T R O U B L E D C O M P A N Y R E P O R T E R Friday, November 23, 2007, Vol. 11, No. 278 Headlines AEI: $685 Million PSEG Deal Cues Fitch to Affirm 'BB' Ratings AFFILIATED COMPUTER: Replacement Directors Join Board AMERICAN HOME: Court Approves Amended Terms of AHM Sale Deal AMERICAN HOME: Modified Non-Insider Employee Retention Plan OK'd AMERICAN HOME: Sec. 341(a) Creditors' Meeting to Resume Nov. 30 AMERICAN HOME: Settles Loan Servicing Disputes w/ Credit Suisse ATHLETES WORLD: Forzani Group Discloses Acquisition Plans BADRAN STORES: Case Summary & 20 Largest Unsecured Creditors BANYAN CORP: Sept. 30 Balance Sheet Upside-Down by $420,448 BASIS YIELD: Joint Provisional Liquidators Seek Summary Judgment BIG A DRUG: Case Summary & 19 Largest Unsecured Creditors BOMBAY COMPANY: Court OKs Sale of Corporate Headquarters for $16MM BOSTON SCIENTIFIC: Amends Pact to Settle Product Claims BOYD GAMING: Fitch Affirms 'BB-' Issuer Default Rating BROTMAN MEDICAL: Section 341(a) Meeting Scheduled for January 8 CABLE & CO: Continues Efforts to Meet AMEX Requirements CANADA 3000: PwC Holds $758,000 Ready for Distribution CARDTREND INTERNATIONAL: Posts $1,049,738 Net Loss in Third Qtr. CATHOLIC CHURCH: Davenport Unable to File Plan by Nov. 16 Deadline CATHOLIC CHURCH: Dismissal Order Issued in San Diego's Ch. 11 Case CHAMPION PARTS: Taps McDermott Will as Special Counsel CHAMPION PARTS: U.S. Trustee Unable to Appoint Creditors Committee CITIGROUP COMMERCIAL: Fitch Holds 'BB+' Ratings on Two Classes CITIGROUP COMMERCIAL: Fitch Holds Low-B Ratings on Six Classes COINMACH SERVICE: S&P Retains Negative Watch on Completed Deal CONCHITA SUPERMARKET: Case Summary & 5 Largest Unsecured Creditors CONSTAR INT'L: Moody's Revises Outlook to Negative from Stable DELTA FUNDING: Fitch Cuts Rating on Class B Trust to B from BB- DONALD COON: Case Summary & 16 Largest Unsecured Creditors DUNMORE HOMES: Gets Interim Nod for Pachulski Stang as Counsel DUNMORE HOMES: Has Until Dec. 20 to File Schedules & Statements ENVIRONMENTAL TECTONICS: Restatement Cues Default on PNC Bank Pact EXIDE TECHNOLOGIES: Improved Financials Cue S&P to Lift Rating FIELDSTONE MORTGAGE: Fitch Cuts Rating on $7.5MM Trust to BB FOOT LOCKER: Posts $33 Mil. Net Loss in Quarter ended Sept. 30 FORD MOTOR: Al Ver to Retire as ACH CEO, COO and Vice President FORD MOTOR: Russian Plant Workers Resume Strike GARY KIMBERLIN: Case Summary & 20 Largest Unsecured Creditors GENERAL GROWTH: Fitch Affirms 'BB' Issuer Default Rating GENERAL MOTORS: UAW Members Wary on GM's Exposure to ResCap Woes GEORGE PHILLIPS: Case Summary & Two Largest Unsecured Creditors GHI AUTOMOTIVE: Case Summary & 18 Largest Unsecured Creditors HARBORVIEW MORTGAGE: Fitch Holds 'BB' Rating on Class B-11 Loan HOMETOWN COMMERCIAL: Fitch Holds 'B-' Rating on $559,000 Certs. IKON OFFICE: $500MM Stock Repurchase Cues Moody's Rating Review IKON OFFICE: $500 Mil. Stock Purchase Cues S&P's Negative Watch INDYMAC ABS: Fitch Holds Junk Ratings on Three Cert. Classes INNOVA ROBOTICS: Sept. 30 Balance Sheet Upside-Down by $4.06 Mil. INROB TECH: Sept. 30 Balance Sheet Upside-Down by $896,291 INTERACT HOLDINGS: Sept. 30 Balance Sheet Upside-Down by $2.5 Mil. JACK TAYLOR: Voluntary Chapter 11 Case Summary JUDY ROSS: Case Summary & Eight Largest Unsecured Creditors JULIA JACKSON: Case Summary & Nine Largest Unsecured Creditors LARRY MORINIA: Case Summary & Eight Largest Unsecured Creditors LB-UBS COMMERCIAL: Stable Performance Cues Fitch to Hold Ratings LEVITT AND SONS: Can Hire Kurtzman Carson as Claims Agent LEVITT AND SONS: Court Okays Berger Singerman as Bankr. Counsel LEVITT AND SONS: Wants to Abandon Bank Collateral and Properties LEVITZ FURNITURE: U.S. Trustee Balks at Jones Day Retention LEVITZ FURNITURE: U.S. Trustee Forms Seven-Member Creditors Panel LEVITZ FURNITURE: Wants to Hire FTI Consulting as Crisis Manager LIFECARE HOLDINGS: Posts $13MM Net Loss in Qtr. ended Sept. 30 LONG BEACH: Fitch Downgrades Ratings on $695.4 Million Certs. LONG BEACH: Fitch Junks Ratings on Two Certificate Classes MAAX HOLDINGS: Adopts Management Retention Plan MARATHON CORP: Case Summary & Six Largest Unsecured Creditors MARCELLA MCCARTHY: Case Summary & 11 Largest Unsecured Creditors MBS-LODGE: Case Summary & 20 Largest Unsecured Creditors MCCLATCHY CO: Low Revenue Cues S&P to Cut Rating to BB from BB+ MORGAN STANLEY: Limited Pay Down Cues Fitch to Affirm Ratings MOVIE GALLERY: Judge Tice Approves Store Closing Sales Procedures NEPHROS INC: Appoints James S. Scibetta as Director NEUROBIOLOGICAL TECH: Regains Nasdaq Listing Compliance NEW CENTURY: Unlikely to File September 30 Quarterly Report NY RACING: Amended Ch. 11 Plan to Pay Unsecured Creditors in Full NY RACING: Plainfield's Motion to Terminate Excl. Periods Denied OLEN CRAWFORD: Case Summary & Six Largest Unsecured Creditors OSCAR ROJAS: Case Summary & Seven Largest Unsecured Creditors PATHEON INC: Wesley Wheeler Appointed as Chief Executive Officer PATIENT PORTAL: Posts $675,992 Net Loss in 3rd Qtr. Ended Sept. 30 PETRO ACQUISITIONS: Files for Chapter 11 in Ohio PETRO ACQUISITIONS: Voluntary Chapter 11 Case Summary POPE & TALBOT: Delays Filing of September 30 Form 10-Q POPE & TALBOT: CCAA Proceedings Transferred to British Columbia POPULAR ABS: Fitch Affirms 'BB-' Rating on $2.2 Million Certs. PRUDENTIAL'S ROCK: Fitch Affirms 'B-' Rating on $4.5MM Certs. QUEBECOR WORLD: Market Status Cues Refinancing Plan Withdrawal RELIANT ENERGY: To Pay $10 Million to Equistar Under Agreement RELIANT PHARMA: Agrees to Sell Assets to GSK for $1.65 Bil. Cash RESIDENTIAL ASSET: Fitch Cuts Ratings on $13 Mil. Certificates RESIDENTIAL ASSET: Fitch Holds 'BB+' Ratings on Two Classes RESIDENTIAL ASSET: Fitch Lowers Ratings on Two Classes to BB RESIDENTIAL CAPITAL: Mulls Merger with U.K. Lender Northern Rock RICHARD ZUCARO: Case Summary & 19 Largest Unsecured Creditors ROBERTO MARTINS: Case Summary & 20 Largest Unsecured Creditors SAKS INC: Earns $21.6 Million in Third Quarter Ended Nov. 3 SAKS INC: Settles IDC Lawsuit on Improper Chargebacks SALANDER-O'REILLY: Gets Interim Nod for Triax as Contractor SCENIC HOLLOW: Case Summary & 10 Largest Unsecured Creditors SCOTTS MIRACLE: Moody's Withdraws Ratings for Business Reasons ST ALBANS: Case Summary & 12 Largest Unsecured Creditors TARRAGON CORP: Must File June & Sept. Form 10-Q's by December 31 THINKPATH INC: Sept. 30 Balance Sheet Up-Side-Down by $2.3 Mil. TRICADIA CDO: S&P Places 'BB' Rating Under Negative CreditWatch UNITED RENTALS: Files Lawsuit Against Cerberus Capital VALLEY HEALTH: Airs Cost-Cutting Plans; Intends to Cut Jobs by 2% VIRGIN MOBILE: S&P Assigns 'B-' Corporate Credit Rating WASTE TO CHARITY: Voluntary Chapter 11 Case Summary WASHINGTON MUTUAL: Moody's Downgrades Ratings on 34 Tranches WATERFORD EQUITIES: Connecticut Wants Chapter 11 Trustee Appointed WENTWORTH ENERGY: Posts $2 Million Net Loss in Third Quarter WESTLAKE DEVELOPMENT.: Voluntary Chapter 11 Case Summary WHITING PETROLEUM: Registers Initial Public Offer of Units WHITNEY SMITH: Case Summary & Largest Unsecured Creditor WHOLE FOODS: Board Increases January 22 Dividend by 11% WHOLE FOODS: Earns $34 Million in Quarter ended September 30 * Continued Credit Deterioration Leads Fitch to Review CDO's * Fitch Downgrades Ratings on $29.8 Bil. of Structured Finance CDO * Fitch Says US CMBS Deliquencies Fall to 0.28% in October 2007 * Moody's Takes Rating Actions on Various Classes * S&P Lowers Ratings on 136 Tranches from 28 U.S. Hybrid CDO * BOOK REVIEW: Building American Cities: The Urban Real Estate Game ********* AEI: $685 Million PSEG Deal Cues Fitch to Affirm 'BB' Ratings ------------------------------------------------------------- Fitch Ratings has affirmed AEI's (formerly Ashmore Energy International) ratings as: -- Issuer Default Rating at 'BB'; -- $1 billion term loan 'BB'; -- $500 million revolving credit facility 'BB'. The rating affirmation follows the announcement of AEI's agreement to acquire a 50% indirect interest in Chilquinta Energia S.A. and a 37.9% indirect interest in Luz del Sur S.A. and related companies from Public Service Enterprise Group for $685 million as well as various other recently completed and pending acquisitions and investments. The Rating Outlook is Stable. The affirmation incorporates the leveraging impact the acquisition of Chilquinta and Luz del Sur and the other investments will have on AEI. These transactions are expected to be funded with a combination of balance sheet cash, debt and equity which will increase leverage both on a consolidated, and parent-only basis. Additional debt funded transactions or the absence of expected equity funding may pressure credit quality over the medium term. Other recently completed acquisitions include acquisitions of Calidda, Del Sur as well as the purchase of incremental ownership interests in existing investments including San Felipe (formerly Smith Enron Cogeneration), Puerto Quetzal Power, and Corinto. The combination of these transactions is expected to increase proforma (LTM June 30, 2007) total debt to EBITDA to approximately 3.5 times from 3x and net debt to EBITDA to 2.6x from 1.6x assuming an equity offering of $330 million. Consolidated debt and EBITDA will increase to $4.8 billion and $1.4 billion, respectively, on a proforma (LTM June 30, 2007) basis following the closing of these transactions with $2.8 billion of the debt at the project level. Holding company debt (including the PIK sub- debt) is expected to increase to approximately $2 billion from $1.3 billion. Cash to AEI from its subsidiaries was approximately $430 million in 2006 and was approximately $550 million (inclusive of the sale proceeds of BLM) through the end of 3Q07. Parent-only