T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, January 29, 2008, Vol. 11, No. 24 Headlines ACE SECURITIES: Moody's Junks Rating on Class M-9 Certificates AMERICAN HOME: Can Abandon HELOC Mortgage Loans Servicing Rights AMERICAN HOME: Court Approves Fifth Amendment to AH Mortgage APA AMERICAN HOME: Can Destroy Duplicate Copies of Unfunded Loan Files AMERICAN LAFRANCE: Files for Bankruptcy in Delaware AMERICAN LAFRANCE: Case Summary & 19 Largest Unsecured Creditors ASHTON WOODS: S&P Retains 'B+' Rating; Alters Outlook to Negative ASSET BACKED: S&P Puts Default Rating on 2002-HE1 Class B Certs. ATOM INTERMEDIATE: Moody's Puts Ba2 Ratings on Proposed Facilities AVIS BUDGET: S&P Puts BB+ Rating on Negative CreditWatch BANKUNITED FIN'L: Rapid Credit Decline Cues Fitch to Cut Ratings BANKUNITED TRUST: Moody's Downgrades Rating on Three Tranches BAUSCH & LOMB: Names Gerald M. Ostrov as Chairman and CEO BAUSCH & LOMB: Intention to Buy Eyeonics Won't Affect S&P's Rating BEATY CORP: Case Summary & 17 Largest Unsecured Creditors BELL MICROPRODUCTS: Has Until March 17 to Comply with Nasdaq BOBBY PERRY: Case Summary & 19 Largest Unsecured Creditors BOSTON HILL: Judge Feeney Dismisses Chapter 11 Case BROTMAN MEDICAL: Can Hire Kurtzman Carson as Claims Agent BUILDING MATERIALS: Sept. 30 Balance Sheet Upside-Down by $13.1MM CAPITAL LAND: Ch. 11 Trustee Taps CB Richard as Property Broker CBRL GROUP: Board Okays Repurchase of Additional 625,000 Shares CERRO NEGRO: Moody's Vacates B3 Rating After Tender Offer Success CHASEFLEX TRUST: Fitch Junks Rating on 2007-1 Class B-4 Trust CHEMTURA CORP: Selling Oleochemicals Business to PMC Group CHRYSLER LLC: Offers Compensation Packages to Hourly Workers CLAYMONT STEEL: Completes "Short-Form" Merger with Evraz Group CONEXANT SYSTEMS: Posts $9.22MM Net Loss in Qtr. Ended Dec. 28 CWABS INC: Realized Losses Spur S&P's Rating Cuts on 43 Classes DAYTON SUPERIOR: Debt Refinancing Commitment Moved to February 29 DEBT RESOLVE: Names Kenneth Montgomery as CEO Effective Feb. 16 DELTA FINANCIAL: Court OKs Morrison & Foerster as Bankr. Counsel DELTA FINANCIAL: Can Hire Pepper Hamilton as Delaware Counsel ENRON CORP: Seeks $9 Million in Remedies from Hewitt Associates ENRON CORP: Retrial for Two Ex-Merrill Lynch Executives Delayed ENRON CORP: High Court Refuses to Review Enron Investors' Lawsuit EVERGREEN TANK: Moody's Holds B2 Rating; Gives Negative Outlook FIRST FRANKLIN: 16 Classes Get S&P's Rating Downgrades on Losses FIRSTLINE SECURITY: Case Summary & 20 Largest Unsecured Creditors GENERAL GROWTH: Arranges Three New Mortgage Loans on Reg'l Malls GENERAL GROWTH: Responds to News of Likely Default and Bankruptcy GSAMP TRUST: S&P Reinstates Rating on Class A-1A Certificates GSC INVESTMENT: Moody's Puts Ba2 Rating on $22 Mil. Class E Notes HEXION SPECIALTY: Extends Huntsman-Merger Termination to July 4 HOME EQUITY: S&P Downgrades Rating on Class B to 'BB' from 'BBB' HYDRAULIC TECHNOLOGIES: Court Approves Asset Sale Stipulation IAC/INTERACTIVE CORP: Liberty Media Wants to Oust 7 Board Members INDYMAC BANK: Fitch Assigns 'B+' Rating on $500MM Preferred Stock INTERSTATE BAKERIES: Various Parties Oppose Disclosure Statement ISLE OF CAPRI: Completes Acquisition of 43% IoC-Black Hawk Stake JABIL CIRCUIT: Earns $62 Million in First Quarter Ended Nov. 30 L TERSIGNI: Pushes for Limited Access to "Innocence" Report LAWRENCE GOSE: Case Summary & Six Largest Unsecured Creditors LENNAR CORP: S&P Rating Unaffected by $1.9 Bil. Operating Losses LENNOX INT'L: S&P Upgrades Corporate Credit Rating to BB+ From BB LIBERTY MEDIA: Wants Removal of Barry Diller as IAC Chairman MEDICAL CONNECTIONS: Inks Pact to Buy Medical Staffing's Assets MOSAIC COMPANY: Earns $394 Million in Second Quarter Ended Nov. 30 MOVIE GALLERY: S&P Withdraws 'D' Ratings on Chapter 11 Filing MYSTARU.COM: DNTW Chartered Accountants Raises Going Concern Doubt NATIONAL RV: Hires Omni Management as Claims and Noticing Agent NATIONAL RV: Committee Taps Pachulski Stang as Counsel OCEANIA CRUISES: S&P Lifts Rating to 'B+' on Strong 2007 Results OFFICEMAX INC: Brian Cornell Resigns as Member of the Board OMNOVA SOLUTIONS: Earns $3.7 Million in 4th Quarter Ended Nov. 30 OTTO BEYER: Case Summary & 24 Largest Unsecured Creditors OWNIT MORTGAGE: Moody's Places Ratings of Six Tranches on Watch PACKAGING DYNAMICS: S&P Puts B+ Corporate Rating on Negative Watch PALM INC: To Close More Than 30 Stores Amid Fierce Competition PATSY CATANZARETI: Case Summary & Nine Largest Unsecured Creditors PEABODY ENERGY: Inks Investment Contract with GreatPoint Energy PERFORMANCE TRANSPORT: Lenders Objects to Black Diamond DIP Fund PERFORMANCE TRANSPORTAION: Wells Fargo Balks at DIP Financing PERFORMANCE TRANSPORTATION: Wants DIP Loan Objections Overruled POPE & TALBOT: Obtains Additional Waivers to DIP Agreement POPE & TALBOT: PwC Reports Completion of Sale of 3 Surplus Lands PRC LLC: Court Approves $30 Million DIP Financing PRC LLC: Court Okays Use of Lenders' Cash Collateral PRC LLC: Wants to Employ Weil Gotshal as Bankruptcy Counsel RAMP TRUST: S&P Cuts Ratings on 61 Classes on Adverse Performance RAPID LINK: Recurring Losses Cue KBA to Raise Going Concern Doubt RITCHIE (IRELAND): DIP Financing Upped to $4.5 Million ROBERT MILLS: Voluntary Chapter 11 Case Summary SAN PASQUAL: Moody's Retains B2 Corporate Family Rating SECURUS TECH: Limited Liquidity Prompts S&P to Chip Ratings to B- SMARTIRE SYSTEMS: Sells Second Convertible Debenture STRUCTURED ADJUSTABLE: S&P Slashes Rating on Class M2 to B from A STRUCTURED ASSET: Class M-2 Obtains Moody's Junk Rating STRUCTURED ASSET: Moody's Downgrades Ratings on 28 Certificates STRUCTURED ASSET: S&P Junks Rating on Class M2 Certificates TECHALT INC: Inks Merger Agreement to Acquire EV Parts THEODORE BUTLER: Case Summary & Six Largest Unsecured Creditors TODD PITNER: Case Summary & Three Largest Unsecured Creditors TOWERS OF CHANNELSIDE: Lender Refuses Credit; Files for Bankruptcy TYSON FOODS: To Cut Workforce at Emporia Plant by More Than 50% TYSON FOODS: To Get $4.5 Mil. from Derivative Lawsuit Settlement US DRY CLEANING: Director Martin Brill Buys 61,539 Shares of Stock US DRY CLEANING: Squar Milner Raises Going Concern Doubt US ENERGY: Stockholders' Special Meeting Scheduled Today at Noon US WASTE: 5 Years of Low Performance Cues Complete Restructuring WICHITA BRENTWOOD: S&P Changes Outlook to Stable; Holds B Rating * California Default Notices Highest in 15 Years, DataQuick Says * Chapter 13 and 7 Filings in New Hampshire Surge in 2007 * Surge in Iowa's Bankruptcies May Continue Over Economic Crisis * Fitch Says Commercial Paper Market Will Face Challenging Outlook * S&P Downgrades Ratings on 93 Classes from 35 Subrpime RMBS * Large Companies with Insolvent Balance Sheets ********* ACE SECURITIES: Moody's Junks Rating on Class M-9 Certificates -------------------------------------------------------------- Moody's Investors Service has downgraded the rating of ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE5, Class M-9. The collateral backing this class consists of primarily first lien, fixed and adjustable-rate, subprime mortgage loans. Moody's has applied its published methodology updates to the non delinquent portion of the transaction. Collateral backing this transaction is also experiencing higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE5 -- Cl. M-9, Downgraded to Ca, previously Baa3. AMERICAN HOME: Can Abandon HELOC Mortgage Loans Servicing Rights ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has authorized American Home Mortgage Investment Corp. to abandon their HELOC Mortgage Loans servicing rights, effective as of Feb. 1, 2008, under the 2004-4 Servicing Agreement. The Court also lifted the automatic stay imposed to permit GMAC LLC and the parties to the 2004-4 HELOC Servicing Agreements to take all necessary actions to transfer the rights and responsibilities of the Debtors to service the HELOC Mortgage Loans to GMAC. As reported in the Troubled Company Reporter on Jan. 11, 2008, James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware, contended that the abandonment of the HELOC Servicing Rights is warranted under Sections 105 and 554(a) of the Bankruptcy Code. He disclosed that the Debtors estimate that by March 15, 2008, they will lose money for servicing the HELOC Mortgage Loans. Hence, the Debtors determined that the obligations and expenses related to the HELOC Servicing Rights are unnecessary administrative burden on, and are of inconsequential value to the bankruptcy estates. Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on March 3, 2008. (American Home Bankruptcy News, Issue No. 23, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Court Approves Fifth Amendment to AH Mortgage APA ---------------------------------------------------------------- American Home Mortgage Investment Corp. and its debtor-affiliates obtained permission from the U.S. Bankruptcy Court for the District of Delaware to enter into and perform all their obligations under a fifth amendment to the Asset Purchase Agreement between them and AH Mortgage Acquisition Co. Inc. The Fifth Amendment provides for: (i) the entry of into an employment agreement between American Home Mortgage Servicing Inc., and David M. Friedman, (ii) the assignment of the Employment Agreement to AHM Acquisition. The Fifth Amendment specifically provides that the Employment Agreement will be deemed (i) part of the loan servicing business, (ii) to be a purchased asset, and (iii) an assumed contract. In addition, the liabilities incurred under the Employment Agreement will be deemed assumed liabilities. Mr. Friedman is the executive vice president of AHM Servicing and is running the the Debtors' servicing business. The Debtors said that Mr. Friedman's skills, experience with the company, and familiarity with the industry are critical to maintaining the Servicing Business and successfully transitioning the Servicing Business from the Debtors to AHM Acquisition. Accordingly, the Debtors have agreed that he should continue to be employed by the Debtors, and eventually with AHM Acquisition, upon the terms and conditions set in the Employment Agreement. The Hon. Christopher Sontchi has authorized the Debtors to enter into the Employment Agreement. The Court also granted the parties' request that the Agreement be filed under seal, and be not be made available to anyone, except for the Court, the Office of the U.S. Trustee, and counsel to the Official Committee of Unsecured Creditors, the Administrative Agent, AHM Acquisition and the DIP Lenders. Judge Sontchi noted that if the final closing of the sale does not occur within a year after the effective date of the Employment Agreement, AHM Servicing must obtain a further order from the Court before making certain payments specified under the Agreement. If the Court's order is reversed, modified or vacated, that disposition will not impair, release or affect the validity of any rights granted to the parties under the Fifth Amendment prior to the reversal or modification. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on March 3, 2008. (American Home Bankruptcy News, Issue No. 23, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Can Destroy Duplicate Copies of Unfunded Loan Files ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware has authorized American Home Mortgage Investment Corp. to immediately abandon and destroy only those duplicate hard copy loan files for loans, which the Debtors did not fund, and in a manner consistent with the standard set forth in Section 682.3(a) of the Commercial Practices of the Code of Federal Regulations, which provides for the proper disposal of consumer report information and records. Judge Christopher Sontchi said that the Debtors will be exempt from any other inconsistent federal, state laws or regulations, including with respect to the disposal or retention of non-public consumer information. The Court also held that the Debtors may expend resources of the bankruptcy estates for the disposal of the loan files. The Court did not rule on the request in its entirety. Judge Sontchi will commence a hearing on Feb. 1, 2008, at 11:00 a.m., to consider other items requested by the Debtors. Prior to the partial ruling on the request, Countrywide Bank, FSB, formerly Countrywide Bank, N.A., and Countrywide Home Loans Inc., informed the Court that they are currently working with the Debtors for a consensual resolution of issues relating to the request, and to confirm that none of the original mortgage files and mortgage loan documents will be destroyed. Hence, Countrywide asked the Court to deny the request to the extent it seeks fees to return Countrywide's property, or provides for the property's destruction. About American Home Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on March 3, 2008. (American Home Bankruptcy News, Issue No. 23, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Files for Bankruptcy in Delaware --------------------------------------------------- American LaFrance LLC has filed a voluntary petition for relief under Chapter 11 of the U.S. bankruptcy code in the United States Bankruptcy Court for the District of Delaware. The company disclosed will request approval of $50 million in debtor-in-possession financing from its pre-bankruptcy lenders. The company will continue to operate its manufacturing facilities and provide repair services as a debtor-in-possession. The company has retained William K. Snyder, a Managing Partner with CRG Partners Group, LLC, as Chief Restructuring Officer. The company will shortly file a Plan of Reorganization along with a motion for sale under Section 363 of the bankruptcy code in case the Plan of Reorganization is not approved. It is anticipated that the reorganization process will be completed in less than 90 days, at which time the Company will emerge from bankruptcy with ample liquidity for ongoing operations and a more viable debt structure. The company will file motions to honor customer warranties and employee wages, among other relief. The company intends to honor its obligations to supply vehicles that are supported by performance bonds. ALF's Chapter 11 filing is the result of several factors, including significant operational difficulties encountered upon the separation of ALF's business from the business of ALF's former parent, Freightliner LLC. To address these operational problems and to fund general operating expenses, ALF has incurred approximately $150 million in secured debt since the business was purchased from Freightliner LLC. American LaFrance LLC, through its predecessor entities, is one of the oldest fire, rescue, and EMS vehicle manufacturers in the United States, dating back to the its founding in 1832. The Company operates 8 manufacturing/servicing facilities and two company-owned vehicle dealerships. AMERICAN LAFRANCE: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: American LaFrance, L.L.C 1090 Newton Way Summerville, SC 29483 Bankruptcy Case No.: 08-10178 Type of Business: The Debtor manufactures a variety of emergency vehicle equipment, including fire trucks, tankers, ambulances, aerial ladders, fire pumps, and fire rescue boats. It serves markets in the U.S. and Canada through six regional sales offices. Some of its fire and rescue vehicles have served their communities for up to 30 years. Once a subsidiary of DaimlerChrysler's Freightliner (now Daimler Trucks North America), DaimlerChrysler sold it to private equity firm Patriarch Partners for an undisclosed sum late in 2005. See http://www.americanlafrance.com/ Chapter 11 Petition Date: January 28, 2008 Court: District of Delaware (Delaware) Judge: Brendan Linehan Shannon Debtor's Counsel: Christopher A. Ward, Esq. Klehr, Harrison, Harvey, Branzburg & Ellers, L.L.P. 919 North Market Street, Suite 1000 Wilmington, DE 19801 Tel: (302) 552-5512 Fax: (302) 426-9193 Total Assets: $100 Million to $500 Million Total Debts: $100 Million to $500 Million Debtor's 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ A.C.E.