T R O U B L E D   C O M P A N Y   R E P O R T E R

            Saturday, February 9, 2008, Vol. 12, No. 34

                             Headlines


AMERICAN HOME: AHMHI Files Operating Report for September 2007
AMERICAN HOME: AHMV Files Operating Report for September 2007
AMERICAN HOME: Great Oak Files Operating Report for September 2007
AMERICAN HOME: Homegate Files Operating Report for September 2007
AVADO BRANDS: Incurs $11,226,700 Net Loss in December 2007

DELPHI CORPORATION: Incurs $964 Million Net Loss in December 2007
DUNMORE HOME: Posts $490,271 Net Loss in Month Ended November 30
DUNMORE HOME: Posts $1,150,136 Net Loss in Month Ended December 31
HANCOCK FABRICS: Posts $1,569,000 Net Loss in Month Ended Jan. 5
HYDRAULIC TECH: Posts December 2007 Net Loss of $17,020,529

KITTY HAWK: Posts $236,951 Net Loss in December 2007
KITTY HAWK: AirCargo Posts $1,078,842 Net Loss in December 2007
KITTY HAWK: Cargo Posts $434,543 Net Loss in December 2007
KITTY HAWK: Ground Posts $987,944 Net Loss in December 2007
KITTY HAWK: KH Ground Posts $987,944 Net Loss in December 2007

LEVITZ FURNITURE: Has $70,951,000 Net Loss in Month Ended Jan. 6
MARCAL PAPER: Incurs $5,411,000 Net Loss in November 2007
MUSICLAND HOLDING: Posts $77,000 Net Loss in December 2007
NEW CENTURY: Incurs $14,549,259 Net Loss in Month Ended Nov. 30
SOLUTIA INC: Incurs $134,000,000 Net Loss in December 200


                             *********

AMERICAN HOME: AHMHI Files Operating Report for September 2007
--------------------------------------------------------------
American Home Mortgage Holdings Inc., a debtor-affiliate of
American Home Mortgage Investment Corp. submitted its monthly
operating report for September 2007.

              American Home Mortgage Holdings, Inc.
                Statement of Financial Condition
                    As of September 30, 2007

Assets:
   Cash and cash equivalents                              $1,000
   Accounts receivable                                   134,546
   Intercompany receivable                           133,122,337
   Investment in subsidiaries                       (535,195,641)
   Other assets
                                                    ------------
      Total Assets                                 ($401,937,758)
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Junior subordinated note                      $304,214,000
      Accrued expenses & other liabilities             4,733,874
                                                    ------------
         Total Liabilities                           308,947,874

   Stockholders' Equity
      Additional paid-in capital                      94,597,808
      Retained earnings                             (805,483,440)
                                                    ------------
         Total Stockholders' Equity                 (710,885,632)
                                                    ------------
Total Liabilities & Stockholders' Equity           ($401,937,758)
                                                    ============


              American Home Mortgage Holdings, Inc.
                       Statement of Income
                 Month Ended September 30, 2007

Income from subsidiaries
   Non-interest income                             ($688,756,350)
                                                    ------------
      Non-interest income                           (688,756,350)

Loss before income taxes                            (688,756,350)
Income taxes                                                   -
                                                    ------------
Net loss                                           ($688,756,350)
                                                    ============

American Home Mortgage Holdings, Inc., also discloses that its
cash as of Sept. 1, 2007, was $1,000.  Since there was no cash
receipts and disbursements for September, AHM Holdings' cash at
the  end of the month is still $1,000.

                      About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for
chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos.
07-11047 through 07-11054).  James L. Patton, Jr., Esq., Joel A.
Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway,
Stargatt & Taylor LLP represent the Debtors.  Epiq Bankruptcy
Solutions LLC acts as the Debtors' claims and noticing agent.  The
Official Committee of Unsecured Creditors selected Hahn & Hessen
LLP as its counsel.  As of March 31, 2007, American Home
Mortgage's balance sheet showed total assets of $20,553,935,000,
total liabilities of $19,330,191,000.  The Debtors' exclusive
period to file a plan expires on March 3, 2008.  (American Home
Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMV Files Operating Report for September 2007
-------------------------------------------------------------
Great Oak Abstract Corp., a debtor-affiliate of American Home
Mortgage Investment Corp. submitted its monthly operating report
for September 2007.

