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

           Thursday, September 14, 2006, Vol. 10, No. 219

                             Headlines

ABACUS 2006-13: Fitch Assigns Low-B Ratings to Three Note Classes
ACE CASH: High Leverage Prompts S&P's B+ Credit Rating
ADMINISTRACION NACIONAL: Moody's May Raise Low-B Currency Ratings
AQUILA MERCHANT: To Merge with Aquila Int'l. Ltd. on October 13
ASARCO LLC: Asarco Inc. Wants Stay Lifted to Commence Action

ASARCO LLC: Stipulates With Seaboard Allowing Access to Discovery
AZTEC METAL: Wants Until October 15 to File Schedules & Statement
BELLAIRE GENERAL: Chapter 7 Trustee Taps KenWood as Accountants
BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer
BIOMERICA INC: PKF CPA Raises Going Concern Doubt

BOUNDLESS MOTOR: Posts $10.4MM Net Loss in Quarter Ended June 30
CABLEVISION SYSTEMS: Term B Lenders Issue Default Notice
CABLEVISION SYSTEMS: Default Notice Cues Fitch's Negative Watch
CALPINE CORP: Court Approves Russell Project Bidding Procedures
CALPINE CORP: Gets Court Nod to Sell Dighton Plant for $90.2 Mil.

CARGO CONNECTION: June 30 Balance Sheet Upside-Down by $9.2 Mil.
CENTRAL VERMONT: Inks Settlement and Agrees to 3.73% Rate Hike
COLLINS & AIKMAN: Wants Plan-Filing Period Stretched to Nov. 27
COLLINS & AIKMAN: Disclosure Statement Hearing Moved to Sept. 18
COLORADO SPRINGS: Musicians' Claims Have Administrative Priority

CWABS TRUST: Moody's Places Ba1 Rating on Class B Certificates
DANA CORP: Wants to Sell Trailer Axles Business for $37.5 Million
DANA CORPORATION: Wants Court Nod on WESCO Settlement Agreement
DANA CORP: Court Okays Pact on Sept. 15 & Oct. 15 Pension Payments
DATALOGIC INTERNATIONAL: Receives Notice of Default from Laurus

DELPHI CORP: Amends Confidentiality Deal with Appaloosa, Harbinger
EPICUS COMM: S. W. Hatfield Raises Going Concern Doubt
FIREARMS TRAINING: June 30 Balance Sheet Upside-Down by $24.9 Mil.
FREESCALE SEMICON: Moody's Holds Ba1 Rating on $850 Million Notes
GREENPARK GROUP: Court Fixes October 20 as Claims Bar Date

HANESBRANDS INC: Closing Three Manufacturing Facilities
IASIS HEALTHCARE: Earns $15.9 Million in Quarter Ended June 30
IMMERSION CORP: Balance Sheet Upside-Down by $20 Mil. at June 30
INDIGO BRIDGES: Case Summary & Largest Unsecured Creditor
INROB TECH: Has $477,386 Working Capital Deficit at June 30

INSITE VISION: June 30 Balance Sheet Upside-Down by $6.8 Million
INTERSTATE BAKERIES: Court OKs SSI as Executive Search Consultant
INTERSTATE BAKERIES: Court OKs Joint Interest Pact With 3 Parties
J. CREW: Equity Deficit at July 29 Narrows to $83 Million
J.P. MORGAN: Moody's Places Ba1 Rating on Class M-9 Certificates

JOURNAL REGISTER: High Leverage Prompts Moody's Ba3 Debt Ratings
JUNIPER NETWORKS: Inks Strategic Partnership with Symantec
KRISPY KREME: Sees $110 Million of Revenues in Second Fiscal Qtr.
LGB INC: Files Disclosure Statement in California
LGB INC: Court Sets Disclosure Statement Hearing on September 25

MARSH & MCLENNAN: Earns $172 Million in Quarter Ended June 30
MERRY-GO-ROUND: Final Distributions Mailed to Creditors
MICROVISION INC: Posts $11.2 Mil. Net Loss in Qtr. Ended June 30
MERISANT WORLDWIDE: S&P Downgrades Corporate Credit Rating to CCC
MUSICLAND HOLDING: Taps Walker Truesdell as Winddown Officer

MUSICLAND HOLDING: Landlords Balk at Assume & Assign Leases Motion
NATIONAL CENTURY: Class C-7 Claims Totaling $426K Conveyed to BofA
NATIONAL CENTURY: LTC Entities' Lawsuit Stayed Until September 25
NATIONAL DATACOMPUTER: June 30 Balance Sheet Upside-Down by $4.3MM
NEXTPHASE WIRELESS: June 30 Stockholders' Deficit Tops $1.3 Mil.

NOBEX CORP: All Ballots Must Be Received by October 4
PARMALAT: Court Adjourns Permanent Injunction Hearing to Oct. 17
PARMALAT: Agrees with Liquidators to Continue TRO to December 15
PARMALAT: Cayman Appellate Court Okays Ernst & Young's Appointment
PEABODY ENERGY: Moody's Rates $1.8 Billion Credit Facility at Ba1

PULL'R HOLDINGS: Wants to Hire Harvey & Parmelee as Accountants
PULL'R HOLDINGS: Wants to Sell All Assets for $5.5 Million
RADNOR HOLDINGS: Taps KPMG LLP as Accountant and Tax Advisor
RCN CORP: Sells San Francisco Assets for $45 Million
ROTEC INDUSTRIES: Wants Until December 29 to File Chapter 11 Plan

SAINT VINCENTS: Fixes Cure Amounts for Staten Island CBAs
SAINT VINCENTS: GAIC Has Until October 31 to Examine SVCM Staff
SATELITES MEXICANOS: Judge Drain Approves Disclosure Statement
SBARRO INC: Posts $1.25 Mil. Net Loss in Quarter Ended July 16
SBARRO INC: To Open 100 Restaurants in India With RTC

SEAGATE TECHNOLOGY: Earns $840 Million for Fiscal Year 2006
SEAGATE TECH: Moody's Holds Ba2 Rating on $60 Million Debentures
SILICON GRAPHICS: Taxing Authorities Oppose Amended Plan
SITI-SITES.COM: Files Plan of Final Liquidation and Dissolution
SMURFIT-STONE: Moody's Affirms Senior Unsecured Rating at B2

SOLUTIA INC: Court Expands Colliers Turley's Scope of Duties
SOLUTIA INC: Ad Hoc Panels Wants Court to Reject Incentive Plan
STELCO INC: Employees Campaign to Join United Steelworkers Union
SUNWOOD VILLAGE: Case Summary & 20 Largest Unsecured Creditors
THERMADYNE HOLDINGS: Sees $5.8 Mil. Net Loss in 2006 2nd Quarter

TITAN FINANCIAL: Hires Administrative Services as Claims Agent
TITAN FINANCIAL: Has Until Oct. 3 to File Schedules & Statement
TOWER AUTOMOTIVE: Wants Granite Transition Agreement Approved
TOWER AUTOMTIVE: Committee to Appeal Judge Gropper's Decree
TOWER RECORDS: Selects Great American as Lead Bidder in Auction

TRUMP ENT: Teena Brockert Wants Stay Lifted to Pursue PI Action
TRUMP ENT: Extends LOI with Diamondhead for Mississippi Casino
TRUMP ENT: Names Gregg Caren as Vice President of Hotel Sales
UNITED HOSPITAL: Exclusive Plan Filing Period Extended to Dec. 29
UNITY VIRGINIA: Wants Until January 5 to File Chapter 11 Plan

UNITY VIRGINIA: Wants Terra Tech to Provide Cost Analysis
VALEANT PHARMA: Revenues Increase 12% to $230.2 Mil. in 2nd Qtr.
VILLAGES AT SARATOGA: Chapter 7 Trustee Hires PwC as Accountants
WERNER LADDER: Creditor Asserts $553,901 Administrative Claim
WEST HILLS: Wants Lawrence J. Maun as Bankruptcy Counsel

WINN-DIXIE: Florida Tax Collectors Want Tax Motion Dismissed
WINN-DIXIE: Fairfield Partners Want WD Montgomery's Motion Denied
WORLD HEALTH: Committee Moves Court to Create Statutory Trust
WORLDWATER & POWER: Equity Deficit Narrows to $1.5 Mil. at June 30
YUKOS OIL: Federal Court Nixes Moravel Appeal on $680 Mil. Charge

YUKOS OIL: Federal Court Denies Appeal for Extra Tax Bill
YUKOS OIL: Shareholder to Seek $50 Billion in Damages from Russia

* Restructuring Attorney Stephen Gallagher Joins Venable

* Chapter 11 Cases with Assets & Liabilities Below $1,000,000

                             *********

ABACUS 2006-13: Fitch Assigns Low-B Ratings to Three Note Classes
-----------------------------------------------------------------
Fitch rated the ABACUS 2006-13, Ltd. floating-rate notes:

   -- $159,000,000 class A due 2046 'AAA'
   -- $44,718,750 class B due 2046 'AA+'
   -- $10,931,250 class C due 2046 'AA'
   -- $11,925,000 class D due 2046 'AA-'
   -- $11,925,000 class E due 2046 'A+'
   -- $11,925,000 class F due 2046 'A'
   -- $7,950,000 class G due 2046 'A-'
   -- $11,925,000 class H due 2046 'BBB+'
   -- $9,937,500 class J due 2046 'BBB'
   -- $18,943,750 class K due 2046 'BBB-'
   -- $9,937,500 class L due 2046 'BB+'
   -- $7,950,000 class M due 2046 'BB'
   -- $5,962,500 class N due 2046 'BB-'

The rating is based upon:

   * the credit quality of the reference portfolio;

   * the legal structure of the transaction;

   * the financial strength of the counterparties and their
     guarantors; and

   * the credit quality of the collateral assets.

The rating assigned to the notes addresses the timely payment of
interest and the ultimate payment of principal of the notes at
maturity.

Fitch will monitor the performance of this transaction.


ACE CASH: High Leverage Prompts S&P's B+ Credit Rating
------------------------------------------------------
Standard & Poor's Rating Services assigned its 'B+' long-term
counterparty credit rating to ACE Cash Express Inc.  The outlook
is stable.

At the same time, the rating agency assigned a 'B-' rating to
ACE's senior notes.  Standard & Poor's also assigned a bank loan
rating of 'B+' and a recovery rating of '2' to ACE's senior
secured bank loan, indicating a substantial (80%-100%) recovery of
principal in the event of a payment default.

"The ratings on ACE are based in part on the company's high
leverage and low capital levels, as well as its reliance on third-
party loan financiers in crucial markets," said Standard & Poor's
credit analyst Rian M. Pressman, CFA.

Regulatory exposure, a risk factor for all companies that operate
in the payday loan/check cashing segment of the consumer finance
industry, is also a primary driver of the rating.

Other considerations include:

   * ACE's favorable product and geographic diversity (in
     comparison to other companies operating in its market
     segment);

   * growing consumer demand for payday loan and check-cashing
     products; and

   * the company's operational advantages vis-.-vis smaller
     competitors.

ACE's high leverage and low capital levels limit the rating.

Following its acquisition by JLL (a private equity firm), debt
(excluding asset-based warehouse borrowings) is projected to
comprise more than 45% and 140% of total assets and equity,
respectively.  For fiscal 2007, total average debt-to-EBITDA
and EBITDA interest coverage ratios(including projected asset-
based warehouse borrowings and the related interest) are
forecasted to be a modest 4.8x and 2.2x, respectively.

Of greater concern than the sheer magnitude of debt is the lack of
tangible equity, as shareholders' equity will be reduced to a
substantially negative position by the goodwill generated in the
transaction.  Although Standard & Poor's recognizes that short-
term cash advances do not require as much equity support as term
lenders or other long-term investors, the lack of tangible equity
leaves debt repayment entirely dependent on cash flow.

Regulatory risk, which is partially mitigated by the product and
geographic diversification of ACE's franchise, is also a primary
driver of the rating.  Although the regulatory environment has
become more settled as a greater number of states have adopted
enabling legislation and federally regulated banks have exited the
payday lending market, the high annual percentage rates and
incidence of customer refinancing attached to payday loans will
continue to draw scrutiny from government officials and consumer
groups.

ACE relies on continued participation of third-party loan
financiers in crucial markets.  This is particularly true for the
company's Texas-based stores, where ACE recently partnered with
True Financial to offer payday loans through a "credit services
organization" format . Given the substantial revenues generated by
its stores in Texas from this product, disruption of this
relationship would have an adverse impact on ACE's ability to
reduce leverage as planned.

The relatively large size of ACE's network of stores in the
fragmented check-cashing and payday loan product markets yields
operational advantages vis-.-vis smaller competitors.  Currently,
ACE has the most extensive network of stores in the U.S. offering
both check cashing and payday loan products.

Additionally, the company dominates the market for check-cashing
products in the U.S. with more than 10% of the market, almost 4x
as large as the nearest competitor.  Unlike many of its smaller
competitors, ACE is able to leverage substantial resources to
create proprietary technology.  These information systems and
centralized processes are effectively brought to bear on all
aspects of operations, including credit risk management and
compliance.

ACE, headquartered in Irving, Texas, offers check cashing, payday
loans, and other financial services to under- and unbanked
customers through an extensive network of retail stores.  At June
30, 2006, the ACE network comprised 1,573 stores in 38 states and
the District of Columbia.

The stable outlook is based on the company's ability to:

   * generate consistent earnings and cash flow;
   * maintain adequate credit quality metrics; and
   * reduce leverage as planned.

Negative ratings implications could result from:

   * a change in strategic direction;
   * an inability to pay down debt as planned;
   * increased leverage;
   * the loss of third-party loan financiers; or
   * adverse regulatory actions.


ADMINISTRACION NACIONAL: Moody's May Raise Low-B Currency Ratings
-----------------------------------------------------------------
Moody's Investors Service placed on review for possible upgrade
the B1 foreign currency issuer rating and Ba2 global local
currency rating of Administraci¢n Nacional de Combustibles,
Alcohol y Portland following Moody's earlier announcement that it
had placed the B1 long-term foreign currency ceiling for Uruguay
and the B3 local currency rating of the Uruguayan government on
review for possible upgrade.

The ratings of ANCAP reflect the application of Moody's rating
methodology for government-related issuers.  In accordance with
Moody's GRI rating methodology, ANCAP's Ba2 global local currency
rating reflects the combination of the following inputs:

   -- baseline credit assessment of 14 (mapping to a B1);

   -- the B3 local currency rating of the Uruguayan
      government; and

   -- low dependence; and high government support.

ANCAP's B1 foreign currency issuer rating reflects both the
Company's Ba2 global local currency rating and the degree of
sovereign interference anticipated in times of stress.

ANCAP is Uruguay's state-owned oil, alcohol and cement company.
It is headquartered in Montevideo, Uruguay.


AQUILA MERCHANT: To Merge with Aquila Int'l. Ltd. on October 13
---------------------------------------------------------------
Aquila Merchant Services Inc. and Aquila Merchant Services -
International Limited, a Bermuda exempted company, intend to merge
on Oct. 13, 2006.

The new company will continue as Aquila Merchant Services Inc. and
will be based in Kansas City, Missouri.

Creditors objecting to the merger must notify either company
on or about October 12, 2006.

                         About Aquila Inc.

Headquartered in Kansas City, Missouri, Aquila, Inc. (NYSE:ILA)
-- http://www.aquila.com/-- operates electricity and natural gas
transmission and distribution utilities serving customers in
Colorado, Iowa, Kansas, Michigan, Minnesota, Missouri and
Nebraska.  The company also owns and operates power generation
assets.

                About Aquila Merchant Services Inc.

Based in Kansas City, Missouri, Aquila Merchant Services Inc., a
wholly owned subsidiary of Aquila Inc., markets and trades natural
gas, electricity and other commodities throughout North America,
the United Kingdom and Western Europe.

                           *     *     *

Aquila Inc.'s 6-5/8% Convertible Subordinated Debentures due 2011
carry Moody's Investors Service's and Standard & Poor's Rating
Services' junk ratings.


ASARCO LLC: Asarco Inc. Wants Stay Lifted to Commence Action
------------------------------------------------------------
Asarco Inc. asks the U.S. Bankruptcy Court for the Southern
District of Texas in Corpus Christi to modify the automatic stay
to allow it to bring an action in the Chancery Court of the State
of Delaware to enforce its rights to compel ASARCO LLC to turn
over financial information.

Pending relief from the automatic stay, Asarco Inc. asks the
Court to allow it to pursue an investigation of ASARCO LLC under
Rule 2004 of the Federal Rules of Bankruptcy Procedure.

ASARCO LLC is a limited liability company formed under the laws
of the State of Delaware and Asarco Inc. is its sole member.
ASARCO LLC is a member of a consolidated tax group for which
Asarco Inc. is required to file estimated tax returns and pay the
estimated tax amounts each quarter.

Asarco Inc. is required to file an estimated tax return and pay
the estimated taxes due for the third quarter as early as
Sept. 15, 2006.  If Asarco Inc. makes an underpayment of
estimated tax, it will be subject to penalties under Section 6655
of the Internal Revenue Code.

To comply with its obligations, Asarco Inc. needs to have access
to ASARCO LLC's current operational and financial data, Brooks
Hamilton, Esq., at Haynes & Boone, LLP, in Houston, Texas,
contends.

Mr. Hamilton asserts that under the Delaware Limited Liability
Company Act, Asarco Inc. has the right to obtain information from
ASARCO LLC regarding the status of its business and financial
condition.

ASARCO LLC has initially provided that information to Asarco
Inc., voluntarily, but has ceased providing it in early 2006, Mr.
Hamilton says.

                         About ASARCO LLC

Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


ASARCO LLC: Stipulates With Seaboard Allowing Access to Discovery
-----------------------------------------------------------------
Seaboard Surety Company is a plaintiff in a lawsuit against Grupo
Mexico, S.A. de C.V. pending in the United States District Court
for the District of Arizona.  The Lawsuit relates to the
enforcement and scope of a written guaranty given by Grupo Mexico
in connection with certain surety bonds Seaboard issued on ASARCO
LLC's behalf.

ASARCO is not a party to the Arizona Action.

In connection with the Arizona Action, Seaboard served a third-
party subpoena duces tecum on ASARCO in July 2006.

ASARCO did not immediately comply with the Subpoena, asserting
that Seaboard's discovery request against it was subject to the
automatic stay.  Seaboard disputed that third-party discovery and
the Subpoena it issued to ASARCO is not subject to the automatic
stay.

The parties have resolved their dispute and ASARCO has agreed to
provide discovery to Seaboard.

Accordingly, the parties stipulate that:

   (a) the automatic stay is modified to permit Seaboard access
       to third-party discovery from ASARCO;

   (c) ASARCO will promptly produce certain documents specified
       by Seaboard as being a subset of the materials requested
       in the Subpoena; and

   (d) ASARCO will produce other documents responsive to the
       Subpoena that it locates with the use of reasonable
       diligence no later than Sept. 30, 2006.

                         About ASARCO LLC

Headquartered in Tucson, Arizona, ASARCO LLC --
http://www.asarco.com/-- is an integrated copper mining,
smelting and refining company.  Grupo Mexico S.A. de C.V. is
ASARCO's ultimate parent.  The Company filed for chapter 11
protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207).
James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A.
Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter
Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq.,
at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor
in its restructuring efforts.  Lehman Brothers Inc. provides the
ASARCO with financial advisory services and investment banking
services.  Paul M. Singer, Esq., James C. McCarroll, Esq., and
Derek J. Baker, Esq., at Reed Smith LLP give legal advice to
the Official Committee of Unsecured Creditors and David J.
Beckman at FTI Consulting, Inc., gives financial advisory
services to the Committee.  When the Debtor filed for protection
from its creditors, it listed $600 million in total assets and
$1 billion in total debts.

The Debtor has five affiliates that filed for chapter 11
protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521
through 05-20525).  They are Lac d'Amiante Du Quebec Ltee, CAPCO
Pipe Company, Inc., Cement Asbestos Products Company, Lake
Asbestos of Quebec, Ltd., and LAQ Canada, Ltd.  Details about
their asbestos-driven chapter 11 filings have appeared in the
Troubled Company Reporter since Apr. 18, 2005.

Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle,
Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No.
05-21346) also filed for chapter 11 protection, and ASARCO has
asked that the three subsidiary cases be jointly administered
with its chapter 11 case.  On Oct. 24, 2005, Encycle/Texas' case
was converted to a Chapter 7 liquidation proceeding. The Court
appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7
Trustee.  Michael B. Schmidt, Esq., and John Vardeman, Esq., at
Law Offices of Michael B. Schmidt represent the Chapter 7
Trustee. (ASARCO Bankruptcy News, Issue No. 28; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).


AZTEC METAL: Wants Until October 15 to File Schedules & Statement
-----------------------------------------------------------------
Aztec Metal Maintenance Corp. and two debtor-affiliates, Aztec
Wood Restoration & Maintenance, Inc. and Aztec Door Specialists,
Inc., asks the U.S. Bankruptcy Court of the Southern District of
New York to extend until Oct. 15, 2006, the deadline to file their
schedules of assets and liabilities and statements of financial
affairs.

The Debtors says that they need the extension in order to update
their books and records and collect the data needed for the
preparation and filing of the schedules.

Headquartered in Bronx, New York, Aztec Metal Corp. engages in the
business of restoration, refinishing & maintenance of metal,
marble, masonry & wood surfaces, and installation, facade &
construction cleaning.  The Company and two of its affiliates
filed for chapter 11 protection on Aug. 31, 2006 (Bankr. S.D.N.Y.
Case No. 06-12050).  When Aztec Metal filed for protection from
its creditors, it listed total assets of $3,595,188 and total
debts of $12,480,942.


BELLAIRE GENERAL: Chapter 7 Trustee Taps KenWood as Accountants
---------------------------------------------------------------
Janet S. Casciato-Northrup, the Chapter 7 trustee appointed in
Bellaire General Hospital, LP's liquidation proceeding, asks
authority from the U.S. Bankruptcy Court for the Southern District
of Texas, Houston Division, to employ KenWood & Associates, P.C.
as her accountants, nunc pro tunc July 27, 2006.

KenWood & Associates will:

   (a) prepare any necessary federal and state income, payroll,
       sales, franchise and excise tax returns and reports of the
       bankruptcy estate;

   (b) provide evaluations and advice to Trustee on tax matters
       which may arise, including the evaluation of the tax
       effects of the sale of assets of the estate;

   (c) analyze the Debtor's books and records and financial
       transactions regarding possible fraudulent, post-petition
       and/or preferential transfers to which the estate may be
       entitled to a recovery;

   (d) analyze the books and records and financial transactions of
       entities and individuals to which the Debtor is related,
       may be related or may have been related at some prior date
       to determine the value of any assets and existence of
       possible fraudulent transfers to which the estate may be
       entitled to a recovery;

   (e) locate, obtain, inventory and preserve the accounting,
       business and computer records of the Debtor for use in
       performing the tasks assigned to Applicant and in Trustee's
       administration of the estate; and

   (f) assist Trustee as an accountant and/or expert witness in
       litigation of the estate, assist in examinations and
       discovery under Federal Rule of Bankruptcy Procedure 2004
       and the Federal Rules of Civil Procedures and to prepare
       any required expert reports related to litigation matters.

The Trustee tells the Court that KenWood & Associates'
professionals bill:

             Professional              Hourly Rate
             ------------              -----------
             David E. Bott                $195
             David C. Johnson             $175
             Deborah J. Abbott            $160
             Betty Y. Sun                 $160

             Other Associates           $40 - $195

David C. Johnson, at KenWood & Associates, assures the Court that
the Firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code.

Headquartered in Houston, Texas, Bellaire General Hospital, L.P.
-- http://www.bellairemedicalcenter.com/-- operates a hospital.
The Company filed for chapter 11 protection on January 3, 2005
(Bankr. S.D. Tex. Case No. 05-30089).  Daniel F. Patchin, Esq., at
McClain, Leppert & Maney, P.C. represents the Debtor.  When the
Debtor filed for protection from its creditors, it listed
estimated assets and debts of $10 million to $50 million.  The
Court converted the Debtor's chapter 11 case to a chapter 7
liquidation proceeding on April 29, 2005.  The hospital's secured
creditors -- Columbia Hospital of Houston and GE Credit Corp. --
decided to foreclose on the hospital's property after efforts to
auction off the assets failed.  Janet S. Casciato-Northrup is the
Court appointed Chapter 7 Trustee.  Blake E. Rizzo, Esq., and
David Ronald Jones, Esq., at Porter & Hedges LLP, represent the
Chapter 7 Trustee.


BERRY PLASTICS: Discloses Pricing Terms on 10.75% Notes Offer
-------------------------------------------------------------
Berry Plastics Corporation disclosed the pricing terms of its
tender offer and consent solicitation for any and all of its
outstanding $335 million aggregate principal amount of 10.75%
Senior Subordinated Notes due 2012.

The Company also disclosed that as of 5:00 p.m., New York City
time, on Sept. 5, 2006, the "Consent Payment Deadline", it had
received tenders and consents from holders of $335 million in
aggregate principal amount of the Notes, representing 100% of the
total outstanding principal amount of the Notes and that it has
extended the expiration date for the tender offer from 12:00
midnight, New York City time, on Sept. 19, 2006, to 12:00 midnight
on Sept. 20, 2006.

The total consideration for each $1,000 principal amount of Notes
validly tendered is $1,092.07, which includes a consent payment of
$30 per $1,000 principal amount of Notes.

Holders whose Notes are validly tendered after the Consent Payment
Deadline, but on or prior to 12:00 midnight, New York City time,
on Sept. 20, 2006 and accepted for purchase by the Company will
receive the tender offer consideration of $1,062.07 per $1,000
principal amount of Notes tendered, but will not receive the
consent payment, and will receive accrued and unpaid interest on
the Notes up to, but not including, the payment date for the
Offer.

Copies of the complete terms and conditions of the tender offer
and consent solicitation may be obtained by contacting MacKenzie
Partners, Inc., the information agent for the offer, at (212) 929-
5500 (collect) or (800) 322-2885 (U.S. toll-free).  Deutsche Bank
Securities Inc. is the exclusive dealer manager and solicitation
agent for the tender offer and consent solicitation.  Additional
information concerning the tender offer and consent solicitation
may be obtained by contacting Deutsche Bank Securities Inc., at
(212) 250-6008.

Based in Evansville, Indiana, Berry Plastics Corporation
-- http://www.berryplastics.com/-- is a leading manufacturer and
marketer of rigid plastic packaging products.  Berry Plastics
provides a wide range of rigid open top and rigid closed top
packaging as well as comprehensive packaging solutions to over
12,000 customers, ranging from large multinational corporations to
small local businesses.  The company has 25 manufacturing
facilities worldwide and more than 6,800 employees.

                        *     *     *

As reported in the Troubled Company Reporter on Aug. 7, 2006,
Moody's Investors Service confirmed the B3 rating on Berry
Plastics Corp.'s $335 million 10.75% senior subordinated notes,
due July 15, 2012.

As reported in the Troubled Company Reporter on July 31, 2006,
Standard & Poor's Ratings Services revised its CreditWatch
implications on the 'B+' corporate credit rating on Berry Plastics
Corp. to negative from developing.


BIOMERICA INC: PKF CPA Raises Going Concern Doubt
-------------------------------------------------
PKF, Certified Public Accountants, expressed substantial doubt
about Biomerica, Inc.'s ability to continue as a going concern
after auditing the Company's financial statements for the fiscal
years ended May 31, 2006 and 2005.  The auditing firm pointed to
the Company's net losses and negative cash flows from operations.

During the first six months of fiscal 2006 and all of fiscal 2005,
Biomerica had one active subsidiary, Lancer Orthodontics, Inc.,
which is engaged in the manufacturing, sales and development of
orthodontic products.  As of May 31, 2005, Biomerica's direct
ownership percentage of Lancer was 23.41% and its direct and
indirect voting control over Lancer was greater than 50%.

Effective Dec. 1, 2005 the operations of Lancer Orthodontics were
no longer consolidated with those of Biomerica.  The consolidated
income statement for the year ended May 31, 2006 includes the
operations of Lancer Orthodontics for the period of June 1, 2005
through Nov. 30, 2005.

Biomerica reported consolidated net income of $230,273 for the
year ended May 31, 2006.  Lancer had a net loss of $319,146 (of
which $67,476 is Biomerica's share of that loss) for the first six
months of the fiscal year, which is included in the fiscal 2006
results.  Without the Lancer loss, Biomerica would have recognized
a gain before discontinued operations and taxes of $222,041.

Consolidated net sales were $7,184,992 for fiscal 2006 compared to
$9,381,837 for fiscal 2005.  This represents a decrease of
$2,196,845, or 23.4% for fiscal 2006.

The overall decrease in sales from fiscal 2005 to fiscal 2006 is a
result of the deconsolidation of Lancer as of Dec. 1, 2005.  On a
stand-alone basis, the sales of Biomerica increased from
$3,430,380 to $4,259,954, or $829,574 (24.2%).  Of the total
consolidated net sales for fiscal 2006, $2,925,038 is attributable
to Lancer (which was for the first six months of the fiscal year),
and $4,259,954 to Biomerica.  The increase at Biomerica was due to
increases of sales to foreign distributors as well as increased
sales of certain product lines.

A full-text copy of the Company's Annual Report is available for
free at http://researcharchives.com/t/s?1182

                         Loan Agreement

Biomerica's shareholder's line of credit expired on Sept. 13, 2003
and was not renewed.  The unpaid principal and interest was
converted into a note payable in the amount of $313,318 bearing
interest at 8% and payable Sept. 1, 2004.  The due date on this
note was extended until Sept. 1, 2005 and subsequently to
Sept. 1, 2006 at the same terms.

Minimum payments of $4,000 per month plus an additional $3,500 per
month, depending on quarterly results of the Company, are being
made.  Although the Company is currently out of compliance with
the terms of the loan agreement, in August 2006 the note holder
agreed to extend the due date on the note payable until
Sept. 1, 2007.

The terms of the note are the same except that additional payments
of $3,500 per month, depending on quarterly results of the
Company, have been reduced to $2,000 per month.  Of the additional
payments of $10,500 per quarter due for the quarters ended
Aug. 31, 2005, Nov. 30, 2005 and Feb. 28, 2006, only a total of
$5,250 has been paid.

                           About Biomerica

Biomerica, Inc., -- http://www.biomerica.com/-- is a global
medical technology company, based in Newport Beach, California.
The Company's diagnostics division manufactures and markets
advanced diagnostic products used at home, in hospitals and in
physicians' offices for the early detection of medical conditions
and diseases.  Its existing medical device business is conducted
through two companies: Biomerica, Inc., which is engaged in the
human diagnostic products market; and Lancer Orthodontics, Inc.,
which is engaged in the orthodontic products market.


BOUNDLESS MOTOR: Posts $10.4MM Net Loss in Quarter Ended June 30
----------------------------------------------------------------
For the three months ended June 30, 2006, Boundless Motor Sports
Racing Inc., nka Dirt Motor Sports Inc., reported a $10,427,614
net loss, an increase of $7,771,104, from net loss of $2,656,510
in the three months ended June 30,2005.

The Company's total revenues for the quarter ended June 30, 2006
decreased to $4,129,967, from $4,214,045 in the same period last
year.

At June 30, 2006, the Company's balance sheet showed $20,427,280
in total assets, $8,486,085 in total liabilities, and $11,941,195
in total stockholders' equity.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?117c

                        Going Concern Doubt

As reported in the Troubled Company Reporter on April 24, 2006,
Murrell, Hall, McIntosh & Co. PLLP expressed substantial doubt on
the Boundless Motor's ability to continue as a going concern after
it audited the Company's financial statements for the year ended
Dec. 31, 2005.  The auditing firm pointed to the Company's
significant net losses and negative working capital.

                        About Boundless Motor

Headquartered in Norman, Oklahoma, Boundless Motor Sports Racing
Inc. nka Dirt Motor Sports Inc. markets and promotes motorsports
entertainment primarily in the United States.  The Company,
through its subsidiaries, operates seven dirt motorsports tracks
in New York, Pennsylvania, and Florida.  It also owns and operates
four sanctioning bodies in dirt motorsports, including the World
of Outlaws, DIRT MotorSports, United Midwestern Promoters, and the
Mid America Racing Series.


CABLEVISION SYSTEMS: Term B Lenders Issue Default Notice
--------------------------------------------------------
CSC Holdings, Inc., and Cablevision Systems Corporation failed to
obtain a waiver of default from their Term B lenders in connection
with their non-compliance of certain terms under their credit
agreement.  As a result, on Sept. 7, 2006, the bank serving as
administrative agent under the Credit Agreement gave a notice of
default to CSC.

As a result, CSC will have until Nov. 6, 2006, to cure its
noncompliance with the financial information covenant, with
respect to the default notice from the Term B lenders.  CSC
expects to deliver all required information under the Credit
Agreement prior to the expiration of any applicable cure period;
however.

If CSC fails to cure the default after the expiration of the
applicable cure period, the administrative agent shall, at the
request of, or may, with the consent of, the Required Lenders,
exercise against CSC the remedies provided for in the Credit
Agreement, including the right to accelerate the principal and
interest on all outstanding loans under the Credit Agreement

As reported in the Troubled Company Reporter on Aug. 31, 2006,
lenders under CSC's Credit Agreement, dated as of Feb. 24, 2006,
other than the Term B lenders, agreed to waive until Sept. 22,
2006 any default resulting from CSC and Cablevision Systems' late
filing of their Form 10-Q for the quarter ended June 30, 2006.
CSC has disclosed that it needs to restate previously issued
financial statements because of errors in relation to the grant
date and exercise price assigned to a number of their stock
options and SAR grants during the 1997-2002 period.

                          Exchange Offer

CSC also disclosed that it would further extend until
Oct. 10, 2006, at 5:00 P.M., New York City time, its offer to
exchange up to $500 million aggregate principal amount of its 6-
3/4% Senior Notes due 2012, which were initially issued and sold
in a private placement in April 2004, for an equal aggregate
amount of its registered 6-3/4% Senior Notes due 2012.

Except for the extension of the expiration date, all of the other
terms of the exchange offer remain as set forth in the exchange
offer prospectus dated July 18, 2006.

                       About Cablevision

Headquartered in Manhattan, Cablevision Systems Corp. (NYSE: CVC)
-- http://www.cablevision.com/-- provides cable TV service to
about 3 million customers in and around New York City.  The firm
has upgraded its network and services to include digital cable,
movies-on-demand, and VoIP telephony.  It also operates business
communications service provider Cablevision Lightpath and regional
sports channels.  Cablevision controls Madison Square Garden, the
New York Knicks and the New York Rangers, plus Radio City Music
Hall.  Cablevision pulled plans to spin off its cable network
unit, Rainbow Media Holdings, and instead closed that company's
money-losing satellite TV assets.  Chairman Charles Dolan and his
family control Cablevision.

At Mar. 31, 2006, Cablevision System Corp.'s balance sheet showed
$2,517,442,000 stockholders' deficit compared to a $2,468,766,000
deficit at Dec. 31, 2005.

                           *     *     *

Moody's Investor Service placed Cablevision's B1 corporate family
and other long-term ratings on review for downgrade following the
announcement of noncompliance and the potential for default on its
Term Loan B.

As reported in the Troubled Company Reporter on Sept. 1, 2006,
Standard & Poor's Ratings Services' ratings on Cablevision Systems
Corp., including the 'BB' corporate credit rating and the ratings
for its related entities, remained on CreditWatch with negative
implications.

As reported in the Troubled Company Reporter on Aug. 10, 2006,
Dominion Bond Rating Service placed the ratings of Cablevision
Systems Corporation -- B (low) and its wholly-owned subsidiary,
CSC Holdings, Inc. -- BB (low) and B (high) Under Review with
Developing Implications following the Company's announcement that
it intends to restate its financial results related to stock
options and stock appreciation rights for the 1997-2002 period.


CABLEVISION SYSTEMS: Default Notice Cues Fitch's Negative Watch
---------------------------------------------------------------
Fitch placed these ratings for both Cablevision Systems
Corporation and the restricted group of CSC Holdings, Inc. on
Rating Watch Negative.

