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