/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070605.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, June 5, 2007, Vol. 11, No. 132 Headlines 5838 GLENDORA: Case Summary & Four Largest Unsecured Creditors ABRAXAS PETROLEUM: Inks Pact Contributing Assets to Abraxas Energy ACRO BUSINESS: Judge Kressel Confirms Ch. 11 Plan of Liquidation ACTUANT CORP: Launches Private Offering of $250MM of Senior Notes ADVANSTAR COMM: Veronis Suhler Buys Advanstar Holdings for $1.1BB ALMA ENERGY: Voluntary Chapter 11 Case Summary AMERICAN COMMERCE: Pender Newkirk Raises Going Concern Doubt AMERITRADE HOLDING: Fitch Affirms BB+ Ratings on $1.9 Billion Loan ANNETTE PASSE: Voluntary Chapter 11 Case Summary ASSET BACKED: Fitch Affirms Low-B Ratings on 2 Certificate Classes ASSET BACKED: Fitch Affirms Low-B Ratings on Three Certificates ASTRATA GROUP: Squar Milner Raises Going Concern Doubt ATLAS PIPELINE: To Buy Anadarko Petroleum's Chaney & Midkiff Stake BANC OF AMERICA: Fitch Puts Low B Ratings on 2007-D $1.3MM Certs. BANC OF AMERICA: Fitch Puts Low-B Ratings on 2 2007-2 Certificates BCE INC: Billionaire Richard Li Joins Cerberus in Takeover Bid BCE INC: CTRC Rejects Increase of Local Phone Service Rates BEAR STEARNS: Fitch Puts Low-B Ratings on $2.9 Mil. Certificates BEDFORD THROOP: Voluntary Chapter 11 Case Summary BLANCA GOMEZ: Case Summary & Eight Largest Unsecured Creditors CEDAR LAKE: Case Summary & 11 Largest Unsecured Creditors CENTENE CORP: Appoints 5 Senior Staff to Vice-President Positions CHASE MORTGAGE: Fitch Puts Low-B Ratings on Two Mortgage Classes CHL MORTGAGE: Fitch Puts Low-B Ratings on $1.95MM Certificates CINCINNATI BELL: Enters Second Amendment to Credit Agreement CITIGROUP MORTGAGE: Fitch Puts Low B Ratings on Two Cert. Classes CITIMORTGAGE ALTERNATIVE: Fitch Puts Low-B Ratings on Two Certs. CKE RESTAURANTS: Reports Same-Store Sales for Carl's & Hardee's CLEVELAND-CLIFFS: Names William Boor as Business Development SVP COASTAL EXPRESS: Voluntary Chapter 11 Case Summary COLE BROTHERS: Case Summary & 16 Largest Unsecured Creditors CREDIT SUISSE: Fitch Affirms BB+ Rating on 2006-4 Class B-3 Certs. CREST CLARENDON: Fitch Affirms BB Rating on $10 Million Notes CWALT INC: Fitch Puts Low-B Ratings on $4.9 Million Certificates CWALT INC: Fitch Puts Low-B Ratings on $4.24 Million Certificates CWMBS INC: Fitch Assigns Low-B Ratings on $2.45 Mil. Certificates CWMBS INC: Fitch Puts Low-B Ratings on Two Certificate Classes DAIMLERCHRYSLER AG: Chrysler Group's May 2007 U.S. Sales Rise 4% DALE BOHAN: Voluntary Chapter 11 Case Summary DEUTSCHE SECURITIES: Fitch Rates $8 Million Certificates at BB DUQUESNE LIGHT: Fitch Pares Issuer Default Rating to BB+ from BBB- ENCYSIVE PHARMACEUTICALS: 72.9 Million Shares Issued at June 1 ENESCO GROUP: Hires Baker & McKenzie as Hong Kong Tax Counsel ENRON CORP: Inks $61.5 Million Credit Suisse Settlement Agreement ENZON PHARMA: March 31 Balance Sheet Upside-down by $55.5 Million EPIX PHARMA: March 31 Balance Sheet Upside-down by $50.8 Million FIRST HORIZON: Fitch Puts Low-B Ratings on $7.88 Mil. Certificates FORD MOTOR: May 2007 Sales Up by 9.4%, Truck Sales Up by 25% GENERAL MOTORS: May 2007 Sales Up by 8.5% GRAFTECH INT'L: March 31 Balance Sheet Upside-down by $90 Million GREAT PANTHER: Appoints Raakel Iskanius as Chief Financial Officer HEALTHSOUTH COR: Sells Birmingham Campus for $60 Million HEMAGIN DIAGNOSTICS: March 31 Balance Sheet Upside-Down by$1.3MM HSI ASSET: Fitch Puts Low-B Ratings on $2.9 Million Certificates HSI ASSET: Fitch Puts BB+ Rating on Class M-10 Certificates HOLLY MARINE: Court Okays Feeley & Associates as Special Counsel I2 TECHNOLOGIES: March 31 Balance Sheet Upside-down by $15.5 Mil. INTERTAPE POLYMER: Chief Financial Officer A. Archibald Resigns J. CREW GROUP: Earns $24.6 Million in Quarter Ended May 5 JP MORGAN: Fitch Puts Low-B Ratings on $2.5 Million Certificates JP MORGAN: Fitch Puts Low B Ratings on $5 Million Certificates JP MORGAN: Fitch Puts-Low B Ratings on $5.1-Million Certificates KANDERSTEG INC: Voluntary Chapter 11 Case Summary KUSHNER-LOCKE: