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/raid1/www/Hosts/bankrupt/TCR_Public/070307.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, March 7, 2007, Vol. 11, No. 56 Headlines ADVANCED MICRO: May Not Meet First Quarter 2007 Revenue Target ALM MEDIA: Senior Facilities Add-On Cues Moody's to Hold B3 Rating ALM MEDIA: Bank Facility Increase Cues S&P to Hold B- Rating AMERICAN AIRLINES: Earns $164 Million in Year Ended December 31 AMERIQUEST MORTGAGE: S&P Junks Rating on Class M-4 Loans ANR PIPELINE: S&P Removes Positive Watch and Upgrades Ratings ARIAS ACQUISITIONS: Moody's Cuts Ratings & Says Outlook is Neg. ASTORIA GENERATING: Merger Deal Cues Moody's to Hold Ratings AVNET INC: Prices Offering of 5-7/8% Senior Notes BAUSCH & LOMB: Defers Filing of 2006 Annual Report in Form 10-K BECKMAN COULTER: Earns $186.9 Million in Year Ended December 31 BELDEN CDT: David Aldrich Appointed as Director BOSTON GENERATING: Merger Deal Cues Moody's to Hold Ratings CABLEVISION SYSTEMS: Incurs $126.46 Million Net Loss for Year 2006 CALPINE CORPORATION: Can Seek $5 Billion Replacement DIP Financing CAPELLA HEALTHCARE: S&P Holds B Rating & Revises Outlook to Stable CENT CDO: S&P Rates $12.5 Mil. Class E Floating-Rate Notes at BB CHARLES DEWBERRY: Case Summary & 17 Largest Unsecured Creditors CHIQUITA BRANDS: Delays Annual Report Filing CLARENCE ARTIS: Case Summary & Four Largest Unsecured Creditors CMS ENERGY: Posts $90 Million Net Loss in Year Ended December 31 COMCAST CORP: Net Earnings Soar to $2.5 Billion in 2006 COMVERSE TECH: Launches Zero Yield Puttable Securities Offering CREDIT SUISSE: Moody's Holds Ba1 Rating on Class L Certificates CROWN CASTLE: Posts $41.89 Million Net Loss for Year Ended Dec. 31 DAIMLERCHRYSLER AG: Considers Sale of Chrysler Group's Finance Arm DORAL FINANCIAL: Declares Cash Dividend on 4 Series of Pref. Stock DYNEGY INC: Unit Launches New Senior Secured Credit Facility EFRAIN DEHARO: Case Summary & Eight Largest Unsecured Creditors EL PASO: Fitch Puts Issuer Default Rating at BB+ EQUISTAR CHEMICALS: Fitch Holds Ratings with Positive Outlook FELLOWS ENERGY: Restructures Convertible Debt Securities FIRST BANCORP: Settles Class Action Suit for $74.25 Million FORD MOTOR: Nears Deal to Sell Aston Martin Unit in Auction FREMONT GENERAL: To Exit Sub-Prime Lending Operations FREMONT GENERAL: Delays Filing of Form 10-K for Year Ended Dec. 31 FREMONT GENERAL: DBRS Downgrades Senior Loan's Rating to B (low) FREMONT GENERAL: Fitch Junks Issuer Default Rating; Retains Watch FREMONT GENERAL: S&P Lowers Rating and Retains Negative Watch FREMONT GENERAL: Moody's Downgrades Ratings and Retains Review FREMONT INVESTMENT: DBRS Cuts Senior Loan's Rating To B (high) FREMONT INVESTMENT: Moody's Puts Rating on Review & May Downgrade GABRIEL DEHARO: Case Summary & 11 Largest Unsecured Creditors GREAT ATLANTIC: Pathmark Purchase Prompts Moody's Ratings Review GS MORTGAGE: Moody's Ups Rating on Class K-PR Certificates to Ba3 GSAA HOME: Moody's Rates Class B-4 Certificates at Ba2 GSAA HOME: Moody's Rates Class B3 Certificates at Ba2 GULF COAST: Confirmation Hearing Scheduled on April 16 HALLMARK TECHNOLOGIES: Trustee Rejects Kattula's $8.8 Mil. Offer HAWKER BEECHCRAFT: Moody's Rates Proposed $1.85 Bil. Loan at Ba3 HAWKER BEECHCRAFT: High Debt Leverage Cues S&P's B+ Credit Rating HAWKS LANDING: Case Summary & Eight Largest Unsecured Creditors INEX PHARMA: Likely to Complete Tekmira Spinout on March 31 INNOVATIVE COMMUNICATION: Court Appoints Chapter 11 Trustee IRON MOUNTAIN: Moody's Rates Proposed CDN$175 Mil. Sr. Notes at B3 IRON MOUNTAIN: S&P Rates Proposed CDN$175 Million Sr. Notes at B JUAN DEHARO: Case Summary & Three Largest Unsecured Creditors LEVEL 3: S&P Rates Proposed $1.4 Billion Senior Secured Loan at B LODGENET ENT: Moody's Rates Proposed $450 Mil. Sr. Facility at Ba3 LUCKY WHITE: Case Summary & Seven Largest Unsecured Creditors LYONDELL CHEMICAL: Inorganic Biz Sale Cues Fitch to Hold Ratings MARTIN DEHARO: Case Summary & Two Largest Unsecured Creditors MAVERICK OIL: Sells Barnett Shale Interest for $22.5 Million METHANEX CORP: Board Declares Quarterly Cash Dividend MILLENNIUM CHEMICALS: Fitch Holds Ratings with Positive Outlook MIRIAN RODRIGUEZ: Case Summary & 16 Largest Unsecured Creditors MOORE MEDICAL: Wants Court Nod to Reject Executory Contracts NATURADE INC: Court Confirms Fifth Amended Reorganization Plan NEW CENTURY: Lenders Extend Annual Report Filing to March 15 NEW CENTURY: High Liquidity Prompts DBRS to Downgrade Rating NEW CENTURY: Moody's Cuts Servicer Rating and Retains Review NEW CENTURY: S&P Junks Rating and Retains Negative CreditWatch NEW CENTURY: S&P Puts Subprime Servicer Ranking on Negative Watch NOMURA ASSET: Moody's Rates Class M-10 Certificates at Ba1 NORTH AMERICAN: Earns $6.6 Million in Third Fiscal Quarter NORTHWEST AIRLINES: Pilots Picketing Today to Demand Fin'l Share OHIO CASUALTY: S&P Assigns Preliminary BB Preferred Stock Rating OMNI INSURANCE: A.M. Best Withdraws B+ Financial Strength Rating OMNITECH CONSULTANT: Creditors Accept BIA Proposal PAIVIS CORP: Jaspers+Hall PC Raises Going Concern Doubt PATHMARK STORES: Merger Deal Cues Moody's to Review Ratings PER-SE TECHNOLOGIES: Debt Repayment Cues S&P to Withdraw Ratings REGAL ENT: Fitch Says Special Dividend Plan Won't Affect Ratings RICHARD LEWANDOWSKI: Case Summary & 14 Largest Unsecured Creditors RISK ASSURANCE: A.M. Best Puts B+ FSR Under Negative Review RURAL/METRO CORP: Receives Wells Fargo's Notice of Default SABRE INC: S&P Rates Proposed $3.215 Billion Senior Facility at B+ SANDISK CORP.: Earns $198.89 Million in Fiscal Year 2006 STRUCTURED ASSET: Fitch Rates $4.9 Mil. Class B1 Certs. at BB+ TEC FOODS: Wants Heller Draper as Special Counsel TIMKEN COMPANY: Earns $222.53 Million in Year Ended 2006 TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope TRIPOS INC: ISS Urges Shareholders to Vote for Liquidation Plan TXU CORP: Up to $5.4 Million in Investor Assets Freezed * Crowell & Moring Adds Nine Lawyers to New York Office * Hunton & Williams Taps P. Bruening as Deputy Executive Director * Upcoming Meetings, Conferences and Seminars ********* ADVANCED MICRO: May Not Meet First Quarter 2007 Revenue Target -------------------------------------------------------------- Advanced Micro Devices Inc. disclosed Monday that it is likely to miss its revenue guidance for the first quarter of 2007. In a regulatory filing with the U.S. Securities and Exchange Commission, the company had said it expected revenues for the first quarter in the range of $1.6 billion to $1.7 billion. Based in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- designs and produces innovative microprocessor and graphics and media solutions for the computer, communications, and consumer electronics industries. The company has corporate locations in Sunnyvale, California, Austin, Texas, and Markham, Ontario, and global operations and manufacturing facilities in the United States, Europe, Japan, and Asia. * * * The company's 7-3/4% Senior Notes due Nov. 1, 2012, carries Standard & Poor's B+ rating, Moody's Ba3 rating and Fitch's BB- rating. ALM MEDIA: Senior Facilities Add-On Cues Moody's to Hold B3 Rating ------------------------------------------------------------------ Moody's Investors Service affirmed ALM Media, Inc.'s Corporate Family rating following the company's announcement that it plans to issue $63 million of unrated super - holding company debt and $12 million of add-on senior secured credit facilities. Details of the rating action are: Ratings affirmed: * $70 million senior secured first lien revolving credit facility, due 2010 -- B1, LGD2, 27% * $218 million senior secured first lien term loan facility, due 2010 -- B1, LGD2, 27% * Corporate Family rating -- B3 * PDR -- B3 Ratings assigned: * $2 million add-on senior secured first lien term loan facility, due 2010 - B1, LGD2, 27% * $10 million add-on senior secured second lien term loan * facility, due 2011 -- Caa1, LGD5, 73% Rating upgraded: * $97 million senior secured second lien term loan facility, due 2011 -- to Caa1, LGD5, 73% from Caa2, LGD5, 84% The rating outlook is stable. The rating affirmation is largely based upon the company's expectation that despite the significantly increased debt burden resulting from $75 million in incremental debt, improved EBITDA performance will return the company's leverage to around its current level by the end of 2008. The ratings are supported by the defensibility of ALM's market niche, the reputation and loyal readership of its titles, including the "American Lawyer", the diversification of its customer base and a recent improvement in advertising spending by the legal sector. ALM's ratings incorporate the company's persistently high leverage profile, the dependence of its business on the US legal services market, its vulnerability to legal advertising spending, its acquisitiveness, and its willingness to fund dividends from the proceeds of incremental debt. The stable outlook indicates Moody's expectation of steady organic top line growth, margin improvement and a greater income contribution from acquisitions, trade shows, information services and Internet business activities. ALM plans to largely use the proceeds of the proposed incremental $75 million of debt to make a dividend to its parent. Management estimates that pro-forma for the incremental debt, ALM's consolidated debt will increase to 9.1 times EBITDA for fiscal 2006, returning to a low seven times range by the end of fiscal 2008, largely through: (1) higher than expected organic growth, (2) the acquisition of Strategic Research Institute, (3) a full year of business under the content sharing agreement with Thomson West Publishing, and (4) strategic initiatives, including those relating to its legal directory and online products. The upgrade of the second lien term loan results largely from the proposed issuance of super - holding company debt which provides an additional component of junior capital to the company's capital structure. Moody's has not assigned a rating to the proposed superholdco debt, nor does it rate the intermediate holding company's perpetual preferred stock or senior notes. The proposed superholdco PIK notes will turn cash pay following the maturity of the company's senior secured debt in 2011. Headquartered in New York City, New York, ALM Media is a leading integrated media company, focused on the legal sector. The company, which is wholly owned by U.S. Equity Partners, L. P., (an investment fund sponsored by Wasserstein & Co) reported fiscal 2006 sales of $190 million. ALM MEDIA: Bank Facility Increase Cues S&P to Hold B- Rating ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B-' corporate credit rating on ALM Media Holdings Inc. and its operating subsidiary, ALM Media Inc., which are analyzed on a consolidated basis. The outlook is stable. The affirmation followed the announcement that the company will increase its operating subsidiary's bank facility by $12 million and issue $63 million in 13% pay-in-kind senior subordinated notes due 2015, at a super holding company level. At the same time, S&P affirmed the loan rating and raised the recovery rating on the operating subsidiary's first-lien term loan due 2010, which it increased by $2 million. The 'B-' loan rating is at the same level as the corporate credit rating. In raising the recovery rating to '2' from '3', S&P indicated its expectation of substantial (80%-100%) recovery of principal in the event of a payment default. The subsidiary also added $10 million to its second-lien term loan due 2011. S&P affirmed the loan rating on this facility at 'CCC', two notches lower than the corporate credit rating. S&P also affirmed the recovery rating at '5', indicating our expectation of negligible (0%-25%) recovery of principal in the event of a payment default. The company will use proceeds from the proposed transaction to pay an approximately $74.5 million special dividend to its common stockholder, U.S. Equity Partners L.P., a private equity fund sponsored by Wasserstein & Co. Pro forma for the transaction, the New York-based publisher of national and regional magazines and newspapers for the legal profession had total debt (including total holding company senior notes) of $440.5 million as of Dec. 31, 2006. "The ratings on ALM Media reflect the company's high leverage, narrow business focus with uncertain long-term growth prospects, modest discretionary cash flow, and prospects for rising cash interest payments in 2009 and 2011," said Standard & Poor's credit analyst Michael Altberg. "These risks outweigh ALM Media's established position in its publishing niche catering to legal professionals." The company targets legal professionals through its national and regional magazines and newspapers, Web sites, and other related businesses. AMERICAN AIRLINES: Earns $164 Million in Year Ended December 31 --------------------------------------------------------------- American Airlines Inc. reported net earnings of $164 million on total operating revenues of $22.49 billion for the year ended Dec. 31, 2006, compared with a net loss of $892 million on total operating revenues of $20.657 billion in 2005. The company's 2006 earnings were due in part to the company's success in implementing fare increases to partially offset higher fuel prices. In 2006, mainline passenger load factor increased 1.5 points year-over-year to 80.1 percent and mainline passenger revenue yield increased 6.7 percent year-over-year. Offsetting these fare increases, the company's 2006 fuel expense increased $704 million compared to 2005 despite a decrease in mainline capacity of more than one percent. In 2006, the price of a gallon of jet fuel was 129.5 percent higher than in 2003 and the company's fuel expense was $3.2 billion higher in 2006 than in 2003 on a mainline capacity increase of approximately 5 percent. At Dec. 31, 2006, the company's balance sheet showed $25.85 billion in total assets and $26.916 billion in total liabilities, resulting in a $1.066 billion total stockholders' deficit. The company's balance sheet at Dec. 31, 2006, also showed strained liquidity with $6.75 billion in total current assets, available to pay $9.117 billion in total current liabilities. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1abc Cash Flow At Dec. 31, 2006, the company had $4.6 billion in unrestricted cash and short-term investments and $468 million in restricted cash and short-term investments. The company's cash flow from operating activities improved in 2006. Net cash provided by operating activities during the year ended Dec. 31, 2006 was $1.6 billion, an increase of $865 million over 2005, due primarily to an improved revenue environment and the impact of certain company initiatives to improve revenue. Capital expenditures during 2006 were $508 million and primarily included the acquisition of two Boeing 777-200ER aircraft and the cost of improvements at the John F. Kennedy International (JFK) Airport. Substantially all of the company's construction costs at JFK are being reimbursed through a fund established from a previous financing transaction. About American Airlines American Airlines Inc. (NYSE: AMR) -- http://www.aa.com/-- is the world's largest airline. American, American Eagle and the AmericanConnection(R) airlines serve 250 cities in over 40 countries with more than 4,000 daily flights. The combined network fleet numbers more than 1,000 aircraft. American Airlines is a founding member of the oneworld(R) Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. American Airlines Inc. and American Eagle Airlines Inc. are subsidiaries of AMR Corporation. * * * As reported in the Troubled Company Reporter on Nov. 21, 2006, Moody's Investors Service affirmed its 'B3' Corporate Family rating for AMR Corp. and its subsidiary, American Airlines Inc. AMERIQUEST MORTGAGE: S&P Junks Rating on Class M-4 Loans -------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on class M-2 from Ameriquest Mortgage Securities Inc.'s series 2003-2 to 'A' from 'A+' and placed it on CreditWatch with negative implications. At the same time, the ratings on class M-3 from series 2003-2 and on class M-6 from series 2003-6 were lowered and remain on CreditWatch, where they were originally placed with negative implications on Aug. 29, 2006, and Nov. 29, 2006, respectively. In addition, the rating on class M-4 from series 2003-2 was lowered to 'CCC' from 'B' and removed from CreditWatch, where it was originally placed with negative implications on Aug. 29, 2006. Lastly, the ratings on the one remaining class from series 2003-2 and on the six remaining classes from series 2003-6 were affirmed. The lowered ratings and CreditWatch placements reflect the deterioration of credit support as a result of losses outpacing excess interest. Cumulative losses for series 2003-2 are 1.89% of the original pool balance ($7.56 million), while severe delinquencies (90-plus-days, foreclosure, and REO) constitute 17.93% of the current pool balance ($40.86 million). These continuous realized losses have depleted overcollateralization for series 2003-2 to $325,585, down from its target of $2.0 million. Cumulative losses for series 2003-6 total 1.52% of the original pool balance ($24.36 million), while severe delinquencies constitute 21.68% of the current pool balance ($235.96 million, or 14.75%). The rating on class M-4 from series 2003-2 was removed from CreditWatch because it was lowered to 'CCC'. According to Standard & Poor's surveillance practices, classes of certificates or notes from RMBS transactions with ratings lower than 'B-' are no longer eligible to be on CreditWatch negative. Standard & Poor's will continue to closely monitor the performance of the classes with ratings on CreditWatch negative. If losses decline to a point at which they no longer outpace excess interest, and the level of overcollateralization has not been further eroded, we will affirm the ratings and remove them from CreditWatch. Conversely, if losses continue to outpace excess interest, we will take further negative rating actions on these classes. The collateral for series 2003-2 and 2003-6 consists of conventional, one- to four-family, adjustable- and fixed-rate mortgage loans secured by first liens on residential properties. Rating Lowered and Placed on Creditwatch Negative Ameriquest Mortgage Securities Inc. Rating ------ Series Class To From ------ ----- -- ----- 2003-2 M-2 A/Watch Neg A+ Ratings Lowered and Remaining on Creditwatch Negative Ameriquest Mortgage Securities Inc. Rating ------ Series Class To From ------ ----- -- ----- 2003-2 M-3 B/Watch Neg BB/Watch Neg 2003-6 M-6 B/Watch Neg BB-/Watch Neg Rating Lowered and Removed from Creditwatch Negative Ameriquest Mortgage Securities Inc. Rating ------ Series Class To From ------ ----- -- ----- 2003-2 M-4 CCC B/Watch Neg Ratings Affirmed Ameriquest Mortgage Securities Inc. Series Class Rating ------ ----- ------ 2003-2 M-1 AA+ 2003-6 AF-4 AAA 2003-6 M-1 AA 2003-6 M-2 A 2003-6 M-3 A- 2003-6 M-4 BBB+ 2003-6 M-5 BBB ANR PIPELINE: S&P Removes Positive Watch and Upgrades Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on ANR Pipeline Co., including the long-term corporate credit rating to 'A-' from 'B+', following the completion of the purchase of ANR by TransCanada PipeLines Ltd. (TransCanada; A-/Negative/--). The ratings on ANR reflect the consolidated rating on TransCanada. At the same time, the ratings on ANR were removed from CreditWatch with positive implications where they were placed Dec. 22, 2006. The outlook is negative and reflects the outlook on TransCanada. "Following the recent sale of ANR to TransCanada it will become a 100%-owned subsidiary of TransCanada," said Standard & Poor's credit analyst Kenton Freitag. "The good stand-alone credit quality of ANR, combined with our view that ANR's business will remain strategically important to TransCanada, underpins our approach to equalizing the ratings on ANR with those on TransCanada," Mr. Freitag added. The ratings on Calgary, Alta.-based TransCanada reflect the consolidated business risk and financial risk profiles of its core subsidiaries and investments. These subsidiaries are mainly active in either gas pipeline or energy services, accounting for about 85% and 15%, respectively, of TransCanada's operating income. TransCanada's Canadian pipeline system is the largest in North America. The credit profiles of the pipeline and the energy generation businesses are currently about equivalent, notwithstanding the much larger size of the pipeline business. With the riskier power business having a better financial risk profile and the more stable pipeline business having a comparatively weaker financial risk profile, the balancing of consolidated business risk with an offsetting consolidated financial risk profile remains fundamental to the ratings on TransCanada. TransCanada's business risk profile reflects the market dominance of its wholly owned pipeline systems, its investments in several large North American natural gas pipelines, and its growing energy business. Standard & Poor's expects TransCanada's competitive advantage as the largest Canadian incumbent natural gas transportation system should keep its business risk profile relatively unchanged in the near term. The negative outlook reflects Standard & Poor's concerns regarding the absence of meaningful excess liquidity and reduced financial cushion during the initial years of the Bruce Power restart project. Based on current capital spending forecasts, near-term cash flows should be sufficient to meet TransCanada's committed capital spending requirements. Nevertheless, there is no room at the current rating level for any material debt financing of any capital project that does not have an immediate earnings or cash flow increment. TransCanada's liquidity and financial flexibility will be somewhat strained from 2006 to 2008. To keep the current ratings, Standard & Poor's expects TransCanada to maintain its financial metrics at 2006 levels as it proceeds with its pipeline and power development projects. If TransCanada's near-term capital spending is adequately met with internal capital resources, and its financial risk profile does not deteriorate, the outlook will be revised to stable. Alternatively, if TransCanada's cash flow protection measures deteriorate to pre- 2004 levels, with no perceived opportunity for improvement, the ratings will be lowered. ARIAS ACQUISITIONS: Moody's Cuts Ratings & Says Outlook is Neg. --------------------------------------------------------------- Moody's Investors Service has downgraded the corporate family rating of Arias Acquisitions, Inc. to B3 from B2. Moody's has also downgraded the company's senior secured bank credit facilities to B3 from B2, and its senior subordinated notes to Caa2 from Caa1. The rating outlook has changed to negative from stable. Arias is an intermediate holding company owned by HBW Holdings, Inc., whose subsidiaries comprise a leading US provider of home warranty products. The rating downgrade reflects HBW's weak operating performance over the past year, driven mainly by: (i) financial problems at an unaffiliated insurance company with whom HBW placed construction general liability coverage on behalf of home builders, and (ii) a general softening of the US housing market. HBW has found a more creditworthy insurance carrier to write the CGL business, but the soft housing market may persist through much or all of 2007, according to Moody's. Arias presently seeks to amend its loan agreements to ease its financial covenants. Moody's believes that, absent such an amendment, Arias would likely trip a leverage covenant in the near term. Failure to amend the loan agreements could lead to a further downgrade of the Arias ratings. On the other hand, a successful amendment of the loan agreements along with favorable near-term operating performance could lead to a stable rating outlook. Moody's negative rating outlook reflects HBW's aggressive financial leverage and its limited leeway under financial covenants. The rating agency also cited HBW's exposure to the cyclical US housing market as a rating concern, while acknowledging that HBW benefits from its strong market position in the home warranty business and its extensive relationships with home builders. Moody's cited that these factors could lead to a stable outlook on the Arias ratings: (i) successful renegotiation of the loan agreements, (ii) adjusted total debt-to-EBITDA ratio consistently below 6.5 times, and (iii) adjusted EBITDA coverage of total interest consistently above 1.25 times. Moody's cited that these factors could lead to a further downgrade: (i) breaching of financial covenants, (ii) adjusted total debt-to-EBITDA ratio exceeding 7.0 times, and (iii) adjusted EBITDA coverage of total interest below 1.0 times. The last rating action on Arias took place on July 14, 2005, when Moody's assigned a B2 corporate family rating. HBW, based in Denver, Colorado, is a leading US provider of new home warranties and related products. The company is majority- owned by private equity firm Brera Capital Partners, LLC. HBW generated estimated revenues of $179 million in 2006. ASTORIA GENERATING: Merger Deal Cues Moody's to Hold Ratings ------------------------------------------------------------ Moody's Investors Service has affirmed the ratings for both Astoria Generating Company Acquisitions, LLC and Boston Generating, LLC. The affirmation applies to approximately $771 million of secured first lien (rated B1) and second lien (rated B3) credit facilities for Astoria and for approximately $1,800 million of secured first lien (rated B1) and second lien (rated B3) credit facilities for Boston Gen. The rating outlook for both entities remains stable. The ratings affirmation follows the recent announcement that the parent holding companies for both project subsidiaries have agreed to merge in a stock-for-stock transaction, the terms of which do not include the issuance of any material additional debt. The rating affirmation considers the fact that the existing capital structures of both Astoria and Boston Gen are expected to remain unchanged following the merger and that both companies will continue to operate as separate standalone subsidiaries. The new pro-forma combined company will be called US Power Generating Company (US Power) and will be headquartered in New York. Upon completion of the merger, the current members of EBG Holdings LLC, the parent of Boston Gen, will own 54% of US Power, while the current shareholders of Astoria Generating Company Holdings, the parent of Astoria, will own the remaining 46%. The transaction is expected to close in mid-2007 following the approval of certain regulatory authorities, including the New York State Public Service Commission. "Moody's observes that each project entity is expected to remain separate legal subsidiaries and that the merger will not have any implications on the terms and conditions of the existing credit facilities" says A.J. Sabatelle, Vice President and Senior Credit Officer at Moody's. "The financial covenants, security and collateral packages and mandatory prepayment conditions are expected to remain unchanged." The pro-forma combined company will own and operate eight generation facilities with a total capacity of approximately 5 GW's of generation, all of which is located within the capacity and transmission constrained Boston and New York markets. "Both portfolios appear to be critical assets for in-city reliability purposes," says Jim Hempstead, Vice President and Senior Credit Officer at Moody's. Moody's observes that the New York and New England regional transmission markets represent two of the more mature, deregulated electricity markets in the US and that the existence of a capacity market in both markets along with existing hedged positions help to support relatively stable near-term cash flows. Additionally, Moody's believes that reserve margins in Boston and New York City are expected to continue to decline over time, creating an opportunity for increased operating margins. Astoria Generating Company owns and operates approximately 2.3 GW's of oil and natural gas fired generation in New York City. Boston Generating, LLC owns and operates approximately 3.0 GW's of oil and natural gas fired generation in Boston. AVNET INC: Prices Offering of 5-7/8% Senior Notes ------------------------------------------------- Avnet, Inc. prices its offering of $300 million aggregate principal amount of 5-7/8% Notes due 2014 in a registered offering. Upon pricing, the offering size was increased from the $250 million aggregate principal amount, which was offered on March 2, 2007. The offering is expected to close on today, March 7, 2007, subject to customary closing conditions. Avnet intends to use all of the net proceeds to repay amounts outstanding under its revolving credit facility and its accounts receivable securitization program. The offering is lead-managed by Banc of America Securities LLC and Credit Suisse Securities (USA) LLC. A prospectus relating to the offering may be obtained from: Banc of America Securities LLC Telephone 1-800-294-1322 or Credit Suisse Securities (USA) LLC Prospectus Delivery Department 11 Madison Avenue, Floor 2B New York, NY 10010 1-800-221-1037 Headquartered in Phoenix, Arizona, Avnet, Inc. (NYSE:AVT) -- http://www.avnet.com/-- distributes electronic components and computer products, primarily for industrial customers. It has operations in these Asia-Pacific countries: Indonesia, Australia, China, Hong Kong, India, Japan, Malaysia, New Zealand, Philippines and Singapore. * * * As reported in the Troubled Company Reporter on March 5, 2007, Moody's Investors Service affirmed the Ba1 corporate family and long-term debt ratings of Avnet, Inc. and revised the outlook to positive from stable. BAUSCH & LOMB: Defers Filing of 2006 Annual Report in Form 10-K --------------------------------------------------------------- Bausch & Lomb disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that it delayed the filing of its Annual Report on Form 10-K for 2006. The report was required to be filed on Feb. 28, 2007. The company said that its inability to file is principally due to the considerable time and effort that it had to devote to completing the recently completed financial restatement and filing of its Form 10-K for 2005. This has prevented the company from being able to timely complete its financial close process for 2006. The company said that it expects to file the 2006 10-K by April 30, 2007. The company filed its annual report on Form 10-K for the year ended Dec. 31, 2005, with the SEC on Feb. 7, 2007. The company was unable to timely file its 2005 Annual Report due to: -- ongoing independent investigations conducted by the Board of Directors' Audit Committee; -- expanded year-end procedures that were not complete; -- expanded procedures with respect to the accounting for income taxes that were not complete; and -- continued efforts to complete the company's assessment of its internal control over financial reporting. As a result of the Audit Committee's investigations and the expanded procedures, the company identified errors made in the application of generally accepted accounting principles that impacted previously reported financial statements. Consequently, management determined that it should restate its previously issued: -- consolidated financial statements for fiscal years ended Dec. 27, 2003, and Dec. 25, 2004; -- financial information for the fiscal years ended 2001 and 2002 (including a cumulative increase to 2001 beginning retained earnings of $34,000,000); and -- financial reports for the first and second quarters of 2005. The company included the restated financial statements for the years 2003 and 2004 in the 2005 annual report. 