/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070719.mbx T R O U B L E D C O M P A N Y R E P O R T E R Thursday, July 19, 2007, Vol. 11, No. 169 Headlines 534 LAS AMERICAS: Taps Johnson Law Firm as Bankruptcy Counsel ABC LOCK: Case Summary & 20 Largest Unsecured Creditors ALION SCIENCE: Increased Debt Leverage Cues S&P's Negative Outlook AMERICHIP INT'L: May 31 Balance Sheet Upside-down by $788,703 BANK OF AMERICA: Fitch Affirms B- Rating on $5.7MM Class P Certs. BASELL AF: Inks Pact to Acquire Lyondell for $19 Billion in Cash BASELL AF: Fitch Puts Low-B Ratings on Watch Negative BCAP LLC: Moody's Reviews Class M-9's Ba1 Rating and may Downgrade BCE INC: Buyer Obtains $500 Million Bridge Fund from TD Bank BEAR STEARNS: Moody's Reviews Ratings on 13 Tranches BEST MANUFACTURING: Trustee Hires Sobel as Forensic Accountants CARDTRONICS INC: Prices $100 Million Senior Notes Offering CASA PALMS: Case Summary & Largest Unsecured Creditor CCS MEDICAL: Moody's Rates Planned $365 Million Term Loan at (P)B3 CHAMPION ENT: Net Income Down to $7.5MM in Quarter Ended June 30 CITIGROUP COMMERCIAL: Fitch Cuts Rating on Class M Certs. to B CLADDAGH DEVELOPMENT: Trustee Taps George Fels as Accountant COMMONWEALTH HOLDINGS: Case Summary & Five Largest Creditors COMMUNITY HEALTH: Fitch Junks Rating on $9.1 Bil. Unsecured Notes COMPUCOM SYSTEMS: Moody's Assigns Corporate Family Rating at B2 COMPUCOM SYSTEMS: S&P Affirms B+ Rating and Removes CreditWatch CONSUMER PORTFOLIO: Earns $3.5 Mil. in Second Qtr. Ended June 30 CREDIT SUISSE: Moody's Puts Low-B Ratings on Two Cert. Classes CRUM & FORSTER: Moody's Reviews Ba3 Senior Unsecured Debt Rating CWABS ASSET: Moody's Reviews Ratings on 33 Tranches DEERFIELD TRIARC: Closes $300 Mil. Collateralized Loan Transaction DELPHI CORP: Inks New Plan Framework Agreement with Appaloosa EAST VALLEY: Moody's Rates $290 Million Senior Secured Notes at B1 EDGEWATER FOODS: Posts Net Loss of $464,685 in Qtr. Ended May 31 ENTERPRISE GP: Moody's Rates Proposed $1.2 Billion Loan at Ba2 EPCO HOLDINGS: Moody's Rates Proposed $1.7 Billion Loan at Ba2 FIRST HORIZON: Fitch Junks Ratings on Two Certificate Classes FORD MOTOR: Tata Motors Eyes Jaguar & Land Rover FRENCH VALLEY: Seeks to Obtain $24.75 Million in DIP Financing FRONTIER DRILLING: S&P Affirms Corporate Credit Rating at B- GATEHOUSE MEDIA: Commences Public Offering of 17 Million Shares GE CAPITAL: Moody's Downgrades Class B2 Certificates Rating to B2 GMAC COMMERCIAL: Fitch Affirms Rating on Class O-2 Certs. at B GRANDE COMMS: Gets Required Consents to Issue $25 Mil. Sr. Notes HANCOCK FABRICS: Court Extends Lease Rejection Deadline to Oct. 17 HANCOCK FABRICS: Court Approves Sale Amendment with Fauntleroy HEALTH CARE: Offering $350 Million of Convertible Senior Notes HORIZON LINES: Commences Offering for 9% and 11% Senior Notes INDYMAC INDX: Moody's Reviews Ba2 Ratings on Two Tranches INTEGRATED HEALTHCARE: Appoints Retired Judge Jameson as Director ION MEDIA: Extends Exchange Offer to July 27 IPSCO INC: Gets Requisite Consents for 8-3/4% Sr. Notes Offering IPSCO INC: Canadian Competition Bureau OKs Plan of Arrangement JEFFREY MORAN: Case Summary & 16 Largest Unsecured Creditors JOHN SIMS: Case Summary & 19 Largest Unsecured Creditors JON BOUMA: Case Summary & 12 Largest Unsecured Creditors JON HOHMAN: Case Summary & 18 Largest Unsecured Creditors JORDYN HOLDINGS: Creditors' Panel Taps Stichter Riedel as Counsel JP MORGAN: Fitch Affirms Low-B Ratings on Five Loan Classes KENDLE INT'L: Closes $175 Million Senior Notes Public Offering KENNETH SIPSMA: Case Summary & 12 Largest Unsecured Creditors KING PHARMA: Sells Rochester Facility to JHP for $90 Million KONSTANTINO KOURIS: Case Summary & 15 Largest Unsecured Creditors LB COMMERCIAL: S&P Preliminary Rates $8.084MM Class S Certs. at B- LE GOURMET: General Unsecured Creditors to Receive up to 15% LEAR CORP: S&P Places B Corp. Credit Rating on Positive Watch LEHMAN ABS: Liquidation Loss Cues S&P's Default Rating LIFE STYLE: Wants to Use Merchants & Farmers' Cash Collateral LYONDELL CHEMICAL: To Be Acquired by Basell for $19 Bil. in Cash LYONDELL CHEMICAL: Declares $0.225 per Share Quarterly Dividend LYONDELL CHEMICAL: Fitch Puts Rating on Negative Watch LYONDELL CHEMICAL: Moody's Reviews Ba3 Corporate Family Rating MARIA RIOS: Case Summary & Nine Largest Unsecured Creditors MAYCO PLASTICS: Wants Court to Approve Settlement with GM MCKESSON CORP: Inks Definitive Agreement to Acquire Awarix MERRILL LYNCH: S&P Preliminary Rates $5.096MM Class P Certs. at B- MICHAEL NELSON: Case Summary & 20 Largest Unsecured Creditors MICHAEL VELOTTA: Case Summary & Seven Largest Unsecured Creditors MORGAN STANLEY: Fitch Lifts Rating on $8MM Class K Certs. to BB+ MORGAN STANLEY: S&P Assigns Junk Ratings on Two Cert. Classes MYSTIQUE ENERGY: Completes $19.2 Million Sale of Oil & Gas Assets NAAC REPERFORMING: Moody's Reviews B2 Rating on Two Cert. Classes NAGY GOLF: Voluntary Chapter 11 Case Summary NOMURA ASSET: Moody's Reviews Ratings on Four Certificate Classes NORMAN QUINTERO: Voluntary Chapter 11 Case Summary OMEGA HEALTHCARE: Board Declares Common & Preferred Stock Dividend OPTION ONE: Moody's Lowers Class M-7 Certificate's Rating to B1 OSCAR ROJAS: Case Summary & Eight Largest Unsecured Creditors PACER HEALTH: Closes New $5.5 Million Secured Credit Facility PALM INC: Moody's Assigns Corporate Family Rating at B1 PASCO COUNTY: Moody's Affirms Ba3 Rating on $1.36 Million Bonds PLAINS EXPLORATION: To Acquire Pogo Producing for $3.6 Billion POGO PRODUCING: To Sell Assets to Plains Exploration for $3.6 Mil. POLYPORE INTERNATIONAL: IPO Completion Cues S&P's Positive Outlook PRESIDENT CASINOS: Posts Net Loss of $354,000 in Qtr. Ended May 31 RENEWABLE RESOURCES: Case Summary & 22 Largest Unsecured Creditors RIVERDEEP INTERACTIVE: Moody's Reviews B3 Corporate Family Rating ROBERT STONE: Voluntary Chapter 11 Case Summary SCOTT HYMAN: Voluntary Chapter 11 Case Summary SOUNDVIEW HOME: Moody's Rates Class M-10 Certificates at Ba1 STONERIDGE INC: Moody's Rates New Senior Secured Term Loan at B1 TANAMI TRADING: Case Summary & 20 Largest Unsecured Creditors TD BANK: Confirms Underwriting $3.3 Bil. Facility for BCE Buyers TEREX CORP: Stockholders OK Issuance of Additional Shares of Stock TCGC LLC: Case Summary & 20 Largest Unsecured Creditors TRIAD HOSPITALS: Fitch Lowers Issuer Default Rating to B from BB- UNED ASSOCIATES: Judge Glenn Confirms Ch. 11 Plan of Liquidation UNICO INC: May 31 Balance Sheet Upside-down by $2.7 Million UNITED REFINING: Earns $32.4 Million in Third Qtr. Ended May 31 VALCOM INC: Case Summary & 20 Largest Unsecured Creditors VENOCO INC: Underwriters Purchase Additional 465,000 Shares WESTAR ENERGY: Completes Sale of 3.7 Mil. Shares for $100 Million WHISTLER LAGOON: Wants Chapter 11 Case Dismissed WHOLE FOODS: Board Initiates Inquiry on CEO Online Postings ZAPPALA FARMS: Case Summary & 20 Largest Unsecured Creditors * Moody's Upgrades Ratings on 55 Jumbo Prime RMBS * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 534 LAS AMERICAS: Taps Johnson Law Firm as Bankruptcy Counsel ------------------------------------------------------------- 543 Las Americas LLC asks the United States Bankruptcy Court for the Southern District of Texas from permission to employ The Law Office of Peter Johnson, as its counsel. As the Debtor's counsel, the firm will: a. render professional services in the general administration of the Debtor's case; b. prepare and file of any necessary complaint to sell or recover property of the estate; c. render advice and counsel to the debtor-in-possession; d. prepare pleadings and documents for the use and sale of property; e. prepare, negotiate and draft documents required for a plan of reorganization and accompanying disclosure statement; f. represent the debtor-in-possession at various court hearings; and g. perform all other legal services for the Debtor. The Debtor tells the Court that Peter Johnson, Esq., the principal attorney designated to represent the Debtor's case, bills $325 per hour. To the best of the Debtor's knowledge Mr. Johnson does not hold any interest adverse to the Debtor's estate and creditors and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Johnson can be reached at: Peter Johnson, Esq. The Law Offices of Peter Johnson Eleven Greenway Plaza 2820 Aim Investments Tower Houston, Texas 77046 Tel: (713) 961-1200 Fax: (713) 552-1433 http://www.pjlaw.com/ Headquartered in Houston, Texas, 534 Las Americas LLC owns a single tract of real estate located at 5909 Glenmont in Houston, Texas on which it currently operates a 534-unit apartment complex and formerly rented certain space within the Project to a "charter school" that was operated by the Houston Independent School District. The company filed for Chapter 11 protection on June 4, 2007 (Bankr. S.D. Tex. Case No. 07-33778). Peter Johnson, Esq., in Houston, Texas, represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in this case to date. At June 4, 2007, the Debtor's balance sheet showed total assets of $12,837,888 and total debts of $9,975,619. ABC LOCK: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: A.B.C. Lock & Glass, Inc. 1700 Victorian Avenue Sparks, NV 89431 Bankruptcy Case No.: 07-50924 Type of business: The Debtor provides residential and commercial locksmithing, glazing and repair and replacement of auto glass. See http://www.abclockglass.com/ Chapter 11 Petition Date: July 16, 2007 Court: District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: Alan R. Smith, Esq. 505 Ridge Street Reno, NV 89501 Tel: (775) 786-4579 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ I.R.S. value of security: $529,000 200 South Virginia Street $100,000 Stop 5201RN Reno, NV 89501 Dana Johnson $300,000 610 East Vista Bisbee, AZ 85603 Walt's Sons Ventures, loans $160,000 L.L.C. 610 East Vista Bisbee, AZ 85603 A.T.&T. yellow page $84,000 advertising Wells Fargo Credit Line $70,000 Visa Nevada Dept. of Taxation sales tax $25,000 Clark Security Products goods/services $16,279 A.C.I. Distribution goods/services $16,167 00400893 Wells Fargo-2097 goods/services $12,000 Washoe County D.A. checks written to $6,960 third party creditors Nevada Lock goods/services $5,220 Bible Mousal attorney's fees $5,000 Wells-Fargo Visa $5,000 Overdraft Western States Glass goods/services $3,616 C.F.C. Investments purchase money $13,166 security; value of security: $10,000 Pitney Bowes Leasing goods/services $2,998 A.C.I. Distribution goods/services $2,933 00554631 International Window goods/services $1,795 Office Depot goods/services $798 Office Max goods/services $744 ALION SCIENCE: Increased Debt Leverage Cues S&P's Negative Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B' corporate credit and 'CCC+' senior unsecured debt ratings on McLean, Virginia-based Alion Science And Technology Corp. At the same time, Standard & Poor's revised its outlook on Alion to negative from stable. Standard & Poor's also affirmed its 'BB-' bank loan and '1' recovery ratings on Alion's $292 million senior secured bank facility, which consists of a $50 million revolving credit facility and a $242 million term loan (including the proposed $25 million add-on). "The revision of the outlook to negative reflects increased debt leverage resulting from the proposed $25 million term loan add- on," said Standard & Poor's credit analyst Ben Bubeck. Alion's debt leverage will increase to more than 8x from the high-7x area prior to this transaction. Furthermore, the company has generated negative free operating cash flow over the past several quarters, and liquidity is limited to about $45 million of revolver availability. Proceeds from the proposed $25 million term loan add-on will be used to fund the buyback of ESOP stock based on distribution requests. The ratings on Alion reflect its second-tier position in the highly competitive and consolidating government IT services market, an acquisitive growth strategy, high debt leverage, and limited liquidity. A predictable revenue stream based upon a strong backlog and the expectation that the government IT services sector will continue to grow over the intermediate term are partial offsets to these factors. Alion is an R&D, engineering, and information technology company that provides services and communications solutions primarily to the federal government. Pro forma for the proposed term loan add- on, Alion has approximately $680 million in total operating lease- adjusted debt, including redeemable common stock warrants. AMERICHIP INT'L: May 31 Balance Sheet Upside-down by $788,703 ------------------------------------------------------------- AmeriChip International Inc.'s balance sheet at May 31, 2007, showed $7.6 million in total assets, $8.4 million in total liabilities, and $3,413 in minority interest, resulting in a $788,703 total stockholders' deficit. The company's consolidated balance sheet at May 31, 2007, also showed strained liquidity with $1.1 million in total current assets available to pay $4.5 million in total current liabilities. The company reported a net loss of $1.7 million on revenues of $628,198 for the second quarter ended May 31, 2007, compared with a net loss of $3.7 million on revenues of $33,611 for the same period ended May 31, 2006. Gross profit for the quarter ended May 31, 2007, increased from $6,000 for the quarter ended May 31, 2006, to $381,339. The increased gross margin is due to the operating results provided by KSI Machine & Engineering Inc., a subsidiary of AmeriChip. Operating expenses decreased to $1.9 million from $3.7 million for the three months ended May 31, 2006. This decrease is primarily due to the decrease in the amount of $2.1 million in consulting expenses. The decrease in net loss is primarily due to the decrease in operating expenses. Full-text copies of the company's consolidated financial statements for the quarter ended May 31, 2007, are available for free at http://researcharchives.com/t/s?219e Going Concern Doubt As reported in the Troubled Company Reporter on April 3, 2007, Williams & Webster PS, in Spokane, Wash., expressed substantial doubt about AmeriChip International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Nov. 30, 2006. The auditing firm pointed to the company's significant operating losses. About AmeriChip International Headquartered in Plymouth, Mich., AmeriChip International Inc. (OTC BB: ACHI.OB) -- http://www.americhiplacc.com/ -- holds a patented technology known as Laser Assisted Chip Control, the implementation of which results in efficient chip control management in industrial metal machining applications. This technology provides substantial savings in machining costs of certain automobile parts providing much more competitive pricing and more aggressive sales approaches within the industry. BANK OF AMERICA: Fitch Affirms B- Rating on $5.7MM Class P Certs. ----------------------------------------------------------------- Fitch Ratings has upgraded six classes of Bank of America, N.A.- First Union National Bank Commercial Mortgage Trust's (BofA-FUNB) commercial mortgage pass-through certificates, series 2001-3, as: -- $17.1 million class G to 'AAA' from 'AA+'; -- $14.2 million class H to 'AAA' from 'AA'; -- $14.2 million class J to 'AA+' from 'A+'; -- $29.8 million class K to 'A-' from 'BBB+'; -- $8.5 million class L to 'BBB+' from 'BBB'; -- $8.5 million class M to 'BBB' from 'BBB-'. In addition, Fitch has affirmed these classes: -- $55.5 million class A-1 at 'AAA'; -- $608.5 million class A-2 at 'AAA'; -- $50 million class A-2F at 'AAA'; -- Interest-only class XC at 'AAA'; -- Interest-only class XP at 'AAA'; -- $42.6 million class B at 'AAA'; -- $17.1 million class C at 'AAA'; -- $17.1 million class D at 'AAA'; -- $14.2 million class E at 'AAA'; -- $17.1 million class F at 'AAA'; -- $14.2 million class N at 'BB'; -- $5.7 million class O at 'B+'; -- $5.7 million class P at 'B-'. Fitch does not rate the $13.7 million class Q or the subordinate component class V-1, V-2, V-3, V-4, and V-5 certificates. The rating upgrades are due to defeasance and amortization since Fitch's last ratings action. Since issuance, 27 loans (25.9%) have defeased, including three of the top five loans (9.3%). As of the July 11, 2007 distribution date, the pool has paid down 16% to $956.8 million from $1.14 billion at issuance. There are currently no delinquent or specially serviced loans. BASELL AF: Inks Pact to Acquire Lyondell for $19 Billion in Cash ---------------------------------------------------------------- Basell and Lyondell Chemical Company have signed a definitive agreement pursuant to which Basell will acquire Lyondell's outstanding common shares for $48 per common share in an all cash transaction with a total enterprise value of approximately $19 billion, including the assumption of debt. The purchase price per share represents a 45% premium to Lyondell's closing share price on May 10, 2007, the day prior to the disclosure by Access Industries, the industrial group that owns Basell, of its potential interest in Lyondell, and a 20% premium to Lyondell's closing share price on July 16, 2007. The transaction was unanimously approved by the Boards of Directors of Basell and Lyondell. The transaction will create one of the sector's largest companies. Lyondell's three business segments -- ethylene, co-products and derivatives; propylene oxide and related products; and refining -- will complement and significantly strengthen Basell's polyolefins business. Basell and Lyondell together would have had combined 2006 revenues of approximately $34 billion and 15,000 employees around the world. "The combination of Basell and Lyondell creates one of the top chemical companies in the world," Len Blavatnik, Chairman and Founder of U.S.-based Access Industries, said. "This combination further strengthens Access' long-term strategic position in the global petrochemical industry." "Lyondell's competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell's diversified portfolio," Volker Trautz, Chief Executive Officer of Basell, said. "We believe this transaction offers significant value for Lyondell's shareholders," Dan F. Smith, Chairman, President and Chief Executive Officer of Lyondell, said. "We are very pleased that Basell recognizes the value and fit of our portfolio of chemical and refining assets. Basell and Lyondell share a common vision for continued success, and the combination of our companies will enhance our opportunities." The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Lyondell shareholders. This transaction is expected to close within the next several months and is not subject to financing. About Lyondell Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE:LYO) -- http://www.lyondell.com/-- is North America's third-largest independent, publicly traded chemical company. Lyondell manufactures chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE. The company also has locations in Austria, France, Italy, The Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil, China, Japan, Taiwan, India and Singapore. About Basell Basell -- http://www.basell.com/-- produces polypropylene and advanced polyolefin products, supplies polyethylene and catalysts, and provides technical services for its proprietary technologies. Basell, together with its joint ventures, has manufacturing facilities in 19 countries and sells products in more than 120 countries. Basell is privately owned by Access Industries. BASELL AF: Fitch Puts Low-B Ratings on Watch Negative ----------------------------------------------------- Fitch Ratings placed Netherlands-based Basell AF SCA's ratings on Rating Watch Negative, following the company's announcement of its definitive agreement to acquire US-based Lyondell Chemical Company (rated 'BB-'). Basell's Short-term Issuer Default Rating is affirmed at 'B'. Basell's ratings are: Long-term IDR: 'BB-' on RWN Senior secured: 'BB+' on RWN Senior notes: 'B+' on RWN This follows the announcement that Basell will acquire Lyondell's outstanding common shares for $48 per common share in an all cash transaction with a total enterprise value of approximately $19 billion, including the assumption of debt. Fitch expects a re- leveraging of Basell's balance sheet as customary for sponsor- driven transactions, which is likely to result in a downgrade of Basell's Long-term IDR by at least one notch. Fitch expects to resolve the RWN upon the closure of the transaction and review of the financing plan. The transaction will create one of the world's largest chemicals companies with combined revenues (FY06) of around $34 billion and around 15,000 employees around the world. The transaction is subject to regulatory approvals and the approval of Lyondell's shareholders. Basell expects the transaction to close within the next several months. The transaction was unanimously approved by the Boards of Directors of Basell and Lyondell. This offer follows two recent bids for Huntsman Corp and GE Plastics, which Basell both lost to higher bidders (Hexion Specialty Chemicals, Inc. and SABIC, respectively). BCAP LLC: Moody's Reviews Class M-9's Ba1 Rating and may Downgrade ------------------------------------------------------------------ Moody's Investors Service placed under review for possible downgrade one tranche from the BCAP LLC Trust 2006-AA1 securitization. The collateral backing this transaction consists of primarily first-lien, fixed and adjustable-rate, Alt-A mortgage loans. The rating was placed under review for downgrade based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. Complete rating action is: Issuer: BCAP LLC Trust -- Series 2006-AA1, Class M-9, current rating Ba1, under review for possible downgrade BCE INC: Buyer Obtains $500 Million Bridge Fund from TD Bank ------------------------------------------------------------ A group of institutional investors led by Ontario Teachers' Pension Plan Board in support of their bid to acquire BCE Inc. was provided a $500 million equity bridge facility by TD Bank Financial Group. TD Bank also confirmed that it has underwritten $3.3 billion of a $34.3 billion credit facility for the group of investors in connection with the BCE acquisition. While these commitments are large, they were entered into following the Bank's normal credit processes and are within the risk tolerances provided for in the Bank's risk management framework. In the ordinary course, the Bank would expect to syndicate these commitments among other financial institutions and investors. As previously reported, BCE Inc. has entered into a definitive agreement to be acquired by an investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners LLC. About TD Bank The Toronto-Dominion Bank (TSE; NYSE; Tokyo Stock Exchange: TD) - http://www.td.com/-- and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group serves more than 14 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Banknorth; and Wholesale Banking, including TD Securities. TD Bank Financial Group also has more than 4.5 million on-line customers. The Bank had $397 billion in assets as of April 30, 2007. About Ontario Teachers' Pension Plan Headquartered in Toronto, Ontario, Teachers' Private Capital -- http://www.otpp.com/-- is North America's private investors, providing equity and mezzanine debt capital for large and mid- sized companies, venture capital for developing industries, and financing for a growing portfolio of infrastructure and timberland assets worldwide. It is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 271,000 active and retired teachers. About BCE Inc. Headquartered in Montreal, Quebec, BCE Inc. (TSX/NYSE: BCE) -- http://www.bce.ca/-- is a communications company, providing comprehensive and innovative suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services. Other BCE holdings include Telesat Canada and an interest in CTVglobemedia. * * * As reported in the Troubled Company Reporter on July 5, 2007, Fitch Ratings downgraded BCE Inc.'s issuer default rating and senior unsecured debt rating to BB- from BBB+. BEAR STEARNS: Moody's Reviews Ratings on 13 Tranches ---------------------------------------------------- Moody's Investors Service placed under review for possible downgrade thirteen tranches from eight deals issued by Bear Stearns in 2006. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were placed under review for downgrade based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. Complete rating actions are: Issuer: Bear Stearns Alt-A Trust -- Series 2006-1, Class I-B-2, current rating Baa3, under review for possible downgrade -- Series 2006-1, Class I-B-3, current rating Ba2, under review for possible downgrade -- Series 2006-2, Class I-B-2, current rating Baa3, under review for possible downgrade -- Series 2006-2, Class I-B-3, current rating Ba2, under review for possible downgrade -- Series 2006-3, Class I-B-2, current rating Baa3, under review for possible downgrade -- Series 2006-3, Class I-B-3, current rating Ba2, under review for possible downgrade -- Series 2006-4, Class I-B-2, current rating Baa3, under review for possible downgrade -- Series 2006-4, Class I-B-3, current rating Ba2, under review for possible downgrade -- Series 2006-5, Class I-B-2, current rating Baa3, under review for possible downgrade -- Series 2006-5, Class I-B-3, current rating Ba2, under review for possible downgrade Issuer: Bear Stearns Asset Backed Securities I Trust -- Series 2006-AC1, Class I-B-4, current rating Ba2, under review for possible downgrade -- Series 2006-AC2, Class I-B-4, current rating Ba2, under review for possible downgrade -- Series 2006-AC3, Class B-4, current rating Ba2, under review for possible downgrade BEST MANUFACTURING: Trustee Hires Sobel as Forensic Accountants --------------------------------------------------------------- The United States Bankruptcy Court for the District of New Jersey gave Stacey L. Meisel, the appointed Chapter 7 Trustee for Best Manufacturing LLC and its debtor-affiliates' bankruptcy cases, permission to employ Sobel & Co. LLC as her forensic accountants. As the Trustee's forensic accountants, the firm is expected to perform expert testimony in Court, forensic accounting, and investigation relating to avoidance action. The firm's professionals billing rates: Designation Hourly Rate ----------- ----------- Managing Partner $365 Partner $345 Senior Manager $265 Supervisor $170 - $260 Senior Accountant $140 - $165 Staff Accountant $90 - $105 Darryl S. Neier, a certified fraud examiner of the firm, assures the Court that he does not hold any interest adverse to the Debtors' estates and creditors as defined in Section 101(14) of the Bankruptcy Code. Mr. Neier can be reached at: Darryl S. Neier Sobel & Co., LLC 293 Eisenhower Parkway, Suite 290 Livingston, NJ 07039 Tel: (973) 994-9494 Fax: (973) 994-1571 http://www.sobel-cpa.com/ Headquartered in Jersey City, New Jersey, Best Manufacturing Group LLC -- http://www.bestmfg.com/-- and its subsidiaries manufacture and distribute textiles, career apparel and other products for the hospitality, healthcare and textile rental industries with satellite operations located across the United States, Canada, Mexico, the United Kingdom, and the Philippines. The company and four of its subsidiaries filed for chapter 11 protection on Aug. 9, 2006 (Bankr. D. N.J. Case No. 06-17415). The case was converted to Chapter 7 on May 3, 2007. Stacey L. Meisel was appointed as Chapter 7 Trustee on May 4, 2007. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard, P.A., represents the Debtors. Scott L. Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, and Brian L. Baker, Esq., and Stephen B. Ravin, Esq., at Ravin Greenberg PC, represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. CARDTRONICS INC: Prices $100 Million Senior Notes Offering ---------------------------------------------------------- Cardtronics Inc. priced its private offering of $100 million aggregate principal amount of 9-1/4% senior subordinated notes due 2013 - Series B at 97% of par. The notes are being offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption from the registration requirements. The company expects closing to occur on July 20, 2007. Net proceeds from the offering will be about $93.5 million. The company intends to use the net proceeds from this offering, together with available cash and borrowings under its revolving credit facility, to fund its previously announced acquisition of substantially all of the assets of the financial services business of 7-Eleven Inc., which is also expected to close on July 20, 2007. About Cardtronics Headquartered in Houston, Texas, Cardtronics Inc. -- http://www.cardtronics.com/-- is a non-bank owner/operator of ATMs with more than 25,750 locations. The company operates in every major U.S. market, at approximately 1,700 locations throughout the U.K., and at over 700 locations in Mexico. * * * As reported in the Troubled Company Reporter on July 11, 2007, Moody's Investors Service assigned a Caa1 rating to Cardtronics, Inc.'s proposed additional $125 million "tack-on" high yield subordinated notes, which will be used to fund the $135 million acquisition of the assets of financial services business of 7-Eleven. Moody's also affirmed the corporate family rating of Cardtronics of B3. The rating outlook is stable. CASA PALMS: Case Summary & Largest Unsecured Creditor ----------------------------------------------------- Debtor: Casa Palms, L.L.C. 1501 West Sahara Avenue Las Vegas, NV 89102 Bankruptcy Case No.: 07-14332 Type of business: The Debtor owns real estate. Chapter 11 Petition Date: July 17, 2007 Court: District of Nevada (Las Vegas) Judge: Mike K. Nakagawa Debtor's Counsel: David J. Winterton, Esq. 211 North Buffalo Drive, Suite A Las Vegas, NV 89145 Tel: (702) 363-0317 Total Assets: $7,086,500 Total Debts: $3,460,000 Debtor's Largest Unsecured Creditor: Entity Claim Amount ------ ------------ Douglas Mitchell $60,000 300 South 4th Street, Suite 800 Las Vegas, NV 89101-6009 CCS MEDICAL: Moody's Rates Planned $365 Million Term Loan at (P)B3 ------------------------------------------------------------------ Moody's Investors Service prospectively assigned a (P)B3 rating to CCS Medical Inc.'s planned $365 million secured term loan and $50 million secured revolver based on the company's proposed capital structure, which includes the refinancing of existing first and second lien bank debt and HOLDCO senior unsecured notes in conjunction with an intended IPO. The ratings are provisional, subject to the closing of these transactions and receipt and review of final documentation. Moody's anticipates that the closing will occur prior to the end of August. As mentioned in Moody's press release dated June 29, 2007, the ratings on the existing bank facilities are expected to be withdrawn upon the close of these transactions. At the same time, Moody's said that it would likely upgrade CCS Medical's corporate family rating to B3 from Caa1 with a positive outlook assuming the company is able to successfully complete the proposed transactions as presented and meaningfully reduce financial leverage. If these transactions do not occur as planned, an upgrade of the corporate family rating to a B3 would require evidence that the company could sustain improvement in credit metrics, such as Debt/EBITDA below 6 times, EBIT to interest coverage above 1.2 times and free cash flow to debt in the 3-5% range. Ratings assigned prospectively: CCS Medical Inc. -- $365 million 1st lien secured term loan at (P)B3, LGD3, 34% -- $50 million 1st lien secured revolver at (P)B3, LGD3, 34% Ratings remaining under review for possible upgrade: CCS Medical Inc. -- Corporate family rating at Caa1 -- PDR at Caa1 Ratings to be withdrawn upon the closing of proposed transactions: -- $320 million 1st Priority Secured Term at B3, LGD3, 33% -- $50 million 1st Priority Secured Revolver at B3, LGD3, 33% -- $110 million Sr. 2nd Priority Secured Term at Caa2, LGD5, 81% CCS Medical Inc. is a leading provider of mail-order medical supplies and services to chronically ill patients. Warburg Pincus is the largest shareholder and equity sponsor for CCS Medical. Based in Clearwater, Florida, is holding company whose operating subsidiaries are Chronic Care Solutions, Inc. and MPTC Holdings, Inc. On a combined basis, reported revenues at year end 2006 were about $432 million. CHAMPION ENT: Net Income Down to $7.5MM in Quarter Ended June 30 ---------------------------------------------------------------- Champion Enterprises Inc. reported revenues for its second quarter ended June 30, 2007, decreased 11% to $330.4 million, compared to $370.7 million for the second quarter of 2006. Income from continuing operations before income taxes totaled $10 million compared to $11.5 million for the second quarter of 2006. Net income for the quarter totaled $7.5 million, compared to net income of $112.1 million for the same period of the prior year. Net income for the second quarter of 2006 included $101.9 million of income from the reversal of the previously recorded deferred tax asset valuation allowance. Cash and cash equivalents increased to $104.8 million at June 30, 2007, compared to $76.6 million at the end of the first quarter of 2007. Cash flow from continuing operating activities totaled $23.6 million for the quarter ended June 30, 2007, compared to $12.6 million for the same period last year, while free cash flow improved to $21.8 million from $8 million for the second quarter of 2006. The company amended its credit facility during the quarter to adjust both the allowed leverage and required interest coverage for the last 12 months ended June 30, 2007, and for the 12-month periods ending Sept. 29, 2007, and Dec. 29, 2007. The company was in compliance with both requirements, as amended, for the period ended June 30, 2007. As of June 30, 2007, the company's balance sheet showed total assets of $840.9 million, total liabilities of $533.6 million, and total shareholders' equity of $307.3 million. The company's working capital at June 30, 2007, was $67.2 million. Management Comments "Despite continuing difficulties in the U.S. housing markets, our results this quarter demonstrate the substantial efforts we've made to right size our organization and to improve efficiencies in our plants regardless of market conditions," stated William Griffiths, chairman, president and chief executive officer of Champion Enterprises Inc. "While our manufacturing segment sales declined 19%, our segment margin improved to 6.7% for the quarter, up from 6.6% last year. In addition, the manufacturing segment ended the quarter on a strong note with backlogs improving over 30% year-over-year and over 60% since last quarter. "Further, the international segment reported its strongest quarter since being acquired in April of 2006 by more than doubling both sales and segment income as compared