-U.S.A. letters of credit $18,200,000 A.C.E. Bond Services associated with performance and/or bid bonds; value of security: $26,374,756 Freightliner, L.L.C. $10,578,000 Patriach Partners Asset trade payable $7,349,371 Services 227 West Trade Street, Suite 1400 Charlotte, NC 28202 Warranty Claims warranty reserve for $7,105,000 for vehicles delivered within the last year Traveler's Casualty & Surety letters of credit $2,850,000 associated with performance and/or bid bonds; value of security: $4,947,000 Pneu-Mech Systems trade payable $2,631,962 Manufacturing, Inc. 201 Pneu-Mech Drive Statesville, NC 28625 Allison Transmission, Inc. trade payable $2,214,529 P.O. Box 894 Indianapolis, IN 46206 Cananwill, Inc. trade payable $2,205,261 1000 Milwaukee Avenue Glenview, IL 60025 Various Employees accrued vacation $1,455,334 Class 1, Inc. customer deposit $1,129,577 5794 Collection Drive Chicago, IL 60693 I.B.M. Corp. trade payable $840,092 P.O. Box 643600 Pittsburgh, PA 15264-3600 A.M.E., Inc. trade payable $725,132 P.O. Box 909 Fort Mill, SC 29716-0909 Hale Products, Inc. trade payable $714,339 P.O. Box 98548 Chicago, IL 60693 I.B.M. Corp. trade payable $707,800 P.O. Box 534151 Atlanta, GA 30353-4151 Clay County customer deposit $629,360 Kenneth Stach 4383 State Route 31 Clay, NY 13041 O.F.A.B., Inc. trade payable $627,380 2817 Northwest 8th Place Ocala, FL 34475 E.N.A.P. Grupo de Empresas customer deposit $598,376 Herman P. Zumarana Avenue Borgono 25777, Concon Chile Jedburg Industrial Property 1 trade payable $571,518 P.O. Box 3524 Spartanburg, SC 29304 Rehoboth Beach, V.F.C. customer deposit $528,761 Leonard Tylecki, Comm. Chair P.O. Box 327, 219 Rehoboth Avenue Rehoboth Beach, DE 19971 ASHTON WOODS: S&P Retains 'B+' Rating; Alters Outlook to Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' corporate credit ratings on Ashton Woods USA LLC and its subsidiary, Ashton Woods Finance Co. At the same time, S&P affirmed its 'B-' rating on the company's $125 million senior subordinated notes. Concurrently, S&P revised its outlook on Ashton Woods to negative from stable. "The outlook revision reflects our expectation that the deepening housing market downturn will pressure Ashton Wood's key credit metrics and potentially reduce currently adequate liquidity," said creditanalyst George Skoufis. "In addition, the recently announced departure of the company's chief financial officer could potentially place more demands on an already lean management team. The affirmed ratings acknowledge the company's smaller, less- diversified platform. These weaknesses, however, are currently offset by consistent and prudent inventory management and a moderate leverage profile." S&P expects market conditions to remain challenging through 2008 and into 2009, which will pressure Ashton Woods' smaller platform and weigh on key credit measures and the company's ability to generate cash and preserve liquidity. Near-term positive rating actions are unlikely due to the currently challenging homebuilding environment. If the company is unable to preserve its currently adequate liquidity and/or faces additional covenant pressure, S&P will lower the ratings. ASSET BACKED: S&P Puts Default Rating on 2002-HE1 Class B Certs. ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 15 classes of asset-backed pass-through certificates issued by nine Asset Backed Securities Corp. Home Equity Loan Trust deals. S&P removed three of the lowered ratings from CreditWatch with negative implications. In addition, S&P placed the ratings on 12 classes from these and another two deals on CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the remaining 78 classes from 11 transactions. The downgrades reflect an increasing amount of severe delinquencies (90-plus days, foreclosures, and REOs) and 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 balances, ranged from 0.90% (series 2005-HE6) to 4.17% (series 2001-HE1). Severe delinquencies, as a percentage of the current pool balances, ranged from 11.50% (series 2003-HE2) to 31.66% (series 2001-HE1). Losses for the transactions issued between 2001 and 2004 have outpaced excess interest over the past six months by an average of 2.4x (series 2001-HE1), 3.77x (series 2002-HE1), 1.4x (series 2003-HE2), 1.7x (series 2003-HE3), and 2.45x (series 2004-HE3). Current severe delinquencies for the transactions issued in 2005 exceed available overcollateralization by 6.37x (series 2005-HE1), 3.93x (series 2005-HE2), 4.68x (series 2005-HE3), 4.61x (series 2005-HE4), 10.09x (series 2005-HE5), and 4.41x (series 2005-HE6). S&P placed its ratings on 12 classes from the 2005 vintage on CreditWatch negative because many of the losses relative to the increasing severe delinquencies have not been realized yet. S&P will continue to monitor these classes and will take further rating actions if projected credit enhancement continues to erode. S&P removed its ratings on three classes from CreditWatch negative because S&P downgraded them to 'B' or 'CCC'. The affirmations reflect sufficient credit enhancement levels 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 series originally consisted primarily of fixed- and adjustable- rate mortgage loans secured by first and second liens on one- to four-family residential properties. Ratings Lowered Asset Backed Securities Corp. Home Equity Loan Trust Asset-Backed Pass-Through Certificates Rating ------ Series Class To From ------ ----- -- ---- 2001-HE1 M2 BBB- A 2002-HE1 M2 B BBB 2002-HE1 B D CCC 2003-HE3 M4 BB- BBB 2004-HE3 M4 BB BBB+ 2004-HE3 M5 B+ BBB 2004-HE3 M6 B BBB- 2004-HE3 M7 CCC BB+ 2005-HE1 M11 CCC B 2005-HE3 M11 CCC BB 2005-HE5 M12 CCC B 2005-HE6 M11 CCC B Ratings Lowered and Removed From CreditWatch Negative Asset Backed Securities Corp. Home Equity Loan Trust Asset-Backed Pass-Through Certificates Rating ------ Series Class To From ------ ----- -- ---- 2001-HE1 B CCC B/Watch Neg 2003-HE2 M5 B BB/Watch Neg 2003-HE3 M5 B BB/Watch Neg Ratings Placed on CreditWatch Negative Asset Backed Securities Corp. Home Equity Loan Trust Asset-Backed Pass-Through Certificates Rating ------ Series Class To From ------ ----- -- ---- 2005-HE1 M9 BBB-/Watch Neg BBB- 2005-HE1 M10 BB+/Watch Neg BB+ 2005-HE2 M7 BBB-/Watch Neg BBB- 2005-HE2 M8 BB+/Watch Neg BB+ 2005-HE3 M9 BBB-/Watch Neg BBB- 2005-HE3 M10 BB+/Watch Neg BB+ 2005-HE4 M11, M12 BB/Watch Neg BB 2005-HE5 M9 BBB/Watch Neg BBB 2005-HE5 M10 BBB-/Watch Neg BBB- 2005-HE5 M11 BB/Watch Neg BB 2005-HE6 M8 BBB/Watch Neg BBB Ratings Affirmed Asset Backed Securities Corp. Home Equity Loan Trust Asset-Backed Pass-Through Certificates Series Class Rating ------ ----- ------ 2001-HE1 M1 AAA 2002-HE1 M1 AA 2003-HE2 M1 AA 2003-HE2 M2 A 2003-HE2 M3 A- 2003-HE2 M4 BBB 2003-HE3 M1 AA 2003-HE3 M2 A 2003-HE3 M3 A- 2004-HE3 M1 AA 2004-HE3 M2 A 2004-HE3 M3 A- 2005-HE1 M1 AA+ 2005-HE1 M2 AA 2005-HE1 M3 AA- 2005-HE1 M4 A+ 2005-HE1 M5 A 2005-HE1 M6 A- 2005-HE1 M7 BBB+ 2005-HE1 M8 BBB 2005-HE2 M1 AA 2005-HE2 M2 AA- 2005-HE2 M3 A 2005-HE2 M4 A- 2005-HE2 M5 BBB+ 2005-HE2 M6 BBB 2005-HE3 A1, A2B, A4, A5 AAA 2005-HE3 M1 AA+ 2005-HE3 M2 AA 2005-HE3 M3 AA- 2005-HE3 M4 A+ 2005-HE3 M5 A 2005-HE3 M6 A- 2005-HE3 M7 BBB+ 2005-HE3 M8 BBB 2005-HE4 A1, A2, A2A, A2B AAA 2005-HE4 M1 AA+ 2005-HE4 M2 AA 2005-HE4 M3 AA- 2005-HE4 M4 A+ 2005-HE4 M5 A 2005-HE4 M6 A- 2005-HE4 M7 BBB+ 2005-HE4 M8 BBB 2005-HE4 M9 BBB- 2005-HE4 M10 BB+ 2005-HE5 A1, A1A, A2, A2A AAA 2005-HE5 M1 AA+ 2005-HE5 M2, M3 AA 2005-HE5 M4 AA- 2005-HE5 M5 A+ 2005-HE5 M6 A 2005-HE5 M7 A- 2005-HE5 M8 BBB+ 2005-HE6 A1, A1A, A2B, A2C AAA 2005-HE6 A2D AAA 2005-HE6 M1 AA+ 2005-HE6 M2 AA 2005-HE6 M3 AA- 2005-HE6 M4 A+ 2005-HE6 M5 A 2005-HE6 M6 A- 2005-HE6 M7 BBB+ 2005-HE6 M9 BB 2005-HE6 M10 B ATOM INTERMEDIATE: Moody's Puts Ba2 Ratings on Proposed Facilities ------------------------------------------------------------------ Moody's Investors Service assigned Ba2 ratings to the proposed senior secured credit facilities of Atom Intermediate Holdings, Inc., an acquisition vehicle intended to purchase Axcan Pharma Inc. Moody's also assigned a B3 long-term debt rating to Atom Intermediate's proposed $275 million of senior unsecured notes. Concurrently Moody's assigned a B1 Corporate Family Rating to Atom Intermediate. The outlook for the ratings is stable. The ratings were assigned in connection with the all-cash acquisition of Axcan by TPG Capital through a combination of equity and debt financing. Proceeds from the proposed Ba2-rated $350 million term loan B and the B3-rated $275 million senior unsecured