T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, November 7, 2007, Vol. 11, No. 264 Headlines ACA ABS: Moody's Junks Ratings on Five Note Classes ACA ABS: Moody's Junks Ratings on Three Note Classes ACA AQUARIUS: Moody's Junks Ratings on Two Note Classes ACCURIDE CORP: Moody's Holds B1 Corporate Family Rating ADAMS SQUARE: Moody's Junks Ratings on Three Note Classes ADVANCED MARKETING: Wants Until Nov. 30 to Decide on Lone Lease AIR MARSHALL ISLANDS: Grounded Planes May Lead to Bankruptcy ALTERNATIVE LOAN: $62,632 Write-Down Cues S&P's Default Rating APRIA HEALTHCARE: Commences $265 Mil. Offering of Senior Notes APRIA HEALTHCARE: S&P Rates Proposed $265MM Senior Notes at BB- ASSET BACKED: Fitch Rates $30 Mil. Class B-1 Certificates at BB+ ATHLETES WORLD: Files for Bankruptcy Protection Under CCAA AUTOMOTIVE GLASS: Aggressive Fin'l Profile Cues S&P's "B+" Rating BALLY TECHNOLOGIES: S&P Lifts Credit and Debt Ratings to B+ BARNERT HOSPITAL: Files Schedules of Assets & Liabilities BARNERT HOSPITAL: Taps Fox Rothschild as Special Labor Counsel BARNERT HOSPITAL: Taps Steven Finkelstein as Collections Counsel BEAR STEARNS: Moody's Takes Rating Actions on 18 Deals BEAZER HOMES: Expects $230 Million Pre-Tax Charges for 4th Quarter BIEHLER COMPANIES: Jim Biehler's Group Ponders a Buyout BLUE EDGE: Moody's Cuts Ratings on Three Note Classes to Low-B BOHUMIR MARIK: Case Summary & 14 Largest Unsecured Creditors BOSTON SCIENTIFIC: Selling Cardiac & Vascular Biz for $750 Mil. BROOKVILLE CDO: Moody's Junks Ratings on Two Note Classes C-BASS CBO: Moody's Cuts Rating on $10 Mil. Class D Notes to Ba2 CAIRN MEZZ: Moody's Cuts Ratings on Four Note Classes to Low-B CATHOLIC CHURCH: Judge Adler Dismisses San Diego's Chapter 11 Case CETUS ABS: Moody's Junks Ratings on Five Note Classes CETUS ABS: Moody's Junks Ratings on Three Note Classes CETUS ABS: Moody's Junks Ratings on Two Note Classes CETUS ABS: Moody's Downgrades Ratings on Two Note Classes to Low-B CII CARBON: Prices $235 Million Senior Subordinated Bonds CITIUS II: Moody's Cuts Rating on $19 Mil. Class D Notes to Ba3 COGNIGEN NETWORKS: Buying Commission River Thru 16 Million Shares COLDWATER CDO: Moody's Cuts Rating on Class C Notes to B1 COLUMBUSNOVA CLO: S&P Puts 'BB' Prelim Rating on $11.25 Mil. Notes COUNTRYWIDE FINANCIAL: Extends Stock Options for Eight Executives DELPHI CORP: Equity Panel Balks at Disclosure Statement Changes ENERGY PARTNERS: Completes Exchange Offer for Senior Notes FEDERAL GYPSUM: Court Approves $1.5 Million DIP Financing FEDERAL-MOGUL: Plan Proponents Incorporate Insurer Settlements FORD MOTOR: UAW Members to Vote on New Labor Pact on Sunday FORD MOTOR: S&P Retains 'B' Rating Under Positive CreditWatch GEMSTONE CDO: Moody's Junks Ratings on Three Note Classes GENERAL MOTORS: Expects $39 Billion Non-Cash Charge in 3rd Quarter GEORGE COOK III: Case Summary & 11 Largest Unsecured Creditors GMAC COMMERCIAL: Adequate Credit Support Cues S&P to Hold Ratings GRAHAM PACKAGING: Sept. 30 Balance Sheet Upside-Down by $616 Mil. GREG JAMES: Case Summary & 20 Largest Unsecured Creditors GSC ABS: Moody's Junks Ratings on Three Note Classes GULF STREAM: Moody's Junks Ratings on Four Note Classes GUS PAPASTEFANOU: Case Summary & 17 Largest Unsecured Creditors HABERSHAM MILL: Case Summary & 15 Largest Unsecured Creditors HIGHRIDGE ABS: Moody's Cuts Ratings on Two Note Classes to Low-B IAC/INTERACTIVECORP: Earns $71.7 Million in Third Quarter 2007 IAC/INTERACTIVECORP: Plans to Split Into Five Public Companies IAC/INTERACTIVECORP: Planned Separation Cues S&P to Cut Rating INDYMAC BANCORP: Declares $0.25 Cash Dividend in 4th Quarter INDYMAC BANCORP: Posts $202.7 Million Net Loss in Third Quarter INDYMAC ABS: Fitch Junks Ratings on $35.1 Mil. Cert. Classes INNOTRAC CORP: Court Extends IPOF Stock Trading Restriction IWT TESORO: Can Get $3.3 Mil. DIP Financing from Bank of America IWT TESORO: Court Okays Mahoney Cohen as Panel's Financial Advisor JAMES RIVER: Posts $9.7 Million Net Loss in Quarter Ended Sept. 30 JP MORGAN: S&P Affirms Ratings on 19 Certificate Classes KAMP RE: S&P May Assign Default Rating on $190 Million Notes KEFTON CDO: Moody's Junks Ratings on Three Note Classes KENT FUNDING: Moody's Cuts Rating on $11 Mil. Class D Notes to Ba3 KESSEL'S COLLECTIBLES: Mulls Business Closure on January 2008 KEY ENERGY: Moody's Places Corporate Family Rating at Ba3 KEY ENERGY: S&P Assigns 'B+' Credit Rating with Stable Outlook KI SON: Case Summary & 11 Largest Unsecured Creditors LATAONE INC: Case Summary & 19 Largest Unsecured Creditors LEXINGTON CAPITAL: Moody's Junks Ratings on Two Note Classes LIBERTAS PREFERRED: Moody's Cuts Ratings on Two Notes to Low-B LIBERTAS PREFERRED: Moody's Junks Rating on Class VIII Notes LONG HILL: Moody's Assigns Low-B Ratings on Two Note Classes LUNAR FUNDING: Moody's Lowers Rating on 25 Million Notes to Ba2 MARCOS GARCIA: Case Summary & 11 Largest Unsecured Creditors MAXIM HIGH: Moody's Cuts Ratings on Two Note Classes to Low-B MCMORAN EXPLORATION: S&P Junks Rating on Proposed $400 Mil. Notes MERRILL LYNCH: S&P Lowers Ratings on 20 Certificate Classes MYSTIC POINT: Moody's Junks Rating on $6 Million Class E Notes NATIONAL EASTERN: Court OKs Chorches & Novak as Bankruptcy Counsel NEPTUNE CDO IV: Moody's Junks Rating on Class E Notes NEPTUNE CDO V: Moody's Junks Ratings on Three Note Classes NEUMANN HOMES: Bank Wants Stay Lifted to Secure Collateral NEUROBIOLOGICAL TECH: Completes $60 Million Common Stock Offering NEW CENTURY: Court Expands O'Melveny Retention to Include NCWC NEW CENTURY: Court Fixes December 14 as NCWC's General Bar Date NEW CENTURY: Moves 2007 Annual Meeting of Stockholders to December NEW YORK RACING: Wants $1.6 Billion Tax Dispute With IRS Settled NRG ENERGY: Commences Cash Offer for $4.7 Billion of Senior Notes NEW YORK DELI: Case Summary & 15 Largest Unsecured Creditors OFFICEMAX INC: Improved Credit Metrics Cues S&P's "BB-" Rating OPEN TEXT: Earns $7.8 Million in First Quarter Ended Sept. 30 PACIFIC LUMBER: Judge Houser Appointed as Mediator PALMER ABS: Moody's Cuts Ratings on Two Note Classes to Low-B PEABODY ENERGY: Completes Spin-Off of Two Coal Assets & Operations PLAYLOGIC ENTERTAINMENT: Closes $12.3MM Equity Private Offering POGO PRODUCING: Amends Tender Offer for Series of Senior Notes POLYMER GROUP: Plans to Sell 5.5 Million of Class A Common Stock QUAKER FABRIC: Court Okays J.H. Albert as Insurance Consultants ROCKFORD PRODUCTS: Can Use Lenders' Cash Collateral Until Nov. 16 ROYCE BERNARD: Case Summary & 20 Largest Unsecured Creditors SAINT AGNES: Case Summary & 11 Largest Unsecured Creditors SEMCO ENERGY: Cap Rock Deal Cues Moody's To Take Rating Actions SENTINEL MANAGEMENT: Panel Hires Trumbull as Communications Agent SINGA FUNDING: Moody's Cuts Ratings on Three Note Classes to Low-B SOLSTICE ABS: Negative Credit Migration Cues S&P to Lower Ratings SOLUTIA INC: Wants $713 Million Environmental Claims Reclassified SOUTH COAST: Moody's Cuts Rating on $5 Mil. Class E Notes to Ba2 SOUTH COAST: Moody's Junks Ratings on Three Note Classes SUN MICROSYSTEMS: Earns $89 Million in 1st Quarter Ended Sept. 30 TABS 2006-5: Moody's Junks Ratings on Five Note Classes TABS 2006-6: Moody's Junks Ratings on Six Note Classes TECHNO COMPEX: Case Summary & Two Largest Unsecured Creditors THERION BIOLOGICS: Foreclosure Sale of IP Slated for November 20 TRICADIA CDO: Moody's Reviews "Ba1" Rating on Class B-2L Notes URS CORP: Amends Pact with WGI to Raise Merger Consideration VERTICAL VIRGO: Moody's Cuts Ratings on Five Note Classes to Low-B VESCOR DEVELOPMENT: U.S. Trustee Unable to Appoint Committee VISION-CASTLE HILLS: Case Summary & 21 Largest Unsecured Creditors VISION DEVELOPMENT: Wants to Access CORUS Bank's Cash Collateral VOLANS FUNDING: Moody's Junks Ratings on Three Note Classes WELLCARE HEALTH: Earns $72.4 Million in Third Qtr. Ended Sept. 30 WESTAR ENERGY: Earns $91.5 Million in Third Quarter Ended Sept. 30 WISCONSIN AVENUE: Fitch Holds B Rating on $1.2MM Class C Certs. WR GRACE: Asbestos PI Committee & FCR File Reorganization Plan * Beard Group Announces New Audio Conference for November 15 * Hunton & Williams Adds David Wiles & Timothy Ryan as Partners * Michael Cole Named as Alvarez & Marsal's Managing Director * Thacher Proffitt Names V. Gerard Comizio as Chair of Trust * Non-Deferment of Dividend No Effect on Prior Ratings, Fitch Says * S&P Lowers Ratings on 46 Tranches from Nine CDO Transactions * Upcoming Meetings, Conferences and Seminar ********* ACA ABS: Moody's Junks Ratings on Five Note Classes --------------------------------------------------- Moody's Investors Service downgraded and left on review for possible downgrade these notes issued by ACA ABS 2007-1 Ltd. -- $930,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: A1, on review for possible downgrade -- $125,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: A3, on review for possible downgrade -- $198,000,000 Class A2 Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Baa3, on review for possible downgrade -- $72,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: A2 Current Rating: Caa1, on review for possible downgrade -- $30,000,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa1 Current Rating: Caa2, on review for possible downgrade -- $40,000,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa2 Current Rating: Caa3, on review for possible downgrade Moody's also announced that it has downgraded these notes. -- $22,500,000 Class B3 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa3 Current Rating: Ca -- $22,500,000 Class C Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Ba2 Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of asset- backed securities. ACA ABS: Moody's Junks Ratings on Three Note Classes ---------------------------------------------------- Moody's Investors Service downgraded and left on review for possible downgrade these notes issued by ACA ABS 2006-2, Limited. -- $460,000,000 Class A-1LA Floating Rate Notes Due January 2047 Prior Rating: Aaa, on review for possible downgrade Current Rating: Baa3, on review for possible