to the second quarter of 2006." Mr. Griffiths concluded, "Finally, as a result of our strict focus on cash and working capital management, we nearly tripled free cash flow as compared to last year's second quarter, adding further to the resources available for reinvestment in our longer- term growth and diversification strategy." About Champion Auburn Hills, Michigan-based Champion Enterprises Inc., (NYSE: CHB) -- http://www.championhomes.com/-- operates 32 manufacturing facilities in North America and the United Kingdom and works with over 3,000 independent retailers, builders and developers. The Champion family of builders produces manufactured and modular homes, as well as modular buildings for government and commercial applications. * * * As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit ratings on Champion Enterprises Inc. and its subsidiary, Champion Home Builders Co. At the same time, all other Champion-related ratings were affirmed, including the recovery ratings of '4' on the Champion's senior notes and the subsidiary's senior secured credit facility. These actions affect $241 million of debt. The outlook is stable. CITIGROUP COMMERCIAL: Fitch Cuts Rating on Class M Certs. to B -------------------------------------------------------------- Fitch Ratings has upgraded four classes of commercial mortgage pass-through certificates from Citigroup Commercial Mortgage Securities, series 2005-EMG, as: -- $2,708,000 class C to 'AAA' from 'AA+'; -- $5,416,000 class D to 'AA' from 'AA-'; -- $1,805,000 class E to 'AA-' from 'A'; -- $3,611,000 class F to 'A' from 'A-'. Fitch has also downgraded the rating on this class of certificates: -- $1,786,197 class M to 'B/DR1' from 'B+'. Additionally, Fitch has affirmed these classes: -- $77,508,214 class A-1 at 'AAA'; -- $115,939,000 class A-2 at 'AAA'; -- $42,513,000 class A-3 at 'AAA'; -- $199,016,000 class A-4 at 'AAA'; -- $46,036,000 class A-J at 'AAA'; -- Interest-only class X at 'AAA'; -- $7,222,000 class B at 'AAA'; -- $1,805,000 class G at 'BBB'; -- $3,611,000 class H at 'BBB-'; -- $8,124,000 class J at 'BB+'; -- $2,708,000 class K at 'BB'; -- $1,806,000 class L at 'BB-'. The downgrade is the result of principal losses that arose from the prepayment of a loan which occurred in June 2006. The rating upgrades reflect the increased subordination levels due to scheduled amortization and loan payoffs. As of the June 2007 distribution date, the pool has paid down 27.7% to $521.6 million from $722.1 million at issuance. Of the original 265 loans, 203 loans remain outstanding. There are no delinquent or specially serviced loans. The accelerated paydown demonstrated by this transaction is due to approximately 43% of the pool having more than five years of seasoning, with a shorter weighted average remaining amortization schedule than typical conduit transactions. The real estate collateral in the pool is considered strong, as all but two properties are located within the New York City metropolitan area. CLADDAGH DEVELOPMENT: Trustee Taps George Fels as Accountant ------------------------------------------------------------ Richard D. Nelson, Chapter 11 trustee appointed in the Claddagh Development Group LLC and its debtor-affiliates' chapter 11 cases, seeks permission from the U.S. Bankruptcy Court for the Southern District of Ohio, Western Division, to employ George W. Fels as his accountant. Mr. Fels will: a) perform forensic accounting and expense analysis to discover any financial improprieties that took place under prior management; b) review the debtors books and records; c) prepare a summary for the trustee's review; and d) testify to his works and analysis, when necessary. Mr. Fels, a certified public accountant, discloses that he bills $195 per hour and his bookkeeping assistants bill $100 per hour. He also added that any travel outside the Greater Cincinnati Area will be charged at 50% of their hourly rates. Mr. Fels has requested the Trustee to pay the invoice on a monthly basis. To the best of the Trustee's knowledge, Mr. Fels is a "disinterested person" as that term is defined in the Bankruptcy Code Section 101(14). Headquartered in Mason, Ohio, Claddagh Development Group LLC -- http://www.claddaghirishpubs.com/-- and -- http://www.thecladdaghpub.com/-- operates a number of Irish- themed pubs and restaurants. The Debtor's estate consists of a chain of 17 restaurants, each operated by an affiliate of the Debtor. The company employs approximately 75 employees. On Oct. 5, 2006, The John F. Gallagher Company, Queensgate Food Group LLC, Economy Linen Inc.1, and Great Lakes Concrete Restoration, Inc., filed an involuntary chapter 11 petition against Claddagh Development (Bankr. S.D. Ohio Case No.: 06-33124). Economy Linen has since withdrawn as a petitioning creditor. Ronald S. Pretekin, Esq.; Steven M. Wachstein, Esq. and Sylvie J. Derrien, Esq. of Coolidge Wall Co. LPA represent the Debtors min their restructuring efforts. Douglas L. Lutz, Esq. of Frost Brown Todd, LLC represents the Official Committee of Unsecured Creditors. When the debtors filed for protection against their creditors, they listed estimated assets and debts between $1 million to $100 million. On Dec. 28, 2006, the Court appointed Richard D. Nelson as Claddagh Development's chapter 11 trustee. Richard D. Nelson, Esq., Donald J. Rafferty, Esq. and Monica V. Kindt, Esq. of Cohen, Todd, Kite & Stanford, LLC. represent the Trustee. On the period from Jan. 10 to Jan. 18, 2007, the chapter 11 trustee filed voluntary petitions for 20 affiliates. COMMONWEALTH HOLDINGS: Case Summary & Five Largest Creditors ------------------------------------------------------------ Debtor: Commonwealth Holdings, L.C. 5216 Juniper Ridge Road Cedar City, UT 84720 Bankruptcy Case No.: 07-23225 Chapter 11 Petition Date: July 17, 2007 Court: District of Utah (Salt Lake City) Debtor's Counsel: Andres' Diaz, Esq. Timothy J. Larsen, Esq. 1 On 1 Legal Service, P.L.L.C. 9 Exchange Place, Suite 417 Salt Lake City, UT 84111 Tel: (801) 596-1661 Fax: (801) 359-6803 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Private Capital Group loan services for $4,800,000 505 East Windmill Lane lenders on real Suite 1b-236 estate Las Vegas, NV 89123 Brian Head Town utilities $28,000 56 North Highway 43 Brian Head, UT 84719 New Horizons Engineering engineering $5,500 252 North 200 West services Cedar City, UT 84720 L.E.I. Engineers engineering $600 services Hofeling & Wayment office rent $450 COMMUNITY HEALTH: Fitch Junks Rating on $9.1 Bil. Unsecured Notes ----------------------------------------------------------------- Fitch Ratings has downgraded Community Health Systems, Inc.'s ratings as: -- Issuer Default Rating to 'B' from 'BB'; -- Secured Bank Credit Facility to 'BB-/RR2' from 'BB'. At the same time, Fitch has removed Community from Rating Watch Negative, where it was originally placed on March 19, 2007; the Outlook is now Stable. In addition, the 'B+' rating for the subordinated notes has been withdrawn. Fitch has also assigned a rating to: -- $9.1 billion Senior Unsecured Notes 'CCC+/RR6'. The action reflects Community's forthcoming completion of its Triad Hospitals Inc. acquisition for approximately $5.1 billion. Community will also assume approximately $1.7 billion in existing debt, for a total deal valued at $6.8 billion, or approximately 9.4x fiscal 2006 EBITDA. Community's ratings reflect the deterioration in its credit metrics as a result of the debt-financed acquisition. To fund the transaction and to refinance approximately $3.6 billion of existing debt at both Community and Triad, Community is issuing approximately $9.1 billion in new bank debt and senior unsecured notes. As a result, Fitch expects Community's leverage to increase significantly post-merger and to remain elevated over the next few years. Fitch believes asset divestitures or equity issuances may be used to reduce debt in the near term, but that leverage will remain consistent with the 'B' rating category. In addition, Fitch expects free cash flow to be strained as cash is used to service debt and capital expenditures. Community's decreased financial flexibility is partially offset by the increased size and diversification of the combined company. With more than 130 hospitals, Community will be the largest publicly traded hospital operator in the country, and the second largest for-profit operator in terms of revenues, hospitals, and licensed beds. The addition of Triad's facilities will expand Community's geographic reach and reduce its revenue concentration. The transaction will also expose Community to more mid-size markets compared with Community's traditional rural focus. Fitch notes that providers in mid-size markets tend to face more competition and possess less market power than providers in rural markets. However, revenue growth opportunities can be greater in mid-size markets than in rural. Fitch believes that Community will realize synergies from the transaction primarily through reductions in corporate overhead and capital expenditures. Fitch estimates that annual savings from corporate overhead could range from $40 million-$50 million. In addition, Fitch expects Community to reduce capital expenditures at the Triad facilities. Triad has historically spent 8%-9% of revenues on capital expenditures, which is significantly above the industry average (approximately 7%) and Community's historical level of expenditure (approximately 5%). Although drastic reductions in capital expenditure will not be possible as both companies have committed levels of capital expenditures, Fitch forecasts a gradual reduction in expenditures over the next few years. Fitch also believes that margin expansion may be possible at the legacy Triad facilities. Community has a successful track record of applying its case and resource management programs at acquired facilities, resulting in EBITDA improvement in relatively short periods of time. However, Triad is not a distressed operator and the amount of margin expansion may also be limited by the competitive nature of the markets in which Triad operates. However, some improvement may be possible, particularly with supplies and payments for outsourced services. Fitch believes that Community may also be able to reduce or delay some of Triad's $1.3 billion, 10-year IT project with Perot and McKesson. Fitch's Recovery Ratings are a relative indicator of creditor recovery prospects on a given obligation within an issuers' capital structure in the event of a default. COMPUCOM SYSTEMS: Moody's Assigns Corporate Family Rating at B2 --------------------------------------------------------------- Moody's Investors Service assigned CompuCom Systems, Inc. a corporate family rating of B2 and stable outlook. Buyout firm Court Square Capital Partners has agreed to acquire CompuCom, a value-added provider of information technology products and related services, from Platinum Equity, LLC for $647 million. Concurrent with this transaction and included in the total purchase price, Court Square Capital also agreed to acquire the Managed Services division of Vanguard Managed Solutions, LLC for $21 million. Net proceeds from the $190 million senior secured term loan B and $210 million senior subordinated notes will be used to finance the combined purchase in a highly leveraged transaction. The buyout also consists of a $197 million cash equity investment from the private equity sponsor and management. Subsequent to transaction closing, Moody's will withdraw the B2 CFR and unsecured debt ratings on the former CompuCom and conclude the review for possible downgrade given the likelihood that following the buyout, the former company will have substantially tendered all of the $325 million existing notes. The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. CompuCom's B2 corporate family rating is constrained by the somewhat aggressive use of debt to finance the LBO as well as liberal financial covenants. This concern is further magnified by thin operating margins near 4%, which leave very little room for operational setbacks. Additionally, the rating factors in: i. the year over year decline in the company's procurement revenue at a compound annual rate in excess of 9% coupled with gradual gross margin erosion in its principal segments; ii. the medium- to long-term potential risks of market entry by competitors with greater financial resources, including original equipment manufacturers selling direct; iii. customer concentration; iv. potentially higher working capital requirements; and v. the cyclical nature of the IT hardware, software and services market. The B2 CFR is also supported by CompuCom's unique combination of IT service delivery capabilities and comprehensive procurement and logistics services, the stability provided by recurring revenues from long-term service contracts, the company's blue chip client base, high variable operating costs and the potential for operating margin expansion through cross-sell opportunities of value-added service offerings into its existing client base. The rating also recognizes that the recapitalization increases total funded debt by only $50 million and the infusion of $197 million of new sponsor equity in the capital structure transforms shareholders' equity to positive from negative. Moody's notes that the capital infusion will be used to purchase the common equity of CompuCom, and is effectively replacement equity on the balance sheet for the over $200 million of dividends taken by the former shareholder. The company's ability to generate free cash flow will continue to be supported by its transition to higher value added IT services and its success in maintaining superior service quality at an affordable cost to its customers. Collectively, these factors drive the overall B2 corporate family rating for the company. The stable ratings outlook incorporates Moody's belief that CompuCom will be challenged to support the increased debt load because of continued declines in procurement revenue, gradual gross margin erosion across the IT services and procurement segments and increasing competition. The outlook also reflects Moody's expectations that the rate of decline in procurement segment revenues and gross margins has subsided and will be offset by solid growth exhibited by the IT services segment and higher gross margin contribution from the VMS acquisition. The rating also takes into account Moody's hybrid security treatment for the $177 million of sponsor preferred equity in which 50% of the preferred stock is treated as debt-like and 50% is treated as equity-like. As such, Moody's adjustments incorporate the commensurate increase in debt, equity and interest expense on CompuCom's balance sheet and income statement. The ratings for the senior secured term loan and subordinated notes reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B2, and a loss given default of LGD-2 for the secured term loan and LGD-5 for the subordinated notes. The Ba2 rating of the senior secured term loan reflects its senior position in CompuCom's capital structure, full guarantees of existing and future wholly-owned domestic subsidiaries, an all asset pledge on a first priority basis, and a significant amount of junior debt and other unsecured obligations such as leases in the capital structure. The B3 rating of the subordinated notes reflects their contractual subordination to all senior secured creditors and full guarantees of existing and future wholly-owned domestic subsidiaries on an unsecured basis. These ratings and assessments were assigned: -- Corporate Family Rating (New) -- B2 -- Probability of Default Rating -- B2 -- $190 Million Senior Secured Term Loan B due 2014 -- Ba2 (LGD- 2, 15%) -- $210 Million Senior Subordinated Notes due 2015 -- B3 (LGD-5, 72%) Headquartered in Dallas, Texas, CompuCom Systems, Inc. is a provider of IT procurement and equipment outsourcing. For the twelve months ended March 31, 2007, revenues were $1.5 billion. COMPUCOM SYSTEMS: S&P Affirms B+ Rating and Removes CreditWatch --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Dallas, Texas-based CompuCom Systems Inc., and removed it from CreditWatch where it was placed July 6, 2007. The outlook is stable. At the same time, S&P assigned a 'BB' bank loan rating to the company's proposed $190 million, seven-year term loan B, two notches above the corporate credit rating, with a recovery rating of '1', indicating an expectation for very high (90%-100%) recovery in the event of a payment default. S&P also assigned a 'B-' rating to its proposed $210 million, 10.5%, eight- year senior subordinated notes. Issue proceeds will be used to help fund the acquisition of CompuCom Systems by Court Square Capital Partners in a transaction valued at approximately $628 million, expected to close in the second half of 2007. "After evaluating the proposed debt and equity financings, and the new owner's strategies, we affirmed our 'B+' corporate credit rating and removed the ratings from CreditWatch," said Standard & Poor's credit analyst Philip Schrank. This reflects pro forma debt leverage in the mid-5x area, relatively unchanged from prior levels. Because of its perpetual maturity, absence of conversion rights other than into common stock, and no redemption rights, the equity treatment to the proposed $177 million of preferred stock is incorporated in the analysis. S&P's ratings on CompuCom reflect its narrow, low-margin business focus and aggressive debt leverage. The ratings are, however, supported by modest--but predictable--earnings and cash flow and a growing backlog, coupled with a scalable business model. CONSUMER PORTFOLIO: Earns $3.5 Mil. in Second Qtr. Ended June 30 ---------------------------------------------------------------- Consumer Portfolio Services Inc. reported net income for its second quarter ended June 30, 2007, of $3.5 million, compared to net income of $2.6 million for the quarter ended June 30, 2006. Net income for the second quarter of 2006 did not include a provision for income tax expense. For the three months ended June 30, 2007, total revenues increased about $28.6 million, or 42.6%, to $95.8 million, compared to $67.2 million for the three months ended June 30, 2006. Total expenses for the three months ended June 30, 2007, were $89.6 million, an increase of $25 million, or 38.7%, as compared to $64.6 million for the three months ended June 30, 2006. As of June 30, 2007, the company posted $2.1 billion in total assets, $2 billion in total liabilities, and $116.9 million in total stockholders' equity. The company held total cash of $274.4 million, comprised of $13.4 million unrestricted cash and $261 million in unrestricted cash. Six-Month Period Results Net income for the six months ended June 30, 2007, was $6.7 million, compared to net income of $4.4 million, for the six months ended June 30, 2006. Net income for the six months ended June 30, 2006 did not include a provision for income tax expense. For the six months ended June 30, 2007 total revenues increased about $57 million, or 45.5%, to $182.3 million, compared to $125.3 million for the six months ended June 30, 2006. Total expenses for the six months ended June 30, 2007, were $170.6 million, an increase of $49.8 million, or 41.2%, as compared to $120.8 million for the six months ended June 30, 2006. During the second quarter of 2007, CPS purchased $346 million of contracts from dealers as compared to $330.3 million during the first quarter of 2007 and $268.8 million during the second quarter of 2006. During the first half of 2007, CPS purchased $676.3 million of contracts from dealers as compared to $523.2 million during the first half of 2006. The company's 2007 contract purchases represent an increase of 29.3% vs. the same period in 2006. The company's managed receivables totaled $1.9 billion as of June 30, 2007, an increase of $525 million, or 38.2%, from $1,375.3 million as of June 30, 2006. Term Securitization CPS completed a term securitization in May of receivables primarily originated by CPS and by its subsidiary, The Finance Company, with the sale of $113.3 million of asset backed notes. This was in addition to its regular quarterly securitization program, with the June sale of $315 million of asset backed notes. As previously announced, the quarterly transaction was executed with lower credit enhancement requirements than the first quarter transaction. Both transactions were completed smoothly in an otherwise uncertain credit market. Subsequent to quarter end, the company issued $60 million of two-year notes under a new $120 million revolving and term residual interest financing facility. Annualized net charge-offs during the first half of 2007 were 4.6% of the average owned portfolio as compared to 3.71% during the same period in 2006. Delinquencies greater than 30 days were 4.85% of the total owned portfolio as of June 30, 2007, as compared to 3.87% as of June 30, 2006. Executive Comments "The second quarter marks our largest quarter of new contract originations in the history of the company," said Charles E. Bradley, Jr., president and chief executive officer. "The controlled growth strategy that we implemented in the first quarter of 2004 has proven successful as we have grown our total managed portfolio from $741 million at the end of 2003 to $1.9 billion at the end of the second quarter 2007." "With respect to the second quarter's financial results, our continued year-over-year pretax income growth validates our execution in growing our total managed portfolio and our ongoing efforts to improve operating efficiencies. Credit performance remains good and within the range of our expectations. In addition, the new residual interest financing facility we recently established provides significant liquidity and additional flexibility to our capital structure." About CPS Consumer Portfolio Services Inc., headquartered in Irvine, California, (NasdaqGM: CPSS) -- http://www.consumerportfolio.com/ -- operates as a specialty finance company in the United States. It engages in purchasing, selling, and servicing retail automobile installment sale contracts originated by licensed motor vehicle dealers and independent dealers in the sale of new and used automobiles, light trucks, and passenger vans. * * * As of July 17, 2007, Consumer Portfolio Services Inc. carries Fitch's CCC- subordinated debt rating. The rating outlook is negative. CREDIT SUISSE: Moody's Puts Low-B Ratings on Two Cert. Classes -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of four classes and confirmed the ratings of four classes of Credit Suisse First Boston Mortgage Securities Corp, Commercial Mortgage Pass-Through Certificates, Series 2005-CND1 as: -- Class A-2, $79,873,370, Floating, confirmed at Aaa -- Class A-X-1, Notional, confirmed at Aaa -- Class A-X-3, Notional, confirmed at Aaa -- Class A-Y, Notional, confirmed at Aaa -- Class B, $16,000,000, Floating, downgraded to Aa3 from Aaa -- Class C, $15,000,000, Floating, downgraded to Baa1 from A2 -- Class D, $22,000,000, Floating, downgraded to Ba1 from Baa3 -- Class E, $4,825,229, Floating, downgraded to Ba2 from Ba1 Since Moody's last review on March 13, 2007 the Marriott Hawaii Hotel Portfolio Loan paid off leaving two loans remaining in the pool - the Royal Palm Hotel Loan (54.2%) and the Hotel 71 Loan (45.8%). Both the Royal Palm, located in the South Beach section of Miami Beach, Florida and Hotel 71, located in the Chicago, Illinois, CBD, are hotel properties that had been financed for acquisition, renovation, and conversion into condo-hotels. Both loans have the same sponsorship, Robert D. Falor and Guy T. Mitchell. In its last review Moody's downgraded Classes C, D and E and placed Classes A-1, A-X-1, A-X-3, A-Y, B, C, D and E on review for possible downgrade due to performance issues related to the Royal Palm and Hotel 71 loans, the foreclosure action initiated by the holder of the Hotel 71 mezzanine loan, and the subsequent Chapter 11 bankruptcy filing by the Hotel 71 mezzanine borrower. No condominium units have closed at either property and both loans were transferred to special servicing for maturity default. The special servicer has commenced a foreclosure action against the Hotel 71 property. The borrowers' efforts to sell both properties have to-date been unsuccessful. Moody's is downgrading Classes B, C, D and E and confirming Classes A-2, A-X-1, A-X-3 and A-Y. CRUM & FORSTER: Moody's Reviews Ba3 Senior Unsecured Debt Rating ---------------------------------------------------------------- Moody's Investor Service placed the Ba3 senior unsecured debt rating of Crum & Forster Holdings Corp. and the Baa3 insurance financial strength ratings of its main operating companies, United States Fire Insurance Company and The North River Insurance Company) under review for possible upgrade. Crum & Forster is a wholly-owned subsidiary of Fairfax Financial Holdings Ltd. whose senior debt is rated Ba3 with a stable outlook. The review for upgrade will focus on the company's prospective profitability, reserve adequacy and risk adjusted capitalization. Over the past several years, the company has re-underwritten its business, reduced exposures and improved its profitability. The review will also focus on the company's significant exposure to catastrophe risk and to continued adverse development of asbestos and environmental liabilities. Moody's notes that Crum & Forster's ratings incorporate its role within the FFH group as a liquidity provider which, in Moody's view, is detrimental to Crum & Forster's ratings. In 2006, Crum & Forster paid about $268 million up to FFH in the form of tax payments and dividends. These ratings were placed on review for possible upgrade: Crum & Forster Holdings Corp. -- senior unsecured debt rating of Ba3; United States Fire Insurance Company -- insurance financial strength rating of Baa3; The North River Insurance Company -- insurance financial strength rating of Baa3. Moody's last rating action on C&F was on April 24, 2007, when a Ba3 rating was assigned to $330 million in senior unsecured notes due 2017. C&F primarily underwrites property and casualty insurance in the United States, with its main lines of business in workers' compensation, property, general liability and commercial automobile insurance. At Dec. 31, 2006, Crum & Forster Holdings Corp. reported net premiums written of $1.2 billion, net income of $312 million, and year-end shareholders' equity of $1.1 billion. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. CWABS ASSET: Moody's Reviews Ratings on 33 Tranches --------------------------------------------------- Moody's Investors Service placed under review for possible downgrade the ratings of thirty-three tranches from eleven deals issued by Countrywide in 2005 and 2006. The collateral backing these classes consists of primarily first-lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were placed under review for possible downgrade based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. Complete rating actions are: Issuer: CWABS Asset-Backed Certificates Trust -- Series 2005-IM1, Class M-6, current rating A3, under review for possible downgrade -- Series 2005-IM1, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2005-IM1, Class B, current rating Ba3, under review for possible downgrade -- Series 2005-IM2, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2005-IM2, Class B, current rating Ba1, under review for possible downgrade -- Series 2005-IM3, Class M-6, current rating A3, under review for possible downgrade -- Series 2005-IM3, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2005-IM3, Class B, current rating Baa2, under review for possible downgrade -- Series 2006-IM1, Class M-6, current rating A3, under review for possible downgrade -- Series 2006-IM1, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2006-IM1, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-IM1, Class B, current rating Baa3, under review for possible downgrade Issuer: CWALT, Inc. Mortgage Pass-Through Certificates -- Series 2005-AR1, Class M-4, current rating A1, under review for possible downgrade -- Series 2005-AR1, Class M-5 current rating A2, under review for possible downgrade -- Series 2005-AR1, Class M-6 current rating A3, under review for possible downgrade -- Series 2005-AR1, Class M-7 current rating Baa2, under review for possible downgrade -- Series 2006-OC1, Class M-6, current rating A3, under review for possible downgrade -- Series 2006-OC1, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2006-OC1, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-OC2, Class M-6, current rating A3, under review for possible downgrade -- Series 2006-OC2, Class. M-7, current rating Baa1, review for possible downgrade -- Series 2006-OC2, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-OC2, Class M-9, current rating Baa3, under review for possible downgrade -- Series 2006-OC3, Class M-7, current rating Baa1, under review for possible downgrade -- Series 2006-OC3, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-OC3, Class M-9, current rating Baa3, under review for possible downgrade -- Series 2006-OC4, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-OC4, Class M-9, current rating Baa3, under review for possible downgrade -- Series 2006-OC4, Class B, current rating Ba1, under review for possible downgrade -- Series 2006-OC5, Class M-8, current rating Baa2, under review for possible downgrade -- Series 2006-OC5, Class M-9; currently Baa3, under review for possible downgrade -- Series 2006-OC6, Class M-8; currently Baa2, under review for possible downgrade -- Series 2006-OC6, Class M-9; currently Baa3, under review for possible downgrade DEERFIELD TRIARC: Closes $300 Mil. Collateralized Loan Transaction ------------------------------------------------------------------ Deerfield Triarc Capital Corp. reported the closing of DFR Middle Market CLO Ltd., a $300 million middle market collateralized loan obligation transaction. The securities issued by the CLO consist of $250 million of investment grade rated notes and $50 million of equity in the form of subordinated notes. A wholly-owned subsidiary of DFR retained all $19 million of the BBB/Baa2 rated notes and all the equity, for a total investment of $69 million. DFR will consolidate the CLO's assets and liabilities for financial reporting purposes. Deerfield Capital Management LLC, DFR's external advisor, will serve as the Collateral Manager for the CLO. Jonathan Trutter, chief executive officer, commented, "We are pleased with DFR's ability to execute this financing despite the current volatility associated with the collateralized debt markets. The closing of this CLO provides the company with long- term match funding that should eliminate any near term funding risk for these investments. This closing also reduces our borrowings under our revolving warehouse facility, thereby freeing up capacity for continued asset growth in our corporate lending portfolio." DFR is an issuer of collateralized debt obligation liabilities and does not, as a core part of its investment strategy, purchase CDO liabilities issued by non-affiliated managers, other than indirectly through its investment in the Pinetree CDO, in which the company's economic risk is limited to its $12 million equity investment. The $231 million investment grade securities issued by the CLO that were sold to third parties are rated AAA/Aaa through A/A2 and have a weighted-average interest rate of three-month LIBOR plus 68.9 basis points. The notes issued by the CLO pay interest on a quarterly basis. The CLO debt matures in 2019, and the CLO indenture provides for a three-year reinvestment period during which the CLO can use the proceeds of repayments of loans included in the collateral to finance new investments to replace collateral that is repaid, subject to certain rating agency guidelines relating to credit quality and diversification. About Deerfield Triarc Deerfield Triarc Capital Corp. is a diversified financial company formed in 2004 to invest in real estate-related securities and various other asset classes. The company intends to continue to qualify to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. The objective is to provide attractive returns to investors through a combination of dividends and capital appreciation, which the company intends to achieve by opportunistically investing in financial assets and to construct an investment portfolio appropriately leveraged to seek attractive risk-adjusted returns. * * * As reported in the Troubled Company Reporter on July 13, 2007, Standard & Poor's Ratings Services assigned its 'BB-' long-term counterparty credit rating to Deerfield Triarc Capital Corp. The outlook is stable. At the same time, S&P assigned 'B' bank loan rating to the company's $155 million senior secured term loan; the recovery rating is '6'. DELPHI CORP: Inks New Plan Framework Agreement with Appaloosa ------------------------------------------------------------- Delphi Corp. has accepted a new proposal for an Equity Purchase and Commitment Agreement with affiliates of lead investor Appaloosa Management L.P.; Harbinger Capital Partners Master Fund I, Ltd.; Merrill Lynch, Pierce, Fenner & Smith Inc.; UBS Securities LLC; Goldman Sachs & Co.; and Pardus Capital Management, L.P., to invest up to $2.55 billion in preferred and common equity in the reorganized Delphi to support the company's transformation plan announced on March 31, 2006 and its plan of reorganization. As reported in the Troubled Company Reporter on July 11, 2007, Delphi formally terminated the Equity Purchase and Commitment Agreement and related Plan Framework Support Agreement it entered into in December 2006 with Cerberus Capital Management, L.P. and other plan investors. Delphi will file motions seeking an expedited hearing and approval of the agreement with the U.S. Bankruptcy Court for the Southern District of New York. The company said the new investment agreement is supported by both of Delphi's Statutory Committees as well as General Motors Corp. "[Wednes]day's equity purchase and commitment agreement -- and the support that it has received from our statutory committees and GM -- represents additional progress in our transformation and provides further evidence to customers and other stakeholders that Delphi should receive the financial support necessary to emerge successfully from Chapter 11 reorganization," said John Sheehan, Delphi chief restructuring officer. "With the recent ratification of the UAW/Delphi/GM memorandum -- still subject to court approval later this week -- Delphi is now focusing on reaching labor agreements with its remaining U.S. unions and finalizing a settlement agreement with GM. We're pleased with our recent momentum. We now expect to file our plan of reorganization before the end of the third quarter and to