              American Home Mortgage Ventures, LLC
                Statement of Financial Condition
                    As of September 30, 2007
Assets:
   Cash and cash equivalents                            $613,049
   Intercompany receivable                                     -
   Premises and equipment, net                             2,200
   Other assets                                                -
                                                    ------------
      Total Assets                                      $615,249
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Accrued expenses & other liabilities                  (568)
      Intercompany payable                               156,507
                                                    ------------
         Total Liabilities                               155,939

   Stockholders' Equity
      Additional paid-in capital                         395,500
      Retained earnings                                   63,810
                                                    ------------
         Total Stockholders' Equity                      459,310
                                                    ------------
Total Liabilities & Stockholders' Equity                $615,249
                                                    ============


              American Home Mortgage Ventures, LLC
                       Statement of Income
                 Month Ended September 30, 2007

Non-Interest Income:
   Fee income                                              1,125
                                                    ------------
      Non-interest income                                  1,125

Expenses
   Salaries, commissions & benefits, net                       1
   Occupancy and equipment                                   231
   Data processing and communications                         (1)
   Marketing and promotion                                   250
   Travel and entertainment                                   (1)
   Other                                                       1
                                                    ------------
      Total expenses                                         481

Loss before income taxes                                     644
Income taxes                                                   -
                                                    ------------
Net loss                                                    $644
                                                    ============


              American Home Mortgage Ventures, LLC
           Schedule of Cash Receipts and Disbursements
                 Month Ended September 30, 2007

Cash - Beginning of Month, 09/01/2007                   $611,549

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                      1,500
   Administrative                                              -
   Net payroll                                                 -
   Other                                                       -
   Transfers (from DIP accounts)                               -
                                                    ------------
      Total Receipts                                       1,500

Disbursements:
   Net payroll                                                 -
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                          -
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                              -
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                                      -
                                                    ------------
      Net Cash Flow                                        1,500
                                                    ------------
Cash - End of Month - 09/30/07                          $613,049
                                                    ============

                      About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for
chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos.
07-11047 through 07-11054).  James L. Patton, Jr., Esq., Joel A.
Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway,
Stargatt & Taylor LLP represent the Debtors.  Epiq Bankruptcy
Solutions LLC acts as the Debtors' claims and noticing agent.  The
Official Committee of Unsecured Creditors selected Hahn & Hessen
LLP as its counsel.  As of March 31, 2007, American Home
Mortgage's balance sheet showed total assets of $20,553,935,000,
total liabilities of $19,330,191,000.  The Debtors' exclusive
period to file a plan expires on March 3, 2008.  (American Home
Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: Great Oak Files Operating Report for September 2007
-----------------------------------------------------------------
Great Oak Abstract Corp., a debtor-affiliate of American Home
Mortgage Investment Corp. submitted its monthly operating report
for September 2007.

                    Great Oak Abstract Corp.
                Statement of Financial Condition
                    As of September 30, 2007

Assets:
   Cash and cash equivalents                            $380,941
   Accounts receivable                                    36,615
   Intercompany receivable                               693,132
   Premises and equipment, net                             5,339
   Other assets                                          104,800
                                                    ------------
      Total Assets                                    $1,220,827
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Accrued expenses & other liabilities                76,743
                                                    ------------
         Total Liabilities                                76,743

   Stockholders' Equity
      Additional paid-in capital                          95,520
      Retained earnings                                1,048,564
                                                    ------------
         Total Stockholders' Equity                    1,144,084
                                                    ------------
Total Liabilities & Stockholders' Equity              $1,220,827
                                                    ============

Great Oak Abstract Corp. also discloses that as of Sept. 1,
2007, it has cash amounting to $380,941.  There had been no
transactions related to cash receipts and disbursements.  Hence,
Great Oak's cash at the end of September was still $380,941.

                      About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for
chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos.
07-11047 through 07-11054).  James L. Patton, Jr., Esq., Joel A.
Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway,
Stargatt & Taylor LLP represent the Debtors.  Epiq Bankruptcy
Solutions LLC acts as the Debtors' claims and noticing agent.  The
Official Committee of Unsecured Creditors selected Hahn & Hessen
LLP as its counsel.  As of March 31, 2007, American Home
Mortgage's balance sheet showed total assets of $20,553,935,000,
total liabilities of $19,330,191,000.  The Debtors' exclusive
period to file a plan expires on March 3, 2008.  (American Home
Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: Homegate Files Operating Report for September 2007
-----------------------------------------------------------------
Great Oak Abstract Corp., a debtor-affiliate of American Home
Mortgage Investment Corp. submitted its monthly operating report
for September 2007.

