TCR_Public/070405.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, April 5, 2007, Vol. 11, No. 81

                             Headlines

ACA ABS: Moody's Rates $22.5 Million Class C Notes at Ba2
ACCEPTANCE INSURANCE: Plan-Filing Period Extended to August 9
ACCREDITED HOME: Closes $230 Million Farallon Capital Financing
ACE SECURITIES: Moody's Reviews Ratings and May Downgrade
AMCON DISTRIBUTING: Dec. 31 Balance Sheet Upside-Down by $573,800

AMERICAN HOME: Moody's Rates Class II-M-5 Notes at Ba2
AMERICAN HOME: Moody's Puts Low-B Ratings on 2 Note Classes
AMERICAST TECH: Likely Debt Financed Buy Cues S&P's Negative Watch
AMR CORP: Furnishes Update on Efforts to Strengthen Balance Sheet
ANITA EVANS: Case Summary & 12 Largest Unsecured Creditors

APIDOS CDO: Moody's Rates $12 Million Class D Notes at Ba2
ARLINGTON STREET: Moody's Junks Rating on $37 Mil. Class B Notes
AURIGA CDO: Moody's Rates $22.5 Mil. Class I Junior Notes at Ba2
AVANEX CORP: Incurs $8.6 Million Net Loss in Qtr. Ended Dec. 31
BEAR STEARNS: Fitch Lifts Rating on Class L Certs. to BB- from B+

BILLING SERVICES: S&P Retains Negative CreditWatch on Ratings
BRAINTECH INC: Smythe Ratcliffe Raises Going Concern Doubt
BRIGHAM EXPLORATION: Prices $35 Million Add-On to 9-5/8% Sr. Notes
BRODER BROS: Weak Operating Results Cue S&P's Negative Outlook
BROWNWOOD HOSPITALITY: Voluntary Chapter 11 Case Summary

CALYPTE BIOMEDICAL: Inks Subscription Pacts with Four Investors
CELSIA TECHNOLOGIES: Low Revenues, Deficit Cue Going Concern Doubt
CENTRAL VERMONT: Earns $18.4 Million in Year Ended December 31
CKE RESTAURANTS: Earns $50.2 Million in Fiscal Year Ended Jan. 31
CONSTRUCTION COMPLIANCE: Case Summary & 20 Largest Creditors

CREDIT SUISSE: Moody's Junks Rating on $12.6 Mil. Class S Certs.
CREDIT SUISSE: Moody's Rates $31.7 Million Class L Certs. At Ba1
DEAN FOODS: Moody's Cuts Corporate Family Rating to Ba3 from Ba1
DIGITAL RECORDERS: Losses and Deficit Cue Going Concern Doubt
DIRECTV HOLDINGS: S&P Lifts Rating on $2 Bil. Facilities to BB+

DOV PHARMA: PricewaterhouseCoopers Raises Going Concern Doubt
EDDIE BAUER: BDO Siedman Expresses Going Concern Doubt
EXCO RESOURCES: Closes $1.5 Billion Vernon & Ansley Acquisition
FAIRPOINT COMM: 2006 Fourth Quarter Earnings Lowers to $3.8 Mil.
FIRST HORIZON: Fitch Puts Low-B Ratings on Class B-4 & B-5 Certs.

FIRST HORIZON: Fitch Puts Low-B Ratings on 2 Certificate Classes
FIRST HORIZON: Fitch Puts Low-B Ratings on Class B-4 & B-5 Certs.
FONTAINEBLEAU HOLDINGS: Moody's Places Corp. Family Rating at B2
GIBRALTAR LIMITED: Moody's to Withdraw Ratings on 5 Note Classes
GLEN DEVELOPMENT: General Unsecured Creditors May Get Full Payment

GRAMERCY COURT: Case Summary & 17 Largest Unsecured Creditors
HERBALIFE LTD: Whitney Bid Rejection Cues S&P to Retain Watch
HEXCEL CORP: Good Performance Cues Moody's to Upgrade Ratings
HOLYOKE HOSPITAL: Moody's Holds Ba1 Rating on $11.4 Million Bonds
INTEGRATED ALARM: Closes Merger Transaction with Protection One

INTEGRATED ALARM: Merger Prompts Moody's to Withdraw Ratings
JEAN COUTU: Inks Settlement Agreement with 8-1/2% Noteholders
JORDAN INDUSTRIES: Ernst & Young Raises Going Concern Doubt
KEPLER HOLDINGS: Moody's Rates $200 Million Senior facility at Ba2
LAND O'LAKES: Earns $44.5 Million in Quarter Ended December 31

MALDEN MILLS: Court Converts Chap. 11 Case to Chap. 7 Liquidation
MATRITECH INC: Losses Cue PwC to Raise Going Concern Doubt
METCARE RX: Case Summary & 20 Largest Unsecured Creditors
METROLOGIC INSTRUMENTS: Moody's Cuts Corporate Family Rating to B3
MKT INC: Case Summary & 20 Largest Unsecured Creditors

MORGAN STANLEY: Moody's Holds Ba1 Rating on Class N-SDF Certs.
NAKOMA LAND: Trustee Taps CB Richard as Real Estate Broker
NATIONAL GAS: Chapter 11 Trustee Hires GSC as Energy Consultant
NBO SYSTEMS: Tanner LC Raises Going Concern Doubt
NEFF CORP: Lightyear Merger Deal Prompts S&P's Negative Watch

NEFF RENTAL: Neff Corp/Capital Deal Cues Moody's to Review Ratings
OMEGA HEALTHCARE: Closes Public Offering of 7.13 Million Shares
PAETEC CORP: Dec. 31 Balance Sheet Upside-Down by $93 Million
PROTECTION ONE: Closes Merger Transaction with Integrated Alarm
PROTECTION ONE: Merger Cues Moody's to Hold B2 Corp. Family Rating

ROBECO CDO: Moody's Pares Rating on Class B-2 Notes to B1 from Ba2
ROSEDALE MEDICAL: Case Summary & Five Largest Unsecured Creditors
SACO I: S&P Puts Default Rating on 2004-1 Class B-2 Loans
SAMHO TOUR: Case Summary & 20 Largest Unsecured Creditors
SANDRA ROTHMAN: Voluntary Chapter 11 Case Summary

SGP ACQUISITION: Plan Confirmation Hearing Set for April 11
SOLO CUP: Posts $373.2 Million Net Loss in Year Ended Dec. 31
SPECTRUM SIGNAL: Gets Going Concern Qualification from KPMG LLP
SPECTRUM SIGNAL: Restates Financial Results for Two Fiscal Years
SYNIVERSE TECH: Increased Debt Cues Moody's Negative Outlook

TABS 2007-7: Moody's Rates $32.5 Million Secured Notes at Ba2
TAHOMA CDO: Moody's Rates $5 Million Class E Senior Notes at Ba1
TARGETED GENETICS: Ernst & Young Raises Going Concern Doubt
TECH DATA: Earns $36.1 Million in Quarter Ended December 31
TK ALUMINUM: Unit Launches Tender Offer of EUR35 Mil. Senior Notes

TRIMARAN VII: Moody's Rates $12.5 Million Class B-2L Notes at Ba2
TUPPERWARE BRANDS: Loan Reduction Prompts S&P to Hold BB Rating
VANGUARD CAR: Moody's Holds Corporate Family Rating at B1
VCA ANTECH: Earns $19 Million in Quarter Ended December 31
VIKING SYSTEMS: Squar Milner Expresses Going Concern Doubt

WACHOVIA BANK: Moody's Holds Low-B Ratings on 11 Cert. Classes
WACHOVIA BANK: Moody's Holds Low-B Ratings on Class K & RC Certs.
WHITE BIRCH: Moody's Rates Proposed $550 Mil. Senior Loan at B2
WHX CORPORATION: Unit Amends Wachovia & Steel Loan Agreements
WORLD HEART: Chronic Losses Cue PwC to Raise Going Concern Doubt

WORNICK CO: Financial Filing Delay Cues S&P to Junk Ratings
XERIUM TECHNOLOGIES: Earns $3.2 Million in Quarter Ended Dec. 31

* Edward Zaelke Named Managing Partner of Chadbourne & Parke

                             *********

ACA ABS: Moody's Rates $22.5 Million Class C Notes at Ba2
---------------------------------------------------------
Moody's Investors Service assigned ratings to notes issued by ACA
ABS 2007-1, Ltd.:

   * Aaa to the  $930,000,000 Class A1S Variable Funding Senior
     Secured Floating Rate Notes Due 2047;

   * Aaa to the  $125,000,000 Class A1J Senior Secured Floating
     Rate Notes Due 2047;

   * Aa2 to the  $198,000,000 Class A2 Senior Secured Floating
     Rate Notes Due 2047;

   * A2 to the  $72,000,000 Class A3 Secured Deferrable Interest
     Floating Rate Notes Due 2047;

   * Baa1 to the  $30,000,000 Class B1 Mezzanine Secured
     Deferrable Interest Floating Rate Notes Due 2047;

   * Baa2 to the  $40,000,000 Class B2 Mezzanine Secured
     Deferrable Interest Floating Rate Notes Due 2047;

   * Baa3 to the  $22,500,000 Class B3 Mezzanine Secured
     Deferrable Interest Floating Rate Notes Due 2047; and

   * Ba2 to the  $22,500,000 Class C Mezzanine Secured Deferrable
     Interest Floating Rate Notes Due 2047.

The Moody's ratings of the Notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the Notes' governing documents, and are based on the expected loss
posed to Noteholders, relative to the promise of receiving the
present value of such payments.  The ratings reflect the risks due
to the diminishment of cash flow from the underlying portfolio
consisting of RMBS Securities, CMBS Securities and other
Asset-Backed Securities and Synthetic Securities due to defaults,
the transaction's legal structure and the characteristics of the
underlying assets.

ACA Management , L.L.C. will manage the selection, acquisition and
disposition of collateral on behalf of the Issuer.


ACCEPTANCE INSURANCE: Plan-Filing Period Extended to August 9
-------------------------------------------------------------
The Honorable Timothy J. Mahoney of the U.S. Bankruptcy Court
for the District of Nebraska in Omaha further extended Acceptance
Insurance Companies Inc.'s exclusive right:

   a) to file a Chapter 11 plan until Aug. 9, 2007;
   b) to solicit acceptances of that plan until Oct. 9, 2007.

The Debtors' exclusive period to file a plan expired on Feb. 9,
2007.

The Debtor told the Court that a further extension of the
exclusivity periods is necessary to allow completion of the
liquidation of its assets.

The Debtor also continues to diligently manage and resolve claims
within Acceptance Insurance Company, a subsidiary of the Debtor
and one of the Debtor's principal assets, in an effort to maximize
the value of AIC for the benefit of the Debtor's creditors.  The
claims resolution process within AIC is not yet at a stage that
will permit the Debtor to structure an optimal plan of
reorganization.

The Debtor's takings claim against the United States of America is
currently on appeal to the Federal Circuit Court of Appeals based
on a jurisdictional issue.  A decision on the merits of the case
has not been issued.

Both the Debtor and AIC are currently engaged in litigation with
Granite Reinsurance Ltd. regarding a $10 million claim filed
against the Debtor in it bankruptcy case, a $10 million adversary
proceeding filed by Granite Re against AIC and a $6 million
adversary proceeding filed by the Debtor against Granite Re.

All of the proceedings in the Granite Re Litigation have been
procedurally consolidated and are pending in this Court.  The
Committee has intervened in the Granite Re Litigation in order to
represent the interests of their constituents.

Once the Granite Re Litigation has been resolved and the run-off
from AIC's business has progressed to the point that AIC's assets
can be sold, the Debtor will be in a position to propose a plan of
liquidation providing for the distribution of the Debtor's assets
to its creditors.

The Debtor revealed that the Committee has consented to the
extension.

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.


ACCREDITED HOME: Closes $230 Million Farallon Capital Financing
---------------------------------------------------------------
Accredited Home Lenders Holding Co. has closed the financing
transaction with Farallon Capital Management(R), L.L.C. and
related entities.  Accredited also provided an update on the
company's liquidity, the company's business, developments with
respect to the company's independent auditors, and other matters.

                     Farallon Financing

The company has closed a $230 million term loan facility provided
by Farallon.  The loans under the facility have a five-year term
and may be repaid by Accredited at any time over the life of the
loan, subject to certain conditions and prepayment fees.  The
loans are secured by a pledge of certain subsidiaries, including
all domestic subsidiaries, and a security interest over certain
assets.

In connection with the financing, Farallon received warrants to
acquire approximately 3.23 million shares of the Company's stock
at an exercise price of $10 per share.  The warrants will expire
in ten years from the issuance date.  As contemplated, Farallon
also was granted certain preemptive rights, registration rights
and board observer rights.  Proceeds of the term loan can be used
for general working capital, the funding of mortgage loans, and
other corporate needs.

Farallon manages equity capital for institutions and high net
worth individuals and is headquartered in San Francisco,
California.  Farallon is a registered investment advisor with the
United States Securities and Exchange Commission.

                  Other Liquidity Developments

In addition, Accredited reported these developments regarding its
available financing capacity:

    a) Accredited has obtained a new $500 million warehouse
       facility from a large commercial bank and renewed one of
       its existing warehouse facilities with an investment
       banking firm for $600 million.  The company is also in
       discussions with another investment banking firm regarding
       the possible renewal of an existing $650 million warehouse
       facility.

    b) As a result of the sale of $2.7 billion of loans and the
       closing of the Farallon term loan, Accredited repaid the
       majority of its warehouse facilities.  The company
       terminated four warehouse lines after repayment of these
       facilities in full.

In addition, Accredited has received further waivers of certain
covenants on three of its warehouse facilities, which have a
combined total of approximately $100 million in outstanding
advances at March 31, 2007.  Accredited has agreed with these
lenders that Accredited will not draw down additional borrowings
under the facilities at the current time.  The company plans to
sell much of the collateral in these warehouse lines in the
ordinary course of business, as described below in the "Loan
Dispositions" section.  After the loan sales are completed and
these three facilities are repaid in full, these facilities may be
terminated or renewed.  Certain of these lenders have indicated a
willingness to renew their facilities with the company.

c) In addition, Accredited has sold all the mortgage loans
collateralizing its asset-backed commercial paper program and has
collateralized the remaining $80 million in commercial paper notes
outstanding with cash.  The company has agreed with the swap
counterparties supporting the asset-backed commercial paper
program to discontinue current use of the commercial paper
conduit.  Accredited will consider reactivating or terminating the
program depending upon future market conditions and the
availability of various credit providers.  If the program is
terminated, the company intends to repay the commercial paper
outstanding with the cash held as collateral in the conduit.

As a result of the developments outlined above, the company has
approximately $350 million of available cash on hand at March 31,
2007, not including the cash collateralizing the asset-backed
commercial paper program.

                          Originations

The company originated approximately $1.8 billion of mortgage
loans in the U.S. and Canada during the quarter ended March 31,
2007.

                        Loan Dispositions

The company closed a $760 million asset-backed, on-balance sheet
securitization on Jan. 30, 2007.  The company intends to evaluate
additional securitizations as an alternative to whole loan sales
in the future.

Accredited sold approximately $800 million and, as previously
disclosed, $2.7 billion of mortgage loans for cash in the first
quarter of 2007.  The approximately $800 million sold at a
weighted average net price of 100.63%.  The $2.7 billion sale in
March included substantially all performing and non-performing
loans in inventory on March 6, 2007 and will result in a pre-tax
charge of approximately $160 million.

In March, the company signed a $400 million forward sale
agreement, priced at 100.625%, for loans to be delivered in the
second quarter.

                         Company Outlook

"We are pleased with the closing of the term loan with Farallon,"
Chairman and Chief Executive Officer James A. Konrath remarked.  
"The loan is a key component of our plan to improve the company's
liquidity in order to maneuver in a non-prime mortgage market that
has become even more turbulent than the market we described in our
conference call on Feb. 14, 2007.  The Farallon loan, along with
the restructuring of our warehouse financing capacity and recent
loan dispositions, provides Accredited with greater flexibility in
originating loans, securitizing ongoing loan production, and
pursuing various strategic options."

                      Auditors' Resignation

Accredited is reviewing the potential impact of Grant Thornton
LLP's resignation on a variety of issues, including the obligation
of the company to provide Regulation AB certifications with
respect to its securitizations, requirements under certain state
and provincial regulatory licenses to provide annual audited
financial statements, and the effect of the additional delay in
completing its 2006 audit on its NASDAQ listing status, among
others.  Accredited has contacted most state regulatory
authorities regarding the delay in filing its Annual Report on
Form 10-K.  The company has been orally told by the regulatory
authorities in affected states that they will allow the company
additional time to complete its year-end audit.  The company
intends to continue its origination operations during this period.

                   Pursuing Strategic Options

Accredited is continuing to work with its financial and legal
advisors to explore various strategic options.  Strategic options
could include, but are not limited to, raising additional capital,
a merger, or other strategic transaction.  There can be no
assurance that the company's pursuit of strategic options will
result in any transactions being consummated.

                  About Accredited Home Lenders

Headquartered in San Diego, California, Accredited Home Lenders
Holding Co. (NASDAQ:LEND) -- http://www.accredhome.com/-- is a  
mortgage company operating throughout the U.S. and in Canada.
Founded in 1990, the company originates, finances, securitizes,
services, and sells non-prime mortgage loans secured by
residential real estate.


ACE SECURITIES: Moody's Reviews Ratings and May Downgrade
---------------------------------------------------------
Moody's Investors Service has placed under review for possible
upgrade thirteen certificates from four securitizations done by
ACE Securities Corp. in 2003.  Moody's also placed under review
for possible downgrade four certificates from three deals closed
in 2002 and 2003.  The underlying collateral for these
securitizations consists of fixed-rate and adjustable-rate
subprime mortgage loans.

The actions are based on the fact that the bonds' current credit
enhancement levels, including excess spread where applicable, are
either high or low compared to the current projected loss numbers
for the current rating level.

These are the rating actions:

   * ACE Securities Corp. Home Equity Loan Trust

   * Review for possible upgrade:

      -- Series 2003-FM1, Class M-1, current rating Aa2, under
         review for possible upgrade;

      -- Series 2003-FM1, Class M-2, current rating A2, under
         review for possible upgrade;

      -- Series 2003-FM1, Class M-3, current rating A3, under     
         review for possible upgrade;

      -- Series 2003-FM1, Class M-4, current rating Baa1, under
         review for possible upgrade;

      -- Series 2003-OP1, Class M-1, current rating Aa2, under
         review for possible upgrade;

      -- Series 2003-OP1, Class M-2, current rating A2, under
         review for possible upgrade;

      -- Series 2003-OP1, Class M-3, current rating A3, under
         review for possible upgrade;

      -- Series 2003-OP1, Class M-4, current rating Baa1, under
         review for possible upgrade;

      -- Series 2003-HS1, Class M-1, current rating Aa2, under
         review for possible upgrade;

      -- Series 2003-HS1, Class M-2, current rating A2, under
         review for possible upgrade;

      -- Series 2003-HS1, Class M-3, current rating A3, under
         review for possible upgrade;

      -- Series 2003-HE1, Class M-1, current rating Aa2, under
         review for possible upgrade; and

      -- Series 2003-HE1, Class M-2, current rating A2, under
         review for possible upgrade.

   * Review for possible downgrade:

      -- Series 2002-HE1, Class M-3, current rating B2, under
         review for possible downgrade;

      -- Series 2002-HE1, Class M-4, current rating Ca, under
         review for possible downgrade;

      -- Series 2003-HE1, Class M-6, current rating Baa3, under
         review for possible downgrade; and

      -- Series 2003-OP1, Class B, current rating Ba2, under
         review for possible downgrade.


AMCON DISTRIBUTING: Dec. 31 Balance Sheet Upside-Down by $573,800
-----------------------------------------------------------------
AMCON Distributing Company's balance sheet at Dec. 31, 2006,
showed $93,053,989 in total assets and $93,627,789 in total
liabilities, resulting in a $573,800 stockholders' deficit.

The company's stockholders' deficit at Sept. 30, 2006, stood at
$1,747,069.

For the fiscal first quarter ended Dec. 31, 2006, the company
reported $1,170,269 of net income on $209,366,149 of sales,
compared with a $1,261,801 net loss on $198,217,081 of sales in
the prior year period.

                     Sale of Hawaiian Natural

On Nov. 20, 2006, all of the operating assets of Hawaiian Natural
Water Company, Inc., were sold for approximately $3.8 million in
cash, plus the buyer's assumption of all operating and capital
leases.  

The significant operating assets consisted of accounts receivable,
inventory, furniture and fixtures, intellectual property and all
of its bottling equipment.  

In connection with the sale, the company has recorded a
$1.6 million pretax gain on disposal of discontinued operations in
the first quarter of fiscal 2007.  

Hawaiian Natural, which was headquartered in Pearl City, Hawaii,
was part of the company's former beverage segment.  Hawaiian
Natural bottled, marketed and distributed Hawaiian natural
artesian water, purified water and other limited production
co-packaged products in Hawaii and the mainland.

Full-text copies of the companies fiscal first quarter financials
are available for free at http://ResearchArchives.com/t/s?1cc1

                      About AMCON Distributing

AMCON Distributing Company (AMEX:DIT) -- http://www.amcon.com/--  
is a wholesale distributor of consumer products in the Great
Plains and Rocky Mountain regions.  In addition, the company
operates 13 retail health food stores in Florida and the Midwest.  
The company has five distribution centers that sell approximately
14,000 different consumer products, including cigarettes and
tobacco products, candy and other confectionery, beverages,
groceries, paper products, health and beauty care products, frozen
and chilled products, and institutional food service products.  
AMCON also operates six Chamberlin's Market & Cafe retail health
food stores in Florida and seven Akin's Natural Foods Market in
the Midwest.  These stores carry natural supplements, groceries,
health and beauty care products and other food items.


AMERICAN HOME: Moody's Rates Class II-M-5 Notes at Ba2
------------------------------------------------------
Moody's Investors Service has assigned an Aaa rating to the Class
I-1A, I-2A, I-3A and II-A notes issued by American Home Mortgage
Investment Trust 2007-A, a Aa1 rating to the Class III-A notes,
and ratings ranging from Aa2 to Ba2 to the subordinate notes in
the deal.

The group I notes are backed by adjustable-rate and fixed rate
first lien residential mortgage loans.  The ratings are based
primarily on the credit quality of the loans and on the protection
against credit losses provided by subordination,
overcollateralization, excess spread, an interest rate cap, and an
interest rate swap.  Moody's expects collateral losses in group I
to range from 1.25% to 1.45%.

The group II notes are backed by fixed-rate closed-end junior lien
residential mortgage loans.  The ratings are based primarily on
the credit quality of the loans and on the protection against
credit losses provided by subordination, overcollateralization,
excess spread, an interest rate cap, and an interest rate swap.
Moody's expects collateral losses in group II to range from 7.75%
to 8.25%.

The group III notes are backed by home equity line of credit
residential mortgage loans.  The ratings are based primarily on
the financial guaranty insurance policy provided by Assured
Guaranty Corp, whose insurance financial strength is rated Aa1 by
Moody's.  The notes also benefit from excess spread and
overcollateralization.  Moody's expects collateral losses to range
from 5% to 5.5%.

American Home Mortgage Servicing, Inc. will service the mortgage
loans in the transaction.  Wells Fargo Bank N.A. will act as
master servicer for the loans in groups I and II.  GMAC Mortgage,
LLC. will act as back-up servicer for the loans in group III.
Moody's has assigned Wells Fargo Bank N.A. its top servicer
quality rating of SQ1 as a master servicer of residential mortgage
loans.

These are the rating actions:

   * American Home Mortgage Investment Trust 2007-A

   * Mortgage-Backed Notes, Series 2007-A

                    Class I-1A, Assigned Aaa
                    Class I-2A, Assigned Aaa
                    Class I-3A-1, Assigned Aaa
                    Class I-3A-2, Assigned Aaa
                    Class II-A,   Assigned Aaa
                    Class III-A,  Assigned Aa1
                    Class I-M-1,  Assigned Aa3
                    Class II-M-1, Assigned Aa2
                    Class II-M-2, Assigned A3
                    Class II-M-3, Assigned Baa2
                    Class II-M-4, Assigned Baa3
                    Class II-M-5, Assigned Ba2


AMERICAN HOME: Moody's Puts Low-B Ratings on 2 Note Classes
-----------------------------------------------------------
Moody's Investors Service has assigned an Aaa rating to the senior
notes issued by American Home Mortgage Investment Trust 2007-SD1
and ratings ranging from Aa2 to B2 to the subordinate notes in the
transaction.

The securitization is backed by weaker-than-average scratch and
dent residential mortgages.  The ratings are based primarily on
the credit quality of the loans and on the protection against
credit losses provided by subordination.  The notes also benefit
from residual cash flow from the American Home Mortgage Investment
Trust 2007-A transaction.  Moody's expects collateral losses to
range from 15.85% to 16.35%.

American Home Mortgage Servicing, Inc. will service the mortgage
loans in the transaction and Wells Fargo Bank N.A. will act as
master servicer.  Moody's has assigned Wells Fargo Bank N.A. its
top servicer quality rating of SQ1 as a master servicer of
residential mortgage loans.

These are the rating actions:

   * American Home Mortgage Investment Trust 2007-SD1

   * Mortgage-Backed Notes, Series 2007-SD1

                    Class IV-A,   Assigned Aaa
                    Class IV-M-1, Assigned Aa2
                    Class IV-M-2, Assigned A2
                    Class IV-M-3, Assigned Baa2
                    Class IV-M-4, Assigned Ba2
                    Class IV-M-5, Assigned B2


AMERICAST TECH: Likely Debt Financed Buy Cues S&P's Negative Watch
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' rating on
AmeriCast Technologies Inc.'s senior unsecured notes
on CreditWatch with negative implications, reflecting the
possibility that the company might finance its pending acquisition
of Atlas Castings and Technology with senior secured debt, and as
a result, further disadvantage the currently outstanding senior
unsecured notes.
     
S&P 'B' corporate credit rating on AmeriCast was affirmed and not
placed on CreditWatch.  The outlook is stable.
     
S&P will resolve the CreditWatch listing after reviewing
AmeriCast's capital structure upon completion of the acquisition
or its cancellation.  Standard & Poor's could lower the rating on
senior unsecured notes one notch to 'CCC+'.  Alternatively, we
could affirm the rating at 'B-'.


AMR CORP: Furnishes Update on Efforts to Strengthen Balance Sheet
-----------------------------------------------------------------
AMR Corporation, the parent company of American Airlines, Inc.,
provided an update on actions taken in the first quarter of 2007
as part of its ongoing efforts to strengthen its balance sheet and
build a stronger financial foundation.
    
American Airlines has paid in full the $285 million principal
balance of its senior secured revolving credit facility, which had
been fully drawn since its establishment in December 2004.  AMR's
$444 million term loan facility remains outstanding.
    
The company said that the revolving credit facility may be
redrawn, subject to certain conditions, and repaid from time to
time depending on various factors, such as economic and industry
conditions and the company's financial condition.
    
American Eagle Airlines, Inc., its wholly owned subsidiary, has
prepaid $79 million in principal amount of aircraft debt.  The
prepayment, which occurred in February, is incremental to AMR's
$1.3 billion in scheduled principal payments in 2007.
    
AMR anticipates ending the first quarter of 2007 with
$5.8 billion in cash and short-term investments, including a
restricted balance of nearly $500 million, compared to a cash and
short-term investment balance of $4.8 billion, including a
restricted balance of $510 million, in the first quarter of 2006.
    
AMR also said that it expects to complete by mid-April the
refinancing of $350 million in municipal bonds that originally
were issued in 1990 to help fund the development of American's
Alliance Maintenance and Engineering Base in Fort Worth, Texas.

The closing of the transaction is subject to certain government
approvals.  The refinanced bonds, to be issued by AllianceAirport
Authority, Inc., will have a blended interest rate of 5.46%, down
from a rate of 7.5% in the current bonds, and a final maturity of
Dec. 1, 2029.
   
AMR estimates that by paying down the revolving credit facility
balance, prepaying the aircraft debt and refinancing the
maintenance facility bonds, as described above, it will eliminate
$15 million of its annual net interest expense.
    
"The company believes that these actions illustrate its continued
progress in strengthening its balance sheet, which is an important
component of the company's Turnaround Plan that has helped to
position the company for long-term success," Thomas W. Horton,
executive vice president of finance and planning and chief
financial officer of AMR said.  "While there is more work to
do, the company is building a stronger company by reducing debt
and increasing liquidity while continuing to find ways to grow
revenue and reduce costs."
    
AMR's balance sheet improvement include:

   * more than $1.1 billion, raised through three equity
     issuances in the past 17 months, including the sale of
     13 million new shares in January that raised $500 million;
     
   * reduced total debt, which includes the principal   
     amount of airport facility tax-exempt bonds and the present
     value of aircraft operating lease obligations, to
     $18.4 billion at the end of the fourth quarter of 2006,
     compared to $20.1 billion a year earlier, the company expects
     to end the first quarter of 2007 with total debt of $17.6
     billion;
     
   * reduced net debt, which is defined as total debt less
     unrestricted cash and short-term investments, from
     $16.3 billion at the end of 2005 to $13.6 billion at the end
     of 2006, the Company expects to end the first quarter of 2007
     with net debt of $12.3 billion.

                          About AMR Corp.

Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines,
Inc., -- http://www.aa.com/-- a worldwide scheduled passenger  
airline.  At the end of 2006, American provided scheduled jet
service to approximately 150 destinations throughout North
America, the Caribbean, Latin America, Europe and Asia.  American
is also a scheduled airfreight carrier, providing freight and mail
services to shippers throughout its system.  

Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines, Inc. and Executive
Airlines, Inc. and does business as "American Eagle."  American
Beacon Advisors, Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.

                           *     *     *

As reported in the Troubled Company Reporter on March 29, 2007,
Moody's Investors Service raised the debt ratings of AMR
Corporation and its subsidiaries, including the corporate family
rating, to 'B2'.  Moody's also raised the ratings of most tranches
of AMR's Enhanced Equipment Trust Certificates, affirmed the SGL-2
rating, and increased the Loss Given Default rate to 30-LGD3 on
the secured debt and to 83-LGD5 on the senior unsecured debt.  The
outlook is stable.


