T R O U B L E D C O M P A N Y R E P O R T E R Monday, January 7, 2008, Vol. 12, No. 5 Headlines 1633 BROADWAY: Case Summary & 20 Largest Unsecured Creditors 94/BELLEVILLE RESTAURANT: Voluntary Chapter 11 Case Summary A.R.E.I. NEWHALL: Voluntary Chapter 11 Case Summary AFFILIATED COMPUTER: S&P Maintains 'BB' Corporate Credit Rating AIR DEVELOPMENT: Case Summary & Eight Largest Unsecured Creditors ALLIED SECURITY: Sept. 30 Balance Sheet Upside-Down by $18 Million ALTERNATIVE A: S&P Expects Further Decline of Issuances in 2008 ANTARES FUNDING: Fitch Puts Low-B Ratings Under Negative Watch ARVINMERITOR INC: S&P Holds BB Rating on $700MM Credit Facility ASSET BACKED: Fitch Junks Rating on $6.7MM Class M10 Debentures AUDIOVOX CORP: Completes $19.7MM Buyout of Thomson's Consumer AVNET INC: Acquires Semiconductor Distributor YEL Electronics AXCESS INT'L: Sept. 30 Balance Sheet Upside-Down by $3.1 Million BAPTIST FOUNDATION: Auction of Remaining Assets Set for Jan. 17 BERRY PLASTICS: Inks $500 Mil. Merger Deal With Captive Holdings BERRY PLASTICS: S&P Retains CCC+ Rating on Senior Unsecured Debt BERTHEL GROWTH I: Sept. 30 Balance Sheet Upside-Down by $5.3 Mil. BLUEGRASS ABS: Poor Credit Quality Cues Moody's Ratings Review BORIS PAVLOV: Case Summary & 12 Largest Unsecured Creditors BUFFETS INC: Has Until Jan. 31 to Pay Interest on $640MM Sr. Notes BUSK ENTERTAINMENT: Case Summary & 20 Largest Unsecured Creditors C&S SOLOMONS: Case Summary & 16 Largest Unsecured Creditors CARBIZ INC: Increases Credit Facility to $111.98 Million CHECK ELECT: Section 341(a) Meeting Scheduled for February 12 CHESAPEAKE ENERGY: Fitch Attaches 'BB' Issuer Default Rating CLEAR CHANNEL: TV Unit President and CEO Donald D. Perry Resigns CONSOLIDATED COMMS: Releases NPSI Shareholders Final Votes DC PROPERTIES: Non-Filing of Reports Prompts Court to Dismiss Case DELPHI CORP: Seeks Provisional Allowance of Unreconciled Claims DELPHI CORP: UAW Objects to Management Compensation Plan COMBIMATRIX CORP: Posts $3.4 Million Net Loss in Third Quarter DELTA PETROLEUM: Tracinda Deal Cues S&P's Positive CreditWatch DOV PHARMA: Posts $3.8 Million Net Loss in Third Quarter DUNMORE HOMES: Gets Final OK to Hire A&M CF as Financial Advisor DUNMORE HOMES: Obtains Final Court Nod to Employ A&M as Consultant DURA AUTOMOTIVE: Court Defers DIP Financing Maturity to January 31 DURA AUTOMOTIVE: Restructuring of Canadian Subsidiaries Approved ENCORE ACQUISITION: Unit Agrees to Buy EAC Assets for $250 Mil. ENVISION LAGRANGE: Voluntary Chapter 11 Case Summary EPICEPT CORP: Sept. 30 Balance Sheet Upside-Down by $9.4 Million FEDERAL-MOGUL: S&P Puts BB- Rating on $2.96 Billion Senior Loan GAP INC: Names Simon Kneen as Creative Dir. for Banana Republic GIBRALTAR GRANITE: Voluntary Chapter 11 Case Summary GREEN AGGREGATES: Case Summary & 19 Largest Unsecured Creditors HARVEY ELECTRONICS: Gets Interim OK to Borrow $1.5 Mil. DIP Fund HYACINTH DANIEL: Case Summary & 16 Largest Unsecured Creditors IMAX CORP: Turns Over Feinstein Theatre to National Amusements INSIGHT COMMS: S&P Withdraws 'CCC+' Rating on $350 Mil. Notes INSIGHT MIDWEST: S&P Withdraws 'B' Rating on $200 Mil. Notes JEFFREY SHOTKOSKI: Case Summary & 11 Largest Unsecured Creditors JOHN STEWART: Case Summary & 19 Largest Unsecured Creditors KELLWOOD COMPANY: Posts $1.1 Million Net Loss in Third Quarter KELLWOOD CO: Sun Capital's Renewed Offer Expected To Be Higher KELLWOOD CO: Inks $80 Million Accelerated Share Repurchase Pact KELLWOOD CO: Share Repurchase Cues S&P to Retain Negative Watch KIMBALL HILL: Delays Annual Report Filing Over Weak Housing Market KIMBALL HILL: Impairment Charges Cue a Likely Covenant Violation KIMBALL HILL: S&P Junks Corporate credit Rating KIWA BIO-TECH: Sept. 30 Balance Sheet Upside-Down by $1.73 Million LAS VEGAS SANDS: Gets SGD$5.44 Bil. Financing for Marina Bay Sands LEVITT AND SONS: Cascades Committee Wants Estate Assets Insured LEVITT AND SONS: Wants to Employ Watson Realty as Listing Agent LEVITT AND SONS: Wants to Use AmTrust Loan to Build Hartwood Homes MACKLOWE PROPERTIES: A $6.4BB Debt Waiting To Be Paid Next Month MARINER ENERGY: High Debt Leverage Cues S&P's Negative Outlook MARK IV: Completes Acquisition Deal with Sun Capital's Unit MCKINLEY FUNDING: Moody's Junks Rating on $38 Mil. Notes from Aa2 MEDISTEM LABS: Posts $380,417 Net Loss in Third Quarter MERITAGE MORTGAGE: Fitch Junks Ratings on Three Certificates MOVIE GALLERY: Wants Removal of Action Period Moved to July 14 N-STAR REAL: Fitch Holds BB Rating on $12,606,874 Class F Notes NATIONAL EASTERN: Court Approves T.M. Byxbee as Accountants NAVIOS MARITIME: Creates South American Logistics w/ Horamar Group NEW CENTURY: S&P Junks Ratings on Three Classes of Certificates PAETEC HOLDING: Launches Exchange Offer for 9.5% Senior Notes PERFORMANCE PROPERTIES: Section 341 Meeting Continued to Jan. 14 POWER RECEIVABLE: S&P's BB+ Rating Unaffected by CDWR'S "A" Rating RACE POINT: Fitch Affirms Low-B Ratings on Three Note Classes RAPID LINK: Extends Maturity of GCASIF Notes to Nov. 1, 2009 RASC SERIES 2003-KS3: Moody's Cuts Ratings on Two Trust Classes RASC SERIES 2003-KS6: Moody's Lowers Ratings on Three Classes RAMP SERIES 2003-RS9: Moody's Junks Ratings on Two Classes RES-CARE INC: S&P Holds BB+ Rating on Amended $250 Mil. Facility RICHARD SMITH: Case Summary & 19 Largest Unsecured Creditors RITE AID: Reports Sales of $2.201 Billion in December 2007 RITE AID: To Exit Las Vegas Market; Sells Prescription Files RITE AID: Declares Series E and I Preferred Stock Dividends SCRIPPS VINEYARDS: Case Summary & Seven Largest Unsec. Creditors SMART BALANCE: S&P Revises Outlook to Stable from Negative STATE STREET: To Set $279MM 4th Qtr. Reserve for Legal Claims STATE STREET: James Phalen Back as Investment Arm's CEO STATE STREET: Earns $358 Million in Third Quarter STATE STREET: $279MM After-Tax Charge Cues Fitch's Rating Cuts STATE STREET: Moody's Holds B+ Bank Financial Strength Rating STATE STREET: S&P Says Ratings Unaffected by After-Tax Charge STIEFEL LABS: S&P Holds 'B+' Corporate Credit Rating SUNDALE LTD: Court Extends Schedules-Filing Period to January 11 SUSQUEHANNA AREA: Fitch Cuts Rating on $59.7MM Bonds to BB+ TARRANT COUNTRY: Moody's Retains 'Ca' Rating on Revenue Bonds TELLURIDE ENT: Chap. 11 Case Converted To Ch. 7 Liquidation TENASKA OKLAHOMA: S&P Retains Rating Despite Unscheduled Outage THOMAS MORLEY: Voluntary Chapter 11 Case Summary TRUMP ENT: New Credit Facility Cues S&P to Remove "BB-" Rating VONAGE HOLDINGS: Inks Pact Implementing MOU on Sprint's Lawsuit VYTERIS INC: Sept. 30 Balance Sheet Upside-Down by $16.3 Million WARNER CHILCOTT: Good Financial Profile Cues S&P's Pos. Outlook WEEKS STREET: Section 341(a) Meeting Scheduled for January 16 WELLS FARGO: Fitch Affirms Ratings on 49 Certificate Classes WELLS FARGO: Fitch Holds 'CCC' Rating on Class B-5 Loan WHEELING-PITTSBURGH: Posts $56.5 Million Net Loss in 3rd Quarter YRC WORLDWIDE: Declining Credit Profile Cues Fitch's Rating Cut * Ontario Gets Series of Tax Breaks Beginning January 1 * Patrick J. Trostle Joins Jenner & Block-New York as Partner * Fitch Identifies 11 US CMBS Transactions Exposed to Centro * Losses and Delinquencies Cues S&P's Rating Cuts on 16 Classes * S&P Cuts 89 Tranches' Ratings from 22 U.S. Cash Flow and CDOs * BOND PRICING: For the Week of Dec. 31, 2007 - Jan. 4, 2008 ********* 1633 BROADWAY: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: 1633 Broadway Mars Restaurant Corp. 1633 Broadway New York, NY 10019 Bankruptcy Case No.: 07-14062 Type of Business: The Debtor operates a restaurant. Chapter 11 Petition Date: December 28, 2007 Court: Southern District of New York (Manhattan) Judge: Allan L. Gropper Debtor's Counsel: Gary B. Sachs, Esq., and Scott R. Kipnis, Esq. Hofheimer Gartlier & Gross, LLP 530 Fifth Avenue New York, NY 10036 Tel: (212) 818-9000 Fax: (212) 869-4930 http://www.hgg.com/ Estimated Assets: $1,818,400 Estimated Debts: $3,011,004 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ MRI Broadway Rental Inc. claim $1,000,000 c/o Paramount Group Inc. 1633 Broadway New York, NY 10019 New York State Department $175,000 of Taxation and Finance W.A. Harriman State Campus Albany, NY 12227-0001 U.S. Foodservice Inc. $76,161 360 Van Brunt Street Englewood, NJ 07631 Fireman's Fund Insurance $52,191 Mid-Island Cleaning Inc. contract $43,500 Edward Don & Company $35,386 Park Avenue Foods $30,743 Davidoff & Malito LLP $30,096 Islandwide Food Service $19,364 Southern Wine and Spirits $14,508 Specialties Inc. Swede Farms $12,726 New York City Department $11,000 Finance Pepsi-Cola Bottling $10,304 Company Empire Merchants $7,064 Cosentini Associates $6,794 Certified Bakery $6,703 Spice House International $6,574 Georgia-Pacific $4,545 Conkur Printing Co. $4,226 Beantown MKTG & Promotions $3,537 94/BELLEVILLE RESTAURANT: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: 94/Belleville Restaurant, Inc. 11511 Belleville Road Belleville, MI 48111 Bankruptcy Case No.: 08-40012 Type of Business: The Debtor owns and operates restaurants. Chapter 11 Petition Date: January 2, 2008 Court: Eastern District of Michigan (Detroit) Judge: Phillip J. Shefferly Debtor's Counsel: Robert N. Bassel, Esq. 201 West Big Beaver, 6th Floor Troy, MI 48099 Tel: (248) 528-1111 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its largest unsecured creditors. A.R.E.I. NEWHALL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Lead Debtor: A.R.E.I. Newhall 9, L.L.C. 5 Ike Court Novato, CA 94945 Bankruptcy Case No.: 07-15210 Debtor-affiliates filing separate Chapter 11 petitions on January 3, 2008: Entity Case No. ------ -------- A.R.E.I. Newhall 28, L.L.C. 08-10062 A.R.E.I. Newhall 31, L.L.C. 08-10064 Debtor-affiliates filing