T R O U B L E D C O M P A N Y R E P O R T E R Friday, February 2, 2007, Vol. 11, No. 28 Headlines ADELPHIA COMMS: Equity Panel To Appeal Order Confirming ACOM Plan ADELPHIA COMMS: Inks Pact Resolving Law Debenture Trust's Claims ADVANCED MARKETING: Gets Authority to Employ BSI as Claims Agent ADVANCED MARKETING: Court Dismisses Class Action Filed Against AMS AH-DH APARTMENTS: Judge Rhoades Confirms Amended Chapter 11 Plan ALLIED HOLDINGS: Will Hold Annual Shareholders' Meeting on May 17 ASARCO LLC: Wants 2007 Labor Agreement With USW Approved ASARCO LLC: Seeks Court Okay on Arizona Litigation Settlement Pact ASSURED PHARMACY: Completes $2,458,500 Financing of 18% Debentures AUDIOVOX CORP: Acquires Thomson's Americas for $59 Million AZ CHEM: Moody's Junks Rating on $136 Mil. Second Lien Term Loan BALDOR ELECTRIC: Prices Offerings of Common Stock and Senior Notes BONANZA PRODUCTS: Case Summary & 20 Largest Unsecured Creditors C.P.A. INSURANCE: A.M. Best Says Financial Strength is Fair CAITHNESS COSO: Fitch Lifts Rating on $90 Million Notes to BB+ CAPITAL ONE: Earns $390.7 Million in Fourth Quarter of 2006 CAPITAL ONE: Majority Vote Standard for Election of Directors OK'd CATHOLIC CHURCH: Portland Confirmation Hearing Begins on April 10 CATHOLIC CHURCH: Portland Ct. Will Estimate Unresolved Tort Claims CATHOLIC CHURCH: Ct. OKs Catholic Finance as Spokane Fin'l Advisor CCT COMMUNICATIONS: Case Summary & 7 Largest Unsecured Creditors CELESTICA INC: S&P Puts Ratings on Negative CreditWatch CELL THERAPEUTICS: To Restate Financial Reports for Three Quarters CHARMING CASTLE: Trustee Hires Clydette Hughes as Liquidator CLADDAGH DEVELOPMENT: Chapter 11 Case Summary COLLINS & AIKMAN: President and CEO Frank Macher Resigns COLLINS & AIKMAN: Has Until March 28 to File Chapter 11 Plan CREDIT SUISSE: S&P Lifts Rating on Class K Certs. to BB+ from BB CWMBS INC: Fitch Assigns Low-B Rating on 2 Certificate Classes DANA CORP: Seeking Court's Approval on Amended Credit Agreement DAVITA INC: Announces Completion of Government Investigation DELPHI CORP: Selects Platinum Equity as Lead Bidder in Unit Sale DELPHI CORP: InPlay Technologies Wants $7.5 Million Claim Approved DELTA AIR: Claimholders Express Disappointment at Official Panel EASTMAN KODAK: Earns $17 Million in Fourth Quarter of 2006 EASTMAN KODAK: Moody's Continues Review on Ratings & May Downgrade EDDIE BAUER: Tax Review Determines Fin'l. Restatement Not Required ENTERGY NEW ORLEANS: Court Sets May 2 & 3 Confirmation Hearing ENTERGY NEW ORLEANS: Solicit Votes for Amended Chapter 11 Plan EPIC DATA: December 31 Balance Sheet Upside-Down by $1.9 Million FAMILY LIFE: A.M. Best Lifts Rating and Says Outlook is Stable FOAMEX INT'L: Delaware Court Confirms Plan of Reorganization GREAT LAKES: A.M. Best Lowers Financial Strength Rating to B- GREEN HOLDING: Case Summary & Two Largest Unsecured Creditors GSAMP TRUST: Moody's Puts Ratings on Review for Possible Downgrade GSR MORTGAGE: Fitch Rates $4.3 Million Class B5 Certificates at B HILCORP ENERGY: S&P Affirms Corporate Credit Rating at B+ HILTON HOTELS: Asset Sale Prompts S&P's Positive CreditWatch HILTON HOTELS: Fitch Lifts Ratings and Assigns Positive Outlook HOME PRODUCTS: Court Approves Second Amended Disclosure Statement HOME PRODUCTS: Confirmation Hearing Scheduled on March 8 HOME PRODUCTS: Appoints Joseph Gantz as Executive Board Chairman HUNTINGTON BANCSHARES: Earns $87.7 Million in 2006 Fourth Quarter IMMUNE RESPONSE: Noteholder Converts $20,000 to Common Stock INTEGRATED HEALTH: Court Moves Claims Objection Deadline to May 2 INTERNAL INTELLIGENCE: Court Okays Weiser LLP as Financial Advisor IRON AGE: Case Summary & 40 Largest Unsecured Creditors JACUZZI CORP: S&P Junks Rating on Proposed $185 Mil. 2nd-Lien Loan JARDEN CORP: S&P Holds B+ Corp. Credit Rating and Shifts Outlook KINDER MORGAN: Reports 26% Increase in Net income for FY 2006 KINETIC CONCEPTS: Earns $371.5 Million in 2006 Fourth Quarter LA PETITE: S&P Withdraws B- Corporate Credit Rating LEON GOLUMB: Voluntary Chapter 11 Case Summary LIGHTPOINT PAN: Moody's Rates EUR9.5 Mil. Class E Notes at Ba3 MACH ONE: S&P Lifts Rating on Class N Certificates to B+ from B MASTR TRUST: Moody's Puts Ratings on Review for Possible Downgrade MERITAGE MORTGAGE: Moody's Places Ba1 Certificate Rating on Review MESABA AVIATION: Sells Northwest Claim to Goldman Sachs MICHELEX CORP: Hires NY Investment Firm to Complete AGPro Purchase MICHNER PLATING: Case Summary & 20 Largest Unsecured Creditors MISTY HARBOR: Case Summary & Four Largest Unsecured Creditors MORGAN STANLEY: Moody's Cuts Ratings on 2 Certificate Classes NEXTSTEP ACCOMMODATION: Voluntary Chapter 11 Case Summary NYACK HOSPITAL: Moody's Withdraws B3 Rating on Series 1996 Bonds OMNITECH CONSULTANT: Proposes to Exchange 100% of Debt to Equity PACIFIC LUMBER: Court Approves Howard Rice as Bankruptcy Counsel PACIFIC LUMBER: Court Approves Jordan Hyden as Bankruptcy Counsel PERFORMANCE TRANSPORTATION: March 14 is Admin. Claims Bar Date PERFORMANCE TRANSPORTATION: Union Has Prepetition Unsecured Claim PILLOWTEX CORP: Plan Confirmation Hearing Set for February 13 PINE RIVER: Case Summary & 20 Largest Unsecured Creditors PNA GROUP: Moody's Junks Rating on Proposed $150 Mil. Senior Note PNA GROUP: S&P Places Corporate Credit Rating at 'B+' PNA INTERMEDIATE: S&P Assigns 'B+' Corporate Credit Rating PORT TOWNSEND: Bankruptcy Filing Prompts Moody's to Junk Ratings PRIMUS TELECOMMS: Senior Notes Holders Seek Injunctive Relief PUBLIC STEERS: S&P Junks Rating on $231.9 Mil. Class A & B Certs RBSGC MORTGAGE: Fitch Rates $1.9 Million Class B-6 Certs. at B RESIDENTIAL ACCREDIT: Fitch Rates $2 Mil. Class B-2 Certs. at B RESIDENTIAL ACCREDIT: Fitch Puts Low-B Ratings on 4 Cert. Classes RURAL CELLULAR: High Leverage Cues Fitch to Hold Junk Ratings SECURITIZED ASSET: Fitch Puts BB+ Ratings on Three Cert. Classes SEITEL INC: Moody's Rates Proposed $400 Mil. Senior Notes at B3 SEITEL INC: S&P Cuts Corporate Credit Rating to B- from B SOLO CUP: S&P Holds Junk Corp. Credit Rating with Negative Outlook SOUTH STREET CBO: S&P Holds Junk Ratings on 3 Certificate Classes STEEL PARTS: Files Plan of Liquidation and Disclosure Statement STRUCTURED ADJUSTABLE: Fitch Puts Low-B Ratings on $1.3 Mil. Debt STRUCTURED ASSET: Fitch Rates $13.9 Mil. Class B2 Certs. at BB TECHNICAL OLYMPIC: In Talks with Joint Venture Lenders TERWIN MORTGAGE: Moody's Cuts Rating on Class M-2 Certs. to Ba1 TEXAS STUDENT: Moody's Junks Rating on Junior Series Bonds TIGER AIRCRAFT: Chapter 7 Case Summary TIMKEN CO: Lower Automobile Demand Impacts Fourth-Quarter Results TOWN OF MOFFETT: Town Board Chairman Gives Notice of Bankruptcy TRI-NATIONAL DEVELOPMENT: Gets Court Nod to Sell Real Property TYRINGHAM HOLDINGS: Wants Boston Store Lease Rejected UNIFI INC: Appoints William A. Priddy to Board of Directors US AIRWAYS: Pilots Picket at Arizona Corporate Headquarters YUKOS OIL: ESN Consortium Makes First Bid for Bankrupt Assets * Mark B. Childress Joins Foley Hoag LLP as Partner * BOOK REVIEW: American Arbitration: Its History, Functions and Achievements ********* ADELPHIA COMMS: Equity Panel To Appeal Order Confirming ACOM Plan ----------------------------------------------------------------- The Official Committee of Equity Security Holders in Adelphia Communications Corp. and its debtor-affiliates' chapter 11 cases notified the U.S. Bankruptcy Court for the Southern District of New York that it will take an appeal from the Honorable Robert E. Gerber's order confirming the ACOM Debtors' First Modified Fifth Amended Chapter 11 Plan to the U.S. District Court for the Southern District of New York. The Equity Committee wants the District Court to determine: (a) whether the Bankruptcy Court erred in entering the Bench Jan. 3, 2007 decision and January 5 order confirming the Plan over the Equity Committee's objections; (b) whether the Bankruptcy Court had jurisdiction to remove the Equity Committee as a plaintiff in a multi-billion dollar litigation, and transfer the Equity Committee's claims to the creditors, even after the District Court withdrew the reference as to that litigation; (c) whether the Plan is unlawful because it entrusts that multi-billion dollar litigation to creditors who have an intractable conflict of interest because they repeatedly have taken, and continue to take, positions adverse to the interests of equity holders; (d) whether the Confirmation Order violates the Bankruptcy Code by depriving the Equity Committee of the right to prosecute its own objection to the claims filed by Adelphia's prepetition lenders; and (e) whether the Confirmation Order, by terminating the Equity Committee on the Effective Date, improperly deprives the Equity Committee of the right to appeal from the Confirmation Order itself. About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 162; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ADELPHIA COMMS: Inks Pact Resolving Law Debenture Trust's Claims ---------------------------------------------------------------- Law Debenture Trust Company of New York, as indenture trustee under 14 different series of senior notes issued by Adelphia Communications Corp., filed 258 proofs of claim against: (i) ACOM as issuer for principal and interest, indenture trustee fees and expenses and indemnification owed under the ACC Senior Notes; and (ii) multiple non-issuer Debtors for, among other things, alleged wrongdoing under theories of veil-piercing, agency and alter ego; and The ACOM Debtors' First Modified Fifth Amended Chapter 11 Plan