ANITA EVANS: Case Summary & 12 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: Anita Yvonne Evans
        aka Anita Yvonne Jackson
        4380 Portchester Way
        Snellville, GA 30039

Bankruptcy Case No.: 07-65008

Chapter 11 Petition Date: March 30, 2007

Court: Northern District of Georgia (Atlanta)

Judge: Mary Grace Diehl

Debtor's Counsel: Jerry A. Daniels, Esq.
                  Suite 300 175 Gwinnett Drive
                  Lawrenceville, GA 30045
                  Tel: (770) 962-4070

Total Assets: $1,118,509

Total Debts:  $1,088,837

Debtor's 12 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Daimler Chrysler Financial                              $21,000
Services
c/o MacDowell & Associates
P.O. Box 450849
Atlanta, GA 30345

G.M.A.C.                         2004 Chevrolet         $16,915
P.O. Box 3100                    Impala
Midland, TX 79702                value of
                                 security:
                                 $10,925

Christopher James                                       $17,422
c/o William F. Rucker, Esq.
215 North McDonough Street
Decatur, GA 30030

Rhodes, Inc.                     value of                $8,311
                                 security:
                                 $1,500

Washington Mutual                credit card             $5,861
                                 purchases           

Capital One                      credit card             $5,000
                                 purchases

U.S. Department of Education     student loan            $5,000

Citifinancial Services, Inc.     loan                    $4,655

Bank of America VISA             credit card             $3,984
                                 purchases

S.S.T., Inc.                     credit card             $1,123

H.F.C.                           loan                      $988

H.S.B.C. Card Services           credit card               $400
                                 purchases


APIDOS CDO: Moody's Rates $12 Million Class D Notes at Ba2
----------------------------------------------------------
Moody's Investors Service assigned these ratings to Notes issued
by Apidos CDO V:

   * Aaa to the $130,000,000 Class A-1 Senior Secured Floating
     Rate Notes due 2021;

   * Aaa to the $150,000,000 Class A-1-S Senior Secured Floating
     Rate Notes due 2021;

   * Aa1 to the $17,000,000 Class A-1-J Senior Secured Floating
     Rate Notes due 2021;

   * Aa2 to the $19,000,000 Class A-2 Senior Secured Floating Rate
     Notes due 2021;

   * A2 to the $21,000,000 Class B Senior Secured Deferrable
     Floating Rate Notes due 2021;

   * Baa2 to the $18,000,000 Class C Senior Secured Deferrable
     Floating Rate Notes due 2021 and

   * Ba2 to the $12,000,000 Class D Secured Deferrable Floating
     Rate Notes due 2021.

The Moody's ratings of the Notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the Notes' governing documents, and are based on the expected loss
posed to Noteholders, relative to the promise of receiving the
present value of such payments.

The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting primariy of Senior
Secured Loans due to defaults, the transaction's legal structure
and the characteristics of the underlying assets.

Apidos Capital Management, LLC will manage the selection,
acquisition and disposition of collateral on behalf of the Issuer.


ARLINGTON STREET: Moody's Junks Rating on $37 Mil. Class B Notes
----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the following
class of notes issued by Arlington Street CDO Ltd., a
collateralized debt obligation issuer:

   * The $37,000,000 Class B Fixed Rate Senior Secured Notes Due       
     2012

      -- Prior rating: Caa2, on watch for possible downgrade
      -- Current rating: Caa3

Moody's noted that the rating action is due to several factors,
such as an increasing amount of deferred interest owed to the
Class B notes.  The Class B Overcollateralization Test and the
Class B Interest Coverage Test are also failing, along with the
Weighted Average Moody's Rating Test and the Weighted Average
Coupon Test.  The collateral pool also contains a number of assets
that are rated Caa1 or below.


AURIGA CDO: Moody's Rates $22.5 Mil. Class I Junior Notes at Ba2
----------------------------------------------------------------
Moody's Investors Service assigned these ratings to Notes issued
by Auriga CDO Ltd.:

   * Aaa to the $975,000,000 Class A-1 First Priority Senior
     Secured Floating Rate Notes Due 2047;

   * Aaa to the $97,500,000 Class A-2A Second Priority Senior
     Secured Floating Rate Notes Due 2047;

   * Aaa to the $48,000,000 Class A-2B Third Priority Senior
     Secured Floating Rate Notes Due 2047;

   * Aa2 to the $64,500,000 Class B Fourth Priority Senior Secured
     Floating Rate Notes Due 2047;

   * Aa3 to the $63,000,000 Class C Fifth Priority Senior Secured
     Floating Rate Notes Due 2047;

   * A2 to the $48,000,000 Class D Sixth Priority Mezzanine
     Secured Deferrable Floating Rate Notes Due 2047;

   * A3 to the $42,000,000 Class E Seventh Priority Mezzanine
     Secured Deferrable Floating Rate Notes Due 2047;

   * Baa2 to the $51,000,000 Class F Eighth Priority Mezzanine
     Secured Deferrable Floating Rate Notes Due 2047;

   * Baa3 to the $28,500,000 Class G Ninth Priority Mezzanine
     Secured Deferrable Floating Rate Notes Due 2047;

   * Baa3 to the $43,500,000 Class H Tenth Priority Junior Secured
     Deferrable Floating Rate Notes Due 2047; and

   * Ba2 to the $22,500,000 Class I Eleventh Priority Junior
     Secured Deferrable Floating Rate Notes Due 2047.

The Moody's ratings of the Notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.

250 Capital, LLC will manage the selection, acquisition and
disposition of collateral on behalf of the Issuer.


AVANEX CORP: Incurs $8.6 Million Net Loss in Qtr. Ended Dec. 31
---------------------------------------------------------------
Avanex Corporation reported a net loss of $8.6 million for the
second quarter ended Dec. 31, 2006, compared with a net loss of
$18.5 million for the same period ended Dec. 31, 2005.  

Net revenue in the second quarter of fiscal 2007 was a record
$55.6 million, a 54 percent increase over revenue of $36.1 million
in the second quarter of the previous year.

The increase in net revenue was attributable to an overall
increase in demand for the company's products from existing
customers.

The decrease in net loss was primarily due to the increase in
revenue, a corresponding increase in gross profit, and a decrease
in interest expense, partly offset by an increase in operating
expenses.

"The second quarter was exceptionally strong and we are very
pleased to report the highest revenue and gross margin in the
history of Avanex," said Jo Major, chairman, president and chief
executive officer of Avanex.  "Our team generated solid revenue
growth while significantly improving the financial performance of
the company."

"In the metro and long haul markets we expect flat market demand
in the first half of 2007, due to the delay of certain capacity
expansion projects and we anticipate the market to return to
growth in the second half of the year," said Major.

Gross margin in the second quarter of fiscal 2007 increased to
19%, compared with 8% in the second quarter of fiscal 2006.

Marla Sanchez, senior vice president and chief financial officer
said, "We are pleased with the significant improvement in gross
margin due to the programs we implemented two quarters ago aimed
at reducing inventory charges, improving our supply chain,
increasing manufacturing yields and managing our product
portfolio.  Execution of these programs significantly expanded our
gross margin and we expect to realize further improvements in our
cost structure."

Total operating expenses increased to $19.9 million in the current
quarter, from $15.6 million in the same period last year.  General
and administrative expenses increased $5.2 million primarily
driven by legal, accounting and consulting due diligence fees of
$2.1 million related to a potential acquisition in which Avanex
decided not to proceed further, increased share-based compensation
expenses of $947,000, unanticipated increase in audit fees of
$750,000 related to the year-end audit, unanticipated increase of
$800,000 in consulting fees related to Sarbanes-Oxley compliance
and other year-end financial close activities, and general
increase in employee salaries related to annual salary increases.

Interest and other expense decreased by $5.9 million to $308,000
in the three months ended Dec. 31, 2006, from $6.2 million in the
three months ended Dec. 31, 2005.  These decreases were primarily
due to incurring a $4.5 million loss in connection with
modifications to the company's 8% senior convertible notes in
November 2005, and interest expense on higher principal balances
of borrowings in the three month period ended Dec. 31, 2005.

At Dec. 31, 2006, the company's balance sheet showed
$165.3 million in total assets, $105.9 million in total
liabilities, and $59.4 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the quarter ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cc4

                           About Avanex

Avanex Corporation (NASDAQ: AVNX)-- http://www.avanex.com/-- is a  
leading global provider of Intelligent Photonic Solutions(TM) to
meet the needs of fiber optic communications networks for greater
capacity, longer distance transmissions, improved connectivity,
higher speeds and lower costs. These solutions enable or enhance
optical wavelength multiplexing, dispersion compensation,
switching and routing, transmission, amplification, and include
network-managed subsystems.  Avanex was incorporated in 1997 and
is headquartered in Fremont, Calif.  

                          *     *     *

This concludes the Troubled Company Reporter's coverage of Avanex
Corp. until facts and circumstances, if any, emerge that
demonstrate financial or operational strain or difficulty at a
level sufficient to warrant renewed coverage.


BEAR STEARNS: Fitch Lifts Rating on Class L Certs. to BB- from B+
-----------------------------------------------------------------
Fitch Ratings upgrades Bear Stearns Commercial Mortgage Securities
Inc., series 2003-TOP12:

   -- $30.5 million class B to 'AAA' from 'AA+';
   -- $31.9 million class C to 'AA' from 'A';
   -- $13.1 million class D to 'AA-' from 'A-';
   -- $14.5 million class E to 'A-' from 'BBB+';
   -- $7.3 million class F to 'BBB+' from 'BBB';
   -- $7.3 million class G to 'BBB' from 'BBB-';
   -- $5.8 million class H to 'BBB-' from 'BB+';
   -- $5.8 million class J to 'BB+' from 'BB';
   -- $2.9 million class K to 'BB' from 'BB-'; and
   -- $2.9 million class L to 'BB-' from 'B+'.

In addition, Fitch affirms these classes:

   -- $18.5 million class A-1 at 'AAA';
   -- $150.6 million class A-2 at 'AAA';
   -- $185.9 million class A-3 at 'AAA';
   -- $487.3 million class A-4 at 'AAA';
   -- Interest only class X-1 at 'AAA';
   -- Interest only class X-2 at 'AAA';
   -- $2.9 million class M at 'B'; and
   -- $2.9 million class N at 'B-'.

Fitch does not rate the $11.6 million class O.

The rating upgrades reflect additional paydown and defeasance
since Fitch's last rating action.  As of the March 2007
distribution date, the pool has paid down 15.5% to $981.6 million
from $1.16 billion at issuance.  Eight loans (8.7% of the pool)
have been defeased since issuance, including the third largest
loan (5.2%), which is also credit assessed.

There is currently one specially serviced loan collateralized by a
retail center located in Lithia Springs, Georgia.  The property
has experienced a series of non-monetary defaults due to
unauthorized changes in ownership structure.  The loan is expected
to return to the master servicer.

Fitch reviewed the most recent operating data available from the
master servicer for the nine non-defeased credit assessed loans
(23.5%): West Shore Plaza (6.5%), West Valley Mall (6.3%), Sun
Valley Apartments (2.5%), Cedar Knolls Shopping Center (1.9%), 284
Mott Street (1.9%), Eagle Plaza (1.7%), Carriage Way (1%),
Deerfield Estates (1%), and Wayne Town Center (0.8%).  Based on
their stable performance, the loans maintain their investment
grade credit assessments.

West Valley Mall is collateralized by 621,697 square feet
(sq. ft. ) of a 717,573 sf regional mall in Tracy, California.
Occupancy as of Sept. 30, 2006 has increased to 96% from 95.9% at
issuance.

West Shore Plaza is collateralized by 831,439 sf of a
1.1 million sq. ft. regional mall located in Tampa, Florida.  As
of August 2006 occupancy has increased to 95% from 92.3% at
issuance.

Sun Valley Apartments is a 306-unit multifamily property located
in Florham Park, New Jersey.  Occupancy as of January 2007 is 93%
compared to 95.1% at issuance.


BILLING SERVICES: S&P Retains Negative CreditWatch on Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings,
including its 'B+' corporate credit rating, on Glenview, Illinois-
based Billing Services Group Ltd. remain on CreditWatch with
negative implications, where they were placed on Jan. 23, 2007,
following the company's announcement that it was in early stage
discussions concerning numerous potential strategic options.

It recently was announced that BSG signed a definitive agreement
to sell its wireless clearing and financial settlement business to
Syniverse Technologies Inc. (BB-/Stable/--) for approximately
$290 million.
      
"While the wireless business only accounted for about 24% of BSG's
total revenues during 2006, it was the more profitable of the two
businesses, contributing more than 40% of EBITDA, and also offered
higher growth prospects, given its focus on several underserved
markets and increasing roaming activity abroad," said Standard &
Poor's credit analyst Ben Bubeck.  Still, BSG would be left with a
relatively stable, moderately profitable, and cash generative
business in North America.  Preliminary financing plans for the
remaining business point to leverage at approximately 4x.  Still,
BSG would lose substantial business diversity and its primary
growth driver as a result of the sale of the wireless business.

The transaction remains contingent upon BSG shareholder approval
and regulatory approvals.  Standard & Poor's will monitor the
progress on the closing of this transaction, and will see whether
there are any further planned changes to either BSG's business or
financial profile in order to determine the extent to which, if
any, our ratings would be affected by this divestiture.


BRAINTECH INC: Smythe Ratcliffe Raises Going Concern Doubt
----------------------------------------------------------
Smythe Ratcliffe LLP raised substantial doubt about Braintech
Inc.'s ability to continue as a going concern citing recurring
losses from operations after auditing the company's financial
statements as of Dec. 31, 2006, and 2005.

The company had a net loss of $6 million on sales of $1.8 million
for the year ended Dec. 31, 2006, as compared with a net loss of
$2.7 million on sales of $1.2 million for the year ended Dec. 31,
2005.

Braintech's balance sheet as of Dec. 31, 2006, showed total
stockholders' deficit of $2.1 million, resulting from total assets
of $1.3 million and total liabilities of $3.4 million.  The
company's balance sheet as of Dec. 31, 2006, also showed strained
liquidity with total current assets of $1.3 million available to
pay total current liabilities of $1.4 million.  Accumulated
deficit as of Dec. 31, 2006, stood at $26 million, up from
$20 million as of Dec. 31, 2005.

               Working Capital and Operations

As of Dec. 31, 2006, the company had $16,950 in cash and cash
equivalents and working capital deficiency of $109,027 and as of
Dec. 31, 2005, the company had $522,943 in cash and cash
equivalents and a working capital deficiency of $1.5 million.

As of Dec. 31, 2006, the company's trade accounts receivable
balance was $1.1 million.  Subsequent to December 31, all of this
balance was received in full.  The company's cash position as at
March 22, 2007 is about $650,000.

The company estimated that, at its current level of operation, its
cash expenses are about $200,000 per month.

                      Credits and Debentures

On Oct. 23, 2006, the company completed a transaction redeeming
all of the remaining secured convertible debentures representing
$1.7 million of principal and $393,998 of interest.

As of Oct. 23, 2006, the company had obtained letters of credit
securing a total of $2.2 million of the Bank Loan and accordingly
on Oct. 23, 2006, the company issued 4.3 million common shares,
about 6.5 million warrants exercisable at $0.30 and 3.2 million
warrants exercisable at $0.50.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1c97

                          About Braintech

Braintech Inc. (OTC BB: BRHI) generates majority of its revenues
from the sale of computer software that it developed.  Its
software sales involved computerized vision systems used for the
guidance of industrial robots performing automated assembly,
material handling, and part identification and inspection
functions.


BRIGHAM EXPLORATION: Prices $35 Million Add-On to 9-5/8% Sr. Notes
------------------------------------------------------------------
Brigham Exploration Company has priced a $35 million private
placement add-on to its 9-5/8% senior notes due 2014.  The notes
were priced at 99.50% of their face value to yield 9.721%, and
will be issued pursuant to an indenture dated April 20, 2006.

Certain of Brigham's subsidiaries will fully and unconditionally
guarantee the notes.  Brigham intends to use the net proceeds from
the offering to repay amounts outstanding under its existing
senior credit agreement and for general corporate purposes.  
Brigham does not anticipate expanding its capital expenditure
budget.
    
The notes have not been registered under the Securities Act of
1933, as amended, and may not be offered or sold in the United
States without registration or an applicable exemption from the
registration requirements of the Securities Act.  The company
plans to offer and issue the notes only to qualified institutional
buyers pursuant to Rule 144A under the Securities Act and to
persons outside the United States pursuant to Regulation S.

                    About Brigham Exploration

Headquartered in Austin, Texas, Brigham Exploration Company
(Nasdaq: BEXP) -- http://www.bexp3d.com/-- is an independent  
exploration and production company that applies 3-D seismic
imaging and other advanced technologies to systematically explore
and develop onshore domestic natural gas and oil provinces.

                           *     *     *

Brigham Exploration Company's 9-5/8% Senior Notes due 2014 carry
Moody's Investors Service's 'Caa2' rating and Standard & Poor's
'CCC+' rating.   


BRODER BROS: Weak Operating Results Cue S&P's Negative Outlook
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
printable sportswear distributor Broder Bros Co. to negative from
stable.  At the same time, Standard & Poor's affirmed its 'B'
long-term corporate credit and 'CCC+' unsecured debt ratings on
the company.
     
"The outlook revision reflects the company's weaker-than-expected
operating results and credit protection measures for the fiscal
year ended December 2006," said Standard & Poor's credit analyst
Susan Ding.  Credit measures have deteriorated as a result of
higher debt levels.
     
"The company experienced inventory issues during the fourth
quarter ended December 2006, which resulted in lower revenues and
EBITDA for the quarter," added Ms. Ding.  Operating margins,
meanwhile, remained thin at around 6%, in part due to the
company's business model as a distributorship, as well as
intensely competitive industry conditions.
     
The ratings on Broder Bros Co. reflect the company's highly
leveraged financial profile, weak volume growth, integration risk,
and the highly competitive operating environment.
     
Broder is the leading U.S. distributor of imprintable sportswear
and accessories.


BROWNWOOD HOSPITALITY: Voluntary Chapter 11 Case Summary
--------------------------------------------------------
Debtor: Brownwood Hospitality, Inc.
        515 East Commerce Street
        Brownwood, TX 76801

Bankruptcy Case No.: 07-10120

Chapter 11 Petition Date: April 3, 2007

Court: Northern District of Texas (Abilene)

Debtor's Counsel: Charles Dick Harris, Esq.
                  P.O. Box 3835
                  Abilene, TX 79604
                  Tel: (325) 677-3311
                  Fax: (325) 677-3314

Total Assets: $3,000,000

Total Debts:  $2,817,238

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


CALYPTE BIOMEDICAL: Inks Subscription Pacts with Four Investors
---------------------------------------------------------------
Calypte Biomedical Corporation has entered into Subscription
Agreements with four accredited investors who purchased
$5.2 million of Calypte's common stock in a private placement
transaction.  

Under the terms of the Subscription Agreements, the company issued
100 million shares of its common stock at $0.052 per share and
150 million warrants exercisable over the next 18 months.  The
investors are from Geneva, Switzerland and Dubai, United Arab
Emirates.  The proceeds of the transaction will be used primarily
for general working capital purposes and related investments.
    
Mr. David Khidasheli, chairman and chief technology architect of
Informap Production LLC, leads the investor group.  
    
In conjunction with the closing of this PIPE, Calypte extended the
maturity of its 8% Secured Convertible Notes and its 7% Promissory
Notes issued under the 2005 Credit Facility with Marr Technologies
BV, aggregating $9.2 million, from April 3, 2007 to April 3, 2009.
    
"The company is delighted to welcome such a strong and established
group of strategic investors," Roger Gale, Calypte's chairman and
chief executive officer commented.  "The group was introduced to
the company by Marr, the company's largest stockholder.  Following
this financing, Marr owns over 19% of the company's outstanding
common stock.  Mr. Khidasheli and his co-investors have built an
extensive network of important contacts in many of the company's
target markets, including India, Russia, Thailand, French-speaking
Africa, the Middle East and China.  The company believes these
contacts and resources will complement the company's own.  The
company expects to leverage these relationships with the financial
support provided by this arrangement.  In addition to this initial
$5 million investment; the financing also includes an intermediate
package of warrants that can be a source of up to $13.5 million in
additional funding over the next 18 months.  The company believes
it is poised to take advantage of market opportunities, fulfilling
important humanitarian needs starting with its non-invasive
diagnostic test that serves as a first step in the fight against
HIV/AIDS."
    
"The company believes that the restructuring of its balance sheet,
both the debt and the equity, totally changes the capabilities of
the company," Mr. Gale went on to say.  "With the company's oral
fluid test validated in the scientific community and its
intellectual property position in place to both expand its product
offerings beyond HIV/AIDS and enter the U.S., the company
believes that this heralds a major leap forward and breakthrough
in its ability to realize the potential within Calypte."
   
"I am more confident than ever before of the world's demand for
Calypte's current products and its future products," Marat Safin,
president of the Marr group said.  "In my opinion, the company's
research and development plans will position it as the front
runner and pioneer of technological innovation, using its new test
platform across a wide range of other applications."
    
"I have known David Khidasheli for many years and I am confident
in his ability to launch products, develop markets and raise
awareness," Mr. Safin continued.  "David has the dedication and
qualities necessary to achieve goals that will, in my opinion add
value to the company and help the company build the business.  On
behalf of Calypte's stockholders we welcome the new strategic
investors in the fight against HIV and AIDS."
    
"I have watched Calypte over the past several years after Marr's
investment in the company in 2003," Mr. Khidasheli commented.  
"The company's humanitarian focus interested me from the
beginning.  With the company's Aware(TM) HIV-1/2 rapid oral fluid
(OMT) tests beginning to sell, we believe it is the right time to
bring our combined networks' resources to this business.  I
envision a combination of government and private sector-led
programs involving sales while also taking advantage of local
manufacturing and R&D opportunities.  I expect to be able to
support Calypte's increased visibility and presence in those
countries in which I have worked for many years."

"The company and I have discussed a short-and medium-term plan
including a worldwide focus utilizing the combined contacts and
resources of our organizations wherever possible," Mr. Khidasheli
continued.  "Asia is at the top of this list and is at an ideal
stage for our involvement."

                          About Informap

Informap -- http://www.informap.com/-- employs over 800 people  
worldwide, with offices in Geneva, Dubai, New Delhi, Moscow,
Paris, London, New York, Singapore and Beijing.

                     About Calypte Biomedical

Headquartered in Lake Oswego, Oregon, Calypte Biomedical
Corporation (OTC Bulletin Board: CBMC) -- http://www.calypte.com/
-- manufactures testing solutions for HIV, STDs, and other chronic
diseases.
    
                        Going Concern Doubt

As reported in the Troubled Company Reporter on May 1, 2006,
Odenberg, Ullakko, Muranishi & Co. LLP, expressed substantial
doubt about Calypte Biomedical Corporation's ability to continue
as a going concern after it audited the company's financial
statement for the year ended Dec. 31, 2005.  The auditing firm
points to the company's recurring losses from operations and
negative cash flows.


CELSIA TECHNOLOGIES: Low Revenues, Deficit Cue Going Concern Doubt
------------------------------------------------------------------
PKF, in New York, raised substantial doubt about Celsia
Technologies Inc.'s ability to continue as a going concern after
auditing the company's consolidated financial statements for the
years ended Dec. 31, 2006, and 2005.  The auditing firm reported
that at Dec. 31, 2006, the company and its subsidiaries have
commenced limited revenues producing operations and have an
accumulated deficit of $23.7 million.

The company generated revenues of $104,085 and $19,132 for the
years ended Dec. 31, 2006, and 2005, respectively.  It had net
losses of $6.8 million and $7.2 million for the years ended
Dec. 31, 2006, and 2005, respectively.

As of Dec. 31, 2006, the company listed total assets of
$2 million, total liabilities of $2.3 million, and accrual for
employee retirement benefits of $147,112, resulting to total
stockholders' deficit of $240,448.

The company's balance sheet as of Dec. 31, 2006, also showed
strained liquidity with total current assets of $554,284 available
to pay in total current liabilities of $2.1 million.

                  Liquidity and Capital Resources

The company's main sources of liquidity during 2006 were the about
$10 million in net cash proceeds generated from its 2005 Series A
Preferred Stock offering as well as the $2.8 million in net
proceeds from its Series B offering in 2005.  The cash outflow for
2006 has been slightly below $500,000 per month, which was
consistent with the company's plans and included a pay off of a
short-term loan in May 2006 of $231,683.

The company anticipates using its cash mainly to continue
commercialization efforts and to expand the distribution network
for its technology solutions.  The total cash need for the next
twelve months is estimated to be about $5 million, starting at
Jan. 1, 2007.  The main portion of the cash need is for operating
expenses, cost of sales, and a smaller portion is for investments
in manufacturing and R&D.  The company expects to fund these
activities through cash generated from operations, and through
financing that the company is currently contemplating.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1c9f

                     About Celsia Technologies

Headquartered in Miami, Fla., Celsia Technologies Inc. (OTC BB:
CSAT) -- http://www.celsiatechnologies.com/-- designs, develops,  
researches, manufactures, sells, and markets heat management
products or next generation cooling solutions for the PC, flat
panel display, and LED-lighting industries.  The company's
subsidiaries consist of Celsia Technologies UK Limited, a U.K.
company formerly known as iCurie Lab Holdings Limited, and Celsia
Technologies Korea Inc., a Korean company formerly known as iCurie
Lab Inc.


CENTRAL VERMONT: Earns $18.4 Million in Year Ended December 31
--------------------------------------------------------------
Central Vermont Public Service Corp. reported earnings of
$18.4 million on operating revenues of $325.7 million for the year
ended Dec. 31, 2006.  This compares with earnings of $6.3 million
on operating revenues of $311.4 million in 2005, which included a
$21.8 million pre-tax charge to earnings related to the 2005 Rate
Order.

Operating revenues increased $14.3 million resulting from the sale
of excess power into the wholesale energy market, partially offset
by lower retail sales revenue due to milder weather compared to
2005 and a 2.75 percent rate reduction that began in April 2005.
The excess power resulted primarily from Central Vermont's share
of increased Vermont Yankee plant output including uprate power,
increased deliveries under the long-term contract with Hydro-
Quebec and increased output from independent power producers and
Central Vermont's own hydro facilities.  Additionally, 2005
operating revenues included a first-quarter $6.2 million 2005 Rate
Order-required customer refund.

For the fourth quarter of 2006, Central Vermont reported
consolidated earnings of $6.3 million.  This compares to fourth
quarter 2005 earnings of $6.2 million.

Earnings from continuing operations were $18.1 million in 2006 and
$6 million in the fourth quarter.  This compares to earnings from
continuing operations of $1.4 million in 2005 and $802,000 in the
fourth quarter.

Earnings from discontinued operations are related to Catamount
Energy Corporation which was sold in December 2005.

"We continue to make steady progress toward restoring the
company's financial strength, supported by the Vermont Public
Service Board's approval of our 4.07 percent rate increase, which
became effective Jan. 1, 2007," said Central Vermont president and
chief executive officer Bob Young.

"We believe that our long-term strategy to increase capital
investments will result in improved service and reliability for
customers and will drive earnings growth for our shareholders," he
said.

                         2005 Rate Order

The 2005 Rate Order resulted in a $21.8 million pre-tax charge to
utility earnings in the first quarter of 2005.  The primary
components of the charge included a revised calculation of
overearnings for the period 2001 - 2003, application of the gain
resulting from the termination of the power contract with
Connecticut Valley Electric Company Inc. to reduce costs, a
customer refund for the period April 7, 2004, through
March 31, 2005, and amortization of costs and other adjustments.

            Discontinued Operations - 2006 versus 2005

Earnings from discontinued operations were $251,000 in 2006.   .  
This compares to earnings from discontinued operations of
$4.9 million in 2005.  Earnings from discontinued operations in
2005 included a $5.6 million after-tax gain on the Catamount
Energy Corp. sale.

At Dec. 31, 2006, the company's balance sheet showed
$500.9 million in total assets, $188 million in total liabilities,
and $312.9 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cc2

                      About Central Vermont

Founded in 1929, Central Vermont Public Service Corp. (NYSE: CV)  
-- http://www.cvps.com/-- is Vermont's largest electric utility,  
serving more than 155,000 customers statewide.  Central Vermont's
non-regulated subsidiary, Catamount Resources Corporation, sells
and rents electric water heaters through a subsidiary, SmartEnergy
Water Heating Services.

                          *     *     *

As reported in the Troubled Company reporter on Aug. 4, 2006,
Standard & Poor's Ratings Services affirmed its 'BB+' corporate
credit rating on Central Vermont Public Service Corp.  


CKE RESTAURANTS: Earns $50.2 Million in Fiscal Year Ended Jan. 31
-----------------------------------------------------------------
CKE Restaurants Inc. reported net income of $50.2 million for the
year ended Jan. 31, 2007, compared with net income of
$181.1 million for the year ended Jan. 31, 2006.  This year's
results include income tax expense of $31.9 million while the
prior year's results include a $123.9 million income tax        
benefit primarily related to a reduction of the company's     
previously recorded deferred tax asset valuation allowance.
    
Income before income taxes grew to $82.1 million, a $24.8 million,
or 43.4 percent, increase over the prior year's total of
$57.3 million.  This year's results also included $8.4 million in
share-based compensation expense, which is an $8.2 million
increase over the prior year amount, and $6.4 million of
conversion inducement expense for which there was no comparable
charge in the prior year.  The prior year's results include an
$11 million charge to purchase and cancel the options of the
company former chairman.  Absent these items, fiscal 2007 income
before income taxes would have been $96.8 million in fiscal 2007
compared to $68.4 million in fiscal 2006, a $28.4 million, or 41.5
percent, improvement.  In addition, fiscal 2007's results include
an $8.6 million increase in workers' compensation and general
liability claims expense for Carl's Jr.(R) and Hardee's(R) as a
result of favorable claims expense adjustments in the prior year.

Consolidated revenue for fiscal 2007 increased $70.1 million, or
4.6 percent, to $1,588.4 million, from consolidated revenue for
fiscal 2006 of $1,518.3 million.

For the fiscal year ended Jan. 31, 2007, the company generated
earnings before interest, income taxes, depreciation and
amortization and facility action charges (Adjusted EBITDA) of
$172.8 million representing a $20.3 million or 13.3 percent
increase over the prior fiscal year.  Adjusted EBITDA, as
presented, includes share-based compensation expense as a
reduction to Adjusted EBITDA.  

Commenting on the company's performance, Andrew F. Puzder,
president and chief executive officer, said, "I am pleased to
report our fourth quarter and full year fiscal 2007 results.  Both
Carl's Jr. and Hardee's finished the year with strong same-store
sales momentum and reduced their restaurant operating costs as a
percent of company-operated revenue for the year.  For the full
fiscal year, income before income taxes was $82.1 million,
a $24.8 million or 43.4 percent increase, compared to
$57.3 million in the prior year.  I am particularly pleased with
our nearly $25 million increase in income before income taxes this
year.  We were able to achieve this increase despite an increase
in share-based compensation expense of $8.2 million, an increase
in Carl's Jr. and Hardee's workers' compensation and general
liability claims expense of $8.6 million, and $6.4 million of
conversion inducement expense that we incurred this year.

"Our improved financial condition allowed us to return
approximately $91 million to our shareholders through common stock
repurchases and quarterly cash dividends during the year.  In
addition, we were subsequently able to increase our quarterly cash
dividend payment by 50 percent and to renew our credit facility at
a reduced borrowing rate."

At Jan. 31, 2007, the company's balance sheet showed 794.4 million
in total assets, $415.6 million in total liabilities, and
$378.8 million in total stockholders' equity.

The company's balance sheet at Jan. 31, 2007, also showed strained
liquidity with $152.3 million in total current assets available to
pay $185.1 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the year ended Jan. 31, 2007, are available for
free at http://researcharchives.com/t/s?1cc0

                      About CKE Restaurants

Headquartered in Carpinteria, California, CKE Restaurants Inc.
(NYSE: CKR) -- http://www.ckr.com/-- operates some of the most  
popular U.S. regional brands in quick-service and fast-casual
dining, including the Carl's Jr.(R), Hardee's(R), La Salsa Fresh
Mexican Grill(R) and Green Burrito(R) restaurant brands.  As of
the end of its fiscal fourth quarter on Jan. 29, 2007, the
company, through its subsidiaries, had a total of 3,105 franchised
or company-operated restaurants in 43 states and in 13 countries,
including 1,087 Carl's Jr. restaurants, 1,906 Hardee's restaurants
and 96 La Salsa Fresh Mexican Grill restaurants.

