T R O U B L E D C O M P A N Y R E P O R T E R Monday, November 26, 2007, Vol. 11, No. 280 Headlines 1775 AQUA: Submits Schedules of Assets and Liabilities 1775 AQUA: U.S. Trustee Will Not Appoint Creditors Panel 1775 AQUA: Wants Court Approval for Scott Orth as Counsel ADVANCED MEDICAL: Names Richard Meier as President AFFILIATED COMPUTER: Inks $18.5 Million Deal with Idaho Medicaid ALERIS INTERNATIONAL: Selling US Zinc Business for $295 Million BELL CANADA: To Redeem $850 Million of Debt on December 28 BCE INC: Gets Requisite Tenders for Preferred Share Conversions BODISEN BIOTECH: Posts $2.9 Million Net Loss in Third Quarter BROTMAN MEDICAL: Committee Balks at CapSource's DIP Financing CABLE & WIRELESS: Excessive Executive Payout Angers Investors CATHOLIC CHURCH: Murphy Named as UCR in Davenport's Case CATHOLIC CHURCH: Murphy Selects AlixPartners as Financial Advisor CHANCELLOR GROUP: Sept. 30 Balance Sheet Upside-Down by $573,157 COWCAT ENTERPRISES: Voluntary Chapter 11 Case Summary DELTA AIR: Pardus Urges Stock-for-Stock Merger with UAL EARTH BIOFUELS: Sept. 30 Balance Sheet Upside-Down by $20.5 Mil. EXPRESS FINANCIAL: Case Summary & 40 Largest Unsecured Creditors FASHION HOUSE: Sept. 30 Balance Sheet Upside-Down by $16.1 Million FEDERAL-MOGUL: To Issue $305,236,000 in Senior Notes FEDERAL-MOGUL: Thornwood to Own 25% of Reorganized Debtors' Stock GLO-TEX INTERNATIONAL: Involuntary Chapter 11 Case Summary IONICA PLC: Plan Supervisors To Pay Dividend on November 30 JOAN FABRICS: Court Converts Bankruptcy Case to Chapter 7 JOHN FRANCIS QUINN: Chapter 15 Petition Summary JOYCE DON ASSOCIATES: Court Approves Wolff Hill as Attorney LAFAYETTE NEIGHBORHOOD: Wants Court Permission to Sell Four Lots LAFAYETTE NEIGHBORHOOD: Wants to Hire Kim Davis as Broker LAFAYETTE NEIGHBORHOOD: U.S. Trustee Forms Seven-Member Committee LEVITT AND SONS: Court Okays AP Services as Crisis Managers LEVITT AND SONS: Gets Court OK to Close On Pre-Bankr. Home Sales LEVITT AND SONS: Court Oks Return of Escrowed Homebuyers' Deposits LEVITZ FURNITURE: Alters Retention Request for Rodman & Renshaw LEVITZ FURNITURE: Section 341(a) Meeting Scheduled on January 8 LYONDELL CHEMICAL: Launches Cash Tender Offer for $4 Billion Notes LYONDELL CHEMICAL: Shareholders Approve Basell Merger Plan MAJESTIC STAR: Setp. 30 Balance Sheet Upside-Down by $157.4 Mil. MARSHALL HOLDINGS: Posts $711,208 Net Loss in Third Quarter MATTRESS USA OF VA: Case Summary & 20 Largest Unsecured Creditors MORRIS LUMBER: Case Summary & 20 Largest Unsecured Creditors MYSTIQUE ENERGY: Posts CDN$3.3 Mil. Net Loss in Third Quarter 2007 NETBANK INC: Court OKs GGG Inc. as Crisis & Restructuring Managers NETBANK INC: U.S. Trustee Appoints Six-Member Creditors Committee NEXTPHASE WIRELESS: Sept. 30 Balance Sheet Upside-Down by $3 Mil. PROVIDENCE SERVICE: Earns $3.2 Million in Quarter Ended Sept. 30 QUEBECOR WORLD: Moody's Puts B3 Corp. Family Rating Under Review SECURITY WITH: Scott Sutton Resigns as President and Director SECURITY WITH ADVANCED: Posts $6.1 Mil. Net Loss in Third Quarter SEYCHELLE ENV'L: Aug. 31 Balance Sheet Upside-Down by $316,506 SHAFFER & SON: Voluntary Chapter 11 Case Summary SIENA TECH: Sept. 30 Balance Sheet Upside-Down by $3.5 Million SPECIALTY ORIENT: Voluntary Chapter 11 Case Summary STANDARD DRILLING: Posts $9,674,651 Net Loss in Third Quarter TAL ENTERPRISES: Judge Paskay Dismisses Chapter 11 Case TEN GRAND: Case Summary & 13 Largest Unsecured Creditors TEXHOMA ENERGY: June 30 Balance Sheet Upside-Down by $3,122,566 TEXHOMA ENERGY: March 31 Balance Sheet Upside-Down by $3,115,823 THOMAS KICINSKI: Case Summary & 11 Largest Unsecured Creditors TOPPS MEAT: Liquidates Under Chapter 7 with New Jersey Court TRUEYOU.COM: Amper Politziner Expreses Going Concern Doubt UAL CORP: Pardus Urges Stock-for-Stock Merger with Delta VISION DEVELOPMENT: Can Access Cash Collateral from CORUS Bank VISION DEVELOPMENT: Court Approves Greenberg as Special Counsel WATERFORD WEDGWOOD: Cost-Cutting Measures to Affect 1,400 Jobs WESTBANK CHRISTIAN: Voluntary Chapter 11 Case Summary WILLIAM STREET: Case Summary & 18 Largest Unsecured Creditors * BOND PRICING: For the Week of November 19 - November 23, 2007 ********* 1775 AQUA: Submits Schedules of Assets and Liabilities ------------------------------------------------------ 1755 Aqua Vista II LLC submitted to the U.S. Bankruptcy Court for the Southern District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property $14,000,000 B. Personal Property C. Exempt Property D. Creditors Holding $4,520,000 Secured Claims E. Creditors Holding Unsecured Priority Claims F. Creditors Holding $1,620,958 Unsecured Non-Priority Claims ----------- ---------- TOTAL $14,000,000 $6,140,958 North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. 1775 AQUA: U.S. Trustee Will Not Appoint Creditors Panel -------------------------------------------------------- The United States Trustee informed the U.S. Bankruptcy Court for the Southern District of Florida that until further notice, it will not appoint members to the Official Committee of Unsecured Creditors in the bankruptcy case of 1755 Aqua Vista II LLC. About 1755 Aqua Vista North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. 1775 AQUA: Wants Court Approval for Scott Orth as Counsel --------------------------------------------------------- 1755 Aqua Vista II LLC asks the U.S. Bankruptcy Court for the Southern District of Florida for permission to employ the Law Offices of Scott Alan Orth, PA, as its counsel. Scott Orth will: a. advise the Debtor with respect to its powers and duties as debtors and the continued management of business operations; b. advise the Debtor with respect to its responsibilities in complying with the United States Trustee's operating guidelines and reporting requirements and with the rules of the Court; c. prepare motions, pleadings, orders, applications adversary proceedings, and other legal documents necessary in the administration of the case; d. protect the interest of the Debtor in all matters pending before the Court; and e. represent the Debtor in negotiations with its creditors in the preparation of sale papers and a chapter 11 plan. The Debtor has agreed to pay Scott Alan on an hourly basis: Professional Rate ------------ ---- Scott Orth, Esq. $325 John Penson, Esq. $265 Other attorneys and paralegals will render services to the Debtor as needed. The Debtor relates to the Court that its principal has paid Scott Orth a $10,000 retainer. The the best of the Debtor's knowledge, Scott Orth does not represent any interest adverse to it or its estate. The firm can be reached at: Scott Alan Orth, Esq. The Law Offices of Scott Alan Orth, PA 9999 Northeast, 2 Avenue #204 Miami Shores, FL 33138 Tel: (305) 757-3300 About 1755 Aqua Vista North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. ADVANCED MEDICAL: Names Richard Meier as President -------------------------------------------------- Advanced Medical Optics Inc. has appointed Richard (Randy) A. Meier as its president. He retains his existing chief operating officer title and responsibilities, which include leadership of the company's eye care and cataract/implant businesses, global customer services and manufacturing operations. James V. Mazzo who remains the company's chairman and chief executive officer previously held the title of president at AMO. "Randy has assumed increasingly broad leadership roles since our spin-off in 2002 and, over that time, has played an integral role in the growth and development of our company," said Mr. Mazzo. "I am confident in his ability to serve as president, continuing to work closely with me and the AMO leadership team to execute our strategy and deliver on our operational and financial goals." Mr. Meier joined AMO in 2002 as corporate vice president and chief financial officer. He subsequently held various positions, including executive vice president, operations and president, eye care business. In February 2007, he was named chief operating officer and chief financial officer, a position he held until October 2007, when Michael Lambert, 45, joined the company as chief financial officer. Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service downgraded Advanced Medical Optics, Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from B1. The rating outlook was revised to stable. These rating actions conclude the review process for possible downgrade, which began on May 29, 2007. AFFILIATED COMPUTER: Inks $18.5 Million Deal with Idaho Medicaid ---------------------------------------------------------------- Affiliated Computer Services, Inc. disclosed a contract with the Idaho Department of Health and Welfare to provide pharmacy benefits management services for its Medicaid program. The contract has a length of up to 10 years and a total value of $18.5 million, if a three-year option is exercised. This contract extends a relationship that originated in 2002, when Affiliated Computer first implemented SmartPA(R), an automated prior authorization solution. The company will provide several pharmacy benefits management solutions, including pharmacy claims processing, automated prior authorizations using SmartPA, help desk support, Prospective Drug Utilization Review, Retrospective Drug Utilization Review, federal and supplemental drug rebate administration using the company's Drug Rebate Analysis and Management System, and reporting using CyberFormance(TM). "We are pleased to have the opportunity to expand and continue our successful pharmacy benefits management partnership with the Department of Health and Welfare," said Government Healthcare Solutions senior vice president and managing director, Christopher T. Deelsnyder. "This partnership demonstrates that we work closely with our clients to help ensure the success of their vision for providing patients with the best care possible through innovative clinical and technology solutions." About Affiliated Computer Services 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. ALERIS INTERNATIONAL: Selling US Zinc Business for $295 Million --------------------------------------------------------------- Aleris International, Inc., has entered into a definitive agreement to sell its Zinc business, which operates under the name US Zinc, to affiliates of Votorantim Metais Ltda. for $295 million with certain adjustments for working capital and other items. Closing is subject to regulatory approvals and customary closing conditions. "The sale of US Zinc will allow Aleris to focus on our core Aluminum business," Aleris's Chairperson and Chief Executive Officer, Steven J. Demetriou said. "We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris." US Zinc recycles zinc metal for use in the manufacture of galvanized steel and produces value-added zinc products, primarily zinc oxide and zinc dust, which are used in the vulcanization of rubber products, the production of corrosion-resistant paint and in other specialty chemical applications. US Zinc operates six zinc facilities in the United States and a newly built zinc oxide facility located outside of Shanghai, China. About Aleris Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent $105 million 9% senior notes due 2014, which are an add-on to the company's existing $600 million 9% senior notes due 2014. BELL CANADA: To Redeem $850 Million of Debt on December 28 ---------------------------------------------------------- Bell Canada, a wholly owned subsidiary of BCE Inc., will redeem, prior to maturity, $850 million of debt on Dec. 28, 2007, as it is advantageous for the company to redeem debt that would otherwise be maturing over the next six months. This redemption will include all of Bell Canada's outstanding $700 million principal amount of 6.25% Series M-10 MTN Debentures due Jan. 18, 2008, and all of Bell Mobility Inc.'s outstanding $150 million principal amount of 6.55% Series F Senior Unsecured Debentures due June 2, 2008. The Series M-10 Debentures will be redeemed at a price equal to $1,000.901 per $1,000 of principal amount of debentures plus $27.911 for accrued and unpaid interest to the date of redemption. The Series F Debentures will be redeemed at a price to be determined in accordance with their terms and conditions as calculated on Nov. 28, 2007. Registered holders of Series M-10 Debentures and Series F Debentures will be sent notices providing the respective details of these redemptions, including where to present their debentures for payment. Headquartered in Montreal, Bell Canada -- http://www.bell.ca/-- is a communications company, providing consumers with solutions to all their communications needs, including telephone services, wireless communications, high-speed Internet, digital television and voice over IP. Bell also offers integrated information and communications technology services to businesses and governments, and is the Virtual Chief Information Officer to small and medium businesses. Bell is proud to be a Premier National Partner and the exclusive Communications Partner to the Vancouver 2010 Olympic and Paralympic Winter Games. Bell is wholly owned by BCE Inc. (TSX/NYSE: BCE). * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on BCE Inc. and wholly owned subsidiary Bell Canada to 'BB-' from 'A-'. BCE INC: Gets Requisite Tenders for Preferred Share Conversions --------------------------------------------------------------- BCE Inc. disclosed that 6,991,775 of its 8,852,620 Cumulative Redeemable First Preferred Shares, Series Z have been tendered for conversion, on a one-for-one basis, into Cumulative Redeemable First Preferred Shares, Series Y. In addition, 12,825 of its 1,147,380 Series Y Preferred Shares have been tendered for conversion, on a one-for-one basis, into Series Z Preferred Shares. Consequently, on Dec. 1, 2007, BCE will have 8,126,330 Series Y Preferred shares and 1,873,670 Series Z Preferred shares issued and outstanding. The Series Y Preferred Shares and the Series Z Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.Y and BCE.PR.Z respectively. The Series Y Preferred Shares will pay a monthly floating adjustable cash dividend for the five-year period beginning on Dec. 1, 2007, as and when declared by the Board of Directors of BCE. The Series Z Preferred Shares will pay on a quarterly basis, for the five-year period beginning on Dec. 1, 2007, as and when declared by the Board of Directors of BCE, a fixed dividend based on an annual dividend rate of 4.331%. Under and subject to the terms and conditions of a definitive agreement entered into by BCE Inc. in connection with its acquisition by an investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners, LLC, the purchaser has agreed to purchase all outstanding Series Y Preferred Shares for a price of $25.50 per share, together with accrued but unpaid dividends to the Effective Date. The purchaser has also agreed, on and subject to the terms and conditions of the Definitive Agreement, to purchase all outstanding Series Z Preferred Shares for a price of $25.25 per share, together with accrued but unpaid dividends to the Effective Date. The Board of BCE Inc. has received opinions as to the fairness, from a financial point of view, of the consideration to be paid for the preferred shares from BCE Inc.'s financial advisors. Headquartered in Montreal, Quebec, BCE Inc. (TSX/NYSE: BCE) -- http://www.bce.ca/-- is a communications company, providing comprehensive and innovative suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services. Other BCE holdings include Telesat Canada and an interest in CTVglobemedia. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on BCE Inc. and wholly owned subsidiary Bell Canada to 'BB-' from 'A-'. BODISEN BIOTECH: Posts $2.9 Million Net Loss in Third Quarter ------------------------------------------------------------- Bodisen Biotech Inc. reported a net loss of $2.9 million on net revenue of $2.3 million for the third quarter ended Sept. 30, 2007, compared with net income of $3.2 million on net revenue of $12.7 million in the same period in 2006. At Sept. 30, 2007, the company's consolidated balance sheet showed $77.4 million in total assets, $1.1 million in total liabilities, and $76.3 millionin total stockholders' equity. The significant decrease in revenue was due to the much smaller customer base in the three months ended Sept. 30, 2007, as compared to Sept. 30, 2006, as a result of the loss of customers following the company's delisting from the American Stock Exchange, as well as, to a lesser extent, a storm and drought, which affected crop plantings in the three-month period and decreased the use of fertilizers. Net operating expenses increased to $3.5 million for the three months ended Sept. 30, 2007, from $1.7 million for the three months ended Sept. 30, 2006. The significant increase is due to a loss of approximately $1.7 million due to storm damage in August 2007. Excluding the effects of the storm damage, operating expenses increased slightly, primarily due to increased labor costs. The company had total non-operating expense of $557,842 for the three months ended Sept. 30, 2007, compared to total non-operating income of $28,817 for the three months ended Sept. 30, 2006. Other expense amounted to $639,729 for the three months ended Sept. 30, 2007, compared to $31,771 for three months ended Sept. 30, 2006. The increase is primarily the result of a foreign currency transaction loss. Going Concern Doubt As reported in the Troubled Company