  CSC:

    -- Issuer Default Rating 'B+'
    -- Senior unsecured debt 'BB-/RR3'
    -- Senior secured credit facility 'BB/RR1'

  CVC:

    -- Issuer Default Rating 'B+'
    -- Senior unsecured debt 'CCC+/RR6'

Fitch's action follows CSC's disclosure that it has received a
notice of default from the bank acting as administrative agent
under CSC's credit agreement in connection with violation of the
financial information covenant contained within the credit
facility.

In accordance with the terms of the credit facility, CSC has 60
days (until Nov. 6, 2006) to cure the covenant violation.  Failure
to cure the default within the 60-day cure period can result in an
acceleration of the outstanding loans under the credit agreement
creating significant refinancing risk.

CSC obtained a waiver of any default related to the financial
reporting covenant until Sept. 22, 2006, from the term A loan
and revolver lenders.  CVC would then have 30 days to cure the
default.  In the event CVC and CSC fail to deliver the required
financial information by Oct. 25, 2006, and in the absence of
any extension thereof, the term A loan and revolver lenders can
exercise any remedy against CSC as provided in the credit
agreement including accelerating the outstanding amounts under
the term A loan and the revolver loan.

As of Sept. 8, 2006, CVC and CSC have violated financial reporting
covenants contained in various notes and debentures issued by CVC
and CSC.  The non-compliance can become an event of default as to
any of the notes or debentures if the company receives a notice of
default from holders of at least 25% of a series of notes or
debentures and CVC or CSC (as the case may be) fail to cure the
non compliance within 60 days after receipt of the notice.  CVC
has not received such a notice of default from holders of CVC or
CSC notes or debentures.

The failure to deliver required financial statements to its
lenders and holders of notes and debentures stems from an ongoing
investigation of the company's financial policy and past practices
related to the grant of stock options and stock appreciation
rights.  As a result of this investigation, CSC has determined
that it expects to restate its financial statements dating back to
1997 to reflect required adjustments related to the stock options
and stock appreciation rights issues.  CVC did not file its 10Q
for second quarter-2006.

Fitch's Recovery Ratings, introduced in 2005, are a relative
indicator of creditor recovery on a given obligation in the event
of a default.


CALPINE CORP: Court Approves Russell Project Bidding Procedures
---------------------------------------------------------------
The Hon. Burton R. Lifland of the U.S. Bankruptcy Court for the
Southern District of New York approved the proposed uniform
bidding procedures for the sale of Russell City Energy, LLC's
assets.

Each potential bidder other than Aircraft Services Corporation
must deliver to Calpine Corporation, Kirkland & Ellis, LLP, Akin
Gump Strauss Hauer & Felp, LL, Paul, Weiss, Rifkind, Wharton &
Garrison, LLP, and Fried, Frank, Harris, Shriver & Jacobson, LLP,
a written offer no later than 5:00 p.m., on Sept. 15, 2006.

The written offer, among other things, must state the Bidder's
offer to purchase the Partnership Interest and must state that
the Bidder is financially capable of consummating the
transactions contemplated by modified definitive documents.

A Qualifying Bidder's offer must be accompanied by a $5,000,000
cash deposit.

If there are two or more Qualifying Bids received, Russell will
conduct an auction on Sept. 19, 2006, at the offices of Kirkland &
Ellis, LLP, located at the Citigroup Center, 153 East 53rd Street,
in New York City.

If the Debtors accept an offer from a bidder other than Aircraft
Services, they agree to pay Aircraft Services a $1,000,000 break-
up fee.  Aircraft Services will also be reimbursed for any
necessary expenses not exceeding $700,000.  The Break-Up Fee and
Expense Reimbursement will be allowed administrative expense
claims in each of Russell, Loan Oak Energy, Calpine Power Company
and Anacapa Land Company.

If no timely, conforming Qualifying Bids are submitted, a sale
hearing will take place on Sept. 21, 2006, to consider the APA
with Aircraft Services.

                       About Calpine Corp.

Headquartered in San Jose, California, Calpine Corporation --
http://www.calpine.com/-- supplies customers and communities with
electricity from clean, efficient, natural gas-fired and
geothermal power plants.  Calpine owns, leases and operates
integrated systems of plants in 21 U.S. states and in three
Canadian provinces.  Its customized products and services include
wholesale and retail electricity, gas turbine components and
services, energy management and a wide range of power plant
engineering, construction and maintenance and operational
services.

The Company filed for chapter 11 protection on Dec. 20, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M. Cieri, Esq.,
Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G.
Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their
restructuring efforts.  Michael S. Stamer, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  As of Dec. 19, 2005, the Debtors listed
$26,628,755,663 in total assets and $22,535,577,121 in total
liabilities.  (Calpine Bankruptcy News, Issue No. 25; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


CALPINE CORP: Gets Court Nod to Sell Dighton Plant for $90.2 Mil.
-----------------------------------------------------------------
Calpine Corporation received approval from the U.S. Bankruptcy
Court for the Southern District of New York to sell the 170-
megawatt Dighton Power Plant, located in Dighton, Massachusetts,
to BG North America, LLC for approximately $90.2 million.  The
company requested authorization from the Bankruptcy Court to sell
the Dighton Power Plant as part of the Court-approved auction
process in July 2006.  The transaction, subject to certain
regulatory approvals, is expected to close within the next 30 to
60 days.

"Selling our interest in the Dighton Power Plant is another step
forward in our restructuring to emerge from Chapter 11 as a
profitable, more competitive power company," said Robert P. May,
Calpine's Chief Executive Officer.  "We're focused on completing
our restructuring as efficiently and quickly as possible.  The
Dighton sale will help strengthen Calpine's liquidity and allow us
to further concentrate our resources on those core power assets
and markets where we can best compete."

As part of its restructuring program, when possible, Calpine seeks
opportunities for its plant personnel to continue to operate and
maintain those assets that are sold or transferred to new owners.
For the Dighton sale, BG North America, LLC will hire all the
existing Calpine full-time employees of the Dighton Power Plant
upon change of control.  In December of 2000, Calpine acquired the
natural gas-fired, combined-cycle plant, which entered operations
in July 1999.  The plant currently supplies electricity to the New
England power market.

"I'd like to take this opportunity to thank the many dedicated and
talented Calpine employees that helped develop, build and operate
the Dighton Power Plant," continued Mr. May.  "This facility
provides a much-needed source of clean, cost-competitive energy
for the New England power market and will continue to be operated
by an outstanding staff of energy professionals with a proven
record for safe, reliable operations."

                          APA Amendment

The Debtors had informed the Court that in a letter agreement
dated Aug. 15, 2006, Dighton Power Associates Limited Partnership
and BG North America, LLC, amended their Asset Purchase Agreement.

The Amended APA provides, among others, that ISO-New England,
Inc., will be notified of the closing of the sale to allow it to
effect the transfer of the asset owner and lead participant
status with respect to the Power Plant to BG North America.

In addition, the Amended APA provides that if no other competing
bids are submitted:

   (a) BG North America will not be required to consummate the
       Closing before Nov. 1, 2006; and

   (b) Dighton and BG North America will jointly notify the
       Federal Energy Regulatory Commission of the sale by
       Oct. 16, 2006, for the FERC approval contemplated by the
       APA.

As reported in the Troubled Company Reporter on Aug. 21, 2006,
Calpine obtained permission from the Bankruptcy Court to enter
into the Dighton Project Asset Purchase Agreement and assume and
assign the Assigned Contracts.

Debtor Dighton Power Associates Limited Partnership owns a 170-
megawatt gas-fired combined cycle electric generating facility in
Dighton, Massachusetts.  The Dighton Project is comprised of
nearly 60 acres of land, with the main facility site occupying
approximately six acres.  Currently, there are 15 full-time
employees assigned to the Dighton Project, all of whom are non-
union employees.

The Debtors, the Official Committee of Unsecured Creditors, and
the Unofficial Committee of Second Lien Debtholders, in
consultation with Law Debenture Trust Company of New York, as
Indenture Trustee for the First Lien Noteholders, determined that
the Dighton Project would not maximize nor sustain Calpine
Corporation's overall enterprise value.

The Committees have agreed that the Debtors may use up to
$600,000 of the DIP Facility proceeds to fund operations and
expenses at the Dighton Project.

During the peak summer season, the Dighton Project is cash flow
positive.  However, in the fall, the Dighton Project may
experience a liquidity crisis, Bennett L. Spiegel, Esq., at
Kirkland & Ellis LLP, in Los Angeles, California, tells the
Court.

Because of the impending liquidity crisis, the Debtors agree to
sell substantially all of the assets in the Dighton Project.  As
a result, the Debtors executed an Asset Purchase Agreement for
the sale of the Dighton Project to BG North America LLC.

                       About Calpine Corp.

Headquartered in San Jose, California, Calpine Corporation (OTC
Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies
customers and communities with electricity from clean, efficient,
natural gas-fired and geothermal power plants.  Calpine owns,
leases and operates integrated systems of plants in 21 U.S. states
and in three Canadian provinces.  Its customized products and
services include wholesale and retail electricity, gas turbine
components and services, energy management and a wide range of
power plant engineering, construction and maintenance and
operational services.

The Company filed for chapter 11 protection on Dec. 20, 2005
(Bankr. S.D.N.Y. Lead Case No. 05-60200).  Richard M. Cieri, Esq.,
Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G.
Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their
restructuring efforts.  Michael S. Stamer, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  As of Dec. 19, 2005, the Debtors listed
$26,628,755,663 in total assets and $22,535,577,121 in total
liabilities.  (Calpine Bankruptcy News, Issue No. 25; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


CARGO CONNECTION: June 30 Balance Sheet Upside-Down by $9.2 Mil.
----------------------------------------------------------------
Cargo Connection Logistics Holding Inc. disclosed that for the
three months ended June 30, 2006, the Company incurred a $690,829
net loss from total operating revenues of $4,056,727.

The current quarter result showed a 63.7% increase in net loss and
22.8% increase in total operating revenues, from a $421,984 net
loss out of $3,302,309 in total operating revenues in the same
period last year.

At June 30, 2006, the Company's balance sheet reported a
$9,238,508 total stockholders' deficiency resulting from total
assets of $2,319,638 and total liabilities of $11,558,146.

The Company's June 30, 2006 balance sheet further showed strained
liquidity with total current assets of $1,831,490 and total
current liabilities of $10,167,071.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?117e

Headquartered in Inwood, New York, Cargo Connection Logistics
Holding Inc., through its subsidiaries, provides transportation
logistics services in North America.  The Company primarily
provides truckload and less-than-truckload transportation
services, as well as provides value-added logistics services,
including provision of the U.S. Customs Bonded warehouse
facilities and container freight station operations.  The Company
also provides pick and pack services comprising changing labels or
tickets on items, inspection of goods into the United States, and
recovery of goods damaged in transit.


CENTRAL VERMONT: Inks Settlement and Agrees to 3.73% Rate Hike
--------------------------------------------------------------
Central Vermont Public Service and the Vermont Department of
Public Service have reached a settlement in the Company's pending
rate case, agreeing to a 3.73% increase effective Jan. 1, 2007.

The Company had filed for a 6.15% increase, to be effective
Feb. 1, 2007.  A settlement agreement has been filed with the
Vermont Public Service Board, which must review and approve the
settlement before it can become effective.

"This settlement provides the company with adequate cash flows and
an opportunity to earn a fair return, while keeping rates very
competitive," Bob Young, president, said.  "With utilities seeking
double-digit rate hikes across the Northeast, we are proud of our
ability to control costs and provide our customers comparatively
low rates, and a high level of service."

"We appreciate the DPS's efforts to reach a settlement," Mr. Young
said.  "It will put the litigation of the rate case aside and
allow us to continue our focus on driving out costs, other
measures to restore the company's financial strength, and new ways
to improve reliability and customer service."

The Company disclosed that driven in part by last year's
hurricanes and problems in the Middle East, fuel prices have risen
sharply worldwide, driving up electricity prices for most
utilities.  In the past two years, rate requests of up to 60% have
been sought in New England, and as much as 72% in Maryland.

The Company also disclosed that in Vermont, recent rate requests
by other utilities have ranged from just under 10% to nearly 23%
and that its customers have been largely protected from the
increase in energy prices by fixed-price contracts with Hydro-
Quebec and Entergy-Vermont Yankee.

The Company agreed to reduce its request primarily by shrinking
its proposed allowed return on equity from 12% to 10.75%.  The
Company's request was further reduced when it agreed to separately
pursue a request to recover $4.6 million in unplanned power
acquisition costs following Hurricanes Katrina and Rita in 2005.

Founded in 1929, Central Vermont Public Service (NYSE: CV) is
Vermont's largest electric utility.  Central Vermont's non-
regulated subsidiary, Eversant Corporation, sells and rents
electric water heaters through a subsidiary, SmartEnergy Water
Heating Services.

                        *     *     *

As reported in the Troubled Company reporter on Aug. 4, 2006,
Standard & Poor's Ratings Services affirmed its 'BB+' corporate
credit rating and 'BBB' senior secured bond rating on electric
utility Central Vermont Public Service Corp.

At the same time, the preferred stock rating was lowered to 'B+'
from 'BB-'.  The outlook is stable.


COLLINS & AIKMAN: Wants Plan-Filing Period Stretched to Nov. 27
---------------------------------------------------------------
Collins & Aikman Corporation and its debtor-affiliates ask the
U.S. Bankruptcy Court for the Eastern District of Michigan to
further extend their:

   -- exclusive period to file a plan of reorganization to
      Nov. 27, 2006;

   -- exclusive period to solicit acceptances of that Plan to
      Jan. 26, 2007.

It is important to the stability of their Chapter 11 cases that
the Debtors maintain their exclusivity rights during this critical
period, Ray C. Schrock, Esq., at Kirkland & Ellis LLP, in Chicago,
Illinois, tells the Court.

Mr. Schrock points out that the Debtors have made significant
progress in their Chapter 11 cases as evidenced by the recent
filing of a Plan and Disclosure Statement.

Terminating the Exclusive Periods now and allowing competing plans
to be filed would only be disruptive and would jeopardize
significant progress, Mr. Schrock asserts.

Mr. Schrock relates that the Debtors and the unofficial steering
committee for senior secured prepetition lenders remain engaged in
negotiations with the Official Committee of Unsecured Creditors
with respect to the Plan.

Furthermore, the Debtors remain engaged in negotiations with their
principal customers regarding global resolutions.  The Debtors are
also beginning discussions with other significant parties
regarding plan-related issues.

The Debtors are hopeful that negotiations will result in a
consensual plan among their principal creditor constituencies,
Mr. Schrock notes.

"The Debtors are mindful of the desire of creditors and all
parties-in-interest for the Debtors to emerge from Chapter 11 as
soon as possible.  Indeed, the Debtors share this common goal,"
Mr. Schrock says.  "To that end, the Debtors require the extension
to afford them the ability to negotiate and confirm a plan of
reorganization."

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in cockpit
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case
No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis LLP,
represents C&A in its restructuring.  Lazard Freres & Co., LLC,
provides the Debtor with investment banking services.  Michael S.
Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents
the Official Committee of Unsecured Creditors Committee.  When the
Debtors filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total debts.
(Collins & Aikman Bankruptcy News, Issue No. 41; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


COLLINS & AIKMAN: Disclosure Statement Hearing Moved to Sept. 18
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Michigan
adjourns the status conference regarding Collins & Aikman
Corporation and its debtor-affiliates' Disclosure Statement to
Sept. 18, 2006, at 2:00 p.m., in Detroit, Michigan.

The Debtors filed their stand-alone Plan of Reorganization and
Disclosure Statement on Aug. 30, 2006.

Pursuant to the Plan, the Debtors intend to emerge with a
significantly de-levered balance sheet.  The Debtors' secured debt
under their Prepetition Credit Agreement will be converted into
common stock in reorganized Collins & Aikman.

The Debtors and the unofficial steering committee for senior
secured prepetition lenders remain engaged in negotiations with
the Official Committee of Unsecured Creditors with respect to the
Plan.  The Debtors also remain engaged in negotiations with their
principal customers regarding global resolutions.  The Debtors
are also beginning discussions with other significant parties
regarding plan-related issues.

Headquartered in Troy, Michigan, Collins & Aikman Corporation
-- http://www.collinsaikman.com/-- is a global leader in cockpit
modules and automotive floor and acoustic systems and is a leading
supplier of instrument panels, automotive fabric, plastic-based
trim, and convertible top systems.  The Company has a workforce of
approximately 23,000 and a network of more than 100 technical
centers, sales offices and manufacturing sites in 17 countries
throughout the world.  The Company and its debtor-affiliates filed
for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case
No. 05-55927).  Richard M. Cieri, Esq., at Kirkland & Ellis LLP,
represents C&A in its restructuring.  Lazard Freres & Co., LLC,
provides the Debtor with investment banking services.  Michael S.
Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents
the Official Committee of Unsecured Creditors Committee.  When the
Debtors filed for protection from their creditors, they listed
$3,196,700,000 in total assets and $2,856,600,000 in total debts.
(Collins & Aikman Bankruptcy News, Issue No. 41; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


COLORADO SPRINGS: Musicians' Claims Have Administrative Priority
----------------------------------------------------------------
The Colorado Springs Symphony Orchestra Association contested the
payment of its musicians' wages and benefits as administrative
expenses in the course of its chapter 11 restructuring.  When the
Orchestra filed for Chapter 11 protection (Bankr. D. Colo. Case
No. 03-10421), it was party to a collective bargaining agreement
with the Pikes Peak Musicians Association.  That CBA required the
musicians to remain available for rehearsals and performances on a
flexible basis.  In exchange, the CBA guaranteed them compensation
for a minimum number of pay periods, regardless of whether their
services were used by the Orchestra during that time.

After the Orchestra filed its bankruptcy petition, it continued to
plan for concerts because it was actively seeking to reorganize
its business.  Although the concert schedule was uncertain during
the post-petition period, the musicians remained available to
perform if called upon to do so.

Ultimately, the Orchestra was unable to resolve its financial
difficulties.  It cancelled all previously scheduled concerts,
rejected its collective bargaining agreement, and commenced
liquidation proceedings.

The union filed an application for allowance and payment of the
musicians' postpetition wages and benefits due under the CBA in
the chapter 7 proceeding.  The Honorable Howard R. Tallman, in a
decision published at 308 B.R. 508, granted that application.  The
bankruptcy trustee appealed.  The United States District Court for
the District of Colorado affirmed Judge Tallman's decision (Dist.
Colo. Case No. 04-M-765).  The bankruptcy trustee again appealed.

The trustee contends that the musicians' claims fail to meet the
requirements for administrative expense priority under 11 U.S.C.
Secs. 503(b)(1)(A) and 507(a)(1).  In particular, the trustee
argues that the musicians' failure to rehearse or perform after
the filing of the petition disqualifies their wages from
consideration as expenses necessary to preserve the Orchestra's
business during reorganization.

The Association argues that the musicians' wage claims are given
payment primacy by Congress under 11 U.S.C. Sec. 1113, which
grants special protections to union members in the collective
bargaining agreement context.  The Association claims it is
entitled to first priority, even if its wage claims fail to
qualify as administrative expenses.

In an Opinion published at 2006 WL 2522471, the United States
Court of Appeals for the Tenth Circuit considers whether and how
application of Secs. 503 and 507 is affected by the labor
protections contained in Sec. 1113.  The 10th Circuit concludes:

     (1) the orchestra association's obligations to the musicians
         that became due between the chapter 11 petition date and
         the date the CBA was rejected are payable from the
         chapter 7 estate as priority administrative expenses;

     (2) remand to calculate the value of the musicians' services
         is unnecessary; and

     (3) the CBA is deemed rejected on date the bankruptcy court
         approved the rejection.

Philip A. Pearlman, Esq., at Pearlman & Dalton, P.C., represents
M. Stephen Peters, the Chapter 7 Trustee overseeing the
Orchestra's liquidation.  Brent R. Cohen, Esq., ant S. Kato Crews,
Esq., at Rothgerber Johnson & Lyons LLP, represented the Musicians
Association in this dispute.


CWABS TRUST: Moody's Places Ba1 Rating on Class B Certificates
--------------------------------------------------------------
Moody's Investors Service assigned an Aaa rating to the senior
certificates issued by CWABS Asset-Backed Certificates Trust 2006-
BC3 and a ratings ranging from Aa1 to Ba1 to the subordinate
certificates in the deal.

The securitization is backed by Encore Credit Corp., Decision One
Mortgage Company LLC, and other mortgage lenders originated,
adjustable-rate and fixed-rate, subprime mortgage loans acquired
by Countrywide Financial Corporation.  The ratings are based
primarily on the credit quality of the loans and on protection
against credit losses from subordination, excess spread, and
overcollateralization.  The ratings also benefit from an interest-
rate swap agreement provided by Bear Stearns Financial Products
Inc.  Moody's expects collateral losses to range from 5.45% to
5.95%.

Countrywide Home Loans Servicing LP will act as master servicer.

The complete ratings are:

             CWABS Asset-Backed Certificates Trust 2006-BC3
               Asset-Backed Certificates, Series 2006-BC3

                     * Cl. 1-A, Assigned Aaa
                     * Cl. 2-A-1, Assigned Aaa
                     * Cl. 2-A-2, Assigned Aaa
                     * Cl. 2-A-3, Assigned Aaa
                     * Cl. M-1, Assigned Aa1
                     * Cl. M-2, Assigned Aa2
                     * Cl. M-3, Assigned Aa3
                     * Cl. M-4, Assigned A1
                     * Cl. M-5, Assigned A2
                     * Cl. M-6, Assigned A3
                     * Cl. M-7, Assigned Baa1
                     * Cl. M-8, Assigned Baa2
                     * Cl. M-9, Assigned Baa3
                     * Cl. B, Assigned Ba1
                     * Cl. A-R, Assigned Aaa


DANA CORP: Wants to Sell Trailer Axles Business for $37.5 Million
-----------------------------------------------------------------
Dana Corporation and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to:

   (a) approve their proposed bidding procedures for the sale of
       their Trailer Axles Business;

   (b) authorize the sale of the Trailer Axles Business to the
       successful bidder, free and clear of all liens and claims.

The Debtors' Trailer Axles Business manufactures trailer axles in
in Lugoff, South Carolina; Barrie, Ontario, Canada; and Wuxi,
China.  In 2005, the Trailer Axles Business reported sales of
$140,200,000 and an EBITDA of $3,300,000.

Dana believes that the Trailer Axles Business will require
significant investment in the future to design and sell
suspensions because of the increasing pressure to sell combined
trailer axle and suspension bundles instead of loose trailer
axles.  In addition, the Debtors expect increased price
competition in the loose trailer axle market in the future.

As a result, the Debtors determined that it makes sense to
proceed with a sale of the Trailer Axles Business at the current
time rather than to continue to own a non-core business, which
would require substantial additional investments in the near
future to remain competitive.

Subsequently, on Sept. 11, 2006, the Debtors entered into an
asset purchase agreement and certain related agreements with
Hendrickson USA, L.L.C., and its affiliates for the sale of the
Trailer Axles Business for $37,500,000.

Under the Sale Transaction:

   (a) The Debtors will segregate the operations of the Trailer
       Axles Business at the Lugoff Facility into a separate
       building from the Off-Highway operations at the Lugoff
       Facility;

   (b) Hendrickson will buy the domestic assets of the Trailer
       Axles Business $24,375,000 plus the assumption of certain
       related liabilities;

   (c) Non-Debtor Dana Canada Corporation will sell certain
       production equipment and related assets at the Barrie
       Facility to an affiliate of Hendrickson for $11,250,000;

   (d) Non-debtor Dana (Wuxi) Technology Co. Ltd., will sell
       certain production equipment located at the Wuxi Facility
       and transfer certain related customer purchase orders to a
       Chinese affiliate of Hendrickson for $1,875,000, who will
       then move the equipment to another facility;

   (e) Hendrickson will make a $3,750,000 deposit to an escrow
       account with JPMorgan Trust Company, National Association;

   (f) Hendrickson will assume certain related liabilities and
       contracts.  Hendrickson will pay the cure amounts for the
       Assumed Contracts.  Hendrickson will also enter into
       either a new lease with the landlord for the Lugoff
       Facility or a Sublease with the Debtors for the Lugoff
       Facility.

       A copy of the Assumed Contracts is available for free at:

               http://researcharchives.com/t/s?1189

   (g) Dana Canada and Hendrickson will enter into a Production
       Supply Agreement pursuant to which Dana Canada will
       produce trailer axles for Hendrickson in the Barrie
       Facility using the Canadian Assets for a period of up to
       six months at Dana's actual cost plus a 7.5% mark-up for
       the first 90 days and 10% mark-up thereafter, to provide
       Hendrickson time to relocate the Canadian Assets to the
       Lugoff Facility;

   (h) Hendrickson will reimburse Dana Canada for any scheduled
       severance obligations up to a cap of CD824,575 related to
       any workers in the Trailer Axles Business at the Barrie
       Facility who are laid off by Dana Canada at the expiration
       of the term of the Production and Supply Agreement;

   (i) Hendrickson will execute an agreement with Bendix Spicer
       Commercial Vehicle Foundation Brake, L.L.C., a joint
       venture in which the Dana Companies have an interest, to
       supply Hendrickson's brake requirements through
       Dec. 31, 2013;

   (j) The Debtors will be required to pay a $937,500 Termination
       Fee to Hendrickson if an Alternative Transaction is
       consummated, or if a sale transaction is not consummated
       before the Termination Date for any reason; and

   (k) The Debtors will reimburse all of Hendrickson's reasonable
       out-of-pocket expenses aggregating $187,500, if a Sale
       Transaction is not consummated on or before the
       Termination Date, and the APA is terminated for any reason
       other than Hendrickson's material breach of the APA.

A full-text copy of the Hendrickson APA is available for free at:

               http://researcharchives.com/t/s?1172

The Debtors will execute a Non-Interference, Non-Disclosure and
Non-Competition Agreement, which prevents them from:

   (i) engaging in the Trailer Axles Business; and

  (ii) loaning money to a competitor in the trailer axles
       business for three years in the European Union and seven
       years for the rest of the world.

To effectuate the Sale Transaction, the Debtors and Hendrickson
will also execute an Exclusive Patent License Agreement and a
Transition Services Agreement.  The Exclusive Patent License
Agreement grants Hendrickson the right to use, on an exclusive
royalty-free basis in the production of loose trailer axles and
trailer axle and trailer suspension assemblies, certain patents,
which the Debtors are not transferring ownership of under the
APA.  Under the Transition Agreement, the Debtors will provide
certain information technology services to Hendrickson until it
can get those services in place at the Lugoff Facility.

                      Bidding Procedures

The Debtors believe that a bidding process will maximize the
value received for the Assets.  The Buyer will be determined
through an auction governed by uniform bidding procedures,
Richard H. Engman, Esq., at Jones Day, in New York.

Each Potential Bidder must deliver to the Debtors, Jones Day,
Kramer Levin Naftalis & Frankel, LLP, and Shearman & Sterling,
L.L.P., a written and electronic offer no later than 4:00 p.m.,
on Nov. 10, 2006.

The written offer, among other things, must state the Bidder's
offer to purchase the Partnership Interest and must state that
the Bidder is financially capable of consummating the
transactions contemplated by modified definitive documents.

A Qualifying Bid must at least have an aggregate value of at
least equal to Hendrickson's offer plus $1,625,000 -- the
Alternative Minimum Purchase Price.

At least one business day before the Auction, the Debtors will
select the best bid to serve as the starting point for the
Auction -- the Baseline Bid.  The bidding will start at the
purchase price and terms proposed in the Baseline Bid, and
continue in increments of at least $100,000.

If more than one Qualified Bid is received by the Bid Deadline,
an Auction will be conducted at 10:00 a.m., on Nov. 17, 2006,
at the offices of Jones Day, at 222 East 41st Street, in New
York.

If no competing bids are received, a hearing to consider approval
of the sale of the Trailer Axles Business to Hendrickson will be
held on Nov. 29, 2006.

                      About Dana Corporation

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005.  (Dana Corporation Bankruptcy
News, Issue No. 21; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORPORATION: Wants Court Nod on WESCO Settlement Agreement
---------------------------------------------------------------
Dana Corporation and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to approve the
settlement agreement they entered into with WESCO Distribution
Inc. resolving WESCO's services to, and claims against the
Debtors.

On Sept. 14, 2003, Dana entered into:

   (1) a Maintenance, Repair and Operating Supplies Management
       Agreement United States with WESCO Distribution, Inc., and
       its division, Bruckner Supply; and

   (2) a Maintenance, Repair and Operating Supplies Management
       Agreement Canada with Bruckner, WESCO Distribution, and
       its Canadian subsidiary, WESCO Distribution Canada LP,
       formerly known as WESCO Distribution-Canada, Inc.

Pursuant to the Agreements, WESCO provides integrated
maintenance, repair, OEM and operating supply services across 75
of the Debtors' assembly and manufacturing locations within the
United States and Canada.

The Agreements also provide that WESCO is obligated to purchase
or source products or services for delivery to the Debtors, and
the Debtors are obligated to purchase from WESCO their
requirements for all products and services for which WESCO has
been selected to manage or supply.

In May 2006, WESCO asked the Court to lift the automatic stay to
allow it to exercise its alleged rights to prevent the automatic
renewal of the Agreements by providing 90 days' written notice to
the Debtors of its intention not to renew the Agreements.

The Debtors opposed WESCO's Lift Stay Motion.

To resolve their disputes, the parties negotiated and entered
into a settlement.  The salient terms of the Settlement Agreement
are:

   (a) The parties will execute a new MRO Management Agreement
       that will provide for the continued supply of MRO Services
       from WESCO to the Debtors for a two-year period;

   (b) WESCO Distribution, Inc., will have allowed claims against
       these Debtors:

                                           WESCO Claims
                              ------------------------------------
                                            Reclamation
                               General      Entitled     Section
                               Unsecured    to Admin.    503(b)(9)
Debtor                        Non-Priority Priority     Priority
------                        ------------ -----------  ---------
Dana Corporation              $4,046,009     $310,182  $1,718,945
Torque-Traction Manufacturing  1,702,178      246,290     628,747
Torque-Traction Integration      927,195       51,084     427,664
Coupled Products, Inc.           148,821            0      53,160
Hose & Tubing Products, Inc.     124,986            0      15,956
Dana Atlantic, LLC               106,744       22,150      30,120
Long USA, LLC                     30,266            0       9,338
Long Cooling, LLC                  4,300            0       1,599
Reinz Wisconsin Gasket, LLC        2,440            0         331

   (c) The Debtors will not seek to disallow or reduce the amount
       or priority status of the WESCO Claims;

   (d) WESCO's objection to the Debtors' Reclamation Notice will
       be deemed withdrawn with respect to the claims resolved in
       the Settlement, but not with respect to certain
       reclamation claims being asserted by certain of WESCO's
       other divisions in an amount less than $20,000;

   (e) All of the WESCO Claims will be paid or satisfied pursuant
       to a plan of reorganization or any other Court order
       generally providing for distributions to creditors if the
       Debtors' Chapter 11 cases are converted to Chapter 7 cases
       or in the case of the Debtors' administrative insolvency;

   (f) WESCO reserves its rights to assert more claims, either as
       general unsecured non-priority claims or claims entitled
       to administrative priority under Section 503(b)(9) of the
       Bankruptcy Code, provided that the claims are filed, or
       amended as applicable, not later than December 31, 2006,
       and that all liquidated Future Invoiced Claims will not
       exceed $250,000 in the aggregate;

   (g) WESCO will have no other prepetition claims relating to
       the Agreements.  WESCO will release the Debtors from all
       claims relating to the Agreements;

   (h) The Debtors will release WESCO from all prepetition claims
       arising under the Agreements other than claims for
       avoidance actions or relating to the product warranty,
       quality or confidentiality provisions of the Agreements;

   (i) WESCO and the Debtors reserve their rights to assert or
       contest claims arising postpetition;. and

   (j) WESCO's Lift Stay Motion will be rendered moot and will be
       deemed withdrawn, with prejudice, when the Court approves
       the Settlement Agreement.

Any business disruption and the attendant losses in value
suffered by the Debtors' estates and creditors could be
substantial, Corinne Ball, Esq., at Jones Day, in New York,
contends.

The execution of the New Supply Agreement and the Settlement
eliminates these concerns, and ensures the uninterrupted supply
of necessary products and services to the Debtors going forward.
Ms. Ball tells the Court that the allowance of the WESCO Claims
is a necessary condition imposed by WESCO in exchange for its
entry into the New Supply Agreement.

The Settlement represents a middle ground between the parties'
positions and provides the Debtors with a release so that WESCO
cannot seek to assert more claims against the Debtors except for
the Future Invoiced Claims, Ms. Ball avers.

On the contrary, absent a comprehensive settlement between the
parties, there is a likelihood of litigation over the priorities
of WESCO's prepetition claims.  Litigation to establish the
amount of WESCO's Reclamation Claim could result in the Debtors
incurring substantial additional expenses, without any guaranty
that the results would be better for their estates than the
results embodied in the Settlement, Ms. Ball says.

                      About Dana Corporation

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005.  (Dana Corporation Bankruptcy
News, Issue No. 21; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DANA CORP: Court Okays Pact on Sept. 15 & Oct. 15 Pension Payments
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
approved the stipulation between Dana Corporation and its debtor-
affiliates and the Official Committee of Unsecured Creditors
permitting the Debtors to make September 15 and October 15
contributions to the Debtors' employee pension plan.

As reported in the Troubled Company Reporter on Sept. 7, 2006,
the Debtors are parties to collective bargaining agreements with
unions representing some of their employees.  In connection with
the CBAs and as part of their benefit programs for certain non-
union employees, the Debtors maintain defined benefit pension
plans and periodically make contributions to those Pension Plans.

The next contributions required by the Internal Revenue Code and
the Employee Retirement Income Security Act to certain of the
Pension Plans are:

   -- $4,554,000 for Sept. 15, 2006; and
   -- $6,145,000 for Oct. 15, 2006.

The Debtors desired to make the September 15 and the October 15
Contributions.

However, the Creditors Committee asserts that postpetition
contributions to the Pension Plans on account of prepetition
services are not required under the Bankruptcy Code.

The Debtors and the Creditors' Committee have agreed to resolve
their dispute.

Accordingly, the parties agreed that the Debtors, with the
Creditors' Committee's consent, will make the September 15 and
the October 15 Contributions.  Neither the making of the
September 15 and the October 15 Contributions nor any party's
consent, will be construed as a waiver of the right of any party
to challenge the ability of the Debtors to make any future
Pension Contributions.

                      About Dana Corporation

Toledo, OH-based Dana Corp. -- http://www.dana.com/-- designs and
manufactures products for every major vehicle producer in the
world, and supplies drivetrain, chassis, structural, and engine
technologies to those companies.  Dana employs 46,000 people in 28
countries.  Dana is focused on being an essential partner to
automotive, commercial, and off-highway vehicle customers, which
collectively produce more than 60 million vehicles annually.  The
company and its affiliates filed for chapter 11 protection on
Mar. 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354).  Corinne Ball,
Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and
Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black,
Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio,
represent the Debtors.  Henry S. Miller at Miller Buckfire & Co.,
LLC, serves as the Debtors' financial advisor and investment
banker.  Ted Stenger from AlixPartners serves as Dana's Chief
Restructuring Officer.  Thomas Moers Mayer, Esq., at Kramer Levin
Naftalis & Frankel LLP, represents the Official Committee of
Unsecured Creditors.  Fried, Frank, Harris, Shriver & Jacobson,
LLP serves as counsel to the Official Committee of Equity Security
Holders.  When the Debtors filed for protection from their
creditors, they listed $7.9 billion in assets and $6.8 billion in
liabilities as of Sept. 30, 2005.  (Dana Corporation Bankruptcy
News, Issue No. 21; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


DATALOGIC INTERNATIONAL: Receives Notice of Default from Laurus
---------------------------------------------------------------
DataLogic International, Inc., received a Default Notice from
Laurus Master Fund, Ltd., relating to the $3,250,000 Secured Term
Note, as amended, between the Company and Laurus dated January 20,
2006.  Under the terms of the Note, Laurus may accelerate the
entire Note upon an event of default.  The Company discloses that
it is currently reviewing its alternatives.

