the purpose of abusing
the securities laws as a weapon for gaining unfair advantage in
his civil litigation.  The Company has contacted the Enforcement
Division of the Securities and Exchange Commission regarding this
abuse of the securities law and is considering all of its legal
options at this time.  The Company will also be commencing legal
action to redress any potential harm to its shareholders.

A full-text copy of the Schedule 13D Filing is available for free
at http://ResearchArchives.com/t/s?1241

             About Industrial Enterprises of America

Headquartered in New York City, Industrial Enterprises of America,
Inc. (OTCBB:IEAM) is an automotive aftermarket supplier that
specializes in the sale of anti-freeze, auto fluids, and other
automotive additives & chemicals.  The company has distinct
proprietary brands that collectively serve the retail,
professional, and discount automotive aftermarket channels.

                       Going Concern Doubt

Beckstead and Watts, LLP, in Henderson, Nevada, raised substantial
doubt about Industrial Enterprises' ability to continue as a going
concern after auditing the Company's consolidated financial
statements for the year ended June 30, 2005.  The auditor pointed
to the Company's net losses from its inception, and its limited
operations, since the Company has not commenced planned principal
operations.


INLAND FIBER: Taps Perkins Coie to Assist in Oregon Asset Sale
--------------------------------------------------------------
Inland Fiber Group, LLC, and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for permission to
employ Perkins Coie LLP as their special counsel.

The Debtors tell the Court that Perkins Coie will assist in the
completion of the pending sale of their assets in Oregon.

The Debtors disclose that attorneys at Perkins Coie bill between
$230 and $440 per hour while paralegals and paralegal assistants
bill between $50 and $170 per hour.

Douglas R. Pahl, Esq., a partner at Perkins Coie, assures the
Court that his firm does not hold or represent any interest
adverse to the Debtors or their estates.

Headquartered in Klamath Falls, Oregon, Inland Fiber Group LLC,
aka U.S. Timberlands Klamath Falls LLC, and its affiliate Fiber
Finance Corp., grow trees and sell logs, standing timber, and
timberland.  The Debtors filed a chapter 11 petition on Aug. 18,
2006 (Bankr. D. Del. Case Nos. 06-10884 & 06-10885).  William P.
Bowden, Esq. at Ashby & Geddes P. A. and Glenn E. Siegal, Esq. at
Dechert LLP represent the Debtors in their restructuring efforts.
When the Debtors filed for protection from their creditors, Inland
Fiber reported $81,890,311 in total assets and $264,433,754 in
total liabilities while its debtor-affiliate,  Fiber Finance,
disclosed $1,048 in total assets and $263,074,983 in total debts.


ITEC ENVIRONMENTAL: Hires Rod Rougelot as Chief Executive Officer
-----------------------------------------------------------------
Itec Environmental Group, Inc., has hired Rod Rougelot as new
Chief Executive Officer.  Mr. Rougelot will also join Itec's Board
of Directors.

Mr. Rougelot brings to Itec over 20 years of extensive experience
in recycling, operations, finance, and mergers and acquisitions.
Upon graduating from Harvard Business School, Mr. Rougelot founded
Recycling Resource LLC, which rapidly became one of the leading
recycling competitors in California.  After Recycling Resource was
acquired by Tomra Pacific, Inc., Mr. Rougelot served as President
of the commercial division, building Tomra Pacific into one of the
largest beverage container recyclers in the United States.  Most
recently, Mr. Rougelot was engaged through Stone Yamashita
Partners as a strategic consultant with The Coca Cola Company.

"Our goal with the ECO2(TM) System is to transform the plastics
recycling industry by minimizing waste, reducing cost, and
increasing the quality of materials sold to our customers," Mr.
Rougelot stated.  "My near term focus is to complete our
fundraising efforts, build the plant to full capacity and rapidly
scale our operations.  We are in the process of building a
management team around Gary De Laurentiis, which will carry his
vision of the future of plastics recycling forward."

Gary De Laurentiis will continue to serve as Itec's Chairman of
the Board and in the newly created position of Chief Technology
Officer.  "With Rod joining the team, I have full confidence in
our ability to drive Itec forward.  The addition of Rod will
enable me to focus on our technology, scale our existing
operations and examine the technical aspects of our future
plants," added Mr. De Laurentiis.

                    About Itec Environmental

Headquartered in Riverbank, California, Itec Environmental Group
-- http://www.iteceg.com/-- offers solutions to pressing
environmental problems faced by public agencies and private
entities involved in the recycling of plastics.  In a research
partnership with Honeywell FM&T, Itec has developed and
successfully commercialized a new system for the recycling of
plastic containers.  Its proprietary Eco2(tm) System costs 30%
less to operate, uses no water, removes all contaminates and odors
from the finished flake, is closed-loop and thus non-polluting,
and produces no toxic by-products.

At June 30, 2006, Itec Environmental Group's balance sheet showed
a stockholders' deficit of $11,466,047, compared to a deficit of
$2,333,960 at Sept. 30, 2005.


INTERFACE INC: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B2 Corporate
Family Rating for Interface, Inc.

Additionally, Moody's held its probability-of-default ratings and
assigned loss-given-default ratings on these loans and bond debt
obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $117 million
   7.3% Sr. Notes
   due 2008             B2       B2       LGD3     49%

   $175 million
   10.375% Sr.
   Notes due 2010       B2       B2       LGD3     49%

   $135 million
   9.5% Sr. Sub.
   Notes due 2014       Caa1     Caa1      LGD5    89%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Interface Inc. -- http://www.interfacesustainability.com/-- is a
manufacturer and marketer of floor coverings and fabrics
headquartered in Atlanta, Georgia.


INTERSTATE BAKERIES: Wants to Sell Portland Property for $3.65MM
----------------------------------------------------------------
Interstate Bakeries Corporation and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Western District
of Missouri to sell their interests in a property located at 103
North Ivy Street and 115 North Cook Street, in Portland, Oregon,
to NBS Real Estate Capital Management, LLC, for $3,650,000, free
and clear of all liens other than certain permitted encumbrances
and subject to higher bids.

The Portland Property includes approximately 2.97 acres of land
and several structures, including a former bakery building
currently operated as a depot and a building currently operated
as a thrift store.  The Debtors are in the process of relocating
their remaining depot operations at the Property, Samuel S. Ory,
Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago,
Illinois, relates.

As part of their review of cost cutting opportunities, the
Debtors determined that the Property should be sold subject to:

   (a) a Restrictive Covenant prohibiting the use of the Depot as
       a commercial bakery for the 60-month period right after
       the closing of the Property's sale;

   (b) a Depot Lease, which provides for the option to lease back
       the Depot and certain of the surrounding Land to the
       Debtors for a period of up to six months to enable the
       Debtors to secure a more suitable, cost efficient space in
       the area from which to conduct their depot operations; and

   (c) a Retail Lease, which provides for the option to lease
       back the Thrift Store to the Debtors for a period of up to
       18 months to allow the Debtors to continue to operate
       their retail operations at the Property.

The Debtors undertook thorough marketing efforts to identify
potential buyers for the Property, with the assistance of the
joint venture of Hilco Industrial, LLC, and Hilco Real Estate,
LLC, Mr. Ory states.  As part of the evaluation process, the
Debtors considered the willingness of the interested buyers to
lease back the Property to them as they have determined that the
Depot and Retail Leases are necessary components of any agreement
to sell the Property.

Accordingly, the Debtors have decided to enter into an Asset
Purchase Agreement with NBS Real Estate to become the stalking
horse bidder for the Property.

NBS Real Estate has agreed to purchase the Property for
$3,600,000, subject to higher and better offers, the Restrictive
Covenant, the Depot Lease and the Retail Lease.  NBS Real Estate
has also made a $365,000 deposit for the proposed sale.

The Assets to be sold include all of the Debtors' rights in the
Property and any building, fixtures or equipment permanently
attached to the Property.  The Assets exclude the personal
property to the extent that the Debtors may choose to exercise
their options to enter into the Depot and Retail Leases.

The Restrictive Covenant will be recorded in the real property
records of Multnomah County, Oregon, prior to the recording of
the deed to the proposed purchaser.

Under the APA, the Debtors have the right to terminate the Depot
Lease and the Retail Lease at any time upon 30 days' prior
notice.  Monthly base rent under the Depot Lease is $4,000.  On
the other hand, monthly base rent under the Retail Lease is
$1,600 for the first nine months and $2,100 for the second nine
months.

Both the Depot and the Retail Leases provide that the Debtors are
responsible for the payment of utilities and NBS Real Estate is
responsible for the payment of real property taxes.

                        Bidding Procedures

To maximize the value realized by the Debtors' estates from the
sale of the Property, the Debtors will continue to seek and
solicit higher and better bids using the Court-approved bidding
procedures.

If more than one bid is received, the Debtors intended to hold an
auction on Sept. 22, 2006, at the office of Skadden, Arps, Slate,
Meagher & Flom LLP, in Chicago, Illinois.  The Debtors may change
the Auction Date in their sole discretion.

The minimum bid for the Property is $3,800,000.

The Debtors have agreed to:

   -- provide bid protection to NBS Real Estate in the form of a
      $73,000 termination fee; and

   -- reimburse NBS Real Estate's reasonable and documented
      expenses of up to $50,000.

In connection with the proposed sale, the Debtors seek the
Court's authority to pay the Multnomah County tax collector:

   -- $26,847 and $448 in principal for real and personal
      property taxes due and owing for the 2004-2005 tax year;

   -- interest, accruing at 6% per annum beginning on the date
      that statutory interest began to accrue on the past due
      balance; and

   -- no penalties with respect to all delinquent taxes of the
      Property; and

   -- no fees relating to the release of any tax liens recorded
      against the Property for the tax year 2004-2005 and all
      prior tax years.

The Debtors and the Successful Bidder will prorate 2006-2007 real
and personal property taxes as of the Closing Date in accordance
with the terms of the successful sale agreement.

A full-text copy of the NBS Purchase Agreement is available for
free at http://ResearchArchives.com/t/s?127b

                     Multnomah County Responds

Multnomah County, Oregon, filed a secured claim for $27,705, plus
interest, against the Debtors for unpaid ad valorem property
taxes for the tax year 2004 to 2005, Joanne B. Stutz, Esq., at
Evans & Mullinix, P.A., in Shawnee, Kansas, relates.

The Claim is not subject to any pending objection and is "deemed
allowed" under Section 502(a) of the Bankruptcy Code, Ms. Stutz
asserts.

Ms. Stutz maintains that pursuant to the Oregon Revised Statutes,
Multnomah County is entitled to interest on delinquent unpaid
taxes at the rate of 1-1/3% per month, or 16% per annum.  The
Debtors, however, asserted that any interest due on taxes
assessed against the Property should be capped at 6% per annum,
and that any interest assessed in excess of that rate should be
considered punitive and disallowed by the Court.  The Debtors
failed to provide any legal or factual basis for imposing that
cap, Ms. Stutz contends.

Ms. Stutz asserts that Multnomah County, as an oversecured
creditor, is entitled to receive the rate of interest dictated by
the statutes under which its lien arises, provided the charge can
be reasonably characterized as true interest rather than as
penalty.

Ms. Stutz emphasizes that Multnomah County has a strong interest
in collecting revenue due and owing so that it may meet the
obligations and costs of operating the government.  "Any interest
that accrues on Multnomah County's Claim pursuant to the
statutory interest rate is a valid part of the Claim."

Accordingly, Multnomah County asks the Court to deny the Debtors'
proposed sale to the extent:

   -- it proposes to reduce the interest rate on the Multnomah
      Claim to anything less than the allowed statutory interest
      rate provided by the Oregon Revised Statutes; and

   -- it seeks to sell the Property free and clear of liens where
      Multnomah County it has a claim secured by a lien on the
      Property and Multnomah County will not receive the total
      value of the secured claim, including any accrued
      interests.

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


INTERSTATE BAKERIES: Eyes $2.8 Mil. Wachovia Equipment Purchase
---------------------------------------------------------------
Interstate Bakeries Corporation and its debtor-affiliates seek
permission from the U.S. Bankruptcy Court for the Western District
of Missouri to purchase from Wachovia Financial Services, Inc.,
certain tractors and trailers with respect to the Schedule IV
Agreement for $2,854,123 in the aggregate.

Wachovia Financial Services, Inc., formerly known as First Union
Commercial Corporation, and the Debtors were parties to an
Equipment Lease dated May 19, 1992, three Schedules of Leased
Equipment, and 12 associated Acceptance Certificates.  Pursuant
to the Agreements, Wachovia provided the Debtors with tractors,
trailers, and route trucks.

In August 2005, the Debtors purchased certain equipment from
Wachovia pursuant to Schedule III Certificates, J. Eric Ivester,
Esq., at Skadden Arps Slate Meagher & Flom LLP, in Chicago,
Illinois, relates.

Mr. Ivester tells the Court that each of the three Certificates
under Schedule IV will reach the end of its basic term by
Nov. 30, 2006.  Pursuant to the Schedule IV Agreement, the
Debtors will purchase from Wachovia the tractors and trailers in
Certificates Nos. 1 through 3:

                                    Basic Term
   Certificate No.    Equipment      End Date    Purchase Price
   ---------------   -----------    ----------   --------------
          1          106 Tractors   07/19/2006       $1,786,029
          2           96 Trailers   09/18/2006          643,735
          3           27 Tractors   11/29/2006          424,359
                                                 --------------
                                         Total       $2,854,123
                                                 ==============

The salient terms of the Schedule IV Agreement are:

   (a) Pursuant to the Master Lease, the Debtors will reimburse
       $26,000 to Wachovia for reasonable legal fees and expenses
       related to the Lease;

   (b) If all Basic Rent for the Basic Term of a Schedule IV
       Certificate has not been paid to Wachovia as of the tender
       of the respective Purchase Price, the unpaid Basic Rent
       will be paid in immediately available funds simultaneously
       with the payment of the Purchase Price.

   (c) The Purchase Price for each Schedule IV Certificate will
       be reduced dollar for dollar by the amount of Post-Term
       Rent, if any, paid by the Debtors to Wachovia after the
       end of the Basic Term for that Schedule IV Certificate;

   (d) The sale of all Schedule IV Equipment pursuant to the
       Agreement will be on an "as is/where is" basis, without
       Any representation by Wachovia except as to title and with
       the Debtors to bear all costs of transfer;

   (e) Wachovia may withhold delivery of titles of certain
       Schedule IV Equipment until it has received in immediately
       available funds the Purchase Price, its Legal Expenses and
       all due and payable Basic Rent on that Schedule IV
       Certificate.

   (f) The Agreement will be in full and final satisfaction of
       all of the parties' rights, claims and defenses with
       respect to Schedule No. IV, the Schedule IV Certificates,
       the Equipment, and any related provisions of the Master
       Lease.  The Debtors waive their rights pursuant to Section
       547 of the Bankruptcy Code as to any transfers made with
       respect to the Master Lease, the Schedules and the
       Certificates.

   (g) The Agreement does not prejudice any other right, claim or
       argument of the Debtors, Wachovia, or any party-in
       interest.

   (h) Wachovia will withdraw, with prejudice, Claim Nos. 6910
       and 7803.  Wachovia will also amend Claim No. 6917 to
       reduce it to an unsecured claim for $387,646.

Mr. Ivester tells the Court that Schedule IV Equipment would be
purchased at a discount of approximately 42% to the wholesale
values for those equipment according to the National Automobile
Dealers Association Official Commercial Truck Guide June 2006.

Mr. Ivester contends that the tractors and trailers under the
Schedule IV Certificates are some of the youngest in the Debtors'
fleet and the least expensive to operate.  The Debtors anticipate
that they will continue to use the vehicles after the
consolidation activities.

                            TIP Responds

Martin J. Weis, Esq., at Dilworth Paxson, LLP, in Philadelphia,
Pennsylvania, relates that Transport International Pool, Inc.,
currently has eight trailers on lease with the Debtors.

TIP has asked the Debtors to provide it a list of the trailers
that they propose to purchase from Wachovia.  TIP wants to
confirm that none of the Wachovia trailers includes the trailers
it leases to the Debtors.

As of Sept. 20, 2006, the Debtors have not yet responded to TIP's
request, Mr. Weis informs the Court.

Hence, TIP asks the Court to deny the Debtors' request until:

   -- the Debtors can provide the requested information; and

   -- it has had undertaken a meaningful discovery to review the
      information and confirm that the trailers proposed to be
      purchase are not the ones it has leased.

If found that the trailers do not belong to TIP, TIP would not
object to the sale, Mr. Weis states.

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


JAMES QUILLEN: Case Summary & 19 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: James Paul Quillen, Jr.
        P.O. Box 387
        Parkton, MD 21120

Bankruptcy Case No.: 06-15938

Type of Business: The Debtor's affiliate, Cheasapeak Village, LLC,
                  filed for chapter 11 protection on August 24,
                  2006 (Bankr. D. Md. Case No. 06-15094).

Chapter 11 Petition Date: September 26, 2006

Court: District of Maryland (Baltimore)

Judge: Robert A. Gordon

Debtor's Counsel: Ronald J. Drescher, Esq.
                  Drescher & Associates
                  4 Reservoir Circle, Suite 107
                  Baltimore, MD 21208
                  Tel: (410) 484-9000
                  Fax: (410) 484-8120

Estimated Assets: $10 Million to $50 Million

Estimated Debts:  $10 Million to $50 Million

Debtor's 19 Largest Unsecured Creditors:

   Entity                                  Claim Amount
   ------                                  ------------
Cheasapeake Bank of Maryland                 $6,492,283
2001 East Joppa Road
Parkville, MD 21234

R.B. Young, LLC                              $5,600,000
P.O. Box 1825
Hagerstown, MD 21742

Citizens Bank of Pennsylvania                $4,300,000
2001 Market Street
Philadelphia, PA 19103

Mercantile Safe Deposit & Trust Co.          $2,710,162
Two Hopkins Plaza
Baltimore, MD 21202

Baltimore County Savings Bank                $2,394,785
P.O. Box 397
Perry Hall, MD 21128

Susquehanna Bank                             $2,387,643
A. Gregory Manuel, V.P.
100 West Road, Suite 101
Towson, MD 21204

PNC Bank, N.A.                               $1,641,337
P.O. Box 340777
Carmichaels, PA 15320-7777

NVR, Inc.                                    $1,513,000
10745 Birmingham Way
Woodstock, MD 21163

Countrywide                                  $1,478,750
7105 Corporate Drive
PTX - B36
Plano, TX 75024

Carrollton Bank                              $1,336,504
P.O. Box 24195
Halethorpe, MD 21227-0692

Farmers & Merchant's Bank                    $1,310,205
c/o Thomas C. Myers, Sr. V.P.
9320 Lakeside Boulevard
Owings Mills, MD 21117

American Fidelty Assurance Co.               $1,207,652
5101 North Classen Boulevard, Suite 610
Oklahoma City, OK 73118

GS Newberry LLC                              $1,133,333
15 West Aylesbury Road, Suite 700
Lutherville Timonium, MD 21093

Anne Louise Perlow                           $1,000,000
1829 Reisterstown Road, Suite 380
Pikesville, MD 21208

TriSun Financial                               $996,089
1777 Reisterstown Road
Baltimore, MD 21209

TOUSA Homes, Inc.                              $990,000
Technical Olympic USA, Inc.
555 Quince Orchard Road, Suite 530
Gaithersburg, MD 20878

Gordon Schaaf                                  $790,000
23 Romar Drive
Annapolis, MD 21403

CSX Realty                                     $750,000
c/o Henry Abrams, Esq.
Saul Ewing, LLP
500 East Pratt Street, Suite 900
Baltimore, MD 21202

Lennar                                         $520,000
10211 Wincopin Circle, Suite 300
Columbia, MD 21044


JMR CONTRACTORS: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: JMR Contractors Inc.
        P.O. BOX 4453
        Vega Baja, PR 00694

Bankruptcy Case No.: 06-03205

Chapter 11 Petition Date: September 6, 2006

Court: District of Puerto Rico (Old San Juan)

Judge: Enrique S. Lamoutte Inclan

Debtor's Counsel: Francisco R. Moya Huff, Esq.
                  BCO Popular Building, Suite 401 Tetuan 206
                  San Juan, PR 00901-1802
                  Tel: (787) 724-2447

Total Assets: $801,857

Total Debts:  $1,061,334

Debtor's 20 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
   Departamento De Hacienda                             $136,926
   P.O. Box 50074
   San Juan, PR 00902-6274

   Din Electrical Contractors, Inc.                     $101,440
   Call Box 2020, Suite 254
   Barceloneta, PR 00617

   Internal Revenue Services                             $69,374
   Mercantil Plaza Piso 9
   San Juan, PR 00918

   Corp. Del Fondo Del Seguro Del Estado                 $68,420

   R&G Premier                                           $66,880

   Jaw's Electrical Group                                $66,250

   Ferreteria M. Otero                                   $64,768

   E.D. Martinez, Inc.                                   $31,449

   Banco Popular De Puerto Rico                          $28,750

   JMR Construction                                      $25,779

   Industrialsprinkler Corp.                             $25,042

   Mercado Insulation Service                            $22,925

   Municipality of Vega Baja                             $13,299

   Lausell Inc.                                          $11,130

   Acha Trading Co., Inc.                                $10,028

   Perry Products Co.                                     $8,200

   Citibank                                               $7,870

   PR Pumping                                             $7,667

   Homigonera Mayaguezana, Inc.                           $7,075

   Buildex Corporation                                    $6,766


J.P. MORGAN: Moody's Junks Rating on Class L & M Certs.
-------------------------------------------------------
Moody's Investors Service downgraded the ratings of six classes
and affirmed the ratings of ten classes of J.P. Morgan Chase
Commercial Mortgage Securities Corp., Commercial Mortgage Pass-
Through Certificates, Series 2002-C3:

   -- Class A-1, $130,831,254, Fixed, affirmed at Aaa
   -- Class A-2, $395,432,000, Fixed, affirmed at Aaa
   -- Class X-1, Notional, affirmed at Aaa
   -- Class X-2, Notional, affirmed at Aaa
   -- Class B, $27,950,000, Fixed, affirmed at Aaa
   -- Class C, $9,316,000, Fixed, affirmed at Aaa
   -- Class D, $24,224,000, Fixed, affirmed at Aa2
   -- Class E, $9,316,000, Fixed, affirmed at Aa3
   -- Class F, $22,360,000, WAC, affirmed at Baa1
   -- Class G, $11,180,000, WAC, affirmed at Baa3
   -- Class H, $14,907,000, Fixed, downgraded to Ba2 from Ba1
   -- Class J, $13,043,000, Fixed, downgraded to B2 from Ba2
   -- Class K, $2,795,000, Fixed, downgraded to B3 from Ba3
   -- Class L, $3,727,000, Fixed, downgraded to Caa2 from B1
   -- Class M, $7,453,000, Fixed, downgraded to Ca from B2
   -- Class N, $4,658,000, Fixed, downgraded to C from Caa1

As of the Sept. 12, 2006 distribution date, the transaction's
aggregate certificate balance has decreased by 7.9% to $686.4
million from $745.3 million at securitization.   The Certificates
are collateralized by 84 mortgage loans ranging in size from less
than 1.0% to 5.8% of the pool, with the ten largest loans
representing 38.7% of the pool.  Nine loans, representing 14.6% of
the pool, have fully defeased and are secured by U.S. Government
securities.

