/raid1/www/Hosts/bankrupt/TCR_Public/070725.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Wednesday, July 25, 2007, Vol. 11, No. 174
Headlines
4 WALL BUILDERS: Case Summary & 19 Largest Unsecured Creditors
ACUMENT GLOBAL: High Business Risk Cues Moody's B2 Rating
ADVANCED HOMECARE: S&P Assigns Corporate Credit Rating at B
AK STEEL: Ralph S. Michael Elected to Board of Directors
AMERICAN COLOR: Signs Letter of Intent to Merge with Vertis
AMP'D MOBILE: Wants to Sell Substantially All Assets
ASC INC: Court Denies Financing for Operation of Remaining Unit
AXS-ONE INC: Inks Revised Loan Agreement with Silicon Valley Bank
AXS-ONE INC: Receives Non-Compliance Notice from AMEX
BANK OF AMERICA: S&P Affirms Ratings on 106 Certificate Classes
BEAZER HOMES: SEC Issues Formal Order on Company Probe
BUFFALO COAL: Court Approves Graham & Associates as Accountants
CHASE FUNDING: S&P Junks Rating on Series 2001-2 Class IB Certs.
CHASE MORTGAGE: Adequate Credit Support Cues S&P to Lift Ratings
CLARKLIFT OF ORLANDO: Case Summary & 20 Largest Unsec. Creditors
CNH GLOBAL: Earns $228 Million in Second Quarter Ended June 30
COMM 2005-C6: Moody's Affirms Ba3 Rating on Class L Certificates
CREDIT SUISSE: Moody's Affirms Rating on Class O Certs. at B3
CSFB HOME: Moody's Lowers Ratings on 22 Tranches
CT CDO: Fitch Affirms Low-B Ratings on Five Classes
CW MEDIA: High Financial Risk Cues S&P's B Long-Term Rating
DAVID SLICE: Case Summary & 18 Largest Unsecured Creditors
DELPHI CORP: Plans Opening of New Diesel Plant in Romania
DEL PRADO HOLDINGS: Case Summary & 12 Largest Unsecured Creditors
DOVECORP ENT: Obtains $1 Mil. DIP Facility from Argosy Bridge
EAGLE BROADBAND: May 31 Balance Sheet Upside-Down by $5.8 Million
EVRAZ OREGON: High Financial Leverage Cues Moody's B1 Rating
EXPEDIA INC: Lowers Number of Shares Sought in Tender Offer
EXPEDIA INC: S&P Lowers Ratings and Removes Negative CreditWatch
FEDERAL-MOGUL: Earns $4 Million in Second Quarter Ended June 30
FRONTIER DRILLING: Moody's Junks Rating on Proposed $100MM Loan
GATEHOUSE MEDIA: Completes Public Offering of 18.7MM Common Stock
GE COMMERCIAL: Moody's Affirms Low-B Ratings on Six Cert. Classes
GENERAL CABLE: Extends Senior Notes Exchange Offer to July 26
GREENWICH CAPITAL: Moody's Holds Low-B Ratings on 6 Cert. Classes
GUNDLE/SLT: Consent Solicitation for 11% Senior Notes Expires
IMAX CORPORATION: March 31 Balance Sheet Upside-Down by $58.7 Mil.
IMAX CORP: Moody's Confirms Corporate Family Rating at Caa1
INFOUSA(R) INC: Commences Tender Offer for Guideline's Stock
INTERNATIONAL COAL: Moody's Junks Corporate Family Rating
J.CREW GROUP: David House Elected to Board of Directors
JP MORGAN: Moody's Affirms B3 Rating on $3.4 Mil. Class P Certs.
JP MORGAN: Moody's Affirms Rating on $1.3MM Class N Certs. at B3
LAKELAND MILLS: Case Summary & 12 Largest Unsecured Creditors
LEHMAN BROTHERS: Moody's Rates $3.7 Mil. Class B Certs. at Ba1
LENNOX INT'L: Board Declares Quarterly Cash Dividend due Sept. 11
LIFEPOINT HOSPITALS: Net Income Down to $13.4MM in 2nd Qtr. 2007
LORUS THERAPEUTICS: Herbert Abramson Appointed to Board
LOTS WAKO: Case Summary & 19 Largest Unsecured Creditors
MERRILL LYNCH: Moody's Holds B3 Rating on Class L Certificates
MORGAN STANLEY: Fitch Holds Low-B Ratings on 6 Certificate Classes
MOTION PICTURE: Moody's Rates First Lien Credit Facilities at Ba3
MOVIE GALLERY: Executes Forbearance Agreement with Lenders
NATIONSLINK FUNDING: Fitch Holds B+ Rating on Class G Certs.
NEW JERSEY ECONOMIC: Fitch Rates 2007A and 2007B Bonds at BB+
NEW PROVIDENCE: Case Summary & 17 Largest Unsecured Creditors
NYLSTAR INC: Hires Glenn Feldmann as Special Counsel
ORLANDO CITYPLACE: Files for Bankruptcy on Slow Condo Unit Sales
ORLANDO CITYPLACE: Case Summary & 20 Largest Unsecured Creditors
PERRY ELLIS: S&P Puts Preliminary B+ Rating on Sr. Unsec. Debt
PNC MORTGAGE: Moody's Holds Junk Ratings on 2 Certificate Classes
POE FINANCIAL: Exclusive Plan Filing Period Extended to August 14
PROSPECT MEDICAL: Moody's Rates Proposed $115 Million Loan a B2
QUEST MINERALS: March 31 Balance Sheet Upside-down by $3.8 Million
REGENCY ENERGY: Commences Offering of 10 Million Common Units
REGENCY ENERGY: Public Offering Cues Moody's to Review Ratings
ROCHESTER SERVICE: Case Summary & Six Largest Unsecured Creditors
ROUGE INDUSTRIES: Wants Until September 17 to File Chapter 11 Plan
SHANNON FALK: Case Summary & Three Largest Unsecured Creditors
SKYLINE CONCRETE: Case Summary & 20 Largest Unsecured Creditors
SOUTHPARK COMMUNITY: Judge Summerhays Confirms Chapter 11 Plan
SPECTRUM BRANDS: Provides Further Projections for Fiscal 2007
STRUCTURED FINANCE: Fitch Puts Ratings on 26 Classes on Watch
SUN PLASTICS: Voluntary Chapter 11 Case Summary
T REIT INC: Transfers Assets and Liabilities to Liquidating Trust
TARPON INDUSTRIES: AMEX Continues Listing of Securities
TERAYON COMMUNICATIONS: Completes $140 Million Sale to Motorola
TEXAS INDUSTRIES: Moody's Rates Proposed $200MM Facility at Ba3
TWEETER HOME: Court Approves $10 Million Schultze DIP Financing
TWEETER HOME: U.S. Trustee Adds J.L. Audio to Creditors Committee
UNITED RENTALS: Cerberus Deal Prompts Moody's to Review Ratings
UNITED RENTALS: Fitch Retains Negative Watch on Cerberus Deal
US ENERGY: Retains Jefferies & Company as Financial Advisor
VERTIS COMMUNICATIONS: Signs Merger Pact with American Color
WILD WEST: Wants Adams Jones as Special Counsel
ZACHARY CASEY: Case Summary & 16 Largest Unsecured Creditors
* Upcoming Meetings, Conferences and Seminars
*********
4 WALL BUILDERS: Case Summary & 19 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: 4 Wall Builders, L.L.C.
300 South 12th Street
Phoenix, AZ 85034
Bankruptcy Case No.: 07-03487
Type of business: The Debtor is a building contractor.
Chapter 11 Petition Date: July 23, 2007
Court: District of Arizona (Phoenix)
Debtor's Counsel: J. Kent Mackinlay, Esq.
Warnock, Mackinlay & Associates, P.L.L.C.
1019 South Stapley Drive
Mesa, AZ 85204
Tel: (480) 898-9239
Fax: (480) 833-2175
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Asian Bank of Arizona $299,586
668 North 44th Street
Suite 123
Phoenix, AZ 85004
Silver State Bank $145,870
1081 Whitney Ranch Drive
Henderson, NV 89014
Dakota Concrete $82,816
6750 South Britanny Lane
Tempe, AZ 85283
Cal Ply $69,608
K.C.I. Doors $64,348
Great Western Building $58,897
De Lage Landen $58,000
Arizona Business Bank $49,250
Executive Flooring $43,314
B.M.F. Masonary $35,697
Mankel Mechanical, L.L.C. $33,300
United Rentals $24,425
Twin L. Plumbing $23,550
American Garage Door Co. $22,965
Rew Materials $21,293
Right Way Roofing $20,900
Open Works $19,960
Skyline Steel $19,171
84 Lumbar $17,833
ACUMENT GLOBAL: High Business Risk Cues Moody's B2 Rating
---------------------------------------------------------
Moody's Investors Service reassigned a B2 corporate family rating
to Acument Global Technologies, Inc. and a B2 rating to the senior
secured term loan due 2013, the company consenting to provide
Moody's with the sufficient level of financial information to
monitor its ratings.
Acument's B2 corporate family rating primarily reflects the
company's high business risk characterized by significant end-
market and customer concentration. Following the disposal of its
aerospace business, Cherry Aerospace LLC, Acument is predominantly
exposed to the challenging automotive sector, where it has
experienced weak organic growth, can be susceptible to severe
price pressures and face challenges to pass on raw material
(mainly steel) cost inflation. With regards to Acument's customer
concentration, Moody's also notes the material (though declining)
weight of the "Big Three", which have faced fierce competitive
pressures and dealt with sharp cost-cutting programs. The
company's operating challenges are also reflected in the company's
weak margins and modest cash flow generation compared to other
rated diversified manufacturers. More positively, Moody's
recognizes that the company is a global leader in the fragmented
mechanical fasteners market and takes into consideration Acument's
restructuring efforts faced with soft automotive demand over
recent years including closures of manufacturing facilities and
distribution centers in high-wage countries as well as headcount
reductions.
Acument's current leverage -- an estimated pro forma debt/trailing
twelve month EBITDA using Moody's standard adjustments of around
4.5x as of June 30, 2007 - reflects the LBO transaction from
August, 2006 and the subsequent redemption of $194 million senior
notes after the disposal of the Cherry aerospace business. In
Moody's view, adjusted leverage below 5 times adequately positions
the company in its rating category considering Acument's business
and cash flow profile.
The stable outlook reflects Moody's expectation that Acument's
margins will not materially deteriorate, excluding a one-time
negative impact linked to the Cherry disposal, with the support of
on-going cost-cutting initiatives. In addition, the rating agency
expects positive free cash flow on an annual basis.
The rating of the senior secured term loan is based on the overall
probability of default of the company, to which Moody's has
assigned a PDR of B2, and a loss given default of LGD 4 for the
term loan. The B2 rating of the senior secured term loan reflects
its senior position in Acument's capital structure, full
guarantees of its domestic subsidiaries and its US parent, King
Holding US Corporation, a second lien on domestic current assets
(a first lien on domestic assets secures the unrated revolver) and
a first lien on the other US assets. Moody's indicates that the
amount of debt with more junior claim reduced following the
repayment of the $194 million notes in February, 2007.
Ratings assigned:
-- B2 corporate family rating and B2 probability of default
rating
-- B2 $325 million senior secured term loan due 2013 (LGD4,
55%)
Acument, headquartered in Troy, Michigan, is a global provider of
integrated fastening solutions and offers a broad range of
fastening technologies, including fasteners, engineered assemblies
and automation equipment. Acument resulted from the acquisition
of the fastening systems business of Textron Inc. (rated A3) by an
affiliate of Platinum Equity Advisors LLC in August, 2006. Pro
forma revenues (excluding Cherry) for the year ended Dec. 31, 2006
exceeded $1.6 billion.
ADVANCED HOMECARE: S&P Assigns Corporate Credit Rating at B
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Dallas-based home health care provider Advanced
Homecare Holdings Inc. The rating outlook is stable.
At the same time, Standard & Poor's assigned its loan and recovery
ratings to Advanced Homecare's proposed $135 million senior
secured first-lien credit facilities (consisting of a $25 million
revolving credit due in 2013 and a $110 million term loan B due in
2014) and $45 million senior secured second-lien term loan due in
2015. The first-lien facilities are rated 'BB-' with a recovery
rating of '1', indicating the expectation for very high (90% to
100%) recovery in the event of a payment default. The second-lien
loan is rated 'CCC+' with a recovery rating of '6', indicating the
expectation for negligible (0%-10%) recovery in the event of a
payment default. Proceeds from the bank debt will be used to fund
the LBO of Advanced Homecare by Thoma Cressy Bravo and Advanced
Homecare's management.
"The stable outlook reflects Standard & Poor's expectation that
leverage will remain high for the foreseeable future," said
Standard & Poor's credit analyst Rivka Gertzulin. S&P could
change the outlook to positive if the company meaningfully reduces
leverage and establishes a track record of successful growth that
allows it to build its financial flexibility.
AK STEEL: Ralph S. Michael Elected to Board of Directors
--------------------------------------------------------
AK Steel Corp. has elected Ralph S. (Mike) Michael III to its
board of directors. Mr. Michael is the president and chief
operating officer of the Ohio Casualty Insurance Company,
Fairfield, Ohio.
"Mike Michael's strong business, banking and metals background
will be an asset to AK Steel's board and its stockholders," James
L. Wainscott, chairman, president and CEO of AK Steel, said. "We
welcome his expertise and wisdom to AK Steel."
Prior to becoming president and COO of the Ohio Casualty Insurance
Company, Mr. Michael was executive vice president and manager of
Private Asset Management for U.S. Bank, N.A. He also held
numerous executive and management positions with PNC Financial
Services Group, Pittsburgh, Pennsylvania, before joining U.S.
Bank.
Mr. Michael holds a Bachelor of Science degree in economics from
Stanford University, and a Master of Business Administration
degree from the University of California at Los Angeles Graduate
School of Management. He currently serves as a board member of
Key Energy Services Inc., The Cincinnati Bengals Inc., Xavier (OH)
University, Friedman Billings Ramsey Group Inc. and Cincinnati
Center City Development Corporation.
About AK Steel
Headquartered in Middletown, Ohio, AK Steel Corp. (NYSE: AKS) --
http://www.aksteel.com/-- produces flat-rolled carbon, stainless
and electrical steels, as well as tubular steel products for the
automotive, appliance, construction and manufacturing markets.
* * *
Moody's Investor Services assigned B1 rating on AK Steel Corp.'s
long term corporate family rating and probability of default on
Sept. 2006. The outlook is stable.
Standard and Poor's rated the company's long term foreign and
local issuer credit B+ on July 2003. The outlook is stable.
AMERICAN COLOR: Signs Letter of Intent to Merge with Vertis
-----------------------------------------------------------
American Color Graphics and Vertis Communications, formerly Vertis
Inc., signed a letter of intent to merge the operations of the
company into Vertis' nationwide marketing and printing services
platform.
The combined company will be led by Mike DuBose, chairman and
chief executive officer of Vertis.
Steve Dyott, the company's current CEO, is expected to remain with
the combined company to help with the transition and integration
of the two companies.
As a result of the merger, the owners of ACG will receive 10% of
the combined company's common equity and 8% of the mezzanine
subordinated notes of Vertis Holdings. At the closure of the
merger, ACG will become a wholly-owned subsidiary of Vertis.
Mr. DuBose said, "This acquisition will bring together two
industry leaders and we expect it to be well received by our
clients and stakeholders. Our commitment to our customers'
success will be further enhanced in the combined organization as a
result of the increased talent, financial strength, technology and
other resources of a larger Vertis. This combination will allow
us to better address today's advertising insert and premedia
services marketplace as well as further complement Vertis' Direct
Marketing, Media Services, Technology and Creative Service
businesses."
He continued, "Vertis will now have a significantly larger
footprint to better serve existing and future clients. We look
forward to working with the ACG management team to finalize
integration plans as well as realize improvements in cost
efficiencies and further enhancements in product breadth,
innovation and customer service."
The two privately held companies have complementary service
offerings and clients, promoting the combined organization's
expertise in advertising inserts and premedia services. The
merger will integrate ACG's eight production facilities, with
capabilities in commercial offset and flexographic printing, as
well as six premedia service centers into Vertis. Vertis believes
that the combined company will realize significant synergies as
the operations are restructured to increase operational
efficiencies and improve service offerings across the platform and
product lines.
ACG's 2007 revenues were $445 million, while earnings before
interest, taxes, depreciation, and amortization were $38 million
for the twelve months ended March 31, 2007. On a pro forma basis,
the combined entities would have had revenues of $1.9 billion and
adjusted earnings before interest, taxes, depreciation, and
amortization of $197 million for the twelve months ended March 31,
2007, excluding any potential synergies.
The closing of the transaction is subject to the execution of a
mutually acceptable definitive merger agreement, the satisfaction
of customary closing conditions, and the receipt of necessary
approvals. Vertis and ACG expect to sign a definitive merger
agreement by Aug. 13, 2007. The merger will be subject to the
amendment, refinancing, or repayment in full of the parties'
senior secured credit facilities and the successful exchange of
the parties' outstanding notes.
About Vertis Communications
Vertis Communications, fka Vertis Inc., a wholly owned subsidiary
of Vertis Holdings, -- http://www.vertisinc.com/-- is a marketing
partner to a number of clients, including several Fortune 500
companies. The company offers consulting, creative, research,
direct mail, media, technology and production services. It also
provides print advertising, direct marketing solutions, and
similar services to America's retail and consumer services
companies.
About American Color Graphics
Headquartered in Brentwood, Tenn., American Color Graphics, Inc.
-- http://www.americancolor.com/-- is engaged in printing of
advertising inserts and newspaper products in the United States.
The company is a wholly owned subsidiary of ACG Holdings, Inc.
The company operates in two segments: print and premedia services.
Customers for its print services include about 230 national and
regional retailers and approximately 155 newspapers. The premedia
services segment provides its customers with a solution for the
preparation and management of materials for printing, including
the design, creation and capture; manipulation; storage;
transmission, and distribution of images.
At Dec. 31, 2006, the company's balance sheet showed $233,932,000
in total assets and $475,925,000 in total liabilities, resulting
in a stockholders' deficit of $241,993,000.
* * *
As reported in the Troubled Company Reporter on Feb. 23, 2007,
Standard & Poor's Ratings Services lowered its ratings on
Brentwood, Tennessee-based American Color Graphics Inc. The
corporate credit rating was lowered to 'CCC' from 'CCC+'. The
rating outlook is negative.
AMP'D MOBILE: Wants to Sell Substantially All Assets
----------------------------------------------------
Amp'd Mobile Inc. informed the U.S. Bankruptcy Court for the
District of Delaware that its Chapter 11 case has reached a
critical juncture as Kings Road Investment Ltd., the company's
secured lender, has decided not to provide debtor-in-possession
financing, and Verizon Wireless has sought to cease providing the
Debtor telecommunication services pursuant to a certain Wholesale
Agreement.
As a result of these developments, Amp'd Mobile has determined
that it was in the best interest of its estate and creditors to
sell all or substantially all of its assets in a Court-supervised
auction process.
In light of this decision, the Debtor's management and its
advisors have canvassed all potentially interested bidders in an
effort to maximize interest in a potential transaction, Steven M.
Yoder, Esq., at The Bayard Firm, in Wilmington, Delaware, relates.
The Debtor's effort is now focused on implementing a formal
marketing process for the sale of the Assets, according to
Mr. Yoder. The Debtor, with the assistance of its professionals,
has assembled relevant data and documents which are accessible via
a "virtual data room."
A 40-page list of the Amp'd Mobile Assets to be sold is available
for free at http://researcharchives.com/t/s?21be
All the pertinent information related to the proposed sale will be
available to interested parties who enter into confidentiality
agreements with the Debtor. The Debtor also accomodates onsite
visits for interested parties, Mr. Yoder adds.
Accordingly, the Debtor asks the Court to:
(a) authorize and schedule an auction for the sale of all or
substantially all of its assets, free and clear of all
liens, claims, encumbrances and interests;
(b) approve procedures for the submission of higher and
better offers for any or all of the Assets;
(c) authorize it to enter into a "stalking horse" agreement;
(d) authorize the assumption and rejection of certain
executory contracts; and
(e) approve procedures for the rejection of certain leases.
Bidding Procedures
The Debtor asserts that it cannot sustain an extended
postpetition sale process given its funding restraints and the
competitive nature of its industry.
Accordingly, to maximize recoveries for its estate, the Debtor
proposes uniform bidding procedures to govern the sale of its
Assets.
The Bidding Procedures require a potential bidder to, among other
things:
-- submit a written offer via e-mail or facsimile by July 27,
2007;
-- submit evidence that it is financially capable of
consumating the proposed transaction;
-- participate, if determined to be a Qualifying Bidder, in
the Auction;
-- consummate and fund the proposed sale if chosen to be the
Prevailing Bidder;
-- accompany its bid with a good faith deposit of 10% of the
amount of the Bid sent by wire transfer in immediately
available funds or set forth in an irrevocable letter of
credit; and
-- keep its bid open and irrevocable until the closing of the
purchase by the Prevailing Bidder.
Auction
In the event two or more Qualified Bids are received, the Debtor
will conduct an auction on July 30, 2007, at the office of The
Bayard Firm, in Wilmington, Delaware.
Only Qualifying Bidders are entitled to make any subsequent bids
at the Auction. Qualifying Bidders may submit successive bids in
increments of at least $100,000 higher than the Initial Bid.
A full-text copy of the proposed Amp'd Mobile Bidding Procedures
is available for free at http://researcharchives.com/t/s?21bf
Stalking Horse Bid
In consultation with the Official Committee of Unsecured
Creditors and the consent of the Secured Lender, the Debtor seeks
to retain the right to establish a "stalking horse" bidder at any
time prior to the Bid Deadline by executing an asset purchase
agreement with that bidder. Any Stalking Horse Agreement will
not be subject to due diligence or financing contingencies.
The Debtor reserves the right to provide a break-up fee of up to
3% of the guaranteed cash purchase price offered by a Stalking
Horse Bidder, with the Secured Lender's consent, if it ultimately
consummates a sale transaction with a bidder other than the
Stalking Horse Bidder.
Contract Assignment & Rejection
As part of the contemplated transactions, the Debtor seeks the
Court's authority to assume and assign or reject identifiable
executory contracts and unexpired leases.
The Contracts include written and oral contracts, supply, service
and provider contracts, collaborative agreements, permits,
licenses and real and personal property leases, Mr. Yoder
relates. Agreements with approximately 100,000 of the Debtor's
subscribers are included in the Contracts. The cure amount for
the Subscribers Contracts is $0.
A 10-page list of the Contracts with its corresponding cure
amount, excluding the Subscriber Contracts, is available for free
at http://researcharchives.com/t/s?21c0
After the Auction, the Debtor intends to file a notice of the
Assumed Contracts to the parties-in-interest, Mr. Yoder avers.
Any objection relating to the Assumption and Assignment of the
Contracts must:
-- identify the Contract being objected to,
-- identify the grounds for the objection,
-- attach supporting data,
-- specify what the party believes is required to provide
adequate assurance, and
-- be filed with the Court by July 30, 2007.
To the extent a Contract is rejected, the concerned party must
file a damages claim to Epiq Bankruptcy Solutions, LLC, the
Debtor's claims agent, no later than 30 days after the notice of
rejection is served on the counterparties.
If the Subscriber Contracts are not assumed and assigned pursuant
to a Sale, the Debtor seeks authority to terminate service to the
subscribers and to terminate the Subscriber Contracts.
The Debtor also asks the Court to set a hearing on August 1,
2007, to consider the Proposed Sale.
Headquartered in Los Angeles, Calif., Amp'd Mobile Inc. aka
Amp'D Mobile LLC -- http://www.ampd.com/-- is a mobile virtual
network operator that provides voice, text and entertainment
content to subscribers who contract for cellular telephone
service. The company filed for chapter 11 protection on June 1,
2007 (Bankr. D. Del. Case No. 07-10739). Steven M. Yoder, Esq.,
Eric M. Sutty, Esq. and Mary E. Augustine, Esq. at The Bayard
Firm represent the Debtor in its restructuring efforts. In
its schedules filed with the Court, the Debtor listed total assets
of $47,603,629 and total debts of $164, 569,842. The Debtor's
exclusive period to file a plan expires on Sept. 29, 2007. (Amp'd
Mobile Bankruptcy News, Issue No. 10; Bankruptcy Creditors'
Services Inc. http://bankrupt.com/newsstand/or 215/945-7000)
ASC INC: Court Denies Financing for Operation of Remaining Unit
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan
denied the request of ASC Inc. for approval of new financing from
the company's owner to continue operating its last remaining plant
in Lansing, Michigan, Bill Rochelle of Bloomberg News reports.
According to the report, the Court's order followed objections
from the Official Committee of Unsecured Creditors and the U.S.
Trustee which stated that the financing would only benefit the
customers and ASC's owner.
In its request, the Debtor said it needs the financing because
its proposed use of excess funds was not agreed to by a secured
lender.
Headquartered in Southgate, Michigan, ASC Incorporated --
http://www.ascglobal.com/-- is a supplier of highly engineered
roof systems and of design services for the world's automakers.
The company filed for Chapter 11 protection on May 2, 2007,
(Bankr. E.D. Mich. Case No. 07-48680) Gary H. Cunningham, Esq.
and Sean M. Walsh, Esq. at Giarmarco, Mullins & Horton P.C.
represent the Debtor in its restructuring efforts. Christopher
Grosman, Esq., at Carson Fischer, P.L.C., represents the Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it listed assets and debts from
$1 million to $100 million.
AXS-ONE INC: Inks Revised Loan Agreement with Silicon Valley Bank
-----------------------------------------------------------------
AXS-One Inc. has signed a revised loan agreement with Silicon
Valley Bank providing the company with increased borrowing
flexibility and financial covenant improvements. The loan
provides for borrowing up to $2.5 million based on 80% of eligible
accounts receivable.
The loan expires on April 1, 2008, bears interest at an annual
rate of prime plus 0.25% and includes a collateral handling fee of
0.25% per month of the average monthly financed receivable
balance. This loan amendment replaces all prior financial
covenants with one covenant based on quarterly net loss levels.
"We're pleased to be able to strengthen our balance sheet with
this revised $2.5 million bank financing along with our recently-
completed $5 million debt financing," Bill Lyons, chairman and CEO
of AXS-One, commented. "These transactions provide us with
additional flexibility to fund our operations and grow our
business."
About AXS-One Inc.
Headquartered in Rutherford, New Jersey, AXS-One (AMEX: AXO) --
http://www.axsone.com/-- is a provider of high performance
Records Compliance Management solutions. The AXS-One Compliance
Platform enables organizations to implement secure, scalable and
enforceable policies that address records management for corporate
governance, legal discovery and industry regulations such as
SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and
Gramm-Leach Bliley. Founded in 1979, AXS-One has offices
worldwide including in the United States, Australia, Singapore,
United Kingdom and South Africa.
Bank Waiver
On March 6, 2007, the company entered into a Fourth Loan
Modification Agreement with the Bank effective as of Feb. 15, 2007
to amend and supplement its Amended and Restated Loan and Security
Agreement dated as of Sept. 13, 2005 between the company and the
Bank, as amended by the First Loan Modification Agreement dated as
of March 14, 2006, the Second Loan Modification Agreement dated as
of Oct. 31, 2006, and the Third Loan Modification Agreement dated
as of Nov. 11, 2006.
On May 15, 2007, the Bank waived violations to the agreement and
agreed to forbear until June 15, 2007, from exercising its rights
and remedies with respect to the default of the company for
failure to comply with the tangible net worth covenant. The
company is currently in the process of seeking to secure
additional financing. Upon receipt of such additional financing,
the Bank has preliminarily agreed to provide new financial
covenants acceptable to the company.
AXS-ONE INC: Receives Non-Compliance Notice from AMEX
-----------------------------------------------------
AXS-One Inc. received notice from the American Stock Exchange that
it was not in compliance with a second AMEX continued listing
standard.
On July 17, 2007, the AMEX notified the company that shareholders'
equity as of Dec. 31, 2006 was less than $4 million and losses
from continuing operations or net losses were incurred in three of
the four most recent fiscal years which is not in compliance with
Section 1003(a)(ii) of the AMEX Company Guide.
The recent notice is based on a review by the AMEX of AXS-One
Inc.'s 10-Q filing for the quarter ended March 31, 2007.
Previously, on Oct. 6, 2006, the AMEX notified the company that
shareholders' equity as of June 30, 2006, was less than $2 million
and losses from continuing operations or net losses were incurred
in two of the three most recent fiscal years which is not in
compliance with Section 1003(a)(i) of the AMEX Company Guide.
The company submitted a plan to the AMEX in November 2006
describing the actions it would take to come into compliance with
the listing standards by April 6, 2008, and in January 2007 the
AMEX accepted the company's plan.
When this plan was filed, it was anticipated that the company
would not be in compliance with Section 1003(a)(ii) of the AMEX
Company Guide, given that it expected to report an operating loss
for 2006. Now that the results for 2006 have been reported, the
AMEX has issued this formal notice of additional noncompliance.
The company's current 18 month plan submitted to the AMEX, if
achieved, will bring the company into compliance with both Section
1003(a)(i) and 1003(a)(ii) by April 6, 2008. During the plan
period, the company must continue to provide the AMEX staff with
updates regarding initiatives set forth in its plan of compliance.
The company will be subject to periodic review by the AMEX staff
during the plan period.
If the company is not in compliance with the continued listing
standards on April 6, 2008, or the company does not make progress
consistent with the plan during the plan period, then the AMEX may
initiate immediate delisting proceedings.
About AXS-One Inc.
Headquartered in Rutherford, New Jersey, AXS-One (AMEX: AXO) --
http://www.axsone.com/-- is a provider of high performance
Records Compliance Management solutions. The AXS-One Compliance
Platform enables organizations to implement secure, scalable and
enforceable policies that address records management for corporate
governance, legal discovery and industry regulations such as
SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and
Gramm-Leach Bliley. Founded in 1979, AXS-One has offices
worldwide including in the United States, Australia, Singapore,
United Kingdom and South Africa.
Bank Waiver
On March 6, 2007, the company entered into a Fourth Loan
Modification Agreement with the Bank effective as of Feb. 15, 2007
to amend and supplement its Amended and Restated Loan and Security
Agreement dated as of Sept. 13, 2005 between the company and the
Bank, as amended by the First Loan Modification Agreement dated as
of March 14, 2006, the Second Loan Modification Agreement dated as
of Oct. 31, 2006, and the Third Loan Modification Agreement dated
as of Nov. 11, 2006.
On May 15, 2007, the Bank waived violations to the agreement and
agreed to forbear until June 15, 2007, from exercising its rights
and remedies with respect to the default of the company for
failure to comply with the tangible net worth covenant. The
company is currently in the process of seeking to secure
additional financing. Upon receipt of such additional financing,
the Bank has preliminarily agreed to provide new financial
covenants acceptable to the company.
BANK OF AMERICA: S&P Affirms Ratings on 106 Certificate Classes
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on 106
classes of mortgage pass-through certificates from eight Bank of
America Mortgage Trust transactions.
The affirmed ratings reflect adequate actual and projected credit
enhancement that is sufficient to support the certificates at the
current rating levels. As of the June 2007 remittance period,
total delinquencies ranged from 0.00% (loan groups from various
series) to 20.34% (series 2002-E) of the current pool balances,
while severe delinquencies (90-plus days, foreclosures, and REOs)
ranged from 0.00% (loan groups from various series) to 18.18%
(series 2002-E). Cumulative realized losses, as a percentage of
the original pool balances, ranged from 0.00% (loan groups from
various series) to 0.01% (series 2002-E and 2002-K).
Subordination provides credit support for these transactions. The
underlying collateral backing the certificates was originally
composed of conventional, fully amortizing 15- and 30-year fixed-
or adjustable-rate mortgage loans secured by first liens on one-
to four-family residential properties.