               Homegate Settlement Services, Inc.
                Statement of Financial Condition
                    As of September 30, 2007

Assets:
   Cash and cash equivalents                             $25,524
   Restricted cash                                             -
   Intercompany receivable                                     -
   Premises and equipment, net                           233,715
   Other assets                                                -
                                                    ------------
      Total Assets                                      $259,239
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Accrued expenses & other liabilities            $3,254,299
      Intercompany payable                             8,649,207
      Income taxes payable                                 3,671
                                                    ------------
         Total Liabilities                            11,907,177

   Stockholders' Equity
      Additional paid-in capital                         250,000
      Retained earnings                              (11,897,938)
                                                    ------------
         Total Stockholders' Equity                  (11,647,938)
                                                    ------------
Total Liabilities & Stockholders' Equity                $259,239
                                                    ============


               Homegate Settlement Services, Inc.
                       Statement of Income
                 Month Ended September 30, 2007

Non-interest income:
   Tax service                                         ($716,342)
                                                    ------------
      Non-interest income                               (716,342)

Expenses:
   Salaries, commissions and benefits, net                (1,552)
   Data processing and communications                          -
   Marketing and promotion                                20,014
   Other                                                      (1)
                                                    ------------
      Total expenses                                      18,461

Loss before income taxes                                (734,803)
Income taxes                                                   -
                                                    ------------
Net loss                                               ($734,803)
                                                    ============


               Homegate Settlement Services, Inc.
           Schedule of Cash Receipts and Disbursements
                 Month Ended September 30, 2007

Cash - Beginning of Month, 09/01/2007                    $25,802

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                          -
   Administrative                                              -
   Net payroll                                                 -
   Other                                                       -
   Transfers (from DIP accounts)                               -
                                                    ------------
      Total Receipts                                           0

Disbursements:
   Net payroll                                               279
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                          -
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                              -
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                                    279
                                                    ------------
      Net Cash Flow                                         (279)
                                                    ------------
Cash - End of Month - 09/30/07                           $25,523
                                                    ============

                      About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for
chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos.
07-11047 through 07-11054).  James L. Patton, Jr., Esq., Joel A.
Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway,
Stargatt & Taylor LLP represent the Debtors.  Epiq Bankruptcy
Solutions LLC acts as the Debtors' claims and noticing agent.  The
Official Committee of Unsecured Creditors selected Hahn & Hessen
LLP as its counsel.  As of March 31, 2007, American Home
Mortgage's balance sheet showed total assets of $20,553,935,000,
total liabilities of $19,330,191,000.  The Debtors' exclusive
period to file a plan expires on March 3, 2008.  (American Home
Bankruptcy News, Issue No. 25, Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AVADO BRANDS: Incurs $11,226,700 Net Loss in December 2007
----------------------------------------------------------
Avado Brands Inc., aka Applesouth, and its debtor-affiliates
submitted to the U.S. Bankruptcy Court for the District of
Delaware their monthly operating report for December 2007.

For December 2007, the Debtors generated net revenue of
$16,756,100 and incurred a net loss of $11,226,700.  Total cost of
sales for the month were $5,723,800.

Madison, Georgia-based Avado Brands Inc., aka Applesouth, --
http://www.avado.com/-- operates about 120 casual dining
restaurants under the banners Don Pablo's Mexican Kitchen and Hops
Grillhouse & Brewery.  The restaurants are located in 22 states in
the U.S.  As of Sept. 5, 2007, the Debtors employed about 9,970
people.  For the year ended July 31, 2007, the Debtors generated
about $227.8 million in revenues and a negative EBITDA of
$7.8 million.

The Debtor filed for chapter 11 protection on Feb. 4, 2004 (Bankr.
N.D. Tex. Case No. 04-1555).  On April 26, 2005, Judge Steven
Felsenthal confirmed Avado's Modified Plan of Reorganization and
that Plan became effective on May 19, 2005.

On Sept. 5, 2007, Avado filed a voluntary chapter 22 petition
(Bankr. D. Del. Case No. 07-11276) to complete an orderly sale of
its assets, via Section 363 of the Bankruptcy Code.  About 10 of
Avado's affiliates also filed for bankruptcy protection on the
same date (Bankr. D. Del. Case Nos. 07-11277 through 07-11286).

