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/raid1/www/Hosts/bankrupt/TCR_Public/071128.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, November 28, 2007, Vol. 11, No. 282 Headlines 1755 AQUA: Wexford Balks at North Bay's Lift Stay Motion 1755 AQUA: Creditor Wants Minimum Bid Price Raised to $10 Million AFFILIATED COMPUTER: Board Authorizes $1 Bil. Share Repurchase AMERICAN AXLE: Paying $0.15 Per Share Cash Dividend on December 28 AMERICAN AXLE: Earns $13.1 Million in Third Quarter of 2007 AMERICAN HOME: Settles Prepetition Collections With ABN AMRO AMERICAN HOME: Hires Cadwalader Wickersham as Special Counsel AMERICAN HOME: Five Creditors Want to Foreclose More Properties ANWORTH MORTGAGE: Plans Public Offering of $9 Mil. Common Stock ASARCO: Parties Have Until Dec. 14 to Object to Discount Rate Plea ASARCO: Asbestos Liabilities Estimation Hearing to Start on Jan. 2 BANK REPO: Files Amended Schedules of Assets & Liabilities BIOJECT MEDICAL: PFG to Forbear Loan Payments Until June 2008 CAMARGO CORREA: Fitch Affirms 'BB' Issuer Default Rating CARDIMA INC: Sept. 30 Balance Sheet Upside-Down by $18.8 Million CHAMPION ENTERPRISES: To Close Alabama Manufacturing Facility CHARLES BRADLEY: Case Summary & 20 Largest Unsecured Creditors CHICAGO H&S: Court Gives Nod to Akin Gump as Co-Counsel CHICAGO H&S: Court Approves Perkins Coie as Co-Counsel CHICAGO H&S: U.S. Trustee Appoints Three-Member Creditors Panel CITY OF HOMESTEAD: Fitch Withdraws BB+ Rating on $79.88MM Bonds CITY OF HOMESTEAD: Fitch Rates $1.765MM Revenue Bonds at BB+ CORPUS CHRISTI: Section 341(a) Meeting Scheduled on December 12 CORPUS CHRISTI: Taps Thompson & Knight as Bankruptcy Counsel DANA CORPORATION: Wants Pact Resolving Appaloosa Dispute Approved DANA CORPORATION: Secures $2,000,000,000 Exit Financing DIASYS CORP: Posts $163,219 Net Loss in 3rd Quarter Ended Sept. 30 DPL CAPITAL: Moody's Lifts Securities Rating to Baa3 from Ba1 DURA AUTOMOTIVE: Obtains Overwhelming Creditor Support on Plan DUTCHMANS CREEK: Voluntary Chapter 11 Case Summary EMERGENCY MEDICAL: Earns $14.7 Million in Third Quarter 2007 ENERGYTEC INC: Posts $2.1 Million Net Loss in Third Quarter 2007 EQUIFIRST MORTGAGE: Fitch Rates $7.6MM Class B-1 Certs. at BB- EUROPEAN AMERICAN: U.S. Trustee Wants Case Trustee Appointed EUROPEAN AMERICAN: Court Removes Stay on AlliedBarton's Sublease FAIRPOINT COMM: Accepts Verizon's Pick for Board of Directors FIELDSTONE MORTGAGE: Loan Delinquencies Spurs Bankruptcy Filing FISHER COMMS: Posts $533,000 Net Loss in Third Quarter of 2007 FNBA MORTGAGE: Declining Credit Support Cues S&P to Cut Rating FORD MOTOR: Strike Continues Despite Initial Wage Agreement FORD MOTOR: Kentucky State Approves $60 Mil. Investment Incentives FREMONT HOME: Fitch Lowers Ratings on $51.1 Million Certificates GPS INDUSTRIES: Sept. 30 Balance Sheet Upside-Down by $1 Million GS MORTGAGE: Fitch Holds 'BB+' Rating on $534 Mil. Class L Certs. HALO TECHNOLOGY: Committee Hires Weiser LLP as Financial Advisor HALO TECHNOLOGY: Court Okays Morris Manning as Special Counsel HALO TECHNOLOGY: Hires David Rubin as Special Litigation Counsel HARRISBURG AUTHORITY: Defaults on $84 Million Retrofit Bond INTERACTIVE MOTOR: Sept. 30 Balance Sheet Upside-Down by $4.2 Mil. INVERNESS MEDICAL: Acquiring ParadigmHealth Inc. for $230 Million JAYS FOODS: $25,400,000 La Salle DIP Pact Gets Final Court Okay JOHNSON JUNCTION: Case Summary & 26 Largest Unsecured Creditors JUAN GARCIA: Case Summary & 4 Largest Unsecured Creditors KESSLER HOSPITAL: Court Confirms Chap. 11 Plan of Reorganization KING PHARMA: Posts $41 Million Net Loss in Third Quarter of 2007 LAFAYETTE NEIGHBORHOOD: Court Sets Pre-Trial Conference on Dec. 11 LAFAYETTE NEIGHBORHOOD: Excuse Motion Hearing Set for December 12 LAKE MARTIN: Section 341(a) Meeting Scheduled for December 6 LAKE MARTIN: Administrator Forms Six-Member Creditors Panel LAKE MARTIN: Files Schedules of Assets and Liabilities LEVITT AND SONS: Banking Parties Object to Cash Collateral Use LEVITT AND SONS: Wants to Deliver Release of Resale Restriction LEXINGTON RESOURCES: Sept. 30 Balance Sheet Upside-Down by $3.4 M. LUMINENT MORTGAGE: Has 60 Days to Cure Default on $90 Mil. Notes LUNA CRECIENTE: Voluntary Chapter 11 Case Summary MAGNITUDE INFO: Sept. 30 Balance Sheet Upside Down by $2,598,066 MERITAGE MORTGAGE: Fitch Puts 'B' Ratings on Two Cert. Classes METHANEX CORP: Finances $40 Million of GeoPark's Gas Exploration MORTGAGE ASSET: Fitch Junks Rating on Class M-6 Certificates MSB OF DESTIN: Case Summary & 20 Largest Unsecured Creditors NANOBAC PHARMA: Sept. 30 Balance Sheet Upside-Down by $2,158,289 NEW CENTURY: Fitch Holds 'BB' Rating on $5.4MM Class B-2 Certs. NORTHWEST PARKWAY: Fitch Withdraws Junk Rating on $431.8MM Bonds NRG ENERGY: Supplements Offers to Purchase $4.7BB of Senior Notes PARK PLACE: S&P Lowers Ratings on Six Certificate Classes PEOPLE'S CHOICE: Fitch Puts Low-B Ratings on Three Cert. Classes PERFORMANCE TRANSPORTATION: Taps Kurtzman Carson as Claims Agent PETRO ACQUISITIONS: Voluntary Chapter 11 Case Summary PETRO ACQUISTIONS: Committee Appointed in Gillespie & AFM's Cases PETRO ACQUISITIONS: Frost Brown Tapped as Counsel in Units' Cases QUAKER FABRIC: Want Until March 2008 to Remove Civil Actions QUALITY HOMES: Ch. 11 Trustee Taps Lewis Landau as Bankr. Counsel REABLE THERA: Completes $1.5 Billion Merger Deal with DJO Inc. RESIDENTIAL ASSET: S&P Junks Rating on S.2004-F Class B-5 Trust SALOMON BROTHERS: Fitch Holds 'B-' Ratings on Two Cert. Classes SAN HOLDINGS: Files Chapter 7 Bankruptcy Petition in Colorado SEQUOIA ALTERNATIVE: Moody's Cuts Rating on Class B-2 Loan to B1 SKILLSOFT PLC: Net Income Lowers to $6 Million in Third Quarter SOUNDVIEW HOME: Fitch Cuts Rating on $5.2 Million Certs. to B SOUNDVIEW HOME: High Delinqeuncy Cues Moody's to Cut Ratings STAGE DOOR: Case Summary & 12 Largest Unsecured Creditors STRUCTURED ADJUSTABLE: Moody's Cuts Rating on Class B6-I to B1 STRUCTURED ASSET: S&P Assigns Default Rating on Class B2 Certs. SUNTRUST ALTERNATIVE: Moody's Junks Rating on Class B-3 Loans TERWIN MORTGAGE: Fitch Downgrades Ratings on $9.4 Million Certs. TESORO CORP: Rights Plan Raises Concern from Tracinda Corp. TRADEX SWISS AG: Chapter 15 Petition Summary TRANSOCEAN INC: UK Regulators Clear Way for GlobalSantaFe Merger UBS MASTR: Fitch Cuts Rating on $3.4MM Class M-10 Certs. to BB WAMU COMMERCIAL: Fitch Affirms 'B-' Rating on $639,000 Certs. WETCO RESTAURANT: Court OKs Sale of 20 Locations for $5.5 Million WOLVERINE TUBE: To Halt Decatur and Booneville Plumbing Operations * Continued Poor Credit Leads Fitch to Initiate Formal Review * Moody's Takes Rating Actions on Various Transactions * Beard Group's Featured Conference for November 2007 * Drinker Biddle Fortifies with 13 Lawyers from Connelly Sheehan * Upcoming Meetings, Conferences and Seminar ********* 1755 AQUA: Wexford Balks at North Bay's Lift Stay Motion -------------------------------------------------------- Wexford High Yield Debt Fund I LLC, secured creditor of 1755 Aqua Vista II LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida to deny North Bay Village Investment Trust LLC's motion to lift the automatic stay of the Debtor or in the alternative dismiss the Debtor's case. According to Wexford, North Bay failed to satisfy the Phoenix Piccadily factors, and only established two of the six factors which are (a) the Debtor is a single real estate asset entity and (b) the assets are subject to foreclosure actions as a result of the Debtor's default on its obligations to its mortgages. Wexford expressed disagreement with North Bay's claim that the Debtor's chapter 11 filing is an attempt to abuse the judicial process and frustrate the legitimate efforts of the first and second mortgagees to enforce their rights. The Debtor's real estate property is encumbered with three mortgages: (a) first mortgage holder North Bay in the amount of $8,580,291, (b) second mortgage holder, Jeffrey Levitin, in the amount of $1,900,000, and (c) third mortgage holder, Wexford High, in the amount of $5,350,000. Wexford contends that North Bay's motive to lift the automatic stay of the Debtor and to dismiss its bankruptcy case is to foreclose on the assets without regard to the junior secured creditors, Mr. Levitin and Wexford, and the general unsecured creditors with an aggregate claim of more than $1.6 million based on the Debtor's list of top 20 unsecured creditors. Wexford contradicts North Bay's assertion that the Debtor's financial problems are nothing more than a dispute between North Bay and the Debtor since there are additional creditors with a stake in the Debtor's assets. Wexford continues that, "[al]though North Bay is a senior creditor, it is not the only creditor." Wexford believes that a sale under Section 363 of the Bankruptcy Code is the only shot the junior secured creditors, and if possible, general unsecured creditors, have of any recovery. In addition, Wexford states that the dismissal of the Debtor's case will deny its legitimate protections afforded in bankruptcy. While North Bay does not believe that the Debtor's filing is impermissible, Wexford states the Court's position that "[t]there is nothing inherently improper for a debtor with one asset to attempt to reorganize its affairs under the rehabilitative provision of the Code. "A planned liquidation of the Debtor's assets is equally not offensive" to the Code, according to Wexford. This claim is supported by the Debtor's motion to sell and its motion to retain an auctioneer. In this regard, Wexford requests the Court to deny North Bay's motion and to proceed with the state foreclosure action against the Debtor. Lawyers at Katten Muchin Rosenman LLP and Stearns Weaver Miller Weissler Alhadeff & Sitterson P.A. represent Wexford in this case. Debtor's Debt to Wexford On May 12, 2006, Mr. Eli Hadad, the Debtor's principal and managing member, executed a promissory note to Wexford promising to pay the sum of $2,350,000, plus interest at the rate of the lesser of 5% and the maximum interest rate allowed under Florida law. The note is secured by a mortgage in the name of Mr. Hadad, the Debtor and other related parties on the assets. In addition to the mortgage, Wexford acquired a first lien on and first priority perfected security interest in Mr. Hadad's interests in the Debtor. Also on May 12, the Debtor executed a guaranty of full and prompt payment of its obligations to Wexford. Pursuant to the terms of loan documents (note, mortgage, ownership pledge, and continuing guaranty), Mr. Hadad and the Debtor were obligated to make monthly payments due on the first of the beginning beginning June 1, 2006, through Nov. 12, 2006. Subsequently, Mr. Hadad and the Debtor defaulted in their obligations under the loan documents. An overleveraged debt structure and the downturn in the real estate market in South Florida precipitated the Debtor's financial collapse resulting in the Debtor's inability to pay its obligations. As of the Debtor's bankruptcy filing, Mr. Hadad and the Debtor owe Wexford in the principal amount of $2,350,000, plus accrued interest and costs. North Bay's Motion to Lift Stay The TCR also reported that North Bay, 1755 Aqua's single largest secured creditor, asked the Court to dismiss the chapter 11 bankruptcy case of the Debtor and remove its automatic stay alleging bad faith filing. The Debtor, according to North Bay, has nothing to reorganize, has no equity in property, is a single asset real estate with raw land only, and has no liability insurance on its property. North Bay points to the Debtor's parcel of land in North Bay Village, Florida with a market value of $9,408,955. 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). Scott Alan Orth, Esq. at The Law Offices of Scott Alan Orth, PA, represents the Debtor in its restructuring efforts. North Bay Village Investment Trust LLC, formerly Peninsula Bank, is the Debtor's largest secured creditor with an $8 million claim under a final judgment of mortgage foreclosure issued by the Miami-Dade Circuit Court. North Bay holds a first priority lien on the Debtor's real property. James B. Miller, Esq., is North Bay's counsel. The Debtor's schedules show total assets of $14,000,000 and total liabilities of $6,140,958. 1755 AQUA: Creditor Wants Minimum Bid Price Raised to $10 Million ----------------------------------------------------------------- Jeffrey Levitin, secured creditor and trustee to the mortgage claims of North Bay Village Investment Trust and Wexford High Yield Debt Fund I LLC, asks the U.S. Bankruptcy Court for the Southern District of Florida to deny 1755 Aqua Vista II LLC's motion to auction its assets for $8,000,000, or in the alternative, place a $10,000,000 minimum bid on the assets. Mr. Levitin relates that the Debtor's case is essentially a single asset consisting of a single piece of vacant land with a construction trailer located in Miami, Florida. Mr. Levitin adds that the real property is encumbered by three separate mortgages held by (a) first mortgage holder North Bay in the amount of $8,580,291, (b) second mortgage holder, Mr. Levitin, in the amount of $1,900,000, and (c) third mortgage holder, Wexford High, in the amount of $5,350,000. On information, Mr. Levitin says that the current fair market value of the real property does not exceed the mortgages and that two of the mortgages are in default. Mr. Levitin adds that the Debtor has allowed the real property to be compromised, placing the mortgages' collateral in jeopardy. Mr. Levitin tells the Court that the secured creditors are not adequately protected if the property is sold for less than $10,000,000. Stanley Dale Klett, Esq., at Rutherford Mulhall, PA represents Mr. Levitin. As reported in the Troubled Company Reporter on Nov. 27, 2007, 1755 Aqua asked the Court for permission to sell its real estate assets at an auction. The Debtor proposes that bidders may participate in the auction by depositing 5% of their bid and providing evidence of their financial wherewithal to close on a proposed sale. The proposed minimum initial bid will be $8,000,000. Overbids at the auction will be in $50,000 increments. Additionally, the Debtor proposes that the auction be scheduled the same day as the sale hearing. The Debtor also asked the Court for permission to employ Sheldon Good & Company Auctions Inc. as its real estate assets auctioneer. 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). Scott Alan Orth, Esq. at The Law Offices of Scott Alan Orth, PA, represents the Debtor in its restructuring efforts. North Bay Village Investment Trust LLC, formerly Peninsula Bank, is the Debtor's largest secured creditor with an $8 million claim under a final judgment of mortgage foreclosure issued by the Miami-Dade Circuit Court. North Bay holds a first priority lien on the Debtor's real property. James B. Miller, Esq., is North Bay's counsel. The Debtor's schedules show total assets of $14,000,000 and total liabilities of $6,140,958. AFFILIATED COMPUTER: Board Authorizes $1 Bil. Share Repurchase -------------------------------------------------------------- Affiliated Computer Services Inc.'s board of directors has endorsed a proposed $1 billion share repurchase program and has authorized the company to purchase up to $200 million of the company's Class A Common Stock, effective immediately, under the program. ACS management and the board will continually evaluate the timing of these share repurchases and will consider factors such as the company's cash and debt levels, the condition of the debt markets, alternative investment opportunities, and other business trends. Subject to its ongoing evaluation of these factors, the board anticipates authorizing additional share repurchases under the $1 billion share program. The company may purchase shares of Class A common stock from time to time in the open market or in privately negotiated transactions. In 2006 the company repurchased 27.2 million shares of Class A common stock at a cost of approximately $1.46 billion. Darwin Deason, chairman of the board of directors of the company, filed a notification under the Hart-Scott-Rodino Antitrust Improvements Act for the acquisition of up to an additional one million shares of the company's Class A common stock after expiration or termination of the waiting period under the Act. The company was notified that the waiting period under the Act has been terminated and that it is permissible for Mr. Deason to begin acquiring company shares. Any purchases of company shares by Mr. Deason, however, would be aggregated with shares repurchased by the company for purposes of calculating daily purchase volume limits applicable to the company and Mr. Deason. Therefore, in order to ensure that the company is able to execute the share repurchase program described above in the most effective manner for the benefit of shareholders, Mr. Deason has elected not to begin acquiring company shares at this time. 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 Affiliated Computer Services Inc. on CreditWatch with negative implications, where they were placed on March 20, 2007. AMERICAN AXLE: Paying $0.15 Per Share Cash Dividend on December 28 ------------------------------------------------------------------ American Axle & Manufacturing Holdings Inc. has declared a cash dividend of $0.15 per share payable on Dec. 28, 2007, to stockholders of record on all of the company's issued and outstanding common stock as of Dec. 7, 2007. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * Moody's Investors Service recently affirmed American Axle & Manufacturing Holdings Inc.'s Corporate Family rating of Ba3 as well as the senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. AMERICAN AXLE: Earns $13.1 Million in Third Quarter of 2007 ----------------------------------------------------------- American Axle & Manufacturing Holdings Inc. reported sales and earnings for the third quarter of 2007. American Axle's net earnings in the third quarter of 2007 were $13.1 million. This compares to a net loss of $62.9 million in the third quarter of 2006. American Axle's earnings in the third quarter of 2007 reflect the impact of special charges and other non-recurring operating costs of $7.8 million, primarily related to the redeployment of machinery and equipment and other actions to rationalize underutilized capacity. Also included in this total were charges of $2.7 million, associated with a voluntary separation program offered to hourly associates represented by the UAW at American Axle's Buffalo Gear, Axle & Linkage facility in Buffalo, New York. American Axle's earnings in the third quarter of 2007 also reflect the impact of a work stoppage experienced by its largest customer, GM, during the last week of September. American Axle estimates the impact of lost sales and other costs and expenses related to this work stoppage to be approximately $2.8 million in the third quarter of 2007. American Axle's earnings in the third quarter of 2006 included a special charge of $91.2 million related to the supplemental unemployment benefits estimated to be payable to UAW associates who were expected to be permanently idled through the end of the current contract period in February 2008. American Axle also recorded a $1.9 million special charge in the third quarter of 2006 related to estimated postemployment costs for associates at its European operations. "In the third quarter of 2007, American Axle continued to achieve solid gains in productivity and made steady progress on its ongoing structural cost-reduction initiatives," said American Axle's Co-Founder, Chairman of the Board & Chief Executive Officer Richard E. Dauch. "American Axle will continue to take the necessary actions to achieve sustainable market cost competitiveness in our global operations. This includes a strategic emphasis on improving American Axle's manufacturing capacity utilization and jointly developing new innovative labor agreements to enhance American Axle's operating efficiency and flexibility." Net sales in the third quarter of 2007 were $774.3 million as compared to $701.2 million in the third quarter of 2006. Customer production volumes for the full-size truck and SUV programs American Axle currently supports for General Motors and Chrysler were approximately the same as compared to the prior year. American Axle estimates that customer production volumes for its mid-sized truck and SUV programs increased approximately 25% in the quarter on a year-over-year basis. Non-GM sales represented approximately 24% of American Axle's total sales in the third quarter of 2007. Net sales in the first three quarters of 2007 were $2.5 billion, as compared to $2.4 billion in the first three quarters of 2006. Gross margin was 11.2% in the first three quarters of 2007 as compared to 3.8% for the first three quarters of 2006. Operating income for the first three quarters of 2007 was $123.5 million or 5.0% of sales as compared to an operating loss of $54.5 million or negative 2.3% of sales for the first three quarters of 2006. At Sept. 30, 2007, the company's balance sheet showed total assets of $3.0 billion and total liabilities of $2.1 billion, resulting in a stockholders' equity of $872.4 million. Equity at Dec. 31, 2006, was $813.7 million. Headquartered in Detroit, Michigan, American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) -- http://www.aam.com/-- and its wholly owned subsidiary, American Axle & Manufacturing, Inc., manufactures, engineers, designs and validates driveline and drivetrain systems and related components and modules, chassis systems and metal-formed products for light trucks, sport utility vehicles and passenger cars. In addition to locations in the United States (in Michigan, New York and Ohio), the company also has offices or facilities in Brazil, China, Germany, India, Japan, Luxembourg, Mexico, Poland, South Korea and the United Kingdom. * * * Moody's Investors Service recently affirmed American Axle & Manufacturing Holdings Inc.'s Corporate Family rating of Ba3 as well as the senior unsecured rating of Ba3 to American Axle & Manufacturing Inc.'s notes and term loan. AMERICAN HOME: Settles Prepetition Collections With ABN AMRO ------------------------------------------------------------ American Home Mortgage Investment Corp. and certain of its debtor-affiliates and ABN AMRO Bank N.V. entered into a second stipulation for reconciliation of prepetition collections. Copies of the Reconciliation Stipulation and the reconciliation of other prepetition funds held in a construction loan lockbox account were provided to the Official Committee of Unsecured Creditors, Bank of America NA, and the Debtors' postpetition financing lender. Among the key terms of the second Court-approved Reconciliation Stipulation are: -- The Parties agree to a reconciliation of the prepetition collections aggregating $1,519,522, which may be transferred to the control account maintained by the Debtors for the benefit of ABN AMRO; and -- Nothing in the Reconciliation Stipulation modify, terminate or transfer the Debtors' rights to service or administer any mortgage loans and related activities. Previously, certain of the Debtors and ABN AMRO entered into a Court-approved stipulation to, among other things, permit, but not obligate, ABN AMRO to fund certain additional mortgagor advances by ABN MRA Debtors, and to authorize and direct ABN AMRO to make servicing payments to the Debtors for continued postpetition servicing of certain mortgage loans. The U.S. Bankruptcy Court for the District of Delaware's order approving the Advances Stipulation prohibited the use of any prepetition collections by the Debtors absent further order of the Court. The Debtors and ABN AMRO are parties to a Master Repurchase Agreement, in which the Debtors are the sellers and American Home Mortgage Servicing Inc. is the servicer and ABN is the buyer. The Debtors and ABN were also parties to a number of additional agreements related to the ABN MRA, including but not limited to: -- a Custodial Agreement; -- an Account Control Agreement; -- an Electronic Tracking Agreement; -- a Letter Agreement; and -- a Performance Guaranty. ABN stated that pursuant to the Agreements and during a five- month period prior to the Petition Date, ABN purchased from the Sellers approximately 430 mortgage loans for $222,000,000. The Loans are residential construction loans made by the Sellers to mortgagors who are constructing or renovating single-family homes. ABN asserted that as of July 31, 2007: (a) the Mortgagors owed approximately $145,000,000, in connection with advances made; (b) up to approximately $77,000,000 in additional advances were available to be drawn by the Mortgagors to fund the completion of the construction projects. Under the Agreements, the Debtors funded the Mortgagor Advances through the sale of the Mortgage Loans to ABN. Prior to the commencement of the bankruptcy cases, on August 1, 2007 and August 3, 2007, ABN delivered to the Debtors notices of events of default. ABN argued that it delivered a letter pursuant to which ABN consented to the Debtors' use of postpetition collection on a one-time basis for $355,668, to make additional Mortgagor Advances. In a Court-approved stipulation, the parties agreed that: -- the Debtors are authorized to make funding requests to ABN in the manner provide for in the Agreements for $32,000,000 to fund Additional Mortgagor Advances; -- all collections received by the Debtors on and after the Petition Date will be deposited into a "buyer account" or in a segregated Debtor-in-Possession account; -- the Debtors will account to ABN all collections received by any of the Sellers prior to the Petition Date; -- all Prepetition Date Collections in the possession of the Debtors will not be used by any of the Debtors for any purpose except pursuant to further order of the Court; -- ABN is authorized to provide funds, but has no obligation to do so, to Sellers for the Additional Mortgagor Advances and is authorized and directed to make servicing payments by: (a) written authorization to the Debtors to use postpetition collections to fund the Mortgagor Advances and Servicing Payments; or (b) in the event there are insufficient Postpetition Collections to fund the requested Mortgagor Advances or Servicing Payments, by making transfers of funds to the Debtors pursuant to all the terms and conditions of the Agreements; -- the ABN advances will be governed in all respects by the Agreements; -- the ABN advances are not and will never become a "property of the estate;" -- ABN will not, in respect of any ABN Advances or expenses incurred in connection with the transactions contemplated, assert: (a) an administrative or priority claim against any of the Debtors; and (b) a lien against or security interest in any property of any Debtor's estate which constitutes "Prepetition Collateral;" -- the Debtors are authorized to submit monthly requests to ABN for payment of ABN's pro-rata share of the budget and ABN will make servicing payments not exceeding 80 percent of the monthly budgeted amounts; and -- the Debtors will continue to provide ABN with reports on collections, Mortgagor Advances, and related matters in the same manner the Sellers accounted to ABN prior to the Petition Date in accordance with the Agreements. 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: Hires Cadwalader Wickersham as Special Counsel ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has approved the application of American Home Mortgage Investment Corp. and its debtor-affiliates to employ Cadwalader, Wickersham & Taft LLP as their special counsel on non- bankruptcy matters, nunc pro tunc to Aug. 6, 2007. The Court ruled that Cadwalader Wickersham will be employed as special counsel for these matters: -- from Aug. 6, 2007, through Sept. 26, 2007, non-bankruptcy transactional work with respect to the sale of the Debtors' loan servicing business; -- from Aug. 6, 2007, through Sept. 3, 2007, Debtors's representation in connection with the inquiry of the Securities and Exchange Commission; -- non-bankruptcy transactional work with respect to the sale of a non-debtor bank entity; and -- Debtors' representation in a prepetition litigation entitled American Home Mortgage Com. v. Union Federal Bank of Indianapolis. Judge Sontchi noted that Cadwalader is not authorized to represent the Debtors in connection with other litigation matters referenced in the application. He also said that the Debtors' application to employ Cadwalader in connection with the securities class action litigation matters is adjourned to a date to be determined by the Debtors in consultation with the U.S. Trustee and the Official Committee of Unsecured Creditors. Michael Strauss, the Debtors' chief executive officer, informed the Court that the Debtors will pay Cadwalader on an hourly basis, plus reimbursement of actual and necessary charges. Cadwalader's rates are subject to periodic adjustment to reflect economic and other conditions. Cadwalader's current hourly rates are: Partners $495 - $1,000 Attorney/Counsel $230 - $675 Legal Assistants $60 - $225 Mr. Strauss disclosed that Cadwalader has received approximately $3,700,000 for its prepetition services since Aug. 1, 2006. He further disclosed that, as of Aug. 6, 2007, Cadwalader was holding an advance retainer of approximately $1,000,000 for its services for the Debtors. The Retainer will be applied against postpetition fees and expenses as approved by the Court. Gregory M. Petrick, Esq., a member of Cadwalader, disclosed that the firm represented certain clients in mortgage purchase and other transactions with the Debtors, including Credit Suisse Securities (USA) LLC, JPMorgan Securities Inc., Merrill Lynch Global Markets, UBS Securities LLC, Natixis Capital Markets Inc., Morgan Stanley Co., Inc., Barclays Capital Inc., Goldman, Sachs & Co., and Citigroup Global Markets, Inc. However, he assures Judge Sontchi that Cadwalader does not hold or represent an interest that is adverse to the bankruptcy estate. 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: Five Creditors Want to Foreclose More Properties --------------------------------------------------------------- Five creditors of American Home Mortgage Investment Corp. and its debtor-affiliates separately ask the U.S. Bankruptcy Court for the District of Delaware to lift the automatic stay imposed under Section 362 of the Bankruptcy Code on several grounds, including defaults under certain notes and superior liens, in connection with certain parcel of real properties located at: -- 4 W. Oak Ave., in La Grange Park, Illinois 60526; -- 5 N 699 E Ridgewood Drive, in Saint Charles, Illinois 60175; -- 124 Lorraine Road, in Wheaton, Illinois 60187; -- 211 Cotton Ridge Lane A-D, in Spartanburg, South Carolina 29302; -- 633 Meadowbrook Road, in Uniondale, New York 11553; -- 3502 Taggett Lake Court, in Highland, Michigan 48357; -- 4940 W. Wabansia Ave., in Chicago, Illinois 60639; -- 6264 Golden Trails Avenue, in Rancho Cucamonga, California 91739; -- 8560 Queensway Blvd, #1503, in Myrtle Beach, South Carolina 29752. The five creditors, all of which are represented by Adam Hiller, Esq., at Draper & Goldberg, PLLC, in Wilmington, Delaware, are: (1) Aurora Loan Services LLC; (2) Countrywide Home Loans; (3) Lexington State Bank; (4) Mortgage Electronic Registration Systems c/o Aurora Loan Services, LLC (5) Wells Fargo Bank, N.A., as Trustee, c/o Countrywide Home Loans. Mr. Hiller relates that Aurora Loan, et al., are the current holder of the Properties' mortgages and notes. He adds that review of the Properties' titles shows that the Debtors may hold a lien junior to Aurora Loan, et al.'s senior mortgages. The obligors of the Properties are currently in default under the Notes, thus, Aurora Loan, et al., seek to exercise their non- bankruptcy rights and remedies with respect to the Notes, including the enforcement of their rights against the Mortgages, Mr. Hiller tells the Court. Because the Debtors' Junior Mortgages are subordinate to the Senior Mortgages, the Debtors have no equity in the Properties, Mr. Hiller says. In addition, because the Junior Mortgages add little or no value to the bankruptcy estates, the Properties are not necessary for the Debtors' reorganization, he tells the Court. Hence, Mr. Hiller contends, relief from the automatic stay is appropriate under Section 362(d)(2) of the Bankruptcy Code to permit Aurora Loan, et al., to exercise their rights and remedies with respect to the Mortgages. A continued stay of Aurora Loan, et al.'s action against the Obligors and the Properties will cause significant prejudice to them, Mr. Hiller notes. Therefore, he asserts, "cause" exists to terminate the automatic stay. Prior Foreclosure Approval The Court previously granted the requests, and terminated the automatic stay with respect to the Aurora Loan, et al.'s interests in the Debtors' properties. The Court permitted Aurora Loan, et al., to exercise their rights under applicable non-bankruptcy law against the Properties. In that previously approved foreclosure, six creditors separately sought foreclosure on these real properties located at: -- 215 Madison Street, in Oceanside, California 92057; -- 257 Creekside Drive, in Bolingbrook, Illinois 60440; -- 956 East 231st Street, in Bronx, New York 10462; -- 10373 Walnut Way, in Kelseyville, California 95451; -- 13490 Chivers Avenue, in Los Angeles, California 91342; -- 26529 Lido Drive, in Murrieta, California 92563; -- 29360 Gandolf Court, in Murrieta, California 92563; -- 8204 McClelland Pl., in Alexandria, Virginia 22309; and -- 8559 S. Escanaba Avenue, in Chicago, Illinois 60617. The six creditors were: (1) Aurora Loan Services LLC; (2) Bank of New York, as Trustee, c/o Countrywide Home Loans; (3) Countrywide Home Loans; (4) Federal National Mortgage Association c/o Aurora Loan Services, LLC; (5) Lehman Brothers LBB c/o Aurora Loan Services, LLC; and (6) Wells Fargo Bank, N.A., as Trustee, c/o Countrywide Home Loans. 