                          *     *     *

As reported in the Troubled Company Reporter on March 29, 2007,
Standard & Poor's Ratings Services affirmed its 'BB-' corporate
credit rating on Carpinteria, California-based CKE Restaurants
Inc.  The outlook is stable.


CONSTRUCTION COMPLIANCE: Case Summary & 20 Largest Creditors
------------------------------------------------------------
Debtor: Construction Compliance, Inc.
        624 28th Avenue North
        Saint Petersburg, FL 33704

Bankruptcy Case No.: 07-02650

Type of Business: The Debtor is a home builder.

Chapter 11 Petition Date: April 3, 2007

Court: Middle District of Florida (Tampa)

Judge: Catherine Peek McEwen

Debtor's Counsel: Thomas C. Little, Esq.
                  2123 Northeast Coachman Road, Suite A
                  Clearwater, FL 33765
                  Tel: (727) 443-5773

Total Assets:  $9,579,458

Total Debts:  $10,961,812

Debtor's 20 Largest Unsecured Creditors:

   Entity                                          Claim Amount
   ------                                          ------------
Florida State Builders, Inc.                         $1,973,886
2538 9th Street North
Saint Petersburg, FL 33704

Jodger Site Work & Trucking                            $920,033
5824 Bee Ridge Road, P.M.B. 162
Sarasota, FL 34233

Beckman Concrete and Masonry                           $800,210
9225 Strasse Boulevard
Punta Gorda, FL 33948

Central Structural Concrete                            $413,512
4333 Brandywine Drive
Sarasota, FL 34241

Miller Brothers Contractors                            $305,751
990 Cattlemen Road
Sarasota, FL 34232

Sunbelt Electric                                       $267,633
1882 Porter Lake Drive, Unit 104
Sarasota, FL 34240

H.D. Supply or Cow Lumber                              $259,705
P.O. Box 20429
Sarasota, FL 34276

R.G.S. Enterprises                                     $247,388

Kimal Lumber Company                                   $241,670

Sherwin Williams                                       $205,631

Coastal Floors, Inc.                                   $196,922

Benchmark Innovations                                  $187,397

Elite Electrical Contractors                           $170,507

N.U. Way Drywall                                       $168,133

Strillka Contracting                                   $165,130

Smith and Sons Insulation                              $152,103

Tarpon Construction                                    $148,684

Residential Drywall, Inc.                              $140,066

Sandlot Plumbing                                       $133,778

Air Tech Heating and Cooling                           $133,699


CREDIT SUISSE: Moody's Junks Rating on $12.6 Mil. Class S Certs.
----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to
securities issued by Credit Suisse Commercial Mortgage Trust
2007-C1.  

The provisional ratings issued on Feb. 26, 2007, have been
replaced with these definitive ratings:

   -- Class A-1, $40,000,000, rated Aaa
   -- Class A-2, $139,000,000, rated Aaa
   -- Class A-AB, $98,301,000, rated Aaa
   -- Class A-3, $758,000,000, rated Aaa
   -- Class A-1-A, $1,324,733,000, rated Aaa
   -- Class A-M, $212,148,000, rated Aaa
   -- Class A-J, $286,576,000, rated Aaa
   -- Class A-SP, $3,158,284,000*, rated Aaa
   -- Class A-X, $3,371,478,040*, rated Aaa
   -- Class B, $25,286,000, rated Aa1
   -- Class C, $37,929,000, rated Aa2
   -- Class D, $33,715,000, rated Aa3
   -- Class E, $21,071,000, rated A1
   -- Class F, $29,501,000, rated A2
   -- Class G, $33,715,000, rated A3
   -- Class H, $37,929,000, rated Baa1
   -- Class J, $33,714,000, rated Baa2
   -- Class K, $37,930,000, rated Baa3
   -- Class L, $8,428,000, rated Ba1
   -- Class M, $12,643,000, rated Ba2
   -- Class N, $8,429,000, rated Ba3
   -- Class O, $8,429,000, rated B1
   -- Class P, $8,428,000, rated B2
   -- Class Q, $8,429,000, rated B3
   -- Class S, $12,643,000, rated Caa2

* Approximate notional amount

Moody's has assigned definitive rating to this additional class of
certificates:

   -- Class A-MFL, $125,000,000, rated Aaa


CREDIT SUISSE: Moody's Rates $31.7 Million Class L Certs. At Ba1
----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to
securities issued by Credit Suisse First Boston Mortgage
Securities Corp. Commercial Mortgage Pass-Through Certificates,
Series 2007-TFL1.  

The provisional ratings issued on March 16, 2007, have been
replaced with these definitive ratings:

   -- Class A-1, $720,000,000, rated Aaa
   -- Class A-2, $239,800,000, rated Aaa
   -- Class A-X-1, $1,110,663,893*, rated Aaa
   -- Class A-X-2, $155,623,443*, rated Aaa
   -- Class B, $40,200,000, rated Aa1
   -- Class C, $38,000,000, rated Aa2
   -- Class D, $25,700,000, rated Aa3
   -- Class E, $25,300,000, rated A1
   -- Class F, $28,500,000, rated A2
   -- Class G, $26,500,000, rated A3
   -- Class H, $27,300,000, rated Baa1
   -- Class J, $26,700,000, rated Baa2
   -- Class K, $36,600,000, rated Baa3
   -- Class L, $31,700,000, rated Ba1

* Approximate notional amount


DEAN FOODS: Moody's Cuts Corporate Family Rating to Ba3 from Ba1
----------------------------------------------------------------
Moody's lowered the Corporate Family Rating of Dean Foods, Inc. to
Ba3 from Ba1 following the payment of a $1.94 billion special
dividend to shareholders, financed using a new $4.8 billion
secured credit facility which was assigned a rating of Ba3.

Moody's also withdrew the rating on the company's previous bank
facility and lowered the ratings for Dean Foods Company and its
subsidiary, Dean Holding Company, for their senior unsecured bonds
to B1 from Ba2.  The rating actions reflect the increased leverage
following the dividend transaction.  The rating outlook is stable.

This rating action concludes the review for possible downgrade
initiated on March 2, 2007.

Ratings lowered:

   * Dean Foods Company

      -- Corporate family rating to Ba3 from Ba1;
      -- Probability of Default Rating to Ba3 from Ba1;
      -- Sr. unsecured to B1, LGD 5, 77% from Ba2, LGD 5, 85%; and
      -- Sr. unsecured shelf to B1, LGD 5, 77% from Ba2.

   * Dean Holding Company

      -- Senior unsecured to B1, LGD 5, 77% from Ba2, LGD 5, 85%.

Ratings affirmed, and LGD ratings assigned:

   * Dean Foods Company

      -- $1.5 billion Revolving Credit Facility at Ba3, LGD 3, 46%
         from Ba3;

      -- $1.5 billion Term Loan A at Ba3, LGD 3, 46% from Ba3; and

      -- $1.8 billion Term Loan B at Ba3, LGD 3, 46% from Ba3.

Rating affirmed:

      -- Speculative Grade Liquidity rating at SGL-2.

Ratings withdrawn:

      -- $1.5 billion Revolving Credit Facility rated Baa3, LGD3,
         37% on review for downgrade; and

      -- $1.5 billion Term Loan A rated Baa3, LGD3, 37% on review
         for downgrade.

The rating change reflects the significant leverage that Dean
Foods took on to fund the $1.94 billion return to shareholders.
Moody's views the dividend as a shift to a more aggressive
financial policy, while at the same time recognizing the company's
ability to de-lever back to current levels in approximately a
three-year time frame.  

Moody's noted that any increase in acquisition activity could slow
the pace of recovery. Leverage approaching 6 times immediately
after the dividend is paid is considered high for a Ba- rated
company.  Credit metrics at the end of 2007 are expected to fall
in the single-B and in the Caa range and will remain predominately
in the single-B range even by the end of 2008, according to
Moody's Packaged Goods Methodology ratings grid.  These weak
ratios are partially offset by a number of stronger qualitative
factors.

Dean Foods' ratings are based on:

   * its national market share and scale in the US dairy industry
     which gives it a favorable cost position,

   * relatively stable earnings and cash flow,

   * diverse customer base supported by a large direct store
     delivery system and

   * good liquidity.

Dean's rating incorporates a business franchise that falls into
the Baa rating category on many measures, offset by the weaker
credit metrics, including high leverage and low margins, and the
company's historical track record of acquisition activity, share
repurchases and comfort with relatively high leverage as evidenced
by this new special dividend.  

Additionally, corporate governance constrains Dean's rating level
given the board's approval of aggressive shareholder return
policies and Moody's concern regarding the heavy presence of
insider directors.

Moody's notes the potential for additional cost savings and
efficiency improvements as the company enters the next stage of
its evolution in streamlining operations to take advantage of its
scale.

The affirmation of the SGL-2 reflects the company's good liquidity
profile resulting from its relatively predictable cash flows and
large committed credit facilities, as well as the fact that the
funding of the special dividend occurred after the closing of the
new $4.8 billion bank facility.

The stable outlook is based on the expectation that Dean Food's
operating performance will be in line with recent years, that the
company will curtail share repurchases following the dividend
payout and that acquisitions would be limited in number and size.

Dean Foods Corporation, based in Dallas, Texas is a leading
processor, producer and distributor of dairy and dairy-related
products in the United States.


DIGITAL RECORDERS: Losses and Deficit Cue Going Concern Doubt
-------------------------------------------------------------
PricewaterhouseCoopers LLP raised substantial doubt about Digital
Recorders Inc.'s ability to continue as a going concern after
auditing the company's financial report at Dec. 31, 2006, and
2005.  The auditing firm pointed to the company's recurring losses
from operations and accumulated deficit.

The company recorded a net loss of $3.9 million on net sales of
$51.3 million for the year ended Dec. 31, 2006, as compared with a
net loss of $5.9 million on net sales of $45.3 million for the
year ended Dec. 31, 2005.

As of Dec. 31, 2006, the company's balance sheet showed total
assets of $37.4 million, total liabilities of $19.9 million, and
minority interests of $234,000, resulting to total stockholders'
equity of $17.2 million.

                            Cash Flows

The company's net working capital as of Dec. 31, 2006, was
$2.5 million, as compared with $4 million as of Dec. 31, 2005.  
Its principal sources of liquidity from current assets included
cash and cash equivalents of $611,000, trade and other receivables
of $10.5 million and inventories of $9.3 million.  Its operating
activities used cash of $3.2 million for the year ended Dec. 31,
2006.  Its investing activities used cash of $458,000 for the year
ended Dec. 31, 2006.  Its financing activities generated net cash
of $3.4 million.

At Feb. 28, 2007, the company had cash and cash equivalents of
$712,000 and a working capital surplus of $1.8 million.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cba

                      About Digital Recorders

Through its business units and wholly owned subsidiaries, Digital
Recorders Inc. (NasdaqCM: TBUS) -- http://www.digrec.com/--  
designs, manufactures, sells, and services information technology
and surveillance technology products either directly or through
contractors.  The company currently operates within two major
business segments, the Transportation Communications Segment and
the Law Enforcement and Surveillance Segment.


DIRECTV HOLDINGS: S&P Lifts Rating on $2 Bil. Facilities to BB+
---------------------------------------------------------------
Standard & Poor's Ratings Services raised the bank loan rating on
$2 billion of credit facilities at DIRECTV Holdings LLC to 'BB+'
from 'BB' and revised the recovery rating to '1' from '3'.
     
S&P also affirmed the 'BB' corporate credit and 'BB-' senior
unsecured debt rating on El Segundo, California-based parent
company The DIRECTV Group Inc.  The outlook is stable.
      
"The change in the bank loan and recovery ratings resulted from
our reassessment of the value available to bank lenders in a
default scenario," said Standard & Poor's credit analyst Naveen
Sarma.  The analysis included not only the minimum EBITDA to cover
interest expense at time of default but also other fixed charges,
including maintenance capital expenditure.  The 'BB+' bank loan
rating on DIRECTV Holdings is one notch above the corporate credit
rating on DIRECTV. The revised recovery rating of '1' indicates
our expectation of full recovery of principal in the event of a
payment default.

The ratings on DIRECTV, a satellite direct-to-home TV provider,
are constrained by the lack of a clearly articulated financial
policy.  Concerns that the company may choose to markedly increase
leverage weigh on the rating despite very modest leverage and a
good market niche.  While leverage is conservative at 1.1x debt to
latest-12-month EBITDA, company officials have publicly stated
that the company could significantly increase leverage, although
management has not indicated any concrete plans to do so.  The
ratings also reflect the intensely competitive U.S. pay-TV
industry and concerns about the company's longer-term competitive
position due to its lack of a competitive triple play package
consisting of high-speed data, voice, and advanced two-way video
services that is available from cable TV companies and, to a
lesser extent, the local telephone companies.
     
Tempering factors include healthy subscriber growth, scale
advantages from the company's position as the second-largest
multichannel TV provider, modest leverage, significant cash, and
growing discretionary cash flow.


DOV PHARMA: PricewaterhouseCoopers Raises Going Concern Doubt
-------------------------------------------------------------
PricewaterhouseCoopers LLP in Florham Park, N.J., expressed
substantial doubt about DOV Pharmaceutical Inc.'s ability to
continue as a going concern after auditing the company's financial
statements for the years ended Dec. 31, 2006, and 2005.  The
auditing firm pointed to the company's recurring losses from
operations and net capital deficiency.

DOV Pharmaceutical Inc. reported net income of $20 million on
revenue of $22.2 million for the fourth quarter of 2006, compared
with a net loss of $16.9 million on revenue of $1.4 million for
the comparable period last year.   For the year ended
Dec. 31, 2006, the company reported a net loss of $38.4 million on
revenue of $25.9 million, compared with a net loss of $53 million
on revenue of $8.6 million for the comparable period last year.  
At Dec. 31, 2006, cash and cash equivalents and marketable
securities totaled $42.3 million compared to $97.6 million at
Dec. 31, 2005.

Revenue in the fourth quarter of 2006 and for the year ended
Dec. 31, 2006, increased $20.8 million and $17.3 million,
respectively, from the comparable periods last year.  In 2006 and
2005, DOV's revenue was comprised primarily of amortization of the
$35 million fee it received on the signing of the license,
research and development agreement with Merck, entered into in
August 2004 and amended in August 2005.  As this license was
terminated in December 2006, all remaining deferred revenue was
recognized in the fourth quarter of 2006.  In addition, in 2005,
the company recorded $2 million in revenue for the achievement of
a milestone under its existing license agreement with Neurocrine
Biosciences Inc.

Operating Expenses include research and development expense and
general and administrative expense.  Operating expenses in the
fourth quarter of 2006 decreased $10.8 million and increased
$248,000 for the year ended Dec. 31, 2006, from the comparable
periods last year.

Research and development expense in the fourth quarter of 2006 and
for the year ended Dec. 31, 2006, decreased $11.2 million and
$11.2 million, respectively, from the comparable periods last
year.  For the full year 2006, the decrease in research and
development expense is primarily associated with decreased
external development costs of $14.8 million for DOV's product
candidates and office and office-related expenses of $476,000,
offset by an increase in payroll and payroll-related expenses of
$3.5 million, rent expense of $409,000 and professional fees of
$154,000.

General and administrative expense for the fourth quarter of 2006
increased $490,000 and for the year ended Dec. 31, 2006, increased
$11.4 million, from the comparable periods last year.  The
increase for the full year 2006 is primarily related to an
increase of $7.5 million in payroll and payroll related expenses,
$2 million in rent related to the Somerset facility, $827,000 in
office and related expenses, $261,000 for professional fees,
$172,000 in market research expenses and $800,000 in broker fees
and expenses in relation to the sale of the company's state
operating losses, offset by a decrease in travel and entertainment
expenses of $179,000.

Interest Expense of $4 million for the year ended Dec. 31, 2006,
includes non-cash amortization of $2.1 million of deferred
issuance costs as well as contractual interest expense of 2.5% on
the company's convertible subordinated debentures.

Net debt conversion and other expense of $5.6 million for the year
ended Dec. 31, 2006, includes a $5.7 million non-cash charge
related to the additional shares issued to induce the exchange of
an aggregate of $10 million in original principal amount of the
company's outstanding convertible debentures for 3,445,000 shares
of its common stock in the third quarter of 2006.

Income Tax Benefit of $5.7 million and $273,000 for the years
ended Dec. 31, 2006, and 2005, respectively, relates to proceeds
from the sale of most of the company's previous years' state net
operating losses as part of the New Jersey Economic Development
Authority technology business tax certificate program.

At Dec. 31, 2006, the company's balance sheet showed $50.4 million
in total assets and $80 million in total liabilities, resulting in
a $29.6 million total stockholders' deficit.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cc5

                     About DOV Pharmaceutical

Based in Somerset, N.J., DOV Pharmaceutical Inc. (Other OTC:
DOVP.PK) -- http://www.dovpharm.com/-- is a biopharmaceutical  
company focused on the discovery, acquisition and development of
novel drug candidates for central nervous system disorders.  The
company's product candidates address some of the largest
pharmaceutical markets in the world including depression, pain and
insomnia.


EDDIE BAUER: BDO Siedman Expresses Going Concern Doubt
------------------------------------------------------
BDO Seidman LLP raised substantial doubt about Eddie Bauer
Holdings Inc.'s ability to continue as a going concern after
auditing the company's financial statements for the years ended
Dec. 31, 2006, and 2005.  The auditing firm pointed to the
company's ability to refinance its term loan to avoid an event of
default related to the failure of the company in meeting its
financial covenants in one or more future interim periods.

The successor company had a net loss of $211.4 million on total
revenues of $1 billion for the year ended Dec. 31, 2006.  For the
six month-period ended Dec. 31, 2005, the successor company had a
net loss of $22.8 million on total revenues of $593.7 million.  
The predecessor company had a net income of $60.9 million on total
revenues of $465.7 million for the six month-period ended July 2,
2005.

The company listed total assets of $855.9 million and total
liabilities of $509.3 million, resulting to total stockholders'
equity of $346.6 million as of Dec. 31, 2006.

                             Cash Flow

Net cash provided by operating activities for fiscal 2006 totaled
$50.4 million, as compared with $37.8 million for fiscal 2005 and
$94.2 million for fiscal 2004.  

Net cash used in investing activities for fiscal 2006 totaled
$45.5 million, as compared with $39.2 million for fiscal 2005.  
Net cash provided by investing activities for fiscal 2004 totaled
$40.7 million.  The company's net cash used in investing
activities for fiscal 2006 primarily included $45.8 million of
capital expenditures related to new store openings and store
remodels and capital expenditures related to its IT systems and
corporate facilities.

Net cash used in financing activities for fiscal 2006 totaled
$26.1 million.  Net cash provided by financing activities for
fiscal 2005 totaled $68.3 million and included $65.7 million of a
net decrease in the receivable due from Spiegel during the six
months ended July 2, 2005 and a net increase in its bank
overdrafts totaling $4.2 million.

                       Sources of Liquidity

As of Dec. 30, 2006, the company had cash balances of
$53.2 million.  The company's primary source of cash is the cash
generated from its operations and borrowings under its revolving
credit facility.  However, its ability to fund capital
requirements will be greatly reduced if it is no longer in
compliance with the covenants under its term loan and cannot amend
or obtain waivers to any covenants the company violates or
refinances the term loan with a new agreement containing less
restrictive covenants.  In addition, if sales and operating cash
flow do not improve from the disappointing levels the company
experienced during the second half of 2005 and the first three
quarters of 2006, it may not have sufficient capital resources to
fund its operating plan.

                        Cash Requirements

The company anticipates that its capital expenditures for 2007
will be about $62 million, of which about 64% relates to opening
and remodeling of stores in accordance with its plans to realign
its stores.  Landlords will fund about $20 million of the capital
expenditures, resulting in net capital expenditures of about
$42 million.

            Predecessor and Successor Entities

On March 17, 2003, Spiegel and the other Debtors, including Eddie
Bauer Inc., the company's principal operating subsidiary, filed
petitions for relief under Chapter 11 of the U.S. Bankruptcy Code
with the U.S. Bankruptcy Court of the Southern District of New
York.  The bankruptcy court confirmed the Plan of Reorganization
on May 25, 2005, it became effective on June 21, 2005, and on that
date the Debtors emerged from bankruptcy.  The company refers to
entities prior to emergence from bankruptcy as the "Predecessor"
and to the emerged entities as the "Successor."

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cb9

                    About Eddie Bauer Holdings

Headquartered in Redmond, Washington, Eddie Bauer Holdings Inc.
(NASDAQ: EBHI) -- http://www.eddiebauer.com/-- sells casual  
sportswear and accessories for the "modern outdoor lifestyle."  
Established in 1920 in Seattle, Eddie Bauer products are available
at around 394 stores throughout the U.S. and Canada, through
catalog sales and online at http://www.eddiebaueroutlet.com/ The  
company also participates in joint venture partnerships in Japan
and Germany and has licensing agreements across a variety of
product categories.  Eddie Bauer employs about 10,000 part-time
and full-time associates in the U.S. and Canada.

                           *     *     *

As reported in the Troubled Company Reporter on March 26, 2007,
Standard & Poor's Rating Services lowered the ratings on Eddie
Bauer Holdings Inc. to 'B-' from 'B'.

At the same time, Standard & Poor's removed the rating from
CreditWatch with negative implications, where it was placed on
Nov. 13, 2006.  The outlook is negative.


EXCO RESOURCES: Closes $1.5 Billion Vernon & Ansley Acquisition
---------------------------------------------------------------
EXCO Resources, Inc. has closed the acquisition of oil and natural
gas properties, acreage and other assets in the Vernon and Ansley
fields in North Louisiana from Anadarko Petroleum Corporation and
Anadarko Gathering Company for $1.5 billion in cash, after
contractual adjustments and subject to certain post-closing
adjustments.  These properties were acquired by subsidiaries of
EXCO Partners, LP.
    
Concurrent with this acquisition, EXCO also closed a
private placement of $2 billion of its Preferred Stock, consisting
of $390 million of 7%, cumulative convertible perpetual preferred
stock, convertible into EXCO common stock at $19 per share and
$1.61 billion of hybrid preferred stock bearing an initial
dividend rate of 11% and initially not convertible into EXCO
common stock.  In accordance with New York Stock Exchange
requirements for shareholder approval of certain stock issuances,
EXCO intends to call a meeting of its shareholders to approve
the hybrid preferred stock having terms identical to the
7% convertible preferred.
    
The $2 billion in cash proceeds from the preferred stock issuance
were used to make a $1.67 billion contribution to EXCO Partners to
close the Vernon/Ansley property acquisition, to repay
$262.5 million of indebtedness at EXCO Partners, and when combined
with surplus cash to reduce EXCO's outstanding revolver by
$352 million and to pay offering expenses.
    
As part of these transactions, EXCO Partners' wholly-owned
subsidiary, EXCO Partners Operating Partnership, LP, also entered
into an amended and restated credit agreement with its banking
group led by JPMorgan Chase Bank.  The EPOP Credit Agreement
provides for an initial revolving borrowing base of $1.3 billion,
of which $1.1 billion was drawn at closing.  The initial interest
rate is LIBOR plus 150 bps with a maximum rate of LIBOR plus 175
bps.
    
The contribution by EXCO to EXCO Partners plus the $1.1 billion of
initial borrowing under the EPOP credit agreement were used to
close the Vernon/Ansley acquisition, to repay EPOP's borrowings of
$673.5 million under its existing revolver and $650 million under
its second lien Senior Term Notes, plus a prepayment premium of
$13 million, and to pay certain transaction expenses.
    
EXCO intends to amend and restate its existing credit agreement to
finance its pending acquisition from Anadarko of oil and natural
gas properties and related assets in multiple fields located in
the Mid- Continent, South Texas and Gulf Coast areas of Oklahoma
and Texas and has agreed in principal with its banking group led
by JPMorgan to the terms thereof.  Subject to the satisfaction of
various closing conditions, EXCO expects the acquisition and
refinancing to close on or about May 2, 2007.
    
In connection with the private placement, EXCO disclosed that
Vincent Cebula of Oaktree Capital Management, LLC and Jeffrey
Serota of Ares Management LLC have become directors of EXCO.
Oaktree and Ares are significant investors in EXCO's common stock
and the new preferred stock.
    
"The company is pleased with the preferred stock offering
completed and look forward to obtaining shareholders' approval of
the restatement of 11% preferred into the 7% convertible
preferred," Douglas H. Miller, EXCO's Chairman, stated.  "All of
the senior management and I intend to vote our shares for the
approval and are committed to obtaining the approval.  Also, we
are pleased to welcome Vince Cebula and Jeff Serota to the
board.  We have known and worked with Vince and Jeff for many
years and look forward to their insight and value they will add to
the company's organization."

                       About EXCO Resources

Headquartered in Dallas, Texas, EXCO Resources, Inc. (NYSE: XCO)
-- http://www.excoresources.com/-- is an oil and natural gas    
acquisition, exploitation, development and production company,
with principal operations in Texas, Louisiana, Ohio, Oklahoma,
Pennsylvania and West Virginia.

                          *     *     *

Moody's Investors Service's assigned 'B2' on EXCO Resources,
Inc.'s long-tern corporate family rating and probability of
default rating.

Standard and Poor's assigned a 'B' rating on its long-term foreign
and local issuer credit rating.


FAIRPOINT COMM: 2006 Fourth Quarter Earnings Lowers to $3.8 Mil.
-----------------------------------------------------------------
FairPoint Communications, Inc. reported its financial results for
the fourth quarter ended Dec. 31, 2006.
   
Net income decreased $3.8 million compared to the fourth quarter
of 2005.  This decrease was driven by an increase in expenses and
a decrease in interstate access revenue.  Earnings per share on a
fully diluted basis were $0.12 for the three months ended
Dec. 31, 2006, compared to earnings per share on a fully diluted
basis of $0.23 for the same period in 2005.
        
The company's credit facility contains a covenant that limits its
ability to pay cash dividends on its common stock to the amount of
Cumulative Cash Available for Dividends that accumulates from
April 1, 2005 through the end of the company's most recent fiscal
quarter for which financial statements are available and a
compliance certificate has been delivered.  Under this covenant,
as of Dec. 31, 2006, the company had Cumulative Cash Available for
Dividends of $41 million, from which it paid a dividend on
Jan. 18, 2007 of $13.9 million, resulting in a carryover of
$27.1 million of Cumulative Cash Available for Dividends.  

In addition to this $27.1 million carryover, based on the
company's financial performance through Dec. 31, 2006, the company
generated an additional $18.2 million of Cash Available for
Dividends and as a result expects to have $45.2 million of
Cumulative Cash Available for Dividends from which to declare and
pay its next dividend.  Cash Available for Dividends corresponds
to the term Available Cash in the company's credit facility and
Cumulative Cash Available for Dividends corresponds to the term
cumulative distributable cash in the Company's credit facility.
   
On Jan. 16, 2007, the company signed a definitive agreements with
Verizon Communications Inc. that will result in Verizon
establishing a separate entity for its local exchange and related
business assets in Maine, New Hampshire and Vermont, spinning off
the capital stock of that new entity to Verizon's stockholders,
and merging it with and into FairPoint.  The merger is expected to
close within the next 12 months.  

At Dec. 31, 2006, the company's balance sheet showed total assets
of $885.2 million, total liabilities of $660.5 million and total
stockholders' equity of  $224.7 million.

                  About FairPoint Communications

FairPoint Communications, Inc. (NYSE: FRP) --
http://www.fairpoint.com/-- provides communications services to   
rural communities across the country.  FairPoint acquires and
operates telecommunications companies for the delivery of service
to rural communities.  The company owns and operates 31 local
exchange companies located in 18 states offering an array of
services, including local and long distance voice, data, Internet
and broadband offerings.

                         *     *     *

FairPoint Communications Inc.'s long-term corporate family and
probability of default carry Moody's Investors Service's 'B1'
rating.  The outlook is stable.

Standard and Poor's assigned 'BB-' on its long-term foreign and
local issuer credit rating.


FIRST HORIZON: Fitch Puts Low-B Ratings on Class B-4 & B-5 Certs.
-----------------------------------------------------------------
Fitch rates First Horizon Alternative Mortgage Securities Trust
mortgage pass-through certificates, series 2007-FA2:

   -- $311.86 million classes I-A-1 through I-A-12, I-A-PO, I-A-R,
      II-A-1, and II-A-PO certificates (senior certificates)
      'AAA';

   -- $8.75 million class B-1 'AA';
   
   -- $3.30 million class B-2 'A';
   
   -- $2.31 million class B-3 'BBB';
   
   -- $1.49 million privately offered class B-4 'BB'; and
   
   -- $1.16 million privately offered class B-5 'B'.

The 'AAA' rating on the senior certificates reflects the 5.50%
subordination provided by the 2.65% class B-1, 1.00% class B-2,
0.70% class B-3, 0.45% privately offered class B-4, 0.35%
privately offered class B-5, and 0.35% privately offered 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, strength
of the legal and financial structures, and the servicing
capabilities of First Horizon Home Loan Corporation, currently
rated 'RPS2' by Fitch Ratings.

Substantially all of the mortgage loans were underwritten to First
Horizon's 'Super Expanded Underwriting Guidelines'.  These
guidelines are less stringent than First Horizon's general
underwriting guidelines and could include limited documentation,
higher loan-to-value ratios and lower FICO scores.  Mortgage loans
underwritten to the Super Expanded Underwriting Guidelines could
experience higher rates of default and losses than loans
underwritten using First Horizon's general underwriting
guidelines.

The certificates represent ownership interests in a trust fund
that consists of three cross-collateralized pools of mortgages.
The senior certificates whose class designation begins with I and
II correspond to pools I and II, respectively.  Each of the senior
certificates generally receives distributions based on principal
and interest collected from mortgage loans in its corresponding
mortgage pool.

If on any distribution date a pool is under-collateralized and
borrower payments from the underlying loans are insufficient to
pay senior certificate principal and interest, borrower payments
from the other pools that would have been distributed to the
subordinate certificates will instead be distributed as principal
and interest to the under-collateralized group's senior
certificates.  The subordinate certificates will only receive
principal or interest distributions after all the senior
certificates receive all their required principal and interest
distributions.

As of the March 1, 2007, cut-off date, the aggregate pool consists
of conventional, fully amortizing, fixed-rate mortgage loans
secured by first liens on single-family residential properties,
substantially all of which have original terms to maturity of
30 years.  Approximately 44.65% of the mortgage loans in the
aggregate pool have interest-only payments scheduled for a period
of 10 years following the origination date of the mortgage loan.

Thereafter, monthly payments will be increased to include
principal and interest payments to sufficiently amortize the loan
over the remaining term.  The aggregate principal balance of the
pool is $330,008,514 and the average principal balance is
approximately $259,237.  The mortgage pool has a weighted average
original loan-to-value ratio (OLTV) of 71.21% and the weighted
average FICO is 719.  Rate/Term and cash-out refinance loans
account for 15.37% and 37.80% of the pool, respectively.  Second
homes represent 5.91% of the pool, and investor occupancies
represent 23.20% of the pool.  The states with the largest
concentrations are California (19.08%), Washington (6.42%), Utah
(6.41%), Arizona (6.57%), and Maryland (5.87%).  All other states
represent less than 5% of the aggregate pool as of the cut-off
date.

