TCR_Public/061023.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Monday, October 23, 2006, Vol. 10, No. 252

                             Headlines

ACTUANT CORPORATION: Moody's Assigns Loss-Given-Default Rating
ADELPHIA COMMS: Court Approves 2nd Disclosure Statement Supplement
ADELPHIA COMMS: Verizon Wants $1,101,822 Admin. Claim Allowed
AIR AMERICA: Court Sets Final DIP Hearing on October 31
ALTRA INDUSTRIAL: Moody's Assigns Loss-Given-Default Rating

AMERICA CAPITAL: Hires Cooper & Kirk as Litigation Counsel
ARMSTRONG WORLD: Asbestos Trust Discloses Acquired Common Shares
BERKELEY STREET: Moody's Cuts Rating on Senior Notes to Caa2
BEST MANUFACTURING: Taps Glass & Associates as Crisis Manager
BETTY'S HOMES: Voluntary Chapter 11 Case Summary

BOSTON SCIENTIFIC: Earns $76 Million for Quarter Ended Sept. 30
BRIDGEVIEW VILLAS: Case Summary & Eight Largest Unsec. Creditors
CABLEVISION SYSTEM: Board Committee Taps Lehman and Morgan Stanley
CAP CANA: Moody's Assigns B3 Rating to $200MM Senior Notes
CAP CANA: Fitch Puts Preliminary B Rating on Senior Secured Notes

CHEMTURA CORP: S&P Affirms BB+ Rating & Revises Outlook to Stable
CLIENTLOGIC CORP: SITEL Buy Plan Prompts S&P's Positive Watch
CNET NETWORKS: Fails to Get Needed Consents from 0.75% Noteholders
CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default
COLLINS & AIKMAN: Resolves Tooling Dispute with Huron Mold

CONTINENTAL AIRLINES: Strong Earnings Prompt S&P's Stable Outlook
CONTINENTAL AIRLINES: Good Performance Cues Fitch to Lift Ratings
COREL CORP: Reports $5.5 Million Net Income in Third Quarter
CORUS GROUP: Confirms Tata Steel's $10 Billion Takeover Proposal
COUDERT BROTHERS: Meeting of Creditors Scheduled on October 31

COUDERT BROTHERS: Court Approves Stein & Lubin as Special Counsel
CREDIT SUISSE: Lowers Rating on Class B-1 Trust Transaction to BB+
DALRADA FINANCIAL: Pohl McNabola Raises Going Concern Doubt
DANA CORP: Court Approves Rejection of Nine Contracts and Leases
DANA CORP: Gets Court OK to Assume & Assign Liberty Property Lease

DAVITA INC: Board Appoints Roger Valine as Member to Three Panels
DELPHI CORP: To Build Hybrid Vehicle Electronics for Ford
DELPHI CORP: Cerberus Could Buy Equity Stake
DESIGN WITHIN: Nasdaq Grants Form 10-Q Filing Extension
ENCORE MEDICAL: Tenders Offer for 9.75% Senior Subordinated Notes

FALCON PRODUCTS: Debtor Can Terminate S&J Pension Plan
FEDERAL MOGUL: Court Allows Wilfred Morin, Jr. to Continue Suit
FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA
FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
GCI INC: Good Performance Prompts S&P's Stable Outlook

GE COMMERCIAL: Fitch Holds Low-B Ratings on 8 Certificate Classes
GENERAL FIRE: Fitch Affirms then Withdraws BB- IFS Rating
GMAC COMMERCIAL: S&P Hacks Rating on Class F Certificates to D
GOODYEAR TIRE: $975 Million Drawdown Cues Fitch's Negative Watch
GOSS GRAPHIC: Court Says Bank One Violated Automatic Stay

GREAT ATLANTIC: Posts $500,000 Net Loss in Quarter Ended Sept. 9
GREENWOOD RACING: S&P Rates Proposed $265 Mil. Senior Loan at B+
GS MORTGAGE: Fitch Rates $3.067 Million Certificates at BB+
HAWS & TINGLE: Court OKs Veritas Advisory as Financial Consultant
HCA INC: Shareholders' Special Meeting Set for November 16

HCA INC: $33 Bil. Merger Deal Cues S&P's B+ Corporate Debt Rating
HCA INC: Moody's Places Provisional Ratings to Proposed Financing
HEXION SPECIALTY: Debt-Funded Dividend Prompts S&P to Cut Ratings
INT'L BIOANALOGICS: Inks Amalgamation Agreement with reWORKS Inc.
INTERSTATE BAKERIES: Post $379M Net Loss in Year Ended May 25, '05

INTERSTATE BAKERIES: Posts $33M Net Loss in Year Ended May 24, '04
INVESCO CBO: Fitch Holds BB- Rating on $8 Million Notes
KB HOME: Disputes Notice of Default for 6-1/4% Senior Notes
KERR-MCGEE: Anadarko Guarantee Prompts S&P to Upgrade Ratings
MERIDIAN AUTOMOTIVE: Ionia City Council Grants Two Tax Exemptions

NATIONAL HEALTH: Strategy Evaluation Plan Cues S&P's Neg. Watch
NICHOLAS-APPLEGATE: Moody's Puts B1-Rated $10-Mil. Notes on Watch
NORTHWEST PARKWAY: S&P Revises Outlook on Bonds to Negative
NOVA CHEMICALS: Moody's Pares Ratings to $1.25 Billion Debt
O&M STAR: S&P Rates $278 Million Senior Secured Loan at BB

OMNOVA SOLUTIONS: Good Performance Prompts S&P to Upgrade Ratings
OPEN TEXT: Mulls Streamlining of Employees and Facilities
PEABODY ENERGY: Moody's Assigns Loss-Given-Default Rating
PETCO ANIMAL: Moody's Affirms Ba3 Rating on $700MM Secured Loan
PHARMANET DEVELOPMENT: Launches Sale-Leaseback of Quebec Facility

PINE VALLEY: Granted Creditor Protection Under CCAA
PINNOAK RESOURCES: Moody's Assigns Loss-Given-Default Rating
PNA GROUP: Moody's Assigns Loss-Given-Default Rating
PRIMARIS RETAIL: DBRS Holds Issuer Rating at BB with Stable Trend
PRIME AMERICAN: Case Summary & 33 Largest Unsecured Creditors

RADNOR HOLDINGS: Blocks Panel's Move to Extend Bidding Process
RAPID PAYROLL: Court Approves Robinson Diamant as General Counsel
REGAL CINEMAS: S&P Rates $1.8 Billion Secured bank Loan at BB-
REGAL CINEMAS: Moody's Affirms B2 Rating on Sr. Unsecured Debt
RICHARD BRYANT: Case Summary & 20 Largest Unsecured Creditors

ROC PREF: S&P Places Preferred Shares on CreditWatch
RYERSON INC: Moody's Assigns Loss-Given-Default Rating
SAINT VINCENTS: Inks Stipulation for BAL Lease Assumption
SEARS CANADA: S&P Holds BB+ Rating and Revises Outlook to Stable
SILICON GRAPHICS: Assumes 107 Contracts & Fixes Cure Costs

SILICON GRAPHICS: Gets Court Approval to Assume Solectron Contract
SOLO CUP: Incurs $299 Million Net Loss in 2006 Second Quarter
SOLO CUP: Ends Review of Accounting Issues & Restates 2 Financials
SOLO CUP: S&P Cuts Corporate Credit Rating to CCC+ & Removes Watch
SND ELECTRONICS: Wants Atwell Curtis as Collection Agent

SUFFOLK RESEARCH: Case Summary & 20 Largest Unsecured Creditors
SYLVEST FARMS: Wants Excl. Plan-Filing Period Extended to Feb. 12
SYLVEST FARMS: Can Enter Into Document Storage Pact with DataBank
TRM CORPORATION: S&P Withdraws CCC Senior Secured Rating
TYRINGHAM HOLDINGS: Hires FTI Consulting as Financial Advisors

TYRINGHAM HOLDINGS: Panel Hires Otterbourg Steindler as Counsel
U.S. STEEL: Moody's Assigns Loss-Given-Default Rating
USA COMMERCIAL: Wants to Alter Terms of Palm Harbor, Marlton Loans
USEC INC: Moody's Assigns Loss-Given-Default Rating
VARTEC TELECOM: Court Okays Lain Faulkner as Trustee's Accountant

VASOMEDICAL INC: Incurs $539,000 Net Loss for Period Ended Aug. 31
WESTERN APARTMENT: U.S. Trustee Balks at Disclosure Statement
WESTERN APT: LJL Says Disclosure Statement Concealed Lease Default
WISE METALS: Moody's Assigns Loss-Given-Default Rating
WORLDCOM: Investors Set to Receive Initial $150MM Payout from SEC

* Cerberus Capital Appoints John Snow as Chairman
* Lawrence Summers to Join The D. E. Shaw Group
* Lisa Poulin Joins Corporate Revitalization as Partner

* BOND PRICING: For the week of October 16 -- October 20, 2006

                             *********

ACTUANT CORPORATION: 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. manufacturing sector, the rating agency
affirmed its Ba2 Corporate Family Rating for Actuant Corporation.

Additionally, Moody's held its Ba2 ratings on the company's
$250 million Senior Unsecured Revolver Due 2009, and $250 million
Senior Term Loan Due 2009.  Moody's assigned those debentures an
LGD3 rating suggesting lenders will experience a 43% 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 6100 N. Baker Road Milwaukee, Wisconsin, Actuant
Corporation - http://www.actuant.com- is engaged in the  
production of a range of tools and hydraulic equipment.


ADELPHIA COMMS: Court Approves 2nd Disclosure Statement Supplement
------------------------------------------------------------------
The Hon. Robert E. Gerber of the U.S. Bankruptcy Court for the
Southern District of New York approved the Second Disclosure
Statement Supplement of Adelphia Communications Corporation and
its debtor-affiliates, finding that it contains "adequate
information" within the meaning of Section 1125 of the Bankruptcy
Code.

The ACOM Debtors delivered to the Court further revised drafts of
the Fifth Amended Plan of Reorganization and the related Second
Disclosure Statement Supplement, including complete exhibits of
the position statements of certain creditors and creditor groups.

Judge Gerber overruled the disclosure statement objections to the
extent not resolved on the record of the Disclosure Statement
Hearings and has set Oct. 18, 2006, as the record date with
respect to all holders of claims and equity interests in the ACOM
Debtors entitled to vote on the Plan.

With respect to holders of Bank Claims entitled to vote on the
Plan, Judge Gerber directed the administrative agent for each
credit facility to provide the Balloting Agent a written list of
the names of the participants in its particular syndicate by
Class, including that participant's contact information and voting
amount as of the October 18, 2006.

All ballots and master ballots must be delivered to the Balloting
Agent by November 27, 2006, at 4:00 p.m., prevailing New York
Time.

Except as ordered by the Court, solely for purposes of voting to
accept or reject the Plan and not for the purpose of the allowance
or distribution, each Existing Securities Laws Claim classified
in:

    (a) Class ACC 8 -- Preferred Stock Interests, or
    (b) Class ACC 9 - Common Stock Interests,

for which a proof of claim has been timely filed will be allowed
for voting purposes in the amount of one share of the security
corresponding to that Existing Securities Laws Claim.

Objections to the Plan must be filed by Nov. 24, 2006, at
4:00 p.m. (prevailing New York Time).

The Court will convene a hearing on Dec. 7, 2006, at 9:45 a.m.,
(prevailing New York Time) to consider certain issues in
connection with confirmation of the Plan.

A full-text copy of the Modified Draft Fifth Amended Plan dated
Oct. 16, 2006, may be viewed at no charge at:

              http://ResearchArchives.com/t/s?13bd

A full-text copy of the revised Second Disclosure Statement dated
October 16, 2006, may be viewed at no charge at:

              http://ResearchArchives.com/t/s?13be

Based in Coudersport, Pa., Adelphia Communications Corporation
(OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television  
company.  Adelphia serves customers in 30 states and Puerto Rico,
and offers analog and digital video services, 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 Debtors in their
restructuring efforts.  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 No. 153; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


ADELPHIA COMMS: Verizon Wants $1,101,822 Admin. Claim Allowed
-------------------------------------------------------------
Certain of the operating telephone company subsidiaries of Verizon
Communications Inc. ask the U.S. Bankruptcy Court for the Southern
District of New York to allow them a $1,101,822 administrative
expense claim for unpaid services they provided to Adelphia
Communications Corporation and its Debtor affiliates, including
Century Communications Corporation.

Verizon filed various proofs of claim in the ACOM Debtors'
bankruptcy cases totaling in excess of $15,100,000 for the
telecommunications services, products and facilities that Verizon
provided to the ACOM Debtors prior to their filing for chapter 11
protection.

In 2004, the ACOM Debtors and Verizon entered into a stipulation
resolving the Claims, as well as claims for postpetition payables
the parties owed to the other.  The Court approved the Stipulation
in December 2004.

The Stipulation specifically reserved Verizon's rights to assert
claims against the ACOM Debtors for charges for Verizon's services
provided on or after the date of filing for chapter 11 protection
of the ACOM Debtor's and billed in the ordinary course on or after
April 1, 2004.

During the course of the ACOM Debtors' Chapter 11 cases, Verizon
continued providing services and facilities to the ACOM Debtors.

Verizon asserts that the ACOM Debtors still owe it $1,101,822,
representing the net amount of outstanding postpetition charges
for the postpetition Verizon services billed in the ordinary
course on or after April 1, 2004, to July 31, 2006 -- the
Effective Date of the Third Modified Fourth Amended Joint Plan of
Reorganization for the Century-TCI Debtors and the Parnassos
Debtors.

Philip D. Anker, Esq., at Wilmer Cutler Pickering Hale and Dorr
LLP, in New York, maintains that the postpetition services and
facilities rendered by Verizon to the ACOM Debtors gave rise to
administrative expense priority claims allowable under Section
503(b)(1)(A) of the Bankruptcy Code.

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 No. 149; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


AIR AMERICA: Court Sets Final DIP Hearing on October 31
-------------------------------------------------------
The Hon. Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York will convene a hearing at 10:00
a.m., Prevailing Eastern Time, on Oct. 31, 2006, at Room 610, One
Bowling Green, in New York City, to consider final approval of Air
America Radio's request to obtain up to $2.6 million of debtor-in-
possession financing from Democracy Allies LLC.

As reported in the Troubled Company Reporter on Oct. 16, the
Debtor has received court permission to obtain an initial $900,000
in financing from Democracy Allies.  Repayment of all loans from
the DIP financing facility is secured by a first priority
perfected lien on all of the Debtor's assets, except causes of
action.  

Objections to the proposed DIP financing agreement must be filed
with the Court no later than 4:00 p.m., on Oct. 29, 2006, with
copies of the objection furnished to:

       a) Tracy L. Klestadt, Esq.
          Sean C. Southard, Esq.
          Klestadt & Winters, LLP
          Counsel to the Debtor
          292 Madison Avenue, 17th Floor
          New York, NY 10017

       b) Office of the United States Trustee
          Attention: Andrew Velez Rivera, Esq.
          33 Whitehall Street
          New York, NY 10004

       c) Alan D. Smith, Esq.
          Bruce G. MacIntyre, Esq.
          Perkins Coie LLP
          Counsel to Democracy Allies LLC
          1201 Third Avenue, Suite 4000
          Seattle, WA 98101

Air America Radio, aka Piquant LLC -- http://www.airamerica.com/-
- is a full-service radio network and program syndication service
in the United States.  The network features discussion and
information programs reflecting a liberal, left wing, or
progressive point of view.  Air America filed a voluntary Chapter
11 petition on Oct. 13, 2006 (Bankr. S.D. N.Y. Case No: 06-12423)
Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor.  No Official Committee of Unsecured Creditors has been
appointed in this case.  When the Debtor filed for bankruptcy, it
disclosed total assets of approximately $4.3 million and total
debts of over $20 million.


ALTRA INDUSTRIAL: 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. manufacturing sector, the rating agency
affirmed its B2 Corporate Family Rating for Altra Industrial
Motion, Incorporated, as well as revised its rating on the
company's $165 million Senior Secured Notes due 2011 to B1 from
B3.  Moody's assigned these debentures an LGD3 rating suggesting
that noteholders will experience a 39% loss in the event of a
default.

Additionally, Moody's also revised its ratings on the company's
$60 million 11.25% Senior Unsecured Notes Due 2013 with an LGD5,
rating suggesting that noteholders will experience an 80% loss in
the event of 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 Quincy, Massachusetts, Altra Industrial Motion,
Incorporated - http://www.altramotion.com- is a supplier of power  
transmission and motion control products.


AMERICA CAPITAL: Hires Cooper & Kirk as Litigation Counsel
----------------------------------------------------------
The U.S Bankruptcy Court of the Southern District of Florida
gave America Capital Corporation permission to employ Charles J.
Cooper, Esq., and the law firm of Cooper & Kirk, PLLC, as its
special litigation counsel.

Mr. Cooper and his firm is expected to pursue and prosecute the
government litigation.  On Aug. 8, 2006, the Debtor and
Transcapital Financial Corp., a related debtor and debtor-in-
possession, filed a complaint in the U.S. Federal Claims Court
asserting both breach of contract and takings claim in a case
styled American Capital Corp. and Transcapital Financial Corp. v.
United States.

However, the firm told the Court that it agreed to represent the
Debtors in consideration of:

     i) standard fees capped at $250,000 and incentive fee of
        $30,822 plus 15% of cash recovered in the government
        litigation;

    ii) cash in the amount of 15% of the fair value of all non-
        monetary consideration received in compromise of the
        government litigation; and

   iii) reimbursement for expenses, including an amount equal to
        $94,495.76 in out of pocket expenses.

In addition, the firm advanced $29,315.97 to pay a portion of
discovery expenses in connection with the government litigation.

Mr. Cooper told the Court that he bill $375 per hour for this
engagement and discloses firm's other professionals bill:

     Designation           Hourly Rates
     -----------           ------------
     Attorneys              $110-$300
     Legal Assistants        $50-$105

Mr. Cooper assured the Court that his firm does not hold any
interest adverse to the Debtors, its estates and creditors.

Mr. Cooper can be reached at:

     Charles J. Cooper, Esq.
     Cooper & Kirk
     555 Eleventh Street N.W., Suite 750
     Washington, D.C. 20004
     Tel: (202) 220-9600
     Fax: (202) 220-9601
     http://www.cooperkirk.com/

Headquartered in Miami, Florida, America Capital Corporation
holds a 65.19% interest in TransCapital Financial Corporation.  
TransCapital Financial is a holding and management company that
conducted substantially all of its operations through its wholly-
owned subsidiary, Transohio Savings Bank, FSB.  Transohio Savings'
key activities as a savings and loans institution were banking and
lending and its primary lending activity was the originating and
purchasing of loans secured by mortgages on residential
properties.  Transohio Savings also endeavored to generate
residential loan originations through branch personnel and real
estate brokers.  Mobile home and home improvement loans were
generated through dealers and contractors and additionally,
Transohio Savings made construction loans generated by contractors
that usually extended to not more than one year in length.

America Capital filed for chapter 11 protection on June 19, 2006
(Bankr. S.D. Fla. Case No.  06-12645).  Mindy A. Mora, Esq., at
Bilzin Sumberg Baena Price & Axelrod LLP, represents the Debtor.  
When the Debtor filed for protection from its creditors, it listed
total assets of $52,005,000 and total debts of $207,170,268.

TransCapital Financial Corporation also filed for chapter 11
protection on June 19, 2006 (Bankr. S.D. Fla. Case No, 06-12644)
and is represented by Paul J. Battista, Esq., at Genovese Joblove
& Battista, P.A.


ARMSTRONG WORLD: Asbestos Trust Discloses Acquired Common Shares
----------------------------------------------------------------
The Asbestos Personal Injury Settlement Trust established pursuant
to Armstrong World Industries Inc.'s Fourth Amended Plan of
Reorganization disclosed in a Form 3 filing with the Securities
and Exchange Commission that it has acquired 36,981,480 shares of
the Debtor's common stock.

The Trust owns about 10% of the securities of Reorganized AWI,
according to the filing.  The shares were issued by the Debtor on
Oct. 2, 2006.

Harry Huge is the Managing Trustee of the Asbestos Trust, which is
intended to settle all present and future asbestos-related
personal injury claims asserted against the Debtor.

The Trust will also receive $738 million in cash from the Debtor,
representing the portion of cash distributions to which the Trust
is entitled under the Plan.

Additionally, 14 directors and officers of the Debtor disclosed in
separate Form 3 filings from Oct. 11 to 16, 2006, that they do not
currently own any shares of the Debtor's Common Stock:

     Officer                 Designation
     --------                -----------
     James J. Gaffney        Director
     Robert C. Garland       Director
     Judith R. Haberkorn     Director
     Russell F. Peppet       Director
     Arthur J. Pergament     Director
     John Joseph Roberts     Director
     Alexander M. Sanders    Director
     Nicholas Grasberger     Senior VP & CFO
     Michael D. Lockhart     Chairman of Board, President & CEO
     Donald A. McCunniff     Senior VP - Human Resources
     Frank J. Ready          President & CEO, North America
     John N. Rigas           Senior VP, Secretary & Gen. Counsel
     William C. Rodruan      Vice President & Controller
     Stephen J. Senkowski    Executive VP, CEO & President of
                                Armstrong Building Products

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 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 Company and its
affiliates 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.

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.  The Company's "Fourth Amended Plan of
Reorganization, as Modified," has become effective and AWI has
emerged from Chapter 11.  (Armstrong Bankruptcy News, Issue No.
103; Bankruptcy Creditors' Service,Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 9, 2006
Standard & Poor's Ratings Services raised its corporate credit
rating on Armstrong World Industries Inc. to 'BB' from 'D',
following the Company's emergence from bankruptcy on Oct. 2, 2006.
The outlook is stable.


BERKELEY STREET: Moody's Cuts Rating on Senior Notes to Caa2
------------------------------------------------------------
Moody's Investors Service has downgraded the notes issued by
Berkeley Street CDO, Ltd.:

   * $34,800,000 million Class A-2 Fixed Rate Senior Secured
     Notes due 2013

     -- Previous Rating: A1
     -- Current Rating: A3

   * $37,900,000 million Class B Fixed Rate Senior Secured Notes
     due 2013

     -- Previous Rating: Ba2
     -- Current Rating: B1

   * $8,600,000 Class C Fixed Rate Senior Secured Notes due 2013

     -- Previous Rating: B3
     -- Current Rating: Caa2

Moody's noted that the transaction, which closed in March 2001,
has experienced deterioration in the quality of the collateral
pool.  The transaction is failing its Weighted Average Rating Test
(3282 vs. the covenanted level of 2720) and its Minimum Weighted
Average Fixed Coupon Test (8.77% vs. the covenanted level of
9.6%).  It also has 18.4% of assets that have a Moody's rating of
Caa1 or below, which fails the covenanted level of 7%, and 19.3%
of the collateral obligations are subordinated bonds.


BEST MANUFACTURING: Taps Glass & Associates as Crisis Manager
-------------------------------------------------------------
Best Manufacturing Group LLC and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of New York for permission
to employ Glass & Associates Inc., as their crisis manager
pursuant to Section 363(b) and 105(a) of the Bankruptcy Code.

Glass & Associates will:

    a) assist the Debtors' management with the bankruptcy
       process, including facilitating their communications with
       parties in interest, assisting with creditor questions
       and requests for information, and providing guidance as
       to compliance with financial and other reporting
       requirements;

    b) assist the Debtors in complying with the reporting
       requirements of the Office of the United States Trustee,
       Bankruptcy Code, Federal Rules of Bankruptcy Procedure,
       and Local Rules of Bankruptcy Procedure, including the
       preparation of statements of financial affairs, schedules
       and monthly operating reports;

    c) assist with the analyses and reconciliation of claims
       against the Debtors and bankruptcy avoidance actions;

    d) participate in court hearings and, if necessary, provide
       expert advice and expert testimony relating to financial
       and operational matters and on work performed by Glass;

    e) manage the Debtors' daily liquidity and prepare cash flow
       and liquidity projections, prepare updated financial
       forecasts and prepare feasibility analyses in connection
       with the Debtors' restructuring efforts;

    f) provide ongoing assessment of the Debtors' operations,
       oversee and monitor the progress of all operational
       restructuring initiatives and activities, analyze and
       evaluate additional restructuring initiatives as Glass
       further quantifies the Debtors' customer, product, and
       business line profitability and its overhead structure;

    g) assist the Debtors' management team in reacting to
       unforeseen negative financial events in their business by
       developing alternative restructuring strategies;

    h) identify assets and business units that could be sold and
       assist the Debtors' professionals, including investment
       bankers, in processing any sales;

    i) assist the Debtors with the appropriate analyses in
       support and preparation of a plan of reorganization;

    j) provide valuation services that may be required in
       developing a plan of reorganization, or as otherwise may
       be required;

    k) assist the Debtors' investment banker in arranging new
       financing that may be required to support the Debtors'
       restructuring effort or required to support their plan of
       reorganization;
   
    l) assist the Debtors in negotiating with their creditor
       constituencies, including negotiations relating to the
       Debtors' plan of reorganization;

    m) perform a liquidation analysis of the Debtors for purposes
       of a plan of reorganization; and

    n) perform other tasks as are appropriate and requested
       by the Debtors'.

Pursuant to their employment agreement, Glass & Associates
designates Dalton Edgecomb to serve as chief restructuring officer
and Dion Oglesby as interim chief financial officer for the
Debtors.

The Debtors tell the Court that it paid the firm $380,000 for
services rendered before the petition date.

Mr. Edgecomb discloses that the firm bills $120,000 bi-weekly,
plus reimbursable expenses.

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

Mr. Edgecomb can be reached at:
      
     Dalton Edgecomb
     623 Fifth Avenue
     15th Floor
     New York, New York 10022
     Tel: (212) 223-2002
     Fax: (212) 223-5477
     http://www.glass-consulting.com/

Headquartered in Jersey City, New Jersey, Best Manufacturing Group
LLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture  
and distribute textiles, career apparel and other products for the
hospitality, healthcare and textile rental industries.  The
Company and four of its subsidiaries filed for chapter 11
protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415).  
Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman &
Leonard, P.A., represent the Debtors.  Scott L. Hazan, Esq., at
Otterbourg, Steindler, Houston & Rosen, and Morris S. Bauer, Esq.
and Stephen B. Ravin, Esq., at Ravin Greenberg PC, represent the
Official Committee of Unsecured Creditors.  When the Debtors filed
for protection from their creditors, they estimated assets and
debts of more than $100 million.


BETTY'S HOMES: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Betty's Homes, Inc.
        2844 Bella Vista Way
        Bella Vista, AR 72714

Bankruptcy Case No.: 06-72389

Type of Business: The Debtor builds affordable starter, retirement
                  and semi-custom homes.
                  See http://www.bettyshomesinc.com/

Chapter 11 Petition Date: October 20, 2006

Court: Western District of Arkansas (Fayetteville)

Judge: Richard D. Taylor

Debtor's Counsel: Stanley V. Bond, Esq.
                  P.O. Box 1893
                  Fayetteville, AR 72701-1893
                  Tel: (479) 444-0255
                  Fax: (479) 444-7141

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

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


BOSTON SCIENTIFIC: Earns $76 Million for Quarter Ended Sept. 30
---------------------------------------------------------------
Boston Scientific Corporation disclosed financial results for the
third quarter ended Sept. 30, 2006.

Net sales for the third quarter of 2006 were $2 billion as
compared to $1.5 billion for the third quarter of 2005, an
increase of 34%.  The increase was primarily attributable to the
inclusion of $491 million of net sales from the Company's cardiac
rhythm management and cardiac surgery businesses.

The Company's reported net income for the third quarter of 2006
was $76 million, which included after tax charges of $77 million,
consisting primarily of expenses resulting from purchase
accounting and other charges related to the Guidant acquisition.

Reported net loss for the third quarter of 2005 was $269 million,
which included after tax charges of $616 million, consisting
primarily of a settlement agreement with Medinol Ltd.

Operating cash flow for the third quarter of 2006 approximated
$480 million.  Adjusted net income for the quarter, which excludes
net charges and amortization and stock compensation expense, was
$291 million, versus an adjusted net income for the third quarter
of 2005 of $379 million.

Worldwide sales of TAXUS(R) paclitaxel-eluting coronary stent
systems were $572 million for the third quarter of 2006 as
compared to $601 million for the third quarter of 2005.  U.S.
sales of TAXUS coronary stent systems were $384 million for the
third quarter of 2006 as compared to $404 million for the third
quarter of 2005.

Worldwide CRM sales were $446 million, which included $315 million
of worldwide implantable cardioverter defibrillator sales and
$131 million of worldwide pacemaker sales.  U.S. CRM sales were
$296 million, including $221 million of U.S. ICD sales and
$75 million of U.S. pacemaker sales.

"Despite the challenges in Q3, we were able to achieve results
near the high end of our previously announced preliminary sales
and earnings ranges," Jim Tobin, president and chief executive
officer, said.  "We look forward to providing an update on our
business and our growth opportunities at our November 6 analyst
meeting."

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--  
develops, manufactures and markets medical devices used in a broad
range of interventional medical specialties.

                           *     *     *     

Moody's Investor Services, effective April 21, 2006, lowered the
credit ratings of Boston Scientific following the close of the
acquisition of Guidant Corporation.  Affected ratings include:
senior notes to Baa3 from Baa1; short-term rating to Prime-3 from
Prime-2; senior shelf to (P)Baa3 from (P)Baa1; subordinated shelf
to (P)Ba1 from (P)Baa2; and preferred stock shelf to (P)Ba2 from
(P)Baa3.


BRIDGEVIEW VILLAS: Case Summary & Eight Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Bridgeview Villas II L.P.
        2695 Divot Place
        Columbus, OH 43211

Bankruptcy Case No.: 06-56000

Chapter 11 Petition Date: October 20, 2006

Court: Southern District of Ohio (Columbus)

Judge: John E. Hoffman

Debtor's Counsel: James E. Nobile, Esq.
                  Nobile, Needleman & Thompson, LLC
                  4511 Cemetery Road, Suite B
                  Hilliard, OH 43026
                  Tel: (614) 529-8600
                  Fax: (614) 529-8656

Estimated Assets: Less than $10,000

Estimated Debts:  $1 Million to $100 Million

Debtor's Eight Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
Draga Sikonovski                         $1,035,000
39039 Juniper Tree Road
Palmdale, CA 73551

Kristier Realty, LLC                       $150,000
c/o Plunkett Cooney, P.C.
300 East Broad Street, Suite 590
Columbus, OH 43215

David & Irma Rivera                        $125,000
c/o Hrabcak & Company LPA
63 East Wilson Bridge Road
Worthington, OH 43085

Performance Paving, Inc.                    $51,000
1040 Brentnell Avenue
Columbus, OH 43219

American Electric Power                     $10,384
P.O. Box 24401
Canton, OH 44701-4401

City of Columbus                             $7,418

Sears Commercial One                         $4,468

Martin Managements Services, Inc.            $2,500


CABLEVISION SYSTEM: Board Committee Taps Lehman and Morgan Stanley
------------------------------------------------------------------
The Special Transaction Committee of the Board of Directors of
Cablevision Systems Corporation, has retained Lehman Brothers Inc.
and Morgan Stanley as financial advisors.

The Special Transaction Committee was formed to evaluate and act
on the proposal of the Dolan Family Group to acquire the
outstanding publicly held shares of common stock of the Company.  
Lehman Brothers and Morgan Stanley will assist Company in
considering the proposal.

As reported in the Troubled Company Reporter on Oct. 13, 2006 in a
letter to the board of directors of the Company, Charles F. Dolan
and James L. Dolan said that the Dolan Family Group is offering to
acquire, at $27 per share, all outstanding shares of the Company's
common stock.

The law firm Willkie Farr & Gallagher LLP, was also retained by
the Special Transaction Committee as its legal advisor.

Headquartered in Bethpage, New York, Cablevision Systems
Corporation, is a domestic cable multiple system operator serving
more than 3 million subscribers in and around the metropolitan New
York area.