One loan has been liquidated from the pool, resulting in a
realized loss of approximately $7.5 million.  Two loans,
representing 6.3% of the pool, are in special servicing, including
the third largest loan in the pool -- The First National Plaza
Portfolio Loan (4.9% of the pool).  Moody's is projecting
aggregate losses of approximately $20.7 million for the specially
serviced loans.  Ten loans, representing 14.4% of the pool, are on
the master servicer's watchlist.

Moody's was provided with full-year 2005 operating results for
89.1% of the pool.  Moody's loan to value ratio, excluding the
defeased loans, is 94.5%, compared to 90.2% at Moody's last review
in December 2005 and compared to 92.4% at securitization.  Moody's
is downgrading Classes H, J, K, L, M, and N due to realized
losses, decreased credit support and estimated losses on the
specially serviced loans.

The top three loans represent 15.9% of the outstanding pool
balance.  The largest loan is the ARC Portfolio B Loan
($39.8 million - 5.8%), which is secured by a portfolio of 14
manufactured housing communities containing 2,474 pads.  The
properties are located in seven states with concentrations in
Colorado (30.6%), Texas (29.6%) and Florida (13.7%).  The
communities were established between 1952 and 1999.  As it was at
the time of our last review, the loan is on the master servicer's
watchlist due to low debt service coverage.  Financial performance
since our last review, however, appears to be stable.  The
portfolio's overall occupancy was 84.8% as of year-end 2005,
compared to 82.9% at year-end 2004 but down from 94.1% at
securitization.  The loan sponsor is Affordable Residential
Communities, a major owner and manager of manufactured home
communities.  Moody's LTV is 97.6%, compared to 98.6% at last
review and compared to 88.3% at securitization.

The second largest loan is the Long Island Industrial Portfolio
III Loan ($35.9 million - 5.2%), which is secured by nine
industrial buildings totaling 700,660 square feet.  The properties
are located in Nassau and Suffolk Counties on Long Island, New
York.  The properties range in size from 21,900 to 186,000 square
feet and were constructed between 1964 and 1984. Since our last
review, the property's performance has stabilized given an
increase in occupancy and net operating income, which has led to
improved debt service coverage.  As a result the loan was removed
from the master servicer's watchlist.  Year end 2005 occupancy was
93.6%, compared to 82.9% at year-end 2004 and compared to 93.3% at
securitization.  Moody's LTV is 92.2%, compared to 93.3% at last
review and compared to 94.4% at securitization.

The third largest loan is the First National Plaza Portfolio Loan
($33.5 million - 4.9%), which is secured by three Class B office
buildings located in downtown Dayton, Ohio.  The buildings total
655,000 square feet. One building was built in 1956 and the other
two were built in 1972; all three were renovated in 1999.
Financial performance has declined since securitization due to
lease rollover and weak market conditions.  The portfolio's
overall occupancy was 59.0% as of June 2006, compared to 72.0% at
last review and compared to 86.0% at securitization.  Market
vacancy for Class B/C office space in downtown Dayton has
increased from 15.2% at securitization to approximately 22.4% at
year-end 2005.  The loan was transferred to the special servicer
in March 2006 because of imminent default.  The property has not
covered debt service for more than three months. Moody's LTV is in
excess of 100.0%.

The pool's collateral is a mix of retail (29.4%), office and mixed
use (24.0%), multifamily and MHC (19.1%), U.S. Government
securities (14.6%), industrial and self storage (10.9%) and
lodging (2.0%).  The collateral properties are located in 30
states.  The highest state concentrations are New York (14.6%),
New Jersey (10.5%), Ohio (9.6%), Virginia (7.7%) and Florida
(6.6%).  All the loans are fixed rate.


LEHMAN BROTHERS: Moody's Lowers Class K Note's Rating to Ba2
------------------------------------------------------------
Moody's Investors Service downgraded the ratings of two classes
and confirmed or affirmed the ratings of 14 classes of Lehman
Brothers Floating Rate Commercial Mortgage Trust, Commercial
Mortgage Pass-Through Certificates, Series 2005-LLF C4 as follows:

  -- Class A-1, $344,409,602, Floating, affirmed at Aaa
  -- Class A-2, $182,469,000, Floating, affirmed at Aaa
  -- Class X-1, Notional, affirmed at Aaa
  -- Class X-2, Notional, affirmed at Aaa
  -- Class X-1-FAIR, Notional, affirmed at Aaa
  -- Class X-1-HRO, Notional, affirmed at Aaa
  -- Class B, $24,328,000, Floating, affirmed at Aa1
  -- Class C, $22,117,000, Floating, affirmed at Aa2
  -- Class D, $13,270,000, Floating, affirmed at Aa3
  -- Class E, $13,270,000, Floating, affirmed at A1
  -- Class F, $13,270,000, Floating, affirmed at A2
  -- Class G, $13,270,000, Floating, confirmed at A3
  -- Class H, $15,482,000, Floating, confirmed at Baa1
  -- Class J, $14,376,000, Floating, downgraded to Baa3 from Baa2
  -- Class K, $25,438,398, Floating, downgraded to Ba2 from Baa3
  -- Class WFV, $4,900,000, Floating, affirmed at Baa3

The Certificates are collateralized by ten mortgage loans which
range in size from 1.2% to 17.9% of the aggregate pool balance
based on current principal balances.  As of the Sept. 15, 2006
distribution date, the aggregate certificate balance has decreased
by approximately 16.7% to $1.1 billion from $1.3 billion at
securitization due to the payoff of six loans initially in the
pool.  The Certificates receive principal payments on a senior
sequential basis.

Seven loans, representing 69.4% of the pool balance, have
performed in line with Moody's expectations, while three loans,
representing 30.6% of the pool balance, have performed below
Moody's expectations.  The loans performing below Moody's
expectations are the IMT Central Florida Portfolio Loan, the
Genesee Valley Center Loan and the Kaminski Minnesota Portfolio
Loan.  On Aug. 3, 2006 Moody's placed Classes G, H, J and K on
review for possible downgrade.  Moody's is downgrading Classes J
and K due to the poor performance of above referenced loans.

The HRO Hotel Portfolio Loan (17.9%) is secured by seven full
service hotels located in Connecticut, Virginia, Georgia,
Michigan, California and Maryland.  Four of the hotels are flagged
as Sheratons, two as Westins and one as a Hilton.  Moody's initial
evaluation anticipated improvement in the performance of the
collateral.  While 2005 performance did not measure up to
expectations partially due to renovations, net cash flow for the
trailing twelve months ended June 2006 was $19.6 million compared
to Moody's expectation of $20.9 million.  It is anticipated that
full year 2006 performance would approximate the Moody's
expectation.  The borrower is an affiliate of HEI Hospitality,
LLC.  The loan's LTV ratio is 63.3% the same as at securitization.
The loan is currently shadow rated Baa2, the same as at
securitization.

The Westfield Shoppingtown Valencia Loan (15.4%) is secured by a
465,300 square foot portion of an 858,200 square foot regional
mall located in Valencia, California.  Anchor tenants include J.C.
Penney, Macys and Sears. Collateral occupancy is 94.4%, compared
to 87.3% at securitization.   The borrower is an affiliate of The
Westfield Group, Inc.  Comparable tenant sales were $448 per
square foot for the 12-month period ending March 2006, compared to
$432 per square foot at securitization.   Based on Moody's
adjusted cash flow of $13.0 million and a normalized
capitalization rate, the loan to value ratio is 66.7%, compared to
67.0% at securitization.   Moody's current shadow rating is Baa2,
the same as at securitization.

The 110 William Street Loan (13.2%) is secured by an
867,900 square foot office building located in lower Manhattan.
Collateral occupancy is 95.3%, compared to 86.0% at
securitization.   The borrower is an affiliate of Swig Equities,
LLC and Longwing Real Estate Ventures, LLC.   Moody's LTV and
shadow rating are 67.4% and Baa2 respectively, the same as at
securitization.

The IMT Central Florida Portfolio Loan (10.8%) is secured by six
multifamily properties (2,008 units) located in Tampa, Orlando and
Jacksonville, Florida.   Portfolio occupancy as of March 31, 2006
was 96.9%, compared to 91.1% at securitization.   Actual net
operating income for calendar year 2005 and budgeted net operating
income for calendar year 2006 are significantly below Moody's
expectations due to declines in rent achievement and increases in
operating expenses.   The borrower is an affiliate of Investors
Management Trust and Lehman Brothers Real Estate Partners.   Based
on Moody's adjusted cash flow of $7.7 million and a normalized
capitalization rate, the LTV is 81.0%, compared to 64.7% at
securitization.   Moody's current shadow rating is B1, compared to
Baa2 at securitization.

The Genesee Valley Center Loan (10.4%) is secured by a 475,200
square foot portion of a 1.3 million square foot regional mall
located in Flint, Michigan.   Anchor tenants include Macys, Sears,
J.C. Penney and Burlington Coat Factory (not yet opened).  A
70,000 renovation/expansion of a former anchor store into street-
side stores was completed in early 2006.  Barnes & Noble leased
26,400 square feet of the renovation.  Collateral occupancy is
81.8% and leases out for signature amount to an additional 5.2%.
The borrower is an affiliate of Walton Street Capital, LLC.
Comparable tenant sales were $300 per square foot for the 12-month
period ending March 2006, compared to $340 per square foot at
securitization.  Based on Moody's adjusted cash flow of $9.2
million and a normalized capitalization rate, the LTV is 69.7%,
compared to 61.1% at securitization.  While the borrower has made
good, although slower than anticipated, progress in redeveloping
the center, significant credit concerns remain given the poor
economic outlook for the region.   Moody's current shadow rating
is Baa3, compared to Baa2 at securitization.

The Fairfield Inn by Marriott Portfolio Loan (10.1%) is secured by
18 limited service hotels located in eight states. The properties
are approximately 20 years old but were substantially renovated
between 2000 and 2004.  Collateral properties are located in
secondary markets in Connecticut (3), Maryland (3), New Hampshire,
Massachusetts, New Yor, Maine, Rhode Island and Vermont.  The
borrower is an affiliate of Olympus Real Estate Partners.
Performance for the trailing 12-month period ending August 2006
was in line with Moody's expectations.  Based on Moody's adjusted
cash flow of $12.2 million and a normalized capitalization rate,
the LTV is 64.2%, compared to 63.7% at securitization.   Moody's
current shadow rating is Baa2, the same as at securitization.

The Kaminski Minnesota Portfolio Loan (9.4%) is secured by 23
Class B office properties located in three office parks in the
Minneapolis-St Paul area.  Portfolio occupancy as of March 2006
was approximately 77%, compared to 80.6% at securitization. Actual
net operating income for calendar year 2005 and budgeted net
operating income for calendar year 2006 are substantially below
Moody's expectations.  The borrower is an affiliate of M.G.
Kaminski. Based on Moody's adjusted cash flow of $8.7 million and
a normalized capitalization rate, the LTV is 72.6%, compared to
66.1% at securitization.   Moody's current shadow rating is Ba2,
compared to Baa2 at securitization.   The borrower is exploring
redevelopment of portions of the collateral, which may result to a
near term payoff of the loan.


LEVITZ HOME: Wants to Reject Lease for Store No. 40203
------------------------------------------------------
Levitz Home Furnishings, Inc., and its debtor-affiliates seek
authority from the U.S. Bankruptcy Court for the Southern District
of New York to reject Store No. 40203, effective as of
Oct. 31, 2006, pursuant to Section 365 of the Bankruptcy Code.

Debtor Levitz Furniture Corp. is a party to a lease dated
Nov. 2, 1983, with Brittan Corner Shopping Center as landlord for
the premises located at 1119 Industrial Road in San Carlos,
California.

In accordance with the Sale Order, on Aug. 31, 2006, PLVTZ, LLC,
and The Pride Capital Group, as purchasers of substantially all of
the Debtors' assets, served on the Debtors an excluded lease
notice, which identified the San Carlos Lease for Store No. 40203
as an excluded lease.

Upon receipt of the Excluded Lease Notice, the Debtors reviewed
Store No. 40203 and determined that it no longer provides any
benefit to their estates or creditors, Nicholas M. Miller, Esq.,
at Jones Day, in New York, tells the Court.

Headquartered in Woodbury, New York, Levitz Home Furnishings, Inc.
-- http://www.levitz.com/-- is a leading specialty retailer of
furniture in the United States with 121 locations in major
metropolitan areas principally the Northeast and on the West Coast
of the United States.  The Company and its 12 affiliates filed for
chapter 11 protection on Oct. 11, 2005 (Bank. S.D.N.Y. Lead Case
No. 05-45189).  David G. Heiman, Esq., and Richard Engman, Esq.,
at Jones Day, represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they reported $245 million in assets and $456 million
in debts.  Jay R. Indyke, Esq., at Kronish Lieb Weiner & Hellman
LLP represents the Official Committee of Unsecured Creditors.
Levitz sold substantially all of its assets to Prentice Capital on
Dec. 19, 2005.  (Levitz Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


LIFESTYLE ENT: Case Summary & 27 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Lifestyle Enterprises, Inc.
        3025 M Street, Northwest
        Washington, DC 20007

Bankruptcy Case No.: 06-00317

Chapter 11 Petition Date: September 11, 2006

Court: District of Columbia (Washington, D.C.)

Judge: S. Martin Teel, Jr.

Debtor's Counsel: Steven H. Greenfeld, Esq.
                  Cohen, Baldinger & Greenfeld LLC
                  7910 Woodmont Avenue Suite 760
                  Bethesda, Maryland 20814
                  Tel: (301) 881-8300
                  Fax: (301) 881-8350

Estimated Assets: $100,000 to $500,000

Estimated Debts:  $1 Million to $10 Million

Debtor's 27 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
   Provident Bank                                       $328,672
   P.O. Box 2394
   Baltimore, MD 21203-2394

   Marblehead Mgmt., LLC                                $200,000
   2954 Burrland Lane
   The Plains, VA 20198

   DC Treasurer                                          $90,349
   Office of Tax and Revenue
   P.O. Box 7792
   Washington, DC 20044-7792

   Mabro $71,680

   ETRO                                                  $51,010

   Eastbanc/Georgetown Restructuring, LLC                $45,000

   Well's Fargo, LC                                      $29,373

   Kadcon                                                $23,477

   MBNA Bank, LC                                         $22,445

   Maxwell Reinstein Chartered                           $20,000

   Bank of America, LC                                   $15,990

   Bank of America - Visa                                 $9,114

   Mario Gerlin                                           $8,978

   CitiBusiness Visa                                      $8,920

   Temperley Lone                                         $7,554

   D Squared/2                                            $7,542

   Delta SkyMiles Amex                                    $6,696

   David Wals/T-Shirts SA                                 $6,945

   Modern Luxury, LLC                                     $5,428

   Essentiel                                              $4,949

   Helene Clement                                         $4,742

   G.Kay Kashmere                                         $4,726

   Stella Forest                                          $4,375

   Vivienne Westwood                                      $4,323

   Heyne Bogut                                            $4,230

   Capital One Platinum Business Visa                     $3,925

   Ellego                                                 $3,792


MARSH & MCLENNAN: Names M. Michele Burns as Mercer Chairman, CEO
----------------------------------------------------------------
Marsh & McLennan Companies, Inc., has named M. Michele Burns,
chief financial officer of MMC, to the position of chairman and
chief executive officer of Mercer Human Resource Consulting, an
MMC subsidiary and global leader for HR and related financial
advice and services.

Ms. Burns succeeds Michael Caulfield, who will be retiring.  Mr.
Caulfield will remain with the company until the end of the year
to ensure an orderly transition.  Moving into the role of CFO for
MMC is Matthew B. Bartley, who has served as MMC's treasurer since
2001.

Ms. Burns and Mr. Bartley will assume their new positions
effective immediately.

"We are pleased to be announcing these important changes to our
management team," said Michael G. Cherkasky, MMC president and
CEO.  "Michele brings a compelling mix of financial acumen and
managerial experience in professional services to her new role.
She has a proven track record of successfully leading large
professional teams, and her focus will be on driving Mercer HR's
growth and profitability while continuing to reinforce its
leadership position in HR consulting and HR products and
solutions."

Commenting on Matt Bartley's promotion to the role of MMC CFO, Mr.
Cherkasky continued: "Matt is a seasoned and extremely talented
finance professional with demonstrated strategic and leadership
skills.  He played a pivotal role in solidifying MMC's financial
condition during a critical period.  He brings to his new role an
intimate knowledge of the financial dynamics of MMC's operating
companies, and will be able to hit the ground running as a
significant contributor to MMC's financial recovery and growth."

Ms. Burns, 48, joined MMC in March 2006 as executive vice
president and chief financial officer.  A director of Wal-Mart
Stores, Inc. and Cisco Systems, Inc., she previously served as
executive vice president, chief restructuring officer, and chief
financial officer at Mirant Corporation following the company's
bankruptcy filing in 2003, where she spearheaded the development
of a new capital structure and business reorganization plan.
Joining Delta Air Lines in 1999 and named CFO in 2000, she managed
a global staff of more than 3,500 in finance, information
technology, business development, investor relations, and supply
chain, fleet and risk management.

"I look forward to leading Mercer Human Resource Consulting during
this exciting time in the company's history," Ms. Burns said.
"Mercer HR is the world leader in helping companies address their
human resource needs at a time when the dynamic role of human
capital is leading the conversation in countries and economies
around the globe.  Together, we will take this business to the
next level."

Ms. Burns began her career at Arthur Andersen in 1981, where she
held regional and national leadership roles in a number of
practices.  As a senior partner, she led Andersen's Southern
Region Federal Tax Practice, headed its U.S. Healthcare Practice
and its Southeastern Region Financial Services Practice, and
served on its Global Advisory Council. Ms. Burns graduated summa
cum laude from the University of Georgia with a bachelor's degree
in business administration and a master's degree in accountancy.

Mr. Bartley, 49, joined MMC as vice president and treasurer in
2001.  Since then, he has been instrumental in raising MMC's
financial profile in the public debt markets, marshalling its
financial resources, and adjusting its capital structure to meet
the changing requirements of its operating companies.  His
responsibilities have encompassed strategic corporate finance,
credit agency relationships, cash management and fiduciary
investments, pension funding and investments, as well as risk
management and business continuity planning.

"The CFO role provides a great opportunity for me to help MMC meet
and exceed its financial goals," Mr. Bartley said.  "Over the past
two years, we have made tremendous progress furthering MMC's
financial recovery.  Going forward, we have set our sights on
taking our leading brands to the next level by securing a solid
financial platform from which to operate and grow profitably."

Mr. Bartley served for nearly 10 years in senior international
treasury and tax positions at PepsiCo, Inc., where he was
responsible for global strategic transaction planning and
execution across international operating businesses.  He
subsequently served as vice president of taxes at Engelhard
Corporation, a multinational specialty chemicals and precious
metals company, with responsibility for tax and transaction
planning, execution and reporting.  He began his career as a tax
attorney with Morgan, Lewis and Bockius, a global law firm
headquartered in Philadelphia. Mr. Bartley holds a bachelor's
degree from the University of Pennsylvania, a master's degree from
Yale University, and a law degree from the Columbia University
School of Law.

"On behalf of the entire management team, I would like to thank
Michael Caulfield for his excellent leadership of Mercer Human
Resource Consulting during this critical period," Mr. Cherkasky
continued.  "We wish him all the best in his retirement."

                     About Marsh & McLennan

Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a
global professional services firm with annual revenues of
approximately $12 billion.  It is the parent company of Marsh, the
world's leading risk and insurance services firm; Guy Carpenter,
the world's leading risk and reinsurance specialist; Kroll, the
world's leading risk consulting company; Mercer, a major global
provider of human resource and specialty consulting services; and
Putnam Investments, one of the largest investment management
companies in the United States.  Approximately 55,000 employees
provide analysis, advice, and transactional capabilities to
clients in over 100 countries.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary 'BBB'
senior debt, 'BBB-' subordinated debt, and 'BB+' preferred stock
ratings to Marsh & McLennan's unlimited universal shelf.  Standard
& Poor's also affirmed its 'BBB' counterparty credit rating on
MMC.  The outlook in negative.


MEDAREX INC: Seeks Default Waiver from 2.25% Sr. Note Holders
-------------------------------------------------------------
Medarex, Inc., is soliciting consents from the holders of its
outstanding 2.25% Convertible Senior Notes in the aggregate
principal amount of $150 million due May 15, 2011.

The consent solicitation is relative to an amendment of certain
reporting requirements and a waiver of defaults and events of
default in the indenture governing the Notes.

As reported in the Troubled Company Reporter on Sept. 5, 2006 the
Company received a notice of default from Citadel Equity Fund
Ltd., holder of more than 25% in principal amount of the
outstanding Notes.  Citadel cited the Company's failure to file
its Quarterly Report on Form 10-Q for the quarter ended
June 30, 2006, as the basis for the notice of default.  The notice
of default further provides that if the Company does not file its
Form 10-Q by Oct. 24, 2006, an event of default under the
Indenture will exist.

The Company disclosed that the proposed amendment to the indenture
will provide it with additional time to comply with the reporting
requirements and would obviate the need to make any further
filings or furnish any additional reports or information pursuant
to the indenture's reporting provisions.  The proposed amendment
also includes a waiver of all defaults and events of default under
the indenture's reporting requirements.

The Company will make cash payments to:

    (i) consenting holders of the Notes as of Sept. 21, 2006 of
        $2.50 per $1,000 in aggregate principal amount of the
        Notes held by the consenting holders, upon or promptly
        following execution of the supplemental indenture for the
        Notes; and

   (ii) all record holders of the Notes on Oct. 24, 2006 of an
        additional $10 per $1,000 in aggregate principal amount of
        the Notes, if the Company has not filed an amendment to
        its 2005 Form 10-K containing restated financial
        statements, an amendment to its quarterly report on Form
        10-Q for the quarter ended March 31, 2006 and its Second
        Quarter Form 10-Q, by the close of business on
        Oct. 24, 2006.

The consent solicitation will expire at 5:00 p.m. New York City
time on Oct. 4, 2006.

The Company has retained Goldman, Sachs & Co. to serve as the
Solicitation Agent and Global Bondholder Service Corporation to
serve as Information Agent and Depositary for the consent
solicitation.  Requests for documents may be made directly to
Global Bondholder Services Corporation by telephone at 866-873-
6300 (toll free) or 212-430-3774 (banks and brokers), or in
writing at 65 Broadway, Suite 723, New York, New York 10006,
Attention: Corporate Actions.  Questions regarding the
solicitation of consents may be directed to Goldman, Sachs & Co.
at 800-828-3182 (toll free) or 212-902-9077 (collect), Attention:
Credit Liability Management Group.

