TCR_Public/080108.mbx          T R O U B L E D   C O M P A N Y   R E P O R T E R

             Tuesday, January 8, 2008, Vol. 12, No. 6

                             Headlines


ARROWHEAD GENERAL: Soft Market Conditions Cue S&P's Neg. Outlook
AQUILA INC: Earns $40.5 Million in Third Quarter
ASPEN INSURANCE: Earns $117.2 Million in Third Quarter
ATHEROGENICS INC: Securities Value Falls Below Nasdaq Criteria
AUTOMOTIVE GLASS: Terminated Deal Cues Moody's to Withdraw Ratings

BOB VOLKSWAGEN: Voluntary Chapter 11 Case Summary
BOSTON SCIENTIFIC: Completes Sale of Stake in Auditory Business
BOWNE & CO: Earns $804,000 in Third Quarter
BUFFETS HOLDINGS: Failure to Pay Interest Cues S&P's Rating Cut
BUFFETS INC: Unpaid Debt Interest Prompts Moody's Rating Cuts

CALUMET SPECIALTY: Completes $267 Million Buyout of Penreco
CASA GRANDE NV: Voluntary Chapter 11 Case Summary
CATHOLIC CHURCH: Davenport to Shoulder $13.6 Million of Settlement
CATHOLIC CHURCH: Spokane Raises $8 Mil. for Sexual Abuse Victims
CATHOLIC CHURCH: Tucson Panel Wants Approval on $3MM Distribution

CLEAR CHANNEL: Gets Consents in Tender Offers for Senior Notes
COLFAX CORP: Registers Common Stock Initial Public Offering
COMPUSA INC: Selling Selected Assets & Stores to Systemax Inc.
COMUNITY LENDING: Case Summary & 20 Largest Unsecured Creditors
CONVERGENCE ETHANOL: Files Voluntary Chapter 7 Petition in Texas

CONVERGENCE ETHANOL: Voluntary Chapter 7 Case Summary
DAYTON SUPERIOR: S&P Puts BB- Rating on Proposed $100 Mil. Loan
DB ISLAMORADA: Files Schedules of Assets and Liabilities
DB ISLAMORADA: Wants Stearns Weaver as Bankruptcy Counsel
DEERFIELD CAPITAL: Posts $23.2 Million Net Loss in Third Quarter

DELPHI CORP: Court Approves Downer and Co. as Financial Advisor
DELPHI CORP: Reaches Settlement with Ad Hoc Trade Committee
DELTA FINANCIAL: U.S. Trustee Appoints Unsecured Creditors' Panel
DELTA FINANCIAL: U.S. Trustee Sets Sec. 341 Meeting for Feb. 5
DELTA FINANCIAL: Files Amended List of Unsecured Creditors

DELTA PETROLEUM: 5 New Employees Get 22,542 Common Share Incentive
E*TRADE ABS: Moody's Cuts and Reviews Low-B Ratings on Two Notes
E*TRADE ABS: Moody's Cuts Ratings on 4 Note Classes to C from Ca
EL PASO: Moody's Retains "Ba3" Rating on Junior Subordinate Bonds
FAIRVIEW PARK: Files Schedules of Assets and Liabilities

GALLERIA CBO: Moody's May Downgrade Ba1 Rating on Two Note Classes
GARY BURIVAL: Files Schedules of Assets and Liabilities
GARY BURIVAL: Brings In Needler and Associates as Counsel
GENERAL MOTORS: Offers Incentive Financing on Selected Vehicles
GIUSEPPE PAESE: Case Summary & 14 Largest Unsecured Creditors

GLOBAL HOMES: Can Now Solicit Votes on Second Amended Plan
GOLDEN STATE: S&P Upgrades BB+ Rating on $127.1 Million Notes
GOODYEAR TIRE: Jamaican Subsidiary Won't Make Dividend Payments
GREEN TREE: Dubitable Repayments Prompt S&P to Cut Ratings to 'D'
FIRST BANCORP: Acquisition Bid for VI Community Bank Wins

FORD MOTOR: To Equip Vehicles With Fuel-Efficient EcoBoost Engine
HANCOCK FABRICS: Court Extends Exclusive Plan-Filing Period
HEARTLAND AUTOMOTIVE: Voluntary Chapter 11 Case Summary
HMSC CORP: Highly Leveraged Capital Prompts S&P to Hold 'B' Rating
HOWARD ENGLISH: Case Summary & 12 Largest Unsecured Creditors

IDAHO HOUSING: S&P Attaches BB+ Ratings on 2008 Revenue Bonds
ING RE UK LTD: Chapter 15 Petition Summary
JOHN ANDERSON: Case Summary & Eight Largest Unsecured Creditors
JOHNSON RUBBER: Section 341(a) Meeting Scheduled for January 11
JOHNSON RUBBER: Wants To Hire Benesch Friendlander as Counsel

JOHNSON RUBBER: Taps Development Specialist as Financial Advisor
JP MORGAN: Moody's Maintains Low-B Ratings on Six Certificates
KATHERINE FUINA: Voluntary Chapter 11 Case Summary
KRISPY KREME: James Morgan Replaces D. Brewster as President & CEO
LANCER FUNDING: Moody's May Cut Ba1 Rating on Class A1S Notes

LEVITT AND SONS: Weinstock Okayed as Affiliates' Special Counsel
LODGENET ENT: Sept. 30 Balance Sheet Upside-Down by $18 Million
MAGUIRE PROPERTIES: S&P Cuts Corporate Credit Rating to B+
MATTRESS GALLERY: Files Schedules of Assets and Liabilities
MCCLATCHY COMPANY: Posts $1.35 Billion Net Loss in Third Quarter

MIRANT CORP: Court Enters Final Decree Closing 21 Chap. 11 Cases
MOSAIC COMPANY: Elects James L. Popowich to Board of Directors
MTI TECHNOLOGY: Asks Court to Set April 4 as Claim Bar Date
MUSICLAND HOLDING: Court Moves Show Cause Hearing to January 24
NATIONAL RV: U.S. Trustee Appoints Seven Member Creditors Panel

NORTHLAKE CDO: Moody's May Cut Ratings Due to Poor Credit Quality
ORCHID STRUCTURED: Poor Credit Quality Cues Moody's Ratings Review
PASSPORT CARPETS: Case Summary & 20 Largest Unsecured Creditors
PROTECTIVE FINANCE: Moody's Holds Ba2 Ratings on 3 Cert. Classes
QT INC: Appellate Court Upholds Ruling on Q-Ray Bracelets

RAMP SERIES 2004: Moody's Junks Ratings on Three Trust Classes
RAMP SERIES 2004-KR1: Moody's Junks Ratings on Two Trust Classes
RAMP SERIES 2004-KR2: Two Trust Classes Gets Moodys's Junk Ratings
RITCHIE RISK: Court Approves Deal on Life Settlement Policies
SATURN VENTURES: Moody's Reviews Ba1 Rating for Possible Cut

SCO GROUP: Wants Until May 11 to File Chapter 11 Plan
SOFA EXPRESS: U.S. Trustee Appoints Seven Member Creditors Panel
SOUTHWESTERN ENERGY: S&P Puts BB+ Rating on Proposed $400MM Notes
SUNDALE LTD: Section 341(a) Creditors Meeting Set for January 17
SYNOVA HEALTHCARE: Obtains Interim OK to Use Cash Collateral

SYNOVA HEALTHCARE: Wants to Hire Fox Rothschild as Bankr. Counsel
SYNOVA HEALTHCARE: Taps Blank Rome as Special Corporate Counsel
TOUSA INC: Missed Interest Payments on $300MM and $185MM Sr. Notes
TOUSA INC: S&P Cuts Rating to "D" on Missed Interest Payments
UNBRIDLED ENERGY: Posts $1.1 Mil. Net Loss in Qtr. Ended Oct. 31

VIKING SYSTEMS: Deflects Bankr. Warning; Executes Recapitalization
WCI COMMUNITIES: Banks Extend Limited Waiver Until January 16
WEEKS STREET: Can Hire Stanley Zlotoff as Bankruptcy Counsel
WT TESORO: BofA Balks at Exclusive Periods Extension
XM SATELLITE: Inks Termination & Release Pact with Starbucks Corp.

XOMA LTD: Earns $21.8 Million in Third Quarter

* Texas Headquarters Moves to "Demystify" Personal Bankruptcy

* S&P Assigns Ratings on 149 Tranches from 43 Cash Flows and CDOs

* Large Companies with Insolvent Balance Sheet


                             *********

ARROWHEAD GENERAL: Soft Market Conditions Cue S&P's Neg. Outlook
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on San
Diego, California-based Arrowhead General Insurance Agency Inc. to
negative from stable.  At the same time, Standard & Poor's
affirmed its 'B' counterparty credit rating on Arrowhead as well
as its 'B' first-lien senior secured bank loan and first-lien
revolving credit facility ratings and its 'CCC+' second-lien
junior secured bank loan rating on Arrowhead's outstanding issues.
Standard & Poor's also affirmed its recovery rating of '3' on
Arrowhead's first-lien secured bank loan and revolving credit
facility and its recovery rating of '6' on Arrowhead's second-lien
junior secured bank loan.

"The change in outlook reflects Standard & Poor's concerns about
the ongoing impact of softer-than-anticipated market conditions on
Arrowhead's financial performance," said Standard & Poor's credit
analyst Michael Gross, "including the company's prospective
ability to meet its bank loan covenants.  The company's bank
covenants become more restrictive during 2008, even as it is
becoming more difficult for the company to maintain its commission
and revenue growth in the face of declining insurance premium
rates."

For the first nine months of 2007, Arrowhead reported a net loss
of $2.9 million.  The company reported total revenue of $85
million for the period, which was relatively unchanged compared
with the same period in 2006.  Because of a leveraged majority
investment in 2006, the company maintains a weaker capital
position, and cash flow is more strained.  The company is expected
to meet all of its bank covenants.

If the company remains challenged to meet Standard & Poor's
original performance expectations for the current rating level,
which include fixed-charge coverage of 2.0x and adjusted EBITDA of
2.4x, the ratings could be lowered by at least one notch in 2008.
If management were to produce meaningful expense efficiencies and
improved and sustainable earnings, the outlook could be revised to
stable.


AQUILA INC: Earns $40.5 Million in Third Quarter
------------------------------------------------
Aquila Inc. reported net income of $40.5 million for the third
quarter ended Sept. 30, 2007, compared to net income of
$115.7 million in 2006.  Repositioning activities in the third
quarter of 2006, including gains on the sale of gas utilities,
were the primary reasons for the decline in current quarter
earnings.  Sales for the quarter were $357.7 million in 2007
versus $316.6 million in 2006.

"We are pleased with our third quarter results and the strong
utility performance, said Richard C. Green, Aquila chairman and
chief executive officer.  "It's evident that Aquila employees
remain dedicated to delivering energy and service to our customers
even while preparing for the transition of our businesses to Great
Plains Energy and Black Hills."

Results for the nine-month period ending Sept. 30, 2007, were net
income of $1.5 million, compared to a 2006 year-to-date net loss
of $40.4 million.  Non-recurring repositioning activities
(including the company's exit from the Elwood tolling agreements
and debt tender offer) that occurred last year and rate relief at
the utility operations this year were the primary reasons for the
improvement in nine month earnings.  Year-to-date sales increased
to $1.10 billion, an increase of $70.0 million over 2006 sales of
$1.03 billion.  The company reported year-to-date EBITDA of
$181.6 million in 2007 compared to loss before interest, taxes,
depreciation and amortization of $132.0 million in 2006.

                     Discontinued Operations

Discontinued Operations includes the company's former Kansas
electric utility operations; its former Michigan, Minnesota, and
Missouri gas utility operations; its former Merchant Services
peaking plants in Illinois; and its former Everest Connections
telecommunications business.  The company's discontinued
operations reported EBITDA of $2.9 million for the quarter in
2007, which was a $137.8 million decrease from $140.7 million
reported in 2006.  The EBITDA decrease was due primarily to the
gains recognized in 2006 on the sale of the gas utility
properties.

                          Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet showed
$2.91 billion in total assets, $1.57 billion in total liabilities,
and $1.34 billion 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?26cf

                         About Aquila Inc.

Headquartered in Kansas City, Missouri, Aquila Inc. --
http://www.aquila.com/-- owns electric power generation and
operates electric and natural gas transmission and distribution
networks serving over 900,000 customers in Colorado, Iowa, Kansas,
Missouri and Nebraska.

                          *     *     *

Aquila Inc. still carries Moody's Investors Service's Ba2
corporate family, Ba3 Senior Unsecured Debt, and Ba3 probability-
of-default ratings.


ASPEN INSURANCE: Earns $117.2 Million in Third Quarter
------------------------------------------------------
Aspen Insurance Holdings Limited reported net income of
$117.2 million on total revenues of $487.5 million for the third
quarter ended Sept. 30, 2007, compared with net income of
$95.0 million on total revenues of $468.6 million in the same
quarter last year.

In the third quarter of 2007, the company generated net investment
income of $72.4 million, compared with $47.3 million in 2006.  The
$25.1 million increase in investment income was due to gains from
the company's investment in funds of hedge funds of $7.9 million,
higher book yields on the company's fixed income portfolio and a
$956.0 million increase in cash and invested assets between
Sept. 30, 2006 and Sept. 30, 2007, as a result of positive
operating cash flow.

In the third quarter of 2007, income before tax was $137.9 million
and is comprised of $65.1 million of underwriting profit,
$72.4 million in net investment income, $7.3 million of net
exchange and investment gains, $4.2 million of interest payable
and $2.7 million of other expenses.

In the third quarter of 2006, income before tax was $118.7 million
and comprised $81.6 million of underwriting profit, $47.3 million
in net investment income, $1.5 million of net exchange and
investment gains, $4.6 million of interest payable and
$7.1 million of other expenses.  The company's lower underwriting
profit in the quarter compared to the prior period was mainly due
to lower gross written premium in the quarter partially offset by
lower losses.

Chris O'Kane, chief executive officer, commented, "These strong
results reflect our ongoing focus on managing, diversifying and
leveraging our underwriting platforms and the excellent
performance of the investment portfolio.  We will continue to
manage the business to ensure that we remain appropriately
positioned for long term profitability and disciplined growth."

For the first nine months ended Sept. 30, 2007, total revenues
increased to $1.51 billion, versus total revenues of $1.39 billion
in the same period last year.  Net income was $353.8 million
compared to net income of $258.6 million in the corresponding nine
months of 2006.

At Sept. 30, 2007, the company's consolidated balance sheet showed
$7.32 billion in total assets, $4.59 billion in total liabilities,
and $2.73 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?26d4

                    About Aspen Insurance

Headquartered in Hamilton, Bermuda, Aspen Insurance Holdings
Limited (NYSE: AHL) -- http://www.aspen.bm/-- provides
reinsurance and insurance coverage to clients in various domestic
and global markets through wholly owned subsidiaries and offices
in Bermuda, France, the United States, the United Kingdom, and
Switzerland.

                          *     *     *

Aspen Insurance Holdings Limited still carries Moody's Investors
Services 'Ba1' Preferred Stock rating which was placed on Dec. 21,
2005.  Outlook is Stable.


ATHEROGENICS INC: Securities Value Falls Below Nasdaq Criteria
--------------------------------------------------------------
AtheroGenics Inc. received a Staff Determination Letter from the
NASDAQ Listing Qualification Department indicating that the
company has not regained compliance with the continued listing
requirements of the NASDAQ Global Market because the market value
of the company's listed securities has fallen below $50 million
for ten consecutive business days, pursuant to Rule 4450(b)(1)(A)
of the NASDAQ Marketplace Rules, and that its securities are,
therefore, subject to delisting from the NASDAQ Global Market.

Pursuant to NASDAQ rules, AtheroGenics will request a hearing
before a NASDAQ Listing Qualifications Panel.  At the hearing, the
company will request continued listing pending completion of its
plan to demonstrate compliance.

The company expects to meet the listing standard when it issues
its 2007 financial statements, which are expected to have total
assets and total revenue in excess of $50 million for the 2007
fiscal year.

The company's request for a hearing will stay the delisting of the
company's common stock, and, as a result, the company's securities
will continue to be listed on the NASDAQ Global Market under the
symbol AGIX until the panel issues its decision following the
hearing.

                     About AtheroGenics Inc.

Based in Alpharetta, Georgia, AtheroGenics Inc. (NASDAQ: AGIX) --
http://www.atherogenics.com/-- is a pharmaceutical company that
focuses on the discovery, development and commercialization of
novel drugs for the treatment of chronic inflammatory diseases,
including heart disease (atherosclerosis), rheumatoid arthritis
and asthma.  AtheroGenics also has preclinical programs in
rheumatoid arthritis and asthma utilizing its proprietary vascular
protectant(R) technology.

                          *     *     *

At Sept. 30, 2007, the company's balance sheet showed total assets
of $119.42 million total liabilities of $300.15 million, resulting
to a total shareholders' deficit of $180.73 million.


AUTOMOTIVE GLASS: Terminated Deal Cues Moody's to Withdraw Ratings
------------------------------------------------------------------
Moody's Investors Service has withdrawn the ratings on Automotive
Glass & Services.  The withdrawal is based on the uncompleted
transaction whereby affiliates of Platinum Equity LLC were to
purchase AG&S for $500 million from PPG Industries Inc.  The rated
senior secured facilities were to be used to partially finance the
transaction along with $156.5 million in equity from Platinum.
Published reports have indicated that PPG Industries Inc. has been
notified that affiliates of Platinum intended to terminate their
purchase agreement after Dec. 31 2007.

Ratings Withdrawn:

  -- Corporate Family Rating, B2
  -- Probability of Default, B2
  -- $75 million senior secured asset based revolving credit
     facility, B1 (LGD3, 37%)
  -- $225 million senior secured first lien term loan, B1
     (LGD3, 37%)
  -- $125 million senior secured second lien term loan, Caa1
     (LGD5, 83%)

Automotive Glass and Services manufactures, fabricates and
delivers glass products and solutions to automotive OEMs directly
or through third party suppliers; manufactures replacement auto
glass and distributes glass and related sundries to the glass
replacement aftermarket and; provides a suite of software and
services that manages the auto glass insurance claim process and
inventory and work flow for glass retailers.


BOB VOLKSWAGEN: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Bob Lewis Volkswagen
        dba Bob Lewis Suzuki
        dba Bob Lewis Hyundai
        951 Foothill Road
        San Jose, CA 95123

Bankruptcy Case No.: 08-50015

Chapter 11 Petition Date: January 2, 2008

Court: Northern District of California (San Jose)

Judge: Roger L. Efremsky

Debtor's Counsel: Charles B. Greene, Esq.
                  84 West Santa Clara Street, Suite 770
                  San Jose, CA 95113
                  Tel: (408) 279-3518

Total Assets: $5,771,771

Total Debts:  $7,013,790

The Debtor does not have any creditors who are not insiders.


BOSTON SCIENTIFIC: Completes Sale of Stake in Auditory Business
---------------------------------------------------------------
Boston Scientific Corporation has completed the sale of
the controlling interests in its auditory business and drug pump
development program to former principals and shareholders of
Advanced Bionics.

As part of a new schedule of consolidated, fixed earnout payments,
Boston Scientific has paid former Advanced Bionics shareholders
$650 million.  A final payment of $500 million will be paid in
March 2009.

The former Advanced Bionics principals and shareholders have paid
Boston Scientific $150 million for the controlling interests in
the auditory business and drug pump development program.

Under the amended merger agreement, Boston Scientific obtains sole
management control of the Pain Management business, including the
emerging indications program.  The Pain Management business
includes spinal cord stimulation technologies, as well as emerging
technologies such as a variety of applications of the bion(R)
microstimulator.

The Pain Management business and emerging indications program will
operate as Boston Scientific Neuromodulation under the leadership
of Michael Onuscheck, currently head of the Pain Management
business.  The business will continue to be headquartered in
Valencia, California.

As part of the transactions, the parties have agreed to dismiss
pending litigation between Boston Scientific and former Advanced
Bionics shareholders.

Boston Scientific acquired Advanced Bionics in 2004.  The sale
coincides with the closing of the amended merger agreement with
Advanced Bionics disclosed on Aug. 9, 2007.

                     About Advanced Bionics

Headquartered in Sylmar, California, Advanced Bionics --
http://www.advancedbionics.com/-- makes the HiResolution Bionic
Ear System, which includes a cochlear implant, sound processor,
and other equipment that together can restore hearing to the deaf.
The company also makes the Precision spinal cord stimulator, which
can block pain signals.

                    About Boston Scientific

Headquartered in Natick, Massachusetts, Boston Scientific
Corporation (NYSE: BSX) -- http://www.bostonscientific.com/--
develops, manufactures and markets medical devices used in a
broad range of interventional medical specialties.  The company
has offices in Argentina, Chile, France, Germany, and Japan,
among others.

                          *     *     *

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its ratings on Boston
Scientific Corp., including the 'BB+' corporate credit rating, and
removed them from CreditWatch, where they were placed with
negative implications Aug. 3, 2007.  The rating outlook is
negative.


BOWNE & CO: Earns $804,000 in Third Quarter
-------------------------------------------
Bowne & Co. Inc. reported net income of $804,000 in the third
quarter ended Sept. 30, 2007, compared with a net loss of
$11.8 million, including loss from discontinued operations, net of
tax of $12.1 million, in the same period last year.

Revenue of $181.4 million in the third quarter of 2007 compared to
$175.1 million in 2006.  Gross margin improved to 34.7% from
33.8%.  Income from continuing operations increased to $884,000
million from $296,000.

For the nine months ended Sept. 30, 2007, revenue was
$654.9 million up from $641.2 million reported in the comparable
2006 period.  Gross margin increased $21.8 million, or 9.7%, and
as a percentage of revenue improved to 37.4% from 34.8% in the
nine months ended Sept. 30, 2006.  Income from continuing
operations increased $14.8 million, or 124%, to $26.8 million from
$11.9 million reported in 2006.  Net income was $27.2 million,
compared with a net loss of $4.0 million, including loss from
discontinued operations, net of tax of $15.9 million, in the same
period last year.

"We continue to be pleased with our overall performance," said
David J. Shea, Bowne chairman, president and chief executive
officer.  "Our margin and profitability improvement is a direct
result of the effective implementation of our strategic
initiatives to grow non-transactional revenue and improve the
efficiency and utilization of our operations.

"We're also excited about the acquisition of Alliance Data Mail
Services, an affiliate of Alliance Data Systems Corporation, which
directly supports our strategy to grow non-transactional revenue
with strategic, bolt-on acquisitions and accelerate our growth in
marketing and business communications services by expanding our
geographic reach and industry verticals, while adding new
technology capabilities."

     Restructuring, Integration and Asset Impairment Charges

Restructuring, integration and asset impairment charges totaled
$2.1 and $12.2 million for the 2007 third quarter and year-to-date
respectively, compared to $1.9 and $12.1 million in the comparable
2006 periods.  Third quarter 2007 charges include $1.4 million
related to the previously disclosed consolidation of the digital
Milwaukee facility into the existing South Bend manufacturing
facility, creating the company's first fully-integrated offset and
digital distributive platform.

Year-to-date 2007 charges include facility exit costs and asset
impairment charges related to the consolidation of leased space at
55 Water Street in New York City, severance, integration and
facility costs related to the integration of the St Ives Financial
business and the aforementioned consolidation of the Milwaukee
facility.

                            Cash Flow

For the nine months ended Sept. 30, 2007, cash and marketable
securities of $82.4 million declined $3.2 million from year-end
2006.  This includes the funding of $40.1 million in stock
repurchases, $12.6 million for acquisitions, $14.3 million in
capital expenditures and a $3.3 million contribution to the
company's pension plan.

The cash expenditures above were funded by an increase in net cash
provided by operations of $72.0 million.  Net cash provided by
operating activities of $57.0 million for the nine months ended
Sept. 30, 2007, compared to net cash used in operating activities
of $15.1 million for the nine months ended Sept. 30, 2006.  This
significant increase is primarily due to improved operating
results, reduced accounts receivable and decreases in income taxes
paid and in the funding of the company's pension plans in 2007 as
compared to 2006.

At Sept. 30, 2007, the company has no borrowings outstanding under
its $150.0 million five-year senior, unsecured revolving credit
facility, maturing in May 2010.

                     Share Repurchase Program

In the 2007 third quarter, the company spent $21.4 million
repurchasing 1.3 million shares of its common stock at an average
price per share of $16.71.  During the nine months ended Sept. 30,
2007, the company repurchased 2.4 million shares of its common
stock for $40.1 million.  From December 2004, the inception of the
company's share repurchase program, through Sept. 30, 2007, Bowne
has spent approximately $185.3 million to repurchase 12.3 million
shares at an average price per share of $15.08.  As of Nov. 5,
2007, $5.8 million of its share repurchase authorization remained.
Total shares outstanding as of Nov. 1, 2007, were 26,691,860.

                          Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet showed
$497.7 million in total assets, $239.9 million in total
liabilities, and $257.8 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?26d1

                      About Bowne & Co. Inc.

Headquartered in New York City, Bowne & Co. Inc. (NYSE: BNE)
-- http://www.bowne.com/ -- provides financial, marketing and
business communications services around the world.  The company
has 3,200 employees and 60 offices worldwide.

                          *     *     *

Bowne & Co. Inc. still carries Moody's 'Ba3' corporate family
rating which was affirmed in January 2007.  The outlook remains
positive.


BUFFETS HOLDINGS: Failure to Pay Interest Cues S&P's Rating Cut
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on Buffets Holdings Inc. and its
subsidiary, Buffets Inc., to 'D' from 'CCC'.  The downgrade is
based on the Eagan, Minnessota-based company's failure to pay its
interest on its 12.5% senior notes due in 2014.  S&P lowered the
rating on these notes to 'D' from 'CC'. The indenture stipulates
that the company has 30 days after the interest was due to make
the payment before an "Event of Default" occurs.  However, given
the company's weak liquidity and operating trends, S&P does not
expect it to make the payment.

"Buffets, the country's largest operator of buffet-style
restaurants, has seen its operating cash flows fall sharply in the
past year," said Standard & Poor's credit analyst Charles Pinson-
Rose, "as a result of declining customer traffic and higher labor
and commodity costs."

Standard & Poor's will continue to monitor the situation and make
updates as additional information becomes available.


BUFFETS INC: Unpaid Debt Interest Prompts Moody's Rating Cuts
-------------------------------------------------------------
Moody's Investors Service lowered Buffets, Inc.'s corporate family
rating to Caa3 from Caa2, senior secured facilities rating to Caa2
from Caa1, and senior unsecured notes to Ca from Caa3.  The rating
outlook remains negative.

The rating action reflects Buffets' further heightened probability
of default primarily stemming from its deteriorating liquidity
given its inability of making interest payment on time and its
extremely tight covenant level.  On Jan. 3, 2008, Buffets
disclosed that it missed interest payment due Jan. 2, 2008 on its
12.5% Senior Notes due Nov. 1, 2014.   The aggregate amount of the
missed interest payment is approximately $18.75 million.

Buffets' liquidity remains weak as a result of negative free cash
flow, limited or no access to its external liquidity facility due
in-part to tight covenants, and limited alternate sources of
liquidity.  Moody's expects that the company's internally
generated cash will likely not be sufficient to fund working
capital, maintenance and growth capital expenditures, and debt
payment over the next twelve month.  Further, Buffets will likely
breach its financial covenants under its credit agreement in the
near term in the absence of a significant improvement in operating
performance and EBITDA, which Moody's views as unlikely at this
time given the challenging operating environment that continues to
persist in the family dining segment of the restaurant industry.

These ratings were affected:

Buffets, Inc.

   -- corporate family rating, downgraded to Caa3 from Caa2

   -- probability of default rating, downgraded to Caa3 from
      Caa2

   -- $40 million revolver maturing in 2011, downgraded to
      Caa2(LGD2, 29%) from Caa1(LGD2, 29%)

   -- $70 million synthetic letter of credit facility maturing
      in 2013, downgraded to Caa2(LGD2, 29%) from Caa1(LGD2,
   29%)

-- $530 million term loan B maturing in 2013, downgraded to
   Caa2(LGD2, 29%) from Caa1(LGD2, 29%)

-- $300 million senior unsecured notes, downgraded to
   Ca(LGD4, 69%) from Caa3(LGD4, 69%)

Buffets, Inc., headquartered in Eagan, Minnesota, 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 626 restaurants in 39
states.  Total reported revenues as of Sept. 19, 2007 were
approximately $1.55 billion.


CALUMET SPECIALTY: Completes $267 Million Buyout of Penreco
-----------------------------------------------------------
Calumet Specialty Products Partners L.P. closed the acquisition of
Penreco on Jan. 3, 2008, for approximately $267 million in cash,
excluding customary post-closing purchase price adjustments.

The acquisition includes plants in Karns City, Pennsylvania and
Dickinson, Texas, well as several long-term supply agreements with
ConocoPhillips Company.

The transaction, which was disclosed on Oct. 22, 2007, was funded
through a portion of the combined proceeds from a public equity
offering and a new term loan agreement.  The company issued
2,800,000 common units at $36.98 on Nov. 14, 2007, for net
proceeds of approximately $100 million, including Calumet's
general partner's proportionate capital contribution.

On Jan. 3, 2008, the Partnership closed a new $435 million senior
secured first lien term loan facility which includes a
$385 million term loan and a $50 million prefunded letter of
credit facility to support crack spread hedging.

The remaining proceeds of the term loan facility and equity
offering were used to refinance existing term loan debt, for
payment of debt financing transaction expenses, and will be used
both to fund the anticipated growth in working capital and
remaining capital expenditures associated with the Shreveport
refinery expansion project well as for general corporate purposes.

Merrill Lynch & Co. and Schnitzius & Vaughan LLC acted as
financial advisors to Calumet in the acquisition.

                         About Penreco

Headquartered in Dickinson, Texas, Penreco --
http://www.penreco.com/-- manufactures and markets highly refined
products and specialty solvents including white mineral oils,
petrolatums, natural petroleum sulfonates, cable-filling
compounds, refrigeration oils, food-grade compressor lubricants
and gelled products.   The company was owned by ConocoPhillips
Company and M.E. Zukerman Specialty Oil Corporation.  Penreco

           About Calumet Specialty Products Partners

Based in Indianapolis, Indiana, Calumet Specialty Products
Partners L.P. -- http://www.calumetspecialty.com/--  (Nasdaq:
CLMT) is an independent producer of high-quality, specialty
hydrocarbon products in North America. Calumet processes crude oil
into customized lubricating oils, solvents, and waxes used in
consumer, industrial, and automotive products. Calumet also
produces fuel products including gasoline, diesel fuel and jet
fuel. Calumet is and has three plants located in northwest
Louisiana.

                         *     *     *

As reported in the Troubled Company Reporter on Nov. 16, 2007,
Standard & Poor's Ratings Services revised its outlook on  Calumet
Specialty Products Partners L.P. to positive from stable, and
affirmed its 'B' corporate credit rating on the company.


CASA GRANDE NV: Voluntary Chapter 11 Case Summary
-------------------------------------------------
Debtor: Casa Grande N.V.
        J.E. Irausquin Boulevard, Suite 250
        Oranjestad, FL 33130

Bankruptcy Case No.: 08-10060

Chapter 11 Petition Date: January 4, 2008

Court: Southern District of Florida (Miami)

Judge: Laurel M. Isicoff

Debtor's Counsel: David C. Profilet, Esq.
                  P.O. Box 402768
                  Miami Beach, FL 33140
                  Tel: (305) 531-8741

Estimated Assets:     $100,000 to $500,000

Estimated Debts: $1 Million to $10 Million

The Debtor did not file a list of its largest unsecured creditors.


CATHOLIC CHURCH: Davenport to Shoulder $13.6 Million of Settlement
------------------------------------------------------------------
The Diocese of Davenport's financial report for the month ended
Nov. 30, 2007, disclosed that the Diocese will shoulder
$13,605,000 of the $37,000,000 settlement amount for sexual abuse
claims.

Counsel for the Diocese, Richard A. Davidson, Esq., at Lane &
Waterman LLP, in Davenport, Iowa, told The Quad-City Times that
Davenport's insurer, Travelers Companies, Inc.,  will contribute
$19,500,000 of the Settlement Amount.  Sale of the Diocese's
headquarters and the St. Vincent Center will also generate around
$3,900,000.

Mr. Davidson declined to disclose how the Diocese will come up
with the $13,600,000 to complete the Settlement Amount, said The
Quad-City Times.

