/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080826.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, August 26, 2008, Vol. 12, No. 203 Headlines 1091 RIVER: Membership Interests Up For Sale at Sept. 4 Auction A & K SKYLINE: Case Summary & 12 Largest Unsecured Creditors A & M DEVELOPMENT: Voluntary Chapter 11 Case Summary ALLBRITTON COMMS: Moody's Downgrades Senior Notes' Rating to B2 AMDL INC: Posts $429,567 Net Loss in 2008 Second Quarter ARR-MAZ CUSTOM: S&P Withdraws 'B-' Corp. Credit Rating ASG CONSOLIDATED: Unit's $50MM Loan Gets 'BB' Rating from S&P ATLANTIC ENERGY: Voluntary Chapter 11 Case Summary AUBURN MEMORIAL: PBGC Assumes Pension Plans for 1,500 Employees BANC OF AMERICA TRUST: S&P Affirms BB, B Ratings on 6 Classes BARBEQUES GALORE: Gets Court's Nod to Use $3 Million DIP Financing BAYWOOD INTERNATIONAL: Posts $559,443 Net Loss in 2008 2nd Quarter BOSCOV'S INC: Section 341(a) Meeting Scheduled for September 12 BRIAN WARREN: Case Summary & 20 Largest Unsecured Creditors BSML INC: June 28 Balance Sheet Upside-Down by $2.4 Million BUCKHEAD OIL: Court Okays Appointment of Chapter 11 Trustee BUILDING MATERIALS: Post $66MM Net Loss in Period Ended June 30 C-BASS XVIII: Fitch Cuts & Removes 5 Classes from Watch Negative CA INC: Fitch Revises Outlook to Positive; Affirms IDR at 'BB+ CASALE MARBLE: Court Okays Paul L. Orshan as Bankruptcy Counsel C-BASS XIX: Fitch Downgrades 5 Classes; Off Rating Watch Negative CCS MEDICAL: S&P Cuts Sr. Secured Debt Rating to 'B' CHEMTURA CORP: S&P Affirms 'BB' Ratings Affirmed; Off Watch CHRYSLER LLC: Auto Makers Seeking Up to $50BB in Lifeline COACH AMERICA: S&P Affirms 'B-' Credit Rating; Outlook Stable COBALT CMBS: S&P Junks 2006-C1 Class O Rating COLUMBIAN BANK: Kansas Bank Fails & FDIC is Appointed as Receiver COOPER TIRE: S&P Affirms 'B+' Rating, Sees Slow Tire Demand CORLISS POINTE: Ch. 11 Case Summary and Largest Unsecured Creditor DARREN NELSON: Voluntary Chapter 11 Case Summary DENBURY RESOURCES: Acquisition No Effect on BB Ratings, S&P Says FOAMEX INTERNATIONAL: Audit Committee Dismisses KPMG as Accountant FOAMEX LP: S&P Junks Rating, Sees Need for Covenant Relief FORD MOTOR: Big Three Auto Makers Seeking Up to $50BB in Lifeline GENERAL MOTORS: U.S. Auto Makers Seeking Up to $50BB in Lifeline HOPE MILL: Ch. 11 Case Summary & 20 Largest Unsecured Creditors INDEPENDENCE IV: Fitch Junks Ratings on Three Classes INDEPENDENCE IV: Fitch Lowers Class A-1 Notes to BB from A+ JEWISH CENTER: Voluntary Chapter 11 Case Summary KLERIOTIS LLC: Case Summary & 20 Largest Unsecured Creditors LEXINGTON CONSULTING: Voluntary Chapter 11 Case Summary LOCATEPLUS HOLDINGS: Auditor Expresses Going Concern Doubt LUMINENT MORTGAGE: Moody's Junks 12 Class Tranches' Ratings MADACY ENTERTAINMENT: Amends Bank Facility to Regain Compliance METROFINANCIERA SA: Fitch Lowers Individual Rating to D/E from D MOHEGAN TRIBAL: Moody's Places Two Senior Notes' Rating At Low-B MORGAN STANLEY: Fitch Holds CCC Rating for $8.6MM Class N Certs MORGAN STANLEY: Moody's Junks 158 Class Certificates' Ratings MORTGAGE CAPITAL: Fitch Holds CCC Rating for $7.6MM Class K Certs MORTGAGE CAPITAL: Fitch Ratings Upgrades Commercial Mortgage Certs MORTGAGES LTD: May Hire Greenberg Traurig as Special Counsel MRS FIELDS: Files for Bankruptcy Under Chapter 11 in Delaware MRS FIELDS: Case Summary & 20 Largest Unsecured Creditors M.W. JOHNSON: Court Disallows Hiring Affiliate as Broker NAMIREI-SHOWA: Files for Chapter 15 in Manhattan NAMIREI-SHOWA: Chapter 15 Petition Summary NATURADE INC: Posts $935,113 Net Loss in 2008 Second Quarter NEWBURGH INVESTMENT: Case Summary & 3 Largest Unsecured Creditors NEWCOURT STREET: Fitch Resolves RWN Status, Drops Rating on Notes OCCULOGIX INC: Enters Into $2 Mil. Loan Agreement with OcuSense LUMBER CO: Increased Competition Forces Bankruptcy OPTEUM MORTGAGE: Moody's Junks 15 Class Certificates' Ratings OSYKA CORP: Judge Isgur Confirms Joint Chapter 11 Plan OXFORD STREET: Fitch Withdraws Ratings on Nine Classes of Notes PALM SUITES: Voluntary Chapter 11 Case Summary PAPPAS TELECASTING: Can Access Cash Collateral for Another Week PARKER EXCAVATING: Court Okays Kutner Miller as Bankruptcy Counsel PARKER EXCAVATING: Files Schedules of Assets & Liabilities PERFORMANCE LABS: Case Summary & 20 Largest Unsecured Creditors PILOT HILL: Voluntary Chapter 11 Case Summary POPE & TALBOT: Chapter 15 Petition Summary PORT BARRE: Moody's Confirms Corporate Family Rating at B2 PROBE MANUFACTURING: Jaspers Hall Expresses Going Concern Doubt PRUDENTIAL CRANBROOK: Files for Chapter 11 Bankruptcy RADIO ONE: S&P Affirms 'B' Credit Rating Affirmed; Outlook Neg REGATTA BAY: Voluntary Chapter 11 Case Summary REGENT STREET: Fitch Withdraws Ratings on Nine Classes of Notes REGINA MEDICAL: Weakened Financials Cue S&P Rating Cut to 'BB+' RELIANT ENERGY: Seeks Sept. 8 Extension of Plan Filing Period RMBS SECURTIES: Moody's Junks 101 Classes of Notes' Ratings SAIDUTT INC: Voluntary Chapter 11 Case Summary SGS INV: Moody's Rates $15 Million Class D Interests Notes at Ba3 STAMFORD CENTER: Files for Bankruptcy in Connecticut STAR GAS: Fitch Affirms B IDR and B+/RR3 $10.25% Sr. Notes Rating STEVE & BARRY'S: Court Approves Sale to BHY S&B for $163 Million SUMMIT CBO: S&P Withdraws 'B+' Rating on Class A Securities SUN-TIMES MEDIA: Inks Master Service Agreement with STC and CPI SUNTRUST ALT: Moody's Junks Three Class Certificates' Ratings SYNTAX-BRILLIAN: Officials Sued by Taiwan Company Over SEC Filings TEEVEE TOONS: Two Units Refute Committee's Case Consolidation Plea TENSAR CORP: S&P Puts 'B' Credit Rating On Watch Negative TIAA CMBS: Fitch Affirms B Rating for $7.3MM Class N Certificates TCW SELECT: S&P Affirms BB Ratings on 3 Classes of Securities TORRENT ENERGY: Posts $1,076,706 Net Loss in Quarter Ended June 30 TOUSA INC: Citicorp Wants Akin Gump and Robbins Tasks Coordinated TOUSA INC: Has Until October 25 to Remove Pending Civil Actions TOUSA INC: Wants to Amend Lot Purchase, Sale Deal with Frey Living TRIANT HOLDINGS: Inks Non-Binding Deal for FDC Unit's Assets Sale TRINITY HOSPITAL: Voluntary Chapter 11 Case Summary TRONOX INC: Non-Compliance Cues NYSE Delisting Notice TRONOX INC: Dennis Wanlass Appointed to Board of Directors US AIRWAYS: Flight Attendants Angry Over Incentives to Executives US SHIPPING: S&P Junks Ratings, Sees Covenant Breach in 3rd Qtr USA SPRINGS: Strikes Deal to Sell Water to Italy-Based Company WACHOVIA BANK: Moody's Holds Low-B Ratings on Six Class Certs. WENTWORTH ENERGY: Inks Amended Rights Deal with Investors WESTERN IOWA: 8th Circuit Favors Buyers Over Fungible Goods WOODSIDE GROUP: Involuntary Chapter 11 Case Summary * S&P Cuts 49 Ratings on $4.441BB in U.S. Asset-Backed CDOs * S&P Cuts 209 Ratings on 15 2006, 1st-Half 2007 Alt-A RMBS Deals * S&P Cuts 334 Ratings from 46 U.S. Subprime RMBS Deals * S&P Says Banks' Costs Soar Past Investment-Grade Nonfinancials * Airlines Intend to Slash More Jobs After Labor Day * Large Companies with Insolvent Balance Sheets ********* 1091 RIVER: Membership Interests Up For Sale at Sept. 4 Auction --------------------------------------------------------------- Tarter Krinsky & Drogin LLP will hold a public auction Sept. 4, 2008, at 11:00 a.m., to sell all membership interests in 1091 River Avenue LLC. The auction will take place at 1350 Broadway, 11th floor in New York. The company owns a one-story 19 unit commercial strip center known as Tood Plaza, located at 1091 River Avenue (Route 9) in Lakewood, New Jersey. A & K SKYLINE: Case Summary & 12 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: A & K Skyline Development LLC 9420 East Golf Links, Suite 164 Tucson, AZ 85730 Bankruptcy Case No.: 08-10814 Type of Business: The Debtor is a single asset real estate as defined in Section 101(51B) of the U.S. Bankruptcy Code. Chapter 11 Petition Date: August 20, 2008 Court: District of Arizona (Tucson) Debtor's Counsel: Jeffrey H. Greenberg, Esq. (jgreenberg@stubbsschubart.com) Stubbs & Schubart P.C. 340 North Main Avenue Tucson, AZ 85701 Tel: (520) 623-5466 Fax: (520) 882-3909 Estimated Assets: $1,000,000 to $10,000,000 Estimated Debts: $1,000,000 to $10,000,000 A copy of the Debtor's petition is available for free at: http://bankrupt.com/misc/azb4:08-bk-10814.pdf A & M DEVELOPMENT: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: A and M Development, Inc. 10556 Combie Road, Suite 6386 Auburn, CA 95602 Bankruptcy Case No.: 08-31696 Chapter 11 Petition Date: August 20, 2008 Court: Eastern District of California (Sacramento) Judge: Thomas Holman Debtor's Counsel: W. Steven Shumway, Esq. 2140 Professional Drive, Suite 250 Roseville, CA 95661 Tel: (916) 789-8821 Total Assets: $3,790,300 Total Debts: $2,297,000 The Debtor does not have any unsecured creditors who are not insiders. ALLBRITTON COMMS: Moody's Downgrades Senior Notes' Rating to B2 --------------------------------------------------------------- Moody's Investors Service changed the outlook for Allbritton Communications Company to negative from stable and lowered the rating on its senior subordinated notes to B2 from B1. The combination of higher than usual distributions to its parent company in the fiscal year ended Sept. 30, 2007, and challenging economic conditions could pressure Allbritton's ability to reduce leverage to below 6 times debt-to-EBITDA, as incorporated in the previously stable outlook. Allbritton borrowed under its revolving credit facility to fund the distributions, and in accordance with Moody's Loss Given Default methodology, the increased amount of debt ranking senior to the bonds drives the ratings downgrade of the senior subordinated notes. A summary of actions: Allbritton Communications Company -- Senior Subordinated Bonds, Downgraded to B2, LGD4, 58% from B1 -- Outlook, Changed To Negative From Stable -- Affirmed B1 Corporate Family Rating -- Affirmed B1 Probability of Default Rating Allbritton's B1 corporate family rating reflects high leverage and minimal to negative free cash flow after net dividends, the result primarily of its strategy of distributing the majority of its cash flow to its parent company. Notwithstanding some debt holder protection within the credit agreement and bond indentures, the uncertainty regarding the magnitude of dividends constrains the rating. The rating also incorporates the company's revenue concentration in the Washington, DC market, its lack of network diversity, and the inherent cyclicality of advertising spending and long term secular pressures as the proliferation of new media fragments audiences and these non-traditional media compete for advertising dollars. Allbritton's presence in top markets and still reasonably strong EBITDA margins as well as its ownership of NewsChannel 8, which lends some revenue stability, support the rating. Headquartered in Arlington, Virginia, Allbritton Communications Company, owns and operates television stations affiliated with ABC in seven geographic markets. The company also owns NewsChannel 8, a 24 hour basic cable channel primarily focused on local news for DC area, and Politico, a specialized newspaper and Internet site that serves Congress, congressional staffers, and others interested in the political electoral process. Joe L. Allbritton indirectly controls the company, and its annual revenue is approximately $225 million. AMDL INC: Posts $429,567 Net Loss in 2008 Second Quarter -------------------------------------------------------- AMDL Inc. reported a net loss of $429,567 on net revenues of $5,780,832 for the second quarter ended June 30, 2008, compared with a net loss of $2,264,305 on net revenues of $2,413,501 in the same period last year. China-Wholesale's net revenues were $5,710,346 for the three months ended June 30, 2008, compared to $2,367,051 for the same period in 2007. The 141% increase is primarily due to the continuing demand for pharmaceutical products in China, new distribution agreements and expansion into new regions. General and administrative expenses for the three months ended June 30, 2008, decreased 12% to $2,846,344, as compared to $3,244,910 for the same period in 2007. For the six months ended June 30, 2008, cash used in operations was $1,348,241, compared to $2,876,356 cash used in operation for the same period in 2007. At June 30, 2008, the company's consolidated balance sheet showed $33,531,920 in total assets, $5,901,153 in total liabilities, and $27,630,767 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2008, are available for free at http://researcharchives.com/t/s?3117 Going Concern Doubt As reported in the Troubled Company Reporter on April 25, 2008, KMJ Corbin & Company LLP expressed substantial doubt about AMDL Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's significant operating losses and negative cash flows from operations through Dec. 31, 2007, and accumulated deficit at Dec. 31, 2007. The company incurred net losses off $429,567 and $2,264,305 during the three months ended June 30, 2008 and 2007, respectively, and had an accumulated deficit of $38,788,660 at June 30, 2008. In addition, the company used cash in operations of $1,348,241 and $2,876,356 during the six months ended June 30, 2008 and 2007, respectively. About AMDL Inc. Based in Tustin, California, AMDL, Inc., (AMEX: ADL) -- http://www.amdl.com/-- with operations in Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated specialty pharmaceutical company. In combination with its subsidiary Jade Pharmaceutical Inc., AMDL engages in the research, development, manufacture, and marketing of diagnostic products. ARR-MAZ CUSTOM: S&P Withdraws 'B-' Corp. Credit Rating ------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'B-' corporate credit and other ratings on Mulberry, Fla.-based Arr-Maz Custom Chemicals Inc. at the company's request. The producer of niche specialty chemicals and additives was acquired by new equity sponsor Snow Phipps Group LLC from GSO Capital Partners L.P., and its debt obligations were refinanced. ASG CONSOLIDATED: Unit's $50MM Loan Gets 'BB' Rating from S&P ------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB' (two notches above the 'B+' corporate credit rating) senior secured bank loan and '1' recovery rating to American Seafoods Group LLC's $50 million term loan B-3 due in 2012. The '1' recovery rating indicates the expectation of very high recovery (90% to 100%) in the event of a payment default. The company used this facility to help fund the majority of the purchase price of two American Fisheries Act fishing vessels and the related U.S. Bering Sea Pollock quota. The existing recovery and issues-level ratings for American Seafoods Group LLC's existing secured and unsecured debt remain unchanged. American Seafoods Group LLC is the wholly owned operating subsidiary of parent ASG Consolidated LLC (ASGC; B+/Negative/--). The ratings on ASGC and its wholly owned operating subsidiary, ASG, and the co-issuer of the company's senior discount notes, ASG Finance Inc. (ASGF), reflect the company's high leverage, aggressive financial policy, and participation in the competitive, commodity-oriented commercial fishing industry. ASGC has the leading position as the largest and lowest-cost producer in the industry, along with a proven track record for operating under the highly regulated environment. For analytical purposes, Standard & Poor's views ASGC, ASG, and ASGF as one economic entity, and they are accordingly analyzed on a consolidated basis. ASGC is a vertically integrated seafood harvesting, processing, and marketing company, operating catcher-processor vessels which participate in the largest commercial fishery in U.S. waters. The outlook is negative. "While the company continues to demonstrate stable operating performance, we believe it will be more challenged to materially reduce debt leverage in the near term, particularly as its discount notes become cash pay in May 2009," said Standard & Poor's credit analyst Patrick Jeffrey. As a result, we could lower the ratings in the near term if the company does not reduce debt leverage approaching the low-5x area and/or cannot maintain sufficient cushion on its financial covenants. "However, if the company can improve leverage closer to 5x and maintain stable operating performance and liquidity, we could revise the outlook to stable. An outlook revision to positive is unlikely, given ASG's existing high leverage," he continued. Ratings List ASG Consolidated LLC American Seafoods Group LLC Corp. credit rating B+/Negative/-- Ratings Assigned American Seafoods Group LLC $50 million term loan B-3 BB (Recovery rtg: 1) ATLANTIC ENERGY: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Atlantic Energy & Food Mart Inc. 1923 Manchester Avenue Los Angeles, CA 90047 Bankruptcy Case No.: 08-22990 Chapter 11 Petition Date: August 18, 2008 Court: Central District of California (Los Angeles) Judge: Vincent P. Zurzolo Debtor's Counsel: Daryoosh Khashayar, Esq. 400 South Melrose Drive Suite 209 Vista, CA 92081 Tel: (760) 806-4388 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of its largest unsecured creditors. AUBURN MEMORIAL: PBGC Assumes Pension Plans for 1,500 Employees --------------------------------------------------------------- The Pension Benefit Guaranty Corporation has assumed responsibility for the pensions of more than 1,500 workers and retirees of Auburn Memorial Hospital, a non-profit medical center in Auburn, New York. The PBGC stepped in after a bankruptcy court found that Auburn Memorial would not be able to survive outside of bankruptcy protection unless each of its four underfunded pension plans ended. The agency also moved to assume the plans because nearly $13 million in required contributions to the plans were due and unpaid. "We have been actively monitoring the financial status of hospital systems across the country as the environment has gotten harder for them to remain viable," said PBGC Director Charles E.F. Millard. "In New York, the Berger Commission has shown the vulnerability of certain health care institutions in the state. Other states face similar pressures. The agency will step in to protect the pension benefits of workers and retirees, like the ones at Auburn Memorial. These are hard-working professionals who have devoted their lives to providing medical treatment to members of their community. During their time of service, they believed that the retirement funds they were earning would be there when they needed them. We are here to make sure that happens." The four plans are: * Auburn Memorial Hospital Retirement Plan for Non-Bargaining Unit Employees. * Auburn Memorial Hospital Retirement Plan for Auburn Memorial Hospital Employees Represented by Licensed Practical Nurses & Technicians of New York, Inc., Local 721. * Auburn Memorial Hospital Retirement Plan for Auburn Memorial Hospital Employees Represented by Local 1199 Upstate. * Auburn Memorial Hospital Retirement Plan for Auburn Memorial Hospital Employees Represented by Local 3124 and Council 66, American Federation of State, County, and Municipal Employees. The hospital's retirees will continue to receive their monthly benefit checks without interruption, and other workers will receive their pensions when they are eligible to retire. Together, the plans have assets of about $37 million to cover $66.5 million in benefit liabilities, according to PBGC estimates. The agency expects to be responsible for about $28.2 million of the $29.5 million shortfall. The PBGC will take over the assets and use insurance funds to pay guaranteed benefits earned under the plans, which ended as of Dec. 31, 2007. The PBGC became trustee of the plans on July 24, 2008. Assumption of the plan's unfunded liabilities will have no material effect on the PBGC's financial statements, according to generally accepted accounting principles. Under federal pension law, the maximum guaranteed pension at age 65 for participants in plans that terminated in 2007 is $49,500 per year. The maximum guaranteed amount is lower for those who retire earlier or elect survivor benefits. In addition, certain early retirement subsidies and benefit increases made within the past five years may not be fully guaranteed. Auburn Memorial sought Chapter 11 protection in the U.S. Bankruptcy Court in Syracuse on April 24, 2007. The filing was made to restructure the hospital's debt and resolve its pension- related liability issues. In December 2007, the court ruled that Auburn met the requirements under ERISA, the federal pension law that created the PBGC, for a distress termination of each of the plans. Retirees of Auburn Memorial who draw a benefit from the PBGC may be eligible for the federal Health Coverage Tax Credit. The PBGC is a federal corporation created under the Employee Retirement Income Security Act of 1974. It currently guarantees payment of basic pension benefits earned by 44 million American workers and retirees participating in over 30,000 private-sector defined benefit pension plans. The PBGC receives no general tax revenue and is not backed by the full faith and credit of the U.S. government. Operations are financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns. About Auburn Memorial Headquartered in Auburn, New York, Auburn Memorial Hospital -- http://www.auburnhospital.com/-- is a community-focused hospital that delivers a full range of acute, outpatient and preventive care services for Cayuga County and the surrounding Finger Lakes region of central New York. As reported by the Troubled Company Reporter, Auburn Memorial Hospital filed for chapter 11 protection on April 24, 2007, with the U.S. Bankruptcy Court for the Northern District of New York. Two of the Debtor's affiliates, Auburn Memorial Companies, Inc., and A.M.H. Properties, Inc., also filed for bankruptcy. According to the TCR, The Ithaca Journal said the action was done to address and resolve the liens recently filed against the Debtor real property by the Pension Benefit Guaranty Corporation. The Debtor also hopes to restructure its obligations owed to certain other creditors under chapter 11. According to the Post-Standard, the Debtor had $20 million in unsecured debt, $13.8 million of which it owes to its employees' pension system, when it filed for bankruptcy. Before filing for bankruptcy, the Debtor had initiated a long-term restructuring plan that aims to guide its operations as well as provide a framework for the Debtor to emerge as a financially sound company, the Ithaca Journal related. The Court confirmed on July 10, 2008, Auburn Memorial's Amended Joint Plan of Reorganization, allowing the Debtors to emerge from Chapter 11 bankruptcy protection. BANC OF AMERICA TRUST: S&P Affirms BB, B Ratings on 6 Classes ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on 25 classes of commercial mortgage pass-through certificates from Banc of America Commercial Mortgage Trust 2006-1. The affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. As of the Aug. 11, 2008, remittance report, the collateral pool consisted of 192 loans with an aggregate trust balance of $2.007 billion, compared with the same number of loans totaling $2.038 billion at issuance. The master servicer, Bank of America N.A. (BofA), reported financial information for 95% of the pool, 99% of which was full-year 2007 data. Standard & Poor's calculated a weighted average debt service coverage (DSC) of 1.59x for the pool, up from 1.49x at issuance. There are two 30-plus-day delinquent loans in the pool ($18.2 million, 1%), and there are no assets with the special servicer, LNR Partners Inc. The trust has not experienced any losses to date. "There are nine loans ($62.0 million) in the pool that have reported low DSCs, and we are concerned with five ($18.2 million) of them. The nine loans are secured by a variety of property types with an average balance of $6.9 million and have experienced a weighted average decline in DSC of 40% since issuance. The five loans that are credit concerns are secured by retail, self- storage, and multifamily properties and have experienced a combination of declining occupancy and higher operating expenses. Because the other four loans have improved occupancy or are undergoing renovation, they are not credit concerns," S&P says. The top 10 loans have an aggregate outstanding balance of $700.3 million (35%) and a weighted average DSC of 1.57x, down from 1.76x at issuance. Standard & Poor's reviewed property inspections provided by the master servicer for nine of the assets underlying the top 10 exposures. One of the properties was characterized as "excellent," while the remaining properties were characterized as "good." The credit characteristics of the KinderCare Portfolio, Torre Mayor, and 2324 Boston Road loans are consistent with those of investment-grade obligations. Details of the two largest loans in the pool are: -- The KinderCare Portfolio loan is the largest loan in the pool, with a trust balance of $146.0 million (7%) and a whole-loan balance of $632.7 million. The whole loan consists of three pari passu senior participations, which are all securitized, and a $195.0 million junior participation that is securitized on a nonpooled basis. The six "KC" certificates derive 100% of their cash flows from the properties backing the KinderCare Portfolio loan. In addition to the whole loan, the borrower's equity interests secure mezzanine debt totaling $50.0 million. The loan is secured by 713 early childhood education centers in 37 states. California (10%) and Illinois (10%) have the largest geographic concentrations of the collateral properties. For the year ended Dec. 31, 2007, DSC was 2.02x. Standard & Poor's adjusted value for this loan is comparable to its level at issuance. -- Torre Mayor is the fifth-largest loan in the pool, with a trust balance of $53.9 million and a whole-loan balance of $147.5 million. The whole loan consists of two pari passu senior participations, which are both securitized, and two junior participations totaling $40.0 that are not securitized. The loan is secured by an 828,821-sq.-ft. office property in Mexico City. For the year ended Dec. 31, 2007, DSC was 2.08x, and occupancy was 95%. Standard & Poor's adjusted value for this loan is comparable to its level at issuance. "BofA reported a watchlist of 28 loans ($197.0 million, 10%). The Marriott Courtyard Grand Cayman loan ($28.7 million, 1%) is the largest loan on the watchlist. The loan is secured by a 232-room full-service hotel on Grand Cayman Island. The loan appears on the watchlist because it reported a DSC of 0.28x for the year ended Dec. 31, 2006. The property's performance suffered because of the damage it sustained during the 2006 hurricane season and the decline in tourism that followed in 2007. The loan was assumed in May 2007, and full-year 2007 financial reporting was not available. We expect the performance of this loan to improve in the future," S&P says. Standard & Poor's stressed the loans on the watchlist and the other loans with credit issues as part of its analysis. The resultant credit enhancement levels support the affirmed ratings. RATINGS AFFIRMED Banc of America Commercial Mortgage Trust 2006-1 Commercial mortgage pass-through certificates Class Rating Credit enhancement (%) ----- ------ ---------------------- A-1 AAA 30.46 A-1-A AAA 30.46 A-2 AAA 30.46 A-3A AAA 30.46 A-3B AAA 30.46 A-4 AAA 30.46 A-SBFL AAA 30.46 A-M AAA 20.31 A-J AAA 13.20 B AA+ 12.18 C AA 11.04 D AA- 10.03 E A 8.25 F A- 7.23 G BBB+ 5.96 H BBB 4.82 J BBB- 3.43 K BB+ 3.05 L BB 2.54 M BB- 2.16 N B+ 2.03 O B 1.78 P B- 1.40 XC AAA N/A XP AAA N/A N/A -- Not applicable. BARBEQUES GALORE: Gets Court's Nod to Use $3 Million DIP Financing ------------------------------------------------------------------ Judge Maureen Tighe of the U.S. Bankruptcy Court for the Central District of California has authorized Barbeques Galore Inc. to use a $3 million portion of a debtor-in-possession loan from its senior lender Wells Fargo Retail Finance LLC, Ben Fidler of The Deal reports. The Court will hold a final hearing to consider the Debtor's DIP financing motion Sept. 15, 2008, The Deal says. Headquartered in Carlsbad, California, Barbeques Galore Inc., sells barbecues and accessories in its 65 stores across the United States. The company has at least 400 employees. The Debtor filed for Chapter 11 on Aug. 15, 2008, (Bank. C.D. Calif. Case No.: 08-16036). Jeffrey W. Dulberg, Esq., at Pachulski Stang Ziehl & Jones LLP, represents the Debtor in its restructuring efforts. The Debtor listed estimated assets of $10 million to $50 million, and estimated debts of $10 million to $50 million. BAYWOOD INTERNATIONAL: Posts $559,443 Net Loss in 2008 2nd Quarter ------------------------------------------------------------------ Baywood International Inc. reported a net loss of $559,443 on net sales of $3,399,422 for the second quarter ended June 30, 2008, compared with a net loss of $770,187 on net sales of $3,206,550 in the same period last year. The increase in net sales from the prior quarter is primarily due to the introduction of new products under the company's LifeTime(R) brand. Operating expenses for the second quarter ended June 30, 2008, were $1,632,113, compared to $1,486,769 for the same period last year, an increase of $145,344, or 9.8%. Debt financing cost for the three month period ended June 30, 2008, was $348,672 compared to $978,223 for the same period last year. The company is in technical default on certain financial covenants with Vineyard Bank. In the coming months, management believes it can remedy these technical defaults through renegotiation, waivers, pay down of indebtedness or issuance of equity capital. Vineyard Bank has not demanded payment under these obligations. During 2006, the company extended payment terms with certain vendors and borrowed funds from certain officers and directors. In addition, certain officers elected to defer the payment of their salaries or convert their salaries to equity to conserve cash. These deferred salaries have been accrued. The company intends to pay these loans and deferred salaries in the future when it is able to generate an increased level of cash flows. Certain of these loans were converted to common stock during the year ended Dec. 31, 2007. At June 30, 2008, the company's consolidated balance sheet showed $13,057,856 in total assets, $10,304,869 in total liabilities, and $2,752,987 in total stockholders' equity. The company's consolidated balance sheet at June 30, 2008, also showed strained liquidity with $3,136,904 in total current assets available to pay $9,456,099 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2008, are available for free at http://researcharchives.com/t/s?3138 Going Concern Doubt Malone & Bailey, PC, in Houston, expressed substantial doubt about Baywood International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses from operations and working capital deficiency. About Baywood International Headquartered in Scottsdale, Ariz., Baywood International Inc. (OTC BB: BYWD) -- http://www.bywd.com/-- is a nutraceutical company specializing in the development, marketing and distribution of nutraceutical products under the LifeTime(R) and Baywood brands. BOSCOV'S INC: Section 341(a) Meeting Scheduled for September 12 --------------------------------------------------------------- Roberta A. DeAngelis, Acting United States Trustee for Region 3, will convene a meeting of creditors of Boscov's Inc., and its seven debtor affiliates on Sept. 12, 2008, at 11:00 a.m., 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 Debtor's bankruptcy cases. Attendance by the Debtor's creditors at the meeting is welcome, but not required. The Sec. 341(a) meeting offers the creditors a one-time opportunity to examine the Debtor's representative under oath about the Debtor's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Reading, Pennsylvania, Boscov's Inc. -- http://www.boscovs.com-- is America's largest family-owned independent department store, with 49 stores in Pennsylvania, New York, New Jersey, Maryland, Delaware and Virginia. Boscov's Inc. and its debtor-affiliates filed for Chapter 11 protection on Aug. 4, 2008 (Bankr. D. Del. Case No.: 08-11637) Daniel J. DeFranceschi, Esq. at Richards Layton & Finger and L. Katherine Good, Esq. at Richards, Layton & Finger, P.A. represent the Debtors in their restructuring efforts. The Debtors' financial advisor is Capstone Advisory Group and their investment banker is Lehman Brothers Inc. The Debtors disclosed estimated assets of $500 million to $1 billion and estimated debts of $100 million to $500 million. (Boscov's Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BRIAN WARREN: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Brian Colin Warren Patricia Warren 4503 Nashua Ct Rocklin, CA 95765 Bankruptcy Case No.: 08-31697 Chapter 11 Petition Date: August 21, 2008 Court: Eastern District of California (Sacramento) Judge: Robert S. Bardwil Debtor's Counsel: W. Steven Shumway 2140 Professional Dr #250 Roseville, CA 95661 Telephone (916) 789-8821 Total Assets: $1,128,620 Total Debts: $2,606,705 A copy of Debtor's petition and a list of its 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/caeb08-31697.pdf BSML INC: June 28 Balance Sheet Upside-Down by $2.4 Million ----------------------------------------------------------- BSML Inc.'s consolidated balance sheet at June 28, 2008, showed $5.8 million in total assets and $8.2 million in total liabilities, resulting in a $2.4 million stockholders' deficit. At June 28, 2008, the company's consolidated balance sheet also showed strained liquidity with $1.8 million in total current assets available to pay $7.5 million in total current liabilities. The company reported a net loss of $695,000 for the second quarter ended June 28, 2008, compared with a net loss of $704,000 in the same period ended June 30, 2007. Total revenues declined 36%, to $4.3 million in the second quarter of 2008 compared to $6.8 million in the second quarter of 2007. Whitening revenues declined to $3.3 million in the second quarter of 2008 compared to $4.4 million in the second quarter of 2007. Selling, general and administrative expenses decreased to $1.4 million in the second quarter of 2008 from $3.7 million in the second quarter of 2007. This decrease was primarily due to the company's continued downsizing activities as well as a decrease in advertising and professional fees. Full-text copies of the company's consolidated financial statements for the quarter ended June 28, 2008, are available for free at http://researcharchives.com/t/s?3118 Going Concern Doubt Stonefield Josephson Inc., in Los Angeles, California, expressed substantial doubt about BSML Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 29, 2007. To date, the company has yet to achieve profitability. The company had an accumulated deficit of $177.9 million and working capital deficiency of $5.7 million as of June 28, 2008. The company's net loss and net cash used by operating activities were $1.3 million and $5.0 million, respectively, for the twenty-six weeks ended June 28, 2008. At June 28, 2008, the company had $243,000 in unrestricted cash and cash equivalents. The company is not certain if its cash will be sufficient to maintain operations of the continuing company at least through the next year due to the uncertainty of the company's ability to generate positive cash flow from the Centers business operations. About BSML Inc. Based in Walnut Creek, California, BSML Inc. (NasdaqCM: BSML) -- http://www.britesmile.com/-- markets teeth whitening technology and manages BriteSmile Professional Teeth Whitening Centers. BUCKHEAD OIL: Court Okays Appointment of Chapter 11 Trustee ----------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Georgia ordered the U.S. Trustee for Region 21 to appoint a Chapter 11 Trustee to oversee Buckhead Oil Company, Inc.'s Chapter 11 case. Mansfield Oil Company of Gainesville Inc., a creditor of Buckhead Oil, made the request. The Chapter 11 trustee will administer the assets and manage the properties of the Debtor. Mansfield also asked the Court to, as an alternative, convert the Debtor's case to a Chapter 7 liquidation proceeding. Mansfield claimed that the Debtor's management is incompetent and dishonest and the affairs of the Debtor have been grossly mismanaged. Mansfield contended that the Debtor's storage of diesel fuel in canvas bladders constitutes a serious violation of the Georgia Safety Fire Commissioner's Rules and Regulations for Flammable and Combustible Liquids and that the Debtor has no permits and licenses necessary to store fuel in above-ground storage tanks. Mansfield also said that the Debtor lacks an ongoing business as required by Chapter 11 as its income is insufficient. The Debtor admitted it has no suppliers for further purchases of fuel. The Debtor said that it lacks the realistic possibility of effective reorganization. Moreover, Mansfield argued that the Debtor's timing in filing its voluntary petition evidences an intent to frustrate creditors in enforcing their reclamation rights. Thus, the Court ordered that Debtor and its officers and agents cooperate with the Chapter 11 trustee, and turn over all records and property of the estate in their possession or control as directed by the trustee. McDonough, Georgia-based Buckhead Oil Company, Inc., filed for Chapter 11 protection on July 3, 2008 (Bankr. N.D. Ga. Case No. 08-72829). Gregory D. Ellis, Esq., represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and estimated debts of $1 million to $100 million. BUILDING MATERIALS: Post $66MM Net Loss in Period Ended June 30 --------------------------------------------------------------- Building Materials Holding Corporation reported net loss for the second quarter of 2008 was $31.9 million compared to net income of $19.4 million in the same quarter a year ago. For the six months ended June 30, 2008, net loss was $65.8 million compared to net income of $14.5 million in the same period of 2007. The company reported that sales for the second quarter of 2008 decreased 41% to $385 million from $656 million in the same quarter a year ago. For the six months ended June 30, 2008, sales decreased 38% to $728 million from $1.2 billion in the same period of 2007. The company related that consistent with the national weakness in new home construction, sales were lower in all its regions. Single-family building permits in the U.S. were down 43% for the quarter. Loss from continuing operations was offset by lower selling, general and administrative expenses. Despite the additional expense of $5.8 million to exit certain operating leases and other charges, selling, general and administrative expenses were $8.5 million lower for the quarter and $31.8 million lower for the six months compared to the same periods a year ago. At June 30, 2008, the company's balance sheet showed total assets of $833.5 million total liabilities of $646.2 million and shareholders' equity of $187.3 million. About Building Materials Holding Corporation Based in San Francisco, California, Building Materials Holding Corporation (NYSE:BLG) -- http://www.bmhc.com-- provides residential construction services and building products to professional homebuilders and contractors in western and southern regions of the United States. It operates through two business segments: SelectBuild and BMC West. SelectBuild provides framing and other construction services to high-volume homebuilders in key markets. BMC West markets and sells building materials, manufactures building components and provides construction services to professional builders and contractors through a network of 41 distribution facilities and 60 manufacturing facilities. It provides construction services and building products in 16 single-family residential construction markets. In November 2006, SelectBuild acquired the remaining 49% interest in BBP companies. In March 2007, BMHC's subsidiary, SelectBuild Construction Inc., acquired the remaining 27% of Riggs Plumbing LLC. * * * As reported in the Troubled Company Reporter on Aug. 13, 2008, Standard & Poor's Ratings Services lowered its ratings on San Francisco, Ca.