separate Chapter 11 petitions on January 2, 2008: Entity Case No. ------ -------- A.R.E.I. Newhall 24, L.L.C. 08-10013 A.R.E.I. Newhall 20, L.L.C. 08-10018 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- A.R.E.I. Newhall 5, L.L.C. 07-15211 A.R.E.I. Newhall 27, L.L.C. 07-15212 A.R.E.I. Newhall 32, L.L.C. 07-15213 A.R.E.I. Newhall 30, L.L.C. 07-15214 A.R.E.I. Newhall 16, L.L.C. 07-15215 A.R.E.I. Newhall 18, L.L.C. 07-15216 A.R.E.I. Newhall 29, L.L.C. 07-22209 A.R.E.I. Newhall 3, L.L.C. 07-15244 A.R.E.I. Newhall 4, L.L.C. 07-15246 Type of Business: The Debtors own and manages real estate. Chapter 11 Petition Date: December 27, 2007 Court: Central District Of California (San Fernando Valley) Judge: Maureen Tighe Debtors' Counsel: David A. Tilem, Esq. 206 North Jackson Street, Suite 201 Glendale, CA 91206 Tel: (818) 507-6000 Fax: (818) 507-6800 Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 9, L.L.C. $6,788,861 $24,000,000 A.R.E.I. Newhall 5, L.L.C. $625,293 $24,000,000 A.R.E.I. Newhall 27, L.L.C. $771,417 $24,000,000 A.R.E.I. Newhall 32, L.L.C. $586,676 $24,000,000 A.R.E.I. Newhall 30, L.L.C. $277,722 $24,000,000 A.R.E.I. Newhall 16, L.L.C. $428,922 $24,000,000 A.R.E.I. Newhall 18, L.L.C. $1,343,520 $24,000,000 A.R.E.I. Newhall 29, L.L.C. $586,278 $24,000,000 A.R.E.I. Newhall 3, L.L.C. $911,007 $24,000,000 A.R.E.I. Newhall 4, L.L.C. $890,217 $24,000,000 Financial Condition of Debtors filing separate Chapter 11 petitions on January 2, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 24, L.L.C. $462,861 $24,000,000 A.R.E.I. Newhall 20, L.L.C. $200,880 $24,000,000 Financial Condition of Debtors filing separate Chapter 11 petitions on January 3, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 28, L.L.C. $366,930 $24,000,000 A.R.E.I. Newhall 31, L.L.C. $335,583 $24,000,000 The Debtors did not file lists of largest unsecured creditors. AFFILIATED COMPUTER: S&P Maintains 'BB' Corporate Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Dallas, Texas-based Affiliated Computer Services Inc. (ACS), and removed it from CreditWatch, where it had been placed with negative implications on March 20, 2007. The outlook is negative. The affirmation follows the withdrawal of a buyout offer by private equity firm Cerberus Capital Management, and led by ACS' chairman and founder, for over $8 billion (including the assumption of debt). "Although ACS' current debt levels (in the 3x area) are somewhat moderate for the rating given ACS' satisfactory business profile, the company has exhibited a much more aggressive financial policy in its willingness to pursue an LBO, and it may continue to pursue ongoing acquisitions and share repurchases," said Standard & Poor's credit analyst Philip Schrank. "At the 'BB' rating level, our expectation is that ACS will manage its debt leverage at 3x-5x over the intermediate term, which would allow it to complete its outstanding $800 million share repurchase program, as well as make some moderate-size acquisitions." The negative outlook reflects ACS' ability within its credit facilities to significantly increase debt to finance sizable share repurchases or acquisitions, if it desires. AIR DEVELOPMENT: Case Summary & Eight Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Air Development, L.L.C. P.O. Box 86 Hartford, AL 36344 Bankruptcy Case No.: 08-10001 Type of Business: The Debtor owns and manages real estate. Chapter 11 Petition Date: January 2, 2008 Court: Middle District of Alabama (Dothan) Debtor's Counsel: Collier H. Espy, Jr., Esq. Espy, Metcalf & Espy, P.C. P.O. Drawer 6504 Dothan, AL 36302-6504 Tel: (334) 793-6288 Total Assets: $800,100 Total Debts: $1,066,796 Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ C.I.T. Lending Services Corp. commercial property $1,059,420 1 C.I.T. Drive value of security: Livingston, NJ 07039 $800,000 Dean Sheilds, Rev. Comm. Ad valorem property $4,872 Geneva County taxes P.O. Box 326 Geneva, AL 36340 R. Bryan Thompson, C.P.A., Pre-petition $2,500 P.C. accounting services 504 North Watson Street Enterprise, AL 36330 Flowers Insurance Agency $1 Ronald Hovey balance associated $1 with construction contract Parsons Group, L.L.C. Judgment recovered in $1 the Small Claims Court of Houston City, AL on July 5, 2007 (S.M.-2007-1538) H Construction, Inc. balance associated $1 with construction contract Steadman S. Shealy, Jr. legal services Unknown ALLIED SECURITY: Sept. 30 Balance Sheet Upside-Down by $18 Million ------------------------------------------------------------------ Allied Security Innovations Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $6.1 million in total assets and $24.1 million in total liabilities, resulting in an $18.0 million total stockholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $1.5 million in total current assets available to pay $23.8 million in total current liabilities. The company reported a net loss of $3.8 million on net sales of $1.4 million forthe third quarter ended Sept. 30, 2007, compared with a net loss of $291,791 on net sales of $1.3 million in the same period a year ago. The increase in net loss was primarily due to the change in accounting procedures in which convertible debentures are treated as derivative according to the guidance of SFAS133 and EITF00-19. The company recorded a loss of $3.8 million as a result of the change in fair market value of derivative liability in the three months ended Sept. 30, 2007, compared with a gain of $36,539 in the corresponding 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?26bc Going Concern Doubt Bagell, Josephs, Levine & Company L.L.C., in Gibbsboro, N.J., expressed substantial doubt about Digital Descriptor Systems Inc. nka. Allied Security Innovations 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 said that the company did not generate sufficient cash flows from revenues during the year ended Dec. 31, 2006, to fund its operations. Also at Dec. 31, 2006, the company had negative net working capital of $11,855,140. About Allied Security Based in Wall, New Jersey, Allied Security Innovations Inc. (OTC BB: ASVN.OB) fka. Digital Descriptor Systems Inc. -- http://www.ddsi-cpc.com/ -- develops and markets integrated enterprise-wide image applications specifically designed for criminal justice organizations. Customers include states, cities, counties, corrections, justice, and public safety agencies. Its subsidiary, CGM Applied Security Technologies Inc., with locations in Wall, N.J. and a factory in Staten Island, N.Y., is a manufacturer and distributor of Homeland Security products, including indicative and barrier security seals, security tapes and related packaging security systems, protective security products for palletized cargo, physical security systems for tractors, trailers and containers, as well as a number of highly specialized authentication products. ALTERNATIVE A: S&P Expects Further Decline of Issuances in 2008 --------------------------------------------------------------- Following a second quarter in which issuance of Alternative-A (Alt-A) mortgages reached heights previously unseen, it decreased sharply in third-quarter 2007, according to a recent report by Standard & Poor's Ratings Services. The dramatic drop, to $39.3 billion in issuance from the previous quarter's all-time high of $109.5 billion, is the result of unprecedented credit and liquidity disruptions-affecting both borrowers and lenders-that emerged in the U.S. residential mortgage market over the summer in response to the rapidly deteriorating housing sector. "Severe delinquencies in the 2006 and 2007 subprime and Alt-A vintages have risen at an extremely high and unexpected rate in recent months, especially during the latter part of the second quarter and through the third quarter, and there are no signs of the trend abating in the near term," said Standard & Poor's Ratings Services credit analyst Jeff Watson, a director in the residential mortgage-backed securities (RMBS) group. "In response, investor demand for U.S. RMBS has fallen sharply, which has limited a key source of funding available to originators and issuers from the secondary market." Standard & Poor's said it expects Alt-A issuance to further decline during fourth-quarter 2007 and into early 2008 as the industry continues to feel the effects of limited liquidity in the U.S. RMBS market. ANTARES FUNDING: Fitch Puts Low-B Ratings Under Negative Watch -------------------------------------------------------------- Fitch Ratings has placed five classes of notes issued by Antares Funding, LP. on Rating Watch Negative, effective immediately: -- $28,500,000 class C-1 rated 'BBB'; -- $15,000,000 class C-2 rated 'BBB'; -- $23,911,911 class D-1 rated 'BB'; -- $14,065,830 class D-2 rated 'BB'; -- $42,000,000 class E rated 'B-'. Antares is a collateralized debt obligation managed by GE Asset Management, Inc. which closed Dec. 14, 1999. Antares was established to issue approximately $600 million in debt and equity securities and invest the proceeds in a portfolio of predominantly high-yield bank loans, middle-market loans, and bonds. As of the trustee report dated Dec. 4, 2007, more than $67 million of the par amount of the corporate middle-market loans was not publicly rated, composing approximately 40% of the non-defaulted assets in the portfolio. Due to the lack of recent data received from Antares on these corporate middle-market loans, Fitch is unable to evaluate the current risk of the deal. As a result, the current ratings may no longer reflect the risk associated with the rated notes. ARVINMERITOR INC: S&P Holds BB Rating on $700MM Credit Facility --------------------------------------------------------------- Standard & Poor's Ratings Services said that although