TCR_Public/070526.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

              Saturday, May 26, 2007, Vol. 11, No. 124

                             Headlines

ACCEPTANCE INSURANCE: Files April 2007 Operating Report
ALLIED HOLDINGS : March 31 Balance Sheet Upside-Down by $215MM
CALPINE CORP: Posts $216 Million Net Loss in March 2007
FEDERAL-MOGUL: April 30 Balance Sheet Upside-Down by $1.6 Billion
GRANITE BROADCASTING: Posts $2.5 Million Net Loss in April 2007

MORTGAGE LENDERS: Reports $13.4 Million Net Loss in March 2007
VESTA INSURANCE: Florida Select Files April 2007 Operating Report
VESTA INSURANCE: Gaines Posts $188,192 Net Loss in April 2007

                             *********

ACCEPTANCE INSURANCE: Files April 2007 Operating Report
-------------------------------------------------------
Acceptance Insurance Companies Inc. filed its monthly operating
report for April 2007 with the United States Bankruptcy Court
for the District of Nebraska on May 17, 2007.

The Debtor reported a net income of $20,306 and revenue of $7,290
for the month ended April 30, 2007.  

At April 30, 2007, Acceptance Insurance Companies Inc.'s balance
sheet showed:

        Total Current Assets                    $1,678,568
        Total Assets                           $35,042,542
        Total Liabilities                     $138,189,723
        Total Shareholders' Deficit          ($103,147,181)

A full-text copy of Acceptance Insurance Companies Inc.'s April
2007 Monthly Operating Report is available at no charge at:

               http://ResearchArchives.com/t/s?2032

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.  

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates --
Acceptance Insurance Services Inc. and American Agrisurance Inc.
-- filed separate chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq., at
Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  When the Debtor filed for protection from its creditors,
it listed $33,069,446 in total assets and $137,120,541 in total
debts.  The Debtors' exclusive period to file a plan expires on
Aug. 9, 2007.


ALLIED HOLDINGS : March 31 Balance Sheet Upside-Down by $215MM
--------------------------------------------------------------

                     Allied Holdings, Inc.
             Unaudited Consolidated Balance Sheet
                     As of March 31, 2007
                        (In Thousands)

                            Assets

Current Assets:
       Cash and cash equivalents                        $26,278
       Receivables, net of allowances                    46,978
       Related party receivables                         19,807
       Inventories                                        4,767
       Deferred income taxes                              1,907
       Prepayments and other current assets              20,484
                                                      ---------
          Total current assets                          120,221

Property and equipment, net                             128,933
Goodwill, net                                             3,545
Other noncurrent assets                                  32,883
Investment in related parties                            19,990
                                                      ---------
TOTAL ASSETS                                           $305,572
                                                      =========

Liabilities and Stockholders' Deficit

Current liabilities not subject to compromise:
        Borrowings under Canadian revolving
           credit facility                                 $372
        DIP facility                                    205,000
        Accounts and notes payable                       29,304
        Accrued liabilities                              54,004
                                                      ---------
          Total current liabilities                     288,680

Long-term liabilities not subject to compromise
        Postretirement benefits                          14,221
        Deferred income taxes                             1,926
        Other long-term liabilities                      17,286
                                                      ---------
          Total long-term liabilities                    33,433

Liabilities subject to compromise                       198,965
Stockholders' deficit                                  (215,506)
                                                      ---------
       Total liabilities & stockholders' deficit       $305,572
                                                      =========

                     Allied Holdings, Inc.
        Unaudited Consolidated Statement of Operations
              For the Month Ended March 31, 2007
                        (In Thousands)

Revenues                                                $75,669

Operating Expenses
       Salaries, Wages & Fringe benefits                 37,028
       Operating supplies & expenses                     15,921
       Purchased transportation                           8,716
       Insurance & claims                                 3,570
       Operating tax & licenses                           2,335
       Depreciation & amortization                        2,771
       Rents                                                695
       Communications & utilities                           724
       Other operating expenses                           1,001
       Loss on disposal of operating assets, net             --
                                                      ---------
          Total Operating Expenses                       72,761
                                                      ---------
          Operating Income (Loss)                         2,908

Other Income (Expense)
       Interest expense                                  (3,636)
       Investment income                                      4
       Foreign exchange gains, net                          227
       Equity in earnings of subsidiaries                   428
                                                      ---------
                                                         (2,977)
                                                      ---------
Loss before reorganization items and income taxes           (69)
Reorganization items                                     (1,897)
                                                      ---------
Loss before income taxes                                 (1,966)
Income tax benefit                                            -
                                                      ---------
NET LOSS                                                ($1,966)
                                                      =========

The Debtors disclose cash disbursements totaling $6,491,125
during March 2007.

