TCR_Public/070416.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

               Monday, April 16, 2007, Vol. 11, No. 89

                             Headlines

AEW REAL: Discloses Payment of Final Liquidation Distribution
AJB INVESTMENTS: Case Summary & 19 Largest Unsecured Creditors
ALTERNATIVE CARE: Voluntary Chapter 11 Case Summary
AMERICABUILT CONSTRUCTION: Case Summary & 40 Largest Creditors
AUDATEX HOLDINGS: Moody's Rates Proposed $657.5 Mil. Loan at (P)B1

BUILDING MATERIALS: Moody's Holds Corporate Family Rating at Ba2
CAPITALSOURCE COMMERCIAL: Fitch Rates $34 Million Notes at BB+
CARRAWAY METHODIST: Files Plan & Disclosure Statement in Alabama
CARRAWAY METHODIST: Court Approves Warren Averett as Auditors
CHATTEM INC: Earns $45.1 Million in Year Ended Nov. 30, 2006

CIMAREX ENERGY: Moody's Rates Pending Senior Notes Offer at B1
CLARKE AMERICAN: Plan Private Offering for $615 Mil. of Sr. Notes
CLARKE AMERICAN: Moody's Junks Rating on Proposed $615 Mil. Notes
COMMERCIAL MORTGAGE: Fitch Puts Low-B Ratings on Six Certificates
COMMERCIAL MORTGAGE: S&P Lifts Ratings on Class E Certificates

CREDIT SUISSE: S&P Lifts Rating on Class J Certificates to BB+
CROWN CLO: S&P Puts Positive Watch on Class E Certificates' Rating
DAVITA INC: Improved Credit Figures Cue Fitch's Positive Outlook
DAY INT'L: Flint Group Merger Talks Cue S&P's Developing Watch
DIMENSIONS HEALTH: Fitch Cuts Rating on $74.5 Mil. Bonds to CC

DRESSER INC: S&P Junks Rating on Proposed $750 Million Facilities
EMAGIN CORP: Restates Financial Statements for Qtr. Ended Sept. 30
EQUITY ONE: Prices $150 Million of Unsecured Notes Offering
FIRST UNION: Moody's Affirms Junk Rating on Class N Certificates
FOAMEX INT'L: Dec. 31 Balance Sheet Upside-Down by $396.4 Million

FOREST DEVELOPMENT: Case Summary & 16 Largest Unsecured Creditors
GE CAPITAL: Moody's Holds Low-B Ratings on Five Certificates
GUAM POWER: S&P Revises Outlook on BB+ Rating to Stable
HANOVER COMPRESSOR: Calls for $29.9 Mil. Notes Redemption on May 8
JOSE SANCHEZ-PENA: Case Summary & 19 Largest Unsecured Creditors

KB HOME: Moody's Confirms Ba1 Corporate Family Rating
LB-UBS COMMERCIAL: Moody's Holds Low-B Ratings on 5 Certificates
LINENS 'N THINGS: Moody's Holds Corporate Family Rating at B3
MARD ENTERPRISES: Case Summary & 18 Largest Unsecured Creditors
MOBILE MINI: Moody's Holds Corporate Family Rating at Ba3

MORGAN STANLEY: S&P Holds Low-B Ratings on Six Class Certificates
MORTGAGE LENDERS: Hires Thelen Reid as Special Regulatory Counsel
MOST HOME: Posts Net Loss of $1.3 Million in Quarter Ended Jan. 31
MTR GAMING: Earns $4.4 Million in Year Ended December 31
NAVIOS MARITIME: Names George Achniotis as Chief Financial Officer

NEW YORK RACING: Hires Brown Harris to Appraise Race Tracks
NORTHWEST AIRLINES: Examiner Wants Willkie Farr as Counsel
NORTHWEST AIRLINES: Court Approves Equity Commitment Agreement
OSHKOSH TRUCK: Audie Zimmerman Joins as Director
PACER HEALTH: Restates 2006 Third Quarter Financial Statements

PACER INTERNATIONAL: Inks New $250 Million Senior Credit Facility
PACIFIC LUMBER: Court Okays Cash Collateral Use Until April 27
PACIFIC LUMBER: Court Okays Hiring of Deloitte & Touche as Auditor
PARADIGM SAN FRANCISCO: Case Summary & 5 Largest Unsec. Creditors
PATHEON INC: S&P Rates $150 Million Term B Facility at B+

PLEASANT CARE: Wants Citra Capital as Financial Consultant
REAL ESTATE: DBRS Confirms Low-B Ratings on Six Class Certificates
REYNOLDS AMERICAN: Good Performance Cues S&P's Positive Outlook
SCRANTON-LACKAWANNA: S&P Puts Bonds' Rating on Developing Watch
SEA CONTAINERS: Wants to Employ PWC Legal as U.K. Labor Counsel

SEA CONTAINERS: Can Lend Up to $7 Million to Non-Debtor Unit
SI INTERNATIONAL: Moody's Holds Ba3 Rating on $70.4 Mil. Term Loan
SIENA TECHNOLOGIES: Delays Filing of 2006 Form 10-KSB
STRUCTURED ASSET: S&P Places Class B2 Loan's Rating on Neg. Watch
SUTTER CBO: Credit Enhancement Prompts S&P to Raise Ratings

SYNOVICS PHARMA: Posts $2.4 Mil. Net Loss in Quarter Ended Jan. 31
TAM CAPITAL: Fitch Rates Proposed $200 Million Senior Notes at BB
TENET HEALTHCARE: Executive Vice-President T. Pullen to Retire
TENET HEALTHCARE: Former Fla. Gov. Jeb Bush Appointed as Director
TERAYON COMMUNICATION: Cuts Net Loss to $3.8 Million in Year 2006

THERMADYNE HOLDINGS: Posts $23 Million Net Loss in Full Year 2006
U.S. CONCRETE: Joint Venture Inks New $25 Million Credit Facility
US LEC: December 31 Balance Sheet Upside-Down by $287.7 Million
WACHOVIA BANK: Moody's Holds Low-B Ratings on Two Certificates
WESTAR ENERGY: S&P Puts Preliminary Rating to Shelf Registration

WOODS AUTO: Case Summary & 12 Largest Unsecured Creditors

* BOND PRICING: For the week of April 9 - April 13, 2007

                             *********

AEW REAL: Discloses Payment of Final Liquidation Distribution
-------------------------------------------------------------
AEW Real Estate Income Fund disclosed payment of $14.09 per common
share as a final liquidation distribution and a payment of $10.11
per common share reflecting the recognition of capital gains.  Of
the final distribution reflecting capital gains, $9.86 per common
share reflected recognized long-term capital gains, that will be
treated as net capital gains in the hands of the shareholders, and
$0.25 per common share reflected recognized short-term capital
gains, that will be treated as ordinary income in the hands of
shareholders.

The aggregate payments made were $92.8 million.  No distribution
of ordinary income was made as all of the Fund's net investment
income available for distribution was paid out in prior monthly
distributions.

The Fund is subject to the special U.S. tax laws applicable to
regulated investment companies.  Under U.S. tax accounting rules,
the amount of distributable income for each fiscal period depends
on the composition of distributions made by the underlying
portfolio of real estate investment trusts and on the aggregate
gains and losses realized by the Fund.

Accordingly, the precise amount of distributable income can only
be determined after the characterization of REIT distributions is
reported to the Fund after the end of this calendar year.  At that
time, distributions made by the Fund may be redesignated between
ordinary income distributions and capital gain distributions or,
if in excess of taxable income, as a non-taxable distribution.  In
early 2008, shareholders will receive a Form 1099-DIV that will
state the amount and final composition of the distributions for
the 2007 calendar year.

On April 10, 2007, owners of record of the Fund's preferred shares
as of the close of business on April 9, 2007 were paid their
liquidation preference, equal to $25,000 per share plus
accumulated but unpaid dividends.

The AEW Real Estate Income Fund (AMEX: RIF) -- http://www.aew.com/   
-- a non-diversified closed-end investment management company, is
advised by AEW Management and Advisors, L.P., an affiliate of AEW
Capital Management, L.P., which is a subsidiary of IXIS Asset
Management US Group, L.P.  AEW is a real estate investment
manager, providing advisory services to investors worldwide,
focusing on directly held real estate assets, real estate equity
securities, real estate opportunity funds and international
investment.  AEW and its affiliates currently manage over $30
billion1 of capital, which is invested in $41.5 billion of real
estate and securities in North America, Europe and Asia.


AJB INVESTMENTS: Case Summary & 19 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: A.J.B. Investments, L.L.C.
        dba Popeyes Chicken & Biscuits
        P.O. Box 63 Danville, KY 40423

Bankruptcy Case No.: 07-50718

Type of Business: The Debtor is a Popeyes Chicken & Biscuits
                  franchisee.

Chapter 11 Petition Date: April 12, 2007

Court: Eastern District of Kentucky (Lexington)

Judge: Joseph M. Scott Jr.

Debtor's Counsel: Kathryn Warnecke Ryan, Esq.
                  Henry Watz Gardner Sellars & Gardner, P.L.L.C.
                  401 West Main Street, Suite 314
                  Lexington, KY 40507
                  Tel: (859) 253-1320
                  Fax: (859) 255-8316

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's 19 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Citizens Bank of Cumberland      bank loan             $792,460
County, Inc.


National City Bank               bank loan;            $434,834
301 East Main Street             value of
Lexington, KY 40507              security:
                                 $120,000

Community Trust Bank, Inc.       bank loan;            $414,000
346 North Mayo Trail             value of
P.O. Box 2947                    security:
                                 $792,460

U.S. Bank, N.A.                  bank loan             $215,000
(formerly Firstar Bank, N.A.)

Central Kentucky Federal         bank loan;            $207,223
Savings Bank                     value of
                                 security:
                                 $275,880

Kentucky Revenue Cabinet         sales taxes            $80,000

Pop-I-Co., Inc.                  management             $70,000
                                 contract/
                                 settlement

National City Leasing Corp.      equipment lease        $48,694
                                 Georgetown, KY

Farmers National Bank            bank loan;             $33,949

A.F.C. Enterprises, Inc.         franchise fees         $28,533

Lopp Properties                                         $17,968

I-Supply                                                $10,000

Kern Food Distributors                                   $6,500

Fulcrum Corporation              former landlord        unknown
                                 Nicholasville, KY

H.N.W., Inc.                     former landlord        unknown
                                 Lexington, KY-
                                 South Broadway

Jeffrey Baird                    former landlord        unknown
and Christy Baird                Danville, KY

MidPop, L.L.C.                   former landlord        unknown
                                 Winchester, KY

Robert J. Hassur and             landlord                $6,018
Linda Hassur                     Tiverton

                                 former landlord        unknown
                                 Somerset

Pepsi Cola Bottling Co.                                  $4,000


ALTERNATIVE CARE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Alternative Care Corporation
        11917 E Diana Court,
        Spokane Valley, WA 99206
        Tel: (509) 928-2580

Bankruptcy Case No.: 07-01209

Chapter 11 Petition Date: April 11, 2007

Court: Eastern District of Washington (Spokane/Yakima)

Judge: Patricia C Williams

Debtor's Counsel: John F Bury Murphy, Esq
                  Bantz Bury PS
                  818 West Riverside No.631
                  Spokane, WA 99201-0989
                  Tel: (509) 838-4458
                  Fax: (509) 838-5466

Estimated Assets: $1 Million to $100 Million

Estimated Debts: $1 Million to Million

The Debtor did not file a list of its 20 largest unsecured
creditors.


AMERICABUILT CONSTRUCTION: Case Summary & 40 Largest Creditors
--------------------------------------------------------------
Lead Debtor: Americabuilt Construction, Inc.
             5255 East Williams Circle, Suite 6000
             West Tucson, AZ 85711

Bankruptcy Case No.: 07-00607

Debtor-affiliates filing separate chapter 11 petitions:

      Entity                                     Case No.
      ------                                     --------
      Americabuilt Communities, Inc.             07-00608

Type of Business: The Debtors are home builders in Arizona.  
                  See http://www.americabuilt.com/

Chapter 11 Petition Date: April 12, 2007

Court: District of Arizona (Tucson)

Judge: James M. Marlar

Debtors' Counsel: Eric Slocum Sparks, Esq.
                  110 South Church Avenue, Suite 2270
                  Tucson, AZ 85701
                  Tel: (520) 623-8330
                  Fax: (520) 623-9157

Estimated Assets: $100,000 to $1 Million

Estimated Debts:  $1 Million to $100 Million

A. Americabuilt Construction, Inc's 20 Largest Unsecured
   Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
ROR Construction, Inc.           trade debt            $238,287
1101 South Georgetown Drive
Tucson, AZ 85710

Bates Paving & Sealing           trade debt            $201,867
3225 East 44th Street
Tucson, AZ 85730

Escalante Concrete               trade debt            $151,129
P.O. Box 37063
Tucson, AZ 85740

Riggs Plumbing, L.L.C.           trade debt            $132,015

Metric Roofing of Tucson         trade debt            $131,816

New Home Interiors               trade debt            $120,974

Empire Southwest                 trade debt             $89,509

Sunoran Stucco, L.L.C.           trade debt             $50,930

Deanda Construction, Inc.        trade debt             $49,084

Koedyker & Kenyon                trade debt             $46,854

Westar Appliances                trade debt             $39,813

Selectbuild Arizona, L.L.C.      trade debt             $36,989

Artistic Drywall                 trade debt             $36,775

American Openings                trade debt             $36,774

Brooks Assoc. Landscaping        trade debt             $36,670

Apex Windows                     trade debt             $25,643

Coronado Engineering             trade debt             $25,600

Petty Products                   trade debt             $25,010

Young Block Co., Inc.            trade debt             $25,053

Gale Insulation                  trade debt             $24,723

B. Americabuilt Communities, Inc's 20 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Donald & Olive Strittmatter      construction          $350,610
4110 East La Paloma Drive        deposit
Tucson, AZ 85718

Robert & Swantje Fogel           construction          $338,482
2891 North Placita Rancho        deposit
Agave
Tucson, AZ 85715

Levitz Family Trust              construction           $28,096
7311 East Vuelta Rancho          deposit
Mesquite
Tucson, AZ 85715

Sharon Chaimson                  construction           $27,995
                                 deposit

Mary Pearson                     construction           $22,430
                                 order

Emery Pavol                      construction           $16,575
                                 deposit

David & Lauri Wagner             construction           $15,915
                                 deposit

Susiyna Chanboon                 construction           $15,579
                                 deposit

Michael Killerbreu &             construction           $15,367
Julie Chinis                     deposit

Jeff & Tatiana Struthers         construction           $13,995
                                 deposit

Dora Pina                        construction           $12,795
                                 deposit

Robert & Lindsey Rose            construction           $12,050
                                 deposit

Steven & Elizabeth Popish        construction           $11,670
                                 deposit

Richard & Gloria Elmer           construction            $7,642
                                 deposit

Baldemar Gastelum &              construction            $5,898
Maria Quintana                   deposit

Curtis & Nancy Cowley            construction            $5,000
                                 deposit

Jacinto Martinez, Jr.            construction            $3,000
                                 deposit

Shawn Mott & Rosalinda Alaniz    construction            $3,000
                                 deposit

Matthew & Amy Shimel             construction            $3,000
                                 deposit

Phillip Chu                      construction            $1,000
                                 deposit


AUDATEX HOLDINGS: Moody's Rates Proposed $657.5 Mil. Loan at (P)B1
------------------------------------------------------------------
Moody's Investors Service assigned a (P)B1 rating to the proposed
$657.5 million first lien credit facility of certain subsidiaries
of Audatex Holdings, LLC.  Audatex's parent holding company,
Solera Holdings, LLC, filed a registration statement on Form S-1
with the Securities and Exchange Commission in connection with an
anticipated initial public offering of its common stock.  Audatex
expects to use the proceeds from a new $607.5 million first lien
term loan and funds contributed to the company in connection with
the IPO to repay its existing first lien, second lien and
subordinated indebtedness.  Moody's concurrently placed the B2
Corporate Family Rating and B2 Probability of Default Rating on
review for possible upgrade.

If the IPO and refinancing are completed and debt reduction of at
least $230 million is achieved, then Moody's expects to upgrade
the Corporate Family Rating to B1 from B2 with a stable rating
outlook.  The proposed credit facility is contingent upon the
completion of the IPO and the P(B1) rating on the credit facility
anticipates a B1 Corporate Family Rating.  Moody's expects to
withdraw the ratings on the existing first and second lien credit
facilities upon the completion of the refinancing.

Pro forma for the IPO and refinancing, Audatex will be well
positioned in the B1 rating category based on leverage, coverage
and cash flow metrics.  The ratings continue to be supported by
the company's leading worldwide market position in its niche
market, solid geographic and customer diversification and strong
operating margins.  The ratings remain constrained by market share
losses in the U.S. market, intense price competition and the
potential for new competitors or new software products to erode
market share.

Moody's placed these ratings of Audatex Holdings, LLC on review
for possible upgrade:

     Corporate Family Rating, B2

     Probability of Default Rating, B2

Moody's took these rating actions with respect to Audatex Holdings
IV B.V. (an indirect wholly owned subsidiary of Audatex and a
holding company for certain European operating subsidiaries):

     Assigned $25 million equivalent Euro First Lien Revolving
     Credit Facility due 2012, (P)B1 (LGD 3- 49%)

     Assigned $357.5 million equivalent Euro First Lien Term Loan
     due 2013, (P)B1 (LGD 3-49%)

     Affirmed $25 million equivalent Euro First Lien Revolving    
     Credit Facility due 2012, Ba3 (LGD 2-29%)*

     Affirmed $287 million equivalent Euro First Lien Term Loan   
     due 2013, Ba3 (LGD 2-29%)*

     Affirmed $216 million equivalent Euro Second Lien Term Loan
     due 2013, Caa1 (LGD 5- 78%)*

Business Services Group Holdings B.V., a holding company for the
Netherlands operations, will be a co-borrower under these
facilities.

Moody's took these rating actions with respect to Audatex North
America, Inc. (an indirect wholly owned subsidiary of Audatex and
a holding company for the North American operating subsidiaries):

     Assigned $25 million First Lien Revolving Credit Facility due    
     2012, (P)B1 (LGD 3- 49%)

     Assigned $250 million First Lien Term Loan due 2013, (P)B1
     (LGD 3-49%)

     Affirmed $25 million First Lien Revolving Credit Facility due
     2012, Ba3 (LGD 2-29%)*

     Affirmed $239 million equivalent Euro First Lien Term Loan
     due 2013, Ba3 (LGD 2-29%)*

* These ratings/(assessments) are expected to be withdrawn upon
the completion of the refinancing.

Headquartered in San Ramon, California, Audatex is a leading
provider of information and software solutions to the automobile
claims industry.  Reported revenue for the twelve month period
ended Dec. 31, 2006 was $447 million.


BUILDING MATERIALS: Moody's Holds Corporate Family Rating at Ba2
----------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of Building
Materials Holding Corporation, including its Ba2 corporate family
rating, its Ba3 probability-of-default rating, and its Ba2 (LGD3,
41%) 1st Lien Bank Credit Facility rating.  The company's outlook
was revised to negative from stable.

The negative outlook reflects Moody's concerns over the
increasingly weak operating performance of BMHC's homebuilding
customers, the expectation of an ongoing slowdown in residential
building activity compared with levels seen in 2005 and most of
2006, and that management's ability cut overhead costs, maintain
liquidity and reduce debt leverage in the face of a downturn of
unknown breadth and duration is as yet unproven.

The affirmation of BMHC's corporate family rating reflects BMHC's
conservatively capitalized balance sheet, healthy liquidity, its
broad and deep penetration of the national scale production
homebuilder market, continuing focus on growing contribution from
higher-margin value-added products within its sales mix, and its
leading industry position.  Moody's remains concerned about the
company's dependence on the cyclical homebuilding industry, as
well as residual integration risks associated with an aggressive
acquisition strategy.

Going forward, consideration for stabilization of the company's
outlook and ratings will include its ability to mitigate the risks
associated with declining demand by 1) cutting costs, 2)
strengthening the balance sheet, and 3) building liquidity and
financial strength in the short-to-intermediate term. Factors that
would pressure its ratings include, financially levering
transactions or severe declines in operating performance that
would cause free cash flow-to-debt to fall below 10%, debt-to-book
capitalization to exceed 50%, or adjusted debt to EBITDA to exceed
2.5x.  Material margin erosion, and/or large unforeseen impairment
charges could also result in negative pressure.

Headquartered in San Francisco, California, BMHC, a Fortune 1000
company, is one of the largest providers of residential
construction services and building materials in the United States.
BMHC serves the homebuilding industry through two subsidiaries:
SelectBuild provides construction services to high-volume
production homebuilders in key growth markets across the country;
and BMC West distributes building materials and manufactures
building components for professional builders and contractors in
the western and southern states.


CAPITALSOURCE COMMERCIAL: Fitch Rates $34 Million Notes at BB+
--------------------------------------------------------------
Fitch assigns these ratings to CapitalSource Commercial Loan Trust
2007-1:

     - $586,000,000 class A floating rate asset-backed notes,
       due 2017 'AAA'

     - $20,000,000 class B floating rate deferrable asset-backed
       notes, due 2017 'AA'

     - $84,000,000 class C floating rate deferrable asset-backed  
       notes, due 2017 'A'

     - $48,000,000 class D floating rate deferrable asset-backed
       notes, due 2017 'BBB'

     - $34,000,000 class E floating rate deferrable asset-backed    
       notes, due 2017 'BB+'


CARRAWAY METHODIST: Files Plan & Disclosure Statement in Alabama
----------------------------------------------------------------
Carraway Methodist Health Systems and its debtor-affiliates
filed with the U.S. Bankruptcy Court for the Northern District
of Alabama their Amended Joint Chapter 11 Plan of Liquidation and
an accompanying Amended Joint Disclosure Statement explaining that
Plan.

                           Assets Sale

The Debtors have sold substantially all their assets to Doctors
Community Healthcare Corporation for $26.5 million.

The Debtors tell the Court that Doctors Community did not assume
any of the liabilities other that its obligations to perform under
the contracts and leases assigned to Doctors; the liability of
certain accrued employee benefits; obligations under certain
provider agreements.

                        Other Source Funds

The Debtors tell the Court that it has cash, securities, and other
deposits of $1.6 million in aggregate, which were the proceeds of
gifts made to the Debtors for educational and other eleemosynary
purposes.

Before the Debtors filed for bankruptcy, it disclosed a $500,000
cash deposit in favor of the Alabama Department of Industrial
Relations regarding the their status as self-insured under
the workers' compensation laws of Alabama.

Additionally, the Debtors have $400,000 in cash deposit
posted with the Unemployment Compensation Division of the
Alabama Department that provides for payment of post-petition
unemployment compensation claims to the unsecured creditors.

                       Overview of the Plan

The Plan contemplates the distribution of the proceeds of sale to
all valid claims, as well as the creation of a trust that will
liquidate the their remaining assets, including the Med Mal Fund,
before the Plan is confirmed.

The Med Mal Fund refers to the fund established and administered
under Carraway Methodist Medical Center Contingent Liability
Management Revocable Trust Agreement dated June 30, 1976.


                       Treatment of Claims

Under the Plan, Administrative and Priority Claims will be paid
in full in cash from the Administrative and Priority Reserve.  
The Debtor will transfer to Bradley Arant Rose & White LLP the
portion of the carveout allocable.  Remaining balance, if any,
will be transferred to the representative of the Unsecured
Creditors Distribution.

Assumed Cost Report Claims holders will retain their legal,
equitable, and contractual right with respect to their claim.

Each holder of Other Priority Claims will be paid in cash on the
Plan's effective date from the Administrative and Priority Claim
Reserve.

Lenders Claim will receive a pro rata share, in accordance with
the Intercreditor Agreement.

Holders of Other Secured Claims will receive, to the extent
possible, the collateral securing its claim.  Otherwise, the
collateral securing the claim without warranty, or cash equal
to the amount from the net proceeds of the collateral.

Holders of Unsecured Claims will receive their pro rata share of
the dividend on the initial distribution date.

Each Holder of Med Mal Claims will be paid from the Med Mal Fund
in accordance with the Med Mal Trust.  All parties in interest
will reserve all rights and interests.  Med Mal Claims will be
liquidated set forth in the procedure under the Plan.  Claims not
paid, if any, due to insufficient Med Mal Fund will be treated as
Punitive Damages Claims.

Punitive Damages Claims will be paid in full after all valid
claims have been paid.

Holder of Equity Interests will not receive any distribution under
the Plan.

A full-text copy of Carraway Methodist's Disclosure Statement is
available for a fee at:

  http://www.researcharchives.com/bin/download?id=070413012120

Based in Birmingham, Alabama, Carraway Methodist Health Systems,
dba Carraway Methodist Medical Center -- http://www.carraway.org/
-- is a teaching hospital, referral center and acute care hospital
that serves Birmingham and north central Alabama.  The Company and
its affiliates filed for chapter 11 protection on Sept. 18, 2006
(Bankr. N.D. Ala. Case No. 06-03501).  Christopher L. Hawkins,
Esq., Helen D. Ball, Esq., and Patrick Darby, Esq., at Bradley
Arant Rose & White LLP, represent the Debtors.  When the Debtors
filed for protection from their creditors, they listed estimated
assets between $10 million and $50 million and estimated debts of
more than $100 million.  The Debtor's exclusive period to file a
chapter 11 plan expires on Jan. 16, 2007.


CARRAWAY METHODIST: Court Approves Warren Averett as Auditors
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Alabama
gave Carraway Methodist Health Systems and its debtor-affiliates
permission to employ Warren, Averett, Kimbrough, and Marino, LLC,
as their auditors.

The firm is expected to:

     a. prepare forms that the Debtors are required to file under
        the Internal Revenue Code, including the forms listed on
        the fee schedule;

     b. perform audits of the statement of net assets available
        for the retirement plan;

     c. prepare schedules related to the Debtors submission of
        forms required by applicable ERISA rules and regulations;
        and

     d. conduct any other auditing activities, and provide other
        information and assistance as the Debtors or its
        bankruptcy counsel may deem necessary.

J.C. Rouse, a member at the firm, tells the Court that the firm
seeks a fixed fee for its service.

Mr. Rouse assures the Court that the firm does not hold any
interest adverse to the Debtors' estate and is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.

A full-text copy of Warren Averett's Fee Schedule is available for
free at http://ResearchArchives.com/t/s?1d0d

Based in Birmingham, Alabama, Carraway Methodist Health Systems,
dba Carraway Methodist Medical Center -- http://www.carraway.org/
-- is a teaching hospital, referral center and acute care hospital
that serves Birmingham and north central Alabama.  The Company and
its affiliates filed for chapter 11 protection on Sept. 18, 2006
(Bankr. N.D. Ala. Case No. 06-03501).  Christopher L. Hawkins,
Esq., Helen D. Ball, Esq., and Patrick Darby, Esq., at Bradley
Arant Rose & White LLP, represent the Debtors.  When the Debtors
filed for protection from their creditors, they listed estimated
assets between $10 million and $50 million and estimated debts of
more than $100 million.  The Debtor's exclusive period to file a
chapter 11 plan expires on Jan. 16, 2007.