provides that the ACC Senior Notes Claims will be allowed for $5,109,693,748, comprising: (a) $4,936,847,118 representing principal; and (b) $172,846,630 representing interest accrued through the Petition Date. The Plan also provides for the allowance of the Trustee Fee Claim and indemnification rights of Law Debenture. Pursuant to the Plan, claims filed by an indenture trustee for tort or claims other than for principal, interest, fees and expenses against the issuers and guarantors of the respective debt securities under the indentures will be deemed disallowed. The U.S. Bankruptcy Court for the Southern District of New York has approved the stipulation. Pursuant to the Court-approved stipulation, the ACOM Debtors and Law Debenture agree that: (1) nine ACC Senior Notes Claims, which were filed against ACOM as issuer for, inter alia, principal and interest owed under the ACC Senior Notes, will be allowed pursuant to the Plan: Claim No. Claim Amount Series of Notes --------- ------------ --------------- 875400 $360,944,792 9.875% Senior Notes due 3/1/07 875500 310,050,000 8.375% Senior Notes due 2/1/08 875600 332,014,583 9.25% Senior Notes due 10/1/02 903800 310,333,333 7.75% Senior Notes due 1/15/09 103,333,333 7.5% Senior Notes due 1/15/04 1142400 134,065,208 9.875% Senior Debentures due 3/1/05 1142500 354,134,375 7.875% Senior Notes due 5/1/09 528,645,833 9.375% Senior Notes due 11/15/09 769,031,250 10.875% Senior Notes due 10/1/10 1,054,097,222 10.25% Senior Notes due 6/15/11 507,687,500 10.25% Senior Notes due 11/1/06 1142600 155,416,667 8.125% Senior Notes due 7/15/03 1142700 32,939,651 9.5% Senior Pay-In-Kind Notes due 2/15/04 1258400 157,000,000 10.5% Senior Notes due 7/15/04 --------------- TOTAL $5,109,693,748 =============== (2) 230 claims filed by Law Debenture for tort or claims other than for principal, interest, fees and expenses against the issuers and guarantors of the respective debt securities under the indentures are disallowed pursuant to the Plan; and (3) the Stipulation will not become effective until the Effective Date of the Plan, and will be deemed null and void if the Effective Date does not occur. About Adelphia Comms Based in Coudersport, Pa., Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The Company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision, LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 162; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). As reported in the Troubled Company Reporter on Jan. 9, 2007, the Honorable Robert E. Gerber of the U.S. Bankruptcy Court for the Southern District of New York has entered an order confirming the first modified fifth amended joint Chapter 11 plan of reorganization of Adelphia Communications Corporation and Certain Affiliated Debtors. ADVANCED MARKETING: Gets Authority to Employ BSI as Claims Agent ---------------------------------------------------------------- Advanced Marketing Services Inc. and its debtor-affiliates obtained permission from the United States Bankruptcy Court for the District of Delaware to employ Bankruptcy Services LLC as claims and noticing agent in their Chapter 11 cases to, among other things: (1) maintain, process and docket claims filed in their bankruptcy cases; (2) transmit notices to appropriate parties as required by the Bankruptcy Code, the Federal Rules of Bankruptcy Procedure and the Local Rules of the District of Delaware; (3) assist the Debtors within the dissemination of solicitation materials relating to a plan of reorganization; and (4) assist the Debtors with the preparation of their schedules and statements. Furthermore, BSI will assist the Debtors with: (1) the preparation of amendments to the master creditor lists; (2) administrative tasks relating to the reconciliation and resolution of claims; and (3) the preparation, mailing and tabulation of ballots for the purpose of voting to accept or reject a Reorganization Plan or Reorganization Plans. BSI will not perform any services involving the exercise of professional judgment without further Court ruling, Mark D. Collins, Esq., at Richards, Layton & Finger, P.A., in Wilmington, Delaware, notes. The Debtors submit that the employment of BSI will promote the economical and efficient administration of their estates because the Debtors will be able to avoid duplication in claims administration, and in providing notices to their creditors. In addition, the Court and the Clerk of Court will be relieved from the heavy administrative burden and other burdens due to the large number of creditors and other parties-in-interest involved in the Debtors' Chapter 11 cases. According to Mr. Collins, BSI is a firm that specializes in claims processing, noticing and other administrative tasks in Chapter 11 cases. BSI has (a) substantial experience in the matters on which it is to be engaged, and (b) acted as official claims agent in several cases in the U.S. Bankruptcy Court for the District of Delaware. Daniel C. McElhinney, BSI Vice President of Client Services, assures the Court that in its capacity as the Claims and Noticing Agent in the Debtors' Chapter 11 cases, BSI: (a) will not consider itself employed by the U.S. Government and will not seek any compensation from the U.S. Government; (b) waives any rights to receive compensation from the U.S. Government; (c) will not be an agent of the U.S. Government and will not act on behalf of the U.S. Government; and (d) will not employ any past or present employees of the Debtors in connection with its work as the Claims and Noticing Agent. Mr. Collins relates that BSI will bill the Debtors monthly, and all invoices will be due and payable upon receipt at these rates: Consulting Services Hourly Rate ------------------- ----------- Senior Bankruptcy Consultant $225 - $295 Bankruptcy Consultant $185 - $225 IT Programming Consultant $140 - $190 Cash Managers-Document and Data Review $125 - $175 Clerical $40 - $60 BSI reserves the right to reasonably increase its prices, charges and rates annually on January 2nd of each year. However, if the increases exceed 10%, BSI will be required to give 60 days' prior written notice to the Debtors. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 3; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) ADVANCED MARKETING: Court Dismisses Class Action Filed Against AMS ----------------------------------------------------------------- The U.S. District Court for the Southern District of California dismissed a class action filed on behalf of purchasers of Advance Marketing common stock from Jan. 16, 1999, to Jan. 13, 2004, inclusive. The lawsuit arose out of Advanced Marketing Services' announcement on Jan. 14, 2004, that it would restate its previously filed financial statements for the prior five fiscal years. The planned restatement resulted from the company's ongoing review of its cooperative advertising practices and related accounting, and relates primarily to the timing and quantification of recognition of revenue and reversal of accrued liabilities. Following the announcement of the restatement, the price of AMS's stock fell 15.2% from $11.97 to $10.15 per share. Afterwards, Debtor and certain of its officers and directors were named as defendants in the federal securities class actions in the U.S. District Court for the Southern District of California in: -- "Eastside Investors, LLP v. Advanced Marketing Services, Inc., et al., Case No. 04-CV-00121 JM (AJB);" -- "Bowen v. Advanced Marketing Services, Inc., et al., Case No. 04-CV-00139 H (JMA);" and -- "Anderson v. Advanced Marketing Services, Inc., et al., Case No. 04-CV-00324 WQH (AJB)." The lawsuits alleged that Advanced Marketing and the individual defendants either knowingly or recklessly made misstatements concerning the company's reported financial results to artificially inflate the price of AMS common stock. On Feb. 24, 2004, the California Court consolidated the federal securities actions into a single case. On May 4, 2004, the Court appointed Detroit P&F, a public pension fund organized for the benefit of current and retired police and fire personnel from the city of Detroit, as lead plaintiff, and approved Detroit P&F's selection of Bernstein Litowitz as lead counsel. In August 2005, the parties participated in a settlement mediation session with the assistance of retired California Court of Appeal Justice Charles S. Vogel. Following mediation session, counsel for the parties continued to discuss settlement. In February 2006, the parties reached agreement on the terms of settlement and executed a Memorandum of Understanding. On Oct. 16, 2006, the Court entered the Order of Final Judgment and Dismissal of the Action with Prejudice and granted final approval of the Settlement, the Plan of Allocation of Settlement Proceeds and the Request for Attorneys' Fees and Reimbursement of Expenses. About Advanced Marketing Based in San Diego, California, Advanced Marketing Services, Inc. -- http://www.advmkt.com/-- provides customized merchandising, wholesaling, distribution and publishing services, currently primarily to the book industry. The company has operations in the U.S., Mexico, the United Kingdom and Australia and employs approximately 1,200 people Worldwide. The company and its two affiliates, Publishers Group Incorporated and Publishers Group West Incorporated filed for chapter 11 protection on Dec. 29, 2006 (Bankr. D. Del. Case Nos. 06-11480 through 06-11482). Suzzanne S. Uhland, Esq., Austin K. Barron, Esq., Alexandra B. Feldman, Esq., O'Melveny & Myers, LLP, represent the Debtors as Lead Counsel. Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors as Local Counsel. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a chapter 11 plan expires on Apr. 28, 2007. (Advanced Marketing Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) AH-DH APARTMENTS: Judge Rhoades Confirms Amended Chapter 11 Plan ---------------------------------------------------------------- The Hon. Brenda T. Rhoades of the U.S Bankruptcy Court for the Eastern District of Texas confirmed AH-DH Apartments Ltd. and its debtor-affiliates' Amended Chapter 11 Plan of Reorganization. Overview of the Plan The Amended Plan contemplates a consolidation and reorganization of the Debtors and payment of all claims, other than the Citigroup Global Markets Realty Corp. fka Salomon Brothers Realty Corp.'s Allowed Secured Claim, which will be paid an agreed amount of $144,000,000, plus amounts provided in the cash collateral order. On the effective date of the Amended Plan, the new investors will make a preferred equity investment which will be coupled with exit financing to make all payments required by the Amended Plan and to cure deferred maintenance on the properties. In addition, the Plan provides the assumption of all executory contracts and unexpired leases not expressly rejected on or before 90 days after confirmation of the Plan. Treatment of Claims Under the Amended Plan, on or before Jan. 31, 2007, the Debtors will pay to Citigroup, a secured creditor, a payoff amount, plus any and all other amounts that due. Each holder of General Unsecured and Class 4 Allowed Secured Claims, other than Citigroup's Secured Claim, will receive payment in full, in cash, on the later of: -- 10 days following the effective date of the Plan; or -- 10 days following the date any such claim becomes an allowed claim. Holders of Equity Interests in the Original Debtors will be exchanged for new equity interests in the Reorganized Debtors, provided, that the new equity interests will be subordinate in right of distribution to the new investors. All Equity Interests in the Equity Debtors will be exchanged for new equity interests in the reorganized DB Holdings LLC, a debtor-affiliate. A full-text copy of the Amended Chapter 11 Plan of Reorganization is available for a fee at: http://www.researcharchives.com/bin/download?id=070131033945 Headquartered in Plano, Texas, AH-DH Apartments, Ltd., owns 16 apartment complexes. The company and three of its affiliates filed for chapter 11 protection on Mar. 22, 2006 (Bank. E.D. Tex. Case No. 06-40355). J. Mark Chevallier, Esq., at McGuire Craddock & Strother, P.C., represents the Debtors. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. DH Holdings Limited Partnership and DH Holdings GP, Inc., filed for chapter 11 protection on Apr. 8, 2006 (Bankr. E.D. Tex. Case Nos. 06-40479 and 06-40480). Another affiliate, DB Holdings, LLC, filed for chapter 11 protection on Apr. 10, 2006 (Bankr. E.D. Tex. Case No. 06-40484). The Debtors' chapter 11 cases are jointly administered under Case No. 06-40355. ALLIED HOLDINGS: Will Hold Annual Shareholders' Meeting on May 17 ----------------------------------------------------------------- Allied Holdings, Inc.'s Board of Directors has set Thursday, May 17, 2007, at 10:00 a.m., Atlanta, GA time, as the date and time for the company's annual meeting of shareholders to be held at the corporate Offices of the company, 160 Clairemont Avenue, 3rd Floor Conference Room, in Decatur, Georgia. The Board has also set April 6, 2007, as the record date for the determination of shareholders entitled to vote at the annual meeting. AHI's announcement, as reported in the Troubled Company Reporter on Jan. 19, 2007, comes as holders of 26.4% of AHI's outstanding shares have sued the Debtor before the U.S. Bankruptcy Court for the Northern District of Georgia to compel its Board to convene the annual shareholders' meeting for the purpose of electing directors Shareholders Virtus Capital LP, Hawk Opportunity Fund, L.P., Aspen Advisors, LP, Sopris Capital Advisors, LLC, Armory Advisors, and Cypress Management Advisors LLC claimed that AHI's Board (i) breached the company's Amended Bylaws and the provisions of Georgia law by refusing to hold the meetings, and (ii) has made decisions that have failed to maximize the value of the Debtors' estate for the benefit of stockholders. About Allied Holdings Based in Decatur, Georgia, Allied Holdings Inc. (AMEX: AHI, other OTC: AHIZQ.PK) -- http://www.alliedholdings.com/-- and its affiliates provide short-haul services for original equipment manufacturers and provide logistical services. The company and 22 of its affiliates filed for chapter 11 protection on July 31, 2005 (Bankr. N.D. Ga. Case Nos. 05-12515 through 05-12537). Jeffrey W. Kelley, Esq., at Troutman Sanders, LLP, represents the Debtors in their restructuring efforts. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor. Anthony J. Smits, Esq., at Bingham McCutchen LLP, provides the Official Committee of Unsecured Creditors with legal advice and Russell A. Belinsky at Chanin Capital Partners, LLC, provides financial advisory services to the Committee. When the Debtors filed for protection from their creditors, they estimated more than $100 million in assets and debts. (Allied Holdings Bankruptcy News, Issue No. 38; Bankruptcy Creditors' Service, Inc. http://bankrupt.com/newsstand/or 215/945-7000) The Honorable Ray Mullins of the U.S. Bankruptcy Court for the Northern District of Georgia gave a bridge order extending the Debtors' exclusive period to February 2, 2007. The Debtors had asked the Court to extend their exclusive period to Feb. 23, 2007, and plan solicitation to April 24, 2007. ASARCO LLC: Wants 2007 Labor Agreement With USW Approved -------------------------------------------------------- ASARCO LLC asks the Honorable Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas to approve a collective bargaining agreement entered into between the Debtors and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC, on behalf of itself and other labor organizations representing ASARCO's employees. The parties had reached a final agreement on the terms of the CBA on Jan. 6, 2007. The CBA, among other things, provides for: -- a $1 wage increase applicable across all seniority classes effective retroactive to January 1, 2007, and subsequent $1 wage increases to become effective on September 30, 2008, and 2009; -- the Unions' right to designate two individuals to serve on ASARCO's Board of Directors and the right to be notified and bid for the purchase of assets if the company decides to sell its assets, both rights are effective only upon entry of a final, non-appealable order confirming a plan of reorganization; and -- various changes in active employee and retiree benefits offered by ASARCO, including the settlement of the retiree litigation commenced in the U.S. District Court for the District of Arizona, Phoenix Division. ASARCO believes that if it cannot obtain approval of the CBA, there is a high likelihood that they would face another work stoppage. The company cannot risk another strike or even the threat of a strike, Jack L. Kinzie, Esq., at Baker Botts L.L.P., in Dallas, Texas, contends. Mr. Kinzie points out several adverse effects of a strike to ASARCO: (1) ASARCO cannot take advantage of the currently high copper prices. The nature of ASARCO's assets is such that the company can achieve maximum efficiency when level of production is highest. High productivity requires a substantial labor force, which will be unavailable in case of a strike. (2) Key customers will curtail their supply contracts with ASARCO and look for other producers. The 2005 Strike has already resulted to a loss of certain key customers suspending their contracts with ASARCO pending its negotiations of a new, long-term labor agreement. (3) The 2005 Strike has caused key salaried employees to resign and look for work in other companies. Another strike will lead to further loss of employees and harm ASARCO's ability to recruit new employees in the future. USW Sets Ratification Schedules The United Steelworkers announced that ratification votes on a tentative 42-month agreement with ASARCO covering some 1,600 hourly workers will be held by the local unions February 5-9, at locations where union members are employed, according to USW District 12 Director Terry Bonds, who also chairs the USW's Nonferrous Industry Conference. The agreement includes a $3,000 ratification bonus; wage increases of $1.00 per hour retroactive to Jan. 1, 2007; $1.00 increases effective Sept. 30, 2008 and 2009; quarterly bonuses tied to the price of copper and a 20 percent increase in the pension formula. Other highlights include no increase in active health care or prescription drug contributions; a new SUB Plan and insurance continuation for employees who are laid off; improvements in other benefit plans; and restoration of most of the health care benefits for previous retirees whose benefits were cut unilaterally by ASARCO in August 2003, and a sizeable reduction in monthly contributions. The proposed agreement has been unanimously recommended for approval by the entire bargaining committee which, in addition to the USW, includes representatives from the IBEW, IAM, Boilermakers, Teamsters, Operating Engineers, Millwrights and Pipefitters. The results will be totaled and each member's vote will count equally. The majority of the total votes cast will determine the results. Following ratification, the agreement