T R O U B L E D C O M P A N Y R E P O R T E R Thursday, December 6, 2007, Vol. 11, No. 289 Headlines 1031 TAX GROUP: Ch. 11 Trustee Hires R. Davenport as Consultant 1031 TAX GROUP: Ch. 11 Trustee Hires Deloitte as Financial Advisor AFC ENTERPRISES: Board OKs Additional $50 Million Share Repurchase AFC ENTERPRISES: J. Cranor Replaces F. Belatti as Board Chairman AMERICAN HOME: Moody's Cuts Rating on Cl. IV-M-7 Certs. to B2 ARMANI INVESTMENT: Case Summary & 8 Largest Unsecured Creditors ATHLETES WORLD: Forzani Group to Close 37 Stores AVADO BRANDS: Can Employ Graves Seiffer et al. as Special Counsel AVICENA GROUP: Sept. 30 Balance Sheet Upside-Down by $9,146,263 BALLANTYNE RE: Fitch Retains Neg. Watch on BB+ Rated Cl. B-1 Notes BARNHILL'S BUFFET: Selling 21 Restaurants to Star Buffet BARONET USA INC: Chapter 15 Petition Summary BEAR STEARNS: Moody's Downgrades Ratings on 59 Tranches BLAST ENERGY: Plan Confirmation Hearing Moved to January 30 BRIGHTPOINT INC: Appoints Three Executive Officers BROADHOLLOW FUNDING: Moody's Junks Rating on Subordinated Notes BARNHILL'S BUFFET: Case Summary & 20 Largest Unsecured Creditors CA INC: Paying $0.04 Per Share Quarterly Dividend on December 28 CALPINE CORP: Can Abandon Claims of Less than $1 Million CAPITAL POINTE: Case Summary & 1 Largest Unsecured Creditor CARRINGTON LABS: Posts $2.2 Million Net Loss in Third Quarter CBRL GROUP: Paying $0.18/Share Regular Dividend on February 5 CELL THERAPEUTICS: Gets $6.5 Mil. from 7% Preferred Stock Sale CHINA YILI: Posts $15,808 Net Loss in Third Quarter CLAYTON HOLDINGS: May Take $100MM Impairment Charge in 4th Quarter CLEAR CHANNEL: Paying $0.1875/Share Cash Dividend on January 15 CMS ENERGY: Terminated Deal Won't Affect Fitch's "BB+" Rating COLLIN PORTERFIELD: Voluntary Chapter 11 Case Summary COLUMBIA AIRCRAFT: Bridge Associates OK'd as Restructuring Advisor COLUMBIA AIRCRAFT: Taps ING Fin'l. as Investment Banker & Advisor COMMSCOPE INC: Sees Positive 2007 Fourth Quarter Results CORD BLOOD: Sept. 30 Balance Sheet Upside-Down by $4.1 Million CREDIT SUISSE: Fitch Junks Rating on Class B-7 Certificates CSFB HOME: Moody's Lowers Ratings on 36 Certificate Classes DB ISLAMORADA: Case Summary & 16 Largest Unsecured Creditors DELPHI CORP: Gets Committees' Support on Plan Amendments DIMITRIOUS THERIANOS: Case Summary & 17 Largest Unsec. Creditors DOREEN MEEKS: Case Summary & 14 Largest Unsecured Creditors DRESSER-RAND GROUP: Implements Terms of New Union Contract DRESSER-RAND: Employees Back to Work at Painted Post Facility DUNMORE HOMES: Obtains Interim Ok to Hire A&M as Financial Advisor DUNMORE HOMES: 4 More Creditors Seek Case Transfer to California DUNMORE HOMES: Wants to Sell 161 Acres of Sacramento Real Estate DVI RECEIVABLES: Fitch Withdraws Ratings on S. 1999-2 Notes FAIRFAX FINANCIAL: Buys CanWest Global's 1.8 Mil. Voting Shares FAIRVIEW PARK: Case Summary & 20 Largest Unsecured Creditors FAMILY ROOM: Sept. 30 Balance Sheet Upside-Down by $2.9 Million FEDERAL GYPSUM: Minister MacIsaac Wary of Additional Investment FEDERAL-MOGUL: Court Dismisses 75 Chapter 11 Cases FIRST FRANKLIN: Fitch Takes Rating Actions on Various Classes FIRST FRANKLIN: Fitch Cuts Ratings to BB on Four Cert. Classes FIRST FRANKLIN: Moody's Junks Ratings on 10 Cert. Classes FIRST UNION: Stable Performance Cues Fitch to Affirm Ratings FORD MOTOR: November 2007 Truck Sales in Canada Up 3 Percent GABRIEL GUERRERO: Case Summary & 11 Largest Unsecured Creditors GARY BURIVAL: Case Summary & 27 Largest Unsecured Creditors GENERAL MOTORS: Bidding for Undisclosed Stake in OAO AvtoVAZ GLOBAL CASH: Internal Probe Delays Filing of Quarterly Report GLOBAL POWER: Wants Removal Period Extended to Plan Effective Date GLOBAL VISION: Court OKs Appointment of Examiner in Ch. 11 Case GMAC LLC: Financial Unit Names Samuel Ramsey as Chief Risk Officer GOODYEAR TIRE: Board OKs Plan to Keep World Headquarters in Akron GREENBELT CT: U.S. Trustee Unable to Appoint Creditors Committee GREENBELT CT: Wants to Hire Grossberg Company as Accountants GS MORTGAGE: Fitch Junks Ratings on Three Certificate Classes GS MORTGAGE: Fitch Lowers Rating on $2.5MM Certs. to B from BBB GSAA HOME: Moody's Cuts Rating on Cl. I-M-4 Trusts to B2 from Ba3 GSAMP TRUST: Low Credit Enhancement Cues Moody's to Cut Ratings GSAMP TRUST: Moody's Downgrades Ratings on 36 Tranches HALL'S QUALITY: Case Summary & 15 Largest Unsecured Creditors HAWAIIAN AIRLINES: Mesa Air Posts $90 Million Bond HAZEL POINTE: Voluntary Chapter 11 Case Summary HIDDEN SPLENDOR: Committee Hires Edmond Miller as Special Counsel HOLOGIC INC: Mulls Offering of $1.3 Bil. Convertible Senior Notes HOUGHTON MIFFLIN: Inks $750MM Buyout Deal with Cengage Learning HUB INTERNATIONAL: Agrees To Combine with HKMB International IDO SECURITY: Posts $5,114,043 Net Loss in Third Quarter IMPAC MORTGAGE: Gets NYSE Notice on Stock Price Non-Compliance INDYMAC HOME: Moody's Slices Rating on Class M-4 Certs. to B2 INTERSTATE HOTELS: Inks $207.8 Million Venture with Harte Holdings JAMES SAUNDERS: Case Summary & 18 Largest Unsecured Creditors JAYS FOODS: Court OKs $24.8 Mil. BuyOut Pact With Jays Acquisition JOCKEYS' GUILD: Industry Participants Say Assistance is Unlikely KNOLL INC: Paying $0.12/Share Cash Dividend on December 28 L TERSIGNI: U.S. Trustee Wants Case Converted to Chapter 7 LEFT BEHIND: Sept. 30 Balance Sheet Upside-Down by $1,219,428 LODGENET ENTERTAINMENT: Board OKs $15 Million Stock Repurchase MBIA INC: Shrinks Hudson Thames SIV to $400 Million MBS-THE TRAILS: Voluntary Chapter 11 Case Summary MBS MANAGEMENT: Case Summary & 194 Largest Unsecured Creditors MERRILL LYNCH: Fitch Holds 'BB-' Rating on Class B-5 Certs. MERRILL LYNCH: Moody's Lowers Rating on Class B-2 Certs. to B3 MID ATLANTIC RETAIL: Case Summary & 20 Largest Unsecured Creditors MONITOR OIL: Bondholders Want Chapter 11 Case Dismissed MORGAN STANLEY: Moody's Lowers Ratings on Two Cert. Classes to Ba2 MORGAN STANLEY: Moody's Downgrades Ratings on 77 Tranches MULBERRY STREET: Poor Credit Quality Cues Moody's Ratings Review MULBERRY STREET: Moody's Junks Rating on $30MM Class B Notes NASDAQ STOCK: Qatar Holding Withdraws from OMX AB Bidding Race NATIXIS REAL: Moody's Lowers Ratings on Seven Tranches NEW CENTURY: Asks Court to Extend Exclusivity Period to Dec. 28 NEW CENTURY: Asks Court to Maintain 1st Examiner Report Under Seal NEW CENTURY: IRS Opposes Debtors' Motion for Automatic Stay NOMURA HOME: Moody's Cuts Ratings on Two Classes to B1 NOVASTAR FINANCIAL: Wachovia Waiver to Expire Tomorrow NOVASTAR FINANCIAL: NYSE Wants Explanation on Stock Price Jump NOVASTAR MORTGAGE: Moody's Cuts Rating on Cl. M-8 to B1 from Baa2 NUTRITIONAL SOURCING: Exclusive Plan Filing Date Moved to Mar. 3 OKWARA PROPERTIES: Voluntary Chapter 11 Case Summary ORLANDO CITYPLACE: Asset Sale Hearing Scheduled on December 20 OWNIT MORTGAGE: Moody's Junks Ratings on Four Certificate Classes PACIFIC HOTEL: Case Summary & 19 Largest Unsecured Creditors PATMAN DRILLING: Given Interim OK to Employ Pronske as Counsel PATMAN DRILLING: Committee Wants to Hire Cox Smith as Counsel PAUL DUKE: Voluntary Chapter 11 Case Summary QUEBECOR MEDIA: Issues Statement Regarding Spectrum Auction RAVELSTON CORP: Fined $7MM for Fraud; Must Pay $6MM in Restitution RAYMOND MIRELEZ: Case Summary & Five Largest Unsecured Creditors REDDY ICE: Board Appoints William P. Brick as CEO and President RESIDENTIAL ACCREDITED: Fitch Cuts Ratings on 47 Cert. Classes REVLON CONSUMER: Note Repayment Cues Moody's to Hold Ratings RH DONNELLEY: $100MM Stock Repurchase Won't Affect Fitch's IDR ROBERTO REYNA: Case Summary & 17 Largest Unsecured Creditors RURAL TEXAS: Voluntary Chapter 11 Case Summary SACO I: Moody's Downgrades Ratings on 65 Certificate Classes SAINT CATHERINE: Case Summary & 13 Largest Unsecured Creditors SALANDER-O'REILLY: U.S. Trustee Wants Ch. 11 Trustee Appointed SERENA POINT: Snobs Bank's Foreclosure Sale by Filing Chapter 7 SHAW GROUP: Expects $19 Million Net Loss for Fiscal Year 2007 SINOBIOMED INC: Sept. 30 Balance Sheet Upside-Down by $6.2 Million SKATING CLUBS: Case Summary & Nine Largest Unsecured Creditors SOUNDVIEW HOME: Moody's Slices Rating on Cl. M-2 Certs. to Ba1 ST BERNARD: Sept. 30 Balance Sheet Upside-Down by $4.0 Million STEVEN SMITH: Voluntary Chapter 11 Case Summary STILLWATER MINING: Weak Performance Cues Moody's to Cut Rating STRUCTURED ASSET: Moody's Lowers Ratings on 37 Certificates SUMMERDALE PARTNERS: Case Summary & 41 Largest Unsecured Creditors SWEET TRADITIONS: Wants to Employ Ice Miller as Special Co-Counsel TERWIN MORTGAGE: Moody's Puts Seven Cert. Classes Under Review TIAA CMBS: Fitch Affirms Low-B Ratings on Three Cert. Classes TM GROUP: Case Summary & Largest Unsecured Creditor TRANSLAND FIN'L: Two Banks Seek Dismissal of Involuntary Case UNISYS CORP: Fitch Rates Proposed $250MM Debt Offering at BB- UNISYS CORP: Moody's Rates $250MM Sr. Unsecured Notes at B2 WASH BUCKET: Case Summary & 18 Largest Unsecured Creditors WATERFORD EQUITIES: Case Summary & 50 Largest Unsecured Creditors WILLIAM MILLS: Case Summary & 16 Largest Unsecured Creditors WORKFLOW MANAGEMENT: Moody's Places Ratings Under Review * Debtwire and Guiliani See Credit Decline Will Continue to 2008 * Fitch Says 2008 Wireless Industry Will Be Similar to 2007 * Fitch Says Auto Suppliers Will Face The Same Stresses in 2008 * Fitch Says Slow Economic Growth Could Pressure U.S. Auto Sales * Moody's Says 2007 Holiday Retail Season Will Be Competitive * Moody's Publishes a Summary of Ratings on Alt-A RMBS * Moody's Says Sudden Departure of CEO Reveals Weakness in Firm * Moody's Says Report on Filing Under Section 404 Shows Problems * Moody's Monitors the Liquidity of Florida's Universities * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 1031 TAX GROUP: Ch. 11 Trustee Hires R. Davenport as Consultant --------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York has granted Gerard A. McHale Jr., the Chapter 11 Trustee in 1031 Tax Group LLC and its debtor-affiliates' bankruptcy cases, authority to retain Robert Davenport as his financial and real estate consultant, nunc pro tunc to Nov. 12, 2007. Mr. Davenport is expected to: (i) provide advice necessary to assist the Trustee in his efforts to refinance and/or liquidate assets controlled or owned, directly or indirectly, by the Debtors; (ii) assist the Trustee in the day-to-day coordination of the Trustee's professionals relating to the Debtors' real estate assets; (iii) negotiate with potential purchasers and investors in the disposition of such real estate assets; (iv) provide testimony regarding real estate matters as may be requested by the Trustee, and (v) performing such additional necessary services as may be required by the Trustee in his carrying out his statutory duties. Mr. Davenport assures the Court that he does not hold or represent any interest adverse to the Trustee, the Debtors or their creditors with respect to the matters upon which he is to be engaged, and that he is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. Mr. Davenport will charge $150 per hour for his services. Headquartered in Richmond, Virginia, The 1031 Tax Group LLC -- http://www.ixg1031.com/-- is a privately held consolidated group of qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. The company and 15 of its affiliates filed for Chapter 11 protection on May 14, 2007 (Bankr. S.D.N.Y. Case No. 07-11447 through 07-11462). Paul Traub, Esq., Norman N. Kinel, Esq., and Steven E. Fox, Esq., at Dreier LLP, represent the Debtors in their restructuring efforts. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent. Thomas J. Weber, Esq., Melanie L. Cyganowski, Esq., and Allen G. Kadish, Esq., at Greenberg Traurig, LLP, represent the Official Committee of Unsecured Creditors. As of Sept. 30, 2007, the Debtors had total assets of $164,231,012 and total liabilities of $168,126,294, resulting in a total stockholders' deficit of $3,895,282. Gerard A. McHale, Jr., was appointed as the Debtors' Chapter 11 trustee on Oct. 25, 2007. Jonathan L. Flaxer, Esq., at Golenbock Eiseman Assor Bell & Peskoe LLP represents Mr. McHale. 1031 TAX GROUP: Ch. 11 Trustee Hires Deloitte as Financial Advisor ------------------------------------------------------------------ The United States Bankruptcy Court for the Southern District of New York gave Gerard A. McHale Jr., the Chapter 11 Trustee for 1031 Tax Group LLC and its debtor-affiliates, authority to employ Deloitte Financial Advisory Services LLP as his financial advisor, nunc pro tunc to Nov. 2, 2007. The firm will: a) assist the Trustee in the development of real estate appraisals, real estate financing and marketing materials; b) assist the Trustee with the identification, recovery and realization of the Debtors' assets; c) assist the Trustee in the negotiation and development of distribution plans and plans of reorganization and liquidation; d) review the Debtor's liquidity and assist the Trustee in the assessment of cash funding requirements; e) assist the Trustee in connection with the inventory and security of the Debtor's records and assets; f) assist the Trustee in connection with the tracing of fund flows and asset movement; g) assist the Trustee in the development of periodic reports and other communications to creditors, the Bankruptcy Court and other interested parties; h) assist the Trustee in the reconciliation of claims and resolution of related disputes; i) attend and participate in meetings in an advisory capacity relating to matters within the scope of the firm's services; j) assist the Trustee in analyzing various causes of action; and k) provide testimony with respect to any related matters. The firm's professionals will be paid at these hourly rates: Partner, Principal, Director $660 Senior Manager $480 Manager $400 Senior Consultants $300 Staff $265 John P. Sordillo, a partner at the firm, assured the Court that his firm is a "disinterested person" as that term is defined in Sec. 101(14) of the Bankruptcy Code. Headquartered in Richmond, Virginia, The 1031 Tax Group LLC -- http://www.ixg1031.com/-- is a privately held consolidated group of qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. The company and 15 of its affiliates filed for Chapter 11 protection on May 14, 2007 (Bankr. S.D.N.Y. Case No. 07-11447 through 07-11462). Paul Traub, Esq., Norman N. Kinel, Esq., and Steven E. Fox, Esq., at Dreier LLP, represent the Debtors in their restructuring efforts. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent. Thomas J. Weber, Esq., Melanie L. Cyganowski, Esq., and Allen G. Kadish, Esq., at Greenberg Traurig, LLP, represent the Official Committee of Unsecured Creditors. As of Sept. 30, 2007, the Debtors had total assets of $164,231,012 and total liabilities of $168,126,294, resulting in a total stockholders' deficit of $3,895,282. Gerard A. McHale, Jr., was appointed as the Debtors' Chapter 11 trustee on Oct. 25, 2007. Jonathan L. Flaxer, Esq., at Golenbock Eiseman Assor Bell & Peskoe LLP represents Mr. McHale. AFC ENTERPRISES: Board OKs Additional $50 Million Share Repurchase ------------------------------------------------------------------ AFC Enterprises Inc.'s Board of Directors has approved an increase in the company's share repurchase program by an additional $50 million, effective immediately. The program, which is open-ended, allows the company to repurchase its shares on the open market from time to time in accordance with the requirements of the Securities and Exchange Commission. During fiscal year 2007 through Nov. 2, 2007, the company has repurchased more than 2.1 million shares of common stock for approximately $35.2 million. This expanded multi-year program is subject to the limitations of the company's outstanding credit facility. Under those limitations, the company has the ability to repurchase approximately $17.3 million of additional shares during the remainder of fiscal year 2007. As of Nov. 2, 2007, approximately 27.7 million shares of the company's common stock were outstanding. About AFC Enterprises Inc. Headquartered in Atlanta, Georgia, AFC Enterprises Inc. -- http://www.afce.com/-- owns, operates and franchises Popeyes Chicken & Biscuits quick service restaurants. As of July 15, 2007, AFC owned and operated 61 restaurants and franchised 1,817 restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 23 foreign countries. The Popeyes concept features a New Orleans Cajun-style menu, with regional items such as spicy fried chicken pieces, chicken sandwiches and strips, fried shrimp, jambalaya and red beans & rice. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Moody's Investors Service changed AFC Enterprises Inc.'s rating outlook to stable from positive. Concurrently, Moody's affirmed all the debt ratings of AFC, including its B1 corporate family rating and probability of default rating at B2, while upgrading the senior secured credit facilities rating to Ba3 from B1. AFC ENTERPRISES: J. Cranor Replaces F. Belatti as Board Chairman ---------------------------------------------------------------- Frank J. Belatti has retired as AFC Enterprises Inc.'s chairman of the board of directors. The company has appointed John M. Cranor as new chairman. Mr. Belatti founded AFC Enterprises in 1992 and served as the CEO of AFC from 1992-2005. Mr. Belatti was instrumental in the growth of AFC's portfolio of brands, its initial public offering in March 2001, and the subsequent strategic divestitures of the company's Church's Chicken, Cinnabon and Seattle Coffee Company brands, leading to its current stand alone ownership of Popeyes Chicken & Biscuits. Mr. Belatti will assume a full time role as managing partner, Equicorp Partners LLC, an Atlanta based investment firm. Mr. Belatti also serves as an adjunct professor at the Mendoza College of Business at the University of Notre Dame where he teaches Microventuring, as part of the Gigot Center Social Entrepreneurship Initiative. John M. Cranor, a member of the AFC board since November of 2006, has been appointed to succeed Mr. Belatti as chairman of the AFC board of directors. Mr. Cranor served as chairman, president and chief executive officer of Long John Silver's Restaurants Inc., a position he held from 1996- 1999. Prior to that, Mr. Cranor was president and chief executive officer of KFC Corporation from 1989-1994. Mr. Cranor has more than 30-years of management experience in the food service and retail industries including senior executive positions with Pepsi- Cola North America, Taco Bell Corporation, Wilson Sporting Goods, and Frito-Lay Company. Since 2003, Mr. Cranor has also served as the president and chief executive officer of the New College Foundation, affiliated with New College of Florida in Sarasota. Mr. Cranor holds a Bachelor's of Arts degree from New College of Florida and a Master's of Business Administration from Harvard University. "After 15 years building a successful enterprise, I will miss AFC, especially all the wonderful and talented people throughout the organization," Mr. Frank Belatti stated. "I am proud to have John as our new Chairman. John is a highly regarded leader with substantial experience in the food industry. His expertise in our quick service sector will be of great benefit to the Popeyes brand. We have great confidence in his ability to work with our new CEO, Cheryl Bachelder, to lead the company to future growth." About AFC Enterprises Inc. Headquartered in Atlanta, Georgia, AFC Enterprises Inc. -- http://www.afce.com/-- owns, operates and franchises Popeyes Chicken & Biscuits quick service restaurants. As of July 15, 2007, AFC owned and operated 61 restaurants and franchised 1,817 restaurants in 44 states, the District of Columbia, Puerto Rico, Guam and 23 foreign countries. The Popeyes concept features a New Orleans Cajun-style menu, with regional items such as spicy fried chicken pieces, chicken sandwiches and strips, fried shrimp, jambalaya and red beans & rice. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Moody's Investors Service changed AFC Enterprises Inc.'s rating outlook to stable from positive. Concurrently, Moody's affirmed all the debt ratings of AFC, including its B1 corporate family rating and probability of default rating at B2, while upgrading the senior secured credit facilities rating to Ba3 from B1. AMERICAN HOME: Moody's Cuts Rating on Cl. IV-M-7 Certs. to B2 ------------------------------------------------------------- Moody's Investors Service has downgraded three certificates from a transaction issued by American Home Mortgage Investment Trust. The transaction is backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread, subordination, and overcollateralization, were too low compared to the current projected loss numbers at the previous rating levels. Complete rating actions are: Issuer: American Home Mortgage Investment Tr 2006-3 -- Cl. IV-M-7, Downgraded to B2 from Ba2 -- Cl. IV-M-8, Downgraded to Ca from Ba3 -- Cl. IV-M-9, Downgraded to C from B3 ARMANI INVESTMENT: Case Summary & 8 Largest Unsecured Creditors --------------------------------------------------------------- Lead Debtor: Armani Investment Inc. 6990 E. 22nd Street, Suite 110-168 Tucson, AZ 85710 Bankruptcy Case No.: 07-02453 Chapter 11 Petition Date: December 3, 2007 Court: District of Arizona (Tucson) Judge: James M. Marlar Debtor's Counsel: Eric Slocum Sparks, Esq. Eric Slocum Sparks PC 110 S. Church Ave #2270 Tucson, AZ 85701 Tel: 520-623-8330 Fax: 520-623-9157 http://www.ericslocumsparkspc.com/ Estimated Assets: $1 million to $100 million Estimated Debts: $1 million to $100 million Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ GMAC Mortgage real property; value $940,000 P.O. BOX 4622 of security: $8000,000 Waterloo, IA 50704 EMC Mortgage Ccorp. real property; value $631,000 P.O. BOX 293150 of security: $800,000; Lewisville, TX 75029 value of senior lien: $504,000 Casa Loma, LLC real property; value of $135,000 of senior lien: $631,000 Wells Fargo Real Property; value of $117,197 P O BOX 2908 of security: $800,000; Phoenix, AZ 85062 value of senior lien: $940,000 Bank of America credit card $33,414 Desert Valley Builders trade debt $12,500 Planning Center trade debt $8,000 J. Crockett, Assoc. trade debt unknown LLC ATHLETES WORLD: Forzani Group to Close 37 Stores ------------------------------------------------ The Forzani Group Ltd. disclosed that it plans to close 37 of Athletes World's 138 stores, Lauren Krugel of The Canadian Press reports. Citing Forzani CEO Bill Gregson, Canadian Press relates that the stores to be closed are those that have been continuing to incur losses. The 37 stores to be shut down are mainly located at areas where Forzani operates its own banners. As previously reported in the Troubled Company Reporter, Athletes World filed for protection from its creditors under the Companies' Creditors Arrangement Act with the Ontario Superior Court of Justice on Oct. 30, 2007. Forzani, on Nov. 30, 2007, completed its acquisition of Athletes World. Canadian Press reports, citing Forzani CEO Bob Sartor, that Forzani will pay $1.5 million for Athletes' shares and assume $20 million in secured debt. Mr. Sartor however declared that the acquisition of Athletes World was more of "defensive" rather than "offensive," Canadian Press adds. About The Forzani Group The Forzani Group Ltd. (TSX: FGL) -- http://www.forzanigroup.com/ is Canada's largest national retailer of sporting goods, offering a comprehensive assortment of brand-name and private-brand products, operating stores from coast to coast, under corporate banners: Sport Chek, Coast Mountain Sports, Sport Mart, National Sports and Hockey Experts. The company also retails on-line at -- http://www.sportmart.ca-- and provides a content rich sporting goods information site at -- http://www.sportchek.ca-- The Forzani Group is also a franchisor under the banners: Sports Experts, Intersport, Econosports, Atmosphere, Tech Shop, Pegasus, The Fitness Source and Nevada Bob's Golf. About Athletes World Headquartered in Ontario, Athletes World Ltd. is a shoe retailer with over 100 stores in Canada. It is the only remaining Canadian retailer unit of Bata Ltd., -- http://www.bata.com/-- a privately owned global shoe manufacturer and retailer. Bata is led by a third generation of the Bata family. With operations in 68 countries, Bata is organized into four business units. Bata Canada, based in Toronto, serves the Canadian market with 250 stores. Based in Paris, Bata Europe serves the European market with 500 stores. With supervision located in Singapore, Bata International has 3,000 stores to serve markets in Africa, the Pacific, and Asia, Finally, Bata Latin America, operating out of Mexico City, sells footwear throughout Latin America. Bata owns more than 4,700 retail stores and 46 production facilities. Total employment for the company exceeds 50,000. AVADO BRANDS: Can Employ Graves Seiffer et al. as Special Counsel ----------------------------------------------------------------- Avado Brands Inc. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the District of Delaware to employ four law firms as their special counsel, nunc pro tunc to Sept. 5, 2007. The law firms and their principal attorneys include: 1) Graves Seiffert, P.A. -- Jennings L. Graves, Jr., Esq.; 2) The Gilreath Law Firm, P.A. -- James R. Gilreath, Esq.; 3) McCutchen, Blanton, Johnson & Barnette, LLP -- T. English McCutchen, Esq. -- L. Susan Foxworth, Esq.; and 4) the Law Office of Myles E. Eastwood, Esq. These law firms are expected to: a) provide legal advice with respect to the Debtors' class action suit against KPMG, LLP, concerning a dispute over implementation of tax strategies; b) preaper necessary motions, applications, complaints, answers, declarations, order, counterclaims, affidavits, reports, and other legal papers relating to the KPMG Litigation and other related matters; c) correspond and negotiate with the parties to the KPMG Litigation; d) appear, to the extent required, in couirt or before the applicable administrative or governing entity to protect the Debtors' interest relating to the KPMG Litigation; and e) perform all other legal services for the Debtors that may be necessary and appropriate. Each of the law firms agreed to receive a contingency fee from the Debtors upon a successful resolution of the KPMG Litigation. To the best of the Debtors' knowledge, none of the four firms represent or hold any interest adverse to the Debtors or their estates, or have any connection with the Debtors, creditors, or other parties-in-interest. About Avado Brands Madison, Georgia-based Avado Brands Inc., aka Applesouth, -- http://www.avado.com/-- operates about 120 casual dining restaurants under the banners Don Pablo's Mexican Kitchen and Hops Grillhouse & Brewery. The restaurants are located in 22 states in the U.S. As of Sept. 5, 2007, the Debtors employed about 9,970 people. For the year ended July 31, 2007, the Debtors generated about $227.8 million in revenues and a negative EBITDA of $7.8 million. The Debtor filed for chapter 11 protection on Feb. 4, 2004 (Bankr. N.D. Tex. Case No. 04-1555). On April 26, 2005, Judge Steven Felsenthal confirmed Avado's Modified Plan of Reorganization and that Plan became effective on May 19, 2005. On Sept. 5, 2007, Avado filed a voluntary chapter 22 petition (Bankr. D. Del. Case No. 07-11276) to complete an orderly sale of its assets, via Section 363 of the Bankruptcy Code. About 10 of Avado's affiliates also filed for bankruptcy protection on the same date (Bankr. D. Del. Case Nos. 07-11277 through 07-11286). Michael Tuchin, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Debtors. Donald J. Detweiler, Esq., at Greenberg Traurig, LLP, is the Debtors' local counsel. Kurtzman Carson Consultants LLC acts as the Debtors claims and noticing agent. In their second filing, the Debtors disclosed estimated assets and debts between $1 million to $100 million. Scott L Hazan, Esq., at Otterbourg, Steindler, Houston & Rosen, P.C.; and David B. Stratton, Esq., at Pepper Hamilton LLP, represent the Official Committee of Unsecured Creditors. AVICENA GROUP: Sept. 30 Balance Sheet Upside-Down by $9,146,263 --------------------------------------------------------------- Avicena Group Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $2,633,623 in total assets, $5,395,597 in total liabilities, and $6,384,289 in convertible preferred stock, resulting in a $9,146,263 total stockholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet showed $2,616,436 in total current assets available to pay $2,927,016 in total current liabilities. The company reported a net loss of $205,692 on revenue of $88,608 for the third quarter ended Sept. 30, 2007, compared with a net loss of $2,054,565 on revenue of $132,190 in the corresponding period in 2006. Results for the third quarter ended Sept. 30, 2007, includes non- cash gains of $4,140,798 to mark-to-market the warrant liabilities associated with its April 2006 convertible promissory note, warrants to GP Group for investment banking services and warrants issued in connection with the sale of its Series A, B and C preferred stock. The 33% revenue decrease versus the 2006 period was primarily due to the unusually strong demand by Estee Lauder in the 2006 period. This trend was not repeated in the three months ended Sept. 30, 2007. Total general and administrative expenses increased to $1,355,570 in the three month period ending Sept. 30, 2007, from $514,472 in the comparable 2006 period. Interest expense increased to $2,119,631 during the three month period ended Sept. 30, 2007, versus $609,927 in the corresponding 2006 period. 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?260c Going Concern Doubt Vitale, Caturano & Company Ltd., in Boston, expressed substantial doubt about Avicena Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's significant operating losses and accumulated deficit. About Avicena Group Headquartered in Palo Alto, Calif., Avicena Group Inc. (OTC BB: AVGO.OB) -- http://www.avicenagroup.com/ -- is a late-stage biotechnology company that develops central nervous system therapeutics for neurodegenerative diseases. The company's core technologies have broad applications in both pharmaceuticals and dermaceuticals. Avicena's pharmaceutical program centers on rare neurological disorders. Unlike traditional biotechnology companies, Avicena's clinical programs are largely funded by government and non-profit organizations. Avicena presently derives revenue from the sale of proprietary dermaceutical ingredients to skin care manufacturers. BALLANTYNE RE: Fitch Retains Neg. Watch on BB+ Rated Cl. B-1 Notes ------------------------------------------------------------------ Ballantyne Re Plc remains on Rating Watch Negative by Fitch Ratings following the announcement that Ballantyne Re reduced to zero the outstanding principal on $25.4 million of class C-1 subordinated variable interest rate notes and $170 million of its class C-2 subordinated variable interest rate notes plus all accrued and outstanding interest. The class C-1 and C-2 note holders are deemed to have forfeited all rights thereto. The write downs are permitted by the terms of the indenture which allow Ballantyne to write down a sufficient amount of class C notes to restore Irish statutory surplus to $7 million. These ratings remain on Rating Watch-Negative by Fitch: -- $250,000,000 class A-1 floating-rate notes, 'A+'; -- $10,000,000 class B-1 subordinated notes, 'BB+'; -- $40,000,000 class B-2 subordinated floating-rate notes, 'BB+'. The 'AAA' ratings of Ballantyne Re's class A-2 and A-3 floating- rate guaranteed notes are not affected because those ratings are linked to the financial strength of the relevant financial guarantors. Certain reserve funds that support the Ballantyne Re transaction have material exposure to subprime residential asset- and mortgage-backed securities that have experienced