T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, January 16, 2008, Vol. 12, No. 13 Headlines 360 GLOBAL: 360 Viansa Emerges from Bankruptcy Protection ACA ABS: Six Classes Obtain S&P's Junk Ratings AEGIS MORTGAGE: Wants February 15 Set as Admin Claims Bar Date AEGIS MORTGAGE: Court Okays Capstone Advisory as Financial Advisor AMERIQUEST MORTGAGE: Moody's Junks Ratings on 13 Certificates AREI NEWHALL: Voluntary Chapter 11 Case Summary ARGENT MORTGAGE: Four Certificates Obtain Moody's Junk Ratings AXIUM INTERNATIONAL: SulmeyerKupetz Named as Chapter 7 Trustee BANK OF AMERICA: Moody's Cuts Ratings on Six Tranches to Low-B BFC SILVERTON: S&P Places Junk Ratings on Six Classes BIO-RAD LABS: S&P Upgrades Corporate Credit Rating BLACKBOARD INC: To Acquire NTI Group for $182 Million BLACKBOARD INC: S&P Ratings Unaffected by NTI Group Acquisition CALPINE CORP: New Common Stock Begins Trading Today CENTRO NP: S&P Says CCC+ Issuer Ratings Remain on Developing Watch CENTRO PROPERTIES: Has Until Feb. 15 to Cure U.S. Notes Default CENTRO PROPERTIES: Andrew Scott Resigns as Chief Executive Officer CHEVY CHASE: Moody's Reviews Ratings and May Downgrade CHUCK LAVERTY: Case Summary & 35 Largest Unsecured Creditors CONCORD RE: Loan Maturity Prompts Moody's Ba2 Rating Withdrawal CYBERHOME ENT: Parties Have Until January 24 to Bid for Brand DELPHI CORP: Commences Exit Financing Syndication DELPHI CORP: U.S. Trustee Balks at Panel's Exit Loan Participation DELPHI CORP: Moody's Places Corporate Family Rating at (P)B2 DENVER RADIO: Files Schedules of Assets & Liabilities DENVER RADIO: Wants to Hire Brownstein Hyatt as Bankruptcy Counsel DENVER RADIO: Section 341(a) Meeting Scheduled for January 28 DERCO INC: U.S. Trustee Appoints Two-Member Creditors Committee DERCO INC: Committee Wants to Hire Manasian & Rougeau as Counsel DERCO INC: Given Interim Okay to Use LaSalle's Cash Collateral DOLLAR GENERAL: Richard Dreiling Appointed as CEO DURA AUTOMOTIVE: Wants to Move Plan-Filing Deadline to April 30 DURA AUTOMOTIVE: Pacificor Still Silent on Deal Outlook E3 BIOFUELS: Prime BioSolutions Sets Sight on Ethanol Plant FEDDERS CORP: Court Approves Bidding Procedure for Units' Business FORD CREDIT: Fitch To Put 'BB' Rating on $43.8MM Class D Notes FORD CREDIT: Moody's Places (P)Ba2 Rating on Class D Notes FORD CREDIT: S&P Rates $43.8 Million Class D Notes at BB+ GMAC COMMERCIAL: Fitch Holds Low-B Ratings on Six Cert. Classes GULF STREAM: S&P Places Three Junk Ratings on Negative Watch GOODMAN GLOBAL: Moody's Puts Ba3 Rating on First Lien Sr. Loan KEVIN COOK: Can Hire Butler & Butler as Bankruptcy Counsel KEVIN COOK: Administrator Fails to Form Creditors' Committee HARBORS AT LAKE SINCLAIR: Case Summary & 20 Largest Creditors HARRAH'S ENTERTAINMENT: Expects to Close Apollo Deal on January 28 HARRY NEAL: Case Summary & Four Largest Unsecured Creditors HARTSHORNE CDO: Six Classes Acquire S&P's Junk Ratings HEARTLAND AUTOMOTIVE: Wants to Employ White & Case as Attorney HEARTLAND AUTO: Wants to Borrow $10 Mil. DIP Fund from Quad-C Unit HORNBECK OFFSHORE: Earns $28.9 Million in 2007 Third Quarter INDYMAC BANCORP: Cuts Workforce by 24%; To Take $25 Mil. Charge INDYMAC MORTGAGE: Moody's Cuts Three Tranches' Ratings to Low-B INTERIM HEALTH CARE: Case Summary & Four Largest Unsec. Creditors INTERSTATE BAKERIES: Wants Uniform Solicitation Procedures Okayed JOHN CAPPIALI: Voluntary Chapter 11 Case Summary JP MORGAN: Four Tranches Acquires Moody's Junk Ratings JP MORGAN: Moody's Attaches Low-B Ratings on Six Classes JUAN RIVERA RIVERA: Case Summary & 14 Largest Unsecured Creditors KELLWOOD CO: Adjusts Financial Results on Closed Smart Shirts Sale KRUTI ENTERPRISE: Case Summary & 20 Largest Unsecured Creditors LANCER FUNDING: S&P Attaches Junk Ratings on Four Classes LEHMAN XS: Eight Tranches Acquire Moody's Junk Ratings LIFECARE HOLDINGS: Wayne McAlister Named as CEO and President LIFECARE HOLDINGS: Moody's Keeps Caa1 Corporate Family Rating LIMITED BRANDS: December 2007 Sales Decrease 7% at $1.7 Billion MACKLOWE PROPERTIES: CB Richard Ellis Hired to Sell GM Building MARY STATEN-LONG: Case Summary & Six Largest Unsecured Creditors MASTR ADJUSTABLE: Two Tranches Acquire Moody's Junk Ratings MAXJET AIRWAYS: Court Approves Epiq Bankruptcy as Claims Agent MAXJET AIRWAYS: Taps Pillsbury Winthrop as Co-Counsel MAXJET AIRWAYS: U.S. Trustee Appoints Five-Member Creditors Panel MCCLATCHY CO: Inks Advertising Platform Pacts with ImpreMedia METROPCS COMMUNICATIONS: Inks Purchase Agreements with PTA Comms MORTGAGE LENDERS: Wants Plan Filing Period Extended to April 1 MORTGAGE LENDERS: Court Approves Pacts with Four U.S. States MORTGAGE LENDERS: Court Okays Settlement Deal w/ Marix Servicing MOVIE GALLERY: Wants Exclusive Period Further Extended to June 13 MOVIE GALLERY: Wants Lease Decision Period Extended to May 13 MOVIE GALLERY: Court Extends Removal Period to July 14 NEW YORK RACING: Wants Exclusive Period Extended to March 14 NEUMANN HOMES: Taps Hilco Real as Special Real Estate Consultant NEUMANN HOMES: To Sell Precision Framing Assets for $1 Million NEW CENTURY: Wants Exclusive Period Extended to January 28 NEW CENTURY: Examiner Seeks Second Extension to File Report NEW CENTURY: Wants Reply to Examiner's Report Placed Under Seal NEXEN INC: Says Reports on Break Up of Business are Incorrect NOMURA ASSET: Moody's Junks 17 Tranches' Ratings on Delinquency PASCACK VALLEY: Fitch Holds and Withdraws Rating on $50.8MM Bonds PATTY HAYES: Case Summary & Four Largest Unsecured Creditors PERFORMANCE DISTRIBUTION: Case Summary & 18 Largest Creditors PETROLEUM DEVELOPMENT: Moody's Rates $250MM Notes Offering at B3 POPE & TALBOT: Panel Taps Blank Rome as Bankruptcy Co-Counsel POPE & TALBOT: Panel Selects Jefferies & Co. as Financial Advisor PROPEX INC: Moody's Cuts Corp. Family Rating to Caa2 from Caa1 PSYCHIATRIC SOLUTIONS: Earns $20.3 Million in 2007 Third Quarter SOLIDUS NETWORKS: Appoints New Board of Directors SOTHEBY'S: Inks $370 Mil. York Property Buyback Deal With RFR STREETLIGHT INTELLIGENCE: Stock Drop Cues Appointment of New CEO STRUCTURED ADJUSTABLE: Moody's Junks Ratings on Five Tranches SUNCOM WIRELESS: Posts $5.1 Million Net Loss in 2007 3rd Quarter TBW MORTGAGE: Moody's Chips Ratings on Five Tranches to Low-B TERWIN MORTGAGE: Moody's Gives Junk Ratings on Three Tranches TITAN INTERNATIONAL: Moody's Junks Rating on $200 Mil. Notes UAP HOLDING: S&P Says Deal Delays Won't Affect Agrium's Rating VERTICAL ABS: Moody's Junks Ratings on $229 Mil. Notes from B2 VICTOR PLASTICS: Files Chapter 11 Bankruptcy in Minnesota VICTOR PLASTICS: Case Summary & 13 Largest Unsecured Creditors VICTORIA FINANCE: Technical Default Prompts S&P's 'D' Ratings VOLANS FUNDING: S&P Puts Three Low-B Ratings on Negative Watch WAMU MORTGAGE: 11 Tranches Obtain Moody's Junk Ratings WASHINGTON MUTUAL: Moody's Gives Junk Ratings to Four Tranches WESTWAYS FUNDING: Fitch Junks Ratings on Seven Note Classes WESTWAYS FUNDING: Fitch Withdraws Ratings on Five Note Classes WILLIAM LOTHRINGER: Case Summary & 9 Largest Unsecured Creditors WINONA ELEVATOR: Case Summary & 19 Largest Unsecured Creditors WR GRACE: Court Approves U.S. Trustee's Plea to Appoint Examiner * S&P Cuts Ratings on 56 Classes from 32 Net Interest Securities * MortgageDaily.com Says Mortgage Sector Suffer Losses in 2007 * Oklahoma Bankruptcy Filings Rose 31% in 2007 * Three Banks Get Hit by Credit Market Downturn * Donlin Recano Elected as Johnson Rubber's Claims Agent * SulmeyerKupetz Named Chapter 7 Trustee of Axium's Case * Richard A. Weiland Appointed as U.S. Trustee for Region 20 * Upcoming Meetings, Conferences and Seminars ********* 360 GLOBAL: 360 Viansa Emerges from Bankruptcy Protection --------------------------------------------------------- The Chapter 11 Second Amended Plan of Reorganization filed by 360 Viansa LLC, an affiliate of 360 Global Wine Company Inc., became effective on Jan. 11, 2008, Bloomberg News Reports. As reported in the Troubled Company Reporter on Dec. 17, 2007, the U.S. Bankruptcy Court for the District of Nevada confirmed Viansa's Plan. The Debtors' Plan proposed to sell 100% of the equity in the reorganized Debtors to the highest bidder free and clear of all liens to fund and implement the Plan. The Debtors told the Court that if Laurus Master Fund Ltd., a secured creditor of the Debtors, is the successful bidder, Croesus Corporation's secured claim will remain in place with the reorganized Debtor. Additionally, the Debtors said the successful bidder can elect to assume or reject the agreement with General Electric Capital Corporation. If the successful bidder elects to assume the agreement, it will set aside sufficient funds to pay the cure and fair market value of the equipment subject to the leases. On Dec. 17, 2007, Laurus was declared the successful bidder and will be entitled to receive 100% of the equity securities in the reorganized Viansa, free and clear of all liens and claims. Overview of the Plan Under the Plan, an auction will be held, on the date of the confirmation hearing, in Court for up to 100% of the equity security interest in the reorganized Viansa, excluding the assigned litigation and excluding the Carneros Warehousing escrow, free and clear of all liens, claims and encumberances. Carneros Warehousing is owner of real property at 21481 Eighth Street, Sonoma, California, which is currently occupied by