Although the Settlement released the Diocesan schools and
parishes from liability, The Times reported that some of them may
contribute to the Settlement.

The Diocese's plan of reorganization will detail all aspects of
payment of the claims and the sources of payment for the
Settlement Amount.

                     Chapter 11 Plan

Judge Lee M. Jackwig of the U.S. Bankruptcy Court for the Southern
District of Iowa has ordered the Diocese to file its Plan and
disclosure statement by January 31, 2008.

The Court will convene a hearing on March 5, 2008, 1:30 p.m. to
consider approval of the Disclosure Statement.

As reported in the Troubled Company Reporter on Dec. 17, 2007, the
Hon. Lee M. Jackwig of the U.S. Bankruptcy Court for the Southern
District of Iowa ordered the Diocese to file its plan of
reorganization and disclosure statement by Jan. 31, 2008.

The Court will convene a hearing on March 5, 2008, 1:30 p.m. to
consider approval of the Disclosure Statement.  Judge Jackwig
notes that the hearing is a "no testimony hearing."

               About the Diocese of Davenport

The Diocese of Davenport in Iowa filed for chapter 11 protection
(Bankr. S.D. Iowa Case No. 06-02229) on October 10, 2006.
Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the
Davenport Diocese in its restructuring efforts.  Hamid R.
Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang
Zhiel Young Jones & Weintraub LLP represent the Official Committee
of Unsecured Creditors.  In its schedules of assets and
liabilities, the Davenport Diocese reported $4,492,809 in assets
and $1,650,439 in liabilities.

The Debtor was unable to file a Chapter 11 Plan of Reorganization
when its exclusive plan-filing period expired on Nov. 16, 2007.
(Catholic Church Bankruptcy News, Issue No. 112; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


CATHOLIC CHURCH: Spokane Raises $8 Mil. for Sexual Abuse Victims
----------------------------------------------------------------
The parishes in the Catholic community of eastern Washington has
raised $8,000,000 of the $10,000,000 pledged to help pay for the
$48,000,000 settlement of the cases of victims of clergy sexual
abuse asserting claims against the Diocese of Spokane.

The raised funds surpass expectations, The Spokesman-Review
notes.

According to the report, Robert Hailey, lay co-chair of the
Association of Parishes, said the fund-raising campaign of the 82
parishes in 13 counties "could have been very divisive."
However, the fund-raiser brought people together.  "We're
overwhelmed by their generosity," he said.

"We were getting $100, $500 and $1,000 at a time from people at
all parishes," Mr. Hailey added.  "It was truly made possible by
the gifts of many."

The successful fund-raising campaign also enables the independent
trust, which was established to receive the Settlement Amount, to
finish disbursing payments to victims in February 2008, instead
of October 2009, according to the request filed by the Diocese
and the Plan Trustee, Gloria Z. Nagler, Esq., with the U.S.
Bankruptcy Court for the Eastern District of Washington.

"People came together because we needed to do it," Mr. Hailey
said.  "The message we took to the people was this: We must make
the sacrifice for someone else's wrongs.  God's idea of fairness
is not always the same as yours and mine."

                    About The Diocese of Spokane

The Roman Catholic Church of the Diocese of Spokane filed for
chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on
Dec. 6, 2004.  Michael J. Paukert, Esq., at Paine, Hamblen,
Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in
its restructuring efforts.  When the Debtor filed for protection
from its creditors, it listed $11,162,938 in total assets and
$81,364,055 in total debts.

The Diocese of Spokane, the Tort Claimants Committee, the Future
Claims Representative, and the Executive Committee of the
Association of Parishes delivered an Amended Plan of
Reorganization, and a Disclosure Statement describing that Plan to
the Court on Feb. 1, 2007.  The Honorable Patricia C. Williams
approved the disclosure statement on March 8, 2007.  On April 24,
2007, the Court confirmed Spokane's 2nd Amended Joint Plan.  That
plan became effective on May 31, 2007.  (Catholic Church
Bankruptcy News, Issue No. 111; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


CATHOLIC CHURCH: Tucson Panel Wants Approval on $3MM Distribution
-----------------------------------------------------------------
The Official Committee of Tort Claimants of the Diocese of Tucson
asks the U.S. Bankruptcy Court for the District of Arizona to
authorize the trustee of the bankruptcy settlement trust to
distribute $3,000,000 from the funds remaining in the unknown
claims reserve, in accordance with the Weighted Distribution
Ratio, among allowed claims in Tiers 1 to 4, and the California
Tier, whose claims have not already been fully satisfied.

Christopher Graver, Esq., at Stinson Morrison Hecker LLP, in
Phoenix, Arizona, relates that the Court has previously approved
two interim distributions from funds in the Settlement Trust.
Under the Committee's proposed third interim distribution, which
for the first time proposes distributing funds in the Unknown
Claims Reserve, all Tiers will share in the distribution.

In light of the time that has passed and the nature and
disposition of the few unknown tort claims that have been
asserted since the effective date of the Diocese's Third Amended
and Restated Plan of Reorganization, there are ample funds in the
Unknown Claims Reserve to fully protect any Unknown Tort
Claimants once the proposed distribution is made, Mr. Graver
assures the Court.  He notes that according to the Trustee's
report, the balance of the funds in the Settlement Trust is about
$5,007,000, which constitutes the Unknown Claims Reserve.

In the two-plus years since the Unknown Claims Reserve was
established, a total of four Unknown Tort Claimants have asserted
claims, in which two claims were promptly settled for $265,000,
and the third claim has been denied by the Diocese's special
arbitrator, Judge Lina S. Rodriguez, and the fourth remains
pending.  The Committee is currently moving for summary judgment
before Judge Rodriguez that the alleged events of the fourth
claim never took place, Mr. Graver discloses.  He notes that the
Committee is unaware of any other potential Unknown Tort Claim,
asserted or unasserted.

                      Proposed Distribution

The Plan provides that the Unknown Claims Reserve may be reduced
from time to time, after notice and a hearing, and the freed-up
funds distributed to Allowed Claims, which had been assigned to
Tiers 1 to 4 and the California Tier, Mr. Graver relates.  He
says that the Committee was an active participant in the
negotiation of the Unknown Claims Reserve and is highly sensitive
to the need to protect Unknown Claimants with legitimate claims,
if any still exist.  However, given the history of claims against
the Unknown Claims Reserve over the past two years, the Committee
believes that the Unknown Claims Reserve is being maintained at a
level significantly in excess of what is required to protect
Unknown Claimants.

The Committee believes that $1,500,000 to $2,000,000 is a
sufficient Unknown Claims Reserve, and therefore, requests that
the Court reduce the Unknown Claims Reserve by $3,000,000, so
that Tort Claimants assigned to the Tiers will receive further
compensation for their injuries.

The ratio for the distribution is:

Tier 1 - 1: Tier 2 - 2: Calif. Tier - 3.5: Tier 3 - 5: Tier 4 - 7

The Committee notes that, under the Plan and the terms of various
Court-approved settlements, not all Tort Claimants with Allowed
Tort Claims will receive a distribution.  The claims not entitled
to an additional distribution include:

   -- Tort Claimants, who received compromise claims;

   -- holders of relationship Tort Claims;

   -- holders of California Tier Tort Claims, whose recovery in
      California litigation, when added to the amount received
      from the Settlement Trust in the bankruptcy case, exceeds
      what a Tier 3 Tort Claimant has received; and

   -- Tort Claimants, who settled for a certain sum and waived
      any further distributions.

On information and belief, the Committee says that on account of
recoveries in California litigation, only one California Tier
Tort Claimant will receive a distribution.

Pursuant to a certain sharing arrangement under the Plan, 80% of
the $3,000,000 will be distributed to the Tort Claimants, and 20%
will be given to the Diocese for use solely in certain special
projects, the Committee reminds the Court.  The Committee also
suggests that for the proposed distribution, funds should be
reserved for the remaining unresolved claims against the
Settlement Trust.  The Committee relates that two claims against
the Unknown Claims Reserve, Claims Nos. 2 and 3, asserted by
Lawrence Eugene Gomes and Beverly Gomes, have been denied by
Judge Rodriguez.  Another claim, which is currently pending, also
has no merit, but the Committee intends to provide appropriate
protection for that claim and any others, which may be asserted
in the future.

The Committee assures the Court that under its proposal, even
after the distribution of $3,000,000, the Unknown Claims Reserve
will still have ample funds available for future Unknown
Claimants, if any meritorious Unknown Claims still exist, Mr.
Graver notes.

                   Unknown Claims Rep Objects

A. Bates Butler III, the Unknown Claims Representative, relates
that the Unknown Claims Reserve was established to provide a fund
to protect potential holders of tort claims, which had not been
asserted prior to the Diocese's claims bar date.  He notes that
as of the Plan's effective date, there were no Unknown Claims.

In connection with the Plan, Mr. Butler estimated 12 to 15 valid
potential holders of tort claims to be paid from the Unknown
Claims Reserve.  He notes that two years after the Effective
Date, the Committee is seeking the release of $3,000,000, or
approximately three-fifths of the Unknown Claims Reserve.

"This is too much, too soon.  In the last two years, two
claimants have come forward and been paid from the Unknown Claims
Reserve," Mr. Butler tells the Court.  He estimates that possibly
10 to 13 claimants remain, and for those who may have been
minors, the statute of limitations has not yet run.

For this reason, Mr. Butler opposes the distribution at this
time, but supports a distribution of $1,000,000 from the Unknown
Claims Reserve.

                 About the Diocese of Tucson

The Roman Catholic Church of the Diocese of Tucson filed for
chapter 11 protection (Bankr. D. Ariz. Case No. 04-04721) on
September 20, 2004, and delivered a plan of reorganization to the
Court on the same day.  Susan G. Boswell, Esq., Kasey C. Nye,
Esq., at Quarles & Brady Streich Lang LLP, represent the Tucson
Diocese.  Tucson's Third Amended and Restated Plan of
Reorganization became effective on Sept. 20, 2005.  (Catholic
Church Bankruptcy News, Issue No. 111; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


CLEAR CHANNEL: Gets Consents in Tender Offers for Senior Notes
--------------------------------------------------------------
Clear Channel Communications Inc. has received tenders and
consents representing a majority of its outstanding 7.65% Senior
Notes due 2010 (CUSIP No. 184502AK8).

The company also announced that its subsidiary, AMFM Operating
Inc., has received tenders and consents representing a majority
of its outstanding 8% Senior Notes due 2008 (CUSIP No.
158916AL0), all pursuant to the previously announced cash tender
offers and consent solicitations for the CCU Notes and the AMFM
Notes.

As of 5:00 p.m., New York City time, on Dec. 31, 2007, the
company had received tenders and consents in respect of
US$710,729,000 of the outstanding principal amount of CCU Notes
(or approximately 94.76% of the aggregate principal amount), and
AMFM had received tenders and consents in respect of
US$555,582,000 of the outstanding principal amount of AMFM Notes
(or approximately 86.16% of the aggregate principal amount).

As a result of the receipt of the requisite consents for the CCU
Notes, the company expects to enter promptly into a supplemental
indenture incorporating the Clear Channel proposed amendments,
which eliminate substantially all of the restrictive covenants
and the covenants regarding mergers and consolidations contained
in the CCU Notes and in the indenture governing the CCU Notes
applicable to the CCU Notes, eliminate certain events of default,
and modify or eliminate certain other provisions, including
certain provisions relating to defeasance, contained in the CCU
Notes and in the indenture governing the CCU Notes applicable to
the CCU Notes.

As a result of the receipt of the requisite consents for the
AMFM Notes, AMFM expects to enter promptly into a supplemental
indenture incorporating the AMFM proposed amendments, which
eliminate substantially all of the restrictive covenants and the
covenants regarding mergers and consolidations contained in the
AMFM Notes and in the indenture governing the AMFM Notes,
eliminate certain events of default, and modify or eliminate
certain other provisions, including certain provisions relating
to defeasance and providing for guarantees, contained in the
AMFM Notes and in the indenture governing the AMFM Notes.  Each
supplemental indenture will become operative upon acceptance and
payment of the tendered notes by AMFM or Clear Channel, as
applicable.

The company and AMFM have decided to extend the consent payment
deadlines in connection with the tender offers and the consent
solicitations.  The new consent payment deadline for each series
of Notes is 8:00 a.m. EST on Jan. 16, 2007, which is the same
time as each tender offer expiration date.  Each of the consent
payment deadline and the tender offer expiration date is subject
to extension by AMFM, with respect to the AMFM Notes, and Clear
Channel, with respect to the CCU Notes, in their sole
discretion.  As a result of the extension of the consent
payment deadlines, all holders that validly tender their notes
in each tender offer will be eligible to receive the applicable
total consideration offered, including the applicable consent
payment.

In each case, holders whose Notes are accepted for payment in
the tender offers will receive accrued and unpaid interest in
respect of such purchased Notes to, but not including, the
applicable settlement date.

The Clear Channel tender offer and consent solicitation is being
made pursuant to the terms and conditions set forth in the Clear
Channel Offer to Purchase and Consent Solicitation Statement for
the CCU Notes dated Dec. 17, 2007, and the related Letter of
Transmittal and Consent.  The AMFM tender offer and consent
solicitation is being made pursuant to the terms and conditions
set forth in the AMFM Offer to Purchase and Consent Solicitation
Statement for the AMFM Notes dated Dec. 17, 2007, and the
related Letter of Transmittal and Consent.

Clear Channel has retained Citi to act as the lead dealer
manager for the tender offers and lead solicitation agent for
the consent solicitations and Deutsche Bank Securities Inc. and
Morgan Stanley & Co. Incorporated to act as co-dealer managers
for the tender offers and co-solicitation agents for the consent
solicitations.  Global Bondholder Services Corporation is the
Information Agent for the tender offers and the consent
solicitations.  Questions regarding the transaction should
be directed to Citi at (800) 558-3745 (toll-free) or (212) 723-
6106 (collect).  Requests for documentation should be directed
to Global Bondholder Services Corporation at (212)430-3774 (for
banks and brokers only) or (866) 924-2200 (for all others toll-
free).

                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.


COLFAX CORP: Registers Common Stock Initial Public Offering
-----------------------------------------------------------
Colfax Corporation has filed a registration statement on Form S-1
with the Securities and Exchange Commission for a proposed initial
public offering of its common stock.  The number of shares to be
offered and the price range for the offering have not yet been
determined.

Merrill Lynch & Co. is acting as lead book-running manager.  A
copy of the prospectus relating to these securities, when
available, may be obtained by contacting:

     Merrill Lynch, Pierce, Fenner & Smith Incorporated
     Attn: Prospectus Department
     5th Floor, 4 World Financial Center
     New York, NY 10080
     Tel +1 212 449 1000

                    About Colfax Corporation

Headquartered in Richmond, Virginia, Colfax Corporation -
http://www.colfaxcorp.com/-- is a supplier of fluid handling
products, including pumps, fluid handling systems and specialty
valves.  Its products serve a variety of applications in the
commercial marine, oil and gas, power generation, navy and general
industrial markets and are sold worldwide under the Allweiler,
Fairmount, Houttuin, Imo, LSC, Portland Valve, Tushaco, Warren and
Zenith brands.

                          *     *     *

Colfax Corporation continues to carry Moody's Investor Service's
'Ba3' long term corporate family rating and 'Ba1' bank loan debt
rating, which were placed in January 2007.


COMPUSA INC: Selling Selected Assets & Stores to Systemax Inc.
--------------------------------------------------------------
CompUSA Inc. has entered into a definitive agreement with Systemax
Inc., pursuant to which Systemax Inc. will acquire CompUSA's
selected assets and retail stores.

Completion of the transaction is subject to customary closing
conditions and is expected to close at several dates throughout
the first quarter of 2008.

Under the agreement, Systemax will purchase the CompUSA brand,
trademarks and e-commerce business, and many as 16 CompUSA retail
outlets.

"We believe the value of the CompUSA brand remains very high,"
Richard Leeds, chief executive officer of Systemax, said.  "The
company has a long legacy of value pricing, service and customer
loyalty among consumers nationwide.  We view this acquisition as a
strong complementary business to our TigerDirect operation."

According to TigerDirect chief executive officer Gilbert
Fiorentino, CompUSA.com's customer base enhances that of
TigerDirect.com and the CompUSA retail stores will strengthen the
company's planned retail expansion. TigerDirect currently operates
11 retail stores in Florida, Illinois, North Carolina and Ontario,
Canada.

Pending required approvals, up to 16 CompUSA stores in
Florida, Texas and Puerto Rico will be added during the first
quarter of 2008.

"Millions of loyal customers will come to the Systemax and
TigerDirect family of businesses through this acquisition,"
Mr. Fiorentino said.  "We anticipate hiring many experienced
CompUSA employees, preserving hundreds of store management and
sales positions and making us stronger and better in the process."

As the select CompUSA retail stores are acquired, the stores will
be integrated into TigerDirect's existing retail operating
environment.

"We have a terrific opportunity to continue the great CompUSA
brand and establish a new heritage that will extend for
generations to come,"  Mr. Fiorentino added.

Until the agreement is closed, CompUSA's web site
and retail operations will operate under CompUSA.  Once the
acquisition is completed, the new, improved CompUSA.com web site
will operate within Systemax's family of ecommerce web sites.

The new CompUSA.com will feature advanced searching and enhanced
content including photo galleries and videos on thousands of the
most popular PC, TV and consumer electronics items.

The direct costs of the acquisition will depend on the specific
retail store locations that are taken over and are expected to
approximate $30 million.  The indirect costs of the acquisition --
integration and recruiting costs, legal fees, inventory purchases,
and other expenses - will be incremental to the
direct costs.

                      About Systemax Inc.

Systemax Inc. (NYSE:SYX) - http://www.systemax.com/-- sells
personal computers, computer supplies, consumer electronics and
industrial products through a system of branded e-commerce web
sites, direct mail catalogs, relationship marketers and retail
stores in North America and Europe.  It also manufacturers and
sells personal computers under the Systemax and Ultra brands and
develops and markets ProfitCenter Software, a web-based, on-demand
application for multi-channel direct marketing companies.

TigerDirect - www.tigerdirect.com/ --  is a subsidiary of
Systemax.  The company serves the needs of personal and business
computer users, selling consumer electronics, computers, digital
media technology and peripherals via retail stores, catalog and
Internet channels.

                       About CompUSA Inc.

Headquartered in Dallas, Texas, CompUSA Inc. is a retailer and
reseller of personal computers and related products and services,
principally through its Computer Superstores located throughout
the United States. Although retail sales through its Computer
Superstores are the largest component of the company's business,
its stores also fulfill the principal marketing, product, and
service functions of the company's other businesses, including
direct sales to corporate, government, and education customers and
training and technical services.

                         *     *     *

As reported in the Troubled Company Reporter on Dec. 11, 2007,
CompUSA was acquired by Gordon Brothers Group LLC and Gordon
Brothers will initiate an orderly wind-down of CompUSA's retail
store operations.

The restructuring firm was engaged in discussions with various
parties regarding the sale of certain assets.  CompUSA's 103
retail stores were opened and staffed during the 2008 holiday
season, and offered consumers bargains on computer and
electronic products as part of store closing sales.


COMUNITY LENDING: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Lead Debtor: ComUnity Lending, Inc.
             5671 Santa Teresa Boulevard, Suite 201
             San Jose, CA 95123

Bankruptcy Case No.: 08-50030

Debtor-affiliates filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        L.E.S. Liquidation, Inc.                   08-50031

Type of Business: Founded in 1980, The Debtor is a mortgage lender
                  approved by the U.S. Department of Housing and
                  Urban Development.  It offers mortgage programs
                  that will lend up to $1,500,000.  See
                  http://www.comunitylending.com

Chapter 11 Petition Date: January 4, 2008

Court: Northern District of California (San Jose)

Judge: Marilyn Morgan

Debtors' Counsel: John Walshe Murray, Esq.
                  19400 Stevens Creek Boulevard, Suite 200
                  Cupertino, CA 95014-2548
                  Tel: (650) 852-9000

ComUnity Lending, Inc's Financial Condition:

Estimated Assets: $10 to $50 Million

Estimated Debts:  $10 to $50 Million

A. ComUnity Lending, Inc's 20 Largest Unsecured Creditors:

   Entity                      Claim Amount
   ------                      ------------
Bear Stearns                   $6,311,790
Attention:
Kristopher Armstrong
2780 Lake Vista Drive
Lewisville, TX 75067

Indy Mac                       $5,459,705
Attention: Paulette Mendoza
888 East Walnut Street
Pasadena, CA 91101

A.L.S.                         $4,318,010
Attention: Patricia Walter
2530 South Parker
Denver, CO 80014

Greenwich                      $2,750,203
Attention: Mike Pillari
600 Steamboat Road
Greenwich, CT 06830

Countrywide                    $2,506,211
Attention: Lydia Devries &
Joseph Paganelli
8521 Fallbrook Avenue, MS
WH-51M
West Hills, CA 91304

Goldman Sachs                  $1,900,661
Attention: Victoria Clement
85 Broad Street, 27th Floor
New York, NY 10080

Merrill Lynch                  $1,548,405
Attention: Cynthia Smiros &
Molly McHugh
4 World Financial Center
New York, NY 10080

Washington Mutual              $1,521,920
Attention: Kim Cottrell &
Michael Coyne
623 Fifth Avenue, 17th Floor
4438WCNY
New York, NY 10022

Wells Fargo                    $1,395,717
Attention: Shana Larkin
700 Larkspur Landing,
Suite 199
Larkspur, CA 94030

Winter Group                   $1,278,487
45 Rockefeller Plaza,
Suite 420
New York, NY 10011

G.M.A.C.-R.F.C.                $1,028,964
Megan-Gallagher
One Meridian Crossings,
Suite 100
Minneapolis, MN 55423

World Financial Group          $1,000,000
Attention: Jerry Vahl,
Executive Vice-President
11315 Johns Creek Parkway
Duluth, GA 30097-7429

Morgan Stanley                 $917,500
Attention: Karen Ferrante &
Brian Wornow
5002 T-Rex Avenue, Suite 300
Boca Raton, FL 33431

E.M.C. Mortgage Corp.          $548,250
800 State Highway
121 Bypass
Lewisville, TX 75067-4180

Gevity H.R., Inc.              $471,792
Edwin E. Hightower, Jr.
Vice-President &
General Counsel
9000 Town Center Parkway
Bradenton, FL 34202

Chris Hake                     $401,917
4974 St. Andrews Drive
Stockton, CA 95219

Joyce Freeman                  $389,219
475 Mello Lane
Santa Cruz, CA 95062

Credit Suisse                  $296,559
Attention: Kelvin Fynaardt
11 Madison Avenue, 4th Floor
New York, NY 10010-3629

Deutsche Bank Structured       $240,819
Products, Inc.

John Nelson                    $227,668

B. LES Liquidation, Inc's Threee Largest Unsecured Creditors:

   Entity                      Claim Amount
   ------                      ------------
Gevity H.R., Inc.              $471,792
Attention:
Edwin E. Hightower, Jr.
Vice-President &
General Counsel
900 Town Center Parkway
Bradenton, FL 34202

Optimal Blue                   $14,875
5601 Democracy Drive,
Suite 150
Plano, TX 75024

Mortgage Resource Center, Inc. $7,400
2975 Lone Oak Drive,
Suite 140
Eagan, MN 55121


CONVERGENCE ETHANOL: Files Voluntary Chapter 7 Petition in Texas
----------------------------------------------------------------
Convergence Ethanol Inc., on Dec. 21, 2007, filed a voluntary
petition under Chapter 7 of the Bankruptcy Code with the U.S.
Bankruptcy Court for the Southern District of Texas.

The company had previously stated in its Form 10-QSB/A for the
Quarter Ended June 30, 2007, that its working capital was not
sufficient to satisfy its immediate working capital requirements
and that if it was unable to raise the required funds, its ability
to finance continued operations will be materially adversely
affected.

                          Last Hope

The company's related that its last real hope of meeting its
working capital requirements was by borrowing additional funds
from its existing lender, GCA Strategic Investment Fund Limited.
However, negotiations broke down and GCA elected to not make
additional loans to fund the company's operations.

Without GCA's financial assistance and their full cooperation, the
company's ability to obtain funding from other independent sources
evaporated.

The company said that the filing was based on the Board of
Directors' belief that the only and best option for the company
was to liquidate its assets and distribute any realized proceeds
to creditors.  The company further said that its assets may have
insufficient value upon liquidation to repay creditors in full
doesn't expect any distribution to shareholders.

                       Resignations

The company discloses that the resignations of Mr. James A. Latty
as President, CEO and Chairman of the Board of Directors and Ms.
Miriam Wolverton as Senior Corporate Controller were submitted
effective as of Dec. 14, 2007 and Dec. 15, 2007, respectively.

The resignations of Mr. Richard W. York, CFO and Mr. Steven
Newsom, Director were submitted effective as of Dec. 31, 2007.

                    Hurdles Leading to Demise

In a regulatory filing on Form 8-K with the U.S. Securities and
Exchange Commission, the company's directors that the factors that
lead to the company's demise were, among others:


    * The hostile corporate take-over attempts, incompetence of
      and harassment by former Director and Officer Mr. Daniel K.
      Moscaritolo.  These activities, the company said, along with
      those of his associates resulted in huge and continuing
      legal expenses and fatally damaged the company's fund
      raising ability as well as diluted its efforts to conduct
      business;

    * the decision of the company's major lender to foreclose the
      loan secured by the company's assets in Texas.  Although
      there were no scheduled payments overdue, the company
      disclosed that the loan agreement stated that unless the
      company had registered its stock underlying the convertible
      debt within an "unrealistically short time period" that
      penalties would be imposed.  The lender foreclosed because
      those penalties could not be paid and the action effectively
      eliminated the company's ability to attract funding to meet
      its short-term working capital requirements;

    * the problem created by the company's factoring lender.  The
      company related that in an attempt to improve the cash flow
      at its Texas companies, an agreement was entered into with a
      factoring lender.  Unfortunately, the factoring lender
      breached the agreement and began withholding payments to the
      company and collecting payments to which it was not
      entitled.  According to the company, this effectively cut
      off what little income the company could have received and
      the factoring lender's claims made it practically impossible
      to raise any capital to address the financial needs of the
      company;

    * its inability to overcome the the combined effects of the
      mid 2007 credit market melt-down, particularly sub-prime
      loans, along with the company's otherwise distressed
      situation which thwarted the its recent efforts to raise
      debt or equity financing to continue operations; and

    * the retainer agreement entered into by Mr. Moscaritolo with
      Mr. Louis Fillion, Esq., an attorney in Canada.  Mr. Fillion
      was to represent the company's interest in Canada related to
      the construction of a  biomass to ethanol plant.  The
      company however had a strained relationship with  Mr. Claude
      Villnueve, the president of its minority partner in the
      project.

      As a result of the contract, the company said, Mr. Fillion
      claimed the Corporation owed him approximately $34,000.  In
      May 2007, Mr. Fillion placed a lien on the property that was
      to be the site of the ethanol plant.  However, Mr. Fillion
      failed to contact anyone at the company to give notice of
      the lien and only gave notice to Mr. Villnueve.  Mr.
      Villnueve failed to inform anyone at the company.  When the
      company received notice that the property was going to be
      sold to satisfy the lien, it lacked the funds to pay the
      amount claimed under the lien.  Thus the property was
      scheduled to be sold on Dec. 25, 2007.

                    Ceased Business Activity

In connection with the filings, the company disclosed that along
with all of its subsidiaries, they have ceased all business
activity and operations.  Further, the company will also cease to
file reports under the Securities Exchange Act of 1934.

                    About Convergence Ethanol

Convergence Ethanol, Inc., fka Mems USA, Inc. (CETH.OB) develops
and manufactures advanced engineering products, systems and plants
for the energy, oil and natural gas industries.  It operates
through its wholly owned subsidiaries California MEMS USA, Inc.,
Bott Equipment Company Inc. and Gulfgate Equipment Inc.

California MEMS is an engineering and design firm that develops
and sells instrumentation, blending skids and Intelligent
Filtration Systems.  Gulfgate produces particulate filtration
equipment utilized in the oil and power industries.  Bott is a
stocking distributor for premier lines of industrial Pumps,
compressors, flow meters, valves and instrumentation.


CONVERGENCE ETHANOL: Voluntary Chapter 7 Case Summary
-----------------------------------------------------
Debtor: Convergence Ethanol, Inc.
        fka Mems USA, Inc.
        c/o Margaret M. McClure, Esq.
        909 Fannin, Suite 3810
        Houston, TX 77010

Bankruptcy Case No.: 07-38717

Debtor affiliate filing separate chapter 7 petition on Dec. 21,
2007:

      Entity                                     Case No.
      ------                                     --------
      California MEMS USA, Inc.                  07-38718

Debtor affiliate filing separate chapter 7 petition on Nov. 6,
2007:


      Entity                                     Case No.
      ------                                     --------
      Bott Equipment Company Inc.                07-37767

Type of Business: The Debtor develops and manufactures advanced
                  engineering products, systems and plants for the
                  energy, oil and natural gas industries.  It
                  operates through its wholly owned subsidiaries
                  California MEMS USA, Inc., Bott Equipment
                  Company Inc. and Gulfgate Equipment Inc.

                  California MEMS is an engineering and design
                  firm that develops and sells instrumentation,
                  blending skids and Intelligent Filtration
                  Systems.

                  Gulfgate produces particulate filtration
                  equipment utilized in the oil and power
                  industries.  On Dec. 18, 2007, GCA Strategic
                  Investment Fund Limited and other creditors of
                  Gulfgate Equipment, filed an involuntary
                  petition for relief under Chapter 7 against .
                  Gulfgate (Bankr. S.D. Tex. Case No. 07-38657).

                  Bott is a stocking distributor for premier lines
                  of industrial Pumps, compressors, flow meters,
                  valves and instrumentation.

                  Lowell T. Cage has been appointed as Chapter 7
                  trustee in the Debtor and its debtor-affiliates'
                  respective cases.

Chapter 7 Petition Date: December 21, 2007

Court: Southern District of Texas (Houston)

Judge: Jeff Bohm

Debtor's Counsel: Margaret Maxwell McClure, Esq.
                  Law Office of  Margaret M. McClure
                  909 Fannin, Suite 3810
                  Houston, TX 77010
                  Tel: (713) 659-1333
                  Fax: (713)658-0334

Total Assets: $995,590

Total Debts:  $4,159,455


DAYTON SUPERIOR: S&P Puts BB- Rating on Proposed $100 Mil. Loan
---------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' bank loan
rating to the proposed $100 million senior secured first-lien term
loan B of Dayton Superior Corp.  The senior secured rating is two
notches above the 'B' corporate credit rating.  S&P also assigned
a '1' recovery rating, indicating the expectation of very high
(90%-100%) recovery in the event of a payment default.  The rating
is based on preliminary terms and conditions.  S&P affirmed its
existing ratings for Dayton Superior.  The outlook is stable.

Proceeds from the proposed term loan, in addition to $65 million
in borrowings under a new, unrated $150 million revolving credit
facility, will be used to refinance the company's existing
$165 million second-lien notes due September 2008.

Dayton Superior, based in Dayton, Ohio, is a leading manufacturer
and provider of concrete construction products and forming and
shoring equipment.

"We expect the company to continue to benefit from good operating
trends in its commercial and infrastructure end markets.  In
addition, its proposed refinancing will modestly reduce interest
expense and somewhat enhance its overall liquidity position," said
Standard & Poor's credit analyst Sean
McWhorter.  "We could revise the outlook to negative or lower the
ratings if demand in the company's commercial end markets
deteriorates meaningfully.  We could also take one of those
actions if raw material costs escalate appreciably and the company
cannot pass through those increases to customers,
resulting in significant margin compression.  We could revise the
outlook to positive if the company's operating performance
significantly improves, resulting in lower debt balances and a
strengthened financial profile, although this seems less likely in
the near term."


DB ISLAMORADA: Files Schedules of Assets and Liabilities
--------------------------------------------------------
DB Islamorada LLC delivered to the U.S. Bankruptcy Court for the
Southern District of Florida its schedules of assets and debts
disclosing:

   Name of Schedule                   Assets      Liabilities
   ----------------                 ----------    -----------
   A. Real Property                $25,000,000
   B. Personal Property              3,236,009
   C. Property Claimed
      as Exempt
   D. Creditors Holding                           $25,665,627
      Secured Claims
   E. Creditors Holding                                     -
      Unsecured Priority
      Claims
   F. Creditors Holding                             1,880,433
      Unsecured Nonpriority
      Claims
                                    ----------    -----------
      TOTAL                        $28,236,009    $27,546,060

Miami, Florida-based DB Islamorada LLC filed for chapter 11
bankruptcy on Nov. 29, 2007 (Bankr. S.D. Fla. Case No. 07-20537).