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

The trust, First Horizon Alternative Mortgage Securities Trust
2007-FA2, was created for the sole purpose of issuing the
certificates.


FIRST HORIZON: Fitch Puts Low-B Ratings on 2 Certificate Classes
----------------------------------------------------------------
Fitch rates First Horizon Alternative Mortgage Securities Trust
mortgage pass-through certificates, series 2007-AA1:

   -- $329.1 million classes I-A-1 through I-A-4, I-A-R, II-A-1
      and II-A-2 certificates (senior certificates) 'AAA';

   -- $11.41 million class B-1 certificates 'AA';

   -- $3.51 million class B-2 certificates 'A';

   -- $2.63 million class B-3 certificates 'BBB';

   -- $1.76 million privately offered class B-4 certificates 'BB';

   -- $1.40 million privately offered class B-5 certificates 'B'.

The 'AAA' rating on the senior certificates reflects the 6.25%
subordination provided by the 3.25% class B-1, the 1.00% class
B-2, the 0.75% class B-3, the 0.50% privately offered class B-4,
the 0.40% privately offered class B-5, and the 0.35% privately
offered 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, strength
of the legal and financial structures, and the servicing
capabilities of First Horizon Home Loan Corporation, currently
rated 'RPS2' by Fitch.

Substantially all of the mortgage loans were underwritten to First
Horizon's 'Super Expanded Underwriting Guidelines'.  These
guidelines are less stringent than First Horizon's general
underwriting guidelines and could include limited documentation,
higher loan-to-value ratios and lower FICO scores.  Mortgage loans
underwritten to the 'Super Expanded Underwriting Guidelines' could
experience higher rates of default and losses than loans
underwritten using First Horizon's general underwriting
guidelines.

The certificates represent ownership interests in a trust fund
that consists of two cross-collateralized pools of mortgages.  The
senior certificates whose class designation begins with I, and II
correspond to Pools I, and II, respectively.  Each of the senior
certificates generally receives distributions based on principal
and interest collected from mortgage loans in its corresponding
mortgage pool.  If on any distribution date a pool is
under-collateralized and borrower payments from the underlying
loans are insufficient to pay senior certificate principal and
interest, borrower payments from the other pools that would have
been distributed to the subordinate certificates will instead be
distributed as principal and interest to the under-collateralized
group's senior certificates.  The subordinate certificates will
only receive principal or interest distributions after all the
senior certificates receive all their required principal and
interest distributions.

As of the March 1, 2007, cut-off date, the aggregate pool consists
of conventional, fully amortizing, fixed-rate mortgage loans
secured by first liens on single-family residential properties,
substantially all of which have original terms to maturity of
30 years.  Approximately 85.08% of the mortgage loans in the
aggregate pool have interest only payments scheduled for a period
of five or 10 years following the origination date of the mortgage
loan.  Thereafter, monthly payments will be increased to include
principal and interest payments to sufficiently amortize the loan
over the remaining term.  The principal balance of the aggregate
pool is $351,048,250 and the average principal balance is
approximately $304,994.  The mortgage pool has a weighted average
original loan-to-value ratio (OLTV) of 73.55% and the weighted
average FICO is 721.  Rate/Term and cash-out refinance loans
account for 14.87% and 23.84% of the pool, respectively.  Second
homes represent 9.04% of the pool, and investor occupancies
represent 27.15% of the pool.  The states with the largest
concentrations are California (23.85%), Arizona (10.55%), and
Nevada (7.74%).  All other states represent less than 5% of the
pool as of the cut-off date.

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

The trust, First Horizon Alternative Mortgage Securities Trust
2007-AA1, was created for the sole purpose of issuing the
certificates.


FIRST HORIZON: Fitch Puts Low-B Ratings on Class B-4 & B-5 Certs.
-----------------------------------------------------------------
Fitch rates First Horizon Asset Securities Inc.'s mortgage pass-
through certificates, series 2007-2:

   -- $202.7 million classes I-A-1 through I-A-7, I-A-PO, I-A-R
      and II-A-1 senior certificates 'AAA';

   -- $4.62 million class B-1 'AA';

   -- $1.05 million class B-2 'A';

   -- $630,000 class B-3 'BBB';

   -- $420,000 class B-4 'BB'; and

   -- $315,000 class B-5 'B'.

The class B-6 certificate is not rated by Fitch.

The 'AAA' rating on the senior certificates reflects the 3.50%
subordination provided by the 2.20% class B-1, 0.50% class B-2,
0.30% class B-3, 0.20% privately offered class B-4, 0.15%
privately offered class B-5 and 0.15% privately offered class B-6
certificates.  The ratings on the class B-1, B-2, B-3, B-4, and
B-5 certificates are based on their respective subordination.

Fitch believes the above credit enhancement will be adequate to
support mortgagor defaults as well as bankruptcy, fraud, and
special hazard losses in limited amounts.  

In addition, the ratings reflect the quality of the mortgage
collateral, strength of the legal and financial structures, and
the servicing capabilities of First Horizon Home Loan Corporation.

The certificates represent ownership interests in a trust fund
that consists of three cross-collateralized pools of mortgages.
The senior certificates whose class designation begins with I, and
II correspond to Pools I, and II, respectively.  Each of the
senior certificates generally receives distributions based on
principal and interest collected from mortgage loans in its
corresponding mortgage pool.  If on any distribution date a pool
is under-collateralized and borrower payments from the underlying
loans are insufficient to pay senior certificate principal and
interest, borrower payments from the other pools that would have
been distributed to the subordinate certificates will instead be
distributed as principal and interest to the under-collateralized
group's senior certificates.  The subordinate certificates will
only receive principal or interest distributions after all the
senior certificates receive all their required principal and
interest distributions.

As of the March 1, 2007, cut-off date, the aggregate Pool consists
of conventional, fully amortizing, fixed-rate mortgage loans
secured by first liens on single-family residential properties,
substantially all of which have original terms to maturity of
30 years.  Approximately 33.94% of the mortgage loans in the
aggregate pool have interest only payments scheduled for a period
of ten years following the origination date of the mortgage loan.
Thereafter, monthly payments will be increased to include
principal and interest payments to sufficiently amortize the loan
over the remaining term.  The aggregate principal balance of the
pool is $210,027,734 and the average principal balance is
approximately $644,257.  The mortgage pool has a weighted average
original loan-to-value ratio (OLTV) of 71.08% and the weighted
average FICO is 750.  Rate/Term and cash-out refinance loans
account for 27.29% and 26.34% of the pool, respectively.  Second
homes represent 8.07% of the pool, and investor occupancies
represent 0.44% of the pool.  The states with the largest
concentrations are California (22.2%), Washington (13.37%),
Virginia (7.28%), Arizona (7.04%), and Maryland (6.19%).  All
other states represent less than 5% of the aggregate pool as of
the cut-off date.

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

All of the mortgage loans were originated or acquired in
accordance with First Horizon Home Loan Corporation's underwriting
guidelines.  The trust, First Horizon Mortgage Pass-Through Trust
2007-2, was created for the sole purpose of issuing the
certificates.


FONTAINEBLEAU HOLDINGS: Moody's Places Corp. Family Rating at B2
----------------------------------------------------------------
Moody's Investors Service assigned these ratings to Fontainebleau
Las Vegas Holdings, LLC and its direct wholly owned subsidiary,
Fontainebleau Las Vegas, LLC:

Fontainebleau Las Vegas Holdings, LLC:

   -- Corporate Family rating at B2;
   -- Probability of Default rating at B2; and
   -- Loss Given Default rating at LGD 4, 50%.

Fontainebleau Las Vegas LLC:

   -- $1,000 million 5 year secured and guaranteed revolving
      credit facility, B1, LGD 3, 36%;

   -- $850 million 7 year secured and guaranteed delayed draw term
      loan, B1, LGD 3, 36%; and

   -- Stable ratings outlook.

The ratings are subject to a minimum cash contribution of
$430 million from FLVH's ultimate parent, Fontainebleau Resorts,
LLC (Parent), issuance of $675 million junior capital, guarantees
from the Parent, FLVH, and Fontainebleau Resort Properties I, LLC
(an intermediate holding company), and a completion guarantee from
Turnberry Residential Limited Partner, L.P.  The ratings are also
subject to receipt and review of final terms and documentation.

The cash contribution, together with approximately $44 million of
additional cash equity spent by the Parent as of the financing
date, $850 million of secured delayed draw term loan, $675 million
of second mortgage notes and drawings from the $1,000 million
secured revolving credit facility will be used to construct the
Fontainebleau Las Vegas resort on the north end of the Las Vegas
Strip.  The project budget totals $2.5 billion, including the
retail component that is being financed separately.  The Parent is
owned by entities controlled by Jeffery Soffer, management and
third party investors.  Mr. Soffer is a principal in Turnberry, a
large successful real estate development and property management
company.  

In order to make the required $430 million cash equity
contribution to FLVH, the Parent is raising approximately
$765 million through a series of transactions including a
$375 million common equity raise, a $185 million PIK preferred
security and $205 million of proceeds from the retail component
that is being financed by an affiliated entity.  The Parent will
contribute this $430 million to FLVH as equity with the remaining
proceeds being used to repay existing indebtedness and fund
corporate overhead and pre-development expenses during the
construction period of the project.

Pursuant to Moody's Global Gaming Methodology the ratings are
supported by the project's size, location in a low regulatory risk
jurisdiction and successful development history of the principal
sponsor that are offset by above average leverage, low interest
coverage and construction risk.

The B2 CFR rating reflects significant construction and ramp-up
risk, single asset and market concentration risk, reliance on the
sale of condo-hotel units to reduce debt to a manageable level
post construction, and a modest cash equity base equal to 20% of
the project budget, excluding the cost of the retail component and
prior to any condo-hotel sales.

Additional risks include, shared construction costs with the
retail component, growing supply of luxury resorts on the Las
Vegas Strip, the parent company's simultaneous pursuit of a
development in Miami, and the project's location in an evolving
area of the Las Vegas strip.  Assuming condo-hotel units are sold
over a 35 month period ending in the third quarter of 2010 at
around $1,300 per square foot and the resort achieves its first
year target return level, Moody's estimates debt/EBITDA of 6.0x
and 4.7x in 2010 and 2011, respectively.  These levels are
reflective of a B2 rating in 2010 and a low Ba3 rating in 2011
pursuant to Moody's Global Gaming Methodology.  Moody's estimates
EBITDA/interest of 1.8x and 2.4x in 2010 and 2011, respectively.
These levels are reflective of a B3 rating in 2010 and a B2 rating
in 2011 pursuant to Moody's Global Gaming Methodology.

The ratings consider the Turnberry's significant construction and
development experience -- including condominium and condo-hotel
projects on the Las Vegas strip, successful track record of the
management team, solid liquidity, as well as the reasonability of
management's projections that take into account the time necessary
for a project of this scale to grow into its sustainable margin
profile.  Project liquidity includes; a $117 million budget
contingency reserve, a $100 million completion guaranty from TR -
a credit worthy affiliate of the project Sponsor - supported by a
$50 million letter of credit, a funded $50 million liquidity
reserve, and estimated revolver availability of about $100 million
at opening.

Additionally, the ratings are supported by Las Vegas' low risk
regulatory designation, the city's position as a primary
destination resort and its growth as one of the largest
entertainment markets and most popular trade show destinations in
the U.S.

The rating of the bank facilities reflects the application of
Moody's Loss Given Default Methodology.  Key structural
protections in the documentation include a requirement that no
less than 95% of hard costs be committed prior to the initial
advance under the bank facilities, use of equity and second
mortgage note proceeds first, a requirement that the project
budget remain in-balance as advances are made, and a requirement
that significant scope changes, if any, be funded from realized
project savings and/or new equity.

Additionally, covenants from the completion guarantor to limit
distributions and maintain a certain level of net worth are
expected to be in place, mandatory prepayments from the sale of
condo-hotel units, a tight restricted payments provision and small
baskets for additional liens, debts, and investments provide
adequate protection to lenders.

The stable ratings outlook anticipates that the project will be up
and running by the expected completion date, the condo-hotel units
will be sold as projected, and the resort will generate a
sufficient return to meet debt service requirements.  The critical
inflection points for the credit are project completion on time,
on budget and the sale and closing of the condo-hotel units by
year-end 2010 to reduce peak funded debt to a serviceable level.

Ratings could be lowered if the project runs into material
construction delays, cost overruns not covered by the budget
contingency, if the condo-hotel units sell more slowly or at lower
price points, or the project does not ramp up as expected.  Unless
the project exceeds its projected returns, upward rating momentum
is not likely until a year or more after opening.

Fontainebleau will feature a 3,889 room hotel of which 1,018 will
be luxury condominium-hotel units, a 100,000 square foot casino,
280,000 square feet of convention and meeting space, a spa, 3,200
seat theatre, 291,000 square feet of retail space and numerous
restaurants and bars.  The projects is expected to completed in
the third quarter of 2009.  The project is located on 24.4 acres
at the corner of Las Vegas and Riviera Boulevards between the
Sahara and Riviera and across the street from Circus Circus.


GIBRALTAR LIMITED: Moody's to Withdraw Ratings on 5 Note Classes
----------------------------------------------------------------
Moody's Investors Service has withdrawn the ratings on the notes
issued by Gibraltar Limited CBO:

   * $272,000,000 Class A Floating Rate Notes due 2011

      -- Prior Rating: Aaa
      -- Current Rating: WR

   * $17,500,000 Class B Floating Rate Notes due 2011

      -- Prior Rating: A3
      -- Current Rating: WR

   * $22,500,000 Class B Fixed Rate Notes due 2011

      -- Prior Rating: A3
      -- Current Rating: WR

   * $24,000,000 Class C Fixed Rate Notes due 2011

      -- Prior Rating: Ba2
      -- Current Rating: WR

   * $24,000,000 Class D Fixed Rate Notes due 2011

      -- Prior Rating: Caa1
      -- Current Rating: WR

According to Moody's, the ratings were withdrawn because the notes
were redeemed in full on Feb. 26, 2007.


GLEN DEVELOPMENT: General Unsecured Creditors May Get Full Payment
------------------------------------------------------------------
Glen Development Group LLC delivered a disclosure statement
describing its Chapter 11 Plan of Reorganization to the U.S.
Bankruptcy Court for the Western District of Washington at
Seattle.

                        Treatment of Claims

Under the Plan, the Class 1 Secured Claim of King County for real
property taxes will be paid in full on the effective date of the
Plan.

Marlow on Ravenna-SEA LLC's Class 2 Secured Claim will receive
payment in full on the effective date of the Plan.  Additionally,
attorney fees incurred by Marlow in enforcing its secured claim
that the Court determines are reasonable will be paid from the net
proceeds from refinancing of the Debtor's real property after
payment of all normal and usual refinancing costs.

The Debtor's real property, located at 9090 Ravenna Avenue in
Seattle, Washington, consists of a newly constructed six-unit
condominium building.

The Class 3 Secured Claim of TRA Industries Inc. will be paid
$24,500 from the Refinancing Proceeds.

Allowed General Unsecured Claims will be paid up to the full
amount of their claim from the net proceeds from the sale of the
real property after payment of all sale costs, including
commissions, pro-rated taxes, title and escrow fees and other
ordinary sales costs.

Holders of Class 5 General Unsecured Insider Claims will be paid
up to the full amount of their claim soon as practicable from the
Sale Proceeds depending on the amount available.

Holders of Equity Security Interests in the Debtor will be
entitled to any Sale Proceeds remaining after payment in full of
claims in previous classes.

                           Plan Funding

The Debtor has secured a commitment for refinancing in the amount
of $1.274 million from Hard Money Placement LLC, payable in one
year at $11,416 per month, with a 10.25% interest rate.

The commitment is based on the $1.820 million appraisal of the
real property.  The commitment is contingent upon the issuance of
a certificate of occupancy.

The Debtor also proposes to fund distribution under the Plan
through sale or refinancing of its real property.

                    Disclosure Statement Hearing

The Court will convene a hearing to consider the adequacy of the
Debtor's disclosure statement on April 13, 2007, at 11:00 a.m.

Objections, if any, to the disclosure statement are due on
April 6, 2007.

Headquartered in Seattle, Washington, Glen Development Group LLC
filed for Chapter 11 protection on November 22, 2006 (Bankr. W.D.
Wash. Case No. 06-14178).  Michael M. Feinberg, Esq. of Karr
Tuttle Campbell PS represents the Debtor in its restructuring
efforts.  No Official Committee of Unsecured Creditors has been
appointed in this case.  In its schedules, the Debtor listed total
assets of $1,500,000 and total debts of $1,389,723.


GRAMERCY COURT: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Gramercy Court, Ltd.
        7500 Bellaire Boulevard, Suite 201
        Houston, TX 77036-5021

Bankruptcy Case No.: 07-80177

Debtor-affiliate filing separate chapter 11 petition:

      Entity                            Case No.
      ------                            --------
      2600 Park Living, Ltd.            07-80178

Chapter 11 Petition Date: April 3, 2007

Court: Southern District of Texas (Galveston)

Judge: Letitia Z. Clark

Debtors' Counsel: Chasless L. Yancy, Esq.
                  David A. Zdunkewicz, Esq.
                  Andrews Kurth LLP
                  600 Travis Suite 4200
                  Houston, TX 77002
                  Tel: (713) 220-4200
                  Fax: (713) 220-4285

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

A. Gramercy Court, Ltd. does not have any creditors who are not
   insiders.

B. 2600 Park Living, Ltd.'s 17 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Hughes MRO                       Goods Provided          $1,877
P.O. Box 842434
Dallas, TX 75284

TFI Services/Hire Property       Goods Provided          $1,155
1800 St. James Place, Suite 110
Houston, TX 77056-4109

Apartment Data Services, Inc.    Advertising             $1,040
1500 South Dairy Ashford         Services
Suite 175
Houston, TX 77077-3860

Class Cuts Inc.                  Services Rendered         $785

Mac Mechanical Inc.                                        $767

Wilmar Industries                Goods Provided            $619

Appliance Rental, Inc.           Rental Fee                $487

The Home Depot Supply            Goods Provided            $449

David Stephens                                             $350

Apartments.com                   Advertising               $345

AlarmTechs, Inc.                 Services Rendered         $308

D&C Painting                     Office Supplies           $189

Ozarka Natural Spring Water      Water Delivery            $129

Hagee's Bay Area Ans. Service    Services Rendered         $106

Affinity Carpet Cleaning, Inc.   Services Rendered          $65

Grace Hill, Inc.                 Training Subscription      $43

Brilliant Promotional Products   Goods Supplied             $16


HERBALIFE LTD: Whitney Bid Rejection Cues S&P to Retain Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB+' corporate
credit rating on Los Angeles-based Herbalife Ltd. remains on
CreditWatch with negative implications following the company's
announcement that the company's board of directors has rejected a
bid to be acquired by Whitney V L.P.  The board indicated that
although it views Whitney's bid as too low, it would consider an
improved offer.  

The company is currently carrying minimal debt leverage, but
existing debt capacity would be stretched well beyond the limits
of the current ratings if a predominantly debt-funded acquisition
of the company were to transpire.  Ratings on the company will
remain on CreditWatch until greater clarity around a potential LBO
emerges.


HEXCEL CORP: Good Performance Cues Moody's to Upgrade Ratings
-------------------------------------------------------------
Moody's Investors Service has raised the ratings of Hexcel
Corporation, Corporate Family Rating to Ba3 from B1.  The ratings
on Hexcel's senior secured credit facility have been upgraded to
Ba1 from Ba2, while the subordinated notes ratings were upgraded
to B1 from B3.  The ratings outlook is Stable.

The ratings reflect Hexcel's strengthening credit profile,
including substantial interest coverage and modest leverage,
resulting from dramatically improved operating performance during
the recent recovery in the commercial aircraft OEM supplier
sector.  The ratings are further supported by Hexcel's strong
competitive position in what is expected to be a continuing robust
aircraft OEM supplier environment.  The expectation for sustained
credit metrics at levels at or above those typical for the Ba3
rating outweighs risk associated with a concentration of revenue
on two customers in the commercial aircraft OEM sector, negative
free cash flow generation due to heavy current levels of
expenditures on production capacity, and moderating but continued
uncertainties surrounding the production and delivery schedule of
a major new aircraft platform -- the Airbus A380.  

Moody's also expects that proceeds from the sale of certain
reinforcement product lines will generally be applied to debt
reduction.

The stable rating outlook reflects Moody's expectations for stable
near-term operating margins and modest revenue growth.  The stable
outlook also assumes that any near-term developments relating to
the production and delivery schedule of the A380 will have no
material negative impact on the company's margins, working capital
requirements, nor will it materially set back Hexcel's growth
projections through 2008.

Ratings or their outlook could be subject to upward revision if
the company were to demonstrate sustained free cash flow
generation of at least 5% of debt while maintaining or improving
operating margins.  Reduction of leverage to less than 3.0x
Debt/EBITDA due to better than expected near term operating
results or debt repayment through proceeds from business
divestitures could also positively affect ratings.  

Conversely, ratings or their outlook could be lowered if operating
results were to face unexpected deterioration possibly as the
result of further problems regarding the A380 or higher than
expected restructuring costs such that leverage were to increase
above 4.5x Debt/EBITDA and interest coverage were to fall below
2.0 times.  Substantial increases in debt, including through more
permanent revolving credit facility drawings, which would cause a
deterioration of liquidity, could also negatively affect ratings.

Upgraded:

   * Senior secured credit facility, to Ba1, LGD2, 22% from Ba2
   * Senior subordinated notes, to B1, LGD5, 74% from B3
   * Corporate Family Rating to Ba3 from B1
   * Probability of Default Rating to Ba3 from B1

Hexcel Corporation, headquartered in Stamford, Connecticut, is a
leading advanced structural materials company. It develops,
manufactures and markets lightweight, high-performance structural
materials, including carbon fibers, reinforcements, prepregs,
honeycomb, matrix systems, adhesives and composite structures,
used in commercial aerospace, space and defense and industrial
applications.


HOLYOKE HOSPITAL: Moody's Holds Ba1 Rating on $11.4 Million Bonds
-----------------------------------------------------------------
Moody's Investors Service has affirmed its Ba1 rating assigned to
Holyoke Medical Center's $11.4 million of Revenue Bonds, Series B
issued by the Massachusetts Health & Educational Facilities
Authority.

The bonds are secured by a gross revenue pledge of Holyoke and no
interest rate derivatives.

Strengths:

   * Fiscal year 2006 marks the second year of significant
     operating improvement at Holyoke's parent, Valley Health
     Systems, of which Holyoke represents about 85% of system
     operating revenues, with operating cash flow increasing to
     $6.6 million (5.4% operating cash flow margin) from
     $5.8 million (5.0% cash flow margin) in FY 2005 and a large
     improvement over $2.5 million (2.4% margin) in FY 2004.

   * State appropriations of $3.6 million from the States
     Distressed Provider Expendable Trust Fund received in
     FY 2006, an increase over $2.1 million received in the funds'
     inaugural year, FY 2005; however, future receipt of these
     funds is uncertain and any discontinuation of such funding
     will be a significant credit factor.

   * Further strengthening of debt service coverage measures with
     2.91x debt to cash flow from higher (weaker) 4.26x in FY 2005
     down from very high 11.26 times in FY 2004) and improved
     maximum annual debt service coverage (Moody's adjusted) of
     2.32 in FY 2006, from weaker 1.92 times in FY 2005 and very
     low 1.16 in FY 2004.

   * Increase in liquidity to $18.2 million (57 days cash on hand)    
     in FY 2006 from $13.6 million (45 days cash) in FY 2005, due
     to the use of leases to fund capital needs, reduction in days
     in accounts receivable, receipt of state funds and an
     unrestricted gift of $1 million in FY 2006.

Challenges:

   * Decline of 3% in inpatient admissions in FY 2006 following
     moderate 1% increase in FY 2005; flat outpatient surgery
     growth in FY 2005 and FY 2006 (and a 9% decline in 3 months
     of FY 2007) primarily due to the replacement of four
     anesthesiologists in FY 2006 and subsequent ramping up of new
     group.

   * FY 2006 operating margin approximately $2.3 million
     unfavorable to budget due to lower than anticipated volumes,
     expense related to employment of anesthesiology group and
     unbudgeted increase in average length of stay.

   * Poor demographics in the service area with poverty levels
     above state and national averages and per capita income at
     61% of state average; 8.6% decline in population between 1990
     and 2005 (though the area has seen 3% growth since 2000).

   * Strong competition from two larger providers located
     15 minutes away in Springfield, 609-bed Baystate Medical
     Center (rated A1) and 375-bed Mercy Hospital (part of A1-
     rated Catholic Health East); Holyoke reports an estimated 31%
     market share in its primary service area which is behind
     Baystate's 32% market share but ahead of Mercy's 16% market
     Share.

Outlook:

The rating outlook is stable and reflects the improved financial
performance in FY 2005 and FY 2006 which will likely be
sustainable in FY 2007 given the expectation of continued receipt
of state appropriations; given the uncertainty surrounding
continuation of these funds, Moody's remains concerned for the
longer term financial performance of the hospital.

What could change the rating -- up

Much improved financial performance, growth in liquidity, growth
in inpatient and outpatient volumes and market share.

What could change the rating -- down

Departure from current results, decline in liquidity, decline in
market share and volumes, material increase in leverage, possibly
related to loss of state appropriations.

Key indicators:

   * Based on financial statements for Valley Health Systems, Inc.
     and Affiliates

   * First number reflects audit year ended September 30, 2005

   * Second number reflects audit year ended September 30, 2006

   * Investment returns normalized at 6% unless otherwise noted

   * Inpatient admissions: 7,377; 7,161 (hospital only)

   * Total operating revenues: $114.7 million; $122.3 million

   * Moody's-adjusted net revenue available for debt service:
     $6.7 million; $8.8 million

   * Total debt outstanding: $22.7 million; $21.8 million

   * Maximum annual debt service (MADS): $3.5 million;
     $3.8 million

   * MADS coverage based on reported investment income: 1.82x;
     2.32x

   * Moody's-adjusted MADS coverage: 1.92x; 2.32x

   * Debt-to-cash flow: 4.26x; 2.91x

   * Days cash on hand: 45 days; 57 days

   * Cash-to-debt: 60.0%; 83.3%

   * Operating margin: -0.2%; 0.1%

   * Operating cash flow margin: 5.0%; 5.4%

   * RATED DEBT

      -- Medical Center MHEFA Revenue Bonds, Series B,
         $11.4 million.


INTEGRATED ALARM: Closes Merger Transaction with Protection One
---------------------------------------------------------------
Protection One, Inc. and Integrated Alarm Services Group disclosed
the closing of their merger, pursuant to which IASG will merge
with a wholly owned subsidiary of Protection One.

In addition, Protection One stock ceased trading on the OTC
Bulletin Board and commenced trading on the Nasdaq(R) Global
Market.  With its move to Nasdaq, Protection One's trading symbol
changed to PONE.

On March 27, 2007, IASG shareholders voted overwhelmingly in favor
of the merger, which received 99.9% of the 17.7 million shares
cast.  Pursuant to the merger, shareholders of IASG will receive
0.29 shares of Protection One, Inc. common stock for each share of
IASG common stock owned, plus cash for any fractional shares.  
Approximately 7.1 million shares of Protection One common stock
will be issued resulting in a total of 25.3 million shares
outstanding, of which IASG and Protection One shareholders will
own approximately 28% and 72%, respectively.

                             Outlook

With the completion of the merger, Protection One assumes
ownership of Criticom International, which will combine with
Protection One's wholesale monitoring provider, CMS, and will soon
operate under a new name, Criticom Monitoring Services(TM).

Protection One will continue operating under the name Protection
One(R), operating under the name Network Multifamily(R).  In
total, the merged company, which will remain based in Lawrence,
Kansas, will have 73 branches across the country, six state-of-
the-art monitoring response centers, and a dedicated disaster
recovery center.

Management believes that larger scale operations, elimination of
redundancies and greater purchasing power generated by this merger
will, within 12 months, result in net savings of $11 million to
$13 million on an annualized basis.  On a combined basis,
Protection One and IASG had revenues and adjusted EBITDA of $364.9
million and $106.0 million, respectively, for the 12-month period
ended Dec. 31, 2006.  As of Dec. 31, 2006, Protection One and IASG
on a combined basis had recurring monthly revenue, a well known
valuation metric used for monitoring services companies, of
$26.9 million.

"Our successful completion of this merger paves the way to create
a leading security monitoring services company with a diversified
portfolio of security assets," Richard Ginsburg, President and CEO
of Protection One, said.  "It is a logical step for both
Protection One and IASG and one that we believe will create value
for shareholders, enhanced services for our customers and a
growing company, with many new opportunities, for our employees.  
I would also like to thank IASG's shareholders for supporting the
merger so decisively."

The companies began merging operations on April 2, 2007, with a
transition period occurring before IASG residential and commercial
customers will begin seeing the Protection One name as their
service provider and before Protection One will begin servicing or
billing customers.  In addition, Criticom dealers will soon
receive information about the specific benefits of this merger for
them.

                        New Board Members

As part of the merger closing, current IASG Board members, Arlene
M. Yocum and Raymond C. Kubacki, will join the new Protection One
Board of Directors.  Protection One expects to announce the
appointment of a ninth member to the board shortly.

                        About Protection One

Headquartered in Lawrence, Kansas, Protection One Inc. (Nasdaq:
PONE, previously OTC Bulletin Board: PONN) --
http://www.protectionone.com/-- provides installation,   
maintenance and monitoring of these state-of-the-art, user-
friendly fire and burglar alarm systems.  Network Multifamily, the
company's wholly owned subsidiary, is the largest and oldest
monitored security provider to the multifamily housing market.  
Protection One's 2,300 professionals serve its customers from more
than 64 branch offices and three state-of-the-art monitoring
facilities.

                      About Integrated Alarm

Headquartered in Albany, New York, Integrated Alarm Services Group
Inc. (NASDAQ: IASG) -- http://www.iasg.us/-- provides total  
integrated solutions to independent security alarm dealers located
throughout the United States to assist them in serving the
residential and commercial security alarm market.  IASG's services
include alarm contract financing including the purchase of dealer
alarm contracts for its own portfolio and providing loans to
dealers collateralized by alarm contracts.  IASG, with
approximately 4,000 independent dealer relationships, is also the
largest wholesale provider of alarm contract monitoring and
servicing.


INTEGRATED ALARM: Merger Prompts Moody's to Withdraw Ratings
------------------------------------------------------------
Moody's Investors Service withdrew Integrated Alarm Services
Group, Inc.'s B3 Corporate Family Rating and related debt ratings
following the recent consummation of its merger with Protection
One Alarm Monitoring, Inc.  After the completion of the merger,
all debt related to IASG were redeemed.

Ratings Withdrawn:

   * B3 Corporate Family Rating;

   * B3 Probability of Default Rating;

   * B3, LGD4, 58% rating on the $125 million second lien notes
     due 2011; and,

   * SGL-4 Speculative Grade Liquidity Rating.

Headquartered in Albany, New York, Integrated Alarm Services Group
Inc. provides alarm monitoring services to independent security
alarm companies.  For the fiscal year ended Dec. 31, 2006, the
company reported approximately $94 million in revenues.