Viansa. Laurus Master Fund Ltd. has agreed to be the stalking horse bidder with a starting credit bid of $40,667,075. Treatment of Claims Under the Plan, Administrative Claims will be paid in full on the effective date. At the option of the reorganized Debtors, holders of Priority Tax Claims, totaling approximately $635,000, will be paid, either: a. cash on the effective date; or b. deferred cash payments, in equal quarterly installments with interest at the federal interest rate, estimated at 6% per annum. New Vine Logistics' secured claim will receive payment of $417,000 in cash, in full and complete satisfaction of its claim on the effective date. Allowed holders of statutory lien claims, totaling $20,000, filed prior to the bar date will be paid in full on the effective date. Croesus Corporation and Laurus' secured claim will be paid in full from the proceeds of the sale on the effective date. Gryphon Master Fund LP's secured claim will also be paid in full from the balance of the sale proceeds. Dell Financial Services LP, General Motors Acceptance Corporation, Key Equipment Finance, and US Bancorp's secured claims will be paid according to the terms stated in their respective prepetition agreements with the Debtors, or the release of their collateral in full, at the option of the successful bidder. Administrative Convenience Claims consist of General Unsecured Claims will receive pro rata distribution of a lump sum of $150,000 on the effective date. General Unsecured Claims, totaling approximately $1.5 million, not including any potential deficiency claim of Grypon, will be entitled to receive pro rata distribution of $150,000 after the effective date and holders will also receive the net proceeds from the assigned litigation after all allowed professional fees are paid. Global's Equity Security Interest in Viansa will be cancelled and new equity security interest up to 100% will be issued to the successful bidder at the confirmation hearing. About 360 Global Wine Headquartered in Los Angeles, California, 360 Global Wine Company and 360 Viansi LLC -- http://www.360wines.com/-- are small, diversified marketers of wine and alcoholic beverages. The company filed for Chapter 11 protection on March 7, 2007 (Bankr. Nev. Case No. 07-50205). 360 Viansa LLC, an affiliate, filed a separate chapter 11 petition on the same day (Bankr. Nev. Case No. 07-50206). Brett A. Axelrod, Esq., at Beckley Singleton, Chartered and Bridget Robb Peck, Esq., at Lewis and Roca LLP represent the Debtors in their restructuring efforts. David A. Honig, Esq., and Todd J. Dressel, Esq., at Winston & Strawn LLP, represent the Official Committee of Unsecured Creditors. Zachary J. Wadle, Esq., at McDonald Carano Wilson LLP serves as counsel to the Ad Hoc Committee of Creditors Holding Unsecured Claims. In their petition, 360 Global Wine listed total assets of $43 million and total debts of $39 million while 360 Viansa listed total assets and debts between $1 million to $100 million. ACA ABS: Six Classes Obtain S&P's Junk Ratings ---------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 24 classes from four collateralized debt obligations of asset-backed securities after receiving notices from the trustees stating that a majority of the controlling classes of the transactions were directing the trustee to proceed with the liquidation of the collateral supporting the rated notes. Three of the transactions (BFC Silverton CDO Ltd., ACA ABS 2007-2 Ltd., and Hartshorne CDO I Ltd.) are hybrid CDOs of ABS collateralized in large part by mezzanine tranches of residential mortgage-backed securities and other structured finance transactions; the fourth transaction (Lancer Funding II Ltd.) is a cash flow CDO collateralized predominantly by tranches of CDOs that are collateralized in part by RMBS. Sixteen of the 24 lowered ratings either remain on CreditWatch negative or were placed on CreditWatch negative, indicating a high likelihood of further downgrades. All four transactions had previously experienced events of default after failing to maintain coverage ratios above the minimum threshold levels specified in section 5.1 of their indentures. Details are: -- Hartshorne CDO I Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 9, 2007, under section 5.1(h) of the indenture after the transaction failed its senior credit test. -- BFC Silverton CDO Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 13, 2007, under section 5.1(d) of the indenture after the class A/B par value coverage ratio fell to less than 100%. -- Lancer Funding II Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 16, 2007, under section 5.1(h) of the indenture after the senior credit ratio fell to less than 100%. -- ACA ABS 2007-2 Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Oct. 18, 2007, under section 5.1(h) of the indenture after the senior credit ratio fell to less than 100%. These rating actions on these four transactions reflect Standard & Poor's opinion regarding the impact of a potential liquidation of the collateral at the current depressed market prices. The rating actions reflect S&P's opinion that substantial losses to the noteholders are highly likely based on the current market value of the collateral and S&P's view that market prices may not recover during the liquidation period. Zais Group LLC is the manager for Hartshorne CDO I Ltd., Braddock Financial Corp. is the manager for BFC Silverton CDO Ltd., and ACA Management LLC is the manager for Lancer Funding II Ltd. and ACA ABS 2007-2 Ltd. Standard & Poor's will continue to monitor the CDO transactions it rates and take rating actions (including CreditWatch placements) as appropriate given the performance of the underlying collateral, the credit enhancement afforded by each CDO structure, and the then-current priority of payments specified in each transaction's legal documentation. Downgrades and CreditWatch Actions Rating ------ Transaction Class To From ----------- ----- -- ---- BFC Silverton CDO Ltd. A Liq fac BB/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. B1 CCC-/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. B2 CCC-/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. C CCC-/Watch Neg A+/Watch Neg BFC Silverton CDO Ltd. D CC BBB-/Watch Neg BFC Silverton CDO Ltd. E CC B-/Watch Neg Hartshorne CDO I Ltd. X BB/Watch Neg AAA Hartshorne CDO I Ltd. A-1S BB/Watch Neg AAA Hartshorne CDO I Ltd. A-1J CCC-/Watch Neg A/Watch Neg Hartshorne CDO I Ltd. A-2 CCC-/Watch Neg BBB/Watch Neg Hartshorne CDO I Ltd. A-3 CC BB-/Watch Neg Hartshorne CDO I Ltd. B1 CC B-/Watch Neg Hartshorne CDO I Ltd. B2 CC CCC/Watch Neg Lancer Funding II Ltd. X BB/Watch Neg AAA Lancer Funding II Ltd. A1S BB/Watch Neg AA+/Watch Neg Lancer Funding II Ltd. A1J CCC-/Watch Neg CCC+/Watch Neg ACA ABS 2007-2 Ltd. X BB/Watch Neg AAA ACA ABS 2007-2 Ltd. A1S BB/Watch Neg AAA ACA ABS 2007-2 Ltd. A1M CCC-/Watch Neg AAA ACA ABS 2007-2 Ltd. A1J CCC-/Watch Neg A- ACA ABS 2007-2 Ltd. A2 CCC-/Watch Neg BBB/Watch Neg ACA ABS 2007-2 Ltd. A3 CC BB/Watch Neg ACA ABS 2007-2 Ltd. B1 CC B-/Watch Neg ACA ABS 2007-2 Ltd. B2 CC CCC+/Watch Neg Other Outstanding Ratings Transaction Class Rating ----------- ----- ------ BFC Silverton CDO Ltd. F CC Hartshorne CDO I Ltd. B3 CC Lancer Funding II Ltd. A2 CC Lancer Funding II Ltd. A3 CC Lancer Funding II Ltd. B CC AEGIS MORTGAGE: Wants February 15 Set as Admin Claims Bar Date -------------------------------------------------------------- Aegis Mortgage Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to: (i) set Feb. 15, 2008, as the deadline for parties to file requests for payment of administrative expenses arising as of Jan. 1, 2008; and (ii) approve the form of the Bar Date's notice and the manner of disseminating the notice. Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, says the request, if approved, will allow the Debtors to ascertain the nature and amounts of the administrative claims and have time to review and, if necessary, object to the claims. Although the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure do not specifically set a deadline for filing requests for payment of administrative expense claims, Sections 503(a) and 105(a) grant authority for the establishment of a bar date for filing the requests, according to Mr. Cairns. "Section 503 (a) permits timely requests for payment of administrative expenses, and thus presupposes the establishment of a deadline for filing such requests," Mr. Cairns points out. He adds that the Court has the discretion to fix deadlines for filing the requests under Section 105(a). Mr. Cairns says that the bar date will not apply to these administrative claims and fees: -- fees payable to the Office of the United States Trustee; -- claims that have already been approved by the Court; -- those that have been paid in full prior to the bar date; -- claims of governmental units that are subject to Section 503(b)(1)(D) of the Bankruptcy Code; -- claims against the Debtors' estates arising under Section 503(b)(9) or otherwise subject to the Existing Bar Date Order; and -- claims of the Debtors' professionals or of the Official Committee of Unsecured Creditors arising under Sections 327, 328, 330, 331, 503(b)(2) or 1103. Any party who fails to file the claim by the deadline will be forever barred, estopped and enjoined from asserting or receiving any distribution with respect to any administrative