The Company says that at June 30, 2006, it owed Laurus $2,940,476.
The Company further says that on Sept. 5, 2006, it made the
scheduled principal and interest payment to Laurus.

The Company relates it has inquired with Laurus as to the nature
of default but Laurus has not sent the Company a reply.

The Company believes it received the notice as a result of the its
Form 8-K that was filed on September 1, 2006.

As previously reported in the Troubled Company Reporter, the
Company, through it's wholly owned subsidiary, DataLogic
Consulting, Inc., received deposits totaling $550,000 into its
bank account on terms and conditions that cannot be fully
determined due to its failure to maintain an effective system of
internal controls.

                  Internal Control Deficiency

The Company disclosed that during the last 30 days, it has
identified some deficiencies in its internal control procedures
and is working on additional written internal control procedures
to improve the quality and timeliness of its disclosures.

On Aug. 16, 2006, the Company filed an amendment to its
registration statement on Form SB-2/A without obtaining consent
from Kabani & Company, Inc., its auditor for the year ended Dec.
31, 2004.  Accordingly, the auditors' report on the restated
consolidated financial statements as of Dec. 31, 2004 and the
consent of the auditor on the inclusion of such report should not
be considered as a part of the SB-2/A filed on Aug. 16, 2006.  The
Company has notified the Securities and Exchange Commission that
it will file another amendment to its registration statement on
Form SB-2/A.

Based in Irvine, Calif., DataLogic International, Inc.,
(OTCBB: DLGI) -- http://www.dlgi.com/-- is a technology and
professional services company providing a wide range of consulting
services and communication solutions like GPS based mobile asset
tracking, secured mobile communications and VoIP.  The Company
also provides Information Technology outsourcing and private label
communication solutions.  DataLogic's customers include U.S. and
international governmental agencies as well as a variety of
international commercial organizations.

                         Going Concern Doubt

As reported in the Troubled Company Reporter on May 17, 2006,
Corbin & Company, LLP, raised substantial doubt about DataLogic
International, Inc.'s ability to continue as a going concern after
auditing the Company's consolidated financial statements for the
year ended Dec. 31, 2005.  The auditing firm pointed to the
Company's recurring losses and need to establish profitable
operations.


DELPHI CORP: Amends Confidentiality Deal with Appaloosa, Harbinger
------------------------------------------------------------------
Appaloosa Management LP and Delphi Corporation, along with
Harbinger Capital Partners, entered into an amendment to a
Confidential Information, Standstill and Nondisclosure Agreement.

Appaloosa, Harbinger and Delphi had signed the Confidentiality
Agreement, pursuant to which Delphi may furnish to Appaloosa and
Harbinger certain non-public, confidential or proprietary
information necessary in for them to evaluate a possible
negotiated business arrangement.

Pursuant to the Amendment, Appaloosa and Harbinger will be allowed
to use certain litigation material for their evaluation of the
Debtors.

On March 15, 2006, Appaloosa, in its capacity as a stockholder,
sent a letter to Delphi's board of directors expressing concerns
over the current management in connection with the commencement
and prosecution of Delphi's Chapter 11 cases.  Appaloosa has
withdrawn the letter.

On July 31, 2006, Appaloosa engaged UBS as lead financial adviser
and lead capital markets provider and engaged Merrill Lynch as an
additional financial adviser, in connection with any potential
restructuring, acquisition or other transaction involving Delphi.
Pursuant to the engagement letters, the financial advisers are to
be given an opportunity to participate in any debt or equity
financing transaction involving Delphi that is sponsored by
Appaloosa and not financed by Appaloosa.  Harbinger is also
a party to these engagement letters.

A full-text copy of the Amendment is available at no charge
at http://researcharchives.com/t/s?117d

Based in Troy, Mich., Delphi Corporation -- http://www.delphi.com/
-- is the single largest global supplier of vehicle electronics,
transportation components, integrated systems and modules, and
other electronic technology.  The Company's technology and
products are present in more than 75 million vehicles on the road
worldwide.  The Company filed for chapter 11 protection on Oct. 8,
2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481).  John Wm. Butler
Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in
their restructuring efforts.  Robert J. Rosenberg, Esq., Mitchell
A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins
LLP, represents the Official Committee of Unsecured Creditors.
As of Aug. 31, 2005, the Debtors' balance sheet showed
$17,098,734,530 in total assets and $22,166,280,476 in total
debts.  (Delphi Bankruptcy News, Issue No. 40; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


EPICUS COMM: S. W. Hatfield Raises Going Concern Doubt
------------------------------------------------------
S. W. Hatfield, CPA, expressed substantial doubt about Epicus
Communications Group, Inc.'s ability to continue as a going
concern after it audited the Company's financials statements for
the period from Dec. 8, 2005 (date of bankruptcy settlement)
through May 31, 2006.  The auditing firm pointed to the Company's
continued operating losses and negative cash flow from operating
activities following its emergence from bankruptcy protection.

At May 31, 2006, the Company's balance sheet showed $9,353,745 in
total assets, $1,988,850 in total liabilities, $5,655,342 of
Convertible Debentures and Callable Secured Convertible Notes of
$3,750,000, resulting in a $2,040,447 stockholders' deficit.

For the period from Dec. 8, 2005 through May 31, 2006, the Company
reported a $2,669,728 net loss on $5,829,974 of revenues.

A full-text copy of the Company's Form 10-KSB is available for
free at http://researcharchives.com/t/s?1183

                           About Epicus

Headquartered in West Palm Beach, Florida, Epicus Communications,
Inc. (OTCBB: EPCG) -- http://www.ecg-us.com/-- is a holding
company with a primary goal of investing in its current
telecommunications assets.  Epicus, Inc.'s wholly-owned subsidiary
is an integrated communications provider with voice and data
service in the continuous 48 states, international long distance
in 240 countries with local exchange services in 8 southeastern
states.  The Debtors filed for chapter 11 protection on Oct. 25,
2004 (Bankr. S.D. Fla. Case Nos. 04-34915 and 04-34916).  Alvin S.
Goldstein, Esq., represents the Debtors in their restructuring
efforts.

The Court confirmed Epicus' Plan of Reorganization on Sept. 30,
2005.  On Dec. 7, 2005, the company emerged from Chapter 11
bankruptcy proceedings as a newly reorganized company.


FIREARMS TRAINING: June 30 Balance Sheet Upside-Down by $24.9 Mil.
------------------------------------------------------------------
At June 30, 2006, Firearms Training Systems Inc. reported total
stockholders' deficit of $24,931,000 from $48,381,000 in total
assets, $41,284,000 in total liabilities, and $32,028,000 in
preferred stocks.

For the three months ended June 30, 2006, the Company reported
$30,000 of net income from revenues of $16,886,000, compared to
net income of $9,000 from $16,539,000 in revenues in the three
months ended June 30, 2005.

A full-text copy of the Company's financial report for the three
months ended June 30, 2006 is available for free at:

               http://researcharchives.com/t/s?116c

Based on Suwanee, Georgia, FATS Inc. -- http://www.fatsinc.com/--  
a subsidiary of Firearms Training Systems Inc. (OTC: FATS),
provides training to professional military and law enforcement
personnel.  The Company serves domestic and international
customers.


FREESCALE SEMICON: Moody's Holds Ba1 Rating on $850 Million Notes
-----------------------------------------------------------------
Moody's Investors Service affirmed the Ba1 corporate family and
senior unsecured ratings of Freescale Semiconductor Inc. and
changed the outlook to negative from stable.  The negative outlook
reflects possible credit deterioration in light of the recent
announcement by the Company that it is currently in discussions
with parties related to a possible business transaction.

Moody's believes the potential for a leveraged buyout of Freescale
has increased.  Moody's notes that it is unlikely Freescale's
ratings would remain at the Ba1 rating level following a leveraged
buyout.  The company's ratings would likely be placed on review
for possible downgrade if the company were to make a definitive
announcement involving a leveraged transaction.  Conversely, the
ratings could be affirmed and outlook stabilized in the event the
company were to announce that it has decided not to pursue such a
transaction, presuming the company does not undertake an
alternative leveraging event.

According to Gregory Fraser, CFA, Vice President-Senior Analyst,
since Freescale is currently rated below investment grade by
Moody's, the change of control provision contained in the note
indenture is currently operative.  Accordingly, a leveraged buyout
would require the company to repurchase the senior unsecured notes
at the option of the noteholders at a price of 101% of face value
plus accrued and unpaid interest.

These ratings were affirmed:

     * Corporate Family Rating - Ba1

     * Senior Unsecured Guaranteed Notes with various
       maturities totaling $850 million - Ba1

     * Speculative Grade Liquidity Rating - SGL-1

The ratings outlook is negative.

Headquartered in Austin, Texas, Freescale designs and manufactures
embedded semiconductors for the transportation, networking and
wireless markets.


GREENPARK GROUP: Court Fixes October 20 as Claims Bar Date
----------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
set Oct. 20, 2006, as the deadline for GreenPark Group LLC and
California/Nevada Developments LLC's creditors to file proofs of
claim.

The proofs of claim must be filed with the Clerk of Court at:

       Clerk of Court
       U.S. Bankruptcy Court Central District of California
       411 West Fourth Street, Suite 2030
       Santa Ana, CA 92701

Creditors who fail to have their proofs of claim received on or
before the bar date are forever barred from asserting their
claims.

Headquartered in Seal Beach, California, GreenPark Group LLC is a
real estate developer and building contractor.  The Company and
its affiliates, California/Nevada Developments LLC, filed for
chapter 11protection on June 23, 2006 (Bankr. C.D. Calif.
Case Nos. 06-10988 & 06-10989).  Alan J. Friedman, Esq., at Irell
& Manella, LLP, represents the Debtors.  When the Debtors filed
for protection from their creditors, they estimated assets and
debts between $10 million and $50 million.


HANESBRANDS INC: Closing Three Manufacturing Facilities
-------------------------------------------------------
Hanesbrands Inc. will strengthen the competitiveness and
flexibility of its global supply chain operations by moving
production from three plants in the United States and Mexico to
lower-cost domestic, Caribbean basin and Central American
manufacturing facilities.

The company will close plants in Monclova, Mexico, Lumberton,
North Carolina, and Marion, South Carolina, that primarily make
fleece sweatshirts and pants, outerwear T-shirts, sport shirts and
sheer hosiery.  The closings will result in a reduction of
approximately 2,185 jobs at these locations.

The actions, a continuation of the company's long-term supply
chain globalization strategy, will result in multiple benefits,
including moving production to lower-cost manufacturing
facilities, improving the alignment of sewing operations with the
flow of textiles, leveraging the company's large scale in high-
volume products, and consolidating hosiery production capacity.

"These steps will strengthen our global supply chain by taking
advantage of opportunities to improve the competitiveness,
effectiveness and value of our operations," Hanesbrands CEO
Richard A. Noll said.  "A cost competitive and flexible global
supply chain plays a crucial role in contributing to our strong
cash flow, increased profitability and investment in our brands
and innovation."

Hanesbrands expects to take restructuring and related charges for
the three plant actions, including severance costs and accelerated
depreciation of fixed assets, totaling approximately $27 million
in the fiscal year, primarily in the fiscal first half that ends
Dec. 30, 2006.  Approximately $17 million of the charges will be
non-cash.

"We are making significant improvements to the Hanesbrands supply
chain in order to maximize execution, service levels, value
creation, consistency and speed to market," said Gerald Evans,
Hanesbrands executive vice president and chief global supply chain
officer.  "We regret that employees at these locations will lose
jobs, but we must design and continually update our network to
take advantage of lower-cost, more-effective production
opportunities in order to remain competitive and generate growth
that allows our overall organization to thrive."

The Monclova, Mexico, plant, which has approximately 1,700
employees, sews fleece sweatshirts and pants and outerwear T-
shirts.  Production will be moved to other company facilities in
the Caribbean basin and Central America.  Production, which will
be phased out, is expected to cease by the end of December 2006.
Also, about 80 positions at the Rosita, Mexico, fabric cutting
operation that supplies the Monclova plant will be eliminated as a
result of the production transfer.

Production at the company's Lumberton textile facility, which
produces fabric for sport shirts and outerwear T-shirts, will
cease by the end of November 2006. The plant has approximately 260
employees.  Production will be shifted to Central America and the
company's Forest City, North Carolina, plant.

The Marion plant, which has approximately 145 employees, will
cease production of sheer hosiery by the end of February 2007.
Production will be consolidated into the company's Clarksville,
Ark., hosiery production plant.

                        Hanesbrands Inc.

Hanesbrands Inc. -- http://www.hanesbrands.com/-- markets
innerwear, outerwear and hosiery apparel under consumer brands,
including Hanes, Champion, Playtex, Bali, Just My Size, barely
there and Wonderbra.  The company designs, manufactures, sources
and sells T-shirts, bras, panties, men's underwear, children's
underwear, socks, hosiery, casual wear and active wear.
Hanesbrands has approximately 50,000 employees in 24 countries.

                         *     *     *

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Moody's Investors Service assigned first time ratings to
Hanesbrands Inc.  The ratings assigned include a Ba3Corporate
Family Rating, a Ba2 rating on the Company's $2.15 billion first
lien facilities and a Ba3 rating on $450 million of second lien
facilities.

As reported in the Troubled Company Reporter on Aug. 3, 2006,
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating to Hanesbrands Inc.  The outlook on
Winston-Salem, North Carolina- based Hanesbrands is stable.

At the same time, Standard & Poor's assigned its 'BB-' senior
secured bank loan rating and '1' recovery rating to the company's
$2.150 billion first-lien bank loan facilities.  The $450 million
second-lien loan facility was assigned a 'B-' with a recovery
rating of '4'.


IASIS HEALTHCARE: Earns $15.9 Million in Quarter Ended June 30
--------------------------------------------------------------
IASIS Healthcare LLC reported net earnings for the third quarter
ended June 30, 2006 of $15.9 million, compared with $10.5 million
for the prior year quarter.  Net revenue for the third quarter was
$421 million, an increase of 7.9%, compared with $390 million for
the prior year quarter.

IASIS' results for the third quarter of 2006 include $8.3 million
of business interruption insurance proceeds received in connection
with the temporary closure and disruption of operations at The
Medical Center of Southeast Texas, in Port Arthur, Texas, as a
result of Hurricane Rita.  The Company is currently working with
its insurer to process a final settlement for these losses.  The
timing and amount of any additional proceeds have not yet been
determined.

In commenting on the quarterly results, David R. White, chairman
and chief executive officer of IASIS, said, "We are pleased with
our operating results for the third fiscal quarter.  Increases in
admissions and revenue can be attributed to our commitment to be
an operations-driven company.  This commitment includes a constant
focus on improving performance by investing capital in our
facilities, including new technologies, expanding services that
fulfill the healthcare needs of our communities and effectively
managing costs."

Effective June 1, 2006, IASIS implemented a company-wide uninsured
discount program offering discounts to all uninsured patients
receiving healthcare services, resulting in $6.8 million in
discounts being provided to uninsured patients in the third
quarter of 2006.  The Company's uninsured discount program had the
effect of reducing net revenue and the provision for bad debts by
generally corresponding amounts.  The implementation of this
uninsured discount program did not have a significant impact on
the Company's net earnings.  A table describing the impact of
adjusting for the uninsured discount program is included in this
press release in the attached Supplemental Operating Measures
Adjusted for Comparative Analysis.

Net patient revenue per adjusted admission increased 4.3% in the
third quarter, compared with the prior year quarter.  Adjusting
for the impact of uninsured discounts, net patient revenue per
adjusted admission increased 6.6% in the third quarter, compared
with the prior year quarter.  Admissions and adjusted admissions
increased 1.2% and 1.0%, respectively, in the third quarter,
compared with the prior year quarter.

Net revenue for the nine months ended June 30, 2006 remained
consistent with the same prior year period at $1.2 billion.
Adjusted EBITDA for the nine months ended June 30, 2006 was
$159.7 million, compared with $166.9 million for the same prior
year period.  Net earnings were $28.5 million for the nine months
ended June 30, 2006 compared with $36.2 million for the same prior
year period.

For the nine months ended June 30, 2006, net patient revenue per
adjusted admission increased 4.7%, compared with the same prior
year period.  Admissions and adjusted admissions decreased 1.3%
and 0.8%, respectively, for the nine months ended June 30, 2006,
compared with the same prior year period.

On July 21, IASIS announced the signing of a definitive agreement
to acquire Glenwood Regional Medical Center, a 242-bed acute care
community hospital located in West Monroe, Louisiana.  Pending
approval of the Louisiana Attorney General, passage of a public
referendum in Ward 5 of Ouachita Parish and the satisfaction of
other closing conditions, the transaction is expected to close in
the fourth calendar quarter of 2006.

On the acquisition of Glenwood Regional Medical Center, Mr. White
added, "We are particularly excited about the opportunity to
expand our operations and geographic reach into a new market and
to enhance our portfolio of hospitals with an outstanding
facility, which we believe has even greater potential."

                            About IASIS

Located in Franklin, Tennessee, IASIS Healthcare LLC --
http://www.iasishealthcare.com/-- owns and operates medium-sized
acute care hospitals in high-growth urban and suburban markets.
IASIS owns or leases 14 acute care hospitals and one behavioral
health hospital with a total of 2,199 beds in service and has
total annual net revenue of approximately $1.6 billion.  These
hospitals are located in five regions: Salt Lake City, Utah;
Phoenix, Ariz.; Tampa-St. Petersburg, Florid; three cities in
Texas, including San Antonio; and Las Vegas, Nevada.

                         *     *     *

As reported in the Troubled Company Reporter on Feb. 24, 2006,
Moody's Investors Service changed the ratings outlook of IASIS
Healthcare LLC to negative from stable and affirmed the company's
existing ratings. Ratings affirmed include the Company's B1 rated
$250 million senior secured revolving credit facility due 2010 and
$425 million senior secured term loan due 2011 and its B3 Rated
$475 million senior subordinated notes due 2014.


IMMERSION CORP: Balance Sheet Upside-Down by $20 Mil. at June 30
----------------------------------------------------------------
Immersion Corporation's balance sheet at June 30, 2006, showed
$47,380,000 in total assets and $67,446,000 in total liabilities,
resulting in a $20,066,000 stockholders' deficit.  As of June 30,
2006, Immersion had cash and cash equivalents totaling
$30.9 million.

Net loss on a Generally Accepted Accounting Principles basis for
the second quarter of 2006 was $2.4 million down 16 percent
compared to a net loss on a GAAP basis of $2.8 million for the
second quarter of 2005.  Net loss for the three months ended June
30, 2006 included stock-based compensation expense of $694,000
while net loss for the three months ended June 30, 2005 did not
include any stock-based compensation expense.

Revenues were $6.7 million for the quarter ended June 30, 2006
compared to revenues of $6.2 million for the second quarter of
2005.

Revenues were $12.7 million for the six months ended June 30, 2006
compared to revenues of $12 million for the first six months of
2005.  Net loss on a GAAP basis for the first six months of 2006
was $5.3 million, down 11 percent compared to a net loss on a GAAP
basis of $6 million for the first six months of 2005.

"Our loss for the quarter, excluding non cash stock compensation,
is the lowest quarterly loss since going public in 1999 and
reflects our continued efforts to achieve profitability," said
Victor Viegas, Immersion CEO and president.  "Our overall revenue
growth of 7 percent results from a 28 percent growth in our non-
gaming businesses and a 46 percent decrease in our gaming revenue
mainly due to the downturn of third-party controller sales in the
video game industry.

"In June, we announced our new TouchSense(R) technology for next-
generation video console systems.  The new vibration feedback
technology provides a far more engaging, realistic, and immersive
tactile experience that matches the realism expected of next-
generation high-definition graphics and high-fidelity sound.  This
new TouchSense technology can work alongside motion and tilt
sensing and provides backward compatibility for existing dual-
motor systems, allowing an implementation path at any stage of
product lifecycle, even after a console model has launched.

"In the past three months, several significant advances have been
made in our Mobility business.  We signed a license agreement for
our VibeTonz(R) System with LG Electronics, the number four mobile
handset manufacturer in the world and the top producer of handsets
based on CDMA technology.  In addition, we continue to build
support from wireless operators such as SK Telecom, the leading
Korean mobile operator.  SKT recently launched a VibeTonz-only
content service called VibeBell, offering over 1,000 VibeTonz-
enhanced music clips that subscribers can use to personalize their
phones.  SKT's first handset to support this service is the newly-
released Samsung SCH-B450, which uses the VibeTonz System to play
touch effects embedded in games and MPEG-4 media.  Also in June,
we introduced an important new capability of our VibeTonz System,
the enablement of tactile feedback in touchscreens for
smartphones, the fastest-growing products in the handset market."

                        About Immersion

Immersion Corporation -- http://www.immersion.com/-- develops,
licenses and markets digital touch technology and products.
Immersion's technology is deployed across automotive,
entertainment, medical training, mobility, personal computing, and
three-dimensional simulation markets. Immersion's patent portfolio
includes over 600 issued or pending patents in the United States
and other countries.


INDIGO BRIDGES: Case Summary & Largest Unsecured Creditor
---------------------------------------------------------
Debtor: Indigo Bridges, LLC
        632 West Buffalo Street
        Ithaca, NY 14851

Bankruptcy Case No.: 06-62211

Type of Business: The Debtor is a real estate holding company.

Chapter 11 Petition Date: September 13, 2006

Court: Northern District of New York (Utica)

Judge: Stephen D. Gerling

Debtor's Counsel: Peter D. Grubea, Esq.
                  Law Office of Peter D. Grubea
                  482 Delaware Avenue
                  Buffalo, NY 14202
                  Tel: (716) 853-1366
                  Fax: (716) 853-1378

Total Assets: $925,001

Total Debts:  $1,209,283

Debtor's Largest Unsecured Creditor:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Aeon Development, LLC         Unsecured Loan            $500,000
632 W. Buffalo St.
Ithaca NY 14851


INROB TECH: Has $477,386 Working Capital Deficit at June 30
-----------------------------------------------------------
InRob Tech, Ltd., filed its second quarter financial statements
for the three months ended June 30, 2006, with the Securities and
Exchange Commission on Aug. 14, 2006.

For the three months ended June 30, 2006, the Company earned
$69,545 of net income on $478,617 of net revenues compared to a
$48,825 net loss on $405,523 of net revenues in 2005.

The Company's June 30 balance sheet showed strained liquidity with
$1,179,816 in total current assets available to pay $1,657,202 in
total current liabilities coming due within the next 12 months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1175

                        Going Concern Doubt

Davis Accounting Group P.C., in Cedar City, Utah, expressed doubt
about Inrob Tech Ltd.'s ability to continue as a going concern
after auditing the Company's 2005 financial statements.  The
auditing firm pointed to the Company's operating losses and
negative working capital at Dec. 31, 2006.

Headquartered in Las Vegas, Nevada, InRob Tech, Ltd., provides
engineering products and services for the maintenance of
equipment, and the integration and production of advanced wireless
control solutions for unmanned ground vehicle robots.  The remote
control systems of the company serve military and law enforcement
UGV applications and control solutions. The company also serves
the civilian applications market, which includes nuclear plant
maintenance, inspection and decommissioning, the demolition
industry, and firefighting and rescue services.


INSITE VISION: June 30 Balance Sheet Upside-Down by $6.8 Million
----------------------------------------------------------------
InSite Vision Incorporated filed its second quarter financial
statements for the three months ended June 30, 2006, with the
Securities and Exchange Commission on Aug. 14, 2006.

For the three months ended June 30, 2006, the Company incurred a
$5.1 million net loss on zero revenue compared to a $4.2 million
net loss on $1,000 of net revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $1.3 million
in total assets and $8.1 million in total liabilities, resulting
in a $6.8 million stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $949,000 in total current assets available to pay $8 million
in total current liabilities coming due within the next 12 months.

As of June 30, 2006, the Company's contractual obligations under
notes payable increased to $6.6 million from $4.6 million at Dec.
31, 2005, due to the issuance of the January 2006 Senior Secured
Note, and our purchase obligations decreased to approximately
$700,000 from $2.2 million at Dec. 31, 2005.

At June 30, 2006, the Company's cash and cash equivalents balance
was $800,000.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1176

                        Going Concern Doubt

Burr, Pilger & Mayer LLP in Palo Alto, California, expressed doubt
about InSite Vision's ability to continue as a going concern after
auditing the Company's 2005 financial statements.  The auditing
firm pointed to the Company's recurring losses from operations at
Dec. 31, 2006.

Headquartered in Alameda, California, InSite Vision Incorporated -
- http://www.insitevision.com/-- is an ophthalmic company focused
on ocular infections, glaucoma and retinal diseases.  The
Company's lead product is AzaSite, which targets infections of the
eye.  AzaSite contains the drug azithromycin, a broad-spectrum
antibiotic formulated with DuraSite(R), InSite Vision's patented
drug-delivery vehicle, which offers the benefit of a low-dosing
regimen, attractive to both the eye-care patient and physician.
The Company intends to seek to expand this "technology platform"
to include additional indications and product options for the
worldwide market.


INTERSTATE BAKERIES: Court OKs SSI as Executive Search Consultant
-----------------------------------------------------------------
The U.S. Bankruptcy Court for the Western District of Missouri
authorized Interstate Bakeries Corporation and its debtor-
affiliates to:

   (a) employ SSI (U.S.), Inc., dba Spencer Stuart as their
       executive search consultant; and

   (b) utilize estate funds to pay the fees and expenses of
       Spencer Stuart.

As reported in the Troubled Company Reporter on Aug. 9, 2006, the
Debtors have engaged Spencer Stuart, to serve as their
executive search consultant to conduct a search for individuals to
serve as chief executive officer for the company.

As search consultant, Spencer Stuart will:

   (a) participate in meetings with the Debtors' key executives
       to gain as much knowledge of the Debtors' organization and
       management;

   (b) prepare a Position and Candidate Specification, which
       includes the position description and specifications for
       the ideal candidate;

   (c) develop a basic search strategy and a list of target
       organizations on which the primary thrust of its search is
       expected to be focused;

   (d) identify, contact, screen, interview and evaluate prospect
       candidates;

   (e) submit detailed candidate reports to the Debtors; and

   (f) participate as facilitator after a candidate has been
       selected.

The Debtors believed that its engagement of Spencer Stuart relates
to the ordinary course of their businesses and thus can be
implemented without Court approval.

The Debtors will pay Spencer Stuart:

   -- a fee equal to 1/3 of every hired placement's first year's
      total cash compensation, including any potential first-year
      bonus;

   -- a $400,000 Retainer Fee, which will be paid in
      installments;

   -- 10% of the Retainer Fee on the three-month retainer period
      for search-related expenses; and

   -- all necessary out-of-pocket expenses.

If a person hired for CEO is terminated for cause or resigns
without good reason within one year of employment, Spencer Stuart
agreed to conduct a replacement search for no additional fee.

John Wood, a consultant at Spencer Stuart, assured the Court that
his firm does not represent any interest adverse to the Debtors'
estates, and is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.

J. Eric Ivester, Esq., at Skadden Arps Slate Meagher & Flom LLP,
in Chicago, Illinois, contended Spencer Stuart's advice and
services will maximize the value of the Debtors' estates.

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due August 15, 2014 on August 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 47; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


INTERSTATE BAKERIES: Court OKs Joint Interest Pact With 3 Parties
-----------------------------------------------------------------
Judge Venters of the U.S. Bankruptcy Court for the Western
District of Missouri approves the Joint Interest Agreements among
Interstate Bakeries Corporation and its debtor-affiliates, the
Official Committee of Unsecured Creditors, JPMorgan Chase Bank,
N.A., and the Official Committee of Equity Security Holders.

Judge Venters rules that if the Joint Interest Agreement Parties
are legally required by the Court, any other court of competent
jurisdiction or by a government, regulatory or administrative
agency to disclose any of the Information, the party will provide
prompt written notice to the Debtors so that the Debtors may seek
a protective order or waive compliance with the Agreements.

As reported in the Troubled Company Reporter on Aug. 29, 2006, the
Debtors agree to share confidential information with JPMorgan
and the Equity Committee.  In return, JPMorgan and the Equity
Committee agree to maintain the information as confidential.

To facilitate communication with JPMorgan and the Equity
Committee regarding the Investigations and their interests, the
parties signed an agreement essentially similar to the Agreement
signed by the Debtors and the Official Committee of Unsecured
Creditors.

Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh baked
bread and sweet goods, under various national brand names,
including Wonder(R), Hostess(R), Dolly Madison(R), Baker's Inn(R),
Merita(R) and Drake's(R). The Company employs approximately
32,000 in 54 bakeries, more than 1,000 distribution centers and
1,200 thrift stores throughout the U.S. The Company and seven of
its debtor-affiliates filed for chapter 11 protection on
September 22, 2004 (Bankr. W.D. Mo. Case No. 04-45814). J. Eric
Ivester, Esq., and Samuel S. Ory, Esq., at Skadden, Arps, Slate,
Meagher & Flom LLP, represent the Debtors in their restructuring
efforts. When the Debtors filed for protection from their
creditors, they listed $1,626,425,000 in total assets and
$1,321,713,000 (excluding the $100,000,000 issue of 6.0% senior
subordinated convertible notes due August 15, 2014 on August 12,
2004) in total debts. (Interstate Bakeries Bankruptcy News, Issue
No. 47; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


J. CREW: Equity Deficit at July 29 Narrows to $83 Million
---------------------------------------------------------
J. Crew Group, Inc., filed is financial report for the quarter
ended July 29, 2006 on Form 10-Q with the Securities and Exchange
Commission on Sept. 11, 2006.

Revenues for the second quarter of fiscal 2006 ended July 29, 2006
increased by $39.8 million, or 17.4%, to $269.2 million from
$229.4 million in the second quarter of fiscal 2005.

Net income decreased by $1.7 million in the second quarter of 2006
to breakeven from $1.7 million in the second quarter of 2005.

Revenues for the first half of fiscal 2006 increased by
$70 million or 15.9% to $509.9 million from $439.9 million in the
first half of fiscal 2005.

Net income increased by $1.2 million in the first half of 2006 to
$7.8 million from $6.6 million in the first half of 2005.

The Company's balance sheet at June 29, 2006 showed total assets
of $362 million and total liabilities of $445 million resulting in
a total shareholders' deficit of $83 million.  Total shareholders'
deficit at Jan. 28, 2006 stood at $588 million.

Cash provided by operating activities in the first half of fiscal
2006 was $36.4 million and consisted of net income of $7.8 million
and non-cash adjustments of $48.2 million, reduced by an increase
in working capital of $19.6 million.  The increase in working
capital consisted primarily of an increase of $18.4 million in
inventories as a result of anticipated sales increases in the
second half of 2006.

As of July 29, 2006 the Company had $72.5 total outstanding
letters of credit and $250 million in total long term debt.

A full text-copy of J. Crew Group, Inc.'s financial report for the
thirteen weeks ended July 29, 2006 may be viewed at no charge at
http://ResearchArchives.com/t/s?1180

Based in New York City, J. Crew Group, Inc.,
-- http://www.jcrew.com/-- is a fully integrated multi-channel
specialty retailer of women's and men's apparel and accessories.
J.Crew products are distributed through the Company's 166 retail
and 49 factory stores, the J. Crew catalog, and the Company's
Internet website.


J.P. MORGAN: Moody's Places Ba1 Rating on Class M-9 Certificates
----------------------------------------------------------------
Moody's Investors Service assigned an Aaa rating to the senior
certificates issued by JP Morgan Mortgage Acquisition Trust
2006-WF1, and ratings ranging from Aa1 to Ba1 to the subordinate
certificates in the deal.

The securitization is backed by Wells Fargo Bank, N.A. fixed-rate
Alt-A mortgage loans acquired by JP Morgan Mortgage Acquisition
Corp.  The ratings are based primarily on the credit quality of
the loans, and on the protection from subordination, excess
spread, overcollateralization and mortgage insurance provided by
PMI Mortgage Insurance Co.  After taking into account the benefits
of mortgage insurance, Moody's expects collateral losses to range
from 1.40% to 1.60%.

Wells Fargo Bank, N.A., will act as master servicer.  Moody's has
assigned Wells Fargo Bank, N.A., its top servicer quality of SQ1
as master servicer.

Issuer: J.P. Morgan Mortgage Acquisition Trust 2006-WF1

       Mortgage Pass Through Certificates, Series 2006-WF1

                    * Cl. A-1-A, Assigned Aaa
                    * Cl. A-1-B, Assigned Aaa
                    * Cl. A-2-A, Assigned Aaa
                    * Cl. A-2-B, Assigned Aaa
                    * Cl. A-3-A, Assigned Aaa
                    * Cl. A-3-B, Assigned Aaa
                    * Cl. A-4, Assigned Aaa
                    * Cl. A-5, Assigned Aaa
                    * Cl. A-6, Assigned Aaa
                    * Cl. P, Assigned Aaa
                    * Cl. A-R, Assigned Aaa
                    * Cl. M-1, Assigned Aa1
                    * Cl. M-2, Assigned Aa2
                    * Cl. M-3, Assigned Aa3
                    * Cl. M-4, Assigned A1
                    * Cl. M-5, Assigned A2
                    * Cl. M-6, Assigned Baa1
                    * Cl. M-7, Assigned Baa2
                    * Cl. M-8, Assigned Baa3
                    * Cl. M-9, Assigned Ba1


JOURNAL REGISTER: High Leverage Prompts Moody's Ba3 Debt Ratings
----------------------------------------------------------------
Moody's Investors Service downgraded these ratings for Journal
Register Company:

     * $375 million senior secured revolving credit facility,
       due 2012 -to Ba3 from Ba2

     * $625 million senior secured term loan A, due 2012
       -- to Ba3 from Ba2

     * Corporate Family rating -- to Ba3 from Ba2

The rating outlook was changed to stable from negative.

The downgrade reflects continuing softness in the Company's
business which has resulted in lower cash flow generation and
higher leverage than Moody's had expected.  In addition, the
downgrade incorporates recent weakness in newspaper segment
advertising, continuing event risk (evidenced by Journal
Register's recent share repurchases and acquisition activity) and
the Company's debt burden which remains in excess of 5 times
EBITDA.

Ratings are supported by the Company's positive free cash flow
generation, its focus on suburban and community newspaper
publishing, the diversification of its subscriber and advertiser
base and the severability of its assets which can provide the
company with an alternative source of liquidity.  Many of Journal
Register's publications enjoy a highly defensible local market
share, with little or no direct competition.

The change in the rating outlook to stable largely reflects the
greater degree of financial and operational latitude, which is
accommodated in the lowered Ba3 rating category.

Journal Register's leverage stood at 6.1 times debt to EBITDA for
the LTM period ended June 2006, according to Moody's standard
analytic adjustments.  Journal Register has the ability to reduce
leverage from organic cash flow generation and from the proceeds
of its recently announced sale of certain New England properties.
However, Moody's considers that leverage reduction below 5 times
debt to EBITDA is unlikely in the intermediate term.

Like its rated newspaper peers, Journal Register suffers from weak
spending on printed advertising, declining newspaper circulation,
and the competitive threat posed by alternative advertising media,
including online advertising.

Journal Register Company is a newspaper publisher, based in
Yardley, Pennsylvania.  The company recorded sales of $550 million
over the last twelve months ended June 2006.


JUNIPER NETWORKS: Inks Strategic Partnership with Symantec
----------------------------------------------------------
Juniper Networks, Inc. and Symantec Corp. have entered into a
broad strategic partnership focused on delivering best-in-class,
integrated security solutions to enterprise customers.

The agreement includes a commitment to develop unparalleled
Unified Threat Management solutions and Intrusion Protection
Systems; dedicated plans to co-operatively build standards-based,
integrated access control and endpoint compliance solutions;
collaboration between Juniper's J-Security Team and Symantec's
Global Intelligence Network to deliver security and threat
research; and participation in cooperative sales and marketing
efforts.

"This partnership brings together two very complementary companies
focused on both network and endpoint security," said David
Passmore, research director at Burton Group.  "Juniper and
Symantec will simplify choice for enterprises looking to purchase
high-performance network security solutions that scale, and reduce
the complexity involved in assembling solutions for endpoint
compliance."