CHATTEM INC: Earns $45.1 Million in Year Ended Nov. 30, 2006
------------------------------------------------------------
Chattem Inc. reported $45.1 million of net income on
$300.5 million of revenues for the year ended Nov. 30, 2006,
compared with $36 million of net income on $279.3 million of
revenues for the year ended Nov. 30, 2005.

Total revenues increased 11% over the prior year excluding sales
of pHisoderm(R), which was divested in November 2005.  Revenue
growth for fiscal year 2006 was led by Gold Bond, Dexatrim,
Selsun, BullFrog and Pamprin along with the new product launch of
Icy Hot Pro-Therapy.

Net income for the fourth quarter of fiscal 2006 was $4.9 million,
compared to $2.4 million in the prior year quarter.  In the fourth
quarter of fiscal 2006, the company recorded a reserve for Icy Hot
Pro-Therapy retail and in-house inventory exposure totaling
$5.3 million, which resulted in negative sales for the brand and
higher costs of sales during the fiscal fourth quarter of 2006.

Total revenues for the fourth quarter of fiscal 2006 were
$65.1 million, compared to total revenues of $63.9 million
in the prior year quarter, representing a 2% increase.  Revenue
growth for the quarter was driven by the continued strength of
the Gold Bond, Dexatrim, BullFrog and Pamprin businesses offset
by a reduction in sales of Icy Hot Pro-Therapy resulting from a
reserve for retail returns recorded in the fourth quarter.

                       Financial Highlights

Gross margin for fiscal 2006 was 68.7%, as compared with 71.4%
during fiscal 2005 largely attributable to the launch of Icy Hot
Pro-Therapy, which has lower gross margins than the company's
other products.

Advertising and promotion expense was 32% for fiscal 2006, as
compared with 27.5% during fiscal 2005, due primarily to increased
spending to support the company's new product introductions.

Selling, general and administrative expenses decreased to 15.6%
during fiscal 2006, as compared with 16.9% during fiscal 2005
reflecting lower restricted stock and variable compensation
expense, offset by share-based payment expense under SFAS 123R.

During fiscal 2006, the company repurchased 1.2 million shares at
an average cost of $33.57 per share, or $39.3 million in the
aggregate.

The company completed a private offering of $125 million 2%
Convertible Senior Notes, the proceeds of which were used to fund
in part the acquisition of brands from Johnson & Johnson.

The company successfully resolved its Dexatrim PPA litigation and
recovered $19.3 million, net of legal expenses.

At Nov. 30, 2006, the company's balance sheet showed
$415.3 million in total assets, $279.7 million in total
liabilities, and $135.6 million in total stockholders' equity.

Full-text copies of the company's consolidated financial
statements for the year ended Nov. 30, 2006, are available for
free at http://researcharchives.com/t/s?1a1c   

                       Acquisition of Brands

On Jan. 2, 2007, the company completed the closing of the
previously announced agreement to acquire the U.S. rights to five
leading consumer and over-the-counter brands from Johnson &
Johnson for $410 million.  The acquired brands include ACT(R), an
anti-cavity mouthwash/mouth rinse; Cortizone, a hydrocortisone
anti-itch product; Unisom(R), an OTC sleep aid; Kaopectate(R), an
anti-diarrhea product; and Balmex(R), a diaper rash product.

The acquisition was funded in part with the proceeds from a new
$300 million term loan arranged and led by Bank of America
pursuant to a Fifth Amendment to and restatement of the company's
Credit Agreement, with the remaining funds principally provided
through the use of a portion of the proceeds derived from the
company's previously announced sale of $125 million
2% Convertible Senior Notes due 2013.

"The company completed another outstanding year in fiscal 2006,
highlighted by several key events.  Most significantly, we reached
an agreement to acquire five major brands from Johnson & Johnson,
a transaction, which subsequently closed on Jan. 2, 2007," said
chief executive officer Zan Guerry.  

                          About Chattem

Based in Chattanooga, Tennessee, Chattem Inc. (NASDAQ: CHTT) --
http://www.chattem.com/-- manufactures and markets a variety of  
branded consumer products, including over-the-counter healthcare
products and toiletries and skin care products.  The company's
products include Gold Bond medicated powder, Icy Hot topical
analgesic, Dexatrim appetite suppressant, and Bullfrog sunblock.  
Chattem has operations in the U.K., Australia, and Puerto Rico.

                           *     *     *

Chattem Inc. carries Moody's Investors Service's Ba3 corporate
family rating and B2 senior subordinated rating.

The company also carries Standard & Poor's Ratings Services' 'BB-'
corporate credit rating.  Outlook on the company is stable.


CIMAREX ENERGY: Moody's Rates Pending Senior Notes Offer at B1
--------------------------------------------------------------
Moody's assigned a B1 note rating to Cimarex Energy's pending
$300 million senior unsecured 10 year note offering.  At the same
time, Moody's affirmed XEC's existing Ba3 corporate family rating,
Ba3 Probability of Default Rating, and B1 senior unsecured note
rating.  Under Moody's Loss Given Default debt notching
methodology, the two note issues are rated B1 (LGD 5; 70%).

Proceeds will fund XEC's call of its 9.6% notes due 2012 and will
repay secured bank debt.  Moody's would withdraw the existing B1
rating on the 9.6% notes after redemption.  XEC is an exploration
and production company whose core properties are in the
MidContinent, Permian Basin, Gulf Coast, and Gulf of Mexico.  The
rating outlook is stable.

The ratings are supported by XEC's reserve and production scale
and diversification; by current and historically conservative
financial strategy; by a continued expected strong price
environment supplying high liquidity before its application to
sustaining capital spending; productive foundation support from
its adequate 7.1 year proven developed reserve life; and by
current and expected moderate leverage.  We do note that while
leverage on PD reserves is amongst the lowest in the high-yield
universe, it has climbed as XEC outspent cash flow for
disappointing overall results at uneconomically high costs.  Over
the years, XEC has been a conservative reserve booker, carrying a
low percentage of proven undeveloped reserves.  Further comfort
stems from XEC's past practice of funding corporate acquisitions
with all-stock exchanges of common equity though, as in the Magnum
Hunter acquisition, the target may come with material existing
debt.

The ratings are restrained by XEC's weak 2006 drilling results;
resulting very high and uneconomic 2006 reserve replacement costs,
negative cash margin coverage of its sustaining capital spending
requirement, and high total full-cycle cost structure; our
expectation that, in spite of a reduced capital budget, XEC is
likely to outspend 2007 cash flow, though to a lesser degree than
in 2006; and our need to see the degree to which that weak reserve
replacement cost momentum continues into 2007.  In line with many
peers, surging costs and disappointing drilling results eroded
cash flow coverage of sustaining capital spending to the point
where in 2006 it was covered only 85% by cash margins.

Embedded in our rating is an expectation that XEC's will sustain
its long-standing conservative leverage strategy and the ratings
would likely not accommodate large leveraged acquisitions.  This
is especially important until its effort to readjust its spending
patterns and reduce reserve replacement costs to boost production
growth at more competitive costs bears fruit.  Drilling results
along the southern Louisiana Gulf Coast were particularly
disappointing.  Moody's also notes that XEC found it appropriate
to reduce its outlays in its core Permian Basin in spite of strong
sector prices.

XEC's production levels started strong at 460 mmcfe/day in first
quarter 2006 but declined to 440 mmcfe/day by fourth quarter due
to a few new and prolific Gulf Coast and Gulf of Mexico wells that
watered out prematurely.  XEC's production trends are inconsistent
due to a reliance on higher cost, higher risk, and initially flush
but rapidly declining Gulf Coast and Gulf of Mexico wells for
growth. When successful, their initially flush production, if
delivered into up-cycle prices, does return a fast payout, though
with the burden of rapid decline requiring consistently successful
replacement drilling.  XEC incurred weak results and could not
offset well decline to drive growth.

We believe the decline rate of the Gulf Coast and Gulf of Mexico
will block growth if XEC cannot consistently sequence new flush
wells and expect roughly flat production over the next twelve
months.  However, and importantly, its longer lived Mid-continent
and Permian property base provides an important risk diversifying
base.  In 2007, while after reviewing its drilling results in
Southern Louisiana, XEC will still dedicate a large minority of
its capital program to the Gulf Coast and Gulf of Mexico, though
it believes a higher proportion of capital will target lower risk
prospects than was the case in 2006.

Under Moody's exploration and production rating methodology, XEC's
composite profile also maps to a Ba3 rating, matching the assigned
ratings.  Its scale and diversification place it firmly in the Ba
category, with production of approximately 27 mmboe per year, PD
reserves of 192mmboe, and proven reserves of 242 mmboe.  XEC's
conservative leverage measures map to the A and Baa ranges.  While
XEC has traditionally followed conservative reserve booking
practices, lower 2006 natural gas prices and well performance
forced negative revisions this year.  It currently has a low 20%
of reserves in the PUD category.

However, reinvestment risk characteristics remain restraining
factors as XEC delivered weak 2006 volume and drilling unit
economics results after spending a bit over $1 billion in 2006.
Unless these ratios strengthen, they have the potential to erode
the business and leverage standing sufficiently to hurt the
outlook and the ratings.  Its ratings would likely suffer if it
delivered a similar year in 2007.  In spite of outspending cash
flow by approximately $150 million, fourth quarter 2006 production
was a low 2% higher than fourth quarter 2005, was down 1% from
third quarter 2006 and probably exited 2006 up less than 2% over
fourth quarter 2005.  In effect, XEC borrowed approximately $150
million to fund very modest and high cost growth.

XEC's very high one-year drillbit reserve replacement cost of
$35.77/boe maps to the Caa range and drove the three-year average
to $21.52/boe, also mapping to the Caa range.  The $28.83/boe one-
year all sources result maps to Caa and drove the three-year
average metric to $18.50/boe, mapping to a Caa.  Total full-cycle
costs of roughly $33 map to a Caa rating, partly due to high 3-
year all sources reserve replacement costs and due to high
$11.36/boe of unit production costs.  G&A expense of approximately
$1.85/boe and interest expense of approximately $1.34/boe remain
very competitive.

However, leverage is conservative and is an important support.
Gauging by the pace of XEX's cash flow and capital spending, we
project that debt is higher than at year-end 2006.  Nevertheless,
our estimated adjusted debt leverage of approximately $2.70/boe to
$2.85/boe of PD reserves still maps to an A rating, while its
leverage on total proven reserves, fully loaded for FAS 69
development capital to bring all booked proven reserves to
production, of approximately $4.55/boe to $4.70/boe maps to a
lower but strong Baa.  SEC's retained cash flow coverage of debt,
after deduction of sustaining capital spending from cash flow was
69%, mapping to a strong A rating.  Leverage of approximately
$7,350/boe to $7,450/boe of average daily production is
conservative.


CLARKE AMERICAN: Plan Private Offering for $615 Mil. of Sr. Notes
-----------------------------------------------------------------
Clarke American Corp. intends to commence a private placement
offering to eligible purchasers of an aggregate of $615 million of
senior floating rate notes due 2015 and senior fixed rate notes
due 2015.

The offering of the notes is part of the financing for, and is
conditioned upon the completion of, the proposed acquisition of
John H. Harland Company by M & F Worldwide Corp.  

The resale of the notes in connection with the private placement
offering, which is subject to market and other conditions, will be
made within the United States only to qualified institutional
buyers and outside the U.S. only to non-U.S. investors under
Regulation S of the Securities Act of 1933, as amended.

The notes being offered have not been registered under the
Securities Act of 1933 or applicable state securities laws, and
may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act of 1933, as amended, and
applicable state laws.

                      About John H. Harland

John H. Harland Company (NYSE:JH) -- http://www.harland.net/--  
provides and sells printed products & software application to
financial institutions like banks, brokerage houses & financial
software companies.  The products & services include scannable
forms, scanning equipment, imaging software, survey services &
testing & assessment tools.  It operates in the United States &
Puerto Rico.

                      About Clarke American

Clarke American Corp. -- http://www.clarkeamerican.com/-- is a   
provider of checks, related products and services, and marketing
services.  Clarke American serves financial institutions through
the Clarke American and Alcott Routon brands and serves consumers
and businesses directly through the Checks In The Mail and
B2Direct brands.  Clarke American is an indirect wholly owned
subsidiary of M & F Worldwide Corp. (NYSE: MFW), a holding company
that, in addition to Clarke American, wholly owns Mafco Worldwide
Corporation, which is the world's largest producer of licorice
extracts and related products.


CLARKE AMERICAN: Moody's Junks Rating on Proposed $615 Mil. Notes
-----------------------------------------------------------------
Moody's Investors Service assigned a Caa1 rating to Clarke
American Corp.'s proposed $615 million of fixed and floating rate
senior unsecured notes due 2015.  All of Clarke's domestic
subsidiaries are expected to guarantee the notes on a senior
unsecured basis.  Moody's March 7, 2007 rating action on Clarke
incorporated the effect of the issuance of $615 million of junior
debt in conjunction with the acquisition of John H. Harland
Company and, accordingly, the B1 rating on the company's proposed
bank facility is not affected by the issuance of the new senior
unsecured notes.  Clarke's Corporate Family rating is B2 and the
rating outlook remains stable.

Issuer: Clarke American Corp.

     - Guaranteed Senior Unsecured Regular Bond/Debenture,
       Assigned Caa1 (LGD5-89)

Clarke American Corp., headquartered in San Antonio, TX, is a
provider of (1) check and check-related products and services to
financial institutions, businesses and consumers, (2) software and
related services to financial institutions, and (3) data
collection and testing products through its Scantron division.
Revenues will approximate $1.7 billion upon completion of the
Harland acquisition.


COMMERCIAL MORTGAGE: Fitch Puts Low-B Ratings on Six Certificates
-----------------------------------------------------------------
Fitch Ratings has assigned these ratings to ML-CFC Commercial
Mortgage Trust's commercial mortgage pass-through certificates,
series 2007-6:

- $27,682,000 class A-1 'AAA'
- $170,430,000 class A-2 'AAA'
- $150,000,000 class A-2FL 'AAA'
- $60,689,000 class A-3 'AAA'
- $728,987,000 class A-4 'AAA'
- $364,360,000 class A-1A 'AAA'
- $214,593,000 class AM 'AAA'
- $107,403,000 class AJ 'AAA'
- $75,000,000 class AJ-FL 'AAA'
- $2,145,926,359 class X* 'AAA'
- $42,919,000 class B 'AA'
- $16,094,000 class C 'AA-'
- $34,872,000 class D 'A'
- $18,776,000 class E 'A-'
- $24,142,000 class F 'BBB+'
- $24,142,000 class G 'BBB'
- $26,824,000 class H 'BBB-'
- $5,365,000 class J 'BB+'
- $5,365,000 class K 'BB'
- $5,364,000 class L 'BB-'
- $5,365,000 class M 'B+'
- $5,365,000 class N 'B'
- $5,365,000 class P 'B-'
- $26,824,359 class Q 'NR'

*N otional amount and interest only.

Classes A-1, A-2, A-3, A-4, A-1A, AM, AJ, B, C and D are offered
publicly, while classes A-2FL, AJ-FL, X, E, F, G, H, J, K, L, M, N
and P are privately placed pursuant to rule 144A of the Securities
Act of 1933.  The certificates represent beneficial ownership
interest in the trust, primary assets of which are 144 fixed-rate
loans having an aggregate principal balance of approximately
$2,145,926,359, as of the cutoff date.


COMMERCIAL MORTGAGE: S&P Lifts Ratings on Class E Certificates
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on three
classes of commercial mortgage pass-through certificates from
Commercial Mortgage Acceptance Corp.'s series 1997-ML1.  
Concurrently, the ratings on three other classes from the same
transaction were affirmed.
     
The upgrades and affirmations reflect Standard & Poor's analysis
of the remaining nondefeased loans in the pool, as well as
increased credit enhancement levels resulting from the liquidation
of the Shilo Inns Hotel portfolio.  The trust received a
$47 million discounted payoff for the Shilo portfolio, resulting
in a net realized loss to the trust of $12.1 million, which was
reflected on the March 15, 2007, remittance report.  The rating
actions were tempered by the decline in the financial operating
performance of three of the six remaining nondefeased loans.
     
As of March 15, 2007, the pool consisted of nine loans with an
outstanding trust balance of $516.6 million, including three loans
(28% of the trust balance) for which the collateral has been
defeased.  Of the six nondefeased loans, three (36%) mature within
the next three months.  In addition, two other nondefeased loans
(21%) have anticipated repayment dates by year-end 2007.
     
Standard & Poor's adjusted net cash flow levels for two of the six
nondefeased loans have increased from the levels at issuance.  The
largest exposure, the Franklin Mills loan, has a trust balance of
$114.3 million (22%) and a whole-loan balance of $127.3 million.  
A 1.7-million-sq.-ft. super-regional outlet mall and an adjacent
314,900-sq.-ft. retail power center known as Liberty Plaza in
Philadelphia, Pennsylvania, secure this loan.  Standard & Poor's
adjusted NCF for the loan has increased 26% from the level at
issuance.  The ARD for this loan is May 5, 2007.    
     
The master servicer, Midland Loan Services Inc., placed this loan
on the watchlist because the sponsor of the loan, The Mills Corp.
(Mills; not rated), a Virginia-based REIT, has disclosed that it
is being investigated by the SEC and plans to restate its
earnings.  On April 3, 2007, Simon Property Group Inc.  
(A-/Stable/--), an Indiana-based REIT, and Farallon Capital
Management LLC, a California-based hedge fund, completed their
acquisition of the Mills Corp.  
     
The American Apartment Communities II, the smallest loan in the
pool (4%), is secured by two multifamily apartment complexes
totaling 456 units in Santa Clara and Mountainview, California
Standard & Poor's adjusted NCF has increased 13% from the level at
issuance.  The ARD maturity is July 1, 2007, and the borrower has
reportedly begun the refinancing process.
     
Copley Place is the third-largest exposure, representing 14% of
the pool balance.  The loan is secured by a 1.2 million-sq.-ft.
mixed-use development in the Back Bay section of Boston,
Massachusetts, consisting of 368,900 sq. ft. of retail
space and 845,300 sq. ft. of office space.  The collateral also
secures a $97.5 million B note held outside of the trust.  The
master servicer reported debt service coverage (DSC) of 1.38x as
of December 2005 and 75% combined occupancy as of March 2006.  
This loan is on the watchlist due to a decline in DSC to 1.38x as
of December 2005 from 3.92x as of December 2004.  The decrease is
attributable to a significant increase in tenant improvements and
capital spending, to $21 million in 2005 from $5.4 million in
2004.  Excluding the extraordinary capital expenditures, Standard
& Poor's adjusted NCF increased 45% from the level at issuance.  
The loan's maturity is Aug. 1, 2007.
     
The three remaining nondefeased loans have seen significant
declines in NCF from the levels at issuance and are discussed
below.
     
The Newton Oldacre McDonald portfolio, which represents 15% of the
pool balance, is on the master servicer's watchlist and is secured
by 18 community shopping centers and two freestanding stores that
are cross-collateralized and cross-defaulted.  The properties,
totaling 1.3 million sq. ft., are located in secondary and
tertiary markets across six southeastern states (Alabama,
Tennessee, Florida, Mississippi, Kentucky, and Louisiana).

Standard & Poor's adjusted NCF has decreased 29% from the level at
issuance.  Combined occupancy was 83% as of December 2006, and DSC
was 0.79x as of September 2006; 12 of the 20 properties reported
DSCs below 1.0x.  At issuance, 12 of the 20 retail centers had
Winn-Dixie stores as anchor tenants.  After Winn-Dixie's
bankruptcy filing in February 2005, three Winn-Dixie stores in
this portfolio closed.  As of year-end 2006, the borrower had not
yet fully leased the vacant anchor space.  The poor performance of
this loan is also attributable to damage to four of the properties
from Hurricane Katrina.  The master servicer indicated that all
repairs have been completed.  The loan's maturity is October 2012.
     
The Brookfield Properties Corp. loan, representing 10% of the pool
balance, is secured by a mixed-use property in the financial
district of Minneapolis, Minnesota.  The property includes the
Dain Bosworth Plaza, a 40-story class A office building totaling
592,950 sq. ft., and the Gaviidae Common Phase II, an enclosed
four-level vertical retail mall totaling 188,900 sq. ft.

Standard & Poor's adjusted NCF has declined 58% from the level at
issuance due to below-market rents in a soft Minneapolis office
market.  Combined occupancy was reported at 91% as of December
2006.  The loan matures in June 2007.

The Ritz Carlton St. Louis Hotel loan (7% of the pool balance) is
secured by a 301-room, full-service, luxury hotel in Clayton,
Missouri.  Due to a soft St. Louis hotel market, reported DSC was
0.51x as of March 2006, and occupancy was 68% as of December 2006.  
Standard & Poor's adjusted NCF has declined 18% from the level at
issuance.  The loan matures in December 2007.
  
                            Ratings Raised
   
                  Commercial Mortgage Acceptance Corp.
             Commercial mortgage pass-through certificates
                            series 1997-ML1

                           Rating
                           ------
                Class    To     From   Credit enhancement
                -----    --     ----   -----------------
                  C      AAA     AA          29.61%
                  D      AA-     BBB         20.58%
                  E      A-      BB+         17.30%

                           Ratings Affirmed
   
                  Commercial Mortgage Acceptance Corp.
             Commercial mortgage pass-through certificates
                            series 1997-ML1
  
                  Class    Rating   Credit enhancement
                  -----    ------   ------------------
                   A-3      AAA          50.15%
                   A-4      AAA          50.15%
                   B        AAA          38.65%
   

                           *N/A-Not applicable.


CREDIT SUISSE: S&P Lifts Rating on Class J Certificates to BB+
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on seven
classes of commercial mortgage pass-through certificates from
Credit Suisse First Boston Mortgage Securities Corp.'s series
2001-CF2.  Concurrently, ratings were affirmed on the remaining
classes from this transaction.
     
The raised and affirmed ratings reflect credit enhancement levels
that provide adequate support through various stress scenarios.  
The upgrades of several senior certificates reflect the defeasance
of 29% of the pool, which includes the recent defeasance of the
Lexington Financial Center ($21.7 million, 3%).
     
As of the March 16, 2007, remittance report, the collateral pool
consisted of 132 loans and two real estate owned assets with an
aggregate balance of $828.7 million, down from 182 loans with a
balance of $1.1 billion at issuance.  The master servicer, Capmark
Finance Inc., provided year-end 2005 and interim 2006 financial
statements for 97% of the pool, which excludes the defeased
collateral.  Based on this information, Standard & Poor's
calculated a weighted average debt service coverage of 1.31x for
the pool, down from 1.47x at issuance.  Four assets
($12.8 million, 2%) are delinquent and are with the special
servicer, also Capmark, while the remaining loans in the pool are
current.  The four assets include two loans totaling $3 million,
which are 90-plus-days delinquent, and two REO assets totaling
$9.8 million.  Appraisal reduction amounts (ARAs) totaling $4.7
million are in effect related to the two REO assets.  To date, the
trust has experienced 14 losses totaling $18.3 million.
     
The top 10 loan exposures secured by real estate have an aggregate
outstanding balance of $290 million (35%).  The weighted average
DSC for the top 10 exposures was 1.33x for year-end 2005, down
from 1.44x at issuance.  The decreased DSC reflects the
significant decline in net cash flow for the largest and second-
largest loans in the pool.  Both loans are on the master
servicer's watchlist and are discussed below.  Standard & Poor's
reviewed property inspections provided by Capmark for all of the
assets underlying the top 10 exposures, and all were characterized
as "good."
     
Capmark reported a watchlist of 36 loans with an aggregate
outstanding balance of $181.5 million (22%).  The largest loan on
the watchlist and in the pool, the First Union Building
($50.3 million, 6%), is secured by a 626,594-sq.-ft. condominium
interest of floors six through 29 in an office building in
Philadelphia.  The master servicer placed this loan on the
watchlist due to low DSC. As of Sept. 30, 2006, the DSC was 0.94x
and occupancy was 95%.
     
The second-largest loan in the pool, 8000 Marina Boulevard
($44.3 million, 5%), is secured by a 193,869-sq.-ft. office
building in Brisbane, California, that was built in 2000.  The
loan appears on the watchlist because of low DSC (0.67x as of
Sept. 30, 2006).  Although the building is 100% occupied, it has
experienced significant rent declines and tenant rollover since
issuance.  This loan was previously with the special servicer.  
The borrower is currently drawing down on a letter of credit to
cover debt service shortfalls.  The letter of credit has a current
balance of $2.7 million, down from $11.3 million at issuance.
     
There are four loans with the special servicer.  The 9666 Building
is the largest asset with the special servicer with a total
exposure of $10.5 million.  The property is a 146,241-sq.-ft.
class B office building in Olivette, Missuori, approximately five
miles west of St. Louis.  The loan was transferred to the special
servicer due to imminent default in November 2004 and became REO
in September 2005.  The property listing was suspended in January
2007 when Capmark pursued leasing interest from two high-credit
tenants to lease a total of approximately 57,000 sq. ft.  The
leases are expected to be signed by the end of April 2007, which
will bring the building's occupancy above 95%.  Once the leases
are signed, the building will be placed back on the market for
sale.  An ARA of $4.3 million is in effect.
     
Northfield Falls MPH is the second-largest asset with the special
servicer with a total exposure of $3.2 million.  The loan is 90-
plus-days delinquent.  It is secured by five mobile home parks,
with 150 total pads, in northern Vermont.  The loan was
transferred to the special servicer in January 2003 because of a
dispute over a partial release.  The borrower requested a partial
release without paying yield maintenance on the corresponding
principal paydown, which Capmark denied.  The borrower responded
by filing litigation against Capmark, which is ongoing.
Foreclosure is in process.  S&P expect losses upon resolution of
this asset.
     
The remaining assets with the special servicer have related total
exposures of less than $1 million.  Camelot Village MHP has a
total exposure of $677,682 and is REO.  The property consists of a
96-pad mobile home park in Tomah, Wisconsin An ARA of $410,970 is
in effect.  Fetzer Drive has a total exposure of $994,270 and is
90-plus-days delinquent.  The loan was transferred to the special
servicer because of payment default.  The loan is secured by a
16-unit multifamily property, built in 1998, in Bloomington,
Illinois.  The borrower has agreed to make payments while a
discounted payment offer is in discussion.
     
Standard & Poor's stressed the loans on the watchlist, along with
other loans with credit issues, as part of its pool analysis.  The
resultant credit enhancement levels support the raised and
affirmed ratings.
   
