/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070418.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, April 18, 2007, Vol. 11, No. 91 Headlines ADINFINIT BUSINESS: Case Summary & 10 Largest Unsecured Creditors ALGOMA STEEL: DBRS Assigns Issuer Rating at BB (low) AMERIPATH INC: Quest Deal Prompts Moody's to Review Ratings AMTROL INC: Court Sets May 24 Confirmation Hearing on Joint Plan ARIZANT INC: Good Performance Prompts Moody's to Affirm Ratings BIOMERICA INC: Earns $121,370 in Third Quarter Ended February 28 BIOTA BRANDS: Case Summary & 17 Largest Unsecured Creditors BLUE MOUNTAIN: Case Summary & 20 Largest Unsecured Creditors C&A FLOORCOVERINGS: Moody's Rates Proposed $245 Million Loan at B2 CALPINE CORP: Can Contribute $60 million to Otay Mesa Project CALUMET HOMES: Case Summary & 20 Largest Unsecured Creditors CAPE SYSTEMS: Dec. 31 Balance Sheet Upside-Down by $25 Million CENTENNIAL COMMS: Feb. 28 Balance Sheet Upside-Down by $1.09 Bil. CLEAN POWER: DBRS Holds BB (high) on Issuer Rating CLEAR CHANNEL: Inks Advertising Pact with Google COPPERFIELD INVESTMENT: Case Summary & 17 Largest Unsec. Creditors COTT CORP: S&P Puts B+ Corporate Credit Rating on Developing Watch CREDIT SUISSE: Moody's Lowers Ratings Class M & N Certificates CUTTING EDGE: Case Summary & 20 Largest Unsecured Creditors CVS CORP: Gets Sued for Exposing Hundreds of Customer Records DILLARD INC: Debt Reduction Prompts Fitch's Ratings Upgrade DUANE READE: Planned Acquisition Prompts Moody's to Hold Ratings EDDIE BAUER: BDO Seidman Removes Going Concern Doubt Opinion EDUCATE SERVICES: Moody's Rates $185 Million Loans at (P)Ba2 EMBARCADERO AIRCRAFT: S&P Puts Two Notes Ratings' on CreditWatch FERTINITRO FINANCE: Moody's Holds B3 Rating on $250 Million Notes FIRST CONSUMERS: Moody's Withdraws B2 Rating on Class C Notes FOAMEX INT'L: John Johnson Returns as Chief Executive Officer GATEHOUSE MEDIA: Inks Bridge Credit Agreement with Wachovia GE COMMERCIAL: S&P Rates $15 Million Class Q Certificates at B- GENERAL MOTORS: Q1 Sales Up in Latin America, Africa & Middle East GENESIS TECH: Posts $675,282 Net Loss in Quarter Ended December 31 GOLF TRUST: Inks $1.2 Million Non-Revolving Loan with Patriot Bank GRANITE BROADCASTING: Files Modified Amended Chapter 11 Plan GRANITE BROADCASTING: Equity Holders Offer to Infuse $200 Million HALCYON LOAN: S&P $15.5 Million Rates Class D Notes at BB HANCOCK FABRICS: Hires Morris Nichols as Bankruptcy Counsel HANCOCK FABRICS: Court Approves Donlin Recano as Claims Agent HIGHGATE LTC: Case Summary & 21 Largest Unsecured Creditors IMPERIAL PETROLEUM: Completes New $15.4 Million Credit Facility INNOPHOS HOLDINGS: Moody's Rates New $66 Million Sr. Notes at B3 ISAAC BIRMINGHAM: Voluntary Chapter 11 Case Summary JACOBS FINANCIAL: Feb. 28 Balance Sheet Upside-Down by $7 Million JONG LEE: Case Summary & 13 Largest Unsecured Creditors LIFECARE HOLDINGS: Posts $40.8 Mil. Net Loss in Full Year 2006 MAJESTIC STAR: Dec. 31 Balance Sheet Upside-Down by 139.6 Million MATRITECH: Postpones Notes Principal & Interest Payments to May 13 MEDWAVE INC: Posts $1.2 Million Net Loss in Quarter Ended Dec. 31 ML-CFC COMMERCIAL: Moody's Puts Low-B Ratings on Six Certificates MODAVOX INC: Earns $216,699 in Third Quarter Ended November 30 MUZAK HOLDINGS: Plans to Merge with DMX MUZAK HOLDINGS: DMX Merger Cues S&P's Positive CreditWatch NETWORK SOLUTIONS: S&P Revises Recovery Rating on Upsized Loan NEW CENTURY: Taps O'Melveny & Myers as General Bankruptcy Counsel NEW CENTURY: Selects Richards Layton as Local Counsel NEWCOMM WIRELESS: Exclusive Plan-Filing Period Extended to Aug. 27 NEXTCARD CREDIT: Failure to Pay Balance Cues S&P's 'D' Ratings NORTH AMERICAN: DIP Financing Maturity Date Extended to January 8 NORTH AMERICAN: Court Extends Plan Solicitation Period to June 30 PACIFIC LUMBER: Section 341(a) Meeting Scheduled on May 2 PANTRY INC: Daniel Kelly Resigns as Finance VP and CFO PENINSULA GAMING: Dec. 31 Balance Sheet Upside-Down by $56.5 Mil. PLEASANT CARE: Wants Court Approval on Joseph Tutera as COO PORTOLA PACKAGING: Feb. 28 Balance Sheet Upside-Down by $91.4 Mil. POWER EFFICIENCY: Sobel & Co. Expresses Going Concern Doubt PTS INC: Lynda Keeton Expresses Going Concern Doubt PW LLC: Chapter 11 Trustee Gets Court Nod to Sell Assets PW LLC: Court Sets June 29 as General Claims Bar Date QUEST DIAGNOSTICS: AmeriPath Purchase Cues Moody's Ratings Review REMY INT'L: Interest Non-Payment Cues Moody's to Junk Ratings ROO GROUP: Moore Stephens Raises Going Concern Doubt SAMARITAN ALLIANCE: Case Summary & 43 Largest Unsecured Creditors SANDY ENGINEERING: Voluntary Chapter 11 Case Summary SASKATCHEWAN WHEAT: Revised Agricore Bid Cues S&P's Positive Watch SEA CONTAINERS: Services' Panel Hires Kroll as Financial Advisor SEA CONTAINERS: Services' Panel Hires Willkie Farr as Counsel SITESTAR CORP: Bagell Josephs Reports Going Concern Doubt SONICBLUE INC: Court Okays Dennis Connolly as Chapter 11 Trustee SPECTRUM BRANDS: 8-1/2% Senior Notes Exchange Offer Expires TELESOURCE INT'L: Dec. 31 Balance Sheet Upside-Down by $5.8 Mil. TEXAS WYOMING: Case Summary & 20 Largest Unsecured Creditors TOWNSEND CONSTRUCTION: Case Summary & 20 Largest Unsec. Creditors TREY FARMS: Voluntary Chapter 11 Case Summary TWIN PINES: Auction Sale of All Assets Scheduled on April 26 U.S. ENERGY: Nears Chap. 11 Exit as Court Okays Pact with ICC UTIX GROUP: Posts $1.8 Million Net Loss in Quarter Ended Dec. 31 VANTAGEMED CORP: Dec. 31 Balance Sheet Upside-Down by $3.5 Million VASOMEDICAL INC: Posts $510,256 Net Loss in Quarter Ended Feb. 28 VERIDIEN CORP: Malone & Bailey Expresses Going Concern Doubt VI-JON INC: Moody's Rates New $210 Million Senior Loan at B2 VIASYSTEMS INC: Earns $202.4 Million in Year Ended December 31 VOLT INFORMATION: Earns $727,000 in Quarter Ended January 28 * Antitrust Practitioner Charles Rule Joins Cadwalader Wickersham * Upcoming Meetings, Conferences and Seminars ********* ADINFINIT BUSINESS: Case Summary & 10 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Adinfinit Business Solutions, LLC aka P2C Interactive, LLC aka Ad Hoc The Legal aka Pathwinner.com aka Spratling & Company aka Pathwinner, Inc. aka ABS Management Consultants aka Adinfinitum 5262 South Staples, Suite 300 Corpus Christi, TX 78911 Bankruptcy Case No.: 07-20213 Chapter 11 Petition Date: April 16, 2007 Court: Southern District of Texas (Corpus Christi) Judge: Richard S. Schmidt Debtor's Counsel: Wayne Kitchens, Esq. Hughes Watters & Askanase Three Allen Center 333 Clay, 29th Floor Houston, TX 77002 Tel: (713) 759-0818 Fax: (713) 759-6834 Total Assets: $329,767 Total Debts: $2,778,350 Debtor's 10 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Internal Revenue Service $592,052 c/o Sandra Miklos 1919 Smith Houston, TX 77002 IPG Services Corp. $500,506 c/o Roger Fridholm 900 Wilshire Drive, Suite 900 Troy, MI 40804 Fuller West Loop LLC $283,585 c/o W. Stewart Smith 2425 West Loop South, Suite 300 Houston, TX 770027 Bank of Houston $275,000 750 Bering Drive, Suite 100 Houston, TX 77057 American Express Travel $269,884 Related Services Jaffe & Asher, LLP c/o Lawrence Nessenson 600 Third Avenue New York, NY 10016 Internal Revenue Service $239,457 Roger Fridholm, Trustee $237,230 Texas Workforce Commission $147,309 Wells Fargo Auto Finance, Inc. $135,231 Allen H. Crosswell $93,098 ALGOMA STEEL: DBRS Assigns Issuer Rating at BB (low) ---------------------------------------------------- Dominion Bond Rating Service has placed the BB (low) rating of Algoma Steel Inc.'s Issuer Rating. Under Review with Developing Implications after the announcement that Essar Steel Holdings Limited and Algoma have signed a definitive agreement providing for the acquisition of all outstanding shares of the Company for $56 per share ($1.85 billion). Algoma currently does not have public debt outstanding, and expects the acquisition to close in June 2007. In the event that the acquisition is completed and Algoma does not plan to issue new debt, DBRS would likely discontinue the rating. Algoma has been widely speculated to be a takeover candidate, and DBRS does not view the announcement as entirely unexpected. The bid is modestly above the company's April 13 closing price, but a substantial premium to its 20-day average trading price prior to the disclosure by Algoma in February 2007 that it had been engaged in merger discussions. Algoma's board of directors has unanimously approved the takeover bid, which is subject to shareholder and regulatory approvals. The company would be required to pay Essar, which is wholly owned by Essar Global Limited, a break fee of approximately $56 million in the event that the acquisition is not completed. Essar Global Limited is an international conglomerate operating in six business areas -- steel, oil and gas, power, communications, shipping and logistics, and construction -- and employs approximately 20,000 people. Essar Steel Holdings Limited operates an integrated steel plant in India with an annual capacity of 4.6 million tonnes, which includes a cold rolling plant, plate mill and downstream processing capabilities. AMERIPATH INC: Quest Deal Prompts Moody's to Review Ratings ----------------------------------------------------------- Moody's Investors Service placed the ratings of Quest Diagnostics Incorporated under review for possible downgrade (Baa2 senior unsecured debt rating). This rating action follows the recent announcement that Quest has signed a definitive agreement to acquire AmeriPath in an all cash transaction valued at approximately $2 billion, including the assumption of approximately $770 million in AmeriPath debt (B2 Corporate Family Rating). Concurrently, Moody's placed the ratings of AmeriPath under review for possible upgrade. Moody's expects the deal to close by the end of the second quarter of 2007 and is subject to shareholder and regulatory approval. Moody's estimates that Quest is paying over two times projected 2008 annual revenue and over 10 times projected 2008 annual EBITDA, including synergies, for AmeriPath. Moody's assumes that Quest will issue a new $1 billion bridge loan in addition to a new five-year $1.5 billion term loan. The proceeds will be used to finance the cash payment being made to AmeriPath's shareholders and to refinance the debt incurred with Quest's acquisition of HemoCue, completed in February 2007. Moody's understands that Quest will also refinance AmeriPath's outstanding debt with the transaction expected to close in the second quarter of 2007. Moody's believes that Quest's ratings could be downgraded, if at all, by as much as two notches. The major factor in determining the outcome of the rating review will be an assessment of Quest's ability and willingness to repay debt and reduce leverage in the next two years. Moody's will also assess: (1) the degree and extent that the company curtails the use of its free cash flow to purchase its shares; (2) the structure and terms of both existing and proposed debt, including potential guarantees and security features to assess whether there will be any notching difference between the different tranches of debt; and (3) the effect of greater pricing pressure and contract turnover with several key managed care contracts, including the United Health contract, which had accounted for about 7% of Quest's 2006 revenues. Despite the high valuation and increase in leverage, Moody's anticipates that the acquisition will provide several benefits. First, the combined company will establish a leading position in cancer diagnostics with a focus on dermapathology, anatomic pathology and molecular diagnostics, three of the fastest growing areas in diagnostics testing. Second, Ameripath's Specialty Laboratories segment will strengthen the hospital and esoteric testing business of Quest. Third, the acquisition will accelerate Quest's revenue and earnings growth, beginning in 2008. Lastly, Moody's anticipates that Quest will seek to improve the profitability and internal growth rate of AmeriPath through cost synergies, leveraging Quest's sales resources, distribution and infrastructure and the benefits of an expanded testing portfolio. Ratings placed on review for possible downgrade: Quest Diagnostics Incorporated: * Senior Unsecured Notes, rated Baa2 * Senior Credit Facility, rated Baa2 * Senior Unsecured Shelf rating, (P) Baa2 * Subordinate Shelf rating, (P) Baa3 * Preferred Shelf rating, (P) Bal Ratings placed on review for possible upgrade: Ameripath, Inc:. * Senior Secured Revolving Credit Facility, rated Ba2, LGD2, 13% * Senior Secured Term Loan B, rated Ba2, LGD2, 13% * Corporate Family Rating, B2 * Probability of Default Rating, B2 * Senior Subordinated Notes, rated B3, LGD4, 62% AmeriPath Intermediate Holdings, Inc.: * Floating Rate PIK Toggle Notes, rated Caa1, LGD5, 88% Since the exact terms and structure of the planned debt financing have not yet been finalized, Moody's notes that the individual debt ratings will be determined at the conclusion of this review and will depend on securities and guarantees in determining how each tranche of debt will be rated. If AmeriPath's debt is paid at or about the time of the closing of the acquisition, Moody's anticipates confirming its ratings and withdrawing them. Quest Diagnostics Incorporated, headquartered in Teterboro, New Jersey, is the largest clinical laboratory testing business in the United States, providing a broad range of routine and esoteric services to the medical profession. Revenues were just under $6.3 billion in 2006. AmeriPath is a leading national provider of physician based anatomic pathology, dermapathology and molecular diagnostics services to physicians, hospitals, national clinical laboratories and surgery centers. For 2006, AmeriPath reported revenues of $752 million. AMTROL INC: Court Sets May 24 Confirmation Hearing on Joint Plan ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved the disclosure statement describing the plan of reorganization co-proposed by AMTROL Inc. and the Official Committee of Unsecured Creditors, Bankruptcy Data said on its Web site Tuesday. The Court is scheduled to consider confirmation of the Joint Plan on May 24, 2007, the source said. As reported in the Troubled Company Reporter on Mar. 8, 2007, AMTROL anticipates that the requisite number and amount of its Senior Subordinated Notes will vote in favor of the Plan and, pursuant to the Plan, the Notes will be exchanged for substantially all of the equity in the reorganized company, thereby reducing the company's debt by approximately 40% and greatly improving its long-term financial stability. The Plan provides for all pre-filing trade liabilities to be paid in full. The company's domestic operations are being financed under Chapter 11 with a $115 million debtor-in-possession facility provided by Barclays Capital, the investment banking division of Barclays Bank PLC. The company has received a number of commitments to repay the DIP facility with long-term, low-cost financing as it completes the reorganization. The company anticipates that the reorganization will result in a reduction in total annual interest cost of more than 50%. AMTROL has continued to operate in the normal course of business and has experienced no disruptions during the Chapter 11 reorganization process. All of the company's manufacturing and distribution facilities remain open and are continuing to serve customers. The company also continues to honor all commitments to its customers, including warranties and the payment of sales rebates, pay all wages and benefits to employees and independent sales representatives and pay suppliers for goods and services provided under Chapter 11, all in the normal course. The company's foreign operations are not involved in the reorganization. The company expects to complete the reorganization and emerge from Chapter 11 in the second quarter of this year. Headquartered in West Warwick, Rhode Island, Amtrol Inc. -- http://www.amtrol.com/-- manufactures and markets water storage and pressure control products, water heaters and cylinders. The company's major products include pressure tanks used in well water, hydronic heating and potable hot water applications, indirect-fired water heaters, and both LPG and disposable refrigerant gas cylinders. The company and three of its affiliates filed for chapter 11 protection on Dec. 18, 2006 (Bankr. D. Del. Lead Case No. 06-11446). Douglas Gray, Esq., Stuart J. Brown, Esq., and William E. Chipman Jr., Esq., at Edwards Angell Palmer & Dodge LLP, represent the Debtors. The Debtor's financial advisor is Miller Buckfire & Co., LLC. Kara Hammond Coyle, Esq., and Pauline K. Morgan, Esq., at Young Conaway Stargatt & Taylor LLP, represent the Official Committee of Unsecured Creditors. As of Apr. 1, 2006, the Debtors' consolidated financial condition showed $229,270,000 in total assets and $235,802,000 in total debts. Amtrol and its debtor affiliates recently obtained Court permission to employ Huron Consulting Services LLC to provide fresh start reporting and valuation services. ARIZANT INC: Good Performance Prompts Moody's to Affirm Ratings --------------------------------------------------------------- Moody's affirmed the ratings and stable outlook of Arizant Inc. reflecting the company's continued positive performance and organic revenue growth following the 2004 acquisition of the company by Citigroup Venture Capital Equity Partners LP. These ratings have been affirmed. * Corporate Family Rating, B2 * Senior secured revolving credit facility due 2009, B2, LGD3, 35% * Senior secured term loan due 2010, B2, LGD3, 35% * Probability of Default Rating, B3 The ratings are constrained by the small scale and limited diversity of the company, which Moody's views as the most significant credit risk to the company. The ratings are also constrained by the relatively large amount of debt and associated interest expense, which results in relatively weak adjusted debt to revenue and weak EBIT coverage of interest metrics. The ratings are supported by the company's strong profitability margins, stable operating cash flows, modest working capital needs and low capital expenditure requirements, all of which lead to relatively strong cash flow coverage of debt metrics. Further, the ratings are supported by the company's strong competitive positions within its niche markets. Arizant Inc., headquartered in Eden Prairie, Minnesota, is the parent of Arizant Healthcare Inc., an industry-leading maker of surgical patient temperature management systems. The company designs, manufactures and markets medical devices that provide solutions to common medical problems, such as perioperative hypothermia, the abnormally low body temperature associated with surgery. Moody's estimates that the company generated revenues of approximately $120 million for the twelve months ended December 31, 2006. BIOMERICA INC: Earns $121,370 in Third Quarter Ended February 28 ---------------------------------------------------------------- Biomerica Inc. reported net income of $121,370 for the third quarter ended Feb. 28, 2007, compared with net income of $29,615 for the third quarter ended Feb. 28, 2006. For the three months ended Feb. 28, 2007, sales increased $313,539, or 31.4%, to $1,311,609, from sales of $998,070 for the three months ended Feb. 28, 2006, due to higher sales to foreign distributors, as well as increased sales of certain product lines. Cost of goods sold as a percentage of sales decreased from 65.1% to 63.8%. This decrease was primarily due to the higher sales volume relative to some fixed costs. Selling, general and administrative expenses increased by $35,513 for the quarter ended Feb. 28, 2007. The increase was attributable to increased wages and advertising. For the three months ended Feb. 28, 2007 research and development expenses increased by $32,467 primarily due to materials and personnel required for new research projects. Other income increased by $39,275, which was due to the one time sale of equipment which had been purchased in fiscal 2007. At Feb. 28, 2007, the company's balance sheet showed $2,806,736 in total assets, $1,452,023 in total liabilities, and $1,354,713 in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d48 Going Concern Doubt PKF in San Diego, California, expressed substantial doubt about Biomerica Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended May 31, 2006. The auditing firm pointed to the company's net losses and negative cash flows from operations. * * * Biomerica Inc. (OTCBB: BMRA) -- http://www.biomerica.com/-- is a global medical technology company, based in Newport Beach, Calif. The company's diagnostics division manufactures and markets advanced diagnostic products used at home, in hospitals, and in physicians' offices for the early detection of medical conditions and diseases. BIOTA BRANDS: Case Summary & 17 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: BIOTA Brands of America, Inc. P.O. Box 2812 Telluride, CO 81435 Bankruptcy Case No.: 07-13730 Type of Business: The Debtor provides biodegradable plastic- bottled water. See http://biotaspringwater.com/ Chapter 11 Petition Date: April 17, 2007 Court: District of Colorado (Denver) Judge: Sidney B. Brooks Debtor's Counsel: Duncan E. Barber, Esq. 4582 South Ulster Street Parkway, Suite 1650 Denver, CO 80237 Tel: (720) 488-0220 Fax: (720) 488-7711 Total Assets: $5,356,153 Total Debts: $10,587,429 Debtor's Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Container Handling trade debt $427,834 Systems, Inc. Attention: Jeff Van Hoose 1610 12th Street East Palmetto, FL 34221 c/o American Container Handling Systems, Inc. Attention: Jeff Van Hoose 1610 12th Street East Palmetto, FL 34221 Frank Marshall promissory note $250,000 c/o Jerry Kosberg, Esq. Kindel & Kosberg 16055 Ventura Boulevard, Suite 535 Encino, CA 91436-2601 c/o Frank Marshall c/o Jerry Kosberg, Esq. Kindel & Kosberg 16055 Ventura Boulevard, Suite 535 Encino, CA 91436-2601 Tueller & Associates, P.C. services $137,522 Attention: Doug Tueller P.O. Box 3153 Telluride, CO 81435-3153 c/o Tueller & Associates, P.C. Attention: Doug Tueller P.O. Box 3153 Telluride, CO 81435-3153 Ouray County Clerk & $131,600 Recorder Bernie Roland loan $75,000 Vitro Packaging trade debt $72,203 Spear, Inc. trade debt $63,028 Arnie Peltz loan $50,000 C.H. Robinson Co., Inc. trade debt $48,715 Colorado Department of tax $37,998 Revenue Advanced Manufacturing trade debt $35,378 Technology Ouray County Treasurer $32,717 Packaging Credit Company promissory note $30,500 Co., L.L.C. City of Ouray utilities $26,310 Packaging Corporation of trade debt $21,208 America Organicworks Marketing, L.L.C. accounting services $18,736 Dalby, Wendland & Co., P.C. accounting $17,301 services All-Stick Label, Ltd. trade debt $15,385 Whiteman& Associates, services $15,379 P.L.L.C. Command Transportation, L.L.C. trade debt $14,065 BLUE MOUNTAIN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Blue Mountain Mushroom Company, Inc. 670 Clauss Road Lenhartsville, PA 19534 Bankruptcy Case No.: 07-20627 Type of Business: The Debtor filed for Chapter 11 protection on April 26, 2000 (Bankr. E.D. Pa. Case No. 00-21612). Chapter 11 Petition Date: April 16, 2007 Court: Eastern District of Pennsylvania (Reading) Debtor's Counsel: Dexter K. Case, Esq. Case, DiGiamberardino & Lutz, P.C. 845 North Park Road, Suite 101 Wyomissing, PA 19610 Tel: (610) 372-9900 Fax: (610) 372-5469 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Met Ed/First Energy Trade Debt $374,572 Remittance Processing P.O. Box 3687 Akron, OH 44309-3687 Pennsylvania Department of Tax $212,702 Revenue - Bureau of Compliance Department 280948 Harrisburg, PA 17128-0946 Vernon Thompson Trade Debt $147,748 P.O. Box 79 DePauville, NY 13632 Berks County Tax Claim Bureau 2007 Tax $55,580 Bernville Quality Fuels, Inc. Trade Debt $53,689 Sylvan America Inc. Trade Debt $44,041 Jack Welnhoffer Trade Debt $22,200 Pipeline Petroleum Trade Debt $21,651 Monterey Mushrooms Inc. Trade Debt $17,069 Nationwide Insurance Trade Debt $16,734 Paul Choquette Trade Debt $15,151 Con Agra Inc. Trade Debt $15,142 Cardile Brothers Mushroom Trade Debt $14,943 Specialty Packaging Trade Debt $14,710 Transport G Gournoyer Trade Debt $14,698 Mi-llon Sales Associates Trade Debt $13,329 AIMCO Trade Debt $12,957 Mushroom Central Trade Debt $12,495 Beckie Reinhart Taxes $12,143 Bingaman Hess Legal Services $11,810 C&A FLOORCOVERINGS: Moody's Rates Proposed $245 Million Loan at B2 ------------------------------------------------------------------ Moody's Investors Service changed the outlook of Collins & Aikman Floorcoverings, Inc. to stable from negative and assigned B2 to the company's proposed $245 million senior secured term loan B due 2014. Concurrently, Moody's affirmed the company's B2 Corporate Family Rating. The proceeds will be used to refinance the company's existing $165 million of 9-3/4% senior subordinated notes due 2010, repay a portion of the company's asset-based revolver, finance a dividend to shareholders, and pay fees and expenses associated with the transaction. The change in the outlook to stable from negative was driven by the company's recovery from a substantial decline in profitability in 2005 following operational problems in consolidating broadloom manufacturing in Canada. The ratings are constrained by high leverage, with adjusted debt to 2006 EBITDA of about 5.2 times, the company's size relative to competitors, a competitive environment in the specified institutional carpet market and cyclicality of the market for floorcoverings overall. The company is highly seasonal with the bulk of activity taking place in the second and third quarters. The ratings benefit from Moody's expectation of solid interest coverage and free cash flow generation for the rating category. The ratings are further supported by diversification across attractive segments of the specified commercial carpet segment, low customer concentration and the company's recent record in passing on raw material price increases to customers. The stable ratings outlook reflects Moody's expectations of good liquidity, indications that the industry as a whole has been able to pass on fluctuations in the price of raw materials and continuing strength across principal market segments. Sustainable leverage with adjusted debt to EBITDA below 4.5 times, combined with sustainable adjusted free cash flow to debt in excess of 5% of debt could lead to an upgrade. Substantial volume declines (e.g., as a result of a slowdown in construction activity or a slowdown in economic activity) which lead to weak or negative free cash flows, debt-financed acquisitions or additional indebtedness, could put negative pressure on the ratings. Moody's took these rating actions: * Assigned a B2 (LGD 4, 56%) to the proposed $245 million senior secured term loan B due 2012; * Affirmed the B3 (LG4, 69%) rating on $175 million issue of 9.75% guaranteed senior subordinated notes due 2010, subject to withdrawal upon completion of the proposed refinancing; * Withdrew the Ba2 (LGD2, 14%) rating on the remaining $31 million of the prior term loan, which was repaid in January 2007; * Affirmed the B2 Probability of Default Rating; * Affirmed the B2 Corporate Family Rating. The outlook for the ratings was changed to stable from negative. Collins & Aikman Floorcoverings, Inc., based in Dalton, Georgia, is a leading manufacturer of vinyl-backed floorcovering products, including six-foot roll carpet, modular carpet tile and high-style broadloom carpets. The company designs, manufactures and markets under the C&A Floorcoverings, Monterey and Crossley brands to a wide variety of commercial end users, including corporate offices, education, healthcare facilities, government facilities and retail stores. About 35% of the company is owned by Oaktree Capital Management, LLC, through the OCM Principal Opportunities Fund II, L.P. and about 28% is owned by BancAmerica Capital Investors II, L.P. The company is privately held by Tandus Group Inc. and had revenues of $354 million in fiscal 2006. CALPINE CORP: Can Contribute $60 million to Otay Mesa Project ------------------------------------------------------------- The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York authorizes Calpine Corporation to contribute $60,000,000 to the Otay Mesa Project. The Court also authorizes the Debtors to transfer additional equipment and two contracts to non-debtor Otay Mesa Energy Center, LLP: Counterparty Contract Cure Amount ------------ -------- ----------- Nooter/Eriksen, Inc. Purchase Contract for $66,674 Heat Recovery Steam Generators & Accessories ABB, Inc. Purchase Contract for 0 Combustion Turbine Generator Step-Up Transformers & Accessories The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. The Debtors' exclusive period to file chapter 11 plan of reorganization expires on June 20, 2007. (Calpine Bankruptcy News, Issue No. 46; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). Calpine Corp. has until June 20, 2007, to file a plan, and until Aug. 20, 2007, to solicit acceptances of that plan. CALUMET HOMES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Calumet Homes, L.L.C. P.O. Box 725 Union, KY 41091 Bankruptcy Case No.: 07-20539 Type of Business: The Debtor is a home builder that offers a full line of customizable plans, as well as performs full custom construction to a client's plans and specifications. See http://www.calumethomes.com/ Chapter 11 Petition Date: April 16, 2007 Court: Eastern District of Kentucky (Covington) Judge: William S. Howard Debtor's Counsel: Stuart P. Brown, Esq. O'Hara Ruberg Taylor Sloan & Sergent 25 Crestview Hills Mall Road, Suite 201 P.O. Box 17411 Crestview Hills, KY 41017 Tel: (859) 331-2000 Fax: (859) 578-3365 Total Assets: $5,880,706 Total Debts: $5,630,735 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Doug Robertson Plumbing, Inc. builder supplier/ $82,440 P.O. Box 413 servicer Crittenden, KY 41030 Norandex builder supplier $75,664 1390 Donaldson Highway, Suite A Erlanger, KY 41018 Star Building Materials, Inc. builder supplier $67,624 8319 Dixie Highway Florence, KY 41042 Les Jacobs builder servicer $65,000 Nu-Way Dry Wall (TC 191) Troopers $56,100 Crossing: 10414 Sharpsburg Drive, Independence, KY 41051 (3 bedroom, 2.5 bathroom completed); value of security: $153,900; value of senior lien: $122,518 Moore's Home Improvement builder supplier $55,405 Center Builders First Source builder supplier $54,805 84 Lumber Company building supplier $54,222 Haggard Concrete builder servicer $47,099 Rite Rug Flooring Dist. builder supplier $41,802 American Express credit card debt $36,615 Dave Rabe Contractors builder supplier $34,833 Overhead Door builder supplier $30,351 Jon Thompson builder supplier $22,685 Custom Distributors builder supplier/ $21,384 servicer Hagan's Painting, Inc. builder servicer $17,998 Robert Dahlenburg Plumbing builder supplier/ $16,315 servicer Alliance, Inc. building supplier $15,280 Moellering Industries builder supplier/ $12,936 servicer Bray Trucking, Inc. builder service $11,437 CAPE SYSTEMS: Dec. 31 Balance Sheet Upside-Down by $25 Million -------------------------------------------------------------- Cape Systems Group Inc. reported a net loss of $1,007,000 for the first quarter ended Dec. 31, 2006, compared with a net loss of $374,000 for the same period a year ago. Operating revenues decreased $56,000, or 6.2%, from $901,000 to $845,000 for the quarters ended Dec. 31, 2006, and 2005, respectively, mainly due to a decline in "packaged software" revenues as certain "customized" packaging and pallet optimization projects undertaken for major corporate clients in the fiscal 2006 quarter were not repeated in the fiscal 2007 quarter. Non-cash beneficial conversion costs increased $570,000 to $770,000 during the first quarter ended Dec. 31, 2006, from $200,000 during the first quarter ended Dec. 31, 2005, as a result of the company issuing an additional $770,000 in convertible secured notes during the period. Gain on settlements decreased by $197,000 to $103,000 due to a reduced ability to settle certain debts and obligations for less than their book value. The company realized a tax credit of $511,000, versus a tax credit of $401,000 in the prior period quarter, by selling New Jersey State net operating loss carryforwards during the three months ended Dec. 31, 2006. At Dec. 31, 2006, the company's balance sheet showed $2,348,000 in total assets and $27,354,000 in total liabilities, resulting in a $25,006,000 total stockholders' deficit. The company's balance sheet at Dec. 31, 2006, also showed strained liquidity with $1,271,00 in total current assets available to pay $27,354,000 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1d4a