TCR_Public/070324.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, March 24, 2007, Vol. 11, No. 71


CATHOLIC CHURCH: Spokane Amends Schedules of Assets and Debts
CITATION CORP: Files Schedules of Assets and Liabilities
COLLINS & AIKMAN: Earns $5.46 Million in Period Ended Feb. 24
FISCHER IMAGING: Posts $100,960 Net Loss in Period Ended Feb. 28
HANCOCK FABRICS: Shows Balance Sheet as of January 28, 2006

MORTGAGE LENDERS: Files Schedules of Assets and Liabilities
ONE IP: Posts $200,457 Net Loss in Period Ended Dec. 31
PEOPLE'S CHOICE: Shows Unaudited Balance Sheet as of Mar. 31, 2006
VESTA INSURANCE: Gaines Files February 2007 Operating Report
WERNER LADDER: PA Posts $9.9 Mil. Net Loss in February 2007


CATHOLIC CHURCH: Spokane Amends Schedules of Assets and Debts
Michael J. Paukert, Esq., at Paine Hamblen LLP, in Spokane,
Wash., notifies the U.S. Bankruptcy Court for the Eastern
District of Washington that the Diocese of Spokane has:

    (a) amended its Schedules A, E, F and G, which were filed by
        the Diocese on Dec. 6, 2004; and

    (b) further amended its Schedule F that was previously
        amended on Jan. 14, 2005.

Mr. Paukert notes that Schedule A was amended to add previously
omitted parcel numbers and to delete Rockwood Lane Units which
should be listed on Schedule G.

Schedule E was amended to delete terminated employees.

Schedule F, on the other hand was further amended to set forth
that (i) the claims of all terminated employees were paid at the
date of termination of employment, (ii) the claims for counseling
services were paid pursuant to a May 10, 2005 order issued by the
court granting a joint request filed by the Diocese, the Tort
Litigants Committee and the Tort Claimants Committee authorizing
the Diocese to reimburse certain prepetition counseling bills,
and (iii) the claims that were paid but inadvertently originally

The amended Schedule G adds the Rockwood Lane Units incorrectly
listed on Schedule A.

The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004.  Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in
its restructuring efforts.  When the Debtor filed for protection
from its creditors, it listed $11,162,938 in total assets and
$81,364,055 in total debts.  

The Diocese of Spokane, the Tort Claimants Committee, the Future
Claims Representative, and the Executive Committee of the
Association of Parishes delivered an Amended Plan of
Reorganization, and a Disclosure Statement describing that Plan
to the Court on Feb. 1, 2007.  The Honorable Patricia C. Williams
approved the disclosure statement on March 8, 2007.  (Catholic
Church Bankruptcy News, Issue No. 85; Bankruptcy Creditors'
Service, Inc., 215/945-7000).

CITATION CORP: Files Schedules of Assets and Liabilities

A.      Real Property
           Foundry, Pattern Shop and Core Room
              Bessemer, AL                             $894,720
           Foundry and Core room
              Selma, AL                                 259,714
           Foundry (Closed)
              Centreville, AL                           180,000
              Bay Minette, AL                         1,042,880
           Machining Facility
              Bay Minette, AL                           921,757
              Menomonee Falls, WI
                 W140 N5516 Lilly Road                2,097,456
                 W139 N5470 Oak Lane,                 1,715,718
              Oconomowoc, WI                          3,407,306
              Grand Rapids, MI                        1,945,714
              Lowell, MI                              1,310,529
              Brewton, AL                             1,042,694
              Biscoe, NC                              1,484,871
              Menomonee Falls, WI                       543,942
           Main Plant
              Marion, AL                              1,037,554
              Columbiana, AL                          1,056,626
           Land/Building Held For Sale
              Lake Zurich, IL                         1,130,000
           Foam Warehouse
              Columbiana, AL                            336,567