downgrade -- $102,000,000 Class A-1LB Floating Rate Notes Due January 2047 Prior Rating: Aaa, on review for possible downgrade Current Rating: B3, on review for possible downgrade -- $72,000,000 Class A-2L Floating Rate Notes Due January 2047 Prior Rating: Aa2, on review for possible downgrade Current Rating: Caa3, on review for possible downgrade Moody's also announced that it has downgraded these notes -- $29,000,000 Class A-3L Deferrable Floating Rate Notes Due January 2047 Prior Rating: Baa3, on review for possible downgrade Current Rating: Ca -- $45,000,000 Class B-1L Floating Rate Notes Due January 2047 Prior Rating: B3, on review for possible downgrade Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of ABS's. ACA AQUARIUS: Moody's Junks Ratings on Two Note Classes ------------------------------------------------------- Moody's Investors Service placed these notes issued by ACA Aquarius 2006-1, Ltd. on review for possible downgrade: -- $1,266,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2046 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $255,000,000 Class A1J Senior Secured Floating Rate Notes Due 2046 Prior Rating: Aaa, on review for possible downgrade Current Rating: Aa3, on review for possible downgrade -- $177,000,000 Class A2 Senior Secured Floating Rate Notes Due 2046 Prior Rating: Aa2, on review for possible downgrade Current Rating: Baa1, on review for possible downgrade -- $80,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2046 Prior Rating: A2, on review for possible downgrade Current Rating: Baa3, on review for possible downgrade -- $17,500,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2046 Prior Rating: Baa1, on review for possible downgrade Current Rating: Ba3, on review for possible downgrade -- $74,500,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2046 Prior Rating: Ba3 Current Rating: Caa3, on review for possible downgrade Moody's also announced that it has downgraded these notes: -- $20,000,000 Class B3 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2046 Prior Rating: B3 Current Rating: C According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of residential mortgage-backed securities assets. ACCURIDE CORP: Moody's Holds B1 Corporate Family Rating ------------------------------------------------------- Moody's Investors Service affirmed Accuride Corporation's Corporate Family rating of B1, but changed the ratings' outlook to negative from stable. The action follows the company's announcement of third quarter results below previous expectations and its lowered earnings and cash flow guidance for the balance of 2007. Those developments reflect a steeper decline in North American commercial vehicle production than earlier assumptions, lower volume's experienced in its commercial trailer market, and indicate a protracted period of weak demand continuing into 2008. Consequently, although the company had noticeably reduced levels of indebtedness during the recent peak in the commercial vehicle sector, coverage and leverage ratios are likely to deteriorate over the near term. Improved performance will be dependent upon a resumption of activity levels in 2008 which could be affected by replacement demand returning to more normalized conditions as well as the approaching next stage of EPA emission standards in 2010. From December 2005 through September 2007, Accuride reduced its balance sheet debt by roughly $125 million through application of strong free cash flow against its borrowings. In 2006 it generated EBITA margins of 10.8%, EBITA/interest coverage of 2.6 times and its debt/EBITDA stood at 3.3 times; all considered strong for the B1 Corporate Family rating. However, profitability in 2007 has declined substantially as production volumes of new commercial vehicles has fallen, and product sales into the market for commercial trailers have been impacted by weakness in ton- miles driven, extended periods of trailer utilization, and the financial condition of fleet operators. This has led to a deterioration in Accuride's performance with third quarter EBITA margins declining to 1.3 %, and EBITA coverage of interest falling to under 1 time. While 2007 was expected to involve lower production volumes of heavy and medium-duty diesel powered commercial vehicles, actual levels have been lower than earlier estimates and industry forecasts for 2008 have indicated material recovery is unlikely to be experienced until mid-year. Recovery in the trailer segment will be dependent upon healthier underlying levels of ton miles being driven and other macro- economic drivers. During this period of weaker activity, Accuride is unlikely to require any material increase in indebtedness caused by negative free cash flow. The company's liquidity profile includes a combination of cash on hand of $46 million at September 30 and access to its $125 million of revolving credit facilities, which were un-drawn at that date. However, measurements of profitability, leverage and coverage ratios will be adversely affected by the downturn which will persist for a longer period of time. This is likely to affect headroom under bank financial covenants, which in turn could constrain effective availability under the facilities to less than the full commitment. Moody's anticipates that Accuride will retain adequate liquidity during this period and be able to navigate through these challenges. Moreover, the company's fundamental business position has not changed. Accordingly, the rating agency affirmed Accuride's Corporate Family rating, but changed the outlook to negative to recognize a protracted period of debt protection measures weak for the current rating category and risks of additional deterioration should a cyclical rebound be delayed further in time. Ratings affirmed with updated loss given default assessments: Accuride Corporation: -- Corporate Family, B1 -- Probability of Default, B1 -- Senior Secured bank credit facilities, Ba3 (LGD-3, 30% from LGD-3, 31%) -- Senior Subordinated, B3 (LGD-5, 82% % from LGD-5, 83%) Accuride Canada Inc.: -- Senior secured revolving credit facility, Ba3 (LGD-3, 30% from LGD-3, 31%) The last rating action was on Sept. 22, 2006 at which time the senior secured bank credit facilities were upgraded to Ba3 upon the introduction of Moody's Loss Given Default methodology. Accuride Corporation, headquartered in Evansville, Indianapolis, is a diversified North American manufacturer and supplier of commercial vehicle components. Principal products include wheels, wheel-end components and assemblies, truck body and chassis parts, and seating assemblies. Revenues in 2006 were about $1.4 billion. ADAMS SQUARE: Moody's Junks Ratings on Three Note Classes --------------------------------------------------------- Moody's Investors Service placed these notes issued by Adams Square Funding II Ltd. on review for possible downgrade: -- $15,200,000 Class S Floating Rate Notes Due 2014 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $600,000,000 Class A1 Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $95,000,000 Class A2 Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Baa2, on review for possible downgrade -- $140,000,000 Class A3 Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Ba1, on review for possible downgrade -- $50,000,000 Class B Deferrable Floating Rate Notes Due 2047 Prior Rating: A2 Current Rating: Ba3, on review for possible downgrade -- $49,000,000 Class C Deferrable Floating Rate Notes Due 2047 Prior Rating: Baa2 Current Rating: Caa3, on review for possible downgrade -- $20,000,000 Class D Deferrable Floating Rate Notes Due 2047 Prior Rating: Baa3 Current Rating: Caa3, on review for possible downgrade -- $10,000,000 Class Q Combination Notes Due 2047 Prior Rating: Baa1 Current Rating: B1, on review for possible downgrade In addition, Moody's has downgraded these class of notes: -- $10,000,000 Class E Deferrable Floating Rate Notes Due 2047 Prior Rating: Ba1 Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. ADVANCED MARKETING: Wants Until Nov. 30 to Decide on Lone Lease --------------------------------------------------------------- Advanced Marketing Services Inc., Publishers Group Incorporated, and Publishers Group West Incorporated ask the U.S. Bankruptcy Court for the District of Delaware to extend until Nov. 30, 2007, the time by which they may assume or reject their sole remaining unexpired lease of a non-residential real property, located in Indianapolis, Indiana, with The Prudential Company of America, as landlord. The Court recently extended the Lease Decision Period with respect to the Indianapolis Lease to October 31, 2007. Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that the Debtors have obtained prior written consent of the lessor of the Indianapolis Lease to the requested November 30 extension. Under Section 365(d)(4)(B)(ii) of the Bankruptcy Code, the Court may grant a subsequent extension "only upon prior written consent of the lessor in each instance." The Debtors seek extension of the Indianapolis Lease Decision Period without prejudice to their right to seek further extensions. The Court will convene a hearing on November 27 at 11:00 a.m., to consider the Debtors' request. Pursuant to Del.Bankr.LR 9006-2, the Debtors' Lease Decision Period with respect to the Indianapolis Lease is automatically extended until the conclusion of that hearing. About Advanced Marketing Based in San Diego, Calif., Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. Lowenstein Sandler PC represents the Official Committee of Unsecured Creditors. In schedules filed with the Court, Advanced Marketing disclosed total assets of $213,384,791 and total debts of $216,608,357. Publishers Group West disclosed total assets of $39,699,451 and total debts of $83,272,493. Publishers Group Inc. disclosed zero assets but $41,514,348 in liabilities. On Aug. 24, 2007, the Debtors' exclusive period to file a chapter 11 plan expired. On the same date, the Debtors and Creditors Committee filed a Plan & Disclosure Statement. On September 26, the Court approved the adequacy of the Disclosure Statement explaining the Second Amended Plan. The hearing to consider confirmation of the Plan is set on Nov. 15, 2007. (Advanced Marketing Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). AIR MARSHALL ISLANDS: Grounded Planes May Lead to Bankruptcy ------------------------------------------------------------ Air Marshall Islands is close to bankruptcy after its planes were grounded for weeks cutting domestic flights that led to revenue losses, reports say. All domestic flights in the Marshall Islands were off beginning late August until September as the only two aircrafts of the carrier were either overhauled or put under maintenance check, Giff Johnson writes for Pacific Magazine. However in early October, domestic flights were again canceled, which made passengers opt for sea travel, Radio New Zealand International relates. The mechanical problems at Air Marshall Islands disrupted island travel and and the decline in revenue delayed the payment for airline workers, according to the Pacific Magazine. Last week, the government had provided about $200,000 to the airline to help cover costs, the Pacific Magazine says. The company's flight cuts also affected the diving program in the Bikini Atoll which generates most of its income of about $200,000 from European and American clients, Radio NZ International adds. Air Marshall Islands -- http://www.airmarshallislands.com/-- is a government-owned airline based in the Marshall Islands International Airport in Majuro. It is the flag carrier of the Marshall Islands and designated the official flag carrier of the government of Tuvalu, operating inter-island services in the South Pacific. The airline was established in 1980 as Airline of the Marshall Islands and adopted its current title in 1989. It is wholly owned by the Government of the Marshall Islands and has 90 employees (at March 2007). The company operates two aircrafts, Dornier 228 and 34-seat Dash-8 that provide regular weekly services to the Republic's atolls and islands. ALTERNATIVE LOAN: $62,632 Write-Down Cues S&P's Default Rating -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B-3 and B-4 mortgage pass-through certificates from Alternative Loan Trust 2005-2 to 'CCC' from 'B' and to 'D' from 'CCC', respectively. Concurrently, S&P placed its 'BB' rating on class B-2 from this series on CreditWatch with negative implications. Additionally, S&P affirmed its ratings on the remaining five classes from this transaction. The downgrade of the B-4 class reflects a principal write-down of $62,632.75 during the October 2007 distribution period. As a result, S&P downgraded the class to 'D' from 'CCC'. The downgrade of class B-3 to 'CCC' and the negative CreditWatch placement of class B-2 reflect recent collateral performance that has eroded available credit support. While current credit support is sufficient, the projected credit support percentage is below the level required at the 'B' and 'BB' rating category. As of the October 2007 remittance period, the six-month average loss totaled $100,026, up from the 12-month average loss of $62,851. This transaction is 33 months seasoned and is supported by credit enhancement in the form of subordination. The affirmations reflect sufficient current and projected credit support percentages to maintain the current ratings, as reported during the October 2007 remittance period. The collateral for this transaction consists of 30-year, conventional, adjustable-rate, fully amortizing mortgage loans secured by first liens on one- to four-family residential properties. The loans were originated or acquired by the originator and will be master-serviced by Countrywide Home Loans Servicing L.P. Ratings Lowered Alternative Loan Trust 2005-2 Rating ------ Series Class To From ------ ----- -- ---- 2005-2 B-4 D CCC 2005-2 B-3 CCC B Rating Placed on Creditwatch Alternative Loan Trust 2005-2 Rating ------ Series Class To From ------ ----- -- ---- 2005-2 B-2 BB/Watch Neg BB Ratings Affirmed Alternative Loan Trust 2005-2 Series Class Rating ------ ----- ------ 2005-2 1-A-1, 2-A-1, 3-A-1 AAA 2005-2 M AA 2005-2 B-1 A APRIA HEALTHCARE: Commences $265 Mil. Offering of Senior Notes -------------------------------------------------------------- Apria Healthcare Group Inc. has commenced an offering of $265 million aggregate principal amount of senior subordinated notes. Apria intends to use the net proceeds from the offering to pay a portion of the purchase price of its announced acquisition of Coram Inc. Apria's acquisition of Coram is conditioned upon obtaining customary governmental and regulatory approvals and other standard closing conditions. Apria anticipates closing the acquisition in late November or early December after satisfaction of the closing conditions. The acquisition of Coram is not contingent on the issuance of the notes, as Apria has sufficient cash and availability under its revolving credit agreement to fund the full acquisition cost. Similarly, the financing is not contingent upon consummation of the acquisition. If the acquisition of Coram is not completed, Apria expects to use the net proceeds from the offering for general corporate purposes, which may include reducing outstanding indebtedness. About Coram Inc. Headquartered in Denver, Colorado, Coram Inc. -- http://www.coramhealthcare.com/-- provides home infusion and specialty pharmaceutical distribution services with more than 70 branch locations, 50 ambulatory infusion suites and centralized pharmacy distribution services to patients in all 50 states. The company has approximately 2,100 employees nationwide, that provides a comprehensive range of home infusion therapies to more than 65,000 patients. About Apria Healthcare Headquartered in Lake Forest, California, Apria Healthcare Group Inc. (NYSE: AHG) -- http://www.apria.com/-- provides home respiratory therapy, home infusion therapy and home medical equipment through about 500 branches serving patients in all 50 states. * * * Apria Healthcare continues to carry Moody's 'Ba1' long term corporate family rating, which was placed in June 2006 with a stable outlook. As reported in the Troubled Company Reporter on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings, including the 'BB+' corporate credit rating, on Apria Healthcare Group Inc. after the company announced the $350 million acquisition of specialty infusion services provider Coram Inc. The outlook is stable. APRIA HEALTHCARE: S&P Rates Proposed $265MM Senior Notes at BB- --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating to Apria Healthcare Group Inc.'s proposed $265 million senior subordinated notes due 2017. At the same time, S&P affirmed its existing ratings, including the 'BB+' corporate credit rating, on Apria. The outlook is stable. The notes are being issued to help finance Apria's recently announced $350 million acquisition of specialty infusion services provider Coram Inc. Sufficient cushion exists in Lake Forest, California-based Apria's financial risk profile to absorb the impact of the acquisition. "The ratings continue to reflect the exposure of the company's businesses to variable third-party reimbursement policies and pricing, the financial impact that fee cuts have had on the company in the past couple of years, and risks related to the integration of Coram's operations," said Standard & Poor's credit analyst Alain Pelanne. "These concerns are partially offset by the company's leading position in providing specialized home health care services and equipment and its history of generating significant cash flows." "The risks are also mitigated by Apria's disciplined financial policy, as demonstrated by its willingness to scale back acquisitions over the past couple of years in the face of reimbursement uncertainty to deleverage its capital structure," said Mr. Pelanne. Apria provides respiratory therapy, infusion therapy, and medical equipment to patients in their homes through a network of about 500 locations in all 50 states. The acquisition of Coram will add approximately 50 non-overlapping locations, making Apria a national provider in the industry. In addition, it will add a large number of ambulatory infusion suites, which will give Apria the ability to serve patients in a comfortable, alternate site. ASSET BACKED: Fitch Rates $30 Mil. Class B-1 Certificates at BB+ ---------------------------------------------------------------- Fitch Ratings assigned these ratings to Asset Backed Funding Corp.'s series 2007-WMC1 $1.45 billion of mortgage pass-through certificates: -- $1,115,917,000 classes A1A, A1B, A2A, A2B 'AAA'; -- $42,617,000 class M-1 'AA+'; -- $42,616,000 class M-2 'AA'; -- $58,400,000 class M-3 'AA-'; -- $36,303,000 class M-4 'A+'; -- $36,303,000 class M-5 'A'; -- $26,044,000 class M-6 'A-'; -- $21,308,000 class M-7 'BBB+'; -- $19,730,000 class M-8 'BBB'; -- $22,097,000 class M-9 'BBB-'; -- $30,778,000 privately offered class B-1 'BB+'. The 'AAA' rating on the senior certificates reflects the 29.3% initial credit enhancement provided by the 2.7% class M-1, the 2.7% class M-2, the 3.7% class M-3, the 2.3% class M-4, the 2.3% class M-5, the 1.65% class M-6, the 1.35% class M-7, the 1.25% class M-8, the 1.4% class M-9 and the 1.95% B-1 privately offered class, along with fully funded over-collateralization of 8%. All certificates have the benefit of excess interest. In addition, the ratings reflect the quality of the loans, the soundness of the legal and financial structures, and the capabilities of Saxon Mortgage (rated RPS2+ by Fitch) as servicer. US Bank, National Association will act as Trustee. The collateral mortgage pool consists of adjustable-rate and fixed-rate, first lien mortgage loans with a cut-off date pool balance of $1,578,384,711. About 6.35% of the mortgage loans are fixed-rate mortgage loans, 93.65% are adjustable-rate mortgage loans and 100% are first lien mortgage loans. The weighted average loan rate is about 7.83%. The weighted average term to maturity is 360 months. The average current principal balance of the loans is about $278,228. The weighted average