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


MEGA BRANDS: Moody's Assigns Loss-Given-Default Ratings
-------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency revised its Ba3 Corporate
Family Rating to B1 for MEGA Brands Inc.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans facilities:

   Issuer: MEGA Brands Inc.

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2010                  Ba3      Ba2     LGD2       24%

Sr. Sec. Term Loan A
Due 2010                  Ba3      Ba2     LGD2       24%

   Issuer: Mega Blocks US

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2010                  Ba3      Ba2     LGD2       24%

   Issuer: Mega Blocks Finco

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Term Loan B
Due 2012                  Ba3      Ba2     LGD2       24%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Montreal, Canada-based Mega Brands Inc. fka Mega Bloks Inc. --
http://www.megabloks.com/-- distributes a range of toys, puzzles,
and craft-based products worldwide.


MERIDIAN AUTOMOTIVE: Disclosure Statement Hearing Set on Oct. 10
----------------------------------------------------------------
Meridian Automotive Systems, Inc., and its eight debtor-
affiliates ask the U.S. Bankruptcy Court for the District of
Delaware to approve their Disclosure Statement explaining their
Fourth Amended Joint Plan of Reorganization as containing adequate
information within the meaning of Section 1125(a)(1) of the
Bankruptcy Code.

The Court will convene a hearing on Oct. 10, 2006, to consider
approval of the Disclosure Statement.

Edward J. Kosmowski, Esq., at Young Conaway Stargatt & Taylor,
LLP, in Wilmington, Delaware, notes that Section 1125 requires
the Court to approve a written disclosure statement prior to
allowing a debtor to solicit acceptances for a plan of
reorganization.  To approve a disclosure statement, the Court
must find that the disclosure statement contains adequate
information defined as "information of a kind, and in sufficient
detail . . . that would enable a hypothetical reasonable investor
typical of holders of claims or interests [of the Debtors] . . .
to make an informed judgment about the plan."

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. 39;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MERIDIAN AUTOMOTIVE: Wants Solicitation Procedures Established
--------------------------------------------------------------
Meridian Automotive Systems, Inc., and its debtor-affiliates ask
the U.S. Bankruptcy Court for the District of Delaware to
establish uniform procedures for the solicitation and tabulation
of votes to accept their Fourth Amended Joint Plan of
Reorganization.

                       Solicitation Packages

After the Court approves the Disclosure Statement, the Debtors
propose to distribute or cause to be distributed solicitation
packages to those Holders of Claims in Classes entitled to vote
on the Plan, containing copies of:

    (a) a CD-ROM containing the Disclosure Statement, together
        with the Plan and other exhibits;

    (b) the Solicitation Order, excluding its exhibits;

    (c) a notice of the Confirmation Hearing;

    (d) a ballot together with a return envelope; and

    (e) other materials as the Court may direct or approve,
        including supplemental solicitation materials the Debtors
        may file with the Court.

With respect to any transferred Claim, the Debtors propose that
the transferee will be entitled to receive a Voting Solicitation
Package and cast a ballot on account of the transferred Claim
only if:

    (a) all actions necessary to effect the Claim transfer have
        been completed by the Record Date; or

    (b) the transferee files, not later than the Record Date:

        * the required documentation to evidence that transfer;
          and

        * a sworn statement of the transferor supporting the
          validity of the transfer.

In the event a Claim is transferred after the transferor has
executed and submitted a ballot to the voting agent, The Trumbull
Group, LLC, the transferee will be bound by any vote made on the
ballot by the Holder as of the Record Date of the Transferred
Claim.

Holders of Claims in the Unimpaired Non-Voting Classes will
receive:

    (a) the Confirmation Hearing Notice; and

    (b) a notice of their non-voting status under the Plan.

The Debtors propose that they not be required to transmit a
solicitation package to the Rejecting Classes, as these Classes
are presumed to have rejected the Plan.

The Debtors expect to commence distribution of the Voting
Solicitation Packages, the Unimpaired Notices of Non-Voting
Status, and the Rejecting Class Notices no later than six days
after the Court approves the proposed Solicitation Procedures.

Any party wishing to obtain a copy of the Disclosure Statement
and the Plan can do so by accessing the documents on the
Internet, free of charge, at http://www.trumbullgroup.com/or by
contacting the Voting Agent to obtain a copy of the documents at
the Debtors' expense.

                            Ballot Forms

The Debtors propose to distribute to creditors one or more ballot
forms based on Official Form No. 14, but have been modified to
address the particular aspects of the Debtors' Chapter 11 cases.

The appropriate ballot forms, along with return envelopes, will
be distributed to the Voting Classes:

        Class     Type of Claim
        -----     -------------
          3       Prepetition First Lien Claims
          4       Prepetition Second Lien Claims
          5       General Unsecured Claims

The Plan designates four claim categories as unclassified for
purposes of voting on and receiving distributions under the Plan.
The Holders of these unclassified Claims are not entitled to vote
to accept or reject the Plan:

    1. Administrative Expense Claims,
    2. DIP Claims,
    3. Priority Tax Claims, and
    4. Professional Compensation Claims.

                          Voting Deadline

The Debtors ask the Court to fix November 10, 2006, at 4:00 p.m.
Eastern Time, as the deadline by which all original ballots must
be properly executed, completed, delivered to, and received by
the Voting Agent.

                        Temporary Allowance

The Debtors propose that if any party wishes to have its Claim
allowed for voting purposes, that party must serve on the Debtors
and file with the Court no later than 10 days before the Voting
Deadline a motion temporarily allowing the Claim for purposes of
voting.

The Debtors ask the Court to fix November 7, 2006, as the date to
consider all those motions.

                       Confirmation Hearing

The Debtors ask the Court to fix November 17, 2006, at 10:30 a.m.
Eastern Time, as the Plan Confirmation Hearing, which may be
continued from time to time without further notice to creditors
or other parties-in-interest.

The Debtors propose to publish the Confirmation Hearing Notice in
The Detroit Free Press, USA Today, and the national edition of
The Wall Street Journal, not less than 11 days after the
Solicitation Commencement Date.

                   Confirmation Objection Deadline

The Debtors ask the Court to fix Nov. 10, 2006, at 4:00 p.m.
Eastern Time, as the last date for filing and serving written
objections to the confirmation of the Plan.

Objections, if any, to the confirmation of the Plan must:

    (i) be made in writing;

   (ii) state the name and address of the objecting party and the
        nature of the Claim or the party's interest;

  (iii) state with particularity the legal and factual basis and
        nature of any objection to the Plan; and

   (iv) be filed with the Court, together with proof of service
        and served so that they are received on or before the
        Objection Deadline by:

           * the Debtors' counsel,
           * the United States Trustee, and
           * the Creditors' Committee's counsel.

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. 39;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MERIDIAN AUTOMOTIVE: Court Okays DIP Financing Amendments
---------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware permits
Meridian Automotive Systems, Inc., and its debtor-affiliates to
amend the DIP Credit Facility, as modified by representations made
by the Debtors' counsel at last week's hearing.

Judge Walrath authorizes the Debtors to increase, by 0.25%, the
interest rate accruing on all borrowings under the DIP Credit
Facility.

The modified Amended DIP Credit Facility provides that:

    -- The Global EBITDAR for the Global Entities for each rolling
       12-fiscal month period ending on the last day of each
       fiscal month will not be less than $40,000,000;

    -- Each Eurodollar Loan will bear interest at a rate per annum
       equal to the Adjusted LIBO Rate for such Interest Period in
       effect for such Borrowing plus 4.00%; and

    -- The Maturity Date of the DIP Facility is extended to the
       earlier of:

          (a) December 31, 2006, provided that it will be
              automatically extended to February 15, 2007, if the
              Borrower will have timely paid to the Agent for the
              ratable benefit of the lenders, an extension fee in
              an amount equal to 0.25% multiplied by the Total
              Commitment as of the Scheduled Termination Date; and

          (b) the Consummation Date, if any.

A full-text copy of the Court-approved Amended DIP Credit Facility
is available at no charge at http://ResearchArchives.com/t/s?127c

In connection with their Fourth Amended Joint Plan of
Reorganization and in light of recent Original Equipment
Manufacturer production cutback and their delayed emergence from
bankruptcy, the Debtors proposed to amend their Revolving Credit
and Guaranty Agreement dated June 30, 2005.

The Debtors wanted to ensure that they would have sufficient
working capital for the duration of their Chapter 11 cases.

Credit Suisse, Cayman Islands Branch, serves as Administrative
Agent while General Electric Capital Corporation serves as
Collateral Agent under the DIP Credit Facility.

Specifically, pursuant to Sections 105(a) and 363(b) of the
Bankruptcy Code and the Final DIP Order, the Debtors asked the
Court for permission to:

    (a) amend the DIP Credit Facility to allow for a contingent
        increase to the interest rate on certain borrowings; and

    (b) pay certain fees to the Administrative Agent and DIP
        Lenders in connection with an Amended DIP Credit Facility.

Robert S. Brady, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that the DIP Lenders have agreed
to waive the Borrowing Base limitations of the current DIP Credit
Facility and allow the Debtors to borrow up to the full
$75,000,000 Total Commitment.

The Debtors covenant that they will not permit cumulative Global
EBITDAR for the Global Entities for each following 12-fiscal
month period ending on the last day of each fiscal month to be
less than $35,000,000.

The Maturity Date of the DIP Facility is extended to the earlier
of:

    (a) December 31, 2006, provided that it will be automatically
        extended to March 31, 2007, if the Borrower will have
        timely paid to the Agent for the ratable benefit of the
        lenders, an extension fee in an amount equal to 0.25%
        multiplied by the Total Commitment as of the Scheduled
        Termination Date; and

    (b) the Consummation Date, if any.

The Borrower will pay a $187,500 fee to the Agent for distribution
to the Lenders.

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. 39;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


MERRIL LYNCH: Moody's Assigns Ba2 Rating to Class B Certificate
---------------------------------------------------------------
Moody's Investors Service assigned an Aaa rating to the senior
certificate issued by Merrill Lynch Mortgage Investors Trust 2006-
SD1 and ratings ranging from Aa2 to Ba2 to the subordinate
certificates in the deal.

The securitization is backed by Wilmington Finance, Inc., AIG
Federal Savings Bank, Ownit Mortgage Solutions Inc., and other
mortgage lenders originated, adjustable-rate (75%) and fixed-rate
(25%), scratch & dent mortgage loans acquired by Merrill Lynch
Mortgage Lending Inc.  The ratings are based primarily on the
credit quality of the loans and on protection against credit
losses by subordination, excess spread, and overcollateralization.

The rating also benefit from an interest-rate swap provided by
Bear Stearns Financial Products Inc.  Moody's expects collateral
losses to range from 9% to 9.50%.

Wilshire Credit Corporation will service the loans.  Moody's has
assigned Wilshire its servicer quality rating of SQ2+ as a
servicer of subprime mortgage loans.

These are Moody's complete rating actions:

   * Merrill Lynch Mortgage Investors Trust

   * Mortgage Loan Asset-Backed Certificates, Series 2006-SD1

                 Cl. A Certificate, Assigned Aaa
                 Cl. M-1 Certificate, Assigned Aa2
                 Cl. M-2 Certificate, Assigned A2
                 Cl. M-3 Certificate, Assigned Baa2
                 Cl. B Certificate, Assigned Ba2


MEYER'S BAKERIES: Court Sets November 6 as Claims Bar Date
----------------------------------------------------------
The Honorable James G. Mixon of the U.S. Bankruptcy Court for the
Western District of Arkansas set Nov. 6, 2006, as the last day for
persons owed money by Meyer's Bakeries Inc. and its debtor-
affiliates to file proofs of claim.

Proofs of claim must be filed with or mailed to:

   Clerk of Court
   U.S. Bankruptcy Court
   Western District of Arkansas
   300 W. Second Street
   Little Rock, AR 72201

Headquartered in Hope, Arkansas, Meyer's Bakeries Inc. produces
English muffins, bagels, bread sticks, energy bars, and hearth
baked specialty breads and rolls.  The Company and its affiliates
filed for chapter 11 protection on Feb. 6, 2005 (Bankr. W.D. Ark.
Case No. 05-70837).  On March 23, 2006, the Debtors case was
converted into a chapter 7 proceeding (Bankr. W.D. Ark. Case No.
05-70837).  Charles T. Coleman, Esq., Judy Simmons Henry, Esq.,
and Kimberly Wood Tucker, Esq., at Wright, Lindsey & Jennings LLP
represent the Debtors.  Richard L. Cox is trustee overseeing the
Debtors' liquidation.  The Trustee is represented by his firm
RICHARD COX, P.A. in Hot Springs, AR.  No Official Committee of
Unsecured Creditors has been appointed in this case.  When the
Company filed for protection from its creditors, it listed total
assets of $44,226,139 and total debts of $48,699,754.


METABOLIFE INT'L: PI Claimants Want Stay Lifted to Continue Suit
----------------------------------------------------------------
Claimants Jerome Kreutzer and Susana Vega Kreutzer ask the U.S.
Bankruptcy Court for the Southern District of California to lift
the automatic stay to allow prosecution of personal injury claims
against MII Liquidation, Inc., fka Metabolife International, Inc.

On July 8, 1999, Jerome suffered a massive stroke while showering.
The neurologist who treated him concluded that his stroke was
causally related to the dietary supplement Metabolife 356 that
Jerome had been taking consistently over the preceding months.

On June 26, 2000, Jerome and his wife Susana sued Metabolife,
together with its sales representatives Richard Tow and Wendy Tow
in the San Diego Superior Court.  The Tows sold the product to
Jerome and made various representations concerning its quality and
safety.

William M. Low, Esq., at Higgs, Fletcher & Mack, LLP, verified
that the claims alleged by the Kreutzers' complaint were all
covered by various insurance policies collectively exceeding
$40 million.

Thereafter, on June 30, 2005, while the Kreutzers' state action
was pending in the state coordinated proceeding, Metabolife filed
for bankruptcy.

Because Metabolife has adequate insurance coverage to pay any
possible judgment on the Kreutzers' claim, there would be no
prejudice to Metabolife or its estate from continued prosecution
of the state court action, especially since the Kreutzers have
stipulated to collect any possible judgment solely from the
insurance carrier.

Headquartered in San Diego, California, Metabolife International,
Inc. -- http://www.metabolife.com/-- sells dietary supplements
and management products in grocery, drug and mass retail locations
nationwide.  The Company and its subsidiary, Alpine Health
Products, LLC, filed for chapter 11 protection on June 30, 2005
(Jointly Administrated Under Bankr. S.D. Calif. Case No.
05-06040).  David L. Osias, Esq., and Deb Riley, Esq., at Allen
Matkins Leck Gamble & Mallory LLP, represent the Debtors in their
chapter 11 cases.  When the Debtors filed for protection from
their creditors, they listed $23,983,112 in total assets and
$12,214,304 in total debts.


MILLENNIUM BIOTECH: Has $4.5 Million Equity Deficit at June 30
--------------------------------------------------------------
Millennium Biotechnologies Group, Inc., filed its second quarter
financial statements for the three months ended June 30, 2006,
with the Securities and Exchange Commission.

The Company reported a $4,011,701 net loss on $200,898 of net
revenues for the three months ended March 31, 2006, compared to a
$1,053,937 net loss on $159,169 of revenues for the three months
ended March 31, 2005.

At March 31, 2006, the Company's balance sheet showed $1.2 million
in total assets and $5.7 million in total liabilities, resulting
in a $4.5 million stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $1.1 million in total current assets available to pay $5.6
million in total current liabilities coming due within the next 12
months.

A Full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1259

                       Going Concern Doubt

Bagell, Josephs & Company, LLC, in Gibbsboro, New Jersey, raised
substantial doubt about Millennium Biotechnologies Group, Inc.'s
ability to continue as a going concern after auditing the
Company's consolidated financial statements for the years ended
Dec. 31, 2005, and 2004.  The auditor pointed to the Company's
operating loses and accumulated deficit.

Millennium Biotechnologies Group, Inc., fka Regent Group, Inc.,
operates through its subsidiary Millennium Biotechnologies, Inc.,
sells nutraceutical supplements, RESURGEX SELECT(TM), RESURGEX(R),
and RESURGEX PLUS(R).  These products are used by immuno-
compromised individuals undergoing medical treatment for chronic
debilitating diseases like cancer, Acquired Immune Deficiency
Syndrome, and hepatitis, as well as healthy people searching for
proper nutrition.


MULTIPLAN INC: Extends Partnership with Health Net
--------------------------------------------------
Health Net, Inc., has selected MultiPlan, Inc., to provide a
comprehensive Electronic Data Interchange-based service called
"Single Dynamic Point of Transfer," or SDPOT, for managing the
routing of medical claims to and from its leased networks and
various cost management vendors.

"Health Net's concept is an ideal showcase for our triple
competencies of network, negotiation and technology," said Warren
Handelman, MultiPlan's executive vice president of marketing.

"Today over 90% of the claims we receive each year are submitted
via EDI, and fully 80% of these are routed to and from other cost
management strategies, if needed, after network re-pricing has
been attempted."

On an annual basis, MultiPlan receives more than 37 million claims
totaling more than $30 billion in original billed charges for re-
pricing through The MultiPlan Network.

In addition to its network of over 500,000 directly-contracted
healthcare providers, MultiPlan offers its clients a fee
negotiation service that delivers unit cost reductions on claims
not covered by the network.  The services are integrated, so that
a claim not re-priced through the network can be immediately
routed to the negotiation team if eligible.  This removes at least
a day from the process of routing claims to and from separate
negotiation and network vendors. About MultiPlan

MultiPlan Inc. -- http://www.multiplan.com/-- serves as a single
gateway to a host of primary, complementary and out-of-network
strategies for managing the financial risks associated with
healthcare claims.  Clients include large and mid-sized insurers,
third-party administrators, self-funded plans, HMOs and other
entities that pay claims on behalf of health plans.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Moody's Investors Service assigned a B2 rating to the proposed
$360 million add-on Senior Secured Term Loan of MultiPlan, Inc.
Moody's also affirmed the B2 Corporate Family Rating, the B2
rating on the existing senior secured facility and the Caa1 rating
on the company's senior subordinated notes.

As reported in the Troubled Company Reporter on Sept. 25, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' counterparty
credit rating on MultiPlan, Inc., and removed it from CreditWatch
with negative implications, where it was placed on Aug. 31, 2006.
Standard & Poor's outlook on MultiPlan is negative.  At the same
time, Standard & Poor's assigned its 'B+' rating to MultiPlan's
proposed 6.5-year, $360 million senior secured bank loan due 2013.


MULTIPLAN INC: To Acquire Private Healthcare Systems
----------------------------------------------------
MultiPlan, Inc., will acquire Private Healthcare Systems, Inc.,
creating the industry's most comprehensive medical cost management
provider.  The transaction is expected to close early to mid
fourth quarter, 2006, subject to satisfaction of closing
conditions, including customary regulatory approvals.  Financial
terms were not disclosed.

Established in 1985 as a collaboration of mid-sized commercial
insurance companies seeking to develop competitive managed care
programs, PHCS maintains the nation's largest proprietary primary
PPO network and is the second largest independent care management
provider in the country.  The company contracts with nearly
450,000 providers and serves over 16 million health plan members.

"PHCS joins the MultiPlan family at the right time for our
industry," said Mark Tabak, MultiPlan's Chief Executive Officer.
"The addition of their national primary PPO network to our
comprehensive product line creates an end-to-end solution for
controlling rising healthcare costs while maintaining employee
choice.  Together, we give healthcare providers access to patients
from the country's most diverse base of healthcare payers, and in
exchange deliver to payers the provider financial arrangements
that help them drive more savings from more medical claims."

MultiPlan will continue to operate PHCS under the PHCS Network
brand, as the national primary PPO network offering of MultiPlan
working in concert with MultiPlan's complementary network,
specialty transplant network, fee negotiation and claim routing
services.

Added Joseph Driscoll, PHCS President and CEO, "PHCS and MultiPlan
have highly complementary solutions that enable us immediately to
enhance the value we offer to our respective clients.  MultiPlan
gives our clients access to additional services and technology,
and we strengthen MultiPlan's position with medium and small
payers that lease-rather than own-their primary PPO networks."

MultiPlan Inc. -- http://www.multiplan.com/-- serves as a single
gateway to a host of primary, complementary and out-of-network
strategies for managing the financial risks associated with
healthcare claims.  Clients include large and mid-sized insurers,
third-party administrators, self-funded plans, HMOs and other
entities that pay claims on behalf of health plans.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 26, 2006,
Moody's Investors Service assigned a B2 rating to the proposed
$360 million add-on Senior Secured Term Loan of MultiPlan, Inc.
Moody's also affirmed the B2 Corporate Family Rating, the B2
rating on the existing senior secured facility and the Caa1 rating
on the company's senior subordinated notes.

As reported in the Troubled Company Reporter on Sept. 25, 2006,
Standard & Poor's Ratings Services affirmed its 'B+' counterparty
credit rating on MultiPlan, Inc., and removed it from CreditWatch
with negative implications, where it was placed on Aug. 31, 2006.
Standard & Poor's outlook on MultiPlan is negative.  At the same
time, Standard & Poor's assigned its 'B+' rating to MultiPlan's
proposed 6.5-year, $360 million senior secured bank loan due 2013.


NATIONSTAR HOME: Moody's Assigns Low-B Ratings on Two Sub. Certs.
-----------------------------------------------------------------
Moody's Investors Service assigned an Aaa rating to the senior
certificates issued by Nationstar Home Equity Loan Trust 2006-B
and ratings ranging from Aa1 to Ba2 to the subordinate
certificates in the deal.

The securitization is backed by Nationstar Mortgage originated
adjustable-rate (56%) and fixed-rate (44%) subprime mortgage
loans.  The ratings are based primarily on the credit quality of
the loans, and on the protection from subordination, excess
spread, overcollateralization, and an interest rate swap
agreement.  Moody's expects collateral losses to range from 5.45%
to 5.95%.

Nationstar Mortgage LLC, will service the loans.

        Issuer: Nationstar Home Equity Loan Trust 2006-B

                     Cl. AV-1, Assigned Aaa
                     Cl. AV-2, Assigned Aaa
                     Cl. AV-3, Assigned Aaa
                     Cl. AV-4, Assigned Aaa
                     Cl. M-1, Assigned Aa1
                     Cl. M-2, Assigned Aa2
                     Cl. M-3, Assigned Aa3
                     Cl. M-4, Assigned A1
                     Cl. M-5, Assigned A2
                     Cl. M-6, Assigned A3
                     Cl. M-7, Assigned Baa1
                     Cl. M-8, Assigned Baa2
                     Cl. M-9, Assigned Baa3
                     Cl. M-10, Assigned Ba1
                     Cl. M-11, Assigned Ba2


NAPIER ENVIRONMENTAL: Collects $410,769 from Warrants Excercise
---------------------------------------------------------------
Napier Environmental Technologies Inc. issued 41,076,850 common
shares to 6408788 Canada Corp. upon exercise of previously issued
warrants.