will be subject to approval of the bankruptcy court. "The proposed agreement was unanimously recommended for approval by the bargaining committee," Bonds said. "We've negotiated landmark security protections never before achieved in the U.S. mining industry. It's a real milestone for workers in the copper industry." ASARCO employees at five locations in Arizona and Texas are covered under this agreement. Contracts covering approximately 800 hourly employees originally expired on July 1, 2004 between ASARCO and unions at the company's facilities in Amarillo, Texas; Hayden, Ariz.; Sahuarita, Ariz., (Mission Mine) and Marana, Ariz., (Silver Bell Mine). The labor agreement between ASARCO and unions covering approximately 800 hourly employees at the company's Ray Copper Mine originally expired on July 1, 2005. Ratification votes are scheduled as follows: Date Location ---- -------- Feb. 5 Amarillo Copper Refinery Amarillo, Texas Feb. 7 Mission and Silver Bell Mines Tucson, Ariz. Feb. 8 Hayden Smelter Hayden, Ariz. Feb. 9 Ray Mines Kearney, Ariz. Following the vote on February 9, all ballots from all of the locations will be mixed and counted. About ASARCO LLC Based 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's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). (ASARCO Bankruptcy News, Issue No. 37; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Honorable Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas in Corpus Christi had extended the Debtors' exclusive period to file a plan of reorganization until April 6, 2007, and their exclusive period to solicit acceptances of that plan until June 6, 2007. ASARCO LLC: Seeks Court Okay on Arizona Litigation Settlement Pact ------------------------------------------------------------------ ASARCO LLC asks the Honorable Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas to approve the Arizona Litigation settlement agreement. In June 2003, ASARCO LLC, Silver Bell Mining, L.L.C., and Encycle/Texas, Inc., had initiated a class action civil suit No. 03-1297 in the U.S. District Court for the District of Arizona, Phoenix Division, seeking a declaratory judgment to determine rights under certain retiree health and benefit plans. Concurrent with ASARCO's negotiations of a new collective bargaining agreement with certain labor unions, it also negotiated a settlement to resolve all retiree medical benefit claims asserted in the Arizona Litigation. Parties to the Settlement are: * ASARCO LLC; * The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC; the International Brotherhood of Electric Workers Locals 518, 570, 583 and 602; and the International Chemical Workers Union Council of the United Food & Commercial Workers; and * Any individual who was an employee-participant, a dependent or a spouse of a participant in the ASARCO employee benefit plans that provided for retiree health and prescription drug benefits; and * Any individual who retired before Jan. 1, 2007, from a union represented position at an ASARCO, Silver Bell, and Encycle/Texas, location who is not yet 65 years old or is qualified for Medicare. The Settlement provides that: (a) Class Members not yet eligible for Medicare will pay monthly premiums of $100 per participant and a maximum of $200 per family, instead of continuing to pay monthly premiums ranging from $220 to $430 per month. Medicare eligible Class Members who continue to be eligible for benefits will pay monthly premiums of $75 per participant and a $150 maximum per family. (b) Annual deductibles will be reduced to $200 for an individual and $400 for a family. The separate prescription drug deductible that the company had imposed will be eliminated. (c) The general mail order for prescription drug co-pays will be $5 rather than the greater of $5 or 20% of the cost. (d) The new program requires ASARCO to pay 90% of non-drug costs and that retires pay the remaining 10%. However, the out-of-pocket maximum that retirees have to pay is reduced from $5,000 per family and $2,500 per individual down to $2,000 for the entire family. (e) Class Members who have dropped out of the retiree health care plan since 2003 will have a right to re-enroll within a specified period of time. (f) If the Settlement is not approved, the reduced deductibles applicable to Class Members is effective Jan. 1, 2007. To the extent the Class Members have already paid more in deductibles than they would under the new program, they will be reimbursed when an order approving the Settlement and the new collective bargaining agreement becomes final. (g) The new premiums are effective March 1, 2007. (h) If the Settlement is not approved by March 1, 2007, the new benefits, other than the deductibles and premiums, will not be implemented until approval is granted. Class Members will be reimbursed for the difference in benefit levels on the approval. The Parties contend that settlement of the Arizona Litigation will eliminate potential costs of litigating the complex and time-consuming issues, the likely appeals of any rulings, and the complicating factor of the bankruptcy proceeding, as well as any uncertainties as to the outcome of the bankruptcy proceeding. Judge Schmidt directs creditors and other parties-in-interest to file their objections to the approval of the Settlement no later than Feb. 12, 2007. Class Members will have until Feb. 26, 2007, to file objections, if any, to the approval of the Settlement. A fairness hearing on the approval of the Settlement is scheduled on Feb. 28, 2007. About ASARCO LLC Based 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's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). (ASARCO Bankruptcy News, Issue No. 37; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Honorable Richard S. Schmidt of the U.S. Bankruptcy Court for the Southern District of Texas in Corpus Christi had extended the Debtors' exclusive period to file a plan of reorganization until April 6, 2007, and their exclusive period to solicit acceptances of that plan until June 6, 2007. ASSURED PHARMACY: Completes $2,458,500 Financing of 18% Debentures ------------------------------------------------------------------ Assured Pharmacy Inc. has completed a $2,458,500 financing consisting of 18% Unsecured Convertible Debentures. The financing consists of one-year Debentures that bear interest at 18% per annum, with interest being paid in advance in restricted shares of the Company's common stock. Holders may elect to convert their Debentures into APHY common stock based on a conversion price of $0.40 per share. I f a holder elects to convert their Debenture they will be issued one warrant per share, based on the total number of shares issued for the conversion of their Debenture. The warrants are to be divided equally between two classes, one with a strike price of $0.60 per share and a one-year term during which they are exercisable and the other with a strike price of $0.80 per share and a two-year term during which time they are exercisable. The Debentures, exclusive of the warrants, are convertible into 6,146,250 shares of APHY common stock. "This financing should provide us the capital needed to continue to execute on our aggressive growth plan for 2007 and beyond," Robert DelVecchio, CEO of Assured Pharmacy, said. "With the terms of this debenture being convertible at essentially market price, with warrants at significant premiums to market being issued only to holders who elect to convert their debentures, we feel that this is a very attractive financing for the company. Management, myself included, purchased approximately 30% of the placement, adding to our already significant investments." About Assured Pharmacy Based in Irvine, California, Assured Pharmacy Inc., fka eRXSYS Inc. -- http://www.assuredpharmacy.com/-- is a specialty pharmacy chain focused exclusively on fulfilling prescriptions for patients with chronic pain and other long-term care conditions. Assured Pharmacy has agreements with major health plan administrators and prescription compounders licensed by the DEA to provide controlled substances in all 50 states. The company currently operates five retail locations on the west coast, with two in California (Santa Ana and Riverside), one in Oregon (Portland) and one in Washington (Kirkland/Seattle). At Sept. 30, 2006, Assured Pharmacy's balance sheet showed $2,536,636 in total assets, $2,826,817 in total current liabilities, and $549,505 in total minority interest, resulting in an $839,686 stockholders' deficit. The Company's stockholders' deficit at June 30, 2006, stood at $177,763. Going Concern Doubt Squar, Milner, Reehl & Williamson, LLP, expressed substantial doubt about Assured Pharmacy's ability to continue as a going concern after auditing the Company's financial statements for the years ended Dec. 31, 2005 and 2004. The auditing firm pointed to the Company's negative cash flow from operations of approximately $2.7 million in 2005, an accumulated deficit of approximately $15.2 million at Dec. 31, 2005 and recurring losses from operations. AUDIOVOX CORP: Acquires Thomson's Americas for $59 Million ---------------------------------------------------------- Audiovox Corp. has completed its acquisition of Thomson's Americas consumer electronics accessory business for a total purchase price of approximately $59 million, which includes the working capital adjustment. On Dec. 21, 2006, the company has acquired the rights to the RCA brand for Consumer Electronics accessories. The acquisition also includes the