T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 22, 2008, Vol. 12, No. 18 Headlines ACA CAPITAL: Obtains February 19 Waiver from Lenders ALLENTOWN AREA: Heavy Losses Cue S&P to Cut Rating to BB- AMBAC ASSURANCE: Botched Equity Offering Cues S&P's Negative Watch ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets ASARCO LLC: Asarco Inc. Wants Chapter 11 Examiner Appointed ASARCO LLC: Wants Action Removal Period Extended Until June 13 ASARCO LLC: Seeks April 11 Extension of Plan-Filing Period AVNET INC: Signs Definitive Pact Acquiring Azzurri Tech BARNERT HOSPITAL: Has Until April 11 to File Chapter 11 Plan BIOMET INC: Earn $89 Million in Second Quarter Ended November 30 BASIS YIELD: Judge Gerber Denies Recognition Under Chapter 15 BEAR STEARNS: Fitch Holds 'B-' Rating on $10.8MM Class K Certs. BEAR STEARNS: Limited Paydown Cues Fitch to Affirm Ratings BENCHMARK ELECTRONICS: Earns $22 Million in 2007 Third Quarter BOMBARDIER INC: $1BB Debt Redemption Cues Fitch to Lift Ratings BRUTI ASSOCIATES: Case Summary & 19 Largest Unsecured Creditors BUFFETS HOLDINGS: Board Vice-Chairman Roe H. Hatlen Resigns C AND C PROP: Court Approves Adequacy of Disclosure Statement C-BASS MORTGAGE: S&P Junks Ratings on Four Certificate Classes CABELA'S CREDIT: Fitch Rates $11.25MM Class D Notes at BB+ CARRINGTON MORTGAGE: S&P Junks Ratings on Two Classes from 'B' CHEC LOAN: S&P Junks Rating on Class B-2 Securities From 'BB' CLAYMONT STEEL: Evraz Completes Tender Offer for Common Stock CONCORD RE: S&P Withdraws BB+ Rating on $365 Million Bank Loan CONGOLEUM CORP: Sept. 30 Balance Sheet Upside-Down by $44.9 Mil. CONTINENTAL AIRLINES: Reports 2007 Pre-Tax Income of $566 Million CORNERSTONE FIN'L: Case Summary & Ten Largest Unsecured Creditors COUNTRYWIDE FINANCIAL: Inks 4th Amendment to Restated Rights Pact CREDIT SUISSE: S&P Cuts Certificate Rating to B on Recent Losses DAVID FLANAGAN: Voluntary Chapter 11 Case Summary DAVID HURT: Voluntary Chapter 11 Case Summary DAVID PIERCE: Case Summary & 20 Largest Unsecured Creditors DELPHINUS CDO: Moody's Junks Rating on $48 Mil. Notes from Ba2 DOWNTOWN NORTH: Case Summary & 20 Largest Unsecured Creditors DURA AUTOMOTIVE: Wants to Assume GM Component Supply Agreement ECHOSTAR COMMS: S&P Maintains 'BB-' Corporate Credit Rating ECOMARES INC: Chapter 15 Petition Summary ELWOOD ENERGY: S&P Lifts Rating on $402 Mil. 2026 Bonds to 'BB' EMI GROUP: Terra Firma Outlines Restructuring Plan ENECO INC: Case Summary & 20 Largest Unsecured Creditors ERIE BAY: Case Summary & 17 Largest Unsecured Creditors EUROFRESH INC: S&P Cuts Ratings to 'D' on Missed Interest Payment FEDDERS CORP: Completes $7.5 Million Sale of Affiliate's Assets FEDDERS CORP: Sells Eubank Coil to National Oil for $2.3 Million FEDDERS CORP: Unsecured Creditors Want to Sue Insiders & Lenders FLEXTRONICS INTERNATIONAL: Dr. Willy Shih Joins Board of Directors GCI INC: Earns $2.2 Million in Third Quarter Ended Sept. 30 GS MORTGAGE: Fitch Junks Ratings on Four Certificate Classes HARRAH'S ENT: Fitch Withdraws 'BB+' Issuer Default Rating HOFF JEWELERS: Case Summary & 20 Largest Unsecured Creditors HOVNANIAN ENT: Fitch Lowers Issuer Default Rating to B- from BB- HYDROCHEM INDUSTRIAL: S&P Withdraws 'B' Corporate Credit Rating INDYMAC RESIDENTIAL: Expected Losses Cue Fitch to Junk Ratings INTERSTATE BAKERIES: Yucaipa Disapproves Disclosure Statement JP MORGAN: Fitch Downgrades Ratings on 25 Certificate Classes JP MORGAN: Fitch Junks Ratings on Two Certificate Classes KORYN ROLSTAD: Case Summary & Five Largest Unsecured Creditors LEISURE LIVING: Case Summary & 11 Largest Unsecured Creditors LENNAR CORP: Names Sherrill Hudson as Board Independent Member LONG BEACH MORTGAGE: Moody's Downgrades and Reviews 18 Ratings MASHANTUCKET PEQUOT: Moody's May Downgrade Ba1 Note Rating MASTR ADJUSTABLE: Class B-5 Obtains S&P's Junk Rating from 'B' MERRILL LYNCH: Moody's Junks "B1" Rating on Class B-1 Debentures MERRILL LYNCH: Moody's Reviews Ba1 Rating for Likely Downgrade MUSICLAND HOLDING: Parties Extend Trade Claims Filing to Feb. 29 MZT HOLDINGS: Files Certificate of Dissolution in Delaware NACIO SYSTEMS: Voluntary Chapter 11 Case Summary OAK MESA: Case Summary & Eight Largest Unsecured Creditors OWNIT MORTGAGE: Court Confirms Third Amended Liquidation Plan PEP BOYS: Moody's Puts All Ratings Under Review for Possible Cuts PETRO ACQUISITIONS: Voluntary Chapter 11 Case Summary PINE RIVER: Court Confirms Chapter 11 Plan of Liquidation QUEBECOR WORLD: Files for Chapter 11 Protection in Manhattan QUEBECOR WORLD: Case Summary & 57 Largest Unsecured Creditors QUEST TRUST: Poor Credit Support Spurs S&P's Ratings Downgrade R-G CROWN: Fitch Lifts Ratings on Completed FITB Merger Deal RBSGC MORTGAGE: Fitch Affirms 'B' Rating on Class 3-B-5 Certs. REGAL ENT: Inks $210MM Merger Deal With Consolidated Theatres REGAL ENTERTAINMENT: $210 Mil. Deal Won't Affect S&P's Rating RITCHIE MULTI-STRATEGY: Wants Involuntary Petition Dismissed SEA CONTAINERS: Wants SC Iberia and YMCL Guarantees Approved SIERRA TIMESHARE: Moody's Puts Ba2 Final Rating on Class B Notes SPIRIT AEROSYSTEMS HOLDINGS: Earns $83.6 Million in 2007 3rd Qtr. SRG 457: Voluntary Chapter 11 Case Summary STUDENT FINANCE: Ch. 7 Trustee Balks at Claims Totaling $1 Billion TRIGEM COMPUTER: Representative Files 6th Section 1518(1) Report WALTERS OIL: Case Summary & 19 Largest Unsecured Creditors WASHINGTON MUTUAL: Moody's Ratings Unmoved by $1.9 Bil. Losses WCI COMMUNITIES: S&P's CCC Rating Unaffected by Loan Amendments WELLS FARGO: Fitch Junks Rating on Class B-5 Certificates XYIENCE INC: Case Summary & 20 Largest Unsecured Creditors * Fitch Cuts Ratings on 28 CLO Tranches and Puts on Neg. Watch * Fitch Says Extended Buybacks May Increase M&A for Oil Majors * Large Companies with Insolvent Balance Sheet ********* ACA CAPITAL: Obtains February 19 Waiver from Lenders ---------------------------------------------------- ACA Capital Holdings, Inc. has entered into a second forbearance agreement with its structured credit and other similarly situated counterparties. Under the agreement, the counterparties have waived all collateral posting requirements, termination rights and policy claims relating to the rating of ACA Financial Guaranty Corporation, ACA Capital's financial guaranty insurance subsidiary, under their respective transaction documents including any credit support annexes and similar agreements. The forbearance will remain effective through Feb. 19, 2008, at 11:59 p.m. (New York City local time). The company has reached an additional short-term agreement with its counterparties and continues to work closely with them to develop a permanent solution to stabilize its capital position. About ACA Capital ACA Capital Holdings Inc. (NYSE: ACA) (OTC BB: ACAH.PK) -- http://www.aca.com/-- is a holding company that provides financial guaranty insurance products to participants in the global credit derivatives markets, structured finance capital markets and municipal finance capital markets. It also provides asset management services to specific segments of the structured finance capital markets. The company participates in its target markets both as a provider of credit protection through the sale of financial guaranty insurance products, for risk-based revenues, and as an asset manager, for fee-based revenues. ACA Capital has offices in New York, London, and Singapore. ACA Capital, through ACA Financial Guaranty Corporation, provides credit protection products. ACA Financial insures the principal and interest of bonds issued in the public finance market and targets the low investment grade ("BBB-") to high non-investment grade ("BB") portion of the public finance market. Typically, ACA Financial is paid one payment for insurance, up-front, based on the total amount of principal and interest insured. The payments received are held in reserve and earn out over the life of the related financial guaranty, nominally 30 years. At Sept. 30, 2007, ACA Financial had $7.0 billion of gross par exposure in its public finance business. * * * ACA Capital's balance sheet as of Sept. 30, 2007, showed total assets of $4.9 billion, total liabilities of $5.8 billion, and minority interest of $9.5 million, resulting in total stockholders' deficit of $883.3 million. ALLENTOWN AREA: Heavy Losses Cue S&P to Cut Rating to BB- --------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Allentown Area Hospital Authority, Pennsylvania's series 2005 hospital and series 1998A-B bonds revenue bonds, issued for Sacred Heart Hospital of Allentown, to 'BB-' from 'BB+', reflecting significant operating losses, excluding investment income, grants, and contributions over the past several years that have been well below management's budgeted expectations for each year. The outlook is stable. "To achieve a higher