Subsequent to this exercise, there are a total of 88,844,892
common shares issued and outstanding, approximately 46% of which
are held by 6408788 Canada Corp.  The exercise of these warrants
results in proceeds to Napier of $410,769.  Napier will use the
proceeds to partially repay its lenders, 6408788 Canada Corp. and
6408753 Canada Corporation.

                      About Napier Environmental

Headquartered in Delta, British Columbia, Napier Environmental
Technologies, Inc. (TSX:NIR) -- http://wwwbiowash.com/-- is a
Canadian company primarily engaged in the development, manufacture
and distribution of a wide range of products utilizing
environmentally advanced technology.  The product lines include
coating removal and wood restoration products for both the
industrial/commercial market and the consumer/retail market.

Napier is currently operating under the protection of the Canadian
Bankruptcy and Insolvency Act.


NORTHWEST AIRLINES: Hires L.E.K. Consulting as Industry Advisor
---------------------------------------------------------------
Northwest Airlines, Inc., and its debtor-affiliates obtained
authority from the United States Bankruptcy Court for the Southern
District of New York to employ L.E.K. Consulting LLC as airline
industry advisors, pursuant to an Engagement Letter dated June 28,
2006.

As reported Troubled Company Reporter on Aug.9, 2006, the Debtors
selected LEK because of its experience and expertise in the
airline industry.  LEK has considerable experience providing
similar consulting services to large, complex business entities
and companies operating as debtors-in-possession under Chapter 11
of the Bankruptcy Code, Michael L. Miller, Northwest Airlines'
vice president, said.

As the Debtors' airline industry advisors, LEK is expected to:

    -- review domestic and international strategic goals; and

    -- assess ways for Northwest to improve its competitive
       position and gain access to attractive markets.

Mr. Miller explained that the LEK's services are not duplicative
of services being rendered by other professionals, including
Seabury Group, LLC.  "LEK's work is focused on broad strategic
issues in the airline industry and is not related to aircraft
financing, the Debtors' finances or other day-to-day
restructuring work being performed by the Seabury Group, LLC
and other retained professionals."

LEK will charge the Debtors for professional fees at $77,000 per
week or $924,000 total for the 12-week duration required.  Any
professional time incurred beyond the base team will either be
billed on a per diem basis or negotiated as projects needs
evolve.

The LEK will also charge the Debtors for direct out-of-pocket
expenses and variable costs.

The Debtors agree to indemnify and hold harmless LEK, together
with its affiliates and their members, managers, officers,
directors, partners, employees and agents, from any claims,
liabilities, losses and damages related or rising from this
engagement, unless the claims, liabilities, losses, or damages
are finally judicially determined to have been the result of
LEK's bad faith or gross negligence.

Dan McKone, LEK's vice president, attests that the firm is
disinterested as that term is defined pursuant to Section 101(14)
of the Bankruptcy Code.

                 About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its travel
partners serve more than 900 cities in excess of 160 countries on
six continents.  The Company and 12 affiliates filed for chapter
11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No.
05-17930).  Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq.,
at Cadwalader, Wickersham & Taft LLP in New York, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in
Washington represent the Debtors in their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for protection
from their creditors, they listed $14.4 billion in total assets
and $17.9 billion in total debts.  (Northwest Airlines Bankruptcy
News, Issue No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NORTHWEST AIRLINES: SVP Blames Interest Payment Delays to JPMorgan
------------------------------------------------------------------
Northwest Airlines, Inc.'s senior vice president and treasurer,
Daniel B. Mathews, relates that on November 22, 2005, Northwest
was fully prepared and was planning to make the $24,495,000
interest due under the Northwest Airlines, Inc., and its debtor-
affiliates' prepetition credit agreement dated April 15, 2005,
with JPMorgan Chase Bank, N.A., as administrative agent, but the
agent's legal counsel advised Northwest's legal counsel not to
send the interest payment.

Mr. Mathews recounts that JPMorgan's counsel had said that
JPMorgan would refuse to accept a current interest only payment
before issues relating to adequate protection were resolved.  Due
to the JPMorgan's position, payment to the various lenders under
the Credit Agreement was delayed for a full month.

Northwest was not permitted to make payment until the stipulation
granting adequate protection to the Prepetition Lenders was
entered into on December 23, 2005, Mr. Mathews says.

Accordingly, Mr. Matthews asserts that Northwest never caused a
"payment default" and had fully intended to pay the Lenders'
current interest on the due date.

Mr. Matthews maintains that there should be no default interest,
interest on interest or penalties as a result of the delayed
payment of the $24,495,000 interest.

           JPMorgan Responds to Mr. Matthews' Claims

On behalf of JPMorgan, Harold S. Novikoff, Esq., at Wachtell,
Lipton, Rosen & Katz, in New York, argues that Mr. Matthews'
statement falsely asserts, based on at least double-hearsay, that
JPMorgan prevented Northwest from making the interest payment due
on November 22.

According to Mr. William T. Strout, JPMorgan's managing director,
his bank only refused Northwest's request that the Prepetition
Lenders waive their substantive rights to additional amounts due
and payable to them under the Prepetition Credit Agreement.

Mr. Strout attests that:

    -- it was Northwest that caused the interest payment due on
       November 22 not to be paid on time;

    -- at no time did JPMorgan or the Prepetition Lenders ever
       request that Northwest defer payment of the November 22
       interest payment; and

    -- JPMorgan, the Prepetition Lenders or their counsel have no
       ability to block Northwest from making those interest
       payment.

Mr. Strout relates that JPMorgan worked in good faith with
Northwest to arrive at the Adequate Protection Stipulation, which
was approved by the U.S. Bankruptcy Court for the Southern
District of New York on December 23, 2005.  Until then, Northwest
had never obtained authorization to make any payments on the
prepetition indebtedness owing to JPMorgan and the Prepetition
Lenders.  The Court-approved Stipulation provided that the
Prepetition Lenders' rights to assert their contractual
entitlements to the additional amounts -- which Northwest had
asked the Prepetition Lenders to waive as a condition to
Northwest's making the November 22, 2005 interest payment -- were
expressly preserved.

             Creditors Committee Supports Debtors

Representing the Official Committee of Unsecured Creditors, Scott
L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.,
in New York, argues that JPMorgan and the Prepetition Lenders are
not entitled to the prepayment penalty because the Debtors'
repayment of its obligations under the Prepetition Credit
Agreement was neither voluntary nor a prepayment.  Under the
Credit Agreement, the Debtors defaulted and the obligations were
automatically accelerated and became fully due and payable as the
result of the Debtors' Chapter 11 commencement.

Mr. Hazan contends that as a matter of contract law and fact, the
Prepetition Lenders are not entitled to the Penalty Interest
because that payment would not compensate them for any actual
loss, thus, would be punitive to the Debtors' estates.

Mr. Hazan adds that the Prepetition Lenders are also not entitled
to the payment of the Disputed Amounts under the Credit Agreement
or applicable law.  He says that it would be highly inequitable
to permit that payment, in the aggregate amount of over
$57,500,000, when, among others:

    -- the Debtors are struggling for their very survival;

    -- the Debtors' pension plans have been frozen; and

    -- the Debtors have had to renegotiate or reject their labor
       agreements to achieve approximately $1,400,000,000 in
       labor savings.

Under Section 506(b) of the Bankruptcy Code, the equities weigh
heavily against the payment of the Disputed Amounts, Mr. Hazan
asserts.

While the Prepetition Lenders may argue that $57,500,000 will not
make a meaningful impact on distributions to the general
unsecured creditors, it is certainly not an insignificant amount
to the insolvent Debtors' ability to reorganize or to the general
unsecured creditors, Mr. Hazan maintains.

Mr. Hazan contends that the mere fact that the Debtors have the
right under the Bankruptcy Code to de-accelerate the Obligations
does not mean acceleration has not occurred.  Under the Credit
Agreement, acceleration was automatic on the Petition Date, after
which time there is no right of the Prepetition Lenders to the
Prepayment Penalty.

The Prepetition Lenders should not be permitted payment of more
than they would have received had the Obligations been de-
accelerated under Section 1124(2), Mr. Lazan tells the Court.  He
insists that, as the Prepetition Lenders have already received
payments of all they would be entitled under Section 1124(2),
their request for payment of the Disputed Amounts should be
denied.

           JPMorgan Wants All Disputed Amounts Paid

Harold S. Novikoff, Esq., at Wachtell, Lipton, Rosen & Katz, in
New York, contests the Debtors' assertions that JPMorgan's
"demands" for a prepayment fee, on the one hand, and ABR and
default interest, on the other, are "fundamentally at odds with
each other."

According to Mr. Novikoff, there is nothing inconsistent about
JPMorgan's positions because all of the Disputed Amounts are
payable to Prepetition Lenders under the Prepetition Credit
Agreement.  The Debtors have offered no legal or factual basis to
disregard any of the Lenders' contractual rights, he asserts.

Mr. Novikoff argues that there can be no doubt that the Debtors
made a "voluntary prepayment" because they repaid the Loans:

    -- years before their scheduled maturities,

    -- before a Chapter 11 plan was filed in the Debtors' cases,
       and

    -- absent any request, demand or pressure from JPMorgan or
       the Prepetition Lenders.

Mr. Novikoff notes that the Prepetition Lenders had neither the
incentive nor the legal basis to compel the DIP Financing, and
never took the slightest step in that direction.  The Debtors, on
the other hand, had every incentive to prepay the Loans, because
the interest savings they could achieve at the Prepetition
Lenders' expense were far greater than the Prepetition Credit
Agreement's prepayment fee.  Having taken advantage of that
under-compensatory prepayment fee, the Debtors have no legal
basis to claim that it is not reasonable, he asserts.

In addition, JPMorgan is not convinced that the Eurodollar/ABR
Increment should be disallowed.  Mr. Novikoff points out that the
Prepetition Credit Agreement makes clear that the Debtors may not
select an Interest Period that extends beyond the "anticipated
final maturity date" of a Loan.  The Debtors' claim that this
limitation applies only to the Loans' original scheduled maturity
dates is incompatible with the Credit Agreement, he contends.

The Debtors' claim also clashes with Section 3.3(b) of the
Prepetition Credit Agreement, which provides that an Interest
Period may not extend beyond a Loan's "anticipated final maturity
date" as of the time when that Interest Period begins, not as of
the time when the Loans were originally mad, when their
maturities were years in the future, Mr. Novikoff argues.

In any event, Mr. Novikoff asserts, JPMorgan validly determined
that the Debtors were not entitled to make further Eurodollar
elections as of November 22, 2005.  Although the Debtors make the
conclusory assertions that this determination violated the
automatic stay, ran afoul of Sections 365(c) and 541(c) of the
Bankruptcy Code, and was a disguised attempt to collect default
interest, they do not cite a single case in support of any of
those assertions.  None of the Debtors' assertions has any legal
support, he maintains.

According to Mr. Novikoff, the Debtors simply misstate the law in
attempting to avoid the contractually required payment of default
interest:

     * The Debtors claim that JPMorgan has the burden to prove
       that the contract default rate should be allowed, even
       though courts in this jurisdiction uniformly apply a
       presumption in favor of that contract rate; and

     * The Debtors pronounce that "there exists not a single
       published decision" in which contract default interest has
       been enforced against an insolvent debtor.

Mr. Novikoff argues that all relevant authorities, including a
recent decision of the Court of Appeals for the Sixth Circuit,
agree that default interest in insolvent cases should be
evaluated on a case-by-case basis.

Mr. Novikoff maintains that the Prepetition Lenders have incurred
substantial damages while the Debtors have been in default.
Accordingly, JPMorgan asserts that default interest should be
allowed on all overdue amounts.

                         Debtors React

Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in
Washington, DC, maintains that the Debtors do not owe any
prepayment fee to JPMorgan and the Prepetition Lenders.

The Credit Agreement provides that the fee payable on "voluntary"
prepayment would not apply after automatic acceleration of the
debt, Mr. Ellenberg emphasizes.  Furthermore, New York law and
other jurisdiction provide that in construing prepayment fee
clauses, acceleration presumptively precludes applicability of
the fee.

The Prepetition Lenders' decisions to revoke the Eurodollar
election option, to demand default interest, Eurodollar/ABR
Interest and a prepayment fee, and to condition continued use of
the collateral on an adequate protection order represent coercive
acts, Mr. Ellenberg contends.  The Prepetition Lenders evidenced
their intention to exercise remedies when JPMorgan refused to
accept Northwest Airlines' November 22, 2005 payment unless and
until an adequate protection to the Lenders was fully negotiated.

The Debtors accede the Prepetition Credit Agreement obligated
Northwest to indemnify the Prepetition Lenders if they suffered
actual damages in connection with the funding of Eurodollar
loans.  The Prepetition Lenders, however, were not injured and
have not claimed indemnification, Mr. Ellenberg points out.

The Prepetition Lenders fail to identify a single concrete cost
attributable to Northwest's default that is not being paid by
Northwest, Mr. Ellenberg adds.  The Lenders also fail to identify
a case where default interest was allowed against an insolvent
debtor.

Mr. Ellenberg further argues that the Prepetition Lenders misread
the Prepetition Credit Agreement when they asserted that the
Adequate Protection Stipulation provisions, permitting Northwest
to continue making Eurodollar elections, manifests Northwest's
concession that the loans had not matured.

The Prepetition Credit Agreement permits elections up to the
"final anticipated maturity date," Mr. Ellenberg explains.  In
addition, the contract right to make the Eurodollar election is
property of the estate.  Thus, Northwest's insistence on the
continued right to make Eurodollar elections in no way conflicts
with the fact that the loans have been accelerated.

Mr. Ellenberg clarifies that the purpose of the Adequate
Protection Stipulation was to preserve rights, claims and
defenses, and not to waive them.  The Stipulation simply
established a mechanism for release of liens upon repayment,
including segregation of funds in a separate account to the
extent that any payoff amounts were disputed.  It is precisely
because of the reservation of rights that amounts would be in
dispute and a reserve would be needed, he avers.

Furthermore, the Prepetition Lenders fail to demonstrate that the
prepayment fee is allowable under Section 506(b), Mr. Ellenberg
argues.  The Credit Agreement prescribes a flat, automatic fee
that declines from 3% in the first year to 1% in the third year,
and then disappears.  The fee is not related in any way to
interest rate movements, Mr. Ellenberg emphasizes.

The Prepetition Lenders complain that the default rate in the
Credit Agreement is low, but never explain what the additional
interest is compensating them for, Mr. Ellenberg points out.  In
fact, it is compensating them for nothing and is purely a
penalty, Mr. Ellenberg asserts.  Moreover, no court has allowed
default interest claims under Section 506(b) where the debtor was
insolvent and unsecured creditors would, in effect, be paying the
increased costs.

There exists no real dispute over interest on interest,
Mr. Ellenberg says.  The only interest on interest due relates to
the default interest, Eurodollar/ABR interest and the prepayment
fee not being made.  If the Court were to award any of the items
to the Prepetition Lenders, Northwest agrees that it is
contractually obligated to pay interest on the unpaid interest.
However, that additional cost only emphasizes the penalty nature
of the items.

Moreover, Mr. Ellenberg argues, Northwest is not obligated to pay
the fees of L.E.K. Consulting, Inc., who appraised collateral for
the Prepetition Lenders in connection with a "potential" motion
for adequate protection, because the appraiser fees are
unnecessary and are not encompassed by the Credit Agreement.
JPMorgan had sufficient expertise to appraise the collateral on
its own, and the "potential" motion was never filed, and never
needed to be filed, Mr. Ellenberg avers.

Accordingly, the Debtors ask the Court to determine that the
Prepetition Lenders have already been paid in full and are not
entitled to any further payments.

                 About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its travel
partners serve more than 900 cities in excess of 160 countries on
six continents.  The Company and 12 affiliates filed for chapter
11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No.
05-17930).  Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq.,
at Cadwalader, Wickersham & Taft LLP in New York, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in
Washington represent the Debtors in their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for protection
from their creditors, they listed $14.4 billion in total assets
and $17.9 billion in total debts.  (Northwest Airlines Bankruptcy
News, Issue No. 39; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


OWENS CORNING: Bankruptcy Court Approves Plan of Reorganization
---------------------------------------------------------------
The Hon. Judith Fitzgerald of the U.S. Bankruptcy Court for the
District of Delaware approved the Owens Corning Plan of
Reorganization on Sept. 26, 2006.  The Bankruptcy Court's approval
of the plan paves the way for Owens Corning to emerge from
bankruptcy by the end of October 2006.

"The court's approval of Owens Corning's Plan of Reorganization is
a significant accomplishment for our company," said Dave Brown,
president and chief executive officer.  "As a direct result of the
hard work of our employees and the continued support of our
customers, suppliers and business partners, Owens Corning has the
strong business performance and financial resources necessary to
make this plan possible.  We are pleased to have court approval on
a plan that deals fairly and equitably with all our creditors and
permanently resolves our asbestos liability.

"Throughout the Chapter 11 process, Owens Corning has remained
committed to fairly compensating individuals who were made sick by
exposure to asbestos-containing products that we produced until
1972," said Mr. Brown.  "This plan allows us to achieve that
objective through the funding of a Trust that will allow those
affected by asbestos to be compensated in the near future."

Owens Corning's creditors and shareholders overwhelmingly
supported the plan, including the asbestos, bondholder, and trade
creditor classes, and bank debt holders.

Before Owens Corning can emerge from bankruptcy, the plan must
also be approved by Judge John P. Fullam of the U.S. District
Court for the Eastern District of Pennsylvania.  Following
district court approval of the plan, Owens Corning must complete
certain administrative steps before it can emerge from Chapter 11.

"We will emerge as a strong company," said Mr. Brown.  "Since
2002, we have strengthened our financial performance, including
increased sales, improved income from operations and reduced SG&A.
These financial achievements are reflected in the preliminary
investment-grade credit ratings that we received from both
Standard&Poor's and Moody's, an unprecedented accomplishment for a
company emerging from a bankruptcy restructuring."

The agreement assumes a total distributable value of approximately
$8.627 billion, consisting of the total enterprise value of
$5.858 billion, assumed excess cash of $1.432 billion, and
Fibreboard trust and asbestos trust assets of $1.491 billion, less
existing debt of $55 million and $99 million in assumed value of
new shares reserved for employee incentive programs.

Key Terms of the Plan of Reorganization is available for free at:

          http://www.ocplan.com/ocplan_chapter11.htm

Owens Corning's exit financing will come from a combination of new
equity, new debt financing and existing debt at non-debtor Owens
Corning entities.  The company will begin distributions to
creditors upon the effective date of its emergence from Chapter
11.

                       About Owens Corning

Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/--  
manufactures fiberglass insulation, roofing materials, vinyl
windows and siding, patio doors, rain gutters and downspouts.
Headquartered in Toledo, Ohio, the Company filed for chapter 11
protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837).
Norman L. Pernick, Esq., at Saul Ewing LLP, represents the
Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered,
represents the Official Committee of Asbestos Creditors.  James J.
McMonagle serves as the Legal Representative for Future Claimants
and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP.


PLY GEM: Alcoa Merger Cues S&P to Put Ratings on Negative Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'B+' corporate credit rating, on Kearney, Missouri-based
siding and window manufacturer Ply Gem Industries Inc. on
CreditWatch with negative implications.

The rating action followed the company's announcement that it has
entered into a definitive agreement to acquire Alcoa Home
Exteriors Inc., a manufacturer of vinyl and aluminum siding and
accessories, from Alcoa Inc. (A-/Negative/A-2) for a purchase
price of about $305 million.

"Although the acquisition should somewhat improve Ply Gem's
business risk profile, we are concerned that an additional debt-
financed acquisition, especially at this point in the housing
cycle, may prevent Ply Gem from attaining the credit metrics
appropriate for the current ratings," said Standard & Poor's
credit analyst Lisa Wright.

Ply Gem's financial risk profile prior to the acquisition was
already below Standard & Poor's expectations, with total debt
(including capitalized operating leases) to EBITDA of about 5.7x
for the 12 months ended July 1, 2006.

To resolve the CreditWatch, Standard & Poor's will assess the
company's business strategy, financial policies, financing plans,
and our expectations for its financial performance over the
intermediate term.


PINNACLE FOODS: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for Pinnacle Foods Group Inc.

Additionally, Moody's revised or confirmed its probability-of-
default ratings and assigned loss-given-default ratings on these
loans facilities and notes:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2009                  B1       Ba3     LGD3       33%

Sr. Sec. Term Loan B
Due 2010                  B1       Ba3     LGD3       33%

Sr. Sec. Term Loan B
Due 2010                  B1       Ba3     LGD3       33%

Sr. Sub. Notes
Due 2013                  B3       B3      LGD5       85%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Pinnacle Foods Group Inc. -- http://www.pinnaclefoodscorp.com/--
with corporate offices in Mountain Lakes and Cherry Hill, New
Jersey produces, markets, and distributes high-quality branded
food products in the frozen foods and dry foods segments.  The dry
foods segment consists primarily of Duncan Hines(R) baking mixes
and frostings; Vlasic(R) pickles, peppers and relish; Armour(R)
canned meats; Open Pit(R) barbeque sauce and Mrs. Butterworth's(R)
and Log Cabin(R) syrups and pancake mixes.  The frozen foods
segment consists primarily of Aunt Jemima(R) frozen breakfasts;
Swanson(R) and Hungry Man(R) frozen dinners and entrees; Van de
Kamp's(R) and Mrs. Paul's(R) frozen seafood; Celeste(R) pizza; and
Lender's(R) bagels.


POLY-TECH RADIANT: Files for Relief Under Canadian Bankruptcy Act
-----------------------------------------------------------------
Poly-Tech Radiant Inc., a subsidiary of Cie-Nergy Ply-foil Canada
Inc., filed for protection under Canada's Companies' Creditors
Arrangement Act on Sept. 19, 2006, in order to facilitate its
financial restructuring.  Cie-Nergy owns 75% of the issued and
outstanding shares in the capital of Poly-Tech.  The CCAA process
will allow Poly-Tech to restructure its balance sheet and costs to
complete its transformation into a leaner, more efficient, lower
manufacturer.

Under the CCAA process, Poly-Tech is required to submit a formal
proposal to its creditors by Oct. 6, 2006.  The creditors will
then have to approve the proposal within 21 days after submission.
If the proposal is approved, Poly-Tech will emerge from CCAA
protection.