Can Continue Use of JP Morgan's Cash Collateral LASALLE COMMERCIAL: Fitch Puts Low-B Ratings on Five Cert. Classes LEAP WIRELESS: Cricket Prices $350MM Senior Notes Private Offering LYONDELL CHEMICAL: Fitch to Rate $500 Million Notes at BB- M/I HOMES: Fitch Affirms BB Issuer Default Rating MARIA DELGADO: Voluntary Chapter 11 Case Summary MEDWAVE INC: Posts $753,003 Net Loss in Quarter Ended March 31 MERRILL LYNCH: Fitch Puts Low-B Ratings on $5.1Mil. Certificates MID OCEAN: Fitch Pares Ratings on $31.5 Million Certs. to C MORGAN STANLEY: Fitch Holds C Rating on $406,100 Class H Loan MORGUARD REAL: DBRS Confirms Issuer Rating at BB (high) MTI TECHNOLOGY: Nasdaq Delists Securities Effective June 1 NARROWSTEP INC: Losses Spurs Auditor's Going Concern Opinion OUR LADY OF MERCY: Committee Hires Alvarez & Marsal as Fin. Advsr. PATIENT PORTAL: Walden Certified Raises Going Concern Doubt PETER LAFURIA: Voluntary Chapter 11 Case Summary PHH MORTGAGE: Fitch Puts B Rating on $240,829 Class B-5 Certs. PRIMEDIA INC: Board Approves Special Bonuses to Executive Officers QUEBECOR MEDIA: Stock Buyout Cues DBRS to Review Ratings RELIANT ENERGY: Fitch Rates Planned $1.25-Billion Notes at B+ RESIDENTIAL ACCREDIT: Fitch Puts Low-B Ratings on $7.2MM Certs. RESIDENTIAL ASSET: S&P Lowers Ratings on Two Certificates RESIDENTIAL ASSET: Fitch Pares Ratings on Four Certificate Classes RESIDENTIAL FUNDING: Fitch Puts Low B Ratings on Two Cert. Classes RITE AID: FTC Gives Nod on Brook and Eckerd Acquisition RKS SERVICE: Case Summary & 15 Largest Unsecured Creditors ROCK & WATERSCAPE: Case Summary & 20 Largest Unsecured Creditors ROYAL CORDAGE: Case Summary & Eight Largest Unsecured Creditors RURAL CELLULAR: Sells $425 Mil. of Sr. Notes in Private Placement SHEARSON FINANCIAL: Posts $787,324 Net Loss in Qtr. Ended March 31 SPANSION LLC: Prices $75 Million of Senior Secured Notes SPECIALTY UNDERWRITING: Fitch Junks Rating on Two Certificates ST. GEORGE CRYSTAL: Voluntary Chapter 11 Case Summary STATION CASINOS: March 31 Balance Sheet Upside-Down by $178.4 Mil. STRUCTURED ASSET: Fitch Puts Low-B Ratings on Two Certificates STRUCTURED ASSET: Fitch Assigns BB+ Rating on $8.5-Mil. Certs. SUNCOM WIRELESS: March 31 Balance Sheet Upside-Down by $433.1 Mil. TESORO PETROLEUM: Fitch Rates New $500 Million Senior Notes at BB TOWN SPORTS: March 31 Balance Sheet Upside-Down by $20.3 Million TRIBUNE CO: Completes Offer with 126 Million Shares Tendered TRIBUNE CO: Matthew Bender Tax Case Settlement Offer Pending TURNAGE HOLDINGS: Voluntary Chapter 11 Case Summary VESCOR CAPITAL: Case Summary & 21 Largest Unsecured Creditors WEIGHT WATCHERS: March 31 Balance Sheet Upside-Down by $1 Billion WELLS FARGO: Fitch Puts Low B Ratings on $15.3 Mil. Certificates WINDSTREAM CORP: Fitch Affirms BB+ IDR on CT Communication Deal * Large Companies with Insolvent Balance Sheets ********* 5838 GLENDORA: Case Summary & Four Largest Unsecured Creditors -------------------------------------------------------------- Debtor: 5838 Glendora, Ltd. 5837 Glendora Avenue Dallas, TX 75230 Bankruptcy Case No.: 07-32523 Type of Business: The Debtor owns real estate. Chapter 11 Petition Date: June 1, 2007 Court: Northern District of Texas (Dallas) Judge: Harlin DeWayne Hale Debtor's Counsel: Frank R. Jelinek, III, Esq. 801 East Abram, Suite 102 Arlington, TX 76010 Tel: (817) 461-1100 Fax: (817) 461-1109 Total Assets: $1,900,000 Total Debts: $1,765,548 Debtor's Four Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Shaw General Contractors, Lot 5B, Block $150,160 Inc. V/5513 of 4107 Turtle Creek Replat of 5 Boulevard and 6, Block Dallas, TX 75219 B of Preston Meaders addition to the City of Dallas, Dallas County, Texas; value of senior lien: $1,424,101 David E. Pickett cash advances $150,000 5837 Glendora Avenue Dallas, TX 75230 David Childs ad valorem taxes $27,277 Dallas County Tax on real property Assessor/Collector 500 Elm Street Dallas, TX 75202 Ramer Concrete, Inc. services and $12,931 materials ABRAXAS PETROLEUM: Inks Pact Contributing Assets to Abraxas Energy ------------------------------------------------------------------ Abraxas Petroleum Corporation, on May 25, 2007, entered into a contribution, conveyance and assumption agreement with: * Abraxas Energy Partners, L.P., * Abraxas General Partner, LLC, the company's wholly-owned subsidiary, * Abraxas Energy Investments, LLC, another wholly-owned subsidiary, and * Abraxas Operating, LLC, a wholly-owned subsidiary of Abraxas Energy. Among other things, the contribution agreement provided for the contribution by Abraxas to the Abraxas Operating of certain assets located in South and West Texas in exchange for all of the equity interests of the Abraxas Operating. The assets contributed to Abraxas Energy had estimated proved reserves of approximately 65 Bcfe as of Dec. 31, 2006 and accounted for approximately 85% of Abraxas' daily production on the date of the contribution. In consideration for these assets, Abraxas Energy and the Abraxas Operating jointly and severally, assumed all of Abraxas' existing indebtedness under its Floating Rate Senior Secured Notes due 2009, and the obligation to pay certain preformation and transaction expenses and issued General Partner Units and Common Units to Abraxas General and Abraxas Investments in exchange for their ownership interests in the Abraxas Operating. After consummation of the transactions, the General Partner Units and the Common Units owned by Abraxas General and Abraxas Investments constituted a 47.2% ownership interest in Abraxas Operating. These transfers and distributions were made in a series of steps outlined in the contribution agreement. About Abraxas Petroleum Corporation Headquartered in San Antonio, Texas, Abraxas Petroleum Corporation -- http://www.abraxaspetroleum.com/-- (AMEX:ABP) is an independent natural gas and crude oil exploitation and production company with operations concentrated in Texas and Wyoming. The company's balance sheet as of March 31, 2007, showed total assets of $117.7 million, total liabilities of $139.8 million, resulting in a total stockholders' deficit of $22.1 million ACRO BUSINESS: Judge Kressel Confirms Ch. 11 Plan of Liquidation ---------------------------------------------------------------- The Honorable Robert J. Kressel of the U.S. Bankruptcy Court for the District of Minnesota confirmed Acro Business Finance Corp.'s Amended Chapter 11 Plan of Liquidation. Overview of the Plan As reported in the Troubled Company Reporter May 10, 2007, the Debtor disclosed that upon confirmation of the Plan, a post-confirmation liquidating trust, to be administered by the liquidating agent, will be established for the benefit of all of the Debtor's creditors. All of Debtor's assets will be transferred to the liquidating trust subject to the lien of M&I Marshall and Ilsley Bank. The liquidating agent will be charged with liquidating the assets to cash by no later than June 30, 2007. All cash will be distributed pursuant to the Plan. Treatment of Claims Under the Plan, Administrative Expense and Priority Tax Claims will be paid in full, in cash. Holders of Postpetition Claims, incurred in the ordinary course of the Debtor's business, will be paid as the claims become due, as agreed between the holders and the Debtor. M&I Marshall and Ilsley Bank, which holds a $11,105,010 claim secured by a lien on virtually all of the Debtor's personal property and real property, including the Debtor's interest in loans made to its borrowers. On the effective date of the Plan, M&I Marshall and Ilsley Bank will receive cash remaining on hand after: * payment of administrative and priority claims; * reserves for funding of advances or loans in amounts acceptable to the Liquidating Agent and M&I; and * working capital retained by the Liquidating Agent to fund post-confirmation expenses. After the effective date, M&I Marshall and Ilsley Bank will receive periodic cash payments from collection of amounts due the postpetition estate from the Debtor's borrowers. All assets of the Debtor and the bankruptcy estate transferred to the postpetition estate will remain subject to the first