claim, according to Mr. Cairns. Meanwhile, the Debtors will be forever discharged and released from any indebtedness or liability with respect to the claim. About Aegis Mortgage Headquartered in Houston, Texas, Aegis Mortgage Corporation -- http://www.aegismtg.com/-- offers a variety of mortgage loan products to brokers through its subsidiaries. The company together with 10 affiliates filed for chapter 11 protection on Aug. 13, 2007 (Bankr. D. Del. Case No. 07-11119) Curtis A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl, & Jones, L.L.P., serve as counsel to the Debtors. The Official Committee of Unsecured Creditors is represented by Landis Rath & Cobb LLP. In schedules filed with the Court, Aegis disclosed total assets of $138,265,342 and total debts of $4,125,470. (Aegis Bankruptcy News, Issue No. 14, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AEGIS MORTGAGE: Court Okays Capstone Advisory as Financial Advisor ----------------------------------------------------------------- The Official Committee of Unsecured Creditors appointed in Aegis Mortgage Corp. and its debtor-affiliates' bankruptcy cases sought and obtained approval from the U.S. Bankruptcy Court for the District of Delaware to retain Capstone Advisory Group, LLC, as its financial advisor, effective as of Sept. 18, 2007. As financial advisor to the Creditors Committee, Capstone Advisory is expected to: (a) advise and assist in analyzing and monitoring the Debtors' financial affairs; (b) advise and assist in understanding and responding to the proposed Management Incentive Program; (c) monitor any process undertaken by the Debtors to sell their businesses; (d) if requested, assist and advise the Creditors Committee and its counsel in reviewing and evaluating any request filed or to be filed by the Debtors and other parties- in-interest; (e) advise and assist in evaluating the retention arrangements for advisor to be retained by the Debtors; (f) advise and assist the Creditors Committee and its counsel in identifying and reviewing preference payments, fraudulent conveyances and other causes of action; (g) analyze the Debtors' assets and analyze the unsecured creditors' recovery; (h) analyze and make recommendations as to the best way to liquidate the Debtors' assets in an effort to maximize the recovery to general unsecured creditors and develop negotiating strategies to support the Creditors Committee's position; (i) assist and advise in evaluating and analyzing the Debtors' restructuring proposals; (j) develop a monitoring process that enables the Creditors Committee to evaluate the Debtors' performance on an ongoing basis; and (k) provide other services consistent with the Creditors Committee's role and duties as may be requested from time to time. The Creditors Committee proposes that Capstone be paid $60,000 a month for th first three-month period plus reimbursement of all out-of-pocket expenses. Capstone's hourly fees for the services of its staff range $100 per hour to $650 per hour. Capstone will maintain detailed, contemporaneous records of time and actual and necessary expenses incurred in connection with the services provided. The firm is not connected to the Debtors, their creditors or any parties-in-interest, and does not provide advisory services to other parties with adverse interest in connection with the Debtors' Chapter 11 cases, according to Edwin N. Ordway, Jr., member and manager of Capstone Advisory. About Aegis Mortgage Headquartered in Houston, Texas, Aegis Mortgage Corporation -- http://www.aegismtg.com/-- offers a variety of mortgage loan products to brokers through its subsidiaries. The company together with 10 affiliates filed for chapter 11 protection on Aug. 13, 2007 (Bankr. D. Del. Case No. 07-11119) Curtis A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl, & Jones, L.L.P., serve as counsel to the Debtors. The Official Committee of Unsecured Creditors is represented by Landis Rath & Cobb LLP. In schedules filed with the Court, Aegis disclosed total assets of $138,265,342 and total debts of $4,125,470. (Aegis Bankruptcy News, Issue No. 14, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERIQUEST MORTGAGE: Moody's Junks Ratings on 13 Certificates ------------------------------------------------------------- Moody's Investors Service has downgraded 37 certificates and placed on review for possible downgrade 12 certificates from 14 transactions issued by AMSI & ARSI for loans originated by Ameriquest Mortgage Company and Argent Mortgage Company respectively. The transactions are backed by adjustable and fixed- rate subprime mortgage loans. The Quest Trust 2003-X4 transaction is backed by "scratch and dent" seasoned and reperforming subprime mortgage loans. The actions and reviews are based on the analysis of the current credit enhancement levels provided by excess spread, overcollateralization, and subordinate classes relative to stressed estimates of future losses. Complete rating actions are: Issuer: Ameriquest Mortgage Securities Inc., 2002-4 -- Cl. M-3, Downgraded to Baa2 from A3, -- Cl. M-4, Downgraded to Ca from Ba2. Issuer: Ameriquest Mortgage Securities Inc., Quest Trust 2003-X4 -- Cl. M-2, Downgraded to B1 from Baa2, -- Cl. M-3, Downgraded to Caa2 from Ba3. Issuer: Ameriquest Mortgage Securities Inc., Ser 2003-6 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba1 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Caa3 from Caa1. Issuer: Ameriquest Mortgage Securities Inc., Series 2002-AR1 -- Cl. M-2, Placed on Review for Possible Downgrade, currently A1, -- Cl. M-3, Downgraded to Ca from Baa2, -- Cl. M-4, Downgraded to C from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-1 -- Cl. M-2, Downgraded to Ba1 from A2, -- Cl. MV-3, Downgraded to Ca from B1, -- Cl. MF-3, Downgraded to Ca from B1, -- Cl. M-4, Downgraded to C from Caa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-10 -- Cl. M-5, Downgraded to Ba2 from Baa2, -- Cl. MV-6, Downgraded to B3 from Baa3, -- Cl. MF-6, Downgraded to B3 from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-11 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-3B, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4B, Downgraded to Ba3 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Caa2 from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-12 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to B2 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Ca from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-2 -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2, -- Cl. M-2, Downgraded to Baa2 from A2. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-7 -- Cl. M-3, Downgraded to Ba1 from Baa1, -- Cl. M-4, Downgraded to B3 from Ba2, -- Cl. M-5, Downgraded to C from Caa1. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-AR2 -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2, -- Cl. M-2, Placed on Review for Possible Downgrade, currently A2, -- Cl. M-3, Downgraded to Ca from Caa1, -- Cl. M-4, Downgraded to C from Ca. Issuer: Argent Securities Inc., Series 2003-W10 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Placed on Review for Possible Downgrade, currently Baa1, -- Cl. M-5, Downgraded to B1 from Baa2, -- Cl. M-6, Downgraded to Caa2 from Baa3. Issuer: Argent Securities Inc., Series 2003-W3 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba1 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. MV-6, Downgraded to Ca from Baa3, -- Cl. MF-6, Downgraded to Ca from Baa3. Issuer: Argent Securities Inc., Series 2003-W8 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba3 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Ca from Baa3. AREI NEWHALL: Voluntary Chapter 11 Case Summary ----------------------------------------------- Lead Debtor: A.R.E.I. Newhall 9, L.L.C. 5 Ike Court Novato, CA 94945 Bankruptcy Case No.: 07-15210 Debtor-affiliate filing a separate Chapter 11 petition on January 14, 2008: Entity Case No. ------ -------- A.R.E.I. Newhall 25, L.L.C. 08-10220 Debtor-affiliates filing separate Chapter 11 petitions on January 3, 2008: Entity Case No. ------ -------- A.R.E.I. Newhall 28, L.L.C. 08-10062 A.R.E.I. Newhall 31, L.L.C. 08-10064 Debtor-affiliates filing separate Chapter 11 petitions on January 2, 2008: Entity Case No. ------ -------- A.R.E.I. Newhall 24, L.L.C. 08-10013 A.R.E.I. Newhall 20, L.L.C. 08-10018 Debtor-affiliate filing a separate Chapter 11 petition on December 25, 2007: Entity Case No. ------ -------- A.R.E.I. Newhall 10, L.L.C. 07-15156 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- A.R.E.I. Newhall 5, L.L.C. 07-15211 A.R.E.I. Newhall 27, L.L.C. 07-15212 A.R.E.I. Newhall 32, L.L.C. 07-15213 A.R.E.I. Newhall 30, L.L.C. 07-15214 A.R.E.I. Newhall 16, L.L.C. 07-15215 A.R.E.I. Newhall 18, L.L.C. 07-15216 A.R.E.I. Newhall 29, L.L.C. 07-22209 A.R.E.I. Newhall 3, L.L.C. 07-15244 A.R.E.I. Newhall 4, L.L.C. 07-15246 Type of Business: The Debtors own and manages real estate. Chapter 11 Petition Date: December 27, 2007 Court: Central District Of California (San Fernando Valley) Judge: Maureen Tighe Debtors' Counsel: David A. Tilem, Esq. 206 North Jackson Street, Suite 201 Glendale, CA 91206 Tel: (818) 507-6000 Fax: (818) 507-6800 Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 9, L.L.C. $6,788,861 $24,000,000 A.R.E.I. Newhall 5, L.L.C. $625,293 $24,000,000 A.R.E.I. Newhall 27, L.L.C. $771,417 $24,000,000 A.R.E.I. Newhall 32, L.L.C. $586,676 $24,000,000 A.R.E.I. Newhall 30, L.L.C. $277,722 $24,000,000 A.R.E.I. Newhall 16, L.L.C. $428,922 $24,000,000 A.R.E.I. Newhall 18, L.L.C. $1,343,520 $24,000,000 A.R.E.I. Newhall 29, L.L.C. $586,278 $24,000,000 A.R.E.I. Newhall 3, L.L.C. $911,007 $24,000,000 A.R.E.I. Newhall 4, L.L.C. $890,217 $24,000,000 Financial Condition of Debtor filing a separate Chapter 11 petition on December 25, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 10, L.L.C. $661,932 $24,000,000 Financial Condition of Debtors filing separate Chapter 11 petitions on January 2, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 24, L.L.C. $462,861 $24,000,000 A.R.E.I. Newhall 20, L.L.C. $200,880 $24,000,000 Financial Condition of Debtors filing separate Chapter 11 petitions on January 3, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 28, L.L.C. $366,930 $24,000,000 A.R.E.I. Newhall 31, L.L.C. $335,583 $24,000,000 Financial Condition of Debtor filing separate a Chapter 11 petition on January 14, 2008: Total Assets Total Debts ------------ ----------- A.R.E.I. Newhall 25, L.L.C. $385,722 $24,000,000 The Debtors did not file lists of their 20 largest unsecured creditors. ARGENT MORTGAGE: Four Certificates Obtain Moody's Junk Ratings -------------------------------------------------------------- Moody's Investors Service has downgraded 37 certificates and placed on review for possible downgrade 12 certificates from 14 transactions issued by AMSI & ARSI for loans originated by Ameriquest Mortgage Company and Argent Mortgage Company respectively. The transactions are backed by adjustable and fixed- rate subprime mortgage loans. The Quest Trust 2003-X4 transaction is backed by "scratch and dent" seasoned and reperforming subprime mortgage loans. The actions and reviews are based on the analysis of the current credit enhancement levels provided by excess spread, overcollateralization, and subordinate classes relative to stressed estimates of future losses. Complete rating actions are: Issuer: Argent Securities Inc., Series 2003-W10 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Placed on Review for Possible Downgrade, currently Baa1, -- Cl. M-5, Downgraded to B1 from Baa2, -- Cl. M-6, Downgraded to Caa2 from Baa3. Issuer: Argent Securities Inc., Series 2003-W3 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba1 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. MV-6, Downgraded to Ca from Baa3, -- Cl. MF-6, Downgraded to Ca from Baa3. Issuer: Argent Securities Inc., Series 2003-W8 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba3 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Ca from Baa3. Issuer: Ameriquest Mortgage Securities Inc., 2002-4 -- Cl. M-3, Downgraded to Baa2 from A3, -- Cl. M-4, Downgraded to Ca from Ba2. Issuer: Ameriquest Mortgage Securities Inc., Quest Trust 2003- X4 -- Cl. M-2, Downgraded to B1 from Baa2, -- Cl. M-3, Downgraded to Caa2 from Ba3. Issuer: Ameriquest Mortgage Securities Inc., Ser 2003-6 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to Ba1 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Caa3 from Caa1. Issuer: Ameriquest Mortgage Securities Inc., Series 2002-AR1 -- Cl. M-2, Placed on Review for Possible Downgrade, currently A1, -- Cl. M-3, Downgraded to Ca from Baa2, -- Cl. M-4, Downgraded to C from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-1 -- Cl. M-2, Downgraded to Ba1 from A2, -- Cl. MV-3, Downgraded to Ca from B1, -- Cl. MF-3, Downgraded to Ca from B1, -- Cl. M-4, Downgraded to C from Caa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-10 -- Cl. M-5, Downgraded to Ba2 from Baa2, -- Cl. MV-6, Downgraded to B3 from Baa3, -- Cl. MF-6, Downgraded to B3 from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-11 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-3B, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4B, Downgraded to Ba3 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Caa2 from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-12 -- Cl. M-3, Placed on Review for Possible Downgrade, currently A3, -- Cl. M-4, Downgraded to B2 from Baa1, -- Cl. M-5, Downgraded to B3 from Baa2, -- Cl. M-6, Downgraded to Ca from Baa3. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-2 -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2, -- Cl. M-2, Downgraded to Baa2 from A2. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-7 -- Cl. M-3, Downgraded to Ba1 from Baa1, -- Cl. M-4, Downgraded to B3 from Ba2, -- Cl. M-5, Downgraded to C from Caa1. Issuer: Ameriquest Mortgage Securities Inc., Series 2003-AR2 -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2, -- Cl. M-2, Placed on Review for Possible Downgrade, currently A2, -- Cl. M-3, Downgraded to Ca from Caa1, -- Cl. M-4, Downgraded to C from Ca. AXIUM INTERNATIONAL: SulmeyerKupetz Named as Chapter 7 Trustee -------------------------------------------------------------- SulmeyerKupetz said that Howard M. Ehrenberg, partner at the firm, has been appointed Trustee of Axium International Inc. by the Office of the United States Trustee effective Jan. 9, 2008. Mr. Ehrenberg immediately took over all finances and operations of the company. Axium, one of three major companies that processed payrolls for and provided related services to production companies, studios, trade unions and other entertainment-industry clients, filed for Chapter 7 bankruptcy protection on Jan. 8, 2008. The action was a result of primary lender Golden Tree Asset Management seizing $22 million from Axium bank accounts because the company defaulted on a $140-million loan. The assets seizure left the company unable to honor its payroll obligations and continue to operate. Axium laid off all of its employees and closed its offices in Los Angeles, New York, Toronto and London. "As the court-appointed Trustee of the Axium Chapter 7 bankruptcy my duty is to liquidate the company's assets in an attempt to ensure repayment of debt to its unsecured creditors," Mr. Ehrenberg said. "Axium handled approximately $3 billion last year in payroll and related services and is estimated to have assets worth more than $100 million. The sale of the company's assets, including its proprietary software program RightsMax, will be used to recoup money for creditors." Mr. Ehrenberg was recently Trustee for the Queen's Seaport Development Inc., the developer which oversaw the 66-year lease of the Queen Mary and surrounding 40 acres, which filed for bankruptcy protection in March 2005. QSDI was ultimately sold for $43 million last summer at auction ensuring repayment of debt to secured creditors. Mr. Ehrenberg is a member of the Chapter 7 Bankruptcy Panel of Trustees, appointed by the Office of the United States Trustee, and a state court receiver. He is certified as a Business Bankruptcy Law Specialist by the American Bankruptcy Board of Certification and member of the Los Angeles Bankruptcy Forum, the Financial Lawyers Conference, American Bankruptcy Institute and Council of Certified Bankruptcy Specialists. Mr. Ehrenberg is also a member of the Executive Board of the Commercial Law and Bankruptcy Section of the Los Angeles County Bar Association and a former commissioner in the City of Burbank, California. About SulmeyerKupetz SulmeyerKupetz -- http://www.sulmeyerlaw.com/-- is a Los Angeles- based law firm that specializes in bankruptcy, business reorganizations, litigation and commercial collections. Established in 1952, SulmeyerKupetz has vast experience representing a variety of clients in all aspects of insolvency proceedings, including out-of-court debt restructurings, negotiation and implementation of complex Chapter 11 plans, debtor-in-possession financing, acquisitions and asset sales for distressed businesses, and bankruptcy litigation. The firm represents both secured and unsecured creditors, lessors, creditors' committees, debtors, governmental entities, trustees and receivers. The firm also serves as local counsel on cases being managed outside of California. About Axium International Axium International Inc. -- http://www.axium.com/-- has nearly two decades of experience in the entertainment industry by providing payroll solutions for production. It offers various financial services and technology for the entertainment industry through Axium Global and Axium Global Workforce. It serves companies ranging from mid-market to Fortune 500. Axium International has offices in Los Angeles, New York, Burbank, Hollywood, Las Vegas, Toronto, Vancouver and London. BANK OF AMERICA: Moody's Cuts Ratings on Six Tranches to Low-B -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of 16 tranches and has placed under review for possible downgrade the ratings of 14 tranches from 4 deals issued by Bank of America in 2007. The collateral backing these classes consists of primarily first lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its re-rating Moody's has also applied its published methodology updates to the non delinquent portion of the transactions. Complete list of rating actions: Issuer: Banc of America Funding 2007-1 Trust, Mortgage Pass- Through Certificates, Series 2007-1 -- Cl. T-A-3A Currently Aaa on review for possible downgrade, -- Cl. T-A-3B Currently Aaa on review for possible downgrade, -- Cl. T-A-4 Currently Aaa on review for possible downgrade, -- Cl. T-A-5 Currently Aaa on review for possible downgrade, -- Cl. T-A-7 