Juniper and Symantec will dedicate engineering resources to
enhance Juniper's Unified Threat Management and Intrusion
Detection and Prevention products.  Juniper's Integrated Security
Platforms will include Symantec's award-winning security content,
including its anti-spam, IDP/IPS signatures, and vulnerability
information and research in the near term.

Longer term, the companies will collaborate on the inclusion of
antivirus and threat protection.  By expanding the support for
Symantec content on Juniper devices, customers will benefit from
simplified network topologies in the form of less devices
(especially in branch environments) and the integration of best-
in-class security and networking capabilities.

Juniper and Symantec also plan to co-operatively enhance and
integrate their existing endpoint compliance and access control
solutions by collaborating to build best-in-class, standards-based
network enforcement and endpoint compliance solutions.  The
solutions will leverage each company's core competencies in
endpoint and network security, and will be marketed and sold by
both companies.

As part of this effort, Juniper and Symantec will continue to work
together to support the Trusted Network Connect open standard, a
set of non-proprietary network access control specifications that
enables the application and enforcement of security requirements
for endpoints connecting to a network.

"Customers are continuously challenged by business downtime caused
by an elevated threat environment.  Security requirements are
becoming pervasive across all components of the IT infrastructure,
while security complexity and costs are mounting," said Scott
Kriens, chairman and CEO of Juniper Networks.  "We are reshaping
the security landscape with Symantec.  The industry's best network
security and information security companies are working together
to deliver best-in-class, standards-based solutions that can be
implemented cost-effectively across the business and protect
existing investments."

"The security landscape has changed dramatically over the past 18
months.  As a result, our customers are demanding a more
comprehensive approach to security and management, with more
attention being placed on expanding the ability to control
networks," said John W. Thompson, chairman and CEO of Symantec.
"This partnership will leverage each company's key technologies to
deliver complete solutions to help organizations control which
devices can access their networks.  Further, this agreement brings
together the industry's best security teams to anticipate and
protect against today's sophisticated threats."

Juniper's J-Security worldwide team will team with Symantec's
industry-leading Global Intelligence Network on security and
threat research, and collaborate on creating IPS signatures for
Juniper's award-winning IDP appliances to help customers better
protect their networks against threats.  The two teams will work
together in identifying new and emerging network and application
threats, and enabling the combined solutions with leading threat
protection content.

The partnership involves cooperative sales and marketing efforts
between Juniper and Symantec.  Symantec will recommend Juniper's
current and future Integrated Security and IDP appliances to new
and existing enterprise customers, including existing Managed
Security Services customers.  Juniper will market and sell
Symantec security content as a component of its Integrated
Security Solutions portfolio.  Juniper and Symantec will also
explore additional opportunities for further collaboration in
relevant markets and technologies to further provide customers
with best-in-class integrated security solutions.

                           About Symantec

Headquartered in Cupertino, Calif., Symantec --
http://www.symantec.com/-- provides solutions to help individuals
and enterprises assure the security, availability, and integrity
of their information.  Symantec has operations in more than 40
countries.

                        About Juniper Networks

Juniper Networks Inc. -- http://www.juniper.net/-- enables secure
and assured communications over a single IP network.  The
company's IP platforms enable customers to support many different
services and applications at scale.

                          *     *     *

As reported in the Troubled Company Reporter on May 24, 2006,
Standard & Poor's Rating Services placed ratings on Juniper
Networks Inc. including its 'BB' long-term and 'B-1' short-term
corporate credit ratings, on CreditWatch with negative
implications.


KRISPY KREME: Sees $110 Million of Revenues in Second Fiscal Qtr.
-----------------------------------------------------------------
Krispy Kreme Doughnuts, Inc., expects, on a preliminary basis, to
report revenues of approximately $110 million for the second
quarter of fiscal 2007, which ended July 30, 2006, compared to
revenues of approximately $140 million for the second quarter of
fiscal 2006.

The decrease in revenues reflects a decline in the number of
Company stores as well as lower sales to franchisees by the
Company's Manufacturing and Distribution segment.

Systemwide sales fell approximately 15% in the second quarter of
fiscal 2007 compared to the second quarter of the prior year
primarily due to an approximately 17% decrease in the number of
factory stores to 303 (total stores, including satellites,
decreased approximately 6%).

Average weekly sales per factory store (which is computed by
dividing sales from all factory and satellite stores by the number
of factory stores in operation) increased approximately 8% and 5%
in Company stores and systemwide, respectively, compared to the
second quarter of fiscal 2006.

Average weekly sales per store (which is computed by dividing
sales from all factory and satellite stores by the aggregate
number of all such stores in operation) increased approximately 7%
for Company stores and decreased approximately 8% systemwide,
compared to the second quarter of fiscal 2006.

Systemwide average sales per store declined while Company average
sales per store rose principally because the growth in satellite
stores, which have lower average sales than factory stores,
largely has been concentrated in franchise stores and not in
Company stores.

"We continue to make progress in Krispy Kreme's turnaround," said
Daryl Brewster, President and Chief Executive Officer.  "In the
past quarter we resolved several legal disputes with franchisees.
We reduced our guarantees of franchisee obligations from
approximately $22 million to approximately $14 million and
successfully executed pricing to offset rising input costs.  In
the United States, we saw signs of stability in company stores as
evidenced by average weekly sales trends.  We also advanced our
international expansion plans with the signing of franchisees in
six new markets."

The Company noted that its financial results continue to be
adversely affected by the substantial costs associated with the
legal and regulatory matters previously disclosed by the Company.
The Company expects to report a net loss for the second quarter of
fiscal 2007.

                          Financial Position

The Company believes that cash flow from operations, combined with
other anticipated cash inflows, will be sufficient to meet its
liquidity needs.  As of July 30, 2006, the Company's cash balance
was approximately $28 million and its indebtedness was
approximately $121 million, compared to approximately $16 million
and $123 million, respectively, at Jan. 29, 2006.  The January
amounts exclude amounts relating to Glazed Investments, its sole
consolidated franchisee at the time.  As of July 30, 2006, the
Company had no consolidated franchisees.

                        About Krispy Kreme

Founded in 1937 in Winston-Salem, North Carolina, Krispy Kreme
(NYSE: KKD) -- http://www.krispykreme.com/-- is a branded
specialty retailer of premium quality doughnuts, including the
Company's signature Hot Original Glazed.  There are currently
approximately 320 Krispy Kreme stores and 80 satellites operating
systemwide in 43 U.S. states, Australia, Canada, Mexico, the
Republic of South Korea and the United Kingdom.

Headquartered in Winston-Salem, North Carolina, Freedom Rings LLC
is a majority-owned subsidiary and franchisee partner of Krispy
Kreme Doughnuts, Inc., in the Philadelphia region.  Freedom Rings
operates six out of the approximately 360 Krispy Kreme stores and
50 satellites located worldwide.  The Company filed for chapter 11
protection on Oct. 16, 2005 (Bankr. D. Del. Case No. 05-14268).
M. Blake Cleary, Esq., Margaret B. Whiteman, Esq., and Matthew
Barry Lunn, Esq., at Young Conaway Stargatt & Taylor, LLP,
represent the Debtor in its restructuring efforts.  When the
Debtor filed for protection from its creditors, it estimated
$10 million to $50 million in assets and debts.

Headquartered in Oak Brook, Illinois, Glazed Investments, LLC, is
a 97%-owned unit of Krispy Kreme.  Glazed filed for chapter 11
protection on Feb. 3, 2006 (Bankr. N.D. Ill. Case No. 06-00932).
The bankruptcy filing will facilitate the sale of 12 Krispy Kreme
stores, as well as the franchise development rights for Colorado,
Minnesota and Wisconsin, for approximately $10 million to Westward
Dough, the Krispy Kreme area developer for Nevada, Utah, Idaho,
Wyoming and Montana.  Daniel A. Zazove, Esq., at Perkins Coie LLP
represents Glazed in its restructuring efforts.  When Glazed filed
for protection from its creditors, it estimated assets and debts
between $10 million to $50 million.

KremeKo, Inc., Krispy Kreme's Canadian franchisee, is currently
restructuring under the Companies' Creditors Arrangement Act.
Pursuant to the Court's Initial Order, Ernst & Young Inc. was
appointed as Monitor in KremeKo's CCAA proceedings.  The Monitor
is attempting to sell the KremeKo business.


LGB INC: Files Disclosure Statement in California
-------------------------------------------------
LGB, Inc., delivered a disclosure statement explaining its Chapter
11 Plan of Reorganization to the U.S. Bankruptcy Court for the
Eastern District of California on Aug. 25, 2006.

                       State Court Claims

The Debtor relates that if it prevails on its claims in the State
Court Action before Dec. 31, 2011, more than $15,000,000 in cash
and property will be released to it for paying the estimated
$5,000,000 in prepetition and postpetition liabilities of the
estate.  The Debtor anticipates that there will be an additional
$1.9 million in net proceeds for payment to creditors and equity
shareholders, assuming that it successfully defends against
Atwood's claim of an interest in the Kalihi Properties, and will
be in the position to sell Kalihi Properties.

                       Treatment of Claims

Under the Plan, All Administrative Priority Claims will be paid in
full.

Holders of Allowed Priority Tax Claims, totaling $12,128, will be
paid in full by deferred cash payments within five years of its
bankruptcy filing date.  From and after the effective date, those
claims will bear interest at the Federal Funds Target Rate by the
Federal Reserve Bank of New York.  The balance owed on said claims
will be paid in sixteen equal quarterly installments of principal
and interest, with the first payment being due on the 15th day of
the first full calendar quarter following the effective date.
Debtor may, at its sole discretion, pre-pay these tax claims.

Class 1 Allowed Claims are comprised of Allowed Claims arising out
of one or more joint ventures with the Debtor, which claims are
being litigated in the State Court Action.  To the extent there
are one or more joint ventures by and between the Debtor and the
Class 1 Creditors, and such joint ventures constitute an
"executory contract," such executory contracts will be assumed
under the Plan.  The Class 1 Claims, which existed against the
Debtor or any interest of the Debtor in real or personal property,
will remain unaltered as a result of the confirmation of the Plan.

Class 2 Allowed Unsecured Claims will be paid in full plus
interest.  Claims under Class 2 will be paid pro-rata from the
first available net income upon: resolution of the State Court
Action, sale or transfer of any interest in the Kalihi Properties,
or a combination of both.

Holders of interests in the Debtor will get nothing under the
plan.

A full-text copy of the Disclosure Statement is available for a
fee at:

   http://www.researcharchives.com/bin/download?id=060913214559

                         About LGB Inc.

Headquartered in Grass Valley, California, LGB, Inc., filed for
chapter 11 protection on Apr. 27, 2006 (Bankr. E.D. Calif. Case
No. 06-21340).  George C. Hollister, Esq., at Hollister Law Corp.,
represents the Debtor.  When the Debtor filed for protection
from its creditors, it estimated assets between $10 million and
$50 million and estimated debts between $100,000 and $500,000.


LGB INC: Court Sets Disclosure Statement Hearing on September 25
----------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of California
will convene at 11 a.m. on Sept. 25, 2006, in the U.S. Federal
Courthouse, 501 I Street, 7th Floor in Sacramento, California, to
consider on the adequacy of the 11 Disclosure Statement explaing
LGB, Inc.'s Chapter 11 Plan of Reorganization.

Headquartered in Grass Valley, California, LGB, Inc., filed for
chapter 11 protection on Apr. 27, 2006 (Bankr. E.D. Calif. Case
No. 06-21340).  George C. Hollister, Esq., at Hollister Law Corp.,
represents the Debtor.  When the Debtor filed for protection
from its creditors, it estimated assets between $10 million and
$50 million and estimated debts between $100,000 and $500,000.


MARSH & MCLENNAN: Earns $172 Million in Quarter Ended June 30
-------------------------------------------------------------
Marsh & McLennan Companies, Inc., reported $172 million of net
income earned for the second quarter ended June 30, 2006, compared
with $166 million last year.  Consolidated revenues for the
quarter were $3 billion, unchanged from the 2005-second quarter.

Income from continuing operations was $173 million, compared with
$160 million in the second quarter of 2005.  Stock option expense
was $27 million in the second quarter of 2006.  Stock option
expense was not recorded in the first half of 2005 due to MMC's
adoption of SFAS No. 123(R) entitled "Share-Based Payment" on
July 1, 2005.

For the first six months of 2006, consolidated revenues of
$6 billion were essentially flat, compared with last year.  Net
income was $588 million, compared with $300 million in 2005.

Results from discontinued operations, net of tax, were $177
million, compared with $11 million in 2005.  Income from
continuing operations was $411 million, compared with
$289 million, last year.  Stock option expense for the first six
months of 2006 was $67 million.

A number of noteworthy items affected second quarter and six
months results in 2006 and 2005.  Second quarter 2006 noteworthy
items totaled $46 million.  These items included restructuring and
related costs; legal and regulatory costs primarily related to
market service agreements; and other items indicated in the
attached supplemental schedules.  For the first six months of
2006, these noteworthy items totaled $109 million.

Michael G. Cherkasky, president and chief executive officer of
MMC, said "Results for the quarter were mixed.  Marsh achieved
significant improvement in both operating margin and new business
development, particularly in North America, which had improved
retention rates from last year.  However, underlying revenues in
Europe did not meet expectations, due primarily to lower client
retention levels.  Guy Carpenter, Kroll, and Mercer Specialty
Consulting all reported excellent results, with double-digit
growth in revenues and profitability.  Mercer Human Resource
Consulting increased revenues, but profitability was
disappointing.  Putnam performed as expected.  We are encouraged
about the positive trends in all of our businesses, except for
profitability in Mercer HR, which we are addressing."

                  Risk and Insurance Services

Risk and insurance services revenues declined 5% in the second
quarter to $1.3 billion, or 3% on an underlying basis.  Half of
this decline was due to the planned reduction in sales of
investments held through Risk Capital Holdings, which had second
quarter revenues of $28 million, compared with $54 million in the
prior year period.

Operating income increased markedly throughout the first half of
the year, primarily reflecting expense savings from previously
announced restructuring efforts.  The operating margin for the
first half of 2006 improved to 14.4% from 7.4% last year.

Adjusting for the impact of noteworthy items and 2006 stock option
expense, segment operating margin was 18.5% in the first half of
2006, compared with 15.7% in the same period of 2005.

Marsh revenues declined 6% in the second quarter to $1.1 billion,
or 4% on an underlying basis.  Marsh's new business grew 8%
globally, led by 18% growth in the United States.  In Europe, new
business development was essentially flat, compared with last
year's strong second quarter.  European underlying revenues
declined, primarily in Continental Europe.  Despite the sharp
increase in U.S. property insurance rates in coastal areas,
overall property and casualty insurance rates continued to decline
in the quarter.

Guy Carpenter revenues rose to $214 million in the second quarter,
an increase of 12%.  This reflected strong new business levels in
the quarter, continuing the performance of the first quarter.  The
substantial increase in U.S. coastal property catastrophe premium
rates was offset by limited market capacity and higher risk
retention by clients.

                    Risk Consulting and Technology

Kroll revenues increased 14% to $275 million in the second
quarter, or 12% on an underlying basis.  This strong performance
was led by the corporate advisory and restructuring business,
which increased revenues due to client success fees on completed
engagements.  Technology services, Kroll's largest business unit,
reported a 5% increase in underlying revenues.  This unit includes
Kroll Ontrack's electronic discovery business, which responded
successfully to the pricing pressures experienced in the first
quarter. Kroll's operating income for the quarter increased 11%
over 2005.

                           Consulting

Consulting revenues increased 8% to $1 billion in the second
quarter.  Mercer Human Resource Consulting increased revenues 4%
to $751 million.  Mercer HR's largest business, retirement
consulting, increased underlying revenues 2% in the quarter.
Human capital grew revenues 15% and HR Services 5%.  Health and
benefits revenues declined 4%.  Despite Mercer HR's revenue
growth, an increase in compensation expenses, including increased
staff levels, contributed to a decline in segment profitability
for the quarter.

Mercer Specialty Consulting revenues grew 17% to $297 million in
the second quarter, reflecting continued excellent performance in
all businesses.  Mercer Oliver Wyman's financial services and risk
consulting increased underlying revenues 19%, Mercer Management
Consulting's strategy and operations grew revenues 11%, and
economic consulting rose 14%.  Based on this strong revenue
growth, Mercer Specialty Consulting reported a marked increase in
profitability.

                         Investment Management

Putnam revenues declined 10% to $339 million in the second
quarter.  Average assets under management were $185 billion,
compared with $196 billion in the second quarter of 2005.  Ending
assets on June 30, 2006 were $180 billion, comprising $119 billion
in mutual fund assets and $61 billion in institutional assets.
Net redemptions were $6 billion, which included $2.8 billion due
to the ending of Putnam's alliance with its Australian partner.

                             Other Items

MMC's financial position remains strong. During the second
quarter, MMC made its second scheduled payment, in the amount of
$255 million, for restitution to policyholder clients.  Despite
this, total net debt, which is total debt less cash and cash
equivalents, was $3.9 billion at the end of the second quarter,
essentially the same amount as at the end of the first quarter.

MMC's consolidated effective tax rate in the second quarter was
35.3%, compared with 29.9% in the second quarter of 2005.  The
rate in last year's second quarter reflected the favorable
resolution of certain tax return audit issues.

                      About Marsh & McLennan

Marsh & McLennan Companies, Inc. -- http://www.mmc.com/-- is a
global professional services firm with annual revenues of
approximately $12 billion.  It is the parent company of Marsh, the
world's leading risk and insurance services firm; Guy Carpenter,
the world's leading risk and reinsurance specialist; Kroll, the
world's leading risk consulting company; Mercer, a major global
provider of human resource and specialty consulting services; and
Putnam Investments, one of the largest investment management
companies in the United States.  Approximately 55,000 employees
provide analysis, advice, and transactional capabilities to
clients in over 100 countries.

                          *     *     *

As reported in the Troubled Company Reporter on Aug. 25, 2006,
Standard & Poor's Ratings Services assigned its preliminary 'BBB'
senior debt, 'BBB-' subordinated debt, and 'BB+' preferred stock
ratings to Marsh & McLennan's unlimited universal shelf.  Standard
& Poor's also affirmed its 'BBB' counterparty credit rating on
MMC.  The outlook in negative.


MERRY-GO-ROUND: Final Distributions Mailed to Creditors
-------------------------------------------------------
The Honorable E. Stephen Derby entered an Order on September 7
approving a final 11.5470% distribution to unsecured creditors of
Merry-Go-Round Enterprises by Deborah H. Devan, the Chapter 7
Trustee overseeing the failed retailer's liquidation, bringing
total recoveries by prepetition unsecured creditors to 41.5470%.
At the conclusion of the 12-year bankruptcy proceeding, Ms. Devan
reports that she reduced the estate to a $294.5 million pile of
cash.  Chapter 11 administrative claims, secured claims, and
priority claims were paid in full.  Ms. Devan made a 30% interim
distribution to unsecured creditors in early 2003.

Ms. Devan, as previously reported in the Troubled Company
Reporter, inherited an administratively insolvent estate when the
fashion retailer's chapter 11 restructuring failed.  The bulk of
the increase in estate value came from a $185 million settlement
Ms. Devan extracted from Ernst & Young LLP.

Ms. Devan applied for an $8.8 million fee -- the full 3% permitted
under 11 U.S.C. Sec. 326, according to court records.  Katherine
A. Levin, Esq., representing the United States Trustee, has argued
that payment of a $2.5 million lodestar fee -- derived by
multiplying reasonable hourly rates of $225 to $330 per hour by
9,300 reasonable hours Ms. Devan worked on the case over the past
decade -- is more appropriate.  The U.S. Trustee won't lend
support to a $6.3 million fee enhancement.

Merry-Go-Round filed for Chapter 11 bankruptcy protection in 1994
(Bankr. D. Md. Case No. 94-5-0161-SD).  Following a couple of
failed attempts to find its place on the retail landscape, the
case converted to a chapter 7 liquidation in early 1996.  Since
that time, Ms. Devan has worked on winding-up the Debtors'
estates.  Cynthia L. Leppert, Esq., and Jason N. St. John Esq., at
Neuberger, Quinn, Gielen, Rubin & Gibber, P.A., in Baltimore
represent Ms. Devan.


MICROVISION INC: Posts $11.2 Mil. Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
Microvision, Inc., reported an $11.2 million net loss available
for common shareholders for the three months ended June 30, 2006,
compared to a net loss of $5 million for the same period in 2005.

For the six months ended June 30, 2006, the Company reported a
$10.9 million net loss compared to $12.1 million for the same
period in 2005.

The net loss available for common share holders for the three and
six months ended June 30, 2006 includes a one time $3.1 million
charge associated with the conversion of

For the six months ended June 30, 2006, the company reported
revenue of $4.4 million compared to $8.7 million for the same
period in 2005, and $1.9 million for the three months ended June
30, 2006 compared to $4.7 million for the same period in 2005.
The reduced year-to-date revenue versus last year was primarily
due to the reductions in commercial contract revenue.  The Company
earned $4.5 million during the first six months of 2005 from work
performed on a contract with Ethicon compared to $663,000 during
the first six months of 2006.

The company reported an operating loss for the six months ended
June 30, 2006, of $14.4 million compared to $11.4 million for the
same period in 2005 and $7.8 million for the three months ended
June 30, 2006 compared to $5.8 million in the same period in 2005.
The operating loss for the three and six months ended
June 30, 2006, includes $154,000 and $647,000, respectively, of
severance costs and $565,000 and $982,000, respectively, of non
cash compensation costs associated with the adoption of FASB
123(R) that were not included in 2005.

"I am very encouraged by what we have accomplished over the first
six months of the year," said Alexander Tokman, President and
Chief Executive Officer.

"In the first half of 2006 we focused heavily on developing a
sustainable commercial contract revenue funnel consistent with our
IPM strategy that was implemented earlier this year.  These
efforts are expected to yield development agreements during the
second half of 2006 that will lead to commercialization of high
volume HUD and PicoP applications.  However, these agreements may
not be signed in time to allow us to recognize as much revenue
this year as we had originally planned.

"Achieving our goal of reducing the operating loss by 30% for the
total year is largely dependent on achieving our revenue goal and
maintaining aggressive cost management.  We continue an aggressive
cost management of sales, marketing and administrative expenses
and expect to reduce these expenses for the full year by at least
25%.

"While our key goals for the year are both to reduce the burn rate
and accelerate the IPM products roadmap, we will make trade-offs
that provide the opportunity to accelerate our time to market.  An
example of this trade-off was the recently announced second half
funding of a laser OEM to accelerate the development of solid
state green laser for high volume products."

                        Going Concern Doubt

As reported in the Troubled Company Reporter on April 6, 2006,
PricewaterhouseCoopers LLP in Seattle, Washington, raised
substantial doubt about Microvision's ability to continue as
a going concern after auditing the company's consolidated
financial statements and its internal control over financial
reporting as of Dec. 31, 2005.  The auditor pointed to the
company's losses since inception, accumulated deficit, and need
for additional financial resources to fund its operations at least
through Dec. 31, 2006.

                       About Microvision

Headquartered in Redmond, Wash., Microvision Inc. --
http://www.microvision.com/-- develops high-resolution displays
and imaging systems based on the company's proprietary silicon
micro-mirror technology.  The company's technology has
applications in a broad range of military, medical, industrial,
professional and consumer products.


MERISANT WORLDWIDE: S&P Downgrades Corporate Credit Rating to CCC
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered several of its ratings
on Chicago, Illinois-based low-calorie sweetener processor,
packager, and marketer (of aspartame-based products) Merisant
Worldwide Inc. and its wholly owned subsidiary Merisant Co.  The
corporate credit rating was lowered to 'CCC' from 'CCC+' and the
subordinated debt rating was lowered to 'CC' from 'CCC-'.

At the same time, Standard & Poor's affirmed its 'CCC+' bank loan
rating on Merisant's first-lien senior secured credit facility.

The rating outlook is negative.  Total consolidated debt
outstanding was about $543.9 million as of June 30, 2006,
excluding operating lease obligations.

"The downgrade primarily reflects continued softness in Merisant's
financial performance, which has contributed to weaker credit
protection measures and narrowing cushion on its bank covenants,
which were recently amended following the company's second-lien
refinancing," explained Standard & Poor's credit analyst Mark
Salierno.

Merisant's overall capital structure remains highly leveraged, and
Standard & Poor's believes that the company may violate its
recently amended bank covenants when leverage covenants step down
in March 2007.

"The affirmation of the company's senior secured credit facility
reflects senior first-lien lenders' more favorable prospects for
recovery following the paydown of first-lien debt, as part of the
company's most recent refinancing," added Mr. Salierno.

The first-lien senior secured credit facility is now rated one
notch higher than the corporate credit rating, indicating the
expectation for full recovery of principal in the event of a
payment default.

The ratings reflect:

   * Merisant's highly leveraged financial profile;
   * limited financial flexibility;
   * tightening bank covenants;
   * narrow product focus; and
   * highly competitive industry conditions.

Although the $1.5 billion global low-calorie sweetener industry is
experiencing favorable growth trends driven by increased health
consciousness, higher incidence of diabetes/glucose intolerance,
and favorable demographics, Merisant has not capitalized on this
growth because of an increasingly challenging competitive
landscape and its limited financial flexibility.  Still, the
company's market dollar share of about 24% is second to market
leader Splenda (just more than a 30% share), marketed by McNeil
Nutritionals, a division of Johnson & Johnson (AAA/Stable/A-1+).


MUSICLAND HOLDING: Taps Walker Truesdell as Winddown Officer
------------------------------------------------------------
Pursuant to Section 363 of the Bankruptcy Code, Musicland Holding
Corp. and its debtor-affiliates seek the U.S. Bankruptcy Court for
the Southern District of New York's authority to employ Walker,
Truesdell & Associates, Inc., as winddown officer in their Chapter
11 cases, nunc pro tunc to August 21, 2006.

Jonathan P. Friedland, Esq., in Kirkland & Ellis LLP, in New
York, discloses that the Debtors intend to file a First Amended
Joint Plan of Liquidation based on negotiations with the Official
Committee of Unsecured Creditors and the Informal Committee of
Holders of Secured Trade Debt.

The Plan will provide for, among other things, the use of the
Debtors' cash, with the Informal Committee's consent, to:

   -- satisfy administrative, priority and certain secured
      claims; and

   -- fund the Debtors' winddown costs in accordance with an
      agreed upon budget pursuant to the Plan.

The Debtors anticipate that all of their employees other than
their chief financial officer and approximately 10 employees will
be terminated or will have left the Debtors' employ.  Thus, the
Debtors want to retain WTA as winddown officer in their Chapter
11 cases.

WTA is well qualified to serve as the Debtors' winddown officer,
Mr. Friedland asserts.  WTA is a leading provider of winddown
services, has a wealth of experience in providing services in
Chapter 11 cases, and has an excellent reputation as a result of
the many years of quality services it has rendered on behalf of
debtors throughout the United States, Mr. Friedland says.

With the Debtors, WTA aims to:

   1. minimize the time and expenses associated with the wind
      down of the Debtors;

   2. resolve as many issues as possible within six months of its
      appointment;

   3. maximize distribution to Trade Vendors and make them as
      quickly as possible; and

   4. recover sufficient funds from preferences and other actions
      to enable a distribution to Unsecured Creditors, including
      the Trade Vendors' deficiency claims.

As winddown officer, WTA has, and will continue, to:

   (a) ensure the timely issuance and filing of 2006 W-2, 1099s
       and payroll tax returns;

   (b) help devise and execute an inexpensive and expeditious
       claims objection and resolution process;

   (c) prepare and file monthly operating reports and quarterly
       U.S. Trustee reports;

   (d) collect outstanding receivables, deposits, tenant
       allowances, tax refunds and other refunds;

   (e) effect the release of cash collateral held on Letters of
       Credit;

   (f) resolve and collect amounts due from Trans World
       Entertainment Corporation as a result of the sale of the
       Debtors' assets;

   (g) investigate, then resolve and settle all federal, state,
       local and sales tax claims, administrative claims, lien
       payments and transfer tax payments;

   (h) analyze and pursue avoidance actions;

   (i) maintain the Debtors' books and records, and finally
       arrange for their storage and destruction;

   (j) provide a Final Report and Accounting; and

   (k) perform all other actions necessary to wind-down the
       Debtors' business affairs.

The Debtors will pay WTA at these hourly rates:

           Principal, Hobie Truesdell     $300
           Associates                     $275
           Junior Associate               $250
           Paraprofessionals              $75

The Debtors will also reimburse WTA for its actual and necessary
out-of-pocket expenses.

WTA will record its time in 1/10th hour increments and will
provide copies of its monthly fee statements and staffing reports
to the counsel for the Creditors Committee, the Debtors' counsel,
the counsel to the Informal Committee and the U.S. Trustee.

Hobart G. Truesdell, Esq., a senior member at WTA, assures the
Court that the firm does not hold nor represent any interest
adverse to the Debtors or their estates.

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 17; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


MUSICLAND HOLDING: Landlords Balk at Assume & Assign Leases Motion
------------------------------------------------------------------
More than 20 landlords oppose Musicland Holding Corp. and its
debtor-affiliates' request for the assumption and assignment of
certain leases to Record Town, Inc., or Record Town USA, LLC:

   -- Arden Fair Associates, L.P.,
   -- Aronov Realty Management,
   -- Beerman Realty Corporation,
   -- Concord Mall Properties Ltd.,
   -- Cookeville 1992 Joint Venture,
   -- Coventry Retail L.P.,
   -- Developers Diversified Realty Corporation,
   -- General Growth Management, Inc.,
   -- Glimcher Properties Limited Partnership,
   -- Gregory Greenfield & Associates, Ltd.,
   -- Jones Lang LaSalle Americas, Inc.,
   -- Kravco Simon Company,
   -- Lilac Mall Associates,
   -- New Plan Excel Realty Trust, Inc.,
   -- Plaza Las Am,ricas, Inc.,
   -- PREIT Services, Inc.,
   -- Steamtown Mall Partners, L.P.,
   -- The Macerich Company,
   -- The Mills Corporation,
   -- Union Station Venture II, LLC, and
   -- WRI/TEXLA, LLC.

The Landlords are the owners, or managing agents for the owners,
of various shopping centers and non-residential real estate
properties where the Debtors lease and operate their retail
stores.

The Landlords contend that the Debtors incorrectly identified cure
amounts for certain of the Leases.

According to the Landlords, the Debtors remain liable for:

   (a) all cure costs;

   (b) postpetition rent and other charges under the Leases which
       have become due;

   (c) certain amounts due and owing under the Leases, including
       but not limited to, year-end adjustments for common area
       maintenance, taxes and similar charges; and

   (d) any non-monetary defaults.

On Glimcher Properties' behalf, Ronald E. Gold, Esq., at Frost
Brown Todd LLC, in Cincinnati, Ohio, asserts that the Landlords
are entitled to reasonable attorneys' fees as part of the cure
payment.

Accordingly, the Landlords ask the U.S. Bankruptcy Court for the
Southern District of New York to compel the Debtors to pay the
amount currently due and owing under the Leases.

The Debtors must also cure all defaults under each of the Leases
and provide adequate assurance of the proposed assignee's future
performance under the Lease, the Landlords assert.

Subsequently, Beerman Realty and Coventry Retail withdrew their
objections.

Headquartered in New York, New York, Musicland Holding Corp., is a
specialty retailer of music, movies and entertainment-related
products.  The Debtor and 14 of its affiliates filed for chapter
11 protection on Jan. 12, 2006 (Bankr. S.D.N.Y. Lead Case No.
06-10064).  James H.M. Sprayregen, Esq., at Kirkland & Ellis,
represents the Debtors in their restructuring efforts.   Mark T.
Power, Esq., at Hahn & Hessen LLP, represents the Official
Committee of Unsecured Creditors.  When the Debtors filed for
protection from their creditors, they estimated more than $100
million in assets and debts.  (Musicland Bankruptcy News, Issue
No. 17; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NATIONAL CENTURY: Class C-7 Claims Totaling $426K Conveyed to BofA
------------------------------------------------------------------
On Aug. 15, 2006, the Clerk of Court received two notices of
claims transfer for Class C-7 claims:

    (a) Claim No. 59 filed by Gerbig, Snell/Weisheimer Advertising
        LLC, for $408,984; and

    (b) Claim No. 74 filed by Helmsing, Leach, Herlong, Newman &
        Rouse, P.C., for $17,422.

Both claims were transferred to:

      Bank of America, N.A.
      214 North Tryon Street NC1-027-14-01
      Charlotte, North Carolina 28255
      Contact Person: Hearst Tower, BofA's information manager
      Tel. No. (704) 387-4366
      Fax No. (704) 409-0768

Pursuant to each claim's transfer agreement with Bank of America,
Gerbig and Helmsing will irrevocably sell, convey, transfer, and
assign all their right, title, and interest in and to, or arising
under, or in connection with, their claims, including the right
to receive payment with respect to each of the contracts and
invoices that are applicable to their claims.

From and after the effective date of claim transfers, Gerbig and
Helmsing covenant that they will not take or engage in any act or
conduct, or make any omission that will result in the impairment
of their transferred claim rights.

Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- through the CSFB
Claims Trust, the Litigation Trust, the VI/XII Collateral Trust,
and the Unencumbered Assets Trust, is in the midst of liquidating
estate assets.  The Company filed for Chapter 11 protection on
November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235).  The Court
confirmed the Debtors' Fourth Amended Plan of Liquidation on
April 16, 2004.  Paul E. Harner, Esq., at Jones Day, represents
the Debtors. (National Century Bankruptcy News, Issue No. 65;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NATIONAL CENTURY: LTC Entities' Lawsuit Stayed Until September 25
-----------------------------------------------------------------
Long Term Care Management, Inc., Quality Long Term Care
Management, Inc., and Quality Long Term Care, Inc., obtained
approval from the Honorable Donald E. Calhoun, Jr., of the U.S.
Bankruptcy Court for the Southern District of Ohio, Eastern
Division, to further extend the period of stay with respect all
matters pending before the Court in the Adversary Proceeding, to
and including Sept. 25, 2006.

If the Period of Stay expires without being extended by agreement
of the parties, the LTC Entities will have an additional two-week
extension of time through and including Oct. 9, 2006, to move
or otherwise respond to the VI/XII Collateral Trust and FTI's
Summary Judgment Motion, Judge Calhoun says.

As reported in the Troubled Company Reporter on June 26, 2006,
VI/XII Collateral Trust and FTI Consulting, Inc., asked the U.S.
Bankruptcy Court for the Southern District of Ohio to issue a
summary judgment declaring that:

    (1) Long Term Care Management, Inc., Quality Long Term Care
        Management, Inc., and Quality Long Term Care, Inc., are
        liable for the $1,130,000 currently owed on NPF XII,
        Inc.'s allowed claims in the LTC Entities' Chapter 11 plan
        of reorganization -- the Settlement Obligation;

    (2) The LTC Entities should turnover all amounts currently
        mature and due under the Settlement Obligation;

    (3) The LTC Entities breached the LTC Plan by failing to make
        payments they admittedly owe to the Trust; and

    (4) The LTC Entities' failure to make payments under the
        Settlement Obligation is in contempt of the Confirmation
        Order and the Enforcement Order in the Chapter 11 cases of
        National Century Finance Enterprises, Inc.

Besides the summary judgment request, the other matter currently
pending before the Court in the Adversary Proceeding is the LTC
Entities' request to dismiss the complaint for lack of subject
matter jurisdiction.

Headquartered in Dublin, Ohio, National Century Financial
Enterprises, Inc. -- http://www.ncfe.com/-- through the CSFB
Claims Trust, the Litigation Trust, the VI/XII Collateral Trust,
and the Unencumbered Assets Trust, is in the midst of liquidating
estate assets.  The Company filed for Chapter 11 protection on
November 18, 2002 (Bankr. S.D. Ohio Case No. 02-65235).  The Court
confirmed the Debtors' Fourth Amended Plan of Liquidation on
April 16, 2004.  Paul E. Harner, Esq., at Jones Day, represents
the Debtors. (National Century Bankruptcy News, Issue No. 65;
Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


NATIONAL DATACOMPUTER: June 30 Balance Sheet Upside-Down by $4.3MM
------------------------------------------------------------------
National Datacomputer, Inc., filed its second quarter financial
statements for the three months ended June 30, 2006, with the
Securities and Exchange Commission on Aug. 14, 2006.