JEAN COUTU: Inks Settlement Agreement with 8-1/2% Noteholders
-------------------------------------------------------------
The Jean Coutu Group, Inc. has entered into a settlement agreement
with holders of a majority of the outstanding principal amount of
its 8-1/2% Senior Subordinated Notes due 2014 in connection with
the litigation in which the company is seeking a declaratory
judgment that, among other things, the sale of certain of the
company's assets to Rite Aid Corporation constitutes the sale of
substantially all of its properties and assets for the purposes of
the Indenture.

Holders of the Notes party to the settlement agreement are
agreeing to tender their Notes and deliver their consents to the
company's tender offer and consent solicitation which was made on
the terms and subject to the conditions set forth in the Offer to
Purchase and Consent Solicitation Statement dated March 28, 2007
and the accompanying Consent and Letter of Transmittal, as amended
hereby.  As part of the settlement agreement the company has
agreed to pay certain litigation expenses of certain other parties
to the litigation.  Holders of the Notes who are entering into the
settlement agreement hold a majority in aggregate principal amount
of the outstanding Notes and upon the tender of their Notes as
agreed in the settlement agreement the Proposed Amendments will be
approved.

In connection with the settlement agreement the company is
amending the total consideration offered to holders of the Notes
in its tender offer and consent solicitation for the Notes.  The
company is amending the total consideration by decreasing, from
200 basis points to 150 basis points, the Spread used in
calculating the total consideration pursuant to the fixed spread
pricing formula, as set forth in the Offer Documents.  The company
is not otherwise amending the pricing formula.

The company amended the Consent Expiration Date, which will was
yesterday, April 4, 2007 and the Price Determination Date, which
will now be 2:00 p.m. New York City time on April 6, 2007, unless
extended.

The offer by The Jean Coutu Group will expire at 8:00 a.m., New
York City time, on April 26, 2007, unless extended.

Holders of Notes who are not party to the settlement agreement and
who tender their Notes prior to the revised Consent Expiration
Date may validly withdraw their tendered Notes and revoke their
consents at any time prior to the revised Consent Expiration Date,
but not thereafter unless the tender offer and the consent
solicitation is terminated without any Notes being purchased.

Questions about the tender offer may be directed to Global
Bondholder Services Corporation, the information agent for the
tender offer and consent solicitation, at (866) 540-1500 (toll
free).  Copies of the Offer Documents and other related documents
may be obtained from the information agent.

                    About The Jean Coutu Group

The Jean Coutu Group (PJC) Inc. is a drugstore chain in North
America and in the eastern United States and Canada.  The company
and its combined network of 2,186 corporate and franchised
drugstores employ more than 61,000 people.  The Jean Coutu Group's
United States operations employ 46,000 people and comprise 1,859
corporate owned stores located in 18 states of the Northeastern,
mid-Atlantic and Southeastern United States. The Jean Coutu
Group's Canadian operations and franchised drugstores in its
network employ over 15,000 people and comprise 327 PJC Jean Coutu
franchised stores in Quebec, New Brunswick and Ontario.

                          *     *     *

The Jean Coutu Group Inc.'s $350 million Guaranteed Senior Secured
Revolver carries Moody's Investors Service's B2 rating.  The
company also carries Moody's B3 long-term corporate family, senior
unsecured debt, and probability of default ratings; B1 bank loan
debt rating; and Caa2 senior subordinated debt rating.

The company also carries Standard & Poor's B+ long-term foreign
and local issuer credit ratings.

Also, the company bears Fitch's CCC senior subordinated debt
rating, B- long-term issuer default rating; BB- bank loan credit
rating; and B+ senior unsecured debt rating.


JORDAN INDUSTRIES: Ernst & Young Raises Going Concern Doubt
-----------------------------------------------------------
Ernst & Young LLP, in Chicago, expressed substantial doubt about
Jordan Industries Inc.'s ability to continue as a going concern
after auditing the company's financial statements for the years
ended Dec. 31, 2006, and 2005.  The auditing firm pointed to the
company's substantial debt maturing within the next year.

Jordan Industries Inc. reported net income of $163.4 million on
net sales of $256.7 million for the year ended Dec. 31, 2006,
compared with a net loss of $6 million on net sales of
$278.9 million a year ago.  2006 results includes income related
to the sale of Kinetek Inc. of $165.1 million.

The decrease in sales was primarily due to reduced sales in the
Jordan Specialty Plastics segment and to a lesser extent, declines
in the Jordan Auto Aftermarket segment.  The sales decline at
Jordan Specialty Plastics was driven by reduced sales of certain
hardware products to the wholesale distribution channel due to
the limited availability of insulation material used in the
products, offset partially by sales growth in office products and
reflector products.  Sales decline at Jordan Auto Aftermarket is
primarily the result of a 27% decrease in the sales of torque
converters to original equipment manufacturers.  In addition,
better warranty experience on new vehicles has also reduced demand
for torque converter replacements.

Operating income from continuing operations decreased
$10.6 million, to a loss of $2.5 million for 2006 from income of
$8.1 million for 2005.  The most significant decrease in operating
income was due to income related to the refinancing of an
affiliate of $8 million in 2005 and income of $14.7 million
in 2005 from the reversal of reserves previously recorded against
the receivables from JIR Broadcast and JIR Paging which were
recorded in previous years and were no longer necessary at
Dec.  31, 2005, as these receivables were deemed fully
collectible.  

At Dec. 31, 2006, the company's balance sheet showed
$311.7 million in total assets and $403.3 million in total
liabilities, resulting in a $91.6 million total shareholders'
deficit.

The company's balance sheet at Dec. 31, 2006, also showed strained
liquidity with $244 million in total current assets available to
pay $277.8 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cc3

                       Sale of Kinetek Inc.

In November 2006, the company's wholly owned subsidiary, Motors
and Gears Holdings Inc. sold the operating subsidiaries of its
wholly-owned subsidiary, Kinetek Inc.  Kinetek, Inc. was comprised
of 6 operating companies in the motors and controls industries.  
Kinetek Inc.'s operating subsidiaries were sold to Resolute Fund
for cash proceeds of $445.4 million prior to certain fees and
expenses.  

                      Debt Maturing in 2007

At Dec. 31, 2006, the company had outstanding long term debt of
$307 million, of which $209.1 million is due in 2007.  Currently,
the company is contemplating various avenues of refinancing or
repaying this debt and management is confident that it will do so
prior to maturity.

                     About Jordan Industries

Headquartered in Deerfield, Ill., Jordan Industries Inc.
-- http://www.jordanindustries.com/ -- through its plastic  
segment, serves a broad range of wholesale and retail markets
within the highly-fragmented specialty plastics industry.  The
group primarily designs, manufactures and sells folder and
application display holders, plastic injection-molded hardware and
office supply products, extruded vinyl chairmats, and safety
reflectors for bicycles and commercial truck manufacturers.  The
auto aftermarket segment, on the other hand, is focused primarily
on the remanufacture and supply of torque converters to the
automotive aftermarket parts industry.


KEPLER HOLDINGS: Moody's Rates $200 Million Senior facility at Ba2
------------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba2 rating to
the $200 million senior secured term loan facility of Bermuda-
domiciled Kepler Holdings Limited following review of final
executed documents.  The outlook for the rating is stable. This
definitive rating replaces the provisional rating previously
assigned on Feb. 26, 2007.

The privately-placed senior secured term loan facility, which is
being syndicated to financial institutions and other institutional
lenders, is sponsored by Hannover Ruckversicherung AG and its
affiliates, E+S Ruckversicherung AG and Hannover Re Limited, for
natural catastrophe risks.

Investors will provide aggregate catastrophe excess of loss
reinsurance protection -- on an indemnity basis -- to Hannover Re
for the portion of losses in excess of a stipulated attachment
point up to a stipulated exhaustion point.  The annual attachment
and exhaustion probabilities will be 120bps and 40bps,
respectively.  The gross dollar values corresponding to these
points will be based on the average of the Kepler portfolio annual
aggregate exceedance curves as of January 1 and July 1 of each
year.  The gross dollar values will be determined once in 2007 and
will be reset in 2008 to keep the attachment and exhaustion
probabilities constant.  Incurred losses and incurred but not
reported losses will be included only in the final commutation
calculation which will occur no later than June 30, 2009.

The rating for the term loan is supported by a probabilistic
analysis -- using a custom financial model -- to determine both
the probability of loss P(D) and expected loss E(L) to Kepler
Holdings' lenders over the two risk periods.

This approach involves these steps:

   * assessing the promise of interest and principal to investors;

   * examining potential loss scenarios and their associated
     probabilities;

   * calculating P(D) and E(L) relative to the promised interest
     and principal;

   * comparing P(D) and E(L) to those of a set of benchmark
     securities with the same average duration, roughly
     2.3 years, in order to arrive at a rating.

Moody's has made certain probabilistic assumptions in its
financial model with regard to:

   * the risk of overstated reserves at the time of commutation;

   * the uncertainty underlying the annual exceedance curve;

   * Hannover's ability to pay quarterly reinsurance premiums
     (e.g., interest payments) and to make the collateral trust
     whole for any investment losses; and

   * the investment performance of the collateral assets.  

The rating also reflects qualitative considerations such as
Hannover's option to buy reinsurance on its retained share, the
risk that reinsurers, including Hannover Re, may relax contract
terms and conditions as the market becomes more competitive, and
the fact that segregated cell technology has never been tested in
bankruptcy.

Moody's analysis is sensitive to assumptions about the overall
annual aggregate exceedance probability curve.  

As such, Moody's has increased AEP modeled losses by various
percentages.  While the Kepler portfolio is designed to be highly
modellable using industry vendor models, Hannover mainly uses
aggregate-level models, instead of detailed-level models, which
means that it relies largely on industry average assumptions --
instead of property specific information -- to assemble its AEP
curves.

Vendor models also do not capture certain contract elements such
as loss adjustment expenses and extra-contractual obligations,
which are covered under this excess of loss agreement.

Further, the Kepler portfolio has significant exposure to regions
outside the U.S., particularly to European windstorms, where data
quality tends to be less detailed.

That said, Hannover does perform a number of data quality checks
before starting the vendor models, especially for US business
where about 30% of the underlying treaties are modeled using
detailed-level models.  The company uses a data quality tool to
analyze detailed loss data supplied by clients and, in general,
prefers not to rely solely on client data.

Moody's also acknowledges some of the conservatism that Hannover
embeds into its practices such as aggregating exposures on a
peril/territory level first before deriving the overall AEP curve.
This introduces conservatism into the process by not allowing for
the potential erosion of aggregate limits and/or limited
reinstatements across different peril/territory classes.  

Further, Hannover assumes full correlation between exposures
modeled using different approaches or vendor models.  Moody's also
views favorably that an assessment of Hannover's aggregation
management and catastrophe modeling practices was done by an
independent third party.

The rating will be monitored quarterly to reflect the build-up of
losses that have occurred up to that time.  If a meaningful
catastrophe event occurs, Moody's will reconstitute the overall
AEP curve using the curves for individual perils and territories
that are relevant for the remainder of the year.  The financial
model will be updated to reflect this new curve along with an
estimated build-up of losses and any anticipated changes to
Hannover's credit profile.  The probability of default and
expected loss to lenders will be updated, and Moody's will take
rating actions, if any, accordingly.

The Kepler portfolio represents roughly 80% of Hannover Re's
entire property catastrophe reinsurance book.  European windstorm
and U.S. hurricane perils are the biggest contributors to modeled
losses, particularly in the tails.  Roughly three-quarters of the
underlying business is transacted at January 1, such that Moody's
expects only modest deviation from the projected portfolio for
2007.

Rating assigned with a stable outlook:

   * Kepler Holdings Limited

   -- $200 million senior secured term loan facility due June 2009
      at Ba2.

Kepler Holdings Limited is a newly formed Bermuda exempted
company, wholly owned by a charitable purpose trust.  Kepler
Holdings has entered into the $200 million senior secured credit
facility, the proceeds of which are deposited into a segregated
account, Kepler Re. Kepler Re is a newly formed segregated account
of Kaith Re Ltd., an existing licensed Class 3 Bermuda reinsurer
and Bermuda segregated accounts company.  Kaith Re, on behalf of
Kepler Re, has entered into an aggregate indemnity catastrophe
excess of loss reinsurance agreement with Hannover Re.


LAND O'LAKES: Earns $44.5 Million in Quarter Ended December 31
--------------------------------------------------------------
Land O'Lakes Inc. reported net earnings of $44.5 million on sales
of $1.9 billion for the fourth quarter ended Dec. 31, 2006,
compared with a net loss of $1.6 million on sales of $2 billion
for the fourth quarter of 2005.

Full-year sales were $7.3 billion, with net earnings of
$88.7 million, compared to sales of $7.6 billion and net earnings
of $128.9 million for 2005.  Net earnings for 2005, however,
included a $69.7 million gain on the company's sale of its
ownership position in CF Industries Inc.  Excluding that gain, net
earnings were up 50 percent.

The decrease in net sales was primarily attributed to a
$442.8 million decrease in net sales in the Dairy Foods segment
due to lower milk, butter, and cheese commodity markets in 2006
compared to 2005.  This decline was partially offset by increases
in sales in the Seed and Feed segments of $102.1 million and
$124.5 million, respectively, due to higher volumes as well as
higher commodity and product prices in 2006 compared to 2005.  

Gross profit increased to $660.9 million in 2006 compared to
$585 million in 2005, primarily due to a $52.8 million improvement
in the Dairy Foods segment as a result of improved margins and
volumes as well as improved industrial operations and unrealized
hedging gains in 2006 compared to unrealized hedging losses in
2005.  Increases in the Feed and Seed segments due to volume
improvements, margin increases and unrealized hedging gains in
2006 also improved gross profit.

Total EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) was $250.1 million in 2006, compared to EBITDA of
$311.6 million one year ago.  Like net earnings, 2005 total EBITDA
includes last year's gain on the CF Industries sale.

Total balance sheet debt, including capital leases, was
$708.3 million at the end of 2006, a $38.9 million improvement
from total debt of $747.2 million at Dec. 31, 2005.

At Dec. 31, 2006, the company's balance sheet showed
$3,055.1 million in total assets, $2,101.8 million in total
liabilities, $8.8 million in minority interests, and
$944.5 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cbd

                     About Land O'Lakes Inc.

Land O'Lakes Inc. -- http://www.landolakesinc.com-- is a  
national, farmer-owned food and agricultural cooperative.  Land
O'Lakes does business in all 50 states and more than 50 countries.
It is a leading marketer of a full line of dairy-based consumer,
foodservice and food ingredient products across the United States;
serves its international customers with a variety of food and
animal feed ingredients; and provides farmers and ranchers with an
extensive line of agricultural supplies and services.  Land
O'Lakes also provides agricultural assistance and technical
training in more than 25 developing nations.

                          *     *     *

Moody's Investors Service assigned a Ba2 Senior Secured Debt
rating to Land O'Lakes Inc. on Sept. 21, 2006.  Moody's also
placed a Ba3 Rating to Land O'Lakes' Senior Unsecured Debt on
Sept. 21, 2006.


MALDEN MILLS: Court Converts Chap. 11 Case to Chap. 7 Liquidation
-----------------------------------------------------------------
Malden Mills Industries Inc.'s Chapter 11 case has been officially
changed to a Chapter 7 liquidation, a conversion requested by both
the company and the U.S. Trustee overseeing its bankruptcy
proceedings, Bankruptcy Law360 said on its Web site Tuesday.

As reported in the Troubled Company Reporter on March 13, 2007,
the Debtors told the U.S. Bankruptcy Court for the District of
Massachusetts that they  expect to wind-down their case through
chapter 7 and that their Wind-Down request had been granted.

The Debtors further said that the Wind-Down Order provided for
General Electric Capital Corp.'s consent to the use of cash
collateral in the form of sale proceeds to fund the chapter 11
expenses from the closing date through the conversion subject to
the Wind-Down Budget.

As reported in the Troubled Company Reporter on March 5, 2007, the
Court approved the sale of the Debtors business to Chrysalis
Capital Partners LLC for $44 million plus assumed liabilities.

Bill Rochelle of Bloomberg News however reports that the sale
didn't generate enough cash to fund a chapter 11 liquidation.

                       About Malden Mills

Based in Lawrence, Mass., Malden Mills Industries Inc. --
http://www.polartec.com/-- develops, manufactures, and
markets Polartec(R) performance fabrics.  Polartec(R) products
range from lightweight wicking base layers to insulation to
extreme weather protection and are utilized by the best clothing
brands in the world.  In addition, Polartec(R) fabrics are used
extensively by all branches of the United States military,
including the Army, Navy, Marine Corps, Air Force, and Special
Operations Forces.  The company also has operations in Germany,
Spain, France and the U.K.

The company filed for chapter 11 protection on Nov. 29, 2001
(Bankr. Mass. Case No. 01-47214).  The Court confirmed the
Debtor's plan on Aug. 14, 2003.

The company and four of its affiliates filed their second chapter
11 petitions on Jan. 10, 2007 (Bankr. D. Del. Case Nos. 07-10048
through 07-10052).  Laura Davis Jones, Esq., and Michael Seidl,
Esq., at Pachulski, Stang, Ziehl Young, Jones & Weintraub, PC,
represent the Debtors.  Bruce F. Smith, Esq., Steven C. Reingold,
Esq., and Michael J. Fencer, Esq., at Jager Smith P.C., and Eric
E. Sagerman, Esq., and David J. Richardson, Esq., at Winston &
Strawn LLP, represent the Official Committee of Unsecured
Creditors.  When the Debtors filed for protection from their
creditors, they listed estimated assets between $1 million to
$100 million and estimated debts of more than $100 million.  The
Debtors' exclusive period to file a chapter 11 plan expires on May
10, 2007.

On Jan. 12, 2007, the Delaware Bankruptcy Court transferred the
case to the U.S. Bankruptcy Court for the District of
Massachusetts (Case No. 07-40124).


MATRITECH INC: Losses Cue PwC to Raise Going Concern Doubt
----------------------------------------------------------
PricewaterhouseCoopers LLP raised substantial doubt about
Matritech Inc.'s ability to continue as a going concern citing
recurring losses and negative cash flows from operations after
auditing the company's financial statements as of Dec. 31, 2006,
and 2005.

The company had $11.9 million net loss on total revenues of
$12.2 million for the year ended Dec. 31, 2006, as compared with a
net loss of $7.9 million on total revenues of $10.4 million for
the year ended Dec. 31, 2005.

As of Dec. 31, 2006, the company listed total assets of
$5.5 million, total liabilities of $8.3 million, and commitments
and contingencies of $208,624, resulting to total stockholders'
deficit $2.9 million.

The company's December 31 balance sheet also showed strained
liquidity with total current assets of $3.8 million and total
current liabilities of $7.4 million.  Accumulated deficit as of
Dec. 31, 2006, was $109.9 million.

                 Liquidity and Capital Resources

The company has substantially increased its debt to about
$10.2 million as of Jan. 31, 2007.

Based on the company's negative working capital at Dec. 31, 2006,
of $3.6 million plus funds received from its January 2007 private
placement and its current forecast of cash utilization, the
company expects to be able to fund operations into the second
quarter of 2007, provided it pays interest and principal on its
2006 Secured Convertible Notes in stock as the company did in
January, February and March, 2007.

However, the company may not be able to raise needed capital on
terms that are acceptable to the company, or at all.  If the
company raises funds on unfavorable terms, it may provide rights
and preferences to new investors, which are not available to
current shareholders.  In addition, the company's existing
financing arrangements contain anti-dilutive provisions, which may
require the company to issue additional securities if certain
conditions are met.  

If the company does not timely receive additional financing or
does not receive an adequate amount of additional financing, it
will be required to curtail expenses by reducing research and/or
marketing or by taking other steps that could hurt its future
performance, including but not limited to, the premature sale of
some or all of its assets or product lines on undesirable terms,
merger with or acquisition by another company on unsatisfactory
terms or the cessation of operations.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cab

                          About Matritech

Matritech Inc. (AMEX: MZT) is a biotechnology company that
develops, manufactures, markets, distributes and licenses cancer
diagnostic technologies and products.  It is focused primarily on
the early detection of various types of cancer because treatment
options may be greater and/or more successful and treatment costs
may be lower when tumors are detected in their early stages.  The
company's revenues are derived primarily from product sales.


METCARE RX: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Lead Debtor: Metcare Rx Pharmaceutical Services Group, L.L.C.
             870 Pompton Avenue, Unit B-2
             Cedar Grove, NJ 07009

Bankruptcy Case No.: 07-14612

Debtor-affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Metcare Rx-Ormond Beach Pharmaceutical     07-14614
        Services, L.L.C.

      Metcare Rx-Orange City Pharmaceutical      07-14617
        Services, L.L.C.      

      Metcare Rx Laurel, L.L.C.                  07-14618

      Metcare Rx Pharmaceutical                  07-14619
        Services-MD, L.L.C.

      Metcare Rx, Inc.                           07-14620

Type of Business: The Debtors form a full-service pharmacy
                  management company that offers customized
                  solutions and comprehensive pharmacy managed
                  care services.  See http://www.metcarerx.com/

Chapter 11 Petition Date: April 3, 2007

Court: District of New Jersey (Newark)

Judge: Donald H. Steckroth

Debtors' Counsel: Bruce J. Wisotsky, Esq.
                  Norris, McLaughlin & Marcus, P.A.
                  721 Route 202-206 North
                  Bridgewater, NJ 08807

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtors' 20 Largest Unsecured Creditors:

   Entity                                          Claim Amount
   ------                                          ------------
Bellco                                               $1,639,235
5500 New Horizons Boulevard
North Amityville, NY 11701

Dechert, L.L.P.                                        $194,161
P.O. Box 7247-6643
Philadelphia, PA 19170-6643

Metropolitan Health Networks, Inc.                     $130,000
One Clearlake Centre,
250 South Australian Avenue
Suite 400
West Palm Beach, FL 33401

William Lord                                            $37,500

QS/1                                                    $36,421

G.E. Healthcare Financial Services                      $34,085

G.E. Capital                                            $25,893

Lazar Levine & Felix, L.L.P.                            $21,930

Americorp Financial, L.L.C.                             $20,855

Goldstein Lewin & Co.                                   $18,622

Research America                                        $15,000

T-Mobile                                                $14,122

Squire, Sanders & Dempsey, L.L.P.                       $12,824

Cuthill & Eddy, L.L.C.                                  $12,555

Pepper Hamilton, L.L.P.                                 $11,563

Par-Med Pharmaceuticals                                 $11,540

N.T.S.                                                   $9,607

Benderson Development Co.                                $8,925

Damian & Valori, L.L.P.                                  $8,256

Cbiz-McClain                                             $7,000


METROLOGIC INSTRUMENTS: Moody's Cuts Corporate Family Rating to B3
------------------------------------------------------------------
Moody's Investors Service downgraded Metrologic Instruments'
corporate family rating and probability of default rating to B3
from B2 following the recent debt financed share repurchase.  

At the same time, Moody's assigned a B2 rating to the first lien
secured credit facility, which is comprised of a $170 million term
loan and a $35 million undrawn revolver, and a Caa2 rating to the
$75 million senior secured second lien.  Proceeds from the
transaction were used to refinance $200 million of debt,
consisting of a $125 million first lien and $75 million second
lien, and to repurchase about $40 million of stock.  The ratings
on the existing first and second lien facilities will be withdrawn
upon closing.  The ratings outlook is stable.

"The downgrade reflects Metrologic's aggressive financial policy
of increasing its leverage to repurchase stock less than six
months after the initial ratings were assigned" said Kevin
Cassidy, Vice President/Senior Analyst at Moody's Investors
Service.

"The previous B2 corporate family rating was predicated on the
expectation of the company reducing its leverage" Cassidy noted.

Metrologic is moderately positioned in its current rating category
with proforma adjusted leverage in excess of what Moody's would
expect for a B3 rated company.

"The company's ratings and/or outlook could be further revised
down over the next year if the company is unable to meaningfully
reduce its adjusted leverage or if it implements any additional
financially aggressive policies." Cassidy added.

The ratings for the two senior secured facilities reflect both the
overall probability of default of the company, to which Moody's
assigns a PDR of B3, and a loss given default of LGD 3 for the
first lien and LGD 5 for the second lien.  The B2 rating of the
first lien senior secured credit facility reflects an LGD3, 36%
loss given default assessment as this facility is secured by a
pledge of all of the company's assets and there is a significant
amount of second lien debt below it.  The Caa2 rating of the
second lien reflects an LGD5, 86% loss given default assessment
given that it is contractually subordinated to the first lien.
Both the first lien and second lien benefit from the full
guarantees of existing and future subsidiaries.

Assigned:

   * $170 Million Senior Secured First Lien Term Loan, rated B2,
     LGD3, 36%;

   * $35 Million Revolving Credit Facility, rated B2, LGD3, 36%;

   * $75 Million Senior Secured Second Lien Term Loan, rated Caa2,     
     LGD5, 86%;

Downgraded:

   * Corporate family rating, to B3 from B2; and
   * Probability of default rating, to B3 from B2.

These ratings will be withdrawn upon closing:

   * $35 Million Revolving Credit Facility, rated B1, LGD3, 33%;

   * $125 Million Senior Secured First Lien Term Loan, rated B1,  
      LGD3, 33%;

   * $75 Million Senior Secured Second Lien Term Loan, rated Caa1,
     LGD5, 84%

Headquartered in Blackwood, New Jersey, Metrologic Instruments,
Inc. is a global supplier for data capture and collection
hardware, hardware, optical solutions, and image processing
software.  The company revenue for the year ended Dec. 31, 2006,
approximated $215 million.


MKT INC: Case Summary & 20 Largest Unsecured Creditors
------------------------------------------------------
Debtor: MKT, Inc.
        P.O. Box 23037
        Chagrin Falls, OH 44023-0037

Bankruptcy Case No.: 07-12243

Chapter 11 Petition Date: April 3, 2007

Court: Northern District of Ohio (Cleveland)

Judge: Randolph Baxter

Debtor's Counsel: Kenneth J. Freeman, Esq.
                  Kenneth J. Freeman Co., LPA
                  515 Leader Building
                  526 Superior Avenue
                  Cleveland, OH 44114-1903
                  Tel: (216) 771-9980
                  Fax: (216) 771-9978

Estimated Assets: $100,000 to $1 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                        Nature of Claim     Claim Amount
   ------                        ---------------     ------------
Nu-Line Products, Inc.           Trade Creditor          $251,119
784 Bill Jones Industrial Drive
Springfield, TN 37172

Yangzhou Carol-Well Auto         Trade Creditor          $232,359
Accessories Co., Ltd.
Room 15-201
No. 84 Yuqi Street
Yangzhou, Jiangsu, China

California Bank & Trust          Monies Loaned            $96,030
2399 Gateway Oaks Drive
Suite 110
Sacramento, CA 95833

Fifth Third Bank                 Real Estate             $599,000
                                                         Secured:
                                                         $529,119
                                                       Unsecured:
                                                          $69,881

Pro-Tech                         Trade Creditor           $51,419

Jerpbak Bayless Company          Past Due Rent            $20,006


American Creations               Trade Creeitor           $16,642

Purchase Power                   Office Expense            $7,343

Yellow Transportation            Trade Creditor            $7,107

T-W Sales, Inc.                  Commission                $6,651

Gerrity & Associates             Commission                $6,336

FEDEX Freight                    Delivery Services         $5,775

United Parcel Service            Trade Creditor            $5,381

Transportation Support           Commission                $4,635
Service, Inc.

Office Max Credit                Office Expenses           $4,384

Truck-Lite                       Delivery Service          $4,031

King Sales and Marketing         Commission                $3,847

Toyota Motor Credit Corp.        Vehicle                  $23,131
                                                         Secured:
                                                          $19,350
                                                       Unsecured:
                                                           $3,781

SS&G Financial Services, Inc.    Accounting Services       $3,620

PC Systems                       Trade Creditor            $2,754


MORGAN STANLEY: Moody's Holds Ba1 Rating on Class N-SDF Certs.
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of three classes
and affirmed the ratings of seven classes of Morgan Stanley
Capital I Inc., Commercial Pass-Through Certificates, Series
2006-XLF:

   -- Class A-1, $114,081,382, Floating, affirmed at Aaa
   -- Class A-2, $289,313,000, Floating, affirmed at Aaa
   -- Class X-1, Notional, affirmed at Aaa
   -- Class B, $34,238,000, Floating, upgraded to Aaa from Aa1
   -- Class C, $53,259,000, Floating, upgraded to Aa1 from Aa2
   -- Class D, $38,042,000, Floating, upgraded to Aa2 from Aa3
   -- Class N-LAF, $11,000,000, Floating, affirmed at A3
   -- Class O-LAF, $8,000,000, Floating, affirmed at Baa3
   -- Class N-SDF, $2,000,000, Floating, affirmed at Ba1
   -- Class N-W40, $3,500,000, Floating, affirmed at Baa2

The Certificates are collateralized by eight senior mortgage loan
participations.  As of the March 15, 2007, distribution date, the
transaction's aggregate certificate balance has decreased by
approximately 49.9% to $779.5 million from $1.6 billion at
securitization as a result of the payoff of the John Hancock
Complex Loan at $255.0 million, the $519.5 million partial
prepayment of the Magazine Multifamily Portfolio Loan and
amortization on the One Wilshire Loan.  The remaining loans range
in size from 2.2% to 22.8% of the pooled balance.

Moody's is upgrading pooled Classes B, C and D due to increased
credit support from the loan payoffs as well as the stable
performance of the loans remaining in the pool.


NAKOMA LAND: Trustee Taps CB Richard as Real Estate Broker
----------------------------------------------------------
Angelique Clark, the chapter 7 Trustee appointed in the Nakoma
Land, Inc., and its debtor-affiliates' proceedings, seeks
permission from the U.S. Bankruptcy Court for the District
of Nevada to employ CB Richard Ellis Inc. as exclusive real estate
broker.

The Trustee tells the Court that the Debtors own real property
commonly known as the Nakoma Resort and Spa located in Graegle in
Plumas County, California.

CB Richard will assist the Trustee in marketing and selling the
property for the highest possible value.  The property is
currently valued at $18 million.

The Trustee discloses that CB Richard will receive 4% of the gross
purchase price up to $10 million; plus 3% that portion of the
gross purchase price above $10 million.

Jeff Woolson, a broker at CB Richard, assures the Court that the
Firm is "disinterested" as that term is defined in Section 101(14)
of the Bankruptcy Code.

Headquartered in Reno, Nevada, Nakoma Land, Inc., operates the
Nakoma Resort in Plumas County, California.  The Debtor along with
its affiliates filed for chapter 11 protection on May 19, 2005
(Bankr. D. Nev. Case No. 05-51556).  Alan R. Smith, Esq., at the
Law Offices of Alan R. Smith represented the Debtors.  When the
Debtors filed for protection from its creditors, they listed total
assets of $18,000,000 and total debts of $15,252,580.  Angelique
Clark was appointed as chapter 11 trustee on May 19, 2006.  On
June 20, 2006, the Court verbally converted the Debtors' cases to
chapter 7 liquidation proceedings.  Ms. Clark was as appointed as
the chapter 7 trustee.  Stephen R Harris, Esq., at Belding, Harris
& Petroni, Ltd. Represents Ms. Clark.


NATIONAL GAS: Chapter 11 Trustee Hires GSC as Energy Consultant
---------------------------------------------------------------
Richard M. Hutson, II, Chapter 11 Trustee for National Gas
Distributors, LLC, obtained permission from the U.S. Bankruptcy
Court for the District of North Carolina to employ Claire P.
Gotham and GSC Energy, Inc. as energy consultant and expert
witness.