Reporter on May 8, 2007, Kabani & Company Inc., in Los Angeles, expressed substantial doubt about Bodisen Biotech Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to certain lawsuits filed by investors against the company and the company being subject to potential claims from certain investors who have a right to receive the company's shares. Lawsuits filed by Shareholders In late 2006, various shareholders of the company filed eight purported class actions in the U.S. District Court for the Southern District of New York against the company and certain of its officers and directors, asserting claims under the federal securities laws. The complaints contain general and non-specific allegations about prior financial disclosures and its internal controls and a prior, now-terminated relationship with a financial advisor. The eight actions are Stephanie Tabor vs. Bodisen Inc., et al., Case No. 06-13220 (filed November 2006), Fraser Laschinger vs. Bodisen Inc., et al., Case No. 06-13254 (filed November 2006), Anthony DeSantis vs. Bodisen Inc., et. al., Case No. 06-13454 (filed November 2006), Yuchen Zhou vs. Bodisen Inc., et. al., Case No. 06-13567 (filed November 2006), William E. Cowley vs. Bodisen Inc., et. al., Case No. 06-13739 (filed December 2006), Ronald Stubblefield vs. Bodisen Inc., et. al., Case No. 06-14449 (filed December 2006), Adam Cohen vs. Bodisen Inc., et. al., Case No. 06- 15179 (filed December 2006) and Lawrence M. Cohen vs. Bodisen Inc., et. al., Case No. 06-15399 (filed December 2006). The court has consolidated each of the actions into a single proceeding. The time for the company to respond formally to these lawsuits has not come and thus, the company has not done so. The complaints do not specify an amount of damages that plaintiffs seek. About Bodisen Biotech Headquartered in Shaanxi province, China, Bodisen Biotech Inc. (Other OTC: BBCZ.PK) -- http://www.bodisen.com/-- is a Delaware corporation which manufactures liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw materials certified by the Petroleum Chemical Industry Administrative office of China, Shaanxi provincial government and Chinese government. BROTMAN MEDICAL: Committee Balks at CapSource's DIP Financing ------------------------------------------------------------- The Official Committee of Unsecured Creditors ask the United States Bankruptcy Court for the Central District of California to deny Brotman Medical Center Inc. access to CapSource Finance LLC's postpetion financing. In its objection, the Committee argued that the financial covenants contained in the DIP agreement the Debtor entered into with CapitalSource could create an undue risk of default. The Committee points out, among others, that the permitted variance should be 10% rather than 5% as set forth in the agreement, which will provide the Debtor opportunity to comply. The Committee said that CapSource seeks to deny the Debtor's unsecured creditors and the estates basic bankruptcy rights to which both are entitled. As a result, CapSource obtained advantage at the expense of the unsecured creditors, according to the Committee. The Committee listed provisions prejudicial to unsecured creditors and the estate, among others: a) fire sale process ensuring generation of less than the maximum value; b) waiver of the estate's rights to seek use of cash collateral if CapSource ceases to fund; c) abbreviated period during which the Committee may investigate and challenge CapSource's prepetiton claims and liens; d) automatic relief from stay upon default with no hearing or further Court order; and e) waiver of the estate's right to contest any demand made by CapSource in connection with the DIP financing. As reported in the Troubled Company Reporter on Nov. 8, 2007 the Debtor obtained authority, on an interim basis, from the Court to access up to $19,875,000 in postpetition financing from CapitalSource Finance LLC. The Debtor told the Court that before the bankruptcy filing CapitalSource made certain loans, revolving credit and other financial accomodations available to the Debtor. 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 Committee'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 has selected Kurtzman Carson Consultants LLC as its claims and noticing agent. Thomas E. Patterson, Esq., David A. Fidler, Esq., Stacia A. Neeley, Esq., and Courtney E. Pozmantier, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Debtor. The Official Committee of Unsecured Creditors has selected Benjamin S. Seigel, Esq., and Paul S. Arrow, Esq., at Buchalter Nemer, as its counsel. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 22, 2008. CABLE & WIRELESS: Excessive Executive Payout Angers Investors ------------------------------------------------------------- Cable & Wireless plc is facing yet another dispute with investors and unions over excessive executive rewards following a management shake-up, the Times reports. On Nov. 13, 2007, C&W implemented changes to the management of its International business in preparation for driving the next phase of its value creation. Harris Jones is to step down as chief executive of International and as a director, and leave the business towards the end of 2007 once handover is complete. As disclosed, Mr. Jones will receive his contractual entitlement on leaving, including GBP4.3 million for his pro-rated share in the Long Term Incentive Plan having delivered value creation on behalf of shareholders from International of over GBP1 billion since he joined in November 2004, of which three quarters of a billion has been created since the commencement of the LTIP on April 1, 2006. There will be no additional charge to shareholders for the LTIP regarding this management change as there is a finite pool of units in the plan. However, according to investors, Mr. Jones' departure came amid a weakening performance in the company's international division, the Times relates. John Pluthero is to become executive chairman of International with immediate effect, while continuing his similar role for Europe, Asia & US. Mr. Pluthero will receive 50% of Mr. Jones' LTIP units for the remaining life of the LTIP after deduction of the LTIP payment above to Mr. Jones. Peter Montagnon, the Association of British Insurers' director of investment affairs, told the Times it would go over the latest revisions of the C&W's remuneration scheme, which he describes as "quite unusual". At its Annual General Meeting on July 20, 2007, C&W recommended the removal of the GBP20 million cap on the amount that can be received by an individual within the LTIP, which angered investors, Elizabeth Judge writes for the Times. Headquartered in London, England, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. CATHOLIC CHURCH: Murphy Named as UCR in Davenport's Case -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Iowa approved the request of The Diocese of Davenport and the Official Committee of Unsecured Creditors and appointed Michael Murphy of Alix Partners LLP, as the Unknown Claims Representative. As reported in the Troubled Company Reporter on Oct. 9, 2007, the Debtor and the Committee continued their ongoing discussions regarding the structure of a joint and consensual plan of reorganization. According to Richard A. Davidson, Esq., at Lane & Waterman LLP, in Davenport, Iowa, one of the key elements of the plan is the appointment of an unknown claims representative to represent the interests of unknown claimants and minors, specifically individuals: a. under the age of 18 as of the bankruptcy filing; b. who recovered their repressed memories of sexual abuse after the bankruptcy filing; c. who had not, as of the Petition Date, discovered both the injury and the causal relationship between the injury and the sexual abuse; and d. whose mental illness -- including but not necessarily limited to, depression, post-traumatic stress disorder, and anxiety -- tolled the statute of limitations applicable under Iowa law for bringing a claim of sexual abuse. The Diocese believes that the claimants in the four categories hold current claims by virtue of past acts of abuse, even though the claims may be unknown as of the present time. Thus, the Debtor proposes that the individual appointed be called an "Unknown Claims Representative" and that those persons, if any, holding the claims be referred to as "Unknown Claimants". "It is necessary for the Diocese to be able to confirm a plan of reorganization that deals with current claims (disclosed or not), and any claims that might legitimately arise in the future based on the prepetition conduct of the Debtor," Mr. Davidson told Judge Jackwig. It is necessary that all constituencies who assert or might assert claims against the