T R O U B L E D C O M P A N Y R E P O R T E R Thursday, January 17, 2008, Vol. 12, No. 14 Headlines 20/20 FASHIONS: Voluntary Chapter 11 Case Summary AARDVARK ABS: Moody's Junks Rating on $47 Million Senior Notes ABN AMRO: Fitch Affirms 'BB' Rating on Class B-4 Certificates AFC Automobile: Voluntary Chapter 11 Case Summary AEP INDUSTRIES: Earnings Drop to $30 Mil. in Year Ended Oct. 31 AMBAC FIN'L: To Raise $1 Bil. Capital; Cuts Common Stock Dividend AMBAC FIN'L: Appoints Michael Callen as Chairman and Interim CEO AMBAC FINANCIAL: Moody's Reviews Rating and May Downgrade ANALYTICAL SURVEYS: Malone & Bailey Raises Going Concern Doubt ATHERTON-NEWPORT: Case Summary & 20 Largest Unsecured Creditors ATLAS MARKETING: File Voluntary Chapter 11 Case Summary BEAR STEARNS: Eight Tranches Acquire Moody's Low-B Ratings BEAR STEARNS: Poor Performance Cues S&P's Six Rating Downgrades BECKERMAN KITCHENS: Gets $3.1 Mil. Buy Offer from Ludvik Capital BOSQUE POWER: Moody's Rates $412.5 Million Credit Facility at B1 CABLEVISION CORP: S&P Maintains 'BB' Corporate Credit Rating CHARMING SHOPPES: Investor Group Moves for Three New Directors CITIGROUP MORTGAGE: Fitch Retains Junk Ratings on Four Classes CREDIT SUISSE: Fitch Cuts Rating to CC from CCC on $9.9MM Certs. CREDIT SUISSE: Moody's Cuts 27 Tranches' Ratings on Delinquency DELPHI CORP: Obtains "Broad-Based" Support on Plan DELTA AIR: S&P Says Merger Talks Has No Effect on Ratings DENVER RADIO: Wants to Hire Media Venture as Financial Advisor DENVER RADIO: Wants to Employ Kagan Media as Appraiser DIEGO INC: To Cut Workforce by 50%, WSJ Says DIOGENES CDO: Moody's Junks Rating on Eight Notes Classes DUNMORE HOMES: Court Orders Transfer of Venue to California DUNMORE HOMES: Morrison & Foerster Okayed as Committee's Counsel DUNMORE HOMES: Panel Taps Mesirow Financial as Financial Advisors DURA AUTOMOTIVE: Gets Lenders Consent to Amend DIP Financing Terms DURA AUTOMOTIVE: Seeks Approval of 2008 Management Incentive Plan EAGLE MEADOWS: Section 341(a) Meeting Scheduled for January 29 FALCON RIDGE: Moore & Associates Raises Going Concern Doubt FEDERAL MOGUL: Board Appoints C. Icahn as Non-Executive Chairman FIRST MAGNUS: Countrywide Wants Examination on Chapter 11 Plan FIRST MAGNUS: Seeks Approval of Piaggio Settlement Proposal FIRST MAGNUS: Snell & Wilmer Wants WNS' Disqualify Motion Trashed FIRST REPUBLIC: Fitch Holds 'BB+' Ratings on Two Loan Classes GE CAPITAL: Fitch Holds 'B' Rating on $12.5MM Class L Certs. GE CAPITAL: Fitch Junks Rating on $5.3 Million Class I Certs. GOODMAN GLOBAL: Stockholders OKs Acquisition by Hellman & Friedman GOODMAN GLOBAL: Unit Launches Tender Offer for $579MM Senior Notes GOODMAN GLOBAL: S&P Assigns B+ Corp. Rating with Stable Outlook GOODMAN GLOBAL: S&P Places Unit's B+ Rating on Negative Watch HARRAH'S ENT: High Leverage Cues S&P's B2 Corporate Rating INDEPENDENCE COUNTY: S&P Places BB+ Rating on $29.3 Mil. Bonds INTERSTATE BAKERIES: No Alternative Funding Proposals Received KELLWOOD CO: Urges Shareholders to Defer Action on Tender Offer KENNETH KUNES: Voluntary Chapter 11 Case Summary LENOX GROUP: Explores Strategic Options, Board OKs Rights Plan MAAX HOLDINGS: Reports $76.6 Mil. Loss in 3rd Qtr. Ended Nov. 30 MARCAL PAPER: Lambasts Creditors' Panel for Trying to Delay Sale MARCOTTE PROPERTIES: Files Voluntary Chapter 11 Case Summary MASHANTUCKET WESTERN: S&P Ratings Not Affected by 17% Decline MASTR ADJUSTABLE: Moody's Downgrades Ratings on Nine Tranches MICHAEL HOLOKA: Case Summary & 11 Largest Unsecured Creditors MONEYGRAM INTERNATIONAL: In Negotiations for Recapitalization MONEYGRAM INT'L: Gets January 31 Waiver from Lenders MONEYGRAM INT'L: Incurs Additional Net Unrealized Losses of $571MM MONEYGRAM INT'L: Losses Spur S&P to Cut Rating to BB from BBB MONEYGRAM INT'L: Weak Portfolio Cues Moody's to Cut Corp. Rating MONEYGRAM INTERNATIONAL: Fitch Lowers Issuer Default Rating to BB- MORGAN STANLEY: Nine Tranches Obtains Moody's Junk Ratings MORGAN STANLEY: S&P Puts BB- Note Rating on Developing Watch MORTGAGE CAPITAL: Fitch Revises DRR on 'CCC' Rated Cert. to DR3 MORTGAGE LENDERS: Four Lenders Want Automatic Stay Terminated MORTGAGE LENDERS: Sovereign Bank Wants Automatic Stay Lifted MORTGAGE LENDERS: Says Arizona Property Not a Bankruptcy Estate MORTGAGEIT SECURITIES: Moody's Lowers Ratings on Six Tranches MOVIE GALLERY: Court Okays Procedures to Determine Cure Amounts MOVIE GALLERY: Wants CIO Seth Levy's Employment Terms Approved NITROMED INC: Plans to Reduce Work Force from 90 to 20 Positions OCWEN FINANCIAL: Proposed Buy-Out Cues Moody's Rating Reviews OCWEN FINANCIAL: S&P Ratings Unmoved by Going Private Plan OMI MEDICAL: Files for Chapter 11 Protection in Florida PACIFIC LUMBER: BoNY Asks Court to Appoint Chapter 11 Trustee PACIFIC LUMBER: Court Okays Terms of Log Purchase Pact with MAXXAM PACIFIC LUMBER: Wants to Sell Scotia School & Recreation Center PAETEC HOLDING: Moody's Maintains B2 Corporate Family Rating PHH MORTGAGE: Fitch Rates Series 2006-2 Class B-5 Certs. at B PIONEER NATURAL: Prices $440MM Offering of Conv. Senior Notes PIONEER NATURAL: S&P Puts BB+ Rating on Proposed $400MM Notes PNM RESOURCES: Moody's Puts Ratings Under Review & May Downgrade REGENCY ENERGY: Moody's Keeps Ba3 Rating After $655MM CDM Deal RIVER ROCK: Wants to Hire Shuford Hunter as General Bankr. Counsel RIVER ROCK: Section 341(a) Meeting Scheduled for January 30 QUEBECOR WORLD: Accepts CDN$400 Mil. Rescue Financing Proposal SCAN INTERNATIONAL: Taps Whiteford Taylor as Bankruptcy Counsel SCAN INTERNATIONAL: U.S. Trustee Appoints 4-Member Creditors Panel SCAN INTERNATIONAL: Section 341(a) Meeting Scheduled for Jan. 30 SEA CONTAINERS: Court Extends Plan-Filing Period to February 20 SEA CONTAINERS: Sopris Capital Reports Ownership of SCL Shares SHAW GROUP: Increases Credit Facility to $1 Bil. from $850 Mil. SOLUTIA INC: Reaches Settlement with Senior Secured Noteholders SPECIALTY UNDERWRITING: S&P Affirms Ratings on All Cert. Classes STRATUS SERVICES: Gruber & Company Raises Going Concern Doubt STRUCTURED ASSET: Moody's Downgrades Ratings on 18 Tranches TAHERA DIAMOND: Obtains Protection Under CCAA Until February 14 TANGER FACTORY: Closes $100 Mil. Unsecured Credit Line Expansion TERADYNE INC: FTC Okays Early Termination on Merger Waiting Period UBS COMMERCIAL: Moody's Assigns Definitive Ratings to Securities UBS MORTGAGE: Fitch Affirms Low-B Ratings on Five Loan Classes VALMONT INDUSTRIES: S&P Upgrades Corp. Rating to BB+ from BB WACHOVIA AUTO: Fitch to Put 'BB-' Rating on $14.97 Mil. Trust WACHOVIA AUTO: S&P Puts Preliminary BB Ratings on Two Sub Notes WACHOVIA BANK: Stable Performance Cues Fitch to Affirm Ratings YOUNG BROADCASTING: Selling Largest TV Station; Hires Moelis & Co. YOUNG BROADCASTING: Sept. 30 Balance Sheet Upside-Down by $216MM * S&P Puts Ratings on 162 Tranches Under Negative CreditWatch * Standard and Poor's Cuts Ratings on 13 Synthetic CDO Tranches * Debtwire Unveils 2008 Distressed Debt Outlook for North America * Delaware Bankruptcy Court is Preferred "Emergency Room" * Mortgage Values in Colorado Would Have Cost More, Bankers Say * Rockford Area's Bankruptcy Filings Up by 20% in 2007 * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* 20/20 FASHIONS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: 20/20 Fashions, Inc. dba Fashions For Her 1150 El Camino Real, #224 San Bruno, CA 94066 Bankruptcy Case No.: 08-30054 Type of Business: The Debtor sells clothes for women. Chapter 11 Petition Date: January 14, 2008 Court: Northern District of California (San Francisco) Judge: Dennis Montali Debtors' Counsel: Iain A. Macdonald, Esq. Macdonald and Associates 221 Sansome Street San Francisco, CA 94104 Tel: (415) 362-0449 http://www.macdonaldlawsf.com/ Estimated Assets: Less than $10,000 Estimated Debts: $100,000 to $1 million The Debtor did not file a list of 20 largest unsecured creditors. AARDVARK ABS: Moody's Junks Rating on $47 Million Senior Notes -------------------------------------------------------------- Moody's Investors Service downgraded ratings of three classes of notes issued by AArdvark ABS CDO 2007-1, and left on review for possible further downgrade the rating of one of these classes. Moody's also announced that the rating of another class of Notes issued by Aardvark ABS CDO 2007-1 is no longer on review for possible downgrade. The notes affected by this rating action are: Class Description: $1,320,000,000 Class A1 Senior Secured Floating Rate Notes Due October 2008 -- Prior Rating: P-1, on review for possible downgrade -- Current Rating: P-1 Class Description: $78,000,000 Class A2 Senior Secured Floating Rate Notes Due July 2047 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $47,000,000 Class B Senior Secured Floating Rate Notes Due July 2047 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Class Description: $23,500,000 Class C Senior Secured Floating Rate Notes Due July 2047 -- Prior Rating: Caa3 -- Current Rating: Ca The rating downgrade actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on Dec. 27, 2007, as reported by the Trustee, of an event of default caused by the occurrence of a Senior Overcollateralization Default as described in Section 5.1(i) of the Indenture dated March 1, 2007. AArdvark ABS CDO 2007-1 is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities. Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, a Senior Overcollateralization Default occurred. 