rating, Sacred Heart will need to demonstrate a trend of improved financial performance across the system, and more specifically at the hospital and with its employed physicians," said Standard & Poor's credit analyst Jennifer Soule. "It would be challenging for Sacred Heart to reach an investment- grade rating over the next one to two years, given current market dynamics and the organization's limited financial flexibility." The 'BB-' reflects Sacred Heart's modest improvement in fiscal 2007 results that was not as strong as management's original projections, and this trend continues through the first four months of fiscal 2008 ended Oct. 31, 2007; and management's various changes throughout the system in recent months, including the closure of the hospital's open heart program, which it expects to provide cost savings; however, S&P believes that it will be difficult for the organization to realize its projected operating results in fiscal 2008. The rating also reflects a highly competitive marketplace where two larger health systems are a major presence, although Sacred Heart continues to work in collaboration with each entity where plausible. A lower rating is precluded by an adequate and stable balance sheet for the rating category, characterized by 76 days' cash on hand, a 52.6% debt-to-capitalization ratio, and a 50.8% cash-to- debt ratio. The lowered rating affects about $41.8 million in rated debt. AMBAC ASSURANCE: Botched Equity Offering Cues S&P's Negative Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed Ambac Assurance Corp.'s financial strength, financial enhancement, and issuer credit ratings and Ambac Financial Group Inc.'s senior unsecured, issuer credit, and hybrid security ratings on CreditWatch with negative implications. At the same time, Standard & Poor's placed the preferred stock ratings of the committed capital facilities supported by, and for the benefit of, Ambac on CreditWatch with negative implications. The rating actions follow Ambac Financial Group's announcement that it is not proceeding with a planned $1.0 billion equity offering due to market conditions. Based on the results of S&P's latest stress test, published on Jan. 17, Standard & Poor's identified a capital shortfall of approximately $400 million in new capital in applying S&P's ratings criteria. In S&P's opinion, the decision not to proceed with the equity offering is symptomatic of an environment in which Ambac's capital-raising options are impaired. At the same time, the amount of additional capital that Ambac may need to sustain S&P's view of the current ratings could continue to increase, reflecting the uncertainty surrounding the ultimate levels of subprime and other mortgage- related losses. Ambac continues to explore capital-raising options, but it is increasingly uncertain whether it can implement any of these over the near term. To the extent that Ambac is unable to raise sufficient capital over the near term in relation to its increased capital needs, these ratings could be lowered. ARROW ELECTRONICS: Acquiring Indian Distribution Business Assets ---------------------------------------------------------------- Arrow Electronics Inc. agreed to acquire all of the assets related to the franchise components distribution business of Hynetic Electronics and Shreyanics Electronics in India, effective Jan. 1, 2008. Privately owned, Hynetic Electronics and Shreyanics Electronics are leading electronic component distributors in India. "I am delighted to add the components distribution business of Hynetic to our expanding franchise in the Asia Pac region, further strengthening our leadership position in the fast- growing Indian marketplace. The Hynetic business is similar to Arrow's, with its demand-creation business model and strong engineering capabilities, and we anticipate meaningful synergies between our two businesses. Hynetic's complementary linecard and experienced sales professionals will allow us to expand our product portfolio and offer improved services and support to our business partners," said Michael J. Long, president of Arrow Global Components. "This acquisition will be beneficial to Arrow, with an expanded customer base focusing on the rapidly growing small- and medium- sized market and additional strategic product lines, which are critical for Arrow to further expand market share in India. At the same time, Hynetic's customers and suppliers gain instant access to Arrow's specialized expertise, technical resources, supply chain solutions and extensive logistics capabilities," said Peter Kong, president of Arrow Asia Pacific. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. ASARCO LLC: Asarco Inc. Wants Chapter 11 Examiner Appointed ----------------------------------------------------------- Asarco Incorporated, the 100% equity holder of ASARCO LLC and its debtor-affiliates, asks the U.S. Bankruptcy Court for the Southern District of Texas to appoint an examiner to: (a) investigate the facts and circumstances surrounding the good faith of the ongoing negotiations among the Debtors and certain other constituents with respect to the terms of the future plan of reorganization for the Debtors; (b) determine the value of the Debtors; (c) investigate the good faith of the settlements of claims reached among the Debtors, the asbestos claimants and the United States Department of Justice with respect to asbestos and environmental claims asserted against the Debtors; and (d) investigate whether ASARCO LLC has fulfilled its fiduciary duties to its parent company, Asarco Inc. Charles A. Beckham, Jr., Esq., at Haynes and Boone, LLP, in Houston, Texas, points out certain issues that he thinks creates a "disturbing picture," not only as to whether the Debtors fulfilled their fiduciary duties, settled claims in good faith, and entered into appropriate plan negotiations, but also as to whether they have fulfilled their responsibilities to the Court. He alleges that Asarco LLC is hiding "crucial information regarding claims and valuation." He relates that in November 2007, ASARCO LLC's counsel has led the Court to believe that the company did not have an estimate of claims or a valuation analysis, and yet, ASARCO LLC, in December, presented claims analysis and valuation reports at the the fraudulent complaint litigation against Americas Mining Corporation in the U.S. District Court for the Southern District of Texas, Brownsville Division. Mr. Beckham says the claims analysis report was prepared by AlixPartners and the valuation report was prepared by Lehman Brothers, Inc. Those reports, however, were subject to confidentiality agreements and thus, were not publicly available, he tells the Court. "The lack of candor by the Debtors' professionals is symptomatic of a 'win at all costs' approach to disenfranchising the Parent, and calls into question the good faith of the Debtors' actions, he asserts. Mr. Beckham asserts that an examiner will probe into whether ASARCO LLC's board of directors breached their fiduciary duties by refusing to substantively respond to the stand-alone reorganization plan, which intends to pay 100% to creditors, that Asarco Inc. proposed in 2007. In addition, the examiner will investigate ASARCO LLC's good faith intention in entering into settlements. Mr. Beckham discloses that ASARCO LLC has agreed to a settlement of its derivative asbestos liabilities for a multiple of its own expert's maximum liability estimate -- without even contesting the issue of its liability under a corporate-veil-piercing theory for the liabilities of its subsidiaries. Mr. Beckham asserts that appointment of an examiner is mandated by Section 1104(c)(2) of the Bankruptcy Code, on the request of a party-in-interest when a debtor's fixed, liquidated unsecured debts, other than debts for goods, services, or taxes, owing to an insider, exceed $5,000,000. ASARCO LLC has stated, in its Chapter 11 Petition, that its has at least $440,000,000 of those debts, he notes. Asarco Inc. thus asks the Court to afford any examiner a broad mandate. The examiner should be empowered to provide an independent investigation of ASARCO LLC's conduct and should be allowed to begin an investigation as soon as possible, Mr. Beckham asserts. About ASARCO Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors seek to extend their exclusive period to file a plan of reorganization to April 11, 2008. (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASARCO LLC: Wants Action Removal Period Extended Until June 13 -------------------------------------------------------------- ASARCO LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Texas to extend, until June 13, 2008, the period wherein they can remove civil actions. The Debtors said they need more time to review their civil lawsuits to determine whether those