T R O U B L E D C O M P A N Y R E P O R T E R Thursday, November 8, 2007, Vol. 11, No. 265 Headlines 7871 INC: Case Summary & Seven Largest Unsecured Creditors ABSC HOME: Fitch Pares Ratings on Four Cert. Classes to Low-B ACA ABS: Moody's Cuts Ratings on Three Note Classes to Low-B ACA ABS: Moody's Junks Ratings on Three Note Classes ALLIANT HOLDINGS: S&P Lifts Issuer Rating to B from B- AMERICA COMMERCIAL: S&P Puts Low-B Ratings on Six Cert. Classes AMWINS GROUP: Junk Rating Not Affected by S&P's Recovery Ratings APRIA HEALTHCARE: Moody's Holds Ba2 Corporate Family Rating ARETHA VALENTINE: Case Summary & 19 Largest Unsecured Creditors ARROWHEAD GENERAL: S&P Puts '3' Recovery Rating on $130MM Loan ARTISAN MILLWORKS: Case Summary & 20 Largest Unsecured Creditors AUGUSTA PEAK: Moody's Junks Rating on $11.25 Million Swap Notes AUTOCAM CORP: S&P Withdraws Ratings at Company's Request BARRAMUNDI CDO: Moody's Cuts Ratings on 3 Note Classes to Low-B BARRINGTON II: Moody's Pares Baa2 Rating on Class D Notes to Ba3 BEAR STEARNS: Investors to Vote to Oust Bear Stearns Directors BEAR STEARNS: Judge Lifland Postpones Ruling on BofA's Request BEAR STEARNS: Massachusetts Regulators Probe On Funds' Trading BIOPURE CORP: Completes $14.9 Mil. Offering of Stock & Warrants BISON PEAK: Moody's Junks Rating on $11.25 Million Swap Notes BLOCK COMMUNICATIONS: S&P Holds All Ratings and Revises Outlook BLOOMFIELD ESTATES: Case Summary & 5 Largest Unsecured Creditors BNC MORTGAGE: Fitch Affirms Low-B Ratings on Two Cert. Classes BRE PROPERTIES: S&P Affirms All Ratings with Stable Outlook BROTMAN MEDICAL: Gets Initial Nod to Access $19.8 Mil. Financing BUFFETS HOLDINGS: Sept. 19 Balance Sheet Upside-Down by $192 Mil. BUFFETS HOLDINGS: S&P Cuts Corp. Credit Rating to CCC from CCC+ BUNGE LTD: S&P Rates $750 Million Preference Shares at BB C-BASS CBO: Moody's Pares Low-B Ratings on $30.5 Mil. Class Notes CALVIN CASHAN: Case Summary & 11 Largest Unsecured Creditors CAMBER 6: Moody's Cuts Ratings on Two Note Classes to Low-B CARIBOU PEAK: Moody's Junks Rating on $11.25 Mil. Swap Notes CARRINGTON MORTGAGE: Fitch Cuts Ratings on Four Classes to Low-B CARROLL COUNTY: Diminishing Losses Cue S&P to Revise Outlook CENTER FOR EDUCATION: Case Summary & 16 Largest Unsec. Creditors CHERRY CREEK: Moody's Junks Rating on $7 Million Class C Notes CHRYSLER LLC: Lenders Selling $4 Billion Loans at a Discount CINRAM INT'L: S&P Places Corp. Credit & Bank Loan Ratings at BB- COLLIER DEVELOPMENT: Case Summary & Largest Unsecured Creditor COOKSON SPC: Moody's Junks Rating on $20 Mil. Series 2007-7 Notes COMM 2006-FL12: Fitch Affirms Low-B Ratings on Two Cert. Classes COOKSON SPC: Moody's Junks Rating on $20 Mil. Series 2007-8 Notes CREDIT BASED: Fitch Downgrades Ratings on Five Certificate Classes CSFB HEAT: Fitch Junks Ratings on Three Certificate Classes CULEBRA SA: Voluntary Chapter 11 Case Summary CWALT INC: Moody's Junks Ratings on 22 Certificate Classes DADE BEHRING: Completes $77/Share Buyout Deal with Siemens AG DAVID WOODFORD: Case Summary & Nine Largest Unsecured Creditors DELPHI CORP: Wants to Use $4.4 Bil. DIP Financing Until Sept. 2008 DESERT SPA: Case Summary & Four Largest Unsecured Creditors DUTCH HILL: Moody's Reviews Ba2 Rating on Class D-3 Notes E*TRADE VI: Poor Credit Quality Cues Moody's Ratings Review ECO2 PLASTICS: Sept. 30 Balance Sheet Upside-Down by $5.4 Million EMI GROUP: Terra Firma Leads Strategic Review to Recover Equity EMI GROUP: Terra Firma Eyes Artists' Compensation Overhaul EXCO RESOURCES: Earns $10.7 Mil. in Third Quarter Ended Sept. 30 FERRO CORP: Initiates Next Step in European Restructuring FLEXTRONICS INTERNATIONAL: Solectron Alters Repurchase Offer FORTIUS II: Moody's Junks Rating on $7.5 Million Class E Notes FREDERICK DAVEN: Case Summary & Three Largest Unsecured Creditors GERDAU AMERISTEEL: Declares $.02 Cash Dividend Payable Dec. 12 GERDAU AMERISTEEL: Discloses Offering of 110 Million Common Shares GERDAU AMERISTEEL: Earns $123.8 Million in 3rd Qtr. Ended Sept. 30 GILLESPIE ACQUISITION: Case Summary & 30 Largest Unsec. Creditors GLACIER FUNDING: Moody's Junks Rating on $6.5 Mil. Class G Notes GILMER ROAD: Case Summary & Five Largest Unsecured Creditors GLOBAL SHIP SYSTEMS: Involuntary Chapter 11 Case Summary GOODYEAR TIRE: Earns $668 Million in Third Quarter 2007 GOODYEAR TIRE: Commences Offer to Exchange 4% Conv. Senior Notes GRAYS PEAK: Moody's Junks Rating on $11.25 Million Swap Notes GREAT ATLANTIC: S&P May Lift Ratings on Planned 11.7MM Stake Sale GSC CDO: Moody's Junks Ratings on Three Note Classes HARTSHORNE CDO: Moody's Cuts Ratings on Four Note Classes to Low-B HASCO MORTGAGE: Fitch Junks Ratings on Three Certificate Classes HEALTH MANAGEMENT: S&P Revises Outlook to Negative from Stable HEXION SPECIALTY: Closes German Resins Business Acquisition HG-COLL: Moody's Cuts Rating on $14 Mil. Class B-1L Notes to B1 HMSC CORP:S&P Says Recovery Rating Has No Effect on Debt Ratings HUB INTERNATIONAL: S&P Upgrades Credit Rating to B+ from B HUB TECH: Case Summary & 20 Largest Unsecured Creditors HUDSON MEZZANINE: Moody's Junks Rating on $4 Mil. Class E Notes ICONIX BRAND: Third Qtr. 2007 Net Income Climbs to $17 Million INDYMAC ABS: Fitch Junks Ratings on $35.1 Million Cert. Classes INSIGHT COMMS: Earns $143.6 Million in Quarter Ended September 30 INTERSTATE BAKERIES: Wants Exit Facility Objections Overruled INTERSTATE BAKERIES: Court Approves Plan Funding Commitment IXION PLC: Moody's Junks Rating on $30 Million Secured Notes IXION PLC: Moody's Junks Rating on $72.5 Million Secured Notes IXIS ABS: Poor Credit Quality Prompts Moody's Ratings Review IXIS REAL: Fitch Junks Ratings on $21.7 Million Cert. Classes JAMES GREER: Case Summary & 13 Largest Unsecured Creditors JAMES GROCE: Case Summary & 14 Largest Unsecured Creditors JAMES RATHMANN: Case Summary & 20 Largest Unsecured Creditors JNJ FOUNDATION: Case Summary & 20 Largest Unsecured Creditors JOHN KILL: Voluntary Chapter 11 Case Summary JP MORGAN: Fitch Holds Low-B Ratings on Four Cert. Classes KENDLE INTERNATIONAL: Earns $3.8 Million for Third Quarter 2007 KENDLE INTERNATIONAL: Moody's Holds B1 Corporate Family Rating KLEROS PREFERRED: Moody's Cuts Rating on Class B Notes to B3 LACERTA ABS: Moody's Junks Ratings on $70 Million Secured Notes LAGUNA SECA: Poor Credit Quality Prompts Moody's Ratings Review LARRY CATHEY: Case Summary & 16 Largest Unsecured Creditors LAZARD LTD: Sept. 30 Balance Sheet Upside-Down by $74.5 Million LEAR CORP: Earns $41 Million in Third Quarter Ended Sept. 29 LESLIE JOHNSON: Voluntary Chapter 11 Case Summary LEVITT CORP: Investors See Homebuilding Unit Filing for Bankruptcy LEVITZ HOME: May File Chapter 11 Petition This Week, Sources Say LIBERTAS PREFERRED: Moody's Junks Rating on $10.5MM Class F Notes LIONEL LLC: Exclusive Plan Filing Period Extended to December 17 MASTEC INC: Posts $32.1 Million Net Loss in Quarter Ended Sept. 30 MATTRESS GALLERY: Section 341(a) Meeting Slated for December 5 MATTRESS GALLERY: Wants December 15 Set as General Claims Bar Date MATTRESS GALLERY: Wants Until December 17 to File Schedules MBS MANAGEMENT: Case Summary & 14 Largest Unsecured Creditors MCMORAN EXPLORATION: Moody's Puts Corporate Family Rating at B3 MEDFORD CROSSINGS: Court Approves Obermayer Rebmann as Counsel MEDFORD CROSSINGS: Files List of 20 Largest Unsecured Creditors MEDFORD CROSSINGS: Section 341(a) Meeting Slated for November 29 MID-AMERICA INSULATION: Case Summary & 20 Largest Unsec. Creditors MORGAN STANLEY: S&P Puts Low-B Ratings on Six Certificate Classes MOVIE GALLERY: Bankruptcy Cues Moody's to Withdraw Ratings MUELLER WATER: US Pipe Unit to Close NJ Operations, Cuts 180 Jobs MUGELLO ABS: Moody's Junks Rating on $20 Million Class C Notes NASDAQ STOCK: To Buy Philadelphia Stock Exchange for $625 Mil. NEW CENTURY: Wants Stay Lifted to Terminate NCMC Obligations NEW ERA: Closes Door Under Chapter 7 Bankruptcy, Counsel Says NOVELIS INC: Realm Communications Completes Rebranding NOVELIS INC: Intends to Invest $7 Million for Brazilian Plant OCEAN DOVE: Voluntary Chapter 11 Case Summary PARCS-R: Moody's Lowers Rating on $25 Mil. Funding Units to Ba2 PLAINS EXPLORATION: Completes $3.6 Bil. Buyout of Pogo Producing PLAINS EXPLORATION: Closed Pogo Deal Cues S&P to Hold BB Rating POGO PRODUCING: Closes $3.6BB Buyout Deal with Plains Exploration POGO PRODUCING: Closed Buyout Deal Cues S&P to Withdraw BB Rating POPE & TALBOT: S&P Withdraws Default Corp. Credit Rating PRIDE INT'L: Earns $401.5 Million for Quarter Ended Sept. 30 PRIMARY ENERGY: Discloses Likely Default on Senior Credit Facility PRIMUS TELECOMMS: Has $445.6 Million Equity Deficit at Sept. 30 PRODIGY HEALTH: S&P Cuts Counterparty Credit Rating to B from B+ PROQUEST LLC: Moody's Places Corporate Family Rating at B1 PROQUEST LLC: S&P Assigns 'B+' Rating with Stable Outlook PTARMIGAN