For the three months ended June 30, 2006, the Company reported
$53,480 of net income on $820,173 of net revenues compared to a
$264,855 net loss on $531,513 of net revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $1,024,178 in
total assets and $5,404,367 in total liabilities, resulting in a
$4,380,189 stockholders' deficit.

The Company's June 30 balance sheet also showed strained liquidity
with $950,588 in total current assets available to pay $1,628,188
in total current liabilities coming due within the next 12 months.

The Company has incurred an accumulated deficit of approximately
$19,320,694 through June 30, 2006.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?117b

                        Going Concern Doubt

Carlin, Charron & Rosen, L.L.P., in Westborough, Massachusetts,
raised substantial doubt about National Datacomputer's Inability
to continue as a going concern after auditing the Company's
consolidated financial statements for the year ended Dec. 31,
2005.  The auditor pointed to the Company's recurring operating
losses and incurred $19.2 million accumulated deficit.

                     About National Datacomputer

Based in Delaware, National Datacomputer, Inc., manufactures and
sells inventory software used to collect and process product
information.


NEXTPHASE WIRELESS: June 30 Stockholders' Deficit Tops $1.3 Mil.
----------------------------------------------------------------
NextPhase Wireless, Inc., filed its financial statements for the
first fiscal quarter ended June 30, 2006, with the Securities and
Exchange Commission.

Revenue for the quarter ended June 30, 2006, was $521,278 as
compared with $147,324 for the quarter ended June 30, 2005.  The
increase of $373,954 or 254% in revenue is due to the acquisition
of SpeedFactory, Inc., on April 5, 2006.

The Company had a $498,846 net loss for the three months ended
June 30, 2006, an increase of $129,055 or 35% compared with a net
loss of $369,791 for the three months ended June 30, 2005.

At June 30, 2006, the Company's balance sheet showed $1,960,824 in
total assets and $3,270,489 in total liabilities, resulting in a
$1,309,666 stockholders' deficit.

Full-text copies of the Company's first quarter financials are
available for free at http://ResearchArchives.com/t/s?1184

                        Going Concern Doubt

Russell Bedford Stefanou Mirchandani LLP in New York raised
substantial doubt about NextPhase Wireless Inc.'s ability to
continue as a going concern after auditing the Company's
consolidated financial statements for the year ended March 31,
2006.  The auditor pointed to the Company's net losses since
inception.

                  About NextPhase Wireless, Inc.

NextPhase Wireless, Inc., specializes in delivering integrated
Internet, voice and data communications solutions to its
customers.  The Company offers a full portfolio of connectivity
solutions,  including dial-up access, DSL, wireless, T1, co-
location and Web-hosting.  The Company designs, deploys, and
operates its own  wireless networks, and provides wireless
connectivity solutions to businesses and municipalities.  On April
5, 2006, through its wholly owned subsidiary, SpeedFactory, Inc.,
the Company acquired the  internet service and connectivity
business assets operated by Synkronus, Inc., under the name
"SpeedFactory".  The combined company has 15 employees with
offices in Anaheim, Calif., and Atlanta, Georgia.


NOBEX CORP: All Ballots Must Be Received by October 4
-----------------------------------------------------
The Honorable Christopher S. Sontchi of the U.S. Bankruptcy Court
for the District of Delaware approved Nobex Corporation's
procedures for solicitation and tabulation of votes to accept its
Amended Liquidating Plan.

Ballots need not be provided to:

   -- holders of unclassified Administrative Claims and Claims in
      Classes 1 and 2 because under the Plan these holders are
      unimpaired and are conclusively presumed to accept the Plan
      in accordance with Section 1126(f) of the Bankruptcy Code;
      and

   -- holders of Interests in Classes 4 and 5 because under the
      Plan these holders are conclusively presumed to reject the
      Plan in accordance with Section 1126(g) of the Bankruptcy
      Code.

All ballots must be properly executed, completed, and received not
later than 5:00 p.m. on Oct. 4, 2006, and delivered either:

   a. by mail

      Nobex Corporation
      c/o  BMC Group
      P.O. Box 909
      El Segundo, CA 90245-0909

   b. by hand, courier or overnight service

      Nobex Corporation
      c/o  BMC Group
      1330 East Franklin Avenue
      El Segundo, CA 90245

Headquartered in Durham, North Carolina, Nobex Corporation --
http://www.nobexcorp.com/-- is a drug delivery company developing
modified drug molecules to improve medications for chronic
diseases.  The Company filed for chapter 11 protection on
Dec. 1, 2005 (Bankr. D. Del. 05-20050).  Alicia B. Davis, Esq.,
Derek C. Abbott, Esq., and Curtis S. Miller, Esq., at Morris,
Nichols, Arsht & Tunnell LLP represent the Debtor in its
restructuring efforts.  J. Scott Victor at SSG Capital Advisors,
L.P., is providing Nobex with investment banking services.
Michael B. Schaedle, Esq., and David W. Carickhoff, Esq., at Blank
Rome LLP, represent the Official Committee of Unsecured Creditors
in Nobex's chapter 11 case, and John Bambach, Jr., and Ted Gavin
at NachmanHaysBrownstein, Inc., provide the Committee with
financial advisory services.  When the Debtor filed for protection
from its creditors, it estimated between $1 million to $10 million
in assets and $10 million to $50 million in liabilities.


PARMALAT: Court Adjourns Permanent Injunction Hearing to Oct. 17
----------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York adjourned the hearing to consider
entry of a permanent injunction in the Parmalat Foreign Debtors'
Section 304 cases until Oct. 17, 2006, at 10:00 a.m.

In the interim, Judge Drain extends the preliminary injunction
through and including Oct. 20, 2006.  Judge Drain enjoins and
restrains all persons subject to the jurisdiction of the U.S.
court from engaging in any action against the Foreign Debtors
without obtaining permission from the Bankruptcy Court.

The Civil and Criminal Court of Parma, in Italy, will continue to
have exclusive jurisdiction to hear and determine any suit,
action, claim or proceeding, other than an enforcement action
initiated by the U.S. Securities and Exchange Commission, and to
settle all disputes which may arise out of (i) the construction
or interpretations of the Foreign Debtors' restructuring plan
approved by the Italian Court, or (ii) any action taken or
omitted to be taken by any person or entity in connection with
the administration of the Italian Plan.

As reported in the Troubled Company Reporter on Sept. 6, 2006,
five creditors and parties-in-interest filed with the Court
their objections to Dr. Enrico Bondi's request for a permanent
injunction order in Parmalat's ancillary proceedings.

Dr. Bondi is the authorized foreign representative of Parmalat
Finanziaria S.p.A. and certain of its affiliates.

In his request, Dr. Bondi filed with the Court a proposed
permanent injunction order pursuant to Section 304 of the
Bankruptcy Code.  Dr. Bondi also submitted with the Court a
memorandum of law supporting his permanent injunction request.

A full-text copy of the proposed Permanent Injunction Order is
available for free at http://researcharchives.com/t/s?e22

Creditors BankBoston, N.A., FleetBoston Financial, Bank of America
Corporation, Bank of America National Trust & Savings
Association, Banc of America Securities, LLC, and Bank of
America, N.A., told the Court that the proposed Permanent
Injunction Order cannot be approved because it would constitute
an inappropriate anti-foreign suit injunction.

BofA, et al. also argued that the Foreign Debtors' request for
extra-territorial application of the Permanent Injunction would
unduly limit the ability of domestic and foreign creditors to
pursue all appropriate remedies outside of the United States in
accordance with applicable foreign law.

The Pension Benefit Guaranty Corporation, which provides
termination insurance for all of the Debtors' Pension Plans, said
the proposed Permanent Injunction Order contains illegal
discharges, releases, exculpations and injunctions.

The PBGC said it was willing to withdraw its objections if the
proposed Permanent Injunction Order clarifies that:

   -- no provisions of or proceeding within the Foreign Debtors'
      reorganization cases in Italy and the Section 304 cases
      before the U.S. Bankruptcy Court will in any way be
      construed as discharging, releasing, limiting or relieving
      the Foreign Debtors, or any other party from any liability
      with respect to the Pension Plans or any other defined
      benefit pension plan; and

   -- the PBGC and the Pension Plans will not be enjoined or
      precluded from enforcing liability resulting from any of
      the provisions of the Foreign Debtors' restructuring plan
      approved by the Italian court, or the entry of a Permanent
      Injunction Order.

Grant Thornton International does not want the Permanent
Injunction to apply to it in any manner in the conduct of:

   -- a securities fraud class action pending before the U.S.
      District Court for the Southern District of New York;

   -- three actions initiated by Dr. Bondi against banks and
      accounting firms; and

   -- actions commenced by the trustees of the U.S. Debtors and
      two liquidators of Parmalat SpA's Cayman Islands
      affiliates.

Grant Thornton is a defendant in those actions.

On behalf of Israel Discount Bank of New York, Bruce S. Nathan,
Esq., at Lowenstein Sandler PC, in New York, argues that in
seeking entry of a permanent injunction order, the Foreign
Debtors must demonstrate that claimholders in the Italian
proceedings are receiving "just treatment" and not experiencing
"prejudice and inconvenience" in the claims administration
process.  The Foreign Debtors cannot meet this burden as to IDB,
Mr. Nathan says.

IDB's claims arise from promissory notes totaling $6,000,000 in
principal plus interest, guaranteed by Parmalat S.p.A.

Hermes Focus Asset Management Europe, Ltd.; Cattolica
Partecipazioni, S.p.A.; Capital & Finance Asset Management S.A.;
Societe Monderne des Terrassements Parisiens; and Solarat -- the
lead plaintiffs in a securities class action -- want the proposed
Permanent Injunction Order modified to clarify that it does not
impact their rights to pursue claims against Reorganized
Parmalat.

In July 2006, the District Court granted the Hermes Focus, et al.
leave to file an amended complaint against Reorganized Parmalat.

                          About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News, Issue
No. 77; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand/)


PARMALAT: Agrees with Liquidators to Continue TRO to December 15
----------------------------------------------------------------
Gordon I. MacRae and James Cleaver, the Joint Official Liquidators
of Parmalat Capital Finance Limited, Dairy Holdings Limited, and
Food Holdings Limited, on the one hand, and Parmalat Finanziaria
S.p.A. and its affiliates and subsidiaries, under the direction of
Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat
companies, on the other, agree to consensually extend the
Temporary Restraining Order in the Finance Companies' Sec. 304
cases until Dec. 15, 2006.

Judge Drain will convene a hearing to consider the Liquidators'
application for preliminary injunction on Dec. 14, 2006, at
10:00 a.m.  Parmalat Finanziaria's time to answer the Petition
commencing the ancillary proceedings is extended until Jan. 22,
2007.

In January 2004, the Liquidators, on Dairy Holdings and Food
Holdings' behalf, commenced lawsuits against various Bank of
America entities, Grant Thornton entities, and Deloitte entities
before the U.S. District Court for the Southern District of New
York.  The Liquidators, on Parmalat Capital's behalf, brought suit
against BofA in North Carolina state court and against Grant
Thornton in Illinois state court.

The Food & Dairy Litigation, the PCF-BofA Litigation and the
PCF-Grant Thornton Litigation were subsequently consolidated for
pre-trial administration in In re Parmalat Securities Litigation
MDL Action, Master Docket 04-MD-1653, before Judge Lewis A.
Kaplan.

Judge Drain rules that the defendants in the Food & Dairy
Litigation, the PCF-BofA Litigation and the PCF-Grant Thornton
Litigation will be allowed to take discovery appropriate against
the Liquidators in connection with the pending lawsuits.  BofA
will be permitted to assert counterclaims and rights of set-off
and recoupment, as or may be authorized in any orders of Judge
Kaplan.

                          About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News, Issue
No. 77; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand/)


PARMALAT: Cayman Appellate Court Okays Ernst & Young's Appointment
------------------------------------------------------------------
The appointment of Gordon I. MacRae and James Cleaver at Kroll
(Cayman) Limited as Joint Official Liquidators of Parmalat
Capital Finance Limited has been affirmed by the Court of Appeals
in Cayman Islands, Richard I. Janvey, Esq., at Janvey Gordon
Herlands Randolph & Cox LLP, in New York, informed Judge Drain.

As reported in the Troubled Company Reporter on June 22, 2006,
the Grand Court of Cayman Islands appointed Messrs. MacRae and
Cleaver as Joint Official Liquidators of Parmalat Capital, Dairy
Holdings Limited, and Food Holdings Limited in May 2006.  Parmalat
Finanziaria SpA and its affiliates and subsidiaries took an appeal
from the Grand Court Order.

Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat
companies, has indicated that he will take the appeal to the
Privy Counsel, Mr. Janvey relates.

Messrs. MacRae and Cleaver are former partners of Ernst & Young
Restructuring Ltd., before Kroll Cayman, an affiliate of Kroll,
Inc., acquired the Cayman Islands insolvency and advisory arm of
Ernst & Young in 2005.

                          About Parmalat

Headquartered in Wallington, New Jersey, Parmalat USA Corporation
-- http://www.parmalatusa.com/-- generates more than 7 billion
euros in annual revenue.  The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents.  The Company filed for chapter
11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No.
04-11139).  Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at
Weil Gotshal & Manges LLP, represent the Debtors.  When the U.S.
Debtors filed for bankruptcy protection, they reported more than
$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.  (Parmalat Bankruptcy News, Issue
No. 77; Bankruptcy Creditors' Service, Inc., 215/945-7000,
http://bankrupt.com/newsstand/)


PEABODY ENERGY: Moody's Rates $1.8 Billion Credit Facility at Ba1
-----------------------------------------------------------------
Moody's Investors Service assigned a Ba1 senior unsecured rating
to Peabody Energy Corporation's $1.8 billion Revolving Credit
Facility and $950 million Term Loan A.  At the same time, Moody's
raised the senior unsecured rating on the company's existing
senior unsecured notes to Ba1 from Ba2.  Moody's also affirmed
Peabody's Ba1 corporate family rating and its SGL-1 Speculative
Grade Liquidity rating.  The revolver and term loan are being put
in place in part to fund Peabody's proposed acquisition of
Australian coal miner, Excel Corporation, for $1.5 billion.  The
rating outlook remains negative.

Upgrades:

     * Issuer: Peabody Energy Corporation

     * Senior Unsecured Regular Bond/Debenture, Upgraded to Ba1
       from Ba2

Assignments:

     * Issuer: Peabody Energy Corporation

     * Senior Unsecured Bank Credit Facility, Assigned Ba1

The Ba1 corporate family rating reflects:

   1) Peabody's currently low leverage ratio and good
      earnings ratios;

   2) its diversified low-cost operations;

   3) extensive and geographically diversified reserves of
      high quality coal;

   4) strong management; and

   5) portfolio of long-term coal supply agreements with a
      large number of electricity generation customers.

However, the rating also reflects the $1.5 billion increase in
debt to be incurred to fund the Excel acquisition, which will
increase the company's pro form June 30, 2006 debt to EBITDA ratio
to 3.0x from 2.1x, based on the current EBITDA generated by Excel.
The rating also considers the volatile nature of the coal mining
business, and operating and development cost pressures that could
constrain Peabody's free cash flow.

The senior unsecured notes were upgraded to Ba1, the same level as
the corporate family rating, reflecting that virtually all of the
company's senior debt is now unsecured with the release of
collateral for the new bank facilities.

Moody's last rating action on Peabody was a revision of the
outlook to negative in July 2006.

Peabody Energy Corporation, headquartered in St. Louis, Missouri,
is the world's largest private-sector coal company with revenues
in 2005 of $4.6 billion.


PULL'R HOLDINGS: Wants to Hire Harvey & Parmelee as Accountants
---------------------------------------------------------------
Pull'R Holdings LLC asks the U.S. Bankruptcy Court for the Central
District of California in Los Angeles for permission to employ
Harvey & Parmelee LLP as its accountants.

The Debtor wants Harvey & Parmelee's services for the limited
purposes of completing the Debtor's 2005 Income Tax Returns and
related forms and other accounting functions as may be necessary
in light of the Debtor's pending sale of assets.

Richard Scrivanich, a member at Harvey & Parmelee, discloses that
the firm will bill from $100 to $245 per hour.

Mr. Scrivanich assures the Court that his firm is disinterested as
that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Santa Fe Springs, California, Pull'R Holdings LLC
-- http://www.pullr.com/-- sell contractors' equipment and
tools.  The Company is known for brands such as Bucket Boss, Dead
On Tools, and the Maasdam Pow'R-Pull line.   The Company and its
affiliate, Maasdam Pow'r Pull Inc., filed for bankruptcy
protection on April 27, 2006 (Bankr. C.D. Calif. Case No.
06-11669).  Lawrence Diamant, Esq., at Robinson, Diamant &
Wolkowitz, APC, represent the Debtors in their restructuring
efforts.  Aram Ordubegian, Esq., and David R. Weinstein, Esq., at
Weinstein, Weiss & Ordubegian represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for bankruptcy, they
reported $1 million to $10 million in total assets and $10 million
to $50 million in total debts.


PULL'R HOLDINGS: Wants to Sell All Assets for $5.5 Million
----------------------------------------------------------
Pull'R Holdings LLC and Maasdam Pow'r Pull Inc., its debtor-
affiliate, ask the U.S. Bankruptcy Court for the Central District
of California in Los Angeles for authority to sell substantially
all of their assets to Pull'R Holding Company, LLC, for
$5.5 million.

The Debtors explain to the Court that they were unable to obtain
financing to continue normal operations and maintain the value of
their business.

On July 27, 2006, the Court authorized the Debtors to use of cash
collateral and limited DIP financing in the form of a line of
credit not to exceed $300,000 from Merrill Lynch Business
Financial Services Inc.

The Debtors say that if they fail to obtain Court's approval for
the sale of their assets by Oct. 9, 2006, and to close the sale by
Oct. 24, 2006, it would constitute an event of default which would
entitle Merrill Lynch to terminate the use of cash collateral and
seek relief from the automatic stay to foreclose on its security
interest.

The Debtors are presently indebted to Merrill Lynch under the
prepetition financing agreements in the principal amount of
approximately $6,849,925.

Pursuant to the Purchase Agreement, Pull'R Holding will:

   a) assume or replace letters of credit with respect to all of
      the Debtors' outstanding letters of credit obligations
      amounting to $3 million;

   b) assume other postpetition accounts payable and trade
      liabilities of the Debtors; and

   c) pay amounts required to cure any defaults under executory
      contracts or unexpired leases.

Following the consummation of the sale, the Debtors will be left
with excluded assets, which consist of cash, causes of action
including avoidance actions and miscellaneous assets.

The Debtors believe that each portion of the purchased assets
constituting collateral of any secured creditor will sell for more
than the forced liquidation value of the collateral subject to the
lien.

As part of the proposed sale transaction, the Debtors seek to
assume, assume and assign, or reject the Assigned Contracts and
Leases.  A list of executory contracts and leases is available for
free at http://researcharchives.com/t/s?1181

Headquartered in Santa Fe Springs, California, Pull'R Holdings LLC
-- http://www.pullr.com/-- sell contractors' equipment and
tools.  The Company is known for brands such as Bucket Boss, Dead
On Tools, and the Maasdam Pow'R-Pull line.   The Company and its
affiliate, Maasdam Pow'r Pull Inc., filed for bankruptcy
protection on April 27, 2006 (Bankr. C.D. Calif. Case No.
06-11669).  Lawrence Diamant, Esq., at Robinson, Diamant &
Wolkowitz, APC, represent the Debtors in their restructuring
efforts.  Aram Ordubegian, Esq., and David R. Weinstein, Esq., at
Weinstein, Weiss & Ordubegian represent the Official Committee of
Unsecured Creditors.  When the Debtors filed for bankruptcy, they
reported $1 million to $10 million in total assets and $10 million
to $50 million in total debts.


RADNOR HOLDINGS: Taps KPMG LLP as Accountant and Tax Advisor
------------------------------------------------------------
Radnor Holdings Corporation and its debtor-affiliates ask the U.S.
Bankruptcy Court for the District of Delaware for permission to
employ KPMG LLP as their accountant and tax financial advisor,
nunc pro tunc to Aug. 21, 2006.

KPMG will provide appropriate and feasible accounting and tax
financial advisory services in the course of the Debtors' Chapter
11 cases.  The services include tax compliance, tax provision
assistance and tax advisory services, including advice and
assistance on the tax consequences of a Chapter 11 Plan.

The Debtors say that the services to be rendered by KPMG are
critical to their ability to faithfully execute their duties as
debtors-in-possession.

The hourly rates currently charged by KPMG's professionals are:

     Designation                          Hourly Rate
     -----------                          -----------
     Partner                              $625 - $750
     Managing Director / Sr. Manager       475 - 650
     Manager                               325 - 500
     Senior                                250 - 500
     Staff                                 225 - 300

To the best of the Debtors' knowledge, KPMG does not hold any
interest adverse to their estates and is a "disinterested person"
as that term is defined in Section 101(14) of the Bankruptcy Code.

Headquartered in Radnor, Pennsylvania, Radnor Holdings Corporation
-- http://www.radnorholdings.com/-- manufactures and distributes
a broad line of disposable food service products in the United
States, and specialty chemicals worldwide.  The Debtor and its
affiliates filed for chapter 11 protection on Aug. 21, 2006
(Bankr. D. Del. Case No. 06-10894).  Gregg M. Galardi, Esq., and
Mark L. Desgrosseilliers, Esq., at Skadden, Arps, Slate, Meagher,
represent the Debtors.  Victoria Watson Counihan, Esq., at
Greenberg Traurig, LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed total assets of $361,454,000 and
total debts of $325,300,000.


RCN CORP: Sells San Francisco Assets for $45 Million
----------------------------------------------------
RCN Corporation has reached a definitive agreement to sell its San
Francisco assets to Astound Broadband for $45 million in cash, or
approximately $2500 per customer.  Astound Broadband is a cable,
Internet and phone services company currently serving
approximately 55,000 video, data and phone customers in Concord
and Walnut Creek, California.  RCN's San Francisco operations
serve approximately 18,000 customers.

Peter D. Aquino, President and Chief Executive Officer of RCN,
stated, "This transaction is another key strategic milestone for
RCN.  By divesting San Francisco, our primary property on the west
coast, we can now focus our financial and operational resources
fully on our core Northeast Corridor and Chicago region.  We
articulated this as a main objective early on, and continue to
execute toward our operational and strategic initiatives."

Steve Weed, Chief Executive Officer of Astound Broadband,
commented, "The acquisition of RCN's high-value multi-play San
Francisco customers and facilities is a strategic win for Astound
Broadband.  These assets significantly strengthen our local
presence and fulfill our mission to provide 100% of our cable
systems with the latest technology.  With Astound, these customers
will continue to enjoy the same high quality of service and strong
value they always have with RCN."

RCN's board of directors has approved this transaction, which is
subject to the approval of appropriate local and federal
regulatory authorities as well as customary escrows and closing
conditions.  The transaction is expected to close in early 2007.

BB&T Capital Markets acted as financial advisors to RCN in
connection with this transaction.

                     About Astound Broadband

Astound Broadband is a subsidiary of Wave Broadband.  Wave
Broadband, headquartered in Kirkland, Washington, currently serves
approximately 155,000 video, data and phone customers in Port
Orchard, LaConner, and Port Angeles, Washington, and in Ventura
and Cerritos, California.  Owned and operated by local industry
leaders, Wave Broadband supports its customers with decades of
cable know-how, providing 100% of its cable systems with the
latest technologies and upgrades including high speed Internet,
digital cable, international programming options, digital video
recording, and HDTV.

                           About RCN Corp

Based in Herndon, Virginia, RCN Corporation -- http://www.rcn.com/
-- is one of the largest facilities-based competitive providers of
cable, high-speed internet and phone services delivered over its
own fiber-optic local network to residential customers in the most
densely populated markets in the U.S.  RCN Business Solutions is a
growing business that also provides bulk video, high-capacity data
and voice services to business customers.  RCN provides service in
the Boston, New York, Eastern Pennsylvania, Washington, D.C.,
Chicago, San Francisco and Los Angeles metropolitan markets.

                          *     *     *

As reported in the Troubled Company Reporter on May 1, 2006,
Moody's Investors Service upgraded RCN Corporation's corporate
family rating to B1 and assigned a Ba3 rating to RCN's new senior
secured first lien credit facility.

At the same time, Moody's rated the new first lien bank facility
Ba3, one notch higher than the corporate family rating, because
lenders for the now smaller first lien will benefit from a greater
proportion of junior debt as a percent of total debt.  Pro forma
for the repayment and refinancing, Moody's anticipates a decline
in first lien debt of $250 million compared to a decline in junior
debt of only $40 million.  Moody's said the outlook is stable.


ROTEC INDUSTRIES: Wants Until December 29 to File Chapter 11 Plan
-----------------------------------------------------------------
Rotec Industries, Inc., asks the U.S. Bankruptcy Court for the
District of Delaware to extend until Dec. 29, 2006, the period
within which it has the exclusive right to file a chapter 11 plan
of reorganization.  The Debtor also wants its exclusive right to
solicit acceptances of that plan extended to Feb. 28, 2007.

Since the Debtor filed for bankruptcy, it has continued to manage
its business while also attending to the requirements if the
bankruptcy process, has responded to creditor issues and has made
substantial progress with respect to the resolution of the Three
Gorges Project Development Corporation's claim.

The Debtor tells the Court that the extension will not prejudice
the legitimate interests of any creditor, and will afford the
parties the opportunity to achieve a successful confirmation of a
plan.

Headquartered in Elmhurst, Illinois, Rotec Industries, Inc. --
http://www.rotec-usa.com/-- is an industry leader in concrete
products and concrete placing technology & solutions.  The company
filed for chapter 11 protection on May 31, 2006 (Bankr. D. Del.
Case No. 06-10542).  Edward J. Kosmowski, Esq., at Young, Conaway,
Stargatt & Taylor, LLP, represents the Debtor in its restructuring
efforts.  Adam G. Landis, Esq., and Megan Nancy Harper, Esq.,
represent the Official Committee of Unsecured Creditors.  When the
Debtor filed for protection from its creditors, it estimated
assets and debts between $10 million and $50 million.


SAINT VINCENTS: Fixes Cure Amounts for Staten Island CBAs
---------------------------------------------------------
Saint Vincents Catholic Medical Centers of New York and its
debtor-affiliates will assume and assign certain executory
contracts and unexpired leases to Bayonne Medical Center's
affiliate Castleton Acquisition Corporation in connection with the
sale of St. Vincent's Hospital, Staten Island and certain related
assets.

The Assumed Contracts and Leases include the labor and collective
bargaining agreements between the Debtors and 1199SEIU United
Healthcare Workers East:

    (a) Local 1199SEIU with respect to St. Vincent's/Bayley Seton
        Service/Clerical Employees, and

    (b) Local 1199SEIU with respect to St. Vincent's/Bayley Seton
        Professional Employees.

The Debtors, 1199SEIU United, and 1199SEIU National Benefit and
Pension Funds wish to resolve their disputes over the amount the
Debtors must pay to satisfy the requirements of Section 365(b) of
the Bankruptcy Code for the CBAs related to the Staten Island
Assets employees, and other issues related to Sections 365, 1113
and 1114, without the cost and risk of litigation.

In a stipulation approved by the U.S. Bankruptcy Court for the
Southern District of New York, the Debtors, 1199SEIU United, and
1199SEIU Funds agree that:

    * the Cure Amount for the CBAs, other than any interest
      accrued postpetition on amounts outstanding under the CBAs
      as of the Petition Date, is $2,587,272;

    * the Court will determine whether 1199SEIU Funds and 1199SEIU
      United are entitled to any postpetition interest as part of
      the Debtors' cure obligation with respect to their
      assumption of the CBAs, and any Postpetition Interest Amount
      in line with the confirmation of the Debtors' Plan of
      Reorganization or, at the Debtors' behest, at an earlier
      date.  To the extent the Court determines that the
      Postpetition Interest Amount is part of the Debtors' cure
      obligation, then Debtors will be liable for the Postpetition
      Interest Amount as an administrative expense under Section
      503(b);

    * the payment of the Cure Amounts will fully satisfy the
      requirements of Section 365(b) with regard to the CBAs,
      other than the Postpetition Interest Amount, if any;

    * the CBAs will be assumed and assigned to the Purchaser as of
      the closing date under a certain purchase agreement even if
      the Postpetition Interest Amount has not been determined by
      the Court;

    * the assignment of the CBAs to the Purchaser in connection
      with the sale of the Staten Island Assets is acceptable.
      The Debtors and the Purchaser have provided adequate
      assurance of the Purchaser's future performance under the
      CBAs; and

    * all pending grievances and arbitrations, and all grievances
      and arbitrations arising between August 29, 2006, and the
      Closing Date, between 1199SEIU and 1199SEIU bargaining unit
      employees, and the Debtors involving the Staten Island
      Assets will be resolved in accordance with the procedures
      set forth in the applicable CBAs.  The Debtors will be
      liable for any required payments resulting from the
      resolution of Grievances and Awards of Arbitration as
      administrative expenses.

Headquartered in New York, New York, Saint Vincents Catholic
Medical Centers of New York -- http://www.svcmc.org/-- the
largest Catholic healthcare providers in New York State, operate
hospitals, health centers, nursing homes and a home health agency.
The hospital group consists of seven hospitals located throughout
Brooklyn, Queens, Manhattan, and Staten Island, along with four
nursing homes and a home health care agency.  The Company and six
of its affiliates filed for chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).  Gary
Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will &
Emery, LLP, filed the Debtors' chapter 11 cases.  On Sept. 12,
2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took
over representing the Debtors in their restructuring efforts.
Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represents the
Official Committee of Unsecured Creditors.

As of Apr. 30, 2005, the Debtors listed $972 million in total
assets and $1 billion in total debts.  (Saint Vincent Bankruptcy
News, Issue No. 34 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SAINT VINCENTS: GAIC Has Until October 31 to Examine SVCM Staff
---------------------------------------------------------------
In a stipulation approved by the U.S. Bankruptcy Court for the
Southern District of New York, Saint Vincents Catholic Medical
Centers of New York, its debtor-affiliates and Great American
Insurance Company agreed to extend up to and including
Oct. 31, 2006, the time for GAIC to:

    -- examine under oath persons under the direction and control
       of Saint Vincent's Catholic Medical Centers; and

    -- issue one or more subpoenas compelling the examination
       under oath of persons no longer under the direction and
       control of the SVCMC Debtors.

As reported in the Troubled Company Reporter on March 29, 2006,
GAIC wants to secure documents from the Debtors related to:

   (a) restricted use accounts or other set asides or accounts
       purportedly created by the Debtors relevant to two
       judgments in favor of:

       * Patsy Merola, in the action entitled Patsy Merola, as
         Administrator of the Estate of Wanda Merola v. Catholic
         Medical Center of Brooklyn & Queens, Inc., doing
         business as St. John's Hospital, et al., commenced in
         the Supreme Court of the State of New York, Queens
         County; and

       * Sondra Lowery, in the action entitled Sondra Lowery v.
         Henry Lamaute, M.D., et al., commenced in the Supreme
         Court of the State of New York, Queens County; and

   (b) the insurance and self-insurance programs implemented by
       the Debtors with respect to their medical malpractice
       liabilities.

Headquartered in New York, New York, Saint Vincents Catholic
Medical Centers of New York -- http://www.svcmc.org/-- the
largest Catholic healthcare providers in New York State, operate
hospitals, health centers, nursing homes and a home health agency.
The hospital group consists of seven hospitals located throughout
Brooklyn, Queens, Manhattan, and Staten Island, along with four
nursing homes and a home health care agency.  The Company and six
of its affiliates filed for chapter 11 protection on July 5, 2005
(Bankr. S.D.N.Y. Case No. 05-14945 through 05-14951).  Gary
Ravert, Esq., and Stephen B. Selbst, Esq., at McDermott Will &
Emery, LLP, filed the Debtors' chapter 11 cases.  On Sept. 12,
2005, John J. Rapisardi, Esq., at Weil, Gotshal & Manges LLP took
over representing the Debtors in their restructuring efforts.
Martin G. Bunin, Esq., at Thelen Reid & Priest LLP, represents the
Official Committee of Unsecured Creditors.

As of Apr. 30, 2005, the Debtors listed $972 million in total
assets and $1 billion in total debts.  (Saint Vincent Bankruptcy
News, Issue No. 34 Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


SATELITES MEXICANOS: Judge Drain Approves Disclosure Statement
--------------------------------------------------------------
The Honorable Robert D. Drain of the U.S. Bankruptcy Court for the
Southern District of New York has approved the Disclosure
Statement explaining Satelites Mexicanos, S.A. de C.V.'s First
Amended Plan of Reorganization.

Judge Drain determined that the Debtor's Disclosure Statement
contained adequate information -- the right amount of the right
kind -- required under Section 1125 of the Bankruptcy Code.  With
a Court-approved Disclosure Statement in hand, Satmex can now ask
creditors to vote to accept its Plan.

Ballots accepting or rejecting the Plan must be received no later
than 4:00 p.m., Eastern Time, on Oct. 20, 2006, by Kurtzman Carson
Consultants, Inc., the Debtor's notice and balloting agent.

The Court will convene a hearing at 10:00 a.m., Eastern Time, on
Oct. 26, 2006, to consider confirmation of Satmex's plan.

Objections to confirmation of the Debtor's chapter 11 plan must be
served so that they are actually filed and received no later than
4:00 p.m., on Oct. 20, 2006, by:

     1) The Clerk of the Court
        U.S. Bankruptcy Court
        Southern District of New York
        One Bowling Green
        New York, NY 10004

     2) Milbank, Tweed, Hadley and McCloy LLP
        Attn: Matthew S. Barr, Esq.
              Jessica L. Fink, Esq.
        Counsel for Satmex
        One Chase Manhattan Plaza
        New York, NY 10005

     3) Office of the U.S. Trustee
        Southern District of New York
        Attn: Tracy Hope Davis, Esq.
        33 Whitehall Street, 21st floor
        New York, NY 10004.

     4) Akin Gump Strauss Hauer & Feld LLP
        Attn: Steven Scheinman, Esq.
              Michael S. Stamer, Esq.
              Shuba Satyaprasad, Esq.
        Counsel to the Ad Hoc Bondholders' Committee
        590 Madison Avenue
        New York, NY 10022-2524

     5) Wilmer Cutler Pickering Hale and Dorr LLP
        Attn: Dennis Jenkins, Esq.
              George W. Shuster, Jr., Esq.
        Counsel to the Ad Hoc Noteholders' Committee

     6) Weil, Gotshal & Manges LLP
        Attn: Shai Y. Waisman, Esq.
              Rachel Albanese, Esq.
        Counsel for Loral
        767 Fifth Avenue, New York, NY 10153

     7) The Secretaria de Comunicaciones y Transportes of the
        Mexican Government
        Attn: Ing. Leonel Lopez Celaya
              Director General de Politicas de
              Telecomunicaciones
        Av. Xola S/N, Col. Narvarte C.P. 03020
        Mexico, D.F.

     8) Thomas S. Heather Rodriguez
        White & Case, S.C.
        Torre del Bosque - PH,
        Blvd. Manuel Avila Camacho #24
        Col. Lomas de Chapultepec 11000
        Mexico, D.F.,

     9) Citibank, N.A.,
        Attn: Jenny Cheng
        Indenture Trustee under the Senior Secured Note Indenture
        388 Greenwich St., 14th Floor
        New York, NY 10013

    10) Nixon Peabody LLP
        Attn: Dennis J. Drebsky, Esq.
              Richard J. Bernard, Esq.
        Counsel for Citibank, N.A.
        437 Madison Avenue
        New York, NY 10022-7001

    11) The Bank of New York
        Attn: Ming J. Shiang
        Indenture Trustee under the Existing Bond Indenture
        101 Barclay Street, Floor 21 West
        New York, NY 10286

    12) Baker & McKenzie LLP
        Attn: Joseph Samet, Esq.
              Ira Reid, Esq.
        Counsel for The Bank of New York
        1114 Avenue of the Americas
        New York, NY 10036

The Troubled Company Reporter disclosed yesterday that the
Debtor's Plan has the support of:

   -- Servicios, Loral and Principia;

   -- the beneficial holders of more than 67% of the
      10-1/8% Unsecured Senior Notes due Nov. 1, 2004; and

   -- the beneficial holders of more than 67% of the Senior
      Secured Floating Rate Notes due June 30, 2004.