emerge from Chapter 11 reorganization by the end of the year." "We are happy to have a consensual agreement and are looking forward to working with Delphi in the future," said David A. Tepper, president of Appaloosa. The proposed Equity Purchase and Commitment Agreement, which is subject to Court approval, outlines the terms of the investment and the expected treatment of the company's stakeholders in its anticipated plan of reorganization and provides a framework for several other aspects of the company's Chapter 11 reorganization. The investment agreement also incorporates Delphi's earlier commitment to preserve its salaried and hourly defined benefit U.S. pension plans and will include an arrangement to fund required contributions to the plans that were not made in full during the Chapter 11 process. Equity Investment Under the terms of the Equity Purchase and Commitment Agreement, the Plan Investors will commit to purchase $800 million of convertible preferred stock and approximately $175 million of common stock in the reorganized company. Additionally, the Plan Investors will commit to purchasing any unsubscribed shares of common stock in connection with an approximately $1.6 billion rights offering that will be made available to existing common stockholders subject to approval of the Bankruptcy Court and satisfaction of other terms and conditions. The rights offering would commence following confirmation of Delphi's plan of reorganization and conclude 30 days thereafter prior to Delphi's emergence from Chapter 11 reorganization. Altogether, the Plan Investors could invest up to $2.55 billion in the reorganized company. Unlike the prior terminated investment agreement, closing conditions in the new agreement with the Plan Investors are not subject to the completion of due diligence and the Plan Investors no longer have the ability to make determinations under the agreement in their sole discretion. However, the investment agreement is subject to the satisfaction or waiver of numerous conditions and the non-exercise by either Delphi or the Plan Investors of certain termination rights, all of which are more fully described in the Equity Purchase and Commitment Agreement. Plan of Reorganization Framework The Equity Purchase and Commitment Agreement further outlines Delphi's proposed framework for a plan of reorganization, which includes distributions to be made to creditors and shareholders, the treatment of GM's claims, and the corporate governance of the reorganized company. These provisions had been the subject of a separate plan framework support agreement between Delphi, GM and the plan investors in the earlier terminated transaction. The company previously reported that its discussions with GM on a comprehensive global settlement agreement have entered the documentation phase and that it expected that a settlement with GM will be incorporated into the company's plan of reorganization rather than filed with the Bankruptcy Court for separate approval. The proposed treatment of claims and interests in Delphi's Chapter 11 plan of reorganization is, subject to adjustment for allowed accrued interest after June 30, 2007: -- All senior secured debt would be refinanced and paid in full and all allowed administrative and priority claims would be paid in full. -- Trade and other unsecured claims and unsecured funded debt claims (exclusive of subordinated debt claims) would be satisfied in full with $3.0 billion of common stock (66.7 million out of a total of 147.6 million shares) in the reorganized Delphi, at a deemed value of $45 per share, and approximately $1.2 billion in cash. The framework requires that the amount of allowed trade and unsecured claims (other than funded debt claims and post-petition accrued interest claims) not exceed $1.7 billion. -- In exchange for GM's financial contribution to Delphi's transformation plan, and in satisfaction of GM's claims against the company, GM will receive $2.7 billion in cash, and an unconditional release of any alleged estate claims against GM. In addition, as with other customers, certain GM claims would flow-through the Chapter 11 cases and be satisfied by the reorganized company in the ordinary course of business. The plan framework anticipates that GM's financial contribution to Delphi's transformation plan would be consistent with the items identified in Delphi's former framework agreement announced on Dec. 18, 2006. While the actual value of the potential GM contribution cannot be determined until the Delphi-GM global settlement agreement and master restructuring agreement are finalized, Delphi is aware that GM has publicly estimated its potential exposure related to Delphi's Chapter 11 filing. -- All subordinated debt claims would be allowed and satisfied with $478 million of common stock (10.6 million out of a total of 147.6 million shares) in the reorganized Delphi at a deemed value of $45 per share. -- The equity securities class in Delphi's plan of reorganization would receive: 1) $66 million of common stock (1.5 million out of a total of 147.6 million shares) in the reorganized Delphi (at a deemed value of $45 per share); 2) warrants to purchase an additional 5 percent of the common stock of reorganized Delphi during a five-year period (at an exercise price of $45 per share); 3) rights to purchase approximately 41 million shares of common stock in the reorganized Delphi for $1.6 billion at a deemed exercise price of approximately $38 per share; and 4) rights to purchase $572 million of common stock (at an exercise price of $45 per share), which will result in adjustments to the stock and cash distributions to be made to the unsecured creditors and Appaloosa. Delphi cautioned that nothing in the plan investment agreement, the Court or regulatory filings being made in connection with the agreements or the company's public disclosures (including this press release) shall be deemed a solicitation to accept or reject a plan in contravention of the Bankruptcy Code nor an offer to sell or a solicitation of an offer to buy any securities of the company. Emergence Corporate Governance Structure The Equity Purchase and Commitment Agreement also includes certain corporate governance provisions for the reorganized Delphi. Under the terms of the proposed plan, the reorganized Delphi would be governed by a nine-member Board of Directors including an Executive Chairman and the company's CEO. Subject to certain conditions, a majority of the directors (6 of 9) would be required to be independent of reorganized Delphi under applicable exchange rules and independent of the Plan Investors. A five-member selection committee will select the company's post- emergence Executive Chairman, have veto rights over all directors nominated by the plan investors and statutory committees, and appoint directors to all Board committees. The selection committee will consist of John D. Opie, Delphi Board of Directors' lead independent director, a representative of each of Delphi's two statutory committees and a representative from Appaloosa and one of the other co-investors. Appaloosa, through its proposed Series A-1 preferred stock ownership, would have certain veto rights regarding extraordinary corporate actions such as change of control transactions and acquisitions or investments in excess of $250 million in any twelve-month period. Executive compensation for the reorganized company must be on market terms, must be reasonably satisfactory to the lead plan investor, and the overall executive compensation plan design must be described in the company's disclosure statement and incorporated into the plan of reorganization. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. EAST VALLEY: Moody's Rates $290 Million Senior Secured Notes at B1 ------------------------------------------------------------------ Moody's Investors Service assigned a B1 (LGD-4, 56%) rating to the East Valley Tourist Development Authority's $290 million senior secured notes. The Authority is an instrumentality of the Cabazon Band of Mission Indians, a federally recognized Indian tribe. The Authority was formed to operate the Tribe's resort and casino business. Proceeds from the new note offering will be used to redeem the Authority's 2003A tax-exempt bonds, repay debt owed to the Tribe that was used for casino development, reimburse the Tribe for expenditures related to the golf course, make a distribution to the Tribe, repay other long-term debt and current liabilities, pay fees & expenses, and add $30 million of cash to its balance sheet to help fund planned expansion activity. The rating considers the Authority's high pro forma leverage (about 6.4x debt/EBITDA), its small single asset profile, and the significant amount of competition already operating in its primary and secondary market areas. Also considered is that the floating rate portion of the note offering will be initially exposed to interest rate risk. While the Authority intends to enter into one or more hedge, swap or similar agreements to manage the risk of rising interest rates on the floating rate notes, it does not have any current plan or agreement to do so. Positive rating consideration is given to the Authority's good historical performance in terms of growth trends and operating margins. The Authority's net revenue grew at a 19% cumulative average growth rate since 2005 and EBITDA margins improved to 37% from 35% over that same time period. Also considered are the favorable demographics and growth trends of the Southern California gaming market. The stable rating outlook considers the good risk reward profile of the Authority's planned expansion projects. It also takes into account the expectation that cash flow growth from the Authority's existing casino asset along with the cash flow contribution from its new expansion projects will result in positive free cash flow and a gradual reduction in leverage over the next several years. In addition, the stable outlook considers that the material weakness findings arising during the recent audit of the Authority's financial statements will be non-recurring in nature and will not have an impact on credit quality going forward. Ratings improvement is limited at this time given the expectation that it will take several years before debt/EBITDA drops below 5x. Longer-term ratings improvement is possible to the extent the Authority demonstrates the ability and willingness to sustain debt/EBITDA below 5x. If a gradual reduction in leverage does not occur at the pace currently anticipated as a result of competitive pressure and/or lower than expected returns from planned expansions projects, ratings could be negatively impacted. The new notes will be senior secured obligations of the Authority and rank pari passu in right of payment with all other senior debt, and will be senior in right of payment to all subordinated and senior subordinated debt. The notes will be secured by a first priority pledge of the revenues of Authority's resort and casino business, and other properties and related amenities other than assets that specifically secure allowable FF&E financing. The Authority currently owns and operates the Fantasy Springs Casino located in the Coachella Valley approximately 22 miles east of Palm Springs, California. Fantasy Springs opened in 1990. For the fiscal year ended March 31, 2007, the Authority generated about $130 million of net revenue. EDGEWATER FOODS: Posts Net Loss of $464,685 in Qtr. Ended May 31 ---------------------------------------------------------------- Edgewater Foods International Inc. reported a net loss of $464,685 on revenue of $128,925 for the third quarter ended May 31, 2007, compared with a net loss of $2.9 million on revenue of $133,120 for the same period ended May 31, 2006. Results for the three months ending May 31, 2006, included a loss of approximately $2.5 million which was related to the change in the fair value of warrants issued to 10 institutional and accredited investors in conjunction with preferred stock financings on April 12, May 30, June 30, July 11, 2006, and Jan. 16, 2007, and the market price of the common stock underlying such warrants. No such gain or loss was recorded for the period ended May 31, 2007. Gross loss for the three months ended May 31, 2007, was approximately $58,000, an increase of approximately $20,000 as compared to gross loss of roughly $38,000, for the three months ended May 31, 2006. The increase in the amount of gross loss for this quarter was mainly attributable to the slower than anticipated start to the 2005 class of scallops' harvest. General and administrative expenses increased to approximately $333,000 for the quarter ended May 31, 2007, compared to approximately $287,000 for the three months ended May 31, 2006. Interest expense for the three months ended May 31, 2007, was approximately $2,000. Interest expense for the three months ending May 31, 2006, was approximately $54,000. The decrease in interest expense was mainly due to repayment of a large short term note in the third quarter of 2006. At May 31, 2007, the company's consolidated financial statements showed $7.1 million in total assets, $1.9 million in total liabilities, and $5.2 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended May 31, 2007, are available for free at http://researcharchives.com/t/s?219f Going Concern Doubt LBB & Associates Ltd. LLP in Houston, expressed substantial doubt about Edgewater Foods International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Aug. 31, 2006. The auditing firm pointed to the company's recurring operating losses since inception. About Edgewater Foods Based in Qualicum Beach, B.C., Edgewater Foods International Inc. (OTC BB: EDWT.OB) -- http://www.edgewaterfoods.com/-- is the parent company of Island Scallops Ltd., a Vancouver Island aquaculture company. ISL was established in 1989 and for over 15 years has operated a scallop farming and marine hatchery business. ENTERPRISE GP: Moody's Rates Proposed $1.2 Billion Loan at Ba2 -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 (LGD5 -- 89%) rating to EPCO Holdings Inc.'s proposed $1.7 billion senior secured credit facility and a Ba2 (LGD5 -- 89%) rating to Enterprise GP Holdings L.P.'s proposed $1.2 billion senior secured credit facility. These facilities will refinance bridge credit facilities put in place following EPE's acquisition of an interest in Energy Transfer Equity, L.P. in May. Moody's also assigned a Ba1 Corporate Family Rating to EPCO, which is a privately held Houston-based company owned by Dan Duncan and his family. EPE is a publicly traded midstream energy master limited partnership. EPCO and EPE own, either directly or indirectly, general partner interests and limited partner interests in Enterprise Products Partners L.P., TEPPCO Partners, L.P. and Energy Transfer Equity, L.P. The rating outlook for both EPCO and EPE is negative. EPCO's Ba1 CFR considers the assets, operations, cash flow and leverage of the EPCO family of companies, which primarily reflects Enterprise and TEPPCO. The CFR also considers the diversification benefits of owning interests in multiple MLPs that are in different business segments. However, EPCO's CFR is one notch lower than the Baa3 senior unsecured ratings at Enterprise, EPD issues debt through its operating subsidiary Enterprise Products Operating L.P., and TEPPCO because of additional debt at EPE and EPCO. This results in higher overall leverage of the EPCO family relative to the leverage at either EPD or TPP on a standalone basis. While the debt at each of these four companies is non-recourse to the other companies, Moody's evaluates them together because of the control provided through the partnership structure. In addition, all of the debt is ultimately supported by cash flow generated by EPD and TPP, either directly at the operating companies or indirectly through distributions to EPE and EPCO. For the twelve months ended March 31, 2007, the combined companies' total debt was $9.1 billion, implying debt/EBITDA of 5.2x, compared to 4.2x at both EPD and TPP for the same period. Adding an additional $1.65 billion of debt used to acquire interests in ETE in May, Moody's estimates that total family debt/EBITDA increased to 5.9x, while FFO/debt dropped to 12.6% from 14.9%. Pro forma for EPE's $750 million equity offering, EPD's $700 million hybrid offering, TPP's $300 million hybrid offering, Moody's estimates these values changed to 5.3x and 13.9%, respectively. EPE's Ba2 senior secured debt rating fundamentally reflects the underlying credit strength of EPD, TPP and, to a lesser extent, ETE. EPE owns the GP and 3% of the common units of EPD and the GP and 4.8% of the common units of TPP. EPE also owns 17.4% of the common units of ETE and 35% of ETE's GP. Based on current distribution rates, EPE receives 57% of its cash flow from EPD, 22% from TPP and 21% from ETE. The Ba2 rating contemplates continued consistent distributions from these MLPs to service EPE's debt. However, the Ba2 rating is two notches lower than the senior unsecured ratings of both EPD and TPP, which provide about 80% of EPE's cash flow. This difference in ratings considers that EPE creditors are taking equity risk through reliance on EPD, TPP and ETE distributions and EPE debt holders are structurally subordinated to EPD, TPP and ETE creditors. Likewise, EPCO's Ba2 senior secured debt rating reflects the fundamental credit strength of EPD and TPP, as well as the residual credit capacity at EPE. EPCO owns 30% of the common units of EPD, 13% of the common units of TPP and 77% of the common units of EPE. EPCO receives 59% of its cash flow from its EPD interests, 8% from TPP and 33% from EPE. EPCO is rated the same at EPE, even though it is structurally subordinate to EPE, because two-thirds of its cash flow comes directly from its common unit ownership interests in EPD and TPP. EPCO's $1.7 billion senior secured credit facility consists of a $300 million 5-year revolving credit facility, a $500 million 5- year term loan A and a $900 million 7-year term loan B. The facility is secured by substantially all of its assets including its ownership holdings in EPD, TPP and EPE. The facility has one financial covenant: debt/EBITDA no greater than 5.5x. EPE's $1.2 billion senior secured credit facility consists of a $200 million 5-year revolving credit facility and a $1 billion 7-year term loan. The facility is secured by substantially all of EPE's assets consisting of its membership interests in EPD's and TPP's GPs and the common units it holds in EPD, TPP and ETE. The EPE facility stipulates that debt/EBITDA shall be no greater than 5.75x. The negative outlooks at EPCO and EPE reflect the negative outlooks at Enterprise and TEPPCO. EPD's and TPP's outlooks were changed to negative from stable in May following EPE's $1.65 billion acquisition of interests in ETE resulting in higher family leverage. These actions further reflect an aggressive growth strategy at EPD and TPP as well as the additional complexity resulting from the transaction and the commensurate corporate governance issues. EPCO's and EPE's rating outlooks could return to stable once family leverage consistently improves such that debt/EBITDA is below 5.5x and FFO/debt is above 14%, and there is no deterioration in EPD's or TPP's underlying credit profile. EPCO Holdings Inc. and Enterprise GP Holdings L.P. are headquartered in Houston, Texas. EPCO HOLDINGS: Moody's Rates Proposed $1.7 Billion Loan at Ba2 -------------------------------------------------------------- Moody's Investors Service assigned a Ba2 (LGD5 -- 89%) rating to EPCO Holdings Inc.'s proposed $1.7 billion senior secured credit facility and a Ba2 (LGD5 -- 89%) rating to Enterprise GP Holdings L.P.'s proposed $1.2 billion senior secured credit facility. These facilities will refinance bridge credit facilities put in place following EPE's acquisition of an interest in Energy Transfer Equity, L.P. in May. Moody's also assigned a Ba1 Corporate Family Rating to EPCO, which is a privately held Houston-based company owned by Dan Duncan and his family. EPE is a publicly traded midstream energy master limited partnership. EPCO and EPE own, either directly or indirectly, general partner interests and limited partner interests in Enterprise Products Partners L.P., TEPPCO Partners, L.P. and Energy Transfer Equity, L.P. The rating outlook for both EPCO and EPE is negative. EPCO's Ba1 CFR considers the assets, operations, cash flow and leverage of the EPCO family of companies, which primarily reflects Enterprise and TEPPCO. The CFR also considers the diversification benefits of owning interests in multiple MLPs that are in different business segments. However, EPCO's CFR is one notch lower than the Baa3 senior unsecured ratings at Enterprise, EPD issues debt through its operating subsidiary Enterprise Products Operating L.P., and TEPPCO because of additional debt at EPE and EPCO. This results in higher overall leverage of the EPCO family relative to the leverage at either EPD or TPP on a standalone basis. While the debt at each of these four companies is non-recourse to the other companies, Moody's evaluates them together because of the control provided through the partnership structure. In addition, all of the debt is ultimately supported by cash flow generated by EPD and TPP, either directly at the operating companies or indirectly through distributions to EPE and EPCO. For the twelve months ended March 31, 2007, the combined companies' total debt was $9.1 billion, implying debt/EBITDA of 5.2x, compared to 4.2x at both EPD and TPP for the same period. Adding an additional $1.65 billion of debt used to acquire interests in ETE in May, Moody's estimates that total family debt/EBITDA increased to 5.9x, while FFO/debt dropped to 12.6% from 14.9%. Pro forma for EPE's $750 million equity offering, EPD's $700 million hybrid offering, TPP's $300 million hybrid offering, Moody's estimates these values changed to 5.3x and 13.9%, respectively. EPE's Ba2 senior secured debt rating fundamentally reflects the underlying credit strength of EPD, TPP and, to a lesser extent, ETE. EPE owns the GP and 3% of the common units of EPD and the GP and 4.8% of the common units of TPP. EPE also owns 17.4% of the common units of ETE and 35% of ETE's GP. Based on current distribution rates, EPE receives 57% of its cash flow from EPD, 22% from TPP and 21% from ETE. The Ba2 rating contemplates continued consistent distributions from these MLPs to service EPE's debt. However, the Ba2 rating is two notches lower than the senior unsecured ratings of both EPD and TPP, which provide about 80% of EPE's cash flow. This difference in ratings considers that EPE creditors are taking equity risk through reliance on EPD, TPP and ETE distributions and EPE debt holders are structurally subordinated to EPD, TPP and ETE creditors. Likewise, EPCO's Ba2 senior secured debt rating reflects the fundamental credit strength of EPD and TPP, as well as the residual credit capacity at EPE. EPCO owns 30% of the common units of EPD, 13% of the common units of TPP and 77% of the common units of EPE. EPCO receives 59% of its cash flow from its EPD interests, 8% from TPP and 33% from EPE. EPCO is rated the same at EPE, even though it is structurally subordinate to EPE, because two-thirds of its cash flow comes directly from its common unit ownership interests in EPD and TPP. EPCO's $1.7 billion senior secured credit facility consists of a $300 million 5-year revolving credit facility, a $500 million 5- year term loan A and a $900 million 7-year term loan B. The facility is secured by substantially all of its assets including its ownership holdings in EPD, TPP and EPE. The facility has one financial covenant: debt/EBITDA no greater than 5.5x. EPE's $1.2 billion senior secured credit facility consists of a $200 million 5-year revolving credit facility and a $1 billion 7-year term loan. The facility is secured by substantially all of EPE's assets consisting of its membership interests in EPD's and TPP's GPs and the common units it holds in EPD, TPP and ETE. The EPE facility stipulates that debt/EBITDA shall be no greater than 5.75x. The negative outlooks at EPCO and EPE reflect the negative outlooks at Enterprise and TEPPCO. EPD's and TPP's outlooks were changed to negative from stable in May following EPE's $1.65 billion acquisition of interests in ETE resulting in higher family leverage. These actions further reflect an aggressive growth strategy at EPD and TPP as well as the additional complexity resulting from the transaction and the commensurate corporate governance issues. EPCO's and EPE's rating outlooks could return to stable once family leverage consistently improves such that debt/EBITDA is below 5.5x and FFO/debt is above 14%, and there is no deterioration in EPD's or TPP's underlying credit profile. EPCO Holdings Inc. and Enterprise GP Holdings L.P. are headquartered in Houston, Texas. FIRST HORIZON: Fitch Junks Ratings on Two Certificate Classes ------------------------------------------------------------- Fitch Ratings takes rating actions on these First Horizon Home Loan Mortgage Trust issues: Series 2006-AA3: -- Class A affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 rated 'BBB' is placed on Rating Watch Negative; -- Class B4 downgraded to 'B+' from 'BB'; -- Class B5 downgraded to 'CCC' from 'B' and assigned distressed recovery rating of 'DR1'. Series 2006-FA2: -- Class A affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 rated 'BBB' is placed on Rating Watch Negative; -- Class B4 downgraded to 'B+' from 'BB' and placed on Rating Watch Negative; -- Class B5 downgraded to 'CCC' from 'B' and assigned distressed recovery rating of 'DR2'. The mortgage loans consist of conventional, fully amortizing, adjustable-rate, as well as conventional, fully amortizing, fixed- rate mortgage loans secured by first liens on single-family residential properties. As of the June 2007 distribution date, the transactions are 13 and 15 months seasoned and the pool factors are 0.73% and 0.81%, respectively. These transactions are serviced by First Horizon Home Loan Corporation, rated 'RPS2' by Fitch. The affirmations reflect credit enhancement consistent with future loss expectations and affect approximately $554 million of outstanding certificates. All classes in the transactions detailed above have experienced small to moderate growth in CE since closing. The negative rating actions, affecting approximately $10.8 million of outstanding certificates, reflect deterioration in the relationship between CE and expected losses. Approximately 4.76% of the current collateral balance for series 2006-AA3 is more than 60 days delinquent. This includes bankruptcy, foreclosures and real estate owned of 0.51%, 2.10% and 0.38%, respectively. The credit enhancement for the B-3, B-4 and B-5 classes is 1.60%, 0.92% and 0.37%, respectively. For series 2006-FA2, approximately 2.71% of the current collateral balance is more than 60 days delinquent. This includes foreclosures and real estate owned of 1.70% and 0.30%, respectively. The credit enhancement for the B-3, B-4 and B-4 classes is 1.22%, 0.73% and 0.37%, respectively. FORD MOTOR: Tata Motors Eyes Jaguar & Land Rover ------------------------------------------------ Indian carmaker Tata Motors is in the early stages of evaluating a bid for Jaguar and Land Rover, which, if successful, could potentially be one of India's biggest overseas takeover deals, The Daily Telegraph relates. According to the report, Tata Motors has instructed advisers to study the merits of a joint offer for the two brands, which Ford Motor Company recently put on the block. People familiar with the matter say, however, that Tata Motors' evaluation of a bid was at an "exploratory" stage and may not lead to a formal offer. One source said that Tata Motors had recently signed a confidentiality agreement with Ford. A spokesman for Tata Motors said the group did "not comment on speculation about mergers and acquisitions," The Telegraph notes. About Tata Motors India's largest automobile company, Tata Motors Limited -- http://www.tatamotors.com/-- is mainly engaged in the business of automobile products consisting of all types of commercial and passenger vehicles, including financing of the vehicles sold by the Company. The Company's operating segments consists of Automotive and Others. In addition to its automotive products, it offers construction equipment, engineering solutions and software operations. Tata Motors has operations in Russia, and the United Kingdom. About Ford Motor Co. Headquartered in Dearborn, Mich., Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * To date, Ford Motor Company still carries Standard & Poor's Ratings Services 'B' long-term foreign and local issuer credit ratings and negative ratings outlook. At the same time, the company carries Moody's Caa1 issuer and senior unsecured debt ratings and negative ratings outlook. FRENCH VALLEY: Seeks to Obtain $24.75 Million in DIP Financing -------------------------------------------------------------- French Valley Commercial Partners LLC asks the United States Bankruptcy Court for the Central District of California for permission to borrow up to $24,750,000 in postpetition secured financing facility arranged by Freestand Financial Holding Corporation. The Debtor tells the Court that it is developing a 161 acres of land located at Calistoga Road and Promontory Road in Murrieta, California. Louis L. Esbin, Esq., at Law offices of Louis J. Esbin, says that The Debtor's property is not generating income except for $900 paid annually by a goat herder. The DIP Facility will incur interest at 3.5% above floating, minimum of 12 months of interest payable. To secure repayment of the DIP Obligations, Freestand Financial's loan will be secured by a first deed of trust against the Debtor's 161 acres of real property in Murrieta, California. The Court will convene a hearing on Aug. 13, 2007, at 10:00 a.m., at 21041 Burbank Blvd. in Courtroom 302 in Woodland Hills, California to consider the Debtor's request. Headquartered in Agoura Hills, California, French Valley Commercial Partners, LLC, is a real estate developer. The company filed for Chapter 11 protection on Feb. 20, 2007 (Bankr. C.D. Ca. Case No.: 07-10526). Louis J. Esbin, Esq., at Law Offices Of Louis J. Esbin, represents they Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtor filed for bankruptcy, it listed total assets of $35,060,500 and total debts of $16,713,352. FRONTIER DRILLING: S&P Affirms Corporate Credit Rating at B- ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on Frontier Drilling ASA, a drillship and floating production storage and offloading operator. At the same time, S&P raised its 'B' rating on Frontier Drilling's $350 million senior secured credit facilities, after the proposed $25 million add-on, to 'B' from 'B-'. S&P affirmed the '2' recovery rating, which indicates substantial (70%-90%) recovery of principal in the event of a payment default. The first-lien facilities now consist of a $60 million revolving credit facility and $290 million term loan B. S&P assigned a 'CCC' issue rating and '6' recovery rating, indicating negligible (0%-10%) recovery in the event of payment default, to the proposed $100 million second-lien term loan. Ratings are based on preliminary terms and conditions. The outlook is stable. Frontier Drilling will use proceeds from the new financings to fund higher-than-expected costs on the recently completed Discoverer drillship upgrade and ongoing Deepwater drillship upgrade project and to prefund planned dry-docking and maintenance costs for the FPSO Seillean. The Seillean is expected to be in the yard for 90 days starting in the third quarter of 2008 for its periodic statutorily required class survey and for equipment replacement (estimated costs are $38 million). Pro forma the new financings, Bergen, Norway-based Frontier Drilling will have about $530 million in total debt (including $141 million in outstanding pay-in-kind [PIK] subordinated securities that Standard & Poor's treats as debt-like). "The ratings on Frontier Drilling reflect a highly leveraged financial risk profile, a limited number of currently operating offshore units, rising upgrade project costs, and weak credit metrics," said Standard & Poor's credit analyst Jeffrey Morrison. These concerns are not fully offset by Frontier Drilling's favorable intermediate-term backlog of contract revenues, successful completion of the Discover upgrade project, consistent operating and cash flow performance from the Seillean and Duchess offshore units over the past year, and adequate near-term liquidity. The stable outlook reflects S&P's expectation that Frontier Drilling will maintain adequate near-to-intermediate-term liquidity to fund spending associated with its Deepwater upgrade project, planned maintenance and drydock costs for the Seillean in 2008, and to service debt. Positive ratings actions will be limited until Frontier Drilling can complete its Deepwater upgrade and begin to deleverage in late 2008. Conversely, we could take negative rating actions if the company faces additional sizable near-term cost overruns, significant project delays, or operating issues that constrain liquidity. GATEHOUSE MEDIA: Commences Public Offering of 17 Million Shares --------------------------------------------------------------- GateHouse Media Inc. disclosed its follow-on public offering of 17,000,000 shares of common stock priced at $18.45 per share. GateHouse Media also granted the underwriters an option to purchase up to an additional 1,700,000 shares of common stock. Goldman Sachs & Co., Wachovia Capital Markets, LLC and Morgan Stanley & Co. Incorporated are acting as joint book running managers and as representatives for the underwriters of this offering, with Bear, Stearns & Co. Inc., BMO Capital Markets Corp., Allen & Company LLC and Lazard Capital Markets LLC acting as co-managers. A registration statement relating to these securities was declared effective as of July 17, 2007, by the Securities and Exchange Commission. Copies of the written prospectus related to the offering may be obtained from: a) Goldman, Sachs & Co. Prospectus Department 85 Broad Street New York, NY 10004 Fax (212) 902-9316 b) Wachovia Securities Prospectus Department 375 Park Avenue New York, NY 10152 c) Morgan Stanley & Co. Incorporated Prospectus Department 180 Varick Street, 2nd Floor New York, NY 10014 Telephone (866) 718-1649 About GateHouse Media Headquartered in Fairport, New York, GateHouse Media Inc. (NYSE: GHS) -- http://www.gatehousemedia.com/-- is a publisher of locally based print and online media in the U.S. as measured by its 87 daily publications. The company currently serves local audiences of more than 10 million per week across 20 states through