Ratings Affirmed
Bank of America Mortgage Trust
Mortgage pass-through certificates
Series Class Rating
------ ----- ------
2002-5 A-6, A-WIO, A-PO AAA
2002-10 1-A-26, 1-A-32, 1-A-33, 1-A-34 AAA
2002-10 1-A-35, 1-A-WIO, 2-A-1, 2-A-4 AAA
2002-10 2-A-5, 2-A-6, 2-A-7, 2-A-WIO AAA
2002-10 A-PO, 1-B-1, 1-B-2, 2-B-1, 2-B-2 AAA
2002-10 1-B-3, 2-B-3 AA+
2002-E A-1, B-1, B-2 AAA
2002-E B-3 A
2002-J A-1, A-2, A-3, A-4, A-P, B-1 AAA
2002-J B-2 AA+
2002-J B-3 A
2002-K 1-A-1, 1-A-2, 1-A-3, 1-A-4, 1-A-5 AAA
2002-K 1-A-6, 1-A-7, 1-A-IO, 2-A-1, 2-A-2 AAA
2002-K 3-A-1, B-1-IO, B-1, B-2 AAA
2002-K B-3 AA
2006-2 A-1, A-2, A-3, A-5, A-11, A-12 AAA
2006-2 A-13, A-14, A-15, A-16, A-17, A-18 AAA
2006-2 A-19, A-20, A-21, A-22, A-23, A-24 AAA
2006-2 A-25, A-26, A-27, A-28, A-29, A-30 AAA
2006-2 A-31, A-32, A-33, A-34, A-35 AAA
2006-2 M AA
2006-3 1-A-1, 1-A-2, 1-A-3, 1-A-4, 1-A-5 AAA
2006-3 1-A-6, 1-A-7, 1-A-8, 1-A-9, 1-A-10 AAA
2006-3 1-A-11, 1-A-12, 1-A-13, 1-A-14 AAA
2006-3 1-A-15, 1-A-16, 30-IO, 30-PO AAA
2006-B 1-A-1, 2-A-1, 2-A-2, 3-A-1, 4-A-1 AAA
2006-B 4-A-2, 4-A-3, 4-A-4 AAA
2006-B B-5 B
BEAZER HOMES: SEC Issues Formal Order on Company Probe
------------------------------------------------------
Beazer Homes USA Inc., on July 20, 2007, received a formal order
of private investigation issued by the U.S. Securities and
Exchange Commission.
The company had previously disclosed on May 3, 2007, that an
informal inquiry was initiated by the SEC to determine whether any
person or entity related to Beazer Homes has violated federal
securities laws.
Beazer Homes said it will continue to cooperate fully with the SEC
regarding this matter.
Headquartered in Atlanta, Beazer Homes USA Inc., (NYSE: BZH) --
http://www.beazer.com/-- is one of the country's ten largest
single-family homebuilders with operations in Arizona, California,
Colorado, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland,
Mississippi, Nevada, New Jersey, New Mexico, New York, North
Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Texas,
Virginia and West Virginia and also provides mortgage origination
and title services to its homebuyers.
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Moody's Investors Service lowered Beazer Homes USA, Inc.'s
corporate family rating to Ba2 from Ba1 and the ratings on the
company's senior notes to Ba2 from Ba1. The ratings outlook is
negative.
BUFFALO COAL: Court Approves Graham & Associates as Accountants
---------------------------------------------------------------
The United States Bankruptcy Court for the Northern District of
West Virginia gave H. Lynden Graham, Jr., the Chapter 7 Trustee
of Buffalo Coal Inc. and its debtor-affiliates authority to
employ H.L. Graham & Associates, A.C., as his accountant.
The firm is expected to prepare all compliance related tax and
information returns and maintain all books of original entry and
other duties deemed necessary for compliance and administration of
the estate.
The Trustee disclosed to the Court that the firm's professionals
hourly rate ranges between $95 - $205.
To the best of the Debtors' knowledge the firm does not hold any
interest adverse to the Debtors' estate and is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.
About Buffalo Coal
Headquartered in Oakland, Maryland, Buffalo Coal Company, Inc.,
is engaged in coal mining and processing services. The company
filed for chapter 11 protection on May 5, 2006 (Bankr. N.D. W.V.
Case No. 06-00366). David A Hoyer, Esq., at Hoyer, Hoyer & Smith,
PLLC, represents the Debtor in its restructuring efforts. Thorp
Reed and Armstrong, LLP, represents Buffalo Coal's Official
Committee of Unsecured Creditors. When the Debtor filed for
protection from its creditors, it listed total assets of
$119,323,183 and total debts of $105,887,321.
Barton Mining Company Inc., Buffalo Coal's affiliate originally
filed under chapter 7 on July 24, 2006, and was converted to a
case under chapter 11 on Aug. 8, 2006 (Bankr. N.D. W.V. Case No.
06-00625). James R. Christie, Esq., at Clarksburg, West Virginia,
represents Barton Mining.
On June 13, 2007, the Court converted the Debtor's case from a
chapter 11 proceeding to a chapter 7 liquidation. H. Lynden
Graham, the Court-appointed chapter 7 trustee, is represented by
J. Nicholas Barth, Esq., and Stephen L. Thompson, Esq., at Barth &
Thompson.
CHASE FUNDING: S&P Junks Rating on Series 2001-2 Class IB Certs.
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on four
classes from Chase Funding Trust's series 2001-3 and 2003-1.
Concurrently, S&P placed these ratings on CreditWatch with
negative implications. Additionally, S&P lowered the ratings on
classes IM-2 and IB from series 2001-2; the rating on class IM-2
remains on CreditWatch negative, while S&P removed the rating on
class I-B from CreditWatch negative. S&P also affirmed the
ratings on the remaining 138 classes from 15 Chase Funding Trust
transactions.
The lowered ratings on classes IM-2 and IB from series 2001-3 and
on classes IIM-2 and IIB from series 2003-1 reflect realized
losses that have reduced overcollateralization. As of the June
2007 distribution date, O/C was at approximately 67% of its target
balance for series 2001-3 and 80% of its target for series 2003-1.
As of the June 2007 remittance period, series 2003-1 had incurred
an average of approximately $0.311 million in losses for the
previous three remittance periods while generating an average of
$0.094 million in excess interest each month. Total
delinquencies, as a percentage of the current pool balance, were
17.45% (series 2001-3) and 25.75% (series 2003-1), while severe
delinquencies, as a percentage of the current pool balance (90-
plus days, foreclosures, and REOs), were 12.33% (series 2001-3)
and 14.42% (series 2003-1) as of June 2007. Cumulative realized
losses, as a percentage of the original pool balances, were 2.04%
(series 2001-3) and 1.34% (series 2003-1).
The lowered ratings on classes IM-2 and IB from series 2001-2
reflect recent performance that has eroded available credit
support. Realized losses have reduced O/C, which was at 25% of
its target balance as of the June remittance date. Monthly net
losses outpaced the monthly excess interest amount. As of the
June 2007 remittance period, the deal incurred an average of
approximately $0.069 million in losses for the previous three
remittance periods while generating an average of $0.029 million
in excess spread each month. As of June 2007, total delinquencies
were $2.1 million, while severe delinquencies amounted to $1.11
million. This series has experienced cumulative losses of $4.92
million to date, and the pool has paid down to 10.82% of its
original pool balance.
S&P placed the rating on class IB from series 2002-1 on
CreditWatch negative because, with the exception of June 2007,
monthly net losses have significantly outpaced excess interest
during recent months. During the past three remittance periods,
realized losses have exceeded excess interest by approximately
1.67x. As of the June 2007 distribution date, O/C was at 82% of
its target balance. Severe delinquencies represent 3.06% of the
current pool balance, and cumulative realized losses represented
0.98% of the current pool balance.
Standard & Poor's will continue to closely monitor the performance
of the aforementioned transactions. If losses continue to outpace
excess spread and O/C continues to miss its targets, S&P will
likely take additional negative rating actions on these classes.
Conversely, if losses are covered by excess spread and O/C begins
to build toward its target balances, S&P will affirm the ratings
and remove them from CreditWatch.
The affirmed ratings reflect adequate actual and projected credit
enhancement that is sufficient to support the certificates at the
current ratings.
Subordination, excess interest, and O/C provide credit support for
these transactions. The underlying collateral backing the
certificates primarily consists of 30-year fixed- or adjustable-
rate subprime mortgage loans secured by mostly first liens on
residential properties.
Ratings Lowered and Placed on Creditwatch Negative
Chase Funding Trust
Mortgage loan asset-backed certificates
Rating
------
Series Class To From
------ ----- -- ----
2001-3 IM-2 BBB/Watch Neg A
2001-3 IB B/Watch Neg BBB
2003-1 IIM-2 BBB/Watch Neg A
2003-1 IIB BB/Watch Neg BBB
Rating Lowered and Remaining on Creditwatch Negative
Chase Funding Trust
Mortgage loan asset-backed certificates
Rating
------
Series Class To From
------ ----- -- ----
2001-2 IM-2 B/Watch Neg BBB/Watch Neg
Rating Lowered and Removed from Creditwatch Negative
Chase Funding Trust
Mortgage loan asset-backed certificates
Rating
------
Series Class To From
------ ----- -- ----
2001-2 IB CCC B/Watch Neg
Rating Placed on Creditwatch Negative
Chase Funding Trust
Mortgage loan asset-backed certificates
Rating
------
Series Class To From
------ ----- -- ----
2002-1 IB BBB-/Watch Neg BBB-
Ratings Affirmed
Chase Funding Trust
Mortgage loan asset-backed certificates
Series Class Rating
------ ----- ------
2001-2 IA-5, IA-6 AAA
2001-2 IM-1 AA
2001-3 IA-5, IA-6, IIA-1 AAA
2001-3 IM-1, IIM-1 AA
2001-3 IIM-2 A
2001-4 IA-5, IA-6, IIA-1 AAA
2001-4 IIM-1, IM-1 AA
2001-4 IM-2, IIM-2 A
2001-4 IB BBB-
2002-1 IA-5, IA-6, IIA-1, IIA-2 AAA
2002-1 IM-1, IIM-1 AA
2002-1 IM-2, IIM-2 A
2002-1 IIB BBB
2002-2 IA-5, IA-6, IIA-1 AAA
2002-2 IM-1, IIM-1 AA
2002-2 IM-2, IIM-2 A
2002-2 IB, IIB BBB
2002-3 IA-5, IA-6, IIA-1 AAA
2002-3 IM-1, IIM-1 AA
2002-3 IM-2, IIM-2 A
2002-3 IB, IIB BBB
2002-4 IA-4, IA-5, IA-6, IIA-1 AAA
2002-4 IM-1, IIM-1 AA
2002-4 IM-2, IIM-2 A
2002-4 IB, IIB BBB
2003-1 IA-4, IA-5, IA-6, IIA-2 AAA
2003-1 IM-1, IIM-1 AA
2003-1 IM-2 A
2003-1 IB BBB
2003-2 IA-4, IA-5, IA-6, IIA-2 AAA
2003-2 IM-1, IIM-1 AA
2003-2 IM-2, IIM-2 A
2003-2 IB, IIB BBB
2003-3 IA-4, IA-5, IA-6, IIA-2 AAA
2003-3 IM-1, IIM-1 AA
2003-3 IM-2, IIM-2 A
2003-3 IB, IIB BBB
2003-4 IA-4, IA-5, IA-6, IIA-2 AAA
2003-4 IM-1, IIM-1 AA
2003-4 IM-2 A
2003-4 IB, IIB BBB
2003-5 IA-3, IA-4, IA-5, IA-6, IIA-2 AAA
2003-5 IM-1, IIM-1 AA
2003-5 IM-2, IIM-2 A
2003-5 IB, IIB BBB
2003-6 IA-3, IA-4, IA-5, IA-6, IA-7, IIA-2 AAA
2003-6 IM-1 AA+
2003-6 IIM-1 AA
2003-6 IM-2 A+
2003-6 IIM-2 A
2003-6 IB BBB+
2003-6 IIB BBB
2004-1 IA-3, IA-4, IA-5, IA-6, IA-7, IIA-2 AAA
2004-1 IM-1, IIM-1 AA
2004-1 IM-2, IIM-2 A
2004-1 IB, IIB BBB
2004-2 IA-2, IA-3, IA-4, IA-5, IA-6, IIA-2 AAA
2004-2 IM-1, IIM-1 AA
2004-2 IM-2, IIM-2 A
2004-2 IB, IIB BBB
CHASE MORTGAGE: Adequate Credit Support Cues S&P to Lift Ratings
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on four
classes of mortgage pass-through certificates from Chase Mortgage
Finance Trust 2003-S2. At the same time, S&P affirmed its ratings
on 315 classes from 22 Chase Mortgage Finance Trust transactions.
The raised ratings reflect adequate actual and projected credit
support percentages. As of the June 2007 remittance period,
series 2003-S2 had no delinquencies and no cumulative realized
losses. The upgraded classes each have 2.05x the original loss
coverage levels associated with higher ratings. The appreciation
of the credit support percentages resulted from the shifting
interest structure of the transaction and significant principal
prepayments on the underlying collateral. Furthermore, the
transaction has less than 29% of its original pool balance
outstanding.
The affirmed ratings reflect adequate actual and projected credit
enhancement levels that are sufficient to support the certificates
at their current rating levels. As of the June 25, 2007,
remittance date, total delinquencies ranged from 0.00% (series
2002-S4, 2003-S4, 2003-S10, 2003-S11, and 2004-S2) to 4.46%
(series 2002-S6) of the current pool balances, while severe
delinquencies (90-plus days, foreclosures, and REOs) ranged from
0.00% (all series except 2003-S1, 2004-S1, 2005-A1, and 2005-A2)
to 0.56% (series 2005-A2). Cumulative realized losses, as a
percentage of the original pool balances, ranged from 0.00% (all
series except 2005-A2) to 0.01% (series 2005-A2).
Subordination provides credit support for these transactions. The
underlying collateral backing the certificates primarily consists
of conventional, fully amortizing, 15- and 30-year fixed-rate
mortgage loans secured by first liens on one- to four-family
residential properties.
Ratings Raised
Chase Mortgage Finance Trust
Mortgage pass-through certificates
Rating
------
Series Class To From
------ ----- -- ----
2003-S2 M AA+ AA
2003-S2 B-1 AA A
2003-S2 B-2 BBB+ BBB
2003-S2 B-3 BB+ BB
Ratings Affirmed
Chase Mortgage Finance Trust
Mortgage pass-through certificates
Series Class Rating
------ ----- ------
2002-S4 A-23, A-P, M, B-1, B-2 AAA
2002-S6 IA-4, IIA-1, A-X, A-P, M, B-1, B-2 AAA
2002-S8 IIA-X, IIA-P, IIA-1, IA-X, IA-P,
IA-1, M, B-1 AAA
2002-S8 B-2 AA
2003-S1 IA-1, IA-P, IA-X, IIA-1, IIA-P,
IIA-X, M AAA
2003-S1 B-1 AA
2003-S1 B-2 BBB+
2003-S2 A-2, A-3, A-4, A-X, A-P, A-1 AAA
2003-S2 B-4 B
2003-S3 A-1, A-2, A-3, A-4, A-5, A-8, A-9,
A-10, A-P, A-X, M AAA
2003-S3 B-1 AA
2003-S3 B-2 A
2003-S4 IA-1, IA-2, IA-3, IA-4, IA-5, IA-6,
IA-8, IA-9 AAA
2003-S4 IA-10, IA-11, IA-12, IA-13, IA-P,
IA-X, IIA-1, AAA
2003-S4 IIA-2, IIA-3, IIA-P, IIA-X AAA
2003-S4 M AA
2003-S4 B-1 A
2003-S4 B-2 BBB
2003-S4 B-3 BB
2003-S4 B-4 B
2003-S5 A-1, A-2, A-3, A-4, A-5, A-6, A-7,
A-8, A-9, A-P, A-X AAA
2003-S5 B-1 AA-
2003-S5 B-2 BBB
2003-S5 B-3 BB
2003-S5 B-4 B+
2003-S6 A-1, A-2, A-3, A-P, A-X AAA
2003-S6 M AA
2003-S6 B-1 A
2003-S6 B-2 BBB
2003-S6 B-3 BB
2003-S6 B-4 B
2003-S7 A-1, A-2, A-3, A-4, A-P, A-X AAA
2003-S7 M AA
2003-S7 B-1 A
2003-S7 B-2 BBB
2003-S7 B-3 BB
2003-S7 B-4 B
2003-S8 A-1, A-2, A-3, A-P, A-X AAA
2003-S8 M AA
2003-S8 B-1 A
2003-S8 B-2 BBB
2003-S8 B-3 BB
2003-S8 B-4 B
2003-S9 A-1, A-P, A-X AAA
2003-S9 M AA
2003-S9 B-1 A
2003-S9 B-2 BBB
2003-S9 B-3 BB
2003-S9 B-4 B
2003-S10 A-1, A-2, A-3, A-P, A-X AAA
2003-S10 M AA
2003-S10 B-1 A
2003-S10 B-2 BBB
2003-S10 B-3 BB
2003-S10 B-4 B
2003-S11 IA-1, IIA-1, IIA-2, IIA-3, IIA-4,
IIA-5, IIA-6 AAA
2003-S11 IIA-7, IIA-8, IIA-9, IIA-10, IIIA-1,
A-P, A-X AAA
2003-S11 M AA
2003-S11 B-1 A
2003-S11 B-2 BBB
2003-S11 B-3 BB
2003-S11 B-4 B
2003-S12 IA-1, IA-2, IA-3, IA-P, IIA-1, IIA-P,
A-X AAA
2003-S12 M AA
2003-S12 B-1 A
2003-S12 B-2 BBB
2003-S12 B-3 BB
2003-S12 B-4 B
2003-S13 A-1, A-2, A-3, A-5, A-6, A-7, A-8,
A-9, A-10, A-11 AAA
2003-S13 A-12, A-13, A-14, A-15, A-16, A-17,
A-18, A-X AAA
2003-S13 M AA
2003-S13 B-1 A
2003-S13 B-2 BBB
2003-S13 B-3 BB
2003-S13 B-4 B
2003-S14 IA-1, IA-2, IA-3, IA-4, IA-5, IIA-1,
IIA-2, IIA-3 AAA
2003-S14 IIA-4, IIA-5, IIA-6, IIA-7, IIA-8,
IIA-9, IIA-10 AAA
2003-S14 IIIA-1, IIIA-2, IIIA-3, IIIA-4,
IIIA-6, IIIA-7 AAA
2003-S14 IIIA-8, IIIA-9, IIIA-10, A-P, A-X AAA
2003-S14 M AA
2003-S14 B-1 A
2003-S14 B-2 BBB
2003-S14 B-3 BB
2003-S14 B-4 B
2003-S15 IA-1, IA-2, IA-3, IA-4, IA-X, IIA-1,
IIA-2, IIA-3 AAA
2003-S15 IIA-4, IIA-5, IIA-6, IIA-7, IIA-8,
IIA-9, IIA-10 AAA
2003-S15 IIA-11, IIA-12, IIA-13, IIA-14,
IIA-15, IIA-16 AAA
2003-S15 IIA-17, IIA-18, IIA-X, A-P AAA
2003-S15 M AA
2003-S15 B-1 A-
2003-S15 B-2 BBB-
2003-S15 B-3 BB
2003-S15 B-4 B
2004-S1 A-1, A-2, A-3, A-4, A-5, A-6, A-7, A-P AAA
2004-S1 M AA
2004-S1 B-1 A
2004-S1 B-2 BBB
2004-S1 B-3 BB
2004-S1 B-4 B
2004-S2 IA-1, IA-2, IA-3, IA-4, IA-5, IIA-1,
IIA-2, IIA-3 AAA
2004-S2 IIA-4, IIA-5, IIA-6, IIA-7, IIA-8,
IIA-9, A-P, A-X AAA
2004-S2 M AA
2004-S2 B-3 BB
2004-S2 B-4 B
2005-A1 1-A-1, 1-A2, 2-A1, 2-A2, 2-A3,
2-A4, 2-A5 AAA
2005-A1 3-A1, 3-A2, 3-A3, 3-A4 AAA
2005-A2 1-A1, 1-A2, 1-A3, 1-A4, 1-A5, 1-A6,
1-AX AAA
2005-A2 2-A1, 2-A2, 2-A3, 2-A4, 2-AX, 3-A1,
3-A2 AAA
2005-A2 3-A3, 3-A4, 3-A5, 3-A6, 3-AX AAA
CLARKLIFT OF ORLANDO: Case Summary & 20 Largest Unsec. Creditors
----------------------------------------------------------------
Debtor: Clarklift of Orlando, Inc.
dba Absolute Storage Products
dba Clarklift of Jacksonville, Inc.
dba New Holland and Tekeuchi of Central Florida
dba Clarklift of Tampa, Inc.
dba East Coast
800 West Landstreet Road
Orlando, FL 32824
Bankruptcy Case No.: 7-03154
Type of Business: The Debtor sells, services, rents, and repairs
equipment lines such as Clark Forklift Trucks,
Takeuchi Track Loaders and Excavators, New
Holland Tractors and Skid Streers, Inc.
See http://www.absolutestorageproducts.com/
Chapter 11 Petition Date: July 23, 2007
Court: Middle District of Florida (Orlando)
Judge: Karen S. Jennemann
Debtor's Counsel: Elizabeth A. Green, Esq.
Jimmy D. Parrish, Esq.
Latham Shuker Eden & Beaudine LLP
390 North Orange Avenue, Suite 600
Orlando, FL 32801
Tel: (407) 481-5800
Fax: (407) 481-5801
Total Assets: $15,000,000
Total Debts: $11,000,000
Debtor's List of its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
American Express Credit Cards $390,511
P.O. Box 360001
Fort Lauderdale, FL 33336-0001
Southwest Equipment Sales Trade Debt $110,349
4275 Broadway - Unit E
Denver, CO 80216
Kingway Material Handling Supplier $97,721
P.O. Box 99631
Chicago, IL 60696
Blue Giant Equipment Corp. Trade Debt $78,995
Bank of America Credit Cards $76,990
KESMAC, Inc. Supplier $70,806
Versaflex Inc. Trade Debt $60,389
JLG Industries, Inc. Trade Debt $52,750
Mountain Heritage, Inc. Trade Debt $50,522
Shepler's Trade Debt $49,108
Diamond Tool Products Cnd. Trade Debt $43,794
Wright Express Gas Cards $38,379
Cascade Corporation Trade Debt $35,273
Nordock Inc. Trade Debt $33,902
Universal Underwriters GRP Insurance $32,000
Advanced Floor Products Trade Debt $31,381
EP Equipment, USA Corp. Trade Debt $26,621
Surface Preparation Trade Debt $26,000
Systems Material Handling Trade Debt $25,648
AWP industries, inc. Trade Debt $25,530
CNH GLOBAL: Earns $228 Million in Second Quarter Ended June 30
--------------------------------------------------------------
CNH Global N.V. reported second quarter 2007 net income of
$228 million, up 55%, compared to net income of $147 million in
the second quarter of 2006. Results included restructuring
charges, net of tax, of $19 million in the second quarter of 2007,
compared with $7 million in the second quarter of 2006. Net
income excluding restructuring charges, net of tax, was
$247 million, up 60%, compared to $154 million in the prior year.
First half 2007 net income of $323 million was up 70%, compared to
net income of $190 million in the first half of 2006. Results
included restructuring charges, net of tax, of $29 million in the
first half of 2007, compared with $10 million in the first half of
2006. Net income excluding restructuring charges, net of tax, was
$352 million, up 76%, compared to $200 million in the prior year.
Net Debt And Operating Cash Flow
Equipment operations net debt/cash position was net cash of
$531 million on June 30, 2007, compared to net debt of $6 million
on March 31, 2007, and $263 million on Dec. 31, 2006.
In the quarter, equipment operations net debt decreased by
$537 million. Operating activities, primarily from earnings and
changes in other assets and liabilities, generated $583 million of
cash in the quarter. Working capital, net of currency variations,
decreased by $12 million in the quarter. Capital expenditures, in
the quarter, were $51 million. Year-to-date, equipment operations
net debt has been reduced by $794 million, driven by $913 million
of cash generation by operating activities.
At incurred currency rates, equipment operations working capital
on June 30, 2007, was $2,105 million, up $29 million from
$2 billion at March 31, 2007.
Case New Holland Inc. Notes Redemption
In June 2007, Case New Holland Inc. announced the redemption of
the full $1 billion aggregate principal amount of its outstanding
9-1/4% senior notes due 2011 on Aug. 1, 2007.
Rubin McDougal, CNH's chief financial officer, cited "CNH's
improved industrial and financial performance, high cash balances,
a commitment to improve CNH's balance sheet structure while
reducing interest expense and the continuing support of the Fiat
Group as the principal reasons behind the early redemption. We
will permanently retire a portion of the notes," he said, "and
refinance the balance through new term financing available from
Fiat Finance North America."
The redemption will have a net positive earnings impact over time
and will allow CNH to better manage its liquidity. The decision
to redeem the notes also was facilitated by Standard and Poor's
raising of CNH's credit rating to BB+, with a positive outlook, at
the end of May. One-time charges to redeem the notes and write-
off remaining unamortized issuance costs will total approximately
$60 million and are expected to be recorded in the third quarter
of 2007.
Financial services net debt increased by $1.7 billion to
$6.7 billion on June 30, 2007, from $4,977 million on March 31,
2007, driven primarily by financing of higher levels of
receivables.
"Our equipment operations gross margin rose 0.7 percentage points
compared with the second quarter last year -- our eighth
consecutive quarter of year-over-year gross margin improvement.
Our industrial operating margin rose 1.5 percentage points to
10.8%, making it the best quarterly margin in CNH history," said
Harold Boyanovsky, CNH president and chief executive officer.
"Our stronger performance reflects our revitalized brand, customer
and quality focus and stronger worldwide agricultural and
construction equipment industries. We are reaffirming our
industrial operating margin target of between 7.6% and 8.4% for
the full year."
About CNH Global
CNH Global N.V. (NYSE: CNH) -- http://www.cnh.com/-- is engaged
in agricultural and construction equipment businesses. Supported
by about 11,500 dealers in 160 countries, CNH brings together the
knowledge and heritage of its Case and New Holland brand families
with its worldwide commercial, industrial, product support and
finance organizations. CNH Global N.V. is a majority-owned
subsidiary of Fiat S.p.A. (FIA.MI) (NYSE: FIA).
* * *
As reported in the Troubled Company Reporter on June 4, 2007,
Standard & Poor's Ratings Services raised its corporate credit
rating on CNH Global N.V. and related entities to 'BB+' from 'BB'
following the same rating action taken by Standard & Poor's on
CNH's parent company, Italy-based Fiat SpA. The outlook is
positive.
COMM 2005-C6: Moody's Affirms Ba3 Rating on Class L Certificates
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 21 classes of
COMM 2005-C6, Commercial Mortgage Pass-Through Certificates as:
* Class A-1, $34,013,365, affirmed at Aaa
* Class A-1A, $510,013,403, affirmed at Aaa
* Class A-2, $184,500,000, affirmed at Aaa
* Class A-3, $59,100,000, affirmed at Aaa
* Class A-4, $35,500,000, affirmed at Aaa
* Class A-5A, $792,716,000, affirmed at Aaa
* Class A-5B, $113,246,000, affirmed at Aaa
* Class A-AB, $71,900,000, affirmed at Aaa
* Class A-J, $170,438,000, affirmed at Aaa
* Class X-C, Notional, affirmed at Aaa
* Class X-P, Notional, affirmed at Aaa
* Class B, $45,450,000, affirmed at Aa2
* Class C, $19,884,000, affirmed at Aa3
* Class D, $36,928,000, affirmed at A2
* Class E, $28,406,000, affirmed at A3
* Class F, $25,566,000, affirmed at Baa1
* Class G, $25,565,000, affirmed at Baa2
* Class H, $22,726,000, affirmed at Baa3
* Class J, $14,203,000, affirmed at Ba1
* Class K, $11,362,000, affirmed at Ba2
* Class L, $5,681,000, affirmed at Ba3
As of the July 10, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 0.7%
to $2.26 billion from $2.27 billion at securitization. The
Certificates are collateralized by 137 loans, ranging in size from
less than 1.0% to 9.7% of the pool, with the top 10 loans
representing 44.2% of the pool. The pool includes four investment
grade shadow rated loans, representing 17.7% of the pool.
The pool has not realized any losses since securitization and
currently there are no loans in special servicing. Twelve loans,
representing 7.7% of the pool, are on the master servicer's
watchlist.
Moody's was provided with year-end 2006 operating results for
84.6% of the pool. Moody's weighted average loan to value ratio
for the conduit component is 100.6%, compared to 102.3% at
securitization, resulting in the affirmation of all classes.
The largest shadow rated loan is the Lakewood Center Loan
($218.0 million -- 9.7%), which is secured by the borrower's
interest in a 2.1 million square foot regional mall located in
Lakewood, California. The mall is anchored by Macy's, J.C.
Penney, Target and Mervyn's and was 88.6% occupied as of December
2006, essentially the same as at securitization. Moody's current
shadow rating is Baa3, the same as at securitization.
The second largest shadow rated loan is the General Motors
Building Loan ($109.0 million -- 4.8%), which represents a pari
passu interest in a $800.0 million first mortgage secured by a
1.9 million square foot Class A office building located in New
York City. The property was 93.0% occupied as of April 2007,
compared to 96.0% at securitization. Moody's current shadow
rating is A3, the same as at securitization.
The third largest shadow rated loan is the Loews Universal Hotel
Portfolio ($65.0 million -- 2.9%), which represents a pari passu
interest in a $450.0 million first mortgage loan secured by three
full service hotel properties. The three hotels are all located
in Orlando, Florida and total 2,400 guest rooms. RevPAR for
calendar year 2006 was $171.71, compared to $164.30 at
securitization. Moody's current shadow rating is Baa3, the same
as at securitization.
The fourth largest shadow rated loan is the 9701 Apollo Drive Loan
($6.8 million -- 0.3%), which is secured by a 94,000 square foot
office building located in Largo, Maryland. The property was
100.0% occupied as of December 2006, compared to 78.6% at
securitization. The loan is structured with a 15-year
amortization schedule and has amortized by approximately 8.5%
since securitization. Moody's current shadow rating is Aa2,
compared to Aa3 at securitization.
The top three conduit loans represent 16.7% of the pool. The
largest conduit loan is the Kaiser Center Loan ($147.0 million --
6.5%), which is secured by a 785,000 square foot Class A office
building located in Oakland, California. The property was 92.7%
occupied as of December 2006, compared to 94.6% at securitization.
Moody's LTV is 114.5%, essentially the same as at securitization.
The second largest conduit loan is the Private Mini Storage
Portfolio ($144.7 million -- 6.4%), which is secured by a
portfolio of 38 self storage facilities totaling 22,863 units and
located in six states. Moody's LTV is 92.3%, essentially the same
as at securitization.
The third largest conduit loan is the Longacre House Loan
($85.0 million -- 3.8%), which is secured by a 293-unit Class A
multifamily property located in New York City. The property was
97.7% occupied as of January 2007, compared to 99.7% at
securitization. Moody's LTV is 110.9%, the same as at
securitization.
CREDIT SUISSE: Moody's Affirms Rating on Class O Certs. at B3
-------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 24 classes of
Credit Suisse First Boston Mortgage Securities Corp., Commercial
Mortgage Pass-Through Certificates, Series 2005-C2 as:
* Class A-1, $38,780,981, affirmed at Aaa
* Class A-1-A, $439,302,388, affirmed at Aaa
* Class A-2, $75,897,000, affirmed at Aaa
* Class A-3, $107,275,000, affirmed at Aaa
* Class A-4, $365,026,000, affirmed at Aaa
* Class A-AB, $74,464,000, affirmed at Aaa
* Class A-J, $110,350,000, affirmed at Aaa
* Class A-MFL, $80,000,000, affirmed at Aaa
* Class A-MFX, $80,508,000, affirmed at Aaa
* Class A-SP, Notional, affirmed at Aaa
* Class A-X, Notional, affirmed at Aaa
* Class B, $30,095,000, affirmed at Aa2
* Class C, $16,051,000, affirmed at Aa3
* Class D, $28,089,000, affirmed at A2
* Class E, $18,057,000, affirmed at A3
* Class F, $20,064,000, affirmed at Baa1
* Class G, $16,050,000, affirmed at Baa2
* Class H, $20,064,000, affirmed at Baa3
* Class J, $8,025,000, affirmed at Ba1
* Class K, $8,026,000, affirmed at Ba2
* Class L, $8,025,000, affirmed at Ba3
* Class M, $2,007,000, affirmed at B1
* Class N, $6,019,000, affirmed at B2
* Class O, $6,019,000, affirmed at B3
As of the June 15, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 1.4%
to $1.59 billion from $1.61 billion at securitization. The
Certificates are collateralized by 168 loans, ranging in size from
less than 1.0% to 9.3% of the pool, with the top 10 loans
representing 45.1% of the pool. Two loans, representing 3.0% of
the pool, have defeased and have been replaced with U.S.
