/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080201.mbx 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 Trade $414,168 22330 Network Place Chicago, IL 06731223 Tel: (503) 722-1200 Fax: (503) 722-1411 David G. Sadler Settlement Balance $312,500 751 Bradford Farms Lane Northeast Grand Rapids, MI 49525 Mark A. Harmon, Esq. Hodgson Russ LLP 1540 Broadway New York, NY 10036 Tel: (212) 751-4300 Fax: (212) 751-0928 Intravex Trade $293,496 118 North Clinton Street Suite 207 Chicago, IL 60661 Tel: (312) 676-4808 Fax: (312) 275-7325 Belt Drives Ltd. Trade $272,104 1959 North Main Street Orange, CA 92865-4101 Tel: (714) 685-3333 Fax: (714) 685-3339 Federal-Mogul Operations Trade $234,324 Italy s.r.l. Corso Inghilterra 2 12084 Mondovi (Cuneo) Italia Tel: (39) 0174 560 511 Fax: (39) 0174 552 248 Merrill Communications LLC DataSite Services $204,481 Agreement Balance Greenball Corporation Trade $191,528 S&S Cycle, Inc. Trade $189,394 Deloitte & Touche LLP Professional Services $177,910 Cisco Systems Capital Corp. Trade $150,966 Daeil Industrial Co., Ltd. Trade $148,922 Goodridge (USA) Inc. Trade $145,558 Zodiac Enterprises Ltd. Trade $128,285 DS Manufacturing Trade $122,750 McLeod Accessories Pty Limited Trade $122,570 Seal Methods Inc. Trade $119,207 Arlen Ness Inc. Trade $116,733 Borstein Enterprises Settlement Balance $116,662 D & D Performance Enterprise Trade $106,947 Scorpion Exhausts Trade $106,937 BP Lubricants USA, Inc. Trade $101,620 Ray Boone Trade $95,000 O'Neal Azonic Trade $91,442 Motul USA Inc. Trade $89,180 Crane Cams, Inc. Trade $88,867 Tulare County Tax Collector Trade $85,252 Bel-Ray Company, Inc. Trade $85,207 NGK Spark Plugs USA Inc. Trade $80,587 Dunlop Trade $77,403 Sage Payment Solutions Inc. SGA $75,576 GO FIG: Section 341(a) Meeting Scheduled for February 11 -------------------------------------------------------- The U.S. Trustee for Region 13 will convene a meeting of Go fig., Inc. and its debtor-affiliates' creditors on Feb. 11, 2008, at 1:00 p.m., at the Thomas F. Eagleton U.S. Courthouse, 111 South 10th Street, 22nd Floor, Multi-purpose Room, in St. Louis, Missouri. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Go Fig. Based in Phoenix, Arizona, Go fig., Inc. -- http://www.fig.com/-- provides medically-supervised body-shaping services, operating and managing 15 centers across the U.S. It employs more than 500 people. The company and 11 of its affiliates filed for Chapter 11 protection on Jan. 7, 2008 (Bankr. E.D. Mo. Lead Case No. 08-40116). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $1 million to $100 million. GO FIG: Wants to Hire Capes Sokol as General Bankruptcy Counsel --------------------------------------------------------------- Go fig., Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Eastern District of Missouri to employ Capes, Sokol, Goodman & Sarachan, P.C. as their bankruptcy counsel. Capes Sokol will: a) assist, advise and represent the Debtors regarding the administration of their cases; b) assist, advise and represent the Debtors in any investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors, the operation and profitability of the Debtors' business and the desirability of the continuation of such business, the disposition of any assets of the Debtors, and any other matters relevant to this case or the formulation of a Plan of Reorganization; c) assist, advise and represent the Debtors in the formulation and drafting of a Plan or Reorganization, and in the collection and filing with the Court of any acceptance of a Plan of Reorganization; and d) assist, advise and represent the Debtors in the performance of all of her duties and powers under the Code and the Bankruptcy Rules and in the performance of such other services as are in the interest of the Debtors and their estates. Spencer P. Desai, Esq., a shareholder at Capes Sokol, tells the Court that the firm's paralegals, associates, and partners will bill the Debtors $100 to $260 per hour for services rendered. Mr. Desai assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Court. Mr. Desai can be contacted at: Spencer P. Desai, Esq. Capes, Sokol, Goodman & Sarachan, P.C. Pierre Laclede Center 7701 Forsyth Boulevard, 12th Floor St. Louis (Clayton), MO 63105-1818 Tel: (314) 721-7701 Fax: (314) 721-0554 http://www.lawstlouis.com/ About Go Fig. Based in Phoenix, Arizona, Go fig., Inc. -- http://www.fig.com/-- provides medically-supervised body-shaping services, operating and managing 15 centers across the U.S. It employs more than 500 people. The company and 11 of its affiliates filed for Chapter 11 protection on Jan. 7, 2008 (Bankr. E.D. Mo. Lead Case No. 08-40116). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $1 million to $100 million. GO FIG: U.S. Trustee Appoints Seven-Member Creditors Committee -------------------------------------------------------------- Nancy J. Gargula, the U.S. Trustee for Region 13, appoints seven members to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Go fig., Inc. and its debtor-affiliates. The Creditors Committee members are: (a) Jason Pharmaceuticals, Inc. (Medifast) Attn: Rick Logsdail 11445 Cronhill Drive Owings Mills, MD 21117 Tel: (410) 504-8180 (b) Integrated Media Solutions Attn: Robert Ingram 650 Fifth Avenue New York, NY 10019 Tel: (212) 373-9500 (c) Specialty Pharmacy of St. Louis Attn: Lee Ori 623 North New Ballas Road St. Louis, MO 63141 Tel: (314) 991-5200 (d) Media Marketing, Inc. / DBA thembcgroup Attn: Craig Barnes 326 North Euclid Avenue St. Louis, MO 63108 Tel: (314) 361-6717 (e) Rataj Krueger Architects, Inc. Attn: Don Rataj 10777 Sunset Office Drive, Suite 300 St. Louis, MO 63127 Tel: (314) 822-4007 (f) Keystone Partnership, Inc. Attn: Ryan J. Strong 12312 Olive Boulevard, Suite 550 St. Louis, MO 63141 Tel: (314) 878-7200 (g) Fig. Pacific, LLC Attn: Brian Stern 1956 Port Cardiff Newport Beach, CA 92660 Tel: (714) 656-4260 Pursuant to Section 1103 of the Bankruptcy Code, the Creditors Committee may: -- consult with the Debtors concerning the administration of the bankruptcy case; -- investigate the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' business and the desirability of the continuance of the business, and any other matter relevant to the case or to the formulation of a plan of reorganization for the Debtors; -- participate in the formulation of a plan, advise its constituents regarding the Committee's determinations as to any plan formulated, and collect and file with the Court acceptances or rejections of the plan; -- request the appointment of a trustee or examiner; and -- perform other services as are in the interest of its constituents. The Creditors Committee may retain counsel, accountants, or other agents, to represent or perform services for the group. About Go Fig. Based in Phoenix, Arizona, Go fig., Inc. -- http://www.fig.com/-- provides medically-supervised body-shaping services, operating and managing 15 centers across the U.S. It employs more than 500 people. The company and 11 of its affiliates filed for Chapter 11 protection on Jan. 7, 2008 (Bankr. E.D. Mo. Lead Case No. 08-40116). When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $1 million to $100 million. HAWAIIAN AIRLINES: Gets Extra $3.9MM from Mesa Air for Legal Fees ----------------------------------------------------------------- The Hon. Robert Faris of the U.S. Bankruptcy Court for the District of Hawaii directed Mesa Air Group Inc. to pay Hawaiian Airlines Inc. $3.9 million for costs of litigation and attorneys' fees the carrier incurred in their dispute over the misuse of confidential information to gain an unfair competitive advantage, according to various papers. As reported in the Troubled Company Reporter on Nov. 2, 2007, the Court ruled in favor of Hawaiian Airlines in its lawsuit against Mesa Air Group (Case No. 03-00817), awarding Hawaiian $80 million in damages and ordering Mesa to pay Hawaiian's costs of litigation and reasonable attorneys' fees. In a pre-trial hearing, the court made findings that: (1) Mesa kept confidential information it was supposed to destroy or return to Hawaiian in accordance with a signed confidentiality agreement; (2) Mesa misused the information it kept; and (3) the information Mesa kept was a substantial factor in the company's decision to enter the Hawaii market. The $80 million in damages was awarded to compensate Hawaiian for damages it suffered through October 2007. The court did not award damages for any injury Hawaiian may sustain in the future as a result of Mesa's misconduct. About Hawaiian Airlines Hawaiian Airlines, Inc. -- http://www.hawaiianair.com/-- a subsidiary of Hawaiian Holdings Inc. (Amex: HA), provides passenger air service between the U.S. mainland and Hawaii. The company also offers service to Australia, American Samoa and Tahiti. The company filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the District of Hawaii (Case No. 03-00827) on March 21, 2003. Joshua Gotbaum served as the chapter 11 trustee for Hawaiian Airlines, Inc. Mr. Gotbaum was represented by Tom E. Roesser, Esq., and Katherine G. Leonard, Esq., at Carlsmith Ball LLP and Bruce Bennett, Esq., Sidney P. Levinson, Esq., Joshua D. Morse, Esq., and John L. Jones, II, Esq., at Hennigan, Bennett & Dorman LLP. The Bankruptcy Court confirmed the Chapter 11 Trustee's Plan of Reorganization on March 10, 2005. The Plan took effect on June 2, 2005. HAWAIIAN TELCOM: Moody's Upgrades Rating on $150 Million Sr. Notes ------------------------------------------------------------------ Moody's Investors Service modified the ratings of Hawaiian Telcom's Senior Unsecured Bonds, $150 million Floating Rate Senior Notes due in 2013 and $200 million 9.75% Senior Notes due in 2013, to B3 from Caa1, following the company's announcement that it has prepaid $371 million principal amount of its Tranche C Term Loan and $50 million of Revolving Loans. The modification of the above mentioned debt instruments reflects the change in the company's capital structure and is consistent with Moody's Loss Given Default Methodology. As a part of the rating actions mentioned above, these actions have been taken: -- $150 mm Floating Rate Senior Notes due 2013: Upgraded to B3, LGD5-75% -- $200 mm 9.75% Senior Notes due 2013: Upgraded to B3, LGD5-75% Also, as a part of the rating actions mentioned above, this is a list of the debts in which the LGD rating has changed slightly: -- $90 mm Senior Secured Revolving Credit Facility due 2012 -- Affirmed at Ba3, Changed to LGD2-23% from LGD3-31% -- $860 mm Senior Secured Tranche C Term Loan due 2014 -- Affirmed at Ba3, Changed to LGD2-23% from LGD3-31% -- $150 mm 12.5% Senior Subordinated Notes due 2015 -- Affirmed at Caa1, Changed to LGD6-93% from LGD6-94% Hawaiian Telcom Communications, Inc., is an incumbent telecommunications provider servicing approximately 573K switched access lines as of the end of 3Q'07. The company offers a wide range of services, including local exchange, long distance, network access, wireless (through an MVNO agreement with Sprint- Nextel) and internet services. The company is headquartered in Honolulu, Hawaii. HERCULES INC: Debt Reduction Efforts Cue Moody's Ba2 Rating Review ------------------------------------------------------------------ Moody's Investors Service placed the Ba2 corporate family rating and other debt ratings Hercules Incorporated on review for possible upgrade. The reviews reflect Hercules successful efforts at debt reduction in past years and most recently in 2007. Hercules reduced balance sheet debt by roughly $200 million in 2007 (to about $795 million) and that this reduction, along with strong cash flows, has caused credit metrics to improve to levels that are strong relative to the Ba2 rating, Moody' assigned a positive outlook to Hercules ratings in June of 2007 in anticipation of Hercules' positive performance. At that time Moody's stated that provided that capital expenditures remain moderate, there are no large acquisitions and prospective dividend actions/share repurchases are prudently sized, the company should be able to generate retained cash flow to adjusted total debt above 20%, free cash flow to adjusted total debt of over 10%, and a fixed charge coverage ratio (EBITDA to interest) of over 4.5X times. If these metrics were realized Moody's indicated it could reassess the appropriateness of the Ba2 ratings after the end of 2007. The review also reflects Moody's expectation of further modest debt reduction in 2008 and 2009, after which Moody's expects absolute debt levels to stabilize. The review, which is expected to be completed by the end of March of 2008, will focus on several issues. Moody's will seek to better understand management's ongoing financial philosophy as it relates to: 1) acquisitions; 2) potential changes in the secured structure of Hercules' debt along with incremental debt reduction; and 3) uses of excess cash flow and the future plans of returning such cash to shareholders. In addition, Moody's will seek to understand the sustainability of Hercules' strong operating performance in the face of a potentially slowing global economy and review Hercules asbestos exposures to insure that the positive trends are sustainable. On Review for Possible Upgrade: Issuer: Hercules Incorporated -- Corporate family rating: Ba2 -- probability of default rating: Ba2 -- Gtd Sr Sec Revolving Credit Facility due 04/2009, Baa3, LGD2, 18% -- Gtd Sr Sec Term Loan B due 10/2010, Baa3, LGD2, 18% -- 6.60% Gtd Sr Sec Putable Notes due 2027, Baa3, LGD2, 18% -- 6.75% Gtd Sr Sub Notes due 2029, Ba3, LGD4, 61% -- 8.00% Conv Sub Debentures due 2010, B1, LGD5, 89% -- 6.50% Jr Sub Deferrable Int Debentures due 2029, B1, LGD5, 89% -- Multiple Seniority Shelf -- Outlook, Changed To Rating Under Review From Positive Hercules Inc., headquartered in Wilmington, Delaware, is a global manufacturer of specialty chemicals for the pulp and paper industry and water-based systems (coatings, construction materials, energy and regulated industries). Revenues for the full year ending Dec. 31, 2007 were about $2.1 billion. HILLEN REAL: Voluntary Chapter 11 Case Summary ---------------------------------------------- Lead Debtor: Hillen Real Estate Associates, L.P. 100 Beecher Avenue Cheltenham, PA 19012 Bankruptcy Case No.: 08-10701 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- HH Fluorescent Parts Inc. 08-10707 Chapter 11 Petition Date: January 29, 2008 Court: Eastern District of Pennsylvania (Philadelphia) Debtors' Counsel: Paul J. Winterhalter, Esq. Law Offices of Paul J Winterhalter, P.C. 1717 Arch Street, Suite 4110 Philadelphia, PA 19103 Tel: (215) 564-4119 Fax: (215) 564-5597 http://www.pjw-law.com/ Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtors did not file a list of its 20 Largest Unsecured Creditors. HILLTOP SPORTS: Voluntary Chapter 11 Case Summary ------------------------------------------------- Lead Debtor: Hilltop Sports Club, LLC 8771 Elk Grove Boulevard Elkl Grove, CA 95624 Bankruptcy Case No.: 08-20950 Type of Business: The Debtor operates health club/gym. Chapter 11 Petition Date: January 29, 2008 Court: Eastern District of California (Sacramento) Judge: Robert S. Bardwil Debtors' Counsel: Paul R. Bartleson, Esq. Law Offices of Paul R. Bartleson 1007 7th Street, Suite 214 Sacramento, CA 95814 Tel: (916) 447-6640 Fax: (916) 447-7840 Estimated Assets: $100,000 to $500,000 Estimated Debts: $1 million to $10 million The Debtor did not file a list of its 20 Largest Unsecured Creditors. IAC/INTERACTIVE CORP: Spin-Off Plans Cue S&P to Review Ratings -------------------------------------------------------------- Standard & Poor's Rating Services said its ratings on IAC/InterActiveCorp, including the 'BB' corporate credit rating, remain on CreditWatch with negative implications, where they were initially placed on Nov. 5, 2007, following IAC's announcement that it plans to divide itself into five publicly traded companies. "IAC is engaged in a dispute with Liberty Media LLC that began when IAC CEO Barry Diller recommended to the IAC board of directors that all shareholders of businesses to be spun off receive low-voting stock, with IAC retaining its dual class stock structure," explained Standard & Poor's credit analyst Andy Liu. Such a scenario would reduce Liberty Media's (BB+/Negative/--) voting power to 29.9% (proportionate to the size of its equity stake) from 61.7%. Liberty Media is the sole owner of class B stock, which gives 10 votes per share. Subsequently, Liberty Media filed a complaint in Delaware Chancery Court seeking the removal of Mr. Diller and six other directors on IAC's board and suggesting its own slate of directors to replace them. The directors Liberty Media would like to remove include IAC Vice Chairman Victor Kaufman and fashion designer Diane von Furstenberg, who is Mr. Diller's wife and who was an important business advisor to QVC when Mr. Diller was its CEO. If Liberty Media prevails, it would control IAC and could change its financial policy and strategy. These events could distract IAC management from tackling cyclical and business execution challenges that several IAC units face. Ticketmaster is looking to bolster its artist management business when its Live Nation contract expires at the end of 2008. Home Shopping Network is in the midst of a turnaround, and LendingTree is contending with the difficult real estate financing environment in the U.S. In resolving the CreditWatch, Standard & Poor's will meet with management, evaluate the company's new financial policy, and assess the new capital structure and the outcome of the litigation. IAP WORLDWIDE: Moody's Junks Ratings; Revises Outlook to Negative ----------------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating and other instrument ratings of IAP Worldwide Services, Inc. The rating outlook has been changed to negative. This concludes the review for possible downgrade initiated on Oct. 23, 2007. Moody's took these rating actions: - $75 mm 1st lien revolver de 2010, lowered to Caa2 (LGD3, 35%) from B3 (LGD3, 35%) - $413 mm 1st lien term loan due 2012, lowered to Caa2 (LGD3, 35%) from B3 (LGD3, 35%) - $120 mm second lien term loan, lowered to Ca (LGD5, 85%) from Caa3 (LGD5, 84%) - Corporate Family Rating, lowered to Caa3 from Caa1 - Probability of Default Rating, lowered to Caa3 from Caa1 The ratings outlook is negative. The downgrade of IAP's Corporate Family Rating to Caa3 and outlook to negative primarily reflect the company's failure to negotiate an amendment with its lenders for the default of its interest coverage and leverage covenants (as of June 30, 2007). The downgrade also reflects the continued deterioration in the company's credit statistics and lack of access to the revolver. Bank negotiations have been ongoing since IAP defaulted on June 30, 2007, but the company has not reached an agreement yet with its lenders and remains unable to access its revolver. The company's EBIT coverage of interest expense remains weak at approximately 0.6 times while adjusted (Moody's standard adjustments) debt to EBITDA has ballooned to over 9.0 times. IAP had previously defaulted on its covenants and obtained amendments during the second half of 2006. Moody's notes that IAP continues to maintain a strong contract backlog of approximately $1.2 billion. IAP Worldwide Services, Inc., headquartered in Cape Canaveral, Florida, is a leading provider of facilities management, contingency support, and technical services to U.S. military and government agencies. IAP's revenue for the twelve months ended Sept. 30, 2007 amounted to approximately $943 million. ICEFLOE TECHNOLOGIES: Files an Assignment in Bankruptcy Under BIA ----------------------------------------------------------------- icefloe Technologies Inc. has filed an assignment in bankruptcy under the Bankruptcy and Insolvency Act. The company is unable to meet its ongoing obligations, and specifically was unable to make a Jan. 24, 2008 interest payment due to its secured lenders. The secured lenders have exercised their right to of enforcement and icefloe was served with a Notice of intention to enforce security pursuant to s.244 of the Bankruptcy and Insolvency Act. Icefloe, with the consent and agreement of the secured lenders, has appointed BDO Dunwoody to act as Trustee in Bankruptcy. "The company has been aggressively pursuing all recapitalization options, including the sale of the company, as announced in April, 2007," J. Robert Furse, icefloe's Chairman of the Board, commented. "Regrettably we have been unsuccessful in finding a solution to the company's ongoing working capital requirements." "Our Company's success is dependent on our ability to develop and commercialize proprietary heat exchange technologies for beverages," Wayne Newson icefloe's President and CEO added. "Over the last 7 years the company has acquired or developed a number of new processes and technologies, and has invested substantially in Research and Development and patent filings. Our ability to commercialize these new technologies has been below expectations and, as a result, there are insufficient earnings to cover current and long term obligations." Founded in March 2001, icefloe Technologies Inc. (TSX VENTURE: ICY) is a Canadian-based company dedicated to the development and commercialization of its