/raid1/www/Hosts/bankrupt/TCR_Public/070217.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

            Saturday, February 17, 2007, Vol. 11, No. 41

                             Headlines

ACCEPTANCE INSURANCE: Posts $22,357 Net Loss in January 2007
DELTA AIR: Files Amended Special Schedules of Liabilities
DURA AUTOMOTIVE: Automotive Aviation's Schedules of Assets & Debts
DURA AUTOMOTIVE: Creation Group Files Schedules of Assets & Debts
DURA AUTOMOTIVE: D.A.S. of Indiana's Schedules of Assets & Debts

DURA AUTOMOTIVE: 18 Debtors File Schedules of Assets and Debts
FEDERAL-MOGUL: Earns $196.1 Million in December 2006
PACIFIC LUMBER: Scotia Development's Schedules of Assets & Debts
SONICBLUE INC: Files December 2006 Monthly Operating Report

                             *********

ACCEPTANCE INSURANCE: Posts $22,357 Net Loss in January 2007
------------------------------------------------------------
Acceptance Insurance Companies Inc. filed its monthly operating
report for January 2007 with the United States Bankruptcy Court
for the District of Nebraska on Feb. 12, 2007.

The Debtor reported a net loss of $22,357 from revenue of $8,408
for the month ended Jan. 31, 2007.  Net loss for the month ended
Dec. 31, 2006, was $27,564 on $7,667 of revenues.

At Jan. 31, 2007, Acceptance Insurance Companies Inc.'s balance
sheet showed:

        Total Current Assets                    $1,816,850
        Total Assets                           $35,052,895
        Total Liabilities                     $138,191,038
        Total Shareholders' Deficit          ($103,138,143)

A full-text copy of Acceptance Insurance Companies Inc.'s January
2006 Monthly Operating Report is available at no charge at:

                http://researcharchives.com/t/s?19e6

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies Inc. -- http://www.aicins.com/-- owns, either directly     
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.  The company filed
for chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case
No. 05-80059).  The Debtor's affiliates -- Acceptance Insurance
Services Inc. and American Agrisurance Inc. -- filed separate
chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 and
05-80058) on Jan. 7, 2005.  John J. Jolley, Esq., at Kutak Rock
LLP, represents the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it listed
$33,069,446 in total assets and $137,120,541 in total debts.


DELTA AIR: Files Amended Special Schedules of Liabilities
---------------------------------------------------------
Delta Air Lines Inc. and its debtor-affiliates filed an amended
special schedules of liabilities with the U.S. Bankruptcy Court
for the Southern District of New York to reflect that:

   (1) Secured Claims total $6,276,576,643; and

   (2) the amount of Unsecured Non-Priority Claims increased by
       $1,316,796,073, and now total $8,468,942,159.

Delta's total scheduled liabilities equal $14,745,672,869.

                          About Delta Air

Headquartered in Atlanta, Georgia, Delta Air Lines (OTC: DALRQ)
-- 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. 61; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000)


DURA AUTOMOTIVE: Automotive Aviation's Schedules of Assets & Debts
------------------------------------------------------------------

A.     Real Property                                          $0

B.     Personal Property
B.13   Stock and Interests                          Undetermined
B.14   Interests in partnerships & joint venture    Undetermined
B.18   Other Liquidated Debts Owing Debtor                     0
B.27   Aircraft                                        6,856,739

       TOTAL SCHEDULED ASSETS                         $6,856,739
       =========================================================

C.     Property Claimed as Exempt                 Not applicable

D.     Secured Claim
          JP Morgan Chase Bank, N.A.                $225,963,688
          Others                                    Undetermined

E.     Unsecured Priority Claims                            None

F.     Unsecured Non-priority Claims
          BNY Midwest Trust Company                  418,569,672
          US Bank                                    427,530,400
          Mizuho Trust & Banking                     132,111,376
          Intercompany Payables                        5,442,973

       TOTAL SCHEDULED LIABILITIES                $1,209,618,108
       =========================================================

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 Oct. 30, 2006
(Bankr. D. 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. 13; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: Creation Group Files Schedules of Assets & Debts
-----------------------------------------------------------------

