/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/061101.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, November 1, 2006, Vol. 10, No. 260 Headlines ACE SECURITIES: Poor Credit Support Cues S&P to Lower Ratings ACIH INC: Deteriorating End Market Cues Moody's to Review Ratings ADSERO CORP.: Posts $10.6 Mil Net Loss in Quarter Ended June 30 ARCA FUNDING: Moody's Rates $7 Million Class VIII Notes at Ba1 ASARCO LLC: Court Extends Interim Cash Collateral Use Until Nov. 8 ASARCO LLC: Objects to the U.S. Government's Claim No. 10744 ASSET BACKED: Moody's Junks Rating on two Tranches BABSON CLO: Moody's Rates $10MM Class E Mezzanine Notes at Ba2 BAILEY EXCAVATING: Case Summary & Nine Largest Unsecured Creditors BALBOA CDO: Moody's Pares Rating on $31MM Notes to Ba2 from Baa2 BANC OF AMERICA: Fitch Assigns BB Rating to $669,000 of Certs. BEAR STEARNS: Adequate Credit Support Cues S&P to Raise Ratings BLACKROCK CAPITAL: Moody's Confirms Ba2 Rating on Class B-4 Loans BNC MORTGAGE: $16.4 Million of Certs. Get Fitch's Low-B Ratings BOFA ALT: Fitch Rates $1.5 Million Class B-5 Certificates at B BOFA MORTGAGE: Fitch Places Low-B Ratings on Two Cert. Classes BOMBARDIER INC: DBRS Confirms Senior Debentures' Rating at BB BORGER ENERGY: Quixx Reports Pending Borger Sales Pact BORALEX INC: US Subsidiary to Secure $80 Mil. Debt Financing C-BASS MORTGAGE: Fitch Places BB Rating on $9.7MM Class B Certs CASE FINANCIAL: Posts $129,465 Net Loss in Third Fiscal Quarter CDC MORTGAGE: Inadequate Credit Support Cues S&P to Junk Ratings CERADYNE INC: Regains Nasdaq Listing Compliance CHAPARRAL STEEL: Initiates Quarterly Cash Dividend COLISEUM BOOKS: Keen Selling Leasehold Interest on December 15 COMMUNICATIONS CORP: Taps Greenberg Traurig as Special Counsel COMPLETE RETREATS: Creditors Panel Gets Dec. 31 Claims Probe Date COMPLETE RETREATS: Gets Final OK to Borrow up to $80MM from Ableco CREDIT SUISSE: Fitch Rates $4.2 Million Class C-B-5 Certs at B CRESCENT RESOURCES: S&P Rates $1.225 Billion Bank Term Loan at BB CWMBS INC: Fitch Assigns BB Rating to $1 Million Class B-3 Certs DANA CORP: Carl Muney Wants Debtors Compelled to Pay $10MM Claim DANA CORP: Organ Withdraws Lift Stay Motion to Pursue Insurance DEATH ROW: Wants Virgil Roberts as Business Affairs Consultant DELPHI CORP: Judge Drain Adjourns Hearings on CBA Rejection Plea DELPHI CORP: Inks Staffing Program Pact with Fieldglass & Bartech DEUTSCHE ALT-A: Moody's Lowers Rating on Class M-3 Certs to Ba2 DEVELOPERS DIVERSIFIED: Earns $49 Mil. in Quarter Ended Sept. 30 DURA AUTOMOTIVE: S&P's Ratings Tumbles to D After Ch. 11 Filing EARTH GLOBE: Case Summary & 12 Largest Unsecured Creditors EASTMAN KODAK: Has $877MM Earnings Improvement in 3rd Quarter 2006 EL POLLO: Terminates Tender Offer for 11-3/4% and 14-1/2% Notes ELEPHANT TALK: Posts $525,855 Net Loss in 2006 Second Quarter FEDERAL-MOGUL: Ct. Denies Abex Claimants' Motion for Futures Rep. FINDEX.COM INC: Earns $861,658 in Second Quarter Ended June 30 FIRST FRANKLIN: $60.3 Mil of Class B2 Certs Get Fitch's B Rating FIRST FRANKLIN: Fitch Rates $22.3 Million Class B Certs at BB+ FIRST HORIZON: Fitch Rates $650,000 Privately Offered Class at B FREMONT HOME: Moody's Rates Class M-10 Certificates at Ba1 GANNETT PEAK: Moody's Rates $19 Million Class D-1 Notes at Ba2 GLENN UNDERWOOD: Case Summary & Five Largest Unsecured Creditors GS MORTGAGE: Fitch Places Low-B Ratings on Six Certificate Classes GSC ABS: Moody's Rates $10 Mil. Class C Subordinate Notes at Ba1 GSR MORTGAGE: Fitch Puts BB Rating on $2.75-Mil Class B-4 Certs GUITAR CENTER: Solid Operations Cue Moody's to Lift Rating H&R ELECTRIC: Case Summary & 20 Largest Unsecured Creditors HALCYON LOAN: Moody's Rates $16MM Cl. D Mezzanine Notes at Ba2 HALCYON STRUCTURED: Moody's Rates $16MM Class E Notes at Ba2 HUNTSMAN CORP: Moody's Rates Proposed $400MM Senior Notes at B3 ICEWEB INC: Posts $1.04 Mil. Net Loss in 2006 Third Fiscal Quarter INLAND FIBER: Court Approves Dechert as Bankruptcy Counsel L&M VIDEO: Case Summary & 20 Largest Unsecured Creditors LEHMAN MORTGAGE: Fitch Assigns B Rating to $3 Mil Class B7 Certs MASTR INC: Fitch Rates $3.7 Million Class B-2 Certificates at BB MCCARTY COMPANY: Voluntary Chapter 11 Case Summary MORGAN STANLEY: Subprime Deals Cue Moody's to Chip Low-B Ratings NOBLE DREW: Court Okays Slochowsky & Rappaport as Special Counsel NORTHWEST AIRLINES: Wants Boeing 787 Aircraft Agreements Approved NORTHWEST AIRLINES: Seeks Approval for Rolls-Royce Pact NORTHWEST AIRLINES: Wants to Implement Settlement Terms Under DIP OWENS CORNING: Plan Takes Effect, Emerges from Chapter 11 PAMPELONNE CDO: Moody's Rates $5 Million Class E Notes at Ba1 PAYNE TRUCKING: Case Summary & 11 Largest Unsecured Creditors PRIDE INTERNATIONAL: Earns $89.3 Million for 2006 Third Quarter RELIANCE FINANCIAL: Trustee Selling Cash Value Insurance Policies RESI FINANCE: Moody's Rates Class B9 Notes at Ba3 RESIDENTIAL ACCREDIT: Fitch Places B Rating on $3MM Private Certs RESIDENTIAL ACCREDIT: Fitch Places Low-B Ratings on $5MM of Certs RESIDENTIAL FUNDING: Fitch Rates $1.5MM Class I-B-2 Certs at B RESIX FINANCE: Moody's Rates Class B9 Notes at Ba3 RIVERCHASE COUNTRY: Case Summary & 20 Largest Unsecured Creditors S-TRAN HOLDINGS: Wants Plan-Filing Period Extended to Dec. 4 SAINT VINCENTS: Hires Pride Capital as Liquidator SEA CONTAINERS: Cha. 11 Case Cues Moody's to Junk Sr. Debt Rating SHAW COMMS: Earns $210.4 Million in Fourth Quarter Ended Aug. 31 SKYEPHARMA PLC: UBS AG No Longer Holds Notifiable Interest SOUTH CENTRAL: S&P Cuts Rating on $455K Sec. 8 Bonds to B from BB STRUCTURED ASSET: Fitch Places BB Rating on $11.9MM Class B2 Certs THOMPSON & WALTERS: Section 341(a) Meeting Scheduled on Nov. 8 TRUMP ENT: Finishes Due Diligence Relating to Diamondhead Property US LAND: Voluntary Chapter 11 Case Summary VALASSIS COMMUNICATIONS: Moody's Chips Baa3 Rating on Senior Bonds VARIG S.A.: Preliminary Injunction Continued to November 29 VARIG S.A.: Volo May Invest $173 Million to Expand Fleet WELLS FARGO: Fitch Puts B Rating on $1.5MM Class B-5 Certificates WELLS FARGO: Fitch Rates $4.8 Million Class B-5 Certificates at B WERNER LADDER: Creditors Have Until Dec. 12 to File Claims WINN-DIXIE: Files Management Security Plan Claims Objection WINN-DIXIE: Wants Court to Affirm Amount of Retirement Claims * Corporate Revitalization Elects Six New Partners * Deloitte Fin'l. Promotes 20 Professionals in its Three Divisions * Upcoming Meetings, Conferences and Seminars ********* ACE SECURITIES: Poor Credit Support Cues S&P to Lower Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on class M-6 from Ace Securities Corp. Home Equity Loan Trust Series 2004-HS1 to 'BB' from 'BBB-' and placed it on CreditWatch with negative implications. Concurrently, the rating on class M-6 from series 2004-HE1 is lowered to 'BB' from 'BBB-' and remains on CreditWatch with negative implications. At the same time, the ratings on class M-3 from series 2002-HE1 and class M-6 from series 2003-HE1 remain on CreditWatch with negative implications. Finally, ratings are affirmed on the remaining classes from these four series. The downgrades reflect actual and projected credit support percentages that are insufficient to maintain the previous ratings. Excess interest has been insufficient to cover realized losses, and the overcollateralization levels are below their targets because overcollateralization is being used to cover losses. The continued CreditWatch negative placements reflect our expectation that additional losses may result from high delinquencies for these classes. As of the September 2006 distribution date, total delinquencies, as a percentage of the current pool principal balances, were 40.40% for series 2002-HE1, 25.56% for series 2003-HE1, 29.11% for series 2004-HE1, and 31.56% for series 2004-HS1, with 23.38%, 17.31%, 20.18%, and 20.90%, respectively, categorized as seriously delinquent (90-plus-days, foreclosure, and REO). Standard & Poor's will continue to closely monitor the performance of these transactions. If the delinquent loans translate into realized losses, additional downgrades may be taken, depending on the size of the losses and the remaining credit support. In contrast, if the delinquencies decrease and do not cause significant additional losses, S&P will affirm the current ratings and remove them from CreditWatch. The rating affirmations reflect loss coverage percentages that meet or exceed the levels necessary to maintain the current ratings. These transactions benefit from credit enhancement provided by subordination, excess spread, and overcollateralization. The collateral for these transactions consists of loans secured by first liens on one- to four-family residential properties. Rating Lowered and Placed on Creditwatch Negative Ace Securities Corp. Home Equity Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2004-HS1 M-6 BB/Watch Neg BBB- Rating Lowered and Remaining on Creditwatch Negative Ace Securities Corp. Home Equity Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2004-HE1 M-6 BB/Watch Neg BBB-/Watch Neg Ratings Remaining on Creditwatch Negative Ace Securities Corp. Home Equity Loan Trust Series Class Rating ------ ----- ------ 2002-HE1 M-3 B/Watch Neg 2003-HE1 M-6 BBB-/Watch Neg Ratings Affirmed Ace Securities Corp. Home Equity Loan Trust Series Class Rating ------ ----- ------ 2002-HE1 M-1 AA+ 2002-HE1 M-2 A+ 2002-HE1 M-4 CCC 2003-HE1 M-1 AA 2003-HE1 M-2 A 2003-HE1 M-3 A- 2003-HE1 M-4 BBB+ 2003-HE1 M-5 BBB 2004-HE1 A-3 AAA 2004-HE1 M-1, M-2 AA 2004-HE1 M-3 A 2004-HE1 M-4 A- 2004-HE1 M-5 BBB+ 2004-HS1 A-1, A-2, A-3 AAA 2004-HS1 M-1 AA+ 2004-HS1 M-2 AA- 2004-HS1 M-3 A 2004-HS1 M-4 A- 2004-HS1 M-5 BBB+ ACIH INC: Deteriorating End Market Cues Moody's to Review Ratings ----------------------------------------------------------------- Moody's Investors Service placed ACIH's B2 corporate family rating under review for possible downgrade driven by the company's weakening financial performance and operating outlook, as well its diminishing liquidity profile. Moody's also downgraded the company's speculative grade liquidity rating to SGL-4 from SGL-3 driven by concerns over potential covenant violations resulting from projected weak cash flow generation relative to debt and fixed charge burdens. ACIH is an intermediate holding company that is structurally senior to Atrium Corporation, the ultimate parent company, but subordinate to Atrium Companies, Inc., the primary operating company. Moody's has placed these ratings for ACIH under review for possible downgrade: -- Corporate Family Rating, rated B2; -- Probability of Default Rating, rated B2; -- $174 million senior discount notes due 2012, rated Caa1 (LGD6, 90%). Moody's has also placed these ratings for Atrium Companies, Inc. under review for possible downgrade: -- $378.5 million senior secured term loan B, due 2012, rated B1 (LGD3, 37%); -- $50 million senior secured revolving credit facility, due 2011, rated B1 (LGD3, 37%). The Speculative Grade Liquidity assessment for ACIH was downgraded: -- Speculative Grade Liquidity Rating, downgraded to SGL-4 from SGL-3. This rating for Atrium Companies, Inc. has been withdrawn: -- $46.5 million senior secured delay term loan, rated B1 (LGD3, 37%). The review for possible downgrade is prompted by Moody's belief that the company's projected liquidity position is weak and that the company's end markets are continuing to deteriorate. Moody's also believes that there may be a need for future covenant relief, new equity capital, or both. The action is also driven by the uncertainties surrounding the company's financial profile. The review also reflects concerns surrounding the current and anticipated impact of the homebuilding slowdown on Atrium's sales and cash flow generation. The company has significant revenue contribution from markets that are currently experiencing a dramatic slowdown that will likely continue through the next 18 to 24 months; the markets include Florida, Arizona, California, and Nevada. However, Atrium also derives a significant part of its revenues from Texas and other markets that are believed to be under less pressure. Cash flow deterioration is therefore a concern. The downgrade of the speculative grade liquidity rating to SGL-4 from SGL-3 reflects Moody's expectation that the company's free cash flow generation will likely be weak over the next four quarters. The downgrade also reflects intensifying covenant pressure. Atrium has access to a $50 million revolving credit facility that is used intermittently for working capital purposes. Moody's considers the credit facility to be small relative to the company's overall size. Atrium also has access to a $60 million accounts receivable securitization facility that is being approximately utilized 70%. The withdrawal of the rating on the company's delay draw term loan is a result of the facility no longer being in place. Headquartered in Dallas, Texas, Atrium Companies, Inc., is one of the largest window manufacturers in the United States. Revenues for 2005 were $787 million. ADSERO CORP.: Posts $10.6 Mil Net Loss in Quarter Ended June 30 --------------------------------------------------------------- Adsero Corp. has filed its second quarter financial statements for the period ended June 30, 2006 with the Securities and Exchange Commission. Adsero Corp. reported a $10,661,585 net loss on $5,786,100 of revenues for the quarter ended June 30, 2006, compared to $19,051 of net income earned on $6,328,742 of revenues for the same period in 2005. At June 30, 2006, the company's balance sheet reflected $13,501,745 in total assets and $21,806,539 in total liabilities, resulting in a stockholders' deficit of $8,304,794. Additionally, accumulated deficit stood at $30,742,962 at June 30, 2006, compared to $20,081,378 as of Mar. 31, 2006. The company's June 30, 2006 balance sheet also showed strained liquidity with $5,113,417 in total current assets available to pay $18,915,861 in total current liabilities. A full-text copy of the company's second quarter financial statements is available for free at: http://researcharchives.com/t/s?1436 Going Concern Doubt Marcum & Kliegman, LLP, in New York, raised substantial doubt about Adsero Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's recurring operating losses and accumulated deficit of $19,376,401. About Adsero Corp ADSERO Corp. -- http://www.adserocorp.com/-- through its wholly owned subsidiary Teckn-O-Laser Global Company, is a North American printer cartridge re-manufacturer. The company manufactures and distributes re-manufactured toner cartridges and inkjet cartridges. These products are sold to a variety of channels such as distributors and retail office supply stores, both domestically and internationally. ARCA FUNDING: Moody's Rates $7 Million Class VIII Notes at Ba1 -------------------------------------------------------------- Moody's Investors Service reported that it assigned ratings to notes issued by Arca Funding 2006-I, Ltd. These ratings were assigned: -- Aaa to $99,500,000 Million Class II Funded Senior Notes Due 2046; -- Aa2 to $59,500,000 Million Class III Funded Senior Notes Due 2046; -- Aa3 to $17,000,000 Million Class IV Funded Senior Notes Due 2046; -- A2 to $17,000,000 Million Class V Funded Mezzanine Notes Due 2046; -- Baa2 to $17,000,000 Million Class VI Funded Mezzanine Notes Due 2046; -- Baa3 to $7,000,000 Million Class VII Funded Mezzanine Notes Due 2046 and -- Ba1 to $7,000,000 Million Class VIII Funded Mezzanine Notes Due 2046. Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Note's governing documents, and are based on the expected loss posed to the Noteholders relative to receiving the present value of such payments. The ratings of the Notes reflect the credit quality of the underlying assets -- which consist primarily of residential mortgage backed securities and ABS CDOs -- as well as the credit enhancement for the Notes inherent in the capital structure and the transaction's legal structure. This synthetic CDO is static and brought to market by Morgan Stanley. ASARCO LLC: Court Extends Interim Cash Collateral Use Until Nov. 8 ------------------------------------------------------------------ The Honorable Richard Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas in Corpus Christi extends the modified Final Cash Collateral Order for ASARCO LLC until Nov. 8, 2006, on an interim basis. Judge Schmidt rules that ASARCO LLC need not deposit any additional silver proceeds into the Mitsui & Co. (U.S.A.), Inc., Cash Collateral Account during the Interim Time Period. All amounts currently deposited in the Mitsui Cash Collateral Account will remain in the Mitsui Cash Collateral Account under the terms of the Final Cash Collateral Order during the Interim Time Period. The Court further rules that ASARCO may invest the corpus of the Mitsui Cash Collateral Account in investments consistent with Section 345 of the Bankruptcy Code, including Certificates of Deposit during the Interim Time Period. Before any changes in the types of investments, ASARCO must obtain Mitsui's prior written consent or Court approval upon motion and hearing. A final hearing on Mitsui's Motion to Extend and Modify the Final Cash Collateral Order is scheduled on Nov. 7, 2006, at 10:00 a.m. About ASARCO LLC Headquartered in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services and investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. (ASARCO Bankruptcy News, Issue No. 31; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). ASARCO LLC: Objects to the U.S. Government's Claim No. 10744 ------------------------------------------------------------ ASARCO LLC asks the Honorable Richard Schmidt of the United States Bankruptcy Court for the Southern District of Texas in Corpus Christi to: (a) disallow the U.S. Government's Proof of Claim; (b) determine that ASARCO has no obligation to backfill or revegetate Tract I and, by implication, Tract II; (c) deny the claim of damages relating to Tract III; and (d) disallow the claims of unpaid royalties, rents, interests and penalties for Tracts I and II. In 1959, Asarco Inc., predecessor in interest to ASARCO LLC, and the Department of Interior entered into two Mining Leases and 12 Business Leases with the San Xavier District of the Tohono O'odham Indian Nation and certain members of the Nation holding trust patent allotments on the Reservation. The Leases facilitate ASARCO's mining and milling operations on portions of the Mission Mine: * The Mining Leases allow ASARCO to mine and mill ore, and deposit the alluvial burden, unmilled waste rock and mill tailings on portions of the Reservation designated as "Tract I" and "Tract II," in exchange for paying the Nation and Allottees royalties on the ore production and rent for the land. * The Business Leases allow ASARCO to deposit waste rock and tailings from portions of the Mission Mine "on or adjacent to" the Reservation onto portions of the Reservation designated "Tract III," in exchange for paying the Indians rent for the land. On July 28, 2006, the United States Government, on behalf of the Interior Department and the Indians, filed Claim No. 10744 against ASARCO LLC, asserting a $5,334,000 reclamation obligation for Tract I. The Claim Amount includes: -- $3,245,000 for "earthwork," which presumably includes backfilling, and -- $836,000 for "revegetation." In addition, the U.S. Government reserves its right to make future reclamation claims on Tracts II and III for different amounts because the Mining and Business Leases for those tracts remain in effect. Judith W. Ross, Esq., at Baker Botts L.L.P., in Dallas, Texas, notes that the U.S. Government alleged that: (a) ASARCO's obligation to conduct backfilling and revegetation on Tract I derives from the lease termination provision of the Mining Leases; (b) ASARCO is liable for the payment of damages for depositing waste rock and tailings on Tract III in violation of the Business Lease provision that limits deposition to waste rock and tailings from portions of the Mission Mine "on or adjacent to" the Reservation; and (c) ASARCO owes the Indians unpaid production royalties, land rent, associated interest, and late payment penalties that became due prepetition under the Mining Leases that govern Tracts I and II. The Debtors complain that the U.S. Government's Claim overstates the cost of ASARCO's reclamation obligation for Tract I because the Mining Leases do not require backfilling or revegetation. Ms. Ross points out that the Mining Leases requires ASARCO to surrender the premises to the Indians in a condition that accounts for "the ordinary wear and tear . . . in their proper use." The Mining Leases also provides that the Indians will assume full ownership of the waste rock and tailings in the premises after ASARCO has surrendered the Leases for the Indians to realize the remaining ore value. A ruling that ASARCO has no obligation to backfill or revegetate does not mean portions of Tract I disturbed by mining, milling, waste rock and tailings would be left as is, Ms. Ross contends. Other federal regulations require ASARCO to leave Tract I in a "safe" and stable condition, as provided for in the Mining Leases. Ms. Ross relates that five years ago, the Interior Department estimated that reclamation obligation for Tract I is $760,000. In response, ASARCO posted a $760,000 bond and the Interior lifted a mining cessation order and permitted ASARCO to continue operating on Tract I. Ms. Ross asserts that the Interior's $760,000 estimate in 2001 must be given legal weight, force and effect in any assessment of ASARCO's reclamation obligation for Tract I. Any claim that substantially deviates from the $760,000 estimate without adequate justification should be disallowed, Ms. Ross adds. ASARCO complains that the U.S. Government improperly asserted contract damages for Tract III because damages are not legally available for business lease violations. Ms. Ross tells the Court that in 1985, the Interior and the Indians first alleged that ASARCO was wrongfully depositing tailings from the "Pima" ore body onto Tract III, in violation of the "adjacent" provision of the Business Leases. ASARCO argued that the "Pima" ore body was "adjacent to" the Reservation within the meaning of the Business Leases. After the parties failed to negotiate a resolution of the matter, Interior notified ASARCO in August 1991 that it was in violation of the Business Leases and ordered it to cease depositing the "Pima" tailings onto Tract III and to pay a $500 per day penalty. ASARCO also complains that the U.S. Government miscalculated royalties and rents due under the Mining Leases. ASARCO's records indicate it made minimum royalty payments on Tract I totaling $808,972 for the period from December 2001 through July 2004, at a time when there was zero production on Tract I, Ms. Ross tells the Court. In addition, the Interior decided to cancel the Mining Leases in December 2004, even though it waited until January 2005 to issue the lease cancellation notice. Thus, Ms. Ross asserts, the Royalty and Rent Claim should be reduced by $808,972, and the balance refunded to ASARCO. About ASARCO LLC Headquartered in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services and investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05-21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. (ASARCO Bankruptcy News, Issue No. 31; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). ASSET BACKED: Moody's Junks Rating on two Tranches -------------------------------------------------- Moody's Investors Service downgraded three tranches issued by Asset Backed Securities Corporation. The underlying collateral for these subprime deals consists of adjustable and fixed rate residential mortgage loans. The downgrades are based on the low credit enhancement levels compared to the current loss projections. The tranches are not performing as expected due to high delinquency percentages, loss severities, and realized losses, as well as low overcollateralization amounts. These are Moody's rating actions: * Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series 2001-HE1 -- Class B, Downgraded from Baa3 to Ba1. * Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series 2002-HE2 -- Class B, Downgraded from B2 to Caa1. * Issuer: Asset Backed Securities Corporation Home Equity Loan Trust, Series 2003-HE1 -- Class M4, Downgraded from B2 to Caa2. BABSON CLO: Moody's Rates $10MM Class E Mezzanine Notes at Ba2 -------------------------------------------------------------- Moody's Investors Service reported it assigned ratings to notes issued by Babson CLO Ltd. 2006-II. These are the rating actions: -- Aaa to $200,000,000 Million Class A-1A Senior Notes Due 2020; -- Aa1 to $22,000,000 Million Class A-1B Senior Notes Due 2020; -- Aaa to $218,000,000 Million Class A-2 Senior Notes Due 2020; -- Aa2 to $18,500,000 Million Class B Senior Notes Due 2020; -- A2 to $32,000,000 Million Class C Deferrable Mezzanine Notes Due 2020; -- Baa2 to $20,000,000 Million Class D Deferrable Mezzanine Notes Due 2020: and, -- Ba2 to $10,000,000 Million Class E Deferrable Mezzanine Notes Due 2020. The Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Notes' governing documents, and are based on the expected loss posed to Noteholders, relative to the promise of receiving the present value of such payments. The ratings reflect the risks due to the diminishment of cash flow from the underlying portfolio due to defaults, the transaction's legal structure and the characteristics of the underlying assets, consisting primarily of senior secured loans. Babson Capital Management LLC will manage the selection, acquisition and disposition of collateral on behalf of the Issuer. BAILEY EXCAVATING: Case Summary & Nine Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Bailey Excavating Co., Inc. 6250-B County Road 747 Cullman, AL 35055 Tel: (256) 739-0829 Bankruptcy Case No.: 06-82272 Type of Business: The Debtor is a gas and backfill contractor. Chapter 11 Petition Date: October 27, 2006 Court: Northern District of Alabama (Decatur) Judge: Jack Caddell Debtor's Counsel: Michael E. Lee, Esq. 200 West Side Square, Suite 803 Huntsville, AL 35801-4816 Tel: (256) 536-8213 Fax: (256) 536-8262 Total Assets: $1,421,866 Total Debts: $1,956,605 Debtor's Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Thompson Tractor Company, Inc. $401,331 P.O. Box 10367 Birmingham, AL 35202 Key Equipment Finance 2004 John Deere $332,509 600 Travis, Suite 1300 400D Articulating Secured: Houston, TX 77002 Truck $332,000 CAT Financial Services 2004 Caterpillar $263,705 Corporation 740 Articulated Secured: P.O. Box 730681 Truck $260,000 Dallas, TX 75373-0681 John Deere Credit 2004 350D $235,552 P.O. Box 650215 Articulating Truck Secured: Dallas, TX 75265-0215 $235,000 Boren Explosives Company, Inc. $139,894 8425 Highway 269 Parrish, AL 35580 Regions Bank D50 K Crawler $115,453 Mounted Blast Secured: Hole Drill $80,000 Hager Oil Company, Inc. $40,939 Warrior Tractor and Equipment $14,390 Perc Engineering Company, Inc. $6,487 BALBOA CDO: Moody's Pares Rating on $31MM Notes to Ba2 from Baa2 ---------------------------------------------------------------- Moody's Investors Service reported it has lowered the rating of one class of notes issued by Balboa CDO I, Limited. Downgrade Action: Rating action: * Tranche Description: The $31,000,000 Class B Notes due July 2014 -- Previous Rating: Baa2 on review for possible downgrade -- Current Rating: Ba2 Moody's noted that the deal, which closed in June of 2001, is currently failing: -- the Weighted Average Rating Factor Test 673, -- the Class B Overcollateralization Test 100.15%, -- the Weighted Average Coupon Test 7.52%, -- and the Weighted Average Life Test 4.482, each as reported in the Trustee Monthly Report dated September 8, 2006. Moody's stated that downgrade actions are a result of the deterioration in the collateral quality test. The Asset Manager is Pacific Investment Management Company LLC located in Newport Beach, California. Balboa CDO I represent the 12th CDO managed by PIMCO and rated by Moody's. BANC OF AMERICA: Fitch Assigns BB Rating to $669,000 of Certs. -------------------------------------------------------------- Fitch rates Banc of America Funding Corporation mortgage pass- through certificates, series 2006-7: -- $321,859,299 classes 1-A-1 through 1-A-12, 1-A-R, 30-IO, and 30-PO (senior certificates) 'AAA'; -- $8,026,000 class 1-B-1 'AA'; -- $1,839,000 class 1-B-2 'A'; -- $1,003,000 class 1-B-3 'BBB'; -- $669,000 class 1-B-4 'BB'; -- $502,000 class 1-B-5 'B'. The 'AAA' ratings on the senior certificates reflect the 3.75% subordination provided by the 2.40% class 1-B-1, the 0.55% class 1-B-2, the 0.30% class 1-B-3, the 0.20% privately offered class 1- B-4, the 0.15% privately offered class 1-B-5, and the 0.15% privately offered class 1-B-6. The ratings on class 1-B-1, 1-B-2, 1-B-3, 1-B-4, and 1-B-5 certificates reflect each certificate's respective level of subordination. Class 1-B-6 is not rated by Fitch. Fitch believes the amount of credit enhancement will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral purchased by Banc of America Funding Corporation, the integrity of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch). The collateral consists of 567 fully amortizing, fixed interest rate, first lien mortgage loans, with original terms to maturity of 240 to 360 months. The aggregate unpaid principal balance of the pool is $334,399,962 as of Oct. 1, 2006 (the cut-off date) and the average principal balance is $589,771. The weighted average original loan-to-value ratio of the loan pool is approximately 71.82; approximately 2.2% of the loans have an OLTV greater than 80%. The weighted average coupon (WAC) of the mortgage loans is 6.716% and the weighted average FICO score is 750. Cash-out and rate/term refinance loans represent 23.41% and 10.75% of the loan pool, respectively. The states that represent the largest geographic concentration are California (39.7%) and Florida (13.8%). All other states have a concentration of less than 5.0%. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. BAFC, a special purpose corporation, purchased the mortgage loans from Bank of America, National Association, MortgageIT, Inc. and SunTrust Mortgage, Inc., and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. Wells Fargo Bank N.A. will serve as master servicer and as securities administrator. U.S. Bank, N.A. will serve as trustee. For federal income tax purposes, elections will be made to treat the trust as one or more separate real estate mortgage investment conduits. BEAR STEARNS: Adequate Credit Support Cues S&P to Raise Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on three classes of commercial mortgage pass-through certificates from Bear Stearns Commercial Mortgage Securities Trust 2003-TOP10. Concurrently, ratings are affirmed on the remaining 13 classes from this transaction. The raised and affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. As of the Oct. 13, 2006, remittance report, the trust collateral consisted of 166 mortgage loans with an outstanding principal balance of $1.1 billion, compared with 168 loans with a balance of $1.2 billion at issuance. The master servicer, Wells Fargo Bank N.A., reported primarily year-end 2005 financial information for 100% of the pool. Based on this information and excluding $34.1 million (3%) in defeased collateral, Standard & Poor's calculated an adjusted weighted average debt service coverage of 1.96x for the pool, up from 1.84x at issuance. The largest loan, North Shore Towers, is secured by a cooperative residential property and was excluded from the weighted average DSC calculation. All of the loans in the pool are current, and no loans are with the special servicer, ARCap Servicing Inc. To date, the trust has not experienced any losses. The top 10 loans have an aggregate outstanding balance of $400.9 million (35%) and a weighted average DSC of 1.93x, excluding the North Shore Towers loan, up from 1.82x at issuance. At issuance, five of the top 10 loans exhibited credit characteristics consistent with investment-grade obligations, and they continue to do so. Standard & Poor's reviewed the property inspection reports provided by Wells Fargo, and all but one of the properties were reported to be in "good" condition. One property was reported to be in "fair" condition. The master servicer reported 15 loans totaling $106.2 million (9%) on its watchlist. The seventh-largest exposure ($26.3 million, 2%), 575 Broadway, is on the watchlist because of damages incurred at the collateral property from a fire in January 2006. The borrower for the 152,300-sq.