significant market value declines over the past few months. Subprime residential ABS/MBS are in the midst of a significant market dislocation due to liquidity constraints and deteriorating credit fundamentals. As a result, the subprime residential ABS/MBS securities market has experienced ratings downgrades and mark-to- market losses. The decline in market values has continued since Aug. 14, 2007 when Fitch originally placed the notes on Rating Watch Negative. Further, interest payments to the Ballantyne Re class B-1 and class B-2 notes was suspended, in accordance with the terms of the indenture, on Sept. 4, 2007. Following the write downs, $24.6 million of class C-1 and no class C-2 notes remain outstanding. Thus, the amount of subordinated debt supporting the A and B classes has declined considerably. Fitch is in the process of re-running its model of the Ballantyne Re cash flows under various scenarios. These scenarios will consider the potential for continued declines in subprime market values, the possibility of a recovery in subprime market values and the likelihood that subprime market values may only partially recover. Fitch expects to complete this analysis within the week at which time the ratings will likely be downgraded. The downgrades, particularly for the class B-1 and B-2 notes, could potentially be more than one notch. Ballantyne Re is a special purpose public limited company incorporated and registered in Ireland. The company was established for the limited purpose of entering into a reinsurance agreement with Scottish Re, and conducting activities related to the notes' issuance. Under the reinsurance agreement, Scottish Re ceded a block of business to Ballantyne Re. Ballantyne Re issued the notes to finance excess reserve requirements under Regulation XXX for the ceded block of business. BARNHILL'S BUFFET: Selling 21 Restaurants to Star Buffet -------------------------------------------------------- Star Buffet Inc. had reached agreement, subject to certain conditions including bankruptcy court and selected creditor approvals, to purchase the operating assets of 21 Barnhill's Buffet Inc. restaurants located in the states of Alabama, Arkansas, Florida, Louisiana, Mississippi and Tennessee. Star Buffet, Inc. plans to acquire the restaurants in conjunction with Barnhill's plans to restructure operations. Barnhill's Buffet filed a petition for voluntary Chapter 11 reorganization with the U.S. Bankruptcy Court of the Middle District of Tennessee on Dec. 3, 2007. A closing date for this transaction has not been determined. "Barnhill's is a great company with a great buffet brand ... that has recently struggled due to its capital structure, not because of operational issues," Robert E. Wheaton, Star Buffet's president stated. "We believe that Star Buffet, Inc. has the financial resources to help rectify Barnhill's liquidity problems and that the addition of 21 Barnhill's restaurants will compliment our existing presence in the southeastern marketplace." Headquartered in Madison, Tennessee, Barnhill's Buffet Inc. -- http://www.barnhills.com/-- operates a chain of restaurants. BARONET USA INC: Chapter 15 Petition Summary -------------------------------------------- Petitioner: Ernst & Young, Inc. Ernst & Young Tower, T-D Centre, P.O. Box 251 Toronto, Ontario M5K 1J7 Debtor: Baronet U.S.A., Inc. 234, rue Baronet Ste-Marie de Beauce Province de Quebec Case No.: 07-13821 Debtor-affiliate filing a separate Chapter 15 petition: Entity Case No. ------ -------- Baronet, Inc. 07-13822 Type of Business: The Debtors are furniture manufacturers in Canada. They sell their products mainly in Canada and the U.S. See http://www.baronet.ca/en/homepage.php On November 8, 2007, the Quebec Superior Court in Canada entered an order pursuant to the Companies' Creditors Arrangement Act, R.S.C. 1985, commencing a proceeding for the purpose of adjustment of debts and reorganization of the financial affairs of the debtors. Among other things, the order appointed Ernst & Young, Inc. as Monitor and as representative of the debtors, and also authorized them, with the prior consent of the debtors, to commence a chapter 15 case and seek relief in the U.S. consistent with the relief granted by the same order. Chapter 15 Petition Date: December 4, 2007 Court: Southern District of New York (Manhattan) Judge: James M. Peck Petitioner's Counsel: Jeffrey S. Margolin, Esq. Hughes, Hubbard & Reed, L.L.P. 1 Battery Park Plaza New York, NY 10004 Tel: (212) 837-6375 Fax: (212) 422-4726 Estimated Assets Estimated Debts ---------------- --------------- Baronet U.S.A., Inc. $1 Million to $1 Million to $100 Million $100 Million Baronet, Inc. $1 Million to $1 Million to 100 Million $100 Million BEAR STEARNS: Moody's Downgrades Ratings on 59 Tranches ------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 59 tranches and has placed under review for possible downgrade the ratings of 16 tranches from 5 transactions issued under the Bear Stearns Asset Backed Securities I Trust shelf. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, subprime mortgage loans. In its analysis, Moody's has evaluated the delinquency pipeline and applied its published methodology updates as of July 13, 2007 the non-delinquent portion or the transactions. Collateral backing these transactions is also experiencing higher than anticipated rates of delinquency, foreclosure, and REO relative to credit enhancement levels. Complete list of Rating Actions: Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AQ1 -- Cl. M-1 Currently Aa1 on review for possible downgrade, -- Cl. M-2 Currently Aa2 on review for possible downgrade, -- Cl. M-3 Currently Aa3 on review for possible downgrade, -- Cl. M-4, Downgraded to Baa2, previously A1, -- Cl. M-5, Downgraded to Ba2, previously A2, -- Cl. M-6, Downgraded to B1, previously A3, -- Cl. M-7, Downgraded to Ca, previously Baa1, -- Cl. M-8, Downgraded to C, previously Baa2, -- Cl. M-9, Downgraded to C, previously Baa3, -- Cl. M-10, Downgraded to C, previously Ba1. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-AQ2 -- Cl. M-1 Currently Aa1 on review for possible downgrade, -- Cl. M-2 Currently Aa2 on review for possible downgrade, -- Cl. M-3 Currently Aa3 on review for possible downgrade, -- Cl. M-4, Downgraded to Baa1, previously A1, -- Cl. M-5, Downgraded to Ba1, previously A2, -- Cl. M-6, Downgraded to B1, previously A3, -- Cl. M-7, Downgraded to Caa2, previously Baa1, -- Cl. M-8, Downgraded to Ca, previously Baa2, -- Cl. M-9, Downgraded to C, previously Baa3. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-FS1 -- Cl. M-2 Currently Aa2 on review for possible downgrade, -- Cl. M-3 Currently Aa3 on review for possible downgrade, -- Cl. M-4, Downgraded to Baa1, previously A1, -- Cl. M-5, Downgraded to Baa3, previously A2, -- Cl. M-6, Downgraded to Ba3, previously A3, -- Cl. M-7, Downgraded to B3, previously Baa1, -- Cl. M-8, Downgraded to C, previously Baa2, -- Cl. M-9, Downgraded to C, previously Baa3, -- Cl. M-10, Downgraded to C, previously Ba1. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE1 -- Cl. I-M-2 Currently Aa2 on review for possible downgrade, -- Cl. I-M-3 Currently Aa3 on review for possible downgrade, -- Cl. I-M-4, Downgraded to Baa1, previously A1, -- Cl. I-M-5, Downgraded to Baa3, previously A2, -- Cl. I-M-6, Downgraded to Ba3, previously A3, -- Cl. I-M-7, Downgraded to B3, previously Baa1, -- Cl. I-M-8, Downgraded to Caa2, previously Baa2, -- Cl. I-M-9, Downgraded to C, previously Baa3, -- Cl. I-M-10, Downgraded to C, previously Ba1, -- Cl. II-M-2 Currently Aa2 on review for possible downgrade, -- Cl. II-M-3 Currently Aa3 on review for possible downgrade, -- Cl. II-M-4, Downgraded to A2, previously A1, -- Cl. II-M-5, Downgraded to Baa2, previously A2, -- Cl. II-M-6, Downgraded to Ba1, previously A2, -- Cl. II-M-7, Downgraded to Ba3, previously A3, -- Cl. II-M-8, Downgraded to B2, previously Baa1, -- Cl. II-M-9, Downgraded to Caa1, previously Baa2, -- Cl. II-M-10, Downgraded to C, previously Baa3. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE2 -- Cl. I-M-1 Currently Aa1 on review for possible downgrade, -- Cl. I-M-2 Currently Aa2 on review for possible downgrade, -- Cl. I-M-3 Currently Aa3 on review for possible downgrade, -- Cl. I-M-4, Downgraded to A3, previously A1, -- Cl. I-M-5, Downgraded to Baa3, previously A2, -- Cl. I-M-6, Downgraded to Ba2, previously A3, -- Cl. I-M-7, Downgraded to B1, previously Baa1, -- Cl. I-M-8, Downgraded to B3, previously Baa2, -- Cl. I-M-9, Downgraded to C, previously Baa3, -- Cl. I-M-10, Downgraded to C, previously Ba1, -- Cl. II-M-3 Currently Aa3 on review for possible downgrade, -- Cl. II-M-4, Downgraded to A2, previously A1, -- Cl. II-M-5, Downgraded to Baa2, previously A2, -- Cl. II-M-6, Downgraded to Ba1, previously A3, -- Cl. II-M-7, Downgraded to B1, previously Baa1, -- Cl. II-M-8, Downgraded to B2, previously Baa2, -- Cl. II-M-9, Downgraded to B3, previously Baa3, -- Cl. II-M-10, Downgraded to C, previously Ba1. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE3 -- Cl. M-5, Downgraded to A3, previously A2, -- Cl. M-6, Downgraded to Baa1, previously A3, -- Cl. M-7, Downgraded to Baa3, previously A3, -- Cl. M-8, Downgraded to Ba2, previously Baa1, -- Cl. M-9, Downgraded to Ba3, previously Baa2. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE4 -- Cl. M-7, Downgraded to Baa1, previously A3, -- Cl. M-8, Downgraded to Ba1, previously Baa1, -- Cl. M-9, Downgraded to Ba2, previously Baa2. Issuer: Bear Stearns Asset Backed Securities I Trust 2007-HE5 -- Cl. M-7, Downgraded to Baa2, previously A3, -- Cl. M-8, Downgraded to Baa3, previously Baa1, -- Cl. M-9, Downgraded to Ba1, previously Baa2. BLAST ENERGY: Plan Confirmation Hearing Moved to January 30 ----------------------------------------------------------- The Hon. Jeff Bohm of the U.S. Bankruptcy Court for the Southern District of Texas deferred the hearing to consider confirmation of Blast Energy Services Inc. and Eagle Domestic Drilling Operations LLC's Joint Amended Chapter 11 Plan of Reorganization to Jan. 30, 2008, at 9:00 a.m. The plan confirmation hearing was previously scheduled on Nov. 28, 2007. As reported in the Troubled Company Reporter on Oct. 22, 2007, Judge Bohm approved the Amended Disclosure Statement explaining the Debtors' Amended Plan citing that it contained "adequate information" as required by Section 1125 of the Bankruptcy Code. Treatment of Claims Under the Plan, Administrative Claims will be paid in full and in cash on the effective date. Each holder of Priority Tax Claims, if any, will be paid in equal annual installments of principal and interest. Class 1 Allowed Priority Claims, totaling approximately $40,000, are expected to recover 100% of their allowed claim amounts either in cash or through a lesser treatment agreed to in writing. Laurus Master Fund Ltd.'s secured claim will be fully satisfied by a) transfer of rigs pursuant to a settlement agreement and a related sale order and b) payment of $2,100,000 pursuant to a settlement agreement and a related sale order. Berg McAfee Companies LLC's $1,120,000 estimated secured claim will be fully satisfied by issuance to Berg McAfee of a new three year note in the amount of $1,120,000 with an annual interest rate of 8%, with interest payable at the end of the term in Reorganized Blast Common Stock, and with a principal conversion right exercisable at Berg McAfee's election. Other secured claims, will, at the Debtors' option, either: a) be paid in cash in full; b) receive, without representation or warranty, the collateral securing its claim; or c) receive a note, secured by a lien securing its allowed secured claim. Holders of Convenience Claims against both Debtors will receive, in full and final satisfaction of their claim, cash on the distribution date equal to 75% of the allowed claim amounts. Unsecured Claims against both Debtors are entitled to cash payments equal to: (a) 35% of the allowed claim amount; and (b) 65% of the allowed unsecured claim in the form of a junior secured note. Second Bridge LLC's 900,000 shares of Blast common stock will, on the effective date, be purchased by Reorganized Blast for $900. Each holder of Allowed Unsecured Directors' Claim will be converted to Blast common stock at the rate of $ 0.20 per share. This class of claims in the Plan was created at the request of the Official Committee of Unsecured Creditors and informally has been consented to by each member of the Debtors' Board of Directors. All interests in the Debtors will be retained by the holders in the current form. A full-text copy of the Disclosure Statement is available for a fee at: http://www.researcharchives.com/bin/download?id=071017232413 About Blast Energy Services Headquartered in Houston, Blast Energy Services and its debtor- affiliate Eagle Domestic Drilling Operations LLC -- http://www.blastenergyservices.com/-- owns and contracts land drilling rigs to third parties. The Debtor also provides services relating to drilling rig operations. Blast Energy owns and develops abrasive jetting intellectual property, technology and equipment providing downhole production enhancement and drilling solutions, and satellite broadband access for Internet, data, email, applications, VoIP and video streaming as energy industry management tools providing real-time supervisory control and data acquisition. The company filed for Chapter 11 protection on Jan. 19, 2007 (Bankr. S.D. Tex. Case No. 07-30424 and 07-30426). H. Rey Stroube, III, Esq., represent the Debtors. The Official Committee of Unsecured Creditors is represented by Alan D. Halperin, Esq., at Halperin Battaglia Raicht LLP. When the Debtor filed for protection from its creditors, it listed total assets of $63,500,851 and total debts of $51,019,486. BRIGHTPOINT INC: Appoints Three Executive Officers -------------------------------------------------- Brightpoint Inc., in connection with its ongoing integration following its transaction with Dangaard Telecom, disclosed that the duties and responsibilities of certain executives are modified effective immediately: -- Jac Currie has been appointed as the company's Chief Information Officer and will lead the company's global IT team. -- R. Bruce Thomlinson will continue in his role of President, Asia Pacific but will have his scope expanded to include the Middle East, Africa and India. -- David O'Connell has been appointed as Chief Financial Officer for Brightpoint Europe. Prior to his appointment as CIO, Mr. Currie had been President of Emerging Markets since January 2006. From August 2002 to December 2005, Mr. Currie was the chairman and chief executive officer of Persequor Limited, a holding company for investments in wireless telecommunications that the Company subsequently acquired and which is now one of the Company's wholly owned subsidiaries. From January 1998 to August 2002, Mr. Currie served as the managing director of Brightpoint Middle East FZE, then one of the Company's wholly owned subsidiaries. Mr. Currie also serves on the board of directors of several of the Company's subsidiaries. Mr. Currie is a wireless industry veteran, having been involved in the industry since 1988. Prior to joining Brightpoint, he was employed by Deutsche Telecom in the Philippines. He also worked with Millicom International Cellular from 1988 to 1995, in various senior marketing and management roles throughout Europe, Asia and Latin America. Mr. Thomlinson has served the Company in various capacities, most recently as President, Asia-Pacific. Prior to the integration with Dangaard, Mr. Thomlinson served as President, International Operations from August 2005. Previously, he served as President of the Company's Asia-Pacific division from October 1998 and as Managing Director of Brightpoint Australia since October 1996, when Brightpoint acquired Hatadicorp Pty Ltd. Prior to that time, Mr. Thomlinson held the position of Managing Director for Hatadicorp. He has been engaged in the wireless communications industry since 1989. Prior to his appointment as CFO for Brightpoint Europe, Mr. O'Connell served as Vice President Integration and Communication since November 2006. Prior to that, Mr. O'Connell served as Vice President of Taxation, Global Credit and Risk Management for Brightpoint since April of 2003. From August of 1997 to April of 2003 he was the company's Director of Taxation. Prior to joining the Company, Mr. O'Connell was Tax Manager for Allison Engine Company (now Rolls-Royce) in Indianapolis, Indiana. Prior thereto, he held various tax positions with Ernst & Young. About Brightpoint Headquartered in Plainfield, Indiana, Brightpoint, Inc. -- http://www.brightpoint.com/-- distributes wireless devices and accessories, as well as provision of customized logistic services to the wireless industry. The company primarily operates in Australia, Colombia, Finland, Germany, India, New Zealand, Norway, the Philippines, the Slovak Republic, Sweden, United Arab Emirates and the United States. The company's customers include mobile operators, mobile virtual network operators, resellers, retailers and wireless equipment manufacturers. Brightpoint was incorporated in 1989 under the name Wholesale Cellular USA, Inc. and changed its name to Brightpoint Inc. in 1995. * * * Standard & Poor's placed Brightpoint's long-term local and foreign issuer credit ratings at BB- with a stable outlook in April 2006. Ratings still hold to date. BROADHOLLOW FUNDING: Moody's Junks Rating on Subordinated Notes --------------------------------------------------------------- Moody's has downgraded the variable rate subordinated notes issued by Broadhollow Funding LLC to Ca from B2. To date, 54.23% of the principal amount of the $138 million Subordinated Notes has been paid. The rating action is based primarily on the continued uncertainty that the Subordinated Notes will be paid in full by the legal final maturity date from the proceeds of the sale of mortgages and receipt of payments from the swap providers. The collateral in the Broadhollow portfolio consisted of Agency conforming, jumbo and Alt-A mortgage loans. Broadhollow has not received the full amount it believes is due under the market value swap. According to public documents filed with the US Bankruptcy Court for the District of Delaware on Oct. 22, 2007, Broadhollow has filed suit against one of the swap providers, Bank of America, N.A., in this matter. At the same time, Moody's is withdrawing the Prime-1 rating assigned to the commercial paper issued by Broadhollow. Broadhollow issued secured liquidity notes, a form of extendible asset-backed commercial paper. These notes were paid in full on Oct. 9, 2007 and are no longer outstanding. Broadhollow was sponsored by American Home Mortgage Investment Corp. On August 6, 2007, the program sponsor, American Home Mortgage Investment Corp., filed for bankruptcy under Chapter 11. BARNHILL'S BUFFET: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Lead Debtor: Barnhill's Buffet, Inc. aka Barnhill's Buffet of Tennessee, Inc. 1210 Briarville Road, Building F Madison, TN 37115 Bankruptcy Case No.: 07-bk-08948 Type of Business: The Debtor operates a chain of restaurants. See http://www.barnhills.com/ Chapter 11 Petition Date: December 3, 2007 Court: Middle District of Tennessee (Nashville) Judge: George C. Paine II Debtor's Counsel: William Caldwell Hancock, Esq. 102 Woodmont Boulevard, Suite 200 Nashville, TN 37205 Tel: (615) 345-0202 Fax: (615) 296-0947 Estimated Assets: $10 Million to $50 Million Estimated Debts: $10 Million to $50 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Akerman Senterfitt trade $61,622 p.o. box 4906 orlando, FL 32802 Alabama Power Co. trade $12,103 P.O. Box 242 Birmingham, AL 35292 Mobile Fixture & Equipment trade $12,477 1155 Montlimar Drive Mobile, AL 36609 Wintons Restaurant Facility trade $10,133 Maintenance Ecolab trade $7,775 Quality Inn & Suites trade $6,616 Wear Guard trade $5,562 Canterbury Suites trade $3,718 Nuco2, Inc. trade $3,436 Superior Commercial Service trade $3,321 Fedex trade $2,252 Smith's Carpet & Furniture trade $2,188 Florida Air Specialist trade $2,187 Quality Inn Pascagoula trade $1,978 Mike's Commercial Kitchen trade $1,975 Repair Hurst Carpet & Upholstery trade $1,953 Cleaning Service King Professional Carpet trade $1,486 Cleaning Service C.E. Chandler A.C. & Heating, trade $1,276 Inc. Johnson Diversey, Inc. trade $1,113 Ken Dye trade $1,000 CA INC: Paying $0.04 Per Share Quarterly Dividend on December 28 ---------------------------------------------------------------- CA Inc.'s Board of Directors has declared a regular, quarterly cash dividend of $0.04 per share. The dividend will be paid on Dec. 28, 2007 to stockholders of record at the close of business on Dec. 14, 2007. Headquartered in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. * * * Standard & Poor's Rating Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on CA Inc. in June 2007. At the same time, S&P revised the outlook to stable from negative. CALPINE CORP: Can Abandon Claims of Less than $1 Million -------------------------------------------------------- The Hon. Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York authorized Calpine Corp. and its debtor-affiliates to abandon any and all claims or causes of action to avoid transfers under Section 547 of the Bankruptcy Code where the transfers to a particular entity aggregate less than $1,000,000. The Court also directed the Court Clerk to accept filings, under seal, of the complaint in each Preference Action the Debtors may file. The dockets for any Preference Action will be under seal and the identity of the defendant will not be disclosed. The Debtors will have until June 30, 2008, to serve each defendant with a summons and complaint. David R. Seligman, Esq., at Kirkland & Ellis, LLP, in New York, told the Court, on the Debtors' behalf, that their deadline to commence avoidance actions under Section 547 is on Dec. 20, 2007. According to Mr. Seligman, the Debtors may have more than 5,700 potential preference actions. In late 2006, the Debtors conducted an analysis of their payments on account of antecedent debts during the preference periods and their payment history within the 15 months before filing for bankruptcy. The Debtors also analyzed more than 35,000 payments made to more than 5,700 vendors within the applicable preference period. These payments total more than $5,100,000,000, he said. Of those payments, Mr. Seligman noted, more than 20,000 payments to approximately 4,700 vendors would provide no realistic recovery value to the Debtors, regardless of the ultimate recovery of unsecured creditors, based on a variety of factors unique to each payee. The payments, totaling approximately $3,100,000,000, include: -- payments to parties that entered into postpetition settlements that waived avoidance claims; -- payments to contract counter-parties whose contracts were assumed; -- employee benefit payments; -- payments made to government entities otherwise entitled to priority treatment; -- intercompany transfers; and -- transfers to investment accounts. Based on the Preference Analysis and focusing specifically on the remaining $2,000,000,000 potential preference actions, the Debtors believe that they have a number of preference claims that, if litigated to conclusion, would result in significant money judgment claims in their favor. However, Mr. Seligman stated, the value of the money judgments will be significantly, if not completely, negated by the corresponding Section 502(h) unsecured claims that will arise against the Debtors' estates after satisfaction of the money judgments. Specifically, the Debtors believe that filing and serving of complaints asserting preference claims for aggregate payments of less than $1,000,000 will cost them hundreds of thousands of dollars in unnecessary legal fees and expenses without a realistic chance of any material recovery on behalf of their estates. Since a determination that all unsecured creditors will be paid in full negates any justification for filing preference actions, the Debtors have sought tolling agreements with almost all possible preference defendants, Mr. Seligman said, adding that many of those still remain unsigned. As a result, Mr. Seligman averred, the Debtors likely will be forced to file certain preference actions to preserve their rights on the December 20 deadline. To avoid wasting time, money, and judicial resources, however, the Debtors also asked the Court to approve the procedures with respect to any preference action they will commence until distributions to unsecured creditors can be understood with greater clarity: The Debtors proposed that: (a) the Clerk of the Court defer issuing summons unless and until they inform the Clerk of their intent to pursue the preference actions; (b) the time period under Rule 7004 of the Federal Rules of Bankruptcy Procedures be extended until June 30, 2008, to prevent dismissal of the complaint due to the deferred issuance of summons; (c) any adversary proceeding they file be temporarily stayed, without prejudice to their right to amend the complaint during the stay; (d) the stay will be automatically lifted upon the service of the summons and the filed complaint; and (e) the preference complaints be filed under seal. Mr. Seligman contended that sealing of the records in the Preference Actions will protect the Debtors and the potential defendants from the disclosure of confidential and potentially damaging commercial information, including information related to valuation. About Calpine Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. The hearing to consider confirmation of that Plan begins Dec. 17, 2007. (Calpine Bankruptcy News, Issue No. 72; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CAPITAL POINTE: Case Summary & 1 Largest Unsecured Creditor ----------------------------------------------------------- Debtor: Capital Pointe, LLC 800 Langford Drive, Suite D Norcross, GA 30071 Bankruptcy Case No.: 07-80526 Chapter 11 Petition Date: December 4, 2007 Court: Northern District of Georgia (Atlanta) Judge: C. Ray Mullins Debtor's Counsel: Bruce Z. Walker, Esq. Cohen Pollock Merlin & Small Suite 1600 3350 Riverwood Parkway Atlanta, GA 30339-6401 Tel: (770) 858-1288 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million Debtor's list of its Largest Unsecured Creditor: Entity Claim Amount ------ ------------ Karl Lenker $285,000 280 Willow Glen Point Alpharetta, GA 30022 CARRINGTON LABS: Posts $2.2 Million Net Loss in Third Quarter ------------------------------------------------------------- Carrington Laboratories Inc. reported a net loss of $2.2 million on total revenues of $6.5 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.8 million on total revenues of $6.7 million for the same period in 2006. Interest expense, net of interest income, during the quarter ended Sept. 30, 2007, increased $666,000 to $932,000 as compared to $266,000 for the quarter ended Sept. 30, 2006. At Sept. 30, 2007, the company's consolidated financial statements showed $17.3 million in total assets, $16.5 million in total liabilities, and $840,000 in total shareholders' equity. 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?2610 Liquidity The company's net cash requirements for the period Oct. 1, 2007, through June 30, 2008, are projected to be approximately $3.4 million. During this period it is anticipated that $2.6 million will be needed to fund net DelSite expenses for research and development work on its proprietary drug delivery systems. In addition, it is anticipated that $1.5 million will be needed to fund operating losses in the company's medical services and consumer services divisions, $500,000 will be needed for ongoing investment in capital equipment and $3.0 million for debt service. These cash requirements will be partially offset by the $3.3 million existing cash balance at Sept. 30, 2007. Based on current estimates, the company believes that it will need to raise approximately $8.0 million in additional capital to meet its operating and research and development needs through the end of 2008. Going Concern Doubt Weaver and Tidwell L.L.P., in Dallas, expressed substantial doubt about Carrington Laboratories Inc.'s ability to continue as a going concern after completing its audit of the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that the company has incurred significant losses from operations and requires additional financing to fund future operations. About Carrington Laboratories Headquartered in Irving, Texas, Carrington Laboratories Inc. (OTC: CARN) -- http://www.carringtonlabs.com/-- is an ISO 9001- certified, research-based, biopharmaceutical and consumer products company currently utilizing naturally-occurring complex carbohydrates to manufacture and market products for mucositis, radiation dermatitis, wound and oral care, as well as to manufacture and market the nutraceutical raw material Manapol(R) and cosmetic raw material Hydrapol(TM). Carrington also manufactures and markets consumer products and manufactures quality products for other companies. Carrington's DelSite Biotechnologies subsidiary is developing its proprietary GelSite(R) technology designed to provide controlled release of peptide and protein-based drugs. CBRL GROUP: Paying $0.18/Share Regular Dividend on February 5 ------------------------------------------------------------- CBRL Group Inc.'s board has declared a regular dividend to common shareholders of $0.18 per share, payable on Feb. 5, 2008, to shareholders of record on Jan. 18, 2008. Headquartered in Lebanon, Tennessee, CBRL Group Inc. (NASDAQ: CBRL) -- http://www.cbrlgroup.com/-- operates 564 Cracker Barrel Old Country Store(R) restaurants and gift shops located in 41 states. * * * CBRL Group Inc. continues to carry Moody's Investors Service's 'Ba2' corporate family rating, which was placed in April 2006. The rating outlook is negative. CELL THERAPEUTICS: Gets $6.5 Mil. from 7% Preferred Stock Sale -------------------------------------------------------------- Cell Therapeutics Inc. has received approximately $6.5 million from the sale of its 7% Convertible Preferred Stock and warrants in a registered offering to several institutional investors, including existing securities holders. CTI sold 6,500 shares of Series D convertible preferred stock, together with warrants, to investors at the negotiated price of $1,000 per share of Series D convertible preferred stock. The Preferred Stock is convertible into 2,488,037 shares of common stock, at a conversion price of $2.6125 per share. The company also issued warrants to purchase up to 1,244,016 shares of common stock, with an exercise price of $2.55 per share. The company intends to use the proceeds of the offering towards the closing of its purchase of ZEVALIN(R) from Biogen Idec Inc. and for general corporate purposes. Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group Inc., acted as the exclusive placement agent for the offering. Copies of the prospectus supplement and accompanying base prospectus may be obtained directly from Cell Therapeutics Inc., 501 Elliott Avenue West, Suite 400, Seattle, Washington 98119. About Cell Therapeutics Based in Seattle, Cell Therapeutics Inc. (NasdaqGM: CTIC) -- http://cticseattle.