ArvinMeritor Inc. amended its credit agreement on Dec. 10, 2007, the issue- level rating on its $700 million revolving credit facility due 2011 remains unchanged at 'BB' (two notches higher than the corporate credit rating), and the recovery rating on this debt remains '1', indicating an expectation of very high (90%-100%) recovery in the event of a payment default. The amendments reduced the facility to $700 million from $900 million, incorporated a new financial covenant package, and modified the pricing schedule. The corporate credit rating on ArvinMeritor is 'B+', and the outlook is negative. "The rating reflects the company's weak profitability, which has recently kept cash flow negative, along with the cyclical and competitive pricing pressures of the capital-intensive automotive and heavy-vehicle component supply industry," said Standard & Poor's credit analyst Lawrence Orlowski. ASSET BACKED: Fitch Junks Rating on $6.7MM Class M10 Debentures --------------------------------------------------------------- Fitch Ratings has taken rating actions on Asset Backed Securities Corporation Home Equity Loan Trust 2007-HE2. Affirmations total $74.3 million and downgrades total $189 million. In addition, $87.6 million has been placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: ABSC 2007-HE2 -- $101.4 million class A1 downgraded to 'AA-' from 'AAA' (BL: 37.33, LCR: 1.94), placed on Rating Watch Negative; -- $74.3 million class A2 affirmed at 'AAA' (BL: 60.85, LCR: 3.17); -- $20.9 million class A3 rated 'AAA' (BL: 49.86, LCR: 2.60), placed on Rating Watch Negative; -- $30 million class A4 rated 'AAA' (BL: 39.20, LCR: 2.04), placed on Rating Watch Negative; -- $13.4 million class A5 downgraded to 'AA-' from 'AAA' (BL: 37.42, LCR: 1.95), placed on Rating Watch Negative; -- $16.4 million class M1 downgraded to 'A+' from 'AA+' (BL: 32.41, LCR: 1.69), placed on Rating Watch Negative; -- $16.4 million class M2 downgraded to 'A-' from 'AA' (BL: 27.42, LCR: 1.43), placed on Rating Watch Negative; -- $5 million class M3 downgraded to 'BBB+' from 'AA-' (BL: 25.87, LCR: 1.35), placed on Rating Watch Negative; -- $5 million class M4 downgraded to 'BBB' from 'A+' (BL: 24.28, LCR: 1.26), placed on Rating Watch Negative; -- $5.7 million class M5 downgraded to 'BBB-' from 'A' (BL: 22.43, LCR: 1.17), placed on Rating Watch Negative; -- $3.8 million class M6 downgraded to 'BBB-' from 'A-' (BL: 21.13, LCR: 1.10), placed on Rating Watch Negative; -- $5.1 million class M7 downgraded to 'BB' from 'BBB+' (BL: 19.29, LCR: 1.00), placed on Rating Watch Negative; -- $4.6 million class M8 downgraded to 'B' from 'BBB' (BL: 17.61, LCR: 0.92), placed on Rating Watch Negative; -- $5 million class M9 downgraded to 'B' from 'BBB-' (BL: 15.90, LCR: 0.83), placed on Rating Watch Negative; -- $6.7 million class M10 downgraded to 'CCC' from 'BBB-'. Deal Summary -- Originators: Argent (100%); -- 60+ day Delinquency: 11.66%; -- Realized Losses to date (% of Original Balance): 0.05%; -- Expected Remaining Losses (% of Current Balance): 19.21%; -- Cumulative Expected Losses (% of Original Balance): 18.28%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. AUDIOVOX CORP: Completes $19.7MM Buyout of Thomson's Consumer ------------------------------------------------------------- Audiovox Corporation completed its acquisition of Thomson's Consumer Electronics Audio Video Business outside of Europe for $19.7 million, plus a net asset payment, and includes a five-year fee, which begins in 2010, related to the RCA brand. The acquisition includes worldwide rights to the RCA brand for consumer electronics audio video product lines except TVs and certain additional product categories. Audio Video Products acquired include DVD players and recorders, portable DVD players, GPS devices, HD and Internet Radios, stand alone ATSC terrestrial television converters, clock radios, MP3 and MP4 players, digital cameras and camcorders and other product that falls within the audio/video field of use. In total, Audiovox will be acquiring approximately $400 million in sales and expects to retain $150 million of that related to the RCA branded MP3 and MP4 players, digital cameras, camcorders and clock radios. The company is entering into a license agreement with Multimedia Device Ltd., a Chinese manufacturer to market the remaining product categories acquired in the transaction. The company expects the transaction to be accretive within the first year. "Our goal with this acquisition was to further control and consolidate the RCA brand and prevent fractionalization at the retail level," Patrick Lavelle, president and CEO of Audiovox stated. "We believe this acquisition will add approximately $150 million in sales and a revenue stream with an up front $10 million payment." "In addition, it will allow us to spread fixed overhead over a higher sales base, which will further reduce OPEX percentage, since the acquired overhead will be limited," Mr. Lavelle said. "We will establish Audiovox Mexico utilizing the former Thomson facility there, giving Audiovox a presence in that growing market and allowing us to expand the entire Audiovox line." "Over the past year, we have made five acquisitions including this one that should generate sales of approximately $300-$350 million ... for approximately $100 million," added Mr. Lavelle. "We believe we have purchased wisely and that these acquisitions should lead to improved operating and financial performance in our next fiscal year." The company intends to integrate the Thomson and Technuity assets into its operations during the remainder of its fiscal 2008 fourth quarter and fiscal 2009 first quarter and would have much of the work complete by May 31, 2008. The newly acquired assets will be included in Audiovox Electronics Corporation's Consumer Electronics group. In January 2007, Audiovox completed its acquisition of Thomson's America's consumer electronics accessory business, which included the rights to the RCA brand for consumer electronics accessories. That acquisition also included the Recoton, Spikemaster, Ambico and Discwasher brands for use on any products and the Jensen, Advent, Acoustic Research and Road Gear brands for accessory products that complemented the purchase of those brands for electronics products in 2003. In March 2007, Audiovox German Holdings GmbH completed the acquisition of Oehlbach a European market leader in accessories. That was followed by an August 2007 acquisition of Incaar Limited, a UK business that specializes in rear seat entertainment systems, which added to our European operation an accessory and OE component. In November 2007, Audiovox Accessories Corporation completed the acquisition of all of the outstanding stock of Technuity, Inc., a battery and power products industry and exclusive licensee of the Energizer brand in North America for rechargeable batteries and battery packs for camcorders, cordless phones, digital cameras, DVD players and other power supply devices. This acquisition was made to further strengthen the company's position in the accessory market. About Audiovox Headquartered in Hauppauge, New York, Audiovox Corp. (Nasdaq: VOXX) -- http://www.audiovox.com/-- is a supplier and value added service provider in the consumer electronics industry. The company conducts its business through subsidiaries and markets mobile and consumer electronics products both domestically and internationally under several of its own brands. It also functions as an original equipment manufacturer supplier to a wide variety of customers, through several distinct distribution channels. * * * In October 1997, Moody's Investors Service placed Audiovox Corp.'s long term corporate family and bank loan debt ratings at 'B1'. Both ratings still hold to date. AVNET INC: Acquires Semiconductor Distributor YEL Electronics ------------------------------------------------------------- Avnet Inc. has acquired YEL Electronics Hong Kong Ltd. YEL is a distributor of interconnect, passive, electromechanical and limited semiconductor components in the Asia region, representing over 30 franchised suppliers. YEL generated approximately $200 million of revenue in the twelve months ended December 2007 with over 80% coming from IP&E products. With the acquisition, Avnet expects to gain a team of talented and knowledgeable employees serving over 2000 customers in 8 countries across Asia Pacific. The acquisition, Avnet relates, also expands Avnet Electronics Marketing's franchised line card with new IP&E suppliers in the region. Harley Feldberg, president of Avnet Electronics Marketing global, noted that the acquisition is another significant step in Electronics Marketing's strategy to accelerate growth. "The IP&E distribution industry in Asia is highly fragmented, and Avnet intends to actively participate in its consolidation," Mr. Feldberg said. "The acquisition of YEL provides an excellent opportunity to supplement our organic growth initiatives by adding a well respected regional distributor with a management team that shares our focus on profitable growth and superior customer service. With this acquisition, we have increased our IP&E business in Asia by over 50% and become the largest IP&E distributor in the region." Avnet YEL will operate as a specialist division to maintain its focus on IP&E profitable growth. The combined customer base will also provide additional opportunities for cross selling as our sales organizations will have an expanded line card supported by Avnet's world-class supply chain management and logistics capabilities. The transaction is expected to be immediately accretive to earnings, excluding minimal integration charges, and supports Avnet's long-term return on capital