-ft. retail/office property in New York, N.Y., reported a DSC of 0.80x as of March 31, 2006, compared with 1.91x at issuance. Per the master servicer, even though repairs are still ongoing, most of the tenants are in place and have commenced rental payments. The remaining loans on the watchlist have low occupancy, low DSC, and upcoming lease expirations. Standard & Poor's stressed various assets in the mortgage pool as a part of its analysis, including those on the watchlist or otherwise considered credit impaired. The resultant credit enhancement levels adequately support the raised and affirmed ratings. Ratings Raised Bear Stearns Commercial Mortgage Securities Trust 2003-TOP10 Commercial mortgage pass-through certificates series 2003-TOP10 Rating ------ Class To From Credit enhancement ----- -- ---- ------------------ B AA+ AA 10.95% C A+ A 7.65% D A A- 6.60 Ratings Affirmed Bear Stearns Commercial Mortgage Securities Trust 2003-TOP10 Commercial mortgage pass-through certificates series 2003-TOP10 Class Rating Credit enhancement ----- ------ ------------------ A-1 AAA 13.99% A-2 AAA 13.99 E BBB+ 5.28 F BBB 4.49 G BBB- 3.83 H BB+ 2.90 J BB 2.51 K BB- 1.98 L B+ 1.58 M B 1.32 N B- 1.06 X-1 AAA N/A X-2 AAA N/A N/A -- Not applicable BLACKROCK CAPITAL: Moody's Confirms Ba2 Rating on Class B-4 Loans ----------------------------------------------------------------- Moody's Investors Service confirmed the rating of BlackRock Capital Finance L.L.C. 1997-R2, Class B-4 in light of the fact that a significant proportion of the loans reported as severely delinquent are in fact cash-flowing on adjusted payment plans. This information, accompanied by historically low losses on the collateral pools, led Moody's to confirm its Ba2 rating on the tranche. This is the rating action: * Issuer: BlackRock Capital Finance L.L.C. 1997-R2 -- Cl. B-4; Confirmed Ba2. BNC MORTGAGE: $16.4 Million of Certs. Get Fitch's Low-B Ratings --------------------------------------------------------------- BNC Mortgage Loan Trust 2006-2 $790.4 million mortgage pass- through certificates, series 2006-2, are rated by Fitch: -- $637.4 million classes A1-A5 'AAA'; -- $36.1 million class M1 'AA+'; -- $31.2 million class M2 'AA'; -- $13.6 million class M3 'AA-'; -- $12.4 million class M4 'A+'; -- $12.4 million class M5 'A'; -- $8 million class M6 'A-'; -- $8.4 million class M7 'BBB+'; -- $6.4 million class M8 'BBB+'; -- $8.0 million class M9 'BBB'; -- $9.6 million class B1 'BB+' (144A); -- $6.8 million class B2 'BB' (144A). The 'AAA' rating on the class A1 through A5 certificates reflects the 20.45% total credit enhancement provided by the 4.50% class M1, 3.90% class M2, 1.70% class M3, 1.55% class M4, 1.55% class M5, 1.00% class M6, 1.05% class M7, 0.80% class M8, 1.00% class M9, the privately offered 1.20% class B1, the privately offered 0.85% B2, as well as the 1.35% initial and target overcollateralization. All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Aurora Loan Services LLC as master servicer (rated 'RMS1-' by Fitch). U.S. Bank National Association (rated 'AA-' by Fitch) will act as trustee. On the closing date, the trust fund will consist of a pool of conventional, first and second lien, adjustable- and fixed-rate, fully amortizing and balloon, residential mortgage loans with a total principal balance as of the cut-off date of approximately $801,222,604. Approximately 23.37% of the mortgage loans are fixed-rate mortgage loans, and 76.63% are adjustable-rate mortgage loans. The weighted average loan rate is approximately 8.392%. The weighted average credit score is 620, and the weighted average remaining term to maturity is 350 months. The average principal balance of the loans is approximately $214,574. The weighted average combined loan-to-value ratio is 82.01%. The properties are primarily located in California (40.09%), Florida (7.30%) and Illinois (6.41%). All of the mortgage loans were acquired by Lehman Brothers Holdings Inc. from BNC Mortgage, Inc. For federal income tax purposes, multiple real estate mortgage investment conduit elections will be made with respect to the trust estate. BOFA ALT: Fitch Rates $1.5 Million Class B-5 Certificates at B -------------------------------------------------------------- Banc of America Alternative Loan Trust 2006-8 mortgage pass- through certificates are rated by Fitch: -- $486,692,622 classes 1-A-1 to 1-A-5, 1-A-R, 2-A-1 to 2-A- 3, X-IO, X-PO, 3-A-1, and XB-IO, 'AAA' ('senior certificates'); -- $5,000,000 class M, 'AA+'; -- $5,969,000 class B-1, 'AA'; -- $4,081,000 class B-2, 'A'; -- $3,061,000 class B-3, 'BBB'; -- $2,296,000 class B-4, 'BB'; -- $1,531,000 class B-5, 'B'. The 'AAA' ratings on the senior certificates reflect the 4.60% subordination provided by the 0.98% class M, 1.17% class B-1, 0.80% class B-2, 0.60% class B-3, 0.45% privately offered class B- 4, 0.30% privately offered class B-5, and 0.30% privately offered class B-6. Classes M, B-1, B-2, B-3, and the privately offered classes B-4 and B-5 are rated 'AA+', 'AA', 'A', 'BBB', 'BB', and 'B', respectively, based on their respective subordination. Class B-6 is not rated by Fitch. The ratings also reflect the quality of the underlying collateral, the primary servicing capabilities of Bank of America Mortgage, National Association (rated 'RPS1' by Fitch), and Fitch's confidence in the integrity of the legal and financial structure of the transaction. The transaction is secured by three pools of mortgage loans. Loan groups 1, 2 and 3 are cross collateralized and supported by the B- 1 through B-6 subordinate certificates. There are 718 mortgage loans in all three groups that were underwritten using Bank of America's 'Alternative A' guidelines. These guidelines are less stringent than Bank of America's general underwriting guidelines and could include limited documentation or higher maximum loan-to-value ratios. Mortgage loans underwritten to 'Alternative A' guidelines could experience higher rates of default and losses than loans underwritten using Bank of America's general underwriting guidelines. Loan groups 1, 2 and 3, in the aggregate consist of 3,342 recently originated conventional, fixed-rate, fully amortizing, first lien, one- to four-family residential mortgage loans with remaining terms to stated maturity ranging from 115 to 480 months. The aggregate outstanding balance of the pool as of Oct. 1, 2006 (the cut-off date) is $510,161,202 with an average balance of $152,651 and a weighted average coupon of 6.956%. The weighted average original loan-to-value ratio for the mortgage loans in the pool is approximately 74.72%. The weighted average FICO credit score is 722. Second homes and investor-occupied properties comprise 6.32% and 31.11% of the loans in the group, respectively. Rate/Term and cash-out refinances account for 14.25% and 28.37% of the loans in the group, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (16.41%), Florida (14.92%), Texas (9.35%), and North Carolina (5.93%). All other states represent less than 5% of the aggregate pool balance as of the cut-off date. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. Banc of America Mortgage Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as multiple real estate mortgage investment conduits with a tiered structure. Wells Fargo Bank, National Association will act as trustee. BOFA MORTGAGE: Fitch Places Low-B Ratings on Two Cert. Classes -------------------------------------------------------------- Banc of America Mortgage Securities, Inc., series 2006-B, mortgage pass-through certificates, are rated by Fitch Ratings: -- $730,865,100 classes 1-A-1, 1-A-R, 2-A-1, 2-A-2, 3-A-1 and 4-A-1 through 4-A-4 (senior certificates) 'AAA'; -- $18,703,000 class B-1 'AA'; -- $5,343,000 class B-2 'A'; -- $3,053,000 class B-3 'BBB'; -- $1,909,000 class B-4 'BB'; -- $1,526,000 class B-5 'B'. The 'AAA' rating on the senior certificates reflects the 4.25% subordination provided by the 2.45% class B-1, the 0.70% class B- 2, the 0.40% class B-3, the 0.25% privately offered class B-4, the 0.20% privately offered class B-5, and the 0.25% privately offered class B-6. The ratings on class B-1, B-2, B-3, B-4, and B-5 certificates reflect each certificate's respective level of subordination. Class B-6 is not rated by Fitch. The ratings also reflect the quality of the underlying mortgage collateral, the primary servicing capabilities of Bank of America Mortgage, Inc. (rated 'RPS1' by Fitch) and Fitch's confidence in the integrity of the legal and financial structure of the transaction. The transaction consists of four groups of adjustable interest rate, fully amortizing mortgage loans, secured by first liens on one- to four-family properties, with a total of 1,223 loans and an aggregate principal balance of $763,308,015 as of Oct. 1, 2006. The four loan groups are cross-collateralized. The collateral consists of 3/1 (Group 1), 5/1 (Group 2), 7/1 (Group 3), and 10/1 (Group 4) hybrid adjustable-rate mortgage loans. After the initial fixed interest rate period of three, five, seven, and ten years respectively, the interest rate will adjust annually based on the sum of one-year LIBOR index and a gross margin specified in the applicable mortgage note. Approximately 75.6% of all the loans require interest-only payments until the month following the first adjustment date. As of the cut-off date, the deal has an aggregate principal balance of approximately $763,308,015 and an average balance of $624,128. The weighted average original loan-to-value ratio for the mortgage loans is approximately 72.70% and approximately 1.42% of the loans have an OLTV greater than 80%. The weighted average remaining term to maturity is 362 months, and the weighted average FICO credit score for the group is 742. Rate/term and cash-out refinances account for 21.88% and 20.65% of the loans, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (59.77%) and Florida (5.87%). All other states represent less than 5% of the outstanding balance of the group. None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. Banc of America Mortgage Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as one or more real estate mortgage investment conduits. Wells Fargo Bank, National Association will act as trustee. BOMBARDIER INC: DBRS Confirms Senior Debentures' Rating at BB ------------------------------------------------------------- Dominion Bond Rating Service confirmed the ratings of Bombardier Inc. and Bombardier Capital Ltd. The Senior Unsecured Debentures of both Bombardier Inc. and Bombardier Capital Ltd. are confirmed at BB, and Preferred Shares of Bombardier Inc. at Pfd-4. All trends are Negative. The credit outlook remains negative, as several elements of uncertainty -- both operational and financial -- surround Bombardier. Foremost, in DBRS's view, the Company has not articulated a turnaround strategy for its struggling regional jet business, where shifting market dynamics continue to depress this sector. The viability of several U.S. regional airlines is in question as some have not emerged from bankruptcy protection and some contend with untenable cost structures. This has resulted in diminished aircraft orders in recent years. Although some aircraft with favorable economics, such as 100 plus seat regional jets, are experiencing robust demand, Bombardier is at a competitive disadvantage because it does not manufacture this size aircraft. Chief rival, Embraer, has become a more formidable competitor and has had success with its 100 plus seat jets. For example, as of the recent quarter-end, regional jet backlog for Bombardier was 73 and for Embraer was 359. While Bombardier is currently reviewing plans to introduce a comparable jet, DBRS believes that stretching the CRJ900 would be a temporary solution and will still leave the Company vulnerable in this segment. Furthermore, Embraer has first-mover advantage, which enables it to bolster its market presence in the meantime. The credit profile is also pressured by high financial risk, despite recent improvement in ratios due to debt reduction and margin expansion. Total debt levels remain excessive, and EBITDA interest coverage is weak at 2.78x. However, it appears that the Company is committed to reducing debt, which should be facilitated by expected free cash flow over the near term. In addition, its debt maturity schedule is manageable, and liquidity is reasonable with $3.2 billion available, which broadens financial flexibility. Overall, the ratings remain sensitive and could be downgraded if Bombardier doesn't gain traction in the regional jet segment over the near term or if cash flow diminishes. This underscores the importance of solid performance in Bombardier's other major businesses: the business jet business has had very strong growth, which is expected to continue over the near term; the transportation business appears to have stabilized with cost control. Both are key to underpinning Bombardier's credit profile. BORGER ENERGY: Quixx Reports Pending Borger Sales Pact ------------------------------------------------------ Quixx Corporation, a subsidiary of Xcel Energy, Inc., disclosed that it has a definitive agreement for the sale of its interest in Borger Energy Associates and Quixx Power Services, Inc. to affiliates of Energy Investors Funds. Borger Energy Associates owns Blackhawk Generating Station, a 225 megawatt cogeneration facility located in Borger, Texas. Quixx Power Services, Inc. provides operational services to the Blackhawk station as well as the Crockett Cogeneration facility located in Crockett, Calif. The transaction is expected to be completed by year-end, subject to certain consents and notifications. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Moody's Investors Service affirmed Borger Energy Associates, L.P.'s 7.26% first mortgage bonds due 2022 at Ba3 following the announcement by Quixx Corporation that it has reached a definitive agreement for the sale of its interests in Borger to affiliates of Energy Investors Funds. The rating outlook is stable. BORALEX INC: US Subsidiary to Secure $80 Mil. Debt Financing ------------------------------------------------------------ Boralex Inc.'s U.S. subsidiary, Boralex Industries Inc., anticipates securing an $80 million debt financing. The financing would have a term of seven years, and would be secured by the US hydro assets and US biomass assets of Boralex Industries, as well as certain payments made under the monetization of its US production tax credits described below. Proceeds from the financing would be used to retire $5 million of existing debt and for general corporate purposes. Boralex also disclosed that it is continuing to pursue transaction described which would result in the monetization of the renewable energy US production tax credits to which Boralex Industries is entitled over the period beginning at closing of the transaction and concluding on Dec. 31, 2009 (the date of the conclusion of the program). The Transaction would result in the transfer to investors of indirect equity interests in the US biomass facilities, and the receipt by Boralex Industries of $15 million cash at closing and a $13.3 million contingent payment note. Boralex Industries has call rights to buy back the biomass assets at certain times and for certain amounts exercisable following the repayment of the contingent note. Boralex would operate the biomass facilities pursuant to an operation and maintenance agreement. Boralex anticipates closing the transactions by the end of November 2006, subject to the completion of definitive documentation and the satisfaction of customary closing conditions. Boralex Inc. -- http://www.boralex.com/-- focuses on four types of power generation: hydroelectric power, thermal or cogeneration power from natural gas or wood residue, and wind power. Boralex employs about 277 workers and owns 20 power stations in Quebec, the United States and France, with an installed capacity of 315 MW. Boralex also owns an urban wood processing and recycling center located in Montreal. In addition, Boralex holds a 23% interest in Boralex Power Income Fund which owns 10 power stations in Quebec and the United States with an installed capacity of close to 190 MW. Management of the Fund's assets is provided by Boralex. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Standard & Poor's Ratings Services assigned its preliminary 'B+' rating and a '4' recovery rating to Boralex Investment L.P.'s proposed $80 million secured term loan B due on the seventh anniversary of closing in 2013. As reported in the Troubled Company Reporter on Oct. 26, 2006, Moody's Investors Service assigned a Ba3 rating to Boralex Investment LP's proposed $80 million senior secured term loan due October 2013. The rating outlook is stable. C-BASS MORTGAGE: Fitch Places BB Rating on $9.7MM Class B Certs --------------------------------------------------------------- C-BASS mortgage loan asset-backed certificates, series 2006-CB8, are rated by Fitch: -- $407,334,000 class A senior certificates 'AAA'; -- $22,296,000 class M-1 'AA+'; -- $30,012,000 class M-2 'AA+'; -- $11,436,000 class M-3 'AA'; -- $11,719,000 class M-4 'AA-'; -- $13,720,000 class M-5 'A+'; -- $8,003,000 class M-6 'A'; -- $10,576,000 class M-7 'A-'; -- $2,858,000 class M-8 'BBB+'; -- $15,435,000 class B-1 'BBB'; -- $10,576,000 class B-2 'BBB-'; -- $9,718,000 class B-3 'BB'. The 'AAA' rating on the senior certificates reflects the 28.75% initial credit enhancement provided by the 3.90% class M-1, 5.25% class M-2, 2.00% class M-3, 2.05% class M-4, 2.40% class M-5, 1.40% class M-6, 1.85% class M-7, 0.50% class M-8, 2.70% privately offered class B-1, 1.85% privately offered class B-2, 1.70% privately offered class B-3, and over-collateralization. The initial and target OC is 3.15%. All certificates have the benefit of excess interest. In addition, the ratings also reflect the quality of the loans, the soundness of the legal and financial structures, and the capability of Litton Loan Servicing LLP (rated 'RPS1' by Fitch) as servicer. The collateral pool consists of 2,628 fixed- and adjustable-rate mortgage loans and totals $571.7 million as of the cut-off date. The weighted average loan-to-value ratio is 83.27%. The average outstanding principal balance is $217,541, the weighted average coupon is 8.175% and the weighted average remaining term to maturity is 352 months. The weighted average credit score is 629. The loans are geographically concentrated in California (38.13%), Florida (17.02%) and Arizona (4.86%). The mortgage loans in the mortgage pool were originated or acquired by various mortgage loan originators. Approximately 29.26%, 29.11%, and 13.28% of the mortgage loans were originated by Ameriquest Mortgage Company, OwnIT Mortgage Solutions Inc, and NC Capital Corporation, respectively. The remaining mortgage loans were originated by mortgage loan originators that each originated less than 10% of the entire pool of mortgage loans. CASE FINANCIAL: Posts $129,465 Net Loss in Third Fiscal Quarter --------------------------------------------------------------- Case Financial Inc. has filed its third fiscal quarter financial statements for the period ended June 30, 2006 with the Securities and Exchange Commission. The company reported a $129,465 net loss on zero revenues for the third quarter ended June 30, 2006, compared to a $291,762 net loss on $7,125 of revenues for the same period in 2005. At June 30, 2006, the company's balance sheet reflected $1,916,957 in total assets and $4,249,770 in total liabilities, resulting in a $2,332,813 stockholders' deficit. Accumulated deficit stood at $11,687,456 as of June 30, 2006. Going Concern Doubt As reported in the Troubled Company Reporter on March 14, 2006, Kabani & Company, Inc., expressed substantial doubt about Case Financial's ability to continue as a going concern after auditing the company's financial statements for the years ended Sept. 30, 2005, and 2004. The auditing firm pointed to the company's net losses and accumulated deficits for the years ended Sept. 30, 2005, and 2004. A full-text copy of the company's third quarter financial statements is available for free at: http://researcharchives.com/t/s?1434 About Case Financial Case Financial Inc. -- http://www.casefinancial.com/-- provided pre-settlement and post-settlement litigation funding services to attorneys involved in personal injury and other contingency litigation, conducted primarily within the California courts. On Sept. 30, 2005, the company's Board of Directors approved a resolution to discontinue the company's further investment in its Litigation Finance Business other than the collection or other disposition of the company's existing loan and investment portfolio. CDC MORTGAGE: Inadequate Credit Support Cues S&P to Junk Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on class B-2 from CDC Mortgage Capital Trust 2003-HE1 to 'CCC' from 'B'. The rating remains on CreditWatch, where it was placed with negative implications Sept. 29, 2006. In addition, the ratings on class B from series 2001-HE1, class M-2 from series 2002-HE2, class B-1 from series 2002-HE3, and class B-1 from series 2003-HE1 remain on CreditWatch with negative implications. At the same time, ratings are affirmed on the remaining classes from these four series. The lowered rating reflects actual and projected credit support percentages that are insufficient to maintain the previous rating. Excess interest has been insufficient to cover realized losses. The overcollateralization level for this class is below its target because overcollateralization is being used to cover losses. The affirmed ratings reflect loss coverage percentages that meet or exceed the levels necessary to maintain the current ratings. The continued CreditWatch negative placements reflect our expectation that additional losses may result from high delinquencies for these classes. As of the September 2006 distribution date, total delinquencies, as a percentage of the current pool principal balances, were 46.91% for series 2001-HE1, 38.00% for series 2002-HE2, 36.29% for series 2002-HE3, and 28.61% for series 2003-HE1, with 31.40%, 27.16%, 20.24%, and 15.14%, respectively, categorized as seriously delinquent (90-plus-days, foreclosure, and REO). Standard & Poor's will continue to closely monitor the performance of these transactions. If the delinquent loans translate into realized losses, additional downgrades may be taken, depending on the size of the losses and the remaining credit support. In contrast, if the delinquent loans decrease and do not cause significant additional losses, we will affirm the current ratings and remove them from CreditWatch. These transactions benefit from credit enhancement provided by subordination, excess spread, and overcollateralization. The collateral for all of the transactions consists of pools of fixed- and adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties. Rating Lowered and Remaining on Creditwatch Negative CDC Mortgage Capital Trust 2003-HE1 Rating Series Class To From ------ ----- -- ---- 2003-HE1 B-2 CCC/Watch Neg B/Watch Neg Ratings Remaining on Creditwatch Negative CDC Mortgage Capital Trust Series Class Rating ------ ----- ------ 2001-HE1 B B/Watch Neg 2002-HE2 M-2 A/Watch Neg 2002-HE2 B-1 B/Watch Neg 2002-HE2 B-2 CCC/Watch Neg 2002-HE3 M-2 A/Watch Neg 2002-HE3 B-1 B/Watch Neg 2002-HE3 B-2 CCC/Watch Neg 2003-HE1 B-1 BB/Watch Neg Ratings Affirmed CDC Mortgage Capital Trust Series Class Rating ------ ----- ------ 2001-HE1 M-1 AAA 2001-HE1 M-2 A 2002-HE2 M-1 AA 2002-HE3 M-1 AA+ 2003-HE1 M-1 AA+ 2003-HE1 M-2 A 2003-HE1 M-3 A- CERADYNE INC: Regains Nasdaq Listing Compliance ----------------------------------------------- Ceradyne, Inc., reported that as a result of filing its Form 10-Q report for the quarter ended June 30, 2006 with the Securities and Exchange Commission on October 24, 2006, it is now in compliance with the requirements for continued listing on The Nasdaq Global Select Market. As reported in the Troubled Company Reporter on Aug. 25, 2006, Ceradyne, Inc., requested a hearing before the Nasdaq Listing Qualifications Panel in response to its receipt of a Nadaq Staff Determination. The Company disclosed that a special committee of independent directors was formed to conduct an internal investigation of the Company's historical stock option grants and related accounting treatment. The Special Committee has completed its review of historical stock option grants and has concluded that the use of the date specified in each unanimous written consent as the accounting measurement date was incorrect in all but one case and that the proper accounting measurement date is the date the unanimous written consent was finalized and signed by the members of the Stock Option Committee. As a result of using the revised measurement dates for options granted from January 1997 through September 2003, the Company recorded a pre-tax charge in the second quarter of 2006 of $3.4 million, including a non-cash compensation expense of $2.2 million and $1.2 million of estimated additional employment and other taxes that are expected to become payable. The Company disclosed that the Special Committee and the Board of Directors concluded that the accounting errors resulting from the use of incorrect measurement dates for options granted between January 1997 and September 2003 were not the product of any deliberate or intentional misconduct by the Company or its executives, staff or Board of Directors. It also has concluded that no prior period financial statements require restatement relative to using the revised measurement dates for stock option grants. The Company also disclosed that all its current executive officers and its Board of Directors voluntarily have amended all of their unexercised stock options and also that four shareholder derivative lawsuits have been filed against several of its current and former directors and executive officers. The complaints assert claims for breaches of fiduciary duty by directors and executive officers related to backdating of stock options. The Company intends to take all appropriate action in response to the lawsuits. The SEC, the Company further disclosed, has informally requested information about its internal review of historical stock option grants and it intends to fully cooperate with the SEC. Based in Costa Mesa, California, Ceradyne, Inc., (Nasdaq: CRDN) -- http://www.ceradyne.com/-- develops, manufactures and markets advanced technical ceramic products and components for defense, industrial, automotive/dieseland consumer applications. * * * As reported in the Troubled Company Reporter on July 24, 2006, Ceradyne's $50 million revolving credit facility due 2009 carries Standard & Poor's BB- rating. The Company's credit rating is also rated BB- by Standard & Poor's. CHAPARRAL STEEL: Initiates Quarterly Cash Dividend -------------------------------------------------- Chaparral Steel Company's Board of Directors has authorized the initiation of a $0.10 per common share quarterly cash dividend and the repurchase of up to $100 million of the Company's common stock from time to time. The initial quarterly dividend will be payable on Nov. 15, 2006 to shareholders of record on Nov. 1, 2006. "Based on our strong cash flow, and our optimism for our business and industry, we believe this is an ideal time to begin returning capital to our shareholders in the form of a quarterly cash dividend," stated Tommy A. Valenta, President and Chief Executive Officer. The share repurchase program will be undertaken through open market and privately negotiated transactions in accordance with applicable federal securities laws. The timing and amount of any repurchases will be determined by the Company based on a variety of factors including share price, market conditions, other capital allocation alternatives, corporate and regulatory requirements, capital availability, and other factors. The new share repurchase program does not require the Company to acquire any specific number of shares and may be modified, suspended, extended or terminated by the Company at any time without prior notice. Chaparral Steel Company -- http://www.chapusa.com/-- headquartered in Midlothian, Texas, is the second largest producer of structural steel beams in North America. Chaparral is also a significant supplier of steel bar products. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Standard & Poor's Ratings Service upgraded its corporate credit rating on Chaparral Steel to 'B+' from 'B'. At the same time, Standard & Poor's raised the ratings on the company's bank loan to 'BB' from 'BB-' and affirmed the recovery rating of '1', which indicates expectations of full recovery of principal in the event of a payment default. The outlook is stable. As reported in the Troubled Company Reporter on Oct. 18, 2006, 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 Chaparral Steel Company. COLISEUM BOOKS: Keen Selling Leasehold Interest on December 15 -------------------------------------------------------------- Coliseum Books Inc. and Coliseum Books & Cafe LLC have retained Keen Realty LLC to market its leasehold interest in 10,449 sq. ft. of retail space, plus 3,500 sq. ft. of basement, located in the heart of mid-town Manhattan at 11 West 42nd Street. The site is surrounded by many major retailers and is within walking distance to the Fifth Avenue retail corridor and is steps from Times Square. Keen's marketing efforts will culminate in an auction on Dec. 15, 2006, subject to Bankruptcy Court approval. Available for assignment is the leasehold interest in 10,449 sq. ft. of ideally situated retail space on 42nd Street between 5th and 6th Avenues, directly across from Bryant Park. "This is a great opportunity for retailers to secure a presence in the thriving mid-town Manhattan market" said Matthew Bordwin, Keen Realty's Executive Vice President. "The rent on this space is below market at $76.08 sq. ft. and there are seventeen years remaining on the lease term. This is one of the best retail locations in all of Manhattan. We are encouraging interested parties to contact us immediately for additional information," Bordwin added. Keen Realty LLC is a consulting firm specializing in the disposition of excess real estate assets for companies in bankruptcy or restructuring situations. Other current and recent clients of Keen include Perfect Picture, Arthur Andersen, Parmalat, Fleming Companies, Huffman Koos, Just for Feet, Pillowtex, Spiegel/Eddie Bauer, and Warnaco. For more information regarding the lease, contact: Keen Realty LLC Suite 214, 60 Cutter Mill Road Great Neck, NY 11021 Tel: 516-482-2700 ext. 226 Fax: 516-482-5764 Headquartered in New York City, Coliseum Books Inc. filed for chapter 11 protection on Sept. 28, 2006 (U.S. Bankr. S.D.N.Y. Case No. 06-12276). Alan E. Gamza, Esq., at Moses & Singer LLP represents the Debtor in its restructuring efforts. COMMUNICATIONS CORP: Taps Greenberg Traurig as Special Counsel -------------------------------------------------------------- Communications Corporation of America and its debtor-affiliates ask the U.S. Bankruptcy Court for the Western District of Louisiana for permission to employ Greenberg, Traurig, LLP, as their special counsel. Greenberg Traurig will: a) advise and represent the Debtors with respect to all aspects of securities, general corporate, finance, and other business matters; b) advise and represent the Debtors with respect to related matters as they arise at the Debtors' request; and c) assist the Debtors' reorganization attorneys from time to time. The firm's professionals bill: Professionals Designation Hourly Rate ------------- ----------- ----------- James S. Altenbach, Esq. Shareholder $435 Stacey O. Gallant, Esq. Shareholder $425 Alexander McCain, Esq. Associate $220 Sandra Blake, Esq. Paralegal $160 Greenberg Traurig tells the Court that it received $156,000 from the Debtors for services rendered a year before their bankruptcy filing. James S. Altenbacg, Esq., assures the Court that his firm does not hold any interest adverse to the Debtors, its estate and creditors. Mr. Altenbach can be reached at: James S. Altenbach, Esq. Greenberg, Traurig, LLP 3290 Northside Parkway, Suite 400 Atlanta, Georgia 30327 Tel: (678) 553-2100 Fax: (678) 553-2212 http://www.gtlaw.com/ Headquartered in Lafayette, Louisiana, Communications Corporation of America, is a media and broadcasting company. Along with media company White Knight Holdings, Inc., it owns and operates around 23 TV stations in Indiana, Texas and Louisiana. Communications Corporation and 10 of its affiliates filed for bankruptcy protection on June 7, 2006 (Bankr. W.D. La. Case Nos. 06-50410 through 06-50421). Douglas S. Draper, Esq., William H. Patrick III, Esq., and Tristan Manthey, Esq., at Heller, Draper, Hayden, Patrick & Horn, LLC, represents Communications Corporation and its debtor-affiliates. When Communications Corporation and its debtor-affiliates filed for protection from their creditors, they estimated assets and debts of more than $100 million. COMPLETE RETREATS: Creditors Panel Gets Dec. 31 Claims Probe Date ----------------------------------------------------------------- The Honorable Alan H.W. Shiff extended the time for the Official Committee of Unsecured Creditors in Complete Retreats LLC and its debtor-affiliates' chapter 11 cases to investigate and bring claims relating to the prepetition liens and with respect to The Patriot Group LLC through and including Dec. 31, 2006. The Committee may take discovery of Patriot in furtherance of its investigation, provided that the Committee may not prosecute any action against Patriot that would result in a material obligation of the Debtors to pay current legal fees or expenses or give rise to an indemnification claim by Patriot against the Debtors, until the Postpetition Obligations are paid in full. The Committee waives any right to seek a further extension of the Objection Period and no further extension of the Objection Period will be granted without Patriot's prior written consent. As reported in the Troubled Company Reporter on Oct. 30, 2006, the Creditors Committee further asked the Court to extend the time for it to investigate and bring claims relating to the prepetition liens and conduct of the Debtors' prepetition lenders through and including Dec. 2, 2006. The Creditors Committee previously obtained an Oct. 26, 2006 deadline to file its objections to the Debtors' loan agreements with The Patriot Group LLC and LPP Mortgage Ltd. The Committee has uncovered allegations of wrongdoing associated with the Debtors' prepetition financing, according to Jonathan B. Alter, Esq., at Bingham McCutchen LLP, in Hartford, Connecticut. Mr. Alter explained that the investigation of the Lenders must run in tandem with the broader investigation of the extent of any wrongdoing related to the Debtors' prepetition management and operations, which have just commenced and will take additional time to complete. In furtherance of its investigation, the Committee has made informal requests for information to, and has received documents from, the DIP Lenders, Mr. Alter told the Court. The Committee has also obtained the Court's permission to conduct examinations pursuant to Rule 2004 of the Federal Rules of Bankruptcy Procedure on John Howe, a former officer of The Patriot Group, LLC, and various former officers and employees of the Debtors. About Complete Retreats Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). COMPLETE RETREATS: Gets Final OK to Borrow up to $80MM from Ableco ------------------------------------------------------------------ The Honorable Alan H.W. Shiff of the U.S. Bankruptcy Court for the District of Connecticut authorized Complete Retreats LLC and its debtor-affiliates to borrow up to $80,000,000 from Ableco Finance, LLC, as administrative and collateral agent, and certain other lenders, on a final basis. All objections to the Ableco DIP Financing have been withdrawn or overruled. The Court permits the Debtors to repay prepetition obligations and existing DIP obligations, which payments will be without prejudice to the rights of the Debtors, the Official Committee of Unsecured Creditors or any other party-in-interest. Each Prepetition Lender and each Existing DIP Lender will provide the Debtors, no later than 3:00 p.m. on the business day immediately preceding the Closing of the Ableco DIP Financing Facility, a written pay-off letter setting forth their Prepetition Indebtedness or Existing DIP Indebtedness. The Court notes that LPP Mortgage Ltd. delivered its proposed pay-off statements to the Debtors, the Creditors