B.      Personal Property
B.1     Cash on hand                                      7,895
B.2     Bank accounts                                 1,144,383
B.3     Security Deposits
           Lockton Loss Fund deposit                    580,946
           Textron deposit                              344,505
           Millenium                                    270,000
           CH Robinson                                  240,000
           Porter Warner                                200,000
           Cigna                                        181,000
           Alagasco                                     146,125
           Farnam Street                                105,830
           TETRA                                        103,125
           Capstone                                     100,000
           Others                                       230,901
B.4     Household goods                                       0
B.5     Book, art work & collectibles                         0
B.6     Wearing apparel                                       0
B.7     Furs and jewelry                                      0
B.8     Firearms and sporting goods                           0
B.9     Interests in Insurance Policies
B.10    Annuities                                             0
B.11    Interests in education IRA                            0
B.12    Interests in retirement plans                         0
B.13    Stock and Interests                              18,952
B.14    Interests in joint ventures                           0
B.15    Government & corporate bonds                          0
B.16    Accounts receivable
              A/R Owed To Biscoe                      9,948,613
              A/R Owed To Menomonee Falls             7,038,396
              A/R Owed To Bessemer                    5,563,191
              A/R Owed To Columbiana                  5,300,351
              A/R Owed To Brewton                     4,987,261
              A/R Owed To Grand Rapids                4,147,781
              A/R Owed To Marion                      2,009,057
              A/R Owed To Bay Minette                   819,884
              A/R Owed To Corporate                     370,087
              A/R Owed To Novi                           26,768
           Intercompany Receivable
              Owed from Citation Foundry                 88,418
B.17    Alimony                                               0
B.18    Other liquidated debts owed                           0
B.19    Equitable or future interests                         0
B.20    Contingent & contingent interests                     0
B.21    Other contingent & unliquidated claims          Unknown
B.22    Patents, copyrights & trademarks                      0
B.23    Licenses & franchises                                 0
B.24    Other intangibles                                     0
B.25    Automobiles                                      22,340
B.26    Boats                                                 0
B.27    Aircraft                                              0
B.28    Office equipment and supplies                   937,743
B.29    Machinery, furniture and fixtures
           Plant equipment
              valuation account (fresh start)        14,898,071
              Brewton                                11,034,774
              Biscoe                                 10,854,171
              Bessemer                                9,603,004
              Men Falls                               8,106,399
              Marion                                  6,518,195
              Columbiana                              6,298,976
              Grand Rapids                            5,770,535
              Bay Minette                             1,030,332
B.30    Inventory
           Finished Goods-Biscoe                      5,738,292
           Work in Process-Menomonee Falls            1,935,171
           Finished Goods-Bessemer                    1,514,217
           Finished Goods-Columbiana                  1,497,274
           Raw Materials-Menomonee Falls              1,143,754
           Work in Process-Grand Rapids                 653,133
           Finished Goods-Grand Rapids                  551,423
           Raw Materials-Grand Rapids                   533,414
           Raw Materials-Columbiana                     451,418
           Raw Materials-Marion                         329,476
           Supplies Inventory-Biscoe                    319,107
           Finished Goods-Brewton                       286,166
           Raw Materials-Brewton                        271,622
           Consolidated Inventory Absorption Adjus      267,000
           Finished Goods-Menomonee Falls               264,513
           Work in Process-Brewton                      239,215
           Finished Goods-Marion                        195,638
           Raw Materials-Bessemer                       193,486
           Raw Materials-Biscoe                         151,431
           Supplies Inventory-Brewton                   145,668
           Raw Materials-Bay Minette                    135,861
           Supplies Inventory-Columbiana                117,866
           Supplies Inventory-Marion                    101,360
           Work in Process-Marion                        87,658
           Finished Goods-Bay Minette                    50,488
B.31    Animals                                               0
B.32    Crops                                                 0
B.33    Farming equipment                                     0
B.34    Farm supplies                                         0
B.35    Other personal property
           Country Club Memberships-Birmingham           72,000
           Misc Prepaids
              Bessemer                                    3,462
              Birmingham                                424,054
              Biscoe                                    250,416
              Brewton                                     3,733
              Columbiana                                 13,622
              Grand Rapids                                1,610
              Lake Zurich                                29,358
              Marion                                     12,180
              Menomonee Falls                             2,000
              Novi                                      650,002
           Prepaid Insurance
              Birmingham (Corporate)                  1,351,333
              Biscoe                                      2,588
              Columbiana                                  2,837
              Grand Rapids                                7,762
              Novi                                        1,463
           Prepaid Taxes                                  2,953
           Unamortized Loan Closing Costs-Birmingh      979,863
           Unbilled Patterns/Dies
              Bay Minette                               353,166
              Grand Rapids                              235,055
              Marion                                    302,675
              Columbiana                               (184,288)
           Value of customer relationships
              and goodwill
                 Grand Rapids                           468,736
                 Bessemer                             4,154,174
                 Biscoe                               9,358,029
           Goodwill valuation
              adjustment (fresh start)              (18,326,592)
           Intangibles valuation
              adjustment (fresh start)                  439,151