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 A2 Notes remain on review for possible further action. ABN AMRO: Fitch Affirms 'BB' Rating on Class B-4 Certificates ------------------------------------------------------------- Fitch Ratings affirms ABN AMRO 2002-10 mortgage pass-through certificates as: -- Class A at 'AAA'; -- Class M at 'AAA'; -- Class B-1 at 'AA'; -- Class B-2 at 'A'; -- Class B-3 at 'BBB'; -- Class B-4 at 'BB'. The affirmations reflect a stable relationship between credit enhancement and expected losses, and affect approximately $141.9 million in outstanding certificates. The pool factor is approximately 20%, and the transaction is 60 months seasoned. The amount of loans in the 60+ buckets is approximately 0.69% of the current collateral balance, and cumulative losses are approximately 0.02%. AFC Automobile: Voluntary Chapter 11 Case Summary ------------------------------------------------- Lead Debtor: A.F.C. Automobile Receivables Funding II, L.L.C. 3237 Virginia Beach Blvd. Virginia Beach, VA 23452 Bankruptcy Case No.: 08-70140 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Auto Finance Co., L.L.C. 08-70139 Chapter 11 Petition Date: January 15, 2008 Court: Eastern District of Virginia (Norfolk) Debtors' Counsel: Michael Gregory Wilson, Esq. Hunton & Williams, L.L.P. 951 East Byrd Street Richmond, VA 23219 Tel: (804) 788-8200 Fax: (804) 788-8218 Estimated Assets Estimated Debts ---------------- --------------- A.F.C. Automobile $10 Million to $10 Million to Receivables Funding II, $50 Million $50 Million L.L.C. Auto Finance Co., L.L.C. $1 Million to $1 Million to $10 Million $10 Million The Debtors did not file lists of their 20 largest unsecured creditors. AEP INDUSTRIES: Earnings Drop to $30 Mil. in Year Ended Oct. 31 --------------------------------------------------------------- AEP Industries Inc. reported $30.05 million net income for fiscal year ended Oct. 31, 2007, compared to $62.93 million net income for fiscal 2006. "During 2007 we increased Adjusted EBITDA, a key metric used for measuring operating performance in our industry, by 11% to $87.4 million; returned $49 million to shareholders in repurchasing 1,129,100 shares of our common stock; increased sales volumes 5% in a very competitive marketplace; and effectively continued to control our operating expenses and resin cost spreads," Brendan Barba, chairman and chief executive officer of the company stated. "We are well capitalized and believe we can deal effectively with any adverse situation that may result from the financial markets," Mr. Barba continued. "Our focus will continue to be directed toward growth and improving the fundamentals of our business." Liquidity and Capital Resources The company ended fiscal 2007 with a net debt position or current bank borrowings plus long term debt less cash and cash equivalents of $194.9 million, compared with $192.6 million at the end of fiscal 2006. During fiscal 2007, in addition to its normal operating activities, the company: -- repurchased a total of 1,129,100 shares of its common stock for an aggregate purchase price of $49 million, utilizing cash on hand coupled with borrowings under its credit facility; -- completed the sale of its land and building located in Sydney, Australia for $7.8 million; -- had the U.S. company repay in November 2006 its intercompany loan to the UK operation in the amount of $2.4 million, which is currently being held in escrow awaiting transfer to the UK Pension Protection fund to fund the UK defined contribution plan; and -- incurred approximately $15.6 million of capital expenditures during fiscal 2007 related to a new 10-color print press installed in its Kentucky plant with production expected to commence in March 2008, a 50,000 square foot expansion of its Pennsylvania plant, two co- extruded film lines with a combined capacity of twenty million pounds, a new PVC line in its Georgia plant with production expected to commence in January 2008, and a new specialty line installed in its North Carolina plant with production expected to commence in February 2008. The company's working capital amounted to $86.2 million at Oct. 31, 2007, compared to $92.8 million at Oct. 31, 2006. The decrease in working capital of $6.6 million was due to: a) the sale of its land and building in Sydney, Australia with the proceeds from the sale used to pay down its long term borrowings; b) a decrease in the company's current deferred tax asset, resulting from the utilization of the US net operating loss carryforwards; and c) an increase in accounts payable due to timing of resin purchase payments, partially offset by an increase in accounts receivable, resulting from an increase in sales during the fourth quarter of fiscal 2007 as compared to the fourth quarter of fiscal 2006. At Oct. 31, 2007, the company has an aggregate of approximately $125.2 million available under its various credit facilities. At Oct. 31, 2007, the company's balance sheet showed total assets of $329.03 million, total liabilities of $286.66 million and total shareholders' equity $42.37 million. About AEP Industries Inc. Based in South Hackensack, New Jersey, AEP Industries Inc. (NASDAQ:AEPI) -- http://www.aepinc.com/-- manufactures plastic packaging films in North America and markets a line of polyethylene, polyvinyl chloride and polypropylene flexible packaging products, with consumer, industrial and agricultural applications used in a variety of industries, including the packaging, transportation, chemical, electronics, agricultural and textile industries. It operates in two geographical segments: North America and Europe. In February 2006, the company acquired Mercury Plastic Inc.'s Bowling Green, Kentucky facility. In May 2006, the company liquidated its remaining interest in AEP Industries (Australia) Pty Limited. * * * Moody's Investors Service placed AEP Industries Inc.'s long term corporate family rating at 'Ba3' on September 2006. The Rating still holds to date with a stable outlook. AMBAC FIN'L: To Raise $1 Bil. Capital; Cuts Common Stock Dividend ----------------------------------------------------------------- Ambac Financial Group Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that its Board of Directors has approved a plan to strengthen its capital base through the issuance of at least $1 billion of equity and equity-linked securities. The plan may also include additional capital from reinsurance or issuance of debt securities. Ambac also said that as part of its capital initiative, it will reduce the quarterly dividend on its common stock from $0.21 per share to $0.07 per share. With regards to the results of its fourth quarter fair value review of its outstanding credit derivative contracts, Ambac's estimate of the fair value or "mark-to-market" adjustment for its credit derivative portfolio for the quarter ended Dec. 31, 2007 amounted to an estimated loss of $5.4 billion, pre-tax, $3.5 billion, after tax. Of the estimated $5.4 billion pre-tax mark-to-market loss, approximately $1.1 billion represents estimated credit impairment related to certain collateralized debt obligations of asset-backed securities transactions. Ambac said it expects to report a loss provision amounting to approximately $143 million, pre-tax. The loss provision relates primarily to underperforming home equity line of credit and closed-end second lien RMBS securitizations. As a result of the losses, Ambac expects to report a net loss per share of up to $32.83 for the fourth quarter ended Dec. 31, 2007. Earnings measures reported by research analysts are on an operating basis and exclude the net income impact of mark-to- market gains and losses on credit derivative contracts internally rated investment grade, as well as certain other items. Ambac expects to report operating losses per share of up to $5.80 for the fourth quarter primarily as a result of the losses on CDOs and home equity line of credit transactions. In addition, book value per share is expected to be approximately $21.00 per share at Dec. 31, 2007. Ambac moved the reporting of its fourth quarter results to Tuesday, Jan. 22, 2008 at 6:00 a.m. (ET), from the originally scheduled date of Wednesday, Jan. 30, 2008. Just recently, Karen Richardson of The Wall Street Journal reports that investors gave a thumbs down to Ambac's $1 billion capital-raising plan after it warned of a big fourth-quarter loss. About Ambac Financial Headquartered in New York City, Ambac Financial Group Inc. (NYSE: ABK) -- http://www.ambac.com/-- through its subsidiaries, provides financial guarantee products and other financial services to clients in the public and private sectors worldwide. Ambac's principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance obligations. AMBAC FIN'L: Appoints Michael Callen as Chairman and Interim CEO ---------------------------------------------------------------- Ambac Financial Group Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that its Board of Directors has named Michael A. Callen as Chairman and Interim Chief Executive Officer. Mr. Callen has been Presiding Director and a member of the Audit; Compensation; and Governance committees of Ambac's Board of Directors. He succeeds Robert J. Genader, who will retired from the company effective Jan. 16, 2008. Mr. Callen will be receiving a base salary at an annualized rate of $650,000 per year. On Jan. 13, 2008, Mr. Genader informed Ambac of his intention to retire as its Chairman, President and CEO and Director, effective Jan. 16, 2008. Mr. Genader does not serve on any of the committees of the Board of Directors. Mr. Genader stated that his decision to retire was prompted, in part, by his disagreement with aspects of the Board's capital raising plan. Also on the same date, W. Grant Gregory, a member of the Board of Directors of Ambac, informed Ambac that he would be resigning from the Board of Directors effective immediately. He informed the company that in doing so, he wanted to concentrate on his professional responsibilities as the President of Cerberus Operations and Advisory Company LLC, an affiliate of Cerberus Capital Management L.P., and it was not in relation to any disagreement with the company. About Ambac Financial Headquartered in New York City, Ambac Financial Group Inc. (NYSE: ABK) -- http://www.ambac.com/-- through its subsidiaries, provides financial guarantee products and other financial services to clients in the public and private sectors worldwide. Ambac's principal operating subsidiary, Ambac Assurance Corporation, is a guarantor of public finance and structured finance obligations. AMBAC FINANCIAL: Moody's Reviews Rating and May Downgrade --------------------------------------------------------- Moody's Investors Service placed the Aaa insurance financial strength ratings of Ambac Assurance Corporation and Ambac Assurance UK Limited on review for possible downgrade. In the same rating action, Moody's also placed the ratings of the holding company, Ambac Financial Group, Inc. (senior debt at Aa2), and related financing trusts on review for possible downgrade. Moody's stated that this rating action follows Ambac's announcement of record losses, a capital raising plan, and the retirement of its CEO. As a result of this review, the Moody's-rated securities that are "wrapped" or guaranteed by Ambac are also placed under review for possible downgrade, except those with higher public underlying ratings. Ambac has announced that it expects to record a $5.4 billion pre- tax ($3.5 billion after-tax) mark-to-market loss on its credit derivative portfolio for the quarter ended Dec. 31, 2007. Of this amount approximately $1.1 billion represents expected credit- related impairment on certain ABS CDO transactions. This is a significant change in Ambac's view of the ultimate losses to be realized from these transactions. According to James Eck, a Moody's VP-Senior Analyst, "This loss significantly reduces the company's capital cushion and heightens concern about potential further volatility within Ambac's mortgage and mortgage-related CDO portfolios." Ambac also announced that it intends to augment its claims-paying resources through the issuance of at least $1 billion of equity and equity-linked securities, as well as explore the use of other sources of capital. The company will also decrease its common share dividend by 67%. Moody's also said that the departure of the chief executive, at a time of severe turbulence in the credit markets and in the financial guaranty industry, was a consideration in the decision to review the rating. Moody's review of Ambac's ratings will focus on risk in the company's insured portfolio and execution of its capital plan, as well as new management's ability to formulate and execute strategic and operational plans in the rapidly evolving market for financial guaranty insurance. Jack Dorer, Managing Director, added, "The market stresses contributing to Ambac's recent financial and organizational announcements are also evident at other financial guarantors, particularly those with significant mortgage and mortgage-related CDO exposures." Moody's will be evaluating, in the near term, the degree to which these issues -- including the extent of customer and investor support -- affect the ratings of other firms in the industry and communicate with the market as appropriate. These ratings have been placed on review for possible downgrade: -- Ambac Assurance Corporation: insurance financial strength at Aaa; -- Ambac Assurance UK Limited -- insurance financial strength at Aaa; -- Ambac Financial Group, Inc.: senior unsecured debt at Aa2, junior subordinated debt at Aa3 and provisional rating on preferred stock at (P)A1; -- Anchorage Finance Sub-Trusts I-IV: contingent capital securities at Aa2; and -- Dutch Harbor Finance Sub-Trusts I-IV: contingent capital securities at Aa2. The most recent rating action on Ambac occurred on Dec. 14, 2007, when Moody's affirmed Ambac's insurance financial strength and debt ratings with a stable outlook. Ambac Financial Group, Inc., headquartered in New York City, is a holding company whose affiliates provide financial guarantees and financial services to clients in both the public and private sectors around the world. For the nine months ended Sept. 30, 2007, Ambac reported net income of $26 million. As of Sept. 30, 2007, Ambac had shareholders' equity of approximately $5.65 billion. ANALYTICAL SURVEYS: Malone & Bailey Raises Going Concern Doubt -------------------------------------------------------------- Houston-based Malone & Bailey PC expressed substantial doubt about the ability of Analytical Surveys Inc. to continue as a going concern after it audited the company's financial statements for the year ended Sept. 30, 2007. The auditing firm reported that the company has suffered significant operating losses in 2007 and prior years and does not currently have external financing in place to fund working capital requirements The company posted a net loss of $4,534,000 on total revenues of $586,000 for the year ended Sept. 30, 2007, as compared with a net loss of $335,000 on total revenues of $4,320,000 in the prior year. At Sept. 30, 2007, the company's balance sheet showed $1,176,000 in total assets and $2,274,000 in total liabilities, and $1,098,000 stockholders' deficit. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?270a About Analytical Surveys Based in San Antonio, Tex., Analytical Surveys Inc. (Nasdaq: ANLT) -- http://www.asienergy.com/-- provides utility-industry data collection, creation, and management services for the geographic information systems markets. The company has recently transitioned its focus toward the development of oil and gas exploration and production opportunities. ASI's Energy Division is focused on high-quality exploratory and developmental drilling opportunities, as well as purchase of proven reserves with upside potential attributable to behind-pipe reserves, infill drilling, deeper reservoirs, and field extension opportunities. ATHERTON-NEWPORT: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Atherton-Newport Investments, L.L.C. 4 Park Plaza, Suite 1050 Irvine, CA 92694 Bankruptcy Case No.: 08-10230 Type of Business: The Debtor is a real estate investment and development company based in Irvine, California. Formed in 2001, it has expertise in the acquisition, rehabilitation, repositioning and management of multi-family investments, as well as the entitlement and development of infill residential sites. Its investments are focused on two major segments of the residential real estate market, namely apartment assets with value-added potential and land to be entitled for residential development. See http://www.atherton-newport.com Chapter 11 Petition Date: January 16, 2008 Court: Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Joseph A. Eisenberg, Esq. Jeffer, Mangels, Butler & Marmaro, L.L.P. 1900 Avenue of the Stars, 7th Floor Los Angeles, CA 90067 Tel: (310) 203-8080 Estimated Assets: $10 Million to $50 Million Estimated Debts: $10 Million to $50 Million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Greenover Managers $2,000,000 Attention: Kelly Williams 2030 Eastover Drive Jackson, MS 39211 Nikolai Khabibulin $1,250,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 A.L.& Shiela Ross $1,225,000 3535 East Coast Highway, Suite 362 Corona del Mar, CA 92625 The Ross Family Trust $1,210,000 3535 East Coast Highway, Suite 362 Corona del Mar, CA 92625 Harry & Brandy Halladay $1,100,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Vladimir Guerrero $1,100,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Buckweitz Investments $700,000 Attention: J. Buckweitz 9173 Pinnacle Court Naples, FL 34113 Robert & Candace Ryan $700,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Brian Leetch $600,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Kiritkumar Patel $580,000 30138 Villa Alturas Temecula, CA 92592 Tim Bryant $560,000 25391 Spotted Pony Lane Laguna Hills, CA 92653 Sergei Zubov $500,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Erubiel Durazo $500,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Ethan Thomas $500,000 Attention: M.T.X. Wealth 7475 Wisconsin Avenue, Suite 600 Bethesda, MD 20814 Antonio Cagnolo $480,000 2949 Cliff Drive Newport Beach, CA 92663 Henry Weingarten Trust $450,000 Attention: H. Weingarten 4611 Westchester Drive Woodland Hills, CA 91364 S.P.E.P. Investments $440,000 Attention: J. Klaff 1150 Summer Street Stamford, CT 06905 Steven Di Mercurio $425,000 1060 Crest Avenue Pacific Grove, CA 93950 Maly Trust $400,000 Attention: Life Wealth 27441 Tourney Road, Suite 240 Valencia, CA 91355 Christeen Brown Irrevocable $400,000 Trust Attention: Life Wealth 27441 Tourney Road, Suite 240 Valencia, CA 92355 ATLAS MARKETING: File Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Atlas Marketing Group, L.C. 6063 Olympiad Lane Harriman, UT 84043 Tel: (801) 592-5900 Bankruptcy Case No.: 08-20225 Type of Business: The Debtor manufactures communication and geostationary satellites. Chapter 11 Petition Date: January 15, 2008 Court: District of Utah (Salt Lake City) Debtors' Counsel: Ronald S. George, Esq. Ronald S. George P.A. 218 W. Paxton Avenue Salt Lake City, UT 84101 Tel: (208) 232-2515 Fax: (208) 232-9467 http://www.hostidaho.com/ Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of 20 largest unsecured creditors. BEAR STEARNS: Eight Tranches Acquire Moody's Low-B Ratings ---------------------------------------------------------- Moody's Investors Service downgraded the ratings of twenty four tranches and has placed under review for possible downgrade the ratings of seven tranches from five transactions issued by Bear Stearns Mortgage Funding Trust in 2007. Three downgraded tranches remain on review for possible downgrade. The collateral backing these classes primarily consists of first lien, adjustable-rate negatively amortizing Alt-A mortgage loans. The ratings were downgraded, 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: Bear Stearns Mortgage Funding Trust 2007-AR1 -- Cl. I-B-7, Downgraded to Baa1, previously A2, -- Cl. I-B-8, Downgraded to Baa2, previously Baa1, -- Cl. I-B-9, Downgraded to Baa3, previously Baa2, -- Cl. II-B-1 Currently Aa1, on review for possible downgrade, -- Cl. II-B-2 Currently Aa3, on review for possible downgrade, -- Cl. II-B-3, Downgraded to Baa2, previously A3, -- Cl. II-B-4, Downgraded to Ba1, previously Baa1, -- Cl. II-B-5, Downgraded to B3 on review for possible further downgrade, previously Ba2, Bear Stearns Mortgage Funding Trust 2007-AR2, Mortgage Pass- Through Certificates, Series 2007-AR2 -- Cl. B-1 Currently Aa1, on review for possible downgrade, -- Cl. B-2 