T R O U B L E D C O M P A N Y R E P O R T E R Friday, February 1, 2008, Vol. 12, No. 27 Headlines 3700 ASSOCIATES: In Talks with Hyatt and Marathon on $3BB Project ACANTO SADDLEBACK: Case Summary & 26 Largest Unsecured Creditors ADAPTEC INC: Earns $1.1 Million in Quarter Ended December 31 ALEXIA CRAWFORD: Case Summary & 20 Largest Unsecured Creditors AMERICAN NATURAL: March 31 Balance Sheet Upside-Down by $15.7 Mil. ANNTAYLOR STORES: Moody's Withdraws 'Ba1' Corporate Family Rating ARVINMERITOR INC: Posts $12MM Net Loss in Qtr. Ended Dec. 30 B J R HOLDINGS: Case Summary & 19 Largest Unsecured Creditors BARNET HOSPITAL: Panel Taps Rosenthal as Real Estate Appraiser BAYOU GROUP: Investors Balk at Offshore Funds Panel's Fee Requests BAYOU GROUP: Various Parties Argue Over Distribution of Funds BEXAR COUNTY: Moody's Cuts Rating on $14.8MM Revenue Bonds to Ba2 BIOPURE CORP: Ernst & Young Expresses Going Concern Doubt BNG HOLDINGS: Case Summary & Three Largest Unsecured Creditors BUFFETS HOLDINGS: Section 341(a) Meeting Scheduled for February 3 BUFFETS HOLDINGS: U.S. Trustee Appoints 7-Member Creditors Panel CALPINE CORP: Emerges from Chapter 11 in New York CATHOLIC CHURCH: Davenport Files Ch. 11 Plan of Reorganization CCI OF WEST PALM: Selling 19 TGI Friday's Restaurants on Feb. 26 CONSOL ENERGY: Earnings Drop to $6.8 Mil. in Qtr. Ended Dec. 31 DELTA PETROLEUM: Stockholders' to Meet Feb. 19 on Tracinda's Offer DENISON COMMUNICATIONS: Voluntary Chapter 11 Case Summary FEDDERS CORP: Bidding Procedure OK'd for Sale of Unit's Assets FIRST UNION: Fitch Keeps 'B' and 'CCC' Ratings on Class B Certs. FORD MOTOR: Nears Deal w/ Tata Motors on Jaguar & Land Rover Sale GLOBAL BEVERAGE: To Repurchase 60.5MM Shares from XStream Beverage GLOBAL MOTORSPORT: Case Summary & 35 Largest Unsecured Creditors GO FIG: Section 341(a) Meeting Scheduled for February 11 GO FIG: Wants to Hire Capes Sokol as General Bankruptcy Counsel GO FIG: U.S. Trustee Appoints Seven-Member Creditors Committee HAWAIIAN AIRLINES: Gets Extra $3.9MM from Mesa Air for Legal Fees HAWAIIAN TELCOM: Moody's Upgrades Rating on $150 Million Sr. Notes HERCULES INC: Debt Reduction Efforts Cue Moody's Ba2 Rating Review HILLEN REAL: Voluntary Chapter 11 Case Summary HILLTOP SPORTS: Voluntary Chapter 11 Case Summary IAC/INTERACTIVE CORP: Spin-Off Plans Cue S&P to Review Ratings IAP WORLDWIDE: Moody's Junks Ratings; Revises Outlook to Negative ICEFLOE TECHNOLOGIES: Files an Assignment in Bankruptcy Under BIA JOHNSON RUBBER: Judge Baxter OKs McGuireWoods as Panel's Counsel KAUFMAN COUNTY: Taps Eric A. Liepins PC as Bankruptcy Counsel LIBERTY TAX LP: Dec. 31 Balance Sheet Upside-Down by $28.4 Million LIONEL LLC: Court Okays Pay Scheme for CEO Jerry Calabrese MAJESCO ENTERTAINMENT: Posts $961,000 in 4th Quarter Ended Oct. 31 MAYERLING LLC: Voluntary Chapter 11 Case Summary MARKET PLACE: Voluntary Chapter 11 Case Summary MCLAURIN & BRAD: Case Summary & Four Largest Unsecured Creditors MILAGRO ENERGY: Defaults on $7.5 Million Convertible Debentures MLW LLC: Voluntary Chapter 11 Case Summary MOHEGAN TRIBAL: Eyes Acquisition of Tropicana and Trump Marina MOUNT SINAI MEDICAL: Moody's Maintains 'Ba1' Long-Term Ratings NORTHWEST AIRLINES: Completes Acquisition of Midwest Air Group PACIFIC LUMBER: Obtains Court Nod to Sell Redwood Lumber to Mirada PACIFIC LUMBER: Wants BoNY's Request for Ch. 11 Trustee Dismissed POINT THERAPEUTICS: Stockholders' Meeting Adjourned to February 12 POINT THERAPEUTICS: Gets Additional Nasdaq Non-Compliance Notice POLAR MOLECULAR: Section 341(a) Creditors Meeting Set for Feb. 20 POLAR MOLECULAR: Taps Quinn & Coles as Bankruptcy Counsel PUBLICARD INC: Emerges from Bankruptcy as Chazak Value Corp. RENAISSANCE GRAND: Restructuring Plans to be Released by February SCO GROUP: Tanner LC Expresses Going Concern Doubt SCRIPPS VINEYARDS: Files Schedules of Assets & Liabilities SCRIPPS VINEYARDS: Section 341 Creditors' Meeting Set for Feb. 12 SEQUOIA MORTGAGE: Fitch Downgrades Ratings on Seven Certificates SHARPE LLC: Can Employ Kutner Miller as Bankruptcy Counsel SHARPE LLC: Section 341(a) Creditors Meeting Set for Feb. 13 SMART MODULAR: Moody's Lifts Corporate Family Rating to B1 From B2 SOUTH COAST: Moody's Junks Rating on $26 Million Class B Notes SOUTH COAST: Moody's Downgrades Rating on $32.5 Million Notes SPORTSSTUFF INC: Panel Can Employ McGrath North as Bankr. Counsel SPORTSSTUFF INC: Wants to Use Sun Pleasure's Cash Collateral TAYLOR CAPITAL: Fitch Chips Issuer Default Rating to BB+ From BBB- TOUSA INC: Gets Interim Court Nod for $135 Million Financing TROPICANA ENT: Trustee Files Suit; Demands Payment of Sr. Notes UNIVERSAL FOOD: Court Decrees $6 Mil. Payment to Secured Lenders US AIRWAYS: Moves Assume or Reject Deal Hearing to February 21 US AIRWAYS: Names Dion Flannery as US Airways Express President US ENERGY: Wants to Hire Hunton & Williams as Bankruptcy Counsel US ENERGY: Wants Court Nod on Jefferies as Financial Advisor USA INVESTMENT: Plan Confirmation Hearing Set on Monday USG CORP: Posts $28 Million Net Loss in for Fourth Qtr. 2007 VENTAS INC: Agrees to Sell 3.9 Million Shares to UBS Investment VICORP RESTAURANTS: To Delay Filing of 2007 Annual Report VICORP RESTAURANTS: S&P Slashes Rating to CCC on 10-K Filing Delay WELLS FARGO: Fitch Rates Eight Series 2008-1 Certificates at Low-B * John Finnegan Joins Chadbourne & Parke in New York as Partner * Marsh & McLennan Appoints Brian Duperreault as President and CEO * Michael G. Cortina Joins SmithAmundsen as Partner * William Yonge Joins Proskauer Rose as Partner in London * Key Drivers FTI Consulting Says Will Affect 2008 Restructurings * BOOK REVIEW: Bankruptcy Investing: How to Profit from Distressed Companies (Revised Edition) ********* 3700 ASSOCIATES: In Talks with Hyatt and Marathon on $3BB Project ----------------------------------------------------------------- 3700 Associates LLC is presently discussing with partners, Hyatt Corp. and Marathon Asset Managmement, regarding the $3 billion development project of the Cosmopolitan Resort & Casino in Las Vegas, The Wall Street Journal reports, citing sources familiar with the matter. The talks follow news of Ian Bruce Eichner at 3700 Associates receiving a default notice from Deutsche Bank AG regarding a $760 million construction loan, WSJ relates. According to WSJ's sources, one of the possibilities is for Global Hyatt and Marathon to buy the project. Hyatt had declared a transaction with Mr. Eichner in hopes to manage the unfinished hotel, WSJ says. Yesterday, Mr. Eichner told WSJ that the talks are still ongoing and indicated the likelihood that talks "will go forward." With this news, WSJ speculates that a foreclosure on the property will not push through and save Mr. Eichner from becoming among "the first big commercial real estate failures" brought by the financial crisis. Mr. Eichner asserted he wants the hotel construction to be completed as originally planned and that "he would be very satisfied" if Hyatt and Marathon will take over the project. Meanwhile, Marathon spokesman told WSJ that Marathon is considering options to complete the project, including acquiring it. On the other hand, Hyatt spokeswoman refused to give comment saying deals are yet to be confirmed, WSJ adds. Deutsche Bank AG holds the $760 million senior mortgage while Hyatt and Marathon hold junior debt totaling about $175 million, WSJ reveals, citing sources knowledgeable with the issue. WSJ's sources adds that should the property be foreclosed, Hyatt and Marathon's mortgages "could be wiped out." Deutsche Bank to Fund Hotel's Construction As reported in the Troubled Company Reporter on Jan. 23, 2008, Perini Building Company, Inc., a wholly owned subsidiary of Perini Corporation said it has in place an interim commitment with Deutsche Bank AG. Under the interim commitment, Deutsche Bank will continue to pay Perini for performing the construction work on the Cosmopolitan Resort and Casino project in Las Vegas, Nevada on a monthly basis while the issues of loan default with the developer, 3700 Associates LLC, are being resolved. As a result, the work at the Cosmopolitan will continue unaffected by the default notice. 3700 Associates Gets Default Notice The TCR said on Jan. 18, 2008, 3700 Associates was issued a foreclosure notice by Deutsche Bank AG. Perini confirmed that Deutsche Bank, on Jan. 16, 2008, delivered a notice of loan default to 3700 Associates. Perini Building is the general contractor for the project which is scheduled for completion in December of 2009. At that time, Perini was in discussion with 3700 Associates and Deutsche Bank, to facilitate an orderly continuation of construction of the project. As of Dec. 31, 2007, work remaining to be performed under the construction contract totaled approximately $1.4 billion. About 3700 Associates The 3700 Associates LLC is a real estate developer owned by Ian Bruce Eichner. It is currently developing Cosmopolitan Resort & Casino, a 3,000-room high-rise casino and hotel due to open in late 2009 between the Bellagio casino resort and the CityCenter casino complex. The project cost, initially valued at $1.8 billion, has ballooned to $3 billion. On Oct. 11, 2005, 3700 Associates signed a $1 billion construction contract with Perini Building Company, Inc., a subsidiary of Perini Corporation -- (NYSE: PCR) -- http://www.perini.com/-- also a construction services company. ACANTO SADDLEBACK: Case Summary & 26 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Acanto Saddleback Homes, L.L.C. 1300 Quail Street, Suite 110 Newport Beach, CA 92660 Bankruptcy Case No.: 08-10426 Chapter 11 Petition Date: January 30, 2008 Court: Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Robert P. Goe, Esq. Goe & Forsythe, L.L.P. 660 Newport Center Drive, Suite 320 Newport Beach, Ca 92660 Tel: (949) 467-3780 Fax: (949) 721-0409 Total Assets: $10 Million to $50 Million Total Debts: $1 Million to $10 Million Debtor's 26 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Hy-Tech Tile $313,195 Attention: Mike Postolache 1355 Talmyrita Avenue Riverside, CA 92507 Tel: (951) 788-0550 Fax: (951) 788-0551 B.A.S. Appliances-K.I.V.A. $137,538 Attention: Managing Member 1745 North St. Thomas Circle Orange, CA 92865 Parker Rose Design $88,216 Attention: Daniel Horwitz 110 West Central Street San Diego, CA 92101 Canyon View Pools- $83,962 Farley Paving West Coast Drywall/Painting $64,895 Tandem West Glass $57,000 Canyon View Pools-Flores $41,076 Landscaping Canyon View Pools-Randy Myers $37,270 Canyon View Pools-Rammel $35,822 Plaster Don Hegge Electric $35,528 R.C.R. $30,426 Pat's Lighting $26,624 Kerdus Plastering $24,564 Wallis Tile $21,700 Kitchen Idea $18,296 Signature Doors $18,178 Guy Evans $14,418 Glazcon-Henry's Glass $14,085 Designs by Lucinda $14,040 Pacific Shores Masonry $13,894 Cedar Crest Overhead Doors $4,945 Home Buyers Guide $3,189 Canyon View Pools-United $2,293 Rentals R.G.A. $1,950 Coast Magazine $1,400 Canyon View Pools unstated ADAPTEC INC: Earns $1.1 Million in Quarter Ended December 31 ------------------------------------------------------------ Adaptec Inc. has reported its financial results for the third quarter of fiscal 2008, which ended on Dec. 31, 2007. The company's balance sheet for quarter ended Dec. 31, 2007 reflected a total assets $695.5 million, total liabilities of $275.4 million and shareholder's equity of $420.1 million. Net revenue for the company's third quarter of fiscal 2008 was $41.2 million, compared with $60.7 million for the third quarter of fiscal 2007. Net income for third quarter of fiscal 2008 were at $1.1 million, or $0.01 per share, compared to $6.4 million, or $0.05 per share, of quarter ended Dec. 31, 2006. "Although we are not satisfied with the current revenue trajectory, we are very pleased with our product development efforts during the past few quarters," S. Sundaresh, president and chief executive officer of Adaptec said. "We have a broad array of award-winning products which we will expand further during our next fiscal quarter." "Furthermore, we remain focused on improving our operating model and maintaining the strength of our balance sheet," S. Sundaresh added. "I am happy to note that the entire team is working diligently to brighten Adaptec's future." About Adaptec Headquartered in Milpitas, California, Adaptec Inc. (NASDAQ: ADPT) -- www.adaptec.com -- provides storage solutions that move, manage, and protect data and digital content. Adaptec's software and hardware-based solutions are delivered through original equipment manufacturers and channel partners to provide storage connectivity, data protection, and networked storage to enterprises, government organizations, medium and small businesses worldwide. * * * Moody's Investors Service assigned its 'B1' issuer default and long-term corporate family rating with a negative outlook on April 2, 2001. That rating action still holds to date. ALEXIA CRAWFORD: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Alexia Crawford Retail, LLC dba Laila Rowe 350 W. 36th Street, 6th floor New York, NY 10018 Bankruptcy Case No.: 08-11559 Type of Business: The Debtor sells jewelry accessories. See: http://www.lailarowe.com/ Chapter 11 Petition Date: January 30, 2008 Court: District of New Jersey (Newark) Judge: Novalyn L. Winfield Debtors' Counsel: Daniel Stolz, Esq. Wasserman, Jurista & Stolz 225 Millburn Ave., Suite 207 P.O. Box 1029 Millburn, NJ 07041-1712 Tel: (973) 467-2700 http://www.wjslaw.com/ Total Assets: $2,404,481 Total Debts: $4,864,290 Consolidated Debtors' List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Applause Contemporary Jewelry trade debt $427,931 Ltd. Hang Seng Bank, Tsimshatsui Branch 18 Carnarvon Road, Hong Kong Tri River Design & trade debt $416,267 Construction 2840 Library Road, Suite 300 Pittsburgh, PA 15234 Alexia Crawford, Inc. $376,559 35 West 36th Street New York, NY 10018 Lyla Associates, LLC - 17th trade debt $153,004 Street Williams USA Realty Services trade debt $148,104 Co., Inc. NYS Sales Tax sales tax $118,774 Brusco Enterprises, Inc. - trade debt $118,035 Columbus Ave Fenwick-Keats Management, Inc. Bi-Coastal Properties, Inc. trade debt $115,625 Uniway Partners L.P. trade debt $112,403 A/A/F W & M Properties Chase trade debt $101,063 Atlas Park, LLC. trade debt $95,524 Qingdao Jikimi Jewelry Co., trade debt $82,130 LTD Gumiaotoucun, Cheng Yang Jiedao Chengyangqu Qingdao L&M 2190 LLC - Broadway trade debt $78,418 Excell Customs Brokers trade debt $75,324 201 East 61st Street trade debt $69,858 Evergreen Walk Lifestyle trade debt $67,695 Centers, LLC Annapolis Mall L.P. trade debt $52,694 Baltimore Center Associates LP trade debt $48,883 Harborplace SDS-12-2731 EklecCo NewCo LLC. trade debt $47,768 Washington Mutual Trade debt 42,790.19 Small Business Line AMERICAN NATURAL: March 31 Balance Sheet Upside-Down by $15.7 Mil. ------------------------------------------------------------------ American Natural Energy Corp. filed with the Securities and Exchange Commission on Jan. 29, 2008, its consolidated financial statements for the first quarter ended March 31, 2007. At March 31, 2007, the company's consolidated balance sheet at March 31, 2007, showed $7.7 million in total assets, $23.4 million in total liabilities, resulting in a $15.7 million total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $801,748 in total current assets available to pay $21.7 million in total current liabilities. The company reported a net loss of $466,730 for the first quarter ended March 31, 2007, compared with a net loss of $710,973 for the corresponding period ended March 31, 2006. Revenues were $340,389 for the first quarter ended March 31, 2007, compared with revenues of $586,911 for the corresponding period ended March 31, 2006. Revenues for the three months ended March 31, 2007, were lower as a result of decreased production and decreased oil and gas prices. Total expenses were $807,119 for the three months ended March 31, 2007, compared to $1.3 million for the three months ended March 31, 2006. General and administrative expenses were $311,686 and $531,835 for the three months ended March 31, 2007, and 2006, respectively. The decrease was primarily due to reduced fees for professional services. Interest and financing costs decreased from $319,739 for the three months ended March 31, 2006, to $242,794 for the three months ended March 31, 2007. Lease operating expenses of $62,664, production taxes of $20,706, and depletion, depreciation and amortization of $154,603 during the three months ended March 31, 2007, changed from $108,931, $36,981, and $315,691, respectively, during the three months ended March 31, 2006. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?279c Going Concern Doubt Malone & Bailey PC, in Houston, expressed substantial doubt about American Natural Energy Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that the company has incurred substantial losses during 2006, has a working capital deficiency and an accumulated deficit at Dec. 31, 2006, and is in default with respect to certain debenture obligations. About American Natural Based in Tulsa, Oklahoma, American Natural Energy Corporation (TSX Venture: ANR.U) -- http://www.annrg.com/-- was formed in January 2001 to focus on the acquisition, development and exploitation of oil and natural gas reserves. ANEC's objective is to grow an oil and natural gas reserve base through development, exploitation and exploration drilling within the current and future boundaries of its St. Charles Parish, Louisiana properties, including its ExxonMobil Joint Development area. ANNTAYLOR STORES: Moody's Withdraws 'Ba1' Corporate Family Rating ----------------------------------------------------------------- This rating of AnnTaylor Stores Corporation has been withdrawn: -- Corporate family rating of Ba1. AnnTaylor's senior secured revolving credit facility does not have a Moody's rating. Moody's has withdrawn these ratings for business reasons. Moody's added that the ratings were withdrawn because this issuer has no rated debt outstanding. ARVINMERITOR INC: Posts $12MM Net Loss in Qtr. Ended Dec. 30 ------------------------------------------------------------ ArvinMeritor Inc. reported $12 million net loss for three months ended Dec. 30, 2007, compared to $7 million net income for the same period in the previous year. At Dec. 31, 2007, the company's balance sheet showed total assets of $4.56 billion, total liabilities of $4.02 billion and total shareowners' equity of $0.54 billion. Free cash outflow of $305 million compared to an outflow of $64 million in the first quarter of fiscal year 2007. This represents negative cash flow from operations of $271 million in 2007 and $33 million in 2006, and capital expenditures of $34 million in 2007 and $31 million in 2006. "We demonstrated stronger operating performance this quarter despite Class 8 volumes being down approximately 50% in North America," Chip McClure, chairman, CEO and president said. "The actions we have implemented through our Performance Plus program, particularly in Europe, are gaining traction and driving improved EBITDA and margins." Business Highlights -- increased CVS EBITDA margins by six-tenths of a percentage point in the first quarter of fiscal year 2008 compared to the same period last year. -- acquired Mascot Truck Parts Ltd., a remanufacturer of transmissions, drive axle carriers, steering gears and drivelines, to drive the company's strategy to grow its Commercial Vehicle Aftermarket business. -- awarded new business to supply more than four million window regulator motors, 700,000 plastic door modules, and 700,000 Next Generation latch sets annually to Hyundai Motor Company beginning in 2010. -- amended the company's senior secured credit facility to offer greater flexibility