Government securities. The pool has not realized any losses since
securitization. There are no loans in special servicing
currently. Twenty loans, representing 7.3% of the pool, are on
the master servicer's watchlist.
Moody's was provided with full-year 2005 and partial-year 2006
operating results for 100.0% and 99.2%, respectively, of the pool.
Moody's weighted average loan to value ratio for the conduit
component is 99.5%, essentially the same as at securitization.
The top three conduit loans represent 23.0% of the pool. The
largest conduit loan is the Tri-County Mall Loan ($148.7 million -
- 9.4%), which is secured by the borrower's interest in a
1.1 million square foot, regional mall (595,600 square feet of
collateral) located in Cincinnati, Ohio. There is also a junior
non-pooled loan of $8.96 million included in the trust and
$12 million of mezzanine debt held outside the trust. Overall
performance has declined due to decreased rental income. Moody's
LTV is in excess of 100.0%, compared to 92.5% at securitization.
The second largest conduit loan is the 390 Park Avenue Loan
($110.0 million -- 6.9%), which is secured by a 234,240 square
foot office building located in New York City. Moody's LTV is in
excess of 100.0%, the same as at securitization.
The third largest conduit loan is the Washington Mutual Irvine
Campus Loan ($106.0 million -- 6.7%), which is secured by a
414,597 square foot four building office complex located in
Irvine, California. The loan is interest only for its entire
term. Moody's LTV is in excess of 100.0%, the same as at
securitization.
CSFB HOME: Moody's Lowers Ratings on 22 Tranches
------------------------------------------------
Moody's Investors Service has downgraded the ratings of 22
tranches issued by CSFB Home Equity Asset Trust. Additionally
Moody's has placed the ratings of 32 HEAT tranches on review for
possible downgrade. The collateral backing each deal placed on
review consists primarily of first-lien, subprime fixed and
adjustable rate mortgage loans.
Each deal being downgraded or placed on review for possible
downgrade has experienced an increasing rate of severely
delinquent loans. Additionally, the recent pace of losses in each
deal has eroded overcollateralization below its targeted level.
The timing of losses coupled with passing of performance triggers
has caused the protection available to the subordinate bonds to be
diminished.
Complete rating actions are:
Credit Suisse First Boston Mortgage Securities Corp.
Issuer: CSFB Home Equity Pass-Through Certificates, Series 2004-8
* Cl. B-2, Downgraded to Ba1 from Baa2
* Cl. B-3, Downgraded to Ba2 from Baa3
Issuer: Credit Suisse First Boston Mortgage Acceptance Corp.
Series 2002-5
* Cl. B-1, Placed on Review for Possible Downgrade,
currently B1
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-1
* Cl. M-2, Placed on Review for Possible Downgrade,
currently A2
* Cl. B-1, Placed on Review for Possible Downgrade,
currently B3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-2
* Cl. M-2, Placed on Review for Possible Downgrade,
currently A2
* Cl. B-1, Placed on Review for Possible Downgrade,
currently B2
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-3
* Cl. M-2, Placed on Review for Possible Downgrade,
currently A2
* Cl. B-1, Downgraded to Caa3 from B3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2002-4
* Cl. B-1, Placed on Review for Possible Downgrade,
currently Ba3
* Cl. M-2, Placed on Review for Possible Downgrade,
currently A2
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-1
* Cl. B-2, Placed on Review for Possible Downgrade,
currently B2
* Cl. B-3, Placed on Review for Possible Downgrade,
currently Caa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-2
* Cl. M-3, Placed on Review for Possible Downgrade,
currently A2
* Cl. B-1, Placed on Review for Possible Downgrade,
currently B2
* Cl. B-2, Placed on Review for Possible Downgrade,
currently Caa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-3
* Cl. M-3, Placed on Review for Possible Downgrade,
currently A2
* Cl. B-1, Placed on Review for Possible Downgrade,
currently Ba2
* Cl. B-2, Placed on Review for Possible Downgrade,
currently Caa2
* Cl. B-3, Placed on Review for Possible Downgrade,
currently Caa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-4
* Cl. B-2, Placed on Review for Possible Downgrade,
currently Ba1
* Cl. B-3, Placed on Review for Possible Downgrade,
currently B1
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-5
* Cl. M-3, Placed on Review for Possible Downgrade,
currently A3
* Cl. B-1, Placed on Review for Possible Downgrade,
currently Ba2
* Cl. B-2, Placed on Review for Possible Downgrade,
currently B2
* Cl. B-3, Placed on Review for Possible Downgrade,
currently Caa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-6
* Cl. M-3, Placed on Review for Possible Downgrade,
currently A3
* Cl. B-1, Placed on Review for Possible Downgrade,
currently Baa2
* Cl. B-2, Placed on Review for Possible Downgrade,
currently B1
* Cl. B-3, Placed on Review for Possible Downgrade,
currently Caa2
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-7
* Cl. B-1, Placed on Review for Possible Downgrade,
currently Baa1
* Cl. B-2, Placed on Review for Possible Downgrade,
currently Ba2
* Cl. B-3, Placed on Review for Possible Downgrade,
currently B3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2003-8
* Cl. B-2, Placed on Review for Possible Downgrade,
currently Baa2
* Cl. B-3, Placed on Review for Possible Downgrade,
currently Ba3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-1
* Cl. B-1, Downgraded to Baa3 from Baa1
* Cl. B-2, Downgraded to Ba2 from Baa2
* Cl. B-3, Downgraded to B3 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-2
* Cl. B-1, Downgraded to Baa3 from Baa1
* Cl. B-2, Downgraded to Ba2 from Baa2
* Cl. B-3, Downgraded to B3 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-3
* Cl. B-1, Downgraded to Baa3 from Baa1
* Cl. B-2, Downgraded to Ba2 from Baa2
* Cl. B-3, Downgraded to B1 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-4
* Cl. B-1, Downgraded to Baa3 from Baa1
* Cl. B-2, Downgraded to Ba2 from Baa2
* Cl. B-3, Downgraded to Ba3 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-5
* Cl. B-1, Downgraded to Baa3 from Baa1
* Cl. B-2, Downgraded to Ba2 from Baa2
* Cl. B-3, Downgraded to Ba3 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-6
* Cl. B-2, Downgraded to Ba1 from Baa2
* Cl. B-3, Downgraded to Ba2 from Baa3
Issuer: Credit Suisse First Boston Mortgage Securities Corp.
Series 2004-7
* Cl. B-2, Downgraded to Ba1 from Baa2
* Cl. B-3, Downgraded to Ba2 from Baa3
CT CDO: Fitch Affirms Low-B Ratings on Five Classes
---------------------------------------------------
Fitch has upgraded seven and affirmed seven classes of CT CDO III
Ltd./Corp. as:
-- $53.7 million class A-1 affirmed at 'AAA';
-- $147.2 million class A-2 affirmed at 'AAA';
-- $29.0 million class B upgraded to 'AA+' from 'AA';
-- $13.7 million class C upgraded to 'AA-' from 'A';
-- $5.1 million class D upgraded to 'A+' from 'A-';
-- $6.8 million class E upgraded to 'A' from 'BBB+';
-- $6.8 million class F upgraded to 'A-' from 'BBB';
-- $9.8 million class G upgraded to 'BBB' from 'BBB-';
-- $11.5 million class H upgraded to 'BBB-' from 'BB+';
-- $6.8 million class J affirmed at 'BB';
-- $3.8 million class K affirmed at 'BB-';
-- $5.1 million class L affirmed at 'B+';
-- $5.5 million class M affirmed at 'B';
-- $4.3 million class N affirmed at 'B-';
Classes O, X and the Preferred Shares class are not rated by
Fitch.
CT CDO III is a static commercial mortgage-backed securities
resecuritization, which closed Aug. 4, 2005. CT Investment
Management Co., LLC, a wholly owned subsidiary of Capital Trust,
Inc., serves as the collateral administrator.
The upgrades are driven primarily by the improved credit quality
of the portfolio and seasoning of the collateral. The
certificates are collateralized by all or a portion of 22 classes
of fixed-rate CMBS in 14 separate underlying CMBS transactions.
One asset (13.1%) is a non-rated first loss class. Two assets
(9.3%) are first loss positions in two large loan transactions and
are rated 'BB' (7.8%) and 'A' (1.5%). All other assets have
credit enhancements within their respective transactions greater
than 2%.
Since Fitch's last review (August 2006), 30.5% of the portfolio
was upgraded a weighted average of 1.8 notches and no downgrades
were experienced. According to the June 2007 trustee report, the
CDO has paid down $7.3 million to the class A-1 notes to date,
representing 2.1% of the collateral. Based on Fitch's actual
rating or on Fitch's internal credit assessment for those classes
not rated by Fitch, the weighted average rating factor has
improved to the 'BB/BB-' category from the 'BB-/B+' category at
issuance. The CMBS assets in the collateral pool ranges from the
1996 vintage to the 1999 vintage, with approximately nine years of
seasoning. Over 98% of the underlying transactions have a named
special servicer with a Fitch rating of 'CSS1'
Delinquencies in the underlying transactions are: 30 days (0.04%);
60 days (0.19%); 90 days or more (0.13%); foreclosure (0.07%) and
REO (0.22%).
The ratings of the class A and B notes address the likelihood that
investors will receive full and timely payment of interest, as per
the governing documents, as well as the stated balance of
principal by the legal final maturity date. The ratings of the
class C through H and J through N notes address the likelihood
that investors will receive ultimate interest payments, as per the
governing documents, as well as the stated balance of principal by
the legal final maturity date.
CW MEDIA: High Financial Risk Cues S&P's B Long-Term Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Winnipeg, Manchester-based CW Media
Holdings Inc., a company formed to enable GS Capital Partners VI
LP, a private equity affiliate of Goldman, Sachs & Co. and CanWest
Global Communications Corp., to purchase the broadcast division of
Alliance Atlantis Communications Inc. (BB/Watch Neg/--) for about
CDN $1.44 billion. The outlook is negative.
At the same time, Standard & Poor's assigned its 'B+' senior
secured bank loan rating, with a recovery rating of '2', to CW
Media's planned CDN $525 million senior secured bank facility.
The '2' recovery rating indicates an expectation of substantial
(70%-90%) recovery of principal in the event of a payment default.
S&P also assigned a 'CCC+' debt rating to the company's proposed
CDN $365 million senior unsecured discount notes due 2015. The
unsecured notes are rated two notches below the corporate credit
rating because of the significant amount of first-lien priority
debt in the capital structure as a percentage of total assets, and
the resultant minimal residual asset value in a downside scenario.
S&P expect the deal to close in August 2007.
"The ratings on CW Media reflect its high financial risk resulting
from the proposed leveraged acquisition of Alliance Atlantis'
broadcast business, only slightly offset by the company's solid
business position in the specialty television broadcasting and
operating performance," said Standard & Poor's credit analyst Lori
Harris. CW Media is a Canadian media company that operates 13
Canadian specialty TV channels and has a partial interest in five
other specialty channels, resulting in a subscriber base of about
47 million.
The corporate credit rating assignment follows Standard & Poor's
analysis of GSCP's and CanWest's proposed acquisition of Alliance
Atlantis' broadcast business in a going-private transaction.
Proceeds from the bank facilities and senior unsecured discount
notes will help fund the purchase. The sponsors will contribute
CDN $704 million of common equity toward the purchase, with GSCP
having 71% economic ownership of the new entity and CanWest owning
the remaining 29%.
The negative outlook reflects S&P's concern that CW Media's high
debt leverage could remain elevated because of the growing senior
unsecured note balance. S&P could lower the ratings if the
company is unable to reduce leverage as planned or if its
liquidity position weakens. Alternatively, S&P could revise the
outlook to stable if CW Media demonstrates solid operating
performance and improved credit measures.
DAVID SLICE: Case Summary & 18 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: David Troy Slice
fdba D.T.S. Construction
Shelli Foster Slice
aka Shelli Dale Foster
dba The Curio
141 Kelli Court
Roebuck, SC 29376
Bankruptcy Case No.: 07-03842
Chapter 11 Petition Date: July 20, 2007
Court: District of South Carolina (Spartanburg)
Judge: John E. Waites
Debtor's Counsel: Robert H. Cooper, Esq.
3523 Pelham Road, Suite B
Greenville, SC 29615
Tel: (864) 271-9911
Fax: (864) 232-5236
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $100,000 to $1 Million
Debtor's 18 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
First Equity Bank unsecured credit $20,000
P.O. Box 84075 card
Columbus, GA 31901-4075
Wachovia Bank vehicle; value $14,000
P.O. Box 563966 of security:
Charlotte, NC 28262-3966 $6,250
American Express unsecured credit $8,500
P.O. Box 360002 card
Fort Lauderdale, FL
33336-0002
Southeastern Concrete credit line $6,700
Ford Motor Credit vehicles; value $6,500
of security:
$6,050
Boral Bricks, Inc. credit line $5,400
Chase unsecured credit $5,000
card
Chapman Concrete Products, credit line $4,200
Inc.
Citi Bank unsecured credit $3,723
card
Capital One unsecured credit $3,561
card
Advanta unsecured credit $2,458
card
Revere Building Products credit line $2,300
American Express unsecured credit $1,500
Dallas, TX card
American Express unsecured credit $1,400
Fort Lauderdale, FL card
33329-7879
Ganz credit line $980
Bellsouth utilities $512
A.D.T. services $435
Trapp/Private Gardens credit line $145
DELPHI CORP: Plans Opening of New Diesel Plant in Romania
---------------------------------------------------------
In a move to service its growing customer base, Delphi Corporation
is planning to open a new diesel engine management system
components plant. The facility, to be operated by Delphi
Powertrain Systems division, is scheduled to receive equipment in
late 2007. The site is in Iasi, in north-east Romania. The
initial location is a pre-existing industrial site which will
begin the first phase of manufacturing operations before year-end.
Delphi has well-developed expansion plans that call for several
additional phases of new investment to launch products specified
in already awarded new business contracts. Each of these future
multi-million dollar phases of investment are for new building,
machinery and equipment and will support attainment of long-range
planned capacity in Iasi. Subject to Delphi's board of directors
supporting future phases of investment, Delphi's total presence in
Iasi could reach over 1,000 workers and could accumulate to exceed
EUR100 million investment.
"We have recently won a large number of new programmes and new
customers, especially for diesel engine management systems that
are Euro V compatible and we need to support our customers who are
rapidly expanding in Central and Eastern Europe. We require
additional plant capacity to support our continued growth," Jose
Avila, general manager for Delphi Diesel Systems, said. "Delphi
is a key player in the global diesel market and this new site will
strengthen our position by providing an efficient new
manufacturing base nearer to our customers."
With this planned site, Delphi will strengthen its extensive
global diesel manufacturing footprint. The group operates 13
sites dedicated to the diesel engine management system activity
globally and has a presence in Brazil, Korea, India, Turkey,
Mexico, France, Spain and the United Kingdom and now intends to
add Romania to the list of global locations.
As a dedicated diesel site, the Iasi plant would produce high-
precision diesel fuel injection components, mainly pumps and
injectors for common rail systems, and will serve various
customers around the world.
Recruitment to fill jobs at the initial facility has already
started. According to Michel Stanciu, director of manufacturing
strategy & engineering for Delphi Diesel Systems, workers at the
plant will receive important training. "Iasi has a deep pool of
well-qualified employees from which we will select," Mr. Stanciu
said. "To augment those talents, each new employee will go
through an extensive training programme." Mr. Stanciu, a native
Romanian, was integral in bringing the plant to Romania and
expects mutual benefits to be realized by the company and the
country through the localization of the plant. "We look forward
to a continued strong partnership with government officials,
economic development agencies and local educational institutions
to finalize our long-range investment and capacity expansion
plans," Mr. Stanciu said.
Precision Required from Diesel Plants
The manufacturing of diesel fuel injection systems requires an
extremely skilled workforce. The common rail system working at a
pressure up to 1800 bar requires a high-precision machining down
to a few microns and the assembly operation needs to be done in a
very strictly controlled clean room.
Delphi's Multec Common Rail System
The Delphi Multec Common Rail Diesel Fuel Injection System is
widely used throughout the industry. It is a high-value, cost-
competitive servo-hydraulic system that is not only high
performance but simple and robust. In addition, Delphi's Multec
Common Rail injection is easily packaged, and takes up less space
than competing systems. Many of the world's top automakers have
chosen this Delphi system over all others. Customers include
familiar names such as: Ford PAG, Hyundai, Kia, PSA Peugeot
Citroen, Renault-Nissan, Ssangyong, Suzuki.
Strong expertise
Delphi engineers have extraordinary expertise in air, fuel and
exhaust management systems, because they work with all these
technologies in the Delphi portfolio. Delphi engineers can easily
orchestrate them to work in optimum harmony. This flexible,
balanced expertise allows them to design the best fuel injection
system solutions to meet car makers' specialized needs.
Delphi Powertrain Systems
Delphi's powertrain technologies provide robust solutions to
complex challenges, helping its customers develop vehicles that
offer outstanding performance, refinement and emissions. They
include multi point injection and direct injection gasoline
systems, common rail, rotary pump diesel systems in a range of
capacities and, for heavy duty diesel applications, Electronic
Unit Injectors and Electronic Unit Pumps. All are complemented by
innovative fuel handling, evaporative emissions, engine and
transmission electronic controls, valve train, and after-treatment
solutions.
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 Dec. 31, 2007.
DEL PRADO HOLDINGS: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------------------
Lead Debtor: Del Prado Holdings, Inc.
dba www.quick911cashnow.com
dba www.borrowcashnow.com
20423 State Road 7, Suite F6-350
Boca Raton, FL 33498
Bankruptcy Case No.: 07-15717
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Authorized Pay Day, L.L.C. 07-15718
White Sands Ventures, L.L.C. 07-15721
Type of business: The Debtor is a consumer lender.
See http://www.borrowcashnow.com
Chapter 11 Petition Date: July 23, 2007
Court: Southern District of Florida (West Palm Beach)
Judge: Paul G. Hyman, Jr.
Debtors' Counsel: Bradley S. Shraiberg, Esq.
Kluger, Peretz, Kaplan & Berlin, P.L.
2385 Northwest Executive Center Drive, Suite 300
Boca Raton, FL 33431
Tel: (561) 961-1830
Fax: (561) 961-1831
Estimated Assets Estimated Debts
---------------- ---------------
Del Prado Holdings, Inc. $1 Million to $1 Million to
$100 Million $100 Million
Authorized Pay Day, L.L.C. $1 Million to $1 Million to
$100 Million $100 Million
White Sands Ventures, L.L.C. $1 Million to $1 Million to
$100 Million $100 Million
Debtors' Consolidated 12 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Platinum Credit trade debt $5,000,000
Carnegie Hall Tower
152 West 57 Street,
54th Floor
New York, NY 10019
Addy Castillo loan $200,000
400 Alton Road
Miami Beach, FL 33139
Gil Castillo loan $200,000
400 Alton Road
Miami Beach, FL 33139
Swiss Marketing, Inc. trade debt $22,575
Monetizeit.net trade debt $16,416
Centrinex trade debt $13,455
Duane Morris, L.L.P. trade debt $6,765
Rich Keller trade debt $4,000
Dana Cohen, Esq. trade debt $3,500
Glassberg & Mermer trade debt $2,362
Teletrack trade debt $741
BriMedia trade debt $2
DOVECORP ENT: Obtains $1 Mil. DIP Facility from Argosy Bridge
-------------------------------------------------------------
DoveCorp Enterprises Inc., disclosed that in connection with the
court order obtained under the Companies' Creditors Arrangement
Act, the Debtor-in-Possession financing has been arranged with
Argosy Bridge Fund L.P. II, DoveCorp's senior secured creditor, in
the amount of $1 million.
DoveCorp also disclosed it received notice on July 10, 2007, from
Argosy that two events of default relating to financial covenants
have occurred under their loan agreement dated Aug. 29, 2006, as
amended Oct. 6, 2006 and Dec. 22, 2006.
Critical to the ongoing viability of DoveCorp was its ability to
raise debt and equity capital to fund operations until new
customers could be added to bring the plant to capacity thereby
significantly increasing cash flow. DoveCorp tried to grow the
business through acquisitions and organically through the
procurement of additional customer contacts. DoveCorp has been
adversely impacted by unforeseen difficulties in capitalizing on
certain significant opportunities together with other events
occurring within a short timeframe. Due to these difficulties,
DoveCorp is unable to reach critical capacity in the foreseeable
future. Given the current status of the business and viability of
the operations, all available alternatives are being explored in
order to maximize stakeholder value and to preserve the
possibility of some or all of the business surviving as a going-
concern operation. The Dove brand, and the brands owned by
DoveCorp, present attractive acquisition opportunities. Without
access to the additional working capital provided by way of the
DIP Facility, DoveCorp would have been unable to continue its
operations and to explore the available alternatives, including
for its market leading franchise network.
DoveCorp related that it will be amending its management
discussion and analysis for the period ended March 31, 2007, to
amend disclosure with respect to the terms of the corporately
owned franchise sales during the quarter. Corporately owned
franchise sales during the quarter totaled $1.2 million and have
terms of $200,000 cash with the balance of consideration being due
on March 15, 2008.
DoveCorp also said that its investor relations agreement with Pro-
Edge Consultants Inc. has been terminated and any enquiries should
be directed to DoveCorp directly.
About DoveCorp
DoveCorp Enterprises Inc. (CDNX:DOV.V) -- http://www.dovecorp.com/
-- is Canada's dry-cleaning and laundry services provider with the
only ISO 9001 dry cleaning registration in the world. For more
than 10 years, its flagship Dove Cleaners division has been widely
recognized by various fashion and industry magazines as among the
best premium dry cleaning and laundry services in Canada. Other
brands include Dove Depot, Meena Cleaners, and Natural Cleaners.
DoveCorp's acquisition of Cadet Cleaners, a leader in the Greater
Toronto Area for 50 years, has brought the number of DoveCorp's
retail locations to 98. In addition, Dove Cleaners Commercial is
a full-service provider of linen, uniforms, and mat rentals. The
company also provides out-sourced dry cleaning and laundry
services.
EAGLE BROADBAND: May 31 Balance Sheet Upside-Down by $5.8 Million
-----------------------------------------------------------------
Eagle Broadband Inc. had total assets of $9.7 million, total
liabilities of $15.5 million, and total stockholder' deficit of
$5.8 million at May 31, 2007.
Revenues for the fiscal quarter ended May 31, 2007, increased
slightly to $808,000 from $801,000 in the third quarter of last
year. However, gross margins improved by $126,000, cutting the
quarterly gross margin loss almost in half to 18% from 34% in the
same quarter last year.
Net loss from operations for the quarter was $7.3 million versus
$2.5 million from the same quarter last year, the majority of
which was not cash-related.
Operating expenses this quarter included an $8.7 million
impairment charge largely associated with the continued reduction
in asset valuation of the fiber infrastructure which Eagle
Broadband installed in its Houston cable communities many years
ago. Partially offsetting this non-cash charge was the
recognition of non-cash income related to derivative financial
instruments and the effect of reversing old accounts payable which
the company deemed uncollectible.
Net cash used for operating activities was up only two percent for
the third quarter at $5.1 million versus $5 million for the same
quarter a year ago. The company has continued to be successful in
raising additional financing with $2.2 million of net cash
provided by financing activities during the third quarter this
year versus only $800,000 for the same period a year ago.
A full-text copy of the company's quarterly report is available
for free at http://ResearchArchives.com/t/s?21c3
"The company continues to suffer the financial effects of
historical circumstances," said Dave Micek, president and chief
executive officer of Eagle Broadband. "However, the cash flow
aspects of our business continue to turn around, as our revenues
improve and our costs continue to fall. Additional progress on
these operating fundamentals will overtake our historical
impediments and help Eagle move closer to its goal of positive
cash flow."
Micek continued, "While Eagle continues to face extreme financial
challenges in the short term, the operating fundamentals of our
business units continue to improve. Our IT Services division is
experiencing continuing successful revenue and margin growth,
especially in its Satellite Services group. As well, our IPTV
group continues to ramp operational subscriber revenues from its
Miami customers. And, our set-top box business has now started
shipping our new IP3000HD set-top box in growing volumes to our
leading hospitality customer."
Operational Highlights
* Completed the software for our IP3000HD set-top box, thereby
transitioning from research and development to sales and
marketing for this important product.
* Signed our first large set-top box sales contract for the
IP3000HD set-top box, calling for $6.4 million in sales over
a thirteen month period to a leading hospitality integrator.
* Acquired the Satellite Services installation group from
Alliance Maintenance Services and that group produced 80%
higher than expected revenues in its first two months.
* Signed a $500,000 purchase order with Sprint for IT Services
installations at many of the nation's airports on behalf of
the Transportation Security Administration.
* Succeeded in getting our first condominium of recurring
monthly revenue IPTV subscribers fully operational, which,
in turn, began to generate IPTV revenues in Miami.
* Entered into an agreement to sell most of Eagle's fiber
infrastructure for its Houston cable communities to Optical
Entertainment Network Inc. for between $1.9 Million and
$2.7 Million.
Going Concern Doubt
LBB & Associates Ltd. LLP in Houston, Texas, expressed substantial
doubt about Eagle Broadband Inc.'s ability to continue as a going
concern after auditing the company's financial statements for the
fiscal years ended Aug. 31, 2006, and 2005. The auditing firm
pointed to the company's negative working capital, losses in 2005
and 2006, and need for additional financing necessary to support
its working capital requirements.
About Eagle Broadband
Eagle Broadband Inc. (OTC BB: EAGB) -- http://eaglebroadband.com/
-- is a technology company that develops and delivers products and
services in three core business segments: IPTV -- Eagle
Broadband's IPTVComplete(TM) provides direct access to more than
250 channels of high-demand programming from popular entertainment
providers, often using Eagle's high-definition, set-top boxes.
SatMAX(R) -- Eagle Broadband's SatMAX provides indoor/outdoor
communications utilizing the global Iridium-based satellite
communications system. It offers both fixed and mobile solutions,
including the emergency first responder SatMAX Alpha "SatMAX-in-a-
suitcase" technology.
EVRAZ OREGON: High Financial Leverage Cues Moody's B1 Rating
------------------------------------------------------------
Moody's Investors Service assigned a B1 corporate family rating to
Evraz Oregon Steel Mills, Inc. At the same time, Moody's assigned
a B1 rating to the company's proposed $1.2 billion, 7-year senior
secured term loan and a B1 probability of default rating.
Proceeds from the term loan, net of transaction costs, will be
used to refinance a portion of EOSM's existing senior unsecured
intercompany loans from its parent, Evraz Group S.A. (Ba3,
positive outlook). This is the first time Moody's has rated the
debt of EOSM since the company, formerly Oregon Steel Mills, Inc.,
redeemed all of its outstanding rated debt in July 2006, prior to
being acquired by Evraz Group S.A in January 2007. The ratings
assume that documentation for the term loan will close on the
basis indicated to Moody's. The ratings outlook is stable.
EOSM's B1 corporate family rating is weakly positioned in its
rating category reflective of its high degree of financial
leverage (including intercompany loans over 5.5x on a pro-forma
basis for LTM 3/31/2007, using Moody's standard adjustments), its
substantial interest burden relative to its earnings capacity
through a normalized business cycle, its exposure to cyclical end
markets, its modest scale, and its limited free cash flow relative
to outstanding debt. The rating also incorporates EOSM's
vulnerability to the cyclical nature of the steel industry, which
subjects it to downward pricing pressure attributable to a number
of factors, including product demand weakness, excess global
capacity and other trade factors.
Positive factors supporting the ratings acknowledge the EOSM's
strong positions in its markets served, including commodity and
specialty plate, large-diameter line pipe, specialty rod, and
rail. EOSM is also the only US plate producer in the western
United States and thus enjoys a favorable geographic niche.
Moody's believes that the company has been able to institute a
more variable cost structure into its operations since closing the
melt shop at its Portland mill in 2003; the correlation between
slab and finished goods prices should help maintain relatively
stable margins over the long term in its Oregon Steel Division.
Moody's also notes that the company is experiencing very strong
demand trends from a number of key end markets, including rail,
commercial and public construction, and energy production, which
helps bolster volumes for its high margin pipe and tubular
products. The rating also considers the importance of EOSM to the
Evraz Group, and its inclusion as a material subsidiary in the
Evraz Group $750 million guaranteed notes due 2015 documentation,
which contains cross acceleration language to payment defaults at
material subsidiaries among other things.
The stable outlook reflects Moody's view that EOSM will continue
to demonstrate solid earnings and positive cash flow generation
over the next 12 to 15 months as the fundamentals for end markets
served, particularly rail and energy, remain robust. While solid
demand trends are expected to persist over the near term, Moody's
views the current price environment as unsustainably high. As
such, the outlook also captures Moody's expectation that EOSM will
look to aggressively reduce its outstanding term loan debt with
free cash flow while pricing and volumes remain at peak levels.
EOSM operates two steel minimills with finishing facilities, four
pipe mills, and a structural tube facility, all located in the
western U.S. and Canada. The company is one of North America's
leading producers of rail, commodity and specialty plate, and
large-diameter line pipe products. Principal end markets include
steel service centers, oil & gas, construction, heavy equipment
manufacturers, and rail transportation. In 2006, the company
shipped approximately 1.6 million tons of steel products and
generated revenues of around $1.5 billion. Moody's notes that the
company's Canadian subsidiary, part of Camrose Pipe Corporation,
located in Alberta Canada, will not be a guarantor on the new
$1.2 billion senior secured term loan nor are its assets available
to provide security. However, this subsidiary represents only
approximately 10% of consolidated LTM March 31, 2007 EBITDA. This
mill primarily produces ERW and large-diameter pipe, which, while
notoriously volatile, has experienced very favorable pricing
conditions due to the strong energy demand.
The B1 rating on the senior secured term loan reflects the
application of Moody's loss given default methodology and is at
the corporate family level reflective of the support provided by
the approximately $430 million in intercompany loans from Evraz,
which is treated as subordinated debt. In addition, due to the
deficiency in the PP&E and collateral values securing the term
loan, its ratings do not receive any upward notching to the
corporate family rating.
Assignments:
Issuer: Evraz Oregon Steel Mills, Inc.
* Probability of Default Rating, Assigned B1
* Corporate Family Rating, Assigned B1
* Senior Secured Bank Credit Facility, Assigned B1, LGD 4,
54%
Evraz Group S.A. is Russia's largest vertically integrated steel
company, producing 16.1 million tons of crude steel in 2006.
Headquartered in Portland, Oregon, EOSM shipped approximately 1.6
million tons of steel products and generated revenues of
$1.5 billion in 2006.
EXPEDIA INC: Lowers Number of Shares Sought in Tender Offer
-----------------------------------------------------------
Expedia Inc. said it is amending its tender offer to purchase
shares of the company's common stock to reduce the maximum number
of shares that the company is offering to purchase to 25,000,000
shares, due to the lack of available financing, on terms
satisfactory to the company, as a result of current conditions in
the credit markets. The terms and conditions of the original
tender offer are stated in an offer to purchase, dated June 29,
2007, and related letter of transmittal.
As reported in the Troubled Company Reporter on July 3, 2007,
Expedia offered to repurchase up to 116,666,665 shares of its
common stock through a modified "Dutch auction" at a price per
share not less than $27.50 and not greater than $30.00.
Expedia currently expects to fund the purchase of shares under the
amended tender offer through available borrowing capacity under
the company's existing bank credit facility. As a result, Expedia
is further amending the tender offer to remove the financing
condition on which the original tender offer was conditioned.
"While we remain confident in Expedia's long-term prospects and
will continue to be net buyers of our shares, the terms available
to us in the current debt market environment were simply
unacceptable," said Barry Diller, Expedia Inc.'s Chairman and
Senior Executive. "Our confidence in Expedia's future is well
held, with second quarter transaction growth of 14% -- our highest
in six quarters -- and our expectation of exceeding consensus
estimates for revenue and OIBA."