Currently Aa3, on review for possible downgrade, -- Cl. B-3, Downgraded to Baa2, previously A3, -- Cl. B-4, Downgraded to Ba1, previously Baa1, -- Cl. B-5, Downgraded to B3 on review for possible further downgrade, previously Ba2, Bear Stearns Mortgage Funding Trust 2007-AR3 -- Cl. I-B-7, Downgraded to Baa1, previously A2, -- Cl. I-B-8, Downgraded to Baa2, previously Baa1, -- Cl. I-B-9, Downgraded to Baa3, previously Baa2, -- Cl. II-B-2 Currently Aa3, on review for possible downgrade, -- Cl. II-B-3, Downgraded to A3, previously A2, -- Cl. II-B-4, Downgraded to Baa1, previously A3, -- Cl. II-B-5, Downgraded to Baa3, previously Baa1, -- Cl. II-B-6, Downgraded to B1, previously Ba2, Bear Stearns Mortgage Funding Trust 2007-AR4 -- Cl. II-B-1 Currently Aa1, on review for possible downgrade, -- Cl. II-B-2 Currently Aa3, on review for possible downgrade, -- Cl. II-B-3, Downgraded to Baa1, previously A2, -- Cl. II-B-4, Downgraded to Baa2, previously A3, -- Cl. II-B-5, Downgraded to Ba1, previously Baa1, -- Cl. II-B-6, Downgraded to B3 on review for possible further downgrade, previously Ba2, Bear Stearns Mortgage Funding Trust 2007-AR5 -- Cl. I-B-9, Downgraded to Baa3, previously Baa2, -- Cl. II-B-4, Downgraded to Baa2, previously A2, -- Cl. II-B-5, Downgraded to Baa3, previously A3, -- Cl. II-B-6, Downgraded to Ba1, previously Baa1. BEAR STEARNS: Poor Performance Cues S&P's Six Rating Downgrades --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on six classes of mortgage pass-through certificates from Bear Stearns Asset Backed Securities Trust's series 2006-3 and 2006-SD3. Concurrently, S&P affirmed its ratings on 37 classes from these two deals as well as series 2006-SD2. The downgrades of four classes from series 2006-3 reflect the deteriorating performance of the collateral pools. The current loss levels for series 2006-3 and 2006-SD3 indicate that current and projected credit support percentages are not sufficient to support the ratings at their previous levels. As of the December 2007 remittance period, severely delinquent loans (90-plus days, foreclosures, and REOs) for series 2006-SD3 were 34.73% of the current pool balance, which represents an increase of 30.76% from six months ago and an increase of 83.27% year-over-year. Cumulative realized losses, as a percentage of the original pool balance, were 0.58%. Moreover, as of the December 2007 remittance period, severely delinquent loans for series 2006-SD3 were 8.88% of the current pool balance for structure group 1, which represents an increase of 17.77% from six months ago and 89.33% from one year ago. Likewise, severely delinquent loans were 13.21% of the current pool balance for structure group 2, which represents a 52.54% increase from six months ago and over a 100% increase from a year ago. Cumulative realized losses, as a percentage of the original pool balance, were 0.41% for structure group 1 and 0.04% for structure group 2. Notwithstanding the downgrades of the aforementioned classes from series 2006-3 and 2006-SD3, the remaining classes from these series have adequate credit support for the current ratings. A combination of subordination, excess spread, and overcollateralization (O/C) provides credit support for series 2006-3 and subordination provides credit support for series 2006- SD3. The affirmations reflect loss coverage percentages that are sufficient to maintain the current ratings. As of the December 2007 remittance period, severely delinquent loans for series 2006-SD2 were 8.81% of the current pool balance. Cumulative realized losses, as a percentage of the original pool balance, were 0.53%. The affirmations for this series are based on loss coverage percentages that are sufficient to maintain the current ratings. Subordination, O/C, and excess spread provide credit support for this deal. These transactions are 13 to 17 months seasoned and have outstanding pool factors of approximately 80.00% or lower. The underlying collateral for these deals originally consisted of first-lien, scratch & dent, fixed- and adjustable-rate mortgage loans on residential properties. Ratings Lowered Bear Stearns Asset Backed Securities Trust Mortgage pass-through certificates Rating ------ Series Class To From ------ ----- -- ---- 2006-3 M-4 BBB A- 2006-3 M-5 BB+ BBB+ 2006-3 M-6 BB BBB 2006-3 M-7 BB- BBB- 2006-SD3 I-B-5 CCC B 2006-SD3 II-B-5 CCC B Ratings Affirmed Bear Stearns Asset Backed Securities Trust Mortgage pass-through certificates Series Class Rating ------ ----- ------ 2006-3 A-1 AAA 2006-3 A-2 AAA 2006-3 A-3 AAA 2006-3 M-1 AA 2006-3 M-2 AA- 2006-3 M-3 A 2006-SD2 A-1 AAA 2006-SD2 A-2 AAA 2006-SD2 A-3 AAA 2006-SD2 M-1 AA 2006-SD2 M-2 A 2006-SD2 M-3 BBB 2006-SD2 M-4 BBB- 2006-SD3 I-A-1A AAA 2006-SD3 I-A-1B AAA 2006-SD3 I-A-1C AAA 2006-SD3 I-PO AAA 2006-SD3 I-A-2A AAA 2006-SD3 I-A-2B AAA 2006-SD3 I-A-3 AAA 2006-SD3 I-X AAA 2006-SD3 I-B-1 AA 2006-SD3 I-B-2 A 2006-SD3 I-B-3 BBB 2006-SD3 I-B-4 BB 2006-SD3 II-1A-1 AAA 2006-SD3 II-1A-2 AAA 2006-SD3 II-2A-1 AAA 2006-SD3 II-2A-2 AAA 2006-SD3 II-3A-1 AAA 2006-SD3 II-X-1 AAA 2006-SD3 II-3A-2 AAA 2006-SD3 II-X-2 AAA 2006-SD3 II-B-1 AA 2006-SD3 II-B-2 A 2006-SD3 II-B-3 BBB 2006-SD3 II-B-4 BB BECKERMAN KITCHENS: Gets $3.1 Mil. Buy Offer from Ludvik Capital ---------------------------------------------------------------- Ludvik Capital, Inc. has made an offer to buy Beckermann Kitchens. Ludvik made the offer for all the assets of Beckermann for $3.1 million in cash and securities to acquire the company from bankruptcy. Ludvik intends to form a new manufacturing company that will initially focus on producing kitchens for distribution in the United States and Canada. The company will also evaluate opportunities for international partnerships. "We have partners with more than 25 years industry experience that are willing to participate with us on this acquisition and we look forward to working with them and Beckermann on this transaction," said Frank Kristan, President of Ludvik Capital Inc. Ludvik Capital, Inc. -- http://www.ludvikcapital.com/-- makes investments in public and private companies. It provides long- term equity and debt investment capital to fund growth, acquisitions and recapitalizations of small and middle-market companies in a variety of industries. Located in Canada, Beckermann Kitchens was founded in 1896 and has been setting the standard for fine quality kitchens from European tradition of craftsmanship for many years. Beckermann manufactures and distributes Cabinetry throughout Canada and into the United States Market. BOSQUE POWER: Moody's Rates $412.5 Million Credit Facility at B1 ---------------------------------------------------------------- Moody's Investors Service assigned a definitive B1 rating to Bosque Power Company, LLC's $412.5 million first lien credit facility, which was initially rated B1 on a provisional basis based upon preliminary draft documentation. The rating carries a stable outlook. The definitive rating assignment follows Moody's receipt and review of substantially final documentation, the terms and conditions of which are not materially different from those previously conveyed to Moody's. CABLEVISION CORP: S&P Maintains 'BB' Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on Bethpage, Long Island-based cable operator Cablevision Corp. and removed the ratings from CreditWatch where they were placed on May 2, 2007 with negative implications. The outlook is negative. At the same time, Standard & Poor's affirmed its 'B+' senior unsecured debt rating for Cablevision, intermediate holding company CSC Holdings Inc., and subsidiary Rainbow National Services LLC, and also affirmed the 'B+' subordinated debt rating, the 'BBB-' senior secured rating and the '1' recovery ratings on Rainbow National Services. In addition, the rating on CSC Holdings Inc.'s $5.5 billion of secured bank facilities was raised to 'BB+' from 'BB' and the '2' recovery rating was affirmed. All ratings were removed from CreditWatch. The upgrade for this bank loan reflects Standard & Poor's revised bank loan methodology, adopted in June 2007, which was not applied to CSC Holding's bank loan because it was on CreditWatch at that time. The ratings were placed on CreditWatch with negative implications following the announcement that Cablevision's board of directors had accepted a buyout offer by the Dolan Family Group. Shareholders subsequently rejected the buyout in October 2007, but the ratings remained on CreditWatch pending S&P's review of the company's financial policy and financial and operating plans. As of Sept. 30, 2007, the company had about $11.3 billion of total funded debt outstanding, excluding collateralized debt obligations. Cablevision's ratings reflect the attractive demographics of the area served by the company's cable TV systems in the metro New York/New Jersey/Connecticut area, which comprise about 3.1 million basic cable customers. This has contributed to very good broadband penetration relative to the industry of 71%, and high overall subscriber average revenue per user in excess of $120, one of the highest levels in the industry, as well as healthy cable EBITDA margins of about 38%. This business is therefore considered to have a satisfactory business position. However, the attractive nature of the subscriber base has also prompted aggressive competition from Verizon's FiOS television/broadband services over the last year, which could accelerate even further in 2008 as Verizon increasingly receives video franchise relief from local regulators in Cablevision's markets. "We note that it would likely take several years for Cablevision to demonstrate that it can minimize losses to FiOS. Even if the FiOS impact can be blunted, a revision to a stable outlook would also require a tempered financial policy," said Standard & Poor's credit analyst Catherine Cosentino. CHARMING SHOPPES: Investor Group Moves for Three New Directors -------------------------------------------------------------- A group of Charming Shoppes Inc. investors lead by Crescendo Partners II, L.P., Series