leverage (including PIK sub-debt) is expected to increase to 3.6x from 2.7x in the lower end of the rating category. Parent-level free cash flow is sufficient to service debt. Parent company debt service is expected to be approximately $125 million. Fitch expects that the company will continue to maintain sufficient cash on the balance sheet to provide adequate liquidity in the business. Strategically, these investments are positive as they further geographically diversify AEI. In particular, Chilquinta and Luz del Sur represent a significant presence in their respective countries with long-term concession contracts, low- to moderately- low leverage and ample liquidity. This purchase marks AEI's entry into Chile and strengthening of their presence in Peru following the acquisition of Calidda, and further supports the company's strategy of diversifying into stable countries with reasonable regulatory frameworks. Chilquinta is one of the largest power distribution companies in Chile serving over 541,000 customers in region V including the city of Valparaiso. Luz del Sur is the largest power distribution company, by sales, in Peru serving over 800,000 customers in the area of southern Lima. Luz del Sur is a solid asset with low leverage and stable cash flow. The ratings also reflect AEI's portfolio of energy companies focused in five lines of business including: power distribution, power generation, natural gas transportation and services, natural gas distribution, and retail fuel. AEI's assets consist of 34 energy companies in which AEI has direct or indirect ownership interest. All of the assets are operating and generally performing well. AEI's operating assets have a relatively stable base of revenues and cash flows as more than 90% of its revenues are either from contracted Power Purchase Agreements or from regulated energy businesses. Contract and regulated revenues and cash flows tend to be more stable and have lower business risk. Contracted revenues from long-term PPAs are primarily with government-owned off-takers. In addition, AEI has an experienced operating management team. Cash flows are geographically concentrated in Brazil (rated 'BB+' by Fitch) and more generally in Latin America. From a portfolio standpoint, as of fiscal 2006, 90% of consolidated cash flows can be attributed to companies located in Latin America and 73% of consolidated cash flows are derived from Brazilian assets. Cash flow is concentrated in non-investment-grade countries and is generally rated in the 'BB+/BB-' range. Additionally, AEI's cash flow is concentrated in four key assets: Elektro (Brazil), Cuiaba (Brazil), Promigas (Colombia), and Trakya (Turkey). Forty percent of 2006 EBITDA is attributed to power distribution, 19% to power generation, 30% to natural gas transportation and services, 4% to natural gas distribution, and 7% to retail fuel. The largest cash flow contributor is expected to be Brazilian power distribution company, Elektro, which at the end of fiscal 2006 represented approximately 37% of consolidated proforma EBITDA and approximately 66% of AEI's dividend cash flow. Elektro is a very solid, well-managed, moderately low risk electric distribution company serving almost 2 million customers in the State of Sao Paulo. Elektro's credit metrics are strong with low leverage of total debt to EBITDA of 0.9 times for fiscal year-end 2006. AEI owns and operates a portfolio of energy infrastructure assets in power generation, power distribution, natural gas transportation and services, natural gas distribution and retail fuel. AEI's portfolio, directly or indirectly, consists of 34 companies in 19 countries, most of which are located in Latin America. The company's largest asset is Brazilian electric distribution company, Elektro, which represents approximately 37% of consolidated proforma EBITDA, and 66% of fiscal 2006 consolidated cash flow to parent company AEI. AFFILIATED COMPUTER: Replacement Directors Join Board ----------------------------------------------------- The independent directors of Affiliated Computer Services Inc.'s board of directors have completed their review of the replacement directors proposed by Darwin Deason, chairman of the board. No shareholders suggested any alternative nominees to those nominated by Mr. Deason. "We have determined that we have no reason to conclude that the nominees are not independent of Mr. Deason and the company's management," Dennis McCuistion said. Effective Nov. 21, 2007, Messrs. Robert B. Holland, III, J. Livingston Kosberg, Dennis McCuistion, Joseph P. O'Neill and Frank A. Rossi resigned from the company's board. The remaining directors have appointed Frank Varasano, Ted B. Miller, Jr., Richard W. Spears, and Kurt R. Krauss to fill the resulting vacancies. Mr. John H. Rexford also resigned from the company's board effective Nov. 21, 2007, leaving the board to consist of four independent directors and two management directors. Neither Mr. Deason nor any member of the company's management or board has any prior relationship with any of the newly elected independent directors. Frank Varasano Mr. Varasano, 61, served as executive vice president of Oracle Corporation from 1999 to 2001, where he was responsible for marketing, sales and consulting to Oracle's 400 largest product producing clients and was a member of the executive committee. Prior to that, Mr. Varasano held several senior management positions during his 26-year tenure at Booz Allen Hamilton. As a senior vice president, he led Booz Allen Hamilton's engineering and manufacturing practice, New York office and United States regional profit center. He also served on the firm's board of directors and executive committee. From 2005 to 2006, Mr. Varasano served as a director of Loudeye Corporation, serving on the compensation committee and the special committee that led the analysis and review of the sale of Loudeye to Nokia Corp. Mr. Varasano holds a Masters in Business Administration from Harvard Business School and a Bachelor of Science Degree from the United States Naval Academy. He also served as an officer aboard the USS Patrick Henry, a nuclear submarine. Ted B. Miller, Jr. From 1996 to 2001, Mr. Miller, 56, was the chief executive officer of Crown Castle International Corp., a wireless communications company he founded in 1995 which grew from start up to an $11.1 billion market capitalization. He was chairman of the Crown Castle board of directors from 1999 to 2002. Prior to founding Crown Castle, Mr. Miller was involved in the commercial real estate development, management and brokerage business and various investments including the media business as an original licensee of Blockbuster Video. Mr. Miller is currently managing director of Imperium International LLC and president of 4M Investments LLC, both international private investment companies. He is currently the chairman and majority shareholder of M7 Aerospace LP, an internationally diversified aerospace service, manufacturing and technology company. He is also vice chairman and majority shareholder of Intercomp Technologies LLC, a payroll outsourcing company with operations in Europe. Mr. Miller received a Juris Doctor from Louisiana State University and a Bachelor of Business Administration from the University of Texas. Richard W. Spears From 1980 to 1992, Mr. Spears, 71, was senior vice president, law and human resources, of Ashland Oil Inc., then a Fortune 100 company. From 1992 to 2003, he was a co-owner and director of Kentucky Bank and Trust Co. From 1992 to 1994, Mr. Spears served as of counsel to Greenebaum, Doll & McDonald PLLC, a corporate law firm with offices in Kentucky, Ohio, Tennessee and the District of Columbia. Currently, Mr. Spears is President and a director of Ashmark, Inc., a private retail venture which he co-founded. Mr. Spears received a Bachelor of Laws from the University of Kentucky College of Law and a Bachelor of Arts in Economics from Georgetown College. Kurt R. Krauss From 1978 to 1992, Mr. Krauss, 58, was a partner with Booz Allen Hamilton. He also served on the firm's board of directors and executive committee. From 1992 to 1997, Mr. Krauss was managing partner of the Mead Group, a management consulting firm which he founded with offices in Greenwich, Connecticut, and London, England. From 1997 to 2000, he served as chief financial officer of Burson- Marsteller, a public relations and public affairs firm. Currently, Mr. Krauss is the managing member of Sachem Investments LLC, an investment company he founded in 2001. Mr. Krauss currently serves on the board of directors of Prescient Medical Inc., for which he is the audit committee chairman, and has served on the boards of directors of Zila, Inc., Loudeye Corporation and several other not-for-profit organizations. Mr. Krauss received a Master of Science in Industrial Administration from Carnegie-Mellon University and a Bachelor of Arts in Mathematics from Heidelberg College. About Affiliated Computer Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ -- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter on Nov 6, 2007, Standard & Poor's Ratings Services kept its 'BB' corporate credit and senior secured ratings on Dallas-based Affiliated Computer Services Inc. on CreditWatch with negative implications, where they were placed on March 20, 2007. AMERICAN HOME: Court Approves Amended Terms of AHM Sale Deal ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware has approved the amended terms of a purchase agreement between American Home Mortgage Investment Corp., its debtor-affiliates, and Wilbur Ross' AH Mortgage Acquisition Co. Inc. A copy of the Amended APA is available for free at: http://bankrupt.com/misc/AHM_2ndAmended_APA.pdf