A.     Real Property                                          $0

B.     Personal Property
B.1    Cash on Hand                                         None
B.2    Bank Accounts                                        None
B.3    Security Deposit                                      250
B.4    Household Goods and Furnishings                      None
B.5    Books, Arts and Collections                          None
B.6    Wearing apparel                                      None
B.7    Furs and Jewelry                                     None
B.8    Firearms and Hobby Equipment                         None
B.9    Insurance Policies                                   None
B.10   Annuities                                            None
B.11   Interests in Education Plan                          None
B.12   Interests in Pension/Profit Sharing Plan             None
B.13   Stock and Interests                          Undetermined
B.14   Interests in partnerships & joint venture    Undetermined
B.15   Government & Corporate Bonds                         None
B.16   Accounts Receivable                             2,843,099
B.17   Alimony, Maintenance, Support                        None
B.18   Other Liquidated Debts Owing Debtor                43,105
B.19   Equitable or Future Interests                        None
B.20   Contingent and non-contingent interests              None
B.21   Other Contingent and Unliquidated Claims             None
B.22   Intellectual Property                                None
B.23   General Intangibles                                  None
B.24   Customer Lists or Other Compilations                 None
B.25   Vehicles                                           44,652
B.26   Boats                                                None
B.27   Aircraft                                             None
B.28   Office Equipment                                   75,872
B.29   Equipment and Supplies for Business             2,165,816
B.30   Inventory                                       3,312,864
B.31   Animals                                              None
B.32   Crops                                                None
B.33   Farming Equipment                                    None
B.34   Farm Supplies, Chemicals and Feed                    None
B.35a  Other Personal Property                         4,669,208
B.35b  AP Debit Balances                                  16,044

       TOTAL SCHEDULED ASSETS                        $13,170,910
       =========================================================

C.     Property Claimed as Exempt                 Not applicable

D.     Secured Claim
          JP Morgan Chase Bank, N.A.                $225,963,688

E.     Unsecured Priority Claims                    Undetermined

F.     Unsecured Non-priority Claims
          BNY Midwest Trust Company                  418,569,672
          US Bank                                    427,530,400
          Mizuho Trust & Banking                     132,111,376
          Accounts Payable                             1,672,476
          Intercompany Payables                       26,128,547
          Litigation Claims                         Undetermined

       TOTAL SCHEDULED LIABILITIES                $1,231,976,159
       =========================================================

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 Oct. 30, 2006
(Bankr. D. 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. 13; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: D.A.S. of Indiana's Schedules of Assets & Debts
----------------------------------------------------------------

A.     Real Property
          Elkhart, Indiana                              $383,897
          Elkhart, Indiana                             4,483,977

B.     Personal Property
B.13   Stock and Interests                          Undetermined
B.14   Interests in partnerships & joint venture    Undetermined

       TOTAL SCHEDULED ASSETS                         $4,867,874
       =========================================================

C.     Property Claimed as Exempt                Not applicable

D.     Secured Claim
          JP Morgan Chase Bank, N.A.                $225,963,688
          Others                                    Undetermined

E.     Unsecured Priority Claim                     Undetermined

F.     Unsecured Non-priority Claims
          BNY Midwest Trust Company                  418,569,672
          US Bank                                    427,530,400
          Mizuho Trust & Banking                     132,111,376

       TOTAL SCHEDULED LIABILITIES                $1,204,175,135
       =========================================================

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 Oct. 30, 2006
(Bankr. D. 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. 13; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DURA AUTOMOTIVE: 18 Debtors File Schedules of Assets and Debts
--------------------------------------------------------------
In their schedules of assets and liabilities submitted to the
U.S. Bankruptcy Court for the District of Delaware, 18 Debtor-
affiliates of DURA Automotive Systems Inc. disclosed that they
have zero assets and these liabilities:

                                                Total Scheduled
   Debtor                                         Liabilities
   ------                                       ---------------
   Atwood Automotive, Inc.                       $1,204,175,135
   Creation Group Transportation, Inc.            1,204,175,135
   Creation Group, Inc.                           1,204,175,135
   Creation Windows, LLC                          1,204,175,135
   Dura Aircraft Operating Company, LLC           1,204,175,135
   Dura Brake Systems, L.L.C.                     1,204,175,135
   Dura Cables North LLC                          1,204,175,135
   Dura Cables South LLC                          1,204,175,135
   Dura Services, L.L.C.                          1,204,175,135
   Dura Shifter, L.L.C.                           1,204,175,135
   Kemberly, LLC                                  1,206,061,482
   Mark I Molded Plastics of Tn, Inc.             1,204,175,135
   Patent Licensing Clearinghouse, L.L.C.         1,204,175,135
   Dura Holdings Canada LP                           47,559,284
   Dura Holdings ULC                                          0
   Dura Ontario, Inc.                                    19,007
   Trident Automotive Canada Co.                          7,943
   Trident Automotive Limited                             3,749

Each of the Debtors with scheduled liabilities aggregating
$1,204,175,135, and Kemberly, LLC, inform the Court that their
debts relate to:

   (a) JP Morgan Chase Bank, N.A.'s secured claim for
       $225,963,688; and

   (b) these unsecured non-priority claims:

          Claimant                                        Amount
          --------                                        ------
          BNY Midwest Trust Company                 $418,569,672
          US Bank                                    427,530,400
          Mizuho Trust & Banking                     132,111,376

Kemberly also discloses it owes $1,886,347 in accounts payable to
approximately 90 creditors holding unsecured non-priority claims.