-based Building Materials Holding Corp., including the corporate credit rating, to 'CCC+' from 'B-'. The ratings remain on CreditWatch with negative implications, where S&P placed them on July 30, 2008. C-BASS XVIII: Fitch Cuts & Removes 5 Classes from Watch Negative ---------------------------------------------------------------- Fitch downgrades and removes from Rating Watch Negative five classes of notes issued by C-BASS CBO XVIII Ltd. These rating actions are effective immediately: -- $337,598,533 class A-1 notes to 'CCC' from 'BB-'; -- $146,357,746 class A-2 notes to 'CCC' from 'BB-'; -- $46,500,000 class B notes to 'CC' from 'B+'; -- $12,700,000 class C notes to 'C' from 'B-'; -- $17,640,000 class D notes to 'C' from 'CCC'. Fitch's rating actions reflect the significant collateral deterioration within the portfolio, specifically in subprime residential mortgage backed securities. C-BASS XVIII is a static cash structured finance collateralized debt obligation that closed on March 13, 2007, and is managed by C-BASS Investment Management LLC. Presently 74% of the portfolio is comprised U.S. subprime RMBS, 14.34% Alternative-A RMBS, 4.43% Prime RMBS, 3.9% asset backed securities, 2.4% manufactured housing and 0.9% commercial mortgage backed securities. Since Nov. 21, 2007, approximately 65.5% of the portfolio has been downgraded with 20.6% of the portfolio currently on Rating Watch Negative. Of the portfolio, 70% is now rated below investment grade, with 60.8% of the portfolio rated 'CCC+' or below. Overall, 77.1% of the assets in the portfolio now carry a rating below the rating assumed in Fitch's November 2007 review. The collateral deterioration has caused each of the overcollateralization and interest coverage ratios to fall below 100% and fail their respective triggers. As of the trustee report dated July 31, 2008, the class A/B OC ratio was 76%, the class C OC ratio was 74.1% and the class D OC ratio was 71.6%. Pursuant to the Indenture, interest payments received from assets that are deemed to be defaulted based on their current rating, are treated as principal proceeds. As a result, on the June 2008 payment date, interest proceeds were insufficient to make current interest payments on the class A-1, A-2 and B notes and as a result principal proceeds were used. Principal proceeds remaining after paying unpaid interest to the class A-1, A-2 and B notes were then used to redeem the class A-1 and A-2 notes pro rata. The class C and D notes began deferring interest in December 2007 and interest payments are not expected to be reinstated. Going forward, Fitch expects only the class A-1 and A-2 notes to receive principal distributions. The downgrades to the rated notes reflect Fitch's updated view of the default risk associated with each of the notes. Fitch is reviewing its SF CDO approach and will comment separately on any changes and potential rating impact at a later date. Fitch will continue to monitor and review this transaction for future rating adjustments. CA INC: Fitch Revises Outlook to Positive; Affirms IDR at 'BB+ -------------------------------------------------------------- Fitch Ratings has revised CA Inc.'s Rating Outlook to Positive from Stable. These ratings are affirmed: -- Issuer default rating at 'BB+'; -- Senior unsecured revolving credit facility at 'BB+'; -- Senior unsecured debt at 'BB+'. Fitch's actions affect approximately $2.5 billion of total debt, including the company's $1 billion revolving credit facility. The Positive Outlook reflects the continued improvement in the company's credit metrics and strong financial results. CA's credit protection measures have strengthened, particularly leverage, driven by both growth in operating profits as well as debt reduction. Fitch estimates that total debt/last 12 months (LTM) Operating EBITDA was 1.5 times as of company's fiscal second-quarter 2009 (ended June 30, 2008), versus 2.3x at fiscal 2Q08. In addition, CA's recent operating and financial results are trending positively, evidenced by solid top-line growth, margin improvement, and strong free cash flow. R esults have been supported by the company's recurring revenue model, which has heretofore limited the negative impacts of the less favorable macroeconomic environment and which Fitch expects will continue to be the case. The ratings consider that CA has become more conservative over the last two years, as the company has curtailed acquisitions and share repurchases and has undertaken moderate debt reduction. Fitch believes that the company's policies will remain fairly conservative over the intermediate term and that CA would utilize its financial flexibility provided by excess cash and free cash flow to finance acquisition, dividend, or share buyback activity. While Fitch anticipates the company will refinance $960 million of debt maturing in December 2009, Fitch believes that CA is likely to retain excess liquidity over the near term to potentially meet these obligations with cash on hand, given current market conditions. Fitch believes that significant near-term acquisition activity appears limited given management's current focus on integrating previous acquisitions and improving operating efficiency. Positive rating actions could occur if: -- No significant capital structure changes occur over the next year with acquisition and share buyback activity largely financed with excess cash on hand and free cash flow; -- CA's recurring revenue model continues to shelter the company from financial stress due to the economic downturn, particularly in the U.S.; -- There is evidence of the company's ability to repay or refinance its 2009 maturities, given that approximately 65% of the cash on hand is located outside the U.S., and a significant amount of free cash flow is generated overseas. Ratings concerns center on whether CA will maintain a consistent approach to its financial strategy over the long term, despite Fitch's comfort with the company's intermediate-term policies. Additional concerns include competition from larger companies with superior financial flexibility. Finally, Fitch believes the company's lack of participation in the software industry's ongoing consolidation activity could constrain longer term revenue growth rates. The ratings continue to be supported by CA's: solid recurring revenue profile, driven by the high barriers to entry with significant 'switching' costs associated with the software industry; consistent annual free cash flow approximating $750 million to $1 billion; and the size, diversity, and quality of the company's installed base (approximately 98% of Fortune 500) and depth of product line. Credit protection measures are strong for the rating category and Fitch expects that they could improve over the intermediate term from operating profit growth and, less likely, debt reduction. Fitch believes liquidity at June 30, 2008 was sufficient and supported by: approximately $2.4 billion of cash and cash equivalents (approximately 65% overseas); $1 billion senior unsecured RCF due August 2012, of which $250 million is undrawn and available; and the aforementioned consistent annual free cash flow. Free cash flow for fiscal 2009 ending March 31, 2009 is anticipated to be affected slightly by cash restructuring and higher cash tax payments but should increase going forward as the company's restructuring initiatives begin to translate into higher profitability. Total debt as of June 30, 2008 was approximately $2.2 billion, consisting primarily of: $750 million of borrowings outstanding under the company's RCF; $460 million convertible senior notes due December 2009, which have a conversion price of $20.04 per share; $500 million senior notes due December 2009; and $500 million senior notes due 2014. CASALE MARBLE: Court Okays Paul L. Orshan as Bankruptcy Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida gave Casale Marble Imports, Inc., authority to employ Paul L. Orshan, P.A. as its bankruptcy counsel. Paul L. Orshan is expected to provide advice to the Debtor with respect to its powers and duties as a debtor-in-possession and the continued management of its business operations, to advice the Debtor with respect to its responsibilities in complying with the U.S. Trustee's Operating Guidelines and Reporting Requirements and with the rules of the Court, and to represent the Debtor in negotiation with its creditors in the preparation of a plan of reorganization. Mr. Orshan told the Court that his firm will charge the Debtor these hourly rates: Paul L. Orshan $400 Paralegal $100 Mr. Oshan assured the Court that the firm does not represent any interest adverse to the Debtor's estates. Delray Beach, Florida-based Casale Marble Imports, Inc. -- http://www.casalemarble.net/-- is a stone supplier. It operates a 16,000 sq. ft. facility and hired 168 workers in 2007. The Debtor currently has about 80 workers. The company filed for Chapter 11 protection on July 14, 2008 (Bankr. S.D. Fla. Case No. 08-19689). Paul L. Orshan, Esq., represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed estimated assets of $10,000,000 to $50,000,000 and estimated debts of $10,000,000 to $50,000,000. RBC Centura Bank, of Toranto, is the Debtor's largest secured creditor and is owed $8.4 million. The Debtor's assets are currently valued at about $16.2 million. C-BASS XIX: Fitch Downgrades 5 Classes; Off Rating Watch Negative ----------------------------------------------------------------- Fitch has downgraded and removed from Rating Watch Negative five classes of notes issued by C-BASS CBO XIX Ltd. These rating actions are the result of Fitch's review process and are effective immediately: -- $277,495,224 Class A-1 Notes downgraded to 'CCC' from 'BBB-' and removed from Rating Watch Negative; -- $100,000,000 Class A-2 Notes downgraded to 'CC' from 'BB' and removed from Rating Watch Negative; -- $42,000,000 Class B Notes downgraded to 'CC' from 'B+' and removed from Rating Watch Negative; -- $23,000,000 Class C Notes downgraded to 'C' from 'B-' and removed from Rating Watch Negative; -- $9,960,000.00 Class D Notes downgraded to 'C' from 'CCC' and removed from Rating Watch Negative. Fitch's rating actions reflect the collateral deterioration within the portfolio, specifically subprime residential mortgage backed securities, and structured finance collateralized debt obligations (CDO) with underlying exposure to subprime RMBS. C-BASS XIX is a static CDO, which closed on June 28, 2007, and is managed by C-BASS Investment Management LLC. Presently, 75.1% of the portfolio is comprised of 2005, 2006 and 2007 vintage U.S. subprime RMBS, 10.9% is comprised of 2005, 2006, and 2007 vintage U.S. Alternative-A RMBS, and 3.7% consists of 2006, and 2007 vintage U.S. SF CDOs. Additionally, 4.3% of the portfolio is comprised of prime RMBS and 4.1% of the portfolio consists of commercial asset-backed securities. Since the last rating action in November 2007, 62.6% of the portfolio has been downgraded with an additional 19.8% of the portfolio currently on Rating Watch Negative. Approximately 69% of the portfolio is now rated below investment grade, of which 60.1% is rated 'CCC+' or below. As per the latest trustee report dated July 31, 2008, defaulted and deferred interest payment in kind securities constituted 29%, or $142.3 million, of the portfolio total. The negative credit migration experienced since the last review has resulted in the Weighted Average Rating Factor deteriorating to 'B+' as of the last trustee report from 'BBB/BBB-'during the last review, breaching its covenant of 'BB/BB-'. The collateral deterioration has caused each of the overcollateralization and interest coverage ratios to fall below their respective trigger levels. As of the latest trustee report, the Class A/B OC ratio was 84.6%, the Class C OC ratio was 80.0%, and the Class D OC ratio was 78.2% versus triggers of 110.21%, 105.41%, and 104.07%, respectively. The Class A/B IC ratio was 73.0%, the Class C IC ratio was 67.1%, and the Class D IC ratio was 63.6% versus triggers of 110.0%, 109.0%, and 102.0%, respectively. At present, the transaction continues to make scheduled quarterly interest distributions to the class A-1, A-2, and B notes. Pursuant to the indenture, interest payments received from assets that are deemed to be defaulted based on their current rating are treated as principal proceeds. As a result, on the July 7, 2008, payment date, a portion of the interest distribution to the class B notes was made using principal proceeds. Fitch expects only the class A-1 notes to receive future principal distributions. The class A-2 and B notes have little prospect of any principal recovery. The class C and D notes are currently not receiving any interest or principal payments. Fitch does not expect these classes to receive any payments in the future. The ratings on the class A-1, A-2, and B notes address the timely receipt of scheduled interest payments and the ultimate receipt of principal as per the transaction's governing documents. The ratings on the class C and D notes address the ultimate receipt of interest payments and of principal as per the transaction's governing documents. The ratings are based upon the capital structure of the transaction, the quality of the collateral, and the protections incorporated within the structure. Fitch is reviewing its SF CDO approach and will comment separately on any changes and potential rating impact at a later date. Fitch will continue to monitor and review this transaction for future rating adjustments. CCS MEDICAL: S&P Cuts Sr. Secured Debt Rating to 'B' ---------------------------------------------------- Standard & Poor's Rating Services revised the outlook on Clearwater, Fla.-based CCS Medical to negative from positive. The corporate credit rating remains 'B-'. At the same time, Standard & Poor's lowered its issue-level rating on the company's senior secured debt to 'B' from 'B+' (one notch above the 'B-' corporate credit rating) while the recovery rating on the company's senior secured debt was revised to '2' from '1', indicating S&P's expectation for substantial (70%-90%) recovery for secured lenders in the event of a payment default. "The outlook revision reflects that for the second quarter ended June 30, 2008, CCS' revenues were about 10% below plan and margins were 100 basis points below budget," said Standard & Poor's credit analyst Michael Berrian. "The unfavorable results were primarily the result of competitive pressures and the loss of a major marketing agreement in the Sanvita segment." To a lesser extent, the variation from plan was caused by lower than expected growth rates in the diabetes segment; CCS is being affected by increased competition from existing players and, because of relatively low barriers to entry, new entrants into the market. Further, confusion surrounding the now-delayed competitive bidding program led to fewer referrals, customer loss, and lower sales in the weeks preceding, and the two weeks following, the program's launch. Also, reimbursement pressures and product cost increases in the insulin product line hurt profitability. The outlook is negative. Current industry challenges have resulted in lower-than-expected sales and pressured financial covenants. Moreover, S&P expects bad debt expense, which was higher relative to projections in the second quarter, to remain a challenge for the company in the near-to-medium term as the current weak economy impacts the company's ability to collect on patient accounts receivable. Still, S&P expects the company to generate free operating cash flow. However, if the effect of economic weakness on margins and bad debts causes the company to violate its interest coverage covenant, the rating could be lowered. On the other hand, if CCS Medical is able to attract and retain its diabetes customers and yield improved results from existing marketing agreements in the Sanvita segment, it could allow the company to stem its margin erosion and provide a cushion of at least one-half turn under its interest coverage covenant that would remove some of the credit pressure. CHEMTURA CORP: S&P Affirms 'BB' Ratings Affirmed; Off Watch ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' corporate credit and senior unsecured debt ratings on Chemtura Corp. and removed the ratings from CreditWatch with negative implications, where they were placed on July 8, 2008. The company's $500 million 6.75% notes due 2016, $400 million 7% notes due 2009 (issued by Great Lakes Chemical Corp., a subsidiary of Chemtura), and $150 million 6.875% debentures due 2026 (issued by Witco Corp., a subsidiary of Chemtura) are rated 'BB' (the same as the corporate credit rating). S&P assigned a recovery rating of '4' to all three debt issues. These ratings indicate S&P's expectation for average (30% to 50%) recovery in the event of a payment default. "The rating actions incorporate the company's improved earnings performance for the second quarter of 2008 compared to the similar period of the prior year and our expectation that credit measures should maintain an improving trend," said Standard & Poor's credit analyst Liley Mehta. Chemtura's earnings for the quarter ended June 30, 2008, reflect improved performance in the performance specialties and crop protection segments offset by higher raw material and energy costs and weaker earnings in the consumer products segment due to a wet, cold start to the U.S. pool season. The outlook is negative. Credit quality is supported by an improved focus on price/volume strategy, and the benefits of cost- cutting initiatives and the portfolio review completed in the past few years. Any meaningful disappointment in financial results for the next several quarters, coupled with reduced discretionary cash flows, would not bode well for the expected strengthening of the key funds from operations to adjusted debt ratio and could result in a lower rating. On this point, deterioration to the 15% level would result in a review for downgrade. "We expect the company to take timely steps to address refinancing risks related to the $400 million notes maturing in 2009 and the revolving credit facility due in 2010, in light of difficult credit market conditions. Acquisitions that meaningfully diminish the company's liquidity and slow the strengthening of financial measures would also weaken support for the current ratings. Similarly, any proceeds from asset sales are expected to be used in a manner that preserves an appropriate capital structure. To reduce the risk of a downgrade, we would expect Chemtura to expand the leverage ratio covenant cushion, further strengthen the funds from operations to total debt ratio, and successfully extend near- term debt maturities," S&P says. The ratings on Chemtura incorporate some vulnerability of its operating results to competitive pricing pressures, raw material costs, and cyclical markets. They also reflect weak cash flow protection measures as a result of poor profitability in certain businesses. These factors are tempered by a diversified portfolio of specialty and industrial chemical businesses (generating annual revenues of roughly $3.7 billion). CHRYSLER LLC: Auto Makers Seeking Up to $50BB in Lifeline --------------------------------------------------------- Sharon Terlep and Josh Mitchell of the Wall Street Journal report that The Big Three auto makers and their suppliers are now seeking significantly more help from the federal government. The Detroit Free Press reported earlier in August that top executives at Ford Motor Co., General Motors Corp., and Chrysler LLC had a meeting and decided to ask for financial aid from the feds. There is no consensus as to how much do auto executives want, people familiar with the talks say, according to the report. But reports say it could be between $40 billion and $50 billion. The auto makers would like to have a funded plan in place by the end of 2008. The companies have already been authorized to receive $25 billion government-backed loans approved as part of an energy bill last year. The loans have yet to be funded. David Cole, president of the Center of Automotive Research in Ann Arbor, Mich., denied the funding is a bailout in its entirety, according to WSJ. "This is actually more like the government acting like a banker as it begins to look at the major consequences of a major failure in the auto industry," he said. The current funding is reportedly aimed at making the Big Three more competitive. Despite reassurance from the company, rumors that Chrysler is on the verge of bankruptcy persist. According to various reports, JPMorgan auto analyst Himanshut Patel has indicated that Chrysler is the weakest player among the U.S. automakers and is at the most risk of bankruptcy. Chrysler, the JPMorgan analyst has said, is hit by the triple force of high pump prices, an economic slowdown and an expected decline in sales of trucks. Mr. Patel has suggested that Chrysler sell its Jeep and Dodge Ram brands by early 2009. The reports note that Mr. Patel believes Chrysler's position is riskier because it has lesser assets to raise money and relies heavily on the truck and U.S. markets for income. Mark Warnsman, an analyst from Calyon Securities, however, has said concerns of Chrysler's possible bankruptcy are overblown, Andrew Striber of Motor Trend reports. Instead of worrying whether Auburn Hills will go under, competitors should be more concerned about the company's recent actions will hurt the overall auto market, he said. Chrysler has dropped leasing and switched to retail-only sales. It also announced an additional 1,500 job cuts, the elimination of four models, and discussions of a partnership with Nissan to outsource future midsize sedans. Mr. Warnsman says Chrysler's "potential for sharp changes" poses a new threat to competitors, and with no shareholders to report to its secrecy will bring "more uncertainty for the industry." This could scare off investors and push the value of publicly-traded rivals Ford and GM down even further, according to him. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of $145,741,000,000 and total debts of $186,784,000,000, resulting in a stockholders' deficit of $41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and $4,558,000,000, respectively. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. About Ford Motor Co 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 Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects these: (i) the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; (ii) portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and (iii) escalating commodity costs that will remain a significant offset to cost reduction efforts. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Aug. 11, 2008, Standard & Poor's Ratings Services said lowered its ratings on Chrysler LLC, including the corporate credit rating, to 'CCC+' from 'B-'. On July 31, 2008, TCR said that Fitch Ratings has downgraded the Issuer Default Rating of Chrysler LLC to 'CCC' from 'B-'. The Rating Outlook is Negative. The downgrade reflects Chrysler's restricted access to economic retail financing for its vehicles, which is expected to result in a further step-down in retail volumes. Lack of competitive financing is also expected to result in more costly subvention payments and other forms of sales incentives. Fitch is also concerned with the state of the securitization market and the ability of the automakers to access this market on an economic basis over the near term, given the steep drop in residual values, higher default rates, higher loss severity being experienced and jittery capital market. COACH AMERICA: S&P Affirms 'B-' Credit Rating; Outlook Stable ------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Coach America Holdings Inc. to stable from negative. "We affirmed our ratings on Coach America, including the 'B-' long-term corporate credit rating," S&P says. "The outlook revision is based on Coach America's recent improvement in operating performance and our view that these gains will be sustained over the next year," said Standard & Poor's credit analyst Funmi Afonja. "We believe that the company should continue to benefit from repricing of existing contracts, lucrative new contract wins, and a recent accretive acquisition." Earnings should also benefit from numerous cost-cutting measures, including closing or restructuring of underperforming locations, as well as efficiency and operational improvements. Still, even with further improvement, the financial profile will remain weak in absolute terms, given the company's heavy debt load. The ratings reflect Coach America's highly leveraged capital structure, limited room under financial covenants, and some vulnerability to economic and competitive pressures. Positive credit factors include the company's significant market position (albeit in highly fragmented markets), geographic and customer diversity, and contractual arrangements with certain customers (which provide some stability to revenues and earnings). Dallas-based Coach America is the largest charter bus operator and the second-largest motorcoach services provider in the U.S. Coach America operates buses under the Coach USA brand name as well as the Gray Line and American Coach Lines brand names. Coach America maintains the leading position in most of the markets in which it competes, but faces competition from many smaller, local players. Coach America operates several business segments: contract services (in which the company provides commuter, work, or school- related transportation); rail crew services (in which the company transports rail crews to and from work); charter services; and other miscellaneous bus transportation services. Demand for the company's services is affected by economic and competitive conditions in its various markets, with the charter business being more vulnerable to cyclical pressures than the contract business. Offsetting these challenges to some degree is the company's diverse customer and geographic base, its ability to move equipment to meet changing demand patterns, its somewhat flexible cost structure, contractual arrangements which cover a majority of revenues, and a trend toward increased outsourcing of transportation services by many companies. As a transportation company, Coach America is exposed to rises in fuel prices. However, a majority of its revenues are covered by some form of fuel-recovery mechanism (either pass-through provisions or surcharges). "The outlook reflects Coach America's improvement in operating performance and our view that these gains will be sustained over the next year. We could revise the outlook to negative if the expected continued improvement in operating performance fails to materialize, raising liquidity and covenant compliance concerns over the next year. An outlook revision to positive is possible if continued operating gains cause adjusted debt to EBITDA to move below 6x," S&P says. COBALT CMBS: S&P Junks 2006-C1 Class O Rating --------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on six classes of commercial mortgage pass-through certificates from COBALT CMBS Commercial Mortgage Trust 2006-C1 and removed them from CreditWatch with negative implications, where they were placed on Aug. 21, 2008. "In addition, we affirmed the rating on one class and removed it from CreditWatch with negative implications, where it was also placed Aug. 21, 2008. Concurrently, we affirmed the ratings on the remaining classes from this transaction," S&P says. "The downgrades reflect the weakened performance of several loans in the pool, including four loans on the servicer's watchlist that reported debt service coverage (DSC) levels that were below 1.0x, and one loan that we project will have a DSC of less than 1.0x when its initial interest-only (IO) period ends. In addition, the credit risk associated with the eighth-largest loan in the pool has increased. This loan was transferred to the special servicer after the master-tenant lessee filed for bankruptcy," S&P relates. On August 21, 2008, S&P placed its ratings on the seven classes with negative implications: Rating Class To From Credit enhancement (%) ----- -- ---- ---------------------- H BBB-/Watch Neg BBB- 2.92 J BB+/Watch Neg BB+ 2.67 K BB/Watch Neg BB 2.28 L BB-/Watch Neg BB- 1.90 M B+/Watch Neg B+ 1.78 N B/Watch Neg B 1.52 O B-/Watch Neg B- 1.27 S&P explained that the CreditWatch placements reflect its preliminary analysis of the transaction's asset pool. During the analysis, S&P identified 18 loans with low debt service coverage (DSC), several of which are potential credit concerns. On average, these loans have experienced a weighted average DSC decline of 37.3% since issuance. The asset pool also includes several loans with interest-only periods that are expected to have low DSCs when their amortization periods begin. According to S&P, the affirmed ratings as of August 22 reflect credit enhancement levels that provide adequate support through various stress scenarios. There are 18 loans in the pool ($468.2 million; 18.6%) that reported DSC levels of less than 1.0x. These loans are secured primarily by a variety of office, retail, and multifamily properties, have an average balance of $26.0 million, and have experienced an average decline in DSC of 37% since issuance. Fourteen of the loans, however, are not considered credit concerns at this time due to improving occupancy, in-place reserves, and relatively low leverage. Four of the loans are credit concerns because they have experienced an average decline in DSC of 47% since issuance. These four loans are secured by three retail properties and one office property. The Fortress/Ryan's portfolio loan totaling $62.0 million (2.5%) is the only loan with the special servicer. This loan is secured by a first mortgage encumbering the 113 fee and 16 leasehold interests in a cross-collateralized portfolio of 129 Ryan's restaurant properties located in 22 states. The $62.0 million trust balance represents a pari passu interest in the $126.5 million whole loan. The other $64.5 million pari passu interest was securitized in the COMM 2006-C8 transaction. The properties are subject to a 20-year triple-net master lease with Buffets Holdings Inc., the parent company of Ryan's restaurants. The loan was transferred to the special servicer due to Buffets Holdings' January 2008 bankruptcy filing. The loan is current. On July 30, 2008, a U.S. bankruptcy judge said the borrower and Buffets Holdings should create a process for an orderly transition of the restaurants to the borrower. Subsequently, the borrower and the tenant commenced discussions regarding a possible amendment to the master lease whereby the tenant would continue to operate the restaurants. Standard & Poor's estimated value for the portfolio has declined since issuance. The loan no longer has credit characteristics consistent with an investment-grade obligation. As of the Aug. 15, 2008, remittance report, the collateral pool consisted of 166 loans with an aggregate balance of $2.52 billion, down from 167 loans with a balance of $2.57 billion at issuance. The master servicer, Wachovia Bank N.A. (Wachovia), reported financial information for 91.7% of the mortgage pool, and 91.3% of the servicer-provided information was full-year 2007 data. Standard & Poor's calculated a weighted average DSC of 1.29x for the pool, compared with 1.40x at issuance. To date, the trust has not experienced any losses. The top 10 loans have an aggregate outstanding balance of $887.5 million (36.2%) and a weighted average DSC of 1.43x, down from 1.56x at issuance. The second-, fourth-, and ninth-largest loans are on the servicer's watchlist. The master servicer provided property inspections for seven of the top 10 loan exposures. One was characterized as "fair" and the other six properties were characterized as "good." The credit characteristics of the Ala Moana portfolio (8.9%), Manoa Marketplace (0.8%), Wesco Self Storage (0.4%), Cerritos Nissan (0.2%), and Amarillo Land Lease (0.1%) loans are consistent with those of investment-grade obligations. The Ala Moana portfolio loan, which is the largest exposure in the pool, has a trust balance of $200.0 million and a whole-loan balance of $1.5 billion. The whole loan is secured by the fee and leasehold interest in four properties: a regional mall, two office buildings, and a retail property located in Honolulu, Hawaii. The reported combined DSC for this loan was 1.59x as of year-end 2007, and occupancy was 97.1%, compared with a DSC of 1.81x and occupancy of 96.0% at issuance. The underwritten net cash flow (NCF) at issuance was based on the completion and full lease-up of 300,000 sq. ft. of expansion space. Standard & Poor's adjusted value for this loan is comparable to its level at issuance. Wachovia reported a watchlist of 24 loans with an aggregate outstanding balance of $535.1 million (21.3%). The Continental Towers loan is the largest loan on Wachovia's watchlist and the second-largest loan in the pool. The loan is secured by three 12- story office buildings totaling 932,854-sq.-ft. and one three- story retail concourse located in Rolling Meadows, Ill. The loan was placed on the watchlist because occupancy fell to 76.1% as of Dec. 31, 2007, from 90.2% at issuance. The low occupancy rate was the result of Ameriquest Mortgage terminating the lease on half of its space. Citigroup Inc., which bought Ameriquest's assets in 2007, has assumed the lease for the remaining space. Several new leases totaling 33,163 sq. ft. have been signed since the Ameriquest lease termination, which will bring the building's physical occupancy to nearly 80% by October 2008. The 311 South Wacker loan is the second-largest loan on Wachovia's watchlist and the fourth-largest loan in the pool. The loan is secured by the fee interest in a 1,281,000-sq.-ft., 65-story, class A office building in downtown Chicago, Ill. The loan was placed on the watchlist because reported DSC had dropped to 0.66x as of Dec. 31, 2007. As of March 31, 2008, however, DSC was 1.04x. At issuance, occupancy at the property was 71.3% because of recent lease expirations. The property has undergone significant leasing since issuance, and occupancy was 84.0% as of March 31, 2008. The Timberlake and Glades Apartments portfolio loan is the third- largest loan on Wachovia's watchlist and the ninth-largest loan in the pool. This loan is secured by the fee interest in two adjacent multifamily properties in Altamonte Springs, Fla. that have a total of 876 units. The loan was placed on the watchlist because occupancy had dropped to 81% as of Dec. 31, 2007, from 95% at issuance. Occupancy at the property dropped when several units were taken off line for extensive renovations. Reported occupancy as of March 31, 2008 was back up to 92.9%. Standard & Poor's stressed the loans on the watchlist, along with other loans with credit issues, as part of its pool analysis. The resultant credit enhancement levels support the lowered and affirmed ratings. RATINGS LOWERED AND REMOVED FROM CREDITWATCH NEGATIVE COBALT CMBS Commercial Mortgage Trust 2006-C1 Commercial mortgage pass-through certificates series 2006-C1 Rating Class To From Credit enhancement (%) ----- -- ---- ---------------------- J BB BB+/Watch Neg 2.66 K BB- BB/Watch Neg 2.28 L B+ BB-/Watch Neg 1.90 M B B+/Watch Neg 1.78 N B- B/Watch Neg 1.52 O CCC+ B-/Watch Neg 1.27 RATING AFFIRMED AND REMOVED FROM CREDITWATCH NEGATIVE COBALT CMBS Commercial Mortgage Trust 2006-C1 Commercial mortgage pass-through certificates series 2006-C1 Rating Class To From Credit enhancement (%) ----- -- ---- ---------------------- H BBB- BBB-/Watch Neg 2.92 RATINGS AFFIRMED COBALT CMBS Commercial Mortgage Trust 2006-C1 Commercial mortgage pass-through certificates series 2006-C1 Class Rating Credit enhancement (%) ----- ------ ---------------------- A-1 AAA 30.46 A-2 AAA 30.46 A-AB AAA 30.46 A-3 AAA 30.46 A-4 AAA 30.46 A-1A AAA 30.46 A-M AAA 20.30 A-J AAA 11.93 B AA 9.90 C AA- 8.76 D A 7.36 E A- 6.47 F BBB+ 5.33 G BBB 4.31 IO AAA N/A N/A -- Not applicable. COLUMBIAN BANK: Kansas Bank Fails & FDIC is Appointed as Receiver ----------------------------------------------------------------- The Columbian Bank and Trust Company, Topeka, Kansas, was closed today by the Kansas Bank Commissioner J. Thomas Thull, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank and Trust, Chillicothe, Missouri, to assume the insured deposits of The Columbian Bank and Trust Company. The nine branches of The Columbian Bank and Trust Company will reopen on Monday as branches of Citizens Bank and Trust. Depositors of the failed bank will automatically become depositors of Citizens Bank and Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Over the weekend, customers of The Columbian Bank and Trust Company Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual. As of June 30, 2008, The Columbian Bank and Trust Company had total assets of $752 million and total deposits of $622 million, of which there were approximately $46 million in uninsured deposits held in approximately 610 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers. The Columbian Bank and Trust Company also had approximately $268 million in brokered deposits that are not part of today's transaction. The FDIC will pay the brokers directly for the amount of their insured funds. Customers with accounts in excess of $100,000 should contact the FDIC toll-free at 1-800-523-8209 to set up an appointment to discuss their deposits. This phone number will be operational this evening until 9:00 p.m. CST; on Saturday from 9:00 a.m. to 6:00 p.m. CST; on Sunday from 11:00 a.m. to 5:00 p.m.; and thereafter from 8:00 a.m. to 8:00 p.m. CST. Customers who would like more information on the transaction should visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/columbian.html Beginning Monday, depositors of The Columbian Bank and Trust Company with more than $100,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at http://www2.fdic.gov/dip/Index.aspto determine their insurance coverage. Citizens Bank and Trust agreed to assume the insured deposits for a 1.125% premium. It will also purchase $85.5 million of the failed bank's assets. The assets are comprised mainly of cash, cash equivalents and securities. The FDIC will retain the remaining assets for later disposition. The cost to the FDIC's Deposit Insurance Fund is estimated to be $60 million. The Columbian Bank and Trust Company is the first bank to fail in Kansas since Midland Bank of Kansas, Mission, Kansas, on April 2, 1993. This year, a total of nine FDIC-insured institutions have been closed. Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,494 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars -- insured financial institutions fund its operations. COOPER TIRE: S&P Affirms 'B+' Rating, Sees Slow Tire Demand ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Cooper Tire & Rubber Co. to negative from stable. "At the same time, we affirmed our 'B+' corporate credit rating and other ratings. The outlook revision reflects the effect of slowing tire demand in North America and volatile raw material prices on Cooper's financial risk profile. Although the company has been introducing premium products, reducing costs, and expanding its presence in Asia, we expect the company's credit measures to worsen during the remainder of 2008," S&P says. "As of June 30, 2008, Findlay, Ohio-based Cooper had total debt of $855.4 million, including our adjustments for operating leases and postretirement benefit obligations," S&P adds. "Cooper faces significant challenges that will impede its financial performance for the near term," said Standard & Poor's credit analyst Lawrence Orlowski. "Although revenues in the second quarter of 2008 increased by 6% compared to those of a year earlier, unit sales declined, and the company reported an operating loss of $15 million," he continued. In the U.S., Cooper's total unit sales of light-vehicle tires decreased 13.1% during the first half of 2008, worse than the 4.8% and 2.1% declines for Rubber Manufacturers Assn. members and the total industry, respectively. For all of North America, Cooper's unit sales fell about 7%. Industry sales volumes in North America are projected to be down during 2008 versus the same period in 2007. Moreover, raw material costs continue to rise, significantly pressuring operating income. In response, the company raised prices up to 5% in February and up to 8% in July. Another price increase of up to 10% is planned for October. "However, we do not expect these price increases to completely cover rising raw material costs, which the company expects to be up 25% to 30% versus 2007 costs," S&P says. Industry growth in the U.S. tire market has been sluggish for the past several years and has been exacerbated recently because of the effect of high gas prices on disposable income. Another concern is that the turmoil in the credit markets will continue to dampen economic activity, leading to a retrenchment in consumer spending. Although worn tires must eventually be replaced, the timing of the replacement cycle can be pushed out when consumer budgets are squeezed. If demand does not improve, Cooper may be forced to reduce its production plans, which would strain profitability. High oil prices have driven up the costs of raw materials used in the production of tires. Continued high demand for energy, combined with political unrest in the Middle East, is likely to keep oil prices very high. Roughly 65% of Cooper's raw materials are petroleum-based. Natural rubber prices have also escalated to all-time highs during 2008. The increases in the costs of petroleum-based materials and natural rubber were the most significant drivers of Cooper's higher raw material costs, which were upby $107.5 million for the six-month period ended June 30, 2008, from the level at the same period a year earlier. It is unclear whether the market will fully accept future increases if demand softens. To enhance long-term sales growth and have access to low-cost manufacturing, Cooper continues to focus on its Asian expansion strategy. With the ramp-up of production at the Cooper-Kenda joint venture in China expected to continue, the facility expects to produce nearly 3 million tires during 2008, and Cooper will receive 100% of production until May 2012. "The outlook is negative. Cooper is facing near-term challenges of softening demand in North America and volatile raw material costs. The company currently has adequate liquidity but is expected to generate negative free cash flow in 2008 and make substantial debt repayments during 2009. We could lower our ratings if Cooper is unable to pass along raw material costs to consumers or if end- market demand softens further as a result of higher oil prices or slowing economic activity that leads to leverage of 5x or higher, including our adjustments or weaker liquidity. On the other hand, Cooper's strategy of diversifying its production and sales could enable it to counter cost pressures and tap sales growth in emerging markets. Moreover, if the company is able to offset raw material costs by raising prices, or if raw material costs moderate, we would expect a rebound in EBITDA and free cash flow and revisit our negative outlook," S&P says. CORLISS POINTE: Ch. 11 Case Summary and Largest Unsecured Creditor ------------------------------------------------------------------ Debtor: Corliss Pointe Investments LLC 32 Custom House Street Suite 500 Providence, RI 02903 Bankruptcy Case No.: 08-12517 Related Information: Donald S. Corliss, III, managing member, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: August 15, 2008 Court: District of Rhode Island (Providence) Debtor's Counsel: Damon M. D'Ambrosio, Esq. PO Box 28864 Providence, RI 02908 Tel: (401) 4730728 Estimated Assets: $3,999,376 Estimated Debts: $4,945,376 List of Largest Unsecured Creditor: Creditor Nature of Claim Claim Amount -------- --------------- ------------ Donald S. Corliss, III loans/capital $946,000 DARREN NELSON: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Darren Nelson 100 North Federal Highway Fort Lauderdale, FL 33308 Bankruptcy Case No.: 08-32703 Chapter 11 Petition Date: August 18, 2008 Court: District of Connecticut (New Haven) Debtor's Counsel: Peter L. Ressler, Esq. (ressmul@yahoo.com) Groob Ressler & Mulqueen 123 York Street, Suite 1B New Haven, CT 06511-0001 Tel: (203) 777-5741 Fax: 203-777-4206 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A list of the Debtor's largest unsecured creditors is available for free at http://bankrupt.com/misc/CTb08-32703.pdf DENBURY RESOURCES: Acquisition No Effect on BB Ratings, S&P Says ---------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings on Denbury Resources Inc. (BB/Stable/--) were unaffected by the company's announcement that it is purchasing a 91% interest in the Conroe Field, located near Houston, Texas, for $600 million plus additional consideration, depending on the price of crude oil. Between the pending Conroe Field purchase and the possible acquisition of the Hastings Field from Venoco Inc., Denbury could face significant cash outlays over the next several months. Management is considering the sale of its Barnett Shale properties as a funding source. "If the sale is successful, we would anticipate Denbury's credit measures to remain relatively strong for the 'BB' rating. If instead Denbury finances the cash outlays with debt, we would expect financial leverage to be at the outer range of expectations for the rating," S&P says. FOAMEX INTERNATIONAL: Audit Committee Dismisses KPMG as Accountant ------------------------------------------------------------------ The Audit Committee of the Board of Directors of Foamex International Inc., upon completion of a formal proposal process involving several firms, dismissed KPMG LLP as its independent registered public accounting firm effective as of August 14, 2008, and approved the engagement of McGladrey & Pullen, LLP, as its new independent registered public accounting firm. The approval of McGladrey is subject to McGladrey's normal client acceptance procedures. In connection with the audits of the Company's consolidated financial statements for each of the two fiscal years ended December 30, 2007, and December 31, 2006, and in the subsequent interim period from December 31, 2007, through and including August 14, 2008, there were no disagreements between the Company and KPMG on any matter of accounting principles or practices, consolidated financial statement disclosure, or auditing scope and procedures, which disagreements if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the matter in their audit reports on the consolidated financial statements for such years. The audit reports of KPMG on the consolidated financial statements of the Company for the two years ended December 30, 2007, and December 31, 2006, did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles. The Company has not consulted with McGladrey during the last two fiscal years ended December 30, 2007, and December 31, 2006, or during the subsequent interim period from December 31, 2007, through and including August 14, 2008, on either the application of accounting principles to a specific transaction, either completed or proposed or the type of audit opinion that might be rendered on the Company's consolidated financial statements. About Foamex Headquartered in Linwood, Pennsylvania, Foamex International Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures polymers for the industrial, aerospace, defense, electronics and computer industries. The company and eight affiliates filed for chapter 