T R O U B L E D C O M P A N Y R E P O R T E R Monday, January 28, 2008, Vol. 12, No. 23 Headlines ABDOULIE FAAL: Voluntary Chapter 11 Case Summary ABFC TRUST: Two Classes Get S&P's Junk Ratings on Delinquency ADVANCED MICRO: Weak Performance Cues Fitch to Cut IDR to B- AIRBORNE HEALTH: Moody's Chips Rating to B3 on Small Revenue Base ALANCO TECH: Completes Private Offering of Series A Pref. Shares ALANCO TECH: Posts $1.5 Million Net Loss in Fiscal 2008 First Qtr. ALLIS-CHALMERS: Signs $437.8MM Merger Deal with Bronco Drilling ALLIS-CHALMERS: Bronco Merger Won't Affect S&P's B Credit Rating ALPHA OMEGA: Court Approves Sale of Assets to Buyer Consortium ASARCO LLC: Parent Pledges to Remediate El Paso Smelter ATLANTIS PLASTICS: Taps Houlihan Lokey as Financial Advisor ATLANTIS PLASTICS: S&P Retains Negative CreditWatch on Ratings AVIS BUDGET: Moody's Holds Ratings and Revises Outlook to Negative AXCAN PHARMA: Shareholders Approve TPG Capital Deal AXCAN PHARMA: S&P Puts Corporate Credit Rating at B+ AXIUM INTERNATIONAL: Unit to Sell All Assets to MPS Group BARNERT HOSPITAL: Facing Two DOJ-Supported Whistleblower Cases BAYONNE MEDICAL: Facing Two DOJ-Supported Whistleblower Cases BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says BUFFETS HOLDINGS: Hires Epiq as Claims and Noticing Agent BUFFETS HOLDINGS: S&P Withdraws 'D' Rating on Chapter 11 Filing CAPITAL AUTO: S&P Places Preliminary BB Rating on Class D Notes CARL HASTINGS: Case Summary & 42 Largest Unsecured Creditors CHRYSLER LLC: Invests $27 Million in Toledo Machining Plant CIENA CORP: Earns $30.4 Million in Fourth Quarter Ended Oct. 31 COLUMBUS MCKINNON: Earns $10 Mil. in Quarter ended December 30 COMM 2005-FL11: Fitch Affirms Low-B Ratings on $77.7 Mil. Certs. CONTINENTAL AIRLINES: Pilots Prepare for Merger Potential CRC HEALTH: Moody's Keeps B2 Rating Reflecting Stable Leverage CSFB ABS: Realized Losses Prompt S&P to Junk Class M-2's Rating CSK AUTO CORP: Posts $5.8 Mil. Net Loss in Quarter Ended Nov. 4 DELPHI CORP: Bankruptcy Court Confirms Chapter 11 Plan DELPHI CORP: To Sell Steering Business to Platinum Equity DELTA AIR: Reports 4TH Quarter & Full Year 2007 Results DENNIS CUNNINGHAM: Case Summary & 16 Largest Unsecured Creditors E*TRADE FINANCIAL: Posts $1.7 Billion Net Loss in 4th Qtr. 2007 ELLIOTT HOLDING: PNC Bank Demands Payment of $3 Million Balance ENSEMBLE CHIMES: Selling Substantially All Assets to MPS Group FERTINITRO FINANCE: Fitch Affirms 'CCC' Rating and Removes Watch FORD MOTOR: Auto Credit Arm Earns $775 Million in 2007 FORD MOTOR: Inks Final Pact for Sale of ACH's Driveshaft Business FORD MOTOR: Posts $2.7 Billion Net Loss in Fiscal Year 2007 FREEDOM COMMS: Revenue Drop Cues S&P's B+ Corporate Credit Rating GETTY IMAGES: S&P Holds Ratings on Venture of Strategic Options GOODYEAR TIRE: European Unit to Reduce Production at Two Factories GRANDE COMMS: Posts $13.6 Million Net Loss in 2007 Third Quarter H&H MEAT: Can Hire Aguirre & Patterson as Real Estate Appraiser H&H MEAT: Court Approves Use of Wells Fargo's Cash Collateral HAYWOOD COMPANY: Case Summary & Seven Largest Unsecured Creditors HYPPCO FINANCE: S&P Withdraws Rating Following Paydown of Notes IMPAC SECURED: S&P Affirms 'BB' Rating on Class B-1 Certificates IMPATH INC: IRS Recommends Approval of $22.65 Million Tax Refund INDYMAC BANCORP: Fitch Cuts IDR to BB from BBB- with Neg. Outlook JED OIL: Inks Letter of Intent for $41.5 Million Loan Facility JERROLD LAMBERT: Case Summary & 16 Largest Unsecured Creditors JUNE TRONE: Case Summary & Largest Unsecured Creditor L TERSIGNI: U.S. Trustee Wants Hugh M. Ray as Examiner LENNAR CORP: Posts $1.3 Billion Net Loss in 4th Qtr. Ended Nov. 30 LEVITT AND SONS: Can Borrow $460,000 from AmTrust Loan Facility LEVITT AND SONS: Court Denies Groveland VEC's Request for Funding LEVITT AND SONS: U.S. Trustee Appoints Deposit Creditors Committee LIONEL LLC: Exclusive Plan-Filing Period Extended to March 31 LIVE NATION: Closes North American Theater Biz Sale to Key Brand MD LUCHSINGER: Case Summary & 16 Largest Unsecured Creditors MEDIANEWS GROUP: S&P Slices Debt Rating to B Due to High Leverage MEGA BRANDS: Posts $11 Million Net Loss in 2007 Third Quarter MICHAEL CERAMI: Case Summary & 19 Largest Unsecured Creditors MINDREADY SOLUTIONS: Files for Bankruptcy; Directors Leave Posts MORGAN STANLEY: S&P Upgrades Ratings on Three Certificate Classes MOVIE GALLERY: Blockbuster Not Considering Acquisition MOVIE GALLERY: Landlords Opposes Disclosure Statement Approval MOVIE GALLERY: Panel Wants to Extend Deadline to Challenge Liens MPS GROUP: Wins Auction for Assets of Ensemble Chimes NETBANK INC: Taps Kurztman Carson as Claims Agent NETBANK INC: Wants Until February 25 to File Chapter 11 Plan NOMURA ASSET: S&P Lowers Ratings on Two Classes to Low-B POPE & TALBOT: Auction of Remaining Wood Products Business Set POPE & TALBOT: Pulp Business Amended Bidding Procedures Approved POPE & TALBOT: PwC Recommends Extension of Stay Period to Feb. 15 PROPEX INC: Gets Interim OK to Access BNP Paribas' Cash Collateral PROPEX INC: Wants Schedules Filing Deadline Extended to April 2 QUEBECOR WORLD: Bankruptcy Won't Affect Quebecor Inc. and Units QUEBECOR WORLD: Taps Richard Kibbe as Conflicts Counsel QUEBECOR WORLD: Wants Donlin Recano as Claims and Noticing Agent RADIANT ENERGY: Completes Debt-to-Equity Swap with Two Companies RADIATION THERAPY: S&P's Retains Negative Watch on 'BB-' Rating RADNET INC: Sept. 30 Balance Sheet Upside-Down by $54.1 Million RADNET MANAGEMENT: S&P Holds Junk Rating on $60 Million Add-on RALI TRUST: Two Classes Acquire S&P's Junk Ratings RELLOR GROUP: Voluntary Chapter 11 Case Summary RIVERCHASE COUNTRY: Court Approves Chapter 11 Reorganization Plan ROBSTOWN CITY: Moody's Holds Ba1 Rating with Positive Outlook ROCKFORD PRODUCTS: Sells Selected Assets to BlackEagle Partners RON GOLDSTEIN: Case Summary & 16 Largest Unsecured Creditors SEARS HOLDINGS: Fitch Holds 'BB' Ratings with Negative Outlook SHARPS CDO: S&P Revises Two Ratings; Keeps Two Junk Ratings STANLEY-MARTIN: Weak Market Conditions Cue S&P's Rating Cuts SUN MICROSYSTEMS: Earns $260 Million in 2nd Quarter Ended Dec. 30 TELTRONICS INC: Sells Telident 911 Assets to Amcom Software TELTRONICS INC: Sept. 30 Balance Sheet Upside-Down by $4.4 Million TEMPUR-PEDIC: Earns $39.93 Million in Quarter Ended December 31 TENNECO INC: Posts $72 Mil. Net Loss in Qtr. Ended December 31 TOMMY THOMPSON: Voluntary Chapter 11 Case Summary TERWIN MORTGAGE: High Delinquencies Cue S&P's Rating Downgrades TERWIN MORTGAGE: S&P Ratings on 62 Classes Tumble to 'D' TOWERS OF CHANNELSIDE: Case Summary & 20 Largest Unsec. Creditors TOWNSEND CONSTRUCTION: Representatives Fail to Attend Meeting TRES PALACIOS: Moody's Assigns B1 Corporate Family Rating TRW AUTOMOTIVE: Earns $23 Million in Third Quarter Ended Sept. 28 US AIRWAYS: Releases Fourth Quarter 2007 Financial Results WACHOVIA AUTO: Fitch Puts 'BB-' Rating on $14.97MM Class E Trust WACHOVIA AUTO: S&P Assigns 'BB-' Rating on $14.97 Mil. Notes WELLCARE HEALTH: CEO, CFO and General Counsel Resign from Posts * Chadbourne & Parke Expands London Office for Staff Additions * Chapman and Cutler Appoints Co-Chairmen of Public Finance * Jay Reisinger & Thomas Farrell Joins Dreier LLP as Partners * Montgomery Brings In Joseph O'Neil to Aid Bankruptcy Practice * Homeowners Cry Foul on Fidelity National's Hidden Legal Charges * Washington State Bankruptcy Filings Ups 33% * BOND PRICING: For the Week of Jan. 21 - Jan. 25, 2008 ********* ABDOULIE FAAL: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Abdoulie Madikay Faal Binneh Bayo Faal 5505 Monarch Birch Drive Apex, NC 27539-5747 Bankruptcy Case No.: 08-00451 Chapter 11 Petition Date: January 23, 2008 Court: Eastern District of North Carolina (Wilson) Judge: A. Thomas Small Debtor's Counsel: Travis Sasser, Esq. 875 Walnut Street, Suite 342 Cary, NC 27511 Tel: (919) 319-7400 Fax: (919) 657-7400 Total Assets: $500,000 to $1 Million Total Debts: $1 Million to $10 Million The Debtor did not file a list of its 20 largest unsecured creditors. ABFC TRUST: Two Classes Get S&P's Junk Ratings on Delinquency ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on two classes of asset-backed certificates issued by ABFC Trust's series 2005-HE1 and 2005-WF1. In addition, S&P placed its ratings on four classes on CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the remaining 22 classes from these transactions. The downgrades reflect an increasing amount of severe delinquencies (90-plus days, foreclosures, and REOs) relative to the available credit support for each downgraded class. As of the December 2007 remittance date, severe delinquencies were approximately $40,734,000 for series 2005-WF1 and approximately $85,900,000 for series 2005-HE1, up from $33,235,000 and $63,272,000, respectively, in January 2007. Current severe delinquencies are 6.9x (series 2005-WF1) and 9.6x (series 2005- HE1) greater than the overcollateralization amount available to these classes. S&P placed its ratings on classes B-1 and B-2 from both transactions on CreditWatch negative due to the relative amount of credit support for these classes in relation to severe delinquencies. S&P will continue to monitor these classes and will lower the ratings if projected credit enhancement continues to erode. 