TCR_Public/070104.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

             Thursday, January 4, 2007, Vol. 11, No. 3

                             Headlines

AB LIQUIDATING: Court Moves Claims Objection Deadline to July 30
ADVANCED MARKETING: Case Summary & 40 Largest Unsecured Creditors
AVITAR INC: BDO Seidman LLP Raises Going Concern Doubt
B-FAST CORPORATION: Withum Smith Raises Going Concern Doubt
BIOVEST INTERNATIONAL: Aidman Piser Raises Going Concern Doubt

CALA CORP: Earns $55,780 of Net Income in Quarter Ended Sept. 30
CARBIZ INC: October 31 Stockholders' Deficiency Rises to $3.4 Mil.
CERADYNE INC: Gets $133 Million Body Armor Order from U.S. Army
CERADYNE INC: Gets $3.8 Million in Total Orders for HUMVEE Armor
COLLINS & AIKMAN: Wants Solicitation Process of Amended Plan Fixed

COLLINS & AIKMAN: Inks Fifth Amendment of DIP Loan with JPMorgan
COMPLETE RETREATS: Court Okays Fairfax as Panel's Forensic Advisor
COMPLETE RETREATS: Wants to Sell 3 Real Properties for $3.14 Mil.
CWALT INC: Fitch Puts Low-B Ratings on $5.4 Million Class Certs.
CWMBS INC: Fitch Rates $2.082 Million Class B-3 Certs. at BB

DELPHI CORP: Moody's Rates $2.49 Bil. 2nd Priority Loan at Ba3
DELTA AIR: Official Committee Taps Gordon Bethune as Consultant
DELTA AIR: Can Amend and Assume SAP Software License Pact
DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel
EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute

ENTERGY NEW ORLEANS: Court OKs Stipulation with Bank of NY, et al.
EUROPEAN REINSURANCE: Chapter 15 Petition Summary
FLYI INC: Court Approves Stipulation on Kerry Skeen's Claim
FOAMEX INT'L: Court Approves FMXI's Conversion Into Delaware LLC
FOAMEX INT'L: Foamex LP Inks Stipulation Resolving Alcazar Action

FORD MOTOR: U.S. December Sales Down 13%; Full 2006 Sales Down 8%
FREEDOM PACKAGING: Case Summary & 20 Largest Unsecured Creditors
GALAXY MINERALS: Voluntary Chapter 11 Case Summary
GENERAL MOTORS: U.S. December Sales Down 9.6%; 2006 Sales Down 9%
GLOBAL POWER: Wants to Reject Executory and Lease Contracts

GLOBAL POWER: Wants to Removal Period Extended Until March 27
GRANITE BROADCASTING: Equity Holders Want Own Committee Formed
GRANITE BROADCASTING: Wants to Assume CBS/WB Settlement Agreement
INCO LIMITED: Shareholders Approve Merger with Itabira Canada
INDYMAC MBS: Fitch Rates $4.7 Million Certificates at BB

J.P. MORGAN: Moody's Rates Class M-10 Certificates at Ba1
KAISER ALUMINUM: Names Martin Carter as VP in Common Alloy Unit
LASALLE COMMERCIAL: Fitch Puts Low-B Ratings on $15.2 Mil. Certs.
LB-UBS COMMERCIAL: Moody's Puts Low-B Ratings on 6 Cert. Classes
LEHMAN MORTGAGE: Fitch Puts Low-B Ratings on $4.7 Million Certs.

LEVEL 3: Completes $744 Mil. Cash Acquisition of Broadwing Corp.
LUMTRON TECH: Case Summary & 20 Largest Unsecured Creditors
MSGI SECURITY: Amper Politziner Raises Going Concern Doubt
MUSICLAND HOLDING: Court Extends Plan's Effective Date to Feb. 28
MUSICLAND HOLDING: Tracy Kirkman, Et al. Want 2 Classes Certified

NORTH AMERICA STEAMSHIPS: Chapter 15 Petition Summary
NVF COMPANY: Wants Exclusive Plan-Filing Period Moved to Feb. 16
OWENS CORNING: Court Okays Stipulation Resolving Mayer's Claim
OWENS CORNING: Wants Burchfield Whitmire Settlement Approved
PIEDMONT/HAWTHORNE: Moody's Rates Proposed Credit Facility at B1

PSIVIDA LIMITED: Lender Agrees to Forbearance on Defaults
RESIDENTIAL ACCREDIT: Fitch Puts Low-B Ratings on Two Class Certs.
ROUGE INDUSTRIES: Wants Plan-Filing Period Extended to Jan. 19
SAINT VINCENTS: Can Assume and Assign Queens Tower Lease
SAINT VINCENTS: Exclusive Plan-Filing Period Extended to Jan. 19

SERACARE LIFE: Files Amended Disclosure Statement in California
SIRICOMM INC: BKD LLP Raises Going Concern Doubt
SMART PAPERS: Sells Assets to Plainfield & Emerges from Chapter 11
SOUNDVIEW HOME: Fitch Rates Privately Offered Class Certs. at BB+
SOUNDVIEW HOME: Moody's Cuts Rating on Class M-3 Certs. to Ba2

VISANT HOLDING: Moody's Revises Outlook to Developing
WHX CORP: OMG Buys Fastener Biz from Illinois Tools for $26 Mil.
WINN-DIXIE STORES: Balks at Internal Revenues' Claims
WINN-DIXIE: Court Okays Coca-Cola & VR Global Settlement Pact

* Thacher Proffitt Appoints Cullen, Barbiere and Oloko as Partners

* Chapter 11 Cases with Assets & Liabilities Below $1,000,000

                             *********

AB LIQUIDATING: Court Moves Claims Objection Deadline to July 30
----------------------------------------------------------------  
The U.S. Bankruptcy Court for the Northern District of California,
San Jose Division, gave AB Liquidating Corporation fka Adaptive
Broadband Corporation until July 30, 2007, to file objections to
claims and interests filed in its chapter 11 case.

The Debtor asked for the extension to prepare objections which may
be required if there is a distribution to shareholders.

The Debtor's deadline for filing objections to claims expired on
Dec. 31, 2006.

Headquartered in Sunnyvale, California, AB Liquidating Corp.
fka Adaptive Broadband Corporation provided technology for the
deployment of broadband wireless communication over the Internet.  
The Company filed for chapter 11 protection on July 26, 2001
(Bankr. N.D. Cal. Case No. 01-53685).  David M. Bertenthal, Esq.,
at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP
represents the Debtor in its bankruptcy case.  Cheryl Jordan,
Esq., at the Law Offices of Murray and Murray represents the
Official Committee of Unsecured Creditors.  The Bankruptcy Court
confirmed the Debtor's chapter 11 Plan on Feb. 28, 2002, and the
Plan took effect on Sept. 6, 2002.


ADVANCED MARKETING: Case Summary & 40 Largest Unsecured Creditors
-----------------------------------------------------------------
Lead Debtor: Advanced Marketing Services, Inc.
             5880 Oberlin Drive
             San Diego, CA 92121


Bankruptcy Case No.: 06-11480

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Publishers Group Incorporated              06-11481
      Publishers Group West Incorporated         06-11482

Type of Business: Advanced Marketing  provides customized
                  merchandising, wholesaling, distribution and
                  publishing services, currently primarily to the
                  book industry.  The company has operations in
                  the U.S., Mexico, the United Kingdom and
                  Australia and employs approximately 1,200 people
                  Worldwide.  See http://www.advmkt.com/

Chapter 11 Petition Date: December 29, 2006

Court: District of Delaware (Delaware)

Judge: Christopher S. Sontchi

Debtors' Counsel: Chun I. Jang, Esq.
                  Mark D. Collins, Esq.
                  Paul Noble Heath, Esq.
                  Richards, Layton & Finger, P.A.
                  920 North King Street
                  P.O. Box 551
                  Wilmington, DE 19899
                  Tel: (302) 651-7700
                  Fax: (302) 651-7701

                          Estimated Assets       Estimated Debts
                          ----------------       ---------------
Advanced Marketing        More than              More than
  Services, Inc.          $100 Million           $100 Million

Publishers Group          $1 Million to          $1 Million to
  Incorporated            $100 Million           $100 Million

Publishers Group          $1 Million to          $1 Million to
  West Incorporated       $100 Million           $100 Million

Debtors' Consolidated List of 40 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Random House                  Trade Debt             $43,347,815
1540 Broadway
New York, NY 10036
Attn: Bill Sinnott
Tel: (410) 386-7480
Fax: (410) 386-7439

Simon & Schuster Inc.         Trade Debt             $26,457,886
1230 Avenue of the Americas
New York, NY 10020
Attn: David England
Tel: (212) 689-7022
Fax: (212) 698-1258

Penguin Putnam, Inc.          Trade Debt             $24,614,829
375 Hudson Street
New York, NY 10014
Attn: Michelle Cangialosi
Tel: (201) 767-2916
Fax: (201) 767-5162

Hachette Book Group USA       Trade Debt             $22,569,624
dba Hachette and Time
Warner Publishing
Three Center Plaza
Boston, MA 02108-2084
Attn: Steve Mubarek
Tel: (617) 263-1949
Fax: (617) 263-2978

HaperCollins US               Trade Debt             $18,029,249
3030 Robinson Road
Jefferson City, MO 65111
Attn: John Shearer
Tel: (570) 941-1244
Fax: (570) 941-1590

Publications International    Trade Debt             $12,546,943
7373 North Cicero Avenue
Lincolnwood, IL 60712-1613
Attn: Jeff Coyle
Tel: (847) 329-5355
Fax: (847) 329-5810

VHPS                          Trade Debt              $9,597,108
175 Fifth Avenue
20th Floor
New York, NY 10010
Attn: Peter Garabedian
Tel: (646) 307-5451
Fax: (917) 302-7466

Andrews McMeel Publishing     Trade Debt              $8,658,324
4520 Main Street
Kansas City, MO 64111
Attn: Thom Thorton
Tel: (816) 932-6700
Fax: (816) 932-6735

John Wiley & Sons, Inc.       Trade Debt              $6,030,223
One Wiley Drive
Somerset, NJ 08875-1272
Attn: Dean Karrel
Tel: (201) 748-6275
Fax: (201) 748-8641

Leisure Arts                  Trade Debt              $4,685,334
80 Willow Park Road
Menlo Park, CA 94025
Attn: Rich Smeby
Tel: (650) 324-5505
Fax: (650) 324-1532

Workman Publishing Company    Trade Debt              $4,403,889
225 Varick Street
New York, NY 10014-4381
Attn: Phil Gerace
Tel: (212) 614-7565
Fax: (212) 254-8098

Rich Publishing LLC           Trade Debt              $4,380,171
6611 North 64th Place
Paradise Valley, AZ 85253
Attn: Sharon Lechter
Tel: (480) 607-1940
Fax: (480) 949-6085

Chronicle Books               Trade Debt              $4,344,797
275 Fifth Street
San Francisco, CA 94103
Attn: Jack Jensen
Tel: (415) 777-7240
Fax: (415) 777-8887

Meredith Corporation          Trade Debt              $4,333,958
1716 Locust Street
Des Moines, IA 50309
Attn: Ken Zagor
Tel: (515) 284-2282
Fax: (515) 284-3947

Houghton Mifflin Trade Div.   Trade Debt              $2,564,958
222 Berkeley Street
Boston, MA 02116
Attn: Gary Gentel
Tel: (617) 351-5927
Fax: (617) 351-1185

Avalon Publishing Group       Trade Debt              $2,297,489
1400 65th Street
Suite 250
Emeryville, CA 94608
Attn: Susan Reich
Tel: (510) 595-3664
Fax: (510) 595-4228

United States Playing         Trade Debt              $2,015,057
Card Co.
2510 Reliable Parkway
Chicago, IL 60686-0025
Attn: Amy Bruno
Tel: (800) 542-7430 ext. 7507
Fax: (513) 396-5878

Zondervan                     Trade Debt              $2,002,239
5300 Patterson Avenue, SE
Grand Rapids, MI 49530
Attn: Verne Kenney
Tel: (616) 698-6548
Fax: (616) 698-3313

Global Book Publishing        Trade Debt              $1,747,737
Level 8, 15 Orion Road
Lane Cove, NSW
Australia 2066
Attn: Cheryl Perry
Tel: (+612) 9425-5800
Fax: (+612) 9967-5891

Cook Illustrated              Trade Debt              $1,483,506
17 Station Street
Brookline, MA 02445
Attn: Demee Gambulos
Tel: (617) 232-1000
Fax: (617) 232-1572

Client Distribution Service   Trade Debt              $1,443,775
378 Park Avenue South
12th Floor
New York, NY 10016
Attn: Tom Allen
Tel: (212) 340-8130
Fax: (212) 340-8105

National Book Network         Trade Debt              $1,137,465
15200 NBN Way
Blue Ridge Summit, PA 17214
Attn: Jeff Harris
Tel: (717) 794-3807
Fax: (717) 794-3804

New World Library             Trade Debt              $1,122,419
14 Pamaron Way
Novato, CA 94949
Attn: Munro Magruder
Tel: (415) 884-2100 Ext. *8+21
Fax: (415) 884-2199

Grove/Atlantic                Trade Debt              $1,079,889
841 Broadway, 4th Floor
New York, NY 10003-4793
Attn: Eric Price
Tel: (212) 614-7907
Fax: (212) 614-7886

Hugh L. Levin Associates      Trade Debt              $1,029,831
9 Burr Road
Westport, CT 06880
Attn: Hugh Levin
Tel: (203) 227-6422
Fax: (203) 227-6717

Good Books                    Trade Debt                $969,723
P.O. Box 419
7195 Grayson Road
Intercourse, PA 17534
Attn: Merle Good
Tel: (800) 762-7171 Ext. 250
Fax: (800) 762-7171

Amber-Allen Publishin Inc.    Trade Debt                $957,356
68 Mitchell Boulevard
Suite 215
San Rafael, CA 94903
Attn: Karen Krieger
Tel: (415) 499-4657
Fax: (415) 499-3174

Millennium House              Trade Debt                $909,552
52 Bolwarra Road
Elanora Heights, NSA
Australia 2101
Attn: Gordon Cheers
Tel: (612) 9970-6850
Fax: (612) 9970-8136

Tyndale House Publishing      Trade Debt                $852,719
370 Executive Drive
Carol Stream, IL 60188
Attn: Everett O'Brian
Tel: (603) 668-8300 Ext. 258
Fax: (630) 668-8905

Hinkler Books Pty. Ltd.       Trade Debt                $841,780
17-23 Redwood Drive
Dingley Village, Victoria
Australia 3172
Attn: Stephen Ungerer
Tel: (613) 9552-1313
Fax: (613) 9558-2566

Becker & Mayer                Trade Debt                $818,449
11010 Northup Way
Bellevue, WA 98004
Attn: Jim Becker
Tel: (425) 827-7120 Ext. 111
Fax: (425) 828-9659

Banta Book Group              Trade Debt                $808,329
675 Brighton Beach Road
Menasha, WI 54950
Attn: Stephanie Streeter
Tel: (920) 751-7777
Fax: (920) 751-7799

Avalanche Publishing          Trade Debt                $797,215
15262 Pipeline Lane
Huntington Beach, CA 92649
Attn: Ray Sharabba
Tel: (800) 888-6421
Fax: (714) 898-2450

Harcourt Brace & Company      Trade Debt                $792,490
525 B. Street, Suite 1900
San Diego, CA 92101
Attn: Dan Farley
Tel: (619) 699-6816
Fax: (619) 699-6596

Rodale Press Inc.             Trade Debt                $772,899
733 Third Avenue
New York, NY 10017
Attn: Liz Perl
Tel: (212) 573-0226
Fax: (212) 682-2237

Anness Publishing Inc.        Trade Debt                $763,854
Hermes House
88/89 Blackfriars Road
London, England SEI 8HA
Attn: Paul Anness
Tel: +44207754400
Fax: 011-44-207-633-9499

Triumph Books                 Trade Debt                $755,611
601South LaSalle Street
Suite 500
Chicago, IL 60605
Attn: Phil Springstead
Tel: (941) 351-5060
Fax: (312) 663-3557

Anova Books Co. Ltd.          Trade Debt                $734,976
Promotional Reprint Co. Ltd.
151 Freston Road
London, England W10 6TH
Attn: Robin Wood
Tel: 39-0161/294203
Fax: 44-020-7314-1584

Gallup Inc.                   Trade Debt                $654,050
901 F Street, Northwest
Washington, DC 20004
Attn: Piotr Juszkiewicz
Tel: (402) 938-6176
Fax: (402) 938-5920

Black Dog & Leventhal         Trade Debt                $630,127
Publisher
151 West 19th Street
New York, NY 10011
Attn: J.P. Leventhal
Tel: (212) 647-9336 Ext. 101
Fax: (212) 647-9332


AVITAR INC: BDO Seidman LLP Raises Going Concern Doubt
------------------------------------------------------
BDO Seidman LLP, in Boston, Massachusetts, expressed substantial
doubt about Avitar Inc.'s ability to continue as a going concern
after auditing the company's financial statements for the year
ended Sept. 30, 2006.  The auditing firm pointed to the company's
recurring losses from operations, working capital and stockholders
as of Sept. 30, 2006.

Avitar Inc. reported a $3.7 million net loss on $4.9 million of
sales for the year ended Sept. 30, 2006, compared with a
$2.4 million net loss on $4.5 million of sales for the year ended
Sept. 30, 2005.

Sales for the fiscal year ended Sept. 30, 2006, increased
$415,863.  The results for fiscal 2006 primarily reflect an
increase in the volume of sales for its OralScreen(R) and foam  
products of $435,000, offset in part by a decrease of $19,000 in
revenue from contraband detection services.

The $1.3 million increase in net loss is mainly due to the
$1.3 million increase in interest expense, the $741,213 decrease
in other income, partially offset by the $660,052 decrease in loss
from operations resulting from the increase in sales, and $120,000
income from disposal of discontinued operations.

The $1.3 million increase in interest expense for fiscal 2006
primarily resulted from interest expense on higher borrowings of
approximately $255,000, non-cash interest expense of $605,000  
representing the incremental fair value of warrants issued as
replacement for outstanding warrants held by debt holders and
higher amortization of deferred financing costs and debt discount
of approximately $449,000 associated with outstanding debt
obligations executed by the company in fiscal 2005 and fiscal
2006.

The $741,213 decrease in other income in fiscal 2006 resulted
primarily from the changes in the fair market value of embedded
derivative securities and warrants.

The $120,000 income from disposal of discontinued operations
relates to the Dec. 16, 2003 sale of the business and net assets,
excluding cash, of its subsidiary United States Drug Testing
Laboratories Inc.  Under the term of the settlement agreement in
November 2005, the company opted to receive an immediate lump sum
payment of $120,000 rather than wait for the 10 to 14 years that
the company believed it would take to collect the balance of      
$500,000 which was conditioned on the buyer attaining uncertain
future revenues from the operations of the purchased subsidiary.

At Sept 30, 2006, the company's balance sheet showed $2.3 million
in total assets, $7.3 million in total liabilities, $3.2 million
in redeemable convertible preferred stock and convertible
preferred stock, resulting in an $8.2 million total stockholders'
deficit.

Full-text copies of the company's consolidated financial
statements for the year ended Sept. 30, 2006, are available for
free at http://researcharchives.com/t/s?17f5

Avitar Inc. (OTC BB: AVTI.OB )-- http://www.avitarinc.com/--  
develops, manufactures and markets innovative and proprietary
products.  Their field includes the oral fluid diagnostic market,
the disease and clinical testing market, and customized
polyurethane applications used in the wound dressing industry.  
Avitar manufactures ORALscreen(R), the world's first non-invasive,
rapid, onsite oral fluid test for drugs-of-abuse, as well as
HYDRASORB(R), an absorbent topical dressing for moderate to heavy
exudating wounds. Avitar is also developing diagnostic strategies
for disease and clinical testing in the estimated $25 billion in-
vitro diagnostics market.  Conditions targeted include influenza,
diabetes, and pregnancy.


B-FAST CORPORATION: Withum Smith Raises Going Concern Doubt
-----------------------------------------------------------
Withum Smith and Brown P.C., in Princeton, New Jersey, expressed
substantial doubt about b-Fast Corp.'s ability to continue as a
going concern after auditing the company's financial statements
for the year ended Sept. 30, 2006.  The auditing firm pointed to
the company's working capital deficiency and stockholders'
deficiency.

b-Fast Corp. reported $483,000 of net income for the year ended
Sept. 30, 2006, compared with a $1.1 million net loss for the year
ended Sept. 30, 2005.  The company had no revenues in both
periods.

The $1.6 million increase in income from a net loss of
$1.1 million in fiscal 2005 to a $483,000 net income in fiscal
2006 is primarily due to the $1.8 million increase in income from
the discontinued operations of the Harrisburg fixed base
operation, partially offset by the increase in interest expense of
$327,000.

The $2.5 million income from discontinued operations recorded for
fiscal 2006 includes approximately $2 million of gain on the sale
of the fixed base operation, and $95,000 gain on the sale of
aircraft in June 2006, with the balance of $446,000 the result of
operations for the ten month period.

At Sept. 30, 2006, the company's balance sheet showed $8.6 million
in total assets, $29.4 million in total liabilities, and $388,000
in deferred revenues, resulting in a $21.1 million total
stockholders' deficit.

The company's balance at Sept. 30, 2006, also showed strained
liquidity with $2.5 million in total current assets available to
pay $29.4 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the year ended Sept. 30, 2006, are available for
free at http://researcharchives.com/t/s?17ec

             Sale of Fixed Base Operation and Aircraft

On June 7, 2006, the company sold its Beech King Air aircraft that
had been used for charter for $967,000 and paid off the note and
accrued interest due to Cessna Finance Corporation in the amount
of $877,000.  The sale generated a gain of $95,000.

On July 25, 2006, the company sold its remaining fixed base
operation at Harrisburg, Pennsylvania to Avflight Harrisburg Corp.  
for $2,610,000.  

b-Fast Corp. (Other OTC: BFTC.PK), prior to the sale of the
Harrisburg fixed base operation, supplied ground support services
for general aviation aircraft at the Harrisburg International
Airport located in Middletown, Pennsylvania.


BIOVEST INTERNATIONAL: Aidman Piser Raises Going Concern Doubt
--------------------------------------------------------------
Aidman Piser & Company P.A., in Tampa, Florida, expressed
substantial doubt about Biovest International Inc.'s ability to
continue as a going concern after auditing the company's financial
statements for the year ended Sept. 30, 2006.  The auditing firm
cited that the company incurred significant losses and used cash
in operating activities during the years ended Sept. 30, 2006 and
2005, and had working capital and shareholders' deficits at
Sept. 30, 2006.

Biovest International Inc. reported a $13.7 million net loss on
$7.3 million of total revenues for the fiscal year ended
Sept. 30, 2006, compared with an 11.5 million net loss on
$5.1 million of total revenues for fiscal 2005.

The overall increase in revenue was due to increased contract cell
culture manufacturing and instrument hardware sales.  Instrument
and disposable sales increased to $4.6 million in fiscal 2006 from
$3 million in fiscal 2005.

The $2.2 million increase in net loss is primarily due to the
$2.1 million increase in research and development expenses, the
$967,000 increase in marketing, general and administrative
expenses, and the $1.5 million increase in interest expense,
partly offset by a $193,000 derivative gain and the $71,000
increase in other income/expense, which more than offset the gross
profit increase of $2.1 million.

The overall gross margin for the fiscal 2006 increased to
approximately 47% from 26% in the prior year.  This was due to
improved hardware sales, more optimal product mix and improved
production results.  Included in cost of sales in fiscal 2005 was
an inventory write off of approximately $400,000, representing
primarily inventory on-hand in the June 2003 Accentia acquisition
of a controlling interest in Biovest, and determined in the fiscal
2005 to be obsolete.

Research and vaccine development expenses for fiscal 2006  
increased due to increased spending for the BiovaxID Phase 3
clinical trial and continued development of the company's
automated instrument, AutovaxID.  Marketing and general and
administrative expenses during fiscal year 2006 increased
primarily due stock compensation expense of $500,000, compared to
zero in fiscal 2005.  The remainder of the increase in marketing,
general, and administrative expenses came mostly from costs
related to increased professional fees.

Interest expense increased due to the issuance of the Laurus notes
payable and associated discount amortization and expense
associated with guarantees.  

The company also allocated a portion of the Laurus debt to a
derivative liability.  The derivative liability is valued at the
end of each quarter, and adjusted accordingly.  In the fourth
quarter of fiscal 2006, the company recorded a $193,000 gain on
change in derivative liability.

At Sept. 30, 2006, the company's balance sheet showed $8.4 million
in total assets, $15.4 million in total liabilities, $3.6 million
in variable interest entities, and $6 million in non controlling
interest in consolidated subsidiary, resulting in a $16.5 million
total stockholders' deficit.

The company's balance sheet at Sept. 30, 2006, also showed
strained liquidity with $4.3 million in total current assets
available to pay $13.3 million in total current liabilities.

Full-text copies of the company's financial statements for the
year ended Sept. 30, 2006, are available for free at
http://researcharchives.com/t/s?17f9

                          Laurus Financing

On Mar. 31, 2006, the company closed a financing transaction with
Laurus Master Fund Ltd. whereby Laurus purchased from the company
a secured promissory note in the principal amount of $7.8 million
and a warrant to purchase up to 18,087,889 shares of common stock
at an exercise price of $.01 per share.  The proceeds of the
transaction were placed in a restricted account requiring Laurus'
consent before release and was intended to be used in connection
with NMTC related financings.

On Apr. 26, 2006, $2.5 million of the restricted funds was
released in connection with the first NMTC transaction and on
Aug. 2, 2006, an additional sum of $2.5 million was released
pursuant an amendment to the Restricted Account Agreement and Side
Letter Agreement.  The final $2.5 million was released in
connection with a second NMTC transaction in December 2006.

                    About Biovest International

Biovest International Inc. (OTC BB: BVTI.OB) --
http://www.biovest.com/-- develops advanced individualized  
immunotherapies for life-threatening cancers of the blood system.  
In addition, Biovest develops, manufactures and markets patented
cell culture systems, including the innovative AutovaxID(TM),
which is being developed as an automated vaccine manufacturing
instrument and for production of cell-based materials and
therapeutics.  Biovest's therapy for follicular non-Hodgkin's
lymphoma is currently in a Phase 3 pivotal clinical trial at more
than 20 major centers in the U.S., and is being conducted under a
Cooperative Research and Development Agreement (CRADA) with the
National Cancer Institute.  Biovest is a majority-owned subsidiary
of Accentia Biopharmaceuticals Inc.


CALA CORP: Earns $55,780 of Net Income in Quarter Ended Sept. 30
----------------------------------------------------------------
Cala Corp. reported $55,780 of net income on $13,952 of sales for
the quarter ended Sept. 30, 2006, compared to a $223,093 net loss
on zero revenues for the same period in 2005.

The company derived revenue purely from rental income.

The company's net income consisted of $91,337 income from
continued operations and a loss $35,557 from discontinued
operations for the quarter ended Sept. 30, 2006.  The discontinued
operations relate to two restaurants subleased to two separate
entities on Aug. 1, 2006.