PEAK: Moody's Junks Rating on $11.25 Million Swap Notes PYXIS ABS: Moody's Junks Rating on $18 Million Class F Notes QMED INC: Lack of Added Capital Prompts Job Cut by One-Third RAINIER CBO: S&P Lifts Ratings and Removes Positive CreditWatch RASC MORTGAGE: Fitch Pares Ratings on 7 Cert. Classes to Low-B RESCARE INC: Earns $11.5 Million in Third Quarter Ended Sept. 30 REVLON INC: Sept. 30 Balance Sheet Upside-Down by $1.15 Billion ROGELIO SORRENTINI: Case Summary & 19 Largest Unsecured Creditors SCO GROUP: Seeks Court OK to Expand Mesirow's Scope of Services SCO GROUP: Taps CFO Solutions for Chief Financial Officer Search SCO GROUP: Wants to Employ Tanner LC as Accountants SECURITIZED ASSET: Fitch Takes Rating Actions on Three Deals SENSATA TECH: Incurs $86.7 Million Net Loss in Third Quarter 2007 SHERWOOD III: Moody's Junks Ratings on Four Note Classes SOLOMON DWEK: Chap. 11 Trustee Sets November 13 Auction of Assets SOMAN PHILIPS: Voluntary Chapter 11 Case Summary SOUNDVIEW HOME: Fitch Junks Ratings on Six Certificate Classes SOUTHAVEN POWER: Wants Excl. Plan Filing Period Moved to Jan. 15 SPEEDWAY MOTORSPORTS: Moody's Holds Ba1 Corporate Family Rating COOKSON SPC: Moody's Junks Rating on $20 Mil. Series 2007-9 Notes ST. GERMAIN: Fitch Cuts Rating on $250 Million Capital Notes to B STRUCTURED ASSET: Fitch Junks Ratings on Three Certificate Classes SUMMERWIND AT THE BLUFF: Judge Nugle Dismisses Chapter 11 Case TABS 2007-7: Moody's Junks Ratings on Four Note Classes TENET HEALTHCARE: Posts $59 Million Net Loss in Third Quarter TEREX CORP: Moody's Rates New $500 Mil. Subordinate Notes at Ba3 TEREX CORP: S&P Affirms BB Corporate Credit Rating TERM CDO: Moody's Cuts Low-B Ratings on $30 Million Class Notes TRIAXX FUNDING: Fitch Junks Ratings on Classes C & D Notes TRINA INC: Case Summary & Eight Largest Unsecured Creditors TWG HUNTINGTON: Case Summary & 12 Largest Unsecured Creditors UNIV. OF QUEBEC: Auditor Says Montreal Campus Nears Bankruptcy USI HOLDINGS: S&P Lifts Issue Rating on Two Facilities to B VINCENT KRALYEVICH: Case Summary & 9 Largest Unsecured Creditors WACHOVIA BANK: Credit Enhancement Cues S&P to Affirm Ratings WAYCROSS AREA: Case Summary & Three Largest Unsecured Creditors WELLS FARGO: Fitch Pares Ratings on Three Cert. Classes to Low-B WINDSOR TDS LP: Voluntary Chapter 11 Case Summary YUKOS FINANCE: Dutch Court Nullifies Bankruptcy Sale YUKOS OIL: Completes Payment to Bankruptcy Creditors YOUBET.COM: Ends Service Pact with David Marshall to Cut Costs YOUBET.COM: Wells Fargo Waives Default in $19 Mil. Credit Facility * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 7871 INC: Case Summary & Seven Largest Unsecured Creditors ---------------------------------------------------------- Debtor: 7871, Inc. 1171 Southeast 10th Avenue Hialeah, FL 33010 Bankruptcy Case No.: 07-19561 Type of Business: The Debtor provides transportation services. See http://www.7871bus.com/7871.htm/ Chapter 11 Petition Date: November 2, 2007 Court: Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Brian S. Behar, Esq. Behar, Gutt & Glazer, P.A. 2999 Northeast 191 Street, 5th Floor Aventura, FL 33180 Tel: (305) 931-3771 Estimated Assets: $10,000 to $100,000 Estimated Debts: $1 Million to $100 Million Debtor's list of its Seven Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Port Consolidated $180,000 3141 Southeast 14th Avenue P.O. Box 350430 Fort Lauderdale, FL 33335 @ Road $10,784 47071 Bayside Parkway Freemont, CA 94538 Sprint/Nextel $7,073 6330 Gulfton Houston, TX 77081 Aequipac Program Adm., Inc. $6,283 T-Mobile $5,676 American Industrial Motorworks $1,388 Fred W. Newcombe $1,312 ABSC HOME: Fitch Pares Ratings on Four Cert. Classes to Low-B ------------------------------------------------------------- Fitch Ratings took these rating actions on ABSC Home Equity Loan Trust 2007-HE1. Affirmations total $434.9 million and downgrades total $141.3 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: ABSC 2007-HE1 -- $434.9 million class A affirmed at 'AAA' (BL: 39.37, LCR: 2.48); -- $27.5 million class M1 downgraded to 'AA' from 'AA+' (BL: 34.87, LCR: 2.19); -- $25.4 million class M2 downgraded to 'AA-' from 'AA+' (BL: 30.6, LCR: 1.93); -- $14.4 million class M3 downgraded to 'AA-' from 'AA' (BL: 28.15, LCR: 1.77); -- $13 million class M4 downgraded to 'A+' from 'AA-' (BL: 25.92, LCR: 1.63); -- $12.3 million class M5 downgraded to 'A' from 'A+' (BL: 23.81, LCR: 1.5); -- $11.3 million class M6 downgraded to 'BBB+' from 'A' (BL: 21.58, LCR: 1.36); -- $10.9 million class M7 downgraded to 'BBB' from 'A-' (BL: 19.23, LCR: 1.21); -- $8.8 million class M8 downgraded to 'BB' from 'BBB' (BL: 17.16, LCR: 1.08); -- $4.9 million class M9 downgraded to 'BB' from 'BBB' (BL: 15.92, LCR: 1); -- $4.9 million class M10 downgraded to 'B' from 'BBB-' (BL: 14.75, LCR: 0.93); -- $7.4 million class M11 downgraded to 'B' from 'BB' (BL: 13.36, LCR: 0.84). Deal Summary -- Originators: 100% RFC -- 60+ day Delinquency: 12.25%; -- Realized Losses to date (% of Original Balance): 0.05%; -- Expected Remaining Losses (% of Current Balance): 15.89%; -- Cumulative Expected Losses (% of Original Balance): 13.37 %. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. -- 'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007); -- 'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12, 2007). ACA ABS: Moody's Cuts Ratings on Three Note Classes to Low-B ------------------------------------------------------------ Moody's Investors Service downgraded seven classes of notes issued by ACA ABS 2007-2 Ltd., with six of these classes left on review for further possible downgrade. In addition, Moody's placed one class of notes issued by ACA ABS 2007-2 Ltd. on review for possible downgrade. The notes affected by the rating action are: -- $33,600,000 Class X Senior Secured Fixed Rate Notes due July 2010; Prior Rating: Aaa Current rating: Aaa on review for possible downgrade -- Up to $375,000,000 Class A1 S Variable Funding Senior Secured Floating Rate Notes due July 2045; Prior Rating: Aaa Current rating: Baa2 on review for possible downgrade -- $60,000,000 Class A1 M Senior Secured Floating Rate Notes due July 2045; Prior Rating: Aaa Current rating: Ba1 on review for possible downgrade -- $150,000,000 Class A1 J Senior Secured Floating Rate Notes due July 2045; Prior Rating: Aaa Current rating: Ba2 on review for possible downgrade -- $40,000,000 Class A2 Senior Secured Floating Bate Notes due July 2045; Prior Rating: Aa2 Current rating: B1 on review for possible downgrade -- $40,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes due July 2045; Prior Rating: A2 Current rating: Caa1 on review for possible downgrade -- $42,000,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes due July 2045; Prior Rating: Baa2 Current rating: Caa2 on review for possible downgrade -- $8,000,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes due July 2045; Prior Rating: Baa3 Current rating: Ca The rating actions reflect severe deterioration in the credit quality of the underlying portfolio, as well as the occurrence on Oct. 16, 2007 of an event of default caused by a failure of the Senior Credit Test per Section 5.1(h) of the Indenture, dated June 28, 2007. ACA ABS 2007-2 Ltd. is a hybrid collateralized debt obligation backed primarily by a portfolio of RMBS securities, CDO securities and synthetic securities in the form of credit default swaps. Reference obligations for the credit default swaps are RMBS and CDO securities. Recent ratings downgrades on the underlying portfolio magnified the impact of the ratings-based haircuts, causing the Senior Credit Test to fail. Upon an event of default in this transaction, a majority of the holders of the Class A1-S Notes is entitled to determine which remedy to exercise under the indenture. Liquidation of the underlying portfolio is one possible remedy; however, it is not clear at this time whether such Noteholders will choose to exercise this option. The rating actions taken today reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The expected losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued. Because of this uncertainty, the Class X, Class A1 S, Class A1 M, Class A1 J, Class A2, Class A3 and Class B1 Notes remain on review for possible downgrade pending the receipt of definitive information. 