DB ISLAMORADA: Wants Stearns Weaver as Bankruptcy Counsel
---------------------------------------------------------
DB Islamorada LLC asks the U.S. Bankruptcy Court for the Southern
District of Florida for permission to employ Stearns Weaver Miller
Weissler Alhadeff & Sitterson PA as bankruptcy counsel, nunc pro
tunc to Nov. 29, 2007.

Stearns Weaver is expected to:

   a. advise the Debtor with respect to its responsibilities in
      complying with the United States Trustee's Guidelines and
      Reporting Requirements and with the rules of the Court;

   b. prepare motions, pleadings, orders, applications, adversary
      proceedings, and other legal documents necessary in the
      administration of the case;

   c. protect the interests of the Debtor in all matters coming
      before the Court; and

   d. represent the Debtor in negotiation with creditors and in
      the preparation of a plan.

Stearns Weaver will apply for compensation and reimbursement of
costs, pursuant to Sections 330 and 331 of the U.S. Bankruptcy
Code.

To the best of the Debtor's knowledge, the firm does not have any
connection with its creditors or other parties-in-interest or
their respective attorneys.

The firm can be reached at:

    Patricia A. Redmond, Esq.
    Stearns Weaver Miller Weissler Alhadeff & Sitterson PA
    Museum Tower, Suite 2200, 150 West Flagler Street
    Miami, FL 33130
    Tel: (305) 789-3200
    Fax: (305) 789-3395
    http://www.swmwas.com/

Miami, Florida-based DB Islamorada LLC filed for chapter 11
bankruptcy on Nov. 29, 2007 (Bankr. S.D. Fla. Case No. 07-20537).


DEERFIELD CAPITAL: Posts $23.2 Million Net Loss in Third Quarter
----------------------------------------------------------------
Deerfield Triarc Capital Corp. reported a net loss of
$23.2 million for the third quarter ended Sept. 30, 2007, compared
with net income of $19.6 million for the third quarter of 2006.
The decrease reflected net losses in the derivatives trading
portfolio, realized net losses on sale and unrealized losses on
impairment of available-for-sale securities, and lower valuations
in the loans held-for-sale portfolio.  Providing a partial offset
were higher net interest income and better results in the trading
securities portfolio.

Net interest income of $26.8 million increased 36.1% over the net
interest income of $19.7 million in the prior year quarter.  The
improvement was largely driven by enhanced returns in the RMBS
portfolio and a better mix of higher yielding alternative
investments.

Expenses totaled $5.1 million, down by $1.1 million, or 18.2%,
from the prior year.  The decrease was primarily due to no
incentive fees paid in the current quarter.

Other income and gain (loss) was a net loss of $45.3 million in
the quarter, compared with a net gain of $6.3 million in the prior
year quarter.  The loss primarily reflected the following:

  -- Non-agency AAA RMBS AFS securities totaling $485 million were
     sold at a net loss of $7.2 million for liquidity enhancement
     purposes.

  -- Other-than-temporary impairment charges on AFS securities
     totaled $16.4 million during the third quarter.

  -- Wider credit spreads drove a net loss of $7.8 million on
     corporate bank loans held for sale in the Market Square CLO.

  -- The undesignated pay fixed interest rate swap portfolio, used
     as an economic hedge of the RMBS book, generated losses
     totaling $15.2 million due to falling swap rates during the
     quarter.

  -- Lower LIBOR rates resulted in losses in sold interest rate
     floors totaling $2.3 million.

  -- Total return swap activity produced losses totaling
     $2.2 million due to wider credit spreads.

The following gains provided a favorable offset:

  -- Lower overall interest rates resulted in a net gain of
     $5.6 million in the trading securities portfolio.

  -- Agency RMBS AFS securities totaling $391 million were sold to
     generate liquidity resulting in a net gain of $1.1 million.

Jonathan Trutter, chief executive officer, said, "Like many other
financial companies, our third quarter results were significantly
impacted by the recent disruption in the credit markets.  The
decision to enhance our liquidity during this period resulted in
an increase in realized losses during the quarter.  Had we not
sold certain securities during the third quarter to increase
operating liquidity, it is unclear whether the ultimate
disposition of these investments would have resulted in losses for
the company.

"In addition, most of our investment portfolios had lower
valuations at quarter-end, creating temporary impairment charges
to our book value.  We believe that many of these charges will
reverse over time as markets recover.  Despite the market turmoil,
our taxable income remained strong and we were able to maintain
the dividend payout rate at an attractive level in line with the
past three quarters."

Total invested assets were down 4.3% to $8.4 billion as of
Sept. 30, 2007 compared to the end of 2006.  The decrease
reflected the sale of certain investments to generate liquidity as
credit markets tightened and repurchase agreement margin
requirements increased above historically observed levels.

                           Liquidity

The company's short-term liquidity needs are met primarily with
proceeds from unrestricted cash and cash equivalents and
repurchase agreement borrowings.  Unencumbered RMBS and
unrestricted cash and cash equivalents as of Sept. 30, 2007,
totaled $175.1 million compared to $224.6 million as of the end of
the second quarter.

Longer term funding is in the form of trust preferred securities
and CDO borrowings.  Borrowings under the company's warehouse
funding agreement totaled $76.9 million as of Sept. 30, 2007.

Commenting on liquidity, Mr. Trutter noted, "Although the
environment for repurchase agreement funding of our high quality
mortgage collateral has improved substantially since early August,
we continue to be focused on liquidity and believe our current
position is sufficient to sustain the operation of our core
mortgage financing activities.  Our alternative strategies
continue to rely primarily on term funding structures which
greatly reduces our exposure to short term credit disruptions."

                          Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet showed
$8.75 billion in total assets, $8.19 billion in total liabilities,
and $550.7 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?26d5

                      About Deerfield Triarc

Based in Rosemont, Illinois, Deerfield Triarc Capital Corp. (NYSE:
DFR) is a diversified financial company formed in 2004 to invest
in real estate-related securities and various other asset classes.
The company has elected and intends to continue to qualify to be
taxed as a real estate investment trust, or REIT, for federal
income tax purposes.  The objective is to provide attractive
returns to investors through a combination of dividends and
capital appreciation, which the company intends to achieve by
opportunistically investing in financial assets and to construct
an investment portfolio appropriately leveraged to seek attractive
risk-adjusted returns.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 29, 2007,
Moody's Investors Service downgraded Deerfield Triarc Capital
Corp's corporate family rating to Ba3, from Ba2.


DELPHI CORP: Court Approves Downer and Co. as Financial Advisor
---------------------------------------------------------------
Delphi Corp. and its debtor-affiliates obtained permission from
the U.S. Bankruptcy Court for the Southern District of New York to
employ independent middle market advisory firm Downer & Company
LLC as their financial advisor and investment banker with regard
to the divestiture or other strategic alternatives relating to
their power products business.  The Debtors propose to hire Downer
& Company nunc pro tunc to Aug. 27, 2007.

The Debtors' Power Products Business involve the engineering,
manufacturing, or selling of power sliding door systems, power
liftgate systems, power deck lid systems, internal cinching
latches, advanced development power cinching latches, and
advanced development power cinching strikers.

Pursuant to the parties' Oct. 26, 2007 letter agreement, Downer &
Company is expected to:

   -- assist in the review and analysis of the assets and the
      operating and financial strategies of the Power Products
      Business;

   -- assist in the definition of objectives related to the value
      and terms of divestiture;

   -- assist in the market examination for potential purchasers
      and identification of a universe of parties who should be
      contacted in relation to the proposed transaction;

   -- at the Debtors' direction, contact a priority list of
      parties agreed in common with the Debtors as part of a pre-
      marketing strategy;

   -- assist in the collection and analysis of information
      relevant to the market and the proposed transaction;

   -- prepare and review with the Debtors the valuation of the
      Power Products Business;

   -- define procedures concerning the divestiture process at its
      different stages, and implementing them with the potential
      purchasers at the Debtors' direction and on its behalf;

   -- assist in the organization and coordination of datarooms,
      management presentations, and due diligence sessions;

   -- review, analyze, and advise on the value and terms of the
      offers received and on appropriate negotiating strategies
      in relation to the various potential purchasers in
      connection with the proposed transaction or other
      transactions;

   -- assist in the negotiation of binding contractual
      documentation in conjunction with the Debtors' legal
      advisors; and

   -- render other financial advisory and investment banking
      services as may be reasonably requested by the Debtors in
      connection with the disposition of the Power Products
      Business.

The services to be provided by Downer & Company will not
duplicate the services of the Debtors' other professionals,
Delphi Corp. vice president and chief restructuring officer John
D. Sheehan assured the Court.

In exchange for Downer & Company's services, the Debtors will pay
the firm non-refundable work fees totaling $100,000:

   * $25,000 upon approval of the Employment Application;

   * $25,000 upon completion and delivery of a pre-marketing
     report;

   * $25,000 upon receipt of the first round offers; and

   * $25,000 upon receipt of the final offers in the form of a
     marked-up term sheet.

The Debtors will also pay Downer & Company a Transaction Fee
equal to $600,000 plus:

   * 2.5% of the Transaction Value, as defined in the Engagement
     Letter, between $35,000,000 and $45,000,000; and

   * 3.25% of the Transaction Value in excess of $45,000,000.

The Transaction Fee may be reduced by the total amount of work
fees paid if certain conditions are met as defined in the
Engagement Letter, Mr. Sheehan related.

Further more, the Debtors will reimburse Downer & Company for all
reasonable out-of-pocket expenses incurred in connection with the
performance of its duties under the Engagement Letter, including
transportation, telephone, lodging, meals, research, postage,
courier services, and interest fees.

Downer & Company's services are necessary to enable the Debtors
to maximize the value of their estates, Mr. Sheehan told the
Court.  The Debtors aver that Downer is well-qualified and able
to represent them in a cost-effective, efficient, and timely
manner.

Arthur G. Gottlieb, a managing director at Downer & Company, LLC,
assured the Honorable Robert Drain that Downer & Company has no
connection with, and holds no interests adverse to, the Debtors,
their creditors, or any other party-in-interest in the matters for
which it is proposed to be retained.  Downer & Company, Mr.
Gottlieb adds, is a "disinterested person," as that term is
defined in Section 101(14) of the Bankruptcy Code.

                       About Delphi Corp.

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. 103; Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000)


DELPHI CORP: Reaches Settlement with Ad Hoc Trade Committee
-----------------------------------------------------------
The Ad Hoc Trade Committee's withdrawal of its objection to the
Dec. 3, 2007 Amendment to the New Equity and Purchase Agreement
between Delphi Corp., its debtor-affiliates and the Plan
Investors, led by Appaloosa Management L.P., is part of a
settlement reached between the Debtors and the Trade Committee.

In addition to the EPCA, the parties agreed to resolve their
disputes with respect to the Debtors' Joint Plan of
Reorganization.

"This is in full settlement of any and all objections of the ad
hoc trade committee to the disclosure and plan confirmation
process, including without limitation, the disclosure statement,
the proposed investment agreement amendment and the plan of
reorganization, including plan confirmation matters," John
Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, in Chicago, Illinois, said at the Dec. 6, 2007 hearing.

The parties also agreed that:

   -- they will use commercially reasonable efforts to reconcile,
      if agreed, allow on or before the confirmation date trade
      claims held by members of the Ad Hoc Trade Committee; and

   -- the Debtors will reimburse the Trade Committee up to
      $750,000 for reasonable and documented professional fees
      and expenses, provided, however, the Committee will file
      with the Court an application for the reimbursement.

Mr. Butler, however, said that the Trade Committee may still
object to the Plan if the Debtors propose modifications that have
a material adverse affect on the treatment of general unsecured
creditors.

The Debtors told the Court that they resolved majority of the
objections to the Amendment to the Investment Agreement.  In to
the Trade Committee, representatives of the Securities Lead
Plaintiffs, IUE-CWA, and the Official Committee of the Equity
Security Holders confirmed that their objections have been
resolved.  The Equity Committee agreed to withdraw its objections
following clarification on, among other things, the preservation
of its legal, equitable, and contractual rights in connection
with the Investment Agreement.

"In light of the consideration that's being offered to the Equity
Committee under the Plan, we're in support of the Plan and the
third-party release therein," said Debra Torres, Esq. at  Fried
Frank Harris Shriver & Jacobson, LLP, in New York, on behalf of
the Equity Committee.

                       About Delphi Corp.

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)


DELTA FINANCIAL: U.S. Trustee Appoints Unsecured Creditors' Panel
-----------------------------------------------------------------
The U.S. Trustee for Region 3, Kelly Beaudin Stapleton, appointed
five members to the Official Committee of Unsecured Creditors in
the Chapter 11 cases of Delta Financial Corporation and its
debtor-subsidiaries.

The Creditors Committee members are:

   1. Mortgage Information Services, Inc.
      Attn: Barton J. Craig
      4877 Galaxy Pkwy., Suite I, Cleveland, OH 44128
      Phone: 216-514-1330
      Fax: 216-839-2074

   2. Delta Funding Residual Exchange Company LLC
      Attn: James E. Morrison
      236 East 47 th Street, No. 32D, New York, NY 10017
      Phone: 646-918-6826
      Fax (646) 918-6826

   3. DB Structured Products, Inc.
      Attn: Silvia Spear/Vincent D'Amore
      60 Wall Street, New York, NY 10005
      Phone: 212-250-6146
      Fax: 212-797-5695

   4. J2 Global Communications, Inc.
      Attn: Alisa Moskowitz.
      6922 Hollywood Blvd., Suite 500, Los Angeles, CA 90028
      Phone: 323-860-9396
      Fax: 323-693-5335

   5. AT&T Corp.
      Attn: James Walter Grudus
      One AT&T W ay, Room 3A218, Bedminster, NJ 07921
      Phone: 908-234-3318
      Fax: 832-213-0157

Pursuant to Section 1103 of the Bankruptcy Code, the Creditors
Committee may:

    -- consult with the Debtors concerning the administration of
       the bankruptcy cases;

    -- investigate the acts, conduct, assets, liabilities, and
       financial condition of the Debtors, the operation of the
       Debtors' business and the desirability of the continuance
       of the business, and any other matter relevant to the case
       or to the formulation of a plan of reorganization for the
       Debtors;

    -- participate in the formulation of a plan, advise its
       constituents regarding the Committee's determinations as
       to any plan formulated, and collect and file with the
       Court acceptances or rejections of the plan;

    -- request the appointment of a trustee or examiner; and

    -- perform other services as are in the interest of its
       constituents.

The Creditors Committee may retain counsel, accountants, or other
agents, to represent or perform services for the group.

                      About Delta Financial

Founded in 1982, Delta Financial Corporation (NASDAQ: DFC) --
http://www.deltafinancial.com/-- is a Woodbury, New York-based
specialty consumer finance company that originates, securitizes
and sells non-conforming mortgage loans.

The company filed a chapter 11 petition on December 17, 2007
(Bankr. D. Del. Lead Case No. 07-11880).  On the same day, three
affiliates filed separate chapter 11 petitions -- Delta Funding
Corp., Renaissance Mortgage Acceptance Corp., and Renaissance
R.E.I.T. Investment Corp. -- (Bankr. D. Del. Case Nos. 07-11881
to 07-11883).

The Debtors selected David B. Stratton, Esq. and James C.
Carignan, Esq. at Pepper Hamilton LLP as their counsel.  The
Debtors' amended consolidated quarterly financial condition as of
Sept. 30, 2007, showed $7,223,528,000 in total assets and
$7,108,232,000 in total liabilities.  The Debtors' petition listed
D.B. Structured Products Inc. as their largest unsecured creditor
holding a $19,500,000 claim.

The Debtors' exclusive period to file a plan expires on April 15,
2008.  (Delta Financial Bankruptcy News, Issue No. 4; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000).


DELTA FINANCIAL: U.S. Trustee Sets Sec. 341 Meeting for Feb. 5
--------------------------------------------------------------
The U.S. Trustee for Region 3, Kelly Beaudin Stapleton, will
convene a meeting of creditors in the Chapter 11 cases of Delta
Financial Corporation and its debtor-subsidiaries on Feb. 5,
2008, at 2:00 p.m.  The meeting will be held at Room 5209, 5th
Floor, J. Caleb Boggs Federal Building, 844 King Street,
Wilmington, Delaware.

The meeting is 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 Debtors under oath about the company's financial
affairs and operations that would be of interest to the general
body of creditors.  Rule 9001(5) of the Federal Rules of
Bankruptcy Procedure requires that a representative of the
Debtors appear at the Meeting of Creditors.

                      About Delta Financial

Founded in 1982, Delta Financial Corporation (NASDAQ: DFC) --
http://www.deltafinancial.com/-- is a Woodbury, New York-based
specialty consumer finance company that originates, securitizes
and sells non-conforming mortgage loans.

The company filed a chapter 11 petition on December 17, 2007
(Bankr. D. Del. Lead Case No. 07-11880).  On the same day, three
affiliates filed separate chapter 11 petitions -- Delta Funding
Corp., Renaissance Mortgage Acceptance Corp., and Renaissance
R.E.I.T. Investment Corp. -- (Bankr. D. Del. Case Nos. 07-11881
to 07-11883).

The Debtors selected David B. Stratton, Esq. and James C.
Carignan, Esq. at Pepper Hamilton LLP as their counsel.  The
Debtors' amended consolidated quarterly financial condition as of
Sept. 30, 2007, showed $7,223,528,000 in total assets and
$7,108,232,000 in total liabilities.  The Debtors' petition listed
D.B. Structured Products Inc. as their largest unsecured creditor
holding a $19,500,000 claim.

The Debtors' exclusive period to file a plan expires on April 15,
2008.  (Delta Financial Bankruptcy News, Issue No. 4; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000).


DELTA FINANCIAL: Files Amended List of Unsecured Creditors
----------------------------------------------------------
Delta Financial Corp. and its debtor-affiliates delivered to
the U.S. Bankruptcy Court for the District of Delaware
separate amended petitions.  The amended petitions reflect
changes in the list of creditors holding largest unsecured
claims.

A. Delta Financial Corporation's 5 Largest Unsecured Creditors:

  Entity                           Claim Amount
  ------                           ------------
AG Delta Holdings, LLC             $47,545,676
Attention: Mr. Salah Saabneh
c/o Angelo, Gordon & Co.
245 Park Avenue
New York, NY 10167

D.B. Structured Products, Inc.     $19,500,000
Attention: Vincent D'Amore
60 Wall Street
New York, NY 10005
Fax: (212) 797-5160

H.S.B.C. Mortgage Services          $1,200,000
Attention: Vice-President,
Business Related Risk
Management
2700 Sanders Road
Prospect Heights, IL 60070

B.D.O. Seidman, L.L.P.                $312,750
Attention: Greg Kiemchek
P.O. Box 642743
Pittsburgh, PA 15264-2743

K.P.M.G., L.L.P.                       $10,000

B. Renaissance REIT Investment Corp.'s Two Largest Unsecured
   Creditors:

  Entity                           Claim Amount
  ------                           ------------
AG Delta Holdings, LLC             $47,545,676
Attention: Mr. Salah Saabneh
c/o Angelo, Gordon & Co.
245 Park Avenue
New York, NY 10167

D.B. Structured Products, Inc.     $19,500,000
Attention: Vincent D'Amore
60 Wall Street
New York, NY 10005
Fax: (212) 797-5160

                      About Delta Financial

Founded in 1982, Delta Financial Corporation (NASDAQ: DFC) --
http://www.deltafinancial.com/-- is a Woodbury, New York-based
specialty consumer finance company that originates, securitizes
and sells non-conforming mortgage loans.

The company filed a chapter 11 petition on December 17, 2007
(Bankr. D. Del. Lead Case No. 07-11880).  On the same day, three
affiliates filed separate chapter 11 petitions -- Delta Funding
Corp., Renaissance Mortgage Acceptance Corp., and Renaissance
R.E.I.T. Investment Corp. -- (Bankr. D. Del. Case Nos. 07-11881
to 07-11883).

The Debtors selected David B. Stratton, Esq. and James C.
Carignan, Esq. at Pepper Hamilton LLP as their counsel.  The
Debtors' amended consolidated quarterly financial condition as of
Sept. 30, 2007, showed $7,223,528,000 in total assets and
$7,108,232,000 in total liabilities.  The Debtors' petition listed
D.B. Structured Products Inc. as their largest unsecured creditor
holding a $19,500,000 claim.

The Debtors' exclusive period to file a plan expires on April 15,
2008.  (Delta Financial Bankruptcy News, Issue No. 4; Bankruptcy
Creditors' Service Inc. http://bankrupt.com/newsstand/or
215/945-7000).


DELTA PETROLEUM: 5 New Employees Get 22,542 Common Share Incentive
------------------------------------------------------------------
Delta Petroleum Corporation disclosed that a total of 22,542
shares of its common stock were granted under its 2006 New Hire
Plan to five new employees on Dec. 31, 2007, as an inducement to
entering into employment with the company.

All of these grants were made to non-executive officer employees
and vest over a three-year period.

Headquartered in Denver, Colorado, Delta Petroleum Corporation
(NASDAQ: DPTR) -- http://www.deltapetro.com/-- is an oil and gas
exploration and development company.  The company's core areas of
operations are the Gulf Coast and Rocky Mountain Regions, which
comprise the majority of its proved reserves, production and long-
term growth prospects.

                          *     *     *

In September 2006, Moody's Investor Services placed Delta
Petroleum Corp.'s probability of default rating at 'Caa1'.

In March 2005, Standard & Poor's assigned a 'B-' rating on the
company's long term foreign and local issuer credit.

Both ratings still hold to date.


E*TRADE ABS: Moody's Cuts and Reviews Low-B Ratings on Two Notes
----------------------------------------------------------------
Moody's Investors Service placed this note issued by E*Trade ABS
CDO IV, LTD. on review for possible downgrade:

Class Description: $52,000,000 Class B Third Priority Senior
Secured Floating Rate Notes Due 2042

  -- Prior Rating: Aa2
  -- Current Rating: Aa2, 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: $17,000,000 Class C Fourth Priority Mezzanine
Deferrable Secured Floating Rate Notes Due 2042

  -- Prior Rating: Baa2, on review for possible downgrade
  -- Current Rating: Ba3, on review for possible downgrade

Class Description: $5,000,000 Class D Fifth Priority Mezzanine
Deferrable Secured Floating Rate Notes Due 2042

  -- Prior Rating: Ba1, on review for possible downgrade
  -- Current Rating: B2, 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 consists primarily of structured
finance securities.


E*TRADE ABS: Moody's Cuts Ratings on 4 Note Classes to C from Ca
----------------------------------------------------------------
Moody's Investors Service downgraded and left on review for
possible downgrade these notes issued by E*TRADE ABS CDO I, LTD.:

Class Description: Class B Third Priority Senior Secured Floating
Rate Notes due 2037

  -- Prior Rating: A2
  -- Current Rating: Baa3, on review for possible downgrade

Moody's also announced that it has downgraded these notes:

Class Description: Class C-1 Mezzanine Secured Floating Rate Notes

  -- Prior Rating: Ca
  -- Current Rating: C

Class Description: Class C-2 Mezzanine Secured Fixed Rate Notes

  -- Prior Rating: Ca
  -- Current Rating: C

Class Description: Composite Securities due October 2037

  -- Prior Rating: Ca
  -- Current Rating: C

Class Description: Preference Shares

  -- Prior Rating: Ca
  -- Current Rating: C

According to Moody's, the rating actions are the result of
deterioration in the credit quality of the transaction's
underlying collateral pool, which consists primarily of structured
finance securities.

In addition, Moody's also announced that is has withdrawn its
ratings on these classes of notes:

1) Class A-1 First Priority Senior Secured Floating Rate Notes
According to Moody's, the ratings were withdrawn because the notes
were paid in full.


EL PASO: Moody's Retains "Ba3" Rating on Junior Subordinate Bonds
-----------------------------------------------------------------
Moody's Investors Service affirmed the ratings on El Paso Housing
Corporation, Multifamily Housing Revenue Bonds (La Plaza
Apartments): Baa1 on the Series 2000 A and B; Baa3 on the
Subordinate Series C; and Ba3 on the Junior Subordinate Series D.
The outlook is stable.

Use of proceeds: The bonds were issued for the purpose of
financing the acquisition, rehabilitation and equipping of a 129
unit multifamily housing development located in El Paso, Texas and
occupied by persons of low and moderate income.

Legal security: The bonds are limited obligations of the issuer
payable solely from and secured, to the extent and as provided in
the indenture, by pledge of: 1) all right and title interest of
the issuer; 2) funds, including monies and investments held by the
trustee pursuant to the indenture.

Strengths:

* Strong reserve balances with maximum annual debt service reserve
fully funded.  As of Nov. 30, 2007, the senior, junior and junior
subordinate funds are fully funded.

* The project consistently maintains strong debt service coverage
(1.58/1.36/1.18) senior, junior and junior subordinate
respectively.

* The project consistently maintains high occupancy levels (97% as
of September 2007).

Challenges:

* Growing expenses charged to reserve and replacement balances may
become recurring expenses, thereby reducing net operating income.

* Small size of the projects make cash flow somewhat volatile, as
small swings in revenues or expenses can have a disproportionately
large impact on NOI;

* Potential market competition arising from increased multifamily
building may attract tenants, possible increasing vacancy.

                            Outlook

The outlook remains stable for the Senior, Subordinate and Junior
Subordinate Bonds.  This reflects Moody's expectation that the
bonds will continue to provide sufficient pledged revenue to
bondholders, given the properties demonstrated ability to maintain
strong debt service coverage and low vacancy rates.

               What Could Cause the rating to go Up

Significant improvement in debt service coverage.

              What Could Cause the rating to go Down

The deterioration of occupancy levels or declines in debt service
coverage.

Capital expenditures becoming more frequent, thereby reducing net
operating income.


FAIRVIEW PARK: Files Schedules of Assets and Liabilities
--------------------------------------------------------
Fairview Park Apartments LP delivered to the U.S. Bankruptcy Court
for the Southern District of Indiana its schedules of assets and
debts disclosing:

   Name of Schedule                   Assets      Liabilities
   ----------------                 ----------    -----------
   A. Real Property               undetermined
   B. Personal Property               $111,007
   C. Property Claimed
      as Exempt
   D. Creditors Holding                            $3,101,815
      Secured Claims
   E. Creditors Holding                                27,348
      Unsecured Priority
      Claims
   F. Creditors Holding                               199,986
      Unsecured Nonpriority
      Claims
                                    ----------    -----------
      TOTAL                           $111,007     $3,329,149

Anderson,Indiana-based Fairview Park Apartments LP filed for
chapter 11 bankruptcy on Nov. 30, 2007 (Bankr. S.D. Ind. Case No.
07-11864).  Alicia M. Chandler, Esq., and Martha R. Lehman, Esq.,
at Krieg Devault LLP represent the Debtor in its restructuring
efforts.


GALLERIA CBO: Moody's May Downgrade Ba1 Rating on Two Note Classes
------------------------------------------------------------------
Moody's Investors Service placed these notes issued by Galleria
CBO V (formerly Beacon Hill CBO III, Ltd.) on review for possible
downgrade:

Class Description: $9,000,000 Class C-1 Third Priority Floating
Rate Term Notes, due 2037

  -- Prior Rating: Ba1
  -- Current Rating: Ba1, on review for possible downgrade

Class Description: $9,000,000 Class C-2 Third Priority Fixed Rate
Term Notes, due 2037

  -- Prior Rating: Ba1
  -- Current Rating: Ba1, 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 consists primarily of structured
finance securities.


GARY BURIVAL: Files Schedules of Assets and Liabilities
-------------------------------------------------------
Gary M. Burival and Joyce Burival aka B&B Farms and its debtor-
affiliates submitted to the U.S. Bankruptcy Court for the District
of Nebraska their schedules of assets and liabilities, disclosing:

   Name of Schedule                   Assets      Liabilities
   ----------------                 ----------    -----------
   A. Real Property                 $8,049,000
   B. Personal Property              5,362,186
   C. Property Claimed
      as Exempt
   D. Creditors Holding                           $10,192,890
      Secured Claims
   E. Creditors Holding                                55,916
      Unsecured Priority
      Claims
   F. Creditors Holding                             2,321,991
      Unsecured Nonpriority
      Claims
                                    ----------    -----------
      TOTAL                        $13,411,186    $12,570,797

Gary M. Burival and Joyce Burival aka B&B Farms or Burival Farms
and its debtor-affiliate Richard Burival & Phillip Burival filed
for chapter 11 bankruptcy on Nov. 29, 2007 (Bankr. D. Neb. Case
No. 07-42271 and 07-42273).


GARY BURIVAL: Brings In Needler and Associates as Counsel
---------------------------------------------------------
Gary M. Burival and Joyce Burival aka B&B Farms and its debtor-
affiliates obtained permission from the U.S. Bankruptcy Court for
the District of Nebraska to employ William L. Needler and
Associates Ltd. as their bankruptcy counsel.

The firm will:

   a. give legal advise with respect to the powers and duties
      of the Debtors in the continued operation of their various
      business interests and the management of the properties
      of the estate;

   b. meet with and negotiate with Creditors as to this estate
      and its affairs and business, including both Secured,
      Unsecured Creditors and Priority Creditors;

   c. take any necessary actions to avoid liens against the
      property of the estate and to set aside preferences of
      other transfers which may qualify to be avoided or set
      aside under the Bankruptcy Code;

   d. take other necessary and required actions which are
      deemed by such counsel as ordinary and necessary in the
      proceedings;

   e. provide representation in connection with any adversary
      proceedings filed in Court by various Creditors and
      adversary proceedings required to be filed for the
      protection and preservation of property of the estate and
      the determinations of various 507 (a) (8) claims;

   f. prepare necessary applications, motions, answers,
      responses, orders, reports, and other legal papers;

   g. perform other legal services which may be necessary
      including drafting and filing a Plan or Plans of
      Reorganization and under Chapter 11; and

   h. prosecute appeals of any Order deemed necessary to the
      success of the reorganization proceedings.

Documents submitted to the Court do not disclose the firm's
compensation schedules.

To the best of the Debtors' knowledge Needler represents no
interest adverse to the Debtors' and their estate, and the
employment of the firm would be in the best interest of the
estates.

The firm can be reached at:

             William L. Needler, Esq.
             William L. Needler and Associates Ltd.
             PO Box 177
             Fuller Bldg., 2 North Spruce St., Suite H
             Ogallala, NE 69153
             Tel: (308) 284-4505
             Fax: (308) 284-3813

Gary M. Burival and Joyce Burival aka B&B Farms or Burival Farms
and its debtor-affiliate Richard Burival & Phillip Burival filed
for chapter 11 bankruptcy on Nov. 29, 2007 (Bankr. D. Neb. Case
No. 07-42271 and 07-42273).


GENERAL MOTORS: Offers Incentive Financing on Selected Vehicles
---------------------------------------------------------------
General Motors Corp. Certified Used Vehicles disclosed a new
nationwide GMAC rate incentive program on select GM Certified Used
Vehicles, including GMC Envoy, Chevrolet Malibu, Impala and
Trailblazer models.

The new rate incentive offer, effective Jan. 3, 2008, through
March 31, 2008, provides well-qualified GM Certified Used Vehicles
buyers with 2.9% APR financing for terms up to 48 months or 3.9%
APR financing for terms up to 60 months from GMAC Financial
Services on 2003-2008 models of Chevrolet Malibu, Impala and
Trailblazer and GMC Envoy purchased from participating GM
Certified Used Vehicles dealers.

Or well-qualified customers can receive GMAC 4.9% APR financing
for terms up to 60 months on 2003-2008 models of Chevrolet Tahoe
and Suburban, GMC Yukon, Pontiac Grand Prix and Buick LaCrosse
vehicles at participating GM Certified dealers.

A monthly payment at 2.9% APR financing for 48 months is $22.09
for every $1,000 financed.  Average example down payment is 10%. A
monthly payment at 3.9% APR financing for 60 months is $18.37 for
every $1,000 financed.  Average example down payment is 10%. A
monthly payment at 4.9% APR financing for 60 months is $18.83 for
every $1,000 financed.  Some customers will not qualify.  Not
available with other offers.  Customers must take delivery from a
participating GM Certified Used Vehicles dealer by March 31, 2008.