The $91,337 income was realized in view of the capitalization of
previously expensed ship design costs of which $128,950 was
expensed in the current quarter.  This resulted in selling,
general and administrative expenses of $99,209 for the quarter
ended Sept. 30, 2006, compared to $223,093 for the same period in
2005.

At Sept. 30, 2006, the company's balance sheet showed $1.2 million
in total assets, $1 million in total liabilities, and $184,305 in
total stockholders' equity.

The company's balance sheet at Sept. 30, 2006, also showed
strained liquidity with $34,830 in total current assets available
to pay $462,169 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended Sept. 30, 2006, are available for
free at http://researcharchives.com/t/s?17ee

                      Going Concern Doubt

George Brenner, CPA, in Los Angeles, California, expressed
substantial doubt about Cala Corp.'s ability to continue as a
going concern after auditing the company's financial statements
for the year Dec. 31, 2005.  George Brenner pointed to the
company's recurring losses, negative cash flow from operations,
and net working capital deficiency.

Cala Corporation, fka Magnolia Foods, Inc.'s, sole industry
segment was the business of owning, operating, licensing and
joint venturing restaurants.  The company sublet its San Ramon
location for the monthly lease cost of $6,000 per month for nine
years plus $1,500 per month for 60 months.  The company is liable
for the primary lease in the San Ramon location until the lease
expires which is in 9 years.


CARBIZ INC: October 31 Stockholders' Deficiency Rises to $3.4 Mil.
------------------------------------------------------------------
Carbiz Inc. disclosed that stockholders' deficit as of Oct. 31,
2006, increased to $3,410,376 from $2,403,162 as of Jan. 31, 2006.

The October 31 stockholders' deficit resulted from total assets of
$1,024,768 and total liabilities of $4,435,144.

As of Oct. 31, 2006, the company had negative working capital with
$751,817 in total current assets available to pay $4,074,183 in
total current liabilities.

For the three months ended Oct. 31, 2006, the company reported
a $3,295,956 net loss on $804,241 of total sales, compared with a
$344,776 net loss on $1,029,489 of total sales for the three
months ended Oct. 31, 2005.   

                    Other Financial High Lights

As of Jan. 31, 2006, and Oct. 31, 2006, the company had $119,735
and $79,615, respectively, in cash and cash equivalents.  During
the nine months ended Oct. 31, 2006, the company decreased its
accounts payable and accrued liabilities by $8,835, which totaled
$1,276,367 at Oct. 31, 2006.  The company also made debt
repayments and capital lease payments totaling $239,348, which
includes $156,546 repaid through issuance of securities.  The
company has continued to rely on private placements to meet its
cash flow requirements.  Operationally, the company has not
generated the necessary revenue to cover its operating expenses.

On Oct. 17, 2006, the company issued 129,776 common shares
pursuant to the exercise of options issued to its employees at an
exercise price of CDN$.10 resulting in proceeds of $11,576 (when
converted to US$ at date of conversion).

Effective Oct. 3, 2006, approximately $1.3 million in debentures
related to the company's debenture financing which closed on
Apr. 6, 2006, were converted into 13,842,027 common shares,
14,472,753 class A common share purchase warrants and 7,236,355
class B common share purchase warrants.  Each class A common share
purchase warrant and each class B common share purchase warrant is
exercisable for one common share expiring from Oct. 6, 2009,
through April 6, 2011, at an exercise price of CDN$0.12 per common
share.  The conversion occurred as a result of the quotation of
the company's shares on the U.S. Over-The-Counter Bulletin Board
and the delisting of its shares from the TSX Venture Exchange.

In its quarterly report filed with the Securities and Exchange
Commission, the company's management noted that should the
company's operating revenues fail to increase to provide
sufficient cash flow to fund operations, the company may require
additional financing.  Based on nine month results and an
assumption of meeting business projections for the remainder of
the fiscal year, the company's current cash flow from operations
and cash on hand are sufficient to fund operations until the end
of this month.

"Should our operating revenues fail to increase to provide
sufficient cash flow to fund operations, we may require additional
financing.  Based on nine month results and an assumption of
meeting business projections for the remainder of the fiscal year,
our current cash flow from operations and our cash on hand are
sufficient to fund our operations until January 2007.  Actual
results that vary from projections may require the need for
additional cash during that period.  Our ability to arrange such
financing in the future will depend in part upon the prevailing
capital market conditions as well as our business performance.
There can be no assurance that we will be successful in our
efforts to arrange additional financing, if needed, on terms
satisfactory to us or at all.  The failure to obtain adequate
financing could result in a substantial curtailment of our
operations. If additional financing is raised by the issuance of
securities, control of Carbiz may change and/or our shareholders
may suffer significant dilution," Carl Ritter, the company's
chief executive officer, said.

A full-text copy of the company's financial report for the
quarterly period ended Oct. 31, 2006, is available for free at:

               http://researcharchives.com/t/s?17f8

                        About CarBiz Inc.

Headquartered in Toronto, Ontario, Canada, CarBiz Inc. provides
software and services for car dealers.  CarBiz's software
applications cover finance and insurance, special financing,
leasing, buy here-pay here, traffic management, and accounting.
Related services include software training and consulting,
software applications hosting, and website design.  CarBiz also
offers service contracts and extended warranties through Heritage
Warranty and car loans.  Carbiz serves more than 3,000 dealers.


CERADYNE INC: Gets $133 Million Body Armor Order from U.S. Army
---------------------------------------------------------------
Ceradyne, Inc., received a $133 million delivery order for
Enhanced Side Ballistic Inserts from the U.S. Army, Aberdeen
Proving Ground, Maryland.

The new delivery order is scheduled to be shipped beginning
April 2007 through November 2007.  The order will be shipped
against a larger indefinite delivery/indefinite quantity contract.

Dave Reed, president of North American operations, commented:
"This delivery order is the largest single order ever received by
Ceradyne.  Together with the $122.2 million in ESAPI and ESBI body
armor orders announced in November 2006, we have excellent
visibility into 2007.  Utilizing the Lexington, Kentucky facility
and the Costa Mesa and Irvine, California plants, we expect to
meet the Army's quality and delivery requirements.  We anticipate
receiving additional orders early in 2007 for delivery in 2007."

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 and consumer applications.

                           *     *     *

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.


CERADYNE INC: Gets $3.8 Million in Total Orders for HUMVEE Armor
----------------------------------------------------------------
Ceradyne, Inc., received follow-on vehicle armor component orders
for the M1152 HMMWV from AM General Corporation.  A total of
$3.8 million in orders will be delivered in 2007.

The company has received a total of $5.7 million in HUMVEE(R)
armor orders since its initial order in May 2006.

The armor were designed in the company's Wixom, Michigan, vehicle
armor prototype facility in conjunction with AM General's
development team in Livonia, Michigan.  The production armor
components will be manufactured in the company's 80,000 square-
foot Irvine, California armor facility.

Marc King, vice president of armor operations, commented: "The
continuing order flow of armor components for the HUMVEE(R)
validates our quality and on-time delivery of vehicle armor.

Mr. King added, "We are currently performing further armor
research and developing new ceramic composite armor designs for
additional HMMWV variations, as well as other military vehicles."

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 and consumer applications.

                           *     *     *

Ceradyne's $50 million revolving credit facility due 2009 carries
Standard & Poor's BB- rating.  The Company's credit rating is also
rated BB- by Standard & Poor's.


COLLINS & AIKMAN: Wants Solicitation Process of Amended Plan Fixed
------------------------------------------------------------------
Collins & Aikman Corp. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Eastern District of Michigan to enter an
order:

   (a) approving the disclosure statement to their First Amended
       Joint Plan;

   (b) fixing, subject to modification as needed,

         (i) the Voting Record Date,

        (ii) the Voting Deadline,

       (iii) deadlines for filing objections, if any, to
             confirmation of the Plan and replies to any
             objections, and

        (iv) the date for the hearing on confirmation of the
             Plan; and

   (c) approving the Solicitation Procedures and the form of
       certain Solicitation Documents to be distributed in
       connection with solicitation of the Amended Plan.

               Adequacy of the Disclosure Statement

Section 1125 of the Bankruptcy Code requires that a plan
proponent provide "adequate information" regarding a debtor's
proposed Chapter 11 plan.

Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in New York,
asserts that the Disclosure Statement contains the pertinent
information necessary for holders of claims to make an informed
decision about whether to vote to accept or reject the Plan,
including, among other things, information regarding:

   (a) the Plan;

   (b) the history of the Debtors, including certain events
       leading to the commencement of the Chapter 11 cases;

   (c) the operation of the Debtors' businesses and significant
       events during the Chapter 11 cases;

   (d) the Debtors' prepetition capital structure and
       indebtedness;

   (e) the Debtors' corporate structure;

   (f) claims asserted against the Debtors' estates and the
       procedures for the resolution of contingent, unliquidated
       and disputed claims;

   (g) the classification and treatment of claims and equity
       interests under the Plan;

   (h) certain risk factors to consider that may affect the Plan;
  
   (i) the restructuring transactions contemplated under
       the Plan;

   (j) certain federal income tax law consequences of the Plan;

   (k) the provisions governing distributions under the Plan;

   (l) the means for implementation of the Plan;

   (m) pending litigation involving the Debtors;

   (n) identification of causes of action belonging to the
       Debtors; and

   (o) settlement, release, injunctive and exculpation provisions
       of the Plan.

The Debtors submit that the Disclosure Statement contains more
than sufficient information for a hypothetical reasonable
investor to make an informed judgment about the Plan and complies
with all aspects of Section 1125.

                            Record Date

The Debtors ask the Court to exercise its authority under Rules
3017(d) and 3018(a) of the Federal Rules of Bankruptcy Procedure
to establish the date of entry of the order approving the
Disclosure Statement as the record date for determining:

   (i) the creditors that are entitled to receive Solicitation
       Documents pursuant to the Solicitation Procedures;

  (ii) the creditors entitled to vote to accept or reject the
       Plan; and

(iii) whether Claims have been properly transferred to an
       assignee pursuant to Rule 3001(e) such that the assignee
       can vote as the Holder of the Claim.

               Distribution of Solicitation Notices

Pursuant to Local Rule 3018-1, a plan proponent must distribute
certain solicitation materials within five business days after
entry of an order approving the related disclosure statement.

Given the size and complexity of the solicitation, the Debtors
ask the Court to waive Local Rule 3018-10 to allow the Debtors to
distribute the Solicitation Documents and related notices on a
date that is no more than 10 business days following entry of the
order approving the Disclosure Statement.

                          Voting Deadline

The Debtors ask the Court to exercise its authority under Rule
3017(c) to establish 5:00 p.m. prevailing Pacific Time on the
date that is 10 days before the Confirmation Hearing as the
deadline by which Holders of Claims must accept or reject the
Plan in accordance with the Solicitation Procedures.

The Debtors also ask Judge Rhodes to permit them to extend the
Voting Deadline, if necessary, without further Court order, to a
date no later than five days before the Confirmation Hearing with
notice of the extension to all creditors entitled to vote.

                        Objection Deadline

Pursuant to Bankruptcy Rule 3020(b), the Debtors ask the Court to
establish 5:00 p.m. prevailing Pacific Time on the date that is
10 days before the Confirmation Hearing as the deadline by which
objections to confirmation of the Plan, if any, must be filed and
served in accordance with the Solicitation Notice.

The Debtors request that they be permitted to file a reply, no
later than three days before the Confirmation Hearing, to any
objections to confirmation of the Plan.

                       Confirmation Hearing

The Debtors request that the Court exercise its authority under
Bankruptcy Rule 3017(c) to schedule a hearing on confirmation of
the Plan, subject to the Court's calendar, as soon as practicable
on or after 25 days from the Solicitation Distribution Date,
which hearing may be continued from time to time by the Court or
the Debtors without further notice other than adjournments
announced in open court.

                      Solicitation Procedures

To conduct an effective solicitation of votes to accept or reject
the Plan, consistent with the requirements of the Bankruptcy
Code, the Bankruptcy Rules, the Local Rules and due process, the
Debtors seek approval of the Solicitation Procedures.  

A. Duties of the Solicitation Agent

The Debtors request that Kurtzman Carson Consultants LLC be
authorized and directed to assist them in:

   (a) distributing Solicitation Documents,

   (b) receiving, tabulating and reporting on Ballots and Master
       Ballots cast to accept or reject the Plan by holders of
       claims against the Debtors,

   (c) responding to inquiries from creditors, equity interest
       holders and other parties in interest relating to the
       Disclosure Statement, the Plan, the Ballots and the
       Master Ballots, the Solicitation Procedures and all other
       Solicitation Documents and matters related thereto,

   (d) soliciting votes on the Plan, and

   (e) if necessary, contacting creditors and equity interest
       holders regarding the Plan.

B. Record Holders of the Debtors' Securities

Once the Voting Record Date is established, the Debtors and
Kurtzman will contact the registrars of the Debtors' public
securities and the applicable indenture trustees to compile and
generate lists of holders of the Debtors' Securities as of the
Voting Record Date.

C. Solicitation Documents

In accordance with Bankruptcy Rule 3017(d), the Debtors intend to
distribute the materials to holders of claims and equity
interests for purposes of soliciting their votes and providing
adequate notice of the Confirmation Hearing.

Specifically, the Debtors intend to serve all of the Solicitation
Documents on the Core Group and the 2002 List.   With respect to
certain listed entities that are not in the Core Group or on the
2002 List, the Debtors will cause to be mailed, only:

   (a) the Solicitation Notice;

   (b) appropriate Ballots and Master Ballots and applicable
       Voting Instructions;

   (c) a pre-addressed, postage pre-paid return envelope; and

   (d) a CD-Rom containing the Disclosure Statement, the
       Solicitation Procedures Order, the Solicitation Procedures
       and certain other documents that are contained in the Plan
       Supplement.

The Solicitation Notice will additionally instruct the parties
that all other Solicitation Documents can be obtained by
accessing the Debtors' Web site or by requesting a copy from the
Solicitation Agent in writing or by telephone.

To avoid duplication and reduce expenses, the Debtors propose to
make every reasonable effort to ensure that creditors and equity
interest holders who might otherwise receive multiple
solicitation packages will receive no more than one set of
Solicitation Documents and one Ballot or Master Ballot for each
class of claims for which the creditor or equity interest holder
is entitled to vote.

D. Approval of the Form of Ballots

All votes to accept or reject the Plan must be cast by using the
appropriate ballot or, in the case of Beneficial Holders of the
Debtors' Securities that are registered or otherwise held in the
name of a Nominee, the appropriate master ballot.

The Debtors will prepare and customize Ballots for all classes of
claims that the Debtors anticipate will be entitled to vote to
accept or reject the Plan in accordance with Bankruptcy Rule
3018(c).

E. Form of Solicitation Notice

To satisfy the requirements of Bankruptcy Rules 2002(b) and (d),
the Debtors intend to send a solicitation document, which will
contain, among other things:

   (a) instructions to creditors and interested parties on how
       they may view or obtain copies of the Court-approved
       Disclosure Statement, the Plan Supplement, the
       Solicitation Procedures Order, the Solicitation Procedures
       and all other materials in the Debtors' Solicitation
       Documents;

   (b) a disclosure regarding the settlement, third party
       release, exculpation and injunction language in Article
       XII of the Plan;

   (c) the Voting Record Date;

   (d) the procedures for the temporary allowance of claims;

   (e) the Voting Deadline;

   (f) the Plan Objection Deadline; and

   (g) the Confirmation Hearing date and time.

The Debtors also intend to publish the Solicitation Notice to
provide sufficient notice of the Plan Objection Deadline, the
Confirmation Hearing and other relevant deadlines to entities
that may not otherwise receive notice by mail.

F. Forms of Other Notices

i. Non-Voting Status Notices

As reflected in the Amended Plan, certain classes of claims and
equity interests under the Plan are not entitled to vote to
accept or reject the Plan because the classes:

   (a) are unimpaired within the meaning of Section 1124 or

   (b) would receive no distribution under the Plan and,
       therefore, are deemed to reject the Plan pursuant to
       Section 1126(g).

In addition, certain creditors whose claims are not classified in
accordance with Section 1123(a)(1) are not entitled to vote to
accept or reject the Plan.

The Debtors propose that, unless specifically requested, they not
be required to send Solicitation Documents to creditors and
equity holders not entitled to vote on the Plan.  In lieu of the
Solicitation Documents, the Debtors intend to send to these
creditors and equity interest holders both a Solicitation Notice
and one of these notices:

   (a) the Notice Of Non-Voting Status With Respect To
       Unimpaired Classes Deemed To Accept The Plan And
       Unclassified Classes; or

   (b) the Notice Of Non-Voting Status With Respect To
       Impaired Classes Deemed To Reject The Plan, as applicable.

ii. Causes of Action and Executory Contracts Notices

The parties listed on the Nonexclusive List of Causes of Action
and the counterparties to the Debtors' executory contracts and
unexpired leases listed on the Plan will receive only the
Solicitation Notice and one or both of these additional notices:

   (a) the Notice To Parties To Retained Causes Of Action and

   (b) the Notice To Counterparties To Executory Contracts And
       Unexpired Leases, as applicable.

If any of these parties also have claims against or equity
interests in the Debtors as of the Voting Record Date, the
parties will also receive the Solicitation Documents.

                 Voting and Tabulation Procedures

The Debtors ask the Court to approve the voting and tabulation
procedures in accordance with Section 1126(c) and Bankruptcy Rule
3018(a).

(i) Voting and General Tabulation Procedures

The Amended Plan contemplates impaired classes that will be
entitled to vote on the Plan.  The Debtors ask the Court to enter
an order providing that only holders of claims in Classes 3 to 7
are entitled to vote to accept or reject the Plan.

(ii) Master Ballot Tabulation Procedures

The Plan also contemplates that certain Beneficial Holders of
claims derived from, or based on, indentures issued by the
Debtors will be entitled to accept or reject the Plan.

The Debtors recognize that the records of the indenture trustees
for the Debtors' Indentures may reflect the brokers, dealers,
commercial banks, trust companies or other nominees through which
certain Beneficial Holders hold the relevant Indentures rather
than the Beneficial Holders themselves.

For relevant materials to be fully and properly disseminated to
the Beneficial Holders, the Debtors request that the Court order
Nominees to:

   (a) disseminate the appropriate Solicitation Documents or
       other appropriate notices to the Beneficial Holders and

   (b) cooperate fully with the Debtors with respect to the
       solicitation process.

(iii) Temporary Allowance of Claims for Voting Purposes

If an objection to a claim is pending on the Voting Record Date,
the holder of a claim will receive a copy of the Solicitation
Notice and a Notice of Non-Voting Status with Respect to Disputed
Claims, in lieu of a Ballot.

The Objected-to-Claim Notice will inform the holder that (a) an
objection to its claim is pending and (b) the holder cannot vote
absent at least one of these events taking place prior to the
Voting Deadline:

    -- an order is entered by the Bankruptcy Court, after
       notice and a hearing, temporarily allowing the Objected-
       to-Claim for voting purposes only pursuant to Bankruptcy
       Rule 3018(a);

    -- a stipulation or other agreement is executed between the
       holder of the Objected-to-Claim and the Debtors allowing
       the holder of the Objected-to-Claim to vote its Objected-
       to-Claim in an agreed upon amount; or

    -- the pending objection to the Objected-to-Claim is
       voluntarily withdrawn by the Debtors or overruled by the
       Bankruptcy Court.

If a Resolution Event occurs before the Voting Deadline, no later
than two business days after a Resolution Event, the Solicitation
Agent will distribute a Ballot and a preaddressed, postage pre-
paid envelope to the relevant holder of the Objected-to-Claim,
which must be returned to the Solicitation Agent by no later than
the Voting Deadline.

If an objection to a claim is filed by the Debtors after the
Voting Record Date, the Ballot of the holder of the Objected-to-
Claim will not be counted absent a Resolution Event taking place
on or before the Confirmation Hearing.

Nothing in the Solicitation Procedures will affect the Debtors'
right to object to any proof of claim on any other ground or for
any other purpose.

H. Returned Solicitation Packages and Notices

The Debtors seek the Court's approval for a departure from the
strict notice rule excuse from:

   (a) giving notice or providing service of any kind upon any
       entity to whom the Debtors mailed any Solicitation
       Documentation, including any notices, and received any of
       the documents returned by the United States Postal Service
       marked "undeliverable as addressed," "moved - left no
       forwarding address," "forwarding order expired" or similar
       marking, unless the Debtors have been informed in writing
       by the entity of its new address and

   (b) re-mailing the documents to those entities whose addresses
       differ from the addresses in the claims register or the
       Debtors' records as of the Voting Record Date.

If a creditor has changed its mailing address after the Petition
Date, the burden will be on the creditor or party-in-interest,
not the Debtors, to advise the Solicitation Agent of the new
address.

                           *     *     *

The Court will convene a hearing to consider the Debtors'
request, including the adequacy of the Disclosure Statement, on
Jan. 25, 2007, at 11:00 a.m.

Objections are due Jan. 18, 2007, at 4:00 p.m.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 48;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


COLLINS & AIKMAN: Inks Fifth Amendment of DIP Loan with JPMorgan
----------------------------------------------------------------
Collins & Aikman Corp. and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Eastern District
of Michigan to enter into a fifth amendment to the Amended and
Restated Revolving Credit, Term Loan, and Guaranty Agreement,
dated as of July 28, 2005, with JPMorgan Chase Bank, N.A., as
administrative agent.

Marc J. Carmel, Esq., at Kirkland & Ellis LLP, in New York states
that the Fifth Amendment is expected to provide JPMorgan, and each
of the other financial institutions, consent to the Customer
Agreement and the transactions contemplated in it.

The approval of the Fifth Amendment on an expedited basis will
also ensure that the Debtors are able to, among other things,
receive the benefits of the Customer Agreement and avoid the
risks of not having the Customer Agreement while remaining in
full compliance with the DIP Credit Agreement, Mr. Carmel says.

The Fifth Amendment is necessary to permit the Debtors to engage
in certain other transactions currently restricted by the DIP
Credit Agreement, modify provisions governing the sharing of
proceeds received by the Debtors from certain transactions and
increase the Debtors' ability to sell, dispose of and transfer
certain assets, Mr. Carmel adds.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in
cockpit modules and automotive floor and acoustic systems and is
a leading supplier of instrument panels, automotive fabric,
plastic-based trim, and convertible top systems.  The Company
has a workforce of approximately 23,000 and a network of more
than 100 technical centers, sales offices and manufacturing
sites in 17 countries throughout the world.  The Company and its
debtor-affiliates filed for chapter 11 protection on May 17,
2005 (Bankr. E.D. Mich. Case No. 05-55927).  Richard M. Cieri,
Esq., at Kirkland & Ellis LLP, represents C&A in its
restructuring.  Lazard Freres & Co., LLC, provides the Debtor
with investment banking services.  Michael S. Stammer, Esq., at
Akin Gump Strauss Hauer & Feld LLP, represents the Official
Committee of Unsecured Creditors Committee.  When the Debtors
filed for protection from their creditors, they listed
$3,196,700,000 in total assets and US$2,856,600,000 in total
debts.  (Collins & Aikman Bankruptcy News, Issue No. 48;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


COMPLETE RETREATS: Court Okays Fairfax as Panel's Forensic Advisor
------------------------------------------------------------------
The United States Bankruptcy Court for the District of Connecticut
authorized the Official Committee of Unsecured Creditors of
Complete Retreats LLC and its debtor-affiliates to retain The
Fairfax Group, as its forensic advisor, nunc pro tunc to Sept. 11,
2006.

As reported in the Troubled Company Reporter on Dec. 8, 2006,
Diana Adams, the acting U.S. Trustee for the District of  
Connecticut, notified the Court that she has no objection to the
retention of The Fairfax Group as forensic advisor to the
Committee.

Committee Chair Joel S. Lawson III related that the Committee
formed a subcommittee of its members to interview and evaluate
candidates qualified to perform the type of forensic accounting
and investigatory due diligence services required in the Debtors'
cases.  After soliciting qualification materials from, and
rigorously interviewing various candidates, the subcommittee
recommended the retention of Fairfax as the Committee's forensic
advisor.

Mr. Lawson noted that Fairfax employed and has working
professional relationships with some of the world's leading
experts in compliance, investigations and security.  Fairfax's
past engagements have included rendering service in the areas of
corporate internal investigations; due diligence; asset tracing
and anti-money laundering; electronic evidence-gathering and
preservation; witness identification and interview; documentary
evidence gathering and research of corporate and individual
histories.

Fairfax is expected to, among others, perform forensic accounting
and investigatory due diligence concerning the Debtors; the
Debtors' businesses and operations; and any individuals or
entities with whom the Debtors, their officers, directors,
shareholders, agents and employees, have done business or may
decide to do business.  Fairfax is also expected to analyze all
relevant information from the time of the Debtors' formation
through and including the present.

The Committee reserves its rights to augment or authenticate the
work of XRoads Solutions Group, or any other professionals
conducting forensic analysis, where it deems that the additional
work is necessary to maximize the recovery of unsecured
creditors.

The Debtors will pay Fairfax for its services according to its
customary hourly rates.  The hourly rates charged by Fairfax
professionals differ based on, among other things, the individual
professional's experience.  The customary rates for Fairfax
personnel in year 2006 range from $275 to $400 per hour.

Fairfax will provide a phased budget, which will contain explicit
fee limitations for each phase of its investigation.

The Debtors will reimburse Fairfax's out-of-pocket expenses
reasonably incurred in connection with services it renders to the
Committee.

Michael J. Hershman, president of the Fairfax Group, assures the
Court that the firm has no connection with the Debtors, their
creditors, the U.S. Trustee or any other party in interest in the
Chapter 11 cases.

Mr. Hershman asserts that Fairfax is a "disinterested person" as
that term is defined in Section 101(14) of the Bankruptcy Code,
and does not hold or represent any interest adverse to the
Debtors' estates with respect to the matters for which it is to
be retained.

                     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.  

The Debtors' exclusive period to file a plan expires on
February 18, 2007.  They have until April 19, 2007, to solicit
acceptance to that plan.  (Complete Retreats Bankruptcy News,
Issue No. 18; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


COMPLETE RETREATS: Wants to Sell 3 Real Properties for $3.14 Mil.
-----------------------------------------------------------------
Complete Retreats LLC and its debtor-affiliates seek permission
from the U.S. Bankruptcy Court for the District of Connecticut to
sell three real properties for $3,140,000, free and clear of all
liens, claims, and encumbrances:

    Property Address            Proposed Buyer    Purchase Price
    ----------------            --------------    --------------
    7447 Royal Street East      Ladd Tanner         $1,300,000
    Unit 351
    Park City, Utah

    4165 Kamalani Lane          Gary P. Siracuse     1,290,000
    Princeville, Hawaii

    14 West Cottage Circle      Thomas Gibbons         550,000
    Bluffton, South Carolina

The Park City Property includes two 1,475-square foot houses.
Each of the houses has two bedrooms and two bathrooms.

The Princeville Property includes a nearly 2,500-square foot
house with three bedrooms, three and a half bathrooms, and a
nearly 500-square foot garage.  The Princeville Property is
located on the Princeville Mallon Golf Course.