proprietary chilling technology which brings flash chilling capability in a portable form and enables the beverage industry to serve ice cold draft beer without excessive foam loss, anytime and anywhere. Since April 2001, icefloe has focused its efforts on securing patents for its platform technologies, while developing, field-testing, manufacturing and marketing commercial products using its unique technologies. Its wholly owned subsidiary, Draught Guys Inc., provides installation, sales and service for both traditional draft systems and icefloe's proprietary products in the Ontario market. JOHNSON RUBBER: Judge Baxter OKs McGuireWoods as Panel's Counsel ---------------------------------------------------------------- The Honorable Randolph Baxter of the United States Bankruptcy Court for the Northern District of Ohio gave the Official Committee of Unsecured Creditors of Johnson Rubber Company Inc. and its debtor-affiliates authority to retain McGuireWoods LLP as its counsel, nunc pro tunc Dec. 20, 2007. McGuireWoods is expected to: a) advise the Committee with respect to its powers and duties under section 1103 of the Bankruptcy Code; b) take all necessary action to preserve, protect and maximize the value of the Debtors' estates for the benefit of the Debtors' unsecured creditors, including but not limited to, investigating the acts, conduct, assets, liabilities, and financial condition of the Debtors, the operation of the Debtors' businesses and the desirability of the continuance of such businesses, and any other matter relevant to these cases or to the formulation of a plan; c) prepare on behalf of the Committee motions, applications, answers, orders, reports and papers that may be necessary to the Committee's interests in these chapter 11 cases; d) participate in the formulation of a plan as may be in the bests interests of general unsecured creditors of the Debtors' estates; e) represent the Committee's interests with respect to the Debtors' efforts to obtain postpetition secured financing; f) advise the Committee in connection with any potential sale of assets; g) appear before this Court, any appellate courts, and protect the interests of the Committee and the value of the Debtors estates before such courts; h) consult with the Debtors' counsel on behalf of the Committee regarding tax, intellectual property, labor and employment, real estate, corporate, litigation matters, and general business operational issues; and i) perform all other necessary legal services and provide all other necessary legal advice to the Committee in connection with these chapter 11 cases. The firm's attorneys will bill between $325 to $500 per hour, while paralegals charges at $175 per hour for this engagement. Mark E. Freedlander, Esq., a partner of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Freedlander can be reached at: Mark E. Freedlander, Esq. McGuireWoods LLP 625 Liberty Avenue, 23rd floor Pittsburg, PA 15222-3142 Tel: (412) 667-6000 Fax: (412) 667-6050 Headquatered in Middlefield, Ohio, Johnson Rubber Company Inc. -- http://www.johnsonrubber.com/-- designs, develops and manufactures polymer components. The company and its parent, JR Holding Corp., filed for Chapter 11 protection on December 11, 2007 (Bankr. N.D. Ohio, Lead Case No. 07-19391). William I Kohn, Esq., at Benesch Friedlander Coplan & Aronoff LLP, represents the Debtors in their restructuring efforts. The Debtors selected Donlin Recano as claims, noticing and balloting agent. The United States Trustee for Region 9 appointed four creditors to serve on an Official Committee of Unsecured Creditors in this cases. When the Debtors filed for protection against their creditors, they listed total assets at $15,346,607 and total debts at $19,869,931. KAUFMAN COUNTY: Taps Eric A. Liepins PC as Bankruptcy Counsel ------------------------------------------------------------- Kaufman County Land Trust asks the U.S. Bankruptcy Court for the Eastern District of Texas for permission to employ Eric A. Liepins PC as its counsel. Kaufman County tells the Court that it desires to hire Eric A. Liepins PC as its counsel in order to propose a Plan of Reorganization and effectively move forward in its bankruptcy proceeding. Eric A. Lipins, Esq., the sole shareholder with the law firm of Eric A. Liepins PC, tells the Court that the firm's professionals bill: Professional Hourly Rate ----------- ----------- Eric A. Liepins $200 Paralegals $30 - $50 Legal Assistants $30 - $50 The firm has been paid a retainer of $3,500 plus the filing fee of $1,039. Mr. Liepins tells the Court that his firm has represented the Trustee and Beneficiary in another bankruptcy proceeding called The Forney Land Trust, currently pending in the U.S. Bankruptcy Court for the Northern District of Texas Dallas Division (Case No. 07-34380-HDH-111). Mr. Liepins assures the Court that his firm does not represent any interest adverse to the Debtor or its estate, and that Eric A. Liepins PC is a "disinterested" person as that term is defined in section 101(14) of the Bankruptcy Code. Mr. Liepins can be contacted at: Eric A. Liepins, Esq. Eric A. Liepins P.C. 12770 Coit Road, Suite 1100 Dallas, Texas 75251 Tel: (972) 991-5591 Fax: (972) 991-5788 About Kaufman County Based in Gunter, Texas, Kaufman County Land Trust owns and manages real estate. The company filed for Chapter 11 protection on Dec. 31, 2007 (Bank. E.D. Tex. Case No. 07-43081). When the Debtor filed for protection from its creditors, it listed total assets of $30,000,000 and total debts of $11,906,985. LIBERTY TAX LP: Dec. 31 Balance Sheet Upside-Down by $28.4 Million ------------------------------------------------------------------ Liberty Tax Credit Plus LP's consolidated balance sheet at Dec. 15, 2007, showed $43.2 million in total assets, $72.2 million in total liabilities, and $562,906 in minority interests, resulting in a $28.4 million total partners' deficit. The partnership reported a net loss of $1.3 million for the third quarter ended Dec. 15, 2007, versus net income of $1.4 million in the comparable period in 2006. Rental income decreased approximately 10.0% to $2.2 million for the three months ended Dec. 15, 2007, as compared to rental income of $2.5 million in the corresponding period in 2006, primarily due to an increase in vacancies due to the cancellation of a Section 8 contract at one Local Partnership and a decrease in occupancy rates at two other Local Partnerships. Other income increased approximately $23,000 for the three months ended Dec. 15, 2007, as compared to the corresponding period in 2006, primarily due to an increase in interest income earned on higher cash balances due to sales at the Partnership level, increases in early lease termination fees and bad debt recovery at a second Local Partnership partially offset by decreases in interest income and tenants' charges at a third Local Partnership. Results for the first quarter ended Dec. 15, 2006, includes income from discontinued operations of $2.7 million, which includes a gain on sale of properties of $2.3 million. Full-text copies of the partnership's consolidated financial statements for the quarter ended Dec. 15, 2007, are available for free at http://researcharchives.com/t/s?279d About Liberty Tax Headquartered in New York, Liberty Tax Credit Plus L.P. (Other OTC: XXLTC.PK) is a limited partnership that invests in other limited partnerships, each of which owns one or more leveraged low- and moderate-income multifamily residential complexes that are eligible for the low-income housing tax credit enacted in the Tax Reform Act of 1986, and to a lesser extent, in local partnerships owning properties that are eligible for the historic rehabilitation tax credit. The Partnership's capital was originally invested in thirty-one Local Partnerships. As of Dec. 15, 2007, the properties and the related assets and liabilities of fifteen Local Partnerships and the limited partnership interest in eight Local Partnerships were sold. In addition, as of Dec. 15, 2007, the partnership has entered into an agreement to sell its limited partnership interest in one Local Partnership and two Local Partnerships have entered into agreements to sell their property and the related assets and liabilities. LIONEL LLC: Court Okays Pay Scheme for CEO Jerry Calabrese ---------------------------------------------------------- The Honorable Burton R. Lifland of the U.S. Bankruptcy Court for the Southern District of New York approved an annual pay of $1 million to Lionel LLC's CEO Jerry Calabrese, the Associated Press reports. Judge Lifland also granted Mark Erickson, marketing executive vice-president, an annual pay of $465,000, says the AP. In documents submitted to the Court, the Debtor said that it needs Erickson and Calabrese to help navigate its way out of Chapter 11 bankruptcy, through confirmation of its plan of reorganization, the AP relates. In addition, the two executives will receive a percentage of the Debtor's sale, if the sale exceeds $60 million. The company will also grant stock options to Calabrese and Erickson when the plan is confirmed, the AP says, citing court documents. About Lionel LLC Chesterfield, Michigan-based Lionel LLC --http://www.lionel.com/- - markets model train products, including steam and die engines, rolling stock, operating and non-operating accessories, track, transformers and electronic control devices. The Company and its affiliate, Liontech Company, filed for chapter 11 protection on Nov. 15, 2004 (Bankr. S.D.N.Y. Case Nos. 04-17324 and 04-17324). Adam C. Harris, Esq., Abbey Walsh, Esq., and Adam L. Hirsch, Esq., at Schulte Roth & Zabel LLP; Dale Cendali, Esq., at O'Melveny & Myers LLP; and Ronald L. Rose, Esq., at Dykema Gossett PLLC, represent the Debtors. Houlihan Lokey Howard & Zukin Capital, L.P. and Ernst & Young LLP are the Debtors' financial advisors. Kurtzman Carson Consultants LLC acts as the Debtors' noticing and claims agent. As of May 31, 2007, the Debtor disclosed total assets of $39,161,000 and total debts of $62,667,000. Alan D. Halperin, Esq., and Robert D. Raicht, Esq., at Halperin Battaglia Raicht, LLP, represent the Official Committee of Unsecured Creditors. FTI Consulting, Inc., is the Committee's financial advisor. Alec P. Ostrow, Esq. in New York, represents Mike's Train House, Inc. The Court gave the Debtor until March 31, 2008 to file its Chapter 11 plan of reorganization. MAJESCO ENTERTAINMENT: Posts $961,000 in 4th Quarter Ended Oct. 31 ------------------------------------------------------------------ Majesco Entertainment Company Inc. reported a net loss of $961,000 for the fourth quarter ended Oct. 31, 2007, compared to a net loss of $2.9 million in the corresponding period in 2006. Non-GAAP net loss was $1.2 million for the fourth quarter of 2007, compared to a non-GAAP net loss of $3.1 million for the fourth quarter of 2006, a reduction of 61.0%. Net revenue was $11.9 million in the fourth quarter of 2007, compared to $21.5 million in 2006. The decrease was primarily attributable to a strong performance of JAWS(TM) Unleashed and the launch of Cooking Mama 1 for Nintendo's DS, introduced in the third and fourth quarters of 2006, respectively, and a very strong fourth quarter value pricing program in 2006. Gross margin was 31.2%, compared to 19.8%, reflecting the higher margins attributable to Wii games and Cooking Mama (DS and Wii). The GAAP operating loss was $1.5 million, compared to 2006 operating loss of $1.9 million. Non-GAAP 2007 operating loss was $1.2 million, compared to a non-GAAP operating loss of $2.1 million in 2006. The company defines non-GAAP operating loss and non-GAAP net loss as operating loss and net loss adjusted for vendor and litigation settlements, and the change in fair value of warrants issued in connection with the recent equity financing. Results for Full Year 2007 Net revenue for the year ended Oct. 31, 2007, was $51.0 million. This compares to $66.7 million in 2006. The decrease was primarily attributable to the company's shift in strategy away from publishing higher priced premium games in 2007, and a very strong fourth quarter value pricing program last year. Gross margin was 33.9%, compared to 29.7% in 2006, reflecting the higher margins attributable to Wii games and Cooking Mama (DS and Wii). Including the $2.8 million charge in connection with the expected settlement of a class action litigation, the GAAP operating loss was $3.8 million. This compares to 2006 GAAP operating loss of $3.0 million. Non-GAAP 2007 operating loss was $1.3 million, compared to a non-GAAP operating loss of $7.7 million in 2006, an improvement of $6.4 million, or 84.0%. GAAP net loss was $4.8 million, compared to a GAAP net loss of $5.4 million in 2006. Non-GAAP net loss was $2.8 million, compared to a non-GAAP net loss of $10.1 million. Interest expense and financing costs decreased 35.0% in 2007 to $1.6 million from $2.4 million in 2006, as the company benefited from the additional capital and negotiating better terms with its financing sources. Management's Comments Jesse Sutton, chief executive officer of Majesco Entertainment, said, "In 2007 we continued to execute on our strategy. We made substantial operating and financial progress, laying the groundwork for continued growth and improved profitability in the year ahead. We successfully implemented our mass-market casual game strategy, as we published 19 games in 2007 including 13 for the DS and our first two Wii games. We streamlined our operations and reduced expenses. "For the full year, financing and factoring costs were down 35.0%, facilitated by our additional capital. We improved our gross margins by 420 basis points to 33.9%, reduced our non-GAAP operating loss for the year by $6.5 million, or 84.0%, and made substantial progress in moving toward profitability. With this improved efficiency and the additional capital from our recent equity financing, we are well-positioned for growth in 2008 and 2009." "We enter 2008 with positive momentum and remain committed to executing on our business plan while maintaining a disciplined financial approach," continued Sutton. "Our relationships with the nation's major retailers are solid and we are on track in expanding our product line. Further, the launch of our new studio will allow us to gradually and prudently build a library of valuable intellectual property. "Our balance sheet is much improved, reflecting our 2007 financing, as well as our efforts to reduce liabilities and lower our overall cost of capital. With our focused strategy and improved financial position, we are well positioned to capitalize on the continued growth of the casual gaming market." At Oct. 31, 2007, the company had cash of $7.3 million. Balance Sheet At Oct. 31, 2007, the company's consolidated financial statements showed $16.3 million in total assets, $13.7 million in total liabilities, and $2.6 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Oct. 31, 2007, are available for free at http://researcharchives.com/t/s?279a About Majesco Entertainment Headquartered in Edison, N.J., Majesco Entertainment Co. (NasdaqCM: COOL) -- http://www.majescoentertainment.com/-- provides video games for the mass market. The company is focused on developing and publishing a wide range of casual and family oriented video games on leading console and portable systems. Product highlights include Nancy Drew(TM0, Cooking Mama(TM) and Zoo Hospital(TM) for the Nintendo DS(TM) and Cooking Mama: Cook Off for the Wii(TM) console. * * * This concludes the Troubled Company Reporter's coverage of Majesco Entertainment Co. until facts and circumstances, if any, emerge that demonstrate financial or operational strain or difficulty at a level sufficient to warrant renewed coverage. MAYERLING LLC: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Mayerling LLC 2018 N. Catalina Street Los Angeles, CA 90027 Bankruptcy Case No.: 08-10520 Chapter 11 Petition Date: January 29, 2008 Court: Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtors' Counsel: Arshak Bartoumian, Esq. Bedrosian & Bartouman 450 N. Brand Boulevard, #600 Glendale, CA 91203 Tel: (818) 291-6234 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. MARKET PLACE: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Market Place at Chestnut Ridge, L.L.C. P.O. Box 934 Wrentham, MA 02093 Tel: (508) 541-3445 Bankruptcy Case No.: 08-10646 Chapter 11 Petition Date: January 30, 2008 Court: District of Massachusetts (Boston) Judge: Robert Somma Debtor's Counsel: AnDre' D. Summers, Esq. P.O. Box 306 9 East Central Street Franklin, MA 02038 Tel: (508) 528-8444 Total Assets: $3,185,000 Total Debts: $2,117,413 The Debtor did not file a list of its 20 largest unsecured creditors. MCLAURIN & BRAD: Case Summary & Four Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: McLaurin & Brad Affordable Custom Homes, Inc. 11948 Autumnwood Lane Fort Washington, MD 20744 Tel: (240) 882-1454 Bankruptcy Case No.: 08-11206 Chapter 11 Petition Date: January 29, 2008 Court: District of Maryland (Greenbelt) Judge: Thomas J. Catliota Debtors' Counsel: William C. Johnson, Jr., Esq. 1229 K. Street NW Washington, DC 20005 Tel: (202) 483-0808 Fax: (202) 483-0909 Total Assets: $1,175,000 Total Debts: $734,000 Consolidated Debtors' List of four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Express materials $8,000 P.O. Box 1270 Newark, NJ 07101-127- Home Depot materials $2,800 Processing Center Des Moines, IA 50364 Capital One Bank materials $2,700 Capital One materials $1,700 MILAGRO ENERGY: Defaults on $7.5 Million Convertible Debentures --------------------------------------------------------------- Milagro Energy Inc. provided an update on its current financial condition and its continuing efforts to secure financing to fund operations, service debt and refinance its debts. Default on $7.5 Million Debenture As Milagro previously disclosed, its bridge credit facility with Brookfield Bridge Lending Fund Inc. matured on Dec. 31, 2007, and Milagro did not have the funds available to pay the principal when due. As a result of the default in Milagro's obligations under the bridge credit facility, Milagro is now in default under its outstanding $7,500,000 convertible debentures, which debentures are held by Brookfield Lending. Due to the defaults under the bridge credit facility and the convertible debentures, Milagro is now required to pay higher default interest rates under the bridge credit facility and convertible debentures, and is required to pay interest on the convertible debentures monthly rather than semi-annually. This results in a significant increase in the interest payable by the company on a monthly basis. Amounts paid by the company in respect of the increased interest will reduce the amount of cash Milagro has available to fund operations. Brookfield may now, pursuant to the terms of the bridge credit facility, seek to enforce its security over the company's assets. To Milagro's knowledge, Brookfield Lending has not taken any specific steps to enforce its security under the bridge credit facility or convertible debentures since Milagro went into default on Dec. 31, 2007. Brookfield Lending has also not yet provided notice to the company that it is accelerating the requirement to pay the principal amount of the convertible debentures. TSX Reviews Milagro's Eligibility Milagro said on Dec. 21, 2007, that the Toronto Stock Exchange is reviewing the company's eligibility for continued listing under the TSX's Remedial Review Process, and the company has been granted until Feb. 4, 2008 to demonstrate compliance with the TSX's requirements. To date, the company has not regained compliance with the requirements of the TSX as to: (i) the financial condition and/or operating results of the company, and (ii) the public distribution, price or trading activity of the company's common shares, and it is unlikely that the company will be able to demonstrate compliance to the TSX prior to Feb. 4, 2008. At that time, the company said it understood that the review arises largely from the fact that the company has a significant working capital deficiency and its $10,800,000 bridge credit facility with Brookfield Bridge Lending Fund Inc. matures on Dec. 31, 2007. The company currently does not have sufficient cash available to repay the bridge credit facility when due. In addition, the recent trading price of the company's common shares is below the range usually permitted by the TSX on a long term basis. The company disclosed that it is requesting a further 45-day period to meet the TSX's requirements. However, there is no certainty that the TSX will grant any extension, and the TSX may determine that the company's shares should be delisted. Efforts to Raise Capital The company said it is continuing its efforts to raise capital and pursue other transactions that would provide the company with cash to repay the bridge credit facility remedy its defaults under the convertible debentures and fund future operations. To date, the company has not yet settled definitive terms with respect to a transaction and there is no certainty that the company will be in a position to enter into any definitive agreements or complete a transaction. If the company is not able to conclude an agreement with respect to a transaction, it