priority valid and perfected lien of M&I Marshall and Ilsley Bank. Participants under respective participation agreements hold a $3,125,000 claim against the Debtor as of March 30, 2007. On and after the effective date, amounts collected from the Debtor's borrowers and representing the share of a participant will be deposited into the participation account. Participants will receive periodic distribution under the terms of the applicable participation agreement. To the extent that participation agreements constitute executory contracts under Section 365 of the Bankruptcy Code, the contracts will be assumed. General Unsecured Creditors will receive a pro rata share of funds in the post-confirmation estate after payment of other claims. The Debtor says that it owes Senior Subordinated Debt holders $2,732,700 plus accrued and unpaid interest. On and after the effective date, the Liquidating Agent will pay amounts, if any, to the holders of claims in this class only if and until the secured and unsecured claims of M&I Marshall and Ilsley Bank are paid in full. Equity Interests in the Debtor will be cancelled and holders will not receive any distribution under the Plan. A full-text copy of Disclosure Statement is available for free at: http://www.researcharchives.com/bin/download?id=070509031337 Based in Minneapolis, Minnesota, Acro Business Finance Corp. provides financial services. The company filed for chapter 11 protection on July 12, 2006 (Bankr. D. Minn. Case No. 06-41364). Clinton E. Cutler, Esq., and Cynthia A. Moyer, Esq., at Fredrikson & Byron, PA, represent the Debtor. No Official Committee of Unsecured Creditors has been appointed in this case. When the Debtor filed for protection from its creditors, it estimated assets and debts between $10 million and $50 million. ACTUANT CORP: Launches Private Offering of $250MM of Senior Notes ----------------------------------------------------------------- Actuant Corporation will offer up to $250 million in aggregate principal amount of senior notes due in 2017 in a private placement, subject to market and other conditions. The company expects the offering will be completed in June 2007. The issuance of the notes will be subject to customary closing conditions. The company will use the net proceeds from the offering to refinance a portion of its senior credit facility and to pay certain transaction costs and expenses. Based in Butler, Wis., Acuant Corp. (NYSE: ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. The company employs a workforce of more than 6,700 worldwide. * * * As reported in the Troubled Company Reporter on Oct. 23, 2006, Moody's Investors Service affirmed its Ba2 corporate family rating for Actuant Corp. ADVANSTAR COMM: Veronis Suhler Buys Advanstar Holdings for $1.1BB ----------------------------------------------------------------- Advanstar Communications Inc.'s holding company, Advanstar Holdings Corp. was acquired by an investor group led by Veronis Suhler Stevenson for $1.142 billion in cash. VSS is joined in this investment by several co-investors. "The company was pleased to have completed this transaction," Joe Loggia, Advanstar's CEO, commented. "Advanstar's acquisition by VSS reflects the success of the company's strategy and the quality of its industry leading products. The company thanks Credit Suisse and Avista Capital for their past support as it developed Advanstar into a leader in the business media industry. The resources and expertise provided by VSS and their investment co- sponsors will be valuable assets as the company continues to execute its strategy and capitalize on future growth opportunities." "Advanstar is one of the premier business media companies in the world with a diversified portfolio of tradeshows, publications, directories and websites," Scott Troeller, partner at VSS, said. "VSS, along with its investment partners, look forward to working closely with the Advanstar management team led by Joe Loggia to build upon the scaleable and attractive platform they've developed over the last several years." Credit