Michael Tuchin, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin,
Bogdanoff & Stern LLP, represent the Debtors.  Donald J.
Detweiler, Esq., at Greenberg Traurig, LLP, is the Debtors' local
counsel.  Kurtzman Carson Consultants LLC acts as the Debtors
claims and noticing agent.  The U.S. Trustee for Region 3 has
appointed creditors to serve on an Official Committee of Unsecured
Creditors to this cases.  Greenberg Traurig LLP represents the
Committee.  In their second filing, the Debtors disclosed
estimated assets and debts between $1 million to $100 million.
The Debtor's exclusive period for filing a plan is extended until
May 2, 2008.


DELPHI CORPORATION: Incurs $964 Million Net Loss in December 2007
-----------------------------------------------------------------

                    Delphi Corporation, et al.
               Unaudited Consolidated Balance Sheet
                     As of December 31, 2007
                          (In Millions)

                              ASSETS

Current assets:
   Cash and cash equivalents                               $113
   Restricted cash                                          125
   Accounts receivable, net:
      General Motors and affiliates                         972
      Other third parties                                   623
      Non-Debtor affiliates                                 250
   Notes receivable from non-Debtor affiliates              278
   Inventories, net:
      Productive material, work-in-process & supplies       653
      Finished goods                                        170
   Other current assets                                     385
   Assets held for sale                                     467
                                                       --------
      TOTAL CURRENT ASSETS                                4,036

Long-term assets:
   Property, net                                          1,446
   Investment in affiliates                                 331
   Investments in non-Debtor affiliates                   3,303
   Goodwill                                                 152
   Other intangible assets                                   25
   Other                                                    487
                                                       --------
      TOTAL LONG-TERM ASSETS                              5,744
                                                       --------
TOTAL ASSETS                                             $9,780
                                                       ========

              LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities not subject to compromise:
   Current portion of long-term debt                     $2,782
   Accounts payable                                       1,007
   Accounts payable to non-Debtor affiliates                689
   Accrued liabilities                                    1,322
   Liabilities held for sale                                167
                                                       --------
   TOTAL CURRENT LIABILITIES                              5,967

Long-term liabilities not subject to compromise:
   Long-term debt                                            24
   Employee benefit plan obligations and other              956

Liabilities subject to compromise                        16,276
                                                       --------
   TOTAL LIABILITIES                                     23,223

Stockholders' deficit:
   TOTAL STOCKHOLDERS' DEFICIT                          (13,443)
                                                       --------
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT              $9,780
                                                       ========


                    Delphi Corporation, et al.
          Unaudited Consolidated Statement of Operations
                  Month Ended December 31, 2007
                          (In Millions)

Net sales:
   General Motors and affiliates                           $338
   Other customers                                          241
   Non-Debtor affiliates                                     27
                                                       --------
Total net sales                                             606
                                                       --------
Operating expenses:
   Cost of sales                                            676
   U.S. employee workforce transition program charges       (36)
   Long-lived asset impairment charges                       39
   Depreciation and amortization                             56
   Selling, general and administrative                      118
   Securities & ERISA litigation charge                     (10)
                                                       --------
Total operating expenses                                    843
                                                       --------
Operating loss                                             (237)

Interest expense                                            (45)
Loss on extinguishment of debt                                -
Other (expense) income, net                                  37

Reorganization items                                        (14)
Income tax benefit (expense)                                  9
Equity income from non-consolidated affiliates              (15)
Loss from discontinued operations                          (599)
Equity income from non-Debtor affiliates                   (100)
                                                       --------
NET LOSS                                                  ($964)
                                                       ========


                    Delphi Corporation, et al.
          Unaudited Consolidated Statement of Cash Flows
                  Month Ended December 31, 2007
                          (In Millions)

Cash flows from operating activities:
   Net loss                                               ($964)
   Adjustments to reconcile net loss
    to net cash provided by operating activities:
    Depreciation and amortization                            56
    Long-lived asset impairment                              39
    Deferred income taxes                                    (8)
    Pension and other postretirement benefit expenses        71
    Equity income from unconsolidated affiliates             15
    Equity income from non-Debtor affiliates                100
    Reorganization items                                     14
    U.S. employee workforce transition program charges      (36)
    Securities and ERISA litigation credit                  (10)
   Changes in operating assets and liabilities:
    Accounts receivable, net                                433
    Inventories, net                                         31
    Other assets                                             34
    Accounts payable, accrued and other long-term debt     (285)
    U.S. employee workforce transition program payment      (30)
    Other postretirement benefit payments                   (16)
    Pension contributions                                    (1)
    Payments for reorganization items                       (14)
    Dividends from non-debtor affiliates                    568
    Dividends from joint ventures                            15
    Other                                                   (43)
    Operating cash flows from discontinued operations       664
                                                       --------
Net cash used in operating activities                       633