11 protection on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05- 12693). On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan of Reorganization of Foamex International Inc. became effective and the company emerged from chapter 11 bankruptcy protection on Feb. 12, 2007. * * * As reported in the Troubled Company Reporter on April 8, 2008, Foamex International Inc.'s consolidated balance sheet at Dec. 30, 2007, showed $430.6 million in total assets and $728.7 million in total liabilities, resulting in a $298.1 million total stockholders' deficit. FOAMEX LP: S&P Junks Rating, Sees Need for Covenant Relief ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Foamex L.P. to 'CCC+' from 'B-' because of ongoing concerns related to financial performance in an increasingly difficult operating environment, and the increased likelihood that Foamex will have to seek covenant relief from its lenders within the next several quarters. "We removed the ratings from CreditWatch, where they were placed with negative implications on Feb. 14, 2008, on concerns regarding weak operating performance and uncertainty related to the company's ability to solidify its financial profile," S&P says. "At the same time, we also lowered the secured debt ratings and revised the recovery ratings to reflect our current expectations for recovery in a default scenario," S&P adds. "[The] actions acknowledge the company's significant reduction in debt through completion of a rights offering in the second quarter and the additional reduction of $20.4 million completed on Aug. 15, 2008," said Standard & Poor's credit analyst Henry Fukuchi. "Although the completion of the rights offering was a meaningful step, business conditions have deteriorated and we still believe that Foamex could face challenges in preserving sufficient access to liquidity because of tightening financial covenants." S&P says. "We remain concerned about the declining trend in Foamex's operating performance, due to soft demand in key end markets, particularly in view of the current difficult credit market conditions facing many leveraged borrowers. We note that the maximum leverage requirements in the company's credit loan agreements step down to a more restrictive level at the end of 2008. In order to maintain the current ratings, we expect the company to take the necessary steps to alleviate any financial covenant concerns through its equity cure options and to take further steps to restore its financial profile and financial flexibility to acceptable levels," according to S&P. With revenues of about $1 billion, Foamex is the leading manufacturer and distributor of flexible polyurethane and advanced polymer foam products, operating mainly in U.S. where it generates about 90% of sales. The company's foam products business (about 38% of sales) serves the bedding, furniture, and consumer products industries with commodity and specialty cushioning foams. Automotive products (about 44% of sales) include foam rolls and laminate products manufactured for seat covers and other interior soft-trim applications. Carpet cushion products (about 7% of sales) consist of carpet underlay made from the company's scrap foam as well as scrap from outside sources. Foamex also maintains a technical foams business (about 11% of sales) that offers more attractive margins and growth opportunities due to higher value- added applications and technological innovation. Still, the business is vulnerable to consumer spending trends, raw material cost escalation, and to fluctuations in the automotive and housing sectors. "The outlook is negative. We could lower the ratings again this year if Foamex is unable to maintain profitability at levels sufficient to remain in compliance with financial covenants or if the current difficult operating environment leads to further weakening of the financial profile. However, we could raise the ratings if Foamex is able to obtain relief from restrictive covenants and demonstrates a consistent track record of profitability, alleviating any future liquidity concerns." FORD MOTOR: Big Three Auto Makers Seeking Up to $50BB in Lifeline ----------------------------------------------------------------- Sharon Terlep and Josh Mitchell of the Wall Street Journal report that The Big Three auto makers and their suppliers are now seeking significantly more help from the federal government. The Detroit Free Press reported earlier in August that top executives at Ford Motor Co., General Motors Corp., and Chrysler LLC had a meeting and decided to ask for financial aid from the feds. There is no consensus as to how much do auto executives want, people familiar with the talks say, according to the report. But reports say it could be between $40 billion and $50 billion. The auto makers would like to have a funded plan in place by the end of 2008. The companies have already been authorized to receive $25 billion government-backed loans approved as part of an energy bill last year. The loans have yet to be funded. David Cole, president of the Center of Automotive Research in Ann Arbor, Mich., denied the funding is a bailout in its entirety, WSJ says. "This is actually more like the government acting like a banker as it begins to look at the major consequences of a major failure in the auto industry," he said. The current funding is reportedly aimed at making the Big Three more competitive. About Ford Motor Co 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 Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects these: (i) the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; (ii) portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and (iii) escalating commodity costs that will remain a significant offset to cost reduction efforts. GENERAL MOTORS: U.S. Auto Makers Seeking Up to $50BB in Lifeline ---------------------------------------------------------------- Sharon Terlep and Josh Mitchell of the Wall Street Journal report that The Big Three auto makers and their suppliers are now seeking significantly more help from the federal government. The Detroit Free Press reported earlier in August that top executives at Ford Motor Co., General Motors Corp., and Chrysler LLC had a meeting and decided to ask for financial aid from the feds. There is no consensus as to how much do auto executives want, people familiar with the talks say, according to the report. But reports say it could be between $40 billion and $50 billion. The auto makers would like to have a funded plan in place by the end of 2008. The companies have already been authorized to receive $25 billion government-backed loans approved as part of an energy bill last year. The loans have yet to be funded. David Cole, president of the Center of Automotive Research in Ann Arbor, Mich., denied the funding is a bailout in its entirety, WSJ says. "This is actually more like the government acting like a banker as it begins to look at the major consequences of a major failure in the auto industry," he said. The current funding is reportedly aimed at making the Big Three more competitive. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. About Ford Motor Co 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 Aug. 5, 2008, Fitch Ratings has downgraded the issuer default rating of Ford Motor Company and Ford Motor Credit Company LLC to 'B-' from 'B'. The Rating Outlook remains Negative. The downgrade reflects these: (i) the further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices; (ii) portfolio deterioration at Ford Credit and heightened concern regarding economic access to capital to support financing requirements; and (iii) escalating commodity costs that will remain a significant offset to cost reduction efforts. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of $145,741,000,000 and total debts of $186,784,000,000, resulting in a stockholders' deficit of $41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and $4,558,000,000, respectively. General Motors Latin America, Africa and Middle East, with headquarters in Miramar, Florida, is one of GM's four regional business units. GM LAAM employs approximately 37,000 people in 18 countries and has manufacturing facilities in Argentina, Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and Venezuela. GM LAAM markets vehicles under the Buick, Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and Suzuki brands. HOPE MILL: Ch. 11 Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Hope Mill Village Associates, LLC. P.O. Box 178, Main Street Hope, RI 02831 Bankruptcy Case No.: 08-12568 Chapter 11 Petition Date: August 20, 2008 Court: District of Rhode Island (Providence) Debtor's Counsel: Keven A. McKenna (KevenM@McKennalaw.cc) McKenna Law Offices 23 Acorn Street Providence, RI 02903 Tel: 273-8200 Fax: 521-5820 Total Assets: $28,800,000 Total Debts: $6,680,170 List of Largest Unsecured Creditors: Creditor Nature of Claim Claim Amount -------- --------------- ------------ Robinson Design, Inc. $410,000 405 Douglas Pike Smithfield, RI 02917 Conley Law Offices $335,000 1445 Wampanoag Trail East Providence, RI 02917 Hope Riverfront Condominiums unliquidated $325,000 LLC c/o Richard Land, Esq. 123 Dyer Avenue Providence, RI 02903 Lucille Marinelli $100,000 Steven Miller Law Office $100,000 NashDesign $92,777 RI Department of Environmental $85,000 Management Glen Ahlborg unliquidated $55,000 DiPrete Engineering Associates, trade debt $43,684 Inc. Durkee, Brown, Vivelros and $38,000 Werenfels Ar Town of Scituate Tax Collector $35,000 Dollar Quest $25,000 Bill Gordon trade debt $25,000 Premium Financing Specialists unliquidated $22,586 Michael Kelly, Esq. trade debt $21,173 Bryant Associates trade debt $16,425 Jacques Whitford Company, Inc. trade debt $15,918 Carbone B & Sons Plumbing and $14,000 Heating Fire Suppression Systems of New $9,801 England James J. Gerenia & Associates, $7,100 Inc. INDEPENDENCE IV: Fitch Junks Ratings on Three Classes ----------------------------------------------------- Fitch Ratings downgrades and removes from Rating Watch Negative six classes of notes issued by Independence IV CDO, Ltd./Inc. (Independence IV). These rating actions are effective immediately: --$62,551,746 class A-1 (Series 1) notes to 'BB' from 'A+'; --$57,366,022 class A-1 (Series 2) notes to 'BB' from 'A+'; --$29,235,208 class A-2 notes to 'B' from 'A-'; --$27,773,448 class A-3 notes to 'CCC' from 'BBB'; --$29,235,208 class B notes to 'CC' from 'BB+'; --$26,032,604 class C notes to 'C' from 'CCC'. Fitch's rating actions reflect the significant collateral deterioration within the portfolio, specifically from U.S. subprime residential mortgage-backed securities (RMBS) and U.S. Alternative-A (Alt-A) RMBS. Independence IV is a cash flow structured finance (SF) collateralized debt obligation (CDO) that closed on June 26, 2003 and is managed by Declaration Management & Research LLC. Currently, 41.2% of the portfolio is comprised of 2005 and 2006 vintage subprime RMBS, and 9.5% consists of 2005 and 2006 vintage Alt-A RMBS. The portfolio also contains various other structured finance assets. Since Fitch's last review on Nov. 21, 2007, approximately 49.3% of the portfolio has been downgraded, with 11.2% of the portfolio currently on Rating Watch Negative. Additionally, 52.5% of the portfolio is now rated below investment grade, including 40.1% of the portfolio rated 'CCC+' or lower. As of the latest trustee report dated July 8, 2008, the portfolio's Weighted Average Rating Factor was approximately 'BB', down from approximately 'BBB-' at Fitch's last review and breaching the transaction's covenant of 'BBB/BBB-'. The collateral deterioration has caused each of the overcollateralization (OC) ratios to fall below 100% and fail their respective tests. As of the latest trustee report, the class A/B OC ratio was 84.4% and the class C OC ratio was 75.3%. The class A/B interest coverage ratio was measured at 83.3%, below its covenant of 110%. As a result of the coverage test failures, the transaction is currently not paying interest to the class C notes. Additionally, there were insufficient interest proceeds at the last payment date in July 2008 to fully satisfy the interest payment due on the class B notes. This interest shortfall required over $300,000 of principal proceeds to be used to fulfill the class B note interest payment. Fitch expects this trend of using principal proceeds to compensate for interest shortfalls to continue in the future, further reducing the coverage available to the senior notes. The ratings of the classes A-1 (Series 1), A-1 (Series 2), A-2, A- 3, and B notes address the timely receipt of scheduled interest payments and the ultimate receipt of principal as per the transaction's governing documents. The rating of the class C notes addresses the ultimate receipt of interest payments and ultimate receipt of principal as per the transaction's governing documents. Fitch is reviewing its SF CDO approach and will comment separately on any changes and potential rating impact at a later date. Fitch will continue to monitor and review this transaction for future rating adjustments. INDEPENDENCE IV: Fitch Lowers Class A-1 Notes to BB from A+ ----------------------------------------------------------- Fitch Ratings has downgraded the rating of the collateralized callable notes issued by CCN (Independence IV) LLC from 'F1', to 'F3' and removed it from Rating Watch Negative. The proceeds of the CCNs were used to purchase the Independence IV CDO Ltd and Independence IV CDO Inc. class a-1 (series 1) and class a-1 (series 2) notes. The action taken on the CCNs is the result of the underlying class A-1 notes being downgraded from 'A+' to 'BB'. The 'F3' rating represents the capacity for adequate timely payment of financial commitments. CCN (Independence IV) LLC benefits from a put agreement with AIG Financial Products (AIG-FP) whose payment obligations are absolutely and unconditionally guaranteed by American International Group (rated 'AA-/F1+', with a Negative Outlook by Fitch). The availability of this put agreement is contingent upon, among other things, the continued fulfillment of interest payments and the ultimate payment of principal to the class A-1 notes. JEWISH CENTER: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Jewish Center & Hebrew Day School of Lakewood 419 5th Street Lakewood, NJ 08701 Bankruptcy Case No.: 08-25842 Related Information: William Cohen, secretary, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: August 21, 2008 Court: District of New Jersey (Trenton) Debtor's Counsel: Timothy P. Neumann, Esq. (tneumann@bnfsbankruptcy.com) Broege, Neumann, Fischer & Shaver 25 Abe Voorhees Drive Manasquan, NJ 08736 Tel: (732) 223-8484 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of its largest unsecured creditors. KLERIOTIS LLC: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Kleriotis LLC 8130 Richmond Highway Alexandria, VA 22309 Bankruptcy Case No.: 08-15006 Chapter 11 Petition Date: August 20, 2008 Court: Eastern District of Virginia (Alexandria) Judge: Stephen S. Mitchell Debtor's Counsel: Gregory Max Van Doren, Esq. (gmaxvand1@msn.com) 9119 Church Street Manassas, VA 20110 Telephone (703) 369-5353 Fax (703) 369-2213 Estimated Assets: $1,000,001 to $10 million Estimated Debts: $1,000,001 to $10 million A copy of Debtor's petition and a list of its 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/vaeb08-15006.pdf LEXINGTON CONSULTING: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Lexington Consulting, Inc. 20115 Orchard Meadow Saratoga, CA 95070 Bankruptcy Case No.: 08-54532 Related Information: James Rogers, president, filed the petition on the Debtor's behalf. Mr. Rogers holds 100% of the Debtor's common stock. Chapter 11 Petition Date: August 19, 2008 Court: Northern District of California (San Jose) Judge: Arthur S. Weissbrodt Debtor's Counsel: Charles B. Greene, Esq. (cbgattyecf@aol.com) Law Offices of Charles B. Greene 84 West Santa Clara Street #770 San Jose, CA 95113 Tel: (408) 279-3518 Estimated Assets: $15,002,500 Estimated Debts: $8,920,000 The Debtor did not file a list of its largest unsecured creditors. LOCATEPLUS HOLDINGS: Auditor Expresses Going Concern Doubt ---------------------------------------------------------- Livingston & Haynes, P.C., raised substantial doubt about the ability of LocatePLUS Holdings Corporation to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor stated that the company has an accumulated deficit and has suffered substantial net losses in each of the last two years. The company has incurred an accumulated deficit of around $47,000,000 through Dec. 31, 2007. The company raised around $3,000,000 and $1,300,000 through the issuance of debt and equity during 2007 and 2006, respectively. However, management believes that the ultimate success of the company is still dependent upon its ability to secure additional financing to meet its working capital and ongoing project development needs. The company posted a net loss of $7,247,417 on total revenues of $8,347,762 for the year ended Dec. 31, 2007, as compared with a net loss of $5,961,834 on total revenues of $11,237,194 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $2,773,349 in total assets and $9,657,304 in total liabilities, resulting in a $6,883,954 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $1,210,275 in total current assets available to pay $6,077,297 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?310e About LocatePLUS Based in Beverly, Mass., LocatePLUS Holdings Corp. -- http://www.locateplus.com/-- and its subsidiaries provides public information and investigative solutions that are used in homeland security, anti-terrorism and crime fighting initiatives. The company's proprietary, Internet-accessible database is marketed to business-to-business and business-to-government sectors worldwide. LUMINENT MORTGAGE: Moody's Junks 12 Class Tranches' Ratings ----------------------------------------------------------- Moody's Investors Service downgraded the ratings of 32 tranches from 5 Option ARM transactions issued by Luminent Mortgage Trust. Additionally, 7 senior tranches were confirmed at Aaa. The collateral backing these transactions consists primarily of first- lien, adjustable-rate, hybrid and negatively amortizing Alt-A mortgage loans. Complete rating actions are Issuer: Luminent Mortgage Trust 2006-1 -- Cl. A-3, Downgraded to Ba2 from Aaa -- Cl. X, Confirmed at Aaa -- Cl. M, Downgraded to Caa1 from B2 -- Cl. B-1, Downgraded to Ca from B3 Issuer: Luminent Mortgage Trust 2006-2 -- Cl. X, Confirmed at Aaa -- Cl. PO, Confirmed at Aaa -- Cl. B-1, Downgraded to B3 from B2 -- Cl. B-2, Downgraded to Ca from B3 Issuer: Luminent Mortgage Trust 2006-3 -- Cl. I-1A-3, Downgraded to A3 from Aaa -- Cl. I-2A-3, Downgraded to A3 from Aaa -- Cl. II-1A-1, Downgraded to A2 from Aaa -- Cl. II-1X-1, Downgraded to A2 from Aaa -- Cl. II-2A-1, Downgraded to A2 from Aaa -- Cl. II-2X-1, Downgraded to A2 from Aaa -- Cl. II-3A-1, Downgraded to A2 from Aaa -- Cl. II-3X-1, Downgraded to A2 from Aaa -- Cl. II-1A-2, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. II-2A-2, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. II-3A-2, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. I-M-1, Downgraded to B1 from Aa2 -- Cl. I-M-2, Downgraded to B2 from Ba1 -- Cl. I-M-3, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. I-B-1, Downgraded to Ca from B3 -- Cl. I-B-2, Downgraded to Ca from B3 -- Cl. I-B-3, Downgraded to C from Ca -- Cl. I-B-4, Downgraded to C from Ca Issuer: Luminent Mortgage Trust 2006-4 -- Cl. A-1C, Downgraded to Ba2 from Aaa -- Cl. X, Confirmed at Aaa -- Cl. PO, Confirmed at Aaa -- Cl. B-1, Downgraded to B3 from Ba1 -- Cl. B-2, Downgraded to Ca from B3 -- Cl. B-4, Downgraded to C from Ca Issuer: Luminent Mortgage Trust 2006-5 -- Cl. A1B, Downgraded to Aa1 from Aaa -- Cl. A1C, Downgraded to B1 from Aaa -- Cl. X, Confirmed at Aaa -- Cl. PO, Confirmed at Aaa -- Cl. B-1, Downgraded to Ca from B2 -- Cl. B-2, Downgraded to Ca from B3 -- Cl. B-4, Downgraded to C from Ca Ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions described below are a result of Moody's on-going review process. MADACY ENTERTAINMENT: Amends Bank Facility to Regain Compliance --------------------------------------------------------------- Madacy Entertainment Income Fund completed an amendment to its banking facility, which it entered into with its bank which has the effect of amending its covenant relating to fixed charge coverage. In addition, the Fund agreed to be subject to a monthly financial covenant with respect to its tangible net worth with effect commencing July 2008. As a result of the Amendments, the company is in compliance with its banking covenants. On Aug. 14, the company stated that at the end of the Second Quarter, it was not in compliance with its fixed charge coverage covenant. In addition, concurrently with the amendments, the holding company of the chief executive officer provided a guarantee to the bank in the amount of C$2.0 million in order to provide the Fund with additional liquidity for the coming few months as such months have seasonally high working capital requirements. "We are pleased to have completed this amendment to our banking facility as it permits us to be in compliance with all of our banking covenants and provides us with additional working capital liquidity during this seasonally important time of year," said Hillel Frankel, president of Madacy. Additionally, Madacy reported net loss for the quarter ended June 28, 2008, of $2.9 million compared to a net loss of $325,000 for the same period in the previous year. The company recorded net sales of $10.8 million in the second quarter, a decrease of $8.8 million or 45.2% from the comparative period of the prior year At June 28, the company's balance sheet showed total assets of $67.4 million, total liabilities $47.6 million and unitholders' equity $19.8 million. About Madacy Entertainment Income Fund Headquartered in Quebec, Canada, Madacy Entertainment Income Fund (TSX: MEG.UN) -- http://www.madacy.com/-- operates in the business of recorded music and home video products with a primary focus on the development and marketing of budget and mid-priced recorded music products. Madacy is also involved in the licensing of its proprietary recordings. METROFINANCIERA SA: Fitch Lowers Individual Rating to D/E from D ---------------------------------------------------------------- Fitch has taken various rating actions on Mexican mortgage company Metrofinanciera S.A. de C.V. Its Individual rating was downgraded to 'D/E' from 'D', given continued pressures on its capital adequacy, asset quality, liquidity and refinancing needs. In view of increasing support mechanisms from the housing development bank SHF, Fitch has upgraded Metro's support rating to '4' from '5' and simultaneously assigned a support rating floor at 'B+'. Metro's Issuer Default Ratings (IDRs) are at the support rating floor. Therefore, the IDRs and the national-scale ratings were affirmed and the Outlook remains Stable, since downside risk is unlikely unless Fitch's opinion on the potential of external support changes. The rating of the perpetual subordinated securities was downgraded to 'CCC-/RR6' from 'B-/RR6'. The rating actions are: -- Foreign currency long-term IDR affirmed at 'B+'; -- Foreign currency short-term IDR affirmed at 'B'; -- Local currency long-term IDR affirmed at 'B+'; -- Local currency short-term IDR affirmed at 'B'; -- US$100 million 11.25% perpetual non-cumulative subordinated step-up notes downgraded to 'CCC-/RR6' from 'B-/RR6'; -- Individual rating downgraded to 'D/E' from 'D'; -- Support rating upgraded to '4' from '5'; -- Support rating floor assigned at 'B+'; -- Long-term national-scale issuer rating, including local senior debt issues affirmed at 'BBB(mex)'; -- Short-term national-scale issuer rating, including the company's commercial paper affirmed at 'F3(mex)'; The Rating Outlook is Stable. Given Metro's important presence in the local capital markets, both in terms of unsecured issuance and origination of structured transactions, and as a significant provider of financing for socially important housing, Metro's Support rating was upgraded to '4', and a Support Floor of 'B+' was assigned. SHF's higher propensity to support is already evident in Metro's increased use of secured SHF funding. SHF support today is principally made available under facilities and conditions that are approved on a case-by-case basis, which currently limits the support available to Metro and its peers. Bilateral and industry-wide discussions are underway between SHF and individual mortgage companies aimed at making clearer the potential support available from SHF for systemically important companies that consistently operate following SHF guidelines; should such discussions result in a clearer and/or broader approach to support for mortgage and construction finance companies, the Support rating would benefit and the Support Floor could increasingly weigh over time the rating of SHF, currently rated 'AAA(mex)'. The downgrade of the Individual rating reflects continued weakening of asset quality, liquidity, capital adequacy, profitability and business risk. Asset quality in both the mortgage and construction loan portfolios has deteriorated at a relatively fast pace and the worsening credit environment puts additional pressure on the company's liquidity and refinancing risk. Metro has taken recent actions to contain asset quality deterioration, although these will take some time to prove their effectiveness. However, Metro's capacity to absorb losses has also declined. The amount of net past due loans, net foreclosed and deferred assets, well as the on-balance equity tranches from securitizations, together accounted for 95% of eligible capital as of June 2008. Fitch expects capital adequacy will remain very limited despite a planned upcoming capital infusion by a foreign private equity fund. Moreover, refinancing risk remains ample, although short-term debt outstanding has been reduced since mid- 2007, but the worsening credit environment exacerbates Metro's lack of financial flexibility. Fitch also believes that profitability could further deteriorate, given the increase in funding costs, fierce price competition on the asset side, expected higher provisions in the foreseeable future and the volatile nature of valuation gains on the first loss pieces, which have largely explained Metro's net income since 2007. Since the perpetual subordinated notes are unlikely to benefit from external support, this rating reflects both its degree of subordination and the company's financial condition. The weakening on the latter indicates that the probability of default on the notes has increased to a level that Fitch considers is consistent with the 'CCC-/RR6' rating category. Established in Monterrey in 1996, Metro is a diversified finance company specialized in both construction and mortgages loans. It is the third largest home finance company with 55 branches as of May 2008 in all but one of the 32 Mexican states. Despite recurring securitizations, over years 2003-2007, Metro's on- balance loans grew at a 30% compounded annual growth rate. While this has positioned the firm as a major mortgage company, it has increasingly pressured its financial profile. As of June 2008, the on-balance performing loan portfolio was balanced among construction loans (51%) and mortgages (49%), although the mix shifts to 56/44, respectively, when securitized off-balance loans are included. Given the worsening environment, loan growth has slowdown to 18% year-over-year as of June 2008 and Fitch expects it will post flat to moderate growth in the near future, until the business cycle and the liquidity crunch are reverted. MOHEGAN TRIBAL: Moody's Places Two Senior Notes' Rating At Low-B ---------------------------------------------------------------- Moody's Investors Service placed Mohegan Tribal Gaming Authority's ratings on review for possible downgrade in response to the company's continued vulnerability to the weak US economy and increased competition in the Northeast US. Ratings affected include MTGA's Ba2 corporate family ratings, Ba2 probability of default rating, Ba1 senior note rating, and Ba3 senior subordinated note ratings. "A continuation of negative EBITDA trends will make it less likely that MTGA will be able to reduce its leverage within the next 24 months to a level Moody's considers more consistent with a Ba2 corporate family rating", stated Keith Foley, Senior Vice President. Mohegan's EBITDA has declined in the past three fiscal quarters at an increasing rate, and it is possible that this trend will continue. For the most recent quarter ended June 30, 2008, reported EBITDA declined 41%, to $58.8 million versus the comparable prior year month. Debt/EBITDA for the latest 12-month period ended June 30, 2008 was about 6 times and includes a significant amount of borrowings related to its $925 million Project Horizon development project. In addition to the economic and competitive environment, Moody's review will consider MTGA's plans to mitigate further EBITDA declines and manage its free cash flow going forward. Areas of focus will include expense management as well as any changes the company may consider related to planned development capital expenditures and tribal distributions. Moody's will also evaluate the company's plans regarding covenant compliance and an upcoming $330 million senior subordinated debt maturity in July 2009. MTGA owns and operates a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs. MTGA reported net revenues of $1.6 billion for the latest 12-month period ended June 30, 2008. MORGAN STANLEY: Fitch Holds CCC Rating for $8.6MM Class N Certs --------------------------------------------------------------- Fitch Ratings affirms Morgan Stanley Capital I Inc., commercial mortgage pass-through certificates, series 1999-RM1, as: -- $43.1 million class A-2 at 'AAA'; -- Interest-only class X at 'AAA'; -- $43 million class B at 'AAA'; -- $45.1 million class C at 'AAA'; -- $12.9 million class D at 'AAA'; -- $34.4 million class E at 'AAA'; -- $17.2 million class F at 'AAA'; -- $10.7 million class G at 'AAA'; -- $23.6 million class H at 'AA-'; -- $8.6 million class J at 'A'; -- $12.9 million class K at 'BBB'; -- $6.4 million class L at 'BBB-'; -- $8.6 million class M at 'B+'; -- $8.6 million class N at 'CCC'. Fitch does not rate the $5.4 million class O certificates, and class A-1 has paid in full. The classes are affirmed due to stable Fitch-expected credit enhancement levels since Fitch's last rating action. In addition, paydown of $164.8 million (19.2%) since the last Fitch review has been offset by a small uptick in the concentration of Fitch Loans of Concern (to 11.8% from 9.4%) well as refinance risk corresponding to a high concentration of upcoming maturities in 2008 (70.5%). As of the August 2008 distribution date, the pool has paid down 67.4% to $280.6 million, from $859.4 million at issuance. Fifteen loans (29.2%) have defeased, including four of the top 10 loans (15.2%). Forty-nine loans, representing approximately 70.5% of the pool, are scheduled to mature throughout the remainder of 2008. Of these loans, 14 (28.4%) have defeased. For the non-defeased loans scheduled to mature in 2008, the weighted average coupon is 7.12%, the weighted average servicer-reported debt service coverage ratio (DSCR) is 1.72 times (x), and the weighted average occupancy is 85.6%. Fitch has identified 11 loans (11.8%) as Fitch Loans of Concern. These include loans with DSCRs below 1.0x, loans with Fitch stressed loan-to-value ratios of greater than 100%, and loans with other performance issues. Of the Fitch Loans of Concern, five (5.8%) are scheduled to mature in 2008. Currently, no loans are in special servicing. MORGAN STANLEY: Moody's Junks 158 Class Certificates' Ratings ------------------------------------------------------------- Moody's Investors Service downgraded the ratings of 320 tranches from 25 transactions issued by Morgan Stanley. Of these, 28 continue to remain on review for further possible downgrade. Additionally, 15 senior tranches were confirmed at Aaa. The collateral backing these transactions consists primarily of first- lien, adjustable-rate, Alt-A mortgage loans. Complete rating actions are: Issuer: Morgan Stanley Mortgage Loan Trust 2005-11AR -- Cl. A-1, Downgraded to Baa3 from Aaa -- Cl. A-2, Downgraded to Aa1 from Aaa -- Cl. A-3, Downgraded to Ba1 from Aaa -- Cl. X, Downgraded to Aa1 from Aaa -- Cl. M-1, Downgraded to B3 from Baa1 -- Cl. M-2, Downgraded to Caa2 from B2 -- Cl. M-3, Downgraded to Ca from B2 -- Cl. M-4, Downgraded to Ca from B3 -- Cl. M-5, Downgraded to Ca from B3 -- Cl. B-3, Downgraded to C from Ca -- Cl. B-4, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2005-6AR -- Cl. 1-A-1, Downgraded to Aa1 from Aaa -- Cl. 1-A-4, Downgraded to Aa2 from Aaa -- Cl. 2-A-1, Downgraded to Aa2 from Aaa -- Cl. 2-A-3, Downgraded to Aa3 from Aa1 -- Cl. 3-A-1, Downgraded to Aa2 from Aaa -- Cl. 3-A-3, Downgraded to Aa3 from Aa1 -- Cl. 4-A-3, Downgraded to Aa3 from Aa1 -- Cl. 5-A-1, Downgraded to Aa2 from Aaa -- Cl. 5-A-3, Downgraded to Aa3 from Aa1 -- Cl. 6-A-2, Downgraded to Aa3 from Aa1 Issuer: Morgan Stanley Mortgage Loan Trust 2005-9AR -- Cl. 1-A, Downgraded to Baa1 from Aaa -- Cl. 1-X, Downgraded to Baa1 from Aaa -- Cl. 2-A, Downgraded to A3 from Aaa -- Cl. 3-A-1, Downgraded to Aa1 from Aaa -- Cl. 3-A-2, Downgraded to Baa1 from Aa1 -- Cl. 1-B-1, Downgraded to B3 from Baa3 -- Cl. 1-B-2, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to B3 from Baa3 -- Cl. B-2, Downgraded to Ca from B2 Issuer: Morgan Stanley Mortgage Loan Trust 2006-11 -- Cl. 1-A-1, Confirmed at Aaa -- Cl. 1-A-2, Downgraded to Baa2 from Aaa -- Cl. 1-A-3, Downgraded to Baa2 from Aaa -- Cl. 1-A-5, Downgraded to Ba1 from Aaa -- Cl. 1-A-6, Downgraded to Baa2 from Aaa -- Cl. 2-A-4, Downgraded to A1 from Aa1 -- Cl. 2-A-P, Downgraded to Aa3 from Aaa -- Cl. 3-A-4, Downgraded to A1 from Aa1 -- Cl. 3-A-P, Downgraded to Aa3 from Aaa -- Cl. 4-A-1, Downgraded to Aa3 from Aaa -- Cl. 4-A-2, Downgraded to Aa3 from Aaa -- Cl. 1-M-1, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. 1-M-2, Downgraded to Caa2 from B3 -- Cl. 1-M-3, Downgraded to Ca from B3 -- Cl. 1-M-4, Downgraded to Ca from B3 -- Cl. 1-M-5, Downgraded to C from Caa1 -- Cl. 1-M-6, Downgraded to C from Caa1 -- Cl. 1-B-1, Downgraded to C from Ca -- Cl. 1-B-2, Downgraded to C from Ca -- Cl. 1-B-3, Downgraded to C from Ca -- Cl. B-2, Downgraded to Caa2 from B2 -- Cl. B-3, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2006-12XS -- Cl. A-1, Confirmed at Aaa. -- Cl. A-2B, Downgraded to Aa2 from Aaa -- Cl. A-3, Downgraded to Aa3 from Aaa -- Cl. A-4, Downgraded to Baa2 from Aaa -- Cl. A-5B, Downgraded to Baa2 from Aaa -- Cl. A-6B, Downgraded to Baa2 from Aaa -- Cl. M-1, Downgraded to Ba1 from Baa1 -- Cl. M-4, Downgraded to Caa2 from B2 -- Cl. M-5, Downgraded to Ca from B3 -- Cl. M-6, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-2, Downgraded to C from B3 -- Cl. B-3, Downgraded to C from Caa1 Issuer: Morgan Stanley Mortgage Loan Trust 2006-13ARX -- Cl. A-1, Downgraded to Baa2 from Aaa -- Cl. A-2, Downgraded to Baa3 from Aaa -- Cl. A-3, Downgraded to Baa3 from Aaa -- Cl. A-4, Downgraded to Caa2 from Aaa -- Cl. M-1, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to C from Caa1 -- Cl. M-3, Downgraded to C from Caa1 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Ca -- Cl. M-6, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2006-15XS -- Cl. A-1, Confirmed at Aaa -- Cl. A-2-A, Downgraded to Aa2 from Aaa -- Cl. A-3, Downgraded to Aa3 from Aaa -- Cl. A-4-A, Downgraded to A1 from Aaa -- Cl. A-5-A, Downgraded to A1 from Aaa -- Cl. A-6-A, Downgraded to A1 from Aaa -- Cl. M-6, Downgraded to Caa1 from B3 -- Cl. B-1, Downgraded to Caa2 from B3 -- Cl. B-2, Downgraded to Ca from B3 -- Cl. B-3, Downgraded to Ca from Caa1 Issuer: Morgan Stanley Mortgage Loan Trust 2006-16AX -- Cl. 1-A, Downgraded to Ba3 from Aaa -- Cl. 2-A-1, Downgraded to A1 from Aaa -- Cl. 2-A-2, Downgraded to A2 from Aaa -- Cl. 2-A-3, Downgraded to A3 from Aaa -- Cl. 2-A-4, Downgraded to Caa1 from Aaa -- Cl. 3-A-1, Downgraded to Baa1 from Aaa -- Cl. 3-A-2, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 3-M-1, Downgraded to Ca from B3 -- Cl. 3-M-2, Downgraded to C from Caa1 -- Cl. M-1, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to Ca from B3 -- Cl. M-3, Downgraded to C from B3 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Caa1 -- Cl. M-6, Downgraded to C from Caa1 -- Cl. 3-B-1, Downgraded to C from Ca -- Cl. 3-B-2, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2006-17XS -- Cl. A-1, Downgraded to Aa2 from Aaa -- Cl. A-2-B, Downgraded to A1 from Aaa -- Cl. A-3-B, Downgraded to A2 from Aaa -- Cl. A-4, Downgraded to A3 from Aaa -- Cl. A-6, Downgraded to Aa3 from Aaa -- Cl. M-5, Downgraded to Caa1 from B3 -- Cl. M-6, Downgraded to Caa2 from B3 -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-2, Downgraded to Ca from B3 -- Cl. B-3, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2006-1AR -- Cl. 1-A-1, Downgraded to Baa1 from Aaa -- Cl. 1-A-3, Downgraded to Baa2 from Aa1 -- Cl. 1-A-X, Confirmed at Aaa -- Cl. 2-A, Downgraded to Baa3 from Aaa -- Cl. 3-A, Downgraded to Baa3 from Aaa -- Cl. 4-A-1, Downgraded to Baa2 from Aaa -- Cl. 4-A-2, Downgraded to Baa3 from Aaa -- Cl. 4-A-3, Downgraded to Baa3 from Aaa -- Cl. 1-M-3, Downgraded to Caa3 from B3 -- Cl. 1-M-4, Downgraded to Ca from B3 -- Cl. 1-M-5, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade Issuer: Morgan Stanley Mortgage Loan Trust 2006-3AR -- Cl. 1-A-2, Downgraded to A1 from Aa1 -- Cl. 1-A-3, Downgraded to Aa3 from Aaa -- Cl. 2-A-2, Downgraded to A3 from Aaa -- Cl. 2-A-4, Downgraded to A3 from Aa1 -- Cl. 3-A-2, Downgraded to A3 from Aa1 -- Cl. 1-M-X, Downgraded to Baa3 from Aa1 -- Cl. 1-M-1, Downgraded to Baa3 from A2 -- Cl. 1-M-2, Downgraded to Ba3 from Baa3 -- Cl. 1-M-3, Downgraded to B3 from Ba3; Placed Under Review for further Possible Downgrade -- Cl. 1-M-4, Downgraded to Caa1 from B2 -- Cl. 1-M-5, Downgraded to Ca from B3 -- Cl. 1-M-6, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to Caa1 from B3 -- Cl. B-1, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2006-5AR -- Cl. A, Downgraded to Ba1 from Aaa -- Cl. A-X, Downgraded to Ba1 from Aaa -- Cl. M-X, Downgraded to B3 from Aa1; Placed Under Review for ] further Possible Downgrade -- Cl. M-1, Downgraded to B3 from Ba1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Caa2 from B2 -- Cl. M-3, Downgraded to Ca from B3 -- Cl. M-4, Downgraded to Ca from B3 -- Cl. M-5, Downgraded to Ca from Caa1 -- Cl. M-9, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2006-6AR -- Cl. 1-A-1, Downgraded to Ba1 from Aaa -- Cl. 1-A-2, Confirmed at Aaa -- Cl. 1-A-3, Downgraded to Baa3 from Aaa -- Cl. 1-A-5, Downgraded to Ba3 from Aaa -- Cl. 2-A, Downgraded to A2 from Aaa -- Cl. 3-A-3, Downgraded to A3 from Aa1 -- Cl. 3-A-4, Downgraded to A2 from Aaa -- Cl. 3-A-5, Downgraded to A2 from Aaa -- Cl. 4-A-2, Downgraded to A3 from Aa1 -- Cl. 4-A-3, Confirmed at Aaa -- Cl. 1-M-1, Downgraded to Caa1 from B3 -- Cl. 1-M-2, Downgraded to Ca from Caa1 -- Cl. 1-M-3, Downgraded to Ca from Caa1 -- Cl. 1-M-4, Downgraded to C from Caa1 -- Cl. 1-M-5, Downgraded to C from Caa1 -- Cl. 1-M-6, Downgraded to C from Ca -- Cl. 1-B-1, Downgraded to C from Ca -- Cl. 1-B-2, Downgraded to C from Ca -- Cl. B-2, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2006-7 -- Cl. 5-A-1, Confirmed at Aaa -- Cl. 5-A-2, Downgraded to Aa3 from Aaa -- Cl. 5-A-3, Downgraded to A1 from Aaa -- Cl. 5-A-4, Downgraded to A1 from Aaa -- Cl. 5-A-5, Downgraded to A1 from Aaa -- Cl. 5-M-1, Downgraded to B3 from B2 -- Cl. 5-M-2, Downgraded to Ca from B3 -- Cl. 5-B-1, Downgraded to C from Ca -- Cl. B-1, Downgraded to Baa2 from A3 -- Cl. B-3, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2006-8AR -- Cl. 1-A-1, Downgraded to B2 from Aaa -- Cl. 1-A-2, Downgraded to Baa2 from Aaa -- Cl. 1-A-3, Downgraded to Ba3 from Aaa -- Cl. 1-A-4, Downgraded to Aa1 from Aaa -- Cl. 1-A-5, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-1, Downgraded to Aa1 from Aaa -- Cl. 2-A-2, Downgraded to B2 from Aa1 -- Cl. 3-A, Downgraded to B1 from Aaa -- Cl. 1-M-1, Downgraded to Caa2 from B3 -- Cl. 1-M-2, Downgraded to Ca from B3 -- Cl. 1-M-3, Downgraded to Ca from Caa1 -- Cl. 1-M-4, Downgraded to C from Caa1 -- Cl. 1-M-5, Downgraded to C from Caa1 -- Cl. 1-M-6, Downgraded to C from Ca -- Cl. 1-B-1, Downgraded to C from Ca -- Cl. 1-B-2, Downgraded to C from Ca -- Cl. 1-B-3, Downgraded to C from Ca -- Cl. II-B-1, Downgraded to Ca from B3 -- Cl. II-B-2, Downgraded to Ca from Caa1 -- Cl. II-B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2006-9AR -- Cl. A-1, Downgraded to A2 from Aaa -- Cl. A-2, Downgraded to A2 from Aaa -- Cl. A-3, Confirmed at Aaa -- Cl. A-4, Downgraded to A2 from Aaa -- Cl. A-5, Downgraded to A2 from Aaa -- Cl. A-6, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to Ca from Caa1 -- Cl. M-3, Downgraded to C from Caa1 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Ca -- Cl. M-6, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-10XS -- Cl. M-1, Downgraded to B2 from Aa1 -- Cl. M-2, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B2 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to Caa2 from Baa1 -- Cl. B-1, Downgraded to Ca from Baa3 -- Cl. B-2, Downgraded to Ca from Ba1 -- Cl. B-3, Downgraded to C from Ba2 Issuer: Morgan Stanley Mortgage Loan Trust 2007-11AR -- Cl. 1-A-2, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-1, Confirmed at Aaa -- Cl. 2-A-2, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-4, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-5, Confirmed at Aaa -- Cl. 2-A-6, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-7, Confirmed at Aaa -- Cl. 2-A-8, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-X, Confirmed at Aaa -- Cl. B-1, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2007-1XS -- Cl. 1-A-1, Downgraded to Baa3 from Aaa -- Cl. 1-A-2, Downgraded to Baa3 from Aaa -- Cl. 2-A-1, Downgraded to A3 from Aaa -- Cl. 2-A-2, Downgraded to Baa1 from Aaa -- Cl. 2-A-3, Downgraded to Baa3 from Aaa -- Cl. 2-A-4-B, Downgraded to Ba3 from Aaa -- Cl. 2-A-4-C, Downgraded to Ba1 from Aaa -- Cl. 2-A-5, Downgraded to Ba1 from Aaa -- Cl. 2-A-6, Downgraded to Baa3 from Aaa -- Cl. M-1, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Caa2 from B3 -- Cl. M-4, Downgraded to Caa3 from B3 -- Cl. M-5, Downgraded to Ca from B3 -- Cl. M-6, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-2AX -- Cl. 1-A, Downgraded to B3 from Aaa -- Cl. 2-A-1, Downgraded to Aa3 from Aaa -- Cl. 2-A-2, Downgraded to A2 from Aaa -- Cl. 2-A-3, Downgraded to A3 from Aaa -- Cl. 2-A-4, Downgraded to Caa1 from Aaa -- Cl. M-1, Downgraded to Caa2 from B3 -- Cl. M-2, Downgraded to Ca from B3 -- Cl. M-3, Downgraded to Ca from Caa1 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Ca -- Cl. M-6, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-3XS -- Cl. 1-A-1, Downgraded to Ba2 from Aaa -- Cl. 1-A-2-B, Downgraded to Ba3 from Aaa -- Cl. 1-A-3-A, Downgraded to Aa1 from Aaa -- Cl. 1-A-3-B, Downgraded to Ba3 from Aaa -- Cl. 2-A-1-B, Downgraded to Baa1 from Aaa -- Cl. 2-A-5, Downgraded to Ba1 from Aaa -- Cl. 2-A-6, Downgraded to Ba1 from Aaa -- Cl. 2-A-7-M, Downgraded to Ba2 from Aaa -- Cl. M-2, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Caa1 from B2 -- Cl. M-4, Downgraded to Caa2 from B3 -- Cl. M-5, Downgraded to Ca from B3 -- Cl. M-6, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-3, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-5AX -- Cl. 1-A, Downgraded to Caa1 from Aaa -- Cl. 2-A-1, Downgraded to Ba3 from Aaa -- Cl. 2-A-2, Downgraded to B1 from Aaa -- Cl. 2-A-3, Downgraded to B1 from Aaa -- Cl. 2-A-4, Downgraded to Caa3 from Aaa -- Cl. M-1, Downgraded to Ca from Caa1 -- Cl. M-2, Downgraded to C from Caa1 -- Cl. M-3, Downgraded to C from Caa1 -- Cl. M-4, Downgraded to C from Ca -- Cl. M-5, Downgraded to C from Ca -- Cl. M-6, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-6XS -- Cl. 1-A-1, Downgraded to A2 from Aaa -- Cl. 1-A-2-M, Downgraded to A3 from Aaa -- Cl. 1-A-3-M, Downgraded to A3 from Aaa -- Cl. 2-A-1-M, Downgraded to Baa1 from Aaa -- Cl. 2-A-6-M, Downgraded to Baa1 from Aaa -- Cl. 2-A-7-M, Downgraded to Baa1 from Aaa -- Cl. M-1, Downgraded to B2 from Baa2 -- Cl. M-2, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from B1; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from B1; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to B3 from B2; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Caa2 from B3 -- Cl. B-2, Downgraded to Ca from B3 Issuer: Morgan Stanley Mortgage Loan Trust 2007-7AX -- Cl. 1-A, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-1, Downgraded to Ba3 from Aaa -- Cl. 2-A-2, Downgraded to Ba3 from Aaa -- Cl. 2-A-3, Downgraded to Ba3 from Aaa -- Cl. 2-A-4, Downgraded to Caa1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. 