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Cell Therapeutics Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $84.9 million in total assets, $180.8 million in total liabilities, and 149,000 in minority interest in subsidiary, resulting in a $119.3 million total shareholders' deficit. CHINA YILI: Posts $15,808 Net Loss in Third Quarter --------------------------------------------------- China Yili Petroleum Company reported a net loss of $15,808 on sales of $508,612 for the third quarter ended Sept. 30, 2007, compared with a net loss of $57,075 on $-0- of sales in the same period a year ago. All of the revenue and most of the expenses reported by the company for the three months ended Sept. 30, 2007, were generated by ASAP Holdings. These do not, however, reflect all of the revenue and expenses of ASAP Holdings for that three month period. Because the merger of Yili Asphalt into the company on Aug. 13, 2007, is accounted for as a reverse merger, the historic financial statements of Yili Asphalt have replaced the historic financial statements of the company prior to the reverse merger. Only the results of operations of ASAP Holdings occurring after Aug. 13, 2007, are consolidated in the financial results for the quarter ended Sept. 30, 2007. The $508,612 in revenue reported by ASAP Holdings for the period from Aug. 13, 2007, to Sept. 30, 2007, arose primarily from its business of selling exhibit space at trade shows. At Sept. 30, 2007, the company's consolidated balance sheet showed $8,357,619 in total assets, $2,928,302 in total liabilities, and $5,429,317 in total stockholders' equity. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $256,187 in total current assets available to pay $2,928,302 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?260e Going Concern Doubt Sutton Robinson Freeman & Co. P. C., in Tulsa, Okla., expressed substantial doubt about ASAP Show Inc. nka. China Yili Petroleum Company's ability to continue as a going concern after completing its audit of the company's consolidated financial statements for the year ended May 31, 2007. The auditing firm reported that the company has suffered recurring losses from operations and has a net capital deficiency. At Sept. 30, 2007, the company's current liabilities exceeded its current assets by $2.7 million. In addition, Yili Asphalt has not generated any revenues. About China Yili Headquartered in New York, China Yili Petroleum Company (OTC BB: CYIP) was incorporated in December 2004 under the laws of the State of Nevada. Until Aug. 13, 2007, the company was engaged exclusively in operating the business of organizing trade-shows and innovative means of financing international trade. On Aug. 13, 2007, the company acquired all of the registered capital of Yili Asphalt Co., a corporation organized under the laws of The People's Republic of China. Yili Asphalt is engaged in the business of refining heavy oil into asphalt, fuel oil and lubricants. CLAYTON HOLDINGS: May Take $100MM Impairment Charge in 4th Quarter ------------------------------------------------------------------ Clayton Holdings Inc. expects to take a pre-tax, non-cash, impairment charge of between $75 million and $100 million in the fourth quarter of 2007, reflecting the reduced carrying value of goodwill, intangible assets and other long-lived assets of its transaction management business. The goodwill and intangible assets were recorded in 2004 when TA Associates acquired the majority interest in Clayton's due diligence business. "As we have reported for several quarters, the steep decline in new nonconforming securities issuance has significantly reduced our transaction management revenues," Frank Filipps, Clayton's chairman and chief executive officer, said. "While we are well positioned to benefit from any recovery in this market, internal and industry projections anticipate continued lower levels of MBS/ABS issuance throughout much of 2008 and possibly into 2009." "In our last 10-Q and investor call, we noted that our board of directors would retain an independent expert to review the value of the goodwill and intangible assets that we carry on our balance sheet," Mr. Filipps added. "While these impairment tests have not been completed, the company's board of directors has determined that generally accepted accounting principles will require us to record a non-cash impairment charge during the fourth quarter of 2007. This charge does not affect our cash position, our cash flow from operations or our debt covenants." After the charge, the carrying value of Clayton's goodwill and other intangible assets will total approximately $38 million to $63 million. About Clayton Holdings Inc. Headquartered in Shelton, Connecticut, Clayton Holdings Inc., -- http://www.clayton.com/-- is an information and analytics company serving capital markets firms, lending institutions, fixed income investors and loan servicers with a full suite of information-based analytics, specialty consulting and outsourced services. Clayton's services include due diligence analytics, conduit support services, professional staffing, compliance products and services, credit risk management and surveillance and specialized loan servicing services. * * * As reported in the Troubled Company Reporter on Oct. 31, 2007, Standard & Poor's Ratings Services revised its outlook on Clayton Holdings Inc. to stable from positive, after the company's deterioration in operating trends and credit metrics. The corporate credit rating is affirmed at 'B+'. CLEAR CHANNEL: Paying $0.1875/Share Cash Dividend on January 15 --------------------------------------------------------------- Clear Channel Communications Inc.'s board of directors declared a quarterly cash dividend of $0.1875 per share on its common stock. The dividend is payable on or before Jan. 15, 2008, to shareholders of record at the close of business on Dec. 31, 2007. Based in San Antonio, Texas, Clear Channel Communications Inc. (NYSE:CCU) -- http://www.clearchannel.com/-- is a media and entertainment company specializing in "gone from home" entertainment and information services for local communities and premiere opportunities for advertisers. The company's businesses include radio, television and outdoor displays. Outside U.S., the company operates in 11 countries -- Norway, Denmark, the United Kingdom, Singapore, China, the Czech Republic, Switzerland, the Netherlands, Australia, Mexico and New Zealand. * * * As reported in the Troubled Company Reporter on Sept. 27, 2007, Fitch Ratings said it expects to downgrade Clear Channel Communications Inc.'s Issuer Default Rating to 'B' from 'BB-'. The rating outlook is expected to be stable. Existing ratings remain on rating watch negative pending the closing of the merger transaction and review of final documentation. CMS ENERGY: Terminated Deal Won't Affect Fitch's "BB+" Rating ------------------------------------------------------------- CMS Energy Corp.'s recent announcement that indirect subsidiary, Dearborn Industrial Generation LLC has reached agreements to terminate unprofitable electricity sales agreements with Ford Motor Company and Severstal North America Inc. will not have any effect on the ratings or Rating Outlook of CMS, according to Fitch Ratings. Under the terms of the termination agreements, CMS will make a one-time cash payment of $275 million to Ford and SNA. The termination agreement is conditioned upon the ability of Ford and SNA to return to electric service with the Detroit Edison Company. Fitch currently rates CMS' Issuer Default Rating 'BB+' with a Stable Outlook. CMS has sufficient liquidity to withstand the $275 million payout through its credit facilities. There was approximately $296 million available under credit facilities as of Sept. 30, 2007. The termination of these agreements is considered favorable and is a factor in Fitch's current ratings analysis. DIG entered into the agreements (260 MW) with Ford and SNA in 1999 to provide steam and (or) electricity based on a fixed price schedule. The price of natural gas, the primary fuel used by DIG, is volatile and has increased substantially in recent years. Because the prices charged under DIG's contracts do not reflect current natural gas prices, DIG's financial performance has been impacted negatively. The long-term contracts have been a drag on CMS earnings for several years due to higher gas prices. However, since not all of its 710 mw of capacity is committed under these contracts, DIG has been selling portions of its electric capacity and (or) energy into the market at a profit; and engaging in hedging strategies to minimize its losses. With the termination of the Ford and SNA agreements, it is expected that DIG will post positive cash flows beginning in 2008. CMS is a utility holding company whose primary subsidiary is Consumers Energy, a regulated electric and gas utility serving more than 3.5 million customers in Western Michigan. CMS also has operations in natural gas pipelines and independent power production. DIG is a 710 MW gas combined and simple cycle facility in Michigan. COLLIN PORTERFIELD: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Collin Dwayne Porterfield 3336 Hanover Street University Park, TX 75225 Tel: (214) 369-3380 Bankruptcy Case No.: 07-36056 Type of Business: The Debtor is a lawyer. Chapter 11 Petition Date: December 4, 2007 Court: Northern District of Texas (Dallas) Debtor's Counsel: Collin D. Porterfield, Esq. Collin, Dallas & Denton Companies 3336 Hanover Street University Park, TX 75225 Tel: (214) 837-6532 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. COLUMBIA AIRCRAFT: Bridge Associates OK'd as Restructuring Advisor ------------------------------------------------------------------ Columbia Aircraft Manufacturing Corporation obtained permission from the U.S. Bankruptcy Court for the District of Oregon to employ Bridge Associates LLC as its restructuring advisor, pursuant to a pre-bankruptcy employment agreement between the parties. Bridge Associates is expected to: a) evaluate the Debtor's financial management systems for accuracy and the ability to allow management to effectively plan for Debtor's cash needs, including evaluation of data collection and preparation of cash flow projections; b) evaluate and implement financial controls; c) assist senior management with the development and execution of negotiating strategies with lenders, trade vendors, strategic suppliers, equity holders, investors, and other parties in interest that hold or assert claims or interests in Debtor; d) work with the Debtor's existing financial staff, officers and consultants to ensure the proper performance of the day-to-day functions customarily and reasonably associated with companies of similar size and complexity to Debtor; e) work with the Debtor's management to determine and implement appropriate staffing levels throughout Debtor's operations; f) assist the Board of Directors in reviewing and evaluating options for effective deployment of the Debtor's assets being developed as part of the Debtor's strategic view of its business and restructuring plan; g) assist the Debtor and support ING Financial Markets LLC investment bankers with respect to the sale of certain of