Currently Aaa on review for possible downgrade, -- Cl. T-A-8 Currently Aaa on review for possible downgrade, -- Cl. T-A-9 Currently Aaa on review for possible downgrade, -- Cl. T-A-10 Currently Aaa on review for possible downgrade, -- Cl. T-A-6 Currently Aa1 on review for possible downgrade, -- Cl. T-A-11 Currently Aa1 on review for possible downgrade, -- Cl. T-M-1 Currently Aa2 on review for possible downgrade, -- Cl. T-M-2, Downgraded to Baa3, previously A2, -- Cl. T-M-3, Downgraded to Ba2, previously A3, -- Cl. T-M-4, Downgraded to B1, previously Baa2, -- Cl. T-M-5, Downgraded to B3, previously Baa3. Issuer: Banc of America Funding 2007--2 Trust -- Cl. T-M-2, Downgraded to A3, previously A2, -- Cl. T-M-3, Downgraded to Baa2, previously A3, -- Cl. T-M-4, Downgraded to Baa3, previously Baa2, -- Cl. T-M-5, Downgraded to Ba1, previously Baa3. Issuer: Banc of America Funding 2007-3 Trust -- Cl. T-M-1A Currently Aa2 on review for possible downgrade, -- Cl. T-M-1B Currently Aa2 on review for possible downgrade, -- Cl. T-M-2, Downgraded to A3, previously A2, -- Cl. T-M-3, Downgraded to Baa1, previously A3, -- Cl. T-M-4, Downgraded to Baa3, previously Baa2, -- Cl. T-M-5, Downgraded to Ba2, previously Baa3. Issuer: Banc of America Funding 2007-4 Trust -- Cl. T-M-1 Currently Aa2 on review for possible downgrade, -- Cl. T-M-2, Downgraded to Baa2, previously A2, -- Cl. T-M-3, Downgraded to Baa3, previously A3, -- Cl. T-M-4, Downgraded to Ba3, previously Baa2, -- Cl. T-M-5, Downgraded to Caa1, previously Baa3. BFC SILVERTON: S&P Places Junk Ratings on Six Classes ----------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 24 classes from four collateralized debt obligations of asset-backed securities after receiving notices from the trustees stating that a majority of the controlling classes of the transactions were directing the trustee to proceed with the liquidation of the collateral supporting the rated notes. Three of the transactions (BFC Silverton CDO Ltd., ACA ABS 2007-2 Ltd., and Hartshorne CDO I Ltd.) are hybrid CDOs of ABS collateralized in large part by mezzanine tranches of residential mortgage-backed securities and other structured finance transactions; the fourth transaction (Lancer Funding II Ltd.) is a cash flow CDO collateralized predominantly by tranches of CDOs that are collateralized in part by RMBS. Sixteen of the 24 lowered ratings either remain on CreditWatch negative or were placed on CreditWatch negative, indicating a high likelihood of further downgrades. All four transactions had previously experienced events of default after failing to maintain coverage ratios above the minimum threshold levels specified in section 5.1 of their indentures. Details are: -- Hartshorne CDO I Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 9, 2007, under section 5.1(h) of the indenture after the transaction failed its senior credit test. -- BFC Silverton CDO Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 13, 2007, under section 5.1(d) of the indenture after the class A/B par value coverage ratio fell to less than 100%. -- Lancer Funding II Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Nov. 16, 2007, under section 5.1(h) of the indenture after the senior credit ratio fell to less than 100%. -- ACA ABS 2007-2 Ltd.: The liquidation notice followed a previous notice declaring an EOD as of Oct. 18, 2007, under section 5.1(h) of the indenture after the senior credit ratio fell to less than 100%. These rating actions on these four transactions reflect Standard & Poor's opinion regarding the impact of a potential liquidation of the collateral at the current depressed market prices. The rating actions reflect S&P's opinion that substantial losses to the noteholders are highly likely based on the current market value of the collateral and S&P's view that market prices may not recover during the liquidation period. Zais Group LLC is the manager for Hartshorne CDO I Ltd., Braddock Financial Corp. is the manager for BFC Silverton CDO Ltd., and ACA Management LLC is the manager for Lancer Funding II Ltd. and ACA ABS 2007-2 Ltd. Standard & Poor's will continue to monitor the CDO transactions it rates and take rating actions (including CreditWatch placements) as appropriate given the performance of the underlying collateral, the credit enhancement afforded by each CDO structure, and the then-current priority of payments specified in each transaction's legal documentation. Downgrades and CreditWatch Actions Rating ------ Transaction Class To From ----------- ----- -- ---- BFC Silverton CDO Ltd. A Liq fac BB/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. B1 CCC-/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. B2 CCC-/Watch Neg AAA/Watch Neg BFC Silverton CDO Ltd. C CCC-/Watch Neg A+/Watch Neg BFC Silverton CDO Ltd. D CC BBB-/Watch Neg BFC Silverton CDO Ltd. E CC B-/Watch Neg Hartshorne CDO I Ltd. X BB/Watch Neg AAA Hartshorne CDO I Ltd. A-1S BB/Watch Neg AAA Hartshorne CDO I Ltd. A-1J CCC-/Watch Neg A/Watch Neg Hartshorne CDO I Ltd. A-2 CCC-/Watch Neg BBB/Watch Neg Hartshorne CDO I Ltd. A-3 CC BB-/Watch Neg Hartshorne CDO I Ltd. B1 CC B-/Watch Neg Hartshorne CDO I Ltd. B2 CC CCC/Watch Neg Lancer Funding II Ltd. X BB/Watch Neg AAA Lancer Funding II Ltd. A1S BB/Watch Neg AA+/Watch Neg Lancer Funding II Ltd. A1J CCC-/Watch Neg CCC+/Watch Neg ACA ABS 2007-2 Ltd. X BB/Watch Neg AAA ACA ABS 2007-2 Ltd. A1S BB/Watch Neg AAA ACA ABS 2007-2 Ltd. A1M CCC-/Watch Neg AAA ACA ABS 2007-2 Ltd. A1J CCC-/Watch Neg A- ACA ABS 2007-2 Ltd. A2 CCC-/Watch Neg BBB/Watch Neg ACA ABS 2007-2 Ltd. A3 CC BB/Watch Neg ACA ABS 2007-2 Ltd. B1 CC B-/Watch Neg ACA ABS 2007-2 Ltd. B2 CC CCC+/Watch Neg Other Outstanding Ratings Transaction Class Rating ----------- ----- ------ BFC Silverton CDO Ltd. F CC Hartshorne CDO I Ltd. B3 CC Lancer Funding II Ltd. A2 CC Lancer Funding II Ltd. A3 CC Lancer Funding II Ltd. B CC BIO-RAD LABS: S&P Upgrades Corporate Credit Rating -------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Hercules, California-based Bio-Rad Laboratories Inc. to 'BBB-' from 'BB+' following a review of the company's financial policies. "The upgrade reflects our expectation that Bio-Rad will maintain a financial risk profile appropriate for an investment-grade rating while conducting small acquisitions," said Standard & Poor's credit analyst David Lugg, "with significant acquisitions a rare event following by rapid deleveraging." BLACKBOARD INC: To Acquire NTI Group for $182 Million ----------------------------------------------------- Blackboard Inc. disclosed a definitive agreement to acquire privately-held NTI Group, Inc. Under terms of the agreement, Blackboard will acquire NTI for $182 million subject to certain adjustments. The purchase price will be paid $132 million in cash and $50 million in stock. In addition, up to an additional $17 million in consideration may be paid in stock based on attainment of certain financial targets over the two years following the close of the acquisition. This acquisition enables Blackboard to better help institutions address several key challenges and trends which are taking place within the education community, namely: 1. As online learning continues to grow and more institutions utilize the internet to connect with traditional and virtual students, it is becoming increasingly important to have the capability to deliver mass communications with large populations of users across an array of technical devices; 2. In addition, it has become imperative that academic institutions have the ability to quickly and effectively communicate with their entire campus constituency in the wake of a range of school and campus tragedies, severe weather and other safety concerns; and 3. Institutions are focusing on mobile-centric strategies and looking to tightly integrate their learning environments with cell phones and PDAs. In addition, this positions Blackboard to assist Governmental agencies and municipalities which are also increasingly expected to reach their entire constituencies directly in an expeditious, time sensitive and cost-effective manner in the event of serious public safety matters. The acquisition of the NTI Group moves Blackboard into the fast- growing alert and notification market, forecast by Yankee Group to grow to an estimated $1.2 billion in revenue in the United States by 2011, representing a five-year compounded average annual growth rate of over 30%. The combination of Blackboard and NTI adds another mission-critical offering to Blackboard's existing suite of enterprise products and fulfills a key education technology priority. The addition of NTI's Connect-ED offering will allow Blackboard to extend its leadership in North American higher education and establish a much more significant presence with U.S. K-12 institutions where NTI has already established a significant client base. NTI is located in Sherman Oaks, California and provides comprehensive communication services designed specifically for academic institutions as well as local, state and federal government entities. As of the third quarter of 2007, NTI had more than 1,200 contracts for the Connect-ED system in the U.S. K-12 market covering more than 14,000 schools and districts. NTI had 130 contracts in the U.S. higher education market covering approximately 200 colleges and universities. Additionally, the Connect-CTY, Connect-GOV