2005 Financials For the year ended Dec. 31, 2005, the company reported $19,200,000 of net income on $2,353,800,000 of net sales, compared with $153,900,000 of net income on $2,233,500,000 of net sales for the fiscal year ended Dec. 25, 2004. At Dec. 31, 2005, the company had $3,416,400,000 in total assets, $2,108,000,000 in total liabilities, and $1,283,900,000 in total shareholders' equity. A full-text copy of the company's 2005 annual report is available for free at http://ResearchArchives.com/t/s?19c0 Headquartered in Rochester, New York, Bausch & Lomb Inc. -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico * * * On Feb. 2, 2007, Moody's Investors Service downgraded Bausch & Lomb Inc.'s senior unsecured debt to Ba1 and continues to review all ratings for possible downgrade. Moody's also assigned the company a Ba1 Corporate Family Rating. BECKMAN COULTER: Earns $186.9 Million in Year Ended December 31 --------------------------------------------------------------- Beckman Coulter reported net earnings of $186.9 million for the year ended Dec. 31, 2006, compared with net earnings of $150.6 million for 2005. Revenue for 2006 was $2.528 billion, up 3.5% compared to revenues of $2.443 billion in 2005. Gross profit margin for 2006 was 47.3%, up 120 basis points over prior year, impacted favorably by a shift in revenue mix to more consumables sales and leverage within the service organization. Operating income increased to $262.9 million in 2006, from $205.7 million in 2005. Non-operating expense of $47.7 million in 2006 included costs of about $5 million for the early redemption of the company's 2008 notes and $2.7 million for the early redemption of $56 million of the company's 2026 debentures. Non-operating expense in 2005 was $40.1 million. For the fourth quarter of 2006, Beckman Coulter Inc. reported net earnings of $62.3 million, compared to net earnings of $17.8 million for the same period last year. Reported revenue was $712 million, up 8.6% compared to revenue of $655.5 million in the fourth quarter of 2005. Scott Garrett, president and chief executive officer, said, "The fourth quarter of 2006 marked the return of meaningful revenue comparability for the first time since we changed our leasing policy, which spreads revenue recognition over the life of the lease, typically five years. As predicted, the results demonstrate the vitality of our business. Gross margin expanded about 180 basis points to 46.9% of revenue due primarily to efficiencies gained in the service organization. Operating expense was $232.8 million, down $57 million compared to prior year quarter. This includes $5.3 million in incremental non-cash stock option expense and $2.6 million in charges to conclude the "one company" restructuring begun in the third quarter 2005. The decrease in operating expense was due to savings from restructuring activities and a change in the timing of accruals for the company's non-sales incentive compensation plans. Operating income for the quarter was $100.8 million including the $2.6 million in restructuring charges. Non-operating expense was $16.9 million including about $5 million for the early redemption of the company's 2008 notes. At Dec. 31, 2006, the company's balance sheet showed $3.291 billion in total assets, $2.137 billion in total liabilities, and $1.154 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1ac6 About Beckman Coulter Based in Fullerton, California, Beckman Coulter Inc. (NYSE: BEC) -- http://www.beckmancoulter.com/-- develops, manufactures and markets products that simplify, automate and innovate complex biomedical tests. More than 200,000 Beckman Coulter systems operate in laboratories around the world supplying critical information for improving patient health and reducing the cost of care. * * * As reported in the Troubled Company Reporter on Oct. 19, 2006, Moody's Investors Service affirmed Beckman Coulter's ratings on its $500 Million Universal Shelf Registration (Senior and Subordinate) -- (P) Baa3/(P) Ba1. The outlook on Beckman's ratings remains stable. BELDEN CDT: David Aldrich Appointed as Director ----------------------------------------------- Belden CDT Inc. reported that on Feb. 22, 2007, its board of directors appointed David J. Aldrich to the Board. Since April 2000, Mr. Aldrich, 49, has served as President, Chief Executive Officer and Director of Skyworks Solutions, Inc., a wireless semiconductor company focused on radio frequency and complete semiconductor system solutions for mobile communication applications. Headquartered in St. Louis, Missouri, Belden CDT Inc. (NYSE:BDC) -- http://www.belden.com/-- designs, manufactures and markets high-speed electronic cables, connectivity products and related items for the specialty electronics and data networking markets. The Company operates in two segments: the Electronics segment and the Networking segment. The Electronics segment designs, manufactures and markets metallic and fiber optic cable products with primarily industrial, video/sound/security and transportation/defense applications. These products are sold principally through distributors or directly to systems integrators and original equipment manufacturers. The Networking segment designs, manufactures and markets metallic cable, fiber optic cable, connectivity and other non-cable products primarily with networking/communications applications. These products are sold principally through distributors or directly to systems integrators, OEMs and large telecommunications companies. * * * As reported in yesterday's Troubled Company Reporter, Moody's Investors Service affirmed Belden CDT Inc.'s Ba2 corporate family rating and changed the outlook to positive. Moody's also assigned instrument ratings of Baa3 to the company's recently upsized $225 million senior secured revolving credit facility and Ba2 to the proposed $350 million subordinated note issuance. At the same time, Standard & Poor's Rating Services raised its corporate credit rating on Belden CDT to 'BB+' from 'BB-', and upgraded the rating on the $110 million convertible debentures to 'BB-' from 'B'. BOSTON GENERATING: Merger Deal Cues Moody's to Hold Ratings ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings for both Astoria Generating Company Acquisitions, LLC and Boston Generating, LLC. The affirmation applies to approximately $771 million of secured first lien (rated B1) and second lien (rated B3) credit facilities for Astoria and for approximately $1,800 million of secured first lien (rated B1) and second lien (rated B3) credit facilities for Boston Gen. The rating outlook for both entities remains stable. The ratings affirmation follows the recent announcement that the parent holding companies for both project subsidiaries have agreed to merge in a stock-for-stock transaction, the terms of which do not include the issuance of any material additional debt. The rating affirmation considers the fact that the existing capital structures of both Astoria and Boston Gen are expected to remain unchanged following the merger and that both companies will continue to operate as separate standalone subsidiaries. The new pro-forma combined company will be called US Power Generating Company (US Power) and will be headquartered in New York. Upon completion of the merger, the current members of EBG Holdings LLC, the parent of Boston Gen, will own 54% of US Power, while the current shareholders of Astoria Generating Company Holdings, the parent of Astoria, will own the remaining 46%. The transaction is expected to close in mid-2007 following the approval of certain regulatory authorities, including the New York State Public Service Commission. "Moody's observes that each project entity is expected to remain separate legal subsidiaries and that the merger will not have any implications on the terms and conditions of the existing credit facilities" says A.J. Sabatelle, Vice President and Senior Credit Officer at Moody's. "The financial covenants, security and collateral packages and mandatory prepayment conditions are expected to remain unchanged." The pro-forma combined company will own and operate eight generation facilities with a total capacity of approximately 5 GW's of generation, all of which is located within the capacity and transmission constrained Boston and New York markets. "Both portfolios appear to be critical assets for in-city reliability purposes," says Jim Hempstead, Vice President and Senior Credit Officer at Moody's. Moody's observes that the New York and New England regional transmission markets represent two of the more mature, deregulated electricity markets in the US and that the existence of a capacity market in both markets along with existing hedged positions help to support relatively stable near-term cash flows. Additionally, Moody's believes that reserve margins in Boston and New York City are expected to continue to decline over time, creating an opportunity for increased operating margins. Astoria Generating Company owns and operates approximately 2.3 GW's of oil and natural gas fired generation in New York City. Boston Generating, LLC owns and operates approximately 3.0 GW's of oil and natural gas fired generation in Boston. CABLEVISION SYSTEMS: Incurs $126.46 Million Net Loss for Year 2006 ------------------------------------------------------------------ Cablevision Systems Corp. reported net revenues for the year ended Dec. 31, 2006, of $5,927,462,000, an increase of $754,984,000 compared to revenues of $5,172,478,000 for the prior year. Net loss for the year 2006 was $126,465,000, compared to a net income of $89,320,000 for the previous year. Operating expenses for 2006 were $5,313,486,000, up from $4,671,859 for 2005. The company had an operating income of $613,976,000 for the year ended Dec. 31, 2006, as compared with $500,619,000 for 2005. Net cash provided by operating activities amounted to $961,642,000 for the year ended Dec. 31, 2006, as compared with $923,044,000 a year earlier. Net cash used in investing activities for the year ended Dec. 31, 2006 was $873,173,000, as compared with $763,600,000 a year ago. Net cash used in financing activities amounted to $16,759,000 for 2006, as compared with $644,594,000 for 2005. The net effect of discontinued operations on cash and cash equivalents amounted to a cash inflow of $79,656,000 and $110,976,000 for the years ended Dec. 31, 2006 and 2005, respectively. The company's contractual obligations as of Dec. 31, 2006, totaled $19,227,322,000, consisting $6,127,561,000 in off-balance sheet arrangements and $13,099,761,000 in contractual obligations reflected on the balance sheet. As of Dec. 31, 2006, the company listed $9,844,857,000 in total assets and $4,505,604,000 in total liabilities, resulting in a $5,339,253,000 stockholders' deficit. The company's Dec. 31 balance sheet also strained liquidity with $1,667,447,000 in total current assets and $2,430,698,000 in total current liabilities. The balance sheet further showed accumulated deficit in the amount of $4,967,244,000. Business Segments Results Net revenues of the Telecommunications Services Segment for the year ended Dec. 31, 2006, increased $630,942,000, to $4,237,707,000 as compared to revenues of $3,606,765,000 for the prior year. The Rainbow Segment had net revenues of $885,986,000 for 2006, as compared with $$825,561,000 for 2005, showing an increase of $60,425,000. The company's Madison Square Garden Segment had net revenues of $854,040,000 for 2005, up by $49,645,000, from $804,395,000 in 2005. CSC Holdings, Inc. Cablevision has no operations independent of its subsidiaries. Its outstanding securities consist of Cablevision NY Group Class A and Cablevision NY Group Class B common stock and $1,500,000,000 of debt securities. Funding for the debt service requirements of our debt securities is provided by our subsidiaries operations, principally CSC Holdings, as permitted by the covenants governing CSC Holdings' credit agreements and public debt securities. The statements of operations results of CSC Holdings are identical to the statement of operations results of Cablevision, except for: -- interest expense of $132,784,000, $124,498,000 and $85,048,000 for the years ended Dec. 31, 2006, 2005 and 2004, respectively, relating to $1,500,000,000 of Cablevision senior notes issued in April 2004 included in Cablevision's consolidated statements of operations; -- interest income of $3,958,000 and $89,000 for the years ended Dec. 31, 2006 and 2005, respectively, related to cash held at Cablevision; -- miscellaneous expenses of $177,109,000 included in Cablevision's consolidated statement of operations for the year ended Dec. 31, 2005; and -- income tax benefit of $52,831,000, $50,993,000 and $35,125,000 for the years ended Dec. 31, 2006, 2005 and 2004, respectively. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1ab3. About Cablevision Systems Corp. Headquartered in Bethpage, New York, Cablevision Systems Corp., (NYSE: CVC) -- http://www.cablevision.com/-- operates as a media, entertainment and telecommunications company in the U.S. It has three segments, Telecommunications Services, Rainbow, and Madison Square Garden. Telecommunications Services operates in cable television business. The Rainbow segment consists of its interests in national programming services, regional programming businesses, regional sports and news network business, and local advertising sales representation business. The Madison Square Garden segment owns and operates professional sports teams, as well as the MSG Networks sports programming business, and an entertainment business. It owns programming assets through its Rainbow National Services LLC subsidiary, including American Movie Classics, WE tv and Independent Film Channel. CALPINE CORPORATION: Can Seek $5 Billion Replacement DIP Financing ------------------------------------------------------------------ Calpine Corporation has received from the U.S. Bankruptcy Court for the Southern District of New York a written opinion that will allow the company to proceed with its plans for a $5 billion replacement debtor-in-possession credit facility. If the company is successful in completing this refinancing, the replacement DIP facility will be used: * to refinance the company's existing $2 billion DIP financing; * to repay approximately $2.5 billion of secured debt at Calpine Generating Company, LLC, one of Calpine's largest operating subsidiaries; and * for working capital and other general corporate purposes. "Moving forward with this refinancing is a major milestone in Calpine's restructuring program that will help us achieve our strategic goals," Robert P. May, Calpine's Chief Executive Officer, stated. "With this replacement DIP facility, Calpine will continue to advance its plans to significantly reduce costs and simplify the company's capital structure. In addition, this proposed financing will provide Calpine the potential opportunity to put in place an attractive exit financing to help ensure that Calpine emerges from Chapter 11 as a profitable and competitive power company positioned for future growth. We remain committed to moving through our restructuring as quickly as possible, and I am encouraged by the speed with which, working with our stakeholders, we have initiated this proposed financing." Credit Suisse, Goldman Sachs, JPMorgan and Deutsche Bank will act as co-lead arrangers for Calpine's replacement DIP facility. This proposed new facility is expected to close within the next 30 days and will consist of: -- a $4 billion senior secured term loan; -- a $1 billion senior secured revolving credit facility; -- a $2 billion expansion option; -- the ability to provide liens to counterparties to enhance Calpine's hedging program; and -- a rollover option that allows, but does not obligate, Calpine to convert the Replacement DIP into an exit financing. Upon completion, the replacement DIP facility will remain in place until the earlier of an effective Plan of Reorganization or the second anniversary of the closing date of the replacement DIP facility. If the Replacement DIP Facility is converted to an exit financing, the final maturity will be seven years from the closing date of the Replacement DIP Facility. The replacement DIP facility will be secured by substantially all of the assets, which secure the existing $2 billion DIP facility, liens on all of Calpine's unencumbered assets, and junior liens on all encumbered assets of Calpine and its debtor subsidiaries. The Court's written opinion also stated that the CalGen lenders have an unsecured claim for an amount that is presently estimated as approximately $76 million. About Calpine Corporation 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 previously produced a portion of its fuel consumption requirements from its own natural gas reserves. However, in July 2005, the company sold substantially all of its remaining domestic oil and gas assets to Rosetta Resources Inc. 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. The Debtors' exclusive period to file chapter 11 plan of reorganization expires on June 20, 2007. CAPELLA HEALTHCARE: S&P Holds B Rating & Revises Outlook to Stable ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Capella Healthcare Inc. and revised the outlook to stable from negative. At the same time, S&P affirmed the bank loan and recovery ratings on the company's first-lien bank loan and the bank loan rating on its second-lien loan, while lowering the recovery rating on the second-lien loan to '5' from '4'. The actions follow the company's announcement that it is increasing its first-lien term loan by $64 million and its second- lien term loan by $24 million. It will be used to help fund the acquisition of Muskogee Regional Medical Center in Oklahoma. The outlook revision reflects Standard & Poor's expectation of improving operating performance aided by a pending hospital acquisition. An equity infusion by Capella's financial sponsor will also help fund the $120 million transaction, reinforcing prospects for extension of a financial policy consistent with the current rating. The low-speculative-grade ratings on Franklin, Tenn.-based Capella Healthcare Inc., which was formed in April 2005, reflect the numerous risks that the company's experienced management team faces in operating a small start-up hospital company with a short record as an independent entity. Capella's small, undiversified portfolio of only four hospitals had been relatively reliant on one facility for about half of its EBITDA. The pending addition of Muskogee Regional Medical Center in Oklahoma may lessen this reliance to about one-third. In fact, Muskogee will become the company's largest single source of revenue, but not its most profitable. However, the historical underperformance of Muskogee, the still-small undiversified nature of a portfolio of only five hospitals, and Capella's generally weak admissions trend reflect a still-vulnerable business risk profile consistent with the rating category. Patient volume, which has declined at each of Capella's facilities over the past couple of years, has been weaker than that of its peer companies. CENT CDO: S&P Rates $12.5 Mil. Class E Floating-Rate Notes at BB ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Cent CDO 14 Ltd./Cent CDO 14 Corp.'s $461.875 million floating-rate notes. The preliminary ratings are based on information as of March 5, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The expected commensurate level of credit support in the form of subordination to be provided by the notes junior to the respective classes, and by the subordinated notes and overcollateralization; -- The cash flow structure, which was subjected to various stresses requested by Standard & Poor's; -- The experience of the collateral manager; and -- The legal structure of the transaction, including the bankruptcy remoteness of the issuer. Preliminary Ratings Assigned Cent CDO 14 Ltd./Cent CDO 14 Corp. Class Rating Amount ----- ------ ------ A-1 AAA $110,000,000 A-2a AAA $236,250,000 A-2b AAA $26,250,000 B AA $33,750,000 C A $24,375,000 D BBB $18,750,000 E BB $12,500,000 Income notes NR $38,125,000 NR - Not rated. CHARLES DEWBERRY: Case Summary & 17 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Charles D. Dewberry fdba Pacesetter Developers 150 Lake Horton Landing Drive Fayetteville, GA 30215 Bankruptcy Case No.: 07-10576 Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Newnan) Debtor's Counsel: George M. Geeslin, Esq. Eight Piedmont Center, Suite 550 3525 Piedmont Road, Northeast Atlanta, GA 30305-1565 Tel: (404) 841-3464 Fax: (404) 816-1108 Total Assets: $2,184,136 Total Debts: $3,036,129 Debtor's 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Heritage Bank Guaranty of Debt $1,500,000 440 North Jeff Davis Drive of Pacesetter Fayetteville, GA 30214 Builders Internal Revenue Service 2004 Income Tax $28,000 Insolvency Room 400 Stop 334D 401 West Peachtree Street Atlanta, GA 30308 Ford Motor Credit Ford $17,090 P.O. Box 105697 Atlanta, GA 30348-5697 First Equity Credit Card $14,623 FIA MBNA Credit Card $14,442 Bank of America Credit Card $14,249 Chase Cardmember Service Credit Card $10,079 Wells Fargo Financial Credit Card $6,920 Wells Fargo Business Platinum Credit Card $6,876 Sears Credit Card $5,080 American Express Credit Card $4,697 Advanta Bank Corp. Credit Card $3,539 Citi Business Cards Credit Card $2,562 Capital One Credit Card $1,721 Pitney Bowes Purchase Power $1,460 Wells Fargo Financial Credit Card $1,441 National Bank Chase BP Credit Card $889 CHIQUITA BRANDS: Delays Annual Report Filing -------------------------------------------- Chiquita Brands International Inc. disclosed in a regulatory filing with the Securities and Exchange Commission that it delayed the filing of its Annual Report on Form 10-K for the year ended Dec. 31, 2006. The company said it is currently seeking approval of an amendment with lenders under its credit agreement dated as of June 28, 2005, with respect to the treatment of a charge of $25 million recorded in its financial statements for the year ended Dec. 31, 2006, and certain other related costs in connection with the previously announced U.S. Department of Justice's evaluation of the company's officers and directors. "While the company is currently in compliance with the financial covenants under the credit agreement, this amendment is necessary to mitigate the potential of financial covenant non-compliance in future periods, which would affect the consolidated balance sheet classification of the company's debt as of Dec. 31, 2006, and related disclosures," Brian W. Kocher, Chiquita's vice president, controller and chief accounting officer, said. The company anticipates completing its credit agreement amendment in sufficient time to file Form 10-K for the year ended Dec. 31, 2006, by March 16, 2007, or sooner. U.S. Department of Justice Probe In a press statement dated Feb. 22, 2007, Chiquita disclosed that in April 2003, the company's management and audit committee, in consultation with the board of directors, voluntarily disclosed to the U.S. Department of Justice that its former banana-producing subsidiary in Colombia, which was sold in June 2004, had made payments to certain groups in that country which had been designated under United States law as foreign terrorist organizations. Following the voluntary disclosure, the Justice Department undertook an investigation, including consideration by a grand jury. In March 2004, the Justice Department advised that, as part of its criminal investigation, it would be evaluating the role and conduct of the company and some of its officers in the matter. In September and October 2005, the company was advised that the investigation was continuing and that the conduct of the company and some of its officers and directors was within the scope of the investigation. During the fourth quarter of 2006, the company commenced discussions with the Justice Department about the possibility of reaching a plea agreement. As a result of the discussions, and in accordance with the guidelines set forth in SFAS No. 5, the company has recorded a reserve of $25 million in its financial statements for the quarter and year ended Dec. 31, 2006. The amount reflects liability for payment of a proposed financial sanction contained in an offer of settlement made by the company to the Justice Department. The $25 million would be paid out in five equal annual installments, with interest, beginning on the date judgment is entered. The Justice Department has indicated that it is prepared to accept both the amount and the payment terms of the proposed $25 million sanction. According to the company, negotiations are ongoing, and there can be no assurance that a plea agreement will be reached or that the financial impacts of any such agreement, if reached, will not exceed the amounts currently accrued in the financial statements. Furthermore, the company said that the agreement would not affect the scope or outcome of any continuing investigation involving any individuals. In the event an acceptable plea agreement between the company and the Justice Department is not reached, the company believes the Justice Department is likely to file charges, against which the company would aggressively defend itself. The company is unable to predict the financial or other potential impacts that would result from an indictment or conviction of the company or any individual, or from any related litigation, including the materiality of such events. About Chiquita Brands Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Panama. * * * On Nov. 6, Moody's Investors Service downgraded its ratings for Chiquita Brands LLC., as well as for its parent Chiquita Brands International Inc. Moody's said the outlook on all ratings is stable. Standard & Poor's Ratings Services also lowered its ratings on Cincinnati, Ohio-based Chiquita Brands International Inc., including its corporate credit rating, from 'B+' to 'B'. S&P said the ratings remain on CreditWatch with negative implications where they were placed on Sept. 26. CLARENCE ARTIS: Case Summary & Four Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Clarence Junior Artis, II Deserae Lavita Wilson Unit 120 1258 DeKalb Avenue Northeast Atlanta, GA 30307 Bankruptcy Case No.: 07-63654 Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Atlanta) Judge: Joyce Bihary Debtor's Counsel: Paul Reece Marr, Esq. Paul Reece Marr, P.C. 300 Galleria Parkway, Northwest Suite 960 Atlanta, GA 30339 Tel: (770) 984-2255 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Beneficial Unsecured Loan $7,064 3054 Panola Road, Suite A Lithonia, GA 30038 Citifinancial Services, Inc. Unsecured Loan $3,718 2926 Canton Highway Marietta, GA 30066-3877 SunTrust DDA Recovery Dept. Unpaid Charged-Off $788 P.O. Box 26150-VA-RIC-9394 Account Richmond, VA 23260-6150 Infiniti Financial Services 2005 Infiniti G35 Unknown P.O. Box 650679 Dallas, TX 75265-0679 CMS ENERGY: Posts $90 Million Net Loss in Year Ended December 31 ---------------------------------------------------------------- CMS Energy Corp. reported net loss of $90 million on total operating revenue of $6.81 billion for 2006, compared to a net loss of $94 million on total operating revenue of $6.288 billion for 2005. Excluding impairment charges and other income, CMS Energy's 2006 net income was $142 million, compared to $295 million for 2005. The 2006 reported net loss includes the effects of these non-cash, after-tax charges: -- A third-quarter impairment charge of $169 million related to CMS Energy's 50 percent interest in the Atacama power plant and pipeline in Chile and Argentina. -- A fourth-quarter charge of $80 million linked to a preliminary agreement to settle shareholder class action lawsuits linked to round-trip energy trading. For the fourth quarter of 2006, CMS Energy reported net loss of $32 million, compared to net loss of $6 million for the same period in 2005. At Dec. 31, 2006, the company's balance sheet showed $15.371 billion in total assets, $6.319 billion in total liabilities, $91 million in minority interests, and $8.961 billion in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1abd Sale of International Businesses CMS Energy recently planned to sell the bulk of its international businesses and its non-utility natural gas assets in northern Michigan. Those sales are expected to be completed in 2007. The sales are contingent upon meeting deal-related closing conditions and receiving necessary regulatory and other approvals, and the successful execution of a bid sale of CMS Energy's remaining businesses in Latin America and in Jamaica. Proceeds from the sales will be used to retire part of the parent company debt and for general corporate purposes, including investments in CMS Energy's Michigan utility, Consumers Energy. "We will be in transition in 2007 as we lose earnings from the businesses being sold and realize the benefits of our increased investments in Consumers Energy later. The asset sales will allow us to significantly accelerate our financial improvement plan, and our adjusted earnings trend should be back on track in 2008," said David Joos, president and chief executive officer of CMS Energy. Liquidity Resources At Dec. 31, 2006, $422 million consolidated cash was on hand, which includes $71 million of restricted cash and $5 million from entities consolidated pursuant to FASB Interpretation No. 46(R). Net cash provided by operating activities was $688 million, an increase of $89 million versus 2005. This was the result of a decrease in accounts receivable, reduced inventory purchases, cash proceeds from the sale of excess sulfur dioxide allowances, and a return of funds formerly held as collateral under certain gas hedging arrangements. These changes were offset partially by decreases in the MCV Partnership gas supplier funds on deposit. Net cash used in investing activities was $751 million, an increase of $257 million versus 2005. This was primarily due to cash relinquished from the sale of assets, the absence of short- term investment proceeds, an increase in capital expenditures and cost to retire property, and an increase in non-current notes receivable. This activity was offset by the release of restricted cash in February 2006, which we used to extinguish long-term debt -- related parties. Net cash used in financing activities was $434 million, an increase of $508 million versus 2005. This was due to an increase in net retirement of long-term debt of $269 million combined with a decrease in proceeds from common stock issuances of $287 million. About CMS Energy CMS Energy (NYSE: CMS) -- http://www.cmsenergy.com/-- is a Michigan-based company that has as its primary business operations an electric and natural gas utility, natural gas pipeline systems, and independent power generation. * * * As reported in the Troubled Company Reporter on Feb. 14, 2007, Standard & Poor's Ratings Services placed its 'BB' corporate credit ratings on CMS Energy Corp. and its main subsidiary, Consumers Energy Co., on CreditWatch with positive implications. COMCAST CORP: Net Earnings Soar to $2.5 Billion in 2006 ------------------------------------------------------- Comcast Corp. reported net income of $2.533 billion in 2006, compared with net income of $928 million in 2005. Revenue increased to $24.966 billion in 2006, from $21.075 billion in 2005, reflecting increasing consumer demand for Comcast's services and the success of Comcast's Triple Play offer. In addition to strong operating results at Comcast Cable, the year includes an estimated one-time gain, included in investment income, of $646 million related to the Adelphia/Time Warner transactions. Also included in this year's results is a one-time gain of $195 million, net of tax, on discontinued operations related to the transfer of cable systems to Time Warner. Brian L. Roberts, Chairman and CEO of Comcast Corporation, said, "2006 was simply our best year ever. Powered by our triple play offering and superior products, we added more Revenue generating units (RGUs) than at any other time in our history and reported terrific growth in cable revenue and Operating Cash Flow. Revenue generating units increased 69%, or a record 5 million from prior year net additions of 3 million, to end the year at 50.8 million RGUs. Net Cash Provided by Operating Activities increased to $6.618 billion in 2006 from $4.835 billion in 2005 due primarily to stronger operating results, the cable system acquisitions and changes in operating assets and liabilities. At Dec. 31, 2006, the company's balance sheet showed $110.405 billion in total assets, $68.997 billion in total liabilities, $241 million in minority interest, and $41.167 billion in total stockholders' equity. The company's balance sheet at Dec. 31, 2006, also showed strained liquidity with $5.202 billion in total current assets available to pay $7.44 billion in total current liabilities. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2006, are available for free at http://researcharchives.com/t/s?1ac8 Share Repurchase Program In 2006, Comcast repurchased $2.3 billion or 75.4 million Class A Special Common (CMCSK) shares, reducing the number of total shares outstanding by more than 3%. Comcast repurchased $447 million or 11.2 million shares of its CMCSK stock during the fourth quarter of 2006. Availability under the company's stock repurchase program, as of Dec. 31, 2006, is $3 billion. Comcast expects that repurchases continue from time to time in the open market or in private transactions, subject to market conditions. Since the inception of the repurchase program in December 2003, the company has invested $7.4 billion in its common stock and related securities, reducing the number of shares outstanding by 11%. These investments include repurchasing $6 billion or 202.3 million shares of common stock and redeeming several debt issues for $1.4 billion that were exchangeable into 47.3 million shares of common stock. About Comcast Headquartered in Philadelphia, Pennsylvania, Comcast Corporation (Nasdaq: CMCSA, CMCSK) -- http://www.comcast.com/-- is the nation's leading provider of cable, entertainment and communications products and services. With 24.2 million cable customers, 11.5 million high-speed Internet customers, and 2.5 million voice customers, Comcast is principally involved in the development, management and operation of broadband cable networks and in the delivery of programming content. Comcast's programming networks and investments include E! Entertainment Television, Style Network, The Golf Channel, VERSUS (formerly OLN), G4, AZN Television, PBS KIDS Sprout, TV One and four regional Comcast SportsNets. Comcast also has a majority ownership in Comcast-Spectacor, whose major holdings include the Philadelphia Flyers NHL hockey team, the Philadelphia 76ers NBA basketball team and two large multipurpose arenas in Philadelphia. * * * Comcast Corp.'s preferred stock carries Moody's Investors Service's Ba1 Rating. COMVERSE TECH: Launches Zero Yield Puttable Securities Offering --------------------------------------------------------------- Comverse Technology, Inc. is commencing a cash tender offer for all of its outstanding Zero Yield Puttable Securities Due May 15, 2023 (CUSIP Nos. 205862AK1 and 205862AL9) and New Zero Yield Puttable Securities due May 15, 2023 (CUSIP No. 205862AM7), upon the terms and conditions set forth in the Offer to Purchase and related Letter of Transmittal, each dated March 2, 2007. The delisting of Comverse Technology's Common Stock from The NASDAQ Global Market was a Designated Event under the Indentures governing the ZYPS, and in order to satisfy its obligations under the Indentures, Comverse Technology is offering to purchase all of its outstanding ZYPS at a purchase price of $1,000 in cash for each $1,000 principal amount of ZYPS tendered. The Offer is scheduled to expire at 5:00 p.m., New York City time, on March 30, 2007, unless extended by Comverse Technology. As of Jan. 31, 2007, there was $419,647,000 aggregate principal amount of ZYPS outstanding. Comverse Technology has retained The Bank of New York Trust Company, N.A. to serve as the Depositary and D.F. King & Co., Inc. as the Information Agent for the Offer. Questions regarding the Offer and requests for documents in connection with the Offer may be directed to D.F. King & Co., Inc. at (800) 829-6551 (toll free) or, for banks and brokers, (212) 269-5550 (call collect). In addition, on or about March 19, 2007, Comverse Technology will disclose its unaudited financial results for the fiscal year ended Jan. 31, 2007. As a result of Comverse Technology's ongoing investigation of past stock option grants, including its evaluation of actual dates of measurement for certain grants which differ from the recorded grant dates, and of additional accounting issues, including errors in the recognition of revenue related to certain contracts, errors in the recording of certain deferred tax accounts and the misclassification of certain expenses in earlier periods as well as the possible misuse of accounting reserves and the understatement of backlog, Comverse Technology did not release earnings for the fiscal year ended Jan. 31, 2006, or for any subsequent fiscal quarter. About Comverse Technology Headquartered in New York City, Comverse Technology, Inc. (NASDAQ: CMVT) -- http://www.comverse.com/-- through its Comverse, Inc. subsidiary, provides software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication portfolio includes value-added messaging, personalized data and content-based services, and real- time converged billing solutions. Over 450 communication and content service providers in more than 120 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Other Comverse Technology subsidiaries include: Verint Systems (NASDAQ: VRNT), which provides analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (NASDAQ: ULCM), which provides of service enabling signaling software for wireline, wireless and Internet communications. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services kept its 'BB-' corporate credit and senior unsecured debt ratings on New York-based Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006. CREDIT SUISSE: Moody's Holds Ba1 Rating on Class L Certificates --------------------------------------------------------------- Moody's Investors Service upgraded the ratings of seven classes and affirmed the ratings of eight classes of Credit Suisse First Boston Mortgage Securities Corp., Commercial Mortgage Pass-Through Certificates, Series 2006-TFL1 as: - Class A-1, $391,172,340, Floating, affirmed at Aaa - Class A-2, $195,000,000, Floating, affirmed at Aaa - Class A-X-1, Notional, affirmed at Aaa - Class A-X-2, Notional, affirmed at Aaa - Class A-X-3, Notional, affirmed at Aaa - Class B, $39,000,000, Floating, upgraded to Aaa from Aa1 - Class C, $34,000,000, Floating, upgraded to Aa1 from Aa2 - Class D, $27,000,000, Floating, upgraded to Aa2 from Aa3 - Class E, $29,000,000, Floating, upgraded to Aa3 from A1 - Class F, $24,000,000, Floating, upgraded to A1 from A2 - Class G, $25,000,000, Floating, upgraded to A2 from A3 - Class H, $25,000,000, Floating, upgraded to A3 from Baa1 - Class J, $27,000,000, Floating, affirmed at Baa2 - Class K, $36,000,000, Floating, affirmed at Baa3 - Class L, $32,500,000, Floating, affirmed at Ba1 The Certificates are collateralized by two whole loans and three senior participation interests which range in size from 2.4% to 54.1% of the trust balance based on current principal balances. As of the February 15, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 18.4% to $884.7 million from $1.1 billion at securitization as a result of the payoff of two loans and property releases associated with the Tharaldson Portfolio and the Boston Wharf Portfolio Loans. Moody's current weighted average loan to value ratio is 65.6%, compared to 68.0% at securitization. Moody's is upgrading Classes B, C, D, E, F, G and H due to increased credit support from the loan payoffs, the improved performance of the Tharaldson Portfolio and Affinia Hospitality Portfolio Loans and property releases from both the Tharaldson Portfolio and the Boston Wharf Portfolio Loans. The Tharaldson Portfolio Loan (54.1%) is secured by 105 limited service and extended stay hotels with a total of 8,238 rooms. The properties are located in 26 states. All of the properties have established franchise affiliations including Marriott, Choice, Intercontinental, Carlson and Hilton and operate under 14 different flags. The largest flag concentrations are Fairfield Inn, Residence Inn and Courtyard by Marriott. RevPAR for calendar year 2006 was $67.93, compared to $61.30 at securitization. The loan sponsor is Whitehall Street Global Real Estate Limited Partnership 2005. Moody's LTV is 69.5%, compared to 72.4% at securitization. Moody's current shadow rating is Baa2, compared to Baa3 at securitization. The Affinia Hospitality Portfolio Loan (31.6%) is secured by six all-suite hotels located in New York City with a total of 1,569 guestrooms. Five of the hotels are full-service and one is limited-service. The hotels feature room sizes that are among the largest in New York City. Moody's classifies the New York City full-service hotel market as Green (88) and the limited-service hotel market as Yellow (36) in its 4th Quarter 2006 Red-Yellow- GreenTM report (see "CMBS: Red-Yellow-GreenTM Update, Fourth Quarter 2006", Moody's Special Report, January 3, 2007). At securitization $35.4 million ($22,562 per key) was invested in capital improvements and an additional $11.0 million was reserved for future renovations at three of the six hotels ($11,179 per key). RevPAR for calendar year 2006 was $230.97, compared to $193.54 at securitization. Moody's LTV is 59.8%, compared to 65.9% at securitization. Moody's current shadow rating is Baa1, compared to Baa3 at securitization. The Charleston Place Hotel Loan (7.6%) is secured by a luxury hotel containing 442 guestrooms with 51,186 square feet of retail space. The hotel is located in the historic district of Charleston, South Carolina. RevPAR for the trailing nine-month period ending September 2006 was $177.35, compared to $169.08 at securitization. The loan sponsor is Orient-Express Hotels Ltd. and A. Alfred Taubman. Moody's LTV is 66.5%, compared to 66.7% at securitization. Moody's current shadow rating is Baa3, the same as at securitization. The 120 Montgomery Street Loan (4.3%) is secured by a Class B office building located in the Financial District submarket of San Francisco. The building contains approximately 431,000 square feet of space. Moody's classifies the San Francisco CBD office market as Green (79) in its 4th Quarter 2006 Red-Yellow-GreenTM report. As of December 2006 the property was 70.0% leased, compared to 68.9% at securitization. The United States Government is the largest tenant occupying 16.7% of building's total net rentable area through 2016. Moody's LTV is 62.8%, compared to 62.6% at securitization. Moody's current shadow rating is Baa3, the same as at securitization. The Boston Wharf Portfolio Loan (2.4%) is secured by three office buildings and a parking garage located in the South Boston section of Boston, Massachusetts. Moody's classifies the Boston CBD office market as Green (84) in its 4th Quarter 2006 Red-Yellow- GreenTM report. Since securitization two office buildings that were originally in the portfolio were released (300 A Street and 263 Summer Street). The remaining properties (total rentable area of approximately 270,000 square feet) were 84.8% occupied as of December 2006, compared to 70.1% at securitization for the original portfolio that contained approximately 439,000 square feet. Moody's LTV is 56.7%, compared to 58.6% at securitization. Moody's current shadow rating is Baa2, the same as at securitization. CROWN CASTLE: Posts $41.89 Million Net Loss for Year Ended Dec. 31 ------------------------------------------------------------------ Crown Castle International Corp. had a net loss of $41,893,000 for the year ended Dec. 31, 2006, compared with a net loss of $401,537,000 for the previous year. During the previous year, the company had $283,797,000 in losses on purchase and redemptions of debt. For the year ended Dec. 31, 2006, the company had net revenues of $788,221,000, as compared with $676,759,000 for the year ended Dec. 31, 2005. Site rental revenues and network services and other revenues for 2006 were $696,724,000 and $91,497,000, respectively, as compared with $597,125,000 and $79,634,000, respectively, for 2005. The company had an operating income of $121,427,000 for the year 2006, as compared with an operating income of $22,595,000 a year earlier. Comprehensive net loss for the year 2006 was $18,830,000, down from $415,521, 000 for the prior year. The company's balance sheet as of Dec. 31, 2006, listed $5,006,168,000 in total assets, $3,907,964,000 in total liabilities, $29,052,000 in minority interests, and $312,871,000 in redeemable preferred stock, resulting to $756,281,000 in stockholders' equity. The company's accumulated deficit as of Dec. 31, 2006, stood at $2,184,598,000, up from $2,037,914,000 a year earlier. 