                       About Allied Holdings

Based in Decatur, Georgia, Allied Holdings Inc. (AMEX: AHI, other
OTC: AHIZQ.PK) -- http://www.alliedholdings.com/-- and its
affiliates provide short-haul services for original equipment
manufacturers and provide logistical services.  The company and 22
of its affiliates filed for chapter 11 protection on July 31, 2005
(Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537).  Jeffrey W.
Kelley, Esq., at Troutman Sanders, LLP, represents the Debtors in
their restructuring efforts.  Henry S. Miller at Miller Buckfire &
Co., LLC, serves as the Debtors' financial advisor.  Anthony J.
Smits, Esq., at Bingham McCutchen LLP, provides the Official
Committee of Unsecured Creditors with legal advice and Russell A.
Belinsky at Chanin Capital Partners, LLC, provides financial
advisory services to the Committee.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.  (Allied Holdings Bankruptcy News,
Issue No. 50; Bankruptcy Creditors' Service, Inc.
http://bankrupt.com/newsstand/or 215/945-7000)

                            Plan Update

The Court confirmed the Debtors' Joint Plan of Reorganization with
the Yucaipa Entities and Teamsters National Automobile
Transportation Industry Negotiating Committee on May 12, 2007.
The Plan Proponents expect their Joint Plan to become effective on
June 1, 2007.


CALPINE CORP: Posts $216 Million Net Loss in March 2007
-------------------------------------------------------

                       Calpine Corporation
             Consolidated Condensed Balance Sheet
                       As of March 31, 2007

                              ASSETS
Current assets:
    Cash and cash equivalents                   $1,505,000,000
    Accounts receivable, net                       742,000,000
    Inventories                                    103,000,000
    Margin deposits & other prepaid expense        502,000,000
    Restricted cash, current                       301,000,000
    Current derivative assets                      220,000,000
    Other current assets                            80,000,000
                                                --------------
Total current assets                             3,453,000,000

    Property, plant and equipment, net          13,419,000,000
    Restricted cash, net of current portion        192,000,000
    Investments                                    167,000,000
    Long-term derivative assets                    340,000,000
    Other assets                                 1,023,000,000
                                                --------------
Total assets                                   $18,594,000,000
                                                ==============

         LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
    Accounts payable                              $566,000,000
    Accrued interest payable                       219,000,000
    Debt, current                                5,000,000,000
    Current derivative liabilities                 354,000,000
    Income taxes payable                            36,000,000
    Other current liabilities                      333,000,000
                                                --------------
Total current liabilities                        6,508,000,000

    Debt, net of current portion                 3,123,000,000
    Deferred income taxes, net                     601,000,000
    Long-term derivative liabilities               479,000,000
    Long-term liabilities                          301,000,000
                                                --------------
Total liabilities not subject to compromise     11,012,000,000
Liabilities subject to compromise               14,930,000,000

Minority interests                                 269,000,000
Stockholders' equity (deficit):
    Common stock                                     1,000,000
    Additional paid-in capital                   3,268,000,000
    Additional paid-in capital, loaned shares      117,000,000
    Additional paid-in capital, returnable shares (117,000,000)
    Accumulated deficit                        (10,837,000,000)
    Accumulated other comprehensive loss           (49,000,000)
                                                --------------
Total stockholders' deficit                     (7,617,000,000)
                                                --------------
Total liabilities and stockholders' deficit    $18,594,000,000
                                                ==============

                       Calpine Corporation
          Consolidated Condensed Statement of Operations
                 For the period ending March 31, 2007

Revenue:
    Electricity and steam revenue                 $404,000,000
    Sales of purchased power and gas
        for hedging and optimization               150,000,000
    Mark-to-market activities, net                 (37,000,000)
    Other revenue                                   18,000,000
                                                --------------
    Total revenue                                  535,000,000