Diocese arising out of sexual abuse by clergy or other workers associated with the Diocese have an opportunity to be heard in the Reorganization Case, he added. Mr. Davidson noted that the Diocese and the Committee recognize that the appointment of an Unknown Claims Representative is akin to the appointment of another committee to represent the interests of persons holding Tort Claims. However, the Diocese and the Committee do not expect that the Unknown Claims Representative will materially increase the administrative cost of the estate, Mr. Davidson said. Instead, the Diocese expects that the parties will work cooperatively where the interests of their clients are similar, to avoid unnecessary and unreasonable duplication of efforts and to preserve assets of the estate. The Diocese has a very limited set of resources upon which it can draw to satisfy the present and unknown claims resulting from the sexual abuse by clergy and others in the Diocese, Mr. Davidson explained. The main source of recovery for all creditors is from the insurance carriers. For the process to work, the insurance carriers must accept their liability for the claims and an Unknown Claims Representative must be appointed to represent the interests of the Unknown Tort Claimants, Mr. Davidson maintained. About Diocese of Davenport 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. The Debtor was unable to file a Chapter 11 Plan of Reorganization when its exclusive plan-filing period 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: Murphy Selects AlixPartners as Financial Advisor ----------------------------------------------------------------- Michael Murphy, the Unknown Claims Representative in the Chapter 11 case of The Diocese of Davenport, obtained authority from the U.S. Bankruptcy Court for the Southern District of Iowa to retain AlixPartners, LLC, s his financial advisors in performing his duties as FCR, nunc pro tunc to Aug. 28, 2007 AlixPartners has been retained by the Official Committee of Unsecured Creditors as its Internet Web site administrator, and as claims agent for the Diocese. Mr. Murphy informs the Court that AlixPartners is nationally recognized in providing financial advisory and consultative services in restructurings and reorganizations on behalf of debtors, creditors, and special interest parties throughout the United States. He says that its experience in bankruptcy makes it particularly qualified to act as advisors to the FCR. As financial advisors, AlixPartners will: -- prepare an estimation of future claims while reviewing historical patterns and recent developments in law and the claims environment of other Chapter 11 cases; -- determine the amount of future claims liability and confirm the propriety of future settlements process by validating the Diocese's financial ability to meet future obligations, as well as underlying process, like funding and annuity; -- identify and address impact of important qualitative factors, including impact of current and prospective state laws and the Bankruptcy Code, as well as recent developments in other similar Chapter 11 cases; -- confirm abuse reports and abuse claims including date- ranges, ages of individuals involved, prior and pending settlements, current claim status and other critical factors; and -- render other advice and services as required by Mr. Murphy. AlixPartners will be paid an hourly rate of $350, and will be reimbursed for its expenses according to its customary reimbursement policies. AlixPartners will only bill the bankruptcy estate for travel expenses and will not bill for its non-working travel time. Mr. Murphy, as managing director of AlixPartners, assures the Court that the firm is a "disinterested person" under applicable sections of the Bankruptcy Code. About Diocese of Davenport 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. The Debtor was unable to file a Chapter 11 Plan of Reorganization when its exclusive plan-filing period expired on Nov. 16, 2007. (Catholic Church Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CHANCELLOR GROUP: Sept. 30 Balance Sheet Upside-Down by $573,157 ---------------------------------------------------------------- Chancellor Group Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $5,698,702 in total assets and $6,271,859 in total liabilities, resulting in a $573,157 total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $313,185 in total current assets available to pay $863,515 in total current liabilities. The company reported a net loss of $3,752 on oil and natural gas sales of $1,058,486 for the third quarter ended Sept. 30, 2007, compared with a net loss of $17,612 on $-0- of revenues for the same period last year. The company had no production operations in calendar year 2006. Oil production operations began April 16, 2007. During the three month period ending Sept. 30, 2007, the company produced and sold 9,131 barrels of oil and produced and sold 23,689 mcf gas, generating $1,048,032 revenues after royalties, with a one month lag in receipt of revenues for the prior months sales. Start up expenditures, included debt origination expenditures, and the required prepaid hedge were $251,456. The company had 84 wells actually producing oil and gas on April 16 and restored an additional 82 wells by September 30. On Oct. 30, 2007, due to notices of default received from Western National Bank and CapWest Resources Inc., the company filed a bankruptcy petition under Chapter 11 of the United States Bankruptcy Code, and the company's operating subsidiaries, Gryphon Production Company LLC and Gryphon Field Services LLC, filed bankruptcy petitions under Chapter 11 of the Code on Oct. 29, and Oct. 30, 2007, respectively. 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?25aa About Chancellor Group Headquartered in Pampa, Texas, Chancellor Group Inc. (PNK: CHAG.PK) -- http://www.thechancellorgroup.net/-- is in the business of acquisition, exploration, and development of natural gas and oil properties. The company and two of its debtor- affiliates filed for Chapter 11 protection on Oct. 30, 2007 (Bankr. N.D.Tex. lead Case No. 07-20512). Bill Kinkead, Esq. represents the Debtors in their restructuring efforts. When the Debtors filed for protection against its creditors, they listed total assets of $5,649,018 and total debts of $6,228,336 COWCAT ENTERPRISES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Cowcat Enterprises, Inc. 555 Southwest 148th Avenue Fort Lauderdale, FL 33325 Bankruptcy Case No.: 07-20282 Chapter 11 Petition Date: November 21, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: Raymond B Ray Debtor's Counsel: Edward J. Peterson III, Esq. Stichter, Riedel, Blain & Prosser, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. DELTA AIR: Pardus Urges Stock-for-Stock Merger with UAL ------------------------------------------------------- Pardus Capital Management LP, a New York hedge fund with more than $3,000,000,000 in assets, urged United Airlines and Delta Air Lines to merge next year in a stock-for-stock transaction, according to reports. The Chicago Tribune says former Continental Airlines Inc. CEO Gordon Bethune, an adviser to Pardus, led the 1 1/2-hour presentation for Delta and United's major shareholders. The meeting was hosted by Merrill Lynch & Co. According to The Wall Street Journal, Pardus, which purportedly owns 5,600,000 shares of UAL and 7,000,000 shares of Delta, said a combination of the No. 2 and No. 3 U.S. carriers by traffic, makes sense at a time when high fuel prices are threatening to wipe out U.S. carriers' newfound profitability. Combining United and Delta would create a global network that would be favored by business travelers and save about $585,000,000 a year by 2012, Pardus added, reports Bloomberg News. This is slightly less than the carriers' combined projected earnings of $629,000,000, says Chicago Business News. A United-Delta merger ideal also would steer more Delta passengers onto United's Pacific routes and more United passengers onto Delta's Latin American destinations, Chicago Business notes. "We believe it is imperative that you seek to enter into a merger transaction with another carrier given the rapid rise in fuel prices and the increased risk to the business as a stand-alone entity," Pardus President Karim Samii and Shane Larson, a principal, told Delta in a letter, reports Bloomberg. Pardus apparently studied mergers involving Delta and three other carriers before recommending United as "the most attractive and practical combination," Bloomberg adds. No Merger Talks "We appreciate receiving Pardus' views on the best course for Delta's future," Delta Air Lines CEO Richard Anderson said in a statement. "We have been consistent in