Committee, and Ableco on Oct. 27, 2006. With the first advance of funds under the Ableco DIP Financing Facility, Judge Shiff directs the Debtors to pay, in full, to each Prepetition Lender and each Existing DIP Lender their full Pay-Off Amount. Judge Shiff authorizes the Debtors to withhold payment of $2,000,000 to The Patriot Group LLC. The Holdback will accrue interest at the rate specified in the Patriot Prepetition Loan Documents. The Court preserves the Creditors Committee's rights to challenge the Pay-Off Amounts and the reasonableness of any professional fees, expenses or claim for payment of interest at a default rate. As adequate protection for the diminution in the value of Patriot's interest in the Patriot Prepetition Collateral, and to secure the prompt payment and performance of the Holdback and all other Remaining Patriot Prepetition Indebtedness and Remaining Existing DIP Loan Obligations owed to Patriot, the Court grants Patriot the Patriot Replacement Lien and the Patriot Super- Priority Claim that is equal or subordinate only to the Carve-Out and the Super-Priority Claims of Ableco and the Postpetition Lenders. Judge Shiff also authorizes the Debtors to pay homeowner association fees, condominium fees and similar fees that accrued prepetition, up to $80,000, in connection with obtaining title insurance with respect to the closing of Ableco DIP Financing Facility that is proposed to occur on October 31, 2006. The Final DIP Order is without prejudice to Christopher Stevens' rights to pursue claims for the imposition of a constructive trust with respect to funds he paid to the Debtors amounting to $750,000. The term of the Ableco DIP Facility will be through the earliest of: (i) April __, 2008; (ii) the date of substantial consummation of a confirmed plan of reorganization; or (iii) the date on which the loans become due and payable in accordance with the terms of the loan documents. A full-text copy of the Final DIP Order on the Ableco DIP Financing Facility is available for free at: http://researcharchives.com/t/s?143f A full-text copy of the Approved Ableco DIP Financing Facility is available for free at: http://researcharchives.com/t/s?1440 As reported in the Troubled Company Reporter on Oct. 13, 2006, the Court approved Ableco's commitment letter providing the Debtors a replacement credit facility. Accordingly, the Court authorized the Debtors to pay Ableco: (a) an $800,000 commitment fee; and (b) an additional $100,000 deposit to cover Ableco's reasonable fees and expenses, including reasonable attorneys' fees and expenses and due diligence fees and expenses incurred in connection with the negotiation, preparation, execution and delivery of the Commitment Letter, the related term sheet, and any and all definitive documentation. The Court also authorized the Debtors and Ableco to amend or modify the Commitment Letter without further Court order, provided that any modification is non-material and are not adverse to the Debtors and their estates. As reported in the Troubled Company Reporter on Oct. 10, 2006, the Court's final order on the Debtors' existing DIP Financing Agreement with The Patriot Group, LLC, and LPP Mortgage, Ltd., requires the Debtors to obtain replacement DIP financing sufficient to "take out" Patriot and LPP Mortgage by Oct. 31, 2006. Otherwise, Patriot and LPP Mortgage will be authorized, under certain conditions, to foreclose on the Debtors' assets. The Debtors have solicited interest in providing a replacement credit facility from numerous potential postpetition lenders. The Debtors received draft commitment letters from two potential lenders, one from Ableco Finance LLC. The Debtors believe that the terms of the credit facility proposed by Ableco are more favorable than the proposed credit facility of the other potential lender. Subsequently, the Debtors and Ableco executed a DIP Financing Commitment Letter on Oct. 4, 2006. The Commitment Letter contemplates that the Debtors and Ableco will enter into a credit facility of up to $80,000,000, comprised of a term loan of up to $50,000,000 and a revolver of up to $30,000,000. The Ableco Commitment Letter requires the Debtors to pay an $800,000 non-refundable commitment fee to Ableco. It also requires that the Debtors pay Ableco's reasonable fees and expenses, including its reasonable attorneys' and due diligence fees and expenses incurred in connection with the negotiation, preparation, execution and delivery of the Commitment Letter, the related term sheet, and any related definitive documentation. To cover those fees and expenses, the Debtors would pay Ableco a $100,000 deposit upon approval of the Commitment Letter. Moreover, the Ableco Committee Letter requires the Debtors to indemnify Ableco and certain related parties for any losses arising out of the Commitment Letter or the contemplated financing, except to the extent resulting solely from the indemnified party's gross negligence or willful misconduct. A full-text copy of the Ableco Commitment Letter is available for free at http://researcharchives.com/t/s?1326 Terms of Ableco's Proposed DIP Financing The proceeds of the Loans under the Ableco Facility will be used to: (a) refinance the Debtors' existing secured credit facilities in the aggregate principal amount of up to $74,000,000; (b) fund working capital and general corporate expenses in the ordinary course of business of the Debtors, all in accordance with the Budget; and (c) pay fees and expenses related to the Financing Facility, in all cases subject to the Courts' approval. The Debtors' obligations under the Ableco Facility will be secured by first priority liens on, and security interests in, all assets of the Debtors. The DIP Liens will be subject to a $1,250,000 carve-out for professional fees, and fees payable to the U.S. Trustee and the Clerk of Court. At the Debtors' option, the Loans will bear interest at a rate per annum equal to either: (i) the rate of interest publicly announced from time to time by JPMorgan Chase Bank in New York -- provided that at no time the Reference Rate be less than 8.25 -- plus 4.75%; or (ii) LIBOR plus 7.75%. All Loans are to be repaid in full at the earliest of: (i) the date which is 18 months after the date of the Final DIP Order; (ii) the date of substantial consummation of a plan of reorganization in the Debtors' cases, which has been confirmed by the Court; or (iii) the date on which the Loan will become due and payable in accordance with the terms of the Loan Documents. An Event of Default will occur if, among others: -- any of the Debtors' cases will be dismissed or converted to a Chapter 7 case; -- a Chapter 11 trustee or examiner with enlarged powers will be granted; -- any other superpriority administrative expense claim will be granted; or -- the Court will enter an order granting relief of the automatic stay to the holder of any security interest in any asset of the Debtors having a book value equal to or exceeding $250,000 in the aggregate. No later than Jan. 1, 2007, the Debtors will be required to: (i) have a plan of reorganization filed which, among other items, provides for the repayment in full of the Financing Facility; or (ii) retain an auctioneer acceptable to the Lenders and commence a process of marketing for sale of the Debtors' real estate assets. If a plan of reorganization is filed on or before Jan. 1, 2007, the Debtors will be required to have that plan confirmed no later than March 1, 2007. The Closing Date is the date on which all definitive loan documentation satisfactory to the Lenders is executed by the Debtors and the Lenders, which date will not be later than Oct. 31, 2006, on or after the date the Court has entered the Final DIP Order. The Ableco Facility also provides for an $800,000 non-refundable Closing Fee. Debtors File Cash Flow Forecast In connection with the proposed Replacement DIP Financing from Ableco, the Debtors delivered to the Court, on Oct. 24, 2006, a 13-week budget ending Jan. 19, 2007, and a six-month budget for the period October 2006 to March 2007. A full-text copy of the 13-Week Budget is available for free at: http://researcharchives.com/t/s?1405 A full-text copy of the 6-Month Budget is available for free at: http://researcharchives.com/t/s?1406 About Complete Retreats Headquartered in Westport, Connecticut, Complete Retreats LLC operates five-star hospitality and real estate management businesses. In addition to its mainline destination club business, the Debtor also operates an air travel program for destination club members, a villa business, luxury car rental services, wine sales services, fine art sales program, and other amenity programs for members. Complete Retreats and its debtor- affiliates filed for chapter 11 protection on July 23, 2006 (Bankr. D. Conn. Case No. 06-50245). Nicholas H. Mancuso, Esq. and Jeffrey K. Daman, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. Michael J. Reilly, Esq., at Bingham McCutchen LP, in Hartford, Connecticut, serves as counsel to the Official Committee of Unsecured Creditors. No estimated assets have been listed in the Debtors' schedules, however, the Debtors disclosed $308,000,000 in total debts. (Complete Retreats Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). CREDIT SUISSE: Fitch Rates $4.2 Million Class C-B-5 Certs at B -------------------------------------------------------------- Credit Suisse Mortgage Securities Corp. mortgage pass-through certificates, series 2006-9, is rated by Fitch Ratings: -- $830.72 million classes 1-A-1, 2-A-1, 3-A-1, 4-A-1 through 4-A-15, 5-A-1, 6-A-1 through 6-A-15, 7-A-1, 7-A-2, A-X, D- X, DP, AR, and AR-L(senior certificates) 'AAA'; -- $11.35 million class C-B-1 'AA'; -- $3.70 million class C-B-2 'A'; -- $6.409 million classes C-B-3 and D-B-3 'BBB'; -- $1.182 million class D-B-4 'BBB-'; -- $4.979 million classes C-B-4 and D-B-5 'BB'; -- $4.239 million classes C-B-5 and D-B-6 'B'. The 'AAA' rating on the senior certificates for groups 1 through 4, and the AR, D-X, DP, and AR-L certificates reflect the 8.75% subordination provided by the 3.85% class D-B-1, 1.60% class D-B- 2, 1.00% class D-B-3, 0.30% class D-B-4, 0.70% class D-B-5, 0.70% class D-B-6, and the 0.60% class D-B-7 (not rated by Fitch). The 'AAA' rating on the senior certificates for groups 5 through 7 reflect the 4.55% subordination provided by the 2.30% class C-B-1, 0.75% class C-B-2, 0.50% class C-B-3, 0.45% class C-B-4, 0.30% class C-B-5, and the 0.25% class C-B-6 (not rated by Fitch). Fitch believes the credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A. (Master Servicer), which is rated 'RMS1' by Fitch. The trust will contain fixed-rate mortgage loans secured by first liens on one- to four-family residential properties with an approximate aggregate principal balance of $874,852,151. The mortgage loans in Pool 1, which collateralize Groups 1-4, AR, AR-L, D-X, DP, and the D-B certificates, consist of 681 fixed-rate mortgage loans with an aggregate principal balance of $394,219,004.71 as of the cut-off date (Oct. 1, 2006). The mortgage pool has a weighted average loan-to-value ratio of 83.745% with a weighted average mortgage rate of 6.089%. Cash-out refinance loans account for 29.81% and second homes 8.87%. The average loan balance is $578,882.53 and the loans are located in Puerto Rico. The mortgage loans in Pool 2, which collateralize Groups 5-7, A-X, and the C-B certificates, consist of 833 fixed-rate mortgage loans with an aggregate principal balance of $493,455,649.81 as of the cut-off date (Oct. 1, 2006). The mortgage pool has a weighted average LTV of 71.24% with a weighted average mortgage rate of 6.774%. Cash-out refinance loans account for 31.43% and second homes 6.32%. The average loan balance is $592,383.73 and the loans are primarily concentrated in California (44.90%), New York (8.61%) and New Jersey (5.52%). U.S. Bank National Association will serve as trustee. Credit Suisse First Boston Mortgage Securities Corp., a special purpose corporation, deposited the loans in the trust that issued the certificates. For federal income tax purposes, an election will be made to treat the trust as multiple real estate mortgage investment conduits. CRESCENT RESOURCES: S&P Rates $1.225 Billion Bank Term Loan at BB ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' corporate credit rating to Crescent Resources LLC. At the same time, a 'BB' bank loan rating with a '2' recovery rating is assigned to the $1.225 billion term loan and $200 million revolver. The outlook is stable. "The 'BB' corporate credit rating reflects the risks associated with a highly capital-intensive, transaction-dependent business that is now more highly leveraged than in the past," explained Standard & Poor's credit analyst George Skoufis. "Offsetting these risks are a track record of success and profitability, a good market position, and some ability to control capital investments, along with strong sponsorship and sizable land holdings that can be monetized." The '2' recovery rating indicates that lenders can expect a strong likelihood of substantial recovery (greater than 80%) of principal in the event of default. Although a recapitalization has resulted in a more aggressive capital structure, Crescent has a solid track record of developing high-quality projects, and its business appears well positioned. Crescent's ability to adjust its capital expenditures over time and monetize certain assets to aid liquidity should support cash flow and its ability to meet its debt service requirements. Positive ratings momentum is unlikely due to the currently challenging housing market. Ratings would be negatively affected by weaker-than-expected operating performance without a measurable contraction in capital investments. CWMBS INC: Fitch Assigns BB Rating to $1 Million Class B-3 Certs ---------------------------------------------------------------- Fitch rates CWMBS, Inc.'s CHL Mortgage Pass-Through Trust 2006-18 mortgage pass-through certificates: -- $500,484,603 million classes 1-A-1, 1-X, 2-A-1 through 2- A-8, 2-X, PO, and A-R certificates (senior certificates) 'AAA'; -- $12,219,800 class M certificates 'AA'; -- $3,119,900 class B-1 certificates 'A'; -- $1,559,900 class B-2 certificates 'BBB'; -- $1,040,000 class B-3 certificates 'BB'; -- $780,000 class B-4 certificates 'B'. The 'AAA' rating on the senior certificates reflects the 3.75% subordination provided by the 2.35% class M, the 0.60% class B-1, the 0.30% class B-2, the 0.20% privately offered class B-3, the 0.15% privately offered class B-4, and the 0.15% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing), rated 'RMS2+' by Fitch, a direct wholly owned subsidiary of Countrywide Home Loans, Inc. The mortgage pool consists of two loan groups. Loan Group 1 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $207,912,419 as of the cut-off date (Oct. 1, 2006), secured by first liens on one- to four-family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 71.73%. The weighted average FICO credit score is approximately 745. Cash-out refinance loans represent 29.08% of the mortgage pool and second homes 5.98%. The average loan balance is $600,903. The four states that represent the largest portion of mortgage loans are California (37.32%), New Jersey (7.50%), Florida (5.52%) and Virginia (5.10%). All other states represent less than 5% of the pool as of the cut-off date. Loan Group 2 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $312,071,772 as of the cut-off date (Oct. 1, 2006), secured by first liens on one- to four-family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 73.13%. The weighted average FICO credit score is approximately 746. Cash-out refinance loans represent 25.58% of the mortgage pool and second homes 7.69%. The average loan balance is $613,108. The three states that represent the largest portion of mortgage loans are California (41.43%), Virginia (5.67%), and New Jersey (5.51%). All other states represent less than 5% of the pool as of the cut- off date. CWMBS purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. DANA CORP: Carl Muney Wants Debtors Compelled to Pay $10MM Claim ---------------------------------------------------------------- Carl Muney asserts that Dana Corporation and its debtor-affiliates have been grossly negligent in allowing their employees to smoke in their work stations and thus, exposing him to second hand cigarette smoke in his workplace at the Debtors' Gordonsville Plant. Mr. Muney argues that the State and Federal Attorney General has proved that second hand cigarette smoke is dangerous to non- smokers' health, and have even sued tobacco companies. Accordingly, Mr. Muney asks the U.S. Bankruptcy Court for the Southern District of New York to compel the Debtors to pay him $10,000,000 for compensatory and punitive damages as well as physiological concerns caused by the Debtors for his exposure to second hand cigarette smoke in the work place. Mr. Muney also asks the Court to: (a) make the Debtors stand good for all the common stock they sold to him; (b) refrain the Debtors' or their employees from taking any retaliatory action against him; and (c) direct the Debtors to protect and ensure that all of the employee benefits he has accrued through his employment with the Debtors before the Petition Date. About Dana Corporation Toledo, Ohio-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. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORP: Organ Withdraws Lift Stay Motion to Pursue Insurance --------------------------------------------------------------- Pursuant to the U.S. Bankruptcy Court for the Southern District of New York's order authorizing Dana Corporation and its debtor- affiliates to continue their existing workers' compensation program, Patti Organ deems her motion to have the stay lifted moot. Accordingly, Ms. Organ withdraws her Lift Stay Motion. As reported in the Troubled Company Reporter on Oct. 11, 2006, Ms. Organ said she sustained injuries while working for the Debtors on Sept. 30, 2005. A Report of Injury was filed with the Missouri Division of Workers' Compensation. She filed a Claim for Compensation with the Missouri Division of Workers' Compensation on Sept. 12, 2006. The Debtors have acknowledged that it carried a policy of Workers' Compensation Liability Insurance, which was in full force and effect at the time of Ms. Organ's accident. Ms. Organ and her counsel expected that the insurance company's defense firm will represent the Debtors' interests in the pending Workers' Compensation Claim. About Dana Corporation Toledo, Ohio-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. 24; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DEATH ROW: Wants Virgil Roberts as Business Affairs Consultant -------------------------------------------------------------- R. Todd Neilson, the Chapter 11 Trustee appointed in Death Row Records Inc.'s bankruptcy case, asks the U.S. Bankruptcy Court for the Central District of California in Los Angeles for authority to employ Virgil P. Roberts, Esq., as his business affairs consultant and legal advisor. Mr. Roberts will: a) identify music-related assets owned by or under the control of the Debtor; b) assist the Trustee is valuing music-related assets owned or controlled by the Debtor; c) provide the Trustee with business affairs and related legal advice relating to the disposition, operation, or exploitation of music-related assets owned or controlled by the Debtor; d) analyze and renegotiate the Debtor's existing music- related agreements; e) assist the Trustee in evaluating the appropriateness of existing royalty; f) negotiate new agreements for the disposition, operation, or exploration of music-related assets owned or controlled by the Debtor; and g) providing other legal advice and assistance as the Trustee requests. The Trustee agreed to compensate Mr. Roberts in an amount equal to: i) his regular hourly billing rate of $450 per hour for services he perform on behalf of the estate; and ii) 5% of all gross income received by the Debtor resulting from his services in negotiating agreements on behalf of the Debtor. Mr. Roberts assures the Court that he does not hold any interest adverse to the Debtor's estate. Mr. Roberts can be reached at: Virgil Roberts Bobbitt & Roberts 1620 26th Street, Suite 150 Santa Monica, California 90404-4044 Tel: (310) 315-7150 Fax: (310) 315-7159 Headquartered in Compton, California, Death Row Records Inc. -- http://www.deathrowrecords.net/-- is an independent record producer. The company and its owner, Marion Knight, Jr., filed for chapter 11 protection on April 4, 2006 (Bankr. C.D. Calif. Case No. 06-11205 and 06-11187). Daniel J. McCarthy, Esq., at Hill, Farrer & Burrill, LLP, and Robert S. Altagen, Esq., represent the Debtors in their restructuring efforts. R. Todd Neilson serves as Chapter 11 Trustee for the Debtor's estate. When the Debtors filed for protection from their creditors, they listed total assets of $1,500,000 and total debts of $119,794,000. DELPHI CORP: Judge Drain Adjourns Hearings on CBA Rejection Plea ---------------------------------------------------------------- The Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York further adjourns hearings on Delphi Corp.'s motions to reject collective bargaining agreements and modify retiree benefits under Sections 1113 and 1114 of the Bankruptcy Code and for authority to reject after notice certain commercial contracts with General Motors Corp. under Section 365 of the Bankruptcy Code. Delphi is seeking to reject its collective bargaining agreements with unions and to modify obligations to provide insurance benefits for its hourly retirees. To restructure its U.S. operations, Delphi is planning to cut 4/5 of its 33,100 U.S. hourly workers, close 21 of its 29 U.S. union plants and slash wages and benefits for workers who stay. The Section 1113-1114 proceedings began May 9, 2006, with opening statements by Delphi, the UAW, other objecting unions -- IUE-CWA, USW, IAM, IBEW and IUOE -- the Official Committee of Unsecured Creditors and others. The Court will conduct an in-person, in-camera status conference with the Debtors, the Respondents, and the Official Committee of Equity Security Holders at 2:00 p.m., on Nov. 8, 2006, so that the Court can be apprised by the parties of the status of negotiations regarding the consensual resolution of the 1113/1114 Motion. Judge Drain directs the Debtors to advise parties by November 6, 2006, whether they intend to ask the Court at the November 8 status conference to schedule trial dates or further status conferences to provide additional time for negotiations. Pursuant to Sections 1113(d)(2) and 1114(k)(2), the date by which a ruling on the 1113/1114 Motion will be issued is extended, with the consent of the Debtors and the Respondents to the extent required by statute, to Nov. 30, 2006. "I continue to believe that people are approaching these discussions in good faith," Delphi attorney John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom, LLP, told Bloomberg News. "In Delphi's view, the issues continue to be worked on and continue to be narrowed." About Delphi Troy, Mich.-based 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. 45; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Inks Staffing Program Pact with Fieldglass & Bartech ----------------------------------------------------------------- Fieldglass, Inc., together with Bartech Workforce Management, will support Delphi Corporation's contract staffing management nationwide. The overall contract staffing program managed by Bartech Workforce Management, a division of The Bartech Group, as the Master Vendor Provider, includes over 85 suppliers and serves all Delphi facilities across the United States. "Delphi's global supply management team remains focused on optimizing our entire purchasing value stream by engaging suppliers, such as Bartech, that further enable our ability to reduce waste, eliminate unnecessary costs and elevate our financial performance," said Sid Johnson, Delphi Vice President, Global Supply Management. Fieldglass and Bartech Workforce Management established a partnership in 2001. Since then, the alliance has provided mutual benefits for both companies in delivering a scalable and flexible solution for all types of services procurement. About The Bartech Group Based in Livonia, Michigan , The Bartech Group -- http://www.bartechgroup.com/-- is an independent human capital staffing and services firm in the United States specializing in engineering, information technology, managed service provider services, administrative staffing services and related outsourcing services and solutions. Bartech, which employs 2,700 professionals, serves the automotive, healthcare, insurance, electric utility, financial services, office products and other industries, and maintains 19 offices in Michigan, Ohio, Indiana, Florida and Ontario, Canada. About Fieldglass Fieldglass -- http://www.fieldglass.com/-- provides an on- demand contingent workforce management and services procurement solution that improves the efficiency and effectiveness of the entire contingent labor supply chain. Fieldglass enables profitable collaboration between companies and staffing firms to drive mutual value. About Delphi Troy, Mich.-based 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. 45; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DEUTSCHE ALT-A: Moody's Lowers Rating on Class M-3 Certs to Ba2 --------------------------------------------------------------- Moody's Investors Service downgraded two certificates from a Deutsche Alt-A Securities, Inc. Mortgage Loan Trust Series 2003- 4XS Trust deal, issued in 2003. The transaction consists of Alt-A first-lien fixed-rate loans. The transaction has multiple originators. The two most subordinate certificates from the transaction have been downgraded because existing credit enhancement levels are low given the current projected losses on the underlying pools. The pool of mortgages has seen losses in recent months and future loss could cause a more significant erosion of the overcollateralization. The fixed-rate pool currently has $360,875 of overcollateralization which is below the 35 bp floor as of the October 25, 2006 reporting date. These are the rating actions: * Issuer: Deutsche Alt-A Securities, Inc. Mortgage Loan Trust * Downgrades: -- Series 2003-4XS; Class M-2, downgraded to Baa1 from A2; -- Series 2003-4XS; Class M-3, downgraded to Ba2 from Baa2. DEVELOPERS DIVERSIFIED: Earns $49 Mil. in Quarter Ended Sept. 30 ---------------------------------------------------------------- Developers Diversified Realty Corporation has reported its operating results for the third quarter ended Sept. 30, 2006. Funds From Operations, a financial measure used by Real Estate Investments Trusts to define their operating performance, was $91.7 million for the three months ended Sept. 30, 2006, as compared to $81.8 million for the three months ended Sept. 30, 2006 and 2005, respectively, an increase of 12.1%. Net income available to common shareholders was $49 million for the three months ended Sept. 30, 2006, as compared to $46.5 million for the prior comparable period. The increase in net income and FFO for the three months ended Sept. 30, 2006, is primarily related to an increase in gain on sale of real estate assets comprised of land sales and sales through the Company's merchant building program as compared to 2005. Scott Wolstein, Developers Diversified's Chairman and Chief Executive Officer stated, "We're pleased to announce this quarter's strong FFO per share growth of over 12%. We continue to see outstanding leasing activity in our operating and development portfolio. This demand for space reflects the underlying health of the retail industry and the success of our core tenants. Our recent announcements regarding our merger agreement with Inland Retail Real Estate Trust, Inc. and our joint venture investment in Sonae Sierra Brazil reflect acquisitions that provide long-term strategic benefits for the Company and represent significant opportunities to grow shareholder value." Leasing: Leasing activity continues to be strong throughout the portfolio. During the third quarter of 2006, the Company executed 132 new leases aggregating 784,332 square feet and 214 renewals aggregating 833,721 square feet. Rental rates on new leases increased by 29.5% and rental rates on renewals increased by 11.7%. On a blended basis, rental rates for new leases and renewals increased by 15.5%. At Sept. 30, 2006, the average annualized base rent per occupied square foot, including those properties owned through joint ventures, and excluding the impact of the properties acquired from Mervyns, was $11.68, as compared to $11.23 at Sept. 30, 2005. At Sept. 30, 2006, the portfolio, including those properties owned through joint ventures, was 96.2% leased. Excluding the impact of the properties acquired from Mervyns, the core portfolio was 96.1% leased, as compared to 95.8% at Sept. 30, 2005. These percentages include tenants for which signed leases have been executed and occupancy has not occurred. Based on tenants in place and responsible for paying rent as of Sept. 30, 2006, the portfolio was 95.3% occupied. Excluding the impact of the properties acquired from Mervyns, the core portfolio was 95.1% occupied, as compared to 94.8% at Sept. 30, 2005. Strategic Real Estate Transactions Inland In October, 2006, the Company and Inland Retail Real Estate Trust, Inc. announced that they have entered into a definitive merger agreement. Under the terms of the agreement, DDR will acquire all of the outstanding shares of IRRETI for a total merger consideration of $14.00 per share in cash. The transaction has a total enterprise value of approximately $6.2 billion. This amount includes approximately $2.3 billion of existing debt, a significant portion of which is expected to be prepaid at closing. Completion of the transaction, which is expected to occur in the first quarter of 2007, is subject to approval of the merger agreement by IRRETI shareholders and other customary closing conditions described in the merger agreement. The merger was unanimously approved by DDR's Board of Directors. The merger was unanimously approved by IRRETI's Board of Directors, with two related party directors recusing themselves. Sonae Sierra Brazil In October 2006, the Company announced the acquisition of a 50% joint venture interest in Sonae Sierra Brazil, a fully integrated retail real estate company based in Sao Paulo, Brazil. Sonae Sierra Brazil is a subsidiary of Sonae Sierra, an international owner, developer and manager of shopping centers based in Portugal. Sonae Sierra Brazil is the managing partner of a partnership that owns direct and indirect interests in nine retail assets aggregating 3.4 million square feet and a property management company in Sao Paulo, Brazil that oversees the leasing and management operations of the portfolio . Sonae Sierra Brazil owns approximately 93% of the partnership and Enplanta Engenharia owns approximately 7%. The aggregate market value of Sonae Sierra Brazil is approximately $300 million. Developers Diversified's aggregate proportionate share investment is approximately $150 million. MDT Joint Venture In July 2006, the Company sold two additional expansion areas in McDonough, Georgia and Coon Rapids, Minnesota to the MDT Joint Venture for approximately $10.1 million. These expansion areas are adjacent to shopping centers currently owned by the MDT Joint Venture. The Company recognized an aggregate merchant build gain of $3.1 million, and deferred gains of approximately $0.5 million relating to the Company's effective 14.5% ownership interest in the venture. Service Merchandise Joint Venture In August 2006, the Company purchased its partners' approximate 75% interest in the remaining 52 assets owned by the Service Merchandise Joint Venture agreement at a gross purchase price of approximately $138 million relating to our partners' approximately 75% interest, based on a total valuation of approximately $185 million for all remaining assets. In Sept. 2006, the Company sold 51 of the assets to the Coventry II Joint Venture. The Company retained a 20% interest in the joint venture. The Company recorded a gain of approximately $6.4 million of which $3.6 million is included in FFO. Coventry II Joint Venture In Sept. 2006, the Coventry II Joint Venture acquired an 88 acre site located in Bloomfield Hills, Michigan at a cost of approximately $68.4 million. The Company anticipates commencing construction of a 600,000 square foot lifestyle center. The Company is generally responsible for the day-to-day development, management and leasing of the property. Pursuant to the terms of the joint venture, the Company earns fees for property management, leasing and construction management plus a promoted interest, along with Coventry, after return of capital to investors. Financing In August 2006, the Company issued $250 million, 3.50% convertible senior unsecured notes due 2011. The notes have an initial conversion rate of approximately 15.3589 common shares per $1,000 principal amount of the notes, represent a conversion price of approximately $65.11 per common share and a conversion premium of approximately 22.5% based on the last reported sale price of $53.15 per common share on Aug. 22, 2006. The initial conversion rate is subject to adjustment under certain circumstances. Upon closing of the sale of the notes, the Company repurchased $48.3 million of its common shares. In connection with the offering, the Company entered into an option arrangement, that is settled in shares of our common stock, with an investment bank that had the economic impact of effectively increasing the conversion price of the notes to $74.41 per common share, which represents a 40.0% premium based on the Aug. 22, 2006 closing price of $53.15 per common share. The cost of this arrangement was approximately $10.3 million and has been recorded as an equity transaction in our consolidated balance sheet. In addition, in late September and early October, the Company entered into an aggregate $300 million of interest rate swaps which converted floating rate debt to a weighted average fixed Libor rate of approximately 4.94%. As a result, the effective floating rate debt, as a percentage of total debt, was 6.6% at Sept. 30, 2006. Developers Diversified currently owns and manages over 500 retail operating and development properties in 44 states, plus Puerto Rico and Brazil, totaling 118 million square feet. Developers Diversified Realty is a self-administered and self-managed real estate investment trust operating as a fully integrated real estate company which acquires, develops, leases and manages shopping centers. A copy of the Company's Supplemental Financial/Operational package is available to all interested parties upon request at: Investor Relations Developers Diversified Realty Corp. Attn: Michelle M. Dawson Vice President of Investor Relations 3300 Enterprise Parkway Beachwood, OH 44122 About Developers Diversified Based in Beachwood, Ohio, Developers Diversified Realty Corporation -- http://www.ddr.com/-- currently owns and manages over 500 retail operating and development properties in 44 states, plus Puerto Rico and Brazil, totaling 118 million square feet. The Company is a self-administered and self-managed real estate investment trust operating as a fully integrated real estate company which acquires, develops and leases shopping centers. * * * As reported in the Troubled Company Reporter on Oct. 31, 2006, Fitch Ratings affirmed Developers Diversified Realty Corporation's ratings following the company's announcement of the pending acquisition of Inland Retail Real Estate Trust Inc. Ratings affirmed include the Company's BBB Issuer Default Rating, BBB Senior unsecured debt and BB+ preferred stock rating. DURA AUTOMOTIVE: S&P's Ratings Tumbles to D After Ch. 11 Filing --------------------------------------------------------------- Standard & Poor's Ratings Services lowered Dura Automotive Systems Inc.'s senior secured and subordinated debt ratings to 'D' from 'CC' following the company's announcement that it and its U.S. and Canadian subsidiaries had filed for Chapter 11 bankruptcy protection. In addition, these ratings were removed from CreditWatch with negative implications. At the same time, the '1' recovery rating on the secured debt was affirmed and then withdrawn. The corporate credit rating on Dura and the rating on Dura Operating Corp.'s $400 million senior notes were already 'D' following the company's failure to make an interest payment earlier this month. Well-known challenges cited by the company in its bankruptcy filing included production cuts by major U.S. automakers and escalating costs of raw materials. Dura indicated that its operations outside the U.S. and Canada, which in total account for about 51% of revenues, were not part of the filing. Dura has arranged a $300 million DIP loan. Rochester Hills, Mich.