"These incentives on some of our most popular models offer great
value for customers, who have the opportunity to purchase a high-
quality, low-mileage, like-new vehicle at affordable finance
rates," Paul Pejza, manager, GM Certified Used Vehicles, said.

                 About GM Certified Used Vehicles

GM Certified Used Vehicles -- http://www.gmcertified.com/-- are
high-quality, reconditioned vehicles, available at participating
Buick, Chevrolet, Pontiac and GMC dealers.  All models are six
years old or newer, have 60,000 miles or less, are reconditioned
to stringent GM Certified Used Vehicles quality standards and must
undergo a rigorous 117-point inspection and reconditioning
process.

                           About GM

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 280,000 people around the world and manufactures cars and
trucks in 33 countries, including the United Kingdom, Germany,
France, Russia, Brazil and India.  In 2006, nearly 9.1 million GM
cars and trucks were sold globally under the following brands:
Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn and Vauxhall.  GM's OnStar subsidiary is the
industry leader in vehicle safety, security and information
services.

                         *     *     *

As reported in the Troubled Company Reporter on Nov. 9, 2007,
Moody's Investors Service affirmed its rating for General Motors
Corporation (B3 Corporate Family Rating, Ba3 senior secured, Caa1
senior unsecured and SGL-1 Speculative Grade Liquidity rating) but
changed the outlook to Stable from Positive.  In an environment of
weakening prospects for US auto sales GM has announced that it
will take a non-cash charge of $39 billion for the third quarter
of 2007 related to establishing a valuation allowance against its
deferred tax assets (DTAs) in the US, Canada and Germany.

As reported in the Troubled Company Reporter on Oct. 23, 2007,
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating and other ratings on General Motors Corp. and
removed them from CreditWatch with positive implications, where
they were placed Sept. 26, 2007, following agreement on the new
labor contract.  The outlook is stable.


GIUSEPPE PAESE: Case Summary & 14 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Giuseppe Gabriele Franco Paese
        4460 Hosner
        Oxford, MI 48360

Bankruptcy Case No.: 08-40230

Chapter 11 Petition Date: January 4, 2008

Court: Eastern District of Michigan (Detroit)

Judge: Marci B. McIvor

Debtor's Counsel: Kenneth A. VanNorwick, Esq.
                  1820 North Lapeer Road, Suite 2A
                  Lapeer, MI 48446
                  Tel: (810) 245-6082

Estimated Assets:   $500,000 to $1 Million

Estimated Debts: $1 Million to $10 Million

Debtor's 14 Largest Unsecured Creditors:

   Entity                      Nature of Claim       Claim Amount
   ------                      ---------------       ------------
Sallie Mae                     student loan          $1,559,925
P.O. Box 9500
Wilkes Barre, PA 18773-9500

The Student Loan Corp.         student loan          $164,941
Attention: Citibank
P.O. Box 6615
The Lakes, NV 88901-6615

Blue Cross Blue Shield                               $153,380
600 East Lafayette Boulevard,
Suite 2022
Detroit, MI 48226

Xpress Loan                    student loan          $82,618

Peoples State Bank             property; value of    $80,000
                               security: $665,050;
                               value of senior lien:
                               $600,000

American Express               credit card           $21,985
                               purchase

Key Bank                       student loans         $19,160

Wells Fargo Education          student loan          $16,953
Financial Services

Michigan State University      collection            $15,907
Bloomfield Hills, MI
48302-7279

Michigan State University      student loan          $14,941
East Lansing, MI 48824

G.E. Money Bank                credit card           $14,637
                               purchases

Internal Revenue Service       delinquent taxes      $10,897

Nationwide Credit, Inc.        collecting for        $8,764
                               American EXP.
                               Travel

American Education Services    student loan          $7,270


GLOBAL HOMES: Can Now Solicit Votes on Second Amended Plan
----------------------------------------------------------
The Hon. Kevin Gross of the U.S. Bankruptcy Court for the District
of Delaware directed Global Home Products LLC and its debtor-
affiliates to begin soliciting votes from creditors to accept or
reject their amended plan of reorganization, Jacqueline Palank
writes for The Associated Press.

                       Overview of the Plan

The Debtors' Second Amended Joint Chapter 11 Plan of
Reorganization contemplates the contribution of cash by Global
Home Products Investors, who holds 97.75% of the equity interests
of the Debtors, for distribution to creditors and any cash held by
the Debtors that constitutes collateral for Madeleine LLC's
secured claim, on the effective date of the Plan.

GHPI will contribute $8,500,000 in cash in pro rata distribution
to valid creditors, specifically:

   a) $1,000,000 to general unsecured claims holder plus a
      percentage of certain net proceeds, if any;

   b) $3,500,000 to holders of 503(b)(9) claims; and

   c) $4,000,000 to administrative and priority claims holder.

The $8,500,000 fund will be the sole source of distributions
to the holders of allowed class 5 unsecured claims, allowed
class 4 503(b)(9) claims, allowed administrative and priority
claims, and allowed class 3 claims, provided that the holders
of class 5 claims will also receive a portion of net chapter 5
claims recoveries provided under the plan.

                        Treatment of Claims

Under the Amended Plan, Administrative and Priority Tax Claims,
will be paid in full.

Holders of Non-Tax Priority Claims, totaling $100,000, will also
be paid in full on the effective date of the Plan.

Madeleine LLC's secured claim, totaling $201,824,678, will be
allowed and remain secured by substantially all of the Debtors'
assets

At the Debtors' option, Other Secured Claims will entitled to:

   a) receive cash payment, in full, equal to the amount of its
      allowed secured claim; or

   b) retain its lien on the holder's collateral.

Holders of 503(b)(9) Claims, totaling $10,000,000, will receive a
pro rata share of $3,500,000 on the effective date.  Holders of
these claims will expect to recover 35%.

General Unsecured Claims, totaling between $80,000,000 and
$100,000,000, will also receive a pro rata share of the remaining
proceeds and 18% of any net Chapter 5 claims recoveries.
Unsecured holders will recover between 1% and 1.5%.

Each holder of Reclamation Claims will receive cash from the
$1,000,000 allocated for distribution to the General Unsecured
holders on the effective date.

                        Equity Interests

GHPI's equity interest will be retained under the Plan.  However,
all Non-GHPI equity interests are entitled to a right to purchase
and retain their existing non-GHPI equity interests.

All subsidiary equity interest will remain unimpaired under the
Plan.  Holders of cancelled options and warrants will not retain
any distribution or property from the Debtors.

                       About Global Home

Headquartered in Westerville, Ohio, Global Home Products LLC
-- http://www.anchorhocking.com/and http:/www.burnesgroup.com/
-- sells houseware and home products and manufactures high
quality glass products for consumers and the food services
industry.  The company also designs and markets photo frames,
photo albums and related home decor products.  The company and
16 of its affiliates, including Burnes Puerto Rico, Inc., and
Mirro Puerto Rico, Inc., filed for Chapter 11 protection on
April 10, 2006 (Bankr. D. Del. Case No. Lead 06-10340).

Laura Davis Jones, Esq., David Bertenthal, Esq., Bruce Grohsgal,
Esq., and Joshua Fried, Esq, at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors.  Attorneys at Dinsmore & Shohl, LLP, and
Frost Brown Todd LCC are the Debtors' special counsel.  Epiq
Bankruptcy Solutions, LLC acts as the Debtors' claims agent.

Ronald F. Stengel, Conway Del Genio Gries & Co., LLC, is the
Debtors' chief restructuring officer.  Plante & Moran is the
Debtors' 401(k) plan auditors.  PricewaterhouseCoopers LLP and
Deloitte Tax LLP provide tax services.  Houlihan Lokey Howard &
Zukin Capital is the Debtors' investment bankers while Johnson
Associates Inc. is the special compensation advisor

Sharon Levine, Esq., and Bruce Buechler, Esq., at Lowenstein
Sandler PC; and David M. Fournier, Esq., at Pepper Hamilton LLP,
represent the Official Committee of Unsecured Creditors.
Attorneys at Basham, Ringer y Correa, SC is the Committee's
special counsel.  Huron Consulting Services LLC acts as the
Committee's financial advisors.

Jesse H. Austin, III, Esq., at Paul, Hastings, Janofsky & Walker
LLP, and Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell LLP, represent Medeleine LLC.  Global Home Products
Investors LLC, Cerberus Partners, LP, and Cerberus Capital
Management, LP, are represented in these bankruptcy proceedings by
Lawrence V. Gelber, Esq., and Sophie S. Kim, Esq., at Schulte Roth
& Zabel LLP; and Adam G. Landis, Esq., and Kerri Mumford, Esq., at
Landis Rath & Cobb LLP.


GOLDEN STATE: S&P Upgrades BB+ Rating on $127.1 Million Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on Golden
State Petroleum Transport Corp.'s $127.1 million secured term
notes due 2019 to 'BBB-' from 'BB+'.  The outlook is positive.

The upgrade follows the extension of the bareboat charter by
Chevron Transport Corp., a Chevron Corp. subsidiary, for an
additional two years at a fixed bareboat rate of $28,500 per
vessel per day.  This rate represents an increase of about 4.8%
from the initial charter period daily rate of $27,199 for each
vessel.  The increase in payments to Golden State from Chevron
will augment the debt service reserve (DSR) by about
$10 million, resulting in a total DSR of about $28 million.
This amount is equal to about 21 months' debt service payments, as
opposed to the 14 months of DSR that accumulated during the
initial charter period.

The increase in the DSR and the additional two years of contracted
cash flows have the dual effect of reducing the probability of
default (the project has a greater cushion to weather poor market
conditions in a merchant scenario) and enhancing recovery
prospects (there is less debt outstanding
under any market-related default scenario).

Golden State issued the notes on behalf of owners Golden State
Petro (IOM I-A) PLC and Golden State Petro (IOM I-B) PLC, which
used the proceeds to help fund the building of two very large
crude carriers, each owned separately by the owners.  Chevron
Transport charters both vessels under 18-year charters that have
termination options that began in 2007.

The positive outlook reflects long-term charters with Chevron
Transport, attractive charter renewal provisions, and relatively
low break-even charter rates compared with current market-time
charter rates.  As market conditions continue to support the
likelihood of another two-year renewal and a further augmented
DSR, break-even rates would decrease again and continue to enhance
the vessels' competitive position.

"Depending on market and economic conditions, as well as Chevron
Transport's willingness to extend the charters on these vessels as
the termination option date nears, we may take a positive ratings
action on the term notes.  However, a sustained decline in VLCC
time charter rates could lead to negative outlook or a rating
downgrade," said Standard & Poor's credit analyst Justin Martin.


GOODYEAR TIRE: Jamaican Subsidiary Won't Make Dividend Payments
---------------------------------------------------------------
The Goodyear Tire & Rubber Company's board of directors have
decided that the firm won't pay dividends.

Radio Jamaica relates that the board made the decision during a
meeting on Dec. 13.  Radio Jamaica says the reasons for the
decision was not disclosed.

Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company
(NYSE: GT) -- http://www.goodyear.com/-- is the world's largest
tire company.  The company manufactures tires, engineered rubber
products and chemicals in more than 90 facilities in 28
countries.  Goodyear's operations are located in Argentina,
Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica,
Peru, Russia, among others.  Goodyear employs more than 80,000
people worldwide.

                          *     *     *

In June 2007, Standard & Poor's Ratings Services raised its
ratings on Goodyear Tire & Rubber Co., including its corporate
credit rating to 'BB-' from 'B+'.  These ratings still apply as
of Dec. 4, 2007.


GREEN TREE: Dubitable Repayments Prompt S&P to Cut Ratings to 'D'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class B-1 senior/subordinated pass-through certificates from Green
Tree Financial Corp. Manufactured Housing Trust's
series 1996-4 and 1996-6 to 'D' from 'CCC-'.

The lowered ratings reflect the reduced likelihood that investors
will receive timely interest and the ultimate repayment of their
original principal investments.  These transactions reported
outstanding liquidation loss interest shortfalls for the class B-1
certificates on the December 2007 payment date.

Standard & Poor's believes that interest shortfalls for these
transactions will continue to be prevalent in the future, given
the adverse performance trends displayed by the underlying pool of
collateral, as well as the location of subordinate class write-
down interest at the bottom of the transactions' payment
priorities (after distributions of senior principal).

As of the December 2007 payment date, series 1996-4 and 1996-6 had
experienced cumulative net losses of 13.57% and 13.67%,
respectively, of their initial pool balances.

Standard & Poor's will continue to monitor the outstanding ratings
associated with these transactions in anticipation of future
defaults.

                          Ratings Lowered

     Green Tree Financial Corp. Manufactured Housing Trust

                                       Rating
                                       ------

               Series     Class      To      From
               ------     -----      --      ----

               1996-4     B-1        D       CCC-
               1996-6     B-1        D       CCC-


FIRST BANCORP: Acquisition Bid for VI Community Bank Wins
---------------------------------------------------------
First BanCorp was the successful and winning bidder for the
acquisition of the Virgin Islands Community Bank.

FirstBank Puerto Rico, a subsidiary of First BanCorp, and the
Trustee for the United States District Court for the U.S. Virgin
Islands Bankruptcy Division have signed a definitive agreement for
the purchase of the stock in VICB.

"This acquisition confirms FirstBank's commitment to
continue growing the banking franchise in the principal markets we
serve, and to continue to provide the best quality financial
products and services to all customers in the Virgin Islands,"
Luis M. Beauchamp, Chairman and CEO of First BanCorp, commented.

The closing of this transaction is pending court and regulatory
approvals.  FirstBank and the Trustee are working expeditiously
with the Bankruptcy Court and corresponding regulators to finalize
the transaction.

               About Virgin Islands Community Bank

Located in St. Croix, U.S. Virgin Islands, Virgin Islands
Community Bank has three branches on St. Croix and deposits of
approximately $58 million.

                       About First BanCorp

Based in Santurce, Puerto Rico, First BanCorp (NYSE: FBP) --
http://www.firstbancorppr.com/-- is the parent corporation of
FirstBank Puerto Rico, a state chartered commercial bank with
operations in Puerto Rico, the Virgin Islands and Florida; of
FirstBank Insurance Agency; and of Ponce General Corporation.
First BanCorp, FirstBank Puerto Rico and FirstBank Florida,
formerly UniBank, the thrift subsidiary of Ponce General, all
operate within U.S. banking laws and regulations. The Corporation
operates a total of 151 financial services facilities throughout
Puerto Rico, the U.S. and British Virgin Islands, and Florida.
Among the subsidiaries of FirstBankPuerto Rico are Money Express,
a finance company; First Leasing and Car Rental, a car and truck
rental leasing company; and FirstMortgage, a mortgage origination
company.  In the U.S. Virgin Islands, FirstBank operates First
Insurance VI, an insurance agency; First Trade, Inc., a foreign
corporation management company; and First Express, a small loan
company.

                         *     *     *

First BanCorp continues to carry Fitch Ratings' long-term
Issuer Default Rating of 'BB' and Individual rating of 'C/D',
which were placed in February 2007.


FORD MOTOR: To Equip Vehicles With Fuel-Efficient EcoBoost Engine
-----------------------------------------------------------------
Ford Motor Company is introducing a new engine technology called
EcoBoost that will deliver up to 20% better fuel economy on half a
million Ford, Lincoln and Mercury vehicles annually in North
America during the next five years.

The EcoBoost family of 4-cylinder and 6-cylinder engines features
turbocharging and direct injection technology.  Compared with more
expensive hybrids and diesel engines, EcoBoost builds upon today's
affordable gasoline engine and improves it, providing more
customers with a way to improve fuel economy and emissions without
compromising driving performance.

"EcoBoost is meaningful because it can be applied across a wide
variety of engine types in a range of vehicles, from small cars to
large trucks -- and it's affordable," Derrick Kuzak, Ford's group
vice president of Global Product Development, said.  "Compared
with the current cost of diesel and hybrid technologies, customers
in North America can expect to recoup their initial investment in
a 4-cylinder EcoBoost engine through fuel savings in approximately
30 months.  A diesel in North America will take an average of
seven and one-half years, while the cost of a hybrid will take
nearly 12 years to recoup -- given equivalent miles driven per
year and fuel costs."

Ford will introduce EcoBoost on the new Lincoln MKS flagship in
2009, followed by the Ford Flex and other vehicles.  By 2013, Ford
will have more than half a million EcoBoost-powered vehicles on
the road annually in North America.

In 2009, Ford first will introduce EcoBoost on the Lincoln MKS
featuring a 3.5-liter twin-turbocharged V-6.  It will produce the
power and torque of a V-8 engine with the fuel efficiency of a V-
6.  In fact, with an estimated 340-horsepower and more than 340
lb.-ft. of torque, the Lincoln MKS will be the most powerful and
fuel-efficient all-wheel-drive luxury sedan in the market.

                        More With Less

EcoBoost's combination of direct injection and turbocharging
mitigates the traditional disadvantages of downsizing and boosting
4- and 6-cylinder engines, giving customers both superior
performance as well as fuel economy.

With direct injection, fuel is injected into each cylinder of an
engine in small, precise amounts. Compared to conventional port
injection, direct injection produces a cooler, denser charge,
delivering higher fuel economy and performance.

                        Explorer America

To help explain its vehicle sustainability strategy, Ford has
created the Explorer America concept for the 2008 North American
International Auto Show.

The Explorer America concept delivers an approximately 20% to 30%
fuel-economy improvement -- depending on engine selection -- while
providing room for six and their gear, along with moderate towing
and off-roading capabilities.

The concept aims to highlight for customers and auto show
attendees a number of innovations tied to Ford's systems approach,
including:

   * A powertrain lineup that includes a 4-cylinder 2-liter
     engine with EcoBoost technology delivering 275 hp and 280
     lb.-ft. of torque or, as a premium engine, a 3.5-liter V-6
     delivering about 340 hp.  Depending on engine selection,
     fuel-efficiency will improve by 20 to 30 percent versus
     today's V-6 Explorer;

   * Migration from current body-on-frame to unibody
     construction, reducing weight and delivering superior driving
     dynamics;

   * A fuel-efficient 6-speed transmission with auto shift
     control, allowing the driver to select  and hold a lower gear
     with just the turn of a dial when conditions warrant it;

   * A weight reduction of 150 pounds for the V-6 version thanks
     to its downsized -- yet superior performing -- engine, as
     well as more lightweight materials, suspension and chassis
     components;

   * Fuel-saving electric power assisted steering and other
     engine actions that deliver a fuel savings benefit of about
     5%.  Between 80% to 90% of Ford, Lincoln and Mercury
     vehicles will have EPAS by 2012;

   * Aerodynamic and other parasitic improvements that add up to a
     5% fuel economy gain.

The production model of the Explorer changed the landscape when it
arrived on the scene in 1990 as a 1991 model, delivering an
experience as unique as the owners who would eventually shape the
design of the Explorer America concept.

Today's Explorer leads the mid-size SUV segment in sales.  Since
its introduction 18 years ago, Explorer has sold more than 6.5
million vehicles.

For 2008, Explorer adds several new features, including Ford's
award-winning SYNC system that it developed with Microsoft.  SYNC
connects people and their favorite portable devices while in the
vehicle, including media players and Bluetooth-enabled mobile
phones.  In addition, Explorer receives Ford's EasyFuel capless
refueling system, which is fitted as standard and new available
20-inch polished aluminum wheels.

Ford Explorer received 5-star ratings in the National Highway
Traffic Safety Administration's frontal and side-impact crash
tests for the second year in a row.  Explorer comes standard with
six air bags, including front seat and side-curtain air bags and
AdvanceTrac with class-exclusive Roll Stability Control, an
electronic stability enhancement system that actually measures
what other manufacturers' systems ignore or can only estimate.


HANCOCK FABRICS: Court Extends Exclusive Plan-Filing Period
-----------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware granted
Hancock Fabrics Inc. and debtor-affiliates' request and extended
the exclusive filing period through May 30, 2008, and exclusive
solicitation period through July 30, 2008.

The Court extended the Debtors' exclusive filing period, with
respect to the Official Committee of Unsecured Creditors, through
March 31, 2008, and their exclusive solicitation period through
May 30, 2008, provided that the Debtors deliver to the
Committee's counsel a plan of reorganization term sheet by
January 15, 2008 and a draft plan of reorganization and a draft
disclosure statement by January 31, 2008.

If the Debtors fail to deliver to the Committee's counsel a term
sheet by the term sheet deadline, the exclusive periods as to the
Committee will be terminated five business days after; provided
however that if the Debtors file a plan or reorganization before
the termination date of the exclusive periods as to the
Committee, the extension dates of the exclusive periods for the
Committee will be restored.

If the Debtors deliver to the Committee's counsel a term sheet by
the term sheet deadline but fail to deliver a draft plan by the
draft deadline, then the exclusive periods as to the Committee
will be terminated five business days after the draft plan
deadline; provided however, that, if the Debtors file a plan of
reorganization before the termination date, the extension of the
exclusive filing period for the Committee will still be restored.

If the Debtors receive written consent from the Committee by
March 15, 2008, to extend the exclusive filing period to a date
through May 30, 2008, and the exclusive solicitation period
through July 30, 2008, then, solely as to the Committee, the
exclusive periods will be deemed extended through the dates
agreed upon by the Debtors and the Committee without Court order.

In the event of a termination of the exclusive periods applicable
to the Creditors' Committee, the termination will also be
applicable to the Official Committee of Equity Security Holders.

The Court will hold a status conference on the Exclusivity Order
on February 25, 2008, at 11:00 a.m.

                      About Hancock Fabrics

Headquartered in Baldwyn, Mississippi, Hancock Fabrics Inc.
(OTC: HKFIQ) -- http://www.hancockfabrics.com/-- is a specialty
retailer of a wide selection of fashion and home decorating
textiles, sewing accessories, needlecraft supplies and sewing
machines.  Hancock Fabrics is one of the largest fabric retailers
in the United States, currently operating approximately 400 retail
stores in approximately 40 states.  The company employs
approximately 7,500 people on a full-time and part-time basis.
Most of the company's employees work in its retail stores, or in
field management to support its retail stores.

The company and six of its debtor-affiliates filed for chapter 11
protection on March 21, 2007 (Bankr. D. Del. Lead Case No.
07-10353).  Robert J. Dehney, Esq., at Morris, Nichols, Arsht &
Tunnell, represent the Debtors.  As of Sept. 1, 2007, Hancock
Fabrics disclosed total assets of $159,673,000 and total
liabilities of 122,316,000.  (Hancock Fabric Bankruptcy News,
Issue No. 21, Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000).


HEARTLAND AUTOMOTIVE: Voluntary Chapter 11 Case Summary
-------------------------------------------------------
Debtor: Heartland Automotive Holdings, Inc.
        11308 Davenport Street
        Omaha, NE 68154

Bankruptcy Case No.: 08-40057

Debtor-affiliates filing separate Chapter 11 petitions:

        Entity                                     Case No.
        ------                                     --------
        Heartland Automotive Services of Austin,   08-40046
        Inc.
        H.A.S. Holdings, Inc.                      08-40048
        Heartland Automotive Services, Inc.        08-40050
        Heartland Automotive Services II, Inc.     08-40051
        A. Fanticola Cos., Inc.                    08-40053
        A.F.C. Northwest, Inc.                     08-40054
        Lube Acquisition, Inc.                     08-40056
        Oil Express, Inc.                          08-40057
        Lube Pit, Inc.                             08-40059

Type of Business: Founded in 1995, the Debtors, headquartered in
                  Nebraska, operate quick-oil-change stores in the
                  U.S.  See http://www.heartlandjiffylube.com/

Chapter 11 Petition Date: January 7, 2007

Court: Northern District of Texas (Ft. Worth)

Judge: D. Michael Lynn

Debtors' Counsel: Jeff P. Prostok, Esq.
                  Forshey & Prostok, L.L.P.
                  777 Main Street, Suite 1290
                  Fort Worth, TX 76102
                  Tel: (817) 877-8855

Heartland Automotive Holdings, Inc's Financial Condition:

Estimated Assets: $100 Million to $500 Million

Estimated Debts:  $100 Million to $500 Million

The Debtors did not file lists of their largest unsecured
creditors.


HMSC CORP: Highly Leveraged Capital Prompts S&P to Hold 'B' Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on HMSC
Corp., the intermediate holding company of Swett & Crawford Group
Inc., to negative from stable.

Standard & Poor's also said that it affirmed its 'B' counterparty
credit rating on HMSC.

"The revised outlook reflects our belief that Swett & Crawford
will not meet our stated expectations for 2007," said Standard &
Poor's credit analyst Tracy Dolin.  "In addition, Swett &
Crawford's coverage metrics are starting to mirror those of lower
rated peers."

During the first nine months of 2007, the company's adjusted
EBITDA fixed-charge coverage was 1.7x, which is low for the
current rating.  Swett & Crawford's operating and coverage metrics
will likely deteriorate further in 2008 if property/casualty rates
soften at an accelerating pace.

The outlook revision also stems from S&P's view of Swett &
Crawford's competitive position in the wholesale insurance
brokerage space, which, though good, has deteriorated somewhat
over the last year.  Swett & Crawford's market share (based on pro
forma 2006 premiums), which had been No. One for 20 years,
fell to No. Three.  Its peers have been more rapidly taking
advantage of opportunistic acquisitions and have generated
relatively more business from nonproperty/casualty insurance
brokering revenue streams, which are less susceptible to current
rate pressures.

The rating reflects Swett & Crawford's highly leveraged capital
structure, limited financial flexibility, and low-quality balance
sheet, which is the result of a large amount of intangibles.  In
addition, Swett & Crawford is more susceptible to the vagaries of
underwriting cycles, particularly in excess and surplus lines,
than its peers because of less earnings diversification.  Swett &
Crawford's wholesale property/casualty brokerage segment
contributed about 80% of commissions and fees, with the remainder
derived from its managing general agency operations.  In addition,
the wholesale brokerage space has experienced increased
competition.

Partially offsetting these negative factors are the company's good
competitive position as a leading wholesale insurance broker in
the U.S. and a seasoned management team that has historically
delivered strong operating margins relative to the company's peers
and positive cash flow.

If the company remains unable to meet S&P's original performance
expectations for the current rating level, which include adjusted
EBITDA fixed-charge coverage of at least 1.9x, the ratings could
be lowered.  The ratings will come under pressure particularly if
the company's margins compress or property/casualty rates continue
to soften at an accelerated pace, precipitating unsatisfactory
coverage metrics.  If the company is able to improve its financial
profile materially, Standard & Poor's will consider revising the
outlook back to stable.


HOWARD ENGLISH: Case Summary & 12 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Howard Glen English
        28 Prestige Court
        Greenville, SC 29615

Bankruptcy Case No.: 08-00103

Chapter 11 Petition Date: January 5, 2008

Court: District of South Carolina (Spartanburg)

Judge: Helen E. Burris

Debtor's Counsel: Robert H. Cooper, Esq.
                  3523 Pelham Road, Suite B
                  Greenville, SC 29615
                  Tel: (864) 271-9911

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

Debtor's 12 Largest Unsecured Creditors:

   Entity                      Nature of Claim       Claim Amount
   ------                      ---------------       ------------
Capital One                    credit card           $16,189
Attention:
Bankruptcy Department
P.O. Box 85147
Richmond, VA 23285

Target                         credit card           $6,785
Attention:
Bankruptcy Department
P.O. Box 59231
Minneapolis, MN 55459

Carolina First Bank            credit line           $2,411
P.O. Box 19030
Greenville, SC 29602

Labor Ready                                          $1,949

Culligan/G.E.M.B.              credit line           $247

Doctors Care Congaree                                $218

BrandSource/G.E.M.B.           credit line           $172

Arrow Financial Services                             $149

Hired Killers                                        $95

Waste Industries                                     $59

Greenville Water System        service               $39

S.J.W.D. Water District                              $12


IDAHO HOUSING: S&P Attaches BB+ Ratings on 2008 Revenue Bonds
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' rating to
Idaho Housing and Finance Association's 2008A and 2008B nonprofit
facilities revenue bonds, issued for the Idaho Arts Charter
School.  The outlook is stable.

Bond proceeds will be used to purchase a site and existing
historic school building in downtown Nampa, currently owned and
operated by a local church, with additional costs for renovation,
expansion, and furniture and equipment.

"The school has a short operating history, having opened in fall
of 2005, but it has demonstrated strong demand, a healthy wait
list, and sufficient enrollment to generate solid coverage of
proposed debt service without need for additional enrollment
growth.  There is some risk associated with acquiring and
renovating a new facility, however, as the actual costs to operate
the facility will not be known until work is completed and several
years of operation are completed," said Standard & Poor's credit
analyst Rob Williams.

"Although the school's operating history is limited, financial
performance to date has been strong, with operating surpluses
approaching 10% of expenditures in both of the two audited fiscal
years and a similar projected surplus in fiscal 2008.  At the end
of fiscal 2007, the school recorded an unreserved ending fund
balance of $604,470, equal to a healthy 22% of expenditures, with
$692,295 (or 93 days' expenditures) in cash-and-investments on
hand."

The Idaho Arts Charter School operates a single K-12 public
charter school in the City of Nampa (population 76,560), roughly
20 miles east of Boise.  The school offers an arts-based
curriculum under a charter sponsored by the Nampa School District
in August 2004.  The school opened with 466 students in grades K-
10 in fiscal 2006 and has expanded to 532 students in grades K-12
in fiscal 2008.


ING RE UK LTD: Chapter 15 Petition Summary
------------------------------------------
Petitioner: Michael Larry Emerson
            ING Re (U.K.) Ltd.
            Attention: The London Underwriting Centre
            3 Minster Court, Mincing Lane
            London EC3R 7DD
            United Kingdom

Debtor: ING Re (U.K.) Ltd.
        aka ReliaStar Reinsurance Group (UK) Ltd.
        Attention: The London Underwriting Centre
        3 Minster Court, Mincing Lane
        London EC3R 7DD
        United Kingdom

Case No.: 08-10018

Type of Business: The Debtor provided accident and health
                  reinsurance services and was also engaged in the
                  retrocession business in the U.K. since 1997.

                  The period of coverage for all its contracts has
                  expired.  See http://www.ing-re.co.uk

                  The Debtor ceased its business and went into
                  run-off in 2002.  However, since it expected the
                  run-off of its business to continue for a number
                  of years, it had proposed a solvent scheme of
                  arrangement under Section 425 of the U.K.
                  Companies Act of 1985 (the "Scheme of
                  Arrangement") as the most efficient and
                  effective method of making full payment to its
                  creditors in the shortest practical time.

                  On September 21, 2007, the Debtor sought
                  permission from the High Court of Justice of
                  England and Wales in the U.K. to convene a
                  meeting with the creditors to allow them to vote
                  on the Scheme of Arrangement.

                  On October 31, 2007, the court gave the sought
                  permission.  On December 19, 2007, the meeting
                  between the Debtor and the creditors was
                  convened.

Chapter 15 Petition Date: January 4, 2008

Court: Southern District of New York

Judge: Robert E. Gerber

Petitioner's Counsel: Jennifer C. DeMarco, Esq.
                      Sara M. Tapinekis, Esq.
                      Clifford Chance, L.L.P.
                      31 West 52nd Street
                      New York, NY 10019
                      Tel: (212) 878-8569
                      Fax: (212) 878-8375

Financial Condition as of December 31, 2006:

Total Assets: $90,932,273

Total Debts:  $68,476,853


JOHN ANDERSON: Case Summary & Eight Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: John Matthew Anderson
        3666 South Narcissus Way
        Denver, CO 80237

Bankruptcy Case No.: 08-10105

Chapter 11 Petition Date: November 4, 2008

Court: District of Colorado (Denver)

Judge: A. Bruce Campbell

Debtor's Counsel: Robert Padjen, Esq.
                  Laufer & Padjen, L.L.C.
                  5290 D.T.C. Parkway, Suite 150
                  Englewood, CO 80111
                  Tel: (303) 830-3173

Estimated Assets: $1 Million to $10 Million

Estimated Debts: $10 Million to $50 Million

Debtor's Eight Largest Unsecured Creditors:

   Entity                      Nature of Claim       Claim Amount
   ------                      ---------------       ------------
Countrywide                    loan                  $1,704,118
P.O. Box 650070
Dallas, TX 75265

                               property; value of    $1,779,368
                               security:
                               $1,375,000

Whitney National Bank          property              $3,441,000
Attention: Eric Sander,
Vice-President
P.O. Box 9789
Mobile, AL 36691

First City Bank                property              $3,310,632
135 Perry Avenue, Southeast
Fort Walton Beach, FL 32548

Wachovia                       property              $407,917
P.O. Box 50010
Roanoke, VA 24022

Trustmark                      property              $385,000
4460 Legendary Drive,
Suite 350
Destin, FL 32541

Home Comings Financial         loan                  $328,604
P.O. Box 205
Waterloo, IA 50704-0205

First Bank of Denver           credit line           $50,075

The Preserve at Grayton Beach  credit                $3,446


JOHNSON RUBBER: Section 341(a) Meeting Scheduled for January 11
---------------------------------------------------------------
The United States Trustee for Region 9 will convene a hearing of
Johnson Rubber Company Inc.'s creditors on Jan. 11, 2008, at 10:30
a.m., at Office of U.S. Trustee, 6th Floor.