The Bluffton Property, which includes a 2,131-square foot house
with four bedrooms and four bathrooms, is located in a community
resort development known as the Belfair Plantation.  Amenities at
the Bluffton Property and the Belfair Plantation include views of
a golf course and the Colleton River, a health and fitness
center, an indoor lap pool, an outdoor pool, tennis courts, a
basketball court, a volleyball court, and an athletic field.

Jeffrey K. Daman, Esq., at Dechert LLP, in Hartford, Connecticut,
relates that CIT Capital USA, Inc., the Debtors' exclusive real
estate advisor and disposition agent, and CIT's retained local
estate brokers engaged in substantial and thorough campaigns to
market the Properties.  Through CIT's and the brokers' efforts,
the Debtors received several offers for each of the Properties.
The Debtors have determined that the offers of Messrs. Tanner,
Siracuse, and Gibbons are the best and the highest.

Consequently, the Debtors entered into separate Sale Agreements
with Messrs. Tanner, Siracuse, and Gibbons.  Pursuant to their
Sale Agreements with the Debtors, Mr. Tanner paid the Debtors a
$50,000 deposit, Mr. Siracuse will provide the Debtors with a
$75,000 deposit, and Mr. Gibbons will pay the Debtors a $55,000
deposit.  The Proposed Buyers will pay the remaining balance at
the closing of each Sale.

The sale of the Park City Property must close by Jan. 5, 2007,
that of the Princeville Property must close by Dec. 22, 2006, and
that of the Bluffton Property must close by Dec. 19, 2006, Mr.
Daman informs the Court.

The Sale Agreements were negotiated at arm's length and in good
faith, Mr. Daman maintains.  The Debtors and the Proposed Buyers
are not related in any way.

The Debtors propose to pay CIT Transaction Fees for its efforts
in marketing the Properties.  From the Transaction Fees, CIT will
pay these amounts for the local brokers' services:

                 Transaction
    Property         Fee       Broker                 Broker's Fee
    --------     -----------   ------                 ------------
    Park City      $91,000     Jess Reid Real Estate     $65,000
    Princeville     90,300     Century 21 All Islands     64,500
    Bluffton        38,500     Corabett Thomas Realty     33,000

The Debtors believe that the proposed sale to the Buyers will
facilitate a quick and efficient disposition of the Properties
for the benefit of their estates.  The Properties are not popular
among the Debtors' members and are not necessary for the Debtors'
operations, Mr. Daman asserts.

Moreover, the Debtors believe that there would be no benefit to
conducting any formal auction or a further bidding process for
the Properties.  Mr. Daman contends that any auction or further
bidding process would only generate increased administrative
costs and cause an unwarranted delay of the Sales.

The only party currently holding a lien on the Properties is
Ableco Finance LLC, the Debtors' postpetition lender, Mr. Daman
discloses.  The Debtors believe that Ableco has consented, or
will consent, to the Proposed Sales.

The proceeds from the Sales will be used to fund the Debtors'
operations and, eventually, to facilitate and enhance the
Debtors' ability to confirm a potential plan of reorganization,
Mr. Daman relates.  Accordingly, the Debtors had asked the Court
to exempt the Sales from transfer taxes under Section 1146(a) of
the Bankruptcy Code.

In addition, because the proposed Sales inure to the benefit of
their estates, creditors, and other parties-in-interest, and are
not to the detriment of any party, the Debtors had asked the Court
to waive the provision in Rule 6004(g) of the Federal Rules of
Bankruptcy Procedure.  Any order approving the Debtors' request
should be effective immediately, Mr. Daman asserts.

                     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.  

The Debtors' exclusive period to file a plan expires on
February 18, 2007.  They have until April 19, 2007, to solicit
acceptance to that plan.  (Complete Retreats Bankruptcy News,
Issue No. 18; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


CWALT INC: Fitch Puts Low-B Ratings on $5.4 Million Class Certs.
----------------------------------------------------------------
Fitch rates CWALT, Inc.'s Mortgage Pass-Through Certificates,
Alternative Loan Trust 2006-HY13 as:

Group 1

    -- $230.9 million classes 1-A-1, 1-A-2, 1-A-3, and A-R (senior
       certificates) 'AAA';

    -- $5.5 million class I-M 'AA';

    -- $2.9 million class I-B-1 'A';

    -- $1.7 million class I-B-2 'BBB';

    -- $1.7 million class I-B-3 'BB';

    -- $1.3 million class I-B-4 'B'.

Aggregate Loan Group 2

    -- $619.2 million classes 2-A-1 through 2-A-7, 2-A-2X, 2-A-4X,
       2-A-5X, 2-A-6X, 2-A-X, 3-A-1 through 3-A-7, 3-A-2X, 3-A-4X,
       3-A-5X, 3-A-6X, 3-A-7X, 4-A-1 through 4-A-6, 4-A-3X, 4-A-
       4X, 4-A-5X, and 4-A-6X (senior certificates) 'AAA';

    -- $17.1 million class II-M 'AA';

    -- $3.8 million class II-B-1 'A';

    -- $2.5 million class II-B-2 'BBB';

    -- $1.2 million class II-B-3 'BB';

    -- $1.2 million class II-B-4 'B'.

The 'AAA' rating on the Group 1 senior certificates reflects the
5.75% subordination provided by the 2.25% class I-M, 1.20% class
I-B-1, 0.70% class I-B-2, 0.70% privately offered class I-B-3,
0.55% privately offered class I-B-4, and 0.35% privately offered
class I-B-5.  The class I-B-5 is not rated by Fitch.

The 'AAA' rating on the Aggregate Loan Group 2 senior certificates
reflects the 4.25% subordination provided by the 2.65% class II-M,
0.60% class II-B-1, 0.40% class II-B-2, 0.20% privately offered
class II-B-3, 0.20% privately offered class II-B-4, and 0.20%
privately offered class II-B-5.  The class II-B-5 is not rated by
Fitch.

Fitch believes the above credit enhancement for each respective
loan group 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. Countrywide Servicing is a direct wholly owned subsidiary
of Countrywide Home Loans, Inc.

The mortgage pool consists of four separate loan groups. Groups 2,
3 and 4 are crossed-collateralized in terms of subordinate credit
enhancement.

Loan Group 1 consists primarily of 30-year conventional, fully
amortizing mortgage loans totaling $245,013,285 as of the cut-off
date, Dec. 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 original-loan-
to-value (OLTV) of 72.12%. The weighted average FICO credit score
is approximately 718. Cash-out refinance loans represent 37.62% of
the mortgage pool and second homes 7.45%.  The average loan
balance is $756,214. The states that represent the largest portion
of mortgage loans are California (69.64%) and Florida (7.41%).  
All other states represent less than 5% of the cut-off date pool
balance.

Loan Group 2 consists primarily of 30-year conventional, fully
amortizing mortgage loans totaling $100,407,408 as of the cut-off
date, Dec. 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 72.68%.
The weighted average FICO credit score is approximately 744.  
Cash-out refinance loans represent 26.97% of the mortgage pool and
second homes 11.57%. The average loan balance is $687,722.  The
states that represent the largest portion of mortgage loans are
California (62.59%) and Florida (5.25%).  All other states
represent less than 5% of the cut-off date pool balance.

Loan Group 3 consists primarily of 30-year conventional, fully
amortizing mortgage loans totaling $200,855,212 as of the cut-off
date, Dec. 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 73.20%.
The weighted average FICO credit score is approximately 741.  
Cash-out refinance loans represent 20.92% of the mortgage pool and
second homes 4.37%.  The average loan balance is $625,717.  The
states that represent the largest portion of mortgage loans are
California (51.54%) and Washington (7.50%).  All other states
represent less than 5% of the cut-off date pool balance.

Loan Group 4 consists of 30-year conventional, fully amortizing
mortgage loans totaling $345,498,657 as of the cut-off date,
Dec. 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 74.74%.
The weighted average FICO credit score is approximately 742.  
Cash-out refinance loans represent 21.70% of the mortgage pool and
second homes 5.72%.  The average loan balance is $622,520.  The
states that represent the largest portion of mortgage loans are
California (56.06%) and Florida (5.18%).  All other states
represent less than 5% of the cut-off date pool balance.

CWALT 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.


CWMBS INC: Fitch Rates $2.082 Million Class B-3 Certs. at BB
------------------------------------------------------------
Fitch rates CWMBS, Inc.'s mortgage pass-through certificates, CHL
Mortgage Pass-Through Trust 2006-20 as:

    -- $1,001,441,979 classes 1-A-1 through 1-A-37, X, PO and A-R
       senior certificates 'AAA';

    -- $24,984,000 class M 'AA';

    -- $6,245,000 class B-1 'A';

    -- $3,123,000 class B-2 'BBB';

    -- $2,082,000 class B-3 'BB';

    -- $1,561,000 class B-4 'B'.

The 'AAA' rating on the senior certificates reflects the 3.80%
subordination provided by the 2.40% class M, 0.60% class B-1,
0.30% class B-2, 0.20% privately offered class B-3, 0.15%
privately offered class B-4 and 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 above 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 certificates represent an ownership interest in a group of
primarily 30-year conventional, fixed-rate, fully amortizing
mortgage loans.  The pool consists of mortgage loans totaling
$1,041,000,000 as of the cut-off date (Dec. 1, 2006), secured by
first liens on one-to four- family residential properties. The
average loan balance is $631,381.  The mortgage pool, as of Dec.
1, 2006, demonstrates an approximate weighted-average original
loan-to-value ratio (OLTV) of 73.05%.  The weighted average FICO
credit score is approximately 747.  Cash-out refinance loans
represent 26.94% of the mortgage pool and second homes 5.70%.  The
states that represent the largest portion of mortgage loans are
California (36.59%) and Virginia (6.19%).  All other states
represent less than 5% of the pool as of Dec. 1, 2006.

The depositor will also deposit approximately $226,517,892 into a
pre-funding account on the closing date.  The amounts in the pre-
funding account will be used to purchase supplemental mortgage
loans after the closing date and on or prior to Jan. 31, 2007.

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.


DELPHI CORP: Moody's Rates $2.49 Bil. 2nd Priority Loan at Ba3
--------------------------------------------------------------
Moody's Investors Service has assigned ratings to Delphi
Corporation's debtor-in-possession refinancing; Ba1 on the 1st
priority tranche, and Ba3 on the 2nd priority term loan.

The ratings are on a point-in-time basis, will not be monitored
going forward, and as a result, do not have an assigned outlook.  

The ratings incorporate Delphi's significantly improved prospects
for emergence from bankruptcy as well as solid collateral coverage
provided by the combination of super-priority liens and the extent
and value of assets pledged.  Several developments are behind the
increased probability of emergence.  Among these are the progress
Delphi has achieved to date in lowering its domestic cost
structure, the establishment of an agreed framework for the
transformation of the company between Delphi and General Motors
Corporation, and the conditional undertaking of investors to
infuse substantial equity which would facilitate the company's
exit from Chapter 11.  While progress has been made on many
fronts, certain substantive details must still be agreed, and,
importantly, an agreement with Delphi's unions on multiple aspects
of an intricate transaction must be reached before court approval
for emergence in accordance with the announced framework could be
requested.  The refinancing is not conditional upon a successful
conclusion between those parties.  The ratings further consider
the ongoing weak performance of Delphi's domestic subsidiaries,
continuing exposure to developments at GM and other N. American
OEMs, and a challenging automotive market anticipated in 2007.

Ratings assigned on a point-in-time basis:

Delphi Corporation as a Debtor-in-Possession

First Priority Revolving Credit Facility for $1.75 billion, Ba1

First Priority Term Loan for $0.25 billion, Ba1

Second Priority Term Loan for $2.496 billion, Ba3

The new facilities will replace Delphi's existing debtor-in-
possession $1.75 billion revolving credit and $0.25 billion term
loan (collectively the 1st priority tranche), and will refinance
roughly $2.5 billion of pre-petition secured bank debt that had
received adequate protection under earlier bankruptcy court
rulings and was kept current on interest.  The new transactions,
which are being done on a best efforts basis, would create
significant savings for Delphi while it remains in bankruptcy.  
Should the transactions not be fully subscribed, existing
obligations and terms would remain in place.  The new facilities
have a tenor of December 31, 2007 compared to an existing maturity
date of October 8, 2007 on the current revolving credit and term
loan.

The DIP facilities will be guaranteed by substantially all of
Delphi's direct and indirect domestic subsidiaries that filed for
Chapter 11 protection.  All of the 1st priority tranche must fit
under a borrowing base which will consist of eligible receivables
and inventory, a percentage of the net orderly liquidation value
of certain machinery & equipment, and a percentage of the fair
market value of certain real estate.  GM receivables are subject
to a concentration limit.  Similarly, the component of the
borrowing base from fixed assets will be limited to 30% of total
availability.  Generally, the liens are entitled to a
superpriority claim status; include first priority interests in
all unencumbered property of the borrower/guarantors at the time
of its bankruptcy filing as well as senior liens on assets of the
obligors that were subject to liens of pre-petition secured bank
credit facilities.  Notably, this includes 65% of the stock of
first-tier foreign subsidiaries and intercompany notes held by
Delphi.  Delphi's profitable international subsidiaries are not
part of the bankruptcy proceedings and are not guarantors under
the DIP facilities.

Moody's assessment of risk for DIP facilities addresses two
factors.  The first is the probability of a company successfully
reorganizing and emerging from bankruptcy with DIP indebtedness
being paid in full.  The second, should reorganization be
unsuccessful, is the extent of coverage provided to DIP lenders by
the liquidation value and character of their collateral. Moody's
notes that, while it is now more probable that Delphi will emerge
from bankruptcy, and it has already obtained agreements which have
and will significantly lower its ongoing domestic wage and benefit
expense, incremental improvements and further agreements between
Delphi, GM and the UAW will be required.  These are necessary to
establish a foundation to achieve a sustainable and viable
business model and for Delphi to avail the equity financing
offered by more than one consortium of investors.

The ratings consider the increased likelihood that Delphi will
emerge from bankruptcy with full repayment of these facilities.
Moody's has assessed Delphi's progress on several principal
issues.  Among these are establishing a competitive hourly wage
and benefit structure in its U.S. manufacturing operations,
lowering its corporate overheads, resolving legacy wage and
benefit issues with GM without jeopardizing commercial
arrangements on attractive business contracts, rationalizing its
portfolio of business units to focus on core strengths and exiting
less profitable segments, and addressing its under-funded domestic
pension obligations.  Several attrition and buy-out programs have
been successfully negotiated in 2006 between Delphi, GM, the UAW
and the IUE-CWA which have already, and will increasingly going
forward, significantly lower the company's cost structure (e.g.
approximately 20,100 U.S. hourly employees have elected to
participate in the programs out of a total of roughly 29,300 who
were eligible to participate).

Notably, Delphi has continued to win new business awards.  More
recently, Delphi has executed a Plan Framework Agreement involving
GM and certain prospective investors and has sought bankruptcy
court approval of an Equity Purchase Commitment.  The PFA
establishes an understanding on how remaining issues involving GM
and Delphi's unions can be resolved but will require subsequent
agreements on many details among multiple affected parties.  In
order for the plans to proceed in accordance with the EPC and PFA,
Delphi will have to deliver a business plan capable of generating
$2.4 billion of EBITDA.  Should everything evolve according to
these plans, Delphi could have balance sheet debt at emergence
sometime during 2007 (including under-funded pension obligations
which could be reduced by GM's assumption of certain net pension
liabilities) of circa $8 billion (any use of the DIP's revolving
credit facility would need to be added to that total).  
Conceptually, this would imply debt/EBITDA multiples to facilitate
emergence of under 2 times for the commitments involved in the new
DIP facilities and less than 4 times for the total of pro forma
balance sheet debt.

"The ratings reflect substantial and cumulative progress on many
fronts achieved through these and earlier agreements.  They also
recognize that further undertakings with Delphi's labor unions and
GM must be reached in a relatively short period of time.  The
ratings continue to consider GM's financial condition and market
position as these factors affect concentration concerns in
Delphi's working capital and collateral valuations of its fixed
assets and business units" said Moody's analyst, Ed Wiest.  For
the first nine months of 2006, GM accounted for 57.6% of Delphi's
domestic revenues (45% on a global basis for the first half of
2006).

The Ba1 ratings on the first tranche facilities flow from their
priority claim on the collateral package and the benefits of a
monitored borrowing base structure which provides solid coverage
from Delphi's more liquid assets.  Currently, the borrowing base
accommodates access to the full amount of the commitments and
produces more than adequate liquidity.  While seasonal patterns
will affect the volume of accounts receivable, generally,
borrowing base availability attributable to defined eligible
accounts receivable will represent around 45% of the $2 billion in
commitments.  Eligible inventory amounts will represent roughly
another 35%.  Third party appraisals have been updated to
establish net orderly liquidation values of inventory.  In
liquidation, the first priority revolving credit facility and term
loan would be paid ratably.  As a result, the ratings for the
revolving credit and term loan are identical.

The Ba3 rating on the 2nd tranche term loan is driven by its lower
priority claim, its greater dependence in liquidation scenarios to
less liquid assets whose values are more subject to developments
at GM, and the ability of customers to exercise pre-petition set-
off rights against post-petition amounts due Delphi.  Principally,
amounts eligible for set-off in accordance with the Debtor's
existing DIP financing order represent warranty claims, rank
behind the security interests of the first tranche, but ahead of
the 2nd priority term loan.  On a consolidated basis at June 30,
2006, Delphi had recorded warranty liabilities of some $340
million.  In aggregate, set-off rights are estimated to be up to
roughly $1.15 billion.  But, the maximum amount the largest
claimant may set-off in accordance with Delphi's existing DIP
financing order is restricted to $35 million a month.  The final
amount of these set-off rights is subject to further negotiation
and would be dealt with at a prospective end of the bankruptcy
case.  Consequently, recovery rates in liquidation scenarios on
the 2nd tranche will also be impacted by amounts utilized under
the 1st tranche, which will be correlated to Delphi's level of
free cash flow while it remains in Chapter 11, and the extent of
these set-off rights.

Delphi Corporation, headquartered in Troy, MI, is one of the
world's largest suppliers of automotive components and had annual
revenues of approximately $27 billion in 2005.


DELTA AIR: Official Committee Taps Gordon Bethune as Consultant
---------------------------------------------------------------
The Official Committee of Unsecured Creditors of Delta Air Lines,
Inc., and its debtor-affiliates seeks the U.S. Bankruptcy Court
for the Southern District of New York's authority to retain Gordon
Bethune/gb-1 partners, as airline industry expert and consultant,
effective as of December 20, 2006, pursuant to an engagement
letter dated on the same date.

Mr. Bethune is currently the chairman of the board of Aloha
Airgroup, the parent company of Aloha Airlines.  He was chief
executive officer of Continental Airlines from 1994 until his
retirement at the end of 2004.  From 1996 until his retirement,
Mr. Bethune also served as chairman of the board at Continental
Airlines.  Mr. Bethune currently serves on the boards of
Honeywell, Sprint Nextel, Prudential Financial and the Wills
Group.  Prior to joining Continental Airlines, Mr. Bethune was
vice president and general manager of the Boeing Commercial
Airplane Group's Renton Division where he oversaw the manufacture
of Boeing's 737 and 757 airplanes.  Mr. Bethune began his career
with Boeing in 1988, and also served as the company's president
and general manager of the customer service division.

The Creditors Committee tells the Court that it has a pressing
need to retain an airline industry expert and consultant with
broad experience as a senior executive of a major international
carrier in order to consult with and advise it in analyzing and
assessing any:

   (a) merger, acquisition, or combination transaction that may
       be proposed by any party with respect the Debtors'
       business, including the US Airways Group, Inc.'s merger
       bid for Delta Air Lines, Inc.; and

   (b) plan of reorganization proposed for Delta, including
       Delta's previously reported Plan of Reorganization.

The Creditors Committee believes that Mr. Bethune's experience
and knowledge is critical to properly assess the various issues
in making decisions with respect to emergence of strategies for
the Debtors' estates.

The Creditors Committee assures the Court that it has carefully
tailored Mr. Bethune's scope and compensation so that:

   (i) his services will not be duplicative of the work performed
       by any other professionals that it retained in the
       Debtors' Chapter 11 cases; and

  (ii) the Debtors' estates do not incur unnecessary costs as a
       result of Mr. Bethune's retention.

As industry expert and consultant, Mr. Bethune will:

   (a) consult with and advise the Creditors' Committee in
       reviewing, analyzing and testing the assumptions behind
       any transaction proposal or plan of reorganization;

   (b) review and provide recommendations as to various strategic
       alternatives to any transaction proposal or plan of
       reorganization, and advise the Creditors Committee as to
       which strategic alternative would likely produce the
       maximum value for the Debtors' estates;

   (c) consult with and advise the Creditors Committee in
       evaluating the strengths and weaknesses of any transaction
       proposal or plan of reorganization and its likely effects
       on the Debtors' employees, management, organizational
       structure and organizational capabilities, and provide
       recommendations for improvement where applicable; and

   (d) provide expert advice and testimony, if required,
       regarding matters related any transaction proposal or plan
       of reorganization, including its feasibility and the
       likely effects on the Debtors' employees, management,
       organizational structure and organizational capabilities.

Mr. Bethune will be paid as industry expert and consultant:

    -- a $250,000 consulting fee for providing the Creditors'
       Committee with 10 full days, or the equivalent thereof in
       partial days, of consulting services; and

    -- upon completion of the initial consulting period, a
       further consulting fee of $250,000 for every 10 full
       days, or the equivalent thereof in partial days, of
       consulting services to the Creditors Committee.

The Creditor Committee will seek either the Debtors' consent or
the Court's authority to extend Mr. Bethune's retention prior to
requesting Mr. Bethune to provide ongoing consulting services,
which exceed $1,000,000 in consulting fees, in aggregate.

Mr. Bethune will also be paid a $250,000 retainer fee, which will
be credited against the consulting fees due and payable to
Mr. Bethune in connection with the Initial Consulting Period.

Mr. Bethune will be entitled to reimbursement of all its out-of-
pocket expenses.

Mr. Bethune has not received compensation from the Debtors or any
party-in-interest in connection with the Debtors' Chapter 11
cases.

Mr. Bethune attests that he does not hold or represent any
interest adverse to the Debtors, their estates or the Creditors
Committee.


                       About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines
-- http://www.delta.com/-- is the world's second-largest airline      
in terms of passengers carried and the leading U.S. carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The Company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone Group
L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DELTA AIR: Can Amend and Assume SAP Software License Pact
---------------------------------------------------------
Delta Air Lines, Inc., and its debtor-affiliates obtained
authority from the U.S. Bankruptcy Court for the Southern District
of New York's authority to assume the Software License Agreement
with SAP America, Inc., as amended.

As reported in the Troubled Company reporter on Dec. 26, 2006,
Delta Air and SAP America were parties to a Software End-User
License Agreement dated September 24, 1999, pursuant to which the
Debtors licensed from SAP a variety of software applications for
use throughout the their logistics, supply and accounting systems.

Among other things, the Debtors use SAP software for advanced
planning and optimization work relating to their supply network,
for business-to-business supply procurement and for spare parts
management.

The Debtors pay a single yearly maintenance fee for the
continuing use of the software applications.

Before December 11, 2006, the annual maintenance fee was
$3,740,000 per year, subject to a 2% maintenance increase in 2007
and a 4% increase in 2008 for extended maintenance.

On December 11, 2006, the Debtors and SAP agreed that the yearly
maintenance fee that the Debtors will pay for the use of SAP
software applications is reduced from $3,740,000 to $2,732,023.
However, the fee will remain subject to the same scheduled
increases of 2% in 2007 and 4% in 2008.

After 2009, SAP is entitled to adjust the maintenance fee to
conform to prevailing market rates.

As part of the comprehensive settlement, SAP waives any claim
against the Debtors for prepetition defaults under the Software
Agreement, a Professional Services Agreement dated September 30,
1999 between Delta and SAP, and various Statements of Work
issued, excluding claims for unauthorized use or disclosure of
SAP proprietary information.

The Debtors owe SAP approximately $1,925 in consulting fees for
prepetition services performed by SAP under the Waived
Agreements.  SAP has filed Claim Nos. 485, 489 and 1763.

Timothy E. Graulich, Esq., at Davis Polk & Wardwell, in New York,
contends that if the Debtors' assumption of the Software
Agreement is authorized by the Court, each Claim will be deemed
withdrawn with prejudice.

Headquartered in Atlanta, Georgia, Delta Air Lines
-- http://www.delta.com/-- is the world's second-largest airline      
in terms of passengers carried and the leading U.S. carrier across
the Atlantic, offering daily flights to 502 destinations in 88
countries on Delta, Song, Delta Shuttle, the Delta Connection
carriers and its worldwide partners.  The Company and 18
affiliates filed for chapter 11 protection on Sept. 14, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-17923).  Marshall S. Huebner,
Esq., at Davis Polk & Wardwell, represents the Debtors in their
restructuring efforts.  Timothy R. Coleman at The Blackstone Group
L.P. provides the Debtors with financial advice.  Daniel H.
Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss
Hauer & Feld LLP, provide the Official Committee of Unsecured
Creditors with legal advice.  John McKenna, Jr., at Houlihan Lokey
Howard & Zukin Capital and James S. Feltman at Mesirow Financial
Consulting, LLC, serve as the Committee's financial advisors.  As
of June 30, 2005, the Company's balance sheet showed $21.5 billion
in assets and $28.5 billion in liabilities. (Delta Air Lines
Bankruptcy News, Issue No. 54; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DURA AUTOMOTIVE: Trustee Appoints HSBC Bank to Creditors' Panel
---------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
has added HSBC Bank USA, National Association, to the Official
Committee of Unsecured Creditors in DURA Automotive Systems, Inc.
and its debtor affiliates' Chapter 11 cases.

The Creditors Committee now comprises:

     (1) Wilfrid Aubrey LLC
         Attn: Nicholas W. Walsh
         100 William Street
         Suite 1850
         New York, NY 10038
         Phone: 212-675-4906
         Fax: 212-675-3626

     (2) BNY Trust Company Midwest
         Attn: Robert H. Major
         6525 W. Campus Oval
         New Albany, OH 43054
         Phone: 614-775-5278
         Fax:614-775-5636

     (3) US Bank National Association
         Attn: James E. Murphy
         100 Wall Street
         Suite 1600
         New York, NY 10005
         Phone: 212-361-6174
         Fax: 212-514-6841

     (4) International Union, UAW
         Attn: Niraj Ganatra, Esq.
         8000 East Jefferson Avenue
         Detroit, MI 48214
         Phone: 313-926-5216
         Fax: 313-926-5240

     (5) Pension Benefit Guaranty Corporation
         Attn: William McCarron, Jr.
         1200 K Street N.W.
         Washington, D.C. 20005
         Phone: 202-326-4000, ex. 3471
         Fax: 202-326-4112

     (6) Johnson Electric N.A., Inc.
         Attn: Douglas G. Eberle
         47660 Halyard Drive
         Plymouth, MI 48170
         Phone: 734-392-5308
         Fax: 734-392-5388

     (7) Thompson I.G., LLC
         Attn: Christine Maria DeSonia
         3196 Thompson Rd.
         Fenton, MI 48430
         Phone: 810-629-9558
         Fax: 810-629-8342

     (8) HSBC Bank USA, National Association
         Attn: Robert A. Conrad
         452 Fifth Avenue
         New York, NY 10018
         Phone: 212-525-1314
         Fax: 212-525-1300

Rochester Hills, Mich.-based DURA Automotive Systems, Inc.
(Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent  
designer and manufacturer of driver control systems, seating
control systems, glass systems, engineered assemblies, structural
door modules and exterior trim systems for the global automotive
industry.  The company is also a supplier of similar products to
the recreation vehicle and specialty vehicle industries.  DURA
sells its automotive products to North American, Japanese and
European original equipment manufacturers and other automotive
suppliers.