is unlikely that the company will be able to continue as a going concern or maintain its listing on the TSX. About Milagro Headquartered in Calgary, Alberta, Milagro Energy Inc. (TSE:MIG) - - http://www.milagroenergy.com/-- is a natural resource company involved in the acquisition, exploration, development and production of petroleum and natural gas reserves in western Canada. The company's principal properties are located in the provinces of British Columbia, Alberta and Saskatchewan. During the year ended Dec. 31, 2006, average daily production was 527 barrels of oil equivalent per day, comprising 300 barrels of oil and natural gas liquids and 1,365 million cubic feet of natural gas. On Jan. 1, 2006, the company and Tri Seven Resources Ltd. were amalgamated under the name Milagro Energy Inc. On March 7, 2006, Milagro acquired Chirripo Resources Inc. On March 7, 2006 Milagro and Chirripo were amalgamated under the name Milagro Energy Inc. MLW LLC: Voluntary Chapter 11 Case Summary ------------------------------------------ Debtor: M.L.W., L.L.C. 10207 100th Street South Boynton Beach, FL 33437 Bankruptcy Case No.: 08-11013 Chapter 11 Petition Date: January 29, 2008 Court: Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Craig A. Pugatch, Esq. 101 Northeast 3 Avenue, Suite 1800 Fort Lauderdale, FL 33301 Tel: (954) 462-8000 Fax: (954) 462-4300 Total Assets: $1,100,283 Total Debts: $944,980 The Debtor does not have any creditors who are not insiders. MOHEGAN TRIBAL: Eyes Acquisition of Tropicana and Trump Marina -------------------------------------------------------------- Casino operator Mohegan Tribal Gaming Authority, has indicated interest in expanding in Atlanta City, Judy DeHaven wrote for The Star-Ledger on Tuesday, citing Mitchell Etess, chief executive officer. The Mohegan Tribe has already expressed interest in rescuing Tropicana Entertainment LLC after its gaming license was revoked. The Associated Press verified the news Wednesday with Mohegan Sun Casino's chief operating officer, Jeffrey Hartmann, who refused to give details but confirmed that the Mohegans are in fact contemplating on buying Tropicana in hopes to expand its business. According to Mr. Hartmann, the Mohegans is seeking "the right opportunity to leverage what" they have started," AP notes. According to AP, Mohegan Sun is presently developing a 38-storey hotel and casino with 1,000 rooms and spa. On the other hand, the Mohegans are currently in negotiation with Trump Entertainmnent Resorts Inc. regarding an acquisition of Trump Marina Hotel Casino, AP reveals, citing sources knowledgeable with the issue. Reporters were not able to get comments from both Donald Trump and Trump's chief executive, Mark Juliano. About Trump Entertainment Resorts Inc. Based in Atlantic City, New Jersey, Trump Entertainment Resorts Inc. (NASDAQ:TRMP) -- http://www.trump.com-- owns and operates three casino hotel properties: Trump Taj Mahal Casino Resort, Trump Plaza Hotel and Casino and Trump Marina Hotel Casino. Trump Entertainment conducts gaming activities and provides customers with casino resort and entertainment experiences. The company is the successor to Trump Hotels & Casino Resorts Inc. and its subsidiaries. During the year ended Dec. 31, 2006 the company focused on property and operational changes. It commenced the first phase of its renovation capital program and began construction of a 786-room hotel tower at the Trump Taj Mahal. About Tropicana Entertainment Tropicana Entertainment LLC -- http://www.tropicanacasinos.com/-- is an indirect subsidiary of Tropicana Casinos and Resorts. The company is one of the largest privately-held gaming entertainment providers in the United States. Tropicana Entertainment owns eleven casino properties in eight distinct gaming markets with premier properties in Las Vegas, Nevada and Atlantic City, New Jersey. About Mohegan Tribal Mohegan Tribal Gaming Authority -- http://mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe with an approximately 507-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority operates Mohegan Sun, a gaming and entertainment complex on a 240-acre site on the Tribe's reservation and, through its subsidiary, Downs Racing LP, owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania and five off-track wagering facilities located elsewhere in Pennsylvania. Mohegan Sun currently operates in an about 3 million square foot facility, which includes the Casino of the Earth, Casino of the Sky, the Shops at Mohegan Sun, a 10,000-seat Arena, a 350-seat Cabaret, meeting and convention space and the about 1,200-room luxury Sky hotel. * * * As of Aug. 9, 2007, the company holds Moody's Ba1 long-term corporate family rating and probability of default rating, and Ba2 senior subordinate rating. The outlook is stable. Standard & Poor's also rates the company's long-term foreign and local issuer credits at BB- with a stable outlook. MOUNT SINAI MEDICAL: Moody's Maintains 'Ba1' Long-Term Ratings -------------------------------------------------------------- Moody's Investors Service affirmed the Ba1 long-term ratings assigned to Mount Sinai Medical Center of Florida's outstanding debt issued through the City of Miami Beach Health Facilities Authority. The outlook has been revised to negative from stable, reflecting the unexpected reversal of what had been a generally improving operating trajectory, caused by issues that Moody's believes will continue over the next year and could impart heightened credit risk. Debt affected by this action is listed at the conclusion of this report. Legal security: All outstanding bonds are secured by: a gross revenue pledge of the obligated group; a full and irrevocable guaranty of the Mount Sinai Medical Center Foundation (the Foundation) for principal and interest payments; a mortgage on MSMC's south campus; MSMC's right, title and interest in the ground lease on the land that the north campus is situated on, and; a negative pledge from the Medical Center and the Foundation. Interest rate derivatives: None Strengths * Still solid cash position ($124.9 million at Sept. 30, 2007; 99 days), held by MSMC and Foundation (Foundation provides irrevocable guaranty to bonds) despite growing operating losses and large cash outlays for land and malpractice * Established management team with appropriate financial rigor as evidenced by ability to sustain expense structure despite investments in physicians and volume challenges * Clearly articulated operational imperatives to achieve much needed top line growth; though fundamentals of market could hinder improvement * Land associated with former campus at the Miami Heart Hospital is prime waterfront real estate on Miami Beach that can be monetized Challenges * Revenue contraction resulting from a sizable decline in patient volumes across inpatient and outpatient service lines, which poses a fundamental challenge to MSMC's ability to achieve the enterprise growth needed to stabilize operations * Debt levels remain very high relative to size of operations (debt to cash flow of 15 times in 2006) and balance sheet liquidity (cash to debt 46%) * Growing losses related to physician practices (recruitment for specialists); projected to hit $8.4 million for the full fiscal year 2007 * Multi faceted plans for enterprise growth may prove to be dilutive as the use of debt or cash would be required to execute these initiatives Recent Developments Moody's believes fundamental characteristics of the market suggest that current challenges may be pervasive. These fundamentals include heavy competition, especially for the more profitable services, and shifting demographic trends on Miami Beach toward a younger population. To that end, competition from cardiac programs established at two local competitors Aventura and Palmetto Hospitals, have contributed to an open heart case decline AT MSMC of 35% from 978 in 2003 to 722 in 2006. After witnessing would appeared to be stabilization of inpatient volume in FY 2006, inpatient volumes have declined 10% through 9 months of FY 2007. Moreover, through 9 months of FY 2008, open heart volumes declined another 24%. Looking forward, management expects recent and planned physician recruitments will drive a reversal of inpatient volume trends over the intermediate term though the FY 2008 budget assumes a 2.8% inpatient decline. Through nine months of FY 2007 MSMC has incurred a $6.2 million operating loss (excluding a $7.5 million contribution from the Foundation) compared with a $4.2 million operating loss in FY 2006 (excluding a $7.5 million contribution from the Foundation) against a budget that reflected expectations for break-even operating performance. In spite of aggressive cost reductions (expenses declined by .5%) and business cycle initiatives, variances to budget are largely tied to continued volume declines that have resulted from the shifting demographic on Miami Beach (10% inpatient decline through 9 months of FY 2007) as well as increased competition for cardiac services as discussed above. Operating cashflow of $25.5 million is 10% lower then the comparable period in FY 2006. Furthermore, 2006 operating cashflow had fallen by more then 15% from FYE 2005. Key financial ratios have deteriorated from already weak levels with 15.0 times debt to cashflow and 1.6 times maximum annual debt service coverage at FYE 2006, comparing unfavorably to levels that had demonstrated improvement through FYE 2005. Moreover, revenue contraction of 1.27% through 9 months of FY 2007, after several years of sluggish growth, threatens to impede the organization's longer-term momentum. Management was expecting performance in the fourth quarter of 2007 to begin to reflect certain expense and revenue initiatives including workforce reductions, reduced use of agency nurses, supply chain efficiencies, revenue cycle improvement and physician recruitment. While these initiatives should mitigate some of the operational shortfalls, Moody's believes they will not be adequate given the recurring and systemic nature of the issues the system faces. Ability to grow top line revenue from restoring the trajectory of core clinical enterprise remains a crucial element to long-term future improvement and credit risk stability at the current rating. Moody's is encouraged that the combined unrestricted liquidity balances held by MSMC and the Foundation remains solid, although resources remain modest and highly leveraged for an organization of this size. The combined unrestricted cash balances totaled $124.9 million at Sept. 30, 2007, equating to an adequate 99 days. Leveraged is evidenced by cash to debt coverage of just 46%. Cash increased by almost $19 million from FYE 2006 due to a combination of cost report settlements, hurricane settlements, and third party payor settlements despite cash outlays totaling more then 12.0 million for land acquisition related to the Miami Heart Center site and malpractice premiums. While strategic capital projects are being considered, including the consideration of a new hospital to the north of the beach in Aventura, management reports that new money borrowings will not be considered until operations are at least stable. The MSMC Foundation which provides explicit and unconditional support to the clinical operations will likely provide for a portion of MSMC's larger strategic capital needs through its considerable fundraising strength. Outlook The negative outlook reflects the unexpected reversal of what had been a generally improving operating trajectory, caused by issues that Moody's believes will continue over the next year and could impart heightened credit risk What could change the rating - Up Ability to achieve and sustain enterprise growth as measured by revenue and volumes that translates into a consistent track record of operating cash flow at higher levels and a reduction of debt outstanding or significant growth in liquidity What could change the rating - Down Further deterioration of financial performance or liquidity levels; enterprise contraction that results in continuous trend of market share loss; an increase in debt without commensurate growth in cash flow or liquidity Key Indicators Assumptions & Adjustments: - Based on financial statements for Mount Sinai Medical Center of Florida, Inc. & Subsidiaries; - First number reflects audit year ended Dec. 31, 2005; - Second number reflects audit year ended Dec. 31, 2006; - Operating income in each FY 2005 and 2006 excludes a $10 million transfer from the Foundation; - Investment returns smoothed at 6% unless otherwise noted. * Inpatient admissions: 24,319; 24,833 * Total operating revenues: $447.0 million; $467.9 million * Moody's-adjusted net revenue available for debt service: $41.9 million; $35.9 million * Total debt outstanding: $278 million; $273 million * Maximum annual debt service (MADS): $22.8 million; $22.8 million * MADS Coverage with reported investment income: 1.7 times; 1.5 times * Moody's-adjusted MADS Coverage with normalized investment income: 1.8 times; 1.6 times * Debt-to-cash flow: 11.8 times; 15.0 times * Days cash on hand: 94 days; 84 days * Cash-to-debt: 40%; 38.7% * Operating margin: -1.8%; -2.8% * Operating cash flow margin: 7.8%; 6.3% Rated Debt Series 1998, Series 2001A and Series 2004 bonds NORTHWEST AIRLINES: Completes Acquisition of Midwest Air Group -------------------------------------------------------------- The sale of Midwest Airlines' parent company, Midwest Air Group, Inc., to Midwest Air Partners, LLC, -- a limited liability company formed by an affiliate of TPG Capital, L.P. and Northwest Airlines Corp.-- closed on January 31, 2008. As previously reported, under Midwest Air Group's merger agreement dated August 16, 2007, with Midwest Air Partners, TPG Capital and Northwest have delivered equity commitment letters aggregating: Equity Provider Commitment Amount --------------- ----------------- TPG Partners V, L.P. $238,111,703 Northwest Airlines, Inc. 213,250,000 ------------ Total $451,361,703 Northwest is a passive, minority investor in the new ownership structure. The closing of the sale is the start of a new era for "The best care in the air," according to Timothy E. Hoeksema, Midwest's chairman and chief executive officer. "We're looking forward to capitalizing on TPG's considerable experience in the airline industry to help us continue to meet -- and exceed -- the expectations of the traveling public," said Mr. Hoeksema. TPG's 15-year record of investing in the aviation industry includes Continental Airlines, America West, Ryanair, Hotwire.com, Gate Gourmet, Sabre and other well-respected brands. Mr. Hoeksema said Midwest would benefit from TPG's strength and expertise as the airline executes its comprehensive strategic plan. In 2008, that includes the implementation of seating choice throughout the airline's mainline fleet; growth and enhancement of its existing codeshare agreement with Northwest Airlines; and the introduction of a wide-ranging environmental initiative that the airline has named "The best care for the air." The environmental initiative will build on the TPG companies' long-standing environmental stewardship and Midwest's track record of environmentally conscious decision-making. Over the last five years, Midwest has reduced its carbon emissions rate more than 20% through fuel-conservation efforts that include: -- Replacement of its DC-9 aircraft fleet with new, fuel- efficient Boeing717 aircraft. -- Full-scale use of electric ground power and preconditioned air units at its Milwaukee hub. -- Increased implementation of single-engine taxiing, along with improved aircraft flight control surface rigging and trim, reduced aircraft weight and minimized aircraft idle time. -- Increased use of aircraft pushback tractors and electric- powered ground support vehicles. As part of the initiative, Midwest will partner with Boulder, Colorado-based Sustainable Travel International to offer travelers environmentally responsible travel planning choices -- including a carbon-offset program. Additional details will be announced as the program is rolled out during 2008. "We are proud to support this venture given Midwest's commitment to energy efficiency and the TPG companies' long-standing environmental stewardship," explained Brian T. Mullis, president of Sustainable Travel International. "We are looking forward to helping Midwest and their customers to protect the environment by enhancing the company's sustainability initiatives." In terms of the transaction, Mr. Hoeksema pledged that the airline's commitment to providing outstanding customer service would also continue under the new ownership structure. The acquisition by TPG will preserve Midwest as Milwaukee's hometown airline and the popular Midwest brand -- known for its comfortable seating, high level of customer service and baked-onboard chocolate chip cookies. "We're excited to partner with TPG," Mr. Hoeksema said. "The management of TPG genuinely shares our dedication to quality, and respects our brand and what we've achieved. They've expressed confidence in our business plans, leadership and employees." Richard P. Schifter, partner, TPG Capital, added, "We at TPG are very enthusiastic about the future of Midwest. We see significant value in Midwest's rich legacy as a leading provider of customer- oriented air service -- and that's why we are investing in Midwest. Our goal is to work with Midwest's excellent management team and loyal workforce to look for opportunities to grow and enhance service for customers in the greater Milwaukee and Kansas City metropolitan areas and throughout the airline's network." Additionally, Midwest will work with Northwest Airlines to enhance its existing codeshare partnership and to achieve cost synergies in areas like aviation insurance and fuel purchases, especially important in light of the expected high cost of fuel in 2008. "As we enter this new era for our airline, we'd like to take the opportunity to express our sincere thanks to our customers, the communities in which we do business, employees and former shareholders for their tremendous support," said Mr. Hoeksema. The airline will celebrate "A Dozen Thanks Day" on Tuesday, February 12. Midwest employees will hand out the airline's popular chocolate chip cookies at Milwaukee's General Mitchell International Airport and Kansas City International Airport. Members of the airline's Midwest Miles program who fly that day will receive 1,200 bonus miles. And customers who receive the airline's weekly fare special e-mails will receive a code that entitles them to a 12% discount on tickets purchased that day. Trading of Midwest Air Group stock on the American Stock Exchange concluded as of the close of trading on January 31, 2008. Shareholders will be notified of the process to liquidate their holdings, which will vary depending on how the stock is held. Distribution of payouts will occur as soon as practicable. About Northwest Airlines Northwest Airlines Corp. (NYSE: NWA) -- http://www.nwa.com/-- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and about 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents. Northwest and its travel partners serve more than 1000 cities in excess of 160 countries on six continents, including Italy, Spain, Japan, China, Venezuela and Argentina. The company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for bankruptcy, they listed US$14.4 billion in total assets and $17.9 billion in total debts. On Jan. 12, 2007 the Debtors filed with the Court their Chapter 11 Plan. On Feb. 15, 2007, they Debtors filed an Amended Plan & Disclosure Statement. The Court approved the adequacy of the Debtors' Disclosure Statement on March 26, 2007. On May 21, 2007, the Court confirmed the Debtors' Plan. The Plan took effect May 31, 2007. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services raised its ratings on Northwest Airlines Corp. and its Northwest Airlines Inc. subsidiary, including raising the long-term corporate credit ratings on both entities to 'B+' from 'D', following their emergence from Chapter 11 bankruptcy proceedings. S&P said the rating outlook is stable. In addition, S&P assigned a 'BB-' bank loan rating, one notch above the corporate credit rating, with a '1' recovery rating, to Northwest Airlines Inc.'s $1.225 billion bankruptcy exit financing, based on S&P's expectation of a full recovery of principal in the event of a second Northwest bankruptcy. That bank facility converted from a debtor-in-possession credit facility; S&P withdrew the 'BBB-' rating on the DIP facility. PACIFIC LUMBER: Obtains Court Nod to Sell Redwood Lumber to Mirada ------------------------------------------------------------------ The Pacific Lumber Company sought and obtained authority from the U.S. Bankruptcy Court for the Southern District of Texas to sell redwood lumber to its affiliate, Mirada Property Company, a Delaware corporation and indirect wholly owned subsidiary of MAXXAM. PALCO believes the sale of redwood lumber to Mirada is clearly in the ordinary course of its business, and do not require Court approval, Nathaniel Peter Holzer, Esq., at Jordan, Hyden, Womble, Culbreth, & Holzer, P.C., in Corpus Christi, Texas, states. Nevertheless, because the proposed sale is to an "insider", PALCO sought the Court's permission in an abundance of caution. PALCO previously obtained Court approval, with the agreement of its major creditor constituencies, to sell redwood logs to its parent company, MAXXAM. However, the MAXXAM Log Purchase Agreement does not work for PALCO's contemplated sales of redwood lumber, primarily because, unlike logs, PALCO intends that the sales of lumber to Mirada be final sales, Mr. Holzer explains. PALCO does not expect to repurchase any lumber that it will be selling at a profit and at market prices to Mirada, he adds. The Debtors are funding significant fees and expenses associated with its reorganization. The fees and expenses are expected to continue, and will likely increase through April 2008. PALCO has more than enough redwood lumber inventory on hand to meet existing demand, Mr. Holzer says. Thus, in order to provide liquidity to PALCO, Mirada has agreed, but is not obligated to purchase redwood lumber from PALCO at prevailing market prices, pursuant to the terms of a redwood lumber purchase agreement. In a separate filing, Marathon Structured Finance Fund L.P., DIP Lender and Agent under the proposed DIP Credit Agreement dated August 2007, objected to the Redwood Lumber Sale and asserted that it had insufficient time to review the contemplated transactions. "The terms of the proposed sale are less advantageous to the Debtors, their estates and creditors than the terms of the [MAXXAM] log sale approved earlier this week," Marathon maintained. Judge Schmidt authorized PALCO to sell to Mirada 3.4 mmbf of redwood lumber for $4,051,000. The lumber will be delivered to an offsite facility leased by Mirada. MAXXAM has informed PALCO that its willingness to permit Mirada to make the purchase is due to its belief in the value of PALCO, and of PALCO's ownership interest in Scotia Pacific Company LLC. About Pacific Lumber Based in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co- counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones LLP, represents the Official Committee of Unsecured Creditors. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors filed their Joint Plan of Reorganization on Sept. 30, 2007, which was amended on Dec. 20, 2007. The Debtors' exclusive plan filing period expires on Feb. 29, 2008. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 42, http://bankrupt.com/newsstand/or 215/945-7000). PACIFIC LUMBER: Wants BoNY's Request for Ch. 11 Trustee Dismissed ----------------------------------------------------------------- Scotia Pacific Company LLC asks the U.S. Bankruptcy Court for the Southern District of Texas to dismiss the request of The Bank of New York Trust Company N.A., as Indenture Trustee for the Timber Notes, for the appointment of a Chapter 11 Trustee. The request of the Indenture Trustee for the appointment of a Chapter 11 trustee is merely the latest salvo in the Timber Noteholders' campaign to take over Scopac's valuable and unique timberlands, rather than preserving them for the benefit of all creditors and interest holders, Kathryn A. Coleman, Esq., at Gibson, Dunn Crutcher LLP, in New York, contends. The timing of the Trustee Motion is impracticable, Ms. Coleman argues. The hearing for the request is only one week before the beginning of the joint disclosure statement hearing on all competing plans of reorganization, and five weeks before the scheduled beginning of the confirmation hearing, she notes. The Court had previously expressed its concern about taking any action that is likely to give any party an unfair advantage in the confirmation process, Ms. Coleman notes. The appointment of a trustee for Scopac would give the Noteholders an advantage, because having to respond to "the lengthy Motion" will, in itself, skew the process and significantly disadvantage Scopac, she asserts. The Trustee Motion merely attempts to re-litigate half a dozen issues the Noteholders lost in the Debtors' Chapter 11 cases in the closing months of 2007, Ms. Coleman reiterates. She notes that the Indenture Trustee's assertions in the Trustee Motion -- that Scopac adopted business practices that impaired its financial position, transferred value to The Pacific Lumber Company, and failed to exercise independent control over its operations, among others -- are all the same arguments the Noteholders have used repeatedly to oppose every action of Scopac since a contested cash collateral motion was heard in September 2007. As reported in the Troubled Company Reporter on Jan. 17, 2008, Toby L. Gerber, Esq., at Fulbright and Jaworski L.L.P., in Houston, Texas, on the Indenture Trustee's behalf, contended that that the persons entrusted with managing the business and financial affairs of Scopac have abdicated their independent control of Scopac, have failed to preserve the corporate independence of Scopac, and have engaged in financial and business activities which have caused substantial harm to the Scopac estate and its creditors. About Pacific Lumber Based in Oakland, California, The Pacific Lumber Company -- http://www.palco.com/-- and its subsidiaries operate in several principal areas of the forest products industry, including the growing and harvesting of redwood and Douglas-fir timber, the milling of logs into lumber and the manufacture of lumber into a variety of finished products. Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned subsidiaries of Pacific Lumber. Scotia Pacific, Pacific Lumber's largest operating subsidiary, was established in 1993, in conjunction with a securitization transaction pursuant to which the vast majority of Pacific Lumber's timberlands were transferred to Scotia Pacific, and Scotia Pacific issued Timber Collateralized Notes secured by substantially all of Scotia Pacific's assets, including the timberlands. Pacific Lumber, Scotia Pacific, and four other subsidiaries filed for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan, Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J. Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia Pacific's lead counsel. John F. Higgins, Esq., and James Matthew Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co- counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones LLP, represents the Official Committee of Unsecured Creditors. When Pacific Lumber filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. Scotia Pacific listed total assets of $932,000,000 and total debts of $765,978,335. The Debtors filed their Joint Plan of Reorganization on Sept. 30, 2007, which was amended on Dec. 20, 2007. The Debtors' exclusive plan filing period expires on Feb. 29, 2008. (Scotia/Pacific Lumber Bankruptcy News, Issue No. 42, http://bankrupt.com/newsstand/or 215/945-7000). POINT THERAPEUTICS: Stockholders' Meeting Adjourned to February 12 ------------------------------------------------------------------ Point Therapeutics Inc. has adjourned its annual meeting of stockholders, which commenced on Jan. 29, 2008, until Tuesday, Feb. 12, 2008, at 10:00 a.m., Eastern Time, at the law office of Ropes & Gray LLP, One International Place, 36th Floor, Boston, Massachussetts. At the February 12 meeting, Point stockholders will vote on several proposals in connection with the proposed merger with DARA Biosciences Inc. The meeting was adjourned to allow for the solicitation of additional votes in favor of the proposals. While proxies received to date have been in favor of the merger-related proposals, approval of a majority of the outstanding Point shares is necessary for certain of the proposals to be approved. Point attributes the shortfall to the fact that the company has a large and diverse stockholder base. On Jan. 28, 2008, DARA BioSciences conducted a special meeting of its stockholders. At that meeting, the DARA stockholders approved the merger transaction with Point. Point encourages all of its stockholders to vote at the annual meeting. Point's board of directors has determined that the merger with DARA Biosciences is advisable and fair to and in the best interests of Point stockholders and recommends that Point stockholders vote "FOR" all the proposals. Bankruptcy Warning If Point is unable to obtain the vote necessary to approve the proposed transaction, the company relates it will have to seek bankruptcy protection. Point intends to continue to solicit votes and proxies in favor of the proposals during the period from now through Feb. 12. During this time, stockholders will continue to be able to vote their shares for or against the proposals, or to change their previously cast votes. Point stockholders are reminded that their vote is important regardless of how many or how few shares they own. Stockholders who have any questions relating to this shareholder meeting or voting their shares may call Point's proxy solicitor, The Altman Group, toll-free at (866) 406-2289. About DARA BioSciences Raleigh, North Carolina-based, Dara BioSciences Inc. -- http://www.darabiosciences.com/-- is a development-stage pharmaceutical company that acquires promising therapeutic molecules and medical technologies directly. DARA focuses its therapeutic development efforts on small molecules from late preclinical development through phase 2 clinical trials. DARA is developing a portfolio of therapeutic candidates for neuropathic pain, metabolic diseases including Type 2 diabetes, and dermatological disorders. About Point Therapeutics Headquartered in Boston, Point Therapeutics Inc. (NASDAQ: POTP) -- http://www.pther.com/-- is a biopharmaceutical company which has studied its lead product candidate, talabostat, in a number of human clinical trials in late-stage cancers. Recent interim clinical results caused Point's Independent Data Monitoring Committee to recommend stopping Point's most advanced clinical trials, two Phase 3 talabostat studies for patients in advanced non-small cell lung cancer. Subsequently, the talabostat clinical development program was put on clinical hold by the FDA. Point has also studied talabostat in several Phase 2 trials, including as a single-agent and in combination with cisplatin in metastatic melanoma, in combination with rituximab in advanced chronic lymphocytic leukemia, and in combination with gemcitabine in Stage IV pancreatic cancer. Due to cash limitations, Point is not currently funding any research or clinical operations. Going Concern Doubt Ernst & Young LLP raised substantial doubt about Point Therapeutics Inc.'s ability to continue as a going concern. The company has incurred recurring operating losses and negative cash flows from operating activities in each of the last five years and has an accumulated deficit of $91,734,000 as of Dec. 31, 2006, and will be required to obtain additional funding or alternative means of financial support, prior to Dec. 31, 2007. POINT THERAPEUTICS: Gets Additional Nasdaq Non-Compliance Notice ---------------------------------------------------------------- Point Therapeutics Inc. disclosed that on Jan. 25, 2008, it received an additional notice of non-compliance from the staff of the Listing Qualifications Department of The NASDAQ Stock Market LLC due to the fact that it does not have three independent directors on its audit committee, as required by Marketplace Rule 4350 (d)(2)(A). The company had previously received several notices of non- compliance with the NASDAQ listing standards. Point has advised NASDAQ that it will be in a position to comply, and intends to comply, with the audit committee requirement promptly after the closing of the merger. On Dec. 17, 2007, the NASDAQ Listing Qualifications Panel granted Point's request for continued listing of its securities on The NASDAQ Capital Market, subject to satisfaction of certain conditions by Jan. 30, 2008, including completion of the merger with DARA and approval of a NASDAQ initial listing application filed by Point and DARA on Oct. 26, 2007. Point has requested that the Panel allow continued listing of its securities, subject to satisfaction by Feb. 13, 2008, of the imposed conditions; however, there can be no assurance that the Panel will grant Point's request. If the Panel does not grant this request, NASDAQ could determine to de-list Point's securities immediately since the merger with DARA, and approval of the NASDAQ initial listing application, will not be completed by Jan. 30, 2008. About Point Therapeutics Headquartered in Boston, Point Therapeutics Inc. (NASDAQ: POTP) -- http://www.pther.com/-- is a biopharmaceutical company which has studied its lead product candidate, talabostat, in a number of human clinical trials in late-stage cancers. Recent interim clinical results caused Point's Independent Data Monitoring Committee to recommend stopping Point's most advanced clinical trials, two Phase 3 talabostat studies for patients in advanced non-small cell lung cancer. Subsequently, the talabostat clinical development program was put on clinical hold by the FDA. Point has also studied talabostat in several Phase 2 trials, including as a single-agent and in combination with cisplatin in metastatic melanoma, in combination with rituximab in advanced chronic lymphocytic leukemia, and in combination with gemcitabine in Stage IV pancreatic cancer. Due to cash limitations, Point is not currently funding any research or clinical operations. Going Concern Doubt Ernst & Young LLP raised substantial doubt about Point Therapeutics Inc.'s ability to continue as a going concern. The company has incurred recurring operating losses and negative cash flows from operating activities in each of the last five years and has an accumulated deficit of $91,734,000 as of Dec. 31, 2006, and will be required to obtain additional funding or alternative means of financial support, prior to Dec. 31, 2007. POLAR MOLECULAR: Section 341(a) Creditors Meeting Set for Feb. 20 ----------------------------------------------------------------- The United States Trustee for Region 19 will convene a meeting of Polar Molecular Corp.'s creditors at 9:30 a.m., on Feb. 20, 2008, at the U.S. Custom House, 721 195h St., Room 104 in Denver, Colorado. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Denver, Polar Molecular Corp. develops and sells fuel additives. The company also sells marketing rights to others to sell the same fuel additives. The company filed for Chapter 11 protection on Jan. 11, 2008 (Bank. D. Colo. Case No. 08-10346). D. Bruce Coles, Esq., at Quinn & Coles, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets of $400,001,522 and estimated debts of $5,123,574. POLAR MOLECULAR: Taps Quinn & Coles as Bankruptcy Counsel --------------------------------------------------------- Polar Molecular Corp. asks the U.S. Bankruptcy Court for the District of Colorado for permission to employ Quinn & Coles P.C. as its counsel. As the Debtor's bankruptcy counsel, Quinn & Coles will: a) provide the Debtor with legal advice with respect to its powers and duties; b) aid the Debtor in the development of a plan of reorganization under Chapter 11; c) file the necessary petitions, pleadings, reports, and actions which may be required in the continued administration of the Debtor's property under Chapter 11; d) take necessary actions to enjoin and stay until final decree herein continuation of pending proceedings and to enjoin and stay until final decree herein commencement of lien foreclosure proceedings and all matters as may be provided under 11 U.S.C. 362; and e) perform all other legal services for the Debtor which may be necessary herein. D. Bruce Coles, Esq., a shareholder at Quinn & Coles P.C., assures the Court that the law firm does not represent any interest adverse to Debtor or its estate, and that the firm is a "disinterested" person as that term is defined in section 101(14) of the Bankruptcy Code. Mr Coles tells the Court that the Court that Mr. Quinn is billing $315 per hour and Mr. D. Bruce Coles is billing $300 per hour. Quinn & Coles adds that the firm was paid a pre-petition retainer for payment of post-petition fees and costs in this case in the amount of $28,450, and that the firm was paid pre=petition fees and costs, including the filing fee, by the Debtor in the amount of $11,550. Charles F., McVay, the United States Trustee for Region 19, objects to the Debtor's employment of Quinn & Coles P.C. as counsel for the Debtor, for the following reasons: -- Quinn & Coles Application and Statement is incomplete. The U.S. Trustee says that the firm failed to disclose the sources of the retainer and whether said sources are an insider of the Debtor or if there are like principals for the source and the Debtor. The U.S. Trustee also stated that Quinn & Coles fails also to demonstrate and represent that there are no facts which would create a conflict. -- Payment of retainers may have been made by third party insiders. The U.S. Trustee tells the Court that he reserves his right to amend his Objection upon discovery of new information from the First Meeting of Creditors on Feb. 20, 2008. Mr. Coles can be contacted at: D. Bruce Coles, Esq. Quinn & Coles P.C. 3773 Cherry Creek Drive North, Suite 620 Denver, Colo. 80209-3820 Headquartered in Denver, Polar Molecular Corp. develops and sells fuel additives. The company also sells marketing rights to others to sell the same fuel additives. The company filed for Chapter 11 protection on Jan. 11, 2008 (Bank. D. Colo. Case No. 08-10346). When the Debtor filed for protection from its creditors, it listed estimated assets of $400,001,522 and estimated debts of $5,123,574. PUBLICARD INC: Emerges from Bankruptcy as Chazak Value Corp. ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York confirmed the First Amended Plan of Reorganization of PubliCARD, Inc. (In re: PubliCARD, Inc., Case No. 07-11517) which will now be known as Chazak Value Corp. The new company will focus on building its existing smart card business as well as acquiring privately held businesses in the $10-100 million revenue range that are seeking to restructure or that have succession issues. As reported in the Troubled Company Reporter on Jan. 18, 2008, The Court confirmed the Amended Chapter 11 Plan of Reorganization filed PubliCARD Inc. The Court had previously approved on Nov. 29, 2007, the Debtor's Amended Disclosure Statement describing the Amended Plan. Under the Plan, The 500 Group, LLC, an entity currently controlled by PubliCARD's Chief Executive Officer, Joseph E. Sarachek is receiving 90% of the Reorganized Debtor's common stock. Under the Plan, all outstanding shares of PubliCARD common stock and preferred stock were cancelled. Former holders of PubliCARD's common will receive an aggregate of 5% of the Reorganized Debtor's common stock (256,676 shares) and former holders of PubliCARD's preferred stock will also receive an aggregate of 5% of the Reorganized Debtor's common stock (256,676 shares). Proceeds of The 500 Group's contribution will be used to fund the Reorganized Debtor, to pay allowed administrative expenses, allowed priority claims, and pay allowed general unsecured claims. Holders of general unsecured claims will receive an approximate 17% recovery. Under PubliCARD's Plan, the new company Chazak Value Corp. will issue 5,133,352 shares of common stock, including the shares being issued to The 500 Group. All existing holders of PubliCARD common stock with more than 100 shares will receive a distribution. New Board of Directors A new Board of Directors for Chazak has been installed consisting of investment professionals with considerable restructuring and investment management expertise. In addition to Joseph Sarachek, who is Managing Director of Triax Capital Advisors, a restructuring and turnaround advisory firm, the Board consists of Roger Ehrenberg, former CEO of DB Advisors, the $6 billion, 130- person global investment platform of Deutsche Bank; Jonathan Lewis, a professional investment manager focused on value-related investments; Charles Fisch, a private investor and manager, specializing in New York real estate; and David Marcus who manages the Marcap Investors, a long-term investment company that invests in European equities. "Given the current market conditions, it is a favorable time to look for acquisitions of small privately-held cash flow positive companies with management teams in place," Joseph Sarachek, the Chairman and Chief Executive Officer of Chazak stated. About PubliCARD Headquartered in New York, PubliCARD Inc. fka Publicker Inc. is a smart card technology company that provides products and solutions to facilitate secure access and transactions. PubliCARD also licenses smart card reader technology and the integrated circuit technology within readers. filed a chapter 11 petition on May 17, 2007 (Bankr. S.D.N.Y. Case No. 07-11517). David C. McGrail, Esq., at the Law Offices of David C. McGrail in New York represents the Debtor in its restructuring efforts. As of Nov. 30, 2007, the company's balance sheet showed total assets of $26,206, total liabilities of $505,926. RENAISSANCE GRAND: Restructuring Plans to be Released by February ----------------------------------------------------------------- Historic Restoration Inc. and Housing Horizons, which partnered in the development of the Renaissance Grand and Suites Hotel, said they will disclose restructuring plan for the hotel by the end of next month, Lisa R. Brown