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.

Headquatered in Middlefield, Ohio, Johnson Rubber Company Inc. --
http://www.johnsonrubber.com/-- designs, develops and
manufactures polymer components.  The company and its
parent, JR Holding Corp., filed for Chapter 11 protection on
December 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391).  The
Debtors selected Donlin Recano as claims, noticing and balloting
agent.  When the Debtors filed for protection against their
creditors, they listed total assets at $15,346,607 and total debts
at $19,869,931.


JOHNSON RUBBER: Wants To Hire Benesch Friendlander as Counsel
-------------------------------------------------------------
Johnson Rubber Company Inc. and its parent holding company, JR
Holding Corp., ask the Hon. Randolph Baxter of the United States
Bankruptcy Court Northern District of Ohio for permission to
employ Benesch, Friedlander, Coplan & Aronoff LLP as their
attorney.

Benesch Friendlander is expected to:

   a) advise the Debtors of their rigths, powers and duties as
      debtors in possession that are continuing to operate and
      manage their businesses and property;

   b) attending meetings and negotiations with representative of
      creditors and other parties in interest;

   c) prepare on behalf of the Debtors all necessary and
      appropriate applications, motions, pleadings, draft orders,
      notices, schedules, and other documents, and reviewing all
      financial and other reports to be filed with the Court in
      these Chapter 11 cases;

   d) advise the Debtors concering, and preparing responses to,
      applications, motions, pleadings, notices and other papers
      that may be filed and served in these Chapter 11 cases;

   e) advise the Debtors concering, and assisting in the
      negotiation and documentation of, the refinancing or sale of
      their assets, debt and lease restructuring, executory
      contract and unexpired lease assumptions, assignments or
      rejections, and related transactions;

   f) review the nature and validity of liens asserted against the
      Debtors' property and advising the Debtors concering the
      enforceability of the liens;

   g) advising the Debtors concering the actions that they might
      take to collect and recover property for the benefit of
      their estates;

   h) counsel the Debtors in connection with the formulation,
      negotiation, and confirmation of plan or plans of
      reorganization and related documents; and

   i) perform other legal services for and on behalf of the
      Debtors as may be necessary or appropriate in the
      administration of their Chapter 11 cases and businesses,
      including advising assisting the Debtors with respect to
      debt restructuri8ng, corporate governance issues related to
      restructuring, stock or asset dispostions and general
      business and litigation matters.

Before the Debtors filed for bankruptcy, they paid the firm
approximately $194,948 for legal services in connection with the
evaluation of their financial restructuring alternatives and first
day documents and pleadings.

The firm's professionals and their compensation rates are:

   Professionals               Designations     Hourly Rates
   -------------               ------------     ------------
   William I. Kohn, Esq.       Partners             $645
   Raymond H. Lemisch, Esq.    Partners             $545
   Bradford J. Sandler, Esq.   Partners             $475
   David M. Neumann, Esq.      Associates           $320
   Jennifer R. Hoover, Esq.    Associates           $300
   Scott B. Lepene, Esq.       Associates           $240
   Lisa M. Behra               Paralegal            $160
   Sandi Van Dyk               Paralegal            $145

William I. Kohn, Esq., a partner of the firm, assures the Court
that the firm does not hold any interest adverse to the Debtors'
estate and is a "disinterested person" as defined in Section
101(14).

Mr. Kohn can be reached at:

   William I. Kohn, Esq.
   Benesch Friedlander Coplan & Aronoff LLP
   2300 BP Tower
   200 Public Square
   Cleveland, OH 44114-2378
   Tel: (216) 363-4500
   Fax: (216) 363-4588
   http://www.bfca.com/

Headquatered in Middlefield, Ohio, Johnson Rubber Company Inc. --
http://www.johnsonrubber.com/-- designs, develops and
manufactures polymer components.  The company and its
parent, JR Holding Corp., filed for Chapter 11 protection on
December 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391).  The
Debtors selected Donlin Recano as claims, noticing and balloting
agent.  When the Debtors filed for protection against their
creditors, they listed total assets at $15,346,607 and total debts
at $19,869,931.


JOHNSON RUBBER: Taps Development Specialist as Financial Advisor
----------------------------------------------------------------
Johnson Rubber Company Inc. and its parent holding company, JR
Holding Corp., ask the Hon. Randolph Baxter of the United States
Bankruptcy Court Northern District of Ohio for permission to
employ Development Speciailist Inc. as their financial advisor.

Development Specialists will:

   a) assist the Debtors' development, review and evaluation of
      ist overall restructuring plan and aid in its
      implementation;

   b) assist the Debtors with the development and preparation of
      financially oriented analyses and reports and provide other
      assistance to its financial reorganization;

   c) participate in negotiations with creditors, stakeholders,
      and other appropriate parties in connection with any
      reorganization or winddown plan;

   d) assist in the development and implementation of a short-term
      budget, cash flow projections and operating plans;

   e) assist in the preparation of required bankruptcy schedules
      and statement of financial affairs as well as periodic
      reports to be submitted to a Bankruptcy Court; and

   f) perform other tasks as may be agreed to by the firm and
      directed by the Debtors.

The firm's professionals and their compensation rates are:

   Professionals                Hourly Rates
   -------------                ------------
   Fred C. Caruso                   $550
   Patrick J. O'Malley              $495
   Eric R. Sweitzer                 $350
   Elizabeth M. Lynch               $350
   Jill E. Costie                   $260

Patrick J. O'Malley, a consultanht and cheif official officer of
the firm, assures the Court that the firm is a "disinterested
person" as defined in Section 101(14) of the Bankruptcy Code.

Headquatered in Middlefield, Ohio, Johnson Rubber Company Inc. --
http://www.johnsonrubber.com/-- designs, develops and
manufactures polymer components.  The company and its
parent, JR Holding Corp., filed for Chapter 11 protection on
December 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391).  The
Debtors selected Donlin Recano as claims, noticing and balloting
agent.  When the Debtors filed for protection against their
creditors, they listed total assets at $15,346,607 and total debts
at $19,869,931.


JP MORGAN: Moody's Maintains Low-B Ratings on Six Certificates
--------------------------------------------------------------
Moody's Investors Service affirmed these ratings of J.P. Morgan
Chase Commercial Mortgage Corp., Commercial Pass-Through
Certificates, Series 2006-CIBC15:

  -- Class A-1, $60,365,983, affirmed at Aaa
  -- Class A-3, $73,671,000, affirmed at Aaa
  -- Class A-4, $1,001,834,000, affirmed at Aaa
  -- Class A-SB, $101,045,000, affirmed at Aaa
  -- Class A-1A, $230,424,746, affirmed at Aaa
  -- Class A-M, $211,831,000, affirmed at Aaa
  -- Class A-J, $164,168,000, affirmed at Aaa
  -- Class X-1, Notional, affirmed at Aaa
  -- Class X-2, Notional, affirmed at Aaa
  -- Class B, $37,070,000, affirmed at Aa2
  -- Class C, $15,888,000, affirmed at Aa3
  -- Class D, $31,744,000, affirmed at A2
  -- Class E, $26,479,000, affirmed at A3
  -- Class F, $29,127,000, affirmed at Baa1
  -- Class G, $26,479,000, affirmed at Baa2
  -- Class H, $21,183,000, affirmed at Baa3
  -- Class J, $7,943,000, affirmed at Ba1
  -- Class K, $10,592,000, affirmed at Ba2
  -- Class L, $7,943,000, affirmed at Ba3
  -- Class M, $2,648,000, affirmed at B1
  -- Class N, $5,296,000, affirmed at B2
  -- Class P, $5,296,000, affirmed at B3

As of the Dec. 12, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by less than 1.0% to
$2.103 billion from $2.118 billion at securitization.  The
Certificates are collateralized by 122 loans, ranging in size from
less than 1.0% to 13.9% of the pool, with the top ten loans
representing 43.4% of the pool.  The pool includes two shadow
rated loans comprising 1.2% of the current outstanding balance.
The pool has not experienced any losses to date and currently
there are no loans in special servicing.  Fourteen loans,
representing 10.5% of the pool, are on the master servicer's
watchlist.

Moody's was provided with year-end 2006 operating results for
98.0% of the pool.  Moody's weighted average loan to value ratio
for the conduit component is 103.4%, essentially the same as at
securitization, resulting in the affirmation of all classes.

The top three conduit loans represent 23.1% of the pool.  The
largest conduit loan is the Warner Building Loan
($292.7 million -- 13.9%), which is secured by a 666,000 square
foot Class A office building located in Washington, D.C.  The
property was 100.0% occupied as of September 2007, essentially the
same as at securitization.  Property performance has been impacted
by increased expenses.  Moody's LTV is 113.3%, compared to 110.3%
at securitization.

The second largest conduit loan is the Greenway Portfolio Loan
($112.0 million -- 5.3%), which is secured by eight office
buildings located in Middleton, Wisconsin.  The buildings range
from 26,000 to 260,000 square feet and total 913,000 square feet.
The portfolio was 96.9% occupied as of July 2007, compared to
93.8% at securitization.  Moody's LTV is 119.5%, the same as at
securitization.

The third largest conduit loan is the Midwest Retail Portfolio
Loan ($81.7 million -- 3.9%), which is secured by 13 retail
properties located in Nebraska (12) and South Dakota.  The
properties range from 34,000 to 180,000 square feet and total 1.5
million square feet.  The portfolio was 92.1% occupied as of June
2007, compared to 94.4% at securitization.  Moody's LTV is 106.5%,
the same as at securitization.

The ratings of the two shadow rated loans are the same as at
securitization.  The Southington Plaza Loan ($13.0 million --
0.6%), which is secured by a 152,000 square foot retail property
in Southington, Connecticut, is currently shadow rated Baa3.  The
Waterford Square Loan ($13.0 million -- 0.6%), which is secured by
a 284,000 square foot retail property located in Waterford,
Connecticut, is currently shadow rated Baa3.


KATHERINE FUINA: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Katherine Fuina
        6 East 55th Street, Kirkland
        Beach Haven, NJ 08008

Bankruptcy Case No.: 08-10206

Chapter 11 Petition Date: January 6, 2008

Court: District of New Jersey (Trenton)

Debtor's Counsel: Shmuel Klein, Esq.
                  113 Cedarhill Avenue
                  Mahwah, NJ 07430
                  Tel: (201) 529-3411

Estimated Assets: $1 Million to $10 Million

Estimated Debts:  $1 Million to $10 Million

The Debtor did not file a list of its largest unsecured creditors.


KRISPY KREME: James Morgan Replaces D. Brewster as President & CEO
------------------------------------------------------------------
Krispy Kreme Doughnuts Inc., Krispy Kreme Doughnut Corporation and
Daryl G. Brewster mutually determined to terminate their
employment relationship.

Mr. Brewster resigned, effective Jan. 6, 2008, the positions of
president, chief executive officer and director of the company as
well as all other director and officer positions with the
company's subsidiaries and affiliates.  He will cease to be an
employee on Jan. 31, 2008.

James H. Morgan, chairman of the board of directors, has been
elected to replace Mr. Brewster as president and chief executive
officer.  Mr. Morgan, 60, has been a director of the company since
July 2000 and was elected chairman of the board in January 2005.
Since 2001, Mr. Morgan has served as chairman and chief investment
officer of Covenant Capital LLC, an investment management firm
which he founded.

                    Agreement with Mr. Brewster

The company and Mr. Brewster have entered into an agreement and
release, dated as of Jan. 6, 2008.  The agreement, except as
otherwise provided, supersedes the employment agreement, dated as
of March 6, 2006, between the company and Mr. Brewster.

The agreement provides that Mr. Brewster will receive an amount
equal to one year's base salary under the employment agreement or
$700,000 in cash over the year following the separation date and
that the company will grant to Mr. Brewster restricted share units
under the company's 2000 stock incentive plan with respect to a
number of shares of common stock of the company having an
aggregate fair market value (based on the closing share price on
Jan. 4, 2008) equal to $1,190,000 (equivalent to one year's base
salary and target bonus under the employment agreement), and the
shares subject to the RSUs will be distributed to Mr. Brewster on
the third trading day after fiscal year 2008 earnings are
released, but no later than April 15, 2008.  Accordingly, Mr.
Brewster will receive an aggregate of 420,495 shares of common
stock.  The employment agreement had provided for two years of
base salary payable in cash over the two years following a not-
for-cause termination of employment and for two years of target
bonus payable in cash over the two years following such a
termination.  Further, in the event of a not-for-cause termination
of employment, the employment agreement had provided for an amount
equal to a pro rated target bonus for the year of termination.

Mr. Brewster also will be entitled to an additional pension make-
whole in the amount of $319,552, payable Aug. 1, 2008, which
represents 24 months of additional vesting under the pension make-
whole, which is equivalent to what is provided for in the
employment agreement in the event of a not-for-cause termination.

As of the agreement date, Mr. Brewster had 241,145 shares of
unvested restricted common stock which, under the terms of the
employment agreement, would have vested upon a not-for-cause
termination of employment.  Under the agreement, it is provided
that 120,573 of these shares will vest, and Mr. Brewster has
agreed that 120,572 of these shares will be forfeited.  In
addition, as of the agreement date, Mr. Brewster held unvested
options to purchase 333,333 shares of common stock of KKDI at an
exercise price of $6.39 per share and unvested options to purchase
201,399 shares at an exercise price of $3.41 per share, all of
which would have vested upon a not-for-cause termination of
employment under the employment agreement.  He also held vested
options to purchase 166,667 shares of common stock at an exercise
price of $6.39 per share.  In the agreement, it is provided that
the $3.41 options will vest, and Mr. Brewster has agreed that the
$6.39 options, both unvested and vested, will be forfeited.

Under the terms of the agreement, Mr. Brewster releases the
company and its affiliates from all claims, including claims
relating to his employment with the company and the termination of
such employment.  Certain provisions of the employment agreement,
including the confidentiality provisions, the noncompetition
provisions, the nonsolicitation provisions and the indemnification
provisions, survive the termination of the employment agreement.
The company has similarly released Mr. Brewster from all claims,
including claims relating to his employment with the company.

                       About Krispy Kreme

Headquartered in Winston-Salem, North Carolina, Krispy Kreme
Doughnuts Inc. (NYSE: KKD) -- http://www.krispykreme.com/--
retails doughnuts.  There are about 411 Krispy Kreme stores
including satellites operating system-wide in 41 U.S. states,
Australia, Canada, Hong Kong, Indonesia, Japan, Kuwait, Mexico,
the Philippines, the Republic of South Korea, the United Arab
Emirates and the United Kingdom.

                         *     *     *

As reported in the Troubled Company Reporter on Sept. 17, 2007,
Moody's Investors Service lowered Krispy Kreme Doughnut
Corporation's Speculative Grade Liquidity rating to SGL-4 from
SGL-3, indicating weak liquidity.  Concurrently Moody's revised
the rating outlook to negative while affirming Krispy Kreme's
Caa1 corporate family rating and B3 rating of its $160 million
senior secured credit facilities.


LANCER FUNDING: Moody's May Cut Ba1 Rating on Class A1S Notes
-------------------------------------------------------------
Moody's Investors Service downgraded ratings of four classes of
notes issued by Lancer Funding II, Ltd., and left on review for
possible further downgrade ratings of three of these classes of
notes.  The notes affected by this rating action are:

Class Description: $39,000,000 Class X Senior Secured Fixed Rate
Notes Due 2013

  -- Prior Rating: Aaa, on review for possible downgrade
  -- Current Rating: A3, on review for possible downgrade

Class Description: $600,000,000 Class A1S Variable Funding Senior
Secured Floating Rate Notes Due 2047

  -- Prior Rating: A3, on review for possible downgrade
  -- Current Rating: Ba1, on review for possible downgrade

Class Description: $275,000,000 Class A1J Senior Secured Floating
Rate Notes Due 2047

  -- Prior Rating: Baa3, on review for possible downgrade
  -- Current Rating: Caa1, on review for possible downgrade

Class Description: $38,000,000 Class A2 Senior Secured Floating
Rate Notes Due 2047

  -- Prior Rating: B3, on review for possible downgrade
  -- Current Rating: Ca

The rating actions reflect deterioration in the credit quality of
the underlying portfolio, as well as the occurrence on Nov. 8,
2007, as reported by the Trustee, of an event of default caused by
a failure of the Senior Credit Test to be satisfied, as required
under Section 5.1(h) of the Indenture dated May 24, 2007.

Lancer Funding II, Ltd. is a collateralized debt obligation backed
primarily by a portfolio of CDO securities.

Recent ratings downgrades on the underlying portfolio caused
ratings-based haircuts to affect the calculation of
overcollateralization.  Thus, the Senior Credit Test failed to
meet the required level.

As provided in Article V of the Indenture during the occurrence
and continuance of an Event of Default, holders of Notes may be
entitled to direct the Trustee to take particular actions with
respect to the Collateral Debt Securities and the Notes.

The rating downgrades taken reflect the increased expected loss
associated with each tranche.  Losses are attributed to diminished
credit quality on the underlying portfolio.  The severity of
losses of certain tranches may be different, however, depending on
the timing and choice of remedy to be pursued by certain
Noteholders.  Because of this uncertainty, the ratings assigned to
Class A1S, Class A1J and the Class X Notes remain on review for
possible further action.


LEVITT AND SONS: Weinstock Okayed as Affiliates' Special Counsel
----------------------------------------------------------------
Levitt and Sons Georgia LLC, Levitt and Sons of Cherokee County
LLC, Levitt and Sons of Hall County LLC, Levitt and Sons of
Paulding County LLC, Levitt Construction Georgia LLC, Levitt
and Sons of South Carolina LLC, Levitt and Sons of Horry County
LLC, and Levitt Construction - South Carolina LLC, obtained
authority from the U.S. Bankruptcy Court for the Southern District
of Florida to employ Weinstock & Scavo, P.C., as their special
counsel, nunc pro tunc to the date of bankruptcy filing.

As special counsel, Weinstock is expected to provide legal
services in connection with closings and lien issues in South
Carolina and Georgia.

LAS Georgia, et al., also obtained approval for Weinstock to apply
$3,660 of the $10,167 held in trust to outstanding pre-petition
date fees and costs with the balance to be applied to services to
be rendered for the Moving Debtors.

Paul Steven Singerman, Esq., at Berger Singerman, P.A., in Miami,
Florida, related that Weinstock represented the Moving Debtors
before the bankruptcy filing date in connection with closings and
lien issues in South Carolina and Georgia.  As a result, the firm
is familiar with these matters, and has already devoted numerous
hours in addressing these issues.  He added that Weinstock has
extensive experience and knowledge in these related fields and is
well qualified to advise the moving Debtors.

Although the firm holds a prepetition claim against the moving
Debtors for $3,660, the matters on which Weinstock is to be
employed are unaffected by the fact of that claim, Mr. Singerman
said.

Mr. Singerman assured the Court that Weinstock's services will
not be duplicative of those services to be rendered by the
Debtors' general bankruptcy counsel Berger Singerman, P.A., and
the services of these counsel will not overlap.

The Moving Debtors is expected to pay the firm its standard hourly
rates and reimburse reasonable and necessary expenses.  The firm
revises its regular hourly rates on the first day of January each
year, and requests that, effective January 2008, these rates be
revised to reflect the hourly rates, which will be in effect at
that time.  The rates are:

      Designation                 Hourly Rate
      -----------                 -----------
      Senior Partner                  $425
      Junior Partner                  $300
      Senior Associate                $250

James J. Scavo, a partner of Weinstock, disclosed that the firm
received a $15,000 retainer on Oct. 9, 2007.  After application of
$4,833 for prepetition services rendered and costs incurred
through October 2007, Weinstock holds $10,167 in trust.  Upon
approval of the application, the firm will apply a portion of the
balance of funds held in trust to outstanding prepetition fees and
costs, with the balance to be applied to postpetition fees and
costs incurred in connection with postpetition services rendered
for the Moving Debtors.

Mr. Scavo further attested that neither the firm nor its
professionals holds or represents any interest adverse to the
Moving Debtors or their estates with respect to matters for which
the firm is being retained.

                      About Levitt and Sons

Based in Fort Lauderdale, Florida, Levitt and Sons LLC --
http://www.levittandsons.com/-- is the homebuilding subsidiary of
Levitt Corporation (NYSE:LEV).  Levitt Corp. --
http://www.levittcorporation.com/-- together with its
subsidiaries, operates as a homebuilding and real estate
development company in the southeastern United States.  The
company operates in two divisions, homebuilding and land.  The
homebuilding division primarily develops single and multi-family
homes for adults and families in Florida, Georgia, Tennessee, and
South Carolina.  The land division engages in the development of
master-planned communities in Florida and South Carolina.

Levitt and Sons LLC and 38 of its homebuilding affiliates filed
for Chapter 11 protection on Nov. 9, 2007 (Bankr. S.D. Fla. Lead
Case No. 07-19845).  Paul Singerman, Esq. and Jordi Guso, Esq., at
Berger Singerman, P.A., represent the Debtors in their
restructuring efforts.  The Debtors chose AP Services, LLC as
their crisis managers, and Kurtzman Carson Consultants, LLC as
their claims and noticing agent.  Levitt Corp., the parent
company, is not included in the bankruptcy filing.

The Debtors' latest consolidated financial condition as of
Sept. 30, 2007 reflect total assets of $900,392,000, and total
liabilities of $780,969,000.  (Levitt and Sons Bankruptcy News,
Issue No. 8; Bankruptcy Creditors' Service Inc.;
http://bankrupt.com/newsstand/or 215/945-7000)

The Debtors' exclusive plan filing period expires on
March 8, 2008.


LODGENET ENT: Sept. 30 Balance Sheet Upside-Down by $18 Million
---------------------------------------------------------------
LodgeNet Entertainment Corporation's consolidated balance sheet at
Sept. 30, 2007, showed $709.4 million in total assets and
$727.4 million in total liabilities, resulting in an $18.0 million
total stockholders' deficit.

The company reported a net loss of $11.4 million for the third
quarter ended Sept. 30, 2007, which includes $7.9 million of
acquisition related costs for restructuring, integration, and
acquired intangibles.  Net loss excluding those acquisition
related items was $3.5 million.

Quarterly revenue was $142.6 million, an increase of
$66.1 million over revenue of $76.5 million in the third quarter
of 2006.

The revenue growth was primarily driven by the integration of the
company's On Command and StayOnline acquisitions, which
contributed $63.1 million to revenue. On a proforma basis, which
includes On Command and StayOnline, total revenue for the third
quarter 2007 increased 1.4% over the revenue for the third quarter
of 2006.

"During the quarter, we made significant progress in the
integration of On Command and StayOnline into our business and
organization," said Scott C. Petersen, LodgeNet president and
chief executive officer.  "During the six months since we closed
the On Command acquisition, we have made organizational decisions
with respect to 97% of the personnel.  We are now in an
implementation mode with respect to these decisions and should be
largely completed with the organization integration by the end of
the first quarter of next year - a pace which exceeds our original
plan.  Overall, we are pleased with this progress and with the
resulting enhancement to our competitive position in the market
and the expansion of our network and customer-facing solutions."

Total direct costs increased $39.9 million to $75.9 million in the
third quarter of 2007.  Total direct costs were 53.2% of revenue
for the third quarter of 2007 as compared to 47.1% in the third
quarter of 2006.  The increase was primarily driven by higher
programming costs related to the On Command basic cable
programming business, and the lower margin inherent in the high-
speed Internet equipment sales business.

Guest Pay operations expenses increased to $15.4 million in the
third quarter of 2007 as compared to pre-acquisition LodgeNet of
$8.9 million in the third quarter of 2006.

Selling, general and administrative expenses increased
$9.0 million to $16.1 million in the current quarter.  The On
Command and StayOnline SG&A accounted for $6.3 million of the
increase.

Depreciation and amortization expenses were $34.1 million in the
third quarter of 2007.

Interest expense was $11.7 million in the current quarter versus
$6.4 million in the third quarter of 2006.  The increase resulted
from the change in outstanding long-term debt, which increased as
a result of the On Command acquisition to $623.4 million during
the third quarter of 2007 from $268.5 million in the third quarter
of 2006.

Adjusted Operating Cash Flow, a non-GAAP measure which the company
defines as Operating Income exclusive of depreciation,
amortization, share-based compensation, restructuring and
integration expenses, and the effects of Hurricane Katrina
insurance recoveries and equipment impairment, was $37.9 million.
This represented an increase of $13.0 million over the third
quarter of 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?26d2

                   About LodgeNet Entertainment

Based in Sioux Falls, South Dakota, LodgeNet Entertainment
Corporation (NASDAQ:LNET) -- http://www.lodgenet.com/-- is the
provider of media and connectivity services designed to meet the
needs of hospitality, healthcare and other visitor and guest-based
businesses.  LodgeNet serves more than 1.9 million hotel rooms
representing 9,300 hotel properties worldwide in addition to
healthcare facilities throughout the United States.  LodgeNet's
services include on demand movies, games, television programming,
music and information, along with subscription sports programming
and high-speed Internet access.  LodgeNet Entertainment
Corporation owns and operates businesses under these brands:
LodgeNet, LodgeNetRX, On Command and StayOnline.

                          *     *     *

Moody's Investor Services placed LodgeNet Entertainment
Corporation's bank loan debt rating at 'B1' in April 2007.  The
rating still holds to date with a stable outlook.


MAGUIRE PROPERTIES: S&P Cuts Corporate Credit Rating to B+
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
ratings on Maguire Properties Inc. and Maguire Properties L.P. to
'B+' from 'BB-'.  At the same time, S&P raised its bank loan
rating on Maguire Properties L.P.?s $130 million revolving credit
facility to 'BB' and raised its recovery rating on this facility
to '1' from '4'.  Finally, S&P revised its outlook on the company
to negative from stable.

"The corporate credit downgrade reflects Maguire's more
aggressively leveraged financial profile, weak common dividend
coverage, and expectations for more competitive conditions within
the company's core southern California office markets," said
credit analyst Tom Taillon.  "The improved bank loan and
recovery ratings denote our expectation for a very high recovery
of any future borrowings under the revolving credit facility,
following the earlier-than-expected refinancing of a $400 million
pari passu term loan."

Maguire's fully financed office portfolio and weak dividend
coverage will constrain liquidity in the near term, while
management distractions could hinder the company's ability to
focus on operations and achieve expected improvements in internal
cash flow.  S&P would initiate an additional downgrade
if financial coverage ratios decline further.  However, if Maguire
is successful in its efforts to re-lease a meaningful portion of
vacated space and stabilize or grow NOI, S&P would revise its
outlook back to stable.


MATTRESS GALLERY: Files Schedules of Assets and Liabilities
-----------------------------------------------------------
Gallery Corp. dba Mattress Gallery filed with the U.S. Bankruptcy
Court for the District of Delaware its schedules of assets and
liabilities disclosing:

     Name of Schedule               Assets        Liabilities
     ----------------             -----------     -----------
  A. Real Property
  B. Personal Property             $6,518,463
  C. Property Claimed as
     Exempt
  D. Creditors Holding
     Secured Claims                               $4,044,013
  E. Creditors Holding
     Unsecured Priority
     Claims                                         $230,880
  F. Creditors Holding
     Unsecured Non-priority
     Claims                                      $15,041,997
                                  -----------    -----------
     TOTAL                         $6,518,463    $19,316,892

Headquartered in Commerce, California, Gallery Corp. dba Mattress
Gallery filed for Chapter 11 protection on Nov. 1, 2007 (Bankr. D.
Del. Case No. 07-11628). Donald J. Detweiler, Esq., and Sandra
G.M. Selzer, Esq., at Greenberg Traurig, LLP, represent the Debtor
in its restructuring efforts.  The Debtors selected Kurtzman
Carson Consultants LLC as their claims and noticing agent.  The
U.S. Trustee for Region 5 has appointed five members to serve on
an Official Committee of Unsecured Creditors.  Klehr, Harrison,
Harvey, Branzburg & Ellers LLP is the Committee's proposed
counsel.  When the Debtor filed for protection from its creditors,
it listed total assets and debts between $1 million and
$100 million.


MCCLATCHY COMPANY: Posts $1.35 Billion Net Loss in Third Quarter
----------------------------------------------------------------
The McClatchy Company reported an after-tax loss from continuing
operations of $1.35 billion for the third quarter ended Sept. 30,
2007, including the effect of non-cash after-tax impairment
charges primarily related to goodwill and newspaper mastheads of
$1.37 billion.  Earnings before the charges were unchanged from
the $23.5 million as reported in the Troubled Company Reporter on
Oct. 22, 2007.

Net revenues for the three months ended Sept. 30, 2007, were
$540.3 million.

For the three months ended Sept. 30, 2006, the company reported
net income of $51.8 million on net revenues of $595.1 million.

The loss from continuing operations for the first nine months of
2007 was $1.30 billion including the effect of the non-cash
impairment charges, on net revenues of $1.69 billion.  The
company's total net loss, including the results of discontinued
operations, for the first nine months of 2007 was $1.30 billion.

This compares with net income of $123.7 million on net revenues of
$1.00 billion in the first nine months of 2006.

As reported in the Troubled Company Reporter on Oct. 22, 2007,
management performed impairment testing of goodwill and other
long-lived assets as of Sept. 30, 2007, in accordance with
Statement of Financial Accounting Standards No. 142, Goodwill and
Other Intangible Assets and due to the continuing challenging
business conditions and the resulting weakness in the company's
stock price as of the end of its third quarter.  Upon completion
of that testing, the company recorded pre-tax non-cash impairment
charges of $1.18 billion to goodwill, $250.4 million to newspaper
mastheads and $84.6 million to investments in unconsolidated
subsidiaries and other items.

Gary Pruitt, McClatchy's chairman and chief executive officer,
said "The challenging business environment, coupled with the drag
on our stock price, has resulted in our taking an impairment
charge to write down the value of goodwill, mastheads of certain
newspapers, and other assets on the company's balance sheet in the
third quarter.  However, these are non-cash accounting charges,
and nothing about them changes our operations or our ability to
reduce debt.

"As I said last month when we released our preliminary earnings,
we recognize that newspaper revenues have declined industry-wide
and that values have dropped.  We have been more affected than
most by the real estate downturn because of our operations in
California and Florida, the epicenters of the sub-prime lending
practices.  We do not know when this downturn will end, and do not
have visibility beyond the fourth quarter.  Nonetheless, we
believe that cyclical factors represent a significant portion of
the current advertising downturn as evidenced by our operations in
the California and Florida regions.

"McClatchy is a solidly profitable company that is rapidly paying
down debt and re-engineering its operations to navigate through a
changing environment for all media companies.  "We are well
positioned in markets with growth prospects better than the nation
as whole, and while that clearly doesn't make us immune to
national economic events, we believe it will serve us well when
the economy begins to recover from the real-estate led slowdown.

"Looking longer term, we like the prospects for all of our growth
markets.  We are working hard to grow revenues and will continue
to focus on cost controls to weather this downturn by remaining
efficient and protecting cash flows as best we can."

The company disclosed that about a third of the goodwill
impairment charge resulted from the accounting treatment of the
value of common stock issued in the Knight Ridder transaction,
which resulted in additional goodwill being recorded.  McClatchy
disclosed the acquisition of Knight-Ridder Inc. on March 10, 2006,
and closed the transaction on June 27, 2006.

Management has disclosed in the company's financial statements
since the third quarter of 2006, that it was required to record
the value of the 35.0 million shares of McClatchy common stock
issued in the acquisition transaction at $1.821 billion, which was
included in the total acquisition purchase price.  The fair value
of these shares was actually $1.398 billion as of the acquisition
closing date; however under the accounting rules the decline of
approximately $423.0 million in valuation had no effect on the
total acquisition purchase price recorded.  That additional
$423.0 million was included in goodwill.