and access to increased liquidity. About Arvinmeritor Headquartered in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. * * * As reported in the Troubled Company Reporter on Jan 14, 2008, Fitch Ratings has taken these rating actions on ArvinMeritor: (i) issuer default rating downgraded to 'B+' from 'BB-'; (ii) senior secured revolver affirmed at 'BB' and assigned 'RR1'; (iii) senior unsecured notes affirmed at 'B+' and assigned 'RR4'. The rating outlook is negative. The ratings affect approximately $1.1 billion of outstanding debt. B J R HOLDINGS: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: B J R Holdings Inc. aka R J Barthel Holdings Inc. dba Pine Cone Restaurant aka Ronald D. Barthel dba Big Steer South aka Anna H. Barthel dba Truckers Inn Travel Plaza dba Big Steer Travel Center dba Greater Midwestern Hospitality Group Inc. dba Windmill Vehicle and RV Travel Center dba Big Steer Travel Plaza LLC 100 State Highway 16 Dexter, MN 55926 Bankruptcy Case No.: 08-30394 Chapter 11 Petition Date: January 30, 2008 Court: District of Minnesota (St Paul) Judge: Dennis D O'Brien Debtors' Counsel: Dean K. Adams, Esq. Adams Rizzi & Sween 300 First Street N.W. Austin, MN 55912 Tel: (507) 433-7394 http://www.adamsrizzisween.com/ Total Assets: $0 Total Debts: $2,071,634 Consolidated Debtors' List of 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Eggens Direct trade $850,000 PO Box 115 Milaca, MN 56353 Martin Bros trade $281,246 PO Box 69 Cedar Falls, IA 50613-0010 MN Department of Revenue taxes $202,000 Stop 5700 316 N. Robert Street Saint Paul, MN 55101 Venture Fuels trade $147,405 Midwest Leasing lease $120,000 Cintas trade $110,000 Internal Revenue Service taxes $86,000 Baudoin Oil trade $80,000 Jefferson Lines computer $50,000 Magic Media trade $45,000 Pump and Meter trade $24,000 MN Petroleum Service trade $16,000 Triple C Technologies trade $15,249 Northwest Petroleum Svc trade $13,834 Sysco trade $10,000 Dynamic Electric trade $9,000 Q S C of Northfield Inc trade $6,000 Rivercity Refrigeration trade $3,900 Mid America Mfg Dist trade $2,000 BARNET HOSPITAL: Panel Taps Rosenthal as Real Estate Appraiser -------------------------------------------------------------- The Official Committee of Unsecured Creditors of Nathan and Miriam Barnert Memorial Hospital Association dba Barnert Hospital asks the United States Bankruptcy Court for the District of New Jersey for permission to employ Rosenthal Appraisal Co. Inc. as its real estate appraiser. The Committee tells the Court that Rosenthal Appraisal will analyze, compare and appraise the Debtor's properties. The Committee says that the firm will receive a flat fee of $15,000 for this engagement. Stuart Rosenthal, the principal of the firm, charges $250 per hour. Mr. Rosenthal assures the Court that the firm does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Rosenthal can be reached at: Stuart Rosenthal Rosenthal Appraisal Co. Inc. 6 West Railroad Avenue P.O. Box 460 Tenafly, New Jersey 07670 Tel: (201) 567-4300 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. BAYOU GROUP: Investors Balk at Offshore Funds Panel's Fee Requests ------------------------------------------------------------------ Investor defendants represented by Sonnenschein Nath & Rosenthal LLP wants the Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court for the Southern District of New York to deny the request of the Unofficial Creditors Committee of the Bayou Onshore Funds in the bankruptcy cases of Bayou Group LLC and its debtor- affiliates to collect pre-petition fees and expenses of the committee members. Reasons for Disallowing the Claim Sonnenschein Investors listed several reasons why the prepetition unofficial committee claims should be disallowed. First, Sonnenschein Investors relate, the claims were filed well after the bar date and are not individual claims. Although they purport to relate to previously filed claims, the prepetition unofficial committee claims are not amendments to claims but entirely new claims filed by the investors acting in a different capacity as committee members. At the request of the Debtors, Jan. 17, 2007, was set as the bar date for filing proofs of claim. Second, the claims are based on the common fund doctrine that is not applicable in the cases, Sonnenschein Investors say. The common fund doctrine is an equitable doctrine holding that a lawyer who creates or recovers a common fund for the benefit of persons other than himself and his clients is entitled to fees from that fund. Sonnenschein Investors contest that the lawyers for the prepetition committee and its members are not directly responsible for creating a fund. For a number of reasons, the members of the unofficial committee sought the appointment of a receiver in the United States District Court who, once appointed, commenced litigation. Sonnenschein Investors point that the committee members are several steps from having created a fund. Further, Sonnenschein Investors assert that the prepetition unofficial committee claims should be disallowed because they lack sufficient information and detail to support allowance under any theory of law or equity for prepetition attorney fees. Sonnenschein Investors add that the claims are also duplicative since the nine claims are identical filings against each of the Debtors. Finally, Sonnenschein Investors inform the Court that the claims should be disallowed because they were filed in bad faith. The members of the committee first filed the prepetition unofficial committee claim for $1,027,787 in fees and expenses on Nov. 21, 2007, the same day the Bayou Debtors filed a plan. Claim was Classified Under the Plan The proposed plan, Sonnenschein Investors relate, initially provided for allowance of the claim in class 2 of the plan, payable in full, ahead of investor claims. According to Sonnenschein Investors, the classification and treatment of the prepetition unofficial committee claim, together with the Debtors' silence on the application of the Government Fund and a role for postconfirmation committee, was part of the price for the official committee's consent to the latest proposed plan. In addition, Sonnenschein Investors say, the prepetition unofficial committee claim comprised about 99% of the aggregate value of the claims in class 2, and thus, as an allowed claim, the vote of this claim for the plan virtually ensured an accepting class. In sum, Sonnenschein Investors assert, the claim was part of a scheme to use the plan process to give one group of investors a substantially greater recovery. Kasowitz, Benson, Torres & Friedman LLP is counsel to the Unofficial Committee of Prepetition Creditors. The firm is also counsel to Silver Creek Long/Short Holdings LLC, the chair of both Ad Hoc Committee and the Official Committee of Unsecured Creditors. Facts Relevant to the Objection Sonnenschein Investors listed facts to support its objection. The members of the unofficial committee are Bermuda Fund/6800 Capital, DePauw University, LIBOR Partners/305 Partners, Phoenician Trading Partners LP, Regent University, Rembrandt & Partners/Southwind Partners, Silver Creek Long/Short Holdings LLC and John H. Williams. Sonnenschein Investors reveal that Bermuda invested $13,000,000 in Bayou Superfund and redeemed $8,000,000 between February 2003 and April 2005. Bermuda filed a proof of claim of $8,136,323, consisting of $5,000,000 capital contribution and $3,136,323 lost profits. Silver Creek filed a proof of claim of $58,988,090 based on investment of $43,000,000. LIBOR Partners filed for $2,091,184, consisting of $2,000,000 investment and profits reported on the last net asset valuation sent by the Debtors. Phoenician filed for $1,850,000, net of a $50,000 withdrawal. The Phoenician claim is based upon breach of contract, securities fraud and common law fraud, for which it is entitled to return of its investment plus damages. Regent University filed for $5,850,836 representing the sum on the latest net asset valuation sent by the Debtors. The claim say that the Regent University claim is based on wrongful interference with contract and with prospective economic advantage. Rembrandt filed for an amount of no less than $8,326,439, consisting of $6,250,000 net capital contribution and $2,076,439 lost profits. Rembrandt invested in Bayou fund $8,000,000 and redeemed $1,750,000 in January 2005. John Williams filed for $1,475,000 based solely on his investment in the Bayou funds. DePauw University filed for $10,485,315 for recession/damages arising from securities law violations. DePauw invested $3,250,000 in Bayou No Leverage and asserted claims for treble damages. Only five members of the unofficial onshore committee (Silver Creek, Bermuda, Rembrandt, Regent University, and John Williams) took credit for filing a complaint in the U.S. District Court and the motion for appointment of a receiver. Judge Hardin will convene a hearing on the objection at 9:45 a.m., on Feb. 19, 2008. Objections must be filed by Feb. 12, 2008, at 5:00 p.m. About Bayou Group Based in Chicago, Illinois, Bayou Group LLC operates and manages hedge funds. The company and its affiliates filed for chapter 11 protection on May 30, 2006 (Bankr. S.D.N.Y. Case No. 06-22306) in order to pursue recoveries for the benefit of defrauded investors. Bayou also filed lawsuits against former investors who allegedly received fictitious profits and an inequitably large return of their principal investments. Jeff J. Marwil at Jenner & Block was appointed on April 28, 2006 as the federal equity receiver. Elise Scherr Frejka, Esq., at Dechert LLP, represents the Debtors in their restructuring efforts. Joseph A. Gershman, Esq., and Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman, LLP, represents the Official Committee of Unsecured Creditors. Kasowitz, Benson, Torres & Friedman LLP is counsel to the Unofficial Committee of the Bayou