TCR_Public/070612.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

              Tuesday, June 12, 2007, Vol. 11, No. 138

                             Headlines

AEGINA INVESTMENTS: Case Summary & 11 Largest Unsecured Creditors
AFFILIATED COMPUTER: Suspends Exclusivity Agreement with Cerberus
AFFINITY GROUP: Moody's Junks $106.3 Million Senior Notes
AIR JAMAICA: Moody's Assigns B1 Rating to Senior Unsecured Notes
ALTERNATIVE LOAN: Moody's Rates Class B-1 Certificates at Ba2

AMC ENTERTAINMENT: Fitch to Rate New $400 Million Loan at CCC
AMC ENTERTAINMENT: Moody's Rates Proposed Sr. Unsec. Debt at B3
AMC ENTERTAINMENT: S&P Junks Rating on Proposed $400MM PIK Loan
AMERIPATH INC: Quest Diagnostics Prices Senior Notes Offering
BALLY TOTAL: Liberation Investments Balks at Pre-Packaged Plan

BALLY TOTAL: Wattles Capital Unloads Shares of Common Stock
BALLY TOTAL: Michael Feder Named as Chief Operating Officer
BANC OF AMERICA: S&P Lifts Ratings on 11 Certificate Classes
BERRY PLASTICS: Moody's Lowers Corporate Family Rating to B2
CMS ENERGY: Moody's Upgrades Rating to Ba1 on Sr. Unsec. Notes

COMMERCIAL MONEY: Netbank Can't Assert Claims Against Royal Bonds
CORD BLOOD: March 31 Balance Sheet Upside-Down by $4.7 Million
CUSTOM FOOD: Committee Wants Storch Amini as Special Counsel
CWABS ASSET: Moody's Rates Classes BV & BF Certificates at Ba1
DOROTHY O'CONNOR: Voluntary Chapter 11 Case Summary

DUNE ENERGY: Completes Sale of 36000 Shares to Jefferies for $36MM
DVI MEDICAL: Fitch Holds Junk Ratings on Seven Note Classes
EDDIE BAUER: ISS Urges Shareholders to Approve Directors' Election
ELLIOTT HOLDING: Case Summary & 169 Largest Unsecured Creditors
ENERGY PARTNERS: Retains Jones Walker to Conduct Investigation

ESPERANZA DULAY: Case Summary & Six Largest Unsecured Creditors
ESSAR GLOBAL: Gets Investment Canada Act Approval on Acquisition
FALL RIVER: Case Summary & 20 Largest Unsecured Creditors
FAST TEK: Voluntary Chapter 11 Case Summary
G-STAR 2002-1: Fitch Affirms BB Rating on $3,405,253 Class D Notes

GREGG APPLIANCES: S&P Rates $100 Million Senior Loan at B+
H20 FIRE: Voluntary Chapter 11 Case Summary
HAWKS LANDING: Case Summary & Nine Largest Unsecured Creditors
HEALTH MANAGEMENT: Inks Pact to Sell Two Hospitals to Wellmont
HERCULES OFFSHORE: S&P Rates Proposed $1.05 Bil. Facilities at BB

HILITE INT'L: S&P Puts Low-B Ratings on Proposed $190 Mil. Loans
HOME EQUITY: Moody's Rates Class M-11 Certificates at (P)Ba2
ION MEDIA: Commences Exchange Offer for 13-1/4% & 9-3/4% Stock
J.P. MORGAN: Moody's Rates Class M10 Certificates at (P)Ba1
JANICE MODICA: Voluntary Chapter 11 Case Summary

KARA HOMES: Case Summary & 776 Largest Unsecured Creditors
KENNY BRIGHT: Case Summary & Six Largest Unsecured Creditors
KIRKLAND KNIGHTSBRIDGE: Unsecured Creditors to Recover 100%
KOOSHAREM CORP: S&P Junks Rating on $100 Million Second-Lien Loan
LENOX GROUP: S&P Holds CCC+ Rating and Revises Outlook to Negative

LEXINGTON PRECISION: March 31 Balance Sheet Upside-Down by $29.9MM
MARQUEE HOLDINGS: Consent Solicitation Due Today
MARQUEE HOLDINGS: Fitch to Rate Potential $275MM Term Loan at CCC
MARQUEE HOLDINGS: Moody's Revises Outlook to Negative from Stable
MARQUEE HOLDINGS: S&P Holds Ratings on Special Dividend Payment

MASTR SECOND: S&P Puts D Rating on Two Certificate Classes
MIGUEL AVILA: Voluntary Chapter 11 Case Summary
MORGAN STANLEY: Fitch Affirms BB Rating on Class F Certificates
NORTHWEST AIRLINES: S&P Removes Watch on Certificates' Ratings
OSI RESTAURANT: Moody's Cuts Rating to B1 on Three Bank Loans

OSI RESTAURANT: Higher Leverage Cues S&P to Downgrade Ratings
PAC-WEST TELECOMM: Section 341(a) Meeting Continued to July 11
PACIFIC LUMBER: May Continue to Use Cash Collateral Until June 22
PACIFIC LUMBER: Scopac May Use Cash Collateral Until August 31
PACIFIC LUMBER: Noteholders to Appeal Scopac Single Asset Order

PATHEON INC: Posts $22 Million Net Loss in Second Quarter 2007
PHOTRONICS INC: Earns $14.1 Million for the Quarter Ended April 29
PINNACLE ENTERTAINMENT: Closes $385MM Sr. Notes Private Offering
PLASTICON INT'L: Suspends Share Exchange due to Debt Restructuring
PORTRAIT CORP: CPI Completes Acquisition of All Operating Assets

PRIMUS TELECOM: Exchanged 6MM Shares for Its $5MM Debentures
RADNET INC: Hires Ernst & Young as Accountants
ROCK-TENN CO: S&P Revises Recovery Rating on $700MM Sr. Facility
SAKS INC: May Sales Increase to $248.9 Million
SAMARITAN HOSPITAL: Trustee Appoints Seven-Member Creditors Panel

SAMARITAN HOSPITAL: Panel Retains Frost Brown as Counsel
SEA CONTAINERS: Court Sets July 16 as Deadline for Filing Claims
SEMCO ENERGY: S&P Revises CreditWatch to Positive from Developing
SIERRA HEALTH: S&P Retains Positive Watch on BB+ Credit Rating
STATE BONDING: Case Summary & 13 Largest Unsecured Creditors

STEVE SLEPCEVI: Case Summary & 19 Largest Unsecured Creditors
SURGILIGHT INC: March 31 Balance Sheet Upside-Down by $625,891
THOMAS WILSON: Case Summary & 17 Largest Unsecured Creditors
TLC VISION: Moody's Assigns Corporate Family Rating at B1
TLC VISION: S&P Places Corporate Credit Rating at B

TWEETER HOME: Files for Chapter 11 Protection in Delaware
TWEETER HOME: Case Summary & 30 Largest Unsecured Creditors
W&T OFFSHORE: Prices $450 Million 8.25% Senior Notes Offering
WERNER LADDER: Completes Sale of All Assets to Investor Group

* Bingham Issues Opinion on Directors' Fiduciary Duty Dispute

* Large Companies with Insolvent Balance Sheets

                             *********

AEGINA INVESTMENTS: Case Summary & 11 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Aegina Investments, L.L.C.
        2004 Martin Luther King, Jr. Avenue, Southeast
        Washington, DC 20020

Bankruptcy Case No.: 07-00297

Chapter 11 Petition Date: June 7, 2007

Court: District of Columbia (Washington, D.C.)

Debtor's Counsel: Scott J. Newton, Esq.
                  Stephens, Boatwright, Primeau, Cooper & Coleman
                  9255 Lee Avenue
                  Manassas, VA 20110
                  Tel: (703) 361-8246

Total Assets: $1,687,500

Total Debts:  $375,000

Debtor's 11 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Casa America Furniture,     560 Old Town              $570,000
Inc.2004 M.L.K., Jr.        Mall, 521 Old
Southeast                   Town Mall,
Washington, D.C. 20020      1610 McHenry
                            Street, 556-558
                            Old Town Mall,
                            562 Old Town
                            Mall, 1824
                            Wilkins Avenue

Fred Cohn                                             $125,000
12135 Blair Avenue
Boynton Beach, FL 33437

Internal Revenue Service                               unknown
Spec Proc/Support Staff
P.O. Box 10025, Stop Room
898
Richmond, VA 23240

Alturas Real Estate                                    unknown
Interests
c/o James Gladstone, Esq.
Womble Carlyle
1401 Eye Street Northwest
Washington, DC 20005

Friedlander Misler          legal fees                 $25,000

Anacostia Ventures, L.L.C.                             $25,000

Bureau of Treasury                                      $7,000
Collection Division

D.C. Treasurer                                         $12,000

Sussex County Tax Assessor                              $2,000

City of Graham Tax                                      $2,000
Collector

Buena Vista Township Tax                                $1,500
Collection


AFFILIATED COMPUTER: Suspends Exclusivity Agreement with Cerberus
-----------------------------------------------------------------
Affiliated Computer Services Inc. has reached an agreement with
Darwin Deason, the holder of approximately 42% of the company's
outstanding voting stock and chairman of the board of directors,
and Cerberus Capital Management LP, to suspend the Exclusivity
Agreement between Mr. Deason and Cerberus.

The suspension of the agreement will enable the company, under the
direction of an appointed Special Committee of independent
directors, to consider the sale of the company, which it considers
to be in the best interests of the company and its stockholders.

On March 20, 2007, the company received a proposal from Mr. Deason
and Cerberus to acquire all of the outstanding shares of the
company's common stock, other than certain shares and options held
by Mr. Deason and members of the company's management team that
would be rolled into equity securities of the acquiring entity,
for $59.25 per share in cash.  Mr. Deason and Cerberus
subsequently increased the offer price to $62 per share in cash.

In connection with their proposal, Mr. Deason and Cerberus entered
into an Exclusivity Agreement, dated March 20, 2007, pursuant to
which Mr. Deason agreed to work exclusively with Cerberus to
negotiate an acquisition of the company.

Pursuant to the terms of a Waiver Agreement, dated as of June 10,
2007, between Mr. Deason, Cerberus and the company, from June 16,
2007 through Aug. 9, 2007, the Special Committee and its financial
advisors, Lazard Freres & Co. LLC, will be soliciting indications
of interest in a transaction involving the company, permitting
interested parties, including Cerberus, to conduct due diligence,
and having discussions with such interested parties regarding
potential transactions involving the company, well as considering
all other strategic alternatives available to the company.

Also during this period, Mr. Deason will be free to have
discussions and negotiations with parties other than Cerberus
interested in a potential transaction with the company.  If the
company enters into an agreement with a party other than Cerberus
on or prior to Aug. 19, 2007, the Exclusivity Agreement
terminates.

Under the terms of the Waiver Agreement, the company will
reimburse Cerberus for up to $7.5 million of documented out-of-
pocket expenses incurred by Cerberus in connection with its
proposal.  In addition, if the company enters into a transaction
with another party, the company will pay Cerberus $15 million upon
consummation of that transaction if, at the time the transaction
is signed or closed, Cerberus has not withdrawn its proposal to
acquire the company, has not reduced its offer price below
$62 per share or otherwise modified its proposal in a manner that
is materially adverse to the company, and is diligently pursuing
an acquisition of the company.  Mr. Deason will pay Cerberus 40%
of the positive difference between the value of what Mr. Deason
will receive in a transaction consummated with another party and
what Mr. Deason would have received under the Cerberus proposal.

The Special Committee believes that the terms of the Waiver
Agreement will enable it to conduct a process for considering
strategic alternatives available to the company, including a
potential sale of the company that it considers to be in the best
interests of the company and its stockholders.  There is no
assurance that the process undertaken by the Special Committee
will result in any transaction, including a transaction with Mr.
Deason and Cerberus or any other parties.

Interested parties in exploring a potential transaction with the
company may contact the Special Committee's financial or legal
advisors:

   -- Financial Advisors
      Attn: Michael J. Biondi/Alex Stern/David Descoteaux
      Lazard Freres & Co. LLC
      Tel: (212) 632-6000

   -- Legal Advisors
      Attn: Thomas A. Roberts/Michael J. Aiello
      Weil, Gotshal & Manges LLP
      Tel: (212) 310-8000

                About Cerberus Capital Management

Headquartered in New York City, and established in 1992, Cerberus
Capital Management LP is one of the world's leading private
investment firms with approximately $25 billion of capital under
management in funds and accounts.  Through its team of investment
and operations professionals, Cerberus specializes in providing
both financial resources and operational expertise to help
transform its portfolio companies into industry leaders for long-
term success and value creation.  Cerberus has offices in Los
Angeles, Chicago and Atlanta, well as advisory offices in London,
Baan, Frankfurt, Tokyo, Osaka and Taipei.

                 About Affiliated Computer Services

Headquartered in Dallas, Texas, Affiliated Computer Services Inc.
(NYSE: ACS) -- http://www.acs-inc.com/-- is a FORTUNE 500
company.  It provides business process outsourcing and information
technology solutions to world-class commercial and government
clients.  The company has more than 58,000 employees supporting
client operations in nearly 100 countries.

                          *     *     *

As reported in the Troubled Company Reporter on March 29, 2007,
Fitch Ratings placed Affiliated Computer Services Inc. on
Rating Watch Negative after the proposed offer from Darwin Deason,
founder and current chairman of ACS, and Cerberus Capital
Management L.P. to acquire the company in a leveraged buyout
transaction valued at $8.2 billion, including existing debt.

Ratings affected were (i) Issuer Default Rating 'BB'; (ii) Senior
secured revolving credit facility at 'BB'; (iii) Senior secured
term loan at 'BB'; and (iv) Senior notes at 'BB-'.


AFFINITY GROUP: Moody's Junks $106.3 Million Senior Notes
---------------------------------------------------------
Moody's Investors Service rated at Ba2 (LGD2, 15%) the bank loan
add-on of Affinity Group Holding, Inc.  Moody's also downgraded
the bank loan to Ba2 (LGD2, 15%) from Ba1, the senior subordinated
notes to B3 (LGD4, 59%) from B2, and the holding company notes to
Caa1 (LGD5, 89%) from B3.  Affinity has temporarily upsized the
term loan by $25 million (with provision for another $25 million),
with proceeds used to repurchase senior subordinated notes.  The
company intends to sell the Camping World retail segment to
FreedomRoads Holding Company, LLC, an unrated entity that operates
RV dealerships and that has a common controlling shareholder with
Affinity, and use cash proceeds from the divestiture to repay the
term loan in full. The rating outlook is stable.

This rating is assigned:

   -- $50.0 million add-on to the senior secured term loan at
      Ba2 (LGD2, 15%);

Ratings downgraded are:

   -- $35.0 million senior secured revolving credit facility to
      Ba2 (LGD2, 15%) from Ba1;

   -- $104.8 million (before add-on) senior secured term loan to
      Ba2 (LGD2, 15%) from Ba1;

   -- $152.4 million 9.0% senior subordinated notes (2012) to B3
      (LGD4, 59%) from B2;

   -- $106.3 million holding company 10.875% senior notes to
      Caa1 (LGD5, 89%) from B3;

   -- Corporate family rating to B2 from B1;

   -- Probability-of-default rating to B2 from B1.

The rating on the term loan will be withdrawn if it is repaid in
full using proceeds from the retail segment divestiture.

The corporate family rating assignment of B2 reflects Moody's
opinion that credit metrics and operational risks are likely to be
consistent with a B-rated issuer in the printing & publishing
industry following the pending divestiture of the sizable retail
segment.  In particular, driving down the rating are Moody's
belief that high motor fuel prices will continue to pressure
demand for goods and services directed towards the recreational
vehicle lifestyle, continued weak credit metrics such as
high leverage and low fixed charge coverage, and the company's
relatively small size.  Partially offsetting these risks are
Moody's expectation that the company will generate discretionary
cash flow that could be used to service debt, Affinity's leading
market position in the narrow niche of publications and membership
clubs for recreational vehicles, and the high renewal rate for
subscriptions and service contracts.

The stable outlook reflects Moody's belief that, while motor fuel
prices near historical highs will pressure demand growth for
products and services directed towards RV users, Affinity likely
will generate a small cash flow surplus that could be used to
improve the balance sheet.

Affinity Group Holding, Inc, with headquarters in Ventura,
California, produces about three dozen publications largely
focused on recreational vehicles and operates travel membership
clubs for RV owners.  The company is divesting the Camping World
retail segment.  Pro-forma revenue for the 12 months ending March
31, 2007 was approximately $211 million.


AIR JAMAICA: Moody's Assigns B1 Rating to Senior Unsecured Notes
----------------------------------------------------------------
Moody's Investors Service assigned a rating of B1 to Air Jamaica
Limited's guaranteed senior unsecured notes.  The rating is based
on the unconditional and irrevocable guarantee of the Government
of Jamaica which has a foreign-currency bond rating of B1.

Jamaica's foreign currency bond rating reflects the country's
mixed, free market economy with state enterprises as well as
private sector businesses and the government's commitment to
fiscal discipline and comparatively low external government
debt ratios.

The Ba3 foreign currency country ceiling for bonds is based on the
foreign currency government bond rating of B1 and Moody's
assessment of a medium risk of a payments moratorium in the event
of a government bond default.

The B1 rating assigned to Air Jamaica Limited reflects the
application of Moody's rating methodology for government-related
issuers, 'The Application of Joint Default Analysis to government-
Related Issuers', published in April 2005. The Baseline Credit
Assessment for Air Jamaica Limited is 21 reflecting weak
performance, a history of operating losses and high leverage.  The
likelihood of government support is high
because of Air Jamaica's status as the national flag carrier and
the existence of approximately $400 million of debt issued by Air
Jamaica that is guaranteed by the Government.  The default
dependency is high because, while the government has a
constitutional provision that prioritizes the elimination of a
budget deficit by mandating debt-service payments as the first
expenditure policy, if Air Jamaica is unable to make timely
payments of interest and principal the unsecured notes will become
the obligation of the Government of Jamaica and will be included
as public sector indebtedness which is subject to the provision of
payment under the Jamaican Constitution.

Although the current rating outlook for the Government of Jamaica
is stable, the company must contend with a number of credit
challenges including a high vulnerability to domestic and external
shocks, such as hurricanes or other natural disasters or other
circumstances such as increased airport access costs and fees
imposed on passengers which cause a reduction in demand for air
transportation to Jamaica, and which could impact the tourism
industry and Jamaica's economy more broadly.

As a result of poor financial performance with operating losses
between 1994 and 2004, the Government of Jamaica acquired full
ownership and control of Air Jamaica Holdings, which holds 100% of
the outstanding common shares of Air Jamaica Limited, the national
airline of Jamaica on Dec. 23, 2004.  In each of the fiscal years
since being acquired by the Government Air Jamaica's operating
losses have continued.  The Government unconditionally guarantees
payment of principal and interest on the notes which will be sold
in privately negotiated transactions which, under Rule 144A, do
not require registration under the Securities Act of 1933.

The stable outlook reflects the likelihood that the Government
will continue to invest in Air Jamaica despite its continued
generation of operating losses.  Downward pressure on the rating
could occur if real gross domestic product fails to exhibit
sustainable growth, the tourism industry (Jamaica's leading gross
earner of foreign exchange) contracts, or net inflows from
official and private sources are inadequate to finance
the current account deficit. The ratings could be raised if, in
addition to continued strengthening of the credit metrics of the
Government of Jamaica, Air Jamaica generates sustained operating
profits and positive cash from operations, which allow the company
to increase its cash balance.

Assignments:

   * Issuer: Air Jamaica Limited

     -- Senior Unsecured Regular Bond/Debenture, Assigned B1.

Air Jamaica Limited, headquartered in Kingston, Jamaica, provides
service from Jamaica to the U.S., Toronto, and other Caribbean
destinations.


ALTERNATIVE LOAN: Moody's Rates Class B-1 Certificates at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned a Aaa rating to the senior
certificates issued by Alternative Loan Trust 2007-OH1 and ratings
ranging from Aa1 to Ba2 to mezzanine and subordinate
certificates in the deal.

The securitization is backed by Option Adjustable-Rate, Alt-A
mortgage loans and originated by Countrywide Home Loans, Inc.
(50.88%), GreenPoint Mortgage Funding Inc. (20.69%), Quicken Loans
Inc. (16.03%,) and other originators.  The ratings are based
primarily on the credit quality of the loans, on the protection
from subordination, and a swap agreement. Moody's expects
collateral losses to range from 1.10% to 1.30%.

Countrywide Home Loans Servicing LP will act as master servicer.

                   Class A-1-A, Assigned Aaa
                   Class A-1-B, Assigned Aaa
                   Class A-1-C, Assigned Aaa
                   Class A-1-D, Assigned Aaa
                   Class A-2-A, Assigned Aaa
                   Class A-2-B, Assigned Aaa
                   Class A-2-C, Assigned Aaa
                   Class A-2-D, Assigned Aaa
                   Class A-3, Assigned Aaa
                   Class X-P, Assigned Aaa
                   Class A-R, Assigned Aaa
                   Class M-1, Assigned Aa1
                   Class M-2, Assigned Aa2
                   Class M-3, Assigned Aa3
                   Class M-4, Assigned A1
                   Class M-5, Assigned A2
                   Class M-6, Assigned A3
                   Class M-7, Assigned Baa1
                   Class M-8, Assigned Baa1
                   Class M-9, Assigned Baa2
                   Class B-1, Assigned Ba2


AMC ENTERTAINMENT: Fitch to Rate New $400 Million Loan at CCC
-------------------------------------------------------------
Fitch has affirmed the Issuer Default Ratings of Marquee Holdings
Inc. and its principal operating subsidiary AMC Entertainment,
Inc., at 'B' following the company's recent announcement.

Fitch expects to rate the new $400 million senior unsecured term
facility 'CCC/RR6' and would also expect to rate the potential
$275 million senior unsecured term loan facility 'CCC/RR6' based
on their deep structural subordination in the capital structure.
The Rating Outlook is Stable.

Marquee Holdings has announced an intention to enter into a five-
year $400 million senior unsecured term loan facility at an
additional holding company level, named AMC Entertainment
Holdings, Inc., to fund a dividend payout to Marquee's current
shareholders.  Neither Marquee or its operating subsidiary AMC
Entertainment or its subsidiaries will be a party to the
transaction.  Simultaneously, Marquee announced a consent
solicitation to amend the indenture of its existing discount notes
due 2014 to accommodate a dividend payment of up to $275 million
prior to the next accretion date on Aug. 15, 2007.  If the
amendment is approved, Marquee intends to use cash on hand at AMC
Entertainment but also has an option to fund the dividend by
entering into an additional $275 million senior unsecured term
loan facility.  The note holders are offered a 1.44% consent fee
at maturity. Regardless of the results of the solicitation,
entering into the proposed $400 million facility would trigger a
cash interest payout on the discount notes estimated at
approximately $29 million per year beginning on Feb. 15, 2008.
This announcement follows the suspension of Marquee's IPO on
May 3, 2007.

Fitch believes that AMC/Marquee has sufficient financial
flexibility at its current rating to fund the additional debt
service payments due to the recent debt reduction, solid operating
performance and expectations for a continued strong box office
performance for the remainder of the summer season.  In March
2007, the company allocated all proceeds from the National
CineMedia IPO and $109 million in cash toward debt repayment and
fully redeemed approximately $600 million of its higher coupon
operating company senior and subordinated notes.  Therefore, while
the proposed transaction will result in higher consolidated debt
levels, potentially reaching the level prior to the debt
reduction, Fitch notes that the new debt does not affect the
default probability and recovery expectations of the operating
company debt ranked higher in the capital structure.

Liquidity profile may be weakened if the company chooses to fund
the $275 million additional dividend with cash on hand at AMC,
pending the results of the consent solicitation.  The company
reported a proforma cash balance of $362 million and $177 of
availability under its revolving facility as of Dec. 28, 2006.

Following the suspension of the AMC IPO in early May 2007, Fitch's
ratings incorporated the potential for another equity offering and
a dividend, albeit a lower one, to the shareholders.  Therefore,
Fitch believes that the announced plan to return capital to the
current shareholders is within the existing and expected financial
policies reflected by the 'B' rating.

Fitch affirms these ratings:

  AMC

    -- Issuer Default Rating 'B';
    -- Senior secured credit facilities 'BB/RR1';
    -- Senior unsecured notes 'B/RR4';
    -- Senior subordinated notes 'CCC+/RR6'.

  Marquee

    -- Issuer Default Rating 'B';
    -- Senior discount notes 'CCC/RR6'.

The Rating Outlook is Stable.

                 About Marquee Holdings

Based in Kansas City, Mo., Marquee Holdings Inc. is organized as
an intermediate holding company with no operations of its own.
The Company's principal directly owned subsidiaries are American
Multi-Cinema, Inc., Grupo Cinemex, S.A. de C.V., and AMC
Entertainment International, Inc.

                  About AMC Entertainment

Based in Kansas City, Missouri, AMC Entertainment Inc. --
http://www.amctheatres.com/-- is a worldwide leader in the
theatrical exhibition industry.  The company serves more than 250
million guests annually through interests in 415 theatres and
5,672 screens in 12 countries including the United States, Hong
Kong, Brazil and the United Kingdom.


AMC ENTERTAINMENT: Moody's Rates Proposed Sr. Unsec. Debt at B3
---------------------------------------------------------------
Moody's Investors Service changed the outlook for Marquee Holdings
Inc. (parent of AMC Entertainment Inc.) to negative from stable.

Moody's also assigned a B3 rating to its proposed debt at AMC
Entertainment Holdings, Inc., a newly created entity that will
become the parent of Marquee.  The company intends to use proceeds
to fund a dividend to Marquee's current stockholders.

The negative outlook reflects concerns over the increase in
leverage to 7.2 times debt-to-EBITDA from 6.7 times (based on
estimated results for the year ended March 31, 2007, and as per
Moody's standard adjustments, which include operating leases).
Furthermore, the transaction creates no value for creditors and
represents a reversal from the commitment to improving Marquee's
credit profile that management demonstrated by repaying debt with
proceeds from the National CineMedia transactions.  If
Marquee's debt-to-EBITDA remains in excess of 7 times over the
next year, or if the company does not generate positive free cash
flow, Moody's would likely downgrade the corporate family rating
to B2.  Conversely, Moody's would consider stabilizing the outlook
with:

   (1) leverage below 7 times and on track to fall to the low to
       mid 6 times; and

   (2) positive free cash flow.

The B3 rating on the proposed debt incorporates its junior-most
position in the capital structure, and the LGD6 93% reflects its
low recovery prospects as a result of the material amount of
claims ranking senior to it that would have to be repaid first in
a default scenario.  This new debt does not benefit from any
subsidiary guarantees, nor does it have a security interest in any
assets of the company.  It is structurally subordinated to all
other debt in the capital structure, which, inclusive
of capitalized operating leases, comprises approximately $5.5
billion.  The introduction of this junior-ranking claim of size to
the company's consolidated capitalization, however, results in an
upgrade of the rating for the higher-ranking (via structural
seniority) senior subordinated notes to B2, from B3, as the LGD
estimate is reduced.  All other ratings were affirmed.  A summary
of rating actions follows, including
updated LGD assessments and point estimates to reflect the new
capital structure.

   * Marquee Holdings Inc.

     -- Outlook changed to negative from stable;
     -- Affirmed B1 corporate family rating;
     -- Affirmed B1 probability of default rating.

   * AMC Entertainment Holdings, Inc. (newly created entity)

     -- Assigned B3, LGD6, 93% to proposed Senior Unsecured Bank
        Credit Facility.

   * AMC Entertainment, Inc.

     -- Senior Subordinated Bonds, Upgraded to B2 from B3, LGD5,
        73%;

     -- Affirmed Ba1 on Senior Secured Bank Credit Facility,
        LGD2, 12%;

     -- Affirmed Ba3 on Senior Unsecured Bonds, LGD3, 34%.

   * Marquee Holdings, Inc.

     -- Affirmed B3 on Senior Unsecured Bonds, LGD5, 87%.

The B1 corporate family rating for Marquee continues to reflect
high leverage, sensitivity to product from movie studios, and a
weak industry growth profile, offset by good liquidity and the
advantages of scale and geographic diversity.

                   About Marquee Holdings

Based in Kansas City, Mo., Marquee Holdings Inc. is organized as
an intermediate holding company with no operations of its own.
The Company's principal directly owned subsidiaries are American
Multi-Cinema, Inc., Grupo Cinemex, S.A. de C.V., and AMC
Entertainment International, Inc.  Its annual revenue is
approximately $2.5 billion.

                   About AMC Entertainment

Headquartered in Kansas City, Mo., AMC Entertainment Inc. --
http://www.amctheatres.com/-- is a theatrical exhibition company
with interests in about 382 theatres with 5,340 screens as of Dec.
28, 2006.  About 87 percent of the company's theatres are located
in the U.S. and Canada, and 13 percent in Mexico, Argentina,
Brazil, Chile, Uruguay, Hong Kong, France, and the U.K.


AMC ENTERTAINMENT: S&P Junks Rating on Proposed $400MM PIK Loan
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating and stable outlook to AMC Entertainment Holdings Inc., the
new super-holding company of Marquee Holdings Inc. and ultimate
parent of operating company AMC Entertainment Inc.

S&P also assigned a 'CCC+' rating to AMC Entertainment Holdings
Inc.'s proposed $400 million senior unsecured pay-in-kind term
loan facility due 2012 and a 'CCC+' rating to its 364-day
$275 senior unsecured PIK term loan due 2008.

At the same time, S&P affirmed its issue ratings on AMC
Entertainment Inc. and its parent company, Marquee Holdings Inc.

S&P also withdrew the corporate credit ratings on the two
companies.

The issue rating affirmation follows Marquee's announcement that
it intends to pay a partially debt-funded $675 million special
dividend.

Kansas City, Missouri-headquartered movie theater chain AMC will
have either $2.3 billion or $2.6 billion in debt following the
proposed transaction, and approximately $2.8 billion in present
value of operating lease obligations.

"The rating on AMC reflects the company's high tolerance for
financial risk, its high leverage, and its lower EBITDA margins
relative to peers," said Standard & Poor's credit analyst Tulip
Lim.  "It also considers the company's participation in the mature
and highly competitive U.S. movie exhibition industry, exposure to
the fluctuating popularity of Hollywood films, and risk of
increased competition as entertainment alternatives proliferate
and movie release windows shorten."

These risks are partially offset by the company's size, modern
theater circuit relative to other major theater chains, and large
and geographically diverse U.S. operations.

AMC is the second-largest exhibitor in the U.S., with good
positions in large, urban markets.  The company has the No. 1 or
No. 2 market share in 21 of the nation's top 25 markets.


AMERIPATH INC: Quest Diagnostics Prices Senior Notes Offering
-------------------------------------------------------------
AmeriPath Inc. reported that Quest Diagnostics Incorporated has
determined the pricing of the cash tender offer and consent
solicitation for any and all of the company's outstanding
$350 million principal amount 10-1/2% Senior Subordinated
Notes due 2013 (CUSIP Nos. 03071D AC 3 and 03071D AA 7).

The tender offer and the related consent solicitation to amend the
indenture, pursuant to the Notes were issued upon the terms and
subject to the conditions set forth in the Offer to Purchase and
Consent Solicitation Statement dated May 21, 2007, and the related
Letter of Transmittal and Consent.  The tender offer will expire
at midnight, New York City time, on Monday, June 18, 2007 unless
extended by Quest Diagnostics.

The total consideration for the Notes was determined as of
2:00 p.m., New York City time, on June 4, 2007, using the bid-side
yield on the 4.625% U.S. Treasury Note due March 31, 2008, as
displayed on the Bloomberg Government Pricing Monitor Page PX3
plus 50 basis points, minus accrued and unpaid interest to, but
not including, the Early Settlement Date.  The yield on the
Reference Security was 5.089% and the tender offer yield was
5.589%.

Accordingly, the total consideration for each $1,000 principal
amount of Notes validly tendered and not withdrawn at or prior to
the Consent Deadline is $1,088.58.  The Total Consideration
includes a consent payment of $30 per $1,000 principal amount of
the Notes, which will be payable only in respect of the Notes
purchased that were validly tendered and not withdrawn on or prior
to 5:00 p.m., New York City time, on June 4, 2007.

Holders who tender their Notes after the Consent Deadline and at
or prior to the Expiration Time will not be eligible to receive
the consent payment, and accordingly will only be eligible to
receive an amount equal to the Total Consideration less the
consent payment.  Holders whose Notes are accepted for payment
will also be paid accrued and unpaid interest from the most recent
interest payment date to, but not including, the applicable
Settlement Date.

For the purposes of calculating the Total Consideration and the
Tender Offer Consideration pursuant to the terms of the tender
offer, the Early Settlement Date is June 8, 2007, which is the
date that Quest Diagnostics expects to settle the purchase of
Notes which have been validly tendered and not withdrawn on or
prior to the Consent Deadline.

In addition, Quest Diagnostics reported that approximately
$348 million of outstanding Notes, or approximately 99.4% of the
aggregate principal amount of Notes outstanding, had been validly
tendered and not withdrawn at or prior to the Consent Deadline.
Accordingly, Quest Diagnostics has received the requisite consents
to adopt the proposed amendments to the Indenture governing the
Notes pursuant to the consent solicitation.  The amendments to the
Indenture contained in such supplemental indenture become
effective upon execution of the supplemental indenture but will
not become operative until the date on which all Notes validly
tendered prior to the Consent Deadline and not withdrawn at or
prior to the Consent Deadline are accepted for purchase on the
Early Settlement Date pursuant to the Offer to Purchase.

For questions regarding the tender offer and consent solicitation,
contact the Dealer Manager, Morgan Stanley & Co. Incorporated at
(212) 761-5384 (attn: Tate Forrester).

For questions concerning the procedures for tendering Notes or
requests for the Offer to Purchase should contact the information
agent and Depositary, Global Bondholder Services Corporation, at
(866) 804-2200.

                    About Quest Diagnostics

Headquartered in Lyndhurst, N.J., Quest Diagnostics Inc. (NYSE:
DGX) -- http://www.questdiagnostics.com/-- diagnostic testing,
information and services that patients and doctors need to make
better healthcare decisions.

                       About Ameripath Inc.

Ameripath Inc. is a national provider of physician-based
pathology, dermatopathology and molecular diagnostic services to
physicians, hospitals, clinical laboratories and surgery centers.
A team of sub-specialized pathologists and Ph.D. scientists
provide medical expertise, diagnostic quality, and personal
consultation services.  AmeriPath's team of more than 400 highly
trained, board-certified pathologists provide medical diagnostics
services in outpatient laboratories owned, operated and managed by
Ameripath, as well as in hospitals and ambulatory surgical
centers.

Specialty Laboratories supports local pathology and community-
based medicine by partnering with pathologists and hospitals to
improve patient care and reduce episodes-of-care costs.  Specialty
offers hospitals an extensive menu of highly advanced clinical
tests used by physicians to diagnose, monitor and treat disease
and a single-source solution for esoteric testing needs.

                           *     *     *

As reported in the Troubled Company Reporter on Apr. 18, 2007,
Moody's Investors Service placed the ratings of Quest Diagnostics
Incorporated under review for possible downgrade (Baa2 senior
unsecured debt rating).  The rating action follows the
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.


BALLY TOTAL: Liberation Investments Balks at Pre-Packaged Plan
--------------------------------------------------------------
Liberation Investments, L.P., and Liberation Investments, Ltd.,
said that the pre-packaged bankruptcy plan approved by Bally Total
Fitness Holding Corp.'s Board of Directors that aims to cancel all
existing equity interests and transfer all reorganized equity to
bondholders was "draconian."  Liberation Investments holds 11% of
the company's common stock.

Andrew K. Glenn, Esq., at Kasowitz, Benson, Torres & Friedman LLP,
who represents Liberation Investments, stated in a facsimile dated
June 6, 2007, that by approving the plan, the company has, in
effect, abandoned its fiduciary duties to shareholders.

                          Contentions

Mr. Glenn states that it more than a coincidence that Tennenbaum
Capital Partners, who proposed the plan and is the largest holder
of the company's subordinated debt, sold its Ball stock while
still in negotiations with the company in February 2007.  Mr.
Glenn contends that the Board seems to have ignored viable
alternatives, including a likely sale of the company's assets.
Further, the board had announced the pre-packaged plan while at
least one party had signed a confidentiality agreement with the
company to propose an alternative transaction.