and Connect-MIL services provide mass notification functionality to a fast growing number of municipal, government and military customers. The company's mass notification systems are designed to allow users to quickly and easily record and send time-sensitive notifications to thousands of people in minutes using just a computer or telephone. The NTI service operates as a fully hosted, fully managed Application Service Provider/Software as a Service; users are able to deploy a complete messaging and notification system without investing in, or maintaining, hardware, software, or additional phone lines. Messages can be sent to recipients' landlines, cell phones, PDAs/text- based devices, SMS, e-mail accounts, and TTY/TDD devices for the hearing impaired. "Time-sensitive mass notification systems are a top priority for global academic institutions," said Michael Chasen, Blackboard's President and Chief Executive Officer. "NTI is the leading provider of these systems to educational institutions and government agencies and the addition of their solutions is an excellent next step in the growth of Blackboard's product portfolio. NTI expands our client base significantly and in particular adds more than 1,200 new relationships with key IT decision makers in the K-12 market. I believe the union of our companies will create substantial cross- selling opportunities and add significant shareholder value." "We are extremely pleased to become a part of Blackboard and enhance their product offering with our mission critical communications technology," said Robin Richards, NTI Chairman and Chief Executive Officer. "We believe that we can leverage Blackboard's existing infrastructure, geographic diversity and relationships in higher education to efficiently expand the reach of our communications platform." Both companies' Boards of Directors have approved the transaction. Subject to regulatory approval and other customary closing conditions, the transaction is expected to close in the first quarter of 2008. The combined companies will operate under the Blackboard name and brand with corporate headquarters located in Washington, DC. Acquisition Benefits The combination of Blackboard and NTI unites two innovators serving academic institutions, as well as government and corporate clients. Key strengths expected from the combination include: -- Combined client base of more than 4,900 K-12 schools, colleges and universities as well as a growing presence in government organizations and corporations; -- Unmatched depth and breadth of product offering; -- Enhanced cross-selling opportunities to both the existing NTI and Blackboard client bases; -- Strengthened management with extensive experience in global education technology; and -- Increased revenue growth, profitability and cash flow over time. Financial Details of the Acquisition NTI's business model offers many of the same financial characteristics as Blackboard's, including an annual recurring subscription-based licensing model, ratable revenue recognition, a stable institutional client base and historically high renewal rates. As a result, the combination is expected to enhance growth and profitability over time. Blackboard expects the transaction to be slightly accretive to earnings on a non-GAAP adjusted basis excluding the impact of purchase accounting adjustments on deferred revenues and non-recurrinfedders corpg merger-related costs and dilutive on a GAAP basis for fiscal year 2008. Blackboard retained Wachovia Securities as its financial advisor and Dewey & LeBoeuf as its legal advisor. NTI retained UBS Investment Bank as its financial advisor and Latham and Watkins LLP as its legal advisor. About Blackboard Inc. Headquartered in Washington, D.C., Blackboard Inc. (Nasdaq: BBBB) provides enterprise software applications and related services to the education industry. Founded in 1997, Blackboard enables educational innovations everywhere by connecting people and technology. With two product suites, the Blackboard Academic Suite(TM) and the Blackboard Commerce Suite(TM), Blackboard is used by millions of people at academic institutions around the globe, including colleges, universities, K-12 schools and other education providers, as well as textbook publishers and student- focused merchants that serve education providers and their students. Blackboard has offices in North America, Europe and Asia. BLACKBOARD INC: S&P Ratings Unaffected by NTI Group Acquisition --------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings and outlook on Blackboard Inc. (B+/Positive/--) would not be affected by the company's announced acquisition of The NTI Group Inc., a provider of mass notification systems to schools, for $182 million, of which $132 million will be in cash and the remaining amount will be in common stock. The agreement also includes earnout of up to $17 million in common stock based upon the achievement of certain performance milestones. In 2007, NTI had revenue of approximately $30 million. At worst case, Washington, District of Columbia-based Blackboard's acquisition of NTI would leave operating lease-adjusted debt leverage unchanged at 3.3x as of Sept. 30, 2007, which is good for the rating. However, Standard & Poor's expects the transaction to be EBITDA accretive and leverage to improve slightly from its current level. Following this transaction, Blackboard still has some capacity for debt-financed acquisitions at the current rating. CALPINE CORP: New Common Stock Begins Trading Today --------------------------------------------------- Common stock to be issued by Calpine Corp. pursuant to its Sixth Amended Joint Plan of Reorganization will begin "when issued" trading on the New York Stock Exchange on Jan. 16, 2008. The company will disclose when the new shares of common stock will be distributed and "regular way" trading will begin on the NYSE at a later date. Calpine remains on track with its current timetable and expects to emerge from Chapter 11 prior to Feb. 7, 2008. Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. (Calpine Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CENTRO NP: S&P Says CCC+ Issuer Ratings Remain on Developing Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its 'CCC+' issuer credit ratings on Centro NP LLC remain on CreditWatch with developing implications, where they were placed on Jan. 3, 2008. The 'CCC+' senior-unsecured debt and 'CCC-' preferred stock ratings on Centro NP also remain on CreditWatch with developing implications. This CreditWatch update follows a series of announcements made earlier by Centro Properties Group on the company's refinancing plans for its maturing bank debt and progress made on the group's "strategic review". Collectively, the announcements do not have an immediate effect on the Centro NP ratings. The announcements were: -- CNP's U.S. private-placement noteholders, owed $450 million, agreed with CNP not to act on rights under their note purchase agreement which could potentially accelerate repayment of this debt before Feb. 15, 2008. This is consistent with the deadline for the rollover of substantial debt facilities at CNP. -- As a consequence of the inability to rollover CNP's interest-rate and foreign-exchange hedging, the company advised that its net foreign-currency equity exposure to movements in the Australian and U.S. dollars is currently $4,473 million, of which 80.7% is hedged, from 99.2% previously. -- CNP is reviewing the classification of current and non- current interest-bearing liabilities reported in CNP's audited financial statements to June 30, 2007. -- The sale process"of a whole-of-group review, which may include a recapitalization, equity issuance, or acquisition of CNP, and/or the sale of the group's interest in its Australian and U.S. wholesale funds"is continuing. -- The appointment of Glenn Rufrano as chief executive officer of CNP. Mr. Rufrano succeeds Andrew Scott, who resigned yesterday. "These announcements do not change the near-term probability that Centro NP could be put into default by its creditors, notwithstanding that the company's operating assets remain of good quality," Standard & Poor's credit analyst Craig Parker said. Given the uncertainty facing the group, the issuer rating on Centro NP could move either up or down from 'CCC+'. A downgrade would be precipitated by Centro NP not being able to seek an extension of its debt facility beyond Feb. 15, 2008. There is also a prospect that some lenders within the CNP group may selectively rollover facilities that have recourse to favorable assets, while other lenders may seek repayment on Feb. 15, 2008. On the other hand, the ratings could be raised if CNP and Centro NP are able to present a strategic plan that satisfies the bank lenders and facilitates an extension of the debt facilities. This may provide CNP and Centro NP with adequate time to reduce debt levels while enabling the assets to be managed and retain their market value. CENTRO PROPERTIES: Has Until Feb. 15 to Cure U.S. Notes Default --------------------------------------------------------------- Centro Properties Group has received advice from its U.S. Private Placement Noteholders who are collectively owed $450 million, which suggested that one or more events of default under the relevant Note Purchase Agreements may have arisen under some or all of the Notes. Centro has not conceded