our public statements that Delta believes that the right consolidation transaction could generate significant value for our shareholders and employees and that strategic options should be evaluated. With oil at over $90 a barrel, this analysis takes on a heightened importance as we factor those prices into our long-term planning process." However, Mr. Anderson denied reports ran by The Associated Press that it engaged in merger talks with United Airlines in early November. The AP, in its report, said, part of the United and Delta merger talks was a plan to keep the United name and corporate headquarters in Chicago. "There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions," Mr. Anderson said. "Delta will not speculate on possible airline consolidation and has reiterated its position on the issue." United Spokeswoman Jean Medina said, "We do not respond to wholly inaccurate statements made by people who claim to have knowledge when they clearly do not," reports Bloomberg. Moreover, the United Master Executive Council has established that there are no such talks between the two carriers, said Captain Mark Bathurst, Chairman of the United Master Executive Council. "The United pilots have made a significant investment in the future of our airline and have made it abundantly clear to management that we will be opposed to any transaction that does not fully recognize our sacrifices and contributions," said Captain Bathurst. "We will protect the interests and the future of United pilots. All interested parties should understand that any plans to merge or consolidate with Delta or any other carrier will not be met with a rubber stamp from this pilot group. "We also remind management -- and Wall Street -- that it is the pilots and other employees who have suffered under this management group. Interested parties need to recognize that the true assets of this corporation are the pilots and other employees and we will not sacrifice again to facilitate consolidation," Captain Bathurst added. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. At Sept. 30, 2007, the company's balance sheet showed total assets of $25,608,000,000 and total liabilities of $22,968,000,000. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of $32.7 billion and total liabilities of $23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was $13.5 billion. * * * As reported in the Troubled Company Reporter Oct. 18, 2007, Standard & Poor's Ratings Services affirmed its ratings on Delta Air Lines Inc. (B/Positive/--) and revised the rating outlook to positive from stable. The outlook revision is based on continued strong earnings, cash flow generation, and debt reduction. EARTH BIOFUELS: Sept. 30 Balance Sheet Upside-Down by $20.5 Mil. ---------------------------------------------------------------- Earth Biofuels Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $87.2 million in total assets and $107.7 million in total liabilities, resulting in a $20.5 million total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $7.4 million in total current assets available to pay $107.7 million in total current liabilities. The company reported a net loss of $35.2 million on sales revenue of $6.5 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $15.7 million on sales revenue of $16.6 million in the same period last year. The decrease in total revenue is primarily the result of decreased sales of biodiesel. Of the net loss for the three months ended Sept. 30, 2007, approximately $6.6 million related to losses on investments deemed impaired, and approximately $27.3 million related to interest expense on short term convertible debts and long term debts. A gain totaling $22.8 million was recorded in 2006 relating to convertible debts and securities. Compensation for three months ended Sept. 30, 2007, decreased approximately $25.3 million and related primarily to shares issued to consultants for employees and consulting services in 2006. Other selling, general and administrative expenses for three months ended Sept. 30, 2007, decreased approximately $4 million from approximately $5.8 million for the same period in 2006. Total revenue for the nine months ended Sept. 30, 2007, decreased $12.5 million, or 39%, to approximately $19.9 million from approximately $32.4 million in 2006. The company incurred net losses and negative cash flows from operations of approximately $94.0 million and $15.6 million, respectively, for the nine months ended Sept. 30, 2007. Of the net losses for the nine months ended Sept. 30, 2007, approximately $10.9 million related to the impairment of goodwill and intangibles, $15.5 million related to losses on investments deemed impaired, and accrued interest and penalties totaling $51.7 million. 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?25b0 Liquidity and Capital Resources The company had approximately $63,000 in cash and cash equivalents at Sept. 30, 2007. Net cash used in operating activities was approximately $15.6 million for nine months ended Sept. 30, 2007, compared to net cash used in operating activities of approximately $18.7 million for the same period in 2006. The decrease in net cash flow used in operating activities relates to decreasing operating costs as a result of reducing production of biodiesal fuels due to current economic prices of feedstock. Net cash used in investing activities was approximately $6.7 million for nine months ended Sept. 30, 2007, compared to net cash used in investing activities of approximately $34.1 million for the same period in 2006. The decrease in net cash used in investing activities related to purchases of fixed assets of $6.8 million during 2006 for the Durant facility, and a decrease of $22.8 million related to investments and advances related to letters of intent and investments the company has entered into to own and operate biodiesel and ethanol facilities during 2006. Net cash provided by financing activities was $22.1 million for nine months ended Sept. 30, 2007, compared to net cash provided by financing activities of approximately $47.9 million for the same period in 2006. Cash flows provided by financing activities during nine months ended Sept. 30, 2007, relate primarily to new credit facilities totaling $30 million, less the repayment of prior debts of $9.4 million. Settlement Agreement with Creditors On Nov. 14, 2007, Earth Biofuels Inc. negotiated and executed a settlement agreement with the group of creditors who had petitioned for an involuntary bankruptcy against the company on July 11 of this year. The agreement requires the creditors to dismiss their petition of bankruptcy. Under the terms of the agreement, the company will grant certain security interests to the creditors and will execute a restructuring plan within 120 days. As reported in the Troubled Company Reporter on Nov. 22, 2007, Bill Rochelle of Bloomberg News reports that a hearing has been scheduled for Dec. 10, 2007. Going Concern Doubt As reported in the Troubled Company Reporter on May 24, 2007, Malone & Bailey P.C., in Houston, Texas, expressed substantial doubt about Earth Biofuels Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses and working capital deficit. About Earth Biofuels Headquartered in Dallas, Texas, Earth Biofuels Inc. -- http://www.earthbiofuels.com/-- (OTC BB: EBOF) engages in the production, distribution, and sale of renewable fuels, with a focus on biodiesel fuel, in the United States. The company produces pure biodiesel fuel (B100) through the utilization of vegetable oils, such as soy and canola oil as raw material. The company distributes petroleum/biodiesel blended fuel, such as B20 through wholesale distributors, truck stops, and fueling stations. Earth Biofuels also produces and markets liquefied natural gas. On July 11, 2007, five creditors with claims of around $33 million filed an involuntary chapter 7 petition against the company (Bankr. D. Del. Case. No. 07-10928). Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the petitioners. A hearing to consider approval of an interim settlement agreement entered into by the company and its creditors is set for Dec. 10, 2007. The agreement provides for the dismissal of the involuntary chapter 7 petition in exchange for the Debtor admitting its liability under a $52 million loan. EXPRESS FINANCIAL: Case Summary & 40 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Express Financial Services, Inc. Nine Parkway Center, Suite 275 875 Greentree Road Pittsburgh, PA 15220 Bankruptcy Case No.: 07-27374 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Express Title Services of Ohio, Inc. 07-27377 Type of Business: The Debtors provide title insurance, appraisal and settlement service. See http://www.efstitle.com/common/about.asp Chapter 11 Petition Date: November 21, 2007 Court: Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Paul J. Cordaro, Esq. Campbell & Levine LLC 1700 Grant Building Pittsburgh, PA 15219 Tel: (412) 261-0310 Fax: (412) 261-5066 Estimated Assets Estimated Debts ---------------- --------------- Express Financial $1 Million to $1 Million to Services, Inc. $100 Million $100 Million Express Title Services Less than $10,000 $50,000 to of Ohio, Inc. $100,000 A. Express Financial Services, Inc.'s list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Morton H. Lowe Stock Redemption $800,000 1300 Bower Hill Road Claim Apartment 1401 Pittsburgh, PA 15243 Stewart Title Guaranty Company Title Premium $132,230 1980 Post Oak Boulevard Suite 800 Houston, TX 77056 Greentree Parkway Associates Trade Creditor $104,908 875 Greentree Road Seven Parkway Center, Suite 750 Pittsburgh, PA 15220 Kramer, Thompson & Associates Accounting Services $91,979 AT&T Trade Creditor $77,498 Countrywide Title & Settlement Trade Creditor $56,268 Fed-Ex Trade Creditor $55,292 UPS Trade Creditor $36,651 McNamee Hosea Trade Creditor $29,894 CBRE ITF 51 Trade Creditor $28,261 Duane Morris Trade Creditor $27,697 Office Depot Trade Creditor $27,244 Alacrity Appraisal Associates Trade Creditor $25,975 Chesterbrook Partners Trade Creditor $24,622 Orion Appraisal and Trade Creditor $23,005 Management Services First American Title Trade Creditor $22,924 Insurance Co. Liberty Property Trade Creditor $22,634 Hoffman Appraisal Services Inc. Trade Creditor $22,265 Blue Edge, Inc. Trade Creditor $22,025 Brian A. Cohee Trade Creditor $21,945 B. Express Title Services of Ohio, Inc.'s list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Triangle Real Estate Trade Creditor $17,120 Services, Inc. 470 Olde Worthington Road Suite 100 Westerville, OH 43082 Stewart Title Guarantee Co. Title Premium $10,800 1980 Post Oak Boulevard Suite 800 Houston, TX 77056 Kramer, Thompson & Associates Accounting Services $10,270 Nine Parkway Center, Suite 275 875 Greentree Road Pittsburgh, PA 15220 Byers Research Trade Creditor $6,173 Biela Title Services, LLC Trade Creditor $5,562 HUB Properties Trust Trade Creditor $4,935 Iron Mountain Trade Creditor $4,899 Records Management AT&T Trade Creditor $4,447 DHL Express (USA) Inc. Trade Creditor $4,272 George Pritsolas Trade Creditor $3,966 Beate Graves Trade Creditor $2,491 Fed-Ex Trade Creditor $2,385 BRM Trade Creditor $1,730 Swift Closing Services Trade Creditor $1,515 Office Depot Trade Creditor $1,275 Reinhardt & Associates, Inc. Trade Creditor $1,168 Darrin Sacket Trade Creditor $1,100 Century Business Graphics Trade Creditor $1,098 JLK Exams Trade Creditor $1,076 Accelerated Abstract Trade Creditor $1,025 FASHION HOUSE: Sept. 30 Balance Sheet Upside-Down by $16.1 Million ------------------------------------------------------------------ The Fashion House Holdings Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $3.5 million in total assets and $19.6 million in total liabilities, resulting in a $16.1 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $3.1 million in total current assets available to pay $15.6 million in total current liabilities. The company reported a net loss of $4.0 million on net sales of $1.8 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.7 million on net sales of $3.3 million in the same period in 2006. The net sales decrease was primarily attributable to late product deliveries from the company's overseas factories. The late deliveries were caused by late payments to the factories due to the company's continuing cash flow issues. The increase in net loss was primarily as a result of accounting for derivatives. 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?25a9 Going Concern Doubt As reported in the Troubled Company Reporter on April 23, 2007, KMJ Corbin & Company LLP, in Irvine, California, expressed substantial doubt about about The Fashion Holdings Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statemenets for the year ended Dec. 31, 2006. The auditing firm reported that the company has incurred recurring losses and has a working capital deficit of $5,187,040. About Fashion House Headquartered in Los Angeles, The Fashion House Holdings Inc. (OTC BB: FHHI) -- http://www.thefashionhouseinc.com/-- designs, develops, and markets a diversified selection of women's dress and casual fashion footwear. The company's licensed brands include Richard Tyler Couture, Tyler Richard Tyler, Oscar by Oscar de la Renta and O Oscar by Oscar de la Renta. FEDERAL-MOGUL: To Issue $305,236,000 in Senior Notes ---------------------------------------------------- Pursuant to the requirements of the Trust Indenture Act of 1939, Federal-Mogul Corp. discloses in a regulatory filing with the U.S. Securities and Exchange Commission that it intends to issue certain Senior Subordinated Third Priority Secured Notes due 2018 on the Effective Date of the Fourth Amended Joint Plan of Reorganization. Federal-Mogul anticipates exiting from bankruptcy in December 2007. Reorganized Federal-Mogul plans to initially issue $305,236,000 in Notes under the Fourth Amended Plan, Federal-Mogul Corp. Senior Vice President and General Counsel Robert L. Katz relates. The Notes will be issued under an indenture among Reorganized Federal-Mogul, certain guarantors, and U.S. Bank National Association, as trustee, Mr. Katz says. A full-text copy of the form of Indenture is available for free at the Securities and Exchange Commission at: http://ResearchArchives.com/t/s?25ba Among the Indenture Guarantors are these Debtors: * Carter Automotive Company, Inc. * F-M UK Holding Limited * Federal-Mogul Dutch Holdings Inc. * Federal-Mogul FAP Inc. * Federal-Mogul FX, Inc. * Federal-Mogul Global B.V. * Federal-Mogul Global Inc. * Federal-Mogul Global Properties, Inc. * Federal-Mogul Growth B.V. * Federal-Mogul Ignition Company * Federal-Mogul Mystic, Inc. * Federal-Mogul Piston Rings, Inc. * Federal-Mogul Powertrain, Inc. * Federal-Mogul Products, Inc. * Federal-Mogul Technical Center, LLC * Federal-Mogul U.K. Holdings Inc. * Federal-Mogul Venture Corporation * Federal-Mogul World Wide, Inc. * Felt Products Mfg. Co. * Ferodo America, Inc. * Ferodo Holdings Inc. * Gasket Holdings Inc. * McCord Sealing, Inc. * T&N Industries Inc. Pursuant to the Plan, holders of Allowed Bank Claims and Allowed Surety Claims will receive the Notes in partial satisfaction of their claims. The Notes will be executed on behalf of Federal-Mogul by two officers or an officer and an assistant secretary. A Note will be valid only if the Trustee manually signs the certificate of authentication on the Note, Mr. Katz clarifies. If an Officer whose signature is on a Note no longer holds that office at the time the Trustee authenticates the Note or at any time thereafter, the Note will be valid nevertheless, Mr. Katz says. Federal-Mogul, Mr. Katz adds, will not receive any proceeds from the issuance of the Notes because the Notes will be issued as part of an exchange, as provided in the Plan. The Debtors aver that the issuance of the Notes is exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 1145(a)(1) of the Bankruptcy Code. Outstanding Capital Securities As of October 31, 2007, Federal-Mogul's authorized and outstanding capital stock and debt securities are at these amounts: Title of Class Amount Authorized Amount Outstanding -------------- ----------------- ------------------ Common Stock 260,000,000 shares 89,496,493 shares Series C ESOP Convertible Preferred Stock 1,000,000 shares 439,937 shares Notes due 2004 (7.5% issued in 1998) $250,000,000 $239,800,000 Notes due 2006 (7.75% issued in 1998) $400,000,000 $391,900,000 Notes due 2006 (7.375% issued in 1999) $400,000,000 $394,000,000 Notes due 2009 (7.5% issued in 1999) $600,000,000 $562,200,000 Notes due 2010 (7.875% issued in 1998) $350,000,000 $340,400,000 Medium-Term Notes due between 2002 & 2005 (average rate of 8.8% issued in 1994 & 1995) $84,000,000 $84,000,000 Senior Notes due 2007 (8.8% issued in 1997 $125,000,000 $103,300,000 7.0% Convertible Junior Subordinated Debentures $575,000,000 $74,300,000 According to Mr. Katz, Reorganized Federal-Mogul will have capital stock and debt securities authorized and outstanding at these amounts as of the Effective Date: Title of Class Amount Authorized Amount Outstanding -------------- ----------------- ------------------ Class A Common Stock par value $0.01 400,000,000 shares 49,900,000 shares Class B Common Stock par value $0.01 50,100,000 shares 50,100,000 shares Preferred Stock par value $0.01 90,000,000 shares - Senior Subordinated Third Priority Secured Notes due 2018 $305,236,000 $305,236,000 About Federal-Mogul Based