Recoton, Spikemaster, Ambico and Discwasher brands for use on any products and the Jensen, Advent, Acoustic Research and Road Gear brands for accessory products. The company already owns Jensen, Advent, Acoustic Research and Road Gear brands for electronics products as part of prior acquisitions. "We are pleased to have closed on this transaction and believe the assimilation of Thomson's product lines and personnel into our operations will be seamless," Patrick Lavelle, President and CEO of Audiovox stated, "as we sell to many of the same customers and have already taken the steps to streamline our operations in anticipation of this deal. "This acquisition significantly enhances our brand portfolio, strengthens our position in the consumer electronics accessories business and puts us in a better position to generate higher returns for our shareholders." About Audiovox Audiovox Corp. (Nasdaq: VOXX) -- http://www.audiovox.com/-- is an international supplier and value added service provider in the consumer electronics industry. The company conducts its business through subsidiaries and markets mobile and consumer electronics products both domestically and internationally under several of its own brands. It also functions as an original equipment manufacturer supplier to a wide variety of customers, through several distinct distribution channels. * * * Audiovox Corp.'s issuer rating carries Moody's Investors Service's B2 rating while its bank loan debt carries Moody's B1 rating. AZ CHEM: Moody's Junks Rating on $136 Mil. Second Lien Term Loan ---------------------------------------------------------------- Moody's Investors Service assigned first-time ratings to AZ Chem Sweden Holdings AB and certain subsidiary debt instruments in connection with Rh"ne Capital LLC's definitive agreement to acquire Arizona from International Paper. The total transaction consideration is estimated to be just over $500 million including fees and expenses. The $500 million acquisition is expected to be financed with aggregate proceeds of $376 million from first and second lien term loan facilities issued by certain U.S. and European subsidiaries of Arizona, and a $128 million cash equity contribution. The rating outlook is stable. Moody's assigned these ratings: * AZ Chem Sweden Holdings AB -- Corporate family rating, B2 -- Probability of default rating, B2 * AZ Chem US Inc. -- $50 million guaranteed First Lien Revolving Credit Facility due 2012, B1, LGD3, 33% -- $140 million First Lien Term Loan due 2013, B1, LGD3, 33% -- $136 million Second Lien Term Loan due 2014, Caa1, LGD5, 79% * AZ Chem Sweden AB -- $100 million equivalent Euro First Lien Term Loan due \ 2013, B1, LGD3, 33% The ratings are subject to the review of executed documents. The B2 corporate family rating assigned to Arizona is constrained by weak pro forma credit metrics. On a pro forma basis at Dec. 31, 2006, debt to EBITDA was about 5.6x and EBITDA to Interest was about 2.1x. Moody's expects pro forma free cash flow to debt of about 3.3% and EBITDA coverage of interest of about 2.0 times in the fiscal year ending Dec. 31, 2007. Moody's projects these credit metrics may improve modestly over time as the company uses excess cash flow to repay term loan borrowings. Other factors constraining the ratings include: (1) the small revenue base of Arizona and reliance on a single primary business - crude tall oil based products; (2) challenges of operating as an fully independent company from the former parent IP; (3) difficult operating performance in 2005 due in part to unusual one time items; and, (4) the narrow financial disclosure, going forward, provided by an issuer with non-SEC filings. The key factors supporting the B2 corporate family rating are the company's market positions, geographic diversification, and long- lived customer and supplier relationships. In addition, the ratings are further aided by high barriers to entry, adequate operating margins and a strong relationship with IP - a key raw material provider. The stable ratings outlook anticipates modest overall revenue growth and operating margin improvement driven primarily by growth and the benefits of cost rationalization. There is no notching differential between the U.S. and European credit facilities due to proposed collateral sharing arrangements among the lenders to the facilities. The relative rights and priorities of the first and second lien lenders will be governed by an intercreditor agreement. Headquartered in Jacksonville, Florida, Arizona is a global leader in the production and sales of pine based specialty chemicals. Estimated revenue for the year ended Dec. 30, 2006, was over $765 million. BALDOR ELECTRIC: Prices Offerings of Common Stock and Senior Notes ------------------------------------------------------------------ Baldor Electric Company has set the price for the public offering of 10,294,118 shares of its common stock at $34 per share and $550 million principal amount of 8.625% senior unsecured notes due 2017. Baldor granted the underwriters an over-allotment option to purchase 1,430,882 additional shares of common stock. The notes will accrue interest at a per year rate equal to 8.625%, payable semiannually, and will mature on Feb. 15, 2017. The proceeds from these offerings, along with borrowings under a new senior secured credit facility and the issuance of common stock to Rockwell Automation, Inc., will be used to finance the acquisition of the Reliance Electric industrial motors and Dodge mechanical power transmission businesses of Rockwell Automation, Inc., repay substantially all of Baldor's indebtedness and pay related fees and expenses. Baldor expects to close the offerings concurrent with the acquisition on Jan. 31, 2007. The issuance of the common stock and senior notes will be subject to the concurrent closing of the acquisition, market conditions and other conditions and there can be no assurance that the issuance will be consummated. UBS Investment Bank is acting as sole book-running manager for the common stock offering and BNP Paribas Securities Corp. and Lehman Brothers Inc. are acting as joint book-running managers for the senior notes offering. The offerings were made under the company's shelf registration statement filed with the Securities and Exchange Commission on Jan. 8, 2007. Common stock offering: UBS Investment Bank Attn: Prospectus Department 299 Park Avenue New York, NY 10171 Telephone (212) 821-3884 Senior notes offering: BNP Paribas Securities Corp. Attn: High Yield Capital Markets 787 7th Avenue New York, NY 10019 Telephone (800) 854-5674 or Lehman Brothers Inc. Attn: High Yield Capital Markets 745 7th Avenue New York, NY 10019 Telephone (888) 603-5847 Based in Fort Smith, Arkansas, Baldor Electric Company (NYSE: BEZ) -- http://www.baldor.com/-- markets, designs, and manufactures industrial electric motors, drives and generators. Founded in 1920, Baldor has approximately 3,950 employees and 13 manufacturing facilities. * * * As reported in the Troubled Company Reporter on Jan. 29, 2007, Moody's Investors Service affirmed the B1 corporate family rating of Baldor Electric Company along with the Ba3 ratings for the proposed senior secured credit facilities and B3 ratings for the proposed $550 million senior unsecured notes following the company's disclosure that the company intends to eliminate a preferred stock issuance from its previously reported financing plans. The rating outlook is stable. BONANZA PRODUCTS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bonanza Products, Inc. 3000 B Conestoga Drive Carson City, NV 89706 Bankruptcy Case No.: 07-50088 Chapter 11 Petition Date: January 31, 2007 Court: District of Nevada (Reno) Judge: Gregg W. Zive Debtor's Counsel: Stephen R. Harris, Esq. Belding, Harris & Petroni, Ltd. 417 West Plumbing Lane Reno, NV 89509 Tel: (775) 786-7600 Fax: (775) 786-7764 Estimated Assets: $1 Million to $100 Million Estimated Debts: $100,000 to $1 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Lockheed Partners, LLC Litigation $105,341 c/o Allison, Mackenzie, Russel, et al. P.O. Box 646 Carson City, NV 89702 Great Basin Manufacturing Judgment $64,674 c/o Gerald Phillips, Esq. P.O. Box 11400 Reno, NV 89510 Paladin Commercial Group LLC Goods/Services $24,417 3140 South Peoria Street Suite 119 Aurora, CO 80014 J.D. Engineering Goods/Services $23,786 Triad Plastic Technologies Litigation $15,389 CST Goods/Services $13,621 Aero Machine Goods/Services $12,035 Sieger Engineering, Inc. Goods/Services $8,300 Giessen Tool & Lathe Inc. Goods/Services $7,521 Pigeon Mountain Industries, Goods/Services $5,560 Inc. VMI Goods/Services $4,665 Integrity Consultants, Inc. Goods/Services $4,622 Digi-Key Corporation Goods/Services $4,276 Motion Industries, Inc. Goods/Services $3,870 McMaster-Carr Supply Co. Goods/Services $3,317 Re Fastener Company Goods/Services $3,119 Stock Drive Prod. Goods/Services $2,866 Petzl America Goods/Services $2,136 Kessler-Ellis Products Co. Goods/Services $2,070 Allied Electronics Goods/Services $1,361 C.P.A. INSURANCE: A.M. Best Says Financial Strength is Fair ----------------------------------------------------------- A.M. Best Co. has assigned a financial strength rating of B (Fair) to C.P.A. Insurance Company (West Bloomfield, MI). The rating outlook is stable. The assigned rating level is largely based on CPA's volatile underwriting performance and elevated expense ratio. These factors are partially offset by CPA's low underwriting leverage and well-established history of providing insurance and income protection to railroad employees for over 100 years. The company is currently focused on providing new products, which should help improve its economies of scale. Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. CAITHNESS COSO: Fitch Lifts Rating on $90 Million Notes to BB+ -------------------------------------------------------------- Fitch Ratings has upgraded to 'BB+' from 'BB-' the rating of Caithness Coso Funding Corp.'s $90 million subordinated secured notes due 2014. Both the subordinated notes and the 'BBB-' rated $375 million senior secured bonds due 2019 remain on Rating Watch Positive. The rating actions are due to the extension of the fixed price period through 2012. The extension agreement, which was granted final approval by the California Public Utilities Commission in October 2006, requires Southern California Edison to purchase contracted energy output from Coso at a fixed price of 6.15 cents/kWh, escalating annually at 1%. Coso's current power purchase agreements expire in 2010, 2011, and 2019. Consequently, Fitch expects Coso to receive a highly stable stream of cash flow over the next five years with minimal price volatility. Separately, Coso and SCE have executed long-term, fixed-price PPAs that will replace the current PPAs when they expire; the CPUC must review and approve the new agreements before they take effect. The credit quality of the subordinated notes is considerably enhanced by the extension of the fixed price period, which will provide strong cash flow stability through 2012. Furthermore, consolidated debt service declines by approximately 30% after 2011, enhancing Coso's ability to withstand a low price environment upon expiration of the fixed price period. Fitch's projections indicate that consolidated debt service coverage ratios in a low price environment could range from 1.2x to 1.4x, depending on Coso's ability to stabilize the geothermal resource. While Coso's financial performance prior to 2012 has strengthened, the credit quality of the senior bonds continues to be constrained by the long-term risk of geothermal depletion. Coso has experienced administrative delays that have held back the construction of the Hay Ranch project, which is intended to stabilize the geothermal resource and prevent depletion through a program of supplemental water injection. While Coso could potentially resolve outstanding permitting issues in the short term, it is uncertain whether the Hay Ranch project will encounter further delays; Coso originally planned to complete construction of the Hay Ranch project in Fall 2006. If the Hay Ranch project remains incomplete or does not operate as planned, revenues could steadily decrease as output declines, leaving Coso vulnerable to a year of low prices. In such a scenario, Fitch- projected senior DSCRs could fall to approximately 1.60x after 2012. Alternatively, the credit quality of the senior bonds would be enhanced by the successful implementation of the Hay Ranch project; accordingly, Fitch has maintained the Rating Watch Positive on the senior bonds. Both the senior and subordinate ratings remain on Rating Watch Positive pending regulatory approval of the new PPAs, which would minimize price risk and provide Coso with extremely strong cash flow stability over the long term. The new agreements, which would extend through 2030 and take effect with the expiry of the existing PPAs, require SCE to purchase Coso's output at a fixed price. It is uncertain whether the PPAs will receive the CPUC's final approval, and the duration of the regulatory process cannot be determined at this time. Coso is a special-purpose company formed to issue debt on behalf of the Coso partnerships, the owners of the Coso projects, and the guarantors of the rated debt. The projects consist of three interlinked 80-MW geothermal power plants and their transmission lines, steam gathering systems, and other related facilities located at the Navy Weapons Center in Inyo County, California. Electric energy and capacity are sold to SCE under separate SO4 contracts expiring in 2010, 2011, and 2019. Coso provides royalty payments to the U.S. Navy and the Bureau of Land Management for use of the geothermal resource. CAPITAL ONE: Earns $390.7 Million in Fourth Quarter of 2006 ----------------------------------------------------------- Capital One Financial Corporation's earnings for the fourth quarter of 2006 were $390.7 million, compared with $280.3 million, for the fourth quarter of 2005, and $587.8 million for the third quarter of 2006. The company's 2007 earnings estimates include expectations for a continued challenging interest rate environment and cyclical pressures in the mortgage industry, a return to more normal charge-off levels in its US unsecured national lending businesses, and the repurchase of $2.25 billion of the company's shares beginning in the second quarter of 2007. Additionally, the 2007 earnings estimates include $430.0 million (after-tax) of financing costs, restructuring charges, and purchase accounting impacts resulting from the acquisition of North Fork. While the company still expects to achieve the target level of $275.0 million (pre-tax) of synergies in connection with the North Fork integration, it expects these synergies will be realized partially in 2007 and more significantly late in 2008 as a result of the challenging interest rate environment and the timeline for conversion to a single deposit platform and brand. Commenting on the results, Richard D. Fairbank, Capital One's chairman and chief executive officer, said "[d]espite cyclical pressures in banking and the mortgage industry, the acquisitions of North Fork and Hibernia position us to drive growth, generate capital, and deliver sustainable and attractive shareholder returns well into the future. Our focus now is on sure-footed execution as we integrate these proven banking franchises and build the infrastructure to win long- term." Managed loans held for investment at Dec. 31, 2006, were $146.2 billion, up $40.6 billion, or 38%, from Dec. 31, 2005. Excluding the impact of $31.7 billion of loans acquired through North Fork, managed loans grew 8.4 % in 2006, in line with expectations. Growth in the fourth quarter of 2006, excluding the impact of North Fork, was $2.2 billion, spread broadly across all of its North American businesses. The managed charge-off rate for the company decreased to 2.99% in the fourth quarter of 2006 from 4.53 % in the fourth quarter of 2005, but rose from 2.92% in the previous quarter. The company increased its allowance for loan losses by $114.1 million in the fourth quarter of 2006, excluding the addition of allowance from the acquisition of North Fork. This increase was driven primarily by the expectation of continued normalization of charge- offs in the company's US unsecured national lending businesses. The managed delinquency rate (30+ days) decreased to 3.02% as of Dec. 31, 2006, driven largely by the addition of North Fork loans to the portfolio. The delinquency rate decreased from 3.24% as of the end of December 31, 2005 and decreased from 3.29% as of Sept. 30, 2006. Without the addition of the North Fork loans, the charge-off and delinquency rates would have increased in the fourth quarter of 2006 to 3.25% and 3.68%, respectively. Fourth quarter marketing expenses decreased $51.7 million to $395.7 million from $447.4 million in the fourth quarter of 2005, but increased $27.2 million from the third quarter of 2006 expense of $368.5 million. Marketing expenses for 2006 were $1.4 billion, up $64.7 million, or five %, over 2005. Annualized operating expenses as a %age of average managed loans decreased to 5.13% in the fourth quarter of 2006 from 5.27% in the fourth quarter of 2005, but increased from 4.92% in the previous quarter driven by the inclusion of North Fork, infrastructure investments, and branch expansion. This quarter's results also include resolution of certain federal and state tax issues resulting in a $28.8 million reduction of tax expense. Headquartered in McLean, Virginia, Capital One Financial Corporation -- http://www.capitalone.com/-- is a financial holding company, with more than 700 locations in New York, New Jersey, Connecticut, Texas and Louisiana that offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Its principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., Capital One, N.A., and North Fork Bank offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One's subsidiaries collectively had $85.8 billion in deposits and $146.2 billion in managed loans outstanding as of Dec. 31, 2006. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index. * * * Capital One Financial Corp. has a "B" individual rating from Fitch. The rating was placed on Aug. 16, 2002, with a positive outlook. CAPITAL ONE: Majority Vote Standard for Election of Directors OK'd ------------------------------------------------------------------ Capital One Financial Corp.'s Board of Directors has approved an amendment to the company's Certificate of Incorporation that, combined with an amendment to the company's Bylaws, will establish a majority voting standard for the election of directors. The amendment to the Certificate of Incorporation will be placed on the ballot for approval by Capital One's stockholders at the company's 2007 Annual Stockholder Meeting on April 26 in McLean, Virginia. The proposed majority vote standard requires that each nominee for the Board in future uncontested elections receive an affirmative majority of votes cast in order to be elected. Capital One's Corporate Governance Policy already requires any incumbent director who does not receive an affirmative majority of the votes cast in an uncontested election to tender his or her resignation to the Board, which will decide within 90 days whether or not to accept the resignation. Additionally, the Board of Directors approved the repurchase of up to $3.0 billion of the company's Common Stock, beginning in the second quarter of 2007 and continuing through the second quarter of 2008. The repurchased shares will be accounted for as treasury shares and may be used for general corporate purposes. Repurchases will be made through open market or privately negotiated transactions from time to time at prevailing market prices. Repurchases under the program will be made in compliance with Rule 10b-18 of the Securities Exchange Act of 1934 (as applicable) and other applicable securities laws. As of Dec. 31, 2006, the Company had outstanding approximately 409.9 million shares of Common Stock. Finally, the company announced a quarterly dividend of 2.70 cents per share payable Feb. 22, 2007, to stockholders of record as of Feb. 12, 2007. The company has announced dividends every quarter since it became an independent company on Feb. 28, 1995. Dividends declared by the company are eligible for direct reinvestment in the company's common stock under its Dividend Reinvestment and Stock Purchase Plan. Headquartered in McLean, Virginia, Capital One Financial Corporation -- http://www.capitalone.com/-- is a financial holding company, with more than 700 locations in New York, New Jersey, Connecticut, Texas and Louisiana that offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Its principal subsidiaries, Capital One Bank, Capital One, F.S.B., Capital One Auto Finance, Inc., Capital One, N.A., and North Fork Bank offer a broad spectrum of financial products and services to consumers, small businesses and commercial clients. Capital One's subsidiaries collectively had $85.8 billion in deposits and $146.2 billion in managed loans outstanding as of Dec. 31, 2006. Capital One, a Fortune 500 company, trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 100 index. * * * Capital One Financial Corp. has a "B" individual rating from Fitch. The rating was placed on Aug. 16, 2002, with a positive outlook. CATHOLIC CHURCH: Portland Confirmation Hearing Begins on April 10 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Oregon will convene a hearing on April 10, 11, and 12, 2007, at 9:00 a.m. each day, to consider confirmation of the Joint Plan of Reorganization filed by the Archdiocese of Portland in Oregon; the Tort Claimants Committee appointed to represent the interests of Known Tort Claimants; David A. Foraker, in his capacity as Future Claimants Representative; and the Parish and Parishioners Committee. The Court has set a tight schedule for the critical activities necessary to plan confirmation, says Thomas V. Dulcich, Esq., at Schwabe Williamson & Wyatt, P.C., in Portland, Oregon. Judge Perris will convene a preliminary hearing on April 4, 2007, to consider issues relating to confirmation of the proposed Joint Plan. The hearing to consider approval of the proposed Disclosure Statement describing the Plan is on Feb. 5, 2007, at 9:00 a.m. The Archdiocese of Portland in Oregon filed for chapter 11 protection (Bankr. Ore. Case No. 04-37154) on July 6, 2004. Thomas W. Stilley, Esq., and William N. Stiles, Esq., at Sussman Shank LLP, represent the Portland Archdiocese in its restructuring efforts. Albert N. Kennedy, Esq., at Tonkon Torp, LLP, represents the Official Tort Claimants Committee in Portland, and scores of abuse victims are represented by other lawyers. David A. Foraker serves as the Future Claimants Representative appointed in the Archdiocese of Portland's Chapter 11 case. In its Schedules of Assets and Liabilities filed with the Court on July 30, 2004, the Portland Archdiocese reports $19,251,558 in assets and $373,015,566 in liabilities. (Catholic Church Bankruptcy News, Issue No. 77; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Portland Ct. Will Estimate Unresolved Tort Claims ------------------------------------------------------------------ In a stipulation approved by the U.S. Bankruptcy Court for the District of Oregon, the Archdiocese of Portland in Oregon, the Official Committee of Tort Claimants, the Future Claimants Representative, and the Parish and Parishioners Committee, agree that for purposes of voting on the proposed Joint Plan of Reorganization, the Court, prior to the deadline for voting on the Plan, will estimate the remaining Unresolved Known Tort Claims. Specifically, the parties agree that: (a) Each holder of an Unresolved Known Tort Claim has until Jan. 31, 2007, to file with the Court and serve on Portland: -- a proposed estimated Claim amount; and -- admissible evidence and supporting documents; (b) Portland has until Feb. 9, 2007, to file responses and objections to each Claimant's Submissions; (c) The Court will estimate the Claims based solely on the written Submissions without a hearing; and (d) If a Claimant fails to timely file the required Submissions, the Claimant's claim will be temporarily allowed for $5,000, for voting purposes only. Judge Perris sets Feb. 16, 2007, 9:00 a.m., as the final hearing to determine the methodology to be utilized for estimating remaining Unresolved Known Tort Claims for purposes other than voting on the Plan. On Feb. 27 to 28, 2007, at 9:00 a.m. each day, Judge Perris will convene final hearings to determine the estimated amount of each remaining Unresolved Known Tort Claim for purposes other than voting on the Plan -- given the hearings are conducted by the Bankruptcy Court. Judge Perris gave Portland, the Tort Claimants Committee, and other interested parties a chance to file submissions setting forth proposed methodologies and supporting memoranda for the estimation of the remaining Unresolved Known Tort Claims. The parties were directed to clearly state whether they want the estimation proceedings to be conducted by the U.S. District Court for the District of Oregon rather than the Bankruptcy Court. The deadline to file the submissions expired on Jan. 29, 2007. The Archdiocese of Portland in Oregon filed for chapter 11 protection (Bankr. Ore. Case No. 04-37154) on July 6, 2004. Thomas W. Stilley, Esq., and William N. Stiles, Esq., at Sussman Shank LLP, represent the Portland Archdiocese in its restructuring efforts. Albert N. Kennedy, Esq., at Tonkon Torp, LLP, represents the Official Tort Claimants Committee in Portland, and scores of abuse victims are represented by other lawyers. David A. Foraker serves as the Future Claimants Representative appointed in the Archdiocese of Portland's Chapter 11 case. In its Schedules of Assets and Liabilities filed with the Court on July 30, 2004, the Portland Archdiocese reports $19,251,558 in assets and $373,015,566 in liabilities. (Catholic Church Bankruptcy News, Issue No. 77; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CATHOLIC CHURCH: Ct. OKs Catholic Finance as Spokane Fin'l Advisor ------------------------------------------------------------------ The Honorable Patricia C. Williams of the U.S. Bankruptcy Court for the Eastern District of Washington authorized the Diocese of Spokane to employ Catholic Finance Corporation as its financial consultant. As reported in the Troubled Company Reporter on Dec. 12, 2006, Spokane Bishop William S. Skylstad related that in connection with the Diocese's Plan of Reorganization, Spokane will require the services of a financial consultant to develop a financing plan and obtain monetary support to partially fund the Plan. He adds that CFC specializes as a financial consultant for Catholic organizations. In exchange for its services, CFC will be paid based on its hourly rate of: Designation Hourly Rate ----------- ----------- Professional members $240 Other staff members $80 The accumulated fees will be paid from the proceeds of the financing fund when it closes, but the Spokane Diocese will remain responsible for fees in the event financing does not come to fruition, Bishop Skylstad disclosed. In either case, CFC will be paid within nine months of initiating the engagement. Necessary expenses will be reimbursed monthly, Bishop Skylstad explained. Bishop Skylstad assured the Court that CFC: a) does not hold or represent an interest adverse to the estate; b) is a "disinterested person"; and c) has not served as examiner to the Spokane Diocese's case. The Roman Catholic Church of the Diocese of Spokane filed for chapter 11 protection (Bankr. E.D. Wash. Case No. 04-08822) on Dec. 6, 2004. Michael J. Paukert, Esq., at Paine, Hamblen, Coffin, Brooke & Miller, LLP, represents the Spokane Diocese in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $11,162,938 in total assets and $81,364,055 in total debts. (Catholic Church Bankruptcy News, Issue No. 76; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) CCT COMMUNICATIONS: Case Summary & 7 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: CCT Communications, Inc. 60 Hudson Street, Suite 1802 New York, NY 10013 Bankruptcy Case No.: 07-10210 Chapter 11 Petition Date: January 29, 2007 Court: Southern District of New York (Manhattan) Judge: Stuart M. Bernstein Debtor's Counsel: Arnold Mitchell, Esq. Greene Robinson Brog Leinwand Greene Genovese & Gluck, P.C. 1345 Avenue of the Americas, 31st Floor New York, NY 10105 Tel: (212) 586-4050 Fax: (212) 956-2164 Total