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 these transactions. The collateral for these transactions originally consisted primarily of fully amortizing, fixed- and adjustable-rate mortgage loans secured by first and second liens on one- to four-family residential properties. Ratings Lowered ABFC Trust Rating ------ Series Class To From ------ ----- -- ---- 2005-WF1 B-3 CCC BB 2005-HE1 B-3 CCC B Ratings Placed on CreditWatch Negative ABFC Trust Rating ------ Series Class To From ------ ----- -- ---- 2005-WF1 B-1, B-2 BB+/Watch Neg BB+ 2005-HE1 B-1 BB+/Watch Neg BB+ 2005-HE1 B-2 BB/Watch Neg BB Ratings Affirmed ABFC Trust Series Class Rating ------ ----- ------ 2005-WF1 A-1, A-2B, A-2C AAA 2005-WF1 M-1 AA+ 2005-WF1 M-2 AA 2005-WF1 M-3 AA- 2005-WF1 M-4, M-5 A+ 2005-WF1 M-6 A 2005-WF1 M-7 A- 2005-WF1 M-8 BBB+ 2005-WF1 M-9 BBB 2005-WF1 M-10 BBB- 2005-HE1 M-1 AA+ 2005-HE1 M-2 AA 2005-HE1 M-3 AA- 2005-HE1 M-4 A+ 2005-HE1 M-5 A 2005-HE1 M-6 A- 2005-HE1 M-7 BBB+ 2005-HE1 M-8 BBB 2005-HE1 M-9 BBB- ADVANCED MICRO: Weak Performance Cues Fitch to Cut IDR to B- ------------------------------------------------------------ Fitch has downgraded these ratings on Advanced Micro Devices Inc.: -- Issuer Default Rating to 'B-' from 'B'; and -- Senior unsecured debt to 'CCC'/RR6 from 'CCC+/RR6'. The Rating Outlook remains Negative. Approximately $4.1 billion of debt securities are affected by Fitch's actions. The downgrade and Negative Outlook mainly reflect Fitch's expectations that AMD's: -- operating performance, which was significantly weaker than expected over the last several quarters due to a combination of a key product delay and Intel Corp.'s strengthened product portfolio, will not meaningfully improve over the near-term. For 2008, Fitch believes AMD will benefit from anticipated microprocessor unit growth, a refreshed product portfolio, and lower fixed costs after having restructured operations during 2007. Nonetheless, Fitch believes average selling prices will remain pressured, driven by Intel's low-cost manufacturing footprint, sales mix shift toward lower-priced models in emerging markets and desktops for newer original equipment manufacturer relationships, constraining potential profitability expansion. -- financial flexibility will continue to be limited by the company's modest liquidity position (consisting solely of $1.9 billion of available cash, an amount that could be augmented by additional equipment sales during 2008), particularly with the company's limited intermediate-term profitability prospects and significant planned capital expenditures of $1.1 billion in 2008. Fitch believes AMD will burn more than $500 million in 2008 (compared to $1.9 billion usage in 2007) unless the company cuts capital spending, either via postponing discretionary investments and/or moving forward with an 'asset light' strategy. Fitch believes that additional negative rating actions would likely occur if: -- AMD depletes its current cash balance at a faster than expected pace; or -- profitability contracts further. The ratings could be stabilized if over the next few quarters AMD: -- Steadily improves profitability -- bolsters financial flexibility by obtaining additional external funding. Ratings concerns continue to center on: -- Significant product technology risk associated with the MPU market, resulting in cyclical operating results. However, given its relatively weak financial flexibility and limited market share, Fitch believes AMD's ability to withstand technology roadmap missteps is limited. -- Intel's meaningful manufacturing technology advantage over AMD, driven by capital expenditures consistently in excess of $5 billion, effectively requiring AMD to continue investing aggressively to upgrade its manufacturing facilities; and -- expectations that AMD's debt levels will remain high, driven by the company's investment requirements, thereby constraining AMD's financial flexibility over the long- term. The ratings are supported by AMD's: -- expectations for solid MPU unit growth over the next couple of years; -- strengthened and expanding relationships with all personal computer original equipment manufacturers, most recently including Toshiba Corporation ('BBB/F2' with a Stable Outlook by Fitch) and Dell Inc. ('A/F1'; Stable Outlook), driven in part by AMD's enhanced ability to provide platform products to the marketplace following the acquisition of ATI Technologies in October 2006; and -- AMD's staggered and longer-term debt maturities, as well as its now proven willingness to cut capital spending in the face of less favorable market conditions. At Sept. 29, 2007, total debt was $5.3 billion and consisted of: -- $1.0 billion of secured debt related to Fab 36, including $866 million of Fab 36 Secured Euro Term Loan due 2011; -- $1.5 billion 5.75% convertible senior unsecured notes due 2012; -- $2.2 billion 6% senior unsecured convertible notes due 2015; -- $390 million 7.75% senior unsecured notes due 2012; and -- other debt, including capital leases, of approximately $242 million. The Recovery Ratings reflect Fitch's belief that AMD would be liquidated rather than reorganized in a bankruptcy scenario, given Fitch's estimates that the company's projected liquidation value of $1.1 billion would exceed a reorganization value of only $615 million, driven by the meaningful deterioration of AMD's operating EBITDA over the past year. In estimating liquidation, Fitch applies advance rates of 80%, 20%, and 10%, respectively, to AMD's accounts receivables, inventories, and property, plant, and equipment balances as of the quarter ended Dec. 31, 2007. Fitch arrives at an adjusted reorganization value of $1.0 billion after subtracting administrative claims. Based upon these assumptions, and given that approximately $1.0 billion of unrated borrowings related to Fab 36 and capital leases are essentially secured, minimal recovery (0-10%) would be available for the approximately $4.2 billion of senior unsecured debt, resulting in 'RR6' ratings. AIRBORNE HEALTH: Moody's Chips Rating to B3 on Small Revenue Base ----------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Airborne Health, Inc. to B3 from B2. Although the company has built a widely accepted product in the cold and flu prevention space with its effervescent health formula, performance below Moody's expectations in recent quarters indicates that the brand may be maturing. The action also follows indications that weakness associated with unseasonably warm weather this winter has had a negative effect on the category which, in Airborne's case, could lead to covenant and associated liquidity constraints. The ratings are under review for a further downgrade pending resolution of Moody's covenant concerns. The ratings take into account the company's relatively small revenue base, undiversified product offering, the potential effects of an economic slowdown on consumer spending, dependence on larger retail customers for the distribution of its products amidst intense competition from a variety of branded and private label products. The downgrade also takes into account the fact that, although bank loan financial covenants were amended on Oct. 4, 2007, these appear to be currently set at levels which are likely to create compliance issues on an ongoing basis. Although financial covenants provide a certain degree of protection for the lenders, absent more substantive amendments they are likely to continue to divert management attention from running the business. The ratings also take into account delays in finalizing the audited financials for the April 30, 2007 fiscal year. Partially offsetting these risks are credit metrics that would normally place the company in a higher rating category: These include Moody's expectations for the fiscal year which ends April 30, 2008 of adjusted debt to EBITDA of the order of four times, adjusted EBITDA interest coverage comfortably in excess of two times, and adjusted funds from operations to debt of about 10%, with minimal capital expenditures. Moody's also believes that the Airborne brand continues to enjoy broad support among its target consumer segments. There are also indications that brand awareness among the general population remains lower for Airborne than for other, more established, products in the category and this leaves room for further growth. Moody's took these rating actions: -- Downgraded the Corporate Family Rating to B3 from B2; -- Downgraded the Probability of Default Rating to Caa1 from B3; -- Downgraded the $20 million first lien secured revolving credit facility due 2012 to B3 (LGD 3, 34%) from B2 (LGD 3, 35%); -- Downgraded the $152 million first lien secured term loan due 2012 to B3 (LGD 3, 34%) from B2 (LGD 3, 35%). The ratings are under review for a further downgrade. Airborne Health, Inc, headquartered in Bonita Springs, Florida, markets the effervescent health formula that is designed to strengthen the immune system. The company's products are distributed nationwide through about 70,000 supermarkets, drugstores, discounters, club stores, and other retail locations. Airborne generated net revenue of $142 million for the twelve months ended Oct. 31, 2007. ALANCO TECH: Completes Private Offering of Series A Pref. Shares ---------------------------------------------------------------- Alanco Technologies Inc. disclosed in a regulatory filing with the Securities and Exchange Commission on Jan. 22, 2008, that it has completed a private offering to accredited investors of 1,425,500 Units at a unit price of $1.50, each unit consisting of one share of its Series A Convertible Preferred Stock together with a 5-year warrant to purchase one share of the company's Class A Common Stock at a price of $1.75 per share. The Series A Convertible Preferred Stock is convertible into 1.2 shares of the company's Class A Common Stock. The company received $2,108,200, net of expenses, from the offering. About Alanco Technologies Headquartered in Scottsdale, Arizona, Alanco Technologies, Inc. (NASDAQ: ALAN) -- http://www.alanco.com/-- provides wireless tracking and asset management solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries. Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 4, 2007, Semple, Marchal & Cooper LLP, in Phoenix, Arizona, expressed substantial doubt about Alanco Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2007, and 2006. The auditing firm reported that the company incurred significant losses from operations, anticipates additional losses in fiscal 2008, and has insufficient working capital as of June 30, 2007, to fund the anticipated losses. During the fiscal 2008 first quarter ended Sept. 30, 2007, the company reported a net loss of approximately $1.5 million. Although the company raised approximately $4.7 million in net equity during the fiscal 2008 first quarter through the sale of Class A Common Stock, the significant losses raise doubt about the ability of the company to continue as a going concern. ALANCO TECH: Posts $1.5 Million Net Loss in Fiscal 2008 First Qtr. ------------------------------------------------------------------ Alanco Technologies Inc. reported a net loss of $1.5 million on net sales of $4.6 million for the first quarter ended Sept. 30, 2007, compared with a net loss of $770,300 on net sales of $5.1 million in the same period ended Sept. 30, 2006. The decrease in net sales resulted from the $912,800, or 22.6%, decrease in sales of the company's Wireless Asset Management segment due to a large hardware order that had initiated delivery in the first quarter of the prior fiscal year, partly offset by sales increases in the RFID Technology segment and Data Storage segments. The operating loss for the quarter was $1.3 million compared to a loss of $789,500 for the same quarter of the prior year, an increase of $449,600, or 63.3%. Net interest expense for the quarter increased to $210,500 compared to interest expense of $86,100 for the same quarter in the prior year. EBITDA for Alanco's 2008 fiscal year first quarter was a loss of $1.1 million compared to a loss of $525,600 for the same quarter of the prior fiscal year, an increase of 112.6%. Liquidity and Capital Resources The company's current ratio improved to 1.47 to 1 at Sept. 30, 2007, comared to current ratio of .97 to 1 at June 30, 2007. The improvement in current ratio at Sept. 30, 2007, versus June 30, 2007, resulted from the completion of a private offering to accredited investors whereby the company issued 2,453,900 shares and granted 3-year warrants to purchase approximately 981,600 common shares at a price of $3.00, raising approximately $4.7 million. At Sept. 30, 2007, the company had an outstanding balance of $1.5 million under a $2.0 million formula-based revolving bank line of credit agreement with interest calculated at prime plus 3%. The line of credit formula is based upon current asset values and is used to finance working capital. At Sept. 30, 2007, the company had $500,000 available under the line of credit. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed $29.7 million in total assets, $10.8 million in total liabilities, $835,600 in preferred stock, and $18.0 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?275d Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 4, 2007, Semple, Marchal & Cooper LLP, in Phoenix, Arizona, expressed substantial doubt about Alanco Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2007, and 2006. The auditing firm reported that the company incurred significant losses from operations, anticipates additional losses in fiscal 2008, and has insufficient working capital as of June 30, 2007, to fund the anticipated losses. Although the company raised approximately $4.7 million in net equity during the fiscal 2008 first quarter through the sale of Class A Common Stock, the significant losses raise doubt about the ability of the company to continue as a going concern. About Alanco Technologies Headquartered in Scottsdale, Arizona, Alanco Technologies, Inc. (NASDAQ: ALAN) -- http://www.alanco.com/-- provides wireless tracking and asset management solutions through its StarTrak Systems and Alanco/TSI PRISM subsidiaries. ALLIS-CHALMERS: Signs $437.8MM Merger Deal with Bronco Drilling --------------------------------------------------------------- Allis-Chalmers Energy Inc. and Bronco Drilling Company Inc. have entered into a definitive merger agreement providing for the acquisition of Bronco Drilling Company Inc. by Allis-Chalmers Energy Inc. for approximately $437.8 million, comprised of an aggregate of $280 million in cash; and Allis-Chalmers common stock having an aggregate value of approximately $157.8 million. The number of shares will be based on the average closing price of Allis-Chalmers common stock for a ten-trading day period ending two days prior to the closing. The combined consideration totals $16.33 per share for Bronco Drilling, a 21.8% premium to the closing price of Bronco Drilling's common stock on Jan. 23, 2008, and an 18.2% premium to the past 10 days' average closing stock price of Bronco Drilling. Allis-Chalmers has received a financing commitment for up to $350 million to cover the cash component of the merger consideration, repayment of assumed Bronco Drilling debt and transaction expenses. Allis-Chalmers and Bronco Drilling anticipate that receipt of the merger consideration will be taxable to Bronco Drilling's stockholders. The merger will result in a combined company with an enterprise value of approximately $1.4 billion. The merger agreement provides for a subsidiary of Allis-Chalmers to merge with and into Bronco Drilling, with Bronco Drilling surviving as a wholly-owned subsidiary of Allis-Chalmers. Upon completion of the transaction, it is anticipated that Allis- Chalmers' stockholders will own approximately 72.1%, and that Bronco Drilling's stockholders will own approximately 27.9% of the combined company. The board of directors of both Allis-Chalmers and Bronco Drilling have approved the merger agreement. The transaction is subject to customary conditions and regulatory approvals and the approval by stockholders of each of Allis-Chalmers and Bronco Drilling. Management Comments "We are very pleased to have reached this agreement with Allis- Chalmers and believe it presents a compelling opportunity for our stockholders," Frank Harrison, Bronco Drilling's chairman and chief executive officer, stated. "We believe the combined entity creates a unique investment opportunity for both sets of stockholders. The combined company will be a fully-integrated oilfield service company with diversified business lines, substantial international exposure and exciting growth opportunities not currently found in a company of similar size." "We are very excited about this pending acquisition that is in conformity with our strategic criteria," Micki Hidayatallah, chairman and chief executive officer of Allis-Chalmers, said. "We expect the combined company to enhance our product offering and expand our geographic footprint in the domestic and international markets. Internationally, Allis-Chalmers will increase its presence in the North African and Latin American markets." "The opportunity to deploy drilling and workover rigs to the high growing international markets is very compelling," Mr. Hidayatallah also noted. "Bronco Drilling is uniquely positioned to take advantage of this opportunity because of its in-house capability of converting and rebuilding rigs for international operations." "Although demand for land drilling and workover rigs remains strong in the international markets, there continues to be long delays in manufacturing and delivery cycles," Mr. Hidayatallah continued. "We anticipate the merged company's presence in Mexico, Libya, Argentina and Bolivia will provide a solid foundation for international expansion," Mr. Hidayatallah went on to state. "Bronco Drilling's management team has built a company in a very short time frame that has a reputation for excellence in all its operations." "The combined company will be a diversified service company that provides its domestic and international customers with skilled operators and technologically advanced equipment in a safe environment," Mr. Hidayatallah expressed. "Currently, Allis-Chalmers operates internationally in Argentina, Mexico, and Bolivia," Mr. Hidayatallah also stated. "Bronco Drilling has a 25% equity stake in a contract drilling business in Libya which will operate 33 drilling and workover rigs." "We expect the combined company to actively pursue further international opportunities after the merger," Mr. Hidayatallah said further. "We believe we will be able to provide the domestic and international markets with directional, underbalanced drilling, coil tubing, drilling and completion services together with rental equipment as the oil industry seeks to exploit conventional and unconventional resources both in the U.S. and overseas." Micki Hidayatallah will remain as chairman and chief executive officer of Allis-Chalmers following the merger. The composition of the board of directors of Allis-Chalmers will not be changed in connection with the merger. RBC Capital Markets Corporation is acting as exclusive financial advisor to Allis-Chalmers and Johnson Rice & Company LLC is acting as exclusive financial advisor to Bronco Drilling. Andrews Kurth LLP is acting as legal counsel to Allis-Chalmers and Akin Gump Strauss Hauer & Feld LLP is acting as legal counsel to Bronco Drilling. About Bronco Drilling Headquartered in Edmond, Oklahoma, Bronco Drilling Company Inc. (NASDAQ/GM:BRNC) -- http://www.broncodrill.com-- provides contract land drilling services to oil