Q, has nominated a slate of three director nominees for election to the Board of Directors of Charming Shoppes Inc. at the company's 2008 Annual Meeting of Shareholders. The members of the group beneficially own an aggregate of 9,276,805 shares, or approximately 7.9% of the outstanding shares, of common stock of the company. The group has nominated these individuals as independent directors: -- Michael Appel, a Managing Director of Quest Turnaround Advisors, with significant retail experience; -- Arnaud Ajdler, a Managing Director of Crescendo Partners II, L.P.; and -- Robert Frankfurt, the President of Myca Partners. The group also sent a letter to the company on Jan. 15, 2008, highlighting its significant concerns with the company's current business strategy, its capital allocation process and its poorly performing stock price. In the letter the group outlined various measures to re-focus the company's business operations and unlock the true intrinsic value of the company. The group suggested, among others: * exploring the sale of non-core assets to simplify the business and focus management on improving its underperforming retail operations; and * slowing store expansion to focus management on fixing the current mix of businesses and increasing free cash flow by reducing capital expenditures. The group also noted that the company's current stock price is 6% lower than where the stock price was more than 12 years ago when Ms. Dorrit Bern became Chief Executive Officer compared to a 154% increase in the S&P 500 Index during the same period. Company Confirms Nomination Charming Shoppes Inc. confirmed that it has received notice that Crescendo Partners intends to nominate three individuals, including two hedge fund representatives, for election to Charming Shoppes' Board of Directors at the company's 2008 Annual Meeting of Shareholders. The company's Board is currently comprised of eight directors, seven of whom are independent. "We have had extensive conversations with the group and are prepared to have continuing conversations with them as long as they are constructive. However, the Board of Directors will not be distracted from its focus on the best interests of all Charming Shoppes shareholders by the threat of a proxy contest from a dissident shareholder group," the company said in a press statement. In a letter to employees dated Jan. 15, 2008, Charming Shoppes' Chief Executive Officer Dorrit J. Bern stated that "[a]lthough the industry as a whole is facing challenging economic and industry factors, we are confident in our direction for Charming Shoppes. We must continue to build our brands and provide our customers with superior products to create value, both for our shareholders and our customers." About Charming Shoppes Inc. Headquartered in Bensalem, Pennsylvania, Charming Shoppes Inc. (NASDAQ:CHRS) - http://www.charmingshoppes.com/-- is a multi- brand, multi-channel specialty apparel retailer specializing in women's plus-size apparel. The company operates 2,455 retail stores in 48 states. * * * As reported in the Troubled Company Reporter on Oct. 24, 2007, Moody's Investors Service placed the Ba3 Corporate family rating and Ba3 Probability of default rating of Charming Shoppes Inc. on review for possible downgrade following another downward revision in earnings and sales estimates for the year by the company on Oct. 11, 2007. The review for downgrade reflects the increase in the company's debt level combined with a deterioration in operating performance which has resulted in a material weakening of the company's overall credit profile. As reported in the Troubled Company Reporter on Oct. 18, 2007, Standard & Poor's Ratings Services revised its outlook on Charming Shoppes Inc. to negative from stable. At the same time, S&P affirmed the 'BB-' corporate credit rating on the company. CITIGROUP MORTGAGE: Fitch Retains Junk Ratings on Four Classes -------------------------------------------------------------- Fitch Ratings has taken rating actions on these Citigroup Mortgage Securities Inc., Trust issues: Series 1999-5: -- Class A-4 affirmed at 'AA'; -- Class A-5 affirmed at 'A+'; -- Class M-1A affirmed at 'B'; -- Class M-1B affirmed at 'B'; -- Class M-2 remains at 'C/DR5'. Series 2000-1: -- Class A-3 affirmed at 'A-'; -- Class A-4 affirmed at 'B'; -- Class A-5 affirmed at 'B'; -- Class M-1 remains at 'C/DR5;' -- Class M-2 revised to 'C/DR6' from 'C/DR5'. Series 2000-3: -- Class I A affirmed at 'B'; -- Class I M-1 remains at 'C/DR5'. The affirmations, affecting approximately $325.1 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The collateral supporting the above transactions consists of adjustable-rate and fixed-rate contracts secured by manufactured homes. All of the contracts were either originated or purchased by GreenPoint Credit, LLC and are currently serviced by GreenTree, rated 'RPS3+' by Fitch. Fitch makes a distinction in credit risk between the senior classes by taking into account payment priority and time to pay off. The classes within the senior tranches of the above series are paying sequentially. Fitch deems those senior classes which are expected to pay off sooner to be of lower credit risk than those senior classes which will be outstanding for a longer period of time. Series 1999-5 currently has a pool factor of 30% and is seasoned 96 months. All classes, except for class B, which was written down to $0 in July 2005 as a result of losses, have the benefit of a letter of credit provided by First Union National Bank to absorb future losses. To date, the $32 million LOC has been drawn down by 38% of its original value, or $12 million. Series 2000-1 currently has a pool factor of 34% and is seasoned 92 months. Originally all classes had the benefit of an LOC provided by GreenPoint, one supporting class B-2 and one supporting all other classes. However, class B-2 was paid off in October 2002, the senior LOC was drawn down to $0 in May 2003, and class B-1 was written down to $0 in August 2004. Series 2000-3 currently has a pool factor of 29% and is seasoned 90 months. Originally only class I B-2 had the benefit of an LOC provided by GreenPoint and that class paid off in May 2003. Class I B-1 was written down to $0 in November 2004. Fitch only rates certificates in Group 1. CREDIT SUISSE: Fitch Cuts Rating to CC from CCC on $9.9MM Certs. ---------------------------------------------------------------- Fitch Ratings has downgraded two classes, lowered the Distressed Recovery Rating on one class and affirmed 13 classes of Credit Suisse First Boston Mortgage Securities Corp.'s commercial mortgage pass-through certificates, series 2001-CK3 as: -- $12.7 million class L downgraded to 'B' from 'B+'; -- $9.9 million class M downgraded to 'CC/DR3' from 'CCC/DR1'. These classes are affirmed: -- $66.0 million class A-3 at 'AAA'; -- $582.4 million class A-4 at 'AAA'; -- Interest-only class A-X at 'AAA'; -- $42.3 million class B at 'AAA'; -- $56.3 million class C at 'AAA'; -- $11.3 million class D at 'AAA'; -- $14.1 million class E at 'AAA'; -- $25.4 million class F at 'AA+'; -- $8.0 million class G-1 at 'A+'; -- $11.7 million class G-2 at 'A+'; -- $14.1 million class H at 'A-'; -- $24.8 million class J at 'BBB-'; -- $9.0 million class K at 'BB'. Fitch does not rate the $21,000 class N or zero balance class O certificates. Classes A-1 and A-2 have paid in full. The downgrade to class M is due to the Fitch projected losses on the specially serviced loan. In November 2007 one loan transferred to special servicing due to nonpayment default. MBS Cos. is the current borrower and the loan is a 128-unit multifamily property in Houston, Texas (0.4%) that reported December 2007 occupancy of 19%. As of the December 2007 distribution date, the transaction has been reduced by 21% since issuance, to $887.9 million from $1.13 billion. In addition, 34 loans, 37.8% of the pool, have defeased. At issuance two loans were considered to have investment grade shadow ratings. The 888 Seventh Avenue loan has paid in full. The Atrium Mall is a 215,000 square foot retail center located in Chestnut Hill, Massachussetts. Occupancy as of June 2007 was 93.6% compared to 92% at issuance. The loan maintains its investment grade shadow rating. CREDIT SUISSE: Moody's Cuts 27 Tranches' Ratings on Delinquency --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of 27 tranches and has placed under review for possible downgrade the ratings of 10 tranches from 5 deals issued by Credit Suisse 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: CSAB Mortgage-Backed Trust Series 2007-1 -- Cl. 1-M-1, Currently Aa2 on review for possible downgrade, -- Cl. 1-M-2, Downgraded to Baa2, previously A2, -- Cl. 1-M-3, Downgraded to Ba2, previously Baa2, -- Cl. 1-M-4, Downgraded to Ba3, previously Baa3, -- Cl. 1-M-5, Downgraded to Caa1, previously Ba1. Issuer: CSFB Adjustable Rate Mortgage Trust 2007-1 -- Cl. C-B-1, Currently Aa2 on review for possible downgrade, -- Cl. C-B-2, Downgraded to Baa3, previously A2, -- Cl. C-B-3, Downgraded to B3, previously Baa2, -- Cl. 5-A-4, Currently Aaa on review for possible downgrade, -- Cl. 5-M-1, Currently Aa1 on review for possible downgrade, -- Cl. 5-M-2, Currently Aa2 on review for possible downgrade, -- Cl. 5-M-3, Currently Aa3 on review for possible downgrade, -- Cl. 5-M-4, Downgraded to Baa2, previously A1, -- Cl. 5-M-5, Downgraded to Ba1, previously A2, -- Cl. 5-M-6, Downgraded to Ba2, previously A3, -- Cl. 5-M-7, Downgraded to B1, previously Baa1, -- Cl. 5-M-8, Downgraded to Caa1, previously Baa2, -- Cl. 5-M-9, Downgraded to Caa3, previously Baa3. Issuer: CSFB Adjustable Rate Mortgage Trust 2007-2 -- Cl. 2-M-1, Currently Aa2 on review for possible downgrade, -- Cl. 2-M-2, Currently Aa3 on review for possible downgrade, -- Cl. 2-M-3, Downgraded to Baa3, previously A2, -- Cl. 2-M-4, Downgraded to Ba1, previously A3, -- Cl. 2-M-5, Downgraded to Ba3, previously Baa1, -- Cl. 2-M-6, Downgraded to B3, previously Baa2, -- Cl. 2-M-7, Downgraded to Caa2, previously Baa3. Issuer: CSMC Mortgage-Backed