                         Ratings Raised
   
       Credit Suisse First Boston Mortgage Securities Corp.
          Commercial mortgage pass-through certificates  
                        series 2001-CF2

                      Rating
                      ------
         Class     To        From   Credit enhancement
         -----     --        ----   -----------------
           C       AAA       AA+        15.65%
           D       AA+       AA         14.33%
           E       AA        A+         12.34%
           F       A         A-         10.06%
           G       A-        BBB+        8.38%
           H       BBB       BBB-        6.39%
           J       BB+       BB          3.75%
            
                         Ratings Affirmed
   
        Credit Suisse First Boston Mortgage Securities Corp.
           Commercial mortgage pass-through certificates
                          series 2001-CF2

               Class     Rating   Credit enhancement
               -----     ------   ------------------
                A-3       AAA          26.90%
                A-4       AAA          26.90%
                B         AAA          21.61%
                K         BB-           2.75%
                L         B+            1.63%
                A-X       AAA            N/A
                A-CP      AAA            N/A
                   

                     * N/A-Not applicable.


CROWN CLO: S&P Puts Positive Watch on Class E Certificates' Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on the class
B, C, D, and E notes issued by Crown CLO 2002-1, a static pool
hybrid cash flow/synthetic balance sheet CLO transaction, on
CreditWatch with positive implications.  At the same time, the
'AAA' ratings on the class A-1 and A-2 notes were withdrawn after
a complete paydown.
     
The CreditWatch placements reflect factors that have positively
affected the credit enhancement available to support the notes
since origination.  These factors primarily include an increase in
the level of overcollateralization available to support the rated
notes caused by the full paydowns of the class A-1 and A-2 notes
and the partial paydowns of the class B, D, and E notes.
     
Since Crown CLO 2002-1 is a static pool CDO, all principal
proceeds received off of the assets are used to pay down the
liabilities from inception.
     
In addition, the transaction has a feature in the interest
waterfall that directs excess spread to pay down the principal
balances of the class D and E notes on a pro rata basis before any
interest is distributed to equity, until these note balances have
been paid in full.  Since origination, the class D and E note
balances have been reduced by $4.290 million and $1.103 million,
respectively.
    
              Ratings Placed on Creditwatch Positive
     
                         Crown CLO 2002-1

                                  Rating
                                  ------
                  Class    To               From
                  -----    --               ----
                    B      AA/Watch Pos      AA
                    C      A+/Watch Pos      A+
                    D      BBB/Watch Pos     BBB
                    E      BB+/Watch Pos     BB+
   
                         Ratings Withdrawn
    
                         Crown CLO 2002-1

                                  Rating
                                  ------
                       Class    To       From
                       -----    --       ----
                         A      NR        AAA
                         B      NR        AAA
    

                            * NR-Not rated.


DAVITA INC: Improved Credit Figures Cue Fitch's Positive Outlook
----------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook for DaVita Inc. to
Positive from Stable.  In addition, Fitch affirms DaVita's
ratings:

    - Issuer Default Rating (IDR) 'B+'
    - Bank credit facility 'BB/RR2'
    - Senior subordinated notes 'B-/RR6'
    - Senior unsecured notes 'B/RR5'

The Positive Outlook reflects DaVita's improved credit and
operating statistics and Fitch's expectation that leverage will
continue to decline in 2007.  Although credit metrics are
improving, the company still has significant leverage.  In
addition, the company is facing some uncertainty surrounding its
earnings from physician-prescribed pharmaceuticals, particularly
Epogen, which represented approximately 25% of total dialysis
revenues in 2006.  In addition, the company's narrow focus and
concentration of revenues from Medicare make it susceptible to
regulatory changes.  A future ratings upgrade depends on continued
debt reduction and no significant changes in operating performance
as a result of EPO utilization or other events.

DaVita's key credit metrics improved significantly during 2006, as
leverage (total debt/EBITDA) decreased to 4 times (x) at the end
of 2006 from 6.85x at the end of 2005.  This reduction was driven
by both a decrease in debt (total debt reduced to $3.8 billion
from $4.2 billion) and an increase in EBITDA (increased to $937
million from $607 million).  In addition, DaVita was able to
improve the terms and pricing of its credit facility during the
first quarter of 2007.  Fitch notes that the company has
established a track record of prepaying maturities and focusing on
debt reduction as it did during 2006.  Fitch expects the company
to continue reducing its debt ahead of scheduled maturities in
2007.

DaVita has also demonstrated solid operating performance and
continued growth in 2006.  The integration of the DVA Renal
Healthcare, Inc. (DVA, formerly known as Gambro Healthcare, Inc.)
acquisition is on-target, and contributed significantly to the 64%
revenue growth reported in 2006.  At the same time, non-acquired
treatment growth was 4.8% for the year, 4.4% excluding the impacts
of Hurricane Katrina in 2005.  Fitch believes this is greater than
market growth and demonstrates the company has not been distracted
by the integration of the DVA facilities.  In addition, EBITDA
grew 54% in 2006, largely driven by the acquisition, which has
added scale to the business.  Finally, the acquisition removed a
significant competitor in the market, leaving the U.S. market
largely a two-player oligopoly, with Fresenius and DaVita combined
capturing roughly 65% of the market.

Although the company's operating and credit statistics have
improved, Fitch is concerned about the uncertainty surrounding
utilization and reimbursement procedures for pharmaceuticals.
Physician-prescribed pharmaceuticals such as EPO, vitamin D
analogs, and iron supplements represented 30% of DaVita's total
dialysis revenues in 2006 and 35% in 2005, with EPO alone
accounting for 25% of revenues in both 2005 and 2006.  EPO is a
biotech drug (marketed by Amgen) that stimulates red blood cell
production in anemia patients, a condition most end-stage renal
disease (ESRD) patients experience.  Recent safety concerns
surrounding EPO and ongoing regulatory review could negatively
affect DaVita in 2007 and beyond.  In March, the FDA decided to
add a 'black box' warning to EPO and other erythropoiesis-
stimulating agents (including Aranesp and Procrit), related to
concerns of increased risk of heart attack, stroke and other
adverse events that have been detected in several studies,
primarily related to use of the drugs in higher-than-recommended
levels or in off-label use (treatment of anemia associated with
chronic renal failure is not considered off-label).  In addition,
the Centers for Medicare & Medicaid Services has been criticized
for using reimbursement policies inconsistent with FDA guidelines.  
These events are the latest in a series of regulatory commentary
and review of pharmaceutical processes at dialysis providers and
may result in a reduction in EPO utilization or further changes to
reimbursement procedures.  Fitch notes these events represent
increased risk to the company and will monitor the situation for
new developments.

Aside from recent EPO developments, Fitch notes several positive
trends in government reimbursement, which represents approximately
65% of DaVita's total revenues.  On April 1, 2007, Medicare
implemented a 1.6% rate increase for dialysis payments, which is
the third straight year of increases at this level.  Dialysis
facilities are unique in that they do not receive automatic annual
updates from Medicare to adjust for inflation, as do hospitals and
other providers.  Recently, the Kidney Care Quality and Education
Act of 2007 was introduced in Congress which would, among other
things, implement a three-year quality based annual update.
Although approval is uncertain, Fitch views the attention to the
issue and the implementation of updates in recent years as
positive signs for the industry.

Another proposed change that could have even greater impact in the
industry is the potential extension of the Medicare Secondary
Payer (MSP) provision.  This would extend the amount of time a
patient remains covered by private insurance before Medicare
becomes the primary payer from 33 months to 60 months.  As private
insurance pays at substantially higher rates than Medicare (Fitch
estimates at least 2 times greater), this could have a significant
effect on both revenues and profitability.  The extension was part
of President Bush's 2008 budget proposal.  Although significant
uncertainty surrounds this proposal, Fitch believes some extension
of the MSP provision may occur in the near-to-intermediate term.
Fitch believes the impact of this change would be mitigated by
potential changes in private reimbursement rates but would have a
net positive effect.

In contrast to Medicare, managed care reimbursement trends are
expected to be less favorable in 2007. Private rates have been
generally favorable, and were responsible for some of the
operating improvement in 2006.  However, Fitch expects that
consolidation in the industry and increased focus from insurers
should pressure rates in the latter part of 2007.  Overall impact
for DaVita should be mitigated by the fact that private payers
represent roughly 35% of total dialysis revenues.

DaVita made several changes to its capital structure in the first
quarter of 2007.  DaVita reduced amounts outstanding on its Term
Loan B with the proceeds from the issuance of $400 million of
6.625% senior unsecured notes due 2013.  The notes were issued
under its existing indenture, bringing the total amount of such
notes outstanding to $900 million.  In conjunction with the
transaction, DaVita amended its existing credit agreement.  
Pricing on the Term Loan B was reduced by 50 basis points (from
LIBOR+200 to LIBOR+150); although, a 1% prepayment penalty was
added in the event of additional refinancing of the Term Loan B
prior to Feb. 23, 2008.  In addition, several covenants in the
agreement were relaxed.  Specifically, the mandatory payments
amounts were reduced, restricted payments (including growth
capital expenditures) were eliminated when leverage is below
3.5:1, the assets that can be held by non-guarantor subsidiaries
was increased, and permitted investments and debt levels were
increased.  Finally, the amount of the accordion was increased to
$750 million from $500 million.  The accordion can be used for
incremental Term Loan and/or revolving credit amounts. Liquidity
at Dec. 31, 2006, comprised $310.2 million in cash and equivalents
and $200 million in availability on the revolving credit facility,
net of $50 million in outstanding letters of credit.


DAY INT'L: Flint Group Merger Talks Cue S&P's Developing Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' corporate credit
rating on Dayton, Ohio-based Day International Group Inc. on
CreditWatch with developing implications.

The CreditWatch listing follows the announcement earlier today by
Day that it is in discussions regarding a potential sale of the
company to Flint Group.  Although a purchase agreement has not
been reached yet and ultimate completion and timing of such a
transaction remain uncertain at this stage, Standard & Poor's
believes that Day's management is contemplating certain strategic
developments that could affect the company's credit rating.
     
The 'B' bank loan rating and '2' recovery rating on Day's first-
lien revolving and term loan facilities, as well as the 'CCC+'
bank loan rating and '5' recovery rating on Day's second-lien term
loan facility, were affirmed and not placed on CreditWatch, as S&P
expect that, should an acquisition of Day occur, the bank facility
would be replaced at closing given change of control language in
the bank facilities.
     
The 'CCC' rating on the company's senior exchangeable preferred
stock was also affirmed, as the company may at its option redeem
the preferred stock for cash, and this instrument would likely be
redeemed upon a change of control.
     
Depending on future developments, including a change in the
ownership or in the capital structure of the company, Standard &
Poor's could either lower or raise Day's corporate credit rating,
affirm all ratings, or should all debt be retired, Day's rating
could be withdrawn.


DIMENSIONS HEALTH: Fitch Cuts Rating on $74.5 Mil. Bonds to CC
--------------------------------------------------------------
Fitch Ratings has downgraded and removed from Rating Watch
Evolving Prince George's County, Maryland's approximately
$74.5 million project and refunding revenue bonds, series 1994, to
'CC' from 'B-'.  The bonds are issued on behalf of Dimensions
Health Corporation and Subsidiaries.

The downgrade to 'CC' is due to:

- The failure of Maryland's state legislature to pass  
   legislation by April 9 authorizing the proposed permanent
   financial bailout of Dimensions that included creating a
   Prince George County Hospital Authority, which would have
   assumed 100% of Dimensions' long-term debt and pension
   liability and would have had the authority to levy a county
   tax;

- The failure of Dimensions to merge or be acquired over the last
   12-plus months under the outstanding request for
   offerors/expressions of interest on the county's hospital
   assets, including those operated by Dimensions; and

- Further deterioration in Dimensions' operational and financial
   profiles, including extremely weak balance sheet indicators
   without governmental support.

As a result, Dimensions' Board of Directors has scheduled an
emergency board meeting for April 16, at which time it will decide
between voluntarily relinquishing its rights to manage and operate
the hospitals under the long-term operating lease with the county
or filing bankruptcy.  If Dimensions' Board approves relinquishing
operations, Dimensions' management is required to give the state
45 to 60-days notice of such. Dimensions' management advises that,
on April 10, Maryland's governor agreed to set-aside $20 million
to cover necessary orderly closing costs if Dimensions' Board
decides to no longer operate the hospitals.  The downgrade also
reflects the likelihood that Dimensions will receive any short-
term governmental (county or state) support for continued
operations.

Because of operating subsidies and grants received from the county
and state for the period from March 2006 through March 2007,
Dimensions reported an operating margin of negative 5.5%, 28 days
cash on hand, 2.3 times (x) cushion ratio and 26% cash to debt,
based upon unaudited results for the eight-month period ending
Feb. 28, 2007.

As of Dec. 31, 2006, Dimensions' debt service reserve fund was
fully funded at approximately $8.6 million.  Dimensions continues
to deposit approximately $511.5 thousand into its sinking fund
account on a monthly basis.  Dimensions' bonds are secured with a
gross revenue pledge, including all monies attributable to the
operations of projects financed by the series 1994 bonds, as long
as the operating lease and other bond documents remains operative
and Dimensions is not in default under the same.


DRESSER INC: S&P Junks Rating on Proposed $750 Million Facilities
-----------------------------------------------------------------
Standard and Poor's Ratings Services affirmed its 'B' corporate
credit rating on oilfield products manufacturer Dresser Inc.,
based on the expectation that the company's debt leverage will
improve, following its acquisition, to levels consistent with the
ratings over the medium term.  The outlook is negative.  At the
same time, the ratings on Dresser were removed from CreditWatch
with developing implications, where they were placed on March 12,
2007.
     
Standard & Poor's also assigned its 'B' rating and '2' recovery
rating (indicating the expectation of substantial (80%-100%)
recovery of principal in the event of a payment default) to
Dresser's proposed $1.3 billion first-lien bank facilities, and
its 'CCC+' rating and '5' recovery rating (indicating the
expectation of negligible (0%-25%) recovery of principal in the
event of a payment default) to Dresser's proposed $750 million
second-lien bank facilities.
     
On March 12, 2007, private equity firms Riverstone Holdings LLC,
First Reserve Corp., and Lehman Brothers Co-Investment Partners
announced that they had signed an agreement to purchase Dresser.  
The purchase is being financed with $1.15 billion of first-lien
debt, $750 million of second-lien debt, and $500 million in equity
from the financial sponsors.  The $150 million revolver will
remain undrawn as of closing, although it will be used to support
approximately $56 million of outstanding LOCs.  At the close of
the transaction, debt to 2006 EBITDA is expected to be in excess
of 7.5x, which is weak for the rating.
     
Pro forma for the transaction, Dresser will have $2.13 billion in
debt, adjusted for operating leases and postretirement benefit
obligations.
      
"The ratings on Dresser reflect concerns associated with its
highly leveraged financial profile, marginal fixed-charge
coverage, and ongoing accounting issues," said Standard & Poor's
credit analyst Aniki Saha-Yannopoulos.  "These weaknesses are only
partially offset by its well-established and diverse product
offerings and by the large aftermarket services component of its
revenues," Ms. Saha-Yannopoulos continued.
     
The outlook is negative.  The marginal credit measures make
Dresser susceptible to a downgrade in case of any operational
setbacks or if financial performance deteriorates.  In addition,
Standard & Poor's has lingering concerns about unresolved
financial controls and reporting issues that weigh on the ratings.  
An outlook revision to stable is contingent on improved credit
measures, decreased leverage, and audited financial statements.


EMAGIN CORP: Restates Financial Statements for Qtr. Ended Sept. 30
------------------------------------------------------------------
Emagin Corp. filed amended financial statements for the third
quarter ended Sept. 30, 2006, with the Securities and Exchange
Commission on April 2, 2007, to correct an error in the valuation
of the derivative liability and debt discount associated with the
warrants issued on July 31, 2006, when the company entered in
several Note Purchase Agreements.  

The Black-Scholes calculation used to determine the fair values of
the derivative liability and debt discount initially used the 18
month life of the Notes as the term.  The fair value of the
warrants has been amended to the warrant life of 5 years and a
corresponding risk free interest rate which has resulted in a
higher valuation of the derivative liability and debt discount.

The restated statements reflect the increase of approximately
$1.3 million of additional derivative liability and approximately
$1.2 million of unamortized debt discount.  In addition, interest
expense increased approximately $155,000 and the gain on warrant
derivative liability increased approximately $80,000, resulting in
an increase of net other expense of approximately $75,000.  The
company has also corrected the presentation of the short-term and
long-term portions of the Notes.

The corrections showed:
                            
                                                  As Originally
                                  As Restated         Filed

Interest Expense                     $509,000         $354,000
Net Loss                           $3,769,000       $3,694,000
Current portion of debt            $1,241,000       $2,963,000
Derivative liability - warrants    $3,423,000       $2,107,000
Long-term debt                     $1,792,000       $1,311,000
Accumulated Deficit             ($179,326,000)   ($179,251,000)
Total shareholders' deficit         ($615,000)       ($540,000)

Full-text copies of the company's restated financial statements
for the third quarter ended Sept. 30, 2006, are available for free
at http://researcharchives.com/t/s?1d1d

Full-text copies of the company's previously reported consolidated
financial statements for the third quarter ended Sept. 30, 2006
are available for free at http://researcharchives.com/t/s?1688   

                        Going Concern Doubt

As reported in the Troubled Company Reporter on July 27, 2006,
Eisner LLP, in New York, raised substantial doubt about eMagin
Corp.'s ability to continue as a going concern after auditing the
company's consolidated financial statements for the year ended
Dec. 31, 2005.  The auditor pointed to the company's recurring
losses from operations, which it believes will continue through
2006.

                           About eMagin

Headquartered in Bellevue, Washington, eMagin Corp. (AMEX: EMA)
-- http://www.emagin.com-- manufactures and markets virtual   
imaging products and information technology softwares.  In
addition, eMagin offers engineering support, as well as various
support products, including developer kits and personal computer
interface kits.  The company offers its products to OEMs in the
military, industrial, medical, and consumer market sectors through
direct technical sales in North America, Asia, and Europe.


EQUITY ONE: Prices $150 Million of Unsecured Notes Offering
-----------------------------------------------------------
Equity One Inc. has priced a $150 million offering of unsecured
notes due 2017.  The notes were priced at 99.9% of par value with
a coupon of 6%. Interest on the notes is payable semi-annually on
March 15 and September 15, with the first payment due and payable
on Sept. 15, 2007.

Equity One expects to use the net proceeds to repay amounts
outstanding under its unsecured credit facility and general
corporate purposes, including future acquisitions, redevelopments
and developments.  Settlement is scheduled for April 18, 2007.

The notes will be sold to qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933 and
outside the United States in compliance with Regulation S.  The
notes have not been registered under the Securities Act of 1933,
or any state securities laws, and unless so registered, may not be
offered or sold in the United States except pursuant to an
exemption from the registration requirements of the Securities Act
of 1933 and applicable state laws.

                         About Equity One

Headquartered in North Miami Beach, Florida, Equity One Inc.
(NYSE:EQY)  -- http://www.equityone.net/-- is a real estate  
investment trust that principally acquires, renovates, develops
and manages neighborhood and community shopping centers anchored
by national and regional supermarket chains and other necessity-
oriented retailers such as drug stores or discount retail stores.  
As of Dec. 31, 2006, the company owned or had interests in 179
properties consisting of 166 shopping centers comprising
approximately 17.9 million square feet, six development parcels
and seven non-retail properties.

                         *     *     *

As reported in the Troubled Company Reporter on Jan 16, 2007,
Standard & Poor's Ratings Services lowered its rating on the class
B-2 mortgage-backed security issued by Equity One Mortgage Pass-
Through Trust 2002-3 to 'BB' from 'BBB' and placed it on
CreditWatch with negative implications.


FIRST UNION: Moody's Affirms Junk Rating on Class N Certificates
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of five classes and
affirmed the ratings of 11 classes of First Union National Bank
Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2002-C1:

    - Class A-1, $66,501,160 affirmed at Aaa
    - Class A-2, $430,663,000, affirmed at Aaa
    - Class IO-I, Notional, affirmed at Aaa
    - Class IO-II, Notional, affirmed at Aaa
    - Class B, $26,402,000, affirmed at Aaa
    - Class C, $32,774,000, upgraded to Aaa from Aa3
    - Class D, $9,104,000, upgraded to Aa2 from A2
    - Class E, $8,194,000, upgraded to Aa3 from A3
    - Class F, $12,746,000, upgraded to A3 from Baa2
    - Class G, $10,014,000, upgraded to Baa2 from Baa3
    - Class H, $14,567,000, affirmed at Ba1
    - Class J, $14,566,000, affirmed at Ba2
    - Class K, $5,463,000, affirmed at Ba3
    - Class L, $5,462,000, affirmed at B1
    - Class M, $7,283,000, affirmed at B2
    - Class N, $3,642,000, affirmed at Caa1

As of the March 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 9.8%
to $657.1 million from $728.3 million at securitization.  The
Certificates are collateralized by 99 mortgage loans ranging in
size from less than 1.0% to 5.0% of the pool with the top 10 loans
representing 32.5% of the pool.  Sixteen loans, representing 22.3%
of the pool, have defeased and are collateralized by U.S.
Government securities.

Four loans have been liquidated from the pool resulting in
aggregate realized losses of approximately $6.7 million.  Two
loans, representing 0.8% of the pool, are in special servicing.
Moody's estimates aggregate losses of approximately $2.4 million
for the specially serviced loans.  Twenty-two loans, representing
19.0% 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 79.0% and 50.0%, respectively, of the pool.
Moody's loan to value ratio is 83.8%, compared to 88.7% at Moody's
last full review in September 2005 and compared to 89.9% at
securitization.  Moody's is upgrading Classes C, D, E, F and G due
to defeasance and improved overall pool performance.

The top three loans represent 12.8% of the pool. The largest loan
is the Wilshire Union Center Loan ($33.0 million -- 5.0%), which
is secured by a 215,500 square foot power center located in the
Westlake neighborhood of Los Angeles, California.  The property
was 100.0% occupied as of September 2006, the same as last review.
Moody's LTV is 86.5%, the same as at last review.

The second largest loan is the Promenade Loan ($26.2 million --
4.0%), which is secured by a 352,000 square foot power center
located in Garden Grove, California, a suburb of Los Angeles.  The
property was 94.0% occupied as of January 2007, the same as at
last review.  Financial performance has improved due to increased
revenue.  Moody's LTV is 73.0%, compared to 81.0% at last review.

The third largest loan is the 60 Madison Avenue Loan ($24.7
million - 3.8%), which is secured by a 193,000 square foot Class B
office building located in the East Midtown South submarket of New
York City.  The property was 80.0% leased as of December 2006,
compared to 88.0% at last review.  Moody's LTV is 96.7%, compared
to 98.5% at last review.


FOAMEX INT'L: Dec. 31 Balance Sheet Upside-Down by $396.4 Million
-----------------------------------------------------------------
Foamex International Inc.'s balance sheet as of Dec. 31, 2006,
showed $396.4 million total stockholders' deficit, resulting from
$564.6 million total assets and $961 million total liabilities.  
The company's accumulated deficit as of Dec. 31, 2006, stood at
$432.7 million.

The company reported a $12.3 million net income on $1.4 billion
net sales for the year ended Dec. 31, 2006.  It had a $56.2
million net loss on $1.3 billion net sales for the comparable
period ended Jan. 1, 2006.

Gross profit in 2006 was $207.3 million, as compared with gross
profit of $128.7 million in 2005.  Selling price increases
implemented in the fourth quarter of 2005 allowed the company to
recover increases in raw material costs that averaged about 35%
since 2005, plus previously unrecovered raw material cost
increases.  In addition, operating efficiencies and yield
improvements contributed to higher margins in 2006.  Gross profit
was reduced by asset impairment charges of $1.6 million in 2006
and $15.2 million in 2005.

Income from operations in 2006 was $120.1 million, increasing
$78.6 million from $41.5 million reported in 2005 primarily due to
the increased gross profit.  Selling, general and administrative
expenses were essentially unchanged from 2005 as the accrual of
incentive compensation under a plan approved by the Bankruptcy
Court on Oct. 30, 2006, was offset by lower professional fees and
reduced bad debt expense.  The 2006 period included $7.9 million
of restructuring charges related to the closure of manufacturing
facilities, while the 2005 period included a $29.7 million gain
from the sale of the company's rubber and felt carpet cushion
businesses and goodwill impairment charges of $35.5 million.

                  Liquidity and Capital Resources

Cash and cash equivalents were $6 million at Dec. 31, 2006
compared with $7.4 million at Jan. 1, 2006.  Working capital at
Dec. 31, 2006, was $24 million and the current ratio was 1.08 to 1
compared to negative working capital at Jan. 1, 2006, of $19.4
million and a current ratio of 0.95 to 1.

In order to finance the company's Reorganization Plan, Foamex L.P.
entered into new senior secured credit facilities on Feb. 12,
2007, which provided for aggregate maximum borrowings of up to
$775 million.

In addition, on Jan. 4, 2007, the company offered rights to
existing stockholders to purchase 2.506 shares of its common stock
for each share of common stock held as of Dec. 29, 2006, and
holders of preferred stock as of the same date were offered rights
to purchase 250.6 shares of common stock for each preferred share
held, in each case for $2.25 per share.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1d15

                    About Foamex International

Headquartered in Linwood, Pennsylvania, Foamex International Inc.
(FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for  
bedding, furniture, carpet cushion and automotive markets.  The
company also manufactures polymers for the industrial, aerospace,
defense, electronics and computer industries.  

The company and eight affiliates filed for chapter 11 protection
on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05-
12693).  Attorneys at Paul, Weiss, Rifkind, Wharton & Garrison
LLP, represent the Debtors in their restructuring efforts.  
Houlihan, Lokey, Howard and Zukin and O'Melveny & Myers LLP are
advising the ad hoc committee of Senior Secured Noteholders.  
Kenneth A. Rosen, Esq., and Sharon L. Levine, Esq., at Lowenstein
Sandler PC and Donald J. Detweiler, Esq., at Saul Ewings, LP,
represent the Official Committee of Unsecured Creditors.  As of
July 3, 2005, the Debtors reported $620,826,000 in total assets
and $744,757,000 in total debts.  On Feb. 2, 2007, the Court
confirmed the Debtors' Second Amended Joint Plan of
Reorganization.  The Plan of Reorganization of Foamex
International Inc. has become effective and the company has
successfully emerged from chapter 11 bankruptcy protection on
Feb. 12, 2007.

                           *     *     *

As reported in the Troubled Company Reporter on Feb. 16, 2007,
Standard & Poor's Ratings Services raised its corporate credit
rating on Linwood, Penn.-based Foamex L.P. to 'B' from 'D',
following the company's emergence from bankruptcy on Feb. 12,
2007.  S&P affirmed all other ratings.  The outlook is stable.