and natural gas exploration and production companies. The company operates its drilling rigs in Oklahoma, Kansas, Texas, Colorado and North Dakota. Its workover rigs are operating in Oklahoma, Texas, Kansas and New Mexico. In January 2006, the company purchased six land drilling rigs and certain other assets, including heavy haul trucks and excess rig equipment and inventory, from Big A Drilling LC. On Jan. 9, 2007, the company acquired Eagle Well Services Inc. and related subsidiaries. The purchased includes 31 workover rings, 24 of which were operating. About Allis-Chalmers Energy Headquartered in Houston, Texas, Allis-Chalmers Energy Inc. (NYSE:ALY) -- http://www.alchenergy.com-- is an oilfield services company that provides services and equipment to oil and natural gas exploration and production companies throughout the United States and internationally primarily in Argentina and Mexico. The company operates in six sectors of the oil and natural gas service industry: rental services, international drilling, directional drilling services, tubular services, underbalanced drilling services, and production services. The company's acquisitions include DLS Drilling Logistics and Services Corporation in August of 2006, Petro-Rentals Inc. in October of 2006 and Oil & Gas Rental Services Inc. in December of 2006. In October 2007, the company announced the acquisition of Rebel Rentals Inc. In November 2007, it acquired Diamondback Oilfield Services Inc. ALLIS-CHALMERS: Bronco Merger Won't Affect S&P's B Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said that the 'B' corporate credit rating for oilfield services company Allis-Chalmers Energy Inc. (B/Positive/--) will not be affected by the company's announced acquisition of Bronco Drilling Co. Inc. for $280 million of cash and approximately $158 million of Allis-Chalmers common stock. Allis-Chalmers has secured a bridge loan to finance the cash part of the acquisition. The company has not yet announced permanent financing plans, and the acquisition is not expected to close until June 2008. On a pro forma basis, Allis-Chalmers is expected to generate close to $300 million of EBITDA on a run-rate basis. If the company finances the majority of the cash portion of the acquisition with debt, debt to pro forma EBITDA would be approximately 3x. ALPHA OMEGA: Court Approves Sale of Assets to Buyer Consortium -------------------------------------------------------------- The Hon. William C. Hillman of the U.S. Bankruptcy Court for the Eastern District of Massachusetts gave Alpha Omega Jewelers, aka Lexington Jewelers Exchange Inc., approval to sell its assets to a group of buyers, Boston Business Journal reports. The Court has also approved a reduction of the prices of the assets to be disposed through a liquidation sale at all Alpha Omega stores facilitated by the new owners, Boston Journal relates. According to Boston Journal, the Natick Collection and Prudential Center stores will be reopened after the liquidation sale operating as one of the jewelry chains of Ross-Simons in Cranston, Rhode Island. Staff at Alpha Omega will be given work opportunities at Ross-Simons, Boston Journal adds. As reported in the Troubled Company Reporter on Jan. 4, 2008, the Debtor sought for protection under chapter 11 of the U.S. Bankruptcy Code calling for a public sale of the Debtor's assets on Jan. 22, 2008, with Tiger Capital Group LLC of Boston, The Gordon & Co. of Florida, and SB Capital Group of New York bidding at 70.25% of the Debtor's inventory. The former owners, Raman and Nilda Handa, who elected for the bankruptcy filing reportedly fled to India days before Christmas. Richard E. Mikels, Esq., at Mintz Levin Cohn Ferris Glovsky and Popeo who filed for bankruptcy on behalf of the missing owners, could not determine at that time the worth of the Debtor's assets and liabilities. The Debtor allegedly accumulated debts for half a year and on Dec. 22, 2007, Bank of America Corp.'s affiliate, LaSalle Business Credit, took over Alpha Omega's inventory. Mr. Mikels said that with LaSalle's financing, the Debtor's consumer programs and employee benefits will continue. About Alpha Omega Cambridge, Massachusetts-based Alpha Omega Jewelers aka Lexington Jewelers Exchange Inc. -- http://www.alphaomegajewelers.com/-- owns and manages watch retail shops. The Debtor filed for chapter 11 petition on Jan. 2, 2008 (Bankr. E.D. Ma. Case No. 08-10042). Adrienne Kotowski Walker, Esq., and Kevin J. Walsh, Esq., at Mintz, Levin, Cohn, Ferris, Glovsky and Popeo PC represent the Debtor in its restructuring efforts. The Debtor had $1 million to $100 million in assets and debts when it filed for bankruptcy. ASARCO LLC: Parent Pledges to Remediate El Paso Smelter ------------------------------------------------------- ASARCO Inc., an indirect subsidiary of Grupo Mexico, S.A.B. de C.V., will not seek to restart the copper smelter located in El Paso, Texas or seek to renew the air permit for the facility if it regains control of ASARCO LLC. ASARCO LLC, which owns the El Paso smelter, is in a Chapter 11 bankruptcy case in Corpus Christi, Texas. ASARCO Inc., which owns 100% of the equity of ASARCO LLC, is seeking to regain control of the business. ASARCO Inc. does not currently control ASARCO LLC, but it has been active in the bankruptcy case in attempting to be more involved in decisions made by ASARCO LLC. ASARCO Inc. also disclosed that should it regain control, it would have ASARCO LLC work with the community and the appropriate regulatory agencies to remediate environmental contamination at the site. The smelter has been dormant since 1999. ASARCO Inc. is committed to developing ASARCO LLC into a competitive mining operator as part of the Americas Mining Corporation family. ASARCO Inc. has determined that the El Paso smelter does not fit into its overall business strategy and has committed to keeping the smelter closed if it succeeds in reestablishing control of ASARCO LLC. 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; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ATLANTIS PLASTICS: Taps Houlihan Lokey as Financial Advisor ----------------------------------------------------------- Atlantis Plastics, Inc. disclosed that on Jan. 18, 2008, it retained Houlihan, Lokey, Howard & Zukin as its exclusive financial advisor to assist the company in evaluating strategic alternatives, including a possible sale of the company. The company cautions, however, that there can be no assurance that this evaluation will result in any specific transaction or, if any specific transaction is to occur, the timing of such a transaction. The company does not expect to make any further announcement or disclosure of any further developments with respect to its evaluation of strategic alternatives unless and until its board of directors has approved a definitive transaction, if that occurs. Atlantis Plastics, Inc. -- http://www.atlantisstock.com/-- (NASDAQ: ATPL) manufactures polyethylene stretch and custom films and molded plastic products. Stretch films are used to wrap pallets of materials for shipping or storage. Custom films are made-to-order specialty film products used in the industrial and packaging markets. Atlantis' injection molded and profile extruded plastic products are used primarily in the appliance, automotive, agricultural, building supply, and recreational vehicle industries. ATLANTIS PLASTICS: S&P Retains Negative CreditWatch on Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings, including the 'CCC-' corporate credit rating, on Atlantis Plastics Inc. remain on CreditWatch with negative implications. S&P placed the ratings on CreditWatch with negative implications on Aug. 1, 2007, as the company is in default of certain financial covenants under its secured credit facility. "The CreditWatch update reflects the additional uncertainties associated with the company's recent decision to retain a financial advisor to explore strategic alternatives, which could include the sale of the company," said Standard & Poor's credit analyst Anna Alemani. "We believe this action is in response to difficulties regarding the company's negotiations with its lenders to obtain a waiver and amendments to the credit facility, given current difficult credit market and industry conditions." Standard & Poor's will continue to monitor Atlantis' efforts to obtain a waiver and amend its financial covenants and its ability to restore liquidity. Atlantis, which has annual revenues of about $400 million, has a competitive position in plastic films, including stretch films and custom films (about 64% of revenues). Injection-molded products (about 28% of revenues) include components sold to original equipment manufacturers, mainly in the home appliance industry, and siding panels for the homebuilding industry and residential replacement market. The company's profile-extruded products (8% of revenues) are used in recreational vehicles, mobile homes, and other consumer and commercial products. AVIS BUDGET: Moody's Holds Ratings and Revises Outlook to Negative ------------------------------------------------------------------ Moody's Investors Service changed the rating outlook for Avis Budget Car Rental, LLC to negative from stable; the company's corporate family rating is affirmed at Ba2 and its speculative grade liquidity rating remains SGL-2. The change in outlook reflects Moody's concerns that purchases under the newly authorized $50 million share repurchase program, combined with the potential exercise of an option to increase its ownership in Carey International to 80% from 45%, could occur as the US economy is weakening. Moreover, Moody's