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). ANWORTH MORTGAGE: Plans Public Offering of $9 Mil. Common Stock --------------------------------------------------------------- Anworth Mortgage Asset Corporation plans to make a public offering of 9 million shares of its common stock. Anworth has granted the underwriters an option, exercisable for 30 days, to purchase up to an additional 1,350,000 shares of common stock to cover over- allotments, if any. The net proceeds from the offering are expected to be approximately $60.5 million, or approximately $69.6 million if the underwriters' over-allotment option is exercised in full, and Anworth expects to use all of the net proceeds from this offering to acquire agency mortgage-backed securities. Deutsche Bank Securities Inc. is acting as sole book-runner and Friedman, Billings, Ramsey & Co., Inc., JMP Securities LLC and Sterne, Agee & Leach, Inc. are acting as co-managers. The offering will be made pursuant to Anworth's existing shelf registration statement filed with the Securities and Exchange Commission. The offering is made by means of a prospectus only which may be obtained from: Deutsche Bank Securities Inc. 4th Floor, No. 60 Wall Street New York, NY 10005. About Anworth Mortgage Asset Corporation Headquartered in Santa Monica, California, Anworth Mortgage Asset Corporation (NYSE:ANH) -- http://www.anworth.com/-- is a mortgage real estate investment trust which invests in mortgage assets, including mortgage pass-through certificates, collateralized mortgage obligations, mortgage loans and other real estate securities. Anworth generates income for distribution to shareholders primarily based on the difference between the yield on its mortgage assets and the cost of its borrowings. Through its subsidiary, Belvedere Trust Mortgage Corporation, Anworth also invests in high quality jumbo adjustable-rate mortgages and finances these loans though securitizations. * * * On Aug. 9, 10 and 17, 2007, Belvedere Trust Mortgage Corporation, the company's wholly owned subsidiary, received margin calls that it was unable to meet, resulting in defaults under certain repurchase agreements. The total amount of the repurchase agreement obligations relating to the defaults was approximately $139 million and the total arrearage is approximately $1.8 million as of Nov. 5, 2007. ASARCO: Parties Have Until Dec. 14 to Object to Discount Rate Plea ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Texas, at the request of ASARCO LLC and its debtor-affiliates, extended the deadline, until Dec. 14, 2007, for parties-in-interest to object to the Debtors' motion to determine the appropriate base year and discount rate to be applied to all Unsecured Future Claims. By filing the Discount Rate Motion, the Debtors seek to reduce the present value of future non-personal injury claims. The Debtors had asked the Court to establish a 7% discount rate to be applied to all Unsecured Future Claims to calculate the net present value as of its bankruptcy filing. The Debtors related that in order to obtain confirmation of a plan of reorganization, the Court must determine or estimate, among other things, the amount of the unsecured claims, including future asbestos, environmental, rejection damages, toxic tort, and other unsecured liabilities that will mature in the future. Tony M. Davis, Esq., at Baker Botts, L.L.P., in Houston, Texas, said that, in many instances, these liabilities will not mature for years or perhaps decades after the Debtors' bankruptcy filings and the effective date of any plan of reorganization. The Unsecured Future Claims subject to the Discount Rate Motion are limited to claims that are unsecured, non-priority, similarly situated, and that accrue or mature in the future. Mr. Davis noted that Section 502(b) of the Bankruptcy Code requires discounting Unsecured Future Claims to present value. Section 502(b) provides that the court "shall determine the amount of such claim in lawful currency of the United States as the date of the filing of the petition, and shall allow such claim in such amount . . ." Section 101(5), Mr. Davis further noted, operates to accelerate all unmatured claims against a debtor. Thus, creditors whose claims will not mature for many years are able to file a proof of claim that seeks payment of all amounts owed to them as of the Petition Date, even if those amounts are unmatured, he contends. Mr. Davis added that courts have recognized the need to discount Unsecured Future Claims to present value in a variety of bankruptcy related contexts like the discount rate used in future asbestos-related personal injury claims in In re Armstrong World Indus., Inc., 348 B.R. 111, 133(D. Del. 2006). To further the goal of equality of treatment, Mr. Davis asserted, a uniform discount rate must be used to calculate NPV of all future unsecured claims. The appropriate discount rate, he elaborates, is not determined on a case-by-case or claim-by-claim basis; instead, the same discount rate should be applied to the entire class of general unsecured claims. The Unsecured Future Claims subject to the Debtors' request does not include personal injury claims or personal injury asbestos "demands" that may be channeled to an asbestos trust pursuant to Section 524(g). Mr. Davis contended that future asbestos liabilities are of a completely different character. They are "similarly situated" and they do not constitute "claims" at all. Instead, Mr. Davis said they are described as "demands" by Section 524(g), which provides special guidelines for how these demands must be treated in a plan of reorganization. The 7% discount rate, according to Mr. Davis, is between the extremes of a "risk free investor" rate and a "speculative investor" rate. About ASARCO LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASARCO: Asbestos Liabilities Estimation Hearing to Start on Jan. 2 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Texas, at the request of ASARC Chief Judge Edith H. Jones of the U.S. Court of Appeals for the Fifth Circuit temporarily assigns Judge Elizabeth W. Magner of the U.S. Bankruptcy Court for the Eastern District of Louisiana to the Southern District of Texas to mediate the asbestos liabilities proceedings of ASARCO LLC. Judge Magner will remain in the Southern District of Texas until ASARCO's asbestos issues are resolved, Judge Jones says. On October 29 to 31, 2007, ASARCO, the Official Committee of Unsecured Creditors for the Asbestos Subsidiary Debtors, the Future Claims Representative, and other parties-in-interest attended a three-day initial mediation session in New Orleans before Judge Magner. The estimation hearing on ASARCO's asbestos liabilities will begin January 2, 2008. About ASARCO LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 60; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). BANK REPO: Files Amended Schedules of Assets & Liabilities ---------------------------------------------------------- Bank Repo Auto Inc. filed with the U.S. Bankruptcy Court for the Central District of California its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $ -0- $ -0- B. Personal Property 10,795,000 C. Property Claimed as Exempt D. Creditors Holding Secured Claims 811,647.73 E. Creditors Holding Unsecured Priority Claims 724,959.82 F. Creditors Holding Unsecured Non-priority Claims 314,512.73 ----------- ------------- TOTAL $10,795,000 $1,851,120.28 =========== ============= About Bank Repo Headquartered in Tarzana, California, Bank Repo Auto Inc. filed for Chapter 11 bankruptcy protection on Aug. 17, 2007 (Bankr. C.D. Calif. Case No. 07-12949). Joseph L. Pittera, Esq., in Torrance, Calif., represents the Debor in its restructuring efforts. When the company filed for protection from its creditors, it listed assets and debts between $1 million to $100 million. BIOJECT MEDICAL: PFG to Forbear Loan Payments Until June 2008 ------------------------------------------------------------- Bioject Medical Technologies Inc. has requested and entered into a forbearance agreement with Partners for Growth LP with respect to its outstanding term and convertible debt agreements. PFG has agreed to forbearance until no later than June 1, 2008, and has agreed not to declare an Event of Default or exercise other remedies under the PFG loans with respect to certain specified events. The company has agreed to pay down $550,000 of its revolving line of credit and to reprice PFG's convertible debt note and warrants to $0.90 per share. In addition, the company has entered into convertible debt financing with Mr. Ed Flynn, a private investor, who will be rejoining the board of directors. In addition to the funding provided by Mr. Flynn, Bioject's CEO and other executive officers and a member of the board are also participating in this round of funding. Pursuant to these agreements, the company has received or has commitments to receive an aggregate of $615,000. Mr. Flynn, a private investor and previous board member of Bioject, has provided additional funding to assist in moving the company forward as the new CEO pursues new opportunities. The funds will give Bioject financial strength to carry it into the next year, allowing Bioject to expand its needle-free technology with current collaborators as well as to seek new opportunities. In his willingness to rejoin the board, Mr. Flynn will add years of business experience and insight to Bioject's board. In addition, the financial support from the CEO and other executive officers and a member of the board indicates their commitment to make the company successful. "I am pleased to be once again an active participant of the Board of Directors and look forward to being involved in moving Bioject to the next level," said Mr. Flynn. "I have always supported the company and believe this technology brings future clinical advancements into use. With the increase in self injections at home and the need to remove needles as a possible spread of infectious disease, Bioject is positioned to address these issues and improve our health care system for everyone." "Mr. Ed Flynn has been a long time supporter, board member and advocate for Bioject and its needle-free injection therapy (NFIT) systems," Ralph Makar, president and CEO of Bioject, said. "We are very pleased to have Mr. Flynn rejoin our board of directors and we sincerely value his significant contributions and business expertise as we move Bioject to the next level." Nasdaq Deficiency Letters As anticipated, the company received Nasdaq Deficiency Letters on Nov. 15, 2007, and Nov. 19, 2007. The November 15 letter indicated that Bioject has failed to comply with stockholders' equity, market value of listed securities and net loss from continuing operations requirements for continued listing, as set forth in Marketplace Rules(s) 4310c(3). The November 19 letter indicated that Bioject has failed to comply with the minimum bid price requirement for continued listing set forth in Marketplace Rule 4310c(4) because for 30 consecutive trading days the bid price of Bioject's common stock has closed below the minimum $1.00 bid requirement. The Nov. 15, 2007, letter states that Bioject has until Nov. 30, 2007 to provide Nasdaq with a specific plan to achieve and sustain compliance with the Nasdaq Capital Market listing requirements. In the event the company is unable to deliver a plan acceptable to Nasdaq, Bioject would expect to receive notification that its securities will be delisted. At that time, the company has the option to appeal the Staff's decision to a Nasdaq Listing Qualifications Panel. The Nov. 19, 2007, letter states that Bioject will be provided 180 calendar days, or until May 19, 2008, to regain compliance with the minimum bid price requirement. If, at any time prior to May 19, 2008, the bid price of Bioject's common stock closes at $1 per share or more for a minimum of 10 consecutive business days, Nasdaq will notify Bioject that it is in compliance with the minimum bid requirement. "In anticipation of the financing requirements and the Nasdaq notification, the company took a proactive stance by raising capital and beginning to execute on our new customer-focused business strategy, which we believe will allow us to become compliant with the Nasdaq requirements," Mr. Makar said. "Bioject is currently discussing new opportunities with several new potential partners as well as current partners to expand its technology in new and exciting areas," Mr. Makar said. "The dose- sparing clinical studies that are currently under way should be finished and data available next year, which could present some exciting areas for expansion as well as new directions in the delivery of some vaccines. We are very optimistic about our future and are looking forward to a very productive next few years. We have made many positive changes this year in the company and feel we are well positioned to move forward with success in the near future." About Bioject Medical Technologies Headquartered in Portland, Oregon Bioject Medical Technologies Inc. (Nasdaq: BJCT) -- http://www.bioject.com/-- develops and manufactures needle-free drug delivery systems. The company focuses on developing mutually beneficial agreements with pharmaceutical, biotechnology, and veterinary companies. Going Concern Doubt On April 2, 2007, Moss Adams LLP, in Portland, Oregon, expressed substatial doubt about Bioject Medical Technologies Inc.'s ability to continue as a going concern after auditing the financial statements for the year ended Dec. 31, 2006. The auditors pointed out that the company has suffered recurring losses, has had significant recurring negative cash flows from operations, and has an accumulated deficit. CAMARGO CORREA: Fitch Affirms 'BB' Issuer Default Rating -------------------------------------------------------- Fitch Ratings has affirmed the foreign currency and local currency Issuer Default Ratings of Camargo Correa S.A. at 'BB'. Fitch has also affirmed the 'BB' rating on the $250 million senior unsecured bonds due 2016 issued by CCSA Finance Limited (a special-purpose vehicle wholly-owned by Camargo and incorporated in the Cayman Islands), which is unconditionally guaranteed by Camargo. In addition, Fitch has also upgraded Camargo's national debt rating to 'AA-(bra)' from 'A+(bra)'. The Rating Outlook is Stable. The ratings affirmation and national scale ratings upgrade reflect the improving Brazilian economic environment which has begun to favorably impact much of Camargo's businesses, particularly in its cement and engineering and construction businesses. Camargo's core businesses of cement, engineering and construction, textiles and footwear are highly correlated to general economic conditions in Brazil, Argentina and other countries in which it operates. Current domestic environment has experienced continued improvement, risks associated with a softening U.S. economy and the impact of it on emerging market countries such as Brazil and Argentina appear to be lower then in previous cycles. Camargo benefits from its diversified portfolio of operations, adequate market position in the industries in which it participates, and strong liquidity relative to consolidated leverage which partially mitigates exposure to economic risks. Additionally, Camargo has both continued to increase diversity of revenues and cash flows across industry sectors and the proportion of exports sales abroad within total revenues. Camargo is seeking to grow strongly over the next several years and further position itself among the top five industrial private conglomerates in Brazil, further strengthening its market position. Some of this growth will be organic, particularly in the footwear and engineering and construction segments, which are planning to expand their market base internationally. In the cement and textiles segments, much of the growth is planned through acquisitions. Camargo does not expect to enter any new industries in the near future. In recent years, Camargo has pursued a growth strategy targeted primarily to expand operations outside of Brazil, which should further diversify country risk. Recent acquisition highlights include the 2005 US$1 billion acquisition of Loma Negra, the largest cement producer in Argentina. Additionally in 2007, Camargo it completed (agreement entered in 2006) the merger of Santista Textil S.A., its textile manufacturer, with Tavex Algodonera S.A., the largest manufacturer of denim in Europe. Export revenues and sales abroad, which accounted for approximately 18% of revenues in 2006, should grow to approximately 22% in 2007, primarily as a result of these transactions. Credit protection measures have been gradually improving since Camargo took an aggressive financial position to fund acquisitions which had caused credit protection to deteriorate in 2005. Leverage ratios are now solid for the rating category on a total debt to EBITDA basis and strong on a net debt basis. Camargo has had a history of maintaining a large cash balance on its balance sheet in order to facilitate its acquisition prospects in a scenario where access to debt markets becomes limited. Therefore, Fitch see lower degree of risk of shareholder friendly actions such as a special dividend, as it relates to its large cash balance. Nevertheless, the impact of Carmargo's aggressive growth strategy on credit protection measures remains a concern, which has been incorporated into the ratings. Fitch expects that Camargo will continue to manage its balance sheet to a targeted ratio of net debt to EBITDA in the 1.5 times -2.5x range. At June 30, 2007, the ratio of total consolidated debt to EBITDA was 3.8x, down from 4.2x in 2006. Net debt to EBITDA was 1.5x, and EBITDA/gross interest expense was 1.9x. The financial performance, industry and geographic diversification, as well as the robust dividend flow from core operating companies and minority equity stakes, mitigate the structural subordination risk associated with a holding company structure. At June 30, 2007, Camargo had consolidated total debt of 5.7 billion Brazilian reais of which approximately 45% was denominated in currencies other than the domestic currency. Of the total debt approximately R$3.4 billion is at the holding company and its controlled subsidiaries (23.5% short-term) and R$2.3 billion at non-controlled subsidiaries (11% short-term). Camargo had R$3.4 billion of consolidated cash during the same period with about R$2 billion at the holding company. The holding company maintained a substantial amount of offshore cash at the end of June ($582 million). Consolidated short-term debt accounted for about 20% of total debt. Camargo is one of the largest private industrial conglomerates in Brazil. Camargo is a holding company with interests in cement, engineering and construction, textiles, footwear and sportswear manufacturing. It also owns non-controlling equity interests in the energy, transportation and steel businesses. During the last 12 months through June 2007, Camargo had net sales of R$9.2 billion and EBITDA of R$1.4 billion. CARDIMA INC: Sept. 30 Balance Sheet Upside-Down by $18.8 Million ---------------------------------------------------------------- Cardima Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $1.7 million in total assets and $20.5 million in total liabilities, resulting in an $18.8 million total shareholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $1.4 million in total current assets available to pay $20.4 million in total current liabilities. The company reported a net loss of $3.8 million on net sales of $311,000 for the third quarter ended Sept. 30, 2007, compared with net income of $1.0 million on net sales of $254,000 in the same period last year. The increase in net sales was primarily attributable to increased sales and marketing efforts in the United States and European countries. Interest expense increased to $2,314,000 in the third quarter of 2007 from $159,000 in the third quarter of 2006. Other income for the quarter ended Sept. 30, 2007, was $9,000 as compared to other income of $2.6 million for the same period in 2006. 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?25c7 Going Concern Doubt Marc Lumer & Company, in San Francisco, expressed substantial doubt about Cardima Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations. About Cardima Inc. Headquartered in Fremont, California, Cardima Inc. (OTC BB: CRDM.OB) -- http://www.cardima.com/-- has developed the PATHFINDER(R) Series of diagnostic catheters, the REVELATION(R) Series of ablation catheters, the INTELLITEMP(R) Energy Management Device, and the Surgical Ablation System. The REVELATION(R) Series with the INTELLITEMP(R) Energy Management Device was developed for the treatment of atrial fibrillation and received CE mark approval in Europe. The PATHFINDER(R) Series diagnostic catheters and the SAS with an INTELLITEMP(R) received FDA 510(k) clearance in the U.S. CHAMPION ENTERPRISES: To Close Alabama Manufacturing Facility ------------------------------------------------------------- Champion Enterprises Inc. will close its manufacturing facility in Guin, Alabama. As a result of the closure, the company expects to record pretax restructuring charges of up to $4.5 million in the fourth quarter ending Dec. 29, 2007. "We regret having to make the decision to close our Guin, Alabama operation which has been part of the Champion organization since the late 1980s, but its capacity utilization rate and profitability continue to run well below acceptable levels and any near-term improvement appears unlikely," stated William Griffiths, chairman, president and chief executive officer of Champion Enterprises Inc. "This is the seventh manufacturing facility we have idled or closed since mid-2006 in an effort to continue delivering strong segment operating margins despite challenging U.S. housing markets." About Champion Enterprises Inc. Based in Auburn Hills, Michigan, Champion Enterprises Inc. (NYSE: CHB) -- http://www.championhomes.com/-- operates 31 manufacturing facilities in North America and the United Kingdom working with independent retailers, builders and developers. The Champion family of builders produces manufactured and modular homes, as well as modular buildings for government and commercial applications. * * * Moody's Investor Service placed Champion Enterprises Inc.'s senior unsecured debt and probability of default ratings at 'B1' in September 2006. The ratings still hold to date with a negative outlook. CHARLES BRADLEY: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: Charles E. Bradley, Sr. Family, L.P. c/o Stanwich Consulting Corp. One Stamford Landing 62 Southfield Avenue Stamford, CT 06902 Bankruptcy Case No.: 07-50725 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- John Grier Poole Family, L.P. 07-50726 Reunion Industries, Inc. 07-50727 Chapter 11 Petition Date: November Court: District of Connecticut (Bridgeport) Debtor's Counsel: Carol A. Felicetta, Esq. Reid and Riege, P.C. 195 Church Street, 15th Floor New Haven, CT 06510-1819 Tel: (203) 777-8008 Fax: 203-777-6304 Estimated Assets Estimated Debts ---------------- --------------- Charles E. Bradley, Sr. $0 $0 Family, L.P. John Grier Poole Family, $0 $0 L.P. Reunion Industries, Inc. $0 $1,513,143 A. Charles E. Bradley, Sr. Family, LP does not have any creditors who are not insiders. B. John Grier Poole Family, LP does not have any creditors who are not insiders. C. Reunion Industries, Inc's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Scot Industries $253,399 Attention: President or Managing Agent P.O. Box 0146 Lone Star, TX 75668 Earle M. Jorgensen $130,585 Attention: President or Managing Agent 1900 Mitchell Boulevard Schaumburg, IL 60194 Kwa Properties, L.L.C. $115,286 Attention: President or Managing Agent 844 East Rockland Road Libertyville, IL 60048 Pinnacle Precision Co. $112,263 Tech Syn $98,292 Westfield Bank, F.S.B. $81,712 Steel Supply Co. $75,651 Burgley Gas $74,308 Steelworkers Health & Welfare $72,999 Fund Masterform Tool Co. $61,885 Bearing Distributors $56,771 Wisconsin Steel $48,600 Scot Forge $45,180 Progressive Turnings $45,014 Duquesne Light Co. $42,662 Piedmont Plastics $42,033 B.&D. Cylinders $41,978 Hartman & Hartman $38,794 United Cast Bar $38,331 Pittsburgh Foundry & $37,400 Machinery CHICAGO H&S: Court Gives Nod to Akin Gump as Co-Counsel ------------------------------------------------------- Chicago H&S Hotel Property, L.L.C., obtained authority from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Akin Gump Strauus Hauer & Feld LLP as its bankruptcy co- counsel. Akin Gump is expected to: (a) render legal advice with respect to the powers and duties of the Debtor that continues to operate its business and manage its properties as debtor-in-possession; (b) negotiate, prepare and file a chapter 11 plan or plans and disclosure statements in connection with such plans, and otherwise assist the Debtor in the sale of the Property; (c) take all necessary action to protect and preserve the Debtor's estate including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, negotiations concerning all litigation in which the Debtor is or becomes involved, and the evaluation and objection to claims filed against the estate; (d) prepare, on behalf of the Debtor, all necessary applications, motio0ns, answers, orders, reports and papers in connection with the administration of the Debtor's estate, and appear on behalf of the Debtor at all Court hearings in connection with the Debtor's case; (e) render legal advice and perform general services in connection with the bankruptcy case; and (f) perform all other necessary legal services in connection with the chapter 11 case. The Debtor discloses that professionals of the firm bill: Designation Hourly Rate ----------- ----------- Partners and Counsel $475 - $740 Associates $225 - $335 Paralegals $175 To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Charles R. Gibbs, Esq. Akin Gump Strauss Hauer & Feld LLP 1700 pacific Avenue, Suite 4100 Dallas, TX 75201 Tel: (214) 969-4710 Fax: (214) 969-4343 http://www.akingump.com/ Based in Chicago, Illinois, Chicago H&S Hotel Property, LLC, dba Hotel 71, owns and operates a 40-story, 437 guestroom full service hotel. The company filed for Chapter 11 protection on Oct. 29, 2007 (Bankr. N.D. Ill. Case No. 07-20088). The Debtor disclosed estimated assets and debts of more than $100 million at the time of its filing. CHICAGO H&S: Court Approves Perkins Coie as Co-Counsel ------------------------------------------------------ Chicago H&S Hotel Property, L.L.C., obtained authority from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Perkins Coie LLP as its bankruptcy co-counsel. Perkins Coie is expected to: a. advise the Debtor with respect to its powers and duties as a debtor-in-possession in the continued management and operation of its business and properties; b. attend meetings and negotiate with representatives of creditors and other parties-in-interest; c. take all necessary action to protect and preserve the Debtor's estate including prosecuting actions on the Debtor's behalf, defend any action commenced against the Debtor, and represent the Debtor's interest in negotiations concerning all litigation in which the Debtor is involved, including, but not limited to, objections to claims filed against the estate; d. prepare all motions, applications, answers, orders, reports and papers necessary to administer the Debtor's estate; e. take any action necessary on behalf of the Debtor to obtain approval of a disclosure statement and the Debtor's plan of reorganization; f. represent the Debtor in connection with obtaining postpetition financing, if required; g. advise the Debtor in connection with any potential sale of assets; h. appear before the Court, any appellate court and the U.S. Trustee and protect the interests of the Debtor's estate before these courts and the U.S. Trustee; i. consult with the Debtor regarding tax matters; and j. perform all other necessary legal services and provide all other necessary legal advice to the Debtor in connection with the Chapter 11 case. The Debtor discloses that the firm's hourly rates range from $805 per hour for experienced partners to $225 for junior associates. Paralegals on the other hand, bill between $110 to $245 per hour. The professionals expected to render services in this case and their hourly rates are: Professional Designation Hourly Rate ------------ ----------- ----------- Daniel A. Zazove, Esq. Partner $610 Jason d. Horwitz, Esq. Associate $400 Michelle L. Jawon Paralegal $160 Mr. Zazove assures the Court that his firm does not represent any interest adverse to the Debtor or its estate. The firm can be reached through: Daniel A. Zazove, Esq. Perkins Coie LLP 131 South Dearborn Street, Suite 1700 Chicago, Illinois 60603-5559 Tel: (312) 324-8605 Fax: (312) 324-9605 http://www.perkinscoie.com/ Based in Chicago, Illinois, Chicago H&S Hotel Property, LLC, dba Hotel 71, owns and operates a 40-story, 437 guestroom full service hotel. The company filed for Chapter 11 protection on Oct. 29, 2007 (Bankr. N.D. Ill. Case No. 07-20088). The Debtor disclosed estimated assets and debts of more than $100 million at the time of its filing. CHICAGO H&S: U.S. Trustee Appoints Three-Member Creditors Panel --------------------------------------------------------------- The U.S. Trustee for Region 11 appointed three creditors to serve on an Official Committee of Unsecured Creditors in Chicago H&S Hotel Property LLC's chapter 11 case. The Committee members are: 1. Clever Ideas, Inc. 180 North Stetson, Suite 5300 Chicago, IL 60601 Representative: Edward Linson 2. DLA Piper US, LLP 203 North LaSalle Street, Suite 1900 Chicago, IL 60601 Representative: David Neff 3. Hudson boiler & Tank Co. 1725 West Hubbard Street Chicago, IL 60622 Representative: E.J. Hovefe Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. Based in Chicago, Illinois, Chicago H&S Hotel Property, LLC, dba Hotel 71, owns and operates a 40-story, 437 guestroom full service hotel. The company filed for Chapter 11 protection on Oct. 29, 2007 (Bankr. N.D. Ill. Case No. 07-20088). The Debtor disclosed estimated assets and debts of more than $100 million at the time of its filing. CITY OF HOMESTEAD: Fitch Withdraws BB+ Rating on $79.88MM Bonds --------------------------------------------------------------- Fitch withdraws the rating of 'BB+' for $79,880,000 City of Homestead, Florida, industrial development revenue bonds, (the Lincoln-Marti Community Agency Projects), series 2007A and the $1,765,000 City of Homestead, Florida, taxable industrial development revenue bonds, (Lincoln-Marti Community Agency Projects), series 2007B. Fitch will no longer provide rating coverage at this time. CITY OF HOMESTEAD: Fitch Rates $1.765MM Revenue Bonds at BB+ ------------------------------------------------------------ Fitch has rated the $79,880,000 City of Homestead, Florida, Industrial Development Revenue Bonds, (the Lincoln-Marti Community Agency Projects), series 2007A and the $1,765,000 City of Homestead, Florida, Taxable Industrial Development Revenue Bonds, (Lincoln-Marti Community Agency Projects), series 2007B 'BB+'. The series 2007A and 2007B bonds are expected to be sold the week of December 3, 2007 through negotiation by Wachovia Bank, N.A. Proceeds of the series 2007A and 2007B bonds will finance the acquisition and equipping of certain school facility projects, fund a debt service reserve, and pay costs of issuance. The bonds are secured by a gross pledge of revenues available to the Lincoln-Marti Community Agency, including all tuition and child care receipts, grants not otherwise restricted as to use, and amounts collected from related activities at each project facility, such as meal programs, daycare or special events, and a mortgage interest in each of the agency's 34 childcare and school facilities. The Rating Outlook is Stable. The Stable Outlook reflects expectations that the agency will continue to generate positive operations, control expenditures, and build liquidity. The agency's financial forecast is based upon reasonable assumptions of 3% annual increases in both revenues and expenditures, generating sufficient funds to cover annual debt service in different stress scenarios. Fitch believes the agency will achieve its forecast coverage levels and build liquidity through operating surpluses as expected cost efficiencies of the consolidation are realized. However, liquidity is never expected to be a rating strength. The establishment of Lincoln-Marti Management Services, LLC's as manager of the consolidated enterprise is viewed positively as it provides for a seamless transition and keeps in place the expertise and knowledge base that has benefited the organization in the past. The organization's strong essential service record suggests the risk of non-renewal of its contracts with different governmental entities is minimal. The 'BB+' rating is primarily supported by the strong structural and legal provisions of the transaction. Bondholders benefit from a direct deposit 'lock box' security, together with mortgages on each of the organization's 34 childcare and school facilities. Under transaction documents, the agency is obligated to deposit its gross revenues, including all tuition and child care receipts, governmental grants, and auxiliary revenues, directly with the trustee. The trustee is to first apply these funds to bond debt service. Additional bondholder protections include a fully funded debt service reserve, a repair and replacement reserve fund, a debt service coverage covenant, a liquidity covenant, and an additional bonds test. The manager's agreement to defer management fees if cash flows are insufficient to meet annual debt service was viewed favorably in the rating process. In addition to its structure, important transaction strengths include the organization's long and established record of providing services for the care and schooling of primarily underprivileged children in Miami-Dade County; positive operating history; experienced and dedicated principals and staff; and its location in a growth area of the state of Florida. Lincoln- Marti's favorable reputation stems from its strong, committed leadership and its success in providing essential purpose services to the community. The primary credit concerns are the agency's extremely limited liquidity, the lack of institutionalized policies and procedures which could complicate the succession of current leadership, possibility for changes in government funding which could pressure the agency's financial profile, and high but manageable debt. The Lincoln-Marti group has provided a variety of educational services and programs for over 40 years, for the care and schooling of underprivileged children in Miami-Dade County. CORPUS CHRISTI: Section 341(a) Meeting Scheduled on December 12 --------------------------------------------------------------- The U.S. Trustee for Region 7 will convene a hearing of creditors of Corpus Christi Resources LLC on Dec. 12, 2007, 9:00 a.m., at Room 1107, 606 North Carancahua in Corpus Christi, Texas. 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. Based in Corpus Christi, Texas, Corpus Christi Resources LLC, is a privately owned real estate development company that seeks to develop raw land and to remediate property in New York. The company filed for Chapter 11 protection on Oct. 29, 2007 (Bankr. S.D. Tex. Case No. 07-20576). The Debtor's list of its five largest unsecured creditors showed claims aggregating to more than $15 million. CORPUS CHRISTI: Taps Thompson & Knight as Bankruptcy Counsel ------------------------------------------------------------ Corpus Christi Resources LLC asks the U.S. Bankruptcy Court for the Southern District of Texas for permission to employ Thompson & Knight LLP as its bankruptcy counsel. As counsel, Thompson & Knight will: a. advise the Debtor with respect to its rights, duties and powers in its bankruptcy proceeding; b. assist and advise the Debtor relative to its administration of its case; c. assist the Debtor in analyzing the claims of the creditors and in negotiating with these creditors; d. assist the Debtor in the analysis of and negotiations with any third party concerning matters related to, among other things, the terms of its plan of reorganization; e. represent the Debtor at all hearings and other proceedings; f. review and analyze all applications, orders, statements of operations and schedules filed with the Court and advise the Debtor as to its property; g. assist the Debtor in preparing pleadings and applications . as may be necessary in furtherance of the Debtor's interests and objections; and h. perform other legal services as may be required and are deemed to be in the interest of the Debtor in accordance with the Debtor's powers and duties as set forth in the Bankruptcy Code. The Debtor discloses that the firm has agreed to a flat fee of $55,000. To the best of the Debtor's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm can be reached through: Rhett G. Campbell, Esq. Thompson & Knight LLP 333 Clay Street, Suite 3300 Houston, TX 77002 Tel: (713) 653-8660 Fax: (832) 397-8260 http://www.tklaw.com/ Based in Corpus Christi, Texas, Corpus Christi Resources LLC, is a privately owned real estate development company that seeks to develop raw land and to remediate property in New York. The company filed for Chapter 11 protection on Oct. 29, 2007 (Bankr. S.D. Tex. Case No. 07-20576). The Debtor's list of its five largest unsecured creditors showed claims aggregating to more than $15 million. DANA CORPORATION: Wants Pact Resolving Appaloosa Dispute Approved ----------------------------------------------------------------- Dana Corporation and 40 of its domestic direct and indirect debtor-subsidiaries ask the U.S. Bankruptcy Court for the Southern District of New York to approve a settlement that resolves their disputes with Appaloosa Management, L.P., which had lost a bid to provide equity exit financing to the company. Under the settlement, Dana agreed to reimburse up to $2,000,000 for out-of-pocket expenses Appaloosa Management incurred in the Chapter 11 cases, in exchange for its support to Dana's Joint Plan of Reorganization. In October 2007, Dana's Board of Directors rejected Appaloosa's offer to purchase preferred Dana shares that remain unsold in a rights offering. Dana's Reorganization Plan, as amended, incorporates a Global Settlement which provides, among others, (i) an equity financing of up $790,000,000 by Centerbridge Capital Partners, L.P., and members of an Ad Hoc Steering Committee, and (ii) a settlement between Dana and its unions. As part of of the Settlement, Appaloosa has agreed to withdraw its appeal on a prior order by Judge Lifland approving the Debtors' investment agreement with Centerbridge. The Settlement Agreement will also permit Appaloosa to invest in reorganized Dana. Appaloosa will be permitted to acquire unsecured claims prior to the November 28, 2007 record date established by the Plan and the Investment Agreement for determining parties entitled to purchase new Series B preferred stock. Dana said that its settlement agreement with Appaloosa, which holds 14.98% of existing common stock of Dana, will resolve one of the major potential obstacles remaining to confirmation of the Plan, at minimal cost. The Settlement has been negotiated with the Official Committee of Unsecured Creditors. Centerbridge has also consented to the terms of the Settlement. The primary terms of the Settlement Agreement are: -- Withdrawal of Appeal: Appaloosa will withdraw the Appellate Case with prejudice within two business days of the Settlement becoming effective. -- Waiver of Standstill: The Debtors will waive certain provisions of a Confidentiality Agreement between Dana and Appaloosa to lift contractual restrictions on Appaloosa from acquiring a beneficial ownership of claims or debt securities of Dana its subsidiaries. -- Expenses: The Creditors Committee will support, and the Debtors will take no position with respect to, a motion by Appaloosa under Section 503(b) of the Bankruptcy Code seeking reimbursement of $2,000,000 of reasonable fees and expenses incurred in connection with the Debtors' Chapter 11 cases. -- Voting: The order approving the Settlement will provide that all of Appaloosa's claims against the Debtors now held or acquired prior to the deadline for voting on the Plan will be deemed to vote to accept the Plan and consent to the releases provided for therein. Appaloosa will only transfer its claims to an entity that agrees to accept all of Appaloosa's obligations under the Settlement. -- Plan Support Agreement: Appaloosa will reaffirm its obligations under the Plan Support Agreement dated July 26, 2007, among Dana, the Unions, Centerbridge and certain of its affiliates and various holders of unsecured claims that agreed to support the Plan. The Debtors and the Creditors Committee waive certain claims for breach of contract they may have versus Appaloosa under the Plan Support Agreement. -- Investment Agreement: Appaloosa will support the Investment Agreement between Dana and Centerbridge and will refrain from taking a number of enumerated actions that would serve to interfere with the Investment Agreement or the confirmation of the Plan. Corinne Ball, Esq., at Jones Day, in New York, tells the Court, the Settlement Agreement (a) surpasses "the lowest point in the range of reasonableness," (b) represents a proper exercise of the Debtors' business judgment and (c) should be approved pursuant to Section 363 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedure. About Dana Corporation Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Sept. 30, 2007, the Debtors listed $7,018,000,000 in total assets and 7,554,000,000 in total debts resulting in a total shareholders' deficit of $536,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DANA CORPORATION: Secures $2,000,000,000 Exit Financing ------------------------------------------------------- Dana Corporation has obtained fully underwritten commitments for a $2,000,000,000 exit financing facility, marking a significant step toward the company's timely emergence from Chapter 11 reorganization. These commitments ensure that Dana will be positioned to emerge from bankruptcy by the end of January 2008, or earlier. The exit facility will be underwritten by Citigroup Global Markets Inc., Lehman Brothers Inc., and Barclays Capital, and will consist of a $650,000,000 asset-based revolving credit facility and a $1,350,000,000 term loan facility. The facilities are secured by substantially all of the assets of Dana and most of its domestic subsidiaries. Dana Chairman and Chief Executive Officer Mike Burns said, "This is a significant step toward our emergence as a strong, financially stable company that is equipped to make significant investments in our programs and to continue providing innovative products of the highest quality to our customers worldwide. The fact that our exit facility is fully underwritten during difficult credit market conditions is a strong endorsement of our proposed capital structure and success in implementing our turnaround initiatives. In addition, it further ensures our timely emergence from Chapter 11 after confirmation of our plan of reorganization by the bankruptcy court." Proceeds from the facility will be used by Dana to repay its debtor-in-possession credit facility, make other payments required upon exit from bankruptcy, and provide liquidity to fund working capital and other general corporate purposes. The commitment letter remains subject to bankruptcy court approval and the funding of the commitments set forth in the commitment letter is subject to customary closing conditions. Dana was advised by Miller Buckfire & Co., AlixPartners, and Jones Day in connection with its exit financing process. About Dana Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007, the Debtors listed US$6,878,000,000 in total assets and $7,551,000,000 in total debts resulting in a total shareholders' deficit of $673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 62; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DIASYS CORP: Posts $163,219 Net Loss in 3rd Quarter Ended Sept. 30 ------------------------------------------------------------------ DiaSys Corp. reported a net loss of $163,219 on net sales of $300,568 for the third quarter ended Sept. 30, 2007, compared with a net loss of $193,836 on net sales of $391,227 in the same period last year. The decrease in net sales for the three-month period was primarily due to delays in implementation of workstations in Mexico, as well as delays in obtaining final VLA testing of the veterinary Parasep product. Selling, general and administrative expenses for the three-month period ended Sept. 30, 2007, decreased $60,404 from $289,289 to $228,885 or 20.88 % over the comparable prior period. Research and development expense for the three-month period ended Sept. 30, 2007, decreased $31,639, or 78.24 % over the comparable prior period. At Sept. 30, 2007, the company's consolidated balance sheet showed $2,407,630 in total assets, $1,699,700 in total liabilities, and $707,930 in total shareholders' equity. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $591,633 in total current assets available to pay $1,699,700 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?25c8 Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 25, 2007, Fiondella, Milone & LaSaracina LLP expressed substantial doubt about the DiaSys Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the fiscal year ended June 30, 2007. The auditing firm pointed to the company's recurring losses from operations, cash used by operating activities, negative working capital, and accumulated deficit. About DiaSys Corp. Headquartered in Waterbury, Connecticut, DiaSys Corporation (OTC BB: DYXC.OB) -- http://www.diasys.com/-- designs, develops, manufactures and distributes proprietary medical laboratory equipment, consumables and infectious disease test-kits to healthcare & veterinary laboratories worldwide. The company operates in Europe through its wholly owned subsidiary based in Wokingham, England and through distributors in South America. DPL CAPITAL: Moody's Lifts Securities Rating to Baa3 from Ba1 ------------------------------------------------------------- Moody's Investors Service upgraded DPL Inc.'s senior unsecured debt rating to Baa2 from Baa3, and upgraded The Dayton Power and Light Company's senior secured debt to A2 from A3; Issuer Rating to A3 from Baa1; and preferred stock to Baa2 from Baa3. Moody's also upgraded the trust preferred securities issued by DPL Capital Trust II to Baa3 from Ba1. This action concludes the review for possible upgrade that was initiated on November 15, 2007. The rating outlook is stable for DPL, DP&L, and DPL Capital Trust II. The upgrades reflects strong and improving consolidated cash flow coverage ratios and financial metrics that compare strongly to peer companies, especially at the utility. "The upgrades reflect the continued deleveraging of the parent company, including the redemption of $225 million of parent company debt earlier this year, and Moody's expectation that the company will continue to reduce parent company debt over the next two years," said Michael G. Haggarty, Vice President and Senior Credit Officer. "The upgrades consider the lower business risk of the consolidated organization following the sale of two peaking units in April for $151.2 million, which should facilitate additional debt reduction at the parent company level," said Haggarty. Business risk at DPL has also been reduced as a result of the resolution and settlement of litigation with the company's previous management team, which had been an ongoing source of uncertainty for the company. In addition, unlike most other predominantly coal fired utilities, DP&L has completed a large proportion of the capital expenditures required to put its plants into compliance with more stringent environmental guidelines. The utility's capital expenditures are projected to decrease from a high of $360 million this year to $200 million in 2008 and again to $145 million in 2009, resulting in significant free cash flow generation in both 2008 and 2009. Although there is considerable uncertainty regarding the future regulatory framework for investor owned utilities in the state of Ohio, DP&L's current rate stabilization plan does not expire until Dec. 31, 2010, a full two years beyond those in place for the other utilities in the state. This should give DP&L additional time to prepare for and adapt to any changes in the regulatory environment in the state. The stable outlook for the ratings of DPL and DP&L reflects Moody's expectation that the company's strong financial performance will continue, that leverage will be further reduced at the parent company, and that DPL management will continue to execute a strategy focused on the operational and financial performance of its regulated utility. While consolidated financial metrics could justify a higher parent company rating and a narrowing of the ratings notching between the parent company and the utility, risks associated with regulatory uncertainty in Ohio and the still considerable $767 million of debt at the parent level offsets these stronger financial metrics. A positive outlook for the parent company could be considered when there is additional regulatory clarity in the state and the anticipated parent company debt paydowns are realized. DPL Inc., headquartered in Dayton, Ohio, is a diversified regional energy company operating in Ohio through its subsidiaries The Dayton Power and Light Company and DPL Energy LLC. DURA AUTOMOTIVE: Obtains Overwhelming Creditor Support on Plan -------------------------------------------------------------- DURA Automotive Systems, Inc., and its debtor-affiliates will ask the U.S. Bankruptcy Court for the District of Delaware to confirm their Joint Plan of Reorganization on December 6, 2007, at 9:30 a.m., Eastern Time. The Debtors obtained overwhelming support from creditors entitled to vote on their Joint Plan of Reorganization. According to Financial Balloting Group, the Debtors' voting agent, each voting class voted in favor of the Plan: Amount Amount Number Number Accepting Rejecting Accepting Rejecting (% of Amount (% of Amount (% of Num (% of Num CLASS Voted) Voted) Voted) Voted) ----- ------ ------ ------ ------ Class 2: $143,400,000 $3,500,000 16 1 Second Lien (97.56%) (2.44%) (94.12%) (5.88%) Facility Claims Class 3A: $340,858,465 $1,039,000 78 6 Holders of (99.70%) (0.30%) (92.86%) (7.14%) Senior Notes w/ Principal Amount > $75,000 Class 3B: $1,325,852 $285,000 41 7 Holders of (82.31%) (17.69%) (85.42%) (14.58%) Senior Notes w/ Principal Amount <= $75,000 Class 5A $5,744,292 $174,616 798 25 Holders of (96.96%) (3.04%) (96.82%) (3.04%) Other Gen. Unsecured Claims <= $75,000 Class 5B $4,478,035 $0 16 0 Trade Claims (100.00%) (0.00%) (100.00%) (0.00%) > $75,000 Class 5C $695,062 $7 61 7 Non-Trade (100.00%) (0.00%) (89.71%) (10.29%) Claims > $75,000 The Plan provides for full recovery to administrative claimants and secured lenders under Class 1, accordingly, these claimants were not given ballots and were deemed to accept the Plan. Holders of subordinated notes aggregating $560,700,000 classified under Class 4, holders of subordinated debentures aggregating $58,300,000 under Class 6, holders of subordinated claims in Class 7, and owners of existing stock of DURA under Class 8 will not receive any recovery under Plan. Accordingly, the Debtors did not solicit votes from these claimants as they were deemed to reject the Plan. The Plan provides for 100% recovery to Class 2 Second Lien Facility Claims (the postpetition interest to paid to these claimants remain in dispute), 55% recovery to holders of $418,700,000 in senior notes in Class 3, and a 22% recovery for holders of $22,300,000 in other general unsecured claims in Class 5. At the confirmation hearing, the Debtors will step Judge Kevin J. Carey through the 13 statutory requirements necessary to confirm a plan pursuant to Section 1129 of the Bankruptcy Code. With respect to the proposed treatment of claims and interests: -- Section 1129(a)(8) requires that each class of claims or interests under a plan has either accepted the plan or not be impaired under the plan. Pursuant to Section 1126(c), a class of claims has accepted the plan if creditors holding at least two-thirds in amount and more than one- half in number of the allowed claims of the class voted in favor of the plan. -- Notwithstanding Section 1129(a)(8), if at least one class of impaired claims or interests accepts the plan, the plan can still be confirmed under Section 1129(b)(1)'s "cramdown" provision. Under the cram-down provision, upon the request of the plan proponent, the plan may be confirmed if it does not discriminate unfairly, and is fair and equitable, with respect to each class of claims or interests that is impaired under, and has not accepted, the plan. The Plan of Reorganization contemplates a $425,000,000 exit financing and a $140,000,000 to $160,000,000 equity rights offering to be fully backstopped by Pacificor, LLC. Holders of senior notes in excess of $75,000, which also includes Pacificor, were entitled to buy shares of new common stock of DURA at the rights offering, which concluded on November 15, 2007. Class 3A holders elected to subscribe approximately $1,300,000. Pursuant to the Court-approved backstop agreement, Pacificor will purchase the unsubscribed portion of the shares. Kelly Beaudin Stapleton, the United Stated Trustee for Region 3, has said that the Plan is unconfirmable on grounds that, among other things, the Plan unfairly discriminates against certain general unsecured Class 3B Senior Notes Claimants, who will be paid in cash and not entitled to participate in the rights offering. The Debtors, however, refute the U.S. Trustee's allegations, noting that while the currency type differ for the two subclasses, the implied value of the distribution is identical. DURA also noted that an overwhelming majority of the 335 senior noteholders in Class 3A and 3B have consented to the separate classification. DURA had opted to provide cash to smaller holders of senior notes because the number of shareholders in the Reorganized DURA cannot exceed 300 if the company is to emerge as a privately held company, a condition set by Pacificor. About Dura Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin-America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had USUS$1,993,178,000 in total assets and USUS$1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expired on Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan of Reorganization and the Disclosure Statement explaining that Plan was approved on Oct. 3, 2007. The hearing to consider confirmation of the plan is set for Dec. 6, 2007. (Dura Automotive Bankruptcy News, Issue No. 38 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DUTCHMANS CREEK: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Dutchmans Creek Development, L.L.C. 1400 Harding Place, Suite 100 Charlotte, NC 28204 Bankruptcy Case No.: 07-32314 Chapter 11 Petition Date: November 26, 2007 Court: Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtor's Counsel: Travis W. Moon, Esq. Hamilton Moon Stephens Steele & Martin, P.L.L.C. 2020 Charlotte Plaza, 201 South College Street Charlotte, NC 28244-2020 Tel: (704) 344-1117 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its largest unsecured creditors. EMERGENCY MEDICAL: Earns $14.7 Million in Third Quarter 2007 ------------------------------------------------------------ Emergency Medical Services Corporation disclosed results for the third quarter and nine months ended Sept. 30, 2007. EMSC's net income for the third quarter of 2007 was $14.7 million, compared to net income of $10.3 million, an increase of 41.7% over the same quarter last year. The improvement in earnings is due primarily to improved operating performance driven by higher net revenues and an increase in patient encounters. For the quarter ended Sept. 30, 2007, EMSC's net revenue totaled $529.8 million, an increase of 9.1%, compared to the same quarter last year. "The company continues to execute on its business plan of organic growth, margin improvements, strategic acquisitions, and leveraging our scale and scope of services for national agreements," William A. Sanger, EMSC Chairman and Chief Executive Officer, said. "Our acquisitions of ambulance businesses in St. Louis, Las Vegas, Dallas and Atlanta, and our definitive agreement to purchase River Medical, an ambulance company in Arizona, demonstrate our ability to complement organic growth with strategic market expansion." Operating cash flows for the quarter ended Sept. 30, 2007, were $37.7 million, compared to $11.2 million during the same quarter last year. Operating cash flows in the quarter ended Sept. 30, 2007 were positively impacted by improved collections in the quarter. Accounts receivable increased $7.1 million in the quarter, compared to an increase of $27.1 million during the same period in 2006. Of the $7.1 million increase in net accounts receivable, $4.9 million was from the acquisition of MedicWest, which did not include the purchase of accounts receivable. Net cash used in investing activities was $87.9 million for the quarter ended Sept. 30, 2007, compared to $45.8 million for the same quarter last year. The increase relates primarily to acquisitions of $75.2 million during the quarter ended Sept. 30, 2007, compared to $10.7 million during the same period in 2006. The increase in acquisitions was partially offset by a $15.0 million reduction in net insurance collateral funding and a $5.3 million reduction in capital expenditures compared to the same period last year. Net cash provided by financing activities was $43.1 million for the quarter ended Sept. 30, 2007, compared to $12.6 million used for the same quarter last year. Net cash from financing activities for the quarter ended Sept. 30, 2007 includes net borrowings of $39.0 million under its revolving credit facility, used for acquisitions. Net cash used in financing activities for the same period in 2006 included unscheduled repayments of approximately $9.4 million on its senior secured credit facility. Nine-Month Results EMSC's net income for the nine months ended Sept. 30, 2007 was $46.4 million, compared to net income of $28.3 million, an increase of 61.2% over the same period last year. For the nine months ended Sept. 30, 2007, EMSC's net revenue was $1.57 billion, an increase of 9.5% compared to the same period last year. Operating cash flows for the nine months ended Sept. 30, 2007 were $56.9 million, compared to $123.6 million for the same period last year. Operating cash flows in the nine months ended Sept. 30, 2006 were positively impacted by the collection of approximately $24.0 million related to 2005 hurricane and income tax receivables. Operating cash flows in the nine months ended Sept. 30, 2007 were negatively impacted by increases in accounts receivable. These increases were the result of significant revenue growth at EmCare and collection delays in both operating segments. Net cash used in investing activities was $111.1 million for the nine months ended Sept. 30, 2007, compared to $87.6 million for the same period last year. The increase relates primarily to acquisitions of $75.6 million during the nine months ended Sept. 30, 2007, compared to $11.6 million during the same period in 2006. The increase was partially offset by a $24.5 million reduction in net insurance collateral funding and an $11.1 million reduction in net capital expenditures compared to the same period last year. Net cash provided by financing activities was $37.3 million for the nine months ended Sept. 30, 2007, compared to $31.6 million used for the same period last year. Net cash from financing activities for the nine months ended Sept. 30, 2007 includes net borrowings of $39.0 million under its revolving credit facility, used for acquisitions. Net cash used in financing activities for the same period in 2006 includes unscheduled repayments of approximately $19.4 million on its senior secured credit facility. At Sept. 30, 2007, the company's balance sheet showed total assets of $1.4 billion and total liabilities of $1.0 billion, resulting in a stockholders' equity of $435.5 million. Equity at Dec. 31, 2006, was $386.0 million About Emergency Medical Based in Greenwood Village, Colorado, Emergency Medical Services Corporation (NYSE:EMS) -- http://www.emsc.net/-- provides emergency medical services in the United States. EMSC operates two business segments: American Medical Response, Inc., the company's healthcare transportation services segment, and EmCare Holdings Inc., the company's emergency department and hospital- based management services segment. * * * Moody's Investors Service recently upgraded the Corporate Family Rating on co-issuers AMR Holdco Inc. and EmCare Holdco Inc. to Ba3 from B1. The co-issuers are operated through a holding company, Emergency Medical Services L.P. which is in turn owned by Emergency Medical Services Corporation. Moody's concurrently upgraded the rating on the $450 million senior secured credit facility, consisting of a $100 million senior secured revolver due 2011 and a $350 million senior secured term loan due 2012, to Ba1 from Ba2. Moody's also upgraded the ratings on the $250 million senior subordinated notes due 2015 to B1 from B3. The outlook has been changed to stable from positive. ENERGYTEC INC: Posts $2.1 Million Net Loss in Third Quarter 2007 ---------------------------------------------------------------- Energytec Inc. reported a net loss of $2.1 million on total revenues of $1.5 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $893,431 on total revenues of $2.2 million in the same period last year. Oil and gas revenues for the three months months ended Sept. 30, 2007, declined 30% to $719,018 compared to the same period in the prior year by 30%. The company's cash flow has been severely limited due to the effects of payments made in early 2006. Severance of production pursuant to regulatory issues further impaired the company's ability to generate revenue and cash. Well service revenue also declined by 59% to $195,641 for the three months ended Sept. 30, 2007, as compared with the same period in the prior year. A number of wells were either severed or not producing due to maintenance issues. For the three months ended Sept. 30, 2007, gas sales totaled approximately $497,000. For the same period in 2006, gas sales totaled approximately $569,000. At Sept. 30, 2007, the company's consolidated balance sheet showed $36.2 million in total assets, $20.5 million in total liabilities, and $15.7 million in total shareholders' equity. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $2.5 million in total current assets available to pay $15.9 million 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?25c9 Going Concern Doubt Turner, Stone & Company LLP in Dallas, expressed substantial doubt about Energytec Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm said that the company does not currently have cash reserves sufficient to meet its capital and operational expenditure budget of approximately $22,400,000 for the year ending Dec. 31, 2007. The company believes that it may also have potential liability for rescission or damages to investors in the working interest programs or purchasers of the company's common stock in private placements. About Energytec Inc. Energytec Inc. (Other OTC: EYTC.PK) -- http://www.energytec.com/ -- was formed for the purpose of engaging in oil and gas producing activities through the acquisition of oil and gas properties that have previously been the object of exploration or producing activity, but which are no longer producing or operating due to abandonment or neglect. The company owns working interests in 58,602 acres of oil and gas leases in Texas and Wyoming. The company also owns a gas pipeline of approximately 63 miles in Texas and a well service business, a drilling business, and a sales and distribution business for enhanced oil recovery chemicals and materials related to well operation services. EQUIFIRST MORTGAGE: Fitch Rates $7.6MM Class B-1 Certs. at BB- -------------------------------------------------------------- Fitch Ratings has taken these rating actions on Equifirst Mortgage Loan Trust series 2005-1. Affirmations total $227.1 million and classes placed on Rating Watch Negative total $21.5 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Equifirst 2005-1 -- $54.8 million class A affirmed at 'AAA' (BL: 88.59, LCR: 9.18); -- $44.9 million class M-1 affirmed at 'AA+' (BL: 71.18, LCR: 7.38); -- $26.8 million class M-2 affirmed at 'AA' (BL: 60.66, LCR: 6.29); -- $15.3 million class M-3 affirmed at 'AA-' (BL: 51.91, LCR: 5.38); -- $15.3 million class M-4 affirmed at 'A+' (BL: 34.65, LCR: 3.59); -- $14.5 million class M-5 affirmed at 'A' (BL: 30.97, LCR: 3.21); -- $14.5 million class M-6 affirmed at 'A-' (BL: 27.32, LCR: 2.83); -- $14.9 million class M-7 affirmed at 'BBB+' (BL: 23.62, LCR: 2.45); -- $10.3 million class M-8 affirmed at 'BBB' (BL: 20.99, LCR: 2.18); -- $7.6 million class M-9 affirmed at 'BBB-' (BL: 18.94, LCR: 1.96); -- $7.6 million class B-1 affirmed at 'BB+' (BL: 16.96, LCR: 1.76); -- $13.8 million class B-2 rated 'BB' (BL: 13.25, LCR: 1.37), placed on Rating Watch Negative; -- $7.6 million class B-3 rated 'BB-' (BL: 11.61, LCR: 1.2), placed on Rating Watch Negative; Deal Summary -- Originators: Equifirst (100%) -- 60+ day Delinquency: 18.01%, -- Realized Losses to date (% of Original Balance): 1.36%; -- Expected Remaining Losses (% of Current Balance): 9.65%; -- Cumulative Expected Losses (% of Original Balance): 4.58%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. EUROPEAN AMERICAN: U.S. Trustee Wants Case Trustee Appointed ------------------------------------------------------------ Donald F. Walton, the United States Trustee for Region 21, asks the U.S. Bankruptcy Court for the Northern District of Georgia to direct the appointment of a chapter 11 trustee in European American Realty Ltd.'s bankruptcy case or in the alternative, to convert or dismiss the case. The U.S. Trustee reiterates the provision of Section 1104(e) in which the U.S. Trustee can appoint a trustee if there are reasonable grounds of suspect that current members of the governing body of the debtor ... participated in actual fraud, dishonesty, or criminal conduct in the management of the debtor or the debtor's public financial reporting. CEO Toberman's Pending Lawsuits The U.S. Trustee relates that the Debtor's principal and chief executive officer, Scott K. Toberman, was indicted in the Northern District of Illinois based on an alleged $3 million fraud scheme in an indictment published on Sept. 19, 2007. Allegedly, Mr. Toberman used stolen funds for his personal benefit purchasing items such as fine wine and antiques, paying tuition at Harvard University, and paying debts incurred by Toberman in connection with his efforts to develop the tallest building in Chicago. In addition to the pending indictment, Mr. Toberman is the subject of litigation pending in the Superior Court of Fulton County, Georgia, styled Scott Toberman, Plaintiff, v. LaRose Limited Partnership, et al., Defendants. According to the U.S. Trustee, Toberman challenged the enforceability of a so-called Binding Term Sheet into which Mr. Toberman entered with certain partnerships whose properties were being managed by the Debtor and related entities. The partnerships filed a counterclaim against Toberman, the Debtor, and related entities. On May 24, 2007, with the issuance of partial summary judgment, the Superior Court found that on April 25, 2005, the partnerships confronted Mr. Toberman with accusations of mismanagement and misappropriation of business funds in excess of $10 million. To settle their dispute, the partnerships and Mr. Toberman entered into a Binding Term Sheet pursuant to which Mr. Toberman agreed to pay the partnerships $7.5 million on payment terms set forth in the BTS. Mr. Toberman pledged all of his assets to secure payment. The Superior Court ruled in the partial summary judgment that the BTS is enforceable and, accordingly, the partnerships could enforce its terms or seek damages for any breach. Conversion or Dismissal of Case The U.S. Trustee quotes the provision in Section 112(b) of the Code that states, "[T]he court shall convert a case under this chapter to a case under chapter 7 or dismiss a case under this chapter, whichever is in the best interests of creditors and the estate, if the movant establishes cause. . . ." According to the U.S. Trustee, the Debtor has not yet filed its schedules of assets and debts, nevertheless, the partial summary judgment issued by the Superior Court gives insight to what assets the Debtor has. Pursuant to the BTS, Mr. Toberman pledged all of his assets to pay $7.5 million, including his interest in the Debtor. The Superior Court ruled that the partnerships which took action against Mr. Toberman were entitled to payment from Mr. Toberman and related entities including the Debtor. The U.S. Trustee says that the Debtor derives its income from property management fees, which constitutes the Debtor's only cash assets. Based on the the partial summary judgment, it does not appear that the Debtor's only cash assets are available to the Debtor to fund its case. The U.S. Trustee contests that "even at this early stage of the case, the enforceability of the BTS makes it clear that the Debtor has no ability to reorganize." Consequently, the United States Trustee tells the Court that without its direction to appoint a chapter 11 trustee in the case, the Court should order to convert the case to chapter 7 or dismiss the case. The Court has scheduled a continued hearing on the U.S. Trustee's motion tomorrow, Nov. 29, 2007, at 3:00 p.m. Leroy Culton, Esq., represents Donald F. Walton, U.S. Trustee. About European American Atlanta, Georgia-based European American Realty Ltd. is engaged in the real estate business. The Debtor filed for chapter 11 bankruptcy protection on Sept. 21, 2007 (Bankr. N.D. Ga. Case No. 07-75353). J. Robert Williamson, Esq. at Scroggins and Williamson represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $100 million. EUROPEAN AMERICAN: Court Removes Stay on AlliedBarton's Sublease ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia granted AlliedBarton Security Services LLC relief from automatic stay and to possess the premises at Piedmont Center, Building 5, Suite 110, Atlanta in Fulton County, Georgia, which was subleased from European American Realty Ltd. Sublease at Fulton County On Dec. 17, 1992, the California State Teacher's Retirement System (predecessor-in-interest of TR Piedmont Center Corp.), landlord, and Barton Protective Services Inc. (predecessor-in-interest of AlliedBarton), tenant, executed a Master Lease of the Premises. The master lease requires AlliedBarton to return the premises in broom clean condition on Oct. 31, 2007. On May 19, 2006, AlliedBarton and the Debtor entered into a sublease agreement, which expires by its own terms on Oct. 31, 2007. Under the sublease agreement, the Debtor must vacate the premises as of Oct. 30, 2007. The Debtor, which filed for bankruptcy of Sept. 21, 2007, has as of Oct. 22, 2007, not vacated the premises. As of the bankruptcy filing, the Debtor owes AlliedBarton $39,000 in unpaid rental obligations. Bankruptcy Court Ruling The Court determined that the sublease is not a property of the estate. The Court ordered that effective Oct. 30, 2007, AlliedBarton is permitted to enter and possess the premises from the Debtor. The Debtor's property remaining in the premises will be transfered to a storage for the benefit of the estate. The Court further ordered that on or before Nov. 30, 2007, the Debtor should agree to take possession of the property or arrange for its storage at its own expense. In addition, to the extent that AlliedBarton removes and stores the Debtor's property, AlliedBarton will have an allowed administrative expense claim for the incurred costs. AlliedBarton will also not be held liable for any loss or damage resulting from the removal and storage of the property so long as it exercises with care. About European American Atlanta, Georgia-based European American Realty Ltd. is engaged in the real estate business. The Debtor filed for chapter 11 bankruptcy protection on Sept. 21, 2007 (Bankr. N.D. Ga. Case No. 07-75353). J. Robert Williamson, Esq. at Scroggins and Williamson represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $100 million. FAIRPOINT COMM: Accepts Verizon's Pick for Board of Directors ------------------------------------------------------------- Verizon has submitted the names of three designees to fill open seats on FairPoint Communications Inc.'s board of directors, which is called for in the merger agreement under which FairPoint has agreed to acquire Verizon's landline operations in Maine, Vermont and New Hampshire. The three designees are Robert A. Kennedy, president of the University of Maine; Michael R. Tuttle, president and chief executive officer of Merchants Bank; and Thomas F. Gilbane, Jr., chairman and chief executive officer of Gilbane Building Company. Mssrs. Gilbane, Kennedy and Tuttle will be appointed to the FairPoint board simultaneously with the closing of the acquisition. "These three designees, all from New England, will complement the depth, experience and commitment of our current board of directors," Gene Johnson, chairman and chief executive officer of FairPoint, said. "Like our lead director Bonnie Newman -- herself a northern New Englander who has years of leadership experience and association with professional groups within New England -- these designees are rooted in business, academia and finance." "Each of them will provide meaningful insight and wisdom, ably representing our largest service area, and acting in the best interests of our shareholders and customers. We look forward to their addition upon the close of the transaction," he concluded. Mr. Kennedy became the University of Maine's 18th president on April 15, 2005. He arrived at the university in 2000, first serving as vice president for academic affairs and provost, followed by an eight-month term as interim president. Mr. Kennedy graduated from the University of Minnesota-Twin Cities, in 1968. After service in the U.S. Army, he earned a Ph.D. in botany from the University of California-Berkeley. He has held numerous positions at colleges and universities across the country including the University of Iowa, Washington State University, The Ohio State University, the University of Maryland and Texas A&M University. President Kennedy is a corporator of Bangor Savings Bank and a volunteer with the Maine Special Olympics. Mr. Tuttle has been the president and CEO of Merchants Bank, a commercial bank with headquarters in Burlington, Vermont, since Jan. 1, 2006. He was the chief operating officer and senior lender of Merchants Bank from 1997 through 2005. He is also a director of Merchants Bancshares. Mr. Tuttle received a Bachelor of Arts degree in economics from St. Lawrence University in 1977, and is a long-time resident of South Burlington. Mr. Gilbane has served as chairman and CEO of Rhode Island-based Gilbane Building Company, a general contractor and construction manager, since Jan. 1, 2004. He has also served as vice president of Gilbane Inc., the parent company of Gilbane Building Company and Gilbane Development Company. He is a graduate of Harvard's Graduate School of Business Advanced Management Program. He also received a Master of Science degree in civil engineering from Massachusetts Institute of Technology and holds a Bachelor of Science/Bachelor of Arts degree in business management from Babson College. About FairPoint Communications Based in Charlotte, North Carolina, FairPoint Communications Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- provides communications services to rural and small urban communities across the country. Today, FairPoint owns and operates 30 local exchange companies located in 18 states offering an array of services, including local and long distance voice, data, Internet and broadband offerings. * * * FairPoint Communications Inc. carries to date Moody's Investor Services' "B1" probability of default and long term corporate family ratings, which were placed in January 2005 with a stable outlook. FIELDSTONE MORTGAGE: Loan Delinquencies Spurs Bankruptcy Filing --------------------------------------------------------------- Fieldstone Mortgage Corp. has filed for Chapter 11 protection in the U.S. Bankruptcy Court for the District of Maryland on Friday, citing loan payment lapses and credit market woes, according to various reports. In September, Fieldstone was the target of a lawsuit by Morgan Stanley over 72 mortgages worth $26.5 million that had no, or late, payments, Ben Mook of The Daily Record said. The company has trimmed its workforce from 1,000 employees to a mere 25 workers. The company's Website disclosed that Fieldstone has ceased accepting loan applications and funding mortgage loans. It also have ceased accepting applications for broker approvals. The company posted that it will continue to work with customers and brokers in providing them with information they have submitted to us during this difficult time. Joel I. Sher, Fieldstone's bankruptcy attorney, suggested that Fieldstone Mortgage and its parent Fieldstone Investment Corp. were acquired in July by subprime mortgage investor Credit-Based Asset Servicing and Securitization LLC, known as C-BASS. While the new owner acquired all of Fieldstone's outstanding stock, it did not take on its debts under the deal. The company's case summary and list of 20 largest unsecured creditors was reported in yesterday's Troubled Company Reporter. Headquartered in Columbia, Maryland, Fieldstone Mortgage Co. -- http://www.fieldstonemortgage.com/-- is a direct lender that offers mortgage loans for multiple credit situations in the United States. FISHER COMMS: Posts $533,000 Net Loss in Third Quarter of 2007 -------------------------------------------------------------- Fisher Communications Inc. disclosed its financial results for the three-month and nine-month periods ended Sept. 30, 2007. Net loss for the third quarter of 2007 was $533,000, compared to a net loss of $671,000 in the third quarter of 2006. In both years, third quarter net loss was comprised of continuing and discontinued operations. Third quarter 2007 loss from continuing operations was $601,000, compared to $784,000 for third quarter 2006, which included tax expense adjustments of $448,000 and $388,000, respectively, as a result of IRS audits of prior year federal tax returns. Discontinued operations reflect the after- tax operating results attributable to the Company's small-market radio stations sold or held for sale. In the second quarter of 2007, the Company sold one of the remaining six radio stations held for sale for $3.0 million. Income from discontinued operations includes a gain on the sale of $1.5 million (net of tax) for the nine months ending Sept. 30, 2007. Loss from continuing operations for the nine months ending September 30, 2007, was $1.2 million, compared to $779,000 for the same period of 2006. Including income from discontinued operations, consolidated net income was $478,000, compared to a net loss of $104,000 in the same period of 2006. Revenues for the third quarter of 2007 were $40.8 million, reflecting an increase of $2.1 million or 5% over the third quarter of 2006. For the nine months of 2007, total revenue increased $6.4 million, or 6%, compared to the same period of 2006. Television revenue increased $1.1 million, or 4%, in the third quarter of 2007, over the third quarter of 2006. Radio revenue increased $679,000, or 6%, in the same quarter-over-quarter period. On a year-to-date basis, television and radio revenue increased 5% and 3%, respectively, compared to the same period of 2006. Fisher Plaza revenue increased 19% in the third quarter and 28% in the first nine months of 2007, primarily as a result of increased average occupancy, rental rates and services fees compared to the same periods of 2006. Fisher Plaza occupancy was 96% as of Sept. 30, 2007. "The third quarter of 2007 continued our trend of revenue growth," Colleen B. Brown, president and chief executive officer of Fisher Communications, said. "The revenue increase was driven by Fisher's expanding efforts in Spanish-language television, increased broadcast advertising, increased rental income from Fisher Plaza, and an improved news performance. During the final quarter of the year, we will grow our Univision affiliated stations revenue and expand our Internet presence." At Sept. 30, 2007, the company's balance sheet showed total assets of $492.9 million and total liabilities of $254.9 million, resulting in a stockholders' equity of $238.0 million. Equity at Dec. 31, 2006, was $239.5 million. Headquartered in Seattle, Washington, Fisher Communications Inc. (NASDAQ: FSCI) -- http://www.fsci.com/-- is a communications company that owns or manages twelve full power and seven low power television stations and nine radio stations in the Pacific Northwest. The company owns and operates Fisher Pathways, a satellite and fiber transmission provider, and Fisher Plaza, a media, telecommunications, and data center facility located near downtown Seattle. * * * Standard & Poor's Ratings Services recently removed from CreditWatch and affirmed its ratings on TV broadcaster Fisher Communications Inc., including the 'B-' corporate credit rating. The outlook is positive. Standard & Poor's had originally placed the ratings on CreditWatch with positive implications on June 14, 2007. FNBA MORTGAGE: Declining Credit Support Cues S&P to Cut Rating -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the class M-3 mortgage pass-through certificates from FNBA Mortgage Loan Trust 2004-AR1 to 'B' from 'BB' and removed it from CreditWatch, where it was placed with negative implications on Oct. 25, 2007. Additionally, S&P affirmed its ratings on the remaining five classes from the same transaction. S&P downgraded class M-3 because current credit support has continued to decline and the projected credit support percentage is below the level required at the 'BB' rating category. As of the October 2007 remittance period, the six-month average loss totaled $96,440, up from the 12-month average loss of $60,697. Overcollateralization, excess interest, and subordination provide credit enhancement for this transaction. The series is 37 months seasoned, and O/C has been reduced by approximately $599,210 over the past 12 months. The affirmations reflect sufficient current and projected credit support percentages to maintain the current ratings, as reported during the October 2007 remittance period. The collateral for this series consists primarily of hybrid mortgage loans secured by first liens on one- to four-family residential properties. All of the loans were originated or purchased by FNBA Financial Corp. Rating Lowered and Removed from Creditwatch Negative FBNA Mortgage Loan Trust 2004-AR1 Mortgage pass-through certificates Rating ------ Class To From ----- -- ---- M-3 B BB/Watch Neg Ratings Affirmed FBNA Mortgage Loan Trust 2004-AR1 Mortgage pass-through certificates Class Rating ----- ------ A-1, A-2, A-3 AAA M-1 AA M-2 A FORD MOTOR: Strike Continues Despite Initial Wage Agreement ----------------------------------------------------------- The strike at Ford Motor Co.'s site in Vsevolozhsok, Russia, continues despite a meeting between company management and employees on Nov. 26, 2007, The Associated Press reports. According to union chief Alexei Etmanov, the management agreed in principle to raise wages, but did not disclose concrete figures, AP relates. "We haven't agreed on anything," Mr. Etmanov was quoted by the Associated Press as saying. Ford, meanwhile, said it would resume production today, Nov. 28, with non-striking employees working on single shift. "We are not going to comment on the management's intentions," Mr Etmanov commented. "Let them try to restart the assembly line, and we'll see. We are going to continue the strike." As reported in the Troubled Company Reporter on Nov. 23, 2007, workers launched an indefinite strike on Nov. 20, 2007, demanding higher wages and reduction of night shifts from March 2008. The strike halted the Ford Focus production line, RIA Novosri reports. According to reports, Ford's workers held a 19-hour strike on Nov. 6, 2007, after management repeatedly rejected their pay hike demands. They returned to work after a court ordered the union to postpone further action until Nov. 20, 2007. The Vsevolozhsk plant produced about 60,000 cars in 2006, mainly the Focus model, and plant officials have said they were hoping to increase production to 75,000 for 2007. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. FORD MOTOR: Kentucky State Approves $60 Mil. Investment Incentives ------------------------------------------------------------------ Ford Motor Company received final approval from the Kentucky Economic Development Finance Authority to a $60 million tax incentive package, smoothing the path for Ford to invest $200 million in the Kentucky Truck Plant on Chamberlain Lane, various papers report. The state has offered the package as part of a larger $200 million package, enticing Ford to cancel plans of shuttering the Kentucky Truck Plant and the Louisville Assembly Plant, Jere Downs of The Courier-Journal reports. The approval, sources say, came with the condition directing Ford to return some of the tax incentives if employment at the Kentucky Truck Plant falls below a 3,511-worker minimum by 2012. However, should Ford invest $100 million more in either plant, those penalties will be abolished. The Courier-Journal discloses, citing KEDFA staff member Steve Jones, that the state was hoping the move might instigate Ford to invest more on the Louisville Assembly Plant. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. FREMONT HOME: Fitch Lowers Ratings on $51.1 Million Certificates ---------------------------------------------------------------- Fitch Ratings has taken these rating actions on Fremont Home Loan Trust mortgage pass-through certificates, series 2005-1. Affirmations total $391.1 million and downgrades total $51.1 million. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Fremont Home Loan Trust 2005-1 -- $7.7 million class A affirmed at 'AAA' (BL: 99.60, LCR: 6.37); -- $108.1 million class M-1 affirmed at 'AA+' (BL: 85.48, LCR: 5.47); -- $80.1 million class M-2 affirmed at 'AA' (BL: 67.55, LCR: 4.32); -- $37.6 million class M-3 affirmed at 'AA-' (BL: 52.27, LCR: 3.34); -- $34.7 million class M-4 affirmed at 'A+' (BL: 50.26, LCR: 3.22); -- $40.5 million class M-5 affirmed at 'A' (BL: 41.42, LCR: 2.65); -- $31.8 million class M-6 affirmed at 'A-' (BL: 34.18, LCR: 2.19); -- $26.0 million class M-7 affirmed at 'BBB+' (BL: 28.10, LCR: 1.80); -- $24.1 million class M-8 affirmed at 'BBB' (BL: 22.40, LCR: 1.43); -- $19.3 million class M-9 downgraded to 'BB' from 'BBB-' (BL: 17.52, LCR: 1.12); -- $12.5 million class B-1 downgraded to 'BB-' from 'BB+' (BL: 14.12, LCR: 0.90); -- $19.3 million class B-2 downgraded to 'C/DR4' from 'BB' (BL: 10.45, LCR: 0.67). Deal Summary -- Originators: 100% Fremont Investment & Loan; -- 60+ day Delinquency: 32.79%; -- Realized Losses to Date (% of Original Balance): 1.28%; -- Expected Remaining Losses (% of Current Balance): 15.63%; -- Cumulative Expected Losses (% of Original Balance): 4.98%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. GPS INDUSTRIES: Sept. 30 Balance Sheet Upside-Down by $1 Million ---------------------------------------------------------------- GPS Industries Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $13.9 million in total assets and $14.9 million in total liabilities, resulting in a $1.0 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $9.9 million in total current assets available to pay $14.9 million in total current liabilities. The company reported a net loss of $3.53 million on total revenue of $988,887 for the third quarter ended Sept. 30, 2007, compared with a net loss of $3.48 million on revenue of $2.12 million in the same period last year. Revenue for the three-month period ended Sept. 30, 2007, decreased by approximately 53% compared to revenues during the three-month period ended Sept. 20, 2006, due to a significant decrease in the sale and installation of golf management systems in the 2007 period. Net loss for the three-month period ended Sept, 30, 2007, was substantially similar to the net loss in the 2006 three-month period even though the 2007 loss from operations was $1.2 million greater than the loss from operations in the 2006 three-month period. This was because the company's other losses, mostly in interest expense and derivative liability changes, were $1.1 million higher during the three-month period ended Sept. 30, 2006. 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?25ca Bank Line of Credit The company currently has a bank line of credit for $1,485,000 available to it to fund its operations. As of Sept. 30, 2007, the company had borrowed $1,196,000 under this line of credit. The line of credit is secured by a one year standby bank letter of credit for $1,500,000 that was provided by a third party, Hansen Inc. As consideration for renewing the standby bank letter of credit, the company issued to Hansen Inc. common stock purchase warrants to purchase 1,500,000 shares of common stock, exercisable at $0.10 per share for a period of three years. In addition, the company extended 2,000,000 previously issued warrants which expired in 2006 to expire in 2008 at a price of $0.05. Going Concern Doubt Sherb & Co. LLP, in New York, expressed substantial doubt about GPS Industries Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's significant losses and working capital deficiency. About GPS Industries Inc. Headquartered in Surrey, B.C. Canada, GPS Industries Inc. (OTC BB: GPSN.OB) -- http://www.gpsindustries.com/-- develops and markets GPS and Wi-Fi multimedia solutions to enable managers of golf facilities, resorts, and residential communities to improve operational efficiencies and generate significant new revenue streams. GS MORTGAGE: Fitch Holds 'BB+' Rating on $534 Mil. Class L Certs. ----------------------------------------------------------------- Fitch Ratings has affirmed GS Mortgage Securities Corporation II pass-through certificates series 2007-EOP as: -- $989.9 million class A-1 at 'AAA'; -- $584.8 million class A-2 at 'AAA'; -- $606.5 million class A-3 at 'AAA'; -- Interest only class X at 'AAA'; -- $370.3 million class B at 'AA+'; -- $432.3 million class C at 'AA' -- $220 million class D at 'AA-', -- $237.9 million class E at 'A+'; -- $214.7 million class F at 'A; -- $142.4 million class G at 'A-'; -- $142.4 million class H at 'BBB+'; -- $395 million class J at 'BBB'; -- $213.6 million class K at 'BBB-'; -- $534 million class L at 'BB+'. While the transaction has paid down 26% since issuance, no updated financial information is available and affirmations are warranted at this time. Fitch will review year end 2007 data as it becomes available. As of the October 2007 distribution date, the total collateral balance has reduced to $5.08 billion from $6.87 billion at issuance. This paydown includes two of the top ten mortgaged assets (15.9%): the Chicago portfolio (9.4%) and the Stamford, Connecticut properties (6.5%). The certificates are collateralized by a single $5.08 billion nonrecourse floating-rate loan secured by 110 office properties, down from $6.87 billion and 135 properties at issuance. The collateral includes mortgages, equity pledges in joint ventures and cash flow pledges. In addition, there is $2.4 billion of mezzanine debt held outside the trust. The largest property in the pool (15.3%) is the Verizon Building located across from Bryant Park in mid-town Manhattan. The property, which is 100% vacant, is undergoing major interior and exterior renovations while it is being converted into office space. The building is 76.2% pre-leased with occupancy anticipated to begin in the second quarter of 2008. The pool remains diverse, with 110 office properties located in 16 major metropolitan statistical areas. In addition, the pool is diverse by allocated principal balance with the top ten properties equal to 33.3% of the collateral balance (excluding the Verizon Building), with no single property comprising more than 4.8% of the collateral. Average occupancy at the properties as of September 2007 remains strong at 91.5% (excluding the Verizon Building) compared to 91% at issuance. HALO TECHNOLOGY: Committee Hires Weiser LLP as Financial Advisor ---------------------------------------------------------------- The Official Commitee of Unsecured Creditors in Halo Technology Holdings Inc. and its debtor-affiliates' Chapter 11 cases obtained authority from the U.S. Bankruptcy Court for the District of Connecticut to retain Weiser LLP as its accountant and financial advisor. As reported in the Troubled Company Reporter on Nov. 2, 2007, Weiser LLP is expected to: a) analyze the Debtors' financial operations from the petition date; b) analyze the Debtors' financial operations prior to the petition date; c) analyze and advise the Committee and its counsel in the development, evaluation and documentation of the financial aspects of any plan of reorganization or plan of liquidation proposed by the Debtors, or developed by the Committee, including developing, structuring and negotiating the terms and conditions of such plan and the consideration for the unsecured creditors, and prepare and submit reports to the members of the committee to aid them in evaluating the same; d) analyze and assess the Debtors' business operation, proposed business plan including compensation, retention and severance plans, assumptions/rejection of leases and executory contracts, proposed DIP financing agreements, proposed assets sale and sale procedures and verification of the physical inventory of merchandise, supplies and equipment and other material assets and liabilities; e) assist the Committee in its analysis of financial information including schedules of assets and liabilities, statement of financial affairs, monthly statements of operations; f) assist the Committee in its evaluation of cash flow and other financial projections prepared by the Debtors; g) evaluate the Debtors' cash management system and scrutinize cash disbursements for the period subsequent to the petition date; h) analyze transactions with insiders, related and/or affiliated companies; i) analyze transactions with Debtors' lenders; j) render expert testimony; k) attend meetings of creditors and confer with representatives of the creditor group, their counsel and representatives of the Debtors; l) analyze the Debtors' books and records of potential preferences, fraudulent conveyances and other potential prepetition investigations; m) prepare business valuations of the Debtor on a going concern basis; and n) perform other services that may be requested by the Committee. James Horgan, a partner at the Business Advisory and Recovery Services group of Weiser LLP, told the Court that the firm's professional rates are: Designation Hourly Rate ----------- ----------- James Horgan $395 Partners/Principals $350 - $540 Directors/Senior Managers $280 - $350 Assistants to Managers $125 - $300 Paraprofessionals $70 - $125 Mr. Horgan assured the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Greenwich, Connecticut-based Halo Technology Holdings Inc. fka Warp Technology Holdings Inc. -- http://www.haloholdings.com/-- is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). Lawyers at Zeisler & Zeisler P.C. serve as the Debtors' counsel. The U.S. Trustee for Region 2 appointed three creditors to serve on an Official Committee of Unsecured Creditors in this case. The Committee have selected the firm Pepe & Hazard LLP as its bankruptcy counsel. At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HALO TECHNOLOGY: Court Okays Morris Manning as Special Counsel -------------------------------------------------------------- The United States Bankruptcy Court for the District of Connecticut gave Halo Technology Holdings Inc. and its debtor-affiliates authority to employ Morris Manning & Martin LLP as their special counsel. As reported in the Troubled Company Reporter on Oct. 12, 2007, Morris, Manning will perform services in connection with litigation matters including the case on Cooper, et al., pending in the U.S. District Court for the Northern District of Georgia. Specifically, the Debtor requested that Lawrence H. Kunin, Esq., a partner in the Morris Manning & Martin LLP, represent three of the Debtors' officers in an Officer Lawsuit of Awald, et al. versus Rodney A. Bienvenue, Jude Sullivan and Ernest C. Mysogland. The Debtors related that the plaintiffs in the Officer Lawsuit are also plaintiffs in the Halo Lawsuit and the claims are substantially the same. However, Mr. Kunin will not represent the officers in connection with any indemnity claims they might hold against the Debtors. Mr. Kunin told the Court of the professionals' hourly rates: Professional Hourly Rates ------------ ------------ Lawrence H. Kunin, Esq., Partner $410 Heather C. Brady, Esq., Associate $335 Mr. Kunin related that the Debtor owed the firm approximately $25,886.69 for services rendered prior to bankruptcy filing. Mr. Kunin assured the Court that the firm represents no interest adverse to the Debtors or their estates and is "disinterested" as the term is defined in the Section 101(14) of the Bankruptcy Code. Mr. Kunin can be reached at: Morris Manning & Martin LLP 1600 Atlanta Financial Center 3343 Peachtree Road, NE Atlanta, GA 30326 Tel (404) 233-7000 Fax (404)365-9532 Greenwich, Connecticut-based Halo Technology Holdings Inc. fka Warp Technology Holdings Inc. -- http://www.haloholdings.com/-- is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). Lawyers at Zeisler & Zeisler P.C. serve as the Debtors' counsel. The U.S. Trustee for Region 2 appointed three creditors to serve on an Official Committee of Unsecured Creditors in this case. The Committee have selected the firm Pepe & Hazard LLP as its bankruptcy counsel. At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HALO TECHNOLOGY: Hires David Rubin as Special Litigation Counsel ---------------------------------------------------------------- The United States Bankruptcy Court District of Connecticut gave Halo Technology Holdings Inc. and its debtor-affiliates authority to employ the Law Offices of David W. Rubin as their special litigation counsel. The firm is expected to perform services inconnection with litigation matters, including, the case captioned Halo Technology Holdings Inc. fka Warp Technology Holdings v. Cooper (Docket No. 07:CIV 3426 PKC) pending before the U.S. Bankruptcy Court for the Southern District of New York. David W. Rubin, Esq., will bill $350 per hour, while Andrew J. Soltes, Jr., Esq., charges $225 per hour for this engagement. To the best of the Debtors' knowledge the firm does not hold any interest adverse to the Debtors' estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Court. Mr. Rubin can be reached at: David W. Rubin, Esq. Law Offices of David W. Rubin 600 Summer Stree, Suite 201 Stamford, CT 06901 Tel: (203) 353-1404 Fax: (203) 357-7208 Greenwich, Connecticut-based Halo Technology Holdings Inc. fka Warp Technology Holdings Inc. -- http://www.haloholdings.com/-- is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). Lawyers at Zeisler & Zeisler P.C. serve as the Debtors' counsel. The U.S. Trustee for Region 2 appointed three creditors to serve on an Official Committee of Unsecured Creditors in this case. The Committee have selected the firm Pepe & Hazard LLP as its bankruptcy counsel. At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HARRISBURG AUTHORITY: Defaults on $84 Million Retrofit Bond ----------------------------------------------------------- Harrisburg Authority failed to make $3.1 million bond payment on the city's incinerator which was due Monday noon, Clear Channel Broadcasting reports. The missed payment triggered a default on the Authority's $84 million retrofit bond, Eric Veronikis writes for the Central Penn Business Journal. Last week, Central Penn says, the City Council had permitted the Authority to loan $30 million, to which the Dauphin County Commissioners agreed to act as second guarantor upon certain conditions. However, Authority chairman and chief executive officer James E. Ellison says, the Commissioners' conditions were unacceptable since they will jeopardize the "independence and autonomy of the [A]uthority", Central Penn relates. The Commissioners proposed that the Authority ask for their permission for any expenditures beyond $250,000, Central Penn says, citing Mr. Ellison. INTERACTIVE MOTOR: Sept. 30 Balance Sheet Upside-Down by $4.2 Mil. ------------------------------------------------------------------ Interactive Motorsports & Entertainment Corp.'s consolidated balance sheet at Sept. 30, 2007, showed $1,792,718 in total assets and $5,984,685 in total liabilities, resulting in a $4,191,967 total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $778,968 in total current assets available to pay $4,264,289 in total current liabilities. The company reported net income of $39,291 on total revenues of $1,056,796 in the third quarter ended Sept. 30, 2007, compared with a net loss of $317,585 on total revenues of $921,026 in the same period of 2006. The improvement in total revenues mainly reflects increased store sales and simulator sales in the three month period ending Sept. 30, 2007. The company's profit from operations during the three months ended Sept. 30, 2007, was $211,394 compared to an operating loss during the three months ended Sept. 30, 2006, of $166,413. 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?25cb About Interactive Motorsports Headquartered in Indianapolis, Indiana, Interactive Motorsports & Entertainment Corp. (OTC BB: IMTS) through its wholly owned subsidiary, Perfect Line Inc., manufactures two versions of race car simulators and sells racing experiences to the public through revenue sharing and marketing agreements for the "out-of-home" interactive gaming market. INVERNESS MEDICAL: Acquiring ParadigmHealth Inc. for $230 Million ----------------------------------------------------------------- Inverness Medical Innovations Inc. has entered into a definitive agreement to acquire ParadigmHealth Inc. The transaction is structured as an all cash deal, with a purchase price of approximately $230 million. "The acquisition of ParadigmHealth is a significant step in our strategy to become a leader in disease and health management services," Ron Zwanziger, CEO of Inverness stated. "When combined with our prior acquisitions of QAS and Alere, ParadigmHealth will contribute to our goal of enabling individuals to manage their health effectively." "We're very pleased to be joining the Inverness family of companies because our objectives are the same: to help patients, their families, and their physicians make better health choices and to improve care by providing information, coaching support, and advanced technologies. Our focus on the high acuity complex patient and our decision support technology will be a perfect complement to the products and services of Inverness and its new subsidiary Alere," John Penrose, CEO of ParadigmHealth, added. Closing is conditioned on clearance under the Hart-Scott Rodino Act, approval by ParadigmHealth's stockholders, and other customary closing conditions. Inverness was represented by Goodwin, Procter and advised by Covington Associates, LLC; ParadigmHealth was represented by Orrick, Herrington and advised by UBS Securities LLC. About Paradigm Inc. Headquartered in New Jersey, ParadigmHealth Inc. -- http://www.paradigmhealth.com/-- is a provider and integrator of care and disease management services for health plans and employers. The company's care management services and innovative technologies work in concert to improve quality and lower costs by matching the appropriate information and intervention with the individual needs of patients and families. ParadigmHealth's services focus on the management of premature and medically complex neonates and patients with late- stage cancer, end-of-life care issues, multiple co-morbidities, and severe trauma. About Inverness Medical Based in Waltham, Massachusetts, Inverness Medical Innovations Inc. (AMEX: IMA) -- http://www.invernessmedical.com/-- develops, manufactures and markets in vitro diagnostic products for the over-the-counter pregnancy and fertility/ovulation test market and the professional rapid diagnostic test markets. * * * Moody's placed Inverness Medical's subordinated debt rating at 'Caa1' as well as the company's long term corporate family and probability of default ratings at 'B2' in June 2007. The ratings still hold to date with a stable outlook. JAYS FOODS: $25,400,000 La Salle DIP Pact Gets Final Court Okay --------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois gave Jays Foods Inc. and Select Snacks Inc. authority, on a final basis, to access up to $25,400,000 of the postpetition financing provided by La Salle Business Credit LLC. The DIP facility will accrue interest on the outstanding principal amount at a rate equal to the prime rate plus 2%. As adequate protection, the Debtors grant La Salle valid, binding, enforceable and perfected liens in all of their assets. Asset Sale Part of the DIP Agreement is the sale of the Debtors' business. Prior to bankruptcy filing, the Debtors signed an asset purchase agreement for the sale of its business to Jay's Acquisition Inc. Jay's Acquisition offered $24,850,000 for the assets, subject to certain adjustments. In addition, Jay's bid provides that, from the $24,850,000 purchase price, $1,650,000 will be paid to the Debtors' bankruptcy estates to satisfy liabilities and obligations of the estates. LaSalle consented to the proposed sale and agreed to make a loan available to the Debtors. LaSalle also agreed that if a closing occurs, LaSalle will pay, from closing proceeds, all accrued, postpetition, unpaid wage claims of the Debtors' employees. Pursuant to the Court's final order, deadline for submission of qualified bids on the assets are due at 11:00 a.m. today, Nov. 28, 2007. Auction of the assets will be held at 11:00 a.m. on November 30. The hearing to consider approval of the results of the public sale was set for December 4 at 10:30 a.m. About Jays Foods Chicago-based Jays Foods Inc. -- http://www.jaysfoods.com/-- wholesales confectionery products and manufactures snack chip products. Jays Foods leases real property, and owns certain equipment, in Chicago, Illinois where it operates a manufacturing facility that makes snacks mostly under the Jays, O-KE-DOKE and Krunchers brand names. Jays is 100% owned by Jays Holding Company, Inc. The company, then known as Jays Food LLC, first filed for chapter 11 protection on March 5, 2004 (Bankr. N.D. Ill. Case No. 04- 08681). David Missner, Esq., Marc I. Fenton, Esq. and Thomas Zwartz, Esq. at Piper Rudnick LLP were counsels to the Debtor. In the March 2004 case, a Section 363 sale took place and most of the assets of former Jays Foods were sold to Jays Foods Acquisition Inc., predecessor to Jays Foods Inc. The March 2004 case was closed on or about March 9, 2007. Select Snacks Inc., on the other hand, owns real property, improvements and equipment in Jeffersonville, Indiana where it operates a manufacturing facility that makes private label and co- manufactured snacks for its customers. Select Snacks is 100% owned by Select Snacks Holdings Company, Inc. Both Select Holding and Jays Holding are 100% owned by Ubiquity Brands LLC. As of the Oct. 11, 2007, the Debtors had approximately 943 employees of which Select has 262 (211 union employees and, 51 non-union employees) and Jays has 681 total employees (236 union employees and 445 non-union employees). Jays Foods and Select Snacks filed voluntary chapter 11 petitions on Oct. 11, 2007 (Bankr. N.D. Ill. Case Nos. 07-18768 and 07-18769). Mark K. Thomas, Esq., Brian I. Swett, Esq., Jeremy T. Stillings, Esq., Myja K. Kjaer, Esq., at Winston & Strawn LLP, represent the Debtors. Kurtzman Carson Consultants LLC serve as their notice, claims and balloting agent. When they sought protection from their creditors, they listed assets and debts between $10 million and $50 million. JOHNSON JUNCTION: Case Summary & 26 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Johnson Junction, Inc. P.O. Box 100 Dillard, GA 30537 Bankruptcy Case No.: 07-22470 Debtor-affiliate filing separate Chapter 11 petition: Entity Case No. ------ -------- J. William Johnson 07-22468 Chapter 11 Petition Date: November 26, 2007 Court: Northern District of Georgia (Gainesville) Judge: Robert Brizendine Debtors' Counsel: M. Denise Dotson, Esq. Jones & Walden, LLC 21 Eighth Street, Northeast Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million A. Johnson Junction, Inc.'s list of its 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Manning Gros Equipment Co. Loan $52,874 21 Sandy Creek Drive Athens, GA 30607 Rabun County Tax Commissioner Ad Valorem Taxes $34,579 25 Courthouse Square Suite 149 Clayton, GA 30525-4114 Financial Pacific Leasing $24,932 3455 South 344th Way, Suite 300 Federal Way, WA 98001 Regions Bank Loan $14,098 CitiBusiness Card Credit Card $4,009 Downs & Colquitt, P.C. $3,129 Glooboo, Ltd. $1,926 North Georgia Processing, Inc. $1,800 Frantz Grattan Delaoch, LLP $1,462 S&D Coffee $1,345 Macon County News $1,317 Rabun's Laurel, Inc. $1,212 Avaya Financial Services Business Lease $1,000 Galloway Design, Ltd. $600 B. J. William Johnson's list of its 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Option One Mortgage 4 Rose Circle $262,581 P.O. Box 44042 Clayton, GA Secured: Jacksonville, FL 32231-4042 Unknown Joyce Alexander 4 Rose Circle $65,173 134 Cinquapai Clayton, GA Secured: Sunset, SC 29685 Unknown Senior Lien: $262,581 Rabun County Tax Commissioner Ad Valorem Taxes $1,726 25 Courthouse Square Suite 149 Clayton, GA 30525-4114 Property Taxes $11,545 Macy's Credit Card $12,029 American Express - Dallas Credit Card $12,000 Discover Financial Services Credit Card $9,481 Bank of America - Baltimore Credit Card $6,983 Bank of America - Wilmington Credit Card $5,548 American Express - Ft. Lauderdale Credit Card $3,432 Downs & Colquitt, P.C. $1,825 Capital One Credit Card $867 Chase Cardmember Service Credit Card $713 JUAN GARCIA: Case Summary & 4 Largest Unsecured Creditors --------------------------------------------------------- Lead Debtor: Juan Antonio Garcia Monica Jeannette Garcia dba Garcia Flooring Service dba Garcia Graphic Design 2700 Hoffman Lane Byron, CA 94514 Bankruptcy Case No.: 07-44032 Chapter 11 Petition Date: November 26, 2007 Court: Norther District of California (Oakland) Judge: Randall J. Newsome Debtor's Counsel: Marc Voisant, Esq. Law Offices of March Voisant 1330 Broadway #1035 Oakland, CA 94612 Tel: (510) 272-9710 Estimated Assets: $10,000 Estimated Debts: $1million to $100 million Debtor's 4 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Citi Cards $19,268 P.O. Box 6404 The Lake, NV 88901-6404 American Express $11,417 Box 0001 Los Angeles, CA 90096-0001 Washington Mutual $4,943 c\o LC System Inc. 444 Highway 96 East P.O. Box 64887 St. Paul, MN 55164-0887 Home Depot $4,569 P.O. Box 6028 The Lakes, NV 88901-6028 KESSLER HOSPITAL: Court Confirms Chap. 11 Plan of Reorganization ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey confirmed William B. Kessler Memorial Hospital Inc.'s Fourth Amended Chapter 11 Plan of Reorganization. The Disclosure Statement explaining that Plan was approved by the Court on Oct. 22, 2007. Under the Plan, the secured claim of Northern Healthcare Capital Inc. will be paid in accordance with a final order approving the Debtors' postpetition financing. The secured claims of creditors holding liens on equipment under Class 2 will be entitled to separate treatment and voting rights, according to their respective subclasses: Class 2A -- Central Atlantic Leasing's claim will be paid $1,000,000 over 120 months in equal monthly installments with interest at 7% per annum. Class 2B -- Abbot Labs' claim will be paid the value of its collateral over 60 months with interest at 7% per annum. Class 2C -- Sensory Management Services LLC's claim will be paid the value of its collateral over 60 months with interest at 7% per annum. Berenato & Pullia and Mar-Dor Building's secured claim for a property located at 936 Central Avenue, in Hammonton, New Jersey, will be treated pursuant to a consent order the claim holder executed with the Debtors. Pursuant to the Consent Order, the Debtor will provide monthly payments to Berenato & Pullia in the amount of $684 through confirmation of the Debtors' Plan. After confirmation, the Debtor will pay off the remaining balance due and owing on the property in the amount of $97,770 and will hold onto the property for future expansion of the hospital. The priority claims of creditors with non-union, non-taxing authority employee related claims, approximately totaling $202,435, will be paid over 12 months in equal monthly installments with interest at 7% per annum commencing on the effective date of the Plan sufficient to fully satisfy the priority portion of the claim. In addition, there is an administrative claim for postpetition 403(b) match contributions in the amount of $338,000, which will be paid on the effective date of the Plan. Any non-priority portion of the claim in the approximate amount of $551,000 will be treated as a class 7 general unsecured claim. These claims will receive payments over 12 months in equal monthly installments with interest at 7% per annum commencing on the effective date of the Plan sufficient to fully satisfy the priority portion of the claim: 1) Local 1199C's claims, which consist of unpaid prepetition health and welfare payments of approximately $400,354; and 2) the Class 6 Claim of JNESO and the National Labor Relations Board pursuant to a collective bargaining agreement with the Debtor which arose prepetition. Any non-priority portion of both claim classes will be treated as a class 7 general unsecured claim. Holders of unsecured claims under Class 7 will receive pro-rata distributions from six annual payments of $250,000, which the Debtors will make to the distribution trustee, commencing on Dec. 31, 2008. A full-text copy of the Fourth Amended Plan is available for a fee at: http://www.researcharchives.com/bin/download?id=071127040746 A full-text copy of the Fourth Amended Disclosure Statement is available for a fee at: http://www.researcharchives.com/bin/download?id=071127040628 Based in Hammonton, New Jersey, William B. Kessler Memorial Hospital, Inc. -- http://www.kesslerhospital.org/-- is a non- profit corporation that operates a hospital. The Company filed for chapter 11 protection on Sept. 13, 2006 (Bankr. D. N.J. Case No. 06-18680). Albert A. Ciardi, III, Esq., at Ciardi & Ciardi, P.C., represents the Debtor in its restructuring efforts. Carol A. Slocum, Esq., at Klehr Harrison Harvey Branzburg & Ellers, represents the Official Committee of Unsecured Creditors. As of its bankruptcy filing, the Debtor disclosed total assets of $5,906,300 and total liabilities of 12,602,600. KING PHARMA: Posts $41 Million Net Loss in Third Quarter of 2007 ---------------------------------------------------------------- King Pharmaceuticals Inc. reported net loss of $41 million during the third quarter of 2007, compared to net earnings of $90 million in the third quarter of the prior year. Excluding merger and restructuring expenses; non-capitalized expenses associated with acquisitions, such as in-process research and development charges and one-time inventory valuation adjustment charges; charges resulting from the early extinguishment of debt; asset impairment charges; expenses of drug recalls; and gains and losses resulting from the divestiture of assets, net earnings equaled $128 million during the third quarter ended Sept. 30, 2007, compared to net earnings of $106 million in the third quarter of 2006. "We are pleased with the company's continued strong quarterly revenue and cash flow from operations," Brian A. Markison, chairman, president and chief executive officer of King, stated. "In light of recent developments, we have moved quickly to accelerate our planned strategic shift to emphasize our neuroscience, hospital and acute care medicine platforms. As a result, we recorded a number of special items in the third quarter. This included a restructuring of our organization, particularly our sales force, to best support our strategic priorities." "Consistent with the strategic shift initiated in 2005, we have sharpened our focus on specialty driven markets where we have a strong presence and a demonstrated commitment to meeting the needs of our customers," Mr. Markison added. "By leveraging King's solid financial position, we will continue to enhance our presence in our targeted markets and opportunistically expand into other attractive specialty markets. Our recently announced alliance with Acura Pharmaceuticals to develop and commercialize ACUROX(TM) Tablets and other products utilizing Acura's Aversion(R) Technology platform exemplifies this strategy, significantly strengthening King's pain management franchise." "We are confident that our focus on specialty driven markets will maximize King's potential for long-term growth, enabling us to deliver on the expectations of our shareholders," Mr. Markison concluded. As of Sept. 30, 2007, the company's cash and cash equivalents and investments in debt securities totaled approximately $1.1 billion. The company generated cash flow from operations of $174 million during the third quarter of 2007. At Sept. 30, 2007, the company's balance sheet showed total assets of 3.4 billion, total liabilities $ 0.9 billion and total shareholders' equity $2.5 billion. About King Pharmaceuticals Headquartered in Bristol Tennessee, King Pharmaceuticals Inc. (NYSE:KG) develops, manufactures