goals. "The acquisition of YEL is a clear demonstration of Avnet's commitment to invest in the high growth Asia components market." Stephen Wong, president of Avnet Electronics Marketing Asia added. "With a larger team of talented people, a broadened account base and an expanded line card, Electronics Marketing Asia will have additional opportunities to accelerate organic growth while leveraging our scale and scope advantages to deliver superior value to our trading partners." In addition to distributing an industry-leading line card comprised of the suppliers of semiconductor and IP&E products, Electronics Marketing Asia also offers a wide portfolio of value added services -- from design, demand creation and technical support to a supply chain and logistic services. The company relates that this acquisition further validates Avnet's desire and ability to continue investing in this high growth region. About YEL Electronics Hong Kong Ltd Headquartered in Hong Kong, YEL Electronics Hong Kong Ltd. -- www.yel-electronics.com/ -- invests in people, linecards, supply chain solutions and value-added services to ensure serving its customers to their satisfaction. YEL was established in 1992, and has 16 sales offices and 3 major warehouses in 8 countries. YEL has over 300 qualified service-oriented staffs that serves more than 2000 customers in the Asia Pacific region. About Avnet Electronics Avnet Electronics Marketing -- http://www.em.avnet.com/-- is an operating group of Phoenix-based Avnet, Inc. (NYSE:AVT), a Fortune 500 company. Avnet Electronics Marketing serves electronic original equipment manufacturers and electronic manufacturing services providers in more than 70 countries, distributing electronic components from leading manufacturers and providing associated design-chain and supply-chain services. About Avnet Inc. Headquartered in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. AXCESS INT'L: Sept. 30 Balance Sheet Upside-Down by $3.1 Million ---------------------------------------------------------------- Axcess International Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $1.6 million in total assets and $4.7 million in total liabilities, resulting in a $3.1 million total stockholders' deficit. At Sept. 30, 2007, the company's consolidated balance sheet also showed strained liquidity with $1.5 million in total current assets available to pay $4.7 million in total current liabilities. Net loss for the third quarter of 2007 was $1.1 million, as compared to a net loss of $873,608 in the prior year period. The increase in the net loss is mainly related to the gross margin contribution of the Barbados contract offset by an increase in expenses as the company develops the Enterprise Dot, its next generation RFID product. Revenue was $281,656 for the three months ended Sept. 30, 2007, a decrease of 24% from revenue of $369,621 in the same quarter in 2006. Gross margin was 51%, or $144,785, in the third quarter 2007 as compared to 47%, or $172,242, in the 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?26cd Going Concern Doubt Hein & Associates LLP, in Dallas, expressed substantial doubt about Axcess International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and resulting continued dependence upon access to additional external financing. About Axcess International Headquartered in Carrollton, Texas, Axcess International Inc. (OTC BB: AXSI.OB) -- http://www.axcessinc.com/-- delivers wireless intelligence through real-time business activity monitoring solutions that improve productivity, security and revenue growth. The systems derive wireless intelligence from automatic advanced workforce management, workflow management, asset monitoring and distributed sensing. Its revolutionary and patented Dot micro- wireless technology platform combines RFID, RTLS and wireless sensing for better decision-making and control throughout the enterprise. Axcess is a portfolio company of Amphion Innovations plc (AIM: AMP). BAPTIST FOUNDATION: Auction of Remaining Assets Set for Jan. 17 --------------------------------------------------------------- BFA Liquidation Trust is set to sell the remaining assets of Baptist Foundation of Arizona, The Business Journal of Phoenix reports. The Southwest Real Estate Auctioneers said in its Web site that the auction will be on Thursday, Jan. 17, 2008, at 2:00 p.m., Sheraton Cresent Hotel 2620 West Dunlap Ave (I-17 & Dunlap) in Phoenix, Arizona. Over 10 properties are to be sold including custom home lots, commercial and horse property. For information and to get a bidder's information kit, parties may call (602) 995- 8500. BFA Liquidation Trust can be reached at: Clifton R. Jessup, Jr. Liquidating Trustee 1313 East Osborn Road, Suite 250 Phoenix, AZ 85014 Tel: (602) 222-3700 Fax: (602) 222-3770 http://www.bfalt.org/ Southwest Real Estate Auctioneers -- http://www.swreauctioneers.com/-- serves as the auctioneer of the Debtor's assets. About Baptist Foundation of AZ The Baptist Foundation of Arizona Inc. -- http://www.bfaz.org/-- manages church building funds and retirement funds for a few thousand Baptist layman. Profits came from land investments in the red-hot Arizona market. In August 1999, the Arizona Corporation Commission halted Foundation security sales because it allegedly misrepresented investment returns. It also said the Foundation does not have the money in its corporate accounts to cover money owed investors. Investors and state regulators criticize the restructuring plan, which they say leaves too many questions unanswered. Final defendants in the Baptist Foundation fraud case were sentenced early 2007. The case reportedly cost elderly investors millions of dollars after the Foundation collapsed in 1999 and leaders were charged with fraud in attempt to conceal real estate losses, poor investment decisions and deceptive accounting. The Foundation filed for chapter 11 bankruptcy protection in Nov. 11, 1999, and listed $640 million in debts and $160 million to $200 million in assets. BERRY PLASTICS: Inks $500 Mil. Merger Deal With Captive Holdings ---------------------------------------------------------------- Berry Plastics Corporation, an Apollo Management LP and Graham Partners portfolio company, entered into an agreement to acquire 100% of the outstanding common stock of Captive Holdings Inc., the parent company of Captive Plastics Inc., a First Atlantic Capital Ltd. portfolio company. Pursuant to the acquisition agreement, Berry will pay $500 million for Captive, subject to certain customary adjustments. Berry has obtained financing commitments to finance the transaction. The transaction will close in the first quarter of 2008 and is subject to customary closing conditions. "The acquisition of Captive is another step in our quest to be a total solution provider of plastic packaging with the Captive product line significantly enhancing our abilities to better serve our customers," Ira Boots, chairman and CEO of Berry Plastics Corporation, stated. "We are excited about the skill sets that the Captive employees bring to Berry for the benefit of all of our customers, employees and investors. Captive has a history of strong growth and fits in perfectly with our existing product lines," Mr. Boots added. "We are very pleased with the success of Captive over the past three years and believe the business is well positioned for future growth as part of Berry Plastics," Roberto Buaron, chairman of First Atlantic Capital, said. "Our strategy of expanding Captive through internal investment and add-on acquisitions has built a very strong company and generated an excellent outcome for our investors." "Captive is an excellent fit with Berry Plastics and, together, we will offer a more integrated product line with the ability and scale to serve the growing plastic packaging needs of our customers," Peter Martin, president and CEO of Captive, said. "We look forward to joining the Berry family." The Captive disclosure is the second acquisition declared by Berry in the last few days. On Dec. 19, 2007, Berry divulged the acquisition of MAC Closures Inc. About Berry Plastics Corporation Headquartered in Evansville, Nebraska, Berry Plastics Corporation -- http://www.berryplastics.com/ -- is a manufacturer and supplier of a diverse mix of rigid plastics packaging products focusing on the open top container, closure, aerosol overcap, drink cup and housewares markets. The company sells a broad product line to over 12,000 customers. Berry Plastics concentrates on manufacturing high quality, value-added products sold to marketers of institutional and consumer products. In 2004, the company created its international division as a separate operating and reporting division to increase sales and improve service to international customers utilizing existing resources. The international segment includes the company's foreign facilities and business from domestic facilities that is shipped or billed to foreign locations. About Captive Plastics, Inc. Based in Piscataway, New Jersey, Captive Plastics -- http://www.captiveplastics.com -- makes plastic containers for the health care, personal care, and food and beverage industries. Captive Plastics operates over a dozen manufacturing facilities across the US and provides over 550 varieties of rigid plastic packaging products, including wide mouth, cylinder, round, and square containers. Its services include engineering, computer aided design, mold construction, production, decorating, and filling. First Atlantic Capital, a private investment firm, owns a majority interest in Captive Plastics. * * * As reported in the Troubled Company Reporter on June 12, 2007, Moody's Investors Service downgraded the Corporate