hundreds of community publications and local websites. As of March 31, 2007, Fortress Investment Group LLC beneficially owned approximately 57.8% of the company's outstanding common stock. * * * As reported in the Troubled Company Reporter on March 20, 2007, Moody's placed ratings of GateHouse Media Operating Inc. under review including the company's $40 million senior secured first lien revolving credit facility, due 2014 -- B1; $670 million senior secured term loan B, due 2014 -- B1; $250 million senior secured delayed draw term loan, due 2014 -- B1; Corporate Family rating -- B1; and Probability of Default rating -- B2. GE CAPITAL: Moody's Downgrades Class B2 Certificates Rating to B2 ----------------------------------------------------------------- Moody's Investors Service downgraded one certificate issued by GE Capital Mortgage Services, Series 1999-HE2. The underlying assets in the transaction consists of fixed-rate, first- and second-lien subprime residential mortgage loans. The Class B2 certificate of this transaction is being downgraded based upon recent losses and diminishing credit enhancement levels relative to the current projected losses on the underlying pools. Complete rating action is: Issuer: GE Capital Mortgage Services Inc., Series 1999-HE2 -- Class B2; Downgraded to B2, Previously Ba2. GMAC COMMERCIAL: Fitch Affirms Rating on Class O-2 Certs. at B -------------------------------------------------------------- Fitch upgrades GMAC commercial mortgage pass-through certificates, series 2002-C3, as: -- $9.7 million class F to 'AAA' from 'AA+'; -- $9.7 million class G to 'AA' from 'AA-'; -- $9.7 million class H to 'A+' from 'A'. Fitch also affirms these classes: -- $139.8 million class A-1 at 'AAA'; -- $406.4 million class A-2 at 'AAA'; -- Interest-only class X-1 at 'AAA'; -- Interest-only class X-2 at 'AAA'. -- $29.2 million class B at 'AAA'; -- $11.7 million class C at 'AAA'; -- $18.5 million class D at 'AAA'; -- $11.7 million class E at 'AAA'; -- $18.5 million class J at 'BBB+'; -- $8.7 million class K at 'BBB'; -- $5.8 million class L at 'BBB-'; -- $4.9 million class M at 'BB+'; -- $3.9 million class N at 'BB'; -- $2.7 million class O-1 at 'B+'; -- $1.2 million class O-2 at 'B'. Fitch does not rate $17.3 million class P. The rating upgrades reflect the increased credit enhancement due to loan payoffs, scheduled amortization and the additional defeasance of 8 loans (10.1%) since Fitch's last rating action. In total, twenty loans (26.3%) have defeased, including three (10.1%) of the top five loans. As of the July 2007 distribution date, the pool has paid down 8.8% to $709.3 million from $777.4 million at issuance. There is currently one asset (2.2%) in special servicing. The asset is a multifamily property consisting of 10 buildings of primarily student housing located in Talahassee, FL that is currently real estate owned. A new property management company has taken over daily operations at the property. They are actively advertising the property for the Fall 2007 semester. Losses on this asset are expected to be absorbed by the non-rated class P. One loan (1.4%), secured by a 170-unit hotel property, is located in New Orleans, LA and suffered damage as a result of Hurricane Katrina. Per the master servicer, all units are back on-line and repairs have been completed. As of March 2007, the property was 60% occupied. GRANDE COMMS: Gets Required Consents to Issue $25 Mil. Sr. Notes ---------------------------------------------------------------- Grande Communications Holdings, Inc., received the consent of holders of a majority of the aggregate principal amount of its 14% senior secured notes due 2011 outstanding as of the close of business on June 1, 2007, the record date for the consent solicitation, to amend the indebtedness covenant of the Indenture governing the terms of the senior secured notes to permit the issuance of an aggregate principal amount of $25 million of additional senior secured notes. As a result, the consent solicitation period expired at the close of business July 17, 2007, in accordance with the terms of the Consent Solicitation Statement. Requests for documents and other information related to the consent solicitation may be directed to: Grande Communication Holdings Attention: Michael Wilfley 401 Carlson Circle San Marcos, Texas 78666 Telephone (512) 878-4000 Headquartered in San Marcos, Texas, Grande Communications Holdings Inc. -- http://www.grandecom.com/-- is a communications company providing residential and business customers with high-speed Internet, local and long-distance telephone and digital cable services over a single network. * * * As reported in the Troubled Company Reporter on July 18, 2007, Standard & Poor's Ratings Services affirmed its ratings on San Marcos, Texas-based cable TV over-builder and communications provider Grande Communications Holdings Inc., including the 'B-' corporate credit rating, 'B-' secured note rating, and '4' recovery rating. The outlook is stable. HANCOCK FABRICS: Court Extends Lease Rejection Deadline to Oct. 17 ------------------------------------------------------------------ The United States Bankruptcy Court for the District of Delaware has granted the request of Hancock Fabrics Inc. and its debtor- affiliates for the extension of the deadline by which the Debtors must assume or reject non-residential real property leases through and including October 17, 2007. As of March 21, 2007, the Debtors were party to approximately 438 leases of non-residential real property. The Debtors also rejected 11 leases. Thomas F. Driscoll III, Esq., at Morris, Nichols, Arsht & Tunnell LLP, in Wilmington, Delaware, related that since March 21, 2007, the Debtors have rejected an additional 16 leases, and one lease has expired by its own terms. Thus, he says, the Debtors are currently party to 411 unexpired leases. Mr. Driscoll added that the Debtors are in the process of marketing 120 of the leases. In addition, the Debtors are evaluating whether to undertake going-out-of-business or lease sales at additional locations. The Debtors seek to maximize the value of their estates for the benefit of their stakeholders. To date, the Debtors have focused their primary efforts on the tasks and disposition of the Sale Leases. Pursuant to Section 365(d)(4)(A) of the Bankruptcy Code, the current deadline for the Debtors to assume or reject the leases is July 19, 2007. The requested extension will allow the Debtors time to evaluate the leases in the context of a business plan, as well as a longer term plan to emerge from their cases and to maximize value for the benefit of their estates and stakeholders, Mr. Driscoll maintained. About Hancock Fabrics Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and 6 of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. When the Debtors filed for protection from their creditors, they listed $241,873,900 in total assets and 161,412,000 in total liabilities. The Debtors exclusive period to file a chapter 11 plan expires on July 19, 2007. (Hancock Fabric Bankruptcy News, Issue No. 13, http://bankrupt.com/newsstand/or 215/945-7000). HANCOCK FABRICS: Court Approves Sale Amendment with Fauntleroy -------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware has granted the request of Hancock Fabrics Inc. and its debtor- affiliates for the approval of a new lease agreement on the property where Debtors' Store No. 1087 is located, and the amendment of previously entered into sale agreements for the sale of Debtors' property that is currently being operated as a parking lot servicing Store No. 1087. On Jan. 15, 1964, Fauntleroy Place, LLC, leased to the Debtors a non-residential real property at 3922 SW Alaska Street, in Seattle, Washington, which is the location of Debtors' Store No. 1087. Adjacent to this property is the property owned in fee simple by the Debtors that is currently being operated as a parking lot servicing Store No. 1087. The Property and the Parking Lot are currently separated by a publicly owned alley. Thomas F. Driscoll III, Esq., at Morris, Nichols, Arsht & Tunnel, LLP, in Wilmington, Delaware, recounted that for several years, Fauntleroy Place has sought to redevelop the Property and the Parking Lot, which project includes construction of four floors of underground parking, a floor of retail, a floor that is part retail and part residential, and above that four floors of residential space. The Project will be built on the combined land of the Property, the Parking Lot and the Alley. Mr. Driscoll related that the Debtors and Fauntleroy previously entered into agreements for the sale of the Parking Lot to Fauntleroy, including a January 2005 Real Estate Purchase and Sale Agreement and an Amended and Restated Real Estate Purchase and Sale Agreement, dated January 11, 2006, as amended by various letter agreements. Fauntleroy has also petitioned the local government of Seattle regarding vacation of the Alley and approval of the Project. In conjunction with the Project, the new lease with Fauntleroy would allow the Debtors to operate a store in the completed Project. In November 2006, the parties entered into a Sale Agreement, which provides for the Debtors' sale of their Parking Lot to Fauntleroy for $2,200,000. As compensation to the Debtors for the period during which they will not be able to operate Store No. 1087 due to construction of the Project, Fauntleroy has agreed to pay the Debtors $1,025,000, to be paid at closing. The parties further amended the Sale Agreement to provide that: (i) the closing will occur 30 days after Fauntleroy has obtained approval of the vacation of the Alley and issuance of permits for construction of the Project, such that closing will not occur later than August 28, 2007; and (ii) the title company requires Court approval of the sale of the Parking Lot. In connection with the Sale Agreement Amendment, the Debtors and Fauntleroy negotiated a lease amendment, which grants the Debtors rights to use the Parking Lot following its sale and prior to termination of the Lease. The Debtors will be responsible for the maintenance of the Parking Lot. Following the completion of the Project, the Debtors seek to rent from Fauntleroy certain premises that are part of the Project for the operation of the New Store. The new lease shall contain the following terms: (a) The Debtors will lease premises containing approximately 13,741 square feet after the completion of the Project. (b) The Existing Lease will terminate 90 days after the Debtors receive notice that Fauntleroy has received the necessary permits for construction of the Project. (c) Fauntleroy will commence the Project 10 days after the termination date of the Existing Lease. (d) Fauntleroy will construct and finish out the New Premises. (e) Fauntleroy will complete the Project and the Remodeling Work within 15 months of the commencement date, to be extended as needed, or else the Debtors may terminate the New Lease. (f) The term of the New Lease will commence on the first to occur of (i) the 30th day following completion of the Project and the Remodelling Work, or (ii) the day the Debtors open their store for business on the New Premises, and will continue for about 10 years. (g) The Debtors may extend the New Lease for four successive extended terms of five years each by giving Fauntleroy a written notice 120 days before the end of the original or applicable extended term. (h) The Debtors will pay $9,161 as gross monthly rent under the New Lease. About Hancock Fabrics Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc. (OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty retailer of a wide selection of fashion and home decorating textiles, sewing accessories, needlecraft supplies and sewing machines. Hancock Fabrics is one of the largest fabric retailers in the United States, currently operating approximately 400 retail stores in approximately 40 states. The company employs approximately 7,500 people on a full-time and part-time basis. Most of the company's employees work in its retail stores, or in field management to support its retail stores. The company and 6 of its debtor-affiliates filed for chapter 11 protection on March 21, 2007 (Bankr. D. Del. Lead Case No. 07-10353). Robert J. Dehney, Esq., at Morris, Nichols, Arsht & Tunnell, represent the Debtors. When the Debtors filed for protection from their creditors, they listed $241,873,900 in total assets and 161,412,000 in total liabilities. The Debtors exclusive period to file a chapter 11 plan expires on July 19, 2007. (Hancock Fabric Bankruptcy News, Issue No. 13, http://bankrupt.com/newsstand/or 215/945-7000). HEALTH CARE: Offering $350 Million of Convertible Senior Notes -------------------------------------------------------------- Health Care REIT Inc. is offering $350 million aggregate principal amount of Convertible Senior Notes due 2027. The notes will be convertible into a combination of cash and Health Care REIT common stock. In general, upon conversion, the holder of each note would receive the conversion value of such note, cash up to the principal amount of such note and Health Care REIT common stock for the note's conversion value in excess of such principal amount. Health Care REIT is granting the underwriters a 30-day option to purchase up to an additional $52.5 million of the Convertible Senior Notes to cover over allotments. The notes will be registered under Health Care REIT's existing shelf registration statement on file with the Securities and Exchange Commission. Health Care REIT intends to use the net proceeds from the offering to invest in additional properties. Pending such use, the proceeds will be used to repay borrowings under Health Care REIT's unsecured line of credit arrangements. The joint-bookrunning managers for the offering are UBS Investment Bank and Banc of America Securities LLC. A copy of the preliminary prospectus supplement and related prospectus relating to the proposed offering may be obtained by contacting: UBS Investment Bank Prospectus Department 299 Park Avenue New York, NY 10171 or Banc of America Securities LLC Attention: Equity Capital Markets Operations 100 West 33rd Street, 3rd Floor New York, NY 10001 About Health Care REIT Inc. Headquartered in Toledo, Ohio, Health Care REIT Inc. (NYSE:HCN) - http://www.hcreit.com/-- is a self-administered, equity real estate investment trust founded in 1970, that invests across the full spectrum of senior housing and health care real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings. The company also offers a full array of property management and development services. * * * As reported in the Troubled Company Reporter on July 16, 2007, Standard & Poor's Ratings Services revised its outlook on Health Care REIT Inc. to positive from stable. At the same time, S&P affirmed senior unsecured debt ratings and the 'BB+' preferred stock rating. HORIZON LINES: Commences Offering for 9% and 11% Senior Notes ------------------------------------------------------------- Horizon Lines Inc. commenced a tender offer for any and all of the 9% senior notes due 2012 (CUSIP No. 44043YAB8) of its subsidiaries Horizon Lines LLC and Horizon Lines Holding Corp. and 11% senior discount notes due 2013 (CUSIP No. 40422RAB2) of its subsidiary H-Lines Finance Holding Corp. About $197 million in aggregate principal amount of the senior notes and $104 million aggregate principal amount at maturity of the senior discount notes are currently outstanding. In conjunction with the tender offer, for each series of notes, the company is soliciting the consent of the holders of a majority in aggregate principal amount of the outstanding notes in such series to eliminate substantially all of the restrictive covenants contained in the indenture governing such notes. The terms and conditions of the tender offer and consent solicitation are set forth in an Offer to purchase and consent solicitation statement dated July 17, 2007. Subject to certain conditions precedent described in the offer to purchase, holders who validly tender notes and deliver consents at or prior to 5 p.m., New York City time, on July 30, 2007, unless extended, will be entitled to receive the total consideration, which includes a consent payment of $30 per $1,000 principal amount of notes. Holders who validly tender and deliver notes after the consent expiration but at or prior to 12 midnight, New York City time, on Aug. 13, 2007, unless extended, will be entitled to receive the tender consideration, which is equal to the total consideration less the consent payment. Assuming that all conditions to the tender offer have been satisfied or waived, payment will be made promptly following the company's acceptance of such tendered notes after the expiration time, subject to the company's right to elect to accept for purchase prior to the expiration time all notes tendered prior to the consent expiration and purchase the notes promptly following such acceptance. Notes and related consents may be withdrawn prior to the consent expiration. After the consent expiration, tendered notes and related consents may be withdrawn only under certain limited circumstances. The total consideration for each $1,000 principal amount of senior notes validly tendered and not validly withdrawn prior to the consent expiration will be an amount equal to: (i) the sum of: (a) the present value as of the applicable payment date of $1,045 on Nov. 1, 2008; plus (b) the present value as of the applicable payment date of each of the interest payments that is scheduled to be paid on the senior notes from the payment sate until the senior notes first call date, in each case discounted on the basis of the yield to the senior notes first call date equal to (x) the bid-side yield on the 4.875% U.S. Treasury Notes due Oct. 31, 2008, as calculated by the dealer manager in accordance with standard market practice, as of 2 p.m., New York City time, on the second business day immediately preceding the consent expiration, plus (y) 50 basis points; minus (ii) accrued and unpaid interest from, and including, the most recent interest payment date to, but not including, the applicable payment date. Senior notes accepted for payment will also receive accrued and unpaid interest up to, but excluding, the applicable payment date. The total consideration for each $1,000 principal amount at maturity of senior discount notes validly tendered and not validly withdrawn prior to the Consent Expiration will be an amount equal to the present value as of the applicable Payment Date of $1,055 on April 1, 2008, discounted on the basis of the yield to the senior discount notes first call date equal to (a) the bid-side yield on the 4.625% U.S. Treasury Notes due March 31, 2008, as calculated by the Dealer Manager in accordance with standard market practice, as of 2 p.m., New York City time, on the second business day immediately preceding the Consent Expiration, plus (b) 50 basis points. Subject to market conditions and other factors, the company currently intends to finance the tender offer with a portion of the proceeds from the sale of up to $300 million of its convertible debt securities and the replacement of the company's existing credit facility with a new credit facility consisting of a $125 million term loan and a $200 million revolver. The offer to purchase and this notice is not an offer to sell or a solicitation to buy any securities. The company's obligation to accept for purchase and to pay the total consideration or tender consideration, as applicable, for each of the notes validly tendered in the tender offer is subject to, and conditioned upon, the satisfaction of or waiver of: (i) the completion and close of the new financing on terms and conditions satisfactory to the company, and receipt by the company of net proceeds from the new financing sufficient to repay the company's indebtedness under the existing credit facility and to purchase all notes pursuant to the offer; (ii) for each series of notes, the receipt of the requisite consents on or prior to the consent expiration from the holders of at least a majority in aggregate principal amount of the outstanding Notes in such series and the execution of the supplemental indenture relating to the senior notes by Horizon Lines LLC and Horizon Lines Holding Corp., each a wholly-owned subsidiary of the company, the guarantors and the trustee and the execution of the supplemental indenture relating to the senior discount notes by H-Lines Finance Holding Corp., a wholly-owned subsidiary of the company, and the trustee; and (iii) certain other customary conditions. The tender offer is being made only pursuant to the offer to purchase and related applicable letter of transmittal and consent dated July 17, 2007. The company has retained Goldman, Sachs & Co. to serve as the exclusive dealer manager and solicitation agent for the tender offer and D.F. King & Co., Inc. to serve as the information agent. Requests for documents may be directed to D.F. King & Co., Inc. by telephone at 800-714-3313 (toll-free). Questions regarding the tender offer and consent solicitation may be directed to Goldman, Sachs & Co. at 800-828-3182 (toll-free) or 212-357-0775. About Horizon Lines Headquartered in Charlotte, North Carolina, Horizon Lines Inc. (NYSE: HRZ) -- http://www.horizonlines.com/-- is a Jones Act container shipping and integrated logistics company and is the parent company of Horizon Lines Holding Corp. and Horizon Lines LLC. The company accounts for approximately 37% of total U.S. marine container shipments from the continental U.S. to the three non-contiguous Jones Act markets -- Alaska, Hawaii, and Puerto Rico, and to Guam. * * * As reported in the Troubled Company Reporter on July 3, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on Horizon Lines Inc. to 'BB-' from 'B'. The rating on the bank loan was raised from to 'BB' from 'B+'; the recovery rating remains '2', indicating expectations of substantial (70%-90%) recovery in the event of a payment default. The rating on the senior unsecured notes was raised to 'B' from 'CCC+'. The outlook is now stable. INDYMAC INDX: Moody's Reviews Ba2 Ratings on Two Tranches --------------------------------------------------------- Moody's Investors Service placed under review for possible downgrade two tranches from two deals issued by IndyMac INDX Mortgage Loan Trust in 2006. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were placed under review for downgrade based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. Complete rating actions are: Issuer: IndyMac INDX Mortgage Loan Trust -- Series 2006-AR15, Class M-11, current rating Ba2, under review for possible downgrade -- Series 2006-AR21, Class M-11, current rating Ba2, under review for possible downgrade INTEGRATED HEALTHCARE: Appoints Retired Judge Jameson as Director ----------------------------------------------------------------- Integrated Healthcare Holdings Inc. reported that the Hon. C. Robert Jameson, Ret'd., has been appointed to fill a vacant seat on its Board of Directors. Judge Jameson was appointed at the request of IHHI's management to break a deadlock on IHHI's board. The deadlock previously stalled IHHI's efforts to refinance its debt. Judge Jameson will serve in the capacity as a Court-appointed provisional director until a lawsuit filed by IHHI against, among others, IHHI director Anil V. Shah and Orange County Physicians Investment Network, IHHI's former majority shareholder, is concluded. Before leaving the bench, Judge Jameson served as Presiding Judge of the Orange County Superior Court, Presiding Judge of the Court's Appellate Division and Supervising Judge of Court's Complex Civil Litigation Panel. He was named "Judge of the Year" by numerous organizations including ABOTA, Consumer Attorneys of California, the Orange County Bar Association Business Litigation Section and the Orange County Trial Lawyers. IHHI sued Shah and OCPIN last May for breach of fiduciary duty, among other things. IHHI's lawsuit contends that Shah and OCPIN held up the critically needed refinancing to force IHHI to make disputed lease payments to a third company owned by an OCPIN affiliate and others. Judge Gregory H. Lewis of the Orange County Superior Court appointed Jameson after rejecting a competing request by Shah and OCPIN to force IHHI's management to call a special shareholders' meeting. Shah and OCPIN wanted the special shareholders' meeting to elect their own director. Shah and OCPIN opposed Judge Lewis' appointment of a provisional director. In denying Shah and OCPIN's request, and in appointing Judge Jameson to serve as a "verifiably independent" provisional director, Judge Lewis explained he was acting as "the conscience of the community" to ensure continued operation of four Orange County hospitals owned and operated by IHHI. "Judge Lewis acted courageously," remarked IHHI attorney David A. Robinson of the Irvine-based Enterprise Counsel Group. "Although acknowledging the law normally would entitle Shah and OCPIN to hold a meeting to elect their own director, Judge Lewis recognized the conflicting financial interests at work and acted to prevent a potential public healthcare disaster. He agreed with IHHI's management that IHHI's Board should be controlled by individuals with only the interests of four hospitals and the public they serve in mind." "This is precisely the result we were looking for when we filed the lawsuit against Shah and OCPIN," said IHHI's President Larry Anderson. "Shah's self-serving tactics have put four hospitals at risk. They have caused IHHI to default on its existing loan obligations. We look to Judge Jameson to work with IHHI's other independent board members to implement steps necessary to ensure IHHI's future stability and success". Per IHHI chief executive officer, Bruce Mogel: "We praise the judge's courage in standing up for healthcare in Orange County. This decision will provide much needed stability benefiting the healthcare delivery system in Orange County and surrounding areas." About Integrated Healthcare Integrated Healthcare Holdings Inc. owns and operates four hospitals in Orange County, California, with a total of 770 beds, 2787 employees, and 1725 active physicians. The company's four hospitals operate approximately 12% of the beds in Orange County and include Western Medical Center Santa Ana, Western Medical Center Anaheim, Coastal Communities Hospital and Chapman Medical Center. At Dec. 31, 2006, the company's balance sheet showed total assets of $127,155,023 and total debts of $173,115,565, resulting in a stockholders' deficit of $45,960,542. ION MEDIA: Extends Exchange Offer to July 27 -------------------------------------------- ION Media Networks Inc. disclosed that since less than 50% of the outstanding shares of each of its 13-1/4% Cumulative Junior Exchangeable Preferred Stock, currently accruing dividends at the rate of 14-1/4% and 9-3/4% Series A Convertible Preferred Stock was tendered into the exchange offer and consent solicitation that the company launched on June 8, 2007, holders will receive the these consideration in the Exchange Offer: -- for each tendered share of 14-1/4% Preferred Stock, the holder will receive $7,500 principal amount of 11% Series A Mandatorily Convertible Senior Subordinated Notes due 2013 and $500 initial liquidation preference of 12% Series B Mandatorily Convertible Preferred Stock, which will rank junior to any unexchanged Senior Preferred Stock; and -- for each tendered share of 9_% Preferred Stock, the holder will receive $4,500 principal amount of Series A Notes and $500 initial liquidation preference of Series B Convertible Preferred Stock. The company has extended the Exchange Offer, which will now expire at 12:00 midnight, New York City time, Friday, July 27, 2007, unless extended or terminated. As of 11:59 P.M., New York City time, on July 13, 2007, approximately 14,409 shares, representing approximately 25.3% of the outstanding shares, of 14-1/4% Preferred Stock and 1,774 shares, representing approximately 10.6% of the outstanding shares, of 9-3/4% Preferred Stock have been tendered in the Exchange Offer. Withdrawal rights will continue to apply during this extension of the Exchange Offer, permitting holders who do not wish to receive the Minority Exchange Consideration to withdraw their previously tendered shares and revoke their consents. Holders will be required to consent to the proposed amendments to the certificates of designation governing the Senior Preferred Stock in order to validly tender their shares in the Exchange Offer. If, at the expiration of the Exchange Offer, a majority of shares of either series of Senior Preferred Stock have been tendered, holders of such series will still receive the Minority Exchange Consideration, although the proposed amendments will become effective with respect to such series. In actions filed by certain holders of the 14-1/4% Preferred Stock and the 9-3/4% Preferred Stock, the Court of Chancery of the State of Delaware in and for New Castle County denied the plaintiffs' motion to enjoin the Exchange Offer. On July 12, 2007, the plaintiffs sought permission to appeal the denial of their motion and are seeking to enjoin the Exchange Offer pending the appeal. The company will include in the amended Exchange Offer documents additional information about CIG Media LLC as a co-bidder in the Exchange Offer. No other terms of the Exchange Offer have changed. Stockholders may obtain a free copy of the Offer to Exchange dated June 8, 2007, and the Letter of Transmittal and Consent by contacting D.F. King & Co., Inc., the information agent for the Exchange Offer, at (800) 431-9643. About ION Media Headquartered in West Palm Beach, Florida, 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. 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 July 10, 2007, Ion Media Networks Inc.'s balance sheet at March 31, 2007, showed $1.05 billion in total assets, $2.07 billion in total liabilities, $881.1 million in mandatorily redeemable and convertible preferred stock, and $6.9 million in contingent class B common stock and stock option purchase obligations, resulting in a $1.9 billion total stockholders' deficit. * * * 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 Ion's announcement that it entered into an agreement with Citadel Investment Group LLC and NBC Universal Inc. for a comprehensive recapitalization of Ion. IPSCO INC: Gets Requisite Consents for 8-3/4% Sr. Notes Offering ---------------------------------------------------------------- IPSCO Inc. disclosed that as of 5:00 p.m., New York City time, approximately $142.6 million aggregate principal amount of Notes, or approximately 99.15%, were validly tendered for its cash tender offer and related consent solicitation for any and all of its outstanding 8-3/4% Senior Notes due 2013. IPSCO Inc. has accepted for payment all Notes validly tendered and not validly withdrawn pursuant to the tender offer. J.P. Morgan Securities Inc. served as the Dealer Manager and Solicitation Agent and Global Bondholder Services Corporation served as the Information Agent and Depositary for the tender offer and consent solicitation. Located at Regina, Saskatchewan, IPSCO Inc. (NYSE/TSX: IPS) -- http://www.ipsco.com/-- produces energy tubulars and steel plate in North America. IPSCO operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe and large diameter transmission pipe. Additionally, IPSCO provides premium connections for oil and gas drilling and production. IPSCO INC: Canadian Competition Bureau OKs Plan of Arrangement -------------------------------------------------------------- IPSCO Inc. and SSAB Svenskt Stal AB have obtained the approval from the Canadian Minister of Industry under the Investment Canada Act. The companies have obtained clearance from the Canadian Competition Bureau in connection with the Plan of Arrangement pursuant to which SSAB Canada Inc., a subsidiary of SSAB Svenskt, would acquire all of the outstanding shares of IPSCO for $160 per share. The completion of the Arrangement remains subject to shareholder approval on July 16, 2007, approval of the Ontario Superior Court of Justice on July 17, 2007, and the satisfaction of certain other conditions. IPSCO and SSAB expect the transaction to be completed on July 18, 2007. About SSAB SSAB Svenskt Stal AB - http://www.ssab.com/-- is a Swedish based publicly traded corporation with a European position in Quenched & Tempered heavy plate and EHS/UHS steel sheet. The Group comprises four divisions: Division Sheet and Division Heavy Plate are the steel operations, Plannja is a processing company in building products, and Tibnor is the Group's trading arm supplying a broad product range of steel and metals. SSAB has 8,800 employees and has operations or offices in over 40 countries and a worldwide sales presence. About IPSCO Located at Regina, Saskatchewan, IPSCO Inc. (NYSE/TSX: IPS) -- http://www.ipsco.com/-- produces energy tubulars and steel plate in North America. IPSCO operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe and large diameter transmission pipe. Additionally, IPSCO provides premium connections for oil and gas drilling and production. JEFFREY MORAN: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Jeffrey T. Moran 2583 Kimmeridge Drive East Point, GA 30344 Bankruptcy Case No.: 07-70518 Chapter 11 Petition Date: July 2, 2007 Court: Northern District of Georgia (Atlanta) Judge: Margaret Murphy Debtor's Counsel: Evan M. Altman, Esq. Building 2-Northridge 400 8325 Dunwoody Place Atlanta, GA 30350 Tel: (770) 394-6466 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Brent Scarbrough & Co. $674,730 155 Robinson Drive Fayetteville, GA 30214 F.W. Newton $179,163 Suite 300, 4555 Mansell Road Alpharetta, GA 30022 A.P.A.C.