2-A-5, Downgraded to A2 from Aaa -- Cl. 2-A-6, Downgraded to Caa1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to C from B3 -- Cl. M-3, Downgraded to C from Caa1 -- Cl. M-4, Downgraded to C from Ca -- Cl. M-5, Downgraded to C from Ca -- Cl. M-6, Downgraded to C from Ca -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca Issuer: Morgan Stanley Mortgage Loan Trust 2007-8XS -- Cl. A-1-M, Confirmed at Aaa -- Cl. A-2, Confirmed at Aaa -- Cl. A-4, Confirmed at Aaa -- Cl. M-1, Downgraded to B1 from Ba2 -- Cl. M-2, Downgraded to B2 from B1 -- Cl. M-3, Downgraded to B3 from B1 -- Cl. M-4, Downgraded to Caa2 from B1 -- Cl. M-5, Downgraded to Ca from B1 -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. Certain tranches were confirmed due to additional enhancement provided by structural features. MORTGAGE CAPITAL: Fitch Holds CCC Rating for $7.6MM Class K Certs ----------------------------------------------------------------- Fitch Ratings upgrades Mortgage Capital Funding Inc.'s commercial mortgage pass-through certificates, series 1998-MC2, as: -- $37.9 million class E to 'AAA' from 'AA'; -- $12.6 million class F to 'AAA' from 'A'; -- $25.2 million class G to 'A+' from 'BBB-'; -- $7.6 million class H to 'BBB-' from 'BB+'. Additionally, Fitch affirms these classes: -- Interest-only class X at 'AAA'; -- $12.6 million class C at 'AAA'; -- $60.6 million class D at 'AAA'; -- $15.1 million class J at 'B+'; -- $7.6 million class K at 'CCC'. Fitch does not rate the $2.4 million class L certificates. The class A-1, A-2 and B certificates have paid in full. The upgrades reflect increased credit enhancement due to scheduled amortization and loan payoffs since Fitch's last rating action. As of the August 2008 distribution date, the pool's aggregate balance has been reduced by 82.0%, to $181.6 million from $1,009.5 million at issuance. The largest loan Minneapolis City Center (50.5%) has a final maturity date of May 2028. The loan did not pay off at its anticipated repayment date of May 2008. The borrower is working to secure financing while additional interest is being capitalized. The property is 90% occupied and had a servicer reported year-end 2007 debt service coverage ratio of 1.30 times(x). The loan is secured by a mixed use property consisting of 1.1 million square feet of office space, 370,000 sf of retail, 131,000 sf of storage space, the land on which a 583-room Marriott Hotel is constructed, and a 687-space parking garage. One loan (2.8%) is currently in special servicing due to maturity default. The asset is secured by a 193,524 sf of retail space in Mundelein, Illinois, a Chicago suburb which matured on May 1, 2008. The property is 93% occupied and had a servicer YE 2007 DSCR of 1.72x. MORTGAGE CAPITAL: Fitch Ratings Upgrades Commercial Mortgage Certs ------------------------------------------------------------------ Fitch Ratings upgrades Mortgage Capital Funding Inc.'s commercial mortgage pass-through certificates, series 1998-MC2, as: -- $37.9 million class E to 'AAA' from 'AA'; -- $12.6 million class F to 'AAA' from 'A'; -- $25.2 million class G to 'A+' from 'BBB-'; -- $7.6 million class H to 'BBB-' from 'BB+'. Additionally, Fitch affirms these classes: -- Interest-only class X at 'AAA'; -- $12.6 million class C at 'AAA'; -- $60.6 million class D at 'AAA'; -- $15.1 million class J at 'B+'; -- $7.6 million class K at 'CCC'. Fitch does not rate the $2.4 million class L certificates. The class A-1, A-2 and B certificates have paid in full. The upgrades reflect increased credit enhancement due to scheduled amortization and loan payoffs since Fitch's last rating action. As of the August 2008 distribution date, the pool's aggregate balance has been reduced by 82.0%, to $181.6 million from $1,009.5 million at issuance. The largest loan Minneapolis City Center (50.5%) has a final maturity date of May 2028. The loan did not pay off at its anticipated repayment date of May 2008. The borrower is working to secure financing while additional interest is being capitalized. The property is 90% occupied and had a servicer reported year-end 2007 debt service coverage ratio of 1.30 times(x). The loan is secured by a mixed use property consisting of 1.1 million square feet of office space, 370,000 sf of retail, 131,000 sf of storage space, the land on which a 583-room Marriott Hotel is constructed, and a 687-space parking garage. One loan (2.8%) is currently in special servicing due to maturity default. The asset is secured by a 193,524 sf of retail space in Mundelein, Illinois, a Chicago suburb which matured on May 1, 2008. The property is 93% occupied and had a servicer YE 2007 DSCR of 1.72x. MORTGAGES LTD: May Hire Greenberg Traurig as Special Counsel ------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Arizona authorized Mortgages Ltd. to employ Greenberg Traurig LLP as its special counsel, William Rochelle of Bloomberg News reports. The Court ruled a week earlier that the grounds for disqualifying Greenberg were all related to services the firm rendered prior to the bankruptcy filing, Mr. Rochelle says. The Court found that the firm no longer has conflicts as the Debtor's special counsel. However, Greenberg was disqualified as general bankruptcy counsel. The Troubled Company Reporter said on July 11, 2008, the retention of a new legal counsel by the Debtor may have alleviated the tension among the Debtor, its officials, and investors during a July 9, 2008 hearing. Carolyn Johnsen, Esq., and Bradley Stevens, Esq., at Jennings, Strouss & Salmon PLC, replaced Todd A. Burgess, Esq., at Greenberg Traurig LLP, as counsel to the Debtor. Mr. Rochelle notes that the Court had directed the resignation of Mortgages Ltd.'s president, replacement of general counsel, and removal of its financial adviser. About Mortgages Ltd. Phoenix, Arizona-based Mortgages Ltd. -- http://www.mtgltd.com/ -- originates, invests in, sells and services its own short-term real-estate secured loans on properties within the state of Arizona in the US. It underwrites loans for commercial, industrial and residential properties for acquisition, entitlement, development, construction and investment. Mortgages Ltd. was the subject of an involuntary chapter 7 petition dated June 20, 2008, filed by KGM Builders Inc. -- a contractor for Grace Communities, a borrower of the company -- before the U.S. Bankruptcy Court for the District of Arizona. Central & Monroe LLC and Osborn III Partners LLC, divisions of Grace Communities, sought the appointment of an interim trustee for Mortgages Ltd. in the chapter 7 proceeding. Mortgages Ltd. is also facing lawsuits filed by Grace Communities and Rightpath Limited Development Group for its alleged failure to fully fund loans. Mortgages Ltd. denied the charges. It has filed a motion to dismiss the Rightpath suit. The Debtor's case was converted to a chapter 11 proceeding on June 24, 2008 (Bankr. D. Ariz. Case No. 08-07465). Judge Sarah Sharer Curley presides over the case. Carolyn Johnsen, Esq., and Bradley Stevens, Esq., at Jennings, Strouss & Salmon P.L.C., replaced Todd A. Burgess, Esq., at Greenberg Traurig LLP, as counsel to the Debtor. As of Dec. 31, 2007, the Debtor had total assets of $358,416,681 and total debts of $350,169,423. MRS FIELDS: Files for Bankruptcy Under Chapter 11 in Delaware ------------------------------------------------------------- Mrs. Fields' Original Cookies, Inc. and its subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company disclosed in a regulatory filing with the Securities and Exchange Commission that it delivered to the Court a prepackaged Chapter 11 plan of reorganization, under which unsecured creditors will be paid in full, but holders of equity interests will be canceled. Deadline for voting to accept or reject the Plan is Sept. 15, 2008, at 5:00 p.m. Eastern Time. The company said that the prepackaged bankruptcy will improve the its balance sheet by: -- exchanging about $195 million in bondholder debt for cash; -- a controlling equity stake in the reorganized company; and -- new bonds. Bloomberg citing papers filed with the Court, says the company owes at least $1.5 million to unsecured creditors -- including Lindenmeyr Central, which is owed $451,785; Creative Resources, which is owed $428,976; and United Parcel Services Inc., which is owed $160,908. The company, Bloomberg says, has total assets of $139.1 million and total debts of $259.4 million -- including $195.8 million in long-term debt -- for the second quarter. Moreover, for the 26 weeks ended June 28, 2008, the company saw significant improvements in each of its businesses compared last year, including: -- 20.2% increase in revenues for Mrs. Fields Branded Retail; -- 5.3% increase in revenues for the combined Mrs. Fields Cookies business units; -- 1% increase in year-over-year sales during the second quarter for Mrs. Fields franchise stores; and -- 2.2 % increase in year-over-year sales during the second quarter for TCBY Enterprises Inc. Mrs. Fields' owns TCBY Enterprises. Employees, franchisees and vendors will not be adversely affected and the company will continue to deliver its customers products and services. In a joint statement, Michael Ward and John Lauck, interim co- chief executive officers of the company said, "We want to assure our employees, franchisees, customers, vendors, and other stakeholders that Mrs. Fields and TCBY remain strong, thriving brands. We see the filing of the prepackaged bankruptcy as a largely administrative matter since the bondholders holding the majority of our bonds have already agreed to the restructuring. Business will continue as usual throughout this process, and we have every confidence that the Company will emerge from Chapter 11 a more vital company ready to achieve strong growth in the future." The company selected Montgomery McCracken Walker & Rhoades LP as counsel; Skadden Arps Slate Meagher & Flom LLP as special corporate counsel; and Akin Gump Strauss Hauer & Feld LLP and Young Conaway Stargatt & Taylor LLP as co-counsel for the Ad Hoc Noteholder Committee. Blackstone Advisory Services LP was retained by the company as financial adviser, Bloomberg adds. The company also selected Epiq Bankruptcy Services LLC as claims agent. A full-text copy of the disclosure statement for the company's prepackaged Chapter 11 plan of reorganization is available for free at http://ResearchArchives.com/t/s?3120 About Mrs. Fields' Headquartered in Salt Lake City, Utah, Mrs. Fields' Original Cookies, Inc. -- http://www.mrsfields.com/-- makes and sells cookies and brownies in the United States. MRS FIELDS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Lead Debtor: Mrs. Fields' Original Cookies, Inc. 2855 East Cottonwood Parkway Suite 400 Salt Lake City, UT 84121 http://www.mrsfields.com/ Bankruptcy Case No.: 08-11953 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Mrs. Fields' Famous Brands, LLC 08-11954 Mrs. Fields' Financing Company, Inc. 08-11955 Mrs. Fields' Franchising, LLC 08-11956 PTF, LLC 08-11957 PMF, LLC 08-11958 GACCF, LLC 08-11959 GAMAN, LLC 08-11960 The Mrs. Fields' Brand, Inc. 08-11861 TCBY Systems, LLC 08-11962 Mrs. Fields Gifts, Inc. 08-11963 Mrs. Fields Cookies Australia 08-11964 TCBY International, Inc. 08-11965 TCBY of Texas, Inc. 08-11966 Type of Business: Operates a chain of cookie and baked goods stores Chapter 11 Petition Date: August 24, 2008 Court: District of Delaware Debtors' Counsel: David R. Hurst, Esq. Montgomery McCracken Walker & Rhoads LLP 1105 N. Market Street 15th Floor Wilmington, DE 19801 Tel: (302) 504-7828 Fax: (302) 504-7820 Email: dhurst@mmwr.com Mark L. Desgrosseilliers, Esq. Montgomery McCracken Walker & Rhoads LLP 1105 North Market Street 15th Floor Wilmington, DE 19801 Email: mdesgrosseilliers@mmwr.com Estimated Assets: $500,000 to $1 million Estimated Debts: $100 million to $500 million Debtors' Consolidated List of 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Linenmeyr Central Trade Debt $451,786 Creative Resources Trade Debt $428,976 United Parcel Service Trade Debt $160,908 Acosta, Inc. Trade Debt $117,209 Grant Heaton Productions Trade Debt $100,652 KPMG, LLP Professional Services $96,725 Gray, Plant, Mooty, Mooty Professional Services $95,419 & Bennett, PA Protiviti Trade Debt $94,071 Countryside Baking Co. Trade Debt $92,387 Inc. Natomas Meadows Two, LLC Trade Debt $85,243 Alexander's Print Advantage Trade Debt $80,825 Cheney Brothers, Inc. Trade Debt $80,389 Queue Creative Marketing Trade Debt $76,981 Group LLC XPEDX Trade Debt $71,380 Yarnell Ice Cream Company Trade Debt $69,760 Lime Public Relations & Trade Debt $66,984 Promo Lanter Distributing Trade Debt $59,152 United Facilities, Inc. Trade Debt $55,942 C.H. Robinson Trade Debt $55,113 Rastar Print Communications Trade Debt $54,615 M.W. JOHNSON: Court Disallows Hiring Affiliate as Broker -------------------------------------------------------- The U.S. Bankruptcy Court for the District of Minnesota on Aug. 20, 2008, ruled against M.W. Johnson Construction Inc. and M.W. Johnson Construction of Florida Inc. employing M.W. Johnson & Associates as their broker, William Rochelle at Bloomberg News says. According to Mr. Rochelle, the Official Committee of Unsecured Creditors and the United States Trustee have opposed the engagement saying that the proposed broker and the Debtors have the same owners. The Committee and the Trustee also argued that the proposed broker is a creditor and was paid $1.5 million in three months of bankruptcy proceedings, Mr. Rochelle says. Mr. Rochelle notes that the Debtors have 250 uncompleted or unsold homes. The Debtors' counsel have said that the Debtors might liquidate. Mr. Rochelle relates that the Debtors owe two secured creditors of at least $59 million. About M.W. Johnson Lakeville, Minnesota-based M.W. Johnson Construction Inc. -- http://www.mwjohnson.com/-- and M.W. Johnson Construction of Florida Inc. are custom homebuilders. They filed their chapter 11 petition on June 13, 2008 (Bankr. D. Minn. Case Nos. 08-32874 and 08-32876). Judge Robert J. Kressel presides over the case. Michael L. Meyer, Esq., at Ravich Meyer Kirkman McGrath Nauman, represent the Debtors in their restructuring efforts. The Debtors' schedules showed $62,400,721 in total assets and $54,673,496 in total liabilities. An Official Committee of Unsecured Creditors has been appointed in this case. NAMIREI-SHOWA: Files for Chapter 15 in Manhattan ------------------------------------------------ Namirei-Showa Co., Ltd. was placed under bankruptcy protection pursuant to Chapter 15 of the U.S. Bankruptcy Code before the U.S. Bankruptcy Court for the Southern District of New York. The petition was filed by Michiyoshi Kiuchi, who has been appointed receiver for the Debtor by the District Court of Osaka in Japan. Mr. Kiuchi disclosed that the Debtor is facing a lawsuit commenced by Intermare Transport GmbH, a German company, in March 2008. The lawsuit, which was filed before the U.S. District Court for the Southern District of New York seeks $35,455,068 from the Debtor and other defendants of an alleged certain maritime and admiralty claims. In May 2008, JPMorgan Chase Bank restrained property belonging to the Debtor in the District. The property amounted to $27,200. Mr. Kiuchi says Intermare is the only party that has asserted claims against Namirei in the U.S. The Debtor continues to do business. Mr. Kiuchi says the Debtor may be exposed to other claims in the U.S. during its rehabilitation in Japan. Given that Intermare has utilized provisional remedies to attach any and all property in the United States in furtherance of the Maritime Litigation, Mr. Kiuchi says temporary and preliminary relief under Chapter 15 pending the U.S. Court's determination with respect to the Chapter 15 petition, will potentially prevent irreparable harm to the Debtor should Intermare attempt to attach any additional funds wired to the U.S. The Japanese Proceeding is a collective judicial proceeding under Japanese law relating to insolvency of the Debtor in which the Debtor's assets are subject to the control and supervision of the Japanese court for the purpose of reorganization, according to Mr. Kiuchi. The receiver notes that the Debtor has $252 million in assets and $347 million in debts as of April 30, 2008. According to Mr. Kiuchi, the Debtor's principal assets in the United States consists of a JP Morgan Chase Bank account. About Namirei-Showa Based in Osaka, Japan, Namirei_Showa Co., Ltd. -- http://www.namirei-showa.co.jp-- designs and manufactures air conditioning equipment for ships. NAMIREI-SHOWA: Chapter 15 Petition Summary ------------------------------------------ Petitioner: Michiyoshi Kiuchi Debtor: Namirei-Showa Co., Ltd. Case No.: 08-13256 Type of Business: The Debtor designs and manufactures air conditioning equipment for ships. See http://www.namirei-showa.co.jp Chapter 15 Petition Date: August 21, 2008 Court: Southern District of New York (Manhattan) Judge: Burton R. Lifland Petitioner's Counsel: Jeffrey S. Margolin, Esq. Hughes Hubbard & Reed 1 Battery Park Plaza New York, NY 10004 Tel: (212) 837-6375 Fax: (212) 422-4726 Email: margolin@hugheshubbard.com Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million NATURADE INC: Posts $935,113 Net Loss in 2008 Second Quarter ------------------------------------------------------------ Naturade Inc. reported a net loss of $935,113 on net sales of $1,922,116 for the second quarter ended June 30, 2008, compared with a net loss of $1,053,989 on net sales of $1,330,394 for the same period last year. Gross profit for the three months ended June 30, 2008, increased $368,809 or 102 % to $731,431 as compared to $361,622 for the same period in 2007. Gross profit, as a percentage of sales increased from 27% to 38% of net sales in the three month period ended June 30, 2008, compared to the three month period ended June 30, 2007, due to decreased product costs related to the company's exit from Chapter 11 and subsequent improvement in vendor terms. Operating costs and expenses for the three months ended June 30, 2008, decreased by $155,587 to $1,027,987, or 54% of net sales, from $1,183,574, or 89% of net sales, for the same period in 2007. Interest expense for the three months ended June 30, 2008 increased $391,433 to $638,557 from $247,124 in the same period in 2007. Interest expense increased principally due an increase in the amortization of deferred financing fees and debt discounts of $327,203 as compared to the same period in 2007. The amortization is related to the recapitalization of the company resulting from the Plan of reorganization effective November 2007. Balance Sheet At June 30, 2008, the company's consolidated balance sheet showed $9,800,035 in total assets, $6,485,072 in total liabilities, and $3,314,963 in total stockhlders' equity. The company's consolidated balance sheet at June 30, 2008, also showed strained liquidity with $1,684,764 in total current assets available to pay $2,930,815 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2008, are available for free at http://researcharchives.com/t/s?310c Going Concern Doubt Haskell & White LLP, in Irvine, California, expressed substantial doubt about Naturade Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the period from Jan. 1, 2007, to Nov. 8, 2007 (Predecessor Company) and the period from Nov. 9, 2007, to Dec. 31, 2007 (Successor Company). The auditing firm pointed to the company's recurring losses from operations, net working capital deficit and recent Chapter 11 bankruptcy filing. About Naturade Inc. Headquartered in Anaheim, California, Naturade Inc. (OTC BB: NRDCQ) -- http://www.naturade.com/-- is a branded nutraceuticals marketing company. The company's products include low carbohydrate, high protein powders, nutritional supplements, joint health and arthritis pain relief products, and soy protein based powders. Its products are sold to the health food and mass market channels through distributors and directly to retailers in the United States and overseas. On Aug. 31, 2006, the company filed a voluntary petition to reorganize its business under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Central District of California. On Oct. 30, 2007, the Court confirmed the Debtor's Fifth Amended Joint Plan of Reorganization. The Plan of Reorganization became effective and the Debtor emerged from bankruptcy protection on Nov. 9, 2007. NEWBURGH INVESTMENT: Case Summary & 3 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Newburgh Investment Properties, LLC P.O. Box 851107 Westland, MI 48185 Bankruptcy Case No.: 08-60364 Type of Business: The Debtor is a lessor. Chapter 11 Petition Date: August 21, 2008 Court: Eastern District of Michigan (Detroit) Judge: Thomas J. Tucker Debtor's Counsel: Richard F. Fellrath (lawfell@wowway.com) 4056 Middlebury Drive Troy, MI 48085 Telephone (248) 519-5064 Fax (248) 519-5065 Total Assets: $2,800,001 Total Debts: $3,041,709 Debtor's 3 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ 5th/3rd Bank Collateral: $600 $466,000 Madisonville Ops Center Unsecured: $465,400 MD1M0C2N Cincinnati, OH 48051-3236 John Hamilton Loan $141,709 4915 West Six Mile Rd. Northville, MI 48150 Robert Ghannam Loan $60,000 C/O Steven George, PC 13700 Michigan Ave. Suite 220 Dearborn, MI 48126 NEWCOURT STREET: Fitch Resolves RWN Status, Drops Rating on Notes ----------------------------------------------------------------- Fitch Ratings has withdrawn these ratings without resolving the Rating Watch Negative status for Newcourt Street Finance Limited, effective immediately: -- EUR35,000,000 class A-1 notes 'AAA'; -- EUR45,000,000 class A-2 notes 'AAA'; -- EUR45,000,000 class B notes 'AA+'; -- EUR39,000,000 class C notes 'AA'; -- EUR33,000,000 class D notes 'AA-'; -- EUR30,000,000 class E notes 'A'; -- EUR15,000,000 class F notes 'A-'; -- EUR15,000,000 class G notes 'BBB'; -- EUR12,600,000 class H notes 'BB+'. The issuer disclosed noteholder approval removing Fitch as a rating agency from certain documents of the transaction. As a result of this amendment, Fitch does not expect to receive future reporting for this transaction. Fitch is unable to resolve the Rating Watch Negative that was placed on the notes on June 27, 2008 before withdrawal. This is because the manager, KBC Financial Products, is no longer willing to provide updated information on Newcourt Street Finance to Fitch. Fitch lacks sufficient information to give a fully informed opinion and thus resolve the current Rating Watch Negative status of the ratings. Fitch's policy on withdrawing ratings is to take into consideration whether it has access to sufficient information in assessing the credit quality of the notes. If Fitch decides to cease providing ratings, it will withdraw the ratings using the most current methodology and opinion on the credit risk of the notes. In this case, Fitch has decided to withdraw its ratings on these notes without resolving the Rating Watch Negative status. Fitch released its updated criteria for corporate CDOs on April 30, 2008. OCCULOGIX INC: Enters Into $2 Mil. Loan Agreement with OcuSense --------------------------------------------------------------- OccuLogix, Inc. entered into a loan agreement with OcuSense, Inc. on August 13, 2008, pursuant to which the company advanced to OcuSense a loan in an aggregate principal amount of $2,000,000, the proceeds of which are to be used by OcuSense for general corporate purposes. The Loan will bear interest at a rate of 12% per annum and will mature on the 270th day following the date of advance. The company currently holds a majority ownership interest in OcuSense (50.1% on a fully diluted basis and 57.62% on an issued and outstanding basis). On April 22, 2008, the company announced its intention to acquire the minority ownership interest in OcuSense that it does not already own. On August 1, 2008, the company filed a revised preliminary proxy statement to solicit the proxies of its stockholders for this proposed acquisition, among other proposed transactions. The company's revised preliminary proxy statement is currently the subject of review by the U.S. Securities and Exchange Commission. Following the completion of the SEC's review, the company will file and mail its final proxy statement. About OccuLogix Inc. Headquartered in Mississauga, Ontario, Canada, OccuLogix Inc. (Nasdaq: OCCX; TSX: OC) -- http://www.occulogix.com/-- is a healthcare company focused on ophthalmic devices for the diagnosis and treatment of age-related eye diseases. Going Concern Doubt Ernst & Young LLP, in Toronto, Canada, expressed substantial doubt about OccuLogix Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's recurring operating losses and working capital deficiency. LUMBER CO: Increased Competition Forces Bankruptcy -------------------------------------------------- Rena Delbridge of Newsminer.com reports that OK Lumber Co. Inc.'s bankruptcy is due to increased competition from big-box retailers and high utility costs according to Albert Dovbish, Esq. an attorney representing the business. In addition to OK Lumber's burden are leases on about six acres from the Alaska Railroad, Mr. Dovbish said. According to him, he was retained not to file bankruptcy, but to try to restructure debt the company has with Denali State Bank. Unfortunately, the bank sought foreclosure. Denali State Bank was originally owed $3 million mortgage, and was already paid off some $2 million, according to Mr. Dovbish. Based on Fairbanks, AK, OK Lumber Co., Inc. -- http://www.www.okace.com/-- was incorporated in 1972 by Angie and Norm Kruckenberg. The hardware and lumber business is now owned by their son Richard Kruckenberg. It filed for bankruptcy on July 31, 2008, (Bankr. D. Ala., Case No.: 08-00451). The Debtor disclosed estimated assets of $1,000,000 to $10,000,000 and estimated debts of $1,000,000 to $10,000,000. OPTEUM MORTGAGE: Moody's Junks 15 Class Certificates' Ratings ------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 24 tranches from 2 Alt-A transactions issued by Opteum Mortgage Acceptance Corporation. One tranche was placed on review for possible further downgrade. Additionally, 2 senior tranches were confirmed at Aaa. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, Alt-A mortgage loans. Complete rating actions are: Issuer: Opteum Mortgage Acceptance Corporation Asset Backed Pass- Through Certificates 2005-5 -- Cl. I-A2, Downgraded to Baa1 from Aaa -- Cl. II-A1B, Confirmed at Aaa -- Cl. II-A1C, Confirmed at Aaa -- Cl. II-A1D1, Downgraded to Baa1 from Aaa -- Cl. II-AN, Downgraded to A3 from Aaa -- Cl. M-1, Downgraded to Ba1 from Aa3 -- Cl. M-2, Downgraded to B2 from A3 -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to Caa2 from Ba3 -- Cl. M-5, Downgraded to Ca from B3 -- Cl. M-6, Downgraded to Ca from B3 -- Cl. M-8, Downgraded to C from Ca -- Cl. M-9, Downgraded to C from Ca -- Cl. M-10, Downgraded to C from Ca Issuer: Opteum Mortgage Acceptance Corporation Asset Backed Pass- Through Certificates 2006-2 -- Cl. A1B, Downgraded to A1 from Aaa -- Cl. A1C, Downgraded to A2 from Aaa -- Cl. A2, Downgraded to B1 from Aaa -- Cl. M-1, Downgraded to Caa1 from Ba3 -- Cl. M-2, Downgraded to Ca from B2 -- Cl. M-3, Downgraded to Ca from B3 -- Cl. M-4, Downgraded to C from B3 -- Cl. M-5, Downgraded to C from B3 -- Cl. M-6, Downgraded to C from Ca -- Cl. M-7, Downgraded to C from Ca -- Cl. M-8, Downgraded to C from Ca -- Cl. M-9, Downgraded to C from Ca Ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The tranches were confirmed due to additional enhancement provided by structural features. The actions described below are a result of Moody's on-going review process. OSYKA CORP: Judge Isgur Confirms Joint Chapter 11 Plan ------------------------------------------------------ The Hon. Marvin Isgur of the United States Bankruptcy Court for the Southern District of Texas confirmed a joint Chapter 11 plan of reorganization filed by Osyka Corporation and Osyka Permian LLC on June 20, 2008. Overview of the Plan The plan contemplates the reduction of the Debtors' overall debt and payment obligations by at least $82 million associated with corporate liabilities in order to realign their capital structure. The plan further provides more liquidity to the Debtors to continue to operate their business as a viable economic entity. Moreover, the plan is proposed in connection to a settlement agreement with J. Aron & Company and Texas Capital Bank, which provides the allocation of a minimum "purchase price" of at least $67,000,000. On July 10, 2008, Legado Resources LLC purchased all of the Debtors' assets for $77,000,000, free and clear of liens and interests. The sale is expected to close by Aug. 29, 2008. A full-text copy of the asset purchase agreement dated July 16, 2008, is available for free at: http://ResearchArchives.com/t/s?2fd8 The plan classifies claims against and interest in the Debtors in nine classes. The classification of treatments of claims and interests are: Treatment of Claims and Interests Type Estimated Estimated Class of Claims Treatment Amount Recovery ----- --------- --------- --------- --------- unclassified administrative $986,425 100% claims unclassified priority tax $1,148 100% claims A allowed other unimpaired $0 100% priority claims B other secured impaired $0 100% claims C allowed unimpaired $1,000,000 100% prepetition bank credit agreement claims D allowed impaired $61,246,978 100% prepetition junior credit agreement claims E allowed ISDA impaired $21,113,672 100% claims F warrants impaired $722,104 0% G allowed impaired $972,120 100% general unsecured claims H allowed impaired $1,500,000 0% intercompany claims I allowed equity unimpaired 100% interests The plan indicates that each estimated recovery is projected on assumption that the Debtors' total cash balances and cash collateral account on the plan's effective date exceeds $3,800,000, and that Class G claims do not surpass the Debtors' estimated amount of $974,120. As of June 13, 2008, the Debtors have $4,719,873 in cash. Class A allowed other priority claims will be paid in full in cash in an amount equal to the allowed priority claims after the distribution date. All allowed other priority claims, which are not due and payable by the plan's effective date, will be paid by the Debtors in the ordinary course of business. Unless agreed to a different treatment, each holder of Class B other secured claims will be paid in full, either (i) cash in the amount equal to 100% of the unpaid amount of the allowed other secured claim, (ii) the proceeds oft he sale of the collateral securing the claim, (iii) the collateral securing claim, (iv) a note with annual periodic cash payments of at least four years, (v) treatment that leaves unaltered the legal, equitable, and contractual rights to the holder is entitled, or (vi) other distribution as necessary to satisfy the requirements of the U.S. Bankruptcy Code. Holders of class E ISDA and class D allowed prepetition junior credit agreement claims are entitled to get their pro rata share of (i) 100% of equity in the reorganized Debtors and (ii) all of the excess cash collateral at least $200,000. However, in the event the Debtor consummate a sale to another party, holders will receive a pro rata share of (i) the applicable portion of the purchase price, (ii) 50% of excess cash collateral from $500,000 to $1,000,000, if any, and (iii) 10% of excess cash collateral at least $1 million, if any. The ISDA claim arose under a certain agreement dated May 10, 2006, entered between the Debtors' and J. Aron. Each holder of class G allowed general unsecured claims will get its pro rata share of (i) $200,000 in excess cash collateral and (ii) 50% of the net recovery, receive from the BIP Holdings LLC litigation, if any, after all allowed claims are paid. The BIP litigation is the causes of action arose out of the assignment of two sale and conveyance in 2006, between the Debtors and BIP, with respect to the sale of certain oil and gas leases and real property. Holders of class H allowed intercompany claims and class F warrant will not receive any distribution under the plan. All warrants will be extinguished as of the plan's effective date. Class I allowed equity interests of the Debtors will not be modified or impaired, unless Debtors and any interest holder agreed to in writing. A full-text copy of the disclosure statement is available for free at http://ResearchArchives.com/t/s?2eca A full-text copy of the Chapter 11 plan of reorganization is available for free at http://ResearchArchives.com/t/s?2ecb A full-text copy of the Settlement Agreement is available for free at http://ResearchArchives.com/t/s?2a74 About Osyka Corporation Headquartered in Houston, Texas, Osyka Corporation -- http://www.osyka.com/-- is an oil and gas company. The company filed for Chapter 11 protection on March 3, 2008 (Bankr. S.D. Tex. Case No.08-31467). H. Rey Stroube, III, Esq., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in this case to date. As reported in the Troubled Company Reporter on June 18, 2008, the Debtors' summary of schedules showed total assets of $109,754,313 and total debts of $83,792,755. OXFORD STREET: Fitch Withdraws Ratings on Nine Classes of Notes --------------------------------------------------------------- Fitch Ratings has withdrawn these Oxford Street Finance Limited ratings, effective immediately: -- EUR87,000,000 class A1 'A'; -- EUR80,000,000 class A2 'BBB'; -- EUR64,000,000 class B 'BB'; -- EUR43,000,000 class C 'B'; -- EUR33,000,000 class D 'CCC'; -- EUR28,000,000 class E 'CC'; -- EUR17,000,000 class F 'CC'; -- EUR16,000,000 class G 'CC'; -- EUR14,000,000 class H 'CC'. The issuer announced noteholder approval of an amendment removing Fitch as a rating agency from certain documents of the transaction. As a result of this amendment, Fitch does not expect to receive future reporting for this transaction. Fitch's policy on withdrawing ratings is to take into consideration whether it has access to sufficient information in assessing the credit quality of the notes. If Fitch decides to cease providing ratings, it will withdraw the ratings using the most current methodology and opinion on the credit risk of the notes. In this case, Fitch has decided to withdraw its ratings on these notes. Fitch released its updated criteria for corporate CDOs on April 30, 2008. PALM SUITES: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Palm Suites Land Trust c/o Bhaardwaj Seecharan 4786 W. Irlo Bronson Memorial Hwy. Kissimmee, FL 34746 Tel: (321) 287-7763 Bankruptcy Case No.: 08-07263 Related Information: Bhardwaaj Seecharan, trustee, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: August 20, 2008 Court: Middle District of Florida (Orlando) Debtor's Counsel: Jonathan R Williams, Esq. (jrwilliamslegal@gmail.com) Jonathan R. Williams, P.A. P.O. Box 9247 Daytona Beach, FL 32120 Tel: (386) 882-1686 Fax: (386) 957-1418 Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million A list of the Debtor's largest unsecured creditors is available for free at http://bankrupt.com/misc/FLmb08-07263.pdf PAPPAS TELECASTING: Can Access Cash Collateral for Another Week --------------------------------------------------------------- Bankruptcy Law360 reports that the U.S. Bankruptcy Court for the District of Delaware gave a seventh interim order allowing bankrupt Pappas Telecasting Inc. to access cash collateral from a bridge loan even though the lender has not received $30 million promised by the company's CEO over two years ago. About Pappas Telecasting Fresno, California-based Pappas Telecasting Inc., aka KMPH, aka KMPH-TV, and aka KMPH Fox 26, -- http://www.pappastv.com/-- and its affiliates are broadcasting companies. Founded in 1971, their stations reach over 15% of all U.S. households and over 32% of Hispanic households. Pappas and 21 affiliates filed chapter 11 petition on May 10, 2008 (Bankr. D. Del. Case No. 08-10915 through 08-10936). Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP represents the Debtors in their restructuring efforts. Administar Services Group LLC is the Debtors' notice and claims agent. The Debtors listed $100 million to $500 million in assets and debts when they filed for bankruptcy. Harry J. Pappas, the CEO and chairman of Pappas Telecasting and its debtor-affiliates, was the subject of a petition for Chapter 7 liquidation filed by creditors before the U.S. Bankruptcy Court for the District of Delaware. Mr. Pappas' wife Stella was also subject of the involuntary petition. The petitioning creditors are Fortress Credit Opportunites I LP, Fortress Credit Opportunites II LP, Ableco Finance LLC and Silver Oak Capital. John H. Knight, Esq., at Richards Layton & Finger, represents the Fortress Creditors. Adam G. Landis, Esq., at Landis Rath & Cobb LLP, in Wilmington, represents Ableco and Silver Oak. According to Bloomberg, the Debtors listed assets with a book value of $460 million and debt of $537 million, including inter- corporate debt. PARKER EXCAVATING: Court Okays Kutner Miller as Bankruptcy Counsel ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Colorado gave Parker Excavating, Inc. authority to employ Kutner Miller Brinen, P.C., as its bankruptcy counsel. Kutner Miller will provide the Debtor with legal advice with respect to its power and duties, assist the Debtor in the development of a plan of reorganization under Chapter 11, and file the necessary petitions, pleadings, reports, and actions which may be required in the continued administration of the Debtor's property under Chapter 11. Court documents did not disclose the hourly rates that the firm will charge the Debtor. Lee M. Kutner, Esq., a shareholder of Kutner Miller, assured the Court that the firm does not represent any interest adverse to the Debtor's estates. Pueblo, Colorado-based Parker Excavating, Inc., filed for Chapter 11 protection on July 2, 2008 (Bankr. D. Colo. Case No. 08-19552). Lee M. Kutner, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated liabilities of $1 million to $10 million. Its assets were not disclosed. PARKER EXCAVATING: Files Schedules of Assets & Liabilities ---------------------------------------------------------- Parker Excavating, Inc. filed with the U.S. Bankruptcy Court for the District of Colorado, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $10,550,561 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $2,687,242 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $4,996,299 ----------- ----------- TOTAL $10,550,561 $7,683,541 Pueblo, Colorado-based Parker Excavating, Inc., filed for Chapter 11 protection on July 2, 2008 (Bankr. D. Colo. Case No. 08-19552). Lee M. Kutner, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated liabilities of $1 million to $10 million. Its assets were not disclosed. PERFORMANCE LABS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Performance Labs, Inc. 5115 Douglas Fir Road Suite M Calabasas, CA 91302 Bankruptcy Case No.: 08-16121 Type of Business: The Debtor develops, distributes and sells nutritional supplements. Chapter 11 Petition Date: August 20, 2008 Court: Central District of California (San Fernando Valley) Judge: Maureen Tighe Debtor's Counsel: James R Selth (jim@wsrlaw.net) Weintraub & Selth, APC 12424 Wilshire Blvd Ste 1120 Los Angeles, CA 90025 Telephone (310) 207-1494 Fax (310) 207-0660 Total Assets: $100,001 to $500,000 Total Debts: $1,000,001 to $10 million A copy of Debtor's petition and a list of its 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/cacb08-16121.pdf PILOT HILL: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Pilot Hill Holdings, LLC PO Box 610 Pilot Hill, CA 95664 Bankruptcy Case No.: 08-31606 Type of Business: The Debtor is a real estate developer. Chapter 11 Petition Date: August 19, 2008 Court: Eastern District of California (Sacramento) Judge: Michael S. McManus Debtor's Counsel: W. Steven Shumway 2140 Professional Dr #250 Roseville, CA 95661 Telephone (916) 789-8821 Estimated Assets: $6,139,844 Estimated Debts: $1,247,759 The Debtor did not file a list of its largest unsecured creditors. POPE & TALBOT: Chapter 15 Petition Summary ------------------------------------------ Petitioner: PricewaterhouseCoopers Inc. c/o Duane Morris LLP 1100 North Market Street Wilmington, DE 19801 Debtor: Pope & Talbot, Inc. 1500 SW First Avenue Suite 200 Portland, OR 97201 Case No.: 08-11933 Debtor-affiliates having pending Chapter 7 cases that also filed separate Chapter 15 petitions: Entity Case No. ------ -------- Penn Timber, Inc. 08-11935 Pope & Talbot Lumber Sales, Inc. 08-11936 Pope & Talbot Pulp Sales U.S., Inc. 08-11937 Pope & Talbot Relocation Services, Inc. 08-11938 Pope & Talbot Spearfish Limited Partnership 08-11939 P&T Power Company 08-11940 Mackenzie Pulp Land Ltd. 08-11941 Pope & Talbot Ltd. 08-11942 P&T Factoring Limited Partnership 08-11943 P&T Finance One Limited Partnership 08-11944 P&T Finance Three LLC 08-11945 P&T Finance Two Limited Partnership 08-11946 P&T Funding Ltd. 08-11947 P&T LFP Investment Limited Partnership 08-11948 Type of Business: The Debtors are into pulp and wood products business. See http://www.poptal.com/ Chapter 15 Petition Date: August 22, 2008 Court: District of Delaware (Delaware) Petitioner's Counsel: Michael R. Lastowski, Esq. Duane Morris LLP 1100 North Market Street Suite 1200 Wilmington, DE 19801-1246 Tel: (302) 657-4900 Fax: (302) 657-4901 Email: mlastowski@duanemorris.com Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million PORT BARRE: Moody's Confirms Corporate Family Rating at B2 ---------------------------------------------------------- Moody's Investors Service affirmed the B2 Corporate Family Rating and stable outlook on Port Barre Investments, LLC and the B2 ratings on its Term Loan A and Term Loan B. Although the project is facing schedule delays and modest continued rising cost pressures, the B2 ratings and stable outlook remain supported by the sponsors' continued willingness to contribute additional equity to the project to fund cash flow shortfalls. In addition, the initial B2 ratings already incorporated a certain degree of delay and cost overrun risks inherent to salt dome storage development. Retention of the stable outlook is contingent on cavern one beginning commercial operations on-time in the beginning of the fourth quarter of 2008 in accordance with the construction schedule and continued support by project sponsors in the event of future cash flow shortfalls. Bobcat is expected to generate lower cash flows in 2008 and 2009 than previously projected as a result of schedule delays due to a salt fall experienced from the roof of cavern one. As a result of the salt fall, Bobcat expects that cavern one will commence operations in the beginning of the fourth quarter of 2008 with a working gas capacity of 5.3 Bcf, 32% lower than the planned capacity of 7.8 Bcf. According to third party reviews, the cavern has been deemed stable and suitable for high-cycle natural gas storage, with adequate remaining ceiling thickness. While additional salt falls are possible, they are not expected to have a material impact on the ability to provide high-cycle natural gas storage service. In addition, management has undertaken certain steps that it expects will help partially mitigate the risk of further salt falls. The cavern is expected to be leached to its full build out capacity by year end 2009, and Bobcat has amended two of its precedent agreements with minimal changes to accommodate the new schedule. The project has also experienced moderate delays related to weather conditions and the timely receipt of critical materials and equipment. In addition, project costs have continued to face modest upward pressure since December 2007, with total project costs of approximately $333 million up 5% from the December 2007 estimate. Total project costs are now up 43% since the time of the initial rating. Moody's notes that the project continues to face the risk of additional cost overruns and possible delays, including delays due to weather, equipment or labor constrains, or further technical issues. Remaining uncommitted costs are estimated to be roughly $60 million, with the majority being labor. Bobcat is still waiting for certain equipment to be delivered to the site that is needed before the compressor station and the meter stations at the pipeline interconnects can be completed. Management expects to receive the remaining outstanding items in sufficient time so that cavern one will begin commercial operations on-time by Nov. 1, 2009 and so that cavern two, which is currently being leached, will begin commercial operations by June 2009. The project sponsors have agreed to contribute an additional $13 million of equity, which will cover the expected reduced cash flow from cavern one during the construction period and provide for additional construction and cost contingencies. The equity will be comprised of $6.5 million from Haddington Energy Partners III, LP and the Bobcat management team and a guarantee from GE to fund an additional $6.5 million, as needed. Including the first equity contingency commitment of $18.7 million, Bobcat has budgeted to use roughly $20 million of the equity contingencies leaving a cushion of approximately $12 million. In all, Bobcat's sponsors will have committed roughly $86 million to the project in addition to its initial equity contribution of approximately $61 million, which represents a high degree of equity funding relative to other rated natural gas salt dome storage developments. Port Barre Investments, LLC is headquartered in Houston, Texas, and is a private special purpose entity owned 50% by GE Energy Financial Services and 50% by Port Barre Holdings, LLC, which in turn is 99% owned by Haddington Energy Partners III LP and 1% by Bobcat. PROBE MANUFACTURING: Jaspers Hall Expresses Going Concern Doubt --------------------------------------------------------------- Denver-based Jaspers + Hall, PC, raised substantial doubt about the ability of Probe Manufacturing, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company's accumulated deficit from operations and its difficulties in maintaining sufficient working capital. The company had a net profit of $374,896, generated $668,293 in net cash from operations and improved its total stockholders deficit by $472,433 for the year ended, Dec. 31, 2007. However, the company still had a working capital deficit of $174,657 and a shareholder's deficit of $273,030 as of Dec. 31, 2007. Therefore, the ability of the company to operate as a going concern is still dependent upon its ability to obtain sufficient debt or equity capital and to continue generating positive cash flow from operations. The company posted net income of $374,896 on total sales of $6,882,302 for the year ended Dec. 31, 2007, as compared with net income of $150,894 on total sales of $9,310,464 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $1,897,127 in total assets and $2,170,157 in total liabilities, resulting in a $273,030 stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $1,685,345 in total current assets available to pay $1,860,002 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?310d About Probe Manufacturing Based in Lake Forest, Calif., Probe Manufacturing Inc. (OTCBB: PMFI) -- http://www.probemi.com/-- provides electronics manufacturing services to original equipment manufacturers of industrial, automotive, semiconductor, medical, communication, military, and high technology products. It offers engineering, supply chain management, and manufacturing services. The company's engineering services include product design, printed circuit board layout, prototyping, and test development. Its supply chain management solutions comprise purchasing, management of materials, and order fulfillment. The company's manufacturing services include printed circuit board assembly, subsystem assembly, box build and systems integration, the process of integrating sub-systems, and downloading software before producing a fully configured product. It also offers computer-aided, in- circuit testing of assembled printed circuit boards; and final system assembly, and test assemblies and modules, as well as distribution services. The company was founded in 1993. It was formerly known as Probe Manufacturing Industries, Inc., and changed its name to Probe Manufacturing Inc., in 2005. PRUDENTIAL CRANBROOK: Files for Chapter 11 Bankruptcy ----------------------------------------------------- Prudential Cranbrook Realtors filed for Chapter 11 bankruptcy protection after failing to reach a settlement with a creditor, said George Ulrych, owner and broker, according to Detroit Free Press. The filing, made Aug. 19, was announced to 160 employees. Prudential Cranbrook listed in court documents more than $1 million in liabilities and from $500,001 to $1 million in assets with more than 100 creditors, according to the report. RADIO ONE: S&P Affirms 'B' Credit Rating Affirmed; Outlook Neg -------------------------------------------------------------- Standard & Poor's Rating Services affirmed its ratings on Lanham, Md.