loan-to-value ratio is 83.10%. The properties are primarily located in California (42.5%) and Florida (9.63%). For federal income tax purposes, multiple real estate mortgage investment conduit elections will be made with respect to the trust estate. ATHLETES WORLD: Files for Bankruptcy Protection Under CCAA ---------------------------------------------------------- Athletes World Ltd., Canadian unit of Bata Ltd., filed for protection from its creditors under the Companies' Creditors Arrangement Act with the Ontario Superior Court of Justice on Oct. 30, 2007, Marina Strauss writes for Globe and Mail. The company, which is losing money to competitors and facing thousand of dollars in tax claims, said it hopes to sell off its assets through the bankruptcy process, the report reveals. The company has been in negotiation with Michael Gold relating to the sale of the company's assets and had reached an agreement last May, the report says. However, Mr. Gold backed out on the deal on October 29 which led to the company's bankruptcy filing the next day, the report adds. Athletes World owes about $152 million, about $115 million of which is owed to its parent company, Bata, according to the report. About Athletes World Headquartered in Ontario, Athletes World Ltd. is a shoe retailer with over 100 stores in Canada. It is the only remaining Canadian retailer unit of Bata Ltd., -- http://www.bata.com/-- a privately owned global shoe manufacturer and retailer. Bata is led by a third generation of the Bata family. With operations in 68 countries, Bata is organized into four business units. Bata Canada, based in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata International has 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin America, operating out of Mexico City, sells footwear throughout Latin America. Bata owns more than 4,700 retail stores and 46 production facilities. Total employment for the company exceeds 50,000. AUTOMOTIVE GLASS: Aggressive Fin'l Profile Cues S&P's "B+" Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to auto glass maker Automotive Glass & Services Inc., whose purchase by financial sponsor Platinum Equity is expected to close in November 2007. The outlook is stable. AG&S is currently owned by PPG Industries Inc. (A/Watch Neg/A-1) and is being purchased by Platinum in a "carve-out" transaction. "The ratings on AG&S reflect its aggressive financial profile, which stems from the debt-financed purchase, and a weak business profile," said Standard & Poor's credit analyst Lawrence Orlowski. Total debt to EBITDA will be around 4x at closing, but could rise in 2008. For the rating, S&P expect that adjusted debt to EBITDA will remain less than 4.5x and that funds from operations to adjusted debt will be over 10%. The stable outlook reflects our expectation that AG&S will improve its operating performance and cash generation as a consequence of the restructuring process. S&P expect the company to maintain debt to EBITDA of less than 4.5x and FFO to debt of at least 10%. Longer term, S&P could revise the outlook to positive or raise the ratings if the company improves its financial profile through significant debt reduction and increased profitability over the next two years. S&P could revise the outlook to negative if the company experiences erosion of profitability because of integration challenges or operating problems, if it undertakes a material debt-financed acquisition, or if adverse market conditions reduce demand for AG&S' services. BALLY TECHNOLOGIES: S&P Lifts Credit and Debt Ratings to B+ ----------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit and senior secured debt ratings on Las Vegas-based Bally Technologies Inc. to 'B+' from 'B-'. Concurrently, S&P revised the CreditWatch implications to positive from developing. Since the ratings were initially placed on CreditWatch on Sept. 9, 2005, several rating actions have occurred. "The upgrade and revision of CreditWatch implications to positive reflect the company's ability to complete filing all outstanding financial reports," said Standard & Poor's credit analyst Guido DeAscanis. In addition, based on company announcements, Bally has experienced positive operating momentum over the past several quarters, and S&P expect this trend to continue over the intermediate term. Bally's is a manufacturer and supplier of casino gaming machines and information systems. S&P anticipate resolving the CreditWatch listing within the next several weeks. This process will cover a discussion with management about Bally's operational and financial strategies, including any material weaknesses related to financial reporting. Should this result in an upgrade, S&P expect that it would be limited to one or two notches. BARNERT HOSPITAL: Files Schedules of Assets & Liabilities --------------------------------------------------------- Nathan and Miriam Barnert Memorial Hospital Association filed with the U.S. Bankruptcy Court for the District of New Jersey, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $10,515,435 B. Personal Property $36,085,532 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $32,794,279 E. Creditors Holding Unsecured Priority Claims $4,365,331 F. Creditors Holding Unsecured Non-priority Claims $24,143,895 ----------- ----------- TOTAL $46,600,967 $61,303,505 About Barnert Hospital Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English, LLP, represents the Debtor in its restructuring efforts. Warren J. Martin Jr., Esq. and John S. Mairo, Esq., at Porzio Bromberg & Newman, P.C., represent the Official Committee of Unsecured Creditors in this case. Donlin Recano & Company Inc. is the Debtor's claims, noticing, and balloting agent. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million. BARNERT HOSPITAL: Taps Fox Rothschild as Special Labor Counsel -------------------------------------------------------------- Nathan and Miriam Barnert Memorial Hospital Association asks authority from the U.S. Bankruptcy Court for the District of New Jersey to employ Fox Rothschild LLP as its special labor counsel. Fox Rothschild will continue to provide legal services to the Debtor, in relation to the Debtor's issues with its union labor contracts. Stephen A. Ploscowe, Esq., a member at Fox Rothschild, tells the Court that the firm's professionals bill: Designation Hourly Rate ----------- ----------- Attorneys $190 - $595 Paralegals $100 - $235 Mr. Ploscowe assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. Mr. Ploscowe can be contacted at: Stephen A. Ploscowe, Esq. Fox Rothschild LLP 75 Eisenhower Parkway, Suite 201 Roseland, NJ 07068 Tel: (973) 992-4800 Fax: (973) 992-9125 http://www.foxrothschild.com/ About Barnert Hospital Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English, LLP, represents the Debtor in its restructuring efforts. Warren J. Martin Jr., Esq. and John S. Mairo, Esq., at Porzio Bromberg & Newman, P.C., represent the Official Committee of Unsecured Creditors in this case. Donlin Recano & Company Inc. is the Debtor's claims, noticing, and balloting agent. BARNERT HOSPITAL: Taps Steven Finkelstein as Collections Counsel ---------------------------------------------------------------- Nathan and Miriam Barnert Memorial Hospital Association asks permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Steven H. Finkelstein LLC as its collections counsel. The Debtor relates that Steven H. Finkelstein is the sole practitioner and founder of the firm. Mr. Finkelstein has represented the Debtor in the litigation titled: "President Container, Inc. et al., Plaintiffs vs. PACE Local 1-300 Health Fund, et al., Defendants", currently pending in the U.S. District Court for the State of New Jersey, Civil Action No. 04-3885. In that action, the Debtor seeks to recover charges incurred for treatment rendered to the late Antero E. Fernandez, from PACE Local 1-300 Health Fund. The unpaid charges incurred by Mr. Fernandez in connection with the treatment rendered to him by the Debtor total $253,419. The Debtor tells the Court that in the course of that representation, the firm has been able to circumvent the Debtor's apparent lack of standing to bring suit under ERISA against a self-funded health plan and has been actively engaged in the matter, including participation in lengthy and complicated discovery regarding multiple parties who are potentially liable for all or part of the Fernandez bill. Mr. Finkelstein will: a) complete the discovery; b) participate in the case management and settlement conferences with the magistrate; and c) participate in the ensuing trial. The Debtor will pay Mr. Finkelstein 20% of all charges billed by the Debtor on account of treatment rendered to Mr. Fernandez. Mr. Finkelstein assures the Court that he is "disinterested" as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. Mr. Finkelstein can be contacted at: Steven H. Finkelstein, Esq. Steven H. Finkelstein, LLC 23 Clyde Road, Suite 201 Somerset, NJ 08873 About Barnert Hospital Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English, LLP, represents the Debtor in its restructuring efforts. Warren J. Martin Jr., Esq. and John S. Mairo, Esq., at Porzio Bromberg & Newman, P.C., represent the Official Committee of Unsecured Creditors in this case. Donlin Recano & Company Inc. is the Debtor's claims, noticing, and balloting agent. BEAR STEARNS: Moody's Takes Rating Actions on 18 Deals ------------------------------------------------------ Moody's Investors Service downgraded the ratings of 107 tranches and has placed under review for possible downgrade the ratings of 25 tranches from 18 deals issued by Bear Stearns in 2006 and late 2005. Four downgraded tranches remain on review for possible downgrade. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. Moody's has also applied its published methodology updates to the non delinquent portion of the transactions. Complete rating actions are: Issuer: Bear Stearns Alt-A 2006-1 -- Cl. I-M-2, Downgraded to Baa2, previously A2, -- Cl. I-B-1, Downgraded to B1, previously Baa2, -- Cl. I-B-2, Downgraded to Caa1, previously Baa3, -- Cl. I-B-3, Downgraded to C, previously Ba2, -- Cl. II-B-1 Currently Aa2 on review for possible downgrade, -- Cl. II-B-2, Downgraded to Baa2, previously A2, -- Cl. II-B-3, Downgraded to B1, previously Baa2, -- Cl. II-X-B1 Currently Aa2 on review for possible downgrade, -- Cl. II-X-B2, Downgraded to Baa2, previously A2, -- Cl. II-X-B3, Downgraded to B1, previously Baa2. Issuer: Bear Stearns Alt-A Trust 2005-10 -- Cl. I-M-2, Downgraded to Baa1, previously A2, -- Cl. I-B-1, Downgraded to B1, previously Baa2, -- Cl. I-B-2, Downgraded to B3, previously Baa3, -- Cl. I-B-3, Downgraded to C, previously Ba2, -- Cl. II-B-2 Currently Aa2 on review for possible downgrade, -- Cl. II-B-3 Currently Aa3 on review for possible downgrade, -- Cl. II-B-4, Downgraded to A3, previously A1, -- Cl. II-B-5, Downgraded to Baa2, previously A2, -- Cl. II-B-6, Downgraded to Baa3, previously A3, -- Cl. II-B-7, Downgraded to Ba3, previously Baa1, -- Cl. II-B-8, Downgraded to B3, previously Baa2, -- Cl. II-B-9, Downgraded to B3 on review for possible further downgrade, previously Baa3. Issuer: Bear Stearns Alt-A Trust 2006-2 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa3, previously A2, -- Cl. I-B-1, Downgraded to B2, previously Baa2, -- Cl. I-B-2, Downgraded to Caa1, previously Baa3, -- Cl. I-B-3, Downgraded to C, previously Ba2, -- Cl. II-B-1 Currently Aa2 on review for possible downgrade, -- Cl. II-X-B1 Currently Aa2 on review for possible downgrade, -- Cl. II-B-2, Downgraded to Ba1, previously A2, -- Cl. II-X-B2, Downgraded to Ba1, previously A2, -- Cl. II-B-3, Downgraded to B3, previously Baa2. Issuer: Bear Stearns Alt-A Trust 2006-3 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa2, previously A2, -- Cl. I-B-1, Downgraded to Ba3, previously Baa2, -- Cl. I-B-2, Downgraded to B3, previously Baa3, -- Cl. I-B-3, Downgraded to Caa3, previously Ba2, -- Cl. II-B-1 Currently Aa2 on review for possible downgrade, -- Cl. II-B-2, Downgraded to Baa3, previously A2, -- Cl. II-B-3, Downgraded to B3, previously Baa2, -- Cl. II-X-B1 Currently Aa2 on review for possible downgrade, -- Cl. II-X-B2, Downgraded to Baa3, previously A2, -- Cl. III-B-1 Currently Aa2 on review for possible downgrade, -- Cl. III-B-2, Downgraded to Baa3, previously A2, -- Cl. III-B-3, Downgraded to B2, previously Baa2. Issuer: Bear Stearns Alt-A Trust 2006-4 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa3, previously A2, -- Cl. I-B-1, Downgraded to B2, previously Baa2, -- Cl. I-B-2, Downgraded to Caa2, previously Baa3, -- Cl. I-B-3, Downgraded to C, previously Ba2, -- Cl. II-B-1 Currently Aa1 on review for possible downgrade, -- Cl. II-B-2 Currently Aa2 on review for possible downgrade, -- Cl. II-B-3 Currently Aa3 on review for possible downgrade, -- Cl. II-B-4, Downgraded to Baa2, previously A1, -- Cl. II-B-5, Downgraded to Ba1, previously A2, -- Cl. II-B-6, Downgraded to B1, previously A3, -- Cl. II-B-7, Downgraded to B3, previously Baa1, -- Cl. II-B-8, Downgraded to B3 on review for possible further downgrade, previously Baa2, -- Cl. III-B-2, Downgraded to Baa2, previously A2, -- Cl. III-B-3, Downgraded to B1, previously Baa2. Issuer: Bear Stearns Alt-A Trust 2006-5 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa3, previously A2, -- Cl. I-B-1, Downgraded to B2, previously Baa2, -- Cl. I-B-2, Downgraded to Caa1, previously Baa3, -- Cl. I-B-3, Downgraded to Caa3, previously Ba2, -- Cl. II-B-2, Downgraded to Baa2, previously A2, -- Cl. II-B-3, Downgraded to B1, previously Baa2. Issuer: Bear Stearns Alt-A Trust 2006-6 -- Cl. I-A-1 Currently Aaa on review for possible downgrade, -- Cl. I-A-2 Currently Aaa on review for possible downgrade, -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa3, previously A2, -- Cl. I-B-1, Downgraded to B2, previously Baa2, -- Cl. I-B-2, Downgraded to Caa1, previously Baa3, -- Cl. I-B-3, Downgraded to Caa2, previously Ba2, -- Cl. III-B-2 Currently Aa2 on review for possible downgrade, -- Cl. III-B-3, Downgraded to Ba1, previously A2, -- Cl. III-B-4, Downgraded to B3, previously Baa2, -- Cl. III-BX-2 Currently Aa2 on review for possible downgrade, -- Cl. III-BX-3, Downgraded to Ba1, previously A2. Issuer: Bear Stearns Alt-A Trust 2006-7 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Ba1, previously A2, -- Cl. I-B-1, Downgraded to B3, previously Baa2, -- Cl. I-B-2, Downgraded to Ca, previously Baa3, -- Cl. I-B-3, Downgraded to C, previously Ba2. Issuer: Bear Stearns Alt-A Trust 2006-8 -- Cl. I-M-1 Currently Aa2 on review for possible downgrade, -- Cl. I-M-2, Downgraded to Baa2, previously A2, -- Cl. I-B-1, Downgraded to Ba3, previously Baa2, -- Cl. I-B-2, Downgraded to B2, previously Baa3, -- Cl. I-B-3, Downgraded to Caa1, previously Ba2, -- Cl. II-B-2, Downgraded to Baa1, previously A2, -- Cl. II-B-3, Downgraded to Ba2, previously Baa2, -- Cl. II-BX-2, Downgraded to Baa1, previously A2. Issuer: Bear Stearns ARM Trust 2005-12 -- Cl. I-B-3, Downgraded to Baa3, previously Baa2. Issuer: Bear Stearns Asset Backed Securities I Trust 2005-AC9 -- Cl. B-4, Downgraded to Caa2, previously Ba2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC1 -- Cl. I-B-3, Downgraded to Ba3, previously Baa3, -- Cl. I-B-4, Downgraded to Caa3, previously Ba2, -- Cl. II-B-1 Currently Aa2 on review for possible downgrade, -- Cl. II-B-2, Downgraded to Baa3, previously A2, -- Cl. II-B-3, Downgraded to B3, previously Baa2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC2 -- Cl. I-B-3, Downgraded to B1, previously Baa3, -- Cl. II-B-1 Currently Aa2 on review for possible downgrade, -- Cl. II-B-2, Downgraded to Ba1, previously A2, -- Cl. II-B-3, Downgraded to B3, previously Baa2, -- Cl. I-B-4, Downgraded to Caa3, previously Ba2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC3 -- Cl. B-3, Downgraded to B1, previously Baa3, -- Cl. B-4, Downgraded to Caa3, previously Ba2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC4 -- Cl. M-3, Downgraded to A3, previously A2, -- Cl. B-1, Downgraded to Baa2, previously A3, -- Cl. B-2, Downgraded to Baa3, previously Baa1, -- Cl. B-3, Downgraded to Ba1, previously Baa2, -- Cl. B-4, Downgraded to Ba3, previously Baa3, -- Cl. B-5, Downgraded to B3 on review for possible further downgrade, previously Ba2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-AC5 -- Cl. M-3, Downgraded to A3, previously A2, -- Cl. M-4, Downgraded to Baa1, previously A3, -- Cl. B-1, Downgraded to Baa2, previously Baa1, -- Cl. B-2, Downgraded to Baa3, previously Baa2, -- Cl. B-3, Downgraded to Ba1, previously Baa3, -- Cl. B-4, Downgraded to Ba3, previously Ba2. Issuer: Bear Stearns Asset Backed Securities I Trust 2006-ST1 -- Cl. M-2, Downgraded to A2, previously A1, -- Cl. M-3, Downgraded to Baa1, previously A2, -- Cl. M-4, Downgraded to Baa2, previously A3, -- Cl. B-1, Downgraded to Ba1, previously Baa1, -- Cl. B-2, Downgraded to Ba3, previously Baa2, -- Cl. B-3, Downgraded to B3, previously Baa3, -- Cl. B-4, Downgraded to Caa2, previously Ba2. Issuer: Bear Stearns Mortgage Funding Trust 2006-AC1 -- Cl. M-2, Downgraded to A2, previously A1, -- Cl. M-3, Downgraded to Baa1, previously A2, -- Cl. M-4, Downgraded to Baa2, previously A3, -- Cl. B-1, Downgraded to Ba1, previously Baa1, -- Cl. B-2, Downgraded to B1, previously Baa2, -- Cl. B-3, Downgraded to B2, previously Baa3, -- Cl. B-4, Downgraded to B3 on review for possible further downgrade, previously Ba2. BEAZER HOMES: Expects $230 Million Pre-Tax Charges for 4th Quarter ------------------------------------------------------------------ Beazer Homes USA Inc. reported Monday certain unaudited and preliminary fourth quarter financial and operating data and also disclosed further steps to reduce costs and improve operating efficiencies in response to continued deterioration in the housing market. The company currently expects results for the fourth quarter of fiscal 2007 to include non-cash pre-tax charges to abandon land option contracts, to recognize inventory impairments and to record impairments and land option abandonments in joint ventures of approximately $230 million. In addition, the company is currently in the process of evaluating the recoverability of its goodwill, which may result in impairment charges. Home closings for the quarter ended Sept. 30, 2007, totaled 3,940, a 39% decline from the same period in the prior fiscal year. This resulted in a backlog conversion ratio of 66%, as the company remained focused on converting its existing backlog for cash generation. Net new home orders totaled 973, a decline of 53% from the prior fiscal year, driven largely by an unusually high cancellation rate of 68%, which the company attributes in part to the pronounced tightening in the mortgage markets in August and September. The company significantly increased its cash position during its fiscal fourth quarter. At Sept. 30, 2007, the company had a cash balance of $459.5 million, up from $128.8 million at June 30, 2007. Subsequently, the company has repaid approximately $75.0 million in secured debt, pledged $107.0 million to collateralize its outstanding letters of credit and paid a consent fee to holders of its Senior Notes and Senior Convertible Notes and related expenses totaling $21.0 million. The company continues to reduce its land holdings and home inventories. The company controlled a total of 61,974 lots (59% owned and 41% optioned) at Sept. 30, 2007, reflecting reductions of 14% compared to the level at June 30, 2007, 30% compared to the level at Sept. 30, 2006, and 42% compared to a peak level at Dec. 31, 2005. As of Sept. 30, 2007, unsold finished homes and unsold homes under construction declined by 28% and 35%, respectively, from year-ago levels. The company remains committed to aligning its land supply and inventory levels to current expectations for home closings, and continues to exercise caution and discipline with respect to investment in inventory. For FY 2007 total land and land development expenditures were approximately $835 million, representing a reduction of 42% from FY 2006. The company currently expects land spending to be even further reduced in FY 2008, based