and markets branded prescription pharmaceutical products. The company's strategy includes life- cycle management of existing products, new product development, and product acquisitions and collaborations. * * * As reported in the Troubled Company Reporter on Nov. 22, 2007, Moody's Investors Service assigned a Ba3 rating to the senior secured credit facility of King Pharmaceuticals, Inc. Moody's also affirmed King's Ba3 Corporate Family Rating. The outlook for the ratings remains stable. LAFAYETTE NEIGHBORHOOD: Court Sets Pre-Trial Conference on Dec. 11 ------------------------------------------------------------------ The Honorable Robert E. Grant of the U.S. Bankruptcy Court for the Northern District of Indiana will hold a pre-trial conference in the bankruptcy case of Lafayette Neighborhood Housing Services at 11:40 a.m. on Dec. 11, 2007. The scheduled pre-trial conference is regarding a motion for relief from stay and abandonment filed on Nov. 8, 2007, by First Financial Bank N.A. At that hearing, the parties will discuss: (a) the simplification of the issues; (b) the necessity or desirability of amendments to the pleadings; (c) the possibility of obtaining admissions of fact, documents and other matters which will avoid unnecessary proof; (d) the possibility of submitting this matter to voluntary mediation or other form of alternative dispute resolution; (e) whether or not this is a core or non-core proceeding and, if non-core, whether or not the parties consent to the bankruptcy judge hearing and determining the matter; and (f) any other matters which may aid in the disposition of the controversy. As a result of a pre-trial conference, the Court may limit the time to complete discovery or to file pre-trial motions; set a date for any final pre-trial or other conference; establish a schedule for the filing of any proposed pre-trial order, stipulations or lists of witnesses and exhibits; and set a trial date. The schedule established as a result of the pre-trial conference will not be modified except by leave of Court upon a showing of good cause. About Lafayette Neighborhood 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. LAFAYETTE NEIGHBORHOOD: Excuse Motion Hearing Set for December 12 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Indiana will hear Lafayette Bank and Trust Company and the State Court appointed Receiver, Lafayette-West Lafayette Development Corporation's joint motion to excuse Receiver from turning over property pursuant to Section 543(d)(1) of the Bankruptcy Code at 1:20 p.m. on Dec. 12, 2007, at Charles Halleck Federal Building. Receivership at Tippecanoe Circuit Court On Aug. 24, 2007, the Bank filed a complaint for foreclosure of mortgages and on note regarding the 43 properties with the Tippecanoe County Circuit Court. At that time, the Bank was owed principle sum of $3,798,958, plus accrued interest as of Oct. 26, 2006 in the amount of $63,440. Interest accrued on the note from Oct. 26, 2006 until the Debtor's bankruptcy filing on Oct. 12, 2007 was at the rate of $754 per day. On Sept. 17, 2007, the Tippecanoe Circuit Court appointed Lafayette Development as Receiver of the 43 properties and Jeffrey J. Newell, Esq. was appointed attorney for the receiver. Since its appointment, the Receiver has received offers to purchase the 43 properties. The Bank and the Receiver relate that the interests of the Debtor's creditors would be better served through the continuation of the receivership action for these reasons: a. there is a high probability that Debtor has no equity in these Properties and the Properties are not necessary for its reorganization; b. the Debtor has no intention of using the Properties and has abandoned and canceled insurance on the Properties; c. the sale of the Properties can be best handled in a forum other than the Bankruptcy Court, in this case the Circuit Court of Tippecanoe County; d. the Receiver has the ability to best protect the interests of the Bank and all creditors; e. since the Debtor is insolvent and a not-for-profit corporation, the interests of its equity security holders are irrelevant to a determination as to whether the Receivership should continue. As reported in the Troubled Company Reporter on Nov. 27, 2007, the Bank and the Receiver, jointly sought Court authority to abandon 43 properties from the Debtor's bankruptcy cases. According to the Bank and the Receiver, this abandonment will allow the receivership to continue in the Tippecanoe County Circuit Court so that the properties can be sold through receivership and the proceeds be applied to the bank's mortgage lien and the surplus paid over to the estate. The Bank and the Receiver told the Court that the 43 properties have inconsequential value and burdensome to the estate. The Bank's mortgage lien as of the bankruptcy filing is more than $3,900,000 and the value of the properties is less than $3,000,000. James R. Schrier, Esq., represents Lafayette Bank and Trust Company. About Lafayette Neighborhood 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. LAKE MARTIN: Section 341(a) Meeting Scheduled for December 6 ------------------------------------------------------------ The Administrator for the U.S. Bankruptcy Court for the Middle District of Alabama will convene a meeting of creditors of Lake Martin Partners LLC at 1:00 p.m. on Dec. 6, 2007. This is the first meeting of creditors pursuant to Section 341 of the Bankruptcy Code. All creditors are invited, but not required to attend. The Official Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question under oath a responsible officer of the Debtor. Dothan, Alabama-based Lake Martin Partners LLC owns an 18 acre condominium development project on Lake Martin in Tallapoosa County, Alabama. The Debtor filed for chapter 11 bankruptcy on Oct. 19, 2007 (Bankr. M.D. Al. Case No. 07-11470). Cameron A. Metcalf, Esq., at Espy & Metcalf & Espy PC represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy it listed assets and debts between $1 million and $100 million. LAKE MARTIN: Administrator Forms Six-Member Creditors Panel ----------------------------------------------------------- Upon the recommendation of Teresa A. Jacobs, Bankruptcy Administrator for the Middle District of Alabama, the U.S. Bankruptcy Court for the Middle District of Alabama approved the appointment of six creditors who will serve on an official committee of unsecured creditors in Lake Martin Partners LLP's bankruptcy case. The members of the Committee are: 1. EAS Contractors, Inc. c/o Shuman Sohrn Seyfarth Shaw LLP 1545 Peachtree Street, Suite 700 Atlanta, GA 30309 Tel: (404) 885-1500 2. Scott Hunter c/o Mark Treadwell 129 West Columbus Street Dadeville, AL 36853 Tel: (706) 716-5784 3. James Coker 648 Westbrook Road Dothan, AL 36303 Tel: (334) 794-0521 4. Julie George- Howell 1512 W. Main Street Dothan, Alabama 36301 Tel: (334) 790-4095 5. Lewis A. Hunt 36 Foxchase Drive Dothan, Alabama 36305 Tel: (334)333-3436 6. Mark and Jamie Shertzer 25 Harrington Lane Dothan, Alabama 36305 Tel: (334) 793-3637 Any committee member appointed who is unwilling to serve upon the committee is requested to notify the Court in writing not more than 20 days after the entry of this order or Nov. 14, 2007. Dothan, Alabama-based Lake Martin Partners LLC owns an 18 acre condominium development project on Lake Martin in Tallapoosa County, Alabama. The Debtor filed for chapter 11 bankruptcy on Oct. 19, 2007 (Bankr. M.D. Al. Case No. 07-11470). Cameron A. Metcalf, Esq., at Espy & Metcalf & Espy PC represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy it listed assets and debts between $1 million and $100 million. LAKE MARTIN: Files Schedules of Assets and Liabilities ------------------------------------------------------ Lake Martin Partners LLP submitted to the U.S. Bankruptcy Court for the Middle District of Alabama its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $14,000,000 B. Personal Property 140,003 C. Property Claimed - as Exempt D. Creditors Holding $25,186,870 Secured Claims E. Creditors Holding 1,960,417 Unsecured Priority Claims F. Creditors Holding 689,434 Unsecured Nonpriority Claims ----------- ------------ TOTAL $14,140,003 $27,836,721 Dothan, Alabama-based Lake Martin Partners LLC owns an 18 acre condominium development project on Lake Martin in Tallapoosa County, Alabama. The Debtor filed for chapter 11 bankruptcy on Oct. 19, 2007 (Bankr. M.D. Al. Case No. 07-11470). Cameron A. Metcalf, Esq., at Espy & Metcalf & Espy PC represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy it listed assets and debts between $1 million and $100 million. LEVITT AND SONS: Banking Parties Object to Cash Collateral Use -------------------------------------------------------------- Bank of America, N.A., KeyBank National Association and Wachovia Bank, National Association, separately filed with the U.S. Bankruptcy Court for the Southern District of Florida their objections to the final order given by the Honorable Raymond B. Ray governing the Levitt and Sons LLC and its debtor-affiliates' use of cash collateral and requested adequate protection. On Nov. 14, 2007, the Court entered an interim order authorizing the Debtors for limited use of cash on hand until the final hearing on the Debtors' request. Pursuant to the interim order, the Debtors will not use the proceeds of the postpetition sales of any property that is collateral of the Debtors' prepetition lenders, absent consent of the lenders. Objections 1) BOA Between 2003 and 2006, BOA and eight Debtors -- Levitt and Sons, LLC, Levitt and Sons of Lake County, LLC, Levitt and Sons of Seminole County, LLC, Levitt and Sons Osceola County, LLC, Levitt and Sons at Hawks Haven, LLC, Levitt Construction-East, LLC, Levitt and Sons at Hunter's Creek, LLC, and Levitt and Sons of Flagler County, LLC -- entered into various agreements, wherein BOA agreed to loan funds and make advances to the BOA Debtors in exchange for promises of repayment and various guarantees. As security for their obligations under the Loan Agreements, the BOA Debtors granted the bank first-priority security interests in numerous parcels of real property and the proceeds from the sale of the real property. The security interests were timely and properly perfected through the filing and, where necessary, recording of financing statements mortgages and all other appropriate perfection documents. Craig Rasile, Esq., at Hunton & Williams LLP, in Miami, Florida, relates that, as of the date of bankruptcy, the BOA Debtors remained in default under the Loan Agreements, owing BOA in excess of $103,000,000, plus interest, fees, costs and other charges, which continue to accrue on a monthly basis. BOA has reserved its right to accelerate the loan in accordance with the Loan Agreements in a November 1, 2007 notice of default to the BOA Debtors. In the Debtors' Cash Collateral Motion, they offered BOA replacement liens on "all post-petition property that is of the same nature and type" as BOA's prepetition collateral as adequate protection for the use of BOA's cash collateral. In its Interim Order, the Court did not permit the Debtors to use the proceeds of postpetition sales of "any property that is the collateral" of BOA without the bank's specific consent. BOA was also granted adequate protection in the form a replacement lien on all of the Debtors' postpetition property of the same nature and type as BOA's prepetition collateral. To the extent that the Debtors' Cash On Hand includes proceeds of the bank collateral, BOA objects to the Debtors' use of its cash collateral for use in connection with the maintenance or improvement of property of the Debtors, which is secured by first priority prepetition liens or postpetition replacement liens of other lenders. BOA insists that the Debtors should produce a complete accounting of the Cash On Hand, so the bank can determine which Debtors intend to use the BOA cash collateral. BOA further seeks from the Debtors adequate protection going forward of its security interests in its cash collateral to the extent the Debtors seek to use that collateral. 2) KeyBank KeyBank National is a secured creditor of Levitt and Sons, LLC, Levitt and Sons of Hernando County, LLC, Levitt and Sons of Lee County, LLC, and Levitt and Sons at Tradition, LLC. KeyBank entered into a revolving land acquisition, development and residential construction base facility agreement, as amended, with LAS on Au. 9, 2005. The Facility Agreement is evidenced by a revolving loan promissory note payable to the order of KeyBank in the maximum principal amount of $75,000,000. The Note was renewed and increased to the maximum principal amount of $125,000,000 in April 2006. As of the Petition Date, the Debtors owe KeyBank roughly $96,000,000. To secure these obligations, KeyBank holds property perfected, first priority liens certain of the Debtors' assets, which consist primarily of parcels of residential real property in various stages of development and construction. During the first-day hearings, KeyBank raised its objections to the Debtors' use of its cash collateral because the Debtors did not come forward with the information necessary to allow any lender to determine how much cash collateral was being held by the Debtors and which lender's property was to be improved by the interim use of cash collateral. Based on KeyBank's objection, the Court instructed the Debtors to provide the information to lenders by November 20. Phillip M. Hudson, III, Esq., at Arnstein & Lehr LLP, in Miami, Florida, says that although the information was provided in part, the information provided is still insufficient to allow the lenders a complete picture of the cash collateral on hand and the amounts the Debtors intend to spend and on what property. Thus, KeyBank continues to object to the use of its cash collateral on a final basis, as requested by the Debtors, for any reason at any time other than for the limited purposes of maintaining, securing and protecting the KeyBank Collateral until further Court Order. KeyBank also asks the Debtors to provide it a complete accounting of the specific source of the cash on hand in all accounts as of the bankruptcy filing date. 3) Wachovia Wachovia informs the Court that it has made loans to certain of the Debtors, whose indebtedness currently exceeds $100,000,000. According to the bank, the Indebtedness is secured by, inter alia, first priority liens on real and personal property of the Debtors and on various projects in Florida, Georgia and South Carolina. To the extent the Debtors seek to use proceeds of postpetition sales that constitute its collateral, Wachovia preserves its right to formally object to the Cash Collateral Motion. 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. (Levitt and Sons Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) LEVITT AND SONS: Wants to Deliver Release of Resale Restriction --------------------------------------------------------------- Levitt and Sons LLC and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of Florida to continue providing releases to homeowners from the restriction from selling homes within 18 months following their purchase in the ordinary course of business. Before the Debtors' filing for bankruptcy, the predecessor to Levitt and Sons, LLC, also then known as "Levitt and Sons," was the nation's first builder of planned suburban communities, built approximately 200,000 homes. Today, LAS develops single and multi-family home communities for active adults and families in Florida, Georgia, Tennessee and South Carolina. As part of contracts for the construction and purchase of homes, some or all of the Debtors required that a Deed Restriction be recorded as an exhibit to the Deed transferring title to the home buyer which, inter alia, prohibits or restricts the homeowners resale of the home for a period of 18 months after his purchase of the home. Jordi Guso, Esq., at Berger Singerman, P.A., in Miami, Florida, relates that before the bankruptcy filing, the Debtors released or terminated the Restriction, in the exercise of their business judgment. Mr. Guso asserts that the Restriction is intended to prevent the "flipping" of houses by investors. The Deed Restriction, however, provided that under certain "Hardship Exceptions," the seller may release the homebuyer from the Restriction, he says. 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. (Levitt and Sons Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) LEXINGTON RESOURCES: Sept. 30 Balance Sheet Upside-Down by $3.4 M. ------------------------------------------------------------------ Lexington Resources Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $4,288,217 in total assets and $7,738,362 in total liabilities, resulting in a $3,450,145 total shareholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $372,612 in total current assets available to pay $7,738,362 in total current liabilities. The company reported a net loss of $8,660,976 on revenues of $115,589 for the third quarter ended Sept. 30, 2007, compared with a net loss of $27,854 on revenues of $991,672 in the same period a year ago. Drilling and service revenue of $955 declined from $838,309 during the same period in 2006 resulting from the sale of the company's drilling rig. Oil and gas revenue of $114,634 decreased from $153,363 during the same period in 2006 resulting from a decrease in volume of gas sold. During the three-month period ended Sept. 30, 2007, the company incurred operating expenses in the aggregate amount of $8,427,090 compared to $1,333,909 incurred during the three-month period ended Sept. 30, 2006. The increase in operating expenses incurred during the three-month period ended Sept. 30, 2007, compared to the three-month period Sept. 30, 2006, resulted primarily from the recording of $8,000,000 in impairment of oil and gas properties. 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?25cc Going Concern Doubt As reported in the Troubled Company Reporter on May 25, 2007, Whitley Penn L.L.P., in Dallas, Texas, expressed substantial doubt about Lexington Resources Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The company has a working capital deficiency of $7,365,750 at Sept. 30, 2007, has incurred losses since inception of $40,152,709 and further losses are anticipated in the development of its oil and gas properties. About Lexington Resources Headquartered in Las Vegas, Lexington Resources Inc. (OTC BB: LXRS) -- http://www.lexingtonresources.com/-- is engaged in oil and gas operations through its wholly owned subsidiary, Lexington Oil and Gas Ltd. Co., an Oklahoma limited liability company via a third party contract operator. As of Sept. 30, 2007, the company has an aggregate of approximately 2,944 gross developed acres, 2,200 net undeveloped acres and 3,257 gross undeveloped acres, 1,771 net developed acres pursuant to leases or concessions in Texas and Oklahoma. LUMINENT MORTGAGE: Has 60 Days to Cure Default on $90 Mil. Notes ---------------------------------------------------------------- Luminent Mortgage Capital Inc. received on Nov. 21, 2007, a notice of default from an indenture trustee of the company's $90 million principal amount 8.125% convertible senior notes due 2027. The default under the indenture occurred due to the company's previously reported delay in filing of its Form 10-Q report for the period ended Sept. 30, 2007, with the Securities and Exchange Commission on or before Nov. 9, 2007. The trustee informed the company that the reporting default will ripen into an event of default under the indenture unless the company cure the reporting default by filing with the SEC its Form 10-Q report for the period ended Sept. 30, 2007 within 60 days after the date of the trustee's notice, or by Jan. 20, 2008. About Luminent Mortgage Headquartered in San Francisco, California, Luminent Mortgage Capital Inc. -- http://www.luminentcapital.com/-- (NYSE: LUM) is a real estate investment trust, or REIT. Luminent is an asset management company that invests in prime whole loans, U.S. agency and other highly-rated, single-family, adjustable-rate, hybrid adjustable-rate and fixed-rate mortgage-backed securities, which it acquires in the secondary market. LUNA CRECIENTE: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Luna Creciente, L.L.C. P.O. Box 611449 Rosemary Beach, FL 32461 Bankruptcy Case No.: 07-50393 Chapter 11 Petition Date: November 26, 2007 Court: Northern District of Florida (Panama City) Debtor's Counsel: Thomas B. Woodward, Esq. P.O. Box 10058 Tallahassee, FL 32302 Tel: (850) 222-4818 Fax: (850) 561-3456 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. MAGNITUDE INFO: Sept. 30 Balance Sheet Upside Down by $2,598,066 ---------------------------------------------------------------- Magnitude Information Systems Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $2,323,020 in total assets and $4,921,086 in total liabilities, resulting in a $2,598,066 total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $231,558 in total current assets available to pay $4,921,086 in total current liabilities. The company reported a net loss of $462,286 on total revenues of $7,639 for the third quarter ended Sept. 30, 2007, compared with a net loss of $1,259,833 on total revenues of $9,468 in the same period last year. Magnitude Information Systems Inc. does not have significant operations. The company realized a loss from operations of $712,740 for the three months period ended Sept. 30, 2007, compared to a loss from operations of $1,267,891 in the same period in 2006. 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?25c3 Going Concern Doubt Rosenberg Rich Baker Berman & Company, in Bridgewater, New Jersey, expressed substantial doubt about Magnitude Information Systems Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's significant operating losses and significant working capital deficiency. About Magnitude Information Headquartered in Branchburg, New Jersey, Magnitude Information Systems Inc. (OTC BB: MAGY.OB) -- http://www.magnitude.com/-- was prior to its change in its strategic business plan in 2007, engaged in marketing of the company's integrated suite of proprietary ergonomic software modules. Following the company's acquisition of Kiwibox Media Inc. on Aug. 16, 2007, the company derives its revenues from advertising on the KiwiBox website. MERITAGE MORTGAGE: Fitch Puts 'B' Ratings on Two Cert. Classes -------------------------------------------------------------- Fitch Ratings has taken rating actions on Meritage Mortgage Corp. asset-backed certificates. Affirmations total $172.1 million and downgrades total $14.3 million. In addition, approximately $17.9 million is placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class is included with the rating actions as: Meritage 2005-2 -- $73 million class A affirmed at 'AAA' (BL: 76.91, LCR: 4.47); -- $26 million class M-1 affirmed at 'AA+' (BL: 64.92, LCR: 3.77); -- $23.1 million class M-2 affirmed at 'AA' (BL: 51.34, LCR: 2.98); -- $14.3 million class M-3 affirmed at 'AA' (BL: 46.9, LCR: 2.72); -- $13.7 million class M-4 affirmed at 'A+' (BL: 41.54, LCR: 2.41); -- $11.1 million class M-5 affirmed at 'A' (BL: 36.61, LCR: 2.13); -- $11.1 million class M-6 affirmed at 'A-' (BL: 31.54, LCR: 1.83); -- $10.7 million class M-7 rated 'BBB+', and placed on Rating Watch Negative (BL: 26.48, LCR: 1.54); -- $7.2 million class M-8 rated 'BBB+', and placed on Rating Watch Negative (BL: 23.09, LCR: 1.34); -- $8.8 million class M-9 downgraded to 'B' from 'BBB' (BL: 15.04, LCR: 0.87); -- $5.5 million class M-10 downgraded to 'B' from 'BBB-' (BL: 13.36, LCR: 0.78). Deal Summary -- Originators: (100% Meritage); -- 60+ day Delinquency: 30.32%; -- Realized Losses to date (% of Original Balance): 2.84%; -- Expected Remaining Losses (% of Current Balance): 17.22%; -- Cumulative Expected Losses (% of Original Balance): 8.75%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. METHANEX CORP: Finances $40 Million of GeoPark's Gas Exploration ---------------------------------------------------------------- Methanex Corporation has signed a natural gas prepayment agreement with GeoPark Holdings Limited. Methanex will provide $40 million in financing to support and accelerate GeoPark's natural gas exploration and development activities in the Fell Block in Southern Chile. Under the arrangement, GeoPark will also provide Methanex with natural gas supply sourced from the Fell Block under a ten year supply agreement. GeoPark has been increasing its gas supply to Methanex since 2006 and its goal is to provide up to 10% of Methanex's total natural gas needs in Chile by the end of 2008. "This prepayment agreement represents an important step to restore secure, long term gas supply to our plants in Chile," Paul Schiodtz, Methanex's Latin America senior vice president, commented. "We are delighted to be working closely with GeoPark who have been very successful both discovering new gas and investing in infrastructure to increase natural gas deliveries to our plants." "We are also very pleased with the results in the bidding process for oil and gas exploration in the south of Chile," Mr. Schiodtz continued. "The Chilean Government disclosed the participation of five other international oil and gas companies in gas exploration and development in areas which are all very close to our plants." "This strategic alignment of Methanex and GeoPark strengthens both companies - by increasing the supply of natural gas in Chile for Methanex and by underpinning the long term development of GeoPark's natural gas reserves," James Park, CEO of GeoPark added. "The agreement secures an economic long term market for all of GeoPark's Chilean gas production while also providing a source of financing to accelerate capital investment." About GeoPark Holdings Limited GeoPark Holdings Limited (LON:GPK) -- http://www.geo-park.com/-- is a Latin American oil and gas producer and explorer with properties in Argentina and Chile. About Methanex Corporation Vancouver-based Methanex Corp. (Toronto: MX) (NASDAQGM: MEOH) -- http://www.methanex.com/-- is a publicly-traded company engaged in the production, distribution, and marketing of methanol. The company's stock also trate on foreign securities market of the Santiago Stock Exchange in Chile under the trading symbol "Methanex". * * * Moody's Investor Services' credit ratings for the company's unsecured notes at Sept. 30, 2007, is Ba1. The outlook is stable. MORTGAGE ASSET: Fitch Junks Rating on Class M-6 Certificates ------------------------------------------------------------ Fitch Ratings has taken these rating actions on the Mortgage Asset Securitization Transactions (MASTR) Asset Back Securities Trust (MABS) mortgage pass-through certificates listed below: Series 2002-OPT1 -- Class M-2 affirmed at 'AAA' ; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 downgraded to 'CCC/DR3' from 'BB-'. Series 2004-WMC1 -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 downgraded to 'BB' from 'BBB+'; -- Class M-5 downgraded to 'B' from 'BBB'. The affirmations, affecting approximately $94.2 million of the outstanding certificates, are taken as a result of a stable relationship between credit enhancement and expected loss. The downgrades, affecting approximately $8.7 million, are the result of deterioration in the relationship between CE and expected losses. Series 2002-OPT1 has serious delinquencies (loans delinquent more than 60 days, inclusive of loans in foreclosure, bankruptcy, and real estate owned) of 25.10% and current cumulative loss of 1.29%, while the affected M-6 bond has 2.78% of CE. Series 2004-WMC1 has serious delinquencies of 14.89% and current cumulative loss of 1.16%, while the affected M-4 and M-5 bonds have 8% and 5.37% of CE, respectively. In each of the transactions, losses have exceeded excess spread for five of the last six months. As a result, the overcollateralization is below its target level. The collateral of the above transactions primarily consists of conforming and non-conforming, fixed-rate and adjustable-rate subprime mortgage loans secured by first and second liens on residential properties. The mortgages underlying series 2002-OPT1 were originated or acquired by Option One Mortgage Corp. and are serviced by Option One Mortgage Corp. (rated 'RPS2+' and on Rating Watch Negative by Fitch). The mortgages underlying series 2004- WMC1 were originated or acquired by WMC, a mortgage banking company incorporated in the state of California and are serviced by HomEq Servicing Corp. (rated 'RPS1' by Fitch). The pool factors for series 2002-OPT1 and 2004-WMC1 are approximately 6% and 9%, respectively, and the transactions are seasoned 59 months and 43 months, respectively. MSB OF DESTIN: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: MSB of Destin, Inc. dba AJ's Restaurant & Marina aka Southside Investments, Inc. 101A Mountain Drive Destin, FL 32541 Bankruptcy Case No.: 07-31149 Type of Business: The Debtor operates a restaurant and bar. The Debtor's stockholder, Hubert A. Laird, filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. N.D. Fla. Case No. 07-31128). Chapter 11 Petition Date: November 26, 2007 Court: Northern District of Florida (Pensacola) Debtor's Counsel: John E. Venn, Esq. John E. Venn, Jr., P.A. 220 West Garden Street Suite 603 Pensacola, FL 32502 Tel: (850) 438-0005 Fax: (850) 438-1881 Debtor's financial condition as of Sept. 30, 2007: Total Assets: $39,041,476 Total Debts: $9,114,105 Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Kenneth H. Levy Personal Guaranty $413,327 804 Kellaire Drive Debt of Hubert A. Destin, FL 32541 Laird F&E Sportswear Trade Debt $52,019 1230 Newell Parkway Montgomery, AL 36110 Danny Smith Loan $44,902 202 Twin Lake Lane Destin, FL 32541 Whitney National Bank Cruiser Boat $378,955 Secured: $338,174 Unsecured: $40,781 Daffin Wholesale Distribution Trade Debt $31,236 Sysco Food Services Gulf Coast Trade Debt $19,918 Gulf Power Electric Service $19,335 Northwestern Mutual Insurance $15,253 Merchants Paper Company Trade Debt $13,936 Southern Wine & Spirits Trade Debt $11,948 First National Bank & Trust Loan $8,437 Blue Cross Blue Shield Insurance $7,924 Goldring Gulf Distributing Trade Debt $7,057 Cox Media Cable Service $7,503 Florida Department of Revenue Unemployment Taxes $7,502 Lowes Business Account Credit Account $6,534 Carr Riggs Ingram Accounting Fees $6,039 Capital One Credit Card $5,907 Waste Management Trade Debt $5,761 Progressive Insurance Insurance $5,627 NANOBAC PHARMA: Sept. 30 Balance Sheet Upside-Down by $2,158,289 ---------------------------------------------------------------- Nanobac Pharmaceuticals Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $7,342,051 in total assets and $9,500,340 in total liabilities, resulting in a $2,158,289 total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $40,043 in total current assets available to pay $6,663,802 in total current liabilities. The company reported a net loss of $835,763 on revenue of $5,809 for the third quarter ended Sept. 30, 2007, compared with a net loss of $787,183 on revenue of $23,894 in the same period last year. The company continues to experience significant losses as it conducts research and development related to nanobacteria. The company is presently dependent on affiliates of its chief executive officer and other investors to provide sufficient cash sources to fund operations. 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?25c4 Going Concern Doubt Aidman Piser & Company P.A., in Tampa, Florida, expressed substantial doubt about Nanobac Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that the company has suffered recurring losses from operations, has working capital and net capital deficiencies and is dependent upon continued financing from stockholders and/or outside investors. About Nanobac Pharmaceuticals Headquartered in Tampa, Florida, Nanobac Pharmaceuticals Inc. (OTC BB: NNBP.OB) -- http://www.nanobac.com/-- is dedicated to the discovery and development of products and services to improve human health through the detection and treatment of calcifying nanoparticles, formerly known as nanobacteria. The company's pioneering research is establishing the pathogenic role of CNPs in soft tissue calcification, particularly in coronary artery, prostate and vascular disease. NEW CENTURY: Fitch Holds 'BB' Rating on $5.4MM Class B-2 Certs. --------------------------------------------------------------- Fitch Ratings has taken these rating actions on New Century mortgage pass-through certificates. Affirmations total $2.3 billion. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: New Century 2005-A -- $508.3 million class A affirmed at 'AAA' (BL: 22.25, LCR: 6.08); -- $24.2 million class M-1 affirmed at 'AA+' (BL: 16.50, LCR: 4.51); -- $23.7 million class M-2 affirmed at 'AA' (BL: 12.62, LCR: 3.45); -- $6.7 million class M-3 affirmed at 'AA-' (BL: 11.51, LCR: 3.15); -- $7.4 million class M-4 affirmed at 'A+' (BL: 10.27, LCR: 2.81); -- $5.9 million class M-5 affirmed at 'A' (BL: 9.30, LCR: 2.54); -- $4.8 million class M-6 affirmed at 'A-' (BL: 8.52, LCR: 2.33); -- $4.9 million class M-7 affirmed at 'BBB+' (BL: 7.76, LCR: 2.12); -- $3.7 million class M-8 affirmed at 'BBB' (BL: 7.17, LCR: 1.96); -- $4.9 million class M-9 affirmed at 'BBB-' (BL: 6.38, LCR: 1.74); -- $5.4 million class B-1 affirmed at 'BB+' (BL: 5.50, LCR: 1.50); -- $5.4 million class B-2 affirmed at 'BB' (BL: 4.72, LCR: 1.29). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 5.89%; -- Realized Losses to Date (% of Original Balance): 0.34%; -- Expected Remaining Losses (% of Current Balance): 3.66%; -- Cumulative Expected Losses (% of Original Balance): 2.61%. New Century 2005-1 -- $115.1 million class A affirmed at 'AAA' (BL: 89.01, LCR: 8.79); -- $95.7 million class M-1 affirmed at 'AA+' (BL: 75.08, LCR: 7.42); -- $83.7 million class M-2 affirmed at 'AA' (BL: 62.00, LCR: 6.12); -- $47.8 million class M-3 affirmed at 'AA-' (BL: 53.82, LCR: 5.32); -- $62.8 million class M-4 affirmed at 'A+' (BL: 26.54, LCR: 2.62); -- $52.3 million class M-5 affirmed at 'A' (BL: 22.85, LCR: 2.26); -- $32.9 million class M-6 affirmed at 'A-' (BL: 20.67, LCR: 2.04); -- $44.8 million class M-7 affirmed at 'BBB+' (BL: 17.83, LCR: 1.76); -- $34.4 million class M-8 affirmed at 'BBB' (BL: 15.69, LCR: 1.55); -- $35.8 million class M-9 affirmed at 'BBB-' (BL: 13.99, LCR: 1.38). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 21.60%; -- Realized Losses to Date (% of Original Balance): 0.87%; -- Expected Remaining Losses (% of Current Balance): 10.12%; -- Cumulative Expected Losses (% of Original Balance): 3.32%. New Century 2005-3 -- $571.0 million class A affirmed at 'AAA' (BL: 59.03, LCR: 6.79); -- $100.0 million class M-1 affirmed at 'AA+' (BL: 50.65, LCR: 5.83); -- $91.3 million class M-2 affirmed at 'AA' (BL: 39.64, LCR: 4.56); -- $58.0 million class M-3 affirmed at 'AA-' (BL: 37.15, LCR: 4.27); -- $52.2 million class M-4 affirmed at 'A+' (BL: 33.25, LCR: 3.82); -- $49.3 million class M-5 affirmed at 'A' (BL: 22.50, LCR: 2.59); -- $43.5 million class M-6 affirmed at 'A-' (BL: 19.90, LCR: 2.29); -- $39.1 million class M-7 affirmed at 'BBB+' (BL: 17.54, LCR: 2.02); -- $33.3 million class M-8 affirmed at 'BBB' (BL: 15.46, LCR: 1.78); -- $29.0 million class M-9 affirmed at 'BBB-' (BL: 13.79, LCR: 1.59); -- $24.6 million class M-10 affirmed at 'BBB-' (BL: 12.99, LCR: 1.49). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 19.07%; -- Realized Losses to Date (% of Original Balance): 0.84%; -- Expected Remaining Losses (% of Current Balance): 8.69%; -- Cumulative Expected Losses (% of Original Balance): 4.40%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. NORTHWEST PARKWAY: Fitch Withdraws Junk Rating on $431.8MM Bonds ---------------------------------------------------------------- Fitch Ratings has withdrawn its 'CCC+' rating and Negative Outlook on approximately $431.8 million in Northwest Parkway Public Highway Authority, CO, senior revenue bonds, series 2001A, series 2001B and series 2001C. The bonds were defeased on November 21 pursuant to a concession and lease agreement between the authority and Northwest Parkway, LLC, which is owned by Brisa Auto-estradas de Portugal, SA and Companhia de Concessoes Rodoviarias. NRG ENERGY: Supplements Offers to Purchase $4.7BB of Senior Notes ----------------------------------------------------------------- NRG Energy Inc. disclosed that, in connection with its pending conditional tender offers and concurrent consent solicitations relating to its $4.7 billion of outstanding 7.25% senior notes due 2014, 7.375% senior notes due 2016 and 7.375% senior notes due 2017, it is providing each investor with a new consent alternative with respect to its Notes in addition to the tender offers and consent solicitations, which remain in effect. Each investor may elect to tender its Notes in the conditional, contractually required offers at 101% of the principal amount, plus accrued interest, or may elect to receive a consent payment of $1.25 to $2.50 in cash per $1,000 principal amount of Notes. For the Original Consent Payment, consents are limited to an agreement not to require the change of control offers in connection with NRG's formation of a holding company structure via the contemplated intercompany merger transaction. The Original Consent Payment will be a minimum of $1.25 per $1,000 principal amount of Notes, or, in the event that such consents are received from a majority in principal amount of a series of Notes, will be $1.25 divided by the percentage of that series which consented. As supplemented, each investor will have the same two alternatives as before well as a new consent alternative. Under the new alternative, each investor may elect to receive a consent payment of $7.50 to $15.00 in cash per $1,000 principal amount of Notes. For the Alternative Consent Payment, consents will provide a new exception to the limitation on restricted payments in the indentures for the Notes which will permit restricted payments, including dividends and/or stock repurchases, of up to $300 million per year, with any of this additional restricted payment capacity not used during a year being carried over to the next year on a cumulative basis and without reducing the amounts otherwise available to make restricted payments. In the event that consents to the new consent alternative are received from a majority in principal amount of each of the three series of Notes, the Alternative Consent Payment will be $7.50, divided by the overall percentage of the aggregate principal amount of the Notes that delivered consents under the new alternative and, in that event, NRG will not consummate the Holdco Merger and NRG will not be obligated to consummate the tender offers. In all other events, Holders of Notes who deliver consents under the new consent alternative will also be consenting to the Original Amendment and will receive $7.50 per $1,000 principal amount of such Notes subject to and promptly upon consummation of the Holdco Merger. NRG's obligation to make the minimum consent payments of $1.25 per $1,000 principal amount of Notes or $7.50 per $1,000 principal amount of Notes, as applicable, is not conditioned on the receipt of consents from holders of Notes representing a majority in principal amount of any one or more series. The only condition to NRG's obligation to make these minimum consent payments is the consummation of the Holdco Merger, and NRG will make these consent payments promptly thereafter. The only condition to NRG's obligation to make the Maximum Alternative Consent Payment is the receipt and effectiveness of consents to the new consent alternative from holders of a majority in principal amount of each of the three series of Notes, and NRG will make such payments promptly thereafter. In the event that consents are received with respect to Notes representing a majority in principal amount of a particular series of Notes, whether under the original consent alternative, the new consent alternative or both on a combined basis, NRG will have the option to terminate the tender offer for that series of Notes in its discretion without purchasing any tendered Notes of such series. Tendered Notes will not be eligible to receive any consent payment even if NRG exercises its option to terminate the tender offer for a series after receiving majority consents from that series. The tender offers are not being modified and will continue in effect on the same terms and conditions. The tender offers are expressly conditioned on the consummation of the Holdco Merger, although NRG reserves the right to accept tenders and purchase tendered Notes even if the Holdco Merger is not consummated. Only one election may be made with respect to a specific principal amount of Notes. However, one election may be made for a portion of such Notes and another election or elections may be made for the remainder of such Notes. Holders who deliver consents with respect to any Notes will be eligible to receive either the Original Consent Payment or the Alternative Consent Payment for such Notes, as appropriate according to their election for such Notes, but not both consent payments. Notes that are neither tendered nor consented will not be eligible to receive a consent payment under any circumstances. The tender offers and the consent solicitations will expire at 9:00 a.m., New York City time, on Tuesday, Dec. 4, 2007, unless extended. NRG reserves the right, but is not obligated, to extend the tender offers and the consent solicitations. Tenders may be withdrawn and consents may be revoked at any time prior to 9:00 a.m., New York City time, on Tuesday, Dec. 4, 2007. Banc of America Securities LLC is the exclusive dealer manager for the tender offers and solicitation agent for the consent solicitations. Questions regarding the tender offers and the consent solicitations can be addressed to Banc of America Securities LLC at (888) 292-0070 or (212) 847-5188. Requests for documents may be directed to MacKenzie Partners Inc., the information agent, at (800) 322-2885 or (212) 929-5500. About NRG Energy Hearquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE: NRG) -- http://www.nrgenergy.com/-- owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and West regions of the U.S. Its operations include baseload, intermediate, peaking, and cogeneration and thermal energy production facilities. NRG also has ownership interests in generating facilities in Australia, Germany and Brazil. * * * Standard & Poor's Ratings Services rated NRG Energy Inc.'s $4.7 billion unsecured bonds at 'B'. In addition, Standard & Poor's rated NRG Energy Inc.'s corporate credit rating at 'B+'. The outlook is stable. PARK PLACE: S&P Lowers Ratings on Six Certificate Classes --------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on six classes of asset-backed pass-through certificates from four Park Place Securities Inc. series. Three of the classes were downgraded from investment-grade to speculative-grade. Concurrently, S&P affirmed its ratings on all remaining classes of mortgage pass-through certificates from these four Park Place Securities Inc. series. The table below shows the current performance data of the four series. Performance Data Cum. realized Severely Series losses(i) delinq (ii) ------ ------------- ----------- 2004-MCW1 1.79% 21.68% 2004-MHQ1 2.61% 15.58% 2004-WCW2 2.35% 18.97% 2004-WHQ1 2.05% 18.01% (i)As a percentage of original pool balance. (ii)As a percentage of current pool balance. Current pool bal. Months Series (% of orig. pool bal.) seasoned ------ --------------------- -------- 2004-MCW1 19.20 36 2004-MHQ1 24.42 35 2004-WCW2 21.48 36 2004-WHQ1 20.67 36 The downgrades of class M-9 and M-10 from series 2004-MCW1 reflect monthly losses outpacing monthly excess interest. As of the October 2007 remittance period, monthly losses for the last three months averaged $2,280,728, while the average monthly excess interest was $911,770. In addition, overcollateralization began stepping down. At the current loss levels, current and projected credit support percentages are not sufficient to support the ratings at the previous levels. The downgrade of class M-10 from series 2004-MHQ1 reflects the increasing losses that are outpacing monthly excess interest causing O/C to decline to $54,419,148, or 1.94% of the original pool balance. As of the October 2007 remittance period, monthly losses for the last three months averaged $4,060,068, while the average monthly excess interest was $1,495,252. O/C was below its target of $85,400,001, or 3.05% of the original pool balance. At the current loss levels, current and projected credit support percentages are not sufficient to support the rating at its previous level. The downgrades of class M-9 and M-10 from series 2004-WCW2 reflect increasing losses that are outpacing monthly excess interest. As of the October 2007 remittance period, monthly losses for the last three months averaged $4,500,681, while the average monthly excess interest averaged $1,299,355. In addition, the O/C began stepping down. At the current loss levels, current and projected credit support percentages are not sufficient to support the ratings at their previous levels. The downgrade of class M-10 from series 2004-WHQ1 reflects increasing losses that are outpacing monthly excess interest. As of the October 2007 remittance period, monthly losses for the last three months averaged $2,143,275, while the average monthly excess interest averaged $993,955. In addition, the O/C began stepping down. At the current loss levels, current and projected credit support percentages are not sufficient to support the rating at its previous level. S&P affirmed its ratings on the remaining classes from the 2004- MCW1, 2004-MHQ1, 2004-WCW2, and 2004-WHQ1 series based on loss coverage percentages that are sufficient to maintain the current ratings. Subordination, O/C, and excess spread provide credit support for all of the affected deals. The collateral for these transactions primarily consists of subprime, adjustable- and fixed-rate mortgage loans secured by first and second liens on residential properties. Ratings Lowered Park Place Securities Inc. Asset-backed pass-through certificates Rating ------ Series Class To From ------ ----- -- ---- 2004-MCW1 M-9 BB BBB 2004-MCW1 M-10 CCC BBB- 2004-MHQ1 M-10 B BB+ 2004-WCW2 M-9 BB BBB- 2004-WCW2 M-10 B BB+ 2004-WHQ1 M-10 B BB+ Ratings Affirmed Park Place Securities Inc. Asset-backed pass-through certificates Series Class Rating ------ ----- ------ 2004-MCW1 A-1, A-2, A-5 AAA 2004-MCW1 M-1 AA+ 2004-MCW1 M-2 AA 2004-MCW1 M-3 AA- 2004-MCW1 M-4, M-5 A+ 2004-MCW1 M-6 A 2004-MCW1 M-7 A- 2004-MCW1 M-8 BBB+ 2004-MHQ1 A-1, A-3, A-4 AAA 2004-MHQ1 M-1 AA+ 2004-MHQ1 M-2 AA 2004-MHQ1 M-3 AA- 2004-MHQ1 M-4 A+ 2004-MHQ1 M-5 A 2004-MHQ1 M-6 A- 2004-MHQ1 M-7 BBB+ 2004-MHQ1 M-8 BBB 2004-MHQ1 M-9 BBB- 2004-WCW2 A-1, A-2, A-5, A-7 AAA 2004-WCW2 M-1 AA+ 2004-WCW2 M-2 AA 2004-WCW2 M-3 AA- 2004-WCW2 M-4 A+ 2004-WCW2 M-5 A 2004-WCW2 M-6 A- 2004-WCW2 M-7 BBB+ 2004-WCW2 M-8 BBB 2004-WHQ1 A-1, A-2, A-5 AAA 2004-WHQ1 M-1 AA+ 2004-WHQ1 M-2 AA 2004-WHQ1 M-3 AA- 2004-WHQ1 M-4 A+ 2004-WHQ1 M-5 A 2004-WHQ1 M-6 A- 2004-WHQ1 M-7 BBB+ 2004-WHQ1 M-8 BBB 2004-WHQ1 M-9 BBB- PEOPLE'S CHOICE: Fitch Puts Low-B Ratings on Three Cert. Classes ---------------------------------------------------------------- Fitch Ratings has taken these rating actions on the People's Choice mortgage pass-through certificates: Series 2004-2 -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 downgraded to 'A' from 'A+'; -- Class M-4 downgraded to 'BBB+' from 'A'; -- Class M-5 downgraded to 'BB+' from 'A-'; -- Class M-6 downgraded to 'B' from 'BBB+' and removed from Rating Watch Negative; -- Class M-7 downgraded to 'B-/DR1' from 'BB'; -- Class M-8 downgraded to 'CCC/DR2' from 'BB-'; -- Class B downgraded to 'C/DR6' from 'B'. The affirmations affect approximately $34.8 million of the outstanding certificates and reflect a stable relationship between credit enhancement and expected loss. The downgrades affect approximately $76.6 million of the outstanding certificates and reflect deterioration in the relationship between CE and expected losses. Since Fitch last took rating action on series 2004-2 in April 2007, losses have continued to exceed excess spread and, as a result, continue to erode the overcollateralization below target. As of the October 2007 remittance date, the OC is $2.2 million below the target of $3.7 million. The OC as a percent of the current collateral balance is 1.30% ($1.5 million). The cumulative loss as a percentage of the original collateral balance is 2.5% and the 60+ DQ (including bankruptcy, foreclosure, and real estate-owned) as a percentage of the current collateral balance is 26.8%. Losses are expected to continue to exceed excess spread. The collateral of the above transaction consists of fixed-rate and adjustable-rate subprime mortgage loans secured by first and second liens on one- to four-family residential properties. The mortgage loans were originated by People's Choice Home Loan Inc. and are serviced by Chase Home Finance LLC (rated 'RPS1' by Fitch). Series 2004-2 has a pool factor of 15% and is seasoned 38 months. PERFORMANCE TRANSPORTATION: Taps Kurtzman Carson as Claims Agent ---------------------------------------------------------------- Performance Transportation Services Inc. and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Western District of New York to employ Kurtzman Carson Consulting LLC to perform various noticing, claims management, plan solicitation, balloting, disbursement and other services. The thousands of creditors and other parties-in-interest involved in the Chapter 11 cases of Performance Transportation Services Inc. and its affiliates may impose heavy administrative and other burdens on the Court and the office of the Court Clerk. "Kurtzman Carson's assistance will expedite service of notices, streamline the claims administration process, and permit PTS to focus efficiently on maximizing the value for stakeholders," Garry M. Graber, Esq., at Hodgson Russ LLP, PTS' proposed counsel, said. Pursuant to a services agreement dated Oct. 25, 2007, Kurtzman Carson will: (a) assist the Debtors in preparation and filing of their Schedules of Assets and Liabilities and Statement of Financial Affairs; (b) prepare and serve required notices in PTS' Chapter 11 cases, including notice of commencement of the bankruptcy cases and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code, a notice of the claims bar date, notices of objections to claims, and notices of hearings on a disclosure statement and confirmation of a plan; (c) prepare for filing with the Clerk's Office an affidavit of service that includes a copy of the notice served, an alphabetical list of persons on whom the notice was served along with their addresses, and the date and manner of service; (d) maintain copies of all proofs of claim and proofs of interests filed in PTS' bankruptcy case; (e) maintain official claims register by docketing all proofs of claim and proofs of interest in a claims database; (f) implement necessary security measures to ensure the completeness and integrity of the claims registers; (g) transmit to the Clerk's Office a copy of the claims register on a weekly basis; (h) maintain an up-to-date mailing list for all entities that have filed proofs of claim or proofs of interest and make those list available to the Clerk's Office or any party-in-interest; (i) provide access to the public examination of copies of the proofs of claim or proofs of interest filed in PTS' bankruptcy case without charge during regular business hours; (j) create and maintain a public access Web site providing pertinent case information and allowing access to certain documents filed in PTS' Chapter 11 case; (k) record all transfers of claims and provide notice of those transfers; (l) assist PTS in the reconciliation and resolution of claims; (m) comply with applicable federal, state, municipal and local statues, ordinances, rules, regulations, orders and other requirements; (n) provide temporary employees to process claims, as necessary; (o) promptly comply with further conditions and requirements as the Clerk's Office or the Court at any time prescribe; and (p) provide balloting and solicitation services, including producing personalized ballots and tabulating creditor ballots on a daily basis. PTS will pay Kurtzman Carson its customary hourly consulting fees. Kurtzman Carson's Fee Structure, however, was not filed with the Court. PTS will also pay Kurtzman Carson fees related to transportation, lodging, meals, publications, postages and other third-party charges. Pursuant to the October Service Agreement, Kurtzman Carson will receive a $15,000 retainer for its services. PTS does not believe that Kurtzman Carson, as an administrative agent and adjunct to the Court, is a "professional" whose retention is subject to Court approval under Section 327 of the Bankruptcy Code, or whose compensation is subject to approval of the Court under Sections 330 and 331 of the Bankruptcy Code. Performance Transportation Services Inc. is the second largest transporter of new automobiles, sport-utility vehicles and light trucks in North America, and operates under three key transportation business lines including: E. and L. Transport, Hadley Auto Transport and Leaseway Motorcar Transport. The company and 13 of its affiliates previously filed for Chapter 11 protection on Jan. 25, 2006 (Bankr. W.D.N.Y. Lead Case No. 06- 00107). The Court confirmed the Debtors' plan on Dec. 21, 2006, and that plan became effective on Jan. 29, 2007. Garry M. Graber, Esq. of Hodgson, Russ LLP and Tobias S. Keller, Esq. of Jones Day represented the Debtors in their retructuring efforts. When the Debtor filed for protection from their creditors it reported more than $100,000,000 in total assets. It also disclosed owing more than $100,000,000 to at most 10,000 creditors, including $708,679 to Broadspire and $282,949 to General Motors of Canada Limited. The company and its debtor-affiliates filed their second Chapter 11 bankruptcy on Nov. 19, 2007 (Bankr. W.D.N.Y. Case Nos: 07-04746 thru 07-04760). Tobias S. Keller, Esq., at Jones Day, represents the Debtors. Garry M. Graber, Esq., at Hodgson, Russ LLP, serve as the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. (Performance Bankruptcy News, Issue No. 30; Bankruptcy Creditors' Services Inc.; http://bankrupt.com/newsstand/or 215/945-7000). PETRO ACQUISITIONS: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Lead Debtor: Petro Acquisitions, Inc. 3955 Alexandria Pike Cold Spring, KY 41076 Bankruptcy Case No.: 07-15723 Debtor-affiliates filing separate Chapter 11 petitions on Nov. 27, 2007: Entity Case No. ------ -------- O.V. Acquisition, Inc. 07-15754 Petro Supply, Inc. 07-15755 A.F.M. 29008, Inc. 07-15756 C.F.M. #29016, Inc. 07-15757 C.F.M. #29027, Inc. 07-15758 A.F.M. 29041, Inc. 07-15761 C.F.M. # 2943, Inc. 07-15762 Shivsagar Corp. 07-15763 Greenfield Convenient #2955, Inc. 07-15764 C.F.M. #29056, Inc. 07-15765 A.F.M. 29061, Inc. 07-15766 A.F.M. 29065, Inc. 07-15767 C.F.M. 29069 Inc. 07-15768 Owenton Cenvenient, Inc. 07-15769 A.F.M.-Remington 86, Inc. 07-15770 A.F.M.-Crookshank 87, Inc. 07-15771 Bhavi & Giri, Inc. 07-15772 C.F.M. #29098 Inc. 07-15773 A.F.M. Dry Ridge 106, Inc. 07-15774 A.F.M. 29107, Inc. 07-15776 A.F.M. 29114, Inc. 07-15777 A.F.M. 29126, Inc. 07-15778 A.F.M. 29127, Inc. 07-15779 C.F.M. #29305, Inc. 07-15780 C.F.M. #29315, Inc. 07-15781 C.F.M. No. 29328, Inc. 07-15782 C.F.M. No. 29331, Inc. 07-15783 A.F.M. 29332, Inc. 07-15784 C.F.M. NO. 29610 07-15785 C.F.M. No. 29614, Inc. 07-15786 Debtor-affiliates filing separate Chapter 11 petitions on Nov. 17, 2007: Entity Case No. ------ -------- Waco Acquisitions, Inc. 07-15630 A.F.M. 802, Inc. 07-15631 A.F.M. 803, Inc. 07-15632 A.F.M. 804, Inc. 07-15634 A.F.M. 808, Inc. 07-15635 A.F.M. 809, Inc. 07-15636 A.F.M. 811, Inc. 07-15637 A.F.M. 813, Inc. 07-15638 A.F.M. 817, Inc. 07-15639 Debtor-affiliates filing separate Chapter 11 petitions on Nov. 12, 2007: Entity Case No. ------ -------- A.F.M. 805, Inc. 07-15511 A.F.M. 806, Inc. 07-15512 A.F.M. 807, Inc. 07-15513 A.F.M. 810, Inc. 07-15514 A.F.M. 812, Inc. 07-15515 A.F.M. 814, Inc. 07-15516 A.F.M. 815, Inc. 07-15517 A.F.M. 816, Inc. 07-15518 Ohio Valley A.F.M., Inc. 07-15506 Debtor-affiliates filing separate Chapter 11 petitions on Nov. 5, 2007: Entity Case No. ------ -------- Gillespie Acquisition, Inc. 07-15378 Gillespie Wholesale, Inc. 07-15379 A.F.M. 711, Inc. 07-15381 A.F.M. 712, Inc. 07-15383 A.F.M. 713, Inc. 07-15384 A.F.M. 714, Inc. 07-15386 A.F.M. 716, Inc. 07-15388 Jackson Center 717, Inc. 07-15389 A.F.M. 717, Inc. 07-15390 A.F.M. 720, Inc. 07-15392 A.F.M. 721, Inc. 07-15393 A.F.M. 722, Inc. 07-15394 A.F.M. 723, Inc. 07-15396 Type of Business: Petro Acquisitions Inc., operates and franchises 140 AmeriStop gas stations and convenience stores in Ohio, Kentucky and Indiana. The company's wholly-owned subsidiary Gillespie Acquisition, Inc. filed for Chapter 11 protection with 13 affiliates on November 5 (Bankr. S.D. Ohio Lead Case No. 07-15378). Waco Acquisitions, Inc., another of Petro's wholly-owned subsidiary, filed for bankruptcy with eight affiliates on November 17 (Bankr. S.D. Ohio. Lead Case No. 07-15630). A.F.M. 805, Inc. and eight affiliates, are subsidiaries of Waco Acquisition and filed for Chapter 11 on November 12 (Bankr. S.D. Ohio Lead Case No. 07-15511). Ohio Valley A.F.M., Inc., a subsidiary of OV Acquisition, which in turn is a subsidiary of Waco Acquisition, also filed for bankruptcy of November 12 (Bankr. S.D. Ohio under Case No. 07-15511). The case summaries of the bankruptcy petitions of Petro's subsidiaries was published in the Troubled Company Reporter on Nov. 20, 2007. Chapter 11 Petition Date: November 21, 2007 Court: Southern District of Ohio (Cincinnati) Debtors' Counsel: Ronald E. Gold, Esq. Frost, Brown, Todd L.L.C. 2200 P.N.C. Center 201 East Fifth Street Cincinnati, OH 45202 Tel: (513) 651-6800 Fax: (513) 651-6981 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Petro Acquisitions' affiliates that filed their voluntary Chapter 11 petitions on Nov. 27, have yet to file a list of their 20 largest unsecured creditors. PETRO ACQUISTIONS: Committee Appointed in Gillespie & AFM's Cases ----------------------------------------------------------------- The U.S. Trustee for Region 9 appointed five creditors to serve on an Official Committee of Unsecured Creditors in Gillespie Acquisition Inc. and its debtor-affiliates' Chapter 11 cases. This same Committee will also serve in the Chapter 11 cases of A.F.M. 805 Inc., its debtor-affiliates, and Ohio Valley A.F.M., Inc. The Committee members are: 1. CORE-MARK MIDCONTINENT, INC. 2700 National City Tower Louisville, Kentucky 40202 Tel: (502) 588-2000 Attn: Phillip A. Martin 2. COCA-COLA ENTERPRISES BOTTLING COMPANIES 31 Rose Lane East Rockaway, New York 11578 Tel: (516) 374-3705 Attn: William Kaye 3. BONNELL HILL DEVELOPMENT CO., INC. 3000 G. Henkle Drive Lebanon, OH 45036 Attn: Michael T. Schueler Tel: (513) 932-6090 Atty: Ronald S. Preterkin, Esq. 33 West First Street, Suite 600 Dayton, Ohio 45402 Tel: (513) 932-6090 4. AM #29119 dba AM 29118 Joe Hancock 4419 Village Ridge Drive Mason, OH 45040 Tel: (513) 518-2713 Atty: Paige L. Ellerman, Esq. 425 Walnut Street, Suite 1800 Cincinnati, Ohio 45202 Tel: (513) 381-2838 5. CFM # 29073, INC. Todd Daniels 730 Dayton Street Hamilton, OH 45011 Tel: (513) 844-6167 Cell: (513) 476-0460 Atty: PAIGE L. ELLERMAN 425 Walnut Street, Suite 1800 Cincinnati, Ohio 45202 Telephone: (513) 381-2838 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About Petro Based on Cold Spring, Kentucky, Petro Acquisitions Inc., operates and franchises 140 AmeriStop gas stations and convenience stores in Ohio, Kentucky and Indiana. The company filed for Chapter 11 protection on Nov. 21, 2007 (Bankr. S.D. Ohio Case No. 07-15723). When it filed for protection from its creditors, Petro Acquisitions disclosed estimated assets and debts between $1 million and $100 million. The company's wholly owned subsidiary Gillespie Acquisition Inc. filed for Chapter 11 protection, along with 13 affiliates on Nov. 5, 2007 (Bankr. S.D. Ohio Lead Case No. 07-15378). Gillespie's consolidated financial condition as of July 15, 2007 showed total assets of $11,775,952 and total debts of $11,112,880. Waco Acquisitions Inc., another of Petro's wholly owned subsidiary, filed for bankruptcy with eight affiliates on Nov. 17, 2007 (Bankr. S.D. Ohio. Lead Case No. 07-15630). Waco Acquisition disclosed that its consolidated financial condition as of July 15, 2007, had total assets of $12,662,827 and total debts of $25,536,402. A.F.M. 805, Inc. and eight affiliates, which are subsidiaries of Waco Acquisition and filed for Chapter 11 on Nov. 12 (Bankr. S.D. Ohio Lead Case No. 07-15511). A.F.M. 805 and its affiliates disclosed total assets of $13,813,422 and total debts of $658,578 as of July 15, 2007. Ohio Valley A.F.M., Inc., a subsidiary of OV Acquisition, which in turn is a subsidiary of Waco Acquisition, also filed for bankruptcy of November 12 and is jointly administered under the Chapter 11 case of A.F.M. 805. Ohio Valley's consolidated financial condition, which includes the AmeriStop Food Mart company owned stores, as of Aug. 12, 2007, showed total assets of $6,383,243 and total debts of $3,331,415. The latest affiliate of Petro Acquisition to file for Chapter 11 protection was O.V. Acquisition, Inc. and 20 affiliates of Nov. 27, 2007 (Bankr. S.D. Ohio Case No. 07-15754). O.V. Acquisition disclosed estimated assets and debts between $1 million and $100 million at the time of its filing. All the voluntary Chapter 11 petitions was filed by receiver Richard D. Nelson, Esq. Ronald E. Gold, Esq., at Frost, Brown, Todd L.L.C., serves as counsel to all the Debtors. PETRO ACQUISITIONS: Frost Brown Tapped as Counsel in Units' Cases ----------------------------------------------------------------- Richard D. Nelson, Esq., as receiver for Petro Acquisitions, Inc., and Designated Responsible Person for Gillespie Acquisition, Inc. and its debtor-affiliates and A.F.M. 805, Inc., and its debtor- affiliates, asks the U.S. Bankruptcy Court for the Southern District of Ohio for permission to employ Frost, Brown, Todd L.L.C., as bankruptcy counsel. Frost Brown will serve as counsel in both Gillespie and AFM's chapter 11 cases. Frost Brown was initially retained to defend Petro Acquisitions in the already pending litigation with its minority shareholder, Walnut Investment Partners, L.P. In Jan. 25, 2007, the firm substituted in as counsel in the litigation. However, as the litigation progressed, the Debtors financial condition continued to substantially deteriorate and in September 2007, the Debtors consulted Frost Brown Todd LLC regarding financial restructuring and bankruptcy services. The Debtors, through the Receiver, formally engaged Frost Brown to serve as counsel in these chapter 11 cases pursuant to an engagement letter dated Oct. 23, 2007. As counsel, Frost Brown will: (a) advise the Debtors of their powers and duties as debtors- in-possession in the continued operation of their businesses and properties; (b) provide assistance, advice and representation concerning a plan of reorganization, a disclosure statement relating thereto, and the solicitation of consents to and confirmation of such plan; (c) advise the Debtors in connection with any sale of assets; (d) provide assistance, advice and representation concerning any further investigation of the assets, liabilities and financial condition of the Debtors that may be required; (e) represent the Debtors at hearings or matters pertaining to their affairs as debtors-in-possession; (f) prosecute and defend litigation matters and such other matters that might arise during and related to these chapter 11 cases; (g) provide counseling and representation with respect to the assumption or rejection of executory contracts and leases and other bankruptcy-related matters arising from these chapter 11 cases; (h) render advice with respect to the myriad general corporate and litigation issues as they relate to these chapter 11 cases, including, but not limited to, real estate, ERISA, securities, corporate finance, tax and commercial matters health services matters; and (i) performing such other legal services as may be necessary and appropriate for the efficient and economical administration of these chapter 11 cases. Frost Brown has received a $150,000 general retainer sourced from cash from operating funds of the Debtors and the Petro Companies. As of the date of filing of the either Debtors' chapter 11 petitions, the retainer had a remaining balance of $0. Aside from the retainer, within one year prior to the bankruptcy filing, Frost Brown received $98,056.93 on account of its prepetition services to the Petro Companies. In addition, as of the date of the bankruptcy filings, Frost Brown has accrued but unpaid fees owing by the Petro Companies in the amount of not less than $108,888.64. Frost Brown is waiving its claim as to the Unpaid Amount. Ronald E. Gold, Esq., a member of Frost Brown, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. About Petro Based on Cold Spring, Kentucky, Petro Acquisitions, Inc., operates and franchises 140 AmeriStop gas stations and convenience stores in Ohio, Kentucky and Indiana. The company filed for Chapter 11 protection on Nov. 21, 2007 (Bankr. S.D. Ohio Case No. 07-15723). When it filed for protection from its creditors, Petro Acquisitions disclosed estimated assets and debts between $1 million and $100 million. The company's wholly owned subsidiary Gillespie Acquisition, Inc. filed for Chapter 11 protection, alng with 13 affiliates on Nov. 5, 2007 (Bankr. S.D. Ohio Lead Case No. 07-15378). Gillespie's consolidated financial condition as of July 15, 2007 showed total assets of $11,775,952 and total debts of $11,112,880. Waco Acquisitions, Inc., another of Petro's wholly owned subsidiary, filed for bankruptcy with eight affiliates on Nov. 17, 2007 (Bankr. S.D. Ohio. Lead Case No. 07-15630). Waco Acquisition disclosed that its consolidated financial condition as of July 15, 2007, had total assets of $12,662,827 and total debts of $25,536,402. A.F.M. 805, Inc. and eight affiliates, which are subsidiaries of Waco Acquisition and filed for Chapter 11 on Nov. 12 (Bankr. S.D. Ohio Lead Case No. 07-15511). A.F.M. 805 and its affiliates disclosed total assets of $13,813,422 and total debts of $658,578 as of July 15, 2007. Ohio Valley A.F.M., Inc., a subsidiary of OV Acquisition, which in turn is a subsidiary of Waco Acquisition, also filed for bankruptcy of November 12 and is jointly administered under the Chapter 11 case of A.F.M. 805. Ohio Valley's consolidated financial condition, which includes the AmeriStop Food Mart company owned stores, as of Aug. 12, 2007, showed total assets of $6,383,243 and total debts of $3,331,415. The latest affiliate of Petro Acquisition to file for Chapter 11 protection was O.V. Acquisition, Inc. and 20 affiliates of Nov. 27, 2007 (Bankr. S.D. Ohio Case No. 07-15754). O.V. Acquisition disclosed estimated assets and debts between $1 million and $100 million at the time of its filing. All the voluntary Chapter 11 petitions was filed by receiver Richard D. Nelson, Esq. Ronald E. Gold, Esq., at Frost, Brown, Todd L.L.C., serves as counsel to all the Debtors. QUAKER FABRIC: Want Until March 2008 to Remove Civil Actions ------------------------------------------------------------ Quaker Fabric Corporation and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to set the period within which they can remove civil actions on March 13, 2008. The Debtors tell the Court that they were not able to evaluate the potential need to remove any of their pending prepetition civil actions. The Debtors said that they have been focusing on the transition into Chapter 11, as well as the sale process of substantially all of their assets. On Sept. 19, 2007, the Court approved that sale, including, the right to designate for certain parcels of real property and leases, to Gordon Brothers Group LLC for approximately $27 million. The Debtors assure the Court that their adversaries will not be prejudiced by the extension under Section 1452(b) of the Bankruptcy Code. The Debtors say that the request is in the best interest of the estate and creditors. About Quaker Fabric Based in Fall River, Mass., Quaker Fabric Corp. (NASDAQ: QFAB) -- http://www.quakerfabric.com/-- designs, manufactures, and markets woven upholstery fabrics primarily for residential furniture manufacturers and jobbers. It also develops and manufactures specialty yarns, including chenille, taslan, and spun products for use in the production of its fabrics, as well as for sale to distributors of craft yarns, and manufacturers of homefurnishings and other products. The company is one of the largest producers of Jacquard upholstery fabrics. Quaker Fabric sells its products through sales representatives andindependent commissioned sales agents in the United States, Canada, Mexico, and internationally. The company and its affiliate, Quaker Fabric Corporation of Fall River, filed for chapter 11 protection on Aug. 16, 2007 (Bankr. D. Del. Case No. 07-11146). John D. Sigel, Esq. at Wilmer Cutler Pickering Hale and Dorr LLP and Joel A. Waite, Esq. at Young Conaway Stargatt & Taylor LLP are co-counsels to the Debtors. Epiq Bankruptcy Solutions is the Debtors' claims agent. The Official Committee of Unsecured Creditors has selected Shumaker, Loop & Kendrick, LLP, as its bankruptcy counsel and Benesch, Friedlander, Coplan & Aronoff, LLP, as co-counsel. The Debtors' schedules reflect total assets of $41,375,191 and total liabilities of $54,435,354. QUALITY HOMES: Ch. 11 Trustee Taps Lewis Landau as Bankr. Counsel ----------------------------------------------------------------- David Gould, the appointed Chapter 11 Trustee in Quality Home Loans' bankruptcy case, asks the United States Bankruptcy Court for the Central District of California for permission to employ Lewis R. Landau, Esq., as his general bankruptcy counsel. The firm will assist the Trustee in his duties pursuant to Section 1106 of the Bankruptcy Code, which services are not performed by alternate counsel duly employed for a specified special purpose. Mr. Lewis Landau charges $375 per hour for services rendered for this engagement. Linda Landau, a paralegal of the firm, bills $125 per hour. In addition, Mr. Landau also seeks the Court approval for monthly payment of 90% all fees and 100% of all cost on terms applicable to other professionals employed in this case. Mr. Landau assures the Court that the firm he does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Landau can be reached at: Lewis R. Landau, Esq. Attorney at Law 23564 Calabasas Road, Suite 104 Calabasas, CA 91302 Tel: (8880 822-4340 Based in Agoura Hills, California, Quality Home Loans -- http://www.qualityhomeloans.com/-- is a residential hard money lender. The company does business as Clear Credit Capital, Last Chance Home Loans, Last Option Lending, and Q.H.L. Investments. The company and its debtor-affiliates filed for Chapter 11 protection on Aug. 21, 2007 (Bankr. C.D. Calif. Case Nos. 07- 13003 through 07-13006). William N. Nobel, Esq. and Mike D. Neue, Esq. at Irell & Manella LLP represent the Debtors in their restructuring efforts. Eric. E. Sagerman, Esq. and David L. Wilson III, Esq. at Winston & Strawn LLP act as counsels to the Official Committee of Unsecured Creditors. David Gould, Chapter 11 Trustee, is represented by Lewis R Landau, Esq., at Lewis R Landau Attorney at Law. The Debtors' schedules disclose total assets of $130,319,336 and total debts of $177,043,476. REABLE THERA: Completes $1.5 Billion Merger Deal with DJO Inc. -------------------------------------------------------------- ReAble Therapeutics Inc. has completed its Agreement and Plan of Merger with DJO Incorporated on Nov. 20, 2007. The transaction is valued at approximately $1.5 billion. Pursuant to the terms of the merger agreement, holders of DJO's common stock will receive $50.25 in cash for each share of DJO common stock that they owned immediately prior to the effective time of the merger. As a result of the merger, DJO's common stock will cease to trade on the New York Stock Exchange at the close of the market on Nov. 20, 2007, and will be delisted. Financing for the merger was provided by the combination of an equity contribution from Blackstone Capital Partners V L.P., an affiliate of The Blackstone Group, and debt financing arranged by Credit Suisse and Bank of America. After the closing, ReAble Therapeutics Inc. will be renamed DJO Incorporated and will relocate its headquarters to Vista, California. "On behalf of both DJO and ReAble, I am extremely pleased that we have completed this transaction, which establishes our company as one of the largest global providers of solutions for musculoskeletal and vascular health," Les Cross, Chief executive office of the new DJO Incorporated, said. "Both organizations have enjoyed a proud history, with talented employees driving each company to a respected leadership position in their markets." "We continue to be very excited about the business prospects for the New DJO," Mr. Cross added. "This combination provides us with great opportunities to strengthen our value proposition for our customers in two important ways. First, the crossover of our distribution channels should provide our sales teams with significant cross-selling opportunities in global markets for the two companies' product lines, providing our customers with one- stop access to some of the best brands in the business." "Second, the merger accelerates the pace of innovation within the new DJO," he ended. "From the collaboration of our product development teams we can bring unique new products to market that better serve the needs of our customers and their patients." About DJO Incorporated Headquartered in Vista, California, DJO Incorporated - http://www.djortho.com/-- is a provider of solutions for musculoskeletal and vascular health, specializing in rehabilitation and regeneration products for the non-operative orthopedic, spine and vascular markets. Marketed under the Aircast(R), DonJoy(R) and ProCare(R) brands, the company's range of over 750 rehabilitation products, including rigid knee braces, soft goods and cold therapy products, are used in the prevention of injury, in the treatment of chronic conditions and for recovery after surgery or injury. The company sells its products in the United States and in more than 75 other countries through networks of agents, distributors and its own direct sales force. About ReAble Therapeutics Inc. ReAble Therapeutics Inc. -- http://www.reableinc.com/-- is a diversified orthopedic device company that develops, manufactures and distributes a comprehensive range of high quality orthopedic devices used by orthopedic surgeons, physicians, therapists, athletic trainers and other healthcare professionals to treat patients with musculoskeletal conditions resulting from degenerative diseases, deformities, traumatic events and sports- related injuries. Through its Orthopedic Rehabilitation Division, ReAble is a distributor of electrical stimulation and other orthopedic products used for pain management, orthopedic rehabilitation, physical therapy, fitness and sport performance enhancement. ReAble's Surgical Implant Division offers a comprehensive suite of reconstructive joint products. * * * Moodys's Investor Services placed Reable Therapeutics Inc.'s long term corporate family and probability of default ratings at 'B2' in July 2007. RESIDENTIAL ASSET: S&P Junks Rating on S.2004-F Class B-5 Trust --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on class B-5 from Residential Asset Securitization Trust 2004-A6's series 2004- F to 'CCC' from 'B'. At the same time, S&P placed its rating on class B-4 from series 2004-F on CreditWatch with negative implications. Furthermore, S&P raised its ratings on six classes from series 2002-L, 2002-O, and 2003-B. Finally, S&P affirmed its ratings on 275 classes from these and other Residential Asset