Headquartered in South Plainfield, N.J., Cape Systems Group Inc. (OTC BB: CYSG.OB) -- http://www.capesystems.com/ -- is a provider of supply chain management technologies, including enterprise software systems and applications, software integration solutions, and packaged software. CENTENNIAL COMMS: Feb. 28 Balance Sheet Upside-Down by $1.09 Bil. ----------------------------------------------------------------- Centennial Communications Corp. reported a net loss of $1.3 million on revenue of $229.1 million for the third quarter ended Feb. 28, 2007. This compares with a net loss of $6.1 million on revenue of $212.7 million for the same period ended Feb. 28, 2006. U.S. Wireless Operations revenue was $126.5 million, a 15% increase from last year's third quarter. Retail revenue increased 22 percent from the year-ago period primarily driven by an 8% increase in total retail subscribers, and supported by strong equipment, feature, data and access revenue. Roaming revenue decreased 21% from the year-ago quarter as a result of a 16 percent decline in total roaming traffic. Puerto Rico Wireless Operations revenue and Broadband revenue was $102.6 million compared to $102.8 million from last year's third quarter. The company ended the quarter with 1,085,500 total wireless subscribers, which compares to 1,018,000 for the year-ago quarter and 1,058,700 for the previous quarter ended Nov. 30, 2006. The company reported 397,800 total access lines and equivalents at the end of the fiscal third quarter, which compares to 327,100 for the year-ago quarter. The company reported income from continuing operations of $321,000 for the fiscal third quarter of 2007 as compared to a loss from continuing operations of $2.7 million in the fiscal third quarter of 2006. The fiscal third quarter of 2007 included $1.9 million of stock-based compensation expense due to the company's adoption of SFAS 123R. Consolidated operating income for the fiscal third quarter was $50.4 million, as compared to $33.8 million for the prior-year quarter. Consolidated operating income for the fiscal third quarter included a $5.4 million charge for an adjustment to Universal Service Fund revenue in Puerto Rico related to calendar year 2004. "Our U.S. wireless business continues to grow retail revenue and cash flow at an impressive pace, once again illustrating that our local market strategy wins with a quality footprint, strong retail distribution presence and clear brand message," said Michael J. Small, Centennial's chief executive officer. "Momentum in our U.S. wireless business is very strong." Small continued, "In Puerto Rico, we revitalized our wireless business with a successful unlimited offering and now see evidence of renewed customer growth, improving customer retention and stable average revenue per user. With these key operating metrics moving in the right direction, our focus will turn to steady cash flow growth." On Feb. 5, 2007, the company amended its senior secured credit facility, lowering the interest rate on term loan borrowings by 25 basis points through a reduction in the LIBOR spread from 2.25 percent to 2.00 percent. As of Feb. 28, 2007, Centennial had $550 million of term loan borrowings under its senior secured credit facility. At Feb. 28, 2007, the company's balance sheet showed $1,393 million in total assets, $2,482.8 million in total liabilities, and $3.9 million in minority interest in subsidiaries, resulting in a $1,093.7 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d2b About Centennial Communications Headquartered in Wall, N.J., Centennial Communications Corp. (NASDAQ: CYCL) -- http://www.centennialwireless.com/-- provides regional wireless and integrated communications services in the United States and Puerto Rico with approximately 1.1 million wireless subscribers and 397,800 access lines and equivalents. The U.S. business owns and operates wireless networks in the Midwest and Southeast covering parts of six states. Centennial's Puerto Rico business owns and operates wireless networks in Puerto Rico and the U.S. Virgin Islands and provides facilities-based integrated voice, data and Internet solutions. Welsh, Carson, Anderson & Stowe and an affiliate of the Blackstone Group are controlling shareholders of Centennial. CLEAN POWER: DBRS Holds BB (high) on Issuer Rating -------------------------------------------------- Dominion Bond Rating Service is maintaining both the Issuer Rating at BB (high) and Income Fund rating of Clean Power Income Fund STA-3 (low), under Review with Developing Implications, after its announcement that Macquarie Power & Infrastructure Income Fund has submitted to the Board of Trustees of Clean Power Operating Trust a proposal to acquire all of the outstanding units of Clean Power. MPI's bid for the units of Clean Power competes with an earlier offer by Algonquin Power Income Fund announced on Feb. 26, 2007, to acquire all of the outstanding units of Clean Power. MPI's offer represents consideration of up to $6.39 per unit, comprised of: 1) 0.5581 trust units of MPI for each unit of Clean Power; and 2) a contingency value receipt, which, under certain conditions, would entitle the holder to a cash payment of up to approximately $0.19 per Clean Power unit. Algonquin does have the right, until April 18, 2007, to match any competing offers. In the event Algonquin does not exercise this right, it is entitled to a fee of $1.75 million and reimbursement of expenses to a maximum of $850,000. MPI's offer is conditional upon, among other things, Clean Power accepting MPI's support agreement on or before April 19, 2007, following a termination of Clean Power's support agreement with Algonquin. Clean Power will, under certain circumstances, pay MPI a break fee of $7 million and reimburse MPI's expenses to a maximum of $1.5 million. Unlike the Algonquin offer, the contingency value receipt under the MPI offer does not include any amount in respect of Erie Shores Wind Farm qualifying for the Wind Power Production Incentive. Also, MPI has indicated that it is not currently contemplating making an offer for Clean Power's outstanding 6.75% convertible debentures. However MPI is contemplating a transaction under which the convertible debentures would become obligations of MPI. DBRS is maintaining Clean Power's ratings at Under Review with Developing Implications, pending the resolution of the two competing bids with the expectation that if either acquisition proceeds, the Issuer Rating and Income Fund rating would both be discontinued. In the event neither transactions close, the Under Review with Developing Implications status would be re-assessed at that time, with the outcome dependent upon Clean Power's views on their strategic review, as well as the ultimate impact of the anticipated federal tax-related legislation regarding income trusts. CLEAR CHANNEL: Inks Advertising Pact with Google ------------------------------------------------ Clear Channel Communications Inc.'s affiliate, Clear Channel Radio, and Google Inc., have agreed to sell a guaranteed portion of 30-second advertising inventory available up to 675 of Clear Channel's AM/FM stations. Specific financial terms are not being disclosed. "This is a true win-win," said John Hogan, Chief Executive Officer of Clear Channel Radio. "Clear Channel Radio gets access to an entirely new group of advertisers within a new and complementary sales channel, and Google adds another option for its existing customers. Google has proven its ability to gain premiums for advertising inventory and that fits perfectly into our broader strategy of building value for advertisers while increasing our overall revenue yield. We're committed to working with the best- in-class and Google has a real economic incentive to produce meaningfully higher CPMs." Under the agreement, Google Audio Ads advertisers will enable to reach specific audiences, at specific times, in targeted geographies. For Clear Channel, the agreement opens up an more sales channel and provides supplemental revenue by making its inventory available to other advertisers. "Clear Channel is the market leader in delivering radio value to consumers and advertisers and has built an innovative platform to manage its on-air ad inventory," said Eric Schmidt, Chief Executive Officer of Google. "We look forward to working with Clear Channel Radio by providing a unique set of advertisers and a system that will increase the effectiveness and measurability of connecting advertisers with radio listeners." This agreement complements an existing online advertising partnership in which Google provides text ads to Clear Channel's radio-station Web sites through the company's Online Music & Radio Unit. About Clear Channel Radio Clear Channel Radio -- http://www.clearchannel.com/-- is a radio company. It is a division of Clear Channel Communications Inc. About Clear Channel Communications Based in San Antonio, Texas, Clear Channel Communications Inc. -- http://www.clearchannel.com/-- (NYSE:CCU) is a global leader in the out-of-home advertising industry with radio and television stations and outdoor displays in various countries around the world. Aside from the U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * Clear Channel's long-term local and foreign issuer credits carry Standard & Poor's BB+ rating. In addition, the company's senior unsecured debt and long-term issuer default ratings were placed by Fitch at BB- on Nov. 16, 2006. COPPERFIELD INVESTMENT: Case Summary & 17 Largest Unsec. Creditors ------------------------------------------------------------------ Debtor: Copperfield Investment, L.L.C. 2 Jericho Plaza Jericho, NY 11753 Bankruptcy Case No.: 07-71327 Chapter 11 Petition Date: April 17, 2007 Court: Eastern District of New York (Central Islip) Debtor's Counsel: Roy J. Lester, Esq. Lester & Associates, P.C. 600 Old Country Road, Suite 229 Garden City, NY 11530 Tel: (516) 357-9191 Fax: (516) 357-9281 Total Assets: $140,047,500 Total Debts: $95,000,000 Debtor's 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ FICUS Investments, Inc. cash advances unknown CAY House Lyford Cay, Bahamas c/o FICUS Investments, Inc. CAY House Lyford Cay, Bahamas FICUS U.S.A. cash advances unknown Travistock House 9350 Conroy Windermere Road Windermere, FL 34786 c/o FICUS U.S.A. Travistock House 9350 Conroy Windermere Road Windermere, FL 34786 I.R.S. Insolvency Section possible taxes unknown P.O. Box 21126 Philadelphia, PA 19144 c/o I.R.S. Insolvency Section P.O. Box 21126 Philadelphia, PA 19144 Lawrence A. Cline personal loan unknown 2 Jericho Plaza Jericho, NY 11753 c/o Lawrence A. Cline 2 Jericho Plaza Jericho, NY 11753 N.Y.S. Dept. of Tax & Finance possible taxes unknown P.O. Box 5149 Albany, NY 12205 c/o N.Y.S. Dept. of Tax & Finance P.O. Box 5149 Albany, NY 12205 Private Capital Group-FL cash advances unknown Travistock House 9350 Conroy Windermere Road Windermere, FL 34786 c/o Private Capital Group-FL Travistock House 9350 Conroy Windermere Road Windermere, FL 34786 Thomas Donovan personal loan unknown 2 Jericho Plaza Jericho, NY 11753 c/o Thomas Donovan 2 Jericho Plaza Jericho, NY 11753 Pilot Financial trade debt $400,000 900 Route 111, Suite 265 Hauppauge, NY 11788 c/o Pilot Financial 900 Route 111, Suite 265 Hauppauge, NY 11788 Kurt Butenhoff cash advances $300,000 c/o Bear Stearns 383 Madison Avenue New York, NY 10179 c/o Kurt Butenhoff c/o Bear Stearns 383 Madison Avenue New York, NY 10179 Equity Settlement title fees $275,000 444 Route 111 Smithtown, NY 11787 c/o Equity Settlement 444 Route 111 Smithtown, NY 11787 G.D. Van Wagenen, Inc. forced placed $225,000 insurance Chalavoutis & Co. accounting fees $135,000 Banque Portfolio Corp. trade debt $119,000 Realty Advisory Group trade debt $90,000 First REO Corp. property $75,000 inspections AMEX credit card $43,500 Broker Price Opinion.com inspections $19,500 COTT CORP: S&P Puts B+ Corporate Credit Rating on Developing Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'B+' long-term corporate credit and 'B-' subordinated debt ratings on Toronto- based Cott Corp. on CreditWatch with developing implications. Developing implications mean that the ratings could be raised, lowered, or affirmed, depending on the outcome of Standard & Poor's review. "The CreditWatch listing follows beverage provider Cott's decision to explore its possible participation in industry consolidation," said Standard & Poor's credit analyst Lori Harris. Although a potential suitor for Cott has not been named, the company's announcement followed the recent statement by Cadbury Schweppes PLC (BBB/Watch Dev/A-2) regarding the separation of its confectionary and Americas Beverages businesses to maximize shareholder value. Even though the combination of the two companies' beverage businesses has been speculated on by outside parties, there has been no statement on either company's part that it is in exclusive discussions regarding a possible transaction. Cott's board of directors is in support of these exploratory discussions and has authorized management to consult with outside legal and financial advisors in this regard. Should a transaction or strategic plan be announced with Cadbury Schweppes or any other interested party, Standard & Poor's will evaluate its impact on Cott's credit quality. CREDIT SUISSE: Moody's Lowers Ratings Class M & N Certificates -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of two classes and affirmed the ratings of 15 classes of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2005-CND2 and placed four classes on review for possible downgrade: - Class A-1, $388,128,920 Floating, affirmed at Aaa - Class A-1S, $41,198,519, Floating, affirmed at Aaa - Class A-1J, $40,000,000, Floating, affirmed at Aaa - Class A-2, $386,000,000, Floating, affirmed at Aaa - Class A-X-1, Notional, affirmed at Aaa - Class A-X-2, Notional, affirmed at Aaa - Class A-X-3, Notional, affirmed at Aaa - Class A-X-4, Notional, affirmed at Aaa - Class A-Y, Notional, affirmed at Aaa - Class B, $64,000,000, Floating, affirmed at Aaa - Class C, $63,000,000, Floating, affirmed at Aaa - Class D, $39,000,000, Floating, affirmed at Aa1 - Class E, $36,000,000, Floating, affirmed at Aa2 - Class F, $35,000,000, Floating, affirmed at Aa3 - Class G, $37,000,000, Floating, affirmed at A1 - Class H, $33,000,000, Floating, currently rated A2; on review for possible downgrade - Class J, $36,000,000, Floating, currently rated A3; on review for possible downgrade - Class K, $32,000,000, Floating, currently rated Baa2; on review for possible downgrade - Class L, $32,000,000, Floating, currently rated Baa3; on review for possible downgrade - Class M, $23,000,000, Floating, downgraded to B1 from Ba1 - Class N, $18,835,048, Floating, downgraded to B3 from Ba3 The Certificates are collateralized by 10 senior participation interests secured by 12 properties. The loans range in size from 1.2% to 34.5% of the pool based on current principal balances. As of the March 15, 2006 distribution date, the transaction's aggregate certificate balance has decreased by approximately 34.5% to $1.30 billion from $1.99 billion at securitization as the result of the payoff of nine loans and partial property releases associated with six loans. The pool contains transitional assets that are undergoing conversion for sale as residential condominiums. Moody's is downgrading Classes M and N and placing Classes H, J, K and L on review for possible downgrade due to challenging market conditions in the south Florida condominium market and performance issues concerning the Prestige Portfolio and Mizner Court at Broken Sound Loans. The Prestige Portfolio Loan ($52.8 million -- 5.3%) is secured by two garden apartment complexes (488 units) located in Delray Beach, Florida. Although three of the original five properties were sold and released from the mortgage lien, the two remaining properties have had no condominium sales and are being operated as rentals. The Mizner Court at Broken Sound Loan ($57.3 million -- 4.4%) is secured by a 450 apartment units located in Boca Raton, Florida. There have been no condominium sales and the borrower is operating the complex as a rental property. There are also issues concerning the Manhattan House (34.5%), River Terrace (14.5%) and Hotel Gansevoort/Paradiso Residences (16.1%) loans. The Manhattan House Loan is secured by a 583-unit apartment building on New York City's Upper East Side which is being converted to a condominium. The final offering plan for the conversion was accepted by the New York Attorney General's office only within the past several weeks; therefore condominium units have just recently been available for sale. The loan matures in November 2007. For the borrower to exercise the first of two 12- month extension options it must either repay a portion of the loan or have entered into sales contracts at a specified gross sales price. The River Terrace Loan is secured by an apartment building located on New York City's Upper East Side. The property contains 408 rental units that are being converted to a condominium with 345 units after a consolidation of units. The project is being converted in conjunction with Arizona-based spa resort Miraval and will feature spa, gym and nutrition plans. Units sales have been slower than anticipated with approximately 41 units currently in- contract. The loan matures in November 2007 and a significant increase in sales is required to meet the sales hurdle necessary to exercise a 12-month extension option. The Hotel Gansevoort/Paridiso Residences Loan is secured by a mixed use property located in South Beach (Miami Beach), Florida. The property, which is configured as a 593-room hotel, is currently being renovated and converted into 299 residential condominium units, 54 hotel-condominium units and a 240-room full- service hotel. To-date 108 units are in-contract (91 condominiums, 17 condo-hotel units). Sales have stagnated with no additional sales over the past eight months. Construction is behind schedule and has resulted in further delays in closing unit sales which are now expected to commence in mid-summer 2007. The hotel is expected to open for business in the third quarter of 2007. The Miami Beach condominium market data indicates a declining sales velocity and a growing inventory of units available for sale. The Toy Building Loan (14.5%), which is secured by four contiguous office buildings located in the Flatiron District of New York City, was financed for conversion into 556 residential condominium units. Although the project is approximately six months behind schedule and there have been no unit sales, a portion of the property is under contract of sale at an amount sufficient to repay the outstanding mortgage debt. Moody's will continue to monitor the progress of the sale. CUTTING EDGE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Cutting Edge Enterprises, Inc. aka Cutting Edge Tobacco, Inc. 4140 Clemmons Road P.O. Box 297 Clemmons, NC 27012 Bankruptcy Case No.: 07-50585 Chapter 11 Petition Date: April 16, 2007 Court: Middle District of North Carolina (Winston-Salem) Judge: William L. Stocks Debtor's Counsel: R. Bradford Leggett, Esq. Allman Spry Leggett & Crumpler, P.A. P.O. Box 5129, Suite 700 380 Knollwood St. Winston-Salem, NC 27113-5129 Tel: (336) 722-2300 Fax: (336) 722-8720 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Alternative Brands, Inc. $6,636,366 321 Farmington Road Mocksville, NC 27028 State of California $1,761,426 c/o Edmund G. Brown, Jr., Attorney General 1300 I Street, Suite 1740 Sacramento, CA 95814 State of New York $1,761,160 c/o Andrew Cuomo, Attorney General Department of Law The Capitol, 2nd Floor Albany, NY 12224 Commonwealth of Pennsylvania $793,067 c/o Tom Corbett, Attorney General 1600 Strawberry Square Harrisburg, PA 17120 State of Ohio $695,176 c/o Marc Dann, Attorney General State Office Tower 30 East Broad Street Columbus, OH 43266-0410 State of Illinois $642,286 c/o Lisa Madigan, Attorney General cames R. Thompson Center 100 West Randolph Street Chicago, IL 60601 State of Michigan $600,569 c/o Mike Cox, Attorney General P.O. Box 30212 525 West Ottawa Street Lansing, MI 48909-0212 State of Massachusetts $557,379 c/o Martha Coakley, Attorney General 1 Ashburton Place Boston, MA 02108-1698 State of New Jersey $533,845 c/o Richard J. Hughes, Attorney General Justice Complex 25 Market Street - CN 080 Trenton, NJ 08625 N.C. Department of Revenue $421,684 Tobacco Products Unit P.O. Box 25000 Raleigh, NC 27640 State of Maryland $311,943 c/o Douglas F. Gansler, Attorney General 200 St. Paul Place Baltimore, MD 21202-2202 State of Louisiana $311,239 c/o Charles Foti, Attorney General P.O. Box 94095 Baton Rouge, LA 70804-4095 State of Georgia $338,715 c/o Thurbert E. Baker, Attorney General 40 Capitol Square, Southwest Atlanta, GA 30334-1300 State of Tennessee $336,843 c/o Robert E. Cooper, Jr. Attorney General 500 Charlotte Avenue Nashville, TN 37243 State of North Carolina $321,855 c/o Roy Cooper, Attorney General Department of Justice P.O. Box 629 Raleigh, NC 27602-0629 State of Missouri $313,895 c/o Jeremiah W. Nixon, Attorney General Supreme Court Building 207 West High Street Jefferson City, MO 65101 State of Indiana $281,493 c/o Steve Carter, Attorney General Indiana Government Center South, 5th Floor 402 West Washington Street Indianapolis, IN 46204 State of Connecticut $256,202 c/o Richard Blumenthal, Attorney General 55 Elm Street Hartford, CT 06141-0120 Commonwealth of Kentucky $243,040 c/o Greg Stumbo, Attorney General State Capitol Room 116 Frankfort, KY 40601 State of Alabama $223,026 c/o Troy King, Attorney General State House, 11 South Union Street Montgomery, AL 36130 CVS CORP: Gets Sued for Exposing Hundreds of Customer Records ------------------------------------------------------------- Texas Attorney General Greg Abbott took legal action Tuesday against CVS Pharmacy for exposing its customers to identity theft. According to court documents filed by the Attorney General, CVS violated a 2005 law requiring businesses to protect any customer records that contain sensitive customer information, including credit and debit card numbers. Investigators with the Office of the Attorney General discovered that a CVS store in Liberty, near Houston, exposed hundreds of its customers to identity theft by failing to properly dispose of records that contained sensitive information. The investigation was launched after reports indicated that bulk customer records were tossed in a dumpster behind the store. Investigators also found several medical prescription forms that included each customer's name, address, date of birth, issuing physician and the types of medication prescribed. The documents obtained by OAG investigators also contained hundreds of active debit and credit card numbers, complete with expiration dates. "Identity theft is one of the fastest growing crimes in the United States," Attorney General Abbott said. "Texas law protects sensitive personal information in order to prevent this widespread crime. Texans can rest assured that we will continue aggressively cracking down on vendors who jeopardize the confidentiality of their clients' sensitive information." CVS is accused of violating the 2005 Identity Theft Enforcement and Protection Act, which requires businesses to protect and properly dispose of documents that include clients' sensitive personal information. Under the law, the OAG has the authority to seek penalties of up to $50,000 per violation. The Attorney General also charged CVS with violating Chapter 35 of the Business and Commerce Code, which requires businesses to develop retention and disposal procedures for their clients' personal information. The law provides for civil penalties of up to $500 for each abandoned record. Attorney General investigators are also working to determine if any exposed data has been used illegally. Caremark Shareholders Approve Merger Proposal Last month, Caremark Rx Inc. shareholders voted approving a merger proposal from CVS. Caremark provides comprehensive prescription benefit management services to over 2,000 health plans, including corporations, managed care organizations, insurance companies, unions and government entities. "The vote reinforces the compelling logic underpinning the merger of the nation's largest pharmacy chain with the leading pharmacy services company and speaks to the tremendous opportunity we have before us," Tom Ryan, Chairman, President and Chief Executive Officer of CVS Corporation said. "We have said from the beginning that this combination will transform the way pharmacy services are delivered, enabling consumers to benefit from enhanced healthcare services and improved outcomes, and for payors to benefit from more effective cost management tools. Now that we have obtained approval from both CVS and Caremark shareholders, we can begin delivering on this opportunity." About CVS Corp. CVS Corp. (NYSE: CVS) -- http://www.cvs.com/-- is a retail pharmacy in the U.S. and operates approximately 6,200 retail and specialty pharmacy stores in 43 states and the District of Columbia. With more than 40 years in the retail pharmacy industry, CVS serves the healthcare needs of all customers through its CVS/pharmacy stores; its online pharmacy, CVS.com; its retail- based health clinic subsidiary, MinuteClinic; and its pharmacy benefit management, mail order and specialty pharmacy subsidiary, PharmaCare. * * * As reported in the Troubled Company Reporter on March 8, 2007, Moody's Investors Service confirmed the Ba1 rating of CVS Corp.'s $125 million Series A-2 lease obligations. DILLARD INC: Debt Reduction Prompts Fitch's Ratings Upgrade ----------------------------------------------------------- Fitch Ratings has upgraded Dillard's, Inc. ratings, as: -- Issuer Default Rating to 'BB' from 'BB-'; -- Senior Notes to 'BB' from 'BB-'; -- Capital Securities to 'B' from 'B-'. In addition, Fitch has affirmed its 'BB+' rating on Dillard's $1.2 billion secured credit facility, which is backed by a pledge of inventory. Dillard's had $1.3 billion of debt and hybrid capital securities outstanding as of Feb. 3, 2007. The Outlook is Stable. The upgrades reflect the company's improved credit measures driven primarily by ongoing debt repayment, and the expectation for additional debt reduction over the near term. They also reflect Dillard's solid liquidity and extensive real estate holdings balanced against ongoing softness in the company's sales and the challenging nature of the department store sector. Dillard's has been in a deleveraging mode for the past four years, and repaid $206 million of debt in 2006. Debt repayment combined with higher operating profit, with EBIT margin increasing to 4.2% in 2006 from 3.9% in 2005 due primarily to good inventory control, has resulted in strengthened credit metrics. In 2006, adjusted debt/EBITDAR strengthened to 2.3 times (x) from 2.7x in 2005 and EBITDAR/interest plus rents improved to 4.1 times from 3.9x over the same period. This improvement is despite weak sales trends in Dillard's business. While Dillard's has been employing a strategy of attracting younger and more affluent customers with upscale and contemporary fashions, this strategy has not evolved to the point that it is driving meaningful incremental floor traffic, and comparable store sales were down 1% in 2006 following a flat 2005. Over the near term, Fitch expects Dillard's will continue to repay debt maturities, including $101 million that comes due in 2007, with operating cash flow and existing liquidity ($194 million of cash on hand as of Feb. 3, 2007). This debt repayment combined with steady operating results should lead to a modest further reduction in leverage in 2007. DUANE READE: Planned Acquisition Prompts Moody's to Hold Ratings ---------------------------------------------------------------- Moody's affirmed all ratings of Duane Reade, Inc. including the corporate family rating at Caa1, the second-lien senior notes at B3, and the senior subordinated notes at Caa3. The rating action follows the announcement that Duane Reade will acquire 8 stores in Manhattan from Gristede's and that Oak Hill and the other owners have agreed to fund the transaction plus other 2007 capital expenditures with a preferred stock investment of $39.4 million. So far $13 million of the preferred stock has been placed. The rating outlook continues to be stable. These ratings are affirmed: - Corporate Family Rating at Caa1; - Probability of Default Rating at Caa1; - $210 million floating rate secured senior notes (2010) at B3 (LGD 3, 37%); - $195 million 9.75% senior subordinated notes (2011) at Caa3 (LGD 6, 90%). Moody's does not rate the $225 million asset-based credit facility. Constraining the ratings are Duane Reade's record of flat revenue and operating losses when other rated drug stores have grown sales and profits, weak credit metrics such as high leverage and low fixed charge coverage, and Moody's expectation that free cash flow will remain modestly negative for at least the next four quarters. However, Moody's believes that Duane Reade has adequate liquidity over the short-term given that operating performance has started to modestly recover and free cash flow deficits have narrowed since the second quarter of 2006. For the company to become self- sustaining over the longer term, and eventually to be upgraded to a B-level rating, operating performance must soon improve enough for free cash flow to become positive. In accordance with Moody's hybrid securities methodology, the new preferred stock falls in basket B (75% debt / 25% equity). Given that the incremental debt is minute relative to the total capital structure, it does not meaningfully impact the credit metrics. The stable outlook reflects Moody's opinion that Duane Reade has sufficient liquidity to fund its likely short-term free cash flow deficit, assuming that operating performance continues to improve. Moody's anticipates that revolver borrowings and increased inventory efficiency will continue to fund the high fixed charge burden over the next four quarters. Pressure on the ratings and/or outlook would occur if operating performance does not continue improving, the company's adequate liquidity position deteriorates, or credit metrics decline from current weak levels. Improvement of the rating and/or outlook would require sustained growth in sales and operating performance, improvement of free cash flow until incremental revolver borrowings are not needed, and a sustained improvement in weak credit metrics such that leverage falls below 7 times and EBIT covers interest expense by 1 time. Duane Reade Inc, headquartered in New York City, operates 248 drug stores principally in Manhattan and the outer boroughs of New York City. Revenue for the twelve months ending December 30, 2006 equaled $1.6 billion. EDDIE BAUER: BDO Seidman Removes Going Concern Doubt Opinion ------------------------------------------------------------ Eddie Bauer Holdings, Inc. disclosed that, after the refinancing completion of its outstanding debt on April 4, 2007, BDO Seidman LLP, its independent auditor, removed the explanatory paragraph with respect to the company's ability to continue as a going concern from its audit opinion on the company's Financial Statements for fiscal year ended Dec. 30, 2006. Amended Financial Statements for the fiscal year ended Dec. 30, 2006 along with this revised opinion thereon were filed with the Securities and Exchange Commission on a Form 8-K on April 17, 2007. As reported in the Troubled Company Reporter on April 5, 2007, BDO Seidman raised substantial doubt about Eddie Bauer Holdings Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's ability to refinance its term loan to avoid an event of default related to the failure of the company in meeting its financial covenants in one or more future interim periods. The successor company had a net loss of $211.4 million on total revenues of $1 billion for the year ended Dec. 31, 2006. For the six month-period ended Dec. 31, 2005, the successor company had a net loss of $22.8 million on total revenues of $593.7 million. The predecessor company had a net income of $60.9 million on total revenues of $465.7 million for the six month-period ended July 2, 2005. The company listed total assets of $855.9 million and total liabilities of $509.3 million, resulting to total stockholders' equity of $346.6 million as of Dec. 31, 2006. About Eddie Bauer Headquartered in Redmond, Washington, Eddie Bauer Holdings Inc. (NASDAQ: EBHI) -- http://www.eddiebauer.com/-- is a specialty retailer that sells casual sportswear and accessories for the "modern outdoor lifestyle." Established in 1920 in