Rainbow National Services LLC, headquartered in Jericho, New York,
supplies television programming to cable television and direct
broadcast service providers throughout the United States.

                         *     *     *

As reported in the Troubled Company Reporter on Oct 11, 2006
Moody's Investors Service placed all ratings for Cablevision
Systems Corporation, CSC Holdings, Inc., a wholly owned subsidiary
of CVC, and Rainbow National Services LLC on review for downgrade
following the Dolan family's announcement of a proposal to acquire
Cablevision.  The ratings on Cablevision Systems Corporation that
are under review are: Corporate Family Rating, Placed on Review
for Possible Downgrade, currently B1; Probability of Default
Rating, Placed on Review for Possible Downgrade, currently B1; and
Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Downgrade, currently B3,LGD6, 93%.


CAP CANA: Moody's Assigns B3 Rating to $200MM Senior Notes
----------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Cap Cana, S.A.'s
proposed $200 million senior secured notes due 2013.  Moody's also
assigned a B3 corporate family rating to Cap Cana.  This is the
first time Moody's has rated Cap Cana.  The rating outlook is
stable.

Cap Cana is a corporation that was organized under the laws of the
Dominican Republic in May, 2001.  Its principal activity is the
development, construction, operation and administration of a
tourist and leisure resort community project known as Cap Cana,
located in the Municipality of Higuey, Province of La Altagracia,
Section Jina Jaragua, Place, Juanillo area of the Dominican
Republic.

The notes will be secured by a first-priority lien on the
company's property, and have a liquidation value of not less than
200% of the principal amounts of the notes and certain
receivables.  An escrow will be created by the trustee to manage
the receivables from clients who are buying property in Cap Cana.
These receivables are to be maintained at 125% of the issue
amount.  The notes are senior secured obligations of Cap Cana and
will rank equally in right of payment with all of the company's
existing and futures senior secured indebtedness.  The notes
contain certain covenants which include restricted payments and
incurrence of debt.

Moody's B3 senior secured rating reflects Cap Cana's mix of real
estate products, and the size, location and amenities of the
development, which will differentiate it from other resorts in
Dominican Republic when complete.  The land is 100% owned by the
company and Cap Cana has displayed good operating margins with
diversified revenue sources coverage and low leverage.  The
company has a seasoned management team with decades of collective
real estate development and construction experience.  Moreover,
its sales and marketing team has had experience in international
sales of luxury properties.  The ratings also incorporate the
structural collateral of the transaction.

Cap Cana's primary credit challenges are related to operating in a
narrow market, as well as uncertainty regarding the demand for its
product.  An appraisal of the company and industry by CBRE
indicates demand for homes and related real estate may be high,
but the long-term robustness of the Dominican Republic property
market, and of Cap Cana's resort, are not yet proven. Furthermore,
Cap Cana bears 100% of the risk of finding potential buyers, and
not all units in construction are pre-sold.  In Moody's opinion,
the success of the company's project is intrinsically tied to the
current and future economic and political conditions in the
Dominican Republic.  The Dominican Republic's foreign- and local-
currency bonds are rated B3 by Moody's, and are under review for
upgrade.

The stable rating outlook reflects Moody's expectation that Cap
Cana will maintain a conservative approach to leverage and stable
earnings, while meeting or exceeding its sales projections.

Positive ratings movement would reflect the success of the
maintenance of total leverage at current levels (pro forma for the
bonds) and the demand for Cap Cana's product outpacing budgeted
sales and revenues by 130%.  Negative ratings movement would
reflect economic difficulties in the Dominican Republic, a natural
disaster or other event that delays or damages the development, or
if sales demand for Cap Cana's housing and related property is
less than anticipated.

These ratings were assigned with a stable outlook:

   * Cap Cana, S. A.

     -- $200 million senior secured notes at B3; and,
     -- corporate family rating at B3.

Cap Cana, a privately owned firm, is being developed as a multi-
use luxury resort in the Caribbean with world-class beaches,
championship golf courses, yachting facilities and similar leisure
amenities.  The property consists of over 119.9 square kilometers
of land, including an eight kilometer coastline and 3.5 kilometers
of one of the most pristine beaches in the region. Cap Cana is
located on the easternmost tip of the Dominican Republic, and is
easily accessible from many parts of the world, as Punta Cana
International Airport, only a ten-minute drive from the property,
receives nonstop flights from large metropolitan centers in
Europe, Canada and the USA.  

When fully developed, Cap Cana is expected to have

   -- five championship golf courses where three of which will be
      Nicklaus Signature courses;

   -- one of the largest inland marinas in the Caribbean;

   -- several luxury hotels;

   -- over 10,000 housing units, including estate homes, villas
      and condominiums;

   -- numerous sports facilities, including private golf, beach
      and yacht clubs; and,

   -- a variety of high-end stores, restaurants, spas and
      entertainment complexes.

Plans also include the development of a large ecological preserve.


CAP CANA: Fitch Puts Preliminary B Rating on Senior Secured Notes
-----------------------------------------------------------------
Fitch Ratings has assigned a preliminary 'B' rating to Cap Cana,
S.A.'s senior secured notes.  Cap Cana is domiciled in the
Dominican Republic.  Cap Cana's principal activity is the
development, construction, operation and administration of a
tourist and leisure resort community project of the same name.

Cap Cana is a multi-use luxury resort located along five miles of
coastline in the southeastern region of the country.

The $200 million in proceeds from the offering will be used to
complete the initial phase of construction as well as repay a
significant amount of Cap Cana's existing debt.  The notes will be
secured by a first priority mortgage over unencumbered real estate
property, as well as receivables related to the sale of property.

The multi-use resort development consists of three main
components:

    -- Beach;
    -- Golf; and,
    -- Marina.

When fully developed, the project will be anchored by five
championship golf courses (of which three are Jack Nicklaus
signature courses), the largest inland marina in the Caribbean,
several luxury hotels, more than 10,000 housing units, numerous
sports facilities, along with high-end stores, restaurants, spas,
and entertainment complexes.  Cap Cana began development in 2002
and to date has invested approximately $220 million in
infrastructure and other improvements, which include 17 miles of
paved roads, water reservoirs and treatment facilities, power
generation capacity (five megawatts), a private beach club, the
first Jack Nicklaus Signature Golf course and substantial
completion of the marina and numerous residential units therein.
The first condos were delivered in October 2006.

The structure backing this issuance adds significant investor
protections in two forms:

There are cash flow controls that will reduce project execution
risks.  Bond proceeds sized to the remaining construction costs
will be held in escrow and only released upon the achievement of
construction milestones.

A material security package backs the debt in the event of a
corporate default.  The collateral package will exist in two
forms:

    -- First mortgage liens on land equal to a minimum of 200% of
       the outstanding debt (Under certain limited circumstances,
       liens equal to a much greater amount are required); and

    -- Receivables arising from the sale of developed properties
       will equal 125% of outstanding debt.

Cap Cana's business model is to sell units prior to construction.
Under the terms of this transaction, certain sales contracts will
be pledged as collateral to back the notes.  These receivables are
subject to construction completion risks, but once completed, the
receivables will act much like a mortgage.  Prospective obligors
are expected to be high net worth individuals.

The major risks for Cap Cana are two-fold. First, sales of future
units must be realized in order to collateralize the transaction
and generate additional working capital for the project.  Second,
construction on individual units must be completed.  Fitch
believes these risks to be consistent with the expected rating.  
Independent engineer reports were used to facilitate modeling
assumptions, which incorporated down side analysis regarding real
estate valuations as well as construction costs.

Fitch currently has a 'B' Long Term Issuer Default Rating (IDR)
for the Dominican Republic with a Positive Outlook.


CHEMTURA CORP: S&P Affirms BB+ Rating & Revises Outlook to Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Middlebury, Connecticut-based Chemtura Corp. to stable from
positive and affirmed the existing 'BB+' corporate credit and
senior unsecured debt ratings.

The outlook revision reflects diminished expectations for the
strengthening of key cash flow protection measures because of poor
profitability in certain businesses and less-than-expected debt
reduction.  Chemtura's progress toward the improvement of the
balance sheet has been hampered in part by payments for antitrust
litigation, restructuring activities, and debt retirement
premiums.

"Still, management's ongoing efforts to address problem operations
and commitment to strengthening the capital structure enhance
prospects that credit quality metrics can improve to the level
appropriate for the current ratings perhaps by the end of 2007,"
said Standard & Poor's credit analyst Wesley E. Chinn.

The ratings on Chemtura incorporate the vulnerability of its
operating results to competitive pricing pressures, raw-material
costs, and cyclical markets; and weak cash flow protection
measures.  These aspects are tempered by a diversified portfolio
of specialty and industrial chemical businesses (generating annual
pro forma revenues of roughly $3.9 billion), which reflects the
July 2005 acquisition of Great Lakes Chemical Corp. for
approximately $1.6 billion in common stock, plus the assumption of
debt.  The transaction resulted in an immediate strengthening of
Chemtura's business mix and cash flow protection measures, because
of the equity-financed acquisition of a much higher-rated company.

Great Lakes Chemical added complementary product lines to
Chemtura's existing plastics additives portfolio as well as
recreational water chemicals (which has a strong market share) and
brominated flame retardants businesses.  Key businesses of the
combined company serve diverse markets and include plastic and
specialty additives, urethane prepolymers, pool and spa chemicals,
crop protection chemicals, brominated flame retardants, and
petroleum additives.  Still, a significant percentage of the sales
base consists of products where profitability is being punished by
markets which are commodity-like and highly competitive.  
Consequently, the company continues to rationalize the number of
customers and products, fine-tune pricing initiatives, and reduce
the cost base in certain product lines.  Management is also
seeking to shed underperforming or noncore businesses.


CLIENTLOGIC CORP: SITEL Buy Plan Prompts S&P's Positive Watch
-------------------------------------------------------------
Standard & Poor's Rating Services placed its 'B' corporate credit
rating on Nashville, Tennessee-based ClientLogic Corp. on
CreditWatch with positive implications.

The CreditWatch listing follows ClientLogic's announcement that it
has made an offer to acquire Omaha, Nebraska-based SITEL Corp. for
approximately $450 million in cash, which has been accepted by
SITEL's board of directors and recommended to the shareholders.  
The transaction price includes the assumption of SITEL's debt.  

S&P estimates the transaction would result in pro forma financial
leverage in the high 4x to low 5x, up from about 3.7x currently,
and believe the transaction will provide the combined company with
increased scale, with revenue estimated to reach $1.7 billion on a
pro forma basis.  It also should provide operational efficiencies,
a more diversified customer base, and significant cost savings,
which could bring leverage below the pro forma level.

On a standalone basis, ClientLogic provides outsourced customer-
care and fulfillment services through its 42 customer contact
centers and five distribution warehouses located across the globe.
Revenues, which reached about $586 million in 2005, were
concentrated on several large companies: The company's top five
clients generated 44% of 2005 revenues.  S&P believes the
acquisition of SITEL -- also involved in outsourced customer
support services -- would triple the revenue, further diversify
the client base, expand service offerings, and increase the
geographic footprint for the combined company.

In completing the CreditWatch review, S&P will meet with
management from ClientLogic to better understand both the
integration risks and opportunities and future growth strategies
to determine the rating.


CNET NETWORKS: Fails to Get Needed Consents from 0.75% Noteholders
------------------------------------------------------------------
CNET Networks, Inc. disclosed the results of its solicitation of
consents of holders of any and all of its $125,000,000 aggregate
principal amount of outstanding 0.75% Convertible Senior Notes due
2024 pursuant to its consent solicitation for the securities,
which expired on Oct. 18, 2006.

CNET Networks did not receive a sufficient number of consents from
holders to satisfy the 70% requisite consent threshold.  
Therefore, CNET Networks will not accept any of the consents
delivered by the holders of the notes, and the indenture related
to the notes will not be amended.

Headquartered in San Francisco, California, CNET Networks, Inc.
(Nasdaq: CNET) -- http://www.cnetnetworks.com/-- is an  
interactive media company that builds brands for people and the
things they are passionate about, such as gaming, music,
entertainment, technology, business, food, and parenting.  The
Company's leading brands include CNET, GameSpot, TV.com, MP3.com,
Webshots, CHOW, ZDNet and TechRepublic.  Founded in 1993, CNET
Networks has a strong presence in the US, Asia and Europe
including Russia, Germany, Switzerland, France and the United
Kingdom.


CNET NETWORKS: S&P Junks Credit Rating Due to Indenture Default
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on CNET
Networks Inc., including lowering the corporate credit rating to
'CCC+' from 'B', and placed the ratings on CreditWatch with
developing implications.

The action was based on the company receiving a notice of
acceleration from the trustee for the holders of $125 million in
0.75% senior convertible notes due 2024 and not having a
sufficient number of consents to waive default from indenture
violation.

Total debt outstanding as of June 30, 2006, was $143.3 million.

San Francisco-based CNET connects buyers and suppliers of
information technology and electronic products through advertiser-
supported online news and product reviews.  More recently, the
company has branched out to automotive and other categories.

The trustee is accelerating the maturity on the convertible notes
because CNET failed to file its quarterly report for the period
ended June 30, 2006, with the SEC.  CNET was unable to file
because a special committee formed by its board of directors is
reviewing stock option practices.  Certain stock options granted
between 1998 and 2001 differ from the recorded measurement dates.  
As a result of the filing delinquency, the company violated
provisions of the indenture that require the report to be filed
with the trustee 15 days after the report is submitted to the SEC.

If the company repays the accelerated maturity of $125 million,
S&P may raise the rating back to the 'B' category.  On the other
hand, if the company does not meet the accelerated maturity, S&P
will likely lower the ratings to 'D'.


COLLINS & AIKMAN: Resolves Tooling Dispute with Huron Mold
----------------------------------------------------------
Wallace M. Handler, mediator for Huron Mold & Tool, Ltd., tells
the U.S. Bankruptcy Court for the Eastern District of Michigan
that Huron and Collins & Aikman Corporation have resolved their
dispute over certain tooling delivered to the Debtor.

As reported in the Troubled Company Reporter on July 28, 2006,
Huron asked the Court to lift the automatic stay to repossess
tooling from Collins & Aikman.  Huron asserted Collins & Aikman
and its debtor-affiliates owe Huron approximately $1.4 million for
the tooling.

The Debtors moved to block Huron's lift-stay request saying Huron
has not established that it has a valid and enforceable first lien
on the Molds.

After extensive negotiations, the parties agree, with the Court's
consent, that the Debtors will pay Huron $350,000 for its claims.

Huron will continue to render services to the Debtors, provided
that it will be duly compensated for the continued services.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in cockpit   
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case
No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis LLP,
represents C&A in its restructuring.  Lazard Freres & Co., LLC,
provides the Debtor with investment banking services.  Michael S.
Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents
the Official Committee of Unsecured Creditors Committee.  When the
Debtors filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total debts.
(Collins & Aikman Bankruptcy News, Issue No. 43; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or   
215/945-7000)


CONTINENTAL AIRLINES: Strong Earnings Prompt S&P's Stable Outlook
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings, including
the 'B' long-term and 'B-3' short-term corporate credit ratings,
on Continental Airlines Inc.  The outlook is revised to stable
from negative.  Houston, Texas-based Continental has about
$17 billion of debt and leases.

"The outlook revision reflects ongoing improvements in earnings
and cash flow, along with strengthened liquidity," said Standard &
Poor's credit analyst Philip Baggaley.  "The airline reported a
$309 million net profit before special items for the first three
quarters of 2006, reversing a loss of the same period last year,
and had $2.5 billion of unrestricted cash at Sept. 30."  
Continental, like other large U.S. airlines, has benefited from
strong revenues and ongoing cost reductions, which has more than
offset much higher fuel prices.  Year-over-year revenue gains are
slowing, but fuel prices have fallen recently from summer peaks,
and the airline's fourth quarter should be much better than the
final quarter of 2005, which was affected by a fuel price spike in
the wake of hurricane damage to Gulf Coast oil refineries.

The 'B' corporate credit rating reflects Continental's
participation in the high-risk airline industry and a heavy debt
and lease burden.  These factors outweigh better-than-average
operating performance among its peer large U.S. hub-and-spoke
airlines.  Continental, the fourth-largest U.S. airline, serves
markets mainly in the southern and eastern U.S. from hubs at
Houston; Newark, N.J.; and Cleveland, Ohio.  International routes
serve the central Pacific, selected Asian destinations, Latin
America, and Europe.  Continental's route system is more balanced
among these various markets than those of other large U.S.
airlines, reducing risk somewhat.

Continental, like other U.S. airlines, faces a challenging
industry environment characterized by fare competition in the
domestic market, high and volatile fuel prices, and an ongoing
risk from terrorism.  Continental has a substantial debt and lease
burden, given an extensive modernization and expansion of its
fleet since the mid-1990s and losses from 2001 through 2005.

Debt and leases, net of unrestricted cash, are greater, relative
to the company's size (net debt to revenues of about 120%), than
those of most other "legacy" airlines.  Recent pension reform
legislation will allow Continental to stretch out amortization of
its $1.2 billion pension deficit over a longer period, easing cash
requirements.  The debt maturity schedule has likewise been
smoothed out through refinancings; 2007 debt maturities are now
$556 million, versus over $900 million at the start of the year.  
Although the fleet modernization and expansion has added debt, it
has also generated savings in fuel efficiency and maintenance and
reduced future replacement needs.  Accordingly, Continental faces
much less pressure to modernize its fleet than do other legacy
carriers.

Improved earnings and cash flow should support an overall credit
profile consistent with the rating over the intermediate term. An
outlook revision to positive or a return to a negative outlook are
not anticipated over the near term.


CONTINENTAL AIRLINES: Good Performance Cues Fitch to Lift Ratings
-----------------------------------------------------------------
Fitch Ratings has upgraded the debt ratings of Continental
Airlines, Inc. as:

    -- Issuer Default Rating (IDR) to 'B-' from 'CCC';
    -- Senior Unsecured Debt to 'CCC/RR6' from 'CC/RR6'.

Continental's Rating Outlook is Stable.

The upgrade reflects Continental's improved operating results
during 2006, a brightening free cash flow generation outlook for
2007 and a balance sheet that has grown stronger this year through
debt reduction and steadily improving liquidity.  Continental
ended the third quarter with $2.5 billion of unrestricted cash and
short-term investments, compared with $2 billion at year-end 2005.

Taking into account the airline's strengthened cash position and
operating cash flow, Fitch believes that the risk of an event-
driven liquidity crisis - linked to future air travel demand
and/or fuel price shocks - has been reduced dramatically.  Despite
heavy fixed cash obligations related to scheduled debt principal
payments and required pension contributions, the airline is in a
position to fund 2007 debt and pension obligations without
pressuring its cash position significantly over the next several
quarters.

While the risk of significant liquidity pressure has diminished,
the 'B-' IDR captures the high degree of financial risk linked to
Continental's very heavy debt and lease loads, substantial near-
term cash obligations, as well as the U.S. airline industry's
unique vulnerability to external shocks.  Fitch believes that
Continental's balance sheet can now absorb air travel demand
and/or fuel price shocks more effectively than at any time since
the onset of the industry financial crisis in 2001.  Although the
carrier remains committed to average annual available seat mile
growth rates of 5 to 7% annually over the next several years,
management appears focused on the need to reduce debt while
maintaining a strong cash position.

Much stronger operating results in the second and third quarters
reflected the impact of an excellent demand and pricing
environment during the peak travel period, despite the fact that
surging energy prices continue to pressure Continental's cost per
available seat mile position.  Improving yields, linked to fare
increases and a better revenue mix, have been driven by
constrained industry ASM growth this year.  Continental and other
U.S. airlines have indicated that increased security measures
related to the Aug.  10 London bomb plot had a material impact on
bookings in August and September - particularly in trans-Atlantic
markets.  However, any related softening in demand does not appear
to be carrying over into the fourth quarter.  For the third
quarter, Continental reported a 7.4% increase in revenue per ASM
(RASM) on a 9.1% increase in consolidated capacity.  As in
previous quarters, most of the RASM increase was driven by
improvements in yields.  Despite $155 million of fuel cost
pressure in the third quarter, operating income improved by
$83 million year-over-year to $192 million.

Continental's growth in international markets, particularly
secondary European cities served from its Newark hub, has been
rapid again in 2006.  Despite Delta's reinforced commitment to
expanded international service, and factoring in the impact of the
Aug. 10 security measures, Continental's trans-Atlantic RASM
increased by 1.4% in the third quarter on a 15% increase in seat-
mile capacity.  Latin American unit revenue improved by 10% on a
13% increase in ASMs.  The sensitivity of fares in these
international markets to changes in capacity will be a critical
factor in determining whether Continental's strong revenue
performance can be extended into 2007.

High jet fuel costs continue to represent a significant drag on
Continental's earnings and cash flow.  The 20% pull-back in crude
oil and refined product prices over the past two months provides
additional support for margin improvement moving into 2007 - even
if RASM growth rates moderate next year.  Continental now
forecasts an average jet fuel price of $2.05 per gallon for the
fourth quarter, but current jet fuel spot prices are now at
approximately $1.80 per gallon.  Continental's fuel hedging
strategy is based on the idea that forward hedge positions should
generally correlate with the level of advance bookings for future
periods.

The passage of pension funding reform legislation by Congress in
August represented an important step forward for Continental in
managing the level of future cash contributions to its under-
funded defined benefit pension plans.  Special provisions for
airlines in the bill will allow Continental to meet its under-
funded liability over a ten-year period. This removes the risk of
sharply higher required cash contributions under the old funding
rules.  Although Continental faces an additional pension funding
burden relative to United and US Airways (both of which have
terminated their defined benefit plans through Chapter 11), the
new funding rules should allow Continental to keep required cash
funding levels at or near accrued pension expense levels in 2007
and 2008. The carrier's under-funded pension liability totaled
$1.2 billion on a projected benefit obligation (PBO) basis at YE
2005. Continental has funded its plans aggressively in 2006, with
total cash contributions reaching $246 million year to date.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the event
of a default.


COREL CORP: Reports $5.5 Million Net Income in Third Quarter
------------------------------------------------------------
Corel Corporation reported financial results for its third quarter
ended Aug. 31, 2006.  Revenues in the third quarter of fiscal 2006
were $41.3 million, an increase of 7% over revenues of $38.5
million in the third quarter of fiscal 2005.  GAAP net income in
the third quarter of fiscal 2006 was $5.5 million.  This compares
to a GAAP net loss of $3.0 million in the third quarter of fiscal
2005.

Non-GAAP adjusted net income for the third quarter of fiscal 2006
was $9.2 million, an increase of 88% compared to non-GAAP adjusted
net income for the third quarter of fiscal 2005 of $4.9 million.  
Non-GAAP adjusted EBITDA in the third quarter of fiscal 2006 was
$12.4 million, a 16% increase compared to $10.7 million in the
third quarter of fiscal 2005.  A reconciliation of GAAP net income
to non-GAAP adjusted net income and non-GAAP adjusted EBITDA is
provided in the notes to the financial statements included in this
press release.

"Corel continued to execute against all aspects of our strategy in
the third quarter," said David Dobson, CEO of Corel Corporation.  
"Our announced acquisition of InterVideo and recent launches of
Snapfire and Paint Shop Pro Photo XI show that we are focused on
delivering the products and value that customers and partners
demand.  We also showed our discipline around driving profits as
earnings growth outpaced revenue growth.  With strong revenue
performance, new global partnerships, and increasing traction in
developing and emerging markets, Corel is successfully executing
its strategy to deliver long-term, shareholder value."

Headquartered in Ottawa, Ontario, Corel Corporation (NASDAQ:CREL)
(TSX:CRE) -- http://www.corel.com/-- is a packaged software   
company with an estimated installed base of over 40 million users.  
The Company provides productivity, graphics and digital imaging
software.  Its products are sold in over 75 countries through a
scalable distribution platform comprised of original equipment
manufacturers, Corel's international websites, and a global
network of resellers and retailers.  The Company's product
portfolio features CorelDRAW(R) Graphics Suite, Corel(R)
WordPerfect(R) Office, WinZip(R), Corel(R) Paint Shop(R) Pro, and
Corel Painter(TM).

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 9, 2006,
in connection with Moody's Investors Service's implementation of
its new Probability-of-Default and Loss-Given-Default rating
methodology, the rating agency confirmed its Caa1 Corporate Family
Rating for Corel Corporation.


CORUS GROUP: Confirms Tata Steel's $10 Billion Takeover Proposal
----------------------------------------------------------------
Corus Group plc confirmed that Tata Steel has made an indicative
non binding offer to acquire 100% equity in the company through a
recommendatory offer route at 455 pence per share in cash
amounting to an enterprise value of approximately $10 billion.

Discussions on the takeover proposal are taking place between the
parties.

Corus said there is no certainty that a final offer would be made
and further announcements will be made as appropriate.  

                         About Tata Steel

Based in Mumbai, India, Tata Steel -- http://www.tatasteel.com/--  
engages in steelmaking, one of industrial conglomerate Tata
Group's two largest operations.  Tata Group also runs a vehicle
manufacturing company, Tata Engineering.

                         About Corus Group

Corus Group plc, fka British Steel, was formed when the UK
privatized its major steelworks in 1988.  It then changed its name
to Corus Group after acquiring most of Dutch rival Koninklijke
Hoogovens.  Corus makes coated and uncoated strip products,
sections and plates, wire rod, engineering steels, and semi-
finished carbon steel products.  It also manufactures primary
aluminum products. Customers include companies in the automotive,
construction, engineering, and household-product manufacturing
industries.

                          *     *     *

In May 2006, Moody's Investors Service upgraded Corus Group plc's
corporate family rating to Ba2.  Moody's also upgraded its ratings
on the company's senior unsecured and supported unsecured
obligations to B1 and senior secured bank facility to Ba1.

In March 2006, Standard & Poor's Ratings Services placed its 'BB-'
long-term corporate credit rating for Corus Group on CreditWatch.

At the same time, Fitch Ratings changed Corus Group's outlook
to Positive from Stable and affirmed its Issuer Default Rating at
BB- following the company's announcement of its 2005 results and
plan to dispose its aluminum business for EUR826 million.


COUDERT BROTHERS: Meeting of Creditors Scheduled on October 31
--------------------------------------------------------------
The U.S. Trustee for Region 2 will convene a meeting of Coudert
Brothers LLP's creditors at 2:30 p.m., on Oct. 31, 2006, at the
Office of the United States Trustee, 80 Broad Street, Second
Floor, in New York City.

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 officer of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

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).  John E. Jureller, Jr., Esq., and
Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor in its restructuring efforts.  In its schedules of
assets and debts, Coudert listed total assets of $29,968,033 and
total debts of $18,261,380.  The Debtor's exclusive period to file
a chapter 11 plan expires on Jan. 20, 2007.


COUDERT BROTHERS: Court Approves Stein & Lubin as Special Counsel
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
allowed Coudert Brothers LLP to employ Stein & Lubin LLP as its
special counsel, nunc pro tunc to Sept. 22, 2006.

Stein & Lubin will represent the Debtor in connection with several
pending action and accounts receivable matters in California:

   (a) The Cannery v. Coudert San Francisco Superior Court.  Case
       No. CGC 06-455031;

   (b) EOP v. Coudert for San Francisco Superior Court, One
       Market.  Case No. CUD 05616412;

   (c) EOP-Palo Alto Square, L.L.C v. Coudert for Santa Clara
       County Superior Court for the Palo Alto lease.  Case No.
       106 CV057796;

   (d) SVC West v. Coudert for San Francisco Superior Court.  Case
       No. CGC 06-449578;

   (e) Hunter Arbitration Santa Clara Bar Association.  File No.
       7369;

   (f) Guess Arbitration Los Angeles Bar Association.  Case No.
       M-152-06-MM; and

   (g) Gottlieb v. Hicks.  U.S. District Court, Central Division,
       Western District Case No. 2:04-CV-07318-GPS (SS).

Dennis D. Miller, Esq., discloses that Stein & Lubin is the
Debtor's prepetition creditor amounting to $315,934.  The firm has
a security interest for its outstanding fees under California in
any proceeds of the Hunter Arbitration, Guess Arbitration, SVC
Case and Granada Hospitals fee application if any proceeds are
receive.

Mr. Miller adds that the firm has a security interest in certain
proceeds of a transaction between the Debtor and Orrick,
Herrington & Sutcliffe LLP, that is payable in January 2007, as
collateral for its outstanding fees.

The firm's professionals bill:

          Designation            Hourly Rate
          -----------            -----------
          Partners               $350 - $395
          Associates                 $235

Mr. Miller assures the Court that the firm does not hold nor
represent any interest materially adverse to the Debtor's estate.

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).  John E. Jureller, Jr., Esq., and
Tracy L. Klestadt, Esq., at Klestadt & Winters, LLP, represents
the Debtor in its restructuring efforts.  In its schedules of
assets and debts, Coudert listed total assets of $29,968,033 and
total debts of $18,261,380.  The Debtor's exclusive period to file
a chapter 11 plan expires on Jan. 20, 2007.


CREDIT SUISSE: Lowers Rating on Class B-1 Trust Transaction to BB+
------------------------------------------------------------------
Fitch Ratings has taken rating actions on these Credit Suisse
First Boston home equity asset trust transactions:

CSFB Home Equity Asset Trust, series 2002-1

    -- Class B-1 rated 'A-'is placed on Rating Watch Negative.

CSFB Home Equity Asset Trust, series 2002-3

    -- Class B-1 rated 'BBB+' is placed on Rating Watch Negative.

CSFB Home Equity Asset Trust, series 2002-4

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class B-1 downgraded to 'BBB-' from 'BBB+'.

CSFB Home Equity Asset Trust, series 2002-5

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class B-1 downgraded to 'BB+' from 'BBB+'.

CSFB Home Equity Asset Trust, series 2003-1

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A+';
    -- Class M-3 affirmed at 'A';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BB' from 'BBB';
    -- Class B-3 downgraded to 'B+' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-2

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A+';
    -- Class M-3 affirmed at 'A';
    -- Class B-1 downgraded to 'BB+' from 'BBB+';
    -- Class B-2 downgraded to 'B' from 'BBB'.

CSFB Home Equity Asset Trust, series 2003-3

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A+';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BBB-' from 'BBB';
    -- Class B-3 downgraded to 'BB+' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-4

    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BB+' from 'BBB';
    -- Class B-3 downgraded to 'BB' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-5

    -- Class A affirmed at 'AAA';
    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BB' from 'BBB';
    -- Class B-3 downgraded to 'B+' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-6

    -- Class A affirmed at 'AAA';
    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BBB-' from 'BBB';
    -- Class B-3 downgraded to 'BB-' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-7

    -- Class A affirmed at 'AAA';
    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BB+' from 'BBB';
    -- Class B-3 downgraded to 'B+' from 'BBB-'.

CSFB Home Equity Asset Trust, series 2003-8

    -- Class A affirmed at 'AAA';
    -- Class M-1 affirmed at 'AA';
    -- Class M-2 affirmed at 'A';
    -- Class M-3 affirmed at 'A-';
    -- Class B-1 affirmed at 'BBB+';
    -- Class B-2 downgraded to 'BBB-' from 'BBB';
    -- Class B-3 downgraded to 'BB-' from 'BBB-'.

The affirmations affect approximately $448 million in outstanding
certificates and reflect adequate relationships of credit
enhancement to future loss expectations.  The negative rating
actions, affecting $139 million in outstanding certificates are
due to deterioration in the relationship between monthly losses
and excess spread which is generally causing a decline in
collateralization.  Rapid prepayments and the significant increase
in LIBOR have resulted in less subordination and less excess
spread than initially anticipated at this point in the
transactions' seasoning.  Additionally, although cumulative losses
as a percentage of the original pool balances have generally been
within Fitch's initial expectations, the rapid prepayments have
resulted in adverse selection causing the expected loss on the
remaining pool balances to generally be higher than initially
anticipated at this point in the transactions' seasoning.