As reported in the Troubled Company Reporter on Nov. 13, 2007, the amendment was prompted by DB Structured Products Inc.'s intention to appeal before the U.S. District Court for the District of Delaware the order of the Bankruptcy Court approving the sale of the Debtors' loan servicing business to AHM Acquisition, free and clear of liens, claims and interests. The Debtors are expected to sell their loan servicing business to AHM Acquisition Co. Inc. for approximately $500,000,000, under a two-stage closing process. Included in the approved sale are certain of the Debtors' rights and obligations arising out of a master mortgage loan purchase and servicing agreement between the Debtors and DBSP. DB Structured Products asked the Bankruptcy Court to issue a limited stay of the sale order solely insofar as it would authorize the assignment of, and otherwise impair DBSP's rights under, the MLPSA, pending an expedited appeal that it intends to take to the District Court. Accordingly, the Debtors asked the Court to deny DBSP's motion given that they have recently agreed to a modification of the purchase agreement as it relates to the sale and transfer of DBSP servicing rights. Under the amended purchase agreement, DBSP's servicing rights are placed on a separate schedule, "Disputed Servicing Agreements." Pending a decision on DBSP's appeal, the mortgage loans under the MLPSA will continue to be serviced by the Debtors through the later of the final closing and Sept. 30, 2008, and the portion of the total purchase price under the purchase agreement relating to the unpaid principal balance of the loans serviced under the MLPSA will be escrowed, subject to the final resolution of the appeal. On Nov. 6, 2007, DBSP filed with the Court a notice stating that it is withdrawing the stay motion. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Issue No. 16, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Modified Non-Insider Employee Retention Plan OK'd ---------------------------------------------------------------- At American Home Mortgage Investment Corp. and its debtor- affiliates' behest, the U.S. Bankruptcy Court for the District of Delaware authorized, but not required, the Debtors to modify their non-insider employee retention plan to: -- deem the assignments of the transferring employees complete; -- pay the employees' deferred payments and final payments upon the initial closing of sale of the Debtors' loan servicing business; and -- return the employees' salaries to the levels in existence prior to the implementation of the Plan. On October 30, 2007, the Court approved the sale of the Debtors' servicing business to AH Mortgage Acquisition Co. Inc. Under the terms of the Asset Purchase Agreement, the Sale will close in two steps -- the Initial Close, and the Final Close. Between the Initial Close and the Final Close, the Debtors will operate the Servicing Business. In August 2007, the Court approved a Non-Insider Employee Retention Plan proposed by the Debtors. However, at the time the Plan was approved, it was not contemplated that the sale of the Servicing Business would be structured as a two-step process with an Interim and Final Close. Rather, it was envisioned that at the time the Debtors received the proceeds from the sale of the Servicing Business, the employees either would be terminated or transferred to the purchaser and the employees would be paid their Deferred Payments and Final Payments. The Debtors initiated the Non-Insider Employee Retention Plan in order to successfully maintain the Debtors' Servicing Business throughout the sale process. With the sale approved, the Debtors sought to modify the Non- Insider Employee Retention Plan to deem the assignments of the Transferring Employees complete and to pay them their Deferred Payments and Final Payments upon the Initial Close. Upon payment of the Deferred Payments and Final Payment, the Non- Insider Employee Retention Plan with respect to the Transferring Employees will terminate and the salaries of the Transferring Employees and will return to the level that would have been in place for the Non-Insider Employee Retention Plan with whatever amendments that may be implemented by the Purchaser after the Initial Close. The Debtors proposed to pay the Employees their Deferred Payments and Final Payments and return their salaries to the level that would have been in place since their assignment would be complete upon the initial close. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Issue No. 16, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Sec. 341(a) Creditors' Meeting to Resume Nov. 30 --------------------------------------------------------------- Kelly Beaudin Stapleton, the U.S. Trustee for Region 3, will resume the meeting of American Home Mortgage Investment Corp. and its debtor-affiliates' creditors on Nov. 30, 2007, at 10:00 a.m. The meeting will be held at Room 2112, J. Caleb Boggs Federal Building, 844 King Street, in Wilmington, Delaware. The first meeting was initially convened last Sept. 18, 2007. This meeting of creditors, required under 11 U.S.C. Sec. 341(a) in all bankruptcy cases, offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. All creditors are invited, but not required, to attend. Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Issue No. 16, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Settles Loan Servicing Disputes w/ Credit Suisse --------------------------------------------------------------- American Home Mortgage Investment Corp. and its debtor- affiliates obtained the U.S. Bankruptcy Court for the District of Delaware's approval of a settlement agreement that resolves the adversary proceeding under which an affiliate of Credit Suisse First Boston asked the Court to compel the Debtors to remit all mortgage payments and turnover servicing rights with respect to loans CSFB purchased from the Debtors. Pursuant to a Master Repurchase Agreement, dated as of September 13, 2006, (i) Credit Suisse First Boston Mortgage Capital LLC purchased mortgage loans from American Home Mortgage Corp., American Home Mortgage Acceptance Inc., American Home Mortgage Servicing Inc., American Home Mortgage Investment Corp., and American Home Mortgage Holdings Inc., and (ii) the Debtors were obligated to repurchase the loans at a later, agreed-upon date. CSFB contracted AHM Servicing to service the loans. CSFB owned loans exceeding $46,000,000 in unpaid principal balance as of the Petition Date. As of November 15, 2007, the Debtors are holding in a segregated account (P&I account) $547,123 in principal and interest payments made by the mortgagors under the Mortgage Repurchase Agreement. The Debtors are also holding in a segregated account (T&I account) $36,938 in tax and insurance payments made by the Mortgagors to the Debtors relating to the Mortgage Loans, whether collected prior to or after the Petition Date. In August 2, 2007, amidst deteriorating financial condition of the Debtors, CSFB notified the Debtors that they have defaulted under the Mortgage Repurchase Agreement and, as a result, their obligations under the Agreement were immediately due and owing. In light of the Debtors' refusal to comply with the terms of the notice, CSFB commenced a suit in the Debtors' Chapter 11 cases, asking the Court to compel the Debtors to: -- remit to CSFB all amounts received on mortgage loans owned by CSFB and remit all those collections to an account designated by CSFB and segregate funds; -- immediately transfer servicing rights to the successor servicer appointed by CSFB; and -- immediately transfer to CSFB the mortgage files relating to any purchased mortgage loans in the Debtors' possession or control, as well as all records, files and all other documents held by each Debtor relating to the purchase mortgaged loans. The Debtors and certain CSFB affiliates are parties to other agreements: -- A Master Repurchase Agreement, dated as of December 2, 2003 (the Securities Repurchase Agreement), between Credit Suisse Securities (USA) LLC, formerly known as Credit Suisse First Boston LLC, and AHM Investment. As of the Petition Date, AHM Investment owed CS Securities about $1,600,000 on account of its repurchase obligations under the Agreement, and CS Securities is holding about $1,400,000 in cash collateral to secure AHM Investment's repurchase obligations. -- A Servicing Agreement dated as of October 31, 2005, among Wells Fargo Bank, N.A., as Master Servicer, Deutsche Bank National Trust Company, as Trustee, DLJ Mortgage Capital, Inc., as Seller, and AHM Servicing, as Servicer. -- An Amended and Restated Seller's Purchase, Warranties and Interim Servicing Agreement dated as of August 1, 2006, among DLJ Mortgage Capital, American Home Mortgage Corp. and AHM Servicing. AHM Corp. and AHM Servicing owed DLJ an unliquidated amount under the DLJ Purchase Agreement on account of "Early Payment Default" claims which could be in the amount of at least $2,800,000. -- A Master Securities Forward Transaction Agreement (the TBA Agreement), dated September 18, 2006, between CS Securities and AHM Corp. AHM Corp. owed CS Securities approximately $837,656 under the TBA Agreement as of the Petition Date. The Debtors and CSFB have reached Global Settlement Agreement to compromise and settle their respective rights and obligations under the Agreements and the Adversary Proceeding. The parties agree that: a. Transfer of Servicing. On a date that is designated by CS Mortgage, but no later than April 30, 2008, the Debtors will transfer to CS Mortgage or its designee, all right, title, and interest in the servicing of the mortgage loans under the Mortgage Repurchase Agreement. b. Servicing