2006 Cash Flows Net cash provided by operating activities were $275,759,000 and $204,912,000 in 2005 and 2006, respectively. Net cash used for investing activities were $264,140,000 and $432,499,000 for 2005 and 2006, respectively. Net cash provided by discontinued operations were $3,973,000 and $5,657,000 in 2005 and 2006, respectively. Cash and cash equivalents at the end of the years 2005 and 2006 were $65,408,000 and $592,716,000, respectively. Current Year Highlights On Oct. 5, 2006, the company entered into a definitive agreement, which contemplated the merger of Global Signal into one of its wholly owned subsidiary. Global Signal operated 10,749 towers, which are primarily concentrated in the southwestern, midwestern, Pacific coast and northeastern regions of the U.S. The company completed the Global Signal Merger on Jan. 12, 2007 in a stock and cash transaction valued at approximately $4 billion and issued approximately 98.1 million shares of common stock to the shareholders of Global Signal and paid the maximum Cash Consideration of $550 million and reserved for issuance approximately 600,000 shares of common stock issuable pursuant to Global Signal warrants. Pursuant to the indenture supplement dated Nov. 29, 2006, the company issued the 2006 Tower Revenue Notes as additional debt securities under the existing indenture pursuant to which the 2005 Tower Revenue Notes were issued in 2005. The 2006 Tower Revenue Notes have a weighted average fixed interest rate of approximately 5.71%, and 78.6% of the outstanding balance was rated investment grade. The 2005 Tower Revenue Notes and 2006 Tower Revenue Notes are secured by the personal property, license agreements, revenues, or distributions related to substantially all of the company's U.S., including Puerto Rico, towers as of the date of issuance of the 2006 Tower Revenue Notes. Proceeds from the 2006 Tower Revenue Notes were used to repay the company's previously outstanding credit facility entered into in June 2006. On Jan. 9, 2007, Crown Castle Operating Company entered into a credit agreement with a syndicate of lenders, pursuant to which such lenders agreed to provide the 2007 Revolver in the amount of $250 million, which matures in January 2008. The proceeds of the 2007 Revolver may be used for general corporate, which may include the financing of capital expenditures, acquisitions and purchases of the company's securities. The 2007 Revolver is currently undrawn. On Jan. 26, 2007, CCOC entered into a term loan joinder pursuant to which CCOC borrowed the 2007 Term Loan under the 2007 Credit Agreement. The 2007 Term Loan matures in January 2014. The proceeds of the 2007 Term Loan were used for the January 2007 Stock Purchase. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1ab5. About Crown Castle International Corp. Crown Castle International Corp. -- http://www.crowncastle.com/ -- engineers, deploys, owns, and operates shared wireless infrastructure, including extensive networks of towers. It offers wireless communications coverage to 68 of the top 100 United States markets and to substantially all of the Australian population. Crown Castle owns, operates and manages over 10,600 and over 1,300 wireless communication sites in the U.S. and Australia, respectively. * * * As reported in the Troubled Company Reporter on Dec. 1, 2006, Fitch placed a BB+ rating on Crown Castle's $249,000,000 class F Series 2006-1 commercial mortgage pass-through certificates and a BB rating to the company's $83,000,000 Class G Series 2006-1 commercial mortgage pass-through certificates. DAIMLERCHRYSLER AG: Considers Sale of Chrysler Group's Finance Arm ------------------------------------------------------------------ DaimlerChrysler AG is leaving all options open for Chrysler Group, including a possible sale of its Chrysler Financial auto loan and leasing unit, reports say. If the company decides to divest its loss-making U.S. unit, DaimlerChrysler CEO Dieter Zetsche said "we have the option to do the same with the financial arm, or not," Bloomberg relates. Speculations of a possible sale or spin-off arose after Mr. Zetsche announced on Feb. 14 that his company is keeping all options open for Chrysler, a report carried by The New York Times says. "Chrysler must follow the same turnaround path as Ford and GM, whether they are part of Daimler or owned by someone else," Pete Hastings, a fixed-income analyst at Morgan Keegan & Co., was cited by Bloomberg as saying. General Motors Corp. last year sold a 51% stake in its General Motors Acceptance Corp. finance unit to a consortium of investors led by Cerberus FIM Investors LLC and including wholly owned subsidiaries of Citigroup Inc., Aozora Bank Ltd., and The PNC Financial Services Group Inc. The sale carries a US$7.4 billion purchase price, a $2.7 billion cash dividend from GMAC, and other transaction related cash flows including the monetization of certain retained assets. GM and the Cerberus-led consortium invested $1.9 billion of cash in preferred equity in GMAC -- $1.4 billion by GM and $500 million by the consortium. Ford, on the other hand, said it doesn't plan to sell part of its Ford Motor Credit finance unit, Bloomberg relates. Chrysler Group earlier posted an operating loss of EUR1.12 billion in 2006, compared with an operating profit of EUR1.53 million in 2005. Its 2006 revenues of EUR47.1 billion were significantly lower than in 2005's EUR50.1 billion. The company blamed lower volumes and a weaker U.S. dollar on average for the deteriorating operating results. About DaimlerChrysler Headquartered in Stuttgart, Germany, DaimlerChrysler AG -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide locations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DORAL FINANCIAL: Declares Cash Dividend on 4 Series of Pref. Stock ------------------------------------------------------------------ Doral Financial Corporation, on Feb. 28, 2007, paid the regular monthly cash dividend of: * $0.2917 per share on its 7% Noncumulative Monthly Income Preferred Stock, Series A, * $0.173958 per share on its 8.35% Noncumulative Monthly Income Preferred Stock, Series B, and * $0.151042 per share on its 7.25% Noncumulative Monthly Income Preferred Stock, Series C. The dividend on each of the series was paid to the record holders as of the close of business on Feb. 26, 2007 in the case of the Series A Preferred Stock, and to the record holders as of the close of business on Feb. 15, 2007 in the case of Series B and Series C Preferred Stock. Based in New York City, Doral Financial Corp. (NYSE: DRL) -- http://www.doralfinancial.com/-- is a diversified financial services company engaged in mortgage banking, banking, investment banking activities, institutional securities and insurance agency operations. Its activities are principally conducted in Puerto Rico and in the New York City metropolitan area. Doral is the parent company of Doral Bank, a Puerto Rico based commercial bank, Doral Securities, a Puerto Rico based investment banking and institutional brokerage firm, Doral Insurance Agency Inc. and Doral Bank FSB, a federal savings bank based in New York City. * * * As reported in the Troubled Company Reporter on Jan. 8, 2007, Standard & Poor's Ratings Services lowered its long-term ratings on Doral Financial Corp., including the counterparty credit rating, to 'B' from 'B+'. The outlook remains negative. DYNEGY INC: Unit Launches New Senior Secured Credit Facility ------------------------------------------------------------ Dynegy Inc.'s indirect wholly owned subsidiary, Dynegy Holdings Inc., launched a new senior secured credit facility that proposes to amend and restate its current senior secured credit facility. Dynegy proposes to increase the revolving credit component of the facility from $470 million to $750 million and the term letter of credit component of the facility from $200 million to $500 million. "This new credit facility will create greater financial flexibility for the combined Dynegy/LS Power enterprise," Bruce A. Williamson, Chairman and Chief Executive Officer of Dynegy Inc., said. "As with other financial transactions entered into by the company, the new credit facility demonstrates a strong working relationship with our banking partners, their belief in the company and desire to be a part of Dynegy's future." The new bank facility is targeted to close at the end of the first quarter 2007 in connection with the proposed merger between Dynegy and LS Power. The $750 million revolving credit portion of the facility is anticipated to mature in April 2012. The $500 million term letter of credit portion of the facility is anticipated to mature in April 2013. Terms of the facility will be disclosed upon completion. Both the revolving credit facility and the term letter of credit facility will be available for general corporate purposes and to support activities of certain subsidiaries of Dynegy and DHI, to the extent permitted by the credit facility documentation. The revolving credit facility will also be available for letters of credit and may be used by DHI to provide funds to Dynegy for the repayment in full of the $275 million subordinated note to be issued pursuant to the previously announced merger agreement between Dynegy and LS Power. The lead arrangers for the new facility are Citigroup Global Markets Inc. and J.P. Morgan Securities Inc. About Dynegy Inc. Headquartered in Houston, Texas, Dynegy Inc. (NYSE:DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The company's power generation portfolio consists of more than 12,800 megawatts of baseload, intermediate and peaking power plants fueled by a mix of coal, fuel oil and natural gas. * * * As reported in the Troubled Company Reporter on Feb. 14, 2007, Fitch Ratings upgraded the issuer default ratings of Dynegy Inc. and Dynegy Holding Inc. to 'B' from 'B-' and removed the ratings from Rating Watch Evolving. The Rating Outlook of Dynegy, Inc. and Dynegy Holding, Inc. is Stable. EFRAIN DEHARO: Case Summary & Eight Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Efrain DeHaro 122 Bellwood Drive Dalton, GA 30721 Bankruptcy Case No.: 07-40564 Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Rome) Debtor's Counsel: Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, Northeast Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Honda Finance Exchange 2005 Honda ATV $2,440 P.O. Box 1168 Dalton, GA 30722 Lowe's Business Credit $1,695 P.O. Box 530914 Card Atlanta, GA 30353 Hamilton Medical Center Medical Bill $567 P.O. Box 1168 Dalton, GA 30722 Sears Gold Mastercard Business Credit $532 Windstream Utilities $125 Card Verizon Wireless $101 American First Federal Unknown Chase Auto Finance Unknown EL PASO: Fitch Puts Issuer Default Rating at BB+ ------------------------------------------------ Fitch Ratings has initiated rating coverage on El Paso Corp. as: -- Issuer Default Rating 'BB+'; -- Senior Unsecured 'BB+'. Fitch has also assigned new rating to El Paso's core pipeline subsidiaries. The Rating Outlook for all ratings is Stable. The parent company ratings recognize the significant improvement in credit profile in recent years including the reduction in business risk, the benefits of the company's portfolio of pipeline assets and the ongoing improvement in the upstream operations. Key offsetting factors include the significant leverage that remains on the balance sheet and lingering issues with the upstream operations. Since the merchant energy collapse of 2002, El Paso has made significant progress in reducing debt and other legacy issues. With net proceeds of $3.3 billion from the sale of the ANR Pipeline Company and 50% interest in the Great Lakes Gas Transmission Limited Partnership being used for debt reduction, Fitch expects year-end 2007 consolidated balance sheet debt to approach $12 billion versus the peak of nearly $23 billion during 2003. As part of the current phase of debt reduction, El Paso has tendered for a minimum of $2 billion in bonds in recent days and announced the redemption of $400 million of debt at SNG. Due to the reduction in debt, credit metrics will improve significantly in 2007 as debt to funds from operations will likely be less than 5.0 times (x) at year-end 2007 versus more than 20.0x in 2005. FFO interest coverage will likely improve to 3.3x for 2007 versus under 2.0x in 2005. Management has publicly committed to de-leveraging with the expectation that future growth will not impair the improvements made to the balance sheet. Of note, as evidenced by the ANR sale, debt reduction has primarily come from asset sale proceeds although the company has issued a fair amount of equity during this period of distress. The improvement in El Paso's credit profile also reflects the benefits of significantly reducing the company's business risk. Most recently in 2006, the company exited the domestic power business, settled its outstanding shareholder litigation and significantly downsized its trading business. The company also continues to downsize its international power operations with the remaining Asian and Central American assets to be sold by mid-2007 and the Brazilian assets expected to be divested over the next few quarters. E l Paso has also significantly simplified its capital structure. While the balance sheet improvement at El Paso is significant, including a material reduction in external debt at the parent company level, consolidated debt and the parent company debt will remain sizable at YE 2007. Service of the parent company debt will remain primarily reliant upon the upstream distributions and cash management program with its subsidiary companies. Additionally, consolidated debt to FFO, while improved significantly, remains high and subject to volatility given that nearly half of EBITDA will come from the upstream operations that exhibit significantly higher business risk. Factors Fitch would consider before taking positive rating action include: Improved upstream operating results at EEPC, expectations that credit measures will continue to strengthen and, in the case of El Paso's unsecured debt, the release of collateral under its bank revolver and letter of credit facility. Hence, the unsecured creditors would no longer be in a subordinated position. Current ratings fully recognize the anticipated de-leveraging effect of the ANR proceeds in 2007. The secured credit facility rating of 'BBB-' at the parent company recognizes the strong collateral package including certain inter-company receivables and the company's interest in CIG, EPNG and TGP. El Paso's fleet of natural gas pipelines are generally characterized by having moderate-to-low-risk operations providing El Paso a stable financial base. Ratings assigned to the pipeline subsidiaries reflect centralized treasury and financing practices with the parent company including money pools. El Paso's pipelines have typically been material providers to the money pool resulting in substantial levels of inter-company receivables and payables. Furthermore, El Paso management has substantial control over their operations and finances, including distributions. Given the scale and scope of the asset base, the pipeline portfolio has access to most major North American production basins and markets as well as most existing and planned import facilities for liquefied natural gas. With current pipeline transactions valued at greater than 10.0x EBITDA multiples, the pipelines also exhibit asset valuations well in excess of associated debt, even assuming distressed market conditions. Despite the weakened financial situation of El Paso in recent years, the company has been able to direct growth capital towards the pipeline segment including an estimated $610 million in 2007. Maintenance capital across the pipelines is reasonable at an estimated $400 million in 2007. Recognizing the financial and structural ties between El Paso and its pipeline subsidiaries and the strong credit quality of the individual subsidiaries, the IDR and senior unsecured rating of each rated pipeline entity is one- notch higher than the parent company at 'BBB-'. Since the significant negative revision to the company's oil and natural gas reserves in early 2004, El Paso has undertaken a restructuring of its upstream operations. The company reported 100% reserve replacement in 2006. More than 90% of El Paso's reserves are located in the United States under EEPC with a mix of longer-lived onshore (65% of total) and short-lived offshore and Gulf Coast properties (26%). While somewhat lower production in 2006 positively influenced the reserve life metric, El Paso's total proven reserve base to prior year production (R/P) ratio improved to 9.1 years at YE 2006. Proven developed reserves also totaled 73% at year-end including 11% proven developed non- producing. The company is also benefiting from the roll off of its legacy hedges in 2006 and the cash flow from its new hedging program. The company has locked in approximately 223 Bcf of natural gas hedges with an average floor of $7.69/mcf. This represents approximately 89% of the company's forecasted domestic natural gas production in 2007. The additional benefit of rolling off the legacy hedges has been the return of a significant portion of the cash margin requirements. During the first nine months of 2006, $896 million was returned to El Paso versus a net cash outflow of $679 million in 2005. The new costless collars require no margin. With nearly $1.2 billion invested in the finding and development of reserves during 2006, replacement costs were very high for the year at $4.17 per thousand cubic feet equivalent and $3.51/mcfe excluding price-related reserve revisions. Costs are expected to remain high with the initial forecast for 2007 to be $4.00/mcfe as upstream investment is targeted to rise to nearly $1.7 billion in 2007. Investments in 2007 include the $255 million acquisition in south Texas in January and significant investment in Brazil where production will lag the initial cash outflows. With all-in costs also including lifting costs, production related taxes, general and administrative, etc., the upstream segment will generate limited free cash flow from the segment despite the improved hedge position. Production in 2007 is forecast to be 800 mcfe to 860 mcfe, including the company's 43.1% proportionate share of Four Star Oil & Gas Company (Four Star), representing growth of between 0% and 8% over 2006. As with the pipeline companies, the 'BB' IDR and senior unsecured ratings of EEPC reflect its affiliate relationship with El Paso as management has substantial control over its operations and finances as well. EEPC also participates in EP's cash management plan. With the increasing investment in the upstream operations, EEPC has been a receiver of cash in recent years under the plan. In August 2005, EEPC entered into a five-year $500 million secured credit facility. The 'BB+' rating of the credit facility reflects the collateral package which includes certain of the company's upstream assets. The collateral is also available to be used for the company's hedging agreements. El Paso also expects to create a master limited partnership in 2007 with initial assets expected to total $500 million. Based on current transaction multiples, the initial dropdowns would likely represent approximately $50 million of annual EBITDA. The ultimate capitalization, growth and asset make-up of the MLP are uncertain. Possible assets include the company's LNG assets which are held under the SNG subsidiary and El Paso's natural gas storage facilities. El Paso Corporation -- Issuer Default Rating (IDR) 'BB+'; -- $500 million secured letter of credit facility (2011) 'BBB-'; -- $1.25 billion senior secured revolving credit facility (2009) 'BBB-'; -- $500 million senior unsecured credit facility (2011) 'BB+'; -- Senior unsecured notes and debentures 'BB+'; -- Perpetual preferred stock 'BB-'. El Paso Energy Capital Trust I -- Trust convertible preferred securities 'BB-'. Colorado Interstate Gas Company (CIG) -- Issuer Default Rating (IDR) 'BBB-'; -- Senior unsecured debt 'BBB-'. El Paso Natural Gas Company (EPNG) -- Issuer Default Rating (IDR) 'BBB-'; -- Senior unsecured debt 'BBB-'. Southern Natural Gas Company (SNG) -- Issuer Default Rating (IDR) 'BBB-'; -- Senior unsecured debt 'BBB-'. Tennessee Gas Pipeline Company (TGP) -- Issuer Default Rating (IDR) 'BBB-'; -- Senior unsecured debt 'BBB-'. El Paso Exploration & Production Company (EEPC) -- Issuer Default Rating (IDR) 'BB'; -- Senior secured revolving credit facility (2011) 'BB+'; -- Senior unsecured debt 'BB'. El Paso owns North America's largest interstate natural gas pipeline network comprised of approximately 44,000 miles of pipe, 220 Bcf of storage capacity, and an LNG import facility with 1.2 Bcf per day of send-out capacity. The company's upstream operations included year-end 2006 estimated reserves of approximately 2.4 billion cubic feet equivalent of consolidated proven reserves and 222 bcfe of proven reserves for El Paso's interest in Four Star. EQUISTAR CHEMICALS: Fitch Holds Ratings with Positive Outlook ------------------------------------------------------------- Fitch Ratings affirms the ratings for Lyondell Chemical Company, Equistar Chemicals L.P., Millennium Chemicals Inc. and Millennium America Inc. following Lyondell's announcement to sell its worldwide inorganic chemicals business for $1.2 billion, including the assumption of certain liabilities directly related to the business. The transaction is expected to include a cash payment of $1.05 billion, and result in after tax proceeds of $975 million. The affirmed ratings are: Lyondell -- Issuer default rating at 'BB-'; -- Senior secured credit facility and term loan at 'BB+'; -- Senior secured notes and debentures at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Senior subordinated notes at 'B'. Equistar -- Issuer default rating at 'B+'; -- Senior secured credit facility at 'BB+/RR1'; -- Senior unsecured notes at 'BB-/RR3'. Millennium Chemicals Inc.'s: -- Issuer Default Rating (IDR) at 'B+'; -- Convertible senior unsecured debentures at 'BB/RR2'. Millennium America Inc.: -- Issuer Default Rating (IDR) 'B+'; -- Senior secured credit facility and term loan 'BB+/RR1'; -- Senior unsecured notes 'BB/RR2'. At the same time, the Rating Outlook for Lyondell, Equistar and Millennium was revised to Positive from Stable. For Lyondell, approximately $5.0 billion of debt is covered; for Equistar, approximately $2.2 billion of debt is covered; and for Millennium Chemicals, approximately $853 million of debt is covered by these actions. The Positive Outlook reflects the likelihood that Lyondell will be able to accelerate its debt reduction efforts in the next 12-18 months. Additionally, supply/demand fundamentals continue to be favorable for most of Lyondell's products. Fitch also expects energy and raw material prices will continue to be volatile although these prices on average are expected to trend lower. Continued strong operations from petrochemical and refining operations are likely to offset other cyclical businesses within the portfolio. The affirmation for Lyondell's debt ratings are supported by the recent announcement to sell its Inorganics business which should provide for accelerated debt repayment in the near term. Furthermore, the affirmation also considers Lyondell's better than expected cash generation and debt repayment during 2006. Multiple debt issues are accessible at Lyondell (parent), Equistar and Millennium. Fitch expects debt prepayment premiums and charges will be paid on certain issues instead of allowing cash to build and repay maturities as they come due. Fitch also expects debt reduction targets could potentially be met during 2008. Lastly, Lyondell's size, integrated businesses in refining, petrochemicals and performance products, liquidity and access to capital markets support the rating. The affirmation and revised Rating Outlook to Positive from Stable for Millennium is supported by the expected benefit as a result of the Inorganics divestiture. The asset sale will likely accelerate debt reduction. Currently, Millennium cannot declare dividends to Lyondell due to certain restrictions in its existing bond indenture for the 9.25% senior unsecured notes. Fitch expects these 9.25% notes due June 2008 could potentially be repaid by the company to allow for future cash dividends to Lyondell by Millennium. Depending on debt levels at Millennium post the completion of the Inorganics sale, and the cash flow generation from remaining businesses to support such debt, the ratings could be raised in the next 12-18 months. Potential rating concerns include the Millennium's high dependency on Equistar cash distributions and any new negative developments regarding Millennium's ongoing lead paint litigation. At Dec. 31, 2006, Millennium had $1 billion in indemnity coverage for lead-based paint and lead pigment litigation. The affirmation and revised Rating Outlook to Positive from Stable for Equistar is supported by the overall indirect, and possibly direct, benefit of the Inorganics divestiture. The asset sale could accelerate debt reduction and possibly reduce the need for Equistar to dividend existing cash to partners, and instead use available cash for debt reduction at Equistar. Additionally Equistar's ratings are limited by its parent Lyondell, and the Positive Rating Outlook also reflects the likelihood that Lyondell's ratings could be raised in the next 12-18 months. Equistar's ratings are limited by Lyondell due Lyondell's strong access to its cash flow, Equistar's primary focus on North American markets and its narrower product portfolio compared to Lyondell. Lyondell holds leading global positions in propylene oxide and derivatives, plus TiO2, as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid, and vinyl acetate monomer. The company also has substantial refining operations located in Houston, Texas. The company benefits from strong technology positions and barriers to entry in its major product lines. Lyondell owns 100% of Equistar; 70.5% directly and 29.5% indirectly through its wholly owned subsidiary Millennium. In 2006, Lyondell and subsidiaries generated $2.55 billion of EBITDA on $22.2 billion in sales. FELLOWS ENERGY: Restructures Convertible Debt Securities -------------------------------------------------------- Fellows Energy Ltd. has entered into a series of transactions to restructure securities issued pursuant to securities purchase agreements dated June 17, 2005, and Sept. 21, 2005. Specifically, on Feb. 15, 2007: * JGB Capital L.P., an accredited investor, entered into an assignment agreement with Crescent International Ltd., pursuant to which Crescent purchased from JGB $5,501,199 of debentures maturing Sept. 16, 2008. The debentures were issued pursuant to a June 17, 2005, financing. The face value of the June Debentures issued to JGB at the time of the transaction was $333,333 and Crescent paid $250,000 to JGB for the assignment; * Fellows Energy entered into a settlement agreement with JGB for $83,333. The company amended the terms of the old warrants held by JGB to remove the ratchet and call provisions and JGB agreed to release any shares reserved for issuance of the Old Warrants and to not exercise the Old Warrants until Fellows Energy obtains an increase in the authorized shares of common stock. Upon obtaining the increase in authorized shares, the company agreed to issue JGB 500,000 shares of restricted common stock; * The company entered into a first amendment and waiver agreement with Palisades Master Fund, L.P., for the amendment of old debentures issued to Palisades; and * The company entered into a first amendment and waiver agreement with Crescent for the amendment of old debentures issued to JGB and Crescent. In the restructuring transactions, Fellows also closed a financing pursuant to a securities purchase agreement with Palisades for the issuance of a $714,500 face amount debenture maturing Sept. 15, 2007. The New Debenture does not accrue interest. Investors paid $500,000 for the New Debenture, resulting in net proceeds of $400,000 before legal fees. The changes highlighted in the June and September 2005 agreements include the removal of the ratchet and call provisions; removal of the mandatory monthly liquidation and amortization provisions, and amending the fixed conversion price to $0.1375. "We are very pleased to have completed this restructuring," said George Young, president of Fellows Energy. "This restructuring will be very beneficial to Fellows and our shareholders by eliminating the monthly amortization payments, which we believe will result in a more orderly trading market for our stock, and by fixing the conversion price at a level 40% above the current market price." "We believe that this transaction, combined with the recent reserve report showing in excess of 10.5 BCF of gas in the proven reserve category and net income potential of over $17 million from the Carbon County project, will allow us to move forward in developing this acreage. We also expect that this new structure will enable us to acquire additional producing properties and raise additional capital for our increasing development activities on our other projects." About Fellows Energy Incorporated in Nevada on April 9, 2001, Fellows Energy Ltd. (OTCBB: FLWE) -- http://www.fellowsenergy.com/-- was originally formed to offer business consulting services in the retail automobile fueling industry. In November 2003, the company ceased all activity in the automotive fueling industry and entered the oil and gas business, focusing on exploration for oil and gas in the Rocky Mountain Region. On January 5, 2004, the company acquired certain interests in certain oil and gas leases and other interests owned by Diamond Oil & Gas Corporation, a Nevada corporation. Diamond is wholly owned by George S. Young, Fellows Energy Ltd.'s CEO. The company's current strategy is to pursue both short- and long- term opportunities to leverage its large acreage position in the Rockies, which management believes are characterized by reasonable entry costs, favorable economic terms, high reserve potential relative to capital expenditures and the availability of existing technical data. Going Concern Mendoza Berger & Company, Irvine, Calif., expressed substantial doubt about Fellows Energy's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2005. The auditing firm pointed to the company's significant operating losses since inception. FIRST BANCORP: Settles Class Action Suit for $74.25 Million ----------------------------------------------------------- First BanCorp has reached an agreement in principle to settle all claims with the lead plaintiffs in a shareholder class action originally filed in 2005. Under the terms of the settlement, which is subject to notice being provided to the class and final approval by the United States District Court for the District of Puerto Rico, First BanCorp will pay the plaintiffs $74,250,000. "I am pleased with the speed and appropriateness of the settlement that we reached with the plaintiffs," said Luis Beauchamp, President and Chief Executive Officer of First BanCorp. "[The action] is another significant step in our efforts to fully address our pending legal and regulatory matters, and we look forward to continuing to build a leading banking franchise for our customers, shareholders and employees." In anticipation of the settlement, First BanCorp recorded an accrual of $74,250,000 in its financial statements for the year ended Dec. 31, 2005. First BanCorp had been in discussions, led by a mediator, with the lead plaintiff regarding a settlement. Financial Reporting First BanCorp plans to file its annual report on Form 10-K for the fiscal year ended Dec. 31, 2006 in the summer of 2007. As soon as practicable thereafter, First BanCorp expects to file with the Securities and Exchange Commission the financial information required for its fiscal quarters ended March 31, 2005, June 30, 2005, Sept. 30, 2005, March 31, 2006, June 30, 2006, Sept. 30, 2006 and the corresponding quarters for 2007. About First BanCorp First BanCorp (NYSE: FBP) is the parent corporation of FirstBank Puerto Rico, a state chartered commercial bank with operations in Puerto Rico, the Virgin Islands and Florida; of FirstBank Insurance Agency; and of Ponce General Corporation. First BanCorp, FirstBank Puerto Rico and FirstBank Florida, formerly UniBank, the thrift subsidiary of Ponce General, all operate within U.S. banking laws and regulations. The Corporation operates a total of 153 financial services facilities throughout Puerto Rico, the U.S. and British Virgin Islands, and Florida. Among the subsidiaries of FirstBank Puerto Rico are Money Express, a finance company; First Leasing and Car Rental, a car and truck rental leasing company; and FirstMortgage, a mortgage origination company. In the U.S. Virgin Islands, FirstBank operates First Insurance VI, an insurance agency; First Trade, Inc., a foreign corporation management company; and First Express, a small loan company. * * * As reported in the Troubled Company Reporter - Latin America on Feb. 23, 2007, Fitch Ratings has affirmed First BanCorp's long- term Issuer Default Rating of 'BB' and Individual rating of 'C/D' and removed the Rating Watch Negative. The Rating Outlook is Negative. Fitch placed the ratings of First BanCorp on Rating Watch Negative on Oct. 30, 2006. At the same time, Fitch is affirming the IDR and short-term rating of FBP's subsidiary, FirstBank of Puerto Rico at 'BB' and 'B', respectively. The Rating Outlook remains Negative. FORD MOTOR: Nears Deal to Sell Aston Martin Unit in Auction ----------------------------------------------------------- Ford Motor Co. could announce the sale of its Aston Martin sports car unit for GBP450 million as early as this week, an unidentified source told News Limited. Speaking at the Merrill Lynch Global Automotive Conference in Geneva on Monday, Ford Europe head Lewis Booth said that the sale of all or a part of the luxury sports car brand "has not reached conclusion" but that a sale would conclude sometime this year, The Wall Street Journal relates. According to media reports, possible bidders include: * Motor-racing firm Prodrive, with Egypt's Naeem investment bank; * UK buyout firm Doughty Hanson; * Canadian car parts company Magna; * Syrian-born property mogul Simon Halabi; and * a consortium including Australian media billionaire James Packer. Ford has explored strategic options for Aston Martin in August last year, with particular emphasis on a potential sale of all or a portion of the unit. Aston Martin, up for sale for more than GBP450 million, is part of the company's Premier Automotive Group -- the organization under which all of Ford's European brands are grouped. The group also includes other brands like Volvo, Land Rover, and Jaguar. The sale of Aston Martin is in line with the company's cost reduction plan, which, according to its chief executive officer Alan R. Mulally, includes the reduction of the number of vehicle platforms the company uses around the world and increase in the number of shared parts. The auction is run by UBS AG. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury, and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. * * * As reported in the TCR-Europe on Dec. 13, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. after the company increased the size of its proposed senior secured credit facilities to between $17.5 billion and $18.5 billion, up from $15 billion. As reported in the Troubled Company Reporter on Dec. 7, 2006, Fitch Ratings downgraded Ford Motor Company's senior unsecured ratings to 'B-/RR5' from 'B/RR4' due to the increase in size of both the secured facilities and the senior unsecured convertible notes being offered. As reported in the Troubled Company Reporter on Dec. 6, 2006, Moody's Investors Service assigned a Caa1, LGD4, 62% rating to Ford Motor Company's $3 billion of senior convertible notes due 2036. FREMONT GENERAL: To Exit Sub-Prime Lending Operations ----------------------------------------------------- Fremont General Corporation disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that it will exit its sub-prime residential real estate lending operations. The move comes as a result of the company's receipt on Feb. 27, 2007, of a Proposed Cease and Desist Order from the Federal Deposit Insurance Corporation. The company's management and board of directors have entered into discussions with various parties regarding the sale of this business. To assist in the evaluation of its alternatives, the Company has retained Credit Suisse Securities LLC as its financial advisor. The Order however doesn't seek any changes in the company's retail deposit gathering business. As a result, its wholly-owned industrial bank, Fremont Investment & Loan, will continue to seek deposits, which will continue to be insured for up to $100,000 by the FDIC. The company will also continue to originate commercial real estate loans. This business continues to perform well and remains profitable. The commercial real estate loan portfolio outstanding, as of Dec. 31, 2006, was $6.5 billion and had pre-tax segment earnings of approximately $211 million for all of 2006, and experienced no net charge-offs in 2006. The allowance for loan losses for the commercial real estate portfolio was approximately $194.5 million, or 3.0% of the portfolio, at year- end. "Thanks in part to its very substantial equity and its $8 billion retail deposit franchise, Fremont Investment & Loan has significant balance sheet strength and funding capacity that we believe will enable us to exit the sub-prime lending business in an orderly and disciplined way. We also remain a premier commercial real estate lender," said Louis J. Rampino, President and Chief Executive Officer of Fremont General and Chairman of Fremont Investment & Loan. "In addition, we remain in the retail deposit business and continue to provide excellent service to our depositors in our over 70-year-old retail deposit business. Our valued deposit customers should be reassured by our strong capital level and the fact that deposits at FIL of up to $100,000 are insured by the FDIC." Cease and Desist Order The company discloses that as a consequence of the Order, Fremont Investment and another wholly owned subsidiary, Fremont General Credit Corporation), will enter into a voluntary formal agreement, to be designated as a cease and desist order, with the FDIC. Among other things, the Order will require Fremont Investment to cease and desist from: * Operating with management whose policies and practices are detrimental to Fremont Investment; * Operating Fremont Investment without effective risk management policies and procedures in place in relation to Fremont Investment's brokered subprime mortgage lending and commercial real estate construction lending businesses; * Operating with inadequate underwriting criteria and excessive risk in relation to the kind and quality of assets held by Fremont Investment; * Operating without an accurate, rigorous and properly documented methodology concerning its allowance for loan and lease losses; * Operating with a large volume of poor quality loans; * Engaging in unsatisfactory lending practices; * Operating without an adequate strategic plan in relation to the volatility of Fremont Investment's business lines and the kind and quality of assets held by Fremont Investment; * Operating with inadequate capital in relation to the kind and quality of assets held by Fremont Investment; * Operating in such a manner as to produce low and unsustainable earnings; * Operating with inadequate provisions for liquidity in relation to the volatility of Fremont Investment's business lines and the kind and quality of assets held by Fremont Investment; * Marketing and extending adjustable-rate mortgage products to subprime borrowers in an unsafe and unsound manner that greatly increases the risk that borrowers will default on the loans or otherwise cause losses to Fremont Investment, including: (1) ARM products that qualify borrowers for loans with low initial payments based on an introductory rate that will expire after an initial period, without adequate analysis of the borrower's ability to repay at the fully indexed rate, (2) ARM products containing features likely to require frequent refinancing to maintain affordable monthly payment or to avoid foreclosure, and (3) loans or loan arrangements with loan-to-value ratios approaching or exceeding 100% of the value of the collateral; * Making mortgage loans without adequately considering the borrower's ability to repay the mortgage according to its terms; * Operating in violation of Section 23B of the Federal Reserve Act, in that Fremont Investment engaged in transactions with its affiliates on terms and under circumstances that in good faith would not be offered to, or would not apply to, nonaffiliated companies; and * Operating inconsistently with the FDIC's Interagency Advisory on Mortgage Banking and Interagency Expanded Guidance for Subprime Lending Programs. About Fremont General Headquartered in Santa Monica, Calif., Fremont General Corporation (NYSE:FMT) -- http://www.fremontgeneral.com/-- is a financial services holding company. Fremont General's financial services operations are consolidated within Fremont General Credit Corporation, which is engaged in commercial and residential real estate lending nationwide through its California-chartered industrial bank subsidiary, Fremont Investment & Loan. FIL is primarily funded through deposit accounts that are insured up to the maximum legal limit by the Federal Deposit Insurance Corporation, and to a lesser extent, advances from the Federal Home Loan Bank. FREMONT GENERAL: Delays Filing of Form 10-K for Year Ended Dec. 31 ------------------------------------------------------------------ Fremont General Corporation reported that it will delay the filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2006. The company discloses that it expects to file its Form 10-K by March 16, 2007. Headquartered in Santa Monica, Calif., Fremont General Corporation (NYSE:FMT) -- http://www.fremontgeneral.com/-- is a financial services holding company. Fremont General's financial services operations are consolidated within Fremont General Credit Corporation, which is engaged in commercial and residential real estate lending nationwide through its California-chartered industrial bank subsidiary, Fremont Investment & Loan. FIL is primarily funded through deposit accounts that are insured up to the maximum legal limit by the Federal Deposit Insurance Corporation, and to a lesser extent, advances from the Federal Home Loan Bank. FREMONT GENERAL: DBRS Downgrades Senior Loan's Rating to B (low) ---------------------------------------------------------------- Dominion Bond Rating Service downgraded all the ratings of Fremont General Corporation and its subsidiaries, including Fremont's Issuer and Senior Debt rating to B (low) from B (high). DBRS also downgraded Fremont Investment & Loan's Deposits & Senior Debt rating to B (high) from BB (low). All ratings remain Under Review with Negative Implications. These actions follow the company's announcement that it expects Fremont Investment and the company's wholly owned subsidiary, Fremont General Credit Corporation, will enter into a voluntary formal agreement, to be designated as a cease and desist order, with the Federal Deposit Insurance Corporation. Along with the details of the proposed C&D, the company announced that it will exit the subprime mortgage business. Among other things, the C&D calls for the Company to make a variety of changes designed to restrict the level of lending in its subprime residential mortgage business, constrains its commercial real estate lending, limits the payments of cash dividends to Fremont by Fremont Investment without regulator approval and includes a 14% Tier 1 capital ratio requirement on Fremont Investment's total assets. DBRS believes that the cash dividend limitation weakens the liquidity position of Fremont, which accounts for the two-notch differential between Fremont's rating and that of Fremont Investment. Moreover, capitalization and financial flexibility will be pressured by the 14% Tier 1 capital requirement set out in the proposed order. DBRS is concerned that the terms of the Order, along with any continued high level of repurchase requests caused by early payment defaults, will negatively affect the company's prospects of a timely and favorable sale of the subprime mortgage business. Fremont's commercial real estate lending operations have provided a level of business and revenue diversification. Although this business continues to perform well, DBRS is concerned that the limitations included in the C&D will weaken the performance of this unit, putting further pressure on the ratings. Although Fremont has yet to file its Form 10-K, it is expected that the Company will report a net loss from continued operations for the fourth quarter of 2006, attributed to an increase of provisions for loan repurchase and premium recapture. Fremont is still assessing the full-year results. DBRS believes that the increased provisions may have a sizable impact on the Company's financial flexibility; however, uncertainties remain until the form is actually filed. DBRS sees the impact of these uncertainties being exacerbated by the current deteriorating market conditions in the residential subprime mortgage industry. DBRS is concerned that this delay and any prolonged delays in filing financial results will have a significant impact on the Company's ability to access funding. Moreover, DBRS is concerned about the weakening fundamentals of Fremont, which have been negatively affected by rising costs associated with the high level of repurchase requests attributed to the elevated level of early payment defaults. In 2006, performance has deteriorated throughout the subprime mortgage sector; however, delinquency and foreclosure rates in securitizations backed by Fremont collateral were among the highest in the sector. Although the Company has taking steps to stem the early payment defaults, DBRS believes that any continuation of the high level of repurchased loans could substantially weaken the Company's balance sheet, leading to potential writedowns of on-balance-sheet residential loans. Importantly, the deterioration of the balance-sheet assets may have a significant impact on liquidity and capital. The Under Review with Negative Implications status is based on the uncertainties associated with the delay in releasing financial results and the liquidity ramifications of any additional delays in filing Form 10-K. DBRS sees the impact of these uncertainties being exacerbated by the current deteriorating market conditions in the residential subprime mortgage industry. DBRS's review will focus on the Company's progress in releasing its financial results and filing its Form 10-K, on its progress in exiting the subprime business and on its ability to manage its liquidity and limit deposit outflows given the headlines and constraints on the broker deposits included in the C&D, as well as the company's success in curtailing the pace of early payment default repurchase activity and improving credit quality. FREMONT GENERAL: Fitch Junks Issuer Default Rating; Retains Watch ----------------------------------------------------------------- Fitch Ratings has downgraded Fremont General Corp. as: -- Long-Term Issuer Default Rating to 'CCC' from 'B+'; -- Short-Term Issuer to 'C' from 'B'; -- Long-Term senior debt to 'CC' from 'B'; -- Individual to 'E' from 'D'. Fitch's rating action reflects FMT's recent regulatory filing disclosing that FMT, FIL and FMT's wholly owned subsidiary, Fremont General Credit Corporation, will enter into a formal cease and desist order with the Federal Deposit Insurance Corporation. The C&D criticized a number of the FMT's practices, including violations of Section 23B pertaining to transactions between affiliates. FMT also announced it intends to exit the subprime residential lending business and is engaged in discussions regarding sale of the business. This development, the latest in a series of events that has adversely affected FMT's credit profile, adds to Fitch's concerns previously noted in recent Rating Action Commentaries. Fitch also believes that FMT's financial flexibility will weaken further and the prospects for receiving a reasonable value for the subprime business are low. The Negative Rating Watch indicates that further downgrades are possible. The recent regulatory action significantly weakens the liquidity profile of FMT as the FDIC protects the interests of the depositors by insulating the bank or FIL. The C&D includes maintaining Tier I capital ratio above 14% and limits cash dividends by FIL without the prior written consent of regulators. As Fitch previously noted, debt at the holding company level is mainly being serviced by cash flows from residual interests in mortgage-backed securities (MBS) backed by FIL-originated subprime residential real estate loan collateral. The residual interests are in the form of Net Interest Margin (NIM) bonds which can be volatile and generate inconsistent cash flows. Recent vintages of Fremont MBS related to the NIMS have underperformed, and as a consequence, cash flows from residuals may decline. At Sept. 30, 2006, FMT had available cash on hand and some contingent funding to offset any potential cash shortfalls from the residuals, however, FMT can no longer rely on cash dividends from FIL and the valuation of the NIM bonds may change as the company's valuation methodology has been criticized. Furthermore, Fitch expects that FMT will have difficulty executing its business plan under the restrictions imposed by the C&D. For example, the C&D requires additional control over FIL's commercial real estate lending function, including a planned material reduction in the volume of non-recourse loans for condominium conversion and construction - a market that FIL has emphasized. While details have not been released, Fitch believes that more downside risk will materialize as a result of FMT's announcement pressuring FMT's financial flexibility. In addition, the recovery prospects for FMT bondholders would likely be lower than previously estimated. In considering rating downgrades for FMT and FIL, such action would be likely if default on FMT debt becomes imminent. To resolve the Rating Watch, Fitch will consider a number of factors such as its ability to sell the subprime mortgage business and meet capital requirements under the C&D. Fitch has assigned a 'RR2' Recovery Rating to FIL's long-term deposits reflecting a recovery 71%-90%. Fitch has also assigned Recovery Ratings of 'RR5' and 'RR6' to FMT's senior debt and preferred stock (issued through Fremont General Financing I). Recovery Ratings in the 'RR5' range indicate below average recovery or 11% - 30%, while 'RR6' Recovery Ratings reflect poor recovery or 0% - 10%. While not a bank holding company, FMT is a holding company that engages in lending through FIL, which is an industrial bank regulated by the FDIC and the Department of Financial Institutions of the State of California. Fitch has downgraded these ratings and kept them on Rating Watch Negative: Fremont General Corp. -- Long-term Issuer Default Rating to 'CCC' from 'B+'; -- Long-term senior debt to 'CC/RR5' from 'B'; -- Short-term issuer to 'C' from 'B'; -- Individual to 'E' from 'D'. Fremont General Financing I -- Preferred securities to 'C/RR6' from 'CCC+'. Fremont Investment & Loan -- Long-term deposits to 'B-/RR2' from 'BB'; -- Short-term deposits to 'C' from 'B'; -- Long-term Issuer Default Rating to 'CCC' from 'BB-'; -- Short-term Issuer to 'C' from 'B'; -- Individual to 'E' from 'C/D'. FREMONT GENERAL: S&P Lowers Rating and Retains Negative Watch ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its counterparty credit rating on Fremont General Corp. to 'B-' from 'B+'. Standard & Poor's also said that the rating remains on CreditWatch with negative implications, where it was placed on March 1, 2007. "The rating action reflects our concerns about Fremont's decision to exit the subprime real estate lending business following a proposed cease-and-desist order from the FDIC," explained Standard & Poor's credit analyst Adom Rosengarten. "This voluntary decision calls into question the company's ability to compete as a monoline lender in the risky commercial real estate market. The company might also have to lighten concentrations in its commercial real estate portfolio to satisfy the conditions of the cease-and-desist order." In addition to the increased pressure that Fremont has faced from the overall state of the subprime mortgage market, the cease-and- desist order may signal significant deficiencies in the risk- management processes and oversight in Fremont's core business lines, raising concerns about higher credit costs and Fremont's ultimate level of core earnings. The divestiture of its subprime lending operations would constitute the loss of a large source of revenue and business diversification for Fremont. The ratings remain on CreditWatch negative to reflect the uncertainty surrounding the release of the company's 2006 financial results and the disposition of its sub-prime lending operations. FREMONT GENERAL: Moody's Downgrades Ratings and Retains Review -------------------------------------------------------------- Moody's Investors Service downgraded its debt ratings of Fremont General Corporation (senior to B3 from B2) and subsidiaries including its bank subsidiary, Fremont Investment & Loan (bank financial strength rating to E+ from D-, deposits to B1 from Ba3, issuer rating to B2 from B1), and Fremont General Financing I (preferred stock to Caa2 from Caa1). Moody's also kept the ratings under review for possible downgrade. The downgrades follow the announcement that Fremont obtained a cease and desist order from the FDIC, and in response Fremont has announced its exit from the sub-prime business and will attempt to sell it. The cease and desist order also requires Fremont to make sizable changes to its other business which is making commercial real estate loans without recourse or limited recourse to its customers. Amongst the requirements of the cease and desist order is that Fremont Investment and Loan be prohibited to receive or renew brokered deposits which makes up approximately 16% of the bank's deposits and funds approximately 12% of its assets. Other requirements of the order include a plan to increase the bank's capital ratios and limiting payment of cash dividends by Fremont Investment and Loan without prior written consent from its regulators. The downgrades were in response to Fremont's reduced financial flexibility as it attempts to sell its sub-prime mortgage business and meet the requirements of its regulatory order. This reduced flexibility could increase liquidity challenges at both the bank (Fremont Investment and Loan) and the holding company (Fremont General Corporation). "The bank's deposits exceed unencumbered assets, while its ability to obtained secured funding could be reduced by increased margin requirements" said Moody's Sean Jones, Senior Vice President and lead analyst on Fremont. "The holding company's $165 million of senior debt does not mature until March 17, 2009, however, Moody's believes the holding company would have limited ability to meet potential one year's cash obligations", said Mr. Jones. Moody's also placed Fremont's ratings under review for possible downgrade. The review will focus on Fremont's ability to defend its liquidity profile. A positive ratings factor would be a successful sale of Fremont's assets so that capital levels would not be meaningfully impaired and the cash receipts would improve the probability of Fremont's meeting its debt obligations. Ratings downgraded included: - Fremont General Corporation -- senior debt to B3 from B2. - Fremont Investment and loan -- bank financial strength rating to E+ from D-, long-term deposits to B1 from Ba3, and issuer rating and other senior obligations to B2 from B1. - Fremont General Financing I -- preferred stock to Caa2 from Caa1. Fremont had reported consolidated assets of $12.8 billion as of September 30, 2006. It is headquartered in Santa Monica, California. FREMONT INVESTMENT: DBRS Cuts Senior Loan's Rating To B (high) -------------------------------------------------------------- Dominion Bond Rating Service downgraded all the ratings of Fremont General Corporation and its subsidiaries, including Fremont's Issuer and Senior Debt rating to B (low) from B (high). DBRS also downgraded Fremont Investment & Loan's Deposits & Senior Debt rating to B (high) from BB (low). All ratings remain Under Review with Negative Implications. These actions follow the company's announcement that it expects Fremont Investment and the company's wholly owned subsidiary, Fremont General Credit Corporation, will enter into a voluntary formal agreement, to be designated as a cease and desist order, with the Federal Deposit Insurance Corporation. Along with the details of the proposed C&D, the company announced that it will exit the subprime mortgage business. Among other things, the C&D calls for the Company to make a variety of changes designed to restrict the level of lending in its subprime residential mortgage business, constrains its commercial real estate lending, limits the payments of cash dividends to Fremont by Fremont Investment without regulator approval and includes a 14% Tier 1 capital ratio requirement on Fremont Investment's total assets. DBRS believes that the cash dividend limitation weakens the liquidity position of Fremont, which accounts for the two-notch differential between Fremont's rating and that of Fremont Investment. Moreover, capitalization and financial flexibility will be pressured by the 14% Tier 1 capital requirement set out in the proposed order. DBRS is concerned that the terms of the Order, along with any continued high level of repurchase requests caused by early payment defaults, will negatively affect the company's prospects of a timely and favorable sale of the subprime mortgage business. Fremont's commercial real estate lending operations have provided a level of business and revenue diversification. Although this business continues to perform well, DBRS is concerned that the limitations included in the C&D will weaken the performance of this unit, putting further pressure on the ratings. Although Fremont has yet to file its Form 10-K, it is expected that the Company will report a net loss from continued operations for the fourth quarter of 2006, attributed to an increase of provisions for loan repurchase and premium recapture. Fremont is still assessing the full-year results. DBRS believes that the increased provisions may have a sizable impact on the Company's financial flexibility; however, uncertainties remain until the form is actually filed. DBRS sees the impact of these uncertainties being exacerbated by the current deteriorating market conditions in the residential subprime mortgage industry. DBRS is concerned that this delay and any prolonged delays in filing financial results will have a significant impact on the Company's ability to access funding. Moreover, DBRS is concerned about the weakening fundamentals of Fremont, which have been negatively affected by rising costs associated with the high level of repurchase requests attributed to the elevated level of early payment defaults. In 2006, performance has deteriorated throughout the subprime mortgage sector; however, delinquency and foreclosure rates in securitizations backed by Fremont collateral were among the highest in the sector. Although the Company has taking steps to stem the early payment defaults, DBRS believes that any continuation of the high level of repurchased loans could substantially weaken the Company's balance sheet, leading to potential writedowns of on-balance-sheet residential loans. Importantly, the deterioration of the balance-sheet assets may have a significant impact on liquidity and capital. The Under Review with Negative Implications status is based on the uncertainties associated with the delay in releasing financial results and the liquidity ramifications of any additional delays in filing Form 10-K. DBRS sees the impact of these uncertainties being exacerbated by the current deteriorating market conditions in the residential subprime mortgage industry. DBRS's review will focus on the Company's progress in releasing its financial results and filing its Form 10-K, on its progress in exiting the subprime business and on its ability to manage its liquidity and limit deposit outflows given the headlines and constraints on the broker deposits included in the C&D, as well as the company's success in curtailing the pace of early payment default repurchase activity and improving credit quality. FREMONT INVESTMENT: Moody's Puts Rating on Review & May Downgrade ----------------------------------------------------------------- Moody's Investors Service has downgraded the servicer quality rating of Fremont Investment & Loan as a primary servicer of subprime loans to SQ4+ from SQ3+. Additionally, Moody's has placed the rating on review for possible further downgrade. The action is prompted by the company's announcement on March 2, 2007, that it was subject to a proposed cease and desist order from the Federal Deposit Insurance Corporation. As a result of this announcement, the company declared its intention to exit the subprime residential mortgage business. Moody's believes that the announcement has a significant negative impact on the servicing operations. Moody's will assess whether the performance of residential mortgage-backed securities backed in whole or in part by loans serviced by Fremont may be impacted. Although it is too soon to determine which specific transactions may be affected, the level of impact will depend primarily upon the proportion of loans serviced by Fremont as well as the performance of such loans. As with all ratings, Moody's will continue to monitor the performance and take rating actions as appropriate. Fremont Investment & Loan is a California-chartered industrial bank which operates through three reportable business segments: Residential Real Estate, Commercial Real Estate, and Retail Banking. Moody's SQ ratings represent its view of a servicer's ability to prevent or mitigate asset pool losses across changing markets. The rating scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a "+" or "-" modifier will be appended to the relevant rating to indicate a servicer's relative servicing quality within a particular category. Moody's servicer ratings are differentiated in the marketplace by focusing on performance measurement. SQ ratings for U.S. residential mortgage servicers incorporate assessments of delinquency transition rates, foreclosure timeline management, loan cure rates, recoveries, loan resolution outcomes, and REO management - all critical indicators of a servicer's ability to maximize returns from mortgage portfolios. Moody's servicer ratings also consider the company's ability to maintain its focus on high quality servicing in an economic downturn. Servicing operations can be stressed by increasing the number of delinquent loans while at the same time increasing the need for liquidity. The SQ rating reflects our expectation of the impact that the servicing will have on the on-going credit performance of the portfolio. For this reason, Moody's monitors SQ ratings based on periodic information provided by servicers and conducts a formal re-evaluation of its servicer ratings annually. GABRIEL DEHARO: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Gabriel DeHaro Marisela Fraire 262 Ben Putnam Road Resaca, GA 30735 Bankruptcy Case No.: 07-40563 Type of Business: The Debtor filed for chapter 11 protection on May 2, 2006 (Bankr. N.D. Ga. Case No. 06-40730). Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Rome) Debtors' Counsel: Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, Northeast Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' 11 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Acousto-Optics $20,465 Bob Fair 1145 Corner Road Powder Springs, GA 30127 Regions Bank 122 Bellwood Drive $10,500 P.O. Box 2521 Birmingham, AL 35287 Lexus Financial Services Lexus $9,104 P.O. Box 5855 Carol Stream, IL 60197-5855 SunTrust Bank 1999 Nissan $7,000 Pathfinder Bank of America Business Credit $4,122 Card Sheffield Financial $2,557 First National Bank of Omaha State Taxes $2,107 Office of the U.S. Trustee Trustee Fees $750 Emergency Coverage Corp. Medical Bill $443 Hamilton Medical Center Medical Bill $107 American First Federal Unknown GREAT ATLANTIC: Pathmark Purchase Prompts Moody's Ratings Review ---------------------------------------------------------------- Moody's Investors Service placed the long term ratings of The Great Atlantic & Pacific Tea Co. under review for possible downgrade and affirmed the Speculative Grade Liquidity Rating of SGL-3 following the company's announcement on March 5,, 2007 that it has reached a definitive merger agreement to acquire Pathmark Stores, Inc. for $1.3 billion in cash, stock and debt assumption and retirement. The contemplated merger of A&P and Pathmark could result in a more highly leveraged entity with modest profitability that operates in highly competitive trade areas of the Northeast region of the country. Ratings placed under review for possible downgrade: The Great Atlantic & Pacific Tea Company, Inc.: * Corporate Family rating of B3; * Probability of Default rating of B3; * Senior unsecured notes of Caa1 (LGD5-73%); * Multi-seniority shelf at (P)Caa1 for senior, (P)Caa2 for subordinated, (P)Caa2 for junior subordinated, and (P)Caa2 for preferred stock. A&P Finance I, A&P Finance II and A&P Finance III: * Trust preferred securities shelf at (P)Caa2 Ratings affirmed: The Great Atlantic & Pacific Tea Company, Inc.: * Speculative Grade Liquidity rating of SGL-3. Moody's review of A&P's long term ratings will focus on: (1) the resulting capital structure of the combined company, (2) interim operating performance of A&P prior to the completion of the merger transaction , with particular focus on profitability and comparable store sales, (3) financial policy and liquidity profile, (4) evaluation of potential synergies and (5) the integration risk of merging the Pathmark operations into the A&P operations in a highly competitive and consolidating supermarket industry. If A&P's operating performance were to deteriorate significantly prior to the closing of the transaction, A&P's ratings could potentially be downgraded. Notwithstanding potential changes to A&P's liquidity profile as part of the transaction, the affirmation of A&P's SGL-3 rating reflects Moody's expectation that the company will maintain adequate liquidity, and that its internally generated cash flow along with borrowings under its current committed revolving credit facility should be sufficient to fund its capital expenditures, seasonal working capital needs and for the opening of any letters of credit, to the extent that they are not opened under the company's separate $200 million arrangement that requires cash collateral. The Great Atlantic & Pacific Tea Company, Inc., headquartered in Montvale, New Jersey, operates 410 supermarkets in 9 states and the District of Columbia. The company generated approximately $6.8 billion in revenue for the twelve months ended December 2, 2007. GS MORTGAGE: Moody's Ups Rating on Class K-PR Certificates to Ba3 ----------------------------------------------------------------- Moody's Investors Service upgraded the ratings of four classes and affirmed the ratings of three classes of GS Mortgage Securities Corporation II, Commercial Mortgage Pass-Through Certificates, Series 2005-GSFL VII as: - Class X, Notional, affirmed at Aaa - Class B, $5,646,278, Floating, affirmed at Aaa - Class C, $32,123,000, Floating, affirmed at Aaa - Class D, $16,062,000, Floating, upgraded to Aaa from Aa1 - Class E, $26,533,000, Floating, upgraded to Aa2 from A2 - Class F, $20,425,000, Floating, upgraded to Baa2 from Baa3 - Class K-PR, $1,000,000, Floating, upgraded to Ba3 from B1 As of the February 6, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 81.9% to $118.9 million from $655.9 million at securitization as the result of the payoff of four loans and amortization associated with one loan. The Certificates are collateralized by three senior participation interests. The loans range in size from 14.3% to 49.5% of the pool based on current principal balances. Moody's current weighted average loan to value ratio is 60.5%, compared to 64.0% at Moody's last full review in August 2006 and compared to 64.7% at securitization. Moody's is upgrading pooled Classes D, E and F due to increased credit support. Moody's is upgrading non-pooled Class K-PR due to the improved performance of the Pittsburgh Renaissance Loan. The Sands Expo Convention Center Loan (49.5%) is secured by a 1.14 million square foot exposition and convention center located in Las Vegas, Nevada. The property is affiliated and physically attached to the Venetian Hotel. Although the facilities operate separately, there is a joint marketing agreement with the Venetian whereby SECC markets the hotel as the "headquarters hotel" for SECC events and the Venetian in turn promotes the use and occupancy of the SECC. Moody's LTV is 53.4%, compared to 56.5% at last review and compared to 53.5% at securitization. Moody's current shadow rating is A3, compared to Baa1 at last review. The Worldgate Plaza Loan (36.2%) is secured by a four-building Class A office complex located in Herndon, Virginia. The property was built in 2000, totals 322,328 square feet of net rentable area and has direct frontage on the Dulles Toll Road. The property is currently 93.7% leased, compared to 75.0% at securitization. The two largest tenants, Verizon Avenue (parent company Verizon Communications; Moody's senior unsecured rating A3 -- stable outlook) and SAVVIS Communications, comprise 50.0% of the building's total net rentable area. Moody's LTV is 65.1%, compared to 68.4% at last review and compared to 67.5% at securitization. Moody's current shadow rating is Baa2, compared to Baa3 at last review. The Pittsburgh Renaissance Loan (14.3%) is secured by a 300-room full-service hotel located in downtown Pittsburgh, Pennsylvania. The hotel opened in 2001, following a $50 million conversion of the landmark Fulton Building, originally constructed in 1906. RevPAR for calendar year 2006 was $107.96, compared to $98.20 at securitization. Although the hotel's performance has improved since Moody's last review, profit margins have decreased since securitization. Moody's LTV is 73.6%, compared to 81.2% at last review and compared to 66.9% at securitization. Moody's current shadow rating for the pooled debt is Ba2, compared to B1 at last review. GSAA HOME: Moody's Rates Class B-4 Certificates at Ba2 ------------------------------------------------------ Moody's Investors Service has assigned a rating of Aaa to the senior certificates issued by GSAA Home Equity Trust 2007-3, and ratings ranging from Aa1 to Ba2 to the mezzanine and subordinate certificates in the deal. The securitization is backed by adjustable-rate, Alt-A residential mortgage loans originated or acquired by Goldman Sachs Mortgage Company (30.88%), GreenPoint Mortgage Funding, Inc. (28.54%), Countrywide Home Loans, Inc. (20.02%), First National Bank of Nevada (10.84%), and IndyMac Bank, F.S.B. (9.72%). The ratings are based primarily on the credit quality of the loans and on the protection against credit losses provided by subordination, overcollateralization, excess spread, and interest rate swap agreements. Moody's expects collateral losses to range from 1.10% to 1.30%. Avelo Mortgage, L.L.C., GreenPoint Mortgage Funding, Inc., Countrywide Home Loans Servicing, L.P., and IndyMac Bank, F.S.B. will service the loans. Wells Fargo Bank, N.A. will act as master servicer. Moody's has assigned IndyMac Bank, F.S.B. its servicer quality rating of SQ2 as primary servicer