lawsuits should be removed. They elaborate that they are parties in myriad lawsuits in various states and federal courts and that those lawsuits are complex and may require individual analysis. About ASARCO Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Debtors seek to extend their exclusive period to file a plan of reorganization to April 11, 2008. (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASARCO LLC: Seeks April 11 Extension of Plan-Filing Period ---------------------------------------------------------- ASARCO LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Texas to further extend, until April 11, 2008, the exclusive period wherein they may file a Chapter 11 plan of reorganization. Additionally, the Debtors ask the Court to set June 13, 2008 as the deadline for them to solicit acceptances of that plan. The Debtors' current exclusive plan filing period is set to expire on February 11. The Debtors assert that extension of their exclusive periods is warranted. The Debtors need more time to reach a definitive agreement with two of their largest creditor groups -- the environmental and asbestos claimants -- on the terms of a consensual reorganization plan, and the process and procedures for selecting a Chapter 11 plan sponsor, James R. Prince, Esq., at Baker Botts, L.L.P., in Dallas, Texas, tells the Court. He relates that the Debtors, the Official Committee of Unsecured Creditors for the Asbestos Subsidiary Debtors, Robert C. Pate, the Court-appointed future claims representative, and the U.S. Department of Justice, have started engaging in mediations and negotiations in October 2007 regarding the resolution of environmental and asbestos claims filed against the Debtors. As of Jan. 18, 2008, the Debtors have concluded environmental mediation and submitted settlements with respect to 19 out of the 21 environmental sites they own. Mediation on two sites -- the East Helena and U.S. Section, International Boundary and Water Commission sites -- will continue until the parties have reached a settlement, Mr. Prince says. As for the asbestos claims, Mr. Prince relates that mediation and presentation of expert reports and evidence are underway. The Debtors and the asbestos parties are on the process of entering into a global settlement but that settlement has not been finalized, he says. Judge Elizabeth Magner, the Court-appointed asbestos claims mediator, will continue mediation on the asbestos claims on January 24, 2008. Mr. Prince adds that the Debtors are finalizing the terms of several settlement agreements with claimants alleging toxic tort damages unrelated to asbestos. He further asserts that the Debtors need the deadline extension to continue their litigation relating to avoidance action complaints that if successful, will result in substantial recovery for the Debtors. About ASARCO Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AVNET INC: Signs Definitive Pact Acquiring Azzurri Tech ------------------------------------------------------- Avnet Inc. has entered into a definitive agreement to acquire the U.K.-based distributor Azzurri Technology Ltd. Azzurri is one of Europe's leading design distributors of high technology semiconductors and embedded systems products. The closing of the transaction is subject to customary regulatory approval and other closing conditions. Upon closing, Azzurri will be integrated into Avnet Electronics Marketing EMEA primarily within the Avnet Memec specialist division. Azzurri has been in business for more than ten years and has operations in the UK, Germany, France and Italy. Its annual revenue is approximately $100 million and it employs about 80 people. Azzurri has established a first class reputation for introducing leading technology products into the European electronics market. Azzurri is focused on a small number of franchised suppliers with the prime objective of assisting customers with the design-in of complex semiconductors and sub- system level solutions. Harley Feldberg, president of Avnet Electronics Marketing, commented, "Adding Azzurri's design and engineering expertise to our European team will enhance Avnet Memec's position as the leading pan-European specialist distributor and will benefit both customers and suppliers alike. The acquisition will add new semiconductor suppliers to Avnet Memec's breadth of product offerings in microprocessors, microcontrollers and analog components and expands our presence in Europe's largest markets." "Design-in distribution with exceptional service to our customers and suppliers is the foundation of our company," said Mike Carlucci, Azzurri's president and CEO. "Avnet Memec has a similar approach to the marketplace and that is why the strategic fit is so strong. Both companies have much to gain from working together and merging them will bring many benefits to employees, suppliers and customers," added Mr. Carlucci. With the addition of Mr. Azzurri, Avnet Memec will add talented employees in several important markets and increase its revenue base over 40%. The combined organization's strength in engineering will be complemented by Avnet's world-class supply chain management and logistics capabilities. The transaction is expected to be immediately accretive to earnings, excluding minimal integration charges, and supports Avnet's long-term return on capital goals. The two organizations share the same market approach, have complementary line cards and put design and engineering expertise at the core of their value proposition for customers and suppliers. Steve Haynes, president of Avnet Memec EMEA stated, "I am enthusiastic about this acquisition, not just because it creates an opportunity to broaden our presence within our customer base, but also because Azzurri is the ideal match to Avnet Memec." About Avnet Inc. Based in Phoenix, Arizona, Avnet, Inc. -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in the following countries: Australia, Belgium, China, Germany, Hong Kong, India, Indonesia, Italy, Japan, Malaysia, New Zealand, Philippines, Singapore, and Sweden, Brazil, Mexico and Puerto Rico. * * * Moody's Investors Service affirmed Avnet's Ba1 corporate family long-term debt ratings in March 2007. Moody's said the outlook is positive. BARNERT HOSPITAL: Has Until April 11 to File Chapter 11 Plan ------------------------------------------------------------ The United States Bankruptcy Court for the District of New Jersey further extended Nathan and Miriam Barnert Memorial Hospital Association dba Barnert Hospital's exclusive periods to: a) file a plan from Dec. 13, 2007, until April 11, 2008; and b) solicit acceptances of that plan from Feb. 11, 2008, until June 10, 2008. As reported in the Troubled Company Reporter on Dec. 19, 2007, the Debtor told the Court that it needs additional time to complete negotiations with creditors and prospective buyers in connection with a sale of the Debtor's assets. "If such negotiations come to fruition, the Debtor will require time to prepare and file pleadings to proceed with a court- approved auction and sale of assets," David J. Adler, Esq., at McCarter & English LLP said. In addition, the Debtor told the Court that the sale of substantially all of its assets, which is pending before the Court, is necessary in the formulation of a plan of reorganization as well as in its exit from Chapter 11. Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English, LLP, represents the Debtor in its restructuring efforts. Warren J. Martin Jr., Esq. and John S. Mairo, Esq., at Porzio Bromberg & Newman, P.C., represent the Official Committee of Unsecured Creditors in this case. Donlin Recano & Company Inc. is the Debtor's claims, noticing, and balloting agent. The Debtor's schedules reflect total assets of $46,600,967 and total liabilities of $61,303,505. BIOMET INC: Earn $89 Million in Second Quarter Ended November 30 ---------------------------------------------------------------- Biomet Inc. reported financial results for its second fiscal quarter ended Nov. 30, 2007. The company earned $89 million for the three months ended Nov. 30, 2007, compared to net income of $104.8 million for the same period in 2006. During the second quarter of fiscal year 2008, net sales increased 11% to $578.1 million. Excluding the impact of foreign currency, net sales increased 8% worldwide. Excluding both the impact of foreign currency and instruments, which the Company discontinued selling to distributors in the United States in the third quarter of fiscal 2007, worldwide sales increased 9% during the quarter. As previously announced, on Sept. 25, 2007, Biomet Inc. merged with LVB Acquisition Merger Sub, Inc., a wholly owned subsidiary of LVB Acquisition, Inc. LVB Acquisition, Inc. is indirectly owned by investment partnerships directly or indirectly advised