FOREST DEVELOPMENT: Case Summary & 16 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Forest Development, L.L.C.
        7656 West Sahara Avenue, Suite 130
        Las Vegas, NV 89117

Bankruptcy Case No.: 07-11998

Chapter 11 Petition Date: April 12, 2007

Court: District of Nevada (Las Vegas)

Debtor's Counsel: Matthew L. Johnson, Esq.
                  Matthew L. Johnson & Associates, P.C.
                  8831 West Sahara Avenue
                  Las Vegas, NV 89117
                  Tel: (702) 471-0065
                  Fax: (702) 471-0075

Total Assets: $7,099,254

Total Debts:  $6,207,310

Debtor's 16 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Vestin Mortgage                  residence-          $3,500,000
8379 West Sunset Road            unoccupied
Las Vegas, NV 89113              148 Forest Valley
                                 Court (blanket
                                 lien of $3,500,000
                                 on all 6 parcels
                                 to Vestin Mortgage
                                 and $300,000 to
                                 Allstate); value
                                 of security:
                                 $2,200,000

Barbara Orcutt                   loans to keep       $2,039,417
148 Forest Lane                  company
Las Vegas, NV 89124              operating-(to be
                                 credited towards
                                 purchase of
                                 property)

Allstate Mortgage                residence-            $300,000
3910 Pecos McCleod,              unoccupied
Suite C170                       148 Forest Valley
Las Vegas, NV 89121              Court (blanket
                                 lien of $3,500,000
                                 on all 6 parcels
                                 to Vestin Mortgage
                                 and $300,000 to
                                 Allstate); value
                                 of security:
                                 $2,200,000

Nevada Investment and            construction-         $100,000
Development, Inc.                mechanic's lien
                                 filed on vacant
                                 located at 152
                                 Forest Valley
                                 Court and 148
                                 Forest Valley
                                 Court

                                 contraction            $97,917
                                 retainer-
                                 mechanic's lien
                                 filed on vacant
                                 located at 156
                                 Forest Valley
                                 Court, 135
                                 Forest Valley and

K.M.F. Construction, Inc.        construction           $55,570
                                 services-recorded
                                 mechanic's lien
                                 against properties
                                 located at 148
                                 Forest Valley
                                 Court and 152
                                 Forest Valley
                                 Court on November
                                 17, 200

Mel Green                        plans/work             $52,934
                                 to buildings at
                                 Mt. Charleston
                                 property

Volvo Rents                      forklift rental        $12,500
5255 South Valley View Drive
Las Vegas, NV 89118

Ramon Chavez                     wages                  $10,000

Clark County Treasurer           property taxes          $6,754

Avanti Masonry Supply            masonry supplies        $6,165

E&S Plumbing                     plumbing supplies       $6,000

Eduardo Pacheco                  wages                   $3,800

Manring Residential Heating      heating/air             $2,900
& Air                            conditioning

Ace Fire Systems                 fire sprinkler          $2,760
                                 system

Kummer Kaempfer Bonner           legal fees              $2,157
Renshaw Ferrario

Classic Door & Trim Co., Inc.    doors                   $1,539


GE CAPITAL: Moody's Holds Low-B Ratings on Five Certificates
------------------------------------------------------------
Moody's Investors Service upgraded the ratings of three classes
and affirmed the ratings of 13 classes of GE Capital Commercial
Mortgage Corporation, Commercial Mortgage Pass-Through
Certificates, Series 2002-2:

    - Class A-2, $218,906,281, affirmed at Aaa
    - Class A-3, $462,687,000, affirmed at Aaa
    - Class X-1, Notional, affirmed at Aaa
    - Class X-2, Notional, affirmed at Aaa
    - Class B, $35,227,000, affirmed at Aaa
    - Class C, $12,147,000, affirmed at Aaa
    - Class D, $31,583,000, upgraded to Aaa from Aa2
    - Class F, $9,717,000, upgraded to Aa3 from A2
    - Class G, $10,933,000, upgraded to A2 from A3
    - Class H, $13,362,000, affirmed at Baa2
    - Class J, $19,436,000, affirmed at Ba1
    - Class K, $18,221,000, affirmed at Ba2
    - Class L, $7,288,000, affirmed at Ba3
    - Class M, $4,859,000, affirmed at B1
    - Class N, $14,577,000 affirmed at B2
    - Class O, $4,859,000, affirmed at Caa1

As of the March 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 7.0%
to $903.7 million from $971.8 million at securitization.  The
Certificates are collateralized by 109 loans ranging in size from
less than 1.0% to 4.3% of the pool, with the top 10 loans
representing 32.3% of the pool.  Fifteen loans, representing 19.5%
of the pool, have defeased and are collateralized by U.S.
Government securities.

The pool has experienced a realized loss of approximately
$157,000.  Currently there are no loans in special servicing.
Twenty-four loans, representing 18.2% of the pool, are on the
master servicer's watchlist.

Moody's was provided with full-year 2006 and partial-year 2005
operating results for 99.0% and 70.6%, respectively, of the pool's
non-defeased loans.  Moody's weighted average loan to value ratio
("LTV") is 86.2%, compared to 89.6% at Moody's last full review in
March 2006 and compared to 89.7% at securitization.  Moody's is
upgrading Classes D, F and G due to defeasance, increased credit
support and improved overall pool performance.

The top three loans represent 12.2% of the pool. The largest loan
is the Town Center at the Waterfront Loan ($39.2 million - 4.3%),
which is secured by a 374,000 retail center located approximately
5 miles southeast of downtown Pittsburgh in Homestead,
Pennsylvania.  The property was 98.8% occupied as of June 2006,
essentially the same as at last review and at securitization.
Moody's LTV is 76.1%, compared to 80.6% at last review.

The second largest loan is the 584 Broadway Loan ($38.5 million -
4.3%), which is secured by two adjacent Class B office buildings
totaling 226,000 square feet.  The buildings are located in the
Soho submarket of New York City.  The properties were 98.0%
occupied as of December 2006, compared to 96.0% at last review.
Moody's LTV is 72.2%, compared to 75.5% at last review.

The third largest loan is the Town & Country Village Loan ($32.4
million - 3.6%), which is secured by a 235,000 square foot
grocery-anchored retail center located in Sacramento, California.
The center was 91.2% occupied as of June 2006, essentially the
same as at last review.  Moody's LTV is 89.2%, compared to 91.8%
at last review.


GUAM POWER: S&P Revises Outlook on BB+ Rating to Stable
-------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on the
'BB+' standard long-term rating and underlying rating on Guam
Power Authority's revenue debt to stable from negative due to the
authority's improved operational and fiscal performance over the
past two years.
     
The rating service simultaneously affirmed the ratings on the
authority's revenue debt.
     
The speculative-grade ratings include Guam Power Authority's
more-efficient use, and greater availability, of its base-load
assets, allowing management to reduce its dependence on the
costlier diesel-fired peaking units; Guam Public Utilities
Commission's continued support under the Consolidated Commission
on Utilities' governance structure that oversees both Guam Power
Authority and Guam Waterworks Authority; and Guam's (B/Watch Neg)
rebounding economy due to increased tourism and tourism-related
expansions, as well as the territory's long-term prospects because
it stands to gain as many as 8,000 Marines and 9,000 dependents
from Okinawa, Japan by 2014.
     
The rating remains constrained by uncertainty regarding the
general government's ability to address a series of long-term
liabilities owed to the authority.
     
"It is our belief that the authority's financial performance is
sustainable, especially given the improvements to its operations
and regulatory relationship, as well as those to Guam's economy,"
said Standard & Poor's credit analyst Theodore Chapman.  "An
investment-grade rating is still precluded by the uncertainty over
whether Guam will be able to pay the authority all the money it
owes and what kind of effect that might have on the authority's
ability to address its identified capital requirements."
     
Fiscal 2006 unaudited results indicate continued improvements to
the authority's finances, including about 1.5x annual debt service
coverage.  On-balance-sheet cash and cash equivalents of $16.8
million was equivalent to a modest 24 days' cash on hand, but this
represents a large underrecovered position on fuel costs.  Guam
Public Utilities Commission recently approved an 11.87% levelized-
energy-adjustment-clause-related increase in January 2007 that
should help cash flows improve through the June 30, 2007,
effective period.  Unaudited fiscal 2006 results follow audited
fiscal 2005 results that exhibited very similar figures.  This is
a marked improvement from fiscal 2003, when coverage was below 1x.  
Management's maintenance of reasonable net margins and liquidity
are important given that it has identified more than $650 million
of capital projects over the next 10 years.
     
Guam accounted for 15.4% of the authority's total fiscal 2005
revenues.  While Guam has thus far been able to continue to pay
its current bills for utility services, there remains uncertainty
as to whether or not Guam will be able to continue to make
substantial progress on its accounts payable and promissory notes
to the authority.  The U.S. Supreme Court made this even more
uncertain when, on March 28, 2007, it ruled that a proposed Guam
deficit bond-financing package -- part of which would have
addressed the liabilities owed to the authority -- would have
exceeded the territory's debt cap.
     
The rating action affects roughly $380 million of revenue bonds
outstanding.


HANOVER COMPRESSOR: Calls for $29.9 Mil. Notes Redemption on May 8
------------------------------------------------------------------
Hanover Compressor Company disclosed the call for redemption on
May 8, 2007, of $29,897,000 aggregate principal amount of the
Convertible Junior Subordinated Debentures Due 2029.

All of the Debentures are owned by Hanover Compressor Capital
Trust and the Trust is required to use the proceeds received from
such redemption to redeem $29 million aggregate liquidation amount
of its 7-1/4% Convertible Preferred Securities and $897,000
aggregate liquidation amount of its 7-1/4% Convertible Common
Securities.  Hanover owns all of the Common Securities of the
Trust.

The Preferred Securities to be redeemed will be selected in
accordance with the applicable procedures of The Depository Trust
Company for partial redemptions.

Prior to 5:00 p.m., Eastern Time, on May 7, 2007, holders may
convert their Preferred Securities called for redemption on the
basis of one Preferred Security per $50 principal amount of
Debentures which will then be immediately converted into shares of
Hanover Compressor Company common stock at a price of $17.88 per
share, or 2.80 shares of Hanover common stock per $50 principal
amount.  Cash will be paid in lieu of fractional shares.

Alternatively, holders may have their Preferred Securities that
have been called for redemption, redeemed on May 8, 2007.  Upon
redemption, holders will receive $50 for each of their Preferred
Securities, plus accrued and unpaid distributions thereon from
March 15, 2006 up to but not including May 8, 2007.  Any of the
Preferred Securities called for redemption and not converted on or
before 5:00 p.m., Eastern Time, on May 7, 2007, will be
automatically redeemed on May 8, 2007 and no further distributions
will accrue.

Holders of the Preferred Securities should complete the
appropriate instruction form for redemption or conversion, as
applicable, pursuant to The Depository Trust Company's book-entry
system and follow such other directions as instructed by The
Depository Trust Company.

                     About Hanover Compressor

Headquartered in Houston, Texas, Hanover Compressor Company,
(NYSE: HC) -- http://www.hanover-co.com/-- rents and repairs   
compressors and performs natural gas compression services for oil
and gas companies.  The company's subsidiaries also provide
service, fabrication, and equipment for oil and natural gas
processing and transportation applications.  It has locations in
India, China, Indonesia, Japan, Korea, Taiwan, the United Kingdom,
and Vietnam, among others.

                           *     *     *

As reported in the Troubled Company Reporter on Feb. 8, 2007,
Standard & Poor's Ratings Services placed the 'BB-' corporate
credit ratings on oilfield service company Hanover Compressor Co.
and its related entity Hanover Compression L.P. on CreditWatch
with positive implications.


JOSE SANCHEZ-PENA: Case Summary & 19 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Jose R. Sanchez-Pena
        550 Newark Avenue
        Jersey City, NJ 07306
        Tel: (201) 795-0205

Bankruptcy Case No.: 07-15054

Chapter 11 Petition Date: April 12, 2007

Court: District of New Jersey (Newark)

Debtor's Counsel: David Edelberg, Esq.
                  Nowell Amoroso Klein Bierman, P.A.
                  155 Polifly Road
                  Hackensack, NJ 07601
                  Tel: (201) 343-5001
                  Fax: (201) 343-5181

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's 19 Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
P.N.C. Bank, N.A.                value of            $1,300,000
Two Tower Center                 collateral:
22nd Floor                       $450,000
East Brunswick, NJ 08816

Jeanne L. Sanchez                                      $450,000
28 Hickory Hill Road
Montvale, New Jersey 07645

451 Park Avenue Associates                             $311,516
451 Park Avenue
New York, NY 10016

Vasomedical, Inc.                                      $305,239
c/o Marc S. Gottlieb
59 Maiden Lane, 38th Floor
New York, NY 10038

Northfield Savings Bank,                               $300,000
successor to Liberty Bank
1410 Georges Avenue
Avenel, NJ 07001

Olga Restrepo                                          $250,000
125 Laredo Drive
Morganville, NJ 07751

Adriana Sanchez                                        $250,000
Sun Meadow Drive
Orlando, FL

Paterson M.R.I., P.A.                                  $200,000

American Express                                       $116,799
Business Finance

Sovereign Bank,                                        $104,500
assignee of Hi-Tec Lease

Jose Katz, M.D.                                        $104,500

Mega Communications                                     $98,584

Meridian Healthcare                                     $94,291
Group, Inc.

Gary D. Kronfeld, M.D.                                  $43,695

Citicapital Technology                                  $15,000
Finance

Honorable Martin                                        $11,000
Greenberg (ret.)

M.B.N.A.                                                $10,189

Randall Perry, Esq.                                     $10,000

C.I.T.                                                   $9,6717


KB HOME: Moody's Confirms Ba1 Corporate Family Rating
-----------------------------------------------------
Moody's Investors Service confirmed the ratings of KB Home,
including its Ba1 corporate family rating, Ba1 ratings on the
company's senior notes, and Ba2 ratings on the company's
subordinated notes.  The ratings were taken off review for
downgrade, concluding the review that was commenced on Dec. 15,
2006.  The ratings outlook is negative.

The negative outlook reflects Moody's expectation that the
company's earnings based metrics including interest coverage,
return on assets, and gross margins, will weaken in fiscal 2007 as
the housing correction continues.  Additionally, the headroom
under the company's 2.0 times interest coverage covenant is
projected to narrow significantly in fiscal 2007.

The ratings incorporate KB Home's positive cash flow generation
for the trailing twelve months ended Feb. 28, 2007, the company's
leading market share position in numerous markets that it serves,
and its long history through various housing industry cycles.  At
the same time, the ratings are constrained by the company's
historically large share repurchase program and currently high
debt leverage of 51.5% (although debt leverage is expected to
decline below 50% by the end of fiscal 2007).

The outlook could stabilize if headroom under the company's
interest coverage covenant widens and if the company reduces debt
leverage below 50%.  The ratings may come under pressure if any of
the following were to occur: i) if Moody's expects covenant
compliance and/or revolver access to become problematic, ii) if
the company's cash flow generation were to turn negative for a
trailing twelve month period, iii) if debt leverage were to exceed
50% at fiscal year-end, iv) if interest coverage (as calculated in
the company's bank credit agreement) were to fall below 2.5 times
for a twelve month period, or v) if the company were to engage in
more than a very modest share repurchase program.

These ratings were confirmed:

    Corporate family rating, confirmed at Ba1

    Probability of Default rating, confirmed at Ba1

    Senior notes, confirmed at Ba1

    LGD (Loss-given-default) assessment and rate on the senior    
    notes confirmed at LGD3, 49%

    Senior subordinated notes, confirmed at Ba2

    LGD (Loss-given-default) assessment and rate on the senior
    subordinated notes confirmed at LGD6, 92%

Founded in 1957 and headquartered in Los Angeles, California, KB
Home is one of America's largest homebuilders, with domestic
operating divisions in the following regions and states: West
Coast -- California; Southwest -- Arizona, Nevada and New Mexico;
Central -- Colorado, Illinois, Indiana and Texas; and Southeast --
Florida, Georgia, North Carolina and South Carolina.  Kaufman &
Broad S.A., the company's 49%-owned subsidiary, is one of the
largest homebuilders in France.  For the trailing twelve months
ended February 28, 2007, KB Home's homebuilding revenues and net
income were $10 billion and $337 million, respectively.


LB-UBS COMMERCIAL: Moody's Holds Low-B Ratings on 5 Certificates
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of six classes and
affirmed the ratings of 14 classes of LB-UBS Commercial Mortgage
Trust 2001-C7, Commercial Mortgage Pass-Through Certificates,
Series 2001-C7:

    - Class A-2, $18,664,240, affirmed at Aaa
    - Class A-3, $260,145,929, affirmed at Aaa
    - Class A-4, $57,722,000, affirmed at Aaa
    - Class A-5, $540,708,000, affirmed at Aaa
    - Class X-CL, Notional, affirmed at Aaa
    - Class X-CP, Notional, affirmed at Aaa
    - Class B, $49,909,000, affirmed at Aaa
    - Class C, $16,636,000, affirmed at Aaa
    - Class D, $39,300,000, upgraded to Aa1 from A1
    - Class E, $12,100,000, upgraded to Aa2 from A2
    - Class F, $12,120,000, upgraded to A1 from A3
    - Class G, $12,099,000, upgraded to A3 from Baa1
    - Class H, $10,587,000, upgraded to Baa2 from Baa3
    - Class J, $10,587,000, upgraded to Baa3 from Ba1
    - Class K, $15,124,000, affirmed at Ba2
    - Class L, $6,049,000, affirmed at Ba3
    - Class M, $7,562,000, affirmed at B1
    - Class N, $4,537,000, affirmed at B2
    - Class P, $3,025,000, affirmed at B3
    - Class Q, $3,025,000, affirmed at Caa2

As of the March 16, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 18.5%
to $986.0 million from $1.2 billion at securitization.  The
Certificates are collateralized by 103 loans, ranging in size from
less than 1.0% to 21.3% of the pool, with the top 10 loans
representing 57.0% of the pool.  The pool includes two investment
grade shadow rated loans, representing 19.3% of the outstanding
balance.  Twenty-three loans, including the pool's largest loan
(UBS Warburg Building - $209.8 million -- 21.3%), have defeased
and are collateralized by U.S. Government securities.  The
defeased loans represent 38.5% of the pool.

One loan, representing less than 1.0% of the pool, is in special
servicing.  Moody's has estimated a loss of approximately $2.6
million for this loan.  One loan has been liquidated from the pool
resulting in a realized loss of approximately $350,000.  Twenty-
four loans, representing 10.5% of the pool, are on the master
servicer's watchlist.

Moody's was provided with year-end 2005 and partial-year 2006
operating results for 96.0% and 84.0%, respectively, of the pool.
Moody's weighted average loan to value ratio for the conduit
component is 86.0%, compared to 85.8% at Moody's last full review
in January 2006 and compared to 85.5% at securitization.  Moody's
is upgrading Classes D, E, F, G, H and J due to increased credit
support, defeasance and stable overall pool performance.

The largest shadow rated loan is the Fashion Centre at Pentagon
City Loan ($156.3 million -- 15.9%), which is secured by the
borrower's interest in an 820,000 square foot regional mall
located in Arlington, Virginia.  The center is anchored by
Nordstrom and Macy's, which each own their respective
improvements.  The center is a dominant mall in the D.C. metro
area and has been virtually 100.0% occupied since securitization.
Moody's current shadow rating is Aaa, compared to Aa2 at last
review.

The second shadow rated loan is the Connell Corporate Center Loan
($34.4 million - 3.5%), which is secured by a 415,000 square foot
Class A suburban office building located in Berkeley Heights, New
Jersey.  The property was 99.0% leased as of January 2007,
compared to 93.0% at last review.  The loan fully amortizes over
its 11.75-year term and has amortized by approximately 36.6% since
securitization.  Moody's current shadow rating is Aa2, compared to
A1 at last review.

The top three non-defeased conduit loan groups represent 6.7% of
the pool.  The largest non-defeased conduit loan group consists of
the Torrance Executive Plaza East and West Loans ($32.3 million --
3.3%), two cross collateralized loans secured by two office
properties located in Torrance, California.  The properties total
345,000 square feet and are 93.1% occupied, compared to 78.7% at
last review.  Moody's LTV is 93.9%, compared to 98.9% at last
review.

The second largest non-defeased conduit loan group consists of the
Wal-Mart/American Port Services Loan ($17.7 million - 1.7%), two
cross collateralized loans secured by two warehouse buildings
totaling 1.3 million square feet.  Both properties are located in
Savannah, Georgia.  The loan amortizes over a 16-year term and has
amortized by approximately 21.1% since securitization.  The
properties are 100.0% leased.  Moody's LTV is 55.1%, compared to
58.8% at last review.

The third largest non-defeased conduit loan is the Meadows
Corporate Park Loan ($16.7 million - 1.7%), which is secured by a
165,000 square foot Class A office complex located in Silver
Spring, Maryland.  The complex was 93.5% occupied as of December
2006, compared to 87.0% at last review.  Although occupancy has
improved since last review, financial performance has been
impacted by increased operating expenses.  Moody's LTV is 99.5%,
compared to 95.1% at last review.


LINENS 'N THINGS: Moody's Holds Corporate Family Rating at B3
-------------------------------------------------------------
Moody's Investors Service changed the outlook of Linens 'N Things,
Inc. to negative from stable and affirmed all other ratings,
including its B3 corporate family rating.  The change in outlook
to negative is prompted by Linens 'N Things weak fiscal year
results which were significantly below Moody's expectations and
resulted in a significant deterioration of debt protection
measures and moderate erosion in liquidity.

These ratings are affirmed:

     Corporate Family Rating at B3

     Probability of Default Rating at B3

     $650 Million of senior secured guaranteed notes due 2014 at
     B3(LGD4-55%)

     Speculative Grade Liquidity Rating of SGL-3

The company's fiscal year results came in significantly below
Moody's expectations.  As calculated by Moody's using the
company's reported numbers, EBITDA for fiscal year 2006 was $29.9
million versus Moody's expectation of around $166 million.  Free
cash flow for the fiscal year was negative -$132.1 million versus
Moody's expectations of break even free cash flow.  In addition,
the company ended the year with nearly $13 million of cash and
nearly $38 million outstanding under the revolver versus Moody's
expectations of approximately $90 million in cash and no
borrowings.  This resulted in Debt/EBITDA rising to 9.4x.  Moody's
expects the company's free cash flow generation will likely remain
negative during 2007 given its need to continue to be promotional
to regain lost customers as well as to clear its high level of
aged inventory.

The B3 corporate family rating balances the company's
exceptionally weak credit metrics and its likely negative free
cash flow generation during 2007 with its adequate liquidity
provided by a $600 million covenant light asset based revolving
credit facility which gives the company the time to address its
current performance issues and possibly avoid a potential
restructuring.  There is currently approximately $400 million
available under the facility and the company only has to comply
with its performance covenants when excess availability falls
below $75 million.  The company will likely comply with this
minimum excess availability during fiscal year 2007.  In addition,
the rating reflects the company's weak competitive position in a
highly competitive home furnishings market, its negative EBITA
margins during fiscal year 2007, and its history of poor product
offering.  The rating category is supported by its solid
nationwide store base and its well recognized brand name.

The negative outlook primarily reflects the risk (1) that the
company will be unable to generate sufficient cash flow to remain
above the $75 million threshold at which performance covenants
kick in under its revolving credit facility, and (2) that, in such
circumstances, the company will be unable to comply with these
covenants.  These risks exist given the challenges that Linens 'N
Things faces as it continues to focus on executing its multi year
turn around, which includes taking defensive promotions to
maintain its market share and regain lost store traffic, as well
as to clear its high level of aged inventory.

The company's ratings could be downgraded should Linens 'N Things
not be able to reduce its level of free cash flow deficit or
should the company begin to approach the $75 million excess
availability threshold in its revolving credit facility. In
addition, ratings could be downgraded should the company not be
able to demonstrate that it can sufficiently improve margins and
cash flow to levels sufficient to cover its current debt burden.

Linens N Things Inc., headquartered in Clifton, New Jersey, is a
nationwide specialty retailer of home textiles, housewares, and
home accessories that operates approximately 571 stores in 47
states and six Canadian provinces as of Dec. 30, 2006.  Revenues
for the period ended Dec. 30, 2006 were approximately $2.8
billion.


MARD ENTERPRISES: Case Summary & 18 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Mard Enterprises Corp
        2186-44th Street, Southeast No.208
        Kentwood, MI 49508

Bankruptcy Case No.: 07-02668

Type of Business: The Debtor owns a resort located along the
                  shores of Lake Michigan, where it offers a
                  variety of outdoor adventures, and
                  entertainment.

Chapter 11 Petition Date: April 12, 2007

Court: Western District of Michigan (Grand Rapids)

Debtor's Counsel: Dan E. Bylenga, Jr., Esq.
                  Rhoades McKee
                  161 Ottawa Avenue, Northwest
                  Suite 600, Waters Building
                  Grand Rapids, MI 49503
                  Tel: (616) 235-3500

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's 18 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Agostino Zolezzi              2002 loan to company    $1,003,088
3540 Hidden Lake Lane
Grand Rapids, MI 49546

Independent Bank              1555 - 2nd Avenue         $716,158
86 Monroe Center Northwest    South Haven, MI
Grand Rapids, MI 49503
                                                         
Infrastructure                unpaid bills              $110,422
7520 Main Street, Suite 1
Jenison, MI 49428

ECT                           unpaid bills               $33,274

Haywood & Harrison                                       $25,949

City of South Haven           2006 Summer &              $18,243
                              Winter Taxes

Post Associates               unpaid invoices             $8,206


York & Tideringtom                                        $5,087
          
DeBoer Bauman & Co.                                       $4,904

City of South Haven           2006 Summer and             $4,805
                              Winter taxes

Scholten Fant                 Legal fees                  $4,283

CBS Outdoors                                              $2,900

City of South Haven           2006 Summer and             $2,367
                              Winter taxes
                
South Haven Charter           2006 Summer                 $1,518
Township                      and Winter taxes

Wolven Coonen                                               $808

City of South Haven           2006 Summer and               $759
                              Winter taxes

South Haven Charter           2006 Summer                   $428
Township                      and Winter taxes

South Haven Charter           2006 Summer                    $86
Township                      and Winter taxes


MOBILE MINI: Moody's Holds Corporate Family Rating at Ba3
---------------------------------------------------------
Moody's Investors Service affirmed the Corporate Family Rating of
Ba3 on Mobile Mini, Inc. and changed the outlook to positive from
stable.  The change in outlook reflects Mobile Mini's continued
improvement in earnings and leverage since the company's last
upgrade on April 17, 2006.  During this period, Mobile Mini has
demonstrated an ability to expand its business through organic
growth and acquisitions, while continuing its prudent management
of leverage.

An increase in Mobile Mini's rating will be contingent upon its
ability to maintain leverage near current levels while executing
on its growth strategy.  This will be key as the company must
continue to balance the growth and return requirements of its
shareholders, with the financial strength and flexibility
characteristics important to bondholders.  If growth falters, a
change in capital structure that includes the utilization of
additional financial leverage could put negative pressure on the
rating, though this is not expected.