of prime mortgage loans. Furthermore, Moody's has assigned Wells Fargo Bank N.A. its top servicer quality rating of SQ1 as master servicer. The complete rating actions are: GSAA Home Equity Trust 2007-3 Asset-Backed Certificates, Series 2007-3 * Cl. 1A1A, Assigned Aaa * Cl. 1A1B, Assigned Aaa * Cl. 1A2, Assigned Aaa * Cl. A4A, Assigned Aaa * Cl. A4B, Assigned Aaa * Cl. 2A1A, Assigned Aaa * Cl. 2A1B, 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 A2 * Cl. B-1, Assigned A3 * Cl. B-2, Assigned Baa2 * Cl. B-3, Assigned Baa3 * Cl. B-4, Assigned Ba2 GSAA HOME: Moody's Rates Class B3 Certificates at Ba2 ----------------------------------------------------- Moody's Investors Service has assigned a rating of Aaa to the senior certificates issued by GSAA Home Equity Trust 2007-2, and ratings ranging from Aa1 to Ba2 to the mezzanine and subordinate certificates in the deal. The securitization is backed by fixed-rate, Alt-A residential mortgage loans originated or acquired by SunTrust Mortgage, Inc (36.68%), Goldman Sachs Mortgage Company (28.98%), HSBC Mortgage Corporation (16.73%), GreenPoint Mortgage Funding (14.44%), and one other originator (3.18%). The ratings are based primarily on the credit quality of the loans and on the protection against credit losses provided by subordination, overcollateralization, and excess spread. Moody's expects collateral losses to range from 1.25% to 1.45%. Avelo Mortgage, L.L.C., GreenPoint Mortgage Funding, Inc., HSBC Mortgage Corporation (USA), and SunTrust Mortgage, Inc. will service the loans. Wells Fargo Bank, N.A. will act as master servicer. Moody's has assigned SunTrust Mortgage, Inc. its servicer quality rating of SQ2+ as primary servicer of prime mortgage loans. Furthermore, Moody's has assigned Wells Fargo Bank N.A. its top servicer quality rating of SQ1 as master servicer. The complete rating actions are: GSAA Home Equity Trust 2007-2 Asset-Backed Certificates, Series 2007-2 * Cl. AV1, Assigned Aaa * Cl. AF2, Assigned Aaa * Cl. AF3, Assigned Aaa * Cl. AF4A, Assigned Aaa * Cl. AF4B, Assigned Aaa * Cl. AF5A, Assigned Aaa * Cl. AF5B, Assigned Aaa * Cl. AF6A, Assigned Aaa * Cl. AF6B, Assigned Aaa * Cl. M1, Assigned Aa1 * Cl. M2, Assigned Aa2 * Cl. M3, Assigned Aa3 * Cl. M4, Assigned A1 * Cl. M5, Assigned A2 * Cl. M6, Assigned A3 * Cl. B1, Assigned Baa1 * Cl. B2, Assigned Baa3 * Cl. B3, Assigned Ba2 GULF COAST: Confirmation Hearing Scheduled on April 16 ------------------------------------------------------ The U.S. Bankruptcy Court for the Northern District of Texas in Dallas will convene a hearing at 1:15 p.m., on April 16, 2007, to consider confirmation of Gulf Coast Holdings Inc.'s Chapter 11 Plan of Liquidation. Summary of the Plan The Debtor will transfer the $4.2 million proceeds of the sale of substantially all of its assets to a Liquidating Trust created under the Plan. The Trustee will liquidate any remaining assets. On the effective date, a Liquidating Trust will be formed. A Liquidating Trust Board will also be established consisting of a minimum of two and a maximum of five persons who are either members of the Creditors Committee or creditors of the Debtor. These persons wish to serve on the Board and have a claim on the effective date. Treatment of Claims Administrative Claims, Priority Tax Claims, and Class 1 Unsecured Non-Tax Priority Claims will be paid in full at the later of the effective date or the date the claim becomes an allowed claim. At the sole discretion of the Debtors, Allowed Class 2 Secured Claim Holders will either (a) receive the collateral securing the Secured Claim, or (b) be paid in full and in Cash, plus interest, as determined by the Bankruptcy Court, as soon as reasonably practicable after the later of (i) the Initial Distribution Date or (ii) the date that the Claim becomes an Allowed Claim. Holders of Allowed Class 3 Convenience Claims will be paid 50% of the amount of the Allowed Convenience Claim in cash and in full at the later of (a) the Initial Distribution Date or (b) the date that the Claim becomes an Allowed Claim, in full satisfaction of the Allowed Convenience Claim. Holders of Allowed Class 4 General Unsecured Claims will receive a pro rata distribution of the remaining cash proceeds in the Trust after all claims in Classes 1, 2, and 3 have been paid in full. In the event that Class 4 Holders will be paid in full, they will be entitled to receive interest calculated at the then-applicable federal rate of interest as of the effective date. Holders of Class 5 Equity Interests will only receive the remaining proceeds on a pro rata basis from the Trust if Holders of Classes 1, 2, 3, and 4 are paid in full plus interest. A full-text copy of the Debtor's disclosure statement is available for a fee at: http://www.researcharchives.com/bin/download?id=060911215522 About Gulf Coast Headquartered in Conroe, Texas, Gulf Coast Holdings, Inc., filed for bankruptcy protection on April 28, 2006 (Bankr. N.D. Tex. Case No. 06-31695). Daniel I. Morenoff, Esq., and Jeffrey R. Fine, Esq., at Hughes & Luce, LLP, represent the Debtor in its restructuring efforts. The Debtor has employed David Hull as its chief restructuring officer. J. Frasher Murphy, Esq., Jaime Myers, Esq., and Phillip L. Lamberson, Esq., at Winstead, Sechrest & Minick represent the Official Committee of Unsecured Creditors. In its schedules filed with the Court, the Debtor reported assets amounting to $18,258,575 and debts totaling $19,553,664. HALLMARK TECHNOLOGIES: Trustee Rejects Kattula's $8.8 Mil. Offer ---------------------------------------------------------------- Robert Kattula's $8.8 million offer for Hallmark Technologies Inc. fell through last week after the court-appointed receiver failed to accept the deal, Canadian Plastics reports. Mr. Kattula, owner of US Industrial Services, had also offered an additional $3 million for equipment upgrade at the facility. Canadian Plastics relates that the offer expired on Feb. 27, 2007, after Mr. Kattula failed to receive a response from Grant Thornton Ltd., the company's trustee. Canadian Plastics cites Jonathan Krieger, Grant Thornton corporate recovery and insolvency vice president, as confirming that the trustee chose not to accept Mr. Kattula's offer and that details of the decision will be disclosed "in due course." Hallmark stopped operations on Feb. 15, 2007, citing irreconcilable debt, Canadian Plastics relates. The company had owed approximately $10 million to secured creditors and was also unable to pay its 331 unsecured creditors, owed almost $35 million. The first meeting of the creditors of the bankrupt organization is scheduled to take place on March 9 at a Windsor area hotel. Hallmark Technologies Inc. designs, engineers and manufactures advanced custom steel molds. The company is composed of two key divisions, Hallmark Tools and Hallmark Manufacturing. Hallmark sells its molds to customers throughout the world. HAWKER BEECHCRAFT: Moody's Rates Proposed $1.85 Bil. Loan at Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned a Ba3 first time rating to Hawker Beechcraft Acquisition Company LLC's proposed $1.85 billion senior secured credit facility consisting of a $1.2 billion term loan due 2014, a $400 million revolver due 2013 and a $250 million synthetic letter of credit facility due 2014. Also, Moody's assigned a B3 rating to the company's proposed $800 million senior unsecured notes due 2015, a Caa1 rating to the company's senior subordinated notes due 2017, a B2 Corporate Family Rating, and a Speculative Grade Liquidity Rating of SGL-3. The rating outlook is stable. The purpose of the proposed notes and credit facilities is to partially fund the acquisition of the company by equity sponsors GS Capital Partners and Onex Partners. In December of 2006, GSCP and Onex signed a definitive agreement to acquire Raytheon Aircraft Company, a segment of Raytheon Company for $3.4 billion in cash. The acquisition is expected to be funded through the use of about $2.4 billion of debt and $1.0 billion of cash equity. The acquired entity, which excludes Raytheon's Flight Options and commuter business, has been renamed Hawker Beechcraft, Inc. The ratings reflect Hawker Beechcraft's high debt levels relative to its earnings base and projected retained cash flows, modest interest coverage, and thin free cash flows anticipated in FY 2007, due to working capital requirements in support of the initial deliveries of Hawker 4000 and other aircraft deliveries. Moody's estimates pro forma leverage of approximately 6 times Debt/EBITDA and EBIT/Interest coverage of approximately 1.2 times upon close. Such credit metrics are consistent with the B2 Corporate Family Rating. Moody's notes that the company's cash flow generation in FY 2007 and its ability to repay debt over this period will be highly dependent on proceeds generated from aircraft deliveries in the fourth quarter alone. Assumed inventory reduction is based on a substantial level of planned fourth quarter aircraft deliveries as well as increased sales of used aircraft. Any delay in planned deliveries would result in more limited debt repayment, forestalling improvement in financial metrics. The ratings positively consider the company's substantial revenue base, its strong backlog and recent booking activity amidst a strong economic environment, and a small degree of diversification provided by Hawker Beechcraft's Customer Support and military Trainer businesses. Hawker Beechcraft is a long established provider of products to the business aircraft and general aviation sector, and this should allow the company to maintain its strong market position and favorable operating margins. While the company's revenue base and backlog are characteristic of higher rated credits, the more modest financial metrics resulting from its leveraged capital structure, result in the assignment of the B2 Corporate Family Rating. The Speculative Grade Liquidity Rating of SGL-3 reflects Moody's assessment of Hawker Beechcraft's liquidity position as adequate relative to its near term working capital and CAPEX requirements. Moody's expects that cash balances and cash flows will not likely cover all anticipated working capital needs at all times throughout the next twelve months. However, the company is expected to have full access to a sizeable revolving credit facility to cover seasonal working capital requirements. The stable rating outlook anticipates that Hawker Beechcraft will meet planned delivery levels and operating margins through FY 2007 such that financial metrics will remain approximately at pro forma levels and that any required drawings on the revolving credit facility, although possibly sizeable, will only be short term in nature. Moody's does not expect debt to be meaningfully reduced over the near term. Ratings or their outlook could be subject to upward revision if the company's free cash flow strengthens materially, possibly from improved margins or accelerated sales levels, which may result in substantial reduction in debt such that Debt/EBITDA were to fall below 5.5 times, EBIT/Interest were to exceed 1.8 times, and retained cash flow were to exceed 10% of total debt for a sustained period. Conversely, ratings or their outlook could be lowered if sales stagnate or margins fall, particularly if the company encounters trouble with the delivery of its Hawker 4000 series aircraft, resulting in a greater reliance on its credit facility and deterioration in liquidity condition. Ratings also could be lowered if the company increases debt levels for any reason, such that Debt/EBITDA were to exceed 7.0 times, EBIT/Interest were to fall below 1.0 time, or retained cash flow were to fall below 5% of debt. These ratings have been assigned: Hawker Beechcraft Acquisition Company LLC: * Senior secured credit facilities at Ba3 (LGD2, 26%) * Senior unsecured notes at B3 (LGD5, 74%) * Senior subordinated notes at Caa1 (LGD6, 93%) * Corporate Family Rating of B2 * Probability of Default Rating of B2 * Speculative Grade Liquidity Rating of SGL-3 Hawker Beechcraft Acquisition Company LLC, a 100%-owned subsidiary of Hawker Beechcraft, Inc., is headquartered in Wichita, Kansas, and is a leading manufacturer of business jets, turboprops and piston aircraft for businesses, governments, and individuals worldwide. The company operates in three business segments: Business and General Aviation, Trainer aircraft, and Customer Support. HAWKER BEECHCRAFT: High Debt Leverage Cues S&P's B+ Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to general aviation aircraft manufacturer Hawker Beechcraft Inc. The outlook is stable. At the same time, S&P assigned its 'BB-' bank loan rating and '1' recovery rating, indicating high expectation of full (100%) recovery of principal in the event of a payment default, to the company's proposed $1.85 billion senior secured credit facilities. The financing consists of a: * $400 million revolving credit facility, * $1.2 billion term loan, and * $250 million pre-funded synthetic letter-of-credit facility. The borrowers under the facilities are Hawker Beechcraft Acquisition Co. LLC and Hawker Beechcraft Ltd., both wholly owned subsidiaries of Hawker Beechcraft Inc. In addition, S&P assigned 'B-' ratings to Hawker Beechcraft Acquisition Co. LLC and Hawker Beechcraft Notes Co.'s proposed $800 million senior unsecured notes due 2015 and $400 million subordinated notes due 2017, both offered under Rule 144A with registration rights. Proceeds of the term loan and debt offerings, combined with about $1 billion of cash contribution from GS Capital Partners and Onex Partners (equity sponsors) will be used to fund the $3.3 billion acquisition of Raytheon Aircraft Co. (to be renamed Hawker Beechcraft Inc.) from Raytheon Co. (BBB+/Stable/A-2). "The corporate credit rating on Hawker Beechcraft reflects high debt leverage, weak credit protection measures, risks associated with cyclical demand for general aviation planes, and modest, albeit improving, profit margins," said Standard & Poor's credit analyst Roman Szuper. "Those factors outweigh the firm's position as a well-established, major manufacturer of business jets, turboprops, and piston aircraft, currently favorable industry conditions, and adequate liquidity." Wichita, Kan.-based Hawker Beechcraft's business and general aviation aircraft segment (about 70% of 2006 sales) is reasonably well positioned in its market, although the firm's product line is not as complete as that of its primary competitor. Still, initial deliveries of the recently certified Hawker 4000 business jet scheduled for the second half of 2007 and planned derivative models to broaden the portfolio should improve the company's competitive position. Relatively steady aftermarket spare parts, maintenance, and services (about 15% of revenues) enhance stability. Some diversity is provided by production of a primary trainer aircraft for the U.S. Air Force and Navy under a sole- source, long-term contract (15%). A generally favorable market environment, growing backlog, improving operating efficiency, and expected debt reduction should strengthen the financial profile and help Hawker Beechcraft maintain appropriate credit quality. Outlook revisions to either positive or negative are not likely in the near term. HAWKS LANDING: Case Summary & Eight Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Hawks Landing II Corp. 13015 Northeast 4th Terrace Okeechobee, FL 34972 Bankruptcy Case No.: 07-11464 Chapter 11 Petition Date: March 5, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Jay M. Gamberg, Esq. Gamberg & Abrams 4000 Hollywood Boulevard, Suite 350 North Hollywood, FL 33021 Tel: (954) 981-4411 Fax: (954) 966-6259 Total Assets: $4,026,044 Total Debts: $2,465,826 Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Howard Wong and Steve Wang Sales Agreement $82,500 c/o Joshua E. Burnett, Esq. Burnett & Thomas, P.A. 501 East Jackson Street Suite 200 Tampa, FL 33602 Ellis Crisson Loan $35,506 13015 Northeast 4th Terrace Okeechobee, FL 34972 Sean Crep Land Sales $19,800 c/o Erik Crep, Esq. Agreement 3265 Virginia Street, Suite 23 Miami, FL 33133 Erik Crep Land Sales $18,400 Agreement Gary Crep & Melanie Crep Land Sales $18,400 Agreement Primera Lobbe Land Sales $17,000 Agreement American Asphalt Paving Goods and $10,000 Services, Inc. Services Burnett & Thomas, P.A. Legal Fees $8,070 INEX PHARMA: Likely to Complete Tekmira Spinout on March 31 ----------------------------------------------------------- Inex Pharmaceuticals Corporation is working to close the spinout of Tekmira Pharmaceuticals Corporation on March 31, 2007 concurrent with the end of the company's first quarter. "We are extending the closing of the Tekmira spin-out as a practical matter to line up the spin-out with the close of our financial quarter to ensure a cost-effective and smooth transition from INEX to Tekmira," Timothy M. Ruane, President and Chief Executive Officer of INEX, said. On Sept. 20, 2006, shareholders of INEX voted 99.3% in favor of spinning out all of the company's technology, products, cash and partnerships into Tekmira. INEX has also received all of the necessary court approvals to successfully complete the spinout. Highlights of the spinout include transferring to Tekmira: * All of INEX's pharmaceutical assets including all intellectual property and product rights; * All of INEX's cash; * INEX's pharmaceutical partnerships with Hana Biosciences, Inc., Alnylam Pharmaceuticals, Inc., Aradigm Corporation and Esperion Therapeutics, Inc., a division of Pfizer Inc. All of the Tekmira shares will be distributed to INEX common shareholders and INEX's current management team and employees will join Tekmira in the same positions they occupy in INEX. Concurrent with the spinout of Tekmira, INEX will consolidate its commons shares on the basis of two current common shares for one new common share. The completion of the spinout of Tekmira will allow INEX, having no pharmaceutical assets, to complete a financing with an investor group led by Sheldon Reid, a co-founder of Capitol Energy Resources Limited. The Investor Group will invest up to $5.6 million in INEX by way of convertible debentures. Upon conversion of the debenture following the completion of the reorganization, the Investor Group will hold 100% of non-voting shares in INEX and 80% of the total number of shares outstanding. Therefore, current INEX common shareholders will own 20% of the equity of INEX and 100% of the Tekmira shares. The Investor Group plans to raise additional capital and acquire a new business for INEX. The money received by INEX as part of the corporate reorganization will be paid to the previous holders of INEX's convertible debt as per the note purchase and settlement agreement dated June 20, 2006. About INEX Pharmaceuticals Based in Vancouver, Canada, Inex Pharmaceuticals Corporation (NASDAQ: HNAB) (TSX: IEX) -- http://www.inexpharma.com/-- is a biopharmaceutical company developing and commercializing proprietary drugs and drug delivery systems to improve the treatment of cancer. At Sept. 30, 2006, Inex Pharmaceuaticals disclosed total assets of $8,915,832 and total liabilities of $8,982,462, resulting in a $66,630 deficit. Shareholders' deficit was $3,878,468 at June 30, 2006. INNOVATIVE COMMUNICATION: Court Appoints Chapter 11 Trustee ----------------------------------------------------------- The U.S. District Court of the Virgin Islands, Bankruptcy Division, approved the U. S. Trustee for Region 21's appointment of Stan Springel of Alvarez & Marsal as Chapter 11 Trustee of Innovative Communications, Co., LLC, and Emerging Communications, Inc. Rural Telephone Finance Cooperative and Greenlight Capital Qualified, L.P., Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd., supported the U.S. Trustee's request. Prior to making the appointment, the U.S. Trustee consulted with: (1) William R. Greendyke, Esq., of Fulbright & Jaworski, LLP, representing Rural Telephone Finance Coorperative; (2) Gregg M. Galardi, Esq., of Skadden, Arps, Slate, Meagher & Flom, LLP, representing the Greenlight entities; (3) Gregory H. Hodges, Esq., of Dudley, Topper & Feuerzeig, LLP, representing Banco Popular de Puerto Rico; (4) Scott C. Shelley, Esq., of Shearman & Sterling, LLP, representing the Debtor; (5) Jeffrey B. C. Moorehead, Esq., representing the Public Services Commission; and (6) Kevin A. Rames, Esq., representing Innovative Communications Corporation and certain of its subsidiaries. The U.S. Trustee noted (i) that there has been virtually no progress in the Debtors' cases even though the involuntary petitions were filed in February 2006, (ii) that the Debtors are failing to exercise their fiduciary responsibility to timely rehabilitate their cases, and (iii) that, because the Debtors have lost the trust of the creditors, there will be no progress as long as the Debtors remain solely responsible for the disposition of estate assets. The RTFC and the Greenlight Entities told the Court that they have no confidence and trust in Jeffrey J. Prosser, the owner of Emerging Communications and Innovative Communications; and those members of the boards of directors of his corporations who, like him, were found to have breached their fiduciary duties to Greenlight. The RTFC also points out that, since 1987, it has been the primary lender to the Prosser entities for over $500 million, which loans are secured by guarantees and stock pledges, all of which are now in default even though the RTFC extended due dates and renegotiated certain of the loans several times. The RTFC's judgments exceed $500 million. The Court overruled the objection filed by the Public Service Commission and the Debtors. The PSC and the Debtors asserted that appointment of a trustee will effect an indirect change of control that will violate Virgin Islands law because it has not received the prior approval of the PSC. The Debtors had suggested that appointing a responsible officer, rather than a trustee, would serve everyone's best interests. But the Court didn't buy it. About Innovative Headquartered in St. Thomas, Virgin Islands, Innovative Communication Company, LLC -- http://www.iccvi.com/-- and Emerging Communications, Inc., are diversified telecommunications and media companies operating mainly in the U.S. Virgin Islands. Jeffrey J. Prosser owns Emerging Communications and Innovative Communications. Innovative and Emerging filed for Chapter 11 protection on July 31, 2006 (D.C. V.I. Case Nos. 06-30007 and 06-30008). When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. Mr. Prosser also filed for chapter 11 protection on July 31, 2006 (D.C. V.I. Case No. 06-10006). Greenlight Capital Qualified, L.P., Greenlight Capital, L.P., and Greenlight Capital Offshore, Ltd., which holds an $18,780,614 claim against Mr. Prosser, had filed an involuntary chapter 11 petition against Innovative Communication, Emerging Communications, and Mr. Prosser on Feb. 10, 2006 (Bankr. D. Del Case Nos. 06-10133, 06-10134, and 06-10135). Mr. Prosser argued that the Greenlight entities, the former shareholders of Innovative Communications, and Rural Telephone Finance Cooperative, Mr. Prosser's lender, conspired to take down his companies into bankruptcy and collect millions in claims. IRON MOUNTAIN: Moody's Rates Proposed CDN$175 Mil. Sr. Notes at B3 ------------------------------------------------------------------ Moody's Investors Service assigned a B3 rating to the proposed CDN$175 million senior subordinated notes due 2019 of Iron Mountain Nova Scotia Funding Company, a Nova Scotia Unlimited Liability Company and an indirect subsidiary of Iron Mountain Incorporated. The notes are guaranteed by Iron Mountain and are rated the same as existing senior subordinated indebtedness and one notch lower than the B2 Corporate Family Rating. The B3 rating reflects Moody's expectation of loss-given-default greater or equal to 50% but less than 70% (LGD 4). The proposed notes are redeemable on a "make whole basis" in the first five years, at a premium between years five and eight and at par thereafter. Proceeds from the notes will be used to repay outstanding indebtedness and for general corporate purposes. Existing ratings are unaffected. Moody's believes that the proposed refinancing does not materially impact the credit profile of Iron Mountain. Despite meaningful improvement over the past two years, the Corporate Family Rating of B2 and instrument ratings continue to reflect high financial leverage, the significant amount of goodwill and intangibles to total assets and the relatively low level of pro forma free cash flow (defined as cash from operations less capital expenditures less dividends) relative to debt. The ratings also reflect a capital intensive business with most revenues deriving from paper document storage and related services which require significant customized physical space. The ratings are supported by solid interest coverage for the rating category of about 1.8 times in 2006 and adequate EBIT return on assets of about 7% in the same period. The ratings also reflect the company's prominent position as a global leader in information storage and data protection, including its strategic expansion in the digital market in recent years. The ratings also benefit from the company's historical revenue stability, geographical diversification and low customer concentration. The stable outlook reflects Iron Mountain's revenue stability and successful record of acquiring and integrating assets, the successful expansion in digital data storage and protection services, as well as the recent reduction in the rate of acquisitions. Solid operating margins, EBIT to interest coverage of 1.8 times and satisfactory EBIT return on average assets (about 7.7% in 2005 and about 7.0% for 2006) further support the stable outlook. The outlook is constrained by relatively narrow covenant cushions under the company's US credit facilities. Moody's took these rating actions: * Assigned a B3 (LGD4, 64%) rating to the proposed CDN$175 million senior subordinated notes due 2019; * Affirmed the B3 (LGD4, 64%) rated EUR225 million 6.75% Euro senior subordinated notes due 2018; * Affirmed the Ba2 (LGD1, 7%) rated $400 million IMI revolving credit facility; * Affirmed the Ba2 (LGD1, 7%) rated $312 million IMI term loan facility; * Affirmed the B3 (LGD4, 64%) rated $72 million 8.25% senior subordinated notes due 2010; * Affirmed the B3 (LGD4, 64%) rated $200 million 8.75% senior subordinated notes due 2018; * Affirmed the B3 (LGD4, 64%) rated $448 million 8.625% senior subordinated notes due 2013; * Affirmed the B3 (LGD4, 64%) rated $293.9 million 7.25% GBP senior subordinated notes due 2014; * Affirmed the B3 (LGD4, 64%) rated $439 million 7.75% senior subordinated notes due 2016; * Affirmed the B3 (LGD4, 64%) rated $316 million 6.625% senior subordinated notes due 2016; * Affirmed the (P)Ba2 (LGD2, 10%) rated secured drawings under the existing shelf; * Affirmed the (P)B3 (LGD4, 64%) rated subordinated draws under the existing shelf; * Affirmed the (P)Caa1 (LGD6, 97%) preferred stock draws under the existing shelf; * Affirmed the (P)B3 (LGD4, 64%) rated Trust preferred stock shelf; * Affirmed the B2 Corporate Family Rating; * Affirmed the B2 Probability of Default Rating. The Speculative Grade Liquidity rating is unchanged at SGL-3. The outlook for the ratings is stable. Headquartered in Boston, Massachusetts, Iron Mountain Incorporated is an international provider of information storage and protection related services. The company offers comprehensive records management and data protection solutions, along with the expertise to address complex information challenges such as rising storage costs, litigation, regulatory compliance and disaster recovery. Founded in 1951, Iron Mountain has more than 90,000 corporate clients throughout North America, Europe, Latin America, and Asia Pacific. Revenue for the twelve months ended December 31, 2006 was approximately $2.4 billion. IRON MOUNTAIN: S&P Rates Proposed CDN$175 Million Sr. Notes at B ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' rating to Iron Mountain Nova Scotia Funding Co.'s proposed CDN$175 million in senior subordinated notes maturing in 2019. Iron Mountain Nova Scotia Funding will be amalgamated into Iron Mountain Canada Corp. (unrated) when the two subsidiaries of Iron Mountain Inc. (IMI; B-/Stable/--) merge around the beginning of April 2007. The rating is two notches lower than the 'BB-' corporate credit rating on the parent company because the notes represent senior subordinated obligations. IMI and all of IMI's existing and future subsidiaries will guarantee the issue. The company will use proceeds from the transaction to pay down debt, including U.S. dollar borrowings, and for general corporate purposes. "The corporate credit rating on IMI is 'BB-', reflecting IMI's relatively high debt leverage, limited debt capacity for large acquisitions, and aggressive financial policies supporting its growth strategy," said Standard & Poor's credit analyst Andy Liu. "These factors are only partially offset by IMI's leading position in records management and its stable growth rate from existing and new customer accounts." Ratings List Iron Mountain Inc. Corporate Credit Rating BB-/Stable/-- New Rating Iron Mountain Nova Scotia Funding Co. Senior Subordinated Debt B JUAN DEHARO: Case Summary & Three Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Juan Jose DeHaro 124 Bellwood Drive Dalton, GA 30721 Bankruptcy Case No.: 07-40565 Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Rome) Debtor's Counsel: Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, Northeast Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alliance National Bank 1992 Chevrolet $4,018 210-214 West Morris Street P.O. Box 607 Dalton, GA 30722-0607 American First Federal Unknown 155 B Avenue, Suite 310 P.O. Box 232 Lake Oswego, OR 97034 Georgia Federal Credit Union 2000 Acura Integra Unknown 6705 Sugarloaf Parkway Suite 100 Duluth, GA 30097-4926 LEVEL 3: S&P Rates Proposed $1.4 Billion Senior Secured Loan at B ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned a 'B' bank loan rating, one notch above the corporate credit rating, to Level 3 Financing Inc.'s proposed $1.4 billion senior secured term loan due 2014. A recovery rating of '1' was also assigned to the loan, indicating our expectations for a full recovery of principal in the event of a payment default. The new senior secured term loan replaces Level 3 Financing's existing $730 million senior secured term loan. Upon closing of the new facility, the 'B-' bank loan rating and '1' recovery rating on the existing $730 million senior secured term loan will be withdrawn. The corporate credit rating on parent company, Level 3 Communications Inc., is 'B-' and the outlook is stable. Level 3 Financing is a wholly owned subsidiary of Level 3 Communications, a facilities-based provider of integrated communication services in the U.S. and Europe. At Dec. 31, 2006, Level 3 Communications' network included 46,000 intercity fiber route miles, approximately 25,000 metropolitan fiber route miles in 125 metropolitan markets, and 6,500 traffic aggregation points in North American and Europe. Debt outstanding at Dec. 31, 2007, pro forma for acquisitions since Jan. 1, 2007, and numerous financing transactions, including the recently completed $1 billion of senior note offerings and proposed $1.4 billion senior secured term loan totaled about $6.9 billion. Ratings List Ratings Assigned Level 3 Financing Inc. $1.4 Billion Senior Secured Credit Facility B Recovery Rating 1 LODGENET ENT: Moody's Rates Proposed $450 Mil. Sr. Facility at Ba3 ------------------------------------------------------------------ Moody's affirmed LodgeNet's B1 corporate family rating, B1 probability of default rating and stable outlook, following the announcement of the proposed financing for the acquisition of On Command, a sizable competitor of the company. Moody's also rated the proposed $450 million senior secured credit facility (which is comprised of a $50 million revolver, $75 million initial draw term loan, and $325 million delayed draw term loan) at Ba3 (LGD3 assessment), and lowered the senior subordinated notes to B3 (LGD5) consistent with Moody's Loss Given Default methodology. In addition Moody's confirmed the current senior secured facility rating at Ba1 (LGD2, to be withdrawn following the new financing). Moody's believes that the additional financial risk following the mostly debt-financed acquisition is mitigated by the operational benefits of the combined entity as well as the positive momentum of the company prior to the acquisition. LodgeNet's leverage is expected to increase to just above 4 times debt-to-EBITDA pro forma the transaction, compared to 3.1 times previously. LodgeNet's B1 corporate family rating continues to reflect the company's exposure to the lodging industry's inherent cyclicality, seasonality and volatility, as well as the company's dependence on the quality of film and television product, capital expenditure requirements, and thin fixed charge coverage. The rating is supported by LodgeNet's large installed room base and the consequent advantages of scale, potential for more modest future investment requirements than historically and diversification through new revenues streams, including services to healthcare facilities and travel centers. Affirm: * Corporate Family Rating B1 * Probability of Default Rating B1 * Outlook Stable Confirm to be withdrawn: * Senior Secured Credit Facility Ba1, LGD2, 16% Assign: * Proposed Senior Secured Credit Facility Ba3, LGD3, 32% Downgrade: * 9.5% Senior Sub Notes to B3, LGD5, 86% (from B2) LodgeNet Entertainment Corporation provides cable, video-on-demand and video game entertainment services to the lodging industry. LodgeNet maintains its headquarters in Sioux Falls, South Dakota. LUCKY WHITE: Case Summary & Seven Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Lucky R. White 8617 Lakeridge Circle Las Vegas, NV 89117 Bankruptcy Case No.: 07-11077 Chapter 11 Petition Date: March 5, 2007 Court: District of Nevada (Las Vegas) Debtor's Counsel: Randal R. Leonard, Esq. Randal R. Leonard, LLC 617 South Seventh Street Las Vegas, NV 89101 Tel: (702) 598-3667 Fax: (702) 598-3926 Total Assets: $5,554,000 Total Debts: $2,628,006 Debtor's Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Collect America Ltd. Agriculture $10,931 370 17th Street, Suite 5000 Cache 009/MBNA-MP Denver, CO 80202 Agriculture $6,651 Cache 009/MBNA-MP Bank of America Credit Card $4,729 P.O. Box 1598 Norfolk, VA 23501 Charge Account $4,729 [unknown debtor] Collection $1,375 Cr Bur S Bay Dist. Agriculture Soraya $417 510 Arizona Avenue Ann Ross MD Santa Monica, CA 90401 ER Solutions Collection - $164 Washington Mutual Shell/Citi Credit Card $157 California Business Agriculture Kaiser $114 LYONDELL CHEMICAL: Inorganic Biz Sale Cues Fitch to Hold Ratings ---------------------------------------------------------------- Fitch Ratings affirms the ratings for Lyondell Chemical Company, Equistar Chemicals L.P., Millennium Chemicals Inc. and Millennium America Inc. following Lyondell's announcement to sell its worldwide inorganic chemicals business for $1.2 billion, including the assumption of certain liabilities directly related to the business. The transaction is expected to include a cash payment of $1.05 billion, and result in after tax proceeds of $975 million. The affirmed ratings are: Lyondell -- Issuer default rating at 'BB-'; -- Senior secured credit facility and term loan at 'BB+'; -- Senior secured notes and debentures at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Senior subordinated notes at 'B'. Equistar -- Issuer default rating at 'B+'; -- Senior secured credit facility at 'BB+/RR1'; -- Senior unsecured notes at 'BB-/RR3'. Millennium Chemicals Inc.'s: -- Issuer Default Rating (IDR) at 'B+'; -- Convertible senior unsecured debentures at 'BB/RR2'. Millennium America Inc.: -- Issuer Default Rating (IDR) 'B+'; -- Senior secured credit facility and term loan 'BB+/RR1'; -- Senior unsecured notes 'BB/RR2'. At the same time, the Rating Outlook for Lyondell, Equistar and Millennium was revised to Positive from Stable. For Lyondell, approximately $5.0 billion of debt is covered; for Equistar, approximately $2.2 billion of debt is covered; and for Millennium Chemicals, approximately $853 million of debt is covered by these actions. The Positive Outlook reflects the likelihood that Lyondell will be able to accelerate its debt reduction efforts in the next 12-18 months. Additionally, supply/demand fundamentals continue to be favorable for most of Lyondell's products. Fitch also expects energy and raw material prices will continue to be volatile although these prices on average are expected to trend lower. Continued strong operations from petrochemical and refining operations are likely to offset other cyclical businesses within the portfolio. The affirmation for Lyondell's debt ratings are supported by the recent announcement to sell its Inorganics business which should provide for accelerated debt repayment in the near term. Furthermore, the affirmation also considers Lyondell's better than expected cash generation and debt repayment during 2006. Multiple debt issues are accessible at Lyondell (parent), Equistar and Millennium. Fitch expects