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 24, 2008, Vol. 12, No. 20 Headlines ABFS MORTGAGE: $281,377 Losses Spur S&P's "D" Certificate Rating AIRTRAN AIRWAYS: Schedules Annual Shareholders Meeting on May 21 AK STEEL: Earns $106.7 Mil. in Fourth Quarter Ended December 31 AMERICREDIT CORP: Posts $19 Mil. Net Loss in Quarter Ended Dec. 31 AMERIQUEST MORTGAGE: S&P Cuts Rating on Class M2 Certificates to B AMP'D MOBILE: Taps William Morris, et al. as Liquidation Advisors AMP'D MOBILE: Boston Comms. Balks at Intellectual Property Sale ASARCO LLC: Court Okays Anderson Kill as Asbestos Panel Counsel ASARCO LLC: Hires AlixPartners as Bankruptcy Claims Professionals ASARCO LLC: Wants to Employ Filardi Law Offices as Local Counsel BANC OF AMERICA: Fitch Cuts Ratings on 29 Certificate Classes BANC OF AMERICA: Stable Performance Cues Fitch to Hold Ratings BARNHILLS BUFFET: Hires Hancock Law as Bankruptcy Counsel BARRICADE BOOKS: Plan-Filing Extension Hearing Set for February 6 BEAR STEARNS: District Court Postpones Ruling on Chapter 15 Appeal BEAR STEARNS: S&P Ratings Unaffected by Trust Deal's Amendments BIOENERGY OF AMERICA: Bankruptcy Cues Affiliate to Close 2 Plants BOMBARDIER INC: Earns $91 Million in 3rd Quarter Ended Oct. 31 BUFFETS HOLDINGS: Receives Interim Approval for New Financing CALPINE CORP: Bid Procedures on Hillabee Project Sale Approved CAPITAL GROWTH: Amended Employment Pacts Add $250,000 Base Salary CLAYTON WILLIAMS: Provides Update on Business Operations COMPUSA INC: To Close a Hundred Stores Nationwide by March CONSECO FINANCE: S&P's Cuts Rating on Class B2 Certificates to B COUNTRYWIDE ALTERNATIVE: Fitch Holds 'BB' Rating on Cl. M-10 Loans COUNTRYWIDE HOME: S&P Cuts Rating on Class B-1 Certs. to 'B' CYBERHOME ENT: Extends Brand Package Bid Deadline to February 25 DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced DELTA FUNDING: S&P Junks Rating on Class M-2 Certs. From 'B' ENERGY FUTURE: Names John Young as Chief Executive Officer FEDERAL GYPSUM: 90% of Creditors Vote for Restructuring Plan FINANCE AMERICA: Poor Performance Cues S&P's Three Rating Cuts FIRST AMERICAN: Selling 78 Memphis Homes to Stave Off Bankruptcy FIRST HORIZON: Fitch Junks Ratings on 12 Certificate Classes FIELDSTONE MORTGAGE: S&P Junks Ratings on Two Certs. From 'BB' FORD CREDIT: S&P Attaches 'BB+' Rating on $62.036 Mil. Notes GENERAL MOTORS: Sells More Than 9 Million Vehicles Globally GETTY IMAGES: Board of Directors Explores Strategic Options GRANDE COMMS: S&P's Ratings Unaffected by Strategic Options Move GREATER MIAMI: Case Summary & 166 Largest Unsecured Creditors HAVEN HEALTHCARE: Committee Taps Deloitte as Financial Advisor HEARTLAND AUTO: Section 341(a) Creditors Meeting Reset to Mar. 12 HOLOGIC INC: Selling Gestiva Rights to KV Pharma for $82 Million IRVINE SENSORS: Grant Thornton Raises Going Concern Doubt JETBLUE AIRWAYS: Closes Stock Purchase Transaction With Lufthansa KIMBALL HILL: Deloitte & Touche Raises Going Concern Doubt LIBERATOR MEDICAL: Berenfeld Spritzer Raises Going Concern Doubt LID LTD: Disclosure Statement Hearing Slated for February 13 LMT MORTGAGE: Fitch Junks Ratings on 16 Certificate Classes MARYLAND DEVELOPMENT: Case Summary & 30 Largest Unsec. Creditors MASTR ALTERNATIVE: S&P Junks Rating on Class 15-B-5 Certs. MBS MANAGEMENT: Section 341(a) Meeting Scheduled on January 29 MEDIACOM COMMS: Asks "Emergency" Waiver to FCC's All-Digital Plan MEDIACOM COMMS: Sept. 30 Balance Sheet Upside-Down by $187.5 Mil. MERITAGE HOMES: Posts $118.6 Million Net Loss in 2007 3rd Quarter MOMENTIVE PERFORMANCE: Moves Exchange Offer Expiry to January 29 MORGAN STANLEY: Stable Performance Cues Fitch to Affirm Ratings MUSICLAND HOLDING: Court Confirms Second Amended Liquidation Plan NOLAND-DECOTO: M.A. West Meets Court's Acquisition Requirements NOVASTAR HOME: American Interbanc Files Involuntary Ch. 7 Petition NOVASTAR HOME: Involuntary Chapter 7 Case Summary PANTHER/DCP: Case Summary & 59 Largest Unsecured Creditors PATRIOT HEALTH: State's Insurance Department to Liquidate Business PEP BOYS: Posts $28 Million Net Loss in Third Quarter Ended Nov. 3 POTLATCH CORPORATION: Fitch Affirms 'BB+' Issuer Default Rating PROPEX INC: Wants to Employ Houlihan Lokey as Financial Advisor PROPEX INC: Wants to Employ Miller & Martin as Local Counsel PROPEX INC: Court Approves $60 Million Credit Facility PROPEX INC: Chap. 11 Filing Cues Moody's to Cut Corp. Rating to Ca PROPEX INC: Chapter 11 Filing Cues S&P's Corp. Rating Cut to D PUTNAM STRUCTURED: S&P Cuts Ratings on Two Notes to BB from BBB QUEBECOR WORLD: Bank Lenders Commit $1 Billion DIP Financing QUEBECOR WORLD: Obtains Creditor Protection Under CCAA (Canada) QUEBECOR WORLD: Wants Ernst & Young as CCAA (Canada) Monitor QUEBECOR WORLD: Moody's Slashes Corporate Family Rating to 'Ca' QUESTEX MEDIA: Broadens Service Scope With FierceMarkets Buyout REGAL ENT: Sept. 27 Balance Sheet Upside-Down by $93.1 Million ROUGE INDUSTRIES: Wants Until March 18 to File Chapter 11 Plan SARM MORTGAGE: Fitch Downgrades Ratings on 12 Certificate Classes SASCO 2002-4H: Fitch Puts 'B' Rated Class B-5 Certs. on Neg. Watch SCAN INTERNATIONAL: Selling 5 Retail Leases & 1 Warehouse Lease SECURED ASSETS: Chapter 11 Trustee Wants Shulman Hodges as Counsel SHAW GROUP: Finalizes Little Gypsy 3 Re-Power Project Agreement SMK SPEEDY: Bankruptcy Hurts Branch Store, Franchisee Says SOLUTIA INC: Chapter 11 Emergence Delayed on Credit Woes SP NEWSPRINT: Inks $350 Million Merger Pact With White Birch SP NEWSPRINT: S&P Cuts Corp. Rating to B+ on White Birch Deal SPECIALTY UNDERWRITING: S&P Cuts Rating on Class B-1 Certs. to D STRUCTURED ASSET: Low Credit Enhancement Cues S&P's Ratings Cut STRUCTURED ASSET: S&P Cuts Ratings on Two Certificates to Low-B SWIFT CORP: Weak Operations Prompt S&P to Cut Corp. Rating to B- TD AMERITRADE: Earns $241 Million in Quarter Ended December 31 TIMKEN CO: Inks Agreement to Acquire Boring Specialties TWEETER HOME: Court Extends Removal of Action Period Until May 7 UAP HOLDING: Agrium Acquisition Deal Gets Canada Commissioner's OK US CENTURY: Strong Capital Levels Prompt Fitch to Put 'BB' Rating US ENERGY: Taps Epiq Bankruptcy as Noticing and Claims Agent US ENERGY: Zahren, Reynolds and Augustine Joins Board of Directors VISTAR CORP: Signs $1.3 Bil. Buyout Deal With Performance Food VISTAR CORP: S&P Says Ratings Unmoved by Performance Food Deal WACHOVIA BANK: Fitch Affirms 'B+' Rating on $4.5MM Class O Certs. WELLCARE HEALTH: S&P Retains Negative CreditWatch on BB- Rating WHITE BIRCH: Affiliates Ink $350 Mil. Merger Deal w/ SP Newsprint WHITE BIRCH: SP Newsprint Deal Won't Affect S&P's "B" Rating WMC DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors XYIENCE INC: Failure to Secure More Capital Cues Bankruptcy Filing * Fitch Says US Equity REITs Have Adequate Liquidity * S&P Junks Ratings on 85 Classes of 56 NIMS RMBS Transactions * S&P Opines Auto Loan-Backed Securities are Deteriorating * Christopher Picone Joins Buccino & Assoc.' Real Estate Services * Huron Consulting Adds Turnaround, Utilities & Healthcare Experts * Reed Smith Adds 55 Lawyers Effective February 1 * U.S. Trustee Head Temporarily Suspends Debtor Audits for 2008 * Chapter 11 Cases with Assets & Liabilities Below $1,000,00 ********* ABFS MORTGAGE: $281,377 Losses Spur S&P's "D" Certificate Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B and M-2 mortgage pass-through certificates from ABFS Mortgage Loan Trust 2002-2. S&P lowered the rating on class B to 'D' from 'CCC' and lowered the rating on class M-2 to 'B' from 'BB'. At the same time, S&P affirmed its ratings on the remaining three classes from the same series. S&P downgraded class B because it experienced $281,377.49 in realized losses during the December 2007 remittance period. The downgrade of class M-2 reflects collateral performance that has eroded available credit support in recent months. To date, the series has experienced $17.915 million in cumulative realized losses to date. Serious delinquencies (90-plus days, foreclosures, and REOs) amount to $17.558. This transaction has paid down to 11.65%, or $44.259 million of the original principal balance. The affirmations reflect stable collateral performance as of the December 2007 remittance period. Current and projected credit support percentages are sufficient to support the ratings at their current levels. Credit support for the transaction is provided by subordination, excess interest, and overcollateralization. At issuance, the collateral backing the deal consisted of subprime fixed- and adjustable-rate fully amortizing first-lien mortgage loans secured by one- to four-family residential properties. Ratings Lowered ABFS Mortgage Loan Trust 2002-2 Rating ------ Class To From ----- -- ---- B D CCC M-2 B BB Ratings Affirmed ABFS Mortgage Loan Trust 2002-2 Class Rating ----- ------ A-6, A-7 AAA M-1 AA AIRTRAN AIRWAYS: Schedules Annual Shareholders Meeting on May 21 ---------------------------------------------------------------- AirTran Airways, a subsidiary of AirTran Holdings Inc., disclosed the airline will host its annual shareholders' meeting on May 21, 2008, at the Charleston Place Hotel in historic Charleston, South Carolina. Shareholders who own AirTran Holdings stock as of March 24, 2008, are invited to attend the meeting, which will begin at 11 a.m. EST. The annual report and proxy materials for the annual meeting are expected to be mailed to stockholders beginning on or about April 12, 2008. AirTran Airways, Inc. (NYSE: AAI) -- http://www.airtran.com/-- operates over 600 daily flights to 50 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, where it is the second largest carrier. AirTran Airways recently added the fuel-efficient Boeing 737-700 aircraft to create America's youngest all-Boeing fleet. The airline is also the first carrier to install XM Satellite Radio on a commercial aircraft and the only airline with Business Class and XM Satellite Radio on every flight. * * * Moody's Investors Service assigned a B2 senior secured debt rating to Airtran Airways