writes for the St. Louis Business Journal. Steve Stogel, DFC Group president and volunteer ombudsman for the bondholders and hotel developers, in a call last January 22, said he is expecting the restructuring plan to be out in 30 days, Business Journal reports. Lack of Liquidity to Pay Debt The developers have been cooking restructuring plans since November last year, WSJ notes. The $277 million hotel in St. Louis suffered financially since it started operations in 2003, Business Journal says. The developers told Business Journal that they don't think the hotel will get sufficient money to repay loan obligations through 2012. The hotel borrowed $829,000 Kimberly-Clark in order to pay its interest on a $3.5 million loan, due on Dec. 15, 2007, Business Journal reveals. The hotel was funded by $98 million bonds and by loans guaranteed by St. Louis City, state of Missouri and the federal government, Business Journal adds. Bondholders can access information regarding the hotel's financial performance at: http://www.conventionhotelbondholders.com/ Robert Bray, hotel's general manager, told bondholders that he is expecting cash flows to reach $5.6 million this year, still over a million dollars below its $7 million debt obligation, Business Journal relates. In 2007, the hotel also failed to meet its projections, with only 65.1% occupancy rate, as compared with its projected 68%, while its average daily rate was down to $123.96 from the projected $125.50. Business Journal reports. About Historic Restoration New Orleans, Louisiana-based Historic Restoration Inc. -- http://www.hrihci.com/-- is a full service real estate development company and a national leader in the adaptive reuse of historic structures. About Housing Horizons Housing Horizons is a subsidiary of Kimberly-Clark Corporation -- http://www.kimberly-clark.com/-- located in Irving, Texas. It has well-known global brands are an indispensable part of life for people in more than 150 countries. Every day, 1.3 billion people -- nearly a quarter of the world's population uses K-C brands and the solutions they provide to enhance their health, hygiene and well-being. With brands such as Kleenex, Scott, Huggies, Pull- Ups, Kotex and Depend, Kimberly-Clark holds No. 1 or No. 2 share positions in more than 80 countries. About Renaissance Grand The Renaissance Grand and Suites Hotel is located in 800 Washington Avenue, St. Louis City adjacent to the America's Center convention complex. The hotel, developed by Historic Restoration Inc. and Housing Horizons, opened for business in 2003. SCO GROUP: Tanner LC Expresses Going Concern Doubt -------------------------------------------------- Tanner LC in Salt Lake City, Utah, raised substantial doubt about the ability of The SCO Group, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Oct. 31, 2007. The auditing firm related that the company is a debtor-in- possession under Chapter 11 of the U.S. Bankruptcy Code, has experienced significant and continuing net losses, and is faced with substantial contingent liabilities as a result of certain adverse legal rulings. The company posted a net loss of $6,826,000 on total revenue of $21,656,000 for the year ended Oct. 31, 2007, as compared with a net loss of $16,598,000 on total revenue of $29,239,000 in the prior year. A significant portion of the net loss and the cash used in operating activities was associated with the company protecting and defending its intellectual property rights. The company has an accumulated deficit of $258,366,000 as of October 31, 2007 and minimal working capital. As of Oct. 31, 2007, the company had a total of $5,554,000 in cash and cash equivalents and $3,099,000 in restricted cash, of which $1,833,000 is designated to pay for experts, consultants and other expenses in the SCO Litigation, and the remaining $1,266,000 of restricted cash is payable to Novell, Inc., inclusive of $118,000 included in liabilities subject to compromise for its retained binary royalty stream. At Oct. 31, 2007, the company's balance sheet showed $14,309,000 in total assets, $10,555,000 in total liabilities, and $3,754,000 stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2799 About SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Epiq Bankruptcy Solutions, LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' exclusive period to file a chapter 11 plan expires on March 12, 2008. The Debtors' schedules of assets and liabilities showed total assets of $9,549,519 and total liabilities of $3,018,489. SCRIPPS VINEYARDS: Files Schedules of Assets & Liabilities ---------------------------------------------------------- Scripps Vineyards Villas, LLC filed with the U.S. Bankruptcy Court for the Central District of California, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property Unknown B. Personal Property Unknown C. Property Claimed as Exempt D. Creditors Holding Secured Claims $24,929,244 E. Creditors Holding Unsecured Priority Claims Unknown F. Creditors Holding Unsecured Non-priority Claims Unknown ----------- ----------- TOTAL Unknown $24,929,244 La Jolla, California-based Scripps Vineyards Villas, LLC filed for Chapter 11 protection on Jan. 2, 2008 (Bankr. C.D. Calif. Case No. 08-10035). Michael B. Reynolds, Esq., at Snell & Wilmer, LLP, represents the Debtor in its restructuring efforts. SCRIPPS VINEYARDS: Section 341 Creditors' Meeting Set for Feb. 12 ------------------------------------------------------------------ The United States Trustee for Region 16 will convene a meeting of Scripps Vineyards Villas LLC's creditors at 2:30 p.m., on Feb. 12, 2008, at the U.S. Bankruptcy Court for the Central District of California office, Room 100A, 3420 Twelfth Street in Riverside, California. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in La Jolla, California, Scripps Vineyards Villas LLC filed for Chapter 11 protection on Jan. 2, 2008 (Bank. C.D. Calif. Case No. 08-10035). Michael B. Reynolds, Esq., at Snell & Wilmer LLP, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of $1 Million to $100 Million. SEQUOIA MORTGAGE: Fitch Downgrades Ratings on Seven Certificates ---------------------------------------------------------------- Fitch Ratings has taken various rating actions on these Sequoia Mortgage Funding Corporation mortgage pass-through certificates: Series 2006-1 -- Class A affirmed at 'AAA'; -- Class B-1 affirmed at 'AA'; -- Class B-2 affirmed at 'A'; -- Class B-3 downgraded to 'BB+' from 'BBB'; -- Class B-4 downgraded to 'B' from 'BB', placed on Rating Watch Negative; -- Class B-5 downgraded to 'C/DR5' from 'B'. Series 2007-1 -- Class A affirmed at 'AAA'; -- Class B-1 affirmed at 'AA'; -- Class B-2 downgraded to 'A-' from 'A'; -- Class B-3 downgraded to 'BB' from 'BBB'; -- Class B-4 downgraded to 'B' from 'BB', placed on Rating Watch Negative; -- Class B-5 downgraded to 'C/DR5' from 'B'. The affirmations reflect a satisfactory relationship between credit enhancement and future loss expectations and affect approximately $1.32 billion of outstanding certificates. The downgrades, affecting $21.9 million of outstanding certificates, reflects the deterioration in the relationship of CE to future loss expectations. For series 2006-1, the amount of loans with serious delinquencies (including 60+, foreclosure, bankruptcy, and real-estate owned) is 2.28% of the outstanding pool balance while the CE for the affected B-3, B-4 and B-5 bonds is 1.02%, 0.63% and 0.30%, respectively. For series 2007-1, the amount of loans with serious delinquencies (including 60+, foreclosure, bankruptcy, and real- estate owned) is 1.46% of the outstanding pool balance while the CE for the affected B-2 through B-5 bonds is 1.35%, 0.84%, 0.56% and 0.28%, respectively. In addition, class B-4 from both transactions, affecting approximately $4.4 million of outstanding certificates, was placed on Rating Watch Negative. Fitch will closely monitor these transactions over the next six months to see how loans move through the delinquency pipeline. If delinquencies and/or losses continue to amass, further rating action may be necessary. As of the January 2008 distribution date, series 2006-1 and 2007- 11 are seasoned 24 and 17 months, respectively, and the pool factors (current principal balance as a percentage of original) are approximately 76% and 85%, respectively. The underlying collateral for Sequoia Mortgage Funding Corporation transactions consists of prime hybrid adjustable-rate mortgage loans indexed to one- and six-month LIBOR. The loans were acquired from various originators by a subsidiary of Redwood Trust Inc., a mortgage real estate investment trust that invests in residential real estate loans and securities. The master servicer for the above deals is Wells Fargo Bank, N.A., rated 'RMS1' by Fitch. SHARPE LLC: Can Employ Kutner Miller as Bankruptcy Counsel ---------------------------------------------------------- Sharpe LLC obtained permission from the U.S. Bankruptcy Court for the District of Colorado to employ Kutner Miller Brinen P.C. as its counsel, As the Debtor's bankruptcy counsel, Kutner Miller will: a) provide the Debtor with legal advice with respect to its powers and duties; b) aid the Debtor in the development of a plan of reorganization under Chapter 11; c) file the necessary petitions, pleadings, reports, and actions which may be required in the continued administration of the Debtor's property under Chapter 11; d) take necessary actions to enjoin and stay until final decree herein continuation of pending proceedings and to enjoin and stay until final decree herein commencement of lien foreclosure proceedings and all matters as may be provided under 11 U.S.C. section 362; and e) perform all other legal services for the Debtor which may be necessary herein. Lee M. Kutner, Esq., a shareholder at Kutner Miller Brinen P.C., tells the Court that the firm's professionals bill: Attorney Hourly Rate ----------- ----------- Lee M. Kutner, Esq. $390 David M. Miller, Esq. $290 Jeffrey S. Brinen $320 Aaron A. Garber, Esq. $270 Jenny M.F. Fujii, Esq. $250 The frim was paid a pre-petition retainer in the amount of $33,169 and pre-petition fees and costs of $1,831. Lee M. Kutner assured the Court that the law firm does not represent any interest adverse to the Debtor or its estate, and that the firm is a "disinterested" person as that term is defined in section 101(14) of the Bankruptcy Code. Lee M. Kutner can be contacted at: Lee M. Kutner, Esq. Kutner Miller Brinen P.C. 303 East 17th Avenue Suite 500 Denver, Colo. 80203 Tel: (303) 832-2400 Fax: (303) 832-1510 http://www.kutnerlawoffice.com Headquartered in Bellvue, Colorado, Sharpe LLC filed for Chapter 11 protection on Jan. 8, 2008, (Bank. D. Colo. Case No. 08-10193). Lee M. Kutner, Esq., at Kutner, Miller, Brinen PC, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million. SHARPE LLC: Section 341(a) Creditors Meeting Set for Feb. 13 ------------------------------------------------------------- The United States Trustee for Region 19 will convene a meeting of Sharpe LLC's creditors at 9:30 a.m., on Feb. 13, 2008, at the U.S. Custom House, Room 104, 721 19th Street, in Denver, Colorado. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Bellvue, Colorado, Sharpe LLC filed for Chapter 11 protection on Jan. 8, 2008, (Bank. D. Colo. Case No. 08-10193). Lee M. Kutner, Esq., at Kutner, Miller, Brinen PC, represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million. SMART MODULAR: Moody's Lifts Corporate Family Rating to B1 From B2 ------------------------------------------------------------------ Moody's Investors Service raised the corporate family rating of SMART Modular Technologies, Inc. to B1 from B2 with a stable ratings outlook. The rating upgrade reflects Moody's expectations that SMART will be able to continue its solid execution and operating performance, which it has demonstrated over the last two years, particularly in spite of dramatic product price erosion in its core DRAM memory module segment. Moody's believes that SMART will be able to maintain its good market position as a leading independent memory module supplier, and will improve its financial leverage profile. The upgrade also considers SMART's gross and operating margin improvements through a more diversified product mix and the company's emphasis on growing its non-DRAM product segments, modest free cash flow generation and the maintenance of a good liquidity profile. Ratings upgraded include: -- Corporate Family Rating to B1 from B2 -- Probability of Default Rating to B1 from B2 -- $81 Million Senior Secured second lien notes to Ba3 (LGD-3, 38%) from B1 (LGD-3, 34%) The rating upgrade takes into consideration the company's enhanced credit protection measures and focus on financial leverage improvements through EBITDA expansion and moderate free cash flow generation, which Moody's expects will be applied to debt reduction. As of Nov. 30, 2007, SMART's adjusted debt of $95 million relative to its LTM adjusted EBITDA of $84 million results in leverage of 1.1 times as compared to 1.5 times in FY2006. Interest coverage, as measured by adjusted EBITDA to interest expense has improved to 7.6 times, which is comparable to the mean / median interest coverage level of 6.9 times for Moody's B1-rated technology peer group. Additionally, SMART's free cash flow relative to debt was 17.9% for LTM November 2007, which is also strong for the B1 rating range. As of Nov. 30, 2007, SMART had $113 million of cash and cash equivalents. Moody's notes that SMART is challenged by: 1) a very volatile, cyclical, and competitive industry characterized by rapid technological changes, short product life cycles, and wide fluctuations in product supply and demand; 2) significant customer concentration with its top ten customers constituting approximately 77% of its FY2007 revenues with Hewlett Packard and Cisco representing 48% and 13% of FY2007 revenues, respectively; 3) above average exposure to downturns in corporate technology spending; and 4) the potential for further pricing pressure in SMART's core DRAM memory segment resulting in revenues and gross profit decline. The stable outlook reflects Moody's expectation that SMART will be able to continue to effectively execute its manufacturing and technology roadmap including continued market penetration of its high-end, higher density DRAM modules, which carry higher ASPs and could help improve profitability and cash flow. SMART Modular Technologies, Inc., headquartered in Fremont, California and incorporated in the Cayman Islands, is a leading independent manufacturer of specialty and standard DRAM and Flash memory products, embedded computing subsystems, and TFT-LCD display products that are sold to OEMs. Revenues and adjusted EBITDA for the LTM ended November 2007 was $766 million and $84 million, respectively. SOUTH COAST: Moody's Junks Rating on $26 Million Class B Notes -------------------------------------------------------------- Moody's Investors Service placed these notes issued by South Coast Funding I, Ltd. on review for possible downgrade. Class Description: $319,200,000 Class A-1 Floating Rate Senior Notes due 2036 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $38,000,000 Class A-2 Floating Rate Senior Notes due 2036 -- Prior Rating: Aa1 -- Current Rating: Aa1, on review for possible downgrade In addition, Moody's downgraded and placed these notes on review for possible downgrade. Class Description: $26,000,000 Class B Floating Rate Senior Subordinate Notes due 2036 -- Prior Rating: Ba3 -- Current Rating: Caa1, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. SOUTH COAST: Moody's Downgrades Rating on $32.5 Million Notes ------------------------------------------------------------- Moody's Investors Service placed these notes issued by South Coast Funding II, Ltd. on review for possible downgrade. Class Description: $360,450,000 Class A-1 Floating Rate Senior Notes due 2037, -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $40,050,000 Class A-2 Floating Rate Senior Notes due 2037, -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade In addition, Moody's downgraded and placed these notes on review for possible downgrade. Class Description: $42,500,000 Class A-3 Floating Rate Senior Notes due 2037 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $32,500,000 Class B Floating Rate Senior Subordinate Notes due 2037 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. SPORTSSTUFF INC: Panel Can Employ McGrath North as Bankr. Counsel ----------------------------------------------------------------- The Official Committee of Unsecured Creditors in SportsStuff Inc.'s Chapter 11 case obtained permission from the U.S. Bankruptcy Court for the District of Nebraska to employ McGrath North Mullin & Kratz PC LLO as its counsel, effective as of Dec. 31, 2007. As the Committee's bankruptcy counsel, MNMK will: a) advise the Committee with respect to its duties and powers; b) assist the Committee with respect to consulting with the Debtor with respect to the administration of this case; c) assist the Committee in investigating the acts, conduct, assets, liabilities, and financial condition of the Debtor, the operation of the Debtor's business, potential claims, and any other matters relevant to the case or to the sale of assets or confirmation of a plan of reorganization or liquidation; d) assist the Committee in the analysis, negotiation and/or formulation of a Plan; e) assist the Committee in requesting the appointment of a trustee or examiner should such action be deemed necessary; f) prepare necessary motions, applications, objections and other pleadings as may be appropriate and authorized by the Committee and appear in Court to prosecute such pleadings; g) perform such other legal services as may be in the interests of those represented by the Committee. Douglas E. Quinn, Esq., a member at MNMK's insolvency practice group, tells the Court that the firm's professionals bill: Designation Hourly Rate ----------- ----------- Members $180 - $280 Associates $140 - $180 Legal Assistants $60 - $90 Mr. Quinn assured the Court that MNMK does not represent any interest adverse to the Debtor or its estate, and that MNMK is a "disinterested" person as that term is defined in section 101(14) of the Bankruptcy Code. Mr. Quinn can be contacted at: Douglas E. Quinn, Esq. McGrath North Mullin & Kratz P.C. First National Tower, Suite 3700 1601 Dodge Street Omaha, NE 68102 Tel: (402) 341-3070 Fax: (402) 341-0216 http://www.mcgrathnorth.com/ About SportsStuff Inc. Based in Omaha, Nebraska, SportsStuff Inc. - http://www.sportsstuff.com/-- sells sports accessories. The company filed for Chapter 11 protection on Dec. 31, 2007 (Bank. D. Neb. Case No. 07-82643). Robert V. Ginn, Esq., at Blackwell Sanders Peper Martin LLP represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed assets and debts between $1 million and $100 million. SPORTSSTUFF INC: Wants to Use Sun Pleasure's Cash Collateral ------------------------------------------------------------ SportsStuff Inc. asks authority from the U.S. Bankruptcy Court for the District of Nebraska to use the cash collateral of its secured lender Sun Pleasure Company Ltd. The Debtor relates that its products are produced and manufactured by various Chinese manufacturers that then the completed and finished products are sold to the Debtor on account. In order to secure the repayment of these accounts, all of the Debtor's assets are subject to security interests filed by Sun Pleasure Company, Ltd., a secured creditor. These assets constitute cash collateral. The Debtor tells the Court that it wants to use its current and future cash collateral from the sale of its products to purchase new inventory, pay its payroll, utilities, and accounts payable obligations as they come due. Sun Pleasure, the Debtor continues, consents to the Debtor's use of the cash collateral, pursuant to the terms and conditions of a joint stipulation. The Debtor will provide adequate protection to Sun Pleasure, including replacement liens, DIP liens, and repayment priority. Creditors' Committee Objects The Official Committee of Unsecured Creditors appointed in Debtor's Chapter 11 case objects to the request of the Debtor, citing that the joint stipulation in its current form is not in the best interest of the Debtor's estate. The Committee added that the Court should not sanction a financing arrangement that diverts value from general unsecured creditors, potentially puts them in a worse position than if the case was dismissed or converted to Chapter 7, and effectively limits the Committee's ability to fulfill its statutory duties. In reply to what it claims as overreaching provisions of the joint stipulation, the Committee suggested that the Court: -- extend the investigation period until April 30, 2008; -- allow the Committee to bring any lender and any claims against Sun Pleasure, which are held by the Debtor's estate without further Court approval; -- increase the monthly carve out in order that all professionals approved by the Court can participate; -- require Sun Pleasure to obtain relief from the automatic stay prior to exercising any remedies upon default; and -- require Sun Pleasure to follow the Bankruptcy Code, Bankruptcy Rule and the U.S. Trustee's guidelines in requesting