Onshore Funds. Sonnenschein Nath & Rosenthal LLP represents the Sonnenschein Investors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. BAYOU GROUP: Various Parties Argue Over Distribution of Funds ------------------------------------------------------------- Bayou Group LLC, through counsel H. Jeffrey Schwartz, Esq., asks the Honorable Adlai S. Hardin, Jr., of the U.S. Bankruptcy Court for the Southern District of New York to allow the distribution of the Bayou Victims Restitution Fund to the investors victimized in the fraud cases styled, U.S. v. Marino; U.S. v. Israel; and U.S. v. Marquez. The three criminal cases are pending before the Hon. Colleen McMahon of the U.S. District Court in Manhattan. Mr. Schwartz tells Judge Hardin that the restitution fund, including the money that is presently seized from Bayou and being held by the government, is going to be held in escrow until the Bankruptcy Court has determined all avoidance actions or they have been settled. He asserts that no restitution can be paid to any victim until those entitled to restitution are determined. Hence, Mr. Schwartz informs Judge Hardin that he needs to know the outcome of the avoidance actions in the Bankruptcy Court and whether they are tried or settled. U.S. Attorney Garcia Wants Immediate Distribution On the other hand, Michael J. Garcia, Esq., U.S. district attorney, demands that Judge McMahon allow the immediate distribution of the funds to those owed whose claims aggregate about $309 million are not part of the civil cases, the Associated Press reports. Mr. Garcia relates that the reservation will be put up for those with disputed claims estimated at $85 million, AP says. Creditors' Committee Supports Mr. Garcia Meanwhile, the Official Committee of Unsecured Creditors favors Mr. Garcia's demands and states that undisputed claims should be satisfied ahead and claimants need not wait for the settlement of the disputed claims, AP relates. The Committee tells Judge McMahon through a letter Monday that investor-victims will suffer "needless additional financial hardship" if they are made to wait longer who have already waited for more than two years just to get their money back, AP reveals. Some Investors Disagree w/ Committee and Mr. Garcia Contrary to Mr. Garcia and the Committee's view, some 24 investors balk at the immediate distribution of the funds and side with Judge McMahon's recommendation, AP relates. These opposing investors were the ones who filed a case against Bayou and told the Bankruptcy Court that the Debtor fraudulently transferred funds. The investors, according to AP, want all litigations to be resolved first, including the fraud case they filed, in order to provide "equal access to the restitution fund." Judge McMahon Creates Restitution Fund In a letter to Judge Hardin, Mr. Schwartz states that the sentencing hearing for James G. Marquez was held on Jan. 22, 2008. Judge McMahon sentenced Marquez to 51 months of incarceration, two years of supervised release, and ordered Marquez to pay restitution in the amount of $6,259,650, the amount that Marquez and the United States agreed was the total investor injury attributable to Marquez, who withdrew from Bayou in the Summer of 2000. Mr. Schwartz adds that Judge McMahon outlined an order of the distribution of the Government Funds, including the restitution to be paid by Mr. Marquez. Judge McMahon had intended, in connection with the sentences of Messrs. Marquez, Samuel Israel III, and Daniel Marino, to authorize the creation of a fund to be known as the Bayou Victims Restitution Fund. She says, "It has to happen sometime in the next 90 days, because I have only 90 days to finalize Mr. Marquez's sentence of restitution. I would expect that within 30 days after that creation of the fund, the government would provide the Court with two lists. First a list of all the defendants in the avoidance actions that remain to be resolved. And second, a list of all other Bayou investors who lost money as a result of the fraud, including those avoidance defendants who have settled the claims against them. The persons on the latter list will automatically be entitled to participate in the Bayou Victims Restitution Fund on a programmed basis." "Persons on the former list will be permitted to participate only if they are required to contribute money back to the bankruptcy estate and are not found culpable of any fraud themselves by the Bankruptcy Court." According to Judge McMahon, the $6.2 million in restitution payable by Mr. Marquez will be paid to the Clerk of the United States District Court for distribution to the Bayou Victims Restitution Fund. Ex-CFO Marino Sentenced to 20 Years in Prison As reported in the Troubled Company Reporter yesterday, Judge McMahon has condemned former chief financial officer of Bayou Group LLC, Daniel Marino, to 20 years in prison for his role in conspiring to deceive investors out of more than $400 million, several papers disclose. The judge will announce "nine figures" penalty within 90 days. In September 2005, Mr. Marino and co-founder Samuel Israel III pleaded guilty to conspiracy, investment adviser fraud and other complaints stemming from false disclosure of the value of Bayou's funds, according Chad Bray of Dow Jones. Mr. Israel is awaiting sentencing. About Bayou Group Based in Chicago, Illinois, Bayou Group LLC operates and manages hedge funds. The company and its affiliates filed for chapter 11 protection on May 30, 2006 (Bankr. S.D.N.Y. Case No. 06-22306). H. Jeffrey Schwartz, Esq., Gary J. Mennitt, Esq., Stephen J. Gordon, Esq., Jonathan D. Perry, Esq., and Elise Scherr Frejka, Esq., at Dechert LLP, represents the Debtors in their restructuring efforts. Joseph A. Gershman, Esq., and Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. BEXAR COUNTY: Moody's Cuts Rating on $14.8MM Revenue Bonds to Ba2 ----------------------------------------------------------------- Moody's Investors Service downgraded the rating on the $14.8 million Bexar County Housing Finance Corporation's Multifamily Housing Revenue Bonds (Dymaxion & Marbach Park Apartments Project) Series 2000A to Ba2 from Baa3 and has downgraded the $1.5 million 2000C to B1 from Ba2. The downgrades were based upon declines in debt service coverage and occupancy. The outlook on the bonds is negative due to weak forecasts for occupancy and rent growth. Legal security: The bonds are limited obligations payable solely from the revenues, receipts and security pledged in the Trust Indenture. Recent Developments Debt service coverage declined in fiscal 2007 to 1.16x maximum annual debt service (MADS) for seniors and 1.02x MADS subordinate debt. This, and a weighted-average occupancy of 89.7% (Jan. 2008) are the primary drivers of the downgrade. The low weighted average occupancy is due to the 85.9% occupancy at Marbach Park, while Dymaxion is performing well with occupancy of 95.8%. Rolling 12-month interim financial statement indicates debt service coverage of 1.19x MADS for senior debt and 1.05x MADS for subordinate debt. Even though interim statements show some stabilization, Moody's views these cautiously as interim statements are frequently stronger than audited statements and the remaining portion of the fiscal year could potentially be weaker than recent months. Torto Wheaton Research forecasts indicate occupancy in the Northwest San Antonio submarket, where Dymaxion is located, will decline to 94% in 2008 from 95% in 2007. Rent growth is forecasted to be 2.3% for the same period. The TWR forecast for the South San Antonio submarket, where Marbach Park is located, is weaker with occupancy declining to 90.5% in 2008 from 91.5% in 2007. Rent growth in South San Antonio is forecasted to be particularly weak in 2008, with a -.90% decline projected. Moody's believes limited rent growth will negatively impact debt service coverage levels. What Could Cause the rating to go Up A sustained improvement in debt service coverage and a solid rent growth forecast. What Could Cause the rating to go Down A decline in debt service coverage and sustained low occupancy. Outlook The outlook on the bonds is negative from due to forecasted declines in occupancy and weak rent growth in the submarkets where the properties are located. BIOPURE CORP: Ernst & Young Expresses Going Concern Doubt --------------------------------------------------------- Ernst & Young raised substantial doubt about Biopure Corporation's ability to continue as a going concern after it audited the company's financial statements for the year ended Oct. 31, 2007. The auditing firm pointed to the company's recurring losses from operations and lack of sufficient funds to sustain its operations through the end of fiscal 2008 The company posted a net loss of $36,282,000 on total revenues of $2,556,000 for the year ended Oct. 31, 2007, as compared with a net loss of $26,454,000 on total revenues of $1,715,000 in the prior year. The key drivers of the losses were cost of revenues, research and development and other expenses consisting of sales and marketing and general and administrative. Cost of revenues includes costs of both Oxyglobin and Hemopure, which totaled $11,654,000 for fiscal 2007. Total costs for fiscal year ended Oct. 31, 2007, was $39,480,000. At Oct. 31, 2007, the company's balance sheet showed $14,250,000 in total assets, $4,586,000 in total liabilities and $9,664,000 stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2798 About Biopure Corporation Headquartered in Cambridge, Massachussetts, Biopure Corporation (NasdaqCM: BPUR) -- http://www.biopure.com/-- develops, manufactures and markets pharmaceuticals, called oxygen therapeutics, that are intravenously administered to deliver oxygen to the body's tissues. The company is developing Hemopure for a potential indication in cardiovascular ischemia, in addition to supporting the U.S. Navy's government-funded