notes, along with about $470 million in equity and, also, cash on hand will be used to purchase 100% of the equity of Axcan, refinance a small amount of existing debt and pay expenses associated with the transaction. The Ba2-rated $125 million revolver includes a sub-facility for letters of credit. At closing, the revolver is expected to be undrawn. The bank facilities include a $75 million accordion feature. The ratings are constrained by a relatively high level of pro forma financial leverage as of the Sept. 30, 2007 fiscal year end, which is in line with the B1 Corporate Family Rating; the ratings are also constrained by the lack of patent protection on the company's main products and the likelihood of near term generic competition with respect to Urso, which forms a significant percentage of the company's revenues. In addition, Axcan's small revenue base, current dependence on four product groups and the uncertain growth prospects of drugs currently in Axcan's pipeline are significant credit risks. Nonetheless, the ratings reflect Axcan's prominent market position in the gastroenterology field and its success in growing market share in individual branded drugs in recent years. Notwithstanding ongoing pressure from payors globally, the ratings also benefit from continuing above-inflation trends with respect to prescription medication pricing. Moody's assigned these ratings: -- Corporate Family Rating, rated B1; -- Probability of Default Rating, rated B1; -- $125 million senior secured revolving credit facility due 2014, rated Ba2 (LGD 2, 26%); -- $350 million senior secured term loan B due 2015, rated Ba2 (LGD 2, 26%); -- $275 million senior unsecured notes due 2016, rated B3 (LGD 5, 81%); The ratings outlook is stable. Moody's also assigned a Speculative Grade Liquidity Rating of SGL 2 to Atom Intermediate. The ratings of Atom Intermediate will be transferred to the continuing entity, which will be the borrower under the credit facilities and issuer of the notes. Axcan Pharma Inc., based in Mont St-Hilaire, Quebec, is a specialty pharmaceutical company concentrating in the field of gastroenterology with operations in North America and Europe. Axcan had revenue of approximately $349 million for the fiscal year ended Sept. 30, 2007. AVIS BUDGET: S&P Puts BB+ Rating on Negative CreditWatch -------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Avis Budget Group Inc., including the 'BB+' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects concerns regarding refinancing risk, the effect of a weaker economy, and potential asset impairments after several announcements made by Avis Budget [the parent of the Avis and Budget car rental brands]," said Standard & Poor's credit analyst Betsy Snyder. At Sept. 30, 2007, Parsippany, New Jersey-based Avis Budget had approximately $2.5 billion of asset-backed vehicle debt due within the next year. The company has already repaid a portion from an increase in its principal asset-backed bank conduit facility that was increased in October 2007 to $1.5 billion from $1 billion. It is also in the process of increasing its seasonal vehicle-backed bank facility, which it expects to close by the end of February 2008. However, under current capital market conditions, Avis Budget may find it more difficult to achieve this goal. The weakening U.S. economy could pressure the company's revenues and earnings in 2008. The company has indicated it expects its 2008 revenues, EBITDA, and pretax income, excluding unusual items, to increase over 2007. However, these expectations could prove to be optimistic, especially if airline traffic, from which the company derives a major portion of its business (the on-airport sector), weakens significantly. Like other car rental companies, Avis Budget has the ability to reduce its fleet if market conditions warrant, but weaker used car prices could hurt the company's results. Avis Budget, similar to other industry participants, has increased the percentage of risk vehicles in its fleet to about 50%. Unlike vehicles covered under manufacturer repurchase programs, there is residual risk associated with these vehicles upon their sale. A significant reduction in vehicles by car rental companies to meet weaker demand could exacerbate the decline in used vehicle prices in a prolonged weak used car market. Finally, the company announced it would be required to record a substantial one-time noncash charge for goodwill impairment in the fourth quarter of 2007, based on a reconciliation of its current equity market capitalization to shareholders' equity, rather than recent results or longer term expectations. The company has indicated it does not expect this charge to affect any of its borrowing arrangements. Standard & Poor's will assess the progress of the refinancing, consider the credit effect of the weaker economy, and evaluate potential asset impairments over the next few months to resolve the CreditWatch. If the company is unsuccessful in its refinancing, S&P would likely lower ratings. S&P's evaluation will also focus on the company's expected financial performance in a more difficult economic environment. BANKUNITED FIN'L: Rapid Credit Decline Cues Fitch to Cut Ratings ---------------------------------------------------------------- Fitch Ratings has downgraded these ratings of BankUnited Financial Corporation: -- Long-term Issuer Default Rating to 'BB' from 'BB+'; -- Senior debt to 'BB' from 'BB+'; -- Individual rating to 'C/D' from 'C'. In addition, these ratings were affirmed: -- Short-term IDR at 'B'; -- Support rating at '5'; -- Support floor at 'NF'. Fitch has revised the Rating Outlook to Negative from Stable. The downgrade reflects BKUNA's rapid credit deterioration particularly evident in the sharp rise in non-performing assets during the period to levels beyond Fitch's expectation. BKUNA reported a $25.5 million net loss for the fiscal first quarter ended Dec. 31, 2007 driven mainly by the significant rise in provisions and continued margin compression. Asset quality has been hampered by the rise in delinquencies within its Option ARM portfolio, particularly loans with 2006 vintages. The worsening asset quality metrics prompted the company to boost provisions by $65 million to $117.7 million for the period, compared to $58.6 million the previous quarter. During the quarter, non-performing loans jumped to 3.05% of total loans mainly from substantial increases in delinquencies from the company's Option ARMs portfolio. Mitigating factors are BKUNA's present solid capital position, stable funding, and liquidity sources. Limited revenue diversity, loan product and geographic concentration, and a significant level of parental debt are rating constraints. Fitch notes BKUNA has always underwritten loans to the fully amortized rate as well as requiring mortgage insurance for loans originated with loan to value's above 80%. Loans with 2006 and 2007 vintages comprise 57% of the residential portfolio. Respectively, 30% and 25% of these loans have mortgage insurance provided by financial guarantors. Option ARM loans account for 70% of total loans. To date, charge-off levels have remained low at $6 million for the quarter. Foreclosures increased to $46 million compared to $33 million in the previous period. The Negative Outlook reflects Fitch's view of the extreme deterioration nationally, in particular mortgage loan vintages and the resultant losses, largely attributable to the weak housing market. BKUNA could experience further pressures on earnings and asset quality given these conditions and the composition of the loan portfolio. Currently, capital levels remain adequate; however, if asset quality continues to deteriorate at the present pace, capital could be affected further. The company has announced steps to strategically reposition the business model such as staff reductions, closure of loan production offices, and a diversification of its business mix. BKUNA could face challenges to grow its commercial lending area given the significant competition serving this market. Fitch would revisit the Negative Outlook should BKUNA successfully execute its strategic goals and stabilize its credit and profitability