Trust Series 2007-1 -- Cl. 1-M-1, Currently Aa2 on review for possible downgrade, -- Cl. 1-M-2, Downgraded to Baa2, previously A2, -- Cl. 1-M-3, Downgraded to Baa3, previously A3, -- Cl. 1-M-4, Downgraded to Ba3, previously Baa2, -- Cl. 1-M-5, Downgraded to B3, previously Baa3, -- Cl. 1-B-1, Downgraded to Caa3, previously Ba2. Issuer: CSMC Mortgage-Backed Trust Series 2007-3 -- Cl. 1-M-1, Currently Aa2 on review for possible downgrade, -- Cl. 1-M-2, Downgraded to Ba3, previously A2, -- Cl. 1-M-3, Downgraded to B1, previously A3, -- Cl. 1-M-4, Downgraded to B3, previously Baa2, -- Cl. 1-M-5, Downgraded to Caa3, previously Baa3, -- Cl. 1-B-1, Downgraded to Ca, previously Ba2. DELPHI CORP: Obtains "Broad-Based" Support on Plan -------------------------------------------------- Delphi Corp. reported the voting results for its First Amended Joint Plan of Reorganization to the U.S. Bankruptcy Court for the Southern District of New York. Voting by classes of creditors and holders of interests, including shareholders, entitled to vote on the Plan illustrates broad-based support for the Plan, the company said in a news release. Of the more than 4,000 ballots cast by general unsecured creditors voting on the Plan, 3,329 or 81% of all voting creditors aggregated across classes voted to accept the Plan -- excluding ballots cast by GM, plaintiffs in the multi-district litigation and holders of interests. Of the total amount voted by all general unsecured creditor classes, 78% or $2,083,647,859.13 voted to accept the Plan. 100% of the ballots cast in the GM and MDL classes voted to accept the Plan in the respective amounts of $2.57 billion and $57.2 million. Of the approximately 217,000,000 shares voted by shareholders, 78% or 170,297,851 shares voted to accept the Plan. The broad-based support expressed by creditors and shareholders of Delphi Corporation and its principal subsidiaries holding its US and global businesses was reflected in the votes of each of the principal segments of the general unsecured creditor class of the Delphi-DAS Debtors (Class 1C). More than 70% of the ballots cast and 70% of the total dollar amount voted by Delphi's senior note claims, TOPrS claims, and all other claims, including trade claims, segments each voted separately to accept the Plan. The company noted that one of the classes in one of the subsidiary debtors (Delphi Diesel Systems Corp. - Class 6C) rejected the Plan because less than two-thirds in amount of the ballots cast supported the Plan. In addition, depending on whether the Bankruptcy Court allows certain other contested ballots to be counted, one additional class in each of two additional subsidiary debtors (Connection System Debtors - Class 3C and Delco Electronics Overseas Corporation - Class 5C) will have rejected the Plan based on a reduction in the percentage of dollar amounts voted in favor of the Plan below the statutory threshold. Although no assurances can be made, Delphi believes that the Plan satisfies the requirements of the Bankruptcy Code and is confirmable notwithstanding the rejection of the Plan by certain classes. A confirmation hearing on the Plan is scheduled to begin on Jan. 17, 2008. Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS: 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 Court approved Delphi's First Amended Joint Disclosure Statement and related solicitation procedures for the solicitation of votes on the First Amended Plan on Dec. 20, 2007. The Court will convene the hearing to consider confirmation of the Plan on Jan. 17, 2008. (Delphi Bankruptcy News, Issue No. 107; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELTA AIR: S&P Says Merger Talks Has No Effect on Ratings --------------------------------------------------------- Standard and Poor's says media sources reported that Delta Air Lines Inc. (B/Positive/--) has entered into merger talks with UAL Corp. (B/Stable/--) and Northwest Airlines Corp. (B+/Stable/--). Standard & Poor's Ratings Services said that this report has no effect on its ratings or outlook on Delta, but that confirmed merger negotiations would result in S&P's placing ratings of Delta and other airlines involved on CreditWatch, most likely with developing or negative implications. Although Delta has not confirmed the merger discussions, the head of the airline's pilots' union (which has a seat on Delta's board of directors) told the pilots in an internal (but widely reported) letter last week that industry consolidation may be very close. Delta had stated earlier that it is conducting an internal review regarding the desirability of pursuing a merger. Similarly, the CEO of Northwest is reported to have recently told that airline's employees that the company would carefully consider any merger proposal, and that the right transaction could be favorable for Northwest. UAL's CEO has been outspoken in favor of consolidation since the airline emerged from bankruptcy in early 2006. The credit implications of any merger would depend on Standard & Poor's evaluation of the competitive and operating opportunities and risks involved, and on how the merger was to be financed. An all-equity transaction, in which shareholders of one airline receive shares of the other, would clearly be more favorable, as it would not involve adding debt. S&P believes that it is likely that an announced merger agreement between Delta and either Northwest or UAL would trigger negotiations between the remaining airline and Continental Airlines Inc. (B/Stable/B-3). UAL's CEO has in the past stated that he believes a merger of UAL and Continental would have considerable benefits. At present, Northwest can block a merger involving Continental in most circumstances, but if Northwest itself enters into a merger with another large airline, that blocking right would end. DENVER RADIO: Wants to Hire Media Venture as Financial Advisor -------------------------------------------------------------- Denver Radio Company, LLC and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the District of Colorado to employ Media Venture Partners, LLC as its financial advisor and investment banker. Media Venture will: a) advise and assist the Debtor in connection with finding new interim financing, including identifying, analyzing, structuring, negotiating and effecting a financing transaction to provide for the working capital needs and administrative expenses, including legal fees, associated with a Chapter 11 reorganization; b) advise and assist the Debtor in connection with finding new debt or equity financing, including identifying, analyzing, structuring, negotiating and effecting a refinancing of the Debtor's existing indebtedness pursuant to a rights offering or other offering of private securities (whether in the form of debt, equity or equity-linked securities), or any other similar transaction or series of transactions or any combination; and c) advise and assist the Debtor in connection with identifying, analyzing, structuring, negotiating and effecting potential purchasers in connection with the potential sale of the Debtor or all or a portion of its assets through any structure, vehicle or form of transaction, including, but not limited to direct or indirect acquisition, sale of assets, merger, consolidation, restructuring, transfer or securities or any similar or related transaction. Pursuant to an engagement agreement entered into between the Debtors and Media Venture, the Debtors will pay the firm a: -- Monthly Retainer Payment. MVP will continue to receive a monthly retainer payment of $15,000 for the Debtors collectively on each monthly anniversary of the execution of the engagement letter. 50% of such monthly retainers will be credited against a transaction fee or capital raise fee; -- DIP Financing Fee. MVP will receive a cash fee upon closing of a DIP financing transaction, whether on a stand alone basis or to consummate any other transaction, equal to 2% for any debt security pari passu or senior to the Debtors' existing pre-petition indebtedness; -- Capital Raise Fee. MVP will receive a cash fee in conjunction with a Capital Raise in an amount equal to 1% for any such senior or subordinated debt, 3% for all convertible debt and mezzanine debt, and 5% for all convertible preferred, common equity, and any other equity or equity-listed securities; and -- M&A Transaction Fee. At the closing of any M&A transaction, MVP will be paid a cash fee out of proceeds as a cost of sale at the closing of an M&A transaction, equal to 1% of the total consideration paid, with a minimum transaction fee of $400,000. The Debtor tells the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. Based in Aurora, Colorado, Denver Radio Co., LLC -- http://www.sassymartini.com/-- owns and manages radio stations. The company and its affiliates filed for Chapter 11 protection on Dec. 26, 2007 (Bankr. D. Colo. Lead Case No. 07-25039). Michael J. Pankow, Esq., at Brownstein Hyatt Schreck, P.C., represents the Debtors in their restructuring efforts. The Debtors' schedules of assets and liabilities reflect total assets of $48,289,050, and total debts of $24,959,175. DENVER RADIO: Wants to Employ Kagan Media as Appraiser ------------------------------------------------------ Denver Radio Company, LLC and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the District of Colorado to employ Kagan Media Appraisals as their appraiser. Kagan Media will provide appraisal services in connection with a fair market valuation of the Debtors' two radio stations, operating under the call letters KTNI-FM and KSYY-FM. The Debtors tell the Court that Robin Flynn of Kagan Media will charge the Debtors an hourly rate of $750 for appraisal services. The Debtors assure the Court that the firm does not hold or represent any interest adverse to their bankruptcy estates. Based in Aurora, Colorado, Denver Radio Co., LLC -- http://www.sassymartini.com/-- owns and manages radio stations. The company and its affiliates filed for Chapter 11 protection on Dec. 26, 2007 (Bankr. D. Colo. Lead