        TOTAL SCHEDULED ASSETS                     $157,242,049

C.      Property Claimed as Exempt               Not applicable

D.      Creditors Holding Secured Claims
           JPMorgan Chase & Co.
              Term Debt                            $190,799,761
              Revolver                               38,199,508
           Total Capital Leases                         350,930

E.      Creditors Holding Unsecured
        Priority Claims
           Taxes                                        Unknown

F.      Creditors Holding Unsecured Claims           23,920,720
           Subordinated Note
              (face value plus accrued
              interest @ 02/04/07)                   10,402,740
           Accounts payable                          13,517,981

        TOTAL SCHEDULED LIABILITIES                $253,270,918

Headquartered in Birmingham, Alabama, Citation Corporation -- designs, develops and manufactures
cast, forged and machined components for the capital and durable
goods industries, including the automotive and industrial markets.
Citation uses aluminum, steel, gray iron, and ductile iron as the
raw materials in its various manufacturing processes.  The Debtor
and its debtor-affiliates previously filed for protection on Sept.
18, 2004 (Bankr. N.D. Ala. Case No. 04-08130).  Michael Leo Hall,
Esq., and Rita H. Dixon, Esq., at Burr & Forman LLP, represented
the Debtors in their first bankruptcy. Judge Tamara O. Mitchell
confirmed the company's Second Amended Joint Plan of
Reorganization on May 18, 2005.

The Debtor and 11 debtor-affiliates filed for their second
bankruptcy on March 12, 2007 (Bankr. N.D. Ala. Case Nos. 07-01153
to 07-01162).  David S. Heller, Esq., at Latham & Watkins LLP, and
Michael Leo Hall, Esq., at Burr & Forman LLP, represent the
Debtors.  At Oct. 2005, Citation's balance sheet showed total
assets of $360,243,000 and total debts of $294,702,000.  The
Debtors exclusive period to file a chapter 11 plan expires on
July 10, 2007.  (Citation Corp. Bankruptcy News, Issue No. 3, 215/945-7000).

COLLINS & AIKMAN: Earns $5.46 Million in Period Ended Feb. 24

                  Collins & Aikman Corporation
                           Balance Sheet
                        As of Feb. 24, 2007


Cash                                               $130,491,451
Accounts receivable-trade, net                      239,117,860
Other non-trade receivables                          10,034,530
Inventories, net                                     73,975,636
Tooling and molding, net-current                     33,982,903
Prepaids & other current assets                      54,200,422
Deferred tax assets-current                                   0
TOTAL CURRENT ASSETS                                541,802,803

Investments in subsidiaries                       2,479,293,518
Fixed assets, net                                   251,096,678
Goodwill, net                                       773,081,951
Deferred tax assets-long term                                 0
Tooling and molding, net-long term                    8,369,592
Other noncurrent assets                              29,445,077
Intercompany accounts - net                          40,209,144
Prepetition intercompany - net                      645,087,259
TOTAL ASSETS                                     $4,768,386,022

                       LIABILITIES & EQUITY

Notes payable                                                $0
Short term borrowings                                         0
Advance on receivables                                        0
Current portion-long term debt                      135,413,352
Current portion-capital leases                                0
Accounts payable                                     62,097,145
Accrued interest payable                             54,023,800
Accrued & other liabilities                         180,214,997
Income taxes payable                                  3,622,706
Total current liabilities                           435,372,000

Liabilities subject to compromise                 2,374,521,122
Deferred income taxes                                30,472,400
Total liabilities                                 2,840,365,521

Total equity                                      1,928,020,500
TOTAL LIABILITIES & EQUITY                       $4,768,386,022

                  Collins & Aikman Corporation
                        Income Statement
                  Month Ended February 24, 2007