on current market conditions. "The housing industry continues to face the most difficult business conditions in over a decade," said Ian J. McCarthy, president and chief executive officer. "We maintain the view that the long term fundamentals for housing remain compelling and that our strategic initiatives to differentiate Beazer Homes in the eyes of the consumer and to allocate capital and resources in order to enhance long term shareholder value will position us well for the future. At the same time, we must continue to adapt to the realities of the current market by remaining disciplined in our operating approach and continuing to focus on initiatives aimed at responding to what we believe will continue to be a challenging environment in the near term. These initiatives include reductions in direct costs, overhead expenses and land spending, and an intense focus on sales and marketing efforts to reduce unsold home inventories, all with the aim of generating cash." Steps to Reduce Costs and Improve Efficiencies The company has recently taken steps to further reduce its overall cost structure and improve operating efficiencies. In October 2007, the company reduced overall headcount by approximately 650 positions, or 25%. Since reaching peak headcount levels in March 2006, overall headcount has declined by over 50% through reductions in force and attrition. The company expects these most recent headcount reductions to result in annualized cost savings of at least $30 million. In addition, the company has reorganized accounting and back-office functions and is centralizing a number of marketing initiatives to achieve additional efficiencies. "With recent industry data suggesting that market conditions may deteriorate further before a recovery is underway, we need to adapt and further align our cost structure and investment levels to expected lower volumes. While these decisions are not taken lightly, they are necessary in order to maintain our sound financial position," said McCarthy. Suspension of Quarterly Dividend The company also announced that its Board of Directors voted to suspend the company's quarterly dividend of $0.10 per share. The Board concluded that this action, which will allow the company to conserve approximately $16 million of cash on an annual basis, is prudent in light of the continued deterioration in the housing market. About Beazer Homes Headquartered in Atlanta, Beazer Homes USA Inc., (NYSE: BZH) -- http://www.beazer.com/-- is a single-family homebuilder with operations in Arizona, California, Colorado, Delaware, Florida, Georgia, Indiana, Kentucky, Maryland, 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 Nov 1, 2007, Standard & Poor's Ratings Services ratings on Beazer Homes USA Inc. (B+/Watch Neg/--) will remain on CreditWatch with negative implications until the extent of pending restatements tied to its recently completed internal investigation are finalized and the company files all financial statements with the SEC. As reported in the Troubled Company Reporter on Oct 16, 2007, Fitch Ratings downgraded Beazer Homes USA Inc.'s Issuer Default Rating to 'BB-' from 'BB'. BIEHLER COMPANIES: Jim Biehler's Group Ponders a Buyout ------------------------------------------------------- Jim Biehler, father of John Biehler, president of Biehler Companies Inc., disclosed a collective intent to buy all of the company's assets in hopes to have a fresh start after bankruptcy, Carrie Rengers of Wichita Eagle reports. Jim Biehler said he and 11 company managers have formed a group and are currently negotiating with "interested parties" of a possible employee purchase of the bankrupt landscaper, according to the report. Wichita, Kansas-based Biehler Companies, Inc., dba Suburban Landscapes Management, -- http://www.landscapeitnow.com/-- offers landscaping services. The Debtor filed for chapter 11 bankruptcy protection on Oct. 15, 2007 (Bankr. D. Kans. Case No. 07-12500). W. Thomas Gilman, Esq. at Redmond & Nazar, LLP represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets between $100,000 to $1 million and debts between $1 million to $100 million. BLUE EDGE: Moody's Cuts Ratings on Three Note Classes to Low-B -------------------------------------------------------------- Moody's Investors Service downgraded and placed these notes issued by Blue Edge ABS CDO Ltd. on review for possible downgrade: -- $33,750,000 Class C Deferrable Interest Floating Rate Notes Due 2050 Prior Rating: A2 Current Rating: Baa1, on review for possible downgrade -- $3,900,000 Class D-1 Deferrable Interest Floating Rate Notes Due 2050 Prior Rating: Baa2 Current Rating: Ba1, on review for possible downgrade -- $2,350,000 Class D-2 Deferrable Interest Fixed Rate Notes Due 2050 Prior Rating: Baa2 Current Rating: Ba1, on review for possible downgrade -- $3,125,000 Class E Deferrable Interest Floating Rate Notes Due 2050 Prior Rating: Baa3 Current Rating: Ba2, on review for possible downgrade -- $30,000,000 Class I Combination Notes Due 2050 Prior Rating: A3 Current Rating: Baa1, on review for possible downgrade -- $6,527,778 Class II Combination Notes Due 2050 Prior Rating: A2 Current Rating: Baa2, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. BOHUMIR MARIK: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Bohumir Marik aka Bob Marik 33652 Holtz Hill Road Dana Point, CA 92629-1915 Bankruptcy Case No.: 07-13604 Chapter 11 Petition Date: October 31, 2007 Court: Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: John Saba, Esq. 13902 Gershon Place Santa Ana, CA 92705 Tel: (714) 544-1276 Fax: (714) 544-2307 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million Debtor's list of his 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Law Office of Les Zieve Note (secured) $3,200,000 17682 Beach Blvd., Suite 204 Huntington Beach, CA 92647 Buckeye Retirement Co., Note (secured) $1,600,000 LLC, Ltd. 100 North Center Street newton Falls, OH 44444-1321 The Cadle Company Note (secured) $1,600,000 100 North Center Street newton Falls, OH 44444-1321 Anna Slintak Loan (secured) $420,000 Bank of America Line of credit $130,000 Gregory Grantham Attorneys Fees $100,000 Martin Slintak Loan (secured) $80,000 Templeton Briggs, Esq. Attorneys Fees $40,000 American Express Credit card $1,450 Citibank Credit card $300 S.D.G. & E. Electricity $210 AT & T Telephone $180 Verizon Telephone $120 DIRECTV, Inc. Satellite TV $80 BOSTON SCIENTIFIC: Selling Cardiac & Vascular Biz for $750 Mil. --------------------------------------------------------------- Boston Scientific Corporation signed a definitive agreement for the sale of its Cardiac Surgery and Vascular Surgery businesses to the Getinge Group for a cash price of $750 million and is expected to close within the next 45-90 days, subject to regulatory approvals and customary conditions. The company disclosed its intent to sell the Cardiac Surgery and Vascular Surgery businesses on Aug. 16, as part of its plan to divest non-strategic assets and increase shareholder value. Boston Scientific acquired the Cardiac Surgery business in April 2006 as part of the Guidant transaction. The Cardiac Surgery business is a developer of medical technologies designed for use in surgical cardiac procedures, including beating-heart bypass surgery systems and endoscopic vessel harvesting for coronary bypass surgery. The business employs approximately 450 people. Boston Scientific acquired the Vascular Surgery business in 1995. The Vascular Surgery business develops synthetic grafts and patches used to surgically treat vascular disease, including the repair of abdominal aortic aneurysms and peripheral vascular anatomy. The business has approximately 250 employees. The combined revenues of the two businesses in 2006 were approximately $275 million. "Working with the talented employees of the Cardiac Surgery and Vascular Surgery businesses, our goal is to drive growth and bring new technologies to these markets, ultimately benefiting cardiac and vascular surgeons and their patients," Johan Malmquist, president and chief executive officer of the Getinge Group of Stockholm, Sweden, said. "We are excited to complement our existing portfolio with these valuable businesses, each of which brings leading market positions and impressive product lines." "This transaction completes an element of our plan to divest non- strategic assets, focus on our core businesses and increase shareholder value," Jim Tobin, president and chief executive officer of Boston Scientific, said. "We deeply appreciate the contributions our Cardiac Surgery and Vascular Surgery employees have made to Boston Scientific, our customers and their patients. We know they will continue to serve customers and patients well going forward." About Getinge Group Headquartered in Rochester, New York, The Getinge Group -- http://www.getinge.com/-- is a provider of equipment and systems to customers within health care, extended care and pharmaceutical industries/laboratories. The Group comprises three business areas: Medical Systems (systems for surgery and intensive care), Infection Control (system equipment for disinfection and sterilization) and Extended Care (care ergonomics). The Group maintains positions within the majority of the company's product lines. About Boston Scientific Headquartered in Natick, Massachusetts, Boston Scientific Corporation (NYSE: BSX) -- http://www.bostonscientific.com/-- develops, manufactures and markets medical devices used in a broad range of interventional medical specialties. The company has offices in Argentina, Chile, France, Germany, and Japan, among others. * * * As reported in the Troubled Company Reporter on Oct. 23, 2007, Standard & Poor's Ratings Services affirmed its ratings on Boston Scientific Corp. (including the 'BB+' corporate credit rating) and removed them from CreditWatch, where they were placed with negative implications Aug. 3, 2007. The rating outlook is negative. BROOKVILLE CDO: Moody's Junks Ratings on Two Note Classes --------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade these notes issued by Brookville CDO