Moody's said the company has reported increases in its core
leasing revenue segment over the last several years while
effectively managing costs.  This has led to an improving and
robust operating margin.  Moody's recognizes the strong economic
environment which has contributed to higher utilization and
average lease rates.  However, Mobile Mini has demonstrated
resiliency during a weak economic cycle.  Also, Mobile Mini's
diverse customer profile with minimal firm-specific concentration
provides consistency to earnings and is a credit strength.

Finally, Moody's notes the company's announcement that it is
tendering for its current senior notes.  It is expected that the
tender offer will be financed with a similar note offering;
therefore, the transaction is viewed as neutral for the rating.

What Could Change the Rating - UP

Ratings could go up if Mobile Mini demonstrates an ability to
handle growth with sustained operating performance and financial
discipline as the company ultimately transitions from a growth to
a more mature entity.

What Could Change the Rating - DOWN

Ratings could go down if there is a material change in the capital
structure resulting in increased leverage or if the company
experiences significant erosion in utilization and average lease
rates.

These ratings have been affirmed with a positive outlook:

Mobile Mini, Inc.:

    - Corporate Family Rating, Ba3

    - Senior Notes, B1

Mobile Mini, Inc., headquartered in Tempe, Arizona, reported
approximately $900 million in total assets as of Dec. 31, 2006.


MORGAN STANLEY: S&P Holds Low-B Ratings on Six Class Certificates
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on 19
classes of commercial mortgage-backed securities pass-through
certificates from Morgan Stanley Capital I Inc.'s series 2005-RR6.
     
The affirmations reflect credit support levels that adequately
support the current ratings.
     
As of the March 26, 2007, remittance report, the collateral pool
consisted of 84 classes of subordinated fixed-rate CMBS pass-
through certificates with an aggregate principal balance of
$562.5 million, compared with 84 classes of certificates totaling
$564.1 million at issuance.  The collateral pool comprises 55
distinct CMBS transactions issued between 1996 and 2005.

In addition, 28% of the collateral balance is concentrated in the
these five underlying transactions:
     
     -- Asset Securitization Corp.'s series 1997-D5 (13%);

     -- PNC Mortgage Acceptance Corp.'s series 2000-C2 (4%);

     -- Asset Securitization Corp.'s series 1996-D2 (4%);

     -- Deutsche Mortgage & Asset Receiving Corp.'s series 1999-C1
        (4%); and

     -- GMAC Commercial Mortgage Securities Corp.'s series 1999-C3
        (3%).
     
The 55 CMBS transactions are collateralized by 6,536 loans with a
current outstanding principal balance of $43.6 billion, down from
8,686 loans with an aggregate principal balance of $61.7 billion
at issuance.
     
The certificates in the collateral pool exhibit credit
characteristics consistent with a 'BBB+' rated obligation, up from
'BBB-' at issuance.  In addition, 53.3% of the certificates had
investment-grade ratings or were issued credit estimates
commensurate with investment-grade obligations at issuance; 67.2%
of the certificates currently have investment-grade ratings.
     
Since the collateral for the mortgage certificates consists of
CMBS pass-through certificates rather than mortgage loans, there
is no direct relationship between real estate losses in the loan
pools and losses realized by the series 2005-RR6 transaction.  
Losses associated with the mortgage loans are first realized by
the CMBS trusts that issued the pass-through certificates secured
by the mortgage loans.  The losses on the pass-through certificate
balances are then allocated first to the unrated "O" classes to
the balances of the mortgage certificates from series 2005-RR6.  
The resultant credit enhancement levels adequately support the
affirmed ratings.
    
                         Ratings Affirmed
     
                   Morgan Stanley Capital I Inc.
               Commercial mortgage-backed securities
                  pass-through certificates series
                             2005-RR6

                Class     Rating   Credit enhancement
                -----     ------   ------------------
                 A-1       AAA           24.73%
                 A-2FX     AAA           24.73%
                 A-2FL     AAA           24.73%
                 A-3FX     AAA           24.73%
                 A-3FL     AAA           24.73%
                 A-J       AAA           15.85%
                 B         AA            10.98%
                 C         A              8.48%
                 D         A-             8.10%
                 E         BBB+           6.60%
                 F         BBB            5.85%
                 G         BBB-           4.73%
                 H         BB+            3.48%
                 J         BB             2.98%
                 K         BB-            2.48%
                 L         B+             2.23%
                 M         B              1.85%
                 N         B-             1.60%
                 X         AAA             N/A
                    

                       *N/A-Not applicable.


MORTGAGE LENDERS: Hires Thelen Reid as Special Regulatory Counsel
-----------------------------------------------------------------
Mortgage Lenders Network USA, Inc., obtained approval from the
U.S. Bankruptcy Court for the District of Delaware to employ
Thelen Reid Brown Raysman & Steiner LLP as special regulatory
counsel nunc pro tunc to its bankruptcy filing.

On Jan. 10, 2007, the Debtor employed Thelen to represent its
interests in communicating with regulators and in any regulatory
proceedings that might follow, including many of the potential
legal issues that may arise in the regulatory context in the
Chapter 11 case.

Daniel Scouler, chief restructuring officer, explains the Debtor
seeks to employ Thelen at the pendency of its bankruptcy case
because of the firm's extensive knowledge of mortgage, banking,
regulatory, compliance, and consumer-privacy related matters, and
because of its expertise and experience in regulatory matters,
including those raised in the cease and desist orders issued by
the State of Connecticut Department of Banking on Jan. 19, 2007.

Thelen has agreed to:

   (a) provide legal advice with respect to regulatory matters;

   (b) prepare, on behalf of the Debtor, necessary applications,
       complaints, answers, declarations, orders, counterclaims,
       affidavits, reports and other legal papers relating to the
       regulatory matters in the case, including the cease and
       desist orders;

   (c) appear, as required, before all regulatory agencies or
       courts in connection with protecting the interests of the
       Debtor;

   (d) advise the Debtor with respect to all regulatory and
       compliance matters, including consumer privacy-related
       matters, that may arise during the course of the
       Chapter 11 case; and

   (e) perform all other legal regulatory services for the Debtor  
       that may be necessary and proper.

Thelen will charge the Debtor for its legal services on an hourly
basis pursuant to its ordinary and customary rates.  The firm
bills $240 to 550 per hour for attorneys, $140 per hour for legal
assistants, and $650 per hour for special regulatory counsel.  
Additionally, certain of the firm's attorneys may provide
discrete legal services at rates up to $675 per hour.

Because Thelen's fees are based on hourly rates and will
correspond to the degree of difficulty expended on the Debtor's
behalf, and are the firm's ordinary and customary rates for
services of this nature, the Debtor believes that the terms and
conditions of Thelen's employment are reasonable.

Within one year prior to the Petition Date, Thelen received
$234,708 from the Debtor, of which $105,000 was received between
Jan. 26, 2007 and Feb. 2, 2007, as representation of the Debtor
as regulatory counsel.

Thelen applied $88,741 from the retainer to satisfy the
prepetition legal fees for services rendered in Jan. 2007, and
$1,213 to satisfy expenses incurred in Jan. 2007.

The remaining $15,046 balance from the retainer will be utilized
as the firm's retainer and applied to expenses pursuant to the
Court-approved compensation procedures.

Norman H. Roos, a partner at Thelen, discloses that the firm has
represented and continues to represent various parties-in-
interest in matters unrelated to the Debtor's Chapter 11 case.  
Mr. Roos assures the Court that the firm is a "disinterested
person" as that term is defined in Section 101(14) of the
Bankruptcy Code.

                      About Mortgage Lenders

Middletown, Conn.-based Mortgage Lenders Network USA Inc. --
http://www.mlnusa.com/-- is a privately held company offering
a full range of Alt-A/Non-Conforming and Conforming loan products
through its retail and wholesale channels.  The company filed for
chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No.
07-10146).  Pachulski Stang Ziehl Young Jones & Weintraub LLP
represents the Debtor.  Blank Rome LLP represents the Official
Committee of Unsecured Creditors.  In the Debtor's schedules of
assets and liabilities filed with the Court, it disclosed total
assets of $464,847,213 and total debts of $556,459,464.  The
Debtor's exclusive period to file a chapter 11 plan expires on
June 5, 2007.

(Mortgage Lenders Bankruptcy News, Issue No. 8; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or    
215/945-7000).


MOST HOME: Posts Net Loss of $1.3 Million in Quarter Ended Jan. 31
------------------------------------------------------------------
Most Home Corp. reported a net loss of $1,391,481 on net revenues
of $470,988 for the second quarter ended Jan. 31, 2007, compared
with a net loss of $613,198 on net revenues of $381,469 for the
same period ended Jan. 31, 2006.  

Membership & ClientBuilder revenues increased $67,168.  This
increase was due to the increase in sales to realtors and real
estate agents, and increase in ClientBuilder revenues from direct
broker sales, starting in fiscal 2006.  

Wireless and mobility revenue increased $44,546.  This increase
was due to the acquisition of Executive Wireless on
June 13, 2005, and expanded sales efforts for the company's
acquired wireless products and services including bundling
services with the ClientBuilder product.

Referral revenue decreased $5,491, mainly as the result of
decreased leads generated through the company's websites listed on
Internet search engine portals.

Gross margin for the three months ended Jan. 31, 2007, was
$257,341 compared to gross margin of $139,628 for the comparable
quarter ended Jan. 31, 2006.   

Amortization expense decreased slightly to $38,036 from the three
months ended Jan. 31, 2006.  The decrease was due to reduced
amortization on previously capitalized development costs that were
written off as of July 31, 2006.

Research and development costs decreased $91,615 from the prior
year.  

Selling, general and administrative costs increased 197.0% from
the quarter ended Jan. 31, 2006.  The main factor for this
increase was non-cash stock compensation for the issuance and
extension of stock options and warrants, totaling $738,053.
Excluding non-cash stock-based compensation, the increase was
50.9%.

At Jan. 31, 2007, the company's balance sheet showed $1,343,014 in
total assets and $1,782,471 in total liabilities, resulting in a
$439,457 total stockholders' deficit.

The company's balance sheet at Jan. 31, 2007, also showed strained
liquidity with $273,895 in total current assets available to pay
$1,782,471 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended Jan. 31, 2007, are available for
free at http://researcharchives.com/t/s?1d1c

                       Going Concern Doubt

Manning Elliott LLP expressed substantial doubt about Most Home's
ability to continue as a going concern after auditing the
company's financial statements for the year ended July 31, 2006.  
The auditing firm pointed to the company's working capital
deficiency, recurring losses from operations, and the need for
additional equity/debt financing to sustain its operations.

                           *     *     *

Headquartered in Maple Ridge, British Columbia, Canada, Most Home
Corp. (OTC BB: MHMEE.OB) -- http://www.mosthome.com/-- provides   
lead acquisition, response and management services to real estate
brokers and agents across North America, along with website and
wireless realty products.


MTR GAMING: Earns $4.4 Million in Year Ended December 31
--------------------------------------------------------
MTR Gaming Group Inc. reported total revenues of $382.6 million
and a net income of $4.4 million for the year ended Dec. 31, 2006,
as compared with total revenues of $358.4 million and a net income
of $7.8 million for the year ended Dec. 31, 2005.

Although the company experienced an increase in revenues,
operating margins did not increase correspondingly.  This can be
attributed to the decline in margins at Binion's, pre-opening and
development expenses for Presque Isle Downs and payments to
support a slot referendum in Ohio for Scioto Downs.  Looking
forward, the company opened the clubhouse for gaming at Presque
Isle Downs on Feb. 28, 2007.  Additionally, the company expects to
further enhance its market penetration and revenue growth as a
result of the recently passed table gaming law in West Virginia.

As of Dec. 31, 2006, the company listed total assets of
$479.2 million, total liabilities of $350.8 million, minority
interests of $5.4 million, and total shareholders' equity of
$123 million.

The company's December 31 balance sheet showed a negative working
capital with total current assets of $54.4 million and total
current liabilities of $60.4 million.  The company had a working
capital deficit of $6 million as of Dec. 31, 2006, and its
unrestricted cash balance amounted to $21.4 million.  The company
increased its retained earnings to $64 million in 2006 from $59.6
million in 2005.

Operating activities produced $42.1 million in cash flow during
the year ended Dec. 31, 2006, as compared with $39.5 million
during 2005.  Current year non-cash expenses included
$25.7 million of depreciation and amortization and $1.6 million of
deferred compensation.  Net cash used in investing activities was
$162.5 million during 2006 compared to $45.7 million during 2005.  
In 2006, the company spent $144.7 million on property and
equipment and other capital projects, including the construction
of Presque Isle Downs, as compared with $39.9 million expenditures
on property and equipment and other capital projects in 2005.  Net
cash provided by financing activities was $119.2 million during
2006, as compared with $6.4 million during 2005.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1d21

                       Recent Transactions

Through the company's wholly owned subsidiary, Presque Isle Downs,
Inc., the company opened the clubhouse of Presque Isle Downs &
Casino on Feb. 28, 2007.  Presque Isle Downs currently consists of
a 140,000 square foot clubhouse with 2,000 slot machines, fine and
casual dining restaurants, bars, and about 3,225 parking spaces.  
The company intends to commence live thoroughbred horse racing at
Presque Isle Downs in September 2007.  The Pennsylvania Racing
Commission has approved the company's request for 25 racing dates
in 2007.

On Feb. 9, 2007, Speakeasy Gaming of Las Vegas, Inc., the
company's wholly owned subsidiary, and Mandekic Companies LLC
entered into a Purchase and Sale Agreement providing for the sale
of the Ramada Inn and Speedway Casino for $18.2 million in cash.  
The transaction is subject to customary conditions, including the
approval of the Nevada Gaming Commission and the City of North Las
Vegas.  Due diligence has been completed by the buyer and the
closing is expected to take place within thirty days after the
receipt of all regulatory approvals, which the buyer must obtain
within one year, extendable for up to six months.

                        About MTR Gaming

MTR Gaming Group Inc. (NasdaqGS:MNTG) -- http://www.mtrgaming.com/
-- owns and operates the Mountaineer Race Track & Gaming Resort in
Chester, West Virginia; Scioto Downs in Columbus, Ohio; the Ramada
Inn and Speedway Casino in North Las Vegas, Nevada; Binion's
Gambling Hall & Hotel in Las Vegas, Nevada; and holds a license to
build Presque Isle Downs, a thoroughbred racetrack with pari-
mutuel wagering in Erie, Pennsylvania.  The company also owns a
50% interest in the North Metro Harness Initiative LLC, which has
a license to construct and operate a harness racetrack and card
room outside Minneapolis, Minnesota and a 90% interest in Jackson
Trotting Association LLC, which operates Jackson Harness Raceway
in Jackson, Michigan.

                           *     *     *

MTR Gaming Group Inc. carries Moody's Investors Service's B1
Corporate Family Rating.


NAVIOS MARITIME: Names George Achniotis as Chief Financial Officer
------------------------------------------------------------------
Navios Maritime Holdings Inc. has named George Achniotis as chief
financial officer and Michael McClure as senior vice president for
corporate affairs.
   
"George's depth of experience in financial matters, and knowledge
of the shipping industry will be invaluable as the company
continue to build its business," Angeliki Frangou, ceo and
chairman of Navios, said.  "The company looks forward to George's
leadership and continued contribution as he expands the
financial group's function."
    
Mr. Achniotis joined Navios in August of 2006 as senior vice
president for business development and assisted in a number of
financing and other projects completed during the past nine
months.  Before joining Navios, Mr. Achniotis was a partner at
PricewaterhouseCoopers where he led the shipping practice in
Piraeus, Greece.  Mr. Achniotis has over 19 years experience in
finance, having worked in England, Cyprus and Greece and is a
qualified chartered accountant, member of the Institute of
Chartered Accountants in England and Wales and the Institute of
Certified Public Accounts in Cyprus.  Mr. Achniotis also holds a
Bachelor's degree in Civil Engineering from the University of
Manchester.

"During Mike's 29-year tenure with Navios, he has demonstrated
consistent excellence and developed as an industry leader through
his pioneering work on FFA trading with The Baltic Exchange,"
Ms. Frangou stated, commenting on Mr. McClure's new position.  
"The company, together with the investors, is pleased to benefit
from Mr. McClure's leadership and industry knowledge."

                       About Navios Maritime

Based in Norwalk, Connecticut, Navios Maritime Holdings Inc.
(NYSE: NM) (NYSE: NM WS) -- http://www.navios.com/-- is an  
integrated global seaborne shipping company, specializing in the
worldwide carriage, trading, storing, and other related logistics
of international dry bulk cargo transportation.  The company also
owns and operates a port/storage facility in Uruguay and has in-
house technical ship management expertise.  It has offices in
Piraeus, Greece; South Norwalk, Connecticut; Montevideo, Uruguay
and Antwerp, Belgium.

                            *    *    *

Navios Maritime's 9-1/2% Senior Notes due 2014 carry Moody's
Investors Service's B2 rating and Standard & Poor's B rating.


NEW YORK RACING: Hires Brown Harris to Appraise Race Tracks
-----------------------------------------------------------
New York Racing Association Inc. obtained permission from the U.S.
Bankruptcy Court for the Southern District of New York to employ
Brown Harris Stevens Appraisal and Consulting LLC as Appraiser.

The Debtor retained BHS to appraise the market value of the
Racetracks for the most probable price in a competitive and open
market sale.  The Debtor engaged BHS to undertake the appraisals
of both the vacant and improved land currently operated as
Aqueduct Racetrack, Belmont Park, and Saratoga Race Course.

BHS will consider:

   a) site plans indicating parcels and improvements;

   b) building plans indicating size and use of improvements;

   c) current property real estate tax assessments;

   d) any property condition and environment reports regarding the  
      land or improvements;

   e) major recent and planned capital expenditures;

   f) zoning analysis for each property;

   g) relevant leases which may exist on any of the properties;  
      and

   h) historical financial statements.

As BHS completes its review of the valuation results, Sharon
Locatell, the executive director of BHS, together with Elizabeth
Venute, the senior director of BHS will prepare a final report for
each Racetrack.  The final report will include:

   a) a list of the owned real estate properties appraised along a
      description of the premises;

   b) a macro analysis of the value, taxes, and zoning regulations
      of the region in which the appraised premises sits, a
      discussion of the nature of the investigation;

   c) a discussion of the methodology of appraisal employed,
      including qualifying assumptions, limiting conditions,
      certifications and definitions;

   d) the date of valuation; and

   e) a summary of BHS's conclusions of value.

The Debtor tells the court that BHS will charge a flat fee for
each published report and that BHS estimated the fee for its
services from $10,000 to $15,000 per Racetrack but would not
exceed $50,000.  The Debtor has paid $20,000 retainer.

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

Based in Jamaica, New York, The New York Racing Association
Inc. aka NYRA -- http://www.nyra.com/-- operates racing tracks in
Aqueduct, Belmont Park and Saratoga.  The company filed
a chapter 11 petition on November 2, 2006 (Bankr. S.D.N.Y.
Case No. 06-12618)  Brian S. Rosen, Esq., at Weil, Gotshal &
Manges LLP represents the Debtor in its restructuring efforts.
Edward M. Fox, Esq., Eric T. Moser, Esq., Jeffrey N. Rich, Esq.,
at Kirkpatrick & Lockhart Preston Gates Ellis LLP, represent the
Official Committee of Unsecured Creditors.  When the Debtor sought
protection from its creditors, it listed more than $100 million in
total assets and total debts.


NORTHWEST AIRLINES: Examiner Wants Willkie Farr as Counsel
----------------------------------------------------------
Richard Nevins, the newly appointed examiner for Northwest
Airlines Corp. and its debtor-affiliates' Chapter 11 cases, asks
the U.S. Bankruptcy Court for the Southern District of New York
for permission to hire Willkie Farr & Gallagher LLP, as his
counsel, nunc pro tunc April 6, 2007, to assist him in performing
his duties as Examiner.

Mr. Nevins informs the Court that he has selected Willkie Farr as
his counsel since the firm has been recognized internationally
for its preeminent restructuring advisory group, which has served
debtors, creditors' and shareholders' committees, acquirers,
investors, secured and unsecured creditors and lenders in complex
Chapter 11 cases and other aspects of restructuring and
distressed entities and bankruptcy-related issues.

Willkie Farr's attorneys will be paid $265 to $895 per hour while
its paralegals will get $125 to $235 per hour.

Mr. Nevins assures the Court that Willkie Farr is a
"disinterested person" as defined by Section 101(14) of the
Bankruptcy Code.

Mr. Nevins notes, however, that as a result of the conflicts
search he conducted, he found out that Willkie Farr has acted in
a limited capacity as counsel to Carlson Capital, LP, a party-in-
interest in the Debtors' Chapter 11 cases.

Willkie Farr primarily monitored the docket and retrieved
documents for Carlson to facilitate Carlson's access to
pleadings, which are otherwise publicly available, Mr. Nevins
explains.

Mr. Nevins notes that Willkie Farr has assured him that it will
take steps, including the creation of an "ethical wall" between
those attorneys who are monitoring the cases for Carlson and
those assisting the Examiner, to make sure there will be no
disclosure of confidential information.

Mr. Nevins discloses that Willkie Farr's partners, officers,
directors, principals, employees or affiliates may have (i)
customary business associations with certain of the Debtors'
creditors or other potential parties-in-interest, or (ii)
interests adverse to the creditors or potential parties-in-
interest, which have no connection with the Chapter 11
proceedings.  The potential parties-in-interest include JPMorgan
Chase Bank. N.A., HSBC Bank USA, and U.S. Bank, National
Association.

The Examiner adds that he and Willkie Farr's partners and
associates may be members of the Debtors' frequent flyer program
as well as frequent flyer programs run by other airlines.  As a
result of these memberships, there may be benefits offered by the
programs in connection with any air travel, possibly including
air travel in connection with Willkie Farr's retention in the
Chapter 11 cases.

                     About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/   
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its travel
partners serve more than 900 cities in excess of 160 countries on
six continents.  The Company and 12 affiliates filed for chapter
11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No.
05-17930).  Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq.,
at Cadwalader, Wickersham & Taft LLP in New York, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in
Washington represent the Debtors in their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for protection
from their creditors, they listed $14.4 billion in total assets
and $17.9 billion in total debts.  (Northwest Airlines Bankruptcy
News, Issue No. 65; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)    

                             Plan Update

On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11
Plan.  On Feb. 15, 2007, they Debtors filed wan Amended Plan &
Disclosure Statement.  The Court approved the adequacy of the
Debtors' Disclosure Statement on March 26, 2007.  The hearing to
consider confirmation of the Debtors' Plan is set for May 16,
2007.


NORTHWEST AIRLINES: Court Approves Equity Commitment Agreement
--------------------------------------------------------------
The Hon. Allan Gropper of the U.S. Bankruptcy Court for the  
Southern District of New York authorizes Northwest Airlines Corp.
and its debtor-affiliates' to execute, deliver, and implement the
Equity Commitment Agreement and the Registration Rights Agreement.

Furthermore, the ECA and the Registration Rights Agreement will
be binding and enforceable against NWA Corp. and Northwest
Airlines in accordance with their terms.

The Court also directs the Debtors to pay to JPMorgan Securities,
Inc., the underwriting fee; any of the expiration time fees; the
breakup fee; the transaction expenses; and all other payments to
or for the benefit of JPMorgan and the syndicate members required
under the ECA and the Registration Rights Agreement, without
further filing with or Order of the Court.

Judge Gropper approves the syndication as a related and integral
transaction to the ECA.

To the fullest extent permitted under applicable law, including
Section 1125(e) of the Bankruptcy Code, in recognition of the
substantial and complex nature of the transactions contemplated
by the ECA and the related syndication, and the substantial
benefit to all parties-in-interest upon consummation of the
transactions, the Debtors, JPMorgan and the Syndicate Members and
their affiliates will have no liability to any party arising from
their participation in the transactions.

The Court waives the 10-day period under Rule 6004(g) of the
Federal Rules of Bankruptcy Procedure.

                     About Northwest Airlines

Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/   
-- is the world's fourth largest airline with hubs at Detroit,
Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and
approximately 1,400 daily departures.  Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the
world's most extensive global networks.  Northwest and its travel
partners serve more than 900 cities in excess of 160 countries on
six continents.  The Company and 12 affiliates filed for chapter
11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No.
05-17930).  Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq.,
at Cadwalader, Wickersham & Taft LLP in New York, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in
Washington represent the Debtors in their restructuring efforts.
The Official Committee of Unsecured Creditors has retained Akin
Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the
Debtors' chapter 11 cases.  When the Debtors filed for protection
from their creditors, they listed $14.4 billion in total assets
and $17.9 billion in total debts.  (Northwest Airlines Bankruptcy
News, Issue No. 65; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)    

                             Plan Update

On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11
Plan.  On Feb. 15, 2007, they Debtors filed wan Amended Plan &
Disclosure Statement.  The Court approved the adequacy of the
Debtors' Disclosure Statement on March 26, 2007.  The hearing to
consider confirmation of the Debtors' Plan is set for May 16,
2007.


OSHKOSH TRUCK: Audie Zimmerman Joins as Director
------------------------------------------------
Oshkosh Truck Corporation disclosed that Audie Zimmerman has
joined the company as director of business development, Middle
East.  In this newly created role located in Dubai, Zimmerman will
be responsible for capitalizing upon business opportunities with
Oshkosh's broad product line in the Middle East.  This appointment
further strengthens Oshkosh's commitment to servicing the region.

"Audie's extensive background and business development experience
in the Middle East will be instrumental to Oshkosh's growth plans
and customer service expansion in the region," Robert G. Bohn,
Oshkosh's chairman, president and chief executive officer, said.
"The entire Oshkosh team welcomes him into this strategically
important position which supports the increasing globalization of
our customer and revenue bases."

Zimmerman joins Oshkosh Truck after leading AM General's efforts
in the Middle East and Africa over the past five years, where he
developed a reputation for developing strong business solutions.
He holds a B.S. in civil engineering from the United States
Military Academy at West Point and an M.B.A. from Golden Gate
University.

Oshkosh Truck and its subsidiaries have sold products in the
Middle East for more than three decades, including several major
contracts for fire apparatus, defense logistics vehicles, towing
equipment, and aircraft rescue and firefighting vehicles.

                        About Oshkosh Truck

Oshkosh, Wis.-based Oshkosh Truck Corp. (NYSE:OSK) --
http://www.oshkoshtruckcorporation.com/-- which was founded in   
1997, is a designer, manufacturer and marketer of a broad range of
specialty access equipment, military, commercial and fire and
emergency vehicles and vehicle bodies.  Oshkosh's products are
valued worldwide by rental and construction companies, defense
forces, fire and emergency units, municipal and airport support
services, and concrete placement and refuse businesses where high
quality, superior performance, rugged reliability and long-term
value are paramount.

                           *     *     *

Moody's Investors Service rated Oshkosh Truck Corp.'s long-term
corporate rating and probability of default rating at 'Ba3'.  
Moody's said the outlook is stable.