Family Rating of Berry Plastics Holding Corporation to B3 from B2. The outlook is stable. BERRY PLASTICS: S&P Retains CCC+ Rating on Senior Unsecured Debt ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its first- and second- lien senior secured debt ratings on Berry Plastics Holding Corp. on CreditWatch with negative implications. At the same time, S&P affirmed its 'B' corporate credit ratings on Berry Plastics Holding Corp. and its parent Berry Plastics Group Inc. as well as its 'CCC+' senior unsecured and subordinated debt ratings. The outlooks remain negative. These rating actions follow Berry's announcement that it has agreed to acquire privately held Captive Holdings Inc., parent of Captive Plastics Inc., for about $500 million in cash. Captive manufactures blow-molded bottles and injection-molded closures for the food, health care, spirits, and personal care markets at 13 plants across the U.S. Although Berry has not released details regarding financing for the transaction, it has announced that it has obtained financing commitments and expects the transaction to close in the first quarter of 2008, subject to customary closing conditions. "The CreditWatch placement indicates that we could lower or affirm the ratings on the first- and second-lien debt, depending on financing for the acquisition and the implications for recovery prospects for these instruments in the post-acquisition capital structure," said Standard & Poor's credit analyst Cynthia Werneth. "Recovery prospects could deteriorate if Berry finances the acquisition with additional secured debt." The affirmation of the corporate credit rating reflects S&P's view that even if the transaction is all debt-financed, it's unlikely to materially worsen Berry's already very aggressive debt leverage. As of Sept. 29, 2007, total debt (adjusted to capitalize operating leases) was about $3.4 billion, and total adjusted debt to EBITDA pro forma for recent acquisitions and expected synergies was close to 7x. S&P expects liquidity to remain sufficient to meet all near-term operating and financing needs. The affirmation of the ratings on the senior unsecured and subordinated debt, which are both rated 'CCC+', two notches below the corporate credit rating, indicates S&P's expectation that these ratings will remain unchanged following completion of the Captive transaction. The negative outlook associated with the corporate credit rating points to the risk of a downgrade if operating problems, difficulty integrating recent acquisitions, or market factors such as rapidly rising resin costs or demand weakness forestall strengthening of Berry's financial profile or cause it to weaken further. S&P could also lower the ratings if liquidity unexpectedly deteriorates. BERTHEL GROWTH I: Sept. 30 Balance Sheet Upside-Down by $5.3 Mil. ----------------------------------------------------------------- Berthel Growth & Income Trust I's consolidated balance sheet at Sept. 30, 2007, showed $5.8 million in total assets and $11.1 million in total liabilities, resuting in a total net assets deficit of $5.3 million. The Trust reported a $23,598 net increase in net assets on total revenues of $25,304 for the third quarter ended Sept. 30, 2007, compared with a net increase in net assets of $4,525 on total revenues of $39,994 for the same period in 2006. On July 25, 2007, management of the Trust Advisor decided to waive the management fees for 2007. This forgiveness of debt, in the amount of $73,471, is reflected in the financial statements during the third quarter of 2007. Net investment income was $23,598 in the three months ended Sept. 30, 2007, compared with a net investment loss of $95,475 in the same period last year. Net investment income reflects the Trust's revenues and expenses excluding realized and unrealized gains and losses on portfolio The Trust recognized an unrealized gain on investments of $100,000 in the three months ended Sept. 30, 2006, versus $-0- in the corresponding period in 2007. The change in the unrealized gains and losses are the result of carrying the Trust's portfolio of loans and investments at fair value. 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?26bd Going Concern Doubt As reported in the Troubled Company Reporter on Mar. 23, 2007, McGladrey & Pullen LLP expressed substantial doubt about Berthel Growth & Income Trust I's ability to continue as a going concern after auditing the Trust's consolidated financial statements for the years ended Dec. 31, 2006 and 2005. The auditing firm reported that the Trust continues to have a deficiency in net assets, as well as net losses. The auditing firm also added that Berthel SBIC LLC, a wholly owned subsidiary of the Trust, has agreed to liquidate its portfolio assets in order to pay its indebtedness to the United States Small Business Administration. In August, 2007, the SBIC and the SBA agreed to a one-year extension. The agreement requires principal payments on the debt to the extent the SBIC receives cash proceeds exceeding $250,000 for the sale or liquidation of investments. As of Sept. 30, 2007, $2,783,689 is outstanding under the loan agreement, which is secured by substantially all assets of the SBIC. About Berthel Growth Headquartered in Marion, Iowa, Berthel Growth & Income Trust I is registered under the Investment Company Act of 1940, as amended, as a nondiversified, closed-end management investment company electing status as a business development company. The Trust was formed on Feb. 10, 1995, under the laws of the State of Delaware and received approval from the Securities and Exchange Commission to begin offering shares of beneficial interest effective June 21, 1995. In accordance with the prospectus, the Trust was scheduled to terminate upon the liquidation of all of its investments, but no later than June 21, 2007. However, the Independent Trustees have extended the term of the Trust for one year to June 21, 2008. Berthel Fisher & Company Planning Inc., a wholly-owned subsidiary of Berthel Fisher & Company, is the Trust's investment advisor and manager. BLUEGRASS ABS: Poor Credit Quality Cues Moody's Ratings Review -------------------------------------------------------------- Moody's Investors Service placed under review for possible downgrade these notes issued by Bluegrass ABS CDO II Ltd.: Class description: $52,800,000 Class B Floating Rate Notes due April 2039 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Class description: $10,000,000 Type II Composite Notes due April 2039 -- Prior Rating: Baa2 -- Current Rating: Baa2, on review for possible downgrade In addition, Moody's also announced that it has downgraded and left on review for possible downgrade these notes: Class description: U.S.$15,000,000 Class C-1 Floating Rate Notes due April 2039 -- Prior Rating: Baa2 -- Current Rating: Ba3, on review for possible downgrade Class description: U.S.$7,400,000 Class C-2 Floating Rate Notes due April 2039 -- Prior Rating: Baa2 -- Current Rating: Ba3, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which has exposure to residential mortgage-backed securities and collateralized debt obligation securities. BORIS PAVLOV: Case Summary & 12 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Boris Pavlov 46 Preston Drive Gillette, NJ 07933 Bankruptcy Case No.: 07-29025 Chapter 11 Petition Date: December 28, 2007 Court: District of New Jersey (Newark) Judge: Morris Stern Debtor's Counsel: Melinda D. Middlebrooks, Esq. and Stuart M. Nachbar, Esq. Middlebrooks Shapiro & Nachbar, P.C. 1767 Morris Avenue, Suite 2A Union, NJ 07083 Tel: (908) 687-6161 Fax: (908) 687-9090 http://www.middlebrooksshapiro.com/ Estimated Assets: $1,978,029 Estimated Debts: $1,777,853 Debtor's 12 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bank of America $69,167 c/o Frederick J. Hanna & Associates 1655 Enterprise Way Marietta, GA 30067 AT&T Universal Card $25,595 P.O. Box 183065 Columbus, OH 43218-3065 FIA Card Servies, N.A. reference # $22,214 80 Holtz Drive 11165875 PMR Buffalo, NY 14225 Chase $18,911 American Express $17,984 Capital One $16,692 Chase Bank USA $16,127 The Palmer Firm, P.C. $8,233 Discover Card $4,529 DFS Services, LLC $3,935 Wells Fargo Financial Bank $1,921 Wells Fargo Financial $850 BUFFETS INC: Has Until Jan. 31 to Pay Interest on $640MM Sr. Notes ------------------------------------------------------------------ Buffets Inc. said late last week that it has elected to take advantage of the 30-day grace period with respect to the missed interest payment due Jan. 2, 2008, on its 12.5% senior notes due Nov. 1, 2014. The aggregate amount of this interest payment is approximately $18.75 million. The company explained that it is taking advantage of the grace period to pursue restructuring discussions with its creditors. However, there can be no assurance that the company will reach an agreement on any restructuring. The company said that failure to make the interest payments by Jan. 31, 2008, would constitute an event of default under the indenture for the senior notes that would permit the indenture trustee or holders of 25% or more of the senior notes to accelerate the maturity of the senior notes. In addition, Buffets said that failure to make the interest payment within the grace period would constitute an event of default under Buffets $640 million credit facility that would permit the administrative agent or lenders holding in excess of 50% of the indebtedness outstanding under the credit facility to terminate any commitments to extend credit to the company and accelerate the maturity of the indebtedness outstanding. As reported in the Troubled Company Reporter on Jan. 4, 2008, Buffets missed a coupon payment on a debt totalling $293 million. Matthew Lee, the debt trustee and customer service representative at U.S. Bank NA, said the company was not able to pay interest on its 12.5% notes maturing in 2014. The missed interest payment sent bond prices to another low and increased fears that corporate defaults are starting to rise. "Default rates are going to start to increase this year," Katalin Kutasi, a principal and investment manager for distressed debt at hedge fund Kellner DiLeo & Co. in New York stated. "A lot of them are going to be consumer-sensitive companies." About Buffet Inc. Based in Eagan, Minnesota, Buffets Inc., -- http://www.buffet.com/ -- and http://www.ryansrg.com/-- operates and franchises steak-buffet style restaurants principally under the "Old Country Buffet", "Hometown Buffet" brand names and grill/buffet format restaurants under the brand names "Ryan's" and "Fire Mountain". The company is the second largest family dining restaurant in the industry, operating 643 restaurants in 42 states. Total reported revenues as of Sept. 19, 2007 were approximately $1.55 billion. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Moody's Investors Service lowered Buffets' ratings reflecting the company's heightened probability of default as it approached a covenant violation on its maximum leverage ratio, primarily stemming from a further deterioration in its operating performance. The action also reflected increasing uncertainty over the company's capital structure now that the company has engaged Houlihan, Lokey, Howard & Zukin Capital to review its capital structure and business plan. The lowered ratings include Buffets' corporate family rating to Caa2 from Caa1, senior secured credit facilities rating to Caa1 from B2, and senior unsecured notes rating to Caa3 from Caa2. Approximately $940 million of debt securities were affected. The rating outlook remains negative. BUSK ENTERTAINMENT: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Busk Entertainment LLC P.O. Box 2849 Mission Viejo, CA 92690 Bankruptcy Case No.: 7-14507 Chapter 11 Petition Date: December 28, 2007 Court: Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Richard J. Reynolds, Esq. Turner Reynolds Greco & O'Hara 16845 Laguna Canyon Road, Suite 250 Irvine, CA 92618 Tel: (949) 474-6900 Fax: (949) 474-6907 http://www.trlawyers.com/ Estimated Assets: $1 million $10 million Estimated Debts: $500,000 to $1 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alfa Plaza trade debt $348,713 23276 South Point Drive Suite 112 Aliso Viejo, CA 92656 Talent Air trade debt $109,340 10880 Walker Street Cypress, CA 90630 Harrah's Theatre Equipment trade debt $76,938 25612 Dollar Street, Suite #1 Hayward, CA 94544 Lido Interior Drywall trade debt $67,351 Manley Builders trade debt $46,053 Superior Sign trade debt $36,745 Pacific Environmental trade debt $35,667 Planning Schindler Elavator trade debt $28,798 Picone Company trade debt $26,083 Paragon Schmidt trade debt $22,500 Topline Drafting Services trade debt $19,056 Messa Roofing trade debt $18,281 Berkey Welding trade debt $16,793 Southern Cal Fire Protection trade debt $12,510 Imperial Scaffolding trade debt $12,180 United Rentals trade debt $9,887 Occidental Services trade debt $7,500 Land Concern Ltd. trade debt $5,000 Desa Structural trade debt $4,600 Jerry Wyman trade debt $3,500 C&S SOLOMONS: Case Summary & 16 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: C.&S. Solomons Enterprise, Inc. dba Catamaran's Restaurant P.O. Box 1556 Solomons, MD 20688 Bankruptcy Case No.: 08-10017 Type of Business: The Debtor owns and manages restaurants. Chapter 11 Petition Date: January 2, 2008 Court: District of Maryland (Greenbelt) Judge: Paul Mannes Debtor's Counsel: Howard M. Heneson, Esq. 810 Glen Eagles Court, Suite 301 Towson, MD 21286 Tel: (410) 494-8388 Fax: (410) 494-8389 Total Assets: $3,378,000 Total Debts: $2,711,863 Debtor's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Thomas Seymour personal loan $980,000 7795 Penn Manor Court Port Tobacco, MD 20677 Internal Revenue Service (941) Withholding $110,000 Special Procedures DIvision tax 31 Hopkins Plaza, Room 1120 Baltimore, MD 21201 Tribul Merchant Services cash advance $65,000 55 Broad Street, 2nd Floor New York, NY 10004 Dennis Grimsley personal loan $35,000 Comptroller of Maryland state property tax $20,000 state sales tax $15,000 U.S. Foodservice/Baltimore food deliveries $14,000 E. Goodwin & Sons, Inc. food deliveries $12,000 Ziner Tax Service accounting services $5,000 B.M.E. Business Systems P.O.S. System $4,500 Robert's Oxygen Co., Inc. CO-2 Deliveries $2,500 Mudd, Mudd & Fitzgerald, P.A. legal fees $2,500 Bookkeeping by Blanche accounting services $2,030 Waste Management refuse service $1,500 Suntrust Bank/Merchant credit card $1,500 Services servicing fees Nards Entertainment Satellite $1,157 Calvert County Treasurer's Personal Property $176 Office Tax CARBIZ INC: Increases Credit Facility to $111.98 Million -------------------------------------------------------- CarBiz Inc. has increased its credit facility with SWC Services LLC and AGM LLC from $30 million to a funding package of up to $111,975,000. The facility was used to: -- acquire the 26 dealerships in seven Midwestern states of Astra Financial Services Inc. and Calcars AB Inc. in October 2007 (approximately $22 million); -- finance CarBiz's Texas business that it acquired on December 24 ($15 million to date); and -- fund present operations and future growth. In the acquisition of the Texas business, the $15 million funded to date has been used to acquire approximately 1,500 used car and truck loans to spearhead CarBiz's newly formed "Superstore" operation in Houston, Texas. In its "Superstore," the typical vehicle will be financed by CarBiz at $15,000 with a four year term compared to $6,000 at its typical store. In addition to funds that have been made available for present operations under the facility, another $4 million has been set aside to provide inventory financing for CarBiz and the remaining balance, approximately $60 Million, will be used for future growth if certain terms and conditions under the facility are satisfied. "We know we have a solid business plan and others are starting to see it too," CarBiz CEO Carl Ritter commented. "This significant financing package, which is non dilutive to our shareholders, tells everyone that we are definitely on the right track as we start the New Year." About Carbiz Inc. Headquartered in Sarasota, Florida, CarBiz Inc. (OTC BB: CBZFF.OB) -- http://www.carbiz.com/-- owns and operates a chain of "buy- here pay-here" dealerships through its CarBiz Auto Credit division. The company is also a provider of software, training and consulting solutions to the United States automotive industry. CarBiz's suite of business solutions includes dealer software products focused on the "buy-here pay-here," sub-prime finance and automotive accounting markets. Capitalizing on expertise developed over 10 years of providing software and consulting services to "buy-here pay-here" businesses across the United States, CarBiz entered the market in 2004 with a location in Palmetto, Florida. CarBiz has added two more credit centers since - in Tampa and St. Petersburg - and recently acquired a large regional chain in the Midwest, bringing the total number of dealerships to 26 in eight states. Going Concern Doubt As reported in the Troubled Company Reporter on Dec. 20, 2007, Christopher, Smith, Leonard, Bristow & Stanell P.A., in Sarasota, Florida, expressed substantial doubt about Carbiz Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Jan. 31, 2007, and 2006. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. CHECK ELECT: Section 341(a) Meeting Scheduled for February 12 ------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a meeting of Check Elect Inc. and its debtor-affiliates' creditors on Feb. 12, 2008, 9:00 a.m., at the U.S. Trustee's Office, Room 2610, 725 South Figueroa Street, in Los Angeles, California. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Based in San Francisco, California, Check Elect, Inc. and its affiliates -- http://www.paybytouch.com/-- are engaged in biometric authentication for loyalty and payments. The Debtor and nine of its affiliates filed for Chapter 11 protection on Dec. 14, 2007 (Bankr. C.D. Calif. Lead Case No. 07-21768). James O. Johnston, Esq., at Hennigan, Bennett, & Dorman, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed assets of $1 million to $100 million and debts of $100 million to $500 million. CHESAPEAKE ENERGY: Fitch Attaches 'BB' Issuer Default Rating ------------------------------------------------------------ Fitch Ratings considered Chesapeake Energy Corporation's recent sale of proved reserves via a volumetric production payment for $1.1 billion as debt equivalent. In the transaction, Chesapeake sold scheduled quantities of natural gas from interest in over 4,000 producing wells for a 15-year period. The transaction, which closed on Dec. 31, 2007, includes approximately 210 bcfe of proved reserves and 55 mmcfe per day of current net production. Chesapeake retains the obligation to deliver the scheduled quantities of gas which includes responsibility for all production costs and production taxes over the 15-year period. Chesapeake has also retained the drilling rights on the properties below currently producing intervals and outside of existing producing wellbores. Chesapeake's asset monetization is consistent with the revised financial plan the company announced during the second half of 2007. This plan also includes future asset monetizations in 2008 and 2009 for proceeds of at least $2 billion utilizing the VPP structure. Under the company's previous financial strategy, management