Net outside sales                                  $125,938,376
I/C Net sales                                         9,717,758
Total sales                                         135,656,135

Cost of Sales                                       116,650,516
Gross profit                                         19,005,619

Selling, general & administrative expenses            8,744,109
Operating income                                     10,261,510

Interest expenses, net                                7,160,902
Intercompany interest, net                           (2,618,797)
Preferred stock accretion                                     0
Miscellaneous (income)/expense                                0
Corporate allocation adjustment                               0
Commission income                                      (144,454)
Commission expense                                            0
Royalty income                                         (284,295)
Royalty expense                                               0
Joint Venture (Income)/Expense                                0
Minority interest in cons net income                          0
Dividend income                                               0
Discount/Income for Carcorp.                                  0
Gain/(Loss) early extinguishments of debt                     0
Discount/Premium on hedges                                    0
(Gain)/Loss on hedges                                         0
(Gain)/Loss on swaps                                          0
NAAIS Intercompany sales profit                               0
Loss on sale of receivables                                   0
Restructuring provision                                       0
Asset Impairment                                              0
Foreign transactions - (Gain)/Loss                      570,387
Amort. of discount on NPV of liabilities                      0
(Gain)/Loss on sale-leaseback transaction                     0
Income from continuing operations
   before income taxes                                5,577,768

Federal income tax                                            0
State income tax                                         19,260
Foreign income tax                                            0
Income from continuing operations                     5,558,508

Discontinued operations                                  93,727
Gain/Loss on sale of divisions                                0
Extraordinary items                                           0
Integration                                                   0
NET INCOME (LOSS)                                    $5,464,782

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

The Debtors' disclosure statement explaining their First Amended
Joint Chapter 11 Plan was approved on Jan. 25, 2007.
(Collins & Aikman Bankruptcy News, Issue No. 56; Bankruptcy
Creditors' Service, Inc.,  
or 215/945-7000).

FISCHER IMAGING: Posts $100,960 Net Loss in Period Ended Feb. 28
Fischer Imaging Corp. filed its monthly operating report
for February 2007 with the United States Bankruptcy Court for the
District of Colorado on March 15, 2007.

The Debtor reported a net loss of $100,960 from zero revenue for
the month ended Feb. 28, 2007.

At Feb. 28, 2007, Fischer Imaging Corp.'s balance sheet showed:

        Total Current Assets                  $2,518,819
        Total Assets                          $3,228,129
        Total Liabilities                     $1,893,902
        Total Shareholders' Equity            $1,334,226

A full-text copy of Fischer Imaging Corp.'s February 2007 Monthly
Operating Report is available at no charge at:


Fischer Imaging Corporation --   
services and manufactures medical imaging systems for the
screening and diagnosis of disease.  The company began producing
general-purpose x-ray imaging systems in 1910 and is the oldest
manufacturer of x-ray imaging devices in the United States.  The
company filed for chapter 11 protection on Aug. 22, 2006 (Bankr.
D. Colo. Case No. 06-15611).  Douglas W. Jessop, Esq., at Jessop &
Company, P.C., represents the Debtor in its restructuring efforts.
When it filed for protection from its creditors, it listed
$2,235,414 in total assets and $26,104 in total debts.

HANCOCK FABRICS: Shows Balance Sheet as of January 28, 2006

                      Hancock Fabrics, Inc.
                   Consolidated Balance Sheets
                     As of January 28, 2006


   Cash and cash equivalents                         $3,215,000
   Receivables, less allowance for doubtful accounts  5,053,000
   Inventories                                      152,893,000
   Income taxes refundable                            7,116,000
   Prepaid expenses                                   1,840,000
Total current assets                                170,117,000

Property and equipment, at depreciated cost          55,948,000
Deferred tax assets                                   5,427,000
Goodwill                                              4,218,000
Other assets                                          6,263,000
TOTAL ASSETS                                       $241,973,000


   Accounts payable                                 $37,784,000
   Accrued liabilities                               20,023,000
   Deferred tax liabilities                           5,889,000
Total current liabilities                            63,696,000

Long-term debt obligations                           51,056,000
Long-term lease financing obligations                 4,114,000
Postretirement benefits other than pensions          22,872,000
Pension and SERP liabilities                          9,129,000
Other liabilities                                    10,545,000
TOTAL LIABILITIES                                   161,412,000