Mr. Glenn also discloses that Jefferies & Company, the company's
financial advisor, failed to return numerous calls from Liberation
Investments to discuss options to maximize value for the benefit
of all shareholders.

                             Demands

Mr. Glenn relates that due to the lack of interest in protection
shareholders and several vacancies in the Board, Liberation
Investments wants Manny Pearlman and Gregg Frankel to be appointed
as directors.

Liberation Investments also wants access to all of the company's
books and records relating to the pre-packaged plan.

Mr. Glenn says that Liberation Investments reserves the right to
seek relief pursuant to Section 220 of the Delaware General
Corporation Law  and Bankruptcy Rule 2004.

Mr. Glenn concludes that although Liberation Investments is
prepared to vindicate its rights both in and out of bankruptcy
court, it is also ready, able and willing to negotiate a
consensual resolution of the matter.

                    About Bally Total Fitness

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial
operator of fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada (R) brands.  Bally offers a unique
platform for distribution of a wide range of products and services
targeted to active, fitness-conscious adult consumers.

                          *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain holders
of over 80% in amount of its 9-7/8% Senior Subordinated Notes due
2007.  The company plans to implement the proposed restructuring
through a pre-packaged Chapter 11 bankruptcy filing of the parent
company, Bally Total Fitness Holding Corporation, and certain of
its subsidiaries.


BALLY TOTAL: Wattles Capital Unloads Shares of Common Stock
-----------------------------------------------------------
Wattles Capital Management, LLC, disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission that on June 4,
2007, it sold an aggregate of 956,300 shares of Bally Total
Fitness Holding Corp.'s Common Stock.  WCM had previously sold 2.5
million shares on June 1.

As of June 1, 2007, WCM has ceased to be beneficial owners of more
than 5% of the shares of Bally's Common Stock.

                    About Bally Total Fitness

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial
operator of fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada (R) brands.  Bally offers a unique
platform for distribution of a wide range of products and services
targeted to active, fitness-conscious adult consumers.

                          *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain holders
of over 80% in amount of its 9-7/8% Senior Subordinated Notes due
2007.  The company plans to implement the proposed restructuring
through a pre-packaged Chapter 11 bankruptcy filing of the parent
company, Bally Total Fitness Holding Corporation, and certain of
its subsidiaries.


BALLY TOTAL: Michael Feder Named as Chief Operating Officer
-----------------------------------------------------------
Bally Total Fitness Holding Corporation disclosed that Michael
Feder has joined the company as Chief Operating Officer and will
assume broad leadership responsibilities for all operations.

Mr. Feder replaces former Chief Operating Officer John Wildman,
who will become Interim Chief Marketing Officer and Senior Vice
President, Sales.

The company also said that it is continuing its search for a
permanent CEO.

Mr. Feder is a Managing Director at AlixPartners, a financial
advisory firm specializing in business performance improvement and
corporate restructuring initiatives.  He brings more than 35 years
of senior operating experience to Bally Total Fitness, including
an extensive background in transitional management and performance
improvement services.  Additionally, he has served in a variety of
advisory and interim leadership roles at other corporations, where
he has demonstrated his capabilities in liquidity generation and
cash management, executing effective cost reduction initiatives,
and developing new business models in response to evolving
markets.

Bally Interim Chairman and Chief Restructuring Officer Don R.
Kornstein commented, "We are excited that Michael has decided to
join our team as we navigate through our operational and financial
restructuring.  He brings broad leadership skills and experience
in successfully managing turnarounds to his new role at Bally, and
will play a key leadership role as we move to become operationally
stronger as a company.  Michael will have the additional support
of his team at AlixPartners, which will be working closely with
our field organization to implement the adjustments necessary to
successfully restructure Bally Total Fitness."

John Wildman has been with Bally Total Fitness for over 27 years,
and most recently served as the Company's Chief Operating Officer.
He replaces Jim McDonald as interim CMO, and will continue to
oversee the sales organization as Senior Vice President, Sales.
The integration of sales, marketing and back office collections is
being implemented to improve the Company's overall results.

Don R. Kornstein added, "John brings a depth of institutional
knowledge about the Company that will prove invaluable to our
strategy of reshaping Bally Total Fitness for future profitable
growth.  His energy and enthusiasm have positively affected our
field teams and thereby shaped their interaction with our members.
Our brand remains well recognized as a leader in the fitness
sector, and John's hard work and dedication will continue to be a
driving force behind our success in strengthening the brand
consistent with our improved operations."

Mr. Feder currently serves as an advisor to Calpine Corporation.
His role at Calpine is being transitioned to several team members
that have been working with him at the company.  Prior to that, he
served in a variety of interim management roles at companies
including InteliStaf, a privately held company in the nurse-
staffing industry, Avado Brands, Inc., a $300 million casual
dining restaurant operator, and DIRECTV - Latin America, a leading
pan-regional provider of direct-to-home satellite television
entertainment to Latin America.

                    About Bally Total Fitness

Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(NYSE: BFT) -- http://www.Ballyfitness.com/-- is a commercial
operator of fitness centers in the U.S., with over 375 facilities
located in 26 states, Mexico, Canada, Korea, China and the
Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R)
and Sports Clubs of Canada (R) brands.  Bally offers a unique
platform for distribution of a wide range of products and services
targeted to active, fitness-conscious adult consumers.

                          *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Bally Total Fitness reached an agreement in principle on the
proposed terms of a consensual restructuring with certain holders
of over 80% in amount of its 9-7/8% Senior Subordinated Notes due
2007.  The company plans to implement the proposed restructuring
through a pre-packaged Chapter 11 bankruptcy filing of the parent
company, Bally Total Fitness Holding Corporation, and certain of
its subsidiaries.


BANC OF AMERICA: S&P Lifts Ratings on 11 Certificate Classes
------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on the 11
raked classes of commercial mortgage pass-through certificates
from Banc of America Commercial Mortgage Inc.'s series 2003-2 to
'AAA'.

The upgrades reflect the full defeasance of the 1328 Broadway
loan, which has a current whole-loan balance of $130.9 million.
The whole loan was participated into a pooled senior component
with a trust balance of $95.8 million and an unpooled subordinated
component totaling $35.1 million.  The subordinate note is the
sole source of cash flow for the upgraded classes.

The real estate collateral securing the loan has been replaced
with defeasance collateral that meets Standard & Poor's criteria.

                Banc of America Commercial Mortgage Inc.

    Commercial mortgage pass-through certificates series 2003-2

                                     Rating
                                     ------
                         Class    To         From
                         -----    --         ----
                         BW-A     AAA        A+
                         BW-B     AAA        A
                         BW-C     AAA        A-
                         BW-D     AAA        BBB+
                         BW-E     AAA        BBB
                         BW-F     AAA        BBB-
                         BW-G     AAA        BB+
                         BW-H     AAA        BB
                         BW-J     AAA        BB-
                         BW-K     AAA        B+
                         BW-L     AAA        B


BERRY PLASTICS: Moody's Lowers Corporate Family Rating to B2
------------------------------------------------------------
Moody's Investors Service downgraded the Corporate Family Rating
of Berry Plastics Holding Corporation to B3 from B2.  The outlook
is stable.

This rating action concludes the review for possible downgrade
initiated on May 30, 2007 following the announcement that Berry
Plastics Group, Inc. (Parent Company of Berry) was issuing a $500
million term loan.  The proceeds will be used to fund a one time
dividend.  Additional instrument rating actions are:

Moody's took these rating actions:

   -- Downgraded Corporate Family Rating to B3 from B2;

   -- Downgraded Probability of Default Rating to B3 from B2;

   -- Confirmed $1,200 million senior secured term loan due 2015
      Ba3 (LGD 2, 27%);

   -- Confirmed $225 million senior secured second lien FRN's
      due 2014 B3 (LGD 4, 65%);

   -- Confirmed $525 million senior secured second lien notes
      due 2014 B3 (LGD 4, 65%);

   -- Downgraded $265 million senior subordinated notes due 2016
      to Caa2 (LGD 5, 82%) from Caa1 (LGD 6, 90%).

These ratings of Berry Plastics Group, Inc. assigned
prospectively on May 30, 2007 are now effective:

   -- $500 million senior unsecured term loan due 2014, Caa2
      (LGD 6, 93%).

Moody's also affirmed the Speculative Grade Liquidity Rating of
SGL-2 of Berry.

The rating outlook for Berry is stable.

The ratings and outlook are subject to receipt of final
documentation.

The downgrade of the Corporate Family Rating to B3 reflects:

   (1) the erosion in credit metrics to a level more indicative
       of a B3 rating;

   (2) Moody's belief that the credit metrics will not return to
       a level more consistent with the B2 rating category until
       2010; and

   (3) the decline in enterprise value and collateral coverage
       stemming from the additional interest payments.

Berry's rating upon the consummation of the merger with Covalence
reflected an expected reduction in debt in the intermediate term
to a level more consistent with the B2 rating category.  The
issuance of additional debt weakens leverage and coverage to a
level that is indicative of a B3 rating.  Moreover, the forecasted
free cash flow over the intermediate
term is insufficient to improve these metrics to a level more
consistent with the B2 rating category.  The expected additional
interest payment for the new term loan represents a substantial
proportion of the projected cash from operations and a significant
drag on free cash flow.

The integration of Covalence is not yet complete and risks still
remain because of the difference in product lines and size as well
as the historical operating issues.  Additionally, the merger
synergies represent a substantial portion of the forecasted
financial results and are not yet assured given the continuing
integration risk.

As stated in our credit opinion dated April 11, 2007, a failure to
reduce leverage below 6.5 times in the intermediate term could
result in a downgrade.  Berry has substantially increased debt
twice in the last nine months and the ratings assigned both times
were based upon the company's promise to reduce debt over the
intermediate term.

The current ratings and outlook are predicated upon significant
debt reduction over the intermediate term. There is little room in
the rating class for negative variance in operating results or any
deterioration in credit metrics.

The Caa2 rating on the $500 million senior unsecured term loan is
two notches below the Corporate Family Rating. The issuer is the
Berry Plastics Group, Inc. which is the parent holding company of
Berry Plastics Holdings Corporation and the issue is not
guaranteed by any subsidiaries.  The rating reflects the deep
structural subordination to a significant amount of both secured
and guaranteed debt at the operating holding company, Berry
Plastics Holdings Corporation.  The rating also reflects a
loss given default of 93% and an expected loss of 25% and the
absence of coverage on an enterprise value or distressed basis.
Interest is payable in cash, PIK or a combination of 50% of each.
Covenants include limitations on the incurrence of debt liens,
asset sales, mergers, restricted payments, and future loan
guarantees.

Based in Evansville, Indiana, Berry Plastics Corporation --
http://www.berryplastics.com/-- manufactures and markets rigid
plastic packaging products.  Berry Plastics provides a wide
range of rigid open top and rigid closed top packaging as well
as comprehensive packaging solutions to over 12,000 customers,
ranging from large multinational corporations to small local
businesses.  The company has 25 manufacturing facilities
worldwide, including in Italy, England and Hong Kong and more
than 6,800 employees.  Pro forma for the recent merger with
Covalence Specialty Materials Corporation, net sales for the 12
months ended March 31, 2007 amounted to approximately $3.0
billion.


CMS ENERGY: Moody's Upgrades Rating to Ba1 on Sr. Unsec. Notes
--------------------------------------------------------------
Moody's Investors Service upgraded the long-term ratings of CMS
Energy Corporation (CMS: senior unsecured to Ba1 from Ba3) and its
subsidiary Consumers Energy Company (Consumers: senior
secured to Baa1 from Baa2), and revised the outlook of both
companies to stable from positive.

The Corporate Family Rating, Probability of Default Rating and
Speculative Grade Liquidity rating for CMS have been withdrawn.
All loss given default assessments, have also been withdrawn.

Moody's also assigned a rating of Baa1 to Consumers' $500 million
amended and restated secured credit facility terminating in 2012,
and a rating of Baa3 to CMS' $300 million amended and restated
secured credit facility terminating in 2012.

"The upgrades reflect significant improvement in CMS' business and
financial risk profile as a result of its recent completion of the
sales of its international businesses, its renewed focus on
Michigan utility operations, and its implementation of a
significant deleveraging strategy" said Laura Schumacher, Vice
President Senior Analyst.

CMS has now successfully completed the sale of its businesses in
the Middle East, Africa, India, Argentina and Venezuela as well as
the sale of certain northern Michigan gas assets.  The company has
also entered into agreements to sell its remaining non-U.S. based
businesses in Brazil, Chile and Jamaica. Year-to-date in 2007, CMS
has received sales proceeds of approximately $1.2 billion, and
anticipates an additional $300 million from the announced
agreements by year end.  Proceeds are being
used primarily for utility investment and debt repayment at the
parent company.  CMS has infused $400 million of equity into
Consumers, and will have repaid approximately $650 million of
consolidated debt by year-end.

The upgrade of Consumers reflects the reduction in CMS' overall
consolidated business risk and its publicly stated intent to
concentrate on regulated utility operations in Michigan. The
upgrade also reflects improvement in Consumers' financial and
operating risk profile resulting from the sale of the Midland
Cogeneration Venture in 2006 as well as its sale of the Palisades
nuclear facility in 2007.  The upgrade considers the significant
capital expenditure program planned at the utility,
including its planned purchase of the Zeeland gas-fired power
plant, and assumes the company will be reasonably successful in
managing its regulatory relationship with an objective of
attaining timely recovery of increased expenditures and an
opportunity to earn a fair return.

The upgrades for both CMS and Consumers reflect Moody's
expectation of improved financial performance as a result of debt
reduction and reduced cash flow volatility.  Over the near-to-
medium term, Moody's expects the ratio of cash flow from
operations excluding changes in working capital (CFO x WC) to debt
(calculated in accordance with Moody's standard analytical
adjustments) at CMS to move into the mid-teens as this same
metric at Consumers moves into the high-teens.

The stable outlooks reflect our expectation of relatively stable
cash flows generated by CMS' regulated operations, our assumption
that the company will be successful in managing its regulatory
relationships, that it will continue with its debt reduction
program as scheduled and that it will maintain a disciplined
approach to its recently re-established
dividend policy.

Ratings assigned:

   -- CMS Energy Corporation -- secured revolving credit
      facility, Baa3

   -- Consumers Energy Corporation -- secured revolving credit
      facility, Baa1

Ratings withdrawn:

   -- CMS Energy Corporation;
   -- Corporate Family Rating;
   -- Probability of Default Rating;
   -- Speculative Grade Liquidity Rating.

Ratings upgraded/assessments withdrawn:

    * CMS Energy Corporation

   -- Senior unsecured notes upgraded to Ba1 from Ba3;

   -- Preferred stock upgraded to Ba2 from Ba3 Shelf
      registration for the issuance of senior; and

   -- subordinate debt securities and preferred stock upgraded
      to (P) Ba1, (P) Ba2 and (P) Ba2 from (P) Ba3, (P) Ba3, and
      (P) Ba3 respectively.

    * CMS Energy Trust I

   -- Preferred stock and preferred stock shelf upgraded to Ba2
      and (P) Ba2 from Ba3 and (P) Ba3.

    * CMS Energy Trust IV and V

   -- Preferred stock shelf upgraded to (P) Ba2 from (P) Ba3.

    * Consumers Energy Corporation

   -- Senior secured debt upgraded to Baa1 from Baa2;

   -- Preferred stock upgraded to Baa3 from Ba2;

   -- Shelf registration for the issuance of senior secured,
      unsecured and subordinate debt securities upgraded to
      (P) Baa1, (P) Baa2 and (P) Baa3 from (P) Baa2, (P) Ba1 and
      (P) Ba2 respectively.

    * Consumers Energy Company Financing V and VI

   -- Preferred stock shelf upgraded to (P) Baa3 from (P) Ba2.

Based in Jackson, Michigan, CMS Energy Corporation is a
diversified energy holding company.  Through its regulated utility
subsidiary, Consumers Energy Company, the company provides natural
gas and electricity to almost 6.5 million of the nearly 10 million
residents in all 68 of Michigan's Lower Peninsula counties.


COMMERCIAL MONEY: Netbank Can't Assert Claims Against Royal Bonds
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of California
has issued a ruling against NetBank FSB in Commercial Money
Center, Inc.'s Chapter 7 liquidation proceeding.

Pursuant to the Court's ruling, NetBank FSB, a subsidiary of
NetBank, Inc., is ordered not to assert claims against Royal
Indemnity Company's bonds.  The Court held that NetBank had
neither an ownership interest nor a security interest in the CMC
lease payments at issue.

The litigation arose from a program in which surety bonds were
issued in the names of Royal Indemnity and other surety companies,
securing the payment of equipment leases issued by CMC, a now-
defunct leasing company.

NetBank's claims against Royal Indemnity are pending in federal
court in Cleveland.

                  About Commercial Money Center

Commercial Money Center, Inc., filed for chapter 11 protection on
May 30, 2002 in the U.S. Bankruptcy Court for the Southern
District of Florida.  The company's case was converted into a
chapter 7 liquidation proceeding on June 28, 2002.  The Florida
Bankruptcy Court ordered that all collections by the servicers and
sub-servicers under the leases be paid in escrow to the bankruptcy
trustee pending final resolution of rights to those collections.

On Sept. 18, 2002, the Florida Court transferred the Debtor's
chapter 11 case to the U.S. Bankruptcy Court for the Southern
District of California (Case No. 02-09721).  John W. Cutchin, Esq.
represents the Debtor in its liquidation proceeding.  Richard M.
Kipperman has been appointed as Chapter 7 liquidation trustee in
the Debtor's bankruptcy case.


CORD BLOOD: March 31 Balance Sheet Upside-Down by $4.7 Million
--------------------------------------------------------------
Cord Blood America Inc. reported a net loss of $1,315,775 on
revenue of $1,698,003 for the first quarter ended March 31, 2007,
compared with a net loss of $1,711,479 on revenue of $551,060 for
the same period ended March 31, 2006.

Rainmakers International's revenues increased $517,186 as a result
of additional marketing and exposure for the company's radio and
television advertising services, which resulted in the addition to
the company's customer base and increased revenue from existing
customers.  Cord's revenues, which includes the company's
umbilical cord stem cell preservation operations, increased
$629,757 or 242% to $890,150.

Cost of services increased by $573,536 as a result of
substantially higher revenues, but gross profit increased from 5%
to 35% as economies of scale, especially for the company's Cord
division, start impacting the company's results.

At March 31, 2007, the company's balance sheet showed $6,641,969
in total assets and $11,186,452 in total liabilities, resulting in
a $4,724,483 total stockholders' deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with $1,272,460 in total current assets
available to pay $11,184,506 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available for
free at http://researcharchives.com/t/s?20cd

                    Going Concern Doubt

Rose, Snyder & Jacobs, in Encino, California, expressed
substantial doubt about Cord Blood America Inc.'s ability to
continue as a going concern after auditing the company's balance
sheet for the years ended Dec. 31, 2006, and 2005.  The auditing
firm pointed to the company's recurring operating losses,
continuing use of cash in operating activities, insufficient
working capital and accumulated deficit at Dec. 31, 2006.

                       About Cord America

Headquartered in West Hollywood, California, Cord Blood America
Inc. (OTCBB: CBAI) -- http://www.cordblood-america.com/-- is the
parent company of Cord Partners, which facilitates umbilical cord
blood stem cell preservation for expectant parents and their
children.  Collected through a safe and non-invasive process, cord
blood stem cells offer a powerful and potentially life-saving
resource for treating a growing number of ailments, including
cancer, leukemia, blood, and immune disorders.

The company, through its subsidiary Career Channel Inc., d/b/a
Rainmakers International, also provides television, radio and
internet advertising services to businesses that sell family based
products and services.


CUSTOM FOOD: Committee Wants Storch Amini as Special Counsel
------------------------------------------------------------
The Official Committee of Unsecured Creditors of Custom Food
Products Inc. asks the U.S. Bankruptcy Court for the District of
Delaware for authority to retain Storch Amini & Munves PC as its
as special counsel, nunc pro tunc, as of May 18, 2007.

Storch Amini will:

     a. investigate the financial and other business affairs of
        the Debtor;

     b. investigate any actions taken by the Debtor's board of
        directors, senior management or lenders which in Storch
        Amini's professional judgment could lead to a recovery for
        the Debtor's estate or the Debtor's unsecured creditors;

     c. investigate any potential causes of action that may arise
        under the Debtor's director's and officer's insurance
        policy; and

     d. file and prosecute any viable claims arising out of the
        above.

The Committee proposes to retain Storch Amini, subject to Court
approval, on a contingency fee basis.  Before a complaint is filed
or adversary proceeding initiated, a contingency fee of 15% of any
recovery will become due and owing to Storch Amini upon any
settlement.  After a complaint is filed or an adversary proceeding
initiated, a contingency fee of one-third or about 33.3% of any
recovery will become due and owing to Storch Amini upon any
settlement or judgment in any case that is filed by Storch Amini.
The contingency fee is to be paid solely from the proceeds of any
settlement or judgment.

In the event of a structured settlement or payments made over
time, Storch Amini will be entitled to take their fee based on a
present value calculation.  In the event of a settlement involving
non-cash compensation, or any further undertaking by Storch Amini
that is not in the nature of filing any claims but nevertheless
benefits the estate or unsecured creditors, and whose monetary
value is not readily ascertainable, compensation will be
determined by the Court commensurate with the results achieved and
the risk assumed by counsel.

In the Committee's opinion, employing Storch Amini is in the best
interests of the Debtor's estate and creditors.

The firm can be reached at:

          Storch Amini & Munves PC
          140 East 45th Street
          New York, NY 10017
          Telephone: (212) 490-4100
          http://www.samlegal.com/

Based in Carson, California, Custom Food Products Inc., fka Center
of the Plan Foods, Inc. -- http://www.customfoodproducts.com/--
develops, manufactures and markets value-added meat, poultry, and
pork products sold to the foodservice industry and manufacturers
of packaged foods.  The Debtor filed for Chapter 11 protection on
April 13, 2007 (Bankr. D. Del. Case No. 07-10495).  Laura Davis
Jones, Esq., at Jones Pachulski Stang Ziehl Young Jones &
Weintraub, LLP, represents the Debtor in its restructuring
efforts.  In its schedules, the Debtor disclosed total assets of
$69,698,974 and total debts of $47,822,711.


CWABS ASSET: Moody's Rates Classes BV & BF Certificates at Ba1
--------------------------------------------------------------
Moody's Investors Service assigned a Aaa rating to the senior
certificates issued by CWABS Asset-Backed Certificates Trust 2007-
8 and ratings ranging from Aa1 to Ba1 to the subordinate
certificates in the deal.

The securitization is backed primarily by fixed rate and
adjustable rate, first lien subprime mortgage loans. The loans
were originated by Countrywide Home Loans, Inc. and acquired by
Countrywide Financial Corporation.  The ratings are based
primarily on the credit quality of the loans and on protection
against credit losses from the lender paid mortgage insurance
policies provided Mortgage Guaranty Insurance Corporation.
The ratings also benefit from subordination, an interest rate swap
agreement, excess interest and overcollateralization. Moody's
expects collateral losses to range from 3.75% to 4.25%.

Countrywide Home Loans Servicing LP will act as master servicer.

The complete rating actions are:

   * CWABS Asset-Backed Certificates Trust 2007-8

   * Asset-Backed Certificates, Series 2007-8

                   Class 1-A-1, Assigned Aaa
                   Class 1-A-2, Assigned Aaa
                   Class 2-A-1, Assigned Aaa
                   Class 2-A-2, Assigned Aaa
                   Class 2-A-3, Assigned Aaa
                   Class 2-A-4, Assigned Aaa
                   Class A-R, Assigned Aaa
                   Class M-1, Assigned Aa1
                   Class M-2, Assigned Aa2
                   Class M-3, Assigned Aa3
                   Class M-4, Assigned A1
                   Class M-5, Assigned A2
                   Class M-6, Assigned A3
                   Class M-7, Assigned Baa1
                   Class M-8, Assigned Baa2
                   Class M-9, Assigned Baa3
                   Class BV, Assigned Ba1
                   Class BF, Assigned Ba1


DOROTHY O'CONNOR: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Dorothy B. O'Connor
        aka Dorothy Beverly Lindo
        dba Virginia's Home Assisted Living
        8 Pleasanton Street
        Dorchester, MA 02121

Bankruptcy Case No.: 07-13517

Chapter 11 Petition Date: June 5, 2007

Court: District of Massachusetts

Debtor's Counsel: William T. Stevens, Esq.
                  98 North Washington Street, Suite 305
                  Boston, MA 02114
                  Tel: (617) 720-0991

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

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


DUNE ENERGY: Completes Sale of 36000 Shares to Jefferies for $36MM
------------------------------------------------------------------
Dune Energy, Inc., on June 5, 2007, completed the sale of an
additional 36,000 shares of their 10% Senior Redeemable
Convertible Preferred Stock to Jefferies & Company, Inc. for an
aggregate purchase price of $36 million pursuant to that option
previously granted to the Initial Purchaser under that certain
purchase agreement, dated May 1, 2007, between the company and the
Initial Purchaser.

The rights, preferences, powers, limitations and other terms of
the Additional Shares are set forth in that Certificate of
Designations filed by the company with the Secretary of State of
the State of Delaware on May 15, 2007.

The Additional Shares are subject to that Preferred Stock
Registration Rights Agreement, dated May 15, 2007, previously
executed by the company whereby we agreed to have filed and
declared effective a registration statement covering the Preferred
Stock and the shares of the company's common stock issuable upon
conversion of the Preferred Stock. Failure by the company timely
to file and/or have declared effective such registration statement
will result in the imposition of certain penalties, in either cash
or additional shares of the company's common stock.

The Additional Shares were not registered under state or federal
securities laws at the closing and were offered and sold by the
company to the Initial Purchaser pursuant to an exemption from the
registration requirements of the Securities Act of 1933, as
amended provided by Section 4(2) of the Act.

                          About Dune Energy

Headquartered in Houston, Texas, Dune Energy Inc. (Amex: DNE) --
http://www.duneenergy.com/-- is an independent exploration and
development company, with operations focused along the
Louisiana/Texas Gulf Coast and the North Texas Fort Worth Basin
Barnett Shale.  Dune will continue to exploit its existing asset
base, seek accretive acquisitions, and enter into additional joint
venture drilling programs.

                          *     *     *

As reported in the Troubled Company Reporter on May 2, 2007,
Moody's Investors Service assigned first-time ratings to Dune
Energy Inc., including a Caa2 Corporate Family Rating, Caa2
Probability of Default Rating, and a Caa2 rating (LGD 4, 50%) on
its proposed $285 million of senior secured notes due 2012.

At the same time, Standard & Poor's Ratings Services assigned its
'B-' corporate credit rating to oil and gas exploration and
production company Dune Energy Inc. In addition, S&P assigned a
'B-' rating and '3' recovery rating, indicating S&P's expectation
of meaningful (50%-80%) recovery of principal in the event of a
payment default, to the company's proposed $285 million senior
secured notes due 2012.


DVI MEDICAL: Fitch Holds Junk Ratings on Seven Note Classes
-----------------------------------------------------------
Fitch Ratings has taken these actions on the long-term and
Distressed
Recovery ratings for the DVI transactions:

  DVI Receivables VIII LLC, Series 1999-1

     -- Class C, D, and E notes, currently rated 'C/DR6', are
        withdrawn.

  DVI Receivables XI LLC, Series 2000-1

     -- Class A-4 notes remain at 'CC' and DR lowered to 'DR3'
        from 'DR2';

     -- Class B, C, D and E notes remain at 'C/DR6'.

  DVI Receivables XVI LLC, Series 2001-2

    -- Class A-3 and A-4 notes remain at 'CC' and DR lowered to
       'DR3' from 'DR2';

    -- Class B, C, D, and E notes remain at 'C/DR6'.

  DVI Receivables XIX LLC, Series 2003-1

    -- Class A-3a and A-3b notes remain at 'CCC' and DR lowered
       to 'DR3' from 'DR2';

     -- Class B, C-1, C-2, D-1, D-2, E-1, and E-2 notes remain
        at 'C/DR6'.

The ratings on these DVI transactions remain unchanged:

  DVI Receivables X LLC, Series 1999-2

    -- Class A-4, B, C, D and E notes 'C/DR6'.

  DVI Receivables XII LLC, Series 2000-2

    -- Class A-4 notes 'CCC/DR1';
    -- Class B notes 'CC/DR4';
    -- Class C notes 'CC/DR5';
    -- Class D and E notes 'C/DR6'.

  DVI Receivables XIV LLC, Series 2001-1

    -- Class A-4 notes 'CC/DR1';
    -- Class B notes 'CC / DR4';
    -- Class C and D notes 'CC/DR5';
    -- Class E notes 'C/DR6'.

  DVI Receivables XVII LLC, Series 2002-1

    -- Class A-3a and A-3b notes 'CCC/DR4';
    -- Class B, C, D, and E notes 'C/DR6'.

  DVI Receivables XVIII LLC, Series 2002-2

    -- Class A-3a and A-3b notes 'CCC/DR1';
    -- Class B notes 'CC/DR4';
    -- Class C notes 'CC/DR6';
    -- Class D and E notes 'C/DR6'.

Fitch's actions are based on continued loan performance
deterioration as reflected in the servicer reports for the period
ended April 30, 2007.  Since last review on April 5, 2007, Fitch
noted increasing delinquency levels in eight of the transactions,
as well as an increasing accumulation of interest shortfalls in
five of the transactions.  Using assumptions consistent with
historical DVI securitization performance, Fitch ran a series of
cash flow runs for each transaction to determine the appropriate
rating movements, if any.

Fitch has had discussions with U.S. Bancorp Portfolio Services,
which replaced DVI, Inc., as servicer for each of the
securitizations under the terms of each transaction's Contribution
and Servicing Agreements in February 2004.  Since taking over
servicing duties, USBPS has been successful in working out and
realizing recoveries on previously defaulted contracts.

Fitch will continue to closely monitor performance of the
transactions, will have regular contact with USBPS, and may raise,
lower or withdraw ratings as appropriate.


EDDIE BAUER: ISS Urges Shareholders to Approve Directors' Election
------------------------------------------------------------------
Institutional Shareholders Services has changed its previous
recommendation and is now advising its clients to approve the
election of all nine members of Eddie Bauer Holdings, Inc.'s Board
of Directors for one year terms and to ratify the appointment of
the company's independent registered accounting firm.

ISS continues to recommend approval of the 2007 amendment and
restatement of the 2005 Eddie Bauer Holdings, Inc. Stock Incentive
Plan.

On June 6, 2007, the company sent a letter to ISS clarifying the
nature of the tax fees paid by the company to its independent
registered public accounting firm in 2006.  In its recommendation
dated June 7, 2007, ISS concluded, "Previously, ISS did not
support the ratification of the company's auditors because other
fees, given the disclosure available, represented more than 50% of
total fees.  Given the new disclosure, we are changing our vote
recommendation to support the ratification of BDO Seidman as the
company's auditors for the current fiscal year.  For similar
reasons, ISS is changing its WITHHOLD vote recommendation of the
Audit Committee members, and recommend a vote FOR independent
outsiders John C. Brouillard, Laurie M. Shahon, and Kenneth M.
Reiss."

                        About Eddie Bauer

Based 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 about 380 stores throughout the
U.S. and Canada, through catalog sales and online at
http://www.eddiebaueroutlet.com/. The company also participates
in joint venture partnerships in Japan and Germany and has
licensing agreements across a variety of product categories.
Eddie Bauer employs 10,000 part-time and full-time associates in
the U.S. and Canada.