                          Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet showed
$5.89 billion in total assets, $4.07 billion in total liabilities,
and $1.82 billion 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?26d0

                   About The McClatchy Company

Headquartered in Sacramento, Calif., The McClatchy Company (NYSE:
MNI) -- http://www.mcclatchy.com/-- is the third largest
newspaper company in the United States, with 31 daily newspapers,
approximately 50 non-dailies and direct marketing and direct mail
operations.  McClatchy also operates leading local websites in
each of its markets which complement its newspapers and extend its
audience reach in each market.  McClatchy-owned newspapers include
The Miami Herald, The Sacramento Bee, the Fort Worth Star-
Telegram, The Kansas City Star, The Charlotte Observer and The
(Raleigh) News & Observer.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 13, 2007,
Moody's Investors Service placed The McClatchy Company's Ba1
Corporate Family rating, Ba1 Probability of Default rating, and
associated debt ratings on review for downgrade.


MIRANT CORP: Court Enters Final Decree Closing 21 Chap. 11 Cases
----------------------------------------------------------------
Section 350(a) of the Bankruptcy Code provides that after an
estate is fully administered and the Court has discharged the
trustee, the Court will close the case.

Hence, at the New Mirant Entities' behest, the U.S. Bankruptcy
Court for the Northern District of Texas entered a final decree
closing each of the 21 Chapter 11 cases of administratively
consolidated Mirant Entities, effective on Dec. 19, 2007.

The Administered Entities are:

   Debtor                                     Case No.
   ------                                     --------
   Mirant California Investments, Inc.        03-46619
   Mirant California, LLC                     03-46620
   Mirant MD Ash Management, LLC              03-46637
   Mirant Special Procurement, Inc.           03-46650
   MLW Development, LLC                       03-46588
   Mirant Americas, Inc.                      03-46594
   Mint Farm Generation, LLC                  03-46596
   Mirant Americas Procurement, Inc.          03-46615
   Mirant Capital, Inc.                       03-46623
   Mirant Chalk Point Development, LLC        03-46625
   Mirant Dickerson Development, LLC          03-46630
   Mirant Fund 2001, LLC                      03-46631
   Mirant Intellectual Asset                  03-46633
      Management and Marketing, LLC
   Mirant Portage County, LLC                 03-46646
   Mirant Services, LLC                       03-46649
   Mirant Wichita Falls, LP                   03-46659
   Mirant Wyandotte, LLC                      03-46660
   Mirant Wrightsville Investments, Inc.      03-49548
   Mirant Wrightsville Management, Inc.       03-49556
   Wrightsville Power Facility, L.L.C.        03-49553
   Wrightsville Development Funding, L.L.C.   03-49555

Craig H. Averch, Esq., at Haynes and Boone, LLP, in Dallas,
Texas, points out that it is clear that a final decree is
appropriate in the case of each of the Administered Entities
since:

    (a) the order confirming the New Mirant Entities' Plan of
        Reorganization is final and non-appealable;

    (b) the Plan has been substantially consummated and payments
        to be made under the Plan are largely completed;

    (c) to the extent that any claims remain pending against any
        of the Administered Entities, the claims will remain
        pending against the debtor group to which the entity
        belonged, as provided for in the Plan; and

    (d) the rights of creditors will not be adversely affected by
        the closing of the Administered Entities' Chapter 11
        cases.

Mr. Averch tells Judge Lynn that under Section 1930 of the
Judiciary and Judicial Procedure Code, the Administered Entities
are incurring fees, and and will continue to incur the fees until
the Chapter 11 case of each entity is closed.

The United States Trustee for Region 6 did not oppose the
request, according to Mr. Averch.

As of the Chapter 11 Closing Effective Date, there are 17 cases
remaining in the Administratively Consolidated Cases of the New
Mirant Entities:

   Debtor                                     Case No.
   ------                                     --------
   Mirant Corporation                         03-46590
   Mirant Potomac River, LLC                  03-46647
   Mirant Americas Generation, LLC            03-46592
   Mirant New York, Inc.                      03-46641
   Mirant Bowline, LLC                        03-46618
   Mirant Lovett, LLC                         03-46636
   Mirant NY-Gen, LLC                         03-46642
   Hudson Valley Gas Corporation              03-46595
   Mirant Mid-Atlantic, LLC                   03-46593
   Mirant Chalk Point, LLC                    03-46626
   Mirant Piney Point, LLC                    03-46645
   Mirant Canal, LLC                          03-46621
   Mirant Kendall, LLC                        03-46634
   Mirant Potrero, LLC                        03-46648
   Mirant Delta, LLC                          03-46629
   Mirant Americas Energy Marketing, LP       03-46591
   Newco 2005 Corporation                     05-90365

                         PG&E Objects

Pacific Gas and Electric Company tried to block the Debtors'
request.  Pacific Gas asked Judge Lynn not to close the
bankruptcy proceedings of Mirant Delta, LLC and and Mirant
Potrero, LLC because Mirant Potrero assumed certain obligations
to indemnify PG&E for costs of work PG&E agreed to perform that
was requested by the Port of San Francisco, acting on behalf of
the City and County of San Francisco.

Jo E. Hartwick, Esq., at Stutzman Bromberg Esserman & Plifka, in
Dallas, Texas, states that Mirant Delta and Mirant Potrero, on
the one hand, and PG&E, on the other, memorialized Mirant
Potrero's agreement to indemnify PG&E in an agreement that was
subsequently approved by the Court on August 2, 2006.

Hence, PG&E sought to preserve its right to seek indemnification
pursuant to the Potrero Indemnity Obligations.

The Debtors responded that there was no reason for PG&E to object
to their Closing Motion, since the request did not include Mirant
Delta and Mirant Potrero.

                         About Mirant

Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE:
MIR) -- http://www.mirant.com/-- is an energy company that
produces and sells electricity in North America, the Caribbean,
and the Philippines.  Mirant's investments in the Caribbean
include three integrated utilities and assets in Jamaica, Grand
Bahama, Trinidad and Tobago and Curacao.  Mirant owns or leases
more than 18,000 megawatts of electric generating capacity
globally.

Mirant Corporation filed for chapter 11 protection on July 14,
2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of
a confirmed Second Amended Plan on Jan. 3, 2006.  thomas E.
Lauria, Esq., at White & Case LLP, represented the Debtors in
their successful restructuring.  When the Debtors filed for
protection from their creditors, they listed US$20,574,000,000
in assets and US$11,401,000,000 in debts.  The Debtors emerged
from bankruptcy on Jan. 3, 2006.  On March 7, 2007, the Court
entered a final decree closing 46 Mirant cases.

Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant
New York Inc., and Hudson Valley Gas Corporation, were not
included.  On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11
Plan of Reorganization and on Feb. 22 filed a Disclosure
Statement explaining that Plan.  The Court approved the adequacy
of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and
confirmed the Amended Plan on May 7, 2007.  Mirant NY-Gen
emerged from chapter 11 on May 7, 2007.

On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of
Reorganization.  The Court confirmed Mirant Lovett's Plan on
Sept. 19, 2007.  Mirant Lovett emerged from bankruptcy on
Oct. 2, 2007.

(Mirant Bankruptcy News, Issue No. 134; Bankruptcy Creditors'
Service Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                        *     *     *

As reported in the Troubled Company Reporter on Dec. 26, 2007,
Moody's Investors Service upgraded the ratings of Mirant
Corporation (Mirant: Corporate Family Rating to B1 from B2) and
its subsidiaries Mirant Mid-Atlantic, LLC (MIRMA: pass through
trust certificates to Ba1 from Ba2), Mirant North America, LLC
(MNA: senior unsecured to B1 from B2 and senior secured to Ba2
from Ba3) and Mirant Americas Generation, LLC (MAG: senior
unsecured to B3 from Caa1).  Additionally, Mirant's Speculative
Grade Liquidity (SGL) rating was revised to SGL-1 from SGL-2.
The rating outlook is stable for Mirant, MNA, MAG, and MIRMA.


MOSAIC COMPANY: Elects James L. Popowich to Board of Directors
--------------------------------------------------------------
The Mosaic Company elected James L. Popowich to its board of
directors.  Mr. Popowich, who was elected to Mosaic's board on
Dec. 14, 2007, is the president of the Canadian Institute of
Mining, Metallurgy and Petroleum.

He served as president and CEO of Elk Valley Coal Corporation in
Calgary, Alberta and president of the Fording Canadian Coal Trust
from 2004 to 2006 and he was named the Resource Person of the Year
by the Alberta Chamber of Resources.

"Jim is an important addition to our board and brings significant
experience in the mining industry," Robert L. Lumpkins, chairman
of the board, said.  "We're looking forward to benefiting from his
past experiences and to his contributions at Mosaic."

Mr. Popowich will also serve on the Environmental, health and
safety committee and the special transactions committee of
Mosaic's board of directors.

                    About The Mosaic Company

Headquartered in Plymouth, Minnesota, The Mosaic Company (NYSE:
MOS) -- http://www.mosaicco.com/-- is a producer and marketer of
concentrated phosphates and potash crop nutrients.  For the
agriculture industry, Mosaic is a single source of phosphates,
potash, nitrogen fertilizers and feed ingredients.

                         *     *     *

As reported in the Troubled Company Reporter on Nov. 6, 2007,
Fitch Ratings upgraded these ratings of The Mosaic Company:
a) issuer default rating to 'BB+' from 'BB-'; b) senior secured
revolver to 'BBB-' from 'BB+'; c) senior secured term loan to
'BBB-' from 'BB+'; and d) senior unsecured notes to 'BB+' from
'BB'.


MTI TECHNOLOGY: Asks Court to Set April 4 as Claim Bar Date
-----------------------------------------------------------
MTI Technology Corporation asks the United States Bankruptcy Court
for the Central District of California to establish April 4, 2008,
as deadline for creditors to file their proof of claims.

The Debtor proposes that all proofs of claims be filed, by hand
delivery or mail, with the Court at 411 West Fourth Street in
Santa Ana, California.

According to the Debtor, the April 4 deadline will provide enough
time to creditors to file necessary interest and will provide more
time for confirmation and implementation of a Chapter 11 plan.

The Debtor has yet to set a claims filing deadline for
governmental units.

The Debtor proposes to fix May 30, 2008, as claims objection
deadline.

Headquartered in Tustin, California, M.T.I. Technology Corp. --
http://www.mti.com/-- provides professional services and data
storage for mid- to large-sized organizations.  In addition, the
company owns all of the issued and outstanding share capital of
three European subsidiaries: MTI Technology GmbH in Germany, MTI
Technology Limited in Scotland and MTI France S.A.S. in France.

The company filed for Chapter 11 protection on Oct. 15, 2007
(Bankr. C.D. Calif. Case No. 07-13347).  Scott C. Clarkson, Esq.,
at Clarkson, Gore & Marsella, A.P.L., represents the Debtor.
Omni Management Group LLC serves as the Debtor's claim, noticing
and balloting agent.  The U.S. Trustee for Region 16 appointed
nine creditors to serve on an Official Committee of Unsecured
Creditors in the Debtor's case.  As of July 7, 2007, the Debtor
had total assets of $64,002,000 and total debts of $58,840,000.


MUSICLAND HOLDING: Court Moves Show Cause Hearing to January 24
---------------------------------------------------------------
At the hearing held Dec. 11, 2007, Judge Stuart M. Bernstein of
the U.S. Bankruptcy Court for the Southern District of New York
issued an oral Order to Show Cause, returnable on Jan. 15, 2008,
as to why the Musicland Holding Corp. and its debtor affiliates'
cases should not be dismissed or converted based on the inability
to confirm a plan.

Judge Bernstein directed the Debtors to provide notice of the OSC
Hearing to ensure all parties-in-interest will have more than the
required 20 days notice.

Following the December 11 Hearing, however, the Debtors, the
Official Committee of Unsecured Creditors, the Informal Committee
of Secured Trade Vendors, and Wachovia Bank, N.A., made
significant progress in negotiating the terms of a consensual
confirmation order with respect the Debtors' Second Amended Joint
Plan of Liquidation, L.P. Harrison 3rd, Esq., at Curtis, Mallet-
Prevost, Colt & Mosle LLP, in New York, disclosed.

In light of the progress made, and in order to avoid incurring
the administrative expenses associated with providing notice of
the OSC Hearing, which would not be an insignificant
administrative cost, the Debtors asked the Court for a short
adjournment of the OSC hearing to January 24, 2008.

"We anticipate that this brief adjournment will be sufficient to
allow the parties to conclude our negotiations and submit a
proposed consensual confirmation order to Your Honor before
notice of the OSC Hearing would be required to be served on the
parties-in-interest," said Mr. Harrison.

Accordingly, Judge Bernstein adjourned the OSC Hearing to
January 24, 2008.

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  At March 31, 2007, the Debtors
disclosed $20,121,000 in total assets and $321,546,000 in total
liabilities.

On May 12, 2006, the Debtors filed their Joint Plan of Liquidation
with the Court.  On Sept. 14, 2006, they filed an amended Plan and
a Second Amended Plan on Oct. 13, 2006.  The Court approved the
adequacy of the Amended Disclosure Statement on Oct. 13, 2006.
The hearing to consider confirmation of the 2nd Amended Joint Plan
started on Nov. 28, 2006.

(Musicland Bankruptcy News, Issue No. 44; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


NATIONAL RV: U.S. Trustee Appoints Seven Member Creditors Panel
---------------------------------------------------------------
The U.S. Trustee of Region 16 appointed seven creditors to serve
on an Official Committee of Unsecured Creditors in National RV
Holdings Inc. and its debtor-affiliates' Chapter 11 cases.

The Creditors Committee members are:

     a) Don Ray Drive-A-Way, Inc.
        c/o Edwin J.Simcox, Esq.
        4259 South Shelby Street
        Indianapolis, In 46227
        Tel: (317) 634-8313

     b) Ron D. Belk, President
        Kustom Fit Manufacturing
        8990 South Atlantic Avenue
        (323) 564-4481

     c) Giant RV
        Attn: Petee Kravitz, Vice President
        9150 Benson Avenue
        Montclair, CA 91763
        Tel: (919) 981-0444

     d) Jacob Rowan, Sales Manager/Director
        R&I Industries Inc.
        1876 Taylor Place
        Ontario, CA 91761
        Tel: (714) 720-6611

     e) Greg Weber, Credit Manager
        The Domestic Corp.
        509 South Poplar Street
        La Grange, IN 46761
        Tel: (260) 463-7673

     f) Steve Ardia, Owner
        The Cutting Edge Wood Tech
        130 North Gilbert Street
        Fullerton, CA 92833
        Tel: (714) 329-4845

     g) Russell Rodeghero, President
        Lami Plast Inc.
        22730 Hawthorne Boulevard Suite 208
        Torrance, CA 90505
        Tel: (310) 729-8311

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtor's expense.  They may investigate the Debtor's business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes reorganization of the Debtor is impossible,
the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.

Headquartered in Perris, California, National R.V. Holdings
Inc. (Pink Sheets: NRVH) -- http://www.nrvh.com/-- through its
wholly owned subsidiary, National RV Inc., produces motorized
recreational vehicles.  National RV designs, manufactures and
markets Class A gas and diesel motorhomes under model names Surf
Side, Sea Breeze, Dolphin, Tropi-Cal, Pacifica and Tradewinds.

The companies filed for Chapter 11 protection on Nov. 30, 2007
(Bankr. C.D. Calif. Lead Case No. 07-17937).  David Guess, Esq.,
at Klee Tuchin Bogdanoff & Stern LLP, represents the Debtors in
their restructuring efforts.  The Debtors selected OMNI Management
Group LLC as their claim, notice and balloting agent.

When the Debtors filed for protection against their creditors,
they listed total assets of $54,442,000 and total debts of
$30,128,000.


NORTHLAKE CDO: Moody's May Cut Ratings Due to Poor Credit Quality
-----------------------------------------------------------------
Moody's Investors Service placed these notes issued by Northlake
CDO I, Limited on review for possible downgrade:

Class Description: $45,000,000 Class II Floating Rate Notes due
2038

  -- Prior Rating: Aa2
  -- Current Rating: Aa2, on review for possible downgrade

In addition Moody's also downgraded and left on review for
possible downgrade these notes:

Class Description: $14,500,000 Class III Floating Rate Notes due
2038

  -- Prior Rating: Baa2
  -- Current Rating: B1, 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 consists primarily of structured
finance securities.


ORCHID STRUCTURED: Poor Credit Quality Cues Moody's Ratings Review
------------------------------------------------------------------
Moody's Investors Service placed these notes issued by Orchid
Structured Finance CDO, Ltd. on review for possible downgrade:

Class Description: $32,500,000 Class A-2 Flaoting Rate Term Notes

  -- Prior Rating: Aa1
  -- Current Rating: Aa1, on review for possible downgrade

Class Description: $19,375,000 Class B Floating Rate Term
Notes

  -- Prior Rating: Ba2
  -- Current Rating: Ba2, on review for possible downgrade

Class Description: $6,250,000 Class C-1 Floating Rate Term Notes

  -- Prior Rating: Caa3
  -- Current Rating: Caa3, on review for possible downgrade

Class Description: $5,000,000 Class C-2 Fixed Rate Term Notes

  -- Prior Rating: Caa3
  -- Current Rating: Caa3, 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 consists primarily of structured
finance securities.


PASSPORT CARPETS: Case Summary & 20 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Passport Carpets, Inc.
        P.O. Box 305
        Calhoun, GA 30701

Bankruptcy Case No.: 08-40023

Type of Business: The Debtor is a manufacturer and distributor of
                  vinyl-backed and rubber-backed entrance matting.
                  See http://www.passportcarpets.com

Chapter 11 Petition Date: January 4, 2008

Court: Northern District of Georgia (Rome)

Debtor's Counsel: John A. Christy, Esq.
                  Paul E. Vranicar, Esq.
                  Schreeder, Wheeler & Flint, L.L.P.
                  1100 Peachtree Street, Suite 800
                  Atlanta, GA 30309-4516
                  Tel: (404) 681-3450
                  Fax: (404) 681 1046

Estimated Assets:   $500,000 to $1 Million

Estimated Debts: $1 Million to $10 Million

Debtor's 20 Largest Unsecured Creditors:

   Entity                      Nature of Claim       Claim Amount
   ------                      ---------------       ------------
MarChem Southeast              trade debt            $1,027,224
P.O. Box 952177
St. Louis, MO 63195

Teknor Apex                    trade debt            $368,000
505 Central Avenue
Pawtucket, RI 02861

Kleen Tex                      trade debt            $130,912
P.O. Box 933453
Atlanta, GA 31193

U.P.S. Freight                 trade debt            $124,382

Federal Express                trade debt            $50,030

Lagasse                        trade debt            $42,000

Georgia Department of Labor    trade debt            $40,000

Calhoun Plastics               trade debt            $36,690

U.S. Mat and Rubber            trade debt            $26,836

North Georgia Warehousing      trade debt            $26,000

Terminus Transportation        trade debt            $23,020

Multy Industries-F.P.G.        trade debt            $20,637

M.X. Energy                    trade debt            $20,388

Delaware Valley                trade debt            $19,496

Accountemps                    trade debt            $19,180

Dalton Box                     trade debt            $17,794

S.R.C. Networking              trade debt            $17,473

Syntec Industries              trade debt            $12,525

Charles Bearden, C.P.A.        trade debt            $12,513

Shaw Industries                trade debt            $12,396


PROTECTIVE FINANCE: Moody's Holds Ba2 Ratings on 3 Cert. Classes
----------------------------------------------------------------
Moody's Investors Service upgraded these ratings of 12 classes and
affirmed these ratings of six classes of Protective Finance
Corporation II, Commercial Mortgage FASIT Certificates, Series I:

  -- Class A-1-1, $14,576,365, upgraded to Aaa from Aa2
  -- Class A-1-2, $5,318,939, upgraded to Aaa from Aa2
  -- Class A-1-3, $13,869,999, upgraded to Aaa from Aa2
  -- Class A-2-1, $8,069,768, upgraded to Aaa from Aa2
  -- Class A-2-2, $19,978,382, upgraded to Aaa from Aa2
  -- Class A-2-3, $1, upgraded to Aaa from Aa2
  -- Class B-1, $21,938,172, upgraded to Aaa from Aa2
  -- Class B-2, $2,651,212, upgraded to Aaa from Aa2
  -- Class B-3, $8,619,834, upgraded to Aaa from Aa2
  -- Class C-1, $17,550,537, upgraded to Aaa from Aa3
  -- Class C-2, $4,306,694, upgraded to Aaa from Aa3
  -- Class C-3, $11,351,987, upgraded to Aaa from Aa3
  -- Class D-1, $26,325,806, affirmed at A1
  -- Class D-2, $6,460,039, affirmed at A1
  -- Class D-3, $4,113,286, affirmed at A1
  -- Class E-1, $13,162,903, affirmed at Ba2
  -- Class E-2, $3,230,020, affirmed at Ba2
  -- Class E-3, $5,746,556, affirmed at Ba2

As of the Dec. 26, 2007 distribution date, the transaction's
aggregate certificate balance has decreased by approximately 75.3%
to $208.7 million from $845.4 million at securitization.   The
FASIT is collateralized by a static pool of 183 loans or loan
groups ranging in size from less than 1.0% to 6.1% of the pool,
with the top ten loan groups representing 26.9% of the pool.  The
loans were originated by Protective Life Insurance Company.

Two loans have been liquidated from the pool resulting in an
aggregate realized loss of approximately $752,900. There are no
loans in special servicing at this time.

Moody's was provided with year-end 2006 operating results for
97.5% of the pool.  Moody's weighted average loan to value ratio
is 50.1%, compared to 57.5% at Moody's last full review in October
2006.  Moody's is upgrading Classes A-1-1, A-1-2, A-1-3, A-2-1, A-
2-2, A-2-3, B-1, B-2, B-3, C-1, C-2, and C-3 due to increased
subordination levels and overall improved pool performance.

Approximately 55.8% of the loans are secured by single tenant
retail properties, many of which are owner occupied.  The top
three exposures are Rite Aid Corporation (11.8%; Moody's senior
unsecured rating Caa1/Caa2, stable outlook), Ingles Markets, Inc.
(9.5%; Moody's LT corporate family rating B1, stable outlook) and
CVS/Caremark Corp. (7.5%; Moody's senior unsecured rating Baa2,
stable outlook).  Approximately 87.0% of the loans are self
amortizing over their respective loan terms.

The top three loan exposures represent 13.2% of the pool.  The
largest exposure is a portfolio of Ingles Market loans
($13.2 million -- 6.1%), which is secured by nine Ingles Market
grocery stores located in Alabama (1), Tennessee (3) and Georgia
(5).  The properties total 389,000 square feet.  Moody's LTV is
52.7%, compared to 57.5% at last review.

The second largest exposure is a portfolio of Ingles Market loans
($9.8 million -- 4.5%), which is secured by three Ingles Market
grocery stores located in Georgia.  The properties total 167,000
square feet.  Moody's LTV is 66.1%, compared to 70.4% at last
review.

The third largest exposure is the Chancellor Shopping Center loan
($5.6 million -- 2.6%), which is secured by an 115,000 square foot
retail center located in Fredericksburg, Virginia.   The property
is 100.0% occupied and is anchored by Food Lion.   Moody's LTV is
55.3%, compared to 59.2% at last review.


QT INC: Appellate Court Upholds Ruling on Q-Ray Bracelets
---------------------------------------------------------
The 7th U.S. Circuit Court of Appeals upheld Thursday, a judgment
against QT Inc., Ameet Sachdev of the Chicago Tribune reports.

According to the Chicago Tribune, the therapeutic claims by the
company's Q-Ray ionized bracelet was a "form of fraud."  In an
opinion, chief judge Frank Easterbrook said that the company made
statements about the bracelet that went beyond what was actually a
placebo effect, the Tribune adds.

The company had sold the bracelets for $50 to $250 each claiming
that it could relieve pain caused by almost anything.  In 2003,
the Federal Trade Commission filed a suit against the company and
its chief executive,  Que Te "Andrew" Park, for false advertising.
The Tribune relates that according to the FTC, a Mayo Clinic study
had shown that the bracelets "worked no better than a placebo."

In September 2006, U.S. Magistrate Judge Morton Denlow ordered the
company to give up around $22.5 million in profits as well as give
a full refund to those who purchased the product on the Internet.

In its appeal, the Tribune further relates, the company contended
that the magistrate judge subjected the claims to what was an
excessive and rigorous standards of proof.  Further, the company
said, the judge should have overlooked the placebo effect since
some pf those who bought the product did benefit, the Tribune
adds.

The Tribune discloses that calls to the company's in-house
lawyers, as well as outside counsel was not returned.

                          About QT Inc.

QT, Inc., manufactures the Q-Ray ionized bracelet.  The company,
along with it affiliate Q-Ray Company, filed for Chapter 11
protection on Feb. 23, 2007 (Bankr. N.D. Ill. Case Nos. 07-03227 &
07-03228).  The company's president, Que Te Park, also filed for
Chapter 11 protection on February 23 (Bankr. N.D. Ill. Case No.
07-03217).  Chad J Husnick, Esq., at Kirkland & Ellis LLP, and
Douglas C. Giese, Esq., at Defrees & Fiske LLC, represent the
Debtors.  No Official Committee of Unsecured Creditors has been
appointed to date in the Debtors' bankruptcy proceedings.  The
Court appointed Catherine Steege, Esq., at Jenner & Block LLP, as
the Chapter 11 Trustee on June 19, 2007.

In its list of its 27 largest unsecured creditors, QT Inc.
disclosed that it owed the Federal Trade Commission approximately
$87,019,840.


RAMP SERIES 2004: Moody's Junks Ratings on Three Trust Classes
--------------------------------------------------------------
Moody's Investors Service downgraded 21 classes issued by RAMP
Series in 2004.  The actions are based on the analysis of the
credit enhancement provided by subordination,
overcollateralization and excess spread relative to the expected
loss.

The actions are driven by the existing credit enhancement levels
that may be low given the current projected losses on the
underlying pools.

The pool factor for each group in the transactions is: RAMP Series
2004-RS1 Trust (Group I 29.99%, Group II 8.47%), RAMP Series 2004-
RS2 Trust (Group I 33.82%, Group II 10.23%), RAMP Series 2004-RS4
Trust (Group I 35.15%, Group II 13.69%), RAMP Series 2004-RS5
Trust (Group I 38.45%, Group II 13.69%), RAMP Series 2004-RS8
Trust (Group I 42.99%, Group II 19.00%).

Complete rating actions are:

Issuer: RAMP Series 2004-RS1 Trust

  -- M-I-4, Downgraded to Ba3 from Baa2;
  -- M-II-2, Downgraded to Baa2 from A2;
  -- M-II-3, Downgraded to Baa3 from A3;
  -- M-II-4, Downgraded to Ba3 from Baa1;
  -- M-II-5, Downgraded to B1 from Baa2;
  -- M-II-6, Downgraded to Ca from Baa3;

Issuer: RAMP Series 2004-RS2 Trust

  -- Cl. M-II-2, Downgraded to Baa2 from A2;
  -- Cl. M-II-3, Downgraded to Baa3 from A3;
  -- Cl. M-II-4, Downgraded to Ba1 from Baa1;
  -- Cl. M-II-5, Downgraded to B3 from Baa2;
  -- Cl. M-II-6, Downgraded to Ca from Baa3;

Issuer: RAMP Series 2004-RS4 Trust

  -- Cl. M-II-2, Downgraded to Baa3 from A2;
  -- Cl. M-II-3, Downgraded to Ba3 from A3;
  -- Cl. M-II-4, Downgraded to B2 from Baa1;
  -- Cl. M-II-5, Downgraded to Ca from Baa2;

Issuer: RAMP Series 2004-RS5 Trust

  -- Cl. M-II-2, Downgraded to Baa2 from A2;
  -- Cl. M-II-3, Downgraded to Baa3 from A3;
  -- Cl. M-II-4, Downgraded to Ba3 from Baa1;
  -- Cl. M-II-5, Downgraded to B3 from Baa2;

Issuer: RAMP Series 2004-RS8 Trust

  -- Cl. M-II-4, Downgraded to Ba1 from Baa1;
  -- Cl. M-II-5, Downgraded to B3 from Baa2.


RAMP SERIES 2004-KR1: Moody's Junks Ratings on Two Trust Classes
----------------------------------------------------------------
Moody's Investors Service downgraded 10 classes issued by RAMP
Series 2004-KR1 and RAMP Series 2004-KR2 Trusts.  The actions are
based on the analysis of the credit enhancement provided by
subordination, overcollateralization and excess spread relative to
the expected loss.

The actions are driven by the existing credit enhancement levels
that may be low given the current projected losses on the
underlying pools.  Overcollateralization has declined due to
stepdown and losses in both transactions.  The current pool
factors as of December remittance reports for the transactions
are: RAMP Series 2004-KR1 Trust (Group I 10.16%, Group II 8.60%),
RAMP Series 2004-KR2 Trust (Group I 15.02%, Group II 11.80%).

Complete rating actions are:

Issuer: RAMP Series 2004-KR1 Trust

  -- Class M-I-3, downgraded to Baa3 previously A3;
  -- Class M-I-4, downgraded to B1 previously Baa1;
  -- Class M-I-5, downgraded to B3 previously Baa2;
  -- Class M-I-6, downgraded to Ca previously Baa3;
  -- Class M-II-2, downgraded to Baa1 previously A2;
  -- Class M-II-3, downgraded to Caa1 previously Baa2;

Issuer: RAMP Series 2004-KR2 Trust

  -- Class M-I-4, downgraded to Ba1 previously Baa1;
  -- Class M-I-5, downgraded to B2 previously Baa2;
  -- Class M-II-2, downgraded to Baa1 previously A2;
  -- Class M-II-3, downgraded to B2 previously Baa2.


RAMP SERIES 2004-KR2: Two Trust Classes Gets Moodys's Junk Ratings
------------------------------------------------------------------
Moody's Investors Service downgraded 10 classes issued by RAMP
Series 2004-KR1 and RAMP Series 2004-KR2 Trusts.  The actions are
based on the analysis of the credit enhancement provided by
subordination, overcollateralization and excess spread relative to
the expected loss.

The actions are driven by the existing credit enhancement levels
that may be low given the current projected losses on the
underlying pools.  Overcollateralization has declined due to
stepdown and losses in both transactions.  The current pool
factors as of December remittance reports for the transactions
are: RAMP Series 2004-KR1 Trust (Group I 10.16%, Group II 8.60%),
RAMP Series 2004-KR2 Trust (Group I 15.02%, Group II 11.80%).

Complete rating actions are:

Issuer: RAMP Series 2004-KR2 Trust

  -- Class M-I-4, downgraded to Ba1 previously Baa1;
  -- Class M-I-5, downgraded to B2 previously Baa2;
  -- Class M-II-2, downgraded to Baa1 previously A2;
  -- Class M-II-3, downgraded to B2 previously Baa2.


Issuer: RAMP Series 2004-KR1 Trust

  -- Class M-I-3, downgraded to Baa3 previously A3;
  -- Class M-I-4, downgraded to B1 previously Baa1;
  -- Class M-I-5, downgraded to B3 previously Baa2;
  -- Class M-I-6, downgraded to Ca previously Baa3;
  -- Class M-II-2, downgraded to Baa1 previously A2;
  -- Class M-II-3, downgraded to Caa1 previously Baa2.


RITCHIE RISK: Court Approves Deal on Life Settlement Policies
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved an agreement between Ritchie Risk-Linked Strategies
Trading (Ireland) Ltd. I and II and Coventry First LLC for the
resolution of outstanding issues related to life settlement
policies purchased by Ritchie.

As reported in the Troubled Company Reporter on Dec. 19, 2007,
Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and
Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd. were
contesting Coventry First LLC's ownership of the files containing
information about more than 1,000 life insurance policies the
Debtors plan to sell.

The Debtors asked the U.S. Bankruptcy Court to determine who
rightfully owns the files arguing that they cannot sell the
policies for an acceptable price without those files.

Coventry, the seller of the policies, contended that it never
sold the files to the Debtors.

"I am pleased the agreement includes significant safeguards to
make certain the insureds' identities remain confidential," Alan
H. Buerger, Coventry's chief executive officer, said.

"As the leader and creator of the secondary market for life
insurance, Coventry has been at the forefront of seeking privacy
protections for the insureds.  From my point of view,
having this issue dealt with in a responsible way by the parties
was of paramount importance," Mr. Buerger added.

As part of the agreement, Ritchie will pay Coventry $10 million
and the parties agreed to mutual releases of all claims against
one another in the bankruptcy litigation. U.S. Bankruptcy Judge
Burton Lifland approved the agreement at a January 3 hearing in
Manhattan.