Standard & Poor's rated Oshkosh Truck Corp.'s foreign and local
issuer credit rating at 'BB'.  S&P said the outlook is stable.


PACER HEALTH: Restates 2006 Third Quarter Financial Statements
--------------------------------------------------------------
Pacer Health Corp. filed on March 23, 2007, its restated  
financial statements for the third quarter ended Sept. 30, 2006,
to reflect the change in accounting treatment of the sale-
leaseback of certain of its assets in Georgia as a financing
transaction rather than a sale transaction in accordance with FASB
Statement No. 98 "Accounting for Leases".

The effect of the restatement is:

                              As Previously
                                Presented         As Restated

Total Assets                    $8,918,788         $9,194,264
Total Liabilities               $9,803,934        $11,613,934
Total Stockholders' Deficit       $885,146         $2,419,670
Net Income                      $4,294,030         $2,759,505

On Sept. 29, 2006, the company executed a sale-leaseback of
certain of its assets in Georgia, which included a sale of its
skilled nursing operations to Health Systems Real Estate Inc.  The
assets sold include all real property for Minnie G. Boswell
Memorial Hospital as well as licenses, permits and personal
property, including vehicles, related to the skilled nursing
operations.  The sale price was $2,600,000.

Health Systems leased back the real property to the company
pursuant to a five year triple net lease which would call for
annual lease payments equal to $480,000.  Under the contract, the
company shall have the right to terminate the lease at the end of
thirty-six months subject to ninety days prior written notice.  

The sale-leaseback of the real property was previously accounted
for as a financing lease, wherein the property remains on the
books and continues to be depreciated.

Full-text copies of the company's amended consolidated financial
statements for the quarter ended Sept. 30, 2006, are available for
free at http://researcharchives.com/t/s?1d16

The company's previously filed consolidated financial statements
for the quarter ended Sept. 30, 2006, are available for free at:

               http://researcharchives.com/t/s?168b    

Miami, Nev.-based Pacer Health Corporation (OTCBB: PHLH)
-- http://www.pacerhealth.com/-- owns and operates medical
treatment centers and acute care facilities, primarily serving the
growing senior citizen population and low-to-moderate income
individuals.

                          *     *     *

The company's balance sheet at Sept. 30, 2006, as restated, showed
$9.2 million in total assets and $11.6 million in total
liabilities, resulting in a $2.4 million total stockholders'
deficit.


PACER INTERNATIONAL: Inks New $250 Million Senior Credit Facility
-----------------------------------------------------------------
Pacer International Inc. has entered into a new senior credit
facility with a syndicate of financial institutions led by Bank of
America, N.A.  The credit agreement provides for a $250 million,
five-year revolving credit facility.  The company's obligations
under the new facility are secured by a pledge of all of the stock
of its domestic subsidiaries and a portion of the stock or other
equity interests of certain of its foreign subsidiaries.

According to Mike Uremovich, Pacer's chairman and chief executive
officer, the company has utilized $59 million of the new credit
facility to repay the balance due under the existing bank credit
facility, which was terminated.  Borrowing under the new facility
will be used for the share purchase authorization, acquisitions,
and for working capital and general corporate purposes of the
company and its subsidiaries, Uremovich said.

"As a result of the company's continuing strong cash flow,"
Uremovich noted.  "The company is able to complete this
refinancing, and it will bring additional savings to the company's
bottom line."  Based upon the current outstanding debt balance,
the company estimates that its pre-tax annualized financing costs
will be reduced by $1.5 million.  These savings would come from a
combination of lower interest rates, lower amortization of debt
issuance costs and other reduced costs.  As a result of the
termination of the prior credit facility, the company will incur a
one-time pre-tax, non-cash charge in the first fiscal quarter of
2007 of $1.8 million related to the write-off of unamortized debt
costs associated with the prior credit facility.

                    About Pacer International

Headquartered in Concord, California, Pacer International Inc.
(Nasdaq:PACR -- http://www.pacer-international.com/-- is a non-
asset based North America third-party logistics and freight
transportation provider.  Through its Intermodal and Logistics
operating segments, the company offers a broad array of services
to facilitate the movement of freight from origin to destination.  
The Intermodal segment offers wholesale services provided by Pacer
Stacktrain, well as retail services through its Rail Brokerage
group.  The Logistics segment provides retail truck brokerage,
trucking, warehousing and distribution, international freight
forwarding, and supply-chain management services.  

                           *     *     *

As reported in the Troubled Company Reporter on April 11, 2007,
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on Pacer International Inc.  


PACIFIC LUMBER: Court Okays Cash Collateral Use Until April 27
--------------------------------------------------------------
The Hon. Judge Richard S. Schmidt of the Unites States Bankruptcy
Court authorizes Pacific Lumber and its debtor-affiliates to
continue using cash collateral through and including April 27,
2007.

The Debtors have not yet filed a revised budget with the Court as
of April 10, 2007.

The Debtors are only permitted to use Cash Collateral for the
purposes enumerated in the Budget.  The Debtors are not permitted
to use Cash Collateral for payment of professional fees,
disbursements, costs, or expenses incurred in connection with
asserting any claims or causes of action against the Lenders.

The Court has scheduled a hearing for April 24, 2007, to consider
the Debtors' continued use of cash collateral.

                      About Pacific Lumber

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

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

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

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

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.  

Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.  The Debtors' exclusive period to file a chapter
11 plan expires on May 18, 2007.  (Scotia/Pacific Lumber
Bankruptcy News, Issue No. 13, http://bankrupt.com/newsstand/or        
215/945-7000).                 


PACIFIC LUMBER: Court Okays Hiring of Deloitte & Touche as Auditor
------------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
Texas has granted the motion of Scotia Pacific Company LLC, The
Pacific Lumber Company and Britt Lumber Co. Inc. to separately
employ Deloitte & Touche LLP as their independent accountant and
auditor, nunc pro tunc to Jan. 18, 2007.

As reported in the Troubled Company Reporter on March 30, 2007,
Deloitte & Touche has provided audit services to the Debtors since
Sept. 27, 2006, and has completed a substantial portion of the
Debtors' 2006 audit work.

As accountants and auditors for PALCO and Britt Lumber, Deloitte
& Touche is expected to:

   (a) audit and report on PALCO and Britt Lumber's annual
       financial statements for the year ending Dec. 31, 2006, in
       conformity with their secured credit agreements; and

   (b) perform audit-related tax work incidental to the audit of
       the financial statements for year ended Dec. 31, 2006.

As Scopac's accountants and auditors, Deloitte & Touche is
expected to:

   (a) audit and report on Scopac's annual financial statement
       for the year ending Dec. 31, 2006; and

   (b) review Scopac's interim financial information for each of
       the quarters in the year ending Dec. 31, 2006, prepared for
       submission to the Securities and Exchange Commission.

Deloitte & Touche will also assist Scopac in connection with
Scopac and The Bank of New York Trust Company N.A.'s evaluation of
Scopac's compliance with the Indenture dated July 20, 1998, by and
between Scopac and BoNY for the year ending Dec. 31, 2006.

Deloitte & Touche will bill the Debtors for services rendered
based on its hourly rates:

          Professional                Hourly Rate
          ------------                -----------
          Partners/Director              $370
          Senior Manager                 $315
          Manager                        $295
          Senior Auditor                 $225
          Auditor                        $170

John Harrell, a partner of Deloitte & Touche, related that
Deloitte & Touche has provided prepetition audit and accounting
services to the Debtors.  The firm has $207,985 from the Debtors
90 days prior to the Petition Date, and holds prepetition claims
against Scopac for $34,383, and PALCO and Britt for $29,467.

Deloitte & Touche will not seek any recovery of its prepetition
claims against the Debtors, Mr. Harrell says.

Mr. Harrell assured the Court that the Deloitte & Touche does not
hold or represent any interest adverse to the Debtors and their
creditors, and is deemed a "disinterested person" as the term is
defined pursuant to Section 101(14) of the Bankruptcy Code.

                       About Pacific Lumber

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

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

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

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

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.  
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.  The Debtors' exclusive period to file a chapter
11 plan expires on May 18, 2007.  (Scotia/Pacific Lumber
Bankruptcy News, Issue No. 13, http://bankrupt.com/newsstand/or       
215/945-7000).                 


PARADIGM SAN FRANCISCO: Case Summary & 5 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: Paradigm San Francisco Ventures, Inc.
        101 Fourth Street
        San Francisco, CA 94103-3003
        Tel: (805) 523-8487

Bankruptcy Case No.: 07-30420

Type of Business: The Debtor creates and maintains eating,
                  drinking, and entertainment establishments.
                  See http://www.ljsmartiniclub.com/and  
                  http://www.portal1arcade.com/

Chapter 11 Petition Date: April 12, 2007

Court: Northern District of California (San Francisco)

Judge: Thomas E. Carlson

Debtor's Counsel: Iain A. Macdonald, Esq.
                  Law Offices of Macdonald and Associates
                  2 Embarcadero Center, Suite 1670
                  San Francisco, CA 94111-3930
                  Tel: (415) 362-0449

Estimated Assets: $100,000 to $1 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's Five Largest Unsecured Creditors:

   Entity                        Nature of Claim   Claim Amount
   ------                        ---------------   ------------
Internal Revenue Service         payroll taxes       $1,000,000
Special Procedures-Bky
1301 Clay Street,
Suite 1400S
Oakland, CA 94612-5210

State Board of Equalization      sales and use         $240,000
State of California              tax
Account Analysis and Control
Sec, MIC:29
P.O. Box 942879
Sacramento, CA 94279-0029

Cleveland Coin Machine           game revenue          $114,000
Exchange
17000 South Waterloo
Cleveland, OH 44110

Metreon, Inc.                    payroll taxes          $36,000

Employment Development Dept.     payroll taxes          $24,000
State of California


PATHEON INC: S&P Rates $150 Million Term B Facility at B+
---------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Canadian contract drug manufacturer
Patheon Inc.

At the same time, Standard & Poor's assigned its 'BB' bank loan
rating, with a recovery rating of '1', to Patheon's $75 million
ABL revolver and its 'B+' bank loan rating, with a recovery rating
of '3', to the company's $150 million term B facility.  The '1'
recovery rating indicates a full recovery of principal (100%), and
the '3' recovery rating indicates a meaningful recovery of
principal (50%-80%), in a default scenario.  Standard & Poor's
also assigned its 'B-' rating to Patheon's proposed S$150 million
8.5% convertible preferred shares.  The outlook is negative.
     
"The ratings on Patheon reflect a business risk profile weakened
by operating issues at the company's Puerto Rican operations, and
credit metrics that will remain weak until free cash flow, which
is negative, improves meaningfully," said Standard & Poor's credit
analyst Don Povilaitis.  "These factors are partially offset by
Patheon's position as a leading global drug manufacturer with
strong customer relationships, and an improving liquidity
profile as a result of its recent refinancing," Mr. Povilaitis
added.
     
Patheon is a global provider of contract drug manufacturing and
development services to pharmaceutical and biotechnology
companies, with 14 sites and 3.3 million square feet of capacity
serving three markets: large pharmaceutical companies, biotech
companies, and specialty pharma companies.
     
On March 2, 2007, the company announced an agreement whereby JLL
Partners will invest US$150 million of convertible preferred
equity in Patheon.  In addition, Patheon will refinance
substantially all of its existing debt, excluding its Italian
debt, with a new US$75 million five-year ABL revolver and a US$150
million seven-year term loan B.
     
Patheon's various restructuring initiatives and substantial
severance payments will likely preclude the company being free
cash flow positive in fiscal 2007.  Still, a gradual recovery is
expected in the company's operations, which should result in
modestly positive free cash flow next fiscal year.
     
The negative outlook incorporates operational risks such as the
successful execution of Patheon's restructuring program and its
ability to generate the requisite volume through its facilities to
improve its profitability profile.  Moreover, the high cost of the
company's convertible preferreds adds the element of refinancing
risk after two-and-a-half years.  If regulatory, product quality,
or client issues preclude improvement in the company's cash flow,
Patheon could be downgraded.  Conversely, should operations
stabilize and the company is able to consistently improve its
earnings, the outlook could be revised to stable.


PLEASANT CARE: Wants Citra Capital as Financial Consultant
----------------------------------------------------------
Pleasant Care Corporation and its debtor-affiliates ask authority
from the U.S. Bankruptcy Court for the Central District of
California to employ Citra Capital Management LLC as Financial
Consultant and Sales Advisor.

The Debtors ask for the retention of Citra Capital since it has
assisted the Debtors in the selling of four Problem Facilities in
the past year.

The Debtors intend to sell 3 Decertified Facilities located in San
Joaquin, Novato, Ukiah, in order for them to operate their
businesses in a break-even level, and Citra will be the point
person in the selling of these facilities.

Citra Capital will assist the Debtors in:

   a) stabilizing and operating their facilities;

   b) preparing their schedules of assets and liabilities and
      statements of financial affairs;

   c) preparing other reporting documents required by the office
      of the U.S. Trustee;

   d) preparing of cash flow projections and other documents
      related to the continued use of the cash collateral;

   e) selling some or all of the Debtors' facilities;

   f) formulating any disclosure statements and plans; and

   g) tasks appropriate in assisting the Debtors and Counsel.

The Debtors tell the Court that Citra will be paid:

   a) a flat financial advisory fee of $40,000 for the
      postpetition portion of March 2007;

   b) a flat advisory fee of $20,000 for each calendar month,
      until terminated;

   c) a flat Sales Agency Fee of 2.5% of the gross sales price
      paid for a facility; and

   d) a $20,000 with the Sales Agency Fee from the proceeds of the
      sale concurrent with the sale closing as cost of the sale.

Herb Saltzman, Managing Director of Citra, assures the Court that
the Firm is "disinterested" as that term is defined in Section
101(14) of the Bankruptcy Code.

Based in La Canada, California, Pleasant Care Corporation and its
affiliates -- http://www.pleasantcare.com/-- provide nursing home
care.  The company and four of its affiliates filed for chapter 11
protection on March 22, 2007 (Bankr. C.D. Calif. Lead Case No.
07-12312).  Ron Bender, Esq., Monica Y. Kim, Esq., and Jacqueline
L. Rodriguez, Esq., at Levene, Neale, Bender, Rankin & Brill LLP,
represent the Debtors.  When the Debtors filed for protection from
their creditors, they listed estimated assets and debts between $1
million and $100 million.


REAL ESTATE: DBRS Confirms Low-B Ratings on Six Class Certificates
------------------------------------------------------------------
Dominion Bond Rating Service has finalized the provisional ratings
of these classes of Real Estate Asset Liquidity Trust, Series
2007-1 Commercial Mortgage Pass-Through Certificates:

   * Class A-1 at AAA
   * Class A-2 at AAA
   * Class XP at AAA
   * Class XC at AAA
   * Class B at AA
   * Class C at A
   * Class D at BBB
   * Class E at BBB (low)
   * Class F at BB (high)
   * Class G at BB
   * Class H at BB (low)
   * Class J at B (high)
   * Class K at B
   * Class L at B (low)

Finalization of ratings is contingent upon receipt of final
documents confirming information that has already been received.

The collateral consists of 76 fixed-rate loans secured by 100
multi-family and commercial properties.  The portfolio has a
balance of $514,023,418.  Although approximately 47.5% of loan
collateral is located in Ontario, this is mitigated by Ontario
being the largest province, with a highly urbanized population
with a diversified economy.  DBRS inspected 84.7% of the pool
by loan balance.  Based on DBRS's site inspections, 18.8% of
the sample properties were considered to have excellent property
quality and 34.9% of the sample to have above-average property
quality.

Fifty-five loans, representing 75% of the pool, provide full or
partial recourse to the loans.  The collateral properties are
predominantly located in urban locations.  DBRS shadow-rates three
loans, representing 19.3% of the pool, investment grade.  The
investment-grade shadow-rated loans indicate the long-term
stability of the underlying assets.  The shadow-rated investment-
grade ratings assigned by DBRS are:

   * Langley Power Centre - BBB
   * The Atrium Pooled Interest - A (low)
   * Port Kells Industrial - BBB (low)

Although one loan will not complete the majority of its tenant
improvement prior to the transaction close, which increases the
risk of default for this loan, the loan is secured by a well-
located property that upon completion and stabilization should
be a high-quality asset.

The pool is heavily concentrated, with the top-ten loans
representing 52.1% of the pool balance. However, there are 30
properties that collateralize the top-ten loans, including one
loan that is secured by multiple properties, adding diversity to
the pool.  The three shadow-rated loans are all in the top-ten.

The pool weighted-average DBRS-stressed term debt service coverage
ratio is 1.38x, the weighted-average DBRS-stressed refinance DSCR
is 1.35x.  The DBRS-stressed loan-to-value is 79.1% with six
loans, 12.4% of the pool, having a DBRS-stressed LTV greater
than 90%.


REYNOLDS AMERICAN: Good Performance Cues S&P's Positive Outlook
---------------------------------------------------------------
Standard & Poor's Ratings Services revised its rating outlook on
Winston-Salem, North Carolina-based Reynolds American Inc., as
well as its wholly owned subsidiary RJ Reynolds Tobacco Holdings
Inc., to positive from stable.  At the same time, Standard &
Poor's raised its senior secured debt rating on RAI's existing
senior secured notes to 'BBB-', from 'BB', and revised the
recovery rating to '1' from '3', indicating that lenders can
expect full (100%) recovery of principle in the event of payment
default, reflecting a change to our default scenario assumptions
in our recovery analysis.  All other ratings on the company,
including the 'BB+' corporate credit rating, were affirmed.
     
"The outlook revision is due to RAI's improved operating
performance following the acquisition of Conwood in May 2006, its
continued margin expansion, moderating volume and market share
declines, and a more favorable legal environment," said Standard &
Poor's credit analyst Rick Joy.
     
The ratings on RAI, and its wholly owned subsidiary RJR, continue
to reflect the company's participation in the contracting domestic
cigarette industry, its declining shipment volumes and market
share, and significant litigation risk partly offset by relatively
moderate financial policies.  Through its indirect subsidiary RJ
Reynolds Tobacco Co., RAI is the second-largest cigarette
manufacturer in the U.S.


SCRANTON-LACKAWANNA: S&P Puts Bonds' Rating on Developing Watch
---------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' rating on
Scranton-Lackawanna Health and Welfare Authority, Pennsylvania's
$36.7 million bonds, issued for Moses Taylor Hospital on
CreditWatch with developing implications, reflecting the
hospital's announced affiliation with a local competitor, which
should strengthen MTH's credit profile if consummated, although it
is also expected to defease the bonds.  If the affiliation fails,
however, the rating could fall due to MTH's continued operating
losses and essentially no liquidity.  
     
MTH, part of the Moses Taylor Health System, has struggled for
several years with sizable operating losses and very low
liquidity, prompting a series of downgrades on its debt to the
current level.  Standard & Poor's has assigned a negative outlook
to the 'B-' rating since January 2005.  During that time, merger
discussions with local competitor Community Medical Center were
well underway, then broken off in spring 2005.
     
Management expects the new affiliation with CMC to close around
July 1, 2007, pending regulatory approval.  It has been approved
by the boards of both parties.  The likelihood of the
affiliation's consummation is much stronger this time given Blue
Cross of Northeastern Pennsylvania's $50 million contribution to
the new entity, which will be known as Northeast Pennsylvania
Healthcare System.  The contribution will be available to NPHS at
closing, and will likely be used to defease MTH's debt, recruit
physicians, and improve medical and information technology.  
Another factor that makes the merger more likely to be completed
this time include the deteriorating financial condition of both
parties, making the affiliation more imperative.
     
The key driver of the merger is the demographic and competitive
characteristics of the Scranton market.  The market, with
population declines in Lackawanna County and the Scranton, cannot
support three vibrant hospitals in the long term, and all three
competitors have been doing poorly.


SEA CONTAINERS: Wants to Employ PWC Legal as U.K. Labor Counsel
---------------------------------------------------------------
Sea Containers, Ltd. and its debtor-affiliates ask authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
PricewaterhouseCoopers Legal LLP as their United Kingdom pension
and labor counsel, nunc pro tunc to Feb. 23, 2007.

SCL relates that the UK pension laws underwent significant reform
from April 2005.  Given the prior decision of management to engage
Kirkland & Ellis LLP as its lead bankruptcy counsel, the Debtors
require the assistance of experienced outside pension counsel, who
can provide advice regarding the new pension laws, during the
pendency of the Chapter 11 cases.

According to SCL, PwC Legal has extensive experience with, and
knowledge of, the reformed pension laws and the Debtors' pension
schemes.  The firm has the necessary expertise and background to
assist the Debtors on an ongoing basis with respect to matters
related thereto which may arise in the Chapter 11 cases.  The
Debtors believe that PwC Legal is both well qualified and able to
provide the requested services in the most efficient, timely and
economical manner.

SCL tells the Court that PwC Legal's assistance is also required
in respect of UK labor law, predominantly on daily labor law
advice arising in the course of or in relation to the Debtors'
business and the Chapter 11 process, including verification and
endorsement that actions taken by the Debtors to comply with the
Bankruptcy Code do not conflict with the requirements of United
Kingdom labor law.  The Debtors also need assistance on matters
where joint pension and labor law assistance is required.

SCL says it will be more expedient to have the same adviser
dealing with both joint pension and labor law aspects, especially
as the pension and labor law advisors are part of the same
practice group within PwC Legal.

As Joint Pension and Labor Law Counsel, PwC Legal will advise the
Debtors:

   (1) as to issues arising from their or their subsidiaries'
       participation in defined benefit pension schemes
       established under U.K. law, including advice in relation
       to regulatory issues and ceasing to participate;

   (2) on daily issues that arise, including verification and
       endorsement that the Debtors' actions comply with the
       Bankruptcy Code and do not conflict with the requirements
       of the U.K.; and

   (3) on contentious matters, including claims brought against
       the Debtors in any court or employment tribunal.

PwC Legal's services will be paid based on the firm's customary
hourly rates:

      Designation                             Hourly Rate
      -----------                           ---------------
      Partners & Heads of Practice Areas    GBP450 - GBP500
      Assistant Solicitors                  GBP275 - GBP350
      Trainee Solicitors                    GBP150 - GBP170

Darryl Evans, Esq., a member of PwC Legal, assures the Court that
his firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code.  The members of PwC
Legal, its solicitors and barristers do not have any connection
with or represent or hold any interest adverse to the Debtors or
their estates with respect to the matters on which the firm is to
be retained.

Sea Containers Ltd. discloses that PwC Legal is a member of
PricewaterhouseCoopers LLP's network of firms and is the
associated law firm of PwC in the U.K.  It is a separate legal
entity from PwC.

                      About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight   
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).  
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 13; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or  
215/945-7000)


SEA CONTAINERS: Can Lend Up to $7 Million to Non-Debtor Unit
------------------------------------------------------------
Sea Containers Ltd. obtained authority from the Honorable Kevin J.
Carey of the U.S. Bankruptcy Court for the District of Delaware to
provide a secured, intercompany line of credit of up to $7,000,000
to its non-debtor subsidiary Sea Containers Treasury Ltd.

                      Intercompany Funding

Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor LLP,
in Wilmington, Delaware, disclosed that starting in 2002, SCL
initiated an operational restructuring program targeted at
evaluating and selling identified non-core assets held directly
by its foreign, non-debtor subsidiaries.  The Non-Core Asset sale
program requires support from SCL, both in the form of management
oversight and through case flow support.

Mr. Greecher said many of the businesses identified as Non-Core
Assets cannot fully fund their operations on a stand-alone basis
from cash receipts alone because they are cyclical businesses
that have significant funding needs during certain parts of the
year.  Hence, to maintain the operation of the businesses for a
sufficient time to allow for thorough marketing and maximization
of sale value, SCL has been required to fund their operations.

The Debtors believe that the targeted intercompany funding
accomplishes two primary objectives, both aimed at the ultimate
goal of maximizing the value of SCL's assets.

Mr. Greecher related that the Debtors have determined that
meeting the funding needs of certain non-debtor subsidiaries will
preserve the value of Non-Core Assets during a robust marketing
and sale process that will achieve its maximum value.  Also, the
Debtors have identified a need to ease cash flow problems of some
non-debtor subsidiaries that could not survive on their own to
prevent creditors from initiating insolvency or foreclosure
proceedings in foreign jurisdiction that would be detrimental on
the Debtors' reorganization and could destroy value for the
stakeholders.

Before the Debtors' filing for bankruptcy, they formed SC Treasury
as a financing subsidiary that would carry out the business of
funding the operations of international subsidiaries that are or
hold Non-Core Assets.  Throughout the Chapter 11 cases, it has
successfully operated to help fund operations for various non-
debtor subsidiaries.

SCL has identified a process by which funding requests are made
to SC Treasury and reviewed before any intercompany loans are
made to non-debtor foreign subsidiaries.  The SC Treasury
mechanism has proven to be an effective vehicle to preserve value
in the Non-Core Assets and allow for the orderly reorganization
of the Debtors without an undue cash drain, Mr. Greecher noted.

As of March 2, 2007, the cash needs of SCL's non-debtor foreign
subsidiaries have been lower than originally projected.  As of
February 21, about $2,520,000 remained in SC Treasury.  SCL
projects SC Treasury could reallocate the remaining funds and
allow for continued financing of the non-debtor subsidiaries
through March 2007 and will run out of funds after that.

Mr. Greecher told the Court that the Debtors' decision to make
the intercompany loan to facilitate the continued operation of
the SC Treasury funding mechanism for non-debtor foreign
subsidiaries is calibrated to maximize value of their estates for
the benefit of creditors in the form of increasing sale values
for the Non-Core Assets and reducing secondary liability claims
against SCL.  Indirectly, the mechanism avoids the expense,
distraction and potential value-destroying effect of a series of
international insolvency filings for the non-debtor subsidiaries,
he adds.

                        Funding Details

Judge Carey authorized SCL to make intercompany loans available to
non-debtor subsidiary SC Treasury in the form of a line of credit
of up to $6,000,000, repayable on a demand basis, secured by all
assets of the SC Treasury, at an interest equal to the London
Interbank Offered Rate plus 50 basis points per annum.

SC Treasury will be permitted to make first priority secured
loans, repayable on a demand basis, at an interest rate of LIBOR
plus 50 basis points per annum, to Sea Containers Opera Ltd.,
secured by a first priority mortgage on the Opera ferry, in an
aggregate maximum amount of $1,000,000.

SC Treasury will likewise be permitted to make first priority
secured loans, repayable on a demand basis, at an interest rate
of LIBOR plus 50 basis points per annum, to Finnjet Bermuda Ltd.,
secured by a firs priority mortgage on the Finnjet ferry, in an
aggregate maximum amount of $2,500,000.

Moreover, SC Treasury will be permitted to make loans, repayable
on a demand basis, at an interest rate of LIBOR plus 50 basis
points per annum, to SC Finance Ireland Limited in an aggregate
maximum amount of $900,000, which loans are secured by either:

   (i) a first priority security interest in all assets of SC
       Finance; or

  (ii) other security and priority terms as may be agreed by prior
       consent with the Official Committee of Unsecured Creditors
       and the U.S. Trustee.