efforts to develop a potential out-of-hospital trauma indication. Biopure's veterinary product Oxyglobin(R) is indicated for the treatment of anemia in dogs. BNG HOLDINGS: Case Summary & Three Largest Unsecured Creditors -------------------------------------------------------------- Debtor: BNG Holdings, LLC 1584 Parkside Avenue Trenton, NJ 08638 Bankruptcy Case No.: 08-11615 Type of Business: The Debtor offers payment services. See: http://bngholdingsinc.com/ Chapter 11 Petition Date: January 30, 2008 Court: District of New Jersey (Trenton) Judge: Michael B. Kaplan Debtors' Counsel: Joseph Markowitz, Esq. Markowitz, Gravelle & Schwimmer 3131 Princeton Pike Lawrenceville, NJ 08648 Tel: (609) 896-2660 http://www.mgs-law.com/ Total Assets: $1,400,000 Total Debts: $1,156,055 Consolidated Debtors' List of Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Donald Cox personal loan $50,000 865 Lower Ferry Road Suite 120 Ewing, NJ 08638 Internal Revenue Service federal taxes unknown District Director Insolvency Function P.O. Box 724 Springfield, NJ 07081-0724 New Jersey Division of state taxes unknown Taxation Bankruptcy Section P.O. Box 269 Trenton, NJ 08695 BUFFETS HOLDINGS: Section 341(a) Meeting Scheduled for February 3 ----------------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, will convene a meeting of the creditors of Buffets Holdings, Inc., and its debtor subsidiaries at 10:00 a.m., on Feb. 28, 2008, at Room 2112, J. Caleb Boggs Federal Building, 2nd Floor, in Wilmington, Delaware. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtors' bankruptcy cases. Attendance by the Debtors' creditors at the meeting is welcome, but not required. The Sec. 341(a) meeting offers the creditors a one-time opportunity to examine the Debtors' representative under oath about the Debtors' financial affairs and operations that would be of interest to the general body of creditors. 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: U.S. Trustee Appoints 7-Member Creditors Panel ---------------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, appoints seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Buffet Holdings, Inc., and its debtor subsidiaries. The Creditors Committee members are: (1) Commissary Operations, Inc. Attn: Lloyd Baldridge 2629 Eugenia Avenue Nashville, TN 37211 Tel No.: 615-231-4401 Fax No.: 615-231-4450 (2) HSBC Bank USA, National Association Attn: Sandra E. Horwitz 10 East 40th Street New York, NY 10016 Tel No.: 212-525-1358 Fax No.: 212-525-1300 (3) Kimco Realty Corporation Attn: Raymond Edwards 3333 New Hyde Park Rd. New Hyde Park, NY 11042 Tel No.: 516-869-2586 Fax No.: 516-336-5686 (4) Levine Leichtman Capital Partners Deep Value Fund L.P. Attn: Jason Schauer 335 North Maple Drive, Suite 130 Beverly Hills, CA 90210 Tel No.: 310-275-5335 Fax No.: 310-275-1305 (5) The Coca-Cola Company Attn: John Lewis, Jr. One Coca Cola Plaza Atlanta, GA 30311 Tel No.: 404-676-4016 Fax No.: 404-598-4016 (6) Van Eerden Food Service Attn: Daniel Van Eerden 650 Ionia Avenue, S.W., P.O. Box 3110 Grand Rapids, MI 49501 Tel No.: 616-475-0900 Fax No.: 616-774-3973 (7) Western Asset Management Company Attn: Christopher N. Jacobs 385 E. Colorado Blvd. Pasadena, CA 91101 Tel No.: 626-844-9622 Fax No.: 626-817-4149 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. 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. 5; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). CALPINE CORP: Emerges from Chapter 11 in New York ------------------------------------------------- The Sixth Amended Joint Plan of Reorganization of Calpine Corporation and its debtor-affiliates is deemed effective as of Jan. 31, 2008, David R. Seligman, Esq., at Kirkland & Ellis, LLP, in New York, relates. Mr. Seligman says the Debtors have satisfied or waived each of the conditions precedent to consummation of the Plan. The company officially concluded its Chapter 11 reorganization after meeting all statutory requirements of the company's Sixth Amended Joint Plan of Reorganization, including successfully closing its $7.3 billion exit financing facility that includes a one-year, $300 million bridge facility that is expected to be paid by the end of the first quarter. Calpine's Plan was confirmed by the United States Bankruptcy Court for the Southern District of New York in an order entered on Dec. 19, 2007. Calpine's stock is expected to begin "regular way" trading on the New York Stock Exchange on or about Feb. 5, 2008 under the ticker symbol CPN. "This is a wonderful day for all of us at the new Calpine," Robert P. May, Calpine's Chief Executive Officer, said. "We are very proud of what we have been able to accomplish over the past two years. Calpine is now a stronger, more competitive power company poised for growth in the energy industry. We are well positioned for future success, with a healthy balance sheet and a $7.3 billion exit financing facility. On behalf of the Board and management team, we would like to thank the nearly 2,200 Calpine employees for their hard work, perseverance and dedication over the past two years. We'd also like to thank our customers, business partners and the communities we serve for their support throughout this process." Gregory L. Doody, Calpine's General Counsel, who has also served as the company's Chief Restructuring Officer, said, "Calpine's restructuring was truly remarkable. In just over two years Calpine dramatically improved its capital structure, reducing approximately $7.2 billion in debt while generating a significant recovery for our creditors as a whole. In addition, we enhanced and streamlined our core power generation business. Together, these financial and operating improvements have laid a strong foundation for the future success of Calpine, its stakeholders, customers and employees." The Court approved Calpine's new nine-member Board of Directors, on Nov. 20, 2007. The Directors are: -- William J. Patterson, Chairman of the Board, -- Frank Cassidy, Member, Compensation Committee, -- Kenneth Derr, Chair, Compensation Committee, -- Robert C. Hinckley, Member, Audit Committee and Member, Nominating and Governance Committee, -- Robert P. May, Chief Executive Officer, -- David Merritt, Chair, Audit Committee, -- W. Benjamin Moreland, Member, Audit Committee, -- Denise M. O'Leary, Chair, Nominating and Governance Committee, and -- J. Stuart Ryan, Member, Compensation Committee. Under the Plan, Calpine intends to issue a total of 485 million shares of reorganized Calpine common stock to holders of allowed claims. The reorganized Calpine common stock will trade on the New York Stock Exchange under the ticker symbol CPN. Calpine anticipates that it will make initial distributions under the Plan to holders of allowed claims and interests on or before Feb. 10, 2008. In addition to the 485 million shares, Calpine will reserve 15 million shares for distribution pursuant to the terms of Calpine's Management and Director Equity Incentive Programs, which will be implemented pursuant to the terms of the Plan. In its first distribution, Calpine currently anticipates distributing on account of allowed unsecured claims approximately 423 million shares of reorganized Calpine common stock, each with an imputed value of $17.36 based upon a $8.7 billion reorganized equity value and the face value of the exit financing. Calpine currently estimates in connection with its first distribution that: (1) general unsecured creditors will receive approximately 84.8% of their allowed claims for principal and pre- petition interest; (2) holders of the 7.625% Senior Notes Due 2006, 7.75% Senior Notes Due 2009, 7.875% Senior Notes Due 2008, 8.75% Senior Notes Due 2007, and 10.5% Senior Notes Due 2006 will receive approximately 100.0% of their allowed claims for principal and pre-petition interest; and (3) holders of the 7.75% Contingent Convertible Notes Due 2015 will receive approximately 42.0% of their allowed claims for principal and prepetition interest. In connection with its first distribution, Calpine also intends to set aside 62 million shares of reorganized Calpine common stock on account of disputed unsecured claims. As claims are resolved, Calpine will make further distributions of reorganized Calpine common stock on a periodic basis in accordance with the terms of the Plan. Based upon the $18.95 billion total enterprise value of Calpine set forth in the Plan and Calpine's current litigation- risk assessment of allowed claims, Calpine currently estimates that: (1) general unsecured creditors will ultimately recover approximately 99.9% of their allowed claims for principal and prepetition interest; (2) holders of the Senior Notes will ultimately recover approximately 100.0% of their allowed claims for principal and prepetition interest; and (3) holders of the Subordinated Notes will ultimately recover approximately 75.0% of their allowed claims for principal and pre-petition interest. In accordance with the Plan, postpetition interest on the Senior Notes and certain related claims will be held in escrow pending the resolution of the Intercreditor Subordination Dispute between the holders of the Senior Notes and holders of the Subordinated Notes described in detail in the Plan. The recoveries for the holders of the Senior Notes and holders of the Subordinated Notes under the Plan depend, in part, on the resolution of the Intercreditor Subordination Dispute. Calpine's estimates regarding the ultimate recoveries under the Plan for the holders of the Subordinated Notes set forth above assume that the holders of the Senior Notes will prevail in the Intercreditor Subordination Dispute, although Calpine currently has not yet taken any position with respect to such dispute. As part of the Plan, Calpine's old common stock will be cancelled and holders of the old common stock will receive warrants to purchase new Calpine common stock. These warrants will be for an aggregate of approximately 48.5 million shares of new Calpine common stock and will have an exercise price of $23.88 per share. Cashless exercises will not be permitted. The warrants will expire on August 25, 2008. The warrants will be distributed to the holders of the old Calpine common stock pro rata based on the number of shares of old Calpine common stock held at the time of cancellation. Fractional warrants will not be issued. Calpine Board of Directors 1) Frank Cassidy. Prior to his retirement in 2007, Mr. Cassidy was employed at Public Service Enterprise Group, Inc., an energy and energy services company headquartered in New Jersey, since 1969. From 1999-2007, Mr. Cassidy served as President and Chief Operating Officer of PSEG Power LLC, the wholesale energy subsidiary of PSEG, which includes PSEG Nuclear, PSEG Fossil and PSEG Energy Resources & Trade. From 1996-1999, Mr. Cassidy was President and Chief Executive Officer of PSEG Energy Technologies, Inc. Prior to such time, Mr. Cassidy held various positions of increasing responsibility at the Public Service Electric and Gas Company. Mr. Cassidy earned an M.B.A. from Rutgers University in 1974 and has an electrical engineering degree from the New Jersey Institute of Technology. He serves on the Compensation Committee. 