or managed by The Blackstone Group L.P., Goldman Sachs & Co., Kohlberg Kravis Roberts & Co. L.P. and TPG Capital. These financial results have been prepared in a manner that complies, in all material respects, with generally accepted accounting principles in the U.S. with the exception of certain purchase accounting adjustments related to the Merger, including the effects of the merger-related debt and associated interest expense. The company will reflect the purchase accounting adjustments related to the Merger by the end of fiscal year 2008. During the second quarter of fiscal year 2008, the company incurred special charges (pre-tax) of 16.6 million, approximately half of which related to the previously announced operational improvement program. Reported operating income for the second quarter of fiscal year 2008 was $145.7 million compared to operating income of $155.1 million for the second quarter of fiscal year 2007. Adjusted operating income was $162.3 million for the second quarter of fiscal year 2008 compared to $159.1 million for the second quarter of fiscal year 2007. Adjusted net income for the second quarter of fiscal year 2008 was $99.1 million compared to adjusted net income for the second quarter of fiscal year 2007 of US$107.5 million. Adjusted earnings before interest, taxes, depreciation and amortization for the second quarter of fiscal year 2008 was $194.4 million as compared to $182.5 million in the second quarter of fiscal year 2007. Biomet's President and Chief Executive Officer Jeffrey R. Binder stated, "The Company's reconstructive sales category performed very well again this quarter with accelerated growth continuing across various product groups within this category, particularly for knees. In addition, sales of craniomaxillofacial fixation and arthroscopy products were also strong during the second quarter." Mr. Binder added, "We continue to work to strengthen our trauma and spine business. We've built a strong foundation for change and continue to believe we can reach our goal of producing positive revenue growth within the Biomet Trauma and Biomet Spine business during the first half of fiscal year 2009." About Biomet Headquartered in Warsaw, Indiana, Biomet Inc. (NASDAQ: BMET) and its subsidiaries design, manufacture, and market products used primarily by musculoskeletal medical specialists in both surgical and non-surgical therapy. Biomet's product portfolio encompasses reconstructive products, fixation products, spinal products, and other products. Biomet and its subsidiaries currently distribute products in more than 100 countries, including the Netherlands, Argentina and Korea. * * * As reported in the Troubled Company Reporter on Sept. 27, 2007, Moody's Investors Service assigned final debt ratings to Biomet Inc. (B2 Corporate Family Rating) in conjunction with the close of the leveraged buy-out transaction by a consortium of equity sponsors. The rating outlook is negative. BASIS YIELD: Judge Gerber Denies Recognition Under Chapter 15 ------------------------------------------------------------- The Hon. Robert Gerber of the U.S. Bankruptcy Court for the Southern District of New York denies the summary judgment request of Hugh Dickinson, Stephen John Akers, and Paul Andrew Billingham, as joint official liquidators of Basis Yield Alpha Fund (Master), for recognition of the company's Cayman Islands liquidation proceeding as a "foreign main proceeding," under Section 1517(b)(1) of the U.S. Bankruptcy Code or as a "foreign nonmain proceeding" under Section 1517(b)(2). Judge Gerber has previously ruled that any hearing on the Liquidators' Chapter 15 Petition will be an evidentiary hearing. Judge Gerber required the Liquidators to provide relevant evidence to make factual findings relevant to determining whether the Cayman Islands were Basis Yield's "center of main interest," or whether Basis Yield maintained an establishment there. The Liquidators, however, have argued that, with no objections filed, there is no evidence which contradicts that Basis Yield's COMI is the Cayman Islands. In their Summary Judgment Motion, the Liquidators maintained that, because their is no evidence to the contrary, under Section 1516(a), they are entitled to a presumption that Cayman Islands is Basis Yield's COMI. In the Chapter 15 Petition, the Liquidators have stated that: * Basis Yield is registered in the Cayman Islands and maintains its registered office there; * its only "investors," are two feeder funds, which are both domiciled in the Cayman Islands; * Fortis Prime Fund Solutions (Cayman) Ltd., a Cayman Islands company, serves as administrator to both Basis Yield and each of its feeder funds; * Pac-Rim Investments, Ltd., also a Cayman Islands company, is Basis Yield's investment manager; * Basis Yield's pre-Chapter 15 petition attorneys and auditor, Walkers and Ernst & Young, are Cayman Islands entities; and * the hedge fund's financial books and records, including the investor register, are currently located in the Cayman Islands. In a 28-page memorandum, signed January 16, 2008, Judge Gerber says none of the papers filed by the Liquidators have addressed, in any meaningful way, any of the factors that would support recognition of Basis Yield's Cayman Islands as a foreign main proceeding. Judge Gerber notes that the Liquidators have been "strikingly silent" as to the nature or extent of any business activity Basis Yield conducts in the Cayman Islands. He adds that they were silent, among other things, as to whether Basis Yield staffed any employees or managers in the Cayman Islands; whether any of its assets were in the Cayman Islands; and the location from which Basis Yield's funds were in fact managed. "The Liquidators' conspicuous failure to try to establish, or even plead, facts supporting the existence of a main proceeding, even after the submission of the comments of one of its creditors, Citigroup Global Markets Ltd., makes any reasonable observer wonder why," Judge Gerber says. Judge Gerber further notes that the Liquidators' Summary Judgment Motion raises the issues as to: (1) whether failure to object by stakeholders divest the Court of the power to make its own determination as to whether the requirements of Section 1517 have been satisfied; and (2) whether a presumption embodied in Section 1516 precludes the Court from considering the actual facts -- under circumstances where the Liquidators's showing has been strikingly silent and where the few facts that are known raise issues as to their position and make further inquiry appropriate. Judge Gerber states that he cannot endorse the Liquidators' reliance on Section 1516(c) in their argument that they are entitled to a presumption that Basis Yield's COMI is in Cayman Islands for two reasons: (a) there is enough "evidence to the contrary" -- organization of Basis Yield under a Cayman Islands stature that raises red flags as to whether that jurisdiction could be the fund's COMI -- to decline use of a Section 1516 presumption as a substitute for actual evidence; and (b) the Court has the power to satisfy itself that the requirements for recognition under Section 1517 have been satisfied, and has a right like any other federal court to inquire under Rule 614 of the U.S. Federal Rules of Evidence. Judge Gerber concurs with the observations of Judge Lifland in In re Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., 374 B.R. 122, 130 (Bankr. S.D.N.Y. 2007), that recognition under Section 1517 is not a "rubber stamp exercise." Rather, consistent with Judge Lifland's determination in Bear Stearns' case and the views of the drafters of Chapter 15 and the United Nations Commission on International Trade Law on which chapter 15 was based, Judge Gerber rules that a court engaging in a recognition determination under Section 1517 is not bound by parties' failure to object. Judge Gerber says he needs to consider all relevant facts, including facts that are not yet presented before granting Chapter 15 Petition. He further concludes that Basis Yield is not yet entitled to Chapter 15 recognition as a matter of law, but makes clear that he does not, in any way, rule out the possibility that facts could be adduced at an evidentiary hearing sufficient to entitle Basis Yield recognition under Chapter 15. The Court will hold the evidentiary hearing on the Chapter 15 Recognition Motion at the earliest practical time consistent with the requirements of Section 1517(c). The Liquidators' evidentiary presentations will be made in accordance with the Case Management Order, dated September 5, 2007, subject to an adjustment of time with respect to the submission of direct testimony affidavits, which will be submitted early enough to permit the Court to advise the Liquidators of any desire to call witnesses whose testimony