                          *     *     *

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

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


ELLIOTT HOLDING: Case Summary & 169 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Elliott Holding Company
        3000 Cabot Boulevard West, Suite 200
        Langhorne, PA 19047

Bankruptcy Case No.: 07-18142

Debtor affiliates filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        Bella Vista Associates, L.L.C.             07-18134
        Forest Walk Associates, L.L.C.             07-18135
        Stony Brook Court Associates, L.L.C.       07-18136
        Wilshire Woods Associates, L.L.C.          07-18138
        S.P. Associates, L.L.C.                    07-18139
        Heritage Associates NJ, L.P.               07-18140
        Northgate at Heritage, L.L.C.              07-18141
        The Elliott Building Group, Ltd.           07-18143
        High Meadow Estates Associates, L.P.       07-18144
        Preserves at Hilltown Associates, L.P.     07-18145
        Ridings at Brandywine Associates, L.P.     07-18146
        Rydal Waters Associates, L.P.              07-18147
        Clover View Associates, L.P.               07-18148
        Promenade at Sycamore, L.P.                07-18149
        Elliott Residential, L.L.C.                07-18150
        New Hope Realty, Inc.                      07-18151
        EBG Real Estate Services, Inc.             07-18153
        Land Solutions, Inc.                       07-18154

Type of Business: The Debtor is a home builder.  See
                  http://www.elliottbuildinggroup.com/

Chapter 11 Petition Date: June 10, 2007

Court: District of New Jersey (Camden)

Debtor's Counsel: Aris J. Karalis, Esq.
                  Maschmeyer Karalis, P.C.
                  413 Route 70 East, Suite 300
                  Cherry Hill, NJ 08034
                  Tel: (856) 428-8400

                            Estimated Assets       Estimated Debts
                            ----------------       ---------------
Elliott Holding Company     $1 Million to         $1 Million to
                            $100 Million          $100 Million

Bella Vista Associates,     $1 Million to         $1 Million to
L.L.C.                      $100 Million          $100 Million

Forest Walk Associates,     $1 Million to         $1 Million to
L.L.C.                      $100 Million          $100 Million

Stony Brook Court           $1 Million to         $1 Million to
Associates, L.L.C.          $100 Million          $100 Million

Wilshire Woods Associates,  $1 Million to         $1 Million to
L.L.C.                      $100 Million          $100 Million

S.P. Associates, L.L.C.     $1 Million to         $1 Million to
                            $100 Million          $100 Million

Heritage Associates NJ,     $1 Million to         $1 Million to
L.P.                        $100 Million          $100 Million

Northgate at Heritage,      $1 Million to         $1 Million to
L.L.C.                      $100 Million          $100 Million

The Elliott Building Group, $1 Million to         $1 Million to
Ltd.                        $100 Million          $100 Million

High Meadow Estates         $1 Million to         $1 Million to
Associates, L.P.            $100 Million          $100 Million

Preserves at Hilltown       $1 Million to         $1 Million to
Associates, L.P.            $100 Million          $100 Million

Ridings at Brandywine       $1 Million to         $1 Million to
Associates, L.P.            $100 Million          $100 Million

Rydal Waters Associates,    $1 Million to         $1 Million to
L.P.                        $100 Million          $100 Million

Clover View Associates,     $1 Million to         $1 Million to
L.P.                        $100 Million          $100 Million

Promenade at Sycamore,      $1 Million to         $1 Million to
L.P.                        $100 Million          $100 Million

Elliott Residential,        $1 Million to         $1 Million to
L.L.C.                      $100 Million          $100 Million

New Hope Realty, Inc.       $10,000 to             Less than
                            $100,000               $10,000

EBG Real Estate Services,   $10,000 to           $100,000 to
Inc.                        $100,000            $1 Million

Land Solutions, Inc.        $10,000 to            $10,000 to
                            $100,000              $100,000

A. Elliott Holding Company's 20 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
National City Bank                                 $15,997,078
One South Broad Street
Philadelphia, PA 19107

Bernard National Loan                              $10,929,720
Investors
745 Fifth Avenue
18th Floor
New York, NY 10151

Citizens Bank                                       $5,463,547
2001 Market Street
Philadelphia, PA 19103

Key Bank                                            $3,270,685
4035 Ridge Top Road
Suite 570
Fairfax, VA 22030

Longstone Real Estate                               $3,034,999
Partners, L.L.C.
Attention: Matthew D.
Brunner
456 Main Street
Reiterstown, MD 21136

Abington Bank                                       $2,549,476
180 Old York Road
Jenkintown, PA 19046

Beneficial Savings Bank                             $2,528,744
530 Walnut Street
Philadelphia, PA 19106

P.N.C. Real Estate                                  $2,133,360
Finance
1600 Market Street
Philadelphia, PA 19103

Firstrust Bank                                      $1,976,805
15 East Ridge Pike
Conshohocken, PA 19428

The Bancorp Bank                                    $1,585,000
405 Silverside Road
Wilmington, DE 19809

Continental Bank                                    $1,573,948
620 West Germantown Pike
Plymouth Meeting, PA
19462

Atlantic Residential Fund                           $1,307,472
V, L.L.C.
465 Main Street
Reisterstown, MD 21136

Colonial Bank                                       $1,100,000
85 West Broad Street
P.O. Boc 776
Bridgeton, NJ 08302

Shelly Enterprises                                    $728,893
P.O. Box 175
Perkasie, PA 18944

Sterling Kitchen Sales,                               $741,721
Inc.
981 South Bolmar Street
Unit B
West Chester, PA 18914

Four Brothers                                         $639,905
Construction Company
920 Old Dolington Road
Newtown, PA 18940

Sunrise Concrete Co.                                  $469,702
P.O. Box 435
Rushland, PA 18956

G-Boys Excavating, Inc.                               $420,633
340 East Fleming Pike
Hammonton, NJ 08037

Ed Wood Custom Drywall                                $367,015
6 Enterprise Court
Sewell, NJ 08080

C.J.'s Mechanical, Inc.                               $329,699
1733 Glassboro Road
Williamstown, NJ 08094

B. Bella Vista Associates, LLC's Four Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Mark and Danielle Brenza                              $101,240
12 Chestnut Court
Mullica Hill, NJ 08062

Alyson E. and Eric D.                                  $98,424
Newman
2 Heron Lane
Millville, NJ 08332

Brian R. and Francine D.                               $94,080
Pomarici
38 Meadowyck Drive
Laurel Springs, NJ 08021

James and Jennifer Reilly                              $64,510
1313 Mulberry Lane
Williamstown, NJ 08094

C. Forest Walk Associates, LLC's 11 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Fortune Insulation                                     $40,000
Construction, Inc.
6599 Delilah Road
Egg Harbor Township, NJ
08234

Annette Campbell and                                   $24,690
Ernest Campbell, Jr.
119 Poplar Street
Carteret, NJ 07008

Alberto and Madeline                                   $23,254
Rivera
510 Henry Drive
Milleville, NJ 08332

Lowie and Cristine Mallari                             $21,930
Lily Shui

Timothy and Jeneen Callahan                            $20,647

Harold C. Colbert                                      $18,993

Lawrence and Viola George                              $18,628

Mitzi and Mark Cabahug                                 $18,096

William J. Thomasson                                   $16,298

Gregory and Sonya Ivanovs                              $14,995

Eunice Kwei-Ankrah and                                 $10,800
Roberta Bortu

D. Stony Brook Court Associates, LLC's Largest Unsecured Creditor:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Washington Township Tax                                 $2,031
Office
P.O. Box 1106
Turnersville, NJ 08012

E. Wilshire Woods Associates, LLC's Largest Unsecured Creditor:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Atlantic City Electric                                    $707
P.O. Box 4875
Trenton, NJ 08650

F. S.P. Associates, LLC's 20 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Christian Antczak                                      $55,323
401 St. Thomas Drive
Egg Harbor Twp., NJ 08234

Emmanuel O. Udoh                                       $54,005
700 North Franklin
Boulevard, Apartment 1408
Pleasantville, NJ 08232

Jeffry and Tina Alava                                  $51,343
95-23 133rd Street
South Richmond Hill, NY
11419

Kenneth B. and Marsha E.                               $46,460
Moore

Douglas L. and Robin L.                                $45,249
Godshall

Edgar C. and Marie Elena                               $44,203
Cajilig

Jason Sales Gonzales                                   $44,068

Donale and Ann Cheatle                                 $43,830

Efren and Ruth Aldover                                 $43,420

Louis M. and Debra L.                                  $43,187
Sbarra

Harry and Tammie Brubaker                              $42,990

Thomas and Kelly Burns                                 $42,909

Bruce Muenzenberger                                    $41,866

James Yu and Xilin Liu                                 $41,378

Arwin V. and Sona N. David                             $41,225

Joseph C. and Maria G.                                 $40,423
Fernandes

Judy Virgiline and Thomas                              $40,309
Cruz

Ba Ly and Betty D. Ngo                                 $39,656

Maria J. and Stephen Catral                            $38,705

Elwood and Viviana Faunce                              $38,640

G. Heritage Associates NJ, LP's Two Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Nicholas and Lucille M.                                $29,273
Yushchak
400 Smith Lane
Runnemede, NJ 08078

Alberta Weintraub                                      $25,000
2524 Brookfield Street
Vineland, NJ 083613

H. Northgate at Heritage, LLC's 16 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Charles and Mary M. Cannuli                            $54,357
334 Oakland Avenue
Bellmawr, NJ 08031

Albert Monte and Lorraine                              $41,769
Casalunovo
14 Vicksburg Road
Laurel Springs, NJ 08021

Michael P. and Patricia                                $39,676
Cooney
448 Kismet Road
Philadelphia, PA 19115

Richard and Florence G.                                $38,285
Fioravanti

Alphone W. and Renee Orio                              $37,520

Jennifer Thomas                                        $35,599

Robert D. and Carolyn J.                               $33,930
Dickson

Terence and Catherine A.                               $33,078
McCarthy

Gloria A. Chestnut                                     $32,457

Gisela D. Geinger                                      $32,887

Carl H. and Amelia Brown                               $31,944

Marie D. Gushue                                        $30,680

George D. Yarsunas                                     $30,562

Richard T. Whelan                                      $30,523

Dorothy Houseman                                       $28,350

Anthony F. and Frances                                 $19,708
Natale

I. The Elliott Building Group, Ltd's 20 Largest Unsecured
Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Bank of America                                    $16,722,337
111 Westminster Street
Providence, RI 02903

Peninsula Bank                                     $10,400,000
1520 Ringling Boulevard
Sarasota, FL 34236

Wilmington Trust                                    $9,280,500
1100 North Market Street
Wilmington, DE 19890

Citizens Bank                                       $5,463,547
2001 Market Street
Philadelphia, PA 19103

Key Bank                                            $3,720,685
4035 Ridge Top Road
Suite 570
Fairfax, VA 22030

Longstone Real Estate                               $3,034,999
Partners, L.L.C.
Attention: Matthew D.
Brunner
456 Main Street
Reiterstown, MD 21136

Chesapeake 5th Avenue                               $2,096,337
Partners, L.L.C.
Main Street
Reiterstown, MD 21136

Firstrust Bank                                      $1,976,805
15 East Ridge Pike
Conshohocken, PA 19428

Atlantic Residential Fund                           $1,307,472
V, L.L.C.
465 Main Street
Reisterstown, MD 21136

Sunsrise Concrete Co.,                                $849,561
Inc.
P.O. Box 435
Rushland, PA 18956

Sterling Kitchen Sales,                               $733,220
Inc.
981 South Bolmar Street,
Unit B
West Chester, PA 18914

Shelly Enterprises                                    $728,893
P.O. Box 175
Perkasie, PA 18944

Four Brothers Construction                            $707,621
Co.
920 Old Dolington Road
Newtown, PA 18940

G-Boys Excavating, Inc.                               $545,401
340 East Fleming Pike
Hammonton, NJ 08037

Ed Wood Custom Drywall                                $390,919
6 Enterprise Court
Sewell, NJ 08080

Murphy Architectural                                  $383,603
Group
1450 East Boot Road
Suite 100B
West Chester, PA
19380-5927

Van Cleef Engineering                                 $353,326
Association
501 North Main Street
Doylestown, PA 18901

William Bowman Associates,                            $352,309
Inc.
551 Cooper Road
P.O. Box 330
West Berlin, NJ 08091-0330

C.J.'s Mechanical, Inc.                               $346,783
1773 Glassboro Road
Williamstown, NJ 08094

Allan A. Meyers                                       $339,528
P.O. Box 98
Worcester, PA 19490

J. High Meadow Estates Associates does not have any creditors who
are no
   insiders.

K. Preserves at Hilltown Associates, LP's Six Largest Unsecured
Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Joseph and Marguerite                                  $74,190
Cooper
4205 Minnie Lane
Hatboro, PA 19040

Brian Ricca                                            $73,400
105 Brighton Court
Perkasie, PA 18944

Daniel and Mary Hojlo                                  $53,913
607 Bellflower Boulevard
Warrington, PA 18976

David and Heather Weber                                $45,000

Jonathan and Janet Russell                             $43,061

Howard and Maryellen Downs                             $33,950

L. Ridings at Brandywine Associates, LP's Largest Unsecured
Creditor:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Comcast Cable                                             $335
P.O. Box 3005
Southeastern, PA
19398-3005

M. Rydal Waters Associates, LP's 15 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
J.B. Constructors, Inc.                               $109,469
P.O. Box 1108
Buckingham, PA 18912

James J. and Geraldine V.                             $100,456
Clark
356 Evergreen Road
Jenkintown, PA 19046

Lydia Wilson Parker                                    $96,409
1388 Lindbergh Avenue
Philadelphia, PA 19001

Wrenton and Donna Wright                               $74,340

Van Cleef Engineering                                  $71,094
Association

Shaheed and Jamilia Sanders                            $41,739

Lloyd and Sarah Mitchell                               $40,245

Sunrise Concrete Company,                              $29,932
Inc.

Keystone Municipal Engineer                            $11,500

Blue Flame Gas Service                                    $596

New View Home Remodelers,                                 $500
Inc.

Relief Rentals, Inc.                                      $395

Waste Management of PA, Inc.                              $302

Nationwide Exterminating                                  $164

Aqua Pennsylvania, Inc.                                    $76

N. Clover View Associates, LP's Two Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Margaret M. and Kenneth J.                             $86,142
Del Rossi
12028 Lake Estates Avenue
Baton Rouge, LA 70810

Earl Wallo and Christa L.                              $74,670
Graback-Wallo
225 Merion Lane
Easton, PA 18042

O. Promenade at Sycamore, LP's Three Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Beneficial Savings Bank                             $1,425,000
530 Walnut Street
Philadelphia, PA 19106

Van Cleef Engineering                                 $123,292
Association
339 Amwell Road
P.O. Box 5877
Hillsborough, NJ 08844

P.E.C.O. Energy                                            $18
P.O. Box 37629
Philadelphia, PA 19101

P. Elliott Residential, LLC does not have any creditors who are
not insiders.

Q. New Hope Realty, Inc's Nine Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Klunk & Millan Advertising                              $2,260
1431 West Chew Street
Allentown, PA 18102-3658

Joseph M. Adams, Esq.                                   $1,225
200 Highpointe Drive
Suite 209
Chalfont, PA 18914

REAMARK                                                   $869
10095 Scripes Ranch Court
Suite 100
San Diego, CA 92131

State of New Jersey                                       $459
Division of Taxation

Construction Clean-Up,                                    $270
L.L.C.

Uniforce Staffing Service                                 $222

Commonwealth of PA                                        $210

R.C.N.                                                    $160

Parkland School District                                   $94
Tax Office

R. EBG Real Estate Services, Inc's 20 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Philadelphia Newspapers,                               $59,056
Inc.
P.O. Box 822063
Philadelphia, PA
19182-2063

Brendan Boroski                                        $39,598
Advertising
320 North Broad Street
Doylestown, PA 18901

Gannett N.J. Newspaper                                 $25,181
3601 Highway 66
Box 1550
Neptune, NJ 07754-1556

New Home Guide                                         $24,585

Philadelphia Business                                  $22,098
Journal

Broad Street Magazine                                  $14,087

Lamar Advertising                                      $13,065

Courier Post                                           $12,393

Prudential Fox and Roach                               $12,261

Edgar Cajilig                                          $10,887

Move Sales, Inc.                                       $10,802

C.B.S. Outdoor                                         $10,000

South Jersey Newspapers                                 $9,771

Keller Williams                                         $9,540

Atlantic City Weekly                                    $9,500

Harmon Homes                                            $9,076

Clear Channel Outdoor                                   $6,000

P.S.E.&G.                                               $5,703

Century 21 Alliance                                     $5,653

Atlantic City Electric                                  $5,650

S. Land Solutions, Inc's 18 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Brickhouse Environmental                               $16,341
515 South Franklin Street
West Chester, PA 19382

Van Cleef Engineering                                  $15,908
Associates
501 North Main Street
Doylestown, PA 18901

Ecosign Mountain Resort                                 $9,646
Pl.
Box 63
Whistler B.C. Canada VON
1B0

Pennoni Associates, Inc.                                $7,339

Thomas Comitta Associates                               $6,797

Hanley Wood                                             $5,601

Everland, Shourds &                                     $4,000
Associates

William G. Kozub                                        $2,127

Abstract Services and                                   $1,600
Productions

A.L.M. Media, Inc.                                        $969

Morris & Ritchie                                          $880
Associates

Robinson and Andujar                                      $702

Newman, Williams, Mishkin                                 $612

Flaster Greenberg                                         $339

P.A. Housing Research                                     $190
Center

Penn State University                                     $180

Builders League of South                                  $100
Jersey

McCaffrey's Commissary,                                    $53
Inc.


ENERGY PARTNERS: Retains Jones Walker to Conduct Investigation
--------------------------------------------------------------
Energy Partners, Ltd., disclosed that on June 8, 2007, it retained
the law firm of Jones, Walker, Waechter, Poitevent, Carrere &
Denegre, L.L.P. to conduct an independent investigation into
possible environmental violations at the company's East Bay field
arising out of on-site governmental agency inspections conducted
in the field in late 2005 and early 2006.

Earlier last week, the company met with representatives of the
U.S. Attorney for the Eastern District of Louisiana in New
Orleans, the U.S. Environmental Protection Agency and the U.S.
Coast Guard and was informed that they are conducting an
investigation into possible criminal violations arising out of
those on-site inspections.

The company intends to cooperate fully with the government's
investigation and said that operations in the field remain
unaffected by the investigation.

                 About Energy Partners Ltd.

Founded in 1998, EPL is an independent oil and natural gas
exploration and production company based in New Orleans,
Louisiana. The Company's operations are focused along the U. S.
Gulf Coast, both onshore in south Louisiana and offshore in the
Gulf of Mexico.

                        *    *     *

As reported in the Troubled Company Reporter on March 14, 2007,
Moody's Investors Service downgraded Energy Partners Ltd.'s
Corporate Family Rating to B3 from B2 and its Probability of
Default Rating to B3 from B2 following the conclusion of the
company's strategic alternative process.


ESPERANZA DULAY: Case Summary & Six Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Esperanza G. Dulay
        1244 Mayhew Drive
        San Jose, CA 95121

Bankruptcy Case No.: 07-51688

Chapter 11 Petition Date: June 5, 2007

Court: Northern District of California (San Jose)

Debtor's Counsel: Charles E. Logan, Esq.
                  95 S Market Street, Suite 660
                  San Jose, CA 95113
                  Tel: (408) 995-0256

Total Assets: $1,354,132

Total Debts:  $2,275,798

Debtor's Six Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Wells Fargo                 automobile loan           $287,993
711 West Broadway
Tempe, AZ 85282

                                                       $56,300

G.M.A.C.                    automobile loan           $146,553
P.O. Box 10729
Midland, TX 792702-7729

Chase                       automobile loan           $103,161
14800 Frye Road
Fort Worth, TX 76155

Citizens                    automobile loan            $80,000

U.S. Bank                   automobile loan            $45,177

Daimler Chrysler            automobile loan            $34,000


ESSAR GLOBAL: Gets Investment Canada Act Approval on Acquisition
----------------------------------------------------------------
Essar Global Limited has obtained, through its wholly owned
subsidiary Essar Steel Holdings Limited, approval under the
Investment Canada Act in connection with its proposed acquisition
of all of the outstanding common shares of Algoma Steel Inc.

Essar has now received all regulatory approvals necessary to
complete the arrangement.  The arrangement will still need the
approval of a Canadian court.

Essar Global Chairman, Shashi Ruia, said, "I am delighted with the
Minister's approval... The acquisition of Algoma will prove to be
of enormous benefit to both Essar and Algoma, as well as the City
of Sault Ste. Marie, the province of Ontario and Canada as a
whole."

"In Essar," Mr. Ruia added, "Algoma will have new ownership
committed to investing in Algoma's facilities to support its
growth and sustainability.  We look forward to completing the
arrangement, and welcoming Algoma into the Essar family."

Mr. Denis Turcotte, who will continue as Chief Executive Officer
of Algoma, also welcomed the news.  According to Mr. Turcotte,
"Essar's acquisition of Algoma will enable us to manage new growth
opportunities and migration of the best technological and
engineering practices in both organizations.  I am confident that
this is a win-win situation for all Algoma stakeholders, including
Algoma employees but also the local community of Sault Ste. Marie
and the province of Ontario."

In order to obtain the Minister's approval under the Investment
Canada Act, Essar has provided to the Minister a number of
important commitments in respect of Algoma's management,
operations, employees and community contributions.  The attached
Backgrounder outlines a number of the key commitments.

                        About Algoma Steel

Algoma Steel Inc. -- http://www.algoma.com/-- is an integrated
steel producer based in Sault Ste. Marie, Ontario with steel
shipments of 2.4 million tons in 2006.  Revenues, which totalled
CDN$1.9 billion in 2006, are derived primarily from the
manufacture and sale of rolled steel products including hot and
cold rolled steel and plate.

                        About Essar Global

Essar Global Ltd. -- http://www.essarglobal.com/-- is an
international conglomerate operating in six business areas -
steel, oil & gas, power, communications, shipping & logistics and
construction.  It has offices world-wide and employs approximately
20,000 people, including over 3500 persons in the United States.
The group has built a portfolio of assets with expected revenues
of $10 billion in the year to March 2008.  It owns Essar Steel
Holdings Limited, India's largest exporter of flat steel.


FALL RIVER: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------
Debtor: Fall River Village Communities, L.L.C.
        26571 Pleasant Park Road
        Conifer, CO 80433-7714

Bankruptcy Case No.: 07-15993

Type of Business: The Debtor owns river front resort homes and
                  condominiums.
                  See http://fallrivervillageresort.com/

Chapter 11 Petition Date: June 7, 2007

Court: District of Colorado (Denver)

Judge: Howard R Tallman

Debtor's Counsel: Philipp C. Theune, Esq.
                  Charles Lilly & Associates, P.C.
                  1600 Stout Street
                  11th Floor
                  Denver, CO 80202-3131
                  Tel: (303) 832-1150
                  Fax: (303) 845-6934

Total Assets: $22,000,000

Total Debts:  $10,277,068

Debtor's 20 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Cornerstone Engineering &   trade debt                $700,000
Surveying, Inc.
1692 Big Thompson Avenue,
Unit 200
Estes Park, CO 80517-8961

Robert A. Filbey                                      $500,000
Irrevocable Trust
P.O. Box 1624
Estes Park, CO 80517

The Lane Ill Group, Inc.                              $278,107
P.O. Box 637
Conifer, CO 80433

Clear Choice                                           $18,057

Poudre Valley Air                                      $17,907

K.H.O.W.                                               $17,650

R.G. Insulation                                         $9,784

Clear Channel Colorado                                  $9,505

Rechlitz Law Firm, P.C.                                 $9,490

Colorado Kitchen and Bath                               $8,145

Trail Gazette                                           $7,619

High Country Interiors &                                $7,519
Design, Inc.

Ram Glass Service                                       $6,265

Hutcherson Associates                                   $4,203

Denver Newspaper Agency                                 $4,203

Mary Williams Fine Arts                                 $3,000

D.K. Plumbing                                           $2,800

Welding By Locus                                        $2,680

Listen Up, Inc.                                         $2,461

1st In Counters                                         $2,162


FAST TEK: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: Fast Tek Group, L.L.C.
        9850 East 30th Street
        Indianapolis, IN 46229

Bankruptcy Case No.: 07-05258

Type of Business: The Debtor provides sorting, inspection, rework
                  and containment services to automotive
                  manufacturers and their suppliers.  See
                  http://www.fasttek.com/

Chapter 11 Petition Date: June 6, 2007

Court: Southern District of Indiana (Indianapolis)

Judge: James K. Coachys

Debtor's Counsel: Gary Lynn Hostetler, Esq.
                  Hostetler & Kowalik, P.C.
                  101 West Ohio Street, Suite 2100
                  Indianapolis, IN 46204
                  Tel: (317) 262-1001
                  Fax: (317) 262-1010

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.


G-STAR 2002-1: Fitch Affirms BB Rating on $3,405,253 Class D Notes
------------------------------------------------------------------
Fitch upgrades three and affirms three classes of notes issued by
G-Star 2002-1, Ltd.  These rating actions are the result of
Fitch's review process and are effective immediately:

    -- $139,931,091 class A-1MM notes affirmed at 'AAA/F1+';
    -- $62,956,183 class A-2 notes affirmed at 'AAA';
    -- $23,000,000 class BFL notes upgraded to 'AA' from 'A+';
    -- $27,300,000 class BFX notes upgraded to 'AA' from 'A+';
    -- $16,250,000 class C notes upgraded to 'BBB' from 'BBB-';
    -- $3,405,253 class D notes affirmed at 'BB'.

G-Star 2002-1 is a collateralized debt obligation that closed
April 25, 2002.  G-Star is supported by a static pool of
commercial mortgage-backed securities (CMBS; 51.3%), senior
unsecured real estate investment trust securities (REITs; 46.3%),
and asset backed securities (ABS; 2.4%).  G-Star 2002-1 is managed
by Capmark Investments LP (CDO asset manager rating of 'CAM1' for
commercial real estate assets by Fitch).

The upgrades are driven primarily by the stable credit quality of
the portfolio, the seasoning of the collateral and deleveraging of
the capital structure.  The Fitch has improved and remains in the
'BBB/BBB-' category.  According to the most recent trustee report,
dated May 18, 2007, all overcollateralization and interest
coverage ratios have improved and continue to pass their
covenants.  The underlying portfolio includes one defaulted asset
representing 2% of the $292.9 million of total collateral and
there are no other assets rated below 'B+'.

All of the CMBS assets in the portfolio were issued prior to 2003.
The highest single vintage concentration is 1998 (15.3%).  Due to
defeasance and amortization, Fitch believes that the vintage of
the underlying CMBS collateral is a positive factor in this
transaction.

Fitch conducted cash flow modeling utilizing various default
timing and interest rate scenarios to measure the breakeven
default rates going forward relative to the minimum cumulative
default rates required for the rated liabilities.

The rating of the class A-1MM and A-2 notes addresses the
likelihood that investors will receive full and timely payments of
interest, as per the governing documents, as well as the stated
balance of principal by the legal final maturity date.  In
addition, the class A-1MM note short term rating addresses the
noteholders' ability to put the notes back to the put provider on
its next applicable remarketing date, which will be no later than
six months from its prior remarketing date.  The rating on the
class B and C notes addresses the ultimate payment of interest
and principal.  The rating of the class D notes addresses the
likelihood that investors will receive their stated balance of
principal by the legal final maturity date.  The class D notes
have received approximately $6,614,747 of the initial $10,200,000
balance since closing.


GREGG APPLIANCES: S&P Rates $100 Million Senior Loan at B+
----------------------------------------------------------
Standard & Poor's Rating Services raised its corporate credit
rating on Gregg Appliances Inc. to 'B+' from 'B'.

At the same time, S&P assigned a 'B+' (the same as the corporate
credit rating on the company) issue rating and a '4' recovery
rating to Gregg's proposed $100 million senior secured term loan
B, due 2013.  The '4' recovery rating indicates the expectation
for average (30%-50%) recovery of principal in the event of
payment default.  The outlook is stable.

Pro forma for its refinancing, Indianapolis, Indiana-based Gregg
is expected to have about $100 million of debt outstanding.

"The ratings upgrade reflects the considerable deleveraging the
company has been able to achieve," said Standard & Poor's credit
analyst John Thieroff, "and the prospect that the current capital
structure is sustainable."  A positive outlook is possible in the
next six to 12 months if positive operating trends and
deleveraging continue.


H20 FIRE: Voluntary Chapter 11 Case Summary
-------------------------------------------
Debtor: H2O Fire Systems L.P.
        10420 Plano Road, Suite 105
        Dallas, TX 75238

Bankruptcy Case No.: 07-32776

Chapter 11 Petition Date: June 7, 2007

Court: Northern District of Texas (Dallas)

Judge: Harlin DeWayne Hale

Debtor's Counsel: Joyce W. Lindauer, Esq.
                  8140 Walnut Hill Lane, Suite 301
                  Dallas, TX 75231
                  Tel: (972) 503-4033
                  Fax: (972) 503-4034

Estimated Assets: $10,000 to $100,000

Estimated Debts:  $1 Million to $100 Million

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


HAWKS LANDING: Case Summary & Nine Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Hawks Landing II Corp.
        11901 Northwest 4th Street
        Plantation, FL 33325

Bankruptcy Case No.: 07-14371

Type of Business: The Debtor filed for Chapter 11 protection on
                  March 5, 2007 (Bankr. S.D. Fla. Case No.
                  07-11464).

Chapter 11 Petition Date: June 7, 2007

Court: Southern District of Florida (Fort Lauderdale)

Judge: Raymond B. Ray

Debtor's Counsel: Mark D. Cohen, Esq.
                  Mark D. Cohen, P.A.
                  4000 Hollywood Boulevard, Suite 435S
                  Hollywood, FL 33021
                  Tel: (954) 962-1166
                  Fax: (954) 962-1779

Estimated Assets: $4,026,044

Estimated Debts:  $4,942,624

Debtor's List of Nine Largest Unsecured Creditors:

   Entity                                  Claim Amount
   ------                                  ------------
Howard Wong & Steve Wang                        $82,500
c/o Joshua E. Burnett, Esq.
Burnett & Thomas, P.A.
501 East Jackson Street, Suite 200
Tampa, FL 33602

Ellis Crisson                                   $35,506
13015 Northeast 4th Terrace
Okeechobee, FL 34972

Sean Crep                                       $19,800
c/o Erik Crep, Esq.
3265 Virginia Street, Suite 23
Miami, FL 33133

Gary Crep and Melanie Crep                      $18,400

Erik Crep                                       $18,400

Primera Lobbe                                   $17,000

Gamberg & Abrams                                $10,972

American Asphalt Paving Services                $10,000

Burnett & Thomas, P.A.                           $8,070


HEALTH MANAGEMENT: Inks Pact to Sell Two Hospitals to Wellmont
--------------------------------------------------------------
Health Management Associates, Inc., said that it has signed a
definitive agreement to sell two acute care hospitals to Wellmont
Health System.

This transaction is expected to be completed on or before August
1, 2007, and is subject to various regulatory approvals.

HMA expects to use the proceeds of the sale for general corporate
purposes, which includes debt repayment.

The hospitals are:

     * Lee Regional Medical Center, Pennington Gap, Virginia
        - 80 beds

     * Mountain View Regional Medical Center, Norton, Virginia
        - 133 beds

Under the agreement, Wellmont Health System has committed to offer
employment to substantially all current employees who are in good
standing at both hospitals.

                About Health Management Associates

Health Management Associates Inc. (NYSE: HMA) --
http://www.hma-corp.com/-- owns and operates general acute care
hospitals in non-urban communities located throughout the United
States.  Upon completion of the pending transaction to sell the
125-bed Southwest Regional Medical Center, the 103-bed Summit
Medical Center, and the 76-bed Williamson Memorial Hospital, HMA
will operate 57 hospitals in 14 states with about 8,300 licensed
beds.

                          *     *     *

Health Management Associates Inc.'s proposed senior secured credit
facilities carry Moody's Investors Service Ba2 rating.  HMA also
carries Moody's Ba3 Corporate Family Rating.  The outlook for the
ratings is stable.


HERCULES OFFSHORE: S&P Rates Proposed $1.05 Bil. Facilities at BB
-----------------------------------------------------------------
Standard and Poor's Ratings Services raised the corporate credit
rating on Hercules Offshore Inc. to 'BB-' from 'B'.  The outlook
on the long-term issuer credit rating is stable.

At the same time, the ratings on Hercules were removed from
CreditWatch with positive implications, where they were placed on
March 19, 2007.

Standard & Poor's also assigned its 'BB' rating and '2' recovery
rating to Hercules' proposed $1.05 billion bank facilities,
indicating our expectation of substantial (70%-90%) recovery in
the event of a payment default.

On March 19, 2007, contract drilling and liftboat service provider
Hercules announced that it had agreed to acquire TODCO in a cash
and stock deal for $2.3 billion.  Following the acquisition,
Hercules would possess the fourth-largest jackup fleet as well as
market leadership in the liftboat and barge drilling sectors.  It
is financing the total transaction with approximately $260 million
cash, $1.5 billion of equity, and $900 million of debt.

Pro forma for the transaction, the combined entity will have
approximately $920 million in debt, adjusted for operating leases.

"The upgrade reflects Hercules' enhanced business position  (as
the fourth-largest jackup leader and a leader in liftboat and
barge drilling), improved asset and geographic diversity, and
solid credit measures for the rating," said Standard & Poor's
credit analyst Aniki Saha-Yannopoulos.  Standard & Poor's expects
that favorable near-term market conditions and revenue visibility
will enable management to materially reduce debt over the next
12-18 months.  This expectation is a significant factor in the
upgrade.

The outlook is stable.  S&P expects that Hercules' near-term
operating performance will benefit from supportive market
conditions.  A significant increase in debt, worse-than-expected
operating performance, or integration problems at Hercules could
result in negative rating actions.  A positive rating action will
be unlikely until management demonstrates a longer operating track
record with the merged entity.


HILITE INT'L: S&P Puts Low-B Ratings on Proposed $190 Mil. Loans
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Cleveland-based auto supplier Hilite
International Inc.

At the same time, Standard & Poor's assigned its 'BB-' bank loan
rating (two notches above the corporate credit rating) and '1'
recovery rating to Hilite's proposed $130 million of first-lien
senior secured credit facilities, consisting of a:

    * $25 million revolving credit facility and
    * $105 million term loan.

The bank loan rating and recovery rating indicate the likelihood
of full recovery in a default or bankruptcy, based on an
assessment of the company's enterprise value.

Standard & Poor's also assigned its 'B-' bank loan rating (one
notch lower than the corporate credit rating) and '5' recovery
rating to Hilite's proposed $60 million second-lien senior secured
term loan.  The bank loan rating and recovery rating indicate the
likelihood of modest recovery (10%-30%) in a default or
bankruptcy.

The outlook is negative.

The new credit facilities represent one part of Hilite's proposed
capital restructuring.  Proceeds from the credit facilities will
be used to refinance $145.2 million of existing debt and
repurchase $39.5 million of third-party PIK preferred stock. Pro
forma debt outstanding at close of the transaction, expected for
June 30, will total about $220 million.


HOME EQUITY: Moody's Rates Class M-11 Certificates at (P)Ba2
------------------------------------------------------------
Moody's Investors Service assigned provisional ratings to
certificates issued by IndyMac Home Equity Mortgage Loan Asset-
Backed Trust, Series INABS 2007-B.

The complete provisional rating actions are:

   * IndyMac Home Equity Mortgage Loan Asset-Backed Trust,
     Series INABS 2007-B

   * Mortgage Pass-Through Certificates, Series 2007-B

                   Class 1A-1, Assigned (P)Aaa
                   Class 1A-2, Assigned (P)Aaa
                   Class 2A-1, Assigned (P)Aaa
                   Class 2A-2, Assigned (P)Aaa
                   Class 2A-3, Assigned (P)Aaa
                   Class 2A-4, Assigned (P)Aaa
                   Class M-1, Assigned (P)Aa1
                   Class M-2, Assigned (P)Aa2
                   Class M-3, Assigned (P)Aa3
                   Class M-4, Assigned (P)A1
                   Class M-5, Assigned (P)A2
                   Class M-6, Assigned (P)A2
                   Class M-7, Assigned (P)A3
                   Class M-8, Assigned (P)Baa1
                   Class M-9, Assigned (P)Baa2
                   Class M-10, Assigned (P)Baa3
                   Class M-11, Assigned (P)Ba2

Investors should be aware that the certificates have not yet been
issued.  Upon issuance of the certificates and upon conclusive
review of all documents and information about the transaction, as
well as any subsequent changes in information, Moody's will
endeavor to assign definitive ratings, which may differ from the
provisional ratings.


ION MEDIA: Commences Exchange Offer for 13-1/4% & 9-3/4% Stock
--------------------------------------------------------------
ION Media Networks Inc. has commenced an exchange offer for any
and all of its outstanding 13-1/4% Cumulative Junior Exchangeable
Preferred Stock and any and all of its outstanding 9-3/4% Series A
Convertible Preferred Stock, as part of its recapitalization.

The company is offering, in exchange for the outstanding shares of
Senior Preferred Stock, newly-issued 11% Series A Mandatorily
Convertible Senior Subordinated Notes due 2013 and, depending upon
participation levels in the Exchange Offer, either newly-issued
12% Series A-1 Mandatorily Convertible Preferred Stock or 12%
Series B Mandatorily Convertible Preferred Stock.

As part of the Exchange Offer, the company is also soliciting
consents from holders of each series of Senior Preferred Stock to:

    (A) amend the applicable certificate of designation governing
        such series of Senior Preferred Stock to eliminate:

         a) all voting rights, other than voting rights required
            by law;

         b) its obligation to repurchase the Senior Preferred
            Stock upon a change of control;

         c) all redemption rights;

         d) in the case of the 14% Preferred Stock, all exchange
            rights; and substantially all of the restrictive
            covenants applicable to such series of Senior
            Preferred Stock, and

    (B) approve the issuance of preferred stock, including the
        Series A-1 Convertible Preferred Stock, which would rank
        senior to any unexchanged Senior Preferred Stock.

In the Exchange Offer, tendering holders will receive:

    -- For each tendered share of 14% Preferred Stock, $7,000
       principal amount of Series A Notes and $1,000 initial
       liquidation preference of the Series A-1 Convertible
       Preferred Stock, which would rank senior to any unexchanged
       Senior Preferred Stock; and

    -- For each tendered share of 9_% Preferred Stock, $4,000
       principal amount of Series A Notes and $1,000 initial
       liquidation preference of Series A-1 Convertible Preferred
       Stock.

However, if holders of 50% or less of either series of Senior
Preferred Stock tender in the Exchange Offer and, as a result, the
company does not receive the requisite approvals of the Proposed
Amendments and Senior Issuance from both series of Senior
Preferred Stock in the Consent Solicitation, then tendering
holders will receive:

   -- For each tendered share of 14% Preferred Stock, $7,500
      principal amount of Series A Notes and $500 initial
      liquidation preference of Series B Convertible Preferred
      Stock, which would rank junior to any unexchanged Senior
      Preferred Stock; and

   -- For each tendered share of 9_% Preferred Stock, $4,500
      principal amount of Series A Notes and $500 initial
      liquidation preference of Series B Convertible Preferred
      Stock.

Holders must tender all shares of 14-1/4% Preferred Stock and
9-3/4% Preferred Stock that they own and deliver the related
consents in the Consent Solicitation to participate in the
Exchange Offer.

The Exchange Offer and Consent Solicitation will expire at 12:01
A.M., New York City time, on July 10, 2007, unless extended or
terminated.

More information about the Exchange Offer and Consent Solicitation
and related transactions is detailed in an Offer to Exchange and
Letter of Transmittal and Consent.  Stockholders may obtain a free
copy of these documents by contacting D.F. King & Co. Inc., the
information agent for the Exchange Offer, at (800) 431-9643.

The securities to be offered have not been, and will not be,
registered under the Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or
an applicable exemption from the registration requirements of the
Securities Act and applicable state securities laws.  The company
is relying on Section 3(a)(9) of the Securities Act to exempt the
exchange offer from the registration requirements of the
Securities Act.

                     About ION Media Networks

ION Media Networks Inc. (AMEX: ION) -- http://www.ionmedia.tv/
-- owns and operates a broadcast television station group and ION
Television, reaching over 90 million U.S. television households
via its nationwide broadcast television, cable and satellite
distribution systems.  ION Television currently features popular
television series and movies from the award-winning libraries of
Warner Bros., Sony Pictures Television, CBS Television and NBC
Universal.  In addition, the network has partnered with RHI
Entertainment, which owns over 4,000 hours of acclaimed television
content, to provide high-quality primetime programming beginning
July 2007.  Utilizing its digital multicasting capability, ION
Media Networks has launched several new digital TV brands,
including qubo, a television and multimedia network for children
formed in partnership with Scholastic, Corus Entertainment,
Classic Media and NBC Universal, as well as ION Life, a television
and multimedia network dedicated to health and wellness for
consumers and families.