notes that Avis' operating performance and credit metrics have been moderately, but consistently, below the rating agency's expectations. As a result, Avis' credit metrics remain weak for the Ba2 rating level, and the pace of necessary improvement could be hampered by share repurchases, increased investment in Carey, and a weak US economy. The chief drivers of Avis' below-expectation performance have been a significant rise in rental fleet costs, a difficult pricing environment in the leisure car rental sector, and the downturn in the US housing market which has eroded demand in the truck rental business. In response to these operational challenges, Avis has implemented a number of cost reduction and revenue enhancement programs. Although the company has achieved a notable degree of success with certain of these programs, the benefits have not been sufficient to offset the rising fleet costs and pricing pressure. Avis' SGL-2 speculative grade liquidity rating reflects Moody's expectation that the company has adequate resources to cover its funding requirements during the next twelve months. These requirements principally relate to the need to fund the expansion of its car rental fleet during the second quarter, and to replace maturing term ABS fleet securitizations. These requirements should be adequately covered by these resources available as of the quarter ended Sept. 30, 2008: $223 million in cash; approximately $1.1 billion in availability under a committed credit facility; and availability under committed ABS conduits. The expansion of Avis' typical seasonal vehicle-backed bank ABS facility, which it expects to have closed by the end of February, will further enhance this liquidity position. Factors which might contribute to further pressure on the Ba2 rating include additional share repurchases beyond the $50 million program currently authorized, or an increased investment in Carey that takes place prior to the company demonstrating that the revenue and cost initiatives it is pursuing are adequate to contend with the slowing US economy. For the last twelve months through September 2007, Avis' key credit metrics (reflecting Moody's standard adjustments) were: EBIT/interest - 1.3x; EBITDA/interest - 4.6x; and debt/EBITDA - 4.1x. Avis' ability to sustain credit metrics of these levels would alleviate pressure on the Ba2 rating, and would position the company more firmly at the current rating level: EBIT/interest approximating 2x; EBITDA/interest of 5.0x; and, debt/EBITDA below 3.5x. Moody's notes that Avis has announced that under FAS 142 it may have to recognize a non-cash charge for goodwill impairment for the fourth quarter of 2007. This charge would largely be driven by the company's low stock price and the resulting difference between its market capitalization and its book capitalization. Moody's believes that this non-cash charge would not reflect any change in the economic prospects of Avis beyond those which are already reflected in the company's Ba2 rating and negative outlook. Consequently, any such charge, if recognized, is unlikely to have an impact on Avis' rating or outlook. Avis Budget Car Rental, LLC, headquartered in Parsippany, New Jersey, is the largest general-use vehicle rental company in North America. AXCAN PHARMA: Shareholders Approve TPG Capital Deal --------------------------------------------------- Axcan Pharma Inc. disclosed that the plan of arrangement, which involves the acquisition by an affiliate of TPG Capital of all outstanding common shares of Axcan for $23.35 per share, was approved by 99.87% of the votes cast by holders of Axcan's common shares. The result of this vote, which was obtained Friday at a special meeting of shareholders of Axcan, was in excess of the required 66 2/3% approval. Of the total outstanding common shares, 80.83% were voted either in person or by proxy. The closing of the transaction is subject to customary conditions, including the receipt of remaining regulatory approvals. The motion seeking a final order approving the proposed plan of arrangement is scheduled to be heard by the superior court of Quebec on Monday, Jan. 28, 2008, at 9:00 a.m. The transaction is expected to close in the first quarter of calendar 2008. Axcan will advise shareholders closer to the time of closing about the procedures for surrendering and receiving payment for their shares. The company generated revenue for the three-month period ended Dec. 31, 2007, of approximately $93 million, compared to revenue of $78.8 million for the three-month period ended Dec. 31, 2006. The disclosed financial result served as guide to shareholders as they casted votes on the acquisition of Axcan by an affiliate of TPG Capital. The company entered into the agreement with TPG Capital and its affiliates in an all-cash transaction with a total value of approximately $1.3 billion. Early Termination of 1976 Antitrust Improvement Act Axcan had received early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, relating to the proposed acquisition of Axcan by an affiliate of TPG Capital. In addition, the Commissioner of Competition had issued an advance ruling certificate in connection with the proposed acquisition under the Canadian Competition Act. As a result, the conditions to the closing of the acquisition relating to U.S. and Canadian antitrust approvals are now satisfied. Solicitation for "Yes" Votes Axcan had previously said that Institutional Shareholder Services Inc., PROXY Governance Inc. and Glass, Lewis & Co. have formally recommended that their clients holding shares in Axcan vote "FOR" the proposed arrangement with an affiliate of TPG Capital. These recommendations are the result of an analyses of the proposed arrangement and its impact on shareholders. "The board conducted a rigorous and lengthy sale process which involved multiple potentially interested parties. In (their) opinion, such a sales process, all things being equal, yields the highest possible valuation for the company," Glass Lewis, in issuing its recommendation, stated. "We are very pleased with the recommendations, as we believe that they represent an important endorsement of the reasoning behind the proposed arrangement," said Michael M. Tarnow, lead director of Axcan. "We are excited by the prospect of this partnership with TPG and looking forward to TPG's support in continuing to improve the quality of life and care of patients suffering from gastrointestinal diseases and disorders." "We would like to reiterate that we believe that the proposed arrangement with TPG is in the best interest of shareholders and encourage voters to vote "FOR" the proposed arrangement," Mr. Tarnow added. About Institutional Shareholder Services ISS, a subsidiary of RiskMetrics Group, provides corporate governance and proxy voting solutions and provides proxy research, voting services and corporate governance advisory services to financial institutions and corporations worldwide. In their report, ISS commented that "based on (their) review of the terms of the transaction and the factors described (in their report), in particular the premium offered, (they) believe that the going private Arrangement warrants shareholder support." About PROXY Governance PROXY Governance Inc., a subsidiary of FOLIOfn, Inc., is a proxy advisory and voting company specialising in objective advice that supports the goal of building long-term shareholder value. PROXY Governance Inc.'s rationale is that they "support this transaction because it appears to place a fair value on the company based on the general market reaction and the strong support the deal has received from equity analysts." In addition, PROXY Governance, Inc. "supports the board's active engagement in the process, as well as the use of a competitive sale process to help maximize shareholder value." About Glass Lewis Glass Lewis is a provider of proxy research and operator of the proxy voting system, ViewPoint. Glass Lewis' makes analysis of corporate governance issues, economic and financial matters and M&A transactions that come before shareholders for a vote. About TPG Capital Headquartered in Fort Worth, Texas, TPG Capital -- www.tpg.com -- is the buyout group of TPG, a private investment firm founded in 1992, with more than $35 billion of assets under management and offices in San Francisco, London, Hong Kong, New York, Minneapolis, Fort Worth, Melbourne, Menlo Park, Moscow, Mumbai, Beijing, Shanghai, Singapore and Tokyo. TPG Capital has experience with public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures and restructurings. About Axcan Pharma Based in Mont Saint-Halaire, Quebec, Axcan Pharma Inc. (TSX: AXP)(NASDAQ: AXCA) -- http://www.axcan.com -- is a specialty pharmaceutical company focused on gastroenterology. The company develops and markets a broad line of prescription products to treat a range of gastrointestinal diseases and disorders such as inflammatory bowel disease, irritable bowel syndrome, cholestatic liver diseases and complications related to pancreatic insufficiency. Axcan's products are marketed by its sales forces in North America and Europe. AXCAN PHARMA: S&P Puts Corporate Credit Rating at B+ ---------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Quebec, Canada-based Axcan Pharma Inc. At the same time, S&P assigned its bank loan and recovery ratings to fully owned financing subsidiary Atom Intermediate Holdings' proposed $475 million senior secured facilities, consisting of a $350 million term loan B facility due 2015 and a $125 million revolving credit facility due 2014. The facilities are rated 'BB-' (one notch higher than the corporate credit rating