metrics. Fitch has downgraded these ratings and revised the Outlook to Negative: BankUnited FSB -- Long-term IDR to 'BB' from 'BB+'; -- Long-term deposits to 'BB+' from 'BBB-'; -- Short-term deposits to 'B' from 'F3'; -- Individual to 'C/D' from 'C'; BankUnited Statutory Trust VIII, IX, XI, XII -- Preferred stock to 'B+' from 'BB-'; BUFC Statutory Trust VII, X -- Preferred stock to 'B+' from 'BB-'; Fitch has affirmed these and revised the Outlook to Negative: BankUnited FSB -- Short-term IDR at 'B'; -- Support at '5; -- Support Floor at 'NF'. BANKUNITED TRUST: Moody's Downgrades Rating on Three Tranches ------------------------------------------------------------- Moody's Investors Service downgraded the ratings of three tranches from BankUnited Trust 2005-1. The collateral backing these classes consists of primarily first lien, adjustable-rate negative amortizing Alt-A mortgage loans. The ratings were downgraded and placed under review for downgrade based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. In its analysis Moody's has also applied its published methodology updates to the non delinquent portion of the transaction. Complete rating action are: Issuer: BankUnited Trust 2005-1 -- Cl. B-3, Downgraded to Baa3, previously Baa2, -- Cl. B-4, Downgraded to B1, previously Ba2, -- Cl. B-5, Downgraded to Caa1, previously B2. BAUSCH & LOMB: Names Gerald M. Ostrov as Chairman and CEO --------------------------------------------------------- Bausch & Lomb Inc. has named Gerald M. Ostrov as chairman and chief executive officer, effective immediately. Most recently, Mr. Ostrov was company group chairman, Worldwide Vision Care, for Johnson & Johnson, where he led the company's global Vision Care businesses from 1998 to 2006. Current Chairman and CEO Ronald L. Zarrella, 58, will retire in March and serve as chairman emeritus. "It has been a privilege to serve as Bausch & Lomb's chairman and CEO since 2001," Mr. Zarrella said. "Working with thousands of highly talented employees worldwide, we were able to grow every aspect of the company while enhancing its reputation as the world's premier eye health brand. Jerry has extensive experience in ophthalmic businesses and consumer marketing, and is the ideal leader to take Bausch & Lomb into a new era of growth." Mr. Ostrov, 58, first joined Johnson & Johnson in 1976, before leaving for Ciba-Geigy AG in 1982. He was named president, Ciba Consumer Pharmaceuticals, in 1985. In 1991, he returned to Johnson & Johnson as president of its Personal Products business, and then became company group chairman for its North American Consumer and Personal Care businesses. "It's an honor to lead Bausch & Lomb into a growth period, one that we believe will be marked by considerable success across the vision care, pharmaceutical and surgical businesses," Mr. Ostrov said. "I'm impressed by the passion of the company's employees, and its strong relationships with industry partners and customers. We're going to build upon an unparalleled 155-year-old foundation of trust and innovation." "Warburg Pincus' commitment to a long-term investment horizon, and the collaborative relationship it has quickly built with Bausch & Lomb, is empowering the company to grow, Mr. Ostrov continued. "[The] eyeonics acquisition announcement is testament to our positive momentum." "We thank Ron for his dedication to Bausch & Lomb," Elizabeth H. Weatherman, a Warburg Pincus managing director and member of the Bausch & Lomb Board of Directors, commented. "He was instrumental in growing all aspects of the business, in leading the company through the 2006 recall, and then reestablishing widespread momentum -- an element vital for the organization's continued success. Jerry's extraordinary knowledge of the eye health industry will be instrumental as he leads Bausch & Lomb into an extended period of growth." Mr. Ostrov holds an M.B.A. from Harvard University and a B.S. degree in industrial engineering and operations research from Cornell University. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- is an eye health company whose core businesses include soft and rigid gas permeable contact lenses and lens care products, and ophthalmic surgical and pharmaceutical products. Founded in 1853, the company employs more than 13,000 people worldwide and its products are available in more than 100 countries. * * * Bausch & Lomb Inc. still carries Moody's Investors Service 'B2' corporate family, 'B1' bank loan debt, 'Caa1' senior unsecured debt, and 'B2' probability of default ratings, which were last placed on Oct. 5, 2007. BAUSCH & LOMB: Intention to Buy Eyeonics Won't Affect S&P's Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its rating on Bausch & Lomb Inc. (B+/Stable/--) is not affected by its intention to acquire Eyeonics Inc. S&P's analysis of the company's financial profile after the acquisition by Warburg Pincus incorporated some cushion for debt-financed acquisitions. In addition, the indication of EBITDA for 2007 exceeds S&P's expectations for the year and, as a result, 2007 debt to EBITDA should be more favorable than anticipated. Notwithstanding these factors, the acquisition may not be accretive in the near term given its (publicly undisclosed) cost. From a business perspective, eyeonics' crystalens intraocular lens will complement the company's portfolio of monofocal IOLs; currently, Bausch & Lomb is the only major player in the IOL market (Advanced Medical Optics Inc. and Alcon both offer multifocal IOLs) without a premium IOL. The crystalens U.S. IOL market share is estimated at about 30%. BEATY CORP: Case Summary & 17 Largest Unsecured Creditors --------------------------------------------------------- Debtor: The Beaty Corporation aka Beaty Construction Co., LLC 135 Goshen Extension, Suite 112 Rincon, GA 31326 Bankruptcy Case No.: 08-40139 Chapter 11 Petition Date: January 25, 2008 Court: Southern District of Georgia (Savannah) Judge: Lamar W. Davis Jr. Debtor's Counsel: J. Michael Hall, Esq. P.O. Box 647 Statesboro, GA 30459 Tel: (912) 489-2831 Estimated Assets: $1 Million to $10 Million Estimated Debts: $1 Million to $10 Million Debtor's list of its 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service $1,466,000 Bankruptcy Division 401 West Peachtree Street Northwest, Stop 334-D Atlanta, GA 30308-3539 BB&T Copperfield Estates $260,244 7 East Congress Street Suite 104 Savannah, GA 31406 Georgia Department of Revenue $250,000 P.O. Box 105499 Atlanta, GA 30308 Darby Bank & Trust Co. Foreclosure $31,754 Deficiency William Bros. Lumber Co. $18,656 Lisa Wright - Effingham City Lot 16 $5,745 Tax Commissioner Lot 15 $6,944 Lot 14 $4,876 Mark C. Batchelor and Foreclosed Property $208,000 Michelle E. Batchelor Secured: $200,000 Weiner Shearhouse Weitz $6,316 Greenberg Chatham County Tax 107 Horizon Park $5,360 Georgia Power $5,039 First Bank Mortgage Real Estate $84,256 Secured: $80,000 Yates-Astro $3,499 Progressive Express $3,223 Sears $3,094 Environmental Waterworks, Inc. $2,949 City of Savannah 107 Horizon Park $2,813 Department of Revenue Dewitt Cook & Associates Inc. $2,500 BELL MICROPRODUCTS: Has Until March 17 to Comply with Nasdaq ------------------------------------------------------------ Bell Microproducts Inc. has received the decision of the board of directors of The Nasdaq Stock Market LLC granting the company until March 17, 2008, to become compliant with the NASDAQ's filing requirement. The company's common stock continues to trade on the Nasdaq Global Market under the symbol "BELM," however, after March 17, 2008, NASDAQ has informed the company that if the company has not achieved compliance by that date, the company's securities will be suspended from trading at the opening of business on March 19, 2008, and a Form 25 will be filed with the SEC to effect the delisting of the company's common stock. Under instruction from a special committee of the company's board of directors, the company, together with outside accounting consultants, is working to review certain historical accounting practices regarding reserves, accruals and estimates and determine if adjustments are required, and if so, the amounts thereof. The special committee