                          *     *     *

As reported in the Troubled Company Reporter on May 9, 2007,
Standard & Poor's Ratings Services placed its ratings on Ion Media
Networks Inc., including the 'CCC+' corporate credit rating, on
CreditWatch with developing implications.  The CreditWatch
placement follows TV broadcaster Ion's announcement that it
entered into an agreement with Citadel Investment Group LLC and
NBC Universal Inc. for a comprehensive recapitalization of Ion.


J.P. MORGAN: Moody's Rates Class M10 Certificates at (P)Ba1
-----------------------------------------------------------
Moody's Investors Service assigned provisional ratings to
certificates issued by J.P. Morgan Mortgage Acquisition Trust
2007-CH4.

The complete provisional rating actions are:

   * J.P. Morgan Mortgage Acquisition Trust 2007-CH4

   * Asset-Backed Pass-Through Certificates, Series 2007-CH4

                   Class A1, Assigned (P)Aaa
                   Class A2, Assigned (P)Aaa
                   Class A3, Assigned (P)Aaa
                   Class A4, Assigned (P)Aaa
                   Class A5, Assigned (P)Aaa
                   Class M1, Assigned (P)Aa1
                   Class M2, Assigned (P)Aa2
                   Class M3, Assigned (P)Aa3
                   Class M4, Assigned (P)A1
                   Class M5, Assigned (P)A2
                   Class M6, Assigned (P)A3
                   Class M7, Assigned (P)Baa1
                   Class M8, Assigned (P)Baa2
                   Class M9, Assigned (P)Baa3
                   Class M10, Assigned (P)Ba1

Investors should be aware that the certificates have not yet been
issued.  Upon issuance of the certificates and upon conclusive
review of all documents and information about the transaction, as
well as any subsequent changes in information, Moody's will
endeavor to assign definitive ratings, which may differ from the
provisional ratings.


JANICE MODICA: Voluntary Chapter 11 Case Summary
------------------------------------------------
Debtor: Janice L. Modica
        700 Revere Beach Boulevard
        Revere, MA 02151

Bankruptcy Case No.: 07-13580

Chapter 11 Petition Date: June 7, 2007

Court: District of Massachusetts (Boston)

Judge: Robert Somma

Debtor's Counsel: Gary W. Cruickshank, Esq.
                  21 Custom House Street, Suite 920
                  Boston, MA 02110
                  Tel: (617) 330-1960
                  Fax: (617) 330-1970

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.


KARA HOMES: Case Summary & 776 Largest Unsecured Creditors
----------------------------------------------------------
Lead Debtor: Kara Homes, Inc.
             197 Route 18 South, Suite 235S
             East Brunswick, NJ 08816

Bankruptcy Case No.: 06-19626

Debtor-affiliates filing separate chapter 11 petitions on
June 8, 2007:

      Entity                                     Case No.
      ------                                     --------
      The Shores at Little Egg Harbor, LLC       07-18057
      Kara of Monmouth, LLC                      07-18062
      Bridgepointe at Harbor Heights, LLC        07-18065
      Kara of Middlesex, LLC                     07-18068
      Kara at Emerald Hill, LLC                  07-18069
      Kara at Evergreen Estates, LLC             07-18070
      Kara at North Haledon, LLC                 07-18072
      Kara at Island Breeze, LLC                 07-18074
      Kara at Island Crest, LLC                  07-18075
      Kara at Island Gate, LLC                   07-18076
      Island Woods Estates by Kara Homes, LLC    07-18078
      Kara at Kensington Hill, LLC               07-18079
      Kara at Lakeshore Harbor, LLC              07-18081
      K & W Builders, Inc.                       07-18083
      Kara at Cedar Grove, LLC                   07-18085
      Sterling Woods at Barnegat, LLC            07-18086
      Kara at Tallymawr, LLC                     07-18088
      Kara at White Oak, LLC                     07-18091
      Kara at Berkeley, LLC                      07-18094
      Kara at Madison, LLC                       07-18096

Debtor-affiliates that filed separate chapter 11 petitions on
Oct. 10, 2006:

      Entity                                     Case No.
      ------                                     --------
      Kara at Hawkins Ridge, LLC                 06-19757
      Bergen Mills Estates, LLC                  06-19758
      Hartley Estates by Kara, LLC               06-19759
      Horizons at Woods Landing, LLC             06-19760
      Winding Run Estates by Kara, LLC           06-19764
      Kara at the Glen Eyre, LLC                 06-19765
      Horizons at Birch Hill, LLC                06-19767
      Kara at Crine West, LLC                    06-19770
      Sterling Acres at Monroe, LLC              06-19774
      Kara at Mt. Arlington I, LLC               06-19780
      Kara at Mt. Arlington II, LLC              06-19782
      Kara at Park Ridge Estates, LLC            06-19783

Debtor-affiliates that filed separate chapter 11 petitions on
Oct. 9, 2006:

      Entity                                     Case No.
      ------                                     --------
      Kara at Navasink, LLC                      06-19737
      Kara at Lacey, LLC                         06-19738
      The Landings at Manahawkin, LLC            06-19740
      Kara at the Tradewinds, LLC                06-19741
      Kara at Buckley Estates, LLC               06-19742
      Kara at Dayna Court, LLC                   06-19743
      Country Club Estates by Kara, LLC          06-19744
      Horizons at Woodlake Greens, LLC           06-19745
      Estates at Galloway Woods, LLC             06-19746

Type of Business: The Debtors build single-family homes,
                  condominiums, townhomes, and active-adult
                  communities.

Chapter 11 Petition Date: October 9, 2006

Court: District of New Jersey (Trenton)

Judge: Raymond T. Lyons Jr.

Debtors' Counsel: David L. Bruck, Esq.
                  Greenbaum, Rowe, Smith, Davis LLP
                  Metro Corporate Campus One
                  P.O. Box 5600
                  Woodbridge, NJ 07095
                  Tel: (732) 549-5600
                  Fax: (732) 549-1881

Financial condition of the debtor-affiliates that filed on
June 8, 2007:

     Entity                          Total Assets    Total Debts
     ------                          ------------    -----------
  The Shores at Little                     $3,444        $29,358
     Egg Harbor, LLC
  Kara of Monmouth, LLC                   $23,667        $18,572
  Bridgepointe at Harbor                 $141,339       $222,813
     Heights, LLC
  Kara of Middlesex, LLC                  $43,920        $67,865
  Kara at Emerald Hill, LLC                    $0       $564,206
  Kara at Evergreen Estates, LLC         $109,346       $120,153
  Kara at North Haledon, LLC              $41,294        $87,734
  Kara at Island Breeze, LLC              $13,473        $29,634
  Kara at Island Crest, LLC                $3,000        $13,608
  Kara at Island Gate, LLC                 $8,209        $54,208
  Island Woods Estates by                $165,921        $78,018
     Kara Homes, LLC
  Kara at Kensington Hill, LLC            $19,142        $37,389
  Kara at Lakeshore Harbor, LLC            $5,000         $3,130
  K & W Builders, Inc.                     $3,600             $0
  Kara at Cedar Grove, LLC                $11,290         $6,196
  Sterling Woods at Barnegat, LLC         $64,612        $24,382
  Kara at Tallymawr, LLC                 $374,878       $275,719
  Kara at White Oak, LLC                  $23,700           $722
  Kara at Berkeley, LLC                   $25,575        $55,028
  Kara at Madison, LLC                         $0       $309,442

Financial condition of the debtor-affiliates that filed on
Oct. 10, 2006:

     Entity                          Total Assets    Total Debts
     ------                          ------------    -----------
  Kara at Hawkins Ridge, LLC           $8,095,000     $8,700,176
  Bergen Mills Estates, LLC           $19,833,000    $14,489,513
  Hartley Estates by Kara, LLC         $2,652,000     $2,804,697
  Horizons at Woods Landing, LLC      $14,095,000    $11,626,402
  Winding Run Estates by Kara, LLC    $15,666,000     $8,261,766
  Kara at the Glen Eyre, LLC          $24,141,000    $18,554,275
  Horizons at Birch Hill, LLC         $35,136,000    $26,335,212
  Kara at Crine West, LLC             $25,228,000    $23,057,185
  Sterling Acres at Monroe, LLC        $5,668,000     $4,031,514
  Kara at Mt. Arlington I, LLC        $31,370,000    $25,045,460
  Kara at Mt. Arlington II, LLC        $3,652,000     $1,643,325
  Kara at Park Ridge Estates, LLC      $3,046,000     $3,548,807

Financial condition of the debtor-affiliates that filed on
Oct. 9, 2006:

    Entity                           Total Assets    Total Debts
    ------                           ------------    -----------
  Kara at Navasink, LLC               $15,608,000     $8,270,761
  Kara at Lacey, LLC                   $2,732,000     $2,565,849
  The Landings at Manahawkin, LLC     $36,778,000    $26,302,756
  Kara at the Tradewinds, LLC          $9,507,000     $4,882,618
  Kara at Buckley Estates, LLC        $10,447,000     $5,222,916
  Kara at Dayna Court, LLC             $2,313,608     $2,119,712
  Country Club Estates by Kara, LLC    $3,068,000     $1,813,015
  Horizons at Woodlake Greens, LLC    $18,924,000    $11,508,550
  Estates at Galloway Woods, LLC       $6,175,000     $4,375,933

A. Kara at Hawkins Ridge, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Barthelus, Renald             Deposit                   $194,078
2 Sienna Drive
Jackson, NJ 08527

Kokolus, Bernadette and       Deposit                   $183,390
Edward
3 Knightsbridge Place
Jackson, NJ 08527

Lentz, Jeffrey and Patricia   Deposit                   $138,179
75 First Street
NJ 07743

Rogulski, Al                  Deposit                   $131,835
3230 Johnson Avenue
Manchester, NJ

Al Mamum                                                $108,897

Benchmark Inc.                                          $103,096
450 Oberlin Avenue South
Lakewood, NJ 08701

A-1 Bracket                                             $100,707
145 W. Philadelphia Avenue
Morrisville, PA 19067

Moskal, Thomas and Kristine   Deposit                    $96,301
7 Spectrum Court
Jackson, NJ 08527

Billups, Jonathan and Gina    Deposit                    $87,890
62 Renee Court
Jackson, NJ 08527

Integrated Home Technologies                             $85,628
400-B Spotswood
Englishtown Road
Monroe Township, NJ 08831

James R. Ientile, Inc.                                   $84,289
28 Vanderburg Road
Marlboro, NJ 07746

Unger, Dennis and Donna       Deposit                    $81,212
4 Revere Court
Allentown, NJ 08501

Soubasis, Thomas C. and       Deposit                    $73,490
Lisa A.
33 Hickory Hill
Jackson, NJ 08527

Shanoy, Ramchandr             Deposit                    $70,990
1 Princeton Squire Lane
Princeton Junction, NJ 08550

The Esposito Group LLC                                   $51,652
8 Chatham Court
Matawan, NJ 07747

Strober Building Supply Inc.                             $45,335
81 Kresson Road
Haddonfield, NJ 08033

RWZ Inc. Stairs & Rails                                  $43,890
520 James Street
Lakewood, NJ 08701

Shoreline Plumbing &                                     $37,225
Heating
447 Stage Road
Tuckerton, NJ 08087

Lovett, Thomas and Hollyann   Deposit                    $36,000
14 Stonehendge Court
Jackson, NJ 08527

Kim, Arthur and Nancy         Deposit                    $34,472
16 Spruce Meadow Drive
Monroe Township, NJ 08831

B. Bergen Mills Estates, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Letson's Landscaping                                    $452,851
P.O. Box 765
Old Bridge, NJ 08857

Salvadore, Richard and Anna   Deposit                   $365,080
3 Talmadge Drive
Monroe Township, NJ 08831

Davis, Troy and Ana                                     $243,220
171 Shinnecock Drive
Englishtown, NJ 07726

Patel, Dipti S.               Deposit                   $221,200
17 Cheryl Lane
Monroe Township, NJ 08831

Bill Smith Photography                                  $209,772
743 Colts Neck Road
Freehold, NJ 07728

Yousuf, Mohammed and Seema    Deposit                   $195,192
2 Goldfinch Court
Piscataway, NJ 08854

Caruso, Frank and Laurie      Deposit                   $174,633
37 Eldorado Way
Monroe Township, NJ 08831

Cardile, Christopher D. and   Deposit                   $159,560
Cindy
179 Bridgetown Street
Staten Island, NY 10314

Kim, Lily and Kiyoung,        Deposit                   $153,381
Kenneth
62 Continental Circle
Totowa, NJ 07512

Kim, Young Hee                Deposit                   $152,493
9 Mallow Street
Staten Island, NY 10309

Lewis, Arthur H. and Gene D.  Deposit                   $149,873
P.O. Box 67
Piscataway, NJ 08854

F&C Professional Aluminum                               $131,900
350 Leland Avenue
Plainfield, NJ 07062

Air Consulting Services, LLC                            $131,611
301 East Ward Street
Hightstown, NJ 08520

Rele, Niket and Harsha        Deposit                   $123,997
43 Pine Ridge Drive
Edison, NJ 08820

Hogarty, Kathleen and         Deposit                   $116,208
Kenney, Robert
189 Seidman Avenue
Staten Island, NY 10312

The Esposito Group LLC                                  $110,534
8 Chatham Court
Matawan, NJ 07747

Sunrise Concrete Company                                $109,618
P.O. Box 435
Rushland, PA 18956

Delvax Investments            Deposit                   $109,000
3 Talmadge Drive
Monroe Township, NJ 08831

Ramnarian, Hardat and         Deposit                   $104,000
Patricia
122 Laguardia Avenue
Iselin, NJ 08830

Imagistics                                              $103,490
7555 E. Hampden Avenue
Denver, CO 80231

C. Hartley Estates by Kara, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Strober Building Supply                                 $179,037
Truss
81 Kresson Road
Haddonfield, NJ 08033

Builders First Source                                   $175,935
20 South Middlesex Avenue
Monroe Township, NJ 08831

Fireside Hearth & Home                                  $156,128
P.O. Box 414845
Boston, MA 02241

Wagner Electric Corp.                                   $123,570
449 Washington Road
Sayreville, NJ 08872

Geddes, David and Bonnie      Deposit                   $108,599
4 Patricia Avenue
Edison, NJ 08837

Romeo, Joseph and Pesia       Deposit                    $96,735
1494 Cedarwood Drive
Lakewood, NJ 08701

A-1 Bracket                                              $88,029
145 W. Philadelphia Avenue
Morrisville, PA 19067

Sunrise Concrete Co.                                     $85,269
P.O. Box 435
Rushland, PA 18956

C&R Plumbing & Heating Inc.                              $83,721
822 Route 9
Lanoka Harbor, NJ 08734

ADE, Inc.                                                $68,105
P.O. Box 538
Lanoka Harbor, NJ 08734

Sirchio, William and Marion   Deposit                    $62,443
1317 Warwick Lane
Lanoka Harbor, NJ 08734

Michael J. Wright                                        $49,374
Construction Co.
16 Madison Avenue
Toms River, NJ 08753

Strober Building Supply Inc.                             $27,656
81 Kresson Road
Haddonfield, NJ 08033

Adams, Rehmann & Heggan                                  $22,217
850 South White Horse Pike
Hammonton, NJ 08037

E.L. Pierson Contracting &                               $19,400
Truck
14 Reckendorfer Avenue
Elmer, NJ 08318

RWZ Inc. Stairs and Rails                                $10,473
520 James Street
Lakewood, NJ 08701

Scheer's Inc.                                            $10,335
601 Oakmont Street
Suite 400
Westmont, IL 60559

Haugland, David and Juliete   Deposit                    $10,000
39 Jacques Way
Wading River, NY 11792

Fortune Insulation Contr.                                 $8,370
Inc.
6599 Delilah Road
Egg Harbor Township
NJ 08234

Blue Ribbon Roofing and                                   $8,251
Siding
1575 Route 37 West
Toms River, NJ 08753

D. Horizons at Woods Landing, LLC's 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
C&R Plumbing & Heating                                  $272,565
822 Route 9
Lanoka Harbor, NJ 08734

Sunrise Concrete Company                                $209,246
P.O. Box 435
Rushland, PA 18956

East Lake Interiors LLC                                 $195,378
215 Edgewood Avenue
West Berlin, NJ 08091

Home Remodeling Concepts                                $148,214
4 Dale Drive
Fairfield, NJ 07004

Blue Ribbon Roofing and                                 $137,986
Siding
1575 Route 37 West
Toms River, NJ 08753

Blue Line Drywall &                                     $125,470
Insulation
500 Highway 33
Englishtown, NJ 07726

Century Kitchens, Inc.                                  $124,668
Route 309 & RR Crossing
Colmar, PA 18915

Gosline Nissen Fire                                     $117,291
Protection
P.O. Box 121
Manahawkin, NJ 08050

Arisokraft                                              $113,672
P.O. Box 75527
Chicago, IL 60675

MAC Electrical Contracts                                $103,555
1889 Route 9
Toms River, NJ 08755

A.W. Meyer Co, Inc.                                      $77,120
509 Broad Avenue
Ridgefield, NJ 07657

A-1 Bracket                                              $73,868
145 W. Philadelphia Avenue
Morrisville, PA 19067

Pollara, Joseph and Rosary    Deposit                    $70,382
20 Moore Road
Marlboro, NJ 07746

ADE, Inc.                                                $67,676
P.O. Box 538
Lanoka Harbor, NJ 08734

Cagno, James J. and Gail E.   Deposit                    $66,797
46 Milestone Drive
Ringoes, NJ 08551

Vintage                                                  $63,354
811 Sixteenth Avenue
Belmar, NJ 07719

Banner Enterprises                                       $61,060
19 Main Street
Trenton, NJ 08691

Baltera, Robert F. and Carol  Deposit                    $60,602
A.
773 Pelham Avenue
Warminster, PA 18974

TBU Companies LLC                                        $59,412
433 Middle Road
Hazlet, NJ 07730

Township of Hamilton                                     $58,080
6101 13th Street, Suite 202
Mays Landing, NJ 08330

E. Winding Run Estates by Kara, LLC's 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Contract Deposits             To be supplied          $1,100,468
[Address not provided]

Sunrise Concrete Company                                $141,453
P.O. Box 435
Rushland, PA 18956

Environmental Stone Works                               $107,117
98 Pheasant Run Road
Orwigsburg, PA 17961

Sussex Contracting, LLC                                  $95,895
236 Berkshire Avenue
Paterson, NJ 07502

Pard Contractors Inc.                                    $91,909
P.O. Box 368
South River, NJ 08882

Woodhaven Lumber &                                       $84,865
Millwork
P.O. Box 870
Lakewood, NJ 08701

Benchmark Inc.                                           $65,930
450 Oberlin Avenue South
Lakewood, NJ 08701

Flemington Dept. Store                                   $56,915
151 Route 31
Flemington, NJ 08822

Willis Construction Services                             $49,109
25B Vreeland Road
Florham Park, NJ 07932

Innovative Heating and                                   $48,448
Cooling
501 Prospect Street
Lakewood, NJ 08701

Home Remodeling Concepts                                 $45,459
4 Dale Drive
Fairfield, NJ 07004

Petruzelli Brothers                                      $38,475
1001 Shrewsbury Avenue
Shrewsbury, NJ 07702

AquaMist                                                 $33,569
Irrigation of NJ
28 James Street
South Hackensack, NJ 07606

Guardian Protective Services                             $29,634
204 Diplomat Drive
Philadelphia, PA 19113

Mastracola Plumbing                                      $22,786
1226 New Market Avenue
South Plainfield, NJ 07080

RWZ Inc. Stairs & Rails                                  $21,396
520 James Street
Lakewood, NJ 08701

Scheer's Incorporated                                    $21,093
601 Oakmont Street
Suite 400
Westmont, IL 60559

Jillette Advertising Inc.                                $20,745
746 Highway 34
Matawan, NJ 07747

Century Kitchens, Inc.                                   $20,322
Route 309 & RR Crossing
Colmar, PA 18915

First Choice Construction                                $19,590
Eatontown, NJ 07724
First Choice Construction

F. Kara at the Glen Eyre, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Contract Deposits             To be supplied            $715,062
[Address not provided]

A-1 Bracket                                             $119,664
145 W. Philadelphia Avenue
Morrisville, PA 19067

Manzo-Maroba Construction                                $81,302
Beacon Hill Place
Morganville, NJ 07751

Investors Savings Bank                                   $71,294
Attn: Alex Chiarella
101 JFK Parkway
Short Hills, NJ 07078

Fenton Tile Company                                      $62,767
P.O. Box 430
Windsor, NJ 08561

Polo Plumbing                                            $58,041
14 Charles Street
Metuchen, NJ 08840

Home Remodeling Concepts                                 $53,568
4 Dale Drive
Fairfield, NJ 07004

Strober Building Supply Inc.                             $44,460
81 Kresson Road
Haddonfield, NJ 08033

Air Management Heating and                               $32,850
Air
30 Rachel Terrace
Piscataway, NJ 08854

Benchmark Inc.                                           $30,787
450 Oberlin Avenue South
Lakewood, NJ 08701

East Lake Interiors LLC                                  $29,419
215 Edgewood Avenue
West Berlin, NJ 08091

Bill Stroud Excavating Inc.                              $28,524
81 River Road
Flanders, NJ 07836

Quality Insulation, LLC                                  $28,519
13B Jules Lane
New Brunswick, NJ 08901

RWZ Stairs and Rails                                     $28,490
520 James Street
Lakewood, NJ 08701

Jillette Advertising Inc.                                $25,620
746 Highway 34
Matawan, NJ 07747

ACH Concrete Corp                                        $24,049
3 Manor Drive
Mount Holly, NJ 08060

Township of Mays Landing                                 $22,637
6101 13th Street, Suite 202
Mays Landing, NJ 08330

Century Kitchens, Inc.                                   $16,172
Route 309 & RR Crossing
Colmar, PA 18915

Varsity, Inc.                                            $14,053
1204 Main Street
Kingston, PA 18704

Wagner Electric Corp.                                    $14,031
449 Washington Road
Sayreville, NJ 08872

G. Horizons at Birch Hill, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Bayshore Regional Sewer                                 $228,021
Authority
100 Oak Street
Keyport, NJ 07735

Garzaniti, Maryann            Deposit                    $79,135
246 McBain Avenue
Staten Island, NY 10309

Heldon, John Jr. and          Deposit                    $77,303
Virginia D.
432 Hillside Avenue
Allendale, NJ 07401

Simon, Karen F. and Bruce J.  Deposit                    $72,969
8 Little Falls Way
Scotch Plains, NJ 07076

Rose, Richard and Barbara     Deposit                    $71,990
321 Mayfair Drive
Brooklyn, NY 11234

Kapelnikov, Polina            Deposit                    $65,883

File, Deborah                 Deposit                    $59,190
3 Allwood Road
East Brunswick, NJ 08816

Wilentz Goldman & Spitzer                                $57,279
99 Woodbridge Center Drive
Woodbridge, NJ 07095

Baum, Lila                    Deposit                    $51,882
1931 E. 27th Street
Brooklyn, NY 11229

Reedman, Derek and            Deposit                    $48,250
Linda Reedman

Goldberg, Alexander           Deposit                    $45,735
11 Amaganset Drive
Morganville, NJ 07751

Farag, Hala                   Deposit                    $45,228
4 Carlisle Court
East Brunswick, NJ 08816

Brodsky, Mikhail and Faina    Deposit                    $45,092
1583 82nd Street
Brooklyn, NY 11228

DeJohn, Joseph and Diane      Deposit                    $44,891
32 Lark Place
Old Bridge, NJ 08857

Clory, Nellie                 Deposit                    $44,593
160 Parkside Ave, 3M
Brooklyn, NY 11226

Barsoom, Naguiy               Deposit                    $44,528
54 Dutch Road
East Brunswick, NJ 08816

Parrella, Pasuelina and       Deposit                    $44,356
Rocco
152 Chesterfield Lane
Toms River, NJ 08757

Benz, Janet                   Deposit                    $42,735
2169 E. 70th Street
Brooklyn, NY 11234

Township of Old Bridge                                   $37,164
1 Old Bridge Plaza
Old Bridge, NJ 08857

Baten, Sam and Carol A.       Deposit                    $31,490
11 Jeremy Court
Lincoln Park, NJ 07035

H. Kara at Crine West, LLC's 20 Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
Contract Deposits                        $2,173,691
[Address not provided]

All County Aluminum Inc.                   $218,047
560 Cross Street
Lakewood, NJ 08701

Jocama Construction Corp                   $164,570
322 Spring Valley Road
Old Bridge, NJ 08857

Fenton Tile Company                        $124,696
PO Box 430
Windsor, NJ 08561

Strober Building Supply, Inc.              $104,436
81 Kresson Road
Haddonfield, NJ 08033

A-1 Bracket                                 $99,420
145 W. Philadelphia Avenue
Morrisville, PA 19067

Shoreline Plumbing & Heating                $97,359
447 Stage Road
Tuckerton, NJ 08087

Home Remodeling Concepts                    $95,278
4 Dale Drive
Fairfield, NJ 07004

TJS Floorcovering, Inc.                     $94,962
824 B Eastgate Drive
Mount Laurel, NJ 08054

Strober Building Supply Truss               $89,608
81 Kresson Road
Haddonfield, NJ 08033

Michael J. Wright                           $86,739
Construction Co., Inc.
16 Madison Avenue

Township of Marlboro                        $84,242
1979 Township Drive
Marlboro, NJ 07746

Marlboro Lawn Inc.                          $63,892
P.O. Box 122
Marlboro, NJ 07746

Menser's Heating and Air, Inc.              $52,253
800 Park Avenue
Lakewood, NJ 08701

Stavola                                     $49,983
175 Drift Road
Eatontown, NJ 07724

Vintage                                     $48,880
811 Sixteenth Avenue
Belmar, NJ 07719

Benchmark Inc.                              $44,453
450 Oberlin Avenue South
Lakewood, NJ 08701

RWZ Inc. Stairs & Rails                     $41,277
520 James Street
Lakewood, NJ 08701

Lieb, Gene                                  $39,345
439 B Route 34
Matawan, NJ 07747

Quality Insulation, LLC                     $33,958
13B Jules Lane
New Brunswick, NJ 08901

I. Sterling Acres at Monroe, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Contract Deposits             To be supplied            $612,742
[Address not provided]

East Lake Interiors LLC                                  $58,790
215 Edgewood Avenue
West Berlin, NJ 08091

East Lake Interiors LLC                                  $58,790
215 Edgewood Avenue
West Berlin, NJ 08091

Duffy, Dolce, McManus                                    $49,450
634 Lost Pine Way
Absecon, NJ 08205

Strober Building Supply Inc.                             $45,345
81 Kresson Road
Haddonfield, NJ 08033

ACH Concrete Corp                                        $36,057
3 Manor Drive
Mount Holly, NJ 08060

Dubell Lumber Co.                                        $31,412
P.O. Box 1449
Medford, NJ 08055

DSJ Construction                                         $30,776
1414 Route 130 North
Burlington, NJ 08016

A-1 Bracket                                              $26,858
145 W. Philadelphia Avenue
Morrisville, PA 19067

Woodhaven Lumber & Millwork                              $26,707
P.O. Box 870
Lakewood, NJ 08701

Michael J. Wright                                        $25,818
Construction Co., Inc.
16 Madison Avenue
Toms River, NJ 08753

Concord Truss                                            $23,023
432 South Evergreen Avenue
Woodbury Heights, NJ 08097

Shoreline Plumbing & Heating                             $22,601
447 Stage Road
Tuckerton, NJ 08087

RWZ Inc. Stairs & Rails                                  $19,565
520 James Street
Lakewood, NJ 08701

Benchmark Inc.                                           $16,658
450 Oberlin Avenue South
Lakewood, NJ 08701

ADE, Inc.                                                $15,317
P.O. Box 538
Lanoka Harbor, NJ 08734

EL Pierson Contracting &                                 $13,556
Truck
14 Reckendorfer Avenue
Elmer, NJ 08318

Strober Building Supply                                  $13,312
Truss
81 Kresson Road
Haddonfield, NJ 08033

Jillette Advertising Inc.                                $10,009
746 Highway 34
Matawan, NJ 07747

Liberty Overhead Inc.                                     $5,619
718 Old Shore Road
Forked River, NJ 08731

J. Kara at Mt. Arlington I, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
R&R Construction Co., Inc.                              $732,100
105-B Parker Road
Chester, NJ 07930

Concrete Systems                                        $405,387
45 Lupine Way
Stirling, NJ 07980

Schindler Elevator                                      $310,526
Corporation
P.O. Box 70433
Chicago, IL 60673

Blue Ridge Drywall                                      $229,390
P.O. Box 189
Manville, NJ 08835

PK&P Contracting, Inc.                                  $194,715
5 Tuscan Drive East
Freehold, NJ 07728

Technological Building                                  $168,235
Structures
Phillipsburg, NJ 08865

Prestige Plumbing, Inc.                                 $164,065
65 A. Park Avenue
Randolph, NJ 07869

Paint America Contracting                                $93,114
100 Bassett Highway
Dover, NJ 07801

Strober Building Supply Inc.                             $80,733
81 Kresson Road
Haddonfield, NJ 08033

Flemington Dept. Store                                   $77,849
151 Route 31
Flemington, NJ 08822

Air Management Heating and                               $75,637
Air
30 Rachel Terrace
Piscataway, NJ 08854

Cuntis Inc.                                              $63,375
20 Veterans Drive
South River, NJ 08882

Samuel Stothoff Co., Inc.                                $54,594
P.O. Box 306
Flemington, NJ 08822

Gilmore, Patricia             Deposit                    $52,527
56 Warren Street
Morristown, NJ 07961

French and Parrello Assoc.                               $49,558
1800 Route 34
Belmar, NJ 07719

Varsity, Inc.                                            $49,162
1204 Main Street
Kingston, PA 18704

Aqua-Mist Irrigation of NJ                               $46,493
28 James Street
South Hackensack, NJ 07606

Leopard Framing Corp.                                    $46,207
P.O. Box 146
Nutley, NJ 07110

Benchmark Inc.                                           $42,745
450 Oberlin Avenue South
Lakewood, NJ 08701

Wagner Electric Corp.                                    $42,620
449 Washington Road
Sayreville, NJ 08872

K. Kara at Mt. Arlington II, LLC's 18 Largest Unsecured Creditors:

   Entity                              Claim Amount
   ------                              ------------
Township of Mt. Arlington                    $5,903
419 Howard Blvd
Mount Arlington, NJ 07856

Sunrise Concrete Company                     $5,300
P.O. Box 435
Rushland, PA 18956

Marlboro Lawn Inc.                           $5,130
P.O. Box 122
Marlboro, NJ 07746

Willis Construction Services                 $4,714
25B Vreeland Road
Florham Park, NJ 07932

Manzo-Maroba Construction                    $4,300
Beacon Hill Place
Morganville, NJ 07751

The Esposito Group LLC                       $3,172
8 Chatham Court
Matawan, NJ 07747

Scheer's Incorporated                        $2,291
601 Oakmont Street, Suite 400
Westmont, IL 60559

First Choice Construction                    $1,900
Eatontown, NJ 07724

East Coast Site Work                         $1,790
6 Dickens Court
Howell, NJ 07731

National Waterproofing Inc.                    $825
P.O. Box 129
Berlin, NJ 08009

Straight Edge Striping                         $750
18 Rue Cezanne
Somerset, NJ 08873

A-1 Bracket                                    $700
145 W. Philadelphia Avenue
Morrisville, PA 19067

All Seasons Maintenance                        $680
6 Dickens Court
Howell, NJ 07731

John Peterman Trucking                         $280
26 Nicholas Drive
Old Bridge, NJ 08857

Bailey Square Janitorial Inc.                  $275
16 South Street
Freehold, NJ 07728

Storm Master Co., Inc.                         $175
P.O. Box 308
East Brunswick, NJ 08816

All County Aluminum Inc.                       $140
560 Cross Street
Lakewood, NJ 08701

Bill Stroud Excavating                      Unknown
81 River Road
Flanders, NJ 07836

L. Kara at Park Ridge Estates, LLC's 15 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Matusek, Scott and Colleen    Deposit                   $139,612
203 Snipe Road
Lanoka Harbor, NJ 08734

Palmer, Olufemi and           Deposit                   $123,500
Elizabeth
717 Palmer Avenue
Toms River, NJ 08755

Bialecki, Peter and Sharon    Deposit                   $115,942
204 Neptune Drive
Manahawkin, NJ 08050

NJ American Water Co.                                   $109,479
131 Woodrest Road
PO Box 5079
Cherry Hill, NJ 08034

Mindas, Mark and Rhiannon     Deposit                    $71,037
125 South Capstan Drive
Forked River, NJ 08731

Shoreline Grading, Inc.                                  $35,250
123 Bartlett Avenue
West Creek, NJ 08092

Art Associates Design Group                              $16,388
Matawan, NJ 07747

Township of Stafford                                     $14,770
260 East Bay Avenue
Manahawkin, NJ 08050

Environmental Technologies                               $10,255
Groups Inc.
531 Route 32
Highland Mills, NY 10930

Vintage                                                   $2,400
811 Sixteenth Avenue
Belmar, NJ 07719

Thomas J. Brennan                                         $2,113
Architects
4011 W. Plano Parkway
Plano, TX 75093

East Coast Site Work                                      $1,851
6 Dickens Court
Howell, NJ 07731

Geo-Technology Associates                                 $1,250
3445-A Box Hill Corp Center
Drive
Abingdon, MD 21009

Window Alternatives                                         $710
Att: Kathy Hamilton
Jackson, NJ 08527

State of New Jersey                                         $250
P.O. Box 037
Trenton, NJ 08625

M. Kara Homes, Inc.'s 20 Largest Unsecured Creditors:

   Entity                                Claim Amount
   -------                               ------------
A-1 Bracket                                $1,856,462
145 W. Philadelphia Avenue
Morrisville, PA 19067

Strober Building Supply, Inc.              $1,541,663
81 Kresson Road
Haddonfield, NJ 08033

Sunrise Concrete Company, Inc.             $1,257,344
P.O. Box 435
Rushland, PA 18956

RWZ Inc. Stairs & Rails                      $890,655
520 James Street
Lakewood, NJ 08701

Benchmark Inc.                               $876,586
450 Oberlin Avenue South
Lakewood, NJ 08701

Michael J. Wright                            $780,310
Construction Co., Inc.
16 Madison Avenue
Toms River, NJ 08753

R&R Construction Co., Inc.                   $777,950
105-B Parker Road
Chester, NJ 07930

Home Remodeling Concepts                     $703,074
4 Dale Drive
Fairfield, NJ 07004

Manzo-Maroba Construction                    $686,101
Beacon Hill Place
Morganville, NJ 07751

Woodhaven Lumber & Millwork                  $634,569
P.O. Box 870
Lakewood, NJ 08701

SJP Contractors                              $634,056
7 Industrial Drive
Keyport, NJ 07735

C&R Plumbing & Heating                       $604,342
822 Route 9
Lanoka Harbor, NJ 08734

All County Aluminum Inc.                     $575,397
560 Cross Street
Lakewood, NJ 08701

East Lake Interiors LLC                      $554,873
215 Edgewood Avenue
West Berlin, NJ 08091

Strober Building Supply, Inc.                $524,036
81 Kresson Road
Haddonfield, NJ 08033

Concrete Systems                             $519,478
45 Lupine Way
Stirling, NJ 07980

Wagner Electric Corp.                        $501,001
449 Washington Road
Sayreville, NJ 08872

Leopard Framing Corp.                        $499,898
P.O. Box 146
Nutley, NJ 07110

Century Kitchens, Inc.                       $458,404
Route 309 & RR Crossing
Colmar, PA 18915

Shoreline Plumbing & Heating                 $444,103
447 Stage Road
Tuckerton, NJ 08087

N. Kara at Navasink, LLC's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Borreo, Jason                 Deposit                   $119,040
[Address not included]

