/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/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. *** End of Transmission ***