During the CCAA process, Poly-Tech will continue its operations in
the normal course and Cie-Nergy will continue its relationship
with Poly-Tech.  The CCAA process will not affect the business of
Cie-Nergy.  In addition, Cie-Nergy is also currently negotiating
with various manufacturers to ensure that its business will not be
affected.

Poly-Tech Radiant Inc., a subsidiary of Cie-Nergy Ply-foil Canada
Inc., manufactures bubble foil insulations.  Headquartered in
Quebec, Canada, Cie-Nergy (TSX-V:CGY) -- http://www.cie-nergy.com/
-- is engaged in the manufacturing and marketing of specialty
reflective insulating products and specializes in building
products designed to cut down on energy costs.  The Company
markets its products in North America and Europe under the Thermo
Foil(TM), Ayr Foil(TM) and Air Thermo Foil(TM) brand names.


POLYMER GROUP: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B2 Corporate
Family Rating for Polymer Group, Inc.

Additionally, Moody's held its probability-of-default ratings and
assigned loss-given-default ratings on these loans and bond debt
obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $45 million Sr.
   Secured Revolver
   due 2010             B1       B1       LGD3     33%

   $410 million Sr.
   Secured Term
   Loan B due 2012      B1       B1       LGD3     33%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Charlotte, North Carolina, Polymer Group, Inc. --
http://www.polymergroupinc.com/-- is a global, technology-driven
developer, manufacturer and marketer of engineered materials.


POLYONE CORPORATION: Fitch Lifts Sr. Unsecured Debts' Rating to B+
------------------------------------------------------------------
Fitch Ratings affirmed PolyOne Corporation's issuer default rating
at 'B'; upgraded the rating on the senior unsecured debt; and
withdrawn the rating on the senior secured credit facility.  The
Rating Outlook is Stable.

The ratings are:

   -- Issuer default rating 'B'

   -- Senior secured credit facility 'BB/RR1' withdrawn

   -- Senior unsecured notes and debentures: upgraded to 'B+/RR3'
      from 'B/RR4'

The ratings continue to reflect PolyOne's:

   * downstream position as a leading plastics compounder and
     North American distributor;

   * low operating margins;

   * high debt level; and

   * cyclical earnings.

PolyOne's operating performance continued to improve in 2005 and
through the first half of 2006.  In the current environment, raw
material resin pricing has stabilized at high levels and PolyOne
has been able to catch up with its own price increases, supported
by good demand.  Distributions from equity affiliates continue to
be an important source of cash flow for the company.

For the latest 12 months period ended June 30, 2006, PolyOne's
operating EBITDA improved to $158 million from $119 million at
year-end 2005.  Operating EBITDA margin has also improved to 6.0%
from 4.9% at year-end 2005, but remains in the single-digit range.

Meanwhile, total debt (including A/R securitization) declined to
$628 million from $654 million at the end of 2005.  Higher
earnings and lower debt have strengthened credit statistics with
total adjusted debt/operating EBITDAR of 4.4x and operating
EBITDA/gross interest expense of 2.1x.  These credit statistics
compare favorably to leverage of 5.9x and coverage of 1.5x at
year-end 2005.

The withdrawal of the $30 million senior secured credit facility
rating stems from the expiration of that facility with no
replacement.  The upgrade of the senior unsecured debt rating to
'B+/RR3' reflects an increase in principal recovery related to the
expiration of the senior secured credit facility.

The Stable Rating Outlook incorporates some additional improvement
in earnings and profitability with modest, if any, debt reduction
over the next 12 months.

The Stable Outlook assumes:

   * demand is stable;
   * any necessary price increases can be passed through; and
   * costs moderate slightly.

Other than the medium-term notes maturing each year, Fitch does
not anticipate significant debt reduction in the near term.
PolyOne has stated its desire to retire the 2010 notes on their
call date in May 2007.

PolyOne, headquartered in Avon Lake, Ohio, is the largest
compounder of plastics and a leading distributor of plastic resins
in North America.  PolyOne had revenues of approximately $2.7
billion and operating EBITDA of $157.7 million for the LTM period
ended June 30, 2006.


PUMPWORKS INC: Involuntary Chapter 11 Case Summary
--------------------------------------------------
Alleged Debtor: Pumpworks, Inc.
                2277 49th Avenue North
                Minneapolis, MN 55430

Involuntary Petition Date: September 26, 2006

Case Number: 06-42109

Chapter: 11

Court: District of Minnesota (Minneapolis)

Judge: Robert J. Kressel

Petitioners' Counsel: Kenneth Corey-Edstrom, Esq.
                      Larkin Hoffman Daly and Lingren Ltd.
                      1500 Wells Fargo Plaza
                      7900 Xerxes Ave. S
                      Bloomington, MN 55431
                      Tel: (952) 835-3800
                      Fax: (952) 896-333

   Petitioners                Nature of Claim       Claim Amount
   -----------                ---------------       ------------
Leigh's Company               Subordinated               $91,000
6434 Logan Avenue South       Debenture Holder
Minneapolis, MN 55423

Lee Jackson                   Subordinated               $60,000
6434 Logan Avenue South       Debenture Holder
Minneapolis, MN 55423

Wayne Gysland                 Subordinated               $47,500
4138 Blueberry Knoll          Debenture Holder
Eagan, MN 55123


PURE FISHING: Weak Financial Results Cue S&P's Rating Downgrade
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
and bank loan ratings on fishing tackle manufacturer Pure Fishing
Inc., including PFI's corporate credit rating, which was lowered
to 'B' from 'B+'.

At the same time, the recovery rating on the first-lien senior
secured credit facility was raised to '3' from '4', indicating
that first-lien lenders could expect meaningful recovery of
principal (50% to 80%) in the event of a payment default.

The second-lien bank loan recovery rating of '5' remained
unchanged, indicating the rating agency's expectation that second-
lien lenders can expect negligible recovery of principal in the
event of a payment default (0%-25%).  The outlook was revised to
stable from negative.

"The corporate credit and bank loan rating downgrades reflect
weaker-than-expected financial results and the expectation that
financial performance will remain soft for the remainder of 2006,"
said Standard & Poor's credit analyst Mark Salierno.

The raised recovery rating on the first-lien bank facility
reflects modest debt repayment in first-lien term loan debt (about
$10 million over the past two years) and the rating agency's
revised assumption for a less precipitous decline in EBITDA under
Standard & Poor's default scenario, which now considers a shorter
timeline to default.

Total debt outstanding at PFI as of June 30, 2006, was
approximately $191 million, excluding operating leases.

The ratings on Spirit Lake, Iowa-based PFI reflect the company's
narrow business focus, participation in the highly competitive
fishing tackle industry, customer concentration, and leveraged
financial profile.


RADNOR HOLDINGS: U.S. Trustee Wants Chapter 11 Trustee Appointed
----------------------------------------------------------------
Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, asks the
U.S. Bankruptcy Court for the District of Delaware to appoint a
chapter 11 trustee in Radnor Holdings Corporation and its debtor-
affiliates' bankruptcy proceedings or in the alternative, appoint
an examiner.

The Trustee relates that at the hearing held on Sep. 14, 2006, it
was revealed that the Debtors' Chief Financial Officer has been
replaced because he altered evidence, in particular, two
electronic mails.  The First Day Affidavit in the Debtors' chapter
11 cases was prepared and signed by the CFO.

The Trustee tells the Court that since the CFO is responsible for
the financial documents that parties in interest in this case must
rely upon, the public documents submitted by the Debtors and
others have raised serious concerns not only about the accuracy of
the information available to the public, but also about the
management of the Debtors and the connections among the lender,
the Debtors, and the proposed bankruptcy professionals.

The Trustee contends these concerns, when considered together with
the expedited sale of the Debtors' assets, are cause enough to
appoint a chapter 11 trustee.

The Trustee further contends that the Debtors have requested an
extension of the time to file their schedules of assets and debts
and statements of financial affairs until after the date set for
the first meeting of creditors.  If granted, this means that
schedules and statements of affairs will not be filed in time for
parties-in-interest to complete a meaningful review before the
contemplated sale.

The Trustee tells the Court that she wants a chapter 11 trustee
appointed to investigate:

    (1) the accuracy of the financial information in the first day
        affidavit and the financial information provided to the
        public by the Debtors;

    (2) whether any material information of the Debtors was
        altered or destroyed;

    (3) any material discrepancies in the reporting of the
        Debtor's inventory;

    (4) the transfers, including compensation and benefits, to
        insiders and to non-debtor related entities;

    (5) the proposed sale by the Debtor of its assets to
        Tennenbaum Capital Partners, LLC or to an affiliate
        thereof and the circumstances surrounding the Sale to
        determine the propriety of the Sale and whether any causes
        of action exist which may be pursued by the Debtor or
        other parties in interest with respect to the Sale; and

    (6) the control exerted by Tennenbaum Capital Partners, LLC or
        any person controlled by TCP over the Debtors prior to the
        Debtors' bankruptcy filing to determine the propriety of
        such control and whether any causes of action exist which
        may be pursued by the Debtor or other parties in interest
        with respect to the same.

Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide.  The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894).  Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors.  The Official Committee of Unsecured
Creditors is represented by Greenberg Traurig, LLP. When the
Debtors filed for protection from their creditors, they listed
total assets of $361,454,000 and total debts of $325,300,000.


RAPID LINK: Primary Debt Holders Extend Maturity to November 1
--------------------------------------------------------------
Rapid Link, Inc., reported the extension and revision of all
Convertible Debenture Notes drawn in the favor of GCA Strategic
Investment Fund Limited, a Bermuda Corporation and Global Capital
Funding Group, L.P., a Delaware limited partnership.

Highlights of the Amended Notes:

   -- Both convertible debentures held by GCASIF have had their
      maturity dates extended to Nov. 1, 2007.

   -- All conversions of the debentures to common stock now have a
      $0.10 conversion floor and a $0.25 conversion ceiling in
      place for the duration of the notes.

"These amendments, agreed to and implemented by Rapid Link and our
primary debt holders, are truly an expression of support and
cooperation by GCASIF and GCFG in Rapid Link, our management, and
our current course of business.  GCASIF and GCFG are aware of the
tremendous strides Rapid Link has recently made in its business as
detailed in the recent 10Q filed Sept. 14, 2006, and their support
in amending our agreements is an encouraging sign for our
investors," stated John Jenkins, CEO of Rapid Link.

                         About Rapid Link

Headquartered in Los Angeles, California, Rapid Link, Inc. --
http://www.rapidlink.com/-- provides Voice over Internet Protocol
communication services, including fax, data, and other Web-based
services.  The company offers PC-to-PC, PC-to-phone, phone-to-
phone calling on their unique set of Internet Access Devices
that provide a new low cost phone service that is delivered
through a broadband connection.

                        Going Concern Doubt

KBA Group LLP, in Dallas, Texas, raised substantial doubt about
Rapid Link's ability to continue as a going concern after auditing
the Company's consolidated financial statements for the year ended
Oct. 31, 2005.  The auditor pointed to the Company's shareholders'
deficit of $6.3 million, and its recurring losses from continuing
operations during each of the last two fiscal years.


RC2 CORP: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency revised its Ba2 Corporate
Family Rating to Ba3 for RC2 Corporation.

Additionally, Moody's confirmed its probability-of-default ratings
and assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2008                  Ba2      Ba2     LGD3       32%

Sr. Sec. Term Loan
Due 2008                  Ba2      Ba2     LGD3       32%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

RC2 Corporation -- http://www.rc2corp.com/-- designs, produces
and markets innovative, high-quality toys, collectibles, hobby and
infant care products that are targeted to consumers of all ages.
RC2's infant and preschool products are marketed under its
Learning Curve(R) family of brands which includes The First
Years(R) by Learning Curve and Lamaze brands as well as popular
and classic licensed properties such as Thomas & Friends, Bob the
Builder, Winnie the Pooh, John Deere, and Sesame Street.  RC2
markets its collectible and hobby products under a portfolio of
brands including Johnny Lightning(R), Racing Champions(R),
Ertl(R), Ertl Collectibles(R), AMT(R), Press Pass(R), JoyRide(R)
and JoyRide Studios(R).  RC2 reaches its target consumers through
multiple channels of distribution supporting more than 25,000
retail outlets throughout North America, Europe, Australia, and
Asia Pacific.


REFCO INC: Ch. 11 Trustee Wants Court Nod on Winchester Settlement
------------------------------------------------------------------
Prior to filing for bankruptcy, Refco Capital Markets, Ltd.,
Winchester Preservation, LLC, and certain individual beneficiaries
entered into interrelated agreements, including:

   (i) loan agreements, notes, and pledge agreements between RCM
       and each of the Beneficiaries;

  (ii) a deposit agreement and a pledge agreement between RCM and
       Winchester; and

(iii) pledge agreements among RCM, each of the Beneficiaries,
       and Christiana Bank & Trust Company.

RCM loaned the Beneficiaries certain sums, and Winchester
deposited a sum equal to the principal amount of the loan into an
account held by RCM.

The Loan Documents provide that the deposit will be automatically
offset against the loan, upon the Beneficiaries' demand to
Winchester for redemption and Winchester's subsequent demand to
RCM for withdrawal of the deposit.  The offset is subject to the
Beneficiaries' payment to RCM of a sum equal to the spread
between interest accrued on the loan and interest accrued on the
deposit and a break fee.

When RCM filed for bankruptcy, the Beneficiaries demanded
redemption from Winchester, and Winchester subsequently demanded
withdrawal of the deposit from RCM.

Winchester and the Beneficiaries commenced an adversary proceeding
asserting, among other things, rights of set-off or recoupment
concerning the deposit account held by RCM.  Each of the Claimants
also filed a proof of claim against all of the Debtors.

Marc Kirschner, the Chapter 11 trustee overseeing RCM's estate,
has determined that Winchester's and the Beneficiaries' right to
recoup the deposit against the Loan as provided for in the Loan
Documents is valid and likely would be upheld by the Court if the
issue were litigated.

After vigorous and arm's-length negotiations, the RCM Trustee,
Winchester, and the Beneficiaries entered into a settlement
agreement.

The RCM Trustee asks the U.S. Bankruptcy Court for the Southern
District of New York to approve the Settlement Agreement.

The terms of the Agreement are:

   (a) The Claimants' right to recoupment of the deposit against
       the loan will be honored;

   (b) The Claimants will pay RCM the interest spread and break
       fee due under the Loan Documents;

   (c) The parties will release one another from all claims and
       causes of action arising from the Loan Documents, except
       as expressly provided in the Agreement;

   (d) The Claimants will irrevocably withdraw all proofs of
       claim against RCM and the other Debtors;

   (e) All litigation between the parties will be discontinued
       with prejudice, including the Adversary Proceeding; and

   (f) The Claimants' objection to the RCM Trustee's settlement
       agreement with RCM securities customers and general
       unsecured creditors will be irrevocably withdrawn.

Timothy B. DeSieno, Esq., at Bingham McCutchen LLP, in New York,
New York, asserts the Agreement will benefit RCM's estate and, in
turn, its creditors, by efficiently collecting the net value to
RCM of the Loan Documents, rather than eroding that net value by
expending fees and costs in a litigation with little or no chance
of success.

                         About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14
countries and an extensive global institutional and retail client
base.  Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and
Singapore.  In addition to its futures brokerage activities, Refco
is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products.  Refco is one of the largest
global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors.  Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada.  Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is
represented by Bingham McCutchen LLP.  RCM is Refco's operating
subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News, Issue
No. 42; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


REFCO INC: Inks Settlement Accord with BofA & Prepetition Lenders
-----------------------------------------------------------------
Refco Inc., and its debtor-affiliates and Marc Kirschner, the
Chapter 11 trustee for Refco Capital Markets, Ltd., ask the U.S.
Bankruptcy Court for the Southern District of New York to approve
a settlement agreement with Bank of America, N.A., and a syndicate
of lenders under an August 5, 2004, credit agreement.

The Settlement Agreement implements a key component of a global
plan being negotiated for the Refco estates, J. Gregory Milmoe,
Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York,
explains on the Debtors' behalf.

The Global Plan, Mr. Milmoe says, would call for pre-confirmation
payments to a group of the Debtors' secured lenders.  The
payments will help ensure the availability of funds to pay other
constituencies by:

   (1) cutting off the interest accruing on the secured lenders'
       claims in excess of $6,000,000 per month or $200,000 per
       day;

   (2) minimizing the incurrence of additional professional fees
       by the Debtors, the Debtors' secured lenders, the
       Committees and others, which have already been
       substantial; and

   (3) resolving disputes over the use of cash collateral.

The specific terms of the Global Plan are currently being
negotiated, and a formal agreement has not yet been reached among
the various constituencies, Edwin E. Smith, Esq., at Bingham
McCutchen LLP, in New York, tells the Court on the RCM Trustee's
behalf.  The Motion is being filed with the expectation that a
formal agreement for a Global Plan will be reached, Mr. Smith
says.

              Refco's Obligations to BofA & Lenders

Refco Finance Holding, LLC, entered into the Credit Agreement in
connection with an Equity Purchase and Merger Agreement among
Refco Group Ltd., LLC; Refco Group Holdings, Inc.; Thomas H. Lee
and its affiliates; and certain other parties.  The Equity
Purchase Agreement required Refco Group to obtain $1,400,000,000
in financing through a term loan and a note issuance.

The Equity Purchase Agreement contemplated a series of
transactions resulting in:

   (i) New Refco Group, Ltd., LLC, becoming the parent of Refco
       Group;

  (ii) THL and its co-investors acquiring a 56.7% interest in New
       Refco Group;

(iii) Phillip Bennett, CEO of the various Refco Entities, owning
       a 42.8% interest in New Refco Group; and

  (iv) Refco management owning the remaining 0.5% of New Refco
       Group.

RFH and Refco Group merged on August 5, 2004, with Refco Group as
the surviving entity.

The Credit Agreement provided for up to $800,000,000 in term
loans and a $75,000,000 revolving credit facility.  New Refco
Group and certain of Refco Group's affiliates guaranteed Refco
Group's obligations under the Credit Agreement.

Refco Group and the Guarantors granted BofA, as administrative
agent for the Lenders, a security interest in substantially all
of Refco Group's and the Guarantors' assets pursuant to a
Security Agreement and certain Collateral Documents.

RFH and Refco Finance, Inc., also issued $600,000,000 in 9%
Senior Subordinated Notes pursuant to a Senior Subordinated Note
Indenture dated August 5, 2004, with Wells Fargo Bank, N.A.  The
Notes were guarantied by Refco Group and certain of Refco Group's
affiliates, but the Notes and the guaranties are unsecured and
subordinate to the claims arising from the Loan Documents.

As of the Petition Date, there was approximately $642,000,000 in
principal outstanding under the Credit Agreement exclusive of
interest, fees, and other obligations.  Interest on the principal
is accruing at a rate of more than $6,000,000 per month.

BofA has filed proofs of claim against the Debtors based on
amounts due under the Loan Documents.  BofA also asserted claims
based on, among others things, fraud and misrepresentations of
the Debtors.  BofA said certain of the Debtors were potentially
employed in a joint scheme to defraud the Lenders in relation to
the Recapitalization.

On January 24, 2005, the Refco estates paid $150,000,000 to the
Lenders in partial satisfaction of amounts due under the Credit
Agreement.  BofA transferred the funds to certain of the Lenders.

             Potential Claims Against BofA & Lenders

The Joint Subcommittee of the Official Committees of Unsecured
Creditors believes that the Debtors' estates hold potential
causes of action to (i) avoid their obligations to the Lenders,
and (ii) recover the Repayment as fraudulent conveyances.

The Joint Subcommittee, however, acknowledges that resolution of
the claims against BofA and the Lenders would be expensive and
time-consuming.  BofA and Lenders may assert significant defenses
like solvency, reasonably equivalent and fair value, lack of
grounds for collapsing transactions, lack of causation, inability
to avoid settlement payments and the like, Mr. Smith tells Judge
Drain.

                      Major Settlement Terms

The Debtors and the RCM Trustee filed with the Court a proposed
order, which sets out the settlement terms permitting the payment
of the Debtors' secured lenders.  The Proposed Order, Mr. Smith
relates, also provides the means by which the Debtors can avoid
contesting and, if unsuccessful, paying claims asserted by BofA
and the Lenders based on alleged fraud and misrepresentations as
well as contesting or paying claims for indemnification,
additional interest, and other amounts claimed under contracts.

A full-text copy of the Proposed Order is available at no charge
at http://ResearchArchives.com/t/s?124c

The Proposed Order provides that BofA and the Lenders' claims
under the Loan Documents will be allowed in full as secured
claims in the cases of Refco Group and the debtor-Guarantors.
The claims will be secured by valid and perfected liens in
collateral, which will be worth more than the amount of the
secured claims.  The secured claims will not be subject to
avoidance.

On or before the later of October 16, 2006, or a later date that
is agreed upon, the Debtors will pay BofA:

   * $642,000,000, constituting the full outstanding principal
     amount due under the Loan Documents;

   * $1,693,276, constituting the full amount of interest accrued
     and unpaid under the Loan Documents on the Petition Date;

   * all interest accrued on principal and interest payable under
     the Loan Documents from the Petition Date through the
     Payment Date, payable at the Post-Petition Interest Rate and
     compounded daily from the Petition Date through the Payment
     Date;

   * the lesser of $13,500,000 and the fees and expenses that are
     reimbursable under the Loan Documents through September 30,
     2006.  The amount is subject to increase upon the occurrence
     of certain events, such as if the hearing on the Motion is
     contested or if BofA incurs additional fees as a result of
     being sued prior to September 30; and

   * other fees and expenses payable under the Loan Documents
     incurred from October 1, 2006, through the Payment Date.

The Post-Petition Interest Rate is the Base Rate in effect from
time to time plus the Applicable Rate applicable to Base Rate
Loans, as each term is defined in the Credit Agreement, but
without the additional 2% per annum default interest provided in
the Credit Agreement.

BofA and the Lenders are deemed to consent to their Liens being
primed in part by security interests and liens that secure credit
obligations incurred by the Debtors for the purpose of funding or
refinancing the funding of payments made to BofA pursuant to the
Proposed Order if the principal amount of the credit obligation
does not exceed $200,000,000.

                         Qualifying Plan

The parties participating in the Settlement, including the
Debtors and the RCM Trustee, expect to execute a participating
party agreement by the September 27, 2006, hearing on the Motion.
The parties will agree to:

   -- use their reasonable best efforts to ensure that a plan
      confirmed in the Chapter 11 Debtors' cases is a Qualifying
      Plan; and

   -- be bound by the terms and conditions of the Proposed Order,
      whether or not a plan is agreed upon or confirmed.

A list of the participating parties is available at no charge at:

                http://ResearchArchives.com/t/s?124b

A Qualifying Plan, among others, implements the terms and
conditions of the Proposed Order, including the treatment of and
releases provided to BofA and the Lenders.  BofA's and the
Lenders' claims for indemnification and other amounts due under
the Credit Agreement will be estimated at $0 for purposes of
allowance in the Debtors' cases.  Their unsecured claims,
including claims for fraud and misrepresentation, will also be
estimated at $0.