Cost of revenue:
    Plant operating expense                         70,000,000
    Purchased power and gas expense
        for hedging and optimization               140,000,000
    Fuel expense                                   281,000,000
    Depreciation and amortization expense           40,000,000
    Operating plant impairments                              0
    Operating lease expense                          5,000,000
    Other cost of revenue                           15,000,000
                                                --------------
Total cost of revenue                              551,000,000

Gross profit (loss)                                (16,000,000)
Equipment, development project & other impairments   2,000,000
Sales, general and administrative expense           12,000,000
Other operating expenses                                     0
                                                --------------
Income (loss) from operations                      (30,000,000)
Interest expense                                   101,000,000
Interest (income)                                   (7,000,000)
Minority interest expense                                    0
Other (income) expense, net                         (4,000,000)
                                                --------------
Income before reorganization items
    and provision for income taxes                (120,000,000)
Reorganization items                               111,000,000
                                                --------------
Income before provision for income taxes          (231,000,000)
Provision (benefit) for income taxes               (15,000,000)
                                                --------------
Net income (loss)                                ($216,000,000)
                                                ==============

                     About Calpine Corporation

Headquartered in San Jose, California, Calpine Corporation
(OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies
customers and communities with electricity from clean, efficient,
natural gas-fired and geothermal power plants.  Calpine owns,
leases and operates integrated systems of plants in 21 U.S. states
and in three Canadian provinces.  Its customized products and
services include wholesale and retail electricity, gas turbine
components and services, energy management and a wide range of
power plant engineering, construction and maintenance and
operational services.

The company previously produced a portion of its fuel consumption
requirements from its own natural gas reserves.  However, in July
2005, the company sold substantially all of its remaining domestic
oil and gas assets to Rosetta Resources Inc.

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. 49; 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.


FEDERAL-MOGUL: April 30 Balance Sheet Upside-Down by $1.6 Billion
-----------------------------------------------------------------

                Federal-Mogul Global, Inc., et al.
                     Unaudited Balance Sheet
                       As of April 30, 2007
                          (In millions)

                              Assets

Cash and equivalents                                      $69.8
Accounts receivable                                       648.3
Inventories                                               413.6
Deferred taxes                                            192.3
Prepaid expenses and other current assets                  86.5
                                                       --------
Total current assets                                    1,410.5

Summary of Unpaid Postpetition Debits                     (33.2)
Intercompany Loans Receivable (Payable)                 1,662.6
                                                       --------
Intercompany Balances                                   1,629.4

Property, plant and equipment                             787.8
Goodwill                                                  930.4
Other intangible assets                                   343.2
Insurance recoverable                                     870.8
Other non-current assets                                  522.1
                                                       --------
Total Assets                                           $6,494.2
                                                       ========

               Liabilities and Shareholders' Equity

Short-term debt                                          $418.0
Accounts payable                                          228.9
Accrued compensation                                       58.8
Restructuring and rationalization reserves                 18.5
Current portion of asbestos liability                         -
Interest payable                                            4.4
Other accrued liabilities                                 252.8
                                                       --------
Total current liabilities                                 981.6

Long-term debt                                                -
Post-employment benefits                                  736.7
Other accrued liabilities                                 547.4
Liabilities subject to compromise                       5,822.0

Shareholders' equity:
   Preferred stock                                      1,050.6
   Common stock                                           658.1
   Additional paid-in capital                           7,988.2
   Accumulated deficit                                (11,434.3)
   Accumulated other comprehensive income                 143.9
   Other                                                      -
                                                       --------
Total Shareholders' Equity                             (1,593.4)
                                                       --------
Total Liabilities and Shareholders' Equity             $6,494.2
                                                       ========

                Federal-Mogul Global, Inc., et al.
                Unaudited Statement of Operations
                For the Month Ended April 30, 2007
                          (In millions)

Net sales                                                $269.2
Cost of products sold                                     217.8
                                                       --------
Gross margin                                               51.5

Selling, general & administrative expenses                (42.4)
Amortization                                               (1.2)
Reorganization items                                      (11.0)
Interest expense, net                                     (16.4)
Other expense, net                                         18.0
                                                       --------
Earnings before Income Taxes                               (1.6)

Income Tax (Expense) Benefit                               (0.4)
                                                       --------
Earnings before cumulative effect of change
   in accounting principle                                 (2.0)
                                                       --------
Net Earnings (loss)                                       ($2.0)
                                                       ========