-based radio broadcaster Radio One Inc., including the 'B' corporate credit rating, and removed them from CreditWatch, where they were placed with negative implications Feb. 26, 2008. The rating outlook is negative. At the same time, S&P assigned a recovery rating of '6' to Radio One's senior subordinated debt, indicating its expectation of negligible (0%-10%) recovery in the event of a payment default. The 'CCC+' issue-level rating on this debt (two notches lower than the 'B' corporate credit rating on the company) was affirmed and removed from CreditWatch in conjunction with the affirmation and removal from CreditWatch of the corporate credit rating. "The ratings affirmation reflects Radio One's increased headroom against financial covenants following the sale of its Los Angeles radio station," said Standard & Poor's credit analyst Michael Altberg, "and a subsequent debt repayment of roughly $69 million." The negative outlook reflects vulnerability to radio segment secular weakness, which could again jeopardize covenant compliance. REGATTA BAY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Regatta Bay, L.L.C. P.O. Box 13311 Scottsdale, AZ 85267 Bankruptcy Case No.: 08-10838 Related Information: John D. Wright, manager, filed the petition on the Debtor' behalf. Chapter 11 Petition Date: August 20, 2008 Court: District of Arizona (Phoenix) Judge: Randolph J. Haines Debtor's Counsel: David WM Engelman, Esq. (dwe@engelmanberger.com) Engelman Berger, P.C. 3636 North Central Avenue, #700 Phoenix, AZ 85012 Tel: (602) 271-9090 Fax: (602) 222-4999 Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The Debtor did not file a list of its largest unsecured creditors. REGENT STREET: Fitch Withdraws Ratings on Nine Classes of Notes --------------------------------------------------------------- Fitch Ratings has withdrawn the ratings on these classes of Regent Street Finance Limited, effective immediately: -- EUR93,550,000 class A-1 'A+'; -- EUR120,000,000 class A-2 'A-'; -- EUR112,500,000 class B 'BBB'; -- EUR105,000,000 class C 'BB'; -- EUR82,500,000 class D 'CCC'; -- EUR67,500,000 class E 'CC'; -- EUR40,000,000 class F 'CC'; -- EUR37,500,000 class G 'CC'; -- EUR30,000,000 class H 'CC'. The issuer announced noteholder approval of an amendment removing Fitch as a rating agency from certain documents of the transaction. As a result of this amendment, Fitch does not expect to receive future reporting for this transaction. Fitch's policy on withdrawing ratings is to take into consideration whether it has access to sufficient information in assessing the credit quality of the notes. If Fitch decides to cease providing ratings, it will withdraw the ratings using the most current methodology and opinion on the credit risk of the notes. In this case, Fitch has decided to withdraw its ratings on these notes. Fitch released its updated criteria for corporate CDOs on April 30, 2008. REGINA MEDICAL: Weakened Financials Cue S&P Rating Cut to 'BB+' --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its underlying rating (SPUR) on Hastings, Minn.'s series 1998 health care facility revenue bonds, issued for Regina Medical Center, one notch to 'BB+' from 'BBB-' due to the medical center's weakened overall financial profile. The outlook is negative. Regina Medical Center has recently experienced uneven financial operations, including operating and excess losses in 2007 and through the nine months of interim 2008. In addition, some reduction in financial flexibility has occurred as unrestricted liquidity has remained flat and debt has increased incrementally. While a closer affiliation with Allina Health System (A) and its physicians could help improve financial operations for the long term, the overall financial profile's weakening has resulted in the downgrade. More specifically, the downgrade and new outlook reflect the medical center's operating and excess losses last fiscal year that have continued through the interim nine months, resulting in decreased annual debt service coverage of 1.45x and maximum annual debt service coverage of 1.20x; and more-limited financial flexibility due to flat unrestricted liquidity over the past few years, coupled with increases in incremental debt and some balance sheet dilution due to growing operating costs related to physician expenses. The negative outlook reflects Regina Medical Center's two years of losses and ongoing weak debt service coverage, coupled with a balance sheet that gives Regina limited financial flexibility. "If Regina were to achieve its improvement plan targets while ensuring the balance sheet remains consistent with rating level medians, S&P might return the outlook to stable within the next one to two years," said Standard & Poor's credit analyst Suzie Desai. Factors supporting the rating are the medical center's turnaround plan to reach 1% operating margins by fiscal 2009 -- As of August 2008, management has already implemented improvements that should help stabilize operations over the next year; history of growing volumes due to an expanding service area -- an improved relationship with Allina Health System and Allina Medical Clinic should be a further benefit -- According to management, however, interim 2008 volumes are down compared with 2007 levels but are stable with previous-year levels; limited competition in the immediate service area and a new affiliation with Allina Medical Clinic that should minimize some of the recent competition; and location in a service area and county with positive demographic trends. In addition, high patient out-migration to the Twin Cities continues. The rating action affects roughly $12.675 million of debt outstanding. RELIANT ENERGY: Seeks Sept. 8 Extension of Plan Filing Period ------------------------------------------------------------- Reliant Energy Channelview L.P. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to extend their exclusive plan filing period until Sept. 8, 2008, William Rochelle at Bloomberg News says. This is the Debtors' fifth extension request, Mr. Rochelle notes. A settlement as part of a $500 million sale to Global Infrastructure Management LLC allowed the Debtors to have funds to pay creditors in full, Mr. Rochelle relates. The Debtors owe secured creditors $379 million and unsecured creditors $29 million, according to the report. About Reliant Energy Channelview Based in Houston, Reliant Energy Channelview L.P. owns a power plant located near Houston, and is an indirect wholly owned subsidiary of Reliant Energy Inc. -- http://www.reliant.com/-- The company and its three affiliates, Reliant Energy Channelview (Texas) LLC, Reliant Energy Channelview (Delaware) LLC, and Reliant Energy Services Channelview LLC filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Del. Lead Case No. 07-11160). Jason M. Madron, Esq., Lee E. Kaufman, Esq., Mark D. Collins, Esq., Paul Noble Heath, Esq., Richards, Robert J. Stearn Jr., Esq., at Layton & Finger P.A., and Timothy P. Cairns, Pachulski Stang Ziehl & Jones represent the Debtors. The U.S. Trustee for Region 3 appointed an Official Committee of Unsecured Creditors in these cases. David B. Stratton, Esq., and Evelyn J. Meltzer, Esq., at Pepper Hamiltion LLP, represent the Committee. When the Debtors filed for protection from their creditors, they listed total assets of $362,000,000 and total debts of $342,000,000. * * * AS reported in the Troubled Company Reporter on June 5, 2008, Standard & Poor's Ratings Services raised the corporate credit rating of Reliant Energy Inc., and its subsidiaries Orion Power Holdings Inc. and Reliant Energy Mid-Atlantic Power Holdings LLC to 'BB-' from 'B'. S&P also raised the rating on Reliant's secured debt facilities, consisting of the $500 million secured revolver, $250 million synthetic LOC facility, and $667 million outstanding senior secured notes, to 'BB+' from 'BB-' and affirmed the recovery rating on these facilities at '1', indicating a very high expectation (90% to 100%) for recovery of principal in a payment default scenario. RMBS SECURTIES: Moody's Junks 101 Classes of Notes' Ratings ----------------------------------------------------------- Moody's Investors Service downgraded the ratings of 101 classes of notes issued by 29 collateralized debt obligations backed primarily by portfolios of RMBS securities and CDO securities. Two of the rating downgrades were left on review for possible further downgrade. In addition, Moody's has withdrawn the ratings on two ABS CDO Notes because the Notes have been paid in full. The CDO transactions and specific Notes affected by rating action are: Issuer: ACA ABS 2007-2 Class Description: U.S. $33,600,000 Class X Senior Secured Fixed Rate Notes due July 2010 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Issuer: Bonifacius, Limited Class Description: U.S. $1,625,000,000 Class A-1M Floating Rate Senior Secured Notes Due 2047 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $225,000,000 Class A-1Q Floating Rate Senior Secured Notes Due 2047 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $125,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $115,000,000 Class A-3 Floating Rate Senior Secured Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $55,000,000 Class A-4 Floating Rate Senior Secured Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $275,000,000 Class A-1J Loan -- Prior Rating: Ca -- Current Rating: C Issuer: Brooklyn Structured Finance CDO, Ltd. Class Description: U.S.$890,000,000 Class A1S Senior Floating Rate Notes Due 2047 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S.$40,000,000 Class A1J Senior Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$35,000,000 Class A2 Senior Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Careel Bay CDO Limited Class Description: U.S.$500,000,000 Class A1S Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Issuer: Hartshorne CDO I, Ltd. Class Description: U.S.$16,100,000 Class X Senior Secured Fixed Rate Notes Due 2013 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: WR Class Description: U.S.$625,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Kleros Real Estate CDO III, Ltd. Class Description: U.S. $815,000,000 Class A-1A First Priority Senior Secured Floating Rate Delayed Draw Notes due 2046 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $60,000,000 Class A-1B Second Priority Senior Secured Floating Rate Notes due 2046 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $70,000,000 Class A-2 Third Priority Senior Secured Floating Rate Notes due 2046 -- Prior Rating: Ca -- Current Rating: C Issuer: Lancer Funding II, Ltd. Class Description: U.S. $39,000,000 Class X Senior Secured Fixed Rate Notes Due 2013 -- Prior Rating: B1, on review with direction uncertain -- Current Rating: WR Class Description: U.S. $600,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Issuer: Markov CDO I, Ltd. Class Description: U.S. $1,600,000,000 Class S Senior Floating Rate Notes due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Issuer: Mystic Point CDO, Ltd. Class Description: U.S.$325,000,000 Class A-1 Senior Secured Unfunded Notes Due 2047 -- Prior Rating: B3, on review with direction uncertain -- Current Rating: Ca Issuer: Octans I CDO Ltd. Class Description: U.S.$975,00,000 Class A-1 First Priority Senior Secured Floating Rate Notes due 2041 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Issuer: Preston CDO I, Ltd. Class Description: U.S. $5,400,000 Class X Senior Secured Fixed Rate Notes Due 2013 -- Prior Rating: A1, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $213,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2037 -- Prior Rating: Ca -- Current Rating: C Issuer: STACK 2005-2 LTD. Class Description: Class A Senior Variable Funding Floating Rate Notes due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Class Description: U.S.$ 50,000,000 Class B Senior Floating Rate Notes due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: C Class Description: U.S.$ 40,000,000 Class C Senior Floating Rate Notes due 2046 -- Prior Rating: Ca -- Current Rating: C Issuer: Stack 2007-1 Ltd. Class Description: U.S. $600,000,000 Class A1A Floating Rate Notes Due 2047 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: C Class Description: U.S. $150,000,000 Class A1B Floating Rate Notes Due 2047 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: C Class Description: U.S. $150,000,000 Class A2 Floating Rate Notes Due 2047 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: C Class Description: U.S. $225,000,000 Class A3 Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $151,000,000 Class A4 Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Vertical ABS CDO 2007-2, Ltd. Class Description: U.S. $22,000,000 Class X Senior Secured Fixed Rate Notes due 2014 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $360,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes due August 12, 2047 -- Prior Rating: Ca -- Current Rating: C In each case noted above, Moody's has been informed that the liquidation has been completed and the Trustee has made a final payment distribution, applying the proceeds of the liquidation in accordance with applicable priority of payment provisions of the Indenture. The rating actions noted above reflect the changes in severity of loss associated with CDO tranches and reflect the final liquidation distribution. According to Moody's, with regard to each of the following rating actions, Moody's has not received notice from the respective Trustee that a final distribution of liquidation proceeds has been made. Accordingly, the following rating actions reflect the changes in severity of loss based on anticipated liquidation proceeds. Issuer: Aventine Hill CDO I, Ltd. Class Description: U.S. $38,600,000 Class X Senior Secured Fixed Rate Notes Due 2014 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $414,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Class Description: U.S. $111,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $96,750,000 Class A2 Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $39,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $28,500,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $19,500,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $12,375,000 Class I Subordinated Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: CAMBER 6 plc Class Description: U.S.$ 487,400,000 Class A-1 Senior Variable Funding Floating Rate Notes Due 2043 -- Prior Rating: B3, on review with direction uncertain -- Current Rating: Ca Class Description: U.S.$ 487,400,000 Class A-2 Senior Floating Rate Notes Due 2043 -- Prior Rating: B3, on review with direction uncertain -- Current Rating: Ca Issuer: Cherry Creek CDO I, Ltd. Class Description: U.S.$195,000,000 Class A1S Senior Floating Rate Notes Due May 2046 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S.$34,000,000 Class A1J Senior Floating Rate Notes Due May 2046 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$25,000,000 Class A2 Senior Floating Rate Notes Due May 2046 -- Prior Rating: Ca -- Current Rating: C Issuer: Duke Funding XIII, Ltd. Class Description: U.S. $50,400,000 Class X Senior Secured Fixed Rate Notes Due 2015 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $944,000,000 Class A1SVF Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Gulf Stream-Atlantic CDO 2007-1, Ltd. Class Description: U.S. $300,000,000 Class A1-VF Senior Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $93,000,000 Class A-2 Senior Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $35,000,000 Class B Senior Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Libertas Preferred Funding IV, Ltd. Class Description: U.S.$200,000,000 Class A-1 First Priority Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S.$100,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$50,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$27,500,000 Class A-4 Fourth Priority Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$34,000,000 Class B Fifth Priority Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$33,500,000 Class C Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$22,500,000 Class D Seventh Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$13,500,000 Class E Eighth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Longridge ABS CDO II, Ltd. Class Description: U.S.$275,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Class Description: U.S.$85,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$45,000,000 Class A2S Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$16,500,000 Class A2J Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$15,000,000 Class A3S Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$10,000,000 Class A3J Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$6,000,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$12,500,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$10,000,000 Class B3 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$5,000,000 Class C Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Ca -- Current Rating: C Issuer: Neptune CDO IV, Ltd. Class Description: Class A-1 Swap -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Class Description: Class A-2 Senior Floating Rate Notes due October 2046 -- Prior Rating: Ca -- Current Rating: C Issuer: Norma CDO I Ltd. Class Description: U.S. $975,000,000 Class A-1 First Priority Senior Secured Floating Rate Notes Due 2049 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $150,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $86,000,000 Class B Third Priority Senior Secured Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $50,000,000 Class C Fourth Priority Senior Secured Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $74,000,000 Class D Fifth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $65,000,000 Class E Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $12,000,000 Class F Seventh Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2049 -- Prior Rating: Ca -- Current Rating: C Issuer: Octans II CDO Ltd. Class Description: U.S.$41,000,000 Class A-2 Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$100,000,000 Class A-3A Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$54,000,000 Class A-3B Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$108,000,000 Class B Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$78,000,000 Class C-1 Deferrable Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$31,500,000 Class C-2 Deferrable Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$51,000,000 Class D Deferrable Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$45,000,000 Class X-1 Deferrable Secured Fixed Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S.$ 945,000,000 Class A-1 Swap -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Issuer: Pinnacle Peak CDO I, Ltd. Class Description: U.S. $750,000,000 Class A1M Floating Rate Notes Due 2047 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade Class Description: U.S. $265,000,000 Class A1Q Floating Rate Notes Due 2047 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade Class Description: U.S. $260,000,000 Class A2 term loan made pursuant to the Class A2 Loan Agreement -- Prior Rating: Ca -- Current Rating: C Issuer: Sorin CDO V Ltd. Class Description: U.S.$402,000,000 Class A-1S Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Ca Class Description: U.S.$66,000,000 Class A-1J Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Class Description: U.S.$60,000,000 Class A-2 Senior Secured Floating Rate Notes Due 2051 -- Prior Rating: Ca -- Current Rating: C Issuer: Tenorite CDO I Ltd. Class Description: Up to U.S. $550,000,000 Class A Notes -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $200,000,000 Class B Senior Floating Rate Notes Due 2057 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $90,000,000 Class C Senior Floating Rate Notes Due 2057 -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $60,000,000 Class D Senior Floating Rate Notes Due 2057 -- Prior Rating: Ca -- Current Rating: C Issuer: Timberwolf I, Ltd. Class Description: U.S.$ 9,000,000 Class S-1 Floating Rate Notes Due 2011 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Issuer: Western Springs CDO Ltd. Class Description: U.S. $200,000,000 Class A-1 First Priority Senior Secured Floating Rate Notes -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Class Description: U.S. $125,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $64,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $20,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes -- Prior Rating: Ca -- Current Rating: C Class Description: U.S. $9,500,000 Class C Fifth Priority Senior Secured Floating Rate Notes -- Prior Rating: Ca -- Current Rating: C Moody's explained that each of the transactions has experienced an event of default under the applicable Indenture. As provided in Article V of the CDO Indenture, during the occurrence and continuance of an Event of Default, certain parties to the transaction may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. In this regard, the Trustee of each CDO notified Moody's that it was directed to dispose of or terminate all of the CDO Collateral. SAIDUTT INC: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Saidutt, Inc. dba Executive Inn PO Box 988 Opp, AL 36467-0988 Bankruptcy Case No.: 08-11322 Related Information: Nagarbhai Patel, president, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: August 21, 2008 Court: Middle District of Alabama (Dothan) Debtor's Counsel: Collier H. Espy, Jr. (kc@empcc.com) Espy, Metcalf & Espy, P.C. P.O. Drawer 6504 Dothan, AL 36302-6504 Tel: (334) 793-6288 Estimated Assets: $1 million to $10 million Estimated Debts: $500,000 to $1 million A list of the Debtor's largest unsecured creditors is available for free at http://bankrupt.com/misc/ALmb08-11322.pdf SGS INV: Moody's Rates $15 Million Class D Interests Notes at Ba3 ----------------------------------------------------------------- Moody's Investors Service downgraded the rating of these notes issued by SGS Inv. Grade Credit Fund (Wayfarer 2006-2), Ltd.: Class Description: $60,000,000 Class A-2 Floating Rate Notes, due December 2013 -- Prior Rating: Aaa -- Current Rating: Aa1 Class Description: $20,000,000 Class B Floating Rate Notes, due December 2013 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: A2 Class Description: $10,000,000 Class C Floating Rate Deferrable Interest Notes, due December 2013 -- Prior Rating: A1, on review for possible downgrade -- Current Rating: Baa3 Class Description: $15,000,000 Class D Floating Rate Deferrable Interest Notes, due December 2013 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: Ba3 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 corporate securities. STAMFORD CENTER: Files for Bankruptcy in Connecticut ---------------------------------------------------- Stamford Center for the Arts Inc. filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Connecticut. Stamford Center's board of directors voted to restructure the company's structure to address its financial difficulties. The company's board reviewed the organization's finances over the past several months and has concluded that the existing debt combined with the limited operating capital available to present and produce shows require a new operating structure. According to Bloomberg News, the company listed total assets of between $100 million and $50 million and debts of more than $10 million. Bloomberg, citing papers filed with the Court, relates that state funding was slashed to $500,000 from $2.4 million due to liquidity crunch. State senator Andrew McDonald and other legislators said in a statement that they are committed to restore funding for the company, Bloomberg says. They are now seeking Governor Mary Jodi Rell's assistance, the report notes. "We see this as an opportunity and an important step in building a revitalized SCA," stated Michael L. Widland, Chairman of the SCA Board. "Shortfalls in anticipated program revenues along with reduced State support have resulted in a financial situation whereby SCA cannot continue under its current structure. With the time frames and opportunities provided under Chapter 11, we intend to move forward with a comprehensive reorganization to diversify our revenue streams and programming while rebuilding community and government support. Of course, The Rich Forum and The Palace Theatre will remain open and operating during development of this new business plan." The SCA's short-term plan allows the two facilities to operate while the new long-term business plan is developed. During this time SCA will employ a minimal staff who will work with outside promoters, other regional and local arts organizations, and civic groups to continue to bring a season of cultural and entertainment programs to downtown Stamford. "The Board and the Stamford community believe SCA is an important community resource as evidenced by continued support from many corners of the City," said Mr. Widland. "Many corporations, foundations, and individuals have made substantial commitments. With this kind of support and the backing of the entire Stamford community, we will move forward to reorganize the company, make changes in our operations and programming, and develop sustainable revenue streams that will insure our ultimate success." The Show Must Go On The company said the Indigo Girls remain on the schedule. Other shows booked with outside agencies this season include Roberta Flack, Bob Woodward, Suzanne Vega, Brian Regan, Ailey II, Lisa Williams, Lisa Lampinelli, Jesus Christ Superstar, and perennial favorites like Warren Miller's ski adventure films along with performances by the Stamford Symphony Orchestra, Connecticut Grand Opera, Connecticut Ballet, the Young Artists Philharmonic, and the Namaskaar Foundation. While more shows are being added to the schedule every day, other shows previously announced by SCA will not be presented. Gift cards will be issued to ticket holders for cancelled performances for use at any other performances during the season. About Stamford Center Headquartered in Stamford, Connecticut, Stamford Center for the Arts Inc. fkn Stamford Theatre Partnership -- http://www.stamfordcenterforthearts.org/-- was created by Champion International Corp., Pitney Bowes Inc. and F.D. Rich Company Inc. STAR GAS: Fitch Affirms B IDR and B+/RR3 $10.25% Sr. Notes Rating ----------------------------------------------------------------- Fitch Ratings has affirmed the ratings for Star Gas Partners L.P. as: -- Issuer Default Rating 'B'; -- Outstanding 10.25% senior unsecured notes due 2013, co-issued with its special purpose financing subsidiary Star Gas Finance Company, 'B+/RR3'. The notes have a Recovery Rating of 'RR3'. The Rating Outlook is Stable. Approximately $173 million of notes remain outstanding. Star Gas has performed according to Fitch's expectation during its current fiscal year through June 30, 2008 despite a challenging operating environment characterized by high commodity prices, increased customer conservation and margin pressures. While many of these challenges will remain for fiscal 2009, Star Gas has positioned itself to operate the business under these conditions and is generating sufficient cash flow to maintain its current rating and meet the company's financial obligations, which include resuming distributions on its limited partner units in October 2008. Fitch projects fiscal 2008 EBITDA of approximately $52 million, debt-to-EBITDA of approximately 3.4 times (x) and interest coverage of 3.7x. In addition the company should have ample liquidity going into the 2008-2009 heating season with a projected zero balance on its Petroleum Heat and Power Company (Petro) subsidiary bank facility and over $90 million of cash on hand in September. The primary rating concerns are the company's liquidity position and its ability to operate in a historically high commodity price environment. Heating oil spot prices increased 40% during the heating season (October through March) and on average, heating oil prices were 58% higher during the 2007-2008 heating season than the prior year. While heating oil prices have fallen off the $4.08 per gallon high, current spot prices are still over 50% higher than this time last year. As an oil retailer, Star Gas attempts to pass on heating oil cost increases to its consumers and has, on average, been successful in doing so. In fact, Star Gas was able to increase its gross margin slightly during the most recent heating season versus the prior year even in a difficult operating environment. Despite its ability to maintain its margin, Star Gas' financial performance is affected by high commodity costs through increased customer conservation, accelerated natural gas conversions, an inability to stem attrition and the increased use of its Petro working capital facility to finance working capital needs during the heating season. During the 2006-2007 heating season Star Gas did not access its bank lines to fund working capital needs due to a strong cash balance and a more favorable operating environment. During this past heating season, Star Gas did access bank borrowings in order to finance increased accounts receivables and inventories during a sharp increase in heating oil prices while maintaining a comfortable margin with respect to borrowing base availability. As a means of determining whether Star Gas has sufficient liquidity to manage through a further increase in commodity prices, Fitch performed a 24 month sensitivity which projected working capital needs and assumed no additional margin growth, no improvement in attrition and additional customer conservation. Under this scenario, Star Gas would have sufficient liquidity to finance working capital needs with heating oil prices of $5.00 per gallon. If high prices resulted in increased attrition/ conservation it would provide short-term liquidity relief as working capital deficits would be reduced during the season but would have more serious long-term effects on the company's cash flow generation and credit profile, which would have to be evaluated at that time. Over the past two years Petro has made efforts to move customers away from fixed price contracts to capped or ceiling pricing. With the bulk of its protected customers on capped pricing, Petro should benefit from increased pricing flexibility. Petro also manages a more conservative hedging policy and reviews its customer base nightly to make certain its pricing commitments are appropriately hedged on a daily basis. Hedging is an automatic program rather than discretionary which adds a significant amount of control and helps to minimize risk. In a rising commodity price environment, collateral postings to cover margin calls on swap agreements are a credit concern. However, the company has partially mitigated this risk by entering into a reverse hedge on its physical inventory position where the collateral requirements have in inverse relationship to that of the swaps. While this transaction does not eliminate the overall risk to liquidity from the hedging program is does mitigate it to some extent. At the end of fiscal 2004 the company announced the suspension of its distribution payments. As part of its recapitalization, the company was relieved of its distribution commitments through October 2008 which has led to the improved liquidity and substantial cash position. Fitch believes Star Gas will generate sufficient operating cash flow to cover its distribution requirement even in a moderate stress environment. Should cash flows prove insufficient in the short term, Star Gas' relatively strong cash balances would allow the company to mange through a temporary downturn in the heating oil market. However, if stress conditions continued it would affect the company's ability to maintain distributions over the long term. With Petro's bank facilities maturing in December 2009, Star Gas is faced with refinancing risk. While it is too early to assess whether refinancing the facility would be an issue, it is an event risk that will be closely monitored. Fitch believes the company maintains a good relationship with its bank group and the parties have been able to work through difficult situations in the past including expanding the in-season upper limits of its working capital facility by an additional $50 million in December 2007. The rating for the senior unsecured notes reflects its subordinated position to the Petro credit facility. Fitch's Recovery Rating for the outstanding notes, a relative indicator of creditor recovery on a given obligation in the event of a default, is unchanged at 'RR3'. 