has not already been set forth by affidavit. Judge Gerber also reinstates duties under the Factual Matters Order, dated September 12, 2007. About Basis Yield Basis Yield Alpha Fund (Master) is a Cayman Islands mutual fund. It operates as a master-feeder structure that allows investors' funds to be channeled through two companies operating in a single jurisdiction to a "master" company operating in the same jurisdiction. These two feeder funds are Basis Yield Alpha Fund (US), a US feeder fund for US taxable investors, and Basis Yield Alpha Fund, a non-US feeder for all other investors. On Aug. 29, 2007, Hugh Dickson, Stephen John Akers, and Paul Andrew Billingham filed a chapter 15 petition for Basis Yield (Bankr. S.D.N.Y. Case No. 07-12762). Karen Dine, Esq. at Pillsbury Winthrop Shaw Pittman LLP represents the petitioners. (Basis Yield Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). BEAR STEARNS: Fitch Holds 'B-' Rating on $10.8MM Class K Certs. --------------------------------------------------------------- Fitch Ratings has affirmed Bear Stearns Commercial Mortgage Securities, commercial mortgage pass-through certificates, series 1999-WF2, as: -- $501.7 million class A-2 at 'AAA'; -- Interest only class X at 'AAA'; -- $43.2 million class B at 'AAA'; -- $43.2 million class C at 'AAA'; -- $10.8 million class D at 'AAA'; -- $27 million class E at 'AA+'; -- $10.8 million class F at 'AA'; -- $21.6 million class G at 'A-'; -- $16.2 million class H at 'BBB-'; -- $8.1 million class I at 'BB'; -- $9.5 million class J at 'B+'; -- $10.8 million class K at 'B-'. The $2.4 million class L remains 'C/DR5'. Class A-1 has paid in full. The affirmations reflect stable performance of the transaction. As of the December 2007 distribution date, the pool's aggregate principal balance has been reduced 34.7%, to $705.4 million from $1.08 billion at issuance. Fifty-six loans (25.4%) have defeased, including three of the 10 largest loans (5.6%). Currently, there are no delinquent or specially serviced loans. There are 135 non-defeased loans (55.2%) are scheduled to mature within the next 24 months, of which 130 reported year-end 2006 financial information. The loans have interest rates ranging from 5.70% to 8.99% and reported a year-end 2006 weighted average debt service coverage ratio of 2.04 times. BEAR STEARNS: Limited Paydown Cues Fitch to Affirm Ratings ---------------------------------------------------------- Fitch has affirmed Bear Stearns Commercial Mortgage Securities Trust's commercial mortgage pass-through certificates, series 2006-PWR14, as: -- $102.4 million class A-1 at 'AAA'; -- $170.7 million class A-2 at 'AAA'; -- $68.9 million class A-3 at 'AAA'; -- $125.1 million class A-AB at 'AAA'; -- $950.9 million class A-4 at 'AAA'; -- $296.9 million class A-1A at 'AAA'; -- $246.8 million class A-M at 'AAA'; -- $222.1 million class A-J at 'AAA'; -- Interest-only class X-1 at 'AAA'; -- Interest-only class X-2 at 'AAA'; -- Interest-only class X-W at 'AAA'; -- $46.3 million class B at 'AA'; -- $24.7 million class C at 'AA-'; -- $37.0 million class D at 'A'; -- $21.6 million class E at 'A-'; -- $24.7 million class F at 'BBB+'; -- $24.7 million class G at 'BBB'; -- $24.7 million class H at 'BBB-'; -- $9.3 million class J at 'BB+'; -- $6.2 million class K at 'BB'; -- $9.3 million class L at 'BB-'; -- $3.1 million class M at 'B+'; -- $6.2 million class N at 'B'; -- $6.2 million class O at 'B-'. Fitch does not rate class P. The affirmations are due to the pool's stable performance and limited paydown since issuance. As of the January 2008 distribution date, the pool's aggregate principal balance has decreased 0.52% to $2.46 billion from $2.47 billion at issuance. There have been no specially serviced or delinquent loans since issuance. There are nine shadow rated loans. South Bay Galleria (4.02%), 750 Lexington Avenue (3.05%), Plaza Fiesta (1.30%), Northgate Plaza Retirement (0.41%), Tumwater Industrial Facility (0.38%), Calaveras Shopping Center (0.36%), 700-760 First Street (0.35%), Island House Retirement Apartments (0.27%), and Residence Inn Louisville Airport (0.25%). Fitch reviewed YE06 operating statement analysis reports and other performance information provided by the master servicers. Occupancy was in-line or improved from issuance. Occupancy as of 2Q07 for Tumwater Industrial Facility, Island House Retirement Apartments, Northgate Plaza Retirement Apartments, and Residence Inn Louisville Airport was 100%, 90.0%, 84.3%, and 69.1%, respectively. Occupancy as of 3Q07 for 700-760 First Street, Plaza Fiesta, South Bay Galleria, and 750 Lexington Avenue was 100%, 100%, 99.4%, and 95.0%. For YE07, Calaveras Shopping Center maintained 100% occupancy. BENCHMARK ELECTRONICS: Earns $22 Million in 2007 Third Quarter -------------------------------------------------------------- Benchmark Electronics Inc. reported net income of $22.0 million for the third quarter ended Sept. 30, 2007, which included a discrete tax benefit of $6.0 million relating to a previously closed facility. In the comparable period of 2006, net income was $29.3 million. Sales were $672.6 million for the quarter ended Sept. 30, 2007, compared to $769.5 million for the same quarter in the prior year. Excluding restructuring charges, integration costs, amortization of intangibles, the impact of stock-based compensation costs and the tax benefit, the company would have reported net income of $17.0 million in the third quarter of 2007. Excluding restructuring charges and the impact of stock-based compensation costs, the company would have reported net income of $30.0 million in the third quarter of 2006. "We are clearly disappointed with our revenue performance for the third quarter," said Cary T. Fu, the company's chief executive officer. "However, as our fourth quarter guidance reflects, we continue to believe that Benchmark is well positioned for the future based on our operating focus and execution, new program bookings and continued strong cash flows from operations." Looking forward, sales for the fourth quarter of 2007 are expected to be between $700.0 million and $740.0 million. Diluted earnings per share for the fourth quarter, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense, are expected to be between $0.32 and $0.38. Operating margin for the third quarter was 2.2% on a GAAP basis and was 2.6%, excluding restructuring charges, integration costs, amortization of intangibles and the impact of stock-based compensation expense. Selling, general and administrative expenses for the third quarter were $22.0 million, a decrease of 9.2% from the second quarter of 2007. Cash flows provided by operating activities for the third quarter were approximately $66.0 million. Cash and short-term investments balance was $379.0 million at Sept. 30, 2007. Total debt outstanding at Sept. 30, 2007, was $12.8 million. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed $1.78 billion in total assets, $460.1 million in total liabilities, and $1.32 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?2736 About Benchmark Electronics Headquartered in Angleton, Texas, Benchmark Electronics Inc. (NYSE: BHE) -- http://www.bench.com/-- is in the business of manufacturing electronics and provides its services to original equipment manufacturers of computers and related products for business enterprises, medical devices, industrial control equipment, testing and instrumentation products, and telecommunication equipment. * * * As reported in the Troubled Company Reporter on Jan. 21, 2008, Moody's Investors Service assigned a Ba2 (LGD-3, 39%) rating to Benchmark Electronics Inc.'s new 5-year $100 million senior secured revolving credit facility due 2012 and affirmed the company's Ba3 corporate family rating. The rating outlook is stable. BOMBARDIER INC: $1BB Debt Redemption Cues Fitch to Lift Ratings --------------------------------------------------------------- Fitch Ratings has upgraded Bombardier Inc.'s ratings and removed the ratings from Rating Watch Positive following BBD's early redemption of approximately $1 billion of debt. The Rating Outlook is Positive. Fitch's rating actions are summarized as: Bombardier Inc. -- Issuer Default Rating to 'BB' from 'BB-'; -- Senior unsecured debt to 'BB' from 'BB-'; -- Preferred stock to 'B+' from 'B'. In addition, Fitch has upgraded the IDR and senior unsecured debt rating for Bombardier Capital Inc. to 'BB' from 'BB-' and withdrawn the ratings. BC has retired nearly all of its remaining debt. BC's ratings were linked to those of BBD due to the existence of a support agreement and demonstrated support by the parent. The ratings for BBD affect debt and preferred stock that totaled approximately $4.6 billion on a pro forma basis as of Oct. 31, 2007. The rating upgrades reflect the completion of BBD's