                Federal-Mogul Global, Inc., et al.
                Unaudited Statement of Cash Flows
                For the month ended April 30, 2007
                          (In millions)

Cash Provided From (Used By) Operating Activities:
   Net earning (loss)                                     ($2.0)
Adjustments to reconcile net earnings (loss) to net cash:
   Depreciation and amortization                           13.1
   Adjustment of assets held for sale and
      other long-lived assets to fair value                 0.8
   Asbestos charge                                            -
   Summary of unpaid postpetition debits                      -
   Cumulative effect of change in acctg. principle            -
   Change in post-employment benefits                     (17.3)
   Decrease (increase) in accounts receivable             (10.1)
   Decrease (increase) in inventories                       7.0
   Increase (decrease) in accounts payable                 (4.9)
   Change in other assets & other liabilities             (23.1)
   Change in restructuring charge                             -
   Refunds (payments) against asbestos liability              -
                                                       --------
Net Cash Provided From Operating Activities               (36.4)

Cash Provided From (Used By) Investing Activities:
   Expenditures for property, plant & equipment            (0.3)
   Proceeds from sale of property, plant & equipment          -
   Proceeds from sale of businesses                           -
   Business acquisitions, net of cash acquired                -
   Other                                                      -
                                                       --------
Net Cash Provided From (Used By) Investing Activities      (0.3)

Cash Provided From (Used By) Financing Activities:
   Increase (decrease) in debt                             46.0
   Sale of accounts receivable under securitization           -
   Dividends                                                  -
   Other                                                    0.7
                                                       --------
Net Cash Provided From Financing Activities                46.7

Increase (Decrease) in Cash and Equivalents                10.0

Cash and equivalents at beginning of period                59.8
                                                       --------
Cash and equivalents at end of period                     $69.8
                                                       ========

                  About Federal-Mogul Corporation

Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some $6 billion.  Federal-Mogul also has
operations in Mexico and the Asia Pacific Region, which includes,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.

The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582).  Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed $10.15 billion in assets and
$8.86 billion in liabilities.  Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.

On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003.  They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan.  On July 28, 2004, the
District Court approved the Disclosure Statement.  The estimation
hearing began on June 14, 2005.  They then submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007.  The confirmation hearing is set for June 8, 2007.
(Federal-Mogul Bankruptcy News, Issue No. 137; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).


GRANITE BROADCASTING: Posts $2.5 Million Net Loss in April 2007
---------------------------------------------------------------

                 Granite Broadcasting Corporation
          Unaudited Condensed Consolidated Balance Sheet
                       As of April 30, 2007

ASSETS

Current assets:
    Cash and cash equivalents                         $31,534,498
    Restricted cash equivalents                         1,034,678
    Accounts receivable, net                           19,640,593
      less allowance for doubtful accounts
      of $465,465
    Current portion of film contract rights             6,238,051
    Other current assets                                9,016,187
                                                     ------------
      Total current assets                             67,464,007

    Property and equipment, net                        54,442,611
    Film contract rights, net                           8,041,398
      of current portion
    Other non current assets                              472,067
    Deferred financing fees, less
      accumulated amortization
      of $11,349,566                                    8,833,731
    Intangible assets, net                            298,834,782
                                                     ------------
    Total Assets                                     $438,088,596
                                                     ============

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities:
    Accounts Payable                                   $1,021,557
    Other accrued liabilities                          13,169,774
    Current portion of film contract
      rights payable                                    6,626,945
    Current portion of long-term debt                   2,827,555
    Other current liabilities                           3,334,996
                                                     ------------
      Total current liabilities not
      subject to compromise                            26,980,827

    Long-term debt, net of current portion             22,288,893
    Film contract rights payable, net of               13,779,392
      current portion
    Deferred tax liability                             50,063,012
    Other non current liabilities                       3,860,697
                                                     ------------
      Total liabilities not subject                   116,972,821
      to compromise
    Liabilities subject to compromise                 519,699,617

    Redeemable preferred stock                        199,546,412
    Accrued dividends on redeemable
      preferred stock                                 120,003,907

Stockholders' deficit:
    Common stock                                          199,572
    Additional paid-in capital                            503,697
    Accumulated deficit                              (517,961,755)
    Treasury stock, at cost                              (875,675)
                                                     ------------
      Total stockholders' deficit                    (518,134,161)
                                                     ------------
Total liabilities and stockholders' deficit         $438,088,596
                                                     ============