'RR3' indicates an estimated recovery level of between 50% and 70% in event of a default. STEVE & BARRY'S: Court Approves Sale to BHY S&B for $163 Million ---------------------------------------------------------------- The United States Bankruptcy Court for the Southern District of New York approved the sale of substantially all assets of Steve and Barry's LLC and its debtor-affiliates to BHY S&B Holdings LLC, a newly formed affiliate of investment firms Bay Harbour Management and York Capital. Under the terms of the $163 million purchase agreement, the majority of the Debtors' 276 stores will continue to serve customers including individuals who maintain licensing relationship with the company. BHY S&B Holdings has yet to decide which of the Debtors' stores will close, although an announcement is anticipated in the next week. In addition to the acquisition, BHY S&B Holdings will acquire all the Debtors' intellectual property rights -- including its celebrity and brand licenses, and the company's key facilities, including its Port Washington, New York headquarters, Columbus, Ohio distribution center, and certain overseas offices. Debtors File Proposed Sale Order and Amended Purchase Agreement Prior to the auction, Steve & Barry's disclosed that the lead bidder for the company was BH S&B Holdings, a joint venture with Gordon Brothers Retail Partners LLC and Hilco, which had offered $163 million. Subsequently, the Debtors filed with the Court: i) an amended Asset Purchase Agreement, dated August 21, 2008, among Debtor S&B Industries, Inc., BH S&B Holdings LLC, Hilco Merchant Resources LLC, and Gordon Brothers Retail Partners LLC and ii) a proposed sale order. According to the Amended Purchase Agreement, the purchase price is premised on the aggregate cost value of the merchandise being not less than $183,700,000. In the event that the aggregate Cost Value of the Merchandise is less than or greater than $183,700,000, the Purchase Price will be increased or decreased. The Amended Purchase Agreement may be terminated before the Closing, if, among other things, Closing has not occurred by the close of business on August 25, 2008. If Closing has not occurred on or before the August 25, 2008 termination date due to a material breach of any representations, warranties, covenants or agreements contained in the Amended Purchase Agreement by S&B Industries or BH S&B Holdings, then the breaching party may not terminate the agreement. A full-text copy of the Amended Purchase Agreement is available for free at http://ResearchArchives.com/t/s?313d A full-text copy of the proposed sale order is available for free at http://ResearchArchives.com/t/s?313e About Steve & Barry Headquartered in Port Washington, New York, Steve and Barry LLC -- http://www.steveandbarrys.com/-- is a national casual apparel retailer that offers high quality merchandise at low prices for men, women and children. Founded in 1985, the company operates 276 anchor and junior anchor shopping center and mall-based locations throughout the U.S. At STEVE & BARRY'S (R) stores, shoppers will find brands they can't find anywhere else, including the BITTEN(TM) collection, the first-ever apparel line created by actress and global fashion icon Sarah Jessica Parker, and the STARBURY(TM) collection of athletic and lifestyle apparel and sneakers created with NBA (R) star Stephon Marbury. Steve & Barry's, LLC, and 63 affiliates filed separate voluntary petitions under Chapter 11 on July 9, 2008 (Bankr. S.D. N.Y. Lead Case No. 08-12579). Lori R. Fife, Esq., and Shai Waisman, Esq., at Weil, Gotshal & Manges, LLP, represent the Debtors in their restructuring efforts. Diana G. Adams, United States Trustee for Region 2, has appointed seven members to the Official Committee of Unsecured Creditors in the Debtors' Chapter 11 cases. When the Debtors filed for bankruptcy, it listed $693,492,000 in total assets and $638,086,000 in total debts. SUMMIT CBO: S&P Withdraws 'B+' Rating on Class A Securities ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B+' rating on the class A notes issued by Summit CBO I Ltd., an arbitrage corporate high-yield collateralized bond obligation transaction managed by Summit Investment Partners. The rating withdrawal follows the complete paydown of the class A notes on the May 23, 2008, payment date. RATING WITHDRAWN Summit CBO I Ltd. Rating Balance (mil. $) Class To From Current Original ----- -- ---- ------- -------- A NR B+ 0.000 232.000 NR -- Not rated. SUN-TIMES MEDIA: Inks Master Service Agreement with STC and CPI --------------------------------------------------------------- The Sun-Times Company, an indirect, wholly-owned subsidiary and the principal operating unit of the Registrant, Sun-Times Media Group, Inc., and Classifieds Plus, Inc. entered into an Addendum to the Master Services Agreement between STC and CPI on August 11, 2008. The Master Services Agreement, which was entered into in February 2008, provides that CPI will provide in-bound classified ad taking services for STC's Fox Valley Publications subsidiary on a pilot basis and that, if the pilot program is successful, CPI will provide the Services on an exclusive basis for all of STC's publications, including the Chicago Sun-Times, Pioneer Press Publications, Post-Tribune, and Midwest Suburban Publishing, which includes the SouthtownStar, for all of such publications' transient and commercial customers in most business categories, but also excluding web-generated advertisements, walk-ins and free advertisements. The Addendum, among other things, acknowledges that the pilot program was successful and provides that the Services will be provided by CPI to all of STC's publications in accordance with an agreed project timeline beginning August 11, 2008. The Master Services Agreement, as amended by the Addendum, is referred to herein as the "Agreement." In exchange for the Services provided by CPI, STC will pay CPI a fee equal to a certain percentage of net sales for all advertisements taken by CPI and published by STC, which percentage may increase if the aggregate amount of such net sales for certain periods during the term of the Agreement falls below certain threshold amounts. The fee is also subject to downward adjustment if CPI fails to meet certain performance targets. The term of the Agreement expires on August 11, 2011. Headquartered in Chicago, Sun-Times Media Group Inc. (NYSE: SVN) - - http://www.thesuntimesgroup.com/-- is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and Suntimes.com as well as newspapers and Web sites serving more than 200 communities throughout the Chicago area. Based in Toronto, Ontario, Hollinger Inc. (TSX: HLG.C)(TSX: HLG.PR.B) -- http://www.hollingerinc.com/-- which owns approximately 70.1% voting and 19.7% equity interest in Sun-Times Media Group Inc., along with two affiliates, 4322525 Canada Inc. and Sugra Limited, filed separate Chapter 15 petitions on Aug. 1, 2007 (Bankr. D. Del. Case Nos. 07-11029 through 07-11031). Hollinger also initiated Court-supervised restructuring under the Companies' Creditors Arrangement Act (Canada) on the same day. As reported in the Troubled Company Reporter on April 3, 2008, Sun-Times Media Group Inc.'s consolidated balance sheet at Dec. 31, 2007, showed $791.6 million in total assets and $866.6 million in total liabilities, resulting in a total stockholders' deficit of $75.0 million. SUNTRUST ALT: Moody's Junks Three Class Certificates' Ratings ------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 43 tranches from 3 Alt-A transactions backed by SunTrust originated mortgage loans. Nine tranches were placed on review for possible further downgrade. The collateral backing these transactions consists primarily of first-lien, fixed-rate, Alt-A mortgage loans. Complete rating actions are: Issuer: Bear Stearns Asset Backed Securities I Trust 2006-ST1 -- Cl. A-1, Downgraded to B1 from Aaa -- Cl. A-2, Downgraded to B1 from Aaa -- Cl. M-1, Downgraded to Ca from B3 -- Cl. M-2, Downgraded to C from B3 -- Cl. M-3, Downgraded to C from B3 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. B-1, Downgraded to C from Ca -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca -- Cl. B-4, Downgraded to C from Ca Issuer: SunTrust Alternative Loan Trust 2006-1F -- Cl. I-A-1, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. I-A-2, Downgraded to B2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. I-A-3, Downgraded to B2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. I-A-4, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. III-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. III-S, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. PO, Downgraded to B3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. X, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-2, Downgraded to C from Ca -- Cl. B-3, Downgraded to C from Ca Issuer: SunTrust Alternative Loan Trust, Series 2005-1F -- Cl. 1-A-1, Downgraded to Aa1 from Aaa -- Cl. 1-A-2, Downgraded to Aa1 from Aaa -- Cl. 1-A-3, Downgraded to Aa1 from Aaa -- Cl. 1-A-4, Downgraded to Ba2 from Aaa -- Cl. 1-A-5, Downgraded to Ba1 from Aaa -- Cl. 1-A-6, Downgraded to Ba2 from Aaa -- Cl. 1-A-7, Downgraded to Ba2 from Aaa -- Cl. 1-A-8, Downgraded to Ba1 from Aaa -- Cl. 1-IO, Downgraded to Aa1 from Aaa -- Cl. 2-A-1, Downgraded to Baa3 from Aaa -- Cl. 2-A-2, Downgraded to Ba1 from Aaa -- Cl. 2-A-3, Downgraded to Aa1 from Aaa -- Cl. 2-A-4, Downgraded to Ba2 from Aaa -- Cl. 2-A-5, Downgraded to Ba1 from Aaa -- Cl. 2-A-6, Downgraded to Ba1 from Aaa -- Cl. 2-A-7, Downgraded to Ba1 from Aaa -- Cl. 2-A-8, Downgraded to Ba1 from Aaa -- Cl. 3-A-1, Downgraded to Ba1 from Aaa -- Cl. 4-A-1, Downgraded to Ba1 from Aaa -- Cl. CB-IO, Downgraded to Aa1 from Aaa -- Cl. X-PO, Downgraded to Ba1 from Aaa Ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions described below are a result of Moody's on-going review process. SYNTAX-BRILLIAN: Officials Sued by Taiwan Company Over SEC Filings ------------------------------------------------------------------ A Taiwan-based manufacturing company with an equity interest in bankrupt TV manufacturer Syntax-Brillian Corp. is suing senior executives alleging they signed off on false financial reports before the company collapsed, Bankruptcy Law360 reports. Based in Tempe, Arizona, Syntax-Brillian Corporation (Nasdaq:BRLC) -- www.syntaxbrillian.com -- manufactures and markets LCD HDTVs, digital cameras, and consumer electronics products include Olevia(TM) brand high-definition widescreen LCD televisions and Vivitar brand digital still and video cameras. Syntax-Brillian is the sole shareholder of California-based Vivitar Corporation. The company and two of its affiliates -- Syntax-Brillian SPE, Inc., and Syntax Groups Corp. -- filed for Chapter 11 protection on July 8, 2008 (Bankr. D. Delaware Lead Case No.08-11409 through 08-11409. Dennis A. Meloro, Esq., and Victoria Watson Counihan, Esq., at Greenberg Traurig LLP, represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 has yet to appoint creditors to serve on an Official Committee of Unsecured Creditors. When the Debtors filed for protection against their creditors, they listed total assets of $175,714,000 and total debts of $259,389,000. TEEVEE TOONS: Two Units Refute Committee's Case Consolidation Plea ------------------------------------------------------------------ TVT Music Inc. and Wax Trax Records Inc., two non-bankrupt affiliates of TeeVee Toons Inc., told the U.S. Bankruptcy Court, Southern District New York (Manhattan) that it is wrong to consolidate the two subsidiaries into the TeeVee Toons' chapter 11 case, William Rochelle of Bloomberg says. As reported by the Troubled Company Reporter on Aug. 15, 2008, the Official Committee of Unsecured Creditors of TEEVEE Toons asked the Court consolidate TEEVEE Toons' two non-bankrupt affiliates -- TVT Music Inc. and Wax Trax Records Inc. The Committee argued that the Debtor and the affiliates operate as one unit with funds flowed between them and their employees are paid through the Debtor's payroll account. TVT Music and Wax Trax reasoned that they have their "own separate and very distinct expertise, contracts and creditors," Mr. Rochelle quotes a court document as stating. The two companies also said that under certain laws, creditors of non-bankrupt entities must be notified of any consolidation and how it would affect their recovery, the report continues. The Court is scheduled to hear the consolidation issue on Aug. 26, 2008. About TEEVEE Toons Headquartered in New York City, TEEVEE Toons Inc. dba T.V.T. Records -- http://www.tvtrecords.com/-- is an American record label. The Debtor filed for Chapter 11 petition on Feb. 19, 2008 (Bankr. S.D.N.Y. Case No.: 08-10562). The Official Committee of Unsecured Creditors has selected Sonnenschein Nath & Rosenthal LLP as its counsel. Alec P. Ostrow, Esq. and Constantine Pourakis, Esq, at Stevens & Lee, P.C. represent the Debtor in its restructuring efforts. The U.S. Trustee for Region 2 appointed five creditors to serve on an Official Committee of Unsecured Creditors. Sonnenschein Nath & Rosenthal LLP is counsel to the Committee. When the Debtor filed for protection from its creditors, it listed estimated assets between $10 million and $50 million and debts between $10 million and $50 million. TENSAR CORP: S&P Puts 'B' Credit Rating On Watch Negative --------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Tensar Corp., including its 'B' corporate credit rating, on CreditWatch with negative implications. "The CreditWatch listing reflects our increasing concerns about the impact that weakening commercial construction activity and future infrastructure spending uncertainty will have on the company's end-market demand and operating performance over the next several quarters," said Standard & Poor's credit analyst Thomas Nadramia. As a result, Tensar's credit measures may not improve to levels necessary to comply with more restrictive covenants under its existing bank facility credit agreement at Dec. 31, 2008, which require total leverage to be less than 4.75x and senior leverage less than 4.0x. Access to the company's $40 million revolving credit facility, which had about $8.0 million outstanding on June 30, 2008, could become constrained. In resolving the CreditWatch listing, S&P will discuss with management its plans to address potential near- to intermediate- term liquidity constraints caused by the covenant changes given the difficult operating and credit market conditions that are likely to continue during this period. TIAA CMBS: Fitch Affirms B Rating for $7.3MM Class N Certificates ------------------------------------------------------------------ Fitch Ratings upgrades TIAA CMBS I Trust's commercial mortgage pass-through certificates, series 2001-C1, as: -- $33 million class H to 'AAA' from 'AA+'; -- $14.7 million class J to 'AA' from 'A+'; -- $11 million class K to 'A' from 'BBB+'; -- $14.7 million class L to 'BBB-' from 'BB'. In addition, Fitch affirms these classes: -- $313.2 million class A-4 at 'AAA'; -- Interest only class X at 'AAA'; -- $58.6 million class B at 'AAA'; -- $51.3 million class C at 'AAA'; -- $22 million class D at 'AAA'; -- $14.7 million class E at 'AAA'; -- $18.3 million class F at 'AAA'. -- $14.7 million class G at 'AAA'; -- $7.3 million class M at 'B+'; -- $7.3 million class N at 'B'. Fitch does not rate the $17.5 million class O. Classes A-1, A2, A3 and A-5 have been paid in full. The upgrades reflect increased credit enhancement levels due to the payoff of seventeen loans and scheduled amortization since Fitch's last rating action. As of the July 2008 distribution date, the pool's aggregate certificate balance has decreased 59%, to $598 million from $1.465 billion at issuance. Of the original 252 loans, 129 remain outstanding in the pool. Twenty-nine loans (40.8%) are defeased. There are no delinquent or specially serviced loans. The weighted average coupon of the remaining loans is 7.3%. Four non-defeased loans in the pool (3.5%) are scheduled to mature in 2008. Fitch has identified one loan as a Fitch loan of concern due to declining occupancy. The loan is secured by a 93,782 square foot industrial property built in 1989 located in Tampa, Florida. Servicer reported occupancy as of June 16, 2008 decreased to 63% from 89% at issuance, as several tenants vacated after their lease expirations. First quarter 2008 DSCR was 1.14 times (x), compared to 1.34x at issuance. The loan has an interest rate of 7.12% and is scheduled to mature on Oct. 1, 2008. TCW SELECT: S&P Affirms BB Ratings on 3 Classes of Securities ------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class B and C notes issued by TCW Select Loan Fund Ltd., an arbitrage high-yield collateralized loan obligation (CLO) transaction, and removed them from CreditWatch, where they were placed with positive implications on Aug. 5, 2008. At the same time, S&P affirmed its ratings on the class A-1, A-2, D-1, D-2, and composite notes based on the level of credit enhancement available to support the notes. The raised ratings reflect the significant paydown of the class A- 1 notes and the resulting increase in the level of credit enhancement available to support the remaining balance of the notes. Since the transaction was issued in May 2001, the class A-1 notes have paid down approximately $313.267 million. According to the most recent trustee report, dated July 31, 2008, the class B and C overcollateralization ratios were 141.58% and 126.87%, respectively, compared with the required minimum values of 104.9% and 104.2%. RATINGS RAISED AND REMOVED FROM CREDITWATCH POSITIVE TCW Select Loan Fund Ltd. Rating Class To From Balance (mil. $) ----- -- ---- ---------------- B AA+ AA-/Watch Pos 25.000 C A BBB/Watch Pos 15.000 RATINGS AFFIRMED TCW Select Loan Fund Ltd. Class Rating Balance (mil. $) ----- ------ ---------------- A-1 AAA 42.373 A-2 AAA 62.000 D-1 BB- 11.000 D-2 BB- 5.000 Composite BB- 5.000 Balances related to the July 10, 2008, payment date. TRANSACTION INFORMATION Issuer: TCW Select Loan Fund Ltd. Co-issuer: TCW Select Loan Fund Inc. Collateral manager: TCW Advisors Inc. Transaction type: Cash flow arbitrage high-yield CLO Indenture trustee: JPMorgan Chase Bank N.A. TORRENT ENERGY: Posts $1,076,706 Net Loss in Quarter Ended June 30 ------------------------------------------------------------------ Torrent Energy Corp. reported a net loss of $1,076,706 for the first quarter ended June 30, 2008, compared with a net loss of $3,733,955 for the three months ended June 30, 2007. The company is an exploration stage company and has not yet generated any revenues from operations. Total operating expenses were $317,118 for the three months ended June 30, 2008, compared to $1,155,142 in the same period one year earlier. Interest income decreased from $58,682 for the three months ended June 30, 2007, to $359 for the three months ended June 30, 2008. The decrease in interest revenue of $58,323 was due to the company's draw-down of excess cash holdings to fund operations and project expenditures. For the three months ended June 30, 2007, the company recorded a non-recurring loss on conversion of Series E Preferred Stock of $2,609,029, reflecting the difference between the $0.50 per common share conversion price and the market price of the common shares on the Series E Stock conversion dates. There was not a similar conversion for the current quarter. Interest expense increased from $28,466 for the three months ended June 30, 2007, to $181,798 for the three months ended June 30, 2008. The increase in interest expense of $153,332 was due primarily to the reclassification of dividend interest accrued related to the company Series E Preferred Stock, which was reclassified from an equity instrument to a financial liability in accordance with Statement of Financial Accounting Standard No. 150, "Accounting for Certain Instruments with Characteristics of Both Liabilities and Equity." The company incurred $563,696 in reorganization costs for the three months ended June 30, 2008, associated with its Chapter 11 bankruptcy case. Cash on hand was $55,455 as of June 30, 2008, compared to $120,388 at March 31, 2008. At June 30, 2008, the company had liabilities subject to compromise of $23,947,059 including $22,808,839 of outstanding Series E Stock and related accrued dividends. Continuation of the company's current operations is contingent upon completing the Plan of Reorganization and obtaining additional funding. During the three months ended June 30, 2008, the company cash of $95,041 on its Coos Bay and Chehalis Basin projects compared to $2,519,452 during the three months ended June 30, 2007. Update on Chapter 11 Filings On June 9, 2008, the U.S. Bankrupty Court for the District of Oregon entered an order fixing the last day to file proofs of claim against the Debtors as Aug. 15, 2008. On June 16, 2008, the Debtors filed their Joint Plan of Reorganization and the Disclosure Statement. A hearing on the adequacy of the Disclosure Statement is scheduled for Sept. 18, 2008, at 9:30 a.m. at the Bankruptcy Court in Portland, Oregon. In connection with the Chapter 11 Cases, on June 6, 2008, the company entered into a senior secured super-priority debtor-in- possession credit and guaranty agreement among the company and its subsidiaries, as Guarantors, and YA Global Investments, L.P., as lender. The Court entered an order approving the DIP Credit Agreement on July 11, 2008. The Plan provides for the reorganization of the Debtors and the payment in full of each allowed claim against the Debtors. The Plan also includes a rights offering, under which current shareholders of the company will have the opportunity to purchase additional new equity of the company, subject to Bankruptcy Court approval and other conditions. The treatment of the two impaired classes of interests (Series E Preferred Interests and Common Shareholder Interests) will depend on the outcome of the Rights Offering. Balance Sheet At June 30, 2008, the company's consolidated balance sheet showed $35,348,556 in total assets, $24,802,317 in total liabilities, and $10,546,239 in total stockholders' equity. The company's consolidated balance sheet at June 30, 2008, also showed strained liquidity with $143,277 in total current assets available to pay $777,338 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2008, are available for free at http://researcharchives.com/t/s?3113 Going Concern Doubt Peterson Sullivan PLLC, in Seattle, Washington, expressed substantial doubt about Torrent Energy Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2008. The auditing firm pointed to the company's recurring losses from operations since inception, substantial accumulated deficit, and the company's recent filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. About Torrent Energy Headquartered in Portland, Oregon, Torrent Energy Corporation -- http://www.torrentenergy.com/-- is an exploration stage company engaged in the exploration for coalbed methane in the Coos Bay region of Oregon and in the Chehalis Basin region of Washington State. The company and two of its affiliates filed for Chapter 11 protection on June 2, 2008 (Bankr. D. Ore. Case Nos. 08-32638 through 08-32640). Jeanette L. Thomas, Esq., at Perkins Coie LLP, represents the Debtors in their restructuring efforts. TOUSA INC: Citicorp Wants Akin Gump and Robbins Tasks Coordinated ----------------------------------------------------------------- Citicorp North America Inc., as administrative agent under a first priority Revolving Credit Agreement dated March 6, 2006, and a First Lien Term Loan Credit Agreement dated as of July 31, 2007, asks the U.S. Bankruptcy Court for the Southern District of Florida to ensure that Akin Gump Strauss Hauer & Feld LLP and Robbins Russell will coordinate their efforts to avoid any unnecessary duplication or overlap of work. Citicorp says it does not object to the application of the Official Committee of Unsecured Creditors in TOUSA Inc. and its debtor-affiliates' Chapter 11 cases to retain Robbins Russell Englert Orseck Untereiner & Sauber LLP, as its special litigation counsel, nunc pro tunc to June 19, 2008. The Court approved the Committee's application to retain Robbins Russel as its special litigation counsel as of June 19, 2008. However, Citicorp notes that the Committee does not (i) make any reference whether Akin Gump and Robbins Russell will coordinate with each other, or (ii) clarify any potential duplication or overlap of work between the two firms. Citicorp asserts it is in the best interests of the Debtors and their estates to ensure the efficient prosecution of the claims proceeds. About TOUSA Inc. 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., at Kirkland & Ellis LLP and Paul Steven Singerman, Esq., at 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 the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. The Official Committee of Unsecured Creditors hired Patricia A. Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff & Sitterson, P.A., as its local counsel. 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. Its consolidated balance sheet as of Feb. 29, 2008 showed total assets of $1,961,669,000 and total liabilities of $2,278,106,000. TOUSA's Exclusive Plan Filing Period expires Oct. 25, 2008. (TOUSA Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TOUSA INC: Has Until October 25 to Remove Pending Civil Actions --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida extended the time by which TOUSA Inc. and its debtor-affiliates must remove pending civil actions they are a party to as set forth in Rule 9027(a) of the Federal Rules of Bankruptcy Procedure, through and including Oct. 25, 2008. The Debtors' deadline to remove civil actions expired on July 27, 2008. As reported in the Troubled Company Reporter on July 21, 2008, the Debtors related that the extension will allow them sufficient time to give adequate consideration to whether removal of any of the civil actions is necessary. Paul Steven Singerman, Esq., at Berger Singerman P.A., in Miami, Florida, assured the Court that the rights of any party to the civil actions will not be prejudiced by the requested extension. Moreover, if the Debtors ultimately seek to remove any action pursuant to Bankruptcy Rule 9027, any party to the litigation can seek to have the action remanded pursuant to Section 1452(b) of the Judiciary and Judicial Procedures. About TOUSA Inc. 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., at Kirkland & Ellis LLP and Paul Steven Singerman, Esq., at 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 the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. The Official Committee of Unsecured Creditors hired Patricia A. Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff & Sitterson, P.A., as its local counsel. 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. Its consolidated balance sheet as of Feb. 29, 2008 showed total assets of $1,961,669,000 and total liabilities of $2,278,106,000. TOUSA's Exclusive Plan Filing Period expires Oct. 25, 2008. (TOUSA Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TOUSA INC: Wants to Amend Lot Purchase, Sale Deal with Frey Living ------------------------------------------------------------------ TOUSA Inc. and its debtor-affiliates seek permission from the U.S. Bankruptcy Court for the Southern District of Florida to enter into a first amendment of a lot purchase and sale agreement dated June 17, 2008, between TOUSA Homes Inc., and Philip Frey, Jr., as trustee for the Frey Living Trust. The Debtors relate that they entered into a Sale Agreement in June 2008 for the sale of 20 of their residential lots located at Meadow Run in Martin County, Florida, to Mr. Frey for $3,000,000. Mr. Frey was to provide a $50,000 deposit currently held in escrow. The parties also agreed that the Debtors will pay $100,000 to an agreed-upon broker. Accordingly, the Debtors provided a notice of the proposed sale on June 19, 2008. The Debtors note that no one objected to the Sale Notice within the time period set forth in the Court- approved Non-Core Asset Procedures. They inform the Court they were not aware at the time they served the Sale Notice that any other party asserted a lien or interest with respect to the Property to be sold. Contract with Meadow Run at Palm City TOUSA Homes states it is currently party to a termination agreement with Meadow Run at Palm City, LLC, also known as Zuckerman. Under the Agreement, the parties agree to terminate their previous pact for the sale of certain real property located in Martin County, Florida and site work to be done by TOUSA Homes on the Property. Under the Zuckerman Contract, TOUSA Homes agreed that, so long as Zuckerman owns any lot within the Martin County Property, TOUSA Homes will not sell any lot in the Property for less than $325,000. As of July 21, 2008, the Debtors believe Zuckerman owns four lots in the Meadow Run development. The Debtors say they removed the Zuckerman Contract from their list of rejected leases and contracts and directly served Zuckerman with the Sale Notice. Zuckerman filed a written objection on July 16, 2008, asserting that: * it did not receive notice of the Proposed Sale; * the Zuckerman Contract is not executory; and * the Sale Provision is an "interest" in the Property, which the Debtors may not sell, free and clear of liens and encumbrances. The Debtors and Zuckerman have been unable to achieve a consensual resolution of the Sale Objection, according to Paul Steven Singerman, Esq., at Berger Singerman, P.A., in Miami, Florida. Amended Frey Contract The Debtors propose an amendment to the Frey Agreement, noting the sale of the Lots to Philip Frey, free and clear of all liens, claims and encumbrances, including any interest asserted by Zuckerman. Mr. Singerman contends the Debtors may sell the Property, free and clear of interests, for these reasons: 1. Florida Law permits the Debtors to sell the Property, notwithstanding the sale provision in the Zuckerman Contract, since: -- The Sale Provision is a personal covenant under Florida Law, which binds only the covenanter personally, and not a real covenant, which binds the heirs and assigns of the covenanter; -- Breach of the personal covenant creates a prepetition claim; and -- The Sale Provision does not create an interest in the Property Under Florida Law, even if it is a real covenant; and 2. Zuckerman's interest in the Property is subject to a bona fide dispute, because the Sale Provision is an unenforceable restraint on alienation of property and on trade and commerce. Mr. Singerman argues that the Sale Provision in the Zuckerman Contract is a per se violation of the Florida Anti-Trust Laws, since it is a horizontal agreement between similarly situated owners of residential lots held for the purpose of selling to buyers who seek to build on those lots. Moreover, he asserts, the Sale Provision is the most basic form of price fixing, because it limits the price at which TOUSA Homes may sell the Property. Thus, by this motion, the Debtors seek the Court's authority to sell the Meadow Run Property, free and clear of Zuckerman's interest, if any. About TOUSA Inc. 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., at Kirkland & Ellis LLP and Paul Steven Singerman, Esq., at 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 the Debtors' independent auditor and tax services provider. Kurtzman Carson Consultants LLC acts as the Debtors' Notice, Claims & Balloting Agent. The Official Committee of Unsecured Creditors hired Patricia A. Redmond, Esq., and the law firm Stearns Weaver Weissler Alhadeff & Sitterson, P.A., as its local counsel. 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. Its consolidated balance sheet as of Feb. 29, 2008 showed total assets of $1,961,669,000 and total liabilities of $2,278,106,000. TOUSA's Exclusive Plan Filing Period expires Oct. 25, 2008. (TOUSA Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TRIANT HOLDINGS: Inks Non-Binding Deal for FDC Unit's Assets Sale ----------------------------------------------------------------- Triant Holdings Inc. entered into a non-binding agreement to negotiate the sale of the assets of its Fault Detection & Classification business. The prospective sale is subject to a number of conditions including the negotiation of a definitive agreement acceptable to both parties, the satisfactory completion of due diligence, and board, shareholder and regulatory approvals as required. Triant's board of directors has appointed a special committee to oversee these negotiations. There is no assurance that such negotiations will result in a transaction. The company stated in its financial statements for period ended Dec. 31, 2007, that certain conditions and events may cast substantial doubt on the company's ability to continue as a going concern. The continuation of the company as a going concern is dependent upon the attainment of profitable operations and upon the company's continuing ability to raise sufficient additional financing as required. While management anticipates revenue from its products and related services, there is no assurance that the company will earn sufficient revenue to maintain its future operations. Consequently, the company may have to raise additional funds in the future in order to maintain operations. There is no assurance that sufficient additional financing will be available, if at all, on terms favorable to the company. If such funds are unavailable or are not available on acceptable terms, the company may be unable to maintain its future operations, take advantage of opportunities, develop new products or otherwise respond to competitive pressures. As at June 30, 2008, Triant had a C$1.0 million balance for cash, cash equivalents, restricted cash and accounts receivable compared to a C$1.7 million balance as at Dec. 31, 2007. About Triant Holdings Inc. Triant Holdings Inc. (TSX: TNT) -- http://www.triant.com/--is into equipment health monitoring, advanced fault detection and sophisticated data analysis technology. The company's industry focus is the semiconductor industry where it provides innovative Advanced Process Control software solutions that enable its customers to improve their productivity and lower their manufacturing costs. TRINITY HOSPITAL: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Trinity Hospital, LLC, Trinity Hospital, LLC dba Trinity Hospital 5001 East Main Street P.O. Box 489 Erin, TN 37061 Bankruptcy Case No.: 08-07349 Related Information: A. Ronald Turner, president, filed the petition on the Debtor's behalf. Chapter 11 Petition Date: August 19, 2008 Court: Middle District of Tennessee (Nashville) Judge: Marian F. Harrison Debtor's Counsel: G. Rhea Bucy, Esq. (rbucy@gsrm.com) Linda W. Knight, Esq. (lknight@gsrm.com) Thomas H. Forrester, Esq. (tforrester@gsrm.com) Gullett, Sanford, Robinson, Martin PO Box 198888 Nashville, TN 37219-8888 Tel: (615) 244-4994 Fax: (615) 256-6339 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A list of the Debtor's largest unsecured creditors is available for free at http://bankrupt.com/misc/TNmb08-07349.pdf TRONOX INC: Raises Bankruptcy Sceptre, Rothschild on Board ---------------------------------------------------------- Tronox Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that it is evaluating all strategic options for the company, including mitigation of environmental liabilities and capital restructuring. Tronox said it has experienced significant losses for the year ended December 31, 2007, and the six months ended June 30, 2008, and has generated negative cash flows from operations in the current year. Tronox reported $403.8 million in net sales, on a consolidated basis for the three months ended -- and $752.9 million in net sales, on a consolidated basis, for the six months -- June 30, 2008. The company incurred a $34.4 million net loss for the recent quarter and $34.6 million for the half year. The company has $1.7 billion in total assets, including $703.5 million in current assets, as at June 30. The company has $937.8 million in current debts and $336.9 million in total noncurrent debts. Amendment to 2005 Credit Facility The company's wholly owned subsidiary, Tronox Worldwide LLC, is a party to a November 2005 senior secured credit facility. This facility consists of a $200 million six-year term loan facility and a five-year multicurrency revolving credit facility of $250 million. In February 2008, Tronox requested and obtained approval for an amendment to the 2008 and 2009 financial covenants. On June 27, 2008, the company received a waiver for a potential default on the Consolidated Total Leverage Ratio -- as defined in the agreement -- for the fiscal quarter ended June 30, 2008. In July 2008, the company obtained approval for an amendment to the Consolidated Total Leverage ratio for the second, third and fourth quarters of 2008. The limitations on capital expenditures have not been modified and are $130 million in 2008 and $100 million in 2009 and thereafter. Tronox incurred amendment fees of approximately $2.5 million for each of the amendments in February 2008 and July 2008. These costs will be amortized over the remaining life of the debt. The margin applicable to LIBOR borrowings at June 30, 2008 was 350 basis points. Because the companyâ€™s Consolidated Quarterly Leverage Ratio (as defined) at June 30, 2008, exceeded 4.25x, the margin increased by 50 basis points for the third quarter of 2008 to 400 basis points effective July 1, 2008. Due to a downgrade on the company's debt rating on July 31, 2008, the margin increased by an additional 50 basis points on that date and is currently 450 basis points for the remainder of the third quarter of 2008. The company was in compliance with its financial covenants at June 30, 2008, following the waiver and subsequent amendment. Under these circumstances, accounting guidance requires the company to demonstrate that it is not probable that the company will be in default on its financial covenants in the next 12 months for the company to classify its debt as noncurrent obligations. Due to the continued uncertainty of the economic environment, the company is unable to demonstrate such compliance with reasonable certainty over the next 12 months and hence the outstanding balances on the company's credit agreement have now been classified as current obligations. The company's senior notes contain cross default provisions such that if a default on the credit agreement were to occur and remain uncured, this would trigger a default on the senior notes as well. As a result, the entire $350.0 million balance on the senior notes has been classified as a current obligation as well. As of June 30, 2008, Tronox had total debt of $540.1 million -- including $69.0 million of borrowings on our revolving credit facility -- cash and cash equivalents of $23.3 million and outstanding letters of credit issued under the credit facility in the amount of $69.7 million resulting in unused capacity under the revolving credit facility of $111.3 million. As of August 5, 2008, the company had total debt of $544.9 million which included $84.0 million of borrowings on its revolving credit facility. Amendment to Receivables Agreement Also on July 29, 2008, Tronox and its subsidiary Tronox Worldwide LLC entered into a First Amendment to and Waiver of Receivables Sale Agreement to a Receivables Sale Agreement dated as of September 26, 2007. Amendment No. 1, among other things, (i) eliminated the requirement that all purchases and deposits from collections be made out of, or in the case of collections, be made into, the cash collateral account; (ii) eliminated Tronox Funding LLC's ability to extend the scheduled maturity date and deleted certain definitions; (iii) amended the term "aggregate Commitment" to reduce $102,000,000 to $76,500,000; and (iv) amended the term "Purchase Limit" to reduce it from $100,000,000 to $75,000,000. As consideration for Amendment No. 1, the Company paid a fee of $286,825. Amsterdam Funding Corporation and ABN AMRO Bank N.V., as agent for the Purchasers, and as a committed purchaser, are the counterparties to the agreement. Work Force Reduction On May 22, 2008, the company announced an involuntary work force reduction program as part of its ongoing efforts to reduce costs. As a result of the program, the company's U.S. work force was reduced by 31 employees. An additional 38 positions that were vacant prior to the work force reduction will not be filled. There were no costs associated with the elimination of vacant positions. The program was substantially completed as of June 30, 2008. Tronox Explores Alternatives "If we were to continue to generate losses and negative cash flows, this could raise substantial doubt about our ability to continue as a going concern and we may need to seek alternative financing arrangements. Should this occur, debt or equity financing may not be available, when needed, on terms favorable to us or even available to us at all," the company said. "Our ability to continue as a going concern will depend upon our ability to generate positive results and cash flows, restructure our capital structure, including, among other alternatives, refinancing our outstanding indebtedness and mitigating our environmental liabilities. Failure to address these issues could result in, among other things, the depletion of available funds and our not being able to pay our obligations when they become due, as well as possible defaults under our debt obligations." ... Rothschild on Board Tronox has retained the investment banking firm Rothschild Inc. to further assist the company in evaluating strategic options for the business. "This has been the most challenging business environment our company has faced and while we continue to make strides against difficult conditions, there is no assurance that we will be successful in pursuing alternatives and options, or that the current price increases we are implementing will offset continuing cost increases and other factors that the company is unable to predict and that are beyond our control. Even if we are successful with one or more strategic alternatives, we may not be able to fully address our many ongoing challenges and to maintain financial viability. If we continue to experience negative impacts on our operations, the company may need to seek relief under Chapter 11 of the United States Bankruptcy Code to allow the company to, among other things, restructure its capital structure and reorganize its business, including its environmental legacy issues," the company says. Tronix says the remainder of 2008 will continue to be challenging with respect to increasing manufacturing costs. The ongoing escalation of energy costs coupled with broad inflationary pressures are expected to continue to negatively impact company margins. "To mitigate this pressure, we are aggressively pursuing sales price increases, fixed cost reductions and productivity improvements. We have announced and are in the process of implementing price increases. These increases are intended to help offset the significant increases in freight, energy and other input costs that the [titanium dioxide pigment] industry has absorbed over the last two years," the company relates. "However, there can be no assurance that the current price increases will offset the continuing cost increases that the company is unable to predict and that depend on numerous factors beyond its control." About Tronox Incorporated Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) -- http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. At March 31, 2008, the company's consolidated balance sheet showed $1.74 billion in total assets, $1.29 billion in total liabilities, and $451.9 million in stockholders' equity. TRONOX INC: Non-Compliance Cues NYSE Delisting Notice ----------------------------------------------------- Tronox Incorporated was notified by the New York Stock Exchange on August 11, 2008, that it is not in compliance with the NYSE's continued listing standards. The NYSE's notice indicated that the Company's average market capitalization over the 30 trading-day period preceding August 8, 2008, was $67.4 million, which was below the NYSE's quantitative listing standard requiring NYSE listed companies to have an average market capitalization of at least $75 million over any consecutive 30 trading-day period. Under applicable rules and regulations of the NYSE, the Company must respond to the NYSE within 45 days from the receipt of the notice with a business plan that demonstrates its ability to achieve compliance with the continued listing standards within 18 months from the receipt of the notice. If the Company does not submit a business plan demonstrating the ability to achieve such continued listing standards, the NYSE will commence suspension and delisting procedures. About Tronox Incorporated Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) -- http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. At March 31, 2008, the company's consolidated balance sheet showed $1.74 billion in total assets, $1.29 billion in total liabilities, and $451.9 million in stockholders' equity. TRONOX INC: Dennis Wanlass Appointed to Board of Directors ---------------------------------------------------------- Dennis L. Wanlass has been appointed to the Tronox Incorporated board of directors, effective Aug. 15, 2008. In addition, the board of directors named Mr. Wanlass interim chairman and chief executive officer succeeding Thomas W. Adams, who, at this time, will continue to serve as a member of the board but no longer works for the company. Mr. Wanlass joined Tronox in July 2008 as executive vice president of special projects. Mr. Wanlass has more than 35 years of experience in management, finance and accounting. He held leadership positions at Special Metals Corporation from 2001 to 2008, initially serving as the chief financial officer, moving to chief operations officer and eventually becoming the chief executive officer. From 1988 to 2001, he held executive positions of increasing responsibility with Geneva Steel LLC, including vice president, chief financial officer and treasurer. His experience also includes 13 years with Eastman Christensen and five years with KPMG. Mr. Wanlass' annual salary was increased from $500,000 to $640,000. About Tronox Incorporated Headquartered in Oklahoma City, Tronox Incorporated (NYSE:TRX) -- http://www.tronox.com/-- is a producer and marketer of titanium dioxide pigment. Titanium dioxide pigment is an inorganic white pigment used in paint, coatings, plastics, paper and many other everyday products. The company's five pigment plants, which are located in the United States, Australia, Germany and the Netherlands, supply performance products to approximately 1,100 customers in 100 countries. In addition, Tronox produces electrolytic products, including sodium chlorate, electrolytic manganese dioxide, boron trichloride, elemental boron and lithium manganese oxide. At March 31, 2008, the company's consolidated balance sheet showed $1.74 billion in total assets, $1.29 billion in total liabilities, and $451.9 million in stockholders' equity. US AIRWAYS: Flight Attendants Angry Over Incentives to Executives ----------------------------------------------------------------- US Airways Group Inc.'s flight attendants, represented by the Association of Flight Attendants-CWA, are outraged after seven of the company's top executives were awarded stock appreciation grants totaling millions of dollars. On Aug. 5, 2008, the company's Board of Directors Compensation Committee approved over 800,000 shares as part of the airline's "Equity Incentive Plan." Chairman and CEO Doug Parker received 275,000 shares. The stock appreciation rights have an exercise price of $6.70, the fair market value of the company's common stock on the date of grant. The stock appreciation rights have a seven year term and vest in one-third increments on each of the first three anniversaries of the date of grant. The stock appreciation rights also become fully vested upon termination due to death, disability, retirement, or in the event of a change in control of the company. "It is disheartening to watch US Airways top executives enrich themselves with performance based stock awards while flight attendants continue to work under a bankruptcy driven contract that slashed wages and eliminated pensions and benefits," said US Airways East AFA-CWA President Mike Flores. "While US Airways has improved its on time performance, the airline still ranks number one in customer complaints which makes it even harder to justify this performance bonus." US Airways West AFA-CWA President Lisa LeCarre, who represents the America West flight attendants of US Airways added, "While management has every right to award themselves performance based stock grants, it is a slap in the face to the hard working flight attendants who are facing job losses and have not received a simple cost-of-living increase in almost six years. It is also an affront to the passengers being nickel and dimed for such comforts as a glass of water. When will corporate America understand the devastating effects of this erosion on public and employee moral and trust?" 