                         Cash Collateral

Upon payment in full of amounts required to be paid on or before
the Payment Date, the Debtors will be authorized to use the
Lenders' cash collateral to pay allowed administrative expenses
and to make other payments under an effective Qualified Plan or
as permitted by the Court without any further consent of or
provision of adequate protection to BofA or the Lenders.

The Adequate Protection Motion currently before the Court will be
postponed to the date of the hearing on confirmation of a plan.
BofA and the Lenders will not seek any additional adequate
protection.

                          BAWAG Proceeds

BofA has asserted, on the Lenders' behalf, a security interest
in, among other Refco assets, the cash proceeds of the Debtors'
settlement with BAWAG P.S.K. Bank fur Arbeit und Wirtschaft und
Osterreichische Postsparkasse Aktiengesellschaft.

Mr. Milmoe relates that to the extent that Refco Group or any of
the Guarantors ever come into possession of the BAWAG Proceeds,
on or prior to the Payment Date, the Debtors may use these
proceeds to make the payments required under the Proposed Order.

                         About Refco Inc.

Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14
countries and an extensive global institutional and retail client
base.  Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and
Singapore.  In addition to its futures brokerage activities, Refco
is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products.  Refco is one of the largest
global clearing firms for derivatives.

The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts.  Luc A.
Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents
the Official Committee of Unsecured Creditors.  Refco reported
$16.5 billion in assets and $16.8 billion in debts to the
Bankruptcy Court on the first day of its chapter 11 cases.

Refco LLC, an affiliate, filed for chapter 7 protection on
Nov. 25, 2005 (Bankr. S.D.N.Y. Case No. 05-60134).  Refco, LLC, is
a regulated commodity futures company that has businesses in the
United States, London, Asia and Canada.  Refco, LLC, filed for
bankruptcy protection in order to consummate the sale of
substantially all of its assets to Man Financial Inc., a wholly
owned subsidiary of Man Group plc.  Albert Togut, the chapter 7
trustee, is represented by Togut, Segal & Segal LLP.

On April 13, 2006, the Court appointed Marc S. Kirschner as Refco
Capital Markets Ltd.'s chapter 11 trustee.  Mr. Kirschner is
represented by Bingham McCutchen LLP.  RCM is Refco's operating
subsidiary based in Bermuda.

Three more affiliates of Refco, Westminster-Refco Management LLC,
Refco Managed Futures LLC, and Lind-Waldock Securities LLC, filed
for chapter 11 protection on June 6, 2006 (Bankr. S.D.N.Y. Case
Nos. 06-11260 through 06-11262).  (Refco Bankruptcy News, Issue
No. 41; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


RESIDENTIAL ASSET: Moody's Cuts Class M-I-3 Notes' Rating to Caa3
-----------------------------------------------------------------
Moody's Investors Service has downgraded three certificates from
one Residential Asset Securities Corporation subprime deal issued
in 2002.  The transaction is backed by fixed-rate and adjustable-
rate subprime mortgage loans originated by Residential Funding
Corporation.  The master servicer on the transaction is
Residential Funding Corporation.  HomeComings Financial Network,
Inc. is the primary servicer for the majority of the loans in the
deal.

The three subordinate classes in the fixed-rate group have been
downgraded because existing credit enhancement levels may be low
given the current projected losses on the underlying pools.  The
pool of mortgages has seen losses in recent months and future loss
could cause a more significant erosion of the
overcollateralization.  The fixed-rate pool currently has $827,401
of OC which is below the 50 bp OC floor as of the August 25
reporting date.

These are Moody's complete rating actions:

   * Issuer: Residential Asset Securities Corporation

Downgrades:

   -- Series 2002-KS2; Class M-I-1, downgraded to Aa3 from Aa2;
   -- Series 2002-KS2; Class M-I-2, downgraded to Ba1 from Baa3;
   -- Series 2002-KS2; Class M-I-3, downgraded to Caa3 from B1.


REVLON CONSUMER: S&P Downgrades Corporate Credit Rating to CCC+
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered all of its ratings on
New York City-based Revlon Consumer Products Corp., including its
corporate credit rating, to 'CCC+' from 'B-'.  The outlook is
negative.

About $1.4 billion total debt was outstanding at June 30, 2006.

"The downgrade follows Revlon's announcement that it is
substantially lowering its earnings guidance for fiscal 2006 due
to the discontinuance of Vital Radiance and continued operating
challenges, and will seek an amendment to its credit facility,"
said Standard & Poor's credit analyst Alison Sullivan.

This represents the company's second earnings guidance revision
and potentially its third bank facility amendment in 2006.

Previously, Standard & Poor's expected operating improvement in
the second half of fiscal 2006.  These events have led to greater
uncertainty regarding the company's ability to improve performance
and reduce leverage.

Revlon announced that 2006 adjusted EBITDA is estimated to be $75
Million - $85 million, including $129 million of special charges.

In comparison, in June 2006 Revlon stated that 2006 adjusted
EBITDA would be approximately even with or somewhat below 2005
levels of $167 million, including a $60 million operating loss
associated with Vital Radiance and $10 million restructuring
charge.

The company's Vital Radiance brand, launched in January 2006, will
be discontinued resulting in a $110 million negative impact in
2006 ($70 million will occur in the third quarter).  Revlon's
restructuring initiative will also lead to $29 million ($21
million cash) of charges, which are expected to provide $34
million in savings with $5 million to be realized in 2006.

Revlon is seeking an amendment to its credit facility to add back
Vital Radiance and streamlining charges.  The company previously
amended its bank facility in February 2006 and July 2006 to adjust
covenant levels and/or definitions.


ROBERT MULHOLLAND: Voluntary Chapter 11 Case Summary
----------------------------------------------------
Debtor: Robert Timothy Mulholland
        18710 20th Avenue Southeast
        Bothell, WA 98012

Bankruptcy Case No.: 06-13302

Chapter 11 Petition Date: September 26, 2006

Court: Western District of Washington (Seattle)

Judge: Samuel J. Steiner

Debtor's Counsel: Darrel B. Carter, Esq.
                  CBG Law Group PLLC
                  11100 Northeast 8th Street, Suite 380
                  Bellevue, WA 98004
                  Tel: (425) 283-0432

Estimated Assets: Less than $50,000

Estimated Debts:  $1 Million to $10 Million

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


ROWE COS: Gets AMEX Noncompliance Notice Due to Chapter 11 Filing
-----------------------------------------------------------------
The Rowe Companies has received written notice from the American
Stock Exchange informing the the Company that it failed to meet
one of AMEX's continued listing standards.

Specifically, the Company was notified that it is not compliance
with Section 1003(a)(iv) of the AMEX Company Guide because, based
on the Company's voluntary commencement of Chapter 11 proceedings,
the Company has sustained losses which are so substantial in
relation to its overall operations, or its financial condition has
become so impaired that it appears questionable, in the opinion of
AMEX, as to whether the Company will be able to continue
operations and/or meet its obligations as they mature.

The notification states that in order to maintain its AMEX
listing, the Company must submit a plan by Oct. 23, 2006, advising
AMEX of the action the Company has taken, or will take, to comply
with Section 1003(a)(iv) by the earliest possible date.  The
Company has not yet determined how it will respond to the
notification.

Headquartered in McLean, Virginia, The Rowe Companies --
http://www.therowecompanies.com/-- manufactures upholstered
retail home and office furniture, interior decorations, tableware,
lighting fixtures, and other interior design accessories.  The
Company owns 100% of stock of manufacturing and retail
subsidiaries, Rowe Furniture -- http://www.rowefurniture.com/--  
and Storehouse, Inc. -- http://www.storehousefurniture.com/

The Company and its two of its debtor-affiliates filed for chapter
11 protection on Sept. 18, 2006 (Bank. E.D. Va. Case Nos. 06-11142
to 06-11144).  Dylan G. Trache, Esq., H. Jason Gold, Esq., and
Valerie P. Morrison, Esq., at Wiley Rein & Fielding LLP, represent
the Debtors.  When the Debtors filed for protection from their
creditors, The Rowe Companies listed total assets of $130,779,655
and total debts of $93,262,974; Rowe Furniture estimated assets
between $50 million and $100 million and debts between $10 million
and $50 million; and Storehouse, Inc. estimated assets and debts
between $10 million and $50 million.


SACO I: Moody's Assigns Ba2 Rating to Class B Subordinated Notes
----------------------------------------------------------------
Moody's Investors Service has assigned a Aaa rating to the senior
notes issued by SACO I Trust 2006-8, and a Ba2 rating to the
subordinate notes in the deal.

The rating on the Class A notes are based on the credit quality of
the loans and on the protection offered by subordination, excess
spread, overcollateralization and a certificate guaranty insurance
policy issued by Ambac Assurance Corporation, which has an
insurance financial strength rating of Aaa.  The rating on the
Class B notes is based on the credit quality of the loans and on
the protection offered by subordination, excess spread, and
overcollateralization.  Moody's expects collateral losses to range
from 5.10% to 5.60%.

GMAC Mortgage Corporation will service 72.7% of the loans and EMC
Mortgage Corporation will service 27.3% of the loans.  LaSalle
Bank National Association will act as master servicer.

These are the actions taken:

   * Issuer: SACO I Trust 2006-8

              -- Mortgage-Backed Notes, Series 2006-8

                     Class A, Assigned Aaa
                     Class A-IO, Assigned Aaa
                     Class B, Assigned Ba2


SAINT VINCENTS: Court Approves Asset Sale to St. John's University
------------------------------------------------------------------
The Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court
for the Southern District of New York authorizes Saint Vincents
Catholic Medical Centers of New York and its debtor-affiliates to
consummate the private sale of their School of Allied Health
Professions business and related real property located at 175-05
Horace Harding Expressway, Fresh Meadows, in New York, in
accordance with their asset purchase agreement with St. John's
University, dated July 28, 2006.

The order is subject to the Court first authorizing the Debtors to
complete the purchase of the real property from Turnpike Gardens,
Inc., and that transaction having closed or closing effectively
contemporaneously with the closing of the Contemplated
Transactions.

As reported in the Troubled Company Reporter on Aug. 24, 2006, the
Debtors sought the Court's authority to sell these assets to St.
John's for $7,770,000, plus the assumption of certain liabilities:

    (a) a parcel of nonresidential real property and improvements
        located at 175-05 Horace Harding Expressway, Fresh
        Meadows, in New York; and

    (b) the business of the School of Allied Health Professions
        located at the premises, which consists of five programs:

          (i) a Physician's Assistant program,
         (ii) a Medical Technology program,
        (iii) a Radiography program,
         (iv) a Pathology Assistant program, and
          (v) an EMS Institute program.

The Debtors are authorized and directed to:

    (1) execute and deliver, perform under, consummate, and
        implement the APA, with all necessary additional
        instruments and documents; and

    (2) take all other actions as may be requested by St. John's
        University, to assign, transfer, or reduce to possession
        the purchased assets, or as may be appropriate to the
        performance of the APA obligations.

Judge Hardin further rules that:

    -- the Debtors will deliver the net proceeds of the sale to
       General Electric Capital Corporation on account of a
       postpetition financing secured by a first priority lien on
       the Purchased Assets;

    -- to the extent the payment results in a failure of the
       adequate protection provided to Patsy Merola or Great
       American Insurance Company, Ms. Merola and GAIC will be
       entitled to assert their rights as may be available to them
       under Section 507(b) of the Bankruptcy Code;

    -- all persons and entities holding Liens against in, or with,
       the Debtors and the Purchased Assets relating to the
       Debtors, the Purchased Assets, the operation of the
       Debtors' business prior to the Closing, or the transfer of
       the Purchased Assets to the Purchaser, are forever barred,
       estopped, and permanently enjoined from asserting Liens
       against the Purchaser and its assets;

    -- the transfer of the Purchased Assets constitutes a legal,
       valid, and effective transfer; will not be taxed; and will
       not be subject to any tax under any law imposing a stamp
       tax or other similar tax on any of the Debtors' transfers
       or sales in connection with the Contemplated Transactions;

    -- no assets owned and used by Computer Sciences Corporation
       in line with its provision of services under an information
       technology service agreement with the Debtors are sold or
       transferred to the Purchaser by the APA; and

    -- all obligations of the Debtors under the APA will be
       afforded administrative expense priority in the Debtors'
       Chapter 11 cases.

All objections that have not been withdrawn, waived, or settled,
including Ms. Merola and GAIC's objections, are overruled on the
merits with prejudice, Judge Hardin says.

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


SAINT VINCENTS: Taps Caronia Corp as Estimation Consultant
----------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its
debtor-affiliates, together with their Official Committee of
Unsecured Creditors, and the Official Committee of Tort Creditors,
jointly seek permission from the U.S. Bankruptcy Court for the
Southern District of New York to employ and retain Caronia
Corporation as their consultant in connection with the estimation
of medical malpractice claims filed prior to the bar date.

The Parties determined that Caronia has substantial experience in
estimating potential liability for medical malpractice claims in
a variety of relevant contexts and valuing portfolios of medical
malpractice claims for transfer purposes because Caronia worked
with healthcare providers for more than 35 years in evaluating
and managing medical professional liability claims.

In New York, Caronia has provided services to, among others, New
York-Presbyterian, The University Hospital of Columbia and
Cornell, and New York University Hospital.

As Estimation Consultant, Caronia is tasked to:

    (1) prepare an expert estimation report based on an analysis
        of the Debtors' potential aggregate liability arising out
        of the Medical Malpractice Claims; and

    (2) provide expert testimony relating to the Medical
        Malpractice Estimation, including, consulting with the
        Parties and their counsel and others in connection with
        the preparation of the Estimation Report, all pursuant to
        the terms and conditions set forth in a stipulation and
        agreed protocol and protective order executed by the
        Parties and Caronia on September 21, 2006.

As set forth in the Protocol and Protective Order, the Parties
expressly agree that the Estimation Report will include:

    * a description of Caronia's credentials and experience in
      performing a valuation of medical malpractice claims
      generally and in New York, the background of each of the
      firm's professionals working on the Estimation Report, and a
      list of expert retentions in the last 10 years;

    * a list of the general categories of documents that Caronia
      has relied on while preparing the Estimation Report,
      including a detailed list of any documents that are not
      confidential;

    * an explanation of Caronia's methodology in reaching
      individual claim values;

    * the Debtors' total estimated aggregate potential medical
      malpractice liability for each region;

    * a comparison of the Aggregate Potential Liability against
      the Debtors' actuarial estimates; and

    * a "sensitivity" analysis providing a "confidence range"
      based on the addition or subtraction of certain assumptions
      employed by Caronia in the Medical Malpractice Estimation.

If a Party withdraws from the joint retention of Caronia and
disclaims the firm as its expert, the Debtors will have the right
to continue to employ Caronia for purposes of the Medical
Malpractice Estimation, subject to Caronia's compliance with the
Protocol and Protective Order.

Caronia's will be paid:

    -- $250 per file/claim reviewed in preparation of the
       Extimation Report; and

    -- $100-$200 per hour depending on the professional or
       paraprofessional working on the engagement for time spent
       drafting the Estimation Report, preparing testimony or
       actually testifying.

The Debtors will also reimburse Caronia for expenses incurred.

James M. Page, vice president of Caronia, assures the Court that
his firm has no connection with, and holds no interest adverse
to, the Debtors, their creditors, or any other party-in-
interest.  Caronia is a "disinterested person," as that term is
defined in Section 101(14) of the Bankruptcy Code, Mr. Page says.

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


SATELITES MEXICANOS: Judge Drain Approves Solicitation Procedures
-----------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, approved the Solicitation and
Tabulation Procedures to be used in connection with Satelites
Mexicanos, S.A. de C.V.'s solicitation of votes for its Chapter 11
Plan of Reorganization.

The Court finds that the Debtor's procedures for soliciting and
tabulating votes on its First Amended Plan of Reorganization
provide for a fair and equitable voting process and are consistent
with the requirements of the Bankruptcy Code and the Bankruptcy
Rules.

Judge Drain sets Sept. 13, 2006, as the record date for purposes
of determining the creditors entitled to vote on the Plan.  The
record date for purposes of making distributions under the Plan
will be set at the time of the confirmation hearing on the Plan.

Holders of claims in Class 2 Senior Secured Note Claims and Class
4 Existing Bond Claims; and holders of allowed interests in
Classes 6A and 6B Existing Preferred Stock Interests, and Classes
7A and 7B Existing Common Stock Interests, may vote on the Plan.

Judge Drain says ballots need not be provided to the holders of
claims in Class 1 Priority Non-Tax Claims, Class 3 Other Secured
Claims, and Class 5 General Unsecured Claims, because the Plan
provides that those classes are unimpaired and, therefore,
conclusively presumed to accept the Plan pursuant to Section
1126(f) of the Bankruptcy Code.

Ballots must be returned to Kurtzman Carson Consultants, Inc., the
Debtor's notice and balloting agent, no later than Oct. 20, 2006.
Late votes will not be counted.

Voting creditors are deemed to have voted the full amount of their
claim or interest.

Judge Drain allows the Senior Secured Notes Claims in Class 2 for
$203,388,000 and the Existing Bonds Claims in Class 4 for
$320,000,000, solely for voting purposes.  Each interest in
Classes 6A and 6B and Classes 7A and 7B is also temporarily
allowed for voting purposes.

The Debtor said its Plan has the support of:

   -- Servicios Corporativos Satelitales, S.A. de C.V.;

   -- Loral Skynet Corporation and Loral SatMex, Ltd.;

   -- Principia S.A. de C.V.;

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

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

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


SATELITES MEXICANOS: Court Sets Confirmation Hearing on Oct. 26
---------------------------------------------------------------
The Honorable Robert D. Drain, of the U.S. Bankruptcy Court for
the Southern District of New York, will convene a hearing on
Oct. 26, 2006, at 10:00 a.m., to consider confirmation of
Satelites Mexicanos, S.A. de C.V.'s First Amended Plan of
Reorganization.

As reported in the Troubled Company Reporter on Aug. 21, 2006, the
Debtor asked Judge Drain to convene a hearing to consider
confirmation of its Chapter 11 Plan of Reorganization seven days
after the Voting Deadline.

The Confirmation Hearing may be continued from time to time by the
Court or the Debtor without further notice other than announcement
of adjournments in open court or as indicated in any notice of
agenda of matters scheduled for hearing filed with the Court.

However, the Debtor will provide notice of any continuance to
counsel for the ad hoc committee of holders of its Senior Secured
Floating Rate Notes due June 30, 2004; and the ad hoc committee of
holders of its 10-1/8% Unsecured Senior Notes due Nov. 1, 2004.

Moreover, confirmation of the Plan will not occur later than
Dec. 11, 2006, without the consent of the Ad Hoc Committees.

Judge Drain authorized the Debtor to publish the Confirmation
Hearing Notice, on one occasion, by Sept. 25, 2006, in The New
York Times (National Edition) and in Reforma, a Mexican newspaper.

Any objections to confirmation of the Plan must be filed with the
Court by Oct. 20, 2006.

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


SPRINGS WINDOW: Moody's Assigns Loss-Given-Default Ratings
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency upgraded its B1 Corporate
Family Rating to Ba3 for Springs Window Fashions, LLC.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans and bond
debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $250 million
   Term Loan
   due 2013             B1       Ba3       LGD2     29%

   $100 million
   Revolver due 2011    B1       Ba3       LGD2     29%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).


SUNNY DELIGHT: Moody's Assigns Loss-Given-Default Ratings
---------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency revised its Caa1 Corporate
Family Rating to Caa3 for Sunny Delight Beverages Company.

Additionally, Moody's confirmed its probability-of-default ratings
and assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2010                 Caa1     Caa1     LGD2        24%

Sr. Sec. Term Loan
Due 2010                 Caa1     Caa1     LGD2        24%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Sunny Delight Beverages Company -- http://www.sunnyd.com/-- is a
global manufacturer and distributor of juice drinks and sports
beverages under the Sunny Delight brand name.  The Company's U.S.
headquarter is located at Cincinnati, Ohio, and its European
headquarter is located at Barcelona, Spain.  The company produces
and markets SunnyD(R) Original, SunnyD Intense Sport(TM) and
SunnyD Baja(TM).


THOMPSON CREEK: S&P Rates Proposed $125 Million Debt at CCC+
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' corporate
credit rating to Englewood, Colorado-based Thompson Creek Metals
Co.  The outlook is stable.

At the same time, Standard & Poor's assigned its 'B' bank loan
rating and '1' recovery rating to Thompson's proposed $350 million
of first-lien senior secured debt and 'CCC+' and '3' recovery
rating to $125 million of proposed second-lien debt.

The first-lien debt is rated one notch above the corporate credit
rating; the 'B' rating and the '1' recover rating indicate that
lenders can expect full recovery of principal in the event of a
payment default.

The second-lien debt is rated one notch below the corporate credit
rating; the 'CCC+' rating and the '3' recovery rating indicate
that lenders can expect meaningful (50%-80%) recovery of principal
in the event of a payment default.

Proceeds from the proposed financing will be used to finance the
acquisition of Thompson Creek by Blue Pearl Mining Ltd (unrated).

"We expect the company's cash flow to decline in conjunction with
a decline in molybdenum prices, but we expect that the company
will still have enough cash flow to meet its aggressive debt
amortization payments in the short term," said Standard & Poor's
credit analyst Dominick D'Ascoli.

"We could revise the outlook to negative if molybdenum prices fall
meaningfully below our expectations or if there is a significant
operating disruption.  We could revise the outlook to positive if
molybdenum prices are expected to remain at very high levels over
the next several years, allowing the company to meet its debt
amortization.  One year of higher-than-expected prices is unlikely
to cause us to revise the outlook, given the aggressive
amortization schedule."

Thompson Creek produces molybdenum as a primary product from its
mines, which places it in the minority, as two-thirds of
molybdenum is produced as a by-product of other mining, primarily
copper mining.  This industry dynamic negatively affects primary
producers, because declines in molybdenum prices are unlikely to
change the production level of copper producers, which could
exacerbate declines in molybdenum prices.


THORNBURG MORTGAGE: Moody's Assigns B2 Rating to Class B-5 Notes
----------------------------------------------------------------
Moody's Investors Service assigned an Aaa rating to the senior
certificates issued by Thornburg Mortgage Securities Trust 2006-5
and ratings ranging from Aa2 to B2 to the subordinate certificates
in the deal.

The securitization is backed by Wells Fargo Bank, N.A. (72.19%)
and Thornburg Mortgage Home Loans, Inc. (27.60%) originated
adjustable mortgage loans.  The ratings are based primarily on the
credit quality of the loans and on the protection from
subordination.  Moody's expects collateral losses to range from
0.20% to 0.40%.