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 2007-3, Limited -- $7,000,000 Class X Floating Rate Notes Due August 2013 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $175,000,000 Class A-1LA Floating Rate Notes Due May 2047 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: -- $96,000,000 Class A-1LB Floating Rate Notes Due May 2047 Prior Rating: Aaa Current Rating: Baa1, on review for possible downgrade -- $27,000,000 Class A-2L Floating Rate Notes Due May 2047 Prior Rating: Aa2 Current Rating: Baa2, on review for possible downgrade -- $6,000,000 Class A-3L Floating Rate Notes Due May 2047 Prior Rating: Aa3 Current Rating: Baa3, on review for possible downgrade -- $7,000,000 Class A-4L Floating Rate Notes Due May 2047 Prior Rating: A2 Current Rating: B3, on review for possible downgrade -- $6,000,000 Class A-5L Floating Rate Notes Due May 2047 Prior Rating: A3 Current Rating: Caa1, on review for possible downgrade -- $5,500,000 Class B-1L Floating Rate Notes Due May 2047 Prior Rating: Baa2 Current Rating: Caa2, on review for possible downgrade -- $5,000,000 Class B-2L Floating Rate Notes Due May 2047 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. ALLIANT HOLDINGS: S&P Lifts Issuer Rating to B from B- ------------------------------------------------------ Standard & Poor's Ratings Services assigned its recovery rating of '2' to Alliant Holdings Inc.'s (Alliant; B-/Stable/--) $385 million senior secured term loan B due 2014 and its $60 million revolving credit facility due 2013. The '2' recovery rating indicates that the lenders can expect substantial (70%-90%) recovery of principal in the event of payment default. "As a result of this rating action, Standard & Poor's also raised the issue rating on these two facilities to 'B' from 'B-', one notch higher than the counterparty credit rating," said Standard & Poor's credit analyst Tracy Dolin. These rating actions reflect Standard & Poor's review of a simulated default scenario that contemplates a payment default resulting from financial pressures due to Alliant's increased financial leverage and weakened fixed-charge coverage following its acquisition by The Blackstone Group. Financial flexibility is expected to diminish significantly. Under financial distress, Alliant could experience sharp cash flow declines resulting from the loss of customers from one or more of the company's sizable managing general agent programs. The recovery rating analysis also anticipates the normal stresses associated with insurance brokers: impaired customer relationships, regulatory pressures, legal disputes, carrier consolidation, restricted access to carriers, and agent misconduct. AMERICA COMMERCIAL: S&P Puts Low-B Ratings on Six Cert. Classes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Banc of America Commercial Mortgage Trust 2007-4's $2.24 billion commercial mortgage pass-through certificates series 2007-4. The preliminary ratings are based on information as of Nov. 6, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Classes A-1, A-2, A-3, A-SB, A-4, A-1A, A-M, and A-J are currently being offered publicly. Standard & Poor's analysis of the portfolio determined that, on a weighted average basis, the pool has a debt service coverage of 1.35x, a beginning LTV of 112.3%, and an ending LTV of 107.3%. The rated final maturity date for these certificates is Feb. 10, 2051. Preliminary Ratings Assigned Banc of America Commercial Mortgage Trust 2007-4 Class Rating Amount Recommended credit support ----- ------ ------ ---------------- A-1 AAA $27,809,000 30.000% A-2 AAA $78,306,000 30.000% A-3 AAA $287,473,000 30.000% A-SB AAA $72,686,000 30.000% A-4 AAA $823,220,000 30.000% A-1A AAA $278,019,000 30.000% A-M AAA $223,920,000 20.000% A-J AAA $179,152,000 12.000% XW* AAA $2,239,301,788 N/A B AA+ $22,393,000 11.000% C AA $19,594,000 10.125% D AA- $22,393,000 9.125% E A+ $22,393,000 8.125% F A $13,996,000 7.500% G A- $16,794,000 6.750% H BBB+ $27,991,000 5.500% J BBB $22,394,000 4.500% K BBB- $19,594,000 3.625% L BB+ $13,995,000 3.000% M BB $5,598,000 2.750% N BB- $5,599,000 2.500% O B+ $5,598,000 2.250% P B $5,598,000 2.000% Q B- $5,599,000 1.750% S NR $39,187,788 0.000% *Interest-only class with a notional amount. N/A -- Not applicable. NR -- Not rated. AMWINS GROUP: Junk Rating Not Affected by S&P's Recovery Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services assigned a recovery rating of '3' to AmWINS Group Inc.'s (B-/Stable/--) $285 million first-lien term loan due 2013 and its $50 million revolving credit facility due 2012. The '3' recovery rating indicates that the lenders can expect meaningful recovery of principal in the event of payment default. Standard & Poor's also said that it assigned a recovery rating of '6' to the company's $100 million second-lien term loan due 2014. The '6' recovery rating indicates that the lenders can expect negligible (0%-10%) recovery of principal in the event of payment default. The subordinated debt rating on this loan is two notches lower than the counterparty credit rating. The assignment of the recovery ratings has no effect on the debt ratings on the first-lien term loan (B-), revolving credit facility (B-), or second-lien term loan (CCC). "These recovery ratings reflect our review of a simulated default scenario that contemplates a payment default resulting from financial pressures because of AmWINS's increased financial leverage and weakened fixed-charge coverage following its American Equity Underwriters acquisition," explained Standard & Poor's credit analyst Tracy Dolin. S&P expect that AmWINS's financial flexibility will diminish significantly, as demonstrated by a significant increase in financial leverage to 87% after the acquisition from 51% prior to this event. Under financial distress, AmWINS could experience sharp cash flow declines because of the potential loss of customers as the organization faces the challenge of integrating AEU. S&P's recovery rating analysis also anticipates the normal stresses associated with the insurance brokers: impaired customer relationships, regulatory pressures, legal disputes, carrier consolidation, restricted access to carriers and agent misconduct. APRIA HEALTHCARE: Moody's Holds Ba2 Corporate Family Rating ----------------------------------------------------------- Moody's affirmed the Ba2 corporate family rating of Apria but changed the ratings outlook to negative from stable. Moody's also assigned a B1 rating to the proposed $265 million senior unsecured notes to be issued to partially fund the acquisition of Coram. The negative outlook reflects the continued and ongoing unfavorable Medicare regulatory reimbursement changes. The change in outlook also incorporates Moody's concern about the potential impact from the expansion of the Medicare competitive bidding system for medical equipment to a national basis in 2009 and the loss of revenue from shortening on the length of service for oxygen therapy commencing in 2009. Moody's is also concerned that additional unfavorable reimbursement changes may be implemented, which may further constrain Apria's revenue and cash flow. Moody's also believes that the proposed Coram acquisition will increase the financial risk of the company. While Apria is increasing outstanding debt by over $300 million to fund the acquisition, the incremental EBITDA contribution excluding synergies is minimal given the low margins of the infusion business. Partially offsetting these risks, the proposed acquisition of Coram establishes Apria as a leader in providing home infusion services, expands the company's current product and service offering, and diversifies the company's revenue and payer mix. Moody's also notes that the company's credit metrics, including cash flow coverage of debt and Debt/EBITDA has improved noticeably over the past eighteen months due to an acceleration in the rate of revenue growth, lower operating expenses, a meaningful reduction in outstanding leverage from $685 million at the end of 2005 to $385 million at Sept. 30, 2007, and a significant curtailment in the level of acquisition and share repurchase activity. Lastly, lower operating expenses associated with the company's restructuring initiatives were able to mostly offset the impact of lower managed care pricing and unfavorable Medicare reimbursement changes, resulting in fairly stable operating margins Moody's took these ratings actions: -- Affirmed the Ba2 Corporate Family rating -- Assigned a B1,LGD5, 88 rating to $265 million of Senior Notes, due 2017 -- Assigned a Probability of Default Rating of Ba2 The outlook of the rating was changed to negative from stable. Apria Healthcare Group Inc., headquartered in Lake Forest, California, provides respiratory therapy, home infusion and home medical equipment. Revenues were almost $1.6 billion for the twelve months ended Sept. 30, 2007. ARETHA VALENTINE: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtors: Aretha L. Valentine Brian K. Valentine, Sr. 4140 Lakeview Drive Chesapeake, VA 23323 Bankruptcy Case No.: 07-72566 Chapter 11 Petition Date: November 5, 2007 Court: Eastern District of Virginia (Norfolk) Judge: David H. Adams Debtors' Counsel: Seth A. Schoenfeld, Esq. John W. Lee, P.C. 544 Newtown Road, Suite 134 Virginia Beach, VA 23462 Tel: (757) 961-8553 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' list