The Trustee tells the Court that he chose Ms. Gotham citing that
her substantial expertise and experience with issues involving
trading, hedging and pricing of natural gas, which are of great
importance to the estate's litigation.

Ms. Gotham and GSC will provide additional litigation support
services, specifically:

   a) review and analyze the Debtor's transactions with its
      suppliers, transporters and customers;

   b) analyze the factors relevant to the pricing of the natural
      gas to the Debtor's customers and others similarly situated;

   c) determine whether the Debtor received reasonably equivalent
      value in return for the natural gas transferred by the
      Debtor to the defendants within one year prepetition;

   d) determine whether the Debtor received equivalent value in
      return for incurring obligations to provide natural gas to
      certain defendants within one year prepetition; and

   e) prepare expert reports and testimony at deposition and at
      trial with respect to the foregoing.

Ms. Gotham, president and shareholder of GSC Energy, will bill
$200 per hour for this engagement.  Ashmead Pringle, also of GSC
Energy, will bill $250 per hour.

Ms. Gotham assures the Court that the firm is "disinterested" as
that term is defined is Section 101(14) of the Bankruptcy Code.

National Gas Distributors, LLC -- http://www.gaspartners.com/--   
supplied natural gas, propane, and oil to industrial, municipal,
military, and governmental facilities.  As of mid-December 2005,
the company effectively ceased business operations due to
inadequate remaining capital and its inability to arrange for the
purchase and delivery of natural gas to its customers.  The
company filed for bankruptcy on January 20, 2006 (Bankr. E.D.N.C.
Case No. 06-00166).  Ocie F. Murray, Jr., Esq., at Murray Craven
& Inman LLP represented the Debtor in its restructuring efforts.
Richard M. Hutson, II, serves as the Chapter 11 Trustee, and is
represented by Emily C. Weatherford, Esq., and John A. Northen,
Esq., at Northen Blue LLP.  When the Debtor filed for bankruptcy,
it estimated between $1 million to $10 million in assets and
$10 million to $50 million in debts.


NBO SYSTEMS: Tanner LC Raises Going Concern Doubt
-------------------------------------------------
Tanner LC raised substantial doubt about NBO Systems Inc.'s
ability to continue as a going concern after auditing the
company's financial statements as of Dec. 31, 2006, and 2005.  The
auditing firm pointed to the company's recurring losses, working
capital deficit of $13.9 million and an accumulated deficit of
$46.1 million as of Dec. 31, 2006, and negative cash flows from
operating activities of $2.6 million for the year ended Dec. 31,
2006.

For the year 2006, the company incurred a net loss of $5.5 million
on total revenues and other income of $11.6 million, as compared
with a net loss of $5.8 million on total revenues and other income
of $11.2 million for the prior year.

As of Dec. 31, 2006, the company recorded total assets of
$18.3 million and total liabilities of $31.5 million, resulting to
total stockholders' deficit of $13.2 million.  The company held
unrestricted cash and cash equivalents of $941,562 and restricted
cash of $15.2 million as of Dec. 31, 2006.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cb5

NBO Systems Inc. -- http://www.nbo.com/-- develops and markets  
prepaid stored-value card programs that operate on the established
payment systems operated by Visa and MasterCard (open networks) or
on Discover (private dedicated networks).


NEFF CORP: Lightyear Merger Deal Prompts S&P's Negative Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B+' corporate
credit ratings on Neff Corp. and on its operating subsidiaries on
CreditWatch with negative implications following the company's
announcement that it has entered a definitive agreement to be
acquired by Lightyear Capital LLC.  Purchase price was not
disclosed.  Financial terms include a tender offer of the
company's currently outstanding senior secured notes due 2012.  
The transaction is expected to close in the second quarter of
2007.
     
At the same time, S&P affirmed the 'B-' senior secured debt rating
on subsidiary Neff Rental LLC.  The affirmation reflects the
expectation that the company will tender for all of its
outstanding bonds in conjunction with closing.  The terms of the
notes include a change of control provision which grants note
holders the right to require the purchase of all or any part of
the notes at 101% of their principal amount.
     
Neff is a Miami-based equipment rental company operating primarily
in the Sunbelt through 67 locations.  S&P expect to resolve the
CreditWatch upon review of the proposed capital structure, and the
financial and operating strategies of the new financial sponsor.


NEFF RENTAL: Neff Corp/Capital Deal Cues Moody's to Review Ratings
------------------------------------------------------------------
Moody's Investors Service is reviewing the ratings of Neff Rental
LLC for possible downgrade in response to the Neff Corp.'s report
that it has signed a definitive agreement to be acquired by Light
year Capital LLC, a private equity firm, in a transaction valued
at approximately $900 million including the assumption of certain
liabilities.

Ratings under review:

   * corporate family rating, B3;
   * probability of default, B3; and
   * second priority senior secured notes, Caa1, LGD4, 64%.

The company's speculative grade liquidity rating remains at the
SGL-3 level and is not affected by the current review.

Moody's review is focusing on the impact that the proposed
transaction will have on Neff's future capital structure,
financial strategy and credit metrics.  The review is also
assessing the degree to which the company's operating strategy
will be able to sustain earnings, cash flow generation and
liquidity under the new leveraged capital structure.  Certain debt
obligations contain change of control provisions, and to the
extent that any existing debt is redeemed in its entirety under
change of control provisions Moody's will withdraw the ratings.

Neff, headquartered in Miami, Florida, is a regional equipment
rental company in the Southeast and Mid-Atlantic regions.


OMEGA HEALTHCARE: Closes Public Offering of 7.13 Million Shares
---------------------------------------------------------------
Omega Healthcare Investors, Inc. disclosed the closing of the
underwritten public offering of 7,130,000 shares of Omega common
stock at $16.75 per share, less underwriting discounts.  The sale
included 930,000 shares sold in connection with the exercise of an
over-allotment option granted to the underwriters.  Omega received
approximately $113 million in net proceeds from the sale of the
shares, after deducting underwriting discounts and estimated
offering expenses.

Omega intends to use the net proceeds of the offering of the
shares to repay indebtedness under its senior revolving credit
facility.

UBS Investment Bank acted as sole book-running manager for the
offering.  Banc of America Securities LLC, Deutsche Bank
Securities and Stifel Nicolaus acted as co-managers for the
offering.

A prospectus relating to these securities has been filed with the
Securities and Exchange Commission.  The prospectus may be
obtained from:

     UBS Investment Bank
     Prospectus Department
     299 Park Avenue
     New York, NY 10171

Headquartered in Timonium, Maryland, Omega HealthCare Investors,
Inc. (NYSE:OHI) -- http://www.omegahealthcare.com/-- is a real   
estate investment trust investing in and providing financing to
the long-term care industry.  At Dec. 31, 2006, the company owned
or held mortgages on 239 skilled nursing facilities and assisted
living facilities with approximately 27,302 beds located in 27
states and operated by 32 third-party healthcare operating
companies.

                          *     *     *

The company's 7% Senior Notes due 2014 has been assigned a Ba3
rating by Moody's Investors Service, and a BB rating by Standard &
Poor's and Fitch Ratings.


PAETEC CORP: Dec. 31 Balance Sheet Upside-Down by $93 Million
-------------------------------------------------------------
PAETEC Corp. reported 2006 fourth quarter and full year financial
and operating results.

At Dec. 31, 2006, the company's balance sheet showed total assets
of $379,740,000 and total liabilities of $473,055,000, resulting
in a stockholders' deficit of $93,315,000.  The stockholders'
deficit for the same period last year was $50,618,000.

Total revenue for the 2006 fourth quarter increased 12.9% to
$151.5 million from $134.2 million for the 2005 fourth quarter.  
Net income for the 2006 fourth quarter was $2.6 million compared
to net income of $5.9 million for the fourth quarter of 2005,
resulting primarily from increased interest expense.

Net income was $7.8 million for 2006 compared to $14.5 million for
2005. The decrease was primarily attributable to increased
interest expense associated with the indebtedness incurred in
connection with the June 2006 leveraged recapitalization, as well
as $10.5 million in one-time recapitalization transaction charges.

                      Capital Expenditures

PAETEC continued to invest in expansion of its network and product
offerings during 2006.  Capital expenditures for 2006 increased
to $49.3 million from $38.2 million in 2005.  Approximately
$8 million in capital expenditures was used for new switching
infrastructure investments in Newark, New Jersey, and Tampa,
Florida, as well as investments in expanding the MPLS and Voice
over IP networks.

                          US LEC Merger

On Feb. 28, 2007, US LEC Corp. and PAETEC Corp. completed a
planned merger transaction.  The combined company will conduct
business as PAETEC Holding Corp.

Under the terms of the merger agreement, US LEC stockholders are
receiving one share of PAETEC common stock for each share of US
LEC common stock, and PAETEC Corp. stockholders are receiving
1.623 shares of PAETEC common stock for each share of PAETEC Corp.
common stock.  US LEC and PAETEC Corp. stockholders holding stock
certificates will soon receive share exchange instructions.

PAETEC obtained $850 million of new credit facilities at the
closing of the merger transaction.  PAETEC Corp. and US LEC, which
became PAETEC subsidiaries as a result of the merger transaction,
used $800 million of facility proceeds and cash on hand to
refinance substantially all of their senior secured indebtedness
and to repurchase all outstanding shares of US LEC convertible
preferred stock.

                   About PAETEC Communications

Headquartered in Fairport, New York, PAETEC Communications, Inc. -
- http://www.paetec.com/-- supplies communications solutions to  
medium and large businesses and institutions.  PAETEC offers
personalized solutions that include a comprehensive suite of Voice
over Internet Protocol services delivered over its Private-IP MPLS
network.  PAETEC serves more than 15,000 core business customers
across the U.S.


PROTECTION ONE: Closes Merger Transaction with Integrated Alarm
---------------------------------------------------------------
Protection One, Inc. and Integrated Alarm Services Group disclosed
the closing of their merger, pursuant to which IASG will merge
with a wholly owned subsidiary of Protection One.

In addition, Protection One stock ceased trading on the OTC
Bulletin Board and commenced trading on the Nasdaq(R) Global
Market.  With its move to Nasdaq, Protection One's trading symbol
changed to PONE.

On March 27, 2007, IASG shareholders voted overwhelmingly in favor
of the merger, which received 99.9% of the 17.7 million shares
cast.  Pursuant to the merger, shareholders of IASG will receive
0.29 shares of Protection One, Inc. common stock for each share of
IASG common stock owned, plus cash for any fractional shares.  
Approximately 7.1 million shares of Protection One common stock
will be issued resulting in a total of 25.3 million shares
outstanding, of which IASG and Protection One shareholders will
own approximately 28% and 72%, respectively.

                             Outlook

With the completion of the merger, Protection One assumes
ownership of Criticom International, which will combine with
Protection One's wholesale monitoring provider, CMS, and will soon
operate under a new name, Criticom Monitoring Services(TM).

Protection One will continue operating under the name Protection
One(R), operating under the name Network Multifamily(R).  In
total, the merged company, which will remain based in Lawrence,
Kansas, will have 73 branches across the country, six state-of-
the-art monitoring response centers, and a dedicated disaster
recovery center.

Management believes that larger scale operations, elimination of
redundancies and greater purchasing power generated by this merger
will, within 12 months, result in net savings of $11 million to
$13 million on an annualized basis.  On a combined basis,
Protection One and IASG had revenues and adjusted EBITDA of $364.9
million and $106.0 million, respectively, for the 12-month period
ended Dec. 31, 2006.  As of Dec. 31, 2006, Protection One and IASG
on a combined basis had recurring monthly revenue, a well known
valuation metric used for monitoring services companies, of
$26.9 million.

"Our successful completion of this merger paves the way to create
a leading security monitoring services company with a diversified
portfolio of security assets," Richard Ginsburg, President and CEO
of Protection One, said.  "It is a logical step for both
Protection One and IASG and one that we believe will create value
for shareholders, enhanced services for our customers and a
growing company, with many new opportunities, for our employees.  
I would also like to thank IASG's shareholders for supporting the
merger so decisively."

The companies began merging operations on April 2, 2007, with a
transition period occurring before IASG residential and commercial
customers will begin seeing the Protection One name as their
service provider and before Protection One will begin servicing or
billing customers.  In addition, Criticom dealers will soon
receive information about the specific benefits of this merger for
them.

                        New Board Members

As part of the merger closing, current IASG Board members, Arlene
M. Yocum and Raymond C. Kubacki, will join the new Protection One
Board of Directors.  Protection One expects to announce the
appointment of a ninth member to the board shortly.

                      About Integrated Alarm

Integrated Alarm Services Group Inc. (NASDAQ: IASG) --
http://www.iasg.us/provides total integrated solutions to   
independent security alarm dealers located throughout the United
States to assist them in serving the residential and commercial
security alarm market.  IASG's services include alarm contract
financing including the purchase of dealer alarm contracts for its
own portfolio and providing loans to dealers collateralized by
alarm contracts.  IASG, with approximately 4,000 independent
dealer relationships, is also the largest wholesale provider of
alarm contract monitoring and servicing.

                        About Protection One

Headquartered in Lawrence, Kansas, Protection One Inc. (Nasdaq:
PONE, previously OTC Bulletin Board: PONN) --
http://www.protectionone.com/-- provides installation,   
maintenance and monitoring of these state-of-the-art, user-
friendly fire and burglar alarm systems.  Network Multifamily, the
company's wholly owned subsidiary, is the largest and oldest
monitored security provider to the multifamily housing market.  
Protection One's 2,300 professionals serve its customers from more
than 64 branch offices and three state-of-the-art monitoring
facilities.


PROTECTION ONE: Merger Cues Moody's to Hold B2 Corp. Family Rating
------------------------------------------------------------------
Moody's Investors Service assigned a B3 rating to Protection One
Alarm Monitoring Inc.'s new $115 million second lien notes and
upgraded the ratings on the $300 million senior secured term loan
B due 2012 and $25 million revolver due 2010 to Ba3 from B1
following the consummation of the merger with Integrated Alarm
Services Group, Inc.

Concurrently, Moody's affirmed the B2 corporate family rating, B2
probability of default rating and Caa1 rating on its $110 million
senior subordinated notes due 2009.

The rating outlook is stable.  The upgrade concludes the revolver
and term loan ratings review for possible upgrade that began on
Dec. 22, 2006.

"The upgrade of the ratings on the revolver and term loan reflects
the new $115 million second lien notes due 2011 issued by
Protection One, proceeds of which, along with $10 million in cash,
were used to redeem Integrated Alarm Services Group, Inc.'s
$125 million second lien notes due 2011" said Sidney Matti,
Analyst at Moody's.

Additionally, Moody's assigned a B3 rating to the newly issued
$115 million second lien notes reflecting the amount of first lien
secured debt ahead of the second lien notes.

The affirmation of the B2 Corporate Family Rating reflects Moody's
expectations that Protection One's credit metrics will remain
in-line with the company's existing financial profile and the B2
rating category.  Pro forma for the transaction, Protection One's
adjusted debt to EBITDA will decline to 5.8x from the current
5.9x for the twelve months ended Dec. 31, 2006.

Additionally, pro forma EBITDA to interest expense will slightly
decline to 1.7x associated with the additional interest expense as
part of the transaction from 1.8x for the twelve months ended
Dec. 31, 2006.

Moody's last rating action on Protection One was on Dec. 22, 2006,
when the B1 ratings on its $25 million revolver due 2010 and
$300 million term loan B due 2012 were placed on review for
possible upgrade.

Assigned:

   * B3, LGD5, 72% rating on $115 million second lien notes due
     2011.

Upgraded:

   * $25 million senior secured revolver due 2010 to Ba3,    
     LGD2, 26% from B1, LGD3, 36%; and

   * $300 million term loan B due 2012 to Ba3, LGD2, 26% from B1,
     LGD3, 36%.

Affirmed:

   * Caa1, LGD6, 91% from LGD5, 89% rating on the $110 million
     senior subordinated notes due 2009;

   * B2 Probability of Default Rating; and

   * B2 Corporate Family Rating.

Headquartered in Lawrence, Kansas, Protection One Alarm
Monitoring, Inc. installs, monitors and maintains security alarms
catering to residential, commercial, multifamily and wholesale
customers.  For the fiscal year ended Dec. 31, 2006, the company
reported approximately $271 million in revenues.


ROBECO CDO: Moody's Pares Rating on Class B-2 Notes to B1 from Ba2
------------------------------------------------------------------
Moody's Investors Service downgraded these notes issued by Robeco
CDO II Limited:

   * The $22,000,000 Class B-2 Notes Due 2013

      -- Prior Rating: Ba2, on watch for possible downgrade
      -- Current Rating: B1

According to Moody's, the rating action is the result of
deterioration in the credit quality of the transaction's
underlying collateral pool.  As of the February 2007 trustee
report, the concentration of securities with Moody's Rating of
Caa1 or lower is 17.35%.


ROSEDALE MEDICAL: Case Summary & Five Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Rosedale Medical Group, LLC
        14330 Oakhill Park Lane, Suite 200
        Huntersville, NC 28078

Bankruptcy Case No.: 07-30718

Chapter 11 Petition Date: April 3, 2007

Court: Western District of North Carolina (Charlotte)

Judge: J. Craig Whitley

Debtor's Counsel: John W. Taylor, Esq.
                  Taylor & Associates
                  P.O. Box 472827
                  Charlotte, NC 28247
                  Tel: (704) 540-3622
                  Fax: (704) 540-3623

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's Five Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Suntrust Bank                    Loan                  $249,957
P.O. Box 4418 MC 0039
Atlanta, GA 30302

City County Tax Collector        Taxes                  $35,280

McGuireWoods, LLC                Legal Fees             $13,324

Rosedale Commons Property        Dues                   $14,570
Owners Association

A-Pro Lawn Care Service          Trade Debt              $6,070


SACO I: S&P Puts Default Rating on 2004-1 Class B-2 Loans
---------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on three
classes from SACO I Trust's series 2004-1 and 2004-2.  
Concurrently, the ratings on the B-4 classes from series 2005-8,
2005-WM2, and 2005-WM3 were lowered to 'B' from 'BB' and placed on
CreditWatch with negative implications.  At the same time, the
rating on class B-2 from series 2004-1 was lowered to 'D' from
'CCC'.  

In addition, the ratings on class B-2 from series 2004-2 and class
B-4 from series 2005-7 were lowered to 'CCC' from 'B' and removed
from CreditWatch, where they were placed with negative
implications on Oct. 18, 2006, and Jan. 18, 2007, respectively.

Moreover, various ratings from series 2005-WM2, 2005-WM3, 2005-8,
2006-1, 2006-2, 2006-3, 2006-4, 2006-5, 2006-6, 2006-7, and 2006-8
were placed on CreditWatch negative.  Lastly, the ratings on the
remaining classes from various SACO I Trust series were affirmed.
     
The upgrades of class B-2 from series 2004-1 and classes M-1 and
M-2 from series 2004-2 reflect a significant increase in credit
support due to the paydown of the senior classes and the shifting
interest feature of the transactions.  Before these transactions
reach their step-down dates, the most senior classes outstanding
will continue to receive all principal payments.  After the step-
down date, the deals will likely continue to pay down sequentially
because of failed cumulative loss and delinquency triggers.  As of
the March 2007 remittance period, cumulative losses for series
2004-1 were 3.42% of the original pool balance, and cumulative
losses for series 2004-2 were 3.78% of the original pool balance,
both significantly higher than the trigger threshold of 1.75%
(Before the deal reaches 48 months of seasoning, the threshold is
1.75%; from months 48 to 60, the threshold is 2.25%; from months
60 to 72, the threshold is 2.75%; and after the 72nd month, the
threshold remains 4.5%).  The shifting interest feature of the
transactions will increase the credit support percentages for
these upgraded classes.  Current credit support for the classes
with raised ratings has increased to an average of 2.72x, the
level required for the higher rating.
     
The downgrades and negative CreditWatch placements reflect the
deteriorating collateral performance of these transactions.  
Credit support for these deals is derived from a combination of
subordination, excess interest, and overcollateralization (O/C).
Realized losses have been outpacing excess interest spread to an
extent that has reduced credit enhancement to levels that are not
sufficient to support the previous ratings on the downgraded
classes.  The rating on class B-2 from series 2004-1 was lowered
to 'D' from 'CCC' because of principal write-downs in the past
three distribution periods.  For the 16 pools with negative rating
actions, series 2004-1, 2004-2, 2005-7, 2005-8, 2005-WM2, 2005-
WM3, 2006-1, 2006-2 (groups 1 and 2), 2006-3, 2006-4, 2006-5
(groups 1 and 2), 2006-6, 2006-7, and 2006-8, cumulative losses
ranged from 0.11% (2006-8) to 6.23% (2005-WM3) of the original
pool balances.  Severe delinquencies (90-plus days, foreclosure,
and REO) ranged from 2.91% (2006-8) to 8.76% (2006-5, group 2) of
the current pool balances.  Total delinquencies ranged from 6.63%
(2006-8) to 15.53% (2005-WM2) of the current pool balances.  All
of these deals contain primarily second-lien loans as collateral.
     
The ratings on class B-2 from series 2004-2 and class B-4 from
series 2005-7 were removed from CreditWatch because they were
lowered to 'CCC'.  According to Standard & Poor's surveillance
practices, ratings lower than 'B-' on classes of certificates or
notes from RMBS transactions are not eligible to be on CreditWatch
negative.
     
The affirmations are based on credit support percentages that are
sufficient to maintain the current ratings.  These transactions
were initially backed by either subprime/Alt-A closed-end second-
lien mortgage loans or home equity lines of credit.  The
guidelines used in the origination process generally employed
standards intended to assess the credit risk of borrowers with
imperfect credit histories or relatively high ratios of monthly
mortgage payments to income.
    
                         Ratings Raised
    
                          SACO I Trust
                             Rating
                               ------
             Series      Class      To      From
             ------      -----      --      ----     
             2004-1       B-1       A       BBB
             2004-2       M-1       AAA     AA
             2004-2       M-2       AA      A
    
       Ratings Lowered and Placed on Creditwatch Negative
   
                          SACO I Trust
                             Rating
                             ------
          Series      Class     To             From
          ------      ------    --             -----
          2005-WM2     B-4      B/Watch Neg      BB
          2005-WM3     B-4      B/Watch Neg      BB
          2005-8       B-4      B/Watch Neg      BB
   
                        
                        Rating Lowered
    
                         SACO I Trust
                            Rating
                            ------
                 Series     Class     To    From
                 ------     -----     --    ----
                 2004-1      B-2      D     CCC
    
      Rating Lowered and Removed from Creditwatch Negative
    
                          SACO I Trust
                             Rating
                             ------
            Series     Class      To       From
            ------     -----      --       ----
            2004-2      B-2       CCC    B/Watch Neg
            2005-7      B-4       CCC    B/Watch Neg

             Ratings Placed on Creditwatch Negative
      
                           SACO I Trust
                              Rating
                              ------
        Series      Class            To           From
        ------      -----            --           ----
        2005-WM2    B-3        BBB-/Watch Neg     BBB-
        2005-WM3    B-3        BBB-/Watch Neg     BBB-
        2006-1      M-4        BBB/Watch Neg      BBB
        2006-2      I-B-4      BB+/Watch Neg      BB+
        2006-2      II-B-3     BBB-/Watch Neg     BBB-
        2006-2      II-B-4     BB+/Watch Neg      BB+
        2006-3      B-3        BBB-/Watch Neg     BBB-
        2006-3      B-4        BB+/Watch Neg      BB+
        2006-4      B-3        BBB-/Watch Neg     BBB-
        2006-4      B-4        BB+/Watch Neg      BB+
        2006-5      I-B-3      BBB-/Watch Neg     BBB-
        2006-5      I-B-4      BB+/Watch Neg      BB+
        2006-5      II-B-4     BB+/Watch Neg      BB+
        2006-6      B-3        BBB-/Watch Neg     BBB-
        2006-6      B-4        BB+/Watch Neg      BB+
        2006-7      B-3        BBB-/Watch Neg     BBB-
        2006-7      B-4        BB+/Watch Neg      BB+
        2006-8      B          BB/Watch Neg       BB
   
                       Ratings Affirmed
     
                         SACO I Trust
          Series        Class                 Rating
          ------        -----                 ------
          2004-1        A-IO                   AAA
          2004-1        M-2                    AAA
          2004-2        A-1, A-2, A-3          AAA
          2004-2        B-1                    BBB
          2005-5        I-A                    AAA
          2005-5        I-M-1                  AA
          2005-5        I-M-2                  AA-
          2005-5        I-M-3                  A+
          2005-5        I-M-4                  A
          2005-5        I-M-5                  A-
          2005-5        I-B-1                  BBB+
          2005-5        I-B-2                  BBB
          2005-5        I-B-3                  BBB-
          2005-5        I-B-4                  BB
          2005-7        A                      AAA
          2005-7        M-1                    AA
          2005-7        M-2                    AA-
          2005-7        M-3                    A+
          2005-7        M-4                    A
          2005-7        M-5                    A-
          2005-7        B-1                    BBB+
          2005-7        B-2                    BBB
          2005-7        B-3                    BBB-
          2005-8        A-1, A-2, A-3          AAA
          2005-8        M-1                    AA
          2005-8        M-2                    AA-
          2005-8        M-3                    A+
          2005-8        M-4                    A
          2005-8        M-5                    A-
          2005-8        B-1                    BBB+
          2005-8        B-2                    BBB
          2005-8        B-3                    BBB-
          2005-9        A-1, A-2, A-3          AAA
          2005-9        M-1                    AA+
          2005-9        M-2                    AA
          2005-9        M-3                    AA-
          2005-9        M-4                    A+
          2005-9        M-5                    A
          2005-9        M-6                    A-
          2005-9        B-1                    BBB+
          2005-9        B-2                    BBB
          2005-9        B-3                    BBB-
          2005-9        B-4                    BB+
          2005-10       I-A                    AAA
          2005-10       I-M                    A-
          2005-10       I-B-1                  BBB+
          2005-10       I-B-2                  BBB
          2005-10       I-B-3                  BBB-
          2005-10       I-B-4                  BB+
          2005-10       II-A-1, II-A-2, II-A-3 AAA
          2005-10       II-M-1                 AA+
          2005-10       II-M-2                 AA
          2005-10       II-M-3                 AA-
          2005-10       II-M-4                 A+
          2005-10       II-M-5                 A
          2005-10       II-M-6                 A-
          2005-10       II-B-1                 BBB+
          2005-10       II-B-2                 BBB
          2005-10       II-B-3                 BBB-
          2005-10       II-B-4                 BB+
          2005-GP1      A-1, A-2, M-1          AAA
          2005-GP1      M-2                    BBB-
          2005-GP1      B-1                    BB+
          2005-GP1      B-2                    BB
          2005-GP1      B-3                    BB-
          2005-GP1      B-4                    B+
          2005-WM2      A-1, A-2, A-3          AAA
          2005-WM2      M-1                    AA
          2005-WM2      M-2                    AA-
          2005-WM2      M-3                    A+
          2005-WM2      M-4                    A
          2005-WM2      M-5                    A-
          2005-WM2      B-1                    BBB+
          2005-WM2      B-2                    BBB
          2005-WM3      A-1, A-2, A-3          AAA
          2005-WM3      M-1                    AA
          2005-WM3      M-2                    AA-
          2005-WM3      M-3                    A+
          2005-WM3      M-4                    A
          2005-WM3      M-5                    A-
          2005-WM3      B-1                    BBB+
          2005-WM3      B-2                    BBB
          2006-1        A                      AAA
          2006-1        M-1                    A
          2006-1        M-2                    A-
          2006-1        M-3                    BBB+
          2006-2        I-A                    AAA
          2006-2        I-M                    A-
          2006-2        I-B-1                  BBB+
          2006-2        I-B-2                  BBB
          2006-2        I-B-3                  BBB-
          2006-2        II-A                   AAA
          2006-2        II-M                   A-
          2006-2        II-B-1                 BBB+
          2006-2        II-B-2                 BBB
          2006-3        A-1, A-2, A-3          AAA
          2006-3        M-1                    AA+
          2006-3        M-2                    AA
          2006-3        M-3                    AA-
          2006-3        M-4                    A+
          2006-3        M-5                    A
          2006-3        M-6                    A-
          2006-3        B-1                    BBB+
          2006-3        B-2                    BBB
          2006-4        A-1, A-2, A-3          AAA
          2006-4        M-1                    AA+
          2006-4        M-2                    AA
          2006-4        M-3                    AA-
          2006-4        M-4                    A+
          2006-4        M-5                    A
          2006-4        M-6                    A-
          2006-4        B-1                    BBB+
          2006-4        B-2                    BBB
          2006-5        I-A                    AAA
          2006-5        I-M-1                  AA+
          2006-5        I-M-2                  AA
          2006-5        I-M-3                  AA-
          2006-5        I-M-4                  A+
          2006-5        I-M-5                  A
          2006-5        I-M-6                  A-
          2006-5        I-B-1                  BBB+
          2006-5        I-B-2                  BBB
          2006-5        II-A-1, II-A-2, II-A-3 AAA
          2006-5        II-M-1                 AA+
          2006-5        II-M-2                 AA
          2006-5        II-M-3                 AA-
          2006-5        II-M-4                 A+
          2006-5        II-M-5                 A
          2006-5        II-M-6                 A-
          2006-5        II-B-1                 BBB+
          2006-5        II-B-2                 BBB
          2006-5        II-B-3                 BBB-
          2006-6        A                      AAA
          2006-6        M-1                    AA+
          2006-6        M-2                    AA
          2006-6        M-3                    AA-
          2006-6        M-4                    A+
          2006-6        M-5                    A
          2006-6        M-6                    A-
          2006-6        B-1                    BBB+
          2006-6        B-2                    BBB
          2006-7        A                      AAA
          2006-7        M-1                    AA+
          2006-7        M-2                    AA
          2006-7        M-3                    AA-
          2006-7        M-4                    A+
          2006-7        M-5                    A
          2006-7        M-6                    A-
          2006-7        B-1                    BBB+
          2006-7        B-2                    BBB
          2006-8        A, A-IO                AAA
          2006-9        A                      AAA
          2006-9        M-1                    AA+
          2006-9        M-2                    AA
          2006-9        M-3                    AA-
          2006-9        M-4                    A+
          2006-9        M-5                    A
          2006-9        M-6                    A-
          2006-9        B-1                    BBB+
          2006-9        B-2                    BBB
          2006-9        B-3                    BBB-
          2006-9        B-4                    BB+
          2006-10       A                      AAA
          2006-10       M-1                    AA+
          2006-10       M-2                    AA
          2006-10       M-3                    AA-
          2006-10       M-4                    A+
          2006-10       M-5                    A
          2006-10       M-6                    A-
          2006-10       B-1                    BBB+
          2006-10       B-2                    BBB
          2006-10       B-3                    BBB-
          2006-10       B-4                    BB+


SAMHO TOUR: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Samho Tour, Inc.
        dba Samho Travel
        3030 West Olympic Boulevard, Suite 104
        Los Angeles, CA 90006
        Tel: (310) 277-7400

Bankruptcy Case No.: 07-12691

Type of Business: The Debtor is tour operator and promoter.