   Common stock                                         324,000
   Additional paid-in capital                        75,223,000
   Retained earnings                                174,842,000
   Treasury stock                                  (153,372,000)
   Accumulated other comprehensive loss             (13,345,000)
   Deferred compensation on restricted
      stock incentive plan                           (3,111,000)
TOTAL SHAREHOLDERS' EQUITY                           80,561,000

Headquartered in Baltimore, Mississippi, Hancock Fabrics Inc. -- is a specialty retailer of a  
wide selection of fashion and home decorating textiles, sewing
accessories, needlecraft supplies and sewing machines.  Hancock
Fabrics is one of the largest fabric retailers in the United
States, currently operating approximately 400 retail stores in
approximately 40 states.  The company currently employs
approximately 7,500 people on a full-time and part-time basis.  
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.  The company and 6
of its debtor-affiliates filed for chapter 11 bankruptcy
protection on March 21, 2007 (Bankr. D. Del. Case Nos. 07-10353,
07-10354, 07-356 through 07-10360).  Robert J. Dehney, Esq., at
Morris, Nichols, Arsht & Tunnell, represent the Debtors as
Counsel.  When the Debtors filed for protection from their
creditors, they listed $241,873,900 in total assets and
161,412,000 in total liabilities.  The Debtors exclusive period to
file a chapter 11 plan expires on July 19, 2007.  (Hancock Fabric
Bankruptcy News, Issue No. 1,  

MORTGAGE LENDERS: Files Schedules of Assets and Liabilities

A.    Real Property                                  $1,394,872

B.    Personal Property
B.1   Cash on Hand                                            0
B.2   Bank Accounts                                   2,762,788
B.3   Security Deposits                                 473,677
B.4   Household goods                                         0
B.5   Book, artwork and collectibles                          0
B.6   Wearing apparel                                         0
B.7   Furs and jewelry                                        0
B.8   Firearms and other equipment                            0
B.9   Insurance Policies                           Undetermined
B.10  Annuities                                               0
B.11  Interests in an education IRA                           0
B.12  Interests in pension plans
         401(k) Plan                               Undetermined
B.13  Stock and Interests
         100% SubChapter S Membership              Undetermined
B.14  Interests in partnerships or joint ventures             0
B.15  Government and corporate bonds                          0
B.16  Accounts Receivable
         Servicing Advances                             520,047
         Accrued Interest on Loan Sales               2,221,581
         Escrow Advances                              4,225,274
B.17  Alimony                                                 0
B.18  Other Liquidated Debts Owing Debtor
         Loans due from officers:
            James Pedrick                               202,837
            James T. Wessier                            189,587
B.19  Equitable or future interests                           0
B.20  Interests in estate death benefit plan                  0
B.21  Other Contingent and Unliquidated Claims     Undetermined
B.22  Patents, copyrights, and others              Undetermined
B.23  Licenses, franchises & other intangibles     Undetermined
B.24  Customer lists or other compilations         Undetermined
B.25  Vehicles                                                0
B.26  Boats, motors and accessories                           0
B.27  Aircraft and accessories                          716,204
B.28  Office Equipment                                7,149,287
B.29  Equipment and Supplies for Business             6,036,822
B.30  Inventory
         Warehoused Loans                           420,636,049
         Loans Held in Portfolio                     13,766,802
         REO Properties                                       -
B.31  Animals                                                 0
B.32  Crops                                                   0
B.33  Farming equipment and implements                        0
B.34  Farm supplies, chemicals, and feed                      0
B.35  Other Personal Property
         Estimated Balances of Prepaid Expenses
            Prepaid Insurance                           220,763
            Prepaid Rent                              2,260,748
            Prepaid Other                             2,069,875
          Potential Tax Attributes                 Undetermined
          Systems Projects in Progress             Undetermined