Securitization Trust transactions. The downgrade of class B-5 from series 2004-F and the CreditWatch placement of class B-4 from the same series reflect high delinquencies relative to the available credit support in the deal. Although the transaction has not incurred any losses to date, the deal has seen a steady increase in the delinquency pipeline over the past six months. Current credit support is 0.07% of the current pool balance, and future credit support is projected to be significantly lower than the original credit support. As of the October 2007 remittance period, total delinquencies were 4.72% of the current pool balance, and severe delinquencies (90-plus days, foreclosures, and REOs) were 1.53% of the current pool balance. The upgrades reflect the strong performance of the mortgage loan pools, along with actual and projected credit support percentages that adequately support the raised ratings. Currently, the upgraded certificates have at least 2.0x the original loss coverage levels associated with the raised ratings and should be sufficient to support them at the upgraded levels. As of the October 2007 remittance period, cumulative losses for these transactions ranged from 0.00024% (series 2002-L) to 0.13% (series 2002-O) of the original pool balances, total delinquencies ranged from 3.53% (series 2003-B) to 11.80% (series 2002-O) of the current pool balances, and severe delinquencies ranged from 0.00% (series 2002-L) to 5.57% (series 2002-O) of the current pool balances. All of these transactions, with the exception of series 2003-B, have paid down to less than 10% of their original principal balances. Approximately 19.58% of the original principal balance is still outstanding for series 2003-B. The affirmations reflect stable collateral performance as of the October 2007 remittance period. Actual and projected credit support percentages are sufficient to support the certificates at their current rating levels. Cumulative losses for these transactions ranged from 0.00% (series 2003-A6, 2003-A8, and 2003- A12) to 2.29% (series 2000-A6) of the original pool balances, total delinquencies ranged from 0.60% (series 2003-A8) to 40.79% (series 2000-A6) of the current pool balances, and severe delinquencies ranged from 0.00% (series 2003-A8 and 2003-A12) to 14.90% (series 2000-A6) of the current pool balances. Subordination primarily provides credit support for these transactions. The underlying collateral for these series consists primarily of Alternative-A, fixed-rate, fully amortizing conventional mortgage loans secured by first liens on one- to four-family residential properties. Rating Lowered Residential Asset Securitization Trust Rating ------ Trust Series Class To From ----- ------ ----- -- ---- 2004-A6 2004-F B-5 CCC B Rating Placed on Creditwatch Negative Residential Asset Securitization Trust Rating ------ Trust Series Class To From ----- ------ ----- -- ---- 2004-A6 2004-F B-4 BB/Watch Neg BB Ratings Raised Residential Asset Securitization Trust Rating ------ Trust Series Class To From ----- ------ ----- -- ---- 2002-A12 2002-L B-2 AAA AA+ 2002-A12 2002-L B-3 AA+ AA- 2002-A15 2002-O B-1 AAA AA 2002-A15 2002-O B-2 AA A 2003-A2 2003-B B-2 AA AA- 2003-A2 2003-B B-3 BBB+ BBB Ratings Affirmed Residential Asset Securitization Trust Trust Series Class Rating ----- ------ ----- ------ 1999-A3 1999-C A-1, PO, X, B-1, B-2 AAA 1999-A3 1999-C B-3 AA 2000-A6 2000-F X AAA 2002-A12 2002-L A-4, PO, A-X, 2-A-9 AAA 2002-A12 2002-L B-1 AAA 2002-A13 2002-M A-4, A-5, A-6, PO, A-X AAA 2002-A13 2002-M B-1 AA+ 2002-A13 2002-M B-2 AA 2002-A13 2002-M B-3 A 2002-A14J 2002-N A-4, A-9, A-10, PO, A-X AAA 2002-A14J 2002-N B-1 AA+ 2002-A14J 2002-N B-2 AA 2002-A14J 2002-N B-3 A+ 2002-A15 2002-O A-11, PO, A-X AAA 2002-A15 2002-O B-3 BBB 2002-A16 2002-P A-2, A-3, PO, A-X AAA 2002-A16 2002-P B-1 AA+ 2002-A16 2002-P B-2 AA 2002-A16 2002-P B-3 A- 2003-A1 2003-A A-1, A-2, A-3, A-4 AAA 2003-A1 2003-A A-11, A-12, PO, A-X AAA 2003-A1 2003-A B-1 AA+ 2003-A1 2003-A B-2 AA 2003-A1 2003-A B-3 A 2003-A2 2003-B A-1, A-2, A-3 AAA 2003-A2 2003-B A-7, A-8, A-9, PO, A-X AAA 2003-A2 2003-B B-1 AA+ 2003-A2 2003-B B-4 BB 2003-A2 2003-B B-5 B 2003-A4 2003-D A-1, A-2, A-3, A-4 AAA 2003-A4 2003-D A-9, PO, A-X AAA 2003-A4 2003-D B-1 AA 2003-A4 2003-D B-2 A 2003-A4 2003-D B-3 BBB 2003-A5 2003-E A-1, A-2, A-3, A-4, A-5, A-6 AAA 2003-A5 2003-E A-7, PO, A-X AAA 2003-A5 2003-E B-1 AA 2003-A5 2003-E B-2 A 2003-A5 2003-E B-3 BBB 2003-A5 2003-E B-4 BB 2003-A6 2003-F A-1, A-2, A-3, A-4, A-5 AAA 2003-A5 2003-E B-5 B 2003-A6 2003-F A-6, A-7, PO, A-X AAA 2003-A6 2003-F B-1 AA 2003-A6 2003-F B-2 A 2003-A6 2003-F B-3 BBB 2003-A6 2003-F B-4 BB 2003-A6 2003-F B-5 B 2003-A7 2003-G A-2, A-3, A-4, A-5, A-7, A-8 AAA 2003-A7 2003-G A-9, A-10, A-11, A-12 AAA 2003-A7 2003-G PO, A-X AAA 2003-A7 2003-G B-1 AA 2003-A7 2003-G B-2 A 2003-A7 2003-G B-3 BBB 2003-A7 2003-G B-4 BB 2003-A7 2003-G B-5 B 2003-A8 2003-H A-1, A-2, A-3, A-4, A-5 AAA 2003-A8 2003-H PO, A-X AAA 2003-A8 2003-H B-1 AA 2003-A8 2003-H B-2 A 2003-A8 2003-H B-3 BBB 2003-A8 2003-H B-4 BB 2003-A8 2003-H B-5 B 2003-A9 2003-I A-1, A-2, A-3, A-4, A-5 AAA 2003-A9 2003-I A-7, A-8, PO, A-X AAA 2003-A9 2003-I B-1 AA 2003-A9 2003-I B-2 A 2003-A9 2003-I B-3 BBB 2003-A9 2003-I B-4 BB 2003-A9 2003-I B-5 B 2003-A10 2003-J A-1, A-2, A-3, A-4, A-5 AAA 2003-A10 2003-J PO, A-X AAA 2003-A10 2003-J B-1 AA 2003-A10 2003-J B-2 A 2003-A10 2003-J B-3 BBB 2003-A10 2003-J B-4 BB 2003-A10 2003-J B-5 B 2003-A11 2003-K A-2, A-3, A-6, A-8, A-9 AAA 2003-A11 2003-K PO, A-X AAA 2003-A11 2003-K B-1 AA 2003-A11 2003-K B-2 A 2003-A11 2003-K B-3 BBB 2003-A11 2003-K B-4 BB 2003-A11 2003-K B-5 B 2003-A12 2003-L A-1, A-2, A-3, PO, A-X AAA 2003-A12 2003-L B-1 AA 2003-A12 2003-L B-2 A 2003-A12 2003-L B-3 BBB 2003-A12 2003-L B-4 BB 2003-A12 2003-L B-5 B 2003-A13 2003-M A-1, A-2, A-3, A-4, A-5 AAA 2003-A13 2003-M PO, A-X AAA 2003-A13 2003-M B-1 AA 2003-A13 2003-M B-2 A 2003-A13 2003-M B-3 BBB 2003-A13 2003-M B-4 BB 2003-A13 2003-M B-5 B 2004-A4 2004-D A-1, A-2, A-3, A-4, A-5, A-6 AAA 2004-A4 2004-D A-7, A-8, A-9, A-10, A-11 AAA 2004-A4 2004-D A-13, A-14, A-15, PO, A-X AAA 2004-A4 2004-D B-1 AA 2004-A4 2004-D B-2 A 2004-A4 2004-D B-3 BBB 2004-A4 2004-D B-4 BB 2004-A4 2004-D B-5 B 2004-A5 2004-E A-1, PO, A-X AAA 2004-A5 2004-E B-1 AA 2004-A5 2004-E B-2 A 2004-A5 2004-E B-3 BBB 2004-A5 2004-E B-4 BB 2004-A5 2004-E B-5 B 2004-A6 2004-F A-1, PO, A-X AAA 2004-A6 2004-F B-1 AA 2004-A6 2004-F B-2 A 2004-A6 2004-F B-3 BBB 2004-A7 2004-G A-1, A-2, A-3, A-4, A-5 AAA 2004-A7 2004-G A-6, PO, A-X AAA 2004-A7 2004-G B-1 AA 2004-A7 2004-G B-2 A 2004-A7 2004-G B-3 BBB 2004-A7 2004-G B-4 BB 2004-A7 2004-G B-5 B 2004-A8 2004-H A-1, A-2, A-3, A-4, A-5, A-6 AAA 2004-A8 2004-H A-7, A-8, PO, A-X AAA 2004-A8 2004-H B-1 AA 2004-A8 2004-H B-2 A 2004-A8 2004-H B-3 BBB 2004-A8 2004-H B-4 BB 2004-A8 2004-H B-5 B 2004-A9 2004-I A-1, A-2, A-3, A-4, A-5 AAA 2004-A9 2004-I A-9, A-10, PO, A-X AAA 2004-A9 2004-I B-1 AA 2004-A9 2004-I B-2 A 2004-A9 2004-I B-3 BBB 2004-A9 2004-I B-4 BB 2004-A9 2004-I B-5 B 2004-A10 2004-J A-1, A-2, A-3, PO, A-X AAA 2004-A10 2004-J B-1 AA 2004-A10 2004-J B-2 A 2004-A10 2004-J B-3 BBB 2004-A10 2004-J B-4 BB 2004-A10 2004-J B-5 B SALOMON BROTHERS: Fitch Holds 'B-' Ratings on Two Cert. Classes --------------------------------------------------------------- Fitch Ratings has affirmed three and downgraded three from the following Salomon Brothers Mortgage Securities VII, Inc. mortgage pass-through certificate: Series 2002-CIT1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'BBB+'; -- Class M-3 downgraded to 'BB+' from 'BBB'; -- Class M-4 downgraded to 'B-/DR1' from 'BB'; -- Class M-5 downgraded to 'B-/DR2' from 'BB-'. The affirmations affect approximately $32 million of the outstanding certificates and reflect a stable relationship between credit enhancement and expected loss. The downgrades affect approximately $2.2 million of the outstanding certificates and reflect deterioration in the relationship between credit enhancement and expected losses. Since Fitch last took rating action on series 2002-CIT1 in April 2007, losses have generally continued to exceed excess spread and, as a result, continue to erode the overcollateralization below target. As of the October 2007 remittance date, the OC is $868,000 below the target of $1.2 million. The OC as a percent of the current collateral balance is 1.08% ($372,000). The cumulative loss as a percentage of the original collateral balance is 3.06% and the 60+ DQ as a percentage of the current collateral balance is 22.73%. Losses are expected to continue to exceed excess spread. The collateral of the above transaction consists of fixed-rate and adjustable-rate subprime mortgage loans secured by first and second liens on one- to four-family residential properties. The mortgage loans were originated by The CIT Group/Consumer Finance, Inc. and are serviced by Litton Loan Servicing LP, which is rated 'RPS1, Rating Watch Negative' by Fitch. Series 2002-CIT1 has a pool factor of 14% and is seasoned 65 months. SAN HOLDINGS: Files Chapter 7 Bankruptcy Petition in Colorado ------------------------------------------------------------- SAN Holdings Inc. and all of its subsidiaries filed a voluntary petition for relief under Chapter 7 of the United States Bankruptcy Code on Nov. 26, 2007, Monday. The bankruptcy petition was filed in the United States Bankruptcy Court for the District of Colorado. Jurisdiction was assumed on the date the bankruptcy was filed. The bankruptcy trustee has yet to be appointed. Resignation of Officers On the effective date of the bankruptcy, Todd A. Oseth voluntarily resigned as the chief executive officer, president and chairman of the board of directors of the company, from any committees on which he served and from any other positions held with the Company or its affiliates. The company is not aware of any matters of disagreement concerning operations, policies or practices between the company and Mr. Oseth causing his decision to resign. Also, on the effective date, David I. Rosenthal voluntarily resigned as chief financial officer, secretary and treasurer of the company. On the effective date, independent directors Kent J. Lund, George Rea, and Daryl Hollis each voluntarily resigned from the company's board of directors and from any committees on which they served. Road to Bankruptcy Sun Capital Partners II, LP, an affiliate of the majority shareholder of SAN Holdings, informed the company on Nov. 9, 2007, of its decision to cease funding the company, including through the $10 million credit facility that the company maintains with it. In addition, the company is in default under its credit agreements with Wells Fargo Bank, National Association and with the company's primary supplier, Avnet Inc. The company is exploring either a sale of the assets of the company or filing for bankruptcy. With respect to the former, the company engaged an investment banker in August of 2007 to assist the company in pursuing strategic alternatives and with respect to the latter, the company engaged bankruptcy counsel in November of 2007. In connection with exploring strategic alternatives, in August of 2007, the board formed a special committee consisting of Daryl Hollis, George Rea and Kent Lund, all independent members of the board. Letter of Default from Avnet The company purchases more than half of its products from Avnet. Avnet holds a security interest in all of the company's assets, whereby all indebtedness with Avnet is secured, except for $1,000,000. This security interest is subordinate to the security interest granted to Wells Fargo in connection with the company's borrowing facility with Wells Fargo. On Nov. 15, 2007, Avnet issued a letter of default to the company demanding immediate payment of all past due amounts (for a total of $1.3 million) and informing of its decision to cease selling to the company on trade credit terms. The company does not currently have sufficient liquidity to satisfy Avnet's demand of payment. As of Nov. 13, 2007, the total amount due to Avnet, including past due and current amounts, is $2.9 million. The company will be required to find other sources for the goods that it purchased from Avnet, and there is no assurance that we will be successful in finding alternative sources based on the company's current liquidity position. Default in Covenants with Wells Fargo The company has a revolving credit line with Wells Fargo to borrow up to $12.0 million, which is secured by substantially all assets of SANZ Inc. and Solunet Storage Inc., wholly owned subsidiaries or indirect subsidiaries of the company. As of Nov. 13, 2007, the company has approximately $3.0 million outstanding on this borrowing facility. The company's ability to borrow under the Wells Fargo facility is subject to the amount of the company's accounts receivable balance, as well as complying with the financial covenants under the borrowing facility. Financial covenants for 2007 are: (1) minimum net income (loss) on a year to date basis, calculated quarterly; (2) minimum net worth plus "subordinated debt" (measured in the aggregate, with amounts loaned to the Borrowers from San Holdings being defined as subordinated debt), calculated on a monthly basis; (3) minimum availability, calculated monthly; (4) capital expenditure limit, calculated on an annual basis; and (5) a minimum cash infusion from San Holdings or an outside source if the borrowers generate a net loss in a given quarter and have generated a net loss on a year to date basis at that time, in an amount equal to the lesser of the quarterly net loss or the year to date net loss. If the company is unable to comply with these financial covenants, the facility could cease to be available to the company. As of Nov. 13, 2007, the company is in default under certain of its covenants with Wells Fargo. Delayed Filing of Quarterly Report SAN Holdings said on Nov. 15, 2007, that it needs additional time is required to finalize its Quarterly Report on Form 10-Q for the quarter ended Sept. 30, 2007, and the financial statements for the quarter ended Sept. 30, 2007, required to be included therein due to the additional time required to finalize matters and disclosure relating to the company's liquidity position. About SAN Holdings Dallas, Texas-based SANZ Inc. (OTC BB: SNZH) -- http://www.sanz.com/-- provides comprehensive data storage and management solutions to its commercial, Federal, State and local government clients from multiple operating locations across the United States. SANZ is a wholly owned subsidiary of SAN Holdings Inc. The business operations of the companies are collectively referred to as "SANZ". SANZ designs and builds intelligent storage infrastructures that enable data-driven corporations and federal, state and local government agencies to maximize the value of their IT investments and secure their business-critical environments. SANZ delivers highly effective, scalable, service-level and policy-driven storage solutions that include product offerings from key technology partners such as: Data Domain, Cisco, EMC, HP, Hitachi Data Systems, Kazeon, NetApp and Qualstar. SEQUOIA ALTERNATIVE: Moody's Cuts Rating on Class B-2 Loan to B1 ---------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 2 tranches and has placed under review for possible downgrade the rating of 1 tranche from Sequoia Alternative Loan Trust 2006-1. The collateral backing these classes consists of primarily first lien, adjustable-rate, Alt-A mortgage loans. The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non delinquent portion of the transaction. Issuer: Sequoia Alternative Loan Trust 2006-1 -- Cl. B-1 Currently Aa3 on review for possible downgrade, -- Cl. B-2, Downgraded to B1, previously A3, -- Cl. B-3, Downgraded to Caa2, previously Baa3. SKILLSOFT PLC: Net Income Lowers to $6 Million in Third Quarter --------------------------------------------------------------- SkillSoft PLC reported financial results for its third fiscal quarter of fiscal 2008. The company reported net income of $6 million for the fiscal 2008 third quarter compared to net income of $7.1 million for the fiscal 2007 third quarter. The company's net income results include restatement expenses of $0.1 million in the third quarter of both fiscal 2008 and 2007, well as the acquisition related expenses and non-cash charges: a) Acquisition and integration related expenses: -- merger related integration costs of $2.6 million in the third quarter of fiscal 2008; -- loss from discontinued operations net of tax of $0.2 million in the third quarter of fiscal 2008. b) Non-Cash Charges: -- stock based compensation expense of $1.4 million in the third quarter of fiscal 2008 and $0.8 million in the third quarter of fiscal 2007; -- amortization of intangible assets of $5.4 million in the third quarter of fiscal 2008 and $1.2 million in the third quarter of fiscal 2007; -- amortization of deferred financing costs of $0.2 million in the third quarter of fiscal 2008; -- non-cash provision for income tax of $0.3 million in the third quarter of fiscal 2008 and $3.8 million in the third quarter of fiscal 2007. For nine months ended Oct. 31, 2007, the company reported net income of $25.9 million compared to a net income of $15.9 million for the same period in the previous year. SkillSoft had approximately $54.5 million in cash, cash equivalents, short-term investments, restricted cash and long-term investments as of Oct. 31, 2007 as compared to $127.8 million as of Jan. 31, 2007. This decrease reflects cash used, net of cash acquired, of $279 million in connection with the NETg acquisition. This decrease was partially offset by cash provided by operations of $8.5 million, net borrowings under long-term debt of $194 million, proceeds from the exercise of stock options and employee stock purchase activity of $11.1 million and $38.8 million of net investment maturities. At Oct. 31, 2007, the company's balance sheet showed total assets of $586.7 million, total liabilities of $410.1 million and total stockholders' equity of $176.6 million. About SkillSoft Public Limited Company Based in Nashua, New Hampshire, SkillSoft Public Limited Company (NASDAQ:SKIL) -- http://www.skillsoft.com/-- is a provider of e-learning and performance support solutions for global enterprises, government, education and small- to medium- size businesses. SkillSoft helps companies to maximize employee performance through a combination of content, online information resources, flexible technologies and support services. * * * As of Sept. 4, 2007, the company holds Standard & Poor's "B+" long-term foreign and local issuer credits ratings. SOUNDVIEW HOME: Fitch Cuts Rating on $5.2 Million Certs. to B ------------------------------------------------------------- Fitch Ratings has taken these rating actions on Soundview Home Equity Loan Trust asset-backed certificates. Affirmations total $1.23 billion and downgrades total $78.2 million. In addition, approximately $12.8 million is placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Soundview 2005-1 -- $34 million class M-1 affirmed at 'AA+' (BL: 83.85, LCR: 5.94); -- $25.3 million class M-2 affirmed at 'AA' (BL: 65.55, LCR: 4.64); -- $22.6 million class M-3 affirmed at 'AA-' (BL: 49.04, LCR: 3.47); -- $19.5 million class M-4 affirmed at 'A' (BL: 35.94, LCR: 2.55); -- $12.1 million class M-5 affirmed at 'A-' (BL: 27.68, LCR: 1.96); -- $10.9 million class M-6 affirmed at 'A-' (BL: 23.13, LCR: 1.64); -- $10.9 million class M-7 affirmed at 'BBB+' (BL: 20.26, LCR: 1.43); -- $7 million class M-8 affirmed at 'BBB' (BL: 18.25, LCR: 1.29); -- $3.2 million class M-9 rated 'BBB-', placed on Rating Watch Negative (BL: 15.98, LCR: 1.13); -- $5.3 million class B-1 downgraded to 'BB-' from 'BB+' (BL: 12.54, LCR: 0.89). Deal Summary -- Originators: (Various); -- 60+ day Delinquency: 28.68%; -- Realized Losses to date (% of Original Balance): 3.26%; -- Expected Remaining Losses (% of Current Balance): 14.12%; -- Cumulative Expected Losses (% of Original Balance): 7.71%. Soundview 2005-2 -- $17.4 million class A affirmed at 'AAA' (BL: 95.9, LCR: 5.05); -- $30.8 million class M-1 affirmed at 'AA+' (BL: 77.39, LCR: 4.07); -- $20.7 million class M-2 affirmed at 'AA' (BL: 62.22, LCR: 3.27); -- $10.4 million class M-3 affirmed at 'AA-' (BL: 55.94, LCR: 2.94); -- $9.6 million class M-4 affirmed at 'A+' (BL: 49.37, LCR: 2.6); -- $9.1 million class M-5 affirmed at 'A' (BL: 34.21, LCR: 1.8); -- $8.3 million class M-6 affirmed at 'A-' (BL: 27.88, LCR: 1.47); -- $4.7 million class M-7 downgraded to 'BBB' from 'BBB+' (BL: 24.19, LCR: 1.27); -- $9.3 million class M-8 downgraded to 'BB' from 'BBB' (BL: 18.67, LCR: 0.98); -- $5.2 million class M-9 downgraded to 'B+' from 'BBB-' (BL: 16.55, LCR: 0.87); -- $5.2 million class B-1 downgraded to 'B' from 'BB+' (BL: 14.25, LCR: 0.75); -- $5.2 million class B-2 downgraded to 'CC/DR3' from 'BB'. Deal Summary -- Originators: (Various); -- 60+ day Delinquency: 27.55%; -- Realized Losses to date (% of Original Balance): 1.62%; -- Expected Remaining Losses (% of Current Balance): 19%; -- Cumulative Expected Losses (% of Original Balance): 7.04%. Soundview 2005-4 -- $248.3 million class A affirmed at 'AAA' (BL: 58.69, LCR: 3.65); -- $26.8 million class M-1A affirmed at 'AA+' (BL: 46.75, LCR: 2.91); -- $13.4 million class M-1B affirmed at 'AA+' (BL: 46.55, LCR: 2.9); -- $32.7 million class M-2 affirmed at 'AA+' (BL: 41.25, LCR: 2.57); -- $20.3 million class M-3 affirmed at 'AA' (BL: 37.13, LCR: 2.31); -- $18.1 million class M-4 affirmed at 'AA-' (BL: 33.28, LCR: 2.07); -- $17.2 million class M-5 affirmed at 'A+' (BL: 29.61, LCR: 1.84); -- $15 million class M-6 affirmed at 'A' (BL: 26.29, LCR: 1.64); -- $12.4 million class M-7 affirmed at 'A-' (BL: 23.34, LCR: 1.45); -- $11.9 million class M-8 downgraded to 'BBB' from 'BBB+' (BL: 20.59, LCR: 1.28); -- $10.2 million class M-9 downgraded to 'BBB-' from 'BBB' (BL: 18.45, LCR: 1.15); -- $7.5 million class M-10 downgraded to 'BB+' from 'BBB-' (BL: 17.01, LCR: 1.06); -- $8.8 million class M-11 downgraded to 'BB' from 'BB+', and removed from Rating Watch Negative (BL: 15.68, LCR: 0.98). Deal Summary -- Originators: (Various); -- 60+ day Delinquency: 22.30%; -- Realized Losses to date (% of Original Balance): 1.70%; -- Expected Remaining Losses (% of Current Balance): 16.06%; -- Cumulative Expected Losses (% of Original Balance): 11.38%. Soundview 2005-DO1 -- $53.8 million class A affirmed at 'AAA' (BL: 81.21, LCR: 6.4); -- $21.7 million class M-1 affirmed at 'AA+' (BL: 68.87, LCR: 5.43); -- $18.2 million class M-2 affirmed at 'AA+' (BL: 58.54, LCR: 4.61); -- $11.4 million class M-3 affirmed at 'AA' (BL: 52.01, LCR: 4.1); -- $10.5 million class M-4 affirmed at 'AA-' (BL: 44.37, LCR: 3.5); -- $9.5 million class M-5 affirmed at 'A+' (BL: 27.58, LCR: 2.17); -- $9.2 million class M-6 affirmed at 'A' (BL: 24.42, LCR: 1.93); -- $7.7 million class M-7 affirmed at 'A-' (BL: 21.89, LCR: 1.73); -- $5.9 million class M-8 affirmed at 'BBB+' (BL: 20, LCR: 1.58); -- $6.2 million class M-9 affirmed at 'BBB' (BL: 17.92, LCR: 1.41); -- $6.2 million class M-10 affirmed at 'BB+' (BL: 15.86, LCR: 1.25); -- $6.2 million class M-11 rated 'BB', placed on Rating Watch Negative (BL: 13.87, LCR: 1.09); -- $3.4 million class B-1 rated 'BB-', placed on Rating Watch Negative (BL: 13.01, LCR: 1.03); -- $4.9 million class B-2 downgraded to 'CCC/DR1' from 'B+'. Deal Summary -- Originators: (Decision One); -- 60+ day Delinquency: 26.60%; -- Realized Losses to date (% of Original Balance): 0.99%; -- Expected Remaining Losses (% of Current Balance): 12.68%; -- Cumulative Expected Losses (% of Original Balance): 4.63%. Soundview 2005-OPT1 -- $192 million class A affirmed at 'AAA' (BL: 63.73, LCR: 9.32); -- $37.5 million class M-1 affirmed at 'AAA' (BL: 53.33, LCR: 7.79); -- $66 million class M-2 affirmed at 'AA+' (BL: 37.85, LCR: 5.53); -- $27.8 million class M-3 affirmed at 'AA' (BL: 27.83, LCR: 4.07); -- $17.3 million class M-4 affirmed at 'AA-' (BL: 16.69, LCR: 2.44); -- $17.3 million class M-5 affirmed at 'A+' (BL: 14.64, LCR: 2.14); -- $22.5 million class M-6 affirmed at 'A' (BL: 11.93, LCR: 1.74); -- $11.3 million class M-7 affirmed at 'A-' (BL: 10.54, LCR: 1.54); -- $15 million class M-8 affirmed at 'BBB+' (BL: 8.93, LCR: 1.31); -- $7.5 million class M-9 affirmed at 'BBB' (BL: 8.63, LCR: 1.26); -- $7.5 million class M-10 affirmed at 'BBB-' (BL: 8.62, LCR: 1.26). Deal Summary -- Originators: (Option One); -- 60+ day Delinquency: 24.44%; -- Realized Losses to date (% of Original Balance): 0.49%; -- Expected Remaining Losses (% of Current Balance): 6.84%; -- Cumulative Expected Losses (% of Original Balance): 2.45%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. SOUNDVIEW HOME: High Delinqeuncy Cues Moody's to Cut Ratings ------------------------------------------------------------ Moody's Investors Service has downgraded the ratings of 4 tranches from Soundview Home Loan Trust 2006-WF1. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were downgraded based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non delinquent portion of the transaction. Issuer: Soundview Home Loan Trust 2006-WF1 -- Cl. M-7, Downgraded to Baa2, previously Baa1, -- Cl. M-8, Downgraded to Baa3, previously Baa2, -- Cl. M-9, Downgraded to Ba1, previously Baa3, -- Cl. M-10, Downgraded to Ba2, previously Ba1. STAGE DOOR: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Stage Door Development, Inc. dba WRJM-FM 285 East Broad Street Ozark, AL 36360 Bankruptcy Case No.: 07-11638 Chapter 11 Petition Date: November 26, 2007 Court: Middle District of Alabama (Dothan) Debtor's Counsel: Collier H. Espy, Jr., Esq. Espy, Metcalf & Espy, P.C. P.O. Drawer 6504 Dothan, AL 36302-6504 Tel: (334) 793-6288 Fax: (334) 712-1617 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's list of its 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service 941 Taxes $7,450 801 Tom Martin Drive Jan. 11, 2007 Suite 126 Birmingham, AL 35211 940 & 941 Taxes $7,256 Nov. 28, 2005 941 Taxes $19,217 June 30, 2005 940 & 941 Taxes $71,891 Dec. 7, 2004 Payroll Taxes $190,000 Arbitron Inc. NY Summary Judgment $260,000 142 57th Street New York, NY 10019 Ascap Joel Music Summary Judgment $100,000 c/o Bradly Arant 1819 5th Avenue North Birmingham, AL 35203-2119 Bradley Arant Attorney fees $65,000 Alabama Dept. of Revenue Withholding Taxes $4,189 May 16, 2005 Withholding Taxes $2,778 March 11, 2005 Withholding Taxes $1,633 Sept. 12, 2005 Withholding Taxes $1,434 Oct. 31, 2005 Payroll Taxes $31,000 Ascap Simpleville Music Summary Judgment $48,000 Wiregrass Electric Coop. Utility Service $18,000 Conner Vernon Jerome Jackson Judgment $15,354 Ross Tower Co., Inc. Lighting Services $10,065 Edith Windham Tower Site Lease $4,500 R&R $1,750 Fuellgraf Chimney & Tower Inc. $1,041 STRUCTURED ADJUSTABLE: Moody's Cuts Rating on Class B6-I to B1 -------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 4 tranches from Structured Adjustable Rate Mortgage Loan Trust 2005-21. The collateral backing these classes consists of primarily first lien, adjustable-rate, Alt-A mortgage loans. The ratings were downgraded based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non delinquent portion of the transaction. Issuer: Structured Adjustable Rate Mortgage Loan Trust 2005-21 -- Cl. B3-I, Downgraded to A3, previously A2, -- Cl. B4-I, Downgraded to Baa2, previously A3, -- Cl. B5-I, Downgraded to Ba1, previously Baa2, -- Cl. B6-I, Downgraded to B1, previously Baa3. STRUCTURED ASSET: S&P Assigns Default Rating on Class B2 Certs. --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on seven classes of pass-through certificates from Structured Asset Securities Corp.'s series 2003-BC2, 2003-BC3, and 2004-SC1 and removed four of the lowered ratings from CreditWatch with negative implications. At the same time, S&P placed one rating from series 2002-HF1 on CreditWatch with negative implications, and three ratings from series 2002-HF2 and 2003-BC2 remain on CreditWatch negative. Lastly, S&P affirmed its ratings on 57 classes from 13 series. The downgrades reflect collateral performance that has eroded available credit support during recent months. As of the October 2007 remittance period, cumulative losses ranged from 1.26% (series 2004-SC1) to 7.0% (series 2003-BC2) of the original principal balances. Serious delinquencies (90-plus days, foreclosures, and REOs) ranged from 7.95% (series 2004-SC1) to 23.66% (series 2003-BC3) of the current principal balances. S&P placed its rating on class M3 from series 2002-HF1 on CreditWatch negative because realized losses are eroding overcollateralization. S&P removed its ratings on classes B, B1, and B5 from series 2003-BC2 and 2004-SC1, respectively, from CreditWatch negative because S&P lowered the ratings to 'CCC'. According to Standard & Poor's surveillance practices, ratings lower than 'B-' on classes of certificates or notes from RMBS transactions are not eligible to be on CreditWatch negative. Standard & Poor's will continue to closely monitor the performance of the transactions with ratings on CreditWatch. If monthly losses decline to a point at which they no longer outpace monthly excess interest and the level of O/C has not been further eroded, S&P will affirm the ratings and remove them from CreditWatch. Conversely, if losses continue to outpace excess interest and O/C levels continue to decline, S&P will take further negative rating actions. The affirmations reflect stable collateral performance as of the October 2007 remittance period. Current and projected credit support percentages are sufficient to support the ratings at their current levels. O/C, excess spread, and subordination provide credit enhancement for these transactions, with the exception of series 2004-SC1, which has subordination only. At issuance, the collateral backing these Structured Asset Securities Corp. series consisted of subprime, fixed- and adjustable-rate, fully amortizing first-lien mortgage loans secured by one- to four-family residential properties. Ratings Lowered Structured Asset Securities Corp. Rating ------ Series Class To From ------ ----- -- ---- 2003-BC2 B2 D CCC 2003-BC3 M4 BB BBB 2004-SC1 B4 B BB Ratings Lowered and Removed from Creditwatch Negative Structured Asset Securities Corp. Rating ------ Series Class To From ------ ----- -- ---- 2003-BC3 M5 B BBB-/Watch Neg 2003-BC3 B CCC B/Watch Neg 2003-BC2 B1 CCC B/Watch Neg 2004-SC1 B5 CCC B/Watch Neg Rating Placed on Creditwatch Negative Structured Asset Securities Corp. Rating ------ Series Class To From ------ ----- -- ---- 2002-HF1 M3 BBB/Neg Watch BBB Ratings Remaining on Creditwatch Negative Structured Asset Securities Corp. Series Class Rating ------ ----- ------ 2002-HF2 B1 BBB-/Watch Neg 2003-BC2 M3 BBB+/Watch Neg 2003-BC2 M4 BB/Watch Neg Ratings Affirmed Structured Asset Securities Corp. Series Class Rating ------ ----- ------ 1998-2 A AAA 1998-2 M-1 AA 1998-6 B-1 AA 1998-6 B-2 A 1998-8 A-3 AAA 1998-8 M-1 AA 1998-8 M-2 A 1999-SP1 A1, A2 AAA 1999-SP1 M1 AA+ 1999-SP1 M2 A 1999-SP1 B BBB 2002-HF1 A AAA 2002-HF1 M1 AA 2002-HF1 M2 A 2002-HF2 M1 AA 2002-HF2 M2 A 2002-HF2 M3 BBB 2003-AM1 M1 AA 2003-AM1 M2 A 2003-AM1 M3 A- 2003-AM1 B2 BB+ 2003-BC2 M1 AA 2003-BC2 M2 A 2003-BC3 M1 AA 2003-BC3 M2 A 2003-BC3 M3 A- 2003-39EX M2 A 2003-39EX M3 BBB 2003-39EX B BBB- 2004-16XS A2, A3A, A3B, A4A, A4B AAA 2004-16XS M1 AA+ 2004-16XS M2 AA- 2004-16XS M3 BBB- 2004-19XS A2, A3A, A3C, A4 AAA 2004-19XS A3B, A5, A6B, A6C, A6A AAA 2004-19XS M1 AA 2004-19XS M2 A 2004-19XS M3 BBB 2004-SC1 A AAA 2004-SC1 B1 AA 2004-SC1 B2 A 2004-SC1 B3 BBB SUNTRUST ALTERNATIVE: Moody's Junks Rating on Class B-3 Loans ------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 2 tranches and has placed under review for possible downgrade the ratings of 7 tranches from SunTrust Alternative Loan Trust 2006-1F. The collateral backing these classes consists of primarily first lien, fixed-rate, Alt-A mortgage loans. The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non delinquent portion of the transaction. Issuer: SunTrust Alternative Loan Trust 2006-1F -- Cl. I-A-1 Currently Aaa on review for possible downgrade, -- Cl. I-A-2 Currently Aaa on review for possible downgrade, -- Cl. I-A-3 Currently Aaa on review for possible downgrade, -- Cl. I-A-4 Currently Aaa on review for possible downgrade, -- Cl. II-A Currently Aaa on review for possible downgrade, -- Cl. III-A Currently Aaa on review for possible downgrade, -- Cl. B-1 Currently Aa2 on review for possible downgrade, -- Cl. B-2, Downgraded to B1, previously A2, -- Cl. B-3, Downgraded to Caa3, previously Baa2. TERWIN MORTGAGE: Fitch Downgrades Ratings on $9.4 Million Certs. ---------------------------------------------------------------- Fitch Ratings has taken these rating actions on Terwin Mortgage Trust asset-backed certificates. Affirmations total $132.7 million and downgrades total $9.4 million. Break Loss percentages and Loss Coverage Ratios for each class, rated B or higher, is included with the rating actions as: Terwin 2005-5SL -- $19.8 million class M-1a affirmed at 'AA' (BL: 94.91, LCR: 3.16); -- $3.2 million class M-1b affirmed at 'AA' (BL: 93.20, LCR: 3.1); -- $30.9 million class M-2 affirmed at 'A' (BL: 72.86, LCR: 2.43); -- $19.5 million class M-3 affirmed at 'A-' (BL: 59.88, LCR: 1.99); -- $19.5 million class B-1 affirmed at 'BBB+' (BL: 47.09, LCR: 1.57); -- $19.7 million class B-2 affirmed at 'BBB-' (BL: 33.49, LCR: 1.11); -- $9.4 million class B-3 downgraded to 'B' from 'BB+' (BL: 26.90, LCR: 0.9); -- $19.7 million class B-4 revised to 'C/DR6' from 'C/DR5'; -- $555,647 class B-5 remains at 'C/DR6'. Deal Summary -- Originators: (Various); -- 60+ day Delinquency: 12.62%; -- Realized Losses to date (% of Original Balance): 5.56%; -- Expected Remaining Losses (% of Current Balance): 30.04%; -- Cumulative Expected Losses (% of Original Balance): 12.14%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2006 and late 2005 with regard to continued poor loan performance and home price weakness. Minimum LCRs specifically for subprime second lien transactions are as follows: 'AAA': 2.00; 'AA': 1.75; 'A': 1.50; 'BBB': 1.20; 'BB': 0.95; 'B': 0.75. TESORO CORP: Rights Plan Raises Concern from Tracinda Corp. ----------------------------------------------------------- Tracinda Corporation stated that the adoption of a rights plan by the board of directors of Tesoro Corporation has resulted in a failure of a condition to Tracinda's tender offer for shares of Tesoro common stock. On Nov. 21, 2007, Tesoro's board has unanimously adopted a Stockholder Rights Plan. The rights plan is designed to reduce the likelihood that a potential acquirer would gain control of Tesoro by open market accumulation or other coercive takeover tactics without paying a premium for all of the company's shares. To implement the plan, Tesoro's board declared that each stockholder of record on Dec. 3, 2007, will receive a dividend of one right for each outstanding share of Common Stock held. The change in Tesoro's capitalization resulting from the rights plan, including, the potential dilutive effect thereof, negatively impacts all Tesoro stockholders, including Tracinda. Among other things, the rights plan significantly limits opportunities to enhance stockholder value and restricts the ability of Tesoro stockholders to freely vote or sell their shares. As a result, in Tracinda's judgment, the rights plan has a material adverse effect on the value of the Tesoro common stock and is materially adverse to all Tesoro stockholders. Accordingly, Tracinda is weighing its alternatives with respect to its pending cash tender offer. Tracinda's cash tender offer at $64 per share for up to 21,875,000 shares of Tesoro common stock, or approximately 16% of the shares outstanding, commenced on Nov. 7, 2007, and is scheduled to expire at 11:59 p.m. ET on Dec. 6, 2007. There can be no assurance as to what actions Tracinda will or will not take with respect to its tender offer in light of the adoption of the announced rights plan by the Tesoro board of directors. About Tesoro Corp. Headquartered in San Antonio, Texas, Tesoro Corporation (NYSE: TSO) -- http://www.tsocorp.com/-- is an independent refiner and marketer of petroleum products. Tesoro, through its subsidiaries, operates seven refineries in the western United States with a combined capacity of approximately 660,000 barrels per day. Tesoro's retail-marketing system includes over 890 branded retail stations, of which over 450 are company operated under the Tesoro(R), Shell(R), Mirastar(R) and USA(R) brands. The company dislosed on Nov. 8, 2004, the change of the company's name from Tesoro Petroleum Corp. to Tesoro Corporation, effective immediately. * * * As reported in the Troubled Company Reporter on Oct. 30, 2007, Moody's changed its outlook on Tesoro Corporation's ratings (Ba1 corporate family rating, Ba1 senior unsecured notes rating, and Baa1 senior secured credit facility rating) to developing from positive following Tracinda Corporation's announcement that it is making a cash tender offer for an additional 16% of TSO's outstanding common stock at approximately a 12% premium from the prior closing price. TRADEX SWISS AG: Chapter 15 Petition Summary -------------------------------------------- Petitioner: Peter Lutz Romeo Da Rugna Norma Ceriani c/o Evan Fray-Witzer, Esq. 20 Park Plaza, Suite 804 Boston, Ma 02116 Tel: (617) 723-5630 Debtor: Tradex Swiss A.G. c/o Wuersch & Gering, L.L.P. 100 Wall Street, 21st Floor New York, NY 02116 Tel: (212) 509-5050 aka Tradex Handel & Beratungs A.G. aka Tradex Group, L.L.C. aka F.X. Play aka F.X. Nation Case No.: 07-17518 Type of Business: The Debtor is a Boston, Massachusetts-based foreign exchange trading shop whose registered office is in Firststrasse 15, 8835 Feusisberg, Zurich, Switzerland. See http://www.tradexfx.com/ On November 1, 2007, the Swiss Federal Banking Commission decreed that the unauthorized acceptance of investment funds from the public on a professional basis, the advertising of such acceptance to the public and the unofficial and unauthorized use of the term "bank" by the Debtor and also by Swiss Garant A.G. was