the Debtor's assets and supporting and pursuing negotiations with potential investors; h) assist the Debtor in locating and negotiating with potential sources of debtor-in-possession financing; i) assist the Debtor in Chapter 11 bankruptcy proceedings including providing strategic advice and assistance with and supervision of preparation of the schedules and other documents needed to comply with applicable requirements of the U.S. Bankruptcy Code; and j) assist in such other matters as may be agreed upon by and between the parties. Carl H. Young, III, a managing director of Bridge Associates, tells the Court that the firm's professionals bill: Designation Hourly Rate ----------- ----------- Carl H. Young, III $500 Michael Culliver $500 Richard Reighard $400 Managing Directors, Directors, $350 - $550 Principals and Senior Consultants Senior Associates or Consultants $250 - $375 Associates or Consultants $200 - $300 Paraprofessionals $90 - $150 Mr. Young assures the Court that the firm is "disinterested," as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About Columbia Aircraft Based in Bend, Oregon, Columbia Aircraft Manufacturing Corporation -- http://www.flycolumbia.com/-- manufactures a variety of all- composite aircraft, including the Columbia 400 and employs approximately 440 people. The company filed for Chapter 11 protection on Sept. 24, 2007 (Bankr. D. Ore. Case No. 07-33850). Leon Simson, Esq., Albert N. Kennedy, Esq., and Timothy J. Conway, Esq., at Tonkon Torp LLP represent the Debtor in its restructuring efforts. James Ray Streinz, Esq., and Johnston A. Mitchell, Esq., at McEwen Gisvold LLP serve as counsel to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of $1 million to $100 million. The Debtor's list of its 20 largest unsecured creditors showed total aggregate claims of more than $50 million. COLUMBIA AIRCRAFT: Taps ING Fin'l. as Investment Banker & Advisor ----------------------------------------------------------------- Columbia Aircraft Manufacturing Corporation asks permission from the U.S. Bankruptcy Court for the District of Oregon to employ ING Financial Markets LLC as its financial advisor and investment banker, nunc pro tunc to Sept. 24, 2007. The Debtor initially retained ING Financial on November 2006. The services ING Financial has been performing for the Debtor and for which ING will continue to perform include: a) advising the Debtor with respect to the structure and financial terms of a possible sale or other transaction and the negotiating strategy to be used in connection with the sale(s); b) assisting the Debtor in preparing informaiton, documents, and confidential offering memoranda for distribution to potential buyers in connection with the sale process; c) coordinating and assisting in the preparation of the appropriate due diligence process and participating in meetings with potential acquirers as needed; d) identifying in any discussions and negotiations with prospective suitors and serving as primary intermediary between the Debtor and potential bidders for purposes of negotiating confidentiality agreements required of all potential bidders requesting information and access for due diligence purposes; and e) identifying and introducing investors, companies and person who might be interested in a transaction involving the Debtor. For compensation, ING Financial will be entitled to a success fee equal to the greater of: -- 1.5% of the aggregate consideration, as defined in the Debtor's engagement agreement with the firm, payable in connection with a sale, merger, consolidation, reorganization, or other business combination involving all or a substantial portion of the business assets of the Debtor; or -- an amount of $1,150,000. A non-refundable retainer of $50,000 previously paid to ING will be credited against any success fee which ING may be entitled to receive. Prior to the Debtor's bankruptcy filing, ING was paid approximately $206,259 in accordance with the engagement agreement. The Debtor says that the firm does not have any connection with the Debtor, its creditors, or any other party-in-interest, other than that established by the engagement agreement. Committee Objects The Official Unsecured Creditors Committee in Columbia Aircraft's Chapter 11 case objected to certain aspects of ING's employment as financial advisor. The Creditors Committee asked the Court not to allow its discretion over the compensation of ING to be limited by the pre- bankruptcy engagement agreement. The Committee related that the Court has already rejected the attempted end-run around the requirements for hiring professionals by assuming a prepetition contract in its decision with respect to hiring Bridge Associates. Although the parties agreed to hire Bridge, the Court recognized that Bridge needed to be hired as a professional under Section 327 of the U.S. Bankruptcy Code. The Committee contends that the Court should allow employment of ING as a professional on terms accepted by the Court, rather than required by the engagement agreement. The Committee explained that other bankruptcy courts have rejected attempts by professionals, especially investment bankers, to dictate the terms of their representation through a prepetition contract. The Committee pointed out that these courts facing this issue recognized that the debtor and the investment banker are not in an equal bargaining position, which would lead to a debtor agreeing to a "bad bargain". The Committee also objected to ING seeking to have its fee set at $1,150,000. The guaranty of a set fee is unwarranted, precisely because the Court should give discretion to set compensation based on whether ING has been successful, the Creditors Panel contended. About Columbia Aircraft Based in Bend, Oregon, Columbia Aircraft Manufacturing Corporation -- http://www.flycolumbia.com/-- manufactures a variety of all- composite aircraft, including the Columbia 400 and employs approximately 440 people. The company filed for Chapter 11 protection on Sept. 24, 2007 (Bankr. D. Ore. Case No. 07-33850). Leon Simson, Esq., Albert N. Kennedy, Esq., and Timothy J. Conway, Esq., at Tonkon Torp LLP represent the Debtor in its restructuring efforts. James Ray Streinz, Esq., and Johnston A. Mitchell, Esq., at McEwen Gisvold LLP serve as counsel to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and liabilities of $1 million to $100 million. The Debtor's list of its 20 largest unsecured creditors showed total aggregate claims of more than $50 million. COMMSCOPE INC: Sees Positive 2007 Fourth Quarter Results -------------------------------------------------------- CommScope Inc. raised its fourth quarter 2007 financial guidance. CommScope chairman and chief executive officer, Frank Drendel, will review the company's growth opportunities, the increased fourth quarter 2007 financial guidance and the pending Andrew Corporation acquisition when he meets with investors at Lehman Brothers' 2007 Global Technology Conference at the Fairmont Hotel in San Francisco, California on Dec. 5, 2007. Due to positive trends in sales, orders and operations, CommScope management expects fourth quarter revenue to be in the $435 - $445 million range, and operating income to increase by 30% to 45% year over year, based on the expected operating margin of 11.5% to 12.5%, excluding special items. The company's previous fourth quarter 2007 guidance was sales of $420 - $440 million and operating margin of 11% to 12%, excluding special items. Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is into infrastructure solutions for communication networks. CommScope's structured cabling systems for business enterprise applications includes SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands. It is also the manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. * * * As reported in the Troubled Company Reporter on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings on CommScope Inc. and Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn after its acquisition and debt refinancing. The outlook is stable. CORD BLOOD: Sept. 30 Balance Sheet Upside-Down by $4.1 Million -------------------------------------------------------------- Cord Blood America Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $5.9 million in total assets and $10.0 million in total liabilities, resulting in a $4.1 million total stockholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $903,102 in total current assets available to pay $10.0 million in total current liabilities. The company reported a net loss of $1.1 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.3 million in the comparable period last year. For the three months ended Sept. 30, 2007, total revenue increased $511,000 or 44.7% to $1.7 million due primarily to the company's acquisition of more umbilical cord samples along with customer lists and marketing efforts. Administrative and selling expenses increased to $1.1 million, or an increase of $230,000 from the three month comparative period in 2006. Interest costs increased $473,000 over the prior year's comparative period, an increase of 87%. For the nine months ended Sept. 30, 2007, total revenue increased $3.1 million or 121% to $5.7 million. Net loss from continuing operations did not significantly change from the comparative period, declining 1.8% to $4.2 million. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?2608 Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 9, 2007, Rose, Snyder & Jacobs, in Encino, Calif., expressed substantial doubt about Cord Blood America Inc.'s ability to continue as a going concern after auditing the company's balance sheet for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, continuing use of cash in operating activities, insufficient working capital and accumulated deficit at Dec. 31, 2006. About Cord America Headquartered in West Hollywood, California, Cord Blood America Inc. (OTC BB: CBAI) -- http://www.cordblood-america.com/-- is the parent company of CorCell, which facilitates umbilical cord blood stem cell preservation for expectant parents and their children. Collected through a safe and non-invasive process, cord blood stem cells offer a powerful and potentially life-saving resource for treating a growing number of ailments, including cancer, leukemia, blood, and immune disorders. CREDIT SUISSE: Fitch Junks Rating on Class B-7 Certificates ----------------------------------------------------------- Fitch Ratings affirms 4, downgrades 11, and places 1 class on Rating Watch Negative from the following Credit Suisse Mortgage Securities Corp. mortgage-backed pass-through certificates, series 2006