debt prepayment premiums and charges will be paid on certain issues instead of allowing cash to build and repay maturities as they come due. Fitch also expects debt reduction targets could potentially be met during 2008. Lastly, Lyondell's size, integrated businesses in refining, petrochemicals and performance products, liquidity and access to capital markets support the rating. The affirmation and revised Rating Outlook to Positive from Stable for Millennium is supported by the expected benefit as a result of the Inorganics divestiture. The asset sale will likely accelerate debt reduction. Currently, Millennium cannot declare dividends to Lyondell due to certain restrictions in its existing bond indenture for the 9.25% senior unsecured notes. Fitch expects these 9.25% notes due June 2008 could potentially be repaid by the company to allow for future cash dividends to Lyondell by Millennium. Depending on debt levels at Millennium post the completion of the Inorganics sale, and the cash flow generation from remaining businesses to support such debt, the ratings could be raised in the next 12-18 months. Potential rating concerns include the Millennium's high dependency on Equistar cash distributions and any new negative developments regarding Millennium's ongoing lead paint litigation. At Dec. 31, 2006, Millennium had $1 billion in indemnity coverage for lead-based paint and lead pigment litigation. The affirmation and revised Rating Outlook to Positive from Stable for Equistar is supported by the overall indirect, and possibly direct, benefit of the Inorganics divestiture. The asset sale could accelerate debt reduction and possibly reduce the need for Equistar to dividend existing cash to partners, and instead use available cash for debt reduction at Equistar. Additionally Equistar's ratings are limited by its parent Lyondell, and the Positive Rating Outlook also reflects the likelihood that Lyondell's ratings could be raised in the next 12-18 months. Equistar's ratings are limited by Lyondell due Lyondell's strong access to its cash flow, Equistar's primary focus on North American markets and its narrower product portfolio compared to Lyondell. Lyondell holds leading global positions in propylene oxide and derivatives, plus TiO2, as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid, and vinyl acetate monomer. The company also has substantial refining operations located in Houston, Texas. The company benefits from strong technology positions and barriers to entry in its major product lines. Lyondell owns 100% of Equistar; 70.5% directly and 29.5% indirectly through its wholly owned subsidiary Millennium. In 2006, Lyondell and subsidiaries generated $2.55 billion of EBITDA on $22.2 billion in sales. MARTIN DEHARO: Case Summary & Two Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Martin DeHaro Alicia DeHaro 122 Bellwood Drive Dalton, GA 30720 Bankruptcy Case No.: 07-40567 Chapter 11 Petition Date: March 5, 2007 Court: Northern District of Georgia (Rome) Debtors' Counsel: Leon S. Jones, Esq. Jones & Walden, LLC 21 Eighth Street, Northeast Atlanta, GA 30309 Tel: (404) 564-9300 Fax: (404) 564-9301 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' Two Largest Unsecured Creditors: Entity Claim Amount ------ ------------ American First Federal Unknown 155 B Avenue, Suite 310 P.O. Box 232 Lake Oswego, OR 97034 Vanderbilt Mortgage Unknown P.O. Box 9800 Maryville, TN 37802 MAVERICK OIL: Sells Barnett Shale Interest for $22.5 Million ------------------------------------------------------------ Maverick Oil and Gas, Inc. has signed a Purchase and Sale Agreement for the sale of its interest in Barnett Shale properties for $22.5 million. These properties are located in Wise County, Texas. Approximately $20 million of the proceeds of the sale of these properties will be used to repay a portion of the company's outstanding debentures and the remainder will be used for capital programs and working capital. Closing is expected to occur in early April 2007 following normal due diligence which is currently ongoing. This sale was required as part of the company's earlier financings. The holders of our outstanding debentures originally required the closing to occur on or before Feb. 28, 2007. They have agreed to extend this timeframe until the actual closing date without any penalties. The company is in discussions with these debenture holders to restructure the remainder of its outstanding indebtedness. "This sale allows us to reduce our overall debt and increase our operating flexibility," James A. Watt, Chief Executive Officer of the Company, stated. "We will now be seeking new properties with near term cash flow to support our operations and complement our long term resource play in the Fayetteville shale of Woodruff County, Arkansas." About Maverick Oil and Gas Based in Fort Lauderdale, Florida, Maverick Oil & Gas, Inc. -- http://www.maverickoilandgas.com/-- is an early stage independent energy company engaged in oil and gas exploration, exploitation, development and production. The Company currently participates in these activities through the interests it holds in oil and gas exploration and development projects in Arkansas, Texas and Colorado. The Company's strategy is to continue the development of its current exploration projects and to expand its operations by acquiring additional exploration opportunities and properties with existing production, taking advantage of the industry experience of its management team and modern techniques such as horizontal drilling and 3D seismic analysis. Going Concern Doubt On Dec. 1, 2006, Malone & Bailey, PC, in Houston, Texas, raised substantial doubt about the ability of Maverick Oil and Gas to continue as a going concern after auditing the company's the accompanying consolidated balance sheets as of Aug. 31, 2006 and 2005 and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the three years then ended. The auditing firm pointed to the company's recurring losses. METHANEX CORP: Board Declares Quarterly Cash Dividend ----------------------------------------------------- Methanex Corporation's Board of Directors has declared a quarterly dividend of $0.125 per share that will be payable on March 31, 2007, to holders of common shares of record on March 16, 2007. The Board has designated this dividend as an "eligible dividend" for the purposes of Canadian tax law. Methanex's Board also approved an increase in the company's current normal course issuer bid, increasing the maximum allowable repurchase by 2 million common shares to 7,495,763 shares, representing about 8 per cent of the public float as at May 8, 2006. As at the close of business on March 2, 2007, the Company had repurchased 5,000,000 common shares under the bid at an average price of $23.85 (CDN$27.17) per share. Bruce Aitken, president and CEO of Methanex commented, "We have generated significant cash flow from operating activities over the past year. The extension of our share repurchase program reflects our balanced approach to the utilization of cash and demonstrates our ongoing commitment to returning excess cash to shareholders." Mr. Aitken added, "We have excellent financial strength and flexibility with $355 million in cash at the end of the fourth quarter of 2006, an undrawn $250 million credit facility and an outlook for continued strong cash generation." The normal course issuer bid repurchase program was originally filed and accepted by the Toronto Stock Exchange (TSX) on May 9, 2006. The program is carried out through the facilities of the TSX. Purchases under the program, which commenced on May 17, 2006, will terminate on the earlier of May 16, 2007, and the date upon which the Company has acquired the maximum number of common shares permitted under the program or otherwise decided not to make further purchases. Purchases will be made from time to time at the then current market price of the Company's common shares as traded on the TSX and the common shares purchased will be cancelled. About Methanex Corp. Based in Vancouver, Canada, Methanex Corp. (TSX: MX)(NASDAQ: MEOH) -- http://www.methanex.com/-- is a publicly traded company engaged in the worldwide production and marketing of methanol. * * * As reported in the Troubled Company Reporter on Nov. 13, 2006, Moody's Investors Service affirmed its Ba1 Corporate Family Rating for Methanex Corp. MILLENNIUM CHEMICALS: Fitch Holds Ratings with Positive Outlook --------------------------------------------------------------- Fitch Ratings affirms the ratings for Lyondell Chemical Company, Equistar Chemicals L.P., Millennium Chemicals Inc. and Millennium America Inc. following Lyondell's announcement to sell its worldwide inorganic chemicals business for $1.2 billion, including the assumption of certain liabilities directly related to the business. The transaction is expected to include a cash payment of $1.05 billion, and result in after tax proceeds of $975 million. The affirmed ratings are: Lyondell -- Issuer default rating at 'BB-'; -- Senior secured credit facility and term loan at 'BB+'; -- Senior secured notes and debentures at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Senior subordinated notes at 'B'. Equistar -- Issuer default rating at 'B+'; -- Senior secured credit facility at 'BB+/RR1'; -- Senior unsecured notes at 'BB-/RR3'. Millennium Chemicals Inc.'s: -- Issuer Default Rating (IDR) at 'B+'; -- Convertible senior unsecured debentures at 'BB/RR2'. Millennium America Inc.: -- Issuer Default Rating (IDR) 'B+'; -- Senior secured credit facility and term loan 'BB+/RR1'; -- Senior unsecured notes 'BB/RR2'. At the same time, the Rating Outlook for Lyondell, Equistar and Millennium was revised to Positive from Stable. For Lyondell, approximately $5.0 billion of debt is covered; for Equistar, approximately $2.2 billion of debt is covered; and for Millennium Chemicals, approximately $853 million of debt is covered by these actions. The Positive Outlook reflects the likelihood that Lyondell will be able to accelerate its debt reduction efforts in the next 12-18 months. Additionally, supply/demand fundamentals continue to be favorable for most of Lyondell's products. Fitch also expects energy and raw material prices will continue to be volatile although these prices on average are expected to trend lower. Continued strong operations from petrochemical and refining operations are likely to offset other cyclical businesses within the portfolio. The affirmation for Lyondell's debt ratings are supported by the recent announcement to sell its Inorganics business which should provide for accelerated debt repayment in the near term. Furthermore, the affirmation also considers Lyondell's better than expected cash generation and debt repayment during 2006. Multiple debt issues are accessible at Lyondell (parent), Equistar and Millennium. Fitch expects debt prepayment premiums and charges will be paid on certain issues instead of allowing cash to build and repay maturities as they come due. Fitch also expects debt reduction targets could potentially be met during 2008. Lastly, Lyondell's size, integrated businesses in refining, petrochemicals and performance products, liquidity and access to capital markets support the rating. The affirmation and revised Rating Outlook to Positive from Stable for Millennium is supported by the expected benefit as a result of the Inorganics divestiture. The asset sale will likely accelerate debt reduction. Currently, Millennium cannot declare dividends to Lyondell due to certain restrictions in its existing bond indenture for the 9.25% senior unsecured notes. Fitch expects these 9.25% notes due June 2008 could potentially be repaid by the company to allow for future cash dividends to Lyondell by Millennium. Depending on debt levels at Millennium post the completion of the Inorganics sale, and the cash flow generation from remaining businesses to support such debt, the ratings could be raised in the next 12-18 months. Potential rating concerns include the Millennium's high dependency on Equistar cash distributions and any new negative developments regarding Millennium's ongoing lead paint litigation. At Dec. 31, 2006, Millennium had $1 billion in indemnity coverage for lead-based paint and lead pigment litigation. The affirmation and revised Rating Outlook to Positive from Stable for Equistar is supported by the overall indirect, and possibly direct, benefit of the Inorganics divestiture. The asset sale could accelerate debt reduction and possibly reduce the need for Equistar to dividend existing cash to partners, and instead use available cash for debt reduction at Equistar. Additionally Equistar's ratings are limited by its parent Lyondell, and the Positive Rating Outlook also reflects the likelihood that Lyondell's ratings could be raised in the next 12-18 months. Equistar's ratings are limited by Lyondell due Lyondell's strong access to its cash flow, Equistar's primary focus on North American markets and its narrower product portfolio compared to Lyondell. Lyondell holds leading global positions in propylene oxide and derivatives, plus TiO2, as well as leading North American positions in ethylene, propylene, polyethylene, aromatics, acetic acid, and vinyl acetate monomer. The company also has substantial refining operations located in Houston, Texas. The company benefits from strong technology positions and barriers to entry in its major product lines. Lyondell owns 100% of Equistar; 70.5% directly and 29.5% indirectly through its wholly owned subsidiary Millennium. In 2006, Lyondell and subsidiaries generated $2.55 billion of EBITDA on $22.2 billion in sales. MIRIAN RODRIGUEZ: Case Summary & 16 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Mirian E. Rodriguez 2066 Troon Drive Henderson, NV 89074 Bankruptcy Case No.: 07-11066 Chapter 11 Petition Date: March 5, 2007 Court: District of Nevada (Las Vegas) Debtor's Counsel: Kent L. Ivey, Esq. 64 North Pecos Road, Suite 800 Henderson, NV 89074 Tel: (702) 990-6447 Fax: (702) 990-6445 Total Assets: $3,858,040 Total Debts: $4,495,536 Debtor's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Americas Servicing Co. Conventional Real $912,000 7485 New Horizon Way Estate Mortgage Frederick, MD 21703 Ocwen Loan Servicing L Conventional Real $789,021 12650 Ingenuity Drive Estate Mortgage Orlando, FL 32826 Fremont Investment & L Conventional Real $402,043 175 North Riverview Drive Estate Mortgage Anaheim, CA 92808 Litton Loan Servicing Conventional Real $197,893 4828 Loop Central Drive Estate Mortgage Houston, TX 77081 Credit Bureau Central Agriculture $5,551 P.O. Box 29299 Alarmco Inc. Las Vegas, NV 89126 Capital One Bank Credit Card $2,282 U.S. Bank/NA ND Credit Line $1,510 First Premier Bank Credit Card $628 Shell/Citi Credit Card $595 Bank of America Credit Card $509 Citgo/CBSD Credit Card $487 Dynamic Recovery Services Agriculture Atmos. $482 Energy HSBC NV Credit Card $472 Diversified Adjustment Agriculture City of $205 Irving Amex Credit Card $191 OSI Collect Collection Med102 $150 St. Francis MOORE MEDICAL: Wants Court Nod to Reject Executory Contracts ------------------------------------------------------------ Moore Medical Center LLC asks the U.S Bankruptcy Court for the Western District of Oklahoma for authority to reject executory contracts and unexpired non-residential real-property leases. The Debtor tells the Court that it never generated a positive cash flow because of: -- construction delays and cost overruns; -- a three-month delay in opening due to delays obtaining equipment financing; -- delays in obtaining managed cared contracts; -- lack of support from certain of the founding physicians due to location changes and other changes; -- lack primary care capacity in the service area; and -- revenue below those originally projected. The Debtor contended that these executory contracts offer no further benefit and the rejection of these contracts will eliminate unnecessary administrative expenses, and is in the best interest of its creditors. Headquartered in Moore, Oklahoma, Moore Medical Center LLC filed for Chapter 11 Protection on Oct. 28, 2006 (Bankr. W.D. Ok. Case No. 06-12867). Joseph A. Friendman, Esq., at Kane Russell Coleman & Logan P.C., represents the Debtor 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 of more than $100 million. NATURADE INC: Court Confirms Fifth Amended Reorganization Plan -------------------------------------------------------------- The U.S. Bankruptcy Court Central District Of California in Santa Ana confirmed the Fifth Amended Plan of Reorganization co-proposed by Naturade Inc. and creditor Health Holdings & Botanicals LLC. The Court determined that the Plan satisfies the 16 standards for confirmation under Sec. 1129(a) of the Bankruptcy Code. Debtor's Comments In a press release, the Debtor says that the reorganization plan received virtually unanimous support from its creditors and shareholders, as well as strong support from lenders and the Official Committee of Unsecured Creditors. The Debtor expects to emerge from Chapter 11 before the end of March 2007 and will remain a fully reporting publicly traded company. The reorganization plan provides for a recapitalization of the Company with Naturade's controlling shareholder, Redux Holdings, Inc. providing a substantial cash infusion to meet Naturade's future working capital needs. In addition to a comprehensive debt restructuring, the reorganization plan features an equity allocation rarely observed in companies emerging from bankruptcy. Of note, the plan allows for the retention of an equity interest by existing shareholders in the Company. "The reorganization process works," stated CEO Richard Munro, an experienced reorganization specialist. "Naturade will emerge from Chapter 11 as a stronger, more financially sound business. With the recapitalization of Naturade, we will have the financial resources to meet the growing demands of consumers for natural and health food products. Naturade has a strong legacy built over 8 decades of product innovation in consumer nutritional supplements and was in the health food business long before the term 'health food' was even invented." "We strive to continually enhance our reputation as an outstanding supplier of natural nutritional supplements and wellness products, and to maintain the support of our vendors and customers," concluded Mr. Munro. "We plan to launch innovative new products in 2007 and beyond to build on our consumer brand strengths and highly valued retailer relationships." Treatment of Claims Under the Plan, Class 7 Allowed Priority Unsecured Claims will be paid in full, in cash. The secured claims of Laurus Master Fund Ltd. will receive all accrued interests owed under the terms of a revolving note and a term note as of the effective date of the Plan, which interests will be added to the principal balance of those notes. Obligations under the notes will mature on Jan. 1. 2010. On the effective date, as evidence of the Class 2 Secured Claim of Health Holdings, the Reorganized Debtor will execute and deliver to Health Holdings a promissory note in the amount of $1,361,000 and a security agreement approved by Health Holdings, Laurus, the Debtor and the Official Committee of Unsecured Creditors. The Health Holdings Note will bear interest of 10% per annum. The Class 2 Secured Claims of William D. Stewart and David Weil will be treated materially the same as the treatment of Health Holdings' secured claim, the amount of which will be determined by stipulation. For Howard Shao's Class 3 Secured Claim, unless Mr. Shao timely objects to the treatment of his Secured Claim under the Plan, his claim, if any, will be deemed to be wholly unsecured, and, accordingly, will be treated as a Class 8 General Unsecured Claim under the Plan. If Mr. Shao timely objects to the treatment of his Secured Claim under the Plan, the amount of his claim will be determined by stipulation. Holders of Class 4 Allowed Secured Claims for Taxes will receive cash installment payments of a value as of the effective date, of their allowed secured claim. For the Class 5 Secured Claim of Redux Holdings Inc., upon the effective date of the Plan, Redux will waive and release its Secured Claim and will take pursuant to the Plan nothing on account of its Secured Claim, in exchange for the issuance to Redux of interests in the Reorganized Debtor. The Class 6 Secured Capital Lease Claims of Leaf Funding Inc., Santa Barbara Bank & Trust, Equipment Funding Group Inc., and any Secured Claims of any Secured Creditor other than the Class 1,2,3,4 and 5 Creditors will be paid through any of these payment options: a) payment in full by means of 36 equal monthly installments of principal equal to the amount of the Class 6 Allowed Secured Claim, plus interest calculated at the rate of 2.5% over the prime rate of interest as published in the Wall Street Journal on the effective date; b) return of collateral; and c) cure of any claim default, reinstatement of maturity, and compensation for damages. Class 8 General Unsecured Creditors will receive these distributions of cash on account of their allowed general unsecured claims: Period Percentage of Payment ------ --------------------- On the effective date 2.5% 1st year after the effective date additional 2.5% 2nd Year after the effective date additional 5% 3rd Year after the effective date additional 10% 4th Year after the effective date additional 10% Class 8 Creditors will also receive pro rata interest in any net avoidance recoveries and any plan agent recoveries that have not been distributed to Class 8 creditors. Doyle & Boissiere LLC will be deemed to have an allowed general unsecured claim in the amount of $650,000. Preferred Stock in the Debtor will be cancelled, and each holder will be issued one share of common stock in Redux for every 34 shares of Preferred Stock held by each holder. Holders of Common Stock will retain common stock in the Reorganized Debtor equivalent to 5% of the issued and outstanding shares of common stock in the Reorganized Debtor as of the effective date. Any Class 10 Creditor will receive nothing on account of its subordinated claim, which subordinated claim will be extinguished and fully discharged. About Redux Holdings Redux Holdings (PINKSHEETS: RDXH) -- http://www.reduxholdings.com/ -- acquires the assets of companies and isolates, recombines and manages those assets to increase their value and develop profitable strategic options. The company is distinguished by the extensive experience of its personnel in quickly identifying, analyzing and stabilizing these business opportunities and effecting rapid turnaround and asset monetization. About Naturade, Inc. Headquartered in Brea, California, Naturade Inc. (OTC BB:NRDCE.OB) -- http://www.naturade.com/-- distributes nutraceutical supplements. The Company filed for chapter 11 protection on Aug. 31, 2006 (Bankr. C.D. Calif. Case No. 06-11493). Richard H. Golubow, Esq., Robert E. Opera, Esq. and Sean A. O'Keefe, Esq., at Winthrop Couchot P.C., in Newport Beach, California, represent the Debtor. When the Debtor filed for protection from its creditors, it listed assets of $10,255,402 and debts of $18,427,161. NEW CENTURY: Lenders Extend Annual Report Filing to March 15 ------------------------------------------------------------ New Century Financial Corp. disclosed in a regulatory filing with the US Securities and Exchange Commission that it had obtained written waivers from various lenders with respect to the delay in the filing of its financial statements. The lenders have agreed to give the company until March 15, 2007, to file its Annual Report on Form 10-K for the year ended Dec. 31, 2006. The company delayed its Annual Report citing its need to restate consolidated financial results for the quarters ended March 31, June 30 and September 30, 2006. The company says that if it were unable to file the required financial statements by the March 15 deadline, it would ask for additional written waivers from its various lenders. The company also discloses that 11 of its 16 financing arrangements require it to report at least $1 of net income for any rolling two-quarter period. The company expects that it will not meet this requirement for the two-quarter period ended Dec. 31, 2006. The company relates that to date, six of the 11 lenders have executed waivers. Certain of these waivers however, will become effective when the company receives similar waivers from each of the other lenders having the rolling two-quarter net income covenant. In addition, where applicable, the company is also seeking amendments to its financing arrangements to modify this rolling two-quarter net income covenant for the remainder of 2007. Although there can be no assurance that the company will receive these amendments and waivers from all of its lenders, the company is in active dialogue with these lenders and has made progress in this regard. In the event the company is unable to obtain satisfactory amendments to or waivers of the covenants in its financing arrangements from a sufficient number of its lenders, or obtain alternative funding sources, KPMG has informed the Audit Committee that its report on the company's financial statements will include an explanatory paragraph indicating that substantial doubt exists as to the company's ability to continue as a going concern. About New Century Founded in 1995 and headquartered in Irvine, California, New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/ -- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. NEW CENTURY: High Liquidity Prompts DBRS to Downgrade Rating ------------------------------------------------------------ Dominion Bond Rating Service downgraded the Issuer Rating of New Century Financial Corporation to B from BB. The rating will remain Under Review with Negative Implications. This rating action is based on the heightened liquidity pressure that New Century faces following its announcement that it is in breach of covenants, the uncertainties caused by the continued delaying of filing the Form 10-K, and the potential management distraction caused by recent allegations. Elevating the liquidity pressures is the company's announcement that it expects to breach a profitability waiver embedded in 11 of its 16 financing agreements that collectively provide an aggregate of approximately $13 billion of committed and $4.4 billion of uncommitted borrowing capacity to fund mortgage loan originations and purchases. The covenant requires that the company reports at least $1 of profitability for any rolling two-quarter period. In addition to obtaining waivers from its lenders, New Century is seeking amendments on certain financing agreements modifying its rolling two-quarter profitability covenant for the remainder of 2007. Although the company has stated that it has obtained waivers from six of the 11 lenders, DBRS is concerned that its inability to obtain waivers from a substantial number of the lenders or the inability to adequately modify this covenant in its credit facilities will have a dire impact on liquidity and the long-term viability of the Company. The delay in filing its Form 10-K further exacerbates this concern. An additional factor into [Mon]day's rating action is DBRS's concern that the various legal, regulatory and criminal allegations just announced will not only be a distraction for management, but may also have a significant impact on the negotiations with its lenders. Lastly, although New Century is currently still assessing the financial and legal impact of the anticipated restatements, and has yet to file its Form 10-K, New Century has stated that it expects to report lower net gain on sales of loans, and impairments to the fair value of its residual assets, loans held for sale, and loans held for investment. DBRS believes that the results of the aforementioned may have a sizable impact upon the company's financial flexibility, but uncertainties remain until the Form 10-K is actually filed. DBRS sees the impact of these uncertainties being exacerbated by the current deteriorating market conditions in the residential sub-prime mortgage industry. DBRS believes that the fundamentals of the New Century business are under severe stress as it continues to face high levels of early payment defaults just as mortgage originations are expected to be reduced with a slower housing market and higher interest rates. DBRS notes that further ratings action is likely should the company not file its Form 10-K by March 15, or should the company announce its inability to obtain the required waivers and amendments from a material number of its lenders. NEW CENTURY: Moody's Cuts Servicer Rating and Retains Review ------------------------------------------------------------ Moody's Investors Service has downgraded the servicer rating of New Century Mortgage Corporation to SQ4 from SQ3+ as a primary servicer of subprime loans. Additionally, Moody's is keeping the rating on review for possible further downgrade. The downgrade is prompted by the company's announcement that it is facing several regulatory inquiries and is out of compliance with covenants for several of its warehouse lenders. According to the company, the Securities and Exchange Commission and the regulatory arm of the New York Stock Exchange have made inquiries into the company. Furthermore, according to the company, the U.S. Attorney's Office is conducting a federal criminal inquiry into trading and accounting errors at the company. Moody's believes that the announcements have a significant negative impact on the servicing operations. Moody's will assess whether the performance of residential mortgage-backed securities backed in whole or in part by loans serviced by New Century may be impacted. Although it is too soon to determine which specific transactions may be affected, the level of impact will depend primarily upon the proportion of loans serviced by New Century as well as the performance of such loans. As with all ratings, Moody's will continue to monitor the performance and take rating actions as appropriate. New Century, a wholly-owned subsidiary of New Century Financial Corporation, is a mortgage finance company engaged in the business of originating, purchasing, and servicing mortgage loans secured primarily by first and second lien mortgages. Moody's SQ ratings represent its view of a servicer's ability to prevent or mitigate asset pool losses across changing markets. The rating scale ranges from SQ1 (strong) to SQ5 (weak). Where appropriate, a "+" or "-" modifier will be appended to the relevant rating to indicate a servicer's relative servicing quality within a particular category. Moody's servicer ratings are differentiated in the marketplace by focusing on performance measurement. SQ ratings for US residential mortgage servicers incorporate assessments of delinquency transition rates, foreclosure timeline management, loan cure rates, recoveries, loan resolution outcomes, and REO management - all critical indicators of a servicer's ability to maximize returns from mortgage portfolios. Moody's servicer ratings also consider the company's ability to maintain its focus on high quality servicing in an economic downturn. Servicing operations can be stressed by increasing the number of delinquent loans while at the same time increasing the need for liquidity. The SQ rating reflects our expectation of the impact that the servicing will have on the on-going credit performance of the portfolio. For this reason, Moody's monitors SQ ratings based on periodic information provided by servicers and conducts a formal re-evaluation of its servicer ratings annually. NEW CENTURY: S&P Junks Rating and Retains Negative CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its counterparty credit rating on New Century Financial Corp. to 'CCC' from 'B'. Standard & Poor's also said that the rating remains on CreditWatch with negative implications, where it was placed on March 2, 2007. "The rating action reflects our concerns about New Century's ability to cope with the mounting financial and reputational stress resulting from a criminal investigation," explained Standard & Poor's credit analyst Adom Rosengarten. The company announced that the U.S. Attorney's Office for the Central District of California is conducting a criminal inquiry in connection with trades in the company's stock and is investigating the company's accounting errors relating to allowance for loan repurchases. In a residential mortgage market where investors and other participants are rapidly losing confidence, it could be a challenge for the company to work through current credit trends. The investigation and the damage it might do to the company's reputation create concern about New Century's ability to maintain its warehouse lending lines, which are necessary to fund mortgage originations. Given the uncertain nature of New Century's operating results and the implications of possible further credit quality decline, the rating will remain on CreditWatch with negative implications until the situation becomes more stable. NEW CENTURY: S&P Puts Subprime Servicer Ranking on Negative Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its ABOVE AVERAGE subprime servicer ranking on New Century Mortgage Corp. on CreditWatch with negative implications. The ranking formerly had a stable outlook. The negative CreditWatch placement follows the March 5, 2007, lowering of the counterparty credit rating on New Century Financial Corp., New Century's parent company, to 'CCC' from 'B'. As a result of the corporate downgrade, S&P has revised its assessment of the financial position of New Century's servicing operation to insufficient. Consequently, S&P has have removed the company from its Select Servicer List. Standard & Poor's believes the recent downgrade of New Century Financial may have a detrimental impact on New Century's servicing operation, as it may result in elevated turnover and, concurrently, deterioration of servicing performance due to the company's financial uncertainty. Standard & Poor's will continue to monitor the situation and will adjust the ranking as necessary. NOMURA ASSET: Moody's Rates Class M-10 Certificates at Ba1 ---------------------------------------------------------- Moody's Investors Service has assigned a Aaa rating to the senior certificates issued by Nomura Asset Acceptance Corporation, Alternative Loan Trust, Series 2007-S1, and ratings ranging from Aaa to Ba1 to the mezzanine certificates in the deal. The securitization is backed by fixed-rate second lien loans acquired by Nomura Credit & Capital, Inc. The collateral was originated by EquiFirst Corporation (16.79%), American Home Mortgage Corp. (16.71%), Ownit Mortgage Solutions, Inc. (12.93%), Impac Funding Corporation (11.51%) and various other originators (none of which originated more than 10.00% of the mortgage loans). The ratings are based primarily on the credit quality of the loans and on the protection from subordination, overcollateralization, excess spread, and an interest rate swap and rate cap agreement. Moody's expects collateral losses to range from 7.65% to 8.15%. GMAC Mortgage, LLC and Ocwen Loan Servicing, LLC will service the mortgage loans. Wells Fargo Bank, N.A. will act as master servicer. Moody's has assigned Ocwen Loan Servicing, LLC its servicer quality rating of SQ2- as primary servicer of subprime loans and Wells Fargo Bank, N.A. its top servicer quality rating of SQ1 as master servicer. The complete rating actions are: Nomura Asset Acceptance Corporation Alternative Loan Trust, Series 2007-S1 Mortgage Pass-Through Certificates, Series 2007-S1 * Cl. A, Assigned Aaa * Cl. M-1, Assigned Aaa * Cl. M-2, Assigned Aa2 * Cl. M-3, Assigned Aa2 * Cl. M-4, Assigned Aa3 * Cl. M-5, Assigned A1 * Cl. M-6, Assigned A3 * Cl. M-7, Assigned A3 * Cl. M-8, Assigned Baa1 * Cl. M-9, Assigned Baa3 * Cl. M-10, Assigned Ba1 NORTH AMERICAN: Earns $6.6 Million in Third Fiscal Quarter ---------------------------------------------------------- North American Energy Partners Inc. reported that record revenue of $155.9 million propelled earnings to $6.6 million for the three months ended Dec. 31, 2006, up from $2.1 million for the same period in fiscal 2006. The company has earned $19.8 million for the first nine months of fiscal 2007, an increase of $55.4 million over the prior year loss of $35.6 million. The company also completed an initial public offering for its common shares in the quarter. Including the subsequent over allotment, net proceeds received by the company were $153 million on the issue of 9,437,500 voting common shares. Proceeds were used to retire debt, redeem preferred shares and to purchase certain leased equipment. At the same time as the closing of the IPO, NACG Holding Inc. amalgamated with its two subsidiaries, NACG Preferred Corp. and NAEPI, with the amalgamated company continuing as NAEPI. "The quarter had many highlights," said Rod Ruston, president and CEO. "Taking the Company public was certainly an historic milestone which has positioned us to take advantage of what we see as a strong and growing business environment. Another highlight was achieving record revenue for the quarter." Ruston added, "The operations in most of the Company continued to perform very well, despite challenges with the weather and rising equipment and tire costs. Our only area of shortfall came in the Pipeline division, which experienced some operational difficulties, primarily due to an unseasonably large amount of rain and changed conditions experienced on two projects." Summary All comparisons are to the three-month period ending Dec. 31, 2005: * Revenue was $155.9 million, a $34.4 million increase from $121.5 million in the prior corresponding period, as a result of an increased volume of work in all segments. Segment operating profit also increased by $3.3 million to $17.5 million from $14.2 million, with operating margins improving in Mining and Site Preparation as well as Piling. * Mining and Site Preparation revenue increased by $21.6 million or 24% to $111.4 million. Segment profit increased by $4.2 million to $9.0 million due to higher revenues, increased profit margins and positive one-time impacts of the IPO. * The Piling division recorded quarterly revenue of $29.2 million, an $8.3 million improvement. Segment profit also increased significantly, rising from $6.3 million to $10.3 million. Higher revenues and job profit margins accounted for this increase. * Pipeline revenue was $15.3 million, a $4.5 million increase. The division experienced an operating loss of $1.8 million resulting from weather and other operational challenges on two projects. In the same period last year, this division earned $3.1 million. * Gross profit of $26.0 million was a $12.2 million improvement over last year's $13.8 million. Higher revenue and lower operating lease expense were offset partially by higher project and equipment costs. * Equipment costs were $29.2 million, an increase of $12.4 million due to higher equipment hours, increased repair costs and significantly higher costs for tires. * General and administrative expense was $3.4 million higher due primarily to $2.0 million in one-time fees to terminate an Advisory Services Agreement. Increased staffing and salary levels also contributed to the increase. * Net income for the period was $6.6 million compared to $2.1 million in the previous corresponding period. Based on a weighted average of 24.7 million and 18.6 million shares outstanding respectively, basic EPS for this quarter was $0.27 as compared to $0.11 last year. * Capital expenditures totaled $78.4 million in the quarter, of which $44.6 million related to the purchase of leased equipment using the net proceeds from the IPO. Most of the remaining expenditure was for growth capital and included growth in the fleet with the addition of 10 new mining trucks. Headquartered in Acheson, Alberta, Canada, North American Energy Partners Inc. (TSX: NOA) (NYSE: NOA) -- http://www.nacg.ca/-- is one of the largest providers of mining and site preparation, piling and pipeline installation services in western Canada. For more than 50 years, the company has provided services to large oil, natural gas and resource companies, with a principal focus on the Canadian oil sands. The company maintains one of the largest independently owned equipment fleets in the region. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Moody's Investors Service upgraded North American Energy Partners Inc.'s Corporate Family Rating to B2 from B3; its Probability of Default Rating to B2 from B3; and its senior unsecured note rating to B3, LGD4, 67% from Caa1, LGD5, 72%. NORTHWEST AIRLINES: Pilots Picketing Today to Demand Fin'l Share ---------------------------------------------------------------- Pilots of Northwest Airlines Corp. will conduct informational picketing today, March 7, 2007, at 4:15 p.m. at the Minneapolis/St. Paul International Airport to demand a share in Northwest Airlines' financial success in return for their deep concessions made in U.S. Bankruptcy Court for the Southern District of New York to save Northwest Airlines from liquidation. Northwest is on far better financial footing than the grim Chapter 11 business plan that NWA executives sold to the Bankruptcy Court last year to support their ultimatums for deep employee concessions. As a result, Northwest pilots demand to share in the company's success by quickly regaining their lost pay, benefits, and work rules. Pilots at Northwest deserve REAL profit- and success-sharing plans. NWA's profit- and success-sharing programs are a farce because NWA pilots will receive only pennies on the dollar compared to the amount of pay and work rule concessions pilots conceded in Court. The potential of a few thousand dollars a year for each pilot falls far short of making up for an annual $40,000 to $100,000 pay cut. Even the inclusion of the Northwest pilots' claim sale proceeds would at best return only about 20 cents on every dollar conceded. Northwest pilots agreed last year in Court to give $358 million annually (including a 23.9% pay cut) to help the company avoid liquidation. This sacrifice was in addition to the $265 million (including a 15% pay cut) annual concession Northwest pilots gave in December 2004. Northwest pilots' total concession of $623 million a year totals more than $4 billion through 2011. Northwest Airlines Corp. (OTC: NWACQ) -- http://www.nwa.com/ -- is the world's fourth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,400 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents. The Company and 12 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17930). Bruce R. Zirinsky, Esq., and Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP in New York, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft LLP in Washington represent the Debtors in their restructuring efforts. The Official Committee of Unsecured Creditors has retained Akin Gump Strauss Hauer & Feld LLP as its bankruptcy counsel in the Debtors' chapter 11 cases. When the Debtors filed for protection from their creditors, they listed $14.4 billion in total assets and $17.9 billion in total debts. On Feb. 15, 2007, the Debtors filed an Amended Plan & Disclosure Statement. The hearing to consider the adequacy of the Disclosure Statement has been scheduled for March 26, 2007. OHIO CASUALTY: S&P Assigns Preliminary BB Preferred Stock Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'BBB-' senior debt, 'BB+' subordinated debt, and 'BB' preferred stock ratings to Ohio Casualty Corp.'s (NASDAQ:OCAS) universal shelf registration. "The ratings reflect the group's continued strong operating performance, improved expense structure, very strong capitalization, stabilized loss reserve levels, strong interest coverage, low financial leverage, strong liquidity and cash flow, and the expectation that these favorable trends will continue," said Standard & Poor's credit analyst Taoufik Gharib. Offsetting these positive factors are an expense ratio that remains moderately higher than those of the group's industry peers and continued underwriting challenges in segments of its core commercial lines division. The group was ranked the 50th largest property/casualty writer in the U.S., based on 2005 direct premiums written. In 2006, net premiums written were slightly down (2.6%) to $1.4 billion compared with the prior year, mostly due to softening personal lines. The group has a strong market presence in middle-market commercial lines, a sizable personal lines product portfolio, and a niche focus on specialty product lines. In 2006, the group generated a strong operating performance as demonstrated by a GAAP combined ratio of 93.7% and an ROR of 16.8% compared with 94.2% and 14.1% in the prior year, respectively. As of year-end 2006, the group's financial leverage was 11.6%, slightly down from 12.7% in the prior period. In the same period, GAAP pretax interest coverage improved to 18.5x from 14.2x, respectively, reflecting the improved operating performance of the group's property/casualty operations. Standard & Poor's does not expect any new issuance of securities in the foreseeable future. Financial leverage is expected to remain modest at less than 20%, which we consider conservative for the rating category. GAAP interest coverage is expected to remain extremely strong and at more than 10x, driven by the group's continued strong operating performance. In 2007, Standard & Poor's expects that the group's underwriting results will moderately deteriorate as the commercial lines pricing softens and produce a combined ratio in the mid 90s. Continued sustainable underwriting profit coupled with moderate premium growth and strong capitalization levels could lead to a positive outlook on the company in the medium term. Conversely, a continued decline in the top line, a reversion to operating losses, or continued commercial lines underwriting losses could lead to the outlook being revised to negative. OMNI INSURANCE: A.M. Best Withdraws B+ Financial Strength Rating ---------------------------------------------------------------- A.M. Best Co. has withdrawn the financial strength rating of B+ (Good) and assigned a category of NR-5 (Not Formally Followed) to Omni Insurance Group (Atlanta, GA). Effective November 30, 2006, Omni Insurance Company and its subsidiary, Omni Indemnity Company, formerly members of the Omni Insurance Group, were acquired by Independent Insurance Investments, Inc., the parent of American Independent Companies (Conshohocken, PA). On February 22, 2007, both companies became members of the AIC pool, retroactive to January 1, 2007. The FSR of B+ (Good) for Omni Insurance and Omni Indemnity remains unchanged by this rating event. The outlook for the rating is stable. 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. OMNITECH CONSULTANT: Creditors Accept BIA Proposal -------------------------------------------------- Omnitech Consultant Group Inc., aka Groupe Conseil Omnitech Inc., filed its Default Status Report in compliance with CSA Staff Notice 57-301. GCO's directors and officers are presently the object of a Management CTO prohibiting them to trade GCO securities. A request to this effect has been filed to the regulatory authorities when it became apparent that GCO would not be able to file its year end audited and first quarter ended Nov. 30, 2006, unaudited financial statements their related management report within the prescribed delays. A press release dated Jan. 4, 2007, described the reasons of the delay, namely the procedures related to the filing of the notice of intent to make a proposal to creditors in accordance with the provisions of the Bankruptcy and Insolvency Act. On Jan. 31, GCO and its wholly owned subsidiaries, Toptech Groupe Conseil Inc., Groupe de Gestion GCO Inc., Groupe Isac Inc. and Groupe Cadec Inc. filed proposals to their creditors at the court's registry. At the creditors meeting held on Feb. 23, the creditors accepted the proposal for the payment of 100% of the value of their claims in common shares of GCO at a price per share of $0.05. As a result, between 180 and 200 million common shares of the Corporation will be issued to its creditors. The issuance of the shares is however subject to the approval of GCO's shareholders at a special assembly that will take place on March 12, as well as the approval of the TSX Venture Exchange and the competent regulatory authorities. In the meantime, GCO pursues its refinancing efforts with several financial groups. GCO also convened, on Feb. 28, its general annual shareholders meeting, in accordance with the dispositions of the Canada Business Corporations Act, which will be held on Sept. 12, 2007, to approve the financial statements for the year ended Aug. 31, 2006, and appoint the auditor and the board of directors. In accordance with CSA Staff Notice 57-301, GCO confirms that except as disclosed: (i) there is no material change in the information contained in the Notice of Default; (ii) there is no failure of GCO to fulfill the intentions stated in its Notice of Default or any Default Status Report; and (iii) there is no other material information concerning the affairs of GCO that has not been generally disclosed. About Omnitech Consultant Group Inc. Omnitech Consultant Group Inc., aka Groupe Conseil Omnitech Inc. (TSX VENTURE: GCO), offers solutions as a one-stop-shop in engineering, information technology and systems maintenance. GCO integrates new technologies or optimizes existing systems by applying cutting-edge expertise currently used in the best practices. GCO and its subsidiaries filed for creditor protection in accordance with the provisions of the Bankruptcy and Insolvency Act on Oct. 31, 2006. PricewaterhouseCoopers Inc. has been retained as trustee. PAIVIS CORP: Jaspers+Hall PC Raises Going Concern Doubt ------------------------------------------------------- Jaspers+Hall PC, in Denver, Colorado, expressed substantial doubt about Paivis Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2006. The auditing firm pointed to the company's recurring losses and its difficulties in generating sufficient cash flow to meet its obligations and sustain its operation. Paivis Corp. fka APO Health Inc. reported a $4.1 million net loss on $6.9 million of revenues for the year ended Sept. 30, 2006, compared with a $6.8 million net loss on $422,982 of revenues for the year ended Sept. 30, 2005. The increase in revenue resulted from the acquisition of Macro Communications in September 2005. Gross profit was $137,812 in fiscal 2006, compared to a gross loss of $199,154 for fiscal 2005. Operating expenses for fiscal 2006 were $4.2 million, a decrease of $2.4 million from fiscal 2005. The largest decrease was a reduction in wages and benefits expense of $3.1 million. In fiscal 2006, the company incurred $1.1 million in debt retirement expense to induce debt holders to convert their debt to restricted common shares. Professional fees increased during the year by approximately $265,405 due to increase in legal expenses. At Sept. 30, 2006, the company's balance sheet showed $6.9 million in total assets and $7.6 million in total liabilities, resulting in a $740,190 total stockholders' deficit. The company's balance sheet at Sept. 30, 2006, also showed strained liquidity with $531,174 in total current assets available to pay $7.6 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the year ended Sept. 30, 2006, are available for free at http://researcharchives.com/t/s?1ac2 About Paivis Corp. Headquartered in Atlanta, Georgia, Paivis Corp. (OTC BB: PAVC.OB) is a facility-based wholesale telecommunications carrier that delivers many application/value-added services within the prepaid services space. The company operates and maintains a switching facility, offering over 16,000 ports with connectivity to most of the tier 1 carriers in the US and manages an extensive international (A-Z) network. In addition to the wholesale business, Paivis maintains a large retail distribution network for direct to consumer services. PATHMARK STORES: Merger Deal Cues Moody's to Review Ratings ----------------------------------------------------------- Moody's Investors Service placed the ratings of Pathmark Stores, Inc. on review direction uncertain following the company's announcement on March 5, 2007 that it has agreed to be acquired by The Great Atlantic & Pacific Tea Co. for consideration of $1.3 billion in cash, stock and debt assumption and retirement. The review direction uncertain reflects: (1) the possibility that Pathmark's ratings could be raised depending on the credit profile of the combined entity and the position of the Pathmark debt in the resulting capital structure, as well as (2) the risk that Pathmark's operating performance could deteriorate during the interim period prior to the closing of the merger transaction. Ratings placed under review direction uncertain: * Corporate Family Rating of Caa1; * Probability of Default Rating of Caa1; * $350 million guaranteed 8.75% Senior Subordinated Notes (2012) of Caa2 (LGD 5, 76%). Moody's review will primarily focus on: (1) the resulting capital structure of the combined company, (2) interim operating performance of Pathmark prior to the completion of the merger transaction , with particular focus on profitability and comparable store sales, (3) financial policy and liquidity profile, (4) evaluation of potential synergies. If Pathmark's operating performance were to deteriorate significantly prior to the closing of the transaction, its ratings could potentially be downgraded. Pathmark Stores, Inc., with headquarters in Carteret, New Jersey, operates 141 supermarkets around the New York City and Philadelphia metropolitan areas. The company generated revenue of nearly $4 billion for the twelve months ended October 28, 2006. PER-SE TECHNOLOGIES: Debt Repayment Cues S&P to Withdraw Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B+' corporate credit and all other debt ratings for Per-Se Technologies and removed them from Credit Watch, where they had been placed with positive implications on Nov. 6, 2006. "This rating action reflects the repayment of all of Per-Se Technologies' outstanding debt, following its acquisition by McKesson Corp.," said Standard & Poor's credit analyst Stephanie Crane Mergenthaler. REGAL ENT: Fitch Says Special Dividend Plan Won't Affect Ratings ---------------------------------------------------------------- Regal Entertainment Group's ratings and Outlook are not affected by the announced extraordinary cash dividend of $2.00 per class A and B common share or approximately $300 million. RGC will fund the special dividend from a portion of the net proceeds it received in connection with National CineMedia's IPO completed on Feb. 13, 2007. RGC's share of the net NCM IPO proceeds is estimated at $445 million after current taxes. The company also stated that it continues to evaluate other corporate uses, including potential acquisitions, for the remainder of the proceeds. Fitch recently established ratings and coverage on RGC and Regal Cinemas Corporation by assigning a 'B+' Issuer Default Rating to both issuing entities. The ratings incorporated Fitch's expectation that RGC's proceeds from the NCM IPO would not be used to pay off debt. The ratings reflect the company's size and position as a leading theater exhibitor, solid geographic diversity, sound operating performance, and relatively stable free cash flow generation. Fitch notes that the company is the only major exhibitor in over 85% of the film distribution zones in which it operates. These strengths are balanced by the intermediate term risks associated with collapsing film distribution windows, increased competition from at-home entertainment media, heavy reliance upon a limited number of film distribution companies, limited control over revenue trends, high operating leverage which can make theater operators free cash flow-negative in a downturn, and a history of aggressive dividend payouts. In establishing the long-term ratings, Fitch heavily weighed the current and prospective challenges facing RGC and its industry peers. Going forward, pricing is not likely to be under significant pressure, but attendance is expected to continue to remain exposed to indirect competition from other distribution channels such as DVD, home video and video on demand; particularly as film distribution windows continue to gradually collapse. In addition, exhibitor performance is tied to the quality of the motion pictures produced and distributed, a critical factor that is largely outside of management's control. RGC's liquidity is adequate with cash of $162.2 million and $99.2 million available under the company's $100 million revolver as of Dec. 28, 2006. The company's maturity schedule is manageable with less than $35 million due in each of 2007, 2008 and 2009, excluding $123.7 million of convertible notes which are due May 15, 2008 and convertible at holder's option. The company's liquidity is further supported by the working capital dynamics of the theater exhibition business. RGC and Regal Cinemas are currently rated as: Regal Cinemas: -- IDR 'B+'; -- Senior secured facility 'BB/RR2'; -- Senior subordinated notes 'B/RR5'. RGC -- IDR 'B+'; -- Senior unsecured convertible notes 'B-/RR6'. RICHARD LEWANDOWSKI: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Richard J. Lewandowski Lalainia J. Lewandowski 2670 40th Street North Buffalo, MN 55313 Bankruptcy Case No.: 07-40727 Type of Business: The Debtors filed for chapter 11 protection on November 1, 2006 (Bankr. D. Minn. Case No. 06- 42516). Chapter 11 Petition Date: March 5, 2007 Court: District of Minnesota (Minneapolis) Debtors' Counsel: Michael F. McGrath, Esq. Ravich Meyer Kirkman & McGrath Nauman P.A. 4545 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Tel: (612) 332-8511 Fax: (612) 332-8302 Debtors' financial condition as of March 5, 2007: Total Assets: $61,104,562 Total Debts: $42,340,043 Debtors' 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Home Mortgage Real Estate, $36,000,000 4600 Regent Boulevard Olmsted and Secured: Suite 200 Hennepin, $4,900,000 Irving, TX 75063 Minnesota Counties Sonic Financial Personal Guaranty $2,300,000 120 Town Square 444 Cedar Street St. Paul, MN 55101 Hassler, Michael & Laurie Personal Guaranty $308,659 13006 New Haven Road Northwest for Contract Pine Island, MN 55963 Meritt Hage Judgment $259,328 110 Regan Lane, Suite 305 Osseo, MN 55369 U.S. Federal Credit Union Credit Card $40,286 1400 Riverwood Drive Burnsville, MN 55337 GMAC Guaranty for $29,000 Auto Loan HFC Credit Line $10,487 M&I Bank Credit Card $5,938 American Express Credit Card $4,096 Target VISA Credit Card $1,765 U.S. Bank Credit Card $1,248 Ferrell Gas Goods and Services $1,087 Verizon Wireless Cell Phone $187 Capital One Credit Card $66 RISK ASSURANCE: A.M. Best Puts B+ FSR Under Negative Review ----------------------------------------------------------- A.M. Best Co. has placed the financial strength rating of B+ (Good) of Risk Assurance Company of Saint Peter's University Hospital (Grand Cayman, Cayman Islands) under review with negative implications. The rating has been placed under review due to a significant decline in Risk Assurance's fourth quarter policyholder surplus levels, largely due to a single claim payment, which resulted in weakening capitalization levels. The under review status affords management the time to provide the necessary documentation, including but not limited to a strategy for dealing with potential future large losses. This documentation is required for further assessment of Risk Assurance. Management anticipates capitalization will be restored to the appropriate level in the short term. The rating and its under review status will remain in effect until A.M. Best has had an opportunity to review the aforementioned documentation when it is received. 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. RURAL/METRO CORP: Receives Wells Fargo's Notice of Default ---------------------------------------------------------- Rural/Metro Corporation has received a notice of default from Wells Fargo Bank N.A. with respect to the company's 9.875% Senior Subordinated Notes due 2015 and its 12.75% Senior Discount Notes due 2016 that it has not yet met the timely filing requirement for its Form 10-Q for the second quarter ended Dec. 31, 2006 within the indentures. Under the Indentures, the company has until April 23, 2007, to regain compliance by filing the second-quarter Form 10-Q. The company reported on Feb. 12, 2007 that it required additional time to file its quarterly report on Form 10-Q for the period ended Dec. 31, 2006 due to the restatement of consolidated financial statements for the fiscal year ended June 30, 2006 and the quarters ended Mar. 31, 2006 and Sept. 30, 2006. The company currently expects to file the restated historical financial statements and current quarterly report within the 60- day cure period Approximately $186 million aggregate principal amount of the notes is outstanding under the Indentures, and all required interest and principal payments have been made on a timely basis. A failure by the company to observe any covenant under the indentures also constitutes an event of default under the company's credit facility and could lead to an acceleration of the unpaid principal and accrued interest. Approximately $100 million is outstanding under the credit facility, and all required interest and principal payments have been made on a timely basis. Headquartered in Scottsdale, Arizona, Rural/Metro Corporation -- http://www.ruralmetro.com/-- provides emergency and non- emergency medical transportation, fire protection, and other safety services in 23 states and approximately 400 communities throughout the United States. SABRE INC: S&P Rates Proposed $3.215 Billion Senior Facility at B+ ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned ratings to Sabre Inc.'s proposed $3.515 billion secured credit facility. Sabre Inc. is the major operating subsidiary of travel distribution company Sabre Holdings Corp. (BB/Watch Neg/--). S&P assigned a 'B+' rating to Sabre Inc.'s proposed $3.215 billion first-lien senior secured credit facility, with a recovery rating of '2', indicating expectations of substantial (80%-100%) recovery of principal in the event of a payment default. The facility consists of a $500 million revolver due March 2013 and a $2.715 billion term loan due September 2014. In addition, S&P assigned a 'B-' rating to the $300 million second-lien term loan that matures in March 2015, with a recovery rating of '5', indicating expectations of negligible (0%-25%) recovery of principal in the event of a payment default. "Upon completion of these transactions, we expect to lower the 'BB' corporate credit rating on Sabre Holdings Corp. to 'B+', and lower the 'B+' senior unsecured debt rating to 'B-'," said Standard & Poor's credit analyst Betsy Snyder. All ratings on Sabre Holdings Corp. would be removed from CreditWatch with negative implications; ratings were initially placed on CreditWatch with negative implications on Dec. 12, 2006, and subsequently lowered on Dec. 21, 2006. Standard & Poor's would assign a stable outlook. The ratings on Sabre Holdings Corp. reflect its highly leveraged financial profile, pro forma for its acquisition by private equity firms, and the cyclical nature of the travel industry, in which it participates as a distributor and marketer. Ratings also incorporate the company's leading position in this segment of the travel market, and the strong cash flow this business typically generates. SANDISK CORP.: Earns $198.89 Million in Fiscal Year 2006 -------------------------------------------------------- SanDisk Corp. reported net income of $198.89 million on total revenues of $3.25 billion for the fiscal year ended Dec. 31, 2006, as compared with a net income of $386.38 million on total revenues of $2.3 billion in total revenues for the fiscal year ended Jan. 1, 2006. The company increased its research and development, sales and marketing, and general and administrative costs for 2006. It also incurred additional expenses of $225.6 million in write-off of acquired in-process technology and $17.43 million in amortization of acquisition-related intangible assets that drove total operating expenses to $913.13 million for fiscal year 2006, up from $396.15 million for fiscal year 2005. Operating activities generated $598.1 million of cash during the year ended Dec. 31, 2006. Operating activities generated $480.9 million of cash during the year ended Jan. 1, 2006. At Dec. 31, 2006, the company had cash, cash equivalents and short- term investments of $2.81 billion. At Dec. 31, 2006, the company had a working capital balance of $3.3 billion and says that it does not expect any liquidity constraints over the next twelve months. The company's balance sheet showed $6.96 billion in total asset, $2.2 billion in total liabilities, resulting to $4.76 billion in stockholders' equity at Dec. 31, 2006. In December 2006, the company announced that its Board of Directors authorized a stock repurchase program under which SanDisk intends to acquire up to $300 million of its outstanding common stock in the open market over the next two years. As of Feb. 15, 2007, the company has repurchased $400,000 of shares. Work Force Reduction On Feb. 15, 2007, the company's Board of Directors approved a plan to reduce operating costs, which includes a worldwide reduction in force of up to 10% of its headcount, or approximately 250 employees. SanDisk expects to incur a restructuring charge in connection with the Plan in the range of $15 million to $20 million, with the majority of the expense occurring in the first quarter of 2007. The work force reduction will impact functions related to operations, engineering, sales, and marketing and administration and will primarily be based in the United States and Israel, and to a lesser degree, other international locations. The Plan is expected to be completed by the third quarter of fiscal 2007. Financing Arrangements In May 2006, the company issued and sold $1.15 billion in aggregate principal amount of 1% Notes due 2013 that were issued at par. The Notes may be converted into our common stock, under certain circumstances, based on an initial conversion rate of 12.1426 shares per $1,000 principal amount of notes. Concurrently, with the issuance of the 1% Notes, the company purchased a convertible bond hedge and sold warrants. The separate convertible bond hedge and warrant transactions are structured to reduce the potential future economic dilution associated with the conversion of the 1% Notes and to increase the initial conversion price to $95.03 per share. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1aad About SanDisk Corp. Headquartered in Milpitas, Calif., SanDisk Corp. (NASDAQ:SNDK) -- http://www.sandisk.com/-- manufactures various formats of flash memory cards for use in consumer electronics products, including digital cameras, mobile phones, and game systems. It also produces devices such as USB drives and MP3 music players. * * * In May 2006, Standard & Poor's Ratings Services assigned its 'BB-' rating to Sunnyvale, California-based SanDisk Corp.'s proposed issue of $1 billion of senior unsecured convertible notes due 2013. The 'BB-' corporate credit rating on SanDisk was affirmed. The rating outlook is stable. STRUCTURED ASSET: Fitch Rates $4.9 Mil. Class B1 Certs. at BB+ -------------------------------------------------------------- Structured Asset Securities Corporation mortgage pass-through certificates, series 2007-GEL1, is rated by Fitch Ratings as: -- $223,781,000 classes A1, A2, and A3 'AAA'; -- $23,912,000 class M1 'AA+'; -- $6,918,000 class M2 'AA'; -- $6,316,000 class M3 'AA-'; -- $6,166,000 class M4 'A+'; -- $5,564,000 class M5 'A'; -- $5,264,000 class M6 'A-'; -- $4,662,000 class M7 'BBB+'; -- $4,061,000 class M8 'BBB'; -- $4,963,000 class B1 'BB+'. The 'AAA' rating on the class A certificates reflects the 26.95% credit enhancement provided by the 7.95% class M1, the 2.30% class M2, the 2.10% class M3, the 2.05% class M4, the 1.85% class M5, the 1.75% class M6, the 1.55% class M7, the 1.35% class M8, the 1.65% class B1, and the 1.50% class B2 (not rated by Fitch), along with overcollateralization (OC). The initial OC amount is 1.55%, growing to a target OC of 2.90%. In addition, the ratings on the certificates reflect the quality of the underlying collateral, and Fitch's level of confidence in the integrity of the legal and financial structure of the transaction. The mortgage pool consists of fixed- and adjustable-rate mortgage loans secured by first and second liens on one- to four-family residential properties, with an aggregate principal balance of $300,781,466. As of the cut-off date (Jan. 1, 2007) the mortgage loans had a weighted average loan-to-value ratio (LTV) of 82.75%, weighted average coupon (WAC) of 7.937%, weighted average remaining term to maturity (WAM) of 341 months and an average principal balance of $191,824. Single-family properties and PUDs account for approximately 83.50% of the mortgage pool, condos 7.43% of the mortgage pool, and 2-4 family properties 8.83% of the mortgage pool. The three largest state concentrations are California (21.81%), Florida (12.60%), and New York (7.50%). None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. Structured Asset Securities Corporation deposited the loans into the trust, which issued the certificates, representing beneficial ownership in the trust. For federal income tax purposes, the Trust will consist of multiple real estate mortgage investment conduits. U.S. Bank National Association will act as trustee. Aurora Loan Services LLC (rated 'RMS1-' by Fitch) will act as Master Servicer for this transaction. TEC FOODS: Wants Heller Draper as Special Counsel ------------------------------------------------- TEC Foods Inc. ask the U.S Bankruptcy Court for the Eastern District of Michigan for permission to employ Heller, Draper, Hayden, Patrick, & Horn, L.L.C., as its special counsel. The firm will assist the Debtor and its lead counsel in connection with the Debtor's plan confirmation process and related litigation. Douglas S. Draper, Esq., a principal of the firm, will charge the Debtor $350 per hour for this engagement. He also discloses that the firm's other attorneys bill $275 per hour while paralegal's hourly rates is $90. Mr. Draper assures the Court that the firm does not hold any interest adverse to the Debtor and is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code. Mr. Draper can be reached at: Douglas S. Draper, Esq. Heller, Draper, Hayden, Patrick, & Horn, L.L.C. 9311 Bluebonnet Blvd. Baton Rouge, Louisiana 70810 Tel: (225) 767-1499 Fax: (225) 761-0760 http://www.hellerdraper.com/ Headquartered in Pontiac, Michigan, TEC Foods, Inc., is a Taco Bell franchisee. The company filed for chapter 11 protection on Nov. 3, 2005 (Bankr. E.D. Mich. Case No. 05-89154). Paula A. Hall, Esq., at Butzel Long, P.C., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in this case. When the Debtor filed for protection form its creditors, it estimated assets and debts between $10 million and $50 million. TIMKEN COMPANY: Earns $222.53 Million in Year Ended 2006 -------------------------------------------------------- The Timken Company reported net sales for the year ended Dec. 31, 2006, of approximately $4.97 billion, as compared with $4.82 billion in 2005, in its annual financial statements filed with the Securities and Exchange Commission. Net income earned for the year ended Dec. 31, 2006, was $222.53 million, down from $260.28 million for the year ended Dec. 31, 2005. At Dec. 31, 2006, total assets increased by $37.8 million, to $4.03 billion, from $3.99 billion at Dec. 31, 2005. This increase was primarily due to increased property, plant and equipment - net, and working capital from continuing operations required to support higher sales, partially offset by the decrease in assets of discontinued operations that were part of the sale of Latrobe Steel. Total current assets at Dec. 31, 2006 were $1.9 million as compared with $1.98 million in 2005. The decrease in total current assets reflected decreases of $12.1 million in deferred income tax, $6.8 million in deferred charges and prepaid expenses, $162.2 million in current assets of discontinued operations, and $5.7 in other current assets, partially offset by increases of $35.7 million in cash and cash equivalents, $16.1 million in net accounts receivable, and $52 million of net inventories. The company lowered its total current debt to $835.56 million at Dec. 31, 2006, from $1.07 billion in 2005, primarily through lower salaries, wages, and benefits of $225.40 million in 2006, from $364.02 million in 2005. Total debt was $597.8 million at December 31, 2006 compared to $720.9 million at Dec. 31, 2005. Net debt was $496.7 million at December 31, 2006 compared to $655.5 million at Dec. 31, 2005. Credit Facilities At Dec. 31, 2006, the company had no outstanding borrowings under its $500 million Amended and Restated Credit Agreement Senior Credit Facility that matures on June 30, 2010. It also had no outstanding borrowings under its letters of credit outstanding totaling $33.8 million, which reduced the availability under the Senior Credit Facility to $466.2 million. At Dec. 31, 2006, the company was in full compliance with the covenants under the Senior Credit Facility and its other debt agreements. At Dec. 31, 2006, the company had no outstanding borrowings under the company's Asset Securitization, which provides for borrowings up to $200 million, limited to certain borrowing base calculations, and is secured by certain domestic trade receivables of the company. At Dec. 31, 2006, there were letters of credit outstanding totaling $16.7 million, which reduced the availability under the Asset Securitization to $183.3 million. The company expects that any cash requirements in excess of cash generated from operating activities will be met by the availability under its Asset Securitization and Senior Credit Facility. It believes it has sufficient liquidity to meet its obligations through 2010. Sales by Segment For the year 2006, the company's Industrial, Automotive, and Steel Group had sales of $2.07 billion, $1.57 billion, and $1.33 billion, respectively. Total sales from each of the segments were $4.97 billion for the year ended Dec. 31, 2006. Restructuring In September 2006, the company announced further planned reductions in its Automotive Group workforce of approximately 700 associates. These plans are targeted to deliver annual pretax savings of approximately $35 million by 2008, with pretax costs of approximately $25 million. In December 2006, the company completed the divestiture of its Steering business located in Watertown, Connecticut and Nova Friburgo, Brazil, resulting in a loss on divestiture of $54.3 million. The Steering business employed approximately 900 associates. In December 2006, the company completed the divestiture of its Latrobe Steel subsidiary. A full-text copy of the company's annual report is available for free at http://ResearchArchives.com/t/s?1aac. About The Timken Company Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- manufactures highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial, and railroad industries. The Company has operations in 27 countries, including Brazil, and employs 27,000 employees. * * * As reported in the Troubled Company Reporter on Oct. 30, 2006, Moody's Investors Service confirmed The Timken Company's Ba1 Corporate Family Rating and the Ba1 rating on the company's $300 Million Unsecured Medium Term Notes Series A due 2028. TOWER RECORDS: Court OKs Pact Expanding Consor's Retention Scope ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved a stipulation among MTS Inc. dba Tower Records, its debtor- affiliates, the Official Committee of Unsecured Creditors, and an informal committee of secured trade vendors expanding Consor Intellectual Asset Management's scope of services. Pursuant to that stipulation, Consor will now manage the marketing and sale of the Debtors' intellectual properties under the direction of the Debtors and in consultation with the Committees. The Creditors Committee had retained Consor as its intellectual property valuation consultant pursuant to a Court-order dated Dec. 20, 2006. For its services under the modified retention agreement, Consor will receive: a) a non-refundable fee of $100,000 upon Court approval of the retention application; b) an incentive and success fee out of the sale proceeds upon closing of any sale transaction for each or all of the IP assets as follows: -- on the first $2,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions, no success fee will be payable to Consor; -- after generating the first $2,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions, the success fee payable to Consor will be 5% of the increment in excess of $2,000,000 up to $4,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions; -- after generating the first $4,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions, the success fee payable to Consor will be 10% of the increment in excess of $4,000,000 up to $6,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions; and -- after generating the first $6,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions, the success fee payable to Consor will be 15% of the increment in excess of $6,000,000 of the gross consideration received by or for the benefit of the Debtors' estates for all transactions. To the best of the parties' knowledge, Consor does not hold any interest adverse to the Debtors' estate. Consor has started marketing the IP Assets in January 2007. 