Assets: $774,047 Total Debts: $1,028,249 Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Global Crossing Telecommunications, Inc. $784,221 1080 Pittsford-Victor Road Pittsford, NY 14534 Attn: Glenn Swartz Zonje Telecom Inc. $235,000 3 Executive Campus, Suite 520 Cherry Hill, NJ 08002 Attn: Eamon Egan Metcom Network Services Inc. $5,250 47 Fairchild Avenue P.O. Box 1035 Plainview, NY 11803 Tier Zero $1,575 700 Wilshire, 6th Floor Los Angeles, CA 90017 Federal Express $1,500 Revenue Recovery Department P.O. Box 371461 Pittsburgh, PA 15250-7461 Time Warner Telecom $540 P.O. Box 172567 Denver, CO 80217 Connecticut Department of Labor $162 152 West Street Danbury, CT 06810 CELESTICA INC: S&P Puts Ratings on Negative CreditWatch ------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings, including its 'BB-' long-term corporate credit rating, on Celestica Inc. on CreditWatch with negative implications. This action follows the company's weak fourth-quarter operating results, which reflected larger-than-expected weakness in end- market demand, particularly with respect to key elecommunications clients and persistent problems at the company's Mexican operations. "Although revenues from the majority of Celestica's customer segments grew in the fourth quarter, revenues from the telecommunications segment declined 28% from the third quarter," said Standard & Poor's credit analyst Don Povilaitis. "Likewise, revenues declined from the automotive and defense segments, as well as the consumer business segment, demand of which (despite an element of seasonality) has become inherently unpredictable," added Mr. Povilaitis. The company's Mexican operations remain challenged, affected by the continued execution issues that resulted in lost customers and an unadjusted EBIT loss. Celestica has a three-step plan to rectify its production problems, including reducing parts complexity, reducing multiple platforms, and ensuring reliable delivery by consolidating warehouses. The company also has transferred several customer orders to its Asian facilities. Standard & Poor's remains concerned with Celestica's prospects for fiscal 2007, with no improvement expected before the second half of 2007, as the company is likely to remain challenged by persistent weakness in the telecommunications segment and the effect of more customer disengagements. In addition, Standard & Poor's is concerned by the potential disruption caused by recent management turnover, with the imminent resignation of CFO Tony Puppi, which follows the departure in late 2006 of President Steve Delaney. Standard & Poor's will meet with Celestica's management shortly in order to resolve the CreditWatch placement. CELL THERAPEUTICS: To Restate Financial Reports for Three Quarters ------------------------------------------------------------------ Cell Therapeutics Inc. said it will restate its financial statements for the quarters ended March 31, June 30, and Sept. 30, 2006. The company has determined that these quarterly statements inadvertently overstated clinical trial and certain settlement expenses. The company expects that the correction of these non- cash errors will result in reduced research and development and settlement expenses attributable to its Bresso, Italy subsidiary by approximately $2 million to $3 million. The company has concluded that these financial statements and all earnings press releases and similar communications issued by the company relating to those periods should no longer be relied upon. The company intends to file restated financial statements as soon as practicable after the completion of its review. About Cell Therapeutic Based in Seattle, Washington, Cell Therapeutics, Inc., (NASDAQ and MTAX: CTIC) -- http://www.cticseattle.com/-- develops, acquires, and commercializes treatments for cancer. The company was co-founded by James A. Bianco, Louis A. Bianco, and Jack W. Singer in 1991. * * * At Sept. 30, 2006, Cell Therapeutics Inc.'s balance sheet showed total assets of $120.9 million, total convertible debt of $168.4 million and a shareholders' deficit of $85.1 million. Shareholders' deficit at Dec. 31, 2005 stood at $107 million. CHARMING CASTLE: Trustee Hires Clydette Hughes as Liquidator ------------------------------------------------------------ The United States Bankruptcy Court for the Northern District of Alabama gave Robert A. Morgan, the trustee overseeing the liquidation of Charming Castle LLC dba Indies House Inc., permission to employ Clydette Hughes as his assets liquidator. The Trustee tells the Court that he has taken possession of numerous properties of the Debtor and needs to liquidate it. Clydette Hughes is expected to: -- store, advertise and market the Debtor's property; and -- hold and conduct sale of property. Ms. Hughes will be compensated through 10% of gross sale price plus reimbursement of necessary out-of-pocket expenses including extraordinary expenses. Ms. Hughes assures the Court that she does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Hackleburg, Alabama, Charming Castle LLC, dba Indies House -- http://www.indieshouse.net/-- manufactures mobile homes. The Company filed for chapter 11 protection on Oct. 5, 2006 (Bankr. N.D. Ala. Case No. 06-71420). Robert L. Shields, III, Esq., at the Shields Law Firm represented the Debtor. Derek F. Meek, Esq., and Jennifer Brooke Kimble, Esq., at Burr & Forman LLP represented the Official Committee of Unsecured Creditors. On Dec. 11, 2006, the Court converted the Debtor's case into chapter 7. Robert A. Morgan serves as trustee and is represented by William Dennis Schilling in Birmingham, Alabama. When the Debtor filed for protection from its creditors, it listed estimated assets of less than $50,000 and debts between $10 million and $50 million. The Debtor's exclusive period to file a chapter 11 plan expires today, Feb. 2, 2007. CLADDAGH DEVELOPMENT: Chapter 11 Case Summary --------------------------------------------- Lead Debtor: Claddagh Development Group, LLC 5075 Deerfield Boulevard Mason, OH 45040 Bankruptcy Case No.: 06-33124 Debtor-affiliate filing separate voluntary chapter 11 petitions on Jan. 18, 2006: Entity Case No. ------ -------- Claddagh Real Estate Company of Solon, LLC 07-30312 Claddagh Precedent Real Estate Company, LLC 07-30313 Claddagh Pubs at the Woodlands, LLC 07-30315 Debtor-affiliate filing separate voluntary chapter 11 petitions on Jan. 11, 2006: Entity Case No. ------ -------- Claddagh Pubs of Deerfield, LLC 07-30124 Claddagh Pubs of Madison, LLC 07-30125 Claddagh Pubs of Lyndhurst, LLC 07-30126 Claddagh Pubs of Geneva, LLC 07-30127 Claddagh Pubs of Polaris, LLC 07-30128 Claddagh Pubs of Arbor Lakes, LLC 07-30129 Claddagh Pubs of Eastwood, LLC 07-30130 Claddagh Pubs of Indianapolis, LLC 07-30131 Claddagh Pubs of Newport, LLC 07-30133 Claddagh Pubs, LLC 07-30134 Debtor-affiliate filing separate voluntary chapter 11 petitions on Jan. 10, 2006: Entity Case No. ------ -------- Claddagh Pubs at the Precedent, LLC 07-30113 Claddagh Pubs of South Side Works, LLC 07-30114 Claddagh Pubs of Franklin Park, LLC 07-30115 Claddagh Pubs of Westlake, LLC 07-30117 Claddagh Pubs of Plainfield, LLC 07-30118 Claddagh Pubs of Algonquin, LLC 07-30119 Claddagh Pubs of College Park, LLC 07-30120 Type of Business: The Debtor operates a number of Irish-themed pubs and restaurants. The Debtor's estate consists of a chain of 17 restaurants, each operated by an affiliate of the Debtor. On average the restaurants hold between 200 to 250 people and employ approximately 75 employees apiece. Claddagh Development is the 100% managing member of the debtor-affiliate entities. See http://www.claddaghirishpubs.com/ and http://www.thecladdaghpub.com/ The John F. Gallagher Company, Queensgate Food Group LLC, Economy Linen Inc.1, and Great Lakes Concrete Restoration, Inc., filed an involuntary chapter 11 petition against Claddagh Development. Economy Linen has since withdrawn as a petitioning creditor. On Dec. 28, 2006, the Court appointed Richard D. Nelson as Claddagh Development's chapter 11 trustee. The chapter 11 trustee filed the voluntary petitions for the debtor-affiliates. Involuntary Chapter 11 Petition Date: October 5, 2006 Court: Southern District of Ohio (Dayton) Judge: Lawrence S. Walter Debtors' Counsel: Ronald S. Pretekin, Esq. Steven M. Wachstein, Esq. Sylvie J. Derrien, Esq. Coolidge Wall Co. LPA Suite 600 33 West First Street Dayton, OH 45402-1235 Tel: (937) 223-8177 Fax: (937) 223-6705 Chapter 11 Trustee: Richard D. Nelson, Esq. Chapter 11 Trustee's Counsel: Richard D. Nelson, Esq. Donald J. Rafferty, Esq. Monica V. Kindt, Esq. Cohen, Todd, Kite & Stanford, LLC 250 East Fifth Street, 12th Floor Cincinnati, Ohio 45202 Official Committee of Unsecured Creditors' Counsel: Douglas L. Lutz, Esq. Frost Brown Todd, LLC 2200 PNC Center, 201 East Fifth Street Cincinnati, OH 45202-4182 Tel: (513) 651-6800 Estimated Assets Estimated Debts ---------------- --------------- Claddagh Real Estate Less than $10,000 Less than $10,000 Company of Solon, LLC Claddagh Precedent Real Less than $10,000 Less than $10,000 Estate Company, LLC Claddagh Pubs at the Less than $10,000 Less than $10,000 Woodlands, LLC Claddagh Pubs of Less than $10,000 $1 Million to Deerfield, LLC $100 Million Claddagh Pubs of Less than $10,000 $1 Million to Madison, LLC $100 Million Claddagh Pubs of Less than $10,000 $1 Million to Lyndhurst, LLC $100 Million Claddagh Pubs of Less than $10,000 $1 Million to Geneva, LLC $100 Million Claddagh Pubs of Less than $10,000 $1 Million to Polaris, LLC