Suisse advised Advanstar and Davis Polk & Wardwell acted as legal counsel to Advanstar in connection with this transaction. On March 29, 2007, Advanstar Holdings Corp. has entered into a definitive agreement to be acquired by an investor group led by Veronis Suhler Stevenson. Under the terms of the agreement, VSS will acquire all of the outstanding stock of Advanstar Holdings Corp. for approximately $1.142 billion in cash. VSS is joined in this investment with co-sponsors in the transaction, including Citigroup Private Equity and New York Life Capital Partners. About Veronis Suhler Stevenson Veronis Suhler Stevenson - http://www.vss.com/-- is a private equity firm that invests buyout and structured capital funds in the media, communications, information and education industries in North America and Europe. VSS provides capital for buyouts, recapitalizations, growth financings and strategic acquisitions to companies and management teams with a goal to build companies both organically and through a focused add-on acquisition program. To date, VSS equity and structured capital funds have invested in over 50 platform companies, which have in turn completed over 220 add-on acquisitions resulting in a portfolio with realized and unrealized enterprise values totaling approximately $11 billion. About Advanstar Based in New York City, Advanstar -- http://www.advanstar.com/-- provides integrated marketing solutions for the Fashion and Licensing, Life Sciences and Powerports industries. Communications serves business professionals and consumers in these industries with its portfolio of 91 shows and stand-alone conferences, 66 publications and directories, 150 electronic publications and Web sites, well as educational and direct marketing products and services. Communications has roughly 1,000 employees and currently operates from multiple offices in North America and Europe. All of the common stock of Communications is owned by its parent company, Advanstar Holdings. * * * Advanstar Communications Inc.'s 12% Senior Subordinated Notes due 2011 carry Moody's Investors Service's 'Caa1' rating and Standard & Poor's 'CCC' rating. ALMA ENERGY: Voluntary Chapter 11 Case Summary ---------------------------------------------- Lead Debtor: Alma Energy, L.L.C. 59 Davis Branch Stone, KY 41657 Bankruptcy Case No.: 07-70258 Debtor affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Nathan's Welding, L.L.C. 07-70259 Chapter 11 Petition Date: May 1, 2007 Court: Eastern District of Kentucky (Pikeville) Debtors' Counsel: James P. Pruitt, Jr., Esq. Pruitt & De Bourbon Law Firm P.O. Box 339 Pikeville, KY 41502 Tel: (606) 437-7366 Estimated Assets Estimated Debts ---------------- --------------- Alma Energy, L.L.C. $1 Million to $1 Million to $100 Million $100 Million Nathan's Welding, L.L.C. $100,000 to $100,000 to $1 Million $1 Million The Debtors do not have any creditors who are not insiders. AMERICAN COMMERCE: Pender Newkirk Raises Going Concern Doubt ------------------------------------------------------------ Pender Newkirk & Company LLP, of Tampa, Fla., expressed substantial doubt about American Commerce Solutions, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Feb. 28, 2007, and 2006. The auditing firm noted that the company incurred a net loss for the year ended Feb. 28, 2007 and has an accumulated deficit and negative working capital at Feb. 28, 2007. Pender Newkirk further stated that the company is in default on several notes payable at Feb. 28, 2007. The company posted a $1,450,388 net loss on $2,351,288 revenue for the year ended Feb. 28, 2007, as compared with a $922,351 net loss on $2,301,574 revenue in the prior year. For the year ended Feb. 28, 2007, the company's selling, general and administrative expenses grew to $2,151,316 from $2,115,724 in the prior year. At Feb. 28, 2007, the company's balance sheet showed $5,433,253 in total assets and $1,590,747 in total liabilities, resulting to $1,944,778 in stockholders' equity. The company also reported strained liquidity in its balance sheet with $457,810 in total