Inc. on April 2003. The rating still holds to date. Airtran Holdings Inc.'s 7% Convertible Notes due 2023 carry Moody's Investors Service and Standard & Poor's junk ratings. AK STEEL: Earns $106.7 Mil. in Fourth Quarter Ended December 31 --------------------------------------------------------------- AK Steel Corp. reported 2007 fourth quarter net income of $106.7 million, compared to a net loss of $49.3 million in the 2006 fourth quarter. The net loss in the fourth quarter of 2006 included a pre-tax, non-cash "corridor" charge of $133.2 million for actuarial losses related to the company's retiree health care benefit plans. There was no corridor charge in 2007. For the full year, AK Steel earned net income of $387.7 million, compared to net income of $12 million for the full year in 2006. Net income for 2007 includes $39.8 million in one-time, pre-tax charges related to the implementation of new labor agreements at the company's Mansfield, Ohio and Middletown, Ohio plants. The 2006 net income included the corridor charge, well as $15.8 million of one-time charges related to the implementation of new labor agreements at the company's Butler, Pennsylvania and Zanesville, Ohio plants. At Dec. 31, 2008, the company's balance sheet showed total assets of $5.2 billion, total liabilities of $4.3 billion, and total shareholders' equity of $0.87 billion. About AK Steel Corp. Headquartered in Middletown, Ohio, AK Steel Corp. (NYSE: AKS) -- http://www.aksteel.com/-- produces flat-rolled carbon, stainless and electrical steels, as well as tubular steel products for the automotive, appliance, construction and manufacturing markets. * * * Moody's Investors Service placed AK Steel Corporation's long term corporate family and probability of default ratings at 'Ba3' in August 2007. The ratings still hold to date with a stable outlook. AMERICREDIT CORP: Posts $19 Mil. Net Loss in Quarter Ended Dec. 31 ------------------------------------------------------------------ AmeriCredit Corp. disclosed Tuesday results of operations for its second fiscal quarter ended Dec. 31, 2007. The automobile finance company reported a net loss of $19.1 million for the second fiscal quarter ended Dec. 31, 2007, versus earnings of $95.4 million for the same period a year earlier. For the six months ended Dec. 31, 2007, AmeriCredit reported net income of $42.7 million, versus earnings of $169.7 million for the six months ended Dec. 31, 2006. Operating results include Long Beach Acceptance Corp. since its acquisition on Jan. 1, 2007. Net income for the three and six months ended Dec. 31, 2006, included a $23.0 million after-tax gain related to the partial sale of AmeriCredit's investment in DealerTrack Holdings Inc. Total revenues were $653.3 million for the three months ended Dec. 31, 2007, versus total revenues of $575.6 million for the same period a year earlier. Total revenues were $1.31 billion for the six months ended Dec. 31, 2007, versus total revenues of $1.10 billion for the six months ended Dec. 31, 2006. Automobile loan purchases increased to $1.80 billion for the three months ended Dec. 31, 2007, compared to $1.74 billion for the same quarter last fiscal year. Loans purchased for the six months ended Dec. 31, 2007, were $4.19 billion compared to $3.42 billion for the same period a year earlier. Managed receivables totaled $16.35 billion at Dec. 31, 2007, compared to $12.58 billion at Dec. 31, 2006. Annualized net charge-offs totaled 6.9% of average managed receivables for the December 2007 quarter compared to 5.8% for the December 2006 quarter. For the six months ended Dec. 31, 2007, annualized net charge-offs were 6.2% compared to 5.6% for the same period last year. Managed receivables 31-to-60 days delinquent were 6.8% of the portfolio at Dec. 31, 2007, compared to 6.7% at Dec. 31, 2006. Accounts more than 60 days delinquent were 3.0% of the portfolio at Dec. 31, 2007, compared to 2.6% a year ago. "The December quarter was challenging on many fronts, with weaker credit performance and uncertainty in the capital markets. As a result, we have revised our operating plans to align our loan volume with available capital resources," said AmeriCredit president and chief executive officer Dan Berce. "Over the next several months, we will bring our originations infrastructure and overhead into alignment with our revised originations target." Balance Sheet At Dec. 31, 2007, the company's consolidated financial statements showed $18.15 billion in total assets, $16.17 billion in total liabilities, and $1.98 billion in total shareholders' equity. About AmeriCredit Based in Fort Worth, Texas, AmeriCredit Corp. (NYSE: ACF) -- http://www.americredit.com/-- is an independent automobile finance company that provides financing solutions indirectly through auto dealers and directly to consumers in the United States and Canada. AmeriCredit has over one million customers and more than $16.0 billion in managed auto receivables. The Company was founded in 1992. * * * To date, AmeriCredit Corp. carries Moodys' Investors Service 'Ba2' corporate family and 'Ba3' senior unsecured debt ratings which were placed in June 2007. Outlook is Negative. AMERIQUEST MORTGAGE: S&P Cuts Rating on Class M2 Certificates to B ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on the class M2 asset-backed pass-through certificates from Ameriquest Mortgage Securities Inc.'s series 2003-AR2. At the same time, S&P affirmed its ratings on eight classes from series 2002-3, 2003-1, and 2003- AR2. The lowered rating reflects: -- Monthly net losses that have consistently exceeded monthly excess interest; -- The complete depletion of overcollateralization (O/C) for series 2003-AR2; and -- High severe delinquencies (90-plus days, foreclosures, and REOs) totaling $10.801 million. The affirmations reflect stable collateral performance as of the December 2007 remittance period for the eight classes from these three transactions. Current and projected credit support percentages are sufficient to support the ratings at their current levels. Credit support for the transactions is provided by subordination, excess interest, and O/C. The collateral for these deals consists of 30-year, fixed- and adjustable-rate subprime mortgage loans secured by first liens on one- to four-family residential properties. Rating Lowered Ameriquest Mortgage Securities Inc. Rating ------ Series Class To From ------ ----- -- ---- 2003-AR2 M2 B BBB Ratings Affirmed Ameriquest Mortgage Securities Inc. Series Class Rating ------ ----- ------ 2003-AR2 M-1 AAA 2003-AR2 M-3 CCC 2003-1 M-1 AA+ 2003-1 M-2 BBB 2003-1 MF-3, MV-3 CCC 2002-3 M-2 A+ 2002-3 M-3 BBB AMP'D MOBILE: Taps William Morris, et al. as Liquidation Advisors ----------------------------------------------------------------- Amp'd Mobile Inc. seeks permission from the U.S. Bankruptcy Court for the District of Delaware to employ William Morris Agency LLC, Quinn Pacific, and Mosaic Capital LLC, as its liquidation advisors in connection with efforts to sell, license, or liquidate its intellectual property assets. The Debtor relates that since late July 2007, it has continued to market its assets, including its IP Assets. By this application, the Debtor seeks to focus on that effort and utilize the expertise of the Liquidation Advisors, each of whom have specific niche in the entertainment marketplace. The Debtor states that the Liquidation Advisors have specific entertainment industry expertise and the ability to target identified specific prospects; and will be making a concerted effort to assist it in bringing a transaction to closing. The Debtor further relates that with the assistance of the Liquidation Advisors, a targeted approach in the entertainment industry is the method most likely to realize significant value from the sale of its IP Assets. As liquidation advisors, each of WMA, QP and Mosaic will assist, advise and coordinate with the Debtor to sell the subject IP Assets, including facilitating meeting and negotiations related to an asset sale. The Liquidation Advisors will help identify buyers for all or part of the IP assets. The Debtor also seeks to award particular levels of compensation to each of the Liquidation Advisors if they succeed in their efforts to help the Debtor locate a potential buyer or licensee of the IP Assets. Steven M. Yoder, Esq., at Potter Anderson & Corroon LLP, in Wilmington, Delaware, relates that the Debtor has negotiated specific percentage advisory fee or commissions with each of the Liquidation Advisors that would be payable upon approval and closing of a specific transaction: A. WMA Fee Structure The Debtor propose to pay WMA a fee in an amount equal to 4% of the total combined gross sale proceeds so long as the amount of the sale of the IP Assets exceeds $2,250,000 should a transaction occur with any entity listed on the WMA prospect list. Additionally, WMA will be entitled to documented expense reimbursement of up to $8,500, which may be deducted from the Success Fee earned. Should a transaction be approved and close with an entity not specifically listed on the WMA prospect list, WMA's fee will be reduced to 3%. B. QP Fee Structure If a sale of the IP Assets occurs and the purchaser is listed on the QP prospect list, QP will be entitled to a flat fee of 10% of the transaction value. No fee will be owed to QP if a transaction is closed with a buyer not in the QP prospect list. C. Mosaic Fee Structure The Debtor has agreed to pay Mosaic a fee in an amount equal to the greater of $250,000 or 5% of a transaction up to $20,000,000 if a transaction is completed with one of the prospects identified by Mosaic. In the event that a transaction is completed in an amount more than $20,000,000, Mosaic will be entitled to a Fee of 7%. In addition, Mosaic will be entitled to documented expense reimbursement of up to $15,000. Only a transaction that is completed with prospects identified by Mosaic will result in a payment to the entity. Mr. Yoder asserts that the proposed Success Fees is tied directly to the value to be realized for