in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company with worldwide revenue of some $6 billion. Federal-Mogul also has operations in Mexico and the Asia Pacific Region, which includes, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Bankruptcy Court confirmed the Fourth Amended Plan on Nov. 8, 2007. On Nov. 13, 2007, the Bankruptcy Court's confirmation of the Fourth Amended Plan was affirmed by the District Court. (Federal-Mogul Bankruptcy News, Issue No. 154; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). FEDERAL-MOGUL: Thornwood to Own 25% of Reorganized Debtors' Stock ----------------------------------------------------------------- On the Effective Date of Federal-Mogul Corp. and its debtor- affiliates' Fourth Amended Joint Plan of Reorganization, existing voting securities of will be canceled. As set forth in the Plan, Reorganized Federal-Mogul will issue, on the Effective Date, new Class A Common Stock, new Class B Common Stock and $305,236,000 in Senior Subordinated Third Priority Secured Notes due 2018 pursuant to an indenture. Voting securities in Reorganized Federal-Mogul will consist of the New Common Stock. The Fourth Amended Plan provides that a trust for the benefit of the holders of Asbestos Personal Injury Claims will receive 50.1% of the shares of Common Stock to be issued by Reorganized Federal-Mogul. The remaining shares will be distributed pro rata to holders of Allowed Noteholder Claims, Allowed Convertible Subordinated Debenture Claims, and Allowed Class H Unsecured Claims against the U.S. Debtors. There are no persons owning 10% or more of Federal-Mogul's voting securities as of November 20, 2007, Federal-Mogul Corp. Senior Vice President and General Counsel Robert L. Katz discloses in a regulatory filing with the Securities and Exchange Commission. However, the Debtors anticipate that on the Effective Date, Thornwood Associates Limited Partnership and the Asbestos Personal Injury Trust will own more than 10% of Reorganized Federal-Mogul's voting securities: Percentage of Total Voting Entity Class Ownership Securities Owned ------ --------------- ---------------- Asbestos PI Trust $50,100,000 in Class B Common Stock 50.1% Thornwood $25,898,100 in Class A Common Stock 25.9% Dependent upon the occurrence of certain conditions, the Plan grants Thornwood two options to acquire additional shares of Class B Common Stock. If exercised by Thornwood, the Options will reduce the Trust's ownership of voting securities to zero, Mr. Katz notes. Thornwood is a Delaware limited partnership, the general partner of which is Barberry Corp., the sole shareholder of which is Carl Icahn, an individual. Thornwood is headquartered at 445 Hamilton Avenue, Suite 1210, in White Plains, New York. About Federal-Mogul Based in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company with worldwide revenue of some $6 billion. Federal-Mogul also has operations in Mexico and the Asia Pacific Region, which includes, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Bankruptcy Court confirmed the Fourth Amended Plan on Nov. 8, 2007. On Nov. 13, 2007, the Bankruptcy Court's confirmation of the Fourth Amended Plan was affirmed by the District Court. (Federal-Mogul Bankruptcy News, Issue No. 154; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). GLO-TEX INTERNATIONAL: Involuntary Chapter 11 Case Summary ---------------------------------------------------------- Alleged Debtor: Glo-Tex International, Inc. aka Glo-Tex Chemical 25 Stan Oerkins Road Spartanburg, SC 29307 Case Number: 07-06449 Type of Business: The Debtor is a specialty chemical company committed to providing quality solutions to global companies through innovative chemistry and service. See http://www.glotex.com/ Involuntary Petition Date: November 21, 2007 Court: District of South Carolina (Spartanburg) Judge: John E. Waites Petitioner's Counsel: Randy A. Skinner, Esq. Skinner and Associates Law Firm, L.L.C. P.O. Box 1843 Greenville, SC 29602 Tel: (864) 232-2007 Fax: (864) 232-8496 Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Crescent Bay Builders, L.L.C. labor and materials $1,004,081 110 Edgeworth Street Greenville, SC 29607 Delta Electrical Contractors labor and materials $662,511 of South Carolina, Inc. 600 Apple Valley Road Duncan, SC 29334 Southland Steel Erectors, labor and materials $483,717 Inc. P.O. Box 967 Greer, SC 29652 IONICA PLC: Plan Supervisors To Pay Dividend on November 30 ----------------------------------------------------------- The scheme supervisors of Ionica Plc's Scheme of Arrangement intend to pay a dividend of 1.115 pence in sterling pounds to satisfy the admitted claims against the Debtor. Dividends on the admitted scheme claims in respect of the holders of the 13-1/2% senior notes due 2006, and the 15% senior discount notes due 2007, will be paid to the indenture trustees, the Bank of New York, and HSBC Bank USA, N.A., respectively, on Nov. 30, 2007. Further information on the dividend pay-out can be obtained from: Julle Altken A J Kett Joint Scheme Supervisor Tel: +44 (0) 207 212-4862 About Ionica Plc Ionica Plc's parent company, Ionica Group Plc, provides telecommunication services in the U.K. Ionica Plc entered into administration on Oct. 29, 1998. The Debtor previously filed a complaint against its parent group, Ionica Group PLC. At that time, the company's unsecured creditors were owed at least GBP220 million. The company filed for Chapter 11 protection on Dec. 11, 1998, with the U.S. Bankruptcy Court for the Southern District of New York, since most of its creditors are located in the U.S. JOAN FABRICS: Court Converts Bankruptcy Case to Chapter 7 --------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware converted the chapter 11 case of Joan Fabrics Corporation and Madison Avenue Designs LLC, to chapter 7 liquidation, The Associated Press reports. The Debtors asked for the conversion after being barred from using their lenders' cash collateral subsequent to an Oct. 28, 2007 expiration date, AP relates, citing court documents. Presently, the Debtors hold about $2.88 million cash, AP notes. Under chapter 7, AP relates, the Debtors will be able to mitigate administrative expenses. Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl Young Jones & Wein represent the Debtors in their restructuring efforts. Bradford J. Sandler, Esq., at Benesch Friedlander Coplan & Aronoff and David A. Matthews, Esq., at Shumaker, Loop & Kendrick, LLP represent the Official Committee of Unsecured Creditors. The Debtors' exclusive period to file a plan expired on Aug. 8, 2007. The Debtors' schedules of assets and liabilities disclose total assets of $48,896,091 and total debts of $80,190,872. JOHN FRANCIS QUINN: Chapter 15 Petition Summary ----------------------------------------------- Petitioner: Hardie & Kelly, Inc. 206, 5800 2nd Street Southwest Calgary, AB T2H0H2 CANADA Debtor: John Francis Quinn Calgary, Alberta, Canada Case No.: 07-11346 Type of Business: The Debtor is a dependent adult. Dawn T. Quinn is his only surviving child, his court-appointed guardian and sole beneficiary of his estate. On April 23, 2007, Hardie & Kelly, Inc. was appointed as the Debtor's receiver and manager without security. Chapter 15 Petition Date: November 21, 2007 Court: Middle District of Florida (Tampa) Petitioner's Counsel: W. Gregory Golson 1724 East 5th Avenue Tampa, FL 33605 Tel: (813) 241-0900 Fax: (813) 241-0910 Estimated Assets: Unstated Estimated Debts: Unstated JOYCE DON ASSOCIATES: Court Approves Wolff Hill as Attorney ----------------------------------------------------------- Joyce Don & Associates Inc. obtained authority from the United States Bankruptcy Court for the Middle District of Florida to employ Wolff, Hill, McFarlin & Herron P.A. as its attorney. Wolff Hill is expected to: i) advise and counsel the debtor-in-possession concerning the operations of its business in compliance with Chapter 11 and orders of the Court; ii) defend any causes of action of behalf of the debtr-in- possession; iii) prepare, on behalf of the debtor-in-possession, all necessary applications, motions, reports, and other legal papers in the Chapter 11 case; iv) assist in the formulation of a plan of reorganization and preparation of a disclosure statement; v) provide all services of a legal nature in the field of bankruptcy law. The Debtor tells the Court that Narcarta Holding, a company owned by Donna R. Daniels and Osmond Decouteau, stockholders of the Debtor, paid $5,000 to the firm. Document filed with the Court did not disclose the firm's compensation rates for this engagement. David R. McFarlin, Esq., an attorney of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Based in Orlando, Florida, Joyce, Don & Associates, Inc., filed for chapter 11 