on Axcan) with a recovery rating of '2', indicating the expectation of substantial (70%-90%) recovery in the event of a payment default. S&P also assigned its 'B-' rating to Atom's $275 million senior unsecured notes maturing in 2016. Proceeds from the facilities will be used in conjunction with approximately $320 million of cash and $470 million of sponsor and management rollover equity to finance the buyout of Axcan Pharma Inc. by sponsor TPG Capital. "Debt leverage is high," said Standard & Poor's credit analyst Arthur Wong, "and we expect it to remain so over the intermediate term, limiting prospects for a higher rating." AXIUM INTERNATIONAL: Unit to Sell All Assets to MPS Group --------------------------------------------------------- Ensemble Chimes Global, wholly-owned subsidiary of Axium International Inc., disclosed that MPS Group Inc. was the successful bidder for its assets. The closing of the transaction is subject to certain contingencies, but it is anticipated that the transaction will close by the end of the month. On Jan. 24, 2008, the assets of Chimes, including software platforms and related intellectual property, were auctioned through bankruptcy proceedings in the United States District Court in Los Angeles. Axium International was also in the business of providing payroll and accounting services to the entertainment industry. MPS Group has no interest in pursuing any additional Axium International asset other than the assets of Chimes. "The anticipated acquisition of Chimes' assets will make Beeline the clear leader in vendor management solutions with potential oversight of more than $3 billion in annual contingent labor spend," Timothy Payne, president and chief executive officer of MPS Group, stated. "Chimes' clients and users can now feel comfortable that they will be supported by a large and financially strong public company that has a long-term commitment to providing world-class workforce solutions." "We are aware that many Chimes' clients have suffered recent disruptions to their operations due to Axium's bankruptcy filing," Richard White, president of Beeline, added. "We are ready and able to jump in and provide the resources and solutions necessary to get these clients back online and operating efficiently." About MPS Group Inc. Headquartered in Jacksonville, Florida, MPS Group Inc. (NYSE:MPS) -- http://www.mpsgroup.com/-- provides staffing, consulting, and solutions in the disciplines of information technology, finance and accounting, law, engineering, and healthcare. Badenoch & Clark Company -- http://www.badenochandclark.com/-- is MPS' London-based subsidiary that specializes in professional services recruitment on a direct hire, temporary, and contract basis in the United Kingdom. For 27 years, the company has focused on the accounting, financial services, banking, legal, insurance, property, public sector and human resource disciplines. MPS Group delivers its services to government entities and businesses in virtually all industries throughout the United States, Canada, the United Kingdom, and Europe. About Ensemble Chimes Headquartered in Los Angeles, California, Ensemble Chimes Global - - http://www.teamecg.com/-- is a wholly-owned subsidiary of Axium International. The company is a labor management services provider whose services range from workforce acquisition to payroll, from risk mitigation to billing and invoicing. The company filed for protection under Chapter 7 of the Bankruptcy Code on Jan. 9, 2008 Bankr. C.D. Calif. Case No. 08-10376). About Axium Axium International Inc. -- http://www.axium.com/-- provides payroll solutions for production. It offers various financial services and technology for the entertainment industry through Axium Global and Axium Global Workforce. It serves companies ranging from mid-market to Fortune 500. Axium International has offices in Los Angeles, New York, Burbank, Hollywood, Las Vegas, Toronto, Vancouver and London. The company filed for protection under Chapter 7 of the Bankruptcy Code on Jan. 8, 2008 (Bankr. C.D. Calif. Case No. 08-10277). Howard M. Ehrenberg, a partner at SulmeyerKupetz, has been appointed as Chapter 7 Trustee. BARNERT HOSPITAL: Facing Two DOJ-Supported Whistleblower Cases -------------------------------------------------------------- Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, together with two other hospitals, is facing two fraud cases that the U.S. Department of Justice has supported. The Department of Justice stated in its Web site that the United States has intervened against three New Jersey hospitals in two whistleblower lawsuits alleging that the hospitals defrauded Medicare. The three hospitals are Robert Wood Johnson University Hospital at Hamilton, and Bayonne Hospital. Both whistleblower lawsuits allege that the three hospitals fraudulently inflated their charges to Medicare patients to obtain enhanced reimbursement from Medicare. In addition to its standard payment system, Medicare provides supplemental reimbursement, called "outlier payments," to hospitals and other health care providers in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care requires unusually high costs. Peter Salvatori, Sara C. Iveson and James T. Monahan filed their lawsuits in 2002 under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of financial fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Mr. Salvatori and Ms. Iveson sued Robert Wood Johnson University Hospital at Hamilton and Barnert Hospital. Mr. Monahan brought suit against Robert Wood Johnson and Bayonne Hospital. Two of the hospitals, Barnert Hospital and Bayonne Hospital, have filed for Chapter 11 bankruptcy protection. The United States' investigations of Robert Wood Johnson, Barnert Hospital and Bayonne Hospital were the result of a coordinated effort among the Justice Department's Commercial Litigation Branch in the Civil Division; the U.S. Attorney's Office for the District of New Jersey, Affirmative Civil Enforcement Unit; the U.S. Attorney's Office for the Eastern District of Pennsylvania; the Department of Health and Human Services, Office of Inspector General and Office of Counsel to the Inspector General; the Centers for Medicare and Medicaid Services; and the Federal Bureau of Investigation. About Barnert Memorial Hospital Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English, LLP, represents the Debtor in its restructuring efforts. Warren J. Martin Jr., Esq. and John S. Mairo, Esq., at Porzio Bromberg & Newman, P.C., represent the Official Committee of Unsecured Creditors in this case. Donlin Recano & Company Inc. is the Debtor's claims, noticing, and balloting agent. The Debtor's schedules reflect total assets of $46,600,967 and total liabilities of $61,303,505. BAYONNE MEDICAL: Facing Two DOJ-Supported Whistleblower Cases ------------------------------------------------------------- Bayonne Medical Center, together with two other hospitals, is facing two fraud cases that the U.S. Department of Justice has supported. The Department of Justice stated in its Web site that the United States has intervened against three New Jersey hospitals in two whistleblower lawsuits alleging that the hospitals defrauded Medicare. The other hospitals are Robert Wood Johnson University Hospital at Hamilton, and Barnert Hospital in Paterson. Both whistleblower lawsuits allege that the three hospitals fraudulently inflated their charges to Medicare patients to obtain enhanced reimbursement from Medicare. In addition to its standard payment system, Medicare provides supplemental reimbursement, called "outlier payments," to hospitals and other health care providers in cases where the cost of care is unusually high. Congress enacted the supplemental outlier payment system to ensure that hospitals possess the incentive to treat inpatients whose care requires unusually high costs. Peter Salvatori, Sara C. Iveson and James T. Monahan filed their lawsuits in 2002 under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private citizens with knowledge of financial fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Mr. Salvatori and Ms. Iveson sued Robert Wood Johnson University Hospital at Hamilton and Barnert Hospital. Mr. Monahan brought suit against Robert Wood Johnson and Bayonne Hospital. Two of the hospitals, Barnert Hospital and Bayonne Hospital, have filed for Chapter 11 bankruptcy protection. The United States' investigations of Robert Wood Johnson, Barnert Hospital and Bayonne Hospital were the result of a coordinated effort among the Justice Department's Commercial Litigation Branch in the Civil Division; the U.S. Attorney's Office for the District of New Jersey, Affirmative Civil Enforcement Unit; the U.S. Attorney's Office for the Eastern District of Pennsylvania; the Department of Health and Human Services, Office of Inspector General and Office of Counsel to the Inspector General; the Centers for Medicare and Medicaid Services; and the Federal Bureau of Investigation. About Bayonne Medical Center Based in Bayonne, New Jersey, Bayonne Medical Center -- http://www.bayonnemedicalcenter.org/-- provides healthcare services and operates a medical center. The company operates a 278-bed fully accredited, acute-care hospital located in Hudson County. The company filed for Chapter 11 protection on April 16, 2007 (Bankr. D. N.J. Case No. 07-15195). Lawrence C. Gottlieb, Esq., Adam C. Rogoff, Esq., and Eric J. Haber, Esq., at Cooley Godward Kronish LLP, represent the Debtor in its restructuring efforts. Stephen V. Falanga, Esq., at Connell Foley LLP, is the Debtor's local counsel. Kurtzman Carson Consultants LLC is the Debtor's claims and noticing agent. Andrew H. Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis Epstein & Gross PC, represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of $1 million to $100 million. The Debtor's exclusive period to file a plan expired Nov. 12, 2007. BLOCKBUSTER INC: Movie Gallery Acquisition Unlikely, COO Says ------------------------------------------------------------- Acquiring Movie Gallery, Inc. is not part of Blockbuster, Inc.'s "reshaping" plans for 2008, according to Blockbuster chairman and chief operating officer James Keyes, reports The Wall Street Journal. Mr. Keyes said he wants to stay away from the financially troubled Movie Gallery and focus more on building Blockbuster's business. "We are actually hoping for the ultimate resolution of Movie Gallery's fate, that they will somehow find a way to survive, because, frankly, good competition is healthy for an industry," Mr. Keyes said in an interview, reports WSJ. "Blockbuster's challenge is to fix its core business before considering any sort of aggressive asset or acquisition," Mr. Keyes said. About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of $891,993,000 and total liabilities of $1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have asked the Court to extend their plan- filing exclusive periods to June 13, 2008. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. (Movie Gallery Bankruptcy News Issue No. 15; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. The rating outlook is stable. The company had approximately $991 million of debt outstanding as of Sept. 30, 2007. BUFFETS HOLDINGS: Hires Epiq as Claims and Noticing Agent --------------------------------------------------------- Buffets Holdings Inc. and its debtor-affiliates sought and obtained authority from the United States Bankruptcy Court for the District of Delaware to employ Epiq Bankruptcy Solutions LLC as their claims, notice and balloting agent. Buffets Holdings, Inc., Executive Vice President and Chief Financial Officer A. Keith Wall relates that the Debtors have tens of thousands of creditors and other parties-in-interest, many of whom are expected to file proofs of claim. He says that noticing and receiving, docketing and maintaining proofs of claim would impose heavy administrative and other burdens upon the Court and the Clerk of the Court. "Upon information and belief, preparing and serving the notices on all such creditors and parties in interest and docketing and maintaining the large number of proofs of claim that may be filed in these cases would strain the resources of the Clerk's Office," Mr. Wall says. To help the Debtors, Epiq will: (a) assist the Debtors with all required notices including * notice of commencement of the Chapter 11 cases and the initial meeting of creditors; * notice of claims bar dates; * notice of objections to claims; * notices of any hearings on the Debtors' disclosure statement and confirmation of the Debtors' Chapter 11 plan; and * any other miscellaneous notices as the Debtors or the Court may deem necessary or appropriate for the orderly administration of the Chapter 11 Cases; (b) within five days of the service of a particular notice, file with the Clerk's Office a certificate or affidavit of service that includes: * a copy of the notice served; * a list of persons upon whom the notice was served along with their addresses; and * the date and manner of service; (c) receive, examine and maintain copies of all proofs of claim and proofs of interest filed in the case; (d) maintain official claims registers in each of the Debtors' cases by docketing all proofs of claim and proofs of interest in the applicable claims database that includes: * the name and address of the claimant or interest holder and any agent, if the proof of claim or proof of interest was filed by an agent; * the date the proof of claim or proof of interest was received by Epiq and the Court; * the claim number assigned to the proof of claim or proof of interest; * the asserted amount and classification of the claim; and * the applicable Debtor against which the claim or interest is asserted; (e) implement necessary security measures to ensure the completeness and integrity of the claims registers; (f) transmit to the Clerk's Office a copy of the claims registers on a weekly basis, unless requested by the Clerk's Office on a more or less frequent basis; (g) maintain an up-to-date mailing list for all entities that have filed proofs of claim or proofs of interest and make the list available upon request to the Clerk's Office or any party in interest; (h) provide access to the public for examination of copies of the proofs of claim or proofs of interest filed in the case without charge during regular business hours; (i) record all transfers of claims pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedures and provide notice of the transfers; (j) comply with the applicable federal, state, municipal and local statutes, ordinances, rules, regulations, orders and other requirements; (k) promptly comply with any further conditions and requirements as the Clerk's Office or the Court may at any time prescribe; (l) provide any other claims processing, noticing and related administrative services as may be requested from time to time by the Debtors; (m) oversee the distribution of the applicable solicitation material to each holder of a claim against or interest in the Debtors; (n) respond to mechanical and technical distribution and solicitation inquiries; (o) receive, review and tabulate the ballots cast, and make determinations with respect to each ballot as to its timeliness, compliance with the Bankruptcy Code, Bankruptcy Rules and procedures ordered by the Court subject, if necessary, to review and ultimate determination by the Court; (p) certify the results of the balloting to the Court; and (q) perform any other related plan-solicitation services as may be requested by the Debtors. The Debtors believe that Epiq is well-suited to the job because Epiq specializes in providing claims management, administration, data-processing and related services to Chapter 11 debtors. According to Mr. Wall, Epiq's principals and senior staff have more than 10 years of in-depth Chapter 11 experience in performing noticing, claims processing, claims reconciliation and other administrative tasks for Chapter 11 debtors. Epiq is also experienced in performing plan voting and distribution services in relation to its role as Agent and has been retained to act as agent in many districts throughout the United States, Mr. Wall maintains. The Debtors will pay Epiq a $25,000 retainer, and its customary average hourly rates, plus necessary actual expenses: Designation Hourly Rate ----------- ----------- Clerk $50.00 Case Manager (level 1) $142.50 IT Programming Consultant $165.00 Case Manager (level 2) $202.50 Senior Case Manager $247.50 Senior Consultant TBD As part of the overall compensation payable to Epiq, the Debtors agree to indemnify Epiq, its officers, employees, and agents. The indemnification does not extend to acts of gross negligence or willful misconduct by Epiq. Daniel C. McElhinney, senior vice president and director of operations of Epiq assures the Court that Epiq does not hold any interest adverse to the Debtors or the Debtors' estates on matters for which it is to be retained and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Eagan, Minnesota, Buffets Holdings Inc. -- http://www.buffet.com/-- is the parent company of Buffets, Inc., which 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) BUFFETS HOLDINGS: S&P Withdraws 'D' Rating on Chapter 11 Filing --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' rating on Buffets Holdings Inc. and its subsidiary Buffets Inc. This action follows the company's voluntary filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. CAPITAL AUTO: S&P Places Preliminary BB Rating on Class D Notes --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Capital Auto Receivables Asset Trust 2008-1's $1 billion asset-backed notes series 2008-1. The preliminary ratings are based on information as of Jan. 24, 2008. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The credit quality of the underlying pool, which has a weighted average FICO score of 701.65 and consists of prime automobile loans; -- The timely interest and principal payments made under stressed cash flow modeling scenarios that are consistent with the ratings assigned to each class of notes; -- The credit enhancement; and -- The sound legal structure. Preliminary Ratings Assigned Capital Auto Receivables Asset Trust 2008-1 Interest Amount Legal final Class Rating Type rate* (million)** maturity ----- ------ ---- -------- ----------- ----------- A-1*** A-1+ Senior N.A. $207.000 February 2009 A-2 AAA Senior N.A. $261.000 September 2010 A-3 AAA Senior N.A. $359.000 August 2012 A-4 AAA Senior N.A. $120.407 July 2014 B**** A Sub N.A. $32.583 July 2014 C**** BBB Sub N.A. $15.038 July 2014 D**** BB Sub N.A. $5.013 July 2014 * The interest rate on each class of notes will be a fixed rate, a floating rate, or a combination of both if that class has both a fixed- and floating-rate tranche. If the interest rate is floating, the rate will be tied to one-month LIBOR, and the trust will enter into a swap agreement with the swap counterparty. ** The actual dollar amounts will be determined at pricing. *** The class A-1 notes will be sold in one or more private placements. **** The class B, C, and D notes may be initially retained by the depositor or sold in one or more private placements. N.A.