                         About Coventry

Based in Fort Washington, Pennsylvania, Coventry First LLC --
http://www.coventry.com/-- bridges insurance and capital markets
to create groundbreaking products for the financial services
industry.  The company is in the secondary market for life
insurance and pioneered the resulting life settlement industry.

              About Ritchie Risk-Linked Strategies

Based in Dublin, Ireland, Ritchie Risk-Linked Strategies Trading
(Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading
(Ireland) II Ltd. -- http://www.ritchiecapital.com/-- are Dublin-
based funds of hedge fund group Ritchie Capital Management LLC.
The Debtors were formed as special purpose vehicles to invest in
life insurance policies in the life settlement market.

The Debtors filed for Chapter 11 protection on June 20, 2007
(Bankr. S.D.N.Y. Case Nos. 07-11906 and 07-11907).  Allison H.
Weiss, Esq., David D. Cleary, Esq., and Lewis S. Rosenbloom, Esq.,
at LeBoeuf, Lamb, Greene & MacRae, LLP represent the Debtors in
their restructuring efforts.  No Official Committee of Unsecured
Creditors has been appointed to date.  When the Debtors filed for
bankruptcy, they listed estimated assets and debts of more than
$100 million.  The Debtors' exclusive period to file a Chapter 11
plan expires on Jan. 16, 2008.


SATURN VENTURES: Moody's Reviews Ba1 Rating for Possible Cut
------------------------------------------------------------
Moody's Investors Service downgraded and left on review for
possible downgrade these notes issued by Saturn Ventures I, Ltd.:

Class Description: $20,000,000 Class B Floating Rate Subordinate
Notes Due 2038

  -- Prior Rating: A3
  -- Current Rating: Ba1, 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 consists primarily of structured
finance securities.


SCO GROUP: Wants Until May 11 to File Chapter 11 Plan
-----------------------------------------------------
The SCO Group Inc. and its debtor-affiliates ask the United States
Bankruptcy Court for the District of Delaware to futher extend
their exclusive periods to:

   a) file a Chapter 11 plan until May 11, 2008; and

   b) solicit acceptances of that plan until July 11, 2008.

The Debtors' exclusive period to file a plan expires on Saturday,
Jan. 12, 2008.

The Debtors tell the Court that they need more time to resolve an
issue regarding Novell Inc.'s rights in connection with the sale
of the Unix business.  The Debtor said that Novell objected to the
sale of that business and that the asset was a threshold issue
that must be determined before any sale.

Accordingly, the Debtors say that they have decided to allow the
dispute to narrow before they file a Chapter 11 plan.

The Debtors remind the Court that Novell obtained permission to
prosecute its counterclaim against the Debtor in the United States
Bankruptcy Court for the District of Utah.

A hearing on Feb. 5, 2008, at 10:00 a.m., has been set to consider
approval on the Debtors' request.  Objections to the approval are
due Jan. 29, 2008.

Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/-- provides
software technology for distributed, embedded and network-based
systems, offering SCO OpenServer for small to medium business and
UnixWare for enterprise applications and digital network services.

The company and its affiliate, SCO Operations Inc., filed for
Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case
No. 07-11337).  Epiq Bankruptcy Solutions, LLC, acts as the
Debtors' claims and noticing agent.  The United States Trustee
failed to form an Official Committee of Unsecured Creditors in
these cases due to insufficient response from creditors.  The
Debtors' exclusive period to file a chapter 11 plan expires on
March 12, 2008.  The Debtors' schedules of assets and liabilities
showed total assets of $9,549,519 and total liabilities of
$3,018,489.


SOFA EXPRESS: U.S. Trustee Appoints Seven Member Creditors Panel
----------------------------------------------------------------
Richard F. Clippard, the U.S. Trustee for Region 8 appointed seven
creditors to serve on an Official Committee of Unsecured Creditors
in Sofa Express Inc.'s Chapter 11 case.

The Creditors Committee members are:

     a) Spring Air Company
        Attn: Michael Chitty
        1111 Nicholas Boulevard
        Elk grove, IL 60007
        Tel: (513) 662-6208
        Fax: (813) 685-7134

     b) BB&T Commercial Finance
        Attn: Jeff Frisina
        950 East Paces Ferry Road
        Atlanta,GA 30326
        Tel: (404) 442-5203
        Fax: (404) 442-5091

     c) Steinworld, LLC
        Attn: Lisa Marden
        1721 Latham Street
        Memphis, TN 38106
        Tel: (901) 251-8371
        Fax: (901) 251-8395

     d) Magnussen Home Furnishings, Inc.
        Attn: Geoffrey Laflamme
        66 Hincks Street, Unit #1
        New Hamburg
        Ontario, Canada N3A2A3
        Tel: (519) 662-3040
        Fax: (519) 662-3733

     e) G.P.P. Inc.
        Attn: Christopher Nolan
        1330 Wall Avenue
        Pitcairn, PA 15140
        Tel: (412) 372-2233
        Fax: (412) 327-1859

     f) Vertis, Inc.
        Attn: Luke Brandonisio
        250 W. Pratt Street
        Baltimore, MD 21201
        Tel: (410) 361-8659
        Fax: (410) 454-8475

     g) WCMH NBC 4
        Attn: Eric Ongaro
        3165 Olentangy River Road
        Columbus, OH 43202
        Tel: (614) 261-4750
        Fax: (614) 447-9107

Official creditors' committees have the right to employ legal
and accounting professionals and financial advisors, at the
Debtor's expense.  They may investigate the Debtor's business
and financial affairs.  Importantly, official committees serve
as fiduciaries to the general population of creditors they
represent.  Those committees will also attempt to negotiate the
terms of a consensual Chapter 11 plan -- almost always subject
to the terms of strict confidentiality agreements with the
Debtors and other core parties-in-interest.  If negotiations
break down, the Committee may ask the Bankruptcy Court to
replace management with an independent trustee.  If the
Committee concludes reorganization of the Debtor is impossible,
the Committee will urge the Bankruptcy Court to convert the
Chapter 11 cases to a liquidation proceeding.

Headquartered in Groveport, Ohio, Sofa Express Inc. is a furniture
retailer.  The company filed for Chapter 11 protection on Dec. 6,
2007 (Bankr. M.D. Tenn. Case No. 07-09024).  William L. Nortor
III, Esq., at Boult, Cummings, Conners & Berry PLC, represents the
Debtor.  When the Debtor filed for bankruptcy, it listed assets
between $10 million to $50 million, and debts between $50 million
and $100 million.


SOUTHWESTERN ENERGY: S&P Puts BB+ Rating on Proposed $400MM Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB+' senior
unsecured rating to the proposed $400 million senior notes due
2018 of oil and gas exploration and production company
Southwestern Energy Co. (BB+/Stable/--).

Proceeds from the notes offering will be used to repay outstanding
borrowings under Southwestern's $1 billion credit facility with
$594 million outstanding as of Sept. 30, 2007.

"The 'BB+' corporate credit rating on Southwestern incorporates
the company's participation in the highly competitive, cyclical,
and capital-intensive E&P segment of the oil and natural gas
industry, limited asset diversity, and very aggressive near-term
spending levels," said Standard & Poor's credit analyst Paul B.
Harvey.

However, current ratings benefit from the company's competitive
cost structure and good reserve life.  Also, a substantial hedging
program and the successful development of the company's holdings
in the Fayetteville Shale to-date somewhat offset market
volatility.

                           Ratings List

                      Southwestern Energy Co.

   Corporate Credit Rating                BB+/Stable/--

                            New Rating

   Senior Unsecured $400 million
    senior notes due 2018                      BB+


SUNDALE LTD: Section 341(a) Creditors Meeting Set for January 17
----------------------------------------------------------------
A meeting of Sundale Ltd.'s creditors will be held on Jan. 17,
2008, at 2:00 p.m. in Room 1021 at 51 SW First Avenue in Miami,
Florida.

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.

Headquartered in Miami, Florida, Sundale Ltd. fka Sundale
Associates Ltd. is an operative builder.  The company filed for
Chapter 11 protection on Dec. 12, 2007 (S.D. Fla. Case No. 07-
21016).  Peter D. Russin, Esq., at Meland, Russin & Budwick PA,
represents the Debtor.  When the Debtor filed for protection
from its creditors, it listed assets between $50 million and
$100 million and debts between $10 million and $50 million.


SYNOVA HEALTHCARE: Obtains Interim OK to Use Cash Collateral
------------------------------------------------------------
Synova Healthcare Group Inc. and its debtor-affiliates obtained
interim authority from the Honorable Kevin Gross of the U.S.
Bankruptcy Court for the District of Delaware to use the cash
collateral of its 17 secured lenders.

Early in 2007, the Debtors obtained a loan from these lenders in
the principal amount of $15 million, for which the Debtors issued
senior convertible promissory notes.  The lenders selected
Plainfield Direct LLC as their agent.

The parties then entered into an agreement which purports to grant
the lenders a security interest in virtually all of the Debtors'
assets, including the Debtors' accounts, inventory, general
intangibles, and other collateral that may result in cash
collateral.

The Debtors said that they need immediate usage of the cash
collateral to continue their business operations without
interruption, toward the objective of selling all assets or
formulating an effective plan of reorganization.

However, Plainfield Direct objected to the cash collateral access,
saying that the Debtors are unable to provide Plainfield with
adequate protection of its interest in cash collateral.
Plainfield explained that, upon its preliminary review of a
certain purchase agreement between the Debtors and PAV Nova Inc.,
adequate protection of its interests is further lacking as the
transactions contemplated will result in the further dissipation
and diminution in value of Plainfield's cash collateral.

The Court gave the Debtors authority to use the cash collateral on
a limited basis to pay the following amounts:

   1) an amount not to exceed $2,669 for payment of necessary
      accounts payable; and

   2) a sum not more than $31,941 to XPEDX, an unsecured creditor,
      for post-petition services.

                     About Synova Healthcare

Based in Media, Pennsylvania, Synova Healthcare Group,
Inc. -- http://www.synovahealthcare.com/-- through its
subsidiaries, is focused on the development, distribution,
marketing and sale of women's healthcare products related to
contraception, vaginal health, menopause management, fertility
planning, obstetrics and personal care.  Synova markets and sells
products under the brand names Today(R) and Fem-V(R).

The company and its affiliates filed for Chapter 11 protection on
Dec. 18, 2007 (Bankr. D. Del. Lead Case No. 07-11889).  Anthony M.
Saccullo, Esq., Edward J. DiDonato, Esq., and Daniel K. Astin,
Esq., at Fox Rothschild, LLP, represent the Debtors in their
restructuring efforts.  The Debtors' consolidated financial
condition as of Dec. 18, 2007 reflected total assets of
$21,261,454, and total liabilities of $26,815,000.


SYNOVA HEALTHCARE: Wants to Hire Fox Rothschild as Bankr. Counsel
-----------------------------------------------------------------
Synova Healthcare Group Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware for permission
to employ Fox Rothschild LLP as their general bankruptcy counsel.

Fox Rothschild will:

   a) provide legal advice with respect to the Debtors' powers and
      duties as debtors-in-possession in the continued operation
      of their businesses, management of their property and
      administration of their estates;

   b) take necessary action to protect and preserve the Debtors'
      estates, including the prosecution of actions on behalf of
      the Debtors and the defense of actions commenced against the
      Debtors;

   c) prepare, present and respond to, on behalf of the Debtors,
      necessary applications, answers, orders, reports and other
      legal papers in connection with the administration of their
      estates;

   d) consult with the Debtors' management in connection with any
      actual or potential transaction involving the Debtors, and
      the operating, financial and other business matters relating
      to the ongoing activities of the Debtors;

   e) negotiate and prepare, on the Debtors' behalf, a plan of
      reorganization or liquidation, disclosure statement, and all
      related agreements and documents, and take any necessary
      action on behalf of the Debtors to obtain confirmation of
      such plan;

   f) attend meetings and negotiations with representatives of
      creditors and other parties in interest and advising and
      consulting on the conduct of the cases;

   g) advise the Debtors with respect to bankruptcy law aspects of
      any proposed sale or other disposition of assets;

   h) advise and represent the Debtors with respect to general
      corporate, transactional and related issues as well as with
      respect to any other non-bankruptcy law matters and issues;

   i) perform any other legal services for the Debtors, in
      connection with these Chapter 11 cases, except those
      requiring specialized expertise which the firm is not
      qualified to render and for which special counsel will be
      retained.

Edward J. DiDonato, Esq., a partner at Fox Rothschild, tells the
Court that the firm's professionals bill:

      Professionals                      Hourly Rate
      -------------                      -----------
      Daniel K. Astin, Esq.                 $480
      Edward J. DiDonato, Esq.              $435
      Anthony M. Saccullo, Esq.             $360
      Joshua T. Klein, Esq.                 $280
      Carl D. Neff, Esq.                    $235
      Valerie Frew (paralegal)              $200

Mr. DiDonato assures the Court that the firm is disinterested, as
that term is defined in Section 101(14) of the U.S. Bankruptcy
Code.

Mr. DiDonato can be contacted at:

      Edward J. DiDonato, Esq.
      Fox Rothschild LLP
      2000 Market Street, 10th Floor
      Philadelphia, PA 19103
      Tel: (215) 299-2000
      Fax: (215) 299-2150
      http://www.foxrothschild.com/

                     About Synova Healthcare

Based in Media, Pennsylvania, Synova Healthcare Group,
Inc. -- http://www.synovahealthcare.com/-- through its
subsidiaries, is focused on the development, distribution,
marketing and sale of women's healthcare products related to
contraception, vaginal health, menopause management, fertility
planning, obstetrics and personal care.  Synova markets and sells
products under the brand names Today(R) and Fem-V(R).

The company and its affiliates filed for Chapter 11 protection on
Dec. 18, 2007 (Bankr. D. Del. Lead Case No. 07-11889).  Anthony M.
Saccullo, Esq., Edward J. DiDonato, Esq., and Daniel K. Astin,
Esq., at Fox Rothschild, LLP, represent the Debtors in their
restructuring efforts.  The Debtors' consolidated financial
condition as of Dec. 18, 2007 reflected total assets of
$21,261,454, and total liabilities of $26,815,000.


SYNOVA HEALTHCARE: Taps Blank Rome as Special Corporate Counsel
---------------------------------------------------------------
Synova Healthcare Group Inc. and its debtor-affiliates ask the
U.S. Bankruptcy Court for the District of Delaware for authority
to employ Blank Rome LLP as their special corporate counsel.

Blank Rome will:

   a) advise the Debtors with respect to corporate matters
      including issues involving directors, the Debtors' by-laws
      and authorization issues, and various capital related
      matters;

   b) advise and assist the Debtors as corporate counsel with the
      sale or other disposition of its assets in a fashion that is
      not duplicative of services to be provided by the general
      bankruptcy counsel, including the negotiation and drafting
      of a certain letter of intent, an asset purchase agreement,
      assisting the Debtors as may be necessary with respect to
      any auction, working with the Debtors to evaluate competing
      offers, negotiations, drafting and the final preparation of
      definitive and closing documents, agreements, insturments,
      or schedules, and representing the Debtors at closing of
      such a sale or asset disposition;

   c) advise and assist the Debtors as corporate counsel in
      respect of all matters relating to applicable federal and
      state securities or "blue sky" laws;

   d) advise and assist the Debtors as corporate counsel in
      respect to all matters relating to the FDA; and

   e) advise and assist the Debtor as corporate counsel in respect
      of all matters relating to the Debtors' intellectual
      property and related general intangibles;

Alan L. Zeiger, Esq., a partner at Blank Rome, tells the Court
that the firm's professionals bill:

   Professionals             Field                 Hourly Rate
   -------------             -----                 -----------
   Alan L. Zeiger, Esq.      Corporate                $615
   Joel C. Shapiro, Esq.     Restructuring            $595
   Jeffrey M. Taylor, Esq.   Corporate/Securities     $410
   Emily J. Barnhart, Esq.   Intellectual Prop.       $390
   Helen H. Mountain, Esq.   ecurities                $355

Mr. Zeiger assures the Court that the firm does not represent any
entity in these bankruptcy cases which has an adverse interest to
the Debtors' estates.  However, Mr. Zeiger discloses entities of
which the firm has previous/current connections with:

   1) Dudnyk Healthcare is an unsecured creditor of the Debtors.
      The firm represents Dudnyk from time to time.  At present,
      the firm has no active Dudnyk matters, and will not
      represent Dudnyk in these Chapter 11 cases.

   2) Rhodia, Inc. is an unsecured creditor of the Debtors.  The
      firm has represented Rhodia in the past and has no active
      Rhodia matters.  The firm will not represent Rhodia in these
      Chapter 11 cases.

   3) Xpedx is an unsecured creditor of the Debtors.  The firm
      represents the Official Committee of Unsecured Creditors of
      Great Commission Communities, Inc. in a Chapter 11 case
      pending before the U.S. Bankruptcy Court for the Middle
      District of Pennsylvania of which Committee Xpedx is a
      member.  Xpedx is not a client of the firm.  The firm does
      not and will not represent Xpedx in these Chapter 11 cases.

Mr. Zeiger can be contacted at:

      Alan L. Zeiger, Esq.
      Blank Rome LLP
      One Logan Square
      Philadelphia, PA 19103
      http://www.blankrome.com/

                     About Synova Healthcare

Based in Media, Pennsylvania, Synova Healthcare Group,
Inc. -- http://www.synovahealthcare.com/-- through its
subsidiaries, is focused on the development, distribution,
marketing and sale of women's healthcare products related to
contraception, vaginal health, menopause management, fertility
planning, obstetrics and personal care.  Synova markets and sells
products under the brand names Today(R) and Fem-V(R).

The company and its affiliates filed for Chapter 11 protection on
Dec. 18, 2007 (Bankr. D. Del. Lead Case No. 07-11889).  Anthony M.
Saccullo, Esq., Edward J. DiDonato, Esq., and Daniel K. Astin,
Esq., at Fox Rothschild, LLP, represent the Debtors in their
restructuring efforts.  The Debtors' consolidated financial
condition as of Dec. 18, 2007 reflected total assets of
$21,261,454, and total liabilities of $26,815,000.


TOUSA INC: Missed Interest Payments on $300MM and $185MM Sr. Notes
------------------------------------------------------------------
TOUSA Inc. failed to make its semi-annual interest payments due
Jan. 1, 2008, under $300 million in aggregate principal amount of
its 9% Senior Notes due 2010 and $185 million in aggregate
principal amount of its 10-3/8% Senior Subordinated Notes due
2012.

The failure to pay interest on such Notes within 30 days of the
due date could result in the indebtedness represented by the Notes
becoming immediately due and payable and as a result cause other
indebtedness of the company to be accelerated and become
immediately due and payable.

Previously, the company disclosed that it is considering
restructuring alternatives.

Headquartered in Hollywood. Florida, TOUSA Inc. (NYSE: TOA) --
http://www.tousa.com/-- is a homebuilder in the United States,
operating in various metropolitan markets in 10 states located in
four major geographic regions: Florida, the Mid-Atlantic, Texas,
and the West.  TOUSA designs, builds, and markets detached single-
family residences, town homes, and condominiums to a diverse group
of homebuyers, such as "first-time" homebuyers, "move-up"
homebuyers, homebuyers who are relocating to a new city or state,
buyers of second or vacation homes, active-adult homebuyers, and
homebuyers with grown children who want a smaller home.  It also
provides financial services to its homebuyers and to others
through its subsidiaries, Preferred Home Mortgage Company and
Universal Land Title Inc.

                          *     *     *

Moody's Investor Service placed TOUSA Inc.'s long term corporate
family rating at 'Ca' in November 2007 and its probability of
default rating at 'Caa2' in September 2007.  The ratings still
hold to date with a negative outlook.


TOUSA INC: S&P Cuts Rating to "D" on Missed Interest Payments
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on TOUSA Inc. to 'D' from 'CC' and downgraded TOUSA's
$300 million 9.0% senior notes due 2010 and its $185 million
10.375% senior subordinated notes due 2012 to 'D' from 'C' after
the company announced that it had failed to make scheduled
interest payments on these obligations.

Additionally, S&P lowered its rating on TOUSA's senior secured
first-lien term loan to 'CC' from 'CCC-', and S&P affirmed its 'C'
ratings on $575 million of additional unsecured debt and TOUSA's
$300 million senior secured second-lien term loan.

TOUSA recently announced that it had failed to make its semiannual
interest payments due Jan. 1, 2008, on the senior notes due 2010
and 2012.  This payment default could trigger acceleration of
additional long-term debt if TOUSA does not make the delinquent
interest payments within a 30-day grace period.  TOUSA previously
announced that it had amended its first-lien term loan and
revolving credit agreements.  The amendments extend through
Feb. 1, 2008, and include a requirement that TOUSA operate under a
cash flow budget that does not provide for payments on its long-
term debt.  TOUSA's next debt service obligation is the Jan. 15,
2008, scheduled semiannual interest payment on the company's 7.5%
senior subordinated notes due 2015.

Hollywood, Florida-based TOUSA is a midsize regional homebuilder
that has faltered due to a highly leveraged balance sheet and
heavy concentration in Florida and other oversupplied housing
markets.  TOUSA is considering several restructuring options,
including a potential Chapter 11 filing.

                          Ratings Lowered

                             TOUSA Inc.

                                       Rating
                                       ------

                                 To              From
                                 --              ----

Corporate credit                 D/--/--         CC/Negative/-
$300 mil. 9% sr nts
due 2010                         D               C
$185 mil. 10.375% sr
sub nts due 2012                 D               C
$200 mil. sr secd 1st-lien
term loan                        CC              CCC-
                                (Recov rtg: 2)  (Recov rtg: 2)

                         Ratings Affirmed

                                            Rating
                                            ------

  $250 mil. 8.25% sr nts due 2011             C
  $125 mil. 7.5% sr sub nts due 2011          C
  $200 mil. 7.5% senior sub notes due 2016    C
  $300 mil. sr secd 2nd-lien term loan        C (Recov rtg: 6)


UNBRIDLED ENERGY: Posts $1.1 Mil. Net Loss in Qtr. Ended Oct. 31
----------------------------------------------------------------
Unbridled Energy Corp. reported a net loss of $1.1 million on
revenue of $68,832 for the second quarter ended Oct. 31, 2007,
compared with a net loss of $558,593 on revenue of $23,033 in the
same period last year.

During the period ended October 31, 2007, the company recorded net
revenue of $53,032 from its oil and gas properties.

Total expenses increased to $1.2 million during the three-months
ended Oct. 31, 2007, compared to total expenses of $581,626 in the
corresponding period last year.  Total expenses increased due to
the increased level of corporate and field activity as a result of
the increase in oil and gas acquisitions and exploration and the
requirement for additional personnel and office facilities.

At Oct. 31, 2007, the company's consolidated balance sheet showed
$20.3 million in total assets, $3.9 million in total liabilities,
and $16.4 million in total stockholders' equity.

The company's consolidated balance sheet at Oct. 31, 2007, also
showed strained liquidity with $2.5 million in total current
assets available to pay $3.6 million in total current liabilities.

As of October 31, 2007, the company had $762,169 in cash and cash
equivalents.  The company had no debt as of Oct. 31, 2007.

                       Going Concern Doubt

The company disclosed that at Oct. 31, 2007, the company had not
yet achieved profitable operations, has accumulated losses of
$9,081,750 and expects to incur further losses in the development
of its business.  The company said that these factors cast
substantial doubt about the company's ability to continue as a
going concern.

                      About Unbridled Energy

Based in Calgary, Alberta, Canada, Unbridled Energy Corp. (TSX-V:
UNE) -- http://www.unbridledenergy.com/-- is an independent
natural gas evaluation and production company specializing in
shale gas and tight gas sands opportunities in two main basins
within North America; the eastern US Appalachian Basin and the
Western Canadian Sedimentary Basin.


VIKING SYSTEMS: Deflects Bankr. Warning; Executes Recapitalization
------------------------------------------------------------------
Viking Systems, Inc. has successfully executed a complete
recapitalization of the company.  As a result, the company has
simplified its capital structure by exchanging previously issued
preferred stock and debentures for common stock.  Additionally,
the company raised $2.6 million issuing approximately 14.6 million
shares of common stock in a private placement.

Due to the inability to service its debt, the company faced the
prospect of bankruptcy.  In light of this prospect, certain
investors in the company proposed:

   (1) significantly cutting costs and expenses,

   (2) replacing the Chairman and CEO,

   (3) redistributing the equity of the Company among the existing
       debenture, preferred stock and common stock holders, and

   (4) investing an additional $2.6 million to be used in 2008
       while the company improves it operations, grows its
       business and begins generating positive cash flow in the
       second half of 2008.

During the first phase of implementation of this plan in the
fourth quarter of 2007, the former CEO and former Board of
Directors resigned, and a new four-person Board was appointed.

                    1-50 Stock Reverse Split

On Friday, Jan. 4, 2008, Viking Systems' common stock underwent a
1 for 50 reverse split.  As of Jan. 7, 2008, the company stock
trades on the OTCBB under the symbol "VKNG.OB."  Simultaneously,
the company's convertible debentures and convertible Series B
Preferred Stock were voluntarily converted into common stock,
resulting in the holders of these former securities owing most of
the outstanding common stock of the company.  Immediately
thereafter, 14,560,037 newly issued shares of common stock were
sold in a private placement for $2.6 million, or $0.179571 per
share.  A total of 27,858,975 warrants to purchase Viking Systems
common stock at $0.18 per share were also issued in connection
with these transactions, and previous warrants held by the
debenture and preferred stock holders were cancelled.  Viking
Systems now has a total of 42,556,587 shares of common stock
outstanding following the reverse split and recapitalization.

The company believes that it now has sufficient liquidity to fund
its operations until it can begin to generate positive cash flow
in the second half of 2008.  The company estimates revenue of
$11 million to $12 million for 2008 continuing its double digit
annual growth rate.  Sales in 2006 were reported at $5.6 million.
Preliminary indications are that 2007 sales will represent an
approximately 50 percent increase compared with 2006.  The 2008
forecast represents 30 to 40 percent year over year growth.

"A majority of our sales are currently to our OEM partners,"
William C. Bopp, Chairman and newly appointed CEO commented.
"These sales consist of visualization solutions which we develop
specifically for medical device companies to include with their
minimally invasive surgical products.  We also have experienced
significant sales growth from our Viking 3D visualization systems
through a world-wide network of independent distributors.  We
anticipate strong sales growth in 2008 through both of these
channels."

In the fourth quarter of 2007, the company refocused its business
and implemented cost reductions.  Prior to these changes Viking
Systems was approaching its 3D customers through a direct sales
force in the U.S., using considerable marketing and promotional
spending.  Mr. Bopp stated, "Our new strategy is to utilize
independent distributors to increase market awareness for this
superior visualization system.  At the same time, we will continue
focusing resources on growing our OEM business."

                       CEO Appointment

Effective Jan. 4, 2008, Mr. William C. Bopp, was appointed Chief
Executive Officer of Viking Systems, Inc.  Since October 11, 2007
Mr. Bopp has served as Chairman of the Board and he will continue
in this role.  As part of the $2.6 million raised in this
transaction, Mr. Bopp acquired 9,800,024 shares of the company's
common stock, and associated warrants, for $1,750,000.  When this
purchase is combined with his previous holdings, Mr. Bopp
currently owns a total of 14,397,727 shares (33.8%) of the
company's common stock, all of which are subject to a "lock-up"
agreement between Mr. Bopp and the Company until December 15,
2009.  Mr. Bopp has executed an employment agreement with the
company with a salary of $39,000 per year for an initial two-year
term, which renews annually automatically, unless terminated by
either the company or Mr. Bopp.

Prior to joining Viking, Mr. Bopp was a private investor.
Previously he was with ALARIS Medical Systems, Inc., a developer,
manufacturer and marketer of infusion devices and related
disposable products, where he had been senior vice president and
chief financial officer.  Mr. Bopp joined ALARIS in March 1999, as
vice president and chief financial officer.  He was elected to the
position of senior vice president and chief financial officer in
November 1999.  ALARIS was acquired for approximately $2.0 billion
by Cardinal Health, Inc. in July 2004, and Mr. Bopp assisted for
an additional year with the integration of ALARIS into Cardinal
Health before retiring in 2005.  Mr. Bopp was formerly executive
vice president and chief financial officer of C.R. Bard, Inc.
Since 1980, he held positions of increasing responsibility with
Bard, currently a $2.0 billion developer, manufacturer and
marketer of health care products.  From 1995 through 1998, he also
served as a member of the Board of Directors of Bard and a member
of the Finance Committee of the Board.  Mr. Bopp is a graduate of
Harvard College, Cambridge, MA, and completed his MBA, Finance,
from the Harvard Business School.

                      About Viking Systems

Based in La Jolla, California, Viking Systems, Inc. (OTCBB: VKNG)
-- http://www.vikingsystems.com/-- provides 3D endoscopic vision
systems to hospitals for minimally invasive surgery.  Viking is
leveraging that position to become a market leader in bringing
integrated solutions to the digital surgical environment.  The
company's focus is to deliver integrated information,
visualization and control solutions to the surgical team,
enhancing their capability and performance in MIS and complex
surgical procedures.

                       Going Concern Doubt

Squar, Milner, Peterson, Miranda & Willamson LLP raised
substantial doubt about the ability of Viking Systems, Inc. to
continue as a going concern after auditing the company's financial
statements for the year ended Dec. 31, 2006, and 2005.  The
auditing firm pointed to the company's recurring losses from
operations through Dec. 31, 2006, and working capital deficit at
Dec. 31, 2006.


WCI COMMUNITIES: Banks Extend Limited Waiver Until January 16
-------------------------------------------------------------
WCI Communities Inc. reported that the limited waiver of
performance under the Fixed Charge Coverage covenant of the Senior
Secured Revolving Credit Agreement, and the Term Loan Agreement,
that was granted by its banks on Nov. 7, 2007, and subsequently
extended on Dec. 7, 2007, to Jan. 7, 2008, has now been extended
to Jan. 16, 2008.

During this new extended waiver timeframe, the company expects to
finalize discussions regarding the anticipated longer-term
amendment that would provide financial flexibility, including
modification of the fixed charges coverage covenant, and obtain
approval of lenders participating in these facilities.

Until finalized it is not certain that the company will reach
agreement or obtain approval of the anticipated longer-term
amendment.  This amendment will be expensive and there can be no
assurance that the company will be able to comply with the amended
covenants and other requirements.

If WCI is unable to obtain the amendment or comply with its terms,
the lenders would have the right to exercise remedies specified in
the loan agreements, including foreclosing on certain collateral
and accelerating the maturity of the loans, which could result in
the acceleration of substantially all of the company's other
outstanding indebtedness.  In such a situation, there can be no
assurance that the company would be able to obtain alternative
financing.

In addition, if the company is determined to be in default of
these loan agreements, it may be prohibited from drawing
additional funds under the Credit Facility and the Tower Loan,
which could impair its ability to maintain sufficient working
capital.  Either situation could have a material adverse affect on
the solvency of the company.

                    About WCI Communities

Headquartered in Florida, WCI Communities Inc. (NYSE: WCI) --
http://www.wcicommunities.com/-- is a home builder catering to
primary, retirement, and second-home buyers in Florida, New York,
New Jersey, Connecticut, Maryland and Virginia.  The company
offers both traditional and tower home choices and features a wide
array of recreational amenities in its communities.  In addition
to homebuilding, WCI generates revenues from its Prudential
Florida WCI Realty Division and its recreational amenities, well
as through land sales and joint ventures.  The company currently
owns and controls developable land on which the company plans to
build about 20,000 traditional and tower homes.

                          *     *     *

As reported in the Troubled Company Reporter on Nov. 12, 2007,
Moody's lowered the ratings of WCI Communities Inc., including its
corporate family rating to Caa2 from B3 and the ratings on its
senior subordinated notes to Caa3 from Caa2.  The ratings outlook
is negative.


WEEKS STREET: Can Hire Stanley Zlotoff as Bankruptcy Counsel
------------------------------------------------------------
Weeks Street LLC obtained permission from the U.S. Bankruptcy
Court for the Northern District of California to employ Stanley A.
Zlotoff, P.C. as its bankruptcy counsel.