I Ltd. -- $200,000,000 Class A-1 First Priority Senior Secured Floating Rate Delayed Draw Notes Due 2050 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade In addition, Moody's announced that it has downgraded and left on review for possible downgrade these notes. -- $125,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2050 Prior Rating: Aaa Current Rating: A3, on review for possible downgrade -- $50,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes Due 2050 Prior Rating: Aaa Current Rating: Baa2, on review for possible downgrade -- $45,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes Due 2050 Prior Rating: Aa2 Current Rating: Ba1, on review for possible downgrade -- $28,000,000 Class C Fifth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 Prior Rating: A2 Current Rating: B3, on review for possible downgrade -- $17,000,000 Class D Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 Prior Rating: Baa2 Current Rating: Caa2, on review for possible downgrade -- $15,000,000 Class E Seventh Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 Prior Rating: Baa3 Current Rating: Caa3, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of asset- backed securities. C-BASS CBO: Moody's Cuts Rating on $10 Mil. Class D Notes to Ba2 ---------------------------------------------------------------- Moody's Investors Service placed these notes issued by C-Bass CBO XIX Ltd. on review for possible downgrade: -- $100,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $42,000,000 Class B Third Priority Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Aa2, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $23,000,000 Class C Fourth Priority Secured Floating Rate Deferrable Interest Notes Due 2047 Prior Rating: A2 Current Rating: Baa3, on review for possible downgrade -- $10,000,000 Class D Fifth Priority Secured Floating Rate Deferrable Interest Notes Due 2047 Prior Rating: Baa2 Current Rating: Ba2, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. CAIRN MEZZ: Moody's Cuts Ratings on Four Note Classes to Low-B -------------------------------------------------------------- Moody's Investors Service placed these notes issued by Cairn Mezz ABS CDO III Limited on review for possible downgrade: -- $75,000,000 Class A2A Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $148,000,000 Class A2B Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $67,000,000 Class B1 Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Aa2, on review for possible downgrade -- $11,000,000 Class B2 Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa3 Current Rating: Aa3, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $13,000,000 Class C1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: A1 Current Rating: Baa1, on review for possible downgrade -- $18,750,000 Class C2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: A2 Current Rating: Baa2, on review for possible downgrade -- $17,000,000 Class C3 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: A3 Current Rating: Baa3, on review for possible downgrade -- $17,000,000 Class D1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa1 Current Rating: Ba1, on review for possible downgrade -- $17,000,000 Class D2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa2 Current Rating: Ba2, on review for possible downgrade -- $17,000,000 Class D3 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa3 Current Rating: Ba3, on review for possible downgrade -- $9,250,000 Class E Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Ba1 Current Rating: B1, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. CATHOLIC CHURCH: Judge Adler Dismisses San Diego's Chapter 11 Case ------------------------------------------------------------------ The Hon. Louise DeCarl Adler of the U.S. Bankruptcy Court for the Southern District of California granted The Roman Catholic Bishop of San Diego's request to dismiss its Chapter 11 case but only after delivering a stinging rebuke to Diocesan officials, according to reports. Judge Adler said she planned to grant San Diego's Dismissal Request without comment but then, she received a letter from the Diocese asking her to help pay the $198,000,000 settlement with 144 sex-abuse victims, says The San Diego Union-Tribune. The judge said she does not object to Catholics being asked to contribute. However, she found the financial breakdown that was enclosed in the letter as "lacking candor." Judge Adler also scolded the Church for being "disingenuous" in reporting its finances to parishioners. "[T]here is ample property the Church could sell or mortgage to fund the settlement, like parking lots, houses and other holdings listed in court documents," Judge Adler said. "The diocese could have settled the claims without seeking bankruptcy . . . Chapter 11 is not supposed to be a vehicle, a method, to hammer down the claims of those abused." Judge Adler shed tears moments before delivering her ruling because some victims stepped forward to thank her, according to Union-Tribune reporters Sandi Dolbee and Mark Sauer. The Tribune says Church officials were disappointed by the judge's comments. San Diego Diocese Spokesman Rodrigo Valdivia insists that the financial breakdown is accurate. Objection Overruled Judge Adler overruled the objection to the Dismissal Request asserted by J. Brian Campbell, Esq., in Needles, California, on behalf of Dean A. and Wayne B. "As this case is being dismissed without any impact [with respect to] non-settled cases, plaintiffs Dean A. and Wayne B. retain their full state court rights to pursue litigation against [the Diocese]," Judge Adler said. Prior to the ruling, Irwin M. Zalkin, Esq., at Zalkin & Zimmer, LLP, in San Diego, California, informed the Court that pursuant to an initial case management order governing the coordinated proceedings in Clergy I and Clergy II cases, it was the responsibility of the defense counsel to provide the plaintiff's liaison counsel, Kiesel, Boucher & Larson, LLP, with the complaint's information. However, upon information and belief, he says, Mr. Campbell never served his original complaint, and only provided information from an amended complaint filed in 2004. Mr. Zalkin noted that during the mediation sessions of San Diego's bankruptcy case, a schedule of the 2003 and post-2003 cases were made available to all of the claimants' counsel present, including Mr. Campbell. However, neither Zalkin & Zimmer nor Judge Papas were made aware of any changes to the schedules by Mr. Campbell. The list of 2003 cases produced by Kiesel Boucher was compared to the Diocese's list by Judge Papas, and Mr. Campbell's two cases were not listed on either list. In addition, Mr. Zalkin told the Court that he and Michael H. Zimmer, Esq., attended the September 6, 2007 meeting -- where Mr. Campbell was advised by Judge Papas' clerk that he was not listed as an attendee. According to Mr. Zalkin, Mr. Campbell did not contact either him, Mr. Zimmer or Judge Papas on that day. The first time that Zalkin & Zimmer became aware of Mr. Campbell's cases was on September 7, through a phone call at approximately 2:30 p.m., followed by an e-mail. Professional Fees The Court reserved its jurisdiction to hear and determine fees of professionals. Judge Adler directed the Diocese to give notice of the deadline for all professionals to seek payment of fees, which fee applications will be heard at the next available and convenient date. "In court ruling-jurisdiction" is likewise reserved to allow Judge Papas to confirm the Memorandum of Understanding settlement, Judge Adler held. About the San Diego Diocese The Roman Catholic Diocese of San Diego in California -- http://www.diocese-sdiego.org/-- employs approximately 3,000 people in various areas of work. The Diocese filed for Chapter 11 protection just before commencement of the first of court proceedings for 140 sexual abuse lawsuits filed against the Diocese. Authorities of the San Diego Diocese said they were not in favor of litigating their cases. The San Diego Diocese filed for chapter 11 protection on Feb. 27, 2007 (Bankr. S.D. Calif. Case No. 07-00939). Gerald P. Kennedy, Esq., at Procopio, Cory, Hargreaves and Savitch LLP, represents the Diocese. Attorneys at Pachulski Stang Ziehl & Jones LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Diocese listed total assets of $152,510,888 and total liabilities of $72,754,092. On March 27, 2007, the Debtor filed its plan and disclosure statement. On March 7, 2007, San Diego filed an Amended Plan and Disclosure Statement and on March 8, the Court approved the adequacy of the Amended Disclosure Statement explaining the Amended Plan. On April 24, 2007, the Court confirmed the Debtor's Amended Plan. (Catholic Church Bankruptcy News, Issue No. 107; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/ or 215/945-7000). CETUS ABS: Moody's Junks Ratings on Five Note Classes ----------------------------------------------------- Moody's Investors Service placed these notes issued by Cetus ABS CDO 2006-3 Ltd. on review for possible downgrade: -- $757,000,000 Class A-1A Floating Rate Senior Secured Variable Funding Notes Due 2051 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $29,000,000 Class S Floating Rate Senior Secured Notes Due 2051 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $30,000,000 Class A-1B Floating Rate Senior Secured Notes Due 2051 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $163,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2051 Prior Rating: Aaa, on review for possible downgrade Current Rating: A2, on review for possible downgrade -- $90,000,000 Class B Floating Rate Secured Notes Due 2051 Prior Rating: Aa2, on review for possible downgrade Current Rating: Baa2, on review for possible downgrade -- $65,000,000 Class C-1 Floating Rate Deferrable Secured Notes Due 2051 Prior Rating: A2, on review for possible downgrade Current Rating: Caa1, on review for possible downgrade Moody's also announced that it has downgraded these notes: -- $26,000,000 Class C-2 Floating Rate Deferrable Secured Notes Due 2051, Downgraded