Seattle, Eddie Bauer products are available at approximately 380 stores throughout the United States and Canada, through catalog sales and online at http://www.eddiebaueroutlet.com/ The company also participates in joint venture partnerships in Japan and Germany and has licensing agreements across a variety of product categories. Eddie Bauer employs 10,000 part-time and full-time associates in the United States and Canada. * * * As reported in the Troubled Company Reporter on March 26, 2007, Standard & Poor's Rating Services lowered the ratings on Eddie Bauer Holdings Inc., to 'B-' from 'B'. At the same time, Standard & Poor's removed the rating from CreditWatch with negative implications, where it was placed on Nov. 13, 2006. The outlook is negative. EDUCATE SERVICES: Moody's Rates $185 Million Loans at (P)Ba2 ------------------------------------------------------------ Moody's Investors Service assigned (P)Ba2 and (P)B3 ratings respectively to the proposed first and second lien senior secured credit facilities of Educate Services, Inc., a newly formed wholly owned subsidiary of Educate, Inc. Concurrently, Moody's assigned a (P)B1 Corporate Family Rating to Educate Services. The $170 million first lien term loan due 2012, along with the $105 million second lien term loan due 2013 and about $240 million of sponsor equity will be used to purchase the equity of the company, refinance existing debt and pay fees and expenses associated the transaction. The sponsors include members of management, Sterling Capital Partners and Citigroup Private Equity. The transaction is expected to close in the second quarter subject to shareholder and regulatory approvals. Concurrently with the acquisition, the company-owned learning centers, products, Progressus and online businesses will be separately sold to the sponsors. The company-owned learning centers will be sold in exchange for a $50 million unsecured note. The ratings are supported by the proposed divestiture of the company-owned centers, the financial incentives inherent in a franchise model and the resulting focus and inherent stability in Educate Services' retained businesses. The ratings are further supported by good interest coverage for the rating category. The ratings also reflect the geographical diversity and stability of the company's franchise revenues, strong market share, brand value, as well as high operating margins and low maintenance capital expenditures. On the Catapult Learning side, the company benefits from long-term contractual relationships with school districts and individual schools and the potential for further growth as public and non-public schools continue to outsource certain activities. The ratings are constrained by the company's relatively high initial leverage, the company's relatively small size, and the competitiveness of the pre-kindergarten through 12th-grade tutoring business, both from corporate providers and individual teachers, which places constraints on pricing and system-wide revenues. The Ba2-ratings on the first lien credit facilities, which consist of a $15 million revolver and $170 million first lien term loan B reflect Moody's expectation of loss-given-default greater or equal to 10% but less than 30% (LGD 2). The borrower is Educate Services, Inc. and the facilities are guaranteed by the parent and all material domestic subsidiaries. The B3-rating on the $105 million second lien term loan reflects Moody's expectation of loss-given-default greater or equal to 70% but less than 90% (LGD 5). As for the first lien facilities, the borrower is Educate Services, Inc., with parent and domestic subsidiary guarantees. Moody's took these rating actions: Educate Services, Inc.: * Assigned (P)B1 Corporate Family Rating. * Assigned (P)Ba2 (LGD2, 28%) to $15 million senior secured revolving credit facility due 2012; * Assigned (P)Ba2 (LGD2, 28%) to $170 million first lien term loan B due 2013; * Assigned (P)B3 (LGD5, 80%) to $105 million second lien term loan due 2014. The outlook for the ratings is stable. Definitive ratings will be assigned following completion of the transaction. The existing ratings of Educate continue to be under review, subject to confirmation and withdrawal following the repayment of the debt. If the transaction is not completed, existing ratings will likely be downgraded. Educate, Inc.: * The B1 rated Corporate Family Rating. Educate Operating Company, LLC: * The Ba3 (LGD2, 24%) $30 million senior secured revolving credit facility due 2009; * The Ba3 (LGD2, 24%) $159 million senior secured term loan B due 2012. Educate Operating Company, LLC, is the operating subsidiary of Educate Inc. The company, headquartered in Baltimore, Maryland, is a leading education services company for students ranging from pre-kindergarten through high school. Its portfolio of brands includes Sylvan Learning Centers, which provides customized supplemental, remedial and enrichment programs in reading, writing and mathematics; Hooked on Phonics, which delivers early reading, math and study skills programs; and Catapult Learning, a leading provider of educational services to public and non-public schools. Educate had revenues of about $355 million and operating income of about $6 million in fiscal 2006. In January 2007, Educate entered into an agreement to be acquired by a group of investors including members of management, Sterling Capital Partners and Citigroup Private Equity. Net of the financial results of National Learning Centers, Educate Products, Progressus and Educate Online, the retained businesses had revenues of about $168 million and operating income (after corporate allocations) of about $48 million in fiscal 2006. EMBARCADERO AIRCRAFT: S&P Puts Two Notes Ratings' on CreditWatch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its rating on the class A-2 notes issued by Embarcadero Aircraft Securitization Trust on CreditWatch with positive implications. At the same time, the rating on the class A-1 notes was placed on CreditWatch with negative implications. Both ratings formerly had negative outlooks. The CreditWatch actions reflect recent asset sales, which have resulted in increased amortization to the class A-2 notes while reducing the future lease stream available to pay the class A-1 notes. EAST is backed by a pool of 32 aircraft operating leases originated by Lehman Bros. Inc. and GATX Capital Corp. in 2000. Since 2002, lessee defaults, reductions in aircraft lease rates, and increases in aircraft-related expenses have stressed available collections. In January 2007, servicing on the leases was transferred from EAST to Macquarie Aircraft Leasing Ltd. Standard & Poor's will complete a detailed review of the credit performance of the transaction in order to determine whether any rating actions are warranted. Rating Placed on Creditwatch Positive Embarcadero Aircraft Securitization Trust Rating ------ Class To From ----- -- ---- A-2 BB/Watch Pos BB/Negative Rating Placed on Creditwatch Negative Embarcadero Aircraft Securitization Trust Rating ------ Class To From ----- -- ---- A-1 BB/Watch Neg BB/Negative FERTINITRO FINANCE: Moody's Holds B3 Rating on $250 Million Notes ----------------------------------------------------------------- Moody's Investors Service confirmed the B3 senior secured rating of FertiNitro Finance Inc.'s $250 million 8.29% senior secured notes due 2020. The confirmation concludes the review for downgrade that was initiated on November 15, 2006. The rating outlook is stable. The review was prompted by concerns over the potential for future operational disruptions at the complex which were highlighted in late 2006 by the project's independent engineers and the potential impact on the project's liquidity should extended downtime be required. In confirming the rating Moody's recognizes FertiNitro's continued stable operating performance since the review was initiated and the project operator's future plans to address any operational issues at the facility. Plans to replace certain equipment at the ammonia operations, as highlighted by the independent engineer, are going ahead; although required lead-times will delay any immediate action. Moody's believes the project operators should be able to manage any corrective action while maintaining adequate liquidity to support its ongoing operations and debt service requirements. Supporting this improved profile is the current attractive market for nitrogen products which have resulted in demand and pricing that compare favorably to what was forecast in the original offering circular in 1998. In addition, we note that ammonia and urea production year-to-date is greater than 100% of budget and the plant is currently operating at approximately 97% of its nameplate capacity for urea production. Stability in the current price environment for ammonia and urea combined with the absence of any material operating difficulties should support the stable outlook going forward. FertiNitro Finance, Inc. is a Cayman Islands special purpose financing vehicle for the $1.0 billion ammonia/urea project located in Venezuela. The project is designed to produce ammonia and urea, primarily from domestically sourced methane gas feed- stocks. Primary sponsors/off-takers are Koch Oil (35%) and Pequiven (35%), a petrochemical subsidiary of Venezuelan government owned, PDVSA. FIRST CONSUMERS: Moody's Withdraws B2 Rating on Class C Notes ------------------------------------------------------------- Moody's withdrew the rating on First Consumers Credit Card Master Trust, Series 2001-A, Class C notes pursuant to noteholders' request. The Class C notes were rated B2 prior to the withdrawal. This rating withdrawal precedes several amendments to various trust documents, dated April 16, 2007. The complete rating action is: Issuer: First Consumers Credit Card Master Note Trust * $36,000,000 Class C Asset-Backed Notes, Series 2001-A, rating withdrawn from B2 FOAMEX INT'L: John Johnson Returns as Chief Executive Officer ------------------------------------------------------------- Foamex International Inc.'s board of directors has named John G. Johnson, Jr., as chief executive officer and a member of the board, effective immediately. Ray Mabus has resigned from his position as ceo and chairman of the board of directors in order to return to his home in Mississippi. The company also appointed Eugene I. Davis as non-executive chairman of the board of directors, effective immediately. "On behalf of the Board, I would like to welcome Jack back to Foamex," Mr. Davis said. "Jack is a proven leader who brings to Foamex an ideal combination of skills and experience, having led the company at a time when it enjoyed then historic levels of profitability and growth. The company is confident that Foamex will greatly benefit from his intimate knowledge of the company and industry experience as the company continues to focus on driving shareholder value through growth and de-leveraging." "Foamex is an established leader in the polyurethane foam manufacturing industry, and I am very pleased to be returning to the company," Mr. Johnson said. "I look forward to leading Foamex through its next phase of growth and implementing its strategic vision of being a market-focused provider of polyurethane foam- based solutions and specialty comfort products. I am excited by this opportunity and look forward to working with the entire Foamex team to realize the enormous potential that exists at Foamex." "The company would like to thank Ray for his significant contributions to Foamex over the past seven years," Mr. Davis said. "Most recently, stepping in as chief executive to lead Foamex through the successful completion of its financial restructuring. The proof of his efforts is evident in the results with Foamex emerging from bankruptcy having paid creditors in full and preserving value for equityholders. The company recognizes that commuting from Mississippi imposed substantial sacrifices on Ray and his family and understands his desire to return home now that Foamex has emerged so successfully from chapter 11. On behalf of the entire Board, we wish him well." Most recently, Mr. Johnson has been running his own management consulting business specializing in turnaround initiatives. Mr. Johnson currently serves as the non-executive chairman of GenTek Inc. He has been the lead director of Thermadyne Holdings for the last three years, but will be relinquishing this post to devote his time and efforts to Foamex. Mr. Johnson served as president and ceo of Foamex in from 1999 to 2001. Prior to joining Foamex, Johnson was president and chief executive officer of Safety-Kleen Corp., an environmental services company, from 1995 to 1997. Mr. Johnson also served as president, chief operating officer and director of Safety-Kleen Corp. from 1993 to 1995. From 1982 to 1992, Mr. Johnson held several executive positions with the ARCO Chemical Company, including senior vice president and director of ARCO Chemical Company and president of ARCO Chemical Americas beginning in 1987. Mr. Johnson began his career with the Atlantic Richfield Company in 1958. Eugene I. Davis, 52, has been a director of the company since February 2007. Mr. Davis has been chairman and chief executive officer of PIRINATE Consulting Group, LLC, a privately-held consulting firm specializing in turn-around management, merger and acquisition consulting, hostile and friendly takeovers, proxy contests and strategic planning advisory services for domestic and international public and private business entities, since 1997. Prior to forming PIRINATE in 1997, Mr. Davis served as president, vice-chairman and director of Emerson Radio Corp, and chief executive officer and vice-chairman of Sport Supply Group, Inc. Mr. Davis began his career as an attorney and international negotiator with Exxon Corporation and Standard Oil Company and as a partner in two Texas-based law firms where he specialized in corporate/securities law, international transactions and restructuring advisory. Mr. Davis is a director of Knology, Inc., PRG-Schultz International, Inc., Silicon Graphics, Inc. and American Commercial Lines Inc. Mr. Davis is also chairman of the board of directors of Atlas Air Worldwide Holdings, Inc. 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 April 16, 2007, 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. 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. GATEHOUSE MEDIA: Inks Bridge Credit Agreement with Wachovia ------------------------------------------------------------ GateHouse Media Inc. entered into a Bridge Credit Agreement with a syndicate of financial institutions with Wachovia Investment Holdings, LLC, as administrative agent. The Bridge Agreement provides for a $300 million term loan facility due April 11, 2015. The company can use the proceeds of the loan facility to: a. partly finance the acquisitions of (i) the assets of the following Gannett properties: The Rockford Register-Star, the Observer-Dispatch and The Norwich Bulletin, and (ii) the capital stock and assets of Copley Midwest, and b. pay fees and expenses incurred in connection with the Acquisitions and the Bridge Loan. The Bridge Loan will be available until May 31, 2007, in up to two draws. The Bridge Agreement is secured by a first priority security interest in all present and future capital stock of GateHouse Media Holdco Inc. owned by the company. As of April 13, 2007, $157 million was outstanding under the Bridge Loan. Borrowings under the Bridge Agreement bear interest, at the borrower's option, at a floating rate equal to the LIBOR Rate for a LIBOR Rate Loan, plus an applicable margin. During the first year of the facility, until April 11, 2008, the applicable margin for LIBOR Rate term loans and Base Rate term loans, is 1.50% and 0.50%, respectively. On the Pricing Step-Up Date and quarterly thereafter until the maturity date, the applicable margin for LIBOR Rate term loans and Base Rate term loans will be determined by reference to a pricing grid which is based on: i. the Total Leverage Ratio of the company, and ii. the ratings provided by Moody's Investors Service Inc. and by Standard & Poor's Ratings Services for the Bridge Loan for the corporate family of GHS. If the ratings for the Bridge Loan by Moody's is at least B3 and by S&P is at least B-, the applicable margin for LIBOR Rate term loans and Base Rate term loans will range from 3.50% to 4.25% and 2.50% to 3.25%, respectively; otherwise the applicable margin for LIBOR Rate term loans and Base Rate term loans will range from 4.00% to 4.75% and 3% to 3.75%, respectively. The company also is required to pay a quarterly commitment fee on the unused portion of the Bridge Loan, from the closing date of the Bridge Agreement until May 31, 2007, equal to 0.50%. No principal payments are due on the Bridge Loan until the maturity date. The company is required to prepay borrowings under the Bridge Agreement with: a. 100% of the net cash proceeds from the issuance or incurrence of debt by GHS and its restricted subsidiaries, b. 100% of the net cash proceeds from any issuances of equity by GHS or any of its restricted subsidiaries, and c. 100% of the net cash proceeds of assets sales and dispositions by the company and its subsidiaries, except, in the case of each of clause (a), (b) and (c), to the extent such proceeds are required to be applied to prepay indebtedness incurred under or are permitted to be reinvested under the terms of the Amended and Restated Credit Agreement, dated as of February 27, 2007, among GateHouse Media Holdco, Inc., GateHouse Media Operating, Inc. and certain of their subsidiaries, the lenders parties thereto and Wachovia Bank, National Association, as administrative agent. The company can voluntarily prepay the Bridge Loan at any time. If the company prepays the Bridge Loan before April 11, 2008, the company will not be required to pay a prepayment premium. With respect to voluntary or mandatory prepayments in the next two years, the company will be required to pay a premium equal to: a. 102% of the principal amount being prepaid if such prepayment is made after April 11, 2008 but on or before April 11, 2009, and b. 101% of the principal amount being prepaid if such prepayment is made after April 11, 2009 but on or prior to April 11, 2010. No prepayment premium will be assessed thereafter. About GateHouse Media Headquartered in Fairport, New York, GateHouse Media, Inc. (NYSE: GHS), is a publisher of locally based print and online media in the U.S. It currently owns over 445 community publications, including 7 white and yellow page directory publications located in 18 states across the country, and more than 235 related websites reaching about 9 million people on a weekly basis. * * * As reported in the Troubled Company Reporter on March 20, 2007, Moody's placed ratings of GateHouse Media Operating, Inc. under review for possible downgrade, following the company's announcement that it has signed a definitive stock and asset purchase agreement to acquire 9 publications from The Copley Press, Inc. for a net purchase price, including working capital adjustments, of $380 million. The ratings placed under review include the company's $40 million senior secured first lien revolving credit facility, due 2014 -- B1; $670 million senior secured term loan B, due 2014 -- B1; $250 million senior secured delayed draw term loan, due 2014 -- B1; Corporate Family rating -- B1; and Probability of Default rating -- B2. GE COMMERCIAL: S&P Rates $15 Million Class Q Certificates at B- --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to GE Commercial Mortgage Corp. Series 2007-C1 Trust's $4.230 billion commercial mortgage pass-through certificates series 2007-C1. The preliminary ratings are based on information as of April 16, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Class A-1, A-2, A-3, A- AB, A-4FX, A-1A, X-P, X-W, A-MFX, A-JFX, B, C, and D are currently being offered publicly. The remaining classes will be offered privately. Standard & Poor's analysis determined that, on a weighted average basis, the pool has a debt service coverage of 1.09x, a beginning LTV of 120.6%, and an ending LTV of 116.9%. Preliminary Ratings Assigned GE Commercial Mortgage Corp. Series 2007-C1 Trust Preliminary Recommended Class Rating amount credit support ----- ------ ----------- -------------- A-1 AAA $68,000,000 30.000% A-2 AAA $491,000,000 30.000% A-3 AAA $187,000,000 30.000% A-AB AAA $52,730,000 30.000% A-4FX AAA $853,200,000 30.000% A-1A AAA $1,309,678,000 30.000% X-P* AAA TBD N/A X-W* AAA TBD N/A A-MFX AAA $423,086,000 20.000% A-JFX AAA $317,316,000 12.500% B AA+ $37,020,000 11.625% C AA $52,886,000 10.375% D AA- $42,308,000 9.375% A-4FL** AAA TBD 30.000% X-C* AAA TBD N/A A-MFL** AAA TBD TBD A-JFL** AAA TBD TBD E A+ $31,732,000 8.625% F A $31,731,000 7.875% G A- $42,309,000 6.875% H BBB+ $52,886,000 5.625% J BBB $42,309,000 4.625% K BBB- $58,174,000 3.250% L BB+ $15,866,000 2.875% M BB $15,865,000 2.500% N BB- $10,578,000 2.250% O B+ $10,577,000 2.000% P B $10,577,000 1.750% Q B- $15,866,000 1.375% T NR $58,174,687 0.000% * Interest-only class with a notional amount. ** Floating-rate class. Ongoing ratings of floating-rate classes will be partially dependent upon the rating of the swap counterparty. NR -- Not rated. N/A -- Not applicable. TBD -- To be determined. GENERAL MOTORS: Q1 Sales Up in Latin America, Africa & Middle East ------------------------------------------------------------------ General Motors Latin America, Africa & Middle East region set a new first quarter sales record in 2007, selling over 269,000 vehicles, up approximately 39,000 units over the same period last year. Plus, GM's quarterly market share in the region increased 0.2% to 16.3%. Ten markets in the GM LAAM region posted Q1 sales volume gains year-over-year, with all-time quarterly records set by Argentina and Colombia. In addition, Brazil, Chile, Venezuela, South Africa, Egypt and the Middle East set Q1 sales records. Maureen Kempston Darkes, President of GM LAAM said, "LAAM's Q1 results illustrate that we are serious about growth -- LAAM sales now account for almost 12 percent of GM's global sales." Kempston Darkes added, "We are continuing to focus on aggressive product launches, which are the drivers of our growth. In Q1 2007, we launched the Chevrolet Captiva across the region, GMC Acadia in the Middle East and the Cadillac BLS and SRX in South Africa." LAAM also set a new monthly sales record of 102,258 vehicles in March 2007, up approximately 18,500 over last March. GM LAAM is one of GM's four regional business units. It employs approximately 33,000 people throughout the region. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. U.S. Sales GM disclosed in an April 3, 2007 press statement that its first quarter retail sales was up 0.5% while its sales for March 2007 was down 7.7%. For the first quarter of 2007, GM delivered 909,094 vehicles, a decline of 5.6%, driven by reductions of almost 60,000 daily rental vehicle sales. For the first quarter of 2007, GM retail sales were up 0.5%. The reductions in fleet sales have resulted in a significant improvement in the retail/fleet mix. GM dealers in the United States delivered 349,867 vehicles in March, a reduction of 7.7% on a sales day-adjusted basis (down 4.2% non-adjusted), compared with 365,375 total sales a year ago. Fleet sales were down 11.8% due to continuing reductions in daily rental sales. GM's March retail sales were down 6.2% compared with year-ago levels on a sales day-adjusted basis (down 2.8% non- adjusted). "As we continue to build upon our strategy of focusing on value, lowering daily rental sales and increasing residual values, we were able to grow retail sales for the quarter, posting year-over- year increases in 19 vehicle lines. That's very good news. In March, we saw continued strength and stability in our retail business led by gains in mid-cars, crossovers, economy cars and luxury SUVs," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. About General Motors Corp. General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- is the world's largest automaker and has been the global industry sales leader for 76 years. GM currently employs about 280,000 people around the world. GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under these brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating and other ratings on General Motors Corp. and removed them from CreditWatch with negative implications, where they were placed March 29, 2006. S&P said the outlook is negative. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the $1.5 billion secured term loan of General Motors Corp. As reported in the Troubled Company Reporter on Nov. 14, 2006, Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the $1.5 billion secured term loan of General Motors Corp. GENESIS TECH: Posts $675,282 Net Loss in Quarter Ended December 31 ------------------------------------------------------------------ Genesis Technology Group Inc. reported a net loss of $675,282 for the first quarter ended Dec. 31, 2006. This compares with a net loss of $223,123 for the first quarter ended Dec. 31, 2005. The first quarter ended Dec. 31, 2006, included a one-time settlement income of $157,500 related to the settlement of a lawsuit with a former director and employee. For the first quarter Dec. 31, 2006, the company had zero revenues compared to $5,000 for the first quarter a year ago. Operating expenses increased $576,982, or 213%, to $848,224 during the first quarter of fiscal 2006 compared to $271,242 for the first quarter of fiscal 2005, primarily attributable to salaries and stock-based compensation expense which increased $422,820 to $616,982 during the current quarter, from $194,162 for the prior period quarter, and selling, general and administrative expenses which increased $102,432 to $179,512 during the first quarter of fiscal 2006 from $77,080 during the first quarter of fiscal 2005. On Nov. 21, 2006, in connection with the settlement of a lawsuit with a former director and employee, the company entered into a Settlement and Release Agreement whereby the former director and employee returned 1,575,000 shares of the company's common stock owned by him. In connection with the return of the 1,575,000 shares of common stock, the company recorded settlement income of $157,500 based on the fair market value of the common stock on the date of settlement. At Dec. 31, 2006, the company's balance sheet showed $5,310,607 in total assets, $352,509 in total liabilities, $18,379 in minority interest and $4,939,719 in total shareholders' equity. Additionally, accumulated deficit stood at $17,243,901. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1d43 Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 19, 2007, Sherb & Co. LLC in Boca Raton, Fla., expressed substantial doubt about Genesis Technology Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2006. The auditing firm cited that the company has an accumulated deficit of $16,568,619 and has cash used in operations of $914,353 for the year ended Sept. 30, 2006. Genesis Technology Group Inc. (OTC BB: GTEC.OB) -- http://www.genesis-technology.net/-- is a business development and marketing firm that specializes in advising and providing a turn key solution for Chinese small and mid-sized companies entering Western markets. GOLF TRUST: Inks $1.2 Million Non-Revolving Loan with Patriot Bank ------------------------------------------------------------------ Golf Trust of America Inc., GTA-IB Golf Resort LLC and its wholly owned subsidiaries, GTA-IB LLC and GTA-IB Condominium LLC, entered into a Business Loan Agreement, effective as of April 10, 2007, with Patriot Bank, a community banking facility with respect to a non-revolving loan in an amount up to the principal amount of $1.2 million. The Loan is secured by a first priority mortgage on three wholly owned condominium units located at the Innisbrook Resort and Golf Club, pursuant to a Commercial Security Agreement, Promissory Note and Mortgage entered into by the Loan Parties on the Closing Date in connection with the Loan Agreement. On the Closing Date, the company borrowed pursuant to the Loan Agreement $20,279 to pay the closing costs related to the Loan. Subject to compliance with the Loan Agreement by the Borrowers, the company has the right to draw down the remainder of the principal amount available under the Loan Agreement over time to finance renovations of the company's restaurants, information technology infrastructure upgrades at the Resort, other property improvements at the Resort and short-term working capital shortfalls of the company or the Resort. The Loan bears interest at the floating Wall Street Journal Prime rate, which is currently at 8.25% and provides for interest only payments through Dec. 31, 2007. Beginning with the monthly payment due on Jan. 31, 2008, the Loan Agreement requires principal and interest payments based on a twenty-year amortization schedule. There is no prepayment penalty for early repayment. Any balance of the Loan, unpaid on April 10, 2010, must be repaid in full on that date. About Golf Trust Headquartered in Charleston, South Carolina, Golf Trust of America Inc. (AMEX:GTA) -- http://www.golftrust.com/-- was formerly a real estate investment trust but is now engaged in the liquidation of its interests in golf courses in the United States pursuant to a plan of liquidation approved by its stockholders. The company currently owns two properties (6 eighteen-hole equivalent golf courses). As of Sept. 30, 2006, the company had $12,493,000 net assets in liquidation. GRANITE BROADCASTING: Files Modified Amended Chapter 11 Plan ------------------------------------------------------------ Granite Broadcasting Corp. and its subsidiaries delivered a Modified First Amended Plan of Reorganization to the U.S. Bankruptcy Court for the Southern District of New York on April 13, 2007. Granite's First Amended Plan clarifies that the Silver Point Finance, LLC entities and any other holder of a secured claim are specifically exculpated by the Debtors and any holder of any Claim or interest from any liability arising from their participation in any capacity in the Debtors' reorganization cases. However, nothing will exculpate the Silver Point entities and Secured Claim Holders from willful misconduct, gross negligence, intentional fraud, or criminal conduct. As reported in the Troubled Company Reporter on March 8, 2007, The Court, on March 2, 2007, entered its formal order approving the Debtors' Disclosure Statement citing that it contained adequate information within the meaning of Section 1125 of the Bankruptcy Code; all objections to the Disclosure Statement that have not been otherwise resolved, are overruled. Overview of the Plan The Amended Plan provides, among other things, a revised classification and treatment of claims and interests, provisions for the assumption and rejection of executory contracts and unexpired leases, and the deletion of the provision for minimum distribution. The Amended Plan also incorporates: i. the appointment of Andrew Hruska, Esq., at King & Spalding LLC, on Feb. 23, 2007, as Examiner; ii. the stipulations resolving claims filed by Stuart Beck and Twentieth Television and Twentieth Century Fox Film Corporation; and iii. biographical information regarding the management of the Reorganized Debtors. Reorganization Considerations The Amended Plan provides for certain conditions that must be satisfied or waived prior to confirmation of the Plan including that (i) the total amount of Cash required to pay Allowed Claims in Classes 4A, 5, 6, 7, 8, and 9 will not exceed $11,000,000, and (ii) the occurrence of the Plan Effective Date. According to the valuation analysis prepared by the Debtors' financial advisor, Houlihan Lokey Howard & Zukin Capital, Inc., the value of the collateral securing the Secured Claims is less than the amount of the Claims, and, therefore, holders of (i) Claims in Classes 4A, 5, 6, 7, 8, and 9 and (ii) Interests in Classes 10, 11, and 12 are not entitled to receive a distribution under the Plan or the Bankruptcy Code's distribution priority scheme. The Debtors' note that there is no assurance that the Court will adopt their position on this matter, and therefore, holders of interests in Classes 10, 11 and 12 should not assume that they will necessarily receive the projected distributions unless and until the Court enters the confirmation order. Because the distributions to Classes 10, 11 and 12 are not mandatory under the Bankruptcy Code, under certain circumstances, the Debtors could modify the Plan to increase, reduce, or eliminate the distributions to holders of