the IP Assets, which in turn will maximize the value of the Debtor's estate. Kings Road Investments, the Debtor's secured lender, supports the Debtor's request, according to Mr. Yoder. Stuart R. Tenzer, senior vice president at William Morris, assures the Court that his firm is a disinterested person as the term is defined in Section 101(14) of the Bankruptcy Code. Representatives of QP and Mosaic also relate that their firms are disinterested persons. The Liquidation Advisors maintain that they do not have interests materially adverse to the Debtor's interests. Headquartered in Los Angeles, California, Amp'd Mobile Inc. aka Amp'D Mobile LLC -- http://www.ampd.com/-- is a mobile virtual network operator that provides voice, text and entertainment content to subscribers who contract for cellular telephone service. The company filed for chapter 11 protection on June 1, 2007 (Bankr. D. Del. Case No. 07-10739). Steven M. Yoder, Esq., Eric M. Sutty, Esq. and Mary E. Augustine, Esq. at The Bayard Firm represent the Debtor in its restructuring efforts. Attorneys at Otterbourg, Steindler, Houston & Rosen, P.C. and Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, represent the Official Committee of Unsecured Creditors. In its schedules filed with the Court, the Debtor listed total assets of $47,603,629 and total debts of $164, 569,842. The Debtor's exclusive period to file a plan expired on Sept. 29, 2007. (Amp'd Mobile Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). AMP'D MOBILE: Boston Comms. Balks at Intellectual Property Sale --------------------------------------------------------------- Cellular Express Inc., dba Boston Communications Group Inc., opposes any sale of the intellectual property it has licensed to Amp'd Mobile Inc. BCGI entered into a Service Agreement with the Debtor on Oct. 18, 2004, whereby BCGI provides the Debtor with critical billing and transaction processing services. Because a proposed assignee for the Service Agreement or the BCGI IP has not been identified yet, BCGI does not consent to any assignment of the Service Agreement, Mark D. Olivere, Esq., at Edwards Angell Palmer & Dodge LLP, in Wilmington, Delaware, tells the Court. If and when a proposed assignee is identified, BCGI contends that its consent to assignment of the Service Agreement will be conditioned on, among other things: (i) the immediate payment of $3,048,362 in prepetition arrearages due under the Service Agreement; and (ii) adequate assurance of the proposed assignee's future performance under the Agreement. Headquartered in Los Angeles, California, Amp'd Mobile Inc. aka Amp'D Mobile LLC -- http://www.ampd.com/-- is a mobile virtual network operator that provides voice, text and entertainment content to subscribers who contract for cellular telephone service. The company filed for chapter 11 protection on June 1, 2007 (Bankr. D. Del. Case No. 07-10739). Steven M. Yoder, Esq., Eric M. Sutty, Esq. and Mary E. Augustine, Esq. at The Bayard Firm represent the Debtor in its restructuring efforts. Attorneys at Otterbourg, Steindler, Houston & Rosen, P.C. and Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, represent the Official Committee of Unsecured Creditors. In its schedules filed with the Court, the Debtor listed total assets of $47,603,629 and total debts of $164, 569,842. The Debtor's exclusive period to file a plan expired on Sept. 29, 2007. (Amp'd Mobile Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Services Inc. http://bankrupt.com/newsstand/or 215/945-7000). ASARCO LLC: Court Okays Anderson Kill as Asbestos Panel Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors for the Asbestos Subsidiary Debtors in ASARCO LLC and its debtor-affiliates' Chapter 11 cases obtained permission from the U.S. Bankruptcy Court for the Southern District of Texas to employ Anderson Kill & Olick LLP, as their special insurance counsel, nunc pro tunc to April 11, 2005. Nathaniel Peter Holzer, Esq., at Jordan, Hyden, Womble Culbreth & Holzer, P.C., in Corpus Christi, Texas, told the Court that the Asbestos Subsidiary Debtors have similar issues concerning prepetition insurance settlement and buybacks. As a result, ASARCO and the Asbestos Debtors have filed a number of fraudulent conveyance actions, which are currently abated by Court order. The Subsidiary Debtors stated that they have an immediate need to retain Anderson Kill to perform the same services the firm performs for ASARCO. Mr. Holzer said Anderson Kill will apply to the Court for compensation in connection with its services to the Asbestos Debtors at either its customary hourly rates or the discounted rates the firm previously agreed with ASARCO. Anderson Kill will also be reimbursed for any necessary out-of-pocket expenses. Rhonda D. Orin, Esq., a partner at Anderson Kill, assured the Court that her firm does not represent any interest adverse to ASARCO, the Asbestos Debtors, and their estates, and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. 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' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASARCO LLC: Hires AlixPartners as Bankruptcy Claims Professionals ----------------------------------------------------------------- ASARCO LLC and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the Southern District of Texas to employ AlixPartners as its bankruptcy claims professionals, nunc pro tunc Nov. 15, 2007. AlixPartners will provide ASARCO with case management services, trustee services, expert testimony, bankruptcy advisory services, claims and voting agent services, data analytics expert, data management and integrity experts and stakeholder communication services. Specifically, AlixPartners will: (a) evaluate proofs of claim, scheduled liabilities, liabilities recorded on the Debtors' books and record, and other available claims and liability information; (b) evaluate overall liability and claims exposure based on available information; (c) submit initial findings in a written report; (d) perform additional claims and liabilities evaluation, including, but not limited to, analysis of any reports, analyses, or opinions offered by other parties; and (e) assist with other matters as asked by ASARCO that fall within AlixPartner's expertise and that are mutually agreeable. ASARCO will pay AlixPartners according to the firm's customary hourly rates, with discounted rates ranging from $105 to $675 depending on the specific individual performing the service and that individual's level of experience and expertise: Professionals Hourly Rate ------------- ----------- Managing Director $475 - $675 Directors $375 - $470 Vice Presidents $320 - $370 Associates $230 - $315 Analysts $150 - $225 Paraprofessionals $105 - $145 ASARCO has paid a $50,000 retainer to AlixPartners to be credited against the overall cost of its services, James R. Prince, Esq., at Baker Botts, LLP, in Dallas, Texas, tells the Court. Pursuant to an engagement letter between ASARCO and AlixPartners, Meade Monger will be the AlixPartners managing director primarily responsible for the overall engagement of the firm. Mr. Monger will be assisted by a staff of consultants at various levels. In connection with its engagement, AlixPartners has employed Charles M. Setzfand, the sole owner of Rivershore Advisors, LLC, a consulting agency, to assist with the claims resolution process. Mr. Monger assures the Court that his firm does not represent any interest adverse to ASARCO and its creditors, and is a "disinterested party" as the term is defined in Section 101(14) of the Bankruptcy Code. 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' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASARCO LLC: Wants to Employ Filardi Law Offices as Local Counsel ---------------------------------------------------------------- ASARCO LLC and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Southern District of Texas to employ The Filardi Law Offices LLC as their local counsel in a certain Tersigni action, nunc pro tunc to Jan. 3, 2008. L. Tersigni Consulting, P.C., the financial advisor retained by the Official Committee of Unsecured Creditors for the Asbestos Subsidiary Debtors, filed a Chapter 11 case in the U.S. Bankruptcy Court in the District of Connecticut, Bridgeport Division, in November 2007. An investigation into alleged overbillings done by the Tersigni firm's deceased owner, Loreto Tersigni, is ongoing in the Connecticut Court. The Debtors want to appear in the Tersigni bankruptcy case to monitor the case's progress and developments, to pursue any potential claims against the firm, and to otherwise protect their interests. As local counsel, Filardi will: (a) represent the Debtors at any proceeding or hearing before the Connecticut Court; (b) prepare any pleadings, motions, answers, notices, orders, and reports required for the Debtors in the Tersigni bankruptcy case; (c) advise, consult with, and assist the Debtors in their investigation of the acts, conduct, assets, liabilities and financial condition of Tersigni, the operation of Tersigni's business, and the desirability of the continuance of its business; and (d) assist the Debtors in the negotiation of or opposition to or support of a plan or plans of reorganization in the Tersigni case. The Debtors will pay $395 per hour for Charles J. Filardi, Jr., Esq., who will take the lead in representing the Debtors in the Tersigni case, and $150 per hour for paralegal work. Payment for the services to be rendered by Filardi will be taken from either the Wells Fargo Escrow Account or the London market insurers escrow account. Charles J. Filardi, Jr., principal at Filardi, assures the Court that his firm does not represent any interest adverse to the Debtors and their estate, and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. 