that there are any such defaults. However, Centro has entered into an agreement with the Noteholders through to Feb. 15, 2008 (or such later date as may be agreed) for the Noteholders not to act on the events, consistent with its arrangements with the lenders who are parties to the extension agreements. Both the Australian and U.S. lenders have concurred with the arrangements. Centro said it is in regular dialogue with the lenders who are parties to the Australian Extension Deed dated Dec. 17, 2007, and is expected to continue. According to Centro, the lenders are currently considering extending the arrangements under the Extension Deed beyond Feb. 15, 2008. The U.S. lenders are also considering an extension of their current maturities beyond Feb. 15, 2008, Centro notes. Foreign Exchange Hedging In relation to interest rate hedging, Centro has traditionally maintained a high level of foreign exchange hedging on its net foreign currency exposures to protect its stakeholders from earnings and cash flow volatility resulting from fluctuations in FX rates. Due to the current situation, Centro said it has been unable to extend maturing FX hedges with its relationship banks. Consequently, Centro's exposure to FX rate movements has increased and could translate into volatility in earnings if the Australian Dollar appreciates or depreciates significantly from current levels. Centro's net foreign currency equity exposure to A$/US$ rate movements is currently US$4,473 million of which 80.7% is hedged, from 99.2% previously. The current level of hedges is below internal policy requirements. Centro's ongoing hedging levels are being considered as part of the Strategic Review. The change in FX hedging position does not require action under the arrangements with Centro's financiers. Centro has advised its relationship banks of the issues involved and will be seeking to develop a solution with them. The FX hedging positions of Centro's managed funds, including Centro Retail Trust, are not affected. Current and Non Current Debt Centro Properties Group's audited financial statements (released on Sept. 18, 2007) reflected A$1,097 million in current interest bearing liabilities and A$2,507 million in non-current interest bearing liabilities. Centro has initiated a review of its classification of current versus non current liabilities in its audited June 30 2007 accounts, as it now considers there is a prospect that the proportion of current liabilities may have been higher than that reported. The total amount of reported debt of $3,604 million is unaffected. Centro's debt maturity profile as at December 2007 is as stated in a schedule to its announcement on Dec. 17, 2007. This schedule, which included Centro's debt and relevant debt included in its US joint venture, maturing in the 12 months from December 2007, remains unchanged. Strategic Review Update Centro's adviser, Lazard Carnegie Wylie, has reported extensive interest from high quality and credible potential investors (both Australian and international) for a range of the various options being considered by the Board as part of the Strategic Review. It is expected that a number of these parties will commence due diligence with access to the company's data room shortly. The potential sale of the Group's interests in the Centro Australia Wholesale Fund has also attracted strong interest from both domestic and international investors. A detailed Information Memorandum regarding CAWF is being sent to interested parties. Significant interest has also been received for the Centro America Fund and, therefore, a similar process is being initiated. Trading Halt Centro Retail Trust went into trading halt on Friday, Jan. 11, 2008, as a result of the trading halt for Centro Properties Group and its potential consequential impact on CER. In parallel with the review being conducted by Centro Properties Group, CER has initiated a review of its classification of current versus non current liabilities in its audited June 30 2007 accounts. CER Debt Maturity Profile* (A$bn) Debt Maturity As at December 2007 As at January 2008 ------------- ------------------- ------------------ Feb. 15, 2008 1.2 1.2 12 Months or less 0.7 1.3 Beyond 12 Months 3.7 3.1 ---------------------------------------------------------------- Total 5.6 5.6 * includes share of debt held in equity accounted investments The increase in debt maturing in 12 months or less from $0.7 billion to $1.3 billion reflects the current position including debt maturing in December 2008. About Centro Properties Centro Properties Group is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management in excess of $26.6 billion. CENTRO PROPERTIES: Andrew Scott Resigns as Chief Executive Officer ------------------------------------------------------------------ Andrew Scott has resigned as Chief Executive Officer and as a director of Centro Properties Group. Glenn Rufrano has been appointed as Chief Executive Officer effective immediately. Since the acquisition of New Plan by Centro, Mr. Rufrano has been Chief Executive Officer of Centro US. Mr. Rufrano was formerly the Chief Executive Officer of New Plan, prior to its acquisition by Centro in April 2007. Mr. Brian Healey, Chairman of Centro said, "Glenn is well known and respected in the industry and has been a great addition to Centro since joining us through the New Plan acquisition. The Board is extremely pleased that Glenn has agreed to accept the position of Chief Executive Officer and we look forward to the benefit of his leadership and vast experience in these challenging times". Centro has agreed with Mr. Rufrano that he will be entitled to a salary of US$1.2 million per annum, a potential short term incentive of up to 150% of his annual salary and a long term incentive of 1,000,000 options to acquire securities under the Centro Executive Option Plan. Mr. Scott has agreed to remain available to actively assist Centro as a consultant until March 31 2008. Mr. Scott has agreed to a payment of $1.5 million on the date of cessation of employment (plus accrued salary or other like entitlements to that date). He will also become entitled to a further $1.5 million on March 31 2008, provided that he has satisfactorily fulfilled his consulting obligations. The value of Mr. Scott's termination benefits is significantly less than the termination benefit to which he would have been entitled under the contract as described in Centro's annual report for 2007. About Mr. Glenn J. Rufrano Glenn J. Rufrano has been Chief Executive Officer of Centro Properties U.S. since the acquisition of New Plan in April 2007. In this role, he has been responsible for the management, leasing, redevelopment and development of Centro Properties Group's US portfolio. Until its acquisition by Centro Properties Group in April 2007, Mr. Rufrano served as Chief Executive Officer of New Plan Excel Realty Trust Inc., as well as a member of the Company's Board of Directors. Under his leadership, New Plan was transformed into one of the nation's largest public real estate companies, focusing on the ownership and management of over 460 community and neighbourhood shopping centres encompassing approximately 68 million square feet of retail space. Mr. Rufrano has been involved in both the shopping centre and mall industries for more than 25 years. Mr. Rufrano joined New Plan Excel Realty Trust in February 2000, following seventeen years as a partner at The O'Connor Group, a diversified real estate investment firm. At The O'Connor Group, he most recently served as President and Chief Operating Officer, overseeing the investment and management of three private equity funds, in addition to client service/marketing and finance activities. Concurrently, he was Co-Chairman of The Peabody Group, an association between The O'Connor Group and J.P. Morgan & Co. Inc. investing in high- yield international real estate related opportunities. Mr. Rufrano currently serves on a number of boards at New York University's Real Estate Institute, where he is an adjunct professor, and is a trustee, member of the Executive Committee and Treasurer and Secretary of the International Council of Shopping Center. He is also on the Board of Directors of New Alternatives for Children, a not-for-profit health and social services agency whose exclusive mission is to serve children with medical disabilities and/or chronic illnesses and their families. Mr. Rufrano holds a Master of Science in Management degree from the Florida International University and a Bachelor of Arts in Business Administration from Rutgers University. About Centro Properties Centro Properties Group is a retail investment organisation specialising in the ownership, management and development of retail shopping centres. Centro manages both listed and unlisted retail property and has an extensive portfolio of shopping centres across Australia, New Zealand and the United States. Centro has funds under management in excess of $26.6 billion. CHEVY CHASE: Moody's Reviews Ratings and May Downgrade ------------------------------------------------------ Moody's Investors Service placed on review for possible downgrade, the ratings of ten tranches from two transactions issued by Chevy Chase Funding LLC in 2007. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans. The ratings were placed on review, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non-delinquent portion of the transactions. Complete rating actions are: Chevy Chase Funding LLC, Mortgage-Backed Certificates, Series 2007-1 -- Cl. B-3 Currently A2, on review for possible downgrade, -- Cl. B-3I Currently A2, on review for possible downgrade, -- Cl. B-3NA Currently A2, on review for possible downgrade, -- Cl. B-4 Currently Baa3, on review for possible downgrade, -- Cl. B-5 Currently B2, on review for possible downgrade, Chevy Chase Funding LLC, Mortgage-Backed Certificates, Series 2007-2 -- Cl. B-3 Currently A1, on review for possible downgrade, -- Cl. B-3I Currently A1, on review for possible downgrade, -- Cl. B-3NA Currently A1, on review for possible downgrade, -- Cl. B-4 Currently Baa3, on review for possible downgrade, -- Cl. B-5 Currently B2, on review for possible downgrade. CHUCK LAVERTY: Case Summary & 35 Largest Unsecured Creditors ------------------------------------------------------------ Lead Debtor: Chuck Laverty & Son Plumbing & Heating 50 Howe Avenue Millbury, MA 01527 Bankruptcy Case No.: 08-40101 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Chuck Laverty & Son Contracting, Inc. 08-40102 Type of Business: The Debtors are engaged in the plumbing, heating and air-conditioning businesses. Chapter 11 Petition Date: January 14, 2008 Court: District of Massachusetts (Worcester) Judge: Henry J. Boroff Debtors' Counsel: John A. Burdick, Jr., Esq. 679 Pleasant Street Paxton, MA 01612 Tel: (508) 752-4633 Fax: (508) 754-1071 Total Assets Total Debts ------------ ----------- Chuck Laverty & Son Plumbing & $1,862,908 $1,577,246 Heating Chuck Laverty & Son Contracting, $56,895 $639,807 Inc. A. Chuck Laverty & Son Plumbing & Heating's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Idearc Media Corp./ trade debt $566,789 Verizon Direct P.O. Box 610830 Dfw Airport, TX 75261-0830 F.W. Webb trade debt $224,316 160 Middlesex Tpke Bedford, MA 01730-1416 P.C. Plus/Lachance Financial trade debt $173,413 Attention: Seder & Chandler 339 Main Street Worcester, MA 01608-1521 Distributor Corp. of N.E. trade debt $81,322 Conquest Mechanical trade debt $35,007 Penn-America Insurance trade debt $32,038 Banc of America Leasing trade debt $22,659 Access Rec. Management/ trade debt $19,374 Pref. Mutual Insurance Community Phonebook trade debt $14,298 M.&T. Services value of collateral: $48,120 $26,210 Chase Auto Finance value of collateral: $20,561 $10,240 St. Mary's Credit Union value of collateral: $16,822 $7,865 The Hartford trade debt $8,706 St. Mary's Credit Union value of collateral: $18,158 $10,240 Eastern Bank value of collateral: $19,079 $11,220 Toyota Financial value of collateral: $88,585 $58,410 B. Chuck Laverty & Son Contracting, Inc's 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lennox Industries trade debt $208,462 P.O. Box 910549 Dallas, TX 75391-0549 P.C. Plus/Lachance trade debt; value of $173,413 Attention: Seder & Chandler collateral: $37,062 339 Main Street Worcester, MA 01608-1521 Air Purchasers trade debt $105,616 P.O. Box 845479 Boston, MA 02284-5479 S.G. Torrice trade debt $54,501 Hilti & Hilti Fleet trade debt $23,637 Community Phonebook trade debt $14,298 P.V. Sullivan trade debt $9,121 WinWholesale trade debt $8,879 Property Alternatives, Inc. trade debt $7,495 Community Phonebook trade debt $5,718 AmQuip/Shaugnessy trade debt $4,210 Koopman Lumber trade debt $4,022 Dell trade debt $4,852 Carousel Industries trade debt $3,319 Interpark trade debt $3,035 W.B. Mason trade debt $2,155 Northeast Air Solutions trade debt $1,850 Ti-Sales trade debt $1,824 Staples Credit Plan trade debt $1,503 CONCORD RE: Loan Maturity Prompts Moody's Ba2 Rating Withdrawal --------------------------------------------------------------- Moody's has withdrawn the Ba2 senior secured term loan and Baa2 insurance financial strength ratings of Concord Re Limited due to maturity of the loans and termination of the reinsurance arrangement. The loans matured and the reinsurance arrangement was terminated on Dec. 31, 2007 largely as scheduled, following 18 months of relatively benign weather and moderate property insurance losses. Assets in the collateral trust have been released to lenders and equity investors. The lenders did not suffer any loss of interest or principal during the life of the transaction. Concord Re is a limited-life, Class 3 Bermuda reinsurance company that is commonly referred to as a "sidecar". In August 2006, it was capitalized with $365 million of senior secured term loans and $365 million of common equity and subsequently entered into a collateralized quota share reinsurance treaty with Lexington Insurance Company, a subsidiary of American International Group, Inc, to reinsure certain property insurance risks underwritten by Lexington. CYBERHOME ENT: Parties Have Until January 24 to Bid for Brand ------------------------------------------------------------- John T. Kendall, Chapter 7 Trustee of the CyberHome Entertainment Inc., has set 5:00 p.m., Pacific Standard Time on Jan. 24, 2008, as the deadline for parties to submit offers for the CyberHome brand package. With Court approval, the Trustee has retained Cerian Technology Ventures LLC, an intellectual property advisory firm, to assist in the sale of the brand. The "CyberHome" brand was once the largest consumer electronics brand in its category by volume sales, CyberHome enjoyed global annual sales of over a hundred million DVD players, LCD televisions, personal media players and home theater systems. The brand is known for dependable and affordable consumer electronics devices in the US, Canada, Europe, South America, Asia and the Middle East. Additionally, the CyberHome brand enjoys strong protection under trademarks filed in fifty seven countries, and is accompanied by the venerable cyberhome.com domain name. "We are excited about the CyberHome brand, as it will allow its new owner immediate recognition among many millions of consumers around the globe," Brian Sagi, chief executive officer of Cerian Technology Venture LLC, said. "CyberHome Entertainment took its brand equity very seriously and has invested heavily in advertising and promoting the CyberHome brand, well as in protecting it. "The result is a brand that is well recognized for dependable and affordable consumer electronics in many countries worldwide, including the United States, Canada, Mexico, Germany, the United Kingdom, France, Italy, Austria, Belgium, Switzerland, Poland, the Czech Republic, Romania, Lithuania, Brazil, Argentina, Australia, Japan and India," Mr. Sagi continued. "This is an excellent opportunity for a company looking to own a brand that will allow for immediate recognition and access to consumers." Sealed Bids must be submitted in writing to: Cerian Technology Ventures LLC Attn: Brian Sagi Suite 245, 5405 Morehouse Drive San Diego, CA 92121 Fax (858) 201-6097 E-mail cyberhome@cerian.com and Aron M. Oliner Duane Morris LLP One Market Plaza Suite 2000, Spear Street Tower San Francisco, CA 94105-1104 Fax (415) 957-3001 About CyberHome Entertainment Inc. Headquartered in Fremont, California, CyberHome Entertainment Inc. is a high volume vendor of consumer electronics, equipment and related products. On Sept. 5, 2006, the Debtor filed a voluntary relief under Chapter 7 of the Bankruptcy Code in the Northern District of California. DELPHI CORP: Commences Exit Financing Syndication ------------------------------------------------- The syndication of Delphi Corp.'s exit financing package to support the company's planned first quarter of 2007 emergence from Chapter 11 reorganization was set to commence as early as last week with potential lenders' meetings in New York on Jan. 9, and in London on Jan. 10, the company stated in a press release. The proposed exit facilities, which are being arranged on a best efforts basis by J.P. Morgan Securities, Inc., and Citigroup Global Markets, Inc., were approved by the Court on Nov. 16, 2007. Delphi Corp. Controller and Chief Accounting Officer Thomas S. Timko reported, in a regulatory filing with the U.S. Securities and Exchange Commission, that Delphi will provide supplemental financial information at the scheduled meetings containing an unaudited borrowing base calculation for debtor entities as of Sept. 30, 2007, and EBITDAR information covering the periods from Oct. 1, 2006, through Sept. 30, 2007, each as measured by the covenants contained in Delphi's refinanced DIP Facility and selected debt levels. An exhibit containing the borrowing base calculation, EBITDAR information, selected debt levels and a reconciliation to the nearest comparable U.S. GAAP measurements, where applicable, that Delphi intends to provide to potential lenders is available for free at the SEC's Web site at: http://ResearchArchives.com/t/s?2707 The borrowing base calculation and selected debt levels presented should not be considered in isolation or as a substitute for items on Delphi's consolidated balance sheet presented in accordance with generally accepted accounting principles in the U.S., Mr. Timko cautioned. In addition, the EBITDAR information should not be considered as an alternative to operating income, as a substitute for items in Delphi's consolidated statement of operations, or as an indicator of Delphi's operating performance. All the information, he said, should be viewed in conjunction with Delphi's financial statements, footnot