A blacklined copy of the Debtor's First Amended Plan is available
at no charge at http://ResearchArchives.com/t/s?1178

A blacklined copy of the Debtor's First Amended Disclosure
Statement is available at no charge at:

             http://ResearchArchives.com/t/s?1179

                   About Satelites Mexicanos

Satelites Mexicanos, S.A. de C.V., provides fixed satellite
services in Mexico.  Satmex provides transponder capacity via its
satellites to customers for distribution of network and cable
television programming, direct-to-home television service, on-site
transmission of live news reports, sporting events and other video
feeds.  Satmex also provides satellite transmission capacity to
telecommunications service providers for public telephone networks
in Mexico and elsewhere and to corporate customers for their
private business networks with data, voice and video applications.
Satmex also provides the government of the United Mexican States
with approximately 7% of its satellite capacity for national
security and public purposes without charge, under the terms of
the Orbital Concessions.

The Debtor filed for chapter 11 petition on August 11, 2006
(Bankr. S.D.N.Y. Case No. 06-11868).  Luc A. Despins, Esq., at
Milbank, Tweed Hadley & McCloy LLP represents the Debtor in the
U.S. Bankruptcy proceedings.  Attorneys from Galicia y Robles,
S.C., and Quijano Cortina Lopez y de la Torre give legal advice in
the Debtor's Mexican Bankrutpcy proceedings.  UBS Securities LLC
and Valor Consultores, S.A. de C.V., give financial advice to the
Debtor.  Steven Scheinman, Esq., Michael S. Stamer, Esq., and
Shuba Satyaprasad, Esq., at Akin Gump Strauss Hauer & Feld LLP
give legal advice to the Ad Hoc Existing Bondholders' Committee.
Dennis Jenkins, Esq., and George W. Shuster, Jr., Esq., at Wilmer
Cutler Pickering Hale and Dorr LLP give legal advice to Ad Hoc
Senior Secured Noteholders' Committee.  As of July 24, 2006, the
Debtor has $905,953,928 in total assets and $743,473,721 in total
liabilities.

On May 25, 2005, certain holders of Satmex's Existing Bonds and
Senior Secured Notes filed an involuntary chapter 11 petition
against the Company (Bankr. S.D.N.Y. Case No. 05-13862).
On June 29, 2005, Satmex filed a voluntary petition for a Mexican
reorganization, known as a Concurso Mercantil, which was assigned
to the Second Federal District Court for Civil Matters for the
Federal District in Mexico City.

On August 4, 2005, Satmex filed a petition, pursuant to Section
304 of the Bankruptcy Code to commence a case ancillary to the
Concurso Proceeding and a motion for injunctive relief seeking,
among other things, to enjoin actions against Satmex or its assets
(Bankr. S.D.N.Y. Case No. 05-16103).


SBARRO INC: Posts $1.25 Mil. Net Loss in Quarter Ended July 16
--------------------------------------------------------------
Sbarro, Inc., incurred a $1,258,000 net loss on $75,661,000 of
revenues for the three months ended July 16, 2006, compared to a
$3,311,000 net loss on $74,644,000 or revenues for the three
months ended July 17, 2005.

At July 16, 2006, the Company's balance sheet showed $382,035,000
in total assets, $40,467,000 in current liabilities, $268,621,000
in long-term debt, deferred rent of $8,782,000 and stockholders'
equity of $64,165,000.

A full-text copy of the Company's quarterly report is available
for free at http://researcharchives.com/t/s?1185

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria".  Total revenues for fiscal 2005 were
approximately $348 million.

                        *    *    *

Moody's Investors Service upgraded on July 10, 2006, both the
corporate family and senior unsecured ratings of Sbarro, Inc.,
to Caa1 from Caa2 while at the same time changed the ratings
outlook to positive from negative.


SBARRO INC: To Open 100 Restaurants in India With RTC
-----------------------------------------------------
Sbarro, Inc., disclosed a joint venture deal with India-based RTC
to open 100 restaurants in India.

Sbarro's joint venture with RTC, Sbarro Restaurants (India)
Limited, will develop and operate India's first Sbarro restaurants
in New Delhi by 2007, with 10 units opening every year over the
next 10 years.  The majority of the restaurants will be located
within shopping malls in major metropolitan areas such as New
Delhi and Mumbai.  Earlier this year, Sbarro announced agreements
to open more than 75 units in regions across the globe, including
Mexico, Egypt, Romania, Central America and The Bahamas.

"Our joint venture with RTC will result in Sbarro's largest
international expansion to date and allows us to introduce our
authentic Italian food to yet another culture," said Peter
Beaudrault, president and CEO of Sbarro.  "With 250 malls in
development, India presents a huge opportunity for Sbarro and we
look forward to working with RTC to establish our brand in the
Indian marketplace."

Sbarro will be the first restaurant in India to offer pizza by the
slice and a full Italian menu.  Menu items will be tailored to the
religious and ethnic preferences of the Indian culture and will
exclude beef products and meat-based pasta sauces.  Additionally,
Sbarro chefs will create a variety of new vegetarian dishes to
appeal to the largely vegetarian population.

Sbarro, Inc. -- http://www.sbarro.com/-- headquartered in
Melville, New York, is a leading quick service restaurant chain
that serves Italian specialty foods.  As of April 23, 2006, the
company owned and operated 482 and franchised 491 restaurants
worldwide under brand names such as "Sbarro,", "Umberto's," and
"Carmela's Pizzeria".  Total revenues for fiscal 2005 were
approximately $348 million.

                        *    *    *

Moody's Investors Service upgraded on July 10, 2006, both the
corporate family and senior unsecured ratings of Sbarro, Inc.,
to Caa1 from Caa2 while at the same time changed the ratings
outlook to positive from negative.


SEAGATE TECHNOLOGY: Earns $840 Million for Fiscal Year 2006
-----------------------------------------------------------
Seagate Technology submitted its annual financial report on Form
10-K to the Securities and Exchange Commission on Sept. 11, 2006.

Revenue for fiscal year 2006 was approximately $9.2 billion, up
22% from approximately $7.6 billion in fiscal year 2005.  The
increase in revenue was primarily due to record disc drive
shipments of 118.7 million units in fiscal year 2006 compared to
98.1 million units in fiscal year 2005.

For the fiscal year ended June 30, 2006 net income was
$840 million versus net income of $707 million for the prior
fiscal year.

The Company had approximately $1.7 billion in cash, cash
equivalents and short-term investments at June 30, 2006, which
includes $910 million of cash and cash equivalents.  Cash and cash
equivalents increased by $164 million during fiscal year 2006, up
from $746 million at July 1, 2005.  The increase primarily
provided by cash from operations of approximately $1.5 billion.

The Company disclosed that it has a $100 million revolving credit
facility that matures in November 2008, which is available for
cash borrowings and for the issuance of letters of credit up to
$100 million.  No borrowing has been drawn under the revolving
credit facility.  The Company utilized $31 million for outstanding
letters of credit and bankers' guarantees as of June 30, 2006.
The Company also had other uncommitted unsecured credit lines
totaling $21 million at June 30, 2006.  As of June 30, 2006, a
total of $8 million of letters of credit and bank guarantees were
outstanding under the facilities.

The Company also disclosed that during fiscal year 2006 dividends
aggregating approximately $155 million were paid to its common
shareholders.

As a result of the Maxtor acquisition, the Company assumed all
debts and liabilities of Maxtor Corporation, together with cash
and short-term investments, and any consolidated indebtedness of
Maxtor Corporation outstanding at May 19, 2006, including its
outstanding convertible senior notes, which were consolidated with
the Company's indebtedness.

The Company repurchased a total of approximately 16.7 million
common shares for approximately $400 million during the quarter
ended June 30, 2006, all of which were retired and therefore not
available for reissue.  In July 2006, its board of directors
approved an additional share repurchase of up to $2.5 billion of
common shares over the next two years.

A full text-copy of Seagate Technology's financial report for the
fiscal year 2006 may be viewed at no charge at:

              http://ResearchArchives.com/t/s?117f

Headquartered in Scotts Valley, California, Seagate Technology
(NYSE: STX) -- http://www.seagate.com/-- is the worldwide leader
in the design, manufacturing and marketing of hard disc drives,
providing products for a wide-range of Enterprise, Desktop, Mobile
Computing, and Consumer Electronics applications.  Seagate's
business model leverages technology leadership and world-class
manufacturing to deliver industry-leading innovation and quality
to its global customers, and to be the low cost producer in all
markets in which it participates.  The company is committed to
providing award-winning products, customer support and reliability
to meet the world's growing demand for information storage.


SEAGATE TECH: Moody's Holds Ba2 Rating on $60 Million Debentures
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Seagate
Technology HDD Holdings and the ratings of Maxtor Corporation, a
wholly owned subsidiary of Seagate Technology US Holdings.  At the
same time, Moody's assigned new ratings to a proposed new debt
issuance of $1.25 billion to finance Seagate's recently announced
$2.5 billion stock buyback program, as well as refinance Seagate's
existing $400 million 2009 notes.

These ratings were affirmed:

     * Seagate's Corporate Family Rating -- Ba1

     * Maxtor's remaining $135 million of the $230 million,
       6.8% convertible senior notes, due 2010 -- Ba1

     * Maxtor Corporation's $60 million 5-3/4% convertible
       subordinated debentures, due 2012 -- Ba2

     * SGL Rating -- SGL--1

These ratings were assigned:

     * Floating rate notes due 2009 (amount to be determined)
       -- Ba1

     * Senior notes due 2011 (amount to be determined) -- Ba1

     * Senior notes due 2016 (amount to be determined) -- Ba1

These ratings will be withdrawn upon refinancing:

     * Seagate's $400 million senior notes 8%, due 2009 -- Ba1

The rating outlook remains stable.

The ratings continue to reflect Seagate's dominant position in the
disk drive industry and incorporate the sector's capital
intensity, volatility, and the commoditized nature of the disk
drive business that is characterized by short product life-cycles
and maturation linked ASP declines.

Seagate's financial performance has been robust in recent years
with generally stable gross margins, improving operating margins,
and increasing generation of free cash flow.  As a result, credit
metrics are strong for the Ba1 rating category.

Moody's is increasingly subscribing to the view that the HDD
industry volatility may have become less severe going forward due
to the sector's on-going consolidation, channel visibility may
have improved which may reduce excess inventory buildup in the
future, and Seagate's credit metrics may be less impacted in the
next down cycle.

However, several factors offset the company's strong metrics and
possible upward pressure on the ratings currently.  Key among
these is a more aggressive financial policy, as partly evidenced
by the current largely debt-financed share buyback, and the
possibility that leverage may increase further in the future.

Other factors Moody's has cited previously are execution risk in
the current product transitioning to perpendicular technology, and
some integration risks vis-a-vis the Maxtor acquisition, both of
which we will evaluate over the next 12-18 months as the company
completes its product transitioning and the Maxtor integration.

What could move the ratings up:

   1) Continued strong financial performance, including revenue
      growth consistent with industry growth, stable to improving
      profitability metrics, and free cash flow generation despite
      a sizable step-up in capital expenditures planned for the
      next two years;

   2) Maintenance of a reasonable capital structure, including
      prudent management of share buybacks and dividends, with
      credit metrics maintained at current levels, pro forma for
      current financings;

   3) Successful product transitioning to perpendicular technology
      and integration of the Maxtor acquisition; and

   4) Greater visibility with respect to management's future
      acquisition strategies and financial policies following the
      company's transition from private to public ownership.

What could move the ratings down:

   1) Significant decline in cash flow generation as a result of
      product transitioning issues vis-a-vis perpendicular
      technology, the Maxtor integration, and emerging technology
      becoming a more meaningful threat;

   2) Significant increase in leverage as a result of dividends
      and additional share buyback programs; and

   3) Significant decline in the company's liquidity position as a
      result of operating issues and/or funds returned to
      shareholders.

Seagate, with primary offices in Scotts Valley, California, is a
worldwide leader in the design, manufacture and marketing of rigid
disc drive products used as the primary medium for storing
electronic information in systems ranging from personal computers
and consumer electronics to data centers delivering information
over corporate networks and the Internet.


SILICON GRAPHICS: Taxing Authorities Oppose Amended Plan
--------------------------------------------------------
Dallas County, Harris County/City of Houston, and Houston
Independent School District does not approve of the provision
found in Silicon Graphics, Inc., and its debtor-affiliates' First
Amended Joint Plan of Reorganization which states that the Taxing
Authorities' tax claims will be paid in semi-annual payments for
five years, at the sole option of the Debtors or the Reorganized
Debtors.

The Taxing Authorities complain that a semi-annual payment for
five years is insufficient to protect the present value of their
claims over an extended term.   The Taxing Authorities want the
Debtors to either pay their claim in full or to make equal monthly
installments until the Claims are paid.

In addition, the Taxing Authorities oppose the proposed Plan:

    -- as it fails to specify that the Taxing Authorities retain
       their liens on the Debtors' property until their secured
       claims are paid in full; and

    -- due to the exclusion of adequate provisions in the event of
       default.

The Taxing Authorities demand protection of prompt payment of
principal and interest on their Claims and retention of all lien
rights.

Headquartered in Mountain View, California, Silicon Graphics, Inc.
(OTC: SGID) -- http://www.sgi.com/-- offers high-performance
computing.  SGI helps customers solve their computing challenges,
whether it's sharing images to aid in brain surgery, finding oil
more efficiently, studying global climate, providing technologies
for homeland security and defense, enabling the transition from
analog to digital broadcasting, or helping enterprises manage
large data.  The Debtor and 13 of its affiliates filed for chapter
11 protection on May 8, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10977
through 06-10990).  Gary Holtzer, Esq., and Shai Y. Waisman, Esq.,
at Weil Gotshal & Manges LLP, represent the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed total assets of $369,416,815 and
total debts of $664,268,602.  The Debtors' exclusive plan-filing
period will expire on Dec. 29, 2006, and its exclusive
solicitation period will expire on Feb. 28, 2007.  (Silicon
Graphics Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000)


SITI-SITES.COM: Files Plan of Final Liquidation and Dissolution
---------------------------------------------------------------
Siti-sites.com, Inc., filed a preliminary form of Information
Statement with the Securities and Exchange Commission,
contemplating a written consent by a majority of stockholders to a
Plan of Final Liquidation and Dissolution, without a stockholders'
meeting or any solicitation of proxies.

Siti's board of directors unanimously approved the Plan, and
Siti's largest shareholder Lawrence M. Powers informed the board
that he expects to enter into a written consent to the Plan.  His
shares, beneficially owned with his son, amount to 46.1% of those
outstanding.  Other large stockholders in an overall total
comprising some 83 % of outstanding shares will be invited to
review the Plan when it is in appropriate form in the final
Information Statement, and consent in writing it, or withhold
consent.  A majority vote by giving written approval and consent
to the Plan under Delaware law appears likely.  No meeting of
stockholders is expected to be held, and Siti is not asking any
stockholders for a proxy.  The Company's method of seeking
consents from its large stockholders, without a meeting or any
proxy solicitation, is being done to conserve the limited cash
available at present ($279,000 as of Aug. 31, 2006).  The Plan is
expected to become effective after distribution of the final
Information Statement, followed by majority consent, in or about
October 2006.  If, however, for any reason appropriate written
consents are not obtained, a meeting of stockholders shall be duly
called for such purpose.

The final form of Information Statement will be mailed to those
stockholders shown of record as of Sept. 25, 2006, unless
unforeseen circumstances require an adjourned date.

                        Reasons for Plan

The Plan formalizes the ongoing liquidation of Siti pending since
2002, which recently resulted in a $.15 per share liquidating
dividend ($4,504,000) paid pro rata to all stockholders, resulting
from the settlement of certain litigation.  It was the first time
that Siti had any funds available to distribute to stockholders
since its liquidation was commenced in 2002.  A Summary of the
Plan, and its basis in the Underlying Facts on Siti's Liquidation,
is expected to be included in the final form of Information
Statement.

The main points of the Plan are to conserve Siti's limited
remaining cash assets from the recent settlement after payment of
its first liquidating dividend in April, 2006, by taking steps
under Delaware law to enter final liquidation and dissolution of
the corporation in 2006, under the various phases provided
therefore in Delaware law.  Many of its ongoing accounting, stock
transfer, legal and other costs as a public company after 2006
should be saved.  Siti has no creditors that have not been paid or
provided for in the Plan, Siti never made any material borrowings,
and all earlier claims have been fully satisfied since liquidation
began in 2002.

The Plan, however, provides for continuing efforts to obtain
Siti's share of gross receipts as a creditor of the substantial
patent portfolio in issue in the litigation that has been settled
amicably.  These efforts are expected to continue at least three
years or much longer while Siti is in Delaware dissolution
proceedings.  Siti may ultimately enter into a liquidation trust
for the benefit of former stockholders in the liquidation.

Based on several months of cooperative reporting and dealings with
the company owning the patent portfolio, Siti cannot realistically
expect any material recovery as a creditor of such company, for
some 12 to 18 months.  Siti is not conducting, and does not plan
to conduct any ongoing business, other than these collection
activities under the settlement agreement.

Siti also determined in late August 2006 to abandon any further
activity to generate a "reverse-merger" transaction which might
yield a nominal amount of stock for its shareholders in
liquidation, because of a lack of success over the past five years
in finding an appropriate transaction.

              Cancellation of Shares in Liquidation

The Plan provides for cancellation of all outstanding shares of
Siti, in exchange for the liquidating distribution made in April
2006 and any further liquidating distributions that become
possible in the future, during the extensive life of the patent
portfolio (expiring 2009 through 2021) covered by the settlement.
The Plan covers all such distributions, if any.

After review and likely stockholder consent to the Plan expected
in October 2006, the certificate of dissolution will be filed in
Delaware, and further trading in the shares of Siti are expected
to cease.  The cash amounts distributed to shareholders in
liquidation of Siti, in April 2006 or hereafter distributed to
shareholders, if any, shall be deemed and treated as being in full
payment in exchange for the stock of Siti pursuant to Section 331
of the U.S. Internal Revenue Code.  The Plan provides for
cessation of trading by prompt cancellation of the shares 30 days
after its effective date, anticipated in November or December
2006.  The shares of stock will not be freely transferable
thereafter.  The list of former Siti shareholders of record will
be used solely to determine their pro rata entitlement to any
future cash payments under the Plan that may become possible.  The
right to participate will be transferable only by operation of
laws of inheritance, succession or otherwise, and the cancelled
stock certificate of each former shareholder will be the primary
source of its or its successor owner's right to receive any future
liquidating dividend payments.  Siti will maintain the former
shareholder records presently held at its Stock Transfer Agent as
long as practicable to facilitate any future cash distributions.

A full-text copy of the preliminary Information Statement is
available for free at http://ResearchArchives.com/t/s?1190

                      About Siti-sites.com

Headquartered in New York City, Siti-Sites.com, Inc. (Pink Sheets:
SITN), was an Internet media company with three websites for the
marketing of news and services.  The Company's websites related
entirely to the music industry.


SMURFIT-STONE: Moody's Affirms Senior Unsecured Rating at B2
------------------------------------------------------------
Moody's Investors Service affirmed the long-term debt ratings and
outlook for Smurfit-Stone Container Corporation's main operating
company, Smurfit-Stone Container Enterprises Inc.  SSCE has a B1
corporate family rating, a Ba3 senior secured rating, and a B2
senior unsecured rating.  The rating outlook is negative.

Concurrent with the rating action, Moody's upgraded the company's
speculative grade liquidity rating to SGL-2.  The ratings continue
to depend on significant sustainable improvements in margins and
credit metrics. Containerboard and corrugated box pricing has
improved dramatically over the past six to nine months.

While recent rolling-four-quarters' profitability and credit
measures have been at a deep discount to those appropriate for the
company's ratings, Moody's anticipates that subsequent quarters
will show continued improvement.

Results for 2006 are expected to be roughly in-line with the
current ratings, with further improvement being shown into 2007.
However, containerboard and corrugated box pricing is not expected
to be sustainable at current levels.  As economic growth slows,
there is the potential of pricing coming under pressure, or,
alternatively, of production being curtailed.  In either case,
cash flow is expected to moderate over time as economic activity
fluctuates.

Consequently, the company's ability to internalize benefits from
an ongoing significant restructuring program will determine what
portion of near-term cash flow improvement is sustainable.

In addition to risks that economic activity may slow more quickly
than expected, cost inflation, restructuring execution risks, the
time delay before the benefits can be realized, and the costs of
funding related activities all contribute to uncertainty over
normalized credit metrics.  Accordingly, the rating outlook
remains negative.

With respect to the upgrade to the speculative grade liquidity
rating, it is noted that on May 11, 2006, SSCC announced an
agreement to sell all of the assets of its consumer packaging
business to a company formed by Texas Pacific Group, a financial
investor.  The announced sale price was approximately $1.04
billion in cash.  At the time, Moody's estimated that fully
adjusted debt would decline by some 18%, but that consolidated
cash flow would decline by a like amount. Therefore, the
transaction was not expected to improve the company's credit
metrics and had no impact on long term ratings or the related
outlook.

On June 30, 2006, the sale transaction was completed with SSCE
receiving cash proceeds of $902 million (excluded $126 million for
certain accounts receivable that were previously sold under an
accounts receivable securitization program).  The proceeds were
used to repay indebtedness, with senior secured debt being reduced
by $458 million and senior unsecured debt being reduced by $400
million.  Repayment of an additional $20 million of other debt and
the payment of $24 million of tender premia and fees consumed the
balance.

Of the $400 million reduction in senior secured indebtedness, $218
million was applied against amounts outstanding in the company's
revolving credit facility.  The replenishment of liquidity is seen
as a key component of the transaction, providing much needed
funding (and cushion in the event of unforeseen events) for the
ongoing expense of restructuring the asset portfolio and
operations.  Together with amendments to related financial
covenants, this facilitated the upgrade in the speculative grade
liquidity rating to SGL-2, indicating good liquidity.

Upgrades:

     * Issuer: Smurfit-Stone Container Enterprises, Inc.

     * Speculative Grade Liquidity Rating, Upgraded to SGL-2
       from SGL-3

Moody's plans to supplement its traditional assessment of expected
loss with a proposed Loss-Given-Default Methodology for which a
request for comment was circulated during January 2006.  Research
by Moody's suggests that the realized credit losses on loans have
tended to be lower than losses on similarly rated bonds.

Moody's research further suggests that the application of a
rigorous estimation model for LGD could support a higher degree of
up-notching for bank facilities than has been the case with
Moody's traditional notching methodology which ascribes
considerable importance to asset coverage.  Additionally, ratings
on senior unsecured and subordinated may change as a result of the
LGD methodology.  Upon the implementation of this new methodology,
Moody's will, if necessary, adjust the ratings of SSCE's debt
instruments accordingly.

Headquartered in Chicago, Illinois, Smurfit-Stone Container
Corporation is a publicly traded holding company that operates
through a wholly owned subsidiary company, Smurfit-Stone Container
Enterprises Inc.  The company is an integrated producer of
containerboard and corrugated containers (paper-based industrial
packaging) and is a large collector, marketer, and exporter of
recycled fiber.  Operations are located throughout North America.
Containerboard and corrugated containers account for approximately
95% of SSCE's consolidated revenues.  This segment supplies
hundreds of national and international manufacturers and consumer
products companies, as well as thousands of local and regional
customers.  The company also produces market pulp, kraft paper and
boxboard.


SOLUTIA INC: Court Expands Colliers Turley's Scope of Duties
------------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
authorizes Solutia Inc. and its debtor-affiliates to expand the
scope of Colliers Turley Martin Tucker' employment as their
exclusive real estate brokers.

Colliers is expected to:

   (1) assist them in selling or renting of certain parcels of
       real estate that they own, including about 135 acres of
       property located in Houston, Texas; and

   (2) locate and negotiate a lease for about 18,000 square feet
       of office property in Kennesaw, Georgia, or assist them in
       the renegotiation of the existing lease of their Kennesaw
       office.

For these additional assignments, the Debtors signed a Master
Exclusive Listing Agreement and an Exclusive Tenant
Representation Agreement with Colliers on May 3, 2006.

The Listing Agreement runs from May 3, 2006, through the date it
is terminated by either party for cause at any time or without
cause by giving the other party 30 days advance written notice of
intention to terminate.

Colliers will be paid for its services under the Listing
Agreement with a monthly retainer plus commission, which will
depend on whether the Property is sold, leased or re-leased to
the current tenant.  The retainer payments will be deducted from
the net commission to be paid to Colliers.

The term of the Tenant Agreement is from May 3, 2006 through
Dec. 31, 2006, or any earlier date determined by the Debtors
in their sole discretion.

Colliers will be paid for its services under the Tenant Agreement
on a commission basis.  Colliers' commission will depend on
whether the Debtors relocate their Kennesaw office to a new
facility or renegotiate their existing lease and remain in the
current facility.

The Debtors believe that Colliers is both well qualified and
uniquely able to serve them in an efficient, cost-effective and
timely manner.

David Thiemann, vice president of Colliers, assures the Court
that Colliers is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code, and holds no interest adverse to
the Debtors and their estate.

Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949).  When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts.  Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 68; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


SOLUTIA INC: Ad Hoc Panels Wants Court to Reject Incentive Plan
---------------------------------------------------------------
The Ad Hoc Trade Committee and the Ad Hoc Noteholders Committee of
Solutia Inc. and its debtor-affiliates ask the U.S. Bankruptcy
Court for the Southern District of New York to deny the Debtors'
request to implement its 2006 Annual Incentive Program.

                          Objections

(1) Ad Hoc Trade Committee

The Ad Hoc Solutia Trade Claims Committee says that the proposed
benchmarks for bonuses to be given to management under the
Debtors' 2006 Incentive Program must be tied to the Debtors'
emergence from bankruptcy protection.

The Debtors are at a critical juncture in their cases, and given
that the Plan of Reorganization stage has stalled, the primary
goal of management must be to get the Plan back on track toward a
successful emergence of the Debtors, Steven D. Pohl, Esq., at
Brown Rudnick Berlack Israels LLP, in Boston, Massachusetts,
states.

Although the Debtors contend that the 2006 Incentive Program is
designed to focus and align the employees' goals with those of
the company, it is difficult to understand how it is that
implementing a program eight months into the relevant time period
could ever achieve that goal, Mr. Pohl says.

The Ad Hoc Trade Committee says that the Debtors should provide
basic information to the Court for better assessment whether the
target metrics are being set at appropriate levels.

Mr. Pohl notes that the Debtors should also provide the
evidentiary basis necessary to justify expenditures of as much as
$25,200,000 that could be paid out under the Incentive Program.

The Ad Hoc Trade Committee asks the Court to deny the Debtors'
request, or in the alternative, modify the Incentive Program to
ensure that management is properly motivated to ensure the
Debtors' prompt emergence from bankruptcy protection and that
creditor recoveries are maximized.

(2) Ad Hoc Noteholders Committee

The Ad Hoc Committee of Solutia Noteholders disagrees with the
"business as usual" approach of the Incentive Program and
suggests that:

   (a) the Debtors should be required to submit evidence making a
       sufficient public record that the Incentive Program is
       structured to meet its stated goals;

   (b) little, if any, weight should be given to the Court's
       prior approval of similar programs for 2004 and 2005,
       especially since the Incentive Program awards at a
       multiple of up to three times target bonus compensation
       compared to 2.25 in 2005 and 2.0 in 2004;

   (c) the Incentive Program should reflect the creditors' desire
       for the Debtors' senior management to focus its energies
       on confirming a consensual reorganization plan promptly;
       and

   (d) the timing of payments under the Incentive Program to
       senior management should be tied to the achievement of one
       or more objective milestones in the reorganization
       process.

The Ad Hoc Noteholders Committee asks the Court to disapprove the
Incentive Program unless the Debtors make a proper evidentiary
showing and the Incentive Program is amended to provide for
structured payments to senior managers to encourage the Debtors'
prompt emergence from bankruptcy.

(3) JP Morgan Chase Bank

JPMorgan Chase Bank, as Indenture Trustee, joins in the Ad Hoc
Noteholders Committee's Objection, and asks the Court to deny the
Debtors' request to implement the Incentive Program.

                       About Solutia Inc.

Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ)
-- http://www.solutia.com/-- with its subsidiaries, make and sell
a variety of high-performance chemical-based materials used in a
broad range of consumer and industrial applications.  The Company
filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y.
Case No. 03-17949).  When the Debtors filed for protection from
their creditors, they listed $2,854,000,000 in assets and
$3,223,000,000 in debts.  Solutia is represented by Richard M.
Cieri, Esq., at Kirkland & Ellis.  Daniel H. Golden, Esq., Ira S.
Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss
Hauer & Feld LLP represent the Official Committee of Unsecured
Creditors, and Derron S. Slonecker at Houlihan Lokey Howard &
Zukin Capital provides the Creditors' Committee with financial
advice.  (Solutia Bankruptcy News, Issue No. 68; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


STELCO INC: Employees Campaign to Join United Steelworkers Union
----------------------------------------------------------------
Salaried employees working at Stelco Inc.'s operations in Hamilton
and Nanticoke are engaged in a campaign to join the United
Steelworkers.

There are more than 700 office, administrative and technical staff
working for Stelco in Hamilton and Nanticoke.

"Support is strong and growing for this campaign, and we are
committed to helping these employees," said USW Ontario/Atlantic
Director Wayne Fraser.  "Together we'll help them build their own
new local union and develop a collective agreement that meets
their unique needs.

"These are hard-working people who have given years to Stelco.
They deserve to have a real voice in the decisions that affect
them at work.  They have watched our locals at Lake Erie and
Hilton Works win good new collective agreements, which protect
their terms of employment and secure strong increases and
improvements, even during bankruptcy protection proceedings.

"Meanwhile, salaried employees have had cuts and rollbacks imposed
on them.  Stelco's restructuring took a big whack at these folks
and that is just not right.  They deserve a fair deal, and as
Steelworkers they'll have the ability to get it."

                            About Stelco

Stelco, Inc. -- http://www.stelco.ca/-- is a large, diversified
steel producer.  Stelco is involved in all major segments of the
steel industry through its integrated steel business, mini-mills,
and manufactured products businesses.  The court-supervised
restructuring is designed to establish the Company as a viable and
competitive producer for the long term.  The new Stelco will be
focused on its Ontario-based integrated steel business located in
Hamilton and in Nanticoke.  These operations produce high quality
value-added hot rolled, cold rolled, coated sheet and bar
products.

In early 2004, after a thorough financial and strategic review,
Stelco concluded that it faced a serious viability issue.  The
Corporation incurred significant operating and cash losses in 2003
and believed that it would have exhausted available sources of
liquidity before the end of 2004 if it did not obtain legal
protection and other benefits provided by a Court-supervised
restructuring process.  Accordingly, on Jan. 29, 2004, Stelco and
certain related entities filed for protection under the Companies'
Creditors Arrangement Act.

The Court extended the stay period under Stelco's Court-supervised
restructuring from Dec. 12, 2005, until March 31, 2006.

The Company emerged from its Court-supervised restructuring on
March 31, 2006.  At that time, new common shares will be issued
under the approved restructuring plan and are expected to begin
trading on the TSX on April 3, 2006, subject to certain
conditions.


SUNWOOD VILLAGE: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------------
Debtor: Sunwood Village Joint Venture, Limited Partnership
        4020 S. Arville
        Las Vegas, NV 89103

Bankruptcy Case No.: 06-12463

Type of Business: The Debtor owns and operates an apartment
                  Complex.

Chapter 11 Petition Date: September 12, 2006

Court: District of Nevada (Las Vegas)

Judge: Bruce A. Markell

Debtor's Counsel: Laurel E. Davis, Esq.
                  Lionel Sawyer & Collins
                  300 S. 4th St. #1700
                  Las Vegas, NV 89101
                  Tel: (702) 383-8866
                  Fax: (702) 383-8845

Total Assets: $15,500,733

Total Debts:  $9,554,124

Debtor's 20 Largest Unsecured Creditors:

   Entity                     Nature of Claim       Claim Amount
   ------                     ---------------       ------------
Mega Ventures, LLC            Claim for                  $24,075
Attn: Michael Singer          reimbursement of
520 South Fourth St.          costs to perform
Las Vegas, NV 89101           under terminated
                              purchase agreement

Lange Plumbing LLC            Trade Creditor              $4,672
4690 Judson Ave., Ste. A
Las Vegas, NV 89115

Home Depot                    Trade Creditor              $1,822
P.O. Box 509058
San Diego, CA 92150

Brock Interiors, Inc.         Trade Creditor              $1,521
P.O. Box 20067
Phoenix, AZ 85036

Lawyer Mechanical Services,   Trade Creditor              $1,511
Inc.
3036 S. Valley View Blvd.
Las Vegas, NV 89102

For Rent Magazine             Trade Creditor              $1,138
75 Remittance Dr.
Chicago, IL 60675

Universal Carpet Care         Trade Creditor              $1,125
3111 S. Valley View Blvd.
Suite N-102
Las Vegas, NV 89102

Nevada Power Company          Trade Creditor                $925

Melani Enterprises            Trade Creditor                $617

Doorpro, Inc.                 Trade Creditor                $542

Labor Ready Southwest, Inc.   Trade Creditor                $540

Cleaning Queen                Trade Creditor                $535

Valley Green Landscape, Inc.  Trade Creditor                $375

Mike Crux                     Refund security               $350
                              Deposit

Redesigning Surfaces, Inc.    Trade Creditor                $235

Cherokee Blinds & Doors       Trade Creditor                $250

Las Vegas Review Journal      Trade Creditor                $115

Cintas Corporation #59        Trade Creditor                 $94

Consumer Source, Inc.         Trade Creditor                 $93

Rent A Banner                 Trade Creditor                 $84


THERMADYNE HOLDINGS: Sees $5.8 Mil. Net Loss in 2006 2nd Quarter
----------------------------------------------------------------
Thermadyne Holdings Corporation reported preliminary results for
the second quarter and six months ended June 30, 2006.

The Company does not expect any material changes from these
results when it files its Quarterly Report on Form 10-Q for the
period ended June 30, 2006 with the SEC.  This filing has been
delayed as a result of the recently completed restatements of
prior-period results and the search for a new independent
registered public accounting firm due to the recent resignation of
Ernst & Young, LLP.  The Company will file the Form 10-Q as soon
as practicable after appointment of a new accounting firm.

Thermadyne Holdings Corporation reported a net loss of
$5.8 million for the second quarter ended June 30, 2006.  This
compares with a net loss of $900,000 for the same period ended
June 30, 2005, including a loss of $1.6 million from continuing
operations and income of $700,000 from discontinued operations in
the comparable prior-year period.

For the six-month period ended June 30, 2006, the Company reported
a net loss of $7.2 million consisting of a loss of $6.9 million
from continuing operations and a loss of $300,000 from
discontinued operations as compared with the six-month period
ended June 30, 2005 a net loss of $1.7 million, consisting of a
loss of $2.9 million from continuing operations and income of
$1.2 million from discontinued operations for the period in 2005.

For the three months and six months ended June 30, 2006, net loss
from continuing operations was $5.8 million and $6.9 million as
compared to a net loss from continuing operations of $1.6 million
and $2.9 million in the 2005 comparable quarter and six months,
respectively.

In the second quarter of 2006, net sales from continuing
operations rose to $127.5 million, an increase of 7.4% from the
same quarter of 2005.   For the six months ended June 30, 2006,
net sales from continuing operations of $250.4 million increased
9.3% over the same period of 2005.