As of the September 2006 distribution date, the above transactions
have pool factors ranging from 8% to 21%.  The pools are seasoned
from a range of 32 to 50 months.  The percentage of loans over 60
days delinquent ranges from 15% to 34.3%.  The cumulative loss as
a percentage of the initial pool balance ranges from 0.53% to
2.08%.

The collateral of the above transactions consists of first and
second lien fixed-rate and adjustable-rate subprime mortgage
loans.  The mortgage loans are being serviced by various entities
which include, Ocwen Financial Corp. (rated 'RPS2' by Fitch),
Wells Fargo Home Mortgage, Inc. ('RPS1'), Chase Home Finance, LLC
('RPS1) and Select Portfolio Servicing, Inc. ('RPS2').  The
depositor is Credit Suisse First Boston.  All of the mortgage
loans were purchased by an affiliate of the depositor from various
sellers in secondary market transactions.


DALRADA FINANCIAL: Pohl McNabola Raises Going Concern Doubt
-----------------------------------------------------------
Pohl, McNabola, Berg & Company, LLP, expressed substantial doubt
about Dalrada Financial Corporation's ability to continue as a
going concern after auditing the company's financial statements
for the fiscal year ended June 30, 2006.  The auditing firm
pointed to the company's loss from continuing operations of
$4,739,000 in fiscal 2006 and negative working capital deficit of
$24,916,000 and stockholders' deficit of $21,620,000 at June 30,
2006.

Dalrada Financial reported $2,624,000 of net income for the year
ended June 30, 2006, compared to a net loss of $4,218,00 in the
prior year.

For fiscal 2006, the company generated $70,380,000 of revenues, as
compared to $19,476,000 generated for the year ended
June 30, 2005.

At June 30, 2006, the company's balance sheet showed $14,698,000
in total assets and $36,318,000 in total liabilities, resulting in
a $21,620,000 stockholders' deficit.

A full-text copy of the company's annual report is available for
free at http://researcharchives.com/t/s?13b1

                   About Dalrada Financial

Headquartered in San Diego, California, Dalrada Financial
Corporation (OTCBB: DRDF) -- http://www.dalrada.com/-- provides a  
number of professional services related to human resources for
businesses.  Dalrada provides a variety of innovative financial
services to businesses, including comprehensive human resource
administration, workers' compensation coverage, and extensive
employee benefits such as health insurance, HSA savings plans, 125
cafeteria plans, deferred compensation plans, and 401(k) plans.  
Dalrada also offers debit card payroll accounts and payroll
advances.  These services enable small to medium-size employers to
offer benefits and services to their employees that are generally
available only to large companies.

Dalrada provides services through its wholly owned subsidiaries
and division, SourceOne Group, Inc., Master Staffing and Heritage
Staffing.  The Solvis Group, Inc., (OTC: SLVG), its 90% owned
subsidiary, includes several operating units, including
CallCenterHR(TM), Worldwide of California, and M&M Nursing.
Solvis also operates Imaging Tech, Inc., whose proprietary
product, PhotoMotion(TM), is a patented color medium of
multi-image transparencies.


DANA CORP: Court Approves Rejection of Nine Contracts and Leases
----------------------------------------------------------------
Dana Corporation and its debtor-affiliates obtained authority from
the U.S. Bankruptcy Court for the Southern District of New York to
reject nine executory contracts and unexpired leases effective as
of Sept. 30, 2006:

   Contracting Party                      Description
   -----------------                      -----------
   CCA Financial, LLC                     Equipment Lease
   CCA Financial, LLC                     Equipment Lease
   CCA Financial, LLC                     Equipment Lease
   Great America Leasing Corporation      Equipment Lease
   Citicorp Vendor Finance, Inc.          Equipment Lease
   Citicorp Vendor Finance, Inc.          Equipment Lease
   Perry Corporation                      Maintenance Agreement
   Perry Corporation                      Equipment Lease
   Electrolux Consumer Outdoor            Supply Agreement

In their request, as published in the Troubled Company Reporter on
Oct. 6, 2006, the Debtors told the Court that the nine contracts
and leases are not necessary to their ongoing business operations
or restructuring efforts or are no longer profitable.  Thus, the
Debtors' ongoing obligations under the Leases and Contracts,
aggregating approximately $9,500 per month, impose an undue burden
on the Debtors' estates.  

Corinne Ball, Esq., at Jones Day, in New York, asserted that
maintaining the Leases and Contracts under these circumstances
would unnecessarily deplete the assets of the Debtors' estates to
the direct detriment of their creditors.  Moreover, the Debtors
have determined that the Agreements do not have any realizable
value in the marketplace.

Ms. Ball assured the Court that the Debtors have surrendered, or
will surrender by the applicable rejection effective date,
possession of any property leased under the Leases and Contracts
to the Contracting Party concerned.

                      About Dana Corporation

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and  
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  Stahl Cowen Crowley, LLC serves as counsel to the
Official Committee of Non-Union Retirees.  When the Debtors filed
for protection from their creditors, they listed $7.9 billion in
assets and $6.8 billion in liabilities as of Sept. 30, 2005.  
(Dana Corporation Bankruptcy News, Issue No. 23; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


DANA CORP: Gets Court OK to Assume & Assign Liberty Property Lease
------------------------------------------------------------------
Dana Corporation and its debtor-affiliates obtained authority from
the U.S. Bankruptcy Court for the Southern District of New York
for authority to:

   (a) assume a Deed of Lease, dated Aug. 11, 2005, with Liberty
       Property, L.P., for a property located at 6950 Harbour View
       Boulevard, in Suffolk, Virginia;

   (b) assign the Warehouse Lease to Walker International
       Transportation, LLC, effective as of Nov. 1, 2006; and

   (c) establish $2,250 as cure amount for the Warehouse Lease to
       be paid to Liberty.

As reported in the Troubled Company Reporter on Oct. 4, 2006, the
Debtors entered into the Warehouse Lease to secure a location
for some of their warehousing functions relating to, among other
things, the importing and exporting of parts.

The Warehouse Lease is set to expire on Oct. 31, 2011, and calls
for annual rent beginning at approximately $28,000 per month,
which increases periodically over the term of the lease.

The Debtors have determined that outsourcing their Warehousing
Functions would assist them in focusing on strategic decision-
making, increasing efficiency and potentially generating long term
cost savings.

As a part of their outsourcing efforts, the Debtors sought to
assign the Warehouse Lease to Walker.  The Debtors entered into
an operating service agreement with Walker under which Walker
agreed to perform the Warehousing Functions for the Debtors.

Under the outsourcing arrangement in the Walker Contract, the
Debtors will pay $105,000 to Walker in the first year.  The
amount is approximately equal to or less than what the Debtors
are currently paying for similar services.

The Walker Contract will also:

   (a) permit Walker to utilize portions of the Warehouse
       Facility to serve other customers, reducing utilization
       for the Debtors totaling $84,000 per year;

   (b) provide the Debtors with 62-day payment terms; and

   (c) require Walker to pass along 50% of any related
       productivity gains to the Debtors.

                      About Dana Corporation

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and  
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  Stahl Cowen Crowley, LLC serves as counsel to the
Official Committee of Non-Union Retirees.  When the Debtors filed
for protection from their creditors, they listed $7.9 billion in
assets and $6.8 billion in liabilities as of Sept. 30, 2005.  
(Dana Corporation Bankruptcy News, Issue No. 23; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


DAVITA INC: Board Appoints Roger Valine as Member to Three Panels
-----------------------------------------------------------------
DaVita Inc.'s Board of Directors appointed Roger J. Valine as a
member of the Nominating and Governance Committee, the Audit
Committee and the Compliance Committee of the Board of Directors.

The Company had previously reported Mr. Valine's election as a
member of its Board of Directors on July 3, 2006.

Headquartered in El Segundo, California, DaVita (NYSE: DVA) is a
leading provider of dialysis services for patients suffering from
chronic kidney failure.  The Company provides services at kidney
dialysis centers and home peritoneal dialysis programs
domestically in 41 states, as well as Washington, D.C.  As of
March 31, 2006, DaVita operated or managed over 1,200 outpatient
facilities serving approximately 98,000 patients

                         *     *     *

The Company's 6-5/8% Senior Notes due Mar. 15, 2013 carry Standard
& Poor's Ratings Services' B rating.


DELPHI CORP: To Build Hybrid Vehicle Electronics for Ford
---------------------------------------------------------
Ford Motor Company has selected Delphi Corporation to provide
hybrid electrical powertrain systems technologies for two Ford
hybrid vehicle platforms.

Delphi will provide the battery pack systems and cooling systems
for the 2008 Ford Fusion Hybrid and Mercury Milan Hybrid vehicles.  
It will also provide hybrid vehicle electronics for several other
yet-to-be announced vehicle customers.

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


DELPHI CORP: Cerberus Could Buy Equity Stake
--------------------------------------------
Cerberus Capital Management LP may consider purchasing a stake in
Delphi Corporation, The Wall Street Journal reports, citing a
source familiar with the company.

Appaloosa Management, a hedge fund, has previously expressed its
intent to buy equity in Delphi.

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


DESIGN WITHIN: Nasdaq Grants Form 10-Q Filing Extension
-------------------------------------------------------
Design Within Reach Inc. reported that the Nasdaq Listing
Qualifications Panel granted the Company continued listing on
The Nasdaq Global Market provided that the Company files its
quarterly report on Form 10-Q for the period ended July 1, 2006,
and any restatements of prior periods that may be required by
Nov. 24, 2006.

The Company previously reported that it received notice on
Aug. 17, 2006 from The Nasdaq Stock Market, Inc. Listing
Qualifications Staff that the Company's securities were subject to
potential delisting from The Nasdaq Global Market as of Aug. 28,
2006 due to the Company's failure to file its quarterly report on
Form 10-Q for the quarter ended July 1, 2006 on a timely basis.

As permitted by Nasdaq rules, Design Within Reach requested a
hearing before a Nasdaq Listing Qualifications Panel to review the
Nasdaq Staff Determination and request additional time to file its
quarterly report on Form 10-Q.

Design Within Reach's late filing of its quarterly report on
Form 10-Q for the quarter ended July 1, 2006 is due to turnover in
management in the finance department and the previously disclosed
material weaknesses in internal controls over financial reporting,
which resulted in the Company's inability to complete the
reconciliation of a difference between the accrued inventory sub-
ledger and the general ledger.

The difference between the general ledger and the sub-ledger arose
in connection with the implementation of the Company's IMARC
inventory and sales system and inadequate training of finance
personnel with respect to changes in procedures necessitated by
the change in systems.

The Company's new management is devoting intense effort
and resources to completing the accrued inventory account
reconciliation and all other matters necessary so that its Form
10-Q for the quarter ended July 1, 2006 can be filed.  While
Design Within Reach believes it will be able to satisfy these
requirements, there can be no assurances that it will be able
to do so.

Headquartered in San Francisco, California, Design Within Reach,
Inc. -- http://www.dwr.com/-- is an integrated multi-channel   
provider of distinctive modern design furnishings and accessories.  
Founded in 1998, the Company markets and sells its products to
both residential and commercial customers nationwide through the
DWR catalog, studios, website and direct sales force, and a single
common "in stock and ready to ship" inventory.


ENCORE MEDICAL: Tenders Offer for 9.75% Senior Subordinated Notes
-----------------------------------------------------------------
Encore Medical Corporation commenced a cash tender offer to
purchase any and all of the outstanding 9.75% Senior Subordinated
Notes due 2012, of Encore Medical IHC, Inc., and a related consent
solicitation to amend the indenture pursuant to which the Notes
were issued.

The tender offer and consent solicitation are being made in
connection with the Company's agreement to merge with an affiliate
of The Blackstone Group.

The consent solicitation will expire at 5:00 p.m., New York City
time, on Oct. 26, 2006 and the tender offer will expire at
midnight, New York City time, on Nov. 9, 2006.

The total consideration per $1,000 principal amount of Notes will
be equal to the sum of the present value on the scheduled initial
payment date of $1,048.75 on Oct. 1, 2008, plus the present value
of the interest accrued up to, but not including, Oct. 1, 2008.
The total consideration will be calculated by Banc of America
Securities LLC, as Dealer Manager.  The total consideration
includes a consent payment of $30 per $1,000 principal amount of
the Notes, which are purchased and were tendered on or prior to
the consent expiration date.  Holders whose Notes are accepted for
payment will also be paid accrued and unpaid interest up to, but
not including the applicable payment date for Notes purchased in
the tender offer.  The Company expects that the price
determination date will be 11:00 a.m., New York City time, on
Oct. 27, 2006.

In connection with the tender offer, the Company is soliciting
consents to proposed amendments to the indenture governing the
Notes, to eliminate substantially all restrictive covenants and
certain events of default, amend certain provisions of covenants
relating to the merger and consolidation of the Company, the
issuer of the Notes and the subsidiary guarantors and make changes
to certain terms of the defeasance and satisfaction and discharge
provisions.  Holders may not tender their Notes without also
delivering consents or deliver consents without also tendering
their Notes.

For Notes that have been validly tendered prior to the consent
expiration date and are accepted for payment, settlement will
occur on Nov. 3, 2006.  For Notes that have been validly tendered
after the consent expiration date and are accepted for payment,
settlement will occur on Nov. 13, 2006.

The tender offer and consent solicitation are subject to the
satisfaction of certain conditions, including receipt of consents
sufficient to approve the proposed amendments and the Merger
having occurred or occurring substantially concurrent with the
initial payment date.

The Company has retained Banc of America Securities LLC to act as
the Dealer Manager for the tender offer and Solicitation Agent for
the consent solicitation.  Persons with questions regarding the
tender offer and the consent solicitation should contact Banc of
America Securities LLC at (888) 292-0070 (toll-free) or (704)
388-9217.  Requests for documentation may be directed to D.F. King
& Co., Inc., the Information Agent, which can be contacted at
(212) 269-5550 (for banks and brokers only) or (800) 769-7666 (for
all others toll free).

Based in Austin, Texas, Encore Medical Corporation (Nasdaq: ENMC)
-- http://www.encoremed.com/-- is a diversified orthopedic device  
Company that develops, manufactures and distributes orthopedic
devices used for rehabilitation, pain management and physical
therapy.  It also develops, manufactures and distributes surgical
reconstructive implant products.

                         *     *     *

As reported in the Troubled Company Reporter on Oct. 4, 2006
Standard & Poor's Ratings Services assigned its secured loan and
recovery ratings to Encore Medical Finance LLC's proposed
$50 million revolving credit facility maturing in 2012 and
$325 million term loan B maturing in 2013.  The loan was rated 'B'
(at the same level as the 'B' corporate credit rating on parent
company Encore Medical Corp.) with a recovery rating of '2',
indicating the expectation for substantial (80%-100%) recovery of
principal in the event of a payment default.

Standard & Poor's also assigned its 'CCC+' subordinated debt
rating to Encore Medical Finance LLC and Encore Medical Finance
Corp.'s proposed $215 million senior subordinated notes maturing
in 2014.


FALCON PRODUCTS: Debtor Can Terminate S&J Pension Plan
------------------------------------------------------
As reported in the Troubled Company Reporter on Nov. 24, 2005, the
Pension Benefit Guaranty Corporation took over two pension plans
covering nearly 2,300 workers and retirees of the St. Louis-based
institutional furniture maker Falcon Products Inc. and its
subsidiary Shelby Williams Industries Inc.

Prior to the PBGC's takeover of the pension plans, Falcon sought
bankruptcy court approval for a distress termination of its three
defined benefit pension plans.  The third plan is the Sellers and
Josephson, Inc., Employees' Pension Plan.  In a decision published
at 2005 WL 3416130, the Honorable Barry S. Schermer granted
Falcon's motion.  The PBGC appealed (Dist. E.D. Mo. Case No. 4:05-
CV-2247), contending that Falcon should not be permitted to walk
away from the S&J Pension Plan.

In a decision published at 2006 WL 2711640, U.S. District Court
Judge Charles A. Shaw holds that:

     (1) in determining whether distress termination of multiple
         pension plans governed by ERISA is required for a debtor-
         employer to successfully emerge from Chapter 11, a
         bankruptcy court is not required to apply the
         reorganization test on a plan-by-plan basis, but may
         apply the test to all plans in the aggregate;

     (2) the bankruptcy court did not err in making limited
         findings concerning debtors' non-debtor foreign
         subsidiaries; and

     (3) the evidence supported the bankruptcy court's finding
         that the non-debtor foreign subsidiaries lacked
         sufficient assets to fund the pension plans.

Accordingly, Judge Shaw affirmed Judge Schermer's decision.

Judge Shaw's decision follows the reasoning articulated by the
United States Court of Appeals in In re Kaiser Aluminum Corp., 456
F.3d 328 (3d Cir. 2006).  Applying the reorganization test on a
plan-by-plan basis would result in unfair and inequitable
consequences, Judge Shaw reasoned, and is not compelled by the
language of 29 U.S.C. Sec. 1341.

Headquartered in Saint Louis, Missouri, Falcon Products, Inc.
http://www.falconproducts.com/-- designs, manufactures, and  
markets an extensive line of furniture for the food service,
hospitality and lodging, office, healthcare and education segments
of the commercial furniture market.  The Debtor and its eight
debtor-affiliates filed for chapter 11 protection on January 31,
2005 (Bankr. E.D. Mo. Lead Case No. 05-41108).  Brian Wade
Hockett, Esq., and Mark V. Bossi, Esq., at Thompson Coburn LLP
represented the Debtors in their successful restructuring.  When
the Debtors filed for protection from their creditors, they listed
$264,042,000 in assets and $252,027,000 in debts.   On Oct. 18,
2005, the Honorable Barry S. Schermer confirmed the Debtors' Third
Amended Joint Plan of Reorganization.  Falcon emerged from chapter  
1 protection on Nov. 15, 2005, and re-named itself Commercial
Furniture Group.


FEDERAL MOGUL: Court Allows Wilfred Morin, Jr. to Continue Suit
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware approved a
stipulation by Federal-Mogul Corporation and Wilfred J. Morin,
Jr., to lift the stay to allow Mr. Morin to proceed with the
Vermont Action for the limited purpose of obtaining a decision
from the Windsor Superior Court, Windsor County, in Vermont, and
accordingly get hold of any applicable insurance coverage.

As reported in the Troubled Company Reporter on Aug. 17, 2006, in
January 2002, Mr. Morin, commenced a personal injury action in the
Windsor Superior Court against among others, the Debtor.
Mr. Morin sustained injuries due to defective forklift brakes
manufactured by a successor-in-interest to the Debtor.

Mr. Morin sustained the injuries prior to Debtor's filing for
bankruptcy.

The Debtors assert that there is insurance coverage available with
respect to Mr. Morin's claim, which claim is unrelated to
asbestos.

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)


FIREARMS TRAINING: Selling Outstanding Shares to Meggitt-USA
------------------------------------------------------------
Firearms Training Systems Inc. has sold all of its outstanding
shares to Meggitt-USA Inc., an indirect U.S. subsidiary of Meggitt
PLC.

Holders of the Company's Class A Common Stock received cash
in the amount of $1.08 per share owned immediately before the
effective time of the merger and holders of FATS' Series C
Preferred Stock received cash in the amount equal to the sum of
the liquidation preferences of such preferred stock plus accrued
and any unpaid dividends on such shares to the extent not
previously added to the liquidation preference, for each
outstanding share owned immediately before the effective time
of the merger.

All holders of stock options outstanding at the closing received
cash payments equal to the sum of the difference between the per-
share option exercise prices of their respective options and $1.08
for each share subject to an option.

Firearms Training Systems, Inc. -- http://www.fatsinc.com/-- and   
its subsidiary, FATS, Inc., provides fully-integrated, simulated
training to professional military and law enforcement personnel.
Utilizing quality engineered simulated weapons, FATS' state-of-
the-art virtual training solutions offer judgmental, tactical and
combined arms experiences.  The company serves U.S. and
international customers from headquarters in Suwanee, Georgia,
with branch offices in Australia, Canada, Netherlands and United
Kingdom.  The ISO-certified company celebrated its 20th
anniversary in 2004.

                         *     *     *

At June 30, 2006, Firearms Training Systems, Inc.'s balance sheet
showed a $24,931,000 stockholders' deficit compared to a
$25,702,000 deficit at Mar. 31, 2006.


FORD MOTOR: Taps Delphi to Build Hybrid Powertrain Systems
----------------------------------------------------------
Ford Motor Company has selected Delphi Corporation to provide
hybrid electrical powertrain systems technologies for two Ford
hybrid vehicle platforms.

Delphi will provide the battery pack systems and cooling systems
for the 2008 Ford Fusion Hybrid and Mercury Milan Hybrid vehicles.  
It will also provide hybrid vehicle electronics for several other
yet-to-be announced vehicle customers.

Headquartered in Dearborn, Michigan, Ford Motor Company --
http://www.ford.com/-- manufactures and distributes automobiles   
in 200 markets across six continents.  With more than 324,000
employees worldwide, the company's core and affiliated automotive
brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln,
Mazda, Mercury and Volvo.  Its automotive-related services include
Ford Motor Credit Company and The Hertz Corporation.

                           *     *     *

As reported in the Troubled Company Reporter on Aug. 22, 2006,
Dominion Bond Rating Service placed long-term debt rating of Ford
Motor Company Under Review with Negative Implications following
announcement that Ford will sharply reduce its North American
vehicle production in 2006.  DBRS lowered on July 21, 2006, Ford
Motor Company's long-term debt rating to B from BB, and lowered
its short-term debt rating to R-3 middle from R-3 high.  DBRS also
lowered Ford Motor Credit Company's long-term debt rating to
BB(low) from BB, and confirmed Ford Credit's short-term debt
rating at R-3(high).

Fitch Ratings also downgraded the Issuer Default Rating of Ford
Motor Company and Ford Motor Credit Company to 'B' from 'B+'.
Fitch also lowered the Ford's senior unsecured rating to 'B+/RR3'
from 'BB-/RR3' and Ford Credit's senior unsecured rating to 'BB-
/RR2' from 'BB/RR2'.  The Rating Outlook remains Negative.

Standard & Poor's Ratings Services also placed its 'B+' long-term
and 'B-2' short-term ratings on Ford Motor Co., Ford Motor Credit
Co., and related entities on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on July 24, 2006,
Moody's Investors Service lowered the Corporate Family and senior
unsecured ratings of Ford Motor Company to B2 from Ba3 and the
senior unsecured rating of Ford Motor Credit Company to Ba3 from
Ba2.  The Speculative Grade Liquidity rating of Ford has been
confirmed at SGL-1, indicating very good liquidity over the coming
12-month period.  The outlook for the ratings is negative.


GCI INC: Good Performance Prompts S&P's Stable Outlook
------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Anchorage, Alaska-based GCI Inc. to stable from negative.  All
ratings, including the 'BB' corporate credit rating, were
affirmed.  Total debt outstanding as of June 30, 2006, was about
$539 million on an operating lease-adjusted basis.  GCI is a cable
television operator and telecommunications provider.

"The outlook revision reflects the company's solid operating
performance and our expectations for healthy EBITDA growth and
margin expansion as GCI converts local access lines to its own
cable network and increases penetration of bundled services," said
Standard & Poor's credit analyst Allyn Arden.  In the 2006 second
quarter, revenue and EBITDA grew 6.8% and 8.4%, respectively, from
a year earlier, due primarily to increased penetration of bundled
services and greater long distance minutes. S&P expects EBITDA
profitability to improve as GCI transitions more local telephony
customers to its own hybrid fiber coaxial cable network.  While
S&P notes that the conversion to the company's digital local phone
service has been a challenge to date, S&P expects GCI to resolve
these issues as its cable plant is upgraded.  The ability to
leverage its cable assets to reduce reliance on regulation and the
leasing of access lines from the incumbent local exchange carrier
should result in improved profitability longer term.

The ratings on GCI primarily reflect significant exposure to the
highly competitive Alaskan local telecommunications market, lack
of geographic diversity, and limited long-term growth prospects.  
Tempering factors include GCI's well-positioned incumbent cable TV
business.  This business has limited competition from direct-to-
home (DTH) satellite.  Furthermore, the incumbent local exchange
carrier Alaska Communications Systems Group Inc. (ACS) has no on-
network video offering.  GCI also benefits from its Network Access
business, which is bolstered by long-term contracts despite
moderate pricing pressure, and from bundled service offerings,
which have helped reduce churn.  Leverage is moderate at around
3.4x on an operating lease-adjusted basis.

GCI primarily offers telecommunication and cable TV services in
Alaska.  In telecom, the company has been providing long distance
service since 1982 and local service since 1997 through a
combination of owned facilities (switches and undersea fiber
links) and leased local loops.  While the telecom business has
shown impressive growth, including attaining a wireline
penetration almost equal to the incumbent telecom provider in a
number of major Alaskan markets, it still faces highly competitive
conditions.  In contrast, GCI's cable business has a good market
position and the business risk for this segment is viewed as
consistent with a high speculative-grade business profile.


GE COMMERCIAL: Fitch Holds Low-B Ratings on 8 Certificate Classes
-----------------------------------------------------------------
Fitch affirms these GE Commercial Mortgage Securities Corp.
commercial mortgage pass-through certificates, series 2004-C2:

    -- $50.4 million class A-1 at 'AAA';
    -- $125.8 million class A-2 at 'AAA';
    -- $73.4 million class A-3 at 'AAA';
    -- $574.5 million class A-4 at 'AAA';
    -- $299.2 million class A-1A at 'AAA';
    -- Interest-only class X-1 at 'AAA';
    -- Interest-only class X-2 at 'AAA';
    -- $41.3 million class B at 'AA';
    -- $17.2 million class C at 'AA-';
    -- $25.8 million class D at 'A';
    -- $15.5 million class E at 'A-';
    -- $18.9 million class F at 'BBB+';
    -- $17.2 million class G at 'BBB';
    -- $18.9 million class H at 'BBB-';
    -- $10.3 million class J at 'BB+';
    -- $8.6 million class K at 'BB';
    -- $6.9 million class L at 'BB-';
    -- $5.2 million class M at 'B+';
    -- $3.2 million class PPL-1 at 'BBB-';
    -- $3.3 million class PPL-2 at 'BBB-';
    -- $5 million class PPL-3 at 'BB+';
    -- $6.4 million class PPL-4 at 'BB-';
    -- $4 million class PPL-5 at 'B+';
    -- $4.9 million class PPL-6 at 'B'.

Fitch does not rate the $5.2 million class N, the $3.4 million
class O, or the $18.9 million class P certificates.

The rating affirmations reflect the stable pool performance and
minimal paydown since issuance.  As of the October 2006
distribution date, the pool has paid down 1% to $1.36 billion from
$1.38 billion at issuance.

Four loans maintain investment grade credit assessments: Tysons
Corner Center (6.9%), Pacific Place Office Building (6.2%), Lake
Grove Plaza (2%), and the AFR/Bank of America Portfolio (1.3%).

Tysons Corner Center is secured by 1.5 million square feet (sf) of
a regional mall located in McLean, Virginia.  The total debt
consists of four A notes.  The A-2 note is included in this trust.
For year-end 2005, the Fitch stressed debt service coverage ratio
increased to 1.83 times (x) compared to 1.53x at issuance.  
Occupancy as of year -end 2005 remains relatively stable at 98.0 %
since issuance.

Pacific Place Office Building is secured by 196,383 sf of office
space and 130,539 sf of retail space of a building located in San
Francisco, CA.  The total debt consists of a $59.9 million A note
and a $26.85 million B note, which secures the PPL certificates.
For YE 2005, the Fitch stressed DSCR increased to 1.22x compared
to issuance at 1.14x for the entire debt.  Occupancy remains
stable at 100% since YE 2004.

Lake Grove Plaza is secured by a 251,236 sf anchored retail center
located in Lake Grove, New Yrok.  The Fitch stressed DSCR as of YE
2005 increased to 1.51 x compared to 1.36x at issuance.  Occupancy
remains stable at 100% since YE 2005.

The AFR/Bank of America Portfolio was originally secured by 153
properties located in 19 states.  Since issuance, six properties
have been released and the debt has been paid down accordingly.
The total debt on the portfolio consists of six A notes and one B
note.  The A-5 note is included in this trust.  The Fitch stressed
DSCR for YE 2005 was 1.58x compared to 1.79x at issuance.  The
June 30, 2006 occupancy increased to 90% compared to 78.5% at YE
2005.

To date, there have been no realized losses and no delinquent or
specially serviced loans.


GENERAL FIRE: Fitch Affirms then Withdraws BB- IFS Rating
---------------------------------------------------------
Fitch Ratings has affirmed General Fire and Casualty Company's
'BB-' Insurer Financial Strength rating, and simultaneously
withdraws the rating.  Fitch will no longer provide rating
coverage of GenFire.

Fitch has affirmed and withdrawn the following:

General Fire & Casualty Company

    -- IFS at 'BB-'.


GMAC COMMERCIAL: S&P Hacks Rating on Class F Certificates to D
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
F mortgage pass through certificates from GMAC Commercial Mortgage
Securities Inc.'s series 2003-FL1 to 'D' from 'BB'.  At the same
time, the rating on class E is withdrawn, as these certificates
were paid-in full on the October 2006 distribution statement.

The downgrade of class F reflects an ultimate principal loss of 1%
of the security's outstanding principal balance.  When the loan
paid off Sept. 19, 2006, special servicer liquidation fees caused
a shortfall to class F.  Class E was not affected and was paid in
full.

The loan, which had a balance of $13.0 million prior to payoff,
was secured by eight office buildings in upstate New York.
     
                            Rating Lowered
   
               GMAC Commercial Mortgage Securities Inc.
             Mortgage pass-through certificates 2003-FL1

                                   Rating
                                   ------
                       Class    To       From
                       -----    --       ----
                       F        D        BB
    
                          Rating Withdrawn
    
               GMAC Commercial Mortgage Securities Inc.
             Mortgage pass-through certificates 2003-FL1

                                  Rating
                                  ------
                      Class    To       From
                      -----    --       ----
                      E        NR       AA


GOODYEAR TIRE: $975 Million Drawdown Cues Fitch's Negative Watch
----------------------------------------------------------------
Fitch Ratings has placed The Goodyear Tire & Rubber Company on
Rating Watch Negative.  Goodyear's debt and recovery ratings are:

    -- Issuer Default Rating (IDR) 'B';
    -- $1.5 billion first lien credit facility 'BB/RR1';
    -- $1.2 billion second lien term loan 'BB/RR1';
    -- $300 million third lien term loan 'B/RR4';
    -- $650 million third lien senior secured notes 'B/RR4';
    -- Senior Unsecured Debt 'CCC+/RR6'.

Goodyear Dunlop Tires Europe B.V. (GDTE)

    -- $EUR505 million European secured credit facilities
       'BB/RR1'.

Fitch's rating action follows Goodyear's $975 million drawdown of
its $1.5 billion revolver, indicating that the company is prepared
for a possible protracted strike by the United Steel Workers.
Including Goodyear's $500 million deposit-funded facility, the
revolver is essentially fully drawn.  When coupled with Goodyear's
existing cash portfolio and modest near-term maturities, the
drawdown provides ample liquidity to meet short-term financial and
operating requirements.  The drawdowns also eliminate any risk
that the facilities would not have been available as a result of
an extended strike.

The Rating Watch Negative reflects the increasing business risk
posed by the strike, which could adversely impact customer and
dealer relationships, production efficiency, supply-chain
continuity, and financial results.  It remains unclear how long
and how efficiently Goodyear can run its North American plants
with salaried workers, and whether this production, coupled with
overseas supply, can meet customer and dealer commitments on a
timely and profitable basis.  A lengthy strike could cause key OEM
customers to add or substitute suppliers, and any supply
disruption could result in financial penalties.  Volume declines
in North America and Europe in the first half of 2006, as well as
severe commodity price increases, have contributed to weaker
operating results in 2006 despite numerous price increases.  Along
with higher required pension contributions, these factors could
produce negative cash flow in 2006 depending on the actual impact
of the strike.  Cash drains could accelerate in the event of
production difficulties, trade creditor issues or other unforeseen
effects of the strike.  Recent declines in high commodity prices
will benefit Goodyear's material costs, but substantial pension
contributions and operating uncertainties will continue to
pressure cash flow in 2007.  Downward trends in the domestic
replacement tire market and lower production levels for domestic
could ease supply issues in the short term.