all established to be in violation of the Federal Law on Banks and Savings Banks. The Commission also decreed that bankruptcy proceedings be instituted against the Debtor and Swiss Garant in November 2, 2007. Chapter 15 Petition Date: November 26, 2007 Court: District of Massachusetts (Boston) Petitioner's Counsel: Evan Fray-Witzer, Esq. 20 Park Plaza, Suite 804 Boston, Ma 02116 Tel: (617) 723-5630 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million TRANSOCEAN INC: UK Regulators Clear Way for GlobalSantaFe Merger ---------------------------------------------------------------- The Office of Fair Trading for the United Kingdom disclosed that, subject to satisfactory undertakings from the parties, it has decided not to refer the proposed merger of Transocean Inc. and GlobalSantaFe Corporation to the U.K. Competition Commission for further investigation. Instead, the OFT considers that the undertakings offered by the parties to divest the GlobalSantaFe floaters that would be working in the U.K. sector of the North Sea absent the merger will remedy the possible antitrust concerns identified in the course of its first stage review. The parties' offer of divestiture includes the GSF Arctic II and the GSF Arctic IV but does not include any jackup rigs. A third GlobalSantaFe floater presently working in the North Sea, the GSF Arctic III, is expected to leave the North Sea upon completion of its current contract, and on that basis was not included in the parties' offer. On Nov. 20, 2007, Transocean and GlobalSantaFe received approval from the Grand Court of the Cayman Islands of the proposed merger of GlobalSantaFe with a wholly owned subsidiary of Transocean and related transactions. About GlobalSantaFe GlobalSantaFe Corp. -- http://www.globalsantafe.com/-- is an offshore oil and gas drilling contractors and provider of drilling management services worldwide. The company owns or operates a contract drilling fleet of 37 premium jackup rigs; six heavy-duty, harsh environment jackups; 11 semisubmersibles and three dynamically positioned, ultra-deepwater drillships, as well as two semisubmersibles owned by third parties and operated under a joint venture agreement. About Transocean Headquartered in Houston, Texas, Transocean Inc. (NYSE: RIG) -- http://www.deepwater.com/-- is an offshore drilling contractor with a fleet of 81 mobile offshore drilling units. The company's mobile offshore drilling fleet consist of high-specification deepwater and harsh environment drilling units. * * * Moody's Investors Service recently downgraded the senior unsecured ratings for Transocean Inc. to Baa2 from Baa1 in conjunction with the pending merger with GlobalSantaFe. Moody's also downgraded GSF's senior unsecured ratings to Baa2 from Baa1 as Transocean will be assuming the debt for GSF. This concludes the ratings review for both Transocean and GlobalSantaFe. The outlook is stable. The ratings being downgraded for Transocean are: the senior unsecured shelf rating to (P)Baa2 from (P)Baa1, the subordinated shelf rating to (P)Baa3 from (P)Baa2, and the preferred shelf rating to (P)Ba1 from (P)Baa3. The ratings for GSF also being downgraded are: the senior unsecured shelf rating to (P)Baa2 from (P)Baa1, the subordinated shelf rating to (P)Baa3 from (P)Baa2, and the preferred shelf rating to (P)Ba1 from (P)Baa3. The shelf ratings for GSF will be withdrawn upon closing of the merger. UBS MASTR: Fitch Cuts Rating on $3.4MM Class M-10 Certs. to BB -------------------------------------------------------------- Fitch Ratings has taken these rating actions on UBS MASTR Asset Backed Securities mortgage pass-through certificates. Affirmations total $1.03 billion and downgrades total $3.4 million. In addition, approximately $54.8 million is placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2005-NC1 -- $48.9 million class M-1 affirmed at 'AA+' (BL: 79.59, LCR: 6.61); -- $41.1 million class M-2 affirmed at 'AA' (BL: 47.11, LCR: 3.91); -- $16.6 million class M-3 affirmed at 'AA-' (BL: 40.28, LCR: 3.35); -- $16.6 million class M-4 affirmed at 'A+' (BL: 30.40, LCR: 2.53); -- $17.1 million class M-5 affirmed at 'A' (BL: 22.38, LCR: 1.86); -- $13.7 million class M-6 affirmed at 'A-' (BL: 19.58, LCR: 1.63); -- $11.2 million class M-7 affirmed at 'BBB+' (BL: 17.22, LCR: 1.43); -- $9.8 million class M-8 affirmed at 'BBB' (BL: 15.24, LCR: 1.27); -- $11.2 million class M-9 rated 'BBB-', placed on Rating Watch Negative (BL: 13.14, LCR: 1.09); -- $3.4 million class M-10 downgraded to 'BB' from 'BBB-' (BL: 12.72, LCR: 1.06). Deal Summary -- Originators: New Century (100%); -- 60+ day Delinquency: 29.61%; -- Realized Losses to date (% of Original Balance): 0.73%; -- Expected Remaining Losses (% of Current Balance): 12.04%; -- Cumulative Expected Losses (% of Original Balance): 3.31%. Series 2005-NC2 -- $368.1 million class A affirmed at 'AAA' (BL: 43.33, LCR: 3.69); -- $31.1 million class M-1 affirmed at 'AA+' (BL: 37.65, LCR: 3.21); -- $27.9 million class M-2 affirmed at 'AA+' (BL: 32.53, LCR: 2.77); -- $19.4 million class M-3 affirmed at 'AA+' (BL: 28.25, LCR: 2.41); -- $13.9 million class M-4 affirmed at 'AA' (BL: 25.87, LCR: 2.20); -- $13 million class M-5 affirmed at 'AA-' (BL: 23.51, LCR: 2.00); -- $12.1 million class M-6 affirmed at 'A+' (BL: 21.20, LCR: 1.81); -- $11.7 million class M-7 affirmed at 'A-' (BL: 18.85, LCR: 1.61); -- $8.5 million class M-8 affirmed at 'BBB+' (BL: 17.12, LCR: 1.46); -- $9 million class M-9 affirmed at 'BBB' (BL: 15.31, LCR: 1.30); -- $6.3 million class M-10 rated 'BBB', remains on Rating Watch Negative (BL: 14.13, LCR: 1.20); -- $6.7 million class M-11 rated 'BBB-', remains on Rating Watch Negative (BL: 12.99, LCR: 1.11). Deal Summary -- Originators: New Century (100%); -- 60+ day Delinquency: 24.08%; -- Realized Losses to date (% of Original Balance): 0.24%; -- Expected Remaining Losses (% of Current Balance): 11.74%; -- Cumulative Expected Losses (% of Original Balance): 7.38%. Series 2005-OPT1 -- $136.8 million class A affirmed at 'AAA' (BL: 70.96, LCR: 10.81); -- $46.4 million class M-1 affirmed at 'AA+' (BL: 58.21, LCR: 8.87); -- $37.6 million class M-2 affirmed at 'AA+' (BL: 48.5, LCR: 7.39); -- $24.8 million class M-3 affirmed at 'AA+' (BL: 42.08, LCR: 6.41); -- $39.2 million class M-4 affirmed at 'AA' (BL: 17.01, LCR: 2.59); -- $13.6 million class M-5 affirmed at 'AA-' (BL: 15.38, LCR: 2.34); -- $15.2 million class M-6 affirmed at 'A+' (BL: 13.56, LCR: 2.07); -- $18.4 million class M-7 affirmed at 'A' (BL: 11.41, LCR: 1.74); -- $14.4 million class M-8 affirmed at 'A-' (BL: 9.66, LCR: 1.47); -- $15.2 million class M-9 rated 'BBB+', placed on Rating Watch Negative (BL: 8.06, LCR: 1.23); -- $8 million class M-10 rated 'BBB', placed on Rating Watch Negative (BL: 7.75, LCR: 1.18); -- $7.2 million class M-11 rated 'BBB-', placed on Rating Watch Negative (BL: 7.73, LCR: 1.18). Deal Summary -- Originators: Option One (100%); -- 60+ day Delinquency: 26.44%; -- Realized Losses to date (% of Original Balance): 0.51%; -- Expected Remaining Losses (% of Current Balance): 6.56%; -- Cumulative Expected Losses (% of Original Balance): 2.10%. WAMU COMMERCIAL: Fitch Affirms 'B-' Rating on $639,000 Certs. ------------------------------------------------------------- Fitch Ratings has affirmed WaMu Commercial Mortgage Securities Trust series 2006-SL1, commercial mortgage pass-through certificates, as: -- Interest-only class X at 'AAA'; -- $79.8 million class A at 'AAA'; -- $354.3 million class A-1A at 'AAA'; -- $10.2 million class B at 'AA'; -- $14.7 million class C at 'A'; -- $10.2 million class D at 'BBB+'; -- $7.0 million class E at 'BBB'; -- $3.8 million class F at 'BBB-'; -- $7.7 million class G at 'BB+'; -- $2.6 million class H at 'BB'; -- $2.6 million class J at 'BB-'; -- $1.9 million class K at 'B+'; -- $1.9 million class L at 'B'; -- $639,000 class M at 'B-'. The $9.6 million class N is not rated by Fitch. The rating affirmations reflect stable performance and limited amortization since issuance. As of the October 2007 distribution date, the transaction has paid down 0.9% to $506.9 million from $511.4 at issuance. The transaction remains diverse, with the top three and top 10 largest loans in the pool by balance representing 4.9% and 12.1%, respectively. There are currently two loans (0.6%) in special servicing. The largest specially serviced loan (0.4%) is an industrial/warehouse facility located in Brooklyn, New York. The loan is 90 days delinquent and the special servicer is currently pursuing foreclosure. The remaining specially serviced loan (0.2%) is a retail property located in Bronx, New York. The loan is 90 days delinquent and is also delinquent on taxes. The special servicer is pursuing foreclosure and appointment of a receiver at the property. Fitch has identified six loans (2.7%) as Fitch loans of concern for declines in performance, of the six, two are currently specially serviced. Fitch will continue to closely monitor these loans for any further declines in performance. WETCO RESTAURANT: Court OKs Sale of 20 Locations for $5.5 Million ----------------------------------------------------------------- WETCO Restaurant Group LLC obtained authority from the U.S. Bankruptcy Court for the Western District of Louisiana to sell 20 of its restaurant locations for $5.5 million in cash, Bill Rochelle of Bloomberg News reports. The sale consideration also comes along with a a credit bid of $5 million in debt for the franchiser and sole bidder, Church's Fried Chicken Inc., Bloomberg News adds. Headquartered in Baton Rouge, Louisiana, WETCO Restaurant Group LLC -- http://www.wetcorestaurantgroup.com/-- operates Quick- Service Restaurants. The company owns and operates 34 Church's Chicken restaurants: three in Chattanooga, Tennessee, and 31 in Louisiana. The company filed for chapter 11 protection on Sept. 28, 2007 (Bankr. W.D. La. Case No. 07-51169). The Debtor selected the Law Offices of Tom St. Germain LLC as its bankruptcy counsel. When the Debtor filed for bankruptcy, it listed total assets of $3,761,051 and total debts of $15,308,635. WOLVERINE TUBE: To Halt Decatur and Booneville Plumbing Operations ------------------------------------------------------------------ Wolverine Tube Inc. will discontinue its U.S. plumbing tube business and will close manufacturing facilities located in Decatur, Alabama and Booneville, Mississippi. U.S. plumbing tube sales were made through distributor channels. The actions are in line with Wolverine's strategy of focusing resources on the development and sale of high performance tubular products, fabricated tube assemblies and metal joining products that promote energy efficient heat transfer technology to an expanding market and global OEM customers. "The Decatur and Booneville operations primarily serve the U.S. copper plumbing tube and smooth industrial tube markets," Harold M. Karp, president and chief operating officer, stated. "Demand for copper plumbing tube has significantly declined over the last several years as a result of the substitution of plastic tube in residential construction. This trend is reinforced by high copper prices." "Additionally, the smooth industrial tube market is rapidly transitioning to a commodity market and the Decatur/Booneville cost structure is not competitive in either the plumbing or smooth tube markets," Mr. Karp added. "Wolverine's smooth tube requirements will be satisfied by a combination of production from other Wolverine locations and outsourcing." The company estimated an impairment and restructuring charge of approximately $72 million in connection with the closure of the Decatur and Booneville manufacturing facilities and cessation of those operations. Approximately $56 million of the impairment and restructuring charge will be a non-cash reduction of the carrying value of certain assets. Additionally, $16 million will be for cash charges related to severance, other employee related costs, plant closure and environmental expenses, of which $10 million is expected to be incurred in 2008 and the balance over the next 5 years. The Decatur and Booneville manufacturing operations have 440 full time and 50 temporary employees. The company anticipated that discontinuing its U.S. plumbing tube business and plant closings will generate approximately $26 million in cash from the realization of net working capital after cash costs to be incurred in 2008 for related severance and shutdown costs. Additionally, the company will eliminate approximately 40% of its corporate, general and administrative positions totaling approximately 40 employees. These positions will be eliminated in part due to the Decatur and Booneville closures and the company's strategic focus on value-added tubular product sales to global OEM customers. The company estimated $1 million in severance costs will be accrued in the current quarter related to the elimination of these positions. About Wolverine Tube Inc. Headquartered in Huntsville, Alabama, Wolverine Tube Inc. (OTC:WLVT) -- http://www.wlv.com/ and http://www.silvaloy.com/ manufactures and distributes copper and copper alloy tubular products, fabricated and metal joining products, well as rod and bar products. The company focuses on developing and manufacturing tubular products with heat transfer capabilities used in engineered applications. The company's major customers' headquarters are in North America and include commercial and residential air conditioning and refrigeration equipment manufacturers, appliance manufacturers, industrial equipment manufacturers, utilities and other power generating companies, refining and chemical processing companies, and plumbing wholesalers. Wolverine classifies products as commercial products, wholesale products, and rod, bar and other products. * * * As reported in the Troubled Company Reporter on Nov. 22, 2007, Moody's Investors Service confirmed Wolverine Tube's Caa2 corporate family rating, Caa2 probability of default rating, and Caa3 senior unsecured rating (LGD4, 63%). The rating outlook was revised to negative from ratings under review. * Continued Poor Credit Leads Fitch to Initiate Formal Review ------------------------------------------------------------- Continued credit deterioration with respect to underlying collateral has led Fitch to initiate a formal review of collateralized debt obligations backed all or in part by trust preferred securities issued by real estate investment trusts, homebuilders and financial institutions specializing in residential mortgage lending. As a result, Fitch has placed $5.4 billion of rated liabilities, across 120 classes of 15 TruPS CDOs, on Rating Watch Negative. With respect to five of the 15 transactions affected, Fitch has placed the entire capital structure on Rating Watch Negative. Fitch's rating actions follow those undertaken in September and August of this year, which reflected credit deterioration experienced up to that point in time with respect to underlying collateral. A complete list of transactions and classes placed on Rating Watch Negative is listed at the end of this rating action commentary. Fitch's rating actions reflect continued deterioration in the credit quality of underlying issuers of trust preferred securities and subordinated debt. In particular, the credit profiles of many homebuilders, mortgage REITs and specialty finance companies continue to decline. Fitch currently maintains a Negative Rating Outlook on the homebuilder, residential and commercial mortgage REIT sectors. The challenges facings these sectors are expected to be even more pronounced with respect to the smaller-sized, shadow-rated entities which typically characterize REIT TruPS CDO portfolios. Based on public and shadow ratings performed by Fitch, it is estimated that an average of 22.9% of the portfolios underlying the 15 CDOs are currently rated 'CCC+' or below, ranging between 6.6% and 45.8%. Since Fitch's last review of REIT TruPS CDOs in September, six underlying issuers representing a total exposure of $524.5 million have been identified by Fitch as exhibiting heightened credit risk, having either experienced a default or deferral on issued securities, a technical default, or ratings migrating to 'CC' or below, indicating that a default of some kind appears probable. Among these six identified credit risk securities is an underlying homebuilder which filed for bankruptcy protection on Nov. 9, 2007. REIT TruPS CDOs exhibit varying levels of credit enhancement and other structural protections to rated noteholders. In addition, the magnitude of exposure to troubled issuers varies transaction- to-transaction. While this makes comparisons across transactions difficult, Fitch expects that potential downgrades with respect to classes currently rated 'AAA' and 'AA' will be approximately one to two rating categories, remaining in the investment grade range and reflecting an increased probability of default as opposed to an expectation of a principal loss to such noteholders. Fitch expects potential rating actions with respect to more junior classes to be more pronounced, reflecting an increased expectation of potential principal loss to noteholders as a result of collateral defaults and deterioration. The credit risk to junior classes is likely to be exacerbated by the fact that collateral defaults and deterioration, in addition to reducing the principal balance available to support such notes, often enact cash trapping mechanisms which divert interest payments to senior classes from junior classes. Fitch has placed these REIT TruPS CDOs on Rating Watch Negative: Attentus CDO I, Ltd./LLC (Attentus I) -- $277,979,197 class A-1 'AAA'; -- $20,000,000 class A-2 'AAA'; -- $65,000,000 class B 'AA'; -- $10,000,000 class C-1 'AA-'; -- $35,000,000 class C-2A 'A-'; -- $30,000,000 class C-2B 'A-'; -- $20,000,000 class D 'BBB-'; -- $16,000,000 class E 'BB-'. Attentus CDO II, Ltd./LLC (Attentus II) -- $233,413,552 class A-1 'AAA'; -- $60,000,000 class A-2 'AAA'; -- $55,000,000 class A-3A 'AAA'; -- $5,000,000 class A-3B 'AAA'; -- $20,000,000 class B 'AA'; -- $32,000,000 class C 'A'; -- $29,000,000 class D 'BBB+'; -- $16,000,000 class E-1 'BBB-'; -- $2,000,000 class E-2 'BBB-'; -- $13,344,182 class F-1 'B+'; -- $5,128,687 class F-2 'B+'; -- $40,000,000 subordinated notes 'CCC'. Attentus CDO III, Ltd./LLC (Attentus III) -- $100,000,000 class A-2 'AAA'; -- $34,000,000 class B 'AA'; -- $16,000,000 class C-1 'A'; -- $15,000,000 class C-2 'A'; -- $10,000,000 class D 'A-'; -- $15,000,000 class E-1 'BBB'; -- $7,000,000 class E-2 'BBB'; -- $24,000,000 class F 'BB-'. Kodiak CDO I, Ltd./Inc. (Kodiak I) -- $83,000,000 class B 'AA'; -- $30,000,000 class C 'AA'; -- $13,000,000 class D-1 'AA-'; -- $5,000,000 class D-2 'AA-'; -- $29,000,000 class D-3 'AA-'; -- $5,000,000 class E-1 'A'; -- $29,000,000 class E-2 'A'; -- $7,000,000 class F 'BBB+'; -- $50,000,000 class G 'BB'; -- $27,706,772 class H 'B-'. Kodiak CDO II, Ltd./Inc. (Kodiak II) -- $81,000,000 class B-1 'AA+'; -- $5,000,000 class B-2 'AA+'; -- $38,000,000 class C-1 'AA-'; -- $2,000,000 class C-2 'AA-'; -- $36,000,000 class D 'A'; -- $35,000,000 class E 'BBB'; -- $43,000,000 class F 'BB'. Taberna Preferred Funding I, Ltd. (Taberna I) -- $320,495,956 class A-1A 'AAA'; -- $13,504,043 class A-1B 'AAA'; -- $87,000,000 class A-2 'AAA'; -- $64,000,000 class B-1 'AA'; -- $10,000,000 class B-2 'AA'; -- $37,750,000 class C-1 'A'; -- $25,750,000 class C-2 'A'; -- $4,500,000 class C-3 'A'; -- $13,500,000 class D 'BBB+'; -- $29,888,477 class E 'BBB'. Taberna Preferred Funding II, Ltd. (Taberna II) -- $379,205,399 class A-1A 'AAA'; -- $100,963,435 class A-1B 'AAA'; -- $9,480,135 class A-1C 'AAA'; -- $86,500,000 class A-2 'AAA'; -- $120,500,000 class B 'AA'; -- $73,750,000 class C-1 'BBB+'; -- $26,000,000 class C-2 'BBB+'; -- $15,000,000 class C-3 'BBB+'; -- $31,823,490 class D 'BBB'; -- $30,490,189 class E-1 'BB'; -- $10,213,826 class E-2 'BB'; -- $43,612,981 class F 'B'. Taberna Preferred Funding III, Ltd. (Taberna III) -- $91,250,000 class B-1 'AA'; -- $7,500,000 class B-2 'AA'; -- $36,500,000 class C-1 'A-'; -- $52,000,000 class C-2 'A-'; -- $43,750,000 class D 'BBB-'; -- $32,504,510 class E 'B+'. Taberna Preferred Funding IV, Ltd. (Taberna IV) -- $45,000,000 class C-1 'A-'; -- $20,000,000 class C-2 'A-'; -- $35,000,000 class C-3 'A-'; -- $21,000,000 class D-1 'BBB-'; -- $13,000,000 class D-2 'BBB-'; -- $24,375,000 class E 'B+'. Taberna Preferred Funding V, Ltd. (Taberna V) -- $60,000,000 class A-1LB 'AAA'; -- $90,000,000 class A-2L 'AA'; -- $50,000,000 class A-3L 'BBB'; -- $35,000,000 class A-3FV 'BBB'; -- $25,000,000 class A-3FX 'BBB'; -- $40,500,000 class B-1L 'B+'; -- $23,581,074 class B-2L 'CCC+'; -- $5,122,890 class B-2FX 'CCC+. Taberna Preferred Funding VI, Ltd. (Taberna VI) -- $49,490,200 class A-1A 'AAA'; -- $301,890,218 class A-1B 'AAA'; -- $90,000,000 class A-2 'AAA'; -- $18,000,000 class B 'AA+'; -- $97,000,000 class C 'AA'; -- $43,000,000 class D-1 'A-'; -- $10,000,000 class D-2 'A-'; -- $17,350,653 class E-1 'BBB-'; -- $17,354,535 class E-2 'BBB-'; -- $15,373,858 class F-1 'B+'; -- $10,251,050 class F-2 'B+'. Taberna Preferred Funding VII, Ltd. (Taberna VII) -- $50,000,000 class A-2LB 'AA'; -- $57,000,000 class A-3L 'A'; -- $40,000,000 class B-1L 'BBB'; -- $30,000,000 class B-2L 'BB-'. Taberna Preferred Funding VIII, Ltd. (Taberna VIII) -- $37,000,000 class E 'BBB'; -- $43,000,000 class F 'BB'. Trapeza CDO X, Ltd./Inc. (Trapeza X) -- $69,000,000 class A-2 'AAA'; -- $31,000,000 class B 'AA'; -- $21,000,000 class C-1 'A-'; -- $35,000,000 class C-2 'A-'; -- $22,000,000 class D-1 'BBB-'; -- $22,000,000 class D-2 'BBB-'; -- $39,500,000 subordinate notes 'B+'. Trapeza CDO XI, Ltd./Inc. (Trapeza XI) -- $53,000,000 class A-2 'AAA'; -- $20,000,000 class A-3 'AAA'; -- $25,000,000 class B 'AA'; -- $33,000,000 class C 'A'; -- $22,500,000 class D-1 'A-'; -- $18,500,000 class D-2 'A-'; -- $13,000,000 class E-1 'BBB'; -- $5,000,000 class E-2 'BBB'; -- $10,000,000 class F 'BB'. * Moody's Takes Rating Actions on Various Transactions ------------------------------------------------------ Moody's Investors Service has issued press releases on these rating actions: Downgrades IXIS Corporate and Investment Bank -- Bank Financial Strength ... to C from C+ Metallinvestbank JSCB -- NSR LT Bank Deposits ... to Baa1.ru from A3.ru Natixis -- Bank Financial Strength ... to C from C+ Structured Adjustable Rate Mortgage Loan Trust 2005-21 -- $90.17M affected -- STRUCT. Subordinate ... to A3 from A2 -- STRUCT. Subordinate ... to Baa2 from A3 -- STRUCT. Subordinate ... to Ba1 from Baa2 -- STRUCT. Subordinate ... to B1 from Baa3 Upgrades Cassa dei Risparmi di Forli e della Rom Spa -- $777.03M affected -- Senior Unsecured ... to A1 from A3 -- LT Bank Deposits ... to A1 from A3 -- LT Deposit Note/CD Program ... to A1 from A3 -- Subordinate ... to A2 from Baa1 DPL Capital Trust II -- $300.00M affected -- BACKED Preferred Stock ... to Baa3 from Ba1 DPL Inc. -- $1.18B affected -- Senior Unsecured ... to Baa2 from Baa3 Dayton Power & Light Company -- $552.83M affected -- First Mortgage Bonds ... to A2 from A3 -- LT Issuer Rating ... to A3 from Baa1 -- Preferred Stock ... to Baa2 from Baa3 EMSC Management, Inc. -- $700.00M affected -- LT Corporate Family Ratings ... to Ba3 from B1 -- BACKED Senior Secured Bank Credit Facility ... to Ba1 from Ba2 -- BACKED Senior Subordinate ... to B1 from B3 ORIX-NRL Trust 13 -- JpnY 4.78B affected -- STRUCT. Senior Secured ... to Aaa from Aa1 -- STRUCT. Senior Secured ... to Aa2 from Aa3 -- STRUCT. Senior Secured ... to A3 from Baa1 -- STRUCT. Senior Secured ... to Baa2 from Baa3 Skandia Capital AB -- $67.88M affected -- BACKED Senior Unsecured ... to A3 from Baa1 Skandia Insurance Company Ltd. -- Insurance Financial Strength ... to A2 from A3 Skandia Life Assurance Company -- Insurance Financial Strength ... to A2 from A3 Review for Possible Downgrade Kelda Group plc -- GBP 903.97M may be affected -- LT Issuer Rating ... A3 -- Commercial Paper ... P-2 -- ST Issuer Rating ... P-2 -- BACKED Senior Unsecured ... A2 PREPS 2005-2 plc -- $79.92M may be affected -- STRUCT. Senior Subordinate ... A2 PREPS 2006-1 plc -- $72.52M may be affected -- STRUCT. Senior Subordinate ... A2 Scottish Mutual Assurance Limited -- $410.90M may be affected -- Insurance Financial Strength ... Baa1 -- Junior Subordinate ... Baa3 Tenorite CDO I Ltd. -- $441.00M may be affected -- STRUCT. Senior Secured ... Baa2 -- STRUCT. Senior Subordinate ... A2 -- STRUCT. Senior Subordinate ... Aa2 -- STRUCT. Senior Subordinate ... Aaa -- STRUCT. Senior Subordinate ... Baa2 Yorkshire Water Services Finance Plc -- GBP 1.95B may be affected -- BACKED Senior Unsecured ... A2 Confirmations IXIS Corporate & Investment Bank - Green Bay Credit Derivatives Super Senior Transaction -- $170.00M affected -- STRUCT. Senior Secured ... Aaa Assignments AyT CAIXA GALICIA EMPRESAS I Fondo de Titulizacion de Activos -- EUR 5.00M Series E1 PASS-THRU CTFS due 2045 ... C -- EUR 24.30M Series E2 PASS-THRU CTFS due 2045 ... C -- EUR 27.10M Series C PASS-THRU CTFS due 2045 ... A3 -- EUR 24.50M Series D PASS-THRU CTFS due 2045 ... Ba3 -- EUR 41.60M Series B PASS-THRU CTFS due 2045 ... Aa3 -- EUR 781.70M Series A PASS-THRU CTFS due 2045 ... Aaa Coso Geothermal Power Holdings LLC -- $674.30M PASS-THRU GLOBAL CTFS due 2026 ... Baa3 Espoir Omotesando -- JpnY 3700.00M Class C PASS-THRU CTFS due 2013 ... (P)A2 -- JpnY 3700.00M Class B PASS-THRU CTFS due 2013 ... (P)Aa2 -- JpnY 100.00M Class A-2 PASS-THRU CTFS due 2013 ... (P)Aaa -- JpnY 4100.00M Class D PASS-THRU CTFS due 2013 ... (P)Baa2 -- JpnY 17100.00M Class A-1 PASS-THRU CTFS due 2013 ... (P)Aaa Pepper Residential Securities Trust No.7 -- $A 6.40M Class B Notes PASS-THRU CTFS due 2048 ... (P)A2 -- $A 2.20M Class D Notes PASS-THRU CTFS due 2048 ... (P)Ba2 -- $A 3.60M Class C Notes PASS-THRU CTFS due 2048 ... (P)Baa2 -- $A 16.00M Class A3 Notes PASS-THRU CTFS due 2048 ... (P)Aa1 -- $A 38.40M Class A2 Notes PASS-THRU CTFS due 2048 ... (P)Aaa -- $A 130.00M Class A1 Notes PASS-THRU CTFS due 2048 ... (P)Aaa Principal Life Income Fundings Trusts -- $5000.00M GTD SEC MTN PROGRAM ... Aa2 Relativity Media Holdings I LLC, Series 2007-1 -- $375.00M Cl. A COLL NOTES due 2017 ... Aaa Outlook Actions Cassa dei Risparmi di Forli e della Rom Spa -- To Stable ... from Stable(m) Coso Geothermal Power Holdings LLC -- To Stable ... from Never Assigned DPL Capital Trust II -- To Stable ... from Rating(s) Under Review DPL Inc. -- To Stable ... from Rating(s) Under Review Dayton Power & Light Company -- To Stable ... from Rating(s) Under Review EMSC Management, Inc. -- To Stable ... from Positive Kelda Group plc -- To Rating(s) Under Review ... from Stable Metallinvestbank JSCB -- To Negative(m) ... from Stable Rhodia S.A. -- To Positive ... from Stable Skandia Capital AB -- To Stable ... from Rating(s) Under Review Skandia Insurance Company Ltd. -- To Stable ... from Rating(s) Under Review Skandia Life Assurance Company -- To Stable ... from Rating(s) Under Review Yorkshire Water Services Finance Plc -- To Rating(s) Under Review ... from Stable STA = Stable POS = Positive NEG = Negative DEV = Developing NOO = No Outlook RUR = Rating(s) Under Review (m) = Multiple outlooks with directional differences exist for this issuer. STA(m) = Stable with directional differences at the asset/issue level. NEG(m) = Negative with directional differences at the asset/issue level. POS(m) = Positive with directional differences at the asset/issue level. DEV(m) = Developing with directional differences at the asset/issue level. RWR = Ratings Withdrawn * Beard Group's Featured Conference for November 2007 ----------------------------------------------------- Beard Audio Conferences presents a bankruptcy-related audio conferences for Nov. * The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property To register, visit http://www.beardaudioconferences.com * Drinker Biddle Fortifies with 13 Lawyers from Connelly Sheehan ---------------------------------------------------------------- Drinker Biddle & Reath LLP will enhance its national HR Law practice with the addition of all 13 lawyers from boutique firm Connelly Sheehan Harris LLP, a Chicago-based employment litigation boutique with a national practice, beginning Feb. 1, 2008. "We are very excited to have this outstanding group of labor and employment lawyers join our growing national HR Law practice," Alfred W. Putnam, Jr., Drinker Biddle chairman, said. "With this move, we'll have nearly 75 lawyers across the country focusing on matters such as wage-and-hour class actions, unfair competition, labor law, ERISA cases and discrimination litigation in addition to offering full service in the areas of employee benefits and executive compensation." Michael Sheehan, who co-founded his firm in 1990, said this move comes in response to client needs. "We reached a point at our firm where we needed to expand to serve our larger clients from a firm with national coverage and with skilled veteran lawyers in our field," he said. "At the same time, we wanted a place that would not require us to take the edge off who we are or how we go about working with our clients. We found all that and more at Drinker Biddle." Name partners Sheehan and Martin Harris will join Drinker Biddle as partners, while P. Kevin Connelly will be of counsel to the firm. In addition, Rachel Cowen and Kristine Aubin will join Drinker Biddle as partners, and John A. Berg and Brian E. Spang will be counsel. Six additional Connelly Sheehan Harris lawyers will be joining as associates: Heather A. Bailey, Michael S. Booher, Nathalie Q. Collins, Richard S. Cozza, Esther Vreeman-Moll and Terence P. Smith. Most of the firm's staff members will be offered comparable positions at Drinker Biddle. Drinker Biddle's employment litigation practice added Cheryl D. Orr and Heather M. Sager in January 2007 from San Francisco boutique Carlton DiSante & Freudenberger LLP. The firm disclosed that employment litigator Maria L.H. Lewis will be joining the Philadelphia office on Jan. 1, 2008, as one of a dozen lawyers arriving from Miller Alfano & Raspanti P.C. In addition, the HR Law practice added employee benefits lawyer Dawn E. Sellstrom to Drinker Biddle's Chicago office in October from Seyfarth Shaw LLP. The addition of the lawyers from Connelly Sheehan Harris will come after a year of significant growth for Drinker Biddle in Chicago. The firm combined with the more than 170 lawyers of Gardner Carton & Douglas in January and last month welcomed three partners from Mayer Brown to its securities litigation practice. "We have a strong commitment to increasing our litigation presence in this office," Edwin A. Getz, regional partner in charge of the Chicago office, said. "We intend to keep building upon our strengths locally in the areas of products liability, employment litigation and class actions, and securities and corporate governance." About Drinker Biddle & Reath LLP Based in Philadelphia, Pa., Drinker Biddle & Reath LLP -- http://www.drinkerbiddle.com/-- a national law firm with more than 650 lawyers in 12 offices, concentrates on providing clients with the best possible service in areas such as corporate and securities, commercial litigation, communications litigation, products liability and mass tort litigation, intellectual property, health care, HR law, real estate, corporate restructuring, government and regulatory affairs, environmental, insurance, investment management and private client services. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Nov. 29, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Holiday Gala Yale Club, New York, New York Contact: http://www.iwirc.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Dec. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Fraud and Its Many Colors Omni Hotel, New Haven, Connecticut Contact: http://www.turnaround.org/ Dec. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia Celebrates Christmas Blake Dawson Waldron, Sydney, Australia Contact: 02-9517-4041 or http://www.turnaround.org/ Dec. 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA/ACG Holiday Party Marriott Downtown, Orlando, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Dec. 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Holiday Networking Event with TMA/CFA TBA, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495; 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http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Distressed Debt Panel University Club, Jacksonville, Florida Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION NJTMA Holiday Party Iberia Tavern & Restaurant, Newwark, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Jan. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Annual Lenders Panel Westin Buckhead, Atlanta, Georgia Contact: http://www.turnaround.org/ Jan. 16, 2008 TURNAROUND MANAGEMENT ASSOCIATION Current Outlook: Workouts, Lending and Turnarounds Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Jan. 17-18, 2008 AMERICAN BANKRUPTCY INSTITUTE Caribbean Insolvency Symposium Westin Diplomat, Hollywood, Florida Contact: http://www.abiworld.org/ Jan. 28, 2008 TURNAROUND MANAGEMENT ASSOCIATION Finding Money: Int'l Asset Search and Recovery Methods for Collecting Judgments Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION PowerPlay Philips Arena, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION PowerPlay Philips Arena, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Feb. 14-16, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 22, 2008 AMERICAN BANKRUPTCY INSTITUTE Bankruptcy Battleground West Fairmont Miramar, Santa Monica, California Contact: http://www.abiworld.org/ Feb. 23-26, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Bankruptcy Litigation Seminar I Park City, Utah Contact: http://www.nortoninstitutes.org/ Feb. 26, 2008 TURNAROUND MANAGEMENT ASSOCIATION Retail Panel Citrus Club, Orlando, Florida Contact: www.turnaround.org/ Feb. 27-28, 2008 EUROMONEY INSTITUTIONAL INVESTOR 6th Annual Distressed Investing Forum Union League Club, New York, New York Contact: http://www.euromoneyplc.com/ Mar. 6-8, 2008 ALI-ABA Fundamentals of Bankruptcy Law Mandalay Bay Resort, Las Vegas, Nevada Contact: http://www.ali-aba.org/ Mar. 8-10, 2008 AMERICAN BANKRUPTCY INSTITUTE Conrad Duberstein Moot Court Competition St. John's University School of Law, New York Contact: http://www.abiworld.org/ Mar. 19, 2008 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner Bankers Club of Miami, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Mar. 25, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Maggie Good Centre Club, Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Mar. 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Mar. 27-30, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Bankruptcy Litigation Seminar II Las Vegas, Nevada Contact: http://www.nortoninstitutes.org/ Apr. 3, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Annual Spring Luncheon Renaissance Hotel, Washington, District of Columbia Contact: 703-449-1316 or www.iwirc.org Apr. 3, 2008 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ Apr. 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ Apr. 25-27, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Spring Seminar Eldorado Hotel & Spa, Santa Fe, New Mexico Contact: http://www.nabt.com/ May 1-2, 2008 AMERICAN BANKRUPTCY INSTITUTE Debt Symposium Hilton Garden Inn, Champagne/Urbana, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ May 9, 2008 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton U.S. Custom House, New York Contact: 1-703-739-0800; http://www.abiworld.org/ May 12, 2008 AMERICAN BANKRUPTCY INSTITUTE New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center, New York Contact: 1-703-739-0800; http://www.abiworld.org/ May 13-16, 2008 AMERICAN BANKRUPTCY INSTITUTE Litigation Skills Symposium Tulane University, New Orleans, Louisiana Contact: 1-703-739-0800; http://www.abiworld.org/ May 18-20, 2008 INTERNATIONAL BAR ASSOCIATION 14th Annual Global Insolvency & Restructuring Conference Stockholm, Sweden Contact: http://www.ibanet.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ June 19-21, 2008 ALI-ABA Partnerships, LLCs, and LLPs: Uniform Acts, Taxation, Drafting, Securities, and Bankruptcy Omni Hotel, San Francisco, California Contact: http://www.ali-aba.org/ June 26-29, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Seminar Jackson Hole, Wyoming Contact: http://www.nortoninstitutes.org/ July 10-13, 2008 AMERICAN BANKRUPTCY INSTITUTE 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.abiworld.org/events July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Sept. 4-5, 2008 AMERICAN BANKRUPTCY INSTITUTE Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 24-26, 2008 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 15th Annual Fall Conference Scottsdale, Arizona Contact: http://www.ncbj.org/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Desert Ridge Marriott, Scottsdale, Arizona Contact: http://www.iwirc.org/ Oct. 9, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Luncheon - Chapter 11 University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ June 11-13, 2009 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort and Spa Traverse City, Michigan Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ July 16-19, 2009 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Mt. Washington Inn Bretton Woods, New Hampshire Contact: http://www.abiworld.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com; http://researcharchives.com/t/s?20fa BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES China\u2019s New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency \u2013 Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers\u2014the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today\u2019s Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Battle of Green & Red: Effect of Bankruptcy on Obligations to Clean Up Contaminated Property Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, John Paul C. Canonigo, Joseph Medel C. Martirez, Sheena R. Jusay, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***