                 Granite Broadcasting Corporation
     Unaudited Condensed Consolidated Statement of Operations
             For the Period from April 1 to 30, 2007

Net revenues                                          $9,422,378

Station operating expenses                             7,322,145
Corporate expense                                        805,091
Non-cash compensation expense                              5,593
Depreciation                                             573,215
Amortization of intangible assets                        284,426
                                                     ------------
    Operating income                                      431,908

Other expenses (income):
    Interest expense                                    1,101,388
    Interest income                                        (4,202)
    Non-cash interest expense                             214,349
    Other                                                  71,875
                                                     ------------
Loss before reorganization items                        (951,502)

    Reorganization items                                1,501,611
                                                     ------------
Net loss                                             ($2,453,113)
                                                     ============

                 Granite Broadcasting Corporation
     Unaudited Condensed Consolidated Statement of Cash Flows
              For the Period from April 1 to 30, 2007

Cash flows from operating activities:
Net loss                                             ($2,453,113)

Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
    Amortization of intangible assets                     284,426
    Depreciation                                          573,215
    Non-cash compensation expense                           5,593
    Non-cash interest expense                             214,349
    Film amortization                                     944,074
Change in assets and liabilities:
    Decrease in accounts receivable                       182,424
    Increase in accrued liabilities                     1,310,672
    Increase in accounts payable                          225,806
    Decrease in film contract rights and
      other assets                                        252,643
    Decrease in film contract rights payable
      and other liabilities                              (509,518)
                                                     ------------
      Net cash provided by operating
      activities                                        1,030,571
                                                     ------------
Cash flows from investing activities:
    Capital expenditures                                 (472,395)
                                                     ------------
      Net cash used in investing
      activities                                         (472,395)
                                                     ------------

Cash flows from financing activities
    Payment of Malara Broadcast Group
      senior credit facility                           (1,113,659)
                                                     ------------
      Net cash used in financing activities            (1,113,659)

Net decrease in cash and cash equivalents               (555,483)
Cash and cash equivalents, beginning of period        33,124,659
                                                     ------------
Cash and cash equivalents, end of period             $32,569,176
                                                     ============

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 Corp. Bankruptcy News, Issue No. 20; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).

                            Plan Update

The Debtors filed their Prepackaged Plan and Disclosure Statement
on Dec. 11, 2006.  On Feb. 12, 2007, they filed an Amended
Disclosure Statement and the Court approved the adequacy of that
Disclosure Statement on Feb. 14, 2007.  On March 2, 2007, the
Debtors filed an Amended Plan of Reorganization.  The hearing to
consider confirmation of the Debtors' plan started on April 16,
2007.


MORTGAGE LENDERS: Reports $13.4 Million Net Loss in March 2007
--------------------------------------------------------------

                Mortgage Lenders Network USA, Inc.
                           Balance Sheet
                       As of March 31, 2007

Assets:
    Cash and Cash Equivalents                         $16,724,261
    Mortgage loans held for sale                       64,402,796
    Portfolio loans                                    10,288,602
    Allowance for loan losses                         (24,416,021)
    Capitalized Mortgage Servicing rights, net                  0
    Retained interests in securitization,
      at fair value                                             0
    Furniture, fixtures, equipment,
      an software, net                                 20,560,533
    Deferred Costs                                              0
    Principal & Interest Advances                       1,783,732
    Interest in subsidiaries                           13,025,892
    Other Assets                                       17,195,920
                                                     ------------
      Total Assets                                   $119,565,717
                                                     ============

Liabilities:
    Accounts Payable prepetition                      $14,450,548
    Accounts Payable postpetition                         485,121
    Accrued Expenses - Payroll                            995,249
    Accrued Expenses - Other                           18,428,133
    Warehouse Borrowings                               83,653,265
    Convertible Debt                                    1,500,000
    Servicing & Working Capital Advances               54,408,435
    Capital Lease Liability                                 6,258
    Other liabilities                                  32,478,858
                                                     ------------
      Total Liabilities                               206,405,865