-based Dura, a manufacturer of automotive and recreational vehicle components, has total debt of about $1.2 billion. EARTH GLOBE: Case Summary & 12 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Earth Globe International, Inc. dba Baroness Coffee Company 4721 Ironton Street, Unit B Denver, CO 80239 Bankruptcy Case No.: 06-17944 Type of Business: The Debtor is a select coffee importer that roasts and flavors gourmet coffees from the world's coffee growing regions. The Debtor offers traditional, organic, flavored, and decaffeinated coffees, specialty teas, and gourmet syrups. See http://www.baronesscoffee.com/ Chapter 11 Petition Date: October 31, 2006 Court: District of Colorado (Denver) Judge: A. Bruce Campbell Debtor's Counsel: Stephen C. Nicholls, Esq. Nicholls, Nicholls, Biles & Bower, LLC 1725 Gaylord Street, Suite 100 Denver, CO 80206 Tel: (303) 329-9700 Fax: (303) 329-6950 Total Assets: Less than $10,000 Total Debts: $1 Million to $100 Million Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Northern Colorado Paper Trade Debt $45,000 295 71st Avenue Greeley, CO 80634 Attn: Tim Ward Tel: (970) 353-8787 DPI Rocky Mountain Trade Debt $28,000 8125 East 88th Avenue Henderson, CO 80640 Attn: Marcia Jester Tel: (303) 301-1226 First Industrial Realty, Inc. Back Rent $28,000 5350 South Roslyn Street Suite 240 Englewood, CO 80111 Attn: Tom King Tel: (303) 220-5565 Package Masters, Inc. Trade Debt $7,000 Colorado Department of Revenue Sales Tax $6,000 Plastic Packaging Trade Debt $5,500 Anchor Sales Co. Trade Debt $5,000 Bunzl Papercraft Trade Debt $4,400 Udi's Food Trade Debt $4,000 Eldorado Coffee Roasters Trade Debt $3,500 A1 Truck & Auto Service Repair Services $2,000 Frank & Finger, P.C. Legal Services $1,000 EASTMAN KODAK: Has $877MM Earnings Improvement in 3rd Quarter 2006 ------------------------------------------------------------------ Eastman Kodak Company reported a GAAP earnings improvement of $877 million for the third quarter of 2006, on sales of $3.204 billion, largely as the result of the recording of a tax valuation charge in the year-ago quarter of $778 million. The company also delivered a $98 million increase in digital earnings, driven by wider gross profit margins, from strong earnings performance in the Graphic Communications and Consumer Digital businesses, and the result of the company's global cost-reduction initiatives. Based on its third-quarter 2006 performance, the company is confident of achieving its 2006 cash and digital earnings goals, and expects digital revenue growth somewhat below its 10% target, as a result of the company's focus on margin expansion. This corresponds to a total revenue decline of approximately 6%. "Our business transformation is on track," said Antonio M. Perez, Chairman and Chief Executive Officer, Eastman Kodak Company. "I am encouraged by our third-quarter results, especially because they reinforce our confidence in our full-year performance, which is the basis on which I manage the company." "We measure our progress against three important metrics - cash generation, digital earnings, and digital revenue. Our year-over- year digital revenues were down slightly during the quarter, reflecting our strong focus on margin expansion and willingness to pursue more profitable sales, the universe of which expands as our cost structure improves. Our digital earnings were vastly improved this quarter and our cash balance continues to exceed $1 billion. While I am fully aware of the challenges to largely complete our restructuring by the end of next year, this performance represents clear progress toward our goals and gives us good momentum to carry into the fourth quarter and 2007." For the third quarter of 2006: * Sales totaled $3.204 billion, a decrease of 10% from $3.553 billion in the third quarter of 2005, largely attributable to a 19% decline in traditional sales. Third- quarter traditional revenue totaled $1.402 billion, compared to $1.725 billion in the year-ago quarter, while digital revenue totaled $1.793 billion, as compared to $1.814 billion in the year-ago quarter. * The company's earnings from continuing operations in the quarter, before interest, other income (charges), net, and income taxes, were $2 million, compared with a loss from operations of $123 million in the year-ago quarter. * On the basis of generally accepted accounting principles in the U.S. (GAAP), the company reported a third-quarter net loss of $37 million, which includes after-tax restructuring costs of $202 million. By comparison, the third quarter 2005 GAAP net loss was $914 million. The difference is largely driven by the inclusion in last year's third quarter of a $778 million, non-cash charge to record a valuation allowance against the net deferred tax assets in the U.S. * Digital earnings were $105 million, compared with $7 million in the year-ago quarter, marking the first time that the company's quarterly digital earnings growth exceeded the quarterly decline in traditional earnings. This performance was primarily due to operational improvements throughout the digital portfolio, the impact of a non-recurring licensing arrangement within the Consumer Digital Group, and strong results in the Graphic Communications Group. Other third-quarter 2006 details: * For the quarter, net cash provided by operating activities on a GAAP basis was $329million, compared with $370 million in the year-ago quarter. Investable cash flow for the quarter was $237 million, compared with $216 million in the year-ago quarter. * Kodak held $1.102 billion in cash on its balance sheet as of Sept. 30, 2006, compared with $610 million on Sept. 30, 2005. This is consistent with the company's stated desire to maintain approximately $1.0 billion of cash on hand. * Debt decreased $192 million from the second-quarter level, to $3.339 billion as of Sept. 30, 2006, and was down $244 million from the Dec. 31, 2005 level of $3.583 billion. The company intends to reduce debt by approximately $800 million in 2006. * Gross Profit was 27.3% in the current quarter, up from 25.9% in the prior year quarter, primarily because of reductions in manufacturing costs and the favorable impact of the previously noted licensing arrangement, offset by volume declines in traditional product sales. * Selling, General and Administrative expenses declined by $105 million in the third quarter, to $565 million, compared with $670 million for the prior-year quarter. As a percentage of sales, SG&A decreased from 18.9% in the prior- year quarter to 17.6% in the third quarter of 2006. 2006 Goals Kodak continues to expect net cash provided by operating activities this year of $800 million to $1.0 billion, which corresponds with investable cash flow of $400 million to $600 million. Accordingly, the company expects a GAAP loss from continuing operations before interest, other income (charges), net, and income taxes for the full year of $400 million to $600 million, which includes approximately $1.0 billion in pre-tax restructuring charges. This corresponds to digital earnings from operations this year in a range of $350 million to $450 million. The company forecasts 2006 digital revenue growth somewhat below 10%, reflecting the company's focus on targeted participation in the consumer digital market. Total 2006 revenue is expected to be down approximately 6%. About Eastman Kodak Co. Headquartered in Rochester, New York, Eastman Kodak Co. -- http://www.kodak.com/-- engages in the development, manufacturing, and marketing of digital and traditional imaging products, services, and solutions to consumers, businesses, the graphic communications market, the entertainment industry, professionals, healthcare providers, and other customers. * * * As reported in the Troubled Company Reporter on Aug. 11, 2006, Moody's Investors Service placed Eastman Kodak Company on review for possible downgrade. Ratings under review include the Company's B1 Corporate Family Rating; B2 Senior Unsecured Rating; and Ba3 rating on the Senior Secured Credit Facilities. Moody's review continues to focus on the company's potential sale of the Kodak Health Group as well as the fundamental operating performance of the company. As reported in the Troubled Company Reporter on Aug. 7, 2006, Standard & Poor's Ratings Services placed its ratings on Eastman Kodak Co. (B+/Watch Neg/--) on CreditWatch with negative implications. The Rochester, New York-based imaging company had $3.5 billion in debt as of June 30, 2006. EL POLLO: Terminates Tender Offer for 11-3/4% and 14-1/2% Notes --------------------------------------------------------------- El Pollo Loco, Inc. and EPL Intermediate, Inc. has terminated the tender offer and consent solicitation for its 11-3/4% Senior Notes Due 2013 and by Intermediate for its 14-1/2% Senior Discount Notes Due 2014. All Notes tendered during the Offer will be returned to the original noteholder and no payments will be made. The Offer was conditioned on the completion of the initial public offering of El Pollo Loco Holdings, Inc., the parent of El Pollo Loco and Intermediate. Holdings withdrew the Registration Statement for the initial public offering, as current market conditions made it inadvisable to proceed with the initial offering. About El Pollo Loco Headquartered in Irvine, California, El Pollo Loco -- http://www.elpolloloco.com/-- currently operates 347 restaurants (199 franchised locations and 148 company-owned restaurants), located principally in California, with additional restaurants in Arizona, Nevada, Texas, Colorado and Illinois. El Pollo Loco is a privately held company owned by Trimaran Capital Partners and company management. Trimaran is a private asset management firm, headquartered in New York, with assets under management and committed capital in excess of $3 billion. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Moody's Investors Service moved El Pollo Loco, Inc.'s corporate family rating back to B3 from B1 following the company's move to withdraw its proposed $135 million initial public offering. At the same time, the B1 ratings on the proposed $210 million senior secured credit facility consisting of a $25 million revolver and a $185 million term loan B were withdrawn. As reported in the Troubled Company Reporter on Oct. 20, 2006, Standard & Poor's Ratings Services affirmed its ratings, including its 'B' corporate credit rating, on El Pollo Loco Inc. following the company's announcement that it has withdrawn its plan for an initial public offering. ELEPHANT TALK: Posts $525,855 Net Loss in 2006 Second Quarter ------------------------------------------------------------- Elephant Talk Communications Inc. reported a $525,855 net loss on $1,494,740 revenues for the quarter ended June 30, 2006, compared to a $584,812 net loss on $79,800 revenues for the same period in 2005. At June 30, 2006, the company's balance sheet showed $15,299,215 in total assets, $12,248,517 in total liabilities, Minority Interest of $1,214,999 and total stockholders' equity of $1,835,699. The company's accumulated deficit increased to $13,145,436 at June 30, 2006, from $12,132,435 at Dec. 31, 2005. The company's June 30 balance sheet also showed strained liquidity with $4,509,378 in total current assets available to pay $8,748,517 in total current liabilities. A full-text copy of the company's second quarter financial statements is available for free at: http://researcharchives.com/t/s?1431 Going Concern Doubt Hong Kong's Jimmy C. H. Cheung & Co. raised substantial doubt about Elephant Talk Communications Inc.'s ability to continue as a going concern after auditing the Company's consolidated financial statements for the year ended Dec. 31, 2005. The auditor pointed to the company's working capital deficit of $3,372,917 and accumulated deficit of $12,132,435 at Dec. 31, 2005, which included a net loss of $1,214,193 for the year ended Dec. 31, 2005. About Elephant Talk Elephant Talk Communications Inc. -- www.elephanttalk.com/ -- is a voice-over-Internet-protocol telecommunications and mobile short message service and other value added telecom services provider in China. With its completion of acquisition of Beijing China Wind, the company provides its mobile value added services to over 1 million customers in China. Its services include short message service, ring tone/wall-paper downloads and mobile e-commerce services. Its international call services are provided through an integrated network infrastructure comprising both the packet-switched system and circuit switched system focusing on the Asia Pacific region and the United States. FEDERAL-MOGUL: Ct. Denies Abex Claimants' Motion for Futures Rep. ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has denied without prejudice the request, by individual personal injury claimants that assert claims for exposure to asbestos-containing products produced by Pneumo Abex LLC, for the appointment of a separate Future Claimants' Representative in the chapter 11 cases of Federal-Mogul Corporation and its debtor-affiliates. As reported in the Troubled Company Reporter on July 3, 2006 the individual personal injury claimants asked the U.S. Bankruptcy Court to appoint a separate Future Claimants' Representative in the chapter 11 cases of Federal-Mogul Corporation and its debtor- affiliates. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company 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. 114; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). FINDEX.COM INC: Earns $861,658 in Second Quarter Ended June 30 -------------------------------------------------------------- Findex.com, Inc., has filed its second quarter financial statements for the three month period ended June 30, 2006 with the Securities and Exchange Commission. Findex.com reported $861,658 of net income on $661,279 of revenues for the quarter ended June 30, 2006, compared to a $520,766 net loss on $1,276,996 of revenues for the same period in 2005. This second quarter's net income is mainly attributed to the valuation gain the company recognized from the fair value adjustment of their derivative liabilities during the three months ended June 30, 2006. The company anticipates, however, this valuation gain to be temporary. At June 30, 2006, the company's balance sheet showed $2,869,066 in total assets and $3,006,303 in total liabilities, resulting in a stockholders' deficit of $137,237. Total accumulated deficit stood at $7,777,235 at June 30, 2006. The company's balance sheet at June 30, 2006, also showed strained liquidity with $587,884 in total current assets available to pay $2,804,244 in total current liabilities. A full-text copy of the company's quarterly report is available for free at: http://researcharchives.com/t/s?1432 About Findex.com, Inc. FindEx.com Inc. develops, publishes, markets, and distributes and directly sells off-the-shelf consumer and organizational software products for PC, Macintoshr and PDA platforms. The company develops their software products through in-house initiatives supplemented by outside developers. The company markets and distributes their software products principally through direct marketing and Internet sales programs, but also through secular and non-secular wholesale retailers. FIRST FRANKLIN: $60.3 Mil of Class B2 Certs Get Fitch's B Rating ---------------------------------------------------------------- Fitch rates First Franklin Mortgage Loan Trust Mortgage Pass- Through Certificates, Series 2006-FFA: -- $577.1 million classes A1 through A4 (senior certificates) 'AAA'; -- $39.1 million class M1 'AA+'; -- $31.0 million class M2 'AA'; -- $20.0 million class M3 'AA-'; -- $17.4 million class M4 'A+'; -- $17.8 million class M5 'A'; -- $17.4 million class M6 'A-'; -- $17.0 million class M7 'BBB+'; -- $14.9 million class M8 'BBB'; -- $11.5 million class M9 'BBB-'; -- $12.3 million class B1 'BB+' (144A); -- $60.3 million class B2 'BB' (144A). The 'AAA' rating on the senior certificates reflects the 32.05% total credit enhancement provided by the 4.60% class M1, the 3.65% class M2, the 2.35% class M3, the 2.05% class M4, the 2.10% class M5, the 2.05% class M6, the 2.00% class M7, the 1.75% class M8, the 1.35% class M9, the privately offered 1.45% class B1, the privately offered 7.10% class B2, and the 1.60% initial overcollateralization. All certificates have the benefit of monthly excess cash flow to absorb losses. An interest rate swap agreement and an interest rate cap agreement both with Wachovia Bank, National Association (rated AA-/F1+ by Fitch) is also available to cover interest shortfalls and losses. In addition, the ratings reflect the quality of the loans, the integrity of the transaction's legal structure as well as the primary servicing capabilities of National City Home Loan Services, Inc. (rated 'RPS2' by Fitch) and Wells Fargo Bank, N.A. as Trustee. The mortgage loan trust is divided into two groups of second-lien, fixed-rate, fully amortizing and balloon mortgage loans. The Pool I mortgage loans had an aggregate principal balance of $63,959,159 as of the cut-off date, October 1, 2006. The weighted average loan rate of the Pool I mortgage loans is approximately 10.696%. The weighted average remaining term to maturity is 192 months. The average cut-off date principal balance of the mortgage loans is approximately $25,461. The weighted average original combined loan-to-value ratio is 99.87% and the weighted average Fair, Isaac & Co. score was 648. The properties are primarily located in Texas (9.40), Georgia (8.47%), and Utah (6.20%). The Pool II mortgage loans had an aggregate principal balance of $785,292,312 as of the cut-off date. The weighted average loan rate of the Pool II mortgage loans is approximately 10.438%. The weighted average remaining term to maturity is 201 months. The average cut-off date principal balance of the mortgage loans is approximately $53,735. The weighted average original combined loan-to-value ratio is 99.43% and the weighted average Fair, Isaac & Co. score was 663. The properties are primarily located in California (29.51%), Florida (10.99%) and Texas (5.83%). FIRST FRANKLIN: Fitch Rates $22.3 Million Class B Certs at BB+ -------------------------------------------------------------- Fitch rates First Franklin Mortgage Loan Trust Mortgage Pass- Through Certificates, Series 2006-FF15: -- $1.857 billion classes A1 through A6 (senior certificates) 'AAA'; -- $72.5 million class M1 'AA+'; -- $61.3 million class M2 'AA'; -- $37.9 million class M3 'AA-'; -- $33.5 million class M4 'A+'; -- $32.3 million class M5 'A'; -- $30.1 million class M6 'A-'; -- $25.6 million class M7 'BBB+'; -- $15.6 million class M8 'BBB'; -- $14.5 million class M9 'BBB-'; -- $22.3 million class B 'BB+' (144A). The 'AAA' rating on the senior certificates reflects the 16.75% total credit enhancement provided by the 3.25% class M1, the 2.75% class M2, the 1.70% class M3, the 1.50% class M4, the 1.45% class M5, the 1.35% class M6, the 1.15% class M7, the 0.70% class M8, the 0.65% class M9, the privately offered 1.00% class B, and the 1.25% initial overcollateralization. All certificates have the benefit of monthly excess cash flow to absorb losses. An interest rate swap agreement and an interest rate cap agreement both with IXIS Financial Products Inc. (rated AA/F1+ by Fitch) is also available to cover interest shortfalls and losses. In addition, the ratings reflect the quality of the loans, the integrity of the transaction's legal structure as well as the primary servicing capabilities of National City Home Loan Services, Inc. (rated 'RPS2' by Fitch) and Wells Fargo Bank, N.A. as Trustee. The mortgage loans are divided into three groups of first-lien, fixed-rate and adjustable mortgage loans. The Pool I mortgage loans had an aggregate principal balance of $547,506,655 as of the cut-off date, October 1, 2006. The weighted average loan rate of the Pool I mortgage loans is approximately 8.161%. The weighted average remaining term to maturity is 355 months. The average cut-off date principal balance of the mortgage loans is approximately $142,877. The weighted average original loan-to- value ratio is 82.83% and the weighted average Fair, Isaac & Co. score was 641. The properties are primarily located in California (8.47), Florida (7.67%), and Illinois (7.14%). The Pool II mortgage loans had an aggregate principal balance of $317,116,293 as of the cut-off date. The weighted average loan rate of the Pool II mortgage loans is approximately 8.112%. The weighted average remaining term to maturity is 357 months. The average cut-off date principal balance of the mortgage loans is approximately $139,086. The weighted average original loan-to- value ratio is 83.44% and the weighted average Fair, Isaac & Co. (FICO) score was 636. The properties are primarily located in California (7.45%), Illinois (7.02%) and Florida (6.56%). The Pool III mortgage loans had an aggregate principal balance of $1,365,644,455 as of the cut-off date. The weighted average loan rate of the Pool III mortgage loans is approximately 8.063%. The weighted average remaining term to maturity is 358 months. The average cut-off date principal balance of the mortgage loans is approximately $238,916. The weighted average original loan-to- value ratio is 83.13% and the weighted average Fair, Isaac & Co. (FICO) score was 654. The properties are primarily located in California (30.81%), Florida (9.81%) and New York (6.54%). FIRST HORIZON: Fitch Rates $650,000 Privately Offered Class at B ---------------------------------------------------------------- Fitch rates First Horizon Alternative Mortgage Securities Trust mortgage pass-through certificates, Series 2006-FA7: -- $206.72 million classes A-1 through A-9, A-PO and A-R certificates (senior certificates) 'AAA'; -- $4.67 million class B-1 'AA'; -- $1.95 million class B-2 'A'; -- $1.41 million class B-3 'BBB'; -- $0.98 million privately offered class B-4 'BB'; -- $0.65 million privately offered class B-5 'B'; The 'AAA' rating on the senior certificates reflects the 4.75% subordination provided by the 2.15% Class B-1, the 0.90% Class B- 2, the 0.65% Class B-3, the 0.45% privately offered Class B-4, the 0.30% privately offered Class B-5, and the 0.30% privately offered Class B-6 (not rated by Fitch). Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of First Horizon Home Loan Corporation, currently rated 'RPS2' by Fitch Ratings. Substantially all of the mortgage loans were underwritten to First Horizon's 'Super Expanded Underwriting Guidelines'. These guidelines are less stringent than First Horizon's general underwriting guidelines and could include limited documentation, higher loan-to-value ratios and lower FICO scores. Mortgage loans underwritten to the 'Super Expanded Underwriting Guidelines' could experience higher rates of default and losses than loans underwritten using First Horizon's general underwriting guidelines. As of the cut-off date, Oct. 1, 2006, the aggregate pool consists of conventional, fully amortizing, fixed-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years. Approximately 36.8% of the mortgage loans in the aggregate pool have interest only payments scheduled for a period of ten years following the origination date of the mortgage loan. Thereafter, monthly payments will be increased to include principal and interest payments to sufficiently amortize the loan over the remaining term. The principal balance of the aggregate pool is $217,029,800 and the average principal balance is approximately $251,775. The mortgage pool has a weighted average original loan-to-value ratio of 68.5% and the weighted average FICO is 724. Rate/Term and cash-out refinance loans account for 12.4% and 40.3% of the pool, respectively. Second homes represent 6.2% of the pool, and investor occupancies represent 24.1% of the pool. The states with the largest concentrations are California (19.0%), Arizona (7.5%), Maryland (7.4%) and Washington (7.0%). All other states represent less than 5% of the pool as of the cut- off date. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. The trust, First Horizon Alternative Mortgage Securities Trust 2006-FA7, was created for the sole purpose of issuing the certificates. For federal income tax purposes, an election will be held to treat the trust as multiple real estate mortgage investment conduits. The Bank of New York will act as trustee. FREMONT HOME: Moody's Rates Class M-10 Certificates at Ba1 ---------------------------------------------------------- Moody's Investors Service assigned an Aaa rating to the senior certificates issued by Fremont Home Loan Trust 2006-3 and ratings ranging from Aa1 to Ba1 to the subordinate certificates in the deal. The securitization is backed by Fremont Investment & Loan originated, adjustable-rate (84%) and fixed-rate (16%), subprime mortgage loans acquired by Greenwich Capital Financial Products, Inc. The ratings are based primarily on the credit quality of the loans and on protection against credit losses provided by subordination, excess spread, and overcollateralization. The ratings also benefit from an interest-rate swap agreement and interest-rate cap agreement, both provided by The Bank of New York. Moody's expects collateral losses to range from 5.1% to 5.6%. Wells Fargo Bank, N.A. will service the mortgage loans. Moody's has assigned Wells Fargo its servicer quality rating of SQ1 as a servicer of subprime mortgage loans. These are the rating actions: * Fremont Home Loan Trust 2006-3 * Asset-Backed Certificates, Series 2006-3 Cl. I-A-1, Assigned Aaa Cl. II-A-1, Assigned Aaa Cl. II-A-2, Assigned Aaa Cl. II-A-3, Assigned Aaa Cl. II-A-4, Assigned Aaa Cl. M-1, Assigned Aa1 Cl. M-2, Assigned Aa2 Cl. M-3, Assigned Aa3 Cl. M-4, Assigned A1 Cl. M-5, Assigned A2 Cl. M-6, Assigned A3 Cl. M-7, Assigned Baa1 Cl. M-8, Assigned Baa2 Cl. M-9, Assigned Baa3 Cl. M-10,Assigned Ba1 The Class M-10 certificates were sold in privately negotiated transactions without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. GANNETT PEAK: Moody's Rates $19 Million Class D-1 Notes at Ba2 -------------------------------------------------------------- Moody's Investors Service reported that it assigned ratings to notes issued by Gannett Peak CLO I, Ltd. These are the rating actions: -- Aaa to $369,100,000 Million Class A-1a Senior Secured Floating Rate Notes, Due 2020; -- Aaa to $60,000,000 Million Class A-1b Senior Secured Revolving Floating Rate Notes, Due 2020; -- Aa2 to $41,000,000 Million Class A-2 Senior Secured Floating Rate Notes, Due 2020; -- A2 to $26,000,000 Million Class B-1 Senior Secured Deferrable Floating Rate Notes, Due 2020; -- A2 to $9,000,000 Million Class B-2 Senior Secured Deferrable Fixed Rate Notes, Due 2020; -- Baa2 to $33,500,000 Million Class C Senior Secured Deferrable Floating Rate Notes, Due 2020; -- Ba2 to $19,000,000 Million Class D-1 Secured Deferrable Floating Rate Notes, Due 2020; -- Ba2 to $5,000,000 Million Class D-2 Secured Deferrable Fixed Rate Notes, Due 2020, -- A3 to the Type I Composite Obligations, and -- Baa3 to the Type II Composite Obligations. Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Notes' governing documents, and are based on the expected loss posed to the Noteholders relative to receiving the present value of such payments. The ratings of the Notes reflect the credit quality of the underlying assets--which consist primarily of senior secured loans-- as well as the credit enhancement for the Notes inherent in the capital structure and the transaction's legal structure. The rating of the Type I Composite Obligations addresses solely the ultimate return of the Type I Rated Amount and Type I Notional Interest Amount. The rating of the Type II Composite Obligations addresses solely the ultimate return of the Type II Rated Balance. This cash flow CLO is managed by McDonnell Investment Management, LLC. GLENN UNDERWOOD: Case Summary & Five Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Glenn Richard Underwood fdba Underwood Associates dba Underwood Management Company dba Underwood Building Company dba Underwood Real Estate Company 6437 Chestnut Hill Court Clarkston, MI 48346 Bankruptcy Case No.: 06-55754 Chapter 11 Petition Date: October 30, 2006 Court: Eastern District of Michigan (Detroit) Judge: Thomas J. Tucker Debtor's Counsel: Charles D. Bullock, Esq. Stevenson & Bullock, PLC 29200 Southfield Road, Suite 210 Southfield, MI 48076 Tel: (248) 423-8200 Fax: (248) 423-8201 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lynda Carto, el al. Judgment $392,752 Case No. 04-056175-CB (On Appeal) c/o Dean J. Grouix, Esq. 363 West Big Beaver Road Suite 300 Troy, MI 48084 US Bank/NA ND Credit Card $3,766 4325 17th Avenue South Fargo, ND 58125 Navy Federal Credit Union Credit Card $2,500 820 Follin Lane Vienna, VA 22180 FNB Omaha Credit Card $2,129 1620 Dodge Street Omaha, NE 68197 American Express Credit Card $340 P.O. Box 297871 Fort Lauderdale, FL 33329 GS MORTGAGE: Fitch Places Low-B Ratings on Six Certificate Classes ------------------------------------------------------------------ GS Mortgage Securities Corporation II, 2006 GG8, commercial mortgage pass-through certificates are rated by Fitch Ratings: -- $69,950,000 class A-1 'AAA'; -- $940,740,000 class A-2 'AAA'; -- $52,875,000 class A-3 'AAA'; -- $111,500,000 class A-AB 'AAA'; -- $1,598,772,000 class A-4 'AAA'; -- $196,179,000 class A-1A 'AAA'; -- $424,288,000 class A-M 'AAA'; -- $302,305,000 class A-J 'AAA'; -- $4,242,880,299 class X* 'AAA'; -- $26,518,000 class B 'AA+'; -- $53,036,000 class C 'AA'; -- $37,125,000 class D 'AA-'; -- $37,125,000 class E 'A+'; -- $42,429,000 class F 'A'; -- $53,036,000 class G 'A-'; -- $47,733,000 class H 'BBB+'; -- $53,036,000 class J 'BBB'; -- $26,518,000 class K 'BBB-'; -- $26,518,000 class L 'BB+'; -- $15,911,000 class M 'BB'; -- $15,911,000 class N 'BB-'; -- $10,607,000 class O 'B+'; -- $10,607,000 class P 'B'; -- $15,911,000 class Q 'B-'; The $58,340,299 class S is not rated by Fitch. Classes A-1, A-2, A-3, A-AB, A-4, A-1A, A-M, A-J, B, C, D, E and F are offered publicly, while classes X, G, H, J, K, L, M, N, O, P, Q, and S are privately placed pursuant to Rule 144A of the Securities Act of 1933., The certificates represent beneficial ownership interest in the trust, primary assets of which are 160 fixed-rate loans having an aggregate principal balance of approximately $4,242,880,300, as of the cutoff date. GSC ABS: Moody's Rates $10 Mil. Class C Subordinate Notes at Ba1 ---------------------------------------------------------------- Moody's Investors Service reported it assigned ratings to notes issued by GSC ABS CDO 2006-4u, Ltd. These ratings were assigned: -- Aaa to Up to $502,000,000 Million Class A-S1VF Senior Secured Floating Rate Notes due 2046; -- Aaa to $85,000,000 Million Class A1 Senior Secured Floating Rate Notes due 2046; -- Aa2 to $45,000,000 Million Class A2 Senior Secured Floating Rate Notes due 2046; -- A2 to $45,000,000 Million Class A3 Secured Deferrable Floating Rate Notes due 2046; -- Baa2 to $33,000,000 Million Class B Mezzanine Secured Deferrable Floating Rate Notes due 2046; and, -- Ba1 to $10,000,000 Million Class C Mezzanine Secured Deferrable Floating Rate Notes due 2046. Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Note's governing documents, and are based on the expected loss posed to the Noteholders relative to receiving the present value of such payments. The ratings of the Notes reflect the credit quality of the underlying assets--which consist primarily of cash flow and synthetic RMBS assets -- as well as the credit enhancement for the Notes inherent in the capital structure and the transaction's legal structure. GSR MORTGAGE: Fitch Puts BB Rating on $2.75-Mil Class B-4 Certs --------------------------------------------------------------- Fitch rates GSR Mortgage Loan Trust, series 2006-9F, residential mortgage pass-through certificates: -- $1,330,787,000 classes 1A-1, 2A-1, 3A-1, 4A-1 through 4A- 5, 5A-1 through 5A-4, 6A-1, 6A-2, 7A-1, 8A-1, 9A-1 and A-X (senior certificates), 'AAA'; -- $11,726,000 class M-1, 'AA+'; -- $17,238,000 class B-1, 'AA'; -- $7,584,000 class B-2, 'A'; -- $4,137,000 class B-3, 'BBB'; -- $2,758,000 class B-4, 'BB'; and -- $2,068,000 class B-5, 'B.' The 'AAA' rating on the senior certificates reflects the 3.50% subordination provided by the 0.85% class M-1, 1.25% class B-1, 0.55% class B-2, 0.30% class B-3, 0.20% privately offered class B- 4, 0.15% privately offered class B-5, and 0.20% privately offered class B-6. Class B-6 is not rated by Fitch. The ratings also reflect the quality of the underlying collateral, the strength of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A., which is rated 'RMS1' by Fitch. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Classes 4A-1and 4A-5 are the exchangeable certificates. All other classes are regular certificates. All or a portion of certain classes of offered certificates may be exchanged for a proportionate interest in the related exchangeable certificates. All or a portion of the exchangeable certificates may also be exchanged for the related offered certificates in the same manner. This process may occur repeatedly. The classes of offered certificates and of exchangeable certificates that are outstanding at any given time, and the outstanding principal balances and notional amounts of these classes, will depend upon any related distributions of principal, as well as any exchanges that occur. Offered certificates and exchangeable certificates in any combination may be exchanged only in the proportions shown in the governing documents. Holders of exchangeable certificates will be the beneficial owners of a proportionate interest in the certificates in the related combination group and will receive a proportionate share of the distributions on those certificates. On each distribution date when exchangeable certificates are outstanding, principal distributions from the applicable related certificates are allocated to the related exchangeable certificates that are entitled to principal. The payment characteristics of the classes of exchangeable certificates will reflect the payment characteristics of their related classes of regular certificates. As of the cut-off date, Oct. 1, 2006, the pool of loans consists of 2,359 fixed-rate mortgage loans, which have 15-year through 30- year amortization terms, with an approximate balance of $1,379,058,850. The mortgage pool has an average unpaid principal balance of $584,595 and a weighted average FICO score of 742. The weighted average amortized current loan-to-value ratio is 70.22%. Rate/Term and cash-out refinances represent 21.77% and 28.60%, respectively, of the mortgage loans. The states that represent the largest geographic concentration of mortgaged properties are California (35.53%), Florida (8.68%), Virginia (6.22%), and Maryland (4.80%). All other states comprise fewer than 5% of properties in the pool. None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. GS Mortgage Securities Corp. purchased the mortgage loans from each seller and deposited the loans in the trust, which issued the certificates, representing undivided and beneficial ownership in the trust. For federal income tax purposes, the securities administrator will cause multiple real estate mortgage investment conduit elections to be made for the trust. Wells Fargo Bank, N.A. will act as securities administrator and U.S. Bank, N.A. will serve as the trustee. GUITAR CENTER: Solid Operations Cue Moody's to Lift Rating ---------------------------------------------------------- Moody's Investors Service upgraded the corporate family rating of Guitar Center, Inc. to Ba2 and moved the rating outlook to stable from positive. The upgrade acknowledges Guitar Center's continued track record of solid operating performance and the more recent reduction in leverage as a result of all of its $100 million 4% Senior Convertible Notes converting into common stock. This rating is upgraded: -- Corporate family rating to Ba2 from Ba3. The Ba2 corporate family rating and stable outlook is reflective of Guitar Center's very narrow product focus in the music products industry and its relatively moderate scale with fiscal 2005 revenues of nearly $1.8 billion, both attributes correlate to the Ba rating category. The rating also balances the company's very high seasonality, which correlates to the B rating category, with its conservative balance sheet and healthy profitability, which results in predominantly investment grade credit metrics. The corporate family rating is also supported by the company's financial policies that are indicative of a Ba rating level. The company has a history of modest debt financed acquisitions and its external liquidity is provided by a $200 million asset based revolver (unrated). Lending further support to the rating category are the company's national geographic diversification and market position as the largest retailer of musical instruments and recording tools within the United States, both of which are more indicative of an investment grade rating category. The company is very strongly positioned in the Ba2 rating category. However, the rating category is weighted down by the ongoing challenges at its Music & Arts Center division, which currently generates negative operating income, as well as the company's desire to continue its high growth rate by expanding the Guitar Center concept outside its historic demographic into secondary and tertiary markets. The secondary and tertiary markets generate a lower level of sales and the company's high growth strategy constrains the company's free cash flow generation to a level more indicative of Caa rating category. The stable outlook reflects Moody's expectation that Guitar Center will likely continue to make modest debt financed acquisitions while still maintaining predominantly investment grade credit metrics. It also reflects Moody's expectation that Guitar Center will maintain good liquidity from external sources as free cash flow will likely continue to be constrained by its store expansion program. Further positive ratings momentum would require the company to maintain credit metrics at its current levels while bringing its Music & Arts Center division to appropriate levels of profitability and demonstrating that the secondary and tertiary store formats will not erode the company's overall profitability. Given the recent upgrade it is highly unlikely that ratings would be downgraded. However, ratings could move downward should the company's liquidity deteriorate, financial policies become more aggressive or operating performance decline such that Debt/EBITDA rises above 4x or EBITA/Interest Expense falls below 4x. Guitar Center, Inc. is the largest musical instrument and recording tool retailer in the United States with over 280 retails stores and a direct response business. It operates three distinct musical instruments retail businesses; Guitar Centers, Musician's Friend, its direct response subsidiary, and Music & Arts Center. Total revenues for fiscal year ended January 28, 2006 were approximately $1.8 billion. H&R ELECTRIC: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: H&R Electric, Inc. 44039 North Groesbeck Highway Clinton Township, MI 48036 Bankruptcy Case No.: 06-55839 Chapter 11 Petition Date: October 30, 2006 Court: Eastern District of Michigan (Detroit) Judge: Steven W. Rhodes Debtor's Counsel: Charles J. Taunt, Esq. Charles J. Taunt & Associates, PLLC 700 East Maple Road Second Floor Birmingham, MI 48009-6359 Tel: (248) 644-7800 Fax: (248) 647-5902 Total Assets: $1,368,028 Total Debts: $4,139,793 Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Allen Electric $478,055 31750 Plymouth Road Livonia, MI 48151 IBEW Insurance Fund $338,977 2277 East 11 Mile Road Warren, MI 48092 Brighton Electric Supply Co., Inc. $247,689 c/o Samuel D. Sweet, Trustee P.O. Box 757 Ortonville, MI 48462 Zervos Group $176,645 24724 Farmbrook Road Southfield, MI 48037 National Time & Signal $132,367 28045 Oakland Oaks Court Wixom, MI 48393 PM Technologies $80,772 Architectural Systems Group LLC $78,213 Madison Electric $60,657 Medler Electric Company $54,643 Home Depot $48,526 Wesco $47,276 REK $46,442 City Electric $44,853 ISM Electric $40,000 Caniff Electric $35,120 Park Metal $29,578 GE Supply $29,149 1 COMM $23,467 National Electrical Benefit Fund $18,897 Premier Electronics $16,744 HALCYON LOAN: Moody's Rates $16MM Cl. D Mezzanine Notes at Ba2 -------------------------------------------------------------- Moody's Investors Service reported it has assigned these ratings to notes issued by Halcyon Loan Investors CLO I, Ltd., a collateral loan obligation: -- Aaa to the $270,000,000 Million Class A-1A First Priority Senior Secured Floating Rate Notes Due November 20, 2020 -- Aa1 to the $30,000,000 Million Class A-1B Second Priority Senior Secured Floating Rate Notes Due November 20, 2020 -- Aa2 to the $25,000,000 Million Class A-2 Third Priority Senior Secured Floating Rate Notes Due November 20, 2020 -- A2 to the $20,000,000 Million Class B Fourth Priority Mezzanine Secured Deferrable Floating Rate Notes Due November 20, 2020 -- Baa2 to the $18,000,000 Million Class C Fifth Priority Mezzanine Secured Deferrable Floating Rate Notes Due November 20, 2020 -- Ba2 to the $16,000,000 Million Class D Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due November 20, 2020 Moody's ratings of the notes address the ultimate cash receipt of all required interest and principal payments, as provided by the notes' governing documents, and are based on the expected loss posed to noteholders, relative to the promise of receiving the present value of such payments. Halcyon Loan Investors, L.P. will be the collateral manager of the transaction. HALCYON STRUCTURED: Moody's Rates $16MM Class E Notes at Ba2 ------------------------------------------------------------ Moody's Investors Service reported that it assigned ratings to notes issued by Halcyon Structured Asset Management Long Secured and Short Unsecured CLO 2006-1 Ltd. These are the rating actions: -- Aaa to $261,600,000 Million Class A Senior Secured Floating Rate Notes, Due 2018; -- Aa2 to $28,000,000 Million Class B Senior Secured Floating Rate Notes, Due 2018; -- A2 to $22,000,000 Million Class C Senior Secured Deferrable Floating Rate Notes, Due 2018; -- Baa2 to $28,000,000 Million Class D Secured Deferrable Floating Rate Notes, Due 2018 and -- Ba2 to $16,000,000 Million Class E Secured Deferrable Floating Rate Notes, Due 2018. Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Note's governing documents, and are based on the expected loss posed to the Noteholders relative to receiving the present value of such payments. The ratings of the Notes reflect the credit quality of the underlying assets--which consist primarily of U.S. Dollar denominated senior secured loans, second lien loans and structured finance securities -- as well as the credit enhancement for the Notes inherent in the capital structure and the transaction's legal structure. This cash-flow CLO is managed by Halcyon Structured Asset Management L.P. HUNTSMAN CORP: Moody's Rates Proposed $400MM Senior Notes at B3 --------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Huntsman International LLC's, a wholly owned subsidiary of Huntsman Corporation, proposed $400 million senior subordinated notes. Moody's also assigned Loss Given Default Assessment of LGD6 to these notes in accordance with its Loss-Given-Default rating methodology that was initially implemented at the end of September 2006. Proceeds from the private offering of the proposed US dollar and euro denominated notes will be used to redeem part of the company's outstanding 10 1/8% senior subordinated notes due 2009. The corporate family ratings of B1 for both HI and HC were affirmed and the rating outlooks for both companies remain developing. These summarizes the ratings activity: * Huntsman International LLC -- Proposed Sr. Sub Notes, $400 million, due 2013 and 2014, B3, LGD6, 91% The proposed transaction is a modest credit positive for HC as it will reduce the company's interest expense by redeeming high coupon debt. The rating outlook was changed to developing from positive in March 2006 after HC's management announced plans to separate HC's Base Chemicals and Polymer segments from HC's differentiated segments. The developing outlook reflects the possibility of additional transactions, over the medium term, to further separate the company. The outlook also reflects that the ratings may change subject to the development of a more formal debt structure and financial philosophy for the remaining businesses to be held at the differentiated segments. Moody's believes the decision to pursue a split by HC's management was prompted by ongoing concern over stock price valuation along with the receipt of an indication of interest from an outside party, occurring in late 2005, regarding an acquisition of all of the outstanding stock of HC. Moody's continues to believe that objectives for incremental debt reduction approaching $1.45 billion by the end of 2007 are possible. Upon completion of debt reduction with proceeds of the proposed sale of Huntsman's European Commodities Business to SABIC, the ratings outlook may move to positive. The notching of the proposed senior subordinated notes at B3 and LGDA of LGD6 take into consideration the unconditional guarantees, on a subordinated basis, from all of HI's domestic subsidiaries and certain foreign subsidiaries. LGDAs 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%). Huntsman Corporation is a global manufacturer of differentiated and commodity chemical products. Huntsman's products are used in a wide range of applications, including those in the adhesives, aerospace, automotive, construction products, durable and non- durable consumer products, electronics, medical, packaging, paints and coatings, power generation, refining and synthetic fiber industries. Huntsman had revenues for the twelve months ended September 30, 2006 of $11 billion (after UK Base Chemical and Polymer Divestiture). ICEWEB INC: Posts $1.04 Mil. Net Loss in 2006 Third Fiscal Quarter ------------------------------------------------------------------ IceWeb, Inc. has filed its third fiscal quarter financial statements for the three-month period ended June 30, 2006 with the Securities and Exchange Commission. For the quarter ended June 30, 2006, IceWeb reported a $1,040,201 net loss on $835,555 of revenues, compared to a $102,079 net loss on $2,049,483 of revenues for the same period in 2005. At June 30, 2006, the company's balance sheet showed $2,001,994 in total assets, $1,918,689 in total liabilities, and $83,305 in stockholders' equity. Additionally, accumulated deficit at June 30, 2006 stood at $9,058,619. At June 30, 2006, the company's balance sheet also showed strained liquidity with $788,949 in total current assets available to pay $1,689,001 in total current liabilities. A full-text copy of the company's third fiscal quarter report is available for free at: http://researcharchives.com/t/s?1435 Going Concern Doubt As reported in the Troubled Company Reported on Jan. 24, 2006, Sherb & Co., LLP, expressed substantial doubt about IceWeb, Inc.'s ability to continue as a going concern after it audited the company's financial statements for the fiscal years ended Sept. 30, 2005 and 2004. The auditing firm pointed to the company's net losses for fiscal year 2005 and 2004. About IceWEB Headquartered in Herndon, Virginia, IceWeb, Inc. -- http://www.iceweb.com/-- is a diversified technology company. The company is a provider of hosted web-based collaboration solutions that enable organizations to establish Internet, Intranet, and email/collaboration services with little or no up-front capital investment. . The company also provides consulting services to larger enterprise and government customers including network infrastructure, enterprise email/collaboration, and Internet/Intranet portal implementation and support services. The company also markets an array of information technology services and third party computer network hardware and software to large enterprise and government clients. INLAND FIBER: Court Approves Dechert as Bankruptcy Counsel ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware authorized Inland Fiber Group, LLC, and its debtor-affiliate, Fiber Finance Corp., to employ Dechert LLP as their bankruptcy counsel. As reported in the Troubled Company Reporter on Sept. 1, 2006, Dechert is expected to: a. provide legal advice with respect to the Debtors' powers and duties as debtors-in-possession in the continued operation of their business and management of their properties; b. take all necessary action to protect and preserve the estates of the Debtors, including prosecuting actions on the Debtors' behalf, defending any actions commenced against the Debtors, negotiating disputes in which the Debtors are involved, and preparing objection to claims filed against the Debtors' estates; c. prepare on behalf of the Debtors, as debtors-in- possession, all necessary motions, applications, answers, orders, reports, and other papers in connection with the administration of the Debtors' estates; d. negotiate and draft any agreements for the sale or purchase of any assets of the Debtors, if appropriate; e. negotiate and draft a plan of reorganization and all documents related thereto, including, but not limited to, disclosure statements and related solicitation papers; f. take all steps necessary to confirm and implement a plan of reorganization, including, if necessary, modifications thereof and negotiate financing therefor; and g. perform all other necessary and appropriate legal services in connection with the prosecution of the Debtors' chapter 11 cases. The Debtors disclosed that attorneys at Dechert bill between $250 to $875 per hour while paralegals bill between $145 to $220 per hour. Glenn E. Siegel, Esq., a partner at Dechert, assured the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Siegel can be reached at: Glenn E. Siegel, Esq. Dechert LLP 30 Rockefeller Plaza New York, NY 10112-2200 Tel: (212) 698-3500 Fax: (212) 698-3599 http://www.dechert.com/ Headquartered in Klamath Falls, Oregon, Inland Fiber Group LLC, aka U.S. Timberlands Klamath Falls LLC, and its affiliate Fiber Finance Corp., grow trees and sell logs, standing timber, and timberland. The Debtors filed a chapter 11 petition on Aug. 18, 2006 (Bankr. D. Del. Case Nos. 06-10884 & 06-10885). William P. Bowden, Esq. at Ashby & Geddes P. A. and Glenn E. Siegal, Esq. at Dechert LLP represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, Inland Fiber reported $81,890,311 in total assets and $264,433,754 in total liabilities while its debtor-affiliate, Fiber Finance, disclosed $1,048 in total assets and $263,074,983 in total debts. L&M VIDEO: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------- Debtor: L & M Video Productions, Inc. dba WNGT TV P.O. Box 1362 Toledo, OH 43603 Bankruptcy Case No.: 06-33114 Type of Business: The Debtor operates the WNGT-TV station in Toledo, Ohio. See http://www.wngt.com/ The Debtor filed for chapter 11 protection on May 19, 2006 (Bankr. N.D. Ohio Case No. 0631157). Chapter 11 Petition Date: October 30, 2006 Court: Northern District of Ohio (Toledo) Judge: Richard L. Speer Debtor's Counsel: Grady L. Pettigrew, Jr., Esq. Pettigrew & Associates, LLC 115 West Main, Suite 400 Columbus, OH 43215-5099 Tel: (614) 224-1113 Fax: (614) 228-0701 Estimated Assets: $1,917,750 Estimated Debts: $1,185,975 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Gary & Karen Stewart Commercial Lease $200,000 24 East Woodruff Avenue Toledo, OH 43624 Alice V. Farley Trust Business Loan $140,000 c/o David Rohrbacker 405 Madison Avenue, 8th Floor Toledo, OH 43604 Mildred Clark Business Loan $113,000 11 South Centennial Road Holland, OH 43528 Eastman & Smith Professional Services $43,000 One Seagate 24th Floor Toledo, OH 43604 Melvin E. Harbaugh Business Loan $41,365 c/o David Rohrbacker 405 Madison Avenue, 8th Floor Toledo, OH 43604 The Toledo Journal Business Loan $30,000 Palace Sports and Programming Rights $26,000 Entertainment, Inc. Kevin Kenney & Associates Professional Services $15,000 John Gray & Co. S/H Tax Consultant $13,500 American Tower Trade Debt $12,600 John Lepre Business Loan $7,700 WNWO-TV24 Trade Debt $5,500 B&J Video, Inc. Trade Debt $5,310 Warner Brothers Television Programming Rights $5,200 Keith Mitchell Professional Services $4,000 Robert Culp $3,500 James Winston Professional Services $3,000 Robert Webb $2,500 Steve Coran Professional Services $2,500 Poggermeyer Engineering Professional Services $2,300 LEHMAN MORTGAGE: Fitch Assigns B Rating to $3 Mil Class B7 Certs ---------------------------------------------------------------- Fitch rates Lehman Mortgage Trust $751.7 million mortgage pass- through certificates, series 2006-7: -- $702.3 million classes 1-A1 through 1-A10, 2-A1 through 2- A11, 3-A1 through 3-A7, 4-A1, 4-A2, 5-A1 through 5-A8, AP, AX, and R 'AAA'; -- $17 million class M 'AA+'; -- $10.2 million class B1 'AA'; -- $8.3 million class B2 'A'; -- $3 million class B3 'A-'; -- $3.8 million class B4 'BBB'; -- $1.5 million class B5 'BBB-'; -- $2.6 million class B6 'BB'; -- $3 million class B7 'B'; The 'AAA' rating on the senior certificates reflects the 6.90% total credit enhancement provided by the 2.25% class M, the 1.35% class B1, the 1.10% class B2, the 0.40% class B3, the 0.50% class B4, the 0.20% class B5, the 0.35% class B6, and the 0.40% class B7, as well as the non-rated 0.35% class B8. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Aurora Loan Services LLC (rated 'RMS1-' by Fitch) and the primary servicing capabilities of Aurora Loan Services LLC, and IndyMac Bank, F.S.B. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Classes 1-A4, 1-A10, 2-A1, 2-A2, 2-A3, 3-A1, 5-A1, 5-A6, 5-A7, 5- A8 are the exchangeable certificates. Classes 1-A7, 1-A8, 1-A9, 2-A6 through 2-A11, 3-A5, 3-A6, 3-A7, 5-A2 through 5-A5 are the regular certificates. All or a portion of certain classes of offered certificates may be exchanged for a proportionate interest in the related exchangeable certificates. All or a portion of the exchangeable certificates may also be exchanged for the related offered certificates in the same manner. This process may occur repeatedly. The classes of offered certificates and of exchangeable certificates that are outstanding at any given time, and the outstanding principal balances and notional amounts of these classes, will depend upon any related distributions of principal, as well as any exchanges that occur. Offered certificates and exchangeable certificates in any combination may be exchanged only in the proportions shown in the governing documents. Holders of exchangeable certificates will be the beneficial owners of a proportionate interest in the certificates in the related combination group and will receive a proportionate share of the distributions on those certificates. On each distribution date when exchangeable certificates are outstanding, principal distributions from the applicable related certificates are allocated to the related exchangeable certificates that are entitled to principal. The payment characteristics of the classes of exchangeable certificates will reflect the payment characteristics of their related classes of regular certificates. The aggregate mortgage pool trust consists of 3,409 fixed-rate, conventional, first lien residential mortgage loans, substantially all of which have original terms to stated maturity of 30 years. As of the cut-off date (Oct. 1, 2006), the mortgages have an aggregate principal balance of approximately $754,351,721. The mortgage pool has a weighted average original loan-to-value ratio of 72.80%, a weighted average coupon of 7.134%, and a weighted average remaining term of 351. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. The mortgage loans were primarily originated or acquired by IndyMac Bank, F.S.B, Lehman Brothers Bank, FSB, and GE Capital Mortgage Services, Inc. Structured Asset Securities Corporation, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits. MASTR INC: Fitch Rates $3.7 Million Class B-2 Certificates at BB ---------------------------------------------------------------- Mortgage Asset Securitization Transactions, Inc., $234.9 million MASTR Specialized Loan Trust 2006-03, mortgage pass-through certificates, is rated by Fitch Ratings: -- $181,294,000 class A (senior certificates) 'AAA'; -- $8,760,000 class M-1 'AA+'; -- $8,152,000 class M-2 'AA'; -- $5,110,000 class M-3 'AA-'; -- $4,501,000 class M-4 'A+'; -- $4,380,000 class M-5 'A'; -- $4,258,000 class M-6 'A-'; -- $3,771,000 class M-7 'BBB+'; -- $2,433,000 class M-8 'BBB'; -- $3,285,000 class M-9 'BBB-'; -- $5,231,000 class B-1 'BB+'; -- $3,760,325 class B-2 'BB'. Credit enhancement for the 'AAA' class A certificates reflects the 26.15% total credit enhancement provided by the 3.60% class M1, the 3.35% class M2, the 2.10% class M3, the 1.85% class M4, the 1.80% class M5, the 1.75% class M6, the 1.55% class M7, the 1.00% class M8, the 1.35% class M9, the 2.15% class B1, the 1.55% class B2, as well as the 4.10% target overcollateralization and monthly excess interest. 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 fixed- and adjustable-rate mortgage loans secured by first and second liens on one- to four-family residential properties, with an aggregate principal balance of $243,348,055. As of the cut-off date, Oct. 1, 2006, the mortgage loans had a weighted average original loan-to-value ratio of 82.61%, current loan-to-value ratio of 82.24%, weighted average current FICO score of 640, weighted average coupon of 7.56%, and an average principal balance of $148,837. Single-family properties account for approximately 77% of the mortgage pool, two- to four-family properties 9.66%, and condos 8.43%. Owner occupied properties make up 86.89% of the pool. The states that represent the largest portion of mortgage loans are California (21.18%), Florida (10.77%), and Delaware (5.86%). All other states represent less than 5% of the pool as of the cut-off date. None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. Mortgage Asset Securitization Transactions, Inc. deposited the loans into the trust, which issued the certificates, representing beneficial ownership in the trust. For federal income tax purposes, the Trust Fund will consist of multiple real estate mortgage investment conduits. Deutsche Bank National Trust Company will act as trustee. GMAC Mortgage Corporation, rated 'RSS1-' by Fitch, and Wells Fargo Bank N.A., rated 'RSS2+', will act as servicers for this transaction, with Wells Fargo Bank N.A., rated 'RMS1,' acting as master servicer. MCCARTY COMPANY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: The McCarty Company, Inc. 1801 H Street, Suite B1-190 Modesto, CA 95354 Bankruptcy Case No.: 06-90667 Debtor-affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- McCarty Partners 06-90668 Patrick N. McCarty 06-90669 Chapter 11 Petition Date: October 30, 2006 Court: Eastern District of California (Modesto) Judge: Robert S. Bardwil Debtors' Counsel: David C. Johnston, Esq. 1020 15th Street, Suite 10 Modesto, CA 95354-1132 Tel: (209) 578-9009 Fax: (209) 578-5909 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtors did not file a list of their 20 largest unsecured creditors. MORGAN STANLEY: Subprime Deals Cue Moody's to Chip Low-B Ratings ---------------------------------------------------------------- Moody's Investors Service has downgraded ten tranches issued by Morgan Stanley Dean Witter Capital I, Inc. The underlying collateral for these subprime deals consists of adjustable and fixed rate residential mortgage loans that were originated by New Century Mortgage Corporation. The downgrades are based on the low credit enhancement levels compared to the current loss projections. These deals are not performing as anticipated due to the rising loss severities, delinquency rates, and cumulative realized loss percentages. Also, the overcollateralization amount continues to decline causing the lower tranches to be more vulnerable to defaults. Complete rating actions are: * Issuer: Morgan Stanley Dean Witter Capital I Inc., Series 2001-NC4 -- Class B-1, Downgraded from Baa3 to B1. * Issuer: Morgan Stanley Dean Witter Capital I Inc., Series 2002-NC1 -- Class B-1, Downgraded from Ba1 to B1. * Issuer: Morgan Stanley Dean Witter Capital I Inc., Series 2002-NC3 -- Class B-1, Downgraded from Baa2 to Ba3. -- Class B-2, Downgraded from Baa3 to B1. * Issuer: Morgan Stanley Dean Witter Capital I Inc., Series 2002-NC4 -- Class B-1, Downgraded from Baa2 to Baa3. -- Class B-2, Downgraded from Baa3 to B1. * Issuer: Morgan Stanley Dean Witter Capital I Inc., Series 2002-NC5 -- Class B-1, Downgraded from Baa2 to Ba1. -- Class B-2, Downgraded from Baa3 to B2. * Issuer: Morgan Stanley ABS Capital I Inc., Series 2002-NC6 -- Class B-1, Downgraded from Baa2 to Ba2. -- Class B-2, Downgraded from Baa3 to B2. NOBLE DREW: Court Okays Slochowsky & Rappaport as Special Counsel ----------------------------------------------------------------- The Honorable James M. Peck of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan gave Noble Drew Ali Plaza Housing Corp., authority to employ: -- Slochowsky & Slochowsky as its special litigation counsel to commence certain nonpayment proceedings, and -- Rappaport, Hertz, Cherson & Rosenthal, P.C., as special litigation counsel to commence certain holdover proceedings. As reported in the Troubled Company Reporter on Sept. 15, 2006, The Court authorized and approved a management agreement between the Debtor and Wavecrest Management Team Ltd. for its property. Under the management agreement, Wavecrest is authorized to: a. manage the Debtor's Property; b. collect all rents that accrue from tenants, lawful residents, or governmental agencies; and c. commence eviction proceedings against any person in possession of an apartment belonging to the Debtor who has failed to comply with his obligation to pay rent. The management agreement also authorizes Wavecrest to initiate: a. nonpayment proceedings against tenants or residents for nonpayment of rent that accrued and remains unpaid on or after June 1, 2006; and b. initiate holdover proceedings against any residents who are not lawful occupants of their apartments. Records maintained by Wavecrest indicate that: -- more than 70 tenants or residents have failed to pay rent since June 1, 2006; and -- no fewer than 100 residents are not lawful occupants of their respective apartments. Based on these determinations, Wavecrest and the Debtor have deemed it necessary and beneficial to employ the services of Slochowsky and Rappaport as special litigation counsel. The commencement of the non-payment proceedings and holdover proceedings will benefit the Debtor's efforts to sell its real property and increase its cash flow. Slochowsky Retention Slochowsky is expected to: (a) give legal advice with respect to initiating every nonpayment proceeding, including filing of the petition, discovery, settlement, trial, and, if necessary, eviction; (b) prepare, on behalf of the Debtor, all necessary applications, pleadings, motions, and other legal documents required to litigate every nonpayment proceeding; (c) perform all legal services for the Debtor, which may be necessary to conclude every nonpayment proceeding; (d) appear at all hearings, court appearances, pre-trial conferences, depositions (if necessary), meetings, and trial; and (e) perform any other tasks required or requested by the Debtor in order to facilitate a resolution of each and every nonpayment proceeding. Slochowsky will be paid its usual and customary fees for services rendered. Papers filed with the Court did not indicate the Firm's hourly rates. Slochowsky neither represents nor has any interest adverse to the Debtor's case or with respect to the matters in which it is to be retained. Rappaport Retention Rappaport is expected to: (a) give legal advice with respect to commencing every holdover proceeding including filing the petition, discovery, settlement, trial, and if necessary, eviction; (b) prepare, on behalf of the Debtor, all necessary applications, pleadings, motions, and other legal documents required to litigate every holdover proceeding; (c) perform all legal services for the Debtor, which may be necessary to conclude every holdover proceeding; (d) appear at all hearings, court appearances, pre-trial conferences, depositions (if necessary), meetings, and trial; (e) collaborate with various local, city and state law enforcement agencies where and when appropriate; and (f) perform any other tasks required or requested by the Debtor in order to facilitate a resolution of every holdover proceeding. Rappaport will be paid its usual and customary fees for services rendered. Papers filed with the Court did not indicate the Firm's hourly rates. Rappaport neither represents nor has any interest adverse to the Debtor's case or with respect to the matters in which it is to be retained. About Noble Drew Headquartered in Brooklyn, New York, Noble Drew Ali Plaza Housing Corp., filed for chapter 11 protection on March 25, 2005 (Bankr. S.D.N.Y. Case No. 05-11915). Gerard R. Luckman, Esq., at Silverman Perlstein & Acampora, LLP, represents the Debtor. Martin G. Bunin, Esq., at Alston & Bird LLP represents the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed total assets of $43,500,000 and total debts of $18,639,981. NORTHWEST AIRLINES: Wants Boeing 787 Aircraft Agreements Approved ----------------------------------------------------------------- Northwest Airlines Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to approve and authorize the implementation of a Term Sheet among the Debtors, The Boeing Company, and Boeing Capital Loan Corporation. The Debtors also seek permission from the Court to file the agreements under seal to protect highly sensitive commercial information, including the original and amended terms of the financings provided by Boeing, the amounts of the credits to be issued by Boeing to make improvements on certain aircraft, and terms concerning the purchase of 787 Aircraft. Northwest Airlines, Inc., and The Boeing Company and Boeing Capital Loan Corporation are parties to agreements for the purchase of several Boeing model 787 aircraft. Northwest Airlines also entered into a joint agreement with Boeing and Rolls-Royce plc, pursuant to which Boeing and Rolls- Royce agreed to facilitate Northwest's acquisition of the 787 aircraft. The acquisition of the new 787 Aircraft for Northwest's fleet is important for its future operations and business plans, both to replace aircraft that are being retired from its fleet, and to open new market opportunities that it is not currently equipped to serve profitably, Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, relates. Prepetition Agreements Under the Joint Agreement, Boeing's