Under the terms and conditions of the amended tender offer,
Expedia is offering to purchase up to 25,000,000 shares of its
common stock at a price per share not less than $27.50 and not
greater than $30.00. The 25,000,000 shares subject to the amended
tender offer represent approximately 9% of the number of shares of
common stock currently outstanding and approximately 8% of the
total number of shares of common stock and Class B common stock
currently outstanding. The tender offer will expire, unless
extended, at 5:00 p.m., New York City time, on Aug. 8, 2007.
Under the modified "Dutch auction" tender offer, stockholders may
indicate how many shares and at what price within the company's
specified range they wish to tender. Based on the number of shares
tendered and the prices specified by the tendering stockholders,
the company will determine the lowest price per share within the
range at which the company can purchase 25,000,000 shares of its
common stock or such lesser number of shares as are properly
tendered. The company will not purchase shares below a price
stipulated by a stockholder, and in some cases, may purchase
shares at prices above a stockholder's indication under the terms
of the modified "Dutch auction."
Based in Bellevue, Washington, Expedia, Inc. (NASDAQ: EXPE) --
http://www.expediainc.com/-- is an online travel company.
Expedia's companies operate internationally with sites in
Australia, Canada, France, Germany, Italy, Japan, the Netherlands,
Norway, Spain, Sweden, the United Kingdom and China, through its
investment in eLong (TM).
EXPEDIA INC: S&P Lowers Ratings and Removes Negative CreditWatch
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on online travel agency Expedia Inc. to 'BB' from 'BB+'.
S&P also lowered the rating on the company's existing senior
unsecured notes due 2018 to 'BB' from 'BB+'. The outlook is
stable. S&P removed all ratings from CreditWatch, where it placed
them with negative implications on June 19, 2007, the date at
which the company announced its initial tender offer plan.
"The downgrade and removal from CreditWatch followed Expedia's
announcement that it is reducing the size of its tender offer to
purchase its common stock because of credit market conditions that
affect financing costs," said Standard & Poor's credit analyst
Andy Liu.
Under the amended tender offer, Expedia is offering to purchase up
to 25 million shares, down from 116.7 million shares, at a price
per share of not less than $27.50 and not greater than $30. The
25 million shares represent about 8% of the total shares of common
stock outstanding.
Expedia plans to use its existing $1 billion revolving credit
facility to fund the purchase. As a result, the company is
removing the financing condition on which the original tender
offer was conditioned.
The ratings reflect the intense competitiveness of the online
travel agency market, shifting supplier dynamics, and a tolerance
for potentially high debt leverage. These factors are partially
offset by Expedia's leading market share, broad portfolio of
brands and services, and good discretionary cash flow generation.
FEDERAL-MOGUL: Earns $4 Million in Second Quarter Ended June 30
---------------------------------------------------------------
Federal-Mogul Corporation reported its financial results for the
three and six month periods ended June 30, 2007.
Federal-Mogul reported net income of $4,000,000 for the quarter
ended June 30, 2007, compared to a net loss of $17,000,000 for the
second quarter of 2006. For the six months ended June 30, 2007,
the company reported net income of $9,000,000, compared to a net
loss of $85,000,000 for the comparable period of 2006. These
results reflect an 8% increase in sales, improved gross margin and
reduced selling, general and administrative expenses.
Federal-Mogul reported net sales of $1,763,000,000 for the quarter
ended June 30, 2007, an increase of $131,000,000, or 8%, compared
to the second quarter of 2006. The most significant factors
impacting sales were increased volumes of $77,000,000 and
favorable foreign currency of $56,000,000. For the six-month
period ended June 30, 2007, net sales increased by $248,000,000 to
$3,480,000,000, of which $119,000,000 is due to increased volumes,
$51,000,000 is due to the May 2006 acquisition of Federal-Mogul
Goetze India and $116,000,000 is due to favorable foreign
currency. These favorable impacts were partially offset by
customer pricing.
Gross margin for the three and six months ended June 30, 2007,
increased by $18,000,000 and $41,000,000, respectively, over the
comparable periods of 2006. Improvements in gross margin resulted
from a combination of the October 2006 settlement of the U.K.
pension plans, productivity in excess of labor and benefits
inflation, increased volumes, and favorable foreign currency.
These favorable impacts were partially offset by increased raw
materials costs and customer pricing.
Selling, general and administrative expense for the three and six
months ended June 30, 2007, improved by $5,000,000 and
$26,000,000, respectively, when compared to the comparable periods
of 2006. Reductions in SG&A resulted from a combination of cost
reduction actions in excess of labor and benefits inflation, and
the settlement of the U.K. pension plans. These favorable impacts
were partially offset by increased SG&A from the acquisition of
FMG and adverse foreign currency.
Federal-Mogul reported income before income taxes for the three-
month period ended June 30, 2007, of $25,000,000, an improvement
of $13,000,000 over the comparable period of 2006. For the six
month period ended June 30, 2007, the company's income before
income taxes improved by $88,000,000 compared to the same period
of 2006, largely derived from the $67,000,000 of improvements in
gross margin and selling, general and administrative expenses, and
$30,000,000 in reduced impairment and restructuring charges.
Management believes that Operational EBITDA most closely
approximates the cash flow associated with the operational
earnings of the company and uses Operational EBITDA to measure the
performance of its operations. Operational EBITDA is defined to
include discontinued operations and exclude impairment charges,
Chapter 11 and U.K. Administration expenses, restructuring costs,
income tax expense, interest expense, depreciation and
amortization.
The company reported Operational EBITDA for the three and six
months ended June 30, 2007, of $212,000,000 and $412,000,000,
respectively, representing improvements of $37,000,000 and
$92,000,000, respectively, over the comparable periods of 2006.
This improvement is largely due to the improvements reported
within gross margin and reduced SG&A expenses. A reconciliation
of Operational EBITDA to the company's earnings before income
taxes for the three months ended June 30, 2007, has been provided.
Combining cash provided from operating activities with cash used
by investing activities, the company generated positive cash
inflows of $79,000,000 for the six months ended June 30, 2007,
compared with $30,000,000 for the comparable period of 2006.
"Federal-Mogul remains fully committed to exiting from Chapter 11,
while wholly dedicated to our strategy for sustainable global
profitable growth, providing our valued customers with service
excellence, quality products, leading technology and innovation at
competitive cost," said chairman, president and chief executive
officer Jose Maria Alapont. "The results achieved during the
first half of 2007 reflect the company's commitment to
consistently improve our operational performance."
About Federal-Mogul
Headquartered in Southfield, Michigan, Federal-Mogul Corporation
-- http://www.federal-mogul.com/-- is an automotive parts company
with worldwide revenue of some $6 billion. Federal-Mogul also has
operations in Mexico and the Asia Pacific Region, which includes,
Malaysia, Australia, China, India, Japan, Korea, and Thailand.
The Company filed for chapter 11 protection on Oct. 1, 2001
(Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F.
Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown &
Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl,
Young, Jones & Weintraub, P.C., represent the Debtors in their
restructuring efforts. When the Debtors filed for protection from
their creditors, they listed $10.15 billion in assets and
$8.86 billion in liabilities. Federal-Mogul Corp.'s U.K.
affiliate, Turner & Newall, is based at Dudley Hill, Bradford.
Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and
Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M.
Sutty, Esq., at The Bayard Firm represent the Official Committee
of Unsecured Creditors.
On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan.
They submitted a Disclosure Statement explaining that plan on
April 21, 2003. They submitted several amendments and on June 6,
2004, the Bankruptcy Court approved the Third Amended Disclosure
Statement for their Third Amended Plan. On July 28, 2004, the
District Court approved the Disclosure Statement. The estimation
hearing began on June 14, 2005. They then submitted a Fourth
Amended Plan and Disclosure Statement on Nov. 21, 2006, and the
Bankruptcy Court approved that Disclosure Statement on Feb. 6,
2007. The confirmation hearing on that plan began on June 18,
2007, and is expected to conclude on Oct. 1, 2007. (Federal-Mogul
Bankruptcy News, Issue No. 144; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000).
FRONTIER DRILLING: Moody's Junks Rating on Proposed $100MM Loan
---------------------------------------------------------------
Moody's Investors Service assigned a Caa1 (LGD 5; 73%) to Frontier
Drilling ASA's proposed $100 million second-lien senior secured
credit facilities and affirmed the B3 corporate family rating and
the B3 probability of default rating. Moody's also upgraded the
amended and upsized $350 million (from $315 million) existing
first-lien senior secured credit facilities to B1 (LGD 2; 28%).
The outlook remains stable.
Based on Moody's Loss Given Default model, the first-lien senior
credit facilities are rated at B1, two notches above the corporate
family rating of B3 due to the substantial amount of junior debt
present within the capital structure and the fact that the senior
credit facilities have a first lien on all of the assets of the
company. The Caa1 rating of the second lien term loan B reflects
its contractual subordination to all first lien senior secured
creditors and full guarantees of existing and future subsidiaries
of Frontier Drilling ASA.
The $350 million of first lien credit facilities consist of a
$290 million senior secured Term Loan B (upsized from $265
million), and a $60 million senior secured revolving credit
facility (upsized from $50 million). Both term loans were used to
fund the Discoverer and Deepwater upgrade projects.
Proceeds from the new and amended facilities are used to fund the
upgrading and project cost overruns for Frontier Discoverer and
Frontier Deepwater (P-II), and to pay for the maintenance of
Frontier's fleet. Both ships are committed to long term contracts
with affiliates of Royal Dutch Shell following refurbishment. The
Discoverer is currently en route to Alaska to start working for
Shell on a firm three year contract at $148,700 day rate.
Deepwater is scheduled for redeployment in July 2008 also on a
three year firm contract for Shell in West Africa at $209,270 per
day. Outlook for Frontier Drilling remains stable. The ratings
are subject to final documentation of the credit agreement.
The B3 CFR reflects Frontier's considerably higher leverage than
similarly rated oilfield services providers, especially when
incorporating the current and new non-recourse debt at affiliated
companies and the shareholder PIK subordinated notes. While the
debt at the other subsidiaries of FDR Holdings is non-recourse to
ASA and the PIK notes are subordinated to the first lien
facilities, Moody's have consolidated them for CFR purposes.
Fully consolidated debt plus shareholder subordinated PIK notes,
Frontier will have more than a $1 billion of funded debt. While
Moody's expects the family leverage to remain high at least for
the next 12 to 18 months, the B3 considers the proximity and
sources of the incremental cashflows that will accommodate the
high debt and bring the leverage profile more in line with the B3
peer group over the next 12 to 18 months. However, retention of
the B3 CFR will depend on future additional newbuilds being backed
by firm contracts with major oil and gas producers and sufficient
junior capital to support them.
The B3 also considers the ongoing risks associated with the
upgrade programs and the potential for further cost overruns
and/or delays which if experienced, could pressure liquidity and
the financial profile of the company if additional funding is
required or debt reduction is materially delayed. In addition,
the ratings reflect the company's relatively specialized use and
aged drillship fleet and the inherently volatile offshore contract
drilling markets that could affect Frontier's ability to rollover
expiring contracts at comparable dayrates especially in light of a
significant number of newly built, high specification semi-
submersible rigs and drillships which are expected to enter the
market over the next couple of years exerting pressure on the
current strong fundamentals.
The B3 Corporate Family Rating is supported by Frontier's position
as a niche provider of offshore contract drilling and production
services to the oil and gas industry with some vessels that have
Arctic drilling capabilities; the firm, long-term contracts for
the upgraded drillships with affiliates of Royal Dutch Shell
provide visible cash flows for the ensuing three years for each
contract and also appear to contain certain protections of
cashflows against cancellation; the current contracts for its two
currently operating ships with Petronas, and Petrobras, which
provide cash flows to service the debt while the upgrade of the
Deepwater is completed and the scheduled commencement of the
Discoverer this month under its contract with Shell; and the
favorable outlook for the offshore drilling market at least over
the next year which should help in supporting asset values.
The stable outlook assumes that the upgrade of the Deepwater (P-
II) vessel which is going to work under contract with Shell will
be done on time and within current budget and does not require
material additional funding ahead of cash flows. The stable
outlook also assumes the continued supportive outlook for the
offshore drilling market fundamental; and the expectation that
Frontier obtains a new contract by the end of 2007 on Frontier's
Duchess drillship beyond the current contract due to end in Q2'08,
which will in turn provide additional cash flow visibility through
the next three to four years.
The credit facilities are issued at the Frontier Drilling ASA
entity a subsidiary of the parent FDR Holdings Ltd. The credit
facilities are recourse to FDR but non-recourse to two other FDR
subsidiaries. However, in terms of use of proceeds the debt is
non-transferable to FDR or any other subsidiaries. The excess
cash flow sweep at Frontier Drilling ASA is structured that 75% of
the excess cash flow is required to pay down debt until
Debt/EBITDA falls below 2.0x, at which point the sweep falls to
50%. There are no further step downs beyond the 50% level. The
covenants are designed for rapid de-leveraging once all contracted
cashflow commence. Currently FDR is engaged on two major projects
within two other subsidiaries. Frontier Drillships Ltd. is
building the Bully, a newbuilt deepwater drillship to be completed
by the end of 2009. Frontier Driller Ltd, which owns and operates
the vessel "Frontier Driller" is another separate wholly owned
subsidiary of FDR and currently carries a non-recourse
$230 million dollar credit facility unrated by Moody's, however,
the debt and associated cashflows have been incorporated into the
B3 CFR.
Frontier Drilling ASA is incorporated in Norway, however,
maintains its administrative offices in Houston, Texas.
GATEHOUSE MEDIA: Completes Public Offering of 18.7MM Common Stock
-----------------------------------------------------------------
GateHouse Media Inc. has closed its underwritten follow-on public
offering of 18.7 million shares of its common stock, including
1.7 million shares sold pursuant to the exercise by the
underwriters of their option, at a public offering price of $18.45
per share.
The company used a portion of the net offering proceeds to repay
in full its $300 million bridge credit facility.
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
Tel (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 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 COMMERCIAL: Moody's Affirms Low-B Ratings on Six Cert. Classes
-----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 25 classes of GE
Commercial Mortgage Corporation, Commercial Mortgage Pass-Through
Certificates, Series 2005-C4 as:
* Class A-1, $21,400,139, affirmed at Aaa
* Class A-1A, $212,794,361, affirmed at Aaa
* Class A-1D, $58,791,361, affirmed at Aaa
* Class A-2, $224,800,000, affirmed at Aaa
* Class A-3A, $197,000,000, affirmed at Aaa
* Class A-3B, $25,000,000, affirmed at Aaa
* Class A-4, $775,100,000, affirmed at Aaa
* Class A-SB, $140,040,000, affirmed at Aaa
* Class A-M, $239,803,000, affirmed at Aaa
* Class A-J, $152,876,000, affirmed at Aaa
* Class X-W, Notional, affirmed at Aaa
* Class B, $23,980,000, affirmed at Aa1
* Class C, $29,975,000, affirmed at Aa2
* Class D, $23,981,000, affirmed at Aa3
* Class E, $44,963,000, affirmed at A2
* Class F, $26,978,000, affirmed at A3
* Class G, $32,973,000, affirmed at Baa1
* Class H, $23,980,000, affirmed at Baa2
* Class J, $26,978,000, affirmed at Baa3
* Class K, $11,990,000, affirmed at Ba1
* Class L, $11,990,000, affirmed at Ba2
* Class M, $8,993,000, affirmed at Ba3
* Class N, $8,993,000, affirmed at B1
* Class O, $5,995,000, affirmed at B2
* Class P, $8,992,000, affirmed at B3
As of the June 11, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 1.0%
to $2.37 billion from $2.40 billion at securitization. The
Certificates are collateralized by 166 loans, ranging in size from
less than 1.0% to 5.1% of the pool, with the top 10 loans
representing 34.7% of the pool. The pool includes two investment
grade shadow rated loans, representing 5.2% of the pool.
The pool has not realized any losses since securitization.
Currently there is one loan in special servicing. Moody's is not
anticipating any losses from this loan. Thirteen loans,
representing 8.8% of the pool, are on the master servicer's
watchlist.
Moody's was provided with partial- or full-year 2006 operating
results for 93.9% of the pool. Moody's weighted average loan to
value ratio for the conduit component is 104.4%, compared to
106.1% at securitization, resulting in an affirmation of all
classes.
The largest shadow rated loan is the Mervyn's Portfolio Loan
($106.3 million -- 4.5%), which represents a pari-passu interest
in a $258.5 million first mortgage loan secured by 35 retail
properties totaling 2.6 million square feet. The properties are
located in four states and are all 100.0% leased to Mervyn's
through March 2020. Moody's current shadow rating is Baa3, the
same as at securitization.
The second shadow rated loan is the Selden Plaza Shopping Center
Loan ($17.0 million -- 0.7%), which is secured by a 222,000 square
foot community shopping center located in Selden, New York. The
center is anchored by Waldbaums and T.J. Maxx. The in-line space
was 95.0% occupied as of March 2007, compared to 91.7% at
securitization. Moody's current shadow rating is Baa3, the same
as at securitization.
The top three conduit loans represent 12.8% of the pool. The
largest conduit loan is the 123 North Wacker Drive Loan
($122.0 million -- 5.1%), which is secured by a 541,000 square
foot Class A office building located in Chicago, Illinois. The
property was 97.0% occupied as of March 2007, the same as at
securitization. Moody's LTV is 115.1%, compared to 117.6% at
securitization.
The second largest conduit loan is the Design Center of the
Americas Loan ($92.5 million -- 3.9%), which represents a 50.0%
pari-passu interest in a 775,000 square foot design and showroom
center located in Dania Beach, Florida. The property was 89.0%
leased as of March 2007, compared to 94.0% at securitization.
Moody's LTV is 100.2%, compared to 98.1% at securitization.
The third largest conduit loan is the Fireman's Fund Loan
($88.3 million -- 3.7%), which represents a pari-passu interest in
a $186.2 million first mortgage loan secured by a 710,000 square
foot office complex located in Novato, California. The property
is 100.0% leased to Fireman's Fund Insurance Company through
November 2018. Moody's LTV is 102.8%, compared to 103.8% at
securitization.
GENERAL CABLE: Extends Senior Notes Exchange Offer to July 26
-------------------------------------------------------------
General Cable Corporation has extended its offer to the holders of
its $125 million principal amount restricted Senior Floating Rate
Notes due 2015 (CUSIP Nos. 369300AE8 and U36606AB4) and its
$200 million principal amount restricted 7.125% Senior Fixed Rate
Notes due 2017 (CUSIP Nos. 369300AF5 and U36606AC2), to exchange
such notes for a like principal amount of its 7.125% Senior Fixed
Rate Notes due 2017 and its Senior Floating Rate Notes due 2015,
all of which have been registered under the Securities Act of
1933, as amended. The exchange offer will now expire at 5:00
p.m., Eastern Standard Time, on July 26, 2007, unless further
extended by the company.
The Exchange Offer was scheduled to expire at 5:00 p.m., Eastern
Standard Time, on July 20, 2007.
This Exchange Offer was effected pursuant to the terms of a
registration rights agreement entered into by the company and
Goldman, Sachs & Co., as representative for the Holders of the
Exchange Notes, in connection with the private placement of the
Exchange Notes in March 2007.
All terms, provisions and conditions contained in the Exchange
Offer will remain in full force and effect. The exchange agent,
U.S. Bank National Association, has informed the company that as
of 5:00 p.m., New York City time, on July 20, 2007, approximately
$197.95 million in aggregate principal amount of the 7.125% Senior
Fixed Rate Exchange Notes and $125 million in aggregate principal
amount of Senior Floating Rate Exchange Notes had been tendered in
the Exchange Offer.
Headquartered in Highland Heights, Kentucky, General Cable
Corporation (NYSE: BGC) -- http://www.generalcable.com/-- makes
aluminum, copper, and fiber-optic wire and cable products. It
has three operating segments: industrial and specialty (wire and
cable products conduct electrical current for industrial and
commercial power and control applications); energy (cables used
for low-, medium- and high-voltage power distribution and power
transmission products); and communications (wire for low-voltage
signals for voice, data, video, and control applications).
Brand names include Carol and Brand Rex. It also produces power
cables, automotive wire, mining cables, and custom-designed
cables for medical equipment and other products. General Cable
has locations in China, Australia, France, Brazil, the Dominican
Republic and Spain.
* * *
As reported in the Troubled Company Reporter on March 13, 2007,
Moody's Investors Service assigned a rating of B1 to the proposed
$325 million senior unsecured notes of General Cable Corporation
consisting of $125 million of floating rate notes and $200 million
fixed rate notes. Concurrently, Moody's affirmed all other
ratings for this issuer. The rating outlook remains stable.
GREENWICH CAPITAL: Moody's Holds Low-B Ratings on 6 Cert. Classes
-----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of five classes and
affirmed the ratings of 14 classes of Greenwich Capital Commercial
Funding Corp., Commercial Mortgage Pass-Through Certificates,
Series 2003-C2 as:
* Class A-1, $55,099,966, affirmed at Aaa
* Class A-2, $269,542,000, affirmed at Aaa
* Class A-3, $460,942,000, affirmed at Aaa
* Class A-4, $565,453,000, affirmed at Aaa
* Class XC, Notional, affirmed at Aaa
* Class XP, Notional, affirmed at Aaa
* Class B, $52,075,000, affirmed at Aaa
* Class C, $21,697,000, upgraded to Aaa from Aa2
* Class D, $43,396,000, upgraded to Aa2 from A1
* Class E, $15,189,000, upgraded to Aa3 from A2
* Class F, $23,867,000, upgraded to A2 from Baa1
* Class G, $26,038,000, upgraded to Baa1 from Baa2
* Class H, $26,037,000, affirmed at Baa3
* Class J, $23,868,000, affirmed at Ba1
* Class K, $17,358,000, affirmed at Ba2
* Class L, 10,849,000, affirmed at Ba3
* Class M, $10,849,000, affirmed at B1
* Class N, $10,848,000, affirmed at B2
* Class O, $6,510,000, affirmed at B3
As of the July 9, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 3.7%
to $1.67 billion from $1.74 billion at securitization. The
Certificates are collateralized by 80 loans, ranging in size from
less than 1.0% to 7.2% of the pool, with the top 10 loans
representing 47.6% of the pool. The pool includes one shadow
rated loan, representing 7.2% of the pool. Sixteen loans,
representing 28.7% of the pool, have defeased and have been
replaced with U.S. Government securities. The pool has not
realized any losses since securitization. Three loans,
representing 0.7% of the pool, are in special servicing. Moody's
is estimating $1.8 million of losses from all of the specially
serviced loans. Eight loans, representing 8.3% of the pool, are
on the master servicer's watchlist.
Moody's was provided with full- and partial-year 2006 operating
results for 63.0% and 94.0%, respectively, of the pool. Moody's
weighted average loan to value ratio for the conduit component is
88.0%, compared to 89.7% at last review and compared to 91.2% at
securitization. Moody's is upgrading Classes C, D, E, F and G due
to defeasance and stable overall pool performance.
The shadow rated loan is the U.S. Bank Tower Loan ($120.2 million
-- 7.2%), which represents a 48.1% pari passu interest in a
$250 million first mortgage loan. There is also $10 million of
subordinate note held outside the trust. The loan is secured by a
73-story, 1.4 million square foot Class A office building located
in Los Angeles, California. The property also includes 43,000
square feet of retail space and 1,395 parking spaces. The loan
matures in July 2013 and is interest only for its entire term.
Moody's current shadow rating is Baa3, the same as at
securitization.
The top three conduit loans represent 14.6% of the pool. The
largest conduit loan is the Broadway Mall Loan ($92.9 million --
5.6%), which is secured by a 1.1 million square foot regional mall
located 27 miles east of New York City in Hicksville, New York.
Moody's LTV is 91.8%, compared to 91.7% at last review and
compared to 93.1% at securitization.
The second largest conduit loan is the Pinnacle Building Loan
($86.1 million -- 5.1%), which is secured by a 393,000 square foot
Class A office building located in Burbank, California. The loan
matures in December 2013 and is interest only for its entire term.
Moody's LTV is 75.5%, compared to 78.4% at last review and
compared to 75.5% at securitization.
The third largest conduit loan is the 150 Fifth Avenue Loan
($66.0 million -- 3.9%), which is secured by a 209,683 square foot
office building located in New York City. Moody's LTV is 95.5%,
essentially the same as at securitization.
GUNDLE/SLT: Consent Solicitation for 11% Senior Notes Expires
-------------------------------------------------------------
Gundle/SLT Environmental Inc.'s consent solicitation relating to
its outstanding 11% Senior Notes due 2012, Series B has expired
and that consents were received from holders of substantially all
of the outstanding Notes.
The company and the trustee have executed and delivered the
supplemental indenture contemplated by the consent solicitation
and the supplemental indenture has become effective and operative.
UBS Investment Bank acted as the Solicitation Agent and holders
of Notes with questions about the consent solicitation can contact
UBS' Liability Management Group at (203) 719-4210 (call collect)
or (888) 722-9555 x3374210 (toll-free).
Global Bondholder Services Corp acted as the Information Agent and
Tabulation Agent and can be contacted at (212) 430-3774 or (866)
873-6300.
About Gundle/SLT Environmental Inc.
Headquartered in Houston, Texas, Gundle/SLT Environmental Inc. --
http://www.gseworld.com/-- markets and manufactures geosynthetic
lining solutions, products and services used in the containment
and management of solids, liquids and gases for organizations
engaged in waste management, mining, water and wastewater
treatment, and aquaculture.
* * *
Standard & Poor's Ratings Services assigned B- rating on
Gundle/SLT Environmental Inc.'s long term foreign and local credit
on November 2006. The outlook is stable.
Moody's Investor Services assigned B2 on the company's long term
corporate family rating and probability of default rating on
September 2006. The outlook is stable.
IMAX CORPORATION: March 31 Balance Sheet Upside-Down by $58.7 Mil.
------------------------------------------------------------------
IMAX Corporation reported that it completed its restatement of
financial results covering 2002 through 2005, and will file its
Form 10-K for fiscal 2006 ended December 31, and Form 10-Q for the
first quarter of fiscal 2007 ended March 31.
At March 31, 2007, the company's balance sheet showed total assets
of $217.9 million, total liabilities of $276.6 million, and total
stockholders' deficit of $58.7 million.
At Dec. 31, 2006, the company had total assets of $227 million,
total liabilities of $279.2 million, and total stockholders'
deficit of $52.1 million.
Financial Results
The company recorded a net loss of $4.9 million for the first
quarter of fiscal 2007, compared to a restated net loss of
$3.7 million for the first quarter of fiscal 2006. Net loss for
the fiscal year 2006 was $16.9 million, compared to a net income
of $7.8 million for the fiscal year 2005.
For the three months ended March 31, 2007, the company's total
revenues were $27.2 million, as compared to $23.3 million reported
for the prior year period. Systems revenue was $13.1 million
versus $12.8 million in the prior year period. The company
recognized revenue on 5 theatre systems which qualified as either
sales or sales-type leases in the first quarter of 2007, compared
to 5 in 2006.
For the first quarter of 2007, film revenues were $9.1 million, as
compared to $6 million in the first quarter of 2006. This
included IMAX DMR(TM) revenues of $4.6 million, compared to
$1.1 million in 2006. Theatre operations revenue was $4.5 million
in the first quarter of 2007, compared to $3.7 million in the
first quarter of 2006.
The company's cash and short term investments position was
$27.4 million as of March 31, 2007, compared to $27.2 million as
of Dec. 31, 2006.
For the year ended Dec. 31, 2006, the company's total revenues
were $129.3 million, as compared to $135.3 million reported for
the prior year. Systems revenue was $72.1 million versus
$88.6 million in the prior year, a decrease due principally to a
reduction in settlement revenue for 2006. The company recognized
revenue on 30 theatre systems which qualified as either sales or
sales-type leases in fiscal 2006, versus 30 in 2005, as restated.
For fiscal 2006, film revenues were $36.3 million, as compared to
$26 million in fiscal 2005. This included IMAX DMR revenues of
$14.6 million, compared to $8.9 million in 2005, an increase of
65%. Theatre operations revenue decreased to $16.9 million in
2006 from $17.5 million in 2005. Other revenue was $4 million in
fiscal 2006, compared to $3.2 million in fiscal 2005.
During the fourth quarter of fiscal 2006, the company recorded a
write-down of $3.2 million related primarily to inventories,
property, plant and equipment and accounts receivable. It also
recorded a deferred tax valuation allowance of $6.2 million, which
equates to approximately $0.15 per share, during the fourth
quarter of fiscal 2006. This tax write down relates to the
company's current assessment that the ultimate utilization of
certain tax assets previously recorded on the balance sheet may
not be realized within a two-year period.
A full-text copy of the company's first quarter 2007 report is
available for free at http://ResearchArchives.com/t/s?21bc
A full-text copy of the company's fiscal 2007 report is
available for free at http://ResearchArchives.com/t/s?21bd
Management's Comments
IMAX Co-Chief Executive Officers Richard L. Gelfond and Bradley J.
Wechsler stated, "We are pleased to complete our restatement and
[file] our 10-K and 10-Q [on July 20, 2007]. In recent months we
have been working very closely with the regulators, our auditors,
counsel, Audit Committee and Board to manage this process, and are
happy to be moving ahead unencumbered by the overhang of delayed
filings. Most recently, we carefully evaluated our accounting
practices in light of comments received from the staffs of the
U.S. Securities and Exchange Commission and Ontario Securities
Commission, and, during the course of our interaction with these
regulators, decided that we should revise our accounting policy as
it relates to revenue recognition of theatre systems. The SEC and
OSC inquiries remain ongoing. As for our performance to date in
2007, we are pleased to have had 19 signings completed in the
first half of the year. In addition, our joint venture initiative
is being positively received by exhibitors due principally to the
strength of our film slate and the strong financial performance of
the JV's that have been installed to date. While the Company
navigated several challenges in fiscal 2006, we believe IMAX is
now well positioned to expand our worldwide network and generate
greater recurring revenues. Many of the events that impacted the
Company in fiscal 2006 are now behind us, and several compelling
growth opportunities lie ahead."
Joint Venture
In 2007 to date, IMAX has signed joint venture agreements for five
theatres: a two-theatre joint venture agreement with Regal Cinemas
in the first quarter and three-theatre deal with Muvico Theaters
in the second quarter. Three of those five theatres have since
opened and have experienced strong early results, and numerous
discussions are ongoing both domestically and abroad.
During the first quarter, the company signed agreements for
13 IMAX(R) theatre systems, two of which were joint venture
arrangements and three of which were subject to certain
conditions. The company recognized revenue on four theatre
systems in the first quarter and recognized one additional sale of
an existing system. The company signed agreements for six theatre
systems in the second quarter of fiscal 2007.
"We are delighted with the ongoing strength of our film slate,
which has now featured five consecutive well-received films: Happy
Feet, Night at the Museum, 300, Spider-Man 3 and last week's
release of Harry Potter and the Order of the Phoenix, with the
finale in unparalleled IMAX(R) 3D. For the last several years, we
have discussed the impact of the growing theatre network on our
film and other recurring revenues. The performance of Harry
Potter 5, as well as our other recent releases, is demonstrating
the power of the expanded network. In its first week, Harry
Potter and the Order of the Phoenix grossed $11.6 million on 126
IMAX screens, compared to a first week of $5.5 million on 75 IMAX
screens for Harry Potter and the Goblet of Fire in 2005. These
increasingly strong results not only impact our film revenues, but
also our joint venture arrangements, owned & operated theatre
performance and ongoing network royalties. We have said that the
network economics as the number of global IMAX theatres expands
are going to be increasingly impressive, and this is strong
evidence that this is already happening. With our terrific film
slate, the positive initial response to our joint venture
initiative, and the company on track to introduce our new digital
platform in late 2008 to mid-2009, we believe IMAX will see even
greater enhanced network growth, improved network economics and
increased recurring revenues going forward," concluded Messrs.
Gelfond and Wechsler.