-Southeast, Inc. $173,574 Suite 700, 900 Ashwood Parkway Atlanta, GA 30338 Christopher C. Mingledorff, $119,005 Esq. Development Site Services, $17,263 Inc. Internal Revenue Service $17,000 Erosion Control Products $9,100 Home Depot $8,130 Crawford Grading & Pipeline $8,013 Clements Fence Co., Inc. $4,000 James C. Roberts $3,900 Covenant Contracting, Inc. $2,095 Greystone Power Corp. $1,707 Seiler & Associates, Inc. $708 Pollard Construction Disposal $300 Filter Right, Inc. $175 JOHN SIMS: Case Summary & 19 Largest Unsecured Creditors -------------------------------------------------------- Debtor: John Joel (Joe) Sims Kristi Kay Sims 3828 Whiffletree Court Plano, TX 75023 Bankruptcy Case No.: 07-41561 Chapter 11 Petition Date: July 17, 2007 Court: Eastern District of Texas (Sherman) Debtor's Counsel: Marc W. Taubenfeld, Esq. McGuire, Craddock & Strother, P.C. 3550 Lincoln Plaza 500 North Akard Dallas, TX 75201 Tel: (214) 954-6800 Fax: (214) 954-6868 Estimated Assets: $100,000 to $ 1 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Science 2002 1040 $135,388 Special Procedures - Insolvency P.O. Box 21126 Philadelphia, PA 19114 Internal Revenue Service Personal Guaranty $92,242 Special Procedures - Insolvency P.O. Box 21126 Philadelphia, PA 19114 Internal Revenue Science 2001 1040 $83,835 Special Procedures - Insolvency P.O. Box 21126 Philadelphia, PA 19114 Chase Manhattan Bank (8) Credit Cards $72,715 Internal Revenue Science 2003 1040 $69,560 Internal Revenue Science 2005 1040 $65,672 Sallie Mae Servicing Student Loans $46,911 Internal Revenue Servicing 2004 1040 $32,199 Waters Secure Trust Personal Loan 31,000 Citi Credit Card $27,245 MBNA - Bank of America (3) Credit Cards $27,074 Wells Fargo Business Line Personal Guaranty $25,916 American Express Business Personal Guaranty $12,400 American Express Credit Card $11,452 Legacy Bank Personal Guaranty $10,000 Fidelity Investments Credit Card $8,528 Discover Card - Platinum Credit Card $5,713 North Dallas Bank & Trust Purchase Money Secur $5,261 Sheri Landman Personal Loan $5,000 JON BOUMA: Case Summary & 12 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Jon William Bouma 834 Coachway Annapolis, MD 21401 Bankruptcy Case No.: 07-16330 Chapter 11 Petition Date: July 11, 2007 Court: District of Maryland (Baltimore) Judge: James F. Schneider Debtor's Counsel: Richard H. Gins, Esq. 3 Bethesda Metro Center, Suite 530 Bethesda, MD 20814 Tel: (301) 718-1078 Fax: (301) 718-8359 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Citi Mastercard $11,500 Box 183063 Columbus, OH 43218 Chase Visa $10,300 Box 15153 Wilmington, DE 19886 P.N.C. Bank (Ready Line) $10,000 Box 15153 Wilmington, DE 19886 Bank of America $9,700 Discover $6,800 Chase Mastercard $4,700 P.N.C. Bank $4,000 Aspire Visa $2,950 Capital One Visa $2,500 Dell $1,430 SunTrust Visa $900 Sears $100 JON HOHMAN: Case Summary & 18 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Jon C. Hohman Barbara J. Hohman W9058 Forest Ridge Drive P.O. Box 2607 Appleton, WI 54912-2607 Bankruptcy Case No.: 07-25299 Chapter 11 Petition Date: July 11, 2007 Court: Eastern District of Wisconsin (Milwaukee) Judge: Pamela Pepper Debtor's Counsel: Paul G. Swanson, Esq. Steinhilber, Swanson, Mares, Marone & McDermott 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903-0617 Tel: (920) 426-0456 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Community Bank & Trust lots $600,000 604 North 8th Street P.O. Box 1409 Sheboygan, WI 53082-1409 Key Bank yacht $227,998 P.O. Box 6410 The Lakes, NV 88901-6410 Fox Cities Credit Union business debt $98,078 3401 East Calumet Street and/or possible Appleton, WI 54915 personal guaranty Wynn's Extended Care business debt $90,568 and/or possible personal guaranty Outagamie County parcel $47,353 Treasurer Bank of America credit card $41,486 charges Horicon State Bank loan $38,067 Baylake Bank loan $35,000 Chase credit card $25,046 charges Creditors Exchange business debt $21,533 and/or possible personal guaranty C-Chip Technologies Corp. business debt $18,030 and/or possible personal guaranty Associated Bank credit card $16,514 charges Johnson Gunderson goods and/or $15,163 services Michael A. Daury settlement $10,000 W.E. Energy goods and/or $9,825 services Wells Fargo Financial business debt $9,651 Leasing, Inc. and/or possible personal guaranty American Express credit card $8,410 charges Office Depot business debt $7,755 and/or possible personal guaranty JORDYN HOLDINGS: Creditors' Panel Taps Stichter Riedel as Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Jordyn Holdings IV LLC's Chapter 11 case seeks permission from the U.S. Bankruptcy Court for the Middle District of Florida, to employ Stichter Riedel Blain and Prosser PA as its counsel. Stichter Riedel will: a) provide legal advise to the Committee on its powers and duties in this case; b) provide legal advise to the Committee on Debtor's proposed sale of its assets and properties; c) assist the Committee in its investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor, the disposition of the Debtor's assets and any other matter relevant to the case or to the formulation of a plan of reorganization; d) participate in the formulation of a plan of reorganization; e) assist and advise the Committee in its examination and analysis of the Debtor's affairs and causes of its insolvency; f) assist and advise the committee with regards to its communications with the general creditor body regarding the committee's recommendations on any proposed plan of reorganization; g) assist the committee in reviewing and enforcing all of its rights under Section 1103(c) of the Bankruptcy Code; h) review and analyze all applications, orders, financial information, budgets, statements of operations, and schedules and statement of financial affairs filed with the Court or provided to the committee or other third parties and advise the Committee as to their propriety, and , after approval by the committee, object or consent thereto on its behalf; i) confer with the Debtor's management and counsel; j) attend the meetings of the Committee; k) prepare and file appropriate pleadings on behalf of the committee; and l) perform other legal services in relation to the Chapter 11 proceeding. Documents submitted to the court did not include the hourly compensation of the firm's professionals. Edward J. Peterson III, Esq., an attorney at Stichter Riedel, assures the Court that his firm is "disinterested" as that term is defined in the Bankruptcy Code Section 101(14). Mr. Peterson can be reached at: Edward J. Peterson III, Esq. Stichter Riedel Blain and Prosser PA Suite 200, 110 East Madison Street Tampa, FLA 33602 Tel: (813) 229-0144 Fax: (813) 229-1811 Based in Sarasota, Florida, Jordyn Holdings IV LLC filed for Chapter 11 bankruptcy protection on June 13, 2007, (Bankr. M.D. Fla. Case No. 07-05006). Richard J. McIntyre, Esq., at The McIntyre Law Firm, P.L., represents the Debtor in its restructuring efforts. In its schedules of assets and liabilities, the Debtor listed total assets of $56,390,000, and total liabilities of $23,841,627. JP MORGAN: Fitch Affirms Low-B Ratings on Five Loan Classes ----------------------------------------------------------- Fitch Ratings has upgraded JP Morgan Commercial Mortgage 2003-PM1 as: -- $27.5 million class D to 'AAA' from 'AA+'; -- $13 million class E to 'AA+' from 'AA'; -- $15.9 million class F to 'AA-' from 'A+'. In addition, Fitch has affirmed these classes: -- $10.8 million class A-1 at 'AAA'; -- $340.1 million class A1A at 'AAA'; -- $114.4 million class A-2 at 'AAA'; -- $82.6 million class A-3 at 'AAA'; -- $282 million class A-4 at 'AAA'; -- Interest-only class X-1 at 'AAA'; -- Interest-only class X-2 at 'AAA'; -- $33.2 million class B at 'AAA'; -- $13 million class C at 'AAA'; -- $13 million class G at 'A'; -- $18.8 million class H at 'BBB+'; -- $15.9 million class J at 'BBB-'; -- $7.2 million class K at 'BB+'; -- $8.7 million class L at 'BB'; -- $7.2 million class M at 'B+'; -- $4.3 million class N at 'B'; -- $2.9 million class P at 'B-'. Fitch does not rate the $20.2 million class NR certificates. The upgrades reflect the increased credit enhancement levels from additional defeasance of one loan (5.7%), prepayment of one loan as well as scheduled amortization since Fitch's last rating action. As of the July 2007 distribution date, the pool's aggregate certificate balance has decreased 10.7% to $1.03 billion from $1.16 billion at issuance. Fourteen loans (21.8%), including the largest two loans in the transaction (12.8%), have defeased since issuance. Currently, there is one loan (0.6%) in special servicing that is secured by a multifamily property located in Fort Worth, Texas and remains current. The loan was transferred to the special servicer due to major deferred maintenance. A receiver has taken over the property and is now in the process determining the condition of the property. KENDLE INT'L: Closes $175 Million Senior Notes Public Offering -------------------------------------------------------------- Kendle International Inc. closed its underwritten public offering of $175 million aggregate principal amount of 3.375% Convertible Senior Notes due 2012, well as the closing of an additional $25 million aggregate principal amount of notes in connection with the underwriter's exercise in full of its over-allotment option. The notes pay interest semiannually at a rate of 3.375% per annum. The notes are convertible, subject to certain limitations, at the holder's option, at an initial conversion rate of 20.9585 shares of common stock per $1,000 principal amount of notes, or an initial conversion price of approximately $47.71 per share of common stock, subject to adjustment upon the occurrence of certain events. The initial conversion price represents a conversion premium of 32.5% over the closing sale price of the company's common stock on July 10, 2007, which was $36.01 per share. Upon conversion, holders will receive cash up to the principal amount of the notes to be converted, and any excess conversion value will be delivered in shares of the company's common stock. The notes are not redeemable at the option of the company prior to maturity. Upon a fundamental change, holders may require the company to repurchase their notes at a purchase price equal to the principal amount of the notes to be repurchased, plus accrued and unpaid interest, in cash. The notes will be senior unsecured obligations of the company. In connection with the offering, Kendle entered into convertible note hedge transactions with certain dealers. These transactions are intended to reduce the potential dilution to the company's shareholders upon any future conversion of the notes. The company also entered into warrant transactions concurrently with the offering, pursuant to which it sold warrants to purchase Kendle common stock to the same dealers that entered into the convertible note hedge transactions. The convertible note hedge and warrant transactions generally have the effect of increasing the conversion price of the convertible notes to approximately $61.22 per share of Kendle common stock, representing approximately a 70% premium based on the closing sales price as reported on The Nasdaq Global Market on July 10, 2007, of $36.01 per share. Kendle estimates net proceeds from the sale of the notes of approximately $193.6 million after deducting the underwriter's discounts and commissions and estimated expenses of the offering payable by Kendle. In addition, Kendle used approximately $18.2 million of the net proceeds of the offering to pay the net cost of the convertible note hedge transactions and the warrant transactions. Kendle is required to pay at least 75% of the net proceeds, approximately $146 million of this offering toward repayment of amounts owed under the term loan under its credit agreement. Kendle intends to use the remaining net proceeds from this offering for other general corporate purposes, which may include repayment of other indebtedness, working capital and acquisitions or investments in businesses, products or technologies that are complementary to those of Kendle. Printed copies of the prospectus and prospectus supplement relating to the offering may be obtained from: UBS Investment Bank Attention: Prospectus Department 299 Park Avenue New York, NY 10171 Telephone (888) 827- 7275 toll-free About Kendle International Inc. Headquartered in Cincinnati, Ohio, Kendle International Inc. (Nasdaq: KNDL) -- http://www.kendle.com/-- is a clinical research organization and provides Phase II-IV clinical development services worldwide. The company's global clinical development business is focused on five regions - North America, Europe, Asia/Pacific, Latin America and Africa. * * * On July 3, 2007, Moody's Investors Services assigned B1 long-term corporate family rating, B1 bank loan debt, and B2 probability of default rating to Kendle International Inc. The outlook is stable. In addition, Standard & Poor's assigned B+ long- term foreign and local issuer credits to the company. The outlook is stable. KENNETH SIPSMA: Case Summary & 12 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Kenneth R. Sipsma 5379 Mariners Cove Drive, Unit 507 Madison, WI 53704 Bankruptcy Case No.: 07-12486 Chapter 11 Petition Date: June 28, 2007 Court: Western District of Wisconsin (Madison) Judge: Robert D. Martin Debtor's Counsel: Claire Ann Resop, Esq. Brennan, Steil & Basting, S.C. 22 East Mifflin Street, Suite 400 P.O. Box 990 Madison, WI 53701-0990 Tel: (608) 251-7770 Fax: (608) 251-6626 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America credit card $50,242 P.O. Box 15726 purchases Wilmington, DE 19886-5726 Mariner's Cove at possible $34,000 Lighthouse Bay condominium 5371 Mariner's Cove Drive assessments Madison, WI 53704 I.R.S. income taxes $25,000 S.B.S.E.: Insolvency S.T.O.P. 5301 M.I.L. 211 West Wisconsin Avenue P.O. Box 3205 Milwaukee, WI 53203-3205 W.I. Dept. of Revenue 2005-2006 income $12,000 taxes American Express credit card $10,482 purchases Macy's credit card $4,086 purchases Chase credit card $3,316 purchases Citifinancial Retail credit card $2,039 Services purchases Action Legal Copy Service copying services $1,330 G.E. Money Bank Kinetico Water $632 Softener Neiman Marcus credit card $422 purchases Capital One Bank credit card $304 Purchases KING PHARMA: Sells Rochester Facility to JHP for $90 Million ------------------------------------------------------------ King Pharmaceuticals Inc. has signed an asset purchase agreement with JHP Pharmaceuticals LLC, pursuant to which JHP will acquire King's sterile manufacturing facility in Rochester, Michigan, some of King's legacy products that are manufactured there, and the related contract manufacturing business. Under the terms of the asset purchase agreement, JHP will pay King approximately $90 million, subject to final inventory adjustments. The agreement is subject to customary regulatory approvals, including antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act. The companies expect to close the transaction during the third quarter of 2007. The companies also entered into a manufacturing and supply agreement pursuant to which JHP will provide certain fill and finish support with respect to King's hemostatic product, Thrombin-JMI(R). "This transaction represents the continued successful execution of our strategy for long-term growth, particularly with respect to the realization of greater operating efficiency for our company," Eric J. Bruce, chief technical operations officer of King, stated. "Importantly, this transaction will enable us to redeploy our current investments in these assets to our ongoing R&D and business development initiatives." Mr. Bruce added. "We fully expect JHP will make a solid partner in support of our Thrombin- JMI(R) business." "JHP is delighted to secure these cornerstone assets for our planned business in the U.S. Peter Jenkins, co-founder of JHP, said. The acquired products will provide immediate critical mass in our target hospitals and clinic market and we are confident in the opportunity to build the contract manufacturing business at Rochester." "This transaction defines the immediate future for the Rochester facility and we expect to be an excellent partner for King with regard to the Thrombin-JMI(R) activities that will remain at the site," Stuart Hinchen, the other co-founder of JHP, commented. King's 2006 net sales for the legacy products included in the agreement totaled approximately $51 million. Net revenue from contract manufacturing at the facility totaled approximately $14 million during 2006. The agreement does not include King's new Bicillin(R) manufacturing and production facility that is also located in Rochester, Michigan. King's current total net book value of the assets which are the subject of this transaction, including inventory, is approximately $151 million. Accordingly, King expects to incur a special charge in the amount of approximately $60 million on closing the transaction. King incurred a net operating loss of approximately $1 million with respect to these assets in 2006. JHP expects to offer employment to all current employees at the Rochester manufacturing facility. The legacy branded pharmaceutical products included in the agreement are: a) Adrenalin(R) (epinephrine injection) b) Aplisol(R) (Tuberculin Purified Protein Derivative, Diluted(Stabilized Solution)) c) Brevital(R) (methohexital sodium) d) Delestrogen(R) (estradiol valerate injection e) Ketelar(R) (ketamine hydrochloride injection) f) Pitocin(R) (oxytocin injection) g) Pitressin(R) (vasopressin injection) h) Tigan(R) vial (trimethobenzamide hydrochloride injection) i) Triostat(R) (liothyronine sodium injection) j) Coly-Mycin(R) M (sterile colistimethate sodium) k) Coly-Mycin(R) S (colistin sulfate-neomycin sulfate- thonzonium bromide-hydrocortisone acetate otic suspension) l) Cortisporin(R)-TC (colistin sulfate-neomycin sulfate- thonzonium bromide-hydrocortisone acetate otic suspension) About JHP Pharmaceuticals LLC Headquartered in New Jersey, JHP Pharmaceuticals LLC plans to become a significant marketer of hospital and clinic based pharmaceuticals in the US, well as a quality contract manufacturer of aseptically manufactured pharmaceuticals with an emphasis on biologic based products. JHP is a private company founded by Peter Jenkins and Stuart Hinchen, whose shareholders upon closing of this transaction will include Morgan Stanley Principal Investments in addition to Messrs Jenkins and Hinchen. About King Pharmaceuticals Headquartered in Bristol, Tennessee, King Pharmaceuticals Inc. (NYSE: KG) - http://www.kingpharm.com/-- is a vertically integrated branded pharmaceutical company. King seeks to capitalize on opportunities in the pharmaceutical industry through the development, including through in-licensing arrangements and acquisitions, of novel branded prescription pharmaceutical products in attractive markets and the strategic acquisition of branded products that can benefit from focused promotion and marketing and life-cycle management. * * * As reported in the Troubled Company Reporter on April 27, 2007, Standard & Poor's Ratings Services revised its rating outlook on King Pharmaceuticals Inc. to stable from negative. At the same time, Standard & Poor's affirmed its 'BB' corporate credit rating. KONSTANTINO KOURIS: Case Summary & 15 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Konstantino Kouris 7481 Crystal Caver Drive Las Vegas, NV 89117 Bankruptcy Case No.: 07-14327 Chapter 11 Petition Date: July 17, 2007 Court: District of Nevada (Las Vegas) Debtor's Counsel: Jeffery A. Cogan, Esq. Jeffery A. Cogan, Chtd. 333 No Rancho Drive, Suite 825 Las Vegas, NV 89106 Tel: (702) 474-4220 Fax: (702) 474-4228 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million Debtor's List of its 15 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Countrywide Home Loan 7481 Crystal Caver $1,032,121 400 Countrywide Way Drive, Las Vegas, NV Simi Valley, CA 93065 Countrywide 7481 Crystal Caver $578,659 450 American Street Drive, Las Vegas, NV Simi Valley, CA 93065 GMAC Mortgage 7481 Crystal Caver $530,679 3451 Hammond Avenue Drive, Las Vegas, NV P.O. Box 780 Waterloo, IA 50702 Marshall & Ilsley Crystal Caver Drive $499,431 770 North Water Street Milwaukee, WI 53202 OCWEN Loan Crystal Caver Drive $367,935 1675 Palm Beach Lakes Boulevard West Palm Beach, FL 33401 Saxon Mortgage Crystal Caver Drive $276,930 2700 Airport Freeway Fort Worth, TX 76111 Home Loan Services Crystal Caver Drive $150,977 Homecoming Funding Crystal Caver Drive $72,720 Alliant Credit Union $45,794 United Air ECU $31,660 Chrysler Financial $19,931 HSBC NV Revolving Credit $2,079 GEMB/JCP Credit Card $1,780 Capital One Bank Credit Card $218 American Express Credit Card $17 LB COMMERCIAL: S&P Preliminary Rates $8.084MM Class S Certs. at B- ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary ratings to LB Commercial Mortgage Trust 2007-C3's $3.23 billion commercial mortgage pass-through certificates series 2007-C3. The preliminary ratings are based on information as of July 17, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying mortgage loans, and the geographic and property type diversity of the loans. Standard & Poor's Ratings Services' analysis determined that, on a weighted average basis, the pool has a debt service coverage of 1.37x, a beginning LTV of 104.5%, and an ending LTV of 102.9%. Preliminary Ratings Assigned LB Commercial Mortgage Trust 2007-C3 Recommended Class Rating Amount credit Support ----- ------ ------ -------------- A-1 AAA $8,000,000 30.000% A-2 AAA $430,000,000 30.000% A-3 AAA $71,000,000 30.000% A-AB AAA $21,700,000 30.000% A-4 AAA $838,338,000 30.000% A-1A AAA $894,617,000 30.000% A-M AAA $323,379,000 20.000% A-J AAA $266,789,000 11.750% B AA+ $32,338,000 10.750% C AA $32,338,000 9.750% D AA- $28,295,000 8.875% E A+ $24,254,000 8.125% F A $28,296,000 7.250% X* AAA $3,233,794,172** N/A A-2FL*** TBD TBD TBD A-3FL*** TBD TBD TBD A-ABFL*** TBD TBD TBD A-4FL*** TBD TBD TBD A-MFL*** TBD TBD TBD A-JFL*** TBD TBD TBD G A- $40,422,000 6.000% H BBB+ $36,380,000 4.875% J BBB $28,296,000 4.000% K BBB- $32,338,000 3.000% L BB+ $20,211,000 2.375% M BB $12,127,000 2.000% N BB- $4,042,000 1.875% P B+ $8,085,000 1.625% Q B $8,084,000 1.375% S B- $8,084,000 1.125% T NR $36,381,172 0.000% * Interest-only class. ** Notional amount. *** Floating rate class. N/A - Not applicable. NR - Not rated. LE GOURMET: General Unsecured Creditors to Receive up to 15% ------------------------------------------------------------ The Honorable Donald H. Steckroth of the United States Bankruptcy Court for the District of New Jersey confirmed Le Gourmet Chef Inc., aka Houseware Stores Inc.'s, Amended Chapter 11 Plan of Liquidation The Plan contemplates the liquidation of the Debtor's assets and the distribution of all proceeds to satisfy all valid claims against the Debtor. Treatment of Claims Under the Plan, Administrative Claims, Priority Tax Claims, and Priority Claims will be paid in full. The Secured Claim of Retail Restaurant will be paid in accordance with the terms of the settlement entered into by the Debtor, Retail Restaurant and the Official Committee of Unsecured Creditors. Secured Claims, other than Retail Restaurant, will receive, either: a. cash equal to the value of any collateral secured the secured claim, or b. return of the collateral securing the claim and any balance remaining, if any. Holders of General Unsecured Claims, with claims totaling $11,802,000, will receive a pro rata cash distribution after all valid claims have been paid in full. The Debtor anticipates that the General Unsecured claims will recover between 3% to 15% of their claims. Equity Interest holders will not receive any distribution. About Le Gourmet Headquartered in Shrewsbury, New Jersey, Le Gourmet Chef, Inc., -- http://www.legourmetchef.com/-- is a retailer specializing in solutions for entertaining and gift giving. The Company filed for bankruptcy on Aug. 8, 2006 (Bankr. D. N.J. Case No. 06-17364). John DiIorio, Esq., at Shapiro & Croland, and Wendy G. Marcari, Esq., at Dreier LLP represented the Debtor. John K. Sherwood, Esq., Thomas Pitta, Esq., and Kenneth Rosen, Esq., at Lowenstein Sandler, represented the Official Committee of Unsecured Creditors. The Debtor's schedules showed total assets of $29,271,509 and total liabilities of $25,514,857. LEAR CORP: S&P Places B Corp. Credit Rating on Positive Watch ------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' corporate credit rating on Southfield, Michigan-based Lear Corp. and certain other issue ratings on CreditWatch with positive implications following Lear's announcement that shareholders had voted against the debt- financed purchase of Lear by Carl Icahn-controlled American Real Estate Partners, L.P. (AREP; BB+/Stable/--). AREP currently owns or controls about 20% of Lear, an automotive supplier. "The CreditWatch resolution will focus on expectations for Lear's financial profile absent the proposed acquisition debt as well as prospects for any shifts in business or financial strategy now that Lear will remain an independent company," said Standard & Poor's credit analyst Robert Schulz. Prior to the AREP bid in February, Lear's corporate credit rating was 'B+' and a modest upgrade which returns the corporate credit rating to that level is possible. At the same time, Standard & Poor's withdrew its ratings on the proposed bank acquisition financing, revised its recovery rating on Lear's existing bank term loan to '2' from '3' and placed the 'B+' bank loan rating on the existing term loan on CreditWatch with positive implications. S&P also withdrew its 'B-3' short- term rating. Lear has total debt of about $3.5 billion at March 31, 2007, including the present value of operating leases and underfunded employee benefit liabilities. Lear has strong market positions, good growth prospects outside of North America, and fair financial flexibility. While its operating performance has been challenged by severe industry pressures in North America that caused credit protection measures to weaken in recent years, Lear has reported improved results during 2007, and twice raised its guidance for the year. Still, with restructuring efforts ongoing at Michigan- based automakers, S&P expect that 2007 and beyond will present challenges for most U.S.-based auto suppliers. LEHMAN ABS: Liquidation Loss Cues S&P's Default Rating ------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on the class B-1 manufactured housing contract senior/subordinate asset-backed certificates issued by Lehman ABS Manufactured Housing Contract Trust 2001-B to 'D' from 'CCC-'. The default of the class B-1 certificates reflects outstanding liquidation loss interest shortfalls for the May, June, and July 2007 payment dates. S&P expect interest shortfalls for this class will continue to be prevalent in the future, given the adverse performance trends displayed by the underlying pool of collateral, as well as the location of class write-down interest at the bottom of the transaction's payment priorities. As of the July 2007 payment date, this transaction has experienced cumulative net losses of 12.43% of its initial pool balance. Standard & Poor's will continue to monitor the outstanding ratings associated with this transaction in anticipation of future defaults. LIFE STYLE: Wants to Use Merchants & Farmers' Cash Collateral ------------------------------------------------------------- Life Style Furniture Company, Inc. asks authority from the U.S. Bankruptcy Court for the Northern District of Mississippi to use, as cash collateral, around $1.3 million borrowed from Merchants & Farmers Bank before the Debtor's bankruptcy. Merchants & Farmers Bank served as the Debtor's working capital lender before the Debtor's bankruptcy. When the Debtor filed for bankruptcy, it owed approximately $953,560 of principal and interest to Merchants & Farmers in connection with an account receivable, asset based lending line of credit, and $325,000 in connection with an "inventory" loan. Merchants & Farmers asserts a first-priority security interest in the Debtor's accounts, account receivable, inventory, chattel paper and related items of personal property to secure the Debtor's obligations. The Debtor suffered cash flow problems for several months due, in large part, to competition from Chinese companies and other offshore competitors, and general decreases in sales of furniture that has resulted from a general economic slow down. The Debtor says that it needs to use the cash collateral, pursuant to Section 363 of the U.S. Bankruptcy Code, to continue its operations, including payment of its overhead expenses, insurance, accounts payable, and wages. The Debtor continues that it will be in discussion with Merchants & Farmers regarding the use of cash collateral. Based in Okolona, Mississippi, Life Style Furniture Company, Inc. manufactures upholstered living room furniture. The company filed for Chapter 11 protection on June 25, 2007 (Bankr. N.D. Miss. Case No. 0-12127). Craig M. Geno, Esq., at Harris Jernigan & Geno, PLLC, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets of $1 million to $100 million. LYONDELL CHEMICAL: To Be Acquired by Basell for $19 Bil. in Cash ---------------------------------------------------------------- Basell and Lyondell Chemical Company have signed a definitive agreement pursuant to which Basell will acquire Lyondell's outstanding common shares for $48 per common share in an all cash transaction with a total enterprise value of approximately $19 billion, including the assumption of debt. The purchase price per share represents a 45% premium to Lyondell's closing share price on May 10, 2007, the day prior to the disclosure by Access Industries, the industrial group that owns Basell, of its potential interest in Lyondell, and a 20% premium to Lyondell's closing share price on July 16, 2007. The transaction was unanimously approved by the Boards of Directors of Basell and Lyondell. The transaction will create one of the sector's largest companies. Lyondell's three business segments -- ethylene, co-products and derivatives; propylene oxide and related products; and refining -- will complement and significantly strengthen Basell's polyolefins business. Basell and Lyondell together would have had combined 2006 revenues of approximately $34 billion and 15,000 employees around the world. "The combination of Basell and Lyondell creates one of the top chemical companies in the world," Len Blavatnik, Chairman and Founder of U.S.-based Access Industries, said. "This combination further strengthens Access' long-term strategic position in the global petrochemical industry." "Lyondell's competitively positioned assets, access to raw material and refining capacity are excellent complements to Basell's diversified portfolio," Volker Trautz, Chief Executive Officer of Basell, said. "We believe this transaction offers significant value for Lyondell's shareholders," Dan F. Smith, Chairman, President and Chief Executive Officer of Lyondell, said. "We are very pleased that Basell recognizes the value and fit of our portfolio of chemical and refining assets. Basell and Lyondell share a common vision for continued success, and the combination of our companies will enhance our opportunities." The transaction is subject to customary closing conditions, including regulatory approvals and the approval of Lyondell shareholders. This transaction is expected to close within the next several months and is not subject to financing. About Basell Basell -- http://www.basell.com/-- produces polypropylene and advanced polyolefin products, supplies polyethylene and catalysts, and provides technical services for its proprietary technologies. Basell, together with its joint ventures, has manufacturing facilities in 19 countries and sells products in more than 120 countries. Basell is privately owned by Access Industries. About Lyondell Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE:LYO) -- http://www.lyondell.com/-- is North America's third-largest independent, publicly traded chemical company. Lyondell manufactures chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE. The company also has locations in Austria, France, Italy, The Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil, China, Japan, Taiwan, India and Singapore. LYONDELL CHEMICAL: Declares $0.225 per Share Quarterly Dividend --------------------------------------------------------------- Lyondell Chemical Company declared July 12, 2007 a regular quarterly dividend of $0.225 per share of common stock to stockholders of record as of the close of business on Aug. 27, 2007. The regular quarterly dividend on each share of outstanding common stock is payable in cash on Sept. 17, 2007. Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE:LYO) -- http://www.lyondell.com/-- is North America's third-largest independent, publicly traded chemical company. Lyondell manufactures chemicals and plastics, a refiner of heavy, high-sulfur crude oil and a significant producer of fuel products. Key products include ethylene, polyethylene, styrene, propylene, propylene oxide, gasoline, ultra low-sulfur diesel, MTBE and ETBE. The company also has locations in Austria, France, Italy, The Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil, China, Japan, Taiwan, India and Singapore. LYONDELL CHEMICAL: Fitch Puts Rating on Negative Watch ------------------------------------------------------ Fitch Ratings has placed Lyondell, Equistar and Millennium on Rating Watch Negative following the announcement that Lyondell has agreed to be acquired by Basell for $12.66 billion, or $48 per share. The transaction is valued at $19 billion including the consolidated debt outstanding at Lyondell. Fitch has placed these ratings on Rating Watch Negative are: Lyondell -- Issuer Default Rating 'BB-'; -- Senior secured credit facility and term loan 'BB+'; -- Senior secured notes 'BB+'; -- Senior unsecured notes 'BB-'; -- Debentures 'BB-'. Equistar -- Issuer Default Rating B+; -- Senior secured credit facility 'BB+/RR1'; -- Senior unsecured notes 'BB-/RR3'. Millennium Chemicals Inc.'s: -- Issuer Default Rating 'B+'; -- Convertible senior unsecured debentures 'BB/RR2'. Millennium America Inc.: -- Issuer Default Rating 'B+'; -- Senior unsecured notes 'BB/RR2'. At the same time, Fitch has affirmed and subsequently withdrawn Millennium America's senior secured credit facility and term loan ratings at 'BB+/RR1'. The credit facility and term loan have been repaid and terminated during the second quarter of 2007. For Lyondell, approximately $5 billion of debt is covered; for Equistar, approximately $1.6 billion of debt is covered; and for Millennium Chemicals, approximately $400 million of debt is covered by these actions. The Rating Watch Negative follows Lyondell's announcement that it had entered into a definitive agreement under which Basell will acquire all the outstanding shares of Lyondell for $48 per common share in an all cash transaction with a total enterprise value of approximately $19 billion, including the assumption of debt. Fitch expects to downgrade the ratings at least one notch. Fitch also placed Basell's 'BB-' IDR rating on Rating Watch Negative. The transaction has been unanimously approved by the Board of Directors of Basell and Lyondell, and is expected to close during the next several months. Also the transaction is subject to regulatory approval and the approval of Lyondell shareholders. Fitch recognizes that Lyondell's senior unsecured notes due 2014, 2016 and 2017 contain tight covenants including restricted payment limitations and change of control provisions, which the latter allows bondholders to put the bonds to the company for redemption of 101% of the aggregate amount outstanding. Similarly, Equistar's senior unsecured notes due 2008 and 2011 have the same protections as well. These notes are likely to be repaid subsequent to the close of the transaction. Fitch expects to resolve the Rating Watch Negative upon closure of the transaction and review of the resulting capital structures at Lyondell and its subsidiaries. Lyondell holds leading global positions in propylene oxide and derivatives, as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid, and vinyl acetate monomer. Lyondell also has substantial refining operations located in Houston, TX. The company benefits from strong technology positions and barriers to entry in its major product lines. Lyondell owns 100% of Equistar; 70.5% directly and 29.5% indirectly through its wholly owned subsidiary Millennium. Basell was formed in 2000 when its previous shareholders BASF and Shell combined their respective polypropylene businesses with their existing polyethylene joint venture. Following the LBO, the group is owned by affiliated companies of Access Industries Group, a New York- based private equity firm. LYONDELL CHEMICAL: Moody's Reviews Ba3 Corporate Family Rating -------------------------------------------------------------- Moody's Investors Service placed the ratings of Lyondell Chemical Company, Equistar Chemical Company LP and Millennium Chemicals Inc. (Corporate Family Ratings of Ba3) under review for possible downgrade following the announcement that Lyondell agreed to be acquired by Basell AF SCA (Ba3 CFR under review for possible downgrade) in a transaction worth roughly $19 billion including the assumption of debt. This transaction is subject to regulatory review and approval by Lyondell's shareholders. The boards of both companies have approved the transaction. Moody's also affirmed Lyondell's speculative grade liquidity rating at SGL-1. However, the financing of this potential transaction, could result in a change to the SGL rating as well. Basell remains under review for possible downgrade as of July 17, 2007, following the announcement of its proposed acquisition of Lyondell. Moody's review will focus on i. financing of the proposed transaction, ii. the financial metrics of the combined company including projected synergies, iii. its financial policies and the prospects for meaningful debt reduction over the next two to three years, and iv. strategy for future global growth. Financing for the transaction has not been disclosed On review for possible downgrade: Issuer: Lyondell Chemical Company -- Corporate Family Rating, currently Ba3 -- Probability of Default Rating, currently Ba3 -- Senior Secured Bank Credit Facility, currently Ba2 -- Senior Secured Regular Bond/Debenture, currently Ba2 -- Senior Unsecured Medium-Term Note Program, currently B1 -- Senior Unsecured Regular Bond/Debenture, currently B1 Issuer: Equistar Chemicals, LP -- Corporate Family Rating, currently Ba3 -- Probability of Default Rating, currently Ba3 -- Senior Unsecured Regular Bond/Debenture, B1 Issuer: Millennium America Inc. -- Senior Unsecured Regular Bond/Debenture, currently B1 Issuer: Millennium Chemicals Inc. -- Probability of Default Rating, currently Ba3 -- Corporate Family Rating, currently Ba3 -- Senior Unsecured Conv./Exch. Bond/Debenture, currently B1 Headquartered in Houston, Texas, Lyondell Chemical Company is a leading global producer of petrochemicals and plastics, and owns a refinery with the unique ability to process 100% heavy sour crude oil from Venezuela. Lyondell produces propylene oxide, MTBE, ETBE and butanediol, as well as co-product styrene. Equistar Chemicals LP and Millennium Chemicals Inc. are wholly owned subsidiaries of Lyondell. Equistar is a leading North American producer of commodity petrochemicals and plastics. Millennium Chemicals is a single-site producer of acetic acid and vinyl acetate monomer and small producer of turpenes. Lyondell had revenues of over $23 billion for the LTM ending March 31, 2007 on a pro forma basis. Basell is the world's largest producer of polypropylene, a leading supplier of polyethylene, and a global leader in the development and licensing of polypropylene and polyethylene processes and related catalyst sales. In 2006, the company reported revenues of EUR10.5 billion and EBITDA of EUR1.1 billion. MARIA RIOS: Case Summary & Nine Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Maria Rios 2405 Chinon Street Bakersfield, CA 93311 Bankruptcy Case No.: 07-11842 Chapter 11 Petition Date: June 22, 2007 Court: Eastern District of California (Fresno) Judge: W. Richard Lee Debtor's Counsel: Phillip W. Gillet, Jr., Esq. 1705 27th Street Bakersfield, CA 93301-2807 Tel: (661) 323-3200 Total Assets: $4,044,240 Total Debts: $2,660,398 Debtor's Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America $27,419 P.O. Box 1598 Norfolk, VA 23501 Fairchild Fine Furniture $8,082 c/o Lamb & Michael 1314 G. Street Modesto, CA 95354 Coaster Co. of America $6,670 c/o Michael D. Frisher, Esq. 10880 Wilshire Boulevard, Suite 2240 Los Angeles, CA 90024 Penncro Associates, Inc. $1,447 E.R. Solutions $1,394 Meridian Financial Services $970 G.E.M.B./Old Navy $140 Discover Financial Services, $36 L.L.C. Sears/C.B.S.D. $13 MAYCO PLASTICS: Wants Court to Approve Settlement with GM --------------------------------------------------------- Mayco Plastics Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to approve a settlement with General Motors Corporation. The Debtors manufactured component parts to GM and GM issued tooling purchase orders to the Debtors for certain tooling used in the production of their component parts. As of the Debtors' bankruptcy filing, the Debtors claim that GM had accounts payable for component parts in the amount of $1,089,293 and accounts payable to the Debtors arising out of tooling purchase orders issued by GM in the amount of $1,015,185. Terms of the Settlement Under the proposed settlement, GM will pay $1.3 million to Mayco, constituting full payment and satisfaction of both the GM production payables and the GM tooling payables. The settlement payment must be paid to the Debtors' counsel and held in a trust until the resolution of all third party lien claims in tooling used to produce GM's component parts. The resolution must be either pursuant to a written agreement between the respective lien claimant, prepetition lenders and debtor; or pursuant to a Court order. The liens of prepetition lenders, and any third party with valid, perfected and enforceable liens in the GM Tooling will be released from the GM Tooling and transfer to the trust to same extent and priority that the liens were held on the petition date and GM will own all GM Tooling free and clear of all claims, liens and encumbrances. About Mayco Plastics Based in Sterling Heights, Michigan, Mayco Plastics Inc. -- http://www.mayco-mi.com/-- is an automotive supplier of injection molded plastics. Stonebridge Industries Inc., the majority shareholder and parent of Mayco Plastics, is an investment firm that acquires companies and helps them grow their business in order to increase shareholder value. Mayco and Stonebridge filed for chapter 11 protection on Sept. 12, 2006 (Bankr. E.D. Mich. Case Nos. 06-52727 & 06-52743). Stephen M. Gross, Esq., and Jeffrey S. Grasl, Esq., at McDonald Hopkins Co. LPA represent the Debtors. AlixPartners LLC serves as the Debtors' financial advisor. Shannon L. Deeby, Esq., at Clark Hill PLC is counsel to the Official Committee of Unsecured Creditors while Grant Thornton LLP serves as its Financial Advisor. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. MCKESSON CORP: Inks Definitive Agreement to Acquire Awarix ---------------------------------------------------------- McKesson Corporation has signed a definitive agreement to acquire Awarix Inc. The acquisition is expected to close by the end of July 2007, subject to customary conditions. "The enterprise patient care visibility system is a new category of healthcare technology focused on delivering accurate, real-time information to speed clinical decision time, reduce care delays, and manage scarce resources," Pamela Pure, president of McKesson Technology Solutions and executive vice president of McKesson Corporation, said. "Our customers have requested systems that can help maximize throughput and associated revenue while recommending the most efficient strategy to move a patient through the care process," Ms. Pure added. "This solution provides visibility, and visibility equals efficiency. The addition of the Awarix solution reinforces McKesson's goal of providing customers with technology to improve performance." "Emergency department challenges are most often caused by 'downstream' capacity issues in care areas such as the ICU, surgery, and observational beds," Gary York, founder of Awarix, said. "Bed management and departmental tracking boards can't address system-wide bottlenecks. Our breakthrough enterprise patient visibility system materially reduces the need to go on emergency department diversion. More efficient inpatient management also precludes the need for new construction." About Awarix Inc. Based in Birmingham, Alabama, Awarix Inc. - http://www.awarix.com/ -- is an enterprise patient care visibility system, a new category of health care technology that provides hospitals a communication platform that reliably delivers accurate, real-time information to all participants in the patient care process. About McKesson Corp. Headquartered in San Francisco, California, McKesson Corp. (NYSE: MCK) -- http://www.mckesson.com/-- provides pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. * * * Moody's Investors Service rated McKesson Corp.'s junior subordinated debt at Ba1. MERRILL LYNCH: S&P Preliminary Rates $5.096MM Class P Certs. at B- ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary ratings to Merrill Lynch Mortgage Trust 2007-C1's $4.1 billion commercial mortgage pass-through certificates series 2007-C1. The preliminary ratings are based on information as of July 17, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Classes A-1, A-2, A-3, A-SB, A-4, A-1A, AM, AJ, B, C, and D are currently being offered publicly. The remaining classes will be offered privately. Standard & Poor's analysis determined that, on a weighted average basis, the pool has a debt service coverage of 1.25x, a beginning LTV of 111.3%, and an ending LTV of 105.9%. The rated final maturity date for these certificates is July 2040. Preliminary Ratings Assigned Merrill Lynch Mortgage Trust 2007-C1 Recommended Class Rating* Amount credit Support ----- ------ ------ -------------- A-1* AAA $57,141,000 30.000% A-2* AAA $498,929,000 30.000% A-3* AAA $452,217,000 30.000% A-SB* AAA $91,341,000 30.000% A-4* AAA $457,880,000 30.000% A-1A* AAA $1,296,730,000 30.000% AM* AAA $407,749,000 20.000% AJ* AAA $336,392,000 11.750% B AA $86,647,000 9.625% C AA- $40,775,000 8.625% D A $45,871,000 7.500% A-2FL* AAA TBD 30.000% A-3FL* AAA TBD 30.000% A-4FL* AAA TBD 30.000% AM-FL* AAA TBD 20.000% AJ-FL* AAA TBD 11.750% E A- $45,872,000 6.375% F BBB+ $50,969,000 5.125% G BBB $40,775,000 4.125% H BBB- $40,774,000 3.125% J BB+ $15,291,000 2.750% K BB $15,291,000 2.375% L BB- $10,193,000 2.125% M B+ $10,194,000 1.875% N B $10,194,000 1.625% P B- $5,096,000 1.500% Q NR $61,163,260 0.000% X** AAA $4,077,484,260 N/A * Classes A-1, A-2, A-3, A-SB, A-4, A-1A, AM, A-2FL, A-3FL, A- 4FL, AM-FL, and AJ-FL receive interest and principal before class AJ. Losses are borne by class AJ before classes A-1, A- 2, A-3, A-SB, A-4, A-1A, AM, A-2FL, A-3FL, A-4FL, AM-FL, and AJ-FL, which will be applied pari passu. ** Interest-only class with a notional amount. TBD - To be determined. NR - Not rated. N/A - Not applicable. MICHAEL NELSON: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Michael B. Nelson aka Mike Nelson Angela Beth Nelson dba Nelson Duncan Salon aka Beth Nelson Nelson Contracting 2650 County Road 1246 Vinemont, Al 35179 Tel: (256) 739-2171 Bankruptcy Case No.: 07-81734 Chapter 11 Petition Date: July 10, 2007 Court: Northern District of Alabama (Decatur) Debtor's Counsel: S. Mitchell Howie, Esq. 107 North Side Square Huntsville, AL 35801 Tel: (256) 533-2400 Total Assets: $829,604 Total Debts: $1,772,378 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Merchants Bank bank loan; value $253,915 900 2nd Avenue Southwest of collateral: Cullman, AL 35055-4225 $50,900 First American Bank bank loan $201,974 P.O. Box 37 Birmingham, AL 35201-0037 Jeanice Galin $126,000 2530 County Road 1246 Vinemont, AL 35179-8362 Buettner Bros. Lumber Co., $120,000 Inc. I.R.S. $60,570 Merchants Bank $55,753 First American Bank bank loan $46,399 Gobble-Fite Lumber Co., $44,444 Inc. Chase Cardmember Service $25,500 Boral Bricks $18,982 Marvins Building Materials $12,849 Naylor Plumbing Co. $9,078 Marvins, Inc. $7,863 Kirkpatrick Concrete, Inc. $5,744 Bama Air Systems, Inc. $5,287 Alabama State Dept. of $5,000 Revenue U.S.A. D.C.A. Ready Mix $4,685 A.K. Rentals $3,221 D.&S. Hardware & Lumber, Inc. $3,050 Knight-Free Insurance $3,000 MICHAEL VELOTTA: Case Summary & Seven Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Michael F. Velotta, III 6783 Edinboro Place Concord Township, OH 44077 Bankruptcy Case No.: 07-15082 Chapter 11 Petition Date: July 6, 2007 Court: Northern District of Ohio (Cleveland) Judge: Arthur I. Harris Debtor's Counsel: Susan M. Gray, Esq. 21330 Center Ridge Road, Suite 11 Rocky River, OH 44116 Tel: (440) 331-3949 Total Assets: $1,502,463 Total Debts: $2,311,215 Debtor's Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Keybank real estate; value $604,369 P.O. Box 94825 of security: Cleveland, OH 44101 $450,000; value of senior lien: $204,000 Keybank N.A. real estate; value $604,369 127 Public Square of security: Cleveland, OH $295,493 44101-1306 I.R.S. civil penalty $569,136 1240 East 9th Street, Room 457 Cleveland, OH 44199 Allied Corp., Inc. breach of contract $105,075 Third Federal Savings real estate; value $84,000 of security: $450,000; value of senior lien: $808,369 J.P. Morgan Chase Bank, co-debtor $64,000 N.A. obligation Diversified Financial co-borrower $44,023 Services obligation MORGAN STANLEY: Fitch Lifts Rating on $8MM Class K Certs. to BB+ ---------------------------------------------------------------- Fitch Ratings upgrades these classes of Morgan Stanley Capital I Inc.'s commercial pass-through certificates, Series 1998-WF2 as: -- $21.2 million class F to 'AAA' from 'AA'; -- $23.9 million class G to 'A+' from 'A-'; -- $10.6 million class H to 'BBB+' from 'BBB'; -- $8.0 million class J to 'BBB' from 'BBB-'; -- $8.0 million class K to 'BB+' from 'BB'. Fitch also assigns the Distressed Recovery rating: -- $5.3 million class M at 'CCC'/DR1. In addition, Fitch affirms these classes: -- $234.3 million class A-2 at 'AAA'; -- Interest only class X at 'AAA'; -- $53.1 million class B at 'AAA'; -- $47.8 million class C at 'AAA'; -- $53.1 million class D at 'AAA'; -- $21.2 million class E at 'AAA'; -- $15.9 million class L at 'B-'. Fitch does not rate the $2.5 million class N. The class A-1 certificates have paid in full. The rating upgrades reflect the increased credit enhancement due to scheduled amortization and loan payoffs, since Fitch's last rating action. The assignment of the distressed recovery rating is as a result of expected losses associated with the specially serviced loan. As of the July 2007 distribution date, the pool's aggregate balance has been reduced 52.4%, to $504.9 million from $1.06 billion at issuance. Since issuance, six loans (7%) have defeased. There is currently one (0.4%) loan in special servicing and losses are expected. The loan is secured by a retail property located in Lansing, MI and is 90 days delinquent. The property remains 100% vacant, since K-Mart's subtenant vacated in 2002. The special servicer is pursuing foreclosure. MORGAN STANLEY: S&P Assigns Junk Ratings on Two Cert. Classes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Morgan Stanley Capital I Trust 2007-HQ12's $1.96 billion commercial mortgage pass-through certificates series 2007- HQ12. The preliminary ratings are based on information as of July 17, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the fiscal agent, the economics of the underlying loans, and the geographic and property type diversity of the loans. Standard & Poor's Ratings Services' analysis determined that, on a weighted average basis, the pool has a debt service coverage of 1.19x, a beginning LTV of 126.6%, and an ending LTV of 123.9%. Preliminary Ratings Assigned Morgan Stanley Capital I Trust 2007-HQ12 Recommended Class Rating Amount credit Support ----- ------ ------ -------------- A1 AAA $40,000,000 30.000% A1-A AAA $366,041,000 30.000% A-2 AAA $684,100,000 30.000% A-3 AAA $131,500,000 30.000% A-4 AAA $66,354,000 30.000% A-5 AAA $83,000,000 30.000% A-J AAA $144,444,000 12.625% B AA $41,620,000 10.500% C AA- $22,033,000 9.375% D A $24,482,000 8.125% E A- $14,690,000 7.375% F BBB+ $24,482,000 6.125% G BBB $22,034,000 5.000% H BBB- $22,033,000 3.875% J BB+ $14,690,000 3.125% K BB $4,896,000 2.875% L BB- $7,345,000 2.500% M B+ $4,896,000 2.250% N B $4,897,000 2.000% O B- $4,896,000 1.750% P CCC+ $4,896,000 1.500% Q CCC $4,896,000 1.250% S NR $24,483,351 - X* AAA $1,958,564,351 30.000% * Interest-only class with a notional amount. MYSTIQUE ENERGY: Completes $19.2 Million Sale of Oil & Gas Assets ----------------------------------------------------------------- Mystique Energy Inc. has closed the sale of its remaining oil and gas assets and tax pools to a Calgary-based petroleum company for gross proceeds of $19.2 million. The effective date of the Asset Sale is June 1, 2007. Net proceeds from the Asset Sale will be used to eliminate Mystique's debt to its primary lender and other secured creditors. The remaining proceeds will be distributed to unsecured creditors. The Alberta Court of Queen's Bench provided Mystique creditor protection under the companies' Creditors Arrangement Act on April 24, 2007. The order granting CCAA protection expired on July 17, 2007. In this connection, an application for an extension to the order until Oct. 15, 2007, was approved by the Court. The extension until will allow time for all adjustments under the terms of purchase and sale agreement of the Asset Sale to be concluded and for Mystique to prepare and submit to the Court, a plan of arrangement whereby all or substantially all of the remaining proceeds from the Asset Sale will be distributed to the unsecured creditors on a pro rata basis. The plan of arrangement must be approved by a requisite majority of the unsecured creditors and the Court. About Mystique Energy Headquartered in Alberta, Canada, Mystique Energy Inc. -- http://www.mystiqueenergy.ca/-- (TSXV: MYS) is a junior oil & gas company focused on exploration and development of petroleum and natural gas reserves, with production in western Alberta. NAAC REPERFORMING: Moody's Reviews B2 Rating on Two Cert. Classes ----------------------------------------------------------------- Moody's Investors Service placed under review for possible downgrade two certificates from NAAC Reperforming Loan Remic Trust Certificates, Series 2004-R1 and 2004-R2. The transactions consist of securitizations of FHA insured and VA guaranteed re-performing loans, virtually all of which were repurchased from GNMA pools. The insurance covers a large percent of any losses incurred as a result of borrower defaults. The two most subordinate Moody's-rated certificates from the two transactions have been placed on review for possible downgrade because existing credit enhancement levels are low given the current projected losses on the underlying pools. Currently there is only a small amount of credit enhancement for the two transactions in the form a subordinate bond. Complete rating actions are: Issuer: NAAC Reperforming Loan REMIC Trust Certificates Review for downgrade: -- Series 2004-R1; Class B-4, current rating B2, under review for possible downgrade; -- Series 2004-R2; Class B-4, current rating B2, under review for possible downgrade. NAGY GOLF: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Nagy Golf and Turf, Inc. 6643 East Alder Avenue Mesa, AZ 85206 Bankruptcy Case No.: 07-03375 Type of business: The Debtor is a dealer of golf carts and golf cars. Chapter 11 Petition Date: July 17, 2007 Court: District of Arizona (Phoenix) Judge: Charles G. Case II Debtor's Counsel: Donald W. Powell, Esq. Carmichael & Powell, P.C. 7301 North 16th street, Suite 103 Phoenix, AZ 85020 Tel: (602) 861-0777 Fax: (602) 870-0296 Estimated Assets: $180,000 Estimated Debts: $2,373,264 The Debtor did not file a list of its 20 largest unsecured creditors. NOMURA ASSET: Moody's Reviews Ratings on Four Certificate Classes ----------------------------------------------------------------- Moody's Investors Service placed under review for possible downgrade eight tranches from three deals issued by Nomura Asset Acceptance Corporation in 2006. The collateral backing these classes consists of primarily first lien, fixed and adjustable- rate, Alt-A mortgage loans. The ratings were placed under review for downgrade based on higher than anticipated rates of delinquency in the underlying collateral compared to current credit enhancement levels. Complete rating actions are: Issuer: Nomura Asset Acceptance Corporation, Alternative Loan Trust -- Series 2006-AF2, Class C-B-3, current rating Baa2, under review for possible downgrade -- Series 2006-AF2, Class V-M-5, current rating Baa3, under review for possible downgrade -- Series 2006-AR1, Class V-M-5, current rating Baa3, under review for possible downgrade -- Series 2006-AR2, Class III-M-5, current rating Baa3, under review for possible downgrade -- Series 2006-AR2, Class C-B-4, current rating Ba2, under review for possible downgrade -- Series 2006-AR1, Class B-4, current rating Ba2, under review for possible downgrade -- Series 2006-AR2, Class C-B-5, current rating B2, under review for possible downgrade -- Series 2006-AR1, Class B-5, current rating B2, under review for possible downgrade NORMAN QUINTERO: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Norman Alberto Quintero Miriam Carolina Quintero 452 Wyndemere Boulevard Heath, TX 75032 Bankruptcy Case No.: 07-33404 Chapter 11 Petition Date: July 17, 2007 Court: Northern District of Texas (Dallas) Judge: Stacey G. Jernigan Debtor's Counsel: Areya Holder Pronske, Esq. Areya Holder Pronske, P.C. 800 West Airport Freeway, Suite 540 Irving, TX 75062 Tel: (972) 438-8800 Fax: (972) 438-8825 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. OMEGA HEALTHCARE: Board Declares Common & Preferred Stock Dividend ------------------------------------------------------------------ Omega Healthcare Investors Inc.'s board of directors declared a common stock dividend of $0.27 per share and declared its regular quarterly dividend for the company's Series D preferred stock. The company's board disclosed a common stock dividend of $0.27 per share, payable on Aug. 15, 2007, to common stockholders of record on July 31, 2007. The company had approximately 67.7 million outstanding common shares. The company's board also declared its regular quarterly dividend for the Series D preferred stock, payable Aug. 15, 2007 to preferred stockholders of record on July 31, 2007. Series D preferred stockholders of record on July 31, 2007 will be paid dividends in the approximate amount of $0.52344, per preferred share on Aug. 15, 2007. The liquidation preference for the company's Series D preferred stock is $25 per share. Regular quarterly preferred dividends represent dividends for the period May 1, 2007 through July 31, 2007. About Omega HealthCare Headquartered in Timonium, Maryland, Omega HealthCare Investors, Inc. (NYSE:OHI) -- http://www.omegahealthcare.com/-- is a real estate investment trust investing in and providing financing to the long-term care industry. At Dec. 31, 2006, the company owned or held mortgages on 239 skilled nursing facilities and assisted living facilities with approximately 27,302 beds located in 27 states and operated by 32 third-party healthcare operating companies. * * * Omega Healthcare's 7% Senior Notes due 2014 holds Moody's Investors Service's Ba3 rating, and Standard & Poor's and Fitch Ratings' BB rating. OPTION ONE: Moody's Lowers Class M-7 Certificate's Rating to B1 --------------------------------------------------------------- Moody's Investors Service downgraded one tranche from one deal and confirmed the rating on three tranches from two deals all with loans originated by Option One Mortgage Corporation in 2002 or 2004. The transactions consist of primarily first lien, adjustable and fixed-rate subprime mortgage loans. The loans are serviced by Option One Mortgage Corporation. Although the 2004-1 deal's losses are performing within the area of original expectations, the subordinate certificates are being downgraded based on existing credit enhancement levels relative to the current projected losses on the underlying pool. Overcollateralization in the transaction is currently below its target and pipeline losses could cause further depletion of the overcollateralization and put pressure on the most subordinate tranches. Most of the current credit support deterioration can be attributed to the deal passing performance triggers and therefore releasing a large amount of overcollateralization. Finally, Moody's has confirmed the current ratings on the Class M- 6 certificates from MASTR Asset Backed Securities Trust 2002-OPT1 and on the Class M-6 and M-7 certificates from Option One Mortgage Loan Trust 2004-2 as credit support, provided by subordination, excess spread, overcollateralization, and mortgage insurance, is sufficient to support the current ratings on these certificates. The complete rating actions are: Downgrade: Issuer: Option One Mortgage Loan Trust -- Series 2004-1; Class M-7, downgraded from Ba1 to B1 Confirm: Issuer: MASTR Asset Backed Securities Trust -- Series 2002-OPT1; Class M-6, confirmed at Ba1 Issuer: Option One Mortgage Loan Trust -- Series 2004-2; Class M-6, confirmed at Baa3 -- Series 2004-2; Class M-7, confirmed at Ba1 OSCAR ROJAS: Case Summary & Eight Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Oscar Vaz Rojas P.O. Box 1823 San Juan, PR 00936-1823 Bankruptcy Case No.: 07-04015 Chapter 11 Petition Date: July 17, 2007 Court: District of Puerto Rico (Old San Juan) Debtor's Counsel: Carlos Rodriguez Quesada, Esq. P.O. Box 9023115 San Juan, PR 00902-3115 Tel: (787) 724-2867 Fax: (787) 724-2463 Total Assets: $1,983,070 Total Debts: $2,542,943 Debtor's List of its Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Maritza Villamil Property Settlement $1,062,000 Cond. Playa Serena 7063 Carr. 187 Apartment 503 Carolina, PR 00979-7033 Turaser Inc. Loan $405,602 Calle Beleares Suite 352- Altos Esquina FD Roosevelt San Juan, PR 00920 Viajes Galiana, Inc. Loan $120,693 P.O. Box 195499 San Juan, PR 00919-5499 First Bank Personal Loan $54,078 Dova Construction Civil Action $23,000 Banco Popular de Puerto Rico Credit Card $10,781 First Bank PR Bank Loan $7,000 BBVA Credit Card $1,109 PACER HEALTH: Closes New $5.5 Million Secured Credit Facility ------------------------------------------------------------- Pacer Health Corporation has closed on a new $5.5 million five- year secured credit facility with Cornell Capital Partners LP. The new facility replaces a $1 million, three-year credit facility that was set to expire on April 1, 2009, and a $1 million, three- year credit facility that was set to expire on May 5, 2009, which were both issued by Cornell Capital. The new credit facility will be used for general corporate purposes and future acquisitions. The debentures, which are convertible at $0.02 prior to maturity and at the lower of $0.02 or 80% of the lowest volume weighted average price of the common stock for the 15 trading days immediately preceding the maturity date, require Pacer to register certain shares of common stock for resale by selling security holders of its common stock, including shares issued to Cornell Capital. "The terms of the new facility demonstrate the significant progress Pacer has made over the past four years," Rainier Gonzalez, chief executive officer, said. "We view this new credit facility as further validation of our business model and financial discipline." "The new credit facility provides us with additional capital to help fuel our growth," Mr. Gonzalez also said. "We expect to take advantage of additional opportunities to improve our overall operations and optimize our capital structure as we move forward." About Pacer Health Corporation Headquartered in Miami, Florida, Pacer Health Corporation (OTCBB: PHLH) -- http://www.pacerhealth.com/-- is an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities serving non-urban areas throughout the Southeast. At March 31, 2007, the company's balance sheet showed total assets of $16 million and total liabilities of $23.5 million, resulting to a total stockholders' deficit of $7.5 million. PALM INC: Moody's Assigns Corporate Family Rating at B1 ------------------------------------------------------- Moody's Investors Service assigned a B1 corporate family rating to Palm, Inc. and Ba3 ratings to $40 million senior secured revolving credit facility due 2012 and $400 million senior secured first lien term loan due 2014. The company is using the debt financing as well as $229 million in cash from the balance sheet and $325 million in preferred equity contribution from Elevation Partners to provide shareholders a one time dividend of $934 million. Excluding treatment for the preferred equity, the transaction brings the company's leverage to 3.3x Moody's adjusted debt to pro forma EBITDA for last twelve months as of May 31, 2007 and lowers cash balances to about $382 million. Moody's also assigned a speculative grade liquidity rating of SGL-2, reflecting good financial liquidity. The ratings outlook is stable. Palm's B1 corporate family rating reflects: i. highly competitive and volatile nature of the converged mobile device market; ii. company's relatively small market share in the smartphone business; and iii. the company's recently declining revenues and EBITDA and the expectations of continued decline in EBITDA. The rating is supported by: i. the company's good market position in small to medium business smartphone markets; ii. the company's history of developing user friendly products with a loyal customer base; iii. the high growth expectations of the converged mobile device market; and iv. modest financial leverage with significant liquidity. These ratings were assigned: -- Corporate family rating: B1 -- Probability of default rating: B1 -- $40 million 5-year First lien Revolving Credit Facility: Ba3, LGD3, 42% -- $400 million 6.5-year First Lien Senior Secured Term Loan: Ba3, LGD3, 42% -- Speculative Grade Liquidity Rating: SGL-2 The rating outlook is stable. The ratings could be pressured upwards were the company to: i. significantly improve its market position by increasing its market share and expanding its product line; ii. significantly deleverage, with debt to EBITDA falling to less than 2.5x; iii. sustain high growth in revenues with improvement in profitability metrics; and iv. generate significant positive free cash flow such that FCF / Debt is greater than 20% on a sustained basis. The ratings could face downward pressure if the company experiences disruptions in producing its next generation product portfolio or experiences greater than anticipated declines in revenue or EBITDA for its existing portfolio. The ratings could also be impacted if the company pursues additional debt financed dividends. Headquartered in Sunnyvale, California, Palm, Inc. is a provider of smartphones and handheld computers. The company generated revenues of $1.6 billion for the fiscal year ended May 31, 2007. PASCO COUNTY: Moody's Affirms Ba3 Rating on $1.36 Million Bonds --------------------------------------------------------------- Moody's Investors Service affirmed the Ba3 rating on $1.36 million outstanding Pasco County Federal Assisted Housing, Inc, Mortgage Revenue Bonds, Series 1979 (Hudson Hills-Section 8). The outlook on the bonds has been revised to negative. The rating affirmation is based on financial performance of the project as of the Sept. 30, 2006 audit. Hudson Hills is a 64 unit project for families located in the Tampa MSA. Legal Security: The bonds are limited obligations of the issuer. Strengths Both the debt service reserve and the reserve for replacement funds are fully funded. Rents for the property as of July 2007 are below the Fair Market Rents for the Tampa-St. Petersburg MSA, suggesting that the property might be eligible for a rent increase from HUD in the future. According to management, a new incentive program has been instituted for the property manager for lease up and rent collection; in addition, the authority has decreased some of the expenses allocated to the property. Challenges Revenue increases for the property have not kept up with the increases in expenses in the past five years, leading to a significant decline in debt service coverage; to help the property cover debt service and operating expenses, the Issuer, Pasco County Housing Authority, contributed cash to the project each year between 2003 and 2006. In fiscal year 2007, the Housing Authority reported that they stopped making contributions to the property, compelling the property to stand on its own financially going forward. The property has a small number of units, 64, which amplifies the impact of vacancies on project revenue; as if July 2007, occupancy of the project was about 91%. Recent Developments Audited financials for 2005 and 2006 show coverage at 0.77x and 0.51x, which continues the trend of low coverage experienced since 2001. Between 2003 and 2006, the Pasco County Housing Authority contributed enough cash to the project to cover operating expenses and debt service, bringing debt service coverage up above 1 times coverage for all 4 years. However, as of 2007 the authority is no longer contributing funds to the property. Outlook The outlook on the bonds is negative, due to the long history of low debt service coverage and the fact that the Authority's cash infusions have been discontinued. What could change the rating- Up -- A sustained increase in revenues and debt service coverage. What could change the rating- Down -- Tapping of the debt service reserve. Key Statistics as of Sept. 30, 2006, unless noted: -- Recent Reported Occupancy: 91% (July 2007) -- HAP Contract Expiration Date: September 1, 2020 -- Bond Maturity: April 1, 2020 -- HUD REAC Score: 89c (11/06) PLAINS EXPLORATION: To Acquire Pogo Producing for $3.6 Billion -------------------------------------------------------------- Plains Exploration & Production Company has entered into a definitive agreement with Pogo Producing Company, in connection with the