commitment to facilitate the acquisition of the 787 aircraft may be affected by the status of the prepetition loans provided by Boeing to the Debtor and of the other prepetition agreements between them, Mr. Ellenberg tells Judge Gropper. Northwest and Boeing are parties to prepetition finance and security agreements, pursuant to which Northwest obtained loans from Boeing secured by these collateral: -- three Boeing model 747-400 aircraft with Tail Nos. N667US, N668US and N670US and two spare Pratt & Whitney model PW4056 engines; -- three Boeing model 757 aircraft with Tail Nos. N591NW, N592NW and N593NW; -- certain accounts receivable; -- common stock in certain regional carriers; and -- certain equipment, including certain aircraft, spare engines and spare aircraft parts. From time to time, the parties have entered into stipulations extending the Section 1110 period with respect to the 757 Aircraft, under which the Debtor made certain payments to Boeing, which were applied in accordance with the applicable loan agreements. The 747 Loan is not subject to Section 1110 of the Bankruptcy Code. The A/R Loan, the Stock Loan, and the Equipment Loan are cross- collateralized, and are also secured by Northwest Airlines' rights in the 787 Purchase Agreement. Under the A/R Loan, Northwest borrowed funds from Boeing on a revolving basis, with borrowing limits based upon the value of the receivables that serve as collateral under the agreement. The collateral includes: (a) receivables the obligor of which is American Express Travel Related Services Company, Inc.; (b) receivables arising from the shipment of freight or cargo, both billed and unbilled; (c) receivables arising from the air transportation of passengers, excluding, however, Amex Receivables and all receivables, the obligor of which is a credit card company other than American Express; and (d) certain rights relating to the receivables. Since the Debtors' bankruptcy filing, all proceeds of the prepetition receivables that have been collected in certain designated accounts and that secure the A/R Loan have been collected and placed into a designated cash collateral account. At all times from and after the Debtors' bankruptcy filing, the aggregate value of the collateral securing the prepetition loans has exceeded, and currently exceeds, the aggregate amount outstanding under the loans. Term Sheet To further its reorganization efforts, Northwest Airlines has negotiated with Boeing to facilitate its acquisition of the 787 Aircraft and to restructure certain of the prepetition financing arrangements. The parties' negotiations culminated in the execution of a Restructuring Term Sheet/Northwest Airlines/Boeing dated Oct. 19, 2006. (a) Assumption of 787 Purchase Agreement Pursuant to the Term Sheet, Northwest will assume the 787 Purchase Agreement and will pay all unpaid pre-delivery deposits owing under the agreement. The Debtor's promise to perform its obligations under the agreement will serve as adequate assurance of its future performance. In the event of any breach of the 787 Purchase Agreement prior to the effective date of a reorganization plan, or in certain liquidation events, Boeing's damages in any event would be limited. (b) Continuing Obligations under Prepetition Loans Northwest Airlines agrees to pay all past due, scheduled principal payments and accrued and unpaid interest, at the non- default rate, under the 747 Loan. The 747 Loan will remain as in effect prior to the Petition Date, and the Debtor will make all payments as they become due. In addition, the Debtor and Boeing will amend the 757 Loans to reduce the principal indebtedness relating to each 757 Loan and to modify the amortization schedules correspondingly. After giving effect to the amendment, the value of the collateral securing each 757 Loan will exceed the aggregate amount outstanding under the loan. The reduction of the 757 Loan indebtedness will be reversed if Northwest Airlines confirms a plan of reorganization that does not provide for treatment of the financings from Boeing or the 787 Purchase Agreement in a manner consistent with the Term Sheet. Boeing will be entitled to an allowed, non-priority unsecured claim equal to the amount of reduction in principal. With respect to the Equipment Loan, Northwest will pay all past due, scheduled principal payments and all accrued and unpaid interest, at the non-default rate, and will continue to perform its obligations under it. (c) Credit Advances under A/R Loan Northwest will grant Boeing a first priority security interest in its postpetition receivables of the same type as the prepetition collateral securing the A/R Loan, but excluding passenger facility charges prior to the effective date of its plan of reorganization. Boeing will make a new advance of credit under the A/R Loan, and the Debtor will use the new advance and the prepetition cash collateral to repay the outstanding principal balance and accrued and unpaid interest, at the non-default rate, under the A/R Loan and the Stock Loan, without premium or penalty. Boeing will release the remaining prepetition cash collateral from its security interest, and the funds will become part of the Debtor's unrestricted cash. The Stock Loan will be terminated for all purposes and Boeing will release its security interests in the stock collateral thereunder. Thereafter, Boeing will continue to advance revolving credit to Northwest Airlines in accordance with the A/R Loan agreement, provided that: (i) the maximum amount of credit available will be limited to the principal amount outstanding under the A/R Loan on the Petition Date; and (ii) prior to the effective date of a plan of reorganization in the Debtor's case, the borrowing base for the A/R Loan will not include passenger facility charges. (d) Loans Deemed Postpetition Financings Each of the prepetition loans, other than the Stock Loan, will be deemed a postpetition financing, and Boeing will receive the rights and protections customarily provided to a postpetition credit provider, including: * a superpriority administrative claim under Section 364(c)(1) with respect to any claim arising from any failure by Northwest to perform its obligations under the A/R Loan, and * a Section 507(b) priority claim with respect to any other failure by the Debtor to perform its postpetition obligations under the loans. Mr. Ellenberg tells the Court that Boeing is unwilling to provide postpetition credit under the A/R Loan, and Northwest is unable to refinance the Equipment Loan, the 757 Loan, or the 747 Loan on an unsecured or superpriority basis. Thus, he says, continuing Boeing's prepetition security interests in the collateral is appropriate as Northwest continues to perform postpetition under the loans. The automatic stay will be modified to permit Boeing, upon three business days' notice to the Debtor after the occurrence of an Event of Default after approval of the Term Sheet, to exercise all of its rights and remedies without further Court order. (e) Other Terms The parties have agreed to resolve certain of Boeing's claims against Northwest Airlines: (i) Boeing's reclamation claim will be allowed as an administrative claim for $145,301; and (ii) Boeing's claim for goods and services it provided prepetition will be allowed as a general unsecured claim for $1,354,800. In the event it assumes an executory contract associated with the general unsecured claim, the Debtor will not be required to cure the obligation underlying the claim as part of the assumption. Moreover, Boeing will issue a credit to the Debtor to cover the first portion of the purchase price of certain upgrades to a number of other Boeing-manufactured aircraft currently in the Debtor's fleet, which is necessary for the Debtor to enhance the operating capabilities of the aircraft. Term Sheet Favorable to Debtors, Financial Advisor Says Gregory S. Ethier, senior vice president of Seabury Group / Seabury Transportation Advisors LLC, Northwest's strategic and financial advisor, asserts that the Term Sheet is favorable to the Debtors, their estates and creditors, in that it will enable Northwest Airlines to: (i) acquire the 787 Aircraft through assumption of the 787 Purchase Agreement and Boeing's affirmation of the Joint Agreement; (ii) free significant amounts of restricted cash through release of the prepetition A/R Loan collateral; (iii) obtain additional postpetition financing under the A/R Loan; (iv) obtain substantial savings for the estate through reduction of the debt outstanding on the 757 Loans; (v) upgrade the capability of several aircraft in its fleet through Boeing's issuance of credits for a portion of the purchase price for such upgrades; and (vi) resolve existing issues and claims between the parties. Mr. Ethier asserts that absent the integrated agreements embodied in the Term Sheet, Northwest would be exposed to a number of undesirable risks: -- Northwest would not be able to perform its obligations under the 787 Aircraft purchase agreement, which would result in the loss of access to needed aircraft deliveries, the exposure to a substantial claim by Boeing, and Boeing's retention of significant pre-delivery payments already paid by the Debtor; -- Boeing would be able to exercise Section 1110 rights to repossess three Boeing model 757-300 aircraft currently in revenue service that at the moment enjoy only a very short-term consensual extension under Section 1110(b); and -- Boeing would demand adequate protection in respect of the other aircraft and collateral that secure the Debtor's obligations under its prepetition loans. Mr. Ethier asserts that the consummation of the transactions contemplated in the Term Sheet is in the best interest of Northwest and its estate and will enhance the prospect of a successful reorganization. Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed $14.4 billion in total assets and $17.9 billion in total debts. (Northwest Airlines Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) NORTHWEST AIRLINES: Seeks Approval for Rolls-Royce Pact ------------------------------------------------------- Northwest Airlines Corp. and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Southern District of New York to: -- implement the Rolls-Royce Agreement pursuant to Sections 107, 363, 364, and 365 of the Bankruptcy Code; -- to obtain postpetition financing, for a portion of the advance payment base price of the 787 aircraft, known as PDP Agreement, as amended by the Rolls-Royce Agreement, pursuant to Section 364; -- assume the Engine Agreements, as amended, pursuant to Section 365(a) of the Bankruptcy Code; and -- file the Rolls-Royce Agreement, related agreements and final financing agreements under seal, to protect confidential information. In contemplation that the Boeing model 787 aircraft it will purchase from Boeing Company and Boeing Capital Loan Corporation will be powered by Rolls-Royce engines, Northwest Airlines, Inc., entered into agreements with Rolls-Royce plc, Rolls-Royce North America, Inc., and Rolls-Royce Total Care Services Limited for: (a) the purchase of five spare engines, support equipment, services and spare parts; (b) the provision by Rolls-Royce of warranties and guarantees with respect to the engines; and (c) the leasing of additional engines while purchased engines are undergoing maintenance. In addition, Northwest Airlines entered into a joint agreement with Rolls-Royce and Boeing, pursuant to which they agreed to facilitate its acquisition of the 787 aircraft. Rolls-Royce also agreed to facilitate: -- Northwest's acquisition of five spare engines pursuant to a Spare Financing Engine Agreement, as well as -- the financing for a portion of the advance payment base price of the 787 aircraft pursuant to a PDP Agreement. As of their bankruptcy filing, Northwest had not obtained any financing under the PDP Agreement. Under the existing PDP Agreement, Rolls-Royce is not required to facilitate any financing while Northwest's bankruptcy proceeding is pending. The Rolls-Royce Agreement Pursuant to an Agreement dated October 19, 2006, Northwest and Rolls-Royce have agreed on terms and conditions upon which: (i) Rolls-Royce will facilitate postpetition financing under the PDP Agreement during Northwest's bankruptcy case, (ii) Northwest will assume each of the Engine Agreements, as amended, and (iii) Rolls-Royce will affirm each of its commitments to facilitate Northwest's acquisition of the 787 aircraft and spare engines. Pursuant to the Rolls-Royce Agreement, the Debtor and Rolls-Royce have agreed to amend the PDP Agreement to provide for facilitation of the financing during Northwest's bankruptcy case. The loans will be secured by first priority security interests in Northwest's rights under the 787 Purchase Agreement with respect to the aircraft financed. The loans will be guaranteed by NWA Corp., and will be secured by all of Northwest's rights under the Purchase Agreement for the aircraft for which the financing is provided, including all credit memoranda and other purchasing concessions. The interest rate under the loans will be favorable for Northwest Airlines, and the loans will be repayable on the delivery date of the relevant aircraft, Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, relates. Certain of the Engine Agreements contemplated that Northwest and Rolls-Royce would agree on certain parameters following entry into the agreements, including parameters in a matrix adjusting the hourly maintenance rate based upon actual engine utilization. Pursuant to amendments to the Engine Agreements, the parties have agreed on the parameters and certain other technical modifications. The Debtor and Rolls-Royce have also agreed upon a limitation of damages should the Debtor breach the assumed Engine Agreements, which may occur if the Debtor fails to successfully reorganize. In such an event, Rolls-Royce's administrative claims will be limited to, and will be satisfied in full by, the retention of all advance payments and other payments made by Northwest from time to time for the purchase of spare engines, including any prepetition payments. All claims and damages incurred under the assumed Engine Agreements as a result of the breach that are not satisfied by the retention of the advance payments, if any, will be treated as prepetition, non-priority unsecured claims in Northwest's bankruptcy case. Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed $14.4 billion in total assets and $17.9 billion in total debts. (Northwest Airlines Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) NORTHWEST AIRLINES: Wants to Implement Settlement Terms Under DIP ----------------------------------------------------------------- Northwest Airlines Corp. and its debtor-affiliates seek authorization from the U.S. Bankruptcy Court for the Southern District of New York to implement settlement terms relating to the final payoff amount due under the $975,000,000 Second Amended and Restated Credit and Guarantee Agreement dated as of April 15, 2005. On Aug. 8, 2006, Judge Gropper entered a final order authorizing the Debtors to obtain up to $1,225,000,000 of DIP financing from Citicorp USA, Inc., and other lenders. The Debtors used the proceeds of the financing to repay the $983,700,000 principal and interest outstanding under the Prepetition Credit Agreement. JPMorgan Chase Bank, N.A., as administrative agent under the Prepetition Credit Agreement, however, demanded an additional $55,000,000 to $60,000,000 on account of a $19,500,000 prepayment fee, default interest, and additional interest due to their alleged inability to elect Eurodollar loans, interest on interest, and other amounts. The Debtors disputed JPMorgan's demands. Pursuant to a Court-approved stipulation, the Debtors deposited $59,792,291 in an interest-bearing segregated account for the benefit of JPMorgan and the Prepetition Lenders to the extent the Disputed Amounts are determined to be payable under the Prepetition Credit Agreement. On Sept. 20, 2006, Northwest Airlines, Inc., and JPMorgan, on behalf of the Prepetition Lenders, signed a letter agreement pursuant to which they agreed in principle on the full, final and complete settlement of the Disputed Amounts. The Debtors agree to pay from the Segregated Account: (i) $23,000,000 to JPMorgan for distribution to the Prepetition Lenders: -- $6,250,000 in prepayment fee, -- $11,500,000 in interest on account of the Eurodollar/ ABR interest rate differential and interest thereon, and -- $5,250,000 in default interest; (ii) Wachtell, Lipton, Rosen & Katz's fees and expenses as counsel to JPMorgan, amounting to $425,000 as of September 30, 2006; (iii) $260,899 as reimbursement to certain Prepetition Lenders for fees and expenses paid to L.E.K. Consulting, Inc., consultant to JPMorgan; and (iv) $18,038 to JPMorgan for its prepetition expenses. The Debtors will also pay interest on the agreed amounts from Aug. 21, 2006, to the payment date, at the interest rate earned on the funds deposited in the Segregated Account. Funds remaining in the Segregated Account after the settlement amounts have been paid in full will be made available to the Debtors. Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP, in New York, tells the Court that the terms and conditions of the Letter Agreement are fair and reasonable, and in the best interests of the Debtors, their estates and their creditors. He notes that the nearly $24,000,000 in settlement payments represent less than half of the amount sought by JPMorgan. Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed $14.4 billion in total assets and $17.9 billion in total debts. (Northwest Airlines Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) OWENS CORNING: Plan Takes Effect, Emerges from Chapter 11 --------------------------------------------------------- Owens Corning's Plan of Reorganization took effect Oct. 31, 2006, marking the company's emergence from Chapter 11. "This is an exciting day for Owens Corning," said Dave Brown, president and chief executive officer. "We have met the commitments that we made to our creditors and asbestos claimants at the start of this process. We are grateful for the loyalty of our customers and suppliers, the support of our communities, and the hard work and dedication of Owens Corning's employees; we couldn't have done it without them." Owens Corning's Plan of Reorganization is the result of an agreement the company reached in May with key creditors groups. Owens Corning's creditors and shareholders, including asbestos, bondholder and trade creditor classes, as well as bank debt holders, overwhelmingly supported this plan. Owens Corning will immediately begin the process of making distributions to its financial creditors and to a 524(g) trust that will forever resolve the company's current and future asbestos liability. The full Plan of Reorganization and related Disclosure Statement are available for free at http://www.ocplan.com/ "We are emerging from Chapter 11 in a strong operational and financial position," said Mr. Brown. "During the past six years, we have continued to grow our businesses around the world and have strengthened our financial performance. We are pleased to be emerging as an investment-grade company." Owens Corning's exit financing will come from a combination of new equity and new debt financing. Related filings about the company's emergence from bankruptcy are available for free at http://researcharchives.com/t/s?143c About Owens Corning Owens Corning (OTC: OWENQ.OB) -- http://www.owenscorning.com/-- manufactures fiberglass insulation, roofing materials, vinyl windows and siding, patio doors, rain gutters and downspouts. Headquartered in Toledo, Ohio, the Company filed for chapter 11 protection on Oct. 5, 2000 (Bankr. Del. Case. No. 00-03837). Norman L. Pernick, Esq., at Saul Ewing LLP, represents the Debtors. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, represents the Official Committee of Asbestos Creditors. James J. McMonagle serves as the Legal Representative for Future Claimants and is represented by Edmund M. Emrich, Esq., at Kaye Scholer LLP. (Owens Corning Bankruptcy News, http://bankrupt.com/newsstand/or 215/945-7000) PAMPELONNE CDO: Moody's Rates $5 Million Class E Notes at Ba1 ------------------------------------------------------------- Moody's Investors Service reported that it has assigned these ratings to Notes issued by Pampelonne CDO I, Ltd.: -- Aaa to $50,000,000 Million Class A-1 Senior Floating Rate Notes Due 2051; -- Aaa to $50,000,000 Million Class A-2 Senior Floating Rate Notes Due 2051; -- Aa2 to $43,750,000 Million Class B Floating Rate Notes Due 2051; -- A2 to $18,750,000 Million Class C Floating Rate Deferrable Notes Due 2051; -- Baa2 to $11,500,000 Million Class D Floating Rate Deferrable Notes Due 2051; -- Ba1 to $5,000,000 Million Class E Floating Rate Deferrable Notes Due 2051 and -- Aaa to Up to $1,062,500,000 Million of Class S Notes; Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Note's governing documents, and are based on the expected loss posed to the Noteholders relative to receiving the present value of such payments. The ratings of the Notes reflect the credit quality of the underlying assets--which consist primarily of total return swaps and credit default swaps of RMBS, CDO and CMBS securities -- as well as the credit enhancement for the Notes inherent in the capital structure and the transaction's legal structure. PAYNE TRUCKING: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Payne Trucking and Loggong, Inc. 188 Riverview Drive Dawsonville, GA 30534 Bankruptcy Case No.: 06-21660 Type of Business: The Debtor. Chapter 11 Petition Date: October 31, 2006 Court: Northern District of Georgia (Gainesville) Debtor's Counsel: Harmon T. Smith, Jr., Esq. Law Office of Harmon T. Smith, Jr. P.O. Box 1276 Gainesville, GA 30503 Tel: (770) 536-1313 Total Assets: $100,000 to $1 Million Total Debts: $1 Million to $100 Million Debtor's 11 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ American Express $122,094 P. O. Box 650448 Dallas, TX 75265-0448 Mack Financial Services $111,369 P.O. Box 26131 Greensboro, NC 27402-6131 Robert J. Collis III $70,000 212 Newport Lane SW Liburn, GA 30047 BB&T $67,828 136 Highway 400 South Dawsonville, GA 30534 United States Treasury $55,215 Cincinnati, OH 45999-0150 Georgia Department of Revenue $10,098 P.O. Box 740387 Atlanta, GA 30374 Dawson County Tax Commissioner $2,386 78 Howard Avenue East, Suite 140 Dawsonville, GA 30534 Powerplan $1,662 P.O. Box 5328 Madison, WI 53705-0328 Department of Public Safety $1,395 P.O. Box 1456 Atlanta, GA 30371 Nextel $477 P.O. Box 95366 Atlanta, GA 30347 Georgia Department of Revenue $180 P.O. Box 105088 Atlanta, GA 30348-5088 PRIDE INTERNATIONAL: Earns $89.3 Million for 2006 Third Quarter --------------------------------------------------------------- Pride International, Inc., reported net earnings for the third quarter 2006 of $89.3 million on revenues of $642.8 million, compared to net earnings of $68.9 million on revenues of $538.8 million for the same period in 2005. For the nine months ended Sept. 30, 2006, the Company reported net earnings of $227.6 million on revenues of $1.8 billion, versus net earnings of $88 million on revenues of $1.4 billion for the corresponding nine-month period in 2005. Results for the third quarter 2006, included gains on asset sales of $2.9 million. The third quarter 2005 included gains on sales of assets of $22 million. The Company's consolidated earnings from operations for the third quarter 2006 were $155.6 million, as compared with $119.8 million in the third quarter 2005 and $125.2 million in the second quarter 2006. The Company's consolidated balance sheet at Sept. 30, 2006, reflected $1.07 billion in total debt and $94.8 million in cash and cash equivalents. During the nine-month period ended Sept. 30, 2006, the Company reduced debt by $180 million and increased cash by $48 million. The Company disclosed that it invested approximately $112 million in capital expenditures in the third quarter 2006 and approximately $279 million for the nine months ended Sept. 30, 2006, as compared to $39 million and $123 million for the same periods in 2005. The year-over-year increase in capital expenditures was primarily due to shipyard projects, which have involved four semisubmersibles and eight jackups during 2006. Louis A. Raspino, president and chief executive officer, commented, "Our third quarter earnings, the highest in the Company's history, were the result of the continuing momentum of increasing dayrates more than offsetting ongoing shipyard projects during the quarter. While the U.S. Gulf of Mexico market is experiencing near-term softness, we expect increased drilling demand, coupled with decreased rig supply, to positively affect dayrates in 2007 in the region. Internationally, we continue to see evidence of an extended period of robust drilling demand, especially among our semisubmersible fleet, where opportunities to contract long term at attractive dayrates are available. During the quarter, we continued to invest in shipyard projects to prepare our rigs for contracts that we believe will provide significant investment returns." Headquartered in Houston, Texas, Pride International Inc., (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services to oil and gas companies worldwide. * * * As reported in the Troubled Company Reporter on Oct. 5, 2006 Moody's Investors Service, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the oilfield service and refining and marketing sectors, confirmed its Ba1 Corporate Family Rating for Pride International Inc. RELIANCE FINANCIAL: Trustee Selling Cash Value Insurance Policies ----------------------------------------------------------------- John Barbee, the Chapter 7 Trustee overseeing the liquidation of The Reliance Financial & Investment Group, Inc., wants to sell all of the estate's right, title and interest in and to 604 life insurance policies. The face amount of the 604 policies is $88.5 million. The policies have a $4.2 million net cash value. Mr. Barbee intends to hold an auction on Nov. 8, 2006, in West Palm Beach, Florida, to solicit the highest and best bids for the policies. Mr. Barbee can be reached at: John P. Barbee P.O. Box 640 Vero Beach, FL 32960 Telephone (772) 563-2125 Fax (772) 563-4847 The Honorable Paul G. Hyman, Jr., presides over The Reliance Financial & Investment Group, Inc.'s chapter 7 liquidation proceeding (Bankr. S.D. Fla. Case No. 02-33249). RESI FINANCE: Moody's Rates Class B9 Notes at Ba3 ------------------------------------------------- Moody's Investors Service assigned ratings ranging from Aaa to Ba3 to securities issued by RESI Finance Limited Partnership 2006-C and RESI Finance DE Corporation 2006-C. The synthetic transaction references to a $13.77 billion portfolio of primarily Wells Fargo originated adjustable-rate (93%) and fixed-rate (7%) prime quality Jumbo and conforming-balance mortgage loans. The ratings are based primarily on the credit quality of the loans and on the loss coverage for each rated tranche. Moody's expects losses on the reference portfolio to range from 0.3% to 0.4%. Wells Fargo Bank, N.A. is the servicer of most of the mortgage loans in the underlying reference portfolio. Moody's has assigned Wells Fargo Bank, N.A. its top servicer quality rating of SQ1 as a primary servicer of prime 1st lien loans. These are the complete rating actions: * Co-Issuer: RESI Finance Limited Partnership 2006-C * Co-Issuer: RESI Finance DE Corporation 2006-C * Real Estate Synthetic Investment Notes, Series 2006-C Class A Risk Band, Assigned Aaa Class B1 Risk Band, Assigned Aa2 Class B2 Risk Band, Assigned Aa3 Class B3 Notes, Assigned A1 Class B4 Notes, Assigned A2 Class B5 Notes, Assigned Baa1 Class B6 Notes, Assigned Baa1 Class B7 Notes, Assigned Baa2 Class B8 Notes, Assigned Ba1 Class B9 Notes, Assigned Ba3 The certificates were sold in privately negotiated transactions without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. RESIDENTIAL ACCREDIT: Fitch Places B Rating on $3MM Private Certs ----------------------------------------------------------------- Fitch rates Residential Accredit Loans, Inc., mortgage pass- through certificates, series 2006-QS14: -- $702,802,861 classes A-1 through A-30, A-P, A-V, R-I and R-II certificates (senior certificates) 'AAA'; -- $27,133,000 class M-1 'AA'; -- $7,913,600 class M-2 'A'; -- $6,029,500 class M-3 'BBB'; In addition, the following privately offered subordinate certificates are rated by Fitch: -- $3,768,300 class B-1 'BB'; -- $3,014,700 class B-2 'B'. The $3,014,802 class B-3 is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 6.75% subordination provided by the 3.60% class M-1, the 1.05% class M- 2, the 0.80% class M-3, the privately offered 0.50% class B-1, the 0.40% privately offered class B-2 and the 0.40% privately offered class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s servicing capabilities (rated 'RMS1' by Fitch) as master servicer. As of the cut-off date (Oct. 1, 2006), the mortgage pool consists of 3,026 conventional, fully amortizing, 30-year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $753,676,763. The mortgage pool has a weighted average original loan-to-value ratio of 74.1%. The pool has a weighted average FICO score of 710, and approximately 40.2% and 13.6% of the mortgage loans possess FICO scores greater than or equal to 720 and less than 660, respectively. Equity refinance loans account for 29.6%, and second homes account for 4.0%. The average loan balance of the loans in the pool is $249,067. The three states that represent the largest portion of the loans in the pool are California (18.5%), Florida (12.8%) and New York (5.3%). All of the mortgage loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers as described in this prospectus supplement and in the prospectus, except in the case of approximately 32.0% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings Financial, LLC, a wholly- owned subsidiary of Residential Funding, and approximately 4.9% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from GMAC Mortgage, LLC, an affiliate of Residential Funding. Approximately 10.3% of the mortgage loans were purchased from HSBC Mortgage Corporation, which is an unaffiliated seller. Except as described in the preceding sentence, no unaffiliated seller sold more than 6.3% of the mortgage loans to Residential Funding. Approximately 63.5% of the mortgage loans are being subserviced by Homecomings, a wholly owned subsidiary of Residential Funding, and approximately 11.3% of the mortgage loans are being subserviced by GMAC LLC, an affiliate of Residential Funding. Approximately 10.3% of the mortgage loans are being subserviced by HSBC Mortgage Corporation (USA), an unaffiliated subservicer. None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans are loans that, under applicable state or local law in effect at the time of origination of the loan are referred to as: 'high-cost' or 'covered' loans, or any other similar designation if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees. The mortgage loans were originated under GMAC-RFC's Expanded Criteria Mortgage Program (Alt-A program). Alt-A program loans are often marked by one or more of the following attributes: a non-owner-occupied property; the absence of income verification; or a loan-to-value ratio or debt service/income ratio that is higher than other guidelines permit. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes. Deutsche Bank Trust Company Americas will serve as trustee. RALI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as two real estate mortgage investment conduit. RESIDENTIAL ACCREDIT: Fitch Places Low-B Ratings on $5MM of Certs ----------------------------------------------------------------- Fitch rates Residential Accredit Loans, Inc., mortgage pass- through certificates, series 2006-QS15: -- $502,493,175 classes A-1 through A-6, A-P, A-V and R certificates (senior certificates) 'AAA'; -- $18,312,400 class M-1 'AA'; -- $5,655,100 class M-2 'A'; -- $4,578,000 class M-3 'BBB'; In addition, these privately offered subordinate certificates are rated by Fitch: -- $2,962,100 class B-1 'BB'; -- $2,423,700 class B-2 'B'. The $2,154,316 class B-3 is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 6.70% subordination provided by the 3.40% class M-1, the 1.05% class M- 2, the 0.85% class M-3, the privately offered 0.55% class B-1, the 0.45% privately offered class B-2, and the 0.40% privately offered class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s servicing capabilities (rated 'RMS1' by Fitch) as master servicer. As of the cut-off date (Oct. 1, 2006), the mortgage pool consists of 2,182 conventional, fully amortizing, 30-year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $538,578,792. The mortgage pool has a weighted average original loan-to-value ratio of 74.8%. The pool has a weighted average FICO score of 708, and approximately 40.1% and 17.8% of the mortgage loans possess FICO scores greater than or equal to 720 and less than 660, respectively. Equity refinance loans account for 31.7%, and second homes account for 7.0%. The average loan balance of the loans in the pool is $246,828. The three states that represent the largest portion of the loans in the pool are California (20.9%), Florida (12.6%) and Texas (6.4%). All of the mortgage loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers as described in this prospectus supplement and in the prospectus, except in the case of approximately 22.4% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings Financial, LLC, a wholly owned subsidiary of Residential Funding, and approximately 1.4% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from GMAC Mortgage, LLC, an affiliate of Residential Funding. Approximately 35.3% of the mortgage loans were purchased from SunTrust Mortgage, Inc., which is an unaffiliated seller. Except as described in the preceding sentence, no unaffiliated seller sold more than 4.6% of the mortgage loans to Residential Funding. Approximately 45.9% of the mortgage loans are being subserviced by Homecomings, a wholly owned subsidiary of Residential Funding, and approximately 6.3% of the mortgage loans are being subserviced by GMAC Mortgage, LLC, an affiliate of Residential Funding. Approximately 35.3% of the mortgage loans are being subserviced by SunTrust Mortgage, Inc., an unaffiliated subservicer. None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans are loans that, under applicable state or local law in effect at the time of origination of the loan are referred to as: 'high-cost' or 'covered' loans, or any other similar designation if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees. The mortgage loans were originated under GMAC-RFC's Expanded Criteria Mortgage Program (Alt-A program). Alt-A program loans are often marked by one or more of these attributes: a non-owner- occupied property; the absence of income verification; or a loan- to-value ratio or debt service/income ratio that is higher than other guidelines permit. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes. Deutsche Bank Trust Company Americas will serve as trustee. RALI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as a real estate mortgage investment conduit. RESIDENTIAL FUNDING: Fitch Rates $1.5MM Class I-B-2 Certs at B -------------------------------------------------------------- Fitch rates Residential Funding Mortgage Securities I, Inc.'s mortgage pass-through certificates series 2006-S10: -- $1,055,760,170 classes I-A-1 through I-A-7, II-A-I, I-A-P, I-A-V, II-A-P, II-A-V, R-I, R-II and R-III certificates (senior certificates) 'AAA'; -- $14,827,500 class I-M-1 'AA'; $2,612,900 class II-M-1 'AA'; -- $4,682,200 class I-M-2 'A'; $614,600 class II-M-2 'A'; -- $3,121,500 class I-M-3 'BBB'; $460,900 class II-M-3 'BBB'. These privately offered subordinate certificates are rated by Fitch: -- $1,560,800 class I-B-1 'BB'; $307,300 class II-B-1 'BB'; -- $1,560,800 class I-B-2 'B'; $307,400 class II-B-2 'B'. In addition, these classes are not rated by Fitch: -- $1,560,877 privately offered class I-B-3; -- $307,395 privately offered class II-B-3. The 'AAA' rating on the Group I senior certificates reflects the 3.50% subordination provided by the 1.90% class I-M-1, the 0.60% class I-M-2, the 0.40% class I-M-3, the privately offered 0.20% class I-B-1, the 0.20% privately offered class I-B-2 and the 0.20% privately offered class I-B-3. The 'AAA' rating on the Group II senior certificates reflects the 1.50% subordination provided by the 0.85% class II-M-1, the 0.20% class II-M-2, the 0.15% class II-M-3, the privately offered 0.10% class II-B-1, the 0.10% privately offered class II-B-2 and the 0.10% privately offered class II-B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s master servicing capabilities (rated 'RMS1' by Fitch). As of the cut-off date, Oct. 1, 2006, the Group I mortgage pool consists of 1,534 conventional, fully amortizing, 30-year fixed- rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $ 780,377,224. The mortgage pool has a weighted average original loan-to-value ratio of 70.6%. The weighted-average FICO score of the loans in the pool is 740, and approximately 67.6% of the mortgage loans possess FICO scores greater than or equal to 720 and 5.3% of the mortgage loans posses FICO scores less than 660. Loans originated under a reduced loan documentation program account for approximately 30.4% of the pool, equity refinance loans account for 32.0%, and second homes account for 6.0%. The average loan balance of the loans in the pool is approximately $ 508,720. The three states that represent the largest portion of the loans in the pool are California (39.5%), Virginia (6.1%), and Florida (5.9%). The Group II mortgage pool consists of 541 conventional, fully amortizing, 15-year fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $ 307,307,119. The mortgage pool has a weighted average original loan-to-value ratio of 59.5%. The weighted-average FICO score of the loans in the pool is 749, and approximately 75.6% of the mortgage loans possess FICO scores greater than or equal to 720 and 2.7% of the mortgage loans posses FICO scores less than 660. Loans originated under a reduced loan documentation program account for approximately 25.1% of the pool, equity refinance loans account for 35.8%, and second homes account for 10.4%. The average loan balance of the loans in the pool is approximately $568,035. The three states that represent the largest portion of the loans in the pool are California (19.7%), Florida (9.7%), and Maryland (6.4%). None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans in the pool are mortgage loans that are referred to as 'high-cost' or 'covered' loans or any other similar designation under applicable state or local law in effect at the time of origination of such loan if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees. All of the group I loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers as described in this prospectus supplement and in the accompanying prospectus, except in the case of approximately 21.4% and 12.3% of the group I loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings and GMAC Mortgage, respectively. Approximately 16.0% and 12.3% of the group I loans were purchased by Residential Funding from SunTrust Mortgage, Inc. and Sierra Pacific Mortgage Co. Inc., respectively, each an unaffiliated seller. Except as described in the preceding sentence, no unaffiliated seller sold more than approximately 9.8% of the group I loans to Residential Funding. Approximately 59.6% and 18.5% of the group I loans are being subserviced by Homecomings and GMAC Mortgage, LLC, respectively, each an affiliate of Residential Funding. Approximately 16.0% of the group I loans are being subserviced by SunTrust Mortgage, Inc. an unaffiliated entity of Residential Funding. All of the group II loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers as described in this prospectus supplement and in the accompanying prospectus, except in the case of approximately 12.4% and 15.2% of the group II loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings and GMAC Mortgage, respectively. Approximately 20.8% of the group II loans were purchased by Residential Funding from National City Mortgage, an unaffiliated seller. Except as described in the preceding sentence, no unaffiliated seller sold more than approximately 8.8% of the group II loans to Residential Funding. Approximately 36.5% and 15.7% of the group II loans are being subserviced by Homecomings and GMAC Mortgage, LLC, respectively, each an affiliate of Residential Funding. Approximately 20.8% of the group II loans are being subserviced by National City Mortgage an unaffiliated entity of Residential Funding. U.S. Bank National Association will serve as trustee. RFMSI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as three real estate mortgage investment conduit. RESIX FINANCE: Moody's Rates Class B9 Notes at Ba3 -------------------------------------------------- Moody's Investors Service assigned ratings to the Class B7, Class B8 and Class B9 Notes issued by RESIX Finance Limited. The credit-linked notes are structured to synthetically replicate the cash flows of the Class B7, Class B8 and Class B9 issued by the RESI Finance Limited Partnership 2006-C transaction, a synthetic residential mortgage securitization. These are the rating actions: * RESIX Finance Limited * RESIX Finance Limited Credit-Linked Notes, Series 2006-C Cl. B7 Notes, Assigned Baa2 Cl. B8 Notes, Assigned Ba1 Cl. B9 Notes, Assigned Ba3 The certificates were sold in privately negotiated transactions without registration under the Securities Act of 1933 under circumstances reasonably designed to preclude a distribution thereof in violation of the Act. The issuance has been designed to permit resale under Rule 144A. RIVERCHASE COUNTRY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Riverchase Country Club 2000 Club Road Birmingham, AL 35244 Bankruptcy Case No.: 06-04310 Type of Business: The Debtor operates an 18-hole golf course. Chapter 11 Petition Date: October 30, 2006 Court: Northern District of Alabama (Brimingham) Judge: Benjamin G. Cohen Debtor's Counsel: Steven D. Altmann, Esq. Najjar Denaburg, P.C. 2125 Morris Avenue Birmingham, AL 35203 Tel: (205) 250-8466 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Wachovia Bank, N.A. $3,197,617 Metro Lending Secured: 420 North 20th Street $402,383 10th Floor Birmingham, AL 35203 Sysco Central Alabama $11,300 P.O. Box 1750 Calera, AL 35040 Alabama Power Company $11,145 P.O. Box 242 Birmingham, AL 35292 U.S. Foodservice $5,169 P.O. Box 117 Montgormery, AL 36101 Bryan McMurray $4,334 5041 Emerald Court Birmingham, AL 35244 David Naefe $3,700 Daniel Doleys $3,700 J.W. Palmer $3,700 Frank Buck $3,700 Lester Burbic $3,700 Mike O'Brien $3,700 Marvin Norvell, Jr. $3,700 H. Lavon Nichols $3,700 Fred Nelson $3,700 Charles Melton $3,700 Marc Neas $3,700 John Pegues $3,700 T.L. Carter $3,700 Ralph Cash $3,700 Pat Lynch $3,700 S-TRAN HOLDINGS: Wants Plan-Filing Period Extended to Dec. 4 ------------------------------------------------------------ S-Tran Holdings, Inc., and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend, until December 4, 2006, the time within which they have the exclusive right to file a reorganization plan. They further ask the Court to extend, until February 5, 2007, their exclusive period to solicit acceptances of that plan. As reported on the Troubled Company Reporter on Mar. 15, 2006, The Debtors tell the Court that they are devoting a significant amount of time addressing: * numerous freight claims filed against them, * cash collateral usage, and * insurance collateral issues. Furthermore, the Debtors are analyzing potential asset recoveries to maximize the value of their estates for the benefit of all creditors. The Debtors argue they should be given a reasonable opportunity to negotiate an acceptable plan with creditors and to prepare adequate financial and non-financial information concerning the ramifications of any proposed plan for disclosure to creditors. Headquartered in Cookeville, Tennessee, S-Tran Holdings, Inc., provides common carrier services and specialized in less-than- truckload shipments and also supplies overnight and second day service to shippers in 11 states in the Southeast and Midwestern United States. The Company and its debtor-affiliates filed for chapter 11 protection on May 13, 2005 (Bankr. D. Del. Case No. 05-11391). Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl, Young, Jones & Weintraub P.C. represents the Debtors in their restructuring efforts. Donald A. Workman, Esq., at Foley & Lardner LLP represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed total assets of $22,508,000 and total debts of $30,891,000. SAINT VINCENTS: Hires Pride Capital as Liquidator ------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has authorized Saint Vincents Catholic Medical Centers of New York and its debtor-affiliates to employ Pride Capital Group, LLC, doing business as Great American Group, LLC, as their liquidator, nunc pro tunc to Sept. 15, 2006. As reported in the Troubled Company Reporter on Oct. 16, 2006, the Debtors seek to privately sell certain tangible personal property, free and clear of all liens, claims, encumbrances and other interests. As the Debtors' sole and exclusive liquidator, Great American will develop and implement a strategy for the divestiture of the Surplus Assets for the highest and best price. In addition, Great American will: (a) provide a full time supervisor or supervisors to supervise and conduct the sale; (b) oversee the liquidation and disposal of the Surplus Assets; (c) determine and implement appropriate point-of-purchase, point-of-sale, and external advertising to effectively sell the Surplus Assets for the highest available price; (d) determine pricing and discounting of the Surplus Assets; (e) provide other related services deemed necessary by the parties under the circumstances leading to the sale; and (f) provide the Debtors with reporting and reconciliation of all accounting information in a form reasonably acceptable to the Debtors. Pursuant to the terms of a liquidator services agreement between the parties, the Debtors will: -- pay Great American a commission equal to 5% of the proceeds realized from the sale of any of the Surplus Assets; -- allow Great American to charge purchasers of the Surplus Assets a fee of up to 10% for on-site bidders and up to 13% for internet bidders; and -- entitle Great American, with respect to any sale of Surplus Assets, to reimbursement of the actual, direct and commercially reasonable operating expenses incurred in connection with that sale, subject to a $34,000 cap. The Debtors also propose that in lieu of Great American's filing of applications for compensation, the Debtors will file a summary of proceeds and buyer's premiums realized from the Sale, in full satisfaction of all application requirements. The Debtors have also agreed to indemnify Great American against certain losses arising out of their engagement. 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. 37 Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Cha. 11 Case Cues Moody's to Junk Sr. Debt Rating ----------------------------------------------------------------- Moody's downgraded ratings of Sea Containers Ltd., including the company's senior unsecured rating to Ca from Caa3. Moody's will withdraw all ratings because Sea Containers and two of its subsidiaries filed to reorganize under Chapter 11 of the U.S. Bankruptcy Code on October 15, 2006. The downgrades reflect Moody's belief that holders of the unsecured notes are likely to recognize a meaningful loss upon the resolution of the bankruptcy proceedings. Holders of Sea Containers unsecured notes of $386 million, and the company's pension trusts are expected to be the largest creditors. Sea Containers is a holding company and its operating subsidiaries were not included in the bankruptcy filing. The senior unsecured notes, however, do not benefit from upstream guarantees from the operating subsidiaries. In Moody's view, the value of Sea Containers 50% interest in GE SeaCo will be a primary contributor of value in any debt reorganization plan, although there is considerable uncertainty in value. Sea Containers has not filed financial statements for some time. At December 31, 2005, GE SeaCo assets totaled $1.3 billion, including $1.1 billion of marine containers, with total debt of $939 million including advances due to the parent companies. There have been no recent sales of large marine container fleets; however, applying the current market multiples for TAL International Group, Inc., to GE SeaCo's 2005 financial statements, implies a possible value for Sea Containers 50% interest in the $100 million to $200 million range. Moody's notes that changes in the GE SeaCo container fleet or lease book subsequent to December 31, 2005 could affect the value. Separately, however, General Electric Capital Corporation, the 50% partner in GE SeaCo, notified Sea Containers that GECC will exercise its right to purchase Sea Containers' 50% equity interest at a fair market value not disclosed. This notice was made prior to Sea Containers' bankruptcy filing. GECC believes a change of control, as defined by the GE SeaCo Member's Agreement, occurred upon the resignation of Sea Containers former CEO. According to Sea Containers, it will contest GECC's interpretation of the Members Agreement. In addition to the senior unsecured notes, Sea Containers is liable for certain debt obligations of its operating subsidiaries, including approximately $60 million of term loans secured by first lien mortgages on ten vessels. Some of these vessels are trading currently while others are laid up. While the collateral coverage on a loan-by-loan basis is not clear, Moody's does not anticipate significant residual claims. While adequate to cover the secured debt, Moody's does not expect these vessels nor the residual value of the containers pledged to the recently-amended Sea Containers' container securitization facility to provide significant additional recovery value relative to the liabilities of Sea Containers. The remaining unencumbered containers owned by Sea Containers might also contribute if not used as a source of liquidity during the bankruptcy proceedings. Debt list: * Sea Containers, Ltd * Ratings downgraded and to be withdrawn: -- Corporate Family, to Ca from Caa2 -- Senior Unsecured, to Ca from Caa3 -- Issuer Rating, to Ca from Caa3 Sea Containers Ltd. headquartered in Hamilton Bermuda, is the franchisee-operator of the Great North Eastern Railroad in the U.K., a lessor of cargo containers to the shipping industry, and a 50% co-owner of GE SeaCo, a container leasing joint venture between Sea Containers and General Electric Capital Corporation. SHAW COMMS: Earns $210.4 Million in Fourth Quarter Ended Aug. 31 ---------------------------------------------------------------- Shaw Communications, Inc., reported net income of $210.4 million for the fourth quarter ended Aug. 31, 2006, compared to net income of $70 million for the same quarter last year. Net income for the year was $458.3 million up from $153.2 million last year. The Company also reported that Digital Phone lines increased in the quarter by 43,744 for a total of 212,707 as at Aug. 31, 2006. Internet and Digital subscribers increased by 25,907 and 9,630, respectively. Internet customers now exceed 1.3 million and the Company's Internet penetration has increased to almost 60% of Basic customers. Basic cable and DTH added 2,766 and 3,221 subscribers respectively in the final quarter. Jim Shaw, chief executive officer, said, "We are pleased with the customer response to our Digital Phone product. We have added over 210,000 digital phone lines in just 18 months since our initial launch of the product. This confirms that people appreciate having a real choice and that, given a chance, new entrants like Shaw can open up the market to future competition that is real and sustainable," The Company disclosed that consolidated service revenue were $631.9 million and $2.5 billion for the three and twelve month periods, respectively, increased 12.2% and 11.3% over the prior year. Free cash flow for the quarter and year was $54.9 million and $265.4 million, respectively, compared to $81.7 million and $277.3 million for the same periods last year. Free cash flow was marginally lower in the current year. The Company's Cable division service revenue increased 14.2% for the quarter to $467.3 million and 13.2% on an annual basis to $1.81 billion. Service operating income before amortization for the three and twelve month periods increased 8% and 7.5% to $216.8 million and $857.5 million, respectively. Its Satellite division service revenue increased 7% for the quarter to $164.6 million and 6.4% on an annual basis to $650.7 million. Service operating income before amortization for the quarter increased by 16.5% to $58.3 million and by 19.5% to $220.5 million on an annual basis. 2007 Guidance The Company also disclosed its preliminary view is for service operating income before amortization to range from $1.17 billion to $1.20 billion, capital investment for fiscal 2007 to range from $600 million to $630 million and, accordingly, the Company expects free cash flow to range from $300 million to $320 million. Mr. Shaw continued, "With the Company's strong performance over the last year and prospects for continued growth in fiscal 2007, our Board approved a 67% increase in the annual equivalent dividend rate from $0.60 per Class B Non-Voting Share to $1.00 per Class B Non-Voting Share. At the current share price of approximately $34.00, this represents a yield of approximately 3%, which makes us a leader among North American cable companies. Our shareholders now benefit from both a higher monthly return of capital in addition to the potential for further share price appreciation as we continue to grow. We plan to use the balance of our free cash flow on an annual basis in fiscal 2007 to repurchase shares or to reduce debt. We previously indicated that at least 25% of free cash flow would be used for debt reduction, but in light of the growth in service operating income before amortization, we expect, even in the absence of debt reduction, that our credit metrics will continue to improve. Based on achieving the mid-point of our fiscal 2007 guidance for service operating income before amortization and assuming that debt remains constant, our ratio of net debt to service operating income before amortization will decline from 3.2 times at the end of fiscal 2006 to 2.9 times at the end of fiscal 2007. This is consistent with our focus to ensure that credit metrics continue to improve over time." Share Repurchase The Company further disclosed that during the quarter Mr. Shaw repurchased 2,759,900 of its Class B Non-Voting Shares for cancellation, pursuant to the normal course issuer bid for $88.7 million, $32.13 per share, bringing the annual total to $146.6 million, $28.64 per share, on the repurchase of 5,119,900 shares. For the year, share repurchases represent about 2.5% of the Class B Non-Voting Shares outstanding at Aug. 31, 2005. Shaw Communications Inc. (TSX: SJR.B) (NYSE: SJR) -- http://www.shaw.ca/-- is a diversified Canadian communications company whose core business is providing broadband cable television, Internet, Digital Phone, telecommunications services (through Big Pipe Inc.) and satellite direct-to-home services (through Star Choice Communications Inc.) to approximately 3.0 million customers. Shaw is a member of the S&P/TSX 60 index. * * * As reported in the Troubled Company Reporter on April 27, 2006, Moody's Investors Service affirms Shaw Communications Inc.'s ratings and assigned a Ba2 rating on the Company's CDN$300 million senior unsecured debenture. Moody's said the outlook for all ratings is stable. As reported in the Troubled Company Reporter on April 27, 2006, Standard & Poor's Ratings Services assigned its 'BB+' debt rating to Shaw Communications Inc.'s CDN$300 million senior unsecured notes due 2016. At the same time, S&P affirmed the Company's 'BB+' long-term corporate credit rating. S&P said the outlook is stable. SKYEPHARMA PLC: UBS AG No Longer Holds Notifiable Interest ---------------------------------------------------------- SkyePharma PLC, in a regulatory filing with the Securities and Exchange Commission on Oct. 27, 2006, disclosed that UBS AG and its subsidiaries, as a result of a reclassification of their shareholding on becoming a market maker in the Ordinary Shares of the Company, no longer hold a notifiable interest in the Company's Ordinary Shares. Headquartered in London, SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) -- http://www.skyepharma.com/-- develops pharmaceutical products benefiting from world-leading drug delivery technologies that provide easier-to-use and more effective drug formulations. There are now twelve approved products incorporating SkyePharma's technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilisation capabilities. Going Concern Doubt As reported in the Troubled Company Reporter on Aug. 1, 2006, PricewaterhouseCoopers LLP in London raised substantial doubt about Skyepharma PLC's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the uncertainty as to when Skyepharma's certain strategic initiatives may be concluded and their effect on the company's working capital requirements. SOUTH CENTRAL: S&P Cuts Rating on $455K Sec. 8 Bonds to B from BB ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on South Central Multi-County Housing and Redevelopment Authority (Sibley Estates East and West projects), Minn.'s $455,000 Section 8 assisted multifamily housing revenue bonds series 1994 to 'B' from 'BB'. The outlook is stable. The downgrade reflects debt service coverage of 0.80x for fiscal 2005; an increase in expenses, leading to deterioration of the expense ratio; and contract rents above fair market rents, limiting the projects' ability to receive rental increases. The audited financial results for the year ended Dec. 31, 2005, indicate that debt service coverage has improved slightly to 0.80x from 0.77x in 2004, but it is expected to decline in fiscal 2006 based on nine-month, year-to-date numbers. The projects' debt service coverage has rapidly declined over the past several years from a high of 1.39x in 1999. This was because the projects have not received any rental increases since 1996, have had lower returns on investments that are held in a money market fund, and have had increasing expenses. The owner has been applying for rental increases using the cost basis method over the past few years. HUD has cited the projects' surplus fund as the reason for the rejections. STRUCTURED ASSET: Fitch Places BB Rating on $11.9MM Class B2 Certs ------------------------------------------------------------------ Fitch rates Structured Asset Securities Corp. $1.30 billion mortgage pass-through certificates, series 2006-BC3: -- $1.064 billion classes A1 - A4 'AAA'; -- $51.5 million class M1 'AA+'; -- $40.3 million class M2 'AA'; -- $25.7 million class M3 'AA-'; -- $23.1 million class M4 'A+'; -- $21.1 million class M5 'A'; -- $15.8 million class M6 'A-'; -- $14.5 million class M7 'BBB+'; -- $9.2 million class M8 'BBB'; -- $14.5 million class M9 'BBB-'; -- $12.5 million class B1 'BB+' (144A); -- $11.9 million class B2 'BB' (144A). The 'AAA' rating on the senior certificates reflects the 19.40% total credit enhancement provided by the 3.90% class M1, 3.05% class M2, 1.95% class M3, 1.75% class M4, 1.60% class M5, 1.20% class M6, 1.10% class M7, 0.70% class M8, 1.10% class M9, the privately offered 0.95% class B1, the privately offered 0.90% class B2, as well as the initial 1.20% overcollateralization. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Wells Fargo Bank, N.A., which is rated 'RMS1' by Fitch. The aggregate trust consists of 6,910 fixed- and adjustable-rate, conventional, first and second lien residential mortgage loans, all of which have original terms to stated maturity of 30 years. As of the cut-off date (Oct. 1, 2006), the mortgages have an aggregate principal balance of approximately $1,320,154,968. 28.23% of the mortgage pool is fixed rate and 71.77% is adjustable. The mortgage pool has a weighted average original loan-to-value ratio of 81.91%, a weighted average coupon of 8.212%, and a weighted average remaining term to maturity of 360. The mortgage loans were originated by various originators or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines. The largest percentages of originations (as a percentage of the cut-off date balance) were those made by Fieldstone Mortgage Company (30.93% of the mortgage pool), Countrywide Home Loans, Inc. (27.28% of the mortgage pool), BNC Mortgage, Inc. (24.70% of the mortgage pool), and Lehman Brothers Bank, FSB (15.32% of the mortgage pool). SASCO, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits. THOMPSON & WALTERS: Section 341(a) Meeting Scheduled on Nov. 8 -------------------------------------------------------------- The U.S. Trustee for Region 18 will convene a meeting of Thompson & Walters Nursery LLC's creditors on Nov. 8, 2006, at 1:30 p.m., 620 SW Main Street Room 223 in the US Trustee's Office, in Portland, Oregon. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible 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. Headquartered in Cornelius, Oregon, Thompson & Walters Nursery LLC wholesales and retails nursery stock. The Company filed for chapter 11 protection on Oct. 5, 2006 (Bnkr. D. Or. Case No. 06-33096). Jeanette L. Thomas, Esq., at Perkins Cole LLP represents the Debtor. When the Debtor filed for protection from its creditors, it estimated assets of 24,538,461 and debts of $27,187,244. TRUMP ENT: Finishes Due Diligence Relating to Diamondhead Property ------------------------------------------------------------------ Trump Entertainment Resorts Inc. has notified Diamondhead Casino Corporation that it has completed necessary due diligence activities relating to the letter of intent signed regarding DCC's Diamondhead, Mississippi, property. Trump expects to move forward with negotiations relating to a joint venture agreement to develop, build, and operate a destination casino resort on the Diamondhead property. As reported, Trump and DCC signed on June 8, 2006, a Letter of Intent with respect to a minimum of 40 acres of land at DCC's Diamondhead property. The parties agreed Sept. 8, 2006, to extend the Letter of Intent through Oct. 23, 2006, to permit Trump to complete its due diligence. The joint venture, if consummated, would cover a minimum of 40 acres within a 404-acre tract of land owned by Mississippi Gaming Corporation, a wholly owned subsidiary of DCC. The Diamondhead tract fronts Interstate 10 for approximately two miles and the Bay of St. Louis for approximately two miles and is located in Hancock County, Mississippi. The property is zoned as a Special Use District-Waterfront Gaming District by Hancock County. Atlantic City, New Jersey-based Trump Hotels & Casino Resorts, Inc., nka Trump Entertainment Resorts, Inc. (Nasdaq: TRMP) -- http://www.trumpcasinos.com/-- through its subsidiaries, owns and operates four properties and manages one property under the Trump brand name. The Company and its debtor-affiliates filed for chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No. 04-46898 through 04-46925). The Court confirmed the Debtors' Second Amended Plan of Reorganization on Apr. 5, 2005, and the plan took effect on May 20, 2005. * * * As reported in the Troubled Company Reporter on Oct. 18, 2006, Moody's Investors Service confirmed Trump Entertainment Resorts Holdings L.P.'s B3 Corporate Family Rating in connection with Moody's implementation of Probability-of-Default and Loss-Given- Default rating methodology. US LAND: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: United States Land and Cattle Company, Inc. 4772 Frontier Way #400 Stockton, CA 95215 Bankruptcy Case No.: 06-24478 Chapter 11 Petition Date: October 31, 2006 Court: Eastern District of California (Sacramento) Judge: Thomas Holman Debtor's Counsel: Gustavo M. Rios, Esq. 4772 Frontier Way #400 Stockton, CA 95215 Tel: (209) 466-4433 Total Assets: $1 Million to $100 Million Total Debts: $1 Million to $100 Million The Debtor does not have unsecured creditors. VALASSIS COMMUNICATIONS: Moody's Chips Baa3 Rating on Senior Bonds ------------------------------------------------------------------ Moody's Investors Service downgraded Valassis Communications, Inc.'s senior unsecured note ratings to Ba1 from Baa3. Moody's also assigned a Ba1 Corporate Family Rating, Ba1 Probability of Default Rating, and LGD4 loss given default assessments to Valassis' debt securities. The ratings remain on review for downgrade. Downgrades: * Issuer: Valassis Communications, Inc. -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3 Assignments: * Issuer: Valassis Communications, Inc. -- Corporate Family Rating, Assigned Ba1 -- Probability of Default Rating, Assigned Ba1 -- Senior Unsecured Regular Bond/Debenture loss given default assessment, Assigned LGD4-56 The downgrade reflects Moody's belief that deterioration in the company's earnings due to significant downward pressure on free- standing insert pricing into 2007 and customer consolidation in the neighborhood targeting segment, and the company's focus on shareholder value-enhancement initiatives, as demonstrated by the pursuit of the leveraging ADVO acquisition, will lead to a more aggressive leverage profile. In Moody's opinion, Valassis' modest size and the competitive profile of its business dictate a commitment to a very conservative capital structure to maintain an investment grade rating. The company's current leverage, even without the ADVO transaction, no longer supports the Baa3 rating. Further, there can be no assurance that Valassis will not seek to increase its risk profile to boost returns to shareholders if the ADVO transaction is terminated. The ratings remain on review for downgrade pending the outcome of the litigation related to the ADVO acquisition. Consummation of the ADVO acquisition at the $37 per share price set forth in the July 5th, 2006 merger agreement would likely result in a multi- notch downgrade of the CFR. Valassis Communications, Inc. headquartered in Livonia, Michigan, offers a wide range of promotional and advertising products including newspaper advertising and inserts, sampling, direct mail, targeted marketing, coupon clearing and consulting and analytic services. VARIG S.A.: Preliminary Injunction Continued to November 29 ----------------------------------------------------------- Judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York continues the preliminary injunction imposed in VARIG S.A and its debtor-affiliates' Section 304 cases through and including Nov. 29, 2006. The Court will hold a hearing on Nov. 28, 2006, at 10:00 a.m., to consider whether to extend the Preliminary Injunction or, if appropriate, convert it into a Permanent Injunction. Previously filed objections to the extension of the Preliminary Injunction or entry of a Permanent Injunction will be carried over to the November 28 hearing. Any other objection must be filed with the Court by November 23, 2006. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. (VARIG Bankruptcy News, Issue No. 33; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) VARIG S.A.: Volo May Invest $173 Million to Expand Fleet -------------------------------------------------------- Volo do Brasil plans to spend $140,000,000 to lease seven new 757-200 Boeing planes, and $33,000,000 to purchase 22 medium-size Cesna planes to expand VARIG S.A.'s fleet, MarketWatch reports citing O Estado de S. Paulo newspaper. According to the report, VARIG has to secure final regulatory approval of the recent sale of its operating assets before it can make any purchases. MarketWatch notes that the National Civil Aviation Authority already authorized VarigLog to operate VARIG. ANAC, however, still has to approve the sale itself. Volo acquired VARIG's operating assets at an auction in July 2006. Volo has pledged to infuse more than $500,000,000 to allow the airline to pay debts and return to profitability. Headquartered in Rio de Janeiro, Brazil, VARIG S.A. is Brazil's largest air carrier and the largest air carrier in Latin America. VARIG's principal business is the transportation of passengers and cargo by air on domestic routes within Brazil and on international routes between Brazil and North and South America, Europe and Asia. VARIG carries approximately 13 million passengers annually and employs approximately 11,456 full-time employees, of which approximately 133 are employed in the United States. The Company, along with two affiliates, filed for a judicial reorganization proceeding under the New Bankruptcy and Restructuring Law of Brazil on June 17, 2005, due to a competitive landscape, high fuel costs, cash flow deficit, and high operating leverage. The Debtors may be the first case under the new law, which took effect on June 9, 2005. Similar to a chapter 11 debtor-in-possession under the U.S. Bankruptcy Code, the Debtors remain in possession and control of their estate pending the Judicial Reorganization. Sergio Bermudes, Esq., at Escritorio de Advocacia Sergio Bermudes, represents the carrier in Brazil. Each of the Debtors' Boards of Directors authorized Vicente Cervo as foreign representative. In this capacity, Mr. Cervo filed a Sec. 304 petition on June 17, 2005 (Bankr. S.D.N.Y. Case Nos. 05-14400 and 05-14402). Rick B. Antonoff, Esq., at Pillsbury Winthrop Shaw Pittman LLP represents Mr. Cervo in the United States. As of March 31, 2005, the Debtors reported BRL2,979,309,000 in total assets and BRL9,474,930,000 in total debts. (VARIG Bankruptcy News, Issue No. 33; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) WELLS FARGO: Fitch Puts B Rating on $1.5MM Class B-5 Certificates ----------------------------------------------------------------- Wells Fargo mortgage pass-through certificates, series 2006-16, are rated by Fitch Ratings: -- $1,468,733,664 classes A-1 to A-19, A-PO, and A-R 'AAA' (senior certificates); -- $26,335,000 class B-1 'AA'; -- $3,009,000 class B-2 'A'; -- $2,258,000 class B-3 'BBB'; -- $1,505,000 class B-4 'BB'; and -- $1,504,000 class B-5 'B'. The 'AAA' ratings on the senior certificates reflect the 2.40% subordination provided by the 1.75% class B-1, the 0.20% class B- 2, the 0.15% class B-3, the 0.10% privately offered class B-4, the 0.10% privately offered class B-5, and the 0.10% privately offered class B-6. The ratings on the class B-1, B-2, B-3, B-4, and B-5 certificates are based on their respective subordination. Class B-6 is not rated by Fitch. Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures, and the primary servicing capabilities of Wells Fargo Bank, N.A.; rated 'RPS1' by Fitch). The transaction consists of one group of 3,171 fully amortizing, fixed interest rate, first lien mortgage loans, with an original weighted average term to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $1,504,850,539 as of Oct. 1, 2006 (the cut-off date), and the average principal balance is $474,567. The weighted average original loan-to-value ratio of the loan pool is approximately 73.74%; 6.26% of the loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 5.711%, and the weighted average FICO score is 757. All of the mortgage loans were made in connection with the relocation of employees of various corporate employers. The states that represent the largest geographic concentration are California (19.62%), New Jersey (8.96%), Connecticut (5.38%), Virginia (5.27%), and Pennsylvania (5.03%). All other states represent less than 5% of the outstanding balance of the pool. None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. All of the mortgage loans were generally originated in conformity with underwriting standards of WFB. WFB sold the loans to Wells Fargo Asset Securities Corporation, a special purpose corporation, who deposited the loans into the trust. The trust issued the certificates in exchange for the mortgage loans. WFB will act as servicer and custodian, and HSBC Bank USA, National Association will act as trustee. Elections will be made to treat the trust as two separate real estate mortgage investment conduit for federal income tax purposes. WELLS FARGO: Fitch Rates $4.8 Million Class B-5 Certificates at B ----------------------------------------------------------------- Wells Fargo mortgage pass-through certificates, series 2006-15, are rated by Fitch Ratings: -- $3,151,061,146 classes A-1, A-PO, and A-R 'AAA' (senior certificates); -- $55,253,000 class B-1 'AA'; -- $17,876,000 class B-2 'A'; -- $9,750,000 class B-3 'BBB'; -- $6,501,000 class B-4 'BB'; and -- $4,875,000 class B-5 'B'. The 'AAA' ratings on the senior certificates reflect the 3.05% subordination provided by the 1.70% class B-1, the 0.55% class B- 2, the 0.30% class B-3, the 0.20% privately offered class B-4, the 0.15% privately offered class B-5, and the 0.15% privately offered class B-6. The ratings on the class B-1, B-2, B-3, B-4, and B-5 certificates are based on their respective subordination. Class B-6 is not rated by Fitch. Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures, and the primary servicing capabilities of Wells Fargo Bank, N.A.; rated 'RPS1' by Fitch). The transaction consists of one group of 5,771 fully amortizing, fixed interest rate, first lien mortgage loans, with an original weighted average term to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $3,250,192,094 as of Oct. 1, 2006 (the cut-off date), and the average principal balance is $563,194. The weighted average original loan-to-value ratio of the loan pool is approximately 71.90%; 1.42% of the loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 6.653%, and the weighted average FICO score is 748. Cash-outs and rate/term refinance represent 17.30% and 13.18%, respectively. The states that represent the largest geographic concentration are California (27.57%), Virginia (8.43%), New York (6.99%), and Maryland (6.75%). All other states represent less than 5% of the outstanding balance of the pool. None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. All of the mortgage loans were generally originated in conformity with underwriting standards of WFB. WFB sold the loans to Wells Fargo Asset Securities Corporation, a special purpose corporation, who deposited the loans into the trust. The trust issued the certificates in exchange for the mortgage loans. WFB will act as servicer and custodian, and HSBC Bank USA, National Association will act as trustee. Elections will be made to treat the trust as a real estate mortgage investment conduit for federal income tax purposes. WERNER LADDER: Creditors Have Until Dec. 12 to File Claims ---------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware set Dec. 12, 2006, at 4:00 p.m. (Pacific Time), as the deadline for all creditors, including governmental units, owed money by Werner Holding Co. (DE) Inc. aka Werner Ladder Company and its debtor- affiliates on account of claims arising before June 12, 2006, to file their proofs of claim. Persons and entities who are required to file proofs of claim on or before the Bar Date are: (a) those whose prepetition claims are not listed in the Schedules of Liabilities or are listed as disputed, contingent, or unliquidated and who desire to participate in the Debtors' Chapter 11 cases; and (b) those who believe that their prepetition claims are improperly classified in the Schedules or are listed in an incorrect amount and who desire to have their claims allowed in a classification or amount other than that identified in the Schedules. Each proof of claim filed must: -- be written in the English language; -- be denominated in lawful currency of the United States; -- attach copies of supporting documentation. All proofs of claim must be originally executed and actually received on or before the Bar Date by Kurtzman Carson Consultants LLC, the Court-approved claims and noticing agent, at this address: Werner Claims Processing c/o Kurtzman Carson Consultants LLC 12910 Culver Boulevard, Suite I Los Angeles, CA 90066 Proofs of claim must either be mailed or delivered by messenger or overnight courier. Proofs of claim sent by facsimile, telecopy, or e-mail will not be accepted. Any holder of a claim who is required, but fails, to file a proof of claim on or before the Bar Date will be forever barred from asserting that claim against the Debtors, and the Debtors and their property will be forever discharged from any indebtedness with respect to that claim. Moreover, that holder will not be permitted to vote to accept or reject any Chapter 11 plan or participate in any distribution in the Debtors' Chapter 11 cases on account of that claim. The Debtors will serve on all known entities holding potential prepetition claims: (a) a notice of the Bar Date, (b) a proof of claim form, and (c) the Bar Date Order. The Debtors will also mail a Bar Date Package to parties-in- interest, including: -- the U.S. Trustee, -- counsel to the Committee, -- creditors listed in the Schedules, -- parties to executory contracts and unexpired leases, -- equity security holders, -- taxing authorities, -- all indenture trustees, -- District Director of the IRS for Delaware, and -- the Securities and Exchange Commission. The Debtors will also publish the Bar Date Notice once in each of the national editions of The Wall Street Journal and USA Today, no later than Nov. 17, 2006. The Debtors note that establishing December 12 as the Bar Date will provide potential claimants with enough time after the mailing of the Bar Date Notice Package and the printing of the Publication Notice to review the Schedules, compare the information in the Schedules with their own books and records, and, if necessary, prepare and file proofs of claim. About Werner Ladder Headquartered in Greenville, Pennsylvania, Werner Co. -- http://www.wernerladder.com/-- manufactures and distributes ladders, climbing equipment and ladder accessories. The company and three of its affiliates filed for chapter 11 protection on June 12, 2006 (Bankr. D. Del. Case No. 06-10578). The firm of Willkie Farr & Gallagher LLP serves as the Debtors' counsel. Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq., and Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP, represents the Debtors as its co-counsel. The Debtors have retained Rothschild Inc. as their financial advisor. Greenberg Traurig LLP is counsel to the Official Committee of Unsecured Creditors. Jefferies & Co serves as the Committee's financial advisor. At March 31, 2006, the Debtors reported total assets of $201,042,000 and total debts of $473,447,000. (Werner Ladder Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) WINN-DIXIE: Files Management Security Plan Claims Objection ----------------------------------------------------------- As of Winn-Dixie Stores Inc. and its debtor-affiliates' bankruptcy filing, 1,042 individuals were participants in the Debtors' management security plan or senior corporate officers' management security plan. The MSP is a non-qualified defined benefit plan that provided retirement and death benefits to participants. D.J. Baker, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, relates that all claims of participants to benefits under the MSP are unsecured obligations of the Debtors. As a result of the Debtors' Chapter 11 filing, the claims must be treated under the Joint Plan of Reorganization consistent with the provisions of the Bankruptcy Code. All participants in the MSP were mailed notice of the Chapter 11 filing and the requirement to file proofs of claim by the established bar date. The Debtors provided participants with individualized claim forms that included the amount of each participant's claim under the MSP, as of the Petition Date, with a non-priority unsecured status. The Debtors' MSP Determined Amount included benefits discounted to present value using a 5.25% discount rate and a RP2000 white collar generational mortality table. The discount to present value reflected the bankruptcy law principle that claims payable in the future must be reduced to their value at the time of commencement of the bankruptcy case. At the inception of their Chapter 11 cases, the Debtors obtained authorization to continue making retirement and death benefit payments to participants in retirement status and to make payments of up to $25,000 to beneficiaries of participants not in retirement status who die while the company is in bankruptcy protection. The postpetition amounts paid by the Debtors will reduce the proof of claim amounts of the participants who received the payments. As a result of negotiations between the Debtors and the Official Committee of Unsecured Creditors concerning the terms of the Plan, it was determined that the MSP Claims would be treated as unsecured claims but for the components that would be subject to protection as "retiree benefits" under Section 1114 of the Bankruptcy Code. Under the Plan, the MSP will be terminated for all purposes as of the Plan Effective Date. Thus, the Plan provides that benefit accruals under the MSP, and related trust and individual agreements, ceased as of the Petition Date; and no further benefits are payable under the security plans as of October 31, 2006. The Plan further provides that the claims of all vested participants in the MSP will be calculated as of the Debtors' bankruptcy filing without postpetition interest or other accruals, and without regard to service completed after the Petition Date, and will be treated as: (x) Class 15-Retirement Plan Claims if greater than $3,000; (y) Class 17-Small Claims if $3,000 or less; and (z) to the extent applicable, as Class 2-MSP Death Benefit Claims. In preparing to file this Omnibus Objection, the Debtors discovered that an error had been made in determining the present value of MSP Claims as of the Petition Date, thus the amounts included in the individualized proof of claim forms were not accurate, Mr. Baker discloses. Mr. Baker says that although the error was relatively insignificant in amount, the Debtors intend to correct it by increasing the amounts of MSP Claims sought to be fixed and allowed by the Omnibus Objection. The Debtors ask the Court to confirm the allowed amount and status of each MSP Claim, and each component Retirement Plan Claim to be treated in Class 15 or Small Claim to be treated in Class 17 and, if applicable, MSP Death Benefit Claim to be treated in Class 2 by: (a) reclassifying any MSP Claim that was filed in whole or part as a secured, priority or multiple status claim to non-priority unsecured status; (b) reducing any MSP Claim that was filed in an amount that exceeds the Debtors' MSP Determined Amount; (c) dividing the MSP Claims, where applicable, into Retirement Plan Claims or Small Claims and, if applicable, MSP Death Benefit Claims; (d) correcting the present value error to increase the Debtors' MSP Determined Amount of the Retirement Plan Claim or Small Claim by the amount of the error; (e) reducing the corrected amount of those Retirement Plan Claims or Small Claims as to which postpetition payments were made by the present value of such postpetition payments through October 31, 2006; (f) reducing the gross amount of those MSP Death Benefit Claims as to which postpetition payments were made by the gross amount of such postpetition payments through October 31, 2006; and (g) where any MSP Claim is represented by more than one proof of claim, disallowing the additional proofs of claim. A list of the MSP Claims is available free of charge at http://ResearchArchives.com/t/s?1425 Mr. Baker notes that distributions to be made under the Plan on account of allowed Retirement Plan Claims, allowed Small Claims and allowed MSP Death Benefit Claims will be subject to tax withholding, payment, and reporting requirements. The Omnibus Objection assumes that the provisions of the Plan relating to the treatment of Retirement Plan Claims, Small Claims and MSP Death Benefit Claims will be approved, that the Plan is confirmed by the Court, and that it becomes effective in accordance with its terms. If the Plan is not confirmed by the Nov. 16, 2006, hearing date, the Debtors reserve the right to amend or withdraw the Omnibus Objection or to continue the hearing to a later date. Responses to the Omnibus Objection must be filed no later than Nov. 6, 2006. Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc. -- http://www.winn-dixie.com/-- is one of the nation's largest food retailers. The Company operates 527 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi. The Company, along with 23 of its U.S. subsidiaries, filed for chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King & Spalding LLP, represent the Debtors in their restructuring efforts. Paul P. Huffard at The Blackstone Group, LP, gives financial advisory services to the Debtors. Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt give legal advice to the Official Committee of Unsecured Creditors. Houlihan Lokey & Zukin Capital gives financial advisory services to the Committee. When the Debtors filed for protection from their creditors, they listed $2,235,557,000 in total assets and $1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). WINN-DIXIE: Wants Court to Affirm Amount of Retirement Claims ------------------------------------------------------------- Winn-Dixie Stores Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Middle District of Florida to confirm the allowed amount and status of each supplement retirement plan claim that is a Retirement Plan Claim to be treated in Class 15 or a Small Claim to be treated in Class 17 by: (a) reclassifying any SRP Claim that was filed in whole or part as a secured, priority or multiple status claim to non-priority unsecured status; (b) reducing any SRP Claim that was filed in an amount that exceeds the Debtors' SRP Determined Amount; (c) reducing any SRP Claim as to which postpetition payments were made by the aggregate amount of such post-petition payments through Oct. 31, 2006; and (d) where any SRP Claim is represented by more than one proof of claim, disallowing the additional proofs of claim. A list of the SRP Claims is available free of charge at http://ResearchArchives.com/t/s?1426 As of the Debtors' bankruptcy filing, 436 individuals were participants in the Debtors' supplement retirement plan. The SRP is a non-qualified plan of deferred compensation. Under the SRP, participants accrue account balances that include amounts of compensation they have elected to defer, ranging from 1% to 25%, and a matching contribution from the Debtors equal to 50% of the participants' deferred compensation. The accounts are 100% vested and are payable upon termination, either in a lump sum or, if elected, in installments. According to James H. Post, Esq., at Smith Hulsey & Busey, in Jacksonville, Florida, the SRP was intended to constitute an unfunded, unsecured plan, with benefits to be paid from the Debtors' general assets. All claims of participants to benefits under the SRP are unsecured obligations of the Debtors. As a result of the Debtors' Chapter 11 filing, the SRP claims must be treated under the Joint Plan of Reorganization consistent with the provisions of the Bankruptcy Code. All participants in the SRP were mailed notice of the Chapter 11 filing and the requirement to file proofs of claim by the established bar date. The Debtors provided participants with individualized forms that included the amount of each participant's claim under the SRP as of the Petition Date, as determined by the Debtors, with a non-priority unsecured status. The Debtors had obtained authorization from the Court to continue making payments to SRP participants in payment status while they are in bankruptcy protection. The postpetition amounts paid by the Debtors will reduce the proof of claim amounts of the participants who received the payments, Mr. Post relates. As a result of negotiations between the Debtors and the Official Committee of Unsecured Creditors concerning the terms of the Plan, it was determined that the SRP Claims would be treated as unsecured claims. Moreover, the SRP will be terminated for all purposes as of the Plan Effective Date. The Plan provides that benefit accruals under the SRP, and related trust and individual agreements, ceased as of the Petition Date; and no further benefits are payable under such plans, or related trust or individual agreements, as of October 31, 2006. The Plan further provides that the claims of all vested participants in the SRP will be calculated as of the Debtors' bankruptcy filing without postpetition interest or other accruals, and without regard to service completed after the bankruptcy filing, and will be treated as: (i) Class 15-Retirement Plan Claims if greater than $3,000; or (ii) Class 17-Small Claims if $3,000 or less. Mr. Post notes that distributions to be made under the Plan on account of allowed Retirement Plan Claims or Small Claims will be subject to tax withholding, payment, and reporting requirements. If the Plan is not confirmed by the November 16, 2006 hearing date, the Debtors reserve the right to amend or withdraw the Omnibus Objection or to continue the hearing to a later date. The deadline for filing responses to the Omnibus Objection is on Nov. 6, 2006. Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc. -- http://www.winn-dixie.com/-- is one of the nation's largest food retailers. The Company operates 527 stores in Florida, Alabama, Louisiana, Georgia, and Mississippi. The Company, along with 23 of its U.S. subsidiaries, filed for chapter 11 protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063, transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos. 05-03817 through 05-03840). D.J. Baker, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders, Esq., and Brian C. Walsh, Esq., at King & Spalding LLP, represent the Debtors in their restructuring efforts. Paul P. Huffard at The Blackstone Group, LP, gives financial advisory services to the Debtors. Dennis F. Dunne, Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B. Macdonald, Esq., at Akerman Senterfitt give legal advice to the Official Committee of Unsecured Creditors. Houlihan Lokey & Zukin Capital gives financial advisory services to the Committee. When the Debtors filed for protection from their creditors, they listed $2,235,557,000 in total assets and $1,870,785,000 in total debts. (Winn-Dixie Bankruptcy News, Issue No. 57; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * Corporate Revitalization Elects Six New Partners -------------------------------------------------- Corporate Revitalization Partners has elected six directors to partner status. They are: Chuck Kuoni of Chapel Hill, N.C.; Jeff Nerland of Santa Ana, Calif; Bill Roberts of Dallas, Texas; Brad Walker of Dallas, Texas; Don Martin of Houston, Texas; and David Hull of Frisco, Texas. In their new positions, the partners will be more actively involved in marketing the firm's turnaround management services and other partner activities, while continuing to work client engagements. About Corporate Revitalization Corporate Revitalization Part is a national turnaround management firm that guides distressed companies back to stability and profitability through hands-on leadership and management. It is committed to restoring companies' predictability, credibility and value as quickly as possible. 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. * Deloitte Fin'l. Promotes 20 Professionals in its Three Divisions ------------------------------------------------------------------ Deloitte Financial Advisory Services LLP has promoted 20 key individuals within its Forensic & Dispute Services, Valuation Services, Reorganization Services and Corporate Finance practices. Three individuals were also promoted in Deloitte Services LP, which supports Deloitte FAS. "Each of these leaders has made a significant contribution to the thoughtful, yet aggressive, expansion of Deloitte Financial Advisory Services LLP," said Frank Piantidosi, Chairman and CEO, Deloitte FAS. "Specializing in fields ranging from forensic investigation to business valuation, bankruptcy turnaround to corporate finance, these individuals have spearheaded our efforts to support the needs of our growing client base." The newly promoted Deloitte FAS and Deloitte Services LP professionals are: Name Age Title Service Line Office ---- --- ----- ------------ ------ Maria 41 Director Marketing Boston Abernethy Yogesh 34 Partner Forensic New York Bahl & Dispute Services Matt 37 Partner Forensic Chicago Bialecki & Dispute Services Matt 35 Partner Forensic St. Louis Birk & Dispute Services Jeffrey 36 Director Technology Dallas Blackwell Mark 45 Principal Forensic New York Blumkin & Dispute Services Peter 34 Principal Valuation New York Caputo Services Rebecca 34 Partner Forensic Boston Chasen & Dispute Services Ellen 37 Principal Corporate Detroit Clark Finance Frederick 44 Principal Forensic Washington D.C. Curry & Dispute Services Keturah 48 Director Valuation Atlanta Henderson Services Andrew 41 Principal Corporate Chicago Isgrig Finance Craig 42 Director Valuation Washington D.C. Kettler Services Dan 42 Principal Valuation Boston Knappenberger Services Kenneth 50 Director Forensic New York Leissler & Dispute Services Daniel 43 Director Reorganization New York O'Brien Services Corey 31 Partner Forensic Chicago Martens & Dispute Services Kevin 37 Principal Corporate Los Angeles McFarlane Finance Greg Miocic 39 Director Valuation Pittsburgh Services Sonya Murphy 38 Partner National San Francisco Risk Mgt. Silvia Smyth 41 Principal Forensic Washington D.C. & Dispute Services William 52 Director Valuation Los Angeles Steele Services MJ Wheble 46 Director Human Wilton, CT Resources Deloitte FAS, a subsidiary of Deloitte & Touche USA LLP, offers advice to clients on critical financial and economic events and transactions through the service lines of Corporate Finance, Forensic & Dispute Services, Reorganization Services and Valuation Services. The Corporate Finance* service line operates within a separate legal entity under the name Deloitte & Touche Corporate Finance LLC, which is a subsidiary of Deloitte FAS. * Partners and principals assigned to Deloitte & Touche Corporate Finance LLC reside within Deloitte FAS, its parent company. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms and their respective subsidiaries and affiliates. As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other's acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names "Deloitte", "Deloitte & Touche", "Deloitte Touche Tohmatsu" or other related names. Services are provided by the member firms or their subsidiaries or affiliates and not by the Deloitte Touche Tohmatsu Verein. Deloitte & Touche USA LLP is the US member firm of Deloitte Touche Tohmatsu. In the US, services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- November 2, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA UK Annual Conference Millennium Gloucester Hotel, London, UK Contact: http://www.turnaround.org/ November 2-3, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Third Annual Conference on Physician Agreements & Ventures Successful Strategies for Medical Transactions and Investments The Millennium Knickerbocker Hotel - Chicago Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 3, 2006 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS AIRA/NCBJ Breakfast Program Marriott, San Francisco, CA Contact: 415-896-1600 or http://www.airacira.org/ November 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Marriott, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 7-8, 2006 EUROMONEY 5th Annual Distressed Debt Investment Symposium Hyatt Regency, London, UK Contact: http://www.euromoneyplc.com/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon & Guest Speaker, Joel Naroff to discuss the economy, lending and M&A markets Davio's Northern Italian Steakhouse, Philadelphia, PA Contact: http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Marriott Tyson's Corner, Vienna, Virginia Contact: 703-912-3309 or http://www.turnaround.org/ November 8, 2006 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia National Conference Sydney, Australia Contact: http://www.turnaround.org/ November 9, 2006 TURNAROUND MANAGEMENT ASSOCIATION Webinar "Second Lien Financing or Investing: Are There Opportunities for You?" TMA HQ, Chicago, IL Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program St. Louis, Missouri Contact: 815-469-2935 or http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Program - Cost Containment Strategies St. Louis, MO Contact: http://www.turnaround.org/ November 14, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Cocktail Reception Honoring the Bankruptcy Benches of the Southern & Eastern Districts of New York and New Jersey Association of the Bar of the City of New York New York, NY Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint Reception with NYIC/NYTMA TBA, New York Contact: 908-575-7333 or http://www.turnaround.org/ November 15, 2006 LI TMA Formal Event TMA Australia National Conference Long Island, New York Contact: http://www.turnaround.org/ November 15, 2006 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Citrus Club, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ November 15-16, 2006 EUROMONEY INSTITUTIONAL INVESTOR Asia Capital Markets Forum Island Shangri-La, Hong Kong Contact: http://www.euromoneyplc.com/ November 16, 2006 BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA New Legal Strategies for Retaining Executives at Troubled Companies Contact: 240-629-3300; http://www.beardaudioconferences.com/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Duquesne Club, Pittsburgh, Pennsylvania Contact: http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, Washington Contact: 503-223-6222 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Dinner Program TBA, Seattle, WA Contact: 403-294-4954 or http://www.turnaround.org/ November 16, 2006 TURNAROUND MANAGEMENT ASSOCIATION Life in the Bankruptcy Court with BAPCPA, A View from The Bench Oxford Hotel, Denver, CO Contact: http://www.turnaround.org/ November 16-17, 2006 STRATEGIC RESEARCH INSTITUTE 8th Annual West Distressed Debt Investing Forum Venetian Resort Hotel Casino, Las Vegas, NV Contact: http://www.srinstitute.com November 17, 2006 TURNAROUND MANAGEMENT ASSOCIATION Breakfast with Harry Nolan, Author of Airline without a Pilot - Lessons in Leadership Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ November 23, 2006 TURNAROUND MANAGEMENT ASSOCIATION Martini Party Vancouver, British Columbia Contact: 403-294-4954 or http://www.turnaround.org/ November 23-24, 2006 EUROMONEY CONFERENCES 5th Annual China Conference China World Hotel Beijing, China Contact: http://www.euromoneyconferences.com/ November 27-28, 2006 BEARD GROUP & RENAISSANCE AMERICAN CONFERENCES Thirteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Essex House Hotel - New York Contact: 903-595-3800; 1-800-726-2524; http://www.renaissanceamerican.com/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ November 28, 2006 TURNAROUND MANAGEMENT ASSOCIATION Joint TMA Florida/ACG Tampa Bay Luncheon Buying and Selling a Troubled Company Centre Club, Tampa, FL Contact: http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Special Program TBA, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2006 TURNAROUND MANAGEMENT ASSOCIATION Turnaround Industry Trends Jasna Polana, Princeton, NJ Contact: http://www.turnaround.org/ November 30, 2006 EUROMONEY CONFERENCES Euromoney/DIFC Annual Conference Managing superabundant liquidity Madinat Jumeirah, Dubai Contact: http://www.euromoneyconferences.com/ November 30-December 2, 2006 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Hyatt Regency at Gainey Ranch, Scottsdale, Arizona Contact: 1-703-739-0800; http://www.abiworld.org/ December 5, 2006 EUROMONEY CONFERENCES CFO Forum Hyatt Regency, Hangzhou, China Contact: http://www.euromoneyconferences.com/ December 6, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Dinner Portland, Oregon Contact: 503-223-6222 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast The Newark Club, Newark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ December 7, 2006 TURNAROUND MANAGEMENT ASSOCIATION Cash Management After The Storm: Near-Term Planning for Long-Term Business Success Sheraton, Metairie, LA Contact: http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION LI TMA Holiday Party TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ December 13, 2006 TURNAROUND MANAGEMENT ASSOCIATION Christmas Function GE Commercial Finance, Sydney, Australia Contact: 0438 653 179 or http://www.turnaround.org/ December 20, 2006 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA, AVF & CFA Georgia Aquarium, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lender's Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ January 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Lender's Panel Breakfast Westin Buckhead, Atlanta, GA Contact: http://www.turnaround.org/ January 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 17-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Distressed Investing Conference Wynn, Las Vegas, NV Contact: http://www.turnaround.org/ February 8-11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Certified Turnaround Professional (CTP) Training NY/NJ Contact: http://www.turnaround.org/ February 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA PowerPlay - Atlanta Thrashers Philips Arena, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ January 25-27, 2007 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Hyatt Regency, Denver, CO Contact: 1-703-739-0800; http://www.abiworld.org/ February 25-26, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Marriott Park City, UT Contact: http://www2.nortoninstitutes.org/ February 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium San Juan, Puerto Rico Contact: 1-703-739-0800; http://www.abiworld.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, Texas Contact: http://www.turnaround.org/ March 29-31, 2007 ALI-ABA Chapter 11 Business Reorganizations Scottsdale, Arizona Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, WY Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or www.turnaround.org July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, Florida Contact: http://www.ncbj.org/ October 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ December 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, NV Contact: http://www.airacira.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place, Boston, Massachusetts Contact: 312-578-6900; http://www.turnaround.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers - the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Emerging Role of Corporate Compliance Panels Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Market Opportunities Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Contact: http://www.beardaudioconferences.com 240-629-3300 BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Contact: http://www.beardaudioconferences.com 240-629-3300 The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Robert Max Victor M. Quiblat II, Shimero R. Jainga, Joel Anthony G. Lopez, Melvin C. Tabao, Rizande B. Delos Santos, Cherry A. Soriano-Baaclo, Ronald C. Sy, Jason A. Nieva, Lucilo M. Pinili, Jr., Tara Marie A. Martin, and Peter A. Chapman, Editors. Copyright 2006. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $725 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***