plan, announced in November 2007, to reduce debt by approximately $1 billion by the end of its fiscal year ending Jan. 31, 2008. Fitch estimates that BBD's pro forma debt/EBITDA at Oct. 31, 2007 declined to 3.2 times, compared to nearly 4x as reported. The ratings and Positive Outlook are supported by continuing expectations for margin improvement, sales growth, and solid cash generation. Strong orders in all of BBD's businesses, together with a large backlog, support projections for ongoing progress in BBD's operating performance. These factors could potentially lead to further long-term improvement in BBD's credit profile. Additional factors supporting the ratings include BBD's diversification, its leading market positions, the health of the business jet and turboprop markets, BBD's cash balances, its debt maturity schedule, BT's successful restructuring, and a large backlog. Rating concerns include relatively low operating margins; business jet market cyclicality; the pension plan deficit; the impact of exchange rate volatility on margins, financial results, and planning; and several RJ concerns, including uncertainty regarding development of new aircraft models and contingent obligations related to past aircraft sales, although these contingent obligations are spread out over time and are not a near-term concern. BBD's eventual decision about its potential entry into the mainline aircraft market could have an impact on its financial and operating profile. Even after the recent use of cash to reduce debt, BBD maintains strong cash balances that are sufficient to support its liquidity requirements. The company's $3.6 billion of unrestricted cash balances at Oct. 31, 2007 would be reduced on a pro forma basis by the recent debt repurchase. However, cash balances do not include $1.3 billion of restricted cash related to a letter of credit facility. In addition, the company can be expected to support its cash position from operating cash flow that contributed to an increase of roughly $400 million in BBD's net cash balances during the fiscal third quarter. The debt redeemed yesterday by BBD included approximately $407 million of Euro-denominated 5.75% notes due in February 2008 and $619 million of BC's Sterling-denominated 6.75% notes due in May 2009. BBD also planned to repurchase $26 million of other long-term debt. The repurchased debt amounted to approximately 20% of BBD's consolidated debt reported at Oct. 31, 2007. BRUTI ASSOCIATES: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bruti Associates Ltd. 21146 Washington Parkway Frankfort, IL 60423 Bankruptcy Case No.: 08-01064 Type of Business: The Debtor buys and sells realty property. Chapter 11 Petition Date: January 18, 2008 Court: Northern District of Illinois (Chicago) Judge: Pamela S. Hollis Debtors' Counsel: Douglas C. Giese, Esq., and Lewis J Todhunter, Esq. Defrees & Fiske LLC 200 S. Michigan Avenue Chicago, IL 60604 Tel: (312) 372-4000 Ext. 229 Fax: (312) 939-5617 http://www.defrees.com/ Estimated Assets: Less than $50,000 Estimated Debts: $10 million to $50 million Consolidated Debtors' List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Shore Development Co. $2,780,769 c/o S Cooper Cooper Storm & Piscopo 117 S Second St Geneva, IL 60134 First United Bank $600,000 7626 W. Lincoln Highway Frankfort, IL 60423 First Community Bank vehicle; value of $575,545 P.O. Box 457 security: $5,000 Beecher, IL 60401-0457 Charles P. Bruti $191,782 Joseph A. Schudt & $160,000 Bruti Associates Profit $130,000 Trevarthan Landscaping $101,000 Barbara J. Bruti $70,000 David J Martin $60,000 G & M Masonry Construction $33,847 Dresden Concrete $29,497 Bailey's Carpet $26,724 V & L Plumbing Co. $26,521 Tidal Construction Services $22,512 Excel Electric Inc. $17,490 Advanta Bank $15,740 James J Johnson $18,939 Wilson Heating & Air $17,278 MT Carmel Lime $16,000 BUFFETS HOLDINGS: Board Vice-Chairman Roe H. Hatlen Resigns ----------------------------------------------------------- Buffets Holdings Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that on Jan. 11, 2008, Roe H. Hatlen, vice-chairman of the company's Board of Directors, notified the company of his decision to resign from the company's Board and the Board of Directors of subsidiary Buffets Inc., effective immediately. Mr. Hatlen was a member of the company's Audit Committee. Mr. Hatlen will continue to serve as an advisor to the company under the terms of an advisory agreement he previously entered into with the company, which agreement was amended in connection with his resignation to: (i) acknowledge that the agreement may be terminated by either party upon 30 days prior written notice; and (ii) limit the scope of services to be provided by Mr. Hatlen under the agreement to those that he is requested to perform by the company's Chief Executive Officer or such other officer designated by the Chairman of the company's Board of Directors. About Buffets Holdings Headquartered in Eagan, Minnesota, Buffets Holdings Inc., is the holding company of Buffets Inc. -- http://www.buffet.com/-- which operates 626 restaurants in 39 states, comprised of 615 steak-buffet restaurants and eleven Tahoe Joe's Famous Steakhouse(R) restaurants, and franchises sixteen steak-buffet restaurants in six states. The restaurants are principally operated under the Old Country Buffet(R), HomeTown Buffet(R), Ryan's(R) and Fire Mountain(R) brands. Buffets employs approximately 37,000 team members and serves approximately 200 million customers annually. * * * As reported in the Troubled Company Reporter on Jan. 15, 2008, Standard & Poor's Ratings Services said its ratings on Buffets Holdings Inc. (Buffets; D/--/--) are unaffected by the company's announcement that it reached a forbearance agreement with lenders of its senior secured credit facility. These lenders have effectively agreed to waive their default rights during the forbearance period (which will likely end on April 2, 2008, unless the company breaches certain provisions of the agreement). The agreement stipulates that the company cannot make any voluntary payments to its senior noteholders and also specifies that on or before Jan. 31, 2008, the company will present to its lenders reasonably detailed terms of its restructuring plan. These conditions make clear that Buffets will not pay interest due Jan. 2, 2008, to its senior noteholders by Jan. 31, 2008 (the end of the cure period). The rating on the company's senior secured credit facility is 'CC', the highest rating for a security with a 'D' corporate credit rating that has not filed for bankruptcy protection. C AND C PROP: Court Approves Adequacy of Disclosure Statement ------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of Mississippi approved the adequacy of C and C Properties Inc. and its debtor-affiliates' Joint Disclosure Statement describing their Joint Chapter 11 Plan of Reorganization. As reported in the Troubled Company Reporter on Dec. 14, 2007, the Debtors' Plan contemplates the liquidation of their assets, including the sale of four convenience stores and some of their affiliates' assets. The Debtors have escrowed the sale proceeds and will distribute to their valid creditors. Treatment of Claims Under the Plan, all administrative claims filed against the Debtors will be paid in full. Construction Liens Claim of Commercial Construction and Maintenance, totaling $38,419, will be paid in full on the plan's confirmation date. General Unsecured Claims will also be paid in full after the Court enter an order confirming the Debtors' joint plan. Equity security holders of the Debtors, COC Holdings Inc. and Robert W. Carleton III, will have their ownership interest extinguished in accordance with the terms and provision of the proposed joint plan. Harold G. Carleton and Robert W. Carleton Jr. have been classified as insiders of the Debtors. Robert Carleton III, Harold Carleton and R. W. Carleton Jr., will be entitled to receive a pro rata share, to the extent possible, from the remaining proceeds after all valid claims have been paid. Secured Claims Professional Convenience Services Inc. and GOC Ltd. will be resolved pursuant to the terms and provisions of a motion for authority to settle and compromise disputed claim which is pending at the Court. If approved, the motion will be incorporated into the Debtors' joint disclosure statement and proposed plan. Citizens Bank of Philadelphia's claim has been satisfied in accordance with the sale of the Debtors' assets. Madison County Bank will be paid from the sale and liquidation of the M&K Convenience Store. The remaining balance of the Madison County's secured claim approximately $192,000 is secured by a certain property owned by the Debtors. Accordingly, the Debtors will transfer that certain property to Robert Carleton III