to Ca from A3 Prior Rating: A3, on review for possible downgrade Current Rating: Ca -- $43,000,000 Class D-1 Floating Rate Deferrable Secured Notes Due 2051, Downgraded to Ca from Baa2 Prior Rating: Baa2, on review for possible downgrade Current Rating: Ca -- $8,000,000 Class D-2 Floating Rate Deferrable Secured Notes Due 2051, Downgraded to Ca from Baa3 Prior Rating: Baa3, on review for possible downgrade Current Rating: Ca -- $6,000,000 Class E Floating Rate Deferrable Secured Notes Due 2051 Prior Rating: Ba1, on review for possible downgrade Current Rating: Ca -- $15,500,000 Class X Fixed Rate Deferrable Secured Notes Due 2051 Prior Rating: Baa3, on review for possible downgrade Current Rating: Ba1, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of Cashflow CDOs, RMBS, CMBS, and ABS securities. CETUS ABS: Moody's Junks Ratings on Three Note Classes ------------------------------------------------------ Moody's Investors Service placed these notes issued by CETUS ABS CDO 2006-1 LTD. on review for possible downgrade: -- $100,000,000 Class A-1 Floating Rate Senior Secured Notes Due 2046 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $50,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2046 Prior Rating: Aa2, on review for possible downgrade Current Rating: Ba1, on review for possible downgrade Moody's also announced that it has downgraded these notes: -- $55,000,000 Class B Floating Rate Deferrable Subordinate Secured Notes Due 2046 Prior Rating: A2, on review for possible downgrade Current Rating: Ca -- $40,000,000 Class C Floating Rate Deferrable Junior Subordinate Secured Notes Due 2046, Downgraded to Ca from Baa2 Prior Rating: Baa2, on review for possible downgrade Current Rating: Ca -- $30,000,000 Class D Floating Rate Deferrable Junior Subordinate Secured Notes Due 2046 Prior Rating: Ba1, on review for possible downgrade Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of Cashflow CDOs, RMBS, CMBS, and ABS securities. CETUS ABS: Moody's Junks Ratings on Two Note Classes ---------------------------------------------------- Moody's Investors Service placed these notes issued by Cetus ABS CDO 2006-2 on review for possible downgrade: -- $100,000,000 Class A-1 Floating Rate Senior Secured Notes Due 2046 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $50,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2046 Prior Rating: Aa2, on review for possible downgrade Current Rating: Ba1, on review for possible downgrade Moody's also announced that it has downgraded these notes: -- $55,000,000 Class B Floating Rate Deferrable Subordinate Secured Notes Due 2046 Prior Rating: A2, on review for possible downgrade Current Rating: Ca -- $40,000,000 Class C Floating Rate Deferrable Junior Subordinate Secured Notes Due 2046 Prior Rating: Baa2, on review for possible downgrade Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of Cashflow CDOs, RMBS, CMBS, and ABS securities. CETUS ABS: Moody's Downgrades Ratings on Two Note Classes to Low-B ------------------------------------------------------------------ Moody's Investors Service placed these notes issued by Cetus ABS CDO 2006-4 Ltd. on review for possible downgrade: -- $150,000,000 Class A-1 Floating Rate Senior Secured Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $75,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2047 Prior Rating: Aa2 Current Rating: Aa2, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $82,500,000 Class B Floating Rate Deferrable Subordinate Secured Notes Due 2047 Prior Rating: A2 Current Rating: Ba3, on review for possible downgrade -- $60,000,000 Class C Floating Rate Deferrable Junior Subordinate Secured Notes Due 2047 Prior Rating: Baa2 Current Rating: B1, on review for possible downgrade Moody's also announced that it has downgraded these notes: -- $22,500,000 Class D Floating Rate Deferrable Junior Subordinate Secured Notes Due 2047 Prior Rating: Ba1 Current Rating: Ca -- $30,000,000 Class E Floating Rate Deferrable Junior Subordinate Secured Notes Due 2047 Prior Rating: Ba2, on review for possible downgrade Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of CDOs, RMBS, CMBS, and ABS securities. CII CARBON: Prices $235 Million Senior Subordinated Bonds --------------------------------------------------------- CII Carbon LLC, subsidiary of India's Rain Calcining Ltd., has priced its $235 million senior subordinated bonds due 2015, Reuters reports citing a source close to the deal. According to Reuters' source, the bonds, which will not be redeemable for four years, will have a yield of 11.125% and a spread of 672 basis points over similar Treasury issuance. Proceeds from the notes will be used to refinance the outstanding amount from a bridge loan availed to complete RCL's acquisition of CII. Rain Calcining acquired CII in July 2007 in a primarily cash transaction valued at $619 million. Headquartered in Kingwood, Texas, CII Carbon LLC is a producer of calcined coke globally with approximately 1.9mt capacity and seven operating locations in the United States. Headquartered in Hyderabad, India, Rain Calcining Ltd -- http://www.raincalcining.com/-- is one of the top five producers of calcined coke globally, and is the largest in Asia. It has an annual production capacity of 0.6 million tons, and its plant is located in Visakhapatnam (India). Aside from calcining, the company also operates in the power and trading segments. * * * As reported in the Troubled Company Reporter on Oct. 23, 2007, Moody's Investors Service assigned a B2 corporate family rating to CII Carbon LLC, and a B2 probability of default rating. At the same time, Moody's assigned a B1 rating to CII Carbon's secured bank facility and a B3 rating to CII's and CII Carbon Corp.'s (co- issuers) $235 million guaranteed senior subordinated notes due 2015. CITIUS II: Moody's Cuts Rating on $19 Mil. Class D Notes to Ba3 --------------------------------------------------------------- Moody's Investors Service placed these notes issued by Citius II Funding Ltd. on review for possible downgrade: -- $1,800,000,000 aggregate Principal Component of commercial paper notes Prior Rating: P-1 Current Rating: P-1, on review for possible downgrade -- $95,000,000 Class A Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $50,000,000 Class B Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Aa2, on review for possible downgrade In addition Moody's also announced that it has downgraded and left on review for possible downgrade these notes: -- $20,000,000 Class C Deferrable Floating Rate Notes Due 2047 Prior Rating: A2 Current Rating: Baa3, on review for possible downgrade -- $19,000,000 Class D Deferrable Floating Rate Notes Due 2047 Prior Rating: Baa2 Current Rating: Ba3, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. COGNIGEN NETWORKS: Buying Commission River Thru 16 Million Shares ----------------------------------------------------------------- Cognigen Networks Inc. has signed a Letter of Intent to acquire Commission River Inc. Under the Letter of Intent, Cognigen proposes to issue 16 million shares of its common stock for the acquisition. Cognigen also signed a management services agreement with Commission River to provide day-to-day management services for Cognigen's agent-based affiliate marketing business effective immediately. The acquisition is subject to standard closing conditions, including the completion of due diligence activities, drafting and execution of a definitive purchase agreement, and board of director approval. Upon completion of the acquisition, Cognigen intends to enter into employment agreements with Commission Rivers' founders, Adam Edwards and Patrick Oborn. "We are excited to expand our business with the addition of Commission River," Bob Bench, Cognigen's new CEO, stated. "Commission River and its management team bring the capabilities and experience in the affiliate marketing area that enhance Cognigen's existing abilities. We anticipate that this acquisition, if completed, will also add new technologies to Cognigen that will make it easier for agents and vendors to do business with us." "This is the first of several initiatives to re-establish our capabilities to support our agents and re-build confidence," Mr. Bench added. "We believe Cognigen will greatly benefit from the wealth of Internet marketing and affiliate management experience of the Commission River management team. We also believe that Commission River will provide interim operational services while we work towards completing the acquisition. If the acquisition is completed, we anticipate that our agents will benefit from the added support resources and future product offerings." "We are excited about the opportunity to combine our business with Cognigen," Adam Edwards, president of Commission River, said. "We share their vision to become one of the leaders in the affiliate marketing space and believe that the combination of our technology, processes, and program with Cognigen's programs and agent base will create tremendous opportunities for all involved - - including agents, vendors and both companies. Under the management services agreement, we can immediately step-in and provide management support to the business." About Commission River Headquartered in Draper, Utah, Commission River Inc. -- http://www.commissionriver.com/-- is an online pay-per-action marketing network that gathers customers for select vendors. Commission River provides marketing tools, training, and tracking that enables online affiliates the ability to drive leads using blogs, paid search, and organic search engine optimization techniques. Commission River likewise creates software that enables affiliates the ability to coordinate, cross-link, and share ideas with each other in a close-knit community whose emphasis is on mutual success. The company was founded in 2005. About Cognigen Networks Based in Mountlake Terrace, Washington, Cognigen Networks Inc. (OTC BB:CGNW.OB) -- http://www.cognigen.net/-- operates as an Internet and relationship enabled marketer. It offers a range of telecommunication services and r