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. * * * As reported in the Troubled company Reporter on July 24, 2008, Moody's Investors Service downgraded the Corporate Family and Probability of Default Ratings of US Airways Group Inc. to Caa1 from B3 and lowered the ratings of its outstanding corporate debt instruments and certain Enhanced Equipment Trust Certificates (EETC). Moody's lowered the Speculative Grade Liquidity Assessment to SGL-4 from SGL-3. The rating outlook is negative. US SHIPPING: S&P Junks Ratings, Sees Covenant Breach in 3rd Qtr --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on U.S. Shipping Partners L.P. (U.S. Shipping) to 'CCC' from 'B-'. At the same time, S&P lowered the ratings on the senior secured debt to 'CCC' from 'B', and revised the recovery rating to '3' from '2', indicating expectations of meaningful (50%-70%) recovery in the event of a payment default. At the same time, S&P lowered the rating on the senior secured notes to 'CC', two notches below the corporate credit rating, while leaving the recovery rating unchanged at '6', indicating expectations of a modest (0%-10%) recovery in the event of a payment default. All ratings remain on CreditWatch, where they were placed on May 14, 2008, but the CreditWatch status is revised to developing from negative. "The downgrade reflects the probability of a financial covenant breach by the end of the third quarter, tightly constrained liquidity, and the company's deteriorating financial profile," said Standard & Poor's credit analyst Funmi Afonja. The company has stated that there is a "substantially increased" likelihood that it will not remain in compliance with financial covenants, relating to leverage (debt to EBITDA), fixed-charge, and interest coverage under its senior credit facility, by the end of the third quarter of 2008. The company has retained financial advisers to assist in exploring strategic alternatives, including the possible sale of the business or the sale of new equity, and other ways to increase liquidity and strengthen its financial resources. "If the company is not in compliance with its covenants, the lenders have a number of remedies, including preventing the partnership from making additional borrowings under its revolving credit facility and barring distributions on its common units (which the company recently suspended) until the company is again in compliance. If the company is successful in amending its covenants, it could incur fees and higher interest rates, and likely be required to suspend the partnership's common unit distribution. U.S. Shipping recently suspended distributions to subordinated and common unit holders, resulting in combined estimated annual savings of $33.5 million. Even so, we expect liquidity to remain tightly constrained over the next year," S&P says. "U.S. Shipping is engaged in transportation services between ports in the U.S., principally for refined petroleum products and petrochemical and commodity chemical products. Its 11-vessel fleet consists of 6 integrated tug barges (ITB), 3 parcel tankers, 1 product tanker, and 1 articulated tug barge (ATB). The ITBs generate approximately 50% of the company's revenues and at the end of the second quarter, five of the company's six ITBs traded on the spot market. "Standard & Poor's will assess the company's operating prospects, covenant compliance, liquidity, and the decision the company reaches in exploring its strategic alternatives in resolving the CreditWatch. We could lower ratings further if the company breaches its financial covenants, if liquidity constraints increase, or if operating performance further deteriorates. We could affirm ratings or raise them modestly if the company is able to negotiate covenant relief that gives it time to improve operating performance or explore a sale of the company." USA SPRINGS: Strikes Deal to Sell Water to Italy-Based Company -------------------------------------------------------------- By Bob Sanders of New Hampshire Business Review reports that USA Springs Inc. disclosed in bankruptcy filings it reached an agreement to sell water to an international organization based in Malta, Italy. The company has been planning to build a controversial bottling plant in Nottingham. Francesco Rotondo, the majority owner of the company, was in bankruptcy court on July 25 to ask for more time to secure a loan to pay them and finish the plant. According to the report, USA Springs has now all the necessary permits. Mr. Rotondo said he is working on closing a deal with two investors for more than $70 million that will enable him to keep control of the company he built over the years. According to the report, on Aug. Mr. Rotondo said negotiations for additional financing were proceeding and could be concluded "any day." But, according to the report, even if Mr. Rotondo secures a financing, he faces other obstacles. One is an opposition from a group called the Nottingham Tea Party. The group recently pushed an ordinance at the town meeting that would put the company in violation if it ever opened, according to the report. The plan has been criticized for its international ties and its possible detrimental environmental effects. Based in Nottingham, New Hampshire, USA Springs Inc. filed for Chapter 11 bankruptcy protection on June 27, 2008 (D. N.H. Case No. 08-11816). Armand M. Hyatt, Esq., at Hyatt & Flynn, PLLC, and Earl D. Munroe, Esq., at Muroe & Chew, represent the Debtor in its restructuring efforts. An Official Committee of Unsecured Creditors has been appointed in the case. The Committee's counsel is Terrie Harman, Esq., at Harman Law Offices. In its schedules, the Debtor disclosed $127,000,335 in assets and $13,913,901 in liabilities. WACHOVIA BANK: Moody's Holds Low-B Ratings on Six Class Certs. -------------------------------------------------------------- Moody's Investors Service upgraded the ratings of three classes and affirmed 14 classes of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2003- C7: -- Class A-1, $337,699,954, affirmed at Aaa -- Class A-2, $418,064,000, affirmed at Aaa -- Class X-C, Notional, affirmed at Aaa -- Class X-P, Notional, affirmed at Aaa -- Class B, $27,840,000, affirmed at Aaa -- Class C, $11,389,000, affirmed at Aaa -- Class D, $25,309,000, upgraded to Aa2 from Aa3 -- Class E, $13,920,000, upgraded to A1 from A2 -- Class F, $17,717,000, upgraded to A3 from Baa1 -- Class G, $12,654,000, affirmed at Baa2 -- Class H, $15,185,000, affirmed at Baa3 -- Class J, $11,389,000, affirmed at Ba1 -- Class K, $6,327,000, affirmed at Ba2 -- Class L, $6,327,000, affirmed at Ba3 -- Class M, $5,062,000, affirmed at B1 -- Class N, $5,062,000, affirmed at B2 -- Class O, $3,797,000, affirmed at B3 Moody's upgraded Classes D, E and F due to increased credit enhancement and defeasance. As of the August 15, 2008 distribution date, the transaction's aggregate certificate balance has decreased by approximately 7.6% to $935.5 million from $1.0 billion at securitization. The Certificates are collateralized by 124 mortgage loans ranging in size from less than 1.0% to 8.8% of the pool, with the top 10 loans representing 36.3% of the pool. Sixteen loans, representing 11.8% of the pool, have defeased and are collateralized by U.S. Government securities. At securitization the pool included three loans with investment grade underlying ratings. The underlying ratings for two of these loans, representing 5.2% of the pool, are now below investment grade. Currently only one loan, representing 5.1% of the pool, has an investment grade underlying rating. The pool has not experienced any losses since securitization. Currently there are three loans, representing 3.2% of the pool, in special servicing. Moody's estimates an aggregate loss of $5.6 million from the specially serviced loans. Twenty-four loans, representing 13.2% of the pool, are on the master servicer's watchlist. The master servicer's watchlist includes loans which meet certain portfolio review guidelines established as part of the Commercial Mortgage Securities Association's monthly reporting package. As part of our ongoing monitoring of a transaction, Moody's reviews the watchlist to assess which loans have material issues that could impact performance. Not all loans on the watchlist are delinquent or have significant issues. Moody's was provided with full-year 2007 operating results for 87.9% of the pool. Moody's loan to value ratio for the conduit component is 86.7% compared to 91.0% at Moody's last full review in December 2006 and 93.0% at securitization. The largest loan with an underlying rating is The Regency Square Mall Loan, which represents a 50.0% participation interest in a $95.3 million first mortgage loan. The loan is secured by the borrower's interest in a 1.5 million square foot regional mall located in Jacksonville, Florida. The mall is anchored by Sears, Dillard's, Belk and J.C. Penney. The center was 95.9% occupied as of December 2007, compared to 97.9% at last review. In-line shop sales have declined approximately 13.0% since securitization to $292 per square foot and the property's financial performance has been impacted by a decline in rental revenues. The loan sponsor is General Growth Properties, Inc. Moody's current underlying rating for the loan is A3 compared to A2 at last review. The second largest loan with an underlying rating is The Columbia Place Mall Loan, which is secured by the borrower's interest in a 1.1 million square foot regional mall located in Columbia, South Carolina. The center is anchored by Dillard's, Sears, Macy's and Steve & Barry's. Steve & Barry's declared Chapter 11 bankruptcy protection in July 2008. The property's performance has been impacted by increased operating expenses and a decline in rental revenues. The loan sponsor is CBL & Associates Properties, Inc. Moody's current underlying rating for the loan is below investment grade compared to Baa3 at last review. The third largest loan with an underlying rating is The Downtown Short Pump Loan, which is secured by a 126,100 square foot shopping center located in Richmond, Virginia. Major tenants include Barnes & Noble and Regal Cinemas. The center was 90.9% occupied as of December 2007 compared to 92.6% at last review and 100.0% at securitization. Net operating income in 2007 was 14.7% lower than 2006, primarily due to a decline in rental revenues. The loan is interest only throughout the term. Moody's current underlying rating is below investment grade compared to Baa3 at last review. The top three conduit loans represent 15.9% of the pool. The largest conduit loan is the Chelsea Market Loan, which represents a 50.0% participation interest in a $164.3 million first mortgage loan. The loan is secured by a 1.1 million square foot Class B loft-style office building with ground level retail located in the Chelsea office submarket of New York City. The property was 98.8% occupied as of December 2007, essentially the same as at last review. The largest tenants include Scripps Network Inc., Major League Baseball and Oxygen Media -- Food Network. The loan sponsor is The Jamestown Companies. Moody's LTV is 77.5% compared to 79.6% at last review. The second largest conduit loan is the Santa Clara County Office Loan, which is secured by a 152,400 square foot Class A office building located in San Jose, California. The building is 100.0% occupied by Santa Clara County through December 2012. The loan matures in September 2010. Moody's LTV is 94.6% compared to 97.2% at last review. The third largest conduit loan is the BJB Portfolio Loan, which is secured by seven apartment properties located in three different residential areas in Chicago, Illinois. Property performance has improved due to increased rental revenues and stable expenses. The loan matures in October 2008. Moody's LTV is 86.5% compared to 91.6% at last review. WENTWORTH ENERGY: Inks Amended Rights Deal with Investors --------------------------------------------------------- In a report on Form 8-K filed with the Securities and Exchange Commission on November 6, 2007, Wentworth Energy, Inc. said it entered into an Amended and Restated Registration Rights Agreement with certain investors that provided for the registration of shares of common stock. On August 14, 2008, the company entered into a Waiver Under Amended and Restated Registration Rights Agreement, effective June 30, 2008, to amend the Registration Rights Agreement by unconditionally waiving the requirement of the company to file registration statements under Section 2 of the Registration Rights Agreement. A copy of the Amended and Restated Registration Rights Agreement is available at http://ResearchArchives.com/t/s?3112 About Wentworth Energy Headquartered in Palestine, Texas, Wentworth Energy Inc. (OTC BB: WNWG) -- http://www.wentworthenergy.com/-- is an independent exploration and production company focused on developing North American oil and natural gas reserves. The company owns a 27,557- acre mineral block in east central Freestone County and west central Anderson County in the active East Texas Basin, as well as an active oil and gas contract drilling company, Barnico Drilling Inc., which has serviced East Texas drilling demand since the late 1970s. Going Concern Doubt Hein & Associates LLP, in Dallas, expressed substantial doubt aobut Wentworth Energy Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's significant recurring losses from operations and working capital deficiency. WESTERN IOWA: 8th Circuit Favors Buyers Over Fungible Goods ----------------------------------------------------------- The Eighth U.S. Circuit Court of Appeals ruled on Aug. 13, 2008, that prepetition buyers of Western Iowa Limestone, Inc. won over a secured lender although the buyers hadn't removed their acquired agricultural lime from Western Iowa's premises before the bankruptcy filing, William Rochelle relates. The Circuit Court's ruling reinstated a previous ruling by the U.S. Bankruptcy Court for the District of Nebraska. The secured lender had asserted that the lime was part of its collateral since the purchased goods were not segregated, were fungible, and were kept in the Debtor's premises, Mr. Rochelle says. The Bankruptcy Court had issued a ruling in favor of the buyers, which the Bankruptcy Appellate Panel reversed, Mr. Rochelle notes. Mr. Rochelle relates that the Circuit Court based its decision on the Uniform Commercial Code in effect in Iowa and found that constructive possession was enough to defeat the lender's security interest. The Circuit Court said that although the goods were fungible, the buyers had constructive possession of the lime, according to Mr. Rochelle. About Western Iowa Headquartered in Harlan, Iowa, Western Iowa Limestone, Inc., is a construction company and a producer of limestone. The Company filed for chapter 11 protection on Dec. 12, 2005 (Bankr. D. Neb. Case No. 05-85930). Richard D. Myers, Esq., and Alan E. Pedersen, Esq., McGill, Gotsdiner, Workman & Lepp, P.C., L.L.O., represent the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in the Debtor's case. When the Debtor filed for protection from its creditors, it listed estimated assets of $1 million to $10 million and estimated debts of $10 million to $50 million. WOODSIDE GROUP: Involuntary Chapter 11 Case Summary --------------------------------------------------- Alleged Debtor: Woodside Group, LLC 39 East Eagleridge Drive Suite 102 North Salt Lake, UT 84054 Case Number: 08-20682 Debtor-affiliates subject to separate Involuntary Chapter 11 petitions: Entity Case No. ------ -------- Pleasant Hill Investments, LC 08-20686 WDS Holdings, Inc. 08-20688 BCD 99, LLC 08-20690 Woodside 04N, LP 08-20692 Woodside 04S, LP 08-20694 Woodside 05N, LP 08-20699 Woodside 05S, LP 08-20701 Woodside 06N, LP 08-20704 Woodside 7N, LP 08-20706 TBB 03, LLC 08-20711 Menifee Woodside, LLC 08-20714 MHA02, LLC 08-20728 Monterey Woodside, LLC 08-20729 MWG 00, LLC 08-20730 MWL 01, LLC 08-20734 Woodside Autumn Ridge, LLC 08-20735 Woodside Glenmere, LLC 08-20736 Woodside Clarendon Hills, LLC 08-20737 Woodside Legacy, LLC 08-20738 Woodside Homes of Southern California, LLC 08-20742 Woodside AMR 91, LLC 08-20744 Woodside Paseo 5000, LLC 08-20746 Woodside Paseo 6000, LLC 08-20748 Woodside Paseo 7200, LLC 08-20750 Woodside Vista Montana, LLC 08-20751 Woodside Weston Ranch, LLC 08-20753 Foxboro 50's, LLC 08-20754 Foxboro Coventry, LLC 08-20755 Foxboro Estates, LLC 08-20756 Foxboro Villages, LLC 08-20757 Ivywood Interior Design, LLC 08-20758 Oquirrh Highlands Condominiums, LLC 08-20759 Pleasant Valley Investments, LC 08-20760 Portola Development Company, LC 08-20762 Portola Development, Arizona, LLC 08-20763 Portola Development, Utah, LC 08-20764 Saratoga Land Development, LLC 08-20765 Sonora HOA Management, LLC 08-20766 Sterling 69, LLC 08-20767 WDS GP, Inc. 08-20768 WGP Group, LLC 08-20770 Woodside 20/25, LLC 08-20772 Woodside Aberdeen, LLC 08-20774 Woodside Allerton, LLC 08-20775 Woodside Amberly, LLC 08-20776 Woodside Amelia Lakes, LLC 08-20777 Woodside Avalon Park, LLC 08-20778 Woodside Avalon, LLC 08-20779 Woodside Ballantrae, LLC 08-20780 Woodside Bella Fresca, Inc. 08-20782 Woodside Berkeley, LLC 08-20783 Woodside Blue Water Bay, LLC 08-20784 Woodside Bridges at Boulder Creek, LLC 08-20785 Woodside Brookstone, LLC 08-20786 Woodside Buffalo Ridge, LLC 08-20788 Woodside Cambria, LLC 08-20789 Woodside Canyon Creek, LLC 08-20790 Woodside Casa Palermo, LLC 08-20791 Woodside Castleton, LLC 08-20792 Woodside Cedar Creek, LLC 08-20793 Woodside Clearwater, LLC 08-20794 Woodside Colonial Charles SFD, LLC 08-20795 Woodside Colonial Charles Villas, LLC 08-20796 Woodside Communities - WDC, LLC 08-20797 Woodside Communities of North Florida, LLC 08-20798 Woodside Cortez Heights, LLC 08-20799 Woodside Daytona Land, LLC 08-20800 Woodside Eagle Marsh North, LLC 08-20801 Woodside Eagle Marsh South, LLC 08-20802 Woodside Encore at Sunset Ranch, LLC 08-20803 Woodside Exeter South, LLC 08-20804 Woodside Farmington Hollow Cottages, LLC 08-20805 Woodside Farmington Hollow Estates, LLC 08-20806 Woodside Farmington Meadows, LLC 08-20807 Woodside Fieldstone Ranch, LLC 08-20808 Woodside Fieldstone, LLC 08-20809 Woodside Finisterre, LLC 08-20810 Woodside Foothills Sunrise, LLC 08-20811 Woodside Foothills West, LLC 08-20812 Woodside Garden Gate, LLC 08-20813 Woodside Grande Premier, LLC 08-20814 Woodside Greyhawk, LLC 08-20815 Woodside Grouse Pointe, LLC 08-20816 Woodside Hearthstone, LLC 08-20817 Woodside Heritage Lake 129, Inc. 08-20818 Woodside Heritage Lake 150, Inc. 08-20820 Woodside Heritage Lake 7200, Inc. 08-20821 Woodside Highland Ridge, LLC 08-20825 Woodside Homes Corporation 08-20827 Woodside Homes of Arizona, Inc. 08-20830 Woodside Homes of California, Inc. 08-20832 Woodside Homes of Central California, Inc. 08-20834 Woodside Homes of Florida, LLC 08-20837 Woodside Homes of Fresno, Inc. 08-20840 Woodside Homes of Minnesota, Inc. 08-20842 Woodside Homes of Nevada, Inc. 08-20843 Woodside Homes of Northern California, Inc. 08-20844 Woodside Homes of Reno, LLC 08-20845 Woodside Homes of South Texas, LLC 08-20846 Woodside Homes of Southeast Florida, LLC 08-20847 Woodside Home Sales Corp. 08-20850 Woodside Hunters Creek, LLC 08-20852 Woodside Jackrabbit Estates, LLC 08-20855 Woodside Karston Cove, LLC 08-20861 Woodside Kinder Ranch, LLC 08-20864 Woodside Knoll Creek, LLC 08-20866 Woodside Land Holdings, LLC 08-20868 Woodside Las Colinas, LLC 08-20869 Woodside Legacy Oaks, LLC 08-20871 Woodside Madison Colony, LLC 08-20872 Woodside Magma Ranch, LLC 08-20874 Woodside Majestic Oaks, LLC 08-20875 Woodside Meadows of Big Lake, LLC 08-20877 Woodside Menifee 105, Inc. 08-20879 Woodside Montrose, Inc. 08-20881 Woodside Murabella, LLC 08-20882 Woodside North MPLS, LLC 08-20883 Woodside Northridge, LLC 08-20885 Woodside Palmilla, LLC 08-20886 Woodside Palomar, LLC 08-20893 Woodside Park Paseo, LLC 08-20895 Woodside Parkview, LLC 08-20899 Woodside Pebble Creek, LLC 08-20901 Woodside Preserve at Boulder Creek, LLC 08-20905 Woodside Provence,LLC 08-20906 Woodside Quail Crossing, LLC 08-20909 Woodside Rio Vista, LLC 08-20912 Woodside Riverwalk Preserve, LLC 08-20915 Woodside Rocking Horse, LLC 08-20916 Woodside Rockwell, LLC 08-20923 Woodside Rocky Pen, LLC 08-20927 Woodside Rogers Ranch, LLC 08-20937 Woodside Rosewood, LLC 08-20939 Woodside Royal Meadows, LLC 08-20940 Woodside S.O., LLC 08-20941 Woodside Scotland Heights, LLC 08-20942 Woodside Sienna, LLC 08-20943 Woodside Solano, LLC 08-20944 Woodside Somerset, LLC 08-20945 Woodside South Brook, LLC 08-20946 Woodside Southern Hills, LLC 08-20947 Woodside Southridge, LLC 08-20948 Woodside Springs at Boulder Creek, LLC 08-20949 Woodside Stonehaven, LLC 08-20950 Woodside Stoneybrook, LLC 08-20951 Woodside Summerwood, LLC 08-20952 Woodside Summit at Foothills Reserve, LLC 08-20953 Woodside Summit at Riverwalk, LLC 08-20954 Woodside Sunrise at Riverwalk, LLC 08-20955 Woodside Sunset Farms, LLC 08-20956 Woodside Talaverde, LLC 08-20958 Woodside Tampa Palms, LLC 08-20959 Woodside Tempe Village, LLC 08-20960 Woodside Texas Holdings, LLC 08-20962 Woodside Texas Land Holdings, LLC 08-20963 Woodside Thurnbeck, LLC 08-20964 Woodside Tierre Verde 301, LLC 08-20965 Woodside Timberlake, LLC 08-20969 Woodside Trails North at Horsemans Park, LLC 08-20972 Woodside Triana, LLC 08-20975 Woodside Trillium, LLC 08-20979 Woodside Trinity Oaks 65, LLC 08-20981 Woodside Trinity Oaks 55, LLC 08-20985 Woodside Tuscan Oaks, LLC 08-20995 Woodside Two Creeks 50, LLC 08-21002 Woodside Two Creeks 65, LLC 08-21007 Woodside Two Creeks Villas, LLC 08-21008 Woodside Valencia, LLC 08-21012 Woodside Via Valencia, LLC 08-21013 Woodside Via Ventura, LLC 08-21016 Woodside Vicinato, LLC 08-21017 Woodside Villa Palazzo, LLC 08-21018 Woodside Villa Palermo, LLC 08-21022 Woodside Walden, LLC 08-21024 Woodside Watson 308, LLC 08-21030 Woodside Wildwood, LLC 08-21035 Woodside Willowbrook, LLC 08-21036 Type of Business: The Debtors are into personalized-driven home building. See http://www.woodside-homes.com/ Involuntary Petition Date: August 20, 2008 Court: Central District of California (Riverside) Judge: Peter Carroll Petitioner's Counsel: Susy Li, Esq. Bingham McCutchen LLP 355 S Grand Avenue, Suite 4400 Los Angeles, CA 90071-3106 Tel: (213) 680-6400 Fax: (213) 680-6499 Email: susy.li@bingham.com Woodside Group, LLC and debtor-affiliates' petitioners: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ John Hancock Life Insurance Noteholder $51,900,000 Company 197 Clarendon Street C-2 Boston, MA 02117 AXA Equitable Life Insurance Noteholder $40,000,000 Company 1290 Avenue of the Americas New York, NY 10104 Metropolitan Life Insurance Noteholder $35,500,000 Company 10 Park Avenue Morristown, NJ 07962-1902 New York Life Insurance Noteholder $18,500,000 Company 51 Madison Avenue New York, NY 10010 Security Life of Denver Noteholder $10,000,000 Insurance Company by ING Investment Management LLC (as agent) 5780 Powers Ferry Road NW Suite 300 Atlanta, GA 30327-4349 * S&P Cuts 49 Ratings on $4.441BB in U.S. Asset-Backed CDOs ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 49 tranches from 11 U.S. cash flow and hybrid collateralized debt obligation transactions. "We removed 24 of the lowered ratings from CreditWatch with negative implications. At the same time, we placed one rating on CreditWatch negative. The ratings on 25 of the downgraded tranches remain on CreditWatch with negative implications, indicating a significant likelihood of further downgrades. The CreditWatch placements primarily affect transactions for which a significant portion of the collateral assets currently have ratings on CreditWatch negative or have significant exposure to assets rated in the 'CCC' category," S&P explains. The 49 downgraded U.S. cash flow and hybrid tranches have a total issuance amount of $4.441 billion. Ten of the 11 affected transactions are mezzanine structured finance (SF) CDOs of asset- backed securities (ABS), which are collateralized in large part by mezzanine tranches of residential mortgage-backed securities (RMBS) and other SF securities. The other transaction is a high- grade SF CDO of ABS, which was collateralized at origination primarily by 'AAA' through 'A' rated tranches of RMBS and other SF securities. [The] CDO downgrades reflect a number of factors, including credit deterioration and recent negative rating actions on U.S. subprime RMBS securities. "To date, including the CDO tranches listed below and including actions on both publicly and confidentially rated tranches, we have lowered our ratings on 3,489 tranches from 826 U.S. cash flow, hybrid, and synthetic CDO transactions as a result of stress in the U.S. residential mortgage market and credit deterioration of U.S. RMBS. In addition, 1,373 ratings from 439 transactions are currently on CreditWatch negative for the same reasons. In all, we have downgraded $385.929 billion of CDO issuance. Additionally, our ratings on $37.738 billion in securities have not been lowered but are currently on CreditWatch negative, indicating a high likelihood of future downgrades," S&P says. Standard & Poor's will continue to monitor the CDO transactions it rates and take rating actions, including CreditWatch placements, when appropriate. RATINGS LOWERED Rating Transaction Class To From ----------- ----- -- ---- Acacia CDO 12 Ltd. A-1 BBB+/Watch Neg AAA/Watch Neg Acacia CDO 12 Ltd. A-2 B-/Watch Neg A-/Watch Neg Acacia CDO 12 Ltd. B CCC-/Watch Neg BBB/Watch Neg Acacia CDO 12 Ltd. C CC BB+/Watch Neg Acacia CDO 12 Ltd. D CC BB-/Watch Neg Ayresome CDO I Ltd. A-2 BBB/Watch Neg AA/Watch Neg Ayresome CDO I Ltd. A-3 BBB/Watch Neg AA/Watch Neg Ayresome CDO I Ltd. B BB/Watch Neg A-/Watch Neg Ayresome CDO I Ltd. C B-/Watch Neg BBB+/Watch Neg Ayresome CDO I Ltd. ComboSecs CC BB/Watch Neg Ayresome CDO I Ltd. D CCC-/Watch Neg BB+/Watch Neg Duke Funding VII Ltd. I-A1 AA/Watch Neg AAA/Watch Neg Duke Funding VII Ltd. I-A2 AA/Watch Neg AAA/Watch Neg Duke Funding VII Ltd. I-A2v AA/Watch Neg AAA/Watch Neg Duke Funding VII Ltd. II BB-/Watch Neg BBB+/Watch Neg Duke Funding VII Ltd. III-A CC BB/Watch Neg Duke Funding VII Ltd. III-B CC BB/Watch Neg Duke Funding VII Ltd. IV-A CC CCC-/Watch Neg Duke Funding VII Ltd. IV-B CC CCC-/Watch Neg Fortius II Funding Ltd. A-1 CCC+/Watch Neg BBB-/Watch Neg Fortius II Funding Ltd. A-2 CC BB-/Watch Neg Fortius II Funding Ltd. B CC CCC+/Watch Neg Fortius II Funding Ltd. C CC CCC-/Watch Neg Hudson Mezzanine A-1 CCC/Watch Neg BB-/Watch Neg Funding 2006-2 Ltd. Hudson Mezzanine A-2 CC B-/Watch Neg Funding 2006-2 Ltd. Hudson Mezzanine B CC CCC+/Watch Neg Funding 2006-2 Ltd. Hudson Mezzanine C CC CCC-/Watch Neg Funding 2006-2 Ltd. Longshore CDO A-2 CC CCC-/Watch Neg MKP CBO V Ltd. A-1 BBB/Watch Neg AAA/Watch Neg MKP CBO V Ltd. A-2 CCC/Watch Neg BBB+/Watch Neg MKP CBO V Ltd. B CC BB/Watch Neg MKP CBO V Ltd. C CC B+/Watch Neg MKP CBO V Ltd. D CC B/Watch Neg MKP CBO V Ltd. E CC CCC/Watch Neg Mulberry Street CDO Ltd. A-1A AA AAA/Watch Neg Mulberry Street CDO Ltd. A-1B A-/Watch Neg AAA/Watch Neg Mulberry Street CDO Ltd. A-2 BB-/Watch Neg AA-/Watch Neg Mulberry Street CDO Ltd. B CC CCC/Watch Neg Northwall Funding A-2 BB-/Watch Neg AA/Watch Neg CDO I Ltd. Northwall Funding B CC BBB-/Watch Neg CDO I Ltd. STAtic ResidenTial A-1 AA+/Watch Neg AAA/Watch Neg CDO 2005-B Ltd. STAtic ResidenTial A-2 A+/Watch Neg AAA/Watch Neg CDO 2005-B Ltd. STAtic ResidenTial B BB/Watch Neg AA/Watch Neg CDO 2005-B Ltd. STAtic ResidenTial C B/Watch Neg A+/Watch Neg CDO 2005-B Ltd. STAtic ResidenTial D CCC-/Watch Neg BBB/Watch Neg CDO 2005-B Ltd. Trainer Wortham A-2 B+/Watch Neg A+/Watch Neg First Republic CBO III Trainer Wortham B CC BBB-/Watch Neg First Republic CBO III Trainer Wortham C CC BB/Watch Neg First Republic CBO III Trainer Wortham D CC CCC-/Watch Neg First Republic CBO III RATING PLACED ON CREDITWATCH NEGATIVE Rating Transaction Class To From ----------- ----- -- ---- Northwall Funding A-1 AAA/Watch Neg AAA CDO I Ltd. OTHER RATINGS REVIEWED Transaction Class Rating ----------- ----- ------ Ayresome CDO I Ltd. A-1a AAA Ayresome CDO I Ltd. A-1b AAA Fortius II Funding Ltd. D CC Fortius II Funding Ltd. E CC Fortius II Funding Ltd. S A+/Watch Neg Hudson Mezzanine Funding S AA/Watch Neg 2006-2 Ltd. Hudson Mezzanine Funding D CC 2006-2 Ltd. Hudson Mezzanine Funding E CC 2006-2 Ltd. Longshore CDO Funding A-1 AA 2007-3 Ltd. Longshore CDO Funding A-3 CC 2007-3 Ltd. Longshore CDO Funding B CC 2007-3 Ltd. Longshore CDO Funding C CC 2007-3 Ltd. Longshore CDO Funding D CC 2007-3 Ltd. MKP CBO V Ltd. F CC Mulberry Street C CC CDO Ltd. Northwall Funding C CC CDO I Ltd. Trainer Wortham First A-1 AAA Republic CBO III Trainer Wortham First Pre.Shares CC Republic CBO III * S&P Cuts 209 Ratings on 15 2006, 1st-Half 2007 Alt-A RMBS Deals ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 209 classes from 15 residential mortgage-backed securities transactions backed by U.S. Alternative-A (Alt-A) mortgage loan collateral issued in 2006 and first-half 2007. "We removed 147 of the lowered ratings from CreditWatch with negative implications. In addition, we affirmed our ratings on 29 classes from these deals and removed 13 of these ratings from CreditWatch negative," S&P says. The downgrades reflect S&P's opinion that projected credit support for the affected classes is insufficient to maintain the previous ratings, given S&P's current projected losses, as stated in "S&P Publishes Revised Projected Losses For '06/'07 U.S. Alt-A Short- Reset Hybrid, Neg-Am RMBS." S&P arrived at its estimated projected losses for the Alt-A RMBS deals using the analysis outlined in "Standard & Poor's Revised Default And Loss Curves For U.S. Alt-A RMBS Transactions," published Dec. 19, 2007. The revised loss assumptions S&P used in this review also include its new loss severity assumptions, as outlined in "Criteria: Standard & Poor's Revises U.S. Subprime, Prime, And Alternative-A RMBS Loss Assumptions," published July 30, 2008. "As part of our analysis, we considered the characteristics of the underlying mortgage collateral as well as macroeconomic influences. For example, the risk profile of the underlying mortgage pools influences our default projections, while the outlook for housing price appreciation and the health of the housing market influence our loss severity assumptions," S&P says. "To assess the creditworthiness of each class, we reviewed the individual delinquency and loss trends of each transaction for changes, if any, in risk characteristics, servicing, and the expected ability to withstand additional credit deterioration. In order to maintain a rating higher than 'B', a class had to absorb losses in excess of the base-case assumptions we assumed in our analysis. For example, a class may have to withstand approximately 115% of our base-case loss assumptions in order to maintain a 'BB' rating, while a different class may have to withstand approximately 125% of our base-case loss assumptions to maintain a 'BBB' rating. A class that has an affirmed 'AAA' rating can likely withstand approximately 150% of our base-case loss assumptions under our analysis, subject to individual caps and qualitative factors assumed on specific transactions. "We also took into account the pay structure of each transaction and stressed each class with only those losses that would occur while it remained outstanding. In addition, we gave excess interest only for the amount of time the class would be outstanding. For example, if we projected a class to pay down in 15 months, then we only applied 15 months of losses to that class. Additionally, in such a case we assumed 15 months of excess spread if the class was structured with excess spread as credit enhancement. "Our ratings on 2,148 classes from 279 U.S. Alt-A transactions remain on CreditWatch negative. In the coming weeks, Standard & Poor's will continue to analyze the remaining transactions affected by our revised loss expectations. We will be analyzing deals in order of performance, looking at the worse-performing deals first." RATINGS LOWERED Alternative Loan Trust 2006-OC1 Series 2006-OC1 Rating Class CUSIP To From ----- ----- -- ---- M-6 12668BJM6 CC CCC M-7 12668BJN4 CC CCC Alternative Loan Trust 2006-OC2 Series 2006-OC2 Rating Class CUSIP To From ----- ----- -- ---- M-6 12668BRP0 CC CCC M-9 12668BRS4 D CC Alternative Loan Trust 2006-OC4 Series 2006-OC4 Rating Class CUSIP To From ----- ----- -- ---- M-6 021455AL4 CC CCC M-7 021455AM2 CC CCC B 021455AQ3 D CC Alternative Loan Trust 2006-OC7 Series 2006-OC7 Rating Class CUSIP To From ----- ----- -- ---- M-6 23243VAK6 CC CCC Alternative Loan Trust 2007-9T1 Series 2007-9T1 Rating Class CUSIP To From ----- ----- -- ---- 1X 02150JAS1 AA AAA 2-X 02150JAZ5 AA AAA 3-X 02150JBB7 B AAA M-1 02150JBE1 CCC BB+ M-2 02150JBL5 CC BB M-3 02150JBM3 CC BB- M-4 02150JBN1 CC B M-5 02150JBP6 CC CCC M-6 02150JBQ4 CC CCC Alternative Loan Trust 2007-OA6 Series 2007-OA6 Rating Class CUSIP To From ----- ----- -- ---- A-3 02150PAD0 A AAA M-1 02150PAF5 BBB AA+ M-2 02150PAG3 BB AA M-3 02150PAH1 B AA- M-4 02150PAJ7 CCC A+ M-5 02150PAK4 CCC A M-6 02150PAL2 CCC A- M-7 02150PAM0 CC BB+ M-8 02150PAN8 CC CCC M-9 02150PAP3 CC CCC Impac Secured Assets Trust 2006-2 Series 2006-2 Rating Class CUSIP To From ----- ----- -- ---- 1-M-2 45256VAG2 CCC B 1-M-3 45256VAH0 CC CCC 1-M-4 45256VAJ6 CC CCC 1-M-5 45256VAK3 CC CCC 1-M-6 45256VAL1 CC CCC 1-M-8 45256VAN7 D CC 1-B 45256VAP2 D CC IndyMac INDX Mortgage Loan Trust 2006-AR21 Series 2006-AR21 Rating Class CUSIP To From ----- ----- -- ---- A-2 45660HAB4 BB AAA M-1 45660HAD0 B BBB+ M-2 45660HAE8 CCC BBB M-3 45660HAF5 CCC B M-5 45660HAH1 CC CCC M-9 45660HAM0 D CC Merrill Lynch Alternative Note Asset Trust Series 2007-A2 Series 2007-A2 Rating Class CUSIP To From ----- ----- -- ---- M-5 59024FAM6 CC CCC Morgan Stanley Mortgage Loan Trust 2006-13ARX Series 2006-13ARX Rating Class CUSIP To From ----- ----- -- ---- A-2 61750PAB4 BBB AAA A-3 61750PAC2 BBB AAA M-4 61750PAH1 CC CCC M-5 61750PAJ7 CC CCC Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR4 Series 2006-AR4 Rating Class CUSIP To From ----- ----- -- ---- M-3 65538DAJ4 CC CCC M-4 65538DAK1 CC CCC M-7 65538DAN5 D CC Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR2 Series 2006-AR2 Rating Class CUSIP To From ----- ----- -- ---- C-B-2 65535VUM8 CC CCC C-B-5 65535VUQ9 D CC III-M-5 65535VUY2 D CC Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR3 Series 2006-AR3 Rating Class CUSIP To From ----- ----- -- ---- A-1A 65537EAA2 BBB AAA A-3A 65537EAD6 BBB AAA A-4A 65537EAE4 BBB AAA M-2 65537EAH7 CC CCC M-3 65537EAJ3 CC CCC Ownit Mortgage Loan Asset-Backed Certificates Series 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- B-5 69121PCW1 CC CCC RALI Series 2006-QA7 Trust Series 2006-QA7 Rating Class CUSIP To From ----- ----- -- ---- II-A-1 751152AB5 BBB AAA M-5 751152AH2 CC CCC M-6 751152AJ8 CC CCC M-7 751152AK5 CC CCC M-8 751152AL3 CC CCC RATINGS LOWERED AND REMOVED FROM CREDITWATCH NEGATIVE Alternative Loan Trust 2006-OC1 Series 2006-OC1 Rating Class CUSIP To From ----- ----- -- ---- 1-A-2 12668BJE4 BB AAA/Watch Neg 2-A-2 12668BJT1 AA AAA/Watch Neg 2-A-3B 12668BJV6 BB AAA/Watch Neg M-1 12668BJG9 B AA+/Watch Neg M-2 12668BJH7 CCC A/Watch Neg M-3 12668BJJ3 CC BBB/Watch Neg M-4 12668BJK0 CC BB/Watch Neg M-5 12668BJL8 CC B/Watch Neg Alternative Loan Trust 2006-OC2 Series 2006-OC2 Rating Class CUSIP To From ----- ----- -- ---- 1-A 12668BRC9 BB AAA/Watch Neg 2-A-3 12668BRG0 BB AAA/Watch Neg M-1 12668BRJ4 B AA+/Watch Neg M-2 12668BRK1 CCC A/Watch Neg M-3 12668BRL9 CCC BBB/Watch Neg M-4 12668BRM7 CC BB/Watch Neg M-5 12668BRN5 CC B/Watch Neg Alternative Loan Trust 2006-OC4 Series 2006-OC4 Rating Class CUSIP To From ----- ----- -- ---- 1-A 021455AA8 BB AAA/Watch Neg 2-A-3 021455AE0 BB AAA/Watch Neg M-1 021455AF7 B AA+/Watch Neg M-2 021455AG5 CCC A/Watch Neg M-3 021455AH3 CCC BBB/Watch Neg M-4 021455AJ9 CCC BB/Watch Neg Alternative Loan Trust 2006-OC7 Series 2006-OC7 Rating Class CUSIP To From ----- ----- -- ---- 1-A 23243VAA8 BB AAA/Watch Neg 2-A-2B 23243VAR1 BB AAA/Watch Neg 2-A-3 23243VAD2 BB AAA/Watch Neg M-1 23243VAE0 B AA+/Watch Neg M-2 23243VAF7 CCC A/Watch Neg M-3 23243VAG5 CCC BBB/Watch Neg M-4 23243VAH3 CC BB/Watch Neg M-5 23243VAJ9 CC B/Watch Neg Alternative Loan Trust 2007-9T1 Series 2007-9T1 Rating Class CUSIP To From ----- ----- -- ---- 1-A-1 02150JAA0 BB AAA/Watch Neg 1-A-3 02150JAC6 AA AAA/Watch Neg 1-A-4 02150JAD4 BB AAA/Watch Neg 1-A-5 02150JAE2 AA AAA/Watch Neg 1-A-6 02150JAF9 AA AAA/Watch Neg 1-A-7 02150JAG7 AA AAA/Watch Neg 1-A-8 02150JAH5 AA AAA/Watch Neg 1-A-9 02150JAJ1 BB AAA/Watch Neg 1-A-10 02150JAK8 AA AAA/Watch Neg 1-A-11 02150JAL6 BB AAA/Watch Neg 1-A-12 02150JAM4 BB AAA/Watch Neg 1-A-13 02150JAN2 BB AAA/Watch Neg 1-A-14 02150JAP7 BB AAA/Watch Neg 1-A-15 02150JAQ5 BB AAA/Watch Neg 1-A-16 02150JAR3 B AAA/Watch Neg 1-A-17 02150JBR2 AA AAA/Watch Neg 1-A-18 02150JBS0 AA AAA/Watch Neg 1-A-19 02150JBT8 AA AAA/Watch Neg 1-A-20 02150JBU5 AA AAA/Watch Neg 1-A-21 02150JBV3 AA AAA/Watch Neg 1-A-22 02150JBW1 AA AAA/Watch Neg 1-A-23 02150JBX9 AA AAA/Watch Neg 1-A-24 02150JBY7 AA AAA/Watch Neg 1-A-25 02150JBZ4 AA AAA/Watch Neg 1-A-26 02150JCA8 AA AAA/Watch Neg 1-A-27 02150JCB6 AA AAA/Watch Neg 1-A-28 02150JCC4 AA AAA/Watch Neg 1-A-29 02150JCD2 AA AAA/Watch Neg 1-A-30 02150JCE0 AA AAA/Watch Neg 1-A-31 02150JCF7 AA AAA/Watch Neg 1-A-32 02150JCG5 AA AAA/Watch Neg 1-A-33 02150JCH3 AA AAA/Watch Neg 1-A-34 02150JCJ9 AA AAA/Watch Neg 1-A-35 02150JCK6 AA AAA/Watch Neg 1-A-36 02150JCL4 AA AAA/Watch Neg 1-A-37 02150JCM2 AA AAA/Watch Neg 1-A-38 02150JCN0 AA AAA/Watch Neg 1-A-39 02150JCP5 AA AAA/Watch Neg 1-A-40 02150JCQ3 AA AAA/Watch Neg 2-A-1 02150JAT9 BB AAA/Watch Neg 2-A-2 02150JAU6 AA AAA/Watch Neg 2-A-3 02150JAV4 AA AAA/Watch Neg 2-A-4 02150JAW2 BB AAA/Watch Neg 2-A-5 02150JAX0 BB AAA/Watch Neg 2-A-6 02150JAY8 B AAA/Watch Neg 2-A-7 02150JCR1 AA AAA/Watch Neg 2-A-8 02150JCS9 AA AAA/Watch Neg 2-A-9 02150JCT7 AA AAA/Watch Neg 2-A-10 02150JCU4 AA AAA/Watch Neg 2-A-11 02150JCV2 AA AAA/Watch Neg 2-A-12 02150JCW0 AA AAA/Watch Neg 2-A-13 02150JCX8 AA AAA/Watch Neg 2-A-14 02150JCY6 AA AAA/Watch Neg 2-A-15 02150JCZ3 AA AAA/Watch Neg 2-A-16 02150JDA7 AA AAA/Watch Neg 2-A-17 02150JDB5 AA AAA/Watch Neg 2-A-18 02150JDC3 AA AAA/Watch Neg 2-A-19 02150JDD1 AA AAA/Watch Neg 2-A-20 02150JDE9 AA AAA/Watch Neg 2-A-21 02150JDF6 AA AAA/Watch Neg 2-A-22 02150JDG4 AA AAA/Watch Neg 3-A-1 02150JBA9 B AAA/Watch Neg PO 02150JBC5 AA AAA/Watch Neg Impac Secured Assets Trust 2006-2 Series 2006-2 Rating Class CUSIP To From ----- ----- -- ---- 1-A1-2 45256VAB3 BB AAA/Watch Neg 1-A2-B 45256VAD9 BB AAA/Watch Neg 1-A2-C 45256VAE7 BB AAA/Watch Neg Merrill Lynch Alternative Note Asset Trust Series 2007-A2 Series 2007-A2 Rating Class CUSIP To From ----- ----- -- ---- A-1 59024FAA2 B AAA/Watch Neg A-2A 59024FAB0 BBB AAA/Watch Neg A-2B 59024FAC8 B AAA/Watch Neg A-3A 59024FAD6 BBB AAA/Watch Neg A-3B 59024FAE4 BBB AAA/Watch Neg A-3C 59024FAF1 BBB AAA/Watch Neg A-3D 59024FAG9 B AAA/Watch Neg M-1 59024FAH7 CCC A/Watch Neg M-2 59024FAJ3 CCC BB/Watch Neg M-3 59024FAK0 CC BB-/Watch Neg M-4 59024FAL8 CC B/Watch Neg Morgan Stanley Mortgage Loan Trust 2006-13ARX Series 2006-13ARX Rating Class CUSIP To From ----- ----- -- ---- A-4 61750PAD0 B AA/Watch Neg M-1 61750PAE8 CCC BBB/Watch Neg M-2 61750PAF5 CCC BB/Watch Neg M-3 61750PAG3 CC B/Watch Neg Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR4 Series 2006-AR4 Rating Class CUSIP To From ----- ----- -- ---- A-1A 65538DAA3 BBB AAA/Watch Neg A-1B 65538DAB1 B AAA/Watch Neg A-2 65538DAC9 B AAA/Watch Neg A-3 65538DAD7 B AAA/Watch Neg A-4A 65538DAE5 BBB AAA/Watch Neg A-4B 65538DAF2 B AAA/Watch Neg M-1 65538DAG0 CCC BBB/Watch Neg M-2 65538DAH8 CC BB/Watch Neg Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR2 Series 2006-AR2 Rating Class CUSIP To From ----- ----- -- ---- I-A 65535VUH9 BB AAA/Watch Neg II-A-1 65535VUJ5 BBB AAA/Watch Neg II-A-2 65535VUK2 BBB AAA/Watch Neg II-A-3 65535VUZ9 BB AAA/Watch Neg II-X 65535VVA3 BBB AAA/Watch Neg C-B-1 65535VUL0 CC B/Watch Neg III-A-1 65535VUS5 BBB AAA/Watch Neg III-A-2 65535VUT3 BBB AAA/Watch Neg III-M-1 65535VUU0 CCC B/Watch Neg Nomura Asset Acceptance Corp. Alternative Loan Trust Series 2006- AR3 Series 2006-AR3 Rating Class CUSIP To From ----- ----- -- ---- A-1B 65537EAB0 BB AAA/Watch Neg A-2 65537EAC8 BB AAA/Watch Neg A-3B 65537EAP9 BB AAA/Watch Neg A-4B 65537EAF1 BB AAA/Watch Neg M-1 65537EAG9 CCC B/Watch Neg Ownit Mortgage Loan Asset-Backed Certificates Series 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- M-2 69121PCM3 BBB AA+/Watch Neg M-3 69121PCN1 BB AA+/Watch Neg M-4 69121PCP6 B AA+/Watch Neg M-5 69121PCQ4 CCC AA+/Watch Neg M-6 69121PCR2 CCC AA+/Watch Neg B-1 69121PCS0 CC A/Watch Neg B-2 69121PCT8 CC BBB/Watch Neg B-3 69121PCU5 CC BB/Watch Neg B-4 69121PCV3 CC B/Watch Neg RALI Series 2006-QA7 Trust Series 2006-QA7 Rating Class CUSIP To From ----- ----- -- ---- I-A-1 751152AA7 BB AAA/Watch Neg II-A-2 751152AC3 BB AAA/Watch Neg M-1 751152AD1 CCC A/Watch Neg M-2 751152AE9 CCC BBB/Watch Neg M-3 751152AF6 CC BB/Watch Neg M-4 751152AG4 CC B/Watch Neg RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH NEGATIVE Alternative Loan Trust 2006-OC1 Series 2006-OC1 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 12668BJF1 AAA AAA/Watch Neg Alternative Loan Trust 2006-OC2 Series 2006-OC2 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 12668BRE5 AAA AAA/Watch Neg 2-A-2 12668BRF2 AAA AAA/Watch Neg Alternative Loan Trust 2006-OC4 Series 2006-OC4 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 021455AB6 AAA AAA/Watch Neg 2-A-2B 021455AD2 AAA AAA/Watch Neg Alternative Loan Trust 2006-OC7 Series 2006-OC7 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 23243VAB6 AAA AAA/Watch Neg Impac Secured Assets Trust 2006-2 Series 2006-2 Rating Class CUSIP To From ----- ----- -- ---- 1-A2-A 45256VAC1 AAA AAA/Watch Neg Ownit Mortgage Loan Asset-Backed Certificates, Series 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- AV 69121PDB6 AAA AAA/Watch Neg AF-1 69121PCG6 AAA AAA/Watch Neg AF-2 69121PCH4 AAA AAA/Watch Neg AF-3 69121PCJ0 AAA AAA/Watch Neg AF-4 69121PCK7 AAA AAA/Watch Neg M-1 69121PCL5 AA+ AA+/Watch Neg RATINGS AFFIRMED Alternative Loan Trust 2006-OC1 Series 2006-OC1 Class CUSIP Rating ----- ----- ------ 1-A-1 12668BJD6 AAA 2-A-3A 12668BJU8 AAA Alternative Loan Trust 2006-OC4 Series 2006-OC4 Class CUSIP Rating ----- ----- ------ 2-A-2A 021455AC4 AAA M-5 021455AK6 CCC Alternative Loan Trust 2006-OC7 Series 2006-OC7 Class CUSIP Rating ----- ----- ------ 2-A-2A 23243VAC4 AAA Alternative Loan Trust 2007-9T1 Series 2007-9T1 Class CUSIP Rating ----- ----- ------ 1-A-2 02150JAB8 AAA Alternative Loan Trust 2007-OA6 Series 2007-OA6 Class CUSIP Rating ----- ----- ------ A-1A 02150PAA6 AAA A-1B 02150PAB4 AAA A-2 02150PAC2 AAA Impac Secured Assets Trust 2006-2 Series 2006-2 Class CUSIP Rating ----- ----- ------ 1-A1-1 45256VAA5 AAA 1-M-1 45256VAF4 B 2-A-1 45256VAQ0 AAA IndyMac INDX Mortgage Loan Trust 2006-AR21 Series 2006-AR21 Class CUSIP Rating ----- ----- ------ A-1 45660HAA6 AAA M-4 45660HAG3 CCC Morgan Stanley Mortgage Loan Trust 2006-13ARX Series 2006-13ARX Class CUSIP Rating ----- ----- ------ A-1 61750PAA6 AAA Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2006-AR2 Series 2006-AR2 Class CUSIP Rating ----- ----- ------ III-M-2 65535VUV8 CCC * S&P Cuts 334 Ratings from 46 U.S. Subprime RMBS Deals ------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 334 classes from 46 residential mortgage-backed securities (RMBS) transactions backed by U.S. subprime