About IMAX Corporation
Headquartered jointly in New York City and Toronto, Canada, IMAX
Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of
the world's leading entertainment technology companies, with
particular emphasis on film and digital imaging technologies
including 3D, post-production and digital projection. IMAX is a
fully-integrated, out-of-home entertainment enterprise with
activities ranging from the design, leasing, marketing,
maintenance, and operation of IMAX(R) theatre systems to film
development, production, post-production and distribution of
large-format films. IMAX also designs and manufactures cameras,
projectors and consistently commits significant funding to
ongoing research and development. IMAX has locations in
Guatemala, India, Italy, among others.
IMAX CORP: Moody's Confirms Corporate Family Rating at Caa1
-----------------------------------------------------------
Moody's Investors Service confirmed the Caa1 corporate family and
the Caa1 probability of default ratings for IMAX Corporation as
well as the Caa2 rating on its senior unsecured bonds.
The ratings confirmation follows the company's successful filing
of its Form 10-K for 2006 and its Form 10-Q for March 2007, which
cures the default and alleviates the risk of bondholder
acceleration due to the previous breach of the company's financial
reporting covenant. In addition, fundamental operating metrics
such as systems signings and film performance suggest the ability
of IMAX to manage the business and the willingness of both studios
and exhibitors to sign new contracts despite the overhang of
accounting problems.
Moody's also changed the outlook to positive from under review for
downgrade, reflecting the potential for an upgrade over the near
to intermediate term. This action concludes the review commenced
July 2.
A summary of the actions:
IMAX Corporation
* Corporate Family Rating, Confirmed at Caa1
* Probability of Default Rating, Confirmed at Caa1
* Senior Unsecured Bonds, Confirmed at Caa2, LGD 4, 59%
* Outlook, Changed To Positive From Rating Under Review
The Caa1 corporate family rating reflects the lack of visibility
regarding IMAX's long term cash flow prospects, high financial
risk, as well as execution risk related to the strategic
transition to increased use of joint ventures and the development
of the new digital system. Adequate liquidity from balance sheet
cash and its revolving credit facility, a highly enforceable
backlog of signed contracts, and the value of the IMAX brand
support the ratings.
IMAX Corporation specializes in large-format and three-dimensional
film presentation; the company typically leases or sells its
projection and sound systems, and licenses the use of its
trademarks. With annual revenue of approximately $130 million,
IMAX maintains headquarters in Mississauga, Ontario, Canada.
INFOUSA(R) INC: Commences Tender Offer for Guideline's Stock
------------------------------------------------------------
infoUSA(R) Inc. is commencing, through its wholly-owned subsidiary
Knickerbocker Acquisition Corp., a cash tender offer to purchase
all outstanding shares of capital stock of Guideline Inc. in
accordance with the merger agreement among infoUSA, Kinckerbocker
and Guideline.
Upon the successful closing of the tender offer, shareholders of
Guideline will receive $1.35 for each share of Guideline common
stock and $1.50 plus all accrued but unpaid dividends for each
share of Guideline Series A preferred stock tendered in the offer,
in cash and in each case less any required withholding taxes.
After the purchase of such shares in the tender offer, Guideline
will become a subsidiary of infoUSA.
Guideline's board of directors, upon the recommendation of the
special committee of the board of directors of Guideline, has
unanimously determined that the tender offer and the related
merger is advisable and fair to, and in the best interests of,
Guideline's shareholders and approved the tender offer, the
related merger and the related transactions.
The tender offer will expire at 12:00 midnight, New York City
time, Friday, Aug. 17, 2007, unless extended in accordance with
the merger agreement and the applicable rules and regulations of
the SEC. The tender offer will be subject to customary
conditions, including the acquisition by infoUSA of at least 66-
2/3% of Guideline's outstanding shares on a fully-diluted basis.
The tender offer statement and the related materials may be
obtained for free by directing a request to:
D.F. King & Co. Inc.
48 Wall Street
New York, NY 10005
Tel (800) 769-4414
or
infoUSA Inc.
Guideline Inc. (GDLN.OB)
5711 S. 86th Circle
Omaha NE 68127
About Guideline Inc.
Located in New York City, Guideline Inc. (OTC Bulletin Board:
GDLN) -- http://www.guideline.com/-- is the single- source
provider of customized business research and analysis. Through
its end-to-end continuum of On-Demand Business Research, Custom
Market Research, Strategic Intelligence, and Product Development
Intelligence. Guideline's research analysts create integrated
solutions that enable clients to make informed decisions to
address their critical business needs. Guideline specializes in
nearly all major industries, including media and entertainment,
healthcare and pharmaceuticals, financial and business services
and consumer products.
About infoUSA Inc.
Based in Omaha, Nebraska, infoUSA, Inc. (NASDAQ:IUSA) --
http://www.infoUSA.com/, http://www.salesgenie.com/-- is a
provider of business and consumer databases for sales leads &
mailing lists, database marketing services, data processing
services and sales and marketing solutions. InfoUSA is the only
company to own 12 proprietary databases under one roof. The
infoUSA database powers the directory services of the top Internet
traffic-generating sites. Nearly 4 million customers use
infoUSA's products and services to find new customers, grow their
sales, and for other direct marketing, telemarketing, customer
analysis and credit reference purposes.
* * *
As reported in the Troubled Company Reporter on May 1, 2007,
Standard & Poor's Ratings Services assigned its loan and recovery
ratings to infoUSA Inc.'s senior secured term loan B due 2012,
following an increase in the existing loan to $175 million from
$100 million. The loan rating is 'BB' and the recovery rating is
'3', reflecting the expectation for a meaningful (50%-80%)
recovery of principal in the event of a payment default.
INTERNATIONAL COAL: Moody's Junks Corporate Family Rating
---------------------------------------------------------
Moody's Investors Service lowered International Coal Group Inc.'s
corporate family rating to Caa1 from B2, its senior secured rating
to B1 (LGD2, 13%) from Ba3, its senior unsecured rating to Caa2
(LGD4, 67%) from Caa1 and its speculative grade liquidity rating
to SGL-4 (from SGL-3). The rating outlook is stable.
The rating downgrades were prompted by ICG's ongoing operating and
geologic challenges that may continue to result in production
underperformance, which in combination with high input and capex
costs will contribute to ongoing poor earnings and negative free
cash flow. As a result, ICG is likely to have higher debt levels,
difficulty in meeting covenant targets and a weak liquidity
position.
Ratings downgraded are:
* Corporate Family Rating, to Caa1 from B2
* Probability of Default Rating, to Caa1 from B2
* $325 million Gtd. Sr. Secured Revolving Facility due June
2011, to B1 from Ba3 (LGD2, 13%)
* $175 million 10.25% Gtd. Sr. Unsecured Notes due 2014, to
Caa2 from Caa1 (LGD4, 67%)
* Speculative Grade Liquidity Rating, to SGL-4 from SGL-3
The last rating action on ICG was to raise to Ba3 from B1 the
senior secured rating and to lower to Caa1 from B3 the senior
unsecured rating in accordance with Moody's LGD methodology in
September 2006.
International Coal Group, headquartered in Scott Depot, West
Virginia, is engaged in the mining and marketing of coal, and had
revenues in the fiscal year ended December 31, 2006 of $892
million.
J.CREW GROUP: David House Elected to Board of Directors
-------------------------------------------------------
J.Crew Group Inc. ha appointed David House to its board of
directors, effective July 25, 2007, and will serve on its audit
committee.
Mr. House, 57, was at American Express Company from 1993 to 2006,
where he served as group president of the global network,
establishment services, travelers cheques and prepaid services
businesses.
"We are pleased to welcome David to our Board," Millard Drexler,
J.Crew's chairman and CEO said. "When it comes to building long-
term customer relationships, David is an expert. His
accomplishments and success in a variety of business environments
make him especially well-suited for our board of directors."
Headquartered in New York City, J. Crew Group Inc. (NYSE: JCG) --
http://www.jcrew.com/-- is a multi-channel retailer of women's
and men's apparel, shoes and accessories. As of March 13, 2007,
the company operates 178 retail stores, the J. Crew catalog
business, jcrew.com, and 51 factory outlet stores.
* * *
As reported in the Troubled Company Reporter on March 27, 2007,
Standard & Poor's Ratings Services revised its outlook on
specialty apparel retailer J. Crew Group Inc. to positive from
stable. The 'B+' corporate credit rating was affirmed.
JP MORGAN: Moody's Affirms B3 Rating on $3.4 Mil. Class P Certs.
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of eight classes
and affirmed the ratings of 16 classes of J.P. Morgan Chase
Commercial Mortgage Securities Corp., Commercial Mortgage Pass-
Through Certificates, Series 2003-CIBC7 as:
* Class A-1, $8,813,241, affirmed at Aaa
* Class A-1A, $358,951,520, affirmed at Aaa
* Class A-2, $150,000,000, affirmed at Aaa
* Class A-3, $191,758,000, affirmed at Aaa
* Class A-4, $390,000,000, affirmed at Aaa
* Class X-1, Notional, affirmed at Aaa
* Class X-2, Notional, affirmed at Aaa
* Class B, $34,689,000, upgraded to Aaa from Aa2
* Class C, $13,875,000, upgraded to Aaa from Aa3
* Class D, $27,751,000, upgraded to Aa3 from A2
* Class E, $15,610,000, upgraded to A2 from A3
* Class F, $17,345,000, affirmed at Baa1
* Class G, $10,407,000, affirmed at Baa2
* Class H, $19,078,000, affirmed at Baa3
* Class J, $5,204,000, affirmed at Ba1
* Class K, $5,203,000, affirmed at Ba2
* Class L, $8,672,000, affirmed at Ba3
* Class M, $8,673,000, affirmed at B1
* Class N, $3,469,000, affirmed at B2
* Class P, $3,468,000, affirmed at B3
* Class FS-1, $13,082,802, upgraded to Aa1 from Aa2
* Class FS-2, $12,985,169, upgraded to Aa2 from Aa3
* Class FS-3, $12,887,536, upgraded to Aa3 from A1
* Class FS-4, $44,032,416, upgraded to A2 from A3
As of the July 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 6.7%
to $1.37 billion from $1.47 billion at securitization. The
certificates are collateralized by 179 mortgage loans ranging in
size from less than 1.0% to 11.7% of the pool, with the top 10
loans representing 36.4% of the pool. The pool includes three
shadow rated loans, representing 19.0% of the pool. Fifteen
loans, representing 15.5% of the pool, have defeased and are
secured by U.S. Government securities.
One loan has been liquidated from the pool resulting in a realized
loss of approximately $2.4 million. Two loans, representing 1.3%
of the pool, are currently in special servicing. Moody's
estimates an aggregate loss of approximately $5.8 million for
these specially serviced loans. Twenty-five loans, representing
29.3% of the pool, are on the master servicer's watchlist.
Moody's was provided with year-end 2006 operating results for
91.1% of the performing loans. Moody's loan to value ratio for
the conduit component is 83.1%, compared to 88.4% at Moody's last
full review in August 2005 and compared to 87.6% at
securitization. Moody's is upgrading Classes B, C, D and E due to
increased subordination levels, defeasance and overall improved
pool performance. Moody's is upgrading Classes FS-1, FS-2, FS-3
and FS-4 due to the improved performance of the Forum Shops Loan,
discussed below.
The largest shadow rated loan is the Forum Shops Loan
($151.3 million -- 11.7%), which represents a participation
interest in a $454.6 million first mortgage loan secured by a
637,000 square foot retail center located in Las Vegas, Nevada.
The property is also encumbered by an $83.1 million B Note which
secures non-pooled Classes FS-1, FS-2, FS-3 and FS-4. The center
was 98.2% occupied as of March 2007, compared to 97.0% at last
review. Comparable sales for tenants less than 10,000 square feet
were $1,500 per square foot for calendar year 2006, compared to
$1,234 per square foot for calendar year 2005. Financial
performance has improved due to increased rental income and loan
amortization. Moody's current shadow ratings for the
participation interest and B Note are Aaa and A2, respectively,
compared to Aa1 and A3 at Moody's last review of this loan in
December 2006.
The second shadow rated loan is the One Post Office Square Loan
($58.7 million -- 4.5%), which represents a participation interest
in a $117.5 million first mortgage loan secured by a 766,000
square foot Class A office building located in Boston,
Massachusetts. The property was 99.9% occupied as of June 2006,
compared to 80.0% at last review. Moody's current shadow rating
is Aa3, the same as at last review.
The third shadow rated loan is the Brown Noltemeyer Portfolio Loan
($35.5 million -- 2.8%), which consists of five cross
collateralized and cross defaulted loans secured by eight
multifamily properties. The properties total 2,087 units and are
all located in Louisville, Kentucky. The loan is structured with
a 17-year amortization schedule and has amortized by approximately
13.9% since securitization. Moody's current shadow rating is Aa2,
compared to Aa3 at last review.
The top three non-defeased conduit loans represent 11.7% of the
outstanding pool balance. The largest conduit loan is the
Hometown America Portfolio III Loan ($61.7 million -- 4.8%), which
is secured by five manufactured housing communities. The
properties are located in four states and contain a total of 1,953
pads. The portfolio was 85.3% occupied as of March 2007, compared
to 91.1% at last review and compared to 95.5% at securitization.
Moody's LTV is 94.3%, compared to 90.2% at last review.
The second largest conduit loan is the Potomac Run Loan
($44.8 million -- 3.5%), which is secured by a 362,000 square foot
community shopping center located in Sterling, Virginia. The
center was 100.0% occupied as of December 2006, compared to 98.9%
at securitization. Moody's LTV is 92.6%, compared to 96.5% at
last review.
The third largest conduit loan is the Colony Cove Loan
($44.4 million -- 3.4%), which is secured by a 2,210-pad mobile
home park located approximately 40 miles south of Tampa in
Ellenton, Florida. The property was 95.9% occupied as of March
2007, compared to 98.0% at last review. The loan was structured
with a 20-year amortization schedule, and has amortized by
approximately 10.9% since securitization. Moody's LTV is 63.4%,
compared to 70.7% at last review.
JP MORGAN: Moody's Affirms Rating on $1.3MM Class N Certs. at B3
----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of 10 classes and
affirmed the ratings of 12 classes of J.P. Morgan Chase Commercial
Mortgage Securities Corp., Commercial Mortgage Pass-Through
Certificates, Series 2003-CIBC6 as:
- Class A-1, $148,543,397, affirmed at Aaa
- Class A-2, $653,188,000, affirmed at Aaa
- Class X-1, Notional, affirmed at Aaa
- Class X-2, Notional, affirmed at Aaa
- Class B, $31,189,000, affirmed at Aaa
- Class C, $32,488,000, upgraded to Aa2 from A1
- Class D, $11,696,000, upgraded to A1 from A3
- Class E, $14,295,000, upgraded to A3 from Baa1
- Class F, $10,396,000, upgraded to Baa1 from Baa2
- Class G, $12,996,000, affirmed at Baa3
- Class H, $15,594,000, affirmed at Ba1
- Class J, $5,198,000, affirmed at Ba2
- Class K, $7,797,000, affirmed at Ba3
- Class L, $5,198,000, affirmed at B1
- Class M, $3,899,000, affirmed at B2
- Class N, $1,300,000, affirmed at B3
- Class AC-1, $1,873,834, upgraded to Aaa from Baa1
- Class AC-2, $2,810,752, upgraded to Aaa from Baa2
- Class AC-3, $2,810,752, upgraded to Aaa from Baa3
- Class BM-1, $3,875,614, upgraded to Aa2 from Aa3
- Class BM-2, $6,297,873, upgraded to A1 from A2
- Class BM-3, $4,360,066, upgraded to A2 from A3
As of the July 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 6.5%
to $993.9 million from $1.06 billion at securitization. The
Certificates are collateralized by 128 loans, ranging in size from
less than 1.0% to 8.5% of the pool, with the top 10 loans
representing 35.5% of the pool. The pool's largest loan is shadow
rated investment grade. Twelve loans, representing 18.1% of the
pool, have defeased and are collateralized by U.S. Government
securities.
One loan has been liquidated from the trust resulting in a minimal
loss. Currently there are no loans in special servicing. Thirty
five loans, representing 20.0% of the pool, are on the master
servicer's watchlist.
Moody's was provided with year-end 2006 operating results for
85.8% of the pool. Moody's weighted average loan to value ratio
for the conduit component is 85.2%, compared to 88.8% at Moody's
last full review in April 2006 and compared to 89.6% at
securitization. Moody's is upgrading Classes C, D, E and F due to
improved overall pool performance, defeasance and increased credit
support. Moody's is upgrading Classes AC-1, AC-2 and AC-3 due to
the defeasance of the One Alliance Center Loan. Moody's is
upgrading Classes BM-1, BM-2 and BM-3 due to the improved
performance of the Battlefield Mall Loan
The shadow rated loan is the Battlefield Mall Loan ($82.5 million
- 8.5%), which represents the senior component of a $97.0 million
mortgage loan secured by a 1.2 million square foot regional mall
located in Springfield, Missouri. The property is also encumbered
by a $14.5 million subordinate note which is the security for the
non-pooled Classes BM-1, BM-2 and BM-3. The mall is anchored by
J.C. Penney, two Dillard's stores, Sears and Macy's. Moody's
current shadow rating of the senior loan and subordinate note are
Aa1 and A2, respectively, compared to Aa2 and A3 at last review.
The top three non-defeased conduit loans represent 9.1% of the
pool. The largest conduit loan is the International Paper Center
Loan ($33.2 million - 3.4%), which is secured by a leasehold
interest in a 214,000 square foot Class A office building located
in Memphis, Tennessee. The property is 100.0% leased to the
International Paper Company through April 2017. Moody's LTV is
87.3%, compared to 90.8% at last review.
The second largest conduit loan is the Shelbyville Road Plaza Loan
($27.8 million - 2.9%), which is secured by a 250,000 square foot
community shopping center located in Louisville, Kentucky. The
property was 92.6% occupied as of December 2006, compared to
100.0% at last review. The loan is structured with an 18-year
amortization schedule and has amortized by approximately 10.8%
since securitization. Moody's LTV is 76.8%, compared to 82.2% at
last review.
The third largest conduit loan is the 641 Sixth Avenue Loan
($27.4 million - 2.8%), which is secured by a 158,000 square foot
office building located in New York City. The property was 100%
leased as of December 2006. Moody's LTV is 93.1%, essentially the
same as at last review.
LAKELAND MILLS: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Lakeland Mills, Inc.
One Lakeland Place
Edmore, MI 48829
Bankruptcy Case No.: 07-05227
Type of business: The Debtor sells patio & lawn furniture.
See http://www.lakelandmills.com
Chapter 11 Petition Date: July 20, 2007
Court: Western District of Michigan (Grand Rapids)
Judge: James D. Gregg
Debtor's Counsel: Harold E. Nelson, Esq.
Nantz, Litowich, Smith & Girard
2025 East Beltline Southeast, Suite 600
Grand Rapids, MI 49546
Tel: (616) 977-0077
Fax: (616) 977-0529
Total Assets: $0
Total Debts: $1,612,231
Debtor's Twelve Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Con-Way Central Express freight $6,158
P.O. Box 5160
Portland, OR 97208-5160
Reed Business Information $3,400
225 Wyman Street
Waltham, MA 02451
Old Dominion Freight Line freight $2,793
P.O. Box 60908
Charlotte, NC 28260-0908
Dayton Freight, Inc. freight $2,660
Alvan Motor Freight, Inc. freight $2,558
Manpower of Hastings labor $1,458
Yellow Freight freight $1,394
Vitran Express freight $1,155
A.B.F. Freight freight $821
Mid States Express, Inc. freight $816
RoadwayExpress freight $213
Gratiot County Herald advertising $50
LEHMAN BROTHERS: Moody's Rates $3.7 Mil. Class B Certs. at Ba1
--------------------------------------------------------------
Moody's Investors Service has assigned ratings of Aaa through Ba1
to thirteen classes of certificates of the Lehman Brothers Small
Balance Commercial Mortgage Pass-Through Certificates, Series
2007-2 transaction. The securitized pool consists of conventional
small business loans originated primarily by Lehman Brothers Small
Business Finance division of Lehman Brothers Bank, a subsidiary of
Lehman Brothers, Inc. A portion of the pool consists of small
balance commercial loans originated by GreenPoint Mortgage
Funding, Inc. All of the loans will be serviced by SBF. The
complete rating action is as:
Issuer: Lehman Brothers Small Balance Commercial Mortgage Trust
2007-2
* $31.840 million Class 1A1 Variable Rate Senior Certificates,
rated Aaa
* $53.554 million Class 1A2 Variable Rate Senior Certificates,
rated Aaa
* $48.545 million Class 1A3 Variable Rate Senior Certificates,
rated Aaa
* $35.000 million Class 1A4 Variable Rate Senior Certificates,
rated Aaa
* $87.322 million Class 2A1 Fixed Rate Senior Certificates,
rated Aaa
* $77.659 million Class 2A2 Fixed Rate Senior Certificates,
rated Aaa
* $101.657 million Class 2A3 Fixed Rate Senior Certificates,
rated Aaa
* $16.271 million Class M1 Variable Rate Subordinate
Certificates, rated Aa2
* $15.020 million Class M2 Variable Rate Subordinate
Certificates, rated A1
* $12.517 million Class M3 Variable Rate Subordinate
Certificates, rated A3
* $11.264 million Class M4 Variable Rate Subordinate
Certificates, rated Baa2
* $6.259 million Class M5 Variable Rate Subordinate
Certificates, rated Baa3
* $3.755 million Class B Variable Rate Subordinate Certificates,
rated Ba1
The ratings are based on the quality of the underlying loan pool,
consisting of loans to small businesses and investors secured by
first liens on commercial real estate; subordination ranging from
13.0% to 0.75%; excess interest; a reserve account funded at
closing in the amount of 1.0% of the initial pool balance;
additional structural features; the integrity of the transaction's
legal structure; plus the strength and experience of servicer SBF.
The notes were sold in privately negotiated transactions without
registration under the Securities Act of 1933. The issuance has
been designed to permit resale under Rule 144A.
LENNOX INT'L: Board Declares Quarterly Cash Dividend due Sept. 11
-----------------------------------------------------------------
The board of directors of Lennox International Inc. declared a
quarterly cash dividend of $0.13 per share of common stock payable
on Sept. 11, 2007, to stockholders of record as of Aug. 24, 2007.
Based in Richardson, Texas, Lennox International, Inc. (NYSE: LII)
-- http://www.lennoxinternational.com/-- manufactures and markets
a broad range of products for heating, ventilation, air
conditioning, and refrigeration (HVACR) markets, including
residential and commercial air conditioners, heat pumps, heating
and cooling systems, furnaces, prefabricated fireplaces, chillers,
condensing units, and coolers. Lennox has solid positions in its
equipment markets, with well-established brand names, well as
products spanning all price points.
* * *
Moody's Investors Service's assigned 'Ba2' on Lennox
International, Inc.'s LT Corporate Family rating and Probability
of Default. The outlook is positive.
Standard & Poor's assigned 'BB-' on its LT foreign and Local
Issuer Credit rating.
LIFEPOINT HOSPITALS: Net Income Down to $13.4MM in 2nd Qtr. 2007
----------------------------------------------------------------
LifePoint Hospitals Inc. had net income for the second quarter
ended June 30, 2007, of $13.4 million, compared with net income of
$34.8 million, for the prior-year period. Revenues for the
quarter were $654.3 million, up 16.8%, from $560.2 million for the
same period a year ago. Income from continuing operations for the
quarter was $24.6 million, compared with income from continuing
operations for the second quarter of 2006 of $37.2 million.
For the first half of 2007, net income decreased 40.8% to
$43.2 million. Net income for the first half of 2006 was
$72.9 million. Revenues for the first half of 2007 were
$1.3 billion, up 15.3% from $1.1 billion for the first half of
2006. Income from continuing operations for the six months ended
June 30, 2007, decreased 12.6% to $63.3 million, compared with
income from continuing operations for the six months ended June
30, 2006, of $72.4 million.
As a result of its sale on July 1, 2007, Coastal Carolina Medical
Center, a 41-bed acute care hospital in Hardeeville, South
Carolina, has been reflected as discontinued operations. During
the three months and six months ended June 30, 2007, the company
recognized impairment charges of $8.5 million and $16.4 million,
net of income taxes, respectively, related to the disposal plans
for Coastal Carolina Medical Center and for Colorado River Medical
Center in Needles, California, which was identified as
discontinued operations during the first quarter of 2007.
At June 30, 2007, the company had total assets of $3.6 billion,
total liabilities of $2.1 billion, and total stockholders' equity
of $1.5 billion.
The company held cash and cash equivalents of $13.4 million at
June 30, 2007, and $12.2 million at Dec. 31, 2006.
Management's Comments
In commenting on the results, William F. Carpenter III, president
and chief executive officer of LifePoint Hospitals, said, "While
we are not satisfied with our second quarter performance, a
significant portion of our results are primarily driven by three
areas - bad debt, contract labor costs and professional fees, and
medical malpractice insurance expense - and we are taking
appropriate actions to address these issues. Our entire industry
continues to face strong headwinds in these areas, and some of
them impacted us more significantly in this quarter than in past
quarters.
"As we continue to implement our short- and long-term initiatives
designed to deliver sustainable growth, we remain keenly focused
on expense management. We have a solid team in place with the
skills and expertise needed to continue executing our strategy.
We are confident that by investing in and working closely with the
communities in which we operate, we will be able to provide the
highest quality care for our patients and at the same time drive
enhanced value for our shareholders. We are confident in the
future success of our business and our ability to grow and provide
quality patient care at reasonable prices."
About LifePoint Hospitals
Based in Brentwood, Tennessee, LifePoint Hospitals, Inc. (NASDAQ:
LPNT) -- http://www.lifepointhospitals.com/-- is a hospital
company focused on providing healthcare services in non-urban
communities in 18 states. Of the company's 49 hospitals, 46 are
in communities where LifePoint Hospitals is the sole community
hospital provider. LifePoint Hospitals' non-urban operating
strategy offers continued operational improvement by focusing on
its five core values: delivering compassionate, high quality
patient care; supporting physicians; creating an outstanding
environment for employees; providing unmatched community value;
and ensuring fiscal responsibility. Headquartered in Brentwood,
Tennessee, LifePoint Hospitals is affiliated with approximately
21,000 employees.
* * *
As reported in the Troubled Company Reporter on May 25, 2007,
Standard & Poor's Ratings Services assigned its 'B' rating to
LifePoint Hospitals Inc.'s $500 million senior subordinated
convertible notes due 2014.
LORUS THERAPEUTICS: Herbert Abramson Appointed to Board
-------------------------------------------------------
Lorus Therapeutics Inc. has appointed Herbert Abramson to its
board of directors.
Mr. Abramson has been in the investment industry for 25 years
managing portfolios for high net worth individuals. He is a co-
founder, chairman and CEO of Trapeze Capital Corp., an investment
dealer and portfolio management company and is also chairman of
Trapeze Asset Management Inc., an affiliated investment counseling
company, which together have over $1.6 billion under
administration.
Mr. Abramson is a member of the Law Society of Upper Canada and
practiced corporate/securities law for 12 years before going into
the investment business. He is also currently chairman and
director of St. Andrew Goldfields Ltd.
"We are delighted to welcome Mr. Abramson to our Board," said Dr.
Aiping Young, president and CEO of Lorus. "We believe Lorus will
benefit from his investment management and capital markets
experience".
About Lorus Therapeutics
Based in Toronto, Ontario, Lorus Therapeutics Inc. (TSX:
LOR)(AMEX: LRP) -- http://www.lorusthera.com/-- is a publicly
traded biopharmaceutical company focused on the research and
development of novel therapeutics in cancer. The company's goal
is to capitalize on its research, pre-clinical, clinical and
regulatory expertise by developing new drug candidates that can be
used, either alone, or in combination with other drugs, to
successfully manage cancer. Through its own discovery efforts and
an acquisition and in-licensing program, Lorus is building a
portfolio of promising anticancer drugs. The company has several
product candidates in multiple Phase II clinical trials and has
completed one Phase II and one Phase III clinical trial.
* * *
As reported in the Troubled Company Reporter on May 3, 2007, Lorus
Therapeutics has signed an agreement with 6707157 Canada Inc. and
its affiliate to recapitalize and reorganize its business which,
if completed, will result in the addition of approximately
$7.8
million in non-dilutive financing for the company. If the
transaction is completed, the funds will be used to further
advance the company's product pipeline without diluting the equity
interest of its shareholders.
The restructuring will be completed by way of a Plan of
Arrangement and is subject to approval by the Ontario Superior
Court of Justice and Lorus' security holders in accordance with
applicable laws. The transaction is also subject to regulatory
approval, including approval of the TSX and AMEX.
LOTS WAKO: Case Summary & 19 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Lots Wako, Inc.
345 Queen Street, Suite 507
Honolulu, HI 96813
Tel: (808) 535-1586
Bankruptcy Case No.: 07-00741
Chapter 11 Petition Date: July 23, 2007
Court: District of Hawaii (Honolulu)
Debtor's Counsel: Jerrold K. Guben, Esq.
Reinwald O'Connor & Playdon
733 Bishop Street, Florida 24
Honolulu, HI 96813
Tel: (808) 524-8350
Fax: (808) 531-8628
Estimated Assets: $10,000 to $100,000
Estimated Debts: $1 Million to $100 Million
Debtor's List of its 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
UFJ Bank Pending Litigation $10,500,000
[no address provided]
Sakai Iwanaga Sutton City $53,000
Financial Tower, Suite 2307
201 Merchant Street
Honolulu, HI 96813
Centurion Insurance Agency $32,214
1585 Kapiolani Boulevard
Suite 1010
Honolulu, HI 96814
Hawaiian Electric Co. Utility $17,633
State Tax Collector $5,800
GMK Consulting LLC $4,516
Yasunori T. Fujiwara $4,516
CB Richard Ellis $4,016
Bankcard Center $1,500
Thyssenkrup Elevator $1,250
Mercedes-Benz Credit $918
Board of Water Supply Utility $767
GMI $716
Johnson Controls, Inc. $479
Freeman Guards, Inc. $460
Northstar Building Maintenance $403
Landscape Hawaii Inc. $376
HECO $307
Board of Water Supply $307
MERRILL LYNCH: Moody's Holds B3 Rating on Class L Certificates
--------------------------------------------------------------
Moody's Investors Service affirmed the ratings of 15 classes of
Merrill Lynch Financial Assets Inc., Commercial Mortgage Pass-
Through Certificates, Series 2005-Canada 17 as:
* Class A-1, $219,223,648, affirmed at Aaa
* Class A-2, $217,826,000, affirmed at Aaa
* Class B, $9,554,000, affirmed at Aa2
* Class C, $10,760,000, affirmed at A2
* Class D, $10,961,000, affirmed at Baa2
* Class E, $1,156,000, affirmed at Baa3
* Class F, $3,721,000, affirmed at Ba1
* Class G, $3,872,000, affirmed at Ba2
* Class H, $955,000, affirmed at Ba3
* Class J, $1,006,000, affirmed at B1
* Class K, $1,056,000, affirmed at B2
* Class L, $1,005,000, affirmed at B3
* Class XP-1, Notional, affirmed at Aaa
* Class XP-2, Notional, affirmed at Aaa
* Class XC, Notional, affirmed at Aaa
As of the June 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 2.8%
to $488.8 million from $502.8 million at securitization. The
Certificates are collateralized by 50 loans, ranging in size from
less than 1.0% to 15.0% of the pool, with the top 10 loans
representing 65.7% of the pool. Although the pool is
concentrated, there are numerous loans which include multi-
property portfolios. The pool includes two investment grade
shadow rated loans, representing 10.1% of the pool. One loan,
representing 0.4% of the pool, is in special servicing. Moody's
is not estimating losses from this loan currently. No loans have
been liquidated from the trust. One loan, representing 1.0% of
the pool, defeased and has been replaced with Canadian Government
securities. Three loans, representing 3.8% of the pool, are on
the master servicer's watchlist.
Moody's was provided with full-year 2006 operating results for
89.4%, of the pool. Moody's weighted average loan to value ratio
for the conduit component is 86.0%, essentially the same as at
securitization.
The largest shadow rated loan is the College Square Loan
($25.5 million -- 6.1%), which is secured by a 386,210 square foot
anchored retail centre located in Ottawa, Ontario. Moody's
current shadow rating is Aaa, the same as at securitization.