Cerchio, Dominick             Deposit                   $114,335
[Address not included]

Covas, Al                     Deposit                    $75,490
10 Nolan Court
Atlantic Highlands, NJ 07716

Lamb                          Deposit                    $75,490
521 Harding Road
Fair Haven, NJ 07704

Spaltro, Nick                 Deposit                    $69,990
34 Maria Court
Holmdel, NJ 07733

Morrison, Tom and Allison     Deposit                    $54,900
419 Adams Street #2B
Hoboken, NJ 07030

Township of Middletown                                   $41,604
1 Kings Highway
Middletown, NJ 07748

Live Oak Landscaping                                     $40,519
Contractors

Reres, Robert                 Deposit                    $36,148
1921 J Greve Avenue
Spring Lake, NJ 07762

Salgado, Paul                 Deposit                    $35,751
248 Crann Street
Hillside, NJ 07205

Grant, Howard and Jane        Deposit                    $30,495
160 Ocean Avenue
Atlantic Highlands, NJ 07716

Seide, Harold and Susan       Deposit                    $30,000
72 Bellevue Avenue
Rumson, NJ 07760

Freeman, Douglas              Deposit                    $29,990
58 Preston Street
Edison, NJ 08817

Marlboro Lawn Inc.                                       $19,495
P.O. Box 122
Marlboro, NJ 07746

Sunrise Concrete Company                                 $10,197
P.O. Box 435
Rushland, PA 18956

Caruso Excavating Co.                                     $8,808
P.O. Box 2043
Asbury Park, NJ 07712

Michael J. Wright                                         $7,825
Construction Co., Inc.
16 Madison Avenue
Toms River, NJ 08753

April Showers Sprinklers                                  $7,040
2 Lakeview Avenue
Piscataway, NJ 08854

Blue Line Drywall &                                       $6,550
Insulation
500 Highway 33
Englishtown, NJ 07726

John S. Truhan Consulting                                 $5,997
Engineers
P.O. Box K
Manasquan, NJ 08736

O. Kara at Lacey, LLC's 19 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
New Jersey Natural Gas                                  $196,921
1415 Wyckoff Road
Belmar, NJ 07719

Mathis Construction                                     $159,142
1510 Route 539
Tuckerton, NJ 08087

Capra, Robert and Annette     Deposit                    $87,890
8 Carolyn Road
Belleville, NJ 07109

Carson, Jill                  Deposit                    $62,610
2802 Jockey Hollow Drive
Toms River, NJ 08755

Landscape Maintenance                                    $45,000
Services
119 Wall Street
Princeton, NJ 08540

Sunrise Concrete Company                                 $29,819
P.O. Box 435
Rushland, PA 18956

Spagnola, John and DaSilva,   Deposit                    $25,252
Cidalia
194 Corbin Court
Lakewood, NJ 08701

Michael J. Wright                                        $20,779
Construction Co., Inc.
16 Madison Avenue
Toms River, NJ 08753

Property Dev. Services II,                               $13,002
Inc.
700 Hooper Avenue
Toms River, NJ 08753

Strober Building Supply,                                 $12,754
Inc.
81 Kresson Road
Haddonfield, NJ 08033

Atlantic City Electric Co.                               $12,738
P.O. Box 4875
Trenton, NJ 08650

Androcy, Evan and Smith,      Deposit                    $11,000
Kim
2205 Sweetwood Drive
Forked River, NJ

Atlantic Fence Co.                                        $8,685
P.O. Box 623
Tuckerton, NJ 08087

Township of Lacey                                         $4,826
818 West Lacey Road
Forked River, NJ 08731

Kline Construction                                        $2,145
240 Waveland Avenue
Absecon, NJ 08201

Woodhaven Lumber &                                        $1,786
Millwork
P.O. Box 870
Lakewood, NJ 08701

Advanced Site and Utility                                 $1,750
Contr.
1201 Wilkinson Drive
Toms River, NJ 08755

East Coast Site Work                                      $1,574
6 Dickens Court
Howell, NJ 07731

Johnny on the Spot                                          $175
3168 Bordentown Road
Old Bridge, NJ 08857

P. The Landings at Manahawkin, LLC's 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Kaye, Leonard and Margaretia  Deposit                    $78,863
72 Middlehill Road
Colonia, NJ 07067

Township of Stafford                                     $75,077
260 East Bay Avenue
Manahawkin, NJ 08050

Scher, Marc and Michele       Deposit                    $68,497
24 Pawnee Raod
East Brunswick, NJ 08816

Pacelli, Anthony              Deposit                    $67,343
224 Terrace Lake Drive
Butler, NJ 07405

Thoman, Kenneth and Suzanne   Deposit                    $63,123
14 Lowell Court
Brick, NJ 08724

Nelligar, Steven and Denise   Deposit                    $57,844
3800 Waldo Avenue
Bronx, NY 10463

McGann, Brian                 Deposit                    $57,744
2 Jones St. Apt. 5
Jersey City, NJ 07306

Bagoff, Robert DMD            Deposit                    $57,730
77 Clarken Drive
West Orange, NJ 07052

Rebeck, Richard and Arlene    Deposit                    $56,771
366 Alden Way
North Brunswick, NJ 08902

Wetzel, Lance and Susan       Deposit                    $55,519
31 Southwycke Lane
Warwick, NY 10990

LaMastro, Eugene              Deposit                    $55,344
2 Mountainside Drive
Randolph, NJ 078692217

Madia, June and Frank         Deposit                    $55,197
11 Windsor Road
Morris Plains, NJ 07950

Hymanson, Helen               Deposit                    $54,967
185 Prospect Avenue, Apt.
12G
Hackensack, NJ 07601

Gattie, Marie and Frantz,     Deposit                    $54,748
Jennifer
62 Ludlow Road
Parsippany, NJ 07054

Poultney, Robert and Carolyn  Deposit                    $52,789
3 Red Hill Road
Warren, NJ 07059

Freeman, Kevin                Deposit                    $52,072
23 Wimblet Court
Edison, NJ 08817

Thomas/Pejkovic, Michael      Deposit                    $51,188
2253 Ridge Street
Yorktown Heights, NY 10598

Weiss, Michael and David      Deposit                    $51,142
22 Shady Stream Road
Barnegat, NJ 08005

Forcier, Vickie               Deposit                    $50,471
147 Hankins Road
Hightstown, NJ 08520

Lucarello, Arlene and Pat     Deposit                    $49,818
332 Moonlight Drive
Piscataway, NJ 08854

Q. Kara at the Tradewinds, LLC's 11 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Hirsch, Kevin and Linda       Deposit                   $210,000
700 Monteray Boulevard NE
Saint Petersburg, FL 33704

Township of Sea Bright                                   $10,539
1167 Ocean Avenue
Rumson, NJ 07760

Sunrise Concrete Company                                  $2,600
P.O. Box 435
Rushland, PA 18956

Lynch Guilano & Associates                                $1,625
Terrace Professional Bldg.
Brick, NJ 08723

Michael J. Wright                                         $1,086
Construction Co., Inc.
16 Madison Avenue
Toms River, NJ 08753

GE Cap Modular Space                                        $445
530 East Swedesford
Wayne, PA 19087

Bailey Square Janitorial                                    $350
Inc.
16 South Street
Freehold, NJ 07728

Vintage                                                     $339
811 Sixteenth Avenue
Belmar, NJ 07719

BP Associates                                               $334
52A Highway 79
Marlboro, NJ 07746

Willis Construction Services                                $300
25B Vreeland Road
Florham Park, NJ 07932

Tradewinds Homeowners                                    Unknown
Association
Attn: Midlantic Property
Management
315 Raritan Avenue
Highland Park, NJ 08904

R. Kara at Buckley Estates, LLC's 10 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Goyal, Janak and Manju        Deposit                   $205,671
8 Disbrow Road
Matawan, NJ 07747

Nagarsheth, Harish and        Deposit                   $187,035
Veena
10 Plowshare Court
Marlboro, NJ 07746

Bhatia, Rajiv and Amita       Deposit                   $150,665
26 Buttonwood Drive
Marlboro, NJ 07746

Martin, Harold J. and         Deposit                   $127,390
Premise D.
42 Witherspoon Way
Marlboro, NJ 07746

Ahmad, Aziz                   Deposit                   $124,993
35 Matthew Place
Staten Island, NY 10305

Township of Marlboro                                     $22,605
1979 Township Drive
Marlboro, NJ 07746

Hanson Engineering Inc.                                   $1,250
7 Doig Road
Wayne, NJ 07470

Imagistics                                                  $260
7555 E. Hampden Avenue
Denver, CO 80231

Wanaque Water Dept.                                          $32
P.O. Box 47
Wanaque, NJ 07465

Culligan                                                     $14
305 Clearview Road
Edison, NJ 08837

S. Kara at Dayna Court, LLC's 14 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Fried, Jerold and Tammy       Deposit                   $134,382
28 Pacific Avenue
Bayville, NJ 08721

Vu, Tram Anh                  Deposit                   $110,000
718 Spruce Hill Drive
Toms River, NJ 08753

Leopoidevin, Jeff and Losito  Deposit                   $91,090
Frank
1 Shorin Way
Manchester Township, NJ 08759

Mazzei, Rocco                 Deposit                   $37,500
115 Mesa Verde Lane
Howell, NJ

Verizon                                                 $22,800
P.O. Box 4833
Trenton, NJ 08650

ManzoMaroba Construction                                $18,000
Beacon Hill Place
Morganville, NJ 07751

Jillette Advertising Inc.                               $15,899
746 Highway 34
Matawan, NJ 07747

Control Layouts, Inc.                                    $6,099
271 Cleveland Avenue
Highland Park, NJ 08904

Menlo Engineering Assoc Inc.                             $4,489
261 Cleveland Avenue
Highland Park, NJ 08904

Meridan Engineering Group                                $4,487
Inc.
33 Wood Avenue South
Iselin, NJ 08830

Township of Dover                                        $4,020
P.O. Box 48044
Newark, NJ 07101

Art Associates Design Group                                $424
Matawan, NJ 07747

Difrancesco, Bateman, Coley                                $387
15 Mountain Blvd
Warren, NJ 07059

Magrann Associates Corp.                                   $135
240 West Route 38
Moorestown, NJ 08057

T. Country Club Estates by Kara, LLC's 18 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Wolfrom, Jeffrey and Lynn     Deposit                   $142,546
319 Aster Circle
Kennett Square, PA 19348

Caufield, Richard and Judith  Deposit                   $101,225
197 Maple Street
Roselle Park, NJ 07204

Township of Little Egg                                   $18,923
Harbor
665 Radio Road
Tuckerton, NJ 08087

Guardian Protection Services                             $13,705
204 Diplomat Drive
Philadelphia, PA 19113

Township of Little Egg                                   $11,118
Harbor
665 Radio Road
Tuckerton, NJ 08087

Vintage                                                   $3,369
811 Sixteenth Avenue
Belmar, NJ 07719

All County Aluminum                                       $1,350
560 Cross Street
Lakewood, NJ 08701

Brennan Contracting                                         $930
349 Appletree Drive
Levittown, PA 19055

Sunrise Concrete Company                                    $560
P.O. Box 435
Rushland, PA 18956

Willis Construction Services                                $554
25 B Vreeland Road
Florham Park, NJ 07932

Zahn Transportation                                         $552
P.O. Box 158
Manchester Township, NJ 08759

Adams Rehmann & Heggan                                      $540
850 South White Horse Pike
Hammonton, NJ 08037

Greenscape Landscaping                                      $350
727 Cornwallis Drive
Mount Laurel, NJ 08054

Top Coat Paving Inc.                                        $340
P.O. Box 7
Lanoka Harbor, NJ 08734

Bailey Square Janitorial Inc.                               $340
16 South Street
Freehold, NJ 07728

Michael J. Wright                                           $310
Construction Co.
16 Madison Avenue
Toms River, NJ 08753

Owen, Little & Associates                                   $175
443 Atlantic City Blvd.
Beachwood, NJ 08722

Landscape Maintenance                                       $128
Services
119 Main Street
Princeton, NJ 08540

U. Horizons at Woodlake Greens, LLC's 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Township of Lakewood                                     $99,651
231 Third Street
Lakewood, NJ 08701

Mueller, Constance            Deposit                    $86,043
608 Oceanview Road
Brielle, NJ 08730

Smallwood, John and Mary      Deposit                    $75,285
Ann
13326 Ocean Avenue
Rumson, NJ 07760

Dennery, John and Elsa        Deposit                    $73,212
10 Wood Drive
Morris Plains, NJ 07950

HindsSamuels, Patricia        Deposit                    $67,797
172-32 133rd Avenue
Apt. 10G
Jamaica, NY 11434

Straniero, Salvatore J. and   Deposit                    $65,523
Amelia
397 Middle Road
Hazlet, NJ 07730

Leonard, John M and Mary C.   Deposit                    $61,089
148 Dorset Drive
Clark, NJ 07066

Kalamaras, Rosemary and       Deposit                    $59,402
Louis
5 Dryden Road
Brick, NJ 08724

Balducci, Carol               Deposit                    $55,535
15 Bunker Hill Drive
Old Bridge, NJ 08857

Rienzo, Elizabeth A.          Deposit                    $53,467
144 N. Hampton Drive
Leonardo, NJ 07737

Giannetti, Patrick A. and     Deposit                    $52,540
Gayle T.
4 Ellison Avenue
Edison, NJ 08820

Yetto, Marianne               Deposit                    $49,460
1420 Bay Ridge Parkway
Brooklyn, NY 11228

DeGrusso, Ross and Jean       Deposit                    $49,200
360 Colon Avenue
Staten Island, NY 10308

Albietz, Paul J. and          Deposit                    $49,178
Elaine M.
2231 Franklin Drive
Belmar, NJ 07719

Greco, Paolino and Elena      Deposit                    $47,038
1805 Meadow Road
Belmar, NJ 07719

Hensler, George and Hilma     Deposit                    $35,245
26 Lenox Avenue
Cranford, NJ 07016

Craggen, Janet                Deposit                    $32,407
35 Lafayette Drive
Hazlet, NJ 07730

Hira, Gurvir and Daljeet      Deposit                    $31,976
21 Surrey Drive
Old Bridge, NJ 08857

Bercovicz, Israel and Sarah   Deposit                    $21,282
10 Lambert Johnson Drive
Asbury Park, NJ 07712

Lindstrom, Diessner &                                     $1,216
Carr PC
136 Drum Point Road, Suite 6
Brick, NJ 08723

V. Estates at Galloway Woods, LLC's 20 Largest Unsecured
Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Strober Building Supply                                 $103,382
Truss
81 Kresson Road
Haddonfield, NJ 08033

Russo, Robert and Kelly       Deposit                    $96,657
10 Seminde Street
Monroe Township, NJ 08831

Dechavez, Maria               Deposit                    $80,388
94 Tennyson Street
Carteret, NJ 07008

Chandler, Stephen and Jen     Deposit                    $39,528
1079 Bally Bunion Drive
Egg Harbor City, NJ 08215

Menser's Heating & Air                                   $33,593
800 Park Avenue
Lakewood, NJ 08701

Alfano, Phyllis and Durden,   Deposit                    $30,347
Gerald
2348 Linwood Avenue2P
Fort Lee, NJ 07024

RWZ Stairs and Rails                                     $24,580
520 James Street
Lakewood, NJ 08701

Property Dev. Services, Inc.                             $14,192
700 Hooper Avenue
Toms River, NJ 08753

Sunrise Concrete Company                                 $13,012
P.O. Box 435
Rushland, PA 18956

Waters and Bugbee Inc.                                   $10,091
75 South Gold Drive
Trenton, NJ 08691

Strober Building Supply Inc.                              $8,300
81 Kresson Road
Haddonfield, NJ 08033

East Coast Site Work                                      $8,084
6 Dickens Court
Howell, NJ 07731

Shoreline Plumbing &                                      $6,259
Heating
447 Stage Road
Tuckerton, NJ 08087

Township of Galloway                                      $5,187
300 East Jimmie Leeds Road
Absecon, NJ 08205

Michael J. Wright                                         $4,795
Construction Co.
16 Madison Avenue
Toms River, NJ 08753

Johnny on the Spot Inc.                                   $1,575
3168 Bordentown Road
Old Bridge, NJ 08857

Builders First Source                                     $1,464
20 South Middlesex Avenue
Monroe Township, NJ 08831

Advanced Site and Utility                                 $1,400
Contr.
1201 Wilkinson Drive
Toms River, NJ 08755

Manzo-Maroba Construction                                 $1,251
Beacon Hill Place
Morganville, NJ 07751

Johannessen & Leone                                         $749
Associates
Lansdale, PA 19446

W. The Shores at Little Egg Harbor, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Landscape Maintenance Services                 $18,923
491 Amwell Road
Building 1, Suite 100
Hillsborough, NJ 08844

Top Coat Paving, Inc.                           $3,369
P.O. Box 7
Lanoka Harbor, NJ 08734

Bailey Square Janitorial Inc.                     $930
16 South Street
P.O. Box 767
Freehold, NJ 07728

Advanced Site & Utility                           $900

Keystone/Maxx                                     $580

Strober Building Supply, Inc.                     $560

Vintage                                           $554

Zahn Transport, Inc.                              $552

Greenscape Landscaping                            $450

Atlantic City Electric Co.                        $422

Brennan Contracting                               $350

Sunrise Concrete Company                          $340

Adams, Rehmann & Heggan                           $340

All County Aluminum, Inc.                         $340

Willis Construction Services                      $310

Township of Little Egg Harbor                     $175

Michael J. Wright                                 $135

Guardian Protective Services                      $128

Robert Boehm                                   Unknown

Evans, Sean and Levitt, Dorian                 Unknown

X. Kara of Monmouth, LLC's 20 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Maser Consulting                                $5,000
One River Centre, Building 2
Red Bank, NJ 07701

Willis Construction Services                    $4,369
25B Vreeland Road
Florham Park, NJ 07932

WJE                                             $2,673
P.O. Box 71801
Chicago, IL 60694

Almost Home, Inc.                               $1,350

Sunrise Concrete Company                        $1,321

Bailey Square Janitorial Inc.                     $900

Cerullo Fire Protection                           $830

Blue Ridge Drywall                                $450

Mobility Elevator & Lift Co.                      $315

Home Depot/GECF                                   $300

CME Associates                                    $288

Kirkpatrick and Lockhart                          $276

Jersey Central Power and Light                    $214

New Jersey Natural Gas                            $168

Johnny on the Spot                                $101

New Jersey American Water                          $17

ACH Concrete Corp.                             Unknown

Mary Anis                                      Unknown

Aspen Woods Homeowner's Association, Inc.      Unknown

Barnett, Sanford and Annette                   Unknown

Y. Bridgepointe at Harbor Heights, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
ICS LLC                                        $97,968
P.O. Box 363
Momnouth Junciton, NJ 08852

Township of Old Bridge                         $39,000
One Old Bridge Plaza
Old Bridge, NJ 08857

Robert McGowan                                 $25,083
P.O. Box 8
South Amboy, NJ 08879

Michael J. Wright                              $17,932

The Esposito Group LLC                         $15,000

Willis Construction Services                   $14,104

Manzo-Maroba Construction                       $3,101

J. Manzo Recycling Co.                          $2,535

Live Oak Landscaping Contractors                $1,935

Joe Mollis                                      $1,546

Agim Kargjozi                                   $1,500

Bill Stroud Excavating                          $1,500

Bailey Square Janitorial Inc.                   $1,070

Residential Warranty Corp.                        $498

Home Depot/GECF                                    $40

Mike and Joan Addeo                            Unknown

Mohammed Ahmed                                 Unknown

Herman and Teresa Alstong                      Unknown

Zamen Au/lau                                   Unknown

Boateng                                        Unknown

Z. Kara of Middlesex, LLC's 20 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Marlboro Lawn Inc.                             $40,130
146 Route 79N
P.O. Box 122
Marlboro, NJ 07746

Sunrise Concrete Company                        $5,300
P.O. Box 435
911 Millcreek Road
Rushland, PA 18956

Willis Construction Services                    $4,714
25B Vreeland Road
Florham Park, NJ 07932

Manzo-Maroba Construction                       $4,300

The Esposito Group LLC                          $3,172

Scheer's Inc.                                   $2,291

First Choice Construction                       $1,900

East Coast Site Work                            $1,790

National Waterproofing Inc.                       $825

Straight Edge Striping                            $750

A-1 Bracket                                       $700

All Seasons Maintenance                           $680

Jersey Central Power and Light                    $314

John Peterman Trucking                            $280

Bailey Square Janitorial Inc.                     $275

Storm Master Co., Inc.                            $175

All County Aluminum Inc.                          $140

Home Depot/GECF                                   $104

Township of Monroe                                 $25

Rocky and Antoinette Barletta                  Unknown

AA. Kara at Emerald Hill, LLC's 20 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Tile It, Inc.                                  $68,084
101 Park Avenue
Manalapan, NJ 07726

RWZ Inc. Stairs & Rails                        $47,102
520 James Street
Lakewood, NJ 08701

First Choice Construction                      $39,675
560 Tinton Avenue
Eatontown, NJ 07724

The Esposito Group LLC                         $38,671

Shoreline Plumbing & Heating                   $36,133

A-1 Bracket                                    $34,529

Benchmark, Inc.                                $34,270

Integrated Home Technologies                   $29,278

Ferguson Enterprises                           $26,930

Century Kitchens, Inc.                         $24,897

BP Associates                                  $20,586

Home Remodeling Concepts                       $19,881

Innovative Heating and Cooling                 $19,810

Township of Marlboro                           $19,207

ACH Concrete Corp.                             $12,823

Construction Pros Corp.                        $12,776

Strober Building Supply, Inc.                  $11,064

Quality Insulation, LLC                         $7,586

WB Drilling, Inc.                               $6,697

Jersey Central Power and Light                  $6,445

AB. Kara at Evergreen Estates, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
A-1 Bracket                                    $44,904
145 West Philadelphia Avenue
Morrisville, PA 19067

Owen Little & Associates Inc.                  $15,387
443 Atlantic City Boulevard
Beachwood, NJ 08722-4003

Vintage                                        $10,260
811 Sixteenth Avenue
Belmar, NJ 07719

Sunrise Concrete Company                        $5,950

Lou's Electric                                  $5,911

Property Dev. Services II, Inc.                 $5,049

Landscape Maintenance Services                  $3,975

Scheer's Inc.                                   $3,000

RWZ Inc. Stairs & Rails                         $2,549

Straight Edge Striping                          $2,485

ADE, Inc.                                       $2,228

Advanced Site & Utility                         $2,100

Browning Landscape                              $1,860

Strober Building Supply, Inc.                   $1,796

Century Kitchens, Inc.                          $1,728

Michael J. Wright                               $1,510

AII Concepts                                    $1,161

Bailey Square Janitorial Inc.                     $946

All County Aluminum Inc.                          $810

RC Shea & Associates                              $793

AC. Kara at North Haledon, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Borough of North Haledon                       $42,539
Municipal Building
103 Overlook Avenue
Haledon, NJ 07508

Bill Stroud Excavating                         $13,282
81 River Road
Flanders, NJ 07836

Home Remodeling Concepts                        $6,500
4 Dale Drive
Fairfield, NJ 07004

JV Excavators & Contractors, LLC                $5,500

Vintage                                         $5,175

RWZ Inc. Stairs & Rails                         $4,762

G.E. Cap Modular Space                          $3,389

EWG                                             $1,634

Aldo Carpets, Inc.                              $1,585

A-1 Bracket                                       $900

Obar Systems, Inc.                                $500

Grinnell Recycling                                $325

Diamond Finish Restoration                        $254

Home Depot/GECF                                   $233

Guardian Air Care Inc.                            $225

K&M Contracting Inc.                              $212

Amber Plumbing & Heating                          $160

Weissman Engr. Co., P.C.                          $130

Hecht Trailers Inc.                                $95

Wagner Electric Corp.                              $90

AD. Kara at Island Breeze, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Najarian Associates                             $4,300
1 Industrial Way West
Eatontown, NJ 07724

Home Safety Products                            $3,621
315 Raritan Avenue
Highland Park, NJ 08904

C&R Plumbing & Heating                          $3,330
822 Route 9
Lanoka Harbor, NJ 08734-1707

Landscape Maintenance Services                  $3,000

Runyon                                          $2,544

Aquatic Services                                $2,452

Sunrise Concrete Company                        $2,238

Bell Concrete                                   $1,862

Builders First Source                           $1,133

Atlantic City Electric Co.                        $929

Art Associates Design Group                       $920

Vintage                                           $594

R&T Contractors                                   $565

Jersey Shore Seamless Gutters                     $525

Blue Ribbon Roofing and Siding                    $355

Woodhaven Lumber & Millwork                       $290

Verizon                                           $210

Bailey Square Janitorial Inc.                     $190

RWZ Inc. Stairs & Rails                           $175

Reynolds Painting Group LLC                       $150

AE. Kara at Island Crest, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Robcon Builders                                 $6,700
145 West Philadelphia Avenue
Morrisville, PA 19067

Mitchell Hardware                               $2,696
235 Delsea Drive
Sewell, NJ 08080

Moon Site Management                              $964
1955 Quarry Road
Morrisville, PA 19067

Home Depot/GECF                                   $786

Blue Ribbon Roofing and Siding                    $550

ADE, Inc.                                         $425

Bailey Square Janitorial Inc.                     $420

Marturano Recreation Company                      $301

Willis Construction Services                      $264

Wagner Electric Corp.                             $225

Woodhaven Lumber & Millwork                       $126

Najarian Associates                               $100

Verizon                                            $34

Mountain Millwork Inc.                             $18

Stafford Township                                   $0

Di and Voight, Quido Bartola                   Unknown

Ken and Ellen Bernabe                          Unknown

Dennis Carollo                                 Unknown

Cochran                                        Unknown

Frank Crowley                                  Unknown

AF. Kara at Island Gate, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
RC Shea & Associates                           $14,324
244 Main Street
Toms River, NJ 08753

A-1 Bracket                                     $7,500
145 West Philadelphia Avenue
Morrisville, PA 19067

Bailey Square Janitorial Inc.                   $7,095
16 South Street
P.O. Box 767
Freehold, NJ 07728

Art Associates Design Group                     $6,519

EWG                                             $3,496

Najarian Associates                             $3,350

Moon Site Management                            $3,244

Sunrise Concrete Company                        $1,633

Willis Construction Services                    $1,181

Atlantic City Electric Co.                      $1,067

MGS Corp.                                         $988

M&Z Engineering                                   $695

Verizon                                           $678

East Coast Site Work                              $636

Michael J. Wright                                 $451

RWZ Inc. Stairs & Rails                           $429

Vintage                                           $339

Office Max                                        $170

Dreifuss-Prebilt, Inc.                            $145

Blue Ribbon Roofing and Siding                    $145

AG. Island Woods Estates by Kara Homes, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
RC Shea & Associates                           $14,256
244 Main Street
Toms River, NJ 08753

Willis Construction Services                   $12,709
25B Vreeland Road
Florham Park, NJ 07932

Gene Lieb                                      $12,560
439 B Route 34
Matawan, NJ 07747

Berry, Sahradnik, Riordan & Benson P.C.         $8,289

Sunrise Concrete Company                        $5,983

Najarian Associates                             $5,320

All Concepts                                    $3,735

Atlantic City Electric Co.                      $3,541

Property Development Services II, Inc.          $2,850

Century Kitchens, Inc.                          $2,241

Straight Edge Striping                          $2,150

Liberty Overhead Inc.                             $848

Monmouth Carpet & Upholstery                      $620

Lou's Electric                                    $620

Imagistics                                        $615

Stafford Township Tax Collector                   $602

Landscape Maintenance Services                    $267

Owen Little & Associates Inc.                     $216

Woodhaven Lumber & Millwork                       $180

Wagner Electric Corp.                             $157

AH. Kara at Kensington Hill, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Property Dev. Services II, Inc.                $11,680
700 Hooper Avenue
Toms River, NJ 08753

Scheer's Inc.                                   $5,537
601 Oakmont Street, Suite 400
Westmont, IL 60559

East Coast Site Work                            $3,012
6 Dickens Court
Howell, NJ 07731

G&R Trimming Contractors, Inc.                  $2,925

Willis Construction Services                    $2,105

Above All Heat                                  $1,498

Vintage                                         $1,442

Mr. John                                        $1,429

Shoreline Plumbing & Heating                    $1,215

All County Aluminum Inc.                        $1,206

Fortune Insulation Contracting                  $1,105

A-1 Bracket                                       $992

Dover Township                                    $538

Sunrise Concrete Company                          $538

Garden State Precast, Inc.                        $378

National Waterproofing Inc.                       $375

Home Depot/GECF                                   $343

Jersey Central Power and Light                    $312

JSW Inc.                                          $397

Johnny on the Spot                                $193

AI. Kara at Lakeshore Harbor, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Borough of Mt. Arlington                        $1,824
419 Howard Boulevard
Mount Arlington, NJ 07856

Thermal Design, Inc.                              $626
11 Timber Lane
Marlboro, NJ 07746

Willis Construction Services                      $450
25B Vreeland Road
Florham Park, NJ 07932

Wagner Electric Corp.                             $230

Jason and Kustra Albert                        Unknown

Mark and Darlene Anderson                      Unknown

Christina Andreano                             Unknown

Nikki Aquino                                   Unknown

Jim Baccaro                                    Unknown

Borough of Mt. Arlington                       Unknown

Ingrid Burke                                   Unknown

Caffrey                                        Unknown

Ms. Calabro                                    Unknown

Jim and Bletlko, Cindi Carrier                 Unknown

Dean Cary                                      Unknown

Club House (Lirelle)                           Unknown

Rosemarie Cohen                                Unknown

Thomas and Julianne Conklin                    Unknown

D&C Electrical Contractors Inc.                Unknown

Frank and Paula Darling                        Unknown

AJ. K & W Builders, Inc.'s Three Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Sayed Arafa                                    Unknown
598 Somerset
Toms River, NJ 08753

Dillon                                         Unknown
607 Somerset
Toms River, NJ 08753

Township of Dover                              Unknown
33 Washington Street
P.O. Box 728
Toms River, NJ 08754-0728

AK. Kara at Cedar Grove, LLC's 20 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Willis Construction Services                    $3,609
25B Vreeland Road
Florham Park, NJ 07932

Floors, Inc.                                      $931
2 Campus Drive
Burlington, NJ 08016

Bailey Square Janitorial Inc.                     $750
16 South Street
Freehold, NJ 07728

Terry Gribben's Transcription Service             $740

Staples Acc#NY@012185                             $166

George and Lynn Anderson                       Unknown

Kemel Aydin                                    Unknown

Matt and Amy Bales                             Unknown

Jason and Jill Bergman                         Unknown

Lee and Gene Blumenthal                        Unknown

Hany S. Brollesy                               Unknown

Pete and Karen Bruzzo                          Unknown

Capobianco                                     Unknown

Tracey and Anthony Castellano                  Unknown

Nancy Cattle                                   Unknown

Ceder Grove Township                           Unknown

Chris and Melanie Cervino                      Unknown

Tony Chuen/Xiang                               Unknown

Jerry Colombino                                Unknown

Cun Gaung Lin                                  Unknown

AL. Sterling Woods at Barnegat, LLC's 20 Largest Unsecured
Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
EWG                                             $4,408
215 First Street
Dunellen, NJ 08812

Willis Construction Services                    $3,370
25B Vreeland Road
Florham Park, NJ 07932

Jersey Central Power and Light                  $3,071
c/o Daniel F. Sahin, P.C.
P.O. Box 838
Clarksburgh, NJ 08510

East Coast Funding, LLC                         $2,940

East Coast Site Work                            $2,862

WSB Engineering Group, P.A.                     $2,502

All Concepts                                    $1,353

T.C. & Associates, Inc.                           $838

Blue Ribbon Roofing and Siding                    $820

Better Than the Rest Cleaning                     $375

National Waterproofing Inc.                       $375

Johannessen & Leone                               $345

East Lake Interiors LLC                           $300

Strober Building Supply, Inc.                     $266

Zee Medical Inc.                                  $193

New Jersey Natural Gas                            $175

Western Pest Services                             $159

Johnny on the Spot                                 $30

Costa                                          Unknown

Leonora Dattilo                                Unknown

AM. Kara at Tallymawr, LLC 's 20 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Sunrise Concrete Company                       $35,889
P.O. Box 435
911 Millcreek Road
Rushland, PA 18956

Willis Construction Services                   $28,553
25B Vreeland Road
Florham Park, NJ 07932

Krupnick Family Trust                          $24,748
1400 River Avenue
Lakewood, NJ 08701

G&R Trimming Contractors, Inc.                 $24,735

Big Jim's                                      $19,559

Fenton Tile Company                            $17,565

A-1 Bracket                                    $13,948

All County Aluminum, Inc.                      $10,270

Dover Township                                  $8,823

Richard Brand                                   $8,622

Integrated Home Technologies                    $8,018

East Lake Interiors LLC                         $6,522

Shoreline Plumbing & Heating                    $6,308

Mr. John                                        $5,450

RWZ Inc. Stairs & Rails                         $5,295

Dover Township                                  $5,000

Menser's Heating and Air, Inc.                  $4,853

Four Seasons Insulation Corp.                   $4,500

Berry Sahradnik Riordan & Benson P.C.           $3,531

Strober Building Supply, Inc.                   $2,590

AN. Kara at White Oak, LLC's 18 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Whirlpool Corp.                                   $431
P.O. Box 532415
Atlanta, GA 30353-2406

Scheer's Inc.                                     $159
601 Oakmont Street, Suite 400
Westmont, IL 60559

Willis Construction Services                      $132
25B Vreeland Road
Florham Park, NJ 07932

Thomas and Karen Aballo                        Unknown

Cotelo                                         Unknown

Filipone                                       Unknown

Debbie Guarino                                 Unknown

Suzanne Heagan                                 Unknown

Mahesh Khemraj                                 Unknown

Kleissler/Milazzo                              Unknown

Lewis                                          Unknown

Dr. and Hema Mehta                             Unknown

Roger Shupe                                    Unknown

Denis and Eileen Speranza                      Unknown

Ed and Diana Sunday                            Unknown

Township of Dover                              Unknown

Universal Forest/Eastern Division, Inc.        Unknown

Gabe Vitale                                    Unknown

AO. Kara at Berkeley, LLC's 19 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Township of Berkeley                           $40,296
627 Pinewald-Keswick Road
P.O. Box B
Bayville, NJ 08721-0287

Willis Construction Services                    $5,764
25B Vreeland Road
Florham Park, NJ 07932

Bell Concrete Inc.                              $2,716
40 Pine Avenue
Freehold, NJ 07728

Oswald Enterprises, Inc.                        $1,850

Wagner Electric Corp.                           $1,180

Michael J. Wright                                 $810

M&Z Engineering                                   $650

Jersey Central Power and Light                    $473

RWZ Inc. Stairs & Rails                           $452

Coast Bath Resurfacing                            $365

C&L Sweeper Services                              $243

Keystone/Maxx KSD Corp.                           $120

All County Aluminum Inc.                           $50

Home Depot/GECF                                    $37

Century Kitchens, Inc.                             $21

Cesar and Luz                                  Unknown

Laura Anderson                                 Unknown

Ozzie and Margie Berrios                       Unknown

Better Than the Rest Cleaning                  Unknown

AP. Kara at Madison, LLC's 11 Largest Unsecured Creditors:

   Entity                                 Claim Amount
   ------                                 ------------
Bayshore Regional S.A.                        $228,021

Wilentz Goldman and Spitzer                    $57,279
99 Woodbridge Center Drive
Woodbridge, NJ 07095-0958

Kirkpatrick and Lockhart                       $10,478
One Newark Center
Newark, NJ 07102

Township of Aberdeen                            $5,328

T&M Associates                                  $5,165

Harlyn Associates                               $1,500

Maser Consulting                                $1,410

Roy T. Deboer, P.A.                               $260

Michael and Teresa Batson                      Unknown

Anthony and Helen Scarpa                       Unknown

Township of Aberdeen                           Unknown


KENNY BRIGHT: Case Summary & Six Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Kenny Lanre Bright
        35396 Terra Cotta Circle
        Fremont, Ca 94536

Bankruptcy Case No.: 07-41693

Chapter 11 Petition Date: June 5, 2007

Court: Northern District of California (Oakland)

Debtor's Counsel: Marc Voisenat, Esq.
                  1330 Broadway, Suite 1035
                  Oakland, CA 94612
                  Tel: (510) 272-9710

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $100,000 to $1 Million

Debtor's Six Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Cal State 9 Credit Union                               $50,000
P.O. Box 271768
Concord, CA 94527

Chase                                                  $40,000
P.O. Box 94014
Palatine, IL 60094

M.B.N.A. Credit Card                                   $30,000
P.O. Box 15102
Wilmington, DE 19886

Discover Card                                          $17,000

American Express            consumer credit            $14,600

Bank of America                                         $9,000


KIRKLAND KNIGHTSBRIDGE: Unsecured Creditors to Recover 100%
-----------------------------------------------------------
Kirkland Knightsbridge LLC and its debtor-affiliate, Kirkland
Cattle Company, filed with the United States Bankruptcy Court for
the Northern District of California their Joint Chapter 11 Plan of
Reorganization.