Chapter 11 Petition Date: April 3, 2007

Court: Central District Of California (Los Angeles)

Judge: Thomas B. Donovan

Debtor's Counsel: Lawrence A. Diamant, Esq.
                  1888 Century Park East, Suite 1500
                  Los Angeles, CA 90067-1702
                  Tel: (310) 277-7400
                  Fax: (310) 277-7584

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
American Express                 trade                 $100,000
P.O. Box 297612
Fort Lauderdale, FL 33329-7812

Dong Bu Tour                     trade                  $70,000
150-24 Northern Boulevard,
Suite A3 & A4
Flushing, NY 11354

Charming Holidays                trade                  $40,000
3360 Flair Drive,
Suite 102
El Monte, CA 91731

J.J.J. Sales & Repair            trade                  $30,000

Holiday Inn                      trade                  $10,000

J.J. Grand Hotel                 trade                  $10,000

PRO Air International, Inc.      trade                  $10,000

Garden Suite Hotel               trade                   $8,000

Edgewater Hotel                  trade                   $5,000

Riviera Hotel                    trade                   $5,000

Oxford Palace Hotel              trade                   $5,000

Hebaragi & Lemi Business         trade                   $5,000

B.F.I. Bangee Fleet, Inc.        trade                   $3,000

Four Season Travel               trade                   $2,000

G.T.T.                           trade                   $2,000

Vango Bus                        trade                   $1,500

Sundiago Charter                 trade                   $1,000

Luxury Bus                       trade                   $1,000

Holiday Motor Coach              trade                   $1,000

Golden Lion                      trade                   $1,000


SANDRA ROTHMAN: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Sandra Rothman S.L.P., P.C.
        dba Rothman Therapeutic Services
        97-77 Queens Boulevard, 4th Floor
        Rego Park, NY 11374

Bankruptcy Case No.: 07-71129

Type of Business: The Debtor is a speech pathologist.  She owns
                  Rothman Therapeutic Services.  See
                  http://rothmantherapy.com/Home.htm

Chapter 11 Petition Date: April 2, 2007

Court: Eastern District of New York (Central Islip)

Debtor's Counsel: Anthony F. Giuliano, Esq.
                  Pryor & Mandelup, L.L.P.
                  675 Old Country Road
                  Westbury, NY 11590
                  Tel: (516) 997-0999
                  Fax: (516) 333-7333

Estimated Assets: Less than $10,000

Estimated Debts:  $1 Million to $100 Million

The Debtor did file a list of its largest unsecured creditors.


SGP ACQUISITION: Plan Confirmation Hearing Set for April 11
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware set a
hearing on April 11, 2007, at 10:00 a.m., to consider confirmation
of the Amended Plan filed by SGP Acquisition LLC, Kimolos II LP,
and the Official Committee of Unsecured Creditors.

Kimolos a non-debtor affiliate of SGP Acquisition.

The Proponents tells the Court that the funds to be used to
implement the Plan will be obtained from the Debtor's assets,
which includes the Dunlop Settlement Proceeds and cash on hand
the effective date, and funds to be contributed by Kimolos.

Under the Amended Plan, Administrative Claims and Priority Tax
Claims will be paid in full on the effective date.

Holder of General Unsecured Claims will receive a pro rata share
of the Debtor's available assets after all prior claims have been
paid in full.

Equity Interest holders will not receive nor retain any property
and these interests will be cancelled.

Headquartered in Greenville, South Carolina, SGP Acquisition, LLC
-- http://www.slazengergolf.com/-- markets a wide array of    
premium golf apparel, golf balls, and related accessories.  The
Company filed for chapter 11 protection on November 30, 2004
(Bankr. D. Del. Case No. 04-13382).  Laurie Polleck, Esq., at
Jaspan Schlesinger Hoffman, and Mark A. Philip, Esq., at Benesch
Friedlander Coplan & Aronoff, represent the Debtor.  Francis A.
Monaco, Jr., Esq., Joseph J. Bodnar, Esq., and Kevin J. Mangan,
Esq., at Monzack and Monaco, P.A., represent the Official
Committee of Unsecured Creditors.  James M. Lawniczak, Esq., at
Calfee Halter & Griswold LLP, represents Kimolos.  When the Debtor
filed for protection from its creditors, it listed estimated
assets and debts of $10 million to $50 million.


SOLO CUP: Posts $373.2 Million Net Loss in Year Ended Dec. 31
-------------------------------------------------------------
Solo Cup Company reported a net loss of $373.2 million on net
sales of $2,489.9 million for the year ended Dec. 31, 2006,
compared with a net loss of $19.4 million on net sales of
$2,431.6 million for the year ended Jan. 1, 2006.

The increase in net sales reflects an increase in average realized
sales price, partially offset by lower sales volumes.  The
increase in average realized sales price reflects price increases
implemented over the past year in response to higher raw material
costs for resin and paper. The volume decrease reflects general
industry trends and shifts in the company's product mix as well as
the effects of competitive pressure in the marketplace.

Gross profit was $265.1 million for the fiscal year ended
Dec. 31, 2006, a decrease of $44.1 million from the comparable
period in 2005.  This decrease primarily reflects the company's
inability to fully recover raw material costs and higher energy
and transportation costs.

Selling, general and administrative expenses were $265.9 million
for the fiscal year ended Dec. 31, 2006, versus $267.3 million for
the fiscal year ended Jan. 1, 2006. This modest decrease is a
result of lower integration expenses partially offset by increases
in various professional expenses related to the new order
management system, the development and implementation of the
company's Performance Improvement Program, and the accounting
restatement and related bank amendment process.

Depreciation and amortization expense was $100.8 million, net
interest expense was $90.7 million and capital expenditures were
$65.1 million for the fiscal year ended Dec. 31, 2006.

Commenting on the company's fiscal year 2006 results, Robert M.
Korzenski, chief executive officer, said: ""Our results were
impacted by a continued challenging industry environment and
increased raw material costs as well as certain customer and
product mix issues.  However, we have taken steps to improve our
manufacturing and supply chain efficiencies, decrease our selling,
general and administrative expenses, reduce our debt burden, and
optimize our sales and marketing organization.  We have also
launched an integrated Performance Improvement Program designed to
address all key value drivers, accelerate our turnaround, leverage
our strengths, and achieve meaningful and sustainable improvements
in our results.  Through these efforts, coupled with the
significant recent additions to our senior management team, we
expect to better position the company to meet our competitive
challenges, improve our operational and financial performance,
and create value for our investors in 2007 and beyond."

In December 2006, the company entered into amendments to its first
and second lien facilities which increased its borrowing capacity
by $50 million, from $80 million to $130 million, under the
term loan of its second lien facility, and which modified the
financial covenants the company is required to meet.

At Dec. 31, 2006, the company's balance sheet showed
$1,542.4 million in total assets, $1,528.8 million in total
liabilities, and $13.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cbe

                      About Solo Cup Company

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

                          *     *     *

As reported in the Troubled Company Reporter on Mar. 13, 2007,
Moody's Investors Service affirmed the 'B3' Corporate Family
Rating of Solo Cup Company and revised the rating outlook to
negative.


SPECTRUM SIGNAL: Gets Going Concern Qualification from KPMG LLP
---------------------------------------------------------------
Spectrum Signal Processing Inc. disclosed that its Annual Report
on Form 20-F for the fiscal year ended Dec. 31, 2006, contain a
going concern qualification from its independent accounting firm,
KPMG LLP.

As of Dec. 31, 2006, the company had cash and cash equivalents of
$1.7 million and net working capital of $3.5 million.  The company
has an undrawn line of credit facility of up to Cdn$2.9 million.

On Feb. 16, 2007, Spectrum reported the signing of a definitive
agreement with Vecima Networks Inc., under which Vecima will
acquire all the outstanding common shares of Spectrum.  The
transaction with Vecima will be carried out by way of a statutory
plan of arrangement and must be approved by the British Columbia
Supreme Court and by the affirmative vote of the holders of 75%  
of Spectrum's shares.  The transaction is also subject to certain
closing conditions, including the approval of the United States
Department of State and the Committee on Foreign Investments in
the United States well as the receipt of all other required
regulatory approvals and customary closing conditions.   The
transaction is expected to close in April 2007.

This statement is being made in compliance with Nasdaq Marketplace
Rule 4350(b)(1)(B), which requires separate disclosure of receipt
of an audit opinion that contains a going concern qualification.
This statement does not represent any change or amendment to the
company's 2006 financial statements or to its Annual Report
on Form 20-F.

                       About Spectrum Signal

Based in Columbia, Maryland, Spectrum Signal Processing Inc. (TSX:
SSY)(NASDAQ: SSPI) -- http://www.spectrumsignal.com/-- is a   
supplier of software-defined platforms for defense electronics
applications.  The company provides applications engineering
services and modified commercial-off-the-shelf platforms to the US
Government, its allies and its prime contractors.  The company's
products and services are optimized for military communications,
signals intelligence, surveillance, electronic warfare and
satellite communications applications.


SPECTRUM SIGNAL: Restates Financial Results for Two Fiscal Years
----------------------------------------------------------------
Spectrum Signal Processing Inc. restated its financial results for
its fiscal years ended Dec. 31, 2004 and 2005.  This restatement
pertains to U.S. generally accepted accounting principles and does
not impact the company's financial results in accordance with
Canadian GAAP.  These are non-cash charges that do not impact the
company's operations or cash flows.

The restatement results from a recent interpretation by U.S.
regulatory authorities of the U.S. GAAP contained in the Statement
of Financial Accounting Standards 133, Accounting for Derivative
Instruments and Hedging Activities.  The interpretation under U.S.
GAAP requires that, when a company's share purchase warrants have
an exercise price denominated in a currency other than the
company's functional currency, those share purchase warrants be
classified as liabilities at their fair value with any changes in
fair value being included in the calculation of net earnings.  In
these circumstances, the company would record a gain or loss in
each period when the fair value of the share purchase warrants
decreases or increases.

As a result of this interpretation, the company will include a
restatement of comparative figures in its U.S. GAAP financial
statements for the year ended Dec. 31, 2006.

The effect of the restatement is an increase to the company's 2004
net loss of $1.5 million and a decrease to the company's 2005 net
loss of $792,000.  For the year ended Dec. 31, 2006, the company
will also include a gain of $27,000 related to the change in fair
value of Canadian dollar denominated share purchase warrants
during the period.  As of Dec. 31, 2006 all but 207,931 of the
Canadian dollar denominated share purchase warrants have been
exercised or have expired.  The remaining outstanding share
purchase warrants have an estimated fair market value of $11,000,
as calculated using the Black-Scholes option-pricing model, and
are recorded as a current liability on the company's balance
sheet.  If the share purchase warrants are exercised, the fair
value of the warrants at the date of exercise will be reclassified
to stockholders' equity.  As of Dec. 31, 2006, the cumulative
effect of the issuance and exercise of the Canadian dollar
denominated share purchase warrants is an increase to share
capital, warrants and additional paid-in capital of $653,000.

"This restatement relates to non-cash charges that do not impact
Spectrum's operations or cash flows," Brent Flichel, Spectrum's
president and chief executive officer stated.  "The U.S.
regulatory authorities have provided their interpretation of some
complex accounting rules affecting the company's reported
financial results.  In the company's effort to provide transparent
financial reporting, the company is providing this restatement
information to the markets."

                       About Spectrum Signal

Based in Columbia, Maryland, Spectrum Signal Processing Inc. (TSX:
SSY)(NASDAQ: SSPI) -- http://www.spectrumsignal.com/-- is a   
supplier of software-defined platforms for defense electronics
applications.  The company provides applications engineering
services and modified commercial-off-the-shelf platforms to the US
Government, its allies and its prime contractors.  The company's
products and services are optimized for military communications,
signals intelligence, surveillance, electronic warfare and
satellite communications applications.


SYNIVERSE TECH: Increased Debt Cues Moody's Negative Outlook
------------------------------------------------------------
Moody's Investors Service changed Syniverse Technologies, Inc.'s
outlook from stable to negative and affirmed the company's Ba3
corporate family rating.  

The company recently reported the debt financed acquisition of
Billing Services Group's wireless data and financial clearing and
settlement businesses for $290 million.  

The change in outlook reflects the increase in debt at time when
Syniverse's core product offerings are experiencing pricing
pressures and moderate declines in operating profit.  Although the
acquisition will likely bring synergies and growth to
international operations, the increased leverage reduces
flexibility as the company faces declines in its North American
business.  The outlook also reflects the expectation of continued
debt financed acquisitions.

Moody's views the BSG acquisition as providing a welcome
diversification of revenues as well as elevating Syniverse into
the number two position in the European GSM business.  BSG will
also bring a financial clearinghouse capability which is viewed as
critical towards providing a unified open connectivity GSM
offering.

Moody's estimates that debt to EBITDA will increase from 2.6x to
4.0x pro forma for the acquisition.  Moody's also estimates that
2006 free cash flow to debt falls from 23.6% to 13.5% pro forma
for the acquisition due to the increased interest expense
associated with the acquisition debt.  Moody's has previously
indicated that once the level falls below 15%, there could be
downward ratings pressure.

The Ba3 ratings reflect the company's leading market positions in
the network and interoperability services businesses supporting
the wireless telecommunication industry and strong cash flow
generating capabilities.  The ratings are constrained by the
company's concentration of revenue derived from roaming traffic
between domestic wireless operators and the pressures arising as
the operators consolidate.

Ratings for debt facilities will be determined after the company
finalizes the capital structure.  Moody's notes that committed
financing has been provided by Lehman Brothers, Deutsche Bank and
Bear, Stearns & Co.  Individual debt instrument ratings could be
downgraded depending on the final structure.

The ratings could be downgraded if operating profits in the
existing business continue to decline at a rate faster than the
profits at the new business grow or if the company were to make
additional large debt financed acquisitions.  Alternately the
outlook could be stabilized if the company is able to grow cash
flows and increase free cash flow to debt to above 15% pro forma
for the acquisition.

Based in Tampa, Florida, Syniverse Technologies is a provider of
technology outsourcing to wireless telecommunications carriers
with 2006 revenues of $337 million.


TABS 2007-7: Moody's Rates $32.5 Million Secured Notes at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned ratings to notes issued by TABS
2007-7, Ltd.:

   * Aaa to the $65,550,000 Class X Senior Secured Fixed Rate
     Notes Due 2013;

   * Aaa to the $1,310,000,0001 Class A1S Variable Funding Senior
     Secured Floating Rate Notes Due 2047;

   * Aaa to the $352,500,000 Class A1J Senior Secured Floating
     Rate Notes Due 2047;

   * Aa2 to the $240,000,000 Class A2 Senior Secured Floating Rate
     Notes Due 2047;

   * A2 to the $80,000,000 Class A3 Secured Deferrable Interest
     Floating Rate Notes Due 2047;

   * Baa1 to the $20,000,000 Class B1 Mezzanine Secured Deferrable
     Interest Floating Rate Notes Due 2047;

   * Baa2 to the $77,500,000 Class B2 Mezzanine Secured Deferrable
     Interest Floating Rate Notes Due 2047;

   * Baa3 to the $47,500,000 Class B3 Mezzanine Secured Deferrable
     Interest Floating Rate Notes Due 2047 and

   * Ba2 to the $32,500,000 Class C Mezzanine Secured Deferrable
     Interest Floating Rate Notes Due 2047.

The Moody's ratings of the notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.

The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting of RMBS Securities, CMBS
Securities, other Asset-Backed Securities and Synthetic Securities
due to defaults, the transaction's legal structure and the
characteristics of the underlying assets.

Tricadia CDO Management, LLC will manage the selection,
acquisition and disposition of collateral on behalf of the Issuer.


TAHOMA CDO: Moody's Rates $5 Million Class E Senior Notes at Ba1
----------------------------------------------------------------
Moody's Investors Service assigned ratings to notes issued by
Tahoma CDO II, Ltd.:

   * Aaa to $300,000,000 Class A-1 Senior Secured Floating Rate
     Notes due 2047;

   * Aaa to $120,000,000 Class A-2 Senior Secured Floating Rate
     Notes due 2047;

   * Aa2 to $25,500,000 Class B Senior Secured Floating Rate Notes    
     due 2047;

   * A2 to $23,000,000 Class C Senior Secured Deferrable Floating
     Rate Notes due 2047;

   * Baa2 to $11,500,000 Class D Senior Secured Deferrable
     Floating Rate Notes due 2047 and

   * Ba1 to $5,000,000 Class E Senior Secured Deferrable Floating
     Rate Notes due 2047.

Moody's ratings of the notes address the ultimate cash receipt of
all required interest and principal payments, as provided by the
notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.  The ratings are also based upon
the transaction's legal structure and the characteristics of the
collateral pool.

Bear Stearns Asset Management Inc. will manage the selection,
acquisition and disposition of collateral on behalf of the Issuer.


TARGETED GENETICS: Ernst & Young Raises Going Concern Doubt
-----------------------------------------------------------
Ernst & Young LLP raised substantial doubt about the ability of
Targeted Genetics Corporation to continue as a going concern after
auditing the company's financial statements for the years ended
Dec. 31, 2006, and 2005.  The auditing firm pointed to the
company's recurring losses and negative cash flows from operations
due to its limited working capital.

Net loss incurred for the year ended Dec. 31, 2006, was
$34 million, as compared with a net loss of $19.2 million for the
year ended Dec. 31, 2005.  The company generated total revenues
totaling $9.9 million in 2006, consisted of $8.1 million in
collaborative revenues and $1.8 million in licensing revenues.  
Total revenues in 2005 totaled $6.9 million, which is solely from
collaborative revenues.

Operating expenses increased to $46.6 million in 2006, as compared
with $26.2 million in 2005, due to a goodwill impairment charge of
$23.7 million recorded in 2006.  There was no goodwill impairment
charge recorded in the prior year.

As of Dec. 31, 2006, the company had total assets of $17.5 million
and total liabilities of $12.1 million, resulting to total
stockholders' equity of $5.4 million.  It had cash and cash
equivalents balances of $6.2 million at Dec. 31, 2006, as compared
with $14.1 million at Dec. 31, 2005, and $34.1 million at Dec. 31,
2004.

Accumulated deficit in 2006 increased to $284 million from $250
million in the prior year.  The company expects to generate
substantial additional losses for the foreseeable future,
primarily due to the costs associated with funding its
inflammatory arthritis clinical development program, developing
and maintaining its manufacturing capabilities and developing its
intellectual property assets.

On Jan. 11, 2007, the company sold 2.2 million shares of its
common stock in a private placement at a price of $4.00 per share
and received net proceeds of about $8.1 million.  In addition, in
connection with the financing the company issued warrants to
purchase up to 763,000 shares of its common stock.

               Goodwill and Other Intangible Assets

When the company purchased Genovo in 2000, it recorded intangible
assets of $39.5 million on its financial statements, which
represented know-how, an assembled workforce and goodwill.  
Between 2000 and 2002, the company recognized $8.1 million of
amortization of the goodwill and intangible assets.  In 2002, the
company implemented SFAS No. 142, "Goodwill and Other Intangible
Assets."  The company engaged an independent valuation firm to
assist with the evaluation, including the assessment of its
estimated fair value and the hypothetical purchase price
allocations.  

The company periodically and annually on October 1st evaluate the
carrying value of its goodwill in accordance with SFAS No. 142.  
It recognized a non-cash loss on impairment of goodwill during
second quarter of 2006.  As a result of a decline in its share
price during June 2006, to a level, which reduced market
capitalization to an amount less than the fair value of the
company's net assets, it was required to perform an interim
goodwill impairment test.  As a result of this evaluation, the
company recognized a non-cash impairment charge of $23.7 million,
which is equal to the recorded value of goodwill in excess of its
implied value.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cb3

                     About Targeted Genetics

Targeted Genetics Corporation (NasdaqCM: TGEN) in Seattle --
http://www.targen.com/-- is a clinical-stage biotechnology  
company.  It develops and intends to commercialize a new class of
therapeutic products called gene therapeutics.


TECH DATA: Earns $36.1 Million in Quarter Ended December 31
-----------------------------------------------------------
Tech Data Corp. reported net income of $36.1 million for the
fourth quarter ended Jan. 31, 2007, compared with net income of  
$29.5 million for the prior-year period, which includes income
from discontinued operations of $1 million.

Results for the fourth quarter ended Jan. 31, 2006, also included
$6.8 million of restructuring charges and $4.4 million of
consulting costs related to the company's European restructuring
program.  Excluding these charges and costs, non-GAAP net income
for the fourth quarter of fiscal 2006 totaled $41.2 million,
including $1 million in income from discontinued operations.  

Net sales for the fourth quarter ended Jan. 31, 2007, were
$6.1 billion, an increase of 10.7% from net sales of $5.5 billion
in the fourth quarter of fiscal 2006 and an increase of 12.7%
compared to the third quarter of the current fiscal year.

"We completed fiscal 2007 on a very positive note achieving record
sales for the quarter and for the full year," commented Robert M.
Dutkowsky, Tech Data's chief executive officer.  "Our performance
in Europe exceeded our expectations - the result of better-than-
expected sales volume and a strengthening of the gross margin as
we continue to drive improvements and stabilize our European
operations.  Our Canadian and Latin American operations performed
exceptionally well, contributing to the America's solid fourth
quarter performance.  I'm very proud of the Tech Data team, and
want to thank each and every one of them for their contributions
this year.  As we move forward in the new fiscal year, we will
continue to leverage our infrastructure, concentrating on
responsible growth in worldwide net sales and measured
improvements in profitability."

                       Fiscal Year Results

Net sales for the fiscal year ended Jan. 31, 2007, were
$21.4 billion, an increase of 4.7 percent from net sales of
$20.5 billion in the fiscal year ended Jan. 31, 2006.  On a
regional basis, net sales in the Americas represented 46 percent
of net sales, and increased 5.3 percent to $9.9 billion from
$9.5 billion in the prior-year period.  Europe represented 54
percent of net sales and increased 4.1 percent to $11.5 billion
from $11 billion in the fiscal year ended Jan. 31, 2006.

Gross margin for the fiscal year ended Jan. 31, 2007, was 4.70
percent, down from 4.99 percent in the prior-year period.  The
decline in gross margin was primarily attributable to challenges
in the European operations, competitive market conditions in both
regions, and to a much lesser extent, changes in customer and
product mix.

For the fiscal year ended Jan. 31, 2007, the company incurred an
operating loss of $4.2 million compared with operating income of
$163.3 million in the prior-year.  The operating loss of
$4.2 million included $136.1 million in goodwill impairment
charges, absent in the previous year.  Due to certain indicators
of impairment within the company's European reporting unit, the
company performed an impairment test for goodwill as of
July 31, 2006.  This testing included the determination of the
European reporting unit's fair value using market multiples and
discounted cash flows modeling.  The company's reduced earnings
and cash flow forecast for the European region resulted in the
company determining that a goodwill impairment charge was
necessary.  

The company incurred a net loss of $97 million for the fiscal year
ended Jan. 31, 2007, compared with net income of $26.6 million in
the prior-year period.  Results of operations for the fiscal-year
periods ended Jan. 31, 2007 and 2006, included $3.9 million and
$3.6 million, respectively, of income from discontinued operations
related to the sale of the Europe training business.  

At Jan. 31, 2007, the company's balance sheet showed $4.7 billion
in total assets, $3 billion in total liabilities, and $1.7 billion
in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Jan. 31, 2007, are available for
free at http://researcharchives.com/t/s?1cbf

                         About Tech Data

Founded in 1974, Tech Data Corporation (NASDAQ GS: TECD) --
http://www.techdata.com/-- is a leading distributor of IT  
products, with more than 90,000 customers in over 100 countries.
The company's business model enables technology solution
providers, manufacturers and publishers to cost-effectively sell
to and support end users ranging from small-to-midsize businesses
to large enterprises.  Tech Data is ranked 107th on the FORTUNE
500(R).

                          *     *     *

As reported in the Troubled Company Reporter on Dec. 19, 2006,
Moody's Investors Service assigned a 'Ba2' rating to Tech Data
Corporation's proposed offering of up to $350 million convertible
senior notes due 2026 and affirmed the company's Ba1 corporate
family rating and Ba1 probability of default rating.


TK ALUMINUM: Unit Launches Tender Offer of EUR35 Mil. Senior Notes
------------------------------------------------------------------
Teksid Aluminum Luxembourg S.a r.l., S.C.A., an indirect
subsidiary of TK Aluminum Ltd., has commenced a tender offer for a
portion of its 11-3/8% Senior Notes due 2011 pursuant to an Offer
to Purchase statement dated March 29, 2007.  The tender offer will
expire at 10:00 a.m., New York City time (3:00 p.m., London time),
on April 27, 2007, unless extended or earlier terminated.

Holders of Senior Notes who validly tender their Senior Notes
prior to 10:00 a.m., New York City time (3:00 p.m., London time),
on the Expiration Date, will receive 100% of the principal amount
of the outstanding Senior Notes, plus accrued and unpaid interest
thereon from the most recent payment of interest preceding the
Payment Date up to, but not including, the Payment Date.  All
payments will be made on May 1, 2007, unless extended.  The
company will not spend more than EUR36,430,778 in the aggregate to
purchase its outstanding Senior Notes at par, which amount
includes the payment of the Purchase Price and Accrued Interest on
the Payment Date.

In the event that the aggregate principal amount of Senior Notes
validly tendered and not validly withdrawn by Holders prior to the
Expiration Date exceeds EUR35,150,000, the company will accept
Senior Notes for payment on a pro rata basis from among such
tendered Senior Notes.  Any such pro rata allocation will be
calculated by multiplying the principal amount of Senior Notes
validly tendered via a tender instruction by a factor equal to the
aggregate principal amount of the Senior Notes that the company is
to purchase divided by the aggregate principal amount of the
Senior Notes validly tendered and not validly withdrawn.

Each offer to sell reduced in this manner will be rounded down to
the nearest denomination of EUR50,000 and integral multiples of
EUR1,000 in excess thereof.  Any tendered Senior Notes not
purchased due to proration will be returned to the Holder thereof
as promptly as practicable after the Payment Date.  There is no
condition that any minimum amount of Senior Notes must be
tendered in the Tender Offer for the Company to accept the Senior
Notes for payment.

Tenders of Senior Notes prior to the Expiration Date may be
validly withdrawn at any time prior to 10:00 a.m., New York City
time (3:00 p.m., London time), on the Expiration Date, but not
thereafter unless the tender offer is terminated without any
Senior Notes being purchased.

The company's obligation to accept for payment and pay for the
Senior Notes validly tendered pursuant to the tender offer is
conditioned upon the satisfaction or waiver of various conditions
described in the Statement.

The trustee under the indenture governing the Senior Notes, has
informed the company that all custodian and beneficial Holders of
Senior Notes hold their Senior Notes through Euroclear or
Clearstream, Luxembourg accounts and that there are no physical
Senior Notes in non-global form.  Accordingly, there are no
letters of transmittal for the tender offer.

Holders may tender their Senior Notes by submitting an election
instruction notice through Euroclear and Clearstream, Luxembourg.  
The company will make letters of transmittal available to any
Holders holding Senior Notes in physical form.  Holders who
believe that they are holding a Senior Note in physical form
should contact the Luxembourg Tender Agent, The Bank of New York
(Luxembourg) S.A., to obtain a letter of transmittal.

                      About Teksid Aluminum

Teksid Aluminum -- http://www.teksidaluminum.com/-- manufactures      
aluminum engine castings for the automotive industry.  Principal
products include cylinder heads, engine blocks, transmission
housings and suspension components.  The company operates 15
manufacturing facilities in Europe, North America, South America
and Asia.  The company maintains operations in Italy, Brazil and
China.

Until Sept. 2002, Teksid Aluminum was a division of Teksid S.p.A.,
which was owned by Fiat.  Through a series of transactions
completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A.
sold its aluminum foundry business to a consortium of investment
funds led by equity investors that include affiliates of each of
Questor Management Company, LLC, JPMorgan Partners, Private Equity
Partners SGR SpA and AIG Global Investment Corp.  As a result of
the sale, Teksid Aluminum is owned by its equity investors through
TK Aluminum Ltd., a Bermuda holding company.

                          *     *     *

On Jan. 16, 2007, Moody's Investors Service placed TK Aluminum
Ltd.'s long-term corporate family rating at Caa3.


TRIMARAN VII: Moody's Rates $12.5 Million Class B-2L Notes at Ba2
-----------------------------------------------------------------
Moody's Investors Service assigned ratings to notes and
combination securities issued by Trimaran VII CLO Ltd.:

   * Aaa to the $333,000,000 Class A-1L Floating Rate Notes due
     June 2021;

   * Aaa to the $25,000,000 Class A-1LR Floating Rate Revolving
     Notes due June 2021;

   * Aa2 to the $35,000,000 Class A-2L Floating Rate Notes due
     June 2021;

   * A2 to the $30,000,000 Class A-3L Floating Rate Notes due June
     2021;

   * Baa2 to the $18,500,000 Class B-1L Floating Rate Notes due
     June 2021; and

   * Ba2 to the $12,500,000 Class B-2L Floating Rate Notes due
     June 2021.

The Moody's ratings of the notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.

Trimaran Advisors LLC will manage the selection, acquisition and
disposition of collateral on behalf of the Issuer.


TUPPERWARE BRANDS: Loan Reduction Prompts S&P to Hold BB Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its recovery ratings on
the senior secured credit facilities of Tupperware Brands Corp. to
'2' from '3', indicating the expectation for substantial (80%-
100%) recovery of principal in the event of a payment default.
     
At the same time, S&P affirmed the corporate credit and loan
ratings at 'BB'.
     
The rating action reflects improved recovery prospects for the
bank lenders following a permanent reduction in the size of
Tupperware's term loan.  During 2006, Tupperware made $75.8
million in principal prepayments.  As a result of the prepayments,
the term loan outstanding balance is $669.2 million and the first
required quarterly payment is now not due until Jan. 2, 2008.  
     
The outlook is stable.  Tupperware had about $680 million of debt
outstanding at Dec. 30, 2006.  

Ratings List

Ratings Affirmed
Tupperware Brands Corp.

Corporate Credit Rating          BB/Stable/--
Senior Secured Local Currency    BB

Ratings Raised
                                  To       From

Senior Secured Recovery Rating   2        3


VANGUARD CAR: Moody's Holds Corporate Family Rating at B1
---------------------------------------------------------
Moody's Investors Service is reviewing the ratings of ERAC USA
Finance Company for possible downgrade following the report that
Enterprise has entered into a definitive agreement to purchase
Vanguard Car Rental Group Inc. and its rated subsidiary - Vanguard
Car Rental USA Holdings, Inc. which operates the "National" and
"Alamo" brands.  The acquisition is subject to regulatory approval
and is expected to be completed during the second half of 2007.
Financial terms of the transaction have not been publicly
disclosed.

Moody's review of ERAC is focusing on the transaction's ultimate
financial terms and legal structure.  Key areas of consideration
will include the amount of debt taken on by Enterprise to fund the
acquisition, and the extent to which the company refinances or
provides supports for Vanguard's existing and future borrowing
requirements.  Moody's review will also assess the operational and
strategic benefits that might result from the acquisition.  These
potential benefits will be balanced against any increased debt
servicing obligations.

Moody's said that the proposed acquisition does not affect the
ratings of Vanguard.  These ratings, which are affirmed, include:

   * corporate family rating, B1
   * probability of default, B1
   * senior secured bank credit facility, Ba3, LGD3, 37%; and
   * speculative grade liquidity, SGL-3.