Transfer Cooperation. The Debtors, CS Mortgage and its designee, if any, will cooperate in connection with the transfer of the Servicing Rights and will use good-faith efforts to cause the transfer in an efficient non-disruptive manner. c. Mortgage Files. The Debtors will use good-faith efforts to ensure any and all instruments, agreements and other books, records, and reports and data with respect to Mortgage Loans are intact. d. Construction Loan Information. The Debtors will provide CS Mortgage all information and documents within their possession concerning the three Mortgage Loans that are construction loans. e. Sale of the Mortgage Loans. CS Mortgage, in its sole discretion, may market and offer the Mortgage Loans for sale at any time pursuant to one or more auctions for the sale or sales of each of the Mortgage Loans and the servicing rights related thereto. f. Sale Cooperation. The Debtors will cooperate with CS Mortgage or its designee in connection with CS Mortgage's efforts to sell the Mortgage Loans. g. Offering List. Not less than three business days prior to the commencement of the solicitation for participants in the Auction(s), and subject to an appropriate form of confidentiality agreement to be executed between the Debtors and CS Mortgage, CS Mortgage will provide the Debtors with a list of individuals or entities to which CS Mortgage will market the Mortgage Loans. CS Mortgage, in its sole discretion, will determine the qualified bidders. h. Participation. CS Mortgage will have the right to participate in the Auction(s). i. Excess Proceeds. In the event CS Mortgage sells the Mortgage Loans following the Auction(s) for an amount greater than the amounts advanced by CS Mortgage under the Mortgage Repurchase Agreement, CS Mortgage will turn over to the Debtors any proceeds received in excess of the Advance Amount as soon as practicable. j. Construction Loan Advances. The Advance Amount will include any advances made by CS Mortgage in connection with the Construction Loans, including, without limitation, advances made following the date of the Global Settlement Agreement. k. Deficiency Claim; Rights to Object. If CS Mortgage sells the Mortgage Loans for an amount that is in the aggregate less than the Advance Amount, CS Mortgage will have a general unsecured claim against the Debtors in an amount equal to the Advance Amount minus the proceeds received from the sale(s) of the Mortgage Loans provided, however, the Debtors and the Official Committee of Unsecured Creditors may object to the allowance of the Deficiency Claim only on these bases: (1) CS Mortgage's calculation of the Deficiency Claim was incorrect; or (2) the sale(s) of the Mortgage Loans was not done in a commercially reasonable manner under applicable state and federal law. l. Attorneys' Fees. CSFB will have an allowed general unsecured claim for reasonable attorney's fees and expenses. CS Mortgage will provide a summary fee statement of the fees and expenses which will be reviewed by the Debtors and the Official Committee of Unsecured Creditors may review for reasonableness. m. P&I Account; T&1 Account. The Debtors will transfer to CS Mortgage or its designee, by wire transfer, all amounts in the T&I Account less any advances appropriately made by the Debtors. On a monthly basis thereafter, the Debtors will transfer to CS Mortgage or its designee all amounts in the P&I Account. Basing from the payment histories for the Mortgage Loans submitted by the Debtors, CS Mortgage will advise the Debtors if any payments posted or that should have been posted to the system were not included in the amounts transferred by the Debtors from the T&I Account and the P&I Account. The Debtors will pay for any deficiencies. n. Set-off of Securities Cash Collateral. CS Securities will be authorized to set off the Securities Cash Collateral against its claims under the Securities Repurchase Agreement. o. Waiver of Deficiency Claim. After set-off of the Securities Cash Collateral, CS Securities will waive any deficiency claim under the Securities Repurchase Agreement. p. Turn Over of Securities. CS Securities will turn over to the Debtors any Securities in CS Securities' possession that were delivered to CS Securities by AHMC under the Securities Repurchase Agreement, consisting of: (i) 026931AH8 AMERICAN 2007-A 1M2 (ii) 026931AJ4 AMERICAN 2007-A 1M3 (iii) 02693lAQ8 AMERICAN 2007-A 2M6 (iv) 026931APO AMERICAN 2007-A 2M5 (v) 026933AG6 AMERICAN 2007-A 4M6 (vi) 026933AEI AMERICAN 2007-A 4M4 (vii) 026933AF8 AMERICAN 2007-A 4M5 q. Principal & Interest. AHM will be authorized to retain any principal and interest collected on account of the Securities after the Petition Date. r. The TBA Agreement. CS Securities will waive the TBA Claim. s. The EPD Claim. DLJ will waive the EPD Claim. t. Release by Debtors. CSFB releases the Debtors from any and all claims and actions arising from or relating to the Agreements. v. Limitation of Releases. The releases will not include or have any effect upon these claims and causes of action: * Claims of Credit Suisse Cayman Islands Branch or AHM Investment, AHM Servicing, AHM Corp., and AHM Acceptance arising from or relating to the the Second Amended Restated Credit Agreement entered into on August 10, 2006, by and between the Debtors and Bank of America, as Administrative Agent, and certain lenders, including Credit Suisse Cayman Islands; * The Debtors' right to assert that the sale(s) of the Mortgage Loans was not conducted in a commercially reasonable manner under applicable state and federal law; * The Debtors' right to assert a claim against CS Mortgage if, after the date the Debtors transfer servicing of the Construction Loans to CS Mortgage, CS Mortgage takes any action or fails to make an advance in accordance with the agreements governing the Construction Loans, which causes damage to the related mortgaged properties and for which a related borrower under a Construction Loan asserts a claim against a Debtor related to the action or failure to advance by CS Mortgage; and * Claims or causes of action of CSFB or the Debtors that arise from or are related to any other contract between CSFB and Debtors. w. The Adversary Proceeding. The Parties agree that the Adversary Proceeding will be dismissed with prejudice. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ATHLETES WORLD: Forzani Group Discloses Acquisition Plans --------------------------------------------------------- The Forzani Group Ltd. said Wednesday that it proposes to acquire 100% of bankrupt Athletes World Limited. The acquisition of Athletes World, Forzani said, will be financed through existing credit facilities. Forzani said that Athletes World will seek court approval of the transaction later this week. If that approval is granted, it is expected that the transaction will close at the end of November subject to the satisfaction of conditions customary in a transaction of this nature. Following the acquisition, Forzani intends to support the continuation of the restructuring of Athletes World under the Companies' Creditors Arrangement Act. In its most recently csompleted fiscal year, Athletes World generated $186 million in revenues, and currently operates 138 stores. The acquisition of Athletes World represents a great opportunity for Forzani to add another recognized national banner. Forzani management believes that Forzani buying power, operational expertise and experience will provide the necessary platform on which to base Athletes World's long-term profitability upon its emergence from CCAA proceedings. In order to maintain Athletes World's positioning and identity, Forzani anticipates that Athletes World will, as it has with its other banners, maintain dedicated office staff, store employees and operational functions. Once the proposed acquisition is completed, senior management of Forzani will host a conference call to discuss the acquisition and its plans for the Athletes World banner. As reported in the Troubled Company Reporter on Nov. 7, 2007, 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. 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 company has been in negotiation with Michael Gold relating to the sale of the company's assets and had reached an agreement last May. However, Mr. Gold backed out on the deal on October 29 which led to the company's bankruptcy filing the next day. Athletes World owes about $152 million, about $115 million of which is owed to its parent company, Bata. About The Forzani Group The Forzani Group Ltd. (TSX: FGL) -- http://www.forzanigroup.com/ -- is Canada's largest national retailer of sporting goods, offering a comprehensive assortment of brand-name and private- brand products, operating stores from coast to coast, under corporate banners: Sport Chek, Coast Mountain Sports, Sport Mart, National Sports and Hockey Experts. The company also retails on- line at -- www.sportmart.ca -- and provides a content rich sporting goods information site at -- www.sportchek.ca -- The Forzani Group is also a franchisor under the banners: Sports Experts, Intersport, Econosports, Atmosphere, Tech Shop, Pegasus, The Fitness Source and Nevada Bob's Golf. 