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' exclusive period to file a plan expires on Feb. 11, 2008. (ASARCO Bankruptcy News, Issue No. 63; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). BANC OF AMERICA: Fitch Cuts Ratings on 29 Certificate Classes ------------------------------------------------------------- Fitch Ratings has taken various rating actions on these Banc of America Alternative Loan Trust mortgage pass-through certificates: Series ALT 2004-3 Groups 1 -3: -- Classes 1-A-1, 1-IO, 1-PO, 2-A-1, 2-IO, 2-PO, 3-A-1 to 3- A-4, 3-IO, 3-PO and 30-B-IO affirmed at 'AAA'; -- Class 30-B1 affirmed at 'AA'; -- Class 30-B2 affirmed at 'A'; -- Class 30-B3 affirmed at 'BBB'; -- Class 30-B4 downgraded to 'B+' from 'BB'; -- Class 30-B5 downgraded to 'C/DR5' from 'B'. Series ALT 2004-3 Group 4: -- Classes 4-A-1, 4-IO and 4-PO affirmed at 'AAA'; -- Class 4-B1 affirmed at 'AA'; -- Class 4-B2 affirmed at 'A'; -- Class 4-B3 affirmed at 'BBB'; -- Class 4-B4 affirmed at 'BB'; -- Class 4-B5, rated 'B', placed on Rating Watch Negative. Series ALT 2005-7 Groups 1 - 3: -- Classes CB-1 to CB-5, CB-R, 2-CB1, 3-CB1, CB-IO and CB-PO affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 downgraded to 'BBB-' from 'BBB'; -- Class B4 downgraded to 'B+' from 'BB'; -- Class B5 downgraded to 'C/DR4' from 'B'. Series ALT 2005-11: -- Classes 1-CB-1 to 1-CB-8, 1-CB-R, 2-CB1, 3-CB1, CB-IO, CB- PO, 4-A-1 to 4-A-6, 4-IO and 4-PO affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 downgraded to 'BB+' from 'BBB'; -- Class B4 downgraded to 'B' from 'BB'; -- Class B5 downgraded to 'C/DR4' from 'B'. Series ALT 2006-1: -- Classes 1-CB-1, 1-CB-R, 2-CB1, 3-CB1, 4-CB-1, CB-IO and CB-PO affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 downgraded to 'BBB- from 'BBB'; -- Class B4 downgraded to 'B' from 'BB'; -- Class B5 downgraded to 'C/DR4' from 'B'. Series ALT 2006-4: -- Classes 1-A-1 to 1-A-6, 1-A-R, 1-IO, 1-PO, 15-IO, 15-PO, 2-A-1, 3-CB1 to 3-CB-6, 4-CB-1, 5-CB-1, CB-IO and CB-PO affirmed at 'AAA'; -- Class B1 affirmed at 'AA'; -- Class B2 affirmed at 'A'; -- Class B3 downgraded to 'BBB-' from 'BBB'; -- Class B4 downgraded to 'B' from 'BB' and placed on Rating Watch Negative; -- Class B5 downgraded to 'C/DR5' from 'B'. Series ALT 2006-5: -- Classes 2-A-1 to 2-A-9, 3-A-1, CB-1 to CB-18, CB-R, CB-IO, CB-PO, X-IO and X-PO affirmed at 'AAA'; -- Class M affirmed at 'AA+'; -- Class B1 downgraded to 'AA-' from 'AA'; -- Class B2 downgraded to 'BBB+' from 'A'; -- Class B3 downgraded to 'BB-' from 'BBB'; -- Class B4 downgraded to 'C/DR4' from 'BB'; -- Class B5 downgraded to 'C/DR5' from 'B'. Series ALT 2006-8: -- Classes 1-A-1 to 1-A-5, 1-A-R, 2-A-1 to 2-A-3, 3-A-1, X- IO, XB-IO and X-PO affirmed at 'AAA'; -- Class M affirmed at 'AA+'; -- Class B1 downgraded to 'AA-' from 'AA'; -- Class B2 downgraded to 'BBB+' from 'A'; -- Class B3 downgraded to 'BB' from 'BBB'; -- Class B4 downgraded to 'C/DR4' from 'BB'; -- Class B5 downgraded to 'C/DR5' from 'B'. Series ALT 2007-1: -- Classes 1-A-1, 2-A-1, 2-A-2, 3-A-1 to 3-A-35, 3-A-R, 3-IO, 3-PO and 4-A-1 affirmed at 'AAA'; -- Class M affirmed at 'AA+'; -- Class B1 downgraded to 'AA-' from 'AA'; -- Class B2 downgraded to 'BBB+' from 'A'; -- Class B3 downgraded to 'BB' from 'BBB'; -- Class B4 downgraded to 'C/DR4' from 'BB'; -- Class B5 downgraded to 'C/DR5' from 'B'. The affirmations reflect satisfactory credit enhancement relationships to future loss expectations and affect approximately $2.47 billion in outstanding certificates as of the December 2007 distribution date. The classes downgraded total approximately $66.8 million and the classes placed on Rating Watch Negative total approximately $1.9 million. These rating actions reflect the deterioration of CE relative to future expected losses. The underlying collateral in these transactions consists of fixed- rate mortgage loans secured by first liens on one- to four-family residential properties. Bank of America, N.A., currently rated 'RPS1' by Fitch for ALT-A transactions, is the servicer for these loans. These transactions are seasoned from a range of 9 months (ALT 2007-1) to 45 months (ALT 2004-3). The pool factors range from 52% to 88%. The 90+ delinquencies range from 0.07% (ALT 2004-3 Group 4) to 2.64% (ALT 2007-1) of current collateral balances. The cumulative losses range from 0% (ALT 2006-1 and ALT 2007-1) to 0.31% (ALT 2004-3 Groups 1 - 3) of original collateral balances. BANC OF AMERICA: Stable Performance Cues Fitch to Hold Ratings -------------------------------------------------------------- Fitch Ratings affirms Banc of America Commercial Mortgage Inc., commercial mortgage pass-through certificates, series 2004-4 as: -- $22.6 million class A-2 at 'AAA'; -- $240 million class A-3 at 'AAA'; -- $225 million class A-4 at 'AAA'; -- $107 million class A-5 at 'AAA'; -- $272.2 million class A-6 at 'AAA'; -- $150 million class A-1A at 'AAA'; -- Interest-only class XC at 'AAA'; -- Interest-only class XP at 'AAA'; -- $35.6 million class B at 'AA'; -- $11.3 million class C at 'AA-'; -- $21.1 million class D at 'A'; -- $9.7 million class E at 'A-'; -- $16.2 million class F at 'BBB+'; -- $11.3 million class G at 'BBB'; -- $16.2 million class H at 'BBB-'; -- $6.5 million class J at 'BB+'; -- $6.5 million class K at 'BB'; -- $6.5 million class at L 'BB-'; -- $3.2 million class M at 'B+'; -- $3.2 million class N at 'B'; -- $4.9 class O at 'B-'; -- $2.2 million class DM-A at 'A+'; -- $4.6 million class DM-B at 'A'; -- $3.7 million class DM-C at 'A-'; -- $3.9 million class DM-D at 'BBB+'; -- $4.2 million class DM-E at 'BBB'; -- $3.8 million class DM-F at 'BBB-'; -- $3.5 million class DM-G at 'BBB-'. Fitch does not rate the $16.2 million P and $103 million BC classes. Class A-1 has paid in full. The affirmations are the result of stable performance and minimal collateral pay down since issuance. As of the January 2008 distribution date, the pool's aggregate principal balance has decreased 8% to $1.31 billion from $1.43 billion at issuance. Nine loans, 8% of the pool, have defeased. There are no delinquent or specially serviced loans. Fitch maintains investment grade shadow ratings on five loans in the trust: The Bank of America Center (11.4%), Dallas Market Center (4.8%), Northpointe Plaza (2.3%), Inland Southwest Portfolio/Heritage Towne Crossing (1%) and Wrangler Company (0.9%). The Bank of America Center is secured by a three-building complex with a total of 1.8 million square foot in San Francisco, California. Third quarter 2007 occupancy was 94%, compared to 93.7% at issuance. The Dallas Market Center is secured by a 3.2 million sf merchandise mart in Dallas, Texas. Occupancy as of third quarter 2007 was 91% and at issuance was 94%. Northpointe Plaza is secured by a 360,880 sf portion of the 461,118 sf foot retail power center in Spokane, Washington. Occupancy was 96% as of third quarter 2007, compared to 98% at issuance. The Inland Southwest Portfolio/Heritage Towne Crossing is secured by two single-tenant drug stores in Okalahoma and one shadow- anchored retail center in Euless, Texas, with a total of 108,287 sf. The retail center is 80% occupied as of third quarter 2007. Wrangler Company is secured by a 316,800 sf industrial distribution center in El Paso, Texas. The property is 100% leased for the term of the loan. BARNHILLS BUFFET: Hires Hancock Law as Bankruptcy Counsel --------------------------------------------------------- The United States Bankruptcy Court for the Middle District of Tennessee gave Barnhill's Buffet Inc. permission to employ The Hancock Law Firm as its bankruptcy counsel. Hancock Law will: a) prepare pleadings and applications for filing and conducting examinations incidental to any related proceedings or to the administration of this case; b) advise the Debtor of its rights, duties, and obligations as Debtor operating under Chapter 11 of the Bankruptcy Code in this District; c) take any and all other necessary action incident to the proper preservation and administration of this Chapter 11 case; and d) advise and assist the Debtor in the liquidation of its assets and the ultimate formation and confirmation of a plan pursuant to Chapter 11 of the Bankruptcy Code, the disclosure statement, and any and all matters related thereto. Wm. Caldwell Hancock, Esq., who will be the primary attorney for the debtor, will bill $350 per hour for this engagement, while paralegals who are expected to perform services in this case as well will charge at $125 per hour. To the best of the Debtor's knowledge the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Hancock can be reached at: Wm. Caldwell Hancock, Esq. The Hancock Law Firm 102 Woodmont Boulevard, Suite 200 Nashville, Tennessee 37205 Tel: (615) 345-0202 Fax: (615) 296-0947 Madison, Tennessee-based Barnhill's Buffet Inc., aka Barnhill's Buffet of Tennessee Inc., -- http://www.barnhills.com/-- operates a chain of restaurants, a total of 29 stores located in six states. Its parent company is Dynamic Acquisition Group LLC. It filed for chapter 11 bankruptcy on Dec. 3, 2007 (Bankr. M.D. Tenn. Case No. 07-08948) after it continued to suffer operating losses. William Caldwell Hancock, Esq., at The Hancock Law Firm represents the Debtor in its restructuring efforts. Attorneys at MGLAW PLLC represent the Official Committee of Unsecured Creditors. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $50 million. As reported in the Troubled Company Reporter on Jan. 2, 2008, the Court authorized the Debtor to obtain secured postpetition financing consisting of a revolving credit loan up to an aggregate principal amount not to exceed $1,250,000 from Wells Fargo and to use the cash collateral securing the Debtor's prepetition obligations to the bank. BARRICADE BOOKS: Plan-Filing Extension Hearing Set for February 6 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of New York will convene a hearing on Feb. 6, 2008, to consider the request of Barricade Books Inc. to extend its exclusive right to file a reorganization plan until June 6, 2008, Bill Rochelle of Bloomberg News reports. As reported in the Troubled Company Reporter on Oct. 17, 2007, Carole Stuart, president of Barricade Books Inc., disclosed in a court filing that three pending lawsuits prompted the company to file for chapter 11 protection. Mr. Stuart pointed out that the filing was meant to avoid "mounting costs and distraction of litigation" which have taken their toll on the company's operations. According to Mr. Stuart, 51% equity holder in Barricade, the lawsuits are collateral consequences of the company's business of publishing controversial books. Headquartered in Fort Lee, New Jersey, Barricade Books Inc. -- http://www.barricadebooks.com/-- is an independent publisher of non-fiction books. The company filed a chapter 11 petition on October 10, 2007 (Bankr. S.D.N.Y. Case No. 07-13176). Alan D. Halperin, Esq. at Halperin Battaglia Raicht LLP serves as the Debtor's counsel. The Debtor's schedules listed total assets of $389,352 and total debts of $1,607,484. BEAR STEARNS: District Court Postpones Ruling on Chapter 15 Appeal ------------------------------------------------------------------ The Honorable Robert Sweet of the U.S. District Court for the Southern District of New York postponed decision on the appeal of the Joint Official Liquidators of Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., and Bear Stearns High-Grade Structured Credit Enhanced Leverage Master Fund, Ltd., relating to the order of the Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York, denying the Funds' Chapter 15 Petition. Judge Sweet held a hearing on oral arguments of the Appeal on Jan. 16, 2008. After hearing arguments from the Funds' Liquidators and the parties who filed amici curiae briefs, Judge Sweet said he would issue his ruling "later" without giving a definite date, Bloomberg News reports. Abid Qureshi, Esq., at Akin Gump Strauss Hauer, LLP, in New York, told Bloomberg after the hearing that he doesn't expect a decision before July. Simon Lovell Clayton Whicker and Kristen Beighton, the Funds' Liquidators, argued before the District Court that Bankruptcy Judge Lifland was wrong when he denied recognition of the Funds' Cayman Islands liquidation as a "foreign main proceeding." The Liquidators want the District Court to overturn Judge Lifland's decision so that the Funds' U.S.-based assets can be protected while liquidation in the Cayman Islands proceeds. Lawyers representing the investment funds further argued that to deny the Funds Chapter 15 protection would be a blow to the original intent of Chapter 15: to encourage comity, which is the practice of respecting foreign courts, Bloomberg News related. To recall, Judge Lifland ruled in August 2007 that evidence presented by the Liquidators established that the United States, and not the Cayman Islands, is the Funds' "center of main interest." He also ruled that the only adhesive connection the Funds have with the Cayman Islands is the fact that they were registered there. "One of your main problems here is Burton Lifland," Judge Sweet told the Liquidators during the January 16 hearing, according to Bloomberg. Bankruptcy Judge Lifland is one of the authors of Chapter 15. "He's a whiz," Judge Sweet added. Aside from Judge Lifland, the Funds also met oppositions from Jay Westbrook of the University of Texas School of Law, one of the authors of Chapter 15, and two other lawyers who helped draft the law. "These so-called friends of the court appear to have their own axe to grind with respect to hedge funds," the Funds' counsel, Fred Hodara, Esq., at Akin Gump Strauss Hauer, LLP, in New York, said, as related by Bloomberg. He added that the "axe" is losses in the subprime mortgage industry. He said the friends of the court argue that the nature of the funds' failure are a reason to hold their liquidation in the US. "It's a very xenophobic view," Mr. Hodara told Bloomberg. About Bear Stearns Funds Grand Cayman, Cayman Islands-based Bear Stearns High-Grade Structured Credit Strategies Enhanced Leverage Master Fund Ltd. and Bear Stearns High-Grade Structured Credit Strategies Master Fund Ltd. are open-ended investment companies, which sought high income and capital appreciation relative to the London Interbank Offered Rate, and designed for long-term investors. On July 30, 2007, the Funds filed winding up petitions under the Companies Law (2007 Revision) of the Cayman Islands. Simon Lovell Clayton Whicker and Kristen Beighton at KPMG were appointed joint provisional liquidators. The joint liquidators filed for Chapter 15 petitions before the U.S. Bankruptcy Court for the Southern District of New York the next day. On August 30, 2007, the Honorable Burton R. Lifland denied the Funds protection under Chapter 15 of the Bankruptcy Code. Fred S. Hodara, Esq., Lisa G. Beckerman, Esq., and David F. Staber, Esq., at Akin Gump Strauss Hauer & Feld LLP, represent the liquidators in the United States. The Funds' assets and debts are estimated to be more than $100,000,000 each. (Bear Stearns Funds Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). BEAR STEARNS: S&P Ratings Unaffected by Trust Deal's Amendments --------------------------------------------------------------- Standard & Poor's Ratings Services reviewed an amendment dated Jan. 22, 2008, amending the supplemental trust agreements and the amended and restated master trust agreement for the Bear Stearns & Co. Inc. Municipal Securities Trust Certificates program and S&P has concluded that the amendment will not result in a reduction or withdrawal of the current ratings Standard & Poor's has assigned to outstanding series of floater and residual certificates. The amendment changes Section 5.1(a) of the master trust agreement to clarify that if a principal credit source is identified in a supplemental trust agreement, then an act of bankruptcy of both the bond issuer (or underlying obligor) and the principal credit source would have to occur in order for a tender option termination event to occur. This change enables the program to have trust credit and liquidity ratings that are dependent on, or correlated to, (in certain circumstances) an underlying obligor even in the case where a principal credit source for the underlying bonds has been identified. BIOENERGY OF AMERICA: Bankruptcy Cues Affiliate to Close 2 Plants ----------------------------------------------------------------- Bioenergy of Colorado halted operations at its two facilities in Denver over the bankruptcy of Bioenergy of America Inc., an affiliate, Sarah Smith writes for Biodiesel Magazine. Tom Davanzo, principal owner of Bioenergy plants, told Biodiesel Magazine that he expects a partially finished facility in New Jersey to be shelved and described the unfinished plant as "an awful big project." Mr. Davanzo stated he will not look for additional financing for the New Jersey facility, Biodiesel Magazine reports. Despite fear that Bioenergy of America's bankruptcy will also bring the entire company down the drain, Mr. Davanzo told Biodiesel Magazine that his staff remains hopeful. However, Mr. Davanzo could not ascertain to the Colorado facilities' fate, which is in the hands of a U.S. banrkuptcy judge, Biodiesel Magazine adds. About Bioenergy of Colorado Denver, Colorado-based Bioenergy of Colorado LLC -- http://www.bioenergycolorado.com/-- produces biodiesel. It purchases raw materials from premier American companies, such as Cargill, Ashland, Bunge, Conoco, Exxon Mobil. Its BioDiesel meets ASTM 6751 standards and is sold on a satisfaction guaranteed basis. BioEnergy samples production lots from a variety of locations during the process to insure our products meet the ASTM guideline. About Bioenergy of America Edison, New Jersey-based Bioenergy of America Inc. -- http://www.bioenergyofamerica.com/-- specializes in producing biofuel alternatives. The Debtor filed for chapter 11 petition on Jan. 3, 2008 (Bankr. D.N.J. Case No. 08-10087). Richard E. Weltman, Esq., at Weltman & Moskowitz LLP represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets between $1 million and $10 million and debts between $10 million and $50 million. The Debtor owes $7,600,000 and $2,301,581, respectively to unsecured creditors, Paragon Biofuels LLC and M.P.A. BOMBARDIER INC: Earns $91 Million in 3rd Quarter Ended Oct. 31 -------------------------------------------------------------- Bombardier Inc. reported net income of $91.0 million for the third quarter of fiscal 2008, ended Oct. 31, 2007, compared with net income of $74.0 million in the corresponding period in fiscal 2007. Earnings before financing income, financing expense and income taxes, from continuing operations, reached $201.0 million, compared to $105.0 million for the same period in the previous year. This brings the EBIT margin to 4.8%, which compares favorably to fiscal 2007's 3.1% for the same quarter. Free cash flow also surged by $677.0 million to reach $560.0 million. Net financing expense amounted to $68.0 million for the third quarter of fiscal year 2008, compared to $50.0 million for the corresponding period of last year. Consolidated revenues totalled $4.2 billion for the third quarter ended Oct. 31, 2007, compared to $3.4 billion for the same period last year. Cash and cash equivalents increased by $1.0 billion compared to Jan. 31, 2007, totalling $3.6 billion at the end of the third quarter of fiscal 2008. "Both business groups produced substantial increases in revenues and made steady improvement in profitability," commented Laurent Beaudoin, chairman of the Board and chief executive officer, Bombardier Inc. "They also generated high levels of free cash flow for the quarter. At Aerospace, orders for business aircraft remained solid, and deliveries of both business and regional aircraft continued to climb. "At Transportation, order levels were similarly robust, bringing our book-to-bill ratio to a healthy 1.7 for the quarter," added Mr. Beaudoin. "Indeed, the corporation's solid backlog, which now tops more than $50.0 billion, testifies to the enduring demand for our fully diversified product offering. I am confident that Bombardier will continue to build from this solid foundation to execute its market leadership strategy." Nine Month Results For the nine-month period ended Oct. 31, 2007, consolidated revenues reached $12.2 billion compared to $10.5 billion for the same period last year. For the nine-month period ended Oct. 31, 2007, EBIT from continuing operations before special items amounted to $597.0 million, or 4.9% of revenues, compared to $333.0 million, or 3.2% of revenues, for the same period the previous year. For the nine-month period ended October 31, 2007, net financing expense reached $209.0 million, compared to $148.0 million for the same period last year. The special item for the nine-month period ended Oct. 31, 2007, relates to the write-off of the carrying value of the investment in Metronet in Transportation. Net income was $99.0 million for the nine-month period ended Oct. 31, 2007, compared to $156.0 million for the same period the previous year. Balance Sheet At Oct. 31, 2007, the company's consolidated balance sheet showed $20.57 billion in total assets, $17.50 billion in total liabilities, and $3.07 billion in total stockholders' equity. About Bombardier Inc. Headquartered in Canada, Bombardier Inc. (TSE: BBD) -- http://www.bombardier.com/-- is a manufacturer of innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. * * * As reported in the Troubled Company Reporter on Jan. 22, 2008, Fitch Ratings upgraded Bombardier Inc.'s ratings, including the company's Issuer Default Rating to 'BB' from 'BB-', and removed the ratings from Rating Watch Positive following the company's early redemption of approximately $1.0 billion of debt. The Rating Outlook is Positive. BUFFETS HOLDINGS: Receives Interim Approval for New Financing ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted on Jan. 23, 2008, interim approval for Buffets Holdings, Inc., to access up to $30 million of the $85 million of new funding available under its $385 million debtor-in-possession credit facility. The DIP credit facility, which includes $300 million carried over from the company's prepetition credit facility, will be used to enhance the company's liquidity during the reorganization process. A hearing for final approval of the entire DIP facility has been scheduled for Feb. 13, 2008. "First Day Motions" Approval The company also obtained approval of its "First Day Motions," including its requests to: * Continue payment of salaries, wages and health and welfare benefits to employees as normal; * Pay vendors for postpetition goods and services provided on or after Jan. 22, 2008; and * Continue honoring customer programs and policies, including those pertaining to direct mail coupons and e-mail coupons, Senior Cards, Gift Cards and special promotions. The orders issued by the Court will help the company continue to operate its business during the reorganization process. Headquartered in Eagan, Minnesota, Buffets Holdings Inc. -- http://www.buffet.com/-- is the parent company of Buffets, Inc., the nation's largest steak-buffet restaurant company, currently operates 626 restaurants in 39 states, comprised of 615 steak- buffet restaurants and eleven Tahoe Joe's Famous Steakhouse restaurants, and franchises sixteen steak-buffet restaurants in six states. The restaurants are principally operated under the Old Country Buffet, HomeTown Buffet, Ryan's and Fire Mountain brands. Buffets, Inc. employs approximately 37,000 team members and serves approximately 200 million customers annually. The company and all of its subsidiaries filed Chapter 11 protection on Jan. 22, 2008 (Bankr. D. Del. Case Nos. 08-10141 to 08-10158). The Debtors have selected Paul, Weiss, Rifkind, Wharton & Garrison LLP to represent them. Young Conaway Stargatt & Taylor, LLP, are the Debtors' proposed legal advisor and Houlihan Lokey Howard & Zukin Capital, Inc. and Kroll Zolfo Cooper LLC, their proposed financial advisors. The Debtors' balance sheet as of Sept. 19, 2007, showed total assets of $963,538,000 and total liabilities of $1,156,262,000. (Buffets Holdings Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) CALPINE CORP: Bid Procedures on Hillabee Project Sale Approved -------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approved the bidding procedures governing the auction and sale of Calpine Corporation's Alexander City, Alabama power plant known as the Hillabee Project. The Written Offer must, among other things, be accompanied by a $12,250,000 cash deposit, and must not ask for any transaction or break-up fee. To be deemed a "Qualifying Bidder," each potential bidder must submit to the Debtors, the Official Committee of Unsecured Creditors, the Official Committee of Equity Security Holders, and the Unofficial Committee of Second Lien Debtholders, a written offer so as to be received by not later than 12:00 p.m. on January 31, 2008. If more than one bid is timely received, the Debtors will conduct an auction at 10:00 a.m., on February 5, 2008, at the offices of Kirkland & Ellis, LLP, at Citigroup Center at 153 East 53rd Street, New York. If the Debtors choose a bidder other than CER Generation, LLC, the Debtors will pay $3,062,500 as Break-Up Fee to CER. The Break-Up Fee will constitute an allowed administrative expense of the Debtors. For the bid to be considered qualified, the bidders must submit initial overbids in an amount not less than $1,000,000 more than the Purchase Price plus the Break-Up Fee. Subsequent overbid amounts at the Auction must be in increments of at least $500,000. If no other bid is timely received, a hearing to consider the sale of the Hillabee Project to CER is scheduled on February 6. Any counterparty to an Assigned Contract that wishes to obtain adequate assurance information regarding other bidders that will participate at the Auction must notify the Debtors on or before January 29. Any counterparty who does not properly object to the proposed Cure Amounts will be forever barred from objecting to the cure amounts. Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., Kirkland & Ellis LLP, represents the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Nov. 31, 2007, the Debtors disclosed total assets of $18,212,000,000, total liabilities not subject to compromise of $11,024,000,000, total liabilities subject to compromise of $11,859,000,000 and stockholders' deficit of $4,675,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. (Calpine Bankruptcy News; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported in the Troubled Company Reporter on Jan. 11, 2008, Moody's Investors Service assigned a B2 Corporate Family Rating and a B2 Probability of Default Rating to Calpine Corporation in conjunction with the company's plan to exit bankruptcy in early 2008. Moody's also assigned B2 to the company's $7.3 billion senior secured term loan and revolving credit facility, the majority of which will be used as the company's primary exit financing to help satisfy approximately $8.2 billion of secured and other claims to be settled in cash, as well as to pay other related expenses. The rating outlook for Calpine is stable. CAPITAL GROWTH: Amended Employment Pacts Add $250,000 Base Salary ----------------------------------------------------------------- Capital Growth Systems Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that on Dec. 28, 2007, it amended the employment agreements of each of Patrick Shutt (CEO), George King (President) and Robert Pollan (Chief Operating Officer) and entered into an employment agreement with Jim McDevitt (CFO, Senior Vice President - Finance, Secretary and Treasurer). The employment agreement amendments each call for base salary effective Jan. 1, 2008 of $250,000, in addition to cash bonuses as previously reported by the company. The new employment agreement calls for a base salary of $200,000 per year, with the employment term for a two-year period commencing with Jan. 1, 2008. All of the agreements allow for bonuses in 2008 and thereafter of up to 100% of base compensation, to be based on targets determined by the company's Board of Directors or its Compensation Committee. Each employee is provided the option to have future bonuses awarded either in cash or in options to purchase Common Stock of the company that would have an exercise price discounted to its fair market value and be in an amount equal to the cash bonus that would be waived. Such options, if any, would be exercisable in the calendar year following the year of grant of the options, subject to acceleration in the event of a change in control. Future annual contingent bonuses will be based upon performance metrics established by the company from time to time. In addition to the bonus provisions, each of the employees had been previously awarded fixed options and incentive based options as previously reported in the company's Form 8-K filed on Dec. 14, 2007. All of the agreements contain a covenant not to compete during the term of employment and for one year thereafter in the areas of the business of the company. To enforce the covenant, the company is required to tender the sums that would otherwise be due to the employee (one year's base compensation and fringe benefits as severance plus any other sums owing to the employee) within 30 days following termination of employment. If employment is terminated for "cause," the amount to be paid to enforce the covenant would be one-half of the amount that would otherwise be payable if termination was other than for cause. The employment agreement for Jim McDevitt is substantially similar to the employment agreements, as amended, for each of Messrs. Shutt, King and Pollan, provided that it does not call for any bonuses with respect to 2007 and does not include any of the performance-based or time-based options that were awarded on the inception of employment to them. Mr. McDevitt is entitled to participate in all other benefits or programs of the company that are available generally to other company executives. It provides that Mr. McDevitt would be entitled to one year's severance in the event of termination of employment by him with "good reason" or by the company "without cause." In the event of a change in control, the agreement provides that if termination of employment is within six months following such a change in control and if Mr. McDevitt would otherwise have the right to terminate his employment for good cause, then he would be entitled to additional severance compensation. 