Case No. 07-25039). Michael J. Pankow, Esq., at Brownstein Hyatt Schreck, P.C., represents the Debtors in their restructuring efforts. The Debtors' schedules of assets and liabilities reflect total assets of $48,289,050, and total debts of $24,959,175. DIEGO INC: To Cut Workforce by 50%, WSJ Says -------------------------------------------- Digeo Inc. is cutting its workforce to 80 from 160 employees, Don Clark of The Wall Street Journal reports citing a company spokesman. According to WSJ, the company will be concentrating on developing fewer products, primarily on a next-generation consumer model of media recorders. Based in Kirkland, Wash., Digeo Inc. manufactures TV set-top boxes. DIOGENES CDO: Moody's Junks Rating on Eight Notes Classes --------------------------------------------------------- Moody's Investors Service downgraded ratings of eleven classes of notes issued by Diogenes CDO III, Ltd., and left on review for possible further downgrade ratings of five of these classes of notes. The notes affected by this rating action are: Class Description: Up to $360,000,000 Class A-1a Floating Rate Notes Due August 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $120,000,000 Class A-1b Floating Rate Notes Due August 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $34,400,000 Class A-1c Floating Rate Notes Due August 2052 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $72,000,000 Class A-2 Floating Rate Notes Due August 2052 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $36,800,000 Class B-1 Floating Rate Notes Due August 2052 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $26,400,000 Class B-2 Deferrable Floating Rate Notes Due August 2052 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ca Class Description: $36,000,000 Class C-1 Deferrable Floating Rate Notes Due August 2052 Prior Rating: Ba2, on review for possible downgrade Current Rating: Ca Class Description: $26,400,000 Class C-2 Deferrable Floating Rate Notes Due August 2052 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $24,000,000 Class D-1 Deferrable Floating Rate Notes Due August 2052 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: $8,000,000 Class D-2 Deferrable Floating Rate Notes Due August 2052 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Class Description: $8,000,000 Class E Deferrable Floating Rate Notes Due August 2052 -- Prior Rating: Caa2, 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, as reported by the Trustee on Dec. 11, 2007, of an event of default caused by a failure of the Class A Overcollateralization Ratio to be greater than or equal to the required amount pursuant Section 5.1(h) of the Indenture dated Aug. 3, 2007. Diogenes CDO III, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities. Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, the Class A Overcollateralization Ratio 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 A-1a, Class A-1b, Class A-1c Notes, Class A-2 Notes, and the Class B-1 Notes remain on review for possible further action. DUNMORE HOMES: Court Orders Transfer of Venue to California ----------------------------------------------------------- The Hon. Martin Glenn of the U.S. Bankruptcy Court for the Southern District of New York has ordered the transfer of the venue of Dunmore Homes Inc.'s Chapter 11 case to the U.S. Bankruptcy Court for the Eastern District of California, Sacramento Division. The Debtor originally filed its voluntary bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of New York in November 2007. As reported in the Troubled Company Reporter on Nov. 29, 2007, Cal Sierra Construction Inc., Pacific Paving Co. Inc., and Valley Utility Services Inc., sought for a venue transfer of the Debtor's case to California. Certain parties, including Teichert Construction, Travelers Bond and the Official Committee of Unsecured Creditors, joined in the venue transfer request. The Debtor and two creditors, Bank of New York Trust Company, N.A., and KeyBank National Association opposed the Venue Transfer Motion. Dunmore New York, the Debtor, was recently incorporated in New York to facilitate the purchase of its predecessor, Dunmore California, for nominal consideration. Judge Glenn acknowledges that the Debtor was incorporated in New York and would be considered domiciled there. "Therefore, the venue selected by the Debtor is proper under [Section] 1408 [of the Judicial and Judiciary Procedures Code]," he opines. Judge Glenn, however, finds that Cal Sierra and the Joinder Parties have met their burden of demonstrating that venue transfer is warranted in the Debtor's case under both the standards of the "interests of justice" and "convenience of the parties." In evaluating the economic and efficient administration of the case, the Bankruptcy Court looked at the Debtor's need to obtain postpetition financing and financing to fund reorganization, and the location of the sources of financing and the management personnel in charge of obtaining it. Judge Glenn asserts that in the Debtor's case, the factors support the transfer of venue because postpetition financing has already been obtained from Sidney Dunmore, a California resident. "Further financing for a purchase of assets or a wind down of the business is just as likely to come from California as [opposed to] New York since the Debtor's main assets are the California real estate owned by its Subsidiaries," Judge Glenn adds. Judge Glenn notes that the Debtor's only offices, management and employees are located in California; and its sole shareholder resides in California. The Debtor's counsel, while having a New York office, is based in California. The Debtor's financial advisor, Alvarez & Marsal North America LLC, and its investment banker, Alvarez & Marsal Securities LLC, are based in California and Arizona. The sources of the Debtor's funding are likely in California and the location of the professionals and management personnel in charge of obtaining that funding are in California or Arizona, the Bankruptcy Court opines. Thus, Judge Glenn maintains, the efficient administration of the case is heavily in favor of transfer to California. Judge Glenn says that both the New York Court and the California Court have the capacity to handle the Debtor's case and provide a fair proceeding. However, because cases are already pending in California state courts against some of the Debtor's subsidiaries and many issues in the case are likely to be governed by California law, judicial economy would be better served if all cases were pending in California, Judge Glenn concludes. Moreover, it does not appear that the Debtor's interests will be harmed or that the estate will suffer a diminution in value if the case is transferred to California because its employees and professionals are located in California, the Bankruptcy Court avers. With respect to its creditors, the Debtor is a co-borrower or guarantor of loans from 10 large institutional national lenders representing over $200,000,000 in debt; while the remaining creditors in the Debtor's top 30 creditors list, except one, are located in California and represent over $12,000,000 in debt. Judge Glenn points out that considering the number of creditors and the amounts owed, changing the venue is not advisable unless consideration is given to the quality of participation available to the creditors. "A California venue would not be more inconvenient to the creditors as most would have to travel to appear in New York or California," Judge Glenn says. "However, the majority of trade creditors would not have to travel very far if venue was transferred to California." In addition, the Bankruptcy Court points out that the Debtor is already in the process of liquidating. "Marketing and selling the Debtor's California real estate assets can best be overseen by a California bankruptcy court with greater familiarity with the market," Judge Glenn avers. A full-text copy of the Dunmore Venue Transfer Order is available for free at http://researcharchives.com/t/s?270e About Dunmore Homes Headquartered in Granite Bay, California, Dunmore Homes Inc. is a privately-owned homebuilder. The company filed for Chapter 11 protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533). Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors has selected Morrison & Foerster LLP as its counsel in this bankruptcy proceeding. When the Debtor filed for protection against its creditors, it listed assets and liabilities of more than $100 million. The Debtor's exclusive period to file a plan expires on March 7, 2008. (Dunmore Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DUNMORE HOMES: Morrison & Foerster Okayed as Committee's Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York has approved the request of the Official Committee of Unsecured Creditors in Dunmore Homes Inc.'s bankruptcy case for authority retain Morrison & Foerster LLP as its counsel effective as of Nov. 26, 2007. As reported in the Troubled Company Reporter on Jan. 4, 2008, the Committee said that it sought the employment of Morrison & Foerster to represent it and perform services on its behalf in connection with carrying out its fiduciary duties and responsibilities under the Bankruptcy Code consistent with Section 1103(c) and certain other provisions of the Bankruptcy Code. Committee member Bank of New York Trust Company N.A., said that Morrison & Foerster will: (a) advise the Committee with respect to its rights, powers, and duties in Dunmore Homes, Inc.'s case; (b) assist and advise the Committee in its consultations with the Debtor relative to the administration in the case; (c) assist the Committee in analyzing the claims of the Debtor's creditors and in negotiating with those creditors; (d) assist with the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of the Debtor and of the operation of the Debtor's business; (e) assist the Committee in its analysis of, and negotiations with, the Debtor or any third party concerning matters related to, among other things, the