The scheduled liabilities of Dura Holdings Canada LP, Dura
Ontario, Inc., Trident Automotive Canada Co., and Trident
Automotive Limited relates to intercompany payables.

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 Oct. 30, 2006
(Bankr. D. 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. 13; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


FEDERAL-MOGUL: Earns $196.1 Million in December 2006
----------------------------------------------------

               Federal-Mogul Global, Inc., et al.
                    Unaudited Balance Sheet
                     As of December 31, 2006
                         (In millions)

                             Assets

Cash and equivalents                                      $50.8
Accounts receivable                                       543.3
Inventories                                               420.3
Deferred taxes                                            191.2
Prepaid expenses and other current assets                  97.2
                                                       --------
Total current assets                                    1,302.8

Summary of Unpaid Postpetition Debits                     (20.1)
Intercompany Loans Receivable (Payable)                 1,619.0
                                                       --------
Intercompany Balances                                   1,598.9

Property, plant and equipment                             818.0
Goodwill                                                  966.9
Other intangible assets                                   345.8
Insurance recoverable                                     859.0
Other non-current assets                                  486.9
                                                       --------
Total Assets                                           $6,378.3
                                                       ========

              Liabilities and Shareholders' Equity

Short-term debt                                          $373.7
Accounts payable                                          194.4
Accrued compensation                                       70.4
Restructuring and rationalization reserves                 23.1
Current portion of asbestos liability                         -
Interest payable                                            4.4
Other accrued liabilities                                 229.4
                                                       --------
Total current liabilities                                 895.5

Long-term debt                                                -
Post-employment benefits                                  769.1
Other accrued liabilities                                 516.4
Liabilities subject to compromise                       5,873.5

Shareholders' equity:
   Preferred stock                                      1,050.6
   Common stock                                           658.1
   Additional paid-in capital                           7,986.9
   Accumulated deficit                                (11,444.9)
   Accumulated other comprehensive income                  73.2
   Other                                                      -
                                                       --------
Total Shareholders' Equity                             (1,676.1)
                                                       --------
Total Liabilities and Shareholders' Equity             $6,378.3
                                                       ========

               Federal-Mogul Global, Inc., et al.
               Unaudited Statement of Operations
             For the Month Ended December 31, 2006
                         (In millions)

Net sales                                                $221.0
Cost of products sold                                     165.2
                                                       --------
Gross margin                                               55.8

Selling, general & administrative expenses                 (0.4)
Amortization                                               (1.2)
Reorganization items                                       33.4
Interest expense, net                                     (15.1)
Other expense, net                                         18.5
                                                       --------
Earnings before Income Taxes                               91.1

Income Tax (Expense) Benefit                              105.0
                                                       --------
Earnings before cumulative effect of change
   in accounting principle                                196.1
                                                       --------
Net Earnings (loss)                                      $196.1
                                                       ========

               Federal-Mogul Global, Inc., et al.
               Unaudited Statement of Cash Flows
             For the month ended December 31, 2006
                         (In millions)

Cash Provided From (Used By) Operating Activities:
   Net earning (loss)                                    $196.1
Adjustments to reconcile net earnings (loss) to net cash:
   Depreciation and amortization                           12.4
   Adjustment of assets held for sale and
      other long-lived assets to fair value                 8.8
   Asbestos charge                                            -
   Summary of unpaid postpetition debits                      -
   Cumulative effect of change in acctg. Principle            -
   Change in post-employment benefits                     316.0
   Decrease (increase) in accounts receivable              40.9
   Decrease (increase) in inventories                      15.1
   Increase (decrease) in accounts payable                (25.1)
   Change in other assets & other liabilities            (455.1)
   Change in restructuring charge                             -
   Refunds (payments) against asbestos liability              -
                                                       --------
Net Cash Provided From Operating Activities               109.1

Cash Provided From (Used By) Investing Activities:
   Expenditures for property, plant & equipment           (13.6)
   Proceeds from sale of property, plant & equipment          -
   Proceeds from sale of businesses                           -
   Business acquisitions, net of cash acquired                -
   Other                                                      -
                                                       --------
Net Cash Provided From (Used By) Investing Activities     (13.6)

Cash Provided From (Used By) Financing Activities:
   Increase (decrease) in debt                           (115.6)
   Sale of accounts receivable under securitization           -
   Dividends                                                  -
   Other                                                    0.1
                                                       --------
Net Cash Provided From Financing Activities              (115.4)

Increase (Decrease) in Cash and Equivalents               (19.9)

Cash and equivalents at beginning of period                70.6
                                                       --------
Cash and equivalents at end of period                     $50.8
                                                       ========

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is an automotive parts company   
with worldwide revenue of some $6 billion.  The Company filed for
chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No.
01- 10582).  Lawrence J. Nyhan Esq., James F. Conlan Esq., and
Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura
Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones &
Weintraub, P.C., represent the Debtors in their restructuring
efforts.  When the Debtors filed for protection from their
creditors, they listed $10.15 billion in assets and $8.86 billion
in liabilities.  Federal-Mogul Corp.'s U.K. affiliate, Turner &
Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq.,
at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq.,
Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard
Firm represent the Official Committee of Unsecured Creditors.  
(Federal-Mogul Bankruptcy News, Issue No. 128; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or   
215/945-7000).