                      Treatment of Claims

Under the Plan, Administrative and Priority Tax Claims will be
paid in cash in full.

                 Madison Capital's Secured Claims

Madison Capital's claim will be deemed allowed in full against the
Debtors in an amount equal to its compromise claim.  As of the
effective date, Madison Capital Comprise Claim represents a full
settlement and release of all disputes between the Debtors and
Madison Capital.

                       Other Secured Claims

The Debtors disclose that these entities hold secured claims
against the estates:

    * General Electric Capital Corporation's claim is secured by
      a lien on certain wine barrels and related equipment owned
      by Kirkland Knightsbridge;

    * Wells Fargo Home Mortgage's claim is secured by a first
      deed of trust on a single family dwelling owned by Kirkland
      Cattle located at 936 Augusta Circle in Napa, California;

    * Countryside Home Loans' claim secured by a first deed of
      trust on a single family dwelling owned by Kirkland Cattle
      located at 3223 vonUhlit Ranch Road in Napa, California;

    * Chase Auto Finance's claim secured by an auto loan on a 2002
      Infiniti I35 executive automobile owned by Kirkland Cattle;

    * Citifinancial Auto's claim is secured by an auto loan on a
      2001 BMW 740IL executive automobile owned by Kirkland
      Cattle; and

    * The Mechanics Bank's claim secured by an auto loan on a 2002
      Lexus RX 300 executive automobile owned by Kirkland Cattle.

Under the Plan, any defaults on these claims will be cured by the
effective date.

The County of Napa's secured claim will be paid in cash in full

                          Unsecured Claims

General Unsecured Claims against Kirkland Knightsbridge and
Kirkland Cattle will be paid in cash in full with interest at the
legal rate on or after the effective date.

                         Prepetition Claims

Prepetition Claims of Kirkland Cattle against Kirkland
Knightsbridge will be paid in full with interest at 10% per
annum from available Cash.  Under the Plan, as a condition of
confirmation, Kirkland Cattle's claim against Knightsbridge will
be deemed subordinated to the full payment of these claims:

     -- Knightsbridge's general unsecured claims; and
     -- priority claims for wages and employee benefits.

                         Interest Holders

Respective holders of interests in Kirkland Knightsbridge and
Kirkland Cattle will retain their interests but will only receive
distribution after all other claims are paid in full.

                   About Kirkland Knightsbridge

Kirkland Knightsbridge LLC dba Kirkland Ranch Winery
-- http://www.kirklandranchwinery.com/  -- operates vineyards
and wineries in the Napa Valley region and breeds cattle for
commercial consumption.  The company filed a chapter 11 petition
on September 21, 2006 (Bankr. N.D. Calif. Case No. 06-10628).  The
company's affiliate, Kirkland Cattle Company, filed a separate
chapter 11 petition in the same court under Case No. 06-10630.

John H. MacConaghy, Esq. at MacConaghy and Barnier, PLC represents
the Debtors in their restructuring efforts.  No Official Committee
of Unsecured Creditors has been appointed in the Debtors' cases.
When the Debtors sought protection from their creditors, they
listed assets and debts between $10 million to $100 million.


KOOSHAREM CORP: S&P Junks Rating on $100 Million Second-Lien Loan
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on staffing
firm Koosharem Corp., including raising the corporate credit
rating to 'B' from 'B-'.  The outlook is stable.

At the same time, S&P assigned a bank loan rating of 'B+', one
notch above the corporate credit rating, and a recovery rating of
'2', to Koosharem's $300 million first-lien bank loan facilities,
indicating its expectation of substantial (70%-90%) recovery of
principal in the event of a payment default.

The first-lien facilities consist of a $50 million revolving
credit facility due 2012 and a $250 million term loan B due 2014.

Standard & Poor's also assigned a bank loan rating of 'CCC+', two
notches below the corporate credit rating, and a recovery rating
of '6', to the company's $100 million second-lien term loan B due
2014, indicating our expectation of negligible (0%-10%) recovery
of principal in the event of a payment default.

The company will use proceeds to refinance the existing credit
facilities and to fund a special dividend of $80 million and the
$32.5 million acquisition of Ablest Inc.

Pro forma total debt is $358 million as of March 25, 2007.

"The upgrade reflects improving operating performance and the
realization of significant cost reductions as a result of the
successful integration of Koosharem's acquisition of formerly
underperforming RemedyTemp Inc. last year," said Standard & Poor's
credit analyst Hal F. Diamond.

Santa Barbara, California-headquartered Koosharem is the 12th-
largest staffing company in the U.S. and has a good position in
California, the nation's largest staffing market.

The ratings reflect Koosharem's limited geographic diversity,
niche position in the highly competitive and cyclical temporary
staffing industry, and active acquisition orientation.  The
company has a good track record of integrating acquisitions,
having purchased more than 50 staffing companies since 1990.
Koosharem doubled its size in 2006 with the RemedyTemp purchase
and exceeded its plan of achieving $27.3 million in annualized
synergies.  Koosharem improved margins through branch closures,
reduced headcount, and lower workers' compensation costs.


LENOX GROUP: S&P Holds CCC+ Rating and Revises Outlook to Negative
------------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' corporate
credit rating on Eden Prairie, Minnesota-based Lenox Group Inc.

In addition, Standard & Poor's revised its outlook on the rating
to negative from developing.

"The outlook revision reflects our concern with the company's
ongoing operating challenges despite its ability to receive an
amendment and restore near-term liquidity," said Standard & Poor's
credit analyst Bea Chiem.

On April 20, 2007, Lenox Group completed its $275 million
refinancing, which consists of a $100 million secured term loan
due 2013 and a $175 million asset-based revolving credit facility
due 2012.  The company used the proceeds of the amended and
restated term loan facility to refinance $47.4 million of term
debt outstanding and $42.2 million of revolver debt outstanding at
April 20, 2013.

During the quarter ended March 31, 2007, all of the company's
business segments' operating margins declined.

"The ratings on Lenox Group reflect its poor operating
performance, declining channel sales, and leveraged financial
profile," said Ms. Chiem.


LEXINGTON PRECISION: March 31 Balance Sheet Upside-Down by $29.9MM
------------------------------------------------------------------
Lexington Precision Corp. reported a net loss of $917,000 on net
sales of $22,530,000 for the first quarter ended March 31, 2007,
compared with a net loss of $400,000 on net sales of $24,798,000
for the same period ended March 31, 2006.

The decrease in net sales was principally a result of decreased
unit sales of automotive components offset, in part, by increased
unit sales of medical components.  EBITDA for the first quarter of
2007 was $2,970,000, or 13.2% of net sales, compared to EBITDA of
$3,828,000, or 15.4% of net sales, for the first quarter of 2006.

At March 31, 2007, the company's balance sheet showed $59,175,000
in total assets and $89,081,000 in total liabilities, resulting in
a $29,906,000 total stockholders' deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with $25,441,000 in total current assets
available to pay $87,818,000 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available for
free at http://researcharchives.com/t/s?20cb

                      Going Concern Doubt

As reported in the Troubled Company Reporter on May 2, 2007, Ernst
& Young LLP, in Cleveland, Ohio, expressed substantial doubt about
Lexington Precision Corporation's ability to continue as a going
concern after auditing the company's financial statements at Dec.
31, 2006, and 2005.  The auditing firm reported that:

    -- The company failed to pay quarterly interest payments that
       were due on its Senior Subordinated Notes on Nov. 1, 2006,
       and Feb. 1, 2007, resulting in substantially all of the
       company's debt to be in default as of Dec. 31, 2006.

    -- As of Feb. 28, 2007, the company failed to comply with a
       fixed charge coverage ratio covenant that is contained in
       its secured borrowing arrangements.

    -- On April 5, 2007, the company was notified that the
       company's ability to borrow under its revolving line of
       credit will be terminated after May 7, 2007.  The company
       has been unwilling to agree to the terms proposed by the
       secured lenders.

    -- On April 6, 2007, the company received a notice of
       acceleration demanding immediate payment in full of a
       portion of the obligations due under its real estate term
       loan from an entity that holds $4,000,000 of the loan.

    -- The company has a working capital deficiency and a
       stockholders' deficit.

                   About Lexington Precision

Lexington Precision Corporation (OTC BB: LEXP) manufactures rubber
and metal components that are sold to other manufacturers
primarily in the U.S.  The company operates in two segments,
Rubber Group and Metals Group.  The Rubber Group manufactures
connector seals used in automotive wiring systems and insulators
used in automotive ignition wire sets.  The Metals Group
manufactures machined components from aluminum, brass, and steel
bars.


MARQUEE HOLDINGS: Consent Solicitation Due Today
------------------------------------------------
Marquee Holdings Inc. has extended, until 5:00 p.m., today,
June 12, 2007, New York City time, its solicitation of consents
from holders of its 12% Senior Discount Notes due 2014 to amend
the indenture governing the Notes.

Marquee has also increased the consent fee to consenting holders
from $10.00 to $14.44 for each $1,000 in principal amount at
maturity of Notes as to which consents are delivered, subject to
the conditions described in the consent solicitation statement of
Marquee dated June 5, 2007 and the accompanying Letter of Consent.

The Amendment would revise the restricted payments covenant to
permit Marquee to make restricted payments in an aggregate amount
of $275.0 million prior to making an election to pay cash interest
on the Notes.  The Amendment will also contain a covenant by
Marquee to make an election on Aug. 15, 2007, the next semi-annual
accretion date under the Indenture, to pay cash interest on the
Notes.  As a result, Marquee would be required to make its first
cash interest payment on the Notes on Feb. 15, 2008.

All holders of the Notes who have previously delivered consents do
not need to redeliver such consents or take any other action in
response to this extension in order to receive the increased
consent fee upon the successful conclusion of the Consent
Solicitation.  Other holders of notes may use the previously
distributed Letter of Consent for purposes of delivering their
consents.  Marquee reserves the right to terminate, withdraw or
amend the Consent Solicitation at any time subject to applicable
law.

Marquee has retained J.P. Morgan Securities Inc. to act as
solicitation agent in connection with the Consent Solicitation.

                     About AMC Entertainment

Based in Kansas City, Missouri, AMC Entertainment Inc. --
http://www.amctheatres.com/-- is a worldwide leader in the
theatrical exhibition industry.  The company serves more than 250
million guests annually through interests in 415 theatres and
5,672 screens in 12 countries including the United States.

                     About Marquee Holdings

Based in Kansas City, Mo., Marquee Holdings Inc. is organized as
an intermediate holding company with no operations of its own.
The Company's principal directly owned subsidiaries are American
Multi-Cinema, Inc., Grupo Cinemex, S.A. de C.V., and AMC
Entertainment International, Inc.


MARQUEE HOLDINGS: Fitch to Rate Potential $275MM Term Loan at CCC
-----------------------------------------------------------------
Fitch has affirmed the Issuer Default Ratings of Marquee Holdings
Inc. and its principal operating subsidiary AMC Entertainment,
Inc., at 'B' following the company's recent announcement.

Fitch expects to rate the new $400 million senior unsecured term
facility 'CCC/RR6' and would also expect to rate the potential
$275 million senior unsecured term loan facility 'CCC/RR6' based
on their deep structural subordination in the capital structure.
The Rating Outlook is Stable.

Marquee Holdings has announced an intention to enter into a five-
year $400 million senior unsecured term loan facility at an
additional holding company level, named AMC Entertainment
Holdings, Inc., to fund a dividend payout to Marquee's current
shareholders. Neither Marquee or its operating subsidiary AMC
Entertainment or its subsidiaries will be a party to the
transaction.  Simultaneously, Marquee announced a consent
solicitation to amend the indenture of its existing discount notes
due 2014 to accommodate a dividend payment of up to $275 million
prior to the next accretion date on Aug. 15, 2007.  If the
amendment is approved, Marquee intends to use cash on hand at AMC
Entertainment but also has an option to fund the dividend by
entering into an additional $275 million senior unsecured term
loan facility.  The note holders are offered a 1.44% consent fee
at maturity. Regardless of the results of the solicitation,
entering into the proposed $400 million facility would trigger a
cash interest payout on the discount notes estimated at
approximately $29 million per year beginning on Feb. 15, 2008.
This announcement follows the suspension of Marquee's IPO on May
3, 2007.

Fitch believes that AMC/Marquee has sufficient financial
flexibility at its current rating to fund the additional debt
service payments due to the recent debt reduction, solid operating
performance and expectations for a continued strong box office
performance for the remainder of the summer season.  In March
2007, the company allocated all proceeds from the National
CineMedia IPO and $109 million in cash toward debt repayment and
fully redeemed approximately $600 million of its higher coupon
operating company senior and subordinated notes.  Therefore, while
the proposed transaction will result in higher consolidated debt
levels, potentially reaching the level prior to the debt
reduction, Fitch notes that the new debt does not affect the
default probability and recovery expectations of the operating
company debt ranked higher in the capital structure.

Liquidity profile may be weakened if the company chooses to fund
the $275 million additional dividend with cash on hand at AMC,
pending the results of the consent solicitation.  The company
reported a proforma cash balance of $362 million and $177 of
availability under its revolving facility as of Dec. 28, 2006.

Following the suspension of the AMC IPO in early May 2007, Fitch's
ratings incorporated the potential for another equity offering and
a dividend, albeit a lower one, to the shareholders.  Therefore,
Fitch believes that the announced plan to return capital to the
current shareholders is within the existing and expected financial
policies reflected by the 'B' rating.

Fitch affirms these ratings:

  AMC

    -- Issuer Default Rating 'B';
    -- Senior secured credit facilities 'BB/RR1';
    -- Senior unsecured notes 'B/RR4';
    -- Senior subordinated notes 'CCC+/RR6'.

  Marquee

    -- Issuer Default Rating 'B';
    -- Senior discount notes 'CCC/RR6'.

The Rating Outlook is Stable.

                   About AMC Entertainment

Based in Kansas City, Missouri, AMC Entertainment Inc. --
http://www.amctheatres.com/-- is a worldwide leader in the
theatrical exhibition industry.  The company serves more than 250
million guests annually through interests in 415 theatres and
5,672 screens in 12countries including the United States, Hong
Kong, Brazil and the United Kingdom.

                    About Marquee Holdings

Based in Kansas City, Mo., Marquee Holdings Inc. is organized as
an intermediate holding company with no operations of its own.
The Company's principal directly owned subsidiaries are American
Multi-Cinema, Inc., Grupo Cinemex, S.A. de C.V., and AMC
Entertainment International, Inc.


MARQUEE HOLDINGS: Moody's Revises Outlook to Negative from Stable
-----------------------------------------------------------------
Moody's Investors Service changed the outlook for Marquee Holdings
Inc. (parent of AMC Entertainment Inc.) to negative from stable.

Moody's also assigned a B3 rating to its proposed debt at AMC
Entertainment Holdings, Inc., a newly created entity that will
become the parent of Marquee.  The company intends to use proceeds
to fund a dividend to Marquee's current stockholders.

The negative outlook reflects concerns over the increase in
leverage to 7.2 times debt-to-EBITDA from 6.7 times (based on
estimated results for the year ended March 31, 2007, and as per
Moody's standard adjustments, which include operating leases).
Furthermore, the transaction creates no value for creditors and
represents a reversal from the commitment to improving Marquee's
credit profile that management demonstrated by repaying debt with
proceeds from the National CineMedia transactions.  If
Marquee's debt-to-EBITDA remains in excess of 7 times over the
next year, or if the company does not generate positive free cash
flow, Moody's would likely downgrade the corporate family rating
to B2.  Conversely, Moody's would consider stabilizing the outlook
with:

   (1) leverage below 7 times and on track to fall to the low to
       mid 6 times; and

   (2) positive free cash flow.

The B3 rating on the proposed debt incorporates its junior-most
position in the capital structure, and the LGD6 93% reflects its
low recovery prospects as a result of the material amount of
claims ranking senior to it that would have to be repaid first in
a default scenario.  This new debt does not benefit from any
subsidiary guarantees, nor does it have a security interest in any
assets of the company.  It is structurally subordinated to all
other debt in the capital structure, which, inclusive
of capitalized operating leases, comprises approximately $5.5
billion.  The introduction of this junior-ranking claim of size to
the company's consolidated capitalization, however, results in an
upgrade of the rating for the higher-ranking (via structural
seniority) senior subordinated notes to B2, from B3, as the LGD
estimate is reduced.  All other ratings were affirmed.  A summary
of rating actions follows, including
updated LGD assessments and point estimates to reflect the new
capital structure.

   * Marquee Holdings Inc.

     -- Outlook changed to negative from stable;
     -- Affirmed B1 corporate family rating;
     -- Affirmed B1 probability of default rating.

   * AMC Entertainment Holdings, Inc. (newly created entity)

     -- Assigned B3, LGD6, 93% to proposed Senior Unsecured Bank
        Credit Facility.

   * AMC Entertainment, Inc.

     -- Senior Subordinated Bonds, Upgraded to B2 from B3, LGD5,
        73%;

     -- Affirmed Ba1 on Senior Secured Bank Credit Facility,
        LGD2, 12%;

     -- Affirmed Ba3 on Senior Unsecured Bonds, LGD3, 34%.

   * Marquee Holdings, Inc.

     -- Affirmed B3 on Senior Unsecured Bonds, LGD5, 87%.

The B1 corporate family rating for Marquee continues to reflect
high leverage, sensitivity to product from movie studios, and a
weak industry growth profile, offset by good liquidity and the
advantages of scale and geographic diversity.

                   About Marquee Holdings

Based in Kansas City, Mo., Marquee Holdings Inc. is organized as
an intermediate holding company with no operations of its own.
The Company's principal directly owned subsidiaries are American
Multi-Cinema, Inc., Grupo Cinemex, S.A. de C.V., and AMC
Entertainment International, Inc.  Its annual revenue is
approximately $2.5 billion.

                   About AMC Entertainment

Headquartered in Kansas City, Mo., AMC Entertainment Inc. --
http://www.amctheatres.com/-- is a theatrical exhibition company
with interests in about 382 theatres with 5,340 screens as of Dec.
28, 2006.  About 87 percent of the company's theatres are located
in the U.S. and Canada, and 13 percent in Mexico, Argentina,
Brazil, Chile, Uruguay, Hong Kong, France, and the U.K.


MARQUEE HOLDINGS: S&P Holds Ratings on Special Dividend Payment
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned a 'B' corporate credit
rating and stable outlook to AMC Entertainment Holdings Inc., the
new super-holding company of Marquee Holdings Inc. and ultimate
parent of operating company AMC Entertainment Inc.

S&P also assigned a 'CCC+' rating to AMC Entertainment Holdings
Inc.'s proposed $400 million senior unsecured pay-in-kind term
loan facility due 2012 and a 'CCC+' rating to its 364-day
$275 senior unsecured PIK term loan due 2008.

At the same time, S&P affirmed its issue ratings on AMC
Entertainment Inc. and its parent company, Marquee Holdings Inc.

S&P also withdrew the corporate credit ratings on the two
companies.

The issue rating affirmation follows Marquee's announcement that
it intends to pay a partially debt-funded $675 million special
dividend.

Kansas City, Missouri-headquartered movie theater chain AMC will
have either $2.3 billion or $2.6 billion in debt following the
proposed transaction, and approximately $2.8 billion in present
value of operating lease obligations.

"The rating on AMC reflects the company's high tolerance for
financial risk, its high leverage, and its lower EBITDA margins
relative to peers," said Standard & Poor's credit analyst Tulip
Lim.  "It also considers the company's participation in the mature
and highly competitive U.S. movie exhibition industry, exposure to
the fluctuating popularity of Hollywood films, and risk of
increased competition as entertainment alternatives proliferate
and movie release windows shorten."

These risks are partially offset by the company's size, modern
theater circuit relative to other major theater chains, and large
and geographically diverse U.S. operations.

AMC is the second-largest exhibitor in the U.S., with good
positions in large, urban markets.  The company has the No. 1 or
No. 2 market share in 21 of the nation's top 25 markets.


MASTR SECOND: S&P Puts D Rating on Two Certificate Classes
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on nine
classes of certificates from MASTR Second Lien Trust's series
2005-1 and 2006-1.

Of the nine lowered ratings, S&P placed one on CreditWatch with
negative implications, four remain on CreditWatch negative, and
S&P removed two from CreditWatch negative.

Concurrently, S&P placed its ratings on three additional classes
on CreditWatch negative.  Lastly, we affirmed the ratings on the
remaining six classes from these transactions.

The downgrades and CreditWatch placements reflect the continued
weaker-than-expected collateral pool performance.  In the past six
months, monthly net losses for series 2005-1 have consistently
exceeded excess interest cash flow.  This adverse performance has
caused a complete erosion of overcollateralization, resulting in a
cumulative principal write-down of $1.840 million to class M-9.

As of the May 2007 remittance report, cumulative realized losses
were 6.10% ($15,087,941) of the original pool balance.  In
addition, serious delinquencies (90-plus-days, foreclosures, and
REOs), as a percentage of the current pool balance, were 3.14%
($3,259,923).  For series 2006-1, monthly losses have continued to
outpace excess interest cash flow.

This adverse performance pattern has caused a complete erosion of
O/C, resulting in cumulative principal write-downs of $1.045
million and $5.492 million to classes M-7 and M-8, respectively.

As of the May 2007 remittance period, cumulative realized losses
were 8.49% ($27,441,281) of the original pool balance.

Furthermore, 5.08% ($9,484,600) of the collateral pool is
categorized as severely delinquent.

Standard & Poor's will continue to closely monitor the performance
of the certificates with ratings on CreditWatch.  If monthly
losses continue to outpace monthly excess interest cash flow,
additional negative rating actions can be expected.  Conversely,
if pool performance improves and credit support is not further
compromised, we will affirm the ratings and remove them from
CreditWatch.

S&P removed the ratings on class M-8 from series 2005-1 and class
M-6 from series 2006-1 from CreditWatch negative because they were
lowered below 'B-'.  According to Standard & Poor's surveillance
practices, classes of certificates or notes from RMBS transactions
with ratings lower than 'B-' are no longer eligible to be on
CreditWatch negative.

The affirmations are based on credit support percentages that are
sufficient to maintain the current ratings, despite the
unfavorable performance trend.

The collateral consists primarily of fixed-rate, closed-end,
second-lien mortgage loans secured by one- to four-family
residential properties.

                      Ratings Lowered

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                                      Rating
                                      ------
               Series   Class     To          From
               ------   -----     --          ----
               2005-1   M-9       D           CCC
               2006-1   M-7       D           CCC

        Rating Lowered and Placed on Creditwatch Negative

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                                      Rating
                                      ------
               Series   Class    To             From
               ------   -----    --             ----
               2005-1   M-5      BB/Watch Neg   BBB

      Ratings Lowered and Remaining on Creditwatch Negative

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                                    Rating
                                    ------
           Series   Class    To                  From
           ------   -----    --                  ----
           2005-1   M-6      BB-/Watch Neg       BBB-/Watch Neg
           2005-1   M-7      B/Watch Neg         BB+/Watch Neg
           2006-1   M-4      BB/Watch Neg        BBB+/Watch Neg
           2006-1   M-5      B/Watch Neg         BB/Watch Neg

        Ratings Lowered and Removed from Creditwatch Negative

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                                    Rating
                                    ------
             Series   Class     To          From
             ------   -----     --          ----
             2005-1   M-8       CCC         B/Watch Neg
             2006-1   M-6       CCC         B/Watch Neg

                Ratings Placed on Creditwatch Negative

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                                      Rating
                                      ------
                Series  Class   To                From
                -----   -----   --                ----
                2005-1  M-4     BBB+/Watch Neg    BBB+
                2006-1  M-2     A/Watch Neg       A
                2006-1  M-3     A-/Watch Neg      A-

                       Ratings Affirmed

                    MASTR Second Lien Trust
               Mortgage pass-through certificates

                  Series     Class       Rating
                  ------     -----       ------
                  2005-1     A           AAA
                  2005-1     M-1         AA
                  2005-1     M-2         A
                  2005-1     M-3         A-
                  2006-1     A           AAA
                  2006-1     M-1         AA


MIGUEL AVILA: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtors: Miguel I. Avila
         Evangelina A. Avila
         P.O. Box 581494
         Modesto, CA 95358

Bankruptcy Case No.: 07-90594

Chapter 11 Petition Date: June 7, 2007

Court: Eastern District of California (Modesto)

Judge: Robert S. Bardwil

Debtors' Counsel: David C. Johnston, Esq.
                  Gianelli & Associates, PLC
                  P.O. Box 3212
                  Modesto, CA 95353-3212
                  Tel: (209) 521-6260
                  Fax: (209) 521-5971

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.


MORGAN STANLEY: Fitch Affirms BB Rating on Class F Certificates
---------------------------------------------------------------
Fitch Ratings affirms Morgan Stanley Capital I Inc.'s commercial
mortgage pass-through certificates, series 1998-XL2:

    -- $716,000 class A-1 at 'AAA';
    -- $467.1 million class A-2 at 'AAA';
    -- $75.9 million class B at 'AAA';
    -- $42.4 million class C at 'AA+';
    -- $45.9 million class D at 'A+';
    -- $21.2 million class E at 'BBB';
    -- $10.6 million class F at 'BB' and
    -- Interest Only class X at 'AAA'.

The affirmations are the result of limited amortization and stable
loan performance.  As of the June 2007 distribution date, the
transaction's principal balance has decreased 6% to $663.9 million
from $706.5 million at issuance.  Based on an analysis of year-end
2006 income and expenses, the Fitch stressed debt service coverage
ratio for the transaction is 1.58 times.

The certificates are collateralized by seven fixed rate mortgage
loans, two of which are interest-only retail portfolio loans,
Edens & Avant I and II (29.4%), four are loans on regional malls
(61.7%) located in four states, and one is a loan on an office
property, Crystal Park IV, (8.9%) located in suburban
Virginia/Washington D.C.  The six retail loans all have investment
grade credit assessments, and as of June 2007, 23.6% of the Edens
& Avant portfolio has defeased.  All of the mall loans, Grapevine
Mills in Texas (22.1%), Mall of New Hampshire (14.4%), Westside
Pavilion in Los Angeles (13.9%) and Northtown Mall in Spokane,
Washington (11.3%) have improved DSCR since issuance.

The Crystal Park IV office loan is secured by a class A-suburban
office building located in the Crystal City submarket of
Arlington, Virginia, U.S. Air, a substantial tenant, vacated in
March 2006.  Occupancy at the property has increased to 72% as of
March 2007, up from 51% at YE 2006.  Although the loan continues
to perform below expectations at issuance, Fitch anticipates the
owner/manager will be successful in improving the collateral
performance.


NORTHWEST AIRLINES: S&P Removes Watch on Certificates' Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on certain
enhanced equipment trust certificates of Northwest Airlines Inc.
(B+/Stable/--) and removed the ratings from CreditWatch.

Certain other ratings were withdrawn or remain on CreditWatch, and
ratings of 'AAA' rated, insured EETCs, which were not on
CreditWatch, were affirmed.

"The upgrades reflect improved credit quality following
Northwest's May 31, 2007, emergence from bankruptcy and our review
of factors that affect expected payment prospects, including those
in any future insolvency proceedings," said Standard & Poor's
credit analyst Philip Baggaley.  S&P's criteria for rating EETCs
incorporate credit for the likelihood of continued payment per the
terms of the certificates (which require timely interest payments,
backed by liquidity facilities sufficient to pay up to 18 months
of interest obligations, and "soft amortization" of principal,
which is due at the legal final maturity of the certificates) and
credit for collateral coverage which could permit repayment using
proceeds from repossessing and selling aircraft.

Upgrades in each case factored in Northwest's revised corporate
credit rating, which was raised to 'B+' from 'D' on May 31. In
addition, the factors specific to individual EETCs were
considered, including collateral coverage, the effect of the
revised priority of payments triggered by Northwest's bankruptcy
filing, and the effect of some liquidity providers terminating
their facilities supporting EETCs.

The 'B+' corporate credit rating reflects Northwest's
participation in the competitive, cyclical, and capital-intensive
U.S. airline industry, on a still highly leveraged financial
profile, and with substantial upcoming capital expenditures to
modernize its aircraft fleet.  The rating also incorporates the
airline's improved operating cost structure (mostly due to labor
concessions) and reductions in debt and leases achieved in Chapter
11.


OSI RESTAURANT: Moody's Cuts Rating to B1 on Three Bank Loans
-------------------------------------------------------------
Moody's Investors Service affirmed the B2 corporate family rating
of OSI Restaurant Partners, Inc. in addition to other rating
actions as:

Ratings affirmed are:

   -- B2 corporate family rating;

   -- B2 probability of default rating;

   -- $550 million senior unsecured notes maturing in 2015
      rated Caa1 (LGD5, 85%);

   -- SGL-2 Speculative Grade Liquidity rating.

Ratings lowered are:

   -- $150 million working capital revolver maturing in 2013,
      lowered to B1 (LGD-3, 33%) from Ba3 (LGD3, 28%)

   -- $100 million pre-funded revolver maturing in 2013, lowered
      to B1 (LGD-3, 33%) from Ba3 (LGD3, 28%)

   -- $1.310 billion term loan B maturing in 2014, lowered to B1
      (LGD-3, 33%) from Ba3 (LGD3, 28%)

   -- The outlook is stable

The B2 corporate family rating reflects OSI's high financial
leverage, modest coverage, and marginal free cash flow generation,
as well as the highly competitive environment within the casual
dining segment of the restaurant industry which will likely
persist over the intermediate term.  Moody's believes the
operating environment in the casual dining space will remain
challenging as consumers continue to focus on greater value in
regards to food prepared away from home.  However, the ratings
also incorporate OSI's significant scale and scope, the benefits
of a diversified revenue stream stemming from the various concepts
and good liquidity.

The lowering of the senior secured bank loan ratings was prompted
by the change in OSI's liability structure as a result of an
increase in total secured debt of approximately $230 million, due
to the re-allocation of approximately $150 million of unsecured
debt to secured debt, in addition to $80 million of additional
secured debt required to fund the transaction.

The stable outlook anticipates that while the operating
environment will remain challenging, OSI's strategic initiatives
and targeted cost savings should help to improve debt protection
metrics and overall financial flexibility over time.  The stable
outlook also indicates good liquidity and reflects Moody's
expectation that OSI's internally generated cash flow and cash
balances will be sufficient in funding capital expenditures,
mandatory term loan B amortization, working capital fluctuations
and other internal investments over the next twelve months.

Proceeds from the proposed transaction together with a commercial
mortgage backed transaction and contributed equity will fund the
acquisition of OSI by two private equity sponsors, Bain Capital
Partners and Catterton Partners, along with other sponsors that
include OSI's founders and members of the current management team.

As is customary, all of Moody's assigned ratings are subject to
review of final documentation.

OSI Restaurant Partners, Inc.'s portfolio of brands consists of
OutbackSteakhouse, Carrabba's Italian Grill, Bonefish Grill,
Fleming's PrimeSteakhouse & Wine Bar, Roy's, Lee Roy Selmon's,
Blue Coral Seafood &Spirits and Cheeseburger in Paradise
restaurants.  It has operations in 50 states and 20 countries,
including Thailand, Brazil and the United Kingdom,
internationally.  Revenues for fiscal 2006 totaled $3.9 billion.


OSI RESTAURANT: Higher Leverage Cues S&P to Downgrade Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Tampa, Florida-based OSI Restaurant Partners Inc. to 'B'
from 'B+'.

The company's bank loan ratings, including the ratings on its
$150 million revolving credit facility due 2013, $1.31 billion
term loan B due 2014, and $100 million prefunded revolving credit
facility due 2013, have been lowered to 'BB-' from 'BB'.

At the same time, the rating on OSI's $550 million 9.625% notes
due 2015 has been lowered to 'CCC+' from 'B-.'

The outlook is stable.

The downgrade follows OSI's announcement that the company will
fund the $80 million increase in its purchase price with debt
rather than an equity contribution.  The resulting capital
structure is highly leveraged at nearly 8x and results in thin
cash flow protection measures.  S&P expects the transaction
to close by June 19, 2007.

"A positive outlook would be considered," said Standard & Poor's
credit analyst Jackie E. Oberoi, "were OSI to reduce leverage
through measures that include increased profits as a result of
improvement in same-store sales for OSI's core Outback Steakhouse
concept and continued success with recent expense-reduction
measures."


PAC-WEST TELECOMM: Section 341(a) Meeting Continued to July 11
--------------------------------------------------------------
The U.S. Trustee for Region 3 will continue a meeting of Pac-West
Telecomm Inc.'s creditors on July 11, 2007, at 10:00 a.m., and
will be held at the J. Caleb Boggs Federal Building, 844 King
Street, Room 2112 in Wilmington, Delaware.

The creditors' meeting was initially held on June 7, 2007, at
10:30 a.m.

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 office of the
Debtor under oath about the company's financial affairs and
operations that would be of interest to the general body of
creditors.

                     About Pac-West Telecomm

Based in Stockton, California, Pac-West Telecomm Inc. (OTC:
PACW.PK) -- http://www.pacwest.com/-- is a local exchange
carrier.  Pac-West's network averages over 120 million minutes of
voice and data traffic per day, and carries an estimated 20% of
the dial-up Internet traffic in California.  In addition to
California, Pac- West has operations in Nevada, Washington,
Arizona, and Oregon.

The company and its affiliates filed for Chapter 11 protection on
April 30, 2007 (Bankr. D. Del. Case Nos. 07-10562 through
07-10567).  Jeremy W. Ryan, Esq. and Norman L. Pernick, Esq. of
Saul, Ewing, Remick & Saul LLP represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed total assets of $53,883,888 and total
debts of $66,358,711.


PACIFIC LUMBER: May Continue to Use Cash Collateral Until June 22
-----------------------------------------------------------------
The Hon. Richard S. Schmidt of the United States Bankruptcy Court
for the Southern District of Texas has authorized Pacific Lumber
Company and its debtor-affiliates to continue using cash
collateral through and including June 22, 2007.

The Debtors have not filed a revised budget with the Court as of
June 7, 2007.

As reported in the Troubled Company Reporter on May 3, 2007, the
Debtors are only permitted to use cash collateral for the
purposes enumerated in the budget.  The Debtors are not permitted
to use cash collateral for payment of professional fees,
disbursements, costs, or expenses incurred in connection with
asserting any claims or causes of action against the Lenders.

The Court has scheduled a hearing for June 22, 2007, to consider
the Debtors' continued use of cash collateral.

                      About Pacific Lumber

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

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

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

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

When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335.  The Debtors' exclusive period to file a chapter
11 plan expires on Sept. 18, 2007, as extended.  The Debtors'
exclusive period to solicit acceptances of that plan expires on
Nov. 19, 2007.  (Scotia/Pacific Lumber Bankruptcy News, Issue No.
17, http://bankrupt.com/newsstand/or 215/945-7000).


PACIFIC LUMBER: Scopac May Use Cash Collateral Until August 31
--------------------------------------------------------------
The United States Bankruptcy Court for the Southern District of
Texas has authorized Scotia Pacific Company LLC to continue using
cash collateral solely in accordance with a cash flow budget
through the weekending August 31, 2007.