of its 19 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Internal Revenue Service $146,000 P.O. Box 21126 Philadelphia, PA 19114-0326 American Express Business Gold $85,000 P.O. Box 7863 Fort Lauderdale, FL 33329 Home Theatres By DAS LLC $26,651 805 Live Oak Drive Suite 101 Cheaspeake, VA 23320 Department of Taxation $15,000 Navy Federal Cr Un Visa $10,032 Hardwood Concepts $10,000 Savage and McPherson Ins $10,000 GE Money Bank $9,166 Art-Ray Corporation $8,000 Navy Federal Cr Un Visa $7,599 Tim Watson DBA Brickstone Stud $7,155 TCS Materials Inc $6,914 Custom Vinyl Products $6,000 GE Capital-Consumer Direct $6,000 Batchleder and Collins, Inc. $5,000 BIAI $5,000 Tidewater Insulators, LLC $4,700 National Financial Group $3,364 The Contractor Yard $3,000 Dell Financial Services $2,647 ARROWHEAD GENERAL: S&P Puts '3' Recovery Rating on $130MM Loan -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its recovery rating of '3' to Arrowhead General Insurance Agency Inc.'s $130 million first-lien term loan due 2012 and $15 million revolving credit facility due 2011. The '3' recovery rating indicates that the lenders can expect meaningful (50%-70%) recovery in the event of payment default. At the same time, Standard & Poor's assigned its recovery rating of '6' to Arrowhead's $40 million second-lien term loan due 2013. The '6' recovery rating indicates that the lenders can expect negligible (0%-10%) recovery of principal in the event of payment default resulting in a subordinated debt rating two notches lower than the counterparty credit rating. These recovery-rating assignments reflect Standard & Poor's review of a simulated default scenario that contemplates a payment default resulting from potentially increased financial stress. "There are no rating implications for the existing 'B' counterparty, first-lien term loan and revolving credit facility ratings or the existing 'CCC+' rating on the second-lien term loan," said Standard & Poor's credit analyst Michael Gross. "Standard & Poor's expectations for Arrowhead include net income of $10 million or more in 2007 and again in 2008, as well as a healthy EBITDA margin in the range of 28%-32%," said Mr. Gross. "We expect the company to produce low fixed-charge coverage of 2.0x and adjusted EBITDA coverage of 2.4x for the full year 2007." ARTISAN MILLWORKS: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Artisan Millworks, Inc. P.O. Box 1097 Magnolia, TX 77353 Bankruptcy Case No.: 07-37673 Chapter 11 Petition Date: November 5, 2007 Court: Southern District of Texas (Houston) Judge: Karen K. Brown Debtor's Counsel: Larry A. Vick, Esq. 800 West Sam Houston Parkway South Suite 100 Houston, TX 77042 Tel: (713) 333-6440 Fax: (713) 236-1342 Total Assets: $2,368,905 Total Debts: $1,437,691 Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service 941 Taxes $379,322 P.O. Box 21126 Philadelphia, PA 19114 Cedar Creek, Inc. Business Purchase $45,662 13810 Hollister, Suite 130 Houston, TX 77086 Law Office of Larry A. Vick Attorney Fees $25,000 800 West Sam Houston Parkway Suite 100 Houston, TX 77042 Hogan Hardware and Business Purchase $15,772 Moulding, Inc. McKillican American, Inc. Business Purchase $14,702 Renee Barnhill Consumer Purchase $12,708 Louis and Company Business Purchase $12,200 Frank Paxton Business Purchase $8,709 Luxe Magazine Business Purchase $6,980 Nationwide Credit, Inc. Business Purchase $5,418 St. Paul Travelers Business Purchase $4,969 CL & Specialty Stiles Machinery, Inc. Business Purchase $4,680 American Finishing Products Business Purchase $4,428 Leonel Hernandez Business Purchase $2,889 Hansen & Hundebol Inc. Business Purchase $2,827 Brazos Forest Products Business Purchase $2,421 Texas Attorney General State Property Damage $1,395 Cook's Sharpening Service Business Purchase $1,044 Wood Finishers Depot Business Purchase $1,038 Cornerstone Hardware & Supplies Business Purchase $741 AUGUSTA PEAK: Moody's Junks Rating on $11.25 Million Swap Notes --------------------------------------------------------------- Moody's Investors Service downgraded and placed these notes issued by Portfolio Credit Default Swap (Augusta Peak Mezzanine Swap) on review for possible downgrade: -- $11,250,000 Initial Tranche Notional Amount Credit Default Swap Prior Rating: Ba3 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 structured finance securities. AUTOCAM CORP: S&P Withdraws Ratings at Company's Request -------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' corporate credit rating on Kentwood, Michigan-based Autocam Corp. At the same time, Standard & Poor's withdrew its 'B+' rating on Autocam's senior secured credit facilities. The ratings were withdrawn at the company's request. BARRAMUNDI CDO: Moody's Cuts Ratings on 3 Note Classes to Low-B --------------------------------------------------------------- Moody's Investors Service placed these notes issued by Barramundi CDO I Ltd. on review for possible downgrade: -- Up to $540,400,000 Class A-1 Senior Secured Floating Rate Notes Due December 2051 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $56,000,000 Class A-2 Senior Secured Floating Rate Notes Due December 2051 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $76,000,000 Class B Senior Secured Floating Rate Notes Due December 2051 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: -- $48,000,000 Class C Secured Deferrable Interest Floating Rate Notes Due December 2051 Prior Rating: A2 Current Rating: Ba1, on review for possible downgrade -- $38,400,000 Class D Secured Deferrable Interest Floating Rate Notes Due December 2051 Prior Rating: Baa3 Current Rating: Ba3, on review for possible downgrade -- $19,200,000 Class E Secured Deferrable Interest Floating Rate Notes Due December 2051 Prior Rating: Ba3 Current Rating: B3, 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. BARRINGTON II: Moody's Pares Baa2 Rating on Class D Notes to Ba3 ---------------------------------------------------------------- Moody's Investors Service placed these notes issued by Barrington II CDO Ltd. on review for possible downgrade: -- $189,000,000 Class A-2 Floating Rate Notes Due 2052 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $78,750,000 Class A-3 Floating Rate Notes Due 2052 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $43,750,000 Class B Floating Rate Notes Due 2052 Prior Rating: Aa2 Current Rating: Aa2, on review for possible downgrade -- $15,750,000 Class C Deferrable Floating Rate Notes Due 2052 Prior Rating: A2 Current Rating: A2, on review for possible downgrade In addition Moody's has downgraded and left on review for possible downgrade these notes: -- $12,250,000 Class D Deferrable Floating Rate Notes Due 2052 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. BEAR STEARNS: Investors to Vote to Oust Bear Stearns Directors -------------------------------------------------------------- Investors in Bear Stearns High-Grade Structured Credit Strategies Enhanced Fund, L.P., and Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage (Overseas), Ltd., have launched a campaign to replace Bear Stearns Cos. and affiliates as the Funds' managing parties, according to a press release by Reed Smith LLP. Reed Smith represents shareholders with more than 25% equity stake in the two Funds. The campaign, according to Reed Smith's news statement, aims to replace Bear Stearns with FTI Capital Advisers, LLC, to conduct an independent investigation into how the two funds, which once had equity value in excess of $650,000,000, were decimated and appear to have been rendered worthless. Bart Schwartz, Esq., former Chief of the Criminal Division of the United States Attorney's Office for the Southern District of New York, has also been nominated to serve alongside FTI in managing the overseas fund. Investors in the Enhanced Leverage Fund will try to oust the Bear Stearns-appointed directors at a November 7 meeting in Manhattan, New York, while the Overseas Fund investors will vote on Nov. 14, in London. "From the feedback we are getting, we believe we are close to having the necessary support to make it happen, but it is critical that every investor's vote be counted," Lance Gotthoffer, Esq., at Reed Smith, noted in the statement. However, efforts have been hampered by Bear Stearns' refusal to provide the investors with a complete list of investors, The Financial Times quoted a person close to the initiative. The group has also complained that Bear Stearns is not cooperating with their effort to obtain access to records to buttress potential legal claims against Bear Stearns, FINAlternatives Hedge Fund & Private Equity News added. In a letter addressed to the Investors dated November 2, the Bear Stearns-appointed Directors said that the board "no longer has authority" over the fund, and replacing the Bear Stearns representatives "would not