Subject to prior written consent of the Creditors Committee and
the U.S. Trustee, SC Treasury will be permitted to make loans in
respect of the Helsinki-Tallinn Business, in an aggregate maximum
amount of $3,200,000, either:

   (i) at an interest of LIBOR plus 50 basis points per annum to
       SC Finland Oy and Superseacat Ou, secured by a first
       priority interest in the Superseacat 3 and 4 vessels; or

  (ii) on other security, interest, repayment and priority terms
       as may be agreed.

SC Treasury will be permitted to make additional loans in an
aggregate amount of up to $1,000,000, absent any objections by
either the U.S. Trustee or the Creditors Committee.  Any loan
that does not exceed $50,000 will not require the consent of the
Creditors Committee and the U.S. Trustee.

SC Treasury may be permitted to reallocate funding under the
Intercompany Loan on these terms, subject to certain conditions.

                      About Sea Containers

Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight   
transport and marine container leasing.  Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore.  The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974.  On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.

Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland.  It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.

Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).  
Robert S. Brady, Esq., at Young, Conaway, Stargatt & Taylor
represents the Debtors in their restructuring efforts.  When the
Debtors filed for protection from their creditors, they reported
US$1.7 billion in total assets and US$1.6 billion in total
debts.  (Sea Containers Bankruptcy News, Issue No. 12 and 13;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SI INTERNATIONAL: Moody's Holds Ba3 Rating on $70.4 Mil. Term Loan
------------------------------------------------------------------
Moody's Investors Service affirmed the credit ratings of SI
International Inc.  The rating outlook remains positive.

Moody's affirmed these ratings:

     - $60 million senior secured first lien revolver due 2010,
       Ba3 (LGD 2, 24%)

     - $70.4 million senior secured term loan facility due 2011,
       Ba3 (LGD 2, 24%)

     - Corporate family rating, B1

     - Probability of default rating, B2

     - Speculative grade liquidity rating of SGL-1.

The ratings outlook remains positive.

The affirmation of the corporate family rating of B1 and positive
outlook reflects the improvement in financial metrics, significant
revenue backlog and very good liquidity.  The affirmation also
reflects Moody's concern with the Service Center Operations Team  
contract with the Department of Homeland Security, which has been
extended on an interim basis since June 2006 while the contract is
re-competed this year.  The company's revenue base is small for
the rating category and the loss of a major contract against the
backdrop of a debt financed acquisition strategy, an increase in
competition and a potential shift in government spending
priorities poses a risk for the company.

The rating benefits from a stable revenue base with approximately
99% of sales derived from highly predictable government business.
Revenue stability and visibility also benefit from customer end
market diversity, a robust contract backlog of $1.2 billion, of
which approximately $162 million was funded as of Dec. 30, 2006,
and the staggering of contract renewal dates over the next several
years.

SI International is a provider of information technology and
network solutions to the federal government.
Headquartered in Reston, VA, the company had revenues of $462
million for the twelve months ended Dec. 30, 2006.


SIENA TECHNOLOGIES: Delays Filing of 2006 Form 10-KSB
-----------------------------------------------------
Siena Technologies, Inc. filed with the Securities and Exchange
Commission an extension to file its Annual Report on Form 10-KSB
for the year ended Dec. 31, 2006, reflecting estimated results for
the year ended Dec. 31, 2006, with revenues expected to be
$18.8 million, as compared with $2.8 million for the year ended
Dec. 31, 2005.

The company will make every effort to file its form 10-KSB within
the 15-day extension period permitted under Rule 12b-25.  

The company's Notification of Late Filing as filed on Form 12b-25,
also disclosed these expected financial results for the year ended
Dec. 31, 2006, as compared with the year ended Dec. 31, 2005:

     -- The expected increase in revenues was attributed to a full
        year inclusion of revenues from the company's wholly owned
        subsidiary, Kelley, which was acquired on Sept. 22, 2005.
        Kelley's unaudited revenues for the full year ended Dec.
        31, 2005 were $7.5 million, including the $2.8 million
        from Sept. 22, 2005, through Dec. 31, 2005.  The increase
        in Kelley revenues from 2005 to 2006 is primarily
        attributable to the launch of its new patent pending Race
        and Sports Book product, which accounted for about
        $11.5 million in revenues for the year ended Dec. 31,
        2006, as compared with about $2.5 million for the year
        ended Dec. 31, 2005, attributed to this product.

     -- Gross profit for the year ended Dec. 31, 2006, is expected
        to be $4.1 million, as compared with $332,000 for the year
        ended Dec. 31, 2006.

     -- Selling, general and administrative expenses are expected
        to decrease from $7.9 million for the year ended Dec. 31,
        2005, to $5 million for the year ended Dec. 31, 2006.  The
        SG & A estimate includes about $251,000 of non cash
        employee stock option expense, of which about $162,000 was
        previously unreported and related to the nine months ended
        Sept. 30, 2006.  The decrease of was primarily due to
        about $6.5 million in non cash officer compensation
        expense in 2005 incurred as a result of warrants issued to
        the company's new chief executive and chief financial
        officers.  The CFO has since left the company.  SG & A
        estimate is offset by an increase in operating expenses of
        $3.7 million predominately attributable to the inclusion
        of a full year's worth of salaries and other SG & A
        expenses incurred at Kelley, which was acquired in
        September of 2005.

     -- Cash and equivalents on Dec. 31, 2006 are expected to be
        $7,800, which was about $400,000 less than the balances at
        Dec. 31, 2005.  

The company's revenues have decreased for the last three quarters
and it expects a similar trend during the first and second quarter
of 2007, while it reestablishes its business development, sales
and marketing efforts and services and finalizes other ongoing
projects.  This downturn in sales has continued to present the
company with cash flow shortages on an ongoing basis.

The company stated that if its fundraising efforts are
unsuccessful, it may be in default under the terms of all of its
loan agreements.  If the company defaults under the terms of its
loan agreements it could cause substantial dilution to the
Company's other shareholders.

"We have made significant strides over the past year restructuring
our company such that upon raising additional financing, we will
then be in a position from which we can strengthen our balance
sheet and launch our growth strategy and meet our goals of
positive operating results," commented Jeff Hultman, CEO of Siena
Technologies.

                      Comments on Accounting

The company noted that the delay in filing its Form 10-KSB is due
primarily to unresolved comments received from the SEC with regard
to its Form 10-KSB at and for the year ended Dec. 31, 2005, its
Forms 10-QSB for the three quarters ended Sept. 30, 2006, and its
Form 8-K filed on Nov. 17, 2006.  The company already addressed
certain comments with regard to the accounting for warrants issued
in exchange for common stock and the related fair market value
adjustments to the associated derivative liability, and the
accounting for stock options issued to employees and as a result,
expects to restate its unaudited financial statements filed on
Forms 10-QSB for the three quarters ended Sept. 30, 2006.  
However, these comments relating to the company's accounting for
are still being researched by the company and are as of this date
still unresolved:

      (i) the company's issuance of convertible debentures;

     (ii) goodwill and other assets resulting from the
          acquisitions of Kelley Communication Company, Inc. in
          September of 2005 and Com Services, Inc. in January of
          2005; and

    (iii) the rescission of a prior issuance of the company's
          common stock for services rendered in 2005.

Since the accounting for these transactions is still being
researched, the company was not able to complete and file its Form
10-KSB at and for the year ended Dec. 31, 2006, by the filing due
date of April 2, 2007.  None of the restatements are expected to
impact revenues or gross margins as previously reported.

                     About Siena Technologies

Siena Technologies, formerly known as Network Installation Corp.,
through its wholly owned subsidiary, Kelley Technologies, designs,
develops and integrates communication technology and system
networks for the resort and gaming industry as well as luxury
high-rise condo developments.

Kelley Technologies developed a patent-pending, proprietary next
generation Race & Sports Book platform designed for the gaming
industry and remains committed to developing the most advanced
technology solutions to meet the desires of its clients.

                           *     *     *

Jasper + Hall PC expressed substantial doubt about Network
Installation Corp.'s ability to continue as a going concern after
auditing the company's financial statements for the year ended
Dec. 31, 2005.   The auditing firm pointed to the Company's
accumulated deficit of $25,168,968 and its generation of losses
from operations.


STRUCTURED ASSET: S&P Places Class B2 Loan's Rating on Neg. Watch
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on classes
B1 and B2 from Structured Asset Investment Loan Trust 2005-HE3 on
CreditWatch with negative implications.  Concurrently, the ratings
on the remaining classes from this transaction were affirmed.
     
The CreditWatch placements reflect a reduction in projected credit
support due to high delinquencies and adverse collateral
performance.  As of the March 2007 distribution date, total
delinquencies were 19.25%, with 12.01% categorized as seriously
delinquent (90-plus-days, foreclosure, and REO).  During the
previous two remittance periods, monthly losses outpaced excess
interest by approximately 1.25x.  The failure of excess interest
to cover monthly losses has resulted in an overcollateralization
deficiency of $960,108.  Cumulative realized losses represent
0.50% of the original pool balance.
     
Standard & Poor's will continue to monitor the performance of this
transaction.  If delinquencies continue to translate into realized
losses that exceed excess interest during the coming months, S&P
will likely take further negative rating actions.  Conversely, if
excess interest is sufficient to cover monthly losses and O/C
rebuilds toward its target balance, S&P will affirm the ratings
and remove them from CreditWatch.  The affirmations are based on
credit support percentages that are sufficient to maintain the
current ratings.
     
Credit support for this transaction is provided through a
combination of subordination, excess spread, and O/C.  The
collateral consists of 30-year, fixed- and adjustable-rate
subprime mortgage loans secured by first liens on residential
properties.
  
              Ratings Placed on Creditwatch Negative
   
         Structured Asset Investment Loan Trust 2005-HE3

                                Rating
                                ------
                 Class     To              From
                 -----     --              ----
                  B1       BBB-/Watch Neg   BBB-
                  B2       BB+/Watch Neg    BB+

                         Ratings Affirmed
   
          Structured Asset Investment Loan Trust 2005-HE3
   
                     Class                 Rating
                     -----                 ------
                     A1, A2, A3, A4, A5      AAA
                     M1                      AA+
                     M2                      AA
                     M3                      AA-
                     M4                      A+
                     M5                      A
                     M6, M7                  A-
                     M8                      BBB+
                     M9, M10, M11            BBB


SUTTER CBO: Credit Enhancement Prompts S&P to Raise Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on the class
B-2 notes issued by Sutter CBO 2000-2 Ltd., an arbitrage corporate
high-yield CBO transaction managed by Wells Fargo Bank N.A., to
'CCC' from 'CCC-' and removed it from CreditWatch, where it was
placed with positive implications Feb. 23, 2007.  At the same
time, the ratings on the class A-3L, B-1, and B-1L notes were
affirmed and removed from CreditWatch, where they were placed with
positive implications Feb. 23, 2007.  Concurrently, the 'AAA'
rating on the class A-2L notes was affirmed.
     
The raised rating reflects factors that have positively affected
the credit enhancement available to support the notes since the
transaction closed in January 2001.  Since that time, the
transaction has paid down $92.0 million to the class A-1 notes and
approximately $23 million to the class A-2L notes.
     
Standard & Poor's will continue to review the results of current
cash flow runs generated for Sutter CBO 2000-2 Ltd. to determine
the level of future defaults the rated tranches can withstand
under various stressed default timing and interest rate scenarios
while still paying all of the interest and principal due on the
notes.  The results of these cash flow runs will be compared with
the projected default performance of the performing assets in the
collateral pool to determine whether the ratings currently
assigned to the notes remain consistent with the amount of credit
enhancement available.
   
       Rating Raised and Removed From Creditwatch Positive
   
                      Sutter CBO 2000-2 Ltd.

                      Rating
                      ------
           Class    To      From               Balance
           -----    --      ----               -------
            B-2     CCC     CCC-/Watch Pos     $19,000,000
   
      Ratings Affirmed and Removed From Creditwatch Positive
    
                      Sutter CBO 2000-2 Ltd.

                        Rating
                        ------
            Class    To      From              Balance
            -----    --      -----             -------
             A-3L    AA+     AA+/Watch Pos     $42,000,000
             B-1     BB      BB/Watch Pos      $24,000,000
             B-1L    BB      BB/Watch Pos      $16,000,000
    
                         Rating Affirmed
   
                      Sutter CBO 2000-2 Ltd.

                   Class   Rating      Balance
                   -----   ------      -------
                   A-2L      AAA       $82,809,000
   

SYNOVICS PHARMA: Posts $2.4 Mil. Net Loss in Quarter Ended Jan. 31
------------------------------------------------------------------
Synovics Pharmaceuticals Inc. reported a net loss of $2.4 million
on net revenues of $5.4 million for the first quarter ended
Jan. 31, 2007.  This compares with a net loss of $1.2 million on
net revenues of $1,640 for the same period ended Jan. 31, 2006.

The increase in net revenues represents sales from over the
counter products of the company's newly acquired subsidiary, Kirk
Pharmaceuticals and the generic prescription drug of the company's
other newly acquired subsidiary, ANDApharm.  Kirk's four largest
customers represented approximately 65% of the sales for the
period.

Cost of revenues for the three-month period ended Jan. 31, 2007,
was $4.1 million compared to $256 for the three month period ended  
Jan. 31, 2006.

Research and development expenses for the three-month period ended
Jan. 31, 2007 was $255,000 compared to $160,848 for the three-
month period ended Jan. 31, 2006.  This increase is due primarily  
to research and development activities at Kirk Pharmaceuticals and  
ANDApharm.  

Selling, general, and administrative expenses for the three-month
period ended Jan. 31, 2007, was $1.7 million as compared to
$742,831 for the three month period ended Jan. 31, 2006.  This  
increase is due primarily to operating activities associated with
the company's newly acquired subsidiaries and an increase in
salaries, consulting, travel, accounting and legal expenses.

At Jan. 31, 2007, the company's balance sheet showed $39.2 million
in total assets, $27.2 million in total liabilities, and
$12 million in total stockholders' equity.

The company's balance sheet at Jan. 31, 2007, also showed strained
liquidity with $8.3 million in total current assets available to
pay $14.9 million in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended Jan. 31, 2007, are available for
free at http://researcharchives.com/t/s?1d18

To date, the company's operations have not generated sufficient
revenues to satisfy the company's operating capital needs.  The
company has financed its operations primarily through the sale of
its common stock, warrants and debt by means of private  
placements.  Cash and cash equivalents were $2,770,939 at
Jan. 31, 2007, as compared with $222,314 at Jan. 31, 2006.

Net cash used in operating activities during the three-month  
period ended Jan. 31, 2007, was $137,017, compared with net cash
used in operating activities of $820,168 during the three-month
period ended Jan. 31, 2006.

Net cash provided by financing activities during the three-month
period ended Jan. 31, 2007, was $420,143 which resulted from the
net proceeds from the issuance of notes and warrants in the 2006
Bridge Note Financing and the sale of units of the company's  
common stock and warrants in the 2007 Private Placement.  This
compares with net cash provided by financing activities of
$1 million during the three-month period ended Jan. 31, 2006.

                       Going Concern Doubt

As reported in the Troubled Company Reporter on Feb. 22, 2007,
Miller Ellin & Company LLP, in New York, expressed substantial
doubt about Synovics Pharmaceuticals Inc.'s ability to continue as
a going concern after auditing the company's consolidated
financial statements for the years ended Oct. 31, 2006, and 2005.  
The auditing pointed to the company's significant losses and
negative cash flows.

                   About Synovics Pharmaceuticals

Based in Phoenix, Arizona, Synovics Pharmaceuticals Inc.
(OTC BB: SYVC.OB) -- http://www.synovics.com/-- is a specialty
pharmaceutical company engaged in the development, manufacturing
and commercialization of oral controlled-release generic drugs and
improved formulations of previously approved drugs.


TAM CAPITAL: Fitch Rates Proposed $200 Million Senior Notes at BB
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' rating to the proposed issuance
of $200 million of senior guaranteed notes due 2017 by TAM Capital
Inc., a wholly owned financing vehicle of TAM Linhas Aereas S.A
incorporated with limited liability in the Cayman Islands.

The notes are unconditionally guaranteed by TAM Linhas Aereas S.A
and TAM S.A.  Proceeds from the offering will be, primarily, to
finance fleet renewal and expansion, with the remainder used for
general corporate purposes.  Fitch has Foreign and Local Currency
Issuer Default Ratings on TAM of 'BB' and a national scale rating
of 'A+(bra)' on the issuer and on TAM's BRL500 million senior
unsecured debentures due 2012.  The Rating Outlook on all
corporate ratings is Stable.

The ratings reflect the company's market-leading position in the
Brazilian air passenger transportation sector, adequate leverage
indicators and positive free cash flow generation.  The ratings
also reflect exposure to fluctuations in jet fuel prices and
exchange rates, the strong correlation of TAM's activities with
the performance of the domestic economy, high operating leverage
and competitive threats.  The ratings incorporate the company's
fleet expansion plans and intention to maintain conservative
leverage ratios.

Over the past several years, revenues have grown strongly,
operating margins have improved and the company has maintained
positive cash generation.  During 2006, the number of passengers
transported by TAM increased by 28% and the load factor reached
74%, well above the break-even load factor of 64%.  Net revenues
grew 30% due to strong growth in the number of passenger-
kilometers transported of 33% and seats supply of 27%, which was
supported by the expansion of the fleet, higher average flight
length, greater capacity utilization rate and more frequencies.  
Free cash flow generation reached BRL557 million.

TAM continues to improve operating profitability, enhancing its
cost structure by raising capacity utilization, operating newer
aircraft with lower maintenance costs and fuel consumption and
reducing commercial and overhead expenses.  The RASK (revenue per
available seat kilometer) - CASK (cost per available seat
kilometer) spread improved to BRL2.8 in 2006 from BRL1.5 in 2005.
During 2006, cash generation measured by EBITDAR reached BRL1.7
billion, a significant growth of 52% from the prior year, and the
EBITDAR margin reached 23%, among the highest in the airline
industry worldwide.

TAM's financial profile and credit protection measures continue to
improve from strong cash flow generation.  At Dec. 31, 2006, total
adjusted debt to EBITDAR reached 3.7 times (x) and total adjusted
debt net of cash to EBITDAR reached 2,3x .  Over the next several
years, Fitch Ratings expects these ratios to deteriorate
moderately as a result of the anticipated incorporation to TAM's
fleet of 37 new aircraft by 2010 but should remain commensurate
with the existing rating category.  Total adjusted debt to EBITDAR
should range between 3.5x and 4.5x over the next several years as
higher debt related to the company's expansion plan is off-set by
expected increases in EBITDAR.

TAM maintains a solid liquidity position, with BLR2,4 billion of
cash and marketable securities at the end of 2006.  At Dec. 31,
2006, total adjusted debt reached BRL6.3 billion, which includes
BRL568 million of debentures and approximately BRL683 million of
capital leases and working capital debt.  The company also has
off-balance-sheet liabilities related to aircraft operating
leases, which totaled BRL5.1 billion at Dec. 31, 2006. The entire
aircraft fleet is leased.

In recent months, the Brazilian airline sector has been affected
by a structural crisis related to infrastructure bottlenecks,
which caused flight cancellations and delays well above normal
levels, affecting all domestic airlines' performance and raising
uncertainties regarding the sector's ability to continue to grow
capacity.  The crisis made clear the need for government
investments in infrastructure and improved efficiency on behalf of
the airlines.  As Fitch anticipated, TAM showed deterioration in
profitability during the fourth quarter of 2006, as it incurred
incremental costs such as extra passenger and aircraft ground time
expenses.  Nevertheless, for the full year, the company posted
record financial results.  During 2007, Fitch understands that the
scenario will remain relatively unstable, considering that the
necessary investments for improving infrastructure are expected in
the long-term.  However, even under these turbulent conditions,
the Brazilian airline market has grown significantly during the
first quarter of 2007, by approximately 12% according to Agencia
Nacional de Aviacao Civil.  In Fitch's opinion, TAM's solid
financial profile and cash resources should help mitigate short-
term risks and volatility related to domestic sector turbulence.

Over the next several years, TAM will face new challenges to
maintain market leadership in a strongly competitive environment,
TAM's main competitor, GOL Linhas Aereas S.A, cost-efficient
operator, recently announced a agreement to acquire VRG S.A.,
which operates the brand name Varig and owns a significant number
of slots in the most important domestic airport, Congonhas, where
TAM has a important presence and market share participation. An
increase in competition resulting from supply pressures and
aggressive fare discounting, coupled with lower aircraft load
factors, would inevitably impact the strong credit profile of the
Brazilian airline companies.

TAM is a holding company that operates through its subsidiaries
TAM Linhas Aereas and TAM Mercosur.  The company offers regular
air passenger transportation services in Brazil and abroad.  It
covers the entire territory of Brazil, serving 48 national
destinations directly and an additional 26 destinations through
regional alliances with other airline companies.  TAM also serves
11 international destinations and offers connections to several
cities outside Brazil through agreements with American Airlines
and Air France.


TENET HEALTHCARE: Executive Vice-President T. Pullen to Retire
--------------------------------------------------------------
Tenet Healthcare Corporation disclosed that Timothy L. Pullen,
executive vice president and chief accounting officer, has decided
to retire once the company completes its financial reporting for
the first quarter ended March 31, 2007.

The company also said that Daniel J. Cancelmi, 44, has been named
Tenet's principal accounting officer, effective April 2.  In
addition, Mr. Cancelmi will continue as vice president and
controller, responsible for financial reporting, internal controls
over financial reporting under Section 404 of the Sarbanes-Oxley
Act, accounts payable, government programs, payroll, and capital
and property accounting.  He reports to Biggs C. Porter, chief
financial officer.

"Tim Pullen's unquestioned integrity and long experience have
played an invaluable role in helping Tenet resolve its serious
financial and legal challenges over the past four years," Porter
said.  "With those challenges now behind us, we respect his
decision to retire from Tenet and pursue other endeavors at this
time, and we wish him well."

Porter added, "We are fortunate to have someone of Dan Cancelmi's
caliber and ability already with us, and we look forward to his
leadership as our new principal accounting officer."

Pullen, 51, joined The Hillhaven Corporation, a subsidiary of one
of Tenet's predecessor companies, in 1983, eventually becoming
that unit's vice president, finance.  He joined Tenet's corporate
finance team in 1995 as vice president and controller.  He was
named to his current position in August 2003.

Mr. Cancelmi joined Tenet in November 1998, as chief financial
officer of Hahnemann University Hospital in Philadelphia.  He was
promoted to the company's vice president and assistant controller
in September 1999, and to his current position in September 2004.

Before joining Tenet, Mr. Cancelmi served as senior director of
the Allegheny Health, Education and Research Foundation in
Pittsburgh, and prior to that served nine years in various
positions with the accounting firm of Coopers & Lybrand in
Pittsburgh and New York City.

He is a certified public accountant and holds a bachelor of
science degree in accounting from Duquesne University in
Pittsburgh.

                           About Tenet

Tenet Healthcare Corporation -- http://www.tenethealth.com/--  
(NYSE: THC) through its subsidiaries, owns and operates acute care
hospitals and related health care services.  Tenet's hospitals aim
to provide the best possible care to every patient who comes
through their doors, with a clear focus on quality and service.  

                      *      *      *

As reported in the Troubled Company Reporter on March 22, 2007,
Fitch Ratings affirmed Tenet Healthcare Corp.'s Issuer Default
Rating at 'B-'; Secured bank facility at 'BB-/RR1'; and Senior
unsecured notes at 'B-/RR4'.


TENET HEALTHCARE: Former Fla. Gov. Jeb Bush Appointed as Director
-----------------------------------------------------------------
Tenet Healthcare Corporation disclosed Thursday that former
Florida Gov. Jeb Bush has been appointed a director by the
company's board.  He becomes the board's tenth member.

Bush, 54, was elected Florida's governor in 1998 and retired in
January 2007, after completing two successful terms in office.   
While governor, he was instrumental in pursuing state tax cuts,
reforming the state educational system and restructuring state
health care programs.

"We are honored that Gov. Bush has agreed to join our board," said
Edward Kangas, the non-executive chairman of Tenet's board.   
"Tenet will greatly benefit from his broad knowledge of health
care and his deep experience with government and regulatory
issues.  His wisdom and compassion are a perfect complement to our
strong, independent board."

Gov. Bush said, "As I have researched Tenet, I have been very
impressed by the company's commitment to improving patient care as
well as the board's commitment to strong corporate governance and
transparency.  I care deeply about the future of health care in
this country, and I'm delighted to be affiliated with Tenet, a
leading company in this field."

Former Sen. J. Robert Kerrey (D-Neb.), chairman of the nominating
and corporate governance committee of Tenet's board, said, "All of
us on the board are delighted that former Gov. Jeb Bush has chosen
Tenet as the first corporate board he will join since leaving
office.  I believe his decision to join us reflects the real
strides the company has made in recent years to build a solid
foundation for future growth based on integrity and quality."   

Trevor Fetter, Tenet's president and chief executive officer,
said, "Gov. Bush was a successful, hands-on chief executive of a
very large and diverse state.  Florida is Tenet's second largest
market, and his counsel and advice on our board will be invaluable
to me and to our hospital managers."

Gov. Bush was born in Midland, Texas, and graduated magna cum
laude from the University of Texas at Austin with a bachelor's
degree in Latin American studies.  After graduation, he worked in
various positions at Texas Commerce Bank in Houston and in
Venezuela.  He and his family moved to South Florida in 1980,
where he worked as a real estate executive.

He began his political career in 1986 as chairman of the Dade
County Republican Party.  After an unsuccessful campaign for
Florida governor in 1994, he formed a non-profit think tank to
help influence public policy in the state before winning the
governorship in 1998.

Gov. Bush will stand for election by shareholders to a one-year
term as director at Tenet's annual meeting, which will be held in
Dallas on May 10.  The company will amend its recently filed proxy
statement and mail supplemental information and new proxy cards to
its shareholders to add Gov. Bush to the list of director
nominees.

                           About Tenet

Tenet Healthcare Corporation -- http://www.tenethealth.com/--  
(NYSE: THC) through its subsidiaries, owns and operates acute care
hospitals and related health care services.  Tenet's hospitals aim
to provide the best possible care to every patient who comes
through their doors, with a clear focus on quality and service.  

                      *      *      *

As reported in the Troubled Company Reporter on March 22, 2007,
Fitch Ratings affirmed Tenet Healthcare Corp.'s Issuer Default
Rating at 'B-'; Secured bank facility at 'BB-/RR1'; and Senior
unsecured notes at 'B-/RR4'.


TERAYON COMMUNICATION: Cuts Net Loss to $3.8 Million in Year 2006
-----------------------------------------------------------------
Terayon Communication Systems Inc. incurred a net loss for the
year ended Dec. 31, 2006, of $3.8 million on revenues of
$76.4 million, as compared with a net loss for the year ended
Dec. 31, 2005, of $26.9 million on revenues of $90.7 million.