Goodyear's balance sheet remains burdened by high levels of debt
that could be exacerbated by potentially negative cash flow in
2006.  Financing costs will continue to rise as a result of the
most recent drawdowns, and any near-term progress in reducing debt
levels will be contingent on meaningful improvement in the
company's cost structure and operating performance that could
prove to be difficult without a favorable outcome from the strike.
Any progress over the near-term is expected to be limited.
Goodyear's access to additional capital may be limited, with
assets largely pledged to first, second and third-lien secured
facilities.  High cash levels will also be reduced as a result of
debt maturities in 2006 and 2007.

Goodyear's North American Tire segment has suffered from a high
cost structure due in part to the company's high labor and legacy
costs and a manufacturing footprint that is more concentrated in
the U.S. than its competitors.  The inability to competitively
produce tires in certain segments has led to Goodyear's decision
to exit certain low-priced, private label product categories and
made the company more dependent on the premium market and new
product introductions where the company's recent efforts have been
successful.  If Goodyear is able to emerge from the strike with a
competitive labor contract (which would include further capacity
reductions and lower benefit costs), and without hurting its
customers, the company will be better positioned to improve its
operating results and credit profile.  Goodyear has previously
targeted cost savings in excess of $1 billion by 2008.

Despite very heavy pension contributions in 2006, Goodyear's
underfunded pension position will continue to place a large claim
on cash flows over the next several years.  Recent U.S. government
pension legislation may also reduce the company's flexibility with
respect to the timing of required contributions over the
intermediate term in the event of weak asset returns.  Goodyear's
pension funds were underfunded by $3 billion at the end of 2005,
and the company anticipates that contributions in 2006 will be
near the low end of its estimate of $650 to $875 million.

Other cash requirements include capital expenditures, forecast by
Goodyear at $720 million in 2006, of which $269 million had been
spent during the first half of the year.  Scheduled debt
maturities include $215 million of 6-5/8% bonds due in 2006 and
$300 million of 8-1/2% bonds due in 2007.  Before the start of the
strike on Oct. 5, 2006 Goodyear had $1.3 billion cash and
equivalents on hand, down from nearly $1.6 billion at June 30,
2006.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the event
of a default.


GOSS GRAPHIC: Court Says Bank One Violated Automatic Stay
---------------------------------------------------------
Gus A. Paloian, the Chapter 7 trustee overseeing the liquidation
of Goss Graphic Systems, Inc., n/k/a GGSI Liquidation, Inc., sued
Grupo Serla SA de C.V., Editorial Comercial, Union Industrial
Mexicana SA de CV, Sergio Eduardo Guarneros Trujillo, and Bank One
(Bankr. N.D. Ill. Adv. Pro. No. 03-A-03888).  Mr. Paloian charges
Bank One with violating the automatic stay, and wants to recover
sums still owing in connection with debtor's prepetition sale of
some printing press in a transaction financed by the bank.

In 1997, Goss sold a printing press to Editorial Comercial for
$5,948,860.  Grupo Serla and Editorial Comercial executed a
$5,370,000 promissory note payable to the order of Goss for the
printing press.  Bank One financed the sale by purchasing the
Grupo Serla Note from Goss.  Bank One extended the financing with
Goss' explicit agreement that it would remain secondarily liable
on the Grupo Serla Note.

In a decision published at 2006 WL 2678487, the Honorable Jack B.
Schmetterer finds that Bank One violated the automatic stay when,
fearful it would recover only pennies on the dollar on account of
a remaining $1.4 million balance owed under a note repurchase
agreement, sold the note (an asset of Goss' estate) executed by
the printing press buyer to a foreign company affiliated with the
buyer which Goss had agreed to repurchase from Bank One.  Judge
Schmetterer says that the bank failed to take reasonable care to
preserve the value of note, the trustee is entitled to
compensatory damages equal to roughly $1.2 million, plus attorney
fees and costs, and Bank One's stay violation warranted punitive
damages award.

Judge Schmetterer relates that Bank One sold the $1.4 million note
for $1.1 million without proper notice to the debtor-seller, even
though it knew that it was thereby impairing the debtor-seller's
rights against the buyer.  By selling the buyer's note without
proper notice to a debtor that had paid more than $5 million
therefor, the bank exercised control over estate assets to further
its own interests at other creditors' expense, Judge Schmetterer
explains.

Goss Graphic Systems, Inc., filed for chapter 11 protection
(Bankr. N.D. Ill. Case No. 01-B-31751) in 2001, and the case
converted to a chapter 7 liquidation proceeding on or about
February 27, 2002.  Now known as GGSI Liquidation, Inc., Gus A.
Paloian serves as the chapter 7 trustee winding up the debtor's
estate.


GREAT ATLANTIC: Posts $500,000 Net Loss in Quarter Ended Sept. 9
----------------------------------------------------------------
The Great Atlantic & Pacific Tea Company Inc. reported unaudited
fiscal 2006 second quarter and year to date results for the 12 and
28 weeks ended Sept. 9, 2006.

Net loss for the quarter was $500,00 versus income of
$592 million.  Last year's results include a $919 million gain on
the sale of A&P Canada.

U.S. sales for the second quarter were $1.57 billion, compared
with $1.60 billion in the second quarter of last year.  U.S. total
comparable store sales increased 0.2% vs. year-ago.  Fiscal 2005
second quarter total sales of $2.2 billion included $600 million
related to A&P Canada that was sold in August 2005.

The results for the second quarter of fiscal years 2006 and 2005
included items the Company considers non-operating in nature.  
Excluding these items, adjusted U.S. loss from operations was $6
million in the second quarter of fiscal 2006 versus a loss of $21
million in last year's second quarter.

U.S. sales for the 28 weeks year to date were $3.7 billion versus
$3.8 billion in 2005.  Total sales of $5.5 billion for last year
included sales of $1.7 billion related to A&P Canada, which was
sold in August 2005.

Net loss for year to date 2006 was $6.6 million, compared to
income of $502.7 million for 2005, which included the gain on the
sale of Canada.

Christian Haub, Executive Chairman of the Board, said, "A&P's
turnaround continued in the second quarter, with our cost control
and sales development strategies again improving operations and
results despite competitive and other external challenges.  Our
performance once again underlines my confidence in our continuous
improvement, toward the goal of overall profitability in Fiscal
2007."

Eric Claus, President and Chief Executive Officer, said, "We
remained on course in the 2nd quarter, further reducing our
operating loss while increasing comparable store sales. Although
summer weather extremes impacted our rate of sales growth compared
with prior quarters, our fundamental merchandising and operating
strategies kept us moving in the right direction.  Going forward,
we remain focused on those strategies and the ongoing improvement
of top and bottom line results."

Founded in 1859, The Great Atlantic & Pacific Tea Company, Inc.,
-- http://www.aptea.com/-- is one of the nation's first  
supermarket chains.  The Company operates 405 stores in 9 states
and the District of Columbia under the following trade names: A&P,
Waldbaum's, The Food Emporium, Super Foodmart, Super Fresh, Farmer
Jack, Sav-A-Center and Food Basics.

                         *     *     *

As reported in the Troubled Company Reporter on April 12, 2006,
Moody's Investors Service changed The Great Atlantic & Pacific Tea
Company, Inc.'s rating outlook to negative from stable and lowered
the company's speculative grade liquidity rating to SGL-3 from
SGL-1.  The company's debt ratings were affirmed including the B3
Corporate Family rating and Caa1 senior unsecured notes rating.

As reported in the Troubled Company Reporter on April 10, 2006,
Standard & Poor's Ratings Services lowered the short-term rating
on The Great Atlantic & Pacific Tea Co. to 'B-3' from 'B-2' and
revised the outlook to stable from developing.  The long-term
corporate credit rating is unchanged at 'B-'.


GREENWOOD RACING: S&P Rates Proposed $265 Mil. Senior Loan at B+
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' rating and
'3' recovery rating to Greenwood Racing Inc.'s proposed
$265 million first-lien senior secured credit facility, reflecting
Standard & Poor's opinion that lenders would receive meaningful
(50%-80%) recovery of principal in the event of a payment default.

Concurrently, a 'B+' corporate credit rating was assigned to
Greenwood Racing.  The outlook is stable.

Proceeds from the proposed financing will repay existing debt;
fund renovation costs; purchase slot machines, furniture, fixtures
and other equipment; and provide initial liquidity.

The ratings on Greenwood Racing reflect its narrow business
position as an operator of a single horse racetrack and casino
(racino; Philadelphia Park), start-up risks associated with the
new slot operations, and the expectation of meaningful competition
from two new slot parlors entering the Philadelphia gaming market
in the next two to three years, as well as from existing casinos
in Atlantic City located about one hour from Philadelphia.  These
factors are tempered by the expected size and depth of the
Philadelphia gaming market, Philadelphia Park's location in
relatively affluent Bucks County, and expected relatively good
initial credit measures for a start-up gaming facility.


GS MORTGAGE: Fitch Rates $3.067 Million Certificates at BB+
-----------------------------------------------------------
Fitch rates these GS Mortgage Securities Corp., GSRPM Mortgage
Loan Trust, series 2006-2:

    -- $117,013,000 privately offered classes A-1A, A-1B and A-2
       (senior certificates) 'AAA';

    -- $7,257,000 privately offered class M-1 'AA+';

    -- $8,903,000 privately offered class M-2 'AA-';

    -- $5,087,000 privately offered class B-1 'A';

    -- $1,870,000 privately offered class B-2 'A-'

    -- $2,020,000 privately offered class B-3 'BBB';

    -- $3,067,000 privately offered class B-4 'BB+'

The 'AAA' rating on the senior certificates reflects the 21.80%
initial credit enhancement provided by 4.85% class M-1, 5.95%
class M-2, 3.40% class B-1, 1.25% class B-2, 1.35% class B-3,
2.05% class B-4, along with overcollateralization.  The initial
and target OC is 2.95%.  In addition, the ratings on the
certificates reflect the quality of the underlying collateral, and
Fitch's level of confidence in the integrity of the legal and
financial structure of the transaction.

The mortgage pool consists of performing, re performing and sub
performing, fixed- and adjustable-rate mortgage loans secured by
first, second and third liens on one- to four-family residential
properties, with an aggregate principal balance of $152,179,755.
As of the cut-off date, September 1, 2006, the mortgage loans had
a weighted average original loan-to-value ratio of 76.56%,
weighted average coupon of 6.898%, weighted average remaining term
to maturity of 315 months and an average principal balance of
$141,038.  Single-family properties account for 74.80% and
approximately 90.46% of the properties are owner occupied.  The
three largest state concentrations are California (15.11%),
Florida (8.92%), and Texas (7.95%).

Approximately 0.05% of the loans may be subject to special rules,
disclosure requirements and other provisions that were added to
the federal Truth-in-Lending Act by the Home Ownership and Equity
Protection Act of 1994, or HOEPA.  As to approximately 99.95% of
the mortgage loans, none of such loans are 'high cost' loans as
defined under any local, state or federal laws.

GS Mortgage Securities Corporation deposited the loans into the
trust, which issued the certificates, representing beneficial
ownership in the trust.  For federal income tax purposes, the
Trust will consist of multiple real estate mortgage investment
conduits.  Deutsche Bank National Trust Company will act as
trustee.  JPMorgan Chase Bank, N.A., rated 'RMS1' by Fitch, will
act as master servicer for this transaction.


HAWS & TINGLE: Court OKs Veritas Advisory as Financial Consultant
-----------------------------------------------------------------
The Honorable Harlin DeWayne Hale of the U.S. Bankruptcy Court for
the Northern District of Texas in Dallas authorized Haws & Tingle
Ltd. to employ Veritas Advisory Group Inc., as its financial
consultant.

As reported in the Troubled Company Reporter on Sept. 13, 2006,
Veritas will provide services to assist the Debtor with the
litigation involving the Estate and Hensel Phelps.

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

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

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

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

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


HCA INC: Shareholders' Special Meeting Set for November 16
----------------------------------------------------------
HCA Inc. has established a record date and special meeting date
for its shareholders to consider and vote upon the proposal to
adopt the previously announced merger agreement providing for the
acquisition of HCA by an investor group led by Bain Capital,
Kohlberg Kravis Roberts & Co., Merrill Lynch Global Private Equity
and HCA founder Dr. Thomas F. Frist, Jr.  

HCA shareholders of record at the close of business on Oct. 6,
2006, will be entitled to notice of the special meeting and to
vote on the proposal.  The special meeting will be held on
Nov. 16, 2006 at 11:00 a.m., local time, at HCA's executive
offices located at One Park Plaza, Nashville, Tennessee 37203.

Headquartered in Nashville, Tennessee, HCA (Hospital Corporation
of America) Inc. (NYSE: HCA) -- http://www.hcahealthcare.com/--  
is a healthcare services provider, composed of locally managed
facilities that include approximately 182 hospitals and 94
outpatient surgery centers in 22 states, England and Switzerland.
At its founding in 1968, HCA was one of the nation's first
hospital companies.


HCA INC: $33 Bil. Merger Deal Cues S&P's B+ Corporate Debt Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its existing ratings on
Nashville, Tennessee-based HCA Inc.  The corporate credit rating
was lowered to 'B+' from 'BB+'.  The ratings were removed from
CreditWatch, where they were placed with negative implications
July 24, 2006, following the announcement that the company had
entered into a merger agreement with a private equity consortium;
the transaction is valued at about $33 billion.  The rating
outlook is negative.

"The three-notch downgrade of the corporate credit rating reflects
our lower rating opinion of HCA assuming that its pending LBO is
completed, and is financed by the $22.5 billion of proposed senior
secured debt currently being considered by investors," explained
Standard & Poor's credit analyst David Peknay.

Also, Standard & Poor's assigned its loan and recovery ratings to
HCA's proposed $16.8 billion senior secured credit facilities and
$5.7 billion second-lien notes.  The first-lien credit facilities
were rated 'BB' with a recovery rating of '1', indicating a high
expectation for full recovery of principal in the event of a
payment default.  The second-lien notes were rated 'BB-' with a
recovery rating of '1', also indicating a high expectation for
full recovery of principal in the event of a default.  The ratings
are subject to revision if the size or terms of the deal change.

In addition, S&P lowered the rating on HCA's senior unsecured
notes by five notches, to 'B-' from 'BB+'.  The rating on the
unsecured notes is now two notches below the 'B+' corporate credit
rating--in line with Standard & Poor's criteria.  Although the
notes are considered senior, the company will now have a sizable
amount of priority debt (primarily secured bank debt and
capitalized operating leases).  Because of the overwhelming
magnitude of priority debt in the capital structure (now totaling
about 100% of total eligible assets -- far greater than the 30%
threshold in our criteria), the unsecured notes are considered
materially disadvantaged.

The low-speculative grade rating on HCA reflects the company's
significant debt leverage as a result of its pending LBO, as well
as key industry risks, such as uncertain third-party
reimbursement, rising bad debt, and competitive forces that have
hurt patient volume.  HCA is the largest U.S. owner and operator
of acute health care facilities, with a large portfolio of 172
hospitals and 95 ambulatory surgery centers in 21 U.S. states, the
U.K., and Switzerland.


HCA INC: Moody's Places Provisional Ratings to Proposed Financing
-----------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to the
proposed financing of the leveraged buyout of HCA Inc.  The
ratings of the existing company remain under review for possible
downgrade.

These are Moody's rating actions:

   HCA Inc. (Newco):

     -- $2,000 ABL Revolver due 2012, (P)Ba2, LGD2, 13%

     -- $2,000 Revolving credit facility due 2012, (P)Ba3, LGD3,
        32%

     -- $2,750 Term Loan A due 2012, (P)Ba3, LGD3, 32%

     -- $8,800 Term Loan B due 2013, (P)Ba3, LGD3, 32%

     -- $1,250 Euro Term Loan due 2013, (P)Ba3, LGD2, 23%

     -- $1,500 Second Lien PIK Notes due 2016, (P)B2, LGD4, 57%

     -- $4,200 Second Lien Notes due 2016, (P)B2, LGD4, 57%

     -- Corporate Family Rating, (P)B2

     -- PDR, B2

     -- Speculative Grade Liquidity Rating, SGL-2

Outlook is stable.

The provisional ratings are subject to Moody's review of final
documentation.

These ratings remaining under review for possible downgrade:

   HCA Inc. (Oldco):

     -- Senior Unsecured Revolving Credit Facility, Ba2, LGD4,
        60%

     -- Senior Unsecured Notes, Ba2, LGD4, 60%

     -- Corporate Family Rating, Ba2

     -- Speculative Grade Liquidity Rating, SGL-2

     -- PDR, Ba2

Moody's expects to conclude the rating review and withdraw the
Corporate Family Rating of HCA Inc. (Oldco) at the closing of the
transaction.  The ratings for the securities to be tendered are
also expected to be withdrawn once the tender offer is completed.
Moody's anticipates that it will downgrade existing senior
unsecured notes remaining in the capital structure of HCA Inc.
(Newco) (notes with maturities of 2010 and beyond) to Caa1 at the
closing of the transaction reflecting the deeply subordinated
position of these instruments in the proposed capital structure.

The review of the ratings was initiated on July 24, 2006 following
the announcement that the company had agreed to be acquired in a
leveraged buyout led by private equity investors Bain Capital,
Kohlberg Kravis Roberts & Co., and Merrill Lynch Global Private
Equity.  The transaction is valued at approximately $33 billion,
including the assumption or repayment of approximately $11.7
billion of existing debt, and is expected to close in the fourth
quarter of 2006.

HCA Inc.'s (Newco) Corporate Family Rating of (P)B2 is primarily
driven by the significant increase in financial leverage and the
resulting constraints on cash flow and interest coverage metrics.
Moody's believes the increased debt load will result in a
significant reduction in financial flexibility in a period in
which the company and the sector are challenged by weak volume
trends and increasing exposure to bad debt.  Therefore, Moody's
placed additional weight on these factors in determining the
Corporate Family Rating resulting in a differentiation between the
assigned rating and the indicated rating of Ba3 under the Global
For-Profit Hospital Rating Methodology.

The significant financial leverage expected following the
transaction results in a number of financial metrics that
constrain the rating. Operating and free cash flow coverage of
debt, two of the most heavily weighted factors in Moody's rating
methodology, are expected to be at levels appropriate for the
single B and Caa rating categories, respectively, throughout the
rating horizon.

The assignment of a speculative grade liquidity rating of SGL-2 to
HCA Inc. (Newco) reflects our expectation of good liquidity over
the twelve months following the transaction.  Moody's anticipates
cash flow metrics will be constrained as a result of the increased
debt associated with the leveraged buyout of the company for the
four quarters ending December 31, 2007.  Moody's estimates that
the company will have to fund over $2.0 billion in cash interest
expense for the year ended December 31, 2007.

The stable outlook reflects Moody's expectation that HCA Inc.
(Newco) will be able to offset lower admission growth trends with
expense management, especially in the areas of salaries, wages and
benefits and supply costs and, therefore, continue to modestly
grow EBITDA.  Moody's also notes that the company has no near term
maturities as a result of the proposed capital structure thereby
reducing any near term refinancing risk.

HCA Inc., headquartered in Nashville, Tennessee, is the nation's
largest and most diversified acute care hospital company.  At June
30, 2006, the company, through its subsidiaries, owned and
operated 176 hospitals and 92 freestanding surgery centers and
outpatient facilities.  The company's subsidiaries were also
partners in joint ventures that owned and operated seven hospitals
and seven freestanding surgery centers.


HEXION SPECIALTY: Debt-Funded Dividend Prompts S&P to Cut Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Hexion Specialty Chemicals Inc. to 'B' from 'B+'.  The
outlook is stable.  S&P also lowered the rating on the existing
$225 million first-lien senior secured revolving credit facility
to 'B' from 'B+' and revised the recovery rating to '2' from '3';
this indicates our expectation for substantial recovery of
principal in the event of a default.

At the same time, S&P assigned a 'B' bank loan rating with a
recovery rating of '2' to the company's proposed $2 billion first-
lien senior secured term loan and $50 million first-lien synthetic
letter of credit facility.  The 'B' rating and recovery rating of
'2' indicate the expectation for substantial (80% to 100%)
recovery of principal in the event of a default.

In addition, S&P assigned a 'B-' rating and a recovery rating of
'3' to a proposed $825 million second-lien senior secured notes
issue.  The 'B-' rating and the recovery rating of '3' indicate
the expectation for a meaningful (50% to 80%) recovery of
principal in the event of a default.  The 'B-' rating on the
second-lien senior secured notes is one notch lower than the
corporate credit rating reflecting the notes' junior claim on
collateral and the presence of higher priority claims, including
the first-lien debt, in the capital structure.  The term loan and
the notes will be used to pay down existing debt and to fund a
$500 million dividend payout to equity holders.  The ratings are
based on preliminary terms and conditions.

The downgrade follows Hexion's recent announcement of a
$500 million planned dividend payout to its equity holder, Apollo
Management L.P., and reflects our increased concern related to the
company's very aggressive financial policy and an increase in
financial risk.

"The debt-funded dividend will result in higher leverage than
anticipated at the previous rating, and brings into question the
company's commitment to reduce debt in order to support credit
quality," said Standard & Poor's credit analyst Paul Kurias.  "In
addition, the increase in leverage comes at a time when some end-
markets, notably the housing sector, are weakening somewhat, and
increases the company's vulnerability to potential declines in
operating performance if conditions deteriorate."

The ratings on Hexion reflect a highly leveraged financial
profile, a very aggressive financial policy, and a weak business
risk profile as a global manufacturer and marketer of thermoset
resins.  Hexion was created by the merger of Borden Chemical Inc.
(including Bakelite AG), Resolution Specialty Materials LLC (RSM),
and Resolution Performance Products LLC (RPP).  The combination
created one of the largest specialty and industrial chemical
companies in North America with a diversified product portfolio,
technology base, end market sales, and geographic sales base.


INT'L BIOANALOGICS: Inks Amalgamation Agreement with reWORKS Inc.
-----------------------------------------------------------------
International Bioanalogics Systems, Inc. has entered into an
amalgamation agreement dated Sept. 29, 2006 with reWORKS Inc., an
Ontario based company.

Pursuant to the terms of the Amalgamation Agreement, reWORKS will
amalgamate with a subsidiary of IBO resulting in reWORKS becoming
a wholly owned subsidiary of IBO (the RTO).  Upon completion of
the RTO, IBO will change its name to reWORKS Environmental Corp.

The RTO will be a reverse take over pursuant to the policies of
the TSX Venture Exchange and is an arm's length transaction.

As a condition of the RTO, reWORKS is undertaking a private
placement of not less than $1,100,000.  It is expected that the
reWORKS Financing will be completed through the issuance of units
at $0.25 per Unit, that each Unit will consist of one common share
of reWORKS and one common share purchase warrant, and that each
Warrant may be exercised within 12 months from the date of issue
at a price of $0.40.  The reWORKS Financing will be brokered and
it is expected that the majority of the private placement
subscribers will be at arm's length to IBO and reWORKS. The
proceeds from the reWORKS Financing will be used for working
capital, marketing and the acquisition of worms and equipment.

Articles of amendment will be filed by IBO immediately prior to
completion of the amalgamation, providing for the consolidation of
common shares in IBO on a basis such that the issued and
outstanding IBO Shares immediately following the consolidation
will represent 10% of the issued and outstanding IBO shares
immediately following the completion of the RTO but in any event
on the basis of not less than 1 post-consolidation IBO Share for
each 2.9543557 pre-consolidation IBO common share.  Thereafter,
reWORKS will amalgamate with the subsidiary of IBO and the holders
of securities in reWORKS will receive securities in IBO as
follows:

   (a) one post-consolidation common share of IBO for every one
       reWORKS common share outstanding;

   (b) one warrant to purchase a post-consolidation common share
       of IBO for every warrant to purchase a reWORKS common
       share; and

   (c) one option to purchase a post-consolidation common share
       of IBO for every option to purchase a reWORKS common
       share.

For the purposes of the RTO, reWORKS is valued at approximately
$8,308,000 based on prior arm's length financings completed by
reWORKS.  The total consideration to be paid by IBO for the
reWORKS shares will be approximately $8,308,000, based on a deemed
issue price of $0.20 for each post-consolidation common share of
IBO and assuming the Minimum Financing.

The RTO is subject to a number of conditions that must be
satisfied or waived by the parties before the transaction can
proceed. The RTO is subject to regulatory and Exchange approval.
The shareholders of both IBO and reWORKS must approve the RTO. The
RTO is also conditional upon fulfillment of standard conditions,
including but not limited to, satisfaction of due diligence
conditions and sponsorship requirements. There can be no assurance
that the transaction will be completed as proposed or at all.

Upon completion of the RTO, it is anticipated that IBO will have
five directors, two of whom will be a nominees of IBO, 2 of whom
will be nominees of reWORKS, and one of whom will be independent.

                       About reWORKS Inc.

Headquartered in Toronto, Ontario, reWORKS Inc. --
http://www.wormworkssoil.com/-- operates in the organic waste  
diversion sector and is in the business of converting organic
waste into worm castings.  Worm castings are high grade organic
soil rejuvenators.

The company has completed construction of a facility in Toronto
which is designed to process up to 60 tons of organic waste per
day.  reWORKS has just begun to accept organic waste on a
commercial scale but the facility is not yet operating at full
production.

                About International Bioanalogics

International Bionanalogics Systems, Inc. was incorporated in the
state of Oregon and was publicly traded on the Canadian Venture
Exchange until being delisted during 2002 for failure to file
required reports in accordance with regulations.  At present, the
company is not active and is in the process of seeking relisting
in order to pursue other business opportunities.

                         *     *     *

In its annual financial statements for the year ended April 30,
2006, International Bioanalogics reports a net loss of $162,732,
and a shareholders' deficit of $599,270 at April 30, 2006.  The
company is presently attempting to settle all of its debts with
creditors and noteholders, and acquire additional funding to
settle remaining liabilities and notes payable.


INTERSTATE BAKERIES: Post $379M Net Loss in Year Ended May 25, '05
------------------------------------------------------------------

                  Interstate Bakeries Corporation
                    Consolidated Balance Sheet
                        As of May 28, 2005

ASSETS

Current assets:
    Cash                                            $151,558,000
    Accounts receivable                              176,781,000
    Inventories                                       69,431,000
    Assets held for sale                              10,582,000
    Other current assets                              83,850,000
                                                  --------------
Total current assets                                 492,202,000

Property and equipment, net                          705,373,000
Goodwill                                                       -
Other intangible assets                              162,043,000
Other assets                                          39,032,000
                                                  --------------
Total assets                                      $1,398,650,000
                                                  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Long-term debt payable within one year          $482,199,000
    Accounts payable                                 101,141,000
    Accrued expenses                                 260,442,000
                                                  --------------
Total current liabilities                            843,782,000

Long-term debt                                                 -
Other liabilities                                    299,391,000
Deferred income taxes                                 90,172,000
                                                  --------------
Total liabilities not subject to compromise        1,233,345,000
                                                  --------------
Liabilities subject to compromise                    282,229,000
                                                  --------------

Stockholders' equity (deficit):
    Preferred stock                                            -
    Common stock                                         816,000
    Additional paid-in capital                       586,089,000
    Retained earnings (loss)                         (14,394,000)
    Treasury stock                                  (678,379,000)
    Unearned restricted stock compensation            (3,521,000)
    Accumulated other comprehensive loss              (7,535,000)
                                                  --------------
Total stockholders' equity (deficit)                (116,924,000)
                                                  --------------
Total liabilities and stockholders' equity        $1,398,650,000
                                                  ==============

                  Interstate Bakeries Corporation
               Consolidated Statement of Operations
                      Year Ended May 28, 2005

Net sales                                         $3,403,505,000

Less:
    Cost of products sold                          1,724,054,000
    Selling, delivery & admin expenses             1,630,921,000
    Restructuring charges                             54,293,000
    Other charges                                              -
    Depreciation and amortization                     89,486,000
    Loss on sale or abandonment of assets             10,744,000
    Goodwill impairment                              215,346,000
    Other intangible assets impairment                14,197,000
                                                  --------------
Operating income (loss)                             (335,536,000)

Interest expense                                      41,430,000
Reorganization charges, net                           39,206,000
Other income                                            (353,000)
                                                  --------------
Income (loss) before income taxes                   (415,819,000)
Provision (benefit) for income taxes                 (36,539,000)
                                                  --------------
Net income (loss)                                  ($379,280,000)
                                                  ==============

                  Interstate Bakeries Corporation
               Consolidated Statement of Cash Flows
                      Year Ended May 28, 2005

Operating activities:
    Net income (loss)                              ($379,280,000)
    Depreciation and amortization                     89,486,000
    Provision for deferred income taxes                7,750,000
    Reorganization charges, net                       39,206,000
    Cash reorganization items                        (26,473,000)
    Non-cash interest expense - deferred debt fee      5,616,000
    Non-cash interest on swap agreements                (655,000)
    Non-cash common stock award                                -
    Non-cash restricted stock and
       deferred share compensation expense             1,762,000
    Loss on sale, write-down or abandonment of as     34,302,000
    Write-off of goodwill and other intangibles      242,410,000
    Write-down of software assets                      4,424,000
    Write-off prior service cost asset                12,384,000
    Income tax benefit on employee stock transactions          -
Change in operating assets and liabilities:
    Accounts receivable                                5,279,000
    Inventories                                        2,470,000
    Other current assets                              (6,586,000)
    Accounts payable and accrued expenses             51,490,000
    Long-term portion of self insurance reserves      19,439,000
    Other                                             13,332,000
                                                  --------------
Net cash from operating activities                   116,356,000

Investing activities:
    Purchases of property and equipment              (29,175,000)
    Sale of assets                                     4,156,000
    Acquisition of other intangible assets                     -
    Acquisition and development of software asset     (6,206,000)
    Other                                                513,000
                                                  --------------
Net cash used in investing activities                (30,712,000)

Financing activities:
    Reduction of long-term debt                      (75,647,000)
    Increase in revolving credit facility             11,902,000
    Issuance of convertible bonds                    100,000,000
    Common stock dividends paid                                -
    Stock option exercise proceeds                             -
    Acquisition of treasury stock                       (192,000)
    Cash reorganization items                           (398,000)
    Debt fees                                         (9,479,000)
                                                  --------------
Net cash from (used in) financing activities          26,186,000
                                                  --------------
Net increase (decrease) in cash                      111,830,000
Cash, at the beginning of period                      39,728,000
                                                  --------------
Cash, at the end of period                          $151,558,000
                                                  ==============

A full-text copy of Interstate Bakeries Corporation's annual
report on Form 10-K for the fiscal year ended May 28, 2005, is
available for free at http://ResearchArchives.com/t/s?13c2

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 Aug. 15, 2014, on Aug. 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 50; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


INTERSTATE BAKERIES: Posts $33M Net Loss in Year Ended May 24, '04
------------------------------------------------------------------

                  Interstate Bakeries Corporation
                     Consolidated Balance Sheet
                        As of May 29, 2004

ASSETS

Current assets:
    Cash                                             $39,728,000
    Accounts receivable                              182,060,000
    Inventories                                       71,901,000
    Assets held for sale                                 452,000
    Other current assets                             108,577,000
                                                  --------------
Total current assets                                 402,718,000

Property and equipment:
    Land and buildings                               462,668,000
    Machinery and equipment                        1,088,985,000
                                                  --------------
Total property and equipment                       1,551,653,000
Less accumulated depreciation                       (738,728,000)
                                                  --------------
Net property and equipment                           812,925,000

Goodwill                                             215,346,000
Other intangible assets                              190,416,000
Other assets                                          52,392,000
                                                  --------------
Total assets                                      $1,673,797,000
                                                  ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
    Long-term debt payable within one year          $542,701,000
    Accounts payable                                 158,754,000
    Accrued expenses                                 275,354,000
                                                  --------------
Total current liabilities                            976,809,000
                                                  --------------

Long-term debt                                        10,362,000
Other liabilities                                    311,183,000
Deferred income taxes                                113,735,000
                                                  --------------
Total long-term liabilities                          435,280,000

Stockholders' equity:
    Preferred stock                                            -
    Common stock                                         816,000
    Additional paid-in capital                       586,616,000
    Retained earnings                                364,886,000
    Treasury stock                                  (679,016,000)
    Treasury stock held in rabbi trust                         -
    Unearned restricted stock compensation            (6,982,000)
    Accumulated other comprehensive loss              (4,612,000)
                                                  --------------
Total stockholders' equity                           261,708,000
                                                  --------------
Total liabilities and stockholders' equity        $1,673,797,000
                                                  ==============

                  Interstate Bakeries Corporation
               Consolidated Statement of Operations
                      Year Ended May 29, 2004

Net sales                                         $3,467,562,000

Less:
    Cost of products sold                          1,733,303,000
    Selling, delivery & administrative expenses    1,643,757,000
    Restructuring charges                             12,066,000
    Other charges                                              -
    Depreciation and amortization                     91,024,000
    Loss on sale or abandonment of assets              5,738,000
                                                  --------------
Operating income (loss)                              (18,326,000)

Other income                                            (331,000)
Interest expense                                      37,543,000
                                                  --------------
Income (loss) before income taxes                    (55,538,000)
Provision (benefit) for income taxes                 (22,168,000)
                                                  --------------
Net income (loss)                                   ($33,370,000)
                                                  ==============

                  Interstate Bakeries Corporation
               Consolidated Statement of Cash Flows
                      Year Ended May 29, 2004

Cash flows from operating activities:
    Net income (loss)                               ($33,370,000)
    Depreciation and amortization                     91,024,000
    Provision for deferred income taxes               (5,336,000)
    Non-cash interest expense - deferred debt fees     2,461,000
    Non-cash interest on swap agreements              (3,217,000)
    Non-cash common stock award                                -
    Non-cash restricted stock & deferred
       share compensation expense                      2,146,000
    Loss on sale/write-down or abandonment of assets   7,146,000
    Income tax benefit on employee stock transactions      4,000
Change in operating assets and liabilities:
    Accounts receivable                                  678,000
    Inventories                                        2,780,000
    Other current assets                             (15,354,000)
    Accounts payable and accrued expenses             25,817,000
    Long-term portion of self insurance reserves      33,870,000
    Other                                              3,650,000
                                                  --------------
Cash from operating activities                       112,299,000

Cash flows used in investing activities:
    Purchases of property and equipment              (55,266,000)
    Proceeds from sale of assets                       4,701,000
    Acquisition of other intangible assets              (198,000)
    Acquisition and development of software assets   (14,758,000)
    Other                                               (245,000)
                                                  --------------
Cash used in investing activities                    (65,766,000)

Cash flows used in financing activities:
    Reduction of long-term debt                      (41,145,000)
    Addition to long-term debt                                 -
    Common stock dividends paid                       (9,479,000)
    Stock option exercise proceeds                       776,000
    Acquisition of treasury stock                        (53,000)
    Debt fees                                         (1,865,000)
                                                  --------------
Cash used in financing activities                    (51,766,000)
                                                  --------------
Change in cash                                        (5,233,000)
Cash, beginning of period                             44,961,000
                                                  --------------
Cash, end of period                                  $39,728,000
                                                  ==============

A full-text copy of Interstate Bakeries Corporation's annual
report on Form 10-K for the fiscal year ended May 29, 2004, is
available for free at http://ResearchArchives.com/t/s?13c0

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 Aug. 15, 2014, on Aug. 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 50; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


INVESCO CBO: Fitch Holds BB- Rating on $8 Million Notes
-------------------------------------------------------
Derivative Fitch affirms these five classes of notes issued by
Invesco CBO 2000-1 Ltd.  These affirmations are the result of
Fitch's review process and are effective immediately.