PACIFIC LUMBER: Scotia Development's Schedules of Assets & Debts
----------------------------------------------------------------

A.     Real Estate               
           CC Tower Center, Ltd.                          $5,000
           North Shore Properties                          5,000

B.     Personal Property           
B.1    Cash on Hand                                            0
B.2    Bank Accounts                                      16,814
B.4    Security Deposit                                      549
B.9    Interests in insurance policies                         0
B.16   Accounts Receivable
          Pacific Lumber Company                         310,729
          Scotia Pacific Company LLC                     140,534
B.28   Office Equipment                                    1,051

       TOTAL SCHEDULED ASSETS                           $479,677
       =========================================================

D.     Creditors Holding Secured Claims
           LaSalle Business Credit, LLC              $13,000,000
           Marathon Structured Finance Fund, LP
              Revolving Credit Agreement              27,000,000
              Term Loan Agreement                     84,000,000

E.     Creditors Holding Unsecured Priority Claims             0

F.     Creditors Holding Unsecured Non-Priority Claims
           AT&T                                              191
           Black & Veatch                                 50,000
           JoLoCo, SA                                        500
           Lakefield Development LLC                       7,258
           Maxxam Group Inc.                              46,600
           Maxxam Inc.                                     2,912
           MCO Properties, Inc.                          140,859

       TOTAL SCHEDULED LIABILITIES                  $124,248,320
       =========================================================

Headquartered in Oakland, California, The Pacific Lumber Company
-- http://www.palco.com/-- and its subsidiaries operate in    
several principal areas of the forest products industry,
including the growing and harvesting of redwood and Douglas-fir
timber, the milling of logs into lumber and the manufacture of
lumber into a variety of finished products.

Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.

Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transactions pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.

Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032).  Jeffrey L. Schaffer, Esq.,
William J. Lafferty, Esq., and Gary M. Kaplan, Esq., at Howard
Rice Nemerovski Canady Falk & Rabkin, A Professional Corporation
is Pacific Lumber's lead counsel.  Nathaniel Peter Holzer, Esq.,
Harlin C. Womble, Jr. , Esq., and Shelby A. Jordan, Esq., at
Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co-
counsel.  Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at
Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead
counsel.  John F. Higgins, Esq., and James Matthew Vaughn, Esq.,
at Porter & Hedges LLP, is Scotia Pacific's co-counsel.

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.  
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.  The Debtors' exclusive period to file a chapter
11 plan expires on May 18, 2007.  (Scotia/Pacific Lumber
Bankruptcy News, Issue No. 5, http://bankrupt.com/newsstand/or    
215/945-7000).


SONICBLUE INC: Files December 2006 Monthly Operating Report
-----------------------------------------------------------
At Dec. 31, 2006, SONICblue Incorporated reports that it is
sitting on $78,916,722 of cash, has accrued $570,115 in
postpetition liabilities, and faces a $236,604,166 mountain of        
prepetition debts.

A full-text copy of SONICblue Inc.'s December 2006 Monthly
Operating Report is available at no charge at:
                                  
               http://researcharchives.com/t/s?19e8    

Headquartered in Santa Clara, California, SONICblue Incorporated
is involved in the converging Internet, digital media,
entertainment and consumer electronics markets.  The company,
together with three of its wholly owned subsidiaries, Diamond
Multimedia Systems, Inc., ReplayTV, Inc., and Sensory Science
Corporation, filed for chapter 11 protection on Mar. 21, 2003
(Bankr. N.D. Calif. Case Nos. 03-51775 to 03-51778).  Craig A.
Barbarosh, Esq., at the Law Offices of Pillsbury Winthrop,
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they listed
assets totaling $342,871,000 and debts totaling $335,473,000.

                             *********

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
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related conferences are encouraged.  Send announcements to
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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, Shimero R. Jainga, Ronald C. Sy,
Joel Anthony G. Lopez, Cecil R. Villacampa, Rizande B. Delos
Santos, Cherry A. Soriano-Baaclo, Jason A. Nieva, Melvin C. Tabao,  
Tara Marie A. Martin, Frauline S. Abangan, 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.

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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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