2007 Long-Term Incentive Plan On Dec. 31, 2007, the company adopted a long-term incentive plan for providing stock options, stock awards and other equity based compensation awards to its employees and other persons assisting the company. Up to 5,000,000 shares of Common Stock are issuable under the Plan. As of the date of adoption of the Plan, no awards of Common Stock have been made under the Plan. The Plan is to be administered by the company's Compensation Committee or, in its absence, the Board of Directors. Awards can have a term of up to ten years from the date of grant. About Capital Growth Headquartered in Chicago, Capital Growth Systems Inc. (OTC BB: CGSY.OB) has three primary lines of revenue. The first line of revenue is from network and circuits business, which is broken down between enterprise and wholesale circuits and strategic networks. The second line of revenue relates to the company's services offerings, which includes both remote monitoring services and professional services. The third line of revenue is sales generated from Magenta 20/20's global pricing and quotation software. * * * Plante & Moran PLLC, in Elgin, Illinois, expressed substantial doubt about Capital Growth Systems Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses, negative cash flows from operations, and net working capital deficiency. Capital Growth Systems Inc. reported a net loss of $12.4 million on total revenues of $4.4 million in the third quarter ended Sept. 30, 2007, compared with a net loss of $3.4 million on total revenues of $89,260 in the same period last year. At Sept. 30, 2007, the company's consolidated balance sheet showed $30.1 million in total assets, $23.5 million in total liabilities, and $6.6 million in total shareholders' equity. CLAYTON WILLIAMS: Provides Update on Business Operations -------------------------------------------------------- Clayton Williams Energy Inc. said in a press statement that it was continuing completion activities on the Big Bill Simpson No. 1, a Bossier wildcat test in Leon County, Texas. The company has perforated and stimulated one group of target sands at a vertical depth of 19,200 feet and is evaluating these sands which appear to be marginally productive. The company plans to conduct similar completion operations on the remaining intervals. To date, the company has incurred approximately $12 million of drilling and completion costs, net to its 70% working interest. The company is also continuing completion activities on the Margarita No. 1 in Robertson County, Texas in the upper Bossier formation. As previously announced, the targeted middle Bossier formation was not present in this well. To date, the company has incurred $12.7 million in drilling costs, net of $2.6 million of costs which were charged to expense in the third quarter related to the lack of the middle Bossier formation. The company owns 100% of the working interest in this well. Clayton W. Williams, Jr., President stated, "We remain optimistic about our Bossier acreage. Currently we have 142,000 net acres under lease in the East Texas Bossier play, of which approximately 70,000 net acres are held by production. We also have 170,000 net acres under lease in the Louisiana Bossier play." Exploration Pact The company also said that it had entered into an exploration agreement with an industry partner covering six of the company's exploratory prospects in South Louisiana. The terms of the agreement obligate the industry partner to commence drilling up to six wells. The partner will bear 85% of all drilling costs incurred to casing point and 50% of all subsequent costs to earn a 50% working interest. Texas Assets Sale As reported in the Troubled Company Reporter on Nov. 13, 2007, Clayton Williams closed the sale of all of its producing and nonproducing acreage in Pecos County, Texas to an undisclosed buyer for $21 million. The company expected to record a gain of approximately $13 million in the fourth quarter of 2007 in connection with the sale. Proceeds from the sale were used to repay indebtedness on the company's revolving credit facility. About Clayton Williams Energy Inc. Headquartered in Midland, Texas, Clayton Williams Energy Inc. (NasdaqGM: CWEI) -- http://www.claytonwilliams.com/-- is an independent energy company. * * * As reported in the Troubled Company Reporter on Dec. 4, 2007, Moody's Investors Service changed the rating outlook of Clayton Williams Energy Inc. to negative from stable. CWEI currently has a B2 Corporate Family Rating and a B3 rating on its 7.75% Senior Notes due 2013. The change in outlook primarily reflects Moody's concerns about CWEI's high leverage and limited prospects for near-term debt reduction but also concerns about the riskiness of its exploration and development program given its relatively small size and leveraged balance sheet. Moody's also changed CWEI's liquidity rating to SGL-3 from SGL-2. COMPUSA INC: To Close a Hundred Stores Nationwide by March ---------------------------------------------------------- CompUSA Inc. will shut down more than a hundred stores located all across the country in hopes to focus on online selling, Augusta Chronicle reports. The Chronicle adds, citing an Augusta store manager, that the date of the closures could not be determined yet however CompUSA's Dallas store is to be closed by March. Meanwhile, a U.S. Worker Adjustment and Retraining Notification Act notice filed with the Arizona Department of Economic Security states that the company's store in Tucson will close by the end of March affecting some 50 workers, The Arizona Daily Star says. Sale of Assets to Systemax As reported in the Troubled Company Reporter on Jan. 8, 2008, CompUSA entered into a definitive agreement with Systemax Inc., pursuant to which Systemax will acquire CompUSA's selected assets and retail stores. Completion of the transaction is subject to customary closing conditions and is expected to close at several dates throughout the first quarter of 2008. Under the agreement, Systemax will purchase the CompUSA brand, trademarks and e-commerce business, and many as 16 CompUSA retail outlets. As the select CompUSA retail stores are acquired, the stores will be integrated into TigerDirect's existing retail operating environment. The direct costs of the acquisition will depend on the specific retail store locations that are taken over and are expected to approximate $30 million. The indirect costs of the acquisition will be incremental to the direct costs. About Systemax Inc. Systemax Inc. (NYSE:SYX) - http://www.systemax.com/-- sells personal computers, computer supplies, consumer electronics and industrial products through a system of branded e-commerce web sites, direct mail catalogs, relationship marketers and retail stores in North America and Europe. It also manufacturers and sells personal computers under the Systemax and Ultra brands and develops and markets ProfitCenter Software, a web-based, on-demand application for multi-channel direct marketing companies. TigerDirect - www.tigerdirect.com/ -- is a subsidiary of Systemax. The company serves the needs of personal and business computer users, selling consumer electronics, computers, digital media technology and peripherals via retail stores, catalog and Internet channels. About CompUSA Inc. Headquartered in Dallas, Texas, CompUSA Inc. is a retailer and reseller of personal computers and related products and services, principally through its Computer Superstores located throughout the United States. Although retail sales through its Computer Superstores are the largest component of the company's business, its stores also fulfill the principal marketing, product, and service functions of the company's other businesses, including direct sales to corporate, government, and education customers and training and technical services. * * * As reported in the Troubled Company Reporter on Dec. 11, 2007, CompUSA was acquired by Gordon Brothers Group LLC and Gordon Brothers will initiate an orderly wind-down of CompUSA's retail store operations. The restructuring firm was engaged in discussions with various parties regarding the sale of certain assets. CompUSA's 103 retail stores were opened and staffed during the 2008 holiday season, and offered consumers bargains on computer and electronic products as part of store closing sales. CONSECO FINANCE: S&P's Cuts Rating on Class B2 Certificates to B ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the class B2 certificates for home equity loans issued by Conseco Finance Home Equity Loan Trust 2002-B to 'B' from 'BB'. Concurrently, S&P affirmed its ratings on the remaining five classes from this transaction. The downgrade reflects a reduction in credit enhancement as a result of monthly realized losses. As of the December 2007 remittance date, cumulative realized losses, as a percentage of the original pool balance, were 5.66%. Monthly average losses over the past six months were $158,333, and they outpaced excess interest by approximately 1.72x. Overcollateralization was 20 basis points below target. The affirmations reflect sufficient credit enhancement available to support the current ratings. The classes with affirmed ratings have actual and projected credit support percentages that are in line with their original levels. Subordination, overcollateralization, and excess spread provide credit support for this series. The collateral for this transaction originally consisted primarily of fixed-rate, conventional, fully amortizing, closed-end home equity loans secured by first, second, or more junior mortgages on one- to four-family residential properties. Rating Lowered Conseco Finance Home Equity Loan Trust 2002-B Certificates for home equity loans Rating ------ Class To From ----- -- ---- B2 B BB Ratings Affirmed Conseco Finance Home Equity Loan Trust 2002-B Certificates for home