2) Kenneth Derr. Mr. Derr formerly served as Calpine's Chairman of the Board and has been an independent Calpine director since May 2001. In addition, Mr. Derr served as Acting CEO prior to the tenure of current CEO Robert P. May. He retired as the Chairman and Chief Executive Officer of Chevron Corporation in 1999, a position that he held since 1989, after a 39-year career with the company. Mr. Derr obtained a Master of Business Administration degree from Cornell University in 1960 and a Bachelor of Mechanical Engineering from Cornell University in 1959. In addition, he serves as a director of Citigroup, Inc. and Halliburton Co. Mr. Derr is chair of the Compensation Committee. 3) Robert C. Hinckley. Mr. Hinckley previously served as Vice President, Strategic Plans and Programs, General Counsel and Secretary, and Chief Operating Officer for Xilinx, Inc., a supplier of programmable logic solutions in San Jose, CA. From 1988 to 1990, Mr. Hinckley was Senior Vice President and Chief Financial Officer of Spectra Physics, Inc., a supplier of laser products. Mr. Hinckley serves on the boards of directors of several private companies and holds a B.S. in engineering from the U.S. Naval Academy and a J.D. from Tulane University Law School. He serves on the Audit Committee and the Nominating and Governance Committee. 4) Robert P. May. Mr. May joined Calpine as CEO in December 2005. Over the past 30 years Mr. May has served in various senior management and executive positions, including non-executive Chairman of the Board of HealthSouth from July 2004 to October 2005, and as interim President and CEO of Charter Communications, January 2005 to August 2005. From March 2003 to May 2004, he served as HealthSouth's interim CEO, and as interim President of its outpatient and diagnostic division, from August 2003 to January 2004. At Cablevision Systems Corp., where Mr. May was COO and a Director from 1996 to 1998, he was part of an executive team that helped transition the company through new operating strategies and the use of new technologies. He also serves as a member of Charter Communications' Board of Directors and Deutsche Bank Americas' Advisory Board. 5) David Merritt. Since October 2007 Mr. Merritt has served as Senior Vice President and Chief Financial Officer at iCRETE LLC, a technology company in the building materials industry. He served as Managing Director of Salem Partners, LLC, an investment- banking firm, from October 2003 until September 2007. He has been on the boards of Charter Communications and Outdoor Channel Holdings, Inc. since 2003. He also served as a director of Laser- Pacific Media Corporation from January 2001 through October 2003, and served as chairman of its audit committee. He was with KPMG LLP for 24 years, serving in a variety of capacities during his years with the firm, including 14 years as a partner. Mr. Merritt earned a Bachelor of Science degree in business and accounting from California State University - Northridge. Mr. Merritt is chair of the Audit Committee. 6) W. Benjamin Moreland. Mr. Moreland has served as Executive Vice President and Chief Financial Officer of Crown Castle International Corporation, which provides broadcast, data and wireless communications infrastructure services in Australia, Puerto Rico, and the U.S. and has served in other senior executive roles at Crown Castle since starting there in 1999. From 1984 to 1999, Mr. Moreland was employed by Chase Manhattan Bank, serving in various roles of increasing responsibility in corporate finance and real estate investment banking. Mr. Moreland earned an M.B.A. from the University of Houston in 1988 and has a finance degree from the University of Texas, Austin. Mr. Moreland was appointed to the board of directors of Crown Castle International Corporation in 2006. He serves on the Audit Committee. 7) Denise M. O'Leary. Since 1996, Ms. O'Leary has been a private venture capital investor in Woodside, California. From 1983 to 1996, Ms. O'Leary was an associate, then general partner, at Menlo Ventures, a venture capital firm that provides long-term capital and management services primarily to development-stage companies in such industries as Internet infrastructure, semiconductors, software, financial services, and computer hardware. Prior to 1983, Ms. O'Leary held various positions of increasing responsibility in manufacturing engineering and management positions at Spectra Physics, Inc. Ms. O'Leary earned an M.B.A. from Harvard Business School in 1983 and has an industrial engineering degree from Stanford University. She is also a director at Medtronic, Inc. and US Airways Group, Inc. She serves as chair of the Nominating and Governance Committee. 8) William J. Patterson. Mr. Patterson is a managing director of SPO Partners & Co., a private investment partnership that he joined in 1989. SPO may initially hold more than 10% of the Company's common stock and may be considered an affiliate of the Company. From 1985 to 1987, Mr. Patterson was a financial analyst at Goldman, Sachs & Co., where he was involved in structuring and arranging financing for leveraged buyouts and in privately placing debt and equity securities. He also served as a director of Plum Creek Timber Company, the largest private timberland owner in the United States, from December 1992 to May 2003. Mr. Patterson earned his M.B.A. in 1989 from the Stanford Graduate School of Business and received his A.B. from Harvard College in 1984. He is Board Chair of the California Academy of Sciences, Chair of the Investment Committee of the Marin Community Foundation, Vice Chair of the Stanford Business School Trust and a former trustee and board president of the Bay Area Discovery Museum. Mr. Patterson is also a Henry Crown Fellow of the Aspen Institute. In addition to serving as Chairman of the Board, he is a member of the Nominating and Governance Committee. 9) J. Stuart Ryan. Mr. Ryan has been the owner and President of Rydout LLC, an investment firm focused on the energy sector, since February 2003. He also has been a venture partner with SPO Partners & Co., a private investment partnership, since 2003. SPO may initially hold more than 10% of the Company's common stock and may be considered an affiliate of the Company. From 1986 through 2003, Mr. Ryan held various management positions with The AES Corporation, a global power company, including Executive Vice President from February 2000 and Chief Operating Officer from February 2002. He also served as Chairman of the Board of Directors of Indianapolis Power & Light, and as a director of AES Gener, a publicly listed company in Chile. Mr. Ryan is a graduate of the Harvard Business School and has a Chemical Engineering degree from Lehigh University. He currently serves on Lehigh's Global Council and is Chairman of its Asa Packer Society and is also a director of O&M Solutions, a company based in Mauritius that provides technical services to companies developing, constructing and operating power plants in Asia, the Middle East and Africa. He serves on the Compensation Committee. About Calpine Corporation Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., Kirkland & Ellis LLP, represents the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Nov. 31, 2007, the Debtors disclosed total assets of $18,212,000,000, total liabilities not subject to compromise of $11,024,000,000, total liabilities subject to compromise of $11,859,000,000 and stockholders' deficit of $4,675,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. (Calpine Bankruptcy News, Issue No. 80; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Davenport Files Ch. 11 Plan of Reorganization -------------------------------------------------------------- The Diocese of Davenport and the Official Committee of Unsecured Creditors filed a Joint Consensual Plan of Reorganization on Jan. 31, 2008. The purpose of the Plan is to enable the Diocese to pay fair and just compensation to all survivors of abuse and to allow the Diocese to continue its ministry and service to the people of the Diocese. The Diocese negotiated a $37 million settlement with the Creditors Committee on Nov. 28, 2007. Of the $37 million settlement, $19.5 million is committed from Travelers Insurance Company and $17.5 million from the Diocese of Davenport. Of the $17.5 million from the Diocese, $3.9 million will come from the transfer of the deed to the St. Vincent Center property as valued by the Creditors Committee. The Diocese's share of the remaining $13.6 million is to be paid in cash. To date, $5.9 million of the $13.6 million has been committed from the St. Vincent Home Corporation and four parishes which will be named after they have had time to inform their parishioners. The four parishes had the most serious claims against them. The Diocese is considering the various options, including borrowing money, to raise the balance of the funds needed to meet the settlement. Details of the $37 million settlement will be included in the Joint Consensual Plan of Reorganization. The Plan must be approved by the Honorable Lee M. Jackwig, Chief Judge of the United States Bankruptcy Court, Southern District of Iowa, to be effective. Judge Jackwig has scheduled a hearing on March 5th. If approved, the creditors will then vote on the Plan. Following the negotiations in November, Bishop Amos said, "The settlement provides the best opportunity for healing and for the just and fair compensation of those who have suffered sexual abuse by clergy in our Diocese. The settlement also provides the best way to continue the Church's mission in the Diocese of Davenport. While this settlement will not end the suffering by some victims of abuse, I pray that the healing process for them might begin." About Diocese of Davenport The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on Oct. 