The Debtors filed for chapter 11 petition on October 30, 2006
(Bankr. District of Delaware Case No. 06-11202).  Richard M.
Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq.,
and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead
counsel for the Debtors' bankruptcy proceedings.  Mark D. Collins,
Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of
Richards Layton & Finger, P.A. Attorneys are the Debtors'
co-counsel.  Baker & McKenzie acts as the Debtors' special
counsel.  Togut, Segal & Segal LLP is the Debtors' conflicts
counsel.  Miller Buckfire & Co., LLC is the Debtors' investment
banker.  Glass & Associates Inc., gives financial advice to the
Debtor.  Kurtzman Carson Consultants LLC handles the notice,
claims and balloting for the Debtors and Brunswick Group LLC acts
as their Corporate Communications Consultants for the Debtors.  As
of July 2, 2006, the Debtor had $1,993,178,000 in total assets and
$1,730,758,000 in total liabilities.  (Dura Automotive Bankruptcy
News, Issue No. 5; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


EASTMAN KODAK: Inks Agreements with Sony; Ends Patent Dispute
-------------------------------------------------------------
Eastman Kodak Co. has entered a cross-licensing agreement with
Sony Corp., ending a long-standing patent dispute over digital-
camera inventions since 1987, The Associated Press reports.

According to the source, Eastman Kodak also signed a cross-license
deal with Sony Ericsson Mobile Communications AB, a joint venture
of Sweden's LM Ericsson and Sony.

AP says that the financial terms of the contracts were not
revealed but the deals were royalty bearing to Kodak.

Kodak spokesman David Lanzillo told AP that ending the patent
litigation and entering into cross-license agreement would allow
each company broad access to each other's patent portfolio.

                          Patent Dispute

AP relates that in March 2004, Kodak filed a lawsuit against
Tokyo-based Sony and two U.S. subsidiaries, Sony Corp. of America
and Sony Electronics Inc., alleging that Sony infringed on 10
patents for digital camera inventions issued from 1987 to 2003
including digital and video tools such as image compression and
digital storage.

Three weeks later, Sony countersued Kodak claiming that Kodak
violated 10 patents covering digital camera features, from an
indicator that displays the number of pictures taken to an
electronic shutter with adjustable speeds, AP adds.

                      About Eastman Kodak

Headquartered in Rochester, New York, Eastman Kodak Co. --
http://www.kodak.com/-- develops, manufactures, and markets  
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 Nov. 9, 2006,
Moody's Investors Service placed Eastman Kodak Company's B1
Corporate Family Rating on review for a possible downgrade.
Moody's will continue to focus on the company's potential sale
of the Kodak Health Group as well as the fundamental operating
performance of the company.  Moody's commented that if the sale
of KHG was not pending, Moody's would expect to confirm the
company's B1 rating with a negative outlook.

The company intends to announce the outcome of the KHG strategic
review by calendar year end 2006.

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.


ENTERGY NEW ORLEANS: Court OKs Stipulation with Bank of NY, et al.
------------------------------------------------------------------
The Honorable Jerry A. Brown of the U.S. Bankruptcy Court for the
Eastern District of Louisiana approved the Stipulation among
Entergy New Orleans, Inc., Entergy Corp., Financial Guaranty
Insurance Company, The Bank of New York, as indenture trustee, and
the Ad Hoc Committee of Bondholders with these amendments:

   (1) ENOI will pay to BNY or FGIC, an amount equal to the
       interest that has accrued on the Bonds and that is due to
       be paid from Sept. 23, 2006, through and including the
       Effective Date of the proposed Third Amended Plan of
       Reorganization;

   (2) ENOI will reimburse FGIC in an amount equal to all amounts
       paid by FGIC pursuant to the Bond Indenture and Mortgage,
       the FGIC Insurance Agreements, and the Surety Bonds during
       the Initial Accrual Period in respect of interest on the
       Insured Bonds;

   (3) ENOI will pay BNY an amount equal to all interest
       accruing on the Bonds when the amounts become due and
       payable in accordance with the Bond Indenture and
       Mortgage;

   (4) with respect to the interest that became due and payable
       on the Bonds during the period beginning on the Petition
       Date through September 23, 2006, if the Plan Effective
       Date has not occurred by June 30, 2007, ENOI will
       pay to BNY -- or with respect to the portion of the
       Interest amount that FGIC paid for the Insured Bonds, to
       FGIC -- an amount equal to:

       (a) interest on the Interest Amount at the non-default
           rate specified in the Bond Indenture and Mortgage; or

       (b) the interest rate under the FGIC Insurance Agreements,
           as applicable, for the period beginning July 1, 2007,
           and ending on the earlier of June 30, 2007, or the
           date that ENOI withdraws the Third Amended Plan, or
           the Court denies confirmation of the Third Amended
           Plan; and

   (3) as of the Effective Date of the Stipulation, the parties
       agree that the value of the Bond Collateral will exceed
       the amount, as of the Petition Date, of the Bond Claims
       together with the outstanding balance of the DIP Financing
       Claim.

As reported in the Troubled Company Reporter on Dec. 28, 2006,
The Debtor delivered to the Court its Third Amended Chapter 11
Plan of Reorganization and an accompanying Third Amended
Disclosure Statement on Dec. 20, 2006.   The Third Amended Plan
will resolve outstanding issues with respect to the bondholders.

Headquartered in Baton Rouge, Louisiana, Entergy New Orleans Inc.
-- http://www.entergy-neworleans.com/-- is a wholly owned  
subsidiary of Entergy Corporation.  Entergy New Orleans provides
electric and natural gas service to approximately 190,000 electric
and 147,000 gas customers within the city of New Orleans.  Entergy
New Orleans is the smallest of Entergy Corporation's five utility
companies and represents about 7% of the consolidated revenues and
3% of its consolidated earnings in 2004.  Neither Entergy
Corporation nor any of Entergy's other utility and non-utility
subsidiaries were included in Entergy New Orleans' bankruptcy
filing.  Entergy New Orleans filed for chapter 11 protection on
Sept. 23, 2005 (Bankr. E.D. La. Case No. 05-17697).  Elizabeth J.
Futrell, Esq., and R. Partick Vance, Esq., at Jones, Walker,
Waechter, Poitevent, Carrere & Denegre, L.L.P., represent the
Debtor in its restructuring efforts.  Carey L. Menasco, Esq.,
Philip Kirkpatrick Jones, Jr., Esq., and Joseph P. Hebert, Esq.,
at Liskow & Lewis, APLC, represent the Official Committee of
Unsecured Creditors.  When the Debtor filed for protection from
its creditors, it listed total assets of $703,197,000 and total
debts of $610,421,000.  (Entergy New Orleans Bankruptcy News,
Issue No. 30; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


EUROPEAN REINSURANCE: Chapter 15 Petition Summary
-------------------------------------------------
Petitioner: Kevin McAtee

Debtor: Europaische Ruckversicherungs-Gesellschaft in Zurich
        aka European Reinsurance Company of Zurich
        Mythenquai 50/60
        CH-8002 Zurich
        Switzerland

Case No.: 06-13061

Type of Business: The company is a wholly owned subsidiary of
                  Swiss Reinsurance Company, Zurich.
                  See: http://www.rgmpool.com/

Chapter 15 Petition Date: December 21, 2006

Court: Southern District of New York (Manhattan)

Judge: Robert E. Gerber

Petitioner's Counsel: Jennifer C. DeMarco, Esq.
                      Sara M. Tapinekis, Esq.
                      Clifford Chance
                      31 West 52nd Street
                      New York, NY 10019
                      Tel: (212) 878-8569
                      Fax: (212) 878-8375

Proposed Scheme
Manager:              PRO Insurance Solutions Ltd.

Proposed Scheme
Advisor:              PricewaterhouseCoopers LLP

Proposed Independent
Adjudicator:          George Maher

Estimated Assets: More than $100 Million

Estimated Debts:  More than $100 Million


FLYI INC: Court Approves Stipulation on Kerry Skeen's Claim
-----------------------------------------------------------
On March 30, 2006, Kerry Skeen filed Claim Nos. 3877 and 4272
asserting administrative claims arising under a severance
agreement with FLYi, Inc., and Independence Air, Inc.  The
parties had entered into the Severance Agreement in connection
with Mr. Skeen's role as chief executive officer and chairman of
the Debtors' Board of Directors.

Mr. Skeen asserted claims aggregating $23,658 for reimbursement
of expenses and vacation pay alleged under the Severance
Agreement that arose after FLYi Inc., and its debtor-affiliates
filed for bankruptcy.

Mr. Skeen asserted additional claims aggregating $6,943,847 for
benefits under the Severance Agreement that allegedly arose when
the discontinuation of the Debtors' flight operations triggered a
"Change in Control" provision in the Severance Agreement.

After discussions, the parties have agreed that:

     * the $6,943,847 severance Claims against each of FLYi and
       Independence Air will be reclassified from administrative
       expense priority claims to general unsecured claims; and

     * the Objection will be withdrawn without prejudice with
       respect to the $23,658 postpetition Claims against each of
       FLYi and Independence Air.

Nothing in the Stipulation will be deemed or construed as an
admission to the validity of the Skeen Clams; a waiver of the
Debtors' or Mr. Skeen's rights with respect to the Claims; a
promise to pay any Claim; or having any effect on any other
claims filed by Mr. Skeen against the Debtors.

The U.S. Bankruptcy Court for the District of Delaware approves
the Stipulation.

Headquartered in Dulles, Virginia, FLYi Inc., aka Atlantic Coast
Airlines Holdings, Inc. -- http://www.flyi.com/-- is the parent
of Independence Air Inc., a small airline based at Washington
Dulles International Airport.  The Debtor and its six affiliates
filed for chapter 11 protection on Nov. 7, 2005 (Bankr. D. Del.
Case Nos. 05-20011 through 05-20017).  Brendan Linehan Shannon,
Esq., M. Blake Cleary, Esq., and Matthew Barry Lunn, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in their
restructuring efforts.  Brett H. Miller, Esq., at Otterbourg,
Steindler, Houston & Rosen, P.C., represents the Official
Committee of Unsecured Creditors.  As of Sept. 30, 2005, the
Debtors listed assets totaling $378,500,000 and debts totaling
$455,400,000.  (FLYi Bankruptcy News, Issue No. 31; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


FOAMEX INT'L: Court Approves FMXI's Conversion Into Delaware LLC
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorizes
Foamex International Inc. and its debtor-affiliates to take all
actions necessary to convert FMXI, Inc., from a Delaware
corporation into a Delaware limited liability company.

No obligation, liability, debt of or claim against, or security
interest or lien granted by, FMXI will be affected by its
conversion.

Following the conversion of FMXI, Inc., the Debtors will file a
notice reflecting the conversion and identifying the name of the
new limited liability company.

As reported in the Troubled Company Reporter on Dec. 19, 2006,the
Debtors sought the Court's authority for FMXI's conversion in
connection with their Second Amended Joint Plan of Reorganization.

Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor, LLP,
in Wilmington, Delaware, relates that the Debtors originally
planned to effectuate the conversion on the Effective Date of the
Second Amended Plan; however, they determined that certain savings
could be realized if the FMXI is converted before the end of 2006.

Ms. Morgan added that FMXI's conversion before year-end will
simplify the Debtors' overall tax structure and reduce their tax
burden and collective tax compliance costs.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of       
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The Company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  The
Company and eight affiliates filed for chapter 11 protection on
Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-12693).  
Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP,
represent the Debtors in their restructuring efforts.  Houlihan,
Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the
ad hoc committee of Senior Secured Noteholders.  Kenneth A. Rosen,
Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and
Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the
Official Committee of Unsecured Creditors.  As of July 3,
2005, the Debtors reported $620,826,000 in total assets and
$744,757,000 in total debts.  (Foamex International Bankruptcy
News, Issue No. 35; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FOAMEX INT'L: Foamex LP Inks Stipulation Resolving Alcazar Action
-----------------------------------------------------------------
Foamex International Inc. and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware to approve the  
Stipulation entered by Foamex L.P. and Alcazar Foam Corporation.

Foamex L.P. filed a lawsuit against Alcazar Foam in the Superior
Court of the State of California in and for the County of Los
Angeles Central District, in which the Debtor asserted certain
claims arising from Alcazar Foam.  The Lawsuit arose from Alcazar
Foam's failure to pay invoices issued by the Debtor for foam
products supplied to and received by Alcazar Foam.

The Parties have agreed to resolve the issues between them with
respect to the Lawsuit.  Accordingly, the Parties stipulate that:

   (a) Upon application to the Superior Court, judgment will be
       entered in favor of the Debtor and against Alcazar Foam,
       totaling $350,000; and

   (b) The Debtor will not seek a judgment against Alcazar Foam
       if Alcazar Foam pays it the sum of $213,637, plus interest
       at the rate of 8% per annum, from December 15, 2006,
       pursuant to this schedule:

          * $45,000 on December 15, 2006;

          * 49 monthly payments of $4,000 commencing on
            January 1, 2007; and

          * a final payment totaling $2,632, due on February 1,
            2011.

Headquartered in Linwood, Pa., Foamex International Inc. --
http://www.foamex.com/-- is the world's leading producer of       
comfort cushioning for bedding, furniture, carpet cushion and
automotive markets.  The Company also manufactures high-
performance polymers for diverse applications in the industrial,
aerospace, defense, electronics and computer industries.  The
Company and eight affiliates filed for chapter 11 protection on
Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-12693).  
Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison LLP,
represent the Debtors in their restructuring efforts.  Houlihan,
Lokey, Howard and Zukin and O'Melveny & Myers LLP are advising the
ad hoc committee of Senior Secured Noteholders.  Kenneth A. Rosen,
Esq., and Sharon L. Levine, Esq., at Lowenstein Sandler PC and
Donald J. Detweiler, Esq., at Saul Ewings, LP, represent the
Official Committee of Unsecured Creditors.  As of July 3,
2005, the Debtors reported $620,826,000 in total assets and
$744,757,000 in total debts.  (Foamex International Bankruptcy
News, Issue No. 35; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


FORD MOTOR: U.S. December Sales Down 13%; Full 2006 Sales Down 8%
-----------------------------------------------------------------
Ford Motor Company's dealers delivered 233,621 new vehicles to
U.S. customers in December, down 13% compared with a year ago.
Lower F-Series sales (down 21% compared with last December's near-
record month) and lower sales for the discontinued Taurus and
Freestar minivan more than accounted for the decline.

Full year sales totaled 2.9 million, down 8% compared with full
year 2005.  Car sales were 5% higher than a year ago.  It was the
second year in a row of higher car sales and the first back-to-
back increase since 1993-1994.  Ford's new mid-size sedans were
the major factors behind the increase as combined sales for the
Ford Fusion, Mercury Milan, and Lincoln MKZ totaled 211,469.
Awareness and demand for these award-winning products continues to
grow.  In December, Fusion sales were up 67%, Milan sales were up
36%, and MKZ sales were up 78%.  MKZ sales of 3,795 were the
highest for any month.

Full year truck sales were down 14% as higher gasoline prices and
long-term demographic trends drove SUV sales lower and a soft
housing industry weighed on full-size truck sales.  Ford believes
these factors will continue to weigh on these segments in 2007.
New products should help mitigate these factors.  The company's
new full-size SUVs, Ford Expedition and Lincoln Navigator, closed
2006 by posting higher sales each month in the fourth quarter.  
The company will soon introduce a new Super Duty F-Series pickup
truck.  This model accounts for about 40% of total F-Series sales.

Conversely, passenger car sales and crossover utility vehicles
should continue to benefit from demographic trends (notably the
aging of the baby boomer generation) and higher gasoline prices.
In December, the company expanded its CUV line with the
introduction of the Ford Edge and Lincoln MKX.  In addition, the
company will introduce a redesigned Ford Escape and Mercury
Mariner early this year.  Escape has been the best-selling CUV
since it was introduced in late 2000.

Land Rover was the company's only brand to post higher sales in
2006.  Land Rover's full year sales totaled 47,774 -- a new
calendar year sales record.  Although Lincoln's overall sales were
down 2%, sales to individual retail customers rose 4%.

                      U.S. Inventories Lower

At the end of December, Ford, Lincoln and Mercury inventories were
estimated at 590,000 units.  This level is 143,000 units lower
than a year ago.  The company estimates less than 10% of the total
inventory is 2006 models.

                        About Ford Motor Co.

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

                           *     *     *

As reported in the Troubled Company Reporter on Dec. 12, 2006,
Standard & Poor's Ratings Services affirmed its 'B' bank loan and
'2' recovery ratings on Ford Motor Co. after the company increased
the size of its proposed senior secured credit facilities to
between $17.5 billion and $18.5 billion, up from $15 billion.

As reported in the Troubled Company Reporter on Dec. 7, 2006,
Fitch Ratings downgraded Ford Motor Company's senior unsecured
ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of
both the secured facilities and the senior unsecured convertible
notes being offered.

As reported in the Troubled Company Reporter on Dec. 6, 2006,
Moody's Investors Service assigned a Caa1, LGD4, 62% rating to
Ford Motor Company's $3 billion of senior convertible notes due
2036.


FREEDOM PACKAGING: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Freedom Packaging Company, Inc.
        5 Sam Stratton Road
        Amsterdam, NY 12010

Bankruptcy Case No.: 06-13465

Type of Business: The Debtor manufactures containers used to
                  transport powder, chemicals, paints and liquids
                  of all kinds.  The company also produces plastic
                  tank liners that are used inside existing liquid
                  storage containers.

Chapter 11 Petition Date: December 21, 2006

Court: Northern District of New York (Albany)

Judge: Robert E. Littlefield Jr.

Debtor's Counsel: Robert J. Rock, Esq.
                  Law Office of Robert J. Rock
                  60 South Swan Street
                  Albany, NY 12210
                  Tel: (518) 463-5700
                  Fax: (518) 434-6140

Total Assets: $128,731

Total Debts:  $2,723,053

Debtor's 20 Largest Unsecured Creditors:

   Entity                                           Claim Amount
   ------                                           ------------
   First Niagara Financial Group                        $434,177
   P.O. Box 514
   Lockport, NY 14095-0514

   Reed, Charles E.                                     $391,861
   3030 Park Avenue, Apartment 3E12
   Bridgeport, CT 06604

   Gross, Philip M.                                     $320,212
   8 Pellington Court
   Pine Brook, NJ 07058

   Robb, Walter L.                                      $308,296
   3000 Troy-Schenectady Road
   Schenectady, NY 12309

   Opie, John D.                                        $271,389
   17 Twin Walls Lane
   Weston, CT 06883

   Lawrence, Jon G.                                     $202,695

   AIDA- Lease & Taxes                                  $112,466

   Loudon Plastics, Inc.                                $93,588

   Montgomery County Revolving Loan                     $63,310

   Winpak                                               $34,720

   Lawrence, Irving + Evelyn                            $18,044

   Plastic Welding Technology, Inc.                     $17,000

   K P Mc Namara Company                                $16,500

   Bollam, Sheedt, Torani & Co. LLP                     $15,169

   Ritchie, Donald                                       $9,618

   Laco Vinyl Product, Inc.                              $9,250

   Crane, Greene & Parente                               $8,053

   Heslin Rothenberg Farley & Mesiti                     $7,095

   LinPac, Inc.                                          $4,293

   National Grid                                         $4,037


GALAXY MINERALS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Galaxy Minerals, Inc.
        dba Heaven Express, Inc.
        dba Golden Sands Eco Protection, Inc.
        500 Park Avenue Suite 203
        Lake Villa, IL 60046

Bankruptcy Case No.: 06-17232

Debtor affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Oro Blanco Mining, LLC                     06-17234
      Stealth Enterprises, Inc.                  06-17235
      Scott Goldstein                            06-17237

Type of Business: The Debtor develops, acquires and exploits
                  mineral assets.

Chapter 11 Petition Date: December 28, 2006

Court: Northern District of Illinois (Chicago)

Judge: Jacqueline P. Cox

Debtors' Counsel: Sheri-Ann Sendzischew, Esq.
                  Law Offices of Ouriel & Sendzischew, PA
                  3030 South West 28th Street
                  Miami, FL 33133
                  Tel: (305) 444-9924

Total Assets: $1,285,463

Total Debts:  $13,836

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


GENERAL MOTORS: U.S. December Sales Down 9.6%; 2006 Sales Down 9%
-----------------------------------------------------------------
General Motors Corp. dealers in the United States delivered
341,327 vehicles in December, an increase of 10% (43,771) compared
with November, but a reduction of 9.6% on a sales-day adjusted
basis compared with a strong year-ago December.  GM's total annual
U.S. sales of 4.1 million vehicles in 2006 were down 9% compared
with last year's 4.5 million, due to planned reductions in daily
rental and other marginally profitable sales.

"December was a very solid sales month for GM, exceeding our
expectations, especially in full-size trucks and SUVs," said Mark
LaNeve, vice president, GM North American Sales, Service and
Marketing.

"In 2006, despite challenging conditions, we stuck to the game
plan and achieved our stated goals in support of Rick Wagoner's
turnaround plan for North America.

"Specifically, we exceeded 3 million retail sales and stabilized
market share, improved residual values and transaction prices,
lowered daily rental sales, and we accomplished all of this while
being the only major manufacturer to substantially lower incentive
spending (down $700).

"For 2007, we'll continue our plans to stabilize retail volume,
improve our mix, reduce sales to the daily rental market, exercise
strategic and tactical incentive programs and strengthen average
transaction prices.

"We will continue to provide customers with the best coverage in
the industry, including our 5 year/100,000 mile limited powertrain
warranty with roadside assistance and courtesy transportation.

"As we move to the next phase of the turnaround plan, we plan to
win by offering our customers the best products with industry-
leading value and dealer service," Mr. LaNeve added.

"So we are optimistic as we introduce exceptional new vehicles --
such as the GMC Acadia and Sierra, Saturn Aura and Outlook, Buick
Enclave, Chevrolet Silverado and the all-new Cadillac CTS."

December sales were up 10% compared with November, driven by a
surge in full-size trucks that offer outstanding fuel economy and
value.  Highlights include:

   * Best sales month of the year for Cadillac (22,715 vehicles)
     with a 65% increase in truck sales compared with December
     2005,

   * Saturn total December sales up 42%

   * Saab total and retail sales were up 33%

   * Saturn and Saab saw car sales increases, and total GM car
     sales in December were up 2% on a sales-day adjusted basis.

For calendar year 2006, GM noted several significant achievements
that point to strong consumer acceptance of its new products:

   * Including the GMC Sierra, GMC Canyon and Chevrolet Colorado,
     GM sold more than a million pickup trucks in 2006.  GM moved
     the much-anticipated launch of the all-new full size 2007
     Chevrolet Silverado and GMC Sierra pickup trucks ahead
     13 weeks.

   * Sales of the Chevrolet Equinox and HHR, Pontiac Torrent and
     Saturn VUE drove GM's small utility and crossover sales up
     27% in 2006, with 346,952 total deliveries.

   * HUMMER had a record sales year with 71,524 deliveries, up
     26%.  H3 sales were up 63%, to 54,052 deliveries, compared
     with 2005.

   * Saturn sales for 2006 totaled a record 226,375 vehicles, a
     6% increase on a sales-day adjusted basis compared with 2005.
     The Aura, Sky and VUE led this improvement.  The new Saturn
     Outlook crossover is being launched now.

   * Pontiac G6 had a 26% sales increase in 2006, compared with
     2005.  Chevrolet Impala sales were up 18%, with 289,868
     vehicles sold.  Chevrolet HHR sold 101,298 vehicles and Buick
     Lucerne sold 96,515 vehicles in 2006, each building on their
     launch momentum.

As GM executes the North America turnaround plan, much media
attention has focused on the sales races between GM and its
competitors.

"We are obviously competing in a fiercely contested global
marketplace," Mr. LaNeve said.

"We're optimistic that our newest generation of products will
continue to drive revenue growth and brand image."

                      Certified Used Vehicles

December 2006 sales for all certified GM brands, including GM
Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles,
Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned
Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 41,800
units, down nearly 6% from last December.

GM Certified Used Vehicles, the industry's top selling certified
brand, posted December sales of 35,774 units, down 8%.  Cadillac
Certified Pre-Owned Vehicles posted strong December sales of 3,948
units, up 18%.  Saturn Certified Pre-Owned Vehicles sold 1,341
units in December, down nearly 18%.  Saab Certified Pre-Owned
Vehicles sold 607 units, up 9%, and HUMMER Certified Pre-Owned
Vehicles sold 130 units.

Total 2006 sales for all certified GM brands were 520,189 units,
down 2% from last year's total.  Annual sales for GM Certified
Used Vehicles, the industry's top-selling manufacturer-certified
brand, were 449,461 units, down 1% from its category record sales
results in 2005, while Chevrolet again finished the year as the
industry's top-selling single-make certified used vehicle brand.

Cadillac Certified Pre-Owned finished 2006 with sales of 42,143
units, up 9% over the previous year.  Saab Certified Pre-Owned
Vehicles sold 8,330 units in 2006, down nearly 4%, while Saturn
Certified Pre-Owned Vehicles sold 19,244 units, down 35%.  HUMMER
Certified Pre-Owned Vehicles sold 1,011 units in its first year of
operation.

"Cadillac Certified Pre-Owned Vehicles posted another strong
month, with December sales of 3,948 units, up 18% from last
December, and total annual 2006 sales up 9% from 2005," Mr. LaNeve
said.

"GM Certified Used Vehicles finished 2006 as the industry's top-
selling certified brand for the fifth consecutive year, while
Chevrolet ranked as the top-selling single-line make certified
used vehicle brand.  Certified GM brands, including GM Certified
Used Vehicles, Cadillac, Saturn, Saab and HUMMER Pre-Owned
Vehicles, again led all manufacturers with total 2006 sales of
520,189 units."

               GM North America Reports December and
                  2006 Fourth-Quarter Production

In December, GM North America produced 319,000 vehicles (125,000
cars and 194,000 trucks).  This is down 42,000 vehicles or 12%
compared to December 2005 when the region produced 361,000
vehicles (139,000 cars and 222,000 trucks).  (Production totals
include joint venture production of 16,000 vehicles in December
2006 and 24,000 vehicles in December 2005.)

Also, GM North America built 1.107 million vehicles (447,000 cars
and 660,000 trucks) in the fourth quarter of 2006.  This is down
174,000 vehicles or 14% compared to the fourth quarter of 2005
when the region produced 1.281 million vehicles (483,000 cars and
798,000 trucks).