    -- $2,500,244 class A-1L notes at 'AAA';
    -- $78,000,000 class A-2L notes at 'AAA';
    -- $26,000,000 class A-3 notes at 'AAA';
    -- $19,500,000 class B-1L notes at 'BBB-';
    -- $8,000,000 class B-2 notes at 'BB-'.

Invesco CBO 2000-1 is a collateralized bond obligation (CBO)
managed by Invesco, Inc., which closed on Oct. 26, 2000. Invesco
CBO 2000-1 is composed of primarily corporate high-yield bonds and
loans.  As part of this review of Invesco CBO, Fitch discussed the
current state of the portfolio with the asset manager and their
portfolio management strategy going forward

The affirmations are the result of deleveraging of the class A-1L
notes and the improved coverage on the senior notes, offset by the
slight deterioration of the collateral.  The class A-1L notes paid
down approximately $17.72 million on the last payment date,
according to the last trustee report dated Sept. 2, 2006, leaving
$2.50 million, or 1.17%, of the original principal balance.  As a
result, the class A overcollateralization ratio increased to
136.10% from 126.8% since the last review on Nov. 28, 2005.  
However, Invesco continues to fail at its weighted average rating
factor and below 'CCC+' tests.  The percentage of the collateral
below 'CCC+' increased to 11.50% from 10.75% with a trigger of
7.5%, and the WARF remained at 'B-'.  In addition, the class B-1L
and B-2 overcollateralization ratios increased to 114.50% and
111.40% from 114.50% and 107.30%, respectively.

The rating of the class A notes addresses the likelihood that
investors will receive full and timely payments of interest, as
per the governing documents, as well as the stated balance of
principal by the legal final maturity date.  The rating of the
class B notes addresses the ultimate payments of the cumulative
interest amount and principal by the legal final maturity date.

Fitch will continue to monitor and review this transaction for
future rating adjustments.


KB HOME: Disputes Notice of Default for 6-1/4% Senior Notes
-----------------------------------------------------------
KB Home received a letter on Oct. 18, 2006, purporting to be a
notice of default under the indenture related to its
6-1/4% Senior Notes due 2015.  The letter asserts that KB Home is
in default under the indenture because of the delay in filing its
Quarterly Report on Form 10-Q for the quarter ended Aug. 31, 2006
with the Securities and Exchange Commission.

KB Home has notified the senders of this letter, and the trustee
under the Indenture, that the letter does not satisfy the
indenture requirements for a notice of default, in part because
the letter fails to take into account the 15 day period following
the Securities and Exchange Commission filing date as specified in
the reporting covenant at issue.

In the event the above-mentioned letter is not invalid, or if a
subsequent valid notice of default for the delayed 10-Q filing is
delivered to KB Home under the indenture for any series of its
senior notes, and KB Home fails to cure the default within the 60
days after notice is given, the default could become an "event of
default" under the indenture, allowing the Trustee or the holders
of at least 25% in aggregate outstanding principal amount of such
senior notes to accelerate the maturity of the series of senior
notes.

Headquartered in Los Angeles, California, KB Home (NYSE: KBH) --
http://www.kbhome.com/-- is a homebuilder with domestic operating  
divisions in some of the fastest-growing regions and states: West
Coast-California; Southwest-Arizona, Nevada and New Mexico;
Central-Colorado, Illinois, Indiana and Texas; and Southeast-
Florida, Georgia, North Carolina and South Carolina.  Kaufman &
Broad S.A., the Company's publicly traded French subsidiary, a
homebuilding company in France.  It also operates KB Home Mortgage
Company, a full-service mortgage company for the convenience of
its buyers.

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 15, 2006,
Fitch Ratings affirmed and revised the Rating Outlook to Stable
from Positive these ratings for KB Home's Issuer Default Rating
'BB+', Senior unsecured debt and revolving credit facility 'BB+'
and Senior subordinated debt 'BB-'.

As reported in the Troubled Company Reporter on July 14, 2006,
Moody's Investors Service affirmed all of the ratings of KB Home,
including its Corporate Family Rating of Ba1, senior debt rating
of Ba1, and senior subordinated debt rating of Ba2.  The rating
outlook is revised to stable, from positive.


KERR-MCGEE: Anadarko Guarantee Prompts S&P to Upgrade Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit and
senior unsecured debt ratings on oil and gas independent
exploration and production company Kerr McGee Corp. to 'BBB-' from
'BB+' and removed the ratings from CreditWatch with positive
implications.  The rating action reflects Anadarko Petroleum
Corp.'s (BBB-/Stable/A-3) guarantee of Kerr McGee's debt,
following its acquisition of Kerr McGee on Aug. 15, 2006.

The outlook is stable.  The ratings on Kerr-McGee were originally
placed on CreditWatch June 23, 2006.

The ratings on Anadarko reflect its strong business risk profile,
enhanced by recent acquisitions that have upgraded its exploration
inventory and large, competitive positions in the U.S. Rocky
Mountain and the deepwater Gulf of Mexico.

"The stable outlook reflects expectations that current debt levels
will be reduced by at least $15 billion through proceeds from
asset sales and equity issuance over the next 12 to 18 months,"
said Standard & Poor's credit analyst John Thieroff.

Anadarko has a 3.6 billion barrel of oil equivalent reserve base,
which is sufficiently diverse yet fairly well focused within core
areas.


MERIDIAN AUTOMOTIVE: Ionia City Council Grants Two Tax Exemptions
-----------------------------------------------------------------
The Ionia city council issued two exemption certificates to
Meridian Automotive Systems, Inc., Gary A. Schlueter of Ionia
Sentinel-Standard reports.  The certificates are an Industrial
Facilities Exemption Certificate and a personal property tax
exemption certificate that will run from Dec. 31, 2006,
through 2018.

The Industrial Facilities Exemption provides Meridian with a 50%
tax savings on a planned purchase of $1,352,000 worth of new
equipment for its buffing, welding, and plating lines.

"Advancing the company these exemptions will help ensure Meridian
stays in Ionia," Mayor Dan Balice told the Sentinel-Standard.  
"By issuing this IFT, we will help preserve what is a very
important employer here in town.  In addition, its cost to the
city is only around $2,000."

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


NATIONAL HEALTH: Strategy Evaluation Plan Cues S&P's Neg. Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on National
Health Investors Inc. on CreditWatch with negative implications.

The CreditWatch listing affects roughly $100 million of public
senior notes and was prompted by the board of directors' Oct. 11,
2006, announcement that it has formed a special committee and
retained a financial advisor to help evaluate strategic
alternatives for enhancing shareholder value.  The board's formal
announcement followed a recently disclosed but rejected buyout
offer for $30 per share made Oct. 5, 2006, by Andrew Adams, NHI's
chief executive officer and significant shareholder.  Although the
offer was deemed inadequate, the special committee requested
additional details on certain aspects of the proposal.

Currently, NHI is very lowly leveraged for a 'BB' rating, roughly
20% debt to capitalization at June 30, 2006.  Additionally, the
company has maintained cash balances for the past few years that
have been more than sufficient to meet its primary debt
obligation. NHI had $155 million at the end of the second quarter
to handle a single $100 million public note issue due June 2007.

The company's asset base ($587 million), however, is very small by
public REIT standards, and the nature of this potential go-private
transaction and its financing terms are unknown at this time.  In
addition, other bidders for the company may surface.  S&P will
lower the ratings if a significant amount of debt is placed on
NHI's balance sheet to effect a recapitalization. It is also
possible, but perhaps less likely, that S&P will affirm the
ratings and remove them from CreditWatch if the status quo is
maintained or the ultimate acquirer maintains a moderate balance
sheet.  However, it is more likely that a potential buyer will
leverage the surviving entity more highly.  S&P will continue to
monitor developments as they unfold.
    
Ratings Placed on Creditwatch Negative
    
National Health Investors Inc.      Rating
                              To               From

Corporate credit             BB/Watch Neg/--  BB/Stable/--
Senior unsecured debt        BB/Watch Neg     BB


NICHOLAS-APPLEGATE: Moody's Puts B1-Rated $10-Mil. Notes on Watch
-----------------------------------------------------------------
Moody's Investors Service reported that it has placed the notes
issued by Nicholas-Applegate CBO II, a collateralized debt
obligation issuer, on watch for possible downgrade:

   * $32,400,000 million Class B Floating Rate Notes Due 2013

     -- Previous Rating: A3
     -- Current Rating: A3

   * $13,750,000 million Class C Floating Rate Notes Due 2013

     -- Previous Rating: Baa3
     -- Current Rating: Baa3

   * $10,000,000 million Class D Floating Rate Notes Due 2013

     -- Previous Rating: B1
     -- Current Rating: B1

Moody's noted that the transaction, which closed in 2001, is
currently failing its Minimum Coupon Test (8.31% vs. the
covenanted level of 9.8%) and the Maximum Rating Factor
Distribution Test (2849 vs. the covenanted level of 2720).


NORTHWEST PARKWAY: S&P Revises Outlook on Bonds to Negative
-----------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Northwest Parkway Public Highway Authority, Colorado's
$417 million senior-lien bonds series 2001A-C (underlying rating
affirmed at 'B-') and $52.5 million first-tier subordinate bonds
series 2001D (affirmed at 'CCC') to negative from stable.

"Although the parkway currently has the capacity to meet its
financial commitments through fiscal 2007, absent dramatic and
continued improvement in operating and financial performance or
other assistance, the ratings could lowered if the authority needs
to rely on its debt service reserve fund in 2008," said Standard &
Poor's credit analyst Laura Macdonald.

The bonds were issued to help finance the construction of the
Northwest Parkway, an 11-mile Denver-area toll road from State
Highway 128 in the west to Interstate 25 in the east.

The low speculative-grade ratings continue to reflect concerns
regarding the startup toll road's traffic and revenue performance
since opening.  Fiscals 2006 and 2007 revenues are anticipated to
total $6.8 million and $7.6 million, respectively, or 61% and 66%
lower than forecasted.  This raises concerns regarding the toll
road's ability to meet both senior and junior debt service
payments, which both begin in fiscal 2006.  It is anticipated that
the debt service reserve fund could be relied upon starting as
early as fiscal 2008 to meet debt service payments, and the
reserve fund will have to be tapped for the next few years absent
significant improvement in traffic and revenues or a debt
restructuring.

The authority had been working on a debt restructuring.  However,
on Aug. 29 the board announced it would also seek private sector
proposals for the long-term operation and management of the
parkway.  This came after the board received an unsolicited
proposal from an outside group of institutional investors
interested in acquiring a concession for the operational and
maintenance control of the highway.  A formal request for proposal
will be issued to a short list of bidders with the current
schedule for due diligence to occur through February 2007,
selection of a bidder by the end of March, and a financial close
by the end of May.  Under any agreement, the private sector
partners would eliminate all of the long-term debt held by
bondholders.

"The current ratings do not factor in the authority's plans to
either restructure the debt or privatize the road, as the ultimate
timing and success of these plans remains uncertain," said Ms.
Macdonald.


NOVA CHEMICALS: Moody's Pares Ratings to $1.25 Billion Debt
-----------------------------------------------------------
Moody's Investors Service downgraded NOVA Chemicals Corporation  
corporate family rating and its senior unsecured debt ratings to
Ba3 from Ba2.  Moody's also affirmed NOVA's speculative grade
liquidity rating at SGL-3 and the company's LGD assessments.  The
rating outlook is negative.

Ratings Downgraded:

   Issuer: NOVA Chemicals Corporation

     -- Corporate Family Rating, Downgraded to Ba3 from Ba2

     -- Probability of Default Rating, Downgraded to Ba3 from Ba2

     -- $400 million Floating Rate Global Senior Unsecured Notes
        due 11/2013, Downgraded to Ba3 from Ba2

     -- $400 million 6.5% Global Senior Unsecured Notes due
        1/2012, Downgraded to Ba3 from Ba2

     -- $125mm 7.25% Senior Unsecured Debentures due 8/2028,
        Downgraded to Ba3 from Ba2

     -- $100 million 7.875% Senior Unsecured Debentures due
        9/2025, Downgraded to Ba3 from Ba2

Ratings affirmed:

   Issuer: NOVA Chemicals Corporation

     -- Loss Given Default Assessments for all rated unsecured
        debt, LGD4

     -- Speculative Grade Liquidity Rating, SGL-3

The ratings downgrades reflects Moody's belief that the company
will fall short of expected peak metrics, including EBITDA and
free cash flow generation, in 2006 and hence its through-the-cycle
average metrics are not sufficient to support a Ba2 rating.
Although NOVA's Olefin business generated a record $255 million of
EBITDA (not including $17 million of unrecognized hedging losses)
during the quarter, largely due to the unprecedented feedstock
differential versus Gulf Coast producers, the consolidated EBITDA
failed to exceed $200 million and the company was free cash flow
negative by more than $100 million. As a result, the company's
balance sheet debt and usage under the accounts receivable
facility increased above $2.25 billion for the first time in five
years.

At this point in the cycle, Moody's does not believe that debt
should be approaching near record levels, given the potential
future volatility in earnings. Additionally, when using Moody's
Chemical Industry Rating Methodology, the company's metrics map to
a very weak "Ba" rating.  

The negative outlook reflects uncertainties over NOVA's future
financial performance given the anticipated downturn in the
ethylene and polyethylene margins over the next several years and
its ability to generate financial metrics that solidly support the
Ba3 corporate family rating with its current debt load.  The key
ratings drivers are Financial Strength, Management Strategy and
Business Profile.  If NOVA is unable to keep EBITDA above $450-500
million per year and reduce debt by over $300 million during the
next two years, Moody's could reassess the appropriateness of the
company's Ba3 corporate family rating.

Nova Chemicals Company is headquartered in Calgary, Alberta,
Canada and is a leading producer of ethylene, polyethylene,
styrene, polystyrene, and expanded polystyrene.  NOVA reported
revenues of $6.3 billion for the last twelve months ending
September 30, 2006.


O&M STAR: S&P Rates $278 Million Senior Secured Loan at BB
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' senior
secured debt rating and '2' recovery rating to O&M Star Generation
LLC's $278 million senior secured credit facility due 2014.  The
outlook is stable.

The '2' recovery rating indicates the expectation for substantial
recovery of principal (80%-100%) in the event of payment default.

The facility consists of a $259 million senior secured term loan
and $19 million prefunded letter of credit facility.

O&M Star was formed to acquire equity stakes in and debt
obligations of Orange Cogeneration L.P. and Polk Power Partner
L.P. (Mulberry), which each own power plants that are qualifying
facilities near Bartow, Florida.

"The stable outlook on O&M Star's loans is driven by strong
contractual revenue and a good operating history," said Standard &
Poor's credit analyst Daniel Welt.


OMNOVA SOLUTIONS: Good Performance Prompts S&P to Upgrade Ratings
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
performance chemicals and decorative products manufacturer OMNOVA
Solutions Inc.  The corporate credit rating was raised to 'B+'
from 'B'.  The outlook is stable.

"The upgrade acknowledges OMNOVA's improving operating
performance, the strengthening of the financial profile, and the
potential for additional debt reduction following the September
2006 sale of the GenFlex Building Products business," said
Standard & Poor's credit analyst David Bird.

OMNOVA sold GenFlex to Firestone Building Products Co. for
approximately $40 million.  Based on management's commitment to
improving the financial profile, S&P expects the company to use
the majority of the proceeds from the sale to reduce debt.

The ratings reflect OMNOVA's vulnerable business position as a
niche provider of emulsion polymers, specialty chemicals, and
decorative products to mature and highly competitive markets.  The
ratings also reflect OMNOVA's exposure to volatile raw-material
costs, many of which are derived from oil and natural gas, and its
highly aggressive financial profile.  These attributes are only
partially offset by competitive business positions as the No. 1 or
No. 2 supplier in each of its key end markets and moderate product
diversification.  OMNOVA generated approximately $698 million in
revenues over the past 12 months ended Aug. 31, 2006 (pro forma
for the sale of the GenFlex business).  Also on that date, the
company maintained approximately $203 million of total debt
(adjusted to capitalize operating leases) outstanding, excluding
any improvements in the capital structure from the proceeds
generated by the sale.


OPEN TEXT: Mulls Streamlining of Employees and Facilities
---------------------------------------------------------
Open Text Corporation will release financial results for its first
quarter of fiscal 2007 on Monday, Nov. 6, 2006 at approximately
4:00 p.m. Easter Time.

For the quarter ended Sept. 30, 2006, the Company expects to
report revenue of between $99 million and $101 million.

As reported in the Troubled Company Reporter on Oct. 17, 2006
Open Text, through its wholly owned subsidiary 6575064 Canada
Inc., acquired all of the issued and outstanding common shares of
Hummingbird at a cash price of $27.85 per common share which,
together with the 764,850 common shares of Hummingbird owned by
Open Text prior to the transaction, represent all of the issued
and outstanding shares of Hummingbird.  The transaction is valued
at approximately $489 million.

John Shackleton, president and chief executive officer, commented
on the Company's restructuring.

"As part of the integration of Hummingbird into Open Text, we are
examining global operations to ensure we leverage the best assets
of both companies," Mr. Shackleton said.  "Streamlining employees
and facilities of both Hummingbird and Open Text is necessary to
fully capitalize on the economies of scale and synergies that are
available from this integration."

Headquartered in Waterloo, Ontario, Open Text Corporation
(NASDAQ:OTEX, TSX:OTC) -- http://www.opentext.com/-- provides  
Enterprise Content Management solutions that bring together
people, processes and information in global organizations.  The
company supports approximately 20 million seats across 13,000
deployments in 114 countries and 12 languages worldwide.

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 18, 2006,
Moody's Investors Service assigns a first-time Ba3 rating to the
senior secured facilities and B1 rating to the corporate family of
Open Text Corp., a leading provider of enterprise content
management software.  The ratings reflect both the overall
probability of default of the company, to which Moody's assigns a
PDR of B2, and a loss-given-default of LGD-2 for the senior
secured facilities.  Moody's also assigned a SGL-1 speculative
grade liquidity rating, reflecting very good liquidity.  The
ratings outlook is stable.


PEABODY 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 North American Metals & Mining sectors, the
rating agency confirmed its Ba1 Corporate Family Rating for
Peabody Energy Corporation.

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
   ----------           -------  -------  ------   ----------
   $1.8 Billion
   Guaranteed
   Senior Unsecured
   Revolving Facility
   due 2011               Ba1      Ba1     LGD4       52%

   $943 Million
   Guaranteed
   Senior Unsecured
   Term Loan A
   due 2011               Ba1      Ba1     LGD4       52%

   $650 Million
   6.875% Guaranteed
   Senior Unsecured
   Notes due 2013         Ba1      Ba1     LGD4       52%

   $240 Million
   5.875% Guaranteed
   Senior Unsecured
   Notes due 2016         Ba1      Ba1     LGD4       52%

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 St. Louis, Missouri, Peabody Energy Corp.
-- http://www.peabodyenergy.com/-- is a private-sector coal  
company, with 2005 sales of 240 million tons of coal and $4.6
billion in revenues.  Its coal products fuel 10% of all U.S. and
3% of worldwide electricity.


PETCO ANIMAL: Moody's Affirms Ba3 Rating on $700MM Secured Loan
---------------------------------------------------------------
Moody's Investors Service affirmed the $700 million secured term
loan of PETCO Animal Supplies Inc at Ba3, the corporate family
rating at B2, and the default probability rating at B2.  The Loss
Given Default rating for the senior secured term loan was lowered
to LGD 3, 32% from LGD 2, 29%.  The rating for the secured term
loan reflects both the overall probability of default of the
company and a loss given default assessment of LGD 3 for the
secured term loan.  Proceeds from the new debt, together with an
incremental equity investment from the new owners Leonard Green
and Texas Pacific, will be used to finance the leverage buyout of
PETCO for total consideration of about $1.9 billion.  

Relative to the prior capital structure that was rated on
September 26, the term loan was upsized to $700 million from $650
million and the subordinated mezzanine notes were downsized to
$450 million from $500 million.  Moody's does not rate a proposed
$200 million secured revolving credit facility or the proposed
$450 million subordinated mezzanine notes.  The rating on the
existing $89 million issue of 10.75% senior subordinated notes
(2011) remains under review and will be withdrawn following
completion of this transaction.  

The rating outlook is stable.

These are the rating actions:

   -- $700 million senior secured term loan at Ba3 (LGD 3, 32%);
   -- Probability-of-default rating at B2;
   -- Corporate family rating at B2.

The corporate family rating of B2 balances important credit
metrics with key qualitative considerations. The weak post-
transaction balance sheet, in which credit metrics such as
leverage, fixed charge coverage, and free cash flow will have B or
Caa characteristics, constrain the ratings.  Also limiting the
rating with a B attribute is the company's financial policy in
which PETCO is expected to continue substantially investing in
store count growth, after the marked reduction of financial
flexibility resulting from the LBO.  

While recognizing the limited cyclicality and seasonality for
sales of pet care goods and services versus many other specialty
retailing products, the meaningful deceleration in sales growth
during the 2nd half of calendar 2005 restricts Moody's opinion of
execution and competitive risks to low investment grade or high
non-investment grade.

The stable outlook anticipates that the company will steadily grow
revenue and cash flow, and modestly improve credit metrics. The
outlook also considers Moody's expectation that the company's
policy with respect to uses of discretionary cash flow will be
measured and, if operating results fall below plan, the company
will maintain solid liquidity through moderation of planned growth
capital investment.  Ratings could eventually move upward if the
company continues the historical pattern of consistent sales
growth at new and existing stores; and if financial flexibility
sustainably strengthens such that EBIT coverage of interest
expense approaches 1.5 times, leverage falls toward 5.5 times, and
Free Cash to Debt approaches 5% on a sustainable basis.  A
permanent decline in revolving credit facility availability, a
slowdown in the growth pace for pet care spending, or an
aggressive financial policy action could cause the ratings to be
lowered.  Specifically, ratings would have to be lowered if
operating performance falters such that debt to EBITDA is
permanently above 7 times, EBIT to interest expense falls below 1
time, or free cash flow to debt does not become meaningfully
positive.  All credit ratios capitalize operating leases per
Moody's standard analytical adjustments.

Moody's has applied its new Probability-of-Default and Loss-Given-
Default rating methodology to PETCO.  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 disaggregates
these two key assessments in long-term ratings.  The LGD rating
methodology also enhances the consistency in Moody's notching
practices across industries and improves the transparency and
accuracy of our ratings as our 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%).

PETCO Animal Supplies, Inc, with headquarters in San Diego,
California, is a specialty retailer of premium supplies, food, and
services for household pets.  The company currently operates 817
stores in 49 states.  Revenue for the twelve months ending July
29, 2006 was about $2.1 billion.


PHARMANET DEVELOPMENT: Launches Sale-Leaseback of Quebec Facility
-----------------------------------------------------------------
PharmaNet Development Group Inc. disclosed the sale-leaseback of
its future Quebec City facility that is currently under
construction.  The leaseback shall commence June 1, 2007.

"The completion of the sale-leaseback agreement was an important
element of our financial strategy," commented John P. Hamill,
executive vice president and chief financial officer.  "The
proceeds will further strengthen our cash position."

The new facility has been sold to a Canadian investor for
approximately $11.2 million Canadian dollars.  The proceeds from
the sale effectively reimburse the Company for substantially all
of the cash outlays it has made on the new facility.

"The new facility, which will meet the specific requirements of
the business, will enhance operational efficiency while providing
space for potential future expansions," added Marc LeBel,
executive vice president bioanalytical laboratories and
president and chief executive officer, Anapharm.

The new facility will house the headquarters of the Company's
Anapharm subsidiary, including all of the bioanalytical and
clinical operations and administrative offices currently in the
Company's two existing facilities located in Quebec City.  The
building and leasehold improvements are expected to be completed
in the first quarter of 2007.  The orderly transfer of operations
to the new facility is expected to be completed in the second
quarter 2007.

Based in Princeton, New Jersey, SFBC International, Inc. (NASDAQ:
SFCC) -- http://www.sfbci.com/and http://www.pharmanet.com-- is  
an international drug development services company offering a
comprehensive range of clinical development, clinical and
bioanalytical laboratory, and consulting services to the branded
pharmaceutical, biotechnology, generic drug and medical device
industries.  SFBC has more than 35 offices, facilities and
laboratories with approximately 2,500 employees strategically
located throughout the world.

                          *     *     *

As reported in the Troubled Company Reporter on May 22, 2006,
Standard & Poor's Ratings Services held its ratings on Princeton,
New Jersey-based contract research services provider SFBC
International Inc., including the 'B+' corporate credit rating,
under CreditWatch with negative implications, where they were
placed on May 11, 2006.


PINE VALLEY: Granted Creditor Protection Under CCAA
---------------------------------------------------
The British Columbia Supreme Court granted an order in favor of
Pine Valley Mining Corporation under the Companies' Creditors
Arrangement Act (Canada).  Initially, the Order will be effective
for a period ending Nov. 15, 2006, during which time creditors and
other third parties are stayed from terminating agreements with
Pine Valley or otherwise taking steps against Pine Valley.  The
purpose of obtaining the Order is to afford Pine Valley an
opportunity to preserve the going concern value of its assets as
it assesses its alternatives, including the possible sale of the
company, to satisfy creditors and preserve shareholder value.  
Ernst & Young LLP has been appointed by the Court as the Monitor
in the CCAA proceedings.

The Company also reports that, as a consequence of the Company's
financial circumstances underlying its decision to seek the Order,
the Toronto Stock Exchange has suspended trading in the Company's
shares as of 2:01 p.m. (Vancouver Time) on Oct. 20, 2006.  The
Exchange has further advised the Company that its shares will be
delisted from the Exchange effective Nov. 17, 2006 unless, before
that deadline, the Company remedies all of the conditions which
resulted in the suspension and demonstrates to the Exchange's
satisfaction that the Company meets all of the Exchange's
requirements for an original listing.  Notwithstanding the
Exchange's decision, the effective time of the delisting will
likely remain suspended if the effective period of the Order is
extended beyond Nov. 17, 2006.  The Company expects that its
shares will continue to be traded in the United States on the OTC
Bulletin Board.

Pine Valley Mining Corporation (TSX:PVM.TO)(OTC BB:PVMCF.OB) --
http://www.pinevalleycoal.com/-- a publicly owned corporation,  
operates the Willow Creek Mine which has a large supply of good
quality PCI and metallurgical coal reserves in British Columbia.  
The Company has now completed construction of its infrastructure
at Willow Creek and has been making commercial coal shipments
since September 2004.


PINNOAK RESOURCES: 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 North American Metals & Mining sectors, the
rating agency confirmed its Caa1 Corporate Family Rating for
Pinnoak Resources, LLC.

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
   ----------           -------  -------  ------   ----------
   $50 Million
   Revolving Facility
   due 2011               B3       B3      LGD3       32%

   $125 Million
   Term Loan
   Facility due 2011      B3       B3      LGD3       32%

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 Canonsburg, Pennsylvania, PinnOak Resources, LLC, is
engaged in the mining and marketing of met coal.


PNA 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 North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for PNA
Group, Inc., and its B3 rating on the Company's $250 million issue
of 10.75% guaranteed senior unsecured global notes.  Moody's also
assigned an LGD5 rating to those loans, suggesting noteholders
will experience a 79% 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 Atlanta, Georgia, PNA Group, Inc., operates 22 steel
service centers throughout the US.  In 2005, pro forma for the
June 2006 acquisition of Metals Supply Company, Ltd., it had sales
of $1.36 billion.


PRIMARIS RETAIL: DBRS Holds Issuer Rating at BB with Stable Trend
-----------------------------------------------------------------
Dominion Bond Rating Service confirmed Primaris Retail Real Estate
Investment Trust's Issuer Rating at BB with a Stable trend.

Primaris' significantly improved size and scale over the past year
-- combined with solid underlying fundamentals exhibited by its
shopping centre portfolio, including same store growth in NOI
driven by higher average net rents on renewal -- should enhance
overall stability in cash flow. Although Primaris's credit profile
has strengthened, the rating confirmation reflects its relative
size, property concentration and tenant risk -- including exposure
to the Hudson's Bay Co. and Sears Canada -- compared with its
peers.