equity loans Class Rating ----- ------ A3, AIO AAA M1 AA M2 A B1 BBB COUNTRYWIDE ALTERNATIVE: Fitch Holds 'BB' Rating on Cl. M-10 Loans ------------------------------------------------------------------ Fitch Ratings has affirmed these classes of mortgage pass-through certificates from Countrywide Alternative Loan Trust, series 2007- OA4: CWALT 2007-OA4 -- Class A at 'AAA'; -- Class M-1 at 'AA+'; -- Class M-2 at 'AA'; -- Class M-3 at 'AA-'; -- Class M-4 at 'A+'; -- Class M-5 at 'A'; -- Class M-6 at 'A-'; -- Class M-7 at 'A-'; -- Class M-8 at 'BBB+'; -- Class M-9 at 'BBB'; -- Class M-10 at 'BB'. The affirmations, affecting approximately $641.2 million of outstanding certificates, reflect a satisfactory relationship between credit enhancement and future loss expectations. The collateral of the above transaction primarily consists of 30- and 40-year negative amortization mortgage loans extended to Alt-A borrowers and are secured by first liens, primarily on one- to four-family residential properties. As of the December 2007 distribution date, the above transaction is seasoned nine months and the pool factor is approximately 89%. Countrywide Home Loans Servicing, Inc. (rated 'RMS2+', Rating Watch Evolving by Fitch) is the master servicer for this transaction. COUNTRYWIDE HOME: S&P Cuts Rating on Class B-1 Certs. to 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on the class M-2 and B-1 asset-backed certificates from Countrywide Home Loan Trust 2003-SD2 and removed the rating on class B-1 from CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the three remaining classes from the transaction. The lowered ratings reflect adverse collateral performance that has caused monthly losses to exceed monthly excess interest. As of the January 2008 remittance period, cumulative losses, as a percentage of the original pool balance, were 2.63%. The three- month average for monthly losses was $116,778, while monthly excess interest was $37,911. Overcollateralization (O/C) was 0.52% of the original pool balance, which is below its target of 0.66%. The delinquency pipeline for this deal 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) were 10.59% of the current pool balance as of the January 2008 remittance. This deal is seasoned 55 months. S&P affirmed its ratings on the remaining classes based on loss coveragepercentages that are sufficient to maintain the current ratings despite the negative trends in the underlying collateral of this deal. Subordination, O/C, and excess spread provide credit support for the series. The collateral for this transaction primarily consists of reperforming, adjustable- and fixed-rate mortgage loans secured by first liens on one- to four-family residential properties. Rating Lowered Countrywide Home Loan Trust 2003-SD2 Asset-backed certificates Rating ------ Class To From ----- -- ---- M-2 BBB A Rating Lowered and Removed From CreditWatch Negative Countrywide Home Loan Trust 2003-SD2 Asset-backed certificates Rating ------ Class To From ----- -- ---- B-1 B BBB/Watch Neg Ratings Affirmed Countrywide Home Loan Trust 2003-SD2 Asset-backed certificates Class Rating ----- ------ A-1 AAA A-2 AAA M-1 AA CYBERHOME ENT: Extends Brand Package Bid Deadline to February 25 ---------------------------------------------------------------- Responding to bidders' requests, John T. Kendall, Chapter 7 trustee of CyberHome Entertainment Inc., has agreed to revise the deadline for submitting offers for the CyberHome brand package to Feb. 25, 2008. As reported in the Troubled Company Reporter on Jan. 16, 2008, the Chapter 7 Trustee had set 5:00 p.m., Pacific Standard Time on Jan. 24, 2008, as the deadline for parties to submit offers for the CyberHome brand package. With Court approval, the Trustee retained Cerian Technology Ventures LLC, an intellectual property advisory firm, to assist in the sale of the brand. Once the largest consumer electronics brand in its category by volume sales, CyberHome was named "best seller" by Amazon.com and other retailers. Over a hundred million LCD televisions, personal media players, home theater systems and DVD players were sold annually under the CyberHome brand. The brand is well known for dependable and affordable consumer electronics devices in the US, Canada, Europe, South America, Asia and the Middle East. Additionally, the CyberHome brand enjoys strong protection under trademarks filed in fifty seven countries, and is accompanied by the venerable cyberhome.com domain name. Following a royalty dispute, CyberHome Entertainment Inc. was forced to file for bankruptcy. The "CyberHome" brand, the company's most prized asset, is available for acquisition. "We are excited about the CyberHome brand, as it will allow its new owner immediate recognition among many millions of consumers around the globe. CyberHome Entertainment took its brand equity very seriously and has invested heavily in advertising and promoting the CyberHome brand, as well as in protecting it. The result is a brand that is well recognized for dependable and affordable consumer electronics in many countries worldwide, including the United States, Canada, Mexico, Germany, the United Kingdom, France, Italy, Austria, Belgium, Switzerland, Poland, the Czech Republic, Romania, Lithuania, Brazil, Argentina, Australia, Japan and India. This is an excellent opportunity for a company to own a brand that allows for immediate recognition and access to consumers," said Brian Sagi, Chief Executive Officer of Cerian Technology Venture, LLC, the intellectual property advisory firm which is assisting the trustee with the sale of the brand. Headquartered in Fremont, California, CyberHome Entertainment Inc. is a high volume vendor of consumer electronics, equipment and related products. On Sept. 5, 2006, the Debtor filed a voluntary relief under Chapter 7 of the Bankruptcy Code in the Northern District of California. DELPHI CORP: Judge Drain Wants Executive Bonuses Reduced -------------------------------------------------------- As widely reported, the Honorable Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York said he will approve Delphi Corp. and its debtor-affiliates' First Amended Joint Plan of Reorganization on the condition that the total payout of cash bonuses to top executives is reduced. "I am prepared to enter the confirmation order, provided the management compensation plan is changed," Judge Drain said at the confirmation hearings, which began Jan. 17, 2008. Reuters reports the Court wants the emergence bonus for Delphi's officers reduced to $16.5 million from the $87.9 million that Delphi had proposed to award to 500 managers upon emergence. But the United Auto Workers and the International Union of Electronic Workers-Communications Workers of America objected to payments, citing among other things, that while unionized Delphi employees suffered pay-cuts, the managers, who are already adequately compensated, are given generous bonuses. The management compensation plan seeks to grant an $8.3 million "performance payment" to Executive Chairman Robert Miller; and a $5.3 million cash emergence payment to Chief Executive Officer Rodney O'Neal. Delphi aims to emerge from Chapter 11 by the end of first quarter of 2008. Delphi, however, has yet to secure the $6.1 billion exit financing to pay claims and fund its post-bankruptcy operations. According to The Associated Press, a Delphi executive said that the company expects to obtain a commitment for $4.5 billion of the financing by Jan. 23, 2008, but there has been no indication whether the company is close to securing the loans. Delphi told the Court that the First Amended Plan satisfies the conditions for confirmation under Section 1129 of the Bankruptcy Code. It noted that the Plan has been approved by 81% of 4,000 creditors entitled to vote on the Plan. According to Bloomberg News, Delphi resolved or had overruled objections to earlier changes to the Plan, including those triggered by a $2.55 billion investment in Delphi by a group of investors led by Appaloosa Management LP. Delphi, Bloomberg News reports, said that Davidson Kempner Capital Management LLC, Whitebox Advisors LLC and other bondholders have agreed to withdraw their objections, in exchange for, among other things, payment of the group's legal fees up to $5 million. About Delphi Corp. 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. 108; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELTA FUNDING: S&P Junks Rating on Class M-2 Certs. From 'B' ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on the class M-1 asset-backed certificates from Delta Funding Home Equity Loan Trust's series 1999-3 and on the class M-2 certificates from series 2000-3. At the same time, S&P affirmed its ratings on the remaining classes from various Delta Funding Home Equity Loan Trust transactions, including series 1999-3 and 2000-3. The lowered ratings reflect: -- Monthly net losses that have consistently exceeded monthly excess interest cash flow; -- The complete depletion of overcollateralization (O/C) for series 1999-3 and 2000-3; and -- Severe delinquencies (90-plus days, foreclosures, and REOs) for series 1999-3 and 2000-3 transactions totaling $13.517 million and $2.071 million, respectively, as of the December 2007 remittance period. The affirmations reflect the stable collateral performance as of the December 2007 remittance period. Current and projected credit support percentages are sufficient to support the ratings at their current levels. Subordination, excess interest, and O/C provide credit support for the transactions. Generally, the senior certificates receive additional credit support from a 'AAA' rated bond insurance provider. The collateral for these transactions consists of either fixed- or adjustable-rate home equity first- and second-lien loans secured by one- to four-family residential properties. Ratings Lowered Delta Funding Home Equity Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 1999-3 M-1 AA AA+ 2000-3 M-2 CCC B Ratings Affirmed Delta Funding Home Equity Loan Trust