affect the authority of the liquidators to conduct the winding-up of the fund," FINAlternatives reported. The Financial Times said that if the votes are successful, it would be the first time the Investors had managed to replace a bank as the administrator of funds it managed. Dow Jones Newswires added that getting approval could be difficult because a wide array of investors are pursuing different paths to try to reclaim some of their lost funds, and because Bear Stearns, under fund guidelines, is charged with coordinating the vote. Under the Funds' governance documents, the vote will be canceled if holders of more than 50% of each Fund's initial capital are not present within half an hour of the meeting's start time, Dow Jones further noted. Mr. Gotthoffer contended that, "[i]t is too early to speculate on what FTICA and Mr. Schwartz might find, but we are confident that they will work diligently to maximize recoveries for creditors and investors of the funds." About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than $100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). BEAR STEARNS: Judge Lifland Postpones Ruling on BofA's Request -------------------------------------------------------------- The Hon. Judge Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York has denied Bank of America Corp.'s request to deprive Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structure Credit Strategies Enhanced Fund, Ltd., of payments from the bank's affiliate, Bank of America Securities, LLC, Bloomberg News reports. Judge Lifland said at the November 1, 2007 hearing that he would postpone a decision on BANA's request to change an indenture on a collateralized debt obligation. He added that the change would prevent the Bear Stearns Funds from getting any payment from the CDO before all its notes, bonds and other debt is repaid in full, according to Bloomberg. BANA had asked Judge Lifland to rule that the permanent injunction that protects bankrupt companies wouldn't bar it from using its voting power over the CDO to change the indenture. "I'm too much in the dark to grant the relief without further information," Bloomberg quotes Judge Lifland as saying, citing the extent to which the change could affect cash flow to creditors and investors, as well as the extent to which the CDO is "locked up with subprime mortgages." Details about the indenture were not available in Court documents, Bloomberg says. Judge Lifland also stated during the hearing that he didn't want to rule on an issue of "governance" for the CDO, particularly because the issue of whether Bear Stearns can win U.S. protection is currently on appeal in the U.S. District Court for the Southern District of New York, Bloomberg relates. Bank of America lawyer Jantra Van Roy, Esq., at Zeichner Ellman & Krause, LLP, in New York, told Judge Lifland during the hearing that she couldn't guarantee that the changes the Bank had asked for wouldn't affect lawsuits against Bear Stearns related to the collapse of its hedge funds, Bloomberg adds. Judge Lifland has directed the Bank to "come back and explain more completely" what it is asking for, according to Bloomberg. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than $100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). BEAR STEARNS: Massachusetts Regulators Probe On Funds' Trading -------------------------------------------------------------- Securities regulators in the office of William F. Galvin, as state secretary of the commonwealth of Massachusetts, are investigating whether Bear Stearns Cos. traded mortgage-backed securities for its own account with two of its collapsed hedge funds without informing the funds' independent directors in advance, Jennifer Levitz of the Wall Street Journal reports, citing people familiar with the issue. The state believes that it has a standing on behalf of some residents who invested in the Funds. Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structure Credit Strategies Enhanced Fund, Ltd., filed liquidation proceedings in the Grand Court of Cayman Islands in July 2007. The Funds' collapse has cost about $1,600,000,000 loss to investors, the Journal says. According to the Journal, the Massachusetts investigation seems to be the first suggestion that potential conflicted trading at Bear Stearns is being scrutinized. Massachusetts regulators have found "a material number of principal transactions" between Bear Stearns Cos. and the hedge funds, the Journal further cites people familiar with the investigation. The Journal found that the Bear Stearns Funds' offering memorandum listed 12 types of arrangement that could lead to conflict, including handling brokerage business for the funds, allocating positions between the funds and other entities managed by Bear Stearns Cos., valuing the assets of partnerships, and lending to the funds. The Funds' memorandum note that federal securities law mandates that any investment adviser whose affiliates engage in principal trading with clients must obtain their consent in writing in advance, and Bear Stearns Asset Management, the Funds' investment manager, promised in the memorandum that it would obtain consent from the directors, the Journal says. The Funds each had the same five directors, three of whom were affiliated with Bear Stearns Cos. The memorandum identified Scott P. Lennon and Michelle Wilson-Clarke, both executives at Walkers SPV, Ltd., a fund administrator in the Cayman Islands, as the independent directors, the Journal notes. Howard Schiffman, a securities lawyer and former enforcement lawyer at the Securities and Exchange Commission, related to the Journal that advance disclosure of so-called principal trades is a "longstanding principle" for investment companies and that "a fund could be accused of breaching fiduciary duty if proper disclosure was not made." The Massachusetts regulators are also looking at why Bear Stearns research analysts upgraded subprime lender New Century Financial Corp., from "sell" to "neutral" on March 1, 2007, before the company filed for Chapter 11, the Journal relates. Russell Sherman, a Bear Stearns Cos. spokesperson, related to the Journal that the company is cooperating with all inquiries about the two funds but provided no comment on the investigation. The U.S. Attorney's office in Brooklyn and the U.S. Securities and Exchange Commission each are also examining the circumstances of the Funds' collapse. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than $100,000,000 each. (Bear Stearns Funds Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). BIOPURE CORP: Completes $14.9 Mil. Offering of Stock & Warrants --------------------------------------------------------------- Biopure Corporation closed an underwritten public offering of stock and warrants that raised net proceeds to Biopure of approximately $14.9 million assuming no exercise of the warrants. Biopure sold 19,377,500 new shares of its common stock and warrants to acquire an additional 19,377,500 shares, including 2,527,500 shares and 2,527,500 warrants granted to the underwriters to cover over-allotments. The price for one share and one warrant was $0.85 and the exercise price of each warrant is $1.0625. The warrants have a five-year term and are callable by Biopure after six months provided that the weighted average price of Biopure's common stock for ten consecutive days is over $1.59. Dawson James Securities Inc. acted as the managing underwriter for the public offering. Biopure intends to use the proceeds from this offering for general corporate and working capital purposes. Headquartered in Cambridge, Massachussetts, Biopure Corporation (NasdaqCM: BPUR) -- http://www.biopure.com/-- develops, manufactures and markets pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body's tissues. The company is developing Hemopure for a potential indication in cardiovascular ischemia, in addition to supporting the U.S. Navy's government-funded efforts to develop a potential out-of-hospital trauma indication. Biopure's veterinary product Oxyglobin(R) is indicated for the treatment of anemia in dogs. * * * As reported in the Troubled Company Reporter on Sept. 10, 2007, Ernst & Young, in Boston, Massachusetts, expressed substantial doubt about Biopure Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Oct. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and lack of sufficient funds to sustain its operations through the end of fiscal 2007. BISON PEAK: Moody's Junks Rating on $11.25 Million Swap Notes ------------------------------------------------------------- Moody's Investors Service downgraded and placed these notes issued by Portfolio Credit Default Swap (Bison Peak Mezzanine Swap) on review for possible downgrade: -- $11,250,000 Initial Tranche Notional Amount Credit Default Swap Prior Rating: B1 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 structured finance securities. BLOCK COMMUNICATIONS: S&P Holds All Ratings and Revises Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Sylvania, Ohio-based Block Communications Inc. to positive from stable. All ratings, including the 'B+' corporate credit rating, are affirmed. "The change in outlook reflects a significant improvement in the media and cable TV company's credit profile ahead of our expectations," said Standard & Poor's credit analyst Naveen Sarma. In particular, leverage, or adjusted debt to last-12-month EBITDA, dropped to 5.3x as of Sept. 30, 2007, from 6.5x in December 2006. This was driven in part by sizable cost savings achieved in contract settlements with the unions representing employees of the Post-Gazette and Blade newspapers in the first half of 2007. Annualized cost savings in the third quarter were somewhat better than the original target of $40 million. In addition, the cable TV segment, which is the company's main source of cash flow, reported 14% revenue and 25% EBITDA growth from the year-earlier third quarter. The result reflected healthy double-digit growth in cable modem and telephone subscribers, and a small growth in basic subscribers in contrast to the industry's declining trend. Block provides cable TV service to about 148,000 basic subscribers in Toledo and Sandusky, Ohio, owns the Pittsburgh Post-Gazette and Toledo Blade newspapers, and operates five TV stations in four markets. Total debt, adjusted for operating leases and unfunded pensions and other postemployment benefits, was about $423 million as of Sept. 30, 2007. The ratings on Block reflect limited geographic diversity from its small-scale, family-owned cable TV and media operations in economically soft markets; weak advertising growth and secular circulation erosion in the high fixed-cost newspaper publishing business; subpar profitability at both the newspaper and TV broadcasting businesses; and a leveraged capital structure. Mitigating factors include a good competitive position against satellite TV, expectations for continued strong revenue and cash flow growth from increased penetration of advanced cable services, and improved financial results at the newspaper division due to significant labor cost savings. BLOOMFIELD ESTATES: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Bloomfield Estates, L.L.C. 3099 Mandeville Canyon Road Los Angeles, CA 90049 Bankruptcy Case No.: 07-20197 Type of Business: The Debtors manage real estate. Chapter 11 Petition Date: November 5, 2007 Court: Central District Of California (Los Angeles) Judge: Samuel L. Bufford Debtor's Counsel: Craig M. Rankin, Esq. Levene, Neale, Bender, Rankin & Brill, L.L.P. 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Estimated Assets: $1 Million to $1 Million Estimated Debts: $1 Million to $1 Million Debtor's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Philip D. Dapeer, Esq. legal fees $275,000 699 Hampshire Boulevard, Suite 105 Westlake Village, CA 91361 S.P. Larner real property $60,000 18730 Oxnard Street, auctioneer Suite 208 Tarzana, CA 91356 Aon Insurance real property $25,000 707 Wilshire Boulevard, insurance Suite 6000 Los Angeles, CA 90017 Nigro, Karlin, Segal, accounting fees $10,000 Feldstein, L.L.C. Los Angeles D.W.P. utilities for $7,000 real property BNC MORTGAGE: Fitch Affirms Low-B Ratings on Two Cert. Classes -------------------------------------------------------------- Fitch Ratings took these rating actions on the BNC mortgage pass- through certificates. Affirmations total $871.8 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions: BNC 2007-1 -- $674 million class A affirmed at 'AAA' (BL: 33.46, LCR: 3.56); -- $44.9 million class M1 affirmed at 'AA+' (BL: 28.29, LCR: 3.01); -- $44.9 million class M2 affirmed at 'AA' (BL: 23.21, LCR: 2.47); -- $14.6 million class M3 affirmed at 'AA-' (BL: 21.51, LCR: 2.29); -- $17 million class M4 affirmed at 'A+' (BL: 19.51, LCR: 2.07); -- $16.6 million class M5 affirmed at 'A' (BL: 17.55, LCR: 1.87); -- $9.7 million class M6 affirmed at 'A-' (BL: 16.34, LCR: 1.74); -- $9.2 million class M7 affirmed at 'BBB+' (BL: 15.03, LCR: 1.60); -- $8.3 million class M8 affirmed at 'BBB' (BL: 13.83, LCR: 1.47); -- $9.2 million class M9 affirmed at 'BBB-' (BL: 12.59, LCR: 1.34); -- $12.2 million class B1 affirmed at 'BB+' (BL: 10.87, LCR: 1.16); -- $10.7 million class B2 affirmed at 'BB' (BL: 9.60, LCR: 1.02). Summary -- Originators: (100% BNC); -- 60+ day Delinquency: 7.8%; -- Realized Losses to date (% of Original Balance): 0.07%; -- Expected Remaining Losses (% of Current Balance): 9.40%; -- Cumulative Expected Losses (% of Original Balance): 8.60%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. -- 'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007); -- 'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12 ,2007). BRE PROPERTIES: S&P Affirms All Ratings with Stable Outlook ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed all existing ratings on BRE Properties Inc. The rating actions affect $1.5 billion in senior unsecured notes and $175 million in preferred stock. The outlook is stable. "The ratings acknowledge the company's solid operating performance, good quality and well-positioned core multifamily portfolio, and a moderate financial policy," said credit analyst Tom Taillon. "Development activity has steadily expanded, and although identified projects are well located and have attractive budgeted yields, the overall size and risks associated with new development are credit considerations. Additional limiting rating factors include adequate, albeit improving, fixed-charge coverage, and the company's West Coast geographic concentration." The stable outlook reflects S&P's expectation for a normalization of multifamily operating performance over the next few years with continued, albeit tempered, cash flow growth in the core portfolio. Recently completed development projects should supplement NOI and partly offset the negative effect that capitalized interest has on coverage measures. Ratings improvement would be driven by stronger and more stable coverage measures, while a sharper-than-expected slowdown in the rate of rental growth or sizeable missteps in the development pipeline could pressure the rating. BROTMAN MEDICAL: Gets Initial Nod to Access $19.8 Mil. Financing ---------------------------------------------------------------- (joel) Brotman Medical Center Inc. obtained authority from the United States Bankruptcy Court for the Central District of California to access, on an interim basis, up to $19,875,000 in postpetition financing and other extensions of credit from CapitalSource Finance LLC. The Debtor tells the Court that before the bankruptcy filing CapitalSource made certain loans, revolving credit and other financial accomodations available to the Debtor. As reported in the Troubled Company Reporter on Oct. 29, 2007, the DIP financing facility was designed to permit the hospital to fund its working capital needs during the chapter 11 case, including obligations to its employees, trade vendors, suppliers and service providers. The Debtor granted in favor of the DIP lender security interest and liens and superiority claims status pursuant to Section 364 of the Bankruptcy Code, as adequate protection. In addition, the DIP lender will be entitled to receive adequate protection payments equal to a rate of prime plus 5.5% per annum on the outstanding amount due under the credit facility. The Court will convene a hearing on Nov. 28, 2007, at 10:00 a.m., to consider final approval of the Debtor's request. Headquartered in Culver City, California, Brotman Medical Center Inc. -- http://www.brotmanmedicalcenter.com/-- provides range of inpatient and outpatient services, as well as rehabilitation, psychiatric care and chemical dependency. The company filed for Chapter 11 protection on Oct. 25, 2007 (Bankr. C.D. Calif. Case No. 07-19705). The Debtor have selected Kurtzman Carson Consultants LLC as its claims and noticing agent. The U.S. Trustee for Region 16 has not appointed creditors to serve on an Official Committee of Unsecured Creditors in this case. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. BUFFETS HOLDINGS: Sept. 19 Balance Sheet Upside-Down by $192 Mil. ----------------------------------------------------------------- Buffets Holdings Inc. reported Monday operating results for its twelve week, first quarter ended Sept. 19, 2007. At Sept. 19, 2007, the company's consolidated balance sheet showed $963.5 million in total assets and $1.156 billion in total liabilities, resulting in a $192.7 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 19, 2007, also showed strained liquidity with $118.2 million in total current assets available to pay $241.0 million in total current liabilities. Net loss for the first quarter of fiscal 2008 was $5.3 million, as compared to a net loss of $1.1 million for the first quarter of fiscal 2007. The increase in net loss was primarily attributable to an increase in interest expense of approximately $7.5 million, $1.6 million of merger integration costs related to the merger with Ryan's and higher restaurant costs as a percentage of sales. The increase in interest cost was primarily due to the significant increase in the company's long-term debt balances resulting from debt incurred in connection with the Ryan's merger on Nov. 1, 2006. Buffets Holdings reported a 76.0% increase in total sales for the first quarter ended Sept. 19, 2007, as sales increased to $376.5 million compared to $213.9 million for the comparable prior year period, primarily due to the merger with Ryan's Restaurant Group on Nov. 1, 2006. Average weekly sales for the first quarter of fiscal 2008 for the Buffets brand restaurants, which include the Old Country Buffet(R), Country Buffet(R), and HomeTown Buffet(R), increased approximately 0.7% to $54,627, compared to the comparable prior year period. Same-store sales for the first quarter of fiscal 2008 decreased by 0.2% for the Buffets brand restaurants as compared to the prior year. This decrease was primarily attributable to a 3.0% decline in guest traffic, partially offset by a 2.8% increase in average check. Average weekly sales for the first quarter of fiscal 2008 for the Ryan's brand restaurants, which include the Ryan's(R) and Fire Mountain(R) brands, decreased approximately 1.1% to $44,348. Same-store sales for the first quarter of fiscal 2008 decreased by 4.0% for the Ryan's brand units as compared to the prior year. This decrease was primarily attributable to a 6.2% decline in guest traffic, partially offset by a 2.2% increase in average check. Same-stores sales calculations reflect those restaurants that have been in operation for at least eighteen operating periods. Continued Focus on Key Initiatives The company's primary focus is on returning the Ryan's brand restaurants same store sales to positive territory and improving its operating metrics in the Buffets system. In the first quarter of fiscal 2008 Ryan's same store sales were down 4.0% however, there is still concern about the current operating environment, particularly gasoline prices and the pending adjustable rate mortgage resets that have been affecting and will continue to affect the company's core guest base. On the Buffets side, same store sales have remained relatively stable at down 0.2% in the current quarter. However, food cost pressures and hourly labor rate increases have continued to adversely impact the company's operating margins. The company continues to direct significant attention to its cost savings initiatives related to the Ryan's integration effort and, despite stiff headwinds facing the company in the form of higher commodity costs and labor rates, it has realized approximately $20.5 million in cumulative cost savings since its merger with Ryan's through the end of the first quarter. "While we still expect to capture the full $55.7 million in cost savings identified prior to the merger, we now believe it will take us up to six months longer than originally anticipated to fully realize them through our operating results," said R. Michael Andrews, Buffets' chief executive officer. Discontinued Operations In June 2007, the company made the decision to sell its Tahoe Joe's Famous Steakhouse(R) restaurants. The eleven restaurants in the Tahoe Joe's Famous Steakhouse(R) Division are being actively marketed and management expects a sale to occur within the next fiscal year. As a result, the company has revised the financial statements contained within its form 10-Q filing dated Sept. 19, 2007 to show certain account balances and activity related to the Tahoe Joe's restaurants as discontinued operations. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 19, 2007, are available for free at http://researcharchives.com/t/s?24ff About Buffets Holdings Headquartered in Eagan, Minnesota, Buffets Holdings Inc., is the holding company of Buffets Inc. -- http://www.buffet.com/-- which currently operates 635 restaurants in 39 states, comprised of 624 steak-buffet restaurants and eleven Tahoe Joe's Famous Steakhouse(R) restaurants, and franchises sixteen steak-buffet restaurants in six states. The restaurants are principally operated under the Old Country Buffet(R), HomeTown Buffet(R), Ryan's(R) and Fire Mountain(R) brands. Buffets employs approximately 38,000 team members and serves more than 200 million customers annually. BUFFETS HOLDINGS: S&P Cuts Corp. Credit Rating to CCC from CCC+ --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings, including the corporate credit rating, on Eagan, Minnesota-based Buffets Holdings Inc. to 'CCC' from 'CCC+'. The outlook is negative. "The rating action is based on our expectation that the company will breach the maximum leverage ratio covenant of its senior secured credit facility in the coming quarter," said Standard & Poor's credit analyst Charles Pinson-Rose. He added that Buffets has engaged Houlihan, Lokey, Howard & Zukin Capital to advise the company with respect to its capital structure. BUNGE LTD: S&P Rates $750 Million Preference Shares at BB --------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' rating to Bunge Ltd.'s $750 million of 5.125% cumulative mandatory convertible preference shares. At the same time, Standard & Poor's affirmed its 'BBB-' long-term corporate credit and other ratings on Bunge. The outlook is stable. Pro forma for the new issue, about $4.2 billion of debt and preference shares of the White Plains, New York-based company are rated. Proceeds from this issue will be used to repay debt and for general corporate purposes. "The new preference share issue will receive high equity content under our methodology because of its mandatory conversion feature," said Standard & Poor's credit analyst Jayne Ross. Each preference share automatically converts into 8.2190 to 9.6984 common shares. "The ratings on Bunge reflect the company's position as the largest player in global oilseed origination, trading, and processing, with broad geographic diversity," said Ms. Ross. "Good positions in U.S. milling, vertically integrated Latin American fertilizer operations, and complementary businesses in food processing provide Bunge with a fairly diverse product portfolio. These strengths are tempered by the company's aggressive financial policies and lack of consistent and satisfactory free operating cash flow." C-BASS CBO: Moody's Pares Low-B Ratings on $30.5 Mil. Class Notes ----------------------------------------------------------------- Moody's Investors Service placed these notes issued by C-BASS CBO XVIII Ltd. on review for possible downgrade: -- $346,000,000 Class A-1 First Priority Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $150,000,000 Class A-2 First Priority Senior Secured Fixed Rate Notes Due 2047 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: -- $46,500,000 Class B Second Priority Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Baa1, on review for possible downgrade -- $12,700,000 Class C Third Priority Secured Floating Rate Deferrable Interest Notes Due 2047 Prior Rating: A2 Current Rating: Ba2, on review for possible downgrade -- $17,800,000 Class D Fourth Priority Secured Floating Rate Deferrable Interest Notes Due 2047 Prior Rating: Baa2 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. CALVIN CASHAN: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------ Debtors: Calvin J. Cashan Elizabeth M. Cashan 205 East Central Avenue Moorestown, NJ 08057 Bankruptcy Case No.: 07-26356 Chapter 11 Petition Date: November 6, 2007 Court: District of New Jersey (Camden) Debtors' Counsel: Jerrold S. Kulback, Esq. Archer & Greiner One Centennial Square Haddonfield, NJ 08033 Tel: (856) 795-2121 Fax: (856) 795-0574 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' list of its 11 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Nicholas Cashan, III $1,400,000 921 Central Avenue Hammonton, NJ 408037 American Express $101,049 P.O. Box 1270 Newark, NJ 07101-1270 Joanne Hudson Associates, Ltd. $70,000 2400 Market Street, Suite 302 Philadelphia, PA 19103 Depenbrock Landscapers, Inc. $55,785 Blank Rome, LLP $35,313 Avalon Audio Video $35,000 Citi Card $14,588 Bank of America $13,244 Pennsylvania Hospital $8,798 Tabernacle Granite & Marble, Inc. $8,107 Capital One $4,400 CAMBER 6: Moody's Cuts Ratings on Two Note Classes to Low-B ----------------------------------------------------------- Moody's Investors Service placed these notes issued by CAMBER 6 plc on review for possible downgrade: -- $75,100,000 Class B Senior Floating Rate Notes Due 2043 Prior Rating: Aaa Current Rating: Aaa, on