Cash flows from investing activities:
   Capital expenditures                                      (8)
   Proceeds from sale of property                             3
   Decrease (increase) in restricted cash                    (1)
   Return on investment in non-debtor affiliates            108
   Other                                                     (9)
   Investing cash flows used in discontinued operations      (4)
                                                       --------
Net cash used in investing activities                        89

Cash flows from financing activities:
   Repayments on DIP credit facility                       (555)
   Repayments on borrowings from non-Debtor affiliates      (66)
   Net repayments on borrowings from other debt              (1)
                                                       --------
Net cash used in financing activities                      (622)
                                                       --------
Increase in cash and cash equivalents                       100
Cash and cash equivalents at beginning of period             13
                                                       --------
Cash and cash equivalents at end of period                 $113
                                                       ========


Headquartered in Troy, Michigan, Delphi Corporation (PINKSHEETS:
DPHIQ) -- http://www.delphi.com/-- is the single supplier of
vehicle electronics, transportation components, integrated systems
and modules, and other electronic technology.  The company's
technology and products are present in more than 75 million
vehicles on the road worldwide.  Delphi has regional headquarters
in Japan, Brazil and France.

The company filed for chapter 11 protection on Oct. 8, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler Jr.,
Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden,
Arps, Slate, Meagher & Flom LLP, represent the Debtors in their
restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell A.
Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP,
represents the Official Committee of Unsecured Creditors.  As of
March 31, 2007, the Debtors' balance sheet showed $11,446,000,000
in total assets and $23,851,000,000 in total debts.

The Court approved Delphi's First Amended Joint Disclosure
Statement and related solicitation procedures for the solicitation
of votes on the First Amended Plan on Dec. 20, 2007.  The Court
confirmed the Debtors' First Amended Plan on Jan. 25, 2008.  The
Debtor anticipates to emerge from bankruptcy by March 31, 2008,
the expiration date of its exclusive plan filing period.  (Delphi
Bankruptcy News, Issue No. 110; Bankruptcy Creditors' Service
Inc., http://bankrupt.com/newsstand/or 215/945-7000)

                           *     *     *

As reported in the Troubled Company Reporter on Jan. 16, 2008,
Moody's Investors Service assigned ratings to Delphi Corporation
for the company's financing for emergence from Chapter 11
bankruptcy protection: Corporate Family Rating of (P)B2;
$3.7 billion of first lien term loans, (P)Ba3; and $0.825 billion
of 2nd lien term debt, (P)B3.  In addition, a Speculative Grade
Liquidity rating of SGL-2 representing good liquidity was
assigned.  The outlook is stable.

As reported in the Troubled Company Reporter on Jan. 11, 2008,
Standard & Poor's Ratings Services expects to assign its 'B'
corporate credit rating to Troy, Michigan-based automotive
supplier Delphi Corp. upon the company's emergence from Chapter 11
bankruptcy protection, which may occur by the end of the first
quarter of 2008.  S&P expects the outlook to be negative.

In addition, Standard & Poor's expects to assign these
issue-level ratings: a 'B+' issue rating (one notch above the
corporate credit rating), and '2' recovery rating to the company's
proposed $3.7 billion senior secured first-lien term loan; and a
'B-' issue rating (one notch below the corporate creditrating),
and '5' recovery rating to the company's proposed $825 million
senior secured second-lien term loan.


DUNMORE HOME: Posts $490,271 Net Loss in Month Ended November 30
----------------------------------------------------------------

                        Dunmore Home, Inc.
                          Balance Sheet
                     As of November 30, 2007

                              ASSETS

Current Assets:
Cash and cash equivalents                              $721,306
Accounts receivable, net                                277,186
Inventory                                                     -
Other current assets                                          -
                                                    -----------
Total current assets                                    998,492

Property plant and equipment                          4,653,969
Investment in subsidiary LLC's                        6,805,958
Related party note receivable (S. Dunmore)           11,277,410
Receivable from Dunmore Land Co.                        350,750
Other long-term assets                                1,790,910
Deferred compensation investments                     1,658,998
                                                    -----------
Total Assets                                        $27,536,487
                                                    ===========

               LIABILITIES & SHAREHOLDERS' DEFICIT

Liabilities not subject to compromise:

Current liabilities:
Accounts payable trace (postpetition)                   $21,196
Accrued payroll                                         284,578
Debtor in Possession loan                               566,423
Due to S. Dunmore JMP                                   103,333
Short-term borrowings                                 1,529,191
                                                    -----------
Total current liabilities                             2,504,721
                                                    -----------
Liabilities subject to compromise:

Accounts payable prepetition                          1,709,841
Long-term unsecured debt - TPS                       20,000,000
Long-term secured debt                                2,000,000
Accrued warranty costs                                  384,577
Deferred compensation payable                         1,662,593
Other accruals                                          887,770
                                                    -----------
Total liabilities                                   $29,149,502
                                                    -----------

Shareholders' deficit:
Common stock                                            $25,000
Retained deficit                                     (1,147,744)
CY Income                                              (490,271)
                                                    -----------
                                                    ($1,613,015)
                                                    -----------
Total liabilities and shareholders' deficit         $27,536,487
                                                    ===========

                        Dunmore Home, Inc.
                     Statement of Operations
               for the month ended November 30, 2007

Revenues:
Sale of real property                                        -
Rental & service income from SBDs                       $22,757
                                                    -----------
                                                         22,757
                                                    -----------
Costs and expenses:
Costs of goods sold                                           -
Payroll and benefit related costs                       315,823
Insurance                                                 2,481
Office administrative & technology costs                  8,614
Rent                                                     49,156
Depreciation & amortization                              18,941
Professional fees                                        18,621
Other                                                     2,991
Interest                                                129,556
                                                    -----------
                                                        546,183
                                                    -----------
Earnings before reorganization & income tax            (523,426)

Reorganization items:
Loss on disposal of facility                                  -
Gain on sale of real property                                 -
Professional fees                                             -
Provision for rejected executory contracts                    -
Interest earned                                         (33,155)
                                                    -----------
                                                        (33,155)
                                                    -----------
Loss before income tax & discontinued operations       (490,271)
                                                    -----------
Income tax benefit                                            -
Loss before discontinued operations                    (490,271)
                                                    -----------
Discontinued operations:
Loss from discontinued operations                             -
                                                    -----------
Net loss                                              ($490,271)
                                                    ===========

                        Dunmore Home, Inc.
                           Cash Flow
              for the period ended November 30, 2007

Cash flows from operating activities:
Sale of Stone Mitigation Land                                 -
Rent & service fees (S. Dunmore)                        $29,430
Other sources                                            20,088
Payroll and benefits                                   (118,079)
Insurance                                                (8,123)
Corporate office expenses                               (11,534)
Consulting fees                                         (10,800)
Other                                                   (20,154)
                                                    -----------
Net cash used in operating activities                  (119,172)
                                                    -----------
Cash flows from investing activities:
Purchase of property and equipment                            -
Advances to related party                                     -
                                                    -----------
Net cash used in investing activities                         -
                                                    -----------
Cash flows from financing activities:
Debtor-in-possession loan (S. Dunmore Loan)             392,915
Debtor-in-possession loan payments                            -
Contributions to LLC to cover utilities & warranty      (33,190)
                                                    -----------
Net cash provided by financing activities               359,725
                                                    -----------
Net change in cash and cash equivalents                 240,553
                                                    -----------
Cash and cash equivalents, beg. of year                 480,753
                                                    -----------
Cash and cash equivalents, end of year                 $721,306
                                                    ===========

Headquartered in Granite Bay, California, Dunmore Homes Inc. is a
privately-owned homebuilder.  The company filed for Chapter 11
protection on Nov. 8, 2007 (Bankr. S.D.N.Y. Case No. 07-13533).
Maria A. Bove, Esq., and Debra I. Grassgreen, Esq., at Pachulski
Stang Ziehl & Jones LLP, represent the Debtor in its restructuring
efforts.  The Official Committee of Unsecured Creditors has
selected Morrison & Foerster LLP as its counsel in this bankruptcy
proceeding.  When the Debtor filed for protection against its
creditors, it listed assets and liabilities of more than
$100 million.

In January 2008, the U.S. Bankruptcy Court for the Southern
District of New York ordered the transfer of Debtor's Chapter 11
case to the U.S. Bankruptcy Court for the Eastern District of
California, Sacramento Division.  The Debtor's exclusive period to
file a plan expires on March 7, 2008.  (Dunmore Bankruptcy News,
Issue No. 9; Bankruptcy Creditors' Service, Inc.,