intends to review the results of the company's work when it is completed, conduct additional procedures as part of its ongoing review, and report the special committee's final conclusions regarding the causes and responsibility for the reported errors in accounting practices. At that time, the special committee will determine if additional remedial actions or disclosures are required. The company relates that, due to the scope of the work to be completed, it will be difficult to achieve compliance with NASDAQ's requirements by March 17, 2008, and therefore no assurances can be given that the company's common stock will remain listed after that date. About Bell Microproducts Headquartered in San Jose, California, Bell Microproducts Inc. (Nasdaq: BELM) -- http://www.bellmicro.com/-- is an international, value-added distributor of high-tech products, solutions and services, including storage systems, servers, software, computer components and peripherals, as well as maintenance and professional services. Bell is a Fortune 1000 company that has operations in Argentina, Brazil, Chile and Mexico. * * * The company has received waivers from its lenders into March 2008 relating to the filing of financial reports with the SEC and the provision of audited financial reports. BOBBY PERRY: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------- Debtors: Bobby J. Perry dba Perry Electronic Tax Service dba Perry's Auto Sales Perry Plaza fdba Big Momas Preschool Youlanda Perry aka Youlanda Carter aka Youlanda Williams 24 Ashton Cv. Jackson, TN 38305 Bankruptcy Case No.: 08-10319 Chapter 11 Petition Date: January 25, 2008 Court: Western District of Tennessee (Jackson) Judge: G. Harvey Boswell Debtors' Counsel: Michael T. Tabor, Esq. Madison Co 203 South Shannon P.O. Box 2877 Jackson, TN 38302-2877 Tel: (731) 424-3074 Estimated Assets: $500,000 to $1 Million Estimated Debts: $1 Million to $10 Million Debtors' list of their 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ DSC Certain Vehicles $197,646 1760 Moriah Woods Boulevard, Suite 7 Memphis, TN 38117 Manheim Automotive Financing Certain Vehicles $83,000 P.O. Box 930725 Atlanta, GA 31193 First State Bank First Mortgage 370 $242,437 115 West Washington Avenue Cumberland Street ($183,600 P.O. Box 806 Jackson, TN secured) Union City, TN 38261 GMAC Financial Services $32,000 Citifinancial - Hanover $20,826 Beneficial Finance $17,486 IRS Taxes $16,000 Community Choice $15,201 American General 126 Lawrence Alley $48,974 Jackson, TN ($35,600 secured) West Tennessee Mortgage $11,000 IFC Credit Corp 1 Laptop; 8 computers; $14,000 1 copier; 1 server ($4,000 server) AFC Memphis $10,000 Wells Fargo - Des Moines $9,424 Citifinancial - Wilmington $9,146 Wells Fargo - Carol Stream Computer $9,771 ($1,000 secured) Citifinancial Retail Services $7,000 Hallmark Credit $5,531 Applied Card Bank $5,426 UP/Regions 12 Beverly Hills $123,168 Drive, Jackson, TN ($117,900 secured) BOSTON HILL: Judge Feeney Dismisses Chapter 11 Case --------------------------------------------------- The Honorable Joan N. Feeney of the U.S. Bankruptcy Court for the District of Massachusetts dismissed Boston Hill Realty Trust's Chapter 11 Case. Judge Feeney said that the Debtor failed to update and timely file its schedules of assets and liabilities and statement of financial affairs. As reported in the Troubled Company Reporter on Jan. 11, 2008, Judge Feeney have extended the period in which the Debtor may file its schedules and statements until Jan. 15, 2008. Kingston, Massachusetts-based Boston Hill Realty Trust owns and develops real estate. The Debtor filed for Chapter 11 Petition on Dec. 5, 2007 (Bankr. D. Mass. Case No. 07-17770). Earl D. Munroe at Munroe & Chew represents the Debtor in its restructuring efforts. The Debtor listed assets and debts between $10 million and $50 million. BROTMAN MEDICAL: Can Hire Kurtzman Carson as Claims Agent --------------------------------------------------------- Brotman Medical Center Inc. obtained authority from the United States Bankruptcy Court for the Central District of California to employ Kurtzman Carson Consultants LLC as its claims and noticing agent. As reported in the Troubled Company Reporter on Oct. 31, 2007, Kurtzman Carson is expected to: a. prepare and serve required notices in this Chapter 11 cases, including: i. a notice of the commencement of the case and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code; ii. a notice of the claims bar date; iii. notices of any hearings on a disclosure statement and confirmation of a Chapter 11 plan; and iv. other miscellaneous notices as the Debtor or the Court may deem necessary of appropriate for an orderly administration of the case. b. file with the clerk's office a declaration of services, within five business days after the services of a particular notice, that includes: i. an alphabetical list of persons on whom the firm served the notice, along with their addresses; and ii. the date and manner of service; c. maintain copies of all proofs of claims and proofs of interest filed in this case; d. maintain an official claims register in the case by docketing all proofs of claim and proofs of interest in a claims database that includes these information for each claim or interest asserted: i. 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; ii. date that proof of claim of proof of interest was received by the firm or the Court; iii. claim number assigned to the proof of claim or proof of interest; and iv. asserted amount and classification of the claim. e. implement necessary measures to ensure the completeness and integrity of the claims register; f. audit the claims information to assure the clerk's office that the claims information is being appropriately and accurately recorded in the official claims register; g. allow the clerk's office to independently audit the claims information during regular business hours; h. mail a notice of the bar date approved by the Court for the filing of a proof of claim and a form for filing of a proof of claim to each creditor notified of the filing; i. transmit to the clerk's office a copy of the claims register on a bi-weekly basis or at other times as the clerk's office may direct; j. maintain an up-to-date mailing list for all entities that have filed proofs of claim or proofs of interest and make list available upon request to the clerk's office or any party in interest; k. provide the public and the clerk's office access to copies of the proofs of claim or proofs of interest filed in this Chapter 11 case without charge during regular business hours; l. allow the clerk's office to inspect the firm's premises during regular business hours; m. record all transfers of claims pursuant to Bankruptcy Rule 3001(e) and provide notice of the transfers as required by Bankruptcy Rule 3001(e); n. comply with applicable federal, state, municipal and local statutes, ordinances, rules, regulations, orders and other requirements; o. provide temporary employees to process claims as necessary; p. comply with further conditions and requirements as the clerk's office or the Court may at any time prescribe; and q. provide other claims processing, noticing, and related administrative services as may be requested from time to time by the Debtor. The Debtor told the Court that it paid $20,000 retainer to the firm for services performed. Document filed with the Court did not disclosed the firm's compensation rates. Sheryl R. Betance, the director of restructuring services of the firm, assured the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Ms. Betance can be reached at: Sheryl R. Betance Kurtman Carson Consultants LLC 2335 Alaska Avenue El Segundo, CA 90245 Tel: (310) 823-9000 Fax: (310) 823-9133 http://www.kccllc.net/ Headquartered in Culver City, California, Brotman Medical Center Inc. -- http://www.brotmanmedicalcenter.com/-- provides range of inpatient and outpatient services, as well as rehabilitation, psychiatric care and chemical dependency. The company filed for Chapter 11 protection on Oct. 25, 2007 (Bankr. C.D. Calif. Case No. 07-19705). Courtney E. Pozmantier, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin, Bogdanoff & Stern, L.L.P., The Debtor selected Kurztman Carson Consultants LLC as its claims agent. The U.S. Trustee for Region 16 appointed nine creditors to serve on a Official Committee of Unsecured Creditors in this case. Buchalter Nemer represents the Creditors Committee. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. BUILDING MATERIALS: Sept. 30 Balance Sheet Upside-Down by $13.1MM ----------------------------------------------------------------- Building Materials Corporation of America's consolidated balance sheet at Sept. 30, 2007, showed $2.49 billion in total assets and $2.51 billion in total liabilities, resulting in a $13,173,000 total stockholders' deficit. The company reported a net loss of $11.2 million in the third quarter ended Sept. 30, 2007, compared to net income of $17.1 million in the same period ended Oct. 1, 2006. The company's net loss in the third quarter of 2007 included $21.9 million of after-tax restructuring and other expenses, of which $5.0 million after-tax was included in cost of products sold related to the integration of ElkCorp operations. Included in restructuring and other expenses are plant closing expenses related to the closure of several manufacturing facilities together with the write-down of plant assets at these facilities, integration related costs and the write-down of selected inventories. Excluding these items, third quarter of 2007 net income was $10.7 million, which included the results of operations of Elk. The decrease in reported net income for the third quarter of 2007 was primarily attributable to approximately $28.5 million of higher interest expense and restructuring and other expenses due to the acquisition of Elk. The company had income before interest expense and income taxes in the third quarter of 2007 of $25.7 million compared to income before interest expense and income taxes of $43.3 million in the third quarter of 2006. Income before interest expense and income taxes in the third quarter of 2007 was positively affected by the operating results of Elk, lower raw material costs, including asphalt, and lower selling, general and administrative expenses mostly due to a decline in volume related distribution costs, which was more than offset by a decrease in net sales of residential roofing products. Net sales for the third quarter of 2007 were $680.7 million, which included net sales related to Elk compared to third quarter of 2006 net sales of $530.3 million. Excluding net sales of Elk, the decrease in third quarter of 2007 net sales was primarily due to lower net sales of residential roofing products primarily driven by lower unit volumes resulting from softer market demand. Earnings before interest expense, income taxes, depreciation and amortization of intangibles and other assets for the third quarter of 2007 was $47.5 million as compared to $56.7 million for the third quarter of 2006. First Nine Month Results For the first nine months of 2007, BMCA announced a net loss of $70.9 million compared to net income of $47.6 million in the first nine months of 2006. The company's net loss in the first nine months of 2007 included $67.3 million of after-tax restructuring and other expenses, of which $12.4 million after-tax was included in cost of products sold related to the integration of Elk operations and $16.0 million of after-tax debt restructuring costs also related to the acquisition. Excluding these items, the first nine months of 2007 net income was $12.4 million, which included Elk's operations from the date of acquisition. The decrease in reported net income for the first nine months of 2007 was primarily attributable to approximately $92.8 million of higher interest expense and restructuring and other expenses due to the acquisition of Elk. Income before interest expense and income taxes in the first nine months of 2007 was $36.4 million compared to $123.2 million in the first nine months of 2006. Income before interest expense and income taxes in the first nine months of 2007 was positively affected by the operating results of Elk, lower raw material costs, including asphalt, and lower selling, general and administrative expenses mostly due to a decline in volume related distribution costs, which was more than offset by a decrease in net sales of residential roofing products and commercial roofing products. Net sales for the first nine months of 2007 were $1.87 billion, which included net sales related to Elk from the date of acquisition compared to the first nine months of 2006 net sales of $1.57 billion. Excluding net sales of Elk, the decrease in the first nine months of 2007 net sales was primarily due to lower net sales of both residential and commercial roofing products. The decrease in net sales of residential roofing products was primarily driven by lower unit volumes resulting from the softer market demand, while the decrease in commercial roofing products was primarily driven by lower unit volumes, partially offset by a higher average selling price. EBITDA for the first nine months of 2007 was $93.5 million as compared to $161.9 million for the first nine months of 2006. Cash Position/Long-Term Debt At Sept. 30, 2007, cash and cash equivalents amounting to $34.5 million were on hand, and long-term debt including current maturities was $1.86 billion, which amount includes $281.0 million outstanding under the company's $600.0 million Senior Secured Revolving Credit Facility. 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?2770 About Building Materials Based in Wayne, New Jersey, Building Materials Corporation of America -- http://www.gaf.com/-- is a manufacturer of residential and commercial roofing products and specialty building products with pro-forma annual net sales of approximately $2.9 billion. BMCA operates under the name GAF Materials Corporation and distributes its product under the GAF and GAF-ELK brand names. * * * As reported in the Troubled Company Reporter on Jan. 14, 2008, Standard & Poor's Ratings Services placed its ratings on Building Materials Corp. of America, including its 'BB-' corporate credit rating, on CreditWatch with negative implications. CAPITAL LAND: Ch. 11 Trustee Taps CB Richard as Property Broker --------------------------------------------------------------- Lisa M. Poulin, the appointed Chapter 11 Trustee for Capital Land Investors LLC asks the United States Bankruptcy Court for the District of Nevada for permission to employ CB Richard Ellis Inc. as property broker. CB Richard will: a) provide advice and assistance in structuring the offering price and terms as required by the Trustee; b) screen inquiries from prospective purchasers and brokers; c) offer the property to prospective purchasers; d) negotiate, in coordination with the Trustee, and to the extent requested and required by the Trustee, the terms and conditions of the sale of property; e) prepare a brochure and other marketing metarials to facilitate sale of the property; and f) other functions as requested by the Trustee or her counsel in connection with this case. The Trustee tells the Court that the firm will receive a sales commission of 4% of the gross sales price. To the best of the Trustee's knowledge the firm does not hold any interest adverse to the Debtor and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Capital Land Las Vegas, Nevada-based Capital Land Investors LLC owns and manages real estate. It is a single asset real company whose primary assets is located in Perris, California, a 695-acre unimproved land intended for development into a residential community. The property is presently in the late stages of the entitlement phase. Under an operating agreement, Capital Land's members are USA Investment Partners LLC (holds 25% membership); Jabral Investments LLC (25%); The Richard Craig Ashby Irrevocable Trust UTD July 27, 1998 (6.25%); The Bradly Ashby Irrevocable Trust UTD July 27, 1998 (6.25%); and The Justin Ashby Irrevocable Trust UTD July 27, 1998 (6.25%). On April 4, 2007, USA Capital Diversified First Trust Deed Fund LLC, USACM Liquidating Trust, and Alabruj Investments LLC filed involuntary petition for relief under chapter 11 against USAIP, Capital Land's affiliate. Lisa