The mortgage loans will be serviced by Wells Fargo Bank N.A.
(72.19%), Thornburg Mortgage Home Loans, Inc. (27.29%), and
various other banks, savings and loan associations and other
mortgage lending institutions.  Cenlar FSB will subservice all of
the mortgage loans serviced by Thornburg.   Wells Fargo Bank, N.A.
will act as master servicer.  Wells Fargo Bank, N.A. is rated SQ1
by Moody's as a master servicer.

These are Moody's rating actions:

   * Issuer: Thornburg Mortgage Securities Trust 2006-5
   * Mortgage Loan Pass-Through Certificates, Series 2006-5

                  Cl. A-1, Assigned Aaa
                  Cl. A-2, Assigned Aaa
                  Cl. A-X, Assigned Aaa
                  Cl. A-R, Assigned Aaa
                  Cl. B-1, Assigned Aa2
                  Cl. B-2, Assigned A2
                  Cl. B-3, Assigned Baa2
                  Cl. B-4, Assigned Ba2
                  Cl. B-5, Assigned B2

Class B-4 and Class B-5 notes are being offered in a privately
negotiated transaction without registration under the 1933 Act.
The issuance was designed to permit resale under Rule 144A.


TOWER RECORDS: Section 341(a) Meeting Scheduled on Friday
---------------------------------------------------------
The U.S. Trustee for Region 3 will convene a meeting of MTS
Incorporated, dba Tower Records, and its debtor-affiliates'
creditors at 10:00 a.m., on Sept. 29, 2006, at Room 2112, Second
Floor, J. Caleb Boggs Federal Building in Wilmington, Delaware.
This is the first meeting of creditors required under Section
341(a) of the Bankruptcy Code in all bankruptcy cases.

All creditors are invited, but not required, to attend.  This
Meeting of Creditors offers the one opportunity in a bankruptcy
proceeding for creditors to question a responsible office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

Headquartered in West Sacramento, California, MTS, Inc., dba Tower
Records -- http://www.towerrecords.com/-- is a retailer of music
in the U.S., with nearly 100 company-owned music, book, and video
stores.  The Company and seven of its affiliates filed for chapter
11 protection on Aug. 20, 2006 (Bankr. D. Del. Case Nos. 06-10886
through 06-10893).  Richards, Layton & Finger, P.A. and O'Melveny
& Myers LLP represent the Debtors.  The Official Committee of
Unsecured Creditors is represented by McGuirewoods LLP.  When the
Debtors filed for protection from their creditors, they estimated
assets and debts of more than $100 million.  The Debtors'
exclusive period to file a chapter 11 plan expires on Dec. 18,
2006.

The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394).  The Court confirmed the plan on March 15, 2004.


TRW AUTOMOTIVE: Fitch Affirms BB Issuer Default Rating
------------------------------------------------------
Fitch Ratings has affirmed these ratings of TRW Automotive
Holdings Inc.:

  -- Issuer Default Rating 'BB'
  -- Senior secured bank lines 'BB+'
  -- Senior unsecured notes 'BB-'
  -- Senior subordinated unsecured Notes 'B+'

Fitch's ratings reflect TRW's strong diversity of OEM customers
and geographies, and the company's technology-driven products that
have allowed the company to weather an onerous industry
environment.

Despite significant production cutbacks by North American
manufacturers and industry cost challenges, TRW's operating
efficiency, a substantial book of business outside of North
America and continued healthy demand for TRW's products has
sustained margins through the industry turmoil.

The company's margins remain at the high end of the supplier
industry, providing a buffer in the event of further deterioration
in industry fundamentals.  Even in an adverse economic and
industry scenario through 2007, Fitch expects TRW to remain safely
cashflow positive, although debt reduction could be limited in
such a scenario.

The Rating Outlook is stable.

TRW's operating performance, balance sheet and credit metrics have
remained stable in an industry environment that has precipitated
several supplier bankruptcies due to price erosion, increased
commodity costs, volatile OEM production cadences and lower OEM
unit volume on market share losses.

The company has been able to avoid the perils faced by many
suppliers due to its lower relative dependence on the North
American operations of Ford and General Motors, geographic
diversity by which nearly two-thirds of total revenue is generated
outside of North America, and product line-up of safety components
and fuel-saving technologies which continue to see strong demand.

At the end of 2Q06, the company had:

   * $1.6 billion in secured bank debt,
   * $1.0 billion in senior unsecured notes,
   * $0.3 billion in senior subordinated unsecured notes, and
   * $0.1 billion in short term debt and capital leases,

totaling $3 billion of debt.

Less $520 million of cash and marketable securities, net debt was
$2.5 billion, representing a decrease of $45 million compared to
year-end 2005.  The change in net debt includes a premium paid of
$57 million related to the tender for GBP94.6 million in 10-7/8%
bonds from its Lucas Industries Limited subsidiary.

On a total adjusted debt basis, the 2Q06 debt level was $3.7
billion down $0.2 billion compared to $3.9 billion at year end
2005.  TRW was well within its covenant agreements on capital
expenditures, Interest Coverage and Leverage.

At the end of 2Q06, TRW had approximately $833 million of
availability under its revolver after $67 million in outstanding
LOCs.  Under the US securitization facility, approximately $233
million of receivables were eligible for borrowings and only about
$121 million would have been available for funding.

In addition, approximately EUR119 million and GBP25 million were
available under the European facilities.

As of June 30, TRW had nothing outstanding on any of its A/R
programs.  Including the cash and marketable securities balance of
$520 million, total availability at the end of 2Q06 was
approximately $1.7 billion.

While TRW's customer base and manufacturing footprint are one of
the more diverse in the Fitch supplier universe, the company is
not completely immune to changes in its larger customers'
production schedules.  However, sales to customers other than Ford
and General Motors accounted for more than 70% of 2005 revenues.

Clearly demonstrating limited exposure to the domestic OEs,
despite 4Q06 production cuts of 21%, 12% and 10% for Ford, GM and
Chrysler Group, respectively, TRW reduced its Street guidance to a
full year revenue range of $13.0 to $13.2 billion, down from a
range of $13.0 to $13.3.  The less than 1% reduction in the top
end of revenue guidance resulted in a 5% to 6% reduction in the
range of forecasted net income or roughly $10 to $16 million.

Government continues to pressure the industry for increased
vehicular safety.  TRW manufactures the type of safety components
and systems which have been the focus of recent legislation.  For
example, the Alliance of Automobile Manufacturers and the
Insurance Institute for Highway Safety announced 'voluntary
performance criteria' in front-to-side collisions.

The criteria includes the use of a wide range of occupant
protection technologies and designs which affect front structural
components, side air bags, air bag curtains and side-impact
structures.

By September 1, 2007, 50% of all vehicles sold by a manufacturer
in the U.S. are supposed to meet the front-to-side performance
criteria, and by September 2009, manufacturers are to be 100%
compliant.

In another example, NHTSA has mandated direct tire pressure
monitoring systems, capable of detecting under-inflation.  The
phase-in period begins with 20% compliance of all vehicles sold
from October 5, 2005 to August 31, 2006, then 70% from September
1, 2006 to August 21, 2007; and then all vehicles thereafter.

Finally, in September NHTSA proposed a rule at the direction of
congress that outlines a federal mandate that all new vehicles be
equipped with electronic stability control by the 2012 model year.
NHTSA studies have indicated a dramatic reduction in crashes for
vehicles equipped with ESC.


TUBULAR TECHNOLOGIES: Loses Lease on Lexington, N.C. Facility
-------------------------------------------------------------
On Oct. 28, 2004, Tubular Technologies, LLC, entered into a five-
year lease agreement with S-2 Properties, Inc., to lease
nonresidential real property at 4157 Old Highway 52 in Lexington,
North Carolina.  On Jan. 20, 2006, Tubular Technologies filed for
chapter 11 protection (Bankr. D. S.C. Case No 0600228).

On Dec. 17, 1998, S-2 granted GrandSouth Bank a Deed of Trust.
The Deed of Trust provided GrandSouth with an interest in rental
proceeds generated by the Leased Premises, and it further provided
that GrandSouth may foreclose on the Leased Premises if S-2
defaults on an agreement with GrandSouth.  S-2 defaulted on its
obligations to GrandSouth; therefore, GrandSouth exercised its
right to receive the rent that Debtor paid to S-2 and commenced a
foreclosure action to obtain possession of the Leased Premises.

After notice to required parties in interest, including Debtor,
S-2, Advance Financial Corp., and O'Neal Steel, Inc., and without
objection of any party, on March 22, 2006, the Bankruptcy Court
granted GrandSouth relief from the automatic stay to pursue a
foreclosure action and other collection action against S-2 in
North Carolina state court.  The order modified the automatic stay
provided by Sec. 362(a) to allow GrandSouth to foreclose.  The
order also reserved GrandSouth's ability to seek eviction of
Debtor from the Leased Premises.

GrandSouth's foreclosure action proceeded in the North Carolina
state, and a ruling by the state court is under advisement and may
be issued at any time.  Simultaneously, S-2 and its principals
have a separate state court action pending against GrandSouth.

Because the Debtor filed for bankruptcy after Oct. 17, 2005, the
amendments to the Bankruptcy Code under the Bankruptcy Abuse
Prevention and Consumer Protection Act of 2005 required the Debtor
to make its decision about whether to assume, assume and assign,
or reject the lease within 120 days, or ask for more time to make
that decision.  On May 12, 2006, Tubular Technologies moved to
extend the time to assume or reject the Lease pursuant to Sec.
365(d)(4)(B)(i).  Despite the fact that the Motion to Extend was
filed 112 days after the petition date, the Debtor did not request
an expedited hearing or take further action to request that the
Court address the Motion to Extend and render a decision prior to
May 20, 2006, the one-hundred twentieth day after the petition
date.  Instead, the Debtor filed and served a hearing notice,
which indicated that a hearing on the Motion to Extend would be
scheduled for June 13, 2006, if a return, response, or objection
to the Motion to Extend was properly filed with the Court and
served on Debtor.

On May 26, 2006, S-2 filed a timely objection to the Motion to
Extend.  In the objection, S-2 asserted that cause did not exist
to grant the Motion to Extend.  S-2 also noted that pursuant to
Sec. 365(d)(4)(B), the Court could not extend the deadline to
assume or reject the Lease under Sec. 365(d)(4)(A) because such
relief was not granted on or before May 20, 2006. S-2 also
asserted that the Court lacked jurisdiction to so act.

The Honorable John E. Waites held a hearing on the Motion to
Extend on June 13, 2006, 144 days after the petition date.  At the
hearing, the Debtor indicated that it needed more time to
determine whether to assume or reject the Lease because
GrandSouth's foreclosure action could affect its interests in the
Leased Premises.  During the course of the hearing, Todd
Boudreaux, Esq., the Debtor's lawyer, also admitted that in order
to extend the time to assume or reject a nonresidential lease
under Sec. 365(d)(4)(B), the Court must extend the time by
entering an order within 120 days of filing the bankruptcy
petition.  Despite that concession, Mr. Boudreaux asserted that
Tubular Technologies was, nevertheless, entitled to an extension
to assume or reject because:

    (1) S-2 lacked standing to object to the Motion to Extend
        because under the terms of the Deed of Trust between
        GrandSouth and S-2, GrandSouth assumed S-2's right to
        collect rent from the Debtor and

    (2) the deadline for entering an order on the Debtor's
        Motion to Extend should be extended for excusable
        neglect pursuant to Rule 9006 of the Federal Rules of
        Bankrupty Procedure and the Court's inherent equitable
        authority under Sec. 105(a).

Judge Waites rejected the Debtor's standing argument in light of
the fact that S-2 was the owner of the Leased Premises and lessor
during the 120 days following the petition date in this case (as
admitted in Debtor's Motion to Extend).   Furthermore, Judge Waite
viewed Sec. 365(d)(4)(B) as a self executing statutory provision
which required strict compliance before granting an extension of
time to assume or reject a nonresidential lease.  The Court also
rejected the Debtor's excusable neglect argument because (a)
Debtor failed to present evidence demonstrating excusable neglect
and (b) the excusable neglect standard did not apply to the time
limits prescribed by statute.

Accordingly, in light of the admission made by Debtor's counsel
and the plain meaning of the Reform Act's amendments to Sec.
365(d)(4)(B), on June 21, 2006, the Court entered an order which
held that Debtor was not entitled to an extension of time to
assume or reject the Lease because the Debtor failed to obtain an
order extending the time to assume or reject before the 120 day
deadline imposed by Sec. 365(d)(4)(B)(i).

After denying the Debtor's Motion to Extend, the Court concluded
that the Lease was deemed rejected; and thus, pursuant to Sec.
365(d)(4)(A), the Court ordered Debtor to "immediately surrender
the Leased Premises to S-2."  As a result of the Rejection Order,
the sheriff of Davidson County, North Carolina, accompanied
representatives of S-2 to the Leased Premises. Prior to any
enforcement action, Debtor's managers instructed employees to
leave, and they left without securing the Leased Premises.

In response to the Rejection Order, the Debtor filed a notice of
appeal, a Motion for Stay, and a Motion to Expedite Hearing on the
Motion for Stay on June 22, 2006.  On June 23, 2006, the Court
granted Debtor's Request for Expedited Hearing and provided an
interim stay until a further hearing on the Motion for Stay could
be held.  As a condition of providing interim stay relief, Judge
Waites reserved the authority to further grant or deny a stay
following a hearing on the merits of the Motion for Stay scheduled
for June 27, 2006.

The Debtor, S-2, GrandSouth, AFC, and Rubbermaid Commercial
Products attended the hearing on the Motion for Stay.

In support of its Motion for Stay, the Debtor contended that it
would suffer irreparable harm if a stay pending appeal was not
granted because absent such a stay, S-2 would take possession of
the Leased Premises and prevent the Debtor from operating its
business there.  The Debtor also asserted that its inability to
operate at the Leased Premises for two days or more would put it
out of business.  The Debtor further contended that there was a
substantial likelihood that it would succeed on the merits of its
appeal.  In support of that assertion, Debtor directed the Court's
attention to United States v. Stollings, 516 F.2d 1287 (4th Cir.
1975) to demonstrate that a court may extend time in such
situations, despite the plain language of a rule or statute
establishing a specific time to act.

According to Rubbermaid, a closing of Debtor's business would stop
the production of certain components that that Debtor produced for
Rubbermaid and subject Rubbermaid to certain contractual fines and
a loss of business.

GrandSouth noted that its pending foreclosure action in North
Carolina state court was nearing a conclusion; and thus, the Court
should grant a stay pending appeal because a judgment in
GrandSouth's favor may deprive S-2 of the right to possession of
the Leased Premises.  GrandSouth also stated a willingness to
consider a new lease agreement with the Debtor and allow the
Debtor to continue operations at the leased premises, if
GrandSouth prevailed on the foreclosure action.  If GrandSouth did
not prevail in the foreclosure action or the related separate
pending action, S-2's rights as owner of the Leased Premises would
remain.  As of the date of the hearing on the Motion for Stay, a
final adjudication of GrandSouth's foreclosure action remained
unresolved.  Nevertheless, whether or not GrandSouth ultimately
prevails in its foreclosure action, S-2 was the lessor during the
applicable 120 days following the petition date.

After an announcement of settlement, AFC contended that the stay
should be granted because the language of Sec. 365(d)(4) may be
constitutionally defective in that it mandates the immediate
surrender of nonresidential leased property in possible
contravention of state law procedures to recover possession of
leased property.

In light of the record developed at the hearing, the Debtor and S-
2 stipulated to a stay until July 12, 2006, to provide parties
sufficient time to raise further stay issues before the U.S.
District Court in the appellate proceeding.  Given the parties'
consent and after fully considering the evidence, Judge Waites
granted a stay pending appeal for that limited period of time.

The U.S. District Court reviewed Judge Waites' Stay Order, and
concluded it was inadequate for purposes of Bankruptcy Rule 8005
because it was based on the consent of the parties to a stay for a
limited period of time and did not otherwise contain sufficiently
detailed findings for review.

In response to the instruction of the District Court, Judge Waites
issued detailed findings of fact and conclusions of law, reported
at 2006 WL 2529588.  This time around, Judge Waite concludes that
the Debtor's Motion for Stay must be denied.  The Debtor has not
presented that it will likely prevail on the merits or that, at a
minimum, there is a substantial question for an appeal, Judge
Waite says.  Furthermore, Judge Waite opines, the public interest
weighs in favor of denying Debtor's Motion to Stay.  In light of
this ruling, Judge Waite rules, any temporary stay of the
Rejection Order, previously prescribed by the Court, is
terminated.

Tubular Technologies is represented by:

     Todd Boudreaux, Esq.
     Shepard, Plunkett, Hamilton, Boudreaux & Tisdale, LLP
     701 Greene Street, Suite 104
     Augusta, Georgia 30901-2322
     Telephone (706) 722-4111


UNIFI INC: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the US Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors and Agricultural
Cooperative sectors, the rating agency confirmed its B3 Corporate
Family Rating for Unifi, Inc., and its Caa1 rating on the
Company's $190 million senior secured notes due 2014.  In
addition, Moody's assigned an LGD4 rating to notes, suggesting
noteholders will experience a 61% loss in the event of a default.

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Greensboro, North Carolina, Unifi, Inc. --
http://www.unifi-inc.com/-- is a diversified producer and
processor of multi-filament polyester and nylon textured yarns and
related raw materials.  The Company adds value to the supply chain
and enhances consumer demand for its products through the
development and introduction of branded yarns that provide unique
performance, comfort and aesthetic advantages. Key Unifi brands
include, but not limited to: Sorbtek(R), A.M.Y.(R), Mynx(TM) UV,
Reflexx(R), MicroVista(R) and Satura(R).  Unifi's yarns and brands
are readily found in home furnishings, apparel, legwear and sewing
thread, as well as industrial, automotive, military and medical
applications.


VARIG S.A.: Appeals Court Allows ANAC to Redistribute Routes
------------------------------------------------------------
Minister Nacy Andrighi of the Federal Court of Appeals in Brazil
authorized the Brazilian Civil Aviation Agency to continue the
redistribution of routes, airport slots and schedules formerly
used by VARIG, S.A., to other airline companies, Investnews
(Brazil) reports.

According to the Appeals Court, distribution of slots and routes
was "the exclusive preserve of ANAC" as the industry regulator,
Dow Jones Newswires relates.

As previously reported, ANAC filed a formal complaint against
Judge Marcia Cunha Silva de Carvalho of the Commercial Bankruptcy
and Reorganization Court in Rio de Janeiro for stopping the
redistribution of VARIG's former routes and slots.  ANAC argued
before the Brazilian Justice Council that only the federal justice
could suspend the redistribution of routes and slots.

The Brazilian Bankruptcy Court fined ANAC BRL1,000,000 -- $467,500
-- for violating an injunction imposed in VARIG's case.  The
Injunction allowed ANAC to act only if VARIG fails to resume
service on its 272 routes within 30 days of receiving a new route
permit.  At that time, VARIG had not received new permits.

ANAC redistributed VARIG's routes to TAM Linhas Aereas, S.A.; Gol
Linhas Aereas Inteligentes; and BRA.

Judge Cunha lifted the fine after ANAC agreed to stop its action.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin America.
VARIG's principal business is the transportation of passengers and
cargo by air on domestic routes within Brazil and on international
routes between Brazil and North and South America, Europe and
Asia.  VARIG carries approximately 13 million passengers annually
and employs approximately 11,456 full-time employees, of which
approximately 133 are employed in the United States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a competitive
landscape, high fuel costs, cash flow deficit, and high operating
leverage.  The Debtors may be the first case under the new law,
which took effect on June 9, 2005.  Similar to a chapter 11
debtor-in-possession under the U.S. Bankruptcy Code, the Debtors
remain in possession and control of their estate pending the
Judicial Reorganization.  Sergio Bermudes, Esq., at Escritorio de
Advocacia Sergio Bermudes, represents the carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 32; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


VARIG S.A.: Cuts Fare on Five Local and Two International Flights
-----------------------------------------------------------------
VARIG, S.A., offers more than 50% discount on airfares to five
local and two international destinations, according to Investnews
(Brazil).  One of those discounted routes is from Manaus, Brazil,
to Caracas, Venezuela.

VARIG has obtained four new aircraft and re-established its routes
towards Caracas early this month.  The airline will also resume
flights to Brasilia, Curitiba and Fernando de Noronha, in Brazil.
It also plans to resume services to New York and Miami, in the
U.S.

Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's
largest air carrier and the largest air carrier in Latin America.
VARIG's principal business is the transportation of passengers and
cargo by air on domestic routes within Brazil and on international
routes between Brazil and North and South America, Europe and
Asia.  VARIG carries approximately 13 million passengers annually
and employs approximately 11,456 full-time employees, of which
approximately 133 are employed in the United States.

The Company, along with two affiliates, filed for a judicial
reorganization proceeding under the New Bankruptcy and
Restructuring Law of Brazil on June 17, 2005, due to a competitive
landscape, high fuel costs, cash flow deficit, and high operating
leverage.  The Debtors may be the first case under the new law,
which took effect on June 9, 2005.  Similar to a chapter 11
debtor-in-possession under the U.S. Bankruptcy Code, the Debtors
remain in possession and control of their estate pending the
Judicial Reorganization.  Sergio Bermudes, Esq., at Escritorio de
Advocacia Sergio Bermudes, represents the carrier in Brazil.

Each of the Debtors' Boards of Directors authorized Vicente
Cervo as foreign representative.  In this capacity, Mr. Cervo
filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case
Nos. 05-14400 and 05-14402).  Rick B. Antonoff, Esq., at
Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the
United States.  As of March 31, 2005, the Debtors reported
BRL2,979,309,000 in total assets and BRL9,474,930,000 in total
debts. (VARIG Bankruptcy News, Issue No. 32; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


VISTEON CORP: Opens $10 Million Technical Center in India
---------------------------------------------------------
Global automotive supplier Visteon Corporation opened a
$10 million Visteon Technical and Services Center in Chennai,
India.  The 110,000 square-foot facility is set to become
Visteon's center of excellence for automotive embedded software,
providing support to Visteon globally, including joint ventures
and aftermarket business.  The Indian arm of Visteon software
development accounts for more than 50% of the global software
development within Visteon.

The new center will build on the strong capability of the India
software team to develop and validate electronic modules for audio
products (radios, satellite digital radios, media players),
instrument clusters, body control modules, adaptive lighting
products, electronic climate controls, powertrain electronics and
engine control modules, center displays and other products.

The center will also provide business process outsourcing support
in the areas of supplier management, finance operations and
environmental engineering.  Visteon Technical and Services Center
will be fully supported by two other existing Visteon entities:
Visteon Powertrain Control Systems India Private Ltd., and Visteon
Automotive Systems India Private Ltd.

"The new technical and service center demonstrates our continuous
commitment to India," said Bob Pallash, senior vice president of
Visteon Corporation and president of Asia Pacific Customer Group.
"This development center will play a crucial role in further
driving our success worldwide.  With the Indian automotive sector
poised for unprecedented growth, our Indian operations are a
critical asset in further developing Visteon's competitive edge."