mortgage loan collateral issued in 2006 and 2007. "At the same time, we removed 259 of the lowered ratings from CreditWatch with negative implications. In addition, we affirmed our ratings on 295 classes from the same 46 RMBS transactions and removed 91 of these ratings from CreditWatch negative," S&P says. The downgrades reflect our opinion that projected credit support for the affected classes is insufficient to maintain the previous ratings, given our current projected losses. As S&P stated in "S&P Revises Deal-Specific Projected Losses For U.S. Subprime RMBS Issued In 2006, 2007," published Aug. 19, 2008, S&P's default curve for U.S. subprime RMBS is a key component of our loss projection analysis of U.S. RMBS transactions, which is discussed in "Standard & Poor's Revised Default And Loss Curves For U.S. Subprime RMBS," published Oct. 19, 2007. With the recent continued deterioration in U.S. RMBS performance, however, S&P is adjusting its loss curve forecasting methodology to more explicitly incorporate each transaction's current delinquency (including 60- and 90-day delinquencies), default, and loss trends. Some transactions are experiencing foreclosures and delinquencies at rates greater than our initial projections. S&P believes that adjusting its projected losses, which it derived from its default curve analysis, is appropriate in cases where the amount of current delinquencies indicates a different timing or level of loss. In addition, S&P recently revised its loss severity assumption for transactions issued in 2006 and the first half of 2007 as described in "Standard & Poor's Revises U.S. Subprime, Prime, And Alternative-A RMBS Loss Assumptions," published July 30, 2008. S&P based the revised assumption on our belief that continued foreclosures, distressed sales, increased carrying costs, and a further decline in home sales will continue to depress prices and push loss severities higher than S&P previously assumed. "The lowered ratings reflect our assessment of credit support under three constant prepayment rate (CPR) scenarios. The first scenario utilizes the lower of the lifetime or 12-month CPR, while the second utilizes a 6% CPR, which is very slow by historical standards. The third scenario uses a prepayment rate that is equal to two times the lower of the lifetime or 12-month CPR. We incorporated a third CPR scenario into our cash flow analysis to account for potential increases in prepayments, which may occur from normal increases typically found in the seasoning of pools combined with a chance that governmental proposals, if adopted, may lead to increased CPRs. We assumed a constant default rate for each pool. Because the analysis focused on each individual class with varying maturities, prepayment scenarios may cause an individual class or the transaction itself to prepay in full before it incurs the entire loss projection. Slower prepayment assumptions lengthen the average life of the mortgage pool, which increases the likelihood that total projected losses will be realized. The longer a class remains outstanding, however, the more excess spread it generates," S&P says. "To assess the creditworthiness of each class, we reviewed the individual delinquency and loss trends of each transaction for changes, if any, in risk characteristics, servicing, and the ability to withstand additional credit deterioration. For mortgage pools that are continuing to show increasing delinquencies, we increased our cash flow stresses to account for potential increases in monthly losses. In order to maintain a rating higher than 'B', a class had to absorb losses in excess of the base case assumption we assumed in our analysis. For example, a class may have to withstand 115% of our base case loss assumption in order to maintain a 'BB' rating, while a different class may have to withstand 125% of our base case loss assumption to maintain a 'BBB' rating. Each class that has an affirmed 'AAA' rating can withstand approximately 150% of our base case loss assumptions under our analysis, subject to individual caps assumed on specific transactions. We determined the caps by limiting the amount of remaining defaults to 90% of the current pool balances. "A combination of subordination, excess spread, and overcollateralization provide credit support for the affected transactions. The underlying collateral for these deals consists of fixed- and adjustable-rate U.S. subprime mortgage loans that are secured by first and second liens on one- to four-family residential properties. "To date, including the classes listed below and actions on both publicly and confidentially rated classes, we have resolved the CreditWatch placements of the ratings on 368 classes from 46 U.S. RMBS subprime transactions from the 2006 and 2007 vintages. Currently, our ratings on 2,914 classes from 470 U.S. RMBS subprime transactions from the 2005, 2006, and 2007 vintages are on CreditWatch negative. "Standard & Poor's will continue to monitor the RMBS transactions it rates and take rating actions, including CreditWatch placements, when appropriate." RATINGS LOWERED ACE Securities Corp Home Equity Loan Trust Series 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- M-6 00443LAL2 CC CCC M-7 00443LAM0 CC CCC M-8 00443LAN8 CC CCC Ace Securities Corp. Home Equity Loan Trust, Series 2006-ASAP1 Series 2006-ASAP1 Rating Class CUSIP To From ----- ----- -- ---- M-8 004421WE9 CC CCC M-9 004421WF6 CC CCC M-10 004421WG4 CC CCC Ace Securities Corp. Home Equity Loan Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- M-2 00442GAG5 CC CCC M-3 00442GAH3 CC CCC M-4 00442GAJ9 CC CCC M-9 00442GAP5 D CC ACE Securities Corp. Home Equity Loan Trust, Series 2007-WM1 Series 2007-WM1 Rating Class CUSIP To From ----- ----- -- ---- M-5 004424AK3 CC CCC M-6 004424AL1 CC CCC M-7 004424AM9 CC CCC BNC Mortgage Loan Trust 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- B1 05568QAS4 CC CCC CWABS Asset Backed Certificates Trust 2007-9 Series 2007-9 Rating Class CUSIP To From ----- ----- -- ---- B 12670FAQ3 CC CCC CWABS Asset-Backed Certificates Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- M-9 23245CAP5 CC CCC B 23245CAT7 CC CCC CWABS Asset-Backed Certificates Trust 2007-BC3 Series 2007-BC3 Rating Class CUSIP To From ----- ----- -- ---- M-9 23246LAP4 CC CCC B 23246LAT6 CC CCC First Franklin Mortgage Loan Trust, Series 2007-FF1 Series 2007-FF1 Rating Class CUSIP To From ----- ----- -- ---- B-2 32028TAN7 CC CCC B-3 32028TAS6 CC CCC GSAMP Trust 2007-FM1 Series 2007-FM1 Rating Class CUSIP To From ----- ----- -- ---- M-9 3622MAAP6 CC CCC B-1 3622MAAU5 CC CCC B-2 3622MAAV3 CC CCC GSAMP Trust 2007-FM2 Series 2007-FM2 Rating Class CUSIP To From ----- ----- -- ---- B-2 3622MHAV8 CC CCC GSAMP Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- M-8 3622MGAN8 CC CCC M-9 3622MGAP3 CC CCC B-1 3622MGAT5 CC CCC Home Equity Asset Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- M-5 43710LAK0 CC CCC M-6 43710LAL8 CC CCC M-7 43710LAM6 CC CCC M-8 43710LAN4 CC CCC HSI Asset Securitization Corporation Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- M-9 40430TAN2 CC CCC M-10 40430TAP7 CC CCC HSI Asset Securitization Corporation Trust 2007-OPT1 Series 2007-OPT1 Rating Class CUSIP To From ----- ----- -- ---- M-9 40431JAP8 CC CCC IXIS Real Estate Capital Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- M5 45073DAJ7 CC CCC B4 45073DAP3 D CC JPMorgan Mortgage Acquisition Corp. 2006-FRE1 Series 2006-FRE1 Rating Class CUSIP To From ----- ----- -- ---- M-8 46626LFV7 CC CCC Long Beach Mortgage Loan Trust 2006-WL3 Series 2006-WL3 Rating Class CUSIP To From ----- ----- -- ---- M-5 542514TB0 CC CCC M-6 542514TC8 CC CCC Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- B3 59024VAW9 CC CCC Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-4 Series 2007-4 Rating Class CUSIP To From ----- ----- -- ---- B2 59025CAR1 CC CCC Merrill Lynch Mortgage Investors Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- B-3 590238AR2 CC CCC Morgan Stanley ABS Capital I Inc. Trust 2006-WMC1 Series 2006-WMC1 Rating Class CUSIP To From ----- ----- -- ---- B-1 61744CXU5 CC CCC B-2 61744CXV3 CC CCC B-3 61744CXW1 CC CCC Morgan Stanley ABS Capital I Inc. Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- B-2 617526AP3 CC CCC B-3 617526AQ1 CC CCC Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- B-2 617505AN2 CC CCC B-3 617505AP7 CC CCC Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM1 Series 2006-FM1 Rating Class CUSIP To From ----- ----- -- ---- M-7 65536HCE6 CC CCC M-8 65536HCF3 CC CCC M-9 65536HCG1 CC CCC B-1 65536HCH9 CC CCC Option One Mortgage Loan Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- M-8 68400DAP9 CC CCC Securitized Asset Backed Receivables LLC Trust 2007-BR2 Series 2007-BR2 Rating Class CUSIP To From ----- ----- -- ---- B-2 81378PAK4 CC CCC Securitized Asset Backed Receivables LLC Trust 2007-BR3 Series 2007-BR3 Rating Class CUSIP To From ----- ----- -- ---- B-2 81377NAL8 CC CCC B-3 81377NAM6 CC CCC Securitized Asset Backed Receivables LLC Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- M-4 81377JAJ2 CC CCC M-5 81377JAK9 CC CCC M-6 81377JAL7 CC CCC B-3 81377JAP8 D CC Securitized Asset Backed Receivables LLC Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- M-6 81378AAK7 CC CCC B-1 81378AAL5 CC CCC B-2 81378AAM3 CC CCC B-3 81378AAN1 CC CCC Soundview Home Loan Trust 2007-WMC1 Series 2007-WMC1 Rating Class CUSIP To From ----- ----- -- ---- M-5 83612NAL9 CC CCC Structured Asset Investment Loan Trust 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- M4 86358EB54 CC CCC M5 86358EB62 CC CCC WaMu Asset-Backed Certificates WaMu Series 2007-HE1 Trust Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- M-6 933631AL7 CC CCC M-7 933631AM5 CC CCC M-8 933631AN3 CC CCC WaMu Asset-Backed Certificates WaMu Series 2007-HE4 Trust Series 2007-HE4 Rating Class CUSIP To From ----- ----- -- ---- B 93363XAT0 CC CCC Washington Mutual Asset-Backed Certificates WMABS Series 2007-HE1 Trust Series WMABS 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- M-7 93935KAL4 CC CCC M-8 93935KAM2 CC CCC RATINGS LOWERED AND REMOVED FROM CREDITWATCH NEGATIVE ACE Securities Corp Home Equity Loan Trust Series 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-1 00443LAA6 A AA/Watch Neg A-2C 00443LAD0 AA AAA/Watch Neg A-2D 00443LAE8 A AA/Watch Neg M-1 00443LAF5 B BB/Watch Neg M-2 00443LAG3 CCC B+/Watch Neg M-3 00443LAH1 CCC B/Watch Neg M-4 00443LAJ7 CCC B-/Watch Neg Ace Securities Corp. Home Equity Loan Trust, Series 2006-ASAP1 Series 2006-ASAP1 Rating Class CUSIP To From ----- ----- -- ---- M-1 004421VX8 AA AAA/Watch Neg M-2 004421VY6 BBB AAA/Watch Neg M-3 004421VZ3 B AA+/Watch Neg M-4 004421WA7 B- AA+/Watch Neg M-5 004421WB5 CCC BBB/Watch Neg M-6 004421WC3 CCC B/Watch Neg Ace Securities Corp. Home Equity Loan Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- A-1 00442GAA8 CCC B/Watch Neg A-2A 00442GAB6 A AA+/Watch Neg A-2C 00442GAD2 CCC B/Watch Neg A-2D 00442GAE0 CCC B/Watch Neg ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE5 Series 2007-HE5 Rating Class CUSIP To From ----- ----- -- ---- A-2C 000797AD2 BBB A/Watch Neg M-1 000797AF7 B B+/Watch Neg M-2 000797AG5 CCC B/Watch Neg M-3 000797AH3 CCC B-/Watch Neg ACE Securities Corp. Home Equity Loan Trust, Series 2007-WM1 Series 2007-WM1 Rating Class CUSIP To From ----- ----- -- ---- A-1 004424AA5 B A/Watch Neg A-2B 004424AC1 A AAA/Watch Neg A-2C 004424AD9 BB AAA/Watch Neg A-2D 004424AE7 B BBB/Watch Neg M-1 004424AF4 CCC B/Watch Neg BNC Mortgage Loan Trust 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- A1 05568QAA3 BBB AAA/Watch Neg A4 05568QAD7 A AAA/Watch Neg A5 05568QAE5 BBB AAA/Watch Neg M1 05568QAF2 B BBB/Watch Neg M2 05568QAG0 B- B/Watch Neg M3 05568QAH8 CCC B-/Watch Neg Citigroup Mortgage Loan Trust 2007-AHL3 Series 2007-AHL3 Rating Class CUSIP To From ----- ----- -- ---- A-1 17312GAS0 BBB AAA/Watch Neg A-2 17312GAT8 BBB AAA/Watch Neg A-3B 17312GAB7 A AAA/Watch Neg A-3C 17312GAC5 BBB AAA/Watch Neg M-1 17312GAD3 BB AA/Watch Neg M-2 17312GAE1 B- BBB/Watch Neg M-3 17312GAF8 CCC BB/Watch Neg M-4 17312GAG6 CCC B/Watch Neg Citigroup Mortgage Loan Trust 2007-AMC4 Series 2007-AMC4 Rating Class CUSIP To From ----- ----- -- ---- A-1 17313BAA9 A AAA/Watch Neg A-2C 17313BAD3 AA AAA/Watch Neg A-2D 17313BAE1 A AAA/Watch Neg M-1 17313BAF8 BB AA+/Watch Neg M-2 17313BAG6 B BBB/Watch Neg M-3 17313BAH4 B- B/Watch Neg CWABS Asset Backed Certificates Trust 2007-10 Series 2007-10 Rating Class CUSIP To From ----- ----- -- ---- 1-A-1 23246BAE1 AA AAA/Watch Neg 1-A-2 23246BAF8 AA AAA/Watch Neg 2-A-4 23246BAK7 AA AAA/Watch Neg 1-M-1 23246BAL5 A AA+/Watch Neg 2-M-1 23246BAM3 A AA+/Watch Neg 1-M-2 23246BAN1 BB AA/Watch Neg 2-M-2 23246BAP6 BB AA/Watch Neg CWABS Asset Backed Certificates Trust 2007-9 Series 2007-9 Rating Class CUSIP To From ----- ----- -- ---- 1-A-1 12670FAA8 A AAA/Watch Neg 2-A-3 12670FAD2 AA AAA/Watch Neg 2-A-4 12670FAE0 A AAA/Watch Neg M-1 12670FAF7 BB AA+/Watch Neg M-2 12670FAG5 B AA/Watch Neg M-3 12670FAH3 CCC B/Watch Neg CWABS Asset-Backed Certificates Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- 1-A 23245CAA8 BB AAA/Watch Neg 2-A-3 23245CAD2 BBB AAA/Watch Neg 2-A-4 23245CAE0 BB AAA/Watch Neg M-1 23245CAF7 B AA+/Watch Neg M-2 23245CAG5 CCC A/Watch Neg M-3 23245CAH3 CCC B/Watch Neg CWABS Asset-Backed Certificates Trust 2007-BC3 Series 2007-BC3 Rating Class CUSIP To From ----- ----- -- ---- 1-A 23246LAA7 BB AAA/Watch Neg 2-A-3 23246LAD1 BBB AAA/Watch Neg 2-A-4 23246LAE9 BB AAA/Watch Neg M-1 23246LAF6 B AA+/Watch Neg M-2 23246LAG4 CCC AA/Watch Neg M-3 23246LAH2 CCC B/Watch Neg First Franklin Mortgage Loan Trust, Series 2007-FF1 Series 2007-FF1 Rating Class CUSIP To From ----- ----- -- ---- A-1 32028TAA5 B A/Watch Neg A-2B 32028TAC1 AA AAA/Watch Neg A-2C 32028TAD9 B+ AA/Watch Neg A-2D 32028TAE7 B A/Watch Neg M-1 32028TAF4 B- BB/Watch Neg M-2 32028TAG2 CCC B/Watch Neg M-3 32028TAH0 CCC B/Watch Neg GSAMP Trust 2007-FM1 Series 2007-FM1 Rating Class CUSIP To From ----- ----- -- ---- A-1 3622MAAA9 A AAA/Watch Neg A-2C 3622MAAD3 A AAA/Watch Neg A-2D 3622MAAE1 BBB AAA/Watch Neg M-1 3622MAAF8 B A/Watch Neg M-2 3622MAAG6 CCC BB/Watch Neg M-3 3622MAAH4 CCC B/Watch Neg GSAMP Trust 2007-FM2 Series 2007-FM2 Rating Class CUSIP To From ----- ----- -- ---- A-1 3622MHAA4 AA AAA/Watch Neg A-2C 3622MHAD8 AA AAA/Watch Neg A-2D 3622MHAE6 A AAA/Watch Neg M-1 3622MHAF3 BBB AA+/Watch Neg M-2 3622MHAG1 B AA/Watch Neg GSAMP Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 3622MGAA6 AA AAA/Watch Neg A-2D 3622MGAE8 A AA/Watch Neg M-1 3622MGAF5 B BBB/Watch Neg M-2 3622MGAG3 CCC B/Watch Neg Home Equity Asset Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- 1-A-1 43710LAA2 B A/Watch Neg 2-A-3 43710LAD6 A AA/Watch Neg 2-A-4 43710LAE4 B A/Watch Neg M-1 43710LAF1 CCC BB/Watch Neg M-2 43710LAG9 CCC B/Watch Neg M-3 43710LAH7 CCC B-/Watch Neg Home equity Mortgage Loan Asset Backed Trust, Series INABS 2007-B Series 2007-B Rating Class CUSIP To From ----- ----- -- ---- 1A-1 43710EAA8 BB A/Watch Neg 1A-2 43710EAB6 BB A/Watch Neg 2A-3 43710EAE0 A AAA/Watch Neg 2A-4 43710EAF7 BB A/Watch Neg HSI Asset Securitization Corporation Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-3 40430TAC6 BBB A/Watch Neg A-4 40430TAD4 BB- BBB/Watch Neg M-1 40430TAE2 B BB/Watch Neg M-2 40430TAF9 CCC B+/Watch Neg M-3 40430TAG7 CCC B/Watch Neg M-4 40430TAH5 CCC B-/Watch Neg HSI Asset Securitization Corporation Trust 2007-OPT1 Series 2007-OPT1 Rating Class CUSIP To From ----- ----- -- ---- I-A 40431JAA1 A AAA/Watch Neg II-A-3 40431JAD5 A AAA/Watch Neg II-A-4 40431JAE3 BBB AAA/Watch Neg M-1 40431JAF0 B BBB/Watch Neg M-2 40431JAG8 CCC B/Watch Neg IXIS Real Estate Capital Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A2 45073DAB4 AA AAA/Watch Neg A3 45073DAC2 B A/Watch Neg A4 45073DAD0 CCC BB/Watch Neg M1 45073DAE8 CCC B/Watch Neg JPMorgan Mortgage Acquisition Corp. 2006-FRE1 Series 2006-FRE1 Rating Class CUSIP To From ----- ----- -- ---- M-1 46626LFN5 AA AA+/Watch Neg M-2 46626LFP0 A AA/Watch Neg M-3 46626LFQ8 BB AA-/Watch Neg JPMorgan Mortgage Acquisition Trust 2007-CH4 Series 2007-CH4 Rating Class CUSIP To From ----- ----- -- ---- A-1 46630CAA2 A AAA/Watch Neg A-4 46630CAD6 AA AAA/Watch Neg A-5 46630CAE4 A AAA/Watch Neg M-1 46630CAF1 BB A/Watch Neg M-2 46630CAG9 B BB/Watch Neg Long Beach Mortgage Loan Trust 2006-WL3 Series 2006-WL3 Rating Class CUSIP To From ----- ----- -- ---- I-A 542514SS4 AA AAA/Watch Neg II-A4 542514SW5 AA AAA/Watch Neg M-1 542514SX3 BB AA+/Watch Neg M-2 542514SY1 B AA-/Watch Neg M-3 542514SZ8 CCC BB/Watch Neg M-4 542514TA2 CCC B/Watch Neg Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- A-1C 59024VAC3 BB+ AAA/Watch Neg A-1D 59024VAD1 BB AAA/Watch Neg A-2C 59024VAG4 BB+ AAA/Watch Neg A-2D 59024VAH2 BB AAA/Watch Neg M-1-1 59024VAJ8 B AA+/Watch Neg M-1-2 59024VAK5 B AA+/Watch Neg M-2-1 59024VAL3 CCC AA-/Watch Neg M-2-2 59024VAM1 CCC AA-/Watch Neg Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-4 Series 2007-4 Rating Class CUSIP To From ----- ----- -- ---- 1-A 59025CAA8 B BBB/Watch Neg 2-A2 59025CAC4 AA AAA/Watch Neg 2-A3 59025CAD2 B A+/Watch Neg 2-A4 59025CAE0 B BBB/Watch Neg 1-M1 59025CAF7 CCC BB/Watch Neg 2-M1 59025CAG5 CCC BB/Watch Neg 1-M2 59025CAH3 CCC B+/Watch Neg 2-M2 59025CAJ9 CCC B+/Watch Neg 1-M3 59025CAK6 CCC B/Watch Neg 2-M3 59025CAL4 CCC B/Watch Neg Merrill Lynch Mortgage Investors Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- A-3 590238AC5 BB AAA/Watch Neg A-4 590238AD3 B AAA/Watch Neg M-1 590238AE1 CCC BBB/Watch Neg M-2 590238AF8 CCC B/Watch Neg M-3 590238AG6 CCC B/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2006-WMC1 Series 2006-WMC1 Rating Class CUSIP To From ----- ----- -- ---- M-1 61744CXN1 AA AA+/Watch Neg M-2 61744CXP6 BBB AA+/Watch Neg M-3 61744CXQ4 B BB/Watch Neg M-4 61744CXR2 CCC B/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-1 617526AA6 BBB AAA/Watch Neg A-2c 617526AE8 A AAA/Watch Neg A-2d 617526AF5 BB AAA/Watch Neg M-1 617526AG3 B A/Watch Neg M-2 617526AH1 CCC B/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 617505AA0 BBB AAA/Watch Neg A-2c 617505AD4 AA AAA/Watch Neg A-2d 617505AE2 BBB AAA/Watch Neg M-1 617505AF9 B BBB/Watch Neg Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM1 Series 2006-FM1 Rating Class CUSIP To From ----- ----- -- ---- M-1 65536HBY3 A AA+/Watch Neg M-2 65536HBZ0 BB AA+/Watch Neg M-3 65536HCA4 B AA/Watch Neg M-4 65536HCB2 CCC BBB/Watch Neg M-5 65536HCC0 CCC B/Watch Neg NovaStar Mortgage Funding Trust, Series 2007-2 Series 2007-2 Rating Class CUSIP To From ----- ----- -- ---- A-1A 66989EAA3 BBB AAA/Watch Neg A-2C 66989EAD7 A+ AAA/Watch Neg A-2D 66989EAE5 BBB AAA/Watch Neg M-1 66989EAF2 B AA+/Watch Neg M-2 66989EAG0 CCC AA/Watch Neg Option One Mortgage Loan Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- I-A-1 68400DAA2 BBB AA/Watch Neg I-A-2 68400DAB0 BBB AA/Watch Neg II-A-2 68400DAD6 AA AAA/Watch Neg II-A-3 68400DAE4 BBB AAA/Watch Neg II-A-4 68400DAF1 BB AA/Watch Neg M-1 68400DAG9 B B+/Watch Neg M-2 68400DAH7 CCC B/Watch Neg Option One Mortgage Loan Trust 2007-CP1 Series 2007-CP1 Rating Class CUSIP To From ----- ----- -- ---- I-A-1 68402YAA4 AA AAA/Watch Neg II-A-2 68402YAC0 AA AAA/Watch Neg II-A-3 68402YAD8 A AAA/Watch Neg M-1 68402YAE6 BB BBB/Watch Neg M-2 68402YAF3 CCC BB/Watch Neg M-3 68402YAG1 CCC B/Watch Neg Renaissance Home Equity Loan Trust 2007-2 Series 2007-2 Rating Class CUSIP To From ----- ----- -- ---- AV-2 75970QAB6 A+ AAA/Watch Neg AV-3 75970QAC4 BBB AAA/Watch Neg AF-3 75970QAF7 AA AAA/Watch Neg AF-4 75970QAG5 A AAA/Watch Neg AF-5 75970QAH3 BBB AAA/Watch Neg AF-6 75970QAJ9 BBB AAA/Watch Neg M-1 75970QAK6 B A/Watch Neg M-2 75970QAL4 B- BBB/Watch Neg M-3 75970QAM2 CCC BB/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-BR2 Series 2007-BR2 Rating Class CUSIP To From ----- ----- -- ---- A-1 81378PAA6 B BBB/Watch Neg A-2 81378PAB4 B BBB/Watch Neg M-1 81378PAC2 CCC B+/Watch Neg M-2 81378PAD0 CCC B/Watch Neg M-3 81378PAE8 CCC B-/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-BR3 Series 2007-BR3 Rating Class CUSIP To From ----- ----- -- ---- A-1 81377NAN4 A AA/Watch Neg A-2B 81377NAB0 A AA/Watch Neg A-2C 81377NAC8 A AA/Watch Neg M-1 81377NAD6 B- BB/Watch Neg M-2 81377NAE4 CCC B+/Watch Neg M-3 81377NAF1 CCC B/Watch Neg M-4 81377NAG9 CCC B-/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-BR4 Series 2007-BR4 Rating Class CUSIP To From ----- ----- -- ---- A-1 81378EAN3 BBB AA/Watch Neg A-2B 81378EAB9 BBB AA/Watch Neg A-2C 81378EAC7 B AA/Watch Neg M-1 81378EAD5 B- BB/Watch Neg M-2 81378EAE3 CCC B/Watch Neg M-3 81378EAF0 CCC B-/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-1 81377JAA1 B A/Watch Neg A-2B 81377JAC7 AA AA+/Watch Neg A-2C 81377JAD5 BB AA/Watch Neg A-2D 81377JAE3 B BBB/Watch Neg M-1 81377JAF0 CCC B/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 81378AAA9 A AAA/Watch Neg A-2B 81378AAC5 A AAA/Watch Neg A-2C 81378AAD3 BBB AAA/Watch Neg M-1 81378AAE1 B A/Watch Neg M-2 81378AAF8 CCC B/Watch Neg SG Mortgage Securities Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 78420RAA6 A AA/Watch Neg A-2 78420RAB4 A AA/Watch Neg M-2 78420RAD0 B B+/Watch Neg M-3 78420RAE8 CCC B/Watch Neg M-4 78420RAF5 CCC B-/Watch Neg Soundview Home Loan Trust 2007-WMC1 Series 2007-WMC1 Rating Class CUSIP To From ----- ----- -- ---- I-A-1 83612NAA3 CCC BB/Watch Neg II-A-1 83612NAB1 CCC BB/Watch Neg III-A-1 83612NAC9 A AA-/Watch Neg III-A-2 83612NAD7 B AA-/Watch Neg III-A-3 83612NAE5 CCC BB/Watch Neg III-A-4 83612NAF2 CCC BB/Watch Neg Structured Asset Investment Loan Trust 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- A3 86358EA89 A AAA/Watch Neg A4 86358EA97 BBB AAA/Watch Neg M1 86358EB21 B BBB/Watch Neg M2 86358EB39 CCC B/Watch Neg WaMu Asset-Backed Certificates WaMu Series 2007-HE1 Trust Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- I-A 933631AA1 BB BBB/Watch Neg II-A2 933631AC7 AA AAA/Watch Neg II-A3 933631AD5 BB+ A/Watch Neg II-A4 933631AE3 BB BBB/Watch Neg M-1 933631AF0 B BB/Watch Neg M-2 933631AG8 CCC B/Watch Neg WaMu Asset-Backed Certificates WaMu Series 2007-HE4 Trust Series 2007-HE4 Rating Class CUSIP To From ----- ----- -- ---- I-A 93363XAA1 BB AAA/Watch Neg II-A3 93363XAD5 BBB AAA/Watch Neg II-A4 93363XAE3 BB AAA/Watch Neg M-1 93363XAF0 B AA/Watch Neg M-2 93363XAG8 B- BBB/Watch Neg Washington Mutual Asset-Backed Certificates WMABS Series 2007-HE1 Trust Series WMABS 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- I-A 93935KAA8 BB+ AA/Watch Neg II-A-2 93935KAC4 BB+ AA/Watch Neg II-A-3 93935KAD2 BB AA/Watch Neg M-1 93935KAE0 B- B/Watch Neg M-2 93935KAF7 CCC B-/Watch Neg RATINGS AFFIRMED AND REMOVED FROM CREDITWATCH NEGATIVE ACE Securities Corp Home Equity Loan Trust Series 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 00443LAB4 AAA AAA/Watch Neg A-2B 00443LAC2 AAA AAA/Watch Neg Ace Securities Corp. Home Equity Loan Trust, Series 2006-ASAP1 Series 2006-ASAP1 Rating Class CUSIP To From ----- ----- -- ---- A-1 004421VS9 AAA AAA/Watch Neg A-2B 004421VU4 AAA AAA/Watch Neg A-2C 004421VV2 AAA AAA/Watch Neg A-2D 004421VW0 AAA AAA/Watch Neg Ace Securities Corp. Home Equity Loan Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- A-2B 00442GAC4 B B/Watch Neg ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE5 Series 2007-HE5 Rating Class CUSIP To From ----- ----- -- ---- A-1 000797AA8 BB BB/Watch Neg A-2A 000797AB6 AAA AAA/Watch Neg A-2B 000797AC4 AAA AAA/Watch Neg A-2D 000797AE0 BB BB/Watch Neg ACE Securities Corp. Home Equity Loan Trust, Series 2007-WM1 Series 2007-WM1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 004424AB3 AAA AAA/Watch Neg BNC Mortgage Loan Trust 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- A2 05568QAB1 AAA AAA/Watch Neg A3 05568QAC9 AAA AAA/Watch Neg Citigroup Mortgage Loan Trust 2007-AHL3 Series 2007-AHL3 Rating Class CUSIP To From ----- ----- -- ---- A-3A 17312GAA9 AAA AAA/Watch Neg Citigroup Mortgage Loan Trust 2007-AMC4 Series 2007-AMC4 Rating Class CUSIP To From ----- ----- -- ---- A-2A 17313BAB7 AAA AAA/Watch Neg A-2B 17313BAC5 AAA AAA/Watch Neg CWABS Asset Backed Certificates Trust 2007-10 Series 2007-10 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 23246BAG6 AAA AAA/Watch Neg 2-A-2 23246BAH4 AAA AAA/Watch Neg 2-A-3 23246BAJ0 AAA AAA/Watch Neg 1-M-3 23246BAQ4 B B/Watch Neg 2-M-3 23246BAR2 B B/Watch Neg CWABS Asset Backed Certificates Trust 2007-9 Series 2007-9 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 12670FAB6 AAA AAA/Watch Neg 2-A-2 12670FAC4 AAA AAA/Watch Neg CWABS Asset-Backed Certificates Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 23245CAB6 AAA AAA/Watch Neg 2-A-2 23245CAC4 AAA AAA/Watch Neg CWABS Asset-Backed Certificates Trust 2007-BC3 Series 2007-BC3 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 23246LAB5 AAA AAA/Watch Neg 2-A-2 23246LAC3 AAA AAA/Watch Neg First Franklin Mortgage Loan Trust, Series 2007-FF1 Series 2007-FF1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 32028TAB3 AAA AAA/Watch Neg GSAMP Trust 2007-FM1 Series 2007-FM1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 3622MAAB7 AAA AAA/Watch Neg A-2B 3622MAAC5 AAA AAA/Watch Neg GSAMP Trust 2007-FM2 Series 2007-FM2 Rating Class CUSIP To From ----- ----- -- ---- A-2A 3622MHAB2 AAA AAA/Watch Neg A-2B 3622MHAC0 AAA AAA/Watch Neg GSAMP Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 3622MGAB4 AAA AAA/Watch Neg A-2B 3622MGAC2 AAA AAA/Watch Neg A-2C 3622MGAD0 AA AA/Watch Neg Home Equity Asset Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- 2-A-1 43710LAB0 AAA AAA/Watch Neg 2-A-2 43710LAC8 AAA AAA/Watch Neg P 43710LAT1 AAA AAA/Watch Neg Home equity Mortgage Loan Asset Backed Trust, Series INABS 2007-B Series 2007-B Rating Class CUSIP To From ----- ----- -- ---- 2A-1 43710EAC4 AAA AAA/Watch Neg 2A-2 43710EAD2 AAA AAA/Watch Neg M-1 43710EAG5 B B/Watch Neg HSI Asset Securitization Corporation Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 40430TAA0 AAA AAA/Watch Neg A-2 40430TAB8 AAA AAA/Watch Neg HSI Asset Securitization Corporation Trust 2007-OPT1 Series 2007-OPT1 Rating Class CUSIP To From ----- ----- -- ---- II-A-1 40431JAB9 AAA AAA/Watch Neg II-A-2 40431JAC7 AAA AAA/Watch Neg IXIS Real Estate Capital Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A1 45073DAA6 AAA AAA/Watch Neg JPMorgan Mortgage Acquisition Corp. 2006-FRE1 Series 2006-FRE1 Rating Class CUSIP To From ----- ----- -- ---- A-1 46626LFX3 AAA AAA/Watch Neg A-3 46626LFL9 AAA AAA/Watch Neg A-4 46626LFM7 AAA AAA/Watch Neg JPMorgan Mortgage Acquisition Trust 2007-CH4 Series 2007-CH4 Rating Class CUSIP To From ----- ----- -- ---- A-2 46630CAB0 AAA AAA/Watch Neg A-3 46630CAC8 AAA AAA/Watch Neg Long Beach Mortgage Loan Trust 2006-WL3 Series 2006-WL3 Rating Class CUSIP To From ----- ----- -- ---- II-A2 542514SU9 AAA AAA/Watch Neg II-A3 542514SV7 AAA AAA/Watch Neg Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-3 Series 2007-3 Rating Class CUSIP To From ----- ----- -- ---- A-1A 59024VAA7 AAA AAA/Watch Neg A-1B 59024VAB5 AAA AAA/Watch Neg A-2A 59024VAE9 AAA AAA/Watch Neg A-2B 59024VAF6 AAA AAA/Watch Neg Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-4 Series 2007-4 Rating Class CUSIP To From ----- ----- -- ---- 2-A1 59025CAB6 AAA AAA/Watch Neg Merrill Lynch Mortgage Investors Trust, Series 2007-HE3 Series 2007-HE3 Rating Class CUSIP To From ----- ----- -- ---- A-1 590238AA9 AAA AAA/Watch Neg A-2 590238AB7 AAA AAA/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2006-WMC1 Series 2006-WMC1 Rating Class CUSIP To From ----- ----- -- ---- A-1 61744CXJ0 AAA AAA/Watch Neg A-2b 61744CXL5 AAA AAA/Watch Neg A-2c 61744CXM3 AAA AAA/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-2fpt 617526AB4 AAA AAA/Watch Neg A-2a 617526AC2 AAA AAA/Watch Neg A-2b 617526AD0 AAA AAA/Watch Neg Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-2a 617505AB8 AAA AAA/Watch Neg A-2b 617505AC6 AAA AAA/Watch Neg Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM1 Series 2006-FM1 Rating Class CUSIP To From ----- ----- -- ---- I-A 65536HBT4 AAA AAA/Watch Neg II-A-1 65536HBU1 AAA AAA/Watch Neg II-A-2 65536HBV9 AAA AAA/Watch Neg II-A-3 65536HBW7 AAA AAA/Watch Neg II-A-4 65536HBX5 AAA AAA/Watch Neg NovaStar Mortgage Funding Trust, Series 2007-2 Series 2007-2 Rating Class CUSIP To From ----- ----- -- ---- A-2A 66989EAB1 AAA AAA/Watch Neg A-2B 66989EAC9 AAA AAA/Watch Neg Option One Mortgage Loan Trust 2007-1 Series 2007-1 Rating Class CUSIP To From ----- ----- -- ---- II-A-1 68400DAC8 AAA AAA/Watch Neg Option One Mortgage Loan Trust 2007-CP1 Series 2007-CP1 Rating Class CUSIP To From ----- ----- -- ---- II-A-1 68402YAB2 AAA AAA/Watch Neg Renaissance Home Equity Loan Trust 2007-2 Series 2007-2 Rating Class CUSIP To From ----- ----- -- ---- AV-1 75970QAA8 AAA AAA/Watch Neg AF-1 75970QAD2 AAA AAA/Watch Neg AF-2 75970QAE0 AAA AAA/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-BR3 Series 2007-BR3 Rating Class CUSIP To From ----- ----- -- ---- A-2A 81377NAA2 AAA AAA/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-BR4 Series 2007-BR4 Rating Class CUSIP To From ----- ----- -- ---- A-2A 81378EAA1 AAA AAA/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-HE1 Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 81377JAB9 AA+ AA+/Watch Neg Securitized Asset Backed Receivables LLC Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- A-2A 81378AAB7 AAA AAA/Watch Neg SG Mortgage Securities Trust 2007-NC1 Series 2007-NC1 Rating Class CUSIP To From ----- ----- -- ---- M-1 78420RAC2 BB BB/Watch Neg Structured Asset Investment Loan Trust 2006-1 Series 2006-1 Rating Class CUSIP To From ----- ----- -- ---- A2 86358EA71 AAA AAA/Watch Neg WaMu Asset-Backed Certificates WaMu Series 2007-HE1 Trust Series 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- II-A1 933631AB9 AAA AAA/Watch Neg WaMu Asset-Backed Certificates WaMu Series 2007-HE4 Trust Series 2007-HE4 Rating Class CUSIP To From ----- ----- -- ---- II-A1 93363XAB9 AAA AAA/Watch Neg II-A2 93363XAC7 AAA AAA/Watch Neg Washington Mutual Asset-Backed Certificates WMABS Series 2007-HE1 Trust Series WMABS 2007-HE1 Rating Class CUSIP To From ----- ----- -- ---- II-A-1 93935KAB6 AAA AAA/Watch Neg RATINGS AFFIRMED ACE Securities Corp Home Equity Loan Trust Series 2007-HE1 Series 2007-HE1 Class CUSIP Rating ----- ----- ------ M-5 00443LAK4 CCC Ace Securities Corp. Home Equity Loan Trust, Series 2006-ASAP1 Series 2006-ASAP1 Class CUSIP Rating ----- ----- ------ M-7 004421WD1 CCC Ace Securities Corp. Home Equity Loan Trust, Series 2007-HE3 Series 2007-HE3 Class CUSIP Rating ----- ----- ------ M-1 00442GAF7 CCC ACE Securities Corp. Home Equity Loan Trust, Series 2007-HE5 Series 2007-HE5 Class CUSIP Rating ----- ----- ------ M-4 000797AJ9 CCC M-5 000797AK6 CCC M-6 000797AL4 CCC M-7 000797AM2 CCC ACE Securities Corp. Home Equity Loan Trust, Series 2007-WM1 Series 2007-WM1 Class CUSIP Rating ----- ----- ------ M-2 004424AG2 CCC M-3 004424AH0 CCC M-4 004424AJ6 CCC BNC Mortgage Loan Trust 2007-3 Series 2007-3 Class CUSIP Rating ----- ----- ------ M4 05568QAJ4 CCC M5 05568QAK1 CCC M6 05568QAL9 CCC M7 05568QAM7 CCC M8 05568QAN5 CCC M9 05568QAP0 CCC Citigroup Mortgage Loan Trust 2007-AHL3 Series 2007-AHL3 Class CUSIP Rating ----- ----- ------ M-5 17312GAH4 CCC M-6 17312GAJ0 CCC M-7 17312GAK7 CCC M-8 17312GAL5 CCC M-9 17312GAM3 CCC M-10 17312GAU5 CCC Citigroup Mortgage Loan Trust 2007-AMC4 Series 2007-AMC4 Class CUSIP Rating ----- ----- ------ M-4 17313BAJ0 CCC M-5 17313BAK7 CCC M-6 17313BAL5 CCC M-7 17313BAM3 CCC M-8 17313BAN1 CCC M-9 17313BAP6 CCC M-10 17313BAQ4 CCC M-11 17313BAR2 CCC CWABS Asset Backed Certificates Trust 2007-10 Series 2007-10 Class CUSIP Rating ----- ----- ------ M4 23246BAS0 CCC M5 23246BAT8 CCC M6 23246BAU5 CCC M7 23246BAV3 CCC M8 23246BAW1 CCC M9 23246BAX9 CCC B 23246BAB7 CCC CWABS Asset Backed Certificates Trust 2007-9 Series 2007-9 Class CUSIP Rating ----- ----- ------ M-4 12670FAJ9 CCC M-5 12670FAK6 CCC M-6 12670FAL4 CCC M-7 12670FAM2 CCC M-8 12670FAN0 CCC M-9 12670FAP5 CCC CWABS Asset-Backed Certificates Trust 2007-1 Series 2007-1 Class CUSIP Rating ----- ----- ------ M-4 23245CAJ9 CCC M-5 23245CAK6 CCC M-6 23245CAL4 CCC M-7 23245CAM2 CCC M-8 23245CAN0 CCC CWABS Asset-Backed Certificates Trust 2007-BC3 Series 2007-BC3 Class CUSIP Rating ----- ----- ------ M-4 23246LAJ8 CCC M-5 23246LAK5 CCC M-6 23246LAL3 CCC M-7 23246LAM1 CCC M-8 23246LAN9 CCC First Franklin Mortgage Loan Trust, Series 2007-FF1 Series 2007-FF1 Class CUSIP Rating ----- ----- ------ M-4 32028TAJ6 CCC M-5 32028TAK3 CCC M-6 32028TAL1 CCC B-1 32028TAM9 CCC GSAMP Trust 2007-FM1 Series 2007-FM1 Class CUSIP Rating ----- ----- ------ M-4 3622MAAJ0 CCC M-5 3622MAAK7 CCC M-6 3622MAAL5 CCC M-7 3622MAAM3 CCC M-8 3622MAAN1 CCC GSAMP Trust 2007-FM2 Series 2007-FM2 Class CUSIP Rating ----- ----- ------ M-3 3622MHAH9 CCC M-4 3622MHAJ5 CCC M-5 3622MHAK2 CCC M-6 3622MHAL0 CCC M-7 3622MHAM8 CCC M-8P 3622MHAY2 CCC M-8D 3622MHAZ9 CCC M-9 3622MHAP1 CCC B-1 3622MHAU0 CCC GSAMP Trust 2007-NC1 Series 2007-NC1 Class CUSIP Rating ----- ----- ------ M-3 3622MGAH1 CCC M-4 3622MGAJ7 CCC M-5 3622MGAK4 CCC M-6 3622MGAL2 CCC M-7 3622MGAM0 CCC Home Equity Asset Trust 2007-1 Series 2007-1 Class CUSIP Rating ----- ----- ------ M-4 43710LAJ3 CCC Home equity Mortgage Loan Asset Backed Trust, Series INABS 2007-B Series 2007-B Class CUSIP Rating ----- ----- ------ M-2 43710EAH3 CCC M-3 43710EAJ9 CCC M-4 43710EAK6 CCC M-5 43710EAL4 CCC M-6 43710EAM2 CCC M-7 43710EAN0 CCC M-8 43710EAP5 CCC HSI Asset Securitization Corporation Trust 2007-NC1 Series 2007-NC1 Class CUSIP Rating ----- ----- ------ M-5 40430TAJ1 CCC M-6 40430TAK8 CCC M-7 40430TAL6 CCC M-8 40430TAM4 CCC HSI Asset Securitization Corporation Trust 2007-OPT1 Series 2007-OPT1 Class CUSIP Rating ----- ----- ------ M-3 40431JAH6 CCC M-4 40431JAJ2 CCC M-5 40431JAK9 CCC M-6 40431JAL7 CCC M-7 40431JAM5 CCC M-8 40431JAN3 CCC IXIS Real Estate Capital Trust 2007-HE1 Series 2007-HE1 Class CUSIP Rating ----- ----- ------ M2 45073DAF5 CCC M3 45073DAG3 CCC M4 45073DAH1 CCC JPMorgan Mortgage Acquisition Corp. 2006-FRE1 Series 2006-FRE1 Class CUSIP Rating ----- ----- ------ M-4 46626LFR6 CCC M-5 46626LFS4 CCC M-6 46626LFT2 CCC M-7 46626LFU9 CCC JPMorgan Mortgage Acquisition Trust 2007-CH4 Series 2007-CH4 Class CUSIP Rating ----- ----- ------ M-3 46630CAH7 CCC M-4 46630CAJ3 CCC M-5 46630CAK0 CCC M-6 46630CAL8 CCC M-7 46630CAM6 CCC M-8 46630CAN4 CCC M-9 46630CAP9 CCC M-10 46630CAQ7 CCC Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-3 Series 2007-3 Class CUSIP Rating ----- ----- ------ M-3-1 59024VAN9 CCC M-3-2 59024VAP4 CCC M-4-1 59024VAQ2 CCC M-4-2 59024VAR0 CCC M5 59024VAS8 CCC M6 59024VAT6 CCC B1 59024VAU3 CCC B2 59024VAV1 CCC Merrill Lynch First Franklin Mortgage Loan Trust, Series 2007-4 Series 2007-4 Class CUSIP Rating ----- ----- ------ M4 59025CAM2 CCC M5 59025CAN0 CCC M6 59025CAP5 CCC B1 59025CAQ3 CCC Merrill Lynch Mortgage Investors Trust, Series 2007-HE3 Series 2007-HE3 Class CUSIP Rating ----- ----- ------ M-4 590238AH4 CCC M-5 590238AJ0 CCC M-6 590238AK7 CCC B-1 590238AL5 CCC B-2 590238AM3 CCC Morgan Stanley ABS Capital I Inc. Trust 2006-WMC1 Series 2006-WMC1 Class CUSIP Rating ----- ----- ------ M-5 61744CXS0 CCC M-6 61744CXT8 CCC Morgan Stanley ABS Capital I Inc. Trust 2007-HE1 Series 2007-HE1 Class CUSIP Rating ----- ----- ------ M-3 617526AJ7 CCC M-4 617526AK4 CCC M-5 617526AL2 CCC M-6 617526AM0 CCC B-1 617526AN8 CCC Morgan Stanley ABS Capital I Inc. Trust 2007-NC1 Series 2007-NC1 Class CUSIP Rating ----- ----- ------ M-2 617505AG7 CCC M-3 617505AH5 CCC M-4 617505AJ1 CCC M-5 617505AK8 CCC M-6 617505AL6 CCC B-1 617505AM4 CCC Nomura Home Equity Loan, Inc., Home Equity Loan Trust, Series 2006-FM1 Series 2006-FM1 Class CUSIP Rating ----- ----- ------ M-6 65536HCD8 CCC NovaStar Mortgage Funding Trust, Series 2007-2 Series 2007-2 Class CUSIP Rating ----- ----- ------ M-3 66989EAH8 CCC M-4 66989EAJ4 CCC M-5 66989EAK1 CCC M-6 66989EAL9 CCC M-7 66989EAM7 CCC M-8 66989EAN5 CCC M-9 66989EAP0 CCC M-10 66989EAQ8 CCC Option One Mortgage Loan Trust 2007-1 Series 2007-1 Class CUSIP Rating ----- ----- ------ M-3 68400DAJ3 CCC M-4 68400DAK0 CCC M-5 68400DAL8 CCC M-6 68400DAM6 CCC M-7 68400DAN4 CCC Option One Mortgage Loan Trust 2007-CP1 Series 2007-CP1 Class CUSIP Rating ----- ----- ------ M-4 68402YAH9 CCC M-5 68402YAJ5 CCC M-6 68402YAK2 CCC M-7 68402YAL0 CCC Renaissance Home Equity Loan Trust 2007-2 Series 2007-2 Class CUSIP Rating ----- ----- ------ M-4 75970QAN0 CCC M-5 75970QAP5 CCC M-6 75970QAQ3 CCC M-7 75970QAR1 CCC M-8 75970QAS9 CCC M-9 75970QAT7 CCC Securitized Asset Backed Receivables LLC Trust 2007-BR2 Series 2007-BR2 Class CUSIP Rating ----- ----- ------ M-4 81378PAF5 CCC M-5 81378PAG3 CCC M-6 81378PAH1 CCC B-1 81378PAJ7 CCC Securitized Asset Backed Receivables LLC Trust 2007-BR3 Series 2007-BR3 Class CUSIP Rating ----- ----- ------ M-5 81377NAH7 CCC M-6 81377NAJ3 CCC B-1 81377NAK0 CCC Securitized Asset Backed Receivables LLC Trust 2007-BR4 Series 2007-BR4 Class CUSIP Rating ----- ----- ------ M-4 81378EAG8 CCC M-5 81378EAH6 CCC M-6 81378EAJ2 CCC B-1 81378EAK9 CCC B-2 81378EAL7 CCC Securitized Asset Backed Receivables LLC Trust 2007-HE1 Series 2007-HE1 Class CUSIP Rating ----- ----- ------ M-2 81377JAG8 CCC M-3 81377JAH6 CCC Securitized Asset Backed Receivables LLC Trust 2007-NC1 Series 2007-NC1 Class CUSIP Rating ----- ----- ------ M-3 81378AAG6 CCC M-4 81378AAH4 CCC M-5 81378AAJ0 CCC SG Mortgage Securities Trust 2007-NC1 Series 2007-NC1 Class CUSIP Rating ----- ----- ------ M-5 78420RAG3 CCC M-6 78420RAH1 CCC M-7 78420RAJ7 CCC M-8 78420RAK4 CCC M-9 78420RAL2 CCC Soundview Home Loan Trust 2007-WMC1 Series 2007-WMC1 Class CUSIP Rating ----- ----- ------ M-1 83612NAG0 CCC M-2 83612NAH8 CCC M-3 83612NAJ4 CCC M-4 83612NAK1 CCC Structured Asset Investment Loan Trust 2006-1 Series 2006-1 Class CUSIP Rating ----- ----- ------ M3 86358EB47 CCC WaMu Asset-Backed Certificates WaMu Series 2007-HE1 Trust Series 2007-HE1 Class CUSIP Rating ----- ----- ------ M-3 933631AH6 CCC M-4 933631AJ2 CCC M-5 933631AK9 CCC WaMu Asset-Backed Certificates WaMu Series 2007-HE4 Trust Series 2007-HE4 Class CUSIP Rating ----- ----- ------ M-3 93363XAH6 CCC M-4 93363XAJ2 CCC M-5 93363XAK9 CCC M-6 93363XAL7 CCC M-7 93363XAM5 CCC M-8 93363XAN3 CCC M-9 93363XAP8 CCC Washington Mutual Asset-Backed Certificates WMABS Series 2007-HE1 Trust Series WMABS 2007-HE1 Class CUSIP Rating ----- ----- ------ M-3 93935KAG5 CCC M-4 93935KAH3 CCC M-5 93935KAJ9 CCC M-6 93935KAK6 CCC * S&P Says Banks' Costs Soar Past Investment-Grade Nonfinancials ---------------------------------------------------------------- Financing costs for U.S. banks and brokers are rising, which will put pressure on earnings and could in turn affect lending rates, said an article published by Standard & Poor's. The article, which is titled "U.S. Credit Comment: Banks See Funding Costs Rise (Premium)," says that since the fourth quarter of 2007, financing costs for investment-grade banks and brokers have been higher than those for investment-grade nonfinancial corporates. Higher perceived risk, the need to raise additional capital, and hefty refunding needs in the near term have combined to push up the rate at which banks can borrow. Indeed, borrowing costs for short-, mid-, and longer-term debt are increasing, with yields on mid- and long-term bank bonds as well as short-term commercial paper moving higher relative to bench market rates over the last few months. "The higher cost of funds will continue to pressure earnings because the core banking business relies on the spread between lending and borrowing rates," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. "To counteract this, banks have increased their lending rates. Higher borrowing costs for corporations and consumers can restrain real economic activity." * Airlines Intend to Slash More Jobs After Labor Day ---------------------------------------------------- The airline industry is set to suffer its biggest wave of job losses since 2001, as carriers prepare to shed tens of thousands of jobs after the Labor Day holiday to cope with high fuel prices, ABIWorld reports. Airlines have collectively announced plans this year to cut more than 36,000 jobs, ABIWorld cites the Air Transport Association of America, an industry trade group. By year's end, the work force, which numbered 414,600 full-time equivalent employees in June, is projected to have been slashed by between 12 to 15 percent, according to U.S. Bureau of Transportation Statistics officials. That would be the biggest wave of job losses in the industry since 25 percent of jobs were lost immediately after the Sept. 11, 2001, terror attacks, says ABIWorld. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Working Assets Equity Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------ ------------ ------- ABRAXAS PETRO AXAS US 298 (10) (80) ABSOLUTE SOFTWRE ABT CN 101 (3) 31 AFC ENTERPRISES AFCE US 145 (45) (10) APP PHARMACEUTIC APPX US 1,105 (42) 260 ARIAD PHARM ARIA US 82 (39) 40 BARE ESCENTUALS BARE US 263 (49) 113 BLOUNT INTL BLT US 482 (33) 148 CABLEVISION SYS CVC US 9,483 (5,001) (633) CENTENNIAL COMM CYCL US 1,375 (1,040) 57 CHENIERE ENERGY LNG US 2,832 (202) 293 CHENIERE ENERGY CQP US 1,855 (289) 185 CHOICE HOTELS CHH US 349 (115) (16) CLOROX CO CLX US 4,708 (370) (412) COLUMBIA LABORAT CBRX US 48 (6) 11 CONEXANT SYS CNXT US 625 (133) 206 COREL CORP CREL US 255 (12) (20) COREL CORP CRE CN 255 (12) (20) CROWN MEDIA HL-A CRWN US 682 (661) (35) CV THERAPEUTICS CVTX US 351 (207) 267 CYBERONICS CYBX US 144 (7) 119 CYTORI THERAPEUT CYTX US 17 (12) 1 DELTEK INC PROJ US 181 (72) 39 DEXCOM DXCM US 57 (15) 34 DISH NETWORK-A DISH US 7,681 (2,092) (466) DOMINO'S PIZZA DPZ US 466 (1,438) 78 DUN & BRADSTREET DNB US 1,658 (512) (192) DYAX CORP DYAX US 85 (14) 21 EINSTEIN NOAH RE BAGL US 160 (22) (48) ENDEVCO INC EDVC US 24 (9) (18) EXTENDICARE REAL EXE-U CN 1,541 (19) 125 FORD MOTOR CO F BB 270,450 (3,229) 19,646 FORD MOTOR CO F US 270,450 (3,229) 19,646 GARTNER INC IT US 1,121 (42) (266) GENCORP INC GY US 994 (24) 67 GENERAL MOTORS GM US 136,046 (55,594) (18,825) GENERAL MOTORS C GMB BB 136,046 (55,594) (18,825) GLG PARTNERS INC GLG US 581 (350) 80 GLG PARTNERS-UTS GLG/U US 581 (350) 80 HEALTHSOUTH CORP HLS US 1,965 (872) (161) HUMAN GENOME SCI HGSI US 847 (120) (36) IMAX CORP IMAX US 216 (89) (4) IMAX CORP IMX CN 216 (89) (4) IMS HEALTH INC RX US 2,360 (10) 324 INCYTE CORP INCY US 205 (237) 152 INTERMUNE INC ITMN US 210 (81) 143 IPCS INC IPCS US 553 (38) 60 JAZZ PHARMACEUTI JAZZ US 187 (36) 0 KNOLOGY INC KNOL US 650 (43) 2 LIFE SCIENCES RE LSR US 202 (14) 10 LINEAR TECH CORP LLTC US 1,584 (434) 1,070 MEDIACOM COMM-A MCCC US 3,659 (283) (295) MOLECULAR INSIGH MIPI US 146 (10) 114 MOODY'S CORP MCO US 1,664 (822) (248) NATIONAL CINEMED NCMI US 540 (475) 58 NPS PHARM INC NPSP US 188 (197) 95 OCH-ZIFF CAPIT-A OZM US 2,129 (208) N.A. OSIRIS THERAPEUT OSIR US 32 (15) (23) PRIMEDIA INC PRM US 256 (135) (12) PROTECTION ONE PONE US 654 (52) 4 RADNET INC RDNT US 510 (77) 10 RASER TECHNOLOGI RZ US 73 (11) (12) REGAL ENTERTAI-A RGC US 2,688 (214) (124) RESVERLOGIX CORP RVX CN 21 (6) 16 ROK ENTERTAINMEN ROKE US 21 (26) (15) ROTHMANS INC ROC CN 536 (209) 100 RURAL CELLULAR-A RCCC US 1,405 (558) 169 SALLY BEAUTY HOL SBH US 1,496 (695) 413 SEALY CORP ZZ US 1,044 (105) 41 SEMGROUP ENERGY SGLP US 262 (55) (10) SHERWOOD COOPER SWC CN 283 (21) (54) SONIC CORP SONC US 798 (87) (41) ST JOHN KNITS IN SJKI US 213 (52) 80 SUN COMMUNITIES SUI US 1,221 (11) N.A. SYNTA PHARMACEUT SNTA US 87 (10) 60 TAUBMAN CENTERS TCO US 3,198 (1) N.A. TEAL EXPLORATION TEL SJ 47 (19) (42) TEAL EXPLORATION TL CN 47 (19) (42) THERAVANCE THRX US 281 (112) 202 UAL CORP UAUA US 21,336 (570) (2,522) UST INC UST US 1,417 (394) 165 VALENCE TECH VLNC US 37 (60) 11 WARNER MUSIC GRO WMG US 4,519 (99) (750) WEIGHT WATCHERS WTW US 1,107 (893) (210) WESTMORELAND COA WLB US 796 (192) 3 WR GRACE & CO GRA US 3,859 (273) 934 XM SATELLITE -A XMSR US 1,724 (1,144) (683) ********* 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. Sheryl Joy P. Olano, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2008. 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 ***