The rating reflects these:

   (1) Over the past 18 months, Primaris has more than doubled
       its retail portfolio from nine to 20 properties, with
       leasable area increasing by 70% to 7.8 million square
       feet.  This growth has enhanced geographic diversification
       by adding new markets in Quebec and Manitoba, as well as
       expanding its presence in Ontario.  However, Primaris
       continues to have concentration in relatively few
       properties at 20, compared with most other REITs.  The
       concentration risk is offset somewhat by the diversity of
       tenants and that many of its properties are the dominant
       enclosed mall in their respective markets.

   (2) Although there is strong competition in the retail space
       including new-format centres, Primaris's enclosed malls
       continue to benefit from a strong retail environment in
       Canada, achieving same-store sales growth since its
       inception in 2003.  As well, same-property NOI grew 5.8%
       in 2005 and 1.1% to June 30 in 2006, with growth recently
       slowing from the temporary loss of anchor tenant income at
       two properties, which are being reconfigured to
       accommodate new tenants. Once the reconfigurations are
       completed, Primaris expects to generate higher rental
       income from a more diverse tenant base.

   (3) Primaris continues to prudently manage its balance sheet
       with debt-to-gross book value of 52% and EBITDA interest
       coverage of 2.8x for the first six months of 2006,
       above the average REIT rated by DBRS.  Its payout ratio
       remains reasonable at 85% of cash flow from operations and
       less than 100% of cash available for distribution for the
       LTM to June 30, 2006.

One of the major challenges is the exposure to the Bay, Zellers
and Sears, which are anchors at a majority of its shopping centres
representing 10% of rental income and 32% of total leasable area.  
Primaris's mid-market shopping centres could be susceptible to the
loss of one of these anchors resulting in disruption to property
performance.  DBRS notes that Primaris has had success in re-
leasing space vacated by anchor tenants; however, this often
requires substantial investment and results in temporary loss of
income.

Notwithstanding this concern, the Primaris portfolio comprises
generally well-located properties that should attract new tenants,
as illustrated by a relatively high occupancy level of 96.8%.
Looking ahead, Primaris will focus in 2006 and 2007 on reinvesting
in existing properties while considering opportunistic
acquisitions, which may include further acquisitions of unenclosed
retail malls.


PRIME AMERICAN: Case Summary & 33 Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: Prime American Hotels, LLC
             118 U.S. Highway 206 South
             Hillsborough, NJ 08844

Bankruptcy Case No.: 06-20260

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Prime American Hotel Management, Inc.      06-20262

Type of Business: The Debtor operates a hotel.
                  http://www.daysinnhillsborough.com/

Chapter 11 Petition Date: October 20, 2006

Court: District of New Jersey (Trenton)

Judge: Michael B. Kaplan

Debtor's Counsel: Steven Z. Jurista, Esq.
                  Wasserman, Jurista & Stolz
                  225 Millburn Ave., Suite 207
                  P.O. Box 1029
                  Millburn, NJ 07041
                  Tel: (973) 467-2700
                  Fax: (973) 467-8126

                            Estimated Assets   Estimated Debts
                            ----------------   ---------------
Prime American Hotels, LLC  $1 Million to      $1 Million to
                            $100 Million       $100 Million
Prime American Hotel        $0 to $50,000      $1 Million to
Management, Inc.                               $100 Million

A. Prime American Hotels, LLC's 13 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Prime American Hotel          Loan                      $177,608
Management, Inc.
118 Route 206
Hillsborough, NJ 08844

Commerce Commercial Leasing   Lease                     $100,000
9000 Atrium Way
Mount Laurel, NJ 08054

Umeshkumar K. Matta           Loan by shareholder        $96,050
5 Lench Avenue
Edison, NJ 08820

Rachna Shadadpuri             Loan by shareholder        $50,000
2 Woods Lane
Old Westbury, NY 11568

Commerce Commercial Leasing   Lease                      $37,524
9000 Atrium Way
Mount Laurel, NJ 08054

TCF Express Leasing           Lease                      $32,643
11100 Wayzata Blvd, #801
Hopkins, MN 55305

Balboa Capital                Lease                      $37,000
2010 Main Street, Suite 1150
Irvine, CA 92614

Michael M. Stadler            Trade debt                 $15,648
90 Woodbridge Center Drive,
Suite 150
Woodbridge, NJ 07095

Mercantile International, NA  Trade debt                 $15,000
140 Ethel Road West, Unit M.
Piscataway, NJ 08854

Hillsborough Municipal        Utility services           $10,547
Utilities Auth.
P.O. Box 5909
Hillsborough, NJ 08844

Imperial A.I. Credit          Trade debt                  $1,806
Companies, Inc.
101 Hudson Street
Jersey City, NJ 07302

NJ Depart of Community        Trade debt                    $292
Affairs
Elevator Safety Unit
P.O. Box 816
Trenton, NJ 08625

Hartford Steam Boilder        Business debt                  $90
Attn: Certificate Fees
Billing
P.O. Box 61509
King Of Prussia, PA 19406

B. Prime American Hotel Management, Inc.'s 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Zions First National Bank     Guaranty on loan        $2,590,000
10 East South Temple Street
P.O. Box 30709
Salt Lake City, UT 84130

Unity Bank                    Guaranty on Loan        $1,702,137
64 Old Highway 22
Clinton, NJ 08809

New Jersey Sales & Use Tax    Sales tax                 $180,000
P.O. Box 269
Trenton, NJ 08695

Days Inn World Wide, Inc.     Trade debt                 $93,961
1 Sylvan Way
Parsippany, NJ 07054

Rajesh Matta                  Unpaid wages               $46,464
29 Melbloum Lane
Edison, NJ 08837

Manoo Matta                   Unpaid wages               $32,553
29 Melbloum Lane
Edison, NJ 08837

Umeskumar Matta               Unpaid wages               $27,638
5 Lench Avenue
Edison, NJ 08820

PSE&G                         Utility services           $26,839
P.O. Box 14444
New Brunswick, NJ 08906

Advanta Card                  Credit card                $20,195
P.O. Box 30715                purchases
Salt Lake City, UT 84130

Elizabethtown Water Co.       Utilities                  $15,236
dba New JErsey American
Water
P.O. Box 371350
Pittsburgh, PA 15250

Chase Card                    Credit card                $13,536
Cardmember Services           purchases
P.O. Box 15153
Wilmington, DE 19886

Bank of American Corp. Card   Credit card                 $8,191
P.O. Box 60073                purchases
City Of Industry, CA 91716

Citi Business Card            Credit card                 $5,969
P.O. Box 6309                 purchases
The Lakes, NV 88901

American Hotel Register       Trade debt                  $5,396
100 S. Milwaukee Avenue
Vernon Hills, IL 60061

World Cinema, Inc.            Trade debt                  $5,392
Westchare Bank Bldg., Suite
409
Houston, TX 77042

AVM Enterprises, Inc.         Trade debt                  $4,295
P.O. Box 22283
Chattanooga, TN 37422

Pandya, Kapadia & Associates  Professional                $3,600
CPA PA                        services
50 Cragwood Road, Suite 205
South Plainfield, NJ 07080

New Jersey Logos, LLC         Trade debt                  $3,200
1230 Parkway Avenue, Suite
100
Trenton, NJ 08628

BNY Leasing Edge              Trade debt                  $2,608
Ref. No. 24527552
1111 Old Eagle School Road
Wayne, PA 19087

Verizon                       Telephone services          $2,517
P.O. Box 4833
Trenton, NJ 08650


RADNOR HOLDINGS: Blocks Panel's Move to Extend Bidding Process
--------------------------------------------------------------
Radnor Holdings Corporation and its debtor-affiliates oppose the
Official Committee of Unsecured Creditors' motion to amend bidding
procedures governing the sale of substantially all of their
assets.  The Debtors say the Committee's extension motion will
place them in default under the terms of their debtor-in-
possession financing agreement.   

As reported in the Troubled Company Reporter on Oct. 5, 2006, the
Court has scheduled a Nov. 20 auction for the assets.  TR
Acquisition Company, Inc., an affiliate of Tennenbaum Capital
Partners, LLC, the Debtors' prepetition term loan agent, will be
offering the face amount of its claim as a substitute for some of
the cash at the auction.  TR Acquisition has been designated as
the "stalking horse bidder" under an agreement previously entered
into with the Debtors.  

Under the approved bid procedures, other bidders have until Nov.
16, 2006 to challenge Tennenbaum's "stalking-horse" status.  The
Committee wants the Court to move the "stalking horse" bid
deadline to Nov. 20, 2006 and set Nov. 21, 2006, as the "stalking
horse" selection date.  The Committee further asks the Court to
extend the remaining dates in the Bid Procedures by approximately
30 days.

                      Committee's Reasons

Victoria W. Counihan, Esq., at Greenberg Traurig, LLP, told the
Court the Committee remains convinced that the sale process is
nothing more than a scheme to transfer the Debtors' assets to
Tennenbaum, who is a prepetition lender, a shareholder and insider
of the Debtors.

According to Ms. Counihan, the Committee agreed to the bid
procedures on the premise that it would provide a level playing
field for bidders to participate and would be structured so as not
to shut out a restructuring plan or other internal reorganization
to the extent one was viable.

However, the Committee accuses the Debtors of engaging in
activities that effectively freeze potential bidders out of the
auction and bar the Committee from developing its own
reorganization strategy.  The Committee says, the proposed
revision of the bid process will allow other bidders to
participate and give them sufficient time to formulate an
alternative reorganization plan.

                       Debtors' Response

The Debtors discount the Committee's allegations.  According to
the Debtors,  the committee's motion seeks to enjoin TR
Acquisition from exercising its rights as permitted by the bid
procedures and is a collateral attack on the final DIP financing
order.

The Debtors remind the court that a failure to proceed with an
auction on Nov. 20, 2006 would constitute a default on the DIP
financing agreement, triggering termination of the DIP agreement
on Dec. 1, 2006.

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.  Victoria Watson Counihan, Esq., at
Greenberg Traurig, LLP, represents the Official Committee of
Unsecured Creditors.  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 PAYROLL: Court Approves Robinson Diamant as General Counsel
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
gave Rapid Payroll Inc. permission to employ Robinson, Diamant &
Wolkowitz as its general bankruptcy counsel.

As reported on the Troubled Company Reporter on July 13, 2006,
Robinson Diamant is expected to:

   a) provide legal advice and guidance with respect to the
      powers, duties, rights and obligations of a debtor-in-
      possession; and

   b) assist the Debtor in the preparation of a plan of
      reorganization, a disclosure statement for that Plan, and
      all necessary legal documents.

The Debtor and Robinson Diamant have agreed that $200,000 of the
retainer paid to the Debtor's special litigation counsel, Irell &
Manella LLP, will be transferred to Robinson Diamant's trust
account.  The Firm will draw against the retainer according to
authorized procedures, after filing and serving statements of
professional fees.

To the best of the Debtor's knowledge, Robinson Diamant does not
hold any interest adverse to the estate and is "disinterested" as
that term is defined in Sec. 101(14) of the Bankruptcy Code.

Headquartered in Orange, California, Rapid Payroll Inc. fka Olsen
Computer Systems, was in the business of licensing payroll
processing software called Rapidpay and providing maintenance,
support and updates for the software to its licensees.  The
Company was later acquired in November 1996 by Paychex, Inc.
Rapid Payroll filed for chapter 11 protection on May 4, 2006
(Bankr. C.D. Calif. Case No. 06-10631).  On June 28, 2006, the
Court authorized the Debtor to hire the firm of Irell & Manella
LLP as its special litigation counsel through and including August
31, 2006.  The Official Committee of Unsecured Creditors has
selected Marc J. Winthrop, Esq. in Newport Beach, California as
its counsel.  When the Debtor filed for protection from its
creditors, it estimated assets between $1 million and $10 million
and estimated debts between $10 million and $50 million.


REGAL CINEMAS: S&P Rates $1.8 Billion Secured bank Loan at BB-
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its bank loan and
recovery ratings to the $1.8 billion senior secured bank facility
of Regal Cinemas Corp. (BB-/Negative/--), operating subsidiary of
Regal Entertainment Group (BB-/Negative/--), following Regal
Cinemas' announcement that it will be amending and restating its
facility and increasing the term loan to $1.7 billion, from $1.69
billion.  The secured bank loan rating is 'BB-' (at the same level
as the corporate credit ratings on the companies), with a recovery
rating of '3', indicating the expectation for meaningful (50%-80%)
recovery of principal in the event of a payment default.

Proceeds from the facility will be used to refinance the existing
senior secured bank facility and to pay fees and expenses.  The
transaction will extend the maturities of the term loan and
revolving credit facility.  Also, Regal Cinemas will be increasing
its uncommitted greenshoe availability to $200 million from
$100 million to fund potential conversion of existing holding
company bonds, which the company may settle in cash rather than by
issuing stock.  At closing, the company's facilities will consist
of a $1.7 billion term loan due 2013 and a $100 million revolving
credit facility due 2011.

Ratings List

Ratings Affirmed

Regal Cinemas Corp.

Corporate credit rating                     BB-/Negative/--

New Rating

Regal Cinemas Corp.

Senior Secured

  Local Currency

   $1.7 Billion Term Loan B                  BB-
    Recovery Rating                          3
   $100 Million Revolving Credit Facility    BB-
    Recovery Rating                          3


REGAL CINEMAS: Moody's Affirms B2 Rating on Sr. Unsecured Debt
--------------------------------------------------------------
Moody's Investors Service affirmed the Ba3 corporate family rating
for Regal Entertainment Group and assigned a Ba2 rating to the
proposed amended senior secured bank credit facility of Regal
Cinemas Corporation.  The proposed amendment modestly enhances
liquidity by extending the maturity of the revolving credit
facility to 2011 from 2009 and the term loan to 2013 from 2010, as
well as providing incremental bank capacity.  Regal could access
this single purpose incremental bank capacity only to repay the
convertible notes maturing in 2008.

Moody's affirmed all other ratings and the outlook remains stable.  
Given the uncertainty as to whether Regal will access the
incremental bank capacity to repay bonds, Moody's will not
materially revise Regal's liability waterfall for the Loss Given
Default methodology at this time.

These are the rating actions:

   Regal Entertainment Group:

     -- Affirmed Ba3 Corporate Family Rating

     -- Affirmed Ba3 Probability of Default Rating

     -- Affirmed B2 Rating on Senior Unsecured Convertibles, LGD
        6, 95%

   Regal Cinemas Corporation

     -- Assigned Ba2 Senior Secured Bank Rating, LGD 3, 40%

Regal's corporate family rating reflects high leverage of
approximately 5.4 times debt-to-EBITDA and Moody's expectations
that dividends will continue to consume much of Regal's free cash
flow.   Furthermore, like all theater operators, Regal operates in
a mature industry with low to negative growth potential, high
fixed costs and increasing competition from alternative media, and
the company remains vulnerable to the studios' ability to create
product that will drive attendance.

As the largest domestic operator, however, Regal benefits from
scale and geographic diversity.  Although Moody's believes that
management will continue to direct free cash flow to shareholders
or acquisitions rather than repaying debt, the flexibility
afforded by this positive free cash flow supports the ratings.  
Furthermore, the National CineMedia joint venture provides some
incremental, higher margin EBITDA that helps offset industry
maturity and attendance volatility.

With NCM's proposed initial public offering, Moody's expects:

   -- Regal will receive cash proceeds from the transaction;

   -- will continue to derive some cash flow from the entity;
      and,

   -- will maintain an ownership stake.

Regal's credit agreement does not require it to apply proceeds to
debt reduction, and Moody's will evaluate the ratings impact of
the proposed NCM transaction, if any, once Regal has disclosed its
intentions for the use of proceeds.

Regal Entertainment Group is the parent company of Regal Cinemas
and its subsidiaries.  Regal operates the largest theater circuit
in the United States, consisting of approximately 6,400 screens in
550 theaters in 40 states.  The company maintains its headquarters
in Knoxville, Tennessee.


RICHARD BRYANT: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Richard Bryant Itkin
        318 Westminster Road
        Brooklyn, NY 11218

Bankruptcy Case No.: 06-43923

Type of Business: The Debtor is engaged in a real estate holding
                  industry.

Chapter 11 Petition Date: October 19, 2006

Court: Eastern District of New York (Brooklyn)

Debtor's Counsel: Joel M. Shafferman, Esq.
                  The Law Offices of Joel Shafferman, LLC
                  80 Wall Street, Suite 910
                  New York, NY 10005
                  Tel: (212) 509-1802
                  Fax: (212) 509-1831

Total Assets: $1,206,638

Total Debts:  $438,095

Debtor's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Sallie Mae Servicing          Student Loans              $24,650
P.O. Box 9500
Wilkes Barre, PA 18773

Capital One Bank              Credit Card                 $5,453
P.O. Box 70884
Charlotte, NC 28272

American Express              Credit Card                 $3,500
P.O. Box 360002
Fort Lauderdale, FL 33336

Washington Mutual             Credit Card                 $4,200
P.O. Box 3139
Milwaukee, WI 53201

Sears Mastercard Citibank     Credit Card                 $2,671
P.O. Box 6922
The Lakes, NV 88901

American Express              Credit Card                 $2,616
PO Box 360002
Fort Lauderdale, FL 33336

Dell Preferred Account        Credit Card                 $2,000
P.O. Box 6403
Carol Stream, IL 60197

Macy's                        Credit Card                 $1,559
P.O. Box 183083
Columbus, OH 43218

Keyspan                       Utility                     $1,500
1 MetroTech Center
Brooklyn, NY 11201

Wells Fargo                   Credit Card                 $1,252
2363 Ralph Avenue
Brooklyn, NY 11234

Washington Mutual             Credit Card                 $1,225
P.O. Box 3139
Milwaukee, WI 53201

American Express              Credit Card                 $1,091
P.O. Box 2855
New York, NY 10116

Universal Fidelity LP         Credit Card                 $1,006
1445 Langham Creek Drive
Houston, TX 77084

Bally Total Fitness           Fitness Club                  $968
8700 Bryn Mawr Avenue
Chicago, IL 60631

Citi Card                     Credit Card                   $832
P.O. Box 6500
Sioux Falls, SD 57117

Care Credit/GEMB              Credit Card                   $770
P.O Box 960061
Orlando, FL 32896

Merrick Bank (Chase)          Credit Card                   $658
P.O Box 5721
Hicksville, NY 11802

Bank of America               Credit Card                   $527
P.O. Box 1758
Newark, NJ 07101

Capital One Bank              Credit Card                   $498
P.O. Box 70884
Charlotte, NC 28272

HSBC NV                       Credit Card                   $436
P.O. Box 60102
City Of Industry, CA 91716


ROC PREF: S&P Places Preferred Shares on CreditWatch
----------------------------------------------------
ROC Pref III Corp. reported that its preferred shares have been
placed on CreditWatch with negative implications.  The move comes
as a result of the downgrades of Quebecor World Inc. and Tribune
Company during September.

The rating on the company's preferred shares reflects the rating
on the CDN$263,860,000 fixed-rate managed credit linked note
issued by The Toronto-Dominion Bank.  The return on the CLN, and
thus on the preferred shares, is linked to the credit performance
of a portfolio of 125 companies.  The Reference Portfolio is
actively managed by Connor, Clark & Lunn Investment Management.

The Investment Manager has executed trades in the Reference
Portfolio which are expected to have the effect of removing the
CLN, and thus the preferred shares, from Credit Watch on S&P's
next weekly review of the CLN.  Barring unexpected changes to the
credit quality of the reference portfolio, the Investment Manager
does not expect a downgrade of the CLN or the preferred shares at
this time.  The Investment Manager commented that, "In recent
weeks, despite on-going concern regarding certain portfolio
holdings, we have remained confident in the overall portfolio
credit quality. The vast majority of the holdings are performing
well with the trading reserve account sufficient to allow us to
trade defensively should the need arise."

The preferred shares benefit from the protection of a first loss
tranche equal to 3.35% of the Reference Portfolio and from a fixed
recovery rate of 40% on any defaults.  As a result, ROC Pref III
Corp. will be able to sustain 7 or more defaults, which is
approximately 2.5 times the average default rate and 1.5 times the
worst default rate experienced in a portfolio of the same credit
quality as the Reference Portfolio in any 5.5 year period since
1981.

ROC Pref III Corp.'s preferred shares pay a fixed quarterly coupon
of 4.40% on their $25.00 principal value and will mature on March
22, 2012.  The Standard & Poor's rating addresses the likelihood
of full payment of interest and payment of $25.00 principal value
per preferred share on the maturity date.

                         About ROC Pref

ROC Pref III Corp. (TSX:RPB.PR.A) is a mutual fund corporation
that has been created to issue 7 year redeemable, retractable
cumulative P-1 (Low) rated preferred shares.  The company will use
the proceeds to invest, in a tax-efficient manner, in an A- rated
structured note that will offer credit exposure to an equally
weighted portfolio of approximately 115 to 140 investment grade
companies.

                         *     *     *

At June 30, 2006, ROC Pref III Corp.'s balance sheet showed
$418,532,276 in total assets, $418,532,176 in total liabilities,
and $100 in stockholders' equity.


RYERSON 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 North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for Ryerson
Inc., fka Ryerson Tull Inc., and its B3 rating on the Company's
$150 million issue of 8.25% guaranteed senior unsecured global
bonds.  Moody's also assigned an LGD6 rating to those loans,
suggesting noteholders will experience a 91% 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 Chicago, Illinois, Ryerson, Inc., engages in the
distribution and processing of metals and other materials in the
United States, Canada, Mexico, and India.  The company offers
carbon steel, stainless steel, alloy steels and aluminum, and a
limited line of nickel, red metals, and plastics in various
shapes, including coils, sheets, rounds, hexagons, square and flat
bars, plates, structural, and tubing.  The Company sells its
products to machinery manufacturers, fabricated metal products
producers, electrical machinery producers, transportation
equipment producers, construction-related purchasers, wholesale
distributors, and metals mills and foundries. The company was
founded in 1893.  It was formerly known as Ryerson Tull, Inc. and
changed its name to Ryerson, Inc., in January 2006.


SAINT VINCENTS: Inks Stipulation for BAL Lease Assumption
---------------------------------------------------------
Before Saint Vincents Catholic Medical Centers of New York and its
debtor-affiliates filed for bankruptcy, they entered into a Master
Agreement No. 1672 dated June 1, 2000, together with Equipment
Schedule Number 2 to the Master Agreement, and a related
Certificate of Acceptance, with BAL Global Finance LLC.

The BAL Lease grants the Debtors the option to purchase the
equipment covered only by the BAL Lease at the end of its term.

On March 28, 2006, BAL filed Claim No. 2406 related to the BAL
Lease and other agreements with the Debtors, which asserted a
secured claim for $281,643.  The Claim alleges that as of
March 24, the Debtors owed $4,772 in postpetition rents due under
the BAL Lease, plus certain legal fees and expenses.

The Equipment is located at St. Vincent's Hospital in Manhattan.

By exercising the Purchase Option, the Debtors will continue to
provide the Equipment to the hospital's staff and avoid the
disruption and expenses of returning the Equipment to BAL, and
locating and installing replacement equipment at the hospital.

Accordingly, the Debtors and BAL entered into a stipulation
wherein both agreed that:

  1. the Debtors:

     * will assume the BAL Lease to the extent it remains an
       executory contract;

     * are not currently in default of the BAL Lease and have
       satisfied all of the conditions precedent to exercising the
       Purchase Option;

     * may purchase the Equipment from BAL pursuant to a bill of
       sale between the parties for a purchase price of $19,575,
       plus any applicable sales;

  2. upon payment by the Debtors of the Purchase Price other than
     any indemnification or tax payment obligations of the Debtors
     under the BAL Lease, all of the Debtors' obligations to BAL
     as to the Lease will be satisfied;

  3. the BAL Lease will expire in accordance with its terms.  The
     title to all Equipment will then vest in the Debtors on an
     "as is-where is" basis and BAL will have no further rights or
     interest in the Equipment;

  4. upon receipt of payment, BAL will immediately:

     * file a termination statement under the Uniform Commercial
       Code as to all financing statements filed with respect to
       the Equipment;

     * take all necessary steps to release any other lien with
       respect to the Equipment; and

     * amend Claim No. 2406 to reflect that the Debtors have
       satisfied all applicable amounts listed on the proof of
       claim as to the Lease;

  5. the Proof of Claim is disallowed to the extent of the claims
     set forth with respect to the BAL Lease only; and

  6. all parties' rights with respect to the remainder of the
     Proof of Claim are fully preserved.

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


SEARS CANADA: S&P Holds BB+ Rating and Revises Outlook to Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the ratings outlook on
Sears Canada Inc. to stable from negative.

"This action was taken to reflect the strong 70% majority
ownership of Sears Canada by its parent, and therefore to equalize
the outlook with Sears Holdings Corp.," said Standard & Poor's
credit analyst Gerald Hirschberg.  The corporate credit rating for
both entities is unchanged at 'BB+'.

The stable outlook for the consolidated entity reflects our
confidence that Sears Holdings' management is successfully
developing and implementing back-to-basics programs that are aimed
at operational improvements and building a better relationship
with customers.  These have the potential to build revenue and
therefore enhance many of the cost savings from the integration of
Kmart and Sears.

Although a positive outlook is not a near-term prospect, good
success in revenue growth and margin improvement, along with more
clarity on future investment strategies and financial policies,
would be needed for this change.  A reversion to a negative
outlook could come about from poor business conditions, a failure
to re-attract customers, diminished liquidity, and a more
aggressive financial policy.

Upside to the rating is limited by the company's statement that
its chairman, Edward S. Lampert, has the authority to direct
substantial amounts of the company's cash into other investments.  
Standard & Poor's believes that these potential investments may
result in added business and financial risk.  Because investments
may be related or unrelated to the company's core retailing
business, there is potential for heightened business risk.

Furthermore, financial risk may also increase because of potential
changes to the balance sheet, and because these investments may be
made using financial instruments such as derivatives.


SILICON GRAPHICS: Assumes 107 Contracts & Fixes Cure Costs
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
gave Silicon Graphics Inc. and its debtor-affiliates authority to
assume the 107 Contracts and fix the amounts required to cure
them.

Pursuant to their confirmed Plan of Reorganization, the Debtors
will assume on the effective date of the Plan, all executory
contracts and unexpired leases listed on the schedules specified
in the Plan supplements.

As reported in the Troubled Company Reporter on Oct. 5, 2006,
prepetition executory contracts and unexpired leases not listed on
the schedules, previously assumed by the Debtors, or subject to a
request for assumption, will be rejected on the Plan Effective
Date.

A complete list of the 107 Contracts to be assumed is available
for free at http://researcharchives.com/t/s?12ee

Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance  
computing.  SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data.  The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).  Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts.  Judge Lifland confirms the Debtors' Plan
of Reorganization on Sept. 19, 2006.  When the Debtors filed for
protection from their creditors, they listed total assets of
$369,416,815 and total debts of $664,268,602.  (Silicon Graphics
Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SILICON GRAPHICS: Gets Court Approval to Assume Solectron Contract
------------------------------------------------------------------
Silicon Graphics Inc. and its debtor-affiliates obtained authority
from the U.S. Bankruptcy Court for the Southern District of New
York to assume a Contract with Solectron Corporation.

As reported in the Troubled Company Reporter on Oct. 6, 2006, the
Debtors and Solectron are parties to a contract manufacturing
long-term business agreement originally dated as of May 2, 1999.

Pursuant to the Contract, Solectron provides manufacturing
services to the Debtors and the Debtors provide materials to
Solectron to be utilized in connection with the manufacturing.

A full-text copy of the Assumption Termsheet is available for free
at http://researcharchives.com/t/s?12fc

Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance  
computing.  SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data.  The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).  Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts.  Judge Lifland confirms the Debtors' Plan
of Reorganization on Sept. 19, 2006.  When the Debtors filed for
protection from their creditors, they listed total assets of
$369,416,815 and total debts of $664,268,602.  (Silicon Graphics
Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SOLO CUP: Incurs $299 Million Net Loss in 2006 Second Quarter
-------------------------------------------------------------
Solo Cup Company filed its financial statements for the second
quarter ended July 2, 2006, with the Securities and Exchange
Commission on Oct. 16, 2006.

For the second quarter ended July 2, 2006, the Company reported a
$299,364,000 net loss, compared with a $2,787,000 net loss for the
quarter ended July 3, 2005.

Net sales increased $23.4 million, or 3.6%, for the 13 weeks ended
July 2, 2006, compared with the prior year period.  The increase
in net sales reflected a 6.5% increase in average realized sales
price partially offset by a 2.9% decrease in sales volume compared
with the 13 weeks ended July 3, 2005.  

The increase in average realized sales price reflects price
increases implemented during the second half of 2005 and the first
half of 2006 in response to higher raw material costs.  The volume
decrease primarily reflects pricing pressure in the marketplace
and, to a lesser extent, the company's decision to eliminate
certain less profitable business.

Cost of goods sold increased $13.5 million, or 2.4%, for the 13
weeks ended July 2, 2006, compared with the prior year period.  
The increase in cost of goods sold for the 13 weeks ended July 2,
2006, included an additional $9.8 million reserve for spare parts
and inventory obsolescence due to changes in estimation
methodology related to the valuation of these assets. These
increases in cost of goods sold were offset by $22.1 million of
curtailment gains related to negotiated changes in postretirement
benefits for certain active employees.  The remaining increase in
cost of goods sold was a result of increases in raw material and
transportation costs.  The company continues to experience
fluctuations in raw material prices.

For the 13 weeks ended July 2, 2006, gross profit increased
$9.8 million compared with the prior year period.  As a percentage
of net sales, gross profit was 13.7% in the second quarter of 2006
versus 12.7% in the second quarter of 2005.

Excluding the additional $9.8 million reserve for spare parts and
inventory obsolescence and $22.1 million in curtailment gains
related to postretirement benefits, the gross profit percentage
would have been 11.9% for the 13 weeks ended July 2, 2006.

Selling, general, and administrative expenses increased
$7.6 million for the 13 weeks ended July 2, 2006, compared with
the 13 weeks ended July 3, 2005.  The increase was primarily
driven by severance related to its reduction-in-force announced in
April 2006 as well as the departure of certain senior executives.
As a percentage of net sales, selling, general, and administrative
expenses were 11.0% in the second quarter of 2006 versus 10.2% in
the second quarter of 2005.

Impairment of goodwill for the 13 weeks ended July 2, 2006, was
$228.5 million.

For the 13 weeks ended July 2, 2006, interest expense, net,
increased $3.8 million compared with the prior year period.  This
increase is primarily attributable to amounts outstanding under
its Second Lien Facility entered into in March 2006 and higher
outstanding balances under its domestic revolving credit facility.  
To a lesser extent, the increase is due to higher interest rates
compared with the prior year period.

For the 13 weeks ended July 2, 2006, foreign currency exchange
(gain) loss, net, was a gain of $2.7 million compared with a loss
of $2 million for the 13 weeks ended July 3, 2005.  This change is
primarily attributed to currency fluctuations in the United
Kingdom pound sterling denominated inter-company debt.

For the 13 weeks ended July 2, 2006, the income tax provision of
$68.3 million included a $105.0 million income tax charge to
establish a valuation allowance for certain deferred tax assets
partially offset by the tax benefit generated from domestic
operations.

During the 13 weeks ended July 2, 2006, the company prepared an
updated analysis of the recoverability of its deferred tax assets
considering recent developments in its operations and financial
condition, including, among other things, its continued net
losses, and the impact of raw material and petroleum cost
increases on its cost of goods sold.

As a result of these events, and considering the level of
historical taxable income and projections for future taxable
income over the periods in which the deferred tax assets are
deductible, the management concluded that it is more likely than
not that it will not fully realize the benefits of its existing
deductible differences.

Accordingly, the company recorded an additional provision for
income taxes during the second fiscal quarter of 2006 to increase
the valuation allowance for its deferred tax assets by
$105.0 million.

At July 2, 2006, the Company's balance sheet showed $1,619,270,000
in total assets, $1,550,053,000 in total liabilities, and
$69,217,000 in total stockholders' equity.

