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 company’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.

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