The Court also approved the stipulation by Scotia Pacific, the
Official Committee of Unsecured Creditors, Bank of America
National Trust and Savings and Bank of New York Trust Company
N.A., as successor indenture trustee under the Indenture dated
July 1998 between Scopac and Staten Street Bank and Trust
Company, that the Committee has until July 9, 2007, to investigate
the amount of the Prepetition Claims, and the extent, validity and
priority of liens, under the Prepetition Collateral, of BofA and
BoNY.

A full-text copy of Scopac's cash flow budget through the week
ending Aug. 31, 2007, is available for free at:

              http://researcharchives.com/t/s?20c7

Scotia Pacific Company LLC also delivered to the Court cash flow
projections for the week ending June 8, 2007, through Aug. 31,
2007, a full-text copy of which is available for free at:

              http://researcharchives.com/t/s?20c8

As reported in the Troubled Company Reporter on March 16, 2007,
the Court said that Scopac's request for use of cash collateral
is necessary, essential and appropriate for the preservation of
its estates and the operation of its business.

           BoNY Opposes Scopac Cash Collateral Budget

The Bank of New York Trust Company N.A., as indenture trustee for
the Timber Notes issued by Scopac, does not consent to Scopac's
proposed cash collateral budget for the period ending August
2007.

BoNY, however, is willing to commit to Scopac's use of cash
collateral for one week pursuant to an amended supplemental
budget to permit negotiations on three issues where Scopac wishes
to:

(a) interfere with BonY's choice of counsel and financial
     advisor;

(b) avoid paying fees that Scopac previously estimated under
     several budgets; and

(c) deny BoNY's counsel and financial advisor meaningful use
     of information.

Zack A. Clement, Esq., at Fulbright & Jaworski LLP, in Houston,
Texas, relates that he met with Scopac's counsel to discuss three
open matters:

1. Scopac's then proposed Supplemental Budget,

2. Scopac's request to BoNY for the engagement letters to hire
    Fulbright & Jaworski as BoNY's legal counsel, and Houlihan
    Lokey Howard & Zukin as BoNY's financial advisor concerning
    the Timber Notes, and

3. Scopac's request that Fulbright & Jaworski sign a
    confidentiality agreement that would require filing
    numerous pleadings under seal.

Mr. Clement says that his firm made proposals on each of these
issues.

Scopac, Mr. Clement relates, responded to the proposals only
after it had circulated an Amended Supplemental Budget showing
substantially reduced revenues -- a matter raising significant
issues.

A full-text copy of the Scopac's Amended Supplemental Budget is
available for free at:

              http://researcharchives.com/t/s?20c9

As to the Amended Supplemental Budget, BoNY wants Houlihan Lokey
to be permitted to finish its due diligence with Scopac's chief
financial officer, Mr. Clement tells the Court.

BoNY also wants Scopac to take the monthly $450,000 that it has
placed in each draft of the Supplemental Budget for Fulbright
Jaworski and Houlihan Lokey, and apply the amount to budget items
for BoNY.

BoNY wants the monthly $450,000 to be broken down into separate
payments of:

-- $150,000 to Houlihan Lokey,
-- $250,000 to Fulbright & Jaworski, and
-- $50,000 to Thompson & Knight, if it bills that much.

On the other hand, Scopac has continued its curiosity regarding
the amount of certain Timber Noteholders' holdings, Mr. Clement
notes.  "This is intrusive on confidential commercial
information," Mr. Clement avers.

"Since [BoNY] has no duty to provide this information pursuant to
Rule 2019 of the Federal Rules on Bankruptcy Procedure, such a
holder, having permitted it to be voluntarily provided, has no
obligation to provide any further information concerning the
price at which it bought its notes," Mr. Clement maintains.

In view of the stated reasons, BoNY does not consent to Scopac's
Amended Supplemental Budget.

                      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 Sept. 18, 2007, as extended.  The Debtors'
exclusive period to solicit acceptances of that plan expires on
Nov. 19, 2007.  (Scotia/Pacific Lumber Bankruptcy News, Issue No.
17, http://bankrupt.com/newsstand/or 215/945-7000).


PACIFIC LUMBER: Noteholders to Appeal Scopac Single Asset Order
--------------------------------------------------------------
The Fifth Circuit of the Court of Appeals has granted the petition
of the Ad Hoc Group of Noteholders in Pacific Lumber Company's and
debtor-affiliates' bankruptcy cases petition, for leave to file
appeal of the United States Bankruptcy Court's denial of the
panel's request to deem Scotia Pacific Company LLC as a single
real estate debtor, under Section 158(d) of the Judiciary and
Judicial Procedures Code.

Section 158(d) provides that upon consensual certification of the
parties or certification by the relevant Bankruptcy Court or
District Court, an appeal may be taken directly to the United
States Court of Appeals, if any of three circumstances exist:

  1. The judgment, order or decree involves a question of law
     as to which there is no controlling decision of the court
     of appeals for the circuit or of the Supreme Court of the
     United States, or involves a matter of public importance;

  2. The judgment, order or decree involves a question of law
     requiring resolution of conflicting decisions; or

  3. An immediate appeal from the judgment, order or decree may
     materially advance the progress of the case or proceeding
     in which the appeal is taken.

As reported in the Troubled Company Reporter on April 17, 2007,
the Noteholder Committee wanted the Fifth Circuit to review
whether:

  (i) Section 101(51B) of the Bankruptcy Code is limited to
      "passive" businesses that merely "own or acquire property
      merely with an eye for holding it and flipping it when the
      market turns or idly sit and collect rent";

(ii) Section 101(51B) applies to an "active" business, like
      Scopac's silvicultural operations, that involve operating
      real property to generate substantially all of the
      Debtor's gross income; and

(iii) the term "single property or project" under Section
      101(51B) applies to Scopac's silvicultural operations,
      which involve operating the Scopac Timberland and its real
      property interests in timber pursuant to a common plan.

The Noteholder Committee asserted that the SARE Appeal presents
matters of public importance, and would materially advance the
progress of Scopac's case.

                      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 Sept. 18, 2007, as extended.  The Debtors'
exclusive period to solicit acceptances of that plan expires on
Nov. 19, 2007.  (Scotia/Pacific Lumber Bankruptcy News, Issue No.
17, http://bankrupt.com/newsstand/or 215/945-7000).


PATHEON INC: Posts $22 Million Net Loss in Second Quarter 2007
--------------------------------------------------------------
Patheon Inc. reported that its second-quarter revenues were
$181 million, which decreased by $8.9 million, or 5%, over the
same period a year ago.  The net loss for the quarter was
$22 million, as compared with net earnings of $3 million a year
ago.

The company's net income in the second quarter was impacted by
one-time expenses of $13.5 million in connection with its
refinancing activities.  Net income was also impacted by
repositioning expenses of $4 million, comprising $600,000 in
severance costs for further reductions in the size of the
workforce, $900,000 in professional fees relating to a
manufacturing efficiency review process currently underway at
several sites, and $2.4 million in costs relating to work on the
company's strategic review process.

                   Six Months Operating Results

For the six months ended April 30, 2007, the company's revenues
increased 1% to $352.7 million.  The company had a net loss of
$24 million, compared with a net loss of $8.5 million a year ago.

As at April 30, 2007, the company listed total asset of
$833.8 million, total liabilities of $582.1 million, and total
shareholders' equity of $251.7 million.

The company held $46.5 million in cash and cash equivalents at
April 30, 2007, as compared with $50.7 million at Oct. 31, 2006.

"Our European, Canadian and Cincinnati operations continued to
Perform well in the second quarter, achieving on a consolidated
basis an EBITDA margin before repositioning costs of 17%," said
Riccardo Trecroce, chief executive officer, Patheon Inc.

"This performance was moderated by the impact of significant year-
over-year volume declines for two major products manufactured at
our Caguas, Puerto Rico facility," said Mr. Trecroce.  "Returning
our Puerto Rico operations to profitability is a top priority for
the company.  As a first step, we are implementing a plan to
reduce costs in line with reduced revenues."

                       Capital Restructuring

During the second quarter, as previously announced, Patheon
completed its financial restructuring process, with the purchase
of $150 million of convertible preferred shares of the company by
JLL Partners, and the refinancing of its existing North American
and U.K. debt through new credit facilities with J.P. Morgan
Securities and GE Commercial Finance.

"The successful completion of our capital restructuring process
was a major achievement, providing a stable, long-term financial
foundation to grow and operate our business effectively," said
Mr. Trecroce.

                  Update on Strategic Initiatives

"We are making good progress on our Canadian site restructuring
initiative," Mr. Trecroce reported.  "For the Niagara-Burlington
divestiture, we have prepared and issued a confidential
information memorandum to interested parties and expect to
complete the process of identifying potential buyers by the end of
June.  On the York Mills-Whitby consolidation, we are working
closely with our clients and our employees to develop detailed
transfer plans, and have entered into a listing agreement with a
realtor for the sale of the land and facility after the transfers
have been completed."

                             Outlook

Revenues for the third quarter of 2007 are expected to be about
the same as the second quarter of 2007.  The company continues to
expect that revenues from current operations for 2007 will be
comparable to 2006.

                          About Patheon

Patheon Inc. (TSX: PTI) - http://www.patheon.com/ -- provides
drug development and manufacturing services to the international
pharmaceutical companies located primarily in North America,
Europe and Japan. It produces both prescription and over-the-
counter drugs for its clients.  Patheon provides manufacturing
services for a range of products in many dosage forms and
packaging, such as compressed tablets, hard-shell capsules,
liquids and powders filled in ampoules, vials, bottles or pre-
filled syringes. The pharmaceutical development services provided
by Patheon include dosage form development services, scale-up and
technology transfer services, and manufacturing of pilot batches
of drugs.

                        *     *     *

As reported in the Troubled Company Reporter on April 16, 2007,
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Canadian contract drug manufacturer
Patheon Inc.

At the same time, Standard & Poor's assigned its 'BB' bank loan
rating, with a recovery rating of '1', to Patheon's $75 million
ABL revolver and its 'B+' bank loan rating, with a recovery rating
of '3', to the company's $150 million term B facility.  The '1'
recovery rating indicates a full recovery of principal (100%), and
the '3' recovery rating indicates a meaningful recovery of
principal (50%-80%), in a default scenario.  Standard & Poor's
also assigned its 'B-' rating to Patheon's proposed S$150 million
8.5% convertible preferred shares.  The outlook is negative.


PHOTRONICS INC: Earns $14.1 Million for the Quarter Ended April 29
------------------------------------------------------------------
Photronics Inc. reported fiscal 2007 second quarter results for
the period ended April 29, 2007, its net income amounted to
$14.1 million, compared to net income of $5.3 million for the
second quarter of fiscal 2006.  Net income for the second quarter
of 2007 includes a net benefit of $7.9 million relating to the
resolution and settlement of United States and foreign tax
liabilities associated with uncertain tax positions in prior
years.  Net income for the second quarter of 2006 included a
charge of $11.4 million after tax in connection with the company's
previously disclosed restructuring of its operations in North
America.

Sales for the quarter were $109.6 million, compared to
$119.5 million for the second quarter of fiscal year 2006.
Semiconductor photomasks accounted for $88.3 million, or 81% of
revenues during the second quarter of fiscal 2007, while flat
panel display photomasks accounted for $21.3 million, or 19% of
revenues. During the second quarter of fiscal 2006, semiconductor
photomasks accounted for 76% of revenues and FPD photomasks
accounted for 24% of revenues.

                         Half-Year Results

Sales for the first six months of 2007 were $215.6 million,
compared to $231.4 million for the first half of fiscal 2006.
Semiconductor photomasks accounted for $173.9 million, or 81% of
revenues during the first six months of fiscal 2007, while FPD
photomasks accounted for $41.7 million, or 19% of revenues.  Year-
over-year, semiconductor photomask revenues decreased 2%, while
FPD photomask revenues decreased 22.7%.

Net income for the first six months of fiscal 2007 amounted to
$21.9 million, compared to the prior year's first six months net
income of $15 million.

                        Balance Sheet Data

The company recorded $977.3 million in total assets,
$286.7 million in total liabilities, $47.5 million in minority
interest, and $643.2 million as of April 29, 2007.

The company's working capital increased $15.6 million to
$143.2 million at April 29, 2007, as compared to Oct. 29, 2006,
primarily as a result of increased cash generated from operations,
and a decrease in the current portion of long-term borrowings.  At
April 29, 2007, $125 million of the company's outstanding
$150 million, 2.25% convertible subordinated notes due in April of
2008, was reported as long-term in connection with $125 million of
credit available to the company under a five-year, revolving
credit facility agreement entered into on June 6, 2007, with a
group of financial institutions.

Cash, cash equivalents and short-term investments decreased to
$153.7 million at April 29, 2007, as compared to $199.3 million at
Oct. 29, 2006, primarily due to the redemption of $87.1 million of
the remaining outstanding balance of the company's 4.75%
convertible subordinated notes.

A full-text copy of the company's second quarter results is
available for free at http://ResearchArchives.com/t/s?20c6

Michael J. Luttati, chief executive officer commented, "While
performance for the quarter was at the lower end of our guidance
range as a result of industry wide semiconductor and flat panel
market conditions, we are pleased with the progress we made
during the quarter.  Our plans to further penetrate the
semiconductor industry's sub-90 nanometer market are proving
successful, as revenues increased sequentially with an especially
strong performance in Asia.  In flat panel displays, the outlook
is improving after taking nearly a year to work through
fluctuating capacity and end market dynamics.  Our technology
focus was recently rewarded with Photronics having shipped our
first Gen 8 production mask set prior to the quarter's close."

Mr. Luttati concluded, "As we move into the second half of fiscal
2007, we will continue executing against our strategy to increase
share in the advanced semiconductor mask and flat panel markets.
Near-term market volatility aside, we are optimistic that the
company is significantly improving its competitive position."

                      About Photronics, Inc.

Photronics, Inc. -- http://www.photronics.com/-- is a worldwide
manufacturer of photomasks, which are high precision quartz plates
that contain microscopic images of electronic circuits.  A key
element in the manufacture of semiconductors and flat panel
displays, photomasks are used to transfer circuit patterns onto
semiconductor wafers and flat panel substrates during the
fabrication of integrated circuits, a variety of flat panel
displays and, to a lesser extent, other types of electrical and
optical components.  They are produced in accordance with product
designs provided by customers at strategically located
manufacturing facilities in Asia, Europe, and North America.  In
Europe, the company maintains operations in Dresden, Germany and
Manchester, U.K.

                           *     *     *

Photronics Inc. carries Moody's Investors Service's B1 corporate
family rating, B1 probability-of-default rating, and B2 rating on
the company's $190 million 4.75% convertible subordinated notes
due 2006.

The company carries Standard & Poor's BB- Long-term Foreign and
Local Issuer Credit Ratings.


PINNACLE ENTERTAINMENT: Closes $385MM Sr. Notes Private Offering
----------------------------------------------------------------
Pinnacle Entertainment Inc. has closed its private offering of
$385 million aggregate principal amount of new 7-1/2% senior
subordinated notes due 2015.  The notes were issued at a price of
98.525% of par.

The company will use a portion of the net proceeds of the offering
to repay all of its outstanding term loans under its credit
agreement.

In addition, the company will use a portion of the net proceeds of
this offering to purchase $25 million aggregate principal amount
of its 8-1/4% senior subordinated notes due 2012. The company
expects to use the remaining net proceeds from the offering for
general corporate purposes and to provide a portion of the funds
needed for one or more of its capital projects.

The new senior subordinated notes have not be registered under the
Securities Act of 1933 or any state securities laws and may not be
offered or sold in the United States absent registration or an
applicable exemption from registration requirements.

Headquartered in Las Vegas, Nevada, Pinnacle Entertainment Inc.
(NYSE: PNK) -- http://www.pnkinc.com/-- owns and operates casinos
in Nevada, Louisiana, Indiana and Argentina, owns a hotel in
Missouri, receives lease income from two card club casinos in
The Los Angeles metropolitan area, has been licensed to operate
a small casino in the Bahamas, and owns a casino site and has
significant insurance claims related to a hurricane-damaged casino
previously operated in Biloxi, Mississippi.  Pinnacle opened a
major casino resort in Lake Charles, Louisiana in May 2005 and
a new replacement casino in Neuquen, Argentina in July 2005.

                          *     *     *

As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services assigned its 'B-' rating to
Pinnacle Entertainment Inc.'s proposed $350 million senior
subordinated notes due 2015.

On June 1, 2007, the Troubled Company Reporter related that Fitch
Ratings assigned a rating of 'B-/(Recovery Rating) RR5' to the
company's $350 million senior subordinated notes due 2015.  The
company's credit ratings were: (i) Issuer Default Rating of 'B';
(ii) Bank facility at 'BB/RR1'; (iii) Senior Subordinated notes at
'B-/RR5'.  The Rating Outlook is stable.


PLASTICON INT'L: Suspends Share Exchange due to Debt Restructuring
------------------------------------------------------------------
Plasticon International Inc. has postponed its share exchange
program until further notice.  Plasticon has postponed the
exchange in order to allow the company to coordinate its capital
stock reorganization with the restructuring of its debt.

Preparations were made earlier this year for Plasticon to
reorganize its equity structure by offering to its shareholders of
record the opportunity to exchange Common Stock for a newly
created class of Convertible Preferred Stock.

On May 16, 2007, the company filed a Chapter 11 corporate
reorganization proceeding in order to preserve the value of its
subsidiary, Pro Mold Inc., whose assets were in jeopardy.  Chapter
11 allows a company to reorganize while it continues to operate
and grow its business, as opposed to liquidation.

"The board of directors of the company has decided to take
advantage of the opportunity presented by the Chapter 11
proceeding to restructure its capital stock at the same time it
restructures its debt through a plan of reorganization," Jim
Turek, CEO and president of Plasticon International Inc., stated.
The company expects to proceed with the exchange program at a
later date.

Plasticon International disclosed that the company's wholly owned
subsidiary, SEMCO Manufacturing, is in the final stages of
installing flooring in a Lexington, Kentucky, Cadillac and Volvo
dealership.  The project is valued at an estimated $30,000 in
revenue and is expected to be completed in approximately two
weeks.

                  About Plasticon International

Based in Lexington, Kentucky, Plasticon International, Inc.
(PINKSHEETS: PLNI) -- http://www.plasticonintl.com/-- designs,
produces, and distributes high-quality concrete accessories,
informational and directional signage and plastic lumber, which
are all produced from recycled and recyclable plastics.  Plasticon
is an innovator of cutting edge design, engineering, and
production of industrial and commercial products.  Plasticon is a
green company, environmentally friendly, using recycled plastics
to produce its line of products.

Plasticon International and its debtor-affiliate, Pro Mold Inc.,
filed for Chapter 11 protection on May 16, 2007 (Bankr. E.D. Ky.
Case Nos. 07-50934 & 07-50935).  Robert J. Brown, Esq., of Wyatt
Tarrant & Combs LLP represents the Debtors in their restructuring
efforts.  As of Sept. 30, 2006, the Debtors reporter total assets
of $8,156,339 and total debt of $8,965,473.


PORTRAIT CORP: CPI Completes Acquisition of All Operating Assets
----------------------------------------------------------------
CPI Corp. disclosed the completion of its planned acquisition of
substantially all of the operating assets of Portrait Corporation
of America, Inc. and its foreign and domestic affiliates.

With expiration of the requisite pre-merger notice period under
the Hart-Scott-Rodino Antitrust Improvement Act on May 23, 2007
and final approval of the transaction by the United States
Bankruptcy Court for the Southern District of New York on June 4,
2007, the parties were able to consummate the transaction well
ahead of the June 30th deadline established under their definitive
agreement announced on May 2, 2007.

CPI paid a final purchase price of $82.5 million in cash and
assumed certain liabilities by refinancing its credit facilities
with LaSalle Bank, N.A.  The refinancing also closed on June 8,
2007.

As a result of the acquisition, CPI now operates 2,055 portrait
studios in Wal-Mart stores and supercenters in the U.S., Puerto
Rico, Canada, Mexico and the United Kingdom, bringing the
Company's total studio count to 3,095.  CPI is the long-standing
exclusive operator of portrait studios in Sears stores in the U.S.
and Canada.  In their most recently completed fiscal years, the
CPI and PCA studios generated combined sales of $586 million and
served approximately 8.5 million customers.

David Meyer, Chairman of the Board of Directors of CPI, commented,
"We are pleased to welcome PCA's many outstanding associates to
the CPI family.  The combination of the operations of PCA with CPI
creates the clear leader in the portrait studio market, and we
look forward to capitalizing quickly on the complementary
strengths of our two organizations.  We have already begun making
preparations to convert the PCA studios to digital technology and
expect to commence conversions this summer."

Continuing, Mr. Meyer said, "We are excited about the enormous
potential of this combination and are confident that it will
benefit our customers, employees and retail partners as well as
our shareholders."

                             About CPI

CPI Corp. (NYSE: CPY) is the leading portrait studio operator in
North America offering photography services in 3,095 locations in
the United States, Puerto Rico, Canada and Mexico as well as the
United Kingdom, principally in Sears and Wal-Mart stores.

                        About Portrait Corp.

Portrait Corporation of America Inc. -- http://pcaintl.com/--
provides professional portrait photography products and services
in North America.  The Company operates portrait studios within
Wal-Mart stores and Supercenters in the United States, Canada,
Mexico, Germany, and the United Kingdom.  The company also
operates a modular traveling business providing portrait
photography services in additional retail locations and to church
congregations and other institutions.  Portrait Corporation and
its debtor-affiliates filed for Chapter 11 protection on Aug. 31,
2006 (Bankr S.D. N.Y. Case No. 06-22541).  John H. Bae, Esq., at
Cadwalader Wickersham & Taft LLP, represents the Debtors in their
restructuring efforts.  Berenson & Company LLC serves as the
Debtors' Financial Advisor and Investment Banker. Kristopher M.
Hansen, Esq., at Stroock & Stroock & Lavan LLP represents the
Official Committee of Unsecured Creditors.  Peter J. Solomon
Company serves as financial advisor for the Committee.  At June
30, 2006, the Debtor had total assets of $153,205,000 and
liabilities of $372,124,000.  The Court has set July 11, 2007, to
consider confirmation of the Debtor's Amended Chapter 11 Plan of
Reorganization.


PRIMUS TELECOM: Exchanged 6MM Shares for Its $5MM Debentures
-----------------------------------------------------------------
Primus Telecommunications Group, Inc., on June 6, 2007, exchanged
6,000,000 shares of its common stock for $5.0 million principal
amount of its Step Up Convertible Subordinated Debentures due
August 2009.

The common stock was issued pursuant to an exemption under Section
3(a)(9) of the Securities Act of 1933, as amended.

This exchange, and the resulting extinguishment of $5.0 million in
Debentures, reduces the outstanding principal of the Debentures to
$22.5 million.  The company will save approximately $800,000 in
interest to maturity as a result of this extinguishment.

Based in McLean, Virginia, PRIMUS Telecommunications Group Inc.
(NASDAQ: PRTL) -- http://www.primustel.com/-- offers
international and domestic voice, voice-over-Internet protocol,
Internet, wireless, data and hosting services to business and
residential retail customers and other carriers located primarily
in the U.S., Canada, Australia, the U.K. and western Europe.

PRIMUS provides services over its global network of owned and
leased transmission facilities, including about 350 points-of-
presence throughout the world, ownership interests in undersea
fiber optic cable systems, 16 carrier-grade international gateway
and domestic switches, and a variety of operating relationships
that allow it to deliver traffic worldwide.

At March 31, 2007, the company's balance sheet showed total assets
of $432.6 million and total liabilities of $904.8 million,
resulting in a total stockholders' deficit of $472.3 million.


RADNET INC: Hires Ernst & Young as Accountants
----------------------------------------------
RadNet, Inc., on June 7, 2007, engaged Ernst & Young LLP as its
independent registered public accounting firm.

The engagement of Ernst & Young LLP was approved by the Audit
Committee of the company's Board of Directors.

During the years ended October 31, 2006 and 2005, during the
transition period from November 1, 2006 through December 31, 2006,
and from January 1, 2007 through June 7, 2007, the company did not
consult with Ernst & Young LLP with respect to any of the
application of accounting principles to a specified transaction,
either completed or proposed; the type of audit opinion that might
be rendered on the Company's financial statements; or any matter
that was either the subject of a disagreement (as defined in Item
304(a)(1)(iv) of Regulation S-K) or a reportable event of the type
described in Item 304(a)(1)(v) of Regulation S-K.

RadNet Inc. (NasdaqGM:RDNT) -- http://www.radnet.com/-- provides
diagnostic imaging services through the ownership and operation of
freestanding, outpatient diagnostic imaging centers in the United
States.  Its imaging services primarily include magnetic resonance
imaging or MRI, computed tomography or CT, positron emission
tomography or PET, nuclear medicine, mammography, ultrasound,
diagnostic radiology, or X-ray, and fluoroscopy.  It also provides
its services on a contract basis.

At March 31, 2007, the company's balance sheet showed total
stockholders' deficit of $49,429,000, from total assets of
$396,276,000 and total liabilities of $445,705,000.


ROCK-TENN CO: S&P Revises Recovery Rating on $700MM Sr. Facility
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its bank loan rating
and revised its recovery rating on the $700 million senior secured
credit facilities of Rock-Tenn Co. (BB/Stable/--).  The bank loan
rating was affirmed at 'BB', while the recovery rating was revised
to '2' indicating the expectation of substantial (70%-90%)
recovery in the event of a payment default, from '4'.

"The change in recovery rating follows our reassessment of the
collateral and value available to bank lenders in a default
scenario," said Standard & Poor's credit analyst Andy Sookram.

The change also reflects a reduction in the outstanding term loan
balance -- to $231 million as of March 31, 2007, from $250 million
initially.

Ratings List


Rock-Tenn Co.
Corporate Credit Rating         BB/Stable/--

Rating Affirmed; Recovery Rating Revised

Rock-Tenn Co.
                                 To           From
                                 --           ----
$700 Million Senior Secured
  Credit Facilities              BB           BB
   Recovery Rating               2            4


SAKS INC: May Sales Increase to $248.9 Million
----------------------------------------------
Saks Incorporated reported that its owned sales totaled
$248.9 million for the four weeks ended June 2, 2007, compared
to $178.5 million for the four weeks ended May 27, 2006, a 39.4%
increase.  Comparable store sales increased 37.5% for the four-
week period.

As previously disclosed, May comparable store sales were
positively impacted by a promotional calendar shift.  Due to this
shift, management expects that June comparable store sales will be
negative.  The company continues to expect low-double digit
comparable store sales growth for the second fiscal quarter.

For May, the strongest categories at Saks Fifth Avenue stores were
women's designer sportswear and "gold range" apparel, handbags,
women's shoes, and men's shoes and advanced sportswear.  The
softest categories at Saks Fifth Avenue were designer evening,
children's apparel, and fashion jewelry.  Saks Direct and Saks Off
5th also performed well for the month.

On a year-to-date basis, for the four months ended June 2, 2007,
owned sales totaled $1 billion, compared to $854.9 million for the
four months ended May 27, 2006, a 21% increase.  Comparable store
sales increased 19.3% for the four-month period.

                     About Saks Incorporated

Based in Birmingham, Alabama, Saks Incorporated (NYSE: SKS) --
http://www.saksincorporated.com/-- operates Saks Fifth Avenue
Enterprises, which consists of 54 Saks Fifth Avenue stores, 49
Saks Off 5th stores, and Saks.com.  The company also operates 39
Parisian stores and 57 Club Libby Lu specialty stores.

                          *     *     *

As reported in the Troubled Company Reporter on June 1, 2007,
Fitch Ratings has affirmed its Issuer Default Rating of Saks
Incorporated at 'B' and its rating of the company's secured bank
credit facility at 'BB/RR1'.  In addition, Fitch has upgraded the
company's senior unsecured notes to 'B+/RR3' from 'B/RR4'.  The
Rating Outlook has been revised to Stable from Negative.


SAMARITAN HOSPITAL: Trustee Appoints Seven-Member Creditors Panel
-----------------------------------------------------------------
Richard Clippard, the United States Trustee for Region 8, has
appointed seven creditors to serve on an Official Committee of
Unsecured Creditors in Samaritan Alliance LLC dba Samaritan
Hospital and its debtor-affiliates' chapter 11 cases.

Named to the Creditors Committee are:

     (1) Robert Speeney
         Cardinal Health 20, Inc
         Cardinal Health 414 Inc.
         7000 Cardinal Place
         Dublin, OH 43017
         Tel: (614) 553-3125
         Fax: (614) 652-6848

     (2) John Cirigliano
         Agent for HDC Holdings
         135 E. Maxwell St., Suite 302
         Lexington, KY 40508-2622
         Tel: (859) 231-8586
         Fax: (800) 706-2058

     (3) Hope Hurst
         Hurst Office Suppliers Inc.
         257 East Short Street
         Lexington, KY 40507
         Tel: (859) 255-4422
         Fax: (859) 255-4471

     (4) Jeffrey D. Vosel
         Pain Care of Kentucky Inc.
         49 Music Square West, Suite 502
         Nashville, TN 37203
         Tel: (615) 321-5577
         Fax: (615) 321-5566

     (5) Mary Beth Riley, Dave Heist
         Sodexho Inc. & Affiliates
         100 Osceola Road
         Syracuse, NY 13209
         Tel: (315) 487-5908
         Fax: (315) 468-1648

     (6) Donna S. Rossa
         Donna S. Gunter & Assoc. Inc.
         DBA Rossa, Rossa, & Assoc.
         P.O. Box 247
         Reklaw, TX 75784
         Tel: (936) 369-9995
         Fax: (936) 369-4545

     (7) Russell Fichera
         Enducare Therapy Management Inc.
         2950 South Rainbow Boulevard Suite 220
         Las Vegas, NV 89146
         Tel: (702) 248-2840
         Fax: (702) 248-2841

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense.  They may investigate the Debtor's business and financial
affairs.  Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.  Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest.  If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee.  If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.

                    About Samaritan Hospital

Based in Lexington, Kentucky, Samaritan Alliance, L.L.C., dba
Samaritan Hospital, provides a range of health and wellness
services.  The company and its affiliates filed for chapter 11
protection on April 16, 2007 (Bankr. E.D. Ky. Case No. 07-50735).
W. Thomas Bunch, II, Esq., and Thomas Bunch, Sr., Esq., at Bunch &
Brock, represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed total assets of
$21,054,795 and total debts of $25,645,512.


SAMARITAN HOSPITAL: Panel Retains Frost Brown as Counsel
--------------------------------------------------------
The United States Bankruptcy Court for the Eastern District of
Kentucky has granted the request of the Official Committee of
Unsecured Creditors appointed in Samaritan Alliance LLC dba
Samaritan Hospital and its debtor-affiliates' bankruptcy cases to
for authority to retain Frost Brown Todd LLC as its legal counsel.

As counsel, Frost Brown is expected to:

-- advise the Committee with respect to its powers, duties and
    responsibilities in these cases;

-- provide assistance in the Committee's investigation of the
    acts, conduct, assets, liabilities and financial condition of
    the Debtors, the operation of the Debtors' business and
    desirability of the continuance of such business, and any
    other matters relevant to the cases or to the negotiation and
    formulation of a plan;

-- prepare on behalf of the Committee all necessary pleadings
    and other documentation;

-- advise the Committee with respect to the Debtors' formulation
    of a plan(s), the Debtors' proposed plans with respect to the
    prosecution of claims against various third parties and any
    other matters relevant to the cases or to the formulation of
    a plan(s), in these cases;

-- provide assistance, advice and representation, if
    appropriate, with respect to the employment of a Trustee or
    Examiner, should such action become necessary, or any other
    legal decision involving interests represented by the
    Committee;

-- represent the Committee In hearings and proceedings involving
    the Committee; and

-- perform such other legal services as may be necessary and in
    the interest of the creditors and this Committee.

Frost Brown discloses that its professionals bill:

    Professional                  Hourly Rate
    ------------                  -----------
    Members                       $235 - $450
    Associates                    $175 - $230
    Paralegals                    $115 - $135

To the best of the Committee's knowledge, as sworn to by Ronald E.
Gold, Esq., a member of Frost Brown Todd LLC, the law firm does
not hold or represent any interest adverse to the Committee, the
Debtors or the Debtors' estates, and that each of the law firm's
members, counsel and associates is a "disinterested person" as
this is defined under under Sec. 101 (14) of the Bankruptcy Code.

                    About Samaritan Alliance

Based in Lexington, Kentucky, Samaritan Alliance, L.L.C., dba
Samaritan Hospital, provides a range of health and wellness
services.  The company and its affiliates filed for chapter 11
protection on April 16, 2007 (Bankr. E.D. Ky. Case No. 07-50735).
W. Thomas Bunch, II, Esq., and Thomas Bunch, Sr., Esq., at Bunch &
Brock, represent the Debtors.  When the Debtors filed for
protection from their creditors, they listed total assets of
$21,054,795 and total debts of $25,645,512.


SEA CONTAINERS: Court Sets July 16 as Deadline for Filing Claims
----------------------------------------------------------------
The Honorable Kevin J. Carey of the U.S. Bankruptcy Court for the
District of Delaware established July 16, 2007, 5:30 p.m. E.S.T.,
as the deadline for all persons and entities holding or wishing to
assert a claim against Sea Containers, Ltd. and its debtor-
affiliates, to file a proof of claim in their Chapter 11 cases.

Persons or entities who need not file proofs of claim include:

   * any person or entity that already has filed a signed proof
     of claim against the applicable Debtor with either BASIC or
     the Clerk of the Bankruptcy Court for the District of
     Delaware in a form substantially similar to Official
     Bankruptcy Form No. 10;

   * any person or entity who does not dispute its Claim as
     listed on the Debtors' Schedules of Assets and Liabilities;

   * any holder of a claim that previously has been allowed by a
     Court order;

   * any holder of a claim that has been paid in full by any of
     the Debtors in accordance with the Bankruptcy Code or a
     Court order;

   * any holder of a claim for which a specific deadline
     previously has been by the Court;

   * any Debtor asserting a claim against another Debtor;

   * any direct or indirect non-debtor wholly-owned subsidiary of
     a Debtor asserting a claim against a Debtor;

   * any holder of a claim allowable under Section 503(b) and
     507(a)(2) as an expense of administration;

   * any professional retained by the Debtors or Court-approved
     Committees who asserts administrative claims for fees and
     expenses;

   * any current officer or director of any Debtor asserting
     indemnification, contribution or reimbursement claims;

   * any holder of a claim arising with respect to any of
     these issuances of Sea Containers Ltd. public notes:

        -- 10-3/4% notes due October 15, 2006,
        -- 7-7/8% notes due February 15, 2008,
        -- 12-1/2% notes due December 1, 2009,
        -- 10-1/2% notes due May 15, 2012;

   * any individual participant in the Sea Containers 1983 and
     1990 Pension Schemes asserting a claim arising under or in
     respect of those pension plans; and

   * any holder of equity securities of, or other interests in,
     the Debtors solely with respect to that holder's ownership
     interest in or possession of those equity securities or
     other interests.

Proofs of claim forms may be obtained at
http://www.bmcgroup.com/scland http://www.uscourts.gov/bkforms

All proofs of claim must be sent to:

   (Mail)
   BMC Group
   Attn: Sea Containers Claims Agent
   P.O. Box 949
   El Segundo, CA 90245-0949

   (Overnight Courier)
   BMC Group
   Attn: Sea Containers Claims Agent
   1330 East Franklin Avenue
   El Segundo, CA 90245

                       About Sea Containers

Headquartered 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 today, June 12, 2007.


SEMCO ENERGY: S&P Revises CreditWatch to Positive from Developing
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised the CreditWatch
implications for its 'BB-' corporate credit rating on SEMCO Energy
Inc. to positive from developing.

"The rating action reflects further clarity on SEMCO's ultimately
improved financial condition after the acquisition by Cap Rock
Holding Corp.," said Standard & Poor's credit analyst Ralph A.
DeCesare, CFA.

The rating was originally placed on CreditWatch on Feb. 23, 2007,
following the announcement that SEMCO had agreed to be acquired by
Cap Rock for $8.15 per common share.

Cap Rock, through its wholly owned subsidiary Cap Rock Energy, is
engaged in the transmission and distribution of electricity to
about 35,000 customers in 28 counties in Texas.