Additionally, the region's 2007 first-quarter production forecast
is revised at 1.120 million vehicles (455,000 cars and 665,000
trucks), down 20,000 vehicles from last month's guidance.  The
majority of the production decrease is attributed to GM's ongoing
efforts to reduce low-margin daily rental fleet sales.  The
remainder of the cuts is attributed to shifting production to the
company's new full-size pickups and the ongoing management of
inventories.

                  2006 Revised Fourth Quarter and
              2007 First Quarter Production forecasts

GM Europe

The region's 2006 fourth-quarter production forecast is revised at
443,000 vehicles.  This is down 2,000 vehicles compared with last
month's guidance.  In the fourth quarter of 2005 the region built
443,000 vehicles.  The region's 2007 first-quarter production
forecast remains unchanged at 508,000 vehicles.  In the first
quarter of 2006 the region built 494,000 vehicles.

GM Asia Pacific

GM Asia Pacific's 2006 fourth-quarter production forecast is
revised at 507,000 vehicles, up 3,000 vehicles from last month's
guidance.  In the fourth quarter of 2005 the region built 420,000
vehicles.  The region's 2007 first-quarter production forecast is
revised at 531,000 vehicles, down 8,000 vehicles from last month's
guidance.  In the first quarter of 2006 the region built 472,000
vehicles.

GM Latin America, Africa, and the Middle East

The region's 2006 fourth-quarter production estimate is revised at
216,000 vehicles, up 1,000 vehicles from last month's guidance.  
In the fourth quarter of 2005 the region built 188,000 vehicles.
The region's 2007 first-quarter production forecast remains
unchanged at 214,000 vehicles.  In the first quarter of 2006, the
region built 194,000 vehicles.

                     About General Motors Corp.

General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the        
world's largest automaker and has been the global industry sales
leader since 1931.  Founded in 1908, GM employs about 327,000
people around the world.  It has manufacturing operations in
33 countries and its vehicles are sold in 200 countries.  GM sells
cars and trucks under these brands: Buick, Cadillac, Chevrolet,
GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and
Vauxhall.

                           *     *     *

As reported in the Troubled Company Reporter on Dec. 15, 2006,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with negative implications, where
they were placed March 29, 2006.  S&P said the outlook is
negative.

As reported in the Troubled Company Reporter on Nov. 14, 2006,
Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the
proposed US$1.5 billion secured term loan of General Motors Corp.  
The term loan is expected to be secured by a first priority
perfected security interest in all of the US machinery and
equipment, and special tools of General Motors and Saturn Corp.


GLOBAL POWER: Wants to Reject Executory and Lease Contracts
-----------------------------------------------------------
Global Power Equipment Group and its debtor-affiliates ask the U.S
Bankruptcy Court for the District of Delaware for permission to
reject executory contracts and unexpired leases of real
property.

The Debtors tell the Court that they experienced considerable
losses from its Heat Recovery Steam Generation business and
predict a future negative cash usage of approximately $22 million
for the completion of the business.

Additionally, the Debtors concluded that the cost to complete the
business will exceed any potential revenue and will generate a
negative cash flow of approximately $400,000.

The Debtors also tell the Court that they will have no further use
of the property covered by the lease after Dec. 31, 2006.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and auxiliary
equipment primarily used to enhance the efficiency and facilitate
the operation of gas turbine power plants as well as for other
industrial and power-related applications.  The Company has
facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn,
Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai,
China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A., represent
the Debtors.  The Official Committee of Unsecured Creditors
appointed in the Debtors' cases has selected Landis Rath & Cobb
LLP as its counsel.  As of Sept. 30, 2005, the Debtors reported
total assets of $381,131,000 and total debts of $123,221,000.  The
Debtors' exclusive period to filed a chapter 11 plan expires on
Jan. 26, 2007.


GLOBAL POWER: Wants to Removal Period Extended Until March 27
-------------------------------------------------------------
Global Power Equipment Group and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware to extend,
until March 27, 2007, the period within which they can remove
civil actions.

The Debtors tell the Court that they are currently focusing on
responding to information requests submitted by the Official
Committee of Unsecured Creditors, preparing schedules of assets
and liabilities and statements of financial affairs and other
critical issues relating to its chapter 11 case.

Headquartered in Tulsa, Oklahoma, Global Power Equipment Group
Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides  
power generation equipment and maintenance services for its
customers in the domestic and international energy, power and
infrastructure and service industries.  The Company designs,
engineers and manufactures a range of heat recovery and auxiliary
equipment primarily used to enhance the efficiency and facilitate
the operation of gas turbine power plants as well as for other
industrial and power-related applications.  The Company has
facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn,
Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai,
China; Nanjing, China; and Heerleen, The Netherlands.

The Company and 10 of its affiliates filed for chapter 11
protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045).
Attorneys at White & Case LLP and The Bayard Firm, P.A.,
represent the Debtors.  The Official Committee of Unsecured
Creditors appointed in the Debtors' cases has selected Landis
Rath & Cobb LLP as its counsel.  As of Sept. 30, 2005, the
Debtors reported total assets of $381,131,000 and total debts of
$123,221,000.  The Debtors' exclusive period to filed a chapter
11 plan expires on Jan. 26, 2007.


GRANITE BROADCASTING: Equity Holders Want Own Committee Formed
--------------------------------------------------------------
Harbinger Capital Partners Master Fund I, Ltd., GoldenTree High
Yield Master Fund II, Ltd., and MFC Global Investment Management
(U.S.), LLC, holders of over 50% of Granite Broadcasting Corp.'s
12.75% cumulative exchangeable preferred stock, has asked the
U.S. Trustee to appoint an official committee of preferred equity
holders.

The U.S. Trustee convened an organizational meeting of creditors
on December 21, 2006, during which it declined to appoint an
official committee of unsecured creditors and deferred decision
on the Preferred Equity Holders' request pending the Debtors'
response, Mark I. Bane, Esq., at Ropes & Gray LLP, in New York,
relates.

The Preferred Equity Holders thus ask the U.S. Bankruptcy Court
for the Southern District of New York to direct the U.S. Trustee
to appoint an Official Committee of Preferred Equity Holders.

Mr. Bane notes the dominant consideration in determining whether
an equity committee should be appointed in a bankruptcy case is
whether the Debtor is "hopelessly insolvent."  

Based on its analysis, Chanin Capital Partners L.P. has concluded
that Granite's true enterprise value is between $630,900,000 to
$698,000,000, providing value to Preferred Equity Holders of
between $19,400,000 and $101,500,000, or a 9.7% to 50.9%
recovery.  Chanin concluded that there is substantial value
available to the holders of Preferred Equity even with the firm's
conservative approach.  Thus, Mr. Bane stresses, any objective
analysis would evidence that Granite is wholly solvent.

Mr. Bane tells Judge Gropper that despite the fiduciary
responsibility owed by the Debtors' officers and directors to
shareholders, Granite's board of directors and management team
are besieged by conflicts of interest that have rendered most of
them unable to represent and protect the interests of the
Preferred Equity Holders.  Absent the formation of an official
Preferred Equity Committee, the Preferred Equity Holders will be
inadequately represented, he asserts.

Mr. Bane tells the Court that management's collaboration with
Silver Point Finance LLP is apparent in a certain restructuring
support agreement and in the proposed "pre-negotiated" plan of
reorganization, which is premised on flawed valuations.  Silver
Point's intent is to present an artificially low valuation to
justify their retention and control of all of the equity in
reorganized Granite, Mr. Bane says.

In exchange for facilitating the scheme, Mr. Bane relates,
Granite's insiders will receive a rich payoff.  He says that W.
Don Cornwell, chief executive officer and chairman of the
Debtors' board of directors will receive, among other things, up
to $3,800,000 in future salary and bonuses, in addition to other
benefits.

According to Mr. Bane, Mr. Cornwell's current pattern of conduct
is not new, but rather reflects abuse that has persisted for
years.  Prior to the Chapter 11 filings, Granite's Board pursued
a course of action dominated by self-interest that Harbinger and
GoldenTree were compelled to institute lawsuits against Granite
and several of its Board members.  

Mr. Bane adds that in June 2006, Granite's Board rejected
Harbinger and GoldenTree's $90,000,000 new financing proposal,
which provided Granite the means to, inter alia, avoid bankruptcy
and stabilize its capital structure.  Granite's Board members sat
back while Mr. Cornwell attempted to extract extravagant personal
benefits as a condition to his facilitating the restructuring.

After Harbinger and GoldenTree rejected Mr. Cornwell's payoff
demands, the Board entered into the Silver Point Credit Facility.
Mr. Cornwell was not precluded by the Board from participating in
its meetings, despite the blatant conflict of interest, Mr. Bane
notes.

Mr. Bane informs Judge Gropper that Silver Point is a majority
holder of Granite's senior notes, which it bought to gain control
of Granite in any restructuring.  Silver Point's objective was
furthered by the Board's acceptance of its Credit Facility, which
was inferior to Harbinger and GoldenTree's proposed financing but
which acceded to Mr. Cornwell's personal demands.  

Mr. Bane argues that the Board's expansion of Preferred Equity's
number of authorized shares was done to enable the dilution of
the voting power of the Preferred Equity, which diminishes the
Preferred Equity's economic interest in Granite and neutralizes
the ability of the Preferred Equity to protect their interest.

The Board has failed to satisfy its fiduciary obligations to
safeguard the interest of equity prior to the bankruptcy filing,
and all evidence shows that the Board has no intention to do so
now in the Chapter 11 process, Mr. Bane asserts.

The Debtors' proposed disclosure statement acknowledges that,
aside from one $23,500,000 contingent and disputed claim, there
are just $3,500,000 of unsecured claims.  The pool of unsecured
claims is dwarfed by the $500,000,000 in prepetition secured
debt, controlled almost entirely by Silver Point, and the more
than $300,000,000 of Preferred Equity.  Mr. Bane tells Judge
Gropper that a Preferred Equity Committee is the only body that
would be charged with the fiduciary duty to protect the holders
of Preferred Equity and that would be capable of challenging a
Proposed Plan that is based largely on untested and unreliable
assumptions, and which proposes to wipe out the Preferred Equity
without meaningful negotiation.

Mr. Bane explains that no party can adequately represent the
interest of Preferred Equity, with the exception of an official
committee, because the Preferred Equity Holders:

    -- individually, do not owe fiduciary duty to the other
       Preferred Equity holders and cannot be expected to
       subsidize the representation of all the Preferred Equity
       Holders; and

    -- are not a party to the necessary proprietary information
       required to perform the duties of an official committee in
       the bankruptcy cases.

Mr. Bane assures the Court that the appointment of a Preferred
Equity Committee will neither delay the Debtors' Chapter 11 cases
nor impose undue expense on their estates.  On the other hand, he
avers, if the appointment of a Preferred Equity Committee is
delayed, the course of the restructuring may be irreversible set,
to the prejudice of the Preferred Equity Holders.

Although a Preferred Equity Committee would retain its own legal
and financial advisors, the Court's oversight of professional
fees operates as a check against a Preferred Equity Committee
incurring unnecessary costs or undertaking unreasonable
activities or frivolous litigation, Mr. Bane says.  

Furthermore, costs alone "cannot and should not deprive public
debt and security holders of representation," Mr. Bane asserts,
citing In re McLean Industries, Inc., 70 B.R. 852, 860 (Bankr.
S.D.N.Y. 1987).  He notes that the entire purpose of appointing a
Preferred Equity Committee is to provide equal resources,
financial and informational, to the Preferred Equity Holders, so
that they will be on a playing field slightly more leveled with
the Prepetition Secured Lenders.  The additional costs are
justified since there is little possibility that a Preferred
Equity Committee will be redundant of the representation provided
by a creditors committee, if appointed, Mr. Bane maintains.

Furthermore, Mr. Bane relates that the Debtors cases are
sufficiently large and complex to warrant a Preferred Equity
Committee.  The Debtors have retained their own legal and
financial professionals based, in part, on their experience in
other "large and complex" Chapter 11 cases.

Headquartered in New York, Granite Broadcasting Corp.
-- http://www.granitetv.com/-- owns and operates, or provides
programming, sales and other services to 23 channels in 11
markets: San Francisco, California; Detroit, Michigan; Buffalo,
New York; Fresno, California; Syracuse, New York; Fort Wayne,
Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin;
Binghamton, New York; Utica, New York and Elmira, New York.  The
company's channel group includes affiliates of NBC, CBS, ABC, CW
and My Network TV, and reaches approximately 6% of all U.S.
television households.

The Company and five of its debtor-affiliates filed for chapter 11
protection on Dec. 11, 2006 (Bankr. S.D.N.Y. Case No. 06-12984).  
Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
represents the Debtors in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it estimated
assets of $443,563,020 and debts of $641,100,000.  (Granite
Broadcasting Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


GRANITE BROADCASTING: Wants to Assume CBS/WB Settlement Agreement
-----------------------------------------------------------------
On February 7, 1994, Pacific FM, Inc., the former owner of
KOFY-WB 20, entered into a certain San Francisco network
affiliation agreement with WB Communications, Inc.  KOFY-WB 20 is
Granite Broadcasting Corporation's television station in San
Francisco, California, whose call letters later became KBWB-TV.

On February 1, 1997, Granite, as the parent of the owner of
WDWB-TV, entered into a certain Detroit network affiliation
agreement with The WB Television Network Partners, L.P., which
initial term was from February 1, 1997, through May 31, 2004.

In connection with the KBWB acquisition, WB, Granite, and Pacific
FM entered into a memorandum of agreement that extended the terms
of the San Francisco Network Affiliation Agreement for 10 years,
commencing January 11, 1998.   

The Memorandum Agreement was amended to reduce the term by five
years and to grant WB and Granite a mutual option to further
extend the term for five years from January 10, 2003, through
January 9, 2008, Ira S. Dizengoff, Esq., at Akin Gump Strauss
Hauer & Feld LLP, in New York, discloses.

Granite purchased Pacific FM in July 1998.

On September 25, 2002, Granite exercised its option, extending
the term of the San Francisco Network Affiliation Agreement
through January 9, 2008.

In May 2004, Granite and WB entered into a letter agreement,
which amended the Detroit Network Affiliation Agreement and
extended its term for three years from May 31, 2004, through
May 31, 2007.

            Debtors' Attempt to Sell KBWB and WDWB

In September 2005, the Debtors entered into agreements to sell
KBWB to AM Broadcasting KBWB, Inc., and WXON to AM Broadcasting
WDWB, Inc.  The gross proceeds from the AM Sales would have been
$180,000,000, Mr. Dizengoff notes.

WXON is the legal entity for the former WDWB-TV, which is now
WMYD-TV.

Before the sale closed, on January 24, 2006, WB announced that it
would merge its WB Network with CBS Corporation's United
Paramount Network to form the "CW Network."  The WB Network also
announced that, effective as of September 2006, it would no
longer provide programming to current WB Network affiliates.
The CW Network did not choose either KBWB or WXON as a new CW
Network affiliate.  

Mr. Dizengoff relates that the loss of WB Network affiliate
status made it impossible for the Debtors to meet certain closing
conditions in the AM Sales documents.  The AM Sales agreements
were officially terminated on May 1, 2006.

                        The WB Actions

On May 17, 2006, the Debtors filed a lawsuit in the Delaware
Court of Chancery against the WB/CBS Parties, other than Warner
Bros. Television Distribution, Inc., regarding the termination of
the Affiliation Agreements.

The Delaware Action alleged, among other things, that WB breached
its contractual obligations by prematurely terminating the
Affiliation Agreements and repudiated certain agreements to
extend the terms of the Affiliation Agreements, which damaged the
Debtors and led to the termination of the AM Sales.  The WB/CBS
Parties deny the Debtors' allegations.  

Subsequently, WB asserted a counterclaim against Granite alleging
that Granite breached the Affiliation Agreements by failing to
make certain required payments under certain programming
contracts.  Granite denies WB's allegations.

WB Distribution filed a lawsuit before the Central District of
the Los Angeles County Superior Court in August 2006 against
certain of the Debtors regarding their failure to make payments
under certain syndication license agreements with certain of the
Debtors.  The Debtors deny WB Distribution's allegations.

The WB Actions were in the discovery phases prior to the Petition
Date.  The Actions have been stayed pursuant to Section 362 of
the Bankruptcy Code.

                 Debtors Want to Assume Pacts

The Debtors seek the U.S. Bankruptcy Court for the Southern
District of New York's authority to:

   (i) enter into and perform under a certain settlement
       agreement, dated as of December 8, 2006, with the WB
       Parties and CBS; and

  (ii) assume the Settlement Agreement and the assumed
       programming agreements.

To resolve the WB Actions, the Debtors and the CBS/WB Parties
engaged in good faith, arm's-length negotiations prior to the
Petition Date, which resulted in the Settlement Agreement.

Pursuant to the Settlement Agreement:

   (1) the WB Parties will pay Granite $15,500,000, less any
       amounts due in arrears under the Assumed Programming
       Agreements, immediately after the later of the Settlement
       Agreement's effective date or the first business day on
       which there is no payment default existing under any other
       programming agreements;

   (2) immediately after Granite's receipt of the Settlement
       Payment, the Debtors and the WB/CBS Parties will take any
       actions necessary to dismiss the WB Actions including all
       claims and counterclaims, with prejudice;

   (3) as of the Effective Date, the WB Parties waive any claim
       for amounts due to them or their affiliates by any of the
       Debtors, or any other claim pursuant to the Affiliation
       Agreements and certain Drew Carey Agreements;

   (4) as of the Effective Date, WXON, with WB Distribution, as
       successor, will assume several programming agreements:

       (a) a syndication license agreement for "Will & Grace,"
           dated as of March 27, 2000;

       (b) a syndication license agreement for "Friends," dated
           as of May 9, 2001; and

       (c) a syndication license agreement for "The Fresh Prince
           of Bel-Air (3rd Cycle)," dated as of August 12, 2002;

   (5) upon the deduction of the Cure Payment from the Settlement  
       Payment, WXON's obligation to pay the Cure Payment will be
       deemed satisfied.  As of the Petition Date, the aggregate
       amount in arrears under the Assumed Programming Agreements
       is $2,300,000;

   (6) the parties agree and acknowledge that KBWB has fully
       discharged its payment obligations pursuant to its
       agreement with WB Distribution for "Fresh Prince of
       Bel-Air"; and

   (7) as of the Effective Date, the Debtors and the WB Parties
       exchange mutual releases.

                     Approval is Warranted

Mr. Dizengoff tells the Court that the request should be granted
because:

    -- although the Debtors believe they would prevail in any
       litigation with the WB/CBS Parties with respect to the
       Delaware Action, the results of litigation can never be
       predicted with certainty;

    -- the Settlement Agreement eliminates the risk of devoting
       substantial time and resources, the negative effect of,
       and considerable future expense and delay that would be
       incurred in litigating all of the issues resolved by the
       Agreement;

    -- the Debtors' estates will gross over $24,000,000 from the
       Settlement Agreement in cash payments and waivers of past
       due amounts otherwise payable to the WB Parties and will
       net $132,000,000 after receipt of the Settlement Payment
       and offsetting the Cure Payment; and

    -- the parties waive, among others, an estimated $2,700,000
       due under the Affiliation Agreements and $6,000,000 due
       under the Drew Carey Agreements.

                   About Granite Broadcasting

Headquartered in New York, Granite Broadcasting Corp.
-- http://www.granitetv.com/-- owns and operates, or provides
programming, sales and other services to 23 channels in 11
markets: San Francisco, California; Detroit, Michigan; Buffalo,
New York; Fresno, California; Syracuse, New York; Fort Wayne,
Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin;
Binghamton, New York; Utica, New York and Elmira, New York.  The
company's channel group includes affiliates of NBC, CBS, ABC, CW
and My Network TV, and reaches approximately 6% of all U.S.
television households.

The Company and five of its debtor-affiliates filed for chapter 11
protection on Dec. 11, 2006 (Bankr. S.D.N.Y. Case No. 06-12984).  
Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP,
represents the Debtors in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it estimated
assets of $443,563,020 and debts of $641,100,000.  (Granite
Broadcasting Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


INCO LIMITED: Shareholders Approve Merger with Itabira Canada
-------------------------------------------------------------
At a special meeting held on Jan. 3, 2007, in Toronto, Canada,
shareholders of Inco Limited overwhelmingly approved the
amalgamation of Inco with Itabira Canada Inc., a wholly owned
indirect subsidiary of Companhia Vale do Rio Doce.  Pursuant to
the amalgamation, Inco will become a wholly owned indirect
subsidiary of CVRD and change its name to "CVRD Inco Limited".

Inco and Itabira Canada intend to file articles of amalgamation,
which will become effective today, Jan. 4, 2007.  Upon the
amalgamation, shareholders of Inco (other than dissenting
shareholders and Itabira Canada) will receive, for each Inco
common share held by them, one Class A redeemable preferred
share of CVRD Inco.  As soon as practicable following the
amalgamation, each such Class A redeemable preferred share of CVRD
Inco will be redeemed for CDN$86.00 in cash.

An application has been made for the de-listing of Inco's shares
from the Toronto Stock Exchange.   Inco expects to suspend its
reporting obligations with the U.S. Securities and Exchange
Commission effective Jan. 5, 2007 and is applying to cease to be a
reporting issuer under Canadian securities laws.

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

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


INDYMAC MBS: Fitch Rates $4.7 Million Certificates at BB
--------------------------------------------------------
Fitch rates IndyMac MBS, Inc., Residential Asset Securitization
Trust 2006-A16, residential mortgage pass-through certificates,
as:

    -- $638.4 million classes 1-A-1, 1-A-2, 1-A-3, 1-A-4, 2-A-1,
       2-A-2, 2-A-3, 1-PO, A-X, and A-R 'AAA' ('senior
       certificates');

    -- $13.5 million class B-1 'AA';

    -- $8.1 million class B-2 'A';

    -- $4.7 million class B-3 'BBB';

    -- $4.7 million non-offered class B-4 'BB';

    -- $3.7 million non-offered class B-5 'B'.

The 'AAA' rating on the senior certificates reflects the 5.50%
subordination provided by the 2.00% B-1, 1.20% class B-2, 0.70%
class B-3, 0.70% non-offered and non-rated class B-4, 0.55% non-
offered and non-rated class B-5, and 0.35% non-offered and non-
rated class B-6.  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, the
strength of the legal and financial structures, and the
capabilities of IndyMac Bank, FSB (IndyMac) as a servicer (rated
'RPS2+' by Fitch).

The mortgage pool consists of 1,128 recently originated,
conventional, fixed-rate, first lien, one- to four-family
residential mortgage loans with original terms to stated maturity
of 30 years.  As of the cut-off date (Dec. 1, 2006), the pool had
an aggregate principal balance of approximately $675,594,744.94.
The average loan balance is $598,931.51, and the weighted average
original loan-to-value ratio (OLTV) for the mortgage loans in the
pool is approximately 73.62%.  The weighted average FICO credit
score for the pool is approximately 714. Cash-out and rate/term
refinance loans represent 42.33% and 18.15% of the pool,
respectively.  Second and investor-occupied homes account for
3.68% and 5.47% of the pool, respectively.  The states that
represent the largest geographic concentration are California
(47.68%), New York (8.43%), and Florida (7.82%).

None of the mortgage loans are 'high cost' loans as defined under
any local, state, or federal laws.

The loans were originated or purchased by IndyMac Bank, F.S.B.,
which were subsequently sold to IndyMac MBS, Inc. IndyMac MBS,
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 separate multiple real estate mortgage
investment conduits.  Deutsche Bank National Trust Company will
act as trustee.


J.P. MORGAN: Moody's Rates Class M-10 Certificates at Ba1
---------------------------------------------------------
Moody's Investors Service has assigned a Aaa rating to the senior
certificates issued by J.P. Morgan Mortgage Acquisition Trust
2006-WMC4 and ratings ranging from Aa1 to Ba1 for the subordinate
certificates.

The securitization is backed by WMC Mortgage Corp originated
adjustable-rate (78%) and fixed-rate (22%) subprime mortgage
loans.  The ratings are based primarily on the credit quality of
the loans, subordination, overcollateralization, excess spread,
and an interest rate swap agreement provided by JPMorgan Chase
Bank, National Association.  Moody's expects collateral losses to
range from 4.75% to 5.25%.

JPMorgan Chase Bank, National Association will service the loans.  
Moody's has assigned JPMorgan Chase Bank, National Association its
top servicer quality rating of SQ1 as primary servicer of subprime
loans.

The Complete Rating Actions are:

Issuer: J.P. Morgan Mortgage Acquisition Trust 2006-WMC4

    * Cl. A-1A, Assigned Aaa
    * Cl. A-1B, Assigned Aaa
    * Cl. A-2, Assigned Aaa
    * Cl. A-3, Assigned Aaa
    * Cl. A-4, Assigned Aaa
    * Cl. A-5, 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 certificate was 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.


KAISER ALUMINUM: Names Martin Carter as VP in Common Alloy Unit
---------------------------------------------------------------
Kaiser Aluminum disclosed that Martin Carter is joining the
company as vice president-general manager, common alloy products
effective the first quarter of 2007.  In this newly created
leadership post, Carter will oversee common alloy extrusion and
forging operations serving the general engineering, automotive and
custom industrial markets.

Prior to joining Kaiser Aluminum, Carter built a 16-year career
with Norsk Hydro, most recently as president of Hydro Aluminum
North America.  In addition, during his tenure with Norsk Hydro,
Carter managed strategic development for all Hydro businesses as
head of corporate strategy, Norsk Hydro ASA.

"We're delighted that Martin is joining our leadership team," said
Jack Hockema, chairman, president and CEO of Kaiser Aluminum.  "He
comes to us with broad industry experience and a passion for the
aluminum fabricated products business.  We look forward to
Martin's contributions as we continue to grow our business."

Headquartered in Foothill Ranch, California, Kaiser Aluminum
Corporation -- http://www.kaiseraluminum.com/-- is a leading
producer of fabricated aluminum products for aerospace and high-
strength, general engineering, automotive, and custom industrial
applications.  The Company filed for chapter 11 protection on
Feb. 12, 2002 (Bankr. Del. Case No. 02-10429), and has sold off a
number of its commodity businesses during course of its cases.
Corinne Ball, Esq., at Jones Day, represents the Debtors in their
restructuring efforts.  Lazard Freres & Co. serves as the Debtors'
financial advisor.  Lisa G. Beckerman, Esq., H. Rey Stroube, III,
Esq., and Henry J. Kaim, Esq., at Akin, Gump, Strauss, Hauer &
Feld, LLP, and William P. Bowden, Esq., at Ashby & Geddes
represent the Debtors' Official Committee of Unsecured Creditors.  
The Debtors' Chapter 11 Plan became effective on July 6, 2006, and
the company emerged from Chapter 11.  On June 30, 2004, the
Debtors listed $1.619 billion in assets and $3.396 billion in
debts.  (Kaiser Bankruptcy News, Issue No. 109; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
609/392-0900)


LASALLE COMMERCIAL: Fitch Puts Low-B Ratings on $15.2 Mil. Certs.
-----------------------------------------------------------------
LaSalle Commercial Mortgage Securities Trust 2006-MF4, commercial
mortgage pass-through certificates, are rated by Fitch as:

    -- $393,974,000 class A 'AAA';

    -- $450,901,164 class X 'AAA' (notional amount and interest-
        only);

    -- $7,891,000 class B 'AA';

    -- $11,836,000 class C 'A';

    -- $9,018,000 class D 'BBB+';

    -- $2,255,000 class E 'BBB';

    -- $4,509,000 class F 'BBB-';

    -- $7,891,000 class G 'BB+';

    -- $2,254,000 class H 'BB';

    -- $1,691,000 class J 'BB-';

    -- $1,691,000 class K 'B+';

    -- $1,127,000 class L 'B';

    -- $564,000 class M 'B-';

    -- $6,200,164 class N 'NR'.