Stockholders' Equity:
    Common Stock                                          625,000
    Additional Paid-In Capital                          1,829,770
    Retained Earnings                                 (89,294,918)
                                                     ------------
      Total Stockholders' Equity                      (86,840,148)
                                                     ------------
      Total Debts & Stockholders' Equity             $119,565,717
                                                     ============

                Mortgage Lenders Network USA, Inc.
            Schedule of Cash Receipts and Disbursements
                    Month Ended March 31, 2007

Cash - Beginning of Month                              $1,556,332

Receipts:
    Net Servicing Inflows                               2,352,032
    Warehouse and Loan Sale Inflows                        94,297
    Sale of Fixed Assets                                        0
    Sale of Other Assets                                        0
    Other Inflows                                         112,666

    Transfers from Cash Collateral                              0
                                                     ------------
      Total Receipts                                    2,558,996

Disbursements:
    Net Payroll                                           895,077
    Payroll Taxes                                          53,300
    Medical Coverage Sub/ FSA Witholding                   27,005
    Operating Expenses                                    479,652
    Rent                                                  134,260
    Utilities                                                   0
    Insurance                                                   0
    Administrative & Selling                                    0
    Other                                                       0

    Professional Fees Escrow Account                            0
    Professional Fees Paid                                255,726
    U.S. Trustee Fees                                           0
    DIP Fees                                                    0

    Transfers to Cash Collateral                                0
                                                     ------------
      Total Disbursements                               1,845,020

      Net Cash Flow                                       713,976
                                                     ------------
Cash - End of Month                                    $2,270,308
                                                     ============

                Mortgage Lenders Network USA, Inc.
                         Income Statement
                    Month Ended March 31, 2007

Revenue
    Gain on Sale - Subprime                          ($11,814,031)
    Gain on Sale - SRP/MBS                               (215,056)
    Mortgage origination income                               200
    Net Warehouse interest income                         352,121
    Servicing income, net                                 625,774
    Other Income                                          201,600
                                                     ------------
      Total Revenues                                 ($10,849,391)
                                                     ------------

Expenses
    Salaries                                             $681,387
    Overtime/Temp Help                                     15,340
    Bonus/Incentives                                      (39,200)
    Benefits                                               75,582
    Rent Expense                                          124,432
    Telephone                                              24,778
    Repairs & Maintenances                                  5,389
    Office & Supplies Expense                             134,026
    Postage/Express Mail                                   40,016
    Service Bureau                                        220,160
    Consulting Fees                                        59,326
    Insurance                                              43,244
    Loan Loss/Foreclosure Exp.                               (959)
    Appraisal/Credit Expenses                               2,625
    Travel & Entertainment                                161,689
    Meetings/Seminars/Education                            (2,500)
    Membership Fes/Dues/Filings                            13,607
    Advertising - Other                                    25,781
    Interest Expense - Other                                4,246
    Legal/Regulatory Expese                               (41,527)
    Miscellaneous Expenses                                 72,981
                                                     ------------
      Total Expenses Before Depreciation                1,620,424

      Depreciation Expense                                288,990
                                                     ------------
      Net Profit Before Reorganization Items          (12,758,806)

Reorganization Items
    Professional Fees                                     626,629
                                                     ------------
      Total Reorganization Items                          626,629

    Income Taxes                                                0
                                                     ------------
Net Income (Loss)                                    ($13,385,435)
                                                     ============

During March, the Debtor paid $626,629 in professional fees to
Scouler Andrews.  Since the Petition Date, the Debtor has paid
$979,135 to Scouler Andrews, $100,000 to Pachulski, Stang, Ziel,
Young, and $25,000 to The Trumbull Group.

                  About Mortgage Lenders Network

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

The Debtor's exclusive period to file a chapter 11 plan expires on
June 5, 2007.  (Mortgage Lenders Bankruptcy News, Issue No. 11;
Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/
or 215/945-7000).