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 its affiliates previously filed for chapter 11 protection on Feb. 9, 2004 (Bankr. D. Del. Lead Case No. 04-10394). The Court confirmed the Debtors' plan on March 15, 2004. The company and seven of its affiliates filed their second voluntary chapter 11 petition 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. The Official Committee of Unsecured Creditors is represented by McGuirewoods LLP and Cozen O'Connor. 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 plan expires on March 26, 2007. TRIPOS INC: ISS Urges Shareholders to Vote for Liquidation Plan --------------------------------------------------------------- Institutional Shareholder Services, the leading independent proxy advisor to the institutional marketplace, has recommended that Tripos Inc. shareholders vote for the proposed sale of its Discovery Informatics business to Vector Capital LLC and for the proposed plan of liquidation and dissolution. These proposals will be presented at the March 15 special meeting of Tripos shareholders. As reported in the Troubled Company Reporter on Nov. 24, 2006, Tripos entered into a definitive agreement to sell substantially all of the assets of its Discovery Informatics business to Vector Capital. This asset sale, expected to close in the first quarter of 2007, is an initial step in the liquidation of Tripos. Liquidating distributions, in an amount to be determined, are expected to begin approximately six months after the closing of this transaction. Tripos' preliminary estimate is that there would be between $6 million to $12 million available for distribution to common stockholders assuming completion of the sale of its Discovery Informatics business to Vector, sale of its Discovery Research business, completion of certain other transactions described below, and satisfaction of all liabilities at amounts currently estimated. In recommending for the asset sale, the ISS report stated, "Based on our review of the comprehensive sale process, the impending need for the company to raise funds to meet debt obligations, and the declining trend in core business, we recommend shareholders support the asset sale proposal." In recommending for the liquidation proposal, the ISS report stated, "Since the company will have no business or operations following the asset sale, which we support, we believe that this proposal warrants shareholder support." Shareholders are encouraged to read Tripos' proxy materials in their entirety. Shareholders who have questions or need voting assistance should contact Tripos' proxy solicitor, Morrow & Co., Inc., at (203) 658- 9400 or toll-free at (800) 607-0088. Tripos, Inc. -- http://www.tripos.com/-- (Nasdaq:TRPS) combines leading-edge technology and innovative science to deliver consistently superior chemistry-research products and services for the biotechnology, pharmaceutical and other life science industries. Within Tripos' Discovery Informatics business, the company provides software products and consulting services to develop, manage, analyze and share critical drug discovery information. Within Tripos' Discovery Research business, Tripos' medicinal chemists and research scientists partner directly with clients in their research initiatives, leveraging state-of-the-art information technologies and research facilities. TXU CORP: Up to $5.4 Million in Investor Assets Freezed ------------------------------------------------------- A federal judge granted an emergency order sought by regulators to freeze as much as $5.4 million in investor assets for apparent illegal insider trading ahead of TXU Corp.'s buyout announcement, Reuters reported on its Web site Friday. A group of unknown investors "were in possession of material, nonpublic information" ahead of the company's Feb. 26 announcement of a $31.8 billion buyout by private equity groups, Reuters said, citing the Securities and Exchange Commission's statement in a complaint filed with the U.S. District Court in Chicago. According to the report, the SEC alleged that the unknown buyers bought at least 8,020 call option contracts for TXU common stock in advance of the announcement, and are in a position to receive more than $5.3 million in trading profits. The source relates that a temporary restraining order issued by the court on Friday called upon the investors to identify themselves and their financial accounts, and barred them from destroying any of their financial records. TXU declined to comment on the SEC allegations or court action. Merger Deal with Kohlberg Kravis, et al. As reported in the Troubled Company Reporter on Mar. 1, 2007, TXU, together with Kohlberg Kravis Roberts & Co. and Texas Pacific Group, private equity firms, and Goldman Sachs & Co., a private investment bank, executed a definitive merger agreement under which an investor group led by KKR and TPG will acquire TXU in a transaction valued at $45 billion. GS Capital Partners, Lehman Brothers, Citigroup and Morgan Stanley intend to be equity investors at closing. Under the terms of the merger agreement, shareholders will be offered $69.25 per share at closing, which represents a 25% premium to the average closing share price over the 20 days ending Feb. 22, 2007. Fitch Warns 'B' Category Ratings In its 2006 10-K filing, TXU Corp. disclosed that the acquirers have obtained commitments from financial institutions for $24.6 billion of debt financing to fund the leveraged buyout transaction and that a substantial amount of the debt would be incurred at the company's subsidiary, TXU Energy Co. LLC. The Energy borrowings would be secured by substantially all assets of Energy and its subsidiaries, and guaranteed by substantially all of the subsidiaries of Energy. In addition, a portion of the acquisition debt would be raised by the parent company, TXU. If the transaction financing is completed as disclosed, Fitch expects that the IDRs for TXU, TXU US Holdings Inc., and Energy would be lowered to approximately the 'B' category. According to Fitch, the acquirers have represented that they will not add incremental leverage to the regulated transmission and distribution utility, TXU Delivery to fund the acquisition and that its operations and financial activities would be significantly separated from its affiliates. Thus, Fitch said, the post- acquisition ratings of Delivery could be substantially higher than those of TXU, if Fitch finds that Delivery is sufficiently ring- fenced from its affiliates. Fitch noted that TXU expects the transaction to be completed towards the end of 2007 and the financing plan may change in the interim. "The transaction will have to clear a number of federal and possibly state regulatory closing hurdles. Legislation has been proposed in Texas, that if passed, would require the parties to obtain Public Utility Commission of Texas approval of the transaction," Fitch explained. "Additionally, while the acquisition has been approved by TXU's Board of Directors, TXU is five days into a 50 day 'go shop' period contained in the Merger Agreement which allows TXU to solicit and engage in discussions and negotiations with respect to competing proposals." On Feb. 26, 2007, Fitch downgraded the ratings of TXU and its subsidiaries and placed the issuers on Ratings Watch Negative following the company's buyout announcement. The ratings actions were based on Fitch's concerns that the acquisition of TXU would be funded through a highly levered entity, or result in the incurrence of substantial indebtedness at the TXU holding company or subsidiary levels. About TXU Corp. Headquartered in Dallas, Texas, TXU Corp. (NYSE: TXU) -- http://www.txucorp.com/-- is an energy company that manages a portfolio of competitive and regulated energy businesses in North America. In TXU Corp.'s unregulated business, TXU Energy provides electricity and related services to 2.5 million competitive electricity customers in Texas, more customers than any other retail electric provider in the state. TXU Power has over 18,300 megawatts of generation in Texas, including 2,300 MW of nuclear and 5,837 MW of lignite/coal-fired generation capacity. * Crowell & Moring Adds Nine Lawyers to New York Office ------------------------------------------------------- Crowell & Moring LLP has bolstered its New York office through the addition of nine financial services and distressed debt lawyers, including partners William M. O'Connor, Robert G. Frucht, and Evelyn H. Seeler. The team, whose representative institutional and hedge fund clients include Wachovia Bank, Lehman Brothers, UBS, and Silver Point Capital, joins Crowell & Moring's Corporate and Litigation groups. Crowell & Moring's New York office will now comprise 29 lawyers after opening just five months ago. The lawyers come from Buchanan Ingersoll & Rooney PC. "We are thrilled to bring on a team that comes with long-standing connections to Wall Street and rich experience in the financial services arena," Kent A. Gardiner, Crowell & Moring chairman, said. "Our Corporate Group has served clients on the transactional side for many years, across our U.S. and European offices. We are now poised to expand the range of services we provide clients, particularly financial institutions who need the interdisciplinary counsel of a law firm that operates internationally." Mr. O'Connor, who leads the financial institutions team coming to Crowell & Moring, is a former member of Buchanan's Board of Directors and managing shareholder of its New York office. He will lead the New York-based creditors' rights team that represents leading financial institutions in a range of concerns, including litigation, loan workouts, bankruptcies, restructurings, debt portfolio acquisitions, international documentary credits, multinational insolvencies, and Foreign Sovereign Immunity Act cases. The team also includes partners Seeler and Frucht and consists of seasoned transactional and trial lawyers who work to solve the diverse challenges that its financial clients confront -- from conducting due diligence in distressed deals for hedge funds to advising on public and private offerings on debt and equity securities. In addition to the three partners, the team includes four counsel: Douglas R. Arntsen, Timothy J. Fierst, Prassana Mahadeva, and James Maisano. Associates joining the firm include Genelle R. Francis and Jamie Krapf. "It is exciting to help build a New York office with a firm that has a premier track record in achieving its strategic vision while maintaining its core values of who they are and how they engage in client service," Mr. O'Connor said. "Our team will join with Crowell & Moring's growing corporate and litigation practices to expand the scope of services the firm provides, and I am particularly eager to work with the London and Brussels offices as my clients and their interests become increasingly international." In 2006, the firm's Corporate Group was ranked by The Legal 500 US-Volume I (Corporate and Finance) for its mergers and acquisitions work. Headquartered in Washington, D.C., Crowell & Moring LLP -- http://www.crowell.com/-- is a full-service law firm with nearly 350 lawyers practicing in litigation, antitrust, government contracts, corporate, intellectual property and more than 40 other practice areas. More than two-thirds of the firm's lawyers regularly litigate disputes on behalf of domestic and international corporations, start-up businesses, and individuals. Crowell & Moring's extensive client work ranges from advising on one of the world's largest telecommunications mergers to representing governments and corporations on international arbitration matters. The firm also has offices in California, New York, London, and Brussels. * Hunton & Williams Taps P. Bruening as Deputy Executive Director ----------------------------------------------------------------- Paula J. Bruening has joined Hunton & Williams LLP as Deputy Executive Director for The Center for Information Policy Leadership and Senior Policy Advisor at the firm. Ms. Bruening was counsel at the Center for Democracy & Technology, a nonprofit, public interest organization, where she focused on cyber-privacy issues. She will be based in the firm's Washington office. "Paula brings the special skills necessary to create collaborative solutions in an information age," Marty Abrams, The Center's executive director, in announcing the appointment, said. "She understands the intersection between policy and technology, which is so important when looking at emerging privacy issues including those arising in technologies such as RFID and social networks." "Paula brings a nongovernmental organization perspective on privacy and information security issues that complements and further balances our work," Orson Swindle, senior policy advisor and chair of security initiatives at The Center, said. "She believes in the importance of taking 'steps to solutions' and will help The Center raise awareness among industry leaders and decision makers of the critical realm of information security and of the differing regional privacy regimes around the globe. I very much look forward to working with her." "Privacy laws around the world are changing," Maureen Cooney, counsel in the firm's Washington office, who also serves as senior policy advisor for global privacy strategies at The Center, added. "There is an evolution in the industry in terms of technology, and companies want to know what security measures need to be built into future systems. Paula has worked on cutting-edge technology and brings that experience to the firm, which will help The Center prepare businesses for the next generation of privacy laws." Center member companies are delighted with Paula's addition to Center Leadership," Sandra Hughes, chief privacy executive at Procter & Gamble, said. "Many of us worked with Paula both on the RFID Privacy Guidelines and APEC Privacy Framework. Few leaders are better at bridging differences between various business and consumer constituencies." At The Center, Ms. Bruening joins well-known privacy professionals Abrams, Swindle, and Fred H. Cate. Ms. Bruening will also work closely with Hunton & Williams' noted privacy lawyers including Cooney, Lisa J. Sotto and Christopher Kuner. Ms. Bruening will regularly collaborate with a diverse, vibrant team of privacy and information security authorities who understand that information must be monitored on a global basis as it travels across countries' borders to meet both individual consumer and corporate needs. Ms. Bruening received her undergraduate degree from John Carroll University and law degree from Case Western Reserve University School of Law. She is a frequent author and lecturer on information policy issues in the US and Europe. She began her work in information policy at the US Congress Office of Technology Assessment. Prior to her role with the Center for Democracy & Technology, she was the director of compliance and policy for TRUSTe, the online privacy seal program, where she was responsible for compliance and working with the government on evolving privacy policy. While with TRUSTe, she served on the Federal Trade Commission Advisory Committee on Access and Security. Before that, Bruening was senior attorney-advisor for the Office of Chief Counsel at the National Telecommunications and Information Administration, US Department of Commerce. There, she worked closely with the White House to advise the Clinton Administration on a wide range of domestic and international electronic commerce and internet issues. She has also served as an onsite consultant to the Organisation for Economic Co-operation and Development in Paris and has worked with governments of emerging and transitional economies on issues of telecommunications liberalization and e- commerce and privacy law. About Hunton & Williams Hunton & Williams LLP provides legal services to corporations, financial institutions, governments and individuals, as well as to a broad array of other entities. Since its establishment more than a century ago, Hunton & Williams has grown to more than 875 attorneys serving clients in 100 countries from 18 offices around the world. While its practice has a strong industry focus on energy, financial services and life sciences, the depth and breadth of its experience extends to more than 60 separate practice areas, including bankruptcy and creditors rights, commercial litigation, corporate transactions and securities law, intellectual property, international and government relations, regulatory law, products liability, and privacy and information management. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Upcoming Meetings, Conferences and Seminars March 9, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Forum Mid-Day Club, Chicago, IL Contact: http://www.turnaround.org/ March 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth AZ Chapter Meeting Biltmore Hotel, Phoenix, AZ Contact: http://www.turnaround.org/ March 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Great Debate Sydney, Australia Contact: http://www.turnaround.org/ March 14-15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Atlanta, GA Contact: http://www.turnaround.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner Event - "Judges Panel" Athletic Club Seattle, WA Contact: http://www.turnaround.org/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI Turnaround Management Event Long Island, NY Contact: http://www.turnaround.org/ March 15-18, 2007 NATIONAL ASSOCIATION OF BANKRUTPCY TRUSTEES NABT Spring Seminar Ritz-Carlton Buckhead, Atlanta, GA Contact: http://www.NABT.com/ March 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Martini Madness Cocktail Reception with Geraldine Ferraro Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ March 20, 2007 THOMSON WEST LEGALWORKS Insurance and Reinsurance Allocation Superbowl New York, NY Contact: http://www.westlegalworks.com/ March 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Cost of Government with Kevin P. Gaughan Buffalo Club, Buffalo, NY Contact: http://www.turnaround.org/ March 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Happy Hour TBD, St. Louis, MO Contact: 314-333-3815 or http://www.turnaround.org/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Automotive Conference Atheneum Hotel, Detroit, MI Contact: http://www.turnaround.org/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Event with Institute of Management Accountants - Role of Consultants in the Turnaround Industry Cherry Creek Holiday Inn, Denver, CO March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION The Next Wave of Distressed Businesses: A Panel Discussion South Florida Contact: http://www.turnaround.org/ March 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Toot Your Own Horn - This event is for members only. Pronto Cena, Newark, NJ Contact: 908-575-7333 or http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Reception Co-Sponsored with IWIRC Hartford Club, Hartford, CT Contact: 203-265-2048 or http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ Chapter Meeting TBA Contact: http://www.turnaround.org/ March 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia Launch Melbourne Hotel, Perth, WA, Australia Contact: http://www.turnaround.org/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lunch Seminar Kansas City, MO Contact: http://www.turnaround.org/ March 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION "The Six Keys of Sustained Profitable Growth" Rodney Page, Senior Partner of Blue Springs Partners Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ March 27-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spring Conference Four Seasons Las Colinas, Dallas, TX Contact: http://www.turnaround.org/ March 28-31, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Four Seasons Las Colinas, Dallas, TX Contact: http://www.turnaround.org/ March 29-31, 2007 AMERICAN LAW INSTITUTE - AMERICAN BAR ASSOCIATION Chapter 11 Business Reorganizations Scottsdale, AZ Contact: 1-800-CLE-NEWS; http://www.ali-aba.org/ March 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION 10th Annual April Fools' Networking Cocktail Reception University Club, New York, NY Contact: 646-932-5532 or http://www.turnaround.org/ March 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Zinifex/Pasminco - What a ride? Ferriers, Melbourne, Australia Contact: http://www.turnaround.org/ April 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Case Study "When Everything Goes Wrong" University of Florida, Gainesville, FL Contact: http://www.turnaround.org/ April 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Pal's Cabin, West Orange, NJ Contact: 908-575-7333 or http://www.turnaround.org/ April 11-15, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Annual Spring Meeting J.W. Marriott, Washington, DC Contact: 1-703-739-0800; http://www.abiworld.org/ April 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC 4th Spring Luncheon and Founders Awards Washington, DC Contact: http://www.iwirc.org/ April 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ April 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - East JW Marriott, Washington, DC Contact: http://www.abiworld.org/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth AZ Chapter Meeting Biltmore Hotel, Phoenix, AZ Contact: http://www.turnaround.org/ April 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Breakfast with Association for Corporate Growth Woodbridge Hilton, Iselin, NJ Contact: 908-575-7333 or http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Personnel Issues in Bankruptcy University Club, Portland, OR Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast: Program on Fraud and Forensic Investigations Athletic Club, Denver, CO Contact: http://www.turnaround.org/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast Tyson's Corner Marriott, Vienna, VA Contact: 215-657-5551 or http://www.turnaround.org/ April 19-20, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Eighth Annual Conference on Healthcare Transactions Successful Strategies for Mergers, Acquisitions, Divestitures, and Restructurings The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ April 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting Social TBA, Long Island, NY Contact: 631-251-6296 or http://www.turnaround.org/ April 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ April 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION "Why Prospects Become Clients" Mark Fitzgerald, President of Sales Training Institute Inc Centre Club, Tampa, FL Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Jacksonville Zoo Turnaround University Club, Jacksonville, FL Contact: http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Golf/Spa Outing Fox Hopyard Golf Club, East Haddam, CT Contact: 203-265-2048 or http://www.turnaround.org/ April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Spa Outing Mohegan Sun, Uncasville, CT Contact: 203-265-2048 or http://www.turnaround.org/ April 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 1st Annual Credit & Bankruptcy Symposium Mohegan Sun, Uncasville, CT Contact: http://www.turnaround.org/ April 26-28, 2007 ALI-ABA Fundamentals of Bankruptcy Law Philadelphia, PA Contact: http://www.ali-aba.org April 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ Chapter Meeting - Working Effectively with the Media to Create Publicity for Your Business TBA Contact: http://www.turnaround.org/ April 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Washington University, St. Louis, MO Contact: http://www.turnaround.org/ April 29 - May 1, 2007 INTERNATIONAL BAR ASSOCIATION International Insolvency Conference Zurich, Switzerland Contact: http://www.ibanet.org/ May 2-4, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth AZ Chapter Meeting Washington University, AZ Contact: http://www.turnaround.org/ May 4, 2007 AMERICAN BANKRUPTCY INSTITUTE Nuts and Bolts for Young Practitioners - NYC Alexander Hamilton US Custom House, SDNY New York, NY Contact: http://www.abiworld.org/ May 7, 2007 AMERICAN BANKRUPTCY INSTITUTE 9th Annual New York City Bankruptcy Conference Millennium Broadway Hotel & Conference Center New York, NY Contact: http://www.abiworld.org/ May 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual TMA Atlanta Golf Outing White Columns, Atlanta, GA Contact: 678-795-8103 or http://www.turnaround.org/ May 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION Corporate Restructuring Workshop Cable Center, Denver, CO Contact: http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ May 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Bankruptcy Judges Panel Marriott North, Fort Lauderdale, FL Contact: http://www.turnaround.org/ May 17-18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Great Lakes Regional Conference Renaissance Quail Hollow Resort, Painesville, OH Contact: http://www.turnaround.org/ May 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Valuation / Sale of the Distressed Business Athletic Club, Seattle, WA Contact: http://www.turnaround.org/ May 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 13 Week CF Program Kansas City, MO Contact: http://www.turnaround.org/ May 21, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI-TMA Annual Golf Outing TBD, Long Island, NY Contact: 631-251-6296 or http://www.turnaround.org/ May 24-25, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Fourth Annual Conference on Distressed Investing Europe Maximizing Profits in the European Distressed Debt Market Le Meridien Piccadilly Hotel - London, UK Contact: 800-726-2524; http://renaissanceamerican.com/ May 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ and RMA Joint Meeting Hotel Valley Ho, Scottsdale, AZ Contact: http://www.turnaround.org/ May 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ May 30-31, 2007 FINANCIAL RESEARCH ASSOCIATES Distressed Debt Harvard Club, New York, NY Contact: http://www.frallc.com/ May 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting and Casino Night Mayfair Farms, West Orange, NJ Contact: 908-575-7333 or http://www.turnaround.org/ May 31 - June 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2nd Annual TMA Southeast Regional Conference Marriott Resort at Grande Dunes Myrtle Beach, SC Contact: http://www.turnaround.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference JW Marriott Spa and Resort, Las Vegas, NV Contact: http://http://www.airacira.org// June 6-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Mid-Atlantic Regional Symposium Borgata Hotel Casino & Spa Atlantic City, NJ Contact: http://www.turnaround.org/ June 6-9, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 23rd Annual Bankruptcy & Restructuring Conference Westin River North, Chicago, IL Contact: http://www.airacira.org/ June 7-8, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mealey's Asbestos Bankruptcy Conference Intercontinental Hotel, Chicago, IL Contact: http://www.turnaround.org/ June 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Association for Corporate Growth AZ Chapter Meeting Biltmore Hotel, Phoenix, AZ Contact: http://www.turnaround.org/ June 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Economic Update at the 1/2 Year Mark University Club, Portland, OR Contact: http://www.turnaround.org/ June 14-17, 2007 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, MI Contact: 1-703-739-0800; http://www.abiworld.org/ June 21-22, 2007 BEARD GROUP AND RENAISSANCE AMERICAN CONFERENCES Tenth Annual Conference on Corporate Reorganizations Successful Strategies for Restructuring Troubled Companies The Millennium Knickerbocker Hotel - Chicago Contact: 800-726-2524; http://renaissanceamerican.com/ June 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel Centre Club, Tampa, FL Contact: http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, WY Contact: http://www2.nortoninstitutes.org July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, FL Contact: http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, RI Contact: 1-703-739-0800; http://www.abiworld.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, NJ Contact: 908-575-7333 or http://www.turnaround.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, IL Contact: http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, SC Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ Chapter Meeting Contact: http://www.turnaround.org/ July 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Golf Outing Raritan Valley Country Club, Bridgewater, NJ Contact: 908-575-7333 or http://www.turnaround.org/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ August 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, NJ Contact: 908-575-7333 or http://www.turnaround.org/ August 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, IL Contact: http://www.turnaround.org/ August 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, MD Contact: http://www.abiworld.org/ August 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, IL Contact: http://www.nabt.com/ August 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, NJ Contact: 908-575-7333 or http://www.turnaround.org/ August 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, FL Contact: http://www.turnaround.org/ August 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, NY Contact: http://www.turnaround.org/ September 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, NV Contact: http://www.turnaround.org/ September 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons Las Vegas, NV Contact: http://www.abiworld.org/ September 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, IL Contact: http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, FL Contact: http://www.turnaround.org/ September 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ September 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ September 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, NJ Contact: 908-575-7333 or http://www.turnaround.org/ September 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ Chapter Meeting Contact: http://www.turnaround.org/ September 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ October 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, NJ Contact: 908-575-7333 or http://www.turnaround.org/ October 9-10, 2007 IWIRC Orlando, FL IWIRC Annual Fall Conference Contact: http://www.iwirc.org/ October 10-13, 2007 NCBJ 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ October 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Orlando, FL Contact: http://www.ncbj.org/ October 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, MA Contact: 312-578-6900; http://www.turnaround.org/ October 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Contact: http://www.turnaround.org/ October 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA AZ Chapter Meeting Contact: http://www.turnaround.org/ October 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, FL Contact: 561-882-1331 or http://www.turnaround.org/ October 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees,Vendors and Media Centre Club, Tampa, FL Contact: http://www.turnaround.org/ November 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, NJ Contact: 908-575-7333 or http://www.turnaround.org/ November 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner South FL Contact: 561-882-1331 or http://www.turnaround.org/ November 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, OR Contact: 206-223-5495 or http://www.turnaround.org/ November 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, FL Contact: http://www.turnaround.org/ November 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, NJ Contact: 908-575-7333 or http://www.turnaround.org/ November 29, 2007 TMA AZ Chapter Meeting TURNAROUND MANAGEMENT ASSOCIATION Contact: http://www.turnaround.org/ December 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, WA Contact: 206-223-5495 or http://www.turnaround.org/ December 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, CA Contact: 1-703-739-0800; http://www.abiworld.org/ December 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South FL Contact: 561-882-1331 or http://www.turnaround.org/ January 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, FL March 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, FL Contact: http://www.turnaround.org/ April 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, DC Contact: http://www.abiworld.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, MI Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, MA Contact: http://www.turnaround.org/ July 31 - August 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, MD Contact: http://www.abiworld.org/ August 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, FL Contact: http://www.abiworld.org/ September 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, AZ Contact: http://www.ncbj.org/ October 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, LA Contact: 312-578-6900; http://www.turnaround.org/ December 4-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, AZ Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, MD Contact: http://www.abiworld.org/ September 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, NV Contact: http://www.abiworld.org/ October 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, AZ Contact: 312-578-6900; http://www.turnaround.org/ 2009 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Las Vegas, NV Contact: http://www.ncbj.org/ June 21-24, 2009 INSOL 8th International World Congress TBA Contact: http://www.insol.org/ October 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, FL Contact: http://www.turnaround.org/ 2010 (TBA) NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges New Orleans, LA Contact: http://www.ncbj.org/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* 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, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Cherry A. Soriano-Baaclo, Melvin C. Tabao, Melanie C. Pador, Tara Marie A. Martin, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2007. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***