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. CCI OF WEST PALM: Selling 19 TGI Friday's Restaurants on Feb. 26 ---------------------------------------------------------------- CCI of West Palm Beach Inc. is auctioning its 19 restaurants in New York and Florida on Feb. 26, 2008, Bill Rochelle of Bloomberg News reports. The Debtor is accepting bids until Feb. 21, 2008. The Debtor, Mr. Rochelle relates, will provide a 2% breakup fee to whoever comes to an agreement with the Debtor before the auction. Based in West Palm Beach, Florida, CCI of West Palm, Inc. is a T.G.I Friday's franchisee. The company and its debtor-affiliates filed for Chapter 11 protection on Aug. 19, 2007 (Bank. S.D. Fla. Case No. 07-16604). CONSOL ENERGY: Earnings Drop to $6.8 Mil. in Qtr. Ended Dec. 31 --------------------------------------------------------------- CONSOL Energy Inc. reported net income of $6.8 million for its fourth quarter ended Dec. 31, 2007, compared with net income of $115.3 million for the same period a year ago. The Buchanan Mine roof fall that occurred on July 9, 2007, forced the mine to idle production and adversely impacted net income during the period just ended by approximately $31 million, net of an initial insurance recovery payment of $25 million, including additional expenses incurred in managing and monitoring the underground mine atmosphere since the mine was idled, well as reduced income from lost sales. The company reported earnings of $267.8 million for the calendar year ended Dec. 31, 2007, compared with $408.9 million for the calendar year 2006. Net cash from operating activities was $88 million for the quarter just ended, compared with $225.3 million for the December 2006 quarter. "The idling of the Buchanan Mine for the entire quarter significantly capped fourth quarter earnings," J. Brett Harvey, president and chief executive officer, said. "However, now that we have reentered the mine, I expect this event to move quickly to conclusion with the result that financial performance should improve substantially." Mr. Harvey noted that in addition to the impact from the idling of Buchanan, higher DD&A charges related to the purchase of AMVEST, and several other non-operational items combined to reduce net income period-to-period. He re-iterated that the company expects to make additional recoveries under the company's insurance coverage, subject to deductibles and waiting periods, which includes property damage, cost recovery and business interruption provisions. "Despite the loss of Buchanan for the entire quarter, coal operations still managed to report a period-to-period increase in average realized prices of 5.1%, a modest increase in total costs per ton of 1.6%, an increase in operating margins of 20.5% and an increase in financial margins of 33.8%," added Mr. Harvey. "More importantly, coal fundamentals remain unusually good," Mr. Harvey noted. "Global demand for coal is strong and sets a positive tone in both our export markets and the steam market here in the United States." He said steam coal supplies were in close balance with demand, while high quality metallurgical coal was in tight supply. Net cash from operating activities was $88 million for the quarter just ended, compared with $225.3 million for the December 2006 quarter, a decrease of approximately 60.9%. The decline in net cash from operating activities reflects lower net income and changes in working capital from the same period a year ago. Total costs increased 5.9%, due to approximately $32.7 million of expenses incurred associated with the Buchanan Mine outage well as $12.7 million higher depreciation, depletion and amortization, of which $9.8 million is attributable to the additional assets received from the AMVEST acquisition that closed in July 2007. As of Dec. 31, 2007, CONSOL Energy had $247.5 million of short- term debt and had $503.4 million in total liquidity, which is comprised of $9.6 million of cash, and $493.8 million available to be borrowed under its $1 billion bank facility. As of Dec. 31, 2007, CNX Gas Corporation had no short-term debt and had $217.1 million in total liquidity, which is comprised of $32 million of cash and $185.1 million available to be borrowed under its $200 million bank facility. At Dec. 31, 2007, the company's balance sheet showed total assets $6.21 billion, total liabilities and total stockholders' equity of $1.21 billion. Share Repurchase Update No shares were repurchased during the quarter just ended. From inception, the company purchased 5,602,600 shares at an average price of $34.98 per share. The current authorization period for the repurchase of shares expired on Dec. 31, 2007. CONSOL Energy's board of directors has not authorized a further repurchase of shares. About CONSOL Energy Inc. Headquartered in Atlanta, Georgia, CONSOL Energy Inc. (NYSE: CNX) -- http://www.consolenergy.com/-- is a multi-energy producer of coal, gas and electricity. CONSOL produces both high-Btu coal and gas, which collectively fuels two-thirds of all U.S. power generation, from reserves located mainly east of the Mississippi River. CONSOL Energy is a fuel supplier to the electric power industry in the northeast quadrant of the United States. In addition, CONSOL Energy has expanded the use of its vast property holdings by brokering various industrial and retail development projects and overseeing timber sale and forestry management activities both in the U.S. and abroad. The company also maintains the private research and development facilities devoted to coal and energy utilization and production. * * * CONSOL Energy Inc. carries Moody's Investor Services "Ba2" long term corporate family rating and probability of default rating, which were placed in March 2006 with a stable outlook. The ratings still hold to date. DELTA PETROLEUM: Stockholders' to Meet Feb. 19 on Tracinda's Offer ------------------------------------------------------------------ Delta Petroleum Corporation has scheduled a special meeting of its stockholders to be held at its offices in Denver, Colorado at 10:00 a.m. Mountain Time on Feb. 19, 2008. The purpose of the meeting will be to vote on the transaction with Tracinda Corporation. Proxy materials were mailed to stockholders on Jan. 29, 2008. The company also amended its agreement with Tracinda to allow for a two- week extension to Tracinda's 30-day due diligence period. The due diligence period will conclude on Feb. 11, 2008. The extension of the due diligence period is not expected to delay the closing of the transaction. About Tracinda Corporation Tracinda is a privately held Nevada corporation wholly owned by Kirk Kerkorian. Tracinda's principal business is buying, selling and holding selected equity securities. Mr. Kerkorian has served as chief executive officer, president and sole director and stockholder of Tracinda for more than the past five years. About Delta Petroleum Corporation Headquartered in Denver, Colorado, Delta Petroleum Corporation (NASDAQ: DPTR) -- http://www.deltapetro.com/-- is an oil and gas exploration and development company. The company's core areas of operations are the Gulf Coast and Rocky Mountain Regions, which comprise the majority of its proved reserves, production and long- term growth prospects. * * * In September 2006, Moody's Investor Services placed Delta Petroleum Corp.'s probability of default rating at 'Caa1'. In March 2005, Standard & Poor's assigned a 'B-' rating on the company's long term foreign and local issuer credit. Both ratings still hold to date. DENISON COMMUNICATIONS: Voluntary Chapter 11 Case Summary --------------------------------------------------------- Debtor: Denison Communications Inc. P.O. Box 40371 Baton Rouge, LA 70835 Bankruptcy Case No.: 08-10121 Chapter 11 Petition Date: January 29, 2008 Court: Middle District of Louisiana (Baton Rouge) Debtors' Counsel: Pamela G. Magee, Esq. 7922 Wrenwood Blvd., Suite B Baton Rouge, LA 70809 Tel: (225) 925-8770 Fax: (225) 924-2469 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a List of its 20 Largest Unsecured Creditors. FEDDERS CORP: Bidding Procedure OK'd for Sale of Unit's Assets -------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware approved Fedders Corporation and its debtor-affiliates' proposed bidding procedures for the sale of substantially all assets of Fedders Addison Company Inc. Fedders Addison is an affiliate of the Debtors acquired on November 2004 for $7.8 million. The Debtors tell the Court that RG Adding LLC, a newly formed affiliate of Roberts, LLC, agreed to buy Fedders Addion's assets for $14,400,000 in cash plus the assumed liabilities. Sales Protocol Norman