      TOTAL SCHEDULED ASSETS                       $464,847,213

C.    Property Claimed as Exempt                             $0

D.    Secured Claims
         Residential Funding Company LLC            443,913,086

E.    Unsecured Priority Claims                      10,177,724

F.    Unsecured Nonpriority Claims                  102,368,653

      TOTAL SCHEDULED LIABILITIES                  $556,459,464

Middletown, Conn.-based Mortgage Lenders Network USA Inc. -- is a privately held company offering
a full range of Alt-A/Non-Conforming and Conforming loan products
through its retail and wholesale channels.  The company filed for
chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No.
07-10146).  Pachulski Stang Ziehl Young Jones & Weintraub LLP
represents the Debtor.  When the Debtor filed for protection from
its creditors, it listed estimated assets and debts of more than
$100 million.  The Debtor's exclusive period to file a chapter 11
plan expires on June 5, 2007.  (Mortgage Lenders Bankruptcy
News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 215/945-7000).

ONE IP: Posts $200,457 Net Loss in Period Ended Dec. 31
One IP Voice Inc. filed its monthly operating report for December
2006 with the United States Bankruptcy Court for the District of
Connecticut, Hartford Division, on Feb. 27, 2007.

The Debtor reported a net loss of $200,457 from revenue of
$369,075, for the month ended Dec. 31, 2006.

At Dec. 31, 2006, One IP Voice Inc.'s balance sheet showed:

        Total Current Assets                   $2,747,639
        Total Assets                           $9,554,392
        Total Liabilities                      $9,815,234
        Total Shareholders' Deficit            [($260,842)]

A full-text copy of One IP Voice Inc.'s December 2006 Monthly
Operating Report is available at no charge at:


Headquartered in East Hartford, Connecticut, One IP Voice Inc.
(OTCBB: OIVO) -- is the parent
company of Farmstead Telephone Group and OIPV Corp.  One IP Voice
Inc. was formed as a result of a name change that took effect on
July 19, 2006.  Farmstead is one of the full service enterprise
telecommunications providers with a comprehensive nationwide
systems, services and parts network in the U.S.  OIPV Corp.
provides Carrier-Based Hosted Voice over Intelligent Protocol
solutions to Small to Medium Businesses nationwide.

The company and its debtor-affiliate OIPV Corp. filed for chapter
11 protection on Dec. 13, 2006 (Bankr. D. Conn. Case Nos. 06-21242
and 06-21243).  Jon P. Newton, Esq., at Reid & Riege, represents
the Debtors as Counsel.  When the Debtors filed for protection
from their creditors, One IP Voice Inc. listed total assets of
$9,452,000 and total debts of $6,692,000; and OIPV Corp. listed
total assets of $776,000 and total debts of $5,273,000.

The Debtors' exclusive period to file a chapter 11 plan expires on
April 12, 2007.

PEOPLE'S CHOICE: Shows Unaudited Balance Sheet as of Mar. 31, 2006

                  People's Choice Financial Corp.
               Unaudited Consolidated Balance Sheet
                       As of March 31, 2006


Cash and cash equivalents                           $70,623,000
Restricted cash                                      86,730,000
Mortgage loans held for sale, net                   646,682,000
Mortgage loans held for investment, net           3,719,871,000
Accrued interest receivable                          28,864,000
Derivative instruments, net                          50,300,000
Fixed assets, net                                    12,886,000
Deferred income taxes, net                           21,575,000
Income taxes receivable                              21,258,000
Other assets                                         52,958,000
TOTAL ASSETS                                     $4,711,747,000

                       LIABILITIES & EQUITY

Warehouse financing facilities                     $600,990,000
Mortgage-backed securities, net                   3,718,609,000
Other liabilities                                    49,367,000
Total liabilities                                 4,368,966,000

Stockholders' Equity
Preferred Stock                                               0
Common Stock                                            598,000
Additional paid-in capital                          340,792,000
Retained earnings (accumulated deficit)               1,391,000
Deferred compensation                                         0
Total stockholders' equity                          342,781,000

Headquartered in Irvine, California, People's Choice Financial
Corp. -- is a residential mortgage banking  
company who, through its subsidiaries, originates, sells,
securitizes and services primarily single-family, non prime,
residential mortgage loans.  People's Choice Financial Corp. and   
its debtor-affiliates, People's Choice Home Loan Inc. and People's
Choice Funding Inc.. filed for chapter 11 protection on
March 20, 2007 (Bankr. C.D. Cal. Case Nos. 07-10772, 07-10765,
07-10767).  J. Rudy Freeman, Esq., at Pachulski Stang Ziehl Young
Jones & Weintraub LLP, represents the Debtors as Counsel.  When
Debtors filed for protection from its creditors, it listed total
assets of $4,711,747 and total debts of $4,368,966,000.  The
Debtors exclusive period to file a chapter 11 plan expires on
July 18, 2007.  (People's Choice Bankruptcy News, Issue No. 1;
Bankruptcy Creditors' Service, Inc., 215/945-7000).