The second largest shadow rated loan is the InnVest CMBS Portfolio
II Loan ($24.1 million -- 5.6%), which is secured by 10 limited
service hotels totaling 781 rooms, located in Quebec, Ontario, New
Brunswick, and Nova Scotia. The loan amortizes on a 300-month
schedule. The loan has improved due to loan amortization and an
increase in room revenue. Moody's current shadow rating is Aa3,
compared to A2 at securitization.
The top three conduit loans represent 35.4% of the pool. The
largest conduit loan is the TransGlobe Portfolio Loan
($73.4 million -- 16.9%), which is secured by 28 multifamily
properties containing a total of 2,491 units located across
Ontario (19) and Nova Scotia (9). Moody's LTV is 95.8%,
essentially the same as at securitization.
The second largest conduit loan is the Redbourne Office Portfolio
Loan ($56.5 million -- 13.0%), which is secured by 10 office
buildings totaling 710,498 square feet located in the province of
Quebec, Canada. Loan performance has improved due to increased
occupancy, increased rent and loan amortization. Moody's LTV is
73.4%, compared to 84.2% at securitization.
The third largest conduit loan is the Technoparc Portfolio Loan
($43.3 million -- 10.0%), which is secured by 13 office buildings
totaling 323,373 square feet located in the Technoparc submarket
of Saint-Laurent, Quebec. Moody's LTV is 81.0%, compared to 83.3%
at securitization.
MORGAN STANLEY: Fitch Holds Low-B Ratings on 6 Certificate Classes
------------------------------------------------------------------
Fitch Ratings affirms Morgan Stanley Capital I Trust's commercial
mortgage pass-through certificates, series 2004-HQ4, as:
-- $24.3 million class A-2 at 'AAA';
-- $50 million class A-3 at 'AAA';
-- $72 million class A-4 at 'AAA';
-- $123 million class A-5 at 'AAA';
-- $120 million class A-6 at 'AAA';
-- $776 million class A-7 at 'AAA';
-- Interest-only class X-1 at 'AAA';
-- Interest-only class X-2 at 'AAA';
-- $15 million class B at 'AA+';
-- $18 million class C at 'AA';
-- $13.7 million class D at 'AA-';
-- $24 million class E at 'A';
-- $10.3 million class F at 'A-';
-- $12 million class G at 'BBB+';
-- $12 million class H at 'BBB';
-- $15.4 million class J at 'BBB-';
-- $5.1 million class K at 'BB+';
-- $5.1 million class L at 'BB';
-- $5.1 million class M at 'BB-';
-- $1.7 million class N at 'B+';
-- $3.4 million class 0 at 'B';
-- $3.4 million class P at 'B-'.
Fitch does not rate the $15.4 million class Q certificates. Class
A-1 has paid in full.
The rating affirmations reflect the stable pool performance and
limited paydown since issuance. As of the July 2007 distribution
date, the pool has paid down 3.2% to $1.33 billion from $1.37
billion at issuance. In addition, three loans (2%) have defeased.
There are currently no delinquent or specially serviced loans in
the transaction.
Four loans maintain investment grade credit assessments: Bank of
America Plaza (14.3%), Wells REF Portfolio (9.4%), Eastview Mall
(7.5%), and the Mall at Millenia (4.3%). Each loan has seen
stable to improved performance since issuance. Occupancy as of
year-end 2006 for the four loans were 96%, 100%, 94% and 97%
respectively.
MOTION PICTURE: Moody's Rates First Lien Credit Facilities at Ba3
-----------------------------------------------------------------
Moody's Investors Service rated Motion Picture Distribution
Finco's first lien credit facilities Ba3. At the same time, the
company's second lien credit facilities were rated B3. The
company was assigned a B2 corporate family rating. The rating
outlook is stable. First lien credit facilities consist of a
CDN $50 million 6-year secured revolving term loan and a
CDN $260 million 7.5-year secured term loan B. Second lien
facilities are comprised of a C$100 million 8-year secured term
loan that is due in a single payment at maturity.
Assignments:
Issuer: Motion Picture Distribution Finco
* Corporate Family Rating, Assigned B2
* Senior Secured Bank Credit Facility, Assigned Ba3
* Second Lien Term Loan, Assigned B3
MPD has a relatively strong business profile. This is a function
of its substantial market share, proportionate scale, and
established relationships with both content providers and
exhibitors. However, these strengths have been exploited by way
of an aggressive debt structure. Opening leverage approximates
5.8x LTM adjusted EBITDA, some 67% of the enterprise value. De-
levering depends on maintaining cash flow expansion that is
expected in the second half of 2007. This is by no means assured.
In addition, the business faces several near term risks as key
content acquisition contracts come up for renewal late in each of
2007 and 2008. Failure to renew the contracts would cause new
release volumes to decline, which would be followed by cash flow
declines. Given the limited roster of appropriate motion picture
production studios that could act as suitable alternatives,
replacing a lost contract may prove to be quite difficult. While
the long cash flow tail related to motion picture distribution
likely implies that cash flow would decline only gradually upon
the content pipeline shrinking, de-levering capability would be
much diminished in this circumstance.
All credit facilities benefit from upstream guarantees of key
subsidiary companies. The guarantees are, in turn, supported by
asset pledges that convey security and negate any potential
structural subordination by way of debt at operating companies.
The first lien facilities are rated Ba3, two notches above the
company's B2 CFR. The second lien facility is rated one notch
below the B2 CFR at B3.
Headquartered in Toronto, Ontario, Canada, Motion Picture
Distribution Finco is a single purpose company formed to hold the
motion picture distribution business currently owned by Movie
Distribution Income Fund. This is the largest independent
distributor of motion pictures in Canada and has operations in the
United Kingdom through its Momentum subsidiary and in Spain
through its Aurum subsidiary. MDIF will be reorganized into a
corporation, and through MPD, will be privately held by Goldman
Sachs Capital Partners and EdgeStone Capital Partners.
MOVIE GALLERY: Executes Forbearance Agreement with Lenders
----------------------------------------------------------
Movie Gallery Inc. and certain lenders under its First Lien Credit
Facility executed a Forbearance Agreement effective as of July 2,
2007.
Under the agreement, the senior lender group will forbear until
Aug. 14, 2007, from exercising rights and remedies arising from
existing defaults, absent any new defaults under the senior credit
facility or the Forbearance Agreement.
Joe Malugen, chairman, president and chief executive officer of
Movie Gallery, said, "We are pleased to be working cooperatively
with our lenders to address the company's current financial
situation. In the near future, we expect to present a longer-term
solution to the lender group that will address the operational and
financial issues currently impacting our business. Meanwhile, our
plan is to operate our stores and, together with our outside
advisors, execute on our plan to conserve cash and improve
profitability. We appreciate the strong support of our customers,
the continued dedication of our employees, and the cooperation of
our trusted business partners as we work through this challenging
period."
About Movie Gallery
Headquartered in Dothan, Alabama, Movie Gallery, (Nasdaq: MOVI) --
http://www.moviegallery.com/-- is a provider of in-home movie and
game entertainment in the United States. It operates over 4,600
stores in the United States, Canada, and Mexico under the Movie
Gallery, Hollywood Entertainment, Game Crazy, and VHQ banners.
* * *
As reported in the Troubled Company Reporter on July 9, 2007,
Standard & Poor's Ratings Services lowered its corporate credit
rating on Movie Gallery Inc. to 'CCC+' from 'B-' based on the
announcement that the company was not able to meet its financial
covenants for the fiscal quarter ended July 1, 2007, and that the
company is exploring available restructuring and strategic
alternatives. The outlook is developing.
NATIONSLINK FUNDING: Fitch Holds B+ Rating on Class G Certs.
------------------------------------------------------------
Fitch Ratings affirms NationsLink Funding Corp.'s commercial
mortgage pass-through certificates, series 1998-1, as:
-- Interest-only class X-1 at 'AAA';
-- Interest-only class X-2 at 'AAA';
-- $12.5 million class B at 'AAA';
-- $56.1 million class C at 'AAA';
-- $48.5 million class D at 'AAA';
-- $51 million class F at 'BBB';
-- $10.2 million class G at 'B+'.
The $25.5 million class H remains at 'CC/DR4'; and the
$5.3 million class J remains 'C/DR6'. Fitch does not rate class
E. The non-rated class K had been reduced to zero as a result of
losses. Class A-1, A-2, and A-3 are paid in full.
Although actual credit enhancement has increased, affirmations are
warranted due to increasing loan concentration and significant
expected losses on the specially serviced assets. As of the July
2007 distribution date, the pool's aggregate certificate balance
has been reduced 77% to $234.8 million from $1.02 billion at
issuance.
Two assets (10.4%) are currently in special servicing. The
largest specially serviced asset (10.4%) is a hotel located in
Kissimmee, FL, and is currently real estate owned. The property
is currently listed for sale. Upon liquidation, significant
losses are expected to deplete class J and significantly affect
class H.
The second largest specially serviced asset (1%) is an REO retail
property located in Greencastle, IN. The loan transferred to the
special servicer due to delinquent payments as a result of cash
flow issues. The property is currently undergoing roof
renovations as a result of deferred maintenance. Once the roof
renovations are completed, the special servicer will begin
marketing the property for sale. A minimal loss is expected.
NEW JERSEY ECONOMIC: Fitch Rates 2007A and 2007B Bonds at BB+
-------------------------------------------------------------
Fitch assigns a 'BB+' rating to the New Jersey Economic
Development Authority revenue bonds, series 2007A and 2007B. The
2007A bonds will be issued at fixed rate with a par amount of
$47.86 million and the 2007B bonds will be issued as Extendable
Rate Adjustable Securities with a $5 million par amount. The 2007
bonds are expected to price via negotiation led through Ziegler
Capital Markets the week of Aug. 13, 2007. Concurrently, Fitch is
downgrading approximately $15.6 million of outstanding NJEDA
(Harrogate Incorporated) revenue bonds, series 1997 to 'BB+' from
'BBB'. The series 1997 bonds will be refunded with the proceeds
from the 2007 issue. The Rating Outlook is Stable.
The downgrade to 'BB+' is driven by the increased debt burden
associated with Harrogate Incorporated's planned financing of a
new 54 unit assisted living facility, renovation and
reconfiguration of the existing nursing facility, and other common
area facility improvements. The approximate $38 million of new
debt will increase Harrogate's long-term debt from $15 million in
fiscal 2006 to $52.7 million. Pro-forma maximum annual debt
service (assuming the pay down of $10.0 million in Series 2007
bonds by 2012) rises to $2.9 million from $1.5 million. Thus, pro
forma MADS as percentage of fiscal 2006 revenue increases to
18.3%, far exceeding Fitch's 'BBB' category median of 10.5% while
historical pro-forma MADS coverage by funds available in fiscal
2006 is a weak 1.1 times.
Fitch views the assisted living/nursing center
expansion/reconfiguration as necessary to alleviate capacity
constraints and resident flow issues throughout Harrogate's
continuum of care. The 60-semi-private skilled nursing beds will
be reconfigured to 32 mostly-private beds while 54 new 'medical
model' assisted living beds will be added. Since 2003 Harrogate
has had to divert approximately 1,500 SNF days due to its space
constraints. The project is expected to eliminate these diversions
to outside facilities as well as allow for more economical
staffing requirements for residents in the health center. In
addition, the project should allow for greater turnover of
independent living units by expanding the available continuum for
those residents requiring assisted living services. Fitch reviewed
Harrogate's financial feasibility study and views the assumptions
as conservative. Occupancy in 2010 is projected to be at 88% with
leveling off occurring in 2012 at 92%.
Additional credit concerns include a weakening real estate market
in Harrogate's primary service area and historically inconsistent
operating results. According to National Association of Realtors,
median selling prices in Ocean County, NJ (rated 'AA+' by Fitch)
have fallen from $394,000 in 2005 to $377,400 in 2006. Since
many potential CCRC residents depend on the receipts generated
from selling their homes before they can afford to move into a
CCRC, a decline in the local real estate market may adversely
impact demand for CCRC's, especially those with Type A contracts
which typically require larger entrance fees. Harrogate's
operating results have been largely uneven with excess margins
fluctuating between negative 6.0% and positive 7.7% since fiscal
2003. Negative excess margin of 2.4% in fiscal 2006 was largely
due to a loss of Medicare payments due to capacity constraints at
the SNF, which required some diversions to neighboring facilities
and below average occupancy at the ILU (88.8%). Through the five
months ended May 31, 2007, Harrogate earned $348,000 (4.9% excess
margin) as occupancy at the ILU has improved to 93%.
Harrogate's strength remains its strong liquidity relative to
expenses. At the May 31, 2006, Harrogate's unrestricted cash and
investments totaled $17.2 million, which equaled 417 days cash on
hand.
The Stable Outlook reflects Harrogate's strong liquidity and
Fitch's belief that the project will result in improved
operations, better demand for Harrogate's services, and updated
plant. In fiscal 2011, Harrogate projects DCOH at 380, MADS
coverage of approximately 2.1x which reflects the pay down of
$10.0 million of series 2007 bonds, the fill up the new ALUs and
receipt of entrance fees from vacated ILUs.
Harrogate is a Type A continuing care retirement community
providing 275 independent living units, eight assisted living
units, and 60 nursing beds, located in Lakewood, New Jersey,
approximately 70 miles from New York City. Harrogate is required
to disclose annual and quarterly financial statements to
Nationally Recognized Municipal Securities Information
Repositories. Annual disclosure and quarterly disclosure are not
to be released later than 150 days and 45 days, respectively,
after corresponding end of period.
NEW PROVIDENCE: Case Summary & 17 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: New Providence Residence Inns, Inc.
dba Fresno Travelodge
dba Knights Inn
3093 North Parkway Drive
Fresno, CA 93722
Bankruptcy Case No.: 07-12208
Chapter 11 Petition Date: July 23, 2007
Court: Eastern District of California (Fresno)
Judge: Whitney Rimel
Debtor's Counsel: Hagop T. Bedoyan, Esq.
Caswell, Bell & Hillison LLP
5200 North Palm Avenue, Suite 211
Fresno, CA 93704
Tel: (559) 225-6550
Fax: (559) 225-7912
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's List of its 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Ramses and Maria Laxina Shareholder Loans $250,000
102 Newark Pompton Turnpike
Riverdale, NJ 07508
Diane & Oscar Lesaca Loan Shareholder $111,000
2913 Lyon Estate Court
San Jose, CA 95135
Gelacio & Marisol Ramirez Loan Shareholder $100,000
32 Circle Avenue
Haledon, NJ 07508
Victoria and Joselito Versoza Shareholder Loan $30,000
Fr. Pete Literal Loan Shareholder $30,000
Allied Insurance Property and $13,700
Casualty Insurance
First Comp. Endurance Workmans' Compensation $13,133
Citibank N.A. AAA Card $12,000
PG&E $16,852
ADP, Financial Service Div. $7,000
American Tex-Chem Corp. Supplier $5,322
Elenita Verano $5,000
Micro Fridge $3,920
City of Fresno $3,000
AT&T Travelodge $1,600
Utilities $1,250
Knights Inn $1,157
K&L Distributing Supplier $551
Kertel Communications, Inc. Supplier $494
NYLSTAR INC: Hires Glenn Feldmann as Special Counsel
----------------------------------------------------
The United States Bankruptcy Court for the Western District of
Virginia gave Nylstar Inc. permission to employ Glenn Feldmann
Darby and Goodlatte as its special counsel.
As the Debtor's special counsel, the firm is expected to
continue to provide representation of the Debtor on general
corporate, collection, commercial financing and tradmark
matters, and discrimination cases.
The Debtor tells the Court that H.M. Darby, Jr., Esq., a
member of the firm, will perform the majority of the work for
the Debtor. Mr. Darby will charge $220 per hour for this
engagement.
The firm's professionals billing rates are:
Designation Hourly Rate
----------- -----------
Members $220
Associates $150
Paralegals $45
To the Debtor's best knowledge the firm does not hold any
interest adverse to the Debtor's estate and is a "disineterested
person" as defined in Section 101(14) of the Bankruptcy Code.
Mr. Darby can be reached at:
H.M. Darby, Jr., Esq.
lenn Feldmann Darby and Goodlatte
210 1st. Street S.W., Suite 200
Roanoke, Virginia 24038-4125
Tel: (540) 224-8000
Fax: (540) 224-8050
http://www.gfdg.com/
Headquartered in Ridgeway, Virginia, Nylstar Inc.
-- http://www.nylstar.com/-- manufactures nylon fibers.
The company filed for Chapter 11 protection on July 5, 2007
(Bankr. W.D. Va. Case No. 07-61227). Richard C. Maxwell, Esq., at
Woods, Rogers & Hazlegrove, P.L.C., represents the Debtor. No
Official Committee of Unsecured Creditors has been appointed to
date on this case. When the Debtor filed for bankruptcy, its
listed estimated assets and debts between $50 million and
$100 million.
The company's parent, Nysltar France, was placed into voluntary
administration or redressement judiciaire on July 6, 2007, by the
President of the Arras Commercial Court. This is the French
equivalent of the United States' chapter 11 process.
ORLANDO CITYPLACE: Files for Bankruptcy on Slow Condo Unit Sales
----------------------------------------------------------------
Orlando CityPlace LLC filed for a voluntary Chapter 11 petitions
with the U.S. Bankruptcy Court for the Middle District of Florida
on July 23, 2007. Two affiliates, namely Orlando CityPlace II,
L.L.C. and O.C.P. Corner, L.L.C., also filed voluntary chapter 11
petitions.
The company says that it filed for bankruptcy after it encountered
loan repayment problems due to slow condo unit sales, the Orlando
Business Journal reports.
The filing, the report adds, was agreed to by the company's two
principals, Barry Greer and George Kalivretenos, and IStar
Financial Inc., a secured lender holding a $30 million
claim against the company.
Headquartered in Orlando, Florida, Orlando CityPlace, L.L.C., owns
The Lexington condo-hotel project and District Five Restaurant
located on the corner of W. Colonial Drive and Hughey Avenue in
downtown Orlando.
ORLANDO CITYPLACE: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: Orlando CityPlace, L.L.C.
dba The Lexington at Orlando CityPlace
dba District Five
4700 Millenia Boulevard, Suite 340
Orlando, FL 32839
Bankruptcy Case No.: 07-03159
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Orlando CityPlace II, L.L.C. 07-03161
O.C.P. Corner, L.L.C. 07-03162
Type of business: The Debtor is a real estate developer. It owns
the Lexington Hotel and District Five Restaurant
in Orlando. See
http://www.lexingtonorlando.com/
Chapter 11 Petition Date: July 23, 2007
Court: Middle District of Florida (Orlando)
Judge: Karen S. Jennemann
Debtor's Counsel: Jimmy D. Parrish, Esq.
Mariane L. Dorris, Esq.
R. Scott Shuker, Esq.
Latham, Shuker, Eden & Beaudine, L.L.P.
P.O. Box 3353
Orlando, FL 32802
Tel: (407) 481-5800
Fax: (407) 481-5801
Total Assets Total Debts
------------ -----------
Orlando CityPlace, L.L.C. $55,000,000 $44,000,000
O.C.P. Corner, L.L.C. $2,000,000 $1,700,000
Orlando CityPlace II, $1 Million to $1 Million to
L.L.C. $100 Million $100 Million
A. Orlando CityPlace, LLC's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Sysco Food Services trade debt $57,237
200 West Story Road
Ocoee, FL 34761
Vantage Hospitality Group trade debt $45,816
Attention: Roger Bloss,
President
9305 West Sample Road
Coral Springs, FL 33065
Parking Management trade debt $39,012
P.O. Box 690815
Orlando, FL 32869-0000
Orlando Magic, Ltd. trade debt $30,100
Worldwide Import Group, trade debt $16,728
L.L.C.
W.K.M.G. (Channel 6) trade debt $13,472
Orland C.V.B. trade debt $11,809
First Marketing Group trade debt $10,211
International
Williams Scotsman trade debt $7,995
Alsco trade debt $5,800
A.D.P., Inc. payroll fees $5,503
American Audio Visual trade debt $5,351
ThyssenKrupp Elevator repair/mixed $5,181
Corp. services
Resources in Food trade debt $5,000
International Minute Press trade debt $4,756
N.E.C. Financial Services, telephone $4,574
Inc. equipment lease
Horowitz & Knoch trade debt $4,485
Gcommerce Solutions trade debt $4,117
Ecolab trade debt $3,656
Waste Services of Florida, trade debt $3,859
Inc.
B. Orlando CityPlace II, LLC did not have file a list of its 20
largest unsecured creditors.
C. OCP Corner, LLC does not have any creditors who are not
insiders.
PERRY ELLIS: S&P Puts Preliminary B+ Rating on Sr. Unsec. Debt
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B+'
senior unsecured debt, preliminary 'B-' subordinated debt, and
preliminary 'CCC+' preferred stock ratings to the Rule 415
universal shelf registration for $200 million in debt securities
of Perry Ellis International Inc. (PEI; B+/Stable/--).
The company may sell debt securities, ordinary shares, or a
combination thereof. S&P expect the company to use net proceeds
for general corporate purposes, including repayment of
indebtedness, capital expenditures, working capital, and future
acquisitions. The company may invest funds that are not
immediately needed for these purposes in short-term marketable
securities, or reduce short-term borrowings.
"The 'B+' rating reflects the company's narrow product focus,
relatively high debt leverage, and somewhat aggressive acquisition
strategy," said Standard & Poor's credit analyst Susan H. Ding.
"It also incorporates the company's diverse portfolio of
nationally recognized brand names and its diverse distribution
channels."
PEI is a designer and marketer primarily of men's sportswear, golf
wear, and other casual wear. The company derives most of its
revenues from men's shirts and bottoms. Men's apparel tends to be
less fashion sensitive, somewhat mitigating the product
concentration of the business.
PEI has built a broad portfolio of owned and licensed brands
through a combination of acquisitions and internal development.
Its nationally recognized brand names in the U.S. include Perry
Ellis, John Henry, PING, Jantzen, Original Penguin, and Redsand.
Multiple brands at different price points allow the company to
access a broad array of retail distribution channels, including
department stores, chain stores, mass merchandisers, and specialty
shops. PEI also licenses its own brands as a way of expanding
into other product categories, thereby enhancing its brand
visibility in the marketplace.
Ratings List
Perry Ellis International Inc.
Corporate Credit Rating B+/Stable/--
New Ratings
$200 Million Rule 415 Shelf Registration
Senior Unsecured Debt (prelim) B+
Subordinated Debt (prelim) B-
Preferred Stock (prelim) CCC+
PNC MORTGAGE: Moody's Holds Junk Ratings on 2 Certificate Classes
-----------------------------------------------------------------
Moody's Investors Service upgraded the ratings of two classes and
affirmed the ratings of 11 classes of PNC Mortgage Acceptance
Corp., Commercial Mortgage Pass-Through Certificates, Series
2000-C1 as:
* Class A-2, $379,255,501, Fixed, affirmed at Aaa
* Class X, Notional, affirmed at Aaa
* Class B, $34,046,000, Fixed, affirmed at Aaa
* Class C, $34,047,000, Fixed, affirmed at Aaa
* Class D, $10,014,000, Fixed, affirmed at Aaa
* Class E, $26,036,000, Fixed, affirmed at Aa3
* Class F, $12,016,000, Fixed, upgraded to A3 from Baa1
* Class G, $12,017,000, Fixed, upgraded to Baa2 from Ba1
* Class H, $18,024,000, Fixed, affirmed at Ba2
* Class J, $8,011,000, Fixed, affirmed at Ba3
* Class K, $7,010,000, Fixed, affirmed at B2
* Class L, $8,011,000, Fixed, affirmed at Caa2
* Class M, $7,010,000, Fixed, affirmed at Ca
As of the July 16, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 30.5%
to $556.6 million from $801.0 million at securitization. The
Certificates are collateralized by 168 loans, ranging in size from
less than 1.0% to 3.9% of the pool, with the top 10 loans
representing 23.4% of the pool. Thirty-three loans, representing
23.2% of the pool, have defeased and have been replaced with U.S.
Government securities. Ten loans have been liquidated from the
trust resulting in aggregate realized losses of approximately
$10.9 million. Two loans, representing 0.9% of the pool, are in
special servicing. Moody's is estimating $1.6 million of losses
from all the specially serviced loans. Thirty-six loans,
representing 24.1% of the pool, are on the master servicer's
watchlist.
Moody's was provided with full-year 2006 operating results for
91.1% of the pool. Moody's weighted average loan to value ratio
for the conduit component is 74.9%, compared to 78.6% at last
review and compared to 84.3% at securitization. Moody's is
upgrading Classes F and G due to defeasance and stable overall
pool performance.
The top three conduit loans represent 10.1% of the outstanding
pool balance. The largest exposure is the 17 John Street Loan
($21.9 million - 3.9%) which is secured by a 111-unit multifamily
property located in New York City. Moody's LTV is 85.5%, compared
to 85.5% at last review and compared to 88.1% at securitization.
The second largest conduit loan is the San Croix Apartments Loan
($17.7 million - 3.1%), which is secured by a 352-unit garden
apartment complex located in Las Vegas, Nevada. Performance has
improved since last review due to increased rental revenues and
loan amortization. Moody's LTV is 69.6%, compared to 74.3% at
last review and compared to 92.3% at securitization.
The third largest conduit loan is the Ryder Integrated Logistics
Loan ($17.0 million -- 3.0%), which is secured by a 455,000 square
foot light industrial building located in Auburn Hills, Michigan.
Performance has been impacted due to decreased rental revenues.
The loan is on the master servicer's watchlist due to low debt
service coverage. Moody's LTV is 94.8%, compared to 82.2% at last
review and compared to 81.5% at securitization.
POE FINANCIAL: Exclusive Plan Filing Period Extended to August 14
-----------------------------------------------------------------
The Honorable Catherine Peek McEwen of the U.S. Bankruptcy Court
for the Middle District of California extended Poe Financial Group
Inc. and its debtor-affiliates' exclusive periods to:
a) file a plan of reorganization until Aug. 14, 2007; and
b) solicit acceptances of that plan until Oct. 8, 2007.
The Debtors told the Court that they need additional time to
complete a Chapter 11 plan of reorganization. Since filing for
bankruptcy, the Debtors have been preoccupied with the operation
of their business, obtaining debtor-in-possession financing,
dealing with the large volume of creditors, negotiating concerning
their office space lease, and dealing with complicated issues
regarding the Department of Financial Services and Citizens
Insurance Corporation.
Headquartered in Tampa, Florida, Poe Financial Group Inc.
-- http://www.poefinancialgroup.com/-- specializes in insuring
coastal properties assumed from Florida's high-risk insurance
pool. The Debtor and three of its affiliates file for chapter 11
protection on Aug. 18, 2006 (Bankr. M.D. Fla. Case No. 06-04288).
Noel R. Boeke, Esq., Leonard Gilbert, Esq., and Rod Anderson,
Esq., at Holland & Knight, LLP, represent the Debtors. When
the Debtors filed for protection from their creditors, they
estimated assets and debts of more than $50 million.
PROSPECT MEDICAL: Moody's Rates Proposed $115 Million Loan a B2
---------------------------------------------------------------
Moody's Investors Service has affirmed the B3 corporate family
rating of Prospect Medical Holdings, Inc. (Prospect, AMEX:PZZ) and
assigned a B2 rating to the proposed $115 million first lien
senior secured credit facility ($100 million term loan and $15
million revolving credit facility) and a Caa2 rating to the
proposed $45 million second lien senior secured credit facility.
Prospect and Prospect Medical Group, Inc., an affiliated physician
organization controlled by Prospect, will be co-borrowers under
the credit facility. The proceeds will be used to finance the
acquisition of Alta Healthcare System Inc., and retire existing
debt at Prospect. The outlook on the ratings is stable.
The rating agency said that the ratings are driven by Prospect's
limited geographic area, small membership base and focus on HMO
membership. The proposed acquisition of Alta Healthcare System,
Inc. (Alta) and its four hospitals is perceived as increasing
Prospect's risk profile due to the company's lack of experience in
operating a hospital system, although Alta's senior management
will join the pro forma company's management team, and Alta's
concentration in the Medicare and Medi-Cal (California's Medicaid
program) business segments. The rating also reflects Prospect's
weak financial profile, in particular, its consistent although
somewhat low earnings margins, which are offset by the increased
debt and high financial leverage resulting from the financing of
the proposed acquisition (initial debt to EBIT of approximately 5
times, where debt includes operating leases) and low interest
coverage ratio (initial EBIT coverage below 3 times). The rating
agency also noted that over the last few years Prospect has been
very acquisitive, with fifteen affiliated physician organizations
currently under its control, having completed another IPA
acquisition, ProMed, on June 1, 2007. Moody's anticipates that
the company will continue to seek additional IPAs and possibly
hospital acquisitions.
Prospect is a health care management services organization that
provides management services to affiliated physician organizations
that operate as independent physician associations or medical
clinics. Prospect's operations are concentrated in Orange County,
Los Angeles County and San Bernardino County in California. The
affiliated physician organizations have entered into agreements
with managed care companies to provide HMO enrollees with a full
range of non- hospital medical services in exchange for fixed
capitation payments. Prospect currently provides management
services to fifteen affiliated physician organizations, including
PMG, of which thirteen of the affiliated physician organizations
are controlled by PMG, one is 55% owned by PMG and the other is a
joint venture in which PMG owns 50% interest.
Through three management subsidiaries-Prospect Medical Systems,
Sierra Medical Management and ProMed Health Care Administrators-
Prospect has entered into long-term agreements to provide
management services to the affiliated physician organizations in
exchange for a management fee. The management services provided
include negotiation of contracts with physicians and HMOs,
physician recruiting and credentialing, human resources services,
claims administration, financial services, provider relations,
member services, case management including utilization management
and quality assurance, data collection, and management information
systems.
Moody's commented that the ratings are based on the expectation
that there will be no losses or impairments to PMG's contracts
with the managed care companies as a result of the transaction and
that the terms of the credit facility will require that at least
50% of excess cash flow be used for debt repayment.
The rating agency added that the ratings could move up if debt to
EBIT falls below 3x, EBIT to interest expense exceeds 4x, and the
company produces consistent net income margins of at least 5%.
However, if the enrolled membership at PMG declines by 5% or more,
if the medical ratio exceeds 82%, if cash flow from operations is
less than one times net income or if there is an acquisition of
another hospital system, then Moody's said the ratings could be
lowered.
These ratings were assigned with a stable outlook:
Prospect Medical Holdings, Inc.
-- first lien senior secured debt rating of B2;
-- second lien senior secured debt rating of Caa2.
This rating was affirmed with stable outlook:
Prospect Medical Holdings, Inc. - corporate family rating of B3.
Moody's last rating action on Prospect Medical was on July 20,
2007 when the rating agency withdrew the B3 senior secured credit
facility rating on its previously planned financing deal, which
was restructured into the current funding plan.
Prospect Medical Holdings, Inc. is headquartered in Culver City,
California. For the fiscal year ending September 30, 2006 total
revenue was $136 million with ending HMO enrollees of
approximately 171,400. As of September 30, 2006 the company
reported shareholders' equity of $33.8 million.
QUEST MINERALS: March 31 Balance Sheet Upside-down by $3.8 Million
------------------------------------------------------------------
Quest Minerals & Mining Corp.'s consolidated balance sheet at
March 31, 2007, showed $5.5 million in total assets and
$9.3 million in total liabilities, resulting in a $3.8 million
total stockholders' deficit.
At March 31, 2007, the company's consolidated financial statements
also showed strained liquidity with $26,460 in total current
assets available to pay $7.7 million in total current liabilities.
The company reported a net loss of $2 million for the first
quarter ended March 31, 2007, compared with net income of
$1.3 million for the same period ended March 31, 2006. Results
for the quarter ended March 31, 2007, included a loss on
derivatives of $116,497 compared to a gain on derivatives of
$2.5 million for the quarter ended March 31, 2006.
Revenues for Quest were $0 for the three months ended March 31,
2007, as compared to $0 for the three months ended March 31, 2006.
Quest has not been generating revenues from any of its mines since
June 2005, when, due to equipment breakdowns and a lack of working
capital, Quest had to shut down the mines.
Quest incurred an operating loss of $1.9 million for the three
months ended March 31, 2007, compared to an operating loss of
$1.2 million for the three months ended March 31, 2006. It had
higher operating losses in the first quarter of 2007 as compared
to 2006 primarily from the increase in conversion and warrant
issuance expense. This was offset by reductions in selling,
general, and administrative expenses and interest expense.