had attempted to fund cash flow shortfalls (i.e. for growth capital) via a balanced strategy of approximately 50/50 debt and equity. The revised financial plan deviates from this balanced funding strategy and is expected to result in a much higher percentage of growth capital being funded with debt. As a result, debt levels, as measured by debt/boe of proven reserves, could increase from current levels which are already considered high for the existing ratings. Near-term, the proceeds received from the transaction are expected to be used to reduce revolver borrowings and therefore the transaction is expected to have only minor impacts on the company's credit metrics. Longer-term, the proceeds and the increased borrowing capacity are expected to support higher levels of capital expenditures and could therefore result in further deterioration of credit metrics. Future rating action will be determined based on the company's success in growing both reserve and production levels combined with the revised financial strategy which includes a larger component of debt financing. Additional factors that will be considered include the company's hedging strategy, capital expenditure levels and the resulting levels of free cash flows. Fitch rates Chesapeake's debts -- Issuer Default Rating at 'BB'; -- Senior unsecured debt at 'BB'; -- Senior secured revolving credit facility and hedge facilities at 'BBB-'; -- Convertible preferred stock at 'B+'. The Rating Outlook is Negative. Chesapeake is an Oklahoma City-based company focused on the exploration, production and development of natural gas. The company's proved reserves remain predominantly natural gas and are based 100% in North America. Chesapeake's operations are concentrated primarily in the Mid-Continent, South Texas, the Permian Basin, and the Appalachia Basin. The company's reserve growth in recent years reflects the company's aggressive acquisition strategy and consistent success through the drill-bit. CLEAR CHANNEL: TV Unit President and CEO Donald D. Perry Resigns ---------------------------------------------------------------- Clear Channel Communications disclosed that Donald D. Perry, president and chief executive officer of Clear Channel Television, will depart the company to pursue the next phase of his broadcast career. Craig Millar, senior vice president, Southern Region will assume Perry's duties on an interim basis until a new president and chief executive officer is named. "Don has made significant contributions to Clear Channel, to CCTV, and to the television industry during his long tenure with our company," Mark Mays, president and CEO of Clear Channel Communications, said. "He's a seasoned executive and we anticipate that his high standards and professionalism will ensure continued industry contributions. We sincerely thank him and wish him well in his future endeavors." Perry was named to his position in January 2006, and had served as executive vice president and chief operating officer of the division since 2005. He has also served as vice president and general manager of WOAI-TV since 1996, and as Southwest regional vice president of Clear Channel Television since 2002. About Clear Channel Communications 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 Dec. 20, 2007, Moody's Investors Service stated that it will likely downgrade Clear Channel Communications Inc.'s Corporate Family Rating to B2 when its change of control is completed. On Dec. 17, 2007, Clear Channel disclosed a tender offer and consent solicitation for its outstanding 7.65% senior notes due 2010 and its subsidiary, AMFM Operating Inc. announced a tender offer and consent solicitation for its 8% senior notes due 2008. CONSOLIDATED COMMS: Releases NPSI Shareholders Final Votes ---------------------------------------------------------- Consolidated Communications Holdings Inc. disclosed the final results of the North Pittsburgh Systems Inc. shareholder election associated with the merger completion announced on Dec. 31, 2007. The merger agreement provided that North Pittsburgh shareholders could elect to receive either $25.00 in cash, without interest, or 1.1061947 shares of Consolidated common stock for each share of North Pittsburgh common stock, subject to proration so that 80% of the North Pittsburgh shares are exchanged for cash and 20% are exchanged for stock. Of the 15,005,000 shares of North Pittsburgh common stock outstanding immediately prior to closing the merger: -- 12,398,398 shares, or approximately 82.6%, elected to receive cash; -- 1,349,601 shares, or approximately 9.0%, elected to receive stock; -- 1,257,001 shares, or approximately 8.4%, did not make an effective election. As a result, North Pittsburgh shares as to which a stock election was made will receive Consolidated common stock; North Pittsburgh shares as to which a cash election was made will receive cash for approximately 96.82% of those shares and Consolidated common stock for the remainder; and shares with respect to which no effective election was made will receive Consolidated common stock. Consolidated will not issue any fractional shares of stock and, instead, each North Pittsburgh shareholder immediately prior to the merger who would otherwise be entitled to a fractional share of Consolidated common stock (based on the total stock consideration into which the holder's North Pittsburgh shares have been converted in the merger) will receive an amount in cash equal to $18.53 multiplied by the fractional share interest to which the shareholder would otherwise be entitled. About Consolidated Communications Based in Mattoon, Illinois, Consolidated Communications Holdings, Inc. -- http://www.consolidated.com/-- is a rural local exchange company providing voice, data and video services to residential and business customers in Illinois and Texas. Each of the operating companies has been operating in their local markets for over 100 years. With approximately 241,000 local access lines and over 43,000 digital subscriber lines, the Company offers a wide range of telecommunications services, including local and long distance service, custom calling features, private line services, dial-up and high-speed Internet access, digital TV, carrier access services, and directory publishing. Consolidated Communications is the 17th largest local telephone company in the United States. * * * As reported in the Troubled Company Reporter on Oct. 19, 2007, Moody's Investors Service affirmed the B1 corporate family rating for Consolidated Communications Holdings Inc. and assigned a B1 rating to the proposed $950 million senior secured credit facilities at the company's direct subsidiaries, Consolidated Communications Acquisition Texas Inc., Consolidated Communications Inc., and Fort Pitt Acquisition Sub Inc. Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on Consolidated Communications Holdings Inc. and the 'BB' rating on the company's existing bank loan. The outlook is negative. DC PROPERTIES: Non-Filing of Reports Prompts Court to Dismiss Case ------------------------------------------------------------------ At the behest of the U.S. Trustee for Region 4, the U.S. Bankruptcy Court for the Southern District of West Virginia dismissed DC Properties LLC's Chapter 11 case after the Debtor failed to file reports and pay fees. As reported on the Troubled Company Reporter on Oct. 6, 2006, the U.S. Trustee asked the Court to convert the Debtor's chapter 11 case into one under Chapter 7 of the Bankruptcy Code due to the Debtor's failure to file operating reports for the months of June, July and August 2006. The Court denied the U.S. Trustee's motion in a November 2006 order, and instead directed the Debtor to file operating reports. Subsequently, the U.S. Trustee asked the Court to dismiss the Debtor's case for failure to: -- file documents particularly report of sale and operating report; and -- pay fees with certificate of service. Headquartered in Huntington, West Virginia, DC Properties, LLC filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D. W.Va. Case No. 05-26014). Joseph W. Caldwell, Esq., at Caldwell & Riffee, and Marshall C. Spradling, Esq., represented the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed assets between $1 million and $10 million and debts between $10 million and $50 million. DELPHI CORP: Seeks Provisional Allowance of Unreconciled Claims --------------------------------------------------------------- Delphi Corp. and its debtor-affiliates seek the provisional allowance or estimation of 1,817 claims solely for purposes of distributing the Discount Rights provided for the in First Amended Plan of Reorganization. The estimated allowed amounts for the claims aggregate $414,716,298, but majority of the claims are estimated at $0. The Plan provides that each holder of an Allowed General Unsecured Claim will receive: (i) the number of shares of New Common Stock equal to 77.3% of the Face Amount of the Allowed Claim and (ii) the entitlement to participate in the Discount Rights Offering. Discount Rights are to be distributed on a pro rata basis to holders of allowed claims in Class C - General Unsecured Claims under the Plan. The Plan provides in pertinent part that "[i]f a Claim of a Discount Rights Offering Eligible Holder is not Allowed or otherwise reconciled by the Debtors by the date of commencement of the Confirmation Hearing, such Claim shall be temporarily allowed, solely for purposes of participation in the Discount Rights Offering, in the amount so estimated by the Bankruptcy Court or agreed to by the holder of the claim and the Debtors." John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates that to make a pro rata distribution of the