Balance sheet as of Dec. 31, 2006, showed total assets of
$51.9 million and total liabilities of $32.1 million, resulting to
total stockholders' equity of $19.8 million.  Accumulated deficit
increased slightly by $3.8 million at Dec. 31, 2006, from an
accumulated deficit year earlier.

                        Management Analysis

The company has not been profitable since inception.  At Dec. 31,
2006, its accumulated deficit was $1.1 billion.  The company had a
net loss of $3.8 million for the year ended Dec. 31, 2006, a net
loss of $27 million for the year ended Dec. 31, 2005, and a net
loss of $47.1 million for the year ended Dec. 31, 2004.  

The company's ability to grow its business and attain
profitability is dependent on its ability to effectively compete
in the marketplace with its current products and services, develop
and introduce new products and services, contain operating
expenses and improve its gross margins, as well as continued
investment in equipment by network operators and content
aggregators.

Finally, the company expects to benefit from a lower expense base
resulting in part from the series of cost reduction initiatives
that occurred in 2005 and 2006, along with continued focus on cost
containment.  However, despite these efforts, it may not succeed
in attaining profitability in the near future, or at all.

At Dec. 31, 2006, the company had $20.3 million in cash, cash
equivalents and short-term investments, as compared with
$101.3 million at Dec. 31, 2005, and $97.7 million at Dec. 31,
2004.  The $81 million decrease from Dec. 31, 2005, to Dec. 31,
2006, was primarily related to the repurchase in full of the
company's outstanding convertible subordinated notes due August
2007 including all accrued and unpaid interest and related fees in
March 2006 for $65.6 million, operating activities and legal,
accounting and consulting costs associated with the company's
internal investigation and the re-audit and restatement of its
financial statements for the years ended Dec. 31, 2003, 2004, and
for the first two quarters of 2005.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1d23

                           About Terayon

Headquartered in Santa Clara, California, Terayon Communication
Systems Inc. (Other OTC: TERN.PK) -- http://www.terayon.com/--  
provides real-time digital video networking applications to cable,
satellite and telecommunication service providers worldwide.

                           *     *     *

The company's long-term local and foreign issuer credits carry
Standard & Poor's B- rating.


THERMADYNE HOLDINGS: Posts $23 Million Net Loss in Full Year 2006
-----------------------------------------------------------------
Thermadyne Holdings Corporation reported a net loss of $23 million
on net sales of $451.3 million for the year ended Dec. 31, 2006,
as compared with a net loss of $31.4 million on net sales of
$414.7 million for the year ended Dec. 31, 2005.

Net sales for the 12 months ended Dec. 31, 2006, increased as a
result of increased demand and new product initiatives and about
$20 million as a result of price increases and was partially
offset by a decrease in net sales of about $2 million related to
market share and $1 million as a result of the impact of foreign
currency translation.  Net sales in the year of 2006 were reduced
by $19 million for rebates paid to customers compared to $15
million in the same period of 2005.  The increase in rebates
results from increased sales volume to customers achieving volume
levels providing higher rebate percentages.

The company's balance sheet showed total assets of $518.1 million
and total liabilities of $414.6 million, resulting to total
stockholders' equity of $103.5 million.  Its accumulated deficit
increased to $88.6 million as of Dec. 31, 2006, from $65.6 million
as of Dec. 31, 2005.

                     Discontinued Operations

On Dec. 30, 2006, the company committed to sell its Brazilian
manufacturing operation which was established pursuant to a
10-year agreement expiring in 2008 with a major customer requiring
Brazilian based manufacturing.  Employees of Thermadyne Brazil
were informed of this decision on Feb. 16, 2007.  The company
expects to dispose of the operation no later than September 2007.  
The company is seeking a buyer or buyers for the property and
equipment.  As a result, the company recorded an impairment loss
of about $15.2 million, net of tax, in the fourth quarter of 2006.  
The company estimates that the Brazilian operations may require
cash outlays of $3 million to $4 million during 2007.

On Dec. 30, 2006, the company committed to divest two of its South
African subsidiaries, Maxweld & Braze Pty. Ltd. and Thermadyne
South Africa (Pty.) Ltd., as part of an evaluation of its non-core
operations.  On Feb. 5, 2007, the company entered into an
agreement to sell the subsidiaries.  The selling price is stated
in South African Rand, which converts to about $18 million,
assuming a conversion rate of 7.07 Rand per U.S. dollar, with
$14 million payable at closing and the balance due no later than
three years from the closing date. The closing of the divestitures
is expected to take place in April 2007.  The company intends to
use the proceeds from the proposed divestitures to further reduce
debt.  As a result of this decision, the company recorded an
impairment loss of about $9.2 million, net of tax, in the fourth
quarter of 2006, which was recorded as a component of discontinued
operations.

                  Liquidity and Capital Resources

In 2006, the company's net cash used in continuing operations was
$1.9 million.  Net debt repayments were $2 million, which included
$20 million in additional borrowings under the Second-Lien
Facility that was used to repay the Term Loan and Revolver
resulting in additional availability under the Revolver.

In 2007, the company anticipates its capital expenditures will be
approximately $15 million.  In addition, the company expects its
debt service obligations related to capital leases and foreign
credit lines, excluding interest expense, will be about
$1.4 million and $700,000, respectively.  It expects operating
cash flow, together with available borrowings under the Revolver,
will be sufficient to meet our anticipated operating expenses,
capital expenditures and the debt service requirements of the
Credit Agreement and Second-Lien Facility, the Notes and our other
long-term obligations for 2007, as well as to maintain compliance
with the related financial covenants.

At Dec. 31, 2006, the company and its U.S. subsidiaries are
borrowers under a Second Amended and Restated Credit Agreement, as
amended.  The Credit Agreement consists of a $70 million revolving
loan commitment and a $2.1 million delayed draw term loan.

At Dec. 31, 2006, the company was in compliance with its financial
covenants, as a result of amendments received in March 2007, which
increased the company's maximum leverage ratio and decreased the
minimum fixed charge ratio, effective 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?1d19

                          About Thermadyne

Based in St. Louis, Missouri, Thermadyne Holdings Corporation
(Pink Sheets: THMD) -- http://www.Thermadyne.com/-- markets  
cutting and welding products and accessories under a variety of
brand names including Victor(R), Tweco(R), Arcair(R), Thermal
Dynamics(R), Thermal Arc(R), Stoody(R), and Cigweld(R).  Its
common shares trade under the symbol THMD.PK.

                          *     *     *

As reported in the Troubled Company Reporter on April 10, 2007,
Standard & Poor's Ratings Services placed its ratings on
Thermadyne Holdings Corp., including its 'CCC' corporate credit
rating, on CreditWatch with positive implications following the
company's successful filing of its 2006 Form 10-K and the most
recent amendments to its credit facility.


U.S. CONCRETE: Joint Venture Inks New $25 Million Credit Facility
-----------------------------------------------------------------
U.S. Concrete Inc. disclosed that on April 6, 2007, its joint
venture in Michigan entered into a revolving credit facility that
provides for borrowings of up to $25 million.
    
Superior Materials Holdings, LLC and its subsidiaries, owned 60%
by U.S. Concrete and 40% by the Edw. C. Levy Co., intends to use
amounts available under the credit facility for working capital
and other general corporate purposes.  The credit facility is
secured by substantially all the assets of Superior Materials and
matures on April 1, 2010.  Availability under the credit facility
is subject to a borrowing base of real property, net accounts
receivables and inventory.
    
At April 6, 2007, there were no outstanding borrowings under the
credit facility and the amount of the available credit was
$5 million.  The available credit is expected to increase when the
receivables and inventories of Superior Materials are added to and
included in the borrowing base.
    
"The revolving credit facility should provide the company's joint
venture the liquidity necessary to execute its business plans for
the next several years in Michigan.  None of the contributing
partners have guaranteed the joint venture's obligations under its
credit facility.  The company's lending partner is Comerica Bank
and the company expects the joint venture to have a great working
relationship with these companies in the future," Robert D. Hardy,
U.S. Concrete's senior vice president and chief financial officer,
said.
    
The credit facility contains customary restrictive covenants
restricting, among other things, Superior Materials'
distributions, acquisitions, certain asset sales, indebtedness and
liens.  It also generally limits Superior Material's capital
expenditures and will require Superior Materials to maintain
compliance with specified financial requirements. The credit
facility provides that specified change of control events would
constitute events of default.
   
Superior Materials was formed effective April 1, 2007 when U.S.
Concrete contributed its ready-mixed concrete and related concrete
products assets in Michigan to the joint venture in exchange for a
60% ownership interest, while the Edw. C. Levy Co. contributed all
of its ready-mixed concrete and related concrete products assets
for a 40% ownership interest.

The joint venture consists of 28 ready-mixed concrete plants, a
24,000-ton cement terminal and approximately 300 ready-mixed
concrete trucks.  Combined revenues for the joint venture on a pro
forma basis were $109 million for 2006, on ready-mixed concrete
volume of 1.4 million cubic yards.
   
The Edw. C. Levy Co. is one of the aggregates producers in
Michigan.  The joint venture has entered into a long-term
aggregates supply agreement with the Edw. C. Levy Co., which
provides the joint venture with aggregates from multiple Levy
locations.
   
                         About U.S. Concrete

Headquartered in Houston, Texas, U.S. Concrete, Inc. (NASDAQ:
RMIX) -- http://www.us-concrete.com/-- provides ready-mixed   
concrete and related concrete products and services to the
construction industry in several major markets in the United
States.  The company has 140 fixed and nine portable ready-mixed
concrete plants, nine pre-cast concrete plants, three concrete
block plants and eight aggregates facilities.  During 2006, these
facilities produced 8.7 million cubic yards of ready-mixed
concrete, 4 million eight-inch equivalent block units and
4.6 million tons of aggregates.

                          *     *     *

U.S. Concrete Inc.'s 8-3/8% Senior Subordinated Notes due 2014
carry Moody's Investors Service's B2 rating and Standard & Poors'
B- rating.


US LEC: December 31 Balance Sheet Upside-Down by $287.7 Million
---------------------------------------------------------------
US LEC Corp.'s balance sheet as of Dec. 31, 2006, reflected total
stockholders' deficiency of $287.7 million, resulting from total
assets of $237.5 million and total liabilities of $525.2 million.  
It recorded retained deficit of $388.1 million as of Dec. 31,
2006, as compared with retained deficit of $353.5 million as of
Dec. 31, 2005.

For the year ended Dec. 31, 2006, the company had a net loss of
$16.7 million on revenue of $424.2 million, as compared with a net
loss of $38.6 million on revenue of $387.7 million for the year
ended Dec. 31, 2005.  

About 96% of the company's revenue is currently derived from two
sources, end users and carrier charges.  About 4% of its revenue
is derived from other sources, including wholesale customers,
installation revenue, and other miscellaneous sources.  The
increase in total revenue in 2006 was due entirely to an increase
in end customer revenue, as carrier charges decreased
significantly in 2006 from 2005.

                          PAETEC Merger

On Feb. 28, 2007, PAETEC Corp. completed its combination, which
was effected by two mergers, with US LEC Corp., creating PAETEC
Holding Corp. and one of the largest competitive carriers in the
U.S.  Before the merger, PAETEC Holding Corp. was a wholly owned
subsidiary of PAETEC Corp. formed by PAETEC Corp. to complete the
merger.  As a result of the merger, PAETEC Corp. and US LEC Corp.
became wholly owned subsidiaries of PAETEC Holding.

                  Liquidity and Capital Resources

The restricted cash balance of less than $100,000 as of Dec. 31,
2006 and 2005, serves as collateral for letters of credit related
to certain office leases.  In addition, the non-current portion of
restricted cash of $400,000 and $500,000 is included in other
assets in the consolidated balance sheet as of Dec. 31, 2006, and
2005, respectively.  Restricted cash is utilized to secure the
company's performance of obligations such as letters of credit to
support leases or deposits in restricted use accounts.  Cash
capital expenditures were about $29.4 million in 2006, most of
which were incurred to support new customer growth.  The company
expects to spend similar amounts for capital in 2007 unless its
deployment of future service offerings results in somewhat higher
spending levels.  It believes existing cash on hand of about
$42.6 million would be sufficient to fund operating, investing and
debt service requirements in 2007.

Since the company's public offering of about $87.1 million of
common stock in April 1998, it has funded operations and capital
needs through borrowings under a secured credit facility and
private placements of equity and debt securities.  The company
exchanged the privately placed notes for publicly registered notes
in December 2004.  In October 2005, the company entered into a
$10 million Revolving Credit Facility, but no advances have been
made under this facility.  In addition, the company has raised
over $12 million between 1998 and 2006 through the purchase of US
LEC common stock by employees under the company's stock plans.

On the date of the Merger with PAETEC, the company gave
irrevocable notice to redeem the Notes as of March 30, 2007.  The
Notes including the redemption fee of $8.25 million and all
accrued and unpaid interest through March 30, 2007, were paid to
the trustee in full on February 28, 2007.  Also as a result of the
Merger, the $10 million Revolving Credit Facility has been
terminated.

A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?1d1a

                           About US LEC

Headquartered in Charlotte, North Carolina, US LEC Corp. --
http://www.uslec.com/-- provides IP, data and voice solutions to  
medium and large businesses and enterprise organizations
throughout 16 eastern states and the District of Columbia.  US LEC
offers advanced, IP-based, data and voice services such as MPLS
VPN and Ethernet, as well as comprehensive Dynamic T(SM) VoIP-
enabled services and features.  The company also offers local and
long distance services and data services such as frame relay,
Multi-Link Frame Relay and ATM.  US LEC provides complementary
services, including conferencing, data backup and recovery, data
center services and Web hosting, as well as firewall and router
services for data networking.  US LEC also offers selected voice
services in 27 additional states and provides enhanced data
services, selected Internet services and MegaPOP(R) nationwide.


WACHOVIA BANK: Moody's Holds Low-B Ratings on Two Certificates
--------------------------------------------------------------
Moody's Investors Service upgraded the ratings of eight classes
and affirmed the ratings of eight classes of Wachovia Bank
Commercial Mortgage Trust, Commercial Mortgage Pass-Through
Certificates, Series 2002-C1:

    - Class A-2, $51,961,483, affirmed at Aaa
    - Class A-3, $135,167,000, affirmed at Aaa
    - Class A-4, $404,157,000, affirmed at Aaa
    - Class IO-1, Notional, affirmed at Aaa
    - Class IO-2, Notional, affirmed at Aaa
    - Class B, $35,627,000, affirmed at Aaa
    - Class C, $42,752,000, upgraded to Aaa from Aa1
    - Class D, $9,500,000, upgraded to Aaa from Aa2
    - Class E, $13,063,000, upgraded to Aa1 from A1
    - Class F, $16,626,000, upgraded to Aa3 from A3
    - Class G, $13,063,000, upgraded to A2 from Baa1
    - Class H, $15,438,000, upgraded to Baa1 from Baa3
    - Class J, $17,814,000, upgraded to Ba1 from Ba2
    - Class K, $4,750,000, upgraded to Ba2 from Ba3
    - Class M, $7,036,000, affirmed at B2
    - Class N, $4,690,000, affirmed at B3

As of the March 15, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 15.0%
to $807.4 million from $950.0 million at securitization.  The
Certificates are collateralized by 145 loans, ranging in size from
less than 1.0% to 2.4% of the pool, with the top 10 loans
representing 22.4% of the pool.  Twenty four loans, representing
19.9% of the pool, have defeased and are collateralized by U.S.
Government securities.

The pool has realized a loss of approximately $60,000. Currently
there is one loan, representing 1.0% of the pool, in special
servicing.  Moody's is not estimating a loss on this loan
currently.  Thirty four loans, representing 19.0% 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 96.8% and 81.7%, respectively, of the pool.
Moody's weighted average loan to value ratio is 82.2%, compared to
83.3% at Moody's last full review in February 2006 and compared to
89.6% at securitization.  Moody's is upgrading Classes C, D, E, F,
G, H, J and K due to defeasance, increased credit support and
stable overall pool performance.

The top three loans represent 6.7% of the pool.  The largest loan
is the Marketplace at Altamonte Loan ($19.1 million - 2.4%), which
is secured by a 336,000 square foot power center located in
Altamonte Springs, Florida.  The center was 100.0% occupied as of
September 2006, the same as at last review and at securitization.
Moody's LTV is 87.9%, compared to 89.6% at last review.

The second largest loan is the Broadmoor Towne Center Loan
($18.0 million - 2.2%), which is secured by a 173,000 square foot
community retail center located in Colorado Springs, Colorado.   
The center was 100.0% occupied as of December 2006, compared to
97.6% at securitization.  Moody's LTV is 79.8%, compared to 80.5%
at last review.

The third largest loan is the 215 East 23rd Street Loan ($17.0
million - 2.1%), which is secured by a 74-unit Class A multifamily
property located in the Gramercy Park area of New York City.  The
property is 100.0% leased by the School of Visual Arts for a 10-
year term and is used by the school as student housing.  Moody's
LTV is 60.5%, compared to 65.1% at last review.


WESTAR ENERGY: S&P Puts Preliminary Rating to Shelf Registration
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'BBB-
/BB+/BB' rating to Westar Energy Inc.'s omnibus Rule 415 shelf
registration, covering an indeterminate amount of first mortgage
bonds, senior and subordinated debt securities, and preferred and
preference stock.  The outlook is stable.
     
The ratings on Westar Energy reflect a satisfactory consolidated
business risk position of '5' and an intermediate financial
profile that is commensurate with investment-grade
characteristics.
     
Westar has taken meaningful actions to repair its balance sheet,
improve its overall financial condition, strengthen corporate
governance, and reduce business risk in recent years.
     
Ratings stability for Westar reflects a conservative business
strategy, key rate making mechanisms and trackers that provide for
partial recovery of company's aggressive capital expansion
program, prospects for modest base rate relief in the coming
years, ongoing favorable nuclear operations, efficient coal
operations, cost containment, and management's strong track record
in supporting credit quality.


WOODS AUTO: Case Summary & 12 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Woods Auto Gallery, Inc.
        124 East, Nifong Boulevard,
        Columbia, MO 65203-4926  

Bankruptcy Case No.: 07-41123

Type of Business: The Debtor sells affordable luxury mobiles.  

Chapter 11 Petition Date: April 10, 2007

Court: Western District of Missouri (Jefferson City)

Judge: Dennis R. Dow

Debtor's Counsel: Alan Jeffrey Misler, Esq.
                  McDowell Rice Smith & Buchanan
                  PC 605 West 47th Street, No.350
                  Kansas City, MO 64112-1905
                  Tel: (816) 753-5400
                  Fax: (816) 753-9996

Estimated Assets: $1 Million to $100 Million

Estimated Debts: $1 Million to $100 Millions

Debtor's 12 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Bank Star One                                           $675,000
P.O. Box 1030                                     secured value:
Lake Ozark, MO 65049                                  $1,200,000

Sports Car Exchange                                      $60,000
c/o Randy Mitchell
6420 Carter
Merriam, KS 66203

The Bank of Missouri                                     $39,371
P.O. Box 309
Perryville, MO 63775-0309


Mizzou Credit Union                                   $27,222.00
                                                  secured value:
                                                         $69,000

OnMedia                                                  $25,099

First Extended                                           $14,495

U.S. Bank                                                $12,096

U.S. Bank                                                $12,096

First National Bank                                      $12,000
                                                  secured value:
                                                         $47,000

University of Missouri-Columbia                          $10,500

Central Bank                                           $9,516.29

Kutak Rock, LLP                                           $8,944


* BOND PRICING: For the week of April 9 - April 13, 2007
--------------------------------------------------------

Issuer                               Coupon   Maturity  Price
------                               ------   --------  -----
Allegiance Tel                       11.750%  02/15/08    50
Allegiance Tel                       12.875%  05/15/08    50
Amer & Forgn Pwr                      5.000%  03/01/30    68
Antigenics                            5.250%  02/01/25    68
Anvil Knitwear                       10.875%  03/15/07    72
Atherogenics Inc                      1.500%  02/01/12    51
Autocam Corp.                        10.875%  06/15/14    70
Bank New England                      8.750%  04/01/99     8
Bank New England                      9.500%  02/15/96    13
Bank New England                      9.875%  09/15/99     8
Borden Inc                            7.875   02/15/23    75
Budget Group Inc                      9.125%  04/01/06     0
Burlington North                      3.200%  01/01/45    56
Calpine Corp                          4.000%  12/26/06    70
Chic East Ill RR                      5.000%  01/01/54    71
CHS Electronics                       9.875%  04/15/05     1
Collins & Aikman                     10.750%  12/31/11     3
Comcast Holdings                      2.000%  10/15/29    42
Dairy Mart Store                     10.250%  03/15/04     0
Dana Corp                             5.850%  01/15/15    74
Dana Corp                             9.000%  08/15/11    73
Decode Genetics                       3.500%  04/15/11    71
Delco Remy Intl                       9.375%  04/15/12    29
Delco Remy Intl                      11.000%  05/01/09    29
Delta Air Lines                       2.875%  02/18/24    54
Delta Air Lines                       7.700%  12/15/05    54
Delta Air Lines                       7.900%  12/15/09    57
Delta Air Lines                       8.000%  06/03/23    55
Delta Air Lines                       8.300%  12/15/29    57
Delta Air Lines                       9.000%  05/15/16    57
Delta Air Lines                       9.250%  03/15/22    53
Delta Air Lines                       9.250%  12/27/07    61
Delta Air Lines                       9.750%  05/15/21    56
Delta Air Lines                      10.000%  08/15/08    56
Delta Air Lines                      10.000%  12/05/14    58
Delta Air Lines                      10.125%  05/15/10    56
Delta Air Lines                      10.375%  02/01/11    56
Delta Air Lines                      10.375%  12/15/22    54
Delta Mills Inc                       9.625%  09/01/07    16
Deutsche Bank NY                      8.500%  11/15/16    73
Diamond Triumph                       9.250%  04/01/08    55
Diva Systems                         12.625%  03/01/08     0
Dura Operating                        8.625%  04/15/12    27
Dura Operating                        9.000%  05/01/09     4
Encysive Pharmacy                     2.500%  03/15/12    68
Exodus Comm Inc                       4.750%  07/15/08     0
Fedders North AM                      9.875%  03/01/14    54
Federal-Mogul Co.                     8.160%  03/06/03    75
Finova Group                          7.500%  11/15/09    28
Ford Motor Co                         6.625%  02/15/28    72
Ford Motor Co                         7.125%  11/15/25    74
Ford Motor Co                         7.400%  11/01/46    73
Ford Motor Co                         7.700%  05/15/97    74
Ford Motor Co                         7.750%  06/15/43    74
GB Property Fndg                     11.000%  09/29/05    57
Global Health Sc                     11.000%  05/01/08     8
Gulf States Stl                      13.500%  04/15/03     0
Home Prod Intl                        9.625%  05/15/08    26
Insight Health                        9.875%  11/01/11    30
Iridium LLC/CAP                      10.875%  07/15/05    21
Iridium LLC/CAP                      11.250%  07/15/05    19
Iridium LLC/CAP                      13.000%  07/15/05    21
Iridium LLC/CAP                      14.000%  07/15/05    21
Kaiser Aluminum                       9.875%  02/15/02    22
Kaiser Aluminum                      12.750%  02/01/03     3
Kellstrom Inds                        5.500%  06/15/03     4
Kellstrom Inds                        5.750%  10/15/02     0
Keystone Cons                         9.625   08/01/07    42
Kmart Corp                            8.990%  07/05/10    10
Kmart Corp                            9.350%  01/02/20    12
Kmart Corp                            9.780%  01/05/20    27
Liberty Media                         3.750%  02/15/30    63
Liberty Media                         4.000%  11/15/29    67
LTV Corp                              8.200%  09/15/07     0
New Orl Grt N RR                      5.000%  07/01/32    71
Northern Pacific RY                   3.000%  01/01/47    56
Northern Pacific RY                   3.000%  01/01/47    56
Northwest Airlines                    8.970%  01/02/15    25
Northwest Airlines                    9.179%  04/01/10    31
Northwst Stl&Wir                      9.500%  06/15/01     0
NTK Holdings Inc                     10.750%  03/01/14    73
Nutritional Src                      10.125%  08/01/09    63
Oakwood Homes                         7.875%  03/01/04    11
Oakwood Homes                         8.125%  03/01/09     1
Oscient Pharm                         3.500%  04/15/11    74
Outboard Marine                       9.125%  04/15/17     1
Pac-West Telecom                     13.500%  02/01/09    32
Pac-West Telecom                     13.500%  02/01/09    30
PCA LLC/PCA FIN                      11.875%  08/01/09     3
Pegasus Satellite                     9.625%  10/15/49     9
Pegasus Satellite                     9.750%  12/01/06     8
Phar-Mor Inc                         11.720   09/11/02     3
Piedmont Aviat                       10.250%  01/15/49     0
Pixelworks Inc                        1.750%  05/15/24    75
Polaroid Corp                         6.750%  01/15/02     0
Polaroid Corp                         7.250%  01/15/07     0
Polaroid Corp                        11.500%  02/15/06     0
Primus Telecom                        3.750%  09/15/10    52
Primus Telecom                        8.000%  01/15/14    66
PSINET Inc                           11.500%  11/01/08     0
Radnor Holdings                      11.000%  03/15/10     1
Railworks Corp                       11.500%  04/15/09     1
RJ Tower Corp.                       12.000%  06/01/13     7
Spacehab Inc                          5.500%  10/15/10    68
Tech Olympic                          7.500%  03/15/11    73
Tech Olympic                          7.500%  01/15/15    70
Tech Olympic                         10.375%  07/01/12    74
Tribune Co                            2.000%  05/15/29    67
Trism Inc                            12.000%  02/15/05     0
United Air Lines                      8.700%  10/07/08    42
United Air Lines                      9.200%  03/22/08    53
United Air Lines                      9.210%  01/21/17    11
United Air Lines                      9.350%  04/07/16    41
United Air Lines                     10.110%  02/19/49    53
United Air Lines                     10.850%  02/19/15    53
US Air Inc.                          10.250%  01/15/49     6
US Air Inc.                          10.680%  06/27/08     0
US Air Inc.                          10.900%  01/01/49     0
USAutos Trust                         2.212%  03/03/11     7
Vesta Insurance Group                 8.750%  07/15/25     4
Werner Holdings                      10.000%  11/15/07     7
Westpoint Steven                      7.875%  06/15/08     0
Wheeling-Pitt St                      5.000%  08/01/11    74
Wheeling-Pitt St                      6.000%  08/01/10    74

                             *********

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
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On Thursdays, the TCR delivers a list of recently filed chapter 11
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Monthly Operating Reports are summarized in every Saturday edition
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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,
Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez,
Nikki Frances S. Fonacier, Tara Marie A. Martin, and Peter A.
Chapman, Editors.

Copyright 2007.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
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                    *** End of Transmission ***