Quest incurred beneficial conversion expense of $292,500 for the
three months ended March 31, 2007. This expense resulted from the
issuance of shares of Series C Preferred Stock, which is
convertible into shares of common stock at the lesser of (i)
$0.008 per share or (ii) 100% of the average of the 5 closing bid
prices of the common stock immediately preceding such conversion
date.
Full-text copies of the company's consolidated financial
statements for the quarter ended March 31, 2007, are available for
free at http://researcharchives.com/t/s?21ba
Going Concern Doubt
Kempisty & Company, in New York, expressed substantial doubt about
Quest Minerals & Mining Corp.'s ability to continue as a going
concern after auditing the company's consolidated financial
statements for the years ended Dec. 31, 2006, 2005, and 2004. The
auditing firm reported that the company has incurred operating
losses since inception and requires additional capital to continue
operations. Additionally, the company could lose all of its
operating assets through current and/or pending litigation.
About Quest Minerals
Based in Paterson, New Jersey, Quest Minerals & Mining Corp.
(OTC BB: QMMG.OB) -- http://www.questminerals.com/-- acquires
and operates energy and mineral related properties in the
southeastern part of the United States. Quest focuses its efforts
on properties that produce quality compliance blend coal.
Gwenco Inc., a wholly owned subsidiary of Quest Minerals & Mining
Corp. headquartered in Ashland, Kentucky,, filed for chapter 11
protection on Feb. 28, 2007 (Bankr. E.D. Ky. Case No. 07-10081)
Paul Stewart Snyder, Esq., in Ashland, Kentucky represents the
Debtor. When the Debtor filed for bankruptcy, it listed estimated
assets and estimated debts of less than $10,000.
REGENCY ENERGY: Commences Offering of 10 Million Common Units
-------------------------------------------------------------
Regency Energy Partners LP commenced an underwritten public
offering of 10 million common units, pursuant to an effective
shelf-registration statement on Form S-3 (File No. 333- 141809).
In connection with the offering, Regency has granted the
underwriters the option to purchase up to 1.5 million additional
common units.
The Partnership intends to use the net proceeds from the offering
to redeem $192.5 million in principal amount, or 35%, of its
$550 million 8-3/8% senior notes due 2013; to repay in full the
remaining term loan outstanding under its credit facility; and to
repay a portion of its revolving credit indebtedness outstanding
under Regency's credit facility.
UBS Investment Bank, Goldman, Sachs & Co. and Morgan Stanley & Co.
Incorporated, are joint bookrunning managers for the offering.
The co-managing underwriters participating in the offering are
A.G. Edwards & Sons Inc., Credit Suisse Securities (USA) LLC, J.P.
Morgan Securities Inc. and Wachovia Capital Markets, LLC.
A copy of a preliminary prospectus supplement and related base
prospectus, meeting the requirements of Section 10 of the
Securities Act of 1933, as amended, can be obtained from:
UBS Securities LLC
Prospectus Department
299 Park Avenue
New York, N.Y., 10171
Telephone: (212) 821-3000)
--- or ---
Goldman, Sachs & Co.
Prospectus Department
85 Broad Street
New York, N.Y., 10004
Fax: (212) 902-9316
--- or ---
Morgan Stanley
180 Varick Street, 2nd Floor
New York, N.Y., 10014
http://morganstanley.com/
About Regency Energy
Regency Energy Partners LP (Nasdaq: RGNC) --
http://www.regencyenergy.com/-- is a midstream energy partnership
that gathers, processes, markets and transports natural gas and
natural gas liquids. Regency's general partner is majority-owned
by an affiliate of GE Energy Financial Services, a unit of GE
(NYSE: GE).
REGENCY ENERGY: Public Offering Cues Moody's to Review Ratings
--------------------------------------------------------------
Moody's Investors Service placed under review for possible upgrade
the ratings of Regency Energy Partners LP (Regency, the MLP, B1
CFR) and Regency Gas Services LP (the OLP, Ba1 sr. sec.) following
its launch of a public offering of ten million common units.
The rating review follows the change last month in Regency's
outlook to developing from negative when GE Energy Financial
Services acquired a controlling stake in Regency's general partner
sponsor and 32% of its LP units for $603 million.
Moody's plans to conclude the rating review in a month or so after
the consummation of the equity offering and the repayment of debt
with the proceeds. The review could result in a one notch upgrade
in Regency's CFR. Also assessed in the review will be the
operational performance of Regency's assets, many which are
recently acquired or constructed, and Regency's strategic
direction under GE's sponsorship.
Based on the 7/19/07 closing price of $34.12 per unit, the net
proceeds are expected to be roughly $330 million, which will be
used to pay down debt. If the offering is successful, Regency
will reduce debt by about 40% from 3/31/07 levels. The offering
would address concerns about the company's high leverage (6.7x
adjusted for Moody's standard adjustments for LTM 3/07, about 4x
pro forma for the offering) and modest headroom under its
financial covenants following a series of leveraged acquisitions
and an aggressive organic growth program.
While it is still early after the GE investment, the equity
offering sends a positive signal as to its financial policy for
Regency. Moody's notes that GE has a number of energy investments
that qualify to be placed in an MLP like Regency, and those
interests have the potential to influence its future growth.
On Review for Possible Upgrade:
Issuer: Regency Energy Partners LP
* Probability of Default Rating, Placed on Review for Possible
Upgrade, currently B1
* Corporate Family Rating, Placed on Review for Possible
Upgrade, currently B1
* Senior Unsecured Regular Bond/Debenture, Placed on Review for
Possible Upgrade, currently 69 - LGD4
Issuer: Regency Gas Services LP
* Speculative Grade Liquidity Rating, Placed on Review for
Possible Upgrade, currently SGL-3
* Senior Secured Bank Credit Facility, Placed on Review for
Possible Upgrade, currently 14 - LGD2
Outlook Actions:
Issuer: Regency Energy Partners LP
* Outlook, Changed To Rating Under Review From Developing
Issuer: Regency Gas Services LP
* Outlook, Changed To Rating Under Review From Developing
Headquartered in Dallas, Texas, Regency Energy Partners LP is a
publicly traded master limited partnership engaged in natural gas
gathering, processing, and transportation.
ROCHESTER SERVICE: Case Summary & Six Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Rochester Service Corp., LLC
3 Blue Spruce Court
Saint Paul, MN 55127
Bankruptcy Case No.: 07-32664
Chapter 11 Petition Date: July 23, 2007
Court: District of Minnesota (St. Paul)
Judge: Nancy C. Dreher
Debtor's Counsel: Chad J. Bolinske, Esq.
Bolinske & Bolinske PLLC
1660 South Highway 100, Suite 508
St. Louis Park, MN 55416
Tel: (952) 294-0144
Fax: (952) 294-0146
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's List of its Six Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Aquila-Minnesota Gasco Gas Charges $25,000
P.O. Box 4649
Carol Stream, IL 60197
City of Rochester Rubbish Removal $1,548
201 4 Street Southeast
Room 135
Rochester, MN 55904
Towing Charge $172
K and M Glass Glass Repair $1,511
208 16th Street Southeast
Rochester, MN 55904
Olmstead County $18,827
Renovation Systems $24,000
Rochester Public Utilities $6,121
ROUGE INDUSTRIES: Wants Until September 17 to File Chapter 11 Plan
------------------------------------------------------------------
Rouge Industries Inc. and its debtor-affiliates ask the United
State Bankruptcy Court for the District of Delaware to further
extend the exclusive periods to:
a. file a Chapter 11 plan until Sept. 17, 2007; and
b. solicit acceptances of that plan until Nov. 19, 2007.
Thomas F. Driscoll III, Esq., at Morris Nichols Arsht & Tunnell,
said the Debtors intend to use the request for extension to
finalize and file a liquidating Chapter 11 plan. The Debtors,
Mr. Driscoll added, want to conclude these cases as efficiently as
possible.
The Court will convene a hearing on Aug. 6, 2007, at 4:00 p.m.,
at 824 Market Street, 5th floor, in Courtroom #4 in Wilmington,
Delaware, to consider the Debtors' request.
Based in Dearborn, Michigan, Rouge Industries Inc., an
integrated producer of flat-rolled steel, filed for chapter 11
protection on October 23, 2003 (Bankr. D. Del. Case No. 03-13272).
Adam G. Landis, Esq., at Landis Rath & Cobb LLP and Alicia Beth
Davis, Esq., at Morris Nichols Arsht & Tunnell represent the
Debtors. Kurt F. Gwynne, Esq., and Richard Allen Keuler, Jr.,
Esq., at Reed Smith LLP serve as counsel to the Official Committee
of Unsecured Creditors. When the Debtors filed for protection
from their creditors, they listed $558,131,000 in total assets
and $558,131,000 in total debts.
On Dec. 19, 2003, the Court approved the sale of substantially
all of the Debtors' assets to SeverStal N.A. for $285.5 million.
The Asset Sale closed on Jan. 30, 2005.
SHANNON FALK: Case Summary & Three Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Shannon Falk
7000 Malone Road
Forestville, CA 95436
Bankruptcy Case No.: 07-10865
Chapter 11 Petition Date: July 20, 2007
Court: Northern District of California (Santa Rosa)
Judge: Alan Jaroslovsky
Debtor's Counsel: David N. Chandler, Esq.
1747 4th Street
Santa Rosa, CA 95404
Tel: (707) 528-4331
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's Three Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Michael Falk unknown
P.O. Box 1354
Forestville, CA 95436-1354
Richard Sax $34,132
448 Sebastapol Avenue
Santa Rosa, CA 95401-8501
St. Helena Hospital $5,493
10 Woodland Road
Saint Helena, CA 94574
SKYLINE CONCRETE: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Skyline Concrete Floor Corp.
13201 Newburgh Road
Livonia, MI 48150
Tel: (734) 591-1166
Bankruptcy Case No.: 07-54154
Type of business: The Debtor is a concrete contractor.
Chapter 11 Petition Date: July 20, 2007
Court: Eastern District of Michigan (Detroit)
Judge: Marci B. McIvor
Debtor's Counsel: Wallace M. Handler, Esq.
Sullivan, Ward, Asher & Patton, P.C.
25800 Northwestern Highway, Suite 1000
Southfield, MI 48075
Tel: (248) 746-2780
Estimated Assets: $100,000 to $1 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Paul Fortuna $900,000
930 Coldspring Drive
Northville, MI 48167
Terry Sweeney & Co. $106,841
P.O. Box 506
25265 Trans-x Road
Novi, MI 48376
Moretti Foundation Co. $35,668
23933 Allen Road
Woodhaven, MI 48183
M.C.C.O.I.G. Materials, $18,959
L.L.C.
Cougar Contracting, Inc. $15,465
Nagy Ready Mix $9,281
The Rehman Group $9,250
H.Y.M.M.C.O., Ltd. $8,801
Doan Companies $8,135
G.M. and Sons, Inc. $7,487
Graff Concrete Cutting $5,912
Ohio Concrete Sawing, Inc. $5,020
Taft Steel $4,000
Albert Sibilla $2,250
R.&E. Trucking $2,175
Russell Brothers Concrete $1,799
Michigan Cat $1,145
Moritz Concrete, Inc. $1,057
Team Equipment $798
Southeastern Michigan $742
Sealants
SOUTHPARK COMMUNITY: Judge Summerhays Confirms Chapter 11 Plan
--------------------------------------------------------------
The Honorable Robert Summerhays of the U.S. Bankruptcy Court for
the Western District of Louisiana confirmed Southpark Community
Hospital LLC's Chapter 11 Plan of Reorganization.
Treatment of Claims
As reported in the Troubled Company Reporter on July 3, 2007,
under the Plan, Administrative Expense Claims will be paid in
full in cash after the effective date.
Priority Unsecured Claims will also be paid in full through equal
monthly payments over a period of 60 months from the Debtor's
bankruptcy filing.
Secured Senior Real Estate Lender Claim, totaling $8.25 million,
will be paid in cash in full at closing. The claim will be
reduced to $7.88 million by the effective date due to payments,
arising from a loan to the Debtor used for the purchase of real
estate and construction of the hospital.
Siemens and Secured Senior Equipment Lender Claims will retain
their liens on their collateral and will retain any rights against
third-party guarantors of the obligations, but will release any
liens rights over the secured junior claims collateral.
Holders of Secured Junior Claims, totaling $7.8 million, will
receive the new Southpark Holdings Membership Units which will be
the new equity interest in new Southpark Holdings, the new owner
of reorganized Debtor. In addition, holders will receive any
distribution on a quarterly basis until all of their claims have
been liquidated and distributed.
Other Secured Claims will be set off against the same amount of
its claim against the Debtor.
Holders of Unsecured Convenience Claims having claims of $1,000 or
less will receive 20% of their allowed claim. Holders with claims
above $1,000 will have the option to reduce their claims to $1,000
and receive 20% of the reduced amount.
Holders of General Unsecured Claims will receive up to 10% of
its allowed claim at closing. Holders will also be entitled to
receive additional 10%, not to exceed $1 million, from Southpark
Acquisition in quarterly payments over a period of 34 quarters.
Equity Interest will not receive any distribution and will be
cancelled.
Based in Lafayette, Louisiana, Southpark Community Hospital, LLC
-- http://www.southparkhospital.com/-- provides personalized,
quality, professional, and comprehensive health care services.
The Debtor filed for Chapter 11 protection on November 30, 2006
(Bankr. W.D. La. Case No. 06-51053). Brandon A. Brown, Esq. and
Louis M. Phillips, Esq., at Gordon, Arata, McCollam, Duplantis, &
Eagan, LLP, represent the Debtor in its restructuring efforts.
No Official Committee of Unsecured Creditors has been appointed
in this case. When the Debtor filed for protection from its
creditors, it listed estimated assets and debts of $1 million
to $100 million.
SPECTRUM BRANDS: Provides Further Projections for Fiscal 2007
-------------------------------------------------------------
Spectrum Brands Inc. provided further information regarding
current expectations for fiscal 2007 financial results. The
company reported that cash on hand at the close of the quarter
ending June 30, 2007, was in excess of $175 million and that it
expects to generate total operating cash flow of between
$120 million and $140 million during the six month period ending
Sept. 30, 2007. The expected cash flow number differs from the
company's earlier projections due to:
(1) a previously announced $20 million shortfall in EBITDA as
compared to that projected in the 8K filing, and
(2) the fact that $30 million assumed to be generated in the
third quarter in the earlier projections was instead
generated during the company's fiscal second quarter
ended April 1, 2007.
Net debt at Sept. 30, 2007, is anticipated to be approximately
$2.4 billion, a reduction of approximately $200 million as
compared with reported net debt as of April 1, 2007.
As previously announced, Spectrum expects to reduce its
indebtedness under its senior credit facility term loan by the
amount of $225 million during the fourth quarter through a
combination of cash on hand and positive operating cash flow.
In addition, Spectrum has received financing commitments from
Goldman Sachs and Wachovia Bank to provide the company with a
$225 million asset based loan facility. Although Spectrum does
not currently anticipate the need to borrow on the ABL facility at
closing, it will be available for future working capital needs at
lower interest rates than the company's current term loan. The
ABL facility is expected to close during the fiscal fourth quarter
ending Sept. 30, 2007.
The company currently anticipates that positive operating cash
flow and the available credit under the asset based loan facility
will be sufficient to meet liquidity and working capital needs for
the foreseeable future.
Spectrum Brands reiterated its strategy of reducing indebtedness
and leverage through the strategic sale of assets, including its
Home & Garden business, which is currently being accounted for as
discontinued operations, and potentially other additional assets.
About Spectrum Brands
Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC)
-- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25 retailers
and are available in more than one million stores in 120 countries
around the world. The company has manufacturing and distribution
facilities in China, Australia and New Zealand, and sales offices
in Melbourne, Shanghai, and Singapore.
* * *
As reported in the Troubled Company Reporter on April 30, 2007,
Fitch Ratings affirmed the ratings of Spectrum Brands Inc.,
including its CCC issuer default rating, its CCC- rating of the
company's $700 million 7-3/8% senior subordinated note due 2015
and its CCC- rating of the company's $350 million 11.25% Variable
Rate Toggle Interest pay-in-kind Senior Subordinated Note due
2013. The Outlook remains Negative.
STRUCTURED FINANCE: Fitch Puts Ratings on 26 Classes on Watch
-------------------------------------------------------------
Fitch Ratings has placed 26 classes from 12 Structured Finance
collateralized debt obligations on Rating Watch Negative for
potential downgrades. Fitch also maintains 41 classes of 23 SF
CDOs on Watch Negative. These actions are a direct result of
collateral deterioration, specifically subprime RMBS, wherein
significant portions of the portfolio have been downgraded, placed
on Rating Watch Negative or 'Under Analysis' by either Fitch,
Moody's or S&P in recent weeks. Fitch rates approximately $54.4
billion notes from 160 U.S. mezzanine SF CDOs and approximately
$39.6 billion notes from 41 U.S. high-grade SF CDOs. The actions
affect approximately $603 million of CDO notes issued from $4.8
billion of mezzanine SF CDOs issued between 2001 and 2006. To
date the cumulative tranches placed on Rating Watch Negative
resulting from recent subprime RMBS credit deterioration total
approximately $1.4 billion of CDO notes from $16 billion of SF
CDOs, representing approximately 17.0% of the Fitch-rated U.S. SF
CDOs.
Fitch has placed these U.S. CDO notes on Rating Watch Negative:
Bluegrass ABS CDO III, Ltd
-- $6,750,000 class D-1 notes 'BBB';
-- $3,375,000 class D-2 notes 'BBB';
-- $5,495,178 Combination Notes 'BBB-'.
Diversified Asset Securitization Holdings III, L.P.
-- $30,000,000 class A-3L notes 'B/DR1'.
Fulton Street CDO, Ltd./Funding Corp.
-- $9,000,000 class B-1 notes 'BBB';
-- $10,000,000 class B-2 notes 'BBB';
-- $6,093,677 class C notes 'B-/DR1'.
Independence IV CDO, Ltd.
-- $24,587,814 class C notes 'BBB'.
Independence V CDO, Ltd.
-- $22,700,191 class C notes 'BBB';
-- $19,100,000 class Series 1 Preference Shares notes 'BB-';
-- $5,500,000 class Series 2 Preference Shares notes 'BB-'.
Independence VII CDO, Ltd
-- $24,900,000 class E notes 'BBB';
-- $5,400,000 class F notes 'BB+'.
Libertas Preferred Funding I, Ltd
-- $13,539,168 class E notes 'BBB';
-- $11,773,190 class F notes 'BBB-';
-- $8,829,892 class G notes 'BB+'.
Northlake CDO I, Ltd.
-- $45,000,000 class II notes 'A';
-- $12,244,268 class III notes 'BB'.
Oceanview CBO I, Ltd.
-- $28,000,000 class A-2 notes 'BB-';
-- $12,233,945 class B-F notes 'CC/DR6';
-- $5,842,804 class B-V notes 'CC/DR6'.
Pacific Coast CDO, Ltd.
-- $154,890,799 class A notes 'AA';
-- $96,000,000 class B notes 'B/DR4'.
South Coast Funding III Ltd.
-- $28,000,000 class C notes 'BBB'.
Whately CDO I, Ltd./Corp.
-- $4,000,000 class BF notes 'BBB';
-- $10,000,000 class BV notes 'BBB'.
SUN PLASTICS: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Sun Plastics, Inc.
2659 American Lane
Elk Grove Village, IL 60007
Bankruptcy Case No.: 07-13025
Type of business: The Debtor manufactures injection molded plastic
products.
Chapter 11 Petition Date: July 20, 2007
Court: Northern District of Illinois (Chicago)
Judge: Jack B. Schmetterer
Debtor's Counsel: Richard N. Golding, Esq.
The Boyce Building
500 North Dearborn Street, Second Floor
Chicago, IL 60610
Tel: (312) 832-7885
Fax: (312) 755-5720
Total Assets: $0
Total Debts: $3,271,324
The Debtor did not file a list of its 20 largest unsecured
creditors.
T REIT INC: Transfers Assets and Liabilities to Liquidating Trust
-----------------------------------------------------------------
T REIT Inc. has transferred its remaining assets to, and its
remaining liabilities were assumed by, the Liquidating Trust in
accordance with the company's Plan of Liquidation and an Agreement
and Declaration of Trust, W. Brand Inlow, the trustee of the T
REIT Liquidating Trust, reported.
The company's stock transfer books were closed as of the close
of business on July 16, 2007.
The Trustee also reported that the company filed a Form 15 with
the Securities and Exchange Commission to terminate the
registration of the company's common stock under the Securities
Exchange Act of 1934 and that the company will cease filing
reports under that act. However, the Trustee will issue to
beneficiaries of the Liquidating Trust and file with the
Securities and Exchange Commission annual reports on Form 10-K and
current reports on Form 8-K.
Upon the formation of the Liquidating Trust, each shareholder of
the company on the Record Date automatically became the holder of
one unit of beneficial interest in the Liquidating Trust for each
share of the company's common stock then held of record by such
shareholder. In accordance with the Plan of Liquidation, all
outstanding shares of the company's common stock were deemed
cancelled when the assets and liabilities of the company were
transferred to the Liquidating Trust.
Shareholders were not required to take any action to receive
beneficial interests, and the rights of beneficiaries in their
beneficial interests are not represented by any form of
certificate or other instrument. The Trustee maintains a record
of the name and address of each beneficiary and such beneficiary's
aggregate units of beneficial interest in the Liquidating Trust.
Subject to certain exceptions related to transfer by will,
intestate succession or operation of law, beneficial interests in
the Liquidating Trust are not transferable, nor does a beneficiary
have authority or power to sell or in any other manner dispose of
any such beneficial interests.
In addition, immediately before the transfer of the company's
assets and liabilities to the Liquidating Trust, the company's
operating partnership redeemed the special limited partner
interest held by Triple Net Properties LLC, in exchange for $1.
As such, Triple Net Properties LLC relinquished its entitlement,
pursuant to the terms of the operating partnership agreement, to
15% of certain distributions made by the company.
After the redemption, the company became the 100% owner of the
outstanding partnership interests in the operating partnership.
The operating partnership was dissolved in connection with the
dissolution of the company, and all of its assets and liabilities
were distributed to the company.
The Liquidating Trust was organized for the purpose of winding up
the company's affairs and the liquidation of its assets. The
transfer of the company's assets and liabilities to the
Liquidating Trust should preserve the company's ability to have
deducted amounts distributed pursuant to the Plan of Liquidation
as dividends and thereby not be subject to federal income tax on
such amounts.
It is expected that from time to time the Liquidating Trust will
make distributions of its assets to beneficiaries, but only to the
extent that such assets will not be needed to provide for the
liabilities assumed by the Liquidating Trust. No assurances can
be given as to the amount or timing of any distributions by the
Liquidating Trust.
For federal income tax purposes, on the date the assets and
liabilities of the company were transferred to the Liquidating
Trust, each shareholder of the company as of the Record Date was
treated as having received a pro rata share of the assets of the
Company transferred to the Liquidating Trust, less such
shareholder's pro rata share of the liabilities of the company
assumed by the Liquidating Trust.
Accordingly, on that date each shareholder should recognize gain
or loss in an amount equal to the difference between (x) the fair
market value of such shareholder's pro rata share of the net
equity of the company transferred to the Liquidating Trust, and
(y) such shareholder's adjusted tax basis in the shares of the
company's common stock held by such shareholder on the Record
Date.
The Liquidating Trust is intended to qualify as a "liquidating
(grantor) trust" for federal income tax purposes. As such, the
Liquidating Trust should not itself be subject to federal income
tax. Instead, each beneficiary shall take into account in
computing its taxable income, its pro rata share of each item of
income, gain, loss and deduction of the Liquidating Trust,
regardless of the amount or timing of distributions made by the
Liquidating Trust to beneficiaries. Distributions, if any, by the
Liquidating Trust to beneficiaries generally should not be taxable
to such beneficiaries.
The Trustee will furnish to beneficiaries of the Liquidating Trust
a statement of their pro rata share of the assets transferred by
the company to the Liquidating Trust, less their pro rata share of
the Company's liabilities assumed by the Liquidating Trust so that
they may calculate their gain or loss on the transfer.
On a yearly basis, the Trustee also will furnish to beneficiaries
a statement of their pro rata share of the items of income, gain,
loss, deduction and credit of the Liquidating Trust to be included
on their tax returns.
The state and local tax consequences of the transfer of assets to
the Liquidating Trust may be different from the federal income tax
consequences of such transfer. In addition, any items of income,
gain, loss, deduction or credit of the Liquidating Trust, and any
distribution made by the Liquidating Trust, may be treated
differently for state and local tax purposes than for federal
income tax purposes.
The tax summary above is for general informational purposes only
and does not address all possible tax considerations that may be
material to a shareholder of the company or a beneficiary of the
Liquidating Trust and does not constitute legal or tax advice.
Moreover, it does not deal with all tax aspects that might be
relevant to a shareholder of the company or a beneficiary of the
Liquidating Trust, in light of its personal circumstances, nor
does it deal with particular types of shareholders that are
subject to special treatment under the federal income tax laws.
To ensure compliance with requirements imposed by the Internal
Revenue Service, any tax information contained in this press
release is not intended or written to be used, and cannot be used,
for the purpose of (i) avoiding penalties under the Internal
Revenue Code or (ii) promoting, marketing or recommending to
another party any transaction or matter addressed herein.
Beneficiaries of the Liquidating Trust are urged to consult with
their tax advisers as to the tax consequences to them of the
establishment and operation of, and distributions by, the
Liquidating Trust.
About T REIT Inc.
Headquartered in Santa Ana, California, T REIT Inc. is in the
business of capitalizing on commercial real estate. The real
estate investment trust owns or has interests in a scant handful
of properties in Illinois and Texas. It manages the properties
through its majority-owned general operating partner. The company
is externally managed by Triple Net Properties. T REIT began
making overtures to go public in 1999, but by late 2004 company
management decided that a plan of liquidation would be the best
course of action. The plan was approved by shareholders in 2005,
and T REIT has been actively disposing of its properties ever
since.
T REIT Inc. entered into a liquidating trust agreement on July 16,
2007, for the purpose of winding up the company's affairs and
liquidating its assets.
TARPON INDUSTRIES: AMEX Continues Listing of Securities
-------------------------------------------------------
Tarpon Industries Inc. reported that the staff of the American
Stock Exchange has determined that Tarpon made a reasonable
demonstration of its ability to regain compliance with the
continued listing standards by the end of the revised plan period
of Sept. 30, 2007. The exchange's decision was based on a review
of information provided by Tarpon on June 4, 2007, and publicly
available information as well as conversations between AMEX staff
and representatives of Tarpon. Tarpon had previously demonstrated
progress and was granted an extension to May 31, 2007.
The AMEX staff will review Tarpon periodically for compliance with
the plan, and Tarpon will provide them with updates in conjunction
with the initiatives of the plan as appropriate or upon request.
If Tarpon is not in compliance with the continued listing
standards on Sept. 30, 2007, or Tarpon does not make progress
consistent with its plan to do so, then the AMEX may initiate
immediate delisting proceedings.
Previously, on Sept. 7, 2006, Tarpon received notices from AMEX
that it was not in compliance with certain conditions of the
continued listing standards of Section 1003 of the AMEX Company
Guide. Specifically, AMEX noted Tarpon's failure to comply with
Section 1003(a) (iv) of the AMEX Company Guide relating to
sustained losses or its financial condition had become so impaired
that it appeared questionable, in the opinion of Amex, as to
whether Tarpon would be able to continue operations and/or meet
its obligations, as required by Part 10 of the Guide.
About Tarpon Industries
Headquartered in Marysville, Michigan, Tarpon Industries Inc.
(AMEX: TPO) -- http://www.tarponind.com/-- through its wholly
owned subsidiaries within the United States and Canada,
manufactures and sells structural and mechanical steel tubing and
engineered steel storage rack systems.
Going Concern Doubt
As reported in the Troubled Company Reporter on April 26, 2007,
Rehman Robson expressed substantial doubt about Tarpon Industries
Inc.'s ability to continue as a going concern after auditing the
company's financial statements for the year ended Dec. 31, 2006.
The auditor pointed to the company's sustained recurring net
losses since its inception, negative working capital, and default
of its principle loan agreements due to its violation of specific
financial and non-financial debt covenants.
TERAYON COMMUNICATIONS: Completes $140 Million Sale to Motorola
---------------------------------------------------------------
Motorola Inc. has completed its acquisition of Terayon
Communication Systems Inc. Motorola acquired all of the
outstanding shares of Terayon's common stock for $1.80 per share
in cash. The transaction has a total equity value of
approximately $140 million on a fully-diluted basis.
The acquisition of Terayon and its software-driven application
solutions enhances Motorola's video infrastructure and seamless
mobility core by providing Motorola with industry-recognized video
processing solutions that enable digital ad insertion, motion and
graphical overlays, channel branding and channel line-up solutions
as well as cutting-edge ad insertion delivery technologies.
These solutions will enable Motorola's customers to optimize
bandwidth and deliver content based upon the regional and local
interest of viewers, accelerating the service provider's ability
to evolve and capitalize on new business opportunities.
The two companies signed a definitive merger agreement on April
23, 2007. The transaction was approved by the stockholders of
Terayon on June 28, 2007. With the completion of the transaction,
quotation of Terayon common stock on the Pink Sheets will cease.
Terayon now becomes a wholly-owned subsidiary of Motorola and was
integrated into the Motorola Home & Network Mobility business.
Motorola will maintain Terayon's operations in Santa Clara,
California.
The transaction is expected to be neutral to Motorola's earnings
per share in 2007, excluding certain non-cash charges relating to
amortization associated with acquired intangibles and other one-
time accounting and transaction-related costs.
About Motorola Inc.
Headquartered in Schaumburg, Illinois, Motorola Inc. (NYSE: MOT) -
- http://www.Motorola.com/-- is a manufacturer of wireless
communications, electronic systems, and semiconductors.
About Terayon Communication Systems
Headquartered in Santa Clara, California, Terayon Communication
Systems Inc. (Other OTC: TERN.PK) -- http://www.terayon.com/--
provides real-time digital video networking applications to cable,
satellite and telecommunication service providers worldwide.
* * *
The company's long-term local and foreign issuer credits carry
Standard & Poor's B- rating.
TEXAS INDUSTRIES: Moody's Rates Proposed $200MM Facility at Ba3
---------------------------------------------------------------
Moody's Investors Service assigned a Ba3 rating to TXI's proposed
$200 million senior unsecured credit facility and changed the
company's outlook to positive from stable. This new facility,
maturing in 2012, will replace the company's existing $200 million
senior secured bank facility maturing in 2010. However, unlike
the existing $200 million senior secured revolving bank line, this
new facility will be senior unsecured with a negative pledge.
Additionally, Moody's affirmed TXI's Ba3 corporate family rating,
the Ba3 rating for the company's outstanding $250 million of 7.25%
senior unsecured notes, and the Baa3 rating for the existing
$200 million senior secured credit facility, which will be
withdrawn upon the close of the new credit facility.
The positive outlook is based on the health of the industry in the
Southwest and West, primary markets for the company, where volume
growth greater than the area's population growth has led to strong
demand. Moody's also believes that the expansion and
modernization projects the company has undertaken will improve
TXI's cost position, resulting in strengthened profitability and
cash flow generation. However, this view is tempered by the
residential housing downturn, which remains a concern, although
this issue is mitigated by strong infrastructure and commercial
development. Furthermore, Moody's expects TXI to prudently manage
its capex and maintain balance sheet leverage below 2.0x.
The ratings reflect the company's moderate debt levels, despite
increased capital expenditures for plant expansion and
modernization, improving operating margins, and the favorable
pricing environment in the majority of its markets. The ratings
are also supported by high industry barriers to entry, the
strength of TXI's regional markets, and the continuing expectation
for a domestic supply-demand imbalance for cement. Also
considered in the ratings is the potential impact from higher
energy costs, which comprise approximately 40% of TXI's total
costs, the company's smaller size versus foreign competitors, its
dependence on construction activity in Texas and California, and
the fact that its debt levels will rise over the next two years if
it adheres to its plant expansion and capital expenditure plans.
Assignments:
Issuer: Texas Industries, Inc.