Full-text copies of the Company's second quarter financials are
available for free at http://ResearchArchives.com/t/s?13cd

                          About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The Company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 20, 2006,
Moody's Investors Service is continuing the review for possible
downgrade of Solo Cup Company's four debt ratings.  Although Solo
Cup has met its obligation to file financial statements and has
completed its previously announced review of accounting issues,
Moody's continues to have concerns regarding liquidity and ongoing
business strategy.


SOLO CUP: Ends Review of Accounting Issues & Restates 2 Financials
------------------------------------------------------------------
Solo Cup Company has completed its review of accounting issues
and, based on that review, has restated some of its previously
issued consolidated financial statements.

The company filed with the Securities and Exchange Commission on
Oct. 16, 2006, two restated financials:

   -- for the year ended Jan. 1, 2006, and
   -- for the first quarter ended April 2, 2006.  

The company has also filed its Form 10-Q for the second quarter
ended July 2, 2006, with the SEC, the filing of which had been
delayed pending completion of the review.

The filing of the second quarter 2006 Form 10-Q has satisfied the
terms of the indenture for the company's 8.5% Senior Subordinated
Notes due 2014.  In addition, on Oct. 13, 2006, the company
concluded its previously announced discussions with its lenders
under its credit facilities and obtained a waiver and amendment
through Jan. 2, 2007, with regard to those facilities.

The company's second-quarter results included:

   -- net sales of $670.3 million, an increase of $23.4 million,
      or 3.6%, from the prior-year quarter, as restated;

   -- gross profit of $92.0 million, up 12% from the prior-year
      quarter, as restated; and

   -- a net loss of $299.4 million, primarily reflecting a
      $228.5 million non-cash charge for the impairment of the
      company's goodwill and a $105.0 million non-cash charge to
      income taxes to establish a valuation allowance for its
      deferred tax assets.

"Two months to the day since we announced the delay in the filing
of our second-quarter results and the launch of our internal
review, we are pleased to report that we have completed the
review, that we have filed our restated consolidated financial
statements and our consolidated financial statements for the
second quarter of 2006, and that we can now focus 100% of our
attention on running the company and building value for our
customers, other business partners, investors and employees,"
Robert M. Korzenski, chief executive officer, said.

"The restatement work was a rigorous and intense process that
revealed certain material weaknesses in our financial controls and
we are taking decisive steps to address those issues," Mr.
Korzenski said.

"Importantly, this work renewed our confidence in the fundamentals
of our business, reaffirmed the compelling strategic, operational
and financial rationale of the Solo Cup/Sweetheart merger, and
highlighted the quality and dedication of our employee team.

"The restatement of our consolidated financial statements has
impacted our reported financial results but the process we have
gone through positions us well for long-term strength and
success," Mr. Korzenski concluded.

Full-text copies of the financial statements are available for
free at:

   For the year ended
   Jan. 1, 2006             http://ResearchArchives.com/t/s?13cc

   For the first quarter
   ended April 2, 2006      http://ResearchArchives.com/t/s?13cb

   For the second quarter
   ended July 2, 2006       http://ResearchArchives.com/t/s?13cd

                          About Solo Cup

Headquartered in Highland Park, Illinois, Solo Cup Company
-- http://www.solocup.com/-- manufactures disposable
foodservice products for the consumer and retail, foodservice,
packaging, and international markets.  Solo Cup has broad
expertise in plastic, paper, and foam disposables and creates
brand name products under the Solo, Sweetheart, Fonda, and
Hoffmaster names.  The Company was established in 1936 and has a
global presence with facilities in Asia, Canada, Europe, Mexico,
Panama and the United States.

                           *     *     *

As reported in the Troubled Company Reporter on Oct. 20, 2006,
Moody's Investors Service is continuing the review for possible
downgrade of Solo Cup Company's four debt ratings.  Although Solo
Cup has met its obligation to file financial statements and has
completed its previously announced review of accounting issues,
Moody's continues to have concerns regarding liquidity and ongoing
business strategy.


SOLO CUP: S&P Cuts Corporate Credit Rating to CCC+ & Removes Watch
------------------------------------------------------------------
Standard & Poor's Ratings Services lowered all its ratings on Solo
Cup Co. by two notches, including its corporate credit rating to
'CCC+', and removed them from CreditWatch where they had been
placed with negative implications on Aug. 18, 2006.  The outlook
is negative.

"The downgrade was prompted by significantly weaker-than-expected
earnings, cash flow, and liquidity as well as concerns about the
company's ability to absorb additional raw material cost
volatility and to obtain further financial covenant relief or
restructure its debt," said Standard & Poor's credit analyst
Cynthia Werneth.  "Based on these factors, we now believe that
meaningful operating and capital structure improvements will have
to be achieved to reduce the risk of a default within the next
year."

Although detailed information on third-quarter performance is not
yet available, on Oct. 16, 2006, Solo's liquidity was
substantially unchanged from June 30, 2006, with cash and unused
bank line availability totaling only $59 million.  Liquidity is
unexpectedly low for this time of year, particularly given that
the company obtained $80 million in new second-lien debt in March
2006.  This leads S&P to conclude that the company generated
little if any operating cash flow in the third quarter, which is
usually a seasonally strong period, after having used about $100
million of cash during the first half of the year.  Because of its
limited liquidity, S&P is concerned about Solo's ability to
continue to shoulder its heavy debt burden and to absorb any
future raw material cost increases, any slowdown in demand, or
other adverse developments.  Also, the company faces higher
interest margin on its bank credit facility in conjunction with a
waiver of financial covenants through year end and will incur
additional costs for an independent review of its supply chain.

Solo may also face near-term refinancing risk if it requires and
is unable to obtain financial covenant relief after expiration of
the current waiver.  S&P is are particularly concerned in view of
Solo's very weak financial profile, its repeated requests for bank
loan waivers and amendments during the past year, and its recent
addition of a tranche of second-lien debt.

The company is very highly leveraged.  As of June 30, 2006, total
debt, adjusted to include about $200 million of capitalized
operating leases and unfunded postretirement obligations on a tax-
effected basis, was nearly $1.4 billion.


SND ELECTRONICS: Wants Atwell Curtis as Collection Agent
--------------------------------------------------------
SND Electronics Inc. asks the Honorable Albert S. Dabrowski of the
U.S. Bankruptcy Court for the District of Connecticut in New Haven
for authority to employ University Management Associates &
Consultants Corp./Atwell, Curtis & Brooks Ltd. as its collection
agent.

Atwell will assist in the collection of accounts receivable of the
Debtor

Arlene M. Angelilli, the president of Atwell, disclosed that the
Firm agreed to accept a:

   -- 25% contingency fee from any cash collected before
      commencement of a litigation; and

   -- 35% fee from any cash collected after commencement of
      litigation.  This fee includes the legal fess and costs,
      exclusive of court costs.

Ms. Angelilli assures the Court that the Firm does not hold or
represent any interest adverse to the Debtor and is disinterested
pursuant to Section 101(14) of the Bankruptcy Court.

Headquartered in Greenwich, Conn., SND Electronics, Inc. --
http://www.snd.com/-- distributes electronic equipment for
computer and communications products.  The company filed for
chapter 11 protection on Mar. 9, 2006 (Bankr. D. Conn. Case No.
06-30286).  Douglas S. Skalka, Esq., at Neubert, Pepe, and
Monteith, P.C., represents the Debtor in its restructuring
efforts.  As of Feb. 24, 2006, the Debtor reported assets totaling
$10,323,554 and debts totaling $12,703,812.


SUFFOLK RESEARCH: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Suffolk Research Group, Inc.
        2 Avon Court
        Dix Hills, NY 11746

Bankruptcy Case No.: 06-72623

Type of Business: The Debtor provides recording and mixing
                  facilities for the music industry.

Chapter 11 Petition Date: October 20, 2006

Court: Eastern District of New York (Central Islip)

Debtor's Counsel: Michael J. Macco, Esq.
                  Macco & Stern, LLP
                  135 Pinelawn Road
                  Suite 120 South
                  Melville, NY 11747
                  Tel: (631) 549-7900
                  Fax: (631) 549-7845

Total Assets: $484,000

Total Debts:  $2,124,821

Debtor's 20 Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
Ryan LLC/American Properties               $153,000
130 West 42nd Street #301
New York, NY 10036

Newmark & Co. Real Estate                  $131,000
Attn: Matthew Mandell
520 Eighth Avenue
24th Floor
New York, NY 10018

Dwaine Mccollum                             $50,000
5406 Ladue Lane
Fairfax, VA 22030

Fleet Bank - Credit Line                    $21,500
265 Main Street
Islip, NY 11751

Advanta                                     $18,075
Advanta Bank Corp.
P.O. Box 30715
Salt Lake City, UT 84130

American Express Corp. Credit 11            $16,000
Po Box 297879
Ft. Lauderdale, FL 33329

Workmen's Compensation                      $16,000
Dept. of Labor/State of NY
UI Tax Services-Suffolk
250 Vets Highway, Room 3a6
Hauppauge, NY 11788

Bank of NY Business Card                    $12,266
C/O Chase Bankcard Scvs
P.O. Box 52188
Phoenix, AZ 85072

Steve Uzzo                                  $10,000
22 Fresh Pond Road
Northport, NY 11768

Martack                                      $8,403
Martack Corp. - Sue
100 Denton Avenue
New Hyde Park, NY 11040

John Bender                                  $8,000
655 Jersey Avenue
Jersey City, NJ 07302

Oxford Health Care                           $6,681
7120 Main Street
Trumbull, CT 06611

American Express Optima Card                 $5,068
P.O. Box 297879
Ft. Lauderdale, FL 33329

Wesley Merritt                               $4,500
61 Hewitt Blvd.
Center Moriches, NY 11934

NY State Dept. of Labor                      $4,500
Unemployment Ins. Div.
P.O. Box 551
Albany, NY 12201

Peerless                                     $4,488
c/o Brennan & Clark
721 E. Madison #200
Villa Park, IL 60181

HSBC/Comp USA Retail Services                $3,812
P.O. Box 17298
Baltimore, MD 21297

Home Depot Credit Services                   $3,047
Processing Center
Des Moines, IA 50364

Sam Ash Credit Card                          $2,915
c/o Household Bank
P.O. Box 5244
Carol Stream, IL 60197

William Wilcox                                 $800
159 Milton Street, Apt. 1
Brooklyn, NY 11222


SYLVEST FARMS: Wants Excl. Plan-Filing Period Extended to Feb. 12
----------------------------------------------------------------
Sylvest Farms Inc. and its debtors-affiliates ask the Honorable
Thomas B. Bennett of the U.S. Bankruptcy Court for the Northern
District of Alabama in Birmingham to extend their exclusive period
to file a chapter 11 plan until Feb. 12, 2007

The Debtors also want to extend their exclusive period to solicit
acceptances of their plan until April 13, 2007.

The Court established Aug. 25, 2006, as the bar date for filing
proofs of claims.  The Debtors said that they are still in the
process of analyzing the claims that have been filed.  The Debtors
added that they will be in a better position to examine their plan
alternatives once they analyzed all of the filed claims.

The filing of a competing plan before they filed one would be to
the detriment of their creditors, the Debtors concluded.

Headquartered in Montgomery, Alabama, Sylvest Farms, Inc. --
http://sylvestcompanies.com/-- produces, processes and markets     
poultry products.  The Debtors employ approximately 1,500 workers.
The Company and two debtor-affiliates filed for chapter 11
protection on April 18, 2006 (Bankr. N.D. Ala. Case No. 06-40525).  
Richard A. Robinson, Esq., and Eric S. Golden, Esq., at Baker &
Hostetler LLP represent the Debtors.  When the Debtors filed for
protection from their creditors, they estimated their total assets
and debts at $50 million to $100 million.


SYLVEST FARMS: Can Enter Into Document Storage Pact with DataBank
-----------------------------------------------------------------
The Honorable Thomas B. Bennett of the U.S. Bankruptcy Court for
the Northern District of Alabama in Birmingham authorized Sylvest
Farms Inc. and its debtors-affiliates to enter into a document
storage agreement with DataBank Inc.

The Debtors has sold substantially all of their assets to Koch
Foods of Alabama LLC and Koch Farms of Alabama LLC.  The asset
purchase agreement with Koch provides that the buyers will have
the unilateral right to determine whether they will destroy any of
the Debtors' business records.

Koch has informed the Debtors that upon expiration of a 90-day
period, the Debtors must remove the records because Koch intends
to destroy them.

The Debtors believe that their estates will be benefited if they
maintain some of their business records for a period of three
years.

DataBank said that the total expense for storing a certain number
of boxes for three years will be approximately $23,812.50.

The Debtors agreed to prepay any adjusted storage expense up to
$30,000.

Headquartered in Montgomery, Alabama, Sylvest Farms, Inc. --
http://sylvestcompanies.com/-- produces, processes and markets     
poultry products.  The Debtors employ approximately 1,500 workers.
The Company and two debtor-affiliates filed for chapter 11
protection on April 18, 2006 (Bankr. N.D. Ala. Case No. 06-40525).  
Richard A. Robinson, Esq., and Eric S. Golden, Esq., at Baker &
Hostetler LLP represent the Debtors.  When the Debtors filed for
protection from their creditors, they estimated their total assets
and debts at $50 million to $100 million.


TRM CORPORATION: S&P Withdraws CCC Senior Secured Rating
--------------------------------------------------------
Standard & Poor's Ratings Services has withdrawn its CCC/Watch
Dev/-- corporate credit and senior secured ratings for Portland,
Oregon-based TRM Corporation at the company's request.  "The
company has refinanced its $135 million and EUR15 million credit
facility with unrated bank debt," said Stndard & Poor's credit
analyst Lucy Patricola.


TYRINGHAM HOLDINGS: Hires FTI Consulting as Financial Advisors
--------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
gave Tyringham Holdings Inc. permission to employ FTI Consulting
Inc. as its financial advisors.

FTI Consulting will:

   a) manage the process to complete a transaction to sell the
      Debtor's company, including:

        i) contacting potential buyers;

       ii) gathering due diligence materials and managing the flow
           of information to prospective buyers;

      iii) negotiating with potential buyers as may be requested
           by the Debtor;

   b) assist with the identification and implementation of
      short-term cash management procedures;

   c) provide assistance to the Debtor with information and
      analyses required pursuant to the Debtor' DIP financing
      including, but not limited to, preparation for hearings
      regarding the use of cash collateral and DIP financing;

   d) provide assistance in connection with the development and
      implementation of employee benefit programs;

   e) provide assistance to the Debtor in the preparation of
      financial related disclosures required by the Court,
      including the Schedules of Assets and Liabilities, the
      Statement of Financial Affairs and Monthly Operating
      Reports;

   f) attend meetings and assist in discussions with potential
      investors, banks and other secured lenders, any official
      committee(s) appointed in these chapter 11 cases, the United
      States Trustee, other parties in interest and professionals
      hired by the same, as requested;

   g) analyze creditor claims by type, entity and individual
      claim, including assistance with development of databases,
      as necessary, to track such claims;

   h) provide assistance in the preparation of information and
      analysis necessary for the confirmation of a plan in these
      chapter 11 proceedings;

   i) provide assistance in the evaluation and analysis of
      avoidance actions, including fraudulent conveyances and
      preferential transfers;

   j) assist with the wind-down of the estate as may be requested
      by the Debtor; and,

   k) render other general business consulting or other assistance
      as the Debtor's management or counsel may deem necessary
      that are consistent with the role of a financial advisor
      and not duplicative of services provided by other
      professionals in this proceeding.

Robert J. Duffy, a FTI Consulting member, will charge the Debtor
on the following terms:

   (1) commencing as of the Debtor's bankruptcy filings and
       through October 2006, a monthly advisory fee of $140,000;

   (2) commencing as of November 2006 and through December 2006, a
       monthly advisory fee of $100,000;

   (3) commencing as of January 2006 and through the date upon
       which the any of the following occurs, a plan of
       reorganization confirmed by the Debtor's Chapter 11 case
       becomes effective, a chapter 7 trustee is appointed or the
       case is dismissed, a monthly advisory fee of $60,000.

In addition, the firm is entitled to these transaction fees:

                  Applicable Percentage

            Transaction Value                Fee
            -----------------                ---
            $10,000,000 and $12,000,000      1.5%
            Up to $13,999,999                2.0%
            Up to $14,999,999                2.25%
            Up to $17,499,999                2.75%
            Greater than $17,500,000         3.0%

The Firm will receive a minimum transaction fee of $150,000.

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

Headquartered in Richmond, Virginia, Tyringham Holdings, Inc.,
sells premium brand name jewelry to a broad base of middle and
upper income customers.  The Company filed for chapter 11
protection on Sept. 6, 2006 (Bankr. E.D. Va. Case No. 06-32385).  
Charles A. Dale, III, Esq., at McCarter & English, LLP, represents
the Debtor in its restructuring efforts.  At August 30, 2006, the
Debtor disclosed that it had $25.0 million in total assets and
$23.7 million in total debts.


TYRINGHAM HOLDINGS: Panel Hires Otterbourg Steindler as Counsel
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Virginia
allowed the Official Committee of Unsecured Creditors in Tyringham
Holdings, Inc.'s chapter 11 case to retain Otterbourg, Steindler,
Houston & Rosen, P.C., as its lead bankruptcy counsel.

Otterbourg Steindler will:

    a. assist and advise the Committee in its consultation with
       the Debtor relative to the administration of this case,
       including the sale of the Debtor's assets;

    b. attend meetings and negotiate with the representatives of
       the Debtor;

    c. assist and advise the Committee in its examination and
       analysis of the conduct of the Debtor's affairs;

    d. assist the Committee in the review, analysis and
       negotiation of any plan of reorganization that may be filed
       and to assist the Committee in the review, analysis and
       negotiation of the disclosure statement accompanying any
       plan of reorganization;

    e. assist the Committee in the review, analysis, and
       negotiation of any financing agreements;

    f. take all necessary action to protect and preserve the
       interests of the Committee, including (i) possible
       prosecution of actions on its behalf, (ii) if appropriate,
       negotiations concerning all litigation in which the Debtor
       is involved, and (iii) if appropriate, review and analysis
       of claims filed against the Debtor's estate;

    g. generally prepare on behalf of the Committee all necessary
       motions, applications, answers, orders, reports and papers
       in support of positions taken by the Committee;

    h. appear, as appropriate, before this Court, the Appellate
       Courts, and the U.S. Trustee, and to protect the interests
       of the Committee before those courts and before the U.S.
       Trustee; and

    i. perform all other necessary legal services in the
       Debtor's chapter 11 case.

Scott L. Hazan, Esq., a member at Otterbourg Steindler, told the
Court that the firm's professionals bill:

         Professional                            Hourly Rate
         ------------                            -----------
         Partner/Counsel                         $490 - $725
         Associate                               $240 - $525
         Paralegal/Legal Assistant               $150 - $195

Mr. Hazan assured the Court that his firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

Headquartered in Richmond, Virginia, Tyringham Holdings, Inc.,
sells premium brand name jewelry to a broad base of middle and
upper income customers.  The Company filed for chapter 11
protection on Sept. 6, 2006 (Bankr. E.D. Va. Case No. 06-32385).  
Charles A. Dale, III, Esq., at McCarter & English, LLP, represents
the Debtor in its restructuring efforts.  At August 30, 2006, the
Debtor disclosed that it had $25.0 million in total assets and
$23.7 million in total debts.


U.S. STEEL: 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 North American Metals & Mining sectors, the
rating agency confirmed its Ba1 Corporate Family Rating for United
States Steel Corporation.

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

Issuer: United States Steel Corporation

                                                   Projected
                         Old POD  New POD  LGD      Loss-Given
   Debt Issue            Rating   Rating   Rating   Default
   ----------            -------  -------  ------   ----------
   $348 Million
   10.75% Senior
   Unsecured Notes
   due 2008                Ba1      Ba1     LGD4       64%

   $49 Million
   10% Senior
   Unsecured Quarterly
   Income Debt
   Securities due 2031     Ba1      Ba1     LGD4       64%

   $348 Million
   9.75% Senior
   Unsecured Notes
   due 2010                Ba1      Ba1     LGD4       64%

Issuer: Allegheny Country Industrial Development Authority, PA

                                                  Projected
                         Old POD  New POD  LGD      Loss-Given
   Debt Issue            Rating   Rating   Rating   Default
   ----------            -------  -------  ------   ----------
   $42.4 Million
   5.0% Pollution
   Control Revenue
   Bonds due 2016          Ba1      Ba1     LGD4       64%

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%).

U.S. Steel (NYSE: X) -- http://www.ussteel.com/-- through its   
domestic operations, is engaged in the production, sale and
transportation of steel mill products, coke, and iron- bearing
taconite pellets; the management of mineral resources; real estate
development; and engineering and consulting services and, through
its European operations, which include U. S. Steel Kosice, located
in Slovakia, and U. S. Steel Balkan located in Serbia, in the
production and sale of steel mill products.  Certain business
activities are conducted through joint ventures and partially
owned companies.  United States Steel Corporation is a Delaware
corporation.


USA COMMERCIAL: Wants to Alter Terms of Palm Harbor, Marlton Loans
------------------------------------------------------------------
USA Commercial Mortgage Company asks the U.S. Bankruptcy Court for
the District of Nevada for authority to:

    a) modify certain terms of the Palm Harbor One Loan;

    b) subordinate the Marlton Square 2nd Loan if the conditions
       outlined in the subordination agreement are satisfied;

    c) grant the short-term forbearance for the Marlton Square 1st
       Loan; and

    d) provide a full reconveyance and release of the Marlton
       Square 1st Loan upon its payment in full by a refinancing
       loan;

USACM is party to individual loan servicing agreements with
various direct lenders for the Palm Harbor, Marlton 2 and Marlton
1 loans.  Under these servicing agreements, the Debtor is
authorized to undertake various servicing functions in connection
with the loans.  

As part of that business, the Debtor receives requests for
modifications and forbearances of loans it services, which the
Debtor analyzes to determine if the loan modification or
forbearance will enhance the prospects of repayment of the loans
without the need for expensive and time consuming collection
activities.    

                         Palm Harbor

The Palm Harbor Loan is funding the Palm Harbor One condominium
project in Florida.  The loan is secured by a first priority lien
on the project.  The current principal balance of the Plan Harbor
loan, originated in December 2005, is approximately $27.6 million.  
This loan matures on Dec. 16, 2006.

Borrower Palm Harbor One, LLC, has proposed a modification of the
Palm Harbor loan that would reduce the minimum sales prices, and
corresponding partial release prices, for condominium units at the
Palm Harbor One Project by 20%.  Palm Harbor says the modification
will expedite the sale of the remaining 419 condominium units and
allow it to pay off the loan in full by its maturity date.

New sale prices for the 419 units following the proposed 20%
reduction are:

   Square Footage         Current Min.     Modified Min. Sale
      Of Unit              Sale Price       Price (20% Off)
   --------------         ------------     ------------------
        630                 $104,400            $83,520
        650                 $108,000            $86,400
        775                 $117,000            $93,600
        860                 $122,400            $97,920
        900                 $135,900           $108,720
        930                 $134,100           $107,280

The Debtor says there is sufficient equity in the Palm Harbor One
project, even with the 20% price cut, for the Palm Harbor lone to
be paid in full.

                          Marlton Loans

The Marlton Square Second and Marlton Square First loans were
originated in Aug. 11, 2005, with MS Acquisition as borrower.  
Marlton 2 provides for a $6 million loan maturing on
March 18, 2007, while Marlton 1 provides for a $30 million loan
that matured in September 2006.

MS Acquisition has informed USACM that the Marlton 1 loan will be
paid in full on Nov. 19, 2006, by a refinancing development loan
on the Marlton Square Project.  MS Acquisition has asked USACM to
confirm that the Marlton 2 loan will be subordinated to the
refinancing development loan when the Marlton 1 loan is paid in
full.

Marlton 2 is currently nonperforming and the accrued and unpaid
interest on the loan as of Sept. 30 was $595,084.  USACM tells the
Court it intends to provide the requested subordination, following
court approval, only if the Marlton 2 loan is performing as of the
date of the requested subordination.

The Debtor also ask the Court to provide specific authorization
for the Debtor to agree to a short-term, two-month forbearance on
exercising its remedies on the Marlton 1 Loan, which just matured,
and also specifically authorize the Debtor to provide the
requested full reconveyance of the Marlton Square Project from the
lien of the Marlton Square 1st Loan Trust Deed upon payment in
full of all amounts owed on the Marlton 1 Loan.  

Pursuant to the forbearance, USACM agreed not to issue any notices
of default and commence any foreclosure action on the Marlton
Square 1st Loan Trust Deed prior to Nov. 19, 2006.  The total
estimated payoff amount for the Marlton 1 loan is $33,553,254,
including interest and other fees.

                      About USA Commercial

Based in Las Vegas, Nevada, USA Commercial Mortgage Company, dba
USA Capital -- http://www.usacapitalcorp.com/-- provides more  
than $1 billion in short-term and permanent financing to
homebuilders, commercial developers, apartment owners and
institutions nationwide.  The Company and its debtor-affiliates
filed for chapter 11 protection on April 13, 2006 (Bankr. D. Nev.
Case Nos. 06-10725 to 06-10729).

Lenard E. Schwartzer, Esq., at Schwartzer & Mcpherson Law Firm,
and Annette W. Jarvis, Esq., at Ray Quinney & Nebeker, P.C.,
represent the Debtors in their restructuring efforts.  Thomas J.
Allison, a senior managing director at Mesirow Financial Interim
Management LLC, has been employed as Chief Restructuring Officer
for the Debtors.

Susan M. Freeman, Esq., and Rob Charles, Esq., at Lewis and Roca
LLP represent the Official Committee of Unsecured Creditors of USA
Commercial Mortgage Company.  Edward M. Burr at Sierra Consulting
Group, LLC, gives financial advice to the Creditors Committee of
USA Mortgage.

Marc A. Levinson, Esq., and Jeffery D. Hermann, Esq., at Orrick,
Herrington & Sutcliffe LLP, and Bob L. Olson, Esq., and Anne M.
Loraditch, Esq., at Beckley Singleton, Chartered, represent the
Official Committee of Equity Security Holders of USA Capital
Diversified Trust Deed Fund, LLC.  FTI Consulting, Inc., gives
financial advice to the Equity Committee of USA Diversified.

Candace C. Carlyon, Esq., and Shawn w. Miller, Esq., at Shea &
Carlyon, Ltd., and Jeffrey H. Davidson, Esq., Frank A. Merola,
Esq., and Eve H. Karasik, Esq., at Stutman, Treister & Glatt, PC,
represent the Official Committee of Equity Security Holders of USA
Capital First Trust Deed Fund, LLC.  Matthew A. Kvarda, at Alvarez
& Marsal, LLC, gives financial advise to the Equity Committee of
USA First.

When the Debtors filed for protection from their creditors, they
estimated assets of more than $100 million and debts between
$10 million and $50 million.


USEC 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 North American Metals & Mining sectors, the
rating agency confirmed its B1 Corporate Family Rating for USEC
Inc. and its B3 rating on the Company's $150 million issue of
6.75% senior unsecured notes due 2009.  Moody's also assigned an
LGD5 rating to those loans, suggesting noteholders will experience
a 75% 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%).

Bethesda, Maryland-based USEC Inc. (NYSE:USU) supplies enriched
uranium fuel for commercial nuclear power plants.


VARTEC TELECOM: Court Okays Lain Faulkner as Trustee's Accountant
-----------------------------------------------------------------
The Honorable Harlin DeWayne Hale of the U.S. Bankruptcy Court for
the Northern District of Texas in Dallas authorized Jeffrey H.
Mims to employ Lain, Faulkner & Co., P.C., as his accountant.

Mr. Mims is the Chapter 7 Trustee appointed in VarTec Telecom,
Inc., and its debtor-affiliates' bankruptcy cases.

Lain Faulkner will provide accounting services with respect to the
Trustee's prosecution of avoidance actions.  Specifically, the
Trustee has asked Lain Faulkner to develop accounting data to
assist him in determining and analyzing claims or causes of action
for preferences and fraudulent transfers.

Lain Faulkner's standard hourly rates are:

   Designation                     Hourly Rate
   -----------                     -----------
   Shareholders                    $305 - $345
   CPAs                                $230
   Staff Accountants               $150 - $190
   Clerical & Bookkeepers           $50 - $110

To the best of the Trustee's knowledge, Lain Faulkner represents
no interest adverse to the Debtors' estates and is disinterested
pursuant to Section 101(14) of the Bankruptcy Code.

                     About VarTec Telecom Inc.

Headquartered in Dallas, Texas, VarTec Telecom Inc. --
http://www.VarTec.com/-- provided local and long distance service
and is considered a pioneer in promoting 10-10 calling plans.  The
Company and its affiliates filed for chapter 11 protection on
November 1, 2004 (Bankr. N.D. Tex. Case No. 04-81694.  Daniel C.
Stewart, Esq., William L. Wallander, Esq., and Richard H. London,
Esq., at Vinson & Elkins, represented the Debtors.  J. Michael
Sutherland, Esq., and Stephen A. Goodwin, Esq., at Carrington
Coleman Sloman & Blumenthal, represented the Official Committee of
Unsecured Creditors.

On June 16, 2006, the Debtors' Chapter 11 cases were converted
into liquidation proceedings under Chapter 7 of the Bankruptcy
Code.  Jeffrey H. Mims was subsequently appointed as Chapter 7
Trustee.  J. Michael Sutherland, Esq., at Carrington Coleman
Sloman & Blumenthal, LLP, represents Mr. Mims.  Craig H.
Averch, Esq., at White & Case, LLP, represented the Official
Committee of Excel Independent Representatives.

When the Debtors filed for protection from their creditors, they
listed more than $100 million in assets and debts.


VASOMEDICAL INC: Incurs $539,000 Net Loss for Period Ended Aug. 31
------------------------------------------------------------------
Vasomedical Inc. reported financial results for the three months
ended Aug. 31, 2006.

The Company reported total revenues of $2,082,000 in the first
quarter of fiscal 2007, compared with total revenues of $3,536,000
in the first quarter of fiscal 2006.  Revenues from equipment
sales declined approximately 56% to $1,073,000 in the first
quarter of fiscal 2007 compared to $2,457,000 in same period last
year.

Equipment rentals and services were $1,009,000 in the three months
ended Aug. 31, 2006, down by about 7% from $1,080,000 for the same
period in the prior year.  The Company recorded a net loss   
attributable to common shareholders of $539,000 during the three
months ended Aug. 31, 2006, compared to a loss of $1,698,000
during the three months ended Aug. 31, 2005.

The Company also reported loss from operations of $537,000 for the
quarter ended Aug. 31, 2006 versus loss from operations of
$879,000 for the same period in 2005.

Thomas Glover, president and chief executive officer, commented,
"The recent publication of the positive PEECH study provides
additional clinical evidence that EECP(R) therapy again has been
proven to be an effective, safe, noninvasive, low cost therapy for
ischemic heart disease, however the therapy continues to face
significant challenges obtaining broader adoption in the
cardiology community due in large part to reimbursement policies
that limit the patient population and restrict availability of the
therapy.  We are committed to working diligently with leading
physicians in the cardiology community to obtain a broader
understanding of the therapy's many benefits and with CMS to
expand reimbursement coverage for patients not already covered
under the existing guidelines."

Mr. Glover continued, "We are continuing efforts to preserve cash,
we have reduced expenditures in areas including clinical research,
product development, as well as sales and marketing, and we are
continuing to restructure our costs to be better aligned with
potential near-term sales.  These cuts, while necessary, have
restricted our ability to advance the adoption of EECP(R) therapy
in the medical market place."

The Company as of Aug. 31, 2006, had cash, cash equivalents and
certificates of deposit balances of $1,791,000 compared with
$2,386,000 as of May 31, 2006 and working capital as of
Aug. 31, 2006 of $2,255,000 as compared with $2,867,000 as of
May 31, 2006.