Cap Rock is ultimately owned by Lindsay Goldberg & Bessemer, a
private equity investment firm headquartered in New York City.


SIERRA HEALTH: S&P Retains Positive Watch on BB+ Credit Rating
---------------------s----------------------------------------
Standard & Poor's Ratings Services said that it is keeping its
'BB+' counterparty credit rating on Sierra Health Services Inc.
(NYSE:SIE) on CreditWatch with positive implications.

On March 12, 2007, UnitedHealth Group Inc. (NYSE:UNH; A/Stable/A-
1) announced its plans to acquire Sierra for $2.6 billion in an
all-cash deal.

"At that time, we put our rating on Sierra on CreditWatch positive
because we viewed this deal as being beneficial to Sierra, and we
continue to do so," said Standard & Poor's credit analyst Joseph
Marinucci.  Sierra will become part of a significantly larger
enterprise with a much stronger business and financial profile.

The transaction, which is subject to numerous regulatory
approvals, is expected to close by the end of 2007.  "Upon
closing, we expect to raise the ratings on Sierra to the same
level as the counterparty credit rating on UNH because we will
view Sierra as core to UNH," Mr. Marinucci added.


STATE BONDING: Case Summary & 13 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: State Bonding Co.
        22 North Delaware Street
        Indianapolis, IN 46204
        Tel: (317) 236-6560

Bankruptcy Case No.: 07-05244

Chapter 11 Petition Date: June 7, 2007

Court: Southern District of Indiana (Indianapolis)

Judge: Basil H. Lorch III

Debtor's Counsel: Julie Z. Schmitt, Esq.
                  Forbes Zellers Association
                  131 East Ohio Street
                  Indianapolis, IN 46204-2128
                  Tel: (317) 631-3100
                  Fax: (317) 631-3300

Estimated Assets: $10,000 to $100,000

Estimated Debts:  $1 Million to $10 Million

Debtor's List of its 13 Largest Unsecured Creditors:

   Entity                      Nature Of Claim        Claim Amount
   ------                      ---------------        ------------
American Contractors           Contingent               $1,593,000
Indemnity Corp.                Forfeiture Liability
823 West Fourth Street
Davenport, IA 52808

Internal Revenue Service       1065 interest & penalty      $1,289
P.O. Box 21126
Philadelphia, PA 19114
                               941 tax, interest and      $612,322
                               penalty, accounts
                               receivables

                               W-2 penalty & interest       $5,200

                               941 penalty & interest       $2,962

                               940 penalty & interest       $1,732

AT&T Yellow Pages                                          $41,469
7144 Lakeview Parkway
West Drive
Indianapolis, IN 46268

Eller Media                                                 $9,000

Yellow Book USA                                             $7,688

Capitol One                                                 $2,798

H&B Enterprises                Parking, 26 N. Delaware      $1,280

Haines & Company                                              $784

AT&T Long Distance                                            $457

Radio America                                                 $445

Natlist Directory                                             $395
Publishing Inc.

Edwards Transmission                                          $378

Info Source Service                                           $100


STEVE SLEPCEVI: Case Summary & 19 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Steve Slepcevi
        431 Via Mesa Grande
        Redondo Beach, CA 90277

Bankruptcy Case No.: 07-14616

Chapter 11 Petition Date: June 5, 2007

Court: Central District Of California (Los Angeles)

Judge: Sheri Bluebond

Debtor's Counsel: Todd B. Becker, Esq.
                  3750 East Anaheim Street, Suite 100
                  Long Beach, CA 90804
                  Tel: (562) 495-1500
                  Fax: (562) 494-8904

Total Assets: $2,323,100

Total Debts:  $2,509,456

Debtor's 19 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Geauxdavri, L.L.C.                                    $300,000
c/o Steve Irving, Esq.
111 Founders Drive,
Suite 700
Baton Rouge, LA 70810

Citibank                                               $72,000
c/o Barry D. Hovis, Esq.
Musick, Peeler & Garrett,
L.L.P.
120 Montgomery Street,
Suite 2550
San Francisco, CA 94104

Mata-Atua McNair                                       $68,000
51 Paso De La Luz
Rancho Palos Verdes, CA 90275

Bank of America                                        $60,000

Goins Aaron                                            $60,000

Trope and Trope                                        $50,000

Harisios Dokas                                         $38,000

Internal Revenue Service                               $36,270

Citibank/Mastercard                                    $32,044

Citi Platinum                                          $28,011

Disaster Tech                                          $26,000

Citi AAdvantage Master                                 $16,687
Card

Apex Systems, Inc.                                     $12,994

Richard Piantadosi                                      $8,000

Citibank, N.A.                                          $4,509

American Express                                        $3,774

Laurel's Fine Furniture                                 $3,200

Clifford Grady                                          $1,200

Washington Mutual Bank                                  $1,000


SURGILIGHT INC: March 31 Balance Sheet Upside-Down by $625,891
--------------------------------------------------------------
SurgiLight Inc. reported a net loss of $137,258 on revenue of
$119,000 for the first quarter ended March 31, 2007, compared with
a net loss of $294,845 on zero revenue for the same period in
2006.

Equipment sales for the quarter ended March 31, 2007, increased to
$119,000 from $0 during the quarter ended March 31, 2006.  The
2007 quarter revenue increase was due to the company continuing to
develop its international sales and marketing activities,
especially in the European Community where it received CE approval
during February 2005.

At March 31, 2007, the company's balance sheet showed $4,895,810
in total assets, $5,521,701 in total liabilities, resulting in a
$625,891 total stockholders' deficit.

The company's balance sheet at March 31, 2007, also showed
strained liquidity with $694,509 in total current assets available
to pay $5,521,701 in total current liabilities.

Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available for
free at http://researcharchives.com/t/s?20ca

                      Going Concern Doubt

Richard L. Brown & Company P.A., in Tampa, Florida, expressed
substantial doubt about SurgiLight Inc.'s ability to continue as a
going concern after auditing the company's consolidated financial
statements for the years ended Dec. 31, 2006, and 2005.  The
auditing firm pointed to the company's losses from operations and
net capital deficiency.

                     About SurgiLight Inc.

Headquartered in Orlando, Florida. SurgiLight Inc. (Other OTC:
SRGL.PK) -- http://www.surgilight.com/index.html-- distributes
ophthalmic lasers and related products and services based on its
own and licensed intellectual property, primarily for use in
refractive and presbyopia procedures.


THOMAS WILSON: Case Summary & 17 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Thomas Clay Wilson
        10400 Royal Birkdale Northeast
        Albuquerque, NM 87111

Bankruptcy Case No.: 07-11361

Chapter 11 Petition Date: June 7, 2007

Court: District of New Mexico (Albuquerque)

Judge: James S. Starzynski

Debtor's Counsel: William F. Davis, Esq.
                  William F. Davis & Associates, P.C.
                  P.O. Box 6
                  Albuquerque, NM 87103-0006
                  Tel: (505) 243-6129

Estimated Assets: $1 Million to $100 Million

Estimated Debts:  $1 Million to $100 Million

Debtor's List of its 17 Largest Unsecured Creditors:

   Entity                                  Claim Amount
   ------                                  ------------
Spring Creek Data Centers LLC                $5,700,000
23930 Northeast Glisan
Gresham, OR 97030

Cypress Estates L.P.                         $4,600,000
c/o Allan L. Knighton, Esq.
3240-D Juan Tabo Northeast
Albuquerque, NM 87111

Pearlmutter                                  $1,500,000
500 Third Avenue, Suite 1201
New York, NY 10158

Community Guaranty Savings                      $24,281

Presbyterian Hospital                           $13,000

New Mexico Heart Institute                      $13,000

Lovelace                                        $13,000

Cuatro Primos Ltd. Liability Co.                 $8,890

Franchise Tax Board                              $1,757

NH Northeast CR Services                         $1,359

IC System Inc.                                   $1,654

Rentoncoll                                         $954

The Thomas Agency Inc.                             $822

CBCS                                               $800

Evergreen Professional                             $726

CMRE Financial Services                            $706

Professional Adjmnt. Co.                           $875


TLC VISION: Moody's Assigns Corporate Family Rating at B1
---------------------------------------------------------
Moody's Investors Service assigned a B1 (LGD3/31%) rating to TLC
Vision Corporation's $25 million senior secured revolver due 2012
and $85 million senior secured term loan due 2013.

Proceeds from the credit facilities will be used to support
the company's recently announced share repurchase auction, fund
working capital and general corporate purposes.

Concurrently, Moody's assigned a B1 corporate family rating, B2
probability of default rating, SGL-2 speculative grade liquidity
rating, and a stable ratings outlook.

The B1 Corporate Family Rating considers the highly leveraged
position, modest size and concentration within the refractive lens
market.

"Pro forma for the increased debt resulting from the new credit
facility, the company's adjusted debt to EBITDA was 5.5 times for
the twelve months ended March 31, 2007", said Sidney Matti,
Analyst at Moody's.  "Moody's expects that the company's adjusted
debt to EBITDA will decline to 5 times which would place the
company within the B1 rating category", Matti further states.

For the 12 months ended March 31, 2007, the company generated
approximately $287 million in revenues, which Moody's anticipates
will slightly grow in the next few years. Of the company's total
revenues for the most recent twelve months ended March 31, 2007,
the refractive segment generated approximately 70% of the
consolidated revenues.  Over the past few years, the company's
refractive segment has been the main revenue
generator of TLC Vision.  Moody's anticipates that this will
continue over the near term as the centers are revamped with a new
marketing strategy.

The Corporate Family Rating acknowledges TLC Vision's strong
competitive position within the highly fragmented refractive
market and stable cash flow generation.  Pro forma for the
additional debt, the company's free cash flow to adjusted debt was
approximately 6% at Dec. 31, 2006, which Moody's expects to remain
above 5% over the intermediate term.  That would compare favorably
to other B1 rated companies.  TLC Vision is currently the leading
company within the refractive industry.  Over 50%
of the market is currently serviced by independent surgeons with
the corporate market controlling less than 30% of the entire
refractive industry.

The stable ratings outlook anticipates the refractive market will
continue to grow over the intermediate term primarily driven by
the acceptance of LASIK surgery as an alternative to other eyecare
products (e.g. eyeglasses, contact lenses).  With its significant
position within the LASIK surgery market, TLC Vision should
benefit from this growth.  The outlook also considers that the
company will not engage in a material debt
financed acquisition or additional shareholder friendly activities
over the ratings horizon.

The SGL-2 rating recognizes that over the next twelve months ended
March 31, 2008, Moody's expects TLC Vision to generate cash flow
from operations sufficient to cover the company's capital spending
needs.  Additionally, the company is expected to have full
availability under the proposed $25 million revolving credit
facility.

These ratings were assigned:

   -- B1 Corporate Family Rating;

   -- B2 Probability of Default Rating;

   -- SGL-2 Speculative Grade Liquidity Rating;

   -- B1 (LGD3/31%) rating on $25 million Senior Secured
      Revolver due 2012; and

   -- B1 (LGD3/31%) rating on $85 million Senior Secured Term
      Loan due 2013.

Headquartered in Missississauga, Ontario, Canada, TLC Vision
Corporation is a diversified eye care services company with a
majority of the company's revenues generated from laser refractive
surgery, which involves an excimer laser to treat common
refractive vision disorders such as myopia (nearsightedness),
hyperopia (farsightedness) and astigmatism. For the 12 months
ended March 31, 2007, the company generated
approximately $287 million in revenues.


TLC VISION: S&P Places Corporate Credit Rating at B
---------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B'
corporate credit rating to St. Louis, Missouri-based TLC Vision
Corp.

The outlook is positive.

At the same time, S&P assigned loan and recovery ratings to TLC
Vision (USA) Corp.'s $110 million secured financing.  The debt,
which consists of a $25 million revolving credit facility (five-
year maturity) and an $85 million term loan B (six-year maturity)
is rated 'BB-' (two notches higher than the corporate credit
rating on TLCV) with a recovery rating of '1', indicating
expectations for very high (90%-100%) recovery in the event of a
default.  TLC Vision (USA) is a wholly owned subsidiary of TLCV,
the guarantor of the debt.

"Proceeds of the financing will be used, in combination with cash
on hand, to fund the repurchase of up to 20 million shares of
outstanding stock," explained Standard & Poor's credit analyst
Cheryl Richer.

The rating on TLCV reflects its concentration in laser vision
correction.  As a corporate provider, TLCV competes with private
practice ophthalmologists and hospitals, which together perform
about 60% of U.S. refractive surgery procedures.

In addition, consumers have less invasive and less expensive
options for vision correction, such as eyeglasses and contact
lenses.  Furthermore, refractive surgery has exhibited slower-
than-anticipated growth, with several years of flat demand, since
its inception 17 years ago; refractive surgery is used for less
than 4% of vision correction.  These risks are offset by
improvements in the technology, which may increase demand; rising
cost of the equipment, which encourages surgeons to perform
surgeries at TLCV centers; the necessity of a growing and aging
population for vision care services; and TLCV's leading position
in this fragmented market.  The company's financial risk profile
is commensurate with the rating.


TWEETER HOME: Files for Chapter 11 Protection in Delaware
---------------------------------------------------------
Tweeter Home Entertainment Group, Inc., disclosed that to address
its financial challenges and support its ongoing efforts to evolve
its home installation and services business model, the company and
seven of its affiliates, on June 11, 2007, filed voluntary
petitions for reorganization under Chapter 11 of the United States
Bankruptcy Code with the U.S. Bankruptcy Court for the District of
Delaware.

Tweeter has taken this action after determining that a Chapter 11
reorganization is in the best long-term interest of the Company,
its employees, customers, creditors, business partners and other
stakeholders.

Tweeter also announced that it has secured a $60 million secured
debtor-in-possession credit facility provided by General Electric
Capital Corporation.

Tweeter, through a first day motion, will seek immediate authority
to access that post-petition credit facility.  Tweeter intends to
use the post-petition liquidity to purchase merchandise, pay
employee salaries and benefits and for other general corporate
purposes.

In conjunction with the filing of its bankruptcy petition, the
company filed a variety of "first day motions" :

    * to support its employees, vendors, customers and other
      stakeholders;

    * to obtain interim financing authority and maintain existing
      cash management programs;

    * to retain legal, financial and other professionals;

    * to support the company's reorganization case; and

    * other relief.

Tweeter expects to continue normal business operations today and
throughout the reorganization process.  Specifically, it expects
to:

    -- Keep all previously designated stores open for business as
       usual;

    -- Honor its customer service policies such as returns,
       exchanges, credits and layaway programs at each store
       location;

    -- Pay vendors, suppliers and other business partners for
       goods and services provided post-petition; and,

    -- Continue to pay employee wages and salaries, offering the
       same medical, dental, life insurance, disability and other
       benefits and to accrue vacation and discretionary time
       without interruption.

"After considering a wide range of alternatives, it became clear
that this course of action was a necessary and responsible step
toward preserving Tweeter's viability as we address our financial
challenges and work to secure our future," said Tweeter President
and CEO Joe McGuire.  "I am confident that, with our tremendous
talent pool of the best-trained, most knowledgeable sales and
installation teams in the business, we will emerge from this
process as a stronger, more competitive organization that is well-
positioned to respond to and succeed in the ever-changing consumer
electronics industry."

                       About Tweeter Home

Based in Canton, Massachusetts, Tweeter Home Entertainment Group,
Inc. (NASDAQ: TWTR) -- http://www.tweeter.com/-- is a specialty
consumer electronics retailer providing home and mobile
entertainment solutions.  The company operates 130 stores under
the Tweeter, hifi buys, Sound Advice and Showcase Home
Entertainment names.  The company's stores are located in the
following markets: New England, the Mid-Atlantic, Chicago, the
Southeast (including Florida), Texas, Phoenix and Las Vegas.


TWEETER HOME: Case Summary & 30 Largest Unsecured Creditors
-----------------------------------------------------------
Lead Debtor: Tweeter Home Entertainment Group, Inc.
             40 Pequot Way
             Canton, MA 02021

Bankruptcy Case No.: 07-10787

Debtor affiliates filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        Sound Advice of Arizona, Inc.              07-10788
        New England Co., Inc.                      07-10789
        N.E.A. Delaware, Inc.                      07-10790
        Hillcrest High Fidelity, Inc.              07-10792
        Sound Advice, Inc.                         07-10793
        Sumarc Electronics, Inc.                   07-10795
        T.H.E.G. U.S.A., L.P.                      07-10796

Type of Business: The Debtor retails mid-to high-end audio and
                  video consumer electronics products.  See
                  http://www.tweeter.com/

Chapter 11 Petition Date: June 11, 2007

Court: District of Delaware (Delaware)

Judge: Peter J. Walsh

Debtors' Counsel: Gregg M. Galardi, Esq.
                  Mark L. Desgrosseilliers, Esq.
                  Skadden, Arps, Slate, Meagher & Flom, L.L.P.
                  One Rodney Square
                  Wilmington, DE 19899
                  Tel: (302) 651-3000
                  Fax: (302) 651-3001

Financial condition as of Dec. 21, 2006:

Total Assets: $258,573,353

Total Debts:  $190,417,285

Debtors' Consolidated List of 30 Largest Unsecured Creditors:

Entity                      Nature of Claim       Claim Amount
------                      ---------------       ------------
Polk Audio, Inc.            trade                   $1,245,168
P.O. Box Box 826162
Philadelphia, PA
19182-6162
Fax: (800) 638-7276

Sap America, Inc.           trade                     $745,573
P.O. Box Box 7780-82
Philadelphia, PA
19182-4024
Tel: (610) 661-100
Fax: (610) 661-4020

Zurich American Insurance                             $743,294
8734 Paysphere Circle
Chicago, IL 60674
Tel: (800) 382-2150
Fax: (312) 496-9112

Audioquest                  trade                     $536,981
P.O. Box Box 7780-82
Philadelphia, PA
19182-4024
Tel: (610) 661-100
Fax: (610) 661-4020

Service Net Solution        trade                     $514,499
650 Missouri Avenue
Jeffersonville, IN 47130
c/o Attention: Kendall
Beaven
650 Missouri Avenue
Jeffersonville, IN 47130
Tel: (812) 258-4700
Fax: (812) 258-4765

Bose Corporation            trade                     $472,410
P.O. Box Box 93132
Chicago, IL 60661
Tel: (508) 766-9286
Fax: (508) 766-9611

Omnimount Systems           trade                     $388,244
P.O. Box Box 201570
Dallas, TX 75320-1570
Tel: (480) 829-8000
Fax: (480) 756-9000

Flatiron Capital Corp.      trade                     $364,816
P.O. Box Box 27802
Newark, NJ 07101-7802
Tel: (303) 571-1711
Fax: (303) 352-0096

Scott Thomas Construction   trade                     $346,633
201 Packets Court
Williamsburg, VA 23185
c/o Attention: National
General Contractor
201 Packets Court
Williamsburg, VA 23185
Tel: (757) 564-3455
Fax: (757) 564-3661

Universal Remote Control    trade                     $333,513
500 Mamaroneck Avenue
Harrison, NY 10528
Tel: (914) 835-4484
Fax: (914) 835-4532

DirecTV                     trade                     $326,524
2230 East Imperial
Highway
El Segundo, CA 90245
Tel: (310) 535-5000
Fax: (310) 535-5225

J.L. Audio                  trade                     $301,460
P.O. Box 550022
Tampa, FL 33655-0022
Tel: (954) 624-0114
Fax: (954) 443-1104

Martin Logan                trade                     $276,106
P.O. Box 875712
Kansas City, MO
64187-5712
Tel: (785) 749-0133
Fax: (785) 749-5320

Mitek                       trade                     $273,495
1 Mitek Plaza
Winslow, IL 61089
Tel: (815) 367-3000
Fax: (815) 367-2709

Pioneer Electronics         trade                     $264,742
P.O. Box 70566
Chicago, IL 60673-0566
c/o Attention: Marlene
P.O. Box 70566
Chicago, IL 60673-0566
Tel: (310) 952-2395
Fax: (310) 952-2923

W.F.L.D.-T.V.               trade                     $263,895
W.F.L.D. Fox Television
Stations
P.O. Box 91427
Chicago, IL 60673
Tel: (312) 565-5599
Fax: (310) 819-0421

Blitz Media Inc.            trade                     $225,020

Audio Plus Services         trade                     $221,228

Universal Millennium        trade                     $220,816

Garmin International        trade                     $211,303

W.B.Z. T.V.                 trade                     $208,789

PriceWaterhouseCoopers,     trade                     $206,279
L.L.P.

Coastal Pacific             trade                     $205,675
Construction

M.C.M. Electronics          trade                     $191,361

C.N.B.C.-N.C.C.             trade                     $177,167

Harte Hanks                 trade                     $172,936

The Atlanta Journal-        trade                     $160,526
Constitution

W.U.S.A.                    trade                     $156,807

Tivo Digital Video R        trade                     $155,565

K.D.F.W. FOX 4              trade                     $155,389


W&T OFFSHORE: Prices $450 Million 8.25% Senior Notes Offering
-------------------------------------------------------------
W&T Offshore Inc. has priced approximately $450 million of its
8.25% senior notes due 2014.  The interest payment dates on the
Notes are June 15 and December 15, with interest payments
commencing on Dec. 15, 2007.

The Notes are scheduled to mature on June 15, 2014.  The sale of
the Notes is expected to close on Wednesday, June 13, 2007.  The
proceeds of the offering will be used to repay borrowings under
the company's credit agreement.

The Notes have not been and will not be registered under the
Securities Act of 1933, as amended, and are being offered and sold
in the United States only to qualified institutional buyers in
reliance on Rule 144A under the Act and to certain non-U.S.
persons in transactions outside the United States in reliance on
Regulation S under the Act.

W&T Offshore Inc. -- http://www.wtoffshore.com-- is an
independent oil and natural gas company focused primarily in the
Gulf of Mexico, including exploration in the deepwater and deep
shelf regions.

                           *     *     *

As reported in the Troubled Company Reporter on June 7, 2007,
Moody's assigned a B3 rating (LGD5; 76%) to W&T Offshore Inc.'s
pending $450 million senior unsecured note offering and affirmed
the company's B2 corporate family rating.


WERNER LADDER: Completes Sale of All Assets to Investor Group
-------------------------------------------------------------
Werner Holding Co. (DE) Inc. aka Werner Ladder Company and its
debtor-affiliates yesterday said that the sale of substantially
all of its assets to a group of the company's investors was
completed.

This sale transaction, approved by the United States Bankruptcy
Court for the District of Delaware on April 25, 2007, allows
Werner's ladder business to successfully emerge from bankruptcy
and continue its operational turnaround.

The new Werner company is now owned by a group of investors
including Black Diamond Capital Management LLC, Brencourt Advisors
LLC, Levine Leichtman Capital Partners III, L.P., Milk Street
Investors LLC, Schultze Asset Management LLC, and TCW Shared
Opportunity Funds.

James J. Loughlin, Jr., Werner's interim Chief Executive Officer,
said, "We are very pleased that this transaction has closed and
Werner will successfully emerge from bankruptcy.  The new Werner
will continue to operate its business of making and selling the
country's best ladders.  We have substantially reduced our debt as
over $300 million of liabilities have been extinguished.  Werner
will benefit from improved liquidity that will allow the company
to serve its customers, complete its operational restructuring and
continue to improve sales and profitability."

Mr. Loughlin added, "Werner is well positioned for future success.
We have reduced our operating costs while continuing to improve
and expand our product offerings and we are well on our way to
becoming the most profitable ladder manufacturer.  The company's
new products continue to win awards for innovation while serving
unfilled needs in the climbing product marketplace.  The
management and employees of Werner are committed to serving our
customers and teaming with our suppliers and other business
partners to remain the leader in each of our product segments."

                    About Black Diamond

Founded in 1995, Black Diamond Capital Management, L.L.C. is an
alternative asset management firm with approximately $10 billion
under management in a combination of distressed-debt/private
equity funds, hedge funds and structured vehicles.  Black Diamond
has offices in Greenwich, Connecticut, Lake Forest, Illinois and
London, U.K.

                     About Brencourt Advisors

Brencourt Advisors, LLC was formed in 2001 as a registered
investment advisor to various alternative investment funds.
Brencourt currently manages approximately $2 billion in assets and
has offices in both New York and London, U.K.

                  About Levine Leichtman Capital

Levine Leichtman Capital Partners -- http://www.llcp.com/-- is a
Los Angeles, California private equity firm that was founded in
1984 by Arthur E. Levine and Lauren B. Leichtman.  The firm
manages in excess of $2.0 billion of institutional investment
capital through private equity partnerships.  LLCP has a highly
differentiated, multi-fund investment strategy focused on
companies with revenues less than $500 million.

                      About Schultze Asset

Founded in 1998, Schultze Asset Management, LLC --
http://www.samco.net/-- is a leading alternative investments firm
specializing in distressed and special situations investing.  The
firm manages approximately $750 million in assets on behalf of
institutional and high net worth clients located throughout the
world.  Schultze's offices are in Purchase, New York.

                        About TCW Shared

The TCW Shared Opportunity Funds have invested over $1 billion in
distressed middle market companies during the past 15 years and
are affiliated with Trust Company of the West.  Founded in 1971,
TCW develops and manages a broad range of innovative, value-added
investment products that strive to enhance and protect clients'
wealth.  The firm has approximately $160 billion in assets under
management.  TCW is a subsidiary of Societe Generale Asset
Management, which has approximately $500 billion under management
and is a division of Societe Generale Group.

                    About Werner Holding Co.

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

The Debtors are represented by the firm of Willkie Farr &
Gallagher LLP as lead counsel and the firm of Young, Conaway,
Stargatt & Taylor LLP as co-counsel.  Rothschild Inc. is the
Debtors' financial advisor.  The Official Committee of Unsecured
Creditors is represented by the firm of Winston & Strawn LLP as
lead counsel and the firm of Greenberg Traurig LLP as co-counsel.
Jefferies & Company serves as the Creditor Committee's financial
advisor.  At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000.


* Bingham Issues Opinion on Directors' Fiduciary Duty Dispute
-------------------------------------------------------------
Bingham McCutchen LLP has released an opinion on a long standing
dispute in the restructuring arena, concerning whether or not
creditors of an insolvent company have the standing to assert
direct claims against directors for breaches of fiduciary duty.

                            Background

Bingham McCutchen relates that, sixteen years ago, the Delaware
Chancery Court roiled America's boardrooms, and intrigued
creditors with a single footnote - suggesting in the famous Credit
Lyonnais case that when Delaware corporations reach the "vicinity
of insolvency" -- which is often called the "zone of insolvency" -
- the fiduciary duties of their directors might expand to embrace
the corporation's creditors.  The firm said that footnote spawned
mountains of confusing analysis, case law, and advice, and,
despite the fact that no Delaware court had ever so held, led to
acceptance by many of the proposition that a director of a
Delaware corporation that is "in the vicinity of insolvency" does
indeed owe fiduciary duties directly to creditors.

On May 18, 2007, the Delaware Supreme Court surprised many
creditors and rejected that proposition, ruling in the case of
North American Catholic Educational Programming Foundation, Inc.
v. Gheewalla, that a creditor of a Delaware corporation never has
standing to assert a direct claim against individual directors for
breach of fiduciary duty, relates the firm.

                             Analysis

The firm confirmed that the North American Catholic opinion makes
clear that creditors of Delaware corporations must look for
protection to remedies other than direct claims against directors
for breach of fiduciary duty.  When the facts warrant, creditors
injured by corporate action may bring nonfiduciary claims (for
example, claims based upon breach of contract, breach of the
implied covenants of good faith and fair dealing, or fraudulent
conveyance).

In addition, although there are significant procedural hurdles to
overcome, derivative actions remain.

The North American Catholic opinion makes clear that regardless of
whether a Delaware corporation is solvent, in the so-called "zone"
or "vicinity" of insolvency or clearly insolvent, the directors
owe both the corporation and its stockholders fiduciary duties of
care and loyalty.  When a corporation is solvent, the stockholders
are the only beneficiaries of those duties and, depending on the
nature of their injury, can sue derivatively or directly to
enforce those duties.  However, when the corporation is insolvent,
the creditors of the corporation acquire standing and, in addition
to the stockholders, can sue derivatively to enforce those duties,
explains the firm.

                             Impact

The firm contends that the practical impact of the North American
Catholic decision will be worked out both "on the ground" and in
lower court decisions, but it certainly changes the landscape for
potential creditor actions based on insolvency and breach of
director duty.  The firm notes the following:

   1) As a practical matter a director's worry about incurring
      personal liability for damages as a result of a claim by a
      creditor should be greatly diminished.  After North American
      Catholic, direct claims by creditors against individual
      directors for breach of fiduciary duty will be virtually
      impossible.  Further, the combination of the business
      judgment rule and the presence of exculpatory provisions in
      the certificates of incorporation of nearly every Delaware
      corporation means that personal liability of a director for
      derivative claims by creditors based on breach of the duty
      of care are highly unlikely.  Thus the principal remaining
      risk of personal liability for directors at the instigation
      of creditors should be in the event of a derivative claim
      based on breach of the duty of loyalty -- i.e., self dealing
      or bad faith -- which can be procedurally difficult to
      maintain, or in the case of an unlawful dividend or stock
      repurchase.

   2) As a result, from the point of view of the directors of a
      distressed Delaware corporation, the decision may lead to a
      shift in emphasis, from one of considering the interests of
      creditors as more significant, to one in which the interests
      of stockholders in higher-risk business strategies assume
      greater importance.

   3) Nevertheless, the "shot across the bow" letter sometimes
      fired off by creditors' counsel to directors will still have
      its place, but the content must bend in light of North
      American Catholic.  Creditors may still threaten derivative
      claims for breach of duty of care or duty of loyalty, and
      may also raise legal challenges to directors' decisions
      based on nonfiduciary theories.  Further, the firm thinks
      that a Delaware director would be well advised to consider
      outcomes for all constituencies, including creditors, when
      weighing corporate actions in the face of insolvency.  A
      wise director will want to minimize the threat of a lawsuit,
      whether it is "direct" or "derivative."

   4) Bankruptcy itself may feel the impact.  Directors of Chapter
      11 debtors may feel more constrained to support, for
      example, efforts to form and negotiate with equity
      committees.

The firm settles that the North American Catholic decision is an
important development of Delaware law, and a setback to a theory
accepted by many in practice of direct director duties to
creditors of an insolvent corporation.  It changes the playing
field for lawsuit tactics and remedies for creditors against
individual directors.  The firm tells that a derivative claim by a
creditor, a bankruptcy estate or a trustee is no trifling matter,
so directors still need to be circumspect, and creditors need not
abandon faith as a result of North American Catholic.

                     About Bingham McCutchen

Based in Walnut Creek, Calfornia, Bingham McCutchen LLP --
http://www.bingham.com/-- is an international law firm with 13
offices on three continents.  The firm is focused on serving
clients in complex financial transactions, a wide variety of
sophisticated corporate and technology matters, and high-stakes
litigation.


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                                Total
                                Shareholders  Total     Working
                                Equity        Assets    Capital
  Company               Ticker  ($MM)          ($MM)     ($MM)
  -------               ------  ------------  -------  --------
Abraxas Petro           ABP         (22)         118       (4)
AFC Enterprises         AFCE        (25)         162        4
Alaska Comm Sys         ALSK        (29)         551       19
Alliance Imaging        AIQ          (4)         678       50
Bare Escentuals         BARE       (189)         184       91
Blount International    BLT         (98)         448      135
CableVision System      CVC      (5,349)       9,654     (638)
Calpine Corp            CPNLQ    (7,348)      18,594   (3,055)
Carrols Restaurant      TAST        (24)         453      (28)
Cell Therapeutic        CTIC       (101)          94       24
Centennial Comm         CYCL     (1,090)       1,393       92
Charter Comm            CHTR     (6,345)      15,177   (1,015)
Cheniere Energy         CQP        (168)       2,104      108
Choice Hotels           CHH         (70)         305      (55)
Cincinnati Bell         CBB        (773)       1,951       27
Claymont Stell          PLTE        (50)         150       67
Compass Minerals        CMP         (46)         691      157
Corel Corp.             CRE         (21)         271      (42)
Crown Holdings          CCK        (225)       6,582      310
Crown Media HL          CRWN       (519)         759       64
CV Therapeutics         CVTX        (90)         356      263
Dayton Superior         DSUP       (106)         312       60
Deluxe Corp             DLX         (40)       1,223     (402)
Denny's Corporation     DENN       (221)         444      (67)
Depomed Inc.            DEPO        (37)          37       16
Domino's Pizza          DPZ        (561)         421       39
Dun & Bradstreet        DNB        (458)       1,392     (238)
Echostar Comm           DISH        (30)       9,066    1,150
Eisntein Noah Re        BAGL       (131)         135       (9)
Embarq Corp             EQ         (331)       8,983     (409)
Emeritus Corp.          ESC        (112)         953      (55)
Empire Resorts I        NYNY        (10)          71       12
Encysive Pharmaceutical ENCY       (122)          87       52
Enzon Pharmaceutical    ENZN        (55)         369      180
Epix Pharmaceutical     EPIX        (51)         112       39
Extendicare Real        EXE-U       (20)       1,316       29
Foamex Intl             FMXI       (272)         579      150
Ford Motor Co           F        (3,447)     281,491   (8,138)
Gencorp Inc.            GY          (65)       1,037       31
General Motors          GM       (3,202)     185,198   (5,059)
Graftech International  GTI         (86)         772      241
Healthsouth Corp.       HLS      (1,602)       3,238     (398)
I2 Technologies         ITWO        (15)         185       32
ICOS Corp               ICOS        (18)         285      112
IDEARC Inc              IAR      (8,755)       1,508      171
IMAX Corp               IMX         (33)         243       84
Incyte Corp.            INCY       (104)         325      261
Indevus Pharma          IDEV       (144)          76       36
Intermune Inc           ITMN        (55)         249      195
Isolagen Inc            ILE         (48)          49       21
Ista Pharmaceuticals    ISTA        (15)          48       18
Jazz Pharmaceuticals    JAZZ       (195)         201       47
Koppers Holdings        KOP         (70)         671      177
Life Sciences           LSR          (1)         237       25
Lodgenet Entertainment  LNET        (54)         274        8
McMoran Exploration     MMR         (47)         446      (31)
Mediacom Comm           MCCC       (110)       3,620     (269)
National Cinemed        NCMI       (585)         401       43
Neurochem Inc            NRM        (34)          61       20
New River Pharma        NRPH       (110)         152      (19)
Nexstar Broadcasting    NXST        (80)         709       23
NPS Pharm Inc.          NPSP       (213)         180     (219)
ON Semiconductor        ONNN       (138)       1,441      309
Protection One          PONN        (85)         441       (1)
Qwest Communication     Q        (1,534)      20,701   (1,440)
Radnet Inc.             RDNT        (48)         396       31
Ram Energy Resources    RAME         (2)         184       (6)
Regal Entertainment     RGC        (130)       3,085     (131)
Riviera Holdings        RIV         (28)         221       13
RSC Holdings Inc        RRR        (408)       3,281   (3,410)
Rural Cellular          RCCC       (587)       1,362      183
Rural/Metro Corp.       RURL        (93)         298       38
Savvis Inc.             SVVS        (14)         640      145
Sealy Corp.             ZZ         (154)       1,021       61
Senorx Inc              SENO         (4)          16        2
Sipex Corp              SIPX        (12)          53        7
St. John Knits Inc.     SJKI        (52)         213       80
Station Casinos         STN        (178)       3,694      (46)
Stelco Inc              STE         (83)       2,788      656
Sun-Times Media         SVN        (369)         929     (265)
Suncom Wire-CL          SCWH       (433)       1,639      209
TechTarget              TTGT        (66)          94       31
Town Sports Int.        CLUB        (20)         436      (52)
Unisys Corp.            UIS          (5)       3,913      317
Weight Watchers         WTW      (1,053)       1,019      (82)
Western Union           WU         (172)       5,354      972
Westmoreland Coal       WLB        (108)         759      (55)
Worldspace Inc.         WRSP     (1,641)         527       85
WR Grace & Co.          GRA        (467)       3,628      912
XM Satellite            XMSR       (445)        1943      (76)
Xoma Ltd.               XOMA         (6)          70       28

                             *********

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,
Tara Marie A. Martin, John Paul C. Canonigo, Sheena Jusay, 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 ***