terms of a plan of reorganization or liquidation; (f) assist and advise the Committee with respect to its communications with the general creditor body regarding significant matters in this case; (g) represent the Committee at all hearings and other proceedings; (h) review and analyze all applications, orders, statements of operations, and schedules filed with the Court; (i) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interest and objectives; and (j) perform other legal services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. J. Chris Matthews of the Bank of New York Trust Company related that MF is an internationally recognized law firm with extensive experience and expertise in bankruptcy and reorganization proceedings. The attorneys at MF have broad-based experience and a national reputation in bankruptcy and reorganization proceedings as well as extensive experience and knowledge practicing before the Court. Through MF, Mr. Matthews added, the Committee will have the benefit of knowledge and experience, as well as the ability to call upon the attorneys within MF with expertise in other specialized areas of law as may be needed. MF will charge the Committee for its legal services on an hourly basis in accordance with its ordinary and customary rates. The Committee related that the firm's current hourly rates, which will be charged in respect of the primary members of the MF engagement team for the Committee, are: Attorney Position Rate -------- -------- ---- Karen Ostad Partner $750 Adam Lewis Partner $650 Alexandra Steinberg Barrage Associate $515 Vincent J. Novak Associate $375 From time to time, other MF attorneys may be involved in the Debtor's case, as needed, the hourly rates of which are: Professional Hourly Rate ------------ ----------- Partners and counsel $520 to $850 Associates $225 to $540 Legal Assistants $105 to $270 In addition to the hourly rates, MF charges clients for actual and necessary costs of support services the firm provides in connection with a representation, including court reporters, transcripts, computerized research, filing fees, photocopying charges, and long-distance telephone calls. MF will charge the cost of these expenses in a manner and at rates consistent with charges generally made to the firm's other clients. All charges for which MF seeks payment are subject to Court approval. Karen A. Ostad, Esq., a partner at MF, assured the Court that her firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. MF does not hold any interest adverse to the Debtor's estate or its creditors in the matters upon which the firm is to be engaged, Ms. Ostad maintained. While employed by the Committee, MF told the Court that it will not represent any person having an adverse interest in connection with the Debtor's case. Ms. Ostad noted that in 2006, MF represented Alleghany Properties, a Delaware LLC in a real estate matter involving properties sold to Dunmore Croftwood LLC, which is not a debtor in this case. MF says it is unaware of any claim Alleghany has against the Debtor. However, in the event Alleghany has any claim, MF will promptly notify the Debtor, the Court and the U.S. Trustee of any matter that impacts the disclosures noted, according to Ms. Ostad. In addition, MF currently represents Dunmore Capital Fund LP, providing advice regarding real estate investment fund formation, Ms. Ostad noted. Sidney Dunmore Jr. is a principal of Dunmore Capital. Upon information and belief, Dunmore Jr. is the son of Sidney B. Dunmore and otherwise is wholly unrelated to the Debtor's case, Ms. Ostad related. Moreover, Dunmore Capital is unaffiliated with the Debtor, she averred. About Dunmore Homes Headquartered in Granite Bay, California, Dunmore Homes Inc. is a privately-owned homebuilder. The company filed for Chapter 11 protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533). Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors has selected Morrison & Foerster LLP as its counsel in this bankruptcy proceeding. When the Debtor filed for protection against its creditors, it listed assets and liabilities of more than $100 million. The Debtor's exclusive period to file a plan expires on March 7, 2008. (Dunmore Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DUNMORE HOMES: Panel Taps Mesirow Financial as Financial Advisors ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in Dunmore Homes Inc.'s bankruptcy cases asks the U.S. Bankruptcy Court for the Southern District of New York for authority to retain Mesirow Financial Consulting LLC as its financial advisors nunc pro tunc to Dec. 28, 2007. The Bank of New York Trust Company N.A., a member of the Committee, asserts that the services of MFC will benefit all parties and parties-in-interest by improving creditor recoveries and maximizing the value of the estate of Dunmore Homes Inc. Specifically, as the Committee's financial advisors, MFC will: (a) assist in the review of reports or filings as required by the Bankruptcy Court or the Office of the United States Trustee, including, but not limited to, schedules of assets and liabilities, statements of financial affairs and monthly operating reports; (b) review the Debtor's financial information, including, but not limited to, analyses of cash receipts and disbursements, financial statement items and proposed transactions for which Bankruptcy Court approval is sought; (c) review and analyze reports regarding cash collateral and any debtor-in-possession financing arrangements and budgets; (d) analyze assumption and rejection issues regarding executory contracts and leases; (e) review and analyze the business and financial condition of the Debtor generally; (f) assist in evaluating alternatives available to the creditors; (g) review and critique the Debtor's financial projections and assumptions; (h) review and critique real estate asset and liquidation valuations; (i) assist in preparing documents necessary for confirmation; (j) advice and assist the Committee in negotiations and meetings with the Debtor and the bank lenders; (k) advice and assist on certain tax issues; (l) assist with the claims resolution procedures, including, but not limited to, analyses of creditors' claims by type and entity; (m) provide litigation consulting services and expert witness testimony regarding confirmation issues, avoidance actions or other matters; and (n) provide other functions as requested by the Committee or its counsel. According to the Committee, it has selected MFC because of the firm's diverse experience and extensive knowledge in finance, bankruptcy, and real estate. MFC also has considerable experience with rendering services to creditors' committees and other parties in numerous Chapter 11 cases, the Committee notes. MFC will be paid for its services based on the firm's customary hourly rates for financial advisory services: Level Hourly Rates ----- ------------ Sr. Managing Director $650 to $690 Managing Director and Director $650 to $690 Senior Vice-President $550 to $620 Vice President $450 to $520 Senior Associate $350 to $420 Associate $190 to $290 Paraprofessional $150 MFC will also be reimbursed for actual and necessary expenses the firm incurred or will incur in the course of providing services to the Committee. The Committee further asks the Court to require the Debtor and its bankruptcy estate to indemnify MFC. Leon Szlesinger of Mesirow Financial assures the Court that his firm is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code. MFC does not hold nor represent any adverse interest to the bankruptcy estate of the Debtor with respect to the matter on which MFC will be employed, he adds. About Dunmore Homes Headquartered in Granite Bay, California, Dunmore Homes Inc. is a privately-owned homebuilder. The company filed for Chapter 11 protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533). Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors has selected Morrison & Foerster LLP as its counsel in this bankruptcy proceeding. When the Debtor filed for protection against its creditors, it listed assets and liabilities of more than $100 million. The Debtor's exclusive period to file a plan expires on March 7, 2008. (Dunmore Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Gets Lenders Consent to Amend DIP Financing Terms ------------------------------------------------------------------ DURA Automotive Systems, Inc., said in a filing with the Securities and Exchange Commission that it received the necessary consents from its lenders to amend the terms of the Revolving DIP Credit Agreement and the Term Loan DIP Credit Agreement to, among other things, (i) extend their final maturity dates from Dec. 31, 2007 to Jan. 31, 2008, (ii) restrict outstandings under the Revolving DIP Credit Agreement to a maximum amount of $48 million, (iii) waive the minimum EBITDA covenant under the Revolving DIP Credit Agreement during January 2008 and extend the capital expenditure covenant set forth in the Term Loan DIP Credit Agreement, (iv) incorporate a new minimum excess availability covenant in the Revolving DIP Credit Agreement and (v) increase the interest rate set forth in the Term Loan DIP Credit Agreement by 2.00%. Debtors Obtain Reduction of Carve-Out Cap Marc Kieselstein, P.C., Esq., at Kirkland & Ellis, LLP, in Chicago, Illinois, tells the Court that the Amended DIP Documents contemplate the reduction of the Carve-Out Cap and provided specific consent of the Postpetition Secured Parties to the reduction. Mr. Kieselstein says reduction of the Carve-Out Cap will provide the Debtors with enhanced access to working capital to fund ongoing operations. In this regard, the Debtors submitted an amended Final DIP Order to add a paragraph implementing the reduction in the Carve-Out Cap, consistent with the DIP Amendments. The Court's order approving the request provides that Carve-Out Cap is reduced from $10 million to $5 million. Copies of the Amendment No. 4 and Waiver with Respect to Revolving DIP Credit Agreement and Amendment No. 5 and Waiver with Resp