"We are encouraged by our continued sales increases.  We are
particularly pleased to see that nearly 50% of our sales increases
were from customer purchases of new products.  Strong demand,
particularly in the Americas, for our gas equipment, arc
accessories and plasma lines has continued during the second
quarter," commented Paul D. Melnuk, the Company's Chairman and
CEO.

The Company has maintained margins despite commodity prices that
have escalated materially since mid-2005.  In 2006, the year-over-
year inflation impact for the commodities and components purchased
by the Company was an estimated $8 million, led by copper and
brass costs, which rose 55% and 60%, respectively.   The Company
continues to realize offsetting gross margin benefits from the
productivity and procurement cost savings of the Company's
continuous improvement program, named "TCP," new product
introductions and a nominal price increase effected in January
2006.  An additional price increase, which the Company estimates
will net approximately 4%-6%, became effective Aug. 1, 2006.

As of June 30, 2006, the Company had combined cash and
availability under its revolver of $35 million.  In July 2006, the
Company increased its borrowings under its Second-Lien Facility by
$20 million and the $6.9 million balance of the Term Loan under
the Credit Agreement was repaid.

                         Outlook for 2006

Mr. Melnuk comments, "Despite the significant distraction and
expense of our delayed financial statement filings, the Company
has made good progress in the first half of 2006.  The strong
demand for our products has resulted in more than a 9% sales
increase in the first half, with limited benefit from price
increases.  We continue to see good sales growth potential along
with solid response to our new product introductions.  In
addition, we expect our August 1 price increase, along with our
ongoing TCP cost containment initiatives, will allow us to
strengthen margins despite continued material cost pressures."

Mr. Melnuk stated, "We continue to make on-time delivery
performance our top priority and constantly look for ways to
enhance customer service.  Later this year, we anticipate
completing the integration of multiple legacy customer billing
platforms into one system, enabling our customer service personnel
to have better information to be more responsive and to improve
our effectiveness in inventory planning."

     Improving Financial Controls and Financial Management

Steven Schumm, CPA, joined the Company in early August as
Executive Vice President, Chief Financial Officer and Chief
Administrative Officer with overall responsibility for accounting
and finance, as well as administrative operations.  Mr. Schumm
worked for Thermadyne on a contract basis for the last four
months.  Mr. Moore has over 20 years of financial and operational
accounting and managerial experience primarily in manufacturing.

                            Restatements

In early August, Thermadyne Holdings filed with the Securities and
Exchange Commission its unaudited results for the first three
months of 2006 on Form 10-Q and audited results for 2005 with
restated prior periods on Form 10-K.

The Company also announced the completion of the amendment to the
Supplemental Indenture relating to the Company's outstanding 9
1/4% Senior Subordinated Notes due 2014.

The Company's financial filings were delayed to allow for
adjustments to the accounting for income taxes, foreign currency
translation and the accounting of certain foreign business units.
The financial statement presentations were also reclassified to
separate the assets, liabilities and results of discontinued
operations.

                          About Thermadyne

Based in St. Louis, Missouri, Thermadyne Holdings Corporation
(Pink Sheets: THMD) -- http://www.Thermadyne.com/-- markets
cutting and welding products and accessories under a variety of
brand names including Victor(R), Tweco(R), Arcair(R), Thermal
Dynamics(R), Thermal Arc(R), Stoody(R), and Cigweld(R).
Its common shares trade under the symbol THMD.PK.

                          *     *     *

Moody's Investors Service downgraded Thermadyne Holdings Corp.'s
corporate family rating from B2 to Caa1 as well as the Company's
rating on its $175 million 9.25% senior subordinated notes due
2014 to Caa2 from Caa1.  The outlook was changed to negative.
Moody's did not rate Thermadyne's senior secured debt.

Standard & Poor's Ratings Services also lowered its ratings on
Thermadyne Holdings Corp., including its corporate credit rating
to 'CCC' from 'B-'.  The outlook on the St. Louis, Missouri-based
welding products manufacturer remains negative.


TITAN FINANCIAL: Hires Administrative Services as Claims Agent
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
gave Titan Financial Group II, LLC and its debtor-affiliates
permission to employ Administar Services Group, Inc., as their
claims, noticing and balloting agent, nunc pro tunc to
Sep. 3, 2006.

Administar Services is expected to:

     a) create and maintain a computer database of all creditors,
        claimants and parties-in-interest;

     b) prepare and serve required notices in these chapter 11
        cases, which may include:

        i) notice of the commencement and the initial meeting of
           creditors;

       ii) notice of the claims bar date, if any;

      iii) notice of objections to claims;

       iv) notice of any hearings on a disclosure statement and
           confirmation of a plan of reorganization; and

       v) other miscellaneous notice to any entities, as may be
          deemed necessary for the orderly administration of the
          case;

     c) prepare for filing with the Clerk's Office a certificate
        or affidavit of service that references the document
        served and includes an alphabetical listing of the
        parties to whom the notice was mailed and the date and
        manner of mailing;

     d) receive and record proofs of claim and proofs of
        interest;

     e) create and maintain official claims registers, including,
        among other things, the following information for each
        proof of claim or proof of interest:

        i) the name of the Debtor;

       ii) the name and address of the claimant, and any agent
           thereof;

      iii) the date received;

       iv) the claim number assigned; and

        v) the asserted amount and classification of claim

    f) implement necessary security measures to ensure the
       completeness and integrity of the claims registers;

    g) transmit to the Clerk's Office a copy of the claims
       registers upon request and at agreed upon intervals;

    h) act as balloting agent which will include these
       services:

       i) print ballots;

      ii) coordinate mailing of ballots, disclosure statement,
          and plan of reorganization and other appropriate
          materials to all voting and non-voting parties, and
          provide affidavit of service;

     iii) prepare voting reports by plan class, creditor, or
          shareholder, and amount for review and approval by the
          Debtor and its counsel;

      iv) establish a toll-free number to receive questions
          regarding the voting on the plan; and

       v) receive and tabulate ballots, inspect ballots for
          conformity to voting procedures, date stamp and number
          ballots consecutively, provide computerized balloting
          database services and certify the tabulation results;

     i) maintain an up-to-date creditor matrix, which list shall
        be available upon request of a party-in-interest or the
        Clerk's Office;

     j) record all transfers of claims pursuant to Rule 3001(e)
        of the Federal Rules of Bankruptcy Procedure and provide
        notice of such transfers as required thereunder;

     k) comply with applicable federal, state, municipal, and
        local statutes, ordinances, rules, regulations, orders,
        and other requirements;

     l) provide temporary employees to process claims, as
        necessary;

     m) promptly comply with such further conditions and
        requirements as the Clerk's Office or the Court may at
        any time prescribe;

     n) perform such other administrative and support related
        noticing, claims, docketing, solicitation and
        distribution services as the Debtor or the Clerk's
        Office may request;

     o) provide reconciliation and resolution of claims services
        to the Debtors;

     p) aid in the preparation of the Schedules of Assets and
        Liabilities and the Statement of Financial Affairs; and

     q) aid in the preparation, mailing, and tabulation of
        ballots for the purpose of accepting or rejecting any
        plans of reorganization proposed by the Debtors.

David K. Leininger, president of the firm, states the firm's
hourly billing rates are:

     Designation                                Hourly Rates
     -----------                                ------------
     Presidents, Principals & Vice President        $245
     Senior Consultants & Senior Programmer         $175
     Consultants & Programmers                      $135
     Call Center Managers                            $91
     Administrative & Clerical Personnel             $56
     Center Attendants                               $45

Mr. Leininger assures the Court the firm does not hold any
interest adverse to the Debtors' estates and is a "disinterested
person" as that term defined in Section 101(14) of the Bankruptcy
Code.

Headquartered in Atlanta, Georgia, Titan Financial Group II,
LLC, provides standard installment loans and serves approximately
80,000 customers through its 125 retail branches across Georgia,
South Carolina and Texas.  The Company and 11 of its affiliates
filed for chapter 11 protection on Sept. 3, 2006 (Bankr. N.D. Ga.
Case No. 06-70852).  When the Debtors filed for protection from
their creditors, they estimated assets and debts between
$10 million to $50 million.


TITAN FINANCIAL: Has Until Oct. 3 to File Schedules & Statement
---------------------------------------------------------------
The U.S. Bankruptcy Court for the Northern District of Georgia
gave Titan Financial Group II, LLC and its debtor-affiliates,
until Oct. 3, 2006, to file its schedules of assets and
liabilities and statements of financial affairs.

The Debtors say that to prepare the schedules and statements, they
must gather information from, books, records, and documents
at various locations and related transactions.  Consequently, the
Debtors contend, collection of the necessary information requires
the expenditure of substantial time and effort on their part.

Headquartered in Atlanta, Georgia, Titan Financial Group II,
LLC, provides standard installment loans and serves approximately
80,000 customers through its 125 retail branches across Georgia,
South Carolina and Texas.  The Company and 11 of its affiliates
filed for chapter 11 protection on Sept. 3, 2006 (Bankr. N.D. Ga.
Case No. 06-70852).  When the Debtors filed for protection from
their creditors, they estimated assets and debts between
$10 million to $50 million.


TOWER AUTOMOTIVE: Wants Granite Transition Agreement Approved
-------------------------------------------------------------
Tower Automotive Inc., and it debtor-affiliates ask the U.S
Bankruptcy Court for the Southern District of New York to approve
their transition agreement with the International Union, United
Automobile, Aerospace and Agricultural Implement Workers of
America, U.A.W., for Local 3206 regarding the closure of the
Granite City Facility.

The Debtors and the Union are parties to a collective bargaining
agreement, covering employees working at the facility in Granite
City, Illinois.  The Granite City Facility, which produces metal
stampings and assemblies for the North American automotive
industry, historically employed approximately 250 Bargaining Unit
Employees.

The Debtors and the Union negotiated in good faith and at arm's
length to reach a transition agreement that addresses issues
related to the closure of the Granite City Facility.  The
Bargaining Unit Employees have voted overwhelmingly to ratify
the Transition Agreement.

A full-text copy of the Transition Agreement is available for
free at http://researcharchives.com/t/s?1188

According to Richard M. Cieri, Esq., at Kirkland & Ellis LLP, in
New York, the Transition Agreement resolves a number of difficult
plant-closing issues, including severance pay and benefits,
vacation pay, re-employment rights, and health and dental
continuation coverage.  The Transition Agreement also resolves a
myriad of ancillary issues, including pending grievance
proceedings, statutory claims, common law claims, unfair labor
practice claims, and claims filed in the Debtors' cases prior to
the effective date of the Transition Agreement.

The salient terms of the Transition Agreement include:

    (a) The Debtors will pay eligible employees a severance
        payment equal to 20 hours of pay for each year of
        service, capped at 26 years.  A Bargaining Unit Employee
        with less than one year of seniority will be entitled to
        one week of pay.

    (b) All employees are encouraged to take any vacation that
        they have earned prior to termination.  The Debtors will
        pay all accrued vacation as per contractual obligation.

    (c) The Debtors will facilitate employee participation in a
        resume workshop.

    (d) Healthcare and dental contribution will be provided for
        the same period as outlined for layoff in the present CBA
        through COBRA.

    (e) If Tower re-opens the Granite City Facility within three
        years of the effective date of the Transition Agreement,
        it will offer employment exclusively by seniority to
        their former employees who timely apply.

                   About Tower Automotive

Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer, including
BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan,
Toyota, Volkswagen and Volvo.  Products include body structures
and assemblies, lower vehicle frames and structures, chassis
modules and systems, and suspension components.  The Company and
25 of its debtor-affiliates filed voluntary chapter 11 petitions
on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through
05-10601).  James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq.,
Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet,
Esq., at Kirkland & Ellis, LLP, represent the Debtors in their
restructuring efforts.  Ira S. Dizengoff, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed $787,948,000 in total assets and
$1,306,949,000 in total debts.  (Tower Automotive Bankruptcy News,
Issue No. 44; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


TOWER AUTOMTIVE: Committee to Appeal Judge Gropper's Decree
-----------------------------------------------------------
The Official Committee of Unsecured Creditors of Tower
Automotive, Inc., and its debtor-affiliates notifies the
U.S. Bankruptcy Court for the Southern District of New York
that it will take an appeal from Judge Gropper's order:

    -- approving the settlement agreement with the United
       Automobile, Aerospace and Agricultural Implement Workers
       of America and the Industrial Division of Communications
       Workers of America AFL-CIO, CLC; and

    -- finding that the VEBA Trusts established pursuant to the
       settlement agreements with the UAW, IUE-CWA, and Milwaukee
       Unions do not violate Section 1986 of the U.S. Labor Code,

                   About Tower Automotive

Headquartered in Grand Rapids, Michigan, Tower Automotive, Inc.
-- http://www.towerautomotive.com/-- is a global designer and
producer of vehicle structural components and assemblies used by
every major automotive original equipment manufacturer, including
BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan,
Toyota, Volkswagen and Volvo.  Products include body structures
and assemblies, lower vehicle frames and structures, chassis
modules and systems, and suspension components.  The Company and
25 of its debtor-affiliates filed voluntary chapter 11 petitions
on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through
05-10601).  James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq.,
Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet,
Esq., at Kirkland & Ellis, LLP, represent the Debtors in their
restructuring efforts.  Ira S. Dizengoff, Esq., at Akin Gump
Strauss Hauer & Feld LLP, represents the Official Committee of
Unsecured Creditors.  When the Debtors filed for protection from
their creditors, they listed $787,948,000 in total assets and
$1,306,949,000 in total debts.  (Tower Automotive Bankruptcy News,
Issue No. 44; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


TOWER RECORDS: Selects Great American as Lead Bidder in Auction
---------------------------------------------------------------
MTS Incorporated, dba Tower Records, and its subsidiaries selected
the Great American Group as lead bidder for the sale of inventory
at all of the Company's stores.  The Great American offer
represents the start of the process to sell the Company's assets
at the upcoming auction.

Under the sale process approved by the U.S. Bankruptcy Court for
the District of Delaware on Sept. 6, 2006, the Company may select
other qualified bidders who have an interest in purchasing the
ongoing business of the Company or its individual assets.  The
auction will be held at the offices of Richards, Layton, & Finger,
P.A. at One Rodney Square, 920 N. King Street, Wilmington,
Delaware 19801, at 10 a.m. on Oct. 5, 2006.

Other potential bidders who would like to participate in the
auction should contact Houlihan Lokey Howard & Zukin and must,
among other things, submit their interest to Tower Records
pursuant to the court's Bid Procedures Order by Sept. 26, 2006.

"We are happy to have the Great American Group offer, and look
forward to a vigorous auction with more bidders for Tower's
business," said Joseph L D'Amico, CEO of Tower Records.

A full-text copy of the Asset Sale Court Order is available for
free at http://ResearchArchives.com/t/s?1192

                      About Great American

Great American Group is the premier asset management company,
providing financial services to North America's most successful
retailers, distributors, manufacturers, and healthcare
administrators.

                       About Tower Records

Headquartered in West Sacramento, California, MTS, Inc., dba Tower
Records -- http://www.towerrecords.com/-- is a retailer of music
in the U.S., with nearly 100 company-owned music, book, and video
stores.  The Company and seven of its affiliates filed for chapter
11 protection on Aug. 20, 2006 (Bankr. D. Del. Case Nos. 06-10886
through 06-10893).  Richards, Layton & Finger, P.A. and O'Melveny
& Myers LLP represent the Debtors.  When the Debtors filed for
protection from their creditors, they estimated assets and debts
of more than $100 million.  The Debtors' exclusive period to file
a chapter 11 plan expires on Dec. 18, 2006.

The Company and its affiliates previously filed for chapter 11
protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No.
04-10394).  The Court confirmed the plan on March 15, 2004.


TRUMP ENT: Teena Brockert Wants Stay Lifted to Pursue PI Action
---------------------------------------------------------------
Teena Marie Brockert, a performer, asks the U.S. Bankruptcy Court
for the District of New Jersey to:

   (1) modify or lift the automatic stay, to the extent there is
       applicable insurance coverage for her personal injury
       claim, to allow her claim against Trump Hotel and Casino
       Resorts, Inc. to proceed in the Indiana State Court; or

   (2) deem the lifting or modification of the stay retroactive
       to the date she filed her personal injury action, nunc pro
       tunc, to allow her to re-file her case if necessary.

Ms. Brockert was a guest at the Trump Hotel and Casino in Gary,
Indiana.  On July 3, 2004, Ms. Brockert was injured when a picture
hanging over her bed inside their hotel room fell on her and her
daughter.  As a result of the injuries she sustained, Ms. Brockert
had to cancel certain business contracts, relates Daniel C.
Fleming, Esq., at Wong Fleming, P.C., in Princeton, New Jersey.

In July 2006, Ms. Brockert sued Trump Hotel and Casino, now known
as Majestic Star Casino II, Inc., and Trump Hotel and Casino
Resorts, Inc., owner and operator of the Casino, before the Lake
County Superior Court, Civil Division, State of Indiana, in
connection with the incident.

In August 2006, Majestic Star and THCR sought the dismissal of
Ms. Brockert's personal injury action.  Responses to the
defendants' motions are due on September 15, 2006.

Ms. Brockert is not a listed creditor of the Debtors and she
never received a notice of the January 18, 2005 general claims
bar date in the Debtors' Chapter 11 cases, Mr. Fleming relates.

According to Mr. Fleming, although THCR made no mention of the
existence of insurance coverage in the Indiana case, an insurance
adjuster has informed Ms. Brockert and her attorneys that THCR
had insurance coverage for her loss.

Mr. Fleming notes that bankruptcy courts, in evaluating cause to
lift the automatic stay, have routinely granted permitted
personal injury plaintiffs to prosecute their claims in state
court and to limit their collection efforts to available
insurance benefits.

Mr. Fleming cites, among others, the ruling in In re Glunk,
342 B.R. 717, 740 (Bankr. D. Pa. 2006).  In re Glunk held that
"the rationale for granting relief from the automatic stay for
this purpose is that the prejudice to the debtor, who may suffer
modest or even no adverse financial consequences but may only
have to expend some time and effort in cooperating with his
insurer in the defense of the litigation, is outweighed by the
prejudice to the creditor whose ability to prosecute the action
and reach the insurance benefits may be undermined by the aging
of evidence, loss of witnesses, and crowded court dockets."

Mr. Fleming also notes that, under Section 362(d)(2) of the
Bankruptcy Code, proceeds from an insurance policy the debtor
maintains are not the property of the debtor's estate.

Hence, because TCHR has insurance coverage in place to cover
potential damages, and the Debtor's property will be unaffected,
cause exists to grant Ms. Brockert's request Mr. Fleming asserts.

Moreover, Mr. Fleming notes, Ms. Brockert has certified that she
never knew of the existence of the January 18, 2005 Claims Bar
Date because she does not regularly read the newspapers in which
THCR allegedly published notice of the Bar Date and did not read
the other newspapers in which the Bankruptcy Court ordered the
Debtors to publish the Bar Date Notice.  Ms. Brockert was also
unaware of the Bar Date until THCR's Indiana lawyers mentioned it
in July 2006 in THCR's Motion to Dismiss.

When a claimant had no notice of a bar date for claims, a late
claim is not barred, Mr. Fleming contends, citing In re Tannen
Towers Acquisition Corp., 235 B.R. 748, 753 (D.N.J. 1999).

Even if a proof of claim were required -- which Ms. Brockert
submits is unnecessary for a personal injury claim in which there
is insurance coverage -- Ms. Brockert would not be barred from
filing the a claim today, Mr. Fleming avers.

Headquartered in Atlantic City, New Jersey, Trump Hotels & Casino
Resorts, Inc., nka Trump Entertainment Resorts, Inc. --
http://www.thcrrecap.com/-- through its subsidiaries, owns and
operates four properties and manages one property under the Trump
brand name.  The Company and its debtor-affiliates filed for
chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case No.
04-46898 through 04-46925).  Robert A. Klymman, Esq., Mark A.
Broude, Esq., John W. Weiss, Esq., at Latham & Watkins, LLP, and
Charles Stanziale, Jr., Esq., Jeffrey T. Testa, Esq., William N.
Stahl, Esq., at Schwartz, Tobia, Stanziale, Sedita & Campisano,
P.A., represent the Debtors in their successful chapter 11
restructuring.  When the Debtors filed for protection from their
creditors, they listed more than $500 million in total assets and
more than $1 billion in total debts.  The Court confirmed the
Debtors' Second Amended Plan of Reorganization on Apr. 5, 2005,
and the plan took effect on May 20, 2005.  (Trump Hotels
Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service affirmed Trump Entertainment Resorts
Holdings, LP's B3 corporate family rating, B2 senior secured bank
loan ratings, Caa1 8.75% second lien note rating, and SGL-3
speculative grade liquidity rating.  The ratings outlook is
stable.


TRUMP ENT: Extends LOI with Diamondhead for Mississippi Casino
--------------------------------------------------------------
Diamondhead Casino Corporation and Trump Entertainment Resorts
have extended to Oct. 23, 2006, the terms of a letter of intent
signed on June 8, 2006, pursuant to which the parties intend to
form a joint venture partnership to develop, build, and operate a
destination casino resort in Diamondhead, Mississippi.

The parties are pleased with the progress, accomplishments, and
results obtained thus far and are currently in the process of
preparing a master plan and preliminary project design concepts.
While the parties have completed substantial due diligence,
including a new mean high water line survey and other engineering
surveys and studies, additional time is required to complete the
required legal and remaining due diligence.

The joint venture would cover a minimum of 40 acres within a
404-acre tract of land owned by Mississippi Gaming Corporation, a
wholly owned subsidiary of Diamondhead.  The Diamondhead tract
fronts Interstate 10 for approximately two miles and the Bay of
St. Louis for approximately two miles and is located in Hancock
County, Mississippi.  The property is zoned as a Special Use
District-Waterfront Gaming District by Hancock County.  On
Oct. 17, 2005, following Hurricane Katrina, Mississippi Governor
Haley Barbour signed a bill into law that permits casinos to be
built on land up to 800-feet from the mean high water line of
certain bodies of water.  The new law applies to the Diamondhead
property.

The formation of a joint venture and development of this project
are subject to certain conditions including, but not limited to,
further due diligence and receipt of regulatory and other
approvals and permits.

                    About Diamondhead Casino

Diamondhead Casino Corporation (OTCBB: DHCC) through its wholly
owned subsidiary, Mississippi Gaming Corporation, owns and intends
to develop, in cooperation with a joint venture partner,
approximately 404 acres of land in Diamondhead, Mississippi.
DHCC intends to develop the property as a destination casino
resort and hotel with condominiums and other amenities.

                 About Trump Entertainment Resorts

Headquartered in Atlantic City, New Jersey, Trump Hotels & Casino
Resorts, Inc., nka Trump Entertainment Resorts, Inc. (Nasdaq:
TRMP) -- http://www.thcrrecap.com/-- through its subsidiaries,
owns and operates four properties and manages one property under
the Trump brand name.  The Company and its debtor-affiliates filed
for chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J. Case
No. 04-46898 through 04-46925).  Robert A. Klymman, Esq., Mark A.
Broude, Esq., John W. Weiss, Esq., at Latham & Watkins, LLP, and
Charles Stanziale, Jr., Esq., Jeffrey T. Testa, Esq., William N.
Stahl, Esq., at Schwartz, Tobia, Stanziale, Sedita & Campisano,
P.A., represent the Debtors in their successful chapter 11
restructuring.  When the Debtors filed for protection from their
creditors, they listed more than $500 million in total assets and
more than $1 billion in total debts.  The Court confirmed the
Debtors' Second Amended Plan of Reorganization on Apr. 5, 2005,
and the plan took effect on May 20, 2005.  (Trump Hotels
Bankruptcy News, Issue No. 43; Bankruptcy Creditors' Service,
Inc., http://bankrupt.com/newsstand/or 215/945-7000).

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service affirmed Trump Entertainment Resorts
Holdings, LP's B3 corporate family rating, B2 senior secured bank
loan ratings, Caa1 8.75% second lien note rating, and SGL-3
speculative grade liquidity rating.  The ratings outlook is
stable.


TRUMP ENT: Names Gregg Caren as Vice President of Hotel Sales
-------------------------------------------------------------
Trump Entertainment Resorts, Inc., has named Gregg Caren, a
20-year veteran of the hotel and hospitality industry, as the
Company's Vice President of Hotel Sales.

In the newly-created position, Mr. Caren will be responsible for
coordinating the sales for more than 3,000 hotel rooms across the
Company's properties in Atlantic City, New Jersey.

"As a company, we continue to focus our business model on using
our hotel sales both to help drive gaming revenue and as a
distinct revenue source," Mark Juliano, the Company's chief
operating officer, said.  "Gregg's experience in hotel sales and
marketing in this region and around the world will be critical to
our operations and reaching our strategic goals."

Mr. Caren joins the Company from SMG, a prominent worldwide
conference and entertainment venue management company, where he
most recently served as Vice President of Operations and Business
Development, with responsibility for national and international
business development.  In this role, Mr. Caren has also provided
operational and sales support for 56 convention centers in the SMG
network across North America.

Previously, Mr. Caren has served as Assistant General Manager and
Director of Sales for the Atlantic City Convention Center.
Additionally, he has worked in management sales positions for
Hilton, Sheraton, and Marriott.  Mr. Caren, 42, is a graduate of
The Pennsylvania State University's Hotel Management program.  The
new position is pending regulatory approval.

"I am excited about many aspects of this new role, specifically
the prospects for utilizing hotel sales to capitalize on the
opportunity of this growing company and the expanding Atlantic
City marketplace," Mr. Caren said.  "The experience and plans of
the Company's management team make this, I believe, a remarkable
opportunity."

Headquartered in Atlantic City, New Jersey, Trump Hotels & Casino
Resorts, Inc., nka Trump Entertainment Resorts, Inc. (Nasdaq:
TRMP) -- http://www.thcrrecap.com/-- through its subsidiaries,
owns and operates four properties and manages one property under
the Trump brand name.  The Company and its debtor-affiliates
filed for chapter 11 protection on Nov. 21, 2004 (Bankr. D. N.J.
Case No. 04-46898 through 04-46925).  Robert A. Klymman, Esq.,
Mark A. Broude, Esq., John W. Weiss, Esq., at Latham & Watkins,
LLP, and Charles Stanziale, Jr., Esq., Jeffrey T. Testa, Esq.,
William N. Stahl, Esq., at Schwartz, Tobia, Stanziale, Sedita &
Campisano, P.A., represent the Debtors in their successful
chapter 11 restructuring.  When the Debtors filed for protection
from their creditors, they listed more than $500 million in
total assets and more than $1 billion in total debts.  The Court
confirmed the Debtors' Second Amended Plan of Reorganization on
Apr. 5, 2005, and the plan took effect on May 20, 2005.
(Trump Hotels Bankruptcy News, Issue No. 43; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/
or 215/945-7000).

                          *     *     *

As reported in the Troubled Company Reporter on Sept. 7, 2006,
Moody's Investors Service affirmed Trump Entertainment Resorts
Holdings, LP's B3 corporate family rating, B2 senior secured bank
loan ratings, Caa1 8.75% second lien note rating, and SGL-3
speculative grade liquidity rating.  The ratings outlook is
stable.


UNITED HOSPITAL: Exclusive Plan Filing Period Extended to Dec. 29
-----------------------------------------------------------------
The U.S. Bankruptcy for the Southern District of New York extended
New York United Hospital Medical Center and U.H. Housing Corp.'s
exclusive periods to:

   a) file a chapter 11 plan until Dec. 29, 2006; and

   b) solicit acceptances of that plan until Feb. 7, 2007.

The Court ruled that the extensions are without prejudice to the
Debtors' right to seek further extensions.

In their request, published in the Troubled Company Reporter on
Aug. 17, 2006, the Debtors told the Court that they continue to
resolve several large claims against the estates to facilitate
creditor distributions under the plan.

In addition, the Debtors said they were analyzing the appropriate
structure for the wind-down and liquidation of their businesses in
order to maximize tax efficiencies for the Debtors and their
creditors.

Headquartered in Port Chester, New York, New York United Hospital
Medical Center is a community healthcare provider and a member of
the New York-Presbyterian Healthcare System, serving several
Westchester communities, including Port Chester, Rye, Mamaroneck,
Rye Brook, Purchase, Harrison and Larchmont.  The Company filed
for chapter 11 protection on Dec. 17, 2004 (Bankr. S.D.N.Y. Case
No. 04-23889).  Burton S. Weston, Esq., at Garfunkel, Wild &
Travis P.C. and Lawrence M. Handelsman, Esq., at Stroock & Stroock
& Lavan LLP represent the Debtor in its restructuring efforts.
Craig Freeman, Esq. and Martin G. Bunin, Esq., at Alston & Bird
LLP represent the Official Committee of Unsecured Creditors.  When
the Debtor filed for protection from its creditors, it listed
total assets of $39,000,000 and total debts of $78,000,000.


UNITY VIRGINIA: Wants Until January 5 to File Chapter 11 Plan
-------------------------------------------------------------
Unity Virginia Holdings LLC and its debtor-affiliates ask the
Honorable Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas in Dallas to extend their exclusive
plan-filing period to Jan. 5, 2007.

The Debtors have been actively meeting with potential buyers to
pursue the sale of their assets.  The Debtors say that in the
event their efforts are unsuccessful, they will use the extension
to formulate appropriate plans of reorganization and file
meaningful disclosure statements.

Headquartered in Dallas, Texas, Unity Virginia Holdings LLC,
operates a coal mining and processing company.  The company filed
for chapter 11 protection on May 10, 2006 (Bankr. N.D. Tex.  Case
No. 06-31937).  James C. Jarret, Esq., and Arnaldo N. Cavazos,
Jr., Esq., at Cavazos, Hendricks & Poirot, P.C., represent the
Debtor in its restructuring efforts.  No Official Committee of
Unsecured Creditors has been appointed in the Debtors' cases.
When the Debtors filed for protection from their creditors, they
estimated assets and debts between $10 million and $50 million.

Four of the Debtor's affiliates, Glamorgan Coal Resources LLC,
Glamorgan Processing LLC, Glamorgan Properties LLC, and Glamorgan
Refuse LLC, filed for chapter 11 protection on May 12, 2006
(Bankr. N.D. Tex. Case Nos. 06-31953 through 06-31956).  Another
affiliate, Glamorgan Operations, LLC, filed for chapter 11
protection on May 17, 2006 (Bankr. N.D. Tex. Case No. 06-31995).


UNITY VIRGINIA: Wants Terra Tech to Provide Cost Analysis
---------------------------------------------------------
Unity Virginia Holdings LLC and its debtor-affiliates ask the
Honorable Harlin DeWayne Hale of the U.S. Bankruptcy Court for the
Northern District of Texas in Dallas for authority to employ Terra
Tech Engineering Services, P.C.

Terra Tech will provide a cost analysis for reclamation in
accordance with the Division of Mined Land Reclamation mine
regulations.  The Debtors require Terra Tech's services because
that is a land mining regulation and requirement of the state of
Virginia, and it will prevent the revocation or suspension of the
Debtors' mining permits.

Chris Alan Perry, Terra Tech's vice president, discloses that the
Firm will receive $10,000 per week totaling $40,000 for payment of
four permits:

   1. Permit No. 1101950 South Prep Plant Strip,
   2. Permit No. 1101951 Endurance Mine,
   3. Permit No. 1701937 South Prep Plant, and
   4. Permit No. 1701941 Refuse Fill Facility.

               About Terra Tech Engineering Services

Terra Tech Engineering Services, P.C. -- http://terratecheng.com/
-- was founded in 1997.  The Firm provides mining and civil
engineering consultancy services to the surrounding Appalachian
region.

Mr. Perry can be contacted at:

      Chris Alan Perry
      Vice-President
      Terra Tech Engineering Services, P.C.
      P.O. Box 1063
      Grundy, VA 24614
      Tel: (276) 935-4191
      Mobile: (276) 971-2220

                   About Unity Virginia Holdings

Headquartered in Dallas, Texas, Unity Virginia Holdings LLC,
operates a coal mining and processing company.  The company filed
for chapter 11 protection on May 10, 2006 (Bankr. N.D. Tex.  Case
No. 06-31937).  James C. Jarret, Esq., and Arnaldo N. Cavazos,
Jr., Esq., at Cavazos, Hendricks & Poirot, P.C., represent the
Debtor in its restructuring efforts.  No Official Committee of
Unsecured Creditors has been appointed in the Debtors' cases.
When the Debtors filed for protection from their creditors, they
estimated assets and debts between $10 million and $50 million.

Four of the Debtor's affiliates, Glamorgan Coal Resources LLC,
Glamorgan Processing LLC, Glamorgan Properties LLC, and Glamorgan
Refuse LLC, filed for chapter 11 protection on May 12, 2006
(Bankr. N.D. Tex. Case Nos. 06-31953 through 06-31956).  Another
affiliate, Glamorgan Operations, LLC, filed for chapter 11
protection on May 17, 2006 (Bankr. N.D. Tex. Case No. 06-31995).


VALEANT PHARMA: Revenues Increase 12% to $230.2 Mil. in 2nd Qtr.
----------------------------------------------------------------
Valeant Pharmaceuticals International reported a $44.9 million net
loss from continuing operations for the second quarter of 2006,
including the impact of stock-based compensation expense of
$5 million, compared to net income of $1.4 million.

Revenues increased 12% to $230.2 million in the second quarter
ended June 30, 2006, compared to $205 million for the same period
in 2005.

Product sales increases in the 2006 second quarter compared to the
same period last year were led by the addition of Infergen(R) to
the product portfolio this year and strong growth in sales of
Efudex(R), Kinerase(R), Mestinon(R), Bedoyecta(TM) and
Cesamet(TM), partially offset by a decline in sales of Diastat(R)
and Migranal(R).

Infergen was acquired at the end of last year and had sales of
$11.3 million in the 2006 second quarter.  Excluding Infergen,
product sales increased nine% in the 2006 second quarter, compared
to the same period last year.

Sales of promoted products increased 23% in the 2006 second
quarter, compared to the same period last year.  Excluding sales
of Infergen, promoted products increased 11% in the quarter.

Timothy C. Tyson, president and chief executive officer, said,
"We're very pleased with the results for the second quarter of
2006, which reflect an improvement in product sales and a
continued control of expenses.  Sales were higher due to acquired
products and an overall growth in promoted brands.  All of our
regions did an excellent job in holding the line on expenses in
the quarter. Our restructuring initiative has begun to take hold
and will further improve costs, driving significant benefits to
the bottom line. The expected growth in product sales and the
benefits from our restructuring plan continue to give us
confidence in our ability to achieve our metric targets for the
year and our previously communicated earnings targets."

                         Financial Metrics

The company's gross margin on product sales in the 2006 second
quarter was 68%.  Adjusted for non-GAAP items, the gross margin
was 69%, compared to 71% in the same period last year.  The
decline was primarily due to an increase in cost of goods sold
that resulted from manufacturing variances in the quarter,
principally for the write-off of inventory.  The company continues
to expect to achieve its gross margin target of 69-71% in 2006.

Selling expense was 32% of product sales in the 2006 second
quarter.  Adjusted for non-GAAP items, selling expense was 31%,
compared to 34% in the same period last year.  The decline was due
to reduced sales and marketing costs, partially offset by expenses
associated with pre-launch activities in the quarter for Zelapar
and Cesamet.

General and administrative expenses were 15% of product sales in
the 2006 second quarter.  Adjusted for non-GAAP items, general and
administrative expenses were 14%, the same ratio reported in the
same period last year.  Adjusted general and administrative
expenses in the current period include a $2.4 million charge to
reflect the previously announced judgment against the company in
its lawsuit with Caleel + Hayden.

Research and development expenses were 13% of sales in the 2006
second quarter, compared to 15% in the same period last year.

                     Restructuring Update

The company continued to make progress in the implementation of
its restructuring initiative announced earlier this year.  The
company expects to record restructuring charges in connection with
this initiative of between $90-115 million, of which $53.1 million
and $79.5 million were recorded in the three and six months ended
June 30, 2006, respectively.  The company continues to expect that
between $20-30 million of the restructuring costs in 2006 will be
in cash.

The company expects to save approximately $20-30 million in
expenses in 2006 as a result of the restructuring initiative,
nearly all of which will be in the second half of the year.  In
2007 and 2008, cost savings are expected to be approximately
$50-70 million in each year.