As a result of change of control language in Vanguard's bank
agreement, it is likely that these obligations will be repaid if
the acquisition is completed.  Should this occur, all of
Vanguard's ratings would be withdrawn.  In the event that some
portion of Vanguard's bank debt remains outstanding, the ratings
would consider the degree of implicit and explicit support
provided by Enterprise for Vanguard's debt.  

Additionally, should no explicit support be provided and
Enterprise not make sufficient financial information regarding
Vanguard available upon which a rating opinion could be based, the
ratings would be withdrawn.

Enterprise Rent-A-Car Company, headquartered in St. Louis,
Missouri, is the leading provider of in-town and insurance
replacement rental cars in US.  ERAC USA Finance Company is a
wholly-owned funding vehicle for Enterprise.

Vanguard Car Rental USA Holdings Inc., headquartered in Tulsa,
Oklahoma, is the third largest general use daily car rental
company in North America and operates under the "National" and
"Alamo" brand names.


VCA ANTECH: Earns $19 Million in Quarter Ended December 31
----------------------------------------------------------
VCA Antech, Inc. reported financial results for the quarter
ended Dec. 31, 2006.

Net income for the quarter ended Dec. 31, 2006 increased 13.4% to
$19.3 million, compared to a net income of $17.0 million for the
quarter ended Dec. 31, 2005.

Revenue increased 11.7% to a quarter record of $242.4 million,
compared to revenue of $216.9 million for the quarter ended
Dec. 31, 2005.

Gross profit for the fourth quarter in 2006 increased 18.6% to
$61.6 million, compared to a gross profit of $51.9 million for the
same period in 2005.

Operating income for the 2006 fourth quarter increased 22.2% to
$40.7 million, compared to an operating income of $33.3 million
for the same quarter in 2005.

The company also reported its financial results for the year
ended Dec. 31, 2006.

Net income for the year ended Dec. 31, 2006 was $105.5 million,
compared to a net income of $67.8 million for the same period in
2005.

Revenue increased 17.1% to a full year record of $983.3 million,
while gross profit increased 19.8% to $270.6 million.

Operating income increased 20.9% to $192.5 million.

"We had an outstanding quarter," Bob Antin, Chairman and CEO,
stated.  "Our consolidated revenue increased 11.7% to $242.4
million and our consolidated margins improved over the comparable
prior year quarter.  Our consolidated gross profit increased 18.6%
and our consolidated gross margin increased to 25.4% compared to
23.9% in the comparable prior year quarter.  In addition, our
consolidated operating income increased 22.2% and our consolidated
operating margin increased to 16.8% compared to 15.3% in the
comparable prior year quarter.

At Dec. 31, 2006, the company's balance sheet showed total assets
of $971,957,000, and total liabilities of $541,652,000, resulting
to a stockholders' equity of $430,305,000.  Equity for the same
period last year was $308,751,000.

VCA Antech Inc. (NASDAQ:WOOF) owns, operates and manages the
largest networks of freestanding veterinary hospitals and
veterinary-exclusive clinical laboratories in the country.  The
Company also supplies ultrasound and digital radiography equipment
to the veterinary industry

                           *     *     *

Moody's Investors Service assigned a Ba3 long-term corporate
family rating to VCA Antech Inc. on May 2004 and a B1 Probability
of Default rating on Sept. 2006.

Standard and Poor's Ratings Services assigned BB- long-term
foreign and local issuer credit ratings on April 2005.


VIKING SYSTEMS: Squar Milner Expresses Going Concern Doubt
----------------------------------------------------------
Squar, Milner, Peterson, Miranda & Willamson LLP raised
substantial doubt about the ability of Viking Systems, Inc. to
continue as a going concern after auditing the company's financial
statements for the year ended Dec. 31, 2006, and 2005.  The
auditing firm pointed to the company's recurring losses from
operations through Dec. 31, 2006, and working capital deficit at
Dec. 31, 2006.

The company incurred a net loss of $8.7 million on net sales of
$5.6 million for the year ended Dec. 31, 2006, as compared with a
net loss of $7.5 million on net sales of $3.8 million for the year
ended Dec. 31, 2005.

As of Dec. 31, 2006, the company's balance sheet showed total
assets of $3.5 million, total current liabilities of $6.7 million,
and capital lease obligations of $77,253, resulting to total
stockholders' deficit of $11.7 million.  The company's December 31
balance sheet also showed strained liquidity with total current
assets of $2.5 million available to pay total current liabilities
of $6.7 million.

The company's accumulated deficit as of Dec. 31, 2006, stood at
$18.5 million, an increase over an accumulated deficit of
$9.8 million as of Dec. 31, 2005.

Since Dec. 31, 2003, Viking System's principal sources of
liquidity were funds from the sale of its equity securities and
the sale of Convertible Notes.  At Dec. 31, 2006, the company had
cash and cash equivalents of $440,465.

                         Convertible Notes

During 2005 Viking Systems entered into a securities purchase
agreement with 23 investors for the issuance of convertible
debentures in the amount of about $5.9 million.  The notes bore
interest at 10%, matured on March 21, 2006, and were convertible
into the company's common stock, at the holders' option, at $0.20
per share.  Proceeds from the issuance of the convertible notes
amounted to about $5.7 million, net of original issue discount of
$105,000 and debt issuance costs of $93,750.  The notes were
subject to certain affirmative and negative covenants and were
secured by substantially all of the company's assets.

In May, 2006 the company issued 8,000 shares of Series B Preferred
stock for gross proceeds of $8 million, and incurred about
$436,143 in issuance costs, which were recorded as a discount to
the carrying value of the Series B Preferred.  Proceeds from the
sale of Series B Preferred consisted of about $7.3 million in cash
and the conversion of $750,000 of convertible notes.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1c92

                       About Viking Systems

Based in La Jolla, California, Viking Systems, Inc. (OTCBB: VKSY)
-- http://www.vikingsystems.com/-- provides 3D endoscopic vision  
systems to hospitals for minimally invasive surgery.  Viking is
leveraging that position to become a market leader in bringing
integrated solutions to the digital surgical environment.  The
company's focus is to deliver integrated information,
visualization and control solutions to the surgical team,
enhancing their capability and performance in MIS and complex
surgical procedures.


WACHOVIA BANK: Moody's Holds Low-B Ratings on 11 Cert. Classes
--------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 27 classes and
downgraded the ratings of five classes of Wachovia Bank Commercial
Mortgage Securities, Inc., Commercial Mortgage Pass-Through
Certificates, Series 2004-C15:

   * Class A-1, $40,503,307, Fixed, affirmed at Aaa
   * Class A-1A, $158,918,574, Fixed, affirmed at Aaa
   * Class A-2, $162,644,000, Fixed, affirmed at Aaa
   * Class A-3, $150,227,000, Fixed, affirmed at Aaa
   * Class A-4, $459,608,000, Fixed, affirmed at Aaa
   * Class X-C, Notional, affirmed at Aaa
   * Class X-P, Notional, affirmed at Aaa
   * Class B, $33,205,000, Fixed, affirmed at Aa2
   * Class C, $14,438,000, Fixed, affirmed at Aa3
   * Class D, $21,656,000, WAC Cap, affirmed at A2
   * Class E, $11,549,000, WAC Cap, affirmed at A3
   * Class F, $14,438,000, WAC Cap, affirmed at Baa1
   * Class G, $12,993,000, WAC Cap, affirmed at Baa2
   * Class H, $15,881,000, WAC, affirmed at Baa3
   * Class J, $7,219,000, WAC Cap, affirmed at Ba1
   * Class K, $4,331,000, WAC Cap, affirmed at Ba2
   * Class L, $4,331,000, WAC Cap, affirmed at Ba3
   * Class M, $2,888,000, WAC Cap, affirmed at B1
   * Class N, $2,887,000, WAC Cap, affirmed at B2
   * Class O, $2,887,000, WAC Cap, affirmed at B3
   * Class 175WJ-A, $16,000,000, Fixed, downgraded to Ba2 from Ba1
   * Class 175WJ-B, $12,700,000, Fixed, downgraded to Ba3 from Ba2
   * Class 175WJ-C, $6,300,000, Fixed, downgraded to B1 from Ba3
   * Class 175WJ-D, $9,500,000, Fixed, downgraded to B2 from B1
   * Class 175WJ-E, $10,500,000, Fixed, downgraded to B3 from B2
   * Class 180ML-A $9,700,000, Fixed, affirmed at Baa2
   * Class 180ML-B, $7,400,000, Fixed, affirmed at Baa3
   * Class 180ML-C $12,350,000, Fixed, affirmed at Ba1
   * Class 180ML-D, $15,000,000, Fixed, affirmed at Ba2
   * Class 180ML-E $8,000,000, Fixed, affirmed at Ba3
   * Class 180ML-F, $7,550,000, Fixed, affirmed at B1
   * Class 180ML-G, $9,500,000, Fixed, affirmed at B2

As of the March 16, 2007, distribution date, the transaction's
aggregate certificate balance has decreased by approximately 1.4%
to $1.26 billion from $1.28 billion at securitization.  The
Certificates are collateralized by 87 mortgage loans ranging in
size from less than 1.0% to 9.9% of the pool, with the top 10
loans representing 51.1% of the pool.  The pool includes three
shadow rated loans representing 26.4% of the pool.  One loan,
representing 2.0% of the pool, has defeased and is secured by U.S.
Government securities.

There have been no losses since securitization and currently there
are no loans in special servicing.  Fourteen loans, representing
12.1% of the pool, are on the master servicer's watchlist.  
Moody's was provided with full-year 2005 and partial-year 2006
operating results for approximately 92.5% and 78.2%, respectively,
of the pool.  Moody's loan to value ratio for the conduit
component is 97.0%, essentially the same as at securitization.
Moody's is downgrading Classes 175WJ-A, 175WJ-B, 175WJ-C, 175WJ-D
and 175WJ-E due to the poorer performance of the 175 West Jackson
Loan, as discussed below.

The largest shadow rated loan is the 175 West Jackson Loan at
$112.5 million (9.9%), which represents a 50.0% participation
interest in a $225.0 million first mortgage loan.  The loan is
secured by 1.5 million square foot Class A office building located
in the Chicago CBD.  The building is also encumbered by a
$55.0 million B Note, which serves as collateral for non-pooled
Classes 175WJ-A, 175WJ-B, 175WJ-C, 175WJ-D and 175WJ-E.  The
building is one of Chicago's largest buildings, with floor plates
that average over 65,000 square feet.  As of November 2006 the
property was 96.0% leased, compared to 90.0% at securitization.
Financial performance has declined since securitization due to
decreased rental revenue and increased operating expenses, most
specifically real estate taxes.  The loan is structured with an
initial 3-year interest only period.  Moody's current shadow
rating of the A and B notes are Ba1 and B3, respectively, compared
to Baa3 and B2 at securitization.

The second shadow rated loan is the Coastal Grand Mall Loan at
$94.9 million (8.4%), which is secured by the borrower's interest
in a 882,700 square foot regional mall located in Myrtle Beach,
South Carolina.  The property is anchored by Dillard's, Sears and
Belk, all of which own their own improvements.  As of September
2006 the in-line space was 98.0% occupied, compared to 90.2% at
securitization.  The loan amortizes on a 25-year schedule and has
amortized by approximately 4.8% since securitization.  The loan
sponsor is CBL & Associates Properties, a publicly traded REIT.
Moody's current shadow rating is Baa1, compared to Baa2 at
securitization.

The third shadow rated loan is the 180 Maiden Lane Loan at
$93.0 million (8.2%), which represents a 50.0% interest in a
$186.0 million first mortgage loan.  The loan is secured by a
1.1 million square foot Class A office building located in the
Financial District of New York City.  The property is 100.0%
occupied, the same as at securitization and is anchored by Goldman
Sachs Group, Inc.  The property is also encumbered by a
$69.5 million B Note which serves as collateral for non-pooled
Classes 180ML-A, 180ML-B, 180ML-C, 180ML-D, 180ML-E, 180ML-F and
180ML-G.  The loan is interest only for its entire 62-month term.
Moody's current shadow rating for the A and B notes are Baa1 and
B2, respectively, the same as at securitization.

The top three conduit exposures represent 14.9% of the outstanding
pool balance.  The largest conduit exposure is the Gale Portfolio
Loan at $72.5 million (6.4%), which is secured by four suburban
office properties located in Northern New Jersey.  The portfolio
totals 574,000 square feet.  Occupancy is 90.0%, compared to 95.8%
at securitization.  The loan sponsors are The Gale Company LLC and
SL Green Realty Corporation.  The loan is structured with an
initial 2-year interest only period.  Moody's LTV is 102.3%,
essentially the same as at securitization.

The second largest conduit exposure is the Deer Valley Village
Apartments Loan at $51.2 million (4.5%), which is secured by an
832-unit multifamily property located in Phoenix, Arizona.  As of
January 2006 the property was 94.0% occupied, essentially the same
as at securitization.  Performance has been impacted by increased
expenses.  The loan is interest only for its entire five-year
term.  Moody's LTV is 106.7%, compared to 103.8% at
securitization.

The third largest conduit exposure is the IRS Fresno Loan at
$46.0 million (4.0%), which is secured by a 180,000 square foot
Class A office building located in Fresno, California.  The
property is 100.0% leased to the Internal Revenue Service under a
lease expiring in November 2018.  The loan is structured as
interest only for its entire five-year term.  Moody's LTV is
91.0%, the same as at securitization.

The pool's collateral is a mix of office (45.7%), retail (27.5%),
multifamily (21.0%), lodging (2.1%), U.S. Government securities
(2.0%), industrial and self storage (1.5%) and land (0.2%).  The
collateral properties are located in 27 states and Washington,
D.C.  The highest state concentrations are New Jersey (13.8%),
Illinois (10.8%), California (10.3%), New York (9.7%) and South
Carolina (8.5%).  All of the loans are fixed rate.


WACHOVIA BANK: Moody's Holds Low-B Ratings on Class K & RC Certs.
-----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Wachovia Bank
Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2004-WHALE 4:

   -- Class X-1, Notional, affirmed at Aaa
   -- Class J, $33,960,750, affirmed at Baa2
   -- Class K, $31,608,000, affirmed at Ba2
   -- Class RC, $1,986,932, affirmed at Ba3

As of the March 15, 2007, distribution date, the transaction's
aggregate certificate balance has decreased by approximately 93.9%
to $67.6 million from $1.1 billion at securitization.  Only one
loan, the Ritz Carlton New Orleans Loan, remains in the trust.

The Ritz Carlton Loan ($65.6 million pooled loan; $2.0 million
non-pooled loan) is secured by a mixed use complex consisting of a
527-room Ritz-Carlton Hotel, a 230-room Iberville Suites Hotel, a
20,600 square foot spa, a 23,000 square foot retail area and a
303-car parking garage.  The property, which is located on the
western border of the French Quarter near the New Orleans CBD,
suffered substantial damage in 2005 due to Hurricane Katrina and
has only recently reopened.  The Ritz-Carlton Hotel opened in
December 2006, the Iberville Suites Hotel opened in February 2007
and the spa is expected to reopen in April 2007.  The borrower has
exercised two of its three one-year extension options and the loan
matures in April 2008.  The loan benefits from strong sponsorship
and business interruption insurance which is expected to last
until year-end 2007.  The outlook for the recovery of the New
Orleans convention and tourism industry still remains uncertain
and Moody's will continue to closely monitor this loan's
performance.  Moody's current shadow rating of the pooled loan is
Ba2, the same as at last review.


WHITE BIRCH: Moody's Rates Proposed $550 Mil. Senior Loan at B2
---------------------------------------------------------------
Moody's Investors Service assigned a B2 rating to White Birch
Paper Company's proposed seven year, $550 million senior secured
term loan B due 2014.  

In addition, Moody's affirmed the company's B2 corporate family
rating, stable outlook, and speculative grade liquidity rating of
SGL-2.  Proceeds from the new term loan will be used to refinance
its existing senior secured credit facilities.

The rating action reflects the emerging unfavorable trends within
the newsprint industry. These trends include a decline in
consumption rates for newsprint, weakening prices, and escalating
wastepaper, wood chip, and energy costs.  White Birch's recently
improved operating performance, low cost position, and good
liquidity drive the affirmation of the corporate family rating.

At the same time, the company's reliance on a single commodity
product, the cyclical nature of newsprint prices, acquisition
risk, and the challenges continuing to impact the paper sector
such as overcapacity, weak demand, elevated costs for raw
materials and energy, and significant competitive pressures temper
the ratings.

In the prior year, Moody's highlighted that White Birch's ratings
could improve if the company was successful in reducing debt on a
sustainable basis while improving its cost position.  

Despite favorable cost reduction efforts and improved cash flow in
2006, it is Moody's opinion that significant declines in newsprint
pricing, consumption rates, and elevated wastepaper and wood chip
costs in 2007 make it unlikely that White Birch will sustain its
recent operating performance and significantly reduce debt levels.
High ONP costs have been attributable to strong demand in China
and shortages in the United States.  

Also, White Birch's mills located in Quebec are experiencing high
wood chip costs as sawmills have been shutting down due to the
housing slowdown.  Moody's expects that these factors will weaken
the company's operating margins in the near term.

Upgrades:

   * White Birch Paper Company

      -- Senior Secured Revolving Bank Credit Facility, Upgraded
         to 23-LGD2 from 31-LGD3

Assignments:

   * White Birch Paper Company

      -- Senior Secured Bank Credit Facility, Assigned B2 and a
         range of 49-LGD3

Withdrawals:

      -- White Birch Paper Company

      -- 1st Lien Senior Secured Term Loan, Withdrawn, previously
         Ba3 and a range of 31-LGD3

      -- 2nd Lien Sr. Sec. Term Loan, Withdrawn, previously Caa1       
         and a range of 81--LGD5

White Birch Paper Company, headquartered in Greenwich,
Connecticut, is a producer of newsprint and directory paper in
North America.


WHX CORPORATION: Unit Amends Wachovia & Steel Loan Agreements
-------------------------------------------------------------
WHX Corporation reported that its wholly-owned subsidiary Handy &
Harman amended its Loan and Security Agreement with Wachovia Bank,
National Association, up to $125,000,000.  Hand & Harman also
amended its Loan Security with Steel Partners II LP.

The amendments provided for the pledge of 65% of all outstanding
securities of Indiana Tube Danmark A/S, a wholly-owned subsidiary
of Handy & Harman International Ltd. and Protechno S.A. a wholly-
owned subsidiary of Indiana Tube.

The amendments also provided for waivers of certain events of
default existing as of March 29, 2007.

Steel  Partners II L.P. holds 5,029,793 shares of WHX's common
stock,  representing  approximately 50% of the outstanding  
shares.

Warren G. Lichtenstein, Chairman of the Board of WHX, is the sole
managing member of the general partner of Steel Partners II L.P.

In addition, Glen M. Kassan (Director and Chief Executive Officer
of WHX), John Quicke (Director and Vice President of WHX) and Jack
L. Howard and Josh Schector (Directors of WHX) are employees of
Steel Partners, Ltd., an affiliate of Steel Partners II, L.P.

                         About WHX Corp.

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).  WHX Corp. emerged from
bankruptcy on July 29, 2005.

At Sept. 30, 2005, the company's balance sheet showed a
stockholders' deficit of $24,525,000 compared to a deficit of
$96,929,000 in Dec. 31, 2004.


WORLD HEART: Chronic Losses Cue PwC to Raise Going Concern Doubt
----------------------------------------------------------------
PricewaterhouseCoopers LLP raised substantial doubt about the
ability of World Heart Corporation citing the company's recurring
losses after PwC audited World Heart's financial report for the
years ended Dec. 31, 2006, and 2005.  

The company incurred net losses of $20.1 million and $52.8 million
for the years ended Dec. 31, 2006, and 2005, respectively.  It
generated revenues of $8.6 million and $11.6 million for the years
2006 and 2005.  

The year 2006 was hit negatively by cost of goods sold totaling
$10.2 million, which drove gross margin to negative $1.6 million,
and total operating expenses of $18.5 million, resulting to an
operating loss of $20.1 million.  

In 2005, the company had a positive gross margin of $3.2 million,
resulting to a lower cost of goods sold of $8.5 million.  
However, the company incurred operating expenses that rose to
$55.4 million, due to expenses for acquired in-process research
and development of $18.1 million and goodwill impairment of
$17.2 million.  The company posted an operating loss of
$52.3 million in 2005.

As of Dec. 31, 2006, the company listed in its balance sheet
$20.5 million total assets and $5.8 million total liabilities,
resulting to $14.7 million total shareholders' equity.  Its
accumulated deficit rose to $272.1 million in 2006, from
$252 million in 2005.

                            Liquidity

At Dec. 31, 2006, World Heart had cash and cash equivalents of
$12.2 million, as compared with $10.7 million at Dec. 31, 2005,
an increase of $1.5 million.  This increase was primarily due to
financing activities offset by cash outflows from operations.  
In the fourth quarter of 2006, the company received net cash of
$13.9 million from a private placement of common stock to several
of the company's current investors and two new investors.

                     Acquired In-Process R&D  

During the third quarter of 2005, the company recorded a one-time,
non-cash charge of $18.1 million to expense the in-process R&D
acquired from MedQuest.  It estimated the value of the Levacor
Rotary VAD project using an income approach and applied risk-
adjusted discount rates to the estimated future revenue and
expenses attributable to this technology and the MagLev Plus at
the time of the acquisition.  The company determined that these
projects had no alternative future use and expensed the amounts
immediately.  There was no acquired in-process R&D expense
recorded in 2006.

                        Goodwill Impairment  

The purchase of Novacor from Edwards in 2000 resulted in the
recording of goodwill of $17.2 million.  At Dec. 31, 2005, the
company determined that the fair value of its goodwill was
impaired and, accordingly, recorded a goodwill impairment charge
of $17.2 million in the fourth quarter of 2005.  The impairment
was largely a result of slower than anticipated adoption of the
Novacor LVAS product. There was no goodwill impairment in 2006.

                        Restructuring Costs   

On Nov. 14, 2006, the company disclosed a restructuring and
realignment of its business to control spending and better
position World Heart to changing market conditions and diminished
demand for its first-generation Novacor LVAS.  The company reduced
its manufacturing program and downsized selling and administrative
personnel numbers associated with the Novacor LVAS, although it
will continue to support the product for existing patients, and at
the medical centers.  The restructuring also included a reduction
in World Heart's workforce by 41 people, primarily in the related
manufacturing and sales departments. Restructuring expenses of
about $646,000, including $470,000 severance-related charges and
$176,000 related to the disposal of fixed assets, were incurred in
the fourth quarter of 2006.  At Dec. 31, 2006, $91,000 of the
$470,000 severance related charges was disbursed, with the
remaining $379,000 included in accounts payable and accrued
liabilities.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1cb0

                       About World Heart

Headquartered in Oakland, California, World Heart Corporation
(NASDAQ: WHRT, TSX: WHT) -- http://www.worldheart.com/--  
develops, produces and sells ventricular assist devices.  VADs are
mechanical assist devices that supplement the circulatory function
of the heart by re-routing blood flow through a mechanical pump
allowing for the restoration of normal blood circulation.


WORNICK CO: Financial Filing Delay Cues S&P to Junk Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Wornick
Co. and its parent, TWC Holdings LLC, including lowering the
corporate credit ratings on both entities to 'CCC' from 'CCC+'.  
In addition, the ratings are placed on CreditWatch with negative
implications.
      
"The ratings actions reflect increased uncertainty regarding the
company's compliance with covenants in its various debt agreements
due to the late filing of annual financial reports, a large
goodwill write-down, and a likely 'going concern' qualification
from its auditors," said Standard & Poor's credit analyst
Christopher DeNicolo.
     
In a recent filing with the SEC stating that the company will be
15 days late in filing its 10-k for 2006, Wornick announced it
will be taking a $86.6 million impairment charge against nventory,
fixed assets, and goodwill.  The charge will result in negative
shareholder's equity.  The report also stated that the 10-k will
include a statement from the firm's auditors expressing
substantial doubt that the company can continue as a going concern
due to the constrained liquidity position.  It is not clear if
these events will result in a violation of covenants or an event
of default under the company's credit facility or other debt
indentures, or if the recent amendment to the credit facility that
waived other violations covers these as well.  Standard & Poor's
will monitor the situation closely and may change the rating or
CreditWatch implications as more information becomes available.
     
On March 14, 2007, Wornick assigned its $15 million revolving
credit facility to a new lender, amended the facility to waive
covenant violations and extend the maturity, and borrowed an
additional $10 million term loan.  The revolver is fully drawn,
but the term loan proceeds could be used to repay a portion of the
revolver borrowings or for ongoing working capital requirements.  
However, cash generation is still weak, albeit improving.  The
next $6.8 million interest payment is due in July 2007.
     
In January 2007, the firm's equity sponsor, Veritas Capital, made
a $5 million equity contribution to provide some additional
liquidity.  Also in January the CEO left and was replaced by Larry
Rose who was CEO at the time of the acquisition of Wornick by
Veritas in 2004.  The CFO was also removed and has not yet been
replaced.
     
Wornick specializes in the production, packaging, and distribution
of shelf-life, shelf-stable, and frozen foods in flexible pouches
and semi-rigid products.  The firm's two main lines of business
are military rations (approximately 70% of revenues) and co-
manufacturing for leading food brands (30%).  The company produces
both individual and group rations for the U.S. military.


XERIUM TECHNOLOGIES: Earns $3.2 Million in Quarter Ended Dec. 31
----------------------------------------------------------------
Xerium Technologies Inc. reported net income of $3.2 million in
the fourth quarter ended Dec. 31, 2006, compared with net income
of $10 million for the fourth quarter of 2005.  Charges, on an
after tax basis, affecting fourth quarter 2006 net income included
environmental expense of $3.1 million, Sarbanes-Oxley compliance
costs of $1 million and restructuring and impairment expenses of
$2.6 million.  

Net sales increased to $154.6 million in the fourth quarter of
2006, a 6.9% increase from $144.6 million for the fourth quarter
of 2005.  

Net cash provided by operating activities was $24.6 million for
the fourth quarter of 2006, compared to $28.2 million in the same
quarter last year.
    
Cash on hand at Dec. 31, 2006 was $16.8 million, compared to
$60 million at Dec. 31, 2005.

Thomas Gutierrez, chief executive officer of Xerium Technologies,
said, "We were pleased with our top-line growth during the fourth
quarter of 2006, both sequentially and on a year-over-year basis.
Our clothing business generated solid sequential sales growth in
most regions, with particular strength in Europe, while our roll
covers business also had another strong sales quarter.

Capital expenditures for the fourth quarter of 2006 were
$8.1 million, compared to $14.4 million for the fourth quarter of
2005.  Approximately $3.5 million of capital expenditures in
2006's fourth quarter were directed toward projects designed to
support the company's growth objectives, with the remaining
$4.6 million used to sustain the company's existing operations and
facilities.

Net sales for 2006 were $601.4 million, a 3.3% increase from
$582.4 million for 2005.  

Net income was $29.5 million for 2006, compared to a net loss of
$2.1 million for 2005.  

Net cash provided by operating activities was $69.2 million for
2006, compared to $54.7 million in 2005.  Net cash provided by
operating activities for 2005 reflects IPO-related expenditures of
$20.7 million.

At Dec. 31, 2006, the company's balance sheet showed
$990.7 million in total assets, $874.1 million in total
liabilities, and $116.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Dec. 31, 2006, are available for
free at http://researcharchives.com/t/s?1cac
    
                 About Xerium Technologies

Xerium Technologies Inc. (NYSE: XRM) -- http://xerium.com/-- is a  
leading global manufacturer and supplier of two types of products
used primarily in the production of paper: clothing and roll
covers.  The company, which operates around the world under a
variety of brand names, owns a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products integral to production, all designed to
optimize performance and reduce operational costs.  With 35
manufacturing facilities in 15 countries around the world, Xerium
Technologies has approximately 3,800 employees.

                          *     *     *

As reported in the Troubled Company Reporter on Feb. 13, 2007,
Moody's Investors Service downgraded Xerium Technologies':
Corporate Family Rating, to B2 from B1; Senior Secured Term Loan,
to B2 from B1; Senior Secured Revolving Credit Facility, to B2
from B1; and Probability of Default Rating, to B2 from B1


* Edward Zaelke Named Managing Partner of Chadbourne & Parke
------------------------------------------------------------
Edward Zaelke has been named Managing Partner of the international
law firm of Chadbourne & Parke LLP' office in Los Angeles.  The
move comes as part of Chadbourne's substantial expansion of the
office in the last six weeks.

As the Managing Partner in Los Angeles, Mr. Zaelke will oversee
the office's growing practice, which will include wind energy and
other areas of renewable energy.  Mr. Zaelke is the president of
the American Wind Energy Association and headed the Renewable
Energy Practice Group at his former law firm, Morgan, Lewis &
Bockius.

"Ed is a strong leader with great visibility in renewable energy,
which is a growth area for the Firm," Chadbourne Managing Partner
Charles O'Neill said.

Mr. Zaelke, 48, succeeds Jay Henneberry, a Los Angeles partner
who, after 13 years of leading the office, has decided to
concentrate on his litigation practice.  "Jay has done an
outstanding job in managing the Los Angeles office over the past
13 years," said Mr. O'Neill.  "The entire Firm is very grateful
for his efforts and appreciative of his success."

"Chadbourne is pursuing a West Coast strategy of smart, strategic
growth that focuses on the 'sweet spot' of our practice areas
here: renewable energy and litigation," Mr. Zaelke said.  "I am
delighted to help put this strategy into action."

In addition to Mr. Zaelke, partners Adam Umanoff and Thomas Dupuis
and a team of associates have joined Chadbourne in Los Angeles
from Morgan Lewis.  They bring broad experience in wind and
renewable energy matters.

The recent wind hires are the first step in the Los Angeles
office's expansion, which is aimed at adding lawyers in other
practice areas that complement those in the Firm's other offices.

Chadbourne's Los Angeles office opened in 1987 and serves as the
West Coast arm of the Firm's renewable energy, project finance,
litigation, products liability, real estate, tax, restructuring,
cross-border transaction and insurance and reinsurance practices.  
Lawyers in this office have represented companies in a variety of
complex business litigations, involving commercial and securities
fraud and government-contract matters.  The products liability
practice encompasses all aspects of litigation in federal and
state courts across the country.

                  About Chadbourne & Parke LLP

Chadbourne & Parke LLP -- http://www.chadbourne.com/-- an  
international law firm headquartered in New York City, provides a
full range of legal services, including mergers and acquisitions,
securities, project finance, private funds, corporate finance,
energy, communications and technology, commercial and products
liability litigation, securities litigation and regulatory
enforcement, special investigations and litigation, intellectual
property, antitrust, domestic and international tax, insurance and
reinsurance, environmental, real estate, bankruptcy and financial
restructuring, employment law and ERISA, trusts and estates and
government contract matters.  Major geographical areas of
concentration include Central and Eastern Europe, Russia and the
CIS, and Latin America. The Firm has offices in New York,
Washington, DC, Los Angeles, Houston, Moscow, St. Petersburg,
Warsaw (through a Polish partnership), Kyiv, Almaty, Tashkent,
Beijing, and a multinational partnership, Chadbourne & Parke, in
London.

                             *********

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, Shimero R. Jainga, Ronald C. Sy,
Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva,
Cherry A. Soriano-Baaclo, Melvin C. Tabao, Melanie C. Pador,
Ludivino Q. Climaco, Jr., Loyda I. Nartatez, 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.

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.

                    *** End of Transmission ***