payment of attorneys from the Debtor. Personal Injury Claimants' Objections Personal injury claimants' counsel James B. Cavanagh, Esq., at Lieben, Whitted, Houghton, Slowiaczek & Cavanagh P.C., filed the claimants' opposition to the approval of the joint stipulation regarding Debtor's use of cash collateral: 1) the request and the joint stipulation do not provide adequate protection for the interest of all creditors of the Debtor nor does it provide adequate protection of the interest of the personal injury claimants; 2) the transactions proposed are not in the best interest of the Debtor's estate or its creditors; 3) the transactions proposed do not provide sufficient information with respect to the proposed transactions or the necessity of the use of cash collateral. In particular, the personal injury claimants state that the joint stipulation fails to disclose information regarding the nature and extent of any "post petition credit on terms equivalent to the Parties ordinary course of dealing"; 4) the transactions improperly and artificially limit any challenge to the lien claims of Sun Pleasure to those challenges made within 30 days after entry of an order granting the motion; 5) no schedules or a statement of financial affairs have been filed by the Debtor. About SportsStuff Inc. Based in Omaha, Nebraska, SportsStuff Inc. - http://www.sportsstuff.com/-- offers sports accessories. The company filed for Chapter 11 protection on Dec. 31, 2007 (Bank. D. Neb. Case No. 07-82643). Robert V. Ginn, Esq., at Blackwell Sanders Peper Martin LLP represents the Debtor in its restructuring efforts. When the Debtor filed for protection from their creditors, it listed assets and debts between $1 million and $100 million. TAYLOR CAPITAL: Fitch Chips Issuer Default Rating to BB+ From BBB- ------------------------------------------------------------------ Fitch Ratings downgraded the long- and short-term Issuer Default Ratings of Taylor Capital Group, Inc. and its subsidiary bank Cole Taylor Bank to 'BB+' from 'BBB-' and to 'B' from F3', respectively. At the same time, Fitch has lowered the Individual Rating to 'C' from 'B/C'. Additionally, the Rating Outlook has been revised to Negative from Stable. Fitch has downgraded TAYC's ratings and revised the company's Rating Outlook given deteriorating trends in nonperforming assets and sensitivity of TAYC's business model to weakness in the Chicago metropolitan residential market. While Fitch had anticipated some deterioration given the exposure to residential development lending, NPAs levels at year-end far exceeded Fitch internal estimates and averages for similarly rated peers. Higher levels of NPAs were driven by TAYC's exposure to residential real estate construction loans. Although Fitch recognizes the volatile performance of NPAs due to TAYC's relatively large credit exposures, these levels, as well as TAYC's exposure to the commercial real estate and residential construction markets, elevate the company's risk profile in light of a worsening credit environment. Despite strong reserve levels and a solid capital base, the rate of deterioration in TAYC's level of NPAs and sensitivity to this type of cycle support the downgrade. The deteriorating asset quality pressured earnings for the year. The net loss in 2007 included a one-time, non-cash charge for goodwill impairment. Excluding the goodwill impairment, net income was down considerably for the year due to higher credit costs and margin compression. TAYC's spread income will most likely remain challenged since approximately two-thirds of the loan portfolio floats with Prime and deposits reprice at a slower pace. Fitch expects earnings to remain pressured through 2008 with higher levels of nonaccrual assets and charge-offs. TAYC's capital base and reserve levels provide some support for the credit at the new rating level. Management intends to suspend buybacks and maintain a low corporate dividend payout ratio to help the company accumulate capital and deal with the higher level of distressed assets. Parent company liquidity remains at acceptable levels. Still, the Negative Outlook reflects the potential for further deterioration over the next few quarters as the credit cycle progresses. Fitch expects to revisit the Negative Outlook within the next year. Fitch downgrades these ratings and revised the Rating Outlook to Negative: Taylor Capital Group, Inc. -- Long-term IDR to 'BB+' from 'BBB-'; -- Short-term IDR to 'B' from 'F3'; -- Individual to 'C' from 'B/C'. Cole Taylor Bank -- Long-term IDR to 'BB+' from 'BBB-'; -- Short-term IDR to 'B' from 'F3'; -- Individual to 'C' from 'B/C'; -- Long-term deposits to 'BBB-' from 'BBB'; -- Short-term deposits to 'F3' from 'F2'. TAYC Capital Trust I -- Preferred stock to 'BB' from 'BB+.' In addition, Fitch affirms these: Taylor Capital Group, Inc. Cole Taylor Bank -- Support '5'; -- Support Floor 'NF'. TOUSA INC: Gets Interim Court Nod for $135 Million Financing ----------------------------------------------------------- TOUSA, Inc., has received interim approval from the U.S. Bankruptcy Court for the Southern District of Florida to borrow as much as $135 million from Citigroup Global Markets Inc. to pay normal operating expenses, including employee wages, construction costs, and payments to suppliers. The financing is senior to existing debt and requires final Bankruptcy Court approval. The Hon. John K. Olson also granted the company authority to continue customer programs, including customer warranties; pay employee wages and benefits; establish procedures to pay valid lien claims in the ordinary course of business; and to sell homes free and clear of all liens, with such liens to attach to the proceeds of the sales. "The relief granted by the Court will allow the company to focus on executing its reorganization strategy and, at the same time, provide TOUSA with the liquidity and ability to continue normal operations, including building and selling homes, paying our valued suppliers, and following through on all of our commitments to our customers and business partners," Antonio B. Mon, TOUSA's Chief Executive Officer, said. Headquartered in Hollywood, Florida, TOUSA Inc. (Pink Sheets: TOUS) -- http://www.tousa.com/-- fka Technical Olympic U.S.A. Inc., dba Technical U.S.A., Inc., Engle Homes, Newmark Homes L.P., TOUSA Homes Inc. and Newmark Homes Corp. is a leading homebuilder in the United States, operating in various metropolitan markets in 10 states located in four major geographic regions: Florida, the Mid-Atlantic, Texas, and the West. TOUSA designs, builds, and markets high-quality detached single-family residences, town homes, and condominiums to a diverse group of homebuyers, such as "first-time" homebuyers, "move-up" homebuyers, homebuyers who are relocating to a new city or state, buyers of second or vacation homes, active-adult homebuyers, and homebuyers with grown children who want a smaller home. It also provides financial services to its homebuyers and to others through its subsidiaries, Preferred Home Mortgage Company and Universal Land Title Inc. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on Jan. 29, 2008. (Bankr. S.D. Fla. Case No.: 08-10928). The Debtors have selected M. Natasha Labovitz, Esq., Brian S. Lennon, Esq., Richard M. Cieri, Esq. and Paul M. Basta, Esq. of Kirkland & Ellis LLP and Paul Steven Singerman, Esq. of Berger Singerman to represent them in their restructuring efforts. Lazard Freres & Co. LLC is the Debtors' investment banker and financial advisor. Ernst & Young LLP is selected as the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. TOUSA Inc.'s financial condition as of Sept. 30, 2007, showed total assets of $2,276,567,000 and total debts of $1,767,589,000. ( TOUSA Bankruptcy News; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). TROPICANA ENT: Trustee Files Suit; Demands Payment of Sr. Notes --------------------------------------------------------------- The indenture trustee for Tropicana Entertainment LLC's 9.625% senior subordinated notes due 2014 worth $960 million accelerated the notes and filed a case on Jan. 28, 2008, with the Chancery Court of Delaware, demanding immediate payment, various reports relate. The indenture trustee also wants to bar a sale of the company's assets through the lawsuit, according to the reports. The proceeds of the $960 million notes was used by Bill Yung to acquire Tropicana in 2007. Lawsuit Has No Merit Meanwhile, spokesman for Mr. Yung at Columbia Sussex Corp., told reporters the case filed against them has "no merit." The indenture trustee accuses Mr. Yung of "gross mismanagement" and asks the Court to appoint a receiver to take over Tropicana, reports say. The indenture trustee asserts that Mr. Yung is at fault and caused Tropicana to lose its New Jersey gaming license following workers' complaints on massive lay offs and operational decline. Finance vice president, Derek Haught, told reporters that Tropicana's response to the lawsuit is about to be released. Mohegan Tribe Eyes Buying Tropicana The Mohegan Indian tribe, a casino operator, has indicated interest in buying Tropicana, Wayne Parry writes for the Associated Press, citing sources familiar with the issue. Mohegan Sun Casino's chief operating officer, Jeffrey Hartmann, refused to give AP details but confirmed that the Mohegans are in fact contemplating on buying Tropicana in hopes to expand its business. According to Mr. Hartmann, the Mohegans is seeking "the right opportunity to leverage what" they have started," AP notes. On the other hand, the Mohegans are currently in negotiation to acquire Trump Marina Hotel Casino, AP reveals, citing sources knowledgeable with the issue. One-Year Forbearance Pact with Senior Lenders As reported in the Troubled Company Reporter on Dec. 28, 2007, Tropicana Entertainment LLC's senior lenders have agreed to forbear for up to one year from declaring a default under the senior credit facility arising out of the recent refusal by the New Jersey Casino Control Commission to renew the company's license to operate the Tropicana Casino and Resort in Atlantic City, New Jersey. The forbearance agreement is effective as of Dec. 12, 2007, the date on which the Commission made its decision concerning the Tropicana AC's license. On December 19, the company also confirmed with the trustee overseeing the Tropicana AC that cash flow will continue to be available to the company to service the Tropicana AC's allocated portion of the company's overall debt. About Mohegan Tribal Mohegan Tribal Gaming Authority -- http://mtga.com/-- is an instrumentality of the Mohegan Tribe of Indians of Connecticut, a federally recognized Indian tribe with an approximately 507-acre reservation situated in southeastern Connecticut, adjacent to Uncasville, Connecticut. The Authority operates Mohegan Sun, a gaming and entertainment complex on a 240-acre site on the Tribe's reservation and, through its subsidiary, Downs Racing LP, owns and operates Mohegan Sun at Pocono Downs, a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania and five off-track wagering facilities located elsewhere in Pennsylvania. Mohegan Sun currently operates in an about 3 million square foot facility, which includes the Casino of the Earth, Casino of the Sky, the Shops at Mohegan Sun, a 10,000-seat Arena, a 350-seat Cabaret, meeting and convention space and the about 1,200-room luxury Sky hotel. About Tropicana Entertainment Tropicana Entertainment LLC -- http://www.tropicanacasinos.com/-- is an indirect subsidiary of Tropicana Casinos and Resorts. The company is one of the largest privately-held gaming entertainment providers in the United States. Tropicana Entertainment owns eleven casino properties in eight distinct gaming markets with premier properties in Las Vegas, Nevada and Atlantic City, New Jersey. * * * As reported in the Troubled Company Reporter on Jan. 9, 2008, Moody's continues its review of the ratings for Tropicana Entertainment LLC's and Tropicana Las Vegas Resort & Casino LLC's for possible downgrade. This includes Tropicana LLC's corporate family rating of Caa1 and Speculative Grade Liquidity rating of SGL-4. It also includes Trop Las Vegas' corporate family rating of B3. Although the near term default probability is slightly lower as a result of Tropicana's Dec. 21, 2007 agreement with its bank lenders to, among other things, forbear for up to one year from declaring a default under the senior credit facilities, the company's ratings continue to face downward rating pressure. UNIVERSAL FOOD: Court Decrees $6 Mil. Payment to Secured Lenders ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois ruled that Universal Food and Beverage Co. and its debtor- affiliates must pay $6 million to the secured lenders to cancel its debt of more than $6.5 million, Bill Rochelle of Bloomberg News reports. The Official Committee of Unsecured Creditors appointed in the Debtors' bankruptcy cases, also provided the lenders with a release from lawsuits it planned to file. Universal Food & Beverage Company, Inc., manufactures and markets food and beverage products. The Debtor and its debtor-affiliates in Georgia and Virginia filed for Chapter 11 petitions on Aug. 31, 2007 (Bankr. N.D. Ill. Lead Case No. 07-15955). Barry A Chatz, Esq., and James A. Chatz, Esq., at Arnstein & Lehr LLP, represent the Debtors. Schiff Hardin LLP serves as the Official Committee of Unsecured Creditors' bankruptcy counsel. When they filed for protection from their creditors, the Debtors disclosed $0 assets but an aggregate of more than $20 million in debts. US AIRWAYS: Moves Assume or Reject Deal Hearing to February 21 -------------------------------------------------------------- Reorganized US Airways Inc. and United Air Lines Inc., are continuing their discussions regarding modifications to, and assumption of, the Code Share and Regulatory Cooperation Agreement and the Star Alliance Participation Agreement. In a Court-approved stipulation, the US Airways Group Inc. and United agree that: (a) the hearing on the Reorganized Debtors' request to assume the Agreements is continued to Feb. 21, 2008, at 9:30 a.m.; (b) the deadline for the Reorganized Debtors to assume or reject the Agreements is extended through and including the February Hearing Date; and (c) the time periods referenced in a letter agreement dated Sept. 14, 2005, is extended to the February Hearing Date. Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists $8,805,972,000 in total assets and $8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * US Airways Group Inc.'s $1.6 billion secured credit facility due 2014, currently being syndicated, carries Standard & Poor's Ratings Services 'B' rating. That rating was assigned in March 2007. US AIRWAYS: Names Dion Flannery as US Airways Express President --------------------------------------------------------------- US Airways Inc. has named its vice president of financial analysis, Dion Flannery as president of US Airways Express. Mr. Flannery, 41, succeeds Robert Martens, who has disclosed his retirement from the airline. In his new role, Mr. Flannery will be responsible for oversight of US Airways' regional carriers, Piedmont and PSA Airlines, well as the seven regional affiliates that operate as US Airways Express. He will report to chief operating officer Robert Isom. "Dion is an extremely capable executive whose analytical expertise and airline route planning and scheduling background provide the perfect combination to lead our Express team," said Mr. Isom. "We couldn't be more pleased to expand Dion's role and look forward to his leadership as we work towards improved reliability and convenience for our customers. We are also very grateful to Bob Martens, who came out of retirement to lend his expertise to our airline and establish a firm foundation for our Express division to build upon." Mr. Martens, an airline industry veteran, joined US Airways in 2007 to evaluate strategies and future options for Express, direct the regional subsidiaries Piedmont and PSA, improve performance, coordination and cooperation with Express partners, as well as identify a successor to continue that work longer term. "Bob has achieved what he was brought here to do and he is ready to turn over the reins to a successor," Mr. Isom said. Mr. Martens will remain with US Airways for a transition period to assist Flannery in his new role as vice president in the US Airways organization and president of US Airways Express. The presidents of PSA and Piedmont, Keith Houk and Steve Farrow, respectively, will report to Flannery. Mr. Flannery joined America West Airlines in 2002 as vice president, route planning and scheduling. He became vice president, financial analysis in 2005. He began his career in 1993 at Continental Airlines, where he served in a variety of capacities including senior director, long-range schedule planning and charters. Mr. Flannery earned his Bachelor of Science degree in Advertising from the University of Texas - Austin and his MBA from the University of Houston. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways Inc., Allegheny Airlines Inc., Piedmont Airlines Inc., PSA Airlines Inc., MidAtlantic Airways Inc., US Airways Leasing and Sales Inc., Material Services Company Inc., and Airways Assurance Limited LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists $8,805,972,000 in total assets and $8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. (US Airways Bankruptcy News, Issue No. 154 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * US Airways Group Inc.'s $1.6 billion secured credit facility due 2014, currently being syndicated, carries Standard & Poor's Ratings Services 'B' rating. That rating was assigned in March 2007. US ENERGY: Wants to Hire Hunton & Williams as Bankruptcy Counsel ---------------------------------------------------------------- U.S. Energy Systems Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Southern District of New York to employ Hunton & Williams LLP as their bankruptcy counsel, nunc pro tunc to Jan. 9, 2008. Hunton & Williams will: a) advise the Debtors with respect to their powers and duties as debtors-in-possession in the continued management and operation fo their business and properties; b) attend meetings and negotiate with representatives of creditors and other parties-in-interest; c) take all necessary action to protect and preserve the Debtors' estates; d) prepare on behalf of the Debtors all motions, applications, answers, orders, reports and papers necessary to the administration of the Debtors' estates; e) take any necessary action on behalf of the Debtors to obtain approval of a disclosure statement and confirmation of the Debtors' plan; f) represent the Debtors in connection with obtaining the use of cash collateral and any potential postpetition financing including but not limited to helping the Debtors obtain postpetition loans; g) advise the Debtors in connection with any potential sale of assets; h) appear before the Court and the U.S. Trustee and protect the interests of the Debtors' estate; i) provide non-bankruptcy services to the Debtors to the extent requested by the Debtors; j) consult with the Debtors regarding tax matters; and k) perform all other necessary legal services to the Debtors in connection with their Chapter 11 cases. Peter S. Partee, Esq., a partner at Hunton & Williams, tells the Court that the firm's professionals bill: Professional Hourly Rate ------------ ----------- Enid L. Vernon, Esq. $770 Raul Grable, Esq. $770 Peter S. Partee, Esq. $725 Joseph J. Saltarelli, Esq. $720 Benjamin C. Ackerly, Esq. $650 Richard P. Norton, Esq. $635 Scott H. Bernstein, Esq. $450 Michael G. Wilson, Esq. $400 Jason W. Harbour, Esq. $380 Thomas N. Jamerson, Esq. $280 Henry P. Long, III, Esq. $220 Constance Andonian $210 Matthew A. Lambert $110 Mr. Partee assures the Court that the firm does not have any connection with the Debtors, their creditors, or any other parties-in-interest, and does not represent any interest adverse to the Debtors and their estates. Mr. Partee can be contacted at: Peter S. Partee, Esq. Hunton & Williams LLP 200 Park Avenue New York, NY 10166-0091 Tel: (212) 309-1000 Fax: (212) 309-1100 http://www.hunton.com/ About U.S. Energy Based in Avon, Connecticut, U.S. Energy Systems Inc. (Pink Sheets: USEY) -- http://www.usenergysystems.com/-- owns green power and clean energy and resources. USEY owns and operates energy projects in the United States and United Kingdom that generate electricity, thermal energy and gas production. The company filed for Chapter 11 protection on Jan. 9, 2008 (Bank. S.D.N.Y. Case No. 08-10054). There are 34 affiliates who filed for separate Chapter 11 petitions. The Debtors selected Peter S. Partee, Esq., at Hunton & Williams, L.L.P., as counsel. The Debtor also selected Epiq Bankruptcy Solutions LLC as noticing, claims and balloting agent. When the Debtors filed for protection from their creditors, they listed total assets of $258,200,000 and total debts of $175,300,000. US ENERGY: Wants Court Nod on Jefferies as Financial Advisor ------------------------------------------------------------ U.S. Energy Systems Inc. and its debtor-affiliates seek authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Jefferies & Company, Inc. as their financial advisor, nunc pro tunc to Jan. 9, 2008. Jefferies & Company will: a) provide technical services as by assisting the Debtors with reviewing their gas assets in the U.K., which outcome will be used to formulate the restructuring; b) provide advice and assistance to the Debtors in connection with analyzing, structuring, negotiating, effecting, and acting as exclusive financial advisor to the Debtors in connection with any potential restructuring of the Debtors' outstanding indebtedness; c) provide on an exclusive basis advice and assistance to the Debtors in connection with working in any financing transaction pursuant to a rights offering or other offering of public and private securities; d) assist and advise the Debtors on an exclusive basis in connection with working and identifying potential acquirers relating with the sale of the Debtor-subsidiary's stock or assets; e) perform the following financial advisory services: -- becoming familiar with and analyzing the business, operations, properties, financial condition and prospects of the Debtor; -- advising the Debtors on the current state of the "restructuring market"; -- assisting and advising the Debtors in developing a general strategy for accomplishing the restructuring; -- assisting and advising the Debtors in implementing a restructuring on behalf of the Debtors; -- assisting and advising the Debtors in evaluating and analyzing a restructuring including the value of securities; and -- rendering other financial services as necessary and appropriate in the Debtors cases. Thomas C. Carlson, a managing director at Jefferies & Company, tells the Court that the companies fee structure is comparable to those generally charged by financial advisory and investment banking firms. Prior to the date of bankruptcy, Jefferies received $700,000 in fees and $26,177 in expenses from the Debtors for prepetition services rendered and expenses incurred in advising the Debtors. Mr. Carlson assures the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About U.S. Energy Based in Avon, Connecticut, U.S. Energy Systems Inc. (Pink Sheets: USEY) -- http://www.usenergysystems.com/-- owns green power and clean energy and resources. USEY owns and operates energy projects in the United States and United Kingdom that generate electricity, thermal energy and gas production. The company filed for Chapter 11 protection on Jan. 9, 2008 (Bank. S.D.N.Y. Case No. 08-10054). There are 34 affiliates who filed for separate Chapter 11 petitions. The Debtors selected Peter S. Partee, Esq., at Hunton & Williams, L.L.P., as counsel. The Debtor also selected Epiq Bankruptcy Solutions LLC as noticing, claims and balloting agent. When the Debtors filed for protection from their creditors, they listed total assets of $258,200,000 and total debts of $175,300,000. USA INVESTMENT: Plan Confirmation Hearing Set on Monday ------------------------------------------------------- The Hon. Linda Riegle of the U.S. Bankruptcy Court for the District of Nevada will convene a hearing on Monday, Feb. 4, 2008, to consider the confirmation of U.S.A. Investment Partners LLC's Chapter 11 plan providing secured creditors 100% payment of claims, Bill Rochelle of Bloomberg News reports. Mr. Rochelle relates that although the former owner of Hotel Zoso told the Court that it owed secured creditors $19.1 million, secured creditors insisted that they lent a total of $24.4 million to USA Investment. Hotel Zoso, a luxury, boutique hotel in Palm Springs, California, was operated by the Debtor's Chapter 11 trustee and was sold in November for $25.1 million to American Property Hospitality Management LLC, Mr. Rochelle discloses. Under the plan, 150 short-term, secured investors of the hotel will get all of the principal and interest they were owed at $22.4 million, according to the Las Vegas Review-Journal. Payment to unsecured creditors is contingent with the amount of claims to secured creditors, Mr. Rochelle discloses. The higher the secured claims, the less of a guarantee that unsecured claims will be paid. If the secured claims is of a lower amount, unsecured creditors with $27 million in claims will recover 30% of their claims. U.S.A. Investment Partners, LLC, invests and develops real estate. On April 4, 2007, creditors filed an involuntary chapter 11 petition against the company (Bankr. D. Nev. Case No. 07-11821). Lisa M. Poulin was appointed as interim chapter 11 trustee. Brigid M. Higgins, Esq., Eric Van, Esq., Gerald M. Gordon, Esq., Gregory E. Garman, Esq., and Talitha B. Gray, Esq., at Gordon & Silver, Ltd., represents the chapter 11 trustee. USG CORP: Posts $28 Million Net Loss in for Fourth Qtr. 2007 ------------------------------------------------------------ USG Corporation reported fourth quarter 2007 net sales of $1.2 billion and a net loss of $28 million. For the same period a year ago, the corporation recorded net sales of $1.3 billion and net earnings of $100 million. The corporation's consolidated fourth quarter 2007 results included restructuring and impairment charges of $8 million associated with salaried workforce reductions, shutdown costs for manufacturing facilities and asset impairment charges taken in response to current market conditions. The effective tax benefit rate for the fourth quarter of 2007 was 51.8% versus a tax rate of 37.1% in the fourth quarter of 2006. For the full year of 2007, the effective tax rate was 12.2% versus 39.5% for all of 2006. The effective tax rate in the fourth quarter of 2007 benefited primarily from a higher proportion of income in lower-taxed non- U.S. jurisdictions compared to 2006 and from the reversal of valuation allowances for certain prior-year net operating loss carryovers in the company's Worldwide Ceilings and Canadian businesses. USG reported consolidated net sales of $5.2 billion and net earnings of $76 million for the full year of 2007. Diluted earnings per share for the year were $0.78. Consolidated net earnings for 2007 included restructuring and impairment charges of $26 million associated with salaried workforce reductions, shutdown costs for manufacturing facilities and asset impairment charges. The allocation of these charges was approximately $15 million for United States Gypsum Company, $5 million for Corporate, $3 million for the gypsum division of CGC Inc. and $3 million for USG Interiors, Inc., USG International and L&W Supply Corporation combined. For all of 2006, the corporation reported net sales of $5.8 billion and net earnings of $288 million, or $4.33 per diluted share. The corporation's 2006 consolidated results included a pretax charge of $528 million for post-petition interest and fees paid under USG's plan of reorganization. Consolidated 2006 net earnings also included a $44 million reversal of the reserve for asbestos-related liabilities. "Our financial results for the fourth quarter and the full year reflect the ongoing decline of the U.S. housing market," said William C. Foote, Chairman and CEO. "High inventories of unsold homes, tighter mortgage lending standards and a decline in residential repair and remodeling activity caused wallboard shipments and prices to fall throughout 2007, which in turn had a significant impact on net sales and profits. We had anticipated what has become a multi-year downturn in the housing market," Foote continued. "Over a year ago, we began aggressively removing excess manufacturing capacity and cutting overhead expenses and reducing total employment. During the last 18 months, we have curtailed or closed 3.3 billion square feet of wallboard manufacturing capacity and eliminated about 1,250 positions. In the second half of 2007, we cut the level of overhead expenses by $24 million compared to the first half of the year. We continue to take steps to adjust our operations to market conditions. In December, we shut down the paper mill at our Jacksonville plant and we recently announced plans to close our 80-year-old Boston wallboard line in March. "From an operational, safety and customer satisfaction perspective, our businesses are performing exceptionally well," Foote added. "Our safety performance in 2007 established a new all-time company record in our manufacturing facilities. Additionally, manufacturing efficiency metrics are excellent, and the results of our recently completed customer satisfaction survey are outstanding. We are managing those things that are within our control very well." Commenting further, Foote said, "Today, we remain keenly focused on market conditions, and we will continue to make further adjustments to our operations as needed. Over the long term, we plan to continue replacing older, less-efficient manufacturing assets with new, low-cost assets. By doing so, we will further enhance our customer service leadership, product innovation and low delivered cost status and position the company to resume strong growth and profitability when the market rebounds." About USG Corporation Based in Chicago, Ill., USG Corporation -- http://www.usg.com/-- through its subsidiaries, manufactures and distributes building materials producing a wide range of products for use in new residential, new nonresidential and repair and remodel construction, as well as products used in certain industrial processes. The company filed for chapter 11 protection on June 25, 2001 (Bankr. Del. Case No. 01-02094). David G. Heiman, Esq., Gus Kallergis, Esq., Brad B. Erens, Esq., Michelle M. Harner, Esq., Mark A. Cody, Esq., and Daniel B. Prieto, Esq., at Jones Day represent the Debtors in their restructuring efforts. Lewis Kruger, Esq., Kenneth Pasquale, Esq., and Denise Wildes, Esq., represent the Official Committee of Unsecured Creditors. Elihu Inselbuch, Esq., and peter Van N. Lockwood, Esq., at Caplin & Drysdale, Chartered, represent the Official Committee of Asbestos Personal Injury Claimants. Martin J. Bienenstock, Esq., Judy G. Z. Liu, Esq., Ralph I. Miller, Esq., and David A. Hickerson, Esq., at Weil Gotshal & Manges LLP represent the Statutory Committee of Equity Security Holders. Dean M. Trafelet is the Future Claimants Representative. Michael J. Crames, Esq., and Andrew A. Kress, Esq., at Kaye Scholer, LLP, represent the Future Claimants Representative. Scott Baena, Esq., and Jay Sakalo, Esq., at Bilzen Sumberg Baena Price & Axelrod LLP, represent the Asbestos Property Damage Claimants Committee. When the Debtors filed for protection from their creditors, they listed $3,252,000,000 in assets and $2,739,000,000 in debts. The Debtors emerged from bankruptcy protection on June 20, 2006. VENTAS INC: Agrees to Sell 3.9 Million Shares to UBS Investment --------------------------------------------------------------- Ventas Inc. has agreed to sell 3.9 million shares of its common stock to UBS Investment Bank, as sole underwriter, in an underwritten public offering. The company has also granted UBS Investment Bank a 30-day option to purchase up to an additional 585,000 shares of common stock to cover overallotments, if any. Gross proceeds from the offering, before deducting the underwriting discount and expenses, are expected to be approximately $168.6 million or $193.9 million if the underwriter's overallotment option is exercised in full. The company will use the net proceeds to repay indebtedness outstanding under its revolving credit facility and for other general corporate purposes, including acquisitions. Completion of the offering is subject to customary closing conditions. The shares of common stock are being offered under the company's existing shelf registration statement, which became automatically effective upon filing with the Securities and Exchange Commission. A prospectus supplement and accompanying prospectus describing the terms of the offering will be filed with the Securities and Exchange Commission. When available, copies of the prospectus supplement and the accompanying prospectus may be obtained from: UBS Investment Bank Attention: Prospectus Department 299 Park Avenue New York, NY 10171 Tel (888) 827-7275 About Ventas Inc Headquartered in Louisville, Kentucky, Ventas Inc. (NYSE:VTR) -- http://www.ventasreit.com/-- is a healthcare real estate investment trust that is the nation's largest owner of seniors housing and long-term care assets. Its portfolio of properties located in 43 states two Canadian provinces includes independent and assisted living facilities, skilled nursing facilities, hospitals and medical office buildings. * * * Moody's Investor Services placed the company's senior unsecured rating at Ba1, in September 2007, which still holds to date. The outlook is stable. Standard & Poor's placed the company's long-term foreign and local issuer credits at BB+ in December 2005. The ratings still hold to date. the outlook is positive. VICORP RESTAURANTS: To Delay Filing of 2007 Annual Report --------------------------------------------------------- VICORP Restaurants Inc. disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that it will delay the filing of its Form 10-K for the year ended Nov. 1, 2007. The company said that delay is due to VICORP's need to complete its evaluation of its intangible asset carrying values under SFAS No. 142, "Goodwill and Other Intangible Assets," and its application to the company under generally accepted accounting principles. The company expects to record an impairment charge. The company stated that lenders participating in VICORP's senior credit facility have agreed to extend the time period for VICORP to deliver financial information required under the senior credit facility. In addition, the company anticipates that it will file its Form 10-K on or before Feb. 15, 2008. The company's press release and quarterly conference call will be scheduled to take place shortly after the filing of the 10-K. About VICORP Restaurants VICORP Restaurants Inc., with corporate headquarters in Denver, Colorado, operates and franchises family-style restaurants under the brand names Village Inn and Baker's Square. As of July 12, 2007, the company operated 170 Village Inn restaurants and 146 Bakers Square restaurants, and franchisees operated 93 Village Inn restaurants. Revenues for the last 23 months were about $478 million. VICORP RESTAURANTS: S&P Slashes Rating to CCC on 10-K Filing Delay ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit rating on the Denver-based VICORP Restaurants Inc., including the corporate credit rating, to 'CCC' from 'CCC+'. The outlook is developing. The rating action is based on the company's delay in filing its 10-K to finish an evaluation of its intangible asset carrying values. VICORP indicated that it expects to record an impairment charge, which means that the fair value of its assets has diminished and likely indicative that operating performance remained weak in company's fourth quarter. "Moreover, the factors contributing to poor trends at VICORP, namely declining customer spending and higher labor and commodity costs, did not abate in the quarter," said Standard & Poor's credit analyst Charles Pinson-Rose, "and continued poor performance likely worsened the company's already weak liquidity." WELLS FARGO: Fitch Rates Eight Series 2008-1 Certificates at Low-B ------------------------------------------------------------------ Wells Fargo mortgage pass-through certificates, series 2008-1, are rated by Fitch Ratings: Group I: -- $728,860,351 classes I-A-1 through I-A-3, I-A-R and I-A-PO 'AAA' (senior certificates); -- $17,490,000 class I-B-1 'AA'; -- $4,943,000 class I-B-2 'A'; -- $1,901,000 class I-B-3 'BBB'; -- $3,041,000 class I-B-4 'BB'; -- $1,141,000 class I-B-5 'B'. Group II: -- $293,768,248 classes II-A-1 through II-A-6 and II-A-PO 'AAA' (senior certificates); -- $5,188,000 class II-B-1 'AA'; -- $2,137,000 class II-B-2 'A'; -- $763,000 class II-B-3 'BBB'; -- $1,526,000 class II-B-4 'BB'; -- $458,000 class II-B-5 'B'. Group III: -- $195,607,651 classes III-A-1, III-A-2 and III-A-PO 'AAA' (senior certificates); -- $3,312,000 class III-B-1 'AA'; -- $703,000 class III-B-2 'A'; -- $301,000 class III-B-3 'BBB'; -- $401,000 class III-B-4 'BB'; -- $100,000 class III-B-5 'B'. Group IV: -- $268,886,375 classes IV-A-1, IV-A-2 and IV-A-PO 'AAA' (senior certificates); -- $4,009,000 class IV-B-1 'AA'; -- $1,245,000 class IV-B-2 'A'; -- $553,000 class IV-B-3 'BBB'; -- $829,000 class IV-B-4 'BB'; -- $276,000 class IV-B-5 'B'. The 'AAA' ratings on the Group I senior certificates reflect the 4.15% subordination provided by the 2.30% class I-B-1, the 0.65% class I-B-2, the 0.25% class I-B-3, the 0.40% privately offered class I-B-4, the 0.15% privately offered class I-B-5, and the 0.40% privately offered class I-B-6. The ratings on the class I- B-1, I-B-2, I-B-3, I-B-4, and I-B-5 certificates are based on their respective subordination. Class I-B-6 is not rated by Fitch. The 'AAA' ratings on the Group II senior certificates reflect the 3.75% subordination provided by the 1.70% class II-B-1, the 0.70% class II-B-2, the 0.25% class II-B-3, the 0.50% privately offered class II-B-4, the 0.15% privately offered class II-B-5, and the 0.45% privately offered class II-B-6. Class II-B-6 is not rated by Fitch. The 'AAA' ratings on the Group III senior certificates reflect the 2.55% subordination provided by the 1.65% class III-B-1, the 0.35% class III-B-2, the 0.15% class III-B-3, the 0.20% privately offered class III-B-4, the 0.05% privately offered class III-B-5, and the 0.15% privately offered class III-B-6. Class III-B-6 is not rated by Fitch. The 'AAA' ratings on the Group IV senior certificates reflect the 2.75% subordination provided by the 1.45% class IV-B-1, the 0.45% class IV-B-2, the 0.20% class IV-B-3, the 0.30% privately offered class IV-B-4, the 0.10% privately offered class IV-B-5, and the 0.25% privately offered class IV-B-6. Class IV-B-6 is not rated by Fitch. Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures, and the primary servicing capabilities of Wells Fargo Bank, N.A.; rated 'RPS1' by Fitch). This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. The class I-A-2, I-A-3, II-A-3, and II-A-4 are exchangeable REMIC certificates. The classes II-A-1, II-A-5 and II-A-6 are exchangeable certificates. The remainder of the classes are regular certificates. Group I consists of 1,148 fixed interest rate, first lien mortgage loans, with an original weighted average term to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $760,418,555 as of Jan. 1, 2008 (the cut-off date), and the average principal balance is $662,386. The weighted average original loan-to-value ratio of the loan pool is approximately 73.25%. The weighted average coupon of the mortgage loans is 6.778%, and the weighted average FICO score is 745. The states that represent the largest geographic concentration are California (29.93%), New York (10.79%), Virginia (6.51%), and New Jersey (5.06%). All other states represent less than 5% of the outstanding balance of the pool. Group II consists of 457 fixed interest rate, first lien mortgage loans, with an original WAM of approximately 30 years. The aggregate unpaid principal balance of the pool is $305,214,034 as of Jan. 1, 2008 (the cut-off date), and the average principal balance is $667,864. The weighted average OLTV of the loan pool is approximately 72.34%. The WAC of the mortgage loans is 6.766%, and the weighted average FICO score is 744. The states that represent the largest geographic concentration are California (34.03%), New York (9.35%), Virginia (6.39%), and Florida (5.04%). All other states represent less than 5% of the outstanding balance of the pool. Group III consists of 296 fixed interest rate, first lien mortgage loans, with an original WAM of approximately 15 years. The aggregate unpaid principal balance of the pool is $200,726,649 as of Jan. 1, 2008 (the cut-off date), and the average principal balance is $678,131. The weighted average OLTV of the loan pool is approximately 61.46%. The WAC of the mortgage loans is 6.271%, and the weighted average FICO score is 759. The states that represent the largest geographic concentration are California (23.32%), New York (10.13%), Florida (5.53%), Texas (5.53%), Illinois (5.02%), and Colorado (5.01%). All other states represent less than 5% of the outstanding balance of the pool. Group IV consists of 425 fixed interest rate, first lien mortgage loans, with an original WAM of approximately 30 years. All of the mortgage loans in Group IV were made in connection with the relocation of employees of various corporate employers. The aggregate unpaid principal balance of the pool is $276,490,580 as of Jan. 1, 2008 (the cut-off date), and the average principal balance is $650,566. The weighted average OLTV of the loan pool is approximately 75.10%. The WAC of the mortgage loans is 6.372%, and the weighted average FICO score is 755. The states that represent the largest geographic concentration are California (25.22%), New York (6.32%), New Jersey (6.18%), Texas (5.71%), and Virginia (5.64%). All other states represent less than 5% of the outstanding balance of the pool. All of the mortgage loans were generally originated in conformity with underwriting standards of WFB. WFB sold the loans to Wells Fargo Asset Securities Corporation, a special purpose corporation, who deposited the loans into the trust. The