VESTA INSURANCE: Gaines Files February 2007 Operating Report

                      J. Gordon Gaines, Inc.
                         Income Statement
                  Month Ended February 28, 2007

Revenue from Total Sales                                $39,639
   Cost of Sales                                              0
Gross Profit                                             39,639

   Operating Expenses                                     7,563
Net Profit Operations                                    32,076

Non-Operating Income (Expenses)
   Interest Earned                                          588
   State Tax Refunds                                          0
   Non-operational income                                     0
   Sale of Property                                           0
   Stale Dated Checks Written Off                             0
   Miscellaneous Income                                     350
Net Profit (Loss)                                       $33,014

                      J. Gordon Gaines, Inc.
            Schedule of Cash Receipts and Disbursements
                  Month Ended February 28, 2007

Cash On Hand (Beginning)                               $803,563

Cash Receipts:
   Accounts Receivable                                        0
   Management Fees                                       39,639
   Loan Proceeds                                              0
   Sale of Property                                           0
   Interest Earned                                          588
   State Tax Refunds                                          0
   Non-operational Income                                     0
   Funding by Texas Receiver                            237,003
   Funding by Texas Receiver in Transit                       0
   Intercompany insurance operations                          0
   Stale Dated Checks Written Off                             0
   Miscellaneous Income                                     350
Total Receipts                                          277,579

Cash Disbursements:
   Financing costs, fees, interest                            0
   Accounting Fees (payroll fees)                         5,924
   Advertising                                                0
   Automobiles/Vehicles (repair and maintenance)              0
   Bank Fees                                                  0
   Commissions/Contract Labor                                 0
   Insurance Expense                                     26,241
   Interest Paid                                              0
   Storage Cost                                               0
   Information System Cost                               20,074
   Inventory Purchased                                        0
   Legal Fees                                                 0
   Management Fees                                            0
   Trustee Fees                                               0
   Postage                                                3,228
   Rent/Lease Payments on Real Estate                         0
   Operating Costs related to Bankruptcy                    240
   Repairs and Maintenance                                    0
   Salaries/Wages (portion paid to J.G. Gaines, Inc.)    76,576
   Wages paid not by SDR                                      0
   Secured Loan Payments                                      0
   Supplies                                                 111
   Travel & Entertainment                                     0
   Taxes                                                 37,091
   Unsecured Loan Payments                                    0
   Utilities                                             52,641
   Others                                                22,440
Total Disbursements                                     244,565

Surplus or Deficit                                       33,014
Cash on Hand (End)                                     $836,577

Headquartered in Birmingham, Alabama, Vesta Insurance Group, Inc.
(Other OTC: VTAI.PK) -- is a holding
company for a group of insurance companies that primarily offer
property insurance in targeted states.

Wyatt R. Haskell, Luther S. Pate, UV, and Costa Brava Partnership
III, L.P., filed an involuntary chapter 7 petition against the
company on July 18, 2006 (Bankr. N.D. Ala. Case No. 06-02517).
The case was converted to a voluntary chapter 11 case on Aug. 8,
2006 (Bankr. N.D. Ala. Case No. 06-02517).  Eric W. Anderson,
Esq., at Parker Hudson Rainer & Dobbs, LLP, represents the Debtor.
R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker,
LLC, represents the petitioning creditors.  In its schedules of
assets and liabilities, Vesta listed $14,919,938 in total assets
and $214,278,847 in total liabilities.

J. Gordon Gaines Inc. is a Vesta Insurance-owned unit that
manages the company's numerous insurance subsidiaries and employs
the headquarters workers.  The company filed for chapter 11
protection on Aug. 7, 2006 (Bankr. N.D. Ala. Case No. 06-02808).
Eric W. Anderson, Esq., at Parker Hudson Rainer & Dobbs, LLP,
represent the Debtor in its restructuring efforts.   In its
schedules of assets and liabilities, Gaines listed $19,818,094 in
total assets and $16,046,237 in total liabilities.