who will assume the indebtedness with the bank. The Debtors say that New County Bank's secured claim comprised of a 2003 Ford F-350 truck that has a balance due of $7,878 and a $71,007 loan secured by certain convenience store equipment. Under the Plan, the Debtors will continue to pay monthly installments on the Ford truck and will seek a purchaser for the collateral to liquidate in order to pay the balance in full due to Newton County. At the Debtors' discretion, the loan will be paid in full, either, monthly or lump sum payment, if no purchaser is secured. The Debtors further say that Newton County will entitled to receive approximately $52,000 from the sale of that certain convenience store equipment. A portion of Ford Motor Credit Company's secured claims have been paid in accordance with the Court order issued Oct. 22, 2007, on Ford Motor's request to compel assumption or rejection of the executory lease contract and releif from automatice stay. Priority Claims Mississippi State Tax Commission holds a $32,000 claim in the Debtors' case for December and January petroleum taxes. MTSC has a $631,727 proof of claim, which appears to duplicate the petroleum taxes due, according to the Debtors. Additionally, MSTC has filed a $20,980 claim for sales tax against the Debtors. The Debtors tells the Court that they will object to these claims if the Debtors and MSTC cannot reach an agreement as to the proper amount of MSTC's asserted claims. Internal Revenue Service's claims will be paid in full on the plan confirmation date. The Debtors say that Majority of the Ad Valorem Tax Claims for 2006 have been paid as part of the closing of the various sales of real property but approximately $12,000 is still due to various tax authorities. About C and C Properties Based in Union, Mississippi, C and C Properties, Inc. develops real estate properties. The company filed for Chapter 11 protection on January 24, 2007 (Bankr. S.D. Miss. Case No. 07-50082). Jeffery Kyle Tyree, Esq. and Melanie T. Vardaman, Esq., at Harris Jernigan & Geno, PPLC, represent the Debtor in its restructuring efforts. The U.S. Trustee for Region 5 has not appointed an Official Committee of Unsecured Creditors in the Debtor's bankruptcy proceedings. In its schedules filed with the Court, the Debtor disclosed total assets of $12,500,000 and total debts of $10,016,965. C-BASS MORTGAGE: S&P Junks Ratings on Four Certificate Classes -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on eight classes of asset-backed pass-through certificates from four C-BASS Mortgage Loan Asset-Backed Certificates transactions. Two of the classes were downgraded to speculative-grade from investment-grade. Concurrently, S&P affirmed its ratings on the remaining classes of asset-backed pass-through certificates from these four series. The current performance data of the four series are: Performance Data Cum. realized Severe Series losses (i) delinq. (ii) ------ ------------- ------------ 2002-CB1 6.50% 24.61% 2002-CB2 3.55% 15.60% 2003-RP1 10.89% 36.75% 2005-RP1 3.54% 25.68% (i) As a percentage of original pool balance. (ii) As a percentage of current pool balance. Current pool bal. Months Series (percentage of orig. pool bal.) seasoned ------ ------------------------------- -------- 2002-CB1 9.58% 69 2002-CB2 10.65% 67 2003-RP1 21.45% 53 2005-RP1 42.17% 30 The downgrades reflect adverse collateral performance that has caused monthly losses to exceed excess interest. This trend has led to the deterioration of overcollateralization (O/C) and the credit support derived from subordination. As shown in the performance data above, cumulative realized losses as a percentage of original pool balances, ranged from 3.54% (series 2005-RP1) to 10.89% (series 2003-RP1). As of the January 2008 remittance period, O/C was below its target for all four series. The delinquency pipeline in many of the transactions strongly suggests that the trend of monthly losses exceeding excess interest will continue, further compromising credit support. Severe delinquencies (90-plus days, foreclosures, and REOs) for the downgraded transactions ranged from 15.60% (series 2002-CB2) to 36.75% (series 2003-RP1). S&P affirmed its ratings on the remaining classes based on loss coverage percentages that are sufficient to maintain the current ratings despite the negative trends in the underlying collateral of many of the deals. Subordination, O/C, and excess spread provide credit support for all of the affected deals. The collateral for these transactions primarily consists of reperforming, adjustable- and fixed-rate mortgage loans secured by first liens on one- to four-family residential properties. Ratings Lowered C-BASS Mortgage Loan Asset-Backed Certificates Mortgage loan asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2002-CB2 M-2 BBB AA 2002-CB2 B-1 CCC B 2002-CB2 B-2 CCC B 2003-RP1 M-2 BBB- A 2003-RP1 B-1 B BBB- 2005-RP1 B-2 BB BBB Ratings Lowered and Removed From CreditWatch Negative C-BASS Mortgage Loan Asset-Backed Certificates Mortgage loan asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2002-CB1 B-2 CCC B/Watch Neg 2003-RP1 B-2 CCC BB/Watch Neg Ratings Affirmed C-BASS Mortgage Loan Asset-Backed Certificates Mortgage loan asset-backed certificates Series Class Rating ------ ----- ------ 2002-CB1 M-2 AAA 2002-CB1 B-1 BBB 2002-CB2 A-1, A-2, M-1 AAA 2003-RP1 A AAA 2003-RP1 M-1 AA 2005-RP1 AF-1A, AF-1B, AF-2 AAA 2005-RP1 AF-3, AV AAA 2005-RP1 M-1 AA 2005-RP1 M-2 A 2005-RP1 M-3 A- 2005-RP1 B-1 BBB+ CABELA'S CREDIT: Fitch Rates $11.25MM Class D Notes at BB+ ---------------------------------------------------------- Fitch has rated these Cabela's Credit Card Master Note Trust, series 2008-I asset-backed notes: -- $202,650,000 Class A-1 Fixed Rate Notes 'AAA'; -- $229,850,000 Class A-2 Floating Rate Notes 'AAA'; -- $29,000,000 Class B-1 Fixed Rate Notes 'A+'; -- $6,000,000 Class B-2 Floating Rate Notes 'A+'; -- $21,250,000 Class C-2 Floating Rate Notes 'BBB+'; -- $11,250,000 Class D Floating Rate Notes 'BB+'. CARRINGTON MORTGAGE: S&P Junks Ratings on Two Classes from 'B' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 13 classes of mortgage-backed securities issued by four Carrington Mortgage Loan Trust transactions. In addition, S&P affirmed its ratings on the remaining classes from these series. The downgrades reflect credit enhancement levels that are insufficient to support the current ratings given the level of severe delinquencies (90-plus days, foreclosures, and REOs) for each of the transactions. The transactions have sizeable loan amounts that are severely delinquent, which suggests that performance trends are likely to deteriorate. The severe delinquencies relative to overcollateralization (O/C) are (series: severe delinquency amount {$}; % of current pool balance; multiple of O/C): -- 2004-NC2: $6.929 million; 16.84%; 2.58x; -- 2005-FRE1: $133.013 million; 31.80%; 6.64x; -- 2005-NC2: $48.029 million; 30.18%; 2.22x; and -- 2005-OPT2: $112.825 million; 29.15%; 2.81x. These severely delinquent loan amounts have increased significantly over year-ago levels (series: multiple of December 2006 amount): -- 2004-NC2: 1.14x; -- 2005-FRE1: 2.40x; -- 2005-NC2: 3.31x; and -- 2005-OPT2: 1.39x. As of the December 2007 remittance report, cumulative realized losses for the deals were (series: realized losses {$}; % of original pool balance): -- 2004-NC2: $1,434,769; 0.48%; -- 2005-FRE1: $6,617,699; 0.73%; -- 2005-NC2: $2,859,690; 0.40%; and -- 2005-OPT2: $11,527,167; 0.77%. Losses for the transactions have been relatively moderate to date; however, the increases in delinquencies indicate that current performance trends may further compromise credit support for the downgraded classes. Credit support for these transactions is provided through a combination of subordination, excess interest, and O/C. All of the transactions have "NC," "OPT," or "FRE" suffixes, indicating that the loans were originated by New Century Mortgage Corp., Option One Mortgage Corp., and Fremont Investment & Loan, respectively. At closing, collateral for the transactions consisted of a mix of adjustable- and fixed-rate, interest-only and fully amortizing, first- and second-lien subprime mortgage loans. Those deals with IO loans had IO periods, which initially ranged from 36 to 84 months. Ratings Lowered Carrington Mortgage Loan Trust Mortgage-backed securities Rating ------ Series Class To From ------ ----- -- ---- 2004-NC2 M-5 BBB- BBB 2004-NC2 M-6 BB BBB- 2005-FRE1 M-9 BBB- BBB 2005-FRE1 M-10 B+ BBB 2005-FRE1 M-11 B BB 2005-FRE1 M-12 CCC B 2005-FRE1 M-13 CCC B 2005-NC2 M-8 BBB- BBB 2005-NC2 M-9 B BBB- 2005-OPT2 M-6 BBB+ A- 2005-OPT2 M-7 BB+ BBB+ 2005-OPT2 M-8 BB- BBB 2005-OPT2 M-9 B BB Ratings Affirmed Carrington Mortgage Loan Trust Mortgage-backed securities Series Class Rating ------ ----- ------ 