interests in Classes 10, 11, and 12 without providing any notice regarding the modifications to the parties. Holders of interests in Classes 10, 11, and 12 are advised to monitor closely the process leading to Plan confirmation. Classification of Claims and Interests The First Amended Plan classifies claims and interests into 14 classes: Class Description Recovery Amount ----- ----------- -------- ------ N/A DIP Claims 100% Undetermined N/A Administrative 100% $2,530,105 Expenses N/A Compensation and 100% 6,460,000 Reimbursement Claims of Professionals N/A Priority Tax 100% 0 Claims 1A-IF Secured Claims 90.9% 496,172,870 2 Secured Tax 100% 0 Claims 3 Priority Non-Tax 100% 0 Claims 4A Granite General 100% 2,086,899 Unsecured Claims 4B Malara Guaranty 0% up to Claims 29,281,000 5 KBWB General 100% 8,056,750 Unsecured Claims 6 KBWB License 100% 0 General Unsecured Claims 7 WEEK-TV 100% 0 License General Unsecured Claims 8 WXON General 100% 129,817 Unsecured Claims 9 WXON License 100% 0 General Unsecured Claims 10 Preferred 0% N/A Interests 11 Class A 0% N/A Interests 12 Class B 0% N/A Interests 13 Securities 0% 0 Claims 14 Subordinated 0% 0 Claims Holders of claims in Classes 1A-1F, 4A, 5, 6, 7, 8, and 9, as of March 2, 2007, are entitled to vote on the Plan. Classes 2 and 3 are conclusively presumed to accept the Plan and are not entitled to vote. Holders of claims in Classes 4B, 10, 11, 12, 13, and 14 are deemed to reject the Plan and are not entitled to vote. Classes 1A-1F, 4A, 4B, 5, 6, 7, 8, 9, 10, 11, 12, 13, and 14 are impaired. Classes 2 and 3 are unimpaired. The First Amended Plan provides a full recovery to unsecured creditors and a partial recovery to Granite's preferred and common stockholders. In the aggregate, approximately 90% of the holders of the Secured Claims have agreed to, or indicated that they intend to, support the Plan. Holders of Secured Claims will transfer a portion of their recoveries to holders of General Unsecured Claims, Preferred Interests, Class A Interests, and Class B Interests. Holders of the Term Loan A Claims and Term Loan B Claims have also agreed to forego payment in Cash by the Debtors of postpetition interest subject to the Plan being confirmed and consummated. Holders of an additional approximate 17% of the principal amount of the Debtors' Secured Notes have indicated that they intend to vote to support the Plan, subject to definitive documentation of a shareholders' agreement and related documentation, the principal terms of which have been negotiated and a copy of which will be included in a Plan Supplement. The Debtors disclose that Plan Supplements will be filed with the Court prior to April 6, 2007. No later than March 30, documents to be included in the Plan Supplements will be available at http://www.nysb.uscourts.gov/as they become available. For each month beyond Mar. 31, 2007, until the actual effective date of the Plan, the valuation level required to provide a distribution to holders of Preferred Interests increases by approximately $4,500,000 due to the accrual of postpetition interest on the Secured Claims at the default rate. Examiner's Report The Debtors do not believe that the Examiner's Investigation will uncover any claims held by the Debtors against the holders of Secured Claims because they contend that the allegations are wholly without merit. Silver Point Finance, LLC, concurs in the Debtors' belief, and additionally believes that the Debtors may hold claims against Harbinger Capital Partners Master Fund I, Ltd. and GoldenTree High Yield Master Fund II, Ltd. In addition, the Debtors believe that their board of directors fulfilled their fiduciary duties in consummating the Prepetition Credit Agreement, the Restructuring Support Agreement, and otherwise. Harbinger Capital, GoldenTree and MFC Global Investment Management (U.S.), LLC -- the Preferred Equity Shareholders -- however, believe the matters to be investigated have merit and could result in damages being recovered by the Debtors resulting in additional value available to be distributed to holders of Claims and Interests and, thus, could affect the distributions contemplated by the Plan. Although the Debtors do not believe there is any merit to the allegations that any of their lenders could be deemed an "insider" of the Debtors or that any avoidable transfers were made to these lenders, a contrary determination by the Court could have these consequences: (a) the period during which payments made by the Debtors to an entity found to be an insider, may be avoided as preferential payments may be extended from 90 days before the Petition Date to one year before the Petition Date; and (b) any ballots cast by an entity found to be an insider may not be counted for purposes of determining whether the Plan satisfies the requirement for confirmation set forth in Section 1129(a)(10). The Examiner' Report, due on April 2, 2007, will be posted on the Voting Agent's Web site at http://www.trumbullgroup.com/and will be available upon written request to the Voting Agent. A full-text copy of Granite's First Amended Plan of Reorganization is available at no charge at: http://ResearchArchives.com/t/s?1adb A full-text copy of Granite's Disclosure Statement explaining the First Amended Plan is available at no charge at: http://ResearchArchives.com/t/s?1adc About Granite Broadcasting Headquartered in New York, Granite Broadcasting Corp. -- http://www.granitetv.com/-- owns and operates, or provides programming, sales and other services to 23 channels in 11 markets: San Francisco, California; Detroit, Michigan; Buffalo, New York; Fresno, California; Syracuse, New York; Fort Wayne, Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin; Binghamton, New York; Utica, New York and Elmira, New York. The company's channel group includes affiliates of NBC, CBS, ABC, CW and My Network TV, and reaches approximately 6% of all U.S. television households. The company and five of its debtor-affiliates filed for chapter 11 protection on Dec. 11, 2006 (Bankr. S.D.N.Y. Case No. 06-12984). Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, it estimated assets of $443,563,020 and debts of $641,100,000. GRANITE BROADCASTING: Equity Holders Offer to Infuse $200 Million ----------------------------------------------------------------- Harbinger Capital Partners Master Fund I, Ltd., GoldenTree Master Fund II, Ltd. and MFC Global Investment Management (U.S.) have offered to infuse $200,000,000 in cash in Reorganized Granite Broadcasting Corporation pursuant to a plan of reorganization term sheet presented by the Preferred Equity Holders to the Debtors. The funds, the Preferred Equity Holders propose, will be used to: * repay and extinguish the Silver Point Credit Facility of $70,000,000, including any accrued but unpaid interest; * repay prepetition accrued and unpaid interest of $20,900,000 under senior notes; * establish an interest reserve for the benefit of reinstated Senior Notes or the New Senior Notes, as the case may be, for $59,200,000, through December 2008; * satisfy allowed administrative claims; * satisfy allowed unsecured debt; * facilitate cash option for holders of Preferred Equity; and * provide the post-emergence operating cash balance. The willingness of the Preferred Equity Holders to invest $200,000,000 in new cash in Reorganized Granite, behind the secured debt, demonstrates what the Preferred Equity Holders have been saying since these cases were filed -- that there is substantial equity value in Granite's estates -- Mark I. Bane, Esq., at Ropes & Gray, LLP, in New York, tells the Court. Bloomberg News says the Preferred Equity Holders would recover 9% of their investment in Granite under their rival plan. Under Granite's Plan, preferred shareholders would share, pro rata, on 2% of the Reorganized company's common stock, Tiffany Kary at Bloomberg relates. The Term Sheet implies a valuation of Granite of approximately $634,000,000, well in excess of the assumed value of roughly $493,000,000 on which the Debtors' Proposed Plan is premised. Proposed Rights Offering Mr. Bane informs the Court that the Term Sheet contemplates a rights offering whereby substantially all holders of allowed Preferred Equity will be entitled to purchase a pro rata share of 100% of the new class A common stock of the Reorganized Debtors in exchange for a total cash contribution of approximately $126,000,000. The Preferred Equity Holders will fully backstop the Rights Offering. In addition, they will infuse an additional $74,000,000 to repay the Silver Point credit facility in consideration of 100% of the new class B common stock of the reorganized Debtors. Moreover, the Preferred Equity Holders will provide a $25,000,000 revolving liquidity facility to the Reorganized Debtors, states Mr. Bane. The Exit Facility will be subordinated to the Senior Notes. The Preferred Equity Holders will have the option to (i) reinstate the outstanding principal balance of Senior Notes or (ii) provide the holders of the Senior Notes with new notes having an economic value equal to the Senior Notes. Implementation of the Term Sheet Mr. Bane discloses that to facilitate the implementation of the Term Sheet, if needed, the Preferred Equity Holders are prepared to provide a replacement DIP facility in the same amount and under the same terms as the existing DIP facility, subject to these exceptions: (a) Certain deadlines in the existing DIP facility will be extended to allow for adequate time to propose and consummate the Preferred Equity Holders' Plan; and (b) The replacement DIP facility, and any fees payable to the lenders, will be subordinate to the Senior Notes and the Silver Point Credit Facility. Minority Noteholders Oppose Alternative Plan Blackport Capital Fund Ltd., Man Mac 3 Limited, Regiment Capital Ltd., Southpaw Credit Opportunity Master Fund LP and Strategic Value Credit Opportunities Master Fund, L.P. -- the Minority Secured Noteholders -- do not believe that the Preferred Equity Holders' alternative proposal is a viable alternative to Granite's Plan as it does not provide the basic framework for a confirmable plan and would leave the Reorganized Debtors in the same position that led them to file for Chapter 11 protection -- with an extremely over-leveraged balance sheet. J. Gregory St. Clair, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in New York, states that the carrying costs and potential refinancing costs associated with the secured debt contained in the Alternative Proposal fails to provide the Debtors with the "fresh start" that is the very foundation of the Chapter 11 process. The overleveraged balance sheet that would result from the Alternative Proposal is simply untenable and would almost certainly result in the Debtors finding themselves forced to file a subsequent bankruptcy proceeding. In its simplest terms, the Debtors have not and will not have the debt capacity to service the $405,000,000 of secured debt that the Alternative Proposal contemplates, asserts Mr. St. Claire. The Alternative Proposal assumes a plan confirmation deadline of June 30, 2007, which is improbable, if not impossible, given the fact that the Preferred Equity Holders have not yet commenced the process of obtaining the necessary regulatory approvals, Mr. St. Claire says. More importantly, the timeline contemplated by the Alternative Proposal does not take into account the vigorous opposition an alternative transaction will face at the hands of the holders of the secured debt, including the Minority Secured Noteholders, Mr. St. Claire contends. Mr. St. Clare notes that the attendant delays and costs caused by the Alternative Plan will result in increased administrative expenses and greatly hinder the Debtors' efforts for a successful reorganization. Mr. St. Claire states that the proposed treatment of the secured notes violates the Bankruptcy Code because: * the Debtors would not be able to reinstate the Secured Notes because the reinstatement would run afoul of various covenants contained in a secured notes indenture, which, among other things, restrict the Debtors' ability to incur new indebtedness. The Alternative Proposal, however, specifically contemplates the incurrence of new debt in the form of a $25,000,000 exit facility; and * The use of cram-up notes contemplated by the Alternative Proposal would require the Debtors to obtain the acceptance of a plan containing the notes from a class of creditors other than the holders of Secured Notes, but as the holders of the Secured Notes are the only creditors of certain of the Debtors and given the significant over-leveraging of the Debtors that would result from that treatment, the chances of the Debtors obtaining the acceptance is effectively nil. About Granite Broadcasting Headquartered in New York, Granite Broadcasting Corp. -- http://www.granitetv.com/-- owns and operates, or provides programming, sales and other services to 23 channels in 11 markets: San Francisco, California; Detroit, Michigan; Buffalo, New York; Fresno, California; Syracuse, New York; Fort Wayne, Indiana; Peoria, Illinois; Duluth, Minnesota-Superior, Wisconsin; Binghamton, New York; Utica, New York and Elmira, New York. The company's channel group includes affiliates of NBC, CBS, ABC, CW and My Network TV, and reaches approximately 6% of all U.S. television households. The company and five of its debtor-affiliates filed for chapter 11 protection on Dec. 11, 2006 (Bankr. S.D.N.Y. Case No. 06-12984). Ira S. Dizengoff, Esq., at Akin, Gump, Strauss, Hauer & Feld, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, it estimated assets of $443,563,020 and debts of $641,100,000. The Debtors' exclusive period to file a plan expires on April 10, 2007. HALCYON LOAN: S&P $15.5 Million Rates Class D Notes at BB --------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Halcyon Loan Investors CLO II Ltd./Halcyon Loan Investors CLO II Inc.'s $379.5 million floating-rate notes due 2021. The preliminary ratings are based on information as of April 16, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The expected commensurate level of credit support in the form of subordination to be provided by the notes junior to the respective classes; -- The cash flow structure, which was subjected to various stresses requested by Standard & Poor's; -- The collateral manager's experience; and -- The transaction's legal structure, including the bankruptcy remoteness of the issuer. Preliminary Ratings Assigned Halcyon Loan Investors CLO II Ltd./ Halcyon Loan Investors CLO II Inc. Class Rating Amount ----- ------ ------------ A-1-S AAA $270,500,000 A-1-J AAA $30,250,000 A-2 AA $23,000,000 B A $18,500,000 C BBB $21,750,000 D BB $15,500,000 Subordinated notes NR $31,500,000 *NR - Not rated. HANCOCK FABRICS: Hires Morris Nichols as Bankruptcy Counsel ----------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware has approved the application of Hancock Fabrics and its debtor- affiliates to employ Morris, Nichols, Arsht & Tunnell LLP, as their bankruptcy counsel, nunc pro tunc to March 21, 2007. The Debtors selected Morris Nichols because of the firm's extensive experience and knowledge in the fields of, among other things, debtor's and creditors' rights, business reorganizations under Chapter 11, and general corporate law, Larry D. Flair, secretary of Debtor Hancock Fabrics Inc., told the Court. In addition, Morris Nichols is familiar with the Debtors' business and affairs as the firm has served as the Debtors' corporate counsel before the Petition Date, Mr. Flair added. As the Debtors' bankruptcy counsel, Morris Nichols is expected to: (a) advise, represent and prepare necessary documents for and on the Debtors' behalf in the areas of DIP financing, corporate law, real estate, employee benefits, business and commercial litigation, tax, debt restructuring, bankruptcy and asset dispositions; (b) prosecute any actions commenced by the Debtors, defend any actions commenced against the Debtors, negotiate litigations where the Debtors are involved and object to claims filed against the Debtors' estates; (c) prepare or coordinate preparation of motions, applications, answers, orders, reports and papers in connection with the administration of the bankruptcy cases; and (d) advise the Debtors with regard to their rights and obligations as debtors-in-possession. The Debtors will pay Morris Nichols according to the firm's current hourly rates: Professional Hourly Rates ------------ ------------ Partners $425 - $625 Associates $220 - $400 Paraprofessionals $175 Case Clerks $100 The Debtors will also reimburse Morris Nichols for necessary expenses the firm incurred or will incur, including travel, photocopying, delivery service, postage, and vendor charges. Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, assured the Court that his firm does not represent any interest adverse to the Debtors and their estates, and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and 6 of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. When the Debtors filed for protection from their creditors, they listed $241,873,900 in total assets and 161,412,000 in total liabilities. The Debtors exclusive period to file a chapter 11 plan expires on July 19, 2007. (Hancock Fabric Bankruptcy News, Issue No. 5, http://bankrupt.com/newsstand/or 215/945-7000). HANCOCK FABRICS: Court Approves Donlin Recano as Claims Agent ------------------------------------------------------------- The Hon. Judge Brendan Linehan Shannon of the United States Bankruptcy Court for the District of Delaware has given final authority to Hancock Fabrics Inc. and its debtor-affiliates to hire Donlin, Recano & Company Inc., as their claims, noticing and balloting agent, effective March 21, 2007, on the terms and conditions set forth in the parties' employment agreement, as modified. All objections to the Debtors' request are deemed withdrawn. Under the Modified DRCI Agreement, the provision on limitation of liability is deleted in its entirety. The Limitation of Liability provision stated that the Debtors agreed not to hold Donlin Recano liable for: -- any expense of any kind or for any lost profits or damages of any kind; and -- any loss of business of other consequential damages even if Donlin has been advised of the possibility of those damages. As reported in the Troubled Company Reporter on April 2, 2007, Judge Shannon granted permission to Debtors to employ, on an interim basis, Donlin, Recano & Company Inc., as claims, noticing and balloting agent. As the Debtors' claims, noticing and balloting agent, Donlin Recano is expected to: (a) prepare and serve required notices in the Debtors' Chapter 11 cases, including, without limitation, notice under Section 341(a) of the Bankruptcy Code, Bar Date Notice, notice of hearings on disclosure statements and confirmation of a plan of reorganization, and other miscellaneous notices; (b) file with the Bankruptcy Court Clerk a declaration of service that includes a copy of the notice involved, an alphabetical list of persons to whom the notice was served and the date and manner of service; (c) comply with applicable federal, state, municipal and local statutes, ordinances, rules, regulations, orders and other requirements; (d) promptly comply with other further conditions and requirements as the Clerk may at any time prescribe; (e) provide claims recordation services and maintain the official claims register; (f) provide balloting and solicitation services, including preparing ballots, producing personalized ballots and tabulating creditor ballots on a daily basis; (g) provide other noticing and related administrative services as may be required from time to time by the Debtors; and (h) assist with, among other things, certain data processing and ministerial administrative functions, including, but not limited to, functions related to the Debtors' schedules of assets and liabilities, statements of financial affairs and master creditor lists; and the processing and reconciliation of claims. The Debtors will pay Donlin Recano for the firm's services pursuant to a fee schedule. The Debtors will also reimburse Donlin Recano for any necessary out-of-pocket expenses. The Debtors will not indemnify Donlin Recano or provide contribution or reimbursement related to indemnification. Louise A. Recano, a principal at Donlin Recano, assured the Court that his firm does not represent any interest adverse to the Debtors and their estates and is a "disinterested person" as the term is defined under Section 101(14) of the Bankruptcy Code. Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and 6 of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. When the Debtors filed for protection from their creditors, they listed $241,873,900 in total assets and 161,412,000 in total liabilities. The Debtors exclusive period to file a chapter 11 plan expires on July 19, 2007. (Hancock Fabric Bankruptcy News, Issue No. 5, http://bankrupt.com/newsstand/or 215/945-7000). HIGHGATE LTC: Case Summary & 21 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Highgate L.T.C. Management, L.L.C. dba Northwoods Rehabilitation and Extend Care Facility at Troy dba Northwoods Rehabilitation and Extend Care Facility at Cortland dba Northwoods Rehabilitation and Extend Care Facility at Hilltop dba Northwoods Rehabilitation and Extend Care Facility at Rosewood Gardens 1805 Providence Avenue Niskayuna, NY 12309 Bankruptcy Case No.: 07-11068 Debtor-affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Highgate Manor Group, LLC 07-11069 Type of Business: The Debtors operates nursing homes. Chapter 11 Petition Date: April 16, 2007 Court: Northern District of New York (Albany) Judge: Robert E. Littlefield, Jr. Debtor's Counsel: J. Ted Donovan, Esq. Finkel Goldstein Rosenbloom & Nash, L.L.P. 26 Broadway, Suite 711 New York, NY 10004 Tel: (212) 344-2929 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million A. Highgate L.T.C. Management, LLC's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ G.E. Capital Corp. $4,000,000 2 Bethesda Metro Center, Suite 600 Bethesda, MD 20814 Long Term Care Risk $795,779 Management 726 Exchange Street, Suite 900 Buffalo, NY 14210 Nyack Manor Nursing Home $700,000 476 Christian Hearld Road Valley Cottage, NY 10989 National Grid $407,679 300 Erie Boulevard West Syracuse, NY 13202 Medline Industries, Inc. $341,395 P.O. Box 92301 Chicago, IL 60675-2301 Atlas Health Care Linen $289,931 Service 414 West Taylor Street Syracuse, NY 13202 St. Clare's Hospital $234,460 McMillan & Associates, L.L.C. $144,897 Quandt's Foodservice $129,377 Distribution Liberty Mutual $128,199 McKeeson Medical-Surgical $125,868 A.M.C.H.-Division of $115,000 Critical Care Northeast Ventilator $111,370 Rentals, Inc. Sufco, Inc. $96,671 Cadwalader, Wickersham & Taft $95,113 Colonial Insurance $88,120 Agency, L.L.C. Northeast Nursing Staff $64,560 Services, L.L.C. Assoc. Geriatric Info $60,175 Network, Inc. N.Y.S.H.F.A. $51,312 Stevens & Lee $48,749 B. Highgate Manor Group, LLC's Largest Unsecured Creditor: Entity Claim Amount ------ ------------ Long Gill Alliance Company $0 680 Long Hill Avenue Shelton, CT 06484-4803 IMPERIAL PETROLEUM: Completes New $15.4 Million Credit Facility --------------------------------------------------------------- Imperial Petroleum Inc. has closed a new credit facility in the amount of $15.4 million. The proceeds of the new facility will be used to: 1) re-finance the company's existing debt; 2) post a new plugging bond in the State of Louisiana for its Coquille Bay operations; 3) close the acquisition of 31 oil wells in Texas; 4) fund the company's ongoing development program; and 5) for general corporate purposes. The company drew down $9.6 million of the $15 million revolving credit facility at closing. "With the completion of the company's new financing, the company can again focus its attention on growth opportunities and exploitation of its existing projects," Jeffrey T. Wilson, president of Imperial, said. "The company closed the purchase of 31 oil wells in Texas as a part of this new financing and expect to begin operations to improve production on those wells very quickly." About Imperial Petroleum Headquartered in Evansville, Indiana, Imperial Petroleum, Inc., (OTCBB:IPMN) -- http://www.iptm.net/-- is an oil and natural gas exploration and production company. The company's balance sheet showed total assets of $4,762,063 and total liabilities of $10,619,001, resulting to total stockholders' deficit of $5,856,938 as of Jan. 31, 2007. INNOPHOS HOLDINGS: Moody's Rates New $66 Million Sr. Notes at B3 ---------------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating to Innophos Holdings, Inc. and a B3 rating to the company's new $66 million senior unsecured notes due 2012. The new notes are being issued by Innophos Holdings, Inc. to refinance $61 million of debt of its subsidiary, Innophos Investments Holdings, Inc. The corporate family rating assignment is being made to transfer the corporate family rating to Innophos Holdings, Inc. from Innophos Investments Holdings, Inc. An SGL-2 speculative grade liquidity rating and a stable rating outlook were also assigned to Innophos. Innophos Holdings, Inc. Ratings assigned: * Corporate family rating -- B1 * Probability of default rating -- B1 * Speculative grade liquidity rating -- SGL-2 * $66 million senior unsecured notes due 2012 -- B3, LGD6, 93% Innophos, Inc. Ratings affirmed: * $50 million guaranteed senior secured revolver due 2009 -- Ba1, LGD2, 18% * $220 million guaranteed senior secured term loan B due 2010 * -- Ba1, LGD2, 18% * $190 million 8.875% guaranteed senior subordinated notes due 2014 -- B2, LGD5, 71% Innophos' B1 corporate family rating reflects Moody's concerns about the company's high (albeit reduced) leverage and modest size; which are partially offset by high and stable EBITDA margins and strong cash flow for its rating category. T he rating also incorporates the potential for Mexican tax liabilities. However, we are somewhat comforted by the fact that the Mexican Tax Audit and Assessment Unit of the National Waters Commission has not requested payment or security in connection with the revoked Salt Water Claims resolutions in August 2005, and the recent favorable New York court ruling affirming a partial summary judgment granted in 2005 to Innophos against Rhodia, S.A. and affiliates regarding Innophos' assertion it was entitled to be fully indemnified for claims asserted by the CNA and that Rhodia is responsible for required security. The stable outlook reflects Moody's expectation that the company will continue to modestly grow its sales and apply free cash flow towards debt reduction. Currently, there is little upside to the ratings given the firm's modest size, significant leverage and ongoing litigation related to Mexican tax claims. The ratings could come under pressure if the company were unable to continue to generate meaningful operating cash flow (in excess of $35-$40 million p.a.) or if developments in the Mexican tax claims case (and related litigation against Rhodia) resulted in Innophos being responsible for meaningful cash payments. The speculative grade liquidity rating of SGL-2 reflects the likelihood that Innophos will maintain adequate cash balances, albeit below recent historical levels prior to the repayment of debt and that the company will continue to generate positive free cash flow, have access to its unused (except for letters of credit) revolving credit facility and have good flexibility under its financial covenants. Innophos Holdings, Inc. is the parent holding company of Innophos Investments Holdings, Inc., which is also a holding company that owns 100% of Innophos, Inc. Innophos, Inc. (including its subsidiaries) is the largest North American manufacturer of specialty phosphate salts, acids and related products serving a diverse range of customers across multiple applications, geographies and channels. Innophos offers a broad suite of products used in a wide variety of food and beverage, consumer products, pharmaceutical and industrial applications. Headquartered in Cranbury, New Jersey, Innophos has plant operations in the US, Canada and Mexico. Its revenues for the 12 months ended Dec. 31, 2006 were roughly $542 million. Innophos publicly listed its shares in November 2006. ISAAC BIRMINGHAM: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Isaac Henry Birmingham 14406 Woodmore Oaks Court Bowie, MD 20721 Bankruptcy Case No.: 07-13511 Type of Business: The Debtor filed for Chapter 11 protection on January 30, 2007 (Bankr. D. Md. Case No. 07-10942). Chapter 11 Petition Date: April 17, 2007 Court: District of Maryland (Greenbelt) Debtor's Counsel: Edward V. Hanlon, Esq. 5510 Cherrywood Lane, Suite G Greenbelt, MD 20770 Tel: (301) 345-8008 Fax: (301) 345-7708 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. JACOBS FINANCIAL: Feb. 28 Balance Sheet Upside-Down by $7 Million ----------------------------------------------------------------- Jacobs Financial Group Inc. reported a net loss of $240,285 on total revenues of $207,236 for the third quarter ended Feb. 28. 2007, compared with a net loss of $485,916 on total revenues of $91,451 for the same period ended Feb. 28, 2006. The net loss in the third quarter ended Feb. 28, 2007, included a gain on extinguishment of debt of $42,445 related to the waiver of accrued interest on professional fees incurred in the company's 2002 fiscal year in connection with litigation resulting from a failed business combination transaction. Quarterly revenues from the company's investment management segment were $63,748 and $53,026 for the three-month periods ended Feb. 28, 2007, and 2006, respectively. Quarterly revenues from the company's surety insurance segment increased to $143,488 in the current quarter from $37,803 in the corresponding period ended Feb. 28, 2006. Net Loss from operations decreased to $257,585 in the current quarter, from $319,800 in the prior period quarter, mainly resulting from the increase in revenues. Interest expense for the three-month period ended Feb. 28, 2007, decreased to $25,183 from interest expense of $166,116 for the corresponding period ended Feb. 28, 2006, mainly attributable to the conversion of previous indebtedness of the company, incurred to fund ongoing operations, to Series B preferred stock. At Feb. 28, 2007, the company's balance sheet showed $4,314,927 in total assets, $1,879,117 in total liabilities, and $9,504,713 in total mandatorily redeemable preferred stock, resulting in a $7,068,903 total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d51 Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 19, 2006, Malin, Bergquist & Company LLP expressed substantial doubt about Jacobs Financial Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended May 31, 2006. The auditing firm pointed to the company's significant net working capital deficit and operating losses. Headquartered in Charleston, W.Va., Jacobs Financial Group Inc. (OTC BB: JFGI.OB) -- through its subsidiaries, provides investment advising, investment management, surety business, security brokerage, and related services. Subsidiaries include Jacobs & Co., which provides investment advisory services; FS Investments, a holding company organized to develop surety business through the formation and acquisition of companies engaged in the issuance of surety bonds, and FS Investment's wholly-owned subsidiary Triangle Surety Agency, which places surety bonds with insurance companies. Subsidiary Crystal Mountain Water holds mineral property in Arkansas. JONG LEE: Case Summary & 13 Largest Unsecured Creditors ------------------------------------------------------- Debtors: Jong Yun Lee Eun Soo Lee 13036 Red Admiral Place Fairfax, VA 22033 Bankruptcy Case No.: 07-10943 Chapter 11 Petition Date: April 17, 2007 Court: Eastern District of Virginia (Alexandria) Debtors' Counsel: John L. Lilly, Jr., Esq. 10195 Main Street, Suite I Fairfax, VA 22031 Tel: (571) 432-0300 Fax: (571) 432-0301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' 13 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Nelnet Lns $19,491 P.O. Box 1649 Denver, CO 80201 Tim Jeon $10,000 7617 Little River Turnpike, Suite 520 Annandale, VA 22003 Capital One Bank $7,974 11013 West Broad Street Glen Allen, VA 23060 Caf $5,256 Discover Financial $5,050 Beneficial/Household Finance $4,610 Droper & Kramer $4,147 Branch B & T $4,913 Capital One Bank $5,794 U.S. Bank/na Nd $5,504 Briarwood Condo Association $880 Lillian Court Condo Association $307 First USA, N.A. $244 LIFECARE HOLDINGS: Posts $40.8 Mil. Net Loss in Full Year 2006 -------------------------------------------------------------- LifeCare Holdings Inc. reported a net loss of $40.8 million, as compared with a net loss of $82.7 million for the year ended Dec. 31, 2005. The net loss for the year ended Dec. 31, 2006, was primarily the result of goodwill impairment charges of $43.6 million. For the year ended Dec. 31, 2005, the reported net loss of $82.7 million was primarily the result of stock compensation expense of $54.5 million recorded in connection with the Transactions and impairment charges of $74.2 million associated with goodwill and identifiable intangible and long- lived assets. For the year ended Dec. 31, 2006, the company had net patient service revenues during the year ended Dec. 31, 2006, of $325.9 million, as compared with $346.3 million for the same period in 2005, for a decrease of $20.4 million. Net patient service revenue from the company's three New Orleans hospitals prior to their closure during the year ended Dec. 31, 2005, was $29.5 million. Patient days in 2006 were 226,863, as compared with 242,101 for 2005, for a decrease of 15,238. The company's New Orleans hospitals had 20,861 patient days during 2005. Total expenses decreased by $72.7 million to $363 million for the year ended Dec. 31, 2006, as compared with $435.7 million for the same period in 2005. In 2006, the company recorded income tax expense of $3.7 million, which represented an annual effective rate of about 57.2%, excluding the impact of the $43.6 million impairment charge, as compared with an income tax benefit of $6.8 million for 2005, which represented an effective rate of 44.3%, excluding the impact of the $74.2 million impairment charges. The company's balance sheet as of Dec. 31, 2006, showed total assets valued at $536.4 million and total liabilities of $485.9 million, resulting to total stockholders' equity of $50.5 million. Overview of Year 2006 During July 2006, the company closed a 40-bed hospital within a hospital in Edinburgh, Texas. It opened a 24-bed satellite hospital within a hospital in Shreveport, Louisiana during August 2006 and a 41-bed satellite hospital within a hospital in Pittsburgh, Pennsylvania during September 2006. The company expanded an existing hospital in Shreveport, Louisiana by seven beds in November 2006, and opened a satellite 32-bed freestanding hospital in McAllen, Texas during December 2006. The licensed beds at the Shreveport locations were transferred internally among total licensed beds in the Shreveport market; therefore, there was no change in total beds in Shreveport. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d42 About LifeCare Holdings LifeCare Holdings Inc. -- http://www.lifecare-hospitals.com/-- develops and acquires hospitals that operate as long-term acute care hospitals in the U.S. As of Dec. 31, 2006, the company operated 20 hospitals located in nine states, consisting of 12 "hospital within a hospital" long-term acute care facilities and eight freestanding facilities. The company has a total of 926 licensed beds and employs about 2,700 full-time and part-time people. LifeCare is wholly owned by LCI Holdco LLC, which is a wholly owned subsidiary of LCI Holding Company Inc., both of which are privately owned. There is no public trading market for LifeCare's equity securities. * * * LifeCare Holdings Inc. carries Moody's Investors Service's B3 corporate family rating and B1 senior secured credit facilities rating. The ratings outlook is negative. LifeCare's senior subordinated notes have Moody's Caa2 rating. MAJESTIC STAR: Dec. 31 Balance Sheet Upside-Down by 139.6 Million ----------------------------------------------------------------- Majestic Star Casino LLC's balance sheet as of Dec. 31, 2006, showed total members' deficit of $139.6 million, resulting from total assets of $506.4 million and total liabilities of $646 million. The company's December 31 balance sheet also showed working capital deficit with total current assets of $40.1 million and total current liabilities of $49 million. For the year ended Dec. 31, 2006, the company posted a net loss of $14.3 million on gross revenues of $409.3 million, as compared with a net loss of $5.3 million on gross revenues of $307.6 million for the year ended Dec. 31, 2005. The Majestic Properties contributed $102.8 million of the increase, with all of the increase resulting from the Trump Indiana Acquisition. Fitzgeralds Tunica added $1.1 million to gross revenues, which was offset by a decrease of $2.2 million at Fitzgeralds Black Hawk. In the year ended Dec. 31, 2006, as compared with last year, operating expenses increased $75.9 million, with $77.9 million of this increase attributable to the Majestic Properties and specifically the Trump Indiana Acquisition. Offsetting the increased operating expenses from the Majestic Properties were lower expenses at Fitzgeralds Black Hawk and within our corporate group, as one-time charges occurred in 2005. The company did not pay any cash dividends during the past three years, and has no current plan to pay any cash dividends in the near term. It is restricted in its ability to pay dividends under various covenants of its debt agreements. If the company were to elect to take these distributions, the company would be required to pay $4.5 million, in addition to what would be allowable for distribution in 2007 under the Manager Agreement. Outstanding Debt The company has significant debt outstanding, including $45.7 million drawn on its Senior Secured Credit Facility, $300 million of Senior Secured Notes, $200 million of Senior Notes and $200,000 of capital leases and other debt. Including the $63.5 million of Discount Notes, net of original issue discount, the company and its parent, Majestic Holdco, issued $303.5 million of notes in conjunction with the Trump Indiana Acquisition. The annual cash interest expense on the debt used to acquire Trump Indiana is $23.3 million. Budget for 2007 In 2007, in addition to servicing the Company's significant debt obligations, the company is budgeting to spend $39.8 million on property improvements, including completing the remodel of the remaining Fitzgeralds Tunica hotel rooms and remodeling the Fitzgeralds Tunica casino floor, adding a high limit pit and poker room, and purchasing equipment, which primarily consists of slot machines. The company is also engaged in the Fitzgeralds Black Hawk expansion and re-building the Rohling Inn, which is anticipated to cost $16.7 million in 2007 and $30.9 million in total. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d44 About Majestic Star Majestic Star Casino LLC -- http://www.majesticstar.com/-- directly and indirectly owns and operates riverboat casinos in Gary, Indiana, Tunica, Mississippi, and Black Hawk, Colorado. Majestic Star Holdco LLC, owns 100% of Majestic Star Casino LLC. Mr. Barden indirectly holds 100% of the company's membership interests. MATRITECH: Postpones Notes Principal & Interest Payments to May 13 ------------------------------------------------------------------ Matritech agreed with the holders of more than 90% of the outstanding principal value of its Series A 15% Secured Convertible Promissory Notes to defer these holders' receipt of principal and interest payments scheduled for April 13, 2007 to May 13, 2007. Matritech expects to make the payments on May 13, 2007 in shares of its common stock, consistent with its past practice. Matritech Inc. (AMEX: MZT) is a biotechnology company that develops, manufactures, markets, distributes and licenses cancer diagnostic technologies and products. It is focused primarily on the early detection of various types of cancer because treatment options may be greater and/or more successful and treatment costs may be lower when tumors are detected in their early stages. The company's revenues are derived primarily from product sales. As of Dec. 31, 2006, the company listed total assets of $5.5 million, total liabilities of $8.3 million, and commitments and contingencies of $208,624, resulting to total stockholders' deficit $2.9 million. Going Concern PricewaterhouseCoopers LLP raised substantial doubt about Matritech Inc.'s ability to continue as a going concern citing recurring losses and negative cash flows from operations after auditing the company's financial statements as of Dec. 31, 2006, and 2005. MEDWAVE INC: Posts $1.2 Million Net Loss in Quarter Ended Dec. 31 ----------------------------------------------------------------- Medwave Inc. reported a net loss of $1,235,768 on net sales of $212,684 for the first quarter ended Dec. 31, 2006, compared with a net loss of $998,708 on net sales of $247,586 for the first quarter ended Dec. 31, 2005. The decrease in revenue was due to the discontinuance of the Vasotrac(R) monitoring system, due to obsolete parts and aging technologies. The Vasotrac(R) will be replaced by FusionTM. Total operating expenses increased to $1,491,505, compared to $1,040,276 during the prior period quarter, mainly attributable to increases in cost of sales and production, sales and marketing expenses, and general and administrative expenses, partly offset by a decrease in research and development expenses. Cost of sales and production increased to $297,346 in the current quarter compared to $166,471 in the quarter ended Dec. 31, 2005. The majority of the 2006 increase reflects an increase in depreciation expense due to tooling purchases and production scrap expenses from the discontinuation of the Vasotrax product line. In addition, $70,000 in other obsolete inventory was written off during the quarter. Sales and marketing expenses increased $33,679. The increase primarily relates to an increase in advertising services due to the hiring of an outside marketing firm and increased expenses for trade shows during the quarter. General and Administrative increased $89,797, mainly resulting from to severance payments due to the closing of the Danvers, Mass. office and associated moving expenses. Interest income was $43,053 and $41,568 for the quarters ended Dec. 31, 2006 and 2005, respectively. At Dec. 31, 2006, the company's balance sheet showed $4,423,452 in total assets, $872,781 in total liabilities, and $3,550,671 in total stockholders' equity. Additionally, accumulated deficit stood at $35,569,985. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1d52 Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 22, 2007, Carlin, Charron & Rosen LLP, in Westborough, Mass., expressed substantial doubt about Medwave Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Sept. 30, 2006, and 2005. The auditing firm pointed to the company's recurring net losses and accumulated deficit of approximately $34,000,000 at Sept. 30, 2006. Headquartered in Arden Hills, Minn., Medwave,Inc. (Nasdaq: MDWV) -- http://www.mdwv.com/-- develops, manufacturers and distributes sensor-based non-invasive blood pressure solutions. ML-CFC COMMERCIAL: Moody's Puts Low-B Ratings on Six Certificates ----------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to securities issued by ML-CFC Commercial Mortgage Loan Trust 2007-6, a fixed rate commercial loan pool securitization. The provisional ratings issued on March 30, 2007 have been replaced with these definitive ratings: Issuer: ML-CFC Commercial Mortgage Trust 2007-6 - Class A-1, $27,682,000, rated Aaa - Class A-2, $170,430,000, rated Aaa - Class A-3, $60,689,000, rated Aaa - Class A-4, $728,987,000, rated Aaa - Class A-1A, $364,360,000, rated Aaa - Class A-M, $214,593,000, rated Aaa - Class AJ, $107,403,000, rated Aaa - Class AJ-FL, $75,000,000, rated Aaa - Class A-2FL, $150,000,000, rated Aaa - Class B, $42,919,000, rated Aa2 - Class C, $16,094,000, rated Aa3 - Class D, $34,872,000, rated A2 - Class X, $2,145,926,359*, rated Aaa - Class E, $18,776,000, rated A3 - Class F, $24,142,000, rated Baa1 - Class G, $24,142,000, rated Baa2 - Class H, $26,824,000, rated Baa3 - Class J, $5,365,000, rated Ba1 - Class K, $5,365,000, rated Ba2 - Class L, $5,364,000, rated Ba3 - Class M, $5,365,000, rated B1 - Class N, $5,365,000, rated B2 - Class P, $5,365,000, rated B3 * Approximate notional amount Moody's has withdrawn the provisional ratings of these class of certificates: - Class AM-FL, $0, WR - Class A-4FL, $0, WR - Class Y, $0, WR - Class Z, $0, WR MODAVOX INC: Earns $216,699 in Third Quarter Ended November 30 -------------------------------------------------------------- Modavox Inc. reported net income of $216,699 for the third quarter ended Nov. 30, 2006, compared with a net loss of $185,614 for the same period ended Nov. 30, 2005. For the quarter ending Nov. 30, 2006, revenues increased to $868,406 compared to revenues of $509,923 for the quarter ending Nov. 30, 2005. Revenues for the quarter ended Nov. 30, 2006, included $314,919 from the Interactive Media Division and $553,487 from the Broadcast Media Division while all revenues in the November 2005 quarter were generated though the Broadcast Media Division. At Nov. 30, 2006, the company's balance sheet showed $3,835,140 in total assets, $716,570 in total liabilities, and $3,118,570 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d40 Going Concern Doubt As reported in the Troubled Company Reporter on June 20, 2006, Epstein Weber & Conover P.L.C. in Scottsdale, Ariz., raised substantial doubt about Modavox Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Feb. 28, 2006. The auditor pointed to the company's recurring losses from operations, and working capital deficit. About Modavox Inc Modavox Inc. (OTC BB: MDVX.OB) -- http://www.modavox.com/-- a pioneer in Internet broadcasting, producing and syndicating online audio and video, offers innovative, effective and comprehensive online tools for reaching targeted niche communities worldwide. Through patented Modavox technology, Modavox delivers content straight to desktops and Internet-enabled devices. Modavox provides managed access for live and on-demand Internet Radio Broadcasting, E-learning and Rich Media Advertising. MUZAK HOLDINGS: Plans to Merge with DMX --------------------------------------- Muzak LLC and DMX Inc. are contemplating a future consolidation. This combination would be contingent on a sale of the combined entity to a third party buyer after clearance by federal regulators. Accordingly, the companies have submitted a Hart-Scott-Rodino filing seeking clearance for the transaction. In the interim, Muzak and DMX will remain independent companies. About Muzak Muzak LLC -- http://www.muzak.com/-- creates and designs custom sound systems. MUZAK HOLDINGS: DMX Merger Cues S&P's Positive CreditWatch ---------------------------------------------------------- Standard & Poor's Ratings Services placed all of its ratings on Muzak Holdings LLC and its subsidiary, Muzak LLC, including the 'CCC+' corporate credit ratings, on CreditWatch with positive implications. The companies are analyzed on a consolidated basis. "The positive CreditWatch listing follows the company's announcement that it is contemplating a combination with competitor DMX Inc.," said Standard & Poor's credit analyst Tulip Lim. The merger is subject to clearance by the U.S. Department of Justice. The combination of the two companies would be contingent on a sale of the combined entity to an unidentified third-party buyer. The positive CreditWatch listing indicates the possibility of upward rating movement if Muzak and DMX are able to sell the combined entity, operate more efficiently, and maintain adequate liquidity than on a stand-alone basis. The Fort Mill, South Carolina-based provider of business music services had about $464 million in consolidated debt and $227.8 million in debt-like preferred stock at Dec. 31, 2006. The CreditWatch listing will be resolved pending a review of the combined entity. Termination or delays in completing the transaction could result in an affirmation of the rating. NETWORK SOLUTIONS: S&P Revises Recovery Rating on Upsized Loan -------------------------------------------------------------- Standard & Poor's Ratings Services revised its recovering rating on the first-lien credit facilities of Network Solutions LLC (B/Stable/--). The bank loan rating is still 'B', at the same level as the corporate credit rating on the company, but the recovery rating has been revised to '3' from '2'. The '3' recovery rating indicates expectation of meaningful (50%-80%) recovery of principal in the event of a payment default. Network Solutions upsized its first-lien term loan, to $383 million from $340 million, reducing the recovery prospects for all first-lien debtholders. The first-lien credit facilities now consist of a $25 million revolving credit facility due 2013 and a $383 million term loan due 2014. Ratings List Network Solutions LLC Corporate Credit Rating B/Stable/-- Rating Lowered Network Solutions LLC To From -- ---- Senior Secured First-Lien Credit Facilities B B Recovery Rating 3 2 NEW CENTURY: Taps O'Melveny & Myers as General Bankruptcy Counsel ----------------------------------------------------------------- New Century Financial Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for authority to employ O'Melveny & Myers as their general bankruptcy counsel effective as of their bankruptcy filing. The Debtors need bankruptcy lawyers to prosecute their Chapter 11 cases. Monika L. McCarthy, New Century's senior vice president and assistant general counsel, tells the Honorable Kevin J. Carey that O'Melveny & Myers LLP is well qualified to represent the Debtors. For several years, O'Melveny & Myers, Ms. McCarthy relates, has represented the Debtors as their general outside corporate counsel, including securities and mergers and acquisition work as well as employee benefits, outsourcing and other transactional matters. Prior to their bankruptcy filing, O'Melveny & Myers commenced assisting and representing the Debtors in connection with restructuring matters and their potential bankruptcy filing. As a result, Ms. McCarthy says, O'Melveny & Myers has been actively engaged in representing the Debtors in considering various possible strategic transactions and ultimately preparing for the Chapter 11 cases. The firm is also representing the Debtors in the pending government investigations. Through its representation of the Debtors, O'Melveny & Myers has acquired detailed knowledge of the Debtors' businesses, financial affairs and capital structure, as well as the legal issues that are likely to arise in the Chapter 11 cases, Ms. McCarthy says. In addition to restructuring, reorganization and bankruptcy expertise, attorneys at O'Melveny & Myers provide legal services in virtually every major practice area, including corporate and securities, litigation, intellectual property, banking, tax, employee benefits, real estate, government regulation and international trade. O'Melveny & Myers has served as counsel to debtors and creditors in various large and complex bankruptcy cases, including prior experience representing Wherehouse Entertainment, Inc., M T S, Inc. dba Tower Records, At Home Corporation, SeraCare Life Sciences, Inc., and Advanced Marketing Services, Inc. As lead counsel, O'Melveny & Myers will: (a) advise the Debtors regarding matters of bankruptcy law in connection with their Chapter 11 cases; (b) advise the Debtors of the requirements of the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, applicable local bankruptcy rules pertaining to the administration of their cases and U.S. Trustee Guidelines related to the daily operation of their business and the administration of the estates; (c) prepare motions, applications, answers, proposed orders, reports and papers in connection with the administration of the estates; (d) negotiate with creditors, prepare and seek confirmation of a Chapter 11 plan and related documents, and assist the Debtors with implementation of the plan; (e) assist the Debtors in the analysis, negotiation and disposition of certain estate assets for the benefit of the estates and their creditors; (f) advise the Debtors regarding bankruptcy related litigation and employment matters; (g) represent the Debtors in connection with their pending government investigation; (h) serve as the Debtors' general outside corporate counsel and assist advise and represent the Debtors in general corporate, and securities law matters, Securities and Exchange Commission compliance matters, corporate governance matters, contract review and preparation of corporate documentation, and transactional and corporate law assistance with respect to asset dispositions and negotiation; (i) represent the Debtors in connection with employee benefits and outsourcing matters; and (j) render other necessary advice and services as the Debtors may require in connection with their cases. The Debtors will pay O'Melveny & Myers for its services in accordance with the firm's hourly rates, and reimburse the firm for necessary and reasonable expenses. The firm's attorneys and personnel who are expected to be principally responsible for the Debtors' cases and their hourly rates are: Ben Logan $795 Suzzanne Uhland $725 Victoria Newmark $555 Brian Metcalf $540 Emily Culler $480 Prior to their Bankruptcy Filing, the Debtors paid the firm $2,500,000 for fees and expenses for advice and legal services rendered in connection with restructuring advice and the preparation and commencement of the Debtors' cases, as well as to serve as a retainer, Ms. McCarthy informs the Court. After deducting fees and expenses previously billed -- and paid -- for the prepetition legal services plus estimated unbilled prepetition amounts, roughly $1,900,000 remains as a retainer, which will be available to be applied to postpetition services. 1During the 90 days prior to their bankruptcy filing, the Debtors paid $5,900,000 to the firm, Suzzanne Uhland, Esq., a partner at O'Melveny & Myers, disclosed. Ms. Uhland attests that her firm is a disinterested person who does not hold or represent an interest adverse to the estate. Moreover, the firm does not have any connection with the Debtors, their creditors or any other interested party in the case. About New Century Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/ -- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a chapter 11 plan expires on July 31, 2007. (New Century Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NEW CENTURY: Selects Richards Layton as Local Counsel ----------------------------------------------------- Pursuant to Rule 83.5 of the Local Rules of the United States District Court for the District of Delaware, New Century Financial Corporation and its debtor-affiliates are required to retain Delaware counsel. In this regard, the Debtors seek permission from the U.S. Bankruptcy Court for the District of Delaware to employ Richards Layton & Finger, P.A., as their local counsel, nunc pro tunc to their bankruptcy filing. The Debtors selected Richards Layton as their co-counsel because of the firm's extensive experience and knowledge in the field of debtors' and creditors' rights, business reorganizations and liquidations under Chapter 11 of the Bankruptcy Code, and because of its expertise, experience, and knowledge in practicing before the Delaware bankruptcy court, its proximity to the Court and its ability to respond quickly to emergency hearings and other emergency matters in the Court, Monika L. McCarthy, New Century's senior vice president and assistant general counsel, tells the Honorable Kevin J. Carey. Since March 8, 2007, Richards Layton has rendered legal services and advice to the Debtors, Ms. McCarthy relates. During the course of this representation, Richards Layton has acquired knowledge of the Debtors' business, financial affairs and capital structure. As local counsel, Richards Layton will: (a) advise the Debtors of their rights, powers and duties as debtors and debtors-in-possession; (b) take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on the Debtors' behalf, the defense of any actions commenced against the Debtors, the negotiation of disputes in which the Debtors are involved, and the preparation of objections to claims filed against the Debtors' estates; (c) prepare on behalf of the Debtors all necessary motions, applications, answers, orders, reports and papers in connection with the administration of the Debtors' estates; and (d) perform all other necessary legal services in connection with the Chapter 11 cases. The Debtors will pay Richards Layton for its services in accordance with the firm's hourly rates, and reimburse the firm for necessary and reasonable expenses. The firm's attorneys and personnel who are expected to be principally responsible for the Debtors' cases and their hourly rates are: Mark D. Collins, Esq. $520 Michael J. Merchant, Esq. $390 Paul N. Heath, Esq. $350 Marcos Ramos, Esq. $315 Chun I. Jang, Esq. $225 Christopher M. Samis, Esq. $210 Aja E. McDowell $165 Ms. McCarthy relates that prior to their bankruptcy filing, the Debtors paid Richards Layton a $275,000 retainer in connection with and in contemplation of the Debtors' Chapter 11 filing. The Debtors ask the Court to deem the retainer paid to RL&F and not expended for prepetition services and disbursements as an evergreen retainer to be held by the firm as security throughout the Chapter 11 cases until the firm's fees and expenses are awarded by final order and paid. The general security retainer is appropriate, Ms. McCarthy tells the Court. These types of retainer agreements reflect normal business terms in the marketplace, Ms. McCarthy says, citing In re Insilco Technologies, Inc., 291 B.R. 628, 634 (Bankr. D. Del. 2003). Moreover, the Debtors and the firm are sophisticated business entities that have negotiated the retainer at arm's length. Although the Debtors' postpetition financing arrangement provides a carve-out for professional claims, there is no assurance that the Carve-Out will be sufficient to pay the claims of all professionals. The Retainer secures Richards Layton's fees and expenses for work performed in connection with the Chapter 11 cases. Michael J. Merchant, Esq., a director at Richards Layton, assures the Court that the firm's directors and associates do not have any connection with or any interest adverse to the Debtors, their creditors, or any other party-in-interest. About New Century Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/ -- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a chapter 11 plan expires on July 31, 2007. (New Century Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NEWCOMM WIRELESS: Exclusive Plan-Filing Period Extended to Aug. 27 ------------------------------------------------------------------ The United States Bankruptcy Court for the District of Puerto Rico further extended NewComm Wireless Services Inc.'s exclusive periods to: a. file a plan of reorganization through and including Aug. 27, 2007. b. solicit acceptances of that plan through Oct. 26, 2007. The Debtor tells the Court that it had been previously given permission to sell its assets to PRWireless, Inc. Although the sale was approved pursuant to a Sale Order, it has yet to close. The Debtor says that it needs to receive authorization from the Federal Communications Commission to transfer its licenses to PRW. In addition to devoting substantial resources to the marketing and sale process, the Debtor discloses that in the weeks after its bankruptcy filing, it has worked to: (i) commence the build-out and enhancement of its network to improve service to its subscribers and to introduce new services; (ii) stabilize its business operations; (iii) respond to inquiries from subscribers and creditors regarding its chapter 11 filing; and (iv) evaluate its many executory contracts. The Debtor further says that along with its advisers, it has undertaken to review the myriad claims filed in its case and is in the process of preparing its first omnibus objection to claims. Furthermore, the deadline for Governmental Units to file claims in this case will not pass until after the Current Plan Deadline. The Debtor discloses that it has recently commenced a litigation against a group of entities the Debtor has referred to in other papers in this case as the "Telefonica Group" seeking to, among other things, subordinate and recharacterize tens of millions of dollars of claims. No answer or other response has been received to date in that case. The Debtor contends that absent further review and analysis of the validity, amount and priority of those claims that have been asserted to date against the Debtor's estate, as well as those that may be filed, the Debtor believes that it will be difficult to file a disclosure statement that contains "adequate information" to satisfy its obligations under Section 1125 of the Bankruptcy Code. About NewComm Wireless Based in Guaynabo, Puerto Rico, NewComm Wireless Services Inc. is a PCS company that provides wireless service to the Puerto Rico market. The company is a joint venture between ClearComm, L.P. and Telefonica Larga Distancia. The company filed for chapter 11 protection on Nov. 28, 2006 (Bankr. D. P.R. Case No. 06-04755). Carmen D. Conde Torres, Esq., at C. Conde & Assoc. and Peter D. Wolfston, Esq., at Sonnenschein Nath & Rosenthal LLP represent the Debtor in its restructuring efforts. Mark J. Wolfson, Esq. at Foley & Lardner LLP and Sergio A. Ramirez de Arellano, Esq., at Sergio Ramirez de Arrelano Law Office represent the Official Committee of Unsecured Creditors. In its schedules, the Debtor disclosed total assets of $111,652,190 and total debts of $190,695,559 NEXTCARD CREDIT: Failure to Pay Balance Cues S&P's 'D' Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class C and D asset-backed notes issued by NextCard Credit Card Master Note Trust's series 2001-1 to 'D'. The defaults of the notes reflect the transaction's failure to pay the outstanding principal balance of the class C and D notes in full on its legal final maturity date of April 16, 2007. An elevated and sustained charge-off rate has caused write-downs of $32,011,011 and $24,500,000 on the class C and class D notes, respectively, which were not reimbursed on the bond's final maturity date. Based on the transaction's defined finance charge and principal allocation percentage, these notes are not entitled to receive any trust collection payments once the invested amounts have been written down to zero. Amounts in the spread account are used to cover monthly interest shortfalls. Funds in the spread account can also be used to make any principal payments owed to the noteholders on the legal final maturity date. The spread account draws have been used to cover shortfalls in monthly interest payments to the noteholders. The remaining balance of the spread account, however, is insufficient to fully reimburse the noteholders' previous written-down principal balances. Ratings Lowered NextCard Credit Card Master Note Trust Asset-backed notes series 2001-1 Rating ------ Class To From ----- -- ---- C D CCC- D D CC NORTH AMERICAN: DIP Financing Maturity Date Extended to January 8 ----------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania extended, until Jan. 8, 2008, the maturity date of the Debtor-In-Possession Credit Agreement entered into by North America Refractories Company and its debtor-affiliates, and their DIP lender, JAN 2002 Funding, LLC. The Debtors determined, during their bankruptcy filing, that a $20,000,000 line of credit was necessary in order meet their operating expenses and continue operating their businesses during the bankruptcy case, with the ultimate goal of rehabilitating their business and proposing a plan of reorganization. NARCO's predecessor, Honeywell International Inc., agreed to provide the $20 million loan through its affiliate, the DIP Lender. The Debtors believe that the extension will provide them with adequate resources to meet all post-petition obligations as and when they become due. About North American Refractories Based in Pittsburgh, Pennsylvania, North American Refractories Company was engaged in the manufacture and non-retail sale of refractory bricks and related products. The company and its affiliates sought chapter 11 protection on January 4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump in the domestic economy and encountering an overwhelming number of claims from individuals asserting injuries or illnesses caused by exposure to products containing asbestos containing it manufactured. James J. Restivo, Jr., Esq., David Ziegler, Esq., and Brian T. Himmel, Esq., at Reed Smith LLP represents the Debtor. No Official Committee of Unsecured Creditors has been appointed in this case. When the Debtor filed for protection from its creditors, it listed $27,559,000,000 in assets and $18,634,000,000 in debts. Plan Update On Jan. 27, 2006, the Debtors filed their Combined Disclosure Statement accompanying the Amended Plan. On Jan. 30, 2006, the Court entered an order approving the Combined Disclosure Statement. The confirmation hearing on the Amended Plan commenced on June 5, 2006, was continued to October 26-27, 2006, continued again to Nov. 17, 2006, and continued again to March 16, 2007. Classes that are impaired have voted to accept the Amended Plan by more than 50% in number and 2/3 in amount. With respect to the NARCO Asbestos Trust, the Amended Plan has been accepted by 95.88% of the voters holding 93.15% of the claims. NORTH AMERICAN: Court Extends Plan Solicitation Period to June 30 ----------------------------------------------------------------- The Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania extended, until June 30, 2007, the solicitation period wherein North America Refractories Company and its debtor-affiliates can solicit acceptances of their plan of reorganization. The Debtors believe that it would be in their best interests to align the NARCO Solicitation Period with Global Industrial Technologies, Inc.'s Solicitation Period, which is on June 30, 2007, pending an approval. GIT and its debtor-affiliates are refractory manufacturers operating under the names Harbison- Walker and A.P. Green (Bankr. W.D. Pa. Case No. 02-021626). The Debtors claim that their cases are related to GIT's Chapter 11 proceedings. The Debtors want to align their respective schedules with GIT so as to permit a single coordinated effort to obtain confirmation of the plans in each case, and as a "precautionary measure" in order to protect their reorganization. About NARCO Based in Pittsburgh, Pennsylvania, North American Refractories Company was engaged in the manufacture and non- retail sale of refractory bricks and related products. The company and its affiliates sought chapter 11 protection on January 4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump in the domestic economy and encountering an overwhelming number of claims from individuals asserting injuries or illnesses caused by exposure to products containing asbestos containing it manufactured. James J. Restivo, Jr., Esq., David Ziegler, Esq., and Brian T. Himmel, Esq., at Reed Smith LLP represents the Debtor. No Official Committee of Unsecured Creditors has been appointed in this case. When the Debtor filed for protection from its creditors, it listed $27,559,000,000 in assets and $18,634,000,000 in debts. Plan Update On Jan. 27, 2006, the Debtors filed their Combined Disclosure Statement accompanying the Amended Plan. On Jan. 30, 2006, the Court entered an order approving the Combined Disclosure Statement. The confirmation hearing on the Amended Plan commenced on June 5, 2006, was continued to October 26-27, 2006, continued again to Nov. 17, 2006, and continued again to March 16, 2007. Classes that are impaired have voted to accept the Amended Plan by more than 50% in number and 2/3 in amount. With respect to the NARCO Asbestos Trust, the Amended Plan has been accepted by 95.88% of the voters holding 93.15% of the claims. PACIFIC LUMBER: Section 341(a) Meeting Scheduled on May 2 --------------------------------------------------------- Charles F. McVay, the United States Trustee for Region 3, will convene a meeting of creditors of Scotia Development LLC and its debtor subsidiaries on May 2, 2007, at 10:00 a.m., at 606 N. Carancahua, Suite 1107, in Corpus Christi, Texas. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. 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). PANTRY INC: Daniel Kelly Resigns as Finance VP and CFO ------------------------------------------------------ The Pantry Inc. reported that Daniel J. Kelly, its Vice President, Finance, Chief Financial Officer and Secretary, notified the Board of Directors of the company that he intends to resign from his positions. "It was a difficult decision, but for personal and health reasons and a desire to spend more time with my family, I decided to reduce my professional commitments," " Mr. Kelly stated. Commenting on Mr. Kelly's resignation, Peter J. Sodini, Chairman and Chief Executive Officer, stated: "We appreciate Dan's financial leadership during his tenure with us and I have enjoyed working with him. We now undertake a search for a new CFO, and Dan has indicated he will be available until Nov. 30, 2007, to help effect a smooth transition and to provide financial advice after the appointment of a new CFO. We thank him for his service and look forward to continuing to work with him in this process." About The Pantry Inc. Headquartered in Sanford, North Carolina, The Pantry Inc. (NASDAQ: PTRY) -- http://www.thepantry.com/--operates convenience store chains in the southeastern United States. As of Jan. 18, 2007, the company operated 1,524 stores in eleven states under select banners including Kangaroo Express(SM), its primary operating banner. * * * Moody's Investors Service upgraded Pantry Inc.'s B1 rating n $250 million first lien senior secured revolving credit facility to Ba3. The rating outlook is negative. PENINSULA GAMING: Dec. 31 Balance Sheet Upside-Down by $56.5 Mil. ----------------------------------------------------------------- Peninsula Gaming LLC reported members' deficit of $56.5 million, which resulted from total assets of $353.8 million, and total liabilities of $410.3 million as of Dec. 31, 2006. The company decreased its accumulated deficit to $65.5 million in 2006 from $79.6 million in 2005. For the year ended Dec. 31, 2006, the company generated total net revenues of $234.4 million and a net income of $6.3 million, as compared with total net revenues of $169.1 million and a net loss of $3.4 million for the year ended Dec. 31, 2005. Increase in revenues was primarily related to an increase in casino revenues at DJW of $49.4 million. Also contributing to the increase is an increase in OED's casino revenues of $11.3 million to $106.6 million in 2006 from $95.3 million in 2005. The company's cash balance increased $44.1 million to $56.9 million at Dec. 31, 2006, from $12.8 million at Dec. 31, 2005. Cash flows from operating activities were $41.8 million in 2006, an increase of $20.3 million when compared to $21.5 million in 2005. The increase is primarily due to an increase in net income of $21.8 million and a decrease in operating assets and liabilities changes of $2.2 million primarily related to an increase in long-term assets at DJL related to the DRA agreement. Cash flows used in investing activities during 2006 were $32 million and cash flows from financing activities during 2006 of $34.3 million. As of Dec. 31, 2006, the company had no outstanding balances under the revolver portion and $4.7 million outstanding under the term loan portion of the PGL Credit Facility or Peninsula Gaming LLC Credit Facility, and outstanding letters of credit of about $900,000. In addition, as of Dec. 31, 2006, DJW or Diamond Jo Worth LLC had no outstanding balances under the DJW Credit Facility and outstanding letters of credit of about $300,000. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d4c About Peninsula Gaming Headquartered in Dubuque, Iowa, Peninsula Gaming LLC owns and operates the Evangeline Downs pari-mutuel horse racetrack and casino in Opelousas, Louisiana, and the Diamond Jo riverboat casino in Dubuque, Iowa. Through a wholly owned unrestricted subsidiary, the company is in the process of constructing a new casino property in Worth County, Iowa. * * * Peninsula Gaming LLC's $22 million senior secured notes due 2012 carry Standard & Poor's Ratings Services affirmed its 'B' rating. The notes are add-on to the company's existing $233 million senior secured notes due 2012. PLEASANT CARE: Wants Court Approval on Joseph Tutera as COO ----------------------------------------------------------- Pleasant Care Corporation and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Central District of California to employ Joseph C. Tutera as President and Chief Operating Officer and Carol Van Horst as Chief Clinical Officer The Debtors also want LTC Services LLC to provide support on an as needed basis. Mr. Tutera, as President and COO, will: a) have complete control over the Debtors' business operations; b) have exclusive control and decision making power to the Debtors' day-to-day business; and c) ensure that LTC Services will provide the Debtors' with the required additional staffing to enable Mr. Tutera perform his services as President and COO. Mr. Tutera may not be terminated as President and COO, nor the scope of his duties diminished without prior approval of the Court. Ms. Van Horst will assume control of the Debtors' clinical matters. The Debtor tells the court that: a) Ms. Van Horst will be compensated a monthly flat rate of $25,000; b) Mr. Tutera and LTC services will collectively receive a monthly flat rate of 125,000. Mr. Tutera, LTC Services and Ms. Van Horst will receive a timely reimbursement for their out-of-pocket expenses. Additionally, Mr. Tutera will receive an amount of $10,000 as reimbursement for his legal fees and expenses incurred with Michael Flanagan LLC, Tutera's Counsel, in connection with securing, negotiating and documenting this transaction. Mr. Tutera and Ms. Van Horst assure the Court that their Firms are "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. Samuel R. Maizel, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts between $1 million and $100 million. PORTOLA PACKAGING: Feb. 28 Balance Sheet Upside-Down by $91.4 Mil. ------------------------------------------------------------------ Portola Packaging Inc. reported a net loss of $3.3 million for the second quarter ended Feb. 28, 2007. This compares with a net loss of $3.9 million for the second quarter of fiscal year 2006. Portola reported sales of $63.7 million for the second quarter of fiscal year 2007 compared to sales of $63.4 million for the second quarter of fiscal year 2006, an increase of 0.5%. Portola reported operating income of $2.4 million for the second quarter of fiscal year 2007, compared to operating income of $1.2 million for the second quarter of fiscal year 2006, an increase of 100.0%. Improvements in operating income of $1.2 million for the second quarter of fiscal 2007 versus the second quarter of fiscal 2006 were mainly the result of lower selling, general and administration spending in 2007 and the non-recurring patent litigation settlement costs of $1.5 million recorded in fiscal year 2006. These cost reduction activities were offset in part by the gain on sale of fixed assets of $632,000 recorded last year. EBITDA decreased $200,000 or 3.5% to $5.5 million in the second quarter of fiscal year 2007 compared to $5.7 million in the second quarter of fiscal year 2006. Adjusted EBITDA, which excludes the effect of restructuring charges, gains or losses on the sale of assets and costs relating to the dissolution of the company's Management Deferred Compensation Plan, decreased $1.1 million or 16.4% to $5.6 million in the second quarter of fiscal year 2007 compared to $6.7 million in the second quarter of fiscal year 2006. The $1.1 million decrease in Adjusted EBITDA was driven primarily by a change of $1 million in foreign exchange versus the same quarter last year. The company reported a foreign exchange loss of $300,000 for the second quarter of fiscal year 2007 as compared to a $700,000 gain reported in the second quarter of fiscal 2006. Additionally, Adjusted EBITDA was negatively affected by increases over the prior year of $300,000 in expense for the second quarter of fiscal 2007 related to customer conversions for newly acquired business. These conversion costs are a one time expense of equipment installed in customer facilities to allow them to transition their closure business to Portola. Liquidity and Capital Resources At Feb. 28, 2007, the company had cash and cash equivalents, including restricted cash, of $3.3 million, an increase of $700,000 from Aug. 31, 2006. Cash provided by operations decreased $900,000 to $2.8 million for the six months ended Feb. 28, 2007, from cash provided by operations of $3.7 million for the six months ended Feb. 28, 2006. The decrease in cash provided by operations is due to a reduction in legal and general accruals and a decrease in cash provided by accounts receivable as compared to the previous period. Offsetting these reductions was slower growth in inventory compared to the prior period and improved financial performance related to employee cost reductions programs, productivity enhancements and other cost reduction activities. Cash used in investing activities increased to $8.3 million for the six months ended Feb. 28, 2007, compared to cash provided by investing activities of $10,000 for the six months ended Feb. 28, 2006, primarily due to additions to property, plant and equipment. At Feb. 28, 2007, the company had total indebtedness of $211.3 million, $180 million of which was attributable to the Senior Notes that mature on Feb. 1, 2012. The remaining indebtedness of $31.3 million was attributable to the five year senior revolving credit facility of up to $60 million, maturing of Jan. 23, 2009. At Feb. 28, 2007, the company's balance sheet showed $154.5 million in total assets and $245.9 million in total liabilities, resulting in a $91.4 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d3e About Portola Packaging Portola Packaging Inc. -- http://www.portpack.com/-- designs, manufactures and markets tamper-evident plastic closures used in the dairy, fruit juice, bottled water, sports drinks, institutional food products and other non-carbonated beverage products. The company also produces a wide variety of plastic bottles for use in the dairy, water and juice industries, including various high density bottles, as well as five-gallon polycarbonate water bottles. In addition, the company designs, manufactures and markets capping equipment for use in high speed bottling, filling and packaging production lines. The company is also engaged in the manufacture and sale of tooling and molds used in the blow molding markets. * * * As reported in the Troubled Company Reporter on Dec. 13, 2006, Moody's Investors Service affirmed its B1 rating for the company's $60 million Guaranteed Senior Secured Revolver and its Caa2 rating for the company's $180 million Guaranteed Senior Unsecured Notes due 2012. At the same time, Moody's revised the ratings outlook to Stable from Negative. POWER EFFICIENCY: Sobel & Co. Expresses Going Concern Doubt ----------------------------------------------------------- Sobel & Co., LLC expressed substantial doubt on Power Efficiency Corp.'s ability to continue as a going concern after auditing the company's financial statement for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations, deficiency of cash from operations and lack of sufficient liquidity to continue its operations. For the year ended Dec. 31, 2006, the company recorded a net loss of $5 million, up from a net loss for the year ended Dec. 31, 2005, of $2.6 million. The company generated revenues totaling $188,811 for the year 2006, as compared with revenues of $276,405 for the year 2005. The revenue decrease of $87,594 was mainly attributable to changes in sales personnel and the resulting disruptions to sales efforts in 2006. The balance sheet of the company as of Dec. 31, 2006, showed total assets valued at $4 million, total liabilities at $2 million, resulting to total stockholders' equity at $2 million. Accumulated deficit as of Dec. 31, 2006, stood at $22.9 million. Financial Condition and Liquidity Since inception, the company has financed its operations primarily through the sale of its securities. In 2006, the company received about $3.2 million in gross proceeds from a private placement of its common stock and warrants to purchase common stock. As of Dec. 31, 2006, the company has received a total of about $12.6 million from public and private offerings of its equity securities, received $300,000 from a bridge note with a shareholder received about $445,386 under a bank line of credit, and received $1 million under a line of credit with a shareholder. Net cash used for operating activities for the twelve months ended Dec. 31, 2006, was $2.8 million. Net cash used for operating activities for the 2005 was $2.1 million. Net cash used in investing activities for fiscal year 2006 was $90,567, as compared with $4,613 in fiscal year 2005. The company expects to increase its operating expenses, particularly in research and development and selling, general and administrative expenses, for the foreseeable future in order to execute its business strategy. As a result, the company anticipates that operating expenses will constitute a material use of any cash resources. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d4f About Power Efficiency Power Efficiency Corp. in Las Vegas, Nevada (OTC BB: PEFF) -- http://www.powerefficiencycorp.com/-- designs, develops, markets and sells proprietary solid-state electrical components to reduce energy consumption in alternating current induction motors. PTS INC: Lynda Keeton Expresses Going Concern Doubt --------------------------------------------------- Lynda R. Keeton CPA, LLC raised substantial doubt about the ability of PTS Inc. to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. Ms. Keeton pointed to the company's limited operations and continued net losses. The company obtained revenues of $781,886 for the year ended Dec. 31, 2006, versus revenues of $52,755 for the prior year- period. It incurred a net loss of $1.7 million for 2006 and $1.6 million for 2005, an increase of $70,000. The increase in revenues results from the inclusion of revenue from DAC. DAC was acquired in late 2005 with its revenue included in the financial statements only for the 45-day period from the date of acquisition. The previously reported 2005 net sales that were generated from the operations of Global Links Card Services Inc., acquired in December 2004, are now included in discontinued operations. Net loss in 2006 was partially offset by non-cash charges of $89,894 of depreciation and amortization, $716,177 in stock based expense, $163,294 in financing expense, and $117,864 of impairment expense, increased by a net change in operating assets and liabilities of $579,039. As of Dec. 31, 2006, the company listed total assets of $1.3 million and total liabilities of $1 million, resulting to total stockholders' equity of $330,394. The company also listed an accumulated deficit of $17.9 million as of Dec. 31, 2006. Cash used by operations was $1.2 million during the year ended Dec. 31, 2006. Net cash used by investing activities totaled $66,413 for the year ended Dec. 31, 2006. Cash provided by financing activities for the year ended Dec. 31, 2006, was $1.3 million. Cash proceeds from stock sold were $727,604. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d46 About PTS Inc. PTS Inc. (OTC BB: PTSH) -- http://www.ptspi.com/-- manufactures and distributes paraplegic and quadriplegic apparatus known in the market as Glove Box(TM). The company also offers consulting services for marketing production design through third party contractors. Also, through its subsidiaries, engages primarily in the sale of plastic stored value cards. The company also provides accessibility compliance consulting services. * * * As reported in Troubled Company Reporter on March 22, 2007, Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Somerset, New Jersey-based PTS. The rating outlook is stable. PW LLC: Chapter 11 Trustee Gets Court Nod to Sell Assets -------------------------------------------------------- Nancy Knupfer, Chapter 11 Trustee for PW LLC, obtained authority from the U.S. Bankruptcy Court for the Central District Of California to sell substantially all of the Debtor's assets. The auction will be held on May 2, 2007, at Courtroom No. 1475, 255 East Temple Street in Los Angeles, California. To participate in the auction, all competing bids must be received not later than 5:00 p.m. on April 23, 2007. Stalking Horse On Feb. 23, 2007, DB Burbank LLC, the stalking horse bidder, pursuant to a Binding Term Agreement, proposed to buy all of the Debtor's assets in exchange for the: a) non-filing of reorganization by the Trustee or DB; b) non-extension or continuance of the Sale Date; c) Trustee's and DB's waiver of any rights to effect modification of any of the agreed terms, including the sale of the property to DB; d) waiver of any right to seek to amend order approving the Binding Term Sheet or any related Court order; e) a right of DB to compel the Trustee to sell the property to for all the amount owed to DB as of the petition date, and to compel the Trustee to execute any and related documentation to effectuate the sale. At the closing of the Sale, the trustee will transfer without warranty or recourse all of the estate's litigation rights and claims related to the international church of the foursquare gospel and the Church Purchase agreement in June 1999, including any estate causes of action and including all rights and claims to all deposits paid to the Church. Headquartered in Santa Monica, California, PW LLC filed for Chapter 11 protection on November 20, 2006 (Bankr. C.D. Calif. Case No. 06-16059). Martin J. Brill, Esq. of Levene, Neale, Bender, Rankin & Brill LLP represents the Debtor in its restructuring efforts. No Official Creditors Committee was appointed in this case. In its schedules filed with the Court, the Debtor disclosed total assets of $55,500,000 and total liabilities of $49,197,639. On Dec. 27, 2006, Nancy Knupfer was appointed as the Debtor's chapter 11 trustee. John N. Tedford, Esq., at Danning, Gill, Diamond & Kollitz, represents the chapter 11 trustee. PW LLC: Court Sets June 29 as General Claims Bar Date ----------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California set June 29, 2007, as the deadline for all creditors owed money by PW LLC on account of claims arising prior to Nov. 20, 2006, to file their proofs of claim. Proofs of claims must be mailed or delivered by hand on or before the June 29 Bar Date to the Debtors' Counsel at: Martin J. Brill, Esq. Levene, Neale, Bender, Rankin & Brill LLP Suite 1700 10250 Constellation Boulevard Los Angeles, CA 90067 Headquartered in Santa Monica, California, PW LLC filed for Chapter 11 protection on November 20, 2006 (Bankr. C.D. Calif. Case No. 06-16059). Martin J. Brill, Esq. of Levene, Neale, Bender, Rankin & Brill LLP represents the Debtor in its restructuring efforts. No Official Creditors Committee was appointed in this case. In its schedules filed with the Court, the Debtor disclosed total assets of $55,500,000 and total liabilities of $49,197,639. On Dec. 27, 2006, Nancy Knupfer was appointed as the Debtor's chapter 11 trustee. John N. Tedford, Esq., at Danning, Gill, Diamond & Kollitz, represents the chapter 11 trustee. QUEST DIAGNOSTICS: AmeriPath Purchase Cues Moody's Ratings Review ----------------------------------------------------------------- Moody's Investors Service placed the ratings of Quest Diagnostics Incorporated under review for possible downgrade (Baa2 senior unsecured debt rating). This rating action follows the recent announcement that Quest has signed a definitive agreement to acquire AmeriPath in an all cash transaction valued at approximately $2 billion, including the assumption of approximately $770 million in AmeriPath debt (B2 Corporate Family Rating). Concurrently, Moody's placed the ratings of AmeriPath under review for possible upgrade. Moody's expects the deal to close by the end of the second quarter of 2007 and is subject to shareholder and regulatory approval. Moody's estimates that Quest is paying over two times projected 2008 annual revenue and over 10 times projected 2008 annual EBITDA, including synergies, for AmeriPath. Moody's assumes that Quest will issue a new $1 billion bridge loan in addition to a new five-year $1.5 billion term loan. The proceeds will be used to finance the cash payment being made to AmeriPath's shareholders and to refinance the debt incurred with Quest's acquisition of HemoCue, completed in February 2007. Moody's understands that Quest will also refinance AmeriPath's outstanding debt with the transaction expected to close in the second quarter of 2007. Moody's believes that Quest's ratings could be downgraded, if at all, by as much as two notches. The major factor in determining the outcome of the rating review will be an assessment of Quest's ability and willingness to repay debt and reduce leverage in the next two years. Moody's will also assess: (1) the degree and extent that the company curtails the use of its free cash flow to purchase its shares; (2) the structure and terms of both existing and proposed debt, including potential guarantees and security features to assess whether there will be any notching difference between the different tranches of debt; and (3) the effect of greater pricing pressure and contract turnover with several key managed care contracts, including the United Health contract, which had accounted for about 7% of Quest's 2006 revenues. Despite the high valuation and increase in leverage, Moody's anticipates that the acquisition will provide several benefits. First, the combined company will establish a leading position in cancer diagnostics with a focus on dermapathology, anatomic pathology and molecular diagnostics, three of the fastest growing areas in diagnostics testing. Second, Ameripath's Specialty Laboratories segment will strengthen the hospital and esoteric testing business of Quest. Third, the acquisition will accelerate Quest's revenue and earnings growth, beginning in 2008. Lastly, Moody's anticipates that Quest will seek to improve the profitability and internal growth rate of AmeriPath through cost synergies, leveraging Quest's sales resources, distribution and infrastructure and the benefits of an expanded testing portfolio. Ratings placed on review for possible downgrade: Quest Diagnostics Incorporated: * Senior Unsecured Notes, rated Baa2 * Senior Credit Facility, rated Baa2 * Senior Unsecured Shelf rating, (P) Baa2 * Subordinate Shelf rating, (P) Baa3 * Preferred Shelf rating, (P) Bal Ratings placed on review for possible upgrade: Ameripath, Inc:. * Senior Secured Revolving Credit Facility, rated Ba2, LGD2, 13% * Senior Secured Term Loan B, rated Ba2, LGD2, 13% * Corporate Family Rating, B2 * Probability of Default Rating, B2 * Senior Subordinated Notes, rated B3, LGD4, 62% AmeriPath Intermediate Holdings, Inc.: * Floating Rate PIK Toggle Notes, rated Caa1, LGD5, 88% Since the exact terms and structure of the planned debt financing have not yet been finalized, Moody's notes that the individual debt ratings will be determined at the conclusion of this review and will depend on securities and guarantees in determining how each tranche of debt will be rated. If AmeriPath's debt is paid at or about the time of the closing of the acquisition, Moody's anticipates confirming its ratings and withdrawing them. Quest Diagnostics Incorporated, headquartered in Teterboro, New Jersey, is the largest clinical laboratory testing business in the United States, providing a broad range of routine and esoteric services to the medical profession. Revenues were just under $6.3 billion in 2006. AmeriPath is a leading national provider of physician based anatomic pathology, dermapathology and molecular diagnostics services to physicians, hospitals, national clinical laboratories and surgery centers. For 2006, AmeriPath reported revenues of $752 million. REMY INT'L: Interest Non-Payment Cues Moody's to Junk Ratings ------------------------------------------------------------- Moody's Investors Service has lowered the ratings of Remy International, Inc.: * Corporate Family Rating to Ca from Caa3, * Probability of Default Rating to Ca from Caa2, * guaranteed senior unsecured notes to Ca from Caa3, and * senior subordinated notes to C from Ca. The ratings remain under review for possible further downgrade. The downgrade reflects Remy's announcement that it has not made approximately $7 million of interest payments on its 9.325% senior subordinated notes and has entered into forbearance agreements with almost 90% of its unsecured noteholders. There is a thirty- day interest payment grace period in the interest payment for the senior subordinated notes. The forbearance agreements are expected to facilitate recently announced ongoing discussions with representatives of a majority of the holders of its outstanding notes regarding a recapitalization plan to delever the Company's balance sheet. According to the company, it continues to have access to its revolving credit facility, providing liquidity for the company to continue with the negotiations with its noteholders. Remy has made current interest payments on its second priority floating rate notes, and the rating for this instrument is unchanged at Caa3, but is included in the review for downgrade. While the second-priority senior secured noteholders have not provided waivers, the fact that their interest was paid may induce them to forebear from accelerating in order to support further negotiations. The review for downgrade reflects the uncertainty associated with the successful completion of a refinancing initiative combined with the ongoing challenges in the automotive parts supply sector. Remy recently announced that it maintained $25MM of unrestricted cash and cash equivalents and $48MM of availability under the revolving credit facility. Additionally, there is $50 million of cash from recent asset sales in escrow for the benefit of the senior secured lenders. As part of the amendment for Remy to sell its diesel remanufacturing business, the asset based revolving credit agreement commitment has been reduced by $40 million. Remy also has notified the SEC that it is no longer required to file reports. Ratings lowered: * Corporate Family Rating, to Ca from Caa3; * Probability of Default Rating to Ca from Caa2; * $145 million of 8.625% guaranteed senior unsecured notes to Ca (LGD4, 69%) from Caa3 (LGD5, 71%); * $150 million of 9.375% guaranteed senior subordinated notes, to C (LGD6, 91%) from Ca (LGD6 92%); * $165 million of 11% guaranteed senior subordinated notes, to C (LGD6, 91%) from Ca (LGD6 92%); Ratings not affected: * Caa3 rating for the $125 million of guaranteed second- priority senior secured floating rate notes with the LGD Assessment changed to (LGD3, 49%) from Caa3 (LGD4, 53%); The last rating action was on Dec. 13, 2006 when the ratings were lowered. The $80 million senior secured term loan and the senior secured asset based revolving credit facility are not rated by Moody's. Remy International, Inc., is headquartered in Anderson, Indiana. The company is a leading global manufacturer and remanufacturer of aftermarket and original equipment electrical components for automobiles, light trucks, heavy duty trucks and other heavy duty vehicles. Remy International is privately owned in the following approximate percentages by affiliates of Citicorp Venture Capital (70%); Berkshire Hathaway (20%); and management/miscellaneous other investors (10%). Annual revenues over the last twelve months approximated $1.4 billion. ROO GROUP: Moore Stephens Raises Going Concern Doubt ---------------------------------------------------- Moore Stephens PC expressed substantial doubt on the ability of ROO Group Inc. to continue as a going concern after auditing the company's financial statements as of Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and negative cash flows from operations. The company recorded a net loss applicable to common shareholders of $14.6 million for the year ended Dec. 31, 2006, versus $9 million for the same period a year earlier. Revenues were $9.8 million for the year ended Dec. 31, 2006, versus $6.6 million for the year ended Dec. 31, 2005. Operating expenses increased by $4 million from $4.5 million for the year ended Dec.31, 2005 to $8.5 million for the year Dec. 31, 2006. As of Dec. 31, 2006, the company had $20.6 million in total assets, $4.9 million in total liabilities, and $89,000 in minority interests, resulting to $15.8 million in total stockholders' equity. As of Dec. 31, 2006, the company had working capital of about $11.8 million with a cash balance of $11.9 million. Management believes that there will be an increase in overall expenses to expand the company's operations on a global basis during 2007. Net cash used in operating activities was $12.4 million for the year ended Dec.31, 2006, as compared with $4.9 million for the year ended Dec. 31, 2005, an increase of $7.5 million. The increase in net cash used in operating activities is primarily the result of our net loss. Net cash used in investing activities was $822,000 for the year 2006, as compared with net cash used in investing activities for the year 2005 of $714,000, an increase of $108,000. Net cash provided by financing activities was $19.9 million for the year ended 2006, as compared with net cash provided by financing activities of $10.6 million for the year-ago period, an increase in net cash provided by financing activities of $9.3 million. August 2006 Financing On Aug. 18, 2006, the company entered into a Common Stock Purchase Agreement pursuant and sold an aggregate of 4,420,000 of shares of common stock and 2,210,000 warrants to purchase shares of common stock to 28 accredited investors. The shares of common stock were sold at a price of $1.25 per share or an aggregate of about $5.5 million. The warrants have an exercise price of $2 per share and a term of five years. The company failed to fulfill its obligations to timely file the Registration Statement and owes about $166,000 in liquidated damages to the investors. The Registration Statement was declared effective on Dec. 27, 2006. November 2006 Financing On Nov. 14, 2006, the company entered into a Securities Purchase Agreement pursuant to which we sold an aggregate of 8,378,377 shares of common stock and warrants to purchase 2,513,513 shares of common stock to 20 accredited investors. The offering closed on Nov. 16, 2006. The shares of common stock were sold at a price of $1.85 per share or an aggregate of $15.5 million. Each investor was issued warrants to purchase a number of shares of common stock equal to 30% of the number of shares of common stock purchased. The warrants have an exercise price of $3 per share and a term of five years. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d50 About ROO Group ROO Group Inc. (OTC BB: RGRP) -- http://www.roo.com/-- provides digital media solutions and technology that enables the activation, marketing and distribution of digital media video content over the Internet and emerging broadcasting platforms such as set top boxes and wireless. ROO offers turnkey video solutions for businesses seeking to improve their web presence with video broadcasts or broadcast their own latest video clips. SAMARITAN ALLIANCE: Case Summary & 43 Largest Unsecured Creditors ----------------------------------------------------------------- Lead Debtor: Samaritan Alliance, L.L.C. dba Samaritan Hospital fdba James Noble Rural Health Care Clinic 310 South Limestone Lexington, KY 40508 Bankruptcy Case No.: 07-50735 Debtor-affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Associated Physicians Services of 07-50736 Lexington, L.L.C. Associated Healthcare Systems of 07-50737 Lexington, L.L.C. Integrated Health Plus, L.L.C. 07-50738 Kentucky Internal Medicine Group, 07-50739 P.L.L.C. Type of Business: The Debtors provide a range of health and wellness services in Lexington, Kentucky. See http://www.samaritanhospital.com/ Chapter 11 Petition Date: April 16, 2007 Court: Eastern District of Kentucky (Lexington) Judge: William S. Howard Debtors' Counsel: W. Thomas Bunch, II, Esq. Thomas Bunch, Sr., Esq. Bunch & Brock, Attorneys-at-Law 271 West Short Street, Suite 805 P.O. Box 2086 Lexington, KY 40588-2086 Tel: (859) 254-5522 Total Assets: $21,054,795 Total Debts: $25,645,512 A. Samaritan Alliance, LLC's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sodexho Marriot Management, $1,053,846 Inc. P.O. Box 70060 Chicago, IL 60673 G.E. Healthcare Technologies lease arrearages $680,080 P.O. Box 96483 Chicago, IL 60693 Depuy Spine-J&J H.C.S. $593,660 P.O. Box 406663 Atlanta, GA 30384-6663 Biomet, Inc. $566,936 56 East Bell Drive P.O. Box 587 Warsaw, IN 46581-0587 Pain Care of Kentucky $482,379 P.O. Box 635102 Cincinnati, OH 45263-5102 Citadel Outsource Group, $307,516 L.L.C. 162 Imperial Boulevard Hendersonville, TN 37075 Boston Scientific Meditech $295,630 P.O. Box 951653 Dallas, TX 75395-1653 W.L. Gore Assoc., Inc. $294,768 P.O. Box 2400 Flagstaff, AZ 86003-2400 Marshall Emergency Serv. $264,000 Assoc. 3205 Summit Square Place, Suite 100 Lexington, KY 40509 Energy U.S.A.-T.P.C Corp. $242,833 Enducare $213,565 Rossa Rossa Assoc. $191,958 Dialysis Clinic $189,450 Wright Medical Technology $166,219 Farris Matthew Branan & $164,875 Bobango Ameripath KY, Inc. $160,049 Hill Rom $153,892 Gess Mattingly Atch. $138,310 C.C.M. Management & $132,092 Clearbrook & H.D.C. Healtcare Management $91,482 Systems B. Associated Physicians Services of Lexington, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kentucky Medical Services value of $11,956,064 Foundation security: 138 Leader Avenue $43,936 Lexington, KY 40508 C. Associated Healthcare Systems of Lexington, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kentucky Medical Services value of $12,000,000 Foundation security: 138 Leader Avenue $292,000 Lexington, KY 40508 Fifth Third Bank $292,000 250 West Main Street, Suite 100 Lexington, KY 40507 D. Integrated Health Plus, LLC's 3 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kentucky Medical Services value of $11,995,206 Foundation security: 138 Leader Avenue $4,794 Lexington, KY 40508 First State Financial, Inc. $436,872 3620 Walden Drive, Suite 100 Lexington, KY 40507 Chris Bowe $32,000 92 Summertree Drive Nicholasville, KY 40356 E. Kentucky Internal Medicine Group, LLC's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Commonwealth Physicians $8,606 Billing Service 870 Corporate Drive, Suite 400 Lexington, KY 40503 Lexington Heart Specialists $5,000 1760 Nicholasville Road, Building C, Suite 402 Lexington, KY 40503 L.F.U.C.G.-Division of Revenue taxes $4,455 200 East Main Street Lexington, KY 40507 Henry Schein/Caligor $3,588 BB&T Bankcard Corporation $2,789 Psimer & Associates, Inc. $2,350 Snelling Staffing Services $1,524 Fifth Third Bank $1,260 Fayette County Public $832 Schools St. Joseph East $772 Telcove Operations $668 Lexington Medical Society $630 Idearc Media Corp. $463 Windstream Yellow Pages $392 U.K. News $270 Vax Serve (medical $266 injectibles) Medical Office Manager $257 Telenet Communications $210 Windstream $168 Tristate Mailing $100 Systems, Inc. SANDY ENGINEERING: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Sandy Engineering, Inc. 3868 Bengert Street Orlando, FL 32808 Bankruptcy Case No.: 07-01452 Type of Business: Founded by Sandy Schneider in 1995, the Debtor is a woman-owned business that started out strictly as a precision laser cutting operation but has expanded to a metal fabrication facility. See http://sandyengineering.com Chapter 11 Petition Date: April 16, 2007 Court: Middle District of Florida (Orlando) Judge: Arthur B. Briskman Debtor's Counsel: Kevin E. Mangum, Esq. Mangum & Associates, P.A. 5100 Highway 17-92, Suite 200 Casselberry, FL 32707 Tel: (407) 478-1555 Fax: (407) 478-1552 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not submit a list of its 20 largest unsecured creditors. SASKATCHEWAN WHEAT: Revised Agricore Bid Cues S&P's Positive Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings, including its 'B+' long-term corporate credit rating, on Saskatchewan Wheat Pool on CreditWatch with positive implications, following its revised bid for Agricore United. At the same time, Standard & Poor's revised its CreditWatch placement on AU to developing from positive. The offer from SWP, which AU's board has determined to be a "superior proposal" to its acquisition agreement with James Richardson International Ltd., consists of CDN$20 per share in cash, about 2.2 SWP common shares, or any combination thereof. The funds from SWP's four separate subscription receipts offerings will be used to fully finance the Pool's final offer for the shares of Agricore United, with the maximum amount of cash SWP would pay being C$842.6 million. "The proposed combination of SWP and AU would be positive in terms of market share, synergies, and pricing power," said Standard & Poor's credit analyst Don Povilaitis. "The new company would have a strengthened business risk profile, while the financial profile will not reflect any incremental debt to finance the purchase," Mr. Povilaitis added. On March 28, 2007, SWP received clearance from the Canadian competition bureau to merge with AU, subject to certain asset dispositions. JRI has until April 20, 2007, to match SWP's "superior bid." If JRI elects not to proceed with a new bid, a CDN$24 million termination fee would be payable to JRI. The ratings on SWP and AU will remain on CreditWatch even if no competing bids emerge before April 20, after which we will assess the impact of the merger on the credit profile of the new entity. SEA CONTAINERS: Services' Panel Hires Kroll as Financial Advisor ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sea Containers Services Ltd. cases obtained authority from the U.S. Bankruptcy Court for the District of Delaware to retain Kroll Ltd. as its financial advisor, nunc pro tunc to Oct. 26, 2006. Kroll has acted to protect and advance the interests of the Official Services Committee in the Debtors' bankruptcy cases since its formation on Oct. 26, 2006. Kroll's services have materially benefited the unsecured creditors of Sea Containers Services, and have served to protect their rights until Kroll's formal retention. As a result of its services, Kroll has become directly familiar with the facts and circumstances surrounding Sea Containers Services and the issues that the Official Services Committee will face during the bankruptcy cases. Kroll and its professionals are uniquely qualified to advise the Official Services Committee. Kroll is expected to: a. evaluate the assets and liabilities of the Debtors and their affiliates; b. analyze and review the financial and operating statements of the Debtors and their affiliates; c. analyze the business plans and forecasts of the Debtors and their affiliates; d. provide specific valuation or other financial analysis as the Official Services Committee may require; e. help with the claim resolution process and related distributions; f. provide consideration of and advice on financial and commercial aspects of any plan of reorganization proposed as part of the Debtors' bankruptcy cases, including preparation, analysis and explanation of the plan to the Official Services Committee; g. attend meetings of the Official Services Committee and their advisors; h. assist as required with negotiations among the various creditors and stakeholders in the bankruptcy cases; i. coordinate Kroll's work with that of other professional advisors and assist the Official Services Committee in the understanding and interpretation of the work; j. coordinate regular communications among the Official Services Committee, its professionals, and other parties as required, to discuss ongoing matters; k. provide accounting advice and expertise to the Official Services Committee as required; and 1. any other matters for which the Official Services Committee seeks the financial advisory services of Kroll and for which Kroll agrees to provide. Kroll will be paid for its services based on its standard hourly rates: Designation Hourly Rate ----------- ----------- Partner $550 Director $425 Senior Associate $400 Other Senior Professional $200 - $295 Other Staff $75 - $150 Gary Squires, Esq., a partner in the corporate advisory and restructuring group at Kroll, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. 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). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers Ltd. disclosed total assets of $62,400,718 and total liabilities of $1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan of reorganization expires on June 12, 2007. (Sea Containers Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SEA CONTAINERS: Services' Panel Hires Willkie Farr as Counsel ------------------------------------------------------------- The Official Committee of Unsecured Creditors in Sea Containers Services, Ltd. and its debtor-affiliates' Chapter 11 case obtained authority from the Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware to employ Willkie Farr & Gallagher LLP as its counsel, nunc pro tunc to Jan. 22, 2007. The Official Services Committee represents the interests of Sea Containers 1983 Pension Scheme and Sea Containers 1990 Pension Scheme in the Debtors' bankruptcy cases. The Official Services Committee engaged WF&G as its counsel on Jan. 22, 2007, and has since acted to protect and advance the interests of the Committee. The firm's attorneys have conducted, and continue to conduct, due diligence in conjunction with its engagement. WF&G's services have materially benefited the Official Services Committee and have served to protect its rights. WF&G is expected to: a. provide legal advice with respect to the Official Services Committee's rights, powers, claims, and duties in the bankruptcy cases; b. represent the Services Committee at all negotiations, hearings, and other proceedings; c. advise and assist the Services Committee in discussions with the Debtors and other parties-in-interest, as well as professionals retained by any of the parties, regarding the overall administration of the Chapter 11 cases; d. assist with the Services Committee's investigation of the assets, liabilities, and financial condition of the Debtor, and of the operations of the Debtors' businesses; e. assist and advise the Services Committee with respect to its communications with other creditors; f. review and analyze on behalf of the Services Committee all pleadings, orders, statements of operations, schedules, and other legal documents; g. prepare on behalf of the Services Committee all pleadings, motions, orders, reports, and other papers in furtherance of its interests and objectives; and h. perform all other legal services for the Services Committee that may be necessary and proper. The firm will be paid for its services based on its standard hourly rates, plus reimbursement of actual and necessary expenses incurred by WF&G. Designation Hourly Rate ----------- ----------- Attorneys $265 - $885 Paralegals $150 - $235 The current hourly rates of the professionals that are likely to be engaged in the Debtors' Chapter 11 cases are: Professionals Designation Hourly Rate ------------- ----------- ----------- Marc Abrams, Esq. Partner $885 Michael J. Kelly, Esq. Partner $725 Casey Boyle, Esq. Associate $460 Seth Kleinman, Esq. Law Clerk $260 Marc Abrams, Esq., a member of WF&G, 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 and associates of WF&G do not represent or hold an interest adverse to the Debtors, their creditors, or any other party-in-interest in the matters regarding WF&G's engagement, Mr. Abrams adds. Mr. Abrams can be contacted at: Marc Abrams, Esq. Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019-6099 Tel: (212) 728-8000 Fax: (212) 728-8111 http://www.willkie.com/ 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). Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady, Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at Young, Conaway, Stargatt & Taylor, represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors and the Financial Members Sub-Committee of the Official Committee of Unsecured Creditors of Sea Containers Ltd. is represented by William H. Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris, Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s Official Committee of Unsecured Creditors is represented by attorneys at Willkie Farr & Gallagher LLP. In its schedules filed with the Court, Sea Containers Ltd. disclosed total assets of $62,400,718 and total liabilities of $1,545,384,083. The Debtors' exclusive period to file a chapter 11 plan of reorganization expires on June 12, 2007. (Sea Containers Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) SITESTAR CORP: Bagell Josephs Reports Going Concern Doubt --------------------------------------------------------- Bagell, Josephs, Levine & Company, LLC raised substantial doubt about SiteStar Corporation's ability to continue as a going concern following its audit of the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's negative net working capital of $1.1 million. Bagell Josephs also added that unless the company is successful in generating new sources of revenue, or obtaining debt or equity financing, or restructuring its business, the company is likely to deplete its working capital during 2007. The company earned $992,385 for the year ended Dec. 31, 2006, as compared with a net income of $640,114 a year earlier. Total revenues for 2006 were $5.6 million, consisting of $5.5 million Internet service revenue and $87,006 retail revenue. Total revenues for 2005 were $3.7 million, consisting of $3.5 million Internet service revenue and $152,834 retail revenue. As of Dec. 31, 2006, the company had total assets of $4 million and total liabilities of $2.3 million, resulting to total stockholders' equity of $1.7 million. The company's December 31 balance sheet also showed strained liquidity with total current assets of $323,755 available to pay total current liabilities of $1.4 million. The company recorded an accumulated deficit of $11.7 million as of Dec. 31, 2006. Cash and cash equivalents totaled $129,453 and $36,047 at Dec. 31, 2006, and 2005, respectively. The company had a working capital deficiency of $1.1 million as of Dec. 31, 2006. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d53 About Sitestar Corp. Headquartered in Lynchburg, Virginia, Sitestar Corporation -- http://www.sitestar.com/-- is an Internet access and computer solutions provider that offers narrow and broadband Internet access, Web hosting and design and other value-added services to residential and commercial customers. The company's customers include residential and commercial accounts throughout the U.S. and Canada. Sitestar's wholly owned subsidiaries include Sitestar.net, netROVER Inc., Prolynx, SurfWithUs.Net, Lynchburg.net, Advanced Internet Services, Computers by Design, and CBD Toner Recharge. The company was founded in 1999 and is traded on the over-the- counter bulletin board exchange under the symbol SYTE. SONICBLUE INC: Court Okays Dennis Connolly as Chapter 11 Trustee ---------------------------------------------------------------- The United States Bankruptcy Court for the Northern District of California issued an order approving the appointment of Dennis J. Connolly as Chapter 11 trustee in SONICblue Incorporated's case, Bankruptcy Data said on its Web site Tuesday. According to the report, the Court order further approves and directs the immediate posting of a $625,000 bond, $500,000 of which will be bonded and under the Chapter 11 trustee's immediate control. The remaining funds of the estates will be deposited into a restricted account, the source said. About SONICblue Incorporated Headquartered in Santa Clara, California, SONICblue Incorporated is involved in the converging Internet, digital media, entertainment and consumer electronics markets. The company, together with three of its wholly owned subsidiaries, Diamond Multimedia Systems Inc., ReplayTV Inc., and Sensory Science Corporation, filed for chapter 11 protection on Mar. 21, 2003 (Bankr. N.D. Calif. Case Nos. 03-51775 to 03-51778). When the Debtors filed for protection from their creditors, they listed assets totaling $342,871,000 and debts totaling $335,473,000. SPECTRUM BRANDS: 8-1/2% Senior Notes Exchange Offer Expires ----------------------------------------------------------- Spectrum Brands, Inc. disclosed the: (i) the expiration, as of 12:00 Midnight, New York City time, on April 13, 2007, of the exchange offer for all of the company's outstanding 8-1/2% Senior Subordinated Notes due 2013; and (ii) the acceptance of the Existing Notes that were validly tendered prior to the expiration of the Exchange Offer. As of 12:00 Midnight, New York City time, on April 13, 2007, a total of $347,127,000 in principal amount of the Existing Notes, representing 99.18% of the aggregate outstanding principal amount of Existing Notes were tendered in the Exchange Offer. Approximately $2,296,000 in additional principal amount of the Existing Notes, representing approximately 0.66% of the aggregate outstanding principal amount of Existing Notes, were validly tendered in the Exchange Offer following the expiration of the consent solicitation on March 29, 2007. Holders tendering after March 29, 2007, whose Existing Notes have been accepted by the company, will promptly receive $950 in principal amount of Variable Rate Toggle Senior Subordinated Notes due 2013. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. * * * As reported in the Troubled Company Reporter on April 2, 2007, Moody's Investors Service lowered Spectrum Brands Inc. corporate family rating to Caa1 from B3. Moody's also assigned a B2 rating to Spectrum's proposed new senior secured term loan and a Caa3 rating to its $350 million variable rate toggle senior subordinated notes due 2013, which the company is offering in exchange for the $350 million 8.5% senior subordinated notes due 2013. Moody's also lowered the rating of the company's $700 million 7.375% senior subordinated notes due 2015 and for the original notes to Caa3 from Caa2. Standard & Poor's Ratings Services assigned its loan and recovery ratings to Spectrum Brands Inc.'s planned $1.6 billion senior secured bank financing, which includes a $1.55 billion first-lien term loan B and a $50 million first-lien letter of credit facility both maturing in 2013. A portion of the term loan can be denominated in Euros and Canadian dollars. The facilities are rated 'CCC+' with a recovery rating of '2', indicating the expectation of substantial recovery of principal in the event of a payment default. Standard & Poor's also assigned a 'CCC-' rating to Spectrum Brands' planned $350 million variable rate toggle senior subordinated notes due 2013. TELESOURCE INT'L: Dec. 31 Balance Sheet Upside-Down by $5.8 Mil. ---------------------------------------------------------------- Telesource International Inc., the construction company, posted total stockholders' deficit amounting to $5.8 million, a result of total assets of $11.1 million and total liabilities of $16.9 million in its balance sheet as of Dec. 31, 2006. The company's Dec. 31, 2006, balance sheet also showed an accumulated deficit of $62.9 million, up from an accumulated deficit of $59.4 million a year earlier. For the year ended Dec. 31, 2006, the company reported gross revenues of $5.5 million and a net loss of $3.5 million, as compared with gross revenues of $5.9 million and a net loss of $5.4 million for the year ended Dec. 31, 2005. The company incurred operating losses of $2.1 million and $4.7 million for the years ended Dec. 31, 2006, and 2005, respectively. Liquidity As of Dec. 31, 2006, the company's total liabilities exceeded total assets by $5.8 million, a $2.4 million improvement over 2005. The company continues to rely on equity sales to SHBC and bank financing to support its operations. Its ability to refinance its existing bank debt is critical to provide funding to satisfy the company's obligations as they mature. As of Dec. 31, 2006, the company had total outstanding debt of $14.6 million of which $2.5 million is due in 2007. Cash used in operating activities was $1.3 million and $3.5 million for the years ended Dec. 31, 2006, and 2005, respectively. Funds provided through financing activities representing either debt or common stock issuance amounted to $3 million and $2 million for the years ended Dec. 31, 2006, and 2005, respectively. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d54 About Telesource International Telesource International, Inc. (Pink Sheeet: TSCI) -- http://www.telesource.org/-- has three main operating segments, power generation, construction of power plants and construction services, and brokerage of goods and services. Sayed Hamid Behbehani & Sons Co. W.L.L., a Kuwait-based civil, electrical and mechanical construction company, currently controls over 85% of the company's shares. The Company conducts its operations through the parent company and its three subsidiaries located in four geographic locations. Telesource International in Lombard, Illinois, U.S.A., the company's headquarters, that operates a small service for the procurement, export and shipping of U.S. fabricated products for use by the company's subsidiaries or for resale to customers outside of the mainland. Telesource Fiji Ltd. on island of Fiji where it maintains and operates diesel fired electric power generation plants. Telesource CNMI Inc., on the island of Tinian, an island in the Commonwealth of Mariana Islands (U.S. Territory), where it operates a diesel fired electric power generation plant. In Saipan, the company maintains offices for coordinating marketing and development activities in the region. TEXAS WYOMING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Texas Wyoming Drilling, Inc. 1421 F.M. 1189, Suite 7 Weatherford, TX 76087 Bankruptcy Case No.: 07-41650 Type of Business: The Debtor is a drilling contractor and service company operating in Wyoming. See http://www.texaswyoming.com Chapter 11 Petition Date: April 16, 2007 Court: Northern District of Texas (Fort Worth) Debtor's Counsel: Jeffery D. Carruth, Esq. Mark A. Castillo, Esq. Stephanie Diane Curtis, Esq. The Curtis Law Firm, P.C. Bank of America Plaza 901 Main Street, Suite 6515 Dallas, TX 75202 Tel: (214) 752-2222 Fax: (214) 752-0709 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ James Proctor $150,000 c/o David Purcell, Esq. Wells Purcell Kraatz & Brookman 1619 Pennsylvania Avenue Fort Worth, TX 76104 Allied North America Corp. of Texas $141,702 12770 Coit Road, Suite 750 Dallas, TX 75251 Reedy Manufacturing & Repair Service, Inc. $140,000 P.O. Box 2413 8711 Andrews Highway Odessa, TX 79760 Farmers Cooperative Association $86,442 Humana Insurance Co. $76,230 Inland Machine & Welding Co. $39,797 Midsouthern Pipe & Supply, Inc. $39,060 Federal Express $37,638 Oil Works, Inc. $35,219 Advanced Pressure, Inc. $34,228 A.I.C.C.O., Inc. $34,228 Lake & Gardenier, L.L.P. $26,545 Total Credit Recovery $26,000 Alvarado Bit Service $24,628 Kelly Wire Rope, Inc. $19,553 National Oilwell $17,747 Howard-Turner Manufacturing Co. $16,572 Chickasha Mud Pump Repair $14,680 Gambler Trucking $14,487 F.B.M. Trading $12,990 TOWNSEND CONSTRUCTION: Case Summary & 20 Largest Unsec. Creditors ----------------------------------------------------------------- Debtor: Townsend Construction, Inc. 6741 Corsair Avenue Prescott, AZ 86301 Tel: (602) 307-0837 Bankruptcy Case No.: 07-01693 Type of Business: The Debtor is a semi-custom, custom home builder. See http://www.townsendhomes.com/ Chapter 11 Petition Date: April 16, 2007 Court: District of Arizona (Phoenix) Judge: Redfield T. Baum, P.C.T. Sr. Debtor's Counsel: Mark J. Giunta, Esq. 845 North Third Avenue Phoenix, AZ 85003-1408 Tel: (602) 307-0837 Fax: (602) 307-0838 Financial condition as of December 31, 2006: Total Assets: $35,144,072 Total Debts: $34,484,047 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Arizona Department of Revenue T.P.T. privilege $1,061,513 1600 West Monroe Phoenix, AZ 85007 Tri City Homes framing labor $127,780 P.O. Box 26457 Prescott Valley, AZ 86312 K.C.K.C. Cabinets cabinet $116,416 7247 1st Street materials and Prescott Valley, AZ 86314 labor Wargo Construction concrete sub. $112,666 Sears Commercial Sales appliances $92,295 Best Pick Disposal Porta Johns and $77,062 trash removal Brees Plumbing plumbing $69,644 materials and labor Indian Air H.V.A.C. sub. $58,756 Hughes Western flooring $42,005 materials Allied Building Products roofing materials $36,406 Mountain Marble marble $36,111 materials and labor Central Arizona Plumbing painting $34,035 materials and labor Trueline Engineering engineering $34,000 American Home Furnishings model furniture $33,422 Santec Engineering engineering $30,774 Beth Ford property taxes $28,917 Bennett Oil Company gas for work $27,685 vehicles Helfenstine and Assoc. C.P.A. $18,930 Neumann High Country overhead door $18,771 Doors sub. Ed's Construction block sub. $17,174 TREY FARMS: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Trey Heigle Farms 111 Depot Drive, Suite B Madison, MS 39110 Tel: (601) 853-8570 Bankruptcy Case No.: 07-01174 Chapter 11 Petition Date: April 16, 2007 Court: Southern District of Mississippi (Jackson) Debtor's Counsel: Craig M. Geno, Esq. Harris Jernigan & Geno, PLLC 587 Highland Colony, Parkway P.O. Box 3380 Ridgeland, MS 39157 Tel: (601) 427-0048 Fax: (601) 427-0050 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. TWIN PINES: Auction Sale of All Assets Scheduled on April 26 ------------------------------------------------------------ Robert L. Geltzer, Esq., the trustee overseeing the liquidation of Twin Pines Fuel Corp., obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to sell substantially all of Twin Pines' assets in Bronx, New York to Myron and Selina Siegel FLP, subject to higher and better offers. The assets will be sold at an auction set for April 26, 2007, 8:30 a.m., Eastern Time, at the offices of Bryan Cave LLP, No. 1290 Avenue of the Americas in New York. To participate in the auction, competing bids must accompany: a) a $210,000 deposit presented in a form of cashier's check or certified funds payable to the Trustee; b) a purchase price offer of at least $2,100,000. Bids will be in the increments of $25,000. For more information on the auction, contact Mr. Geltzer at: Suite 505 1556 Third Avenue New York 10128 Tel: (212) 410-0100 U.S. ENERGY: Nears Chap. 11 Exit as Court Okays Pact with ICC ------------------------------------------------------------- Bankruptcy Law 360 said on its Web site Tuesday that a U.S. bankruptcy judge has approved a "critical" agreement between the Illinois Commerce Commission and U.S. Energy Biogas Corporation, setting the stage for the renewable energy company's emergence from Chapter 11 next month. Earlier, U.S. Energy and its debtor-affiliates asked the U.S. Bankruptcy Court for the Southern District of New York to extend, until April 30, 2007, the exclusive period wherein they can exclusively file a plan of reorganization. The Debtors told the Court they require more time to finalize the terms of the plan. The Debtors explained that in addition to their day-to-day operations, their management and employees have been heavily involved in substantial, expedited litigation, in fulfilling reporting requirements imposed by the Bankruptcy Code, in handling operational issues, in negotiating the resolution of claims, and in marketing the structure and terms of an exit financing facility. Headquartered in Avon, Conn., U.S. Energy Biogas Corp., a subsidiary of U.S. Energy Systems Corp. (Nasdaq: USEY) -- http://www.usenergysystems.com/-- develops landfill gas projects in the United States. Formerly known as Zahren Alternative Power Corporation or ZAPCO, the company was formed in May 2001 after ZAPCO's acquisition by U.S. Energy Systems, Inc. Currently, the Debtor owns and operates 23 LFG to energy projects with 52 megawatts of generating capacity. The Debtor and 31 of its affiliates filed separate voluntary chapter 11 petitions on Nov. 29, 2006 (Bankr. S.D.N.Y. Case Nos. 06-12827 through 06-12857). Joseph J. Saltarelli, Esq., at Hunton & Williams represents the Debtors in their restructuring efforts. Dion W. Hayes, Esq., Joseph S. Sheerin, Esq., and Patrick L. Hayden, Esq., at McGuireWoods LLP, represent the Official Committee of Unsecured Creditors. The Debtors listed total assets of $35,472,663 and total debts of $90,250,169 in its schedules. UTIX GROUP: Posts $1.8 Million Net Loss in Quarter Ended Dec. 31 ---------------------------------------------------------------- Utix Group Inc. reported a net loss of $1,876,908 for the first quarter ended Dec. 31, 2006, compared with a net loss of $803,713 for the same period ended Dec. 31, 2005. Net revenues decreased $255,967 to $180,645 in the quarter ended Dec. 31, 2006, from $436,612 for the same period in 2005, primarily due to a decrease in redeemed and expired tickets in movie, golf, and spa tickets sold through retail channels, partially offset by an increase in redeemed and expired ski tickets. The company had a gross loss of $70,030 for the three month period ended Dec. 31, 2006, compared to a gross profit of $220,415 for the three month period ended Dec. 31, 2005. The gross profit in the first quarter of fiscal 2005 was primarily attributable to breakage recognized on prior year retail sales of golf and spa tickets which exceeded the company's historical averages, while the gross loss in the current quarter was attributable to higher costs on ski tickets redeemed, increased fulfillment costs relating to outsourcing, and royalty fees for license and distribution rights. Total operating expenses increased 105% to $1,574,295 as compared to $767,708 for the three-month period ended Dec. 31, 2005. Other expense were $232,583 and $256,420 for the three-month periods ended Dec. 31, 2006, and 2005, respectively. At Dec. 31, 2006, the company's balance sheet showed $4,160,596 in total assets, $3,540,487 in total liabilities, and $620,109 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1d4b Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 22, 2007, Vitale, Caturano & Company Ltd., in Boston, expressed substantial doubt about Utix Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2006. The auditing firm pointed to the company's recurring losses from operations, net working capital and stockholders' deficits. About Utix Headquartered in Burlington, Massachusetts, Utix Group Inc. (OTC BB: UTIX.OB) -- http://www.utix.com/ -- provides gift tickets to retail buyers and corporations that are redeemable at golf courses, ski resorts, spas, and movie theaters in the United States. The company's products consist of recreation products, such as Utix Golf Tickets, SwingPack, and Utix Ski Tickets; and leisure products, including Utix Spa Ticket and Movie Ticket. It distributes its products through prepaid manual plastic gift tickets to corporations and other business users, as well as sells prepaid magnetic strip gift tickets through mass merchandise retail chains. VANTAGEMED CORP: Dec. 31 Balance Sheet Upside-Down by $3.5 Million ------------------------------------------------------------------ VantageMed Corporation's balance sheet as of Dec. 31, 2006, showed $3.5 million in total stockholders' deficit, a result from $1.9 million in total assets and $5.4 million in total liabilities. The company's December 31 balance sheet also showed strained liquidity with $1.8 million in total current assets available to pay $5.3 million in total current liabilities. The company's accumulated deficit as of Dec. 31, 2006, stood at $82.2 million, versus $81.2 million a year earlier. For the year ended Dec. 31, 2006, the company generated total revenues of $11 million and incurred a net loss of $983,000, as compared with total revenues of $15.3 million and a net loss of $4.3 million for the year ended Dec. 31, 2005. Audit Concerns Farber Hass Hurley & McEwen LLP reported that the company has signed a definitive agreement to be acquired by Nightingale Informatix Corporation, pending approval by a majority of the company's stockholders. The auditing firm added that if the agreement is not approved, the several factors, among others, raise substantial doubt about the company's ability to continue as a going concern. The factors pointed by Farber Hass were the company's sustained recurring losses from operations, working capital deficit of $3.6 million, and stockholders deficit of $3.5 million as of Dec. 31, 2006. On Feb. 16, 2007, the company signed a definitive agreement to be acquired by Nightingale of Ontario, Canada. The acquisition, expected to close in the second quarter of 2007, is conditioned upon a majority vote of the common stockholders and other customary conditions. The definitive agreement with Nightingale calls for the company's stockholders to receive a fixed cash price of $0.75 per share. The company had filed materials related to the proposed merger with the Securities and Exchange Commission and mailed the definitive proxy statement for the special stockholders meeting scheduled to take place on April 18, 2007. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d56 About VantageMed Corp. VantageMed Corporation -- http://www.vantagemed.com/-- is a provider of healthcare software products and services to more than 18,000 physician, anesthesiologist and behavioral health providers nationwide. VantageMed's core products include ChartKeeper Computerized Medical Records software, RidgeMark, Northern Health Anesthesia, and Helper family of Practice Management products. All these products are supported by SecureConnect electronic transaction services. Its suite of software products and services automates administrative, financial, clinical and management functions for physicians and other healthcare providers as well as provider organizations. VASOMEDICAL INC: Posts $510,256 Net Loss in Quarter Ended Feb. 28 ----------------------------------------------------------------- Vasomedical Inc. reported a net loss of $510,256 on total revenues of $1,381,501 for the third quarter ended Feb. 28, 2007, compared with a net loss of $671,447 on total revenues of $2,841,821 for the same period 12 months ago. Revenue from equipment sales declined approximately 76% to $432,124 for the three-month period ended Feb. 28, 2007, as compared to $1,807,625 for the same period for the prior year. The decline in equipment sales is due primarily to a 70% decline in the number of equipment shipments and a 28% decrease in average sales prices. Revenue from equipment rental and services for the three-month period ended Feb. 28, 2007, decreased to $949,377 from revenue of $1,034,196 for the same three-month period in the prior year. The decrease in total revenue resulted primarily from a 7% decline in service related revenue, and a 66% decline in rental revenue. Gross profit declined to $780,646 for the three-month period ended Feb. 28, 2007, compared to $1,613,802 for the three-month period ended Feb. 28, 2006, principally due to lower sales volume. Selling, general and administrative expenses decreased $827,485 to $1,024,688 for the three-months ended Feb. 28, 2007, mainly as a result of decreased sales and marketing expenditures reflecting lower sales and marketing personnel and travel, plus reduced market research and advertising costs. Research and development expenses decreased $159,651 primarily attributable to lower new product development spending and reduced spending on clinical trials. At Feb. 28, 2007, the company's balance sheet showed $5,626,633 in total assets, $3,868,799 in total liabilities, and $1,757,834 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Feb. 28, 2007, are available for free at http://researcharchives.com/t/s?1d55 Going Concern Doubt As reported in the Troubled Company Reporter on Sept. 8, 2006, Miller Ellin & Company LLP, in New York, expressed substantial doubt about Vasomedical Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended May 31, 2006. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. About Vasomedical Inc. Vasomedical Inc. (OTC BB: VASO.OB) -- http://www.vasomedical.com/ -- develops, manufactures and markets EECP(R) therapy systems to deliver its proprietary form of enhanced external counterpulsation therapy. EECP(R) therapy is a noninvasive, outpatient therapy used in the treatment of ischemic cardiovascular diseases, currently used to manage chronic stable angina and heart failure. VERIDIEN CORP: Malone & Bailey Expresses Going Concern Doubt ------------------------------------------------------------ Malone & Bailey PC in Houston, Texas, expressed substantial doubt on Veridien Corporation's ability to continue as a going concern after auditing the company's financial statement for the year ended Dec. 31, 2006. The auditing firm stated that the company has suffered recurring losses from operations, has negative cash flow from operations, and has an accumulated deficit. The company incurred a net loss of 2.8 million on revenue of $1.9 million for the year 2006, as compared with a net loss of $2 million on revenue of $1 million for the comparable period in year 2005. As of Dec. 31, 2006, the company listed total assets of $2.8 million, total liabilities of $1.7 million, and minority interest of $100,790, resulting to total stockholders' equity of $993,533. The company's December 31 balance sheet also showed strained liquidity with total current assets of $1.4 million available to pay total current liabilities of $1.6 million. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d57 About Veridien Headquartered in Pinellas Park, Florida, Veridien Corporation (OTC BB: VRDE) -- http://www.vrde.com/-- is a life sciences company that develops, manufactures, distributes, and sells disinfectants, antiseptics, and sterilants in the U.S. and Canada. VI-JON INC: Moody's Rates New $210 Million Senior Loan at B2 ------------------------------------------------------------ Moody's Investors Service changed the outlook for Vi-Jon, Inc.'s (formerly known as VJCS Acquisition, Inc.) long term ratings, including its B2 corporate family rating, to positive from stable. This rating action reflects the early integration success that Vi- Jon has achieved since completing its July 2006 merger with Cumberland Swan as well as the continued stable operating performance and market position of the company. At the same time, Moody's also assigned a B2 rating to the companies' new $210 million senior secured tranche B term loan credit facility which is being used to refinance the companies' $153 million term loan B and $55 million senior subordinated loans. Moody's also downgraded the ratings of the company's $30 million senior secured revolving credit facility to B2 from B1 reflecting the change in the company's capital structure which result in a higher proportion of senior secured debt. In accordance with Moody's Loss Given Default Methodology, a B2 rating for the senior secured revolving credit facility is appropriate. The final maturity of the revolving credit facility has been extended to April 2013. Ratings for the existing term loan B and senior subordinated loans will be withdrawn upon completion of the proposed refinancing. Final ratings are subject to Moody's review of final documentation. "Vi-Jon's B2 corporate family rating is constrained by the company's small relative scale, its reliance on a few key customers for more than 60% of its revenue, and its relatively short history as a unified company," says Moody's Vice President Janice Hofferber. "Nevertheless, the ratings are supported by the prospect for growth in the private label personal care category given its long-standing relationships with key retailers, its strong operational and manufacturing capabilities as well as its proven management track record." The positive outlook reflects the early integration success and stable operating performance the company has demonstrated since completing its July 2006 merger with Cumberland Swan. It also considers Moody's expectation that the company remains on track to fully achieve it annualized merger synergies and continue to sustain its strong growth rate and market share trends. Ratings affirmed include: - Corporate family rating of B2, - Probability of default rating of B2 Ratings assigned include: - $210 million senior secured tranche B term loan facility due April 2014 at B2 (LGD 3, 35%), Ratings downgraded include: - $30 million senior secured revolving credit to B2 (LGD3, 35%) from B1 (LGD3, 38%). Ratings to be withdrawn upon completion of the refinancing include: - $156.2 million senior secured term loan B due 2013 at B1 (LGD 3, 38%); - $55 million senior subordinated loans due 2013 at Caa1 (LGD5, 88%). Rating outlook is positive. The last rating action regarding Vi-Jon was on Sept. 21, 2006, when Moody's upgraded the company's senior secured bank facilities to B1 from B2 reflecting the implementation of Moody's new Probability-of-Default and Loss-Given-Default rating methodology for the US consumer products sector. St. Louis-based Vi-Jon, Inc. is a private label manufacturer of personal care products with more than 300 different formulations and more than 5,000 products across a wide spectrum of categories. Vi-Jon is the combination of the July 2006 merger of two leading personal care private label manufacturers, Vi-Jon Laboratories, Inc. and Cumberland Swan Holdings, Inc. Vi-Jon is the direct subsidiary of VJCS Holdings, Inc., which in turn is owned by Berkshire Partners and other co-investors including management. VIASYSTEMS INC: Earns $202.4 Million in Year Ended December 31 -------------------------------------------------------------- Viasystems Inc. earned $202.4 million on net sales of $735 million for the year ended Dec. 31, 2006, as compared with a net loss of $81.2 million on net sales of $652.8 million for the year ended Dec. 31, 2005. Cost of goods sold exclusive of items shown separately in the consolidated statements of operations for the year ended Dec. 31, 2006, was $601.2 million. Selling, general and administrative costs were $56.3 million for the year ended Dec. 31, 2006, and decreased by $9.7 million, as compared with the year ended Dec. 31, 2005. Depreciation expense for the year ended Dec. 31, 2006, was $45.4 million, including $39.2 million related to the company's Printed Circuit Boards segment and $6.2 million related to our Assembly segment. The company reported net restructuring and impairment income of $4.9 million for the year ended Dec. 31, 2006, as compared with net expenses in 2005 of $27.6 million. Interest expense net of interest income for the year ended Dec. 31, 2006, was $30.7 million, as compared with $40.8 million in 2005. Income tax expense of $18.5 million and $3.9 million, respectively, for the years ended Dec. 31, 2006, and 2005. The company's balance sheet as of Dec. 31, 2006, showed total assets of $625.9 million and total liabilities of $428 million, resulting to total stockholders' equity of $197.9 million. The company cut its accumulated deficit to $2.2 billion as of Dec. 31, 2006, from $2.4 billion as of Dec. 31, 2005. Discontinued Operations On May 1, 2006, the company sold for gross cash proceeds of $320 million its wire harness business to Electrical Components International Holdings Company, a newly formed affiliate of Francisco Partners LP, a private equity firm. Net cash proceeds reported in the accompanying consolidated statement of cash flows for the year ended Dec. 31, 2006, of $307,927 reflect reductions of the gross proceeds for: i) cash of $2,999 on deposit in bank accounts of the disposed business on the date of the transaction; ii) a $2,419 contractual purchase price adjustment agreed and paid to the acquirer in June 2006; and iii) transaction costs of $6,655 paid in 2006 related to the disposal. One further contractual purchase price adjustment, which was accrued at the time of the disposal, is estimated to be about $2 million and will be paid to the Electrical Components before May 1, 2007. In addition, the company is obligated to indemnify ECI for certain other contingent liabilities, should they materialize, pursuant to the purchase and sale agreement between the company and ECI. For the year ended Dec. 31, 2006, the company recognized a net gain on the sale of the company's discontinued wire harness operations of $211.2 million. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1d58 About Viasystems Inc. Headquartered in St. Louis, Missouri, Viasystems Inc. -- http://www.viasystems.com/-- a subsidiary of Viasystems Group Inc., provides electronics manufacturing services to original equipment manufacturers, primarily in the telecommunications, networking, automotive, consumer, industrial and computer industries. * * * Viasystems Inc. $200 million Senior Subordinated Notes carries Moody's Investors Service's Caa1 rating. The company's debentures also carry Moody's B3 Corporate Family Rating and LGD5 rating suggesting note holders will experience a 78% loss in case of default. VOLT INFORMATION: Earns $727,000 in Quarter Ended January 28 ------------------------------------------------------------ Volt Information Sciences Inc. reported net income of $727,000 for the first quarter ended Jan. 28, 2007, compared with a net loss of $377,000 for the fiscal 2006 first quarter. Net sales for the fiscal 2007 quarter decreased slightly to $548.8 million, compared to $549.5 million in last year's comparable quarter. The decrease in the current quarter's net sales resulted from a decrease in Telecommunications Services of $18.7 million, partially offset by increases in Staffing Services of $9.3 million, Computer Systems of $5.2 million and Telephone Directory of $1.8 million. The company's operating segments reported an operating profit of $12.5 million in the current quarter, a decrease of $1.1 million, or 8%, from the comparable quarter of fiscal 2006. The change in operating profit was due to the decreased operating profits of the Telecommunications Services segment of $1.5 million, and the Telephone Directory segment of $100,000, partially offset by an increase in the Staffing Services segment of $500,000. General corporate expenses decreased $1.6 million, or 14%, to $10.3 million from $11.9 million in the first quarter of fiscal 2006, primarily due to a reduction in costs incurred relating to compliance with the Sarbanes-Oxley Act. Income before minority interest and income taxes increased by $763,000, or 175%, compared to the 2006 comparable quarter. The first quarter of fiscal 2006 included a charge for minority interest of $1 million; such minority interest was repurchased from Nortel Networks Inc. on Dec. 29, 2005. Commenting on the results for the first quarter, Mr. Steven A. Shaw, president and chief executive officer of Volt, stated "Tight control of general and administrative expenses, including year two savings on Sarbanes Oxley and related audit costs, enabled the company to post improved year over year results in what is traditionally our flat quarter of the year. This year and last year we reported marked improvement in controlling our workers' compensation and general insurance costs. We believe that controlling the cost of service delivery will make us more efficient and more competitive." Cash and cash equivalents, excluding restricted cash, was $71.8 million at the end of the quarter. At Jan. 28, 2007, the company had sold a participating interest in accounts receivable of $60 million under its $200 million accounts receivable securitization program and had the ability to finance an additional $140 million under the facility. In addition, the company may borrow under a $40 million revolving secured credit facility and the company's wholly owned subsidiary, Volt Delta Resources may borrow under a separate $70 million revolving secured credit facility. The $40 million revolving credit facility terminates in April 2008 and the $70 million revolving secured credit facility terminates in December 2009, unless extended. At Jan. 28, 2007, Volt Delta had borrowed 38.9 million under the $70 million credit facility. At Jan. 28, 2007, the company's balance sheet showed $740.3 million in total assets, $414 million in total liabilities, and $326.3 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Jan. 28, 2007, are available for free at http://researcharchives.com/t/s?1d3d About Volt Information Volt Information Sciences Inc. (NYSE: VOL) -- http://www.volt.com/ -- provides national Staffing Services and Telecommunications and Information Solutions with a Fortune 100 customer base. Operating through a network of over 300 Volt Services Group branch offices, the Staffing Services segment fulfills IT and other technical, commercial and industrial placement requirements of its customers, on both a temporary and permanent basis. The Telecommunications and Information Solutions businesses, which include the Telecommunications Services, Computer Systems and Telephone Directory segments, provide complete telephone directory production and directory publishing; a full spectrum of telecommunications construction, installation and engineering services; and advanced information and operator services systems for telephone companies. * * * Volt Information Sciences' carries Fitch Ratings 'BB-' Issuer Default Rating. * Antitrust Practitioner Charles Rule Joins Cadwalader Wickersham ----------------------------------------------------------------- Cadwalader, Wickersham & Taft LLP disclosed Monday that noted antitrust lawyer Charles Rule, Esq., will join the firm as the head of the firm's antitrust practice. Mr. Rule will be resident in Cadwalader's Washington, D.C. office. Mr. Rule, the former head of the antitrust practice at Fried, Frank, Harris, Shriver and Jacobson LLP, has represented a number of the world's largest corporations in connection with private antitrust litigation, major transactions and civil and criminal investigations by antitrust authorities around the world. Cadwalader Chairman Robert O. Link, Jr. stated, "Issues of competitive risk come into play whether a company is buying, selling or merging. Broadening the foundation from which we can offer antitrust counseling and compliance and litigation services is a key component of extending our services to a large segment of our client base. We look forward to working with Rick to exploit synergies, enhance services for our clients and take advantage of new opportunities." Mr. Rule noted that, "Cadwalader provides a tremendous platform for my practice. The firm's Litigation and Corporate Departments are outstanding and will complement my practice well. I look forward to working with the firm's impressive list of diverse clients, from prominent financial institutions to leading corporations. Together with my new colleagues at Cadwalader, I believe we can provide uniquely capable, knowledgeable and experienced service. "In particular, with the convergence of the U.S. and European markets and the emergence of Chinese businesses in international transactions, clients now more than ever need a forward-thinking legal team to help them navigate the maze of conflicting rules and regulations. With Cadwalader offices in each of these key regions, I look forward to helping clients by providing the cross- border capacity and global insight they need." Among Mr. Rule's past representations include: Microsoft Corporation; US Airways Inc.; Northrop Grumman Corporation; Goldman, Sachs & Co.; the National Basketball Association; Bacardi & Company Ltd.; and Goodyear Tire and Rubber Co. He was a key member of the team that negotiated on behalf of Microsoft a conclusion to the historic antitrust lawsuit that the U.S. Justice Department and a number of states pursued against the company. He has also been involved in the antitrust clearance of some of the highest-profile mergers in recent years, including Exxon Corporation's merger with Mobil Oil Corporation and MGM Mirage in its acquisition of Mandalay Bay. He currently represents Delta & Pine Land Co. in its acquisition of Monsanto. Mr. Rule joined Fried, Frank, Harris, Shriver & Jacobson LLP in 2001, following his tenure as a partner at the Washington law firm of Covington & Burling where he was chairman of the firm's antitrust and trade regulation practice group. Prior to private practice, he held various positions with the Antitrust Division of the U.S. Justice Department, including serving as William Baxter's special assistant and as acting head of the Division, before, in 1986, becoming the youngest person ever to be confirmed to the position of Assistant Attorney General in charge of the Antitrust Division. "Rick's rich and varied career at the DOJ and in private practice has resulted in his national reputation for his technical excellence, legal insight and business acumen. His experience fills a strategic niche in our Litigation Department, adding a level of capability that allows us to better serve clients with competition matters," stated Gregory A. Markel, Chairman of the firm's Litigation Department. A summa cum laude graduate of Vanderbilt University in 1978, Mr. Rule received his J.D. from the University of Chicago in 1981. Following law school, he served as a clerk for Chief Judge Daniel M. Friedman of the former United States Court of Claims (now the Court of Appeals for the Federal Circuit). He is listed among the world's leading antitrust lawyers by a variety of publications, including Chambers Global: The World's Leading Lawyers for Business (2006 edition) and Washington's Legal Times. He has written extensively and is a frequent lecturer on antitrust and regulatory topics. A former distinguished adjunct professor of law at American University's Washington College of Law, Mr. Rule is a member of the Advisory Board of BNA's Antitrust & Trade Regulation Report; a member of the advisory boards of the Washington Legal Foundation and the Landmark Legal Foundation; sits on the Board of Directors of the Children's Law Center; and serves on the Visiting Committee of the University of Chicago Law School. He is admitted to the bar in the District of Columbia. About Cadwalader, Wickersham & Taft LLP Cadwalader, Wickersham & Taft LLP -- http://www.cadwalader.com/-- established in 1792, is an international law firm, with offices in New York, London, Charlotte, Washington and Beijing. Cadwalader serves a diverse client base, including many of the world's top financial institutions, undertaking business in more than 50 countries in six continents. The firm offers legal expertise in antitrust, banking, business fraud, corporate finance, corporate governance, environmental, financial restructuring and reorganizations, healthcare, insurance and reinsurance, litigation, mergers and acquisitions, private client, private equity, real estate, securities and financial institutions regulation, securitization, structured finance, and tax. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Personnel Issues in Bankruptcy University Club, Portland, Oregon Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Program on Fraud and Forensic Investigations Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fundamentals of Turnaround Management Brisbane, Australia Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Personnel Issues in Bankruptcy University Club, Portland, Oregon Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast: Program on Fraud and Forensic Investigations Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Tyson's Corner Marriott, Vienna, Virginia Contact: 215-657-5551 or http://www.turnaround.org/ April 19-20, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Eighth Annual Conference on Healthcare Transactions Successful Strategies for Mergers, Acquisitions, Divestitures, and Restructurings The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting Social TBA, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Operational Turnaround Management Renaissance Hotel, Syracuse, New York Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fraud and Forensic Investigation Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Completing the Turnaround Brisbane, Australia Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Nuts & Bolts of Buying and Selling Distressed Companies University Club, Chicago, Illinois Contact: http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ April 24, 2007 BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Contact: 240-629-3300; http://www.beardaudioconferences.com/ April 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Why Prospects Become Clients" Mark Fitzgerald, President of Sales Training Institute Inc Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Jacksonville Zoo Turnaround University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing Fox Hopyard Golf Club, East Haddam, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spa Outing Mohegan Sun, Uncasville, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ April 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Mohegan Sun, Uncasville, Connecticut Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, Pennsylvania Contact: http://www.ali-aba.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting - Working Effectively with the Media to Create Publicity for Your Business Contact: http://www.turnaround.org/ April 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Washington University, St. Louis, Missouri Contact: http://www.turnaround.org/ April 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Equity Sponsor Panel Breakfast Westin Buckhead, Atlanta, Georgia Contact: http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Organization of Women Visit King Tut Exhibit Franklin Institute, Philadelphia, Pennsylvania Contact: 215-657-5551 or www.turnaround.org/ May 2-4, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Washington University, Arizona Contact: http://www.turnaround.org/ May 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton US Custom House, SDNY New York, New York Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, New York Contact: http://www.abiworld.org/ May 14-16, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual TMA Regional Conference - Texas Hyatt Regency Resort & Spa Lost Pines, Texas Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, Colorado Contact: http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ May 17-18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Great Lakes Regional Conference Renaissance Quail Hollow Resort, Painesville, Ohio Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Valuation / Sale of the Distressed Business Athletic Club, Seattle, Washington Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Networking Lunch TBD, Arizona Contact: 623-581-3597 or www.turnaround.org/ May 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Kansas City, Missouri Contact: http://www.turnaround.org/ May 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Annual Golf Outing TBD, Long Island, New York Contact: 631-251-6296 or http://www.turnaround.org/ May 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Hedge Funds Standard Club, Chicago, Illinois Contact: http://www.turnaround.org/ May 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Calaloo Caf,, Morristown, New Jersey Contact: 908-575-7333 or www.turnaround.org/ May 24-25, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Fourth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London, UK Contact: 800-726-2524; http://renaissanceamerican.com/ May 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona and RMA Joint Meeting Hotel Valley Ho, Scottsdale, Arizona Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, New York Contact: http://www.frallc.com/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting and Casino Night Mayfair Farms, West Orange, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Speaker Series E&Y Tower, Calgary, Alberta Contact: http://www.turnaround.org/ May 31 - June 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2nd Annual TMA Southeast Regional Conference Marriott Resort at Grande Dunes Myrtle Beach, South Carolina Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, Nevada Contact: http://http://www.airacira.org/ June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa Atlantic City, New Jersey Contact: http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, Illinois Contact: http://www.airacira.org/ June 7-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mealey's Asbestos Bankruptcy Conference Intercontinental Hotel, Chicago, Illinois Contact: http://www.turnaround.org/ June 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth Arizona Chapter Meeting Biltmore Hotel, Phoenix, Arizona Contact: http://www.turnaround.org/ June 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Economic Update at the 1/2 Year Mark University Club, Portland, Oregon Contact: http://www.turnaround.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ June 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Clarion Hotel, Princeton, New Jersey Contact: 908-575-7333 or www.turnaround.org/ June 21-22, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Tenth Annual Conference on Corporate Reorganizations Successful Strategies for Restructuring Troubled Companies The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ June 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, South Carolina Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ July 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Golf Outing Raritan Valley Country Club, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 9-10, 2007 IWIRC Orlando, Florida IWIRC Annual Fall Conference Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495 or http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver Contact: 206-223-5495 or www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Nov. 29, 2007 TMA Arizona Chapter Meeting TURNAROUND MANAGEMENT ASSOCIATION Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495 or http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, Nevada Contact: http://www.ncbj.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Contact: http://www.insol.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, Louisiana Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***