On Aug. 1, 2006, the District Court of Travis County, Texas
entered an order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.  (Vesta
Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service,
Inc., 215/945-7000).

WERNER LADDER: PA Posts $9.9 Mil. Net Loss in February 2007

         Werner Holding Co. (PA), Inc., and Subsidiaries
              Unaudited Consolidated Balance Sheet
                     As of February 28, 2007
                        ($ in thousands)

Current Assets:
Cash and cash equivalents                                $2,015
Receivables, net                                         53,201
Income taxes receivable (payable)                         1,425
Inventories, net                                         64,396
Property, plant and equipment held for sale,
   at cost less accumulated depreciation                 16,590
Prepaid insurance and other                               6,333
Total current assets                                    143,960

Property, Plant & Equipment, Net                         51,468
Other assets:
Deferred financing fees, net                              8,916
Investment in subsidiaries                                    0
Other noncurrent assets                                   6,610
Total other assets                                       15,526
TOTAL ASSETS                                           $210,954

Current liabilities:
Accounts payable                                        $16,985
Accrued liabilities                                      23,485
Intercompany payable (receivables)                            0
First lien revolving credit facility                     39,479
Current maturities of long-term debt                    260,006
Total current liabilities                               339,955

Long-Term Liabilities:
Long-term debt                                           13,754
Reserve for product liability and
   workers' compensation claims                          11,580
Other long-term obligations                               3,970
Liabilities subject to compromise                       213,088
Total Liabilities                                       582,347

Convertible preferred stock                             100,592

Shareholders' Deficit:
Common stock                                                  1
Additional paid-in-capital                               17,017
Retained earnings (deficit)                            (475,762)
Accumulated other comprehensive income (loss)           (13,241)
Total Shareholders Deficit                             (471,985)

         Werner Holding Co. (PA), Inc., and Subsidiaries
         Unaudited Consolidated Statement of Operations
                     February 1 to 28, 2007
                        ($ in thousands)

Net sales                                               $24,080
Total cost of sales                                      19,180
Gross profit                                              4,900

Total operating expenses                                  9,020

Operating income (loss)                                  (4,120)
Equity in net income (loss) of subsidiaries                   0
Other income (expense), net                                 (69)
Income (loss) before interest,
reorganization items and taxes                           (4,189)

Reorganization Items:
  (Restructuring Process Fees)                           (2,241)
   Interest Income                                           75
Reorganization Items, Net                                (2,166)
Interest (loss) before interest and taxes                (6,355)
Inter-company interest expense                                0
Interest expense                                          3,918
Income (loss) before income taxes                       (10,273)
Provision (benefit) for income taxes                       (309)
Net Income (Loss)                                       ($9,964)

        Werner Holding Co. (PA), Inc., and Subsidiaries
         Unaudited Consolidated Statement of Cash Flows
                     February 1 to 28, 2007
                        ($ in thousands)

Cash flows provided (used) by operating activities     ($10,485)

Cash Flows From Investing Activities:
Capital expenditures, net                                  (143)
Net cash used in investing activities                      (143)

Cash Flows From Financing Activities:
Capital lease payments                                     (175)   
Net cash provided (used) by financing activities           (299)

Net increase (decrease) in cash and equivalents         (10,927)
Cash and equivalents at January 1, 2007                  12,942
Cash and equivalents at January 31, 2007                 $2,015

Based in Greenville, Pennsylvania, Werner Holding Co. (DE) Inc.
aka Werner Ladder Co. --   
manufactures and distributes ladders, climbing equipment and
ladder accessories.  The company and three of its affiliates filed
for chapter 11 protection on June 12, 2006 (Bankr. D. Del. Case
No. 06-10578).

The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel.  Rothschild Inc. is the
Debtors' financial advisor.  The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-counsel.  
Jefferies & Company serves as the Creditor Committee's financial
advisor.  At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000.  (Werner Ladder
Bankruptcy News, Issue No. 24; Bankruptcy Creditors' Service Inc. (215/945-7000).


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S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
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