All classes 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 374
fixed- and adjustable-rate loans having an aggregate principal
balance of approximately $450,901,164, as of the cutoff date.


LB-UBS COMMERCIAL: Moody's Puts Low-B Ratings on 6 Cert. Classes
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of LB-UBS
Commercial Mortgage Trust 2004-C7, Commercial Mortgage Pass-
Through Certificates, Series 2004-C7 as:

    * Class A-1, $71,763,503, Fixed, affirmed at Aaa
    * Class A-2, $277,800,000, Fixed, affirmed at Aaa
    * Class A-3, $50,000,000, Fixed, affirmed at Aaa
    * Class A-4, $60,000,000, Fixed, affirmed at Aaa
    * Class A-5, $79,000,000, Fixed, affirmed at Aaa
    * Class A-6, $561,636,000, Fixed, affirmed at Aaa
    * Class A-1A, $118,222,381, Fixed, affirmed at Aaa
    * Class X-CL, Notional, affirmed at Aaa
    * Class X-CP, Notional, affirmed at Aaa
    * Class X-OL, Notional, affirmed at Aaa
    * Class B, $10,614,000, Fixed, affirmed at Aa1
    * Class C, $14,153,000, Fixed, affirmed at Aa2
    * Class D, $15,921,000, WAC, affirmed at Aa3
    * Class E, $12,383,000, WAC, affirmed at A1
    * Class F, $14,153,000, WAC, affirmed at A2
    * Class G, $12,383,000, WAC, affirmed at A3
    * Class H, $12,384,000, WAC, affirmed at Baa1
    * Class J, $8,845,000, Fixed, affirmed at Baa2
    * Class K, $17,691,000, Fixed, affirmed at Baa3
    * Class L, $3,538,000, Fixed, affirmed at Ba1
    * Class M, $5,307,000, Fixed, affirmed at Ba2
    * Class N, $3,538,000, Fixed, affirmed at Ba3
    * Class P, $1,769,000, Fixed, affirmed at B1
    * Class Q, $3,538,000, Fixed, affirmed at B2
    * Class S, $3,538,000, Fixed, affirmed at B3

As of the December 15, 2006 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 3.0%
to $1.37 billion from $1.42 billion at securitization.  The
Certificates are collateralized by 90 mortgage loans.  The loans
range in size from less than 1.0% to 13.0% of the pool, with the
top 10 loans representing 63.6% of the pool.  Two loans (including
the largest shadow rated loan, One Lincoln Street), representing
17.8% of the pool, have defeased and been replaced with U.S.
Government securities.  The balance of the collateral is comprised
of eight shadow rated loans, representing 29.3% of the pool, and a
conduit component, representing 52.9% of the pool.  There are no
loans in special servicing and no loans have been liquidated from
the pool.  Nine loans, representing 14.5% of the pool, are on the
master servicer's watchlist, including the largest loan-- 600
Third Avenue.

Moody's was provided with year-end 2005 borrower financials for
100.0% of the performing loans.  Moody's loan to value ratio is
98.6%, compared to 101.5% at securitization.

The former largest shadow rated loan, One Lincoln Street ($180.0
million - 13.0%) defeased on December 29, 2006, subsequent to the
record date.  The current largest shadow rated loan is the
Westfield Shoppingtown Mission Valley Mortgage Loan ($150.0
million -- 10.9%).  The loan is secured by the borrower's interest
(654,100 square feet) in a 1.6 million square foot single-level,
open-air regional mall and an adjacent single-level retail power
center located in San Diego, California.  Mission Valley Center,
the mall portion, was built in 1961 and renovated in 1996.  
Mission Valley West, the power center, was constructed in 1998.  
The center is shadow anchored by Macy's and Macy's Home Store.  
Target owns their building, but leases the ground from the center
(13.0% GLA; lease expiration January 2012). Other anchors include
Bed, Bath and Beyond (5.0% GLA; lease expiration January 2007;
currently under negotiation), AMC Theaters (4.9% GLA; lease
expiration January 2026), Nordstrom (3.4% GLA; lease expiration
February 2007; currently under negotiation).  As of September
2006, the combined occupancy rate was 100.0%, compared to 92.7%
for the mall and 92.3% for the power center at securitization.  
Cash flow has been stable since securitization.  The loan sponsor
is the Westfield Group (Moody's long term issuer rating A2; stable
outlook).  Moody's current shadow rating is Baa2, the same as at
securitization.

The second largest shadow rated loan is the Montgomery Mall Loan
($92.6 million - 6.7%).  The loan is secured by the borrower's
interest (558,884 square feet) in a 1.1 million square foot
enclosed two-level, super regional mall located in North Wales,
Pennsylvania, approximately 20 miles northwest of Philadelphia.  
Built in 1977 and renovated in 1996, the mall is anchored by
Macy's (lease expiration July 2009), Boscov's (lease expiration
February 2027) and Sears (lease expiration October 2020).  All of
the above anchors own their respective buildings and only the land
portion is part of the collateral.  The fourth anchor is J.C.
Penney (Moody's senior unsecured rating Baa3; 26.8% GLA; lease
expiration March 2012).  Comparable in-line store sales for
calendar year 2005 were $385 per square foot, compared to $368,
$358 and $353 at securitization (June 2004), 2003 and 2002
respectively.  As of June 2006, in-line shop occupancy was 83.0%,
compared to 89.0% at securitization. The overall occupancy rate
was 95.1%, compared to 96.1% at securitization.  Despite the
occupancy decline, the loan's net cash flow has improved due to
higher rents, lower operating expenses and loan amortization.  The
loan sponsor is Simon Property Group L.P. (Moody's senior
unsecured rating A3 -- stable outlook).  Moody's current shadow
rating is A2, compared to A3 at securitization.

The third largest shadow rated loan is the World Apparel Center
Loan ($73.0 million -- 5.3%) which represents a 33.3%
participation interest in a $219.0 million first mortgage loan.  
The loan is secured by a 1.1 million square foot, 40-story Class A
office building located in the Times Square submarket of New York
City.  Built in 1970 and renovated in 2002, the building's
principal tenants include Jones Apparel Group (Moody's senior
unsecured rating Baa3 -- stable outlook; 22.0% GLA; lease
expiration April 2012), J.P. Morgan Chase & Co. (Moody's senior
unsecured rating Aa3 -- stable outlook; 6.3% GLA; lease expiration
October 2009), Levi Strauss & Co. (Moody's senior unsecured rating
B3 -- stable outlook; 3.7% GLA; lease expiration January 2012).  
As of September 2006, occupancy was 95.0%, compared to 97.9% at
securitization.  The loan sponsors are Brookfield Trizec
Properties, Inc. and The Swig Investment Company.  The loan is
interest-only for the first 36 months, converting to a 360-month
amortization schedule thereafter. Moody's current shadow rating is
A2, the same as at securitization.

The fourth largest shadow rated loan is the 2100 Pennsylvania
Avenue Loan ($49.5 million - 3.6%), secured by two adjacent Class
A office buildings totaling 303,000 square feet.  Built in 1968
and renovated in 2000, the buildings encompass an entire city
block on 21st Street, between Pennsylvania Avenue and Eye Street
in Washington, D.C. Tenants include Sughrue Mion, PLLC (29.4% NRA;
lease expiration June 2017), Kaiser Permanente (Moody's senior
unsecured MTN rating A3 -- positive outlook; 27.0% NRA; lease
expiration August 2013) and the GSA -- State Department (27.0%
GLA; lease expiration August 2013). As of September 2006,
occupancy was 98.4%, compared to 98.7% at securitization.  The
loan sponsor is George Washington University.  Moody's current
shadow rating is Aa1, compared to Aa2 at securitization.

The top three conduit loans represent 17.6% of the pool.  The
largest conduit loan is the 600 Third Avenue Loan ($168.0 million
- 12.2%), which is secured by a 527,000 square foot, 42-story,
Class A office building located in the Grand Central/UN office
submarket of New York City.  Major tenants include: Time Warner
Companies (Moody's backed senior unsecured rating Baa2 -- stable
outlook; 27.5% NRA; lease expiration December 2010), L-3
Communications Corporation (Moody's backed senior subordinate
rating Ba3 -- stable outlook; 13.1% NRA; lease expiration December
2013), Sumitomo Corporation of America (Moody's backed senior
unsecured rating A2 -- stable outlook; 9.9% NRA; lease expiration
December 2010).  The property is currently 97.6% occupied,
compared to 95.0% at securitization.  The loan is on the master
servicer's watchlist due to a debt service coverage ratio below
1.00X.  The loan is interest only for its full term. The loan
sponsor is GE Pension Trust, which is advised by GE Asset
Management, a subsidiary of General Electric.  Moody's LTV is in
excess of 100.0%, the same as at securitization.

The second largest conduit loan is the Carson Valley Plaza Loan
($45.3 million - 3.3%), which is secured by a 266,000 square foot
power retail center located in Carson City, Nevada, approximately
30 miles south of Reno and 14 miles east of Lake Tahoe. Built in
2003, the center is anchored by Best Buy (11.3% GLA; lease
expiration January 2014), Marshalls (10.0% GLA; lease expiration
November 2013), Michaels (9.0% GLA; lease expiration March 2014).
As of July 2006, in-line shop occupancy was 99.0%, compared to
98.0% at securitization. Overall occupancy was 98.0%, compared to
96.5% at securitization. Net cash flow has been stable since
securitization. The loan is interest only for its full term.
Moody's LTV is in excess of 100.0%, the same as at securitization.

The third largest conduit loan is the North Dekalb Mall Loan
($27.9 million - 2.0%), which is secured by the borrower's
interest (432,000 square feet) in a 628,700 square foot single-
level enclosed regional mall located in Decatur (Atlanta),
Georgia.  Built in 1965 and renovated in 2004, the mall is
anchored by Macy's (197,000 square feet -- not part of
collateral), Burlington Coat Factory (19.0% GLA; lease expiration
November 2012), and AMC Theatres (16.0% GLA; lease expiration
December 2016).  As of September 2006, in-line shop occupancy was
97.6%, compared to 91.4% at securitization. Overall occupancy was
98.9%, compared to 91.2% at securitization.  Despite the
improvement in occupancy, net cash flow has remained stable as a
result of operating expense increases.  The loan was interest-only
for the first 24 months but now amortizes on a 360-month schedule.  
Moody's LTV is in excess of 100.0%, the same as at securitization.

The pool collateral is a mix of retail (39.6%), office and mixed
use (29.9%), U.S. Government securities (17.8%), multifamily and
manufactured housing (9.1%) and industrial and self storage
(3.6%).  The collateral properties are located in 25 states, the
Territory of Guam and the District of Columbia.  The top five
state concentrations are New York (24.7%), California (18.4%),
Pennsylvania (9.1%), Massachusetts (8.4%) and Texas (8.1%). All of
the loans are fixed rate.


LEHMAN MORTGAGE: Fitch Puts Low-B Ratings on $4.7 Million Certs.
----------------------------------------------------------------
Fitch rates Lehman Mortgage Trust $629.3 million mortgage pass-
through certificates, series 2006-9, as:

    -- $589.8 million classes 1-A1 through 1-A28, 2-A1 through
       2-A12, 3-A1, 3-A2, AP, and R 'AAA';

    -- $14.2 million classes M-1A and M-1B 'AA+';

    -- $8.8 million class B1 'AA';

    -- $6.3 million class B2 'A';

    -- $4.4 million class B3 'BBB';

    -- $947,000 class B4 'BBB-';

    -- $2.2 million class B5 'BB';

    -- $2.5 million class B6 'B'.

The 'AAA' rating on the senior certificates reflects the 6.55%
total credit enhancement provided by the 0.79% class M-1A, the
1.46% class M-1B, the 1.40% class B1, the 1.00% class B2, the
0.70% class B3, the 0.15% class B4, the 0.35% class B5, and the
0.40% class B6, 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, IndyMac Bank,
F.S.B., and Countrywide Home Loans Servicing LP.

This transaction contains certain classes designated as
exchangeable certificates and others as regular certificates.
Classes 1-A6, 1-A9, 1-A16 through 1-A20, 1-A25 through 1-A28, 2-
A1, 2-A4, and 2-A12 are the exchangeable certificates.  Classes 1-
A1, 1-A3, 1-A7, 1-A8, 1-A14, 1-A15, 1-A21 through 1-A24, 2-A2, 2-
A3, and 2-A6 through 2-A11 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 2,909 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 (Dec. 1, 2006), the mortgages have an
aggregate principal balance of approximately $631,181,448.  The
mortgage pool has a weighted average original loan-to-value ratio
(OLTV) of 74.07%, a weighted average coupon (WAC) of 6.954%, and a
weighted average remaining term of 358.

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 Lehman
Brothers Bank, FSB, IndyMac Bank, F.S.B., and Countrywide Home
Loans, 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.


LEVEL 3: Completes $744 Mil. Cash Acquisition of Broadwing Corp.
----------------------------------------------------------------
Level 3 Communications, Inc., completed its acquisition of
Broadwing Corporation.  Pursuant to the merger agreement dated
Oct. 16, 2006, Level 3 will pay consideration to Broadwing
shareholders of $8.18 of cash plus 1.3411 shares of Level 3 common
stock for each share of Broadwing common stock outstanding at
closing.  In total, Level 3 will pay approximately $744 million of
cash and will issue approximately 122 million shares of common
stock

"The acquisition of Broadwing benefits Level 3 in two distinct
areas," said Kevin O'Hara, president and chief operating officer
of Level 3.  "The integration of the Broadwing backbone presents
significant synergy opportunities, and the expansion of the
customer base provides strategic growth opportunities for us
moving forward."

                      About Broadwing Corp.

Based in Austin, Texas, Broadwing Corporation (Nasdaq: BWNG)
delivers data, voice and media solutions to enterprises and
service providers over its 19,000-mile intercity fiber network.  
Approximately half of Broadwing's revenue comes from the wholesale
market, with business customers comprising the remaining revenue.

                          About Level 3

Headquartered in Bloomfield, Colorado, Level 3 Communications,
Inc. (Nasdaq: LVLT) -- http://www.Level3.com/-- an international    
communications company, provides Internet connectivity for
millions of broadband subscribers.  The company provides a
comprehensive suite of services over its broadband fiber optic
network including Internet Protocol services, broadband transport
and infrastructure services, colocation services, voice services
and voice over IP services.

                            *    *    *

As reported in the Troubled Company Reporter on Dec. 20, 2006,
Standard & Poor's Ratings Services assigned its 'CCC-' rating to
$650 million of 9.25% senior notes due 2014 issued by Level 3
Financing Inc., a subsidiary of Broomfield, Colorado-based Level 3
Communications Inc.

As reported in the Troubled Company Reporter on Oct. 30, 2006,
Fitch assigns a rating of 'B/RR1' to Level 3 Financing, Inc.'s
issuance of $600 million of 9.25% senior notes due 2014.  In
addition, Fitch affirms the 'CCC' Issuer Default Rating and each
issue rating for Level 3 Communications, Inc. and Level 3
Financing, Inc.  The Rating Outlook is Positive.


LUMTRON TECH: Case Summary & 20 Largest Unsecured Creditors
-----------------------------------------------------------
Debtor: Lumtron Technologies, Inc.
        c/o Bruce H. Schoumacher, Registered Agent
        175 West Jackson Boulevard, Suite 1600
        Chicago, IL 60604

Bankruptcy Case No.: 06-16938

Chapter 11 Petition Date: December 20, 2006

Court: Northern District of Illinois (Chicago)

Judge: Eugene R. Wedoff

Debtor's Counsel: Beverly A. Berneman, Esq.
                  Robert R. Benjamin, Esq.
                  Querrey & Harrow, Ltd.
                  175 West Jackson Boulevard, Suite 1600
                  Chicago, IL 60604
                  Tel: (312) 540-7000
                  Fax: (312) 540-0578

Total Assets: $174,170

Total Debts:  $2,054,497

Debtor's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Daniel DeSerot/               Royalty fees for          $675,113
Janine Jozwiak                license of
18014 Collins Road            AccuraImage
Woodstock, IL 60098           software

FNB of Marengo                Promissory Note           $390,000
Lake in the Hills Bank West   from 7/30/04
4520 West Algonqin            Value of Security:
Lake in the Hills, IL 60156   $173,000

Daniel DeSerot/               Loans advanced in         $303,860
Janine Jozwiak                2006
18014 Collins Road            
Woodstock, IL 60098           

Paperwise, Inc.               Software license          $156,736
                              fees

Paperclip Corporation         Arbitration award         $112,849
                              For licensing fees

Kibble & Prentice Holding     Pending litigation         $80,578
Company                       of declaratory
                              judgment action
                              06 C 6228

Image Access                  License fees               $65,920

Rosenboom & Rosenbloom        Disputed claim for         $48,615
                              software sales

Bank of America               Cash advances for          $28,415
                              operation held
                              jointly with
                              Janine Jozwiak

Silvio DeSerto                Loan from 2005             $22,000

Paul Fotis                    Commissions due            $18,280
                              January 2006 -
                              September 20, 2006

Cranel                        Goods purchased            $15,995

Sate of New York              2006 Sales Tax             $15,355

American Express              Goods and services         $12,353

Accusoft Corporation          License fee                $11,995

Microsoft                     Live meeting remote        $11,000
                              help desk and sales
                              demo software service

ADVANTA                       Cash advances for          $10,550
                              operations

Lanier Upshaw Inc.            Deposit for Accura          $9,426
                              Image

NewWave Technologies          Goods purchased             $9,079

Richard D. Willett            Health Insurance            $8,854
                              reimbursement and
                              misc. expenses


MSGI SECURITY: Amper Politziner Raises Going Concern Doubt
----------------------------------------------------------
Amper, Politziner & Mattia P.C. expressed substantial doubt about
MSGI Security Solutions Inc.'s ability to continue as a going
concern after auditing the company's financial statements for the
years ended June 30, 2006 and 2005.  The auditing firm pointed to
the company's recurring losses from operations, negative cash
flows from operations, and significant deficit in working capital.

MSGI Security Solutions Inc. reported a $17.6 million net loss on
$126,830 of revenues for the year ended June 30, 2006, compared
with a $6.8 million net loss on $631,480 of revenues for the year
ended June 30, 2005.

Revenues declined from the 2005 level of approximately $631,000
due to the timing of the orders.  The company's ability to secure
and fulfill orders was significantly impacted by the lack of
resources.

The increase in net loss is primarily due to the $504,650 decrease
in revenues, the $4 million increase in operating expenses, the
$4.4 million increase in interest expense, the $375,976 loss from
disposal of discontinued operations of AONet International S.r.A.,
and the $1.5 million increase in loss from discontinued operations
of AONet International S.r.A.

Included in operating expenses is a provision for loss on a note
receivable from the chief executive officer of the company as of
June 30, 2006.  The collection of this note by its Oct. 15, 2006
due date did not occur.  The board of directors of the company
subsequently elected to forgive such note receivable and the full
amount was written off.  There was no such cost in the prior
period.

Also included in operating expenses is a loss from impairment on
the investment in Excelsa S.p.A. of approximately $2.4 million.  
There was no such expense realized in the prior period.

At June 30, 2006, the company's balance sheet showed $2.2 million
in total assets and $8.6 million in total liabilities, resulting
in a $6.4 million total stockholders' deficit.

The company's balance sheet at June 30, 2006, also showed strained
liquidity with $63,661 in total current assets available to pay
$8.6 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the year ended June 30, 2006, are available for
free at http://researcharchives.com/t/s?17e4

                Forfeiture of 51% interest in AONet

In June 2005, the company acquired 51% interest in AONet
International S.r.L., a provider of application hosting, data
redundancy and disaster recovery services.  The purchase price for
the 51% stake was EUR1.1 million, of which EUR350,000 has been
paid through June 30, 2005 and the remainder was payable in three
equal installments of EUR250,000 due on each of Sept. 30, 2005
(paid Oct. 2, 2005) and Dec. 31, 2005 and Mar. 31, 2006.

The stock purchase agreement provided that, if the company failed
to pay any of the individual installments within 48 hours of the
applicable due date, the stock purchase agreement would be
terminated and the company would be obligated to return all
acquired equity ownership interests in AONet to the previous
owner, forfeiting any and all payments made to that date.

Effective Apr. 1, 2006, the company defaulted on its required
payments to the seller of AONet's majority interest to the
company.  As a result, the company forfeited its ownership
interest.

                    About MSGI Security

MSGI Security Solutions Inc. (Other OTC: MSGI) --
http://www.msgisecurity.com/-- provides of proprietary security  
products and services to commercial and governmental organizations
worldwide, including the U.S. Department of Homeland Security,
with a focus on cutting-edge encryption technologies for
surveillance, intelligence monitoring, and data protection.


MUSICLAND HOLDING: Court Extends Plan's Effective Date to Feb. 28
-----------------------------------------------------------------
At a hearing held last Dec. 28, 2006, the Honorable Stuart
Bernstein of the U.S. Bankruptcy Court for the Southern District
of New York rules that the deadline set forth in Musicland Holding
Corp. and its debtor-affiliates' Plan of Liquidation for the
occurrence of the Plan Effective Date is extended until
Feb. 28, 2007.

The Court also rules that the deadline set forth in the Plan for
the Confirmation Order to become a Final Order is extended until
Jan. 31, 2007.

The Court has yet to issue a ruling on the confirmation of the
Plan.  The Confirmation Hearing began on November 28, 2006.  As
noted in the transcript of the November 28 hearing, the Court
"adjourns the hearing on the feasibility" of the Plan to
Jan. 18, 2006.

Pursuant to Section 1121(d) of the Bankruptcy Code, with the
Court's consent, the Debtors had until Dec. 28, 2006, to
solicit votes to accept or reject the Plan.  As of
Jan. 2, 2007, the Debtors have not filed a motion seeking
extension of the Exclusive Solicitation Period.

The Debtors filed their Second Amended Joint Plan of Liquidation
on Oct. 13, 2006.  The Court approved the adequacy of the Amended
Disclosure Statement on the same date.

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 25; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Tracy Kirkman, Et al. Want 2 Classes Certified
-----------------------------------------------------------------
On September 9, 2005, Tracy Kirkman and Taggert Strickland, both
Musicland store managers, filed an action on behalf of themselves
and all others similarly situated against Musicland Group, Inc.,
in Alameda County Superior Court.  The Plaintiffs alleged that
they, and all others similarly situated, are not exempt from
California overtime law and that the Debtors owe them, along with
the class claimants, nearly $15,000,000 in overtime pay.

Matthew R. Bainer, Esq., at Scott Cole & Associates, APC, in
Oakland, California, relates that the Plaintiffs filed claims on
their own behalf for $106,346 and $95,508, and on behalf of all
others similarly situated, for $14,534 and $594.

The Plaintiffs allege that $1,262,418 of the Class Claim is
entitled to priority.

Mr. Bainer asserts that by filing the Class proof of claim, the
Plaintiffs initiated a contested matter under Rule 9014 of the
Federal Rules on Bankruptcy Procedure.

The Plaintiffs, on behalf of all affected store managers, ask the
U.S. Bankruptcy Court for the Southern District of New York to
certify two classes:

   1. Sam Good Class -- All persons who are or were employed in a
      store manager position by The Musicland Group, Inc., in one
      or more of The Musicland Group, Inc.'s California "Sam
      Goody" stores and who were classified as overtime-exempt
      employees at any time between September 9, 2001, and the
      present.

   2. Suncoast Motion Pictures Class -- All persons who are or
      were employed in a store manager position by The Musicland
      Group in one ore more of The Musicland Group's California
      "Suncoast Motion Picture" stores and who were classified as
      overtime-exempt employees at any time between September 9,
      2001, and the present.

Mr. Bainer notes that the unscheduled class member creditors are
estimated to number in the hundreds, but they have not received
official notice of the filing of Musicland Holding Corp. and its
debtor-affiliates' cases or notice of the Claims Bar Date.

Thus, class claimants would be denied due process of law if they
were not given the opportunity to participate in the distribution
of the Debtors' assets.

In addition, Mr. Bainer points out, the value of the claims is
extremely high and the failure to raise the matter in Court would
result in manifest injustice.

Accordingly, Mr. Bainer asserts, class certification should be
granted to:

   -- facilitate creditor compensation,
   -- achieve equitable distribution of the estate,
   -- allow the efficient management of numerous pending claims,
   -- simplify the asset distribution for the Court.

Mr. Bainer argues that the Court needs only determine if the
Representative Plaintiffs has proffered evidence to meet the
requirements of Rule 23 of the Federal Rules on Civil Procedure.

       Class Certification Is Appropriate Under Rule 23

Mr. Bainer asserts that the requirements under Rule 23(a) of the
Federal Rules of Civil Procedure for class certification have
been met:

   (a) The Proposed Classes are sufficiently numerous, estimated
       into the hundreds of individuals, that joinder of all
       members is impracticable.

   (b) There exists a common question of law and fact among class
       members.  Resolving the common questions of the Debtors'
       liability, vis-.-vis a determination of the exempt/non-
       exempt character of the class members' job duties, is the
       dominant issue in the case.

   (c) The Proposed Class Representatives' claim is typical of
       that of the Classes.  Both Plaintiffs are members of the
       putative class and possesses the same interests, suffered
       the same injury and alleges identical violations to other
       class members.

   (d) The Proposed Class Representatives will fairly and
       adequately protect class interests.  The Plaintiff
       Representatives and their counsel are willing to pursue
       the action vigorously on behalf of the classes, and have
       thoroughly investigated the claims of the classes.

"[A] failure to bring the unnamed class members before this
Court, prior to a distribution of Musicland's assets, would
likely rob these individuals of their opportunity to see any
recovery for their claims," Mr. Bainer contends.  "There could be
no greater 'unfair adjudication' than to unjustly enrich some of
Musicland's creditors at the expense of others."

Mr. Bainer notes that additional common issues among the classes
are:

   -- whether the Debtors acted in "good faith in classifying
      class members as exempt workers;

   -- whether California Labor Code Section 558 "underpayment"
      penalties apply;

   -- whether punitive damages are recoverable;

   -- the applicable statute of limitations of California Labor
      Code Section 226.7 and 512; and

   -- whether the exemption of class members from overtime pay
      constitutes an "unfair business practice" under California
      Bus. & Prof. Code Section 17200, et seq.

The Plaintiffs seek class certification based on the Debtors'
policy of categorically treating all class members as exempt
based on job title or other criteria which do not demand an
individual analysis of class members' circumstances, Mr. Bainer
clarifies.  "Consideration of the amount of time particular
employees spend on work tasks is not a relevant concern at the
class certification stage yet."