2004-NC2 M-1 AA 2004-NC2 M-2 A 2004-NC2 M-3 A- 2004-NC2 M-4 BBB+ 2005-FRE1 A-3, A-4, A-5, A-6 AAA 2005-FRE1 M-1 AA+ 2005-FRE1 M-2 AA 2005-FRE1 M-3 AA- 2005-FRE1 M-4 A+ 2005-FRE1 M-5, M-6 A 2005-FRE1 M-7 A- 2005-FRE1 M-8 BBB+ 2005-NC2 M-1 AA+ 2005-NC2 M-2, M-3 AA 2005-NC2 M-4 A+ 2005-NC2 M-5 A 2005-NC2 M-6 A- 2005-NC2 M-7 BBB+ 2005-OPT2 A-1D AAA 2005-OPT2 M-1, M-2 AA 2005-OPT2 M-3, M-4 A+ 2005-OPT2 M-5 A CHEC LOAN: S&P Junks Rating on Class B-2 Securities From 'BB' ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on four classes of mortgage-backed securities issued by CHEC Loan Trust's series 2004-1 and 2004-2. Furthermore, S&P placed its rating on one additional class on CreditWatch with negative implications and affirmed its ratings on the remaining classes from these transactions. The downgrades reflect credit enhancement levels that are insufficient to support the current ratings given the level of severe delinquencies (90-plus days, foreclosures, and REOs) and accelerating losses for each of the transactions. The transactions have sizable loan amounts that are severely delinquent, which suggests that performance is likely to deteriorate. The severe delinquencies relative to overcollateralization (O/C) are (series: severe delinquency amount {$}; percentage of current pool balance; multiple of O/C): -- 2004-1: $12.811 million; 17.01%; 9.91x; and -- 2004-2: $18.320 million; 21.69%; 4.93x. Both transactions have severely delinquent loan amounts that are 1%-2% higher than year-ago levels. Average losses for both transactions have increased significantly over the same time period (series: three-month average {$}; six-month average {$}; 12-month average {$}): -- 2004-1: $237,300; $168,226; $161,596; and -- 2004-2: $285,961; $240,028; $195,349. As of the December 2007 remittance report, cumulative realized losses for the deals were (series: realized loss {$}; percentage of original pool balance): -- 2004-1: $2,708,618; 0.88%; and -- 2004-2: $2,966,234; 0.96%. Series 2004-1 and 2004-2 have started to step down over the past several months, with 41 and 38 months of seasoning, respectively. This reduction in credit support, in combination with accelerating losses and consistently significant severely delinquent loan amounts, indicate that credit support will continue to deteriorate going forward. The placement of the rating on class M-6 from series 2004-2 on CreditWatch with negative implications reflects the possibility for deterioration of the subordination that provides support for this class due to the deal stepping down. Standard & Poor's will continue to closely monitor the performance of class M-6 from series 2004-2. If credit support for class M-6 is adequate to support the current rating, S&P will affirm the rating and remove it from CreditWatch. Conversely, if credit support continues to deteriorate to a point at which it is insufficient to maintain the current rating, S&P will take further negative rating action. Credit support for these transactions is provided through a combination of subordination, excess interest, and O/C. The collateral for both transactions consists primarily of fixed- and adjustable-rate, fully amortizing, and balloon mortgage loans secured by first liens on one- to four-family residential properties. Ratings Lowered CHEC Loan Trust Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2004-1 B-1 B+ BB+ 2004-1 B-2 CCC BB 2004-2 M-7 BB BBB 2004-2 M-8 B BBB- Rating Placed on CreditWatch Negative CHEC Loan Trust Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2004-2 M-6 BBB+/Watch Neg BBB+ Ratings Affirmed CHEC Loan Trust Asset-backed certificates Series Class Rating ------ ----- ------ 2004-1 A-3 AAA 2004-1 M-1 AA+ 2004-1 M-2 AA 2004-1 M-3 AA- 2004-1 M-4 A+ 2004-1 M-5 A 2004-1 M-6 A- 2004-1 M-7 BBB+ 2004-1 M-8 BBB 2004-1 M-9 BBB- 2004-2 A-3 AAA 2004-2 M-1 AA+ 2004-2 M-2 AA 2004-2 M-3 AA- 2004-2 M-4 A 2004-2 M-5 A- CLAYMONT STEEL: Evraz Completes Tender Offer for Common Stock ------------------------------------------------------------- Claymont Steel Holdings Inc. disclosed that the cash tender offer of Evraz Group S.A.'s subsidiary, Titan Acquisition Sub Inc., to purchase all outstanding shares of common stock of Claymont Steel, which expired at midnight, New York City time, on Jan. 16, 2008, has been completed. Evraz and Titan Acquisition Sub Inc. have been advised by Mellon Investor Services LLC, the depositary for the tender offer, that as of the expiration of the offer, stockholders of Claymont Steel had tendered into the tender offer 16,415,722 shares of Claymont Steel common stock, excluding shares delivered pursuant to notices of guaranteed delivery, representing approximately 93.4% of the outstanding shares of common stock of Claymont Steel. Evraz has accepted for payment all shares of Claymont Steel common stock that were validly tendered during the offer period. In accordance with the merger agreement, Evraz now intends to effect a short-form merger. Pursuant to the merger agreement, each share of Claymont Steel common stock not accepted for payment in the tender offer, other than those as to which holders validly exercise dissenters' rights and those held by Evraz or Claymont Steel or their respective subsidiaries, will be converted in the merger into the right to receive $23.50 in cash, without interest thereon and less any applicable stock transfer taxes and withholding taxes. This is the same price per share paid during the tender offer. Evraz intends to complete the short-form merger in the next several days. About Evraz Headquartered in Luxembourg, Evraz Group S.A. (LSE:EVR) -- http://www.evraz.com/-- manufactures and distributes steel and related products. In addition, the Company owns and operates certain mining assets. Its steel production and mining facilities are mainly located in the Russian Federation. It operates three steel mills in Russia, one mill in the Sverdlovsk region and two mills in the Kemerovo region. About Claymont Steel Headquartered in Claymont, Delaware, Claymont Steel Inc. -- http://www.claymontsteel.com/-- fka CitiSteel USA Inc., mills carbon steel plate. It services all major plate markets including service centers, bridge fabricators, railcar manufacturers, heavy construction machinery and material handling equipment, mining equipment, storage tanks, pressure vessel, and shipbuilding. It produces somewhere near 400,000 tons per year. The company sells its products to clients in Canada and the US. Previously a subsidiary of CITIC Group, Claymont Steel (as CitiSteel USA) was acquired by H.I.G. Capital, a private equity and venture capital investment firm in 2005. H.I.G. formed Claymont Steel Holdings in 2006 with the intent to take the company public. * * * As reported in the Troubled Company Reporter on Dec. 12, 2007, Moody's Investors Service placed all of its ratings, including its 'B' corporate credit rating, on Claymont Steel Inc. on CreditWatch with positive implications following the announcement that Evraz Group S.A., through its wholly owned subsidiary Titan Acquisition Sub, Inc., has entered into a definitive agreement under which Evraz will acquire Claymont Steel for $23.50 per share, for an aggregate purchase price of approximately $565 million, including debt. If Claymont's debt is retired as a result of the transaction, its ratings will be withdrawn. CONCORD RE: S&P Withdraws BB+ Rating on $365 Million Bank Loan -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB+' rating on Concord Re Ltd.'s $365 million bank loan. The company repaid all outstanding amounts and terminated the facility. CONGOLEUM CORP: Sept. 30 Balance Sheet Upside-Down by $44.9 Mil. ---------------------------------------------------------------- Congoleum Corporation's consolidated balance sheet at Sept. 30, 2007, showed $185.9 million in total assets and $230.8 million in total liabilities, resulting in a $44.9 million stockholders' deficit. The company reported net income of $1.2 million for the third quarter ended Sept. 30, 2007, versus a net loss of $413,000 million in the third quarter of 2006. Sales for the three months ended Sept. 30, 2007, were $53.6 million, compared with sales of $57.5 million reported in the third quarter of 2006, a decrease of 6.7%. Sales for the nine months ended Sept. 30, 2007, were $160.4 million, compared with sales of $173.4 million in the first nine months of 2006. Net income for the nine months ended Sept. 30, 2007, was $1.7 million, versus net income of $413,000 in the first nine months of 2006. Roger S. Marcus, Chairman of the Board, commented, "Third quarter shipments were well below year earlier levels, although a price increase we instituted in the second quarter of this year helped mitigate the lower unit volumes. Net results for the quarter, however, improved considerably du