trust issued the certificates in exchange for the mortgage loans. WFB will act as servicer and custodian, and HSBC Bank USA, National Association will act as trustee. Elections will be made to treat the trust as two separate real estate mortgage investment conduits for federal income tax purposes. * John Finnegan Joins Chadbourne & Parke in New York as Partner --------------------------------------------------------------- John Finnegan has joined Chadbourne & Parke LLP as a partner in the insurance and reinsurance practice, based in the New York office. Mr. Finnegan, 50, joined Chadbourne from the firm of Cadwalader, Wickersham & Taft LLP in New York, where he had been a partner with a practice emphasizing dispute resolution. Mr. Finnegan strengthens a practice in the insurance and reinsurance field. The insurance and reinsurance team meets clients' varying needs through its depth of experience, geographic reach, and ability to draw from other disciplines within the Firm, including bankruptcy, corporate and tax practitioners. The practice achieved high rankings in a 2007 survey of law firms by Reactions, a London-based monthly magazine covering the insurance and reinsurance industries. Chadbourne was recognized in several categories such as reinsurance, litigation and dispute management, and insolvency, including run- offs. "John is an outstanding addition to our reinsurance practice, which already has one of the deepest and most experienced groups of lawyers in both the U.S. and England," David Raim, co-chair of Chadbourne's insurance and reinsurance department, said. "A number of our reinsurance partners are admitted to the New York Bar and it will be helpful to have John resident in the New York office." "I have been on the opposite side of John in numerous arbitrations, and I know him as a tough but fair advocate," Mr. Raim added. "I am very pleased finally to have him on our side." "John adds solid insights and a strong track record to Chadbourne," Charles O'Neill, managing partner, said. "I'm pleased to welcome him to the partnership." In his career, Mr. Finnegan has obtained numerous successes in reinsurance arbitrations and litigations. For example, he has obtained rescission or comparable relief on several occasions for his reinsurer clients, has recovered substantial sums for his cedent clients and has successfully defended several financial reinsurance transactions against attacks that they did not transfer adequate risk. Mr. Finnegan concentrates his legal work on reinsurance dispute resolution and litigation. In addition, he has significant experience in such areas as the formation of reinsurance sidecars; assisting distressed companies or companies with run-off books; counseling companies that are targets of investigations; and handling rate and policy form filings. He holds a B.A. degree in political science and accounting from Fordham University and a J.D. from St. John's University School of Law, where he was Articles Editor of St. John's Law Review. About Chadbourne & Parke LLP Headquartered in New York City, Chadbourne & Parke LLP -- http://www.chadbourne.com/-- provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia and the CIS, the Middle East and Latin America. The firm has offices in New York, Washington, DC, Los Angeles, Houston, London, Moscow, St. Petersburg, Warsaw, Kyiv, Almaty, Dubai and Beijing. * Marsh & McLennan Appoints Brian Duperreault as President and CEO ------------------------------------------------------------------ Marsh & McLennan Companies Inc. disclosed the appointment of Brian Duperreault as president and chief executive officer, effective immediately. "Throughout his career, including 10 years as a chief executive officer, Brian Duperreault has proven his ability to produce results and create shareholder value," Stephen R. Hardis, chairman of MMC's board of directors said. "We are delighted to welcome him to MMC." "I am honored to become the chief executive officer of MMC, a company that comprises several of the world's greatest brands in risk & insurance services and consulting," Mr. Duperreault said. "I look forward to working with the company's talented executives." "This is an institution with unrivaled resources and capabilities," Mr. Duperreault added. "My mission is to capitalize on the strength of MMC's operating companies to deliver value to clients, employees and shareholders." From 1994 to 2004, Mr. Duperreault served as chief executive officer of ACE Limited, the Bermuda-based insurer MMC helped found in 1985. He then served as chairman of the board from 2004 to 2007. ACE's net premiums are currently $12 billion. Under his leadership, ACE grew from a insurance specialist into a multi-line commercial enterprise. He presided over significant organic growth as well as the acquisition of several businesses, including the 1999 acquisition of Cigna's property and casualty business. During his tenure at ACE, the company's market capitalization grew from $1.1 billion to approximately $19 billion presently. Prior to ACE, Mr. Duperreault was with American International Group for more than 20 years, holding numerous positions and eventually rising to become executive vice president of AIG Foreign General Insurance and chairman and chief executive of AIG's American International Underwriters, which comprises all of AIG's non-U.S. commercial business. About Marsh & McLennan Companies Based in New York, New York, Marsh & McLennan Companies Inc. (NYSE:MMC) -- http://www.mmc.com/-- is a professional services firm. MMC operates in four segments: risk and insurance services, which includes risk management activities, as well as insurance and reinsurance broking and services; risk consulting and technology, which includes risk consulting and related investigative, quantitative, intelligence, financial, security and technology services; consulting, which includes human resource consulting and related services, and specialized management and economic consulting services, and investment m,anagement, which includes investment management for both individual and institutional investors. During the year ended Dec. 31, 2006, the company made 16 acquisitions. In December 2006, MMC sold Kroll Security International. In September 2006, the company sold the assets of Price Forbes, its United Kingdom-based insurance wholesale operation. In August 2007, MMC completed the sale of Putnam Investments to Great-West Lifeco Inc. * Michael G. Cortina Joins SmithAmundsen as Partner --------------------------------------------------- Michael G. Cortina has joined SmithAmundsen LLC's Woodstock office in Illinois as a partner in the firm's Financial Services Practice Group. Prior to joining SmithAmundsen, Michael was the principal of The Law Office of Michael G. Cortina located in the Chicago suburb of Crystal Lake, Illinois. Michael focuses his practice on commercial, banking, bankruptcy, and creditor's rights law. He has extensive experience representing banks in various types of litigation including uniform commercial code, automobile dealership cases, personal guarantees, foreclosures, check alterations, fraud, replevins, collections, bankruptcy adversary proceedings, and priority disputes. "Michael brings an exceptional depth of knowledge to our firm that will expand and solidify our standing in the banking and finance industries," Larry Schechtman, managing partner, says. "I am positive our clients will find his skills and experience a wonderful addition to the firm and we are confident his clients will greatly benefit from the enhanced services and experience available from SmithAmundsen." Michael received a B.A. from Monmouth College and a J.D. from Northern Illinois University. He is admitted to practice in the State of Illinois, the federal courts in the Northern District of Illinois (Eastern and western divisions), and the Eastern District of Wisconsin. He was also listed in Super Lawyers(R) Rising Stars for his work in Banking Law. About SmithAmundsen LLC Headquartered in Chicago, Illinois, SmithAmundsen LLC -- http://www.salawus.com/-- has grown to more than 110 attorneys with offices in Chicago, Rockford, St. Charles, Waukegan, and Woodstock, Illinois and Milwaukee, Wisconsin. SmithAmundsen's attorneys offer expertise in a broad range of practice areas. As one of Chicago's premier litigation firms, SmithAmundsen's success is built upon a foundation of integrity, professionalism, and a commitment to exceeding client expectations. * William Yonge Joins Proskauer Rose as Partner in London --------------------------------------------------------- William Yonge, an experienced securities regulation and funds lawyer, has joined Proskauer Rose LLP's London office as a partner. Formerly a partner at McDermott Will & Emery UK LLP, he advises fund managers, corporate financiers, investment funds, private equity firms, corporations and LLPs on all aspects of financial services regulation, securities law, and EU financial services directives. Mr. Yonge also advises on the structuring, establishment, and marketing of a range of investment fund types including offshore hedge funds, funds of funds, private equity funds, UCITS, and UK-authorised funds well as on the legal and commercial issues concerned with ISDAs and prime brokerage. "William's regulatory experience will be invaluable to us as we grow our London-based fund formation, structured finance, and corporate capabilities," Matthew Hudson, head of Proskauer's London office, said. "In particular, Financial Services Authority advice is vital for our growing client base of private equity and hedge clients. We look forward to integrating his skills into our quickly expanding platform and utilizing him as a catalyst for continued growth." Mr. Yonge was also a lawyer at Dechert and SJ Berwin & Co. Prior to entering private practice, he was an in-house lawyer at the Investment Management Regulatory Organisation and the Securities and Investments Board. He received his B.A. in law from the University of Durham. The lawyers in Proskauer's London office advise major U.K. and international companies and financial institutions, while drawing upon the resources of the firm's offices in the Americas and France. The office has a strong sector specialty within the alternative asset industry, advising managers and investors on all aspects of private equity, venture capital, debt, hedge, and other alternative asset classes. The office also advises investors and managers on acquisitions, investments, financings and exits of portfolio companies, offering a complete one-stop service to the alternative asset industry and other clients. The opening of Proskauer's London office followed a number of other additions to the firm's corporate and transactional capabilities including the opening of an office in Sao Paulo and the additions of noted private equity fund formation, transaction, and taxation lawyers Daniel Schmidt and Olivier Dumas in the Paris office; Trevor Chaplick, a noted corporate and transactional lawyer and former head of the Washington, D.C. office of Wilson Sonsini, who joined Proskauer as co-head of its Washington, D.C. office; veteran real estate finance lawyers Louis Eatman, Douglas Frank, who joined as partners in Los Angeles, and Andrea Ascher, who joined as a partner in New York; and capital markets lawyer Stuart Bressman and hedge fund lawyer Timothy Clark, who joined as partners in New York. About Proskauer Rose Headquartered in New York City, Proskauer Rose LLP -- http://www.proskauer.com/-- is a law firms that provides a variety of legal services to clients throughout the United States and around the world from offices in New York, Los Angeles, Washington, D.C., Boston, Boca Raton, Newark, New Orleans, Paris and Sao Paulo. Founded in 1875, the firm has experience in all areas of practice important to businesses and individuals, including corporate finance, mergers and acquisitions, general commercial litigation, private equity and fund formation, patent and intellectual property litigation and prosecution, labor and employment law, real estate transactions, bankruptcy and reorganizations, trusts and estates, and taxation. Its clients span industries including chemicals, entertainment, financial services, health care, information technology, insurance, internet, lodging and gaming, manufacturing, media and communications, real estate investment, pharmaceuticals, sports, and transportation. * Key Drivers FTI Consulting Says Will Affect 2008 Restructurings ----------------------------------------------------------------- FTI Consulting Inc. has identified several key drivers that it expects will affect corporate borrowers and restructurings in 2008. The key drivers identified by FTI Corporate Finance, which was recently rated number one on The Deal's League Table for Crisis Management firms, are as follows: The credit markets will remain tight. Credit markets are likely to remain highly restrictive through at least the first half of the year. FTI Corporate Finance sees financing conditions worsening across most sectors as companies experiencing covenant and similar problems will be unable to easily refinance themselves out of existing facilities without incurring substantial costs and certainly more restrictive covenants. In addition, credit markets will force companies and lenders to the table more often as borrowers experience covenant or liquidity issues and lenders express greater concern over protecting their positions. "Companies below investment grade seeking additional financing will experience greater difficulties refinancing existing facilities and in dealing with covenant breaches," said DeLain Gray, senior managing director and leader of FTI Corporate Finance. "These huge issues facing corporate borrowers are dramatically changing the borrower-lender relationship, with borrowers facing greater scrutiny and oversight, and are challenging the ability of companies to effectuate restructurings that require additional financings," Mr. Gray added. New and amended loans are calling for greater covenants and fees. Lenders today are looking to shore up covenant-lite loans where possible with additional covenants that bring lenders and borrowers together sooner to discuss unanticipated under performance. New financings are adding greater covenants for lenders to monitor performance. "We are seeing financing instruments return to a more traditional model where lenders incorporate more restrictive safeguards," said Randall Eisenberg, senior managing director, FTI Corporate Finance. "To both monitor and protect their investments, lenders are establishing triggers that enable them to be at the table with borrowers earlier when there are signs of underperformance," Mr. Eisenberg added. Housing woes will be unrelenting. The US housing slump is expected to continue to adversely affect the homebuilding, construction materials, home furnishings and consumer finance sectors. As the New Year starts, the slump shows no sign of bottoming out. Even if homebuyers were to stage an unexpected rally in 2008, FTI believes the substantial overhang of homes for sale is a major impediment to a recovery in those industries dependent upon new home construction. For the foreseeable future, supply is expected to remain far above any level that could be considered normal by historical standards. Don't count on US Consumers in 2008. There is recent evidence that payment delinquencies have begun to grow on consumer non- mortgage debt, such as auto loans and student loans. The growth rate of credit card debt has accelerated into the high single- digit range, which is unsustainable since it substantially exceeds the rate of growth of household income. It appears that as consumers look to pay down debt, incremental spending on furniture, jewelry and other home goods will slow in 2008. The stock market valuations of many retailers appear to already reflect expectations of a consumer-led recession. "Until there is solid evidence that the bulk of subprime-related write downs is behind us, and that credit quality deterioration and value impairment hasn't spread to other types of consumer loans, the primary and secondary debt markets will remain circumspect - perhaps overly cautious - which in return will cause a ripple effect across many consumer related industries," said Ron Greenspan, senior managing director, FTI Corporate Finance. "We are not yet past the bad news about bad loans. A continued cautious posture by lenders could further weaken an already listing US economy," Mr. Greenspan added. Automotive industry will remain in a slump. As we enter 2008 there is a growing consensus that the US automotive industry, in particular parts suppliers, will see a new round of casualties and further consolidation. With US light vehicle sales in 2008 now projected to fall below 16 million units for the first time since 1998, vehicle production is on schedule for its lowest unit output since 1993. Ethanol runs out of gas. Recently the ethanol industry has run into problems with the high cost of raw materials and significant new supply outstripping demand. The price of corn used to make ethanol has soared, while purchases of ethanol by oil refiners to blend into gasoline have flattened. US ethanol refiners ramped up production so fast that they can now produce 7.2 billion gallons of ethanol a year, just shy of the federal mandate of 7.5 billion gallons by 2012. Yet there are not enough takers for so much supply. Making matters worse, the industry is still expanding with an estimated 6 billion gallons of additional ethanol capacity coming online as plants now under construction are completed. About FTI Consulting FTI Consulting (NYSE: FCN) -- http://www.fticonsulting.com/-- is a business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 2,400 professionals located in most major business centers in the world, the company works closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. * BOOK REVIEW: Bankruptcy Investing: How to Profit from Distressed Companies (Revised Edition) ------------------------------------------------------------------ Author: Ben Branch and Hugh Ray Publisher: Beard Books Paperback: 344 pages List Price: $39.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587981211/internetbankrupt The book Bankruptcy Investing: How to Profit from Distressed Companies, is written by Ben Branch and Hugh Ray. Corporate bankruptcies are at an all-time high, and this trend is likely to continue. Bankruptcy Investing introduces investors to the risky but lucrative opportunities to invest in the securities of troubled companies. Every area of this exciting field is described in complete detail. Real-world examples illustrate the explanations. Companies in distress may go through an informal or formal workout of problems, or they may enter Chapter 11 or Chapter 7 bankruptcy. The investment implications for the securities of firms in each of these stages are considered in full. Everything the investor needs to know is contained in this book. The authors show why it can be smart to invest in troubled companies. Whether you are a savvy investor or experienced fund manager (or aspire to be one), Bankruptcy Investing introduces you to the risky but lucrative opportunities for investing in the securities of troubled companies. This timely new book describes in detail the rules of the game and how to apply them to pick the winners. The authors, both experts in the legal and financial aspects of bankruptcy investing, explain everything you need to know about investing in distressed companies, including estimating bankruptcy values, how to use timing to your advantage, quantitative techniques to minimize risks, evaluating available data, characteristics of various types of short-term and long-term debt instruments, investment strategies, and sources of additional information. You'll fully understand all the implications of investing in the securities of firms in all stages of financial distress--from informal or formal workouts to Chapter 11 or Chapter 7 bankruptcy- -as well as investing in both debt and equity securities. Real-world examples illustrate how you can profit from investing in troubled companies and what risks are incurred. An extensive glossary defines legal, economic and financial terms. Bankruptcy Investing translates the often-confusing lexicon of bankruptcy into a profitable investment program that you can implement immediately. You too will discover an exciting way to find new investment winners. Two financial experts guide you through the risky but lucrative investment opportunities available in troubled companies. Whether your interests are informal or formal workouts, Chapter 11 or Chapter 7 bankruptcies, debt or equity securities, this book will explain everything you need to know about investing in distressed corporations. Topics include estimating bankruptcy values, how to use timing to your advantage, quantitative techniques to minimize risk, evaluating available data, the characteristics of various types of short-term and long-term debt instruments, and investment strategies. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Joseph Medel C. Martirez, Philline P. Reluya, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***