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. BADRAN STORES: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Badran Stores Corp. Calle Atocha #24 Ponce, PR 00730 Bankruptcy Case No.: 07-06728 Chapter 11 Petition Date: November 13, 2007 Court: District of Puerto Rico (Old San Juan) Debtor's Counsel: Madeline Soto Pacheco, Esq. Lube & Soto Law Offices, P.S.C. 702 Calle Union Apt G-1 Condominio Unimar San Juan, pr 00907-4202 Tel: (787) 722-0909 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Rubio Imports, Inc. Trade debt $107,591 P.O. Box 3933 Aguadilla, PR 00605 Flamingo, Inc. Distribuidora Trade debt $63,288 P.O. Box 9066537 San Juan, PR 00906 Banco Santander Puerto Rico Trade debt $45,000 P.O. Box 362589 San Juan, PR 00936-2589 Fun Tech Imports, Inc. Trade debt $39,160 Royal Manufacturing Inc. Trade debt $38,462 Linen Universe Trade debt $36,360 Golden Sheets Factory, Inc. Trade debt $29,000 Nucci International Corp. Trade debt $25,976 Crest Home Design Trade debt $25,116 Goldenvale, Inc. Trade debt $24,434 Tomas R. Rivera & Hijo Trade debt $23,103 Vicente, Inc. Rent arrears $23,000 Horizon Int'l. Shipping, Inc. Trade debt $22,451 Gindi Imports, Ltd. Trade debt $19,232 Suarez Sales Inc. Trade debt $17,093 Gold American Art Inc. Trade debt $16,761 Sandra Santiago Rivera, Esq. Civil complaint $16,264 Omega/Nabat Inc. Trade debt $16,000 Better Homes Plastics Corp. Trade debt $15,312 Lati Fashions Int. Inc. Trade debt $11,536 BANYAN CORP: Sept. 30 Balance Sheet Upside-Down by $420,448 ----------------------------------------------------------- Banyan Corp.'s consolidated balance sheet at Sept. 30, 2007, showed $5,127,401 in total assets and $5,547,849 in total liabilities, resulting in a $420,448 total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $2,416,260 in total current assets available to pay $2,901,725 in total current liabilities. The company reported a net loss of $1,232,913 on revenues of $1,168,400 for the third quarter ended Sept. 30, 2007, compared with a net loss of $565,527 on revenues of $1,432,204 in the same period last year. A decrease in revenue from the diagnostic testing business of $281,300 accounted for most of the decrease in revenues. Loss from operations increased to $349,630 in 2007 from income of $217,855 in 2006 as a result of decreased revenue and increases in selling, general and administrative expenses. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?259e Going Concern Doubt Schwartz Levitsky Feldman LLP, in Toronto, expressed substantial doubt about Banyan Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations, working capital deficiency and net stockholders' deficit. About Banyan Corp. Headquartered in Beverly Hills, California, Banyan Corporation (OTC BB: BANY.OB) operates in two segments of the health care industry: diagnostic imaging and franchising Chiropractic USA chiropractic clinics. All clinics are operated by independent entrepreneurs under the terms of franchise arrangements. BASIS YIELD: Joint Provisional Liquidators Seek Summary Judgment ---------------------------------------------------------------- Hugh Dickson, Stephen John Akers and Paul Andrew Billingham, as joint provisional liquidators and authorized foreign representatives of Basis Yield Alpha Fund (Master), ask the U.S. Bankruptcy Court for the Southern District of New York to issue summary judgment recognizing Basis Yield's insolvency proceeding pending before the Grand Court of the Cayman Islands pursuant to Chapter 15 of the U.S. Bankruptcy Code. Karen B. Dine, Esq., at Pillsbury Winthrop Shaw Pittman LLP, in New York, tells the U.S. Court that not one party-in-interest has opposed recognition or challenged the Foreign Representatives' evidence that Basis Yield's "center of main interest" is located in the Cayman Islands. Ms. Dine asserts that Basis Yield is entitled to the statutory presumption provided for in the Bankruptcy Code that the Cayman Islands is the Fund's COMI because the Cayman Islands is the location of its registered office. Given this presumption, together with the lack of any factual dispute concerning the evidence already presented to the Court that the Foreign Debtor's COMI is located in the Cayman Islands, Ms. Dine contends that: -- the U.S. Court should not be compelled to expend further judicial resources; and -- the Foreign Representatives should not be required to expend significant amounts of time and money, to the detriment of Basis Yield's estate, producing additional evidence to the U.S. Court. Ms. Dine points out that the sole response filed to the Foreign Representatives' Recognition Motion was a limited objection by Citigroup Global Markets Limited to the proposed form of order granting recognition. The Limited Objection, she notes, only addresses the current form of proposed recognition order and expressly states that CGML "takes no position on whether the Joint Provisional Liquidators . . . have demonstrated the propriety of recognition of [the Cayman Islands Proceeding] as a main or non-main proceeding." The Limited Objection does not preclude a determination by the U.S. Court that the Foreign Representatives are entitled to summary judgment at this time, she says. Basis Yield is the master fund in a master-feeder structure. Basis Yield has one active feeder fund -- Basis Yield Alpha Fund, a registered mutual fund domiciled in the Cayman Islands and regulated by the Cayman Islands Monetary Authority. A further Cayman Islands registered mutual fund, Basis Yield Alpha Fund (US), was established with the intention of becoming Basis Yield's second feeder fund. BYAF(US) was intended to be marketed to U.S. taxable investors. BYAF(US) is currently, and has always been, dormant, however, and holds no shares in Basis Yield. Cayman Island-based Fortis Prime Fund Solutions (Cayman) Limited serves as administrator to Basis Yield and each of its feeder funds. Basis Yield's investment manager is a Cayman Islands company. The Foreign Representatives have petitioned the High Court of Justice, Chancery Division, Companies Court, in England pursuant to Section 426 of the Insolvency Act of 1986, and obtained recognition as joint provisional liquidators from the High Court of Justice. The Supreme Court of New South Wales also has granted the Foreign Representatives' application for orders compelling certain parties to turnover, among other things, documents and funds in their possession. "Third parties, including creditors, trading counterparties, and/or investors of Basis Yield, have appeared in the proceedings pending in the Cayman Islands and Australia; however, no foreign court or party appearing before a foreign court has challenged the basis for the liquidation proceeding in the Cayman Islands," Ms. Dine says. "This remains true today." Basis Yield has already produced sufficient evidence that the Cayman Islands proceeding should be recognized as a Foreign Main proceeding, Ms. Dine tells the Court. Basis Yield is entitled to the statutory presumption set forth in Chapter 15 and therefore, should not be required to produce further evidence of COMI at a full evidentiary hearing, Ms. Dine contends. Ms. Dine points out that Section 1516(c) provides that "[i]n the absence of evidence to the contrary, the debtor's registered office, . . . is presumed to be the center of the debtor's main interests." The Foreign Representatives are entitled to the benefit of the Bankruptcy Code's statutory presumption, Ms. Dine tells the Court. Other bankruptcy courts have made note of the presumption, Ms. Dine notes. In In re Tri-Continental Exch. Ltd., 349 B.R. 627, 635 (Bankr. B.D. Cal. 2006), Ms. Dine says the court held that "[i]n effect, the registered office (or place of incorporation) is evidence that is probative of, and that may in the absence of other evidence be accepted as a proxy for, 'center of main interests.' " Congress expressly chose to incorporate the statutory presumption into the Bankruptcy Code when it enacted Chapter 15 to help foreign debtors preserve time and money for the benefit of their true creditors, Ms. Dine asserts. International law is no different, she adds. "[T]he simple presumption laid down by the Community legislature in favour of the registered office of that company can be rebutted only if factors which are both objective and ascertainable by third parties enable it to be established that an actual situation exists which is different from that which locating it at that registered office is deemed to reflect," Ms. Dine cites Bondi v. Bank of America, NA. (In re Eurofood IFSC Ltd.), 2006 B.C.R. 1-3813, ~ 34 (B.C.J. May 2, 2006). Ms. Dine also argues that the decision in In re Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd.; 374 B.R. 122 (Bankr. S.D.N.Y. 2007), appeal docketed, Case No. 07- 08730-RWS (S.D.N.Y. Oct. 10, 2007), supports application of the presumptions provided for in Chapter 15 in Basis Yield's case. Ms. Dine explains that the Bear Stearns court characterized its decision as refusing to "rubber-stamp" the foreign debtors' request for recognition even in the absence of objections to recognition. The rationale throughout the Bear Stearns decision makes clear that while recognition is not to be "rubber stamped" by the court, a petitioner who has presented the required evidence to establish its prima facie case of recognition, where there is no evidence of a serious dispute about the petitioner's true center of interest, is entitled to the presumption that its registered office is its COMI, Ms. Dine says. Unlike the Bear Stearns' case, no controversy regarding Basis Yield's center of main interest -- serious or otherwise -- exists, and the facts before the U.S. Court are not doubtful, according to Ms. Dine. Key Dates The Foreign Representatives and CGML have stipulated that responses or objections, if any, to the Summary Judgment Motion must be filed and served so as to be received on or before December 6, 2007. Replies, if any, to the Summary Judgment Objections are due December 17. Replies, if any, to CGML's Limited Objection are due December 17. The U.S. Court will convene a hearing on the Summary Judgment Motion and all related responses on January 15, 2008, at 9:45 a.m. (New York time). The hearing may continue as ordered by the court. The U.S. Court will also take up CGML's Limited Objection and all related responses at the January 15 hearing. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BIG A DRUG: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Big A Drug Stores, Inc. aka Drug Emporium aka Drug Barn aka Big A Pharmacy aka Drug Fair aka Camelot Drug 12030 South Garfield Avenue South Gate, CA 90280 Tel: (562) 633-9578 Bankruptcy Case No.: 07-20699 Type of Business: The Debtor operates a chain of 21 retail drug stores, located throughout California. The company's stores offer full service pharmacies and over-the-counter drugs, cigarettes, optical products, liquor, general merchandise, groceries, beer and wine, and beverages. See http://www.bigadrug.com/ Chapter 11 Petition Date: November 19, 2007 Court: Central District Of California (Los Angeles) Judge: Samuel L. Bufford Debtor's Counsel: Steven R. Fox, Esq. 17835 Ventura Boulevard, Suite 306 Encino, CA 91316 Tel: (818) 774-3545 Fax: (818) 774-3707 Debtor's financial condition as of November 18, 2007: Total Assets: $18,788,648 Total Debts: $54,424,646 Debtor's list of its 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ PNC Bank Broad Form UUC-1 $31,337,741 c/o Leo Plotkin and interest in 3 Secured: Levy, Small & Lallas leaseholds (Colma, $9,599,145 815 Morage Drive La Palma and Unsecured: Los Angeles, CA 90049 South Gate) $21,738,596 AmerisourceBergen Junior Position $18,000,000 c/o Morton Branzburg UCC-1 in various 260 South Broad Street assets, security Philadelphia, PA 19102 value: $0 Core-Mark International, Inc. $1,604,114 c/o Robert Jackson 4495 Haleyville Street Aurora, CO 80016 Edward Dallal Loan to Business $960,000 c/o Daniel Weintraub Weintraub & Selth 12424 Wilshire Boulevard Suite 1120 Los Angeles, CA 90025 American Greetings Corp. Vendor $215,052 Western Union Vendor $200,000 L&R Distributors, Inc. Vendor $130,536 Southern CA Edison $125,720 Promotions Unlimited Corp. Vendor $98,382 Law Office of Brad S. Sures Newark Landlord $83,725 Lease Arrearages Variety Distributors, Inc. Vendor $81,700 Hallmark Marketing Corp. Vendor $74,250 PG&E $61,498 Quaker Sales & Distribution Vendor $58,431 Gourmet Award Foods Vendor $42,797 Focal Point Investment Banking Vendor $40,000 COTY US LLC Vendor $39,191 Forrester & Vos Co. Vendor $38,481 BIC USA, Inc. Vendor $37,980 Bargain Wholesale Vendor $31,439 BOMBAY COMPANY: Court OKs Sale of Corporate Headquarters for $16MM ------------------------------------------------------------------ The Honorable D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas gave authority to The Bombay Company Inc. and its debtor-affiliates to sell their corporate headquarters and related assets. As reported in the Troubled Company Reporter on Nov. 12, 2007, the Debtors will sell theur corporate headquarters to Goff Capital Inc. for $16.35 million. The property is a seven-story, 122,000-square-foot building and a parking garage at 550 Bailey Avenue in Fort Worth, Texas. In addition, Goff Capital will be assuming the unexpired leases of office spaces at the complex. The Debtor also provided adequate assurance of future performance pursuant to Section 365(f)(2) of the U.S. Bankruptcy Code, and no cure amounts are required to be paid to the office tenants pursuant to Section 365(b)(1). The Court acknowledges that the sale agreement constitutes the highest and best offer for the Bombay office complex and is appropriate to maximize the value to the Debtors' estates. About Bombay Company Basedc in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall decor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. Attorneys at Cooley, Godward, Kronish LLP act as counsel for the Official Committee of Unsecured Creditors. Forshey & Prostok LLP is the Committee's local counsel. As of May 5, 2007, the Debtors listed total assets of $239,400,000 and total debts of $173,400,000. BOSTON SCIENTIFIC: Amends Pact to Settle Product Claims ------------------------------------------------------- Boston Scientific Corporation has reached an amended agreement to settle claims associated with a series of product communications issued by Guidant Corporation in 2005 and 2006. Boston Scientific acquired Guidant last year. This agreement amends a prior agreement Boston Scientific reached in July 2007 to cover additional unanticipated claims. The amended agreement was reached during mediation sessions conducted before U.S. Magistrate Judge Arthur J. Boylan in Minneapolis. Under the terms of the amended agreement, subject to certain conditions, Boston Scientific will pay a total of up to $240 million. The agreement covers 8,550 patient claims, including all of those that have been consolidated in the U.S. District Court for the District of Minnesota in a Multi-District Litigation, well as other filed and unfiled claims throughout United States. As a result of the amendment, proceedings in Minnesota state court have -- like the trials in the bellwether cases in the MDL -- been stayed. Under the terms of the prior agreement, Boston Scientific had agreed to pay $195 million to settle over 4,000 claims in the MDL, well as an undetermined number of additional similar claims. The company stated that the claims covered by the amended agreement constitute substantially all currently asserted claims in the United States arising from the 2005 and 2006 product communications. "We are pleased with this amendment, which is in the best interest of all involved," Jim Tobin, president and chief executive officer of Boston Scientific, said. 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. BOYD GAMING: Fitch Affirms 'BB-' Issuer Default Rating ------------------------------------------------------ Fitch Ratings has affirmed Boyd Gaming's credit ratings as: -- Issuer Default Rating at 'BB-'; -- Senior Credit Facility at 'BB'; -- Senior Subordinated Debt at 'B+'. The ratings apply to roughly $2.2 billion of outstanding debt as of September 30, 2007. The Rating Outlook is Stable. The Stable Outlook is based on continued near-term stabilization of the Las Vegas locals market and continued operating pressure at Blue Chip and the Borgata. Beyond the next couple of quarters, operating results should benefit from hotel expansions at the Borgata (opens in mid-2008) and Blue Chip (opens late 2008). The ratings reflect Boyd's sizable and diversified portfolio of quality assets, successful operating history, strong liquidity position and solid credit metrics for the rating category. Boyd's credit benefits from being among the most diverse gaming operators with significant geographic and customer diversification. The company's near-term credit profile and free cash flow generation before dividends should continue to be solid since near-term capital expenditures are limited primarily to its Blue Chip expansion and spending on Echelon (its premier Las Vegas Strip project that is just beginning to ramp up as construction began in June 2007). Other potential projects such as Dania Jai Alai (Florida) and North Las Vegas have been delayed for the time being. However, there is near-term operating pressure at some of the company's properties, which is likely to somewhat offset the limited near-term spending profile. The Four Winds casino (a large tribal casino owned by the Pokagon Band of Potawatomi Indians) recently opened in New Buffalo, Michigan near Boyd's Blue Chip (Michigan City, IN) property and Harrah's is building a new $485 mil riverboat to replace its Horseshoe Hammond facility. Blue Chip's revenues have declined 22%-23% in September and October. The Borgata in Atlantic City continues to face additional competition from Pennsylvania and New York slot additions as well as a partial smoking ban. And Boyd's most important market, the Las Vegas locals market, has had to digest significant new capacity in the last 18 months while economic strains on the local economy have grown. However, the longer-term economic fundamentals remain solid in the LV locals market and the most recent quarter's results showed a return to revenue and EBITDA growth for Boyd's properties in the LV locals market. An additional credit concern includes the potential for increased Echelon development costs. Echelon is a $4.75 billion project that consists of a $3.3 billion wholly owned portion, a $950 million hotel joint venture with Morgans Hotel Group Co., and a $500 million retail joint venture with General Growth Properties Inc. MGM MIRAGE recently increased the cost for its large-scale LV Strip project, CityCenter, to $7.8 billion from $7.4 billion when it reported its Q307 earnings. While project cost creep is a concern, it is mitigated by the fact that Boyd currently has enough liquidity to fund the project with its cash from operations, Boyd's $4 billion bank facility, Borgata's cash distributions, and the $850 million credit facility at Borgata. In addition, the company's project development pipeline is discretionary and well staged. Strong Liquidity Profile As of September 30, Fitch calculates that Boyd had roughly $2.76 billion in liquidity including $2.7 billion available on its credit revolver, $153 million in cash, and offset by an estimated $97 million in cage cash. In addition, Borgata has roughly $200 million available on its $850 million credit facility as it had $656 million of debt outstanding as of September 30th. The company has effectively pushed out debt maturities to 2012 and beyond. Debt outstanding totaled $2.2 billion as of September 30. Spending on Echelon should drive higher debt balances later in 2008, but more significantly in 2009-2010, which is incorporated into current ratings. Current Fitch-adjusted