Individual issues of the amount of time spent on work task will
exist whether or not the classes are certified, Mr. Bainer says.
A multitude of "innovative tools" are available to manage any
individual issues, and those tools need be devised and utilized
just once of the action proceeds on a class basis, Mr. Bainer
emphasizes.

A class action is the superior method of adjudicating the
Plaintiffs' claims, Mr. Bainer maintains.  "The only alternatives
to certifying this class are to force hundreds of [the Debtors']
Store Managers to abandon their legal rights altogether."

                  About Musicland Holding

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 25; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NORTH AMERICA STEAMSHIPS: Chapter 15 Petition Summary
-----------------------------------------------------
Petitioner: Wolridge Mahon Limited
            Trustee

Debtor: North America Steamships Ltd.
        aka N.A.S.L.
        c/o Wolrige Mahon Limited
        9th Floor, 400 Burrard Street
        Vancouver, British Columbia V6C 3B7
        Canada

Case No.: 06-13077

Type of Business: North America Steamships Ltd. develops sea
                  transportation services for cargo between
                  Canadian, U.S. West Coasts, and the Far East
                  countries.  The company is constantly shipping
                  bulk sulphur from Vancouver and U.S. West Coast
                  ports to China.   See http://www.nasl.bc.ca/

Chapter 15 Petition Date: December 22, 2006

Court: Southern District of New York (Manhattan)

Judge: Robert D. Drain

Petitioner's Counsel: Garry M. Graber, Esq.
                      Julia S. Kreher, Esq.
                      Hodgson, Russ LLP
                      1800 One M & T Plaza, Suite 2000
                      Buffalo, NY 14203
                      Tel: (716) 856-4000
                      Fax: (716) 849-0349

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million


NVF COMPANY: Wants Exclusive Plan-Filing Period Moved to Feb. 16
----------------------------------------------------------------
NVF Company and its debtor-affiliates ask the U.S. Bankruptcy
Court for the District of Delaware to extend their exclusive
periods to file a chapter 11 plan of reorganization until Feb. 16,
2007, and solicit acceptances of that Plan until Apr. 18, 2007.

This is the Debtors' sixth request to extend the Exclusive
Periods.

The Debtors seek the extensions to:

   a) avoid premature formulation of a chapter 11 plan or
      reorganization; and

   b) ensure that the formulated plan takes into account the best
      interests of the Debtors, their creditors and estates.

The Court will convene a hearing on Jan. 22, 2007, at 9:30 a.m. to
consider the Debtors' request.

Objections to the Debtors' extension motion are due on Jan. 12,
2007, at 4:00 p.m.

Based in Yorklyn, Delaware, NVF Company -- http://www.nvf.com/--   
manufactures thermoset composites (glass, Kevlar), vulcanized
fiber, custom containers, circuitry materials, custom fabrication,
and welding products.  The Company along with its wholly owned
subsidiary, Parsons Paper Company Inc., filed for chapter 11
protection on June 20, 2005 (Bankr. D. Del. Case Nos. 05-11727 and
05-11728).  Rebecca L. Booth, Esq., at Richards, Layton & Finger,
P.A., represents the Debtors in their restructuring efforts.
Elizabeth A. Wilburn, Esq., and Jason W. Staib, Esq., at Blank
Rome LLP represent the Official Committee of Unsecured Creditors.
When the Debtors filed for protection from their creditors, they
listed estimated assets between $10 million to $50 million and
estimated debts of more than $100 million.


OWENS CORNING: Court Okays Stipulation Resolving Mayer's Claim
--------------------------------------------------------------
The Honorable Judith K. Fitzgerald approved the stipulation of
Owens Corning and its debtor affiliates and Peter and Tracy Mayer.

The Debtors entered into a stipulation with Peter and Tracy Mayer
resolving the Mayers' Claim No. 3062 for $1,000,000, to avoid
further litigation.

The parties agree to allow the Claim as a general unsecured, non-
priority claim for $25,000 solely against Owens Corning.

The Mayers agree to discontinue as settled their action pending
before the U.S. District Court for the District of New Jersey,
Civil Action No. 01-496, with respect to Owens Corning, without
prejudice to their rights to prosecute the action against any
other defendants.  The Mayers fully discharge and forever release
Owens Corning from any and all obligations and liability.

Headquartered in Toledo, Ohio, Owens Corning (OTC: OWENQ.OB)
-- http://www.owenscorning.com/-- manufactures fiberglass  
insulation, roofing materials, vinyl windows and siding, patio
doors, rain gutters and downspouts.  The company filed for
chapter 11 protection on Oct. 5, 2000 (Bankr. Del. Case. No.
00-03837).  Norman L. Pernick, Esq., at Saul Ewing LLP, represents
the Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors.  James J. McMonagle serves as the Legal Representative
for Future Claimants and is represented by Edmund M. Emrich, Esq.,
at Kaye Scholer LLP. (Owens Corning Bankruptcy News, Issue No.
147; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


OWENS CORNING: Wants Burchfield Whitmire Settlement Approved
------------------------------------------------------------
Owens Corning and its debtor-affiliates ask the Honorable Judith
K. Fitzgerald of the U.S. Bankruptcy Court for the District of
Delaware to approve a Settlement Agreement and Joint Stipulation
of Dismissal entered between Charles Stein and Michael Thaman, on
one hand, and Michael Burchfield and R.Q. Whitmire, on the other
hand.

The Settlement Agreement resolves the adversary cases filed by the
parties against one another, and the claims filed by
Messrs. Burchfield and Whitmire against the Debtors.

Representing the Debtors' counsel, Jeremy W. Ryan, Esq., at Saul
Ewing LLP, in Wilmington, Delaware, relates that the parties'
dispute started in the last quarter of 2000 when Owens Corning
sought permission from the Bankruptcy Court overseeing its
Chapter 11 cases to consummate a merger with an on-line company to
form and operate a new business.

In anticipation of the merger, a holding company, ServiceLane
Holdings Corporation, was formed.  ServiceLane Holdings' operating
subsidiary, ServiceLane.com, Inc., was incorporated in Delaware on
Dec. 18, 2000.

Messrs. Stein and Thaman served on ServiceLane's board of
directors.  Mr. Stein was also ServiceLane's chief executive
officer.

In December 2000, Messrs. Burchfield and Whitmire ended their
employment with Owens Corning and began their employment with
ServiceLane.  ServiceLane formally remained in business from
December 2000 until July 2001.

On July 25, 2001, ServiceLane Holdings Corporation and ServiceLane
initiated separate Chapter 7 proceedings in the U.S. Bankruptcy
Court for the Northern District of Texas.  Thereafter,
Messrs. Burchfield and Whitmire commenced a series of actions
against, among others, Owens Corning, Messrs. Thaman and
Mr. Stein.

In 2001, Messrs. Burchfield and Whitmire filed an action in Texas
state court against:

   * Mr. Stein;

   * Glen Hiner, Owens Corning's former CEO;

   * Domenico Cecere, Owens Corning's former CFO and one of the
     original members of ServiceLane's board of directors;

   * David Brown, Owens Corning's CEO; and

   * L. Leonard Blaylock, former ServiceLane president and member
     of the ServiceLane board.

In the Texas Action, Messrs. Burchfield and Whitmire alleged that
each of the defendants breached fiduciary duties owed to
Messrs. Burchfield and Whitmire.  The Texas Action was removed to
the U.S. District Court for the Northern District of Texas.  The
Texas Action was dismissed in February 2002.

Messrs. Burchfield and Whitmire filed proofs of claim in the
Debtors' cases asserting claims predicated on fraud and
misrepresentation.

In 2003, Messrs. Burchfield and Whitmire, on their own behalf and
on behalf of ServiceLane, filed suit against Messrs. Thaman and
Stein in the U.S. District Court for the Northern District of
Ohio, alleging that Messrs. Thaman and Stein breached their
fiduciary duty to ServiceLane.  Messrs. Burchfield and Whitmire
voluntarily dismissed the Ohio Action in February 2004.

Owens Corning and Messrs. Thaman and Stein filed separate
adversary actions in the Debtors' Chapter 11 cases against
Messrs. Burchfield and Whitmire.

The Bankruptcy Court consolidated the adversary cases and
litigation ensued.  Messrs. Burchfield and Whitmire, in their
counterclaim, assert compensatory damages totaling $32,000,000.
The Counterclaim was dismissed in December 2005.

Mr. Stein and Owens Corning also filed separate motions for
summary judgment seeking a declaratory relief and dismissal of all
claims pending against them in the Consolidated Adversary Case.  
The proceedings with respect to the summary judgment requests are
still pending.

In September 2006, the parties agreed to settle, and advised
Judge Fitzgerald to suspend all matters pending final
documentation and Court approval of the Settlement Agreement.

The parties agree that Owens Corning, on its own behalf and on
behalf of Messrs. Thaman and Stein, will pay Messrs. Burchfield
and Whitmire $200,000 as combined settlement amount.  The parties
agree to release each other from obligations and liability
relating to the disputes.

Headquartered in Toledo, Ohio, Owens Corning (OTC: OWENQ.OB)
-- http://www.owenscorning.com/-- manufactures fiberglass  
insulation, roofing materials, vinyl windows and siding, patio
doors, rain gutters and downspouts.  The company filed for
chapter 11 protection on Oct. 5, 2000 (Bankr. Del. Case. No.
00-03837).  Norman L. Pernick, Esq., at Saul Ewing LLP, represents
the Debtors.  Elihu Inselbuch, Esq., at Caplin & Drysdale,
Chartered, represents the Official Committee of Asbestos
Creditors.  James J. McMonagle serves as the Legal Representative
for Future Claimants and is represented by Edmund M. Emrich, Esq.,
at Kaye Scholer LLP. (Owens Corning Bankruptcy News, Issue No.
147; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


PIEDMONT/HAWTHORNE: Moody's Rates Proposed Credit Facility at B1
----------------------------------------------------------------
Moody's Investors Service has assigned a B1 rating to Piedmont
Hawthorne Holdings Inc.'s proposed amended senior secured credit
facilities, consisting of a revolving credit facility due 2009 and
a term loan due 2010, issued by PHHI's financing subsidiary MRO
Acquisitions, LLC.  At the same time, Moody's has affirmed MRO
Acquisitions' B1 Corporate Family Rating. The ratings outlook is
stable.

The purpose of the amended credit facility is to refinance
Piedmont's current debt structure.  The company will repay
borrowings under its existing revolving credit facility and second
lien term loan with a tack-on to its existing term loan facility
due 2010.  The company is maintaining its $60 million revolving
credit facility due 2009.  There was no material change in total
debt resulting from this re-financing.

The ratings reflect the company's high debt levels and leverage,
as well as concerns about the stability of free cash flows and the
company's ability to maintain operating margins in the competitive
aircraft services sector.  Moody's also notes past and the
potential for future acquisitions.  The company's current credit
metrics relating to leverage and cash flows are weak for the B1
rating, but Moody's expects these measures to improve to levels
commensurate with this rating through 2007.  The ratings also
consider PHHI's leadership position in the general aviation
services sector, positive industry fundamentals driving near-term
demand for aircraft services, and relatively strong and reliable
levels of retained cash flow generation.

These ratings have been assigned:

MRO Acquisitions, LLC

Senior secured revolving
   credit facility due 2009 at B1 -- LGD3 (30%)

Senior secured term loan due 2010 at B1 -- LGD3 (30%)

The following ratings have been withdrawn:

MRO Acquisitions, LLC

Senior secured revolving credit facility due 2009, previously
rated Ba3

Senior secured term loan due 2010, previously rated Ba3

Second lien term loan due 2011, previously rated B3

Headquartered in Tempe, Arizona, Piedmont Hawthorne Holdings Inc.,
under its trade name Landmark Aviation, is a leading provider of
Maintenance, Repair and Overhaul, Airport Fixed Base Operations,
and Aircraft Completion & Modification services to the general
aviation industry with facilities located throughout North
America.  MRO Acquisitions, LLC is a debt-issuing subsidiary of
PHHI.  The company had LTM September 2006 revenue of $838 million.


PSIVIDA LIMITED: Lender Agrees to Forbearance on Defaults
----------------------------------------------------------
pSivida Limited entered into an agreement with its principal
institutional lender whereby the lender has agreed to a general
forbearance with respect to any defaults through to and including
the earlier of the closing of the Nordic Biotech Advisors (Nordic)
transaction or March 31, 2007, subject to the satisfaction of
closing conditions.

The lender agreed:

   -- to allow the Company to transfer or grant security
      interests in the Company's MedidurTM and Mifepristone
      assets which would be necessary to complete specified
      financing transactions with Nordic;

   -- to forego the interest payment due on Jan. 2, 2007, in
      favor of adding approximately $309,000 (AU$391,000) to
      the principal amount of the loan (representing the value
      of the American Depository Receipts (ADSs) with which the
      Company would have issued to satisfy the payment had it
      met certain conditions allowing it to pay with ADSs);

   -- to defer the Company's scheduled payment of $800,000
      (AU$1 million) for prior registration delay penalties
      until the earlier of the closing of the Nordic transaction
      or March 31, 2007;

   -- to forgive $770,000 (AU$973,000) of additional registration
      delay penalties accruing through the earlier of the closing
      of the Nordic transaction or March 31, 2007;

   -- to amend the Company's loan covenants to release it from
      the obligation to satisfy a minimum cash balance test of
      30% of the outstanding principal until March 31, 2007; and

   -- that the Company would have until ten days after the
      earlier of the closing of the Nordic transaction or
      March 31, 2007 to file a registration statement with
      respect to securities issuable on exercise of the lender's
      warrants.

In return for the foregoing, the Company has issued to the lender
warrants to purchase 1.5 million ADSs over five years with an
exercise price of $2.00 per ADS and has agreed, upon receipt of
required approvals, including shareholder approval, and
satisfaction of other standard conditions, to issue additional
warrants to purchase 4.0 million ADSs over five years with an
exercise of $2.00, subject to adjustment based on the final terms
of the Company's transaction with Nordic.

The Company expects to close definitive documents with Nordic
Biotech Advisors for a $4 million (AU$5.1 million) corporate
investment in the Company and a $22 million (AU$27.8 million)
investment over time in a 'Special Purpose Vehicle' that is
expected to fully fund the Company's portion of costs to develop
MedidurTM for the treatment of the chronic eye disease diabetic
macular edema.

                      About pSivida Limited

Headquartered in Perth, Australia, pSivida Limited (NASDAQ:PSDV)
(ASX:PSD) (Xetra:PSI) -- http://www.psivida.com/-- is an  
Australian is committed to biomedical applications of nano-
technology and has as its core focus the development and
commercialization of drug delivery products in the healthcare
sector, initially in ophthalmology and oncology.  The company's
shares are listed on the Australian Securities Exchange, the
NASDAQ Global Market, the Frankfurt Stock Exchange, and London's
OFEX International Market Service.  

pSivida also operates subsidiaries in the United Kingdom,
Singapore, Australia, and the United States.

                        *     *     *

                    Going Concern Doubt

The company noted that its financial statements have been
prepared assuming that it will continue as a going concern.

After auditing the company's consolidated balance sheet as of
June 30, 2006, and 2005, Deloitte Touche Tohmatsu, Chartered
Accountants said that as of Oct. 31, 2006, pSivida has
determined there may be a risk of default associated with
maintaining the US$1.5 million minimum cash balance.  In the
event of a default the note holder is entitled to call the full
value of the liability.  This risk of default, together with the
company's recurring losses from operations and negative cash
flows from operations, raise substantial doubt about its ability
to continue as a going concern.

Deloitte notes that the financial statements do not include any
adjustments that might result from the outcome of this
uncertainty.


RESIDENTIAL ACCREDIT: Fitch Puts Low-B Ratings on Two Class Certs.
------------------------------------------------------------------
Fitch rates Residential Accredit Loans, Inc. mortgage pass-through
certificates, series 2006-QS17, as:

    -- $502,637,265 classes A-1 through A-11, A-P, A-V, R-I and
       R-II certificates (senior certificates) 'AAA';

    -- $17,452,600 class M-1 'AA';

    -- $5,638,600 class M-2 'A';

    -- $4,296,000 class M-3 'BBB'.

In addition, these privately offered subordinate certificates are
rated by Fitch as:

    -- $2,685,000 class B-1 'BB';
    -- $2,148,100 class B-2 'B'.

The $2,148,102 class B-3 is not rated by Fitch.

The 'AAA' rating on the senior certificates reflects the 6.40%
subordination provided by the 3.25% 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 (CE) 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 (December 1, 2006), the mortgage pool
consists of 2,192 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
$537,005,668.  The mortgage pool has a weighted average original
loan-to-value ratio of 76.9%.  The pool has a weighted average
FICO score of 709, and approximately 40.7% and 16.9% of the
mortgage loans possess FICO scores greater than or equal to 720
and less than 660, respectively.  Equity refinance loans account
for 29.1%, and second homes account for 6.5%.  The average loan
balance of the loans in the pool is $244,984.  The three states
that represent the largest portion of the loans in the pool are
California (20.1%), Florida (12.6%) and Texas (6.5%).

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 25% 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 7.6% 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 24.9% of the mortgage loans were purchased from
SunTrust Mortgage, Inc., an unaffiliated seller. Except as
described in the preceding sentence, no unaffiliated seller sold
more than 7.3% of the mortgage loans to Residential Funding.  
Approximately 40.9% of the mortgage loans are being subserviced by
Homecomings, a wholly-owned subsidiary of Residential Funding,
approximately 12.5% of the mortgage loans are being subserviced by
GMAC Mortgage, LLC, an affiliate of Residential Funding and
approximately 24.9% of the mortgage loans are being subserviced by
SunTrust Mortgage, Inc.

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
(1) 'high-cost' or 'covered' loans or (2) 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.


ROUGE INDUSTRIES: Wants Plan-Filing Period Extended to Jan. 19
--------------------------------------------------------------
Rouge Industries Inc. and its debtor-affiliates ask the United
States Bankruptcy Court for the District of Delaware to further
extend their exclusive period to file a plan of liquidation
through and including Jan. 19, 2007.

The Debtors also ask the Court to extend their exclusive period to
to solicit acceptances of that Plan until Mar. 19, 2007.

The Debtors have already filed 12 prior motions seeking to extend
the Exclusive Periods.

The Debtors tell the Court that the size and complexity of their
cases warrant the extension.  The Debtors' chapter 11 cases
involve more than a thousand claims, which assert liabilities in
excess of $1.3 billion.  

Additionally, the Debtors' bankruptcy cases have raised numerous
complex issues, the resolution of which is important to the
Debtors' ability to propose and consummate a chapter 11 plan.  The
complex issues have included, among other things, matters relating
to the Debtors' relationship with Ford Motor Company and matters
related to claims for benefits and compensation made by the
Debtors' unionized and salaried former employees.  

The Court will convene a hearing on Jan. 17, 2007, at 3:00 p.m.,
Eastern Time, to consider the Debtors' request.

Objections to the requested extensions are due on Jan. 10, 2007,
at 4:00 p.m., Eastern Time.

Headquartered in Dearborn, Michigan, Rouge Industries Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. D. Del. Case No. 03-13272).  
Adam G. Landis, Esq., at Landis Rath & Cobb LLP and Alicia Beth
Davis, Esq., at Morris Nichols Arsht & Tunnell represent the
Debtors.  Kurt F. Gwynne, Esq., and Richard Allen Keuler, Jr.,
Esq., at Reed Smith LLP serve as counsel to the Official Committee
of Unsecured Creditors.  When the Debtors filed for protection
from their creditors, they listed $558,131,000 in total assets and
$558,131,000 in total debts.

On Dec. 19, 2003, the Court approved the sale of substantially all
of the Debtors' assets to SeverStal N.A. for $285.5 million.  The
Asset Sale closed on Jan. 30, 2005.


SAINT VINCENTS: Can Assume and Assign Queens Tower Lease
--------------------------------------------------------
Saint Vincents Catholic Medical Center, as successor in interest
to Catholic Medical Center of Brooklyn and Queens, Inc., and
Queens Office Tower Limited Partnership are parties to a lease
agreement dated as of June 21, 1996.

Pursuant to the Lease, the Debtors occupy office space on the
entire third and fourth floors of a nonresidential real property
located at 95-25 Queens Boulevard, in Rego Park, New York.  The
Debtors utilize the Fourth Floor to house the corporate offices
of their home health care agency.

The Debtors also lease from Queens Office:

   (a) part of the first floor and the entire second floor of
       Queens Tower pursuant to certain standard form of office
       lease, dated November 12, 1993; and

   (b) part of the fifth floor pursuant to a certain standard
       form of office lease, dated September 13, 1999.

In light of the sale of Mary Immaculate Hospital, Queens, St.
John's Hospital, Queens, and related assets and operations to
Caritas Health Care Planning, Inc., SVCMC and Caritas entered
into a license agreement granting Caritas a revocable license for
use of a majority of the Third Floor of Queens Tower as an
administrative office.  SVCMC reserved from the Licensed Area a
small space on the Third Floor to house its Professional Registry
group.  

In consideration for the license to use the Licensed Area on a
month-to-month basis, Caritas agreed to pay:

    -- $34,957 per month during the period commencing October 1,
       2006;

    -- $49,522 per month during the period commencing January 1,
       2007 or, if the fixed rent under the Lease should be in an
       amount other than $106,271 per month, an amount equal to
       46.6% of the monthly rent;

    -- to SVCMC an amount equal to 46.6% of additional rent
       payable by SVCMC as tenant under the Lease and all other
       charges other than additional rent payable by SVCMC for
       services provided to the Licensed Area; and

    -- its share of telephone and computer charges and office
       supplies.

Pursuant to the order approving the sale of the Queens Assets, as
of the closing date of the Queens Sale, the Lease, the First and
Second Floor Lease, and the Fifth Floor Lease will be assigned to
Caritas in their entirety unless SVCMC, Queens Office, and
Caritas agree to any modifications.

Mr. Troop discloses that SVCMC wants to retain possession of the
Fourth Floor of the Premises and assign only the Third Floor of
the Premises to Caritas.  Caritas is amenable to that.

According to Mr. Troop, the Debtors believe it is necessary to
extend and assume the Lease prior to its expiration on Dec. 31,
2006, so that it may be assigned, in part, to Caritas on or
before the Closing Date.  

After arm's-length negotiations, the Debtors reached an agreement
in principle with Queens Office, which provides that:

   (1) the Debtors will extend the Lease for a term of three
       years and nine months beginning January 1, 2007;

   (2) the Debtors have the option to terminate the Lease as to
       each or both of the Third Floor and the Fourth Floor upon
       six months notice to Queens Office;

   (3) the Debtors may assign the Third Floor to Caritas, subject
       to the Court's approval and the execution and delivery to
       Queens Office by Caritas of an assumption agreement;

   (4) upon the assignment of the Third Floor to Caritas, the
       Lease, will be deemed to be subdivided into two separate
       leases, one in favor of Caritas, covering the Third Floor,
       and one in favor of SVCMC, covering the Fourth Floor;

   (5) upon the assignment of the Third Floor to Caritas, SVCMC
       will be relieved of its obligations under the Lease, as
       amended, with respect to the Third Floor; and

   (6) rent under the Amended Lease for the Third and Fourth
       Floors will be $106,000 per month plus additional rent
       comprised of, among other things, utility and repair
       charges.  

As a result of the assignment, each of SVCMC and Caritas will be
obligated for one-half of the fixed rent reserved by the Amended
Lease.

A full-text copy of the Amendment to the Lease is available for
free at http://ResearchArchives.com/t/s?1793  

Mr. Troop explains that the request should be granted because:

     * SVCMC will be released from all future obligations
       relating to the Third Floor and will only remain liable
       for the new Fourth Floor Lease;

     * the assumption of the Lease and assignment of the new
       Third Floor Lease will facilitate the transfer of
       operations relating to the Queens Assets to Caritas as
       contemplated by the Queens Purchase Agreement;

     * the Debtors have determined that their continued
       occupation of the Fourth Floor for the next three years
       will avoid the significant costs that would accompany
       relocation to a new, suitable location and any
       interruption in the administrative affairs of the home
       health care office which would accompany a relocation; and

     * the Debtors believe that, as compared with other leases
       available in the marketplace, the rental obligations under
       the Lease, as amended, are reasonably priced, especially
       in light of the early termination and assignment options.

The U.S. Bankruptcy Court for the Southern District of New York,
on Dec. 21, 2006, gave the Debtors authority to:

   (i) extend the Lease, as amended;
  (ii) assume the Amended Lease; and
(iii) assign a portion of the Amended Lease to Caritas.

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


SAINT VINCENTS: Exclusive Plan-Filing Period Extended to Jan. 19
-----------------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York, its debtor-
affiliates and the Official Committee of Unsecured Creditors, in
stipulation approved by the U.S. Bankruptcy Court for the Southern
District of New York, agree that:

   (1) the Debtors' exclusive period to file a plan of
       reorganization is extended through and including
       Jan. 19, 2007;

   (2) the Debtors' exclusive period to solicit acceptances of
       the reorganization plan is extended through and including
       April 16; and

   (3) upon the filing of a certification of consent by the
       Debtors and the Creditors Committee, the Exclusive Plan
       Filing Period will be automatically extended to January 31
       and the Exclusive Solicitation Period to April 28.

As reported in the Troubled Company Reporter on Dec. 27, 2006, the
Debtors asked the Court to further extend the period within which
they have the exclusive rights to:

    a) file a plan of reorganization, to and including  
       Jan. 31, 2007; and

    b) solicit acceptances of that plan, to and including
       May 31, 2007.

Deryck A. Palmer, Esq., at Weil, Gotshal & Manges LLP, in New  
York, related that many of the facts cited by the Debtors for the  
prior extensions continue to exist and support the further  
extension of Exclusive Periods.  Among others, the Debtors:

   (1) have made and continue to make good faith progress toward  
       their reorganization and emergence from Chapter 11,  
       including working positively to repair fractured  
       relationships with parties-in-interest and putting in  
       place postpetition financing necessary for confident  
       postpetition operations;

   (2) continue to refine the business plan that will provide the  
       basis for a plan of reorganization that appropriately  
       balances creditor recoveries with establishing a viable  
       and vibrant post-reorganization health care system that  
       will continue its mission in a financially stable  
       environment;

   (3) have made substantial progress in turning around their  
       operations;

   (4) have pursued, and continue to pursue, opportunities to  
       identify and dispose of assets that are not the core  
       assets around which to reorganize; and

   (5) have met and continue to meet regularly with the official  
       committees about the detailed terms of a plan and the  
       assumptions underlying the delicate balance between  
       creditor distributions and future viability of the health  
       care institution that will be embodied in any plan of
       reorganization;

   (6) have been negotiating and making progress with other  
       constituencies, including the Pension Benefit Guaranty  
       Corporation and the claims traders; and

   (7) have been and continue to pay all of their bills as they  
       become due.   

Mr. Palmer told the Court that a number of contingencies remain  
that are being worked through in the Debtors' cases.  The Debtors  
are confident that the contingencies will be satisfied in the  
near future and believe that they will be in a position to filing  
a plan of reorganization and disclosure statement by
Jan. 31, 2007.   