VESTA INSURANCE: Florida Select Files April 2007 Operating Report
-----------------------------------------------------------------

               Florida Select Insurance Agency, Inc.
                         Income Statement
                    Month Ending April 30, 2007

Revenue from total sales                                       $0
Cost of sales                                                   0
                                                    -------------
Gross Profit                                                    0

Operating expenses                                              0
                                                    -------------
Net profit -- operations                                        0

Non-operating income/expenses
    Interest earned                                         4,179
                                                    -------------
Net profit (loss)                                          $4,179
                                                    =============

               Florida Select Insurance Agency, Inc.
                   Cash Receipts & Disbursements
                    Month Ending April 30, 2007

Cash on hand (Beginning)                               $3,292,440

Receipts:
    Account receivables                                         0
    Management fees                                             0
    Loan proceeds                                               0
    Sale of property                                            0
    Interest earned                                         4,179
                                                     -------------
Total receipts                                              4,179

Business disbursements                                          0
                                                     -------------
Surplus or deficit                                          4,179
                                                     -------------
Cash on Hand                                           $3,296,619
                                                     =============

                       About Florida Select

Based in Birmingham, Alabama, Florida Select Insurance Agency,
Inc. -- http://www.floridaselect.com/-- provides residential   
insurance for Florida and South Carolina property owners.  Florida
Select is an affiliate of Vesta Insurance Group, Inc.  The company
filed for chapter 11 protection on April 24, 2007 (BAnkr. N.D.
Ala. Case No. 07-01849).  Rufus Dorsey, IV, Esq., at Parker Hudson
Rainer & Dobbs LLP, represents Florida Select.

                      About Vesta Insurance

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

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

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

On Aug. 1, 2006, the District Court of Travis County, Texas
entered an order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.

On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of
Liquidation and Disclosure Statements.  They filed an amended Plan
on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006.  The
Court approved the Disclosure Statements of Vesta and Gaines on
Nov. 10, 2006.  On Dec. 22, 2006, the Court confirmed the Third
Amended Plans of Vesta and Gaines.

(Vesta Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


VESTA INSURANCE: Gaines Posts $188,192 Net Loss in April 2007
-------------------------------------------------------------

                       J. Gordon Gaines, Inc.
                          Income Statement
                     Month Ended April 30, 2007

Revenue from Total Sales                                       $0
Less:
    Cost of Sales
                                                     ------------
Gross Profit                                                    0

Less:
    Operating Expenses                                    214,793
                                                     ------------
Net Loss Operations                                      (214,793)

Non-Operating Income (Expenses)
    Interest Earned                                         3,485
    Non-operational income                                 23,116
    Sale of Property                                            -
                                                     ------------
Net Loss                                                ($188,192)
                                                     ============

                       J. Gordon Gaines, Inc.
             Schedule of Cash Receipts and Disbursements
                     Month Ended April 30, 2007

Cash On Hand (Beginning)                               $1,108,066

Cash Receipts:
    Accounts Receivable                                         0
    Management Fees                                             0
    Loan Proceeds                                               0
    Sale of Property                                            0
    Interest Earned                                         3,485
    Miscellaneous Income                                        0
    Non-operational Income                                 23,116
    Funding Under Post-confirmation Agreement             105,004
                                                     ------------
Total Receipts                                            131,605

Cash Disbursements:
    Business Disbursements Form BA-02(B)                  319,797
                                                        ---------
    Surplus Or Deficit                                   (188,192)
                                                        ---------
    Cash on Hand (End)                                   $919,874
                                                      ===========

                       About Vesta Insurance

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

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

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

On Aug. 1, 2006, the District Court of Travis County, Texas
entered an order appointing the Texas Commissioner of Insurance
as Liquidator of Vesta Insurance's Texas-domiciled subsidiaries:
Vesta Fire Insurance Corporation; The Shelby Insurance Company;
Shelby Casualty Insurance Corporation; Texas Select Lloyds
Insurance Company; and Select Insurance Services, Inc.

On Oct. 11, 2006, both Vesta and Gaines filed separate Plans of
Liquidation and Disclosure Statements.  They filed an amended Plan
on Nov. 7, 2006, and a Second Amended Plan on Nov. 10, 2006.  The
Court approved the Disclosure Statements of Vesta and Gaines on
Nov. 10, 2006.  On Dec. 22, 2006, the Court confirmed the Third
Amended Plans of Vesta and Gaines.

(Vesta Bankruptcy News, Issue No. 21; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                             *********

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
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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
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Monthly Operating Reports are summarized in every Saturday edition
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For copies of court documents filed in the District of Delaware,
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bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
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                             *********

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

Troubled Company Reporter is a daily newsletter co-published
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,
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Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez,
Tara Marie A. Martin, John Paul C. Canonigo, and Peter A. Chapman,
Editors.

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

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                    *** End of Transmission ***