company acquiring Pogo in a stock and cash transaction valued at approximately $3.6 billion, based on PXP's closing price on July 16, 2007. Under the terms of the agreement, Pogo stockholders will receive 0.68201 shares of PXP common stock and $24.88 of cash for each share of Pogo common stock which represents a total consideration of approximately $60 per Pogo share. Total consideration for outstanding Pogo shares is 40 million PXP shares and approximately $1.5 billion in cash. "This accretive transaction represents a significant opportunity for the shareholders of both companies to benefit from the combined strengths of PXP and Pogo," James C. Flores, chairman, president and chief executive officer of PXP, commented. "Along with asset diversification and significant cost savings, the combined company will have a total estimated reserve potential of 1.4 billion barrels of oil equivalent (proved, probable and possible). "This transaction almost doubles PXP's production with the addition of substantial producing properties and significant growth potential in Texas, primarily the Panhandle, Permian and Gulf Coast, plus the prolific Madden Field in Wyoming and the San Juan Basin in New Mexico," Mr. Flores added. "Since most of the Pogo assets are complementary to the profiles of the PXP assets, with long production lives and low decline rates, PXP will now be positioned to create one of the 'best-in-class' MLPs in the E&P marketplace. PXP has retained Lehman Brothers as financial advisor to formalize the company's evaluation of a potential MLP filing." "This transaction represents a significant milestone in the proud and productive 38-year history of Pogo Producing Company," Paul G. Van Wagenen, chairman, president and chief executive officer of Pogo, said. "This transaction with Plains Exploration & Production Company creates a combined company with impressive financial and operational strength able to successfully capture the best of opportunities in our industry. We look forward to a prosperous future of great accomplishments benefiting our shareholders." After the acquisition, pro forma PXP will have a proved reserve base of approximately 635 million barrels of oil equivalent and a total estimated reserve potential of 1.4 billion barrels of oil equivalent. At year-end 2006 pro forma for asset sales, Pogo reported 219 million barrels of oil equivalent proven reserves. Terms and Conditions Under the terms of the definitive agreement, Pogo stockholders have the right to elect to receive cash or stock, subject to proration. The transaction is expected to qualify as a tax-free reorganization under Section 368(a) and is expected to be tax free to Pogo stockholders. The boards of both companies have unanimously approved the merger agreement and each will recommend the transaction to their respective stockholders for approval. The transaction will remain subject to stockholder approval from both companies and other customary conditions. In addition, Pogo have entered into support agreements whereby Paul G. Van Wagenen, chairman, president and chief executive officer of Pogo and Third Point LLC have agreed to vote their shares in Pogo in favor of the proposed transaction. The companies anticipate completing the transaction in the fourth quarter of 2007. Post closing, it is anticipated that the PXP stockholders will own approximately 66% of the combined company and Pogo stockholders will own approximately 34% of the combined company. Mr. Flores will remain the chairman, president and chief executive officer and PXP's current executive staff Winston M. Talbert, executive vice president & CFO, John F. Wombwell, executive vice president and general counsel, and Doss R. Bourgeois, executive vice president exploration & production, will continue in their current capacities. Two members of the Pogo board will join the PXP Board at closing. Lehman Brothers Inc. acted as financial advisor to PXP. Goldman, Sachs & Co. and TD Securities Inc., acted as financial advisor to Pogo. About Pogo Producing Headquartered in Houston, Texas, Pogo Producing Company (NYSE: PPP) -- http://www.pogoproducing.com/-- explores for, develops and produces oil and natural gas. Pogo owns approximately 4,000,000 gross leasehold acres in major oil and gas provinces in North America, 3,119,000 acres in New Zealand and 1,480,000 acres in Vietnam. About Plains Exploration & Production Headquartered in Houston, Plains Exploration & Production Co. (NYSE: PXP) - http://www.plainsxp.com/-- is an independent oil and gas company primarily engaged in the upstream activities of acquiring, developing, exploiting, exploring and producing oil and gas in its core areas of operation: onshore and offshore California, Colorado and the Gulf Coast region of the United States. * * * As reported in the Troubled Company Reporter on April 23, 2007, Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Plains Exploration & Production Co. At the same time, S&P placed its 'BB-' unsecured issue rating for PXP on CreditWatch with negative implications. The outlook remains stable. POGO PRODUCING: To Sell Assets to Plains Exploration for $3.6 Mil. ------------------------------------------------------------------ Plains Exploration & Production Company has entered into a definitive agreement with Pogo Producing Company, in connection with the company acquiring Pogo in a stock and cash transaction valued at approximately $3.6 billion, based on PXP's closing price on July 16, 2007. Under the terms of the agreement, Pogo stockholders will receive 0.68201 shares of PXP common stock and $24.88 of cash for each share of Pogo common stock which represents a total consideration of approximately $60 per Pogo share. Total consideration for outstanding Pogo shares is 40 million PXP shares and approximately $1.5 billion in cash. "This accretive transaction represents a significant opportunity for the shareholders of both companies to benefit from the combined strengths of PXP and Pogo," James C. Flores, chairman, president and chief executive officer of PXP, commented. "Along with asset diversification and significant cost savings, the combined company will have a total estimated reserve potential of 1.4 billion barrels of oil equivalent (proved, probable and possible). "This transaction almost doubles PXP's production with the addition of substantial producing properties and significant growth potential in Texas, primarily the Panhandle, Permian and Gulf Coast, plus the prolific Madden Field in Wyoming and the San Juan Basin in New Mexico," Mr. Flores added. "Since most of the Pogo assets are complementary to the profiles of the PXP assets, with long production lives and low decline rates, PXP will now be positioned to create one of the 'best-in-class' MLPs in the E&P marketplace. PXP has retained Lehman Brothers as financial advisor to formalize the company's evaluation of a potential MLP filing." "This transaction represents a significant milestone in the proud and productive 38-year history of Pogo Producing Company," Paul G. Van Wagenen, chairman, president and chief executive officer of Pogo, said. "This transaction with Plains Exploration & Production Company creates a combined company with impressive financial and operational strength able to successfully capture the best of opportunities in our industry. We look forward to a prosperous future of great accomplishments benefiting our shareholders." After the acquisition, pro forma PXP will have a proved reserve base of approximately 635 million barrels of oil equivalent and a total estimated reserve potential of 1.4 billion barrels of oil equivalent. At year-end 2006 pro forma for asset sales, Pogo reported 219 million barrels of oil equivalent proven reserves. Terms and Conditions Under the terms of the definitive agreement, Pogo stockholders have the right to elect to receive cash or stock, subject to proration. The transaction is expected to qualify as a tax-free reorganization under Section 368(a) and is expected to be tax free to Pogo stockholders. The boards of both companies have unanimously approved the merger agreement and each will recommend the transaction to their respective stockholders for approval. The transaction will remain subject to stockholder approval from both companies and other customary conditions. In addition, Pogo have entered into support agreements whereby Paul G. Van Wagenen, chairman, president and chief executive officer of Pogo and Third Point LLC have agreed to vote their shares in Pogo in favor of the proposed transaction. The companies anticipate completing the transaction in the fourth quarter of 2007. Post closing, it is anticipated that the PXP stockholders will own approximately 66% of the combined company and Pogo stockholders will own approximately 34% of the combined company. Mr. Flores will remain the chairman, president and chief executive officer and PXP's current executive staff Winston M. Talbert, executive vice president & CFO, John F. Wombwell, executive vice president and general counsel, and Doss R. Bourgeois, executive vice president exploration & production, will continue in their current capacities. Two members of the Pogo board will join the PXP Board at closing. Lehman Brothers Inc. acted as financial advisor to PXP. Goldman, Sachs & Co. and TD Securities Inc., acted as financial advisor to Pogo. About Plains Exploration & Production Headquartered in Houston, Plains Exploration & Production Co. (NYSE: PXP) - http://www.plainsxp.com/-- is an independent oil and gas company primarily engaged in the upstream activities of acquiring, developing, exploiting, exploring and producing oil and gas in its core areas of operation: onshore and offshore California, Colorado and the Gulf Coast region of the United States. About Pogo Producing Headquartered in Houston, Texas, Pogo Producing Company (NYSE: PPP) -- http://www.pogoproducing.com/-- explores for, develops and produces oil and natural gas. Pogo owns approximately 4,000,000 gross leasehold acres in major oil and gas provinces in North America, 3,119,000 acres in New Zealand and 1,480,000 acres in Vietnam. * * * As reported in the Troubled Company Reporter on May 31, 2007, Standard & Poor's Ratings Services said that its 'BB' corporate credit rating on Pogo Producing Co. remains on CreditWatch with developing implications following the company's announcement that it is selling its Canadian oil- and gas-producing subsidiary for $2 billion. POLYPORE INTERNATIONAL: IPO Completion Cues S&P's Positive Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Charlotte, North Carolina-based Polypore International Inc. and its subsidiary Polypore Inc. to positive from stable. At the same time, S&P affirmed its ratings on both companies, including the 'B' corporate credit rating. "The outlook revision reflects the completion of a $285 million IPO, proceeds of which have been applied to debt reduction, and the resulting improvement in credit protection measures," said Standard & Poor's credit analyst Gregoire Buet. The ratings continue to reflect Polypore's highly leveraged financial risk profile, characterized by high, though reduced, debt levels and weak credit metrics. The company manufactures microporous membranes for use in energy storage and separations applications. Polypore derives about 70% of revenues from separators for lead- acid batteries used in transportation and industrial applications as well as for disposable and rechargeable lithium batteries. The lead-acid market tends to be mature and stable, although growth opportunities exist in emerging markets. The lithium business benefits from strong growth prospects, but can be volatile. Polypore's other business includes filtration membranes used by makers of health-care, food and beverage, and industrial separations equipment. PRESIDENT CASINOS: Posts Net Loss of $354,000 in Qtr. Ended May 31 ------------------------------------------------------------------ President Casinos Inc. reported a net loss of $354,000 for the first quarter ended May 31, 2007, compared with a net loss of $876,000 for the same period ended May 31, 2006. As of May 31, 2007, the company had sold its St. Louis and Biloxi operations. As such, revenues for the three-month period ended May 31, 2006, are classified in discontinued operations. There were no operating revenues for the three-month period ended May 31, 2007. The decrease in net loss is primarily attributable to the $319,000 decrease in the company's consolidated selling, general and administrative expenses, a $57,000 increase in interest income, and a $77,000 decrease in loss from discontinued operations. In addition, the company incurred no minority interest expense during the three-month period ended May 31, 2007, compared to $68,000 during the three-month period ended May 31, 2006. As of May 31, 2007, the company's balance sheet showed $6.1 million in total assets, $4.2 million in total liabilities, and $1.9 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended May 31, 2007, are available for free at http://researcharchives.com/t/s?21a0 Going Concern Doubt As reported in the Troubled Company Reporter on June 21, 2007, Deloitte & Touche LLP, in St. Louis, Missouri, expressed substantial doubt about President Casinos Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Feb. 28, 2007, and 2006. The auditing firm pointed to the company's recurring losses from continuing operations and absence of any ongoing revenue producing activities. About President Casinos Headquartered in St. Louis, Mo., President Casinos Inc. -- http://www.presidentcasino.com/-- does not have significant operations. Prior to Dec. 2006, it was engaged in the ownership and operation of a dockside gaming casino in St. Louis, Missouri. President Casinos filed for chapter 11 protection on June 20, 2002 (Bankr. S.D. Miss. Case No. 02-53055). On July 11, 2002, substantially all of Debtor's other operating subsidiaries filed for chapter 11 protection in the same Court. The Honorable Judge Edward Gaines ordered the transfer of President Casino's chapter 11 cases from Mississippi to Missouri. The case was reopened on Nov. 5, 2002 (Bankr. E.D. Mo. Case No. 02-53005). Brian Wade Hockett, Esq., at Hockett Thompson Coburn LLP, represents the Debtors in their restructuring efforts. David A. Warfield, Esq., at Blackwell Sanders Peper Martin LLP, represents the Official Committee of Unsecured Creditors. Thomas E. Patterson, Esq., and Ronn S. Davids, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP and E. Rebecca Case, Esq., and Howard S. Smotkin, Esq., at Stone, Leyton & Gershman, P.C., represent the Official Committee of Equity Security Holders. The company's business activities currently consist of managing its existing litigation matters, discharging its liabilities and administering the bankruptcy reorganization plans of its former Biloxi and St. Louis operations. RENEWABLE RESOURCES: Case Summary & 22 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Renewable Resources, Inc. 1801 Broadway, Suite 910 Denver, CO 80202 Tel: (303) 298-0041 Bankruptcy Case No.: 07-17680 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Midway Landfill, Inc. 07-17687 Tire Recycling, Inc. 07-17691 Chapter 11 Petition Date: July 17, 2007 Court: District of Colorado (Denver) Judge: Howard R. Tallman Debtors' Counsel: John C. Smiley, Esq. Lindquist & Vennum PLLP 600 17th Street, Suite 1800-S Denver, CO 80202 Tel: (303) 573-5900 Fax: (303) 573-1956 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million A. Renewable Resources, Inc.'s Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ron King Unsecured $1,200,000 c/o John Rhea Convertible Note 26 West Dry Creek Circle Suite 800 Littleton, CO 80120-4475 B. Midway Landfill, Inc.'s Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Tire Recycling, Inc. Working Capital $350,000 1801 Broadway, Suite 910 Advances Denver, CO 80202 C. Tire Recycling, Inc.'s List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Pride Coop. $44,583 55 West Bromley Lane Brighton, CO 80601 Air Liquide $43,976 P.O. Box 95148 Chicago, IL 60694-5198 Prime Trailer Leasing $42,437 P.O. Box 1129 Commerce City, CO 80222 Raytrans $32,542 Terra Firma $24,462 Power Screening $18,657 HO-AD Engineering $17,654 Pinnacot Assurance Group $13,454 Colorado Machinery $12,408 Weld Co. Treasurer Surcharge Fees $12,116 Design Technology, Inc. Expenses and $11,250 Consulting Fee Pulva $10,707 Green Bros. L.P. $8,924 Gas & Oil Co. First Ins. Funding Corp. Hudson Site Bond $8,017 Premium Permalife Products, LLC $6,799 Lawrence Lind, Attorneys $6,576 Design Technology, Inc. Expenses and $6,246 Consulting Fee Bank of Colorado $5,962 CW Mill Equipment $5,138 Advanced Trailer Leasing $3,351 RIVERDEEP INTERACTIVE: Moody's Reviews B3 Corporate Family Rating ----------------------------------------------------------------- Moody's Investors Service placed the B3 corporate family rating and all other ratings of Riverdeep Interactive Learning USA, Inc. on review for possible downgrade following its announced plan to acquire the Harcourt Education, Harcourt Trade and Greenwood- Heinemann divisions of Reed Elsevier. The review reflects Moody's concerns that the incremental debt and costs to achieve synergies will delay the previously expected decline in leverage. Moody's review will focus on the pro forma capital structure and the amount and likely timeframe for achievement of synergies and subsequent decline in leverage. A summary of Moody's actions are: Riverdeep Interactive Learning USA, Inc -- Corporate Family Rating, placed on review for possible downgrade, currently B3 -- Probability of Default Rating, placed on review for possible downgrade, currently B3 -- Senior Secured Bank Credit Facility, placed on review for possible downgrade, currently B1 Riverdeep Interactive Learning USA, Inc. is one of the largest U.S. educational publishers with revenues of about $1.4 billion for the fiscal period ended Dec. 21, 2006, pro forma for the acquisition of Houghton Mifflin. The company is headquartered in Dublin, Ireland. ROBERT STONE: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Robert L. Stone, II 5732 South Blackstone Chicago, IL 60637 Bankruptcy Case No.: 07-11329 Chapter 11 Petition Date: June 25, 2007 Court: Northern District of Illinois (Chicago) Judge: Jack B. Schmetterer Debtor's Counsel: Robert A. Habib, Esq. 77 West Washington Street, Suite 411 Chicago, Il 60602 Tel: (312) 201-1421 Fax: (312) 673-2110 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. SCOTT HYMAN: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Scott J. Hyman 212 Hemlock Shore Road Lakeville, MA 02347 Bankruptcy Case No.: 07-14415 Chapter 11 Petition Date: July 17, 2007 Court: District of Massachusetts (Boston) Judge: Joan N. Feeney Debtor's Counsel: Leonard Ullian, Esq. Ullian & Associates 220 Forbes Road, Suite 106 Braintree, MA 02184 Tel: (781) 848-5980 Fax: (781) 848-0819 Estimated Assets: Unknown Estimated Debts: Unknown The Debtor did not file a list of its 20 largest unsecured creditors. SOUNDVIEW HOME: Moody's Rates Class M-10 Certificates at Ba1 ------------------------------------------------------------ Moody's Investors Service assigned a Aaa rating to the senior certificates issued by Soundview Home Loan Trust 2007-OPT3 and ratings ranging from Aa1 to Ba1 to the subordinate certificates in the deal. The securitization is backed by adjustable-rate and fixed-rate, first lien, subprime residential mortgage loans originated by Option One Mortgage Corporation. The ratings are based primarily on the credit quality of the loans and on the protection against credit losses provided by subordination, overcollateralization, and excess spread. The ratings also benefit from an interest rate swap and interest rate cap agreement provided by The Bank of New York. Moody's expects collateral losses to range from 5.45% to 5.95%. Option One Mortgage Corporation will service the mortgage loans in the transaction. Moody's assigned Option One its servicer quality rating of SQ2+ as a primary servicer of subprime residential mortgage loans. The complete rating actions are: Soundview Home Loan Trust 2007-OPT3 Asset-Backed Certificates, Series 2007-OPT3 -- Cl. I-A-1, Assigned Aaa -- Cl. II-A-1, Assigned Aaa -- Cl. II-A-2, Assigned Aaa -- Cl. II-A-3, Assigned Aaa -- Cl. II-A-4, Assigned Aaa -- Cl. M-1, Assigned Aa1 -- Cl. M-2, Assigned Aa2 -- Cl. M-3, Assigned Aa3 -- Cl. M-4, Assigned A1 -- Cl. M-5, Assigned A2 -- Cl. M-6, Assigned A3 -- Cl. M-7, Assigned Baa1 -- Cl. M-8, Assigned Baa2 -- Cl. M-9, Assigned Baa3 -- Cl. M-10, Assigned Ba1 STONERIDGE INC: Moody's Rates New Senior Secured Term Loan at B1 ---------------------------------------------------------------- Moody's Investors Service assigned a B1 rating to Stoneridge, Inc.'s new senior secured term loan. In a related action, Moody's affirmed Stoneridge's Corporate Family, B1; and Probability of Default Ratings, B1. The rating outlook is negative. The ratings acknowledge the recent improvement in Stoneridge's financial performance but also consider the potential for variability in growth stemming from industry pressures in the company's light vehicle segment and regulatory requirements for OEMs in the company's commercial vehicle segment. During 2006 management responded to lower North American OEM volumes and pricing pressures, and operational inefficiencies in its Mexican and U.K operations with performance improvements, continued movement of operations to lower cost countries, and improved management of raw material requirements. These actions have resulted in improved operating performance over the prior year and improving credit metrics. However, consistent positive free cash flow generation may be challenging in 2007 due to weaker demand trends and the timing of payments to trade creditors which benefited 2006. Nevertheless, Moody's views the company's debt refinancing as a favorable development which should position the company for improved interest coverage in the near-term. The negative outlook considers that while Stoneridge's performance has improved since early 2006, the company's markets will continue to be challenged by the volume demand impact of tighter emission requirement in the commercial vehicle market in the near term and ongoing pricing pressures. The transaction extends the company's debt maturity profile, should provide interest savings, and will continue to provide adequate liquidity under new ABL revolving facility. These ratings were assigned: -- $200 million guaranteed senior secured term loan B1 (LGD3, 43%) These ratings were affirmed: -- B1 Corporate Family Rating; -- B1 Probability of Default Rating These ratings will be withdrawn upon their refinancing: -- Ba1 (LGD2, 14) for the $100 million senior secured revolving credit due 04/08 -- B2 (LGD4, 67%) for the $200 million of Gtd. Sr Unsecured Notes due 05/12 The new $100 million ABL senior secured revolving credit facility is not rated by Moody's. The last rating action was on Sept. 22, 2006 when the LGD Methodology was applied. For the last twelve months ended March 31, 2007, Stoneridge's total debt/EBITDA leverage was about 3.5x, EBIT/interest coverage was about 1.6x. Free cash flow for the trailing twelve month period ending March 31, 2007 was about positive $9 million. At March 31, 2007, the company maintained $54 million in cash and about $97 million of unused capacity under its $100 million revolving credit facility. Availability under the new ABL senior secured revolving credit is expected to be about $80 million based on borrowing base availability. Future events that could result in pressure on Stoneridge's ratings include continued reductions in OEM production volumes in either the light vehicle or commercial vehicle segments, rising raw materials prices, continued operating inefficiencies despite recent restructuring efforts, the inability to win new business with sufficient margins to offset customer price concessions, or inability to maintain an adequate liquidity profile. Consideration for lower ratings could arise if any combination of these factors were to increase leverage over 5x or deterioration in interest coverage falls below 1.5x. Future events that could stablize Stoneridge's rating outlook include the realization of incremental new business awards from both domestic transplants and foreign OEMs that will serve to diversify and globalize the customer base, rising average content per vehicle, stabilized raw material costs resulting in increased margins, and reduced financial leverage through application of cash flow to permanent debt reduction. Consideration for an improved outlook could arise if any combination of these factors were to reduce leverage consistently under 3.5x or increase EBIT/interest coverage consistently approaching 2x. Stoneridge, Inc., headquartered in Warren, Ohio, is a leading independent designer and manufacturer of highly engineered electrical and electronic components, modules and systems for the i. automotive and light truck, ii. medium and heavy-duty truck and iii. agricultural and off-road vehicle markets. The company's products interface with a vehicle's mechanical and electrical systems to activate equipment and accessories, display and monitor vehicle performance, and control and distribute electrical power and signals. Stoneridge's products improve the performance; safety; convenience; and environmental monitoring of its customers' vehicles. Annual revenues about $714 million. TANAMI TRADING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Tanami Trading Corporation 4805 Farm Lane Pine Bluff, AR 71603 Bankruptcy Case No.: 07-13783 Type of Business: The Debtor specializes in refrigerated transport in Arkansas, Tennessee, and Mississippi to the West Coast and North West. See http://www.leftlaneexpress.net/ Chapter 11 Petition Date: July 16, 2007 Court: Eastern District of Arkansas (Pine Bluff) Debtor's Counsel: Basil V. Hicks, Jr., Esq. P.O. Box 5670 North Little Rock, AR 72119-5670 Tel: (501) 301-7700 Fax: (501) 301-7999 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Wells Fargo Equipment 2x2007 Peterbilt $207,000 Finance Trucks Secured: Northwest 8178 $200,000 P.O. Box 1450 Minneapolis, MN 55485 MHC Financial Services, Inc. 2007 Kenworth Truck $105,250 P.O. Box 412852 Secured: Kansas City, MO 64141 $100,000 Navistar Financial Corp. 2x2007 Great $100,000 P.O. Box 4024 Dane Trailers Secured: Schaumburg, IL 60168 $81,000 Bank of Star City 2006 Kenworth Truck $88,500 Pilot Travel Centers, LLC $61,998 MHC Kenworth $15,674 Bank of America Credit Card Purchases $17,388 AON Truck Group $17,255 Internal Revenue Service 2290 Taxes $10,450 Knox Nelson Oil Co. $9,675 Qualcomm, Inc. $8,435 Wingfoot Commercial Tires $7,339 American International Cos. $6,782 Transamerican Tire $6,534 Newton, Owen, Boyd & Smoke $6,520 MHC Carrier/Transicod $6,071 Mileage Masters $5,778 Roberts Brothers Tire Service $5,372 Accounts Receivable State of New Mexico Fuel Tax - Second Qtr $3,855 Taxation & Revenue Motor Due 7/30/2007 Express Premium Finance Co. $3,099 TD BANK: Confirms Underwriting $3.3 Bil. Facility for BCE Buyers ---------------------------------------------------------------- TD Bank Financial Group confirmed that it has underwritten $3.3 billion of a $34.3 billion credit facility and provided a $500 million equity bridge facility to a group of institutional investors led by Ontario Teachers' Pension Plan Board in support of their bid to acquire BCE Inc. While these commitments are large, they were entered into following the Bank's normal credit processes and are within the risk tolerances provided for in the Bank's risk management framework. In the ordinary course, the Bank would expect to syndicate these commitments among other financial institutions and investors. About Ontario Teachers' Pension Plan Headquartered in Toronto, Ontario, Teachers' Private Capital -- http://www.otpp.com/-- is North America's private investors, providing equity and mezzanine debt capital for large and mid- sized companies, venture capital for developing industries, and financing for a growing portfolio of infrastructure and timberland assets worldwide. It is an independent corporation responsible for investing the fund and administering the pensions of Ontario's 271,000 active and retired teachers. About BCE Inc. Headquartered in Montreal, Quebec, BCE Inc. (TSX/NYSE: BCE) -- http://www.bce.ca/-- is a communications company, providing comprehensive and innovative suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services. Other BCE holdings include Telesat Canada and an interest in CTVglobemedia. About TD Bank The Toronto-Dominion Bank (TSE; NYSE; Tokyo Stock Exchange: TD) - http://www.td.com/-- and its subsidiaries are collectively known as TD Bank Financial Group. TD Bank Financial Group serves more than 14 million customers in four key businesses operating in a number of locations in key financial centres around the globe: Canadian Personal and Commercial Banking, including TD Canada Trust; Wealth Management, including TD Waterhouse and an investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD Banknorth; and Wholesale Banking, including TD Securities. TD Bank Financial Group also has more than 4.5 million on-line customers. The Bank had $397 billion in assets as of April 30, 2007. About TD Banknorth Inc. Headquartered in Portland, Maine, TD Banknorth Inc. -- http://www.TDBanknorth.com/-- is a banking and financial services company and an indirect wholly owned subsidiary of TD Bank headquartered in Toronto, Canada. TD Banknorth's banking subsidiary, TD Banknorth N.A., operates in Connecticut, Maine, Massachusetts, New Hampshire New Jersey, New York, Pennsylvania and Vermont. TD Banknorth and TD Banknorth N.A. also operate subsidiaries and divisions in insurance, wealth management, merchant services, mortgage banking, government banking, private label credit cards, insurance premium financing and other financial services and offers investment products in association with PrimeVest Financial Services Inc. * * * As reported in the Troubled Company Reporter on April 24, 2007, Fitch Ratings affirmed TD Banknorth Inc.'s individual rating at 'B'. TEREX CORP: Stockholders OK Issuance of Additional Shares of Stock ------------------------------------------------------------------ Terex Corporation stockholders have approved an amendment to the company's Certificate of Incorporation, increasing the number of shares of common stock that the company is authorized to issue by 150,000,000. The authorization amendment was approved at a Special Meeting of Stockholders held at the company's headquarters. The company now has 300,000,000 authorized shares of common stock. "T[he] stockholder approval provides Terex with the flexibility we may need going forward in connection with possible future stock splits, financing transactions, acquisitions of other companies or business properties, employee benefit plans and other corporate purposes," said Ronald M. DeFeo, chairman and chief executive officer. Headquartered in Westport, Connecticut, Terex Corporation (NYSE:TEX) - http://www.terex.com/-- manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, surface mining, shipping, transportation, refining, and utility industries. Terex offers a complete line of financial products and services to assist in the acquisition of Terex equipment through Terex Financial Services. The company operates in five business segments: Aerial Work Platforms, Construction, Cranes, Materials Processing & Mining, and Roadbuilding, Utility Products and Other. * * * Moody's Investor Services rated Terex Corporation's long term corporate family rating and probability of default rating a Ba3 on September 2006. The outlook is stable. TCGC LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: TCGC, LLC dba Thornberry Creek Golf Club P.O. Box 12721 Green Bay, WI 54307-2721 Bankruptcy Case No.: 07-25404 Type of Business: The Debtor operates a golf course and country club in Northeastern Wisconsin. See http://www.thornberrycreekcc.net/ Chapter 11 Petition Date: July 16, 2007 Court: Eastern District of Wisconsin (Milwaukee) Judge: Susan V. Kelley Debtor's Counsel: Paul G. Swanson, Esq. Steinhilber, Swanson, Mares, Marone & McDermott 107 Church Avenue P.O. Box 617 Oshkosh, WI 54903-0617 Tel: (920) 426-0456 Fax: (920) 426-5530 Total Assets: $17,792,813 Total Debts: $16,879,672 Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service Notice Only $1,014,219 1920 Libal Street MS 5224 GRB Green Bay, WI 54301 Reinhart Food Service Goods & Services $77,024 1600 East Richmond Street P.O. Box 556 Shawano, WI 54166-0556 Wisconsin Public Service Goods & Services $69,177 P.O. Box 19003 Green Bay, WI 54307-9003 Godfrey & Kahn SC Legal Services $67,220 F. Paul Jensen Money Judgment $55,773 Hockers Brick and Goods & Services $43,775 Tile Co., Inc. S&K Accounting & Tax Service Goods & Services $33,418 LESCO Goods & Services $17,550 MCC, Inc. Goods & Services $17,479 Dierks Waukesha Goods & Services $10,192 Pepsi-Cola of NEW, Inc. Goods & Services $10,134 Triangle Distributing Goods & Services $7,133 Company, Inc. Pasture to Plate Goods & Services $6,744 Schuh Construction, Inc. Goods & Services $6,615 Cumulus Broadcasting Goods & Services $6,600 Badger Liquor Co., Inc. Goods & Services $5,979 Angela Kane and Bennett Notz Function Deposit $5,500 Dean Distributing Goods & Services $5,545 Reinders, Inc. Goods & Services $5,528 Danielle Mason and Function Deposit $5,500 Justin Riebe TRIAD HOSPITALS: Fitch Lowers Issuer Default Rating to B from BB- ----------------------------------------------------------------- Fitch Ratings has downgraded Triad Hospitals, Inc.'s Issuer Default Rating to 'B' from 'BB-', with a Stable Outlook, and removed it from Rating Watch Negative, where it was originally placed on Feb. 5, 2007. In addition, Fitch simultaneously withdraws the IDR rating. Fitch also withdraws these ratings: -- Secured bank facility 'BB+', as it will be replaced with a new facility of the combined firm; -- Senior unsecured notes, as they will be redeemed; -- Senior subordinated notes, as they will be redeemed. These actions were taken as a result of the nearly completed acquisition of Triad by Community Health Systems, Inc. Triad's obligations will be terminated in conjunction with the acquisition. Triad is not expected to issue its own debt in the future. UNED ASSOCIATES: Judge Glenn Confirms Ch. 11 Plan of Liquidation ---------------------------------------------------------------- The Honorable Martin Glenn of U.S. Bankruptcy Court for the Southern District of New York confirmed Uned Associates LLC's Chapter 11 Plan of Liquidation. Treatment of Claims Under the Plan, Administrative and Priority Claims will be paid in full. Secured Mortgage Claim of M&T Bank has been paid under the sale order, subject to the