L. Pernick, Esq., at Saul Ewing LLP, says the bid deadline have already expired yesterday Jan. 31, 2008, however, it may be extended by the Debtors at its sole discretion. To participate in the public auction, interested parties must submit a $1,000,000 cash deposit, of which $750,000 is potentially forfeitable. An auction will be held on Feb. 6, 2008, at 10:00 a.m., at the office of Saul Ewing LLP at 222 Delaware Avenue, Suite 1200. In addition, the Debtors say that they agreed to pay $250,000 as break-up fee and $100,000 in reimbursement for out-of-pocket expenses. A sale hearing has been set on Feb. 7, 2008, at 10:00 a.m., to consider approval of the Debtors' request. The hearing will be held at 824 Market Street, 6th floor in Wilmington, Delaware. Objection to approval must be filed on or before Jan. 31, 2008. Channin Capital Partners LLC and Business Development Asia LLC will assist the Debtors in marketing Fedders Addison's assets. About Fedders Addison Headquartered in Orlando, Florida, Fedders Addison Company Inc. manufactures semi-custom and commercial HVAC products, rooftop packaged units, split systems, water source heat pumps and wall- mount units. About Fedders Corporation Based in Liberty Corner, New Jersey, Fedders Corporation -- http://www.fedders.com/-- manufactures and markets air treatment products, including air conditioners, air cleaners, dehumidifiers, and humidifiers. The company has production facilities in the United States in Illinois, North Carolina, New Mexico, and Texas and international production facilities in the Philippines, China and India. The company filed for Chapter 11 protection on Aug. 22, 2007, (Bankr. D. Del. Case No. 07-11182). Its debtor-affiliates filed for separate Chapter 11 cases. Norman L. Pernick, Esq., Irving E. Walker, Esq., and Adam H. Isenberg, Esq., of Saul, Ewing, Remick & Saul LLP represents the Debtors in their restructuring efforts. The Debtors have selected Logan & Company Inc. as claims and noticing agent. The Official Committee of Unsecured Creditors is represented by Brown Rudnick Berlack Israels LLP. When the Debtors filed for protection from its creditors, it listed total assets of $186,300,000 and total debts of $322,000,000. As reported in the Troubled Company Reporter on Jan. 21, 2008, the Court extended the Debtors' exclusive period to file a Chapter 11 plan until Feb. 29, 2008. FIRST UNION: Fitch Keeps 'B' and 'CCC' Ratings on Class B Certs. ---------------------------------------------------------------- Fitch Rasings affirmed these First Union Home Equity Loan mortgage pass-through certificates: Series 1997-1 -- Class B at 'B'. Series 1997-3 -- Class B at 'CCC/DR2'. The collateral on the aforementioned transactions consists of mixed-term, fixed-rate and balloon mortgages extended to subprime borrowers. The servicer for all transactions is First Union National Bank of North Carolina, which is currently not rated by Fitch. The affirmations are due to satisfactory relationships of credit enhancement to future expected losses, and affect approximately $671,000 in outstanding certificates. The pool factors (current collateral balance as a percentage of initial collateral balance) and seasoning for 1997-1 and 1997-3 are 3% and 4%, and 127 months and 120 months, respectively. The cumulative losses are 4.65% and 5.61%, respectively. FORD MOTOR: Nears Deal w/ Tata Motors on Jaguar & Land Rover Sale ----------------------------------------------------------------- Ford Motor Co. is closing in a deal with Tata Motors Ltd. for the sale of the American automaker's luxury brands, Jaguar and Land Rover, The Economic Times reports citing an unnamed source "who has been briefed on the negotiations." The Times' source expects an announcement of an agreement as early as next week to as late as March. The agreement may also include a engine-supply deal. The parties are negotiating an agreement for Ford to keep supplying engines and other technology to Jaguar and Land Rover, the news agency cites its anonymous source as saying. The news agency expects the sale agreement will be for the sale of the entire stake in the two luxury brands. Ford CFO Don Leclair told the agency that "the company does not plan to keep a stake in the storied British automakers." As reported in the Troubled Company Reporter on Jan. 30, 2008, Ford anticipates a return of its Jaguar brand to profitability once it is sold, together with the Land Rover brand, to preferred bidder Tata Motors Ltd., insisting that its management is at ease at Tata Motor's operational capabilities. Lewis Booth, executive vice president for Ford of Europe and Premier Automotive Group (Chairman - Jaguar, Land Rover, Volvo and Ford of Europe) stated that Ford is committed to focused detailed talks with Tata Motors on the potential sale of its Jaguar and Land Rover brands. He related that while no final decision has been made, Ford will proceed with further substantive discussions with Tata Motors over the coming weeks with a view to securing an agreement that is in the best interests of all parties concerned. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the company maintains a presence in Sweden, and the United Kingdom. The company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. GLOBAL BEVERAGE: To Repurchase 60.5MM Shares from XStream Beverage ------------------------------------------------------------------ Global Beverage Solutions has entered into an agreement to repurchase 60.5 million shares of its common stock from XStream Beverage Network Inc. The shares were originally issued to XStream Beverage as part of Global Beverage's acquisition of Beverage Network of Maryland Inc., a "New Age" beverage distribution company, in February 2007. In connection with the repurchase transaction, Global Beverage issued a convertible note in the principal amount of $700,000 to XStream Beverage in consideration for the repurchase of the shares. The note bears interest at the prime rate plus 2% and matures on Oct. 31, 2008. If Global Beverage defaults under the note, the holder of the note has the option to convert the outstanding principal and any accrued interest, or any part thereof, under the note into shares of Global Beverage's common stock. A default under the note will be deemed to occur if, among other things, Global Beverage fails to make a $500,000 payment under a related note on or before May 1, 2008. "We are pleased to have entered into this agreement, which will reduce the number of our shares outstanding by 40%," said Jerry Pearring, president and chief executive officer of Global Beverage. "We believe the repurchase will allow us to optimize our capital structure in an effort to enhance shareholder value." About Global Beverage Based in Plantation, Florida, GlobaL Beverage Solutions Inc. (OTC BB: GBVS.OB) -- http://www.globalbeveragesolutions.com/-- is a business development company organized pursuant to applicable provisions of the Investment Company Act of 1940. The company primarily focuses on manufacturing, distribution and sales of unique beverages globally. As of Sept. 30, 2007, secured notes in the aggregate principal amount of $1,326,000 are in default as the interest due on Nov. 1, 2006, Feb. 1, 2007, May 1, 2007 and Aug. 1, 2007, was not paid. The default rate of interest of 12% is in effect for these secured notes. Going Concern Doubt Turner, Stone & Company LLP in Dallas, expressed substantial doubt about Global Beverage Solutions Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm reported that the company has generated limited revenues and has incurred losses totaling $16,963,728 for the period from Aug. 26, 2002, through Dec. 31, 2006. The company currently estimates it will require a total of approximately $1,800,000 to meet its operating cash flow requirements and its currently committed follow-on investments for the balance of 2007. As of March 31, 2007, the company had an accumulated deficit totaling $17,319,587. GLOBAL MOTORSPORT: Case Summary & 35 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Global Motorsport Group, Inc. aka Global Motorsport Parts, Inc. aka Chrome Specialties, Inc. 16100 Jacqueline Court Morgan Hill, CA 95037 Bankruptcy Case No.: 08-10192 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Custom Chrome Europe, Ltd. 08-10193 Custom Chrome Far East, Ltd. 08-10194 Custom Chrome Manufacturing, Inc. 08-10195 dba Santee Industries Type of Business: The Debtors are dealers of European model sports cars. See http://www.gmgracing.com/home.shtml Chapter 11 Petition Date: January 31, 2008 Court: District of Delaware (Delaware) Judge: Kevin J. Carey Debtors' Counsel: Laura Davis Jones, Esq. Pachulski Stang Ziehl & Jones LLP 919 North Market Street 17th Floor Wilmington, DE 19899-8705 Tel: (302) 652-4100 Fax: (302) 652-4400 Estimated Assets: $50 Million to $100 Million Estimated Debts: $100 Million to $500 Million Debtors' Consolidated List of its 35 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Susan Dodd Promissory Note $3,300,000 2507 Abbey Road Cape Girardeau, MO 63701 Attn: Dean White, Esq. Limbaugh Russell et al. 407 North Kings Highway 4th Floor Cape Girardeau, MO 63701-4356 Tel: (573) 335-3316 Fax: (573) 335-0621 PPF Industrial 4300 Diplomacy Lease Balance $1,238,957 Drive, L.P. c/o J.R. Peterson, Esq. 2828 North Narwood Street Suite 1800 Dallas, TX 75201-6966 Tel: (214) 939-4900 Fax: (214) 939-4949 The Hog Farm, Inc. Litigation Dispute $1,000,935 Attn: Richard Doyle 1134 Feesburg Poetown Road Hammersville, OH 45130 Tel: (937) 379-4647 -- and -- Richard L. Goettke, Esq. 213 North Broadway Blanchester, OH 45107 Tel: (937) 783-2454 Fax: (937) 783-2454 Harness Trade $770,488 6 Floor No. 649-3/6/7/8 Jong Jeng Road Hsin Chuang City Taipei Hsien Tel: 011-886229082492 Fax: 011-886229081994 Perot Systems Trade $746,537 7489 Collections Center Drive Chicago, IL 60693 Tel: (972) 577-0000 Warn Industries &