                        Litigation

The company also announced that it settled its lawsuit in the
Delaware Court of Chancery against Milan Panic, the company's
former chairman and chief executive officer, for $20 million.  The
settlement requires an initial cash payment to the company of
$8 million in the 2006 third quarter with the remainder due within
one year.  The settlement resolves all outstanding claims between
Mr. Panic and the company.  The settlement will result in a gain
of approximately $18 million, which will be recorded in the 2006
third quarter.

                           About Valeant

Valeant Pharmaceuticals International -- http://www.valeant.com/
-- is a global, science-based specialty pharmaceutical company
that develops, manufactures and markets pharmaceutical products
primarily in the areas of neurology, infectious disease and
dermatology.

                         *     *     *

As reported in the Troubled Company Reporter on May 26, 2006,
Standard & Poor's Ratings Services revised its outlook on Costa
Mesa, California-based specialty pharmaceutical company Valeant
Pharmaceuticals International to negative from stable.

Ratings on the company, including the 'BB-' corporate credit
rating, were affirmed.  The outlook revision reflected Valeant's
recent setback in the development of its lead product prospect,
viramidine, as well as other business challenges.


VILLAGES AT SARATOGA: Chapter 7 Trustee Hires PwC as Accountants
----------------------------------------------------------------
David L. Miller, the chapter 7 trustee overseeing the liquidation
of The Villages at Saratoga Springs LC, obtained authority from
the U.S. Bankruptcy Court for the District of Utah for authority
to employ Gil A. Miller and the firm of PricewaterhouseCoopers LLP
as accountants.

As accountants, Mr. Gil Miller and PricewaterhouseCoopers will
provide tax preparation services and assist the Trustee and the
Debtor in accumulating data for the tax preparation.

PricewaterhouseCoopers' professionals and their hourly service
rates are:

           Professional          Hourly Rate
           ------------          -----------
           Director                 $250
           Manager                  $200
           Senior Associate         $185
           Associate                $165
           Paraprofessional         $135

Mr. Gil Miller assures the Court that both he and
PricewaterhouseCoopers do not hold or represent any interest
adverse to the Debtor and are disinterested persons within the
meaning of Sec. 101(14) of the Bankruptcy Code.

Headquartered in Spanish Fork, Utah, The Villages at Saratoga
Springs LC filed for chapter 11 protection on Aug. 29, 2005
(Bankr. D. Utah Case No. 05-33380).  On July 26, 2006, the
Debtor's case was converted into chapter 7 proceeding (Bankr.
D. Utah Case No. 05-33380).  Lon A. Jenkins, Esq., and Mary
Margaret Hunt, Esq., at Ray Quinney & Nebeker represent the
Debtor.  David L. Miller serves as trustee and is represented
by Noel S. Hyde, Esq. in South Ogden, Utah.  When the Debtor filed
for protection from its creditors, it listed $26,002,293 in assets
and $15,188,610 in debts.


WERNER LADDER: Creditor Asserts $553,901 Administrative Claim
-------------------------------------------------------------
Creditor Target Stamped Products asks the U.S. Bankruptcy Court
for the District of Delaware to grant it an allowed administrative
claim of $553,901 against Werner Holding Co. (DE), Inc., aka
Werner Ladder Company, and its debtor-affiliates, and order that
the claim must be immediately paid by the Debtors with
administrative expense priority.

On March 18, 2006, Werner Co. and Target entered into several
purchase orders, for the supply to Werner Co. of component parts
manufactured by Target, specifically various hinges for Werner's M
Ladder.  Werner Co. has elected to terminate the Purchase Orders,
as it is planning to move production of the M Ladder to China.

According to James C. Carignan, Esq., at Pepper Hamilton LLP in
Wilmington, Delaware, Target asserts two administrative claims
against Werner, consisting of:

   (i) a $352,386 claim resulting from its premature termination
       of the purchase orders, and

  (ii) a $201,514 claim resulting from the supply of goods to the
       Debtor during the 20 days prior to the Petition Date.

Mr. Carignan notes that under the Purchase Orders, upon their
termination, Target will be entitled to:

    -- payment for its actual costs for specially manufactured
       goods incurred in the performance of the terminated
       portion, up to and including the date of termination, and
       all costs will be determined in accordance with generally
       accepted accounting principles, consistently applied; and

    -- payment of a reasonable profit on work done prior to
       termination, at a rate not exceeding the rate used in
       establishing original purchase price.

Mr. Carignan adds that Werner's obligations under the Purchase
Orders were also specified in a letter dated July 14, 2005.  In
the letter, the Debtor authorized Target to build and maintain up
to four weeks of finished inventory and four weeks of a
combination of necessary raw materials or WIP Technologies, Inc.,
material in support to fulfill the Purchase Orders.

Mr. Carignan says that Werner's termination of the Purchase
Orders creates an obsolescence claim for Target, pursuant to the
terms of the July 14, 2005 letter.  At the present, Target is in
possession of $209,246 of hinge assemblies and components, which
are substantially all inventories of components that fell under
Werner's authorization for Target to maintain.

Mr. Carignan adds that July 14, 2005 letter authorized Target to
maintain raw goods materials, which resulted in Target facing
obsolescence claims from its own supplier, NSK Industries, Inc.
NSK's claim against Target totals $143,140, Mr. Carignan says.

Mr. Carignan notes that, pursuant to Sections 503(b)(1) and
507(a)(2) of the Bankruptcy Code, the costs and expenses of doing
business with the estate are administrative claims against the
bankruptcy estate, which is applicable in Target's situation.

Among other things, Werner told Target that it was a critical
supplier and committed payment of Target's entire prepetition
claim.  Werner has stressed that it operated on a 'just in time'
inventory system that required steady shipment of parts from
Target in order to prevent the Debtor from shutting down its
assembly lines, Mr. Carignan says.

Additionally, according to Mr. Carignan, goods worth $201,514
were delivered to Werner within 20 days of the Petition Date in
accordance with the Purchase Orders and in the ordinary course of
the parties' businesses.  These goods, according to Mr. Carignan,
qualify as administrative claims under Section 503(b)(9) and
should be paid immediately.

Mr. Carignan notes that the U.S. Congress intended that claims
under Section 503(b)(9) be paid during the course of a bankruptcy
proceeding, and not solely when a plan of reorganization is
confirmed.

                       About Werner Ladder

Headquartered in Greenville, Pennsylvania, Werner Co. --
http://www.wernerladder.com/-- manufactures and distributes
ladders, climbing equipment and ladder accessories.  The company
and three of its affiliates filed for chapter 11 protection on
June 12, 2006 (Bankr. D. Del. Case No. 06-10578).

The firm of Willkie Farr & Gallagher LLP serves as the Debtors'
counsel.  Kara Hammond Coyle, Esq., Matthew Barry Lunn, Esq., and
Robert S. Brady, Esq., Young, Conaway, Stargatt & Taylor, LLP,
represents the Debtors as its co-counsel.  The Debtors have
retained Rothschild Inc. as their financial advisor.  Greenberg
Traurig LLP is counsel to the Official Committee of Unsecured
Creditors.  Jefferies & Co serves as the Committee's financial
advisor.

At March 31, 2006, the Debtors reported total assets of
$201,042,000 and total debts of $473,447,000.  (Werner Ladder
Bankruptcy News, Issue No. 9; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000)


WEST HILLS: Wants Lawrence J. Maun as Bankruptcy Counsel
--------------------------------------------------------
West Hills Park Joint Venture and its debtor-affiliate, JA
Development, L.C., ask the U.S. Bankruptcy Court of the Southern
District of Texas for permission to employ Lawrence J. Maun, P.C.,
as their bankruptcy counsel, nunc pro tunc to Aug. 17, 2006.

Lawrence Maun will:

     a) give the Debtor legal advice with respect to its powers
        and duties as debtor-in-possession in the continued
        operation of its business and management of its property;

     b) prepare on behalf of applicant as debtor-in-possession,
        necessary applications, answers, orders, reports and
        other legal papers;

     c) file all claims which the Debtor has against any and all
        individuals, partnerships or corporation and any other
        entities of any nature;

     d) defend all claims filed by creditors of the Debtor
        against the Debtor and to assure the validity thereof;

     e) attend necessary court hearings, and administrative
        agency hearings;

     f) perform all other legal service for debtor-in-possession
        which may be necessary herein; and

     g) aid the Debtor in the determination of the assumption or
        rejection of executory contracts and the filing of
        appropriate pleadings with the Court.

The Debtors tell the Court that Lawrence J. Maun, Esq., will bill
$325 per hour for this engagement.  The Debtors disclose that the
Firm's customary rates are:

     Designation            Hourly Rate
     -----------            ------------
     Associate              $250 - $125
     Contract Attorneys     $250 - $125
     Paralegals                 $75

Mr. Maun, assures the Court that his Firm does not hold any
interest adverse to the Debtor's estate and is a "disinterested
person" as that term defined in Section 101(14) of the Bankruptcy
Code.

Mr. Maun can be reached at:

     Lawrence J. Maun, Esq.
     Lawrence J. Maun, P.C.
     9800 Richmond Avenue, Suite 520
     Houston, TX 77042
     Tel: (713) 266-2560
     Fax: (713) 266-2568

Headquartered in Montgomery, Texas, West Hills Park Joint Venture
filed its chapter 11 protection on Aug. 17, 2006 (Bankr. S.D. Tx
Case No. 06-33996).  Lawrence J. Maun, Esq. at Lawrence J. Maun,
P.C., represents the Debtors in its restructuring efforts.  No
Official Committee of Unsecured Creditors has been appointed in
the Debtor's bankruptcy proceedings.  When the Debtor filed for
protection from its creditors, it estimated assets and debts
between $10 Million to 50 Million.


WINN-DIXIE: Florida Tax Collectors Want Tax Motion Dismissed
------------------------------------------------------------
The Florida Tax Collectors ask the U.S. Bankruptcy Court for the
Middle District of Florida to abstain from exercising jurisdiction
and to dismiss Winn-Dixie Stores, Inc., and its debtor-affiliates'
motion to reduce and allow certain tax claims with prejudice.

The tax collectors of Duval, Escambia, and Okaloosa Counties also
filed separate responses.  The Tax Collectors ask the Court to
overrule the Debtors' Objection and deny the Debtors' request to
the Court to determine their tax liabilities.

Brian T. FitzGerald, Esq., at the Hillsborough County Attorney's
Office, in Tampa, Florida, says that the Debtors' Objection
requests a combined claim for relief, which renders the Objection
an adversary proceeding pursuant to Rule 3007 of the Federal Rule
of Bankruptcy Procedure.

The Debtors' objection is based upon a state law cause of action
and is related to a bankruptcy case, but it does not arise in a
Chapter 11 case, Mr. FitzGerald states.

Furthermore, Mr. FitzGerald says, the Tax Injunction Act, Section
1341 of the Judiciary and Judicial Procedure, and Section
362(b)(18) of the Bankruptcy Code preclude the Court from
enjoining or otherwise interfering with the assessment of state
ad valorem property taxes.

The Debtors have waived any right to contest the 2004 or 2005
property taxes.  Their delay in asserting a challenge to Florida
property taxes and their attempt to challenge their own sworn tax
returns is cause for denial of the relief they are requesting
based upon the doctrines of laches and unclean hands,
Mr. FitzGerald asserts.

Mr. FitzGerald further asserts that the Eleventh Amendment of the
U.S. Constitution precludes this action against the Florida Tax
Collectors and other constitutional officers and the State of
Florida.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WINN-DIXIE: Fairfield Partners Want WD Montgomery's Motion Denied
-----------------------------------------------------------------
Jake Aronov, Owen Aronov, and Fred Berman ask the U.S. Bankruptcy
Court for the Middle District of Florida to rule in their favor,
deny the relief requested by Winn-Dixie Montgomery, Inc., and
award them attorney's fees and costs incurred in the litigation.

The Defendants deny Winn-Dixie Montgomery, Inc.'s allegations of
breach of contract and unjust enrichment.

Jake Aronov, Owen Aronov, and Fred Berman are the partners of
Fairfield Partners Limited Partnership, which owned the Flint
Ridge Centre in Fairfield, Alabama.

Richard R. Thames, Esq., at Stutsman Thames & Markey, P.A., in
Jacksonville, Florida, presents five affirmative defenses in
support of the Defendants:

   (1) Winn-Dixie is equitably estopped by its conduct and
       silence from collecting any of the $281,897 at issue in
       this Adversary Proceeding;

   (2) Winn-Dixie has waived its right to collect the $281,897 at
       issue in this Adversary Proceeding by failing to make a
       demand for payment within the time required by the Special
       Incentive Agreement or within a reasonable time;

   (3) Winn-Dixie's claim is barred by the doctrine of laches
       because the company failed to notify the Defendants of any
       claimed breach of the Incentive Payment Agreement or of
       the expiration or termination of any sublease of the
       Midfield property within a reasonable time, effectively
       precluding the Defendants from mitigating the claimed
       damages;

   (4) The Defendants were excused from performance and released
       from the obligation to pay any the $281,897 at issue as a
       result of Winn-Dixie's prior breach of the Incentive
       Payment Agreement, including the breach of its implied
       duties of good faith, cooperation and fair dealing, and
       its obligation to mitigate damages through re-letting of
       the Midfield property; and

   (5) Winn-Dixie's claims are barred by the applicable statute
       of limitations.

Pursuant to Rule 7056 of the Federal Rules of Bankruptcy
Procedure, the Defendants ask the Court for a partial summary
judgment in their favor regarding issues of whether:

   -- the Incentive Payment Agreement constitutes a promissory
      note; and

   -- Winn-Dixie may seek recovery under an unjust enrichment
      theory.

Mr. Thames asserts that Incentive Payment Agreement is not a
promissory note because the Defendants' reimbursement obligations
are uncertain in amount and contingent upon the re-letting of
Winn-Dixie's former store location in the Midfield Shopping
Center.

The Incentive Payment Agreement does not comport with the
cardinal principle that the sum to be paid must be certain in
amount and not dependent upon contingencies to meet the
definition of a promissory note under Alabama law, Mr. Thames
explains.

Mr. Thames also contends that Incentive Payment Agreement, an
express contract between the Parties, precludes recovery on an
unjust enrichment theory because it concerns the same subject
matter on which the unjust enrichment claim rests.

                     Status of the Proceeding

Winn-Dixie has not yet filed a response to the Defendants'
request for partial summary judgment.  According to Leanne
McKnight Prendergast, Esq., at Smith Hulsey & Busey, in
Jacksonville, Florida, the parties are engaged in negotiations,
which include a possible voluntary mediation.

Winn-Dixie asks the Court to extend the deadline for filing its
response to the Defendants' partial summary judgment request
until Oct. 27, 2006.

Ms. Prendergast assures the Court that the Defendants' counsel
does not oppose Winn-Dixie's request for more time.

Headquartered in Jacksonville, Florida, Winn-Dixie Stores, Inc.
-- http://www.winn-dixie.com/-- is one of the nation's largest
food retailers.  The Company operates 527 stores in Florida,
Alabama, Louisiana, Georgia, and Mississippi.  The Company,
along with 23 of its U.S. subsidiaries, filed for chapter 11
protection on Feb. 21, 2005 (Bankr. S.D.N.Y. Case No. 05-11063,
transferred Apr. 14, 2005, to Bankr. M.D. Fla. Case Nos.
05-03817 through 05-03840).  D.J. Baker, Esq., at Skadden
Arps Slate Meagher & Flom LLP, and Sarah Robinson Borders,
Esq., and Brian C. Walsh, Esq., at King & Spalding LLP,
represent the Debtors in their restructuring efforts.
Paul P. Huffard at The Blackstone Group, LP, gives
financial advisory services to the Debtors.  Dennis F. Dunne,
Esq., at Milbank, Tweed, Hadley & McCloy, LLP, and John B.
Macdonald, Esq., at Akerman Senterfitt give legal advice to the
Official Committee of Unsecured Creditors.  Houlihan Lokey &
Zukin Capital gives financial advisory services to the
Committee.  When the Debtors filed for protection from their
creditors, they listed $2,235,557,000 in total assets and
$1,870,785,000 in total debts.  (Winn-Dixie Bankruptcy News,
Issue No. 51; Bankruptcy Creditors' Service, Inc.,
http://bankrupt.com/newsstand/or 215/945-7000).


WORLD HEALTH: Committee Moves Court to Create Statutory Trust
-------------------------------------------------------------
The Official Committee of Unsecured Creditors of World Health
Alternatives, Inc., and its debtor-affiliates asks the Honorable
Peter J. Walsh of the U.S. Bankruptcy Court for the District of
Delaware to create a statutory trust.

The Committee wants the Court to transfer to the Trust its rights
to:

   a. receive and distribute the Collateral Carve-Out; and

   b. pursue certain estate causes of action against CapitalSource
      Finance, LLC, in the event the Debtors' cases are converted
      to chapter 7 liquidation proceedings.

The U.S. Trustee has appealed the Court's order approving the
Letter Agreement among the Committee, the Debtors, and
CapitalSource.  Because of the U.S. Trustee's appeal, the Court's
approval has not become a final order; thus, the Letter Agreement
cannot be effected until the appeal is decided or withdrawn.  The
U.S. Trustee and the Internal Revenue Service are also pressing
for conversion of the Debtors' chapter 11 cases.

Upon conversion to chapter 7, the Committee will cease to exist
along with its ability to realize the benefits afforded under the
Letter Agreement.

The Letter Agreement provides that the Committee would be given
the right to pursue certain claims, causes of action, and
recoveries on behalf of the estate against CapitalSource.

The Committee said that unless its right to bring action against
CapitalSource is transferred to a trust, it will be lost.  The
Committee's rights to bring an action against CapitalSource cannot
be revived by a Chapter 7 Trustee because the Debtors are barred
from and have waived the right to assert claims and causes of
actions against CapitalSource.

Headquartered in Pittsburgh, Pennsylvania, World Health
Alternatives, Inc. -- http://www.whstaff.com/-- is a premier
human resource firm offering specialized healthcare personnel for
staffing and consulting needs in the healthcare industry.  The
company and six of its affiliates filed for chapter 11 protection
on Feb. 20, 2006 (Bankr. D. Del. Case Nos. 06-10162 to 06-10168).
Stephen M. Miller, Esq., at Morris, James, Hitchens & Williams
LLP, represents the Debtors in their restructuring efforts.
Lawyers at Young, Conaway, Stargatt & Taylor, LLP, represent the
Official Committee of Unsecured Creditors.  When the Debtors filed
for protection from their creditors, they estimated assets and
debts between $50 million and $100 million.


WORLDWATER & POWER: Equity Deficit Narrows to $1.5 Mil. at June 30
------------------------------------------------------------------
WorldWater & Power Corp. filed its second quarter financial
statements for the three months ended June 30, 2006, with the
Securities and Exchange Commission on Aug. 14, 2006.

For the three months ended June 30, 2006, the Company incurred a
$1.9 million net loss on $1.7 million of net revenues compared to
a $1.4 million net loss on $217,163 of net revenues in 2005.

At June 30, 2006, the Company's balance sheet showed $5,561,675 in
total assets and $6,444,716 in total liabilities, and $1,508,041
in stockholders' deficit.  Its total stockholders' deficit at
March 31, 2006, stood at $1.6 million.

The Company's June 30 balance sheet also showed strained liquidity
with $4.7 million in total current assets available to pay
$5.4 million in total current liabilities coming due within the
next 12 months.

A full-text copy of the Company's Quarterly Report is available
for free at http://researcharchives.com/t/s?1177

                        Going Concern Doubt

Amper, Politziner, Mattia, P.C., in Edison, New Jersey, raised
substantial doubt about Worldwater & Power's Inability to continue
as a going concern after auditing the Company's consolidated
financial statements for the year ended Dec. 31, 2005.  The
auditor pointed to the Company's losses from operations and
working capital deficit.

                      About Worldwater & Power

Headquartered in Pennington, New Jersey, WorldWater & Power Corp.
(WWAT.OB) -- http://www.worldwater.com/-- operates as a solar
engineering and project managment company.  It provides power
through photovoltaic and hydroelectric technology.


YUKOS OIL: Federal Court Nixes Moravel Appeal on $680 Mil. Charge
-----------------------------------------------------------------
The Moscow District Federal Arbitration Court rejected an appeal
filed by Moravel Investment Ltd., a subsidiary of Yukos' core
shareholder, Group Menatep, to charge $680 million from OAO Yukos
Oil Co., RIA Novosti says.

The Federal Arbitration Court upheld a July 17 ruling of the
Moscow Arbitration Court rejecting the company's appeal to enforce
a decision made by a London arbitration tribunal on Sept. 16,
2005, to charge the principal amount of the debt and interest from
Yukos, Russia's news and information agency reports.

On Sept. 30, 2003, Societe Generale Bank extended a $1.6 billion
loan to Yukos under which it may demand early repayment over
threats of default.  The bank then demanded the repayment of the
remaining $655.25 million debt when Yukos ran into financial
difficulties.  When Yukos failed to meet its obligations, the bank
re-assigned its claim to Moravel Investment, which then took the
case to an arbitration tribunal in London, the Russian news agency
relates.

                           About Yukos

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for $9.35 billion, as
payment for $27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than $12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a $1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a $1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court
upheld creditors' vote to liquidate OAO Yukos Oil Co. and
declared what was once Russia's biggest oil firm bankrupt.  The
expected court ruling paves the way for the company's
liquidation and auction.


YUKOS OIL: Federal Court Denies Appeal for Extra Tax Bill
---------------------------------------------------------
The Federal Arbitration Court in Moscow rejected an appeal by
Russia's tax authorities to charge additional RUR165 million
(about $6.1 million) from Samaraneftegaz, a subsidiary of OAO
Yukos Oil Co., RIA Novosti reports.

The federal court ruling upheld a decision by the Moscow
Arbitration Court on Feb. 26 that invalidated an extra tax bill
for January 2005 brought against Samaraneftegaz.

Tax charges against Samaraneftegaz include:

            Year          Amount
            ----          ------
            2001          RUR8.9 billion
            2002          RUR8.7 billion
            2004          RUR7 billion

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for $9.35 billion, as
payment for $27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than $12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a $1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a $1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court
upheld creditors' vote to liquidate OAO Yukos Oil Co. and
declared what was once Russia's biggest oil firm bankrupt.  The
expected court ruling paves the way for the company's
liquidation and auction.


YUKOS OIL: Shareholder to Seek $50 Billion in Damages from Russia
-----------------------------------------------------------------
GML (fka Group Menatep), the majority shareholder of OAO Yukos Oil
Co., intends to seek more than $50 billion in compensation against
Russia, MosNews reports citing The Times as its source.

The Times says the damages, which were previously estimated at
$30 billion, is set to rise to about $50 billion.

"We would have sold out of Yukos at this higher price, so when our
accountants are finished working out the numbers I think the claim
will be closer to $50 billion," Tim Osborne, a director of GML,
said.

According to the report, GML is bringing the Energy Charter Treaty
Claim against the Kremlin, seeking damages and accusing it of
discriminatory treatment against the company.  The case is being
heard by the United Nations Commission on International Trade Law
in the Hague.

Mr. Osborne disclosed that GML decided to abandon settlement
negotiations until Russian President Vladimir Putin is due to step
down.

Yukos, what was once Russia's largest oil producer, is now split
into two parts: the Russian assets under administration, and the
foreign assets held by a Dutch holding company.  The company's
Russian assets are likely to be sold to either Rosneft and Gazprom
while the foreign properties are being sold off to return cash to
GML and pay debts, MosNews relates.

Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an
open joint stock company existing under the laws of the Russian
Federation.  Yukos is involved in energy industry substantially
through its ownership of its various subsidiaries, which own or
are otherwise entitled to enjoy certain rights to oil and gas
production, refining and marketing assets.

The Company filed for Chapter 11 protection Dec. 14, 2004
(Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed
on Feb. 24, 2005, by the Hon. Letitia Z. Clark.  A few days
later, the Government sold its main production unit Yugansk, to
a little-known firm Baikalfinansgroup for $9.35 billion, as
payment for $27.5 billion in tax arrears for 2000- 2003.
Yugansk eventually was bought by state-owned Rosneft, which is
now claiming more than $12 billion from Yukos.

On March 10, a 14-bank consortium led by Societe Generale filed
a bankruptcy suit in the Moscow Arbitration Court in an attempt
to recover the remainder of a $1 billion debt under
outstanding loan agreements.  The banks, however, sold the claim
to Rosneft, prompting the Court to replace them with the state-
owned oil company as plaintiff.

On April 13, court-appointed external manager Eduard Rebgun
filed a chapter 15 petition in the U.S. Bankruptcy Court for the
Southern District of New York (Bankr. S.D.N.Y. Case No. 06-
0775), in an attempt to halt the sale of Yukos' 53.7% ownership
interest in Lithuanian AB Mazeikiu Nafta.

On May 26, Yukos signed a $1.49 billion Share Sale and
Purchase Agreement with PKN Orlen S.A., Poland's largest oil
refiner, for its Mazeikiu ownership stake.  The move was made a
day after the Manhattan Court lifted an order barring Yukos from
selling its controlling stake in the Lithuanian oil refinery.

On Aug. 1, the Hon. Pavel Markov of the Moscow Arbitration Court
upheld creditors' vote to liquidate OAO Yukos Oil Co. and
declared what was once Russia's biggest oil firm bankrupt.  The
expected court ruling paves the way for the company's
liquidation and auction.


* Restructuring Attorney Stephen Gallagher Joins Venable
--------------------------------------------------------
Adding to one of the strongest regional bankruptcy practices in
the greater Washington D.C. market, Venable LLP has added Stephen
K. Gallagher, an experienced bankruptcy and restructuring
attorney, as a partner in the firm's offices in Northern Virginia
and in Washington, D.C.

Mr. Gallagher, 46, has been selected as one of The Best Lawyers in
America for 2007 in Bankruptcy and Creditor-Debtor Rights Law and
joins Venable from the Virginia-based law firm of LeClair Ryan.

Mr. Gallagher operates in all areas of commercial litigation,
corporate bankruptcy and restructuring, including the
restructuring of nonprofits. He also brings significant experience
representing clients in the purchase and sale of assets from
entities in Chapter 11 proceedings-the lesser known, but highly
active acquisition side of the bankruptcy world.

"Steve is a great addition to our practice group.  He has a wealth
of experience in complex bankruptcy matters and litigation, and
his talents will greatly enhance both our regional and national
work," stated Greg Cross, head of Venable's Bankruptcy and
Creditor's Rights Group.  "He has also developed a leading-edge
practice in many aspects of bankruptcy law, including bankruptcy
sales.  Representing buyers and sellers in the disposition of
assets during Chapter 11 proceedings can be among the most
challenging work in bankruptcy."

Among his notable work, Mr. Gallagher has represented debtors in
the bankruptcy cases of Ceyoniq, Inc., National Spa and Pool
Association, CPOR, Inc. and International Society of Fire Service
Instructors; the Creditors' Committee in Securiguard, Inc., and
Network Storage Solutions; as well as creditors or bidders in
corporate Chapter 11 cases such as Global Crossing, Winstar,
Ameriserve, IT Corporation, Aleron, Pathnet, TalkingNets, Levitz
Home Furnishings, Computer Learning Centers and US Airways.

"Venable is a great place for the practice I've developed.  The
firm has a deep and experienced bench in bankruptcy and
restructuring, and a great interdisciplinary team of attorneys in
litigation and corporate finance who can jump in and provide top-
notch support on any matter, including challenging financial
transactions related to Chapter 11," Mr. Gallagher said.
"Venable's range of expertise, from its litigation, corporate,
labor and intellectual property practices to its broad finance
experience, provides an outstanding platform from which to further
grow my practice.  It will also advance my nonprofit and trade
association restructuring work."

The addition of Mr. Gallagher is the latest in a series of recent
good news for Venable's bankruptcy practice.  The firm recently
added Edward Smith, former Assistant U.S. Attorney in New York's
Southern District, to its bankruptcy roster in the New York
office.  Additionally, Mr. Cross and Baltimore bankruptcy partner
Richard Wasserman were selected as Maryland's "Legal Elite" by
Baltimore SmartCEO magazine, with four other Venable attorneys
joining the list.  Tysons Corner bankruptcy partner Lawrence Katz,
who recently secured a victory before the U.S. Supreme Court in a
bankruptcy-related matter, has just been named a finalist in the
"Top Washington Lawyers" awards by the Washington Business
Journal.  The winners will be selected next month.  "Steve's
arrival brings our number of bankruptcy lawyers to eighteen and
further enhances our coverage of cases not just regionally, but
nationwide," Mr. Katz said.

Mr. Gallagher is a member of the American Bankruptcy Institute and
a member of the editorial committee for the Bankruptcy Law News
publication of the Bankruptcy Section of the Virginia State Bar.
He is Chairman of the Board of the Virginia State Bar's Clients'
Protection Fund, and serves as an officer of the Walter Chandler
American Inn of Court.  Mr. Gallagher clerked for the Honorable
Blackwell Shelley in the Bankruptcy Court for the Eastern District
of Virginia.

Mr. Gallagher earned his J.D. in Banking and Financial Services
Law from George Mason University School of Law in 1994, where he
was Associate Journal Editor of the Letter of Credit Update, and
holds a B.S. in Psychology from James Madison University.

                          About Venable

As one of American Lawyer's top 100 law firms, Venable LLP --
http://www.venable.com/-- has attorneys practicing in all areas
of corporate and business law, complex litigation, intellectual
property and government affairs.  Venable serves corporate,
institutional, governmental, nonprofit and individual clients
throughout the U.S. and around the world from its headquarters in
Washington, D.C. and offices in California, Maryland, New York and
Virginia.


* Chapter 11 Cases with Assets & Liabilities Below $1,000,000
-------------------------------------------------------------
Recent chapter 11 cases filed with assets and liabilities below
$1,000,000:

In re Brush Building and Remodeling Inc.
   Bankr. S.D. Fla. Case No. 06-14273
      Chapter 11 petition filed September 5, 2006
         See http://bankrupt.com/misc/flsb06-14273.pdf

In re New Bethel Love Center, Inc.
   Bankr. D. S.C. Case No. 06-03919
      Chapter 11 petition filed September 5, 2006
         See http://bankrupt.com/misc/scb06-03919.pdf

In re RAS Management, Inc.
   Bankr. E.D. Tex. Case No. 06-10359
      Chapter 11 petition filed September 5, 2006
         See http://bankrupt.com/misc/txeb06-10359.pdf

In re 201 North Second Street, Inc.
   Bankr. M.D. Penn. Case No. 06-01923
      Chapter 11 petition filed September 6, 2006
         See http://bankrupt.com/misc/paeb06-01923.pdf

In re Bruce Stuart Boone
   Bankr. D.C. Case No. 06-00309
      Chapter 11 petition filed September 7, 2006
         See http://bankrupt.com/misc/dcb06-00309.pdf

In re Raindrops Inc.
   Bankr. D. Colo. Case No. 06-16180
      Chapter 11 petition filed September 7, 2006
         See http://bankrupt.com/misc/cob06-16180.pdf

In re Hair by Maxelles, Inc.
   Bankr. N.D. Ohio Case No. 06-14101
      Chapter 11 petition filed September 8, 2006
         See http://bankrupt.com/misc/ohnb06-14101.pdf

In re Palm Investments, L.L.C.
   Bankr. D. Utah Case No. 06-23399
      Chapter 11 petition filed September 8, 2006
         See http://bankrupt.com/misc/utb06-23399.pdf

In re SFG Licensing Corp.
   Bankr. W.D. Tex. Case No. 06-11424
      Chapter 11 petition filed September 8, 2006
         See http://bankrupt.com/misc/txwb06-11424.pdf

In re Alan Breslin & Susan Ann Axelroth
   Bankr. N.D. Ala. Case No. 06-71266
      Chapter 11 petition filed September 11, 2006
         See http://bankrupt.com/misc/alnb06-71266.pdf

In re BEC Development Corporation
   Bankr. N.D. Ga. Case No. 06-71208
      Chapter 11 petition filed September 11, 2006
         See http://bankrupt.com/misc/ganb06-71208.pdf

In re The Nashville Company, Inc.
   Bankr. M.D. Tenn. Case No. 06-05019
      Chapter 11 petition filed September 11, 2006
         See http://bankrupt.com/misc/tnmb06-05019.pdf

In re Compudata Realty
   Bankr. M.D. Penn. Case No. 06-01971
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/pamb06-01971.pdf

In re Franklin D. Tyree
   Bankr. W.D. Tenn. Case No. 06-12230
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/tnwb06-12230.pdf

In re Enterprises of Elegance, Inc.
   Bankr. M.D. Penn. Case No. 06-01970
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/pamb06-01970.pdf

In re De Vallis Realty Trust
   Bankr. D. Mass. Case No. 06-41807
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/mab06-41807.pdf

In re Moseley enterprises, Inc.
   Bankr. S.D. Ala. Case No. 06-11659
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/alsb06-11659.pdf

In re Houshang Farokhi Anderson & Sosan Farokhi Yadegar
   Bankr. C.D. Calif. Case No. 06-14413
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/cacb06-14413.pdf

In re Patrician Enterprises, Inc.
   Bankr. D. N.M. Case No. 06-11576
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/nmb06-11576.pdf

In re Sidco Transportation, LLC
   Bankr. E.D. Ark. Case No. 06-14038
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/areb06-14038.pdf

In re Stan's Family Restaurant, Inc.
   Bankr. W.D. Penn. Case No. 06-24471
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/pawb06-24471.pdf

In re Terry Mann
   Bankr. S.D. Miss. Case No. 06-01902
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/mssb06-01902.pdf

In re Vendanges, LLC
   Bankr. D. N.M. Case No. 06-11577
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/nmb06-11577.pdf

In re University Greek, Incorporated
   Bankr. E.D. Penn. Case No. 06-14066
      Chapter 11 petition filed September 12, 2006
         See http://bankrupt.com/misc/paeb06-14066.pdf

                             *********

Monday's edition of the TCR delivers a list of indicative prices
for bond issues that reportedly trade well below par.  Prices are
obtained by TCR editors from a variety of outside sources during
the prior week we think are reliable.  Those sources may not,
however, be complete or accurate.  The Monday Bond Pricing table
is compiled on the Friday prior to publication.  Prices reported
are not intended to reflect actual trades.  Prices for actual
trades are probably different.  Our objective is to share
information, not make markets in publicly traded securities.
Nothing in the TCR constitutes an offer or solicitation to buy or
sell any security of any kind.  It is likely that some entity
affiliated with a TCR editor holds some position in the issuers'
public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies with
insolvent balance sheets whose shares trade higher than $3 per
share in public markets.  At first glance, this list may look like
the definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com/

On Thursdays, the TCR delivers a list of recently filed chapter 11
cases involving less than $1,000,000 in assets and liabilities
delivered to nation's bankruptcy courts.  The list includes links
to freely downloadable images of these small-dollar petitions in
Acrobat PDF format.

Each Friday's edition of the TCR includes a review about a book of
interest to troubled company professionals.  All titles are
available at your local bookstore or through Amazon.com.  Go to
http://www.bankrupt.com/books/to order any title today.

Monthly Operating Reports are summarized in every Saturday edition
of the TCR.

For copies of court documents filed in the District of Delaware,
please contact Vito at Parcels, Inc., at 302-658-9911.  For
bankruptcy documents filed in cases pending outside the District
of Delaware, contact Ken Troubh at Nationwide Research &
Consulting at 207/791-2852.

                             *********

S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter is a daily newsletter co-published
by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Marie Therese V. Profetana, Robert Max Victor M. Quiblat II,
Shimero R. Jainga, Joel Anthony G. Lopez, Rizande B. Delos Santos,
Cherry A. Soriano-Baaclo, Christian Q. Salta, Jason A. Nieva,
Lucilo M. Pinili, Jr., Tara Marie A. Martin, Melvin C. Tabao, and
Peter A. Chapman, Editors.

Copyright 2006.  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 $725 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same firm
for the term of the initial subscription or balance thereof are
$25 each.  For subscription information, contact Christopher Beard
at 240/629-3300.

                    *** End of Transmission ***