* Senior Unsecured Bank Credit Facility, Assigned Ba3
Outlook Actions:
* Issuer: Texas Industries, Inc.
* Outlook, Changed To Positive From Stable
TXI, headquartered in Dallas, Texas, manufactures cement,
aggregates and ready-mix concrete. The company serves end-use
markets such as public works, commercial, residential, industrial
and institutional construction sectors, and energy markets. With
production capacity of approximately 4.9 million tons of clinker,
TXI is one of the largest cement producers in the US, and enjoys
strong market positions in its primary markets of Texas, where it
has a leading 30% market share, and California. For fiscal year
end May 31, 2007, TXI generated approximately $996 million in
revenues.
TWEETER HOME: Court Approves $10 Million Schultze DIP Financing
---------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware authorized
Tweeter Home Entertainment Group Inc. and its debtor-affiliates,
on a final basis, to use up to $10,000,000 in postpetition
financing from Schultze Agency Services, LLC, as administrative
agent, and Schultze Master Fund Ltd., and Arrow Distressed
Securities Fund, as lenders.
New England Audio Co. Inc. and certain debtor-affiliates are
borrowers under a Junior Secured Super-Priority Debtor-in-
Possession Credit Agreement. Tweeter Home serves as guarantor.
The Debtors will use the money to pay current obligations under
their $60,000,000 Senior DIP Credit Facility with General
Electric Capital Corp.
The Debtors will pay the principal interest, fees and expenses
set forth in the Junior DIP Credit Agreement and all other
documents comprising the Junior DIP Credit Facility as they
become due. However, the unresolved disputes as to the
reasonableness of any professional fees and expenses may be
determined by the Court.
Effective June 26, 2007, the Junior DIP Agent is granted the DIP
Liens, or a first priority, continuing, enforceable and
automatically perfected postpetition security interest in and
lien on the Tivoli Collateral, and a second priority, continuing
and automatically perfected postpetition security interests in
and liens, junior only the liens granted to the Senior DIP Agent
under the Senior DIP Order and the adequate protection
replacement liens of the Prepetition Agent.
The Court allows all Junior DIP obligations as super-priority
administrative expense claims, with priority in each case and
over all administrative expense and unsecured claims against the
Debtors and their estates.
All Junior DIP Obligations of the Debtors to the Junior DIP Agent
and Lenders will be immediately due and payable on the date that
is the earliest to occur of:
* Jan. 11, 2008;
* the effective date of any plan of reorganization for any
of the Debtors confirmed pursuant to Section 1129 of the
Bankruptcy Code;
* the date that is a "Commitment Termination Date," as
defined in the Final Junior DIP Order; and
* the date that is a "Commitment Termination Date," as
defined in the Junior DIP Credit Agreement.
The Court rules that the DIP Superpriority Claim will be junior
in all respects to the superpriority claim granted under the
Senior DIP Order, and will not extend to the proceeds of certain
avoidance actions.
Nothing in the Final Junior DIP Order affects the rights of the
Senior DIP Agent or the Prepetition Agent, except that the first
priority pledges of, liens on and security interests in the
Tivoli Collateral will be held by the Junior DIP Agent and the
second priority by the Senior DIP Agent.
Under their Intercreditor Agreement, the Senior DIP Agent and the
Junior DIP Agent agreed to a sharing arrangement with respect to
their obligations to make payments under the Carve Out.
Moreover, the Court modifies the automatic stay imposed under
Section 362(a) to permit the Debtors to grant the DIP liens and
incur all obligations to the Junior DIP Agent and Lenders, and to
allow the Junior DIP Agent to retain and apply related payments.
All objections to the Junior DIP Motion to the extent not
withdrawn or resolved are overruled.
Based in Canton, Mass., Tweeter Home Entertainment Group Inc.
-- http://www.tweeter.com/-- retails mid-to high-end audio and
video consumer electronics products. Tweeter and seven of its
affiliates filed for chapter 11 Protection on June 11, 2007
(Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M.
Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden,
Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in
their restructuring efforts. As of Dec. 21, 2006, Tweeter
had total assets of $258,573,353 and total debts of
$190,417,285.
The Debtors' exclusive period to file a plan expires on Oct. 9,
2007. Tweeter Bankruptcy News, Issue No. 6, Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
TWEETER HOME: U.S. Trustee Adds J.L. Audio to Creditors Committee
-----------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
appointed J.L. Audio, Inc., to the Official Committee of
Unsecured Creditors, effective July 9, 2007, in connection with
the Chapter 11 cases of Tweeter Home Entertainment Group Inc.
and its debtor-affiliates.
The Creditors Committee is now composed of:
1. Polk Audio, Inc.
Attn: Robert A. Tryson
5601 Metro Drive
Baltimore, Maryland 21215
Tel: (410)764-5247
2. Simon Property Group, Inc.
Attn: Ronald M. Tucker, Vice President
225 W. Washington Street
Indianapolis, Indiana 46204
Tel: (317)263-2346
Fax: (317)263-7901
3. Ryder Truck Rental, Inc.
Attn: Kevin P. Sauntry
6000 Windward Parkway
Alpharetta, Georgia 30005
Tel: (770)569-6511
Fax: (770)569-6712
4. The Quest Group
Attn: Michael McConnell
2621 White Road
Irvine, California 92614
Tel: (949)790-6033
Fax: (949)585-0444
5. OmniMount Systems, Inc.
Attn: Andrew W. Prete
8201 South 48th Street
Phoenix, Arizona 85044
Tel: (480)829-8000
Fax: (480)829-9000
6. J.L. Audio, Inc.
Attn: Marianne Von Feldt
10369 North Commerce Parkway
Miramar, Florida 33025
Tel: (954)443-1100
Fax: (954)443-1111
Based in Canton, Mass., Tweeter Home Entertainment Group Inc.
-- http://www.tweeter.com/-- retails mid-to high-end audio and
video consumer electronics products. Tweeter and seven of its
affiliates filed for chapter 11 Protection on June 11, 2007
(Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M.
Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden,
Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in
their restructuring efforts. As of Dec. 21, 2006, Tweeter
had total assets of $258,573,353 and total debts of
$190,417,285.
The Debtors' exclusive period to file a plan expires on Oct. 9,
2007. Tweeter Bankruptcy News, Issue No. 6, Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
UNITED RENTALS: Cerberus Deal Prompts Moody's to Review Ratings
---------------------------------------------------------------
Moody's Investors Service has placed the ratings of United Rentals
(North America), Inc. and United Rentals Trust I under review for
possible downgrade. The review follows the announcement by the
parent holding company, United Rentals, Inc., that it has signed a
definitive merger agreement to be acquired by affiliates of
Cerberus Capital Management, L.P. in a transaction valued at $6.6
billion, including debt. United Rentals' board has approved the
transaction and has recommended approval of the transaction by
shareholders. Under the merger agreement, United Rentals may
continue to solicit proposals for alternate transactions through
August 31.
Ratings under review are:
* corporate family ratings -- B1;
* probability of default -- B1;
* senior secured credit facility -- Ba1 (LGD2, 12%);
* senior notes -- B1 (LGD3, 45%);
* senior subordinated notes -- B3 (LGD5, 81%);
* quarterly income preferred securities B3 (LGD6, 96%).
The company's speculative grade liquidity rating remains at the
SGL-2 level and is not affected by the current review.
Moody's review is focusing on the impact that the proposed
transaction will have on United Rentals' future capital structure,
financial strategy and credit metrics. The rating agency notes,
however, that certain debts including the credit facility, senior
notes and senior subordinated notes contain change of control
provisions and to the extent that any existing obligations are
repaid under change of control provisions Moody's will withdraw
the respective ratings.
United Rentals, Inc. is the world's largest equipment rental
company. URI operates approximately 700 rental locations
throughout the United States, Canada and Mexico. The company
maintains over 20,000 classes of rental equipment having an
original equipment cost of $4 billion.
UNITED RENTALS: Fitch Retains Negative Watch on Cerberus Deal
-------------------------------------------------------------
Fitch Ratings is maintaining its Rating Watch Negative on United
Rentals Inc. following the announcement by the company that it has
signed a definitive merger agreement to be acquired by affiliates
of Cerberus Capital Management, L.P., in a transaction valued at
approximately $6.6 billion. The agreement does provide URI with
the opportunity to solicit bids from additional parties until
Aug. 31, 2007.
On April 10, 2007 Fitch placed ratings of URI and United Rentals
North America, Inc. on Rating Watch Negative after the company's
board of directors approved exploring strategic options, which
included a potential sale. At that time, Fitch believed that
completing a sale without negatively affecting URI's financial
profile would be difficult and likely result in a ratings
downgrade. As this scenario is expected to play out, Fitch will
likely downgrade URI's long-term Issuer Default Rating by at least
one notch to the 'B' category.
A downgrade by more than one notch and the relative notching
between classes of debt, will consider the degree of incremental
leverage, the amount of secured debt employed and the nature and
volume of unencumbered assets that remain available to unsecured
creditors. URI's senior secured and subordinated ratings will be
notched relative to the company's IDR based on Fitch's assessment
of expected recovery levels for each class of creditor. Although
it is possible that a competing bid from a higher rated entity may
emerge, Fitch believes that such an outcome is unlikely.
Fitch maintains these ratings on Rating Watch Negative:
United Rentals, Inc.
-- Long Term Issuer Default Rating: 'BB-'.
United Rentals (North America), Inc.
-- Long Term Issuer Default Rating: 'BB-';
-- Senior Secured: 'BB';
-- Senior Unsecured: 'BB-';
-- Subordinated Debt: 'B'.
US ENERGY: Retains Jefferies & Company as Financial Advisor
-----------------------------------------------------------
U.S. Energy Systems Inc. has retained Jefferies & Company Inc.,
completing its search for an independent third party financial
advisor to assist USEY in its evaluation of its existing financing
as well as other strategic alternatives available to the company.
U.S. Energy Systems Inc. -- http://www.useyinc.com/-- (Nasdaq:
USEY) owns of green power and clean energy and resources. USEY
owns and operates energy projects in the United States and United
Kingdom that generate electricity, thermal energy and gas
production.
The company has a 100% interest in U.S. Energy Biogas Corp., which
owns and operates 23 landfill gas to energy projects in the United
States, 20 of which produce electricity and three of which sell
landfill gas as an alternative to natural gas. The company also
has a 100% interest in Plymouth Envirosystems Inc., which owns a
50% interest in Plymouth Cogeneration Limited Partnership.
Plymouth Cogeneration Limited Partnership owns and operates a
combined heat and power plant in Massachusetts that produces
1.2MWs of electricity and 7 MWs of heat. The company further has
a 79% interest in GBGH LLC, which owns energy assets and mineral
rights in the United Kingdom including a 42MW gas-fired power
plant and gas licenses for about 100,000 acres of onshore
natural gas properties and mineral rights in North Yorkshire,
England. GBGH is the parent company of UK Energy Systems Ltd.
* * *
As reported in the Troubled Company Reporter on June 26, 2007,
U.S. Energy Systems Inc. had reported that it has insufficient
funds to make certain capital contributions required under the UK
financing arrangements between September and December of 2007.
If the UK financing parties were to declare the UK financing
arrangements in default and exercise remedies, such action could
involve foreclosure on substantially all of the company's assets
and would have a material adverse effect on the company. In that
circumstance, the company is unable to provide assurances that it
would be able to avoid bankruptcy or insolvency proceedings.
VERTIS COMMUNICATIONS: Signs Merger Pact with American Color
------------------------------------------------------------
Vertis Communications, formerly Vertis Inc., and American Color
Graphics signed a letter of intent to merge the operations of ACG,
one of the largest printing and premedia companies in North
America, into Vertis' nationwide marketing and printing services
platform.
The combined company will be led by Mike DuBose, chairman and
chief executive officer of Vertis.
Steve Dyott, ACG's current CEO, is expected to remain with the
combined company to help with the transition and integration of
the two companies.
As a result of the merger, the owners of ACG will receive 10% of
the combined company's common equity and 8% of the mezzanine
subordinated notes of Vertis Holdings. At the closure of the
merger, ACG will become a wholly-owned subsidiary of Vertis.
Mr. DuBose said, "This acquisition will bring together two
industry leaders and we expect it to be well received by our
clients and stakeholders. Our commitment to our customers'
success will be further enhanced in the combined organization as a
result of the increased talent, financial strength, technology and
other resources of a larger Vertis. This combination will allow
us to better address today's advertising insert and premedia
services marketplace as well as further complement Vertis' Direct
Marketing, Media Services, Technology and Creative Service
businesses."
He continued, "Vertis will now have a significantly larger
footprint to better serve existing and future clients. We look
forward to working with the ACG management team to finalize
integration plans as well as realize improvements in cost
efficiencies and further enhancements in product breadth,
innovation and customer service."
The two privately held companies have complementary service
offerings and clients, promoting the combined organization's
expertise in advertising inserts and premedia services. The
merger will integrate ACG's eight production facilities, with
capabilities in commercial offset and flexographic printing, as
well as six premedia service centers into Vertis. Vertis believes
that the combined company will realize significant synergies as
the operations are restructured to increase operational
efficiencies and improve service offerings across the platform and
product lines.
ACG's 2007 revenues were $445 million, while earnings before
interest, taxes, depreciation, and amortization were $38 million
for the twelve months ended March 31, 2007. On a pro forma basis,
the combined entities would have had revenues of $1.9 billion and
adjusted earnings before interest, taxes, depreciation, and
amortization of $197 million for the twelve months ended March 31,
2007, excluding any potential synergies.
The closing of the transaction is subject to the execution of a
mutually acceptable definitive merger agreement, the satisfaction
of customary closing conditions, and the receipt of necessary
approvals. Vertis and ACG expect to sign a definitive merger
agreement by Aug. 13, 2007. The merger will be subject to the
amendment, refinancing, or repayment in full of the parties'
senior secured credit facilities and the successful exchange of
the parties' outstanding notes.
About American Color Graphics
Headquartered in Brentwood, Tenn., American Color Graphics, Inc.
-- http://www.americancolor.com/-- is engaged in printing of
advertising inserts and newspaper products in the United States.
The company is a wholly owned subsidiary of ACG Holdings, Inc.
The company operates in two segments: print and premedia services.
Customers for its print services include about 230 national and
regional retailers and approximately 155 newspapers. The premedia
services segment provides its customers with a solution for the
preparation and management of materials for printing, including
the design, creation and capture; manipulation; storage;
transmission, and distribution of images.
About Vertis Communications
Vertis Communications, fka Vertis Inc., a wholly owned subsidiary
of Vertis Holdings, -- http://www.vertisinc.com/-- is a marketing
partner to a number of clients, including several Fortune 500
companies. It offers consulting, creative, research, direct mail,
media, technology and production services. It also provides print
advertising, direct marketing solutions, and similar services to
America's retail and consumer services companies.
Vertis Inc. posted total stockholders' deficit as of Dec. 31,
2006, amounting to $550.1 million, resulting from total assets of
$844.7 million and total liabilities of $1.4 million.
* * *
As reported in the Troubled Company Reporter on April 9, 2007,
Standard & Poor's Ratings Services placed its ratings on Vertis
Inc., including the 'B-' corporate credit rating, on CreditWatch
with negative implications.
WILD WEST: Wants Adams Jones as Special Counsel
-----------------------------------------------
Wild West World LLC asks the United States Bankruptcy Court for
the District of Kansas for permission to employ Adams Jones Law
Firm P.A., as its special counsel.
As the Debtor's special counsel, the firm will represent for all
non-bankruptcy related legal work, including all general corporate
legal services and any sales negotiations.
The Debtor tells the Court that the firm holds a $26,155
prepetiton claim. The Debtor did not disclosed the firm's
compensation rates.
Mert F. Buckely, Esq., and Sabrina K. Standifer, Esq., the
attorneys of the firm, assures the Court that they do not hold
any interest adverse to the Debtor and is a "disinterested person"
as defined in Section 101(14) of the Bankruptcy Code.
The firm's attorneys can be reached at:
Mert F. Buckely, Esq.,
Sabrina K. Standifer, Esq.
Adams Jones Law Firm P.A.
1635 N. Waterfront Parkway, Suite 200
Wichita, KS 67206
Tel: (316) 265-8591
Fax: (316) 265-9719
http://www/adamsjones.com/
Headquartered in Valley Center, Kansas, Wilde West World LLC
operates an amusement park business. The company filed for
Chapter 11 protection on July 9, 2007 (Bankr. Kans. Case No.:
07-11620). Edward J. Nazar, Esq., at Redmond & Nazar, LLP
represents the Debtor in its restructuring efforts. No Official
Committe of Unsecured Creditors has been appointed to date to
this case. When the Debtor filed for bankruptcy, it listed
assets and debts between $1 Million to $100 Million.
ZACHARY CASEY: Case Summary & 16 Largest Unsecured Creditors
------------------------------------------------------------
Debtor: Zachary Alan Casey
81242 Highway 1083
Bush, LA 70431
Bankruptcy Case No.: 07-11359
Chapter 11 Petition Date: July 20, 2007
Court: Eastern District of Louisiana (New Orleans)
Judge: Jerry A. Brown
Debtor's Counsel: Claude C. Lightfoot, Jr., Esq.
424 Gravier Street, Third Floor
New Orleans, LA 70130
Tel: (504) 838-8571
Fax: (504) 838-8572
Estimated Assets: Less than $10,000
Estimated Debts: $1 Million to $100 Million
Debtor's 16 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
J.P. Morgan Chase Bank, judgment on $8,332,680
N.A. guaranty of
c/o Brett P. Furr Pelts & Skins,
Taylor, Porter, Brooks L.L.C.
& Phillips, L.L.P.
451 Florida Street,
8th Floor
Baton Rouge, LA 70801
Statewide Bank promissory note $530,000
202 Lions Drive for mortgage on
Covington, LA 70433 81242 Highway 1083,
Bush, LA
Steffes, Vigniello & legal fees $35,922
McKenzie
13702 Coursey Boulevard,
Suite 3
Baton Rouge, LA 70817
R.T. Casey, Inc. 20% stock interest $30,000
in R.T. Casey, Inc.
Hamilton, Brown & Babst legal fees $21,652
A La Carte Foods, Inc. guaranty of Pelts $16,581
& Skins, L.L.C.
Susan Casey personal loan $16,000
Volkswagen Credit guarantee of $15,000
debt for Skyfire
Theatre
Harold Asher legal/accounting $14,500
fees
Chase Card Services credit card $12,500
purchases
Bank of America credit card $8,650
purchases for Pelts
& Skins, L.L.C.
Whitney National Bank credit card $6,100
purchases for
Pelts & Skins,
L.L.C.
LaPorte, Sehrt, Romig & accounting $4,880
Hand, C.P.A.
Drive Insurance auto insurance $446
premiums
Pelts & Skins, L.L.C. claims available unknown
to Pelts & Skins,
L.L.C.
Warren J. Salles guaranty of expired unknown
Skyfire Theatre
lease
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
July 25-28, 2007
AMERICAN BANKRUPTCY INSTITUTE
12th Annual Southeast Bankruptcy Workshop
The Sanctuary, Kiawah Island, South Carolina
Contact: http://www.abiworld.org/
July 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
TBA, Arizona
Contact: http://www.turnaround.org/
July 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Golf Social Event
Crystal Lake Golf Club, Lakeville, Minnesota
Contact: 612-708-0258 or http://www.turnaround.org/
July 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Colorado Chapter Annual Golf Tournament
Kings Deer Golf Club, Monument, Colorado
Contact: 303-847-5026 or http://www.turnaround.org/
July 28, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Lake Tahoe Cruise: Getting to Know Your Nevada Associations
Zephyr Cove, Lake Tahoe, Nevada
Contact: 702-952-2480 or http://www.turnaround.org/
July 31, 2007
BEARD AUDIO CONFERENCES
Non-Traditional Lenders and the Impact of
Loan-to-Own Strategies on the
Restructuring Process
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
July 31, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Enterprise Florida: Improving Florida's
Business Climate and Helping Florida Companies
Market Overseas
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Aug. 2, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA-SA Board Meeting
Deloitte Place, Sandton, South Africa
Contact: http://www.turnaround.org/
Aug. 3, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Women's Spa Event
Short Hills Hilton, Livingston, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Aug. 9, 2007
BEARD AUDIO CONFERENCES
Technology as a Competitive Advantage For Today's Legal
Processes
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
Aug. 9-11, 2007
AMERICAN BANKRUPTCY INSTITUTE
3rd Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Contact: http://www.abiworld.org/
Aug. 9, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
Brown Bag Lunch
Blum Shapiro & Co., West Hartford, Connecticut
Contact: http://www.iwirc.org/
Aug. 10, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Special Olympics Sportsman's Lunch
Sofitel, Brisbane, Queensland, Australia
Contact: 1300 303 863 or http://www.turnaround.org/
Aug. 10, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, Illinois
Contact: http://www.turnaround.org/
Aug. 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Colorado Chapter Annual Brew Pub & Pool Social
Wynkoop Brewing Company, Denver, Colorado
Contact: 303-847-5026 or http://www.turnaround.org/
Aug. 16, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Young Professionals Networking Event
TBA, Philadelphia, Pennsylvania
Contact: 215-657-5551 or http://www.turnaround.org/
Aug. 17, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Fishing Trip
Point Pleasant, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Aug. 23-26, 2007
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Drake Hotel, Chicago, Illinois
Contact: http://www.nabt.com/
Aug. 24, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Fishing Trip
Point Pleasant, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Aug. 28, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Healthcare Panel
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
Aug. 29-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
3rd Annual Northeast Regional Conference
Gideon Putnam Resort and Spa, Saratoga Springs,
New York
Contact: http://www.turnaround.org/
Sept. 6, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Event
Carnelian Room, San Francisco, California
Contact: 510-346-6000 ext 226 or
http://www.turnaround.org/
Sept. 6-7, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Complex Financial Restructuring Program
Four Seasons, Las Vegas, Nevada
Contact: http://www.turnaround.org/
Sept. 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Southwest Bankruptcy Conference
Four Seasons, Las Vegas, Nevada
Contact: http://www.abiworld.org/
Sept. 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Annual Networking at the Yards
Oriole Park at Camden Yards, Baltimore, Maryland
Contact: 215-657-5551 or http://www.turnaround.org/
Sept. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Body of Knowledge - CTP Review Class
Chicago, Illinois
Contact: http://www.turnaround.org/
Sept. 18, 2007
TURNAROUND MANAGEMENT ASSOCIATION
14th Annual Connecticut Children's Medical Center
Fundraiser Golf Outing
Woodbridge Country Club, Woodbridge, Connecticut
Contact: 203-265-2048 or http://www.turnaround.org/
Sept. 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Buying and Selling Troubled Companies
Marriott North, Fort Lauderdale, Florida
Contact: http://www.turnaround.org/
Sept. 20, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Lean Transformation at Current and Other Case Studies
Denver Athletic Club, Denver, Colorado
Contact: http://www.turnaround.org/
Sept. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Retail Panel
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Sept. 26, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Joint Educational & Networking Reception
TBD, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Sept. 26-27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Florida Annual Golf Tournament
Tampa, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Sept. 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
TBA, Arizona
Contact: http://www.turnaround.org/
Sept. 27-30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
8th Annual Cross Border Business
Restructuring & Turnaround Conference
Contact: http://www.turnaround.org/
Oct. 2, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Bridgewater, New Jersey
Contact: 908-575-7333 or http://www.turnaround.org/
Oct. 4, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Event
Carnelian Room, San Francisco, California
Contact: 510-346-6000 ext 226 or
http://www.turnaround.org/
Oct. 5, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI/GULC "Views from the Bench"
Georgetown University Law Center
Washington, District of Columbia
Oct. 9-10, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING
CONFEDERATION
IWIRC Annual Fall Conference
Orlando, Florida
Contact: http://http://www.iwirc.org//
Oct. 10-13, 2007
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
81st Annual National Conference of Bankruptcy Judges
Contact: http://www.ncbj.org/
Oct. 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Oct. 11, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Winn Dixie Bankruptcy
University Club, Jacksonville, Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Oct. 12, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
Presentation by George F. Will: The Political Argument Today
Orlando, Florida
Contact: http://www.ardent-services.com/
Oct. 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
ABI Educational Program at NCBJ
Orlando World Marriott, Orlando, Florida
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 16-19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Copley Place
Boston, Massachussets
Contact: 312-578-6900; http://www.turnaround.org/
Oct. 23, 2007
BEARD AUDIO CONFERENCES
Partnerships in Bankruptcy
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
Oct. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Capital Markets Case Study
Seattle, Washington
Contact: http://www.turnaround.org/
Oct. 25, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
Contact: http://www.turnaround.org/
Oct. 26, 2007
AMERICAN BANKRUPTCY INSTITUTE
International Insolvency Symposium
Hotel Adlon Kempinski, Berlin, Germany
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
Centre Club, Tampa, Florida
Contact: 561-882-1331; http://www.turnaround.org/
Oct. 30, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Crisis Communications With Employees, Vendors and Media
Centre Club, Tampa, Florida
Contact: http://www.turnaround.org/
Nov. 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Event
Carnelian Room, San Francisco, California
Contact: 510-346-6000 ext 226 or
http://www.turnaround.org/
Nov. 1, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Breakfast
TBD, Hackensack, New Jersey
Contact: 908-575-7333; http://www.turnaround.org/
Nov. 12, 2007
AMERICAN BANKRUPTCY INSTITUTE
Consumer Bankruptcy Conference
Marriott, Troy, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
Nov. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Holiday Mixer
McCormick & Schmick's, Las Vegas, Nevada
Contact: 702-952-2480 or http://www.turnaround.org/
Nov. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Aloha Airlines Story
Bankers Club, Miami, Florida
Contact: http://www.turnaround.org/
Nov. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Australia 4th Annual Conference and Gala Dinner
Hilton, Sydney, Australia
Contact: http://www.turnaround.org/
Nov. 14, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Dinner
TBA, South Florida
Contact: 561-882-1331 or http://www.turnaround.org/
Nov. 15, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Portland Holiday Party
University Club, Portland, Oregon
Contact: 206-223-5495; http://www.turnaround.org/
Nov. 22, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Networking Mixer
TBA, Vancouver, British Columbia
Contact: 206-223-5495; http://www.turnaround.org/
Nov. 27, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon - Real Estate Panel
Citrus Club, Orlando, Florida
Contact: http://www.turnaround.org/
Nov. 29, 2007
INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION
Holiday Gala
Yale Club, New York, New York
Contact: http://www.iwirc.org/
Nov. 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Special Speaker
TBD, New Jersey
Contact: 908-575-7333; http://www.turnaround.org/
Nov. 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Special Speaker
Hilton, Sydney, Australia
Contact: http://www.turnaround.org/
Nov. 29, 2007
TURNAROUND MANAGEMENT ASSOCIATION
TMA Arizona Chapter Meeting
Contact: http://www.turnaround.org/
Dec. 6, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Seattle Holiday Party
Athletic Club, Seattle, Washington
Contact: 206-223-5495; http://www.turnaround.org/
Dec. 6-8, 2007
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Westin Mission Hills Resort, Rancho Mirage, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Holiday Extravaganza - TMA & CFA
Georgia Aquarium, Atlanta, Georgia
Contact: 678-795-8103 or http://www.turnaround.org/
Dec. 13, 2007
TURNAROUND MANAGEMENT ASSOCIATION
Holiday Extravaganza - TMA & CFA
Georgia Aquarium, Atlanta, Georgia
Contact: 678-795-8103 or http://www.turnaround.org/
Dec. 19, 2007
TURNAROUND MANAGEMENT ASSOCIATION
South Florida Dinner
TBA, South Florida
Contact: 561-882-1331; http://www.turnaround.org/
Jan. 10, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Luncheon
University Club, Jacksonville, Florida
Feb. 7, 2008
TURNAROUND MANAGEMENT ASSOCIATION
Breakfast Event
Carnelian Room, San Francisco, California
Contact: 510-346-6000 ext 226 or
http://www.turnaround.org/
Mar. 25-29, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Ritz Carlton Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Apr. 3-6, 2008
AMERICAN BANKRUPTCY INSTITUTE
26th Annual Spring Meeting
The Renaissance, Washington, District of Columbia
Contact: http://www.abiworld.org/
Apr. 25-27, 2008
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Spring Seminar
Eldorado Hotel & Spa, Santa Fe, New Mexico
Contact: http://www.nabt.com/
May 1-2, 2008
AMERICAN BANKRUPTCY INSTITUTE
Debt Symposium
Hilton Garden Inn, Champagne/Urbana, Illinois
Contact: 1-703-739-0800; http://www.abiworld.org/
June 4-7, 2008
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
24th Annual Bankruptcy & Restructuring Conference
J.W. Marriott Spa and Resort, Las Vegas, Nevada
Contact: http://www.airacira.org/
June 12-14, 2008
AMERICAN BANKRUPTCY INSTITUTE
15th Annual Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: http://www.abiworld.org/
July 10-13, 2008
TURNAROUND MANAGEMENT ASSOCIATION
16th Annual Northeast Bankruptcy Conference
Ocean Edge Resort
Brewster, Massachussets
Contact: http://www.turnaround.org/
July 31 - Aug. 2, 2008
AMERICAN BANKRUPTCY INSTITUTE
4th Annual Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay
Cambridge, Maryland
Contact: http://www.abiworld.org/
Aug. 16-19, 2008
AMERICAN BANKRUPTCY INSTITUTE
13th Annual Southeast Bankruptcy Workshop
Ritz-Carlton, Amelia Island, Florida
Contact: http://www.abiworld.org/
Aug. 20-24, 2008
NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES
NABT Convention
Captain Cook, Anchorage, Alaska
Contact: http://www.nabt.com/
Sept. 24-27, 2008
NATIONAL CONFERENCE OF BANKRUPTCY JUDGES
National Conference of Bankruptcy Judges
Scottsdale, Arizona
Contact: http://www.ncbj.org/
Oct. 28-31, 2008
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott New Orleans, Louisiana
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 3-5, 2008
AMERICAN BANKRUPTCY INSTITUTE
20th Annual Winter Leadership Conference
Westin La Paloma Resort & Spa
Tucson, Arizona
Contact: http://www.abiworld.org/
May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, Maryland
Contact: http://www.abiworld.org/
June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
BANKRUPTCY PROFESSIONALS
8th International World Congress
TBA
Contact: http://www.insol.org/
Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
BEARD AUDIO CONFERENCES
2006 BACPA Library
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com;
http://researcharchives.com/t/s?20fa
BEARD AUDIO CONFERENCES
BAPCPA One Year On: Lessons Learned and Outlook
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Calpine's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changes to Cross-Border Insolvencies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Changing Roles & Responsibilities of Creditors' Committees
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Clash of the Titans -- Bankruptcy vs. IP Rights
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Coming Changes in Small Business Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Dana's Chapter 11 Filing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Deepening Insolvency - Widening Controversy: Current Risks,
Latest Decisions
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Diagnosing Problems in Troubled Companies
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Claims Trading
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Market Opportunities
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Distressed Real Estate under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Employee Benefits and Executive Compensation under the New
Code
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Equitable Subordination and Recharacterization
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Fundamentals of Corporate Bankruptcy and Restructuring
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Handling Complex Chapter 11
Restructuring Issues
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Healthcare Bankruptcy Reforms
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
High-Yield Opportunities in Distressed Investing
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Homestead Exemptions under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Hospitals in Crisis: The Insolvency Crisis Plaguing
Hospitals Across the U.S.
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
IP Rights In Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
KERPs and Bonuses under BAPCPA
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Partnerships in Bankruptcy: Unwinding The Deal
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Privacy Rights, Protections & Pitfalls in Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Real Estate Bankruptcy
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Reverse Mergers-the New IPO?
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Second Lien Financings and Intercreditor Agreements
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Surviving the Digital Deluge: Best Practices in E-Discovery
and Records Management for Bankruptcy Practitioners
and Litigators
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Technology as a Competitive Advantage For Today's Legal
Processes
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Twenty-Day Claims
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
Validating Distressed Security Portfolios: Year-End Price
Validation and Risk Assessment
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
BEARD AUDIO CONFERENCES
When Tenants File -- A Landlord's BAPCPA Survival Guide
Audio Conference Recording
Contact: 240-629-3300;
http://www.beardaudioconferences.com/
The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday. Submissions via e-mail
to conferences@bankrupt.com are encouraged.
*********
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.
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