review for possible downgrade -- $105,000,000 Class C Senior Floating Rate Notes Due 2043 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: -- $18,000,000 Class D Floating Rate Deferrable Notes Due 2043 Prior Rating: A2 Current Rating: Baa2, on review for possible downgrade -- $30,000,000 Class E Floating Rate Deferrable Notes Due 2043 Prior Rating: Baa2 Current Rating: Ba2, on review for possible downgrade -- $7,500,000 Class F Floating Rate Deferrable Notes Due 2043 Prior Rating: Ba1 Current Rating: B2, 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. CARIBOU PEAK: Moody's Junks Rating on $11.25 Mil. Swap Notes ------------------------------------------------------------ Moody's Investors Service downgraded and placed these notes issued by Portfolio Credit Default Swap (Caribou Peak Mezzanine Swap) on review for possible downgrade: -- $11,250,000 Initial Tranche Notional Amount Credit Default Swap Prior Rating: Ba3 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 structured finance securities. CARRINGTON MORTGAGE: Fitch Cuts Ratings on Four Classes to Low-B ---------------------------------------------------------------- Fitch Ratings took these rating actions on the Carrington Mortgage Loan Trust mortgage pass-through certificates. Affirmations total $543.7 million and downgrades total $198.9 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2007-RFC1: -- $549.7 million class A-1 through A-4 affirmed at 'AAA' (BL: 38.53, LCR: 2.12); -- $49.4 million class M-1 downgraded to 'AA-' from 'AA+' (BL: 34.51, LCR: 1.90); -- $41 million class M-2 downgraded to 'A+' from 'AA+' (BL: 29.19, LCR: 1.61); -- $15.7 million class M-3 downgraded to 'A-' from 'AA' (BL: 27.13, LCR: 1.49); -- $22.7 million class M-4 downgraded to 'BBB+' from 'AA-' (BL: 24.13, LCR: 1.33); -- $13.1 million class M-5 downgraded to 'BBB' from 'A+' (BL: 22.38, LCR: 1.23); -- $11.8 million class M-6 downgraded to 'BBB-' from 'A' (BL: 20.73, LCR: 1.14); -- $16.1 million class M-7 downgraded to 'BB' from 'A-' (BL: 18.35, LCR: 1.01); -- $6.9 million class M-8 downgraded to 'BB' from 'BBB+' (BL: 17.26, LCR: 0.95); -- $11.3 million class M-9 downgraded to 'B' from 'BBB' (BL: 15.43, LCR: 0.85); -- $10.4 million class M-10 downgraded to 'B' from 'BBB-' (BL: 14.11, LCR: 0.78). Deal Summary -- Originators: Various; -- 60+ day Delinquency: 15.28%; -- Realized Losses to date (% of Original Balance): 0.04%; -- Expected Remaining Losses (% of Current Balance): 18.15%; -- Cumulative Expected Losses (% of Original Balance): 16.14%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. -- 'Downgrade Criteria for Recent Vintage U.S. Subprime RMBS' (Aug. 8, 2007); -- 'U.S. Subprime RMBS/HEL Upgrade/Downgrade Criteria' (June 12 ,2007). CARROLL COUNTY: Diminishing Losses Cue S&P to Revise Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Carroll County, Maryland's $21.42 million series 1999A and 1999B bonds, issued for EMA Obligated Group (Fairhaven and Copper Ridge), to positive from stable, reflecting diminishing operating losses, growing liquidity, and successful absorption of new units. Standard & Poor's also affirmed its 'BB' underlying rating on the series 1999A and B bonds. "With management now stable and all facilities fully occupied, EMA is poised to continue its financial improvement over the next one to two years, which could result in an upgrade," said Standard & Poor's credit analyst Liz Sweeney. Key credit factors include EMA's rising liquidity, with 129 days' cash on hand systemwide at Sept. 30, 2007, compared with 105 days' cash at Dec. 31, 2005; strengthening of the senior management team following turnover at the senior levels during a period of poor performance, including a rate covenant violation in fiscal 2003, that ultimately resulted in the rating falling to the current level from 'A-'; solid occupancy at all facilities exceeding 90%, with Fairhaven recently completing the successful absorption of 100 new independent living units; modestly diminished operating losses systemwide, with a negative 6.9% operating margin for the nine months ended Sept. 30, 2007, compared with negative 8.0%-12.0% operating losses in 2004-2006; and a competitive marketplace. Standard & Poor's will evaluate a possible financing at William Hill Manor in 2008 for a modest expansion and refunding when plans are more complete, in the context of the project risk, the scale of the project and related debt, and the system's overall performance at that time. The revised rating outlook affects $30 million of rated debt. CENTER FOR EDUCATION: Case Summary & 16 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Center for Education, Networking, Training, and Empowerment Resources, Inc. dba C.E.N.T.E.R., Inc. dba CENTER, Inc. P.O. Box 1788 Waycross, GA 31502 Bankruptcy Case No.: 07-50917 Type of Business: The Debtor filed for Chapter 11 protection on Aug. 31, 2007 (Bankr. S.D. Ga. Case No. 07-50705). Chapter 11 Petition Date: November 6, 2007 Court: Southern District of Georgia (Waycross) Judge: John S. Dalis Debtor's Counsel: C. James McCallar, Jr., Esq. McCallar Law Firm P.O. Box 9026 Savannah, GA 31412 Tel: (912) 234-1215 Fax: (912) 236-7549 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's list of its 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Branch Banking & Trust Company Macedonia Baptist $314,616 500 Albany Avenue Church Loan Waycross, GA 31501 Bailey Street Charter $145,467 School Loan Waycross Satilla Missionary $147,000 Baptist Association 2913 Albany Avenue Waycross, GA 31501 John N. Fluker Loan $90,500 611 Preston Street Waycross, GA 31501 Petterson Bank 1994 Mercedes 420 $16,500 2 Chevy Vans $34,000 Line of Credit $30,000 Fer-rell & Kecia Malone $55,000 Internal Revenue Service Taxes $54,000 Joey Hiers $40,000 Brumbloe & Associates $29,000 Willie J. Brown Loan $25,000 Eala Greene Loan $18,000 Denmark & Brown Financial Work $15,000 GMBC Convention & Pastors Bill $12,250 Marica Hines Loan $10,000 Carlton Fluker $9,500 Ruth McCoy Loan $8,000 Georgia Department of Labor Taxes $6,788 CHERRY CREEK: Moody's Junks Rating on $7 Million Class C Notes -------------------------------------------------------------- Moody's Investors Service placed these notes issued by Cherry Creek CDO II Ltd on review for possible downgrade. -- $329,000,000 Class A1S Variable Funding Senior Secured 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: -- $57,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aaa Current Rating: A3, on review for possible downgrade -- $47,000,000 Class A2 Senior Secured Floating Rate Notes Due 2047 Prior Rating: Aa2 Current Rating: Baa3, on review for possible downgrade -- $20,500,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: A2 Current Rating: Ba3, on review for possible downgrade -- $22,000,000 Class B Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 Prior Rating: Baa2 Current Rating: B3, on review for possible downgrade In addition Moody's announced that it has downgraded these notes: -- $7,000,000 Class C Mezzanine Secured Deferrable Interest 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 asset- backed secruities. CHRYSLER LLC: Lenders Selling $4 Billion Loans at a Discount ------------------------------------------------------------ Aiming to lessen $171 billion leveraged loan backlog, JPMorgan Chase and Co., Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns & Co. are planning to sell Chrysler LLC's $4 billion loans at about 97.5 cents on the dollar this week, Pierre Paulden and Bryan Keogh of Bloomberg News reports citing unnamed sources. The banks, sources say, are eager to dispose the $10 billion loans that they were not able to sell in July and August after Cerberus Capital Management acquired Chrysler from former owner DaimlerChrysler AG. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * As reported in the Troubled Company Reporter on Oct. 31, 2007, Standard & Poor's Ratings Services said its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC remain on CreditWatch with positive implications, following the United Auto Workers' narrow approval of the new Chrysler-UAW labor contract. The ratings were placed on CreditWatch on Sept. 26, 2007, based on S&P's belief that Chrysler would reach a deal similar to the one General Motors Corp. reached with the UAW on that date. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the $5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the $5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's $2 billion senior secured, second lien term loan in connection with the closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CINRAM INT'L: S&P Places Corp. Credit & Bank Loan Ratings at BB- ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit and bank loan ratings on Toronto-based prerecorded multimedia manufacturer Cinram International Inc., a wholly