-Not available. CARL HASTINGS: Case Summary & 42 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Carl W. Hastings Ramona M. Hastings 202 County Road 242 Hanceville, AL 35077 Bankruptcy Case No.: 08-80212 Chapter 11 Petition Date: January 24, 2008 Court: Northern District of Alabama (Decatur) Judge: Jack Caddell Debtor's Counsel: Harry P. Long, Esq. P.O. Box 1468 Anniston, AL 36202 Tel: (256) 237-3266 Total Assets: $1,433,350 Total Debts: $14,254,461 Debtor's 42 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Wells Fargo Equipment $4,504,225 530 Fifth Avenue, 15th Floor New York, NY 10036 C.I.T. Equipment Finance $4,500,000 1540 West Fountainhead Tempe, AZ 85282 Dunn Construction $1,200,000 P.O. Drawer 11967 Birmingham, AL 35202 Equipment Finance $500,000 P.O. Box 56347 Jacksonville, FL 32217 Altec Capital $380,000 33 Inverness Center Parkway, Suite 200 Birmingham, AL 35242 Ozark Stripping $150,000 Hanson Pipe & Products, Inc. $80,000 Hanson Pipe & Precast $72,253 Blue Star Ready Mix, U.S.A. $60,000 Burgreen Construction $50,000 A.P.A.C. Southeast $45,000 Alabama Guardrail $45,000 Kelly Construction Co. $44,000 R.J. Whisenant $39,000 H.&L. Guardrail $32,000 Tractor & Equipment $29,000 A.F.C. Self Insurance $25,000 J. Smith Lanier & Co. $25,000 Regions Bank $19,772 Kirkpatrick Concrete, Inc. $18,000 Sunshine Supplies $17,000 Cowin Equipment Co. $16,000 C.D.F. Engineers $15,000 Statewide Grassing, Inc. $15,000 Alabama Baricade $12,000 Highway Maintenance $10,000 Byars & Associates $10,000 S.R.M. Aggregates, Inc. $9,500 Protection Services $9,853 Division of Stabler Co. Fleet $9,000 Direct Market Fuelman Alabama Department of Re $7,500 T.C.I. Tire Center $7,000 Sherman Industrial $5,500 C.N.A. Surety $5,500 Sherman International $4,000 United Rentals $3,500 Rental Service Corp. $3,000 Monitor Surety Mangers $3,000 A.P.A.C. $2,000 McFreif, Seibels & Williams $2,000 Carr, Riggs & Ingram $1,998 G.M.A.C. value of security: $1,500 $30,000.00 CHRYSLER LLC: Invests $27 Million in Toledo Machining Plant ----------------------------------------------------------- Tom LaSorda, Chrysler LLC Vice Chairman and President, disclosed that Chrysler would invest more than $27 million in its Toledo Machining Plant in Ohio. The plans were revealed during a keynote speech at the Toledo Regional Chamber of Commerce's annual meeting. Toledo Machining, which currently builds torque converters and steering columns, will divide the investment into two separate parts of the plant: $26.4 million will go toward the manufacturing of a redesigned torque converter for automatic transmissions and an additional $1.5 million will be used for production of a new steering column. The torque converter investment will deliver improved fuel efficiency and refinement and retain 164 jobs. The steering column investment will retain 44 hourly jobs. "Chrysler's investments in the Toledo area are rooted in our faith that we can keep good-paying manufacturing jobs in America as long as government, our unions and our companies all pull together for the common good," Mr. LaSorda said. "We at Chrysler have a stake in Toledo being a vital city, and we're pleased at the ongoing progress." Overall, the Toledo Machining investment will enhance Chrysler's ability to offer the highest quality products and advanced technical expertise. "This is an important day for the future of the UAW and Chrysler, and in particular for the continued competitiveness of our team here in the State of Ohio," General Holiefield, UAW Vice President, who directs the union's Chrysler Department, said. "This investment is a significant step toward realizing our vision to see this company and our union grow this business and be competitive for the long run." "Chrysler is the largest manufacturing employer and one of the best corporate citizens in Wood County," Tom Blaha, Executive Director of the Wood County Economic Development Commission, said. "This investment is a testament to the hard working men and women at Toledo Machining." The Toledo Machining Plant is located in Perrysburg, Ohio. The plant covers 1.2 million square feet and employs 1,530. Employees at the plant are represented by UAW Local #1435. The plant builds steering columns and torque converters for vehicles across the Chrysler, Jeep(R), Dodge product line. Chrysler, a good neighbor and good citizen, sponsors various community events through its philanthropic arm, The Chrysler Foundation, including the Art Tatum Jazz Heritage Festival, Toledo Urban League, City's Youth Entrepreneur Program, Toledo Opera, the Toledo Museum of Art, Valentine Theatre and the Diamante Awards. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. CIENA CORP: Earns $30.4 Million in Fourth Quarter Ended Oct. 31 --------------------------------------------------------------- Ciena Corp. reported net income of $30.4 million for the fiscal fourth quarter ended Oct. 31, 2007. This compares to fiscal third quarter GAAP net income of $28.3 million, and with a reported GAAP net income of $13.1 million for the same period a year ago. For the fiscal year ended Oct. 31, 2007, Ciena's reported GAAP net income was $82.8 million. This compares to a GAAP net income of $595,000 for fiscal year 2006. Revenue for the fourth quarter totaled $216.2 million, representing a 5.5% sequential increase from fiscal third quarter revenue of $205.0 million, and an increase of 35.2% over the same period a year ago when the company reported revenue of $160.0 million. For the fiscal year ended Oct. 31, 2007, Ciena reported revenue of $779.8 million, representing an increase of 38.2% over revenue of $564.1 million for fiscal 2006. "By all accounts, 2007 was a momentous year for Ciena. In addition to achieving 38.0% annual revenue growth and delivering strong financial performance, we established ourselves as a leader in the emerging converged Ethernet infrastructure space with strong market validation for our FlexSelect Architecture and vision," said Gary Smith, Ciena president and chief executive officer. "Our strong 2007 performance is the direct result of the individual efforts of every single Ciena employee, and in 2008 everyone at Ciena will continue to focus on driving revenue growth while working toward further operating performance improvement." At Oct. 31, 2007, Ciena had a $1.7 billion total cash position, which includes $892.1 million in cash and cash equivalents and $856.1 million in short-term and long-term investments in marketable debt securities. The company's fiscal fourth quarter and fiscal 2007 GAAP net income reflect a $13.0 million loss related to investments in commercial paper issued by SIV Portfolio plc and Rhinebridge LLC, two structured investment vehicles that entered into receivership and failed to make payment at maturity. After giving effect to this loss, Ciena's investment portfolio at Oct. 31, 2007, included an estimated fair value of $33.9 million related to these two SIVs. "As we look into fiscal 2008, we believe Ciena is poised to benefit not only from capacity-related growth but also from the transition to next-generation, converged Ethernet-based network infrastructures," said Smith. "We believe that Ciena's focus on targeted segments of growth markets will enable us to continue to grow faster than our overall market. We expect to deliver up to 5.0% sequential revenue growth in our fiscal first quarter and 20.0% annual revenue growth in fiscal 2008." Balance Sheet At Oct. 31, 2007, the company's consolidated balance sheet showed $2.42 billion in total assets, $1.57 billion in total liabilities, and $850.2 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Oct. 31, 2007, are available for free at http://researcharchives.com/t/s?275f About Ciena Corp. Headquartered in Linthicum, Maryland, Ciena Corporation NASDAQ: CIEN) -- http://www.ciena.com/-- supplies communications networking equipment, software and services that support the transport, switching, aggregation and management of voice, video and data traffic. * * * As reported in the Troubled Company Reporter on Dec. 20, 2007, Moody's Investors Service changed Ciena Corp.'s ratings outlook to stable from negative and affirmed the company's B2 corporate family rating. Additionally, Moody's affirmed the company's B2 senior unsecured rating for the company's $542.0 million 3.75% convertible debt due February 2008. The change in outlook reflects the company's improved operating performance and cash generation capabilities as well as the improved positioning of the company's product portfolio enabling the company to compete in current optical networking markets. COLUMBUS MCKINNON: Earns $10 Mil. in Quarter ended December 30 -------------------------------------------------------------- Columbus McKinnon Corporation reported financial results for its fiscal 2008 third quarter that ended on Dec. 30, 2007. Net income of $10 million for the fiscal 2008 third quarter increased 9.5% from fiscal 2007 third quarter net income of $9.1 million. "Strong performance in the quarter, particularly from domestic hoists, cranes, rigging products and Columbus McKinnon Europe, resulted in robust growth in revenue, margins and core earnings," Timothy T. Tevens, president and chief executive officer, commented. "Demand from our target markets continues, both by industry and geography. Also, our continued focus on debt reduction, combined with our strong operating performance, resulted in a further upgrade in our debt rating from Moody's during the quarter." Cash and cash equivalents at end of period amounted to $61.07 million. At Dec. 30, 2007, the company's balance sheet total assets of $576.28 million, total liabilities of $296.63 million and total shareholders' equity of $279.65 million. About Columbus McKinno