Debtor's reservation to contest interest at the post maturity default rate and certain aspect of the Bank's requested attorney's fees. Unsecured General Claims will be paid in full with appropriate interest. The Debtor's remaining prepetition debt is comprised of unsecured loan owed to M&T Bank in the principal sum of $7,433,817, plus claims of private investors, and various prepetition professionals and insiders. Holders of Equity Interests will retain their interest and receive all remaining surplus from the Debtor's available cash. Headquartered in New York, Uned Associates LLC owns real property at 211 East 51st Street in New York. The Company filed for Chapter 11 protection on Feb. 20, 2007 (Bankr. S.D.N.Y. Case No.: 07-10412). Kevin J. Nash, Esq., and J. Ted Donovan, Esq., at Finkel Goldstein Rosenbloom Nash, LLP, represent the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtors filed for bankruptcy, it listed total assets of $40,079,435 and total debts of $22,456,923. UNICO INC: May 31 Balance Sheet Upside-down by $2.7 Million ----------------------------------------------------------- Unico Inc.'s consolidated balance sheet at May 31, 2007, showed $4.8 million in total assets and $7.5 million in total liabilities, resulting in a $2.7 million total stockholders' deficit. The company's consolidated balance sheet at May 31, 2007, also showed strained liquidity with $1.0 million in total current assets available to pay $7.5 million in total current liabilities. The company reported a net loss of $5.3 million for the first quarter ended May 31, 2007, compared with a net loss of $6.7 million for the same period ended May 31, 2006. The company reported zero revenues in both periods. The decrease in net loss is mainly due to a $1.1 million decrease in loss on settlement of debt and a $323,777 decrease in derivative loss on debentures. Full-text copies of the company's consolidated financial statements for the quarter ended May 31, 2007, are available for free at http://researcharchives.com/t/s?219c Going Concern Doubt As reported in the Troubled Company Reporter on June 15, 2007, HJ Associates & Consultants LLP, in Salt Lake City, expressed substantial doubt about Unico Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Feb. 28, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and stockholders' deficit. About Unico Inc. Based in San Diego, Calif., Unico Inc. (OTC BB: UCOI.OB) -- http://www.unicomining.com/-- explores, develops, and produces precious metals, primarily gold, silver, lead, zinc, and copper concentrates. Its mining properties include Deer Trail Mine, Bromide Basin Mine, and Silver Bell Mine. The company, formerly known as Red Rock Mining Co. Incorporated., was founded in 1966 and changed its name to Industries International Incorporated. Subsequently, the company changed its name to I.I. Incorporated and to Unico Incorporated in 1979. UNITED REFINING: Earns $32.4 Million in Third Qtr. Ended May 31 --------------------------------------------------------------- United Refining Company reported net income for the three months ended May 31, 2007, and 2006 was $32.4 million and $42.3 million respectively. This was a decrease of $9.9 million from the prior year quarter. Net income for the nine months ended May 31, 2007 and 2006 was $28.5 million and $45.8 million respectively. This was a decrease of $17.3 million from the prior nine month period. Net sales for the three months ended May 31, 2007, and 2006 were $587.3 million and $613 million, respectively. This was a decrease of $25.7 million from the prior year quarter. Net sales for the nine months ended May 31, 2007, and 2006 were $1.6 billion and $1.7 billion, respectively, which was a decrease of $28.7 million from the prior year period. Operating income for the three months ended May 31, 2007, and 2006 were $61.4 million and $79.1 million, respectively. This was a decrease of $17.7 million from the prior year quarter. Operating income for the nine months ended May 31, 2007, and 2006 were $66.8 million and $96.3 million, respectively. This was a decrease of $29.5 million from the prior year period. During the fiscal quarter, the company successfully completed its refinery maintenance turnaround of the crude unit which is regularly scheduled about every 48 months. In addition to normal maintenance work, the company upgraded the crude unit and related units to allow them to meet the 30 ppm low sulfur gasoline requirement of the federal Clean Air Act which is effective Jan. 1, 2008. The company now has the ability to process 70,000 barrels per day "bpd" of crude instead of the previous 65,000 bpd capacity. The upgrade also allows the company to run up to 80% of its crude slate as heavy, sour crude. The refinery turnaround was for a 31 day period from March 18 to April 17. Due to the turnaround, crude throughput decreased 17,400 bpd to 44,400 bpd from 61,800 bpd for the three months ended May 31, 2007, and 2006, respectively. Cumulatively, crude throughput decreased 5,800 bpd to 59,300 bpd from 65,100 bpd for the nine months ended May 31, 2007, and 2006, respectively. This reduced crude throughput impacted refined product production and consequently affected wholesale sales volumes, operating income and net income for both the three months and nine months ended May 31, 2007. As of May 31, 2007, the company posted total assets of $653.3 million, total liabilities of $542 million, and total stockholders' equity of $111.3 million. Cash, cash equivalents and working capital at May 31, 2007, were $164.7 million and $277.2 million, respectively. Debt at May 31, 2007, totaled $359.4 million. A full-text copy of the company's third quarter report is available for free at http://ResearchArchives.com/t/s?219d About United Refining United Refining Company -- http://www.urc.com/-- is an independent refiner and marketer of petroleum products. The company fuel cars, trucks, airplanes and farm and construction equipment, as well as the homes and industries. The company's market includes Pennsylvania and portions of New York and Ohio. * * * As reported in the Troubled Company Reporter on May 3, 2007, Moody's assigned a B3 rating to United Refining Company's proposed $100 million senior unsecured notes offering. Simultaneously, Moody's affirmed the B3 corporate family rating, the B3 Probability of Default rating, and upgraded the ratings on the existing notes to B3 (LGD 4, 58%) from Caa1 (LGD 4, 61%). At the same time, Standard & Poor's Ratings Services raised its corporate credit rating and senior unsecured ratings on petroleum refiner and marketer United Refining Co. to 'B' from 'B-', reflecting United's improved liquidity and financial strength, supported by the solid near-term outlook for refining margins. Also, Standard & Poor's assigned its 'B' senior unsecured rating to the proposed $100 million add-on to United's existing senior notes due 2012. The outlook is stable. VALCOM INC: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Valcom Inc. 2525 North Naomi Street Burbank, CA 91504 Bankruptcy Case No.: 07-15984 Type of Business: The Debtor leases sound and production stages and produces film and TV programs. See http://www.valcom.com/ Chapter 11 Petition Date: July 16, 2007 Court: Central District of California (Los Angeles) Judge: Ernest M. Robles Debtor's Counsel: Joseph L. Pittera, Esq. 2214 Torrance Boulevard, Suite 101 Torrance, CA 90501 Tel: (310) 787-7040 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ ICAG, Inc. Loan to Company $434,000 c/o Richard Shintaku 32 Fox Trace Court Henderson, NV 89074 Vince & Teresa Vellardita Loan to Company $341,729 24612 Brighton Drive Unit B Valencia, CA 91355 John M. Fife Loan $144,673 303 West Wacker Drive Suite 311 Chicago, IL 60601 Ira Gains Loan to Company $100,000 Bonnie Nelson Legal Settlement $80,000 Jeff Kutash Productions Judgment $60,000 Certified Fire $42,950 Protection, Inc. Rexford Industrial Realty $38,461 & Management RCH Film Finance, LLC $12,500 Burbank Water & Power Gas Bill $12,074 Frank O'Donnell Loan $10,000 Law Offices of Paul Legal Fees $9,346 Beechen, Inc. Media Distributors $7,779 Digital Cut Post, Inc. $7,620 JR Lighting, Inc. Lighting $6,182 Magellan Financial Media $5,000 Dave Kingsbury Contract Labor $3,184 AT & T Payment Center Telephone Bill $3,144 Certified Service $2,350 EDGAR Filings, Ltd. $2,295 VENOCO INC: Underwriters Purchase Additional 465,000 Shares ----------------------------------------------------------- Venoco Inc. said that the underwriters of its recent public common stock offering have purchased an additional 465,000 shares of the company's common stock pursuant to their over-allotment option. The proceeds to Venoco of the over-allotment option exercise were About $8.2 million, net of underwriting discounts, commissions and estimated costs associated with the transaction. Including shares sold pursuant to the over-allotment option exercise, Venoco sold 6,565,000 shares of common stock in the offering at a price to the public of $18.50 per share. Venoco intends to use the net proceeds from the offering to reduce outstanding indebtedness under its revolving credit facility and to fund capital expenditures. Credit Suisse Securities (USA) LLC and Lehman Brothers Inc. acted as joint book-running managers for the offering. The offering was made by means of a prospectus and a related prospectus supplement, copies of which may be obtained from the offices of: Credit Suisse Securities (USA) LLC Prospectus Department One Madison Avenue New York, NY 10010 Telephone: 1-800-221-1037 or Lehman Brothers c/o Broadridge Prospectus Fulfillment 1155 Long Island Avenue Edgewood, NY 11717 Fax: (631) 254-7140 http://broadridge.com/ An electronic copy of the prospectus will be available on the website of the Securities and Exchange Commission at http://www.sec.gov About Venoco Inc. Headquartered in Denver, Colorado, Venoco Inc. (NYSE: VQ) -- http://www.venocoinc.com/--is an independent energy company primarily engaged in the acquisition, exploitation and development of oil and natural gas properties in California and Texas. It has regional headquarters in Carpinteria, California and in Houston, Texas. Venoco operates three offshore platforms in the Santa Barbara Channel, has non-operating interests in three other platforms, and also operates two onshore properties in Southern California, approximately 250 natural gas wells in Northern California and more than 100 wells in Texas. * * * As reported in the Troubled Company Reporter on April 25, 2007, Moody's Investors Service assigned a Caa1, LGD 4 (61%) rating to Venoco, Inc.'s proposed $500 million second lien term loan facility. At the same time, Moody's affirmed Venoco's B3 corporate family rating, B3 probability-of-default rating, Caa1, LGD 4 (61%, changed from 64%) senior note rating, and SGL-3 speculative grade liquidity rating. The rating outlook remains negative. At the same time, Standard & Poor's Ratings Services raised the corporate credit rating on independent exploration and production company Venoco Inc. to 'B' from 'B-'. In addition, a 'B-' issue rating and '3' recovery rating (indicating the expectation of meaningful (50%-80%) recovery of principal in the event of a payment default) were assigned to Venoco's proposed $500 million second-lien term loan facility. Venoco's existing $150 million senior notes were affirmed at 'B-' and assigned a '3' recovery rating. WESTAR ENERGY: Completes Sale of 3.7 Mil. Shares for $100 Million ----------------------------------------------------------------- Westar Energy Inc. completed the sale of 3,701,568 shares of the company's common stock for $100 million, before placement fees of 1%. Utilizing a Sales Agency Finance Agreement with BNY Capital Markets Inc. executed on April 12, 2007, the company sold shares periodically into the market at an average price per share of $27.02. Proceeds from the sales have been used to repay borrowings under the company's revolving credit facility, fund the company's construction program and for general corporate purposes. "We are on the front edge of our largest construction program in 30 years as we make improvements and plant additions necessary to serve our customers. The sale of common stock as a component of funding these investments is consistent with our strategy of targeting a balanced capital structure of about 50 percent equity and 50 percent long-term debt," Mark Ruelle, executive vice president and chief financial officer, said. "We are pleased with the performance of this program, as we believe it provides us cost-effective and timely access to equity capital markets, reducing the amount of equity we will need to raise in the future." About Westar Energy Westar Energy, Inc. (NYSE: WR) -- http://www.westarenergy.com/-- is an electric utility in Kansas, providing electric service to about 669,000 customers in the state. Westar Energy has about 6,100 megawatts of electric generation capacity and operates and coordinates approximately 33,000 miles of electric distribution and transmission lines. * * * As reported in the Troubled Company Reporter on June 14, 2007, Fitch has placed the long term ratings of Westar Energy Inc., and subsidiary Kansas Gas & Electric on Rating Watch Positive. Approximately $2 billion of long-term debt (including off balance sheet obligations) is affected by the rating action. WR and KG&E's long-term ratings are summarized below. WR and KG&E's short-term 'F3' ratings are unaffected by the rating action. WHISTLER LAGOON: Wants Chapter 11 Case Dismissed ------------------------------------------------ Whistler Lagoon LLLC asks the United States Bankruptcy Court for the District of Maryland to dismiss its chapter 11 bankruptcy proceedings. Robert K. McIntosh, Esq., at McIntosh & Schanno, P.A., states that the Debtor's real estate has been sold at a foreclosure sale leaving the Debtor with no further assets since Jan. 29, 2007. The Debtor's request for dismissal, Mr. McIntosh added, is made in good faith and not for the purpose of delay. Headquartered in Ocean City, Maryland, Whistler Lagoon LLC is a real estate developer. The company filed for Chapter 11 protection on Jan. 22, 2007 (Bankr. MD. Case No.: 07-10627). Robert Keith McIntosh, Esq., at McIntosh and Schanno P.A., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has bee appointed to date on this case. When the Debtor filed for bankruptcy, it listed assets at $22,514,000 and debts at $21,054,544. WHOLE FOODS: Board Initiates Inquiry on CEO Online Postings ----------------------------------------------------------- Whole Foods' Chief Executive Officer John Mackey has apologized on Tuesday to shareholders regarding his anonymous postings in Internet message boards, various sources say. As reported in the Troubled Company Reporter on July 17, 2007, the U.S. Securities and Exchange Commission is initiating an informal query on Mr. Mackey's alleged postings. Mr. Mackey, using the name "rahodeb," has been praising the performance of his company that contradicted past public statements. The SEC is reviewing whether Mr. Mackey's posts were misleading. Internal Board Investigation In addition, the Board of Directors of Whole Foods Market Inc. has formed a Special Committee to conduct an independent internal investigation into online financial message board postings related to Whole Foods Market and Wild Oats Markets. The Special Committee has retained of the firm of Munger, Tolles & Olson LLP to advise it during its investigation. The Board will refrain from comment until the internal investigation is completed. Founded in 1980 in Austin, Texas, Whole Foods Market, Inc. (NASDAQ: WFMI) -- http://www.wholefoodsmarket.com/-- is a natural and organic foods supermarket. In fiscal year 2006, the company had sales of $5.6 billion and currently has more than 190 stores in the United States, Canada, and the United Kingdom. * * * As reported in the Troubled Company Reporter on May 1, 2007, Standard & Poor's Ratings Services said that while the ratings on Whole Foods Market Inc., including the 'BBB-' corporate credit rating, currently remain on CreditWatch with negative implications, where they were placed on Feb. 22, 2007, S&P will lower the corporate credit rating to 'BB+' from 'BBB-' upon closure of its acquisition of Wild Oats Inc. At this time, ratings will also be removed from CreditWatch. The outlook will be stable. ZAPPALA FARMS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Zappala Farms LLC 11404 Schuler Road Cato, NY 13033 Bankruptcy Case No.: 07-31842 Type of Business: The Debtor operates farms & ranches. Chapter 11 Petition Date: July 16, 2007 Court: Northern District of New York (Syracuse) Debtor's Counsel: Charles J. Sullivan, Esq. Bond, Schoeneck & King, PLLC One Lincoln Center Syracuse, NY 13202-1355 Tel: (315) 218-8144 Fax: (315) 218-8100 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ UAP Northeast Trade Debt $474,279 7251 West 4th Street Greely, CO 80634 Stokes Seeds, Inc. Trade Debt $238,876 P.O. Box 548 Buffalo, NY 14240-0548 Suburban Propane Trade Debt $106,954 516 Marshall Road Waterloo, NY 13165 Metlife Insurance Payments $75,490 Jerry W. O'Connell Promissory Note $75,000 EFTPS Payroll Tax Transfers SS/Medicare $69,893 Griffith Energy, Inc. Trade Debt $59,001 Cel Packing, Inc. Trade Debt $52,200 Southern Container Corp. Guaranty $47,855 Frazier Melon Company Trade Debt $46,389 Suburban Energy Services Services Provided $45,649 British Airways/Bank One Credit Card Purchases $26,340 Siegers Seed Company Trade Debt $22,632 AT&T Universal Card Credit Card Purchases $21,255 Paura Farms Ltd. Lease Payment Arrears $20,100 Capital One F.S.B. Credit Card Purchases $19,287 Green & Seifter Servicers provided $18,636 Artic Refrigeration Co. Trade Debt $17,254 Kinney's Brokerage, Inc. Trade Debt $13,024 CNH Capital Credit Card Purchases $12,928 * Moody's Upgrades Ratings on 55 Jumbo Prime RMBS ------------------------------------------------- Moody's Investors Service upgraded 171 tranches from 55 jumbo prime residential mortgage backed securitizations. The rating actions follow Moody's review of jumbo prime RMBS deals issued from 2003 through 2005, with pool factors lower than 45% as of July 2007. To date Moody's has not taken any positive performance related rating actions on the 2006 jumbo prime vintage since these transactions have pool factors exceeding 45%. Although the property market weakened in the past year, and refinancing opportunities have lessened, the jumbo RMBS securitization market experienced strong continued performance for a number of reasons, including that: -- Many pools have experienced very low or even no losses to date; and -- Many pools have experienced high prepayment rates to date. In the virtually standard jumbo RMBS shifting-interest structure, prepayment principal is allocated to senior tranches for the first 5 years, which results in increasing senior tranche credit enhancement levels. High prepayment rates can also reduce cumulative projected losses, as loans that might otherwise default in later years are prepaid. Moody's noted that prepayment rates, although high, have begun to slow, specifically in deals issued in 2003 and early 2004. Relatively slower prepayment rates, as well as increasing proportions of interest-only, option ARM and negative amortization loans in more recent adjustable rate vintages, have contributed to a decrease in the volume of upgrades relative to Moody's prior jumbo prime RMBS reviews in 2003, 2004 and 2005. Although current performance remains strong, there may be an increased risk to such pools once the interest-only and option ARM loans begin to amortize, potentially causing payment shock to the borrowers. Moody's will continue to monitor the tail end risk of these transactions as some subordinated tranches receive their share of principal payments, thereby eroding the total protection available to the more senior classes. Moody's will also continue to monitor the behavior of interest-only loans, option ARMs and negative amortization loans. The complete rating actions are: ABN AMRO 2003-4 -- Class B-1, Upgrade from Aa2 to Aaa ABN AMRO 2003-4 -- Class B-2, Upgrade from A2 to Aa3 Banc of America Mortgage 2003-2 Trust -- Class B-3, Upgrade from Aa3 to Aa2 Banc of America Mortgage 2003-2 Trust -- Class B-4, Upgrade from Baa1 to A3 Banc of America Mortgage 2003-J Trust -- Class 1-A-3, Upgrade from Aa1 to Aaa Banc of America Mortgage 2003-J Trust -- Class B-2, Upgrade from A2 to Aa3 Banc of America Mortgage 2003-J Trust -- Class B-3, Upgrade from Baa2 to A3 Banc of America Mortgage 2003-J Trust -- Class B-4, Upgrade from Ba3 to Baa3 Banc of America Mortgage 2003-K Trust -- Class B-1, Upgrade from Aa2 to Aaa Banc of America Mortgage 2003-K Trust -- Class B-2, Upgrade from A2 to Aa3 Banc of America Mortgage 2003-K Trust -- Class B-3, Upgrade from Baa2 to A3 Banc of America Mortgage 2003-K Trust -- Class B-4, Upgrade from Ba2 to Baa2 Banc of America Mortgage 2003-K Trust -- Class B-5, Upgrade from B2 to B1 Bears Stearns 2003-6 -- Class I-B-1, Upgrade from Aa1 to Aaa Bears Stearns 2003-8 -- Class B-1, Upgrade from Aa2 to Aaa Bears Stearns 2003-8 -- Class B-2, Upgrade from A2 to Aa3 Bears Stearns 2003-8 -- Class B-3, Upgrade from Baa2 to Baa1 Bears Stearns 2003-8 -- Class B-4, Upgrade from Ba2 to Ba1 Bears Stearns 2004-1 -- Class II-B-1, Upgrade from Aa2 to Aaa Bears Stearns 2004-1 -- Class II-B-2, Upgrade from A2 to Aa3 Bears Stearns 2004-2 -- Class II-B-1, Upgrade from Aa2 to Aaa Bears Stearns 2004-2 -- Class II-B-2, Upgrade from A2 to Aa2 Bears Stearns 2004-2 -- Class II-B-3, Upgrade from Baa2 to A2 Chase Mortgage Finance Trust 2003-S15 -- Class M, Upgrade from Aa2 to Aaa Chase Mortgage Finance Trust 2003-S15 -- Class B-1, Upgrade from A2 to Aa2 Chase Mortgage Finance Trust 2003-S15 -- Class B-2, Upgrade from Baa2 to A2 Chase Mortgage Finance Trust 2003-S15 -- Class B-3, Upgrade from Ba2 to Baa2 Chevy Chase Funding 2003-3 -- Class B-1, Upgrade from Aa2 to Aa1 Chevy Chase Funding 2003-3 -- Class B-2, Upgrade from A2 to A1 Chevy Chase Funding 2003-3 -- Class B-3, Upgrade from Baa2 to Baa1 Chevy Chase Funding 2004-1 -- Class B-2, Upgrade from Aa2 to Aaa Chevy Chase Funding 2004-1 -- Class B-3, Upgrade from A2 to Aa2 Chevy Chase Funding 2004-1 -- Class B-4, Upgrade from Baa2 to A3 Chevy Chase Funding 2004-1 -- Class B-5, Upgrade from Ba3 to Ba1 Chevy Chase Funding 2004-2 -- Class B-1, Upgrade from Aa2 to Aaa Chevy Chase Funding 2004-2 Class B-2, Upgrade from A2 to Aa2 Chevy Chase Funding 2004-2 Class B-3, Upgrade from Baa2 to A2 Chevy Chase Funding 2004-2 Class B-4, Upgrade from Ba2 to Baa2 Chevy Chase Funding 2004-2 -- Class B-5, Upgrade from B2 to Ba2 Chevy Chase Funding 2004-3 -- Class B-1, Upgrade from Aa2 to Aa1 Chevy Chase Funding 2004-3 -- Class B-2, Upgrade from A2 to A1 Chevy Chase Funding 2004-3 -- Class B-3, Upgrade from Baa2 to A2 Chevy Chase Funding 2004-3 -- Class B-4, Upgrade from Ba2 to Ba1 Chevy Chase Funding 2004-3 -- Class B-5, Upgrade from B2 to B1 Chevy Chase Funding 2004-A -- Class B-1, Upgrade from Aa2 to Aaa Chevy Chase Funding 2004-A -- Class B-2, Upgrade from A2 to Aa2 Chevy Chase Funding 2004-A -- Class B-3, Upgrade from Baa2 to A2 Chevy Chase Funding 2004-A -- Class B-4, Upgrade from Ba2 to Baa2 Chevy Chase Funding 2004-A -- Class B-5, Upgrade from B2 to Ba2 Chevy Chase Funding 2004-B -- Class B-1, Upgrade from Aa2 to Aaa Chevy Chase Funding 2004-B -- Class B-2, Upgrade from A2 to Aa2 Chevy Chase Funding 2004-B -- Class B-3, Upgrade from Baa2 to A2 Chevy Chase Funding 2004-B -- Class B-4, Upgrade from Ba2 to Baa2 Chevy Chase Funding 2004-B -- Class B-5, Upgrade from B2 to Ba2 Chevy Chase Funding 2005-2 -- Class B-3, Upgrade from Baa2 to A3 Chevy Chase Funding 2005-A -- Class B-1, Upgrade from Aa2 to Aaa Chevy Chase Funding 2005-A -- Class B-1I, Upgrade from Aa2 to Aaa Chevy Chase Funding 2005-A -- Class B-1NA, Upgrade from Aa2 to Aaa Chevy Chase Funding 2005-A -- Class B-2, Upgrade from A2 to Aa2 Chevy Chase Funding 2005-A -- Class B-2I, Upgrade from A2 to Aa2 Chevy Chase Funding 2005-A -- Class B-2NA, Upgrade from A2 to Aa2 Chevy Chase Funding 2005-A -- Class B-3, Upgrade from Baa2 to A2 Chevy Chase Funding 2005-A -- Class B-4, Upgrade from Ba2 to Baa2 Chevy Chase Funding 2005-A -- Class B-5, Upgrade from B2 to Ba2 CHL Mortgage 2003-60 -- Class B-1, Upgrade from Aa2 to Aa1 CHL Mortgage 2004-1 -- Class A-4, Upgrade from Aa1 to Aaa CHL Mortgage 2004-1 -- Class A-5, Upgrade from Aa1 to Aaa CHL Mortgage 2004-12 -- Class 16-A-2, Upgrade from Aa1 to Aaa CHL Mortgage 2004-12 -- Class II-B-2, Upgrade from Baa2 to Baa1 CHL Mortgage 2004-19 -- Class A-15, Upgrade from Aa1 to Aaa CHL Mortgage 2004-3 -- Class A-25, Upgrade from Aa1 to Aaa CHL Mortgage 2004-7 -- Class II-B-2, Upgrade from Baa2 to Baa1 CHL Mortgage 2004-7 -- Class II-B-4, Upgrade from B2 to Ba3 Citicorp Mtg Sec Inc 2003-2 -- Class B-2, Upgrade from Aa2 to Aaa Citicorp Mtg Sec Inc 2003-2 -- Class B-3, Upgrade from A2 to Aa2 CWMBS 2004-HYB2 -- Class M Upgrade from Aa2 to Aaa CWMBS 2004-HYB2 -- Class B-1, Upgrade from A2 to Aa2 CWMBS 2004-HYB2 -- Class B-2, Upgrade from Baa2 to A2 First Horizon 2004-FL1 -- Class B-2, Upgrade from Aa2 to Aa1 First Horizon 2004-FL1 -- Class B-4, Upgrade from Baa2 to A3 First Horizon 2004-FL1 -- Class B-5, Upgrade from Ba2 to Ba1 GMACM 2003-AR1 -- Class M-1, Upgrade from Aa2 to Aaa GMACM 2003-AR1 -- Class M-2, Upgrade from A2 to A1 GSR Mortgage 2004-12 -- Class 1B2, Upgrade from A2 to A1 GSR Mortgage 2004-12 -- Class 1B3, Upgrade from Baa2 to Baa1 GSR Mortgage 2004-5 -- Class 1A2, Upgrade from Aa1 to Aaa MASTR Asset Securitization Trust 2003-4 -- Class 6-B-3, Upgrade from A3 to A2 Merrill 2003-B -- Class B-4, Upgrade from Baa2 to Baa1 Merrill 2003-B -- Class B-5, Upgrade from Ba3 to Ba1 Merrill Lynch Mortgage Investors 2003-F -- Class B-1, Upgrade from Aa1 to Aaa Merrill Lynch Mortgage Investors 2003-F -- Class B-5, Upgrade from B2 to B1 Merrill Lynch Mortgage Investors 2003-G -- Class B-4, Upgrade from Baa2 to Baa1 Merrill Lynch Mortgage Investors 2003-G -- Class B-5, Upgrade from Ba3 to Ba2 Merrill Lynch Mortgage Investors 2003-A6 -- Class M-1, Upgrade from Aa2 to Aaa Merrill Lynch Mortgage Investors 2003-A6 -- Class M-2, Upgrade from A2 to Aa3 Merrill Lynch Mortgage Investors 2003-A6 -- Class M-3, Upgrade from Baa2 to Baa1 Merrill Lynch Mortgage Investors 2003-A6 -- Class B-1, Upgrade from Ba2 to Baa3 Merrill Lynch Mortgage Investors 2003-A6 -- Class B-2, Upgrade from B2 to B1 Merrill Lynch Mortgage Investors 2004-B -- Class B-4, Upgrade from Baa2 to Baa1 Merrill Lynch Mortgage Investors 2004-B -- Class B-5, Upgrade from Ba3 to Ba2 Merrill Lynch Mortgage Investors 2004-D -- Class B-1, Upgrade from Aa2 to Aaa Merrill Lynch Mortgage Investors 2004-D -- Class B-2, Upgrade from A2 to Aa3 Merrill Lynch Mortgage Investors 2004-D -- Class B-3, Upgrade from Baa2 to A2 Merrill Lynch Mortgage Investors 2004-D -- Class B-4, Upgrade from Ba2 to Baa2 Merrill Lynch Mortgage Investors 2004-D -- Class B-5, Upgrade from B2 to B1 Merrill Lynch Mortgage Investors 2004-E -- Class B-1, Upgrade from Aa2 to Aa1 Merrill Lynch Mortgage Investors 2004-E -- Class B-2, Upgrade from A2 to A1 Merrill Lynch Mortgage Investors 2004-E -- Class B-3, Upgrade from Baa2 to Baa1 Merrill Lynch Mortgage Investors 2004-E -- Class B-4, Upgrade from Ba2 to Baa3 Merrill Lynch Mortgage Investors 2004-F -- Class B-1, Upgrade from Aa2 to Aaa Merrill Lynch Mortgage Investors 2004-F -- Class B-2, Upgrade from A2 to Aa1 Merrill Lynch Mortgage Investors 2004-F -- Class B-3, Upgrade from Baa2 to A1 Merrill Lynch Mortgage Investors 2004-F -- Class B-4, Upgrade from Ba2 to A3 Merrill Lynch Mortgage Investors 2004-F -- Class B-5, Upgrade from B2 to Ba1 Merrill Lynch Mortgage Investors 2005-A -- Class B-1, Upgrade from Aa2 to Aa1 Merrill Lynch Mortgage Investors 2005-A -- Class B-2, Upgrade from A2 to Aa3 Merrill Lynch Mortgage Investors 2005-A -- Class B-3, Upgrade from Baa1 to A2 Merrill Lynch Mortgage Investors 2005-A -- Class B-4, Upgrade from Ba2 to Baa3 Morgan 2003-HYB1 -- Class B-1, Upgrade from Aa1 to Aaa Morgan 2003-HYB1 -- Class B-2, Upgrade from A1 to Aa3 Morgan 2003-HYB1 -- Class B-3, Upgrade from Baa2 to Baa1 Mortgage Pass-Through MLMI Series 2003-A5 -- Class M-1, Upgrade from Aa2 to Aaa Mortgage Pass-Through MLMI Series 2003-A5 -- Class M-2, Upgrade from A2 to Aa2 Mortgage Pass-Through MLMI Series 2003-A5 -- Class M-3, Upgrade from Baa2 to A3 Mortgage Pass-Through MLMI Series 2003-A5 -- Class B-1, Upgrade from Ba2 to Baa2 WaMu Mortgage 2003-AR3 -- Class B-4, Upgrade from Baa1 to A3 WaMu Mortgage 2003-AR3 -- Class B-5, Upgrade from Ba2 to Baa3 WaMu Mortgage 2003-AR5 -- Class B-5, Upgrade from Ba3 to Ba2 WaMu Mortgage 2003-AR6 -- Class B-4, Upgrade from Baa2 to Baa1 WaMu Mortgage 2003-AR8 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2003-AR8 -- Class B-2, Upgrade from A2 to Aa3 WaMu Mortgage 2003-AR8 -- Class B-3, Upgrade from Baa2 to Baa1 WaMu Mortgage 2003-AR8 -- Class B-4, Upgrade from Ba2 to Baa3 WaMu Mortgage 2003-AR12 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2003-AR12 -- Class B-2, Upgrade from A2 to Aa3 WaMu Mortgage 2003-AR12 -- Class B-3, Upgrade from Baa2 to A3 WaMu Mortgage 2003-AR12 -- Class B-4, Upgrade from Ba2 to Baa3 WaMu Mortgage 2003-AR12 -- Class B-5, Upgrade from B2 to B1 WaMu Mortgage 2004-AR1 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR1 -- Class B-2, Upgrade from A2 to Aa3 WaMu Mortgage 2004-AR1 -- Class B-3, Upgrade from Baa2 to A3 WaMu Mortgage 2004-AR1 -- Class B-4, Upgrade from Ba2 to Baa3 WaMu Mortgage 2004-AR1 --- Class B-5, Upgrade from B2 to B1 WaMu Mortgage 2004-AR2 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR2 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR2 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR2 -- Class B-4, Upgrade from Ba2 to Baa2 WaMu Mortgage 2004-AR6 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR6 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR6 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR6 -- Class B-4, Upgrade from Ba2 to A3 WaMu Mortgage 2004-AR8 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR8 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR8 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR8 -- Class B-4, Upgrade from Ba2 to Baa2 WaMu Mortgage 2004-AR10 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR10 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR10 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR10 -- Class B-4, Upgrade from Ba2 to Baa2 WaMu Mortgage 2004-AR12 -- Class B-1, Upgrade from Aa2 to Aa1 WaMu Mortgage 2004-AR12 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR12 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR12 -- Class B-4, Upgrade from Ba2 to Baa2 WaMu Mortgage 2004-AR13 -- Class B-1, Upgrade from Aa2 to Aaa WaMu Mortgage 2004-AR13 -- Class B-2, Upgrade from A2 to Aa2 WaMu Mortgage 2004-AR13 -- Class B-3, Upgrade from Baa2 to A2 WaMu Mortgage 2004-AR13 -- Class B-4, Upgrade from Ba2 to Baa2 Wells Fargo Mortgage 2003-D -- Class B-3, Upgrade from A1 to Aa3 Wells Fargo Mortgage 2004-I -- Class B-1, Upgrade from Aa2 to Aaa Wells Fargo Mortgage 2004-I -- Class B-2, Upgrade from A2 to Aa2 Wells Fargo Mortgage 2004-I -- Class B-3, Upgrade from Baa2 to A2 * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ------------------------------------------------------------- Recent Chapter 11 cases filed with assets and liabilities below $1,000,000: In Re Rebecca Christine Rushing Grelier Bankr. N.D. Ala. Case No. 07-81745 Chapter 11 Petition filed July 11, 2007 See http://bankrupt.com/misc/alnb07-81745.pdf In Re Two Hands, Inc. Bankr. N.D. Ga. Case No. 07-70957 Chapter 11 Petition filed July 11, 2007 See http://bankrupt.com/misc/ganb07-70957.pdf In Re Liebfried Aviation, Inc. Bankr. D. Mass. Case No. 07-42603 Chapter 11 Petition filed July 11, 2007 See http://bankrupt.com/misc/mab07-42603.pdf In Re Gasolinarea Guaraguao, Inc. Bankr. D. P.R. Case No. 07-03896 Chapter 11 Petition filed July 11, 2007 See http://bankrupt.com/misc/prb07-03896.pdf In Re Del Royal Investments, Inc. Bankr. W.D. La. Case No. 07-50813 Chapter 11 Petition filed July 12, 2007 See http://bankrupt.com/misc/lawb07-50813.pdf In Re V.C.V.D., Inc. Bankr. D. Nebr. Case No. 07-41315 Chapter 11 Petition filed July 12, 2007 See http://bankrupt.com/misc/neb07-41315.pdf In Re Greystone Partners, L.L.C. Bankr. S.D. N.Y. Case No. 07-36035 Chapter 11 Petition filed July 12, 2007 See http://bankrupt.com/misc/nysb07-36035.pdf In Re Concorde Production Company, L.L.C. Bankr. W.D. Tex. Case No. 07-51731 Chapter 11 Petition filed July 12, 2007 See http://bankrupt.com/misc/txwb07-51731.pdf In Re Bob Yeager's Texaco, Inc. Bankr. W.D. Pa. Case No. 07-24466 Chapter 11 Petition filed July 13, 2007 See http://bankrupt.com/misc/pawb07-24466.pdf In Re The Noodle Factory, Inc. Bankr. W.D. Pa. Case No. 07-24470 Chapter 11 Petition filed July 13, 2007 See http://bankrupt.com/misc/pawb07-24470.pdf In Re Armor Enterprises, Inc. Bankr. D. P.R. Case No. 07-03934 Chapter 11 Petition filed July 13, 2007 See http://bankrupt.com/misc/prb07-03934.pdf In Re Transalaska Enterprises, L.L.C. Bankr. D. Alaska Case No. 07-00353 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/akb07-00353.pdf In Re Big Bully's BBQ Burgers, L.L.C. Bankr. D. Mass. Case No. 07-14391 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/mab07-14391.pdf In Re Jes Tirs, Inc. Bankr. D. Mass. Case No. 07-42684 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/mab07-42684.pdf In Re Dunmore Equity, L.L.C. Bankr. D. N.H. Case No. 07-11483 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/nhb07-11483.pdf In Re Academy Glass and Tint Co. Bankr. D. N.M. Case No. 07-11695 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/nmb07-11695.pdf In Re Small Business Solutions, L.L.C. Bankr. D. Nev. Case No. 07-14300 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/nvb07-14300.pdf In Re 303 Golf Range, Inc. Bankr. S.D. N.Y. Case No. 07-22655 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/nysb07-22655.pdf In Re River Entertainment Co. Bankr. W.D. Pa. Case No. 07-24515 Chapter 11 Petition filed July 16, 2007 See http://bankrupt.com/misc/pawb07-24515.pdf In Re Hooligans Pub & Oyster Bar, Ltd. Bankr. S.D. Fla. Case No. 07-15540 Chapter 11 Petition filed July 17, 2007 See http://bankrupt.com/misc/flsb07-15540.pdf In Re Ronald Gene Smith Bankr. W.D. La. Case No. 07-80667 Chapter 11 Petition filed July 17, 2007 See http://bankrupt.com/misc/lawb07-80667.pdf In Re Horizon Recovery, Inc. Bankr. W.D. N.C. Case No. 07-10454 Chapter 11 Petition filed July 17, 2007 See http://bankrupt.com/misc/ncwb07-10454.pdf In Re Time Imports Auto Sales, Inc. Bankr. E.D. N.Y. Case No. 07-43781 Chapter 11 Petition filed July 17, 2007 See http://bankrupt.com/misc/nyeb07-43781.pdf ********* 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 ***