The firm is expected to:

   (a) give debtor legal advice with respect to its powers
       and duties as debtor in possession in the continued
       management of its property;

   (b) prepare necessary applications, answers, orders,
       reports and other legal papers;

   (c) to perform all other legal services for debtor as
       debtor in possession which may be necessary herein;

Stanley A. Zlotoff, Esq. told the Court that firm will bill the
Debtor $250 per hour for its services.  Mr. Zlotoff assured the
Court that the firm has no connection with the Debtor, its
creditors, or any other party-in-interest.

Weeks Street LLC filed for Chapter 11 protection on Dec. 13, 2007
(Bankr. N.D. Calif. Case No. 07-54183).  Stanley A. Zlotoff, Esq.
represents the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it listed
estimated assets and debts of $1 million to $100 million.


WT TESORO: BofA Balks at Exclusive Periods Extension
----------------------------------------------------
Bank of America N.A., the senior secured lender and DIP lender of
I.W.T. Tesoro Corporation and its debtor-affiliates, objects to
the Debtors' request for extension of their exclusive periods to
file a plan and solicit acceptances of that plan.

BofA tells the Court that the Debtors' proposed extension will
allow the Debotrs to proceed "with a 2 track process toward
reorganization" -- these tracks involves the sale of substantially
all of its assets and the proposal of a plan of reorganization.

BofA argues that the Debtors cannot afford a two track process
without any financing and considering the Debtors' deteriorating
financial condition.

BofA discloses that the Debtors' current budget expired on
Dec. 31, 2007, and the DIP financing will expire on Jan. 18, 2008.

In addition, BofA notes that its senior secured claims totaled
approximately $17 million and junior secured claim at
approximately $8.6 million.  BofA avers that the Debtors'
liquidation value is significantly less than the claims it holds.

As reported in the Troubled Company Reporter on Jan. 2, 2008,
the Debtors asked the Court to further extend their exclusive
period to file a plan for 120 days, and solicit acceptances of
that plan for 180 days.

The Debtors told the Court that they need sufficient time to
formulate a consensual Chapter 11 plan of reorganization as they
continue their negotiations with their proposed funder, KMA
Capital, and the Official Committee of Unsecured Creditors.

                         About I.W.T. Tesoro

I.W.T. Tesoro Corporation, fka Ponca Acquisition Company, --
http://www.iwttesoro.com/-- is headquartered in New York City.
The company and its subsidiaries distribute building materials,
specifically hard floor and wall coverings.  They are
wholesalers and do not sell directly to any end user.  Their
products consist of ceramic, porcelain and natural stone floor,
wall and decorative tile.  They import a majority of these
products from suppliers and manufacturers in Europe, South
America (Brazil), and the Near and Far East.  Their markets
include the United States and Canada.  They also offer private
label programs for branded retail sales customers, buying
groups, large homebuilders and home center store chains.

The Debtor and its debtor-affiliates, International Wholesale
Tile, Inc. and American Gres, Inc., filed for Chapter 11
bankruptcy protection on Sept. 6, 2007 (Bankr. S.D. NY Lead Case
No. 07-12841).  John K. Sherwood, Esq., at Lowenstein Sandler
P.C., represents the Official Committee of Unsecured Creditors.
As of June 30, 2007, the Debtors had total assets of $39,798,579
and total debts of $47,940,983.


XM SATELLITE: Inks Termination & Release Pact with Starbucks Corp.
------------------------------------------------------------------
XM Satellite Radio Holdings Inc. and Starbucks Corp. executed, on
Dec. 28, 2007, a Termination Agreement to terminate and release
each other from further obligations under a Marketing Agreement.
A summary of key provisions of the Termination Agreement include:

a) Marketing Agreement

   The Marketing Agreement provided for various cross-marketing
   and co-promotional activities, including the development and
   broadcast of the Starbucks XM Cafe Channel on the XM system,
   the granting by both parties of certain non-exclusive, non-
   transferable, royalty-free and limited purpose licenses to use
   each others' marks and mutual exclusivity.

b) Termination and Release

   The Marketing Agreement has been terminated, except for
   specified provisions that survive termination, including that
   XM will continue broadcasting the Starbucks XM Cafe Channel and
   continue licensing the "Starbucks" name in the channel on a
   royalty-free basis for a limited time.

   XM and Starbucks also provided a full release from any claims,
   liabilities and obligations relating to the Marketing
   Agreement.

c) Issuance of Shares

   To effect the termination of the Marketing Agreement and a
   release from cash payments and other obligations over the
   remaining term of the Marketing Agreement, XM issued shares of
   its Class A common stock valued at $22 million.  This amount
   equaled 1,853,412 shares based on the closing price of $11.87
   on Dec. 28, 2007.

d) Registration of Shares

   XM agreed to file prospectus supplements to register the shares
   issued to Starbucks under the Termination Agreement.  XM is
   obligated to continue this registration until the earlier of
   when Starbucks no longer holds any of the shares, the shares
   have become freely tradeable or the shares have been held for
   six months and other conditions are met for an exemption from
   registration to be available to Starbucks.

e) Price Protection

   XM agreed to provide Starbucks with certain protections against
   Starbucks realizing less than $22 million in net proceeds in
   the event it sells the shares during a five day trading period
   commencing Jan. 7, 2008, or a later date in certain limited
   cases.  If Starbucks sells shares issued under the Termination
   Agreement prior to the end of this specified five trading day
   period and realizes less than $22 million, XM would be required
   to pay the difference to Starbucks in cash or, at its option,
   in shares of our Class A common stock.  If Starbucks realizes
   more than $22 million before the end of the specified five day
   trading period, it would be required to return the difference
   to us in cash or shares of its Class A common stock, if
   Starbucks still has any of its shares, valued at the market
   price.

To the extent XM issues additional shares to make up a
differential in net proceeds, and Starbucks sells these shares
within three trading days, a similar price protection would apply.
XM would make a cash payment to Starbucks for any shortfall and
Starbucks would pay any excess back to XM.

XM will not receive the first $22 million of net proceeds from the
offer and sale of any securities by Starbucks, the selling
stockholder, all of which will go to Starbucks.  XM has agreed to
pay the expenses of registering the Class A common stock being
offered by Starbucks pursuant to this prospectus, and to cover
certain selling expenses and any shortfall in proceeds to the
extent that Starbucks realizes less than the $22 million from sale
of its shares during the five day trading period described under
Termination and Release Agreement with Starbucks.  To the extent
that Starbucks realizes more than $22 million from sale of its
shares during the five day trading period, the excess would be
paid to XM in cash or by return of shares of its Class A common
stock.

                        About Starbucks

Headquartered in Seattle, Washington, Starbucks Corp. is an coffee
retail operator that purchases and roasts high-quality whole bean
coffees and sells them along with fresh, rich-brewed, Italian
style espresso beverages, a variety of pastries and confections,
and coffee-related accessories and equipment -- primarily through
its company-operated retail stores. In addition to sales through
our company-operated retail stores, Starbucks sells whole bean
coffees through a specialty sales group and supermarkets.
Additionally, Starbucks produces and sells bottled Frappuccino(R)
coffee drink and a line of premium ice creams through its joint
venture partnerships and offers a line of innovative premium teas
produced by its wholly owned subsidiary, Tazo Tea Company.

                            About XM

Based in Washington, D.C., XM Satellite Radio Holdings Inc. --
http://www.xmradio.com/-- parent of XM Satellite Radio Inc.
(Nasdaq: XMSR), is a satellite radio company, with more than
8.5 million subscribers.  XM delivers entertainment and data
services for the automobile market through partnerships with
General Motors, Honda, Hyundai, Nissan, Porsche, Ferrari, Subaru,
Suzuki and Toyota.

At Sept. 30, 2007, XM's balance sheet reflected total assets of
$1.7 billion, total liabilities of $2.4 billion, and a
stockholders' deficit of $790 million.

                          *     *     *

Standard & Poor's assigned CCC+ long-term foreign and local issuer
credit ratings to XM Satellite Radio Holdings Inc. on February
2007.

XM Satellite Radio Holdings Inc. also holds Moody's Investors
Services' Caa1 long-term corporate family rating (assigned June
2003), Caa3 senior unsecured debt rating (assigned February 2005),
and Caa1 probability of default rating (assigned September 2006).
These three ratings still hold to date.


XOMA LTD: Earns $21.8 Million in Third Quarter
----------------------------------------------
XOMA Ltd. reported net income of $21.8 million for the third
quarter ended Sept. 30, 2007, compared with a net loss of
$10.8 million in the same period last year.

XOMA's total revenues were $43.1 million in the third quarter of
2007, an increase of $35.7 million over total revenues of
$7.4 million in the third quarter of 2006.  Growth in revenues
primarily reflects the license fee of $30.0 million received from
Pfizer, increases in royalty revenues from Genentech's LUCENTIS(R)
and RAPTIVA(R) products, and increased activities in the company's
contracts with companies including Schering-Plough Research
Institute and Takeda Pharmaceutical Company Limited, and with the
National Institute of Allergy and Infectious Diseases.

"XOMA's successful third quarter highlights the value of our
antibody discovery and development technologies and the overall
strength of our antibody business," Steven Engle, chairman and
chief executive officer of XOMA, commented.  "Our financial
results for the period were excellent, supported by the continued
growth of our royalty revenues and license fees.  Pfizer, the
world's largest pharmaceutical company, in advance of their
planned expansion in biotherapeutics, entered a major license
agreement for access to our bacterial cell expression technology.

"Terms of the agreement include $30.0 million in cash, which was
recognized in full during this quarter, and potential milestones
and royalties on BCE-derived products.  Adding to these
achievements, we advanced the Phase 1 development of XOMA 052, a
potent monoclonal antibody that targets IL-1 beta.  We are excited
about the multi-indication potential of XOMA 052 and are actively
evaluating clinical plans for its expanded development in 2008."

The operating income for the third quarter was $22.7 million in
2007 compared to an operating loss of $9.5 million in 2006,
reflecting higher revenue in 2007 partially offset by an increase
in operating costs primarily related to personnel-related costs
and certain other expenses.

XOMA's research and development expense for the third quarter of
2007 totaled $14.6 million, compared with $12.7 million in the
same period of 2006.  The $1.9 million increase primarily reflects
increases in spending on the company's July 2006 contract with
NIAID, its contract with AVEO, internal development of XOMA 052,
XOMA 629 and collaboration with Schering-Plough and Takeda, offset
by a reduction in research and development by a major collaborator
of $2.8 million.

General and administrative expense for the three months ended
Sept. 30, 2007, was $5.8 million compared with $4.2 million for
the same period last year.

Interest expense for the three months ended Sept. 30, 2007, was
$1.2 million compared with $1.7 million for the same period of
2006.

Revenues for the first nine months of 2007 more than tripled from
$20.5 million in the first nine months of 2006 to $69.5 million.
Net loss decreased to $2.4 million compared to a net loss of
$37.4 million in the first nine months of 2006.

                 Liquidity and Capital Resources

Cash, cash equivalents and short-term investments at Sept. 30,
2007 totaled $47.6 million compared with $46.4 million at Dec. 31,
2006.  The $1.2 million increase includes cash provided by
operating activities of $7.4 million, the transfer of $2.7 million
from restricted cash and a draw on the Novartis loan of
$2.0 million offset by cash used for $4.7 million in principal
payments on the company's Goldman Sachs term loan and cash used in
the purchase of fixed assets of $6.5 million.

                          Long-term Debt

At Sept. 30, 2007, XOMA had an outstanding principal amount of
$30.3 million on the 5-year term loan from Goldman Sachs
established in November of 2006, and $18.9 million of long-term
debt to Novartis.  The long-term debt to Novartis represents
XOMA's borrowings under a $50.0 million loan facility established
to facilitate XOMA's participation in its collaboration with
Novartis.

                          Balance Sheet

At Sept. 30, 2007, the company's consolidated balance sheet showed
$90.4 million in total assets, $81.2 million in total liabilities,
and $9.2 million in toal 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?26d3

                         About XOMA Ltd.

Based in Berkeley, California, XOMA Ltd. (NasdaqGM: XOMA) --
http://www.xoma.com/-- develops and manufactures therapeutic
antibodies, with a therapeutic focus that includes cancer and
immune diseases.  XOMA has royalty interests in RAPTIVA(R), a
monoclonal antibody product marketed worldwide by Genentech and
Merck Serono to treat moderate-to-severe plaque psoriasis, and
LUCENTIS(R), a monoclonal antibody product marketed worldwide to
treat neovascular age-related macular degeneration.

                          *     *     *

XOMA Ltd. still carries Moody's Investors Service's 'Caa'
Subordinated Debt rating which was placed on April 13, 1989.


* Texas Headquarters Moves to "Demystify" Personal Bankruptcy
-------------------------------------------------------------
Filing bankruptcy in Texas just got one step easier.  With the
successful launch of the new Texas section of the Bankruptcy
Headquarters Web site, citizens of the Lone Star state can now
access a comprehensive website to educate themselves about any
aspect of the Texas bankruptcy process and learn how to take the
appropriate steps to free themselves from heavy personal financial
burden.

The new Texas section of the Bankruptcy Headquarters website
provides in-depth details about the Texas state bankruptcy
exemptions, the Texas bankruptcy courts, statistics related to
bankruptcy filings in Texas, and information about the bankruptcy
laws in Texas.

In addition to the Texas-specific bankruptcy information, the
website also offers basic bankruptcy information like:

   -- Top 10 bankruptcy questions
   -- Weekly blogs about current bankruptcy issues
   -- Details about the step-by-step bankruptcy process
   -- Clarification regarding bankruptcy truths and myths
   -- How to understand your credit
   -- Descriptions about life after bankruptcy

For many Texans, understanding the differences between filing for
Chapter 7 bankruptcy in Texas and Chapter 13 bankruptcy in Texas
can be confusing because of the extensive legal technicalities.
Bankruptcy Headquarters provides just the right amount of
information, advice and resources -- all in plain English -- to
clarify and "demystify" the personal bankruptcy process.  And with
the ability to receive a free financial evaluation from a local
bankruptcy attorney, Bankruptcy Headquarters has now become a one-
stop shop for Texans to learn how to get their personal finances
back on track.

For questions about Bankruptcy Headquarters, please contact Rich
Waple at rjw@wpsolutionsinc.com

The new Texas section of the Bankruptcy Headquarters Web site --
www.bankruptcyhq.com/texas -- provides Texans the ability to
educate themselves about any aspect of the bankruptcy process in
the Lone Star state.  For Texas citizens thinking about filing
bankruptcy, Bankruptcy Headquarters "demystifies" the Chapter 7
and Chapter 13 process, teaching readers in layman's terms how to
become free from financial hardship.


* S&P Assigns Ratings on 149 Tranches from 43 Cash Flows and CDOs
-----------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on 149
tranches from 43 U.S. cash flow and hybrid collateralized debt
obligation of asset-backed securities transactions on CreditWatch
with negative implications.  The CDO CreditWatch placements follow
the downgrades of 793 classes of U.S. residential mortgage-backed
securities backed by U.S. closed-end second-lien mortgage
collateral issued in 2004, 2005, and 2006.

The CDO tranches with ratings placed on CreditWatch have a total
issuance amount of $6.42 billion, and all are from CDOs of ABS
collateralized by structured finance securities, including U.S.
RMBS backed by closed-end second-lien collateral.  Twenty-eight of
these 43 transactions are high-grade structured finance (SF) CDOs
of ABS (CDOs of ABS collateralized at origination primarily by
'AAA', 'AA', and up to 30% 'A' rated tranches of RMBS and other SF
securities), while the remaining 15 transactions are mezzanine SF
CDOs of ABS (collateralized by 'A' and 'BBB' rated tranches of
RMBS and other SF securities).

Among the high-grade SF CDOs with ratings placed on CreditWatch,
exposure to the downgraded U.S. RMBS backed by U.S. closed-end
second-lien mortgage ranges from 1.15% to 11.88% of the total
portfolio collateral held by the CDO
(with an average exposure of 3.98%), while the corresponding range
for the mezzanine SF CDOs is from 1.29% to 10.35% (with an average
exposure of 4.55%).

Standard & Poor's is continuing its review of cash flow and hybrid
CDO transactions with exposure to downgraded U.S. RMBS and will
take actions on the CDO ratings where appropriate.

                                                Rating
                                                ------

  Transaction Name            Tranche     To               From
  ----------------            -------     --               ----

ACA ABS 2006-2 Ltd.           A1LA        AAA/Watch Neg    AAA
ACA ABS 2006-1 Ltd.           A-1LA       AAA/Watch Neg    AAA
Lancer Funding Ltd.           A1J         AAA/Watch Neg    AAA
Lancer Funding Ltd.           A2          AA/Watch Neg     AA
Lancer Funding Ltd.           A3          A/Watch Neg      A
Lancer Funding Ltd.           B           BBB/Watch Neg    BBB
Buckingham CDO III Ltd.       D           A/Watch Neg      A
Buckingham CDO III Ltd.       E           BBB/Watch Neg    BBB
Buckingham CDO III Ltd.       Income nts  BB+/Watch Neg    BB+
River North CDO Ltd.          C           A/Watch Neg      A
River North CDO Ltd.          D-1         BBB/Watch Neg    BBB
River North CDO Ltd.          D-2         BBB/Watch Neg    BBB
E*Trade ABS CDO III Ltd.      B           AA/Watch Neg     AA
E*Trade ABS CDO III Ltd       C           BBB/Watch Neg    BBB
E*Trade ABS CDO III Ltd       Pref shrs   BB+/Watch Neg    BB+
E*Trade ABS CDO III Ltd       Series I    BBB/Watch Neg    BBB
Belle Haven ABS CDO Ltd.      A1J         AAA/Watch Neg    AAA
Belle Haven ABS CDO Ltd.      A2          AA/Watch Neg     AA
Belle Haven ABS CDO Ltd.      A3          A-/Watch Neg     A-
Belle Haven ABS CDO Ltd.      Com sec     AAA/Watch Neg    AAA
Belle Haven ABS CDO Ltd.      Sub nts     BBB-/Watch Neg   BBB-
Orion 2006-1 Ltd.             A           AAA/Watch Neg    AAA
Orion 2006-1 Ltd.             B           AA/Watch Neg     AA
Orion 2006-1 Ltd.             C           A/Watch Neg      A
Orion 2006-1 Ltd.             D           BBB/Watch Neg    BBB
West Trade Funding CDO I Ltd  C           A/Watch Neg      A
West Trade Funding CDO I Ltd  D           BBB/Watch Neg    BBB
West Trade Funding CDO I Ltd  E           BB+/Watch Neg    BB+
West Trade Funding II CDO Ltd A-4         AAA/Watch Neg    AAA
West Trade Funding II CDO Ltd B           AA/Watch Neg     AA
West Trade Funding II CDO Ltd C           AA-/Watch Neg    AA-
West Trade Funding II CDO Ltd D           A/Watch Neg      A
Nassau CDO I Ltd              A-3         AAA/Watch Neg    AAA
Nassau CDO I Ltd              B           AA/Watch Neg     AA
Nassau CDO I Ltd              C           A/Watch Neg      A
Nassau CDO I Ltd              D           BBB/Watch Neg    BBB
Kleros Preferred Funding III  A-2         AAA/Watch Neg    AAA
Kleros Preferred Funding III  B           AA/Watch Neg     AA
Kleros Preferred Funding III  C           A/Watch Neg      A
Kleros Preferred Funding III  D           BBB/Watch Neg    BBB
Kleros Preferred Funding III  E           BB+/Watch Neg    BB+
Scorpius CDO Ltd.             A-2A        AAA/Watch Neg    AAA
Scorpius CDO Ltd.             A-2B        AAA/Watch Neg    AAA
Scorpius CDO Ltd.             B           AA/Watch Neg     AA
Scorpius CDO Ltd.             C           AA-/Watch Neg    AA-
Scorpius CDO Ltd.             D           A/Watch Neg      A
Scorpius CDO Ltd.             E           A-/Watch Neg     A-
Scorpius CDO Ltd.             F           BBB/Watch Neg    BBB
Scorpius CDO Ltd.             G           BBB-/Watch Neg   BBB-
Longshore CDO Funding 2006-2  B           AA/Watch Neg     AA
Longshore CDO Funding 2006-2  C-1         A/Watch Neg      A
Longshore CDO Funding 2006-2  C-2         A-/Watch Neg     A-
Longshore CDO Funding 2006-2  D           BBB-/Watch Neg   BBB-
Term CDO 2007-1 Ltd           A-2L        A/Watch Neg      A
Term CDO 2007-1 Ltd           A-3L        BB+/Watch Neg    BB+
Term CDO 2007-1 Ltd           B-1L        B/Watch Neg      B
Citius I Funding Ltd          D           BBB/Watch Neg    BBB
Citius I Funding Ltd          E           BB+/Watch Neg    BB+
Citius II Funding Ltd.        B           AA/Watch Neg     AA
Citius II Funding Ltd.        C           A/Watch Neg      A
Citius II Funding Ltd.        D           BBB/Watch Neg    BBB
Millstone III CDO Ltd.        A-2         AAA/Watch Neg    AAA
Millstone III CDO Ltd.        B           AA/Watch Neg     AA
Millstone III CDO Ltd.        C           A/Watch Neg      A
Millstone III CDO Ltd.        D-1         BBB/Watch Neg    BBB
Millstone III CDO Ltd.        D-2         BBB/Watch Neg    BBB
Kent Fdg III Ltd.             A-3         AAA/Watch Neg    AAA
Kent Fdg III Ltd.             B           AA/Watch Neg     AA
Kent Fdg III Ltd.             C           A/Watch Neg      A
Kent Fdg III Ltd.             D           BBB/Watch Neg    BBB
Independence III CDO Ltd.     B           AA/Watch Neg     AA
Independence III CDO Ltd.     C-1         BB/Watch Neg     BB
Independence III CDO Ltd.     C-2         BB/Watch Neg     BB
Independence V CDO Ltd.       B           A/Watch Neg      A
Independence V CDO Ltd.       C           BB-/Watch Neg    BB-
Independence V CDO Ltd. Ser1  Pref shrs   CCC+/Watch Neg   CCC+
Independence V CDO Ltd. Ser2  Pref shrs   CCC+/Watch Neg   CCC+
Independence VI CDO Ltd.      A2          AAA/Watch Neg    AAA
Independence VI CDO Ltd.      B           AA/Watch Neg     AA
Independence VI CDO Ltd.      C           A/Watch Neg      A
Independence VI CDO Ltd.      D           BBB/Watch Neg    BBB
Independence VI CDO Ltd.      E           BBB-/Watch Neg   BBB-
Brigantine High Grade Funding A-2         AAA/Watch Neg    AAA
Barrington II CDO Ltd.        B           AA/Watch Neg     AA
Barrington II CDO Ltd.        C           A/Watch Neg      A
Barrington II CDO Ltd.        D           BBB/Watch Neg    BBB
Mercury CDO II Ltd.           D           BBB/Watch Neg    BBB
Aardvark ABS CDO 2007-1       A-2         AAA/Watch Neg    AAA
Wadsworth CDO Ltd             A-2         AAA/Watch Neg    AAA
Wadsworth CDO Ltd             B           AA/Watch Neg     AA
Wadsworth CDO Ltd             C           A/Watch Neg      A
Wadsworth CDO Ltd             D           BBB/Watch Neg    BBB
Wadsworth CDO Ltd             S-1A        BB+/Watch Neg    BB+
Gemstone CDO V Ltd.           A-3         AAA/Watch Neg    AAA
Gemstone CDO V Ltd.           A-4         AAA/Watch Neg    AAA
Gemstone CDO V Ltd.           B           AA/Watch Neg     AA
Gemstone CDO V Ltd.           C           A/Watch Neg      A
Gemstone CDO V Ltd.           D           BBB/Watch Neg    BBB
Gemstone CDO V Ltd.           E           BB/Watch Neg     BB
Citation High Grade ABS CDO
I Ltd                         A-2         AAA/Watch Neg    AAA
Citation High Grade ABS CDO
I Ltd.                        B-1         AA/Watch Neg     AA
Citation High Grade ABS CDO
I Ltd.                        B-2         AA-/Watch Neg    AA-
Citation High Grade ABS CDO
I Ltd.                        C           A/Watch Neg      A
Citation High Grade ABS CDO
I Ltd.                        D           BBB/Watch Neg    BBB
Millerton II High Grade ABS
CDO Ltd                       C           A/Watch Neg      A
Millerton II High Grade ABS
CDO Ltd                       D           BBB/Watch Neg    BBB
Pinnacle Peak CDO I Ltd       A3          AAA/Watch Neg    AAA
Pinnacle Peak CDO I Ltd       A4          AA/Watch Neg     AA
Pinnacle Peak CDO I Ltd       B           A+/Watch Neg     A+
Pinnacle Peak CDO I Ltd       C           A-/Watch Neg     A-
Saturn Ventures 2005-1 Ltd.   A-3         AA/Watch Neg     AA
Saturn Ventures 2005-1 Ltd.   B           A-/Watch Neg     A-
Saturn Ventures 2005-1 Ltd.   C           BBB/Watch Neg    BBB
Gloucester Street ABS CDO I
Ltd.                          A-2         AAA/Watch Neg    AAA
Gloucester Street ABS CDO I
Ltd.                          B           AA/Watch Neg     AA
Gloucester Street ABS CDO I
Ltd.                          C           A-/Watch Neg     A-
Gloucester Street ABS CDO I
Ltd.                          D           BBB-/Watch Neg   BBB-
Ipswich Street CDO Ltd.       A-2         AAA/Watch Neg    AAA
Ipswich Street CDO Ltd.       B           AA/Watch Neg     AA
Ipswich Street CDO Ltd.       C           A/Watch Neg      A
Ipswich Street CDO Ltd.       D           BBB/Watch Neg    BBB
Ipswich Street CDO Ltd.       E           BB+/Watch Neg    BB+
Newbury Street CDO Ltd.       A2          AAA/Watch Neg    AAA
Newbury Street CDO Ltd.       A3          AAA/Watch Neg    AAA
Newbury Street CDO Ltd.       A4          AAA/Watch Neg    AAA
Newbury Street CDO Ltd.       B           AA/Watch Neg     AA
Newbury Street CDO Ltd.       C           A/Watch Neg      A
Newbury Street CDO Ltd.       D           BBB/Watch Neg    BBB
MKP CBO IV Ltd.               B           AA/Watch Neg     AA
MKP CBO IV Ltd.               C           BBB/Watch Neg    BBB
Belle Haven ABS CDO 2006-1
Ltd.                          A-2         AAA/Watch Neg    AAA
Belle Haven ABS CDO 2006-1
Ltd.                          B           AA/Watch Neg     AA
Belle Haven ABS CDO 2006-1
Ltd.                          C           A/Watch Neg      A
Belle Haven ABS CDO 2006-1
Ltd.                          D           BBB/Watch Neg    BBB
Belle Haven ABS CDO 2006-1
Ltd.                          E           BB+/Watch Neg    BB+
Broderick CDO 1 Ltd.          C           BBB/Watch Neg    BBB
Cherry Creek CDO I Ltd.       A1J         AAA/Watch Neg    AAA
Tazlina Funding CDO I Ltd.    D           BBB/Watch Neg    BBB
Tazlina Funding CDO II Ltd.   B           AA/Watch Neg     AA
Tazlina Funding CDO II Ltd.   C           AA-/Watch Neg    AA-
Tazlina Funding CDO II Ltd.   D           A/Watch Neg      A
Tazlina Funding CDO II Ltd.   E           BBB/Watch Neg    BBB
Diversey Harbor ABS CDO Ltd.  A-3         AAA/Watch Neg    AAA
Diversey Harbor ABS CDO Ltd.  A-4         AA/Watch Neg     AA
Diversey Harbor ABS CDO Ltd.  B           A/Watch Neg      A
Diversey Harbor ABS CDO Ltd.  C           BBB/Watch Neg    BBB
Fort Dearborn CDO I Ltd.      A-2L        AA/Watch Neg     AA
Fort Dearborn CDO I Ltd.      A-3L        A/Watch Neg      A
Fort Dearborn CDO I Ltd.      B-1L        BBB/Watch Neg    BBB


* Large Companies with Insolvent Balance Sheets
-----------------------------------------------

                               Total
                               Shareholders    Total     Working
                               Equity          Assets    Capital
  Company              Ticker  ($MM)           ($MM)      ($MM)
  -------              ------  ------------    ------    -------
Absolute Software       ABT          (3)          77       28
AFC Enterprises         AFCE        (36)         151       (7)
Alaska Comm Sys         ALSK        (28)         557       24
Bare Escentuals         BARE       (132)         214       76
Blount International    BLT         (78)         472       140
CableVision System      CVC      (5,131)       9,807     (630)
Carrols Restaurant      TAST        (13)         463      (29)
Centennial Comm         CYCL     (1,068)       1,332       61
Cheniere Energy         CQP        (203)       1,962      109
Choice Hotels           CHH        (149)         338      (31)
Cincinnati Bell         CBB        (671)       1,966       17
Claymont Stell          PLTE        (40)         158       80
Compass Minerals        CMP         (48)         722      145
Corel Corp.             CRE         (20)         249      (19)
Crown Holdings I        CCK         (65)       6,949      440
Crown Media HL          CRWN       (619)         703       48
CV Therapeutics         CVTX       (157)         281      204
Cyberonics              CYBX        (18)         132      (28)
Deltek Inc              PROJ       (144)         148      (12)
Denny's Corporation     DENN       (201)         413      (65)
Domino's Pizza          DPZ      (1,434)         497       82
Dun & Bradstreet        DNB        (467)       1,419     (262)
Einstein Noah Re        BAGL        (41)         146        0
Entropic Communications ENTR        (33)         177       29
Extendicare Real        EXE-U       (24)       1,277      161
Gencorp Inc.            GY          (31)       1,082       74
General Motors          GM      (40,071)     149,500   (1,798)
Healthsouth Corp.       HLS      (1,025)       2,529     (351)
IDEARC Inc              IAR      (8,531)       1,658      391
IMAX Corp               IMX         (77)         213        0
IMAX Corp               IMAX        (77)         213        0
Incyte Corp.            INCY       (141)         283      238
Indevus Pharma          IDEV        (74)         183       39
Intermune Inc           ITMN        (13)         292      237
Koppers Holdings        KOP         (24)         676      186
Life Sciences Re        LSR           0          236        7
Linear Tech Corp        LLTC       (636)       1,334      827
Lodgenet Entertn        LNET        (18)         709       18
McMoran Exploration     MMR        (100)       1,807     (223)
Mediacom Comm           MCCC       (188)       3,631     (276)
National Cinemed        NCMI       (579)         439       40
Navistar Intl           NAVZ     (1,699)      10,786      164
Netsuite Inc            N           (49)          56      (46)
Nexstar Broadcasting    NXST        (87)         708      (19)
NPS Pharm Inc           NPSP       (210)         361     (119)
ON Semiconductor        ONNN        (35)       1,526      395
Points International    PTS          (6)          42        5
PRG-Schultz Intl        PRGX        (29)         115       21
Primedia Inc            PRM        (129)         282        6
Protection One          PONN        (13)         675     (287)
Radnet Inc.             RDNT        (53)         434       41
Regal Entertainment     RGC         (93)       2,594      (41)
Riviera Holdings        RIV         (42)         219       18
RSC Holdings Inc        RRR         (73)       3,554     (283)
Rural Cellular          RCCC       (595)       1,328       98
Sally Beauty Hol        SBH        (761)       1,405      354
Sealy Corp.             ZZ         (128)       1,023       40
Sipex Corp              SIPX        (18)          44        2
Sirius Satellite        SIRI       (641)       1,587     (262)
Sonic Corp              SONC       (107)         759      (41)
Spectrum Brands         SPC        (104)       3,211      779
St. John Knits Inc.     SJKI        (52)         213       80
Station Casinos         STN        (291)       3,932      (50)
Stelco Inc              STE         (64)       2,657      693
Town Sports Int.        CLUB         (6)         483      (71)
Voyager Learning        VLCY        (53)         917     (637)
Warner Music Gro        WMG         (36)       4,572     (687)
Weight Watchers         WTW        (945)       1,037     (134)
Western Union           WU         (146)       5,685   (2,261)
WR Grace & Co.          GRA        (343)       3,794   (1,246)
XM Satellite            XMSR       (724)       1,709     (244)

                            *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy,
Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva,
Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez,
Tara Marie A. Martin, John Paul C. Canonigo, Joseph Medel C.
Martirez, Philline P. Reluya, and Peter A. Chapman, Editors.

Copyright 2008.  All rights reserved.  ISSN: 1520-9474.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.  Information contained
herein is obtained from sources believed to be reliable, but is
not guaranteed.

The TCR subscription rate is $775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

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