LTM leverage and coverage were roughly 3.9 times -4.0x and 4.0x, respectively as of September 30th. Fitch estimates peak leverage during the Echelon development cycle could approach 6.5x-7.0x depending on the company's other development plans, while Boyd's credit facility allows for increasing leverage up to 7.5x in 2010. Fitch's ratings incorporate only one notch differential on the subordinated debt relative to the IDR because Fitch believes there is significant asset value and over collateralization of debt. Fitch's ratings also incorporate a one notch differential on the bank debt relative to the IDR because of over-collateralization with security in the form of capital stock of Boyd's subsidiaries. That is a weaker form of collateral than the previous credit facility, which had security in all of Boyd's real and personal property including each of its wholly-owned casino properties. Positive rating actions or change in outlook could be triggered by: -- an equity offering or other capital raising activity that reduces the debt-supported funding requirements of Echelon; -- a meaningful re-acceleration of growth in the Las Vegas locals market with a near-term improvement in the local economy; -- better-than-expected operating results at the Borgata and Blue Chip. Negative rating actions or change in outlook could be triggered by: -- a sizable share repurchase program or substantial dividend increase (although this is limited by BYD's credit agreement); -- a significant increase in Echelon development cost; -- worse-than-expected operating pressure at the Borgata and Blue Chip; -- project costs for the development of North Las Vegas or Dania Jai Alai meaningfully beyond Fitch's current expectations. BROTMAN MEDICAL: Section 341(a) Meeting Scheduled for January 8 --------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a hearing of creditors of Brotman Medical Center Inc. on Jan. 8, 2008, at 11:00 a.m., 725 S. Figueroa St., Room 2610 in Los Angeles, California. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. 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 selected Kurtzman Carson Consultants LLC as its claims and noticing agent. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $100 million. CABLE & CO: Continues Efforts to Meet AMEX Requirements ------------------------------------------------------- In support of the definitive agreement to acquire INmarketing Group Inc., Cable & Co. Worldwide Inc. planned to submit an application to the American Stock Exchange for membership during the year 2008. Actual timing of the application will depend upon various factors, including the completion of audited financials for 2007 and planned acquisitions. As part of the process to uplist from the pink sheets onto a major exchange, the company is considering submission of an application for uplisting to OTC.BB while it continues efforts to meet qualification requirements for the AMEX. "It is important to us and to our shareholders that Cable begin compliance with AMEX requirements immediately," Gary Stein, president of Cable, stated. "We believe that we will meet most of the listing requirements of the AMEX but for the share price. However, we believe that a case can be presented to waive the $3 threshold given the fact that we believe we meet each of the other criteria." "Cable is current in its SEC filing requirements and our Annual Report on Form 10-K which is due next month will include audited financials and all required disclosure with respect to our acquisitions," Mr. Stein further stated. "While recognizing that Cable meets the minimum profitability and shareholder equity requirements to qualify, we also recognize that uplisting to the American Stock Exchange is not going to happen overnight, as several things need to occur." "Additional news, regarding our subsidiary LifeHealthCare Inc. will be provided in the coming weeks, beginning mid-week next week, and of course we will keep you apprised," Mr. Stein concluded. About Inmarketing Group Inc. Based in New Jersey, InMarketing Group Inc. -- http://www.inmarketinggroup.com/-- is an incentive industry that deploys its exclusive, database-driven, web-enabled application to reward program strategies. INmarketing develops sales incentive programs, a safety incentive program, service award, recognition programs or customer loyalty programs for its customers. About Cable & Co. Headquartered in New York City, Cable & Co. Worldwide Inc. (Other OTC: CCWW.PK) was a manufacturer, designer, importer and wholesaler of men's shoes. In 1997, the company filed for bankruptcy chapter 11 protection in the Southern District of New York. Shortly after its filing, the company ceased all operations. While its bankruptcy filing was active, the company turned over title to all of its assets to its secured lender Heller Financial, Inc. Subsequently, the bankruptcy court closed the company's case on June 3, 1999. On Mar. 28, 2006, the company acquired all the stock of LifeHealth Care Inc., by issuing 600,000,000 shares of the company's common stock. LifeHealth is a startup company focused on dental and healthcare marketplace that has no revenues or tangible assets. Going Concern Doubt Chisholm, Bierwolf & Nilson LLC, in Bountiful, Utah, expressed substantial doubt about Cable & Co. Worldwide Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Sept. 30, 2006. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. CANADA 3000: PwC Holds $758,000 Ready for Distribution ------------------------------------------------------ Six years after Canada 3000 Holidays ceased operating due to bankruptcy, approximately $758,000 being held for refund to ticket holders who did not get their vacations remains unclaimed, according to PricewaterhouseCoopers Inc., the court-appointed judicial trustee for Canada 3000 Holidays. These funds are held in trust by PwC for distribution to legitimate claims holders of Canada 3000 Holidays, also known as C3 Aventure Limitee/C3 Leisure Limited. These funds are not available to claims against other entities that were part of the bankrupt Canada 3000 group. People in the target provinces with legitimate claims for a refund from Canada 3000 Holidays were issued a claim reference code beginning with the letter "V". Refund claims against other Canada 3000 entities were given reference codes beginning with different letters. PwC has successfully processed about 40,000 refunds to customers of the former Canada 3000 Holidays since November 2001, refunding 100 cents on the dollar. Mail and checks to about 2,700 legitimate claimants have been returned as undeliverable. These are people who have likely moved or changed their name and have not been successfully tracked down. As judicial trustee, PwC would like to get these funds into the hands of the people who paid for vacation travel that was never realized. The list of people with unsettled claims is posted to PwC's Web site at -- http://www.pwc.com/brs-canada3000 People on this list are urged to contact the Canada 3000 Holidays Claim Centre toll-free number at: 1 (888) 689-8233. Background: Timeline Nov. 8, 2001 Canada 3000 Airlines grounds its planes. Nov. 9, 2001 Canada 3000 Airlines and related entities cease operations. Nov. 16, 2001 Canada 3000 Holidays files for bankruptcy. Nov. 22, 2001 The British Columbia Court appoints PwC as Judicial Trustee of Canada 3000 Holidays. April 30, 2002 Deadline for Canada 3000 Holiday ticket holders to file a claim for refund. November 2002 The courts authorize payment of $0.40 on the dollar of proven claims against Canada 3000 Holidays. April 6, 2004 The courts authorize a further distribution of $0.10 on the dollar of proven claims. Dec. 9, 2005 The courts authorize PwC, as Judicial Trustee, to pay 100% of all proven claims against Canada 3000 Holidays. To arrange an interview with a PwC spokesperson to discuss this update or the claims process, please contact: Jim Nelson, Esq., at PwC, through telephone numbers (604) 806-7047. About Canada 3000 Holidays C3 Aventure Limitee/C3 Leisure Limited, dba Canada 3000 Holidays, is a tour operator. Its parent company is Canada 3000 Inc., which operates airlines and travel agencies. Other subsidiaries and affiliates of Canada 3000 Inc. are Canada 3000 Airlines Limited/ Lignes Aeriennes Canada 3000 Limitee, Royal Aviation Inc., Holiday Travel Consultants Ltd. (dba Canada 3000 Tickets), Canada 3000 Sales Limited, Canada 3000 Airport Services Limited, and Royal Handling Inc. On Nov. 9, 2001, Canada 3000 Airlines ceased operations. Following this date, Canada 3000 Airlines Limited and several related companies went bankrupt. PricewaterhouseCoopers Inc. was appointed judicial trustee in bankruptcy of the companies. C3 Leisure Limited, Holiday Travel Consultants Ltd. and Canada 3000 Sales Limited, in certain circumstances, were required to put into trust monies received from customers for services not yet provided. CARDTREND INTERNATIONAL: Posts $1,049,738 Net Loss in Third Qtr. ---------------------------------------------------------------- Cardtrend International Inc. reported a net loss of $1,049,738 on net revenue of $447,336 for the third quarter ended Sept. 30, 2007, compared with a net loss of $1,194,154 on net revenue of $12,911 for the same period last year. The improvement of the net revenue was due to the net revenues generated by Cardtrend Systems Sdn. Bhd and Payment Business Solutions Sdn Bhd which the company acquired at the end of October 2006 and early December 2006, respectively. The decrease in net loss was mainly due to decrease in stock based compensation and the gain in derivative liabilities. At Sept. 30, 2007, the company's consolidated balance sheet showed $7,706,614 in total assets, $1,193,144 in total liabilities, and $6,513,470 in total shareholders' equity. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $631,898 in total current assets available to pay $1,150,404 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?259d Going Concern Doubt RBSM LLP, in New York, expressed substantial doubt about Cardtrend International Inc., formerly Asia Payment Systems Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of Dec. 31, 2006, and 2005. The auditing firm reported that the company is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. As of Sept. 30, 2007, the company had a working capital deficit of $518,506 and an accumulated deficit of $13,205,760 since inception of its business. About Cardtrend International Headquartered in Seattle, Cardtrend International Inc. (OTC BB: CDTR) -- http://www.cardtrend.com/-- is the parent company of a group of payment and loyalty-reward related services companies. CATHOLIC CHURCH: Davenport Unable to File Plan by Nov. 16 Deadline ------------------------------------------------------------------ The Diocese of Davenport did not deliver its plan of reorganization to the U.S. Bankruptcy Court for the Southern District of Iowa by the November 16, 2007 deadline. According to reports, the Diocese's spokesman, Deacon David Montgomery, said on November 16 it was his understanding that the plan would be filed later in the day. However, the Diocese issued a press release in the afternoon saying it had agreed with its Official Committee of Unsecured Creditors to delay filing of the plan. "The parties are continuing with mediation to reach a settlement of the bankruptcy case," the release said, reports The Associated Press. The Diocese offered little explanation for missing the deadline, the AP added. As a result, Judge Jackwig notified parties-in-interest that he will convene a hearing on December 5, 2007, at 1:30 p.m. to determine why the Diocese's disclosure statement and plan of reorganization have not been filed. Judge Jackwig added that should the Plan and Disclosure Statement be filed in the interim, the status conference will focus in particular, on setting: (a) deadlines for filing objections to the Plan and Disclosure Statement and for filing ballots on the Plan; and (b) hearing dates related to the Plan and Disclosure Statement. Judge Jackwig directed parties to promptly advise the courtroom deputy of any settlement, scheduling conflict, or change in attorney handling the hearing. The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on October 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. Davenport's exclusive period to file a plan expired on Nov. 16, 2007. (Catholic Church Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Dismissal Order Issued in San Diego's Ch. 11 Case ------------------------------------------------------------------ the Hon. Louise DeCarl Adler of the U.S. Bankruptcy Court for the Southern District of California dismissed The Roman Catholic Bishop of San Diego's reorganization case effective November 1, 2007. The Court discharged (i) the Diocese from any further duties in the case, except to the extent of reserved matters, and (ii) the Official Committee of Unsecured Creditors from any further duties. Judge Adler held that upon dismissal, except as may be provided in the bankruptcy settlement agreement or the Order, none of the Diocese, the Creditors Committee or their members and representatives, will have any liability to any holder of a claim, asserted against the Diocese for any act or omission in connection with the case. However, the Order has no effect on any claims for sexual abuse, if any, that may have arisen during the reorganization case. The U.S. District Court for the Southern District of California and United States Magistrate Judge Leo S. Papas will retain jurisdiction in deciding all disputes regarding settlement terms and the interpretation and meaning of the Settlement Agreement. None of the professionals appointed by the Bankruptcy Court will be required to file any final fee applications, Judge Adler said. The Court directed the Diocese to pay: (a) these unpaid professionals fees and reimburse expenses, including the 20% holdback: Fees and Additional Firm/Professional Expenses Fees ----------------- -------- ---------- Pachulski Stang Ziehl $297,059 - & Jones LLP Deloitte Financial 124,814 $28,987 Advisory Services LLP Morgan, Lewis & 63,394 9,491 Bockius LLP (b) the final fees and costs of all other professionals retained in the Case, including the 20% holdback; and (c) the U.S. Trustee's quarterly fees through October 31, 2007. Morgan Lewis' and Deloitte Financial's rights to seek additional fees, representing fees for travel time, are reserved, Judge Adler held. The fees and expenses incurred by Father Thomas Doyle will be determined later based on certain billing detail from Pachulski Stang. The Order does not determine or affect the request of Pachulski Stang for a fee enhancement, which will be heard on December 6, 2007 at 10:30 a.m. Judge Adler directed the Diocese to prepare and file a summary report on its total disbursements of for the months of September and October 2007. All actions, which have been removed from any state court to the Bankruptcy Court, will be remanded to the state court, Judge Adler ruled. However, the Order will not apply to any actions removed to the District Court prior to February 27, 2007, she said. All objections to dismissal of the Reorganization Case were overruled. Prior to the entry of the Dismissal Order, Steven J. Katzman, the United States Trustee for Region 15, reminded the Court that the Order should include a provision for the payment of statutory U.S. trustee quarterly fees up until the dismissal of the case. 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 November 1, The Court dismissed the San Diego's bankruptcy proceeding. (Catholic Church Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CHAMPION PARTS: Taps McDermott Will as Special Counsel ------------------------------------------------------ Champion Parts Inc. asks the United States Bankruptcy Court for the Western District of Arkansas for permission to employ McDermott Will & Emery LLP as its special counsel. McDermott Will is expected to a) handle several ongoing environmental matters, including a matter regarding environmental clean up that the Debtor solely responsible for and is subject to government order; and b) negotiate with one of the Debtor's insurance carriers regarding coverage for various environmental and liabilities claims of more than $1 million which was about to bring substantial funds to the Debtor. The Debtor tells the Court that the firm requested a $10,000 retainer fee. Todd R. Weiner, Esq., an attorney of the firm, charges $695 per hour and the firm's other attorneys bill between $300 and $600 per hour. Mr. Weiner assure the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Headquartered in Hope, Arkansas, Champion Parts Inc. (OTC:CREBQ) -- http://www.championparts.net/-- remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket. The company filed for chapter 11 bankruptcy protection on Oct. 10, 2007 (Bankr. W.D. Ark. Case No. 07-73253). James F. Dowden, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed total assets of $26,389,000 and total debts of $25,251,000. CHAMPION PARTS: U.S. Trustee Unable to Appoint Creditors Committee ------------------------------------------------------------------ The U.S. Trustee for Region 16 was unable to appoint creditors to serve on an Official Committee of Unsecured Creditors for Champion Parts Inc.'s Chapter 11 case due to lack of interest at a meeting held on Nov. 19, 2007. According to the U.S. Trustee, the Debtor's unsecured creditors were advised of the time, place and purpose of the meeting by mail. Headquartered in Hope, Arkansas, Champion Parts Inc. (OTC:CREBQ) -- http://www.championparts.net/-- remanufactures fuel system components, air conditioning compressors, front wheel drive assemblies, and other underhood electrical and mechanical products for the passenger car and light truck, agricultural, heavy-duty truck and marine parts aftermarket. The company filed for chapter 11 bankruptcy protection on Oct. 10, 2007 (Bankr. W.D. Ark. Case No. 07-73253). James F. Dowden, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed total assets of $26,389,000 and total debts of $25,251,000. CITIGROUP COMMERCIAL: Fitch Holds 'BB+' Ratings on Two Classes -------------------------------------------------------------- Fitch Ratings has affirmed Citigroup Commercial Mortgage Trust, series 2006-FL2 as: -- $85.4 million class A-1 at 'AAA'; -- $237.2 million class A-2 at 'AAA'; -- Interest-Only class X-1 at 'AAA'; -- Interest-Only class X-2 at 'AAA'; -- Interest-Only class X-3 at 'AAA'; -- $17.9 million class B at 'AAA'; -- $20.9 million class C at 'AAA'; -- $38.8 million class D at 'AA+'; -- $26.9 million class E at 'AA-'; -- $26.9 million class F at 'A+'; -- $23.9 million class G at 'A'; -- $20.9 million class H at 'A-'; -- $22.4 million class J at 'BBB+'; -- $22.4 million class K at 'BBB'; -- $23.9 million class L at 'BBB-'; -- $817,531 class CAC-1 at 'BBB+'; -- $560,072 class CAC-2 at 'BBB'; -- $651,240 class CAC-3 at 'BBB-'; -- $1.9 million class CAN-1 at 'BBB+'; -- $2.8 million class CAN-2 at 'BBB'; -- $5.4 million class CAN-3 at 'BBB-'; -- $10.6 million class CNP-1 at 'BBB-'; -- $20.1 million class CNP-2 at 'BBB-'; -- $5.2 million class CNP-3 at 'BB+'; -- $1 million class DSG-1 at 'BBB-'; -- $5.8 million class MVP at 'BBB-'; -- $2 million class RAM-1 at 'BBB-'; -- $2.4 million class RAM-2 at 'BB+'. Fitch does not rate classes DHC-1, DHC-2, DHC-3, DS