According to Mr. Palmer, the Debtors sought the extension so that  
negotiations with various creditor constituencies can continue  
with the hope of achieving a mutually acceptable plan of  
reorganization.  In particular, the Official Committee of Tort  
Claimants requested that the Debtors seek a further extension of  
the Exclusive Periods.   Mr. Palmer assures the Court that
extending the Exclusive Periods will not unfairly augment the
Debtors' leverage in negotiating a reorganization plan.   

The Tort Claimants Committee assented to the Debtors' request for  
an extension.

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


SERACARE LIFE: Files Amended Disclosure Statement in California
---------------------------------------------------------------
SeraCare Life Sciences, Inc., and the Ad Hoc Committee of
Equityholders submitted to the U.S. Bankruptcy Court for the
Southern District of California an Amended Disclosure Statement
explaining their Amended Joint Plan of Reorganization.

The Ad Hoc Committee is comprised of:

    (i) The Wolfson Group, with approximately 3.5% of the shares,

   (ii) Harbinger Capital Partners Master Fund I Ltd. and
        Harbinger Capital Partners Special Situations Fund L.P.,
        with approximately 20.7% of the shares, and

  (iii) Black Horse Capital LP, with approximately 7.3% of the
        shares.

                      Overview of the Plan

The Plan proposes that the Debtor reorganize, and that current
shareholders fund a restructuring of the company's balance sheet.

The Debtor says that its proposed Joint Plan is based on a rights
offering.  The rights offering will be available to current
shareholders on a pro rata basis.  Each shareholder will be
entitled to purchase a pro rata share, out of all current
shareholders, of 4,250,000 new shares to be issued at a price of
$4.75 per share.

The Debtor discloses that in connection with the Plan, members of
the Ad Hoc Committee have committed to fully participate in the
Rights Offering.  In addition, members of the Ad Hoc Committee
will act as backstop purchasers, and have committed to purchase
all unexercised subscription rights.

                        Treatment of Claims

Under the Plan, Administrative Claims, Priority Tax Claims,
Priority Claims, and Bank Claims, will be paid in full and in
cash.

Junior Secured Note Claims will be paid in full and in cash
subject to defenses, setoffs and counterclaims.

Miscellaneous Secured Claims will be assumed by Reorganized
SeraCare subject to defenses, setoffs and counterclaims.  Commerce
Bank Claims will also be assumed by Reorganized SeraCare.  
Acceleration of these two claims will be deemed rescinded as of
the effective date.

General Unsecured Claims will be paid in full and in cash with
interest.

Governmental Section 510(b) Claims will also be paid in full and
in cash.

Holders Nongovernmental Section 510(b) Claims will, at the
election of the Plan Proponents, either be:

    (a) paid in full and in cash of the allowed or estimated
        amount of the claims, or

    (b) receive Initial Reorganized SeraCAre Common Stock with a
        value equal to the product of:

            * the allowed or estimated amount of the claim divided
              by,

            * the sum of the total estimated and allowed amounts
              of Nongovernmental Claims and net enterprise value
              of the Debtor as of the confirmation date.

The Debtor relates that if the election is made to pay
Nongovernmental Claims in cash, holders of Common-Stock Interest
will receive, for each common stock:

    (i) one share of the Initial Reorganized SeraCare Common Stock
        and

   (ii) their Pro Rata Share of the Subscription Rights.

Otherwise, holders will receive their pro rate share of all
Initial Reorganized SeraCare Common Stock not distributed to
Nongovernmental Claim holders and their pro rata share of the
Subscription Rights.

On the Effective Date, all Common-Stock Option Interests will be
exchanged, as permitted by the terms of the relevant option
agreements and option plans, for corresponding options of
Reorganized SeraCare.

A full-text copy of the Amended Disclosure Statement is available
for a fee at:


                       About SeraCare Life

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


SIRICOMM INC: BKD LLP Raises Going Concern Doubt
------------------------------------------------
BKD, LLP, in Joplin, Missouri, expressed substantial doubt about
SiriCOMM Inc.'s ability to continue as a going concern after
auditing the company's financial statements for the years ended
Sept. 30, 2006, and 2005.  The auditing firm pointed to the
company's recurring losses and negative operating cash flows.

SiriCOMM Inc. reported a $7.2 million net loss on $1.1 million of
revenues for the year ended Sept. 30, 2006, compared with a
$3.2 million net loss on $193,741 of revenues for the year ended
Sept. 30, 2005.

Revenues were solely derived from the company's offering of
InTouch internet service.  The increase in revenues is largely a
result of the continued expansion of the company's network and
"word of mouth" advertising.

The increase in net loss is mainly due to the $4.4 million
increase in operating expenses, and the $370,485 increase in
interest expense.  The $4.4 million in operating expense includes
as $1.7 million impairment loss.

During the fourth quarter, the company determined that its
intangible asset relating to prepaid bandwidth may be subject to
impairment, due to a decreased market price.  The company compared
the cost allocated to the prepaid asset with the cost to purchase
bandwidth on the open market and concluded the carrying value of
the asset should be reduced to zero and an impairment loss of
$1,729,223 recognized as an expense.  The company did not have any
losses due to impairment in 2005.

For fiscal year 2006, net interest expense was $374,508 as
compared to $4,023 during 2005.  The increase in interest expense
is primarily attributable to loan costs incurred from the
Sunflower Capital bridge loan.

At Sept. 30, 2006, the company's balance sheet showed $5.1 million
in total assets, $1.5 million in total liabilities, and
$3.6 million in total stockholders' equity.

The company's balance sheet at Sept. 30, 2006, also showed
strained liquidity with $1 million in current assets, available to
pay $1.2 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the year ended Sept. 30, 2006, are available for
free at http://researcharchives.com/t/s?17ed

                        About SiriCOMM Inc.

SiriCOMM Inc. (OTC BB: SIRC.OB) -- http://www.siricomm.com/-- is  
an application service provider specializing in wireless internet
connectivity and productivity applications tailored to the
transportation industry.   The company uses Wi-Fi and radio-
frequency technologies to create hot spots at locations convenient
to highway travel.


SMART PAPERS: Sells Assets to Plainfield & Emerges from Chapter 11
------------------------------------------------------------------
SMART Papers has a new owner, Plainfield Asset Management of
Greenwich, Connecticut, and is expanding production on all three
papermaking machines at its Hamilton, Ohio, manufacturing center.

As reported in the Troubled Company Reporter on Dec. 22, 2006,
the U.S. Bankruptcy Court for the District of Delaware has
approved and confirmed SMART Papers LLC's business reorganization
plan, paving the way for emergence from Chapter 11 upon the
company's sale to an affiliate of Plainfield Asset Management LLC,
a Greenwich, Connecticut-based investment advisor.

The SMART Papers Plan of Reorganization was approved by the court
on Dec. 19, 2006, in Wilmington, Delaware.  The plan was accepted
by an overwhelming majority of voting creditors.  It is also
supported by SMART Papers' secured lender, its unsecured creditors
committee, Memphis-based International Paper Co. and many other
important creditor groups.

With fresh capitalization and ownership, the company is now
producing its full line of premium cast-coated, matte-coated and
uncoated text, cover and writing papers.  SMART Papers employs 520
in various manufacturing, sales, customer service and management
positions, primarily in Hamilton, north of Cincinnati.

"SMART Papers has a rich history and well-established brands that
bring unique value and benefit to the North American printing
industry and their customers," said Eric Reehl, Managing Director
at Plainfield Asset Management and board member of the new SMART
Papers.

"With disciplined production of branded products and an intense
focus on customer needs, we believe SMART Papers is on its way to
reclaiming its role as a top supplier in the North American
premium paper markets," Mr. Reehl added.  "We believe that with
Plainfield's commitment and deep resources, SMART Papers will be
positioned to take advantage of the changes underway in the
printing papers market."

SMART Papers' premium coated and uncoated papers are used daily by
large, mid-size and small commercial printers and other customers.  
Product is available to nearly all North American cities in two
business days or less from its distribution centers in Hamilton
and metropolitan Los Angeles.

SMART Papers CEO and President Tim Needham said the company owes
its recent exit from Chapter 11 creditor protection -- its renewed
viability and jobs -- to Plainfield, an investment advisory firm
with more than $2 billion in capital.

"We literally wouldn't be here without their support, and without
the support of our dedicated employees," Mr. Needham said.  He
also thanked customers for their patience through the company's
reorganization, which was approved by a federal judge Dec. 19,
2006.

Mr. Needham said SMART Papers is now well capitalized to expand
sales and distribution of its products to North American paper
merchants, printers, designers and corporations.  The company has
capacity to produce 120,000 tons of paper annually on its three
paper machines and 22 casting drums.

                       About Smart Papers

Headquartered in Hamilton, Ohio, Premium Papers Holdco, LLC, --
http://www.smartpapers.com/-- is an independent manufacturer and    
marketer of a wide variety of premium coated and uncoated printing
papers, such as Kromekote, Knightkote, and Carnival.   The Company
and its debtor-affiliates, SMART Papers LLC and PF Papers LLC,
filed for chapter 11 protection on March 21, 2006 (Bankr.
D. Del. Case No. 06-10269).  Ian S. Fredericks, Esq., at Young,
Conaway, Stargatt & Taylor, LLP, represents the Debtors.  When the
Debtors filed for protection from their creditors, they listed
unknown estimated assets and $10 million to $50 million estimated
debts.


SOUNDVIEW HOME: Fitch Rates Privately Offered Class Certs. at BB+
-----------------------------------------------------------------
Fitch has rated the Soundview Home Loan Trust 2006-EQ2, asset-
backed certificates, series 2006-EQ2 Trust as:

    -- $669,983,000 classes A-1, A-2, A-3, and A-4 'AAA';
    -- $30,055,000 class M-1 'AA+';
    -- $26,298,000 class M-2 'AA';
    -- $15,446,000 class M-3 'AA-';
    -- $15,028,000 class M-4 'A+';
    -- $13,358,000 class M-5 'A';
    -- $12,523,000 class M-6 'A-';
    -- $10,436,000 class M-7 'BBB+';
    -- $6,262,000 class M-8 'BBB';
    -- $8,349,000 class M-9 'BBB-';
    -- $10,432,000 privately offered class M-10 'BB+'.

The 'AAA' rating on the senior certificates reflects the 19.75%
total credit enhancement provided by the 3.60% class M-1, 3.15%
class M-2, 1.85% class M-3, 1.80% class M-4, 1.60% class M-5,
1.50% class M-6, 1.25% class M-7, 0.75% class M-8, 1.00% class M-
9, 1.25% class M-10 and 2.00% initial overcollateralization.  All
certificates have the benefit of monthly excess cashflow to absorb
losses.  In addition, the ratings reflect the quality of the loans
and the integrity of the transaction's legal structure as well as
the servicing capabilities of Ocwen Loan Servicing, LLC, rated
'RPS2' and master servicing capabilities of Wells Fargo Bank,
N.A., rated 'RPS1' by Fitch.  Deutsche Bank National Trust Company
is the trustee.

The certificates are supported by subprime, fixed- and adjustable-
rate, monthly pay, one- to four-family, residential first and
second lien mortgage loans as collateral.  The mortgage balance
for the total pool as of the cut-off date was $834,869,960.  The
weighted average loan rate is approximately 8.358% and the
weighted average remaining term to maturity is 358 months.  The
average principal balance of the loans is approximately $168,865.
The weighted average original loan-to-value ratio is 84.25%.  The
properties are primarily located in California (16.54%), Florida
(7.91%), Illinois (7.32%), Maryland (5.88%), New Jersey (5.33%),
Arizona (5.31%) and Virginia (5.05%); all other states have a
concentration of less than 5.00% of the pool.

All of the mortgage loans were purchased by Financial Asset
Securities Corp., a Delaware corporation and an affiliate of
Greenwich Capital Markets, Inc., acting as the depositor, from
Wells Fargo Bank, N.A.

The trust fund will make elections to treat some of its assets as
one or more real estate mortgage investment conduits for federal
income tax purposes.


SOUNDVIEW HOME: Moody's Cuts Rating on Class M-3 Certs. to Ba2
--------------------------------------------------------------
Moody's Investors Service has downgraded a certificate issued by
Soundview Home Equity Loan Trust 2001-2.  The transaction is
backed by first and second-lien, fixed and adjustable-rate
subprime mortgage loans.

The actions are based on the fact that the bonds' current credit
enhancement levels are low relative to the expected loss.  The
collateral has taken losses and the pipeline loss could cause
continual erosion of the overcollateralization.

Complete rating actions are:

Downgrade:

Issuer: Soundview Home Equity Loan Trust 2001-2

Class M-3, Downgraded from Baa2 to Ba2.


VISANT HOLDING: Moody's Revises Outlook to Developing
-----------------------------------------------------
Moody's Investors Service changed the outlook of Visant Holding
Corporation to developing from negative following R.R. Donnelley
and Sons Company's announced acquisition of Von Hoffman from
Visant for approximately $413 million in cash.  Moody's also
affirmed Visant's B1 corporate family rating and all other ratings
for Visant and its operating subsidiary, Visant Corporation.

The developing outlook incorporates uncertainty as to timing and
use of proceeds from the asset sale.  Moody's expects to
reevaluate the developing outlook within the next several months
as additional information becomes available.

A summary of today's actions is:

Visant Holding Corp.

- Outlook, Changed To Developing From Negative
- B1 Corporate Family Rating Affirmed
- B3 Senior Notes Rating Affirmed

Visant Corporation

- Ba2 Senior Secured Bank Rating Affirmed
- B2 Senior Subordinated Notes Rating Affirmed

Visant, a leading marketing and publishing services enterprise,
services school affinity, direct marketing, fragrance and
cosmetics sampling and educational publishing markets.  The
company maintains headquarters in Armonk, New York, and its annual
revenue is approximately $1.5 billion.


WHX CORP: OMG Buys Fastener Biz from Illinois Tools for $26 Mil.
----------------------------------------------------------------
WHX Corporation disclosed that OMG Inc., a subsidiary of its
wholly owned subsidiary, Handy & Harman, acquired a mechanical
roofing fastener business from Illinois Tool Works Inc. for
$26 million, including a working capital adjustment.

The acquired business develops and manufactures fastening systems
for the commercial roofing industry.  The company believes the
acquisition solidifies OMG's position as a manufacturer and
supplier of mechanical fasteners, accessories and components, and
building products for the commercial and residential construction
industry.

                   PBGC Settlement Agreement

The company also disclosed that the Internal Revenue Service had
granted a waiver of the minimum funding standards for the WHX
Pension Plan for the 2005 Plan year and that the company and Handy
& Harman had entered into a settlement agreement with the Pension
Benefit Guaranty Corporation in connection with the waiver and
certain other matters.

The PBGC Settlement Agreement and related agreements provide, in
part, for:

     (i) the amortization of the waived amount of $15.5 million
         over a period of five years;

    (ii) the PBGC's consent to the increase in borrowings under
         Handy & Harman's senior credit facility to $125 million
         in connection with the closing of the acquisition
         transaction by OMG;

   (iii) the resolution of any potential issues under Section
         4062(e) of the Employee Retirement Income Security Act of
         1974, as amended, in connection with the cessation of
         operations at certain facilities owned by the company,
         Handy & Harman or their subsidiaries; and

    (iv) the granting to the PBGC of subordinate liens on the
         assets of Handy & Harman and its subsidiaries, and
         specified assets of the company, to secure its obligation
         to pay the Waiver Amount to the WHX Pension Plan and to
         make certain payments to the WHX Pension Plan in the
         event of its termination.

In connection with the roofing fastener acquisition and the PBGC
settlement, Handy & Harman, and certain of its subsidiaries,
amended its loan and security agreement with Wachovia Bank,
National Association and its loan and security agreement with its
Tranche B term loan lender.  The amendments provided, in part, for
(i) an additional $42 million term loan, a portion of which was
used to fund the roofing acquisition, and (ii) consent to the PBGC
Settlement Agreement and related matters.

Headquartered in New York City, New York, WHX Corporation
(Pink Sheets: WXCP.PK) -- http://www.whxcorp.com/-- is a holding  
company structured to acquire and operate a diverse group of
businesses on a decentralized basis.  WHX's primary business is
Handy & Harman, an industrial manufacturing company servicing the
electronic materials, specialty wire and tubing, specialty
fasteners and fittings, and precious metals fabrication markets.
The Company filed for chapter 11 protection on March 7, 2005
(Bankr. S.D.N.Y. Case No. 05-11444).  When the Debtor filed for
protection from its creditors, it reported total assets of
$406,875,000 and total debts of $352,852,000.

                      Going Concern Doubt

PricewaterhouseCoopers LLP expressed substantial doubt about WHX
Corp.'s ability to continue as a going concern after auditing the
company's financial statements for the years ended Dec. 31, 2005
and 2004.  The auditing firm cited that the company is a holding
company with no bank facility of its own and since emerging from
bankruptcy has not had access to dividends from its only operating
subsidiary, Handy & Harman.

The auditing firm also cited that Handy & Harman has experienced
certain liquidity issues and its credit facility matures on
Mar. 31, 2007.  Additionally, the auditing firm cited that WHX
Corp. has significant cash requirements including the funding of
the WHX pension plan and certain other administrative costs.


WINN-DIXIE STORES: Balks at Internal Revenues' Claims
-----------------------------------------------------
Winn-Dixie Stores, Inc., and its debtor-affiliates ask the U.S.
Bankruptcy Court for the Southern District of New York to:

   (1) disallow 49 IRS Claims;

   (2) determine their tax liabilities for the tax years 2000
       through 2005;

   (3) reduce and allow Claim No. 13607 as a secured tax claim
       for $8,786,660; and

   (4) require the IRS to issue $43,211,940 in refunds.

The Internal Revenue Service filed 78 proofs of claim in the
Reorganized Debtors' Chapter 11 cases, 29 of which have been
disallowed by prior Court orders.

Cynthia C. Jackson, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, told the Court that:

   (a) 23 claims have been amended and superseded by claims
       subsequently filed by the IRS;

   (b) 22 claims are duplicative of all or part of the liability
       set forth in other claims filed by the IRS; and

   (c) 3 claims improperly assert administrative status.

The remaining claim of the IRS, Claim No. 13607, asserts
$88,832,315, of which $52,062,370 is alleged to be secured.

According to Ms. Jackson, the Reorganized Debtors have been in
negotiations with the IRS regarding their tax liabilities for the
2000 through 2004 tax years.  Based upon their discussions, the
parties have agreed that:

   (x) the IRS is owed an additional $8,786,660 for the 2000 tax
       year;

   (y) the IRS owes the Debtors a refund of $1,273,443 for the
       2001 tax year; and

   (z) the IRS owes the Debtors a refund of $91,504 for the 2002
       tax year.

The parties, however, have not yet reached an agreement regarding
the Debtors' tax liabilities for the 2003, 2004 and 2005 tax
years.

The Reorganized Debtors maintain that they overpaid the IRS in
2003 by $1,905,516, and that they owe the IRS no additional
monies for the 2004 tax year.  Furthermore, based upon net losses
incurred in the 2004 and 2005 tax years, the Reorganized Debtors
assert that they are entitled to refunds for four tax years:

                 Tax Year      Asserted Refunds
                 --------      ----------------
                   1994           $6,293,764
                   1995           $5,454,892
                   2002             $161,155
                   2003          $27,633,986

The Reorganized Debtors also asserted that they are owed $397,230
for a 2005 fuel tax credit.

The Reorganized Debtors have requested the refunds from the IRS
on June 26, 2006.  Ms. Jackson informed the Court that the IRS has
had more than 120 days to consider the requests and, in violation
of the automatic stay, refuses to issue the Reorganized Debtors
any refund.

The Reorganized Debtors reserve their right to object to the
claims on other grounds and to seek further reduction of Claim
No. 13607 to the extent that it has been paid.

The IRS had until Dec. 30, 2006, to file its response to the
Reorganized Debtors' objection to the IRS Claims.

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.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on Nov. 9,
2006.  Winn-Dixie emerged from bankruptcy on Nov. 21, 2006.  
(Winn-Dixie Bankruptcy News, Issue No. 62; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Court Okays Coca-Cola & VR Global Settlement Pact
-------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Florida approved
Winn-Dixie Stores Inc. and its debtor-affiliates' settlement with
Coca-Cola Enterprises Inc. and VR Global Partners LP.

In September 2005, Coca-Cola Enterprises asserted a reclamation
demand against the Debtors, which was later adjusted to
$2,149,270.

CCE opted into the Court-approved stipulation between the Debtors
and certain trade vendors regarding reconciliation and treatment
of the trade vendors' reclamation claims.  Accordingly, CCE is
deemed to be a participating reclamation vendor.

The Debtors and CCE agreed to reduce the Reclamation Claim to
$2,136,192, which the Debtors paid pursuant to their agreement.
The Agreement not only resolved the Reclamation Claim but also:

   (i) resulted in a waiver by the Debtors of any preference
       claims against CCE under Section 547 of the Bankruptcy
       Code, except for $340,034 in transfers; and

  (ii) preserved the Debtors' rights with respect to preference
       claims based upon the $340,034 in payments made to CCE
       between Feb. 10, 2005, and Feb. 21, 2005.

In July 2005, CCE filed four proofs of claim in the Debtors'
Chapter 11 cases:

   Claim No.         Amount       Debtor
   ---------         ------       ------
     8347          $8,530,810     Winn-Dixie Stores, Inc.
     8348           8,530,810     Winn-Dixie Montgomery, Inc.
     8349           8,530,810     Winn-Dixie Procurement, Inc.
     8350           8,530,810     Winn-Dixie Raleigh, Inc.

Each of the CCE Claims consisted of an unsecured non-priority
claim for $6,381,540, an unsecured priority claim for $2,149,270,
and a contingent indemnification claim.

In May 2006, CCE transferred the CCE Claims to Credit Suisse
Cayman Islands Branch, who in turn transferred the CCE Claims to
VR Global Partners LP in June.  VR Global currently holds the CCE
Claims.

The Debtors have sought to reduce and reclassify the CCE Claims.

The parties have determined that CCE overpaid the Debtors
$221,910 in postpetition payments pursuant to the marketing
agreements between them, D.J. Baker, Esq., at Skadden, Arps,
Slate, Meagher & Flom LLP, in New York, informed the Court.

Mr. Baker said the parties seek to settle and compromise the
Claim Objections, the overpayments by CCE, the possible
preference claims or other claims under Sections 547 and 550, to
the extent that Section 550 provides authority for the recovery
of a preferential transfer without further litigation.

The Debtors, VR Global, and CCE agree that upon Court approval of
their Stipulation:

   (a) Claim No. 8347 will be allowed as an unsecured non-
       priority claim for $5,836,730, and will be treated as a
       Class 14 Claim.  Claim Nos. 8348, 8349, and 8350 will be
       disallowed in their entirety;

   (b) All claims that originated as between the Debtors and CCE
       for products delivered to the Debtors or any credits or
       debits that arise pursuant to marketing agreements, which
       accrued prepetition or arise from marketing agreements in
       effect postpetition, are resolved by allowance of Claim
       No. 8347;

   (c) In consideration of the allowance of Claim No. 8347 and
       the waiver by CCE of the right to recover postpetition
       payments made to the Debtors for $221,910, CCE will be
       released from the Possible Preference Claims or other
       claims; and

   (d) Claim No. 8347, as allowed, will not be subject to any
       rights of set-off.

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.  The Honorable Jerry A. Funk
confirmed Winn-Dixie's Joint Plan of Reorganization on Nov. 9,
2006.  Winn-Dixie emerged from bankruptcy on Nov. 21, 2006.
(Winn-Dixie Bankruptcy News, Issue No. 62; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


* Thacher Proffitt Appoints Cullen, Barbiere and Oloko as Partners
------------------------------------------------------------------
Thacher Proffitt & Wood LLP, a 158-year-old law firm, disclosed
that William "Butch" Cullen, Janet Barbiere, and Bola Oloko have
joined the Firm as partners.  The group will practice in the
Structured Finance Practice Group, residing in the New York
office.  All three partners join Thacher Proffitt from the New
York office of Sidley Austin LLP, where they were partners.  Prior
to Sidley Austin, they each practiced at Thacher Proffitt.

"We proudly welcome Butch, Janet and Bola back to the Firm," said
Paul Tvetenstrand, Chairman and Managing Partner of Thacher
Proffitt.  "They each are experienced advisors in commercial
mortgage-backed securities and we look forward to their ongoing
successes here."

"Commercial mortgage-backed securities are a very important
segment of the securitization market, and Butch, Janet, and Bola
add tremendously to the breadth of our existing structured finance
practice," said Steve Kudenholdt, Partner and Chair of Thacher
Proffitt's Structured Finance Practice Group.  The practice has
more than 125 attorneys that specialize in a range of transaction
structures, as well as regulatory and compliance issues.

* William "Butch" Cullen

Mr. Cullen's practice focuses on securities and corporate finance,
with an emphasis on the securitization of financial assets.
Mr. Cullen received his JD from the University of Pennsylvania Law
School and his BA from Colgate University, Phi Beta Kappa.  He is
admitted to the New York bar.

* Janet Barbiere

Ms. Barbiere's practice focuses on commercial mortgage-backed
securitization, transactions in the secondary commercial mortgage
market and corporate finance.

Ms. Barbiere received her JD from Fordham University School of
Law, where she was a member of Fordham Law Review.  She received a
MA, magna cum laude, from Columbia University, and a BA from
Brooklyn College.  She is admitted to both the New York and New
Jersey bars.

* Bola Oloko

Mr. Oloko's practice focuses on advising financial institutions in
the financing, purchase and sale, and securitization of financial
assets, particularly commercial mortgage assets.  He has been
involved in many pioneering structured finance transactions,
including one of the earliest transactions involving the
securitization of loans in a "split loan" structure.

Mr. Oloko received his LLM from Georgetown University Law Center
and LLB from the University of Lagos.  He is admitted to the New
York and Nigeria bars.

                About Thacher Proffitt & Wood LLP

A law firm that focuses on the capital markets and financial
services industries, Thacher Proffitt -- http://www.tpw.com/--  
advises domestic and global clients in a wide range of areas,
including corporate and financial institutions law, securities,
structured finance, international trade matters, investment funds,
swaps and derivatives, cross-border transactions, real estate,
commercial lending, insurance, admiralty and ship finance,
litigation and dispute resolution, technology and intellectual
property, executive compensation and employee benefits, taxation,
trusts and estates, bankruptcy, reorganizations and
restructurings.  The Firm has more than 300 lawyers with five
offices located in New York City; Washington, DC; White Plains,
New York; Summit, New Jersey and Mexico City.


* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent chapter 11 cases filed with assets and liabilities below
$1,000,000:

In re Golden Bronx Laundromat, Inc.
   Bankr. S.D.N.Y. Case No. 06-13075
      Chapter 11 Petition filed December 22, 2006
         See http://bankrupt.com/misc/nysb06-13075.pdf

In re Dry Clean Super Center, LLC
   Bankr. N.D. Tex. Case No. 06-35706
      Chapter 11 Petition filed December 28, 2006
         See http://bankrupt.com/misc/txnb06-35706.pdf

In re A.C. & E.M., Inc.
   Bankr. N.D. Tex. Case No. 06-35763
      Chapter 11 Petition filed December 29, 2006
         See http://bankrupt.com/misc/txnb06-35763.pdf

                             *********

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 2007.  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 $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

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