protection on Oct. 11, 2007 (Bankr. M.D. Fla. Case No. 07-04878). When the Debtor filed for protection from its creditors, it listed total assets of $18 million and total debts of $78 million. LAFAYETTE NEIGHBORHOOD: Wants Court Permission to Sell Four Lots ---------------------------------------------------------------- Lafayette Neighborhood Housing Services asks the U.S. Bankruptcy Court for the Northern District of Indiana for authority to sell four lots free and clear of liens. The lot at 105 Park Avenue, Belt Railway, Addn Lot 2, Block 14 will be bought by Mark and Krista Cory for $66,000. The lot at 2011 Hall Street, Monon, Addn Lot 183 will be bought by Deborah Bradford for $45,000. The lot at 715 South, 28th Street, Belt Railway, Addn Lot 19, Block 42 will be bought by IQ Homes for $31,000. The lot at 807 South, 29th Street will also be bought by IQ Homes for $51,000. The Debtor informs the Court that only lien on the real estate is judgment in favor of Salin Bank entered July 17, 2007. The Debtors also relates that it will hold in a segregated account the proceeds of the sale, less closing expenses and broker's fee, subject to further Court order. The Debtor assure the Court that the four buyers are non-insiders and that the purchase prices for the properties are fair. The Debtor adds that it does not require the real properties being sold for an effective reorganization. Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LAFAYETTE NEIGHBORHOOD: Wants to Hire Kim Davis as Broker --------------------------------------------------------- Lafayette Neighborhood Housing Services asks the U.S. Bankruptcy Court for the Northern District of Indiana for authority to employ Kim Davis as its broker in the sale of four lots. Mr. Davis will receive 6% commission for the sale. The Debtor informs the Court that it already has a contract to sell the real properties to various non-insiders for purchase prices ranging from $31,000 to $66,000 per lot. The Debtor relates that Kim Davis has served on the board of Lafayette Neighborhood Housing Services without compensation. Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LAFAYETTE NEIGHBORHOOD: U.S. Trustee Forms Seven-Member Committee ----------------------------------------------------------------- Nancy J. Gargula, the United States Trustee for Region 10 appointed seven members to the Official Committee of Unsecured Creditors in the bankruptcy case of Lafayette Neighborhood Housing Services. The creditor members are: 1. Tim Gray - Acting Committee Chair Grasshopper's Lawn Care Service, Inc. 15 S. 30th St. Lafayette, IN 47904 Tel: (765) 446-8212 2. George Kygler Let George Do It! 8431 W. 6505 West Point, IN 47992 Tel: (765) 572-2728 3. Richard Pendleton Pendleton Heating and A/C of Lafayette 64235 300 E. Lafayette, IN 47909 Tel: (765) 474-2604 4. Rob Griffith Griffith Group, Inc. 703 Widewater Dr. Lafayette, IN 47904 Tel: (765) 742-3225 5. Mike Cummings MC Services 12453 W. Poplar Hills Dr. Monticello, IN 47960 Tel: (574) 870-2142 6. Rachel Bandy A Clean Touch 1109 Wells St. Lafayette, IN 47905 Tel: (765) 477-6758 7. Glen Vick Journal and Courier 217 W. 6th St. Lafayette, IN 47901 Tel: (765) 420-5282 Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LEVITT AND SONS: Court Okays AP Services as Crisis Managers ----------------------------------------------------------- The Honorable Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida approved, on an interim basis, the employment of AP Services, LLC, to provide interim management and restructuring services to the Debtors, nunc pro tunc to the Debtors' bankruptcy filing. If no objection is timely filed by Dec. 4, 2007, the order will become final for all purposes, and the application approved in all respects. In addition, the Debtors designated Lawrence E. Young as chief restructuring officer, and appointed John Dischner as executive vice president to the Debtors. Seth Wise, the Debtors' president, told the Court that Messrs. Young and Dreschner have over 15, and 10, years of experience in crisis management and business reorganizations, and have demonstrated expertise assisting companies with financial restructurings, operational improvement plans and cash management. APS is expected to provide restructuring management services, including providing Mr. Young to serve as CRO and Mr. Dischner to serve as EVP. APS will also: -- assist the Debtors in evaluating and implementing strategic and tactical options through the restructuring process; -- provide certain additional temporary staff to assist the Debtors in their restructuring efforts; -- assist with the preparation of the statement of financial affairs, schedules and other regular reports required by the Bankruptcy Code or the Court or which are customarily issued by the chief financial officer; -- assist in preparing for and filing of bankruptcy cases for the Debtors, coordinating and providing administrative support for the cases and developing a plan of reorganization or other appropriate case resolution, if necessary; and -- management of the claim and claim reconciliation processes. APS and Messrs. Young and Dischner will be paid in accordance to the firm's hourly rates, subject to changes: Professionals Hourly Rates ------------- ------------ Lawrence Young, Esq. $725 John Dischner, Esq. $575 Michelle Campbell, Esq. $550 Barry Folse, Esq. $700 Drew Lockard, Esq. $420 Pat Murray, Esq. $350 Jason Kilpela, Esq. $350 Colin Keenan, Esq. $350 Omar Zaidi, Esq. $350 Michelle Smith, Esq. $350 APS has received a $1,500,000 retainer from the Debtors, to be applied against fees and expenses in the Debtors' Chapter 11 cases. If APS wants to augment its professional staff with independent contractors, it will file, and require the Independent Contractor to file, 2014 affidavits indicating that the Independent Contractor has reviewed the list of the interested parties in the Debtors' Chapter 11 cases. The Independent Contractor must remain disinterested during the time APS is involved in providing services on behalf of the Debtors, and represent that he will not work for the Debtors or other interested parties during the time APS is involved in providing services to the Debtors. Mr. Wise noted that it is APS' standard practice to charge for an Independent Contractor's services at the APS' rate for an employee of comparable skill and experience, which rate typically exceeds the compensation provided by APS to the Independent Contractor. APS employees serving as officers of the Debtors, including the CRO and EVP, will be entitled to receive whatever indemnities are made available, during the term of ASP's engagement, to other -- non-APS affiliated -- officers of the Debtors. Nonetheless, Mr. Young ascertained that the firm holds no adverse interest as to matter for which it has been employed by the Debtors. About Levitt and Sons Based in Fort Lauderdale, Florida, Levitt and Sons LLC -- http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. -- http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States. The company operates in two divisions, homebuilding and land. The homebuilding division primarily develops single and multi-family homes for adults and families in Florida, Georgia, Tennessee, and South Carolina. The land division engages in the development of master-planned communities in Florida and South Carolina. Levitt and Sons LLC and 38 of its homebuilding affiliates filed for Chapter 11 protection on Nov. 9, 2007 (Bankr. S.D. Fla. Lead Case No. 07-19845). Paul Singerman, Esq. and Jordi Guso, Esq., at Berger Singerman, P.A., represent the Debtors in their restructuring efforts. The Debtors chose AP Services, LLC as their crisis managers, and Kurtzman Carson Consultants, LLC as their claims and noticing agent. Levitt Corp., the Debtors' parent company, did not file for Chapter 11 protection. The Debtors' latest consolidated financial condition as of Sept. 30, 2007 reflect total assets of $900,392,000, and total liabilities of $780,969,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 8, 2008. (Levitt and Sons Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). LEVITT AND SONS: Gets Court OK to Close On Pre-Bankr. Home Sales ---------------------------------------------------------------- Levitt and Sons LLC and its debtor-affiliates obtained authority from the Honorable Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida to close on certain pre- bankruptcy home sale contracts. The Debtors are authorized, but not directed to: -- close on sales of encumbered homes once construction is finished and all other requirements are met; -- honor certain existing pre-bankruptcy contract obligations to homebuyers and others, including payment of commissions due t