Vasomedical, Inc., (OTC BB: VASO.OB)
-- http://www.vasomedical.com/-- develops, manufactures and  
markets EECP external counter-pulsation systems based on the
Company's proprietary technology.  EECP therapy is a noninvasive,
outpatient therapy for the treatment of diseases of the
cardiovascular system currently indicated for use in cases of
stable or unstable angina, congestive heart failure, acute
myocardial infarction and cardiogenic shock.  The Company provides
hospitals, clinics and private practices with EECP equipment,
treatment guidance and a staff training and equipment maintenance
program.

                      Going Concern Doubt

As reported in the Troubled Company Reporter on Sept. 8, 2006
Miller Ellin & Company, LLP, expressed substantial doubt about
Vasomedical, Inc.'s ability to continue as a going concern after
auditing the Company's financial statements for the fiscal year
ended May 31, 2006.  The auditing firm pointed to the Company's
recurring losses from operations and a net capital deficiency.


WESTERN APARTMENT: U.S. Trustee Balks at Disclosure Statement
-------------------------------------------------------------
Steven Jay Katzman, the United States Trustee for Region 15, tells
the U. S. Bankruptcy Court for the District of Hawaii that Western
Apartment Supply & Maintenance Company's disclosure statement
explaining its plan of reorganization does not contain "adequate
information" pursuant to Section 1125(a) of the Bankruptcy Code.

The U.S. Trustee wants the Disclosure Statement to, among others:

   a) disclose whether a postconfirmation sale or refinance of the
      Debtor's hotel in Maui, Hawaii would require Court approval
      or would be at the sole discretion of the Debtor; and

   b) provide payment in cash on the effective date of the Plan
      to Class 1 Administrative Expense Claims.

              Debtor's Proposed Plan of Reorganization

The Plan contemplates that Class 1 Administrative Expense Claims
will be paid in full before payments or distributions are made to
claims under classes 3, 7 and 9.

Class 3 priority claims including priority wage claims, if any,
will be paid in full after the claims of Class 1 and prior to any
payments to the claimants
of Classes 9 and 6.  The Priority Claims will be paid in full on a
pro-rata basis from deposits to a plan distribution account.

The secured claim of La Jolla Loans Inc. is subject to ongoing
litigation.  The allowed amount of the claim, if determined, will
be paid in full with interest.

John Santero's $482,000 secured claim will be paid in full with
interest.

Marc Hotels' $311,000 claim, if allowed as a secured claim, will
also be paid in full with interest.

Phoenix Asset Advisors Inc., with regards to its $1,500,000
secured claim, agreed to subordinate its claim.  Phoenix Asset
will only receive payment under the Plan after all classes
including all unsecured claims are paid in full.

Holders of Allowed General Unsecured Claims will be paid pro rata
up to in full, without interest from any available proceeds.

Grand Pacific Financing Corp. will not receive any distribution
with regards to its claim, while Carroll Davis, with regards to
his shareholder loans, will only be entitled to retain his equity
in the Debtor to the extent all claims are paid in full with in
interest except Phoenix Asset's claim.

                           Plan Funding

Distributions under the Plan will be sourced from the Debtor's
sale of its major asset -- Maui Oceanfront Inn in Maui, Hawaii
-- which is subject to the terms of the Debtor's lease agreement
with the State of Hawaii.

The Debtor proposed to sell the property for $13,750,000 to Levy
Affiliated Holdings LLC.

A full-text copy of the Debtor's Disclosure Statement is available
for a fee at:  

   http://www.researcharchives.com/bin/download?id=061020051048

                       About Western Apartment

Based in San Diego, California, Western Apartment Supply &
Maintenance previously filed for chapter 11 protection on
Jan. 12, 2004 (Bankr. D. Hawaii Case NO. 04-00072).  The case
was dismissed on May 16, 2006.

The Debtor filed its second chapter 11 petition on Apr. 18, 2006
(Bankr. S.D. Calif. Case No. 06-00821).  When the Debtor filed for
chapter 22, it listed total assets of $18,045,054 and total debts
of $18,131,069.

On June 30, 2006, at the request La Jolla Loans Inc., a secured
creditor, the U.S. Bankruptcy Court for the Southern District of
California transferred the Debtor's case to the U.S. Bankruptcy
Court for the District of Hawaii on July 1, 2006 (Bankr. D. Hawaii
Case No. 06-00459).  John L. Smaha, Esq., at Smaha & Daley and
Jerry Guben, Esq., at Reinwald, O'Connor & Playdon represent the
Debtor.  No Official Committee of Unsecured Creditors has been
appointed in this case.


WESTERN APT: LJL Says Disclosure Statement Concealed Lease Default
------------------------------------------------------------------
La Jolla Loans Inc. supports the United States Trustee's objection
to Western Apartment Supply & Maintenance Company's disclosure
statement explaining its plan of reorganization.

La Jolla agrees with the U.S. Trustee that the Debtor's Disclosure
Statement does not contain "adequate information" pursuant to
Section 1125(a) of the Bankruptcy Code.

La Jolla holds a first mortgage on the Debtor's interest in Maui
Oceanfront Inn as a security for a construction loan made by the
Debtor on March 9, 2001, in the original principal amount of
$7,600,000.

La Jolla asserts, among others, that the Debtor did not mention in
the Disclosure Statement its postpetition default on its ground
lease agreement with the State of Hawaii for the Maui Oceanfront
Inn.

Specifically, La Jolla points out that the Debtor failed to:

   a) timely pay the full rental amount on the lease;

   b) pay taxes on the lease; and

   c) comply with the zoning laws of the State.

"This non-disclosure is significant because the cure period under
Section 365 [of the Bankruptcy Code] may be significantly shorter
than the cure period contemplated by the Debtor's proposed plan,"
James N. Duca, Eq., at Kessner Duca Umebayashi Bain & Matsunaga,
says in La Jolla's behalf.

              Debtor's Proposed Plan of Reorganization

The Plan contemplates that Class 1 Administrative Expense Claims
will be paid in full before payments or distributions are made to
claims under classes 3, 7 and 9.

Class 3 priority claims including priority wage claims, if any,
will be paid in full after the claims of Class 1 and prior to any
payments to the claimants
of Classes 9 and 6.  The Priority Claims will be paid in full on a
pro-rata basis from deposits to a plan distribution account.

The secured claim of La Jolla Loans Inc. is subject to ongoing
litigation.  The allowed amount of the claim, if determined, will
be paid in full with interest.

John Santero's $482,000 secured claim will be paid in full with
interest.

Marc Hotels' $311,000 claim, if allowed as a secured claim, will
also be paid in full with interest.

Phoenix Asset Advisors Inc., with regards to its $1,500,000
secured claim, agreed to subordinate its claim.  Phoenix Asset
will only receive payment under the Plan after all classes
including all unsecured claims are paid in full.

Holders of Allowed General Unsecured Claims will be paid pro rata
up to in full, without interest from any available proceeds.

Grand Pacific Financing Corp. will not receive any distribution
with regards to its claim, while Carroll Davis, with regards to
his shareholder loans, will only be entitled to retain his equity
in the Debtor to the extent all claims are paid in full with in
interest except Phoenix Asset's claim.

                           Plan Funding

Distributions under the Plan will be sourced from the Debtor's
sale of its major asset -- Maui Oceanfront Inn in Maui, Hawaii
-- which is subject to the terms of the Debtor's lease agreement
with the State of Hawaii.

The Debtor proposed to sell the property for $13,750,000 to Levy
Affiliated Holdings LLC.

A full-text copy of the Debtor's Disclosure Statement is available
for a fee at:

   http://www.researcharchives.com/bin/download?id=061020051048

                      About Western Apartment

Based in San Diego, California, Western Apartment Supply &
Maintenance previously filed for chapter 11 protection on
Jan. 12, 2004 (Bankr. D. Hawaii Case NO. 04-00072).  The case
was dismissed on May 16, 2006.

The Debtor filed its second chapter 11 petition on Apr. 18, 2006
(Bankr. S.D. Calif. Case No. 06-00821).  When the Debtor filed for
chapter 22, it listed total assets of $18,045,054 and total debts
of $18,131,069.

On June 30, 2006, at the request La Jolla Loans Inc., a secured
creditor, the U.S. Bankruptcy Court for the Southern District of
California transferred the Debtor's case to the U.S. Bankruptcy
Court for the District of Hawaii on July 1, 2006 (Bankr. D. Hawaii
Case No. 06-00459).  John L. Smaha, Esq., at Smaha & Daley and
Jerry Guben, Esq., at Reinwald, O'Connor & Playdon represent the
Debtor.  No Official Committee of Unsecured Creditors has been
appointed in this case.


WISE METALS: 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 North American Metals & Mining sectors, the
rating agency confirmed its Caa3 Corporate Family Rating for Wise
Metals Group LLC and its Ca rating on the Company's $150 million
issue of 10.25% senior secured global notes.  Moody's also
assigned an LGD5 rating to those loans, suggesting noteholders
will experience an 82% 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 Linthicum, Maryland, Wise Metals Group LLC
produces aluminum can sheet and packaging products from a casting
and rolling facility in Muscle Shoals, Alabama and owns several
recycling centers throughout the United States.


WORLDCOM: Investors Set to Receive Initial $150MM Payout from SEC
-----------------------------------------------------------------
Thousands of individual investors who were victimized in the
massive WorldCom financial fraud will soon receive up to
$150 million from a fund set up by the Securities and Exchange
Commission to help compensate investors for their losses.  "The
distribution," according to SEC Chairman Christopher Cox, "will
begin immediately."

The SEC's ability to return penalty money directly to fraud
victims is a new authority granted by the Sarbanes-Oxley Act of
2002.  Under Section 308 of the Act, the entire $750 million
penalty that the SEC obtained from WorldCom was paid into a "Fair
Fund" when the reorganized company emerged from bankruptcy
protection in April 2004.  All of that money is earmarked for
return to injured investors.  The United States District Court
overseeing the SEC litigation against WorldCom cleared the way for
the first installment of distributions, now that a sufficient
number of claims have been processed.

"This most recent success of the Fair Funds process will play an
important role in encouraging investors to continue to place trust
in America's capital markets," said Chairman Cox.  "It shows that
even when things go terribly wrong, there is a safety net for
injured investors.  Fair Funds are particularly useful when, as
here, the investors who have lost money can be identified, and
their financial losses can be calculated.  And while tracking down
WorldCom's investors in 110 countries isn't easy, the ultimate
result will be that three quarters of a billion dollars will be
returned to its rightful owners."

During the period covered by the fraud, WorldCom had 34 different
publicly traded securities, and over 32 billion shares of its
common stock were traded.  Investors in 110 countries made nearly
450,000 claims to the Fair Fund -- in 10 languages -- related to
approximately 9.4 million transactions in those securities.  The
initial $150 million distribution approved by the court covers
claims processed to date, including most of those filed by
individual investors.  Subsequent distributions will be made as
the remaining claims are processed.

"I am delighted that individual investors will soon begin
receiving their checks," said Peter H. Bresnan, Deputy Director of
Enforcement.  "I would like to thank the Court, as well as the
Distribution Agent, former SEC Chairman Richard Breeden, for the
tremendous work that he and his team have done in implementing the
distribution and assisting victims of WorldCom's massive fraud."

The Commission sued WorldCom on June 26, 2002, the day after the
company disclosed it had made massive misstatements on its
financial statements for the preceding five fiscal quarters.  In
July 2003, the District Court entered a final judgment ordering
WorldCom to pay a civil penalty.  Pursuant to the Commission's
request, this penalty was placed in a Fair Fund for the benefit of
WorldCom's investor victims.

The "Fair Funds for Investors" provision in the Sarbanes-Oxley Act
of 2002 made it possible for all fines obtained in SEC enforcement
actions to be distributed to investor victims.  By law prior to
2002, all civil penalties obtained by the SEC in securities
enforcement actions were deposited in the general fund of the U.S.
Treasury.

Questions regarding the WorldCom Fair Funds distribution may be
directed to:

   The Distribution Agent
   WorldCom Victim Trust
   P.O. Box 6970
   Syracuse, NY 13217
   Tel: (866) 894-8871
   www.worldcomvictimtrust.com/

                         About WorldCom

WorldCom, Inc., a Clinton, MS-based global communications company,
filed for chapter 11 protection on July 21, 2002 (Bankr. S.D.N.Y.
Case No. 02-13532).  On March 31, 2002, WorldCom listed
$103,803,000,000 in assets and $45,897,000,000 in debts.  The
Bankruptcy Court confirmed WorldCom's Plan on Oct. 31, 2003, and
on Apr. 20, 2004, the Company formally emerged from U.S. Chapter
11 protection as MCI, Inc.  On Jan. 6, 2006, MCI merged with
Verizon Communications, Inc.  MCI is now known as Verizon
Business, a unit of Verizon Communications.


* Cerberus Capital Appoints John Snow as Chairman
-------------------------------------------------
John W. Snow, the 73rd Secretary of the Treasury of the United
States of America, has been appointed Chairman of Cerberus Capital
Management, L.P.  

Prior to becoming Secretary of the Treasury in February 2003,
Secretary Snow was Chairman and Chief Executive Officer of CSX
Corporation.

"It's an honor to have a person of Secretary Snow's stature join
the Cerberus team," said Stephen Feinberg, CEO of Cerberus
Capital.  "Secretary Snow has worked tirelessly, traveling the
globe, to build a consensus on global economic issues.  We will
benefit enormously from his vast experience in business operations
as well as his keen insights to economic trends and forces."

Mr. Snow also held several high-ranking positions in the
Department of Transportation during the Ford Administration.  
Additionally, Mr. Snow served as Chairman of the Business
Roundtable, comprised of 250 CEO's of the nation's largest
companies.  He has served on various corporate and non-profit
boards, including Johnson & Johnson, USX, Verizon, the University
of Virginia Darden School, and Johns Hopkins University.

Mr. Snow holds a Master's Degree from Johns Hopkins University and
a Ph.D. in Economics from the University of Virginia, a J.D. from
George Washington University, a B.A. from the University of Toledo
and numerous honorary degrees.  He has also served on the faculty
of several academic institutions.

                         About Cerberus

Established in 1992, Cerberus Capital Management, L.P. --
http://www.cerberuscapital.com/-- is a private investment firm  
with $16.5 billion under management in funds and accounts.  
Through its team of more than 275 investment and operations
professionals, Cerberus specializes in providing both financial
resources and operational expertise to help transform undervalued
companies into industry leaders for long-term success and value
creation.  Cerberus is headquartered in New York City, with
offices in Chicago, Los Angeles, and Atlanta, as well as advisory
offices in London, Baarn, Frankfurt, Tokyo, Osaka and Taipei.


* Lawrence Summers to Join The D. E. Shaw Group
-----------------------------------------------
The D. E. Shaw group disclosed today that Lawrence H. Summers,
former Treasury Secretary and Harvard University president, will
join the firm as a managing director.  In this capacity, Dr.
Summers will be involved on a part-time basis in various strategic
initiatives and high-level portfolio management activities and,
along with the firm's other managing directors, in reviewing the
overall operations of the D. E. Shaw group.

"We're delighted that Larry Summers will be joining us," said
Dr. David Shaw, chairman of D. E. Shaw & Co., Inc.  "Larry is an
enormously gifted economist, and has made major contributions as a
researcher, a public servant, and an academic leader.  His
extraordinary intellect, deep understanding of the financial
markets, and wealth of organizational experience will be uniquely
valuable resources to the firm."

"We'll benefit greatly from the addition of Larry to our senior
team," said Julius Gaudio, a managing director of D. E. Shaw and a
member of the firm's executive committee.  "Larry has both a
world-class mind and a finely honed sense of what's feasible in
practice. His involvement will meaningfully enhance our ability to
identify and critically evaluate new investment opportunities
throughout the world's capital markets."

"The D. E. Shaw Group has been pioneering in its approach to
investment and technology," said Dr. Summers.  "It has assembled a
gifted and talented team with a deep commitment to applying the
most sophisticated thinking to all of its activities.  I am
excited about the prospect of participating in its continued
diversification into new areas of investment management, and I
look forward to working on a wide range of significant new
projects."

Dr. Summers received his Ph.D. in Economics from Harvard
University in 1982 and, at age 28, became one of the youngest
professors to receive tenure at Harvard in the modern era.  In
1987, he was the first social scientist to receive the National
Science Foundation's annual Alan T. Waterman Prize for Outstanding
Scientific Achievement.  In 1991, he was named Chief Economist of
the World Bank.  In 1993, the American Economic Association chose
Dr. Summers to receive the John Bates Clark Award, given every two
years to the leading American economist under the age of 40.  In
1999, he was nominated by President Clinton and confirmed by the
U.S. Senate as the 71st Secretary of the Treasury, having served
as both Under and Deputy Secretary prior to his confirmation.

Dr. Summers served from 2001 to 2006 as the 27th President of
Harvard University.  He currently holds one of its most
distinguished academic appointments as the Charles W. Eliot
University Professor and focuses his research and teaching on
global economic issues and higher education.  Dr. Summers also
writes a monthly column for The Financial Times, sits on the board
of a number of non-profit institutions, and serves on several
public policy advisory committees.

The D. E. Shaw Group -- http://www.deshaw.com/-- is an investment  
and technology development firm.  The D. E. Shaw group encompasses
a number of closely related entities with approximately 1,000
employees and about $25 billion in aggregate investment capital.
The firm is headquartered in New York, and maintains offices in
London, Silicon Valley, Houston, Kansas City, San Francisco,
Washington D.C., and Hyderabad, India.


* Lisa Poulin Joins Corporate Revitalization as Partner
-------------------------------------------------------
Lisa Poulin recently joined Corporate Revitalization Partners LLC
as a partner.  She will work out of CRP's New York office
initially, and then head up its new Washington, D.C. office during
the first quarter of 2007.  The office will expand the firm's
existing presence on the East Coast, and will better serve
financial constituencies in Washington, D.C.

"We are very happy to have Lisa join us as a partner," said
William Snyder, a managing partner of CRP.  "We have high regard
for her experience and national reputation in the turnaround
management industry. We are fortunate to have someone of her
caliber to help strengthen our presence in the Northeast."

Ms. Poulin will be responsible for marketing the firm's turnaround
management services and actively managing client engagements.  Ms.
Poulin is a senior executive with more than 27 years of turnaround
management and advisory experience.  She has served as CEO, CRO,
financial advisor and trustee to mid and large cap companies and
has been involved in the resolution of several public bankruptcy
cases, including but not limited to Oakwood Homes Corporation,
Environmental Elements Corporation, Seitel, Inc., US Airways and
the Kmart Corporation.

"I'm really looking forward to joining CRP," said Ms. Poulin.   
"The firm has a great reputation for excellence and talented
professionals that can help clients realize value."

Ms. Poulin is a frequent speaker and author on insolvency and
turnaround management.  She is a Certified Turnaround Professional
and a Certified Insolvency and Restructuring Advisor.  She holds a
bachelor's degree from Bucknell University and a master's degree
from the University of Pittsburgh.  In addition, Ms. Poulin serves
as a vice president of the Turnaround Management Association Board
of Directors and a member of the organization's Executive
Committee.

Corporate Revitalization Partners LLC -- http://www.crpllc.net/--  
is a turnaround management firm that guides distressed companies
back to stability and profitability through hands-on leadership
and management.  CRP's services include interim management;
operational financial advisory services; bankruptcy support;
merger, acquisition and due diligence support; real estate
maximization and EBITDA+ operational improvement analysis.


* BOND PRICING: For the week of October 16 -- October 20, 2006
--------------------------------------------------------------

Issuer                               Coupon   Maturity  Price
------                               ------   --------  -----
ABC Rail Product                     10.500%  01/15/04     1
ABC Rail Product                     10.500%  12/31/04     1
Adelphia Comm.                        3.250%  05/01/21     0
Adelphia Comm.                        6.000%  02/15/06     0
Adelphia Comm.                        7.500%  01/15/04    66
Adelphia Comm.                        7.750%  01/15/09    72
Adelphia Comm.                        7.875%  05/01/09    72
Adelphia Comm.                        8.125%  07/15/03    69
Adelphia Comm.                        8.375%  02/01/08    72
Adelphia Comm.                        9.250%  10/01/02    67
Adelphia Comm.                        9.375%  11/15/09    73
Adelphia Comm.                        9.500%  02/15/04    64
Adelphia Comm.                        9.875%  03/01/05    69
Adelphia Comm.                        9.875%  03/01/07    73
Adelphia Comm.                       10.250%  11/01/06    69
Adelphia Comm.                       10.500%  07/15/04    73
Adelphia Comm.                       10.875%  10/01/10    71
Allegiance Tel.                      11.750%  02/15/08    47
Allegiance Tel.                      12.875%  05/15/08    48
Amer & Forgn Pwr                      5.000%  03/01/30    66
Amer Color Graph                     10.000%  06/15/10    69
Antigenics                            5.250%  02/01/25    64
Anvil Knitwear                       10.875%  03/15/07    72
Archibald Candy                      10.000%  11/01/07     0
Armstrong World                       6.350%  08/15/03    70
Armstrong World                       6.500%  08/15/05    73
Armstrong World                       7.450%  05/15/29    70
Armstrong World                       9.000%  06/15/04    66
ATA Holdings                         13.000%  02/01/09     4
Atlantic Mutual                       8.150%  02/15/28    61
Autocam Corp.                        10.875%  06/15/14    61
Avado Brands Inc                     11.750%  06/15/09     1
Bank New England                      8.750%  04/01/99     5
Bank New England                      9.500%  02/15/96    13
BBN Corp                              6.000%  04/01/12     0
Burlington North                      3.200%  01/01/45    57
Calpine Corp                          4.750%  11/15/23    48
Calpine Corp                          6.000%  09/30/14    39
Calpine Corp                          7.625%  04/15/06    71
Calpine Corp                          7.750%  04/15/09    75
Calpine Corp                          7.750%  06/01/15    33
Calpine Corp                          7.875%  04/01/08    72
Calpine Corp                          8.500%  02/15/11    47
Calpine Corp                          8.625%  08/15/10    47
Calpine Corp                          8.750%  07/15/07    70
Calpine Corp                         10.500%  05/15/06    72
Cell Therapeutic                      5.750%  06/15/08    70
Central Tractor                      10.625%  04/01/07     0
Chic East Ill RR                      5.000%  01/01/54    57
CIH                                   9.920%  04/01/14    71
CIH                                  10.000%  05/15/14    71
CIH                                  11.125%  01/15/14    74
Clark Material                       10.750%  11/15/06     0
Collins & Aikman                     10.750%  12/31/11     3
Columbia/HCA                          7.050%  12/01/27    74
Columbia/HCA                          7.500%  11/15/95    73
Comcast Corp                          2.000%  10/15/29    41
Comprehens Care                       7.500%  04/15/10    65
Cooper Standard                       8.375%  12/15/14    75
Cray Research                         6.125%  02/01/11     5
Dal-Dflt09/05                         9.000%  05/15/16    29
Dana Corp                             5.850%  01/15/15    73
Dana Corp                             7.000%  03/01/29    73
Dana Corp                             7.000%  03/15/28    73
Dana Corp                             9.000%  08/15/11    68
Dana Corp                            10.125%  03/15/10    71
Delco Remy Intl                       9.375%  04/15/12    44
Delco Remy Intl                      11.000%  05/01/09    48
Delta Air Lines                       2.875%  02/18/24    30
Delta Air Lines                       7.700%  12/15/05    29
Delta Air Lines                       7.900%  12/15/09    33
Delta Air Lines                       8.000%  06/03/23    31
Delta Air Lines                       8.300%  12/15/29    32
Delta Air Lines                       9.250%  03/15/22    29
Delta Air Lines                       9.250%  12/27/07    29
Delta Air Lines                       9.750%  05/15/21    30
Delta Air Lines                      10.000%  06/01/08    56
Delta Air Lines                      10.000%  06/05/13    74
Delta Air Lines                      10.000%  08/15/08    32
Delta Air Lines                      10.060%  01/02/16    73
Delta Air Lines                      10.080%  06/16/07    65
Delta Air Lines                      10.125%  05/15/10    29
Delta Air Lines                      10.375%  02/01/11    30
Delta Air Lines                      10.375%  12/15/22    30
Delta Mills Inc                       9.625%  09/01/07    23
Deutsche Bank NY                      8.500%  11/15/16    70
Diamond Triumph                       9.250%  04/01/08    71
Diva Systems                         12.625%  03/01/08     1
Dov Pharmaceutic                      2.500%  01/15/25    48
Dura Operating                        8.625%  04/15/12    39
Dura Operating                        9.000%  05/01/09     5
Duty Free Int'l                       7.000%  01/15/04     0
DVI Inc                               9.875%  02/01/04     8
Dyersburg Corp                        9.750%  09/01/07     0
Eagle-Picher Inc                      9.750%  09/01/13    74
Empire Gas Corp                       9.000%  12/31/07     1
Encysive Pharmac                      2.500%  03/15/12    73
Exodus Comm Inc                      10.750%  12/12/09     0
Exodus Comm Inc                      11.625%  07/15/10     0
Fedders North AM                      9.875%  03/01/14    67
Federal-Mogul Co.                     7.375%  01/15/06    59
Federal-Mogul Co.                     7.500%  01/15/09    61
Federal-Mogul Co.                     8.160%  03/06/03    51
Federal-Mogul Co.                     8.330%  11/15/01    59
Federal-Mogul Co.                     8.370%  11/15/01    53
Federal-Mogul Co.                     8.370%  11/15/01    59
Federal-Mogul Co.                     8.800%  04/15/07    60
Finova Group                          7.500%  11/15/09    30
Ford Motor Co                         6.500%  08/01/18    75
Ford Motor Co                         6.625%  02/15/28    74
Ford Motor Co                         7.125%  11/15/25    75
Ford Motor Co                         7.400%  11/01/46    74
Ford Motor Co                         7.700%  05/15/97    73
Ford Motor Co                         7.750%  06/15/43    74
GB Property Fndg                     11.000%  09/29/05    53
Golden Books Pub                     10.750%  12/31/04     0
Graftech Intl                         1.625%  01/15/24    74
Graftech Intl                         1.625%  01/15/24    74
GST Network Fndg                     10.500%  05/01/08     0
Gulf Mobile Ohio                      5.000%  12/01/56    75
HNG Internorth                        9.625%  03/15/06    38
Home Prod Intl                        9.625%  05/15/08    60
Inland Fiber                          9.625%  11/15/07    64
Insight Health                        9.875%  11/01/11    24
Iridium LLC/CAP                      10.875%  07/15/05    29
Iridium LLC/CAP                      11.250%  07/15/05    30
Iridium LLC/CAP                      13.000%  07/15/05    30
Iridium LLC/CAP                      14.000%  07/15/05    31
Isolagen Inc.                         3.500%  11/01/24    74
IT Group Inc                         11.250%  04/01/09     0
JTS Corp                              5.250%  04/29/02     0
Kaiser Aluminum                       9.875%  02/15/02    33
Kaiser Aluminum                      12.750%  02/01/03     9
Kellstrom Inds                        5.500%  06/15/03     0
Kmart Corp                            8.540%  01/02/15    28
Kmart Corp                            8.990%  07/05/10     4
Kmart Corp                            9.350%  01/02/20    10
Kmart Funding                         9.440%  07/01/18    23
Liberty Media                         3.750%  02/15/30    62
Liberty Media                         4.000%  11/15/29    67
Lifecare Holding                      9.250%  08/15/13    69
Macsaver Financl                      7.400%  02/15/02     4
Macsaver Financl                      7.600%  08/01/07     1
Macsaver Financl                      7.875%  08/01/03     0
Merisant Co                           9.500%  07/15/13    65
Movie Gallery                        11.000%  05/01/12    64
MSX Int'l Inc.                       11.375%  01/15/08    70
Muzak LLC                             9.875%  03/15/09    68
New Orl Grt N RR                      5.000%  07/01/32    69
Northern Pacific RY                   3.000%  01/01/47    56
Northern Pacific RY                   3.000%  01/01/47    56
Northwest Airlines                    6.625%  05/15/23    57
Northwest Airlines                    7.248%  01/02/12    20
Northwest Airlines                    7.625%  11/15/23    57
Northwest Airlines                    7.875%  03/15/08    58
Northwest Airlines                    8.700%  03/15/07    59
Northwest Airlines                    8.875%  06/01/06    56
Northwest Airlines                    9.152%  04/01/10     7
Northwest Airlines                    9.179%  04/01/10    23
Northwest Airlines                    9.875%  03/15/07    60
Northwest Airlines                   10.000%  02/01/09    58
NTK Holdings Inc                     10.750%  03/01/14    70
Nutritional Src                      10.125%  08/01/09    66
Oakwood Homes                         7.875%  03/01/04     9
Oakwood Homes                         8.125%  03/01/09     6
Oscient Pharm                         3.500%  04/15/11    67
OSU-DFLT10/05                        13.375%  10/15/09     0
Outboard Marine                       9.125%  04/15/17     0
Outboard Marine                      10.750%  06/01/08     4
Overstock.com                         3.750%  12/01/11    74
Owens Corning                         7.000%  03/15/09    56
Owens Corning                         7.500%  05/01/05    56
Owens Corning                         7.500%  08/01/18    57
Owens Corning                         7.700%  05/01/08    57
Owens-Corning Fiber                   8.875%  06/01/02    48
Pac-West-Tender                      13.500%  02/01/09    60
PCA LLC/PCA Fin                      11.875%  08/01/09    25
Pegasus Satellite                     9.625%  10/15/49    11
Pegasus Satellite                     9.750%  12/01/06    11
Pegasus Satellite                    12.375%  08/01/06    11
Pegasus Satellite                    13.500%  03/01/07     0
Phar-mor Inc                         11.720%  09/11/02     0
Piedmont Aviat                       10.250%  01/15/49     1
Piedmont Aviat                       10.250%  01/15/49     3
Pixelworks Inc                        1.750%  05/15/24    71
Plainwell Inc                        11.000%  03/01/08     2
Pliant Corp                          13.000%  07/15/10    45
Polaroid Corp                         6.750%  01/15/02     0
Primus Telecom                        3.750%  09/15/10    46
Primus Telecom                        8.000%  01/15/14    62
PSINET Inc                           10.500%  12/01/06     0
PSINET Inc                           11.000%  08/01/09     0
Radnor Holdings                      11.000%  03/15/10    20
Railworks Corp                       11.500%  04/15/09     1
Read-Rite Corp.                       6.500%  09/01/04     6
Rite Aid Corp                         6.875%  12/15/28    73
RJ Tower Corp.                       12.000%  06/01/13    22
Rotech HealthCare                     9.500%  04/01/12    70
Salton Inc                           12.250%  04/15/08    72
Solectron Corp                        0.500%  02/15/34    73
Spinnaker Inds                       10.750%  10/15/06     0
Telcordia Tech                       10.000%  03/15/13    71
Toys R Us                             7.375%  10/15/18    73
Tribune Co                            2.000%  05/15/29    66
United Air Lines                      7.870%  01/30/19    54
United Air Lines                      8.700%  10/07/08    39
United Air Lines                      9.020%  04/19/12    56
United Air Lines                      9.200%  03/22/08    49
United Air Lines                      9.350%  04/07/16    33
United Air Lines                      9.560%  10/19/18    61
United Air Lines                     10.020%  03/22/14    49
United Air Lines                     10.110%  01/05/06     3
United Air Lines                     10.110%  02/19/49    41
US Air Inc.                          10.750%  01/01/49     0
US Air Inc.                          10.750%  01/15/49    24
USAutos Trust                         5.100%  03/03/11    75
Venture Holdings                     11.000%  06/01/07     0
Venture Holdings                     12.000%  06/01/09     0
Vesta Insurance Group                 8.750%  07/15/25     9
Werner Holdings                      10.000%  11/15/07    13
Wheeling-Pitt St                      6.000%  08/01/10    70
Winn-Dixie Store                      8.875%  04/01/08    66
Winstar Comm Inc                     12.750%  04/15/10     0

                             *********

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.

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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, Jason A. Nieva, Lucilo
M. Pinili, Jr., Tara Marie A. Martin, Ronald C. Sy, 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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