M. Poulin, in her capacity as chapter 11 case trustee of USAIP, with the consent of Capital Land's remaining members, caused Capital Land to file voluntary bankruptcy petition. The Debtor filed for chapter 11 protection on Dec. 4, 2007 (Bankr. D. Nev. Case No. 07-18099). Lisa M. Poulin is the proposed chapter 11 trustee for Capital Land. Talitha B. Gray, Esq., at Gordon & Silver Ltd. represents the Debtor in its restructuring efforts and is also the proposed counsel for the case trustee. Peter C. Bernhard, Esq., and Georganne W. Bradley, Esq., at Bullivant Houser Bailey PC serve as the Debtor's local counsels. The Debtor's schedules showed total assets of $30,000,321 and total liabilities of $63,522,426. On Jan. 24, 2008, the Court appointed Lisa M. Poulin as Chapter 11 Trustee for the Debtor. CBRL GROUP: Board Okays Repurchase of Additional 625,000 Shares --------------------------------------------------------------- CBRL Group Inc.'s board of directors has authorized the repurchase up to 625,000 additional shares of its common stock. These repurchases are expected to be made from time to time in open market transactions at then-prevailing market prices. The company, at some point, could adopt a 10b5-1 trading plan to implement the purchases but has not done so at this time. The company has repurchased one million shares of its common stock for total consideration of approximately $34.1 million, or an average of $34.12 per share in this second quarter of fiscal 2008. "At current price levels, we believe the true value of CBRL clearly is not reflected in its stock price, based upon current performance or future potential," Michael A. Woodhouse, the company's chairman, president and chief executive officer, said. "The share repurchase program affirms the company's ongoing commitment to increasing shareholder value." Headquartered in Lebanon, Tennessee, CBRL Group Inc. (NASDAQ: CBRL) -- http://www.cbrlgroup.com/-- operates 564 Cracker Barrel Old Country Store)R) restaurants and gift shops located in 41 states. * * * Moody's Investor Service placed CBRL Group Inc.'s long term corporate family and bank loan debt ratings at 'Ba2' in April 2006. The ratings still hold to date with a negative outlook. CERRO NEGRO: Moody's Vacates B3 Rating After Tender Offer Success ----------------------------------------------------------------- Moody's Investors Service has withdrawn the B3 rating of Cerro Negro Finance, Ltd. following Cerro Negro's successful tender offer for its debt. Over 99% of bondholders accepted the offer to redeem their bonds for par plus a premium equal to one-third of the early call premium specified in the indenture. The tender offer followed the nationalization of the project last June. The offer was accompanied by a consent solicitation requesting bondholder approval of amendments to the indenture which required the approval of a minimum of 75% of bondholders to take effect. Among other changes, the amendments eliminated all restrictive covenants, events of default other than payment defaults, and the trustee-administered waterfall of accounts, and released all of bondholders' collateral and security interests. Moody's recognizes that the terms of the tender offer were negotiated between PDVSA (the Venezuelan state-owned oil company) on behalf of Cerro Negro and holders of approximately 80% of the debt and that remaining bondholders were not forced to accept it. In Moody's opinion, however, all bondholders were entitled to the full early redemption premium specified in the indenture, and the terms of the consent solicitation did not leave any bondholders who may have been unhappy with the tender offer a reasonable alternative. Despite the fact that bondholders received in excess of par, Moody's deems the tender offer to have been a distressed exchange in light of its terms and the circumstances surrounding it. According to Moody's definition, this constitutes an event of default though it may not have been considered so under the terms of the indenture itself. Cerro Negro Finance, Ltd. is a Cayman Islands special purpose financing vehicle for the $1.9 billion Cerro Negro extra-heavy oil project in Venezuela. Under an association agreement with the government, the project was designed to develop, transport, upgrade and market extra-heavy crude from the Orinoco belt in southeastern Venezuela. Prior to the project's nationalization, sponsor/off-takers were Exxon Mobil (41.67%), PDVSA (41.67%) and BP (16.67%). In addition to upstream field facilities the project includes two parallel pipelines and facilities to upgrade product at the Jose industrial complex on the Caribbean coast of Venezuela. The Cerro Negro project is also one of four extra heavy crude oil projects operating in the Orinoco region of Venezuela that have been developed over the past decade. Following the announcement of the impending assumption of majority ownership of the projects by PDVSA, the other three (Hamaca, Petrozuata, Sincor) were downgraded to B2 on June 27 (at which point they were also placed under review for further downgrade). Hamaca's rating was withdrawn on December 19 following the repayment of all of its debt. Moody's has not yet concluded its review of Petrozuata and Sincor's ratings. CHASEFLEX TRUST: Fitch Junks Rating on 2007-1 Class B-4 Trust ------------------------------------------------------------- Fitch Ratings has affirmed two and downgraded four classes from Chaseflex Trust 2007-1: Series 2007-1 -- Class A affirmed at 'AAA'; -- Class M affirmed at 'AA'; -- Class B-1 downgraded to 'A-' from 'A' -- Class B-2 downgraded to 'BB+' from 'BBB'; -- Class B-3 downgraded to 'B' from 'BB' and placed on Rating Watch Negative; -- Class B-4 downgraded to 'C/DR5' from 'B'. The affirmations affect approximately $379.8 million in outstanding certificates and reflect adequate relationships of credit enhancement to future loss expectations. The downgrades reflect the deterioration in the relationship of CE to future loss expectations and affect $12.5 million in outstanding certificates. In addition, $2.2 million is placed on Rating Watch Negative. The underlying collateral for the transaction consists primarily of 30-year, fixed-rate, fully amortizing, first-lien residential mortgage loans extended to prime borrowers. The mortgage loans were either originated or acquired by JP Morgan Chase. As of the December 2007 distribution date, the transaction is 11 months seasoned and the pool factor is 88%. Percentage of loans delinquent 60 days or more is 3.77%. CHEMTURA CORP: Selling Oleochemicals Business to PMC Group ---------------------------------------------------------- Chemtura Corporation has reached agreement to sell its oleochemicals business to PMC Group NA Inc. for an undisclosed amount, subject to financing and other conditions including customary closing conditions. Included in the transaction is Chemtura's production facility at Memphis, Tennessee. Proceeds from the sale will be used primarily for debt reduction. The transaction is expected to close by the end of the first quarter. The oleochemicals business had revenues for 2007 of approximately $175 million. "This transaction will be another step in improving our polymer additives business by strategically divesting product lines to better focus on the products and businesses where we have our greatest strengths and leading market positions," Robert L. Wood, Chemtura chairman and CEO, said. "PMC Group NA Inc. is committed to this business and its growth, which will be an advantage to both customers and employees." Chemtura's Memphis facility has about 260 employees, who are expected to transfer to PMC Group NA Inc. The facility produces fatty acids, fatty esters, glycerin approved for pharmaceutical applications, glycerol esters, amides, bisamides, stearates and triglycerides. The Memphis plant is the only producer of primary amides in North America for the plastics additives market. About Chemtura Corporation Headquartered in Middlebury, Connecticut, Chemtura Corp. (NYSE:CEM) -- http://www.chemtura.com/-- is a manufacturer and marketer of specialty chemicals, crop protection, and pool, spa and home care products. The c