Located at Olympia Tech Park, an information technology park in
the business district of Chennai, Visteon Technical and Services
Center occupies four floors of the "Fortius" building.  The new
facility is expected to accommodate more than 700 software
professionals and 250 business process professionals.  The Chennai
software operation has been growing steadily since its inception
in 1998 and currently has 450 full time employees, including 400
software engineers and 50 business process employees.

"This new center is another symbol of our expansion in the country
and emphasizes Visteon's strengths and world-class capabilities to
deliver services globally and meet the unique requirements of
customers in India," said A. Viswanathan, managing director,
Visteon India.  "The employees deliver remarkable quality,
innovation and performance standards.  With its world-renowned IT
skills and excellent automotive knowledge, India is fast emerging
as an excellent base for prototyping, testing, validating and
producing auto-components for the global market."

With approximately 2,200 employees, Visteon has a significant
presence in India in electronics, climate (car air conditioning
and engine cooling systems), interior (instrument panel and door
trims), rotating electronics and lighting systems.  Visteon
facilities in India include:

   *  Climate Systems India Limited,
   *  Visteon Automotive Systems India Private Ltd.
   *  Visteon Automotive Systems India Private Ltd.
   *  Visteon Powertrain Control Systems India Private Ltd.
   *  TATA Visteon Automotive Private Ltd.
   *  TACO Visteon Engineering Private Ltd.

                    About Visteon Corporation

Headquartered in Van Buren Township, Michigan, Visteon Corporation
(NYSE: VC) -- http://www.visteon.com/-- is a global automotive
supplier that designs, engineers and manufactures innovative
climate, interior, electronic and lighting products for vehicle
manufacturers, and also provides a range of products and services
to aftermarket customers.  With corporate offices in the Michigan
(U.S.); Shanghai, China; and Kerpen, Germany; the company has more
than 170 facilities in 24 countries and employs approximately
50,000 people.

                          *     *     *

As reported in the Troubled Company Reporter on Sept 13, 2006,
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.


WAAG PROPERTIES: Case Summary & 6 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Waag Properties LLC
        815 Cedar Avenue South
        Minneapolis, MN 55404

Bankruptcy Case No.: 06-42108

Chapter 11 Petition Date: September 26, 2006

Court: District of Minnesota (Minneapolis)

Judge: Dennis D. O'Brien

Debtor's Counsel: Joseph W. Dicker, Esq.
                  Joseph W. Dicker PA
                  1406 West Lake Street, Suite 208
                  Minneapolis, MN 55408
                  Tel: (612) 827-5941
                  Fax: (612) 822-1873

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 6 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Franklin Bank                 Bank Loan               $1,550,000
525 Washington Avenue North
Minneapolis, MN 55401

Associated Bank               Bank Loan                 $475,000
1395 Commerce Drive
Mendota Heights, MN 55120

Bourgets Bike Works Inc.      Bank Loan                 $210,000
21407 North Central Avenue
Phoenix, AZ 85024

Mark Bryant                   Bank Loan                 $201,100
5299 DTC Boulevard
Suite 215
Englewood, CO 80111

William Wingerd               Bank Loan                 $175,000
4081 Oak Street
Orono, MN 55356

Provest Financial Services    Bank Loan                 $110,000
1530 Minnetonka Boulevard
Minnetonka, MN 55345


WARNER CHILCOTT: Moody's Assigns Loss-Given-Default Rating
----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. pharmaceutical sector this week, the
rating agency confirmed its B2 Corporate Family Rating for Warner
Chilcott Company, Inc.  Additionally, Moody's revised or held its
probability-of-default ratings and assigned loss-given-default
ratings on these loans and bond debt obligations:

Issuer: Warner Chilcott Company, Inc.:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $870 Million
   Senior Secured
   Term loan due 2012     B2        B1     LGD3       36%

   $239 Million
   Delayed Draw
   Secured Term Loan      B2        B1     LGD3       36%

   $150 million
   Senior Secured
   Revolving Credit
   Facility due 2011     Ba1       Ba1     LGD4       36%

Issuer: Warner Chilcott Holdings Company III, Limited:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $162 Million
   Senior Secured
   Term loan due 2012     B2        B1     LGD3       36%

Issuer: Warner Chilcott Corporation:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $351 million
   Senior Secured
   Term loan due 2012     B2       B1      LGD3       36%

   $600 Million
   Senior Subordinated
   Notes due 2015        Caa1     Caa1     LGD5       89%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Warner Chilcott is a marketer and developer of branded
pharmaceutical products focused on the U.S. women's healthcare and
dermatology markets.


WATSON PHARMACEUTICALS: Moody's Assigns Loss-Given-Default Rating
-----------------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. pharmaceutical sector this week, the
rating agency confirmed its Ba1 Corporate Family Rating for Watson
Pharmaceuticals, Inc.  Additionally, Moody's revised or held its
probability-of-default ratings and assigned loss-given-default
ratings on these loans and bond debt obligations:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
   $300 Million
   Revolving Credit
   Facility due 2008     Ba1       Baa2    LGD2       13%

   $500 Million
   Revolving Credit
   Facility due 2011     Ba1       Baa3    LGD3       36%

   $650 Million
   Term Loan due 2011    Ba1       Baa3    LGD3       36%

   $575 Million
   Convertible
   Debentures due 2023   Ba2       Ba2     LGD5       87%

Moody's explains that current long-term credit ratings are
opinions about expected credit loss, which incorporate both the
likelihood of default and the expected loss in the event of
default.  The LGD rating methodology will disaggregate these two
key assessments in long-term ratings.  The LGD rating methodology
will also enhance the consistency in Moody's notching practices
across industries and will improve the transparency and accuracy
of Moody's ratings as Moody's research has shown that credit
losses on bank loans have tended to be lower than those for
similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock.  Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% to 9%) to
LGD6 (loss anticipated to be 90% to 100%).

Headquartered in Corona, California, United States, Watson
Pharmaceuticals, Inc., is a specialty pharmaceutical company
focused on branded and generic products.  Revenues in 2005 totaled
approximately $1.6 billion.


WELLMAN INC: Consolidating all Fiber Production in Palmetto Plant
-----------------------------------------------------------------
Wellman, Inc., plans to restructure its U.S. fiber operations,
which are intended to improve its operating results, reduce
working capital and lower overall debt.

The Company will consolidate all of its U.S. fiber production to
its Palmetto plant, located in Darlington, South Carolina and
close the fiber capacity located at its Johnsonville, South
Carolina facility.  The Company expects to sell its Material
Recycling Division, which converts post-consumer PET bottles to
flake and certain equipment used to produce Wellstrand, a
specialty coarse denier fiber, both located at its Johnsonville
facility.  All of the actions are expected to result in a pre-tax
non-cash charge of $30 million to $35 million in the third quarter
of 2006.

Joseph C. Tucker, vice president of the Fiber and Recycled
Products Group, stated, "We will continue to meet our Johnsonville
customers' requirements for high quality fiberfill from our
Palmetto plant which has the capacity to produce 500 million
pounds of polyester staple fiber annually."

Thomas M. Duff, chairman and chief executive officer, stated,
"Consolidating our U.S. fiber production is expected to increase
operating income and reduce working capital.  We will be able to
operate one fiber facility at close to full capacity rather than
operating two under-utilized facilities.  This will allow us to
lower our overall costs and remain more competitive in our
domestic fiber operations.  This decision is not a reflection on
the dedication or abilities of our Johnsonville employees."

The Company also disclosed that it is exploring strategic
alternatives for its European fiber and PET resin businesses.
Mr. Duff stated, "We are reviewing the performance of these
businesses and exploring strategic alternatives with the goal of
improving our overall corporate value."

Wellman, Inc. manufactures and markets high-quality polyester
products, including PermaClear(R) brand PET (polyethylene
terephthalate) packaging resin and Fortrel(R) brand polyester
fiber.  One of the world's largest PET plastic recyclers, Wellman
utilizes a significant amount of recycled raw materials in its
manufacturing operations.

                         *     *     *

Wellman carry Standard & Poor's Ratings Services' 'B+' corporate
credit rating.


WINDSOR QUALITY: Moody's Assigns Loss-Given-Default Ratings
-----------------------------------------------------------
In connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology for the U.S. Consumer Products, Beverage, Toy, Natural
Product Processors, Packaged Food Processors, and Agricultural
Cooperative sectors, the rating agency confirmed its B1 Corporate
Family Rating for Windsor Quality Food Co. Ltd.

Additionally, Moody's revised its probability-of-default ratings
and assigned loss-given-default ratings on these loans facilities:

                                                   Projected
                        Old POD  New POD  LGD      Loss-Given
   Debt Issue           Rating   Rating   Rating   Default
   ----------           -------  -------  ------   ----------
Sr. Sec. Revolving
Credit Facility
Due 2009                  B1       Ba3     LGD3        38%

Sr. Sec. Term Loan A
Due 2009                  B1       Ba3     LGD3        38%

Sr. Sec. Term Loan B
Due 2010                  B1       Ba3     LGD3        38%

Moody's current long-term credit ratings are opinions about
expected credit loss, which incorporate both the likelihood of
default and the expected loss in the event of default.

The LGD rating methodology will disaggregate these two key
assessments in long-term ratings.  The LGD rating methodology will
also enhance the consistency in Moody's notching practices across
industries and will improve the transparency and accuracy of
Moody's ratings as its research has shown that credit losses on
bank loans have tended to be lower than those for similarly rated
bonds.

Probability-of-default ratings are assigned only to issuers, not
specific debt instruments, and use the standard Moody's alpha-
numeric scale.  They express Moody's opinion of the likelihood
that any entity within a corporate family will default on any of
its debt obligations.

Loss-given-default assessments are assigned to individual rated
debt issues -- loans, bonds, and preferred stock Moody's opinion
of expected loss are expressed as a percent of principal and
accrued interest at the resolution of the default, with
assessments ranging from LGD1 (loss anticipated to be 0% - 9%) to
LGD6 (loss anticipated to be 90% - 100%).

Houston, Tex.-based Windsor Quality Food Company Ltd. --
http://www.windsorfoods.com/-- manufactures frozen foods offering
Italian cuisine, Pan-Asian appetizers, Southwestern foods, Mexican
mainstays, and appetizers.  The Company's products includes
Bernardi(R), Golden Tiger(R), The Original Chili Bowl(R), Jose
Ole(R), Posada(R), Whitey's(R) Chili, Cripple Creek(R), and Fred's
for Starters(R).


WINN-DIXIE: Court Okays Assumption of 16 Store Leases
-----------------------------------------------------
The Honorable Jerry A. Funk of the U.S. Bankruptcy Court for the
Middle District of Florida authorizes Winn-Dixie Stores, Inc., and
its debtor-affiliates to assume the leases for Store Nos. 2, 81,
167, 218, 222, 243, 250, 279, 359, 375, 631, 777, 1537, 2211,
2267, and 2289, effective as of the effective date of their Joint
Plan of Reorganization.

The Court fixes the cure amounts for the assumed leases not
subject to cure objections by landlords.

Judge Funk orders the Debtors to pay on the Effective Date the
cure amounts due to landlords who filed cure objections.  If the
parties are unable to resolve the cure objections consensually,
the Debtors are directed to set the objections for hearing before
the Court.

The Debtors' request and the cure and assumption objections filed
by the landlords for Store Nos. 153, 231, 281, 426, 454, 460,
556, 698, 2258, 2301, 2311, and 2348 will be treated by a
separate Court order.

The Court continues the hearing on the Debtors' request with
respect to the leases of Store Nos. 637, 651, 656, 660, and 737 to
Sept. 21, 2006.

Judge Funk clarifies that if the Effective Date does not occur,
the Court Order will be null and void.

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)


WINN-DIXIE: Ct. OKs Rejection of Store # 1059 Lease as of Aug. 31
-----------------------------------------------------------------
The Honorable Jerry A. Funk of the U.S. Bankruptcy Court for the
Middle District of Florida authorized Winn-Dixie Stores, Inc., and
its debtor-affiliates to reject their lease on Store No. 1059 as
of Aug. 31, 2006.

Judge Funk directs the landlord, Windward Partners IV, LP, to file
any claims resulting from the rejection of the Store No. 1059
Lease by Sept. 30, 2006.

As reported in the Troubled Company Reporter on Aug. 28, 2006,
Winn-Dixie Stores, Inc., and Windward Partners IV, LP, were
parties to a lease dated July 29, 1994, for the Debtors' Store
No. 1059 located in Taylors, South Carolina.  Pursuant to the
Lease, Winn-Dixie pays Windward $422,000 in rent each year.

In August 2003, Winn-Dixie subleased the Premises to Pro-Fit
Management, Inc.  Under the Sublease, Pro-Fit is required to pay
Winn-Dixie monthly rent at graduated rates between $100,000 and
$250,000 a year.

After Winn-Dixie's bankruptcy filing, Pro-Fit failed to pay the
rent so Winn-Dixie terminated the Sublease effective August 8,
2006.  However, Pro-Fit remained in possession of the Premises.

According to Cynthia C. Jackson, Esq., at Smith Hulsey & Busey,
in Jacksonville, Florida, the Debtors no longer need the store
and that even when paid by Pro-Fit, the rent is not sufficient to
cover the payments due under the Lease.  Rejection of the Lease
will save the Debtors approximately $422,000 a year.

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)


* A. Kintzinger Joins Public Finance Practice at Hunton & Williams
------------------------------------------------------------------
Hunton & Williams LLP disclosed that national municipal bond
lawyer Andrew R. Kintzinger has joined the firm as Counsel with
its public finance practice.  Mr. Kintzinger, whose practice
includes the federal securities and tax laws applicable to
municipal bonds, will be based in the firm's District of Columbia
office.

"In recent years the IRS and SEC have substantially increased
regulation and rule enforcement for municipal bonds," said John
O'Neill, who co-heads the firm's public finance practice.  "Drew
is a first-rate lawyer who enjoys a national reputation among the
public finance bar and the municipal investment banking community.
He is well-known to the regulators at the IRS and the SEC, having
represented a myriad of clients in matters before each agency."

Mr. Kintzinger joined Hunton & Williams from Preston Gates &
Ellis, Seattle, Washington. He earned his J.D. at the University
of Iowa College of Law, where he was articles editor of the Iowa
Law Review, and his A.B. at Dartmouth College.  Mr. Kintzinger
served as President of The National Association of Bond Lawyers
from 1994 to 1995 and is a member of the editorial board for its
Federal Securities Laws of Municipal Bonds Deskbook.  He has been
a frequent moderator and speaker at NABL education programs.

Mr. Kintzinger will take a leading role in Hunton & Williams
municipal securities regulatory and enforcement practice and
special tax representations practice in the Washington, D.C.
office.  He joins Hunton & Williams senior bond partners William
McBride and Dean Pope, each a past president of the National
Association of Bond Lawyers, in serving clients with special needs
related to public finance and tax-exempt bonds.

Listed in the "Red Book" of municipal bond attorneys for more than
40 years, Hunton & Williams ranks among the most active law firms
in the issuance of tax-exempt securities.  Its lawyers have
advised states, local governments, housing agencies and special
authorities on virtually every kind of borrowing available to
public bodies, including variable rate, credit enhanced and short-
term transactions.

Its geographic presence in nine states, including the District of
Columbia and the firm's recent opening of a California office, has
allowed us to serve as bond, underwriter's tax or disclosure
counsel on transactions in approximately 40 states, D.C. and the
U.S. Virgin Islands.  In the Mid-Year Review 2006 bond counsel
rankings published in the August edition of The Bond Buyer, Hunton
& Williams was ranked #2 in the Southeast for all publicly offered
issues, as well as #3 nationally for competitive sales.

                     About Hunton & Williams

Hunton & Williams LLP provides legal services to corporations,
financial institutions, governments and individuals, as well as to
a broad array of other entities.  Since our establishment more
than a century ago, Hunton & Williams has grown to 850 attorneys
serving clients in 100 countries from 18 offices around the world.
While our practice has a strong industry focus on energy,
financial services and life sciences, the depth and breadth of our
experience extends to more than 60 separate practice areas,
including bankruptcy and creditors rights, commercial litigation,
corporate transactions and securities law, intellectual property,
international and government relations, regulatory law, products
liability, and privacy and information management.


* NatCity Investments buys SSG Capital Advisors
-----------------------------------------------
NatCity Investments, Inc., the broker dealer subsidiary of
National City Corporation (NYSE:NCC) the nation's ninth-largest
bank, has acquired the investment banking assets of SSG Capital
Advisors L.P. SSG's clients will continue to receive the high
level of service and results that the principals of SSG have
prided themselves in providing.

SSG has consistently ranked among the nation's 10 largest
restructuring focused investment banks by the number of
transactions it has made in each of the last five years, as ranked
by The Deal.

SSG president Mark E. Chesen and managing director J. Scott Victor
have been named senior managing directors at National City, where
they will report to Sean Dorsey, Senior Managing Director and Head
of Investment Banking, and will be joined by all of their SSG
colleagues at NatCity Investments, Inc.

"We don't want to change these guys. We love what they do. SSG has
built a well respected national restructuring practice" Sean
Dorsey said.  "We're building an investment bank brick by brick",
he said.  "National City would likely make acquisitions of other
niche investment banks.  National City's existing investment-
banking business, focuses primarily on representing profitable
middle market companies, and complements SSG's focus on
representing companies facing financial challenges", he said.

National City offers "SSG the ability to dramatically expand it's
geographical footprint," Mr. Chesen said and Mr. Victor added, "it
allows us to market our services to National City's existing
client base of over 20,000 companies throughout the Midwest".

For further information contact:

Senior Managing Directors and Co-Heads, Special Situations Group

    * Mark E. Chesen
      Tel: (610) 940-5801

    * J. Scott Victor
      Tel: (610) 940-5802


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
September 28, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      West Coast Plan of Reorganization Conference
         The Olympic Collection Banquet, Los Angeles, CA
            Contact: http://www.airacira.org/

September 29, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Quarterly Networking Luncheon
         East Bank Club, Chicago, IL
            Contact: 815-469-2935 or www.turnaround.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 5, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Panel & Breakfast Meeting: Financial Fraud
         Center Club, Baltimore, MD
            Contact: http://www.turnaround.org/

October 5, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Negotiations Workshop
         Standard Club, Chicago, IL
            Contact: 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 17, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Updates on the New Bankruptcy Law
         Kansas City, Missouri
            Contact: http://www.turnaround.org/

October 18-19, 2006
   EUROMONEY
      2nd Annual Latin America Syndicated Loans Conference
         JW Marriott Hotel, Miami, FL
            Contact: http://www.euromoneyplc.com/

October 19, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA of Nevada's 1st Breakfast Meeting
         The A,B,C's of Valuing and Selling a Business
            Palace Station, Las Vegas, NV
               Contact: http://www.turnaround.org/

October 19, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Navigating the Potholes and Speed Bumps on Today's
      Economic Highway
         Waller Lansden Dortch & Davis
            Nashville, TN
               Contact: http://www.turnaround.org/

October 19, 2006
   BEARD AUDIO CONFERENCES
      Surviving the Digital Deluge:
         Best Practices in e-Discovery and Records Management
         for Bankruptcy Practitioners and Litigators
            Contact: 240-629-3300;
            http://www.beardaudioconferences.com/

October 19, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Billards Networking Night - Young Professionals
         TBA, New Jersey
            Contact: 908-575-7333 or http://www.turnaround.org/

October 25, 2006
   BEARD AUDIO CONFERECES
      Deepening Insolvency - Widening Controversy: Current Risks,
      Latest Decisions, Review Risks, Examine Latest Decisions
      Affecting Directors, Advisors and Lenders of Troubled
      Companies
            Contact: http://www.beardaudioconferences.com/
                     240-629-3300

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
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      AIRA/NCBJ Dessert Reception
         Marriott, San Francisco, CA
            Contact: 415-896-1600 or http://www.airacira.org/

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 3, 2006
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      AIRA/NCBJ Breakfast Program
         Marriott, San Francisco, CA
            Contact: 415-896-1600 or http://www.airacira.org/

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 9, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Webinar "Second Lien Financing or Investing: Are
      There Opportunities for You?"
         TMA HQ, Chicago, IL
            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 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon Program - Cost Containment Strategies
         St. Louis, MO
            Contact: http://www.turnaround.org/

November 14, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Holiday Cocktail Reception Honoring the
      Bankruptcy Benches of the Southern &
      Eastern Districts of New York and New Jersey
      Association of the Bar of the City of New York
         New York, NY
            Contact: 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 17, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Breakfast with Harry Nolan, Author of
         Airline without a Pilot - Lessons in Leadership
         Westin Buckhead, Atlanta, GA
            Contact: http://www.turnaround.org/

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 28, 2006
   TURNAROUND MANAGEMENT ASSOCIATION
      Joint TMA Florida/ACG Tampa Bay Luncheon
      Buying and Selling a Troubled Company
         Centre Club, Tampa, FL
            Contact: 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 11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Lender's Panel
         University Club, Jacksonville, FL
            Contact: http://www.turnaround.org/

January 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual Lender's Panel Breakfast
         Westin Buckhead, Atlanta, GA
            Contact: http://www.turnaround.org/

January 17, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

January 17-19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Distressed Investing Conference
         Wynn, Las Vegas, NV
            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 21, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

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 12, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or http://www.turnaround.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/

May 14, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Annual TMA Atlanta Golf Outing
         White Columns, Atlanta, GA
            Contact: 678-795-8103 or http://www.turnaround.org/

May 16, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 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, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or www.turnaround.org

July 12-15, 2007
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Marriott, Newport, RI
            Contact: 1-703-739-0800; http://www.abiworld.org/

July 18, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

September 19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

October 10-13, 2007
   NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
      National Conference of Bankruptcy Judges
         Orlando, Florida
            Contact: http://www.ncbj.org/

October 11, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL
            Contact: 561-882-1331 or http://www.turnaround.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/

December 19, 2007
   TURNAROUND MANAGEMENT ASSOCIATION
      South Florida Dinner
         TBA, South FL
            Contact: 561-882-1331 or http://www.turnaround.org/

January 10, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      Luncheon
         University Club, Jacksonville, FL

March 25-29, 2008
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Spring Conference
         Ritz Carlton Grande Lakes, Orlando, Florida
            Contact: http://www.turnaround.org/

June 4-7, 2008
   ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
      24th Annual Bankruptcy & Restructuring Conference
         JW Marriott Spa and Resort, Las Vegas, NV
            Contact: http://www.airacira.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, Melvin C. Tabao, Rizande
B. Delos Santos, Cherry A. Soriano-Baaclo, Christian Q. Salta,
Jason A. Nieva, Lucilo M. Pinili, Jr., Tara Marie A. Martin and
Peter A. Chapman, Editors.

Copyright 2006.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $725 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

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