Discount Rights, it is necessary to estimate or temporarily allow any claims that have not been allowed, disallowed, or reconciled prior to the commencement of the Discount Rights Offering. Although the vast majority of claims against the Debtors have been allowed or reconciled, there remain a number of Unreconciled Claims that will need to be estimated or provisionally allowed for purposes of making the appropriate calculations for a pro rata distribution of the Discount Rights, Mr. Butler tells the Court. A list of the Unreconciled Claims, and their estimated allowed amounts is available for free at: http://bankrupt.com/misc/Delphi_RightsOffering_Caims.pdf The list includes certain holders of Supplemental Executive Retirement Program claims for which the holder has not yet filed a proof of claim, but for whom the Debtors will schedule an actuarially determined SERP claim prior to the confirmation hearing so that these claimants are able to participate in the Discount Rights Offering. In particular, several claims that were filed as secured claims or claims with other priority status, but which the Debtors assert should be reclassified as general unsecured claims, are included on the list in the amount of $0 because as currently classified they are not entitled to participate in the Discount Rights Offering under the Plan, Mr. Butler explains. The Debtors note that, to the extent that the Claimants will receive contract cure payments in cash, and those amounts are reconciled prior to the commencement of the Discount Rights Offering, the amount at which the claimants are entitled to participate in the Discount Rights Offering will be correspondingly reduced. The Debtors also propose that, should the provisional allowance or estimation results in a particular claimant's receiving more Discount Rights than the claimant should have received based on the ultimate allowed amount of the claim and those rights are transferred or exercised, then, in the Reorganized Debtors' sole discretion, (a) an amount of New Common Stock equivalent to the value of the Excess Discount Rights will be withheld from the ultimate distribution to such claimant or (b) the claimant will be required to remit payment to the Reorganized Debtors in an amount equal to the value of the Excess Discount Rights. The Debtors, in this request, do not seek estimation or temporary allowance of certain claims which, while filed as general unsecured claims, will not be entitled to distributions as general unsecured claims. These claims include Flow-Through Claims, which are not impaired under the Plan, and certain other unsecured claims that will be expunged or otherwise resolved on or shortly after the Effective Date of the Plan, or that have been or will be satisfied pursuant to other orders of the Court. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 104; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: UAW Objects to Management Compensation Plan -------------------------------------------------------- The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America objects to confirmation of Delphi Corp. and its debtor-affiliates' Joint Plan of Reorganization solely based on the Management Compensation Plan, which was made part of the Plan. The UAW reserves its right, after taking discovery, to amend, change or add to the assertions set forth herein, to reflect facts and evidence discovered. The proposed MCP includes, among other things, cash and equity emergence awards to be issued on the Plan's effective date, as well as other compensation to be paid to executives after the Effective Date, including a long-term incentive plan that purports to reserve 8% of Reorganized Delphi's fully diluted new common stock for annual grants to executives covered by the MCP. Peter D. DeChiara, Esq., at Cohen, Weiss and Simon LLP, in New York, avers that among other possible grounds that the UAW may assert for its objection after taking discovery, the UAW objects on the ground that Plan, to the extent it contains the MCP, fails to satisfy Section 1129(a)(3) of the Bankruptcy Code. Section 1129(a)(3) provides that a court shall only confirm a plan if it "has been proposed in good faith and not by any means forbidden by law." Mr. DeChiara argues that the MCP is not reasonable and is not fundamentally fair to the UAW-represented employees who made enormous sacrifices for the Debtors' reorganization. In particular, the MCP, he says, violates the "Equivalence of Sacrifice" provision of the UAW-Delphi-GM Memorandum of Understanding, which the Court approved on July 19, 2007. The UAW finds the MCP in its entirety objectionable, in that the total compensation that it will provide to the executives covered by it will make it impossible to conclude that the Plan is fundamentally fair to the UAW-represented employees or that the executives have sacrificed in a manner equivalent to the UAW- represented employees. UAW intends to focus on these provisions on the MCP -- Short-Term Incentive Plan, the Long-Term Incentive Plan and the Chapter 11 Effective Date Executive Payments. These specific provisions will make the executives covered by it whole or substantially whole for any compensation they did not receive because of the Debtors' Chapter 11 filing, Mr. DeChiara relates. He notes that the UAW-represented employees, by contrast, have not been and will not be made whole, but have sacrificed tremendously for the Debtors' reorganization. Mr. DeChiara adds that the incentives and payments under the MCP will leave some or all of the executives above market levels regarding some or all of their compensation. "To the extent some or all of the executives are above market levels as a result of the MCP, the POR is unfair and violates the equivalence-of- sacrifice requirement." UAW filed the Amended Objection to heed to certain demands by the Debtors. At a meet-and-confer held on Dec. 19, 2007, the Debtors told UAW that they would not agree to the discovery requested by the union, unless it (i) amended its preliminary objection to reflect that it was an objection to confirmation of the Plan; and (ii) add allegations on the specific provisions of the MCP to which the UAW was objecting. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 104; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) COMBIMATRIX CORP: Posts $3.4 Million Net Loss in Third Quarter -------------------------------------------------------------- CombiMatrix Corp. reported a net loss of $3.4 million for the third quarter ended Sept. 30, 2007, versus a net loss of $4.3 million in the comparable 2006 period. These results included non-cash gains of $290,000 and $913,000, respectively, related to the adjustment of the company's long-term warrant liability to fair value. Excluding the effects of the warrant liability adjustments, the third quarter net loss improved by $1.5 million, or 29% as compared to the net loss for the comparable 2006 period. Revenues for the third quarter of 2007 were $1.7 million versus $1.3 million for the second quarter of 2007 and $1.8 million in the comparable 2006 period. Third quarter 2007 revenues were comprised of $627,000 in government contact revenues and $1.05 million in CustomArrayTM product, equipment and service revenues, including diagnostic services. Third quarter 2006 revenues were comprised of $725,000 of government contract revenues and $1.12 million of CustomArrayTM product, equipment and service revenues. "For the third quarter of 2007, we achieved revenues of $1.7 million which represents a 26% increase over the second quarter of 2007 and a 9% decrease from the third quarter of 2006. The decrease relative to 2006 was expected as we made a significant strategic shift in our commercial focus early in 2007 from selling R&D products to researchers to selling diagnostic products and services to physicians, patients and reference laboratories. The change in strategy enables us to allocate resources to our diagnostics business, while facilitating reduced operating costs. "Consequently, our net cash burn for the third quarter of 2007 was $2.3 million, which represents a 16% reduction in net cash burn incurred during the second quarter of 2007 and a 39% reduction in net cash burn incurred during the third quarter of 2006," concluded Dr. Kumar. Operating expenses for the third quarter of 2007 were $5.6 million versus $7.2 million in the comparable 2006 period. Operating expenses included research and development and marketing, general and administrative expenses of $1.9 million and $2.2 million, respectively, versus $2.8 million and $2.7 million, respectively, in the comparable 2006 period. Included in these amounts were non-cash stock compensation charges totaling $1.4 million in the third quarter of 2007 versus $588,000 in the comparable 2006 period. Cash, cash equivalents and short-term investments totaled $10.5 million as of Sept. 30, 2007 compared to $14.3 million as of Dec. 31, 2006. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed $38.4 million in total assets, $2.7 million in total liabilities, and $35.7 million in total stockholders' 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?26cc Going Concern Doubt PricewaterhouseCoopers LLP, in Seattle, expressed substantial doubt about CombiMatrix Corporation's ability to continue as a going concern aftr auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. PwC reported that the company has suffered recurring losses from operations and management anticipates that the company will require additional financing in the foreseeable future. About CombiMatrix Corp. Headquartered in Mukilteo, Washington, CombiMatrix Corp. (NasdaqGM: CBMX) -- http://www.combimatrix.com/-- is a diversified b