current assets and $1,897,728 in total current liabilities. Liquidity and Capital Resources During the fiscal years ended Feb. 28, 2007, and 2006, the company used net cash for operating activities of $576,838 and $254,904, respectively. This increase in cash used by operating activities is primarily due to the overall increase in the net loss from the prior year. During the years ended Feb. 28, 2007, and 2006, the company provided funds of $215,110 and used $102,861 for investing activities, respectively. This increase in cash provided from investing activities is mainly due to the payments received on the notes receivable. During the years ended Feb. 28, 2007, and 2006, the company provided cash from financing activities of $360,226 and $312,391, respectively. The increase in net cash provided by financing activities is due to an increase in the cash received from the issuance of notes payable. A full-text copy of the company's fiscal 2006 annual report is available for free at http://researcharchives.com/t/s?2066 About American Commerce Headquartered in Bartow, Fla., American Commerce Solutions, Inc. - - (OTCBB: AACS) -- http://www.aacssymbol.com/-- is primarily a holding company with two wholly owned subsidiaries; International Machine and Welding Inc. is engaged in the machining and fabrication of parts used in industry, and parts sales and service for heavy construction equipment; Chariot Manufacturing Company, Inc., which was acquired on Oct. 11, 2003, from a related party, manufactures motorcycle trailers with fiberglass bodies. AMERITRADE HOLDING: Fitch Affirms BB+ Ratings on $1.9 Billion Loan ------------------------------------------------------------------ Fitch Ratings affirms TD AMERITRADE Holding Corporation's ratings as: -- Issuer Default Rating at 'BB+'; -- $250 million term loan A senior secured notes maturing Dec. 31, 2011 at 'BB+'; -- $1.650 billion term loan B senior secured notes maturing Dec. 31, 2012 at 'BB+'. The Rating Outlook has been revised to Stable from Positive. The rating affirmation follows TD AMERITRADE's announcement to acquire a portion of Fiserv's Investment Support Services business. To date, the integration between TD Waterhouse and Ameritrade has gone smoothly with debt service ahead of schedule. Long-term ratings recognize TD AMERITRADE's position as a leading online discount brokerage firm that is also focused on generating more asset-based revenues. Cash flow has been strong and leverage ratios have also improved. The Ratings Outlook has been revised to Stable from Positive recognizing the increase in goodwill, reversal of positive trends in tangible equity and an expectation that smaller acquisitions may continue further pressuring a return to positive equity. Fitch believes that the Fiserv deal presents additional scale in fee-based businesses. The purchase comprises $28 billion in client assets, broken down between assets held by Registered Investment Advisers of $17 billion and assets held in third-party administered retirement plans of $10 billion. The transaction results in 500 new independent RIA relationships and is expected to be immediately accretive. The purchase price is $225 million with the potential for an additional $100 million outlay if revenue targets are met, increasing goodwill. Current debt outstanding was approximately $1.7 billion at March 31, 2007, and equity was $1.8 billion. Fitch continues to monitor the success of the company's ability to meet synergies and debt reduction targets. ANNETTE PASSE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Annette Passe 3 White Deer Lane West Harrison, NY 10604 Bankruptcy Case No.: 07-22504 Chapter 11 Petition Date: May 29, 2007 Court: Southern District of New York (White Plains) Judge: Adlai S. Hardin Jr. Debtor's Counsel: Anne J. Penachio, Esq. 575 White Plains Road Eastchester, NY 10709 Tel: (914) 961-6003 Fax: (914) 961-5658 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. ASSET BACKED: Fitch Affirms Low-B Ratings on 2 Certificate Classes ------------------------------------------------------------------ Fitch has taken rating actions on these Asset Backed Securities Corporation mortgage pass-through certificates: Series 1999-LB1, Group 1 -- Class A affirmed at 'AAA'; -- Class B1F remains at 'CCC' and the Distress Recovery rating is lowered to 'DR2' from 'DR1'. Series 1999-LB1, Group 2 -- Class A affirmed at 'AAA'; -- Class B1A affirmed at 'CCC/DR2'. Series 2002-HE3, Group 1 -- Class 1-M2 upgraded to 'A+' from 'A'; -- Class 1-M3 affirmed at 'BB'; -- Class 1-M4 downgraded to 'B-' from 'B' and assigned a DR rating of 'DR1'. Series 2002-HE3, Group 2 -- Class 2-M1 affirmed at 'AAA'; -- Class 2-M2 upgraded to 'A+' from 'A'; -- Class 2-M3 affirmed at 'BB'; -- Class 2-M4 downgraded to 'B-' from 'B' and assigned a DR rating of 'DR1'. The collateral in the aforementioned transactions consists primarily of closed-end, fixed- and adjustable-rate mortgages secured by first and second liens on residential properties. The originator of the majority of the loans is Long Beach Mortgage Company, and the servicer is Washington Mutual Bank (rated 'RPS2+' by Fitch). The affirmations are due to a stable relationship between credit enhancement and expected losses, as well as the financial strength and rating of MBIA as a certificate insurer (class A certificates for series 1999-LB1), and affect approximately $56.2 million in outstanding certificates. The upgrades are due to an improvement in the relationship between CE and expected losses and affect approximately $26.59 million in outstanding certificates. The negative rating actions are due to deterioration in the relationship between CE and expected losses and affect approximately $10.43 million in outstanding certificates. The 12-month loss average (after being covered by excess spread) for groups 1 and 2 of series 2002-HE3 are approximately $186,798 and $93,545, respectively. Based on the 12-month loss average for group 2, the OC amount of $769,054 (approximately 3.62% of its current balance) will be written down to zero in approximately 8 months. Fitch does not expect the OC amounts for either group to reach their targets again. Classes B-1 (1999-LB1), and M-2, M-3 and M-4 (2002-HE3) represent interest in two loan groups, and solely for purposes of determining distributions of principal and interest and the allocation of losses realized on mortgage loans, each class consists of two components. The CE for a component class may differ between the loan groups. However, a default of a component class would result in a default of the entire class and therefore Fitch's ratings reflect the credit risk to the weaker of the two components. ASSET BACKED: Fitch Affirms Low-B Ratings on Three Certificates --------------------------------------------------------------- Fitch has taken rating action on these Securitized Asset Backed Receivables mortgage pass-through certificates: Series 2006-HE1 -- Class A affirmed at 'AAA'; -- Class M1 affirmed at 'AA'; -- Class M2 affirmed at 'A+'; -- Class M3 affirmed at 'A'; -- Class B1 affirmed at 'A-'; -- Class B2 affirmed at 'BBB+'; -- Class B3 affirmed at 'BBB'; -- Class B4 affirmed at 'BBB-'; -- Class B5 rated 'BB+', is placed on Rating Watch Negative. Series 2006-CB1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class B-1 affirmed at 'A-'; -- Class B-2 affirmed at 'BBB+'; -- Class B-3 affirmed at 'BBB'; -- Class B-4 affirmed at 'BBB-'; -- Class B-5 affirmed at 'BB'. Series 2006-FR1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'A+'; -- Class M-3 affirmed at 'A'; -- Class B-2 affirmed at 'BBB+'; -- Class B-1 affirmed at 'A-'; -- Class B-3 affirmed at 'BBB'. Series 2006-FR2 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-3 affirmed at 'A'; -- Class M-2 affirmed at 'A+'; -- Class B-1 affirmed at 'A-'; -- Class B-2 affirmed at 'BBB+'; -- Class B-3 affirmed at 'BBB'; -- Class B-4 affirmed at 'BBB-'; -- Class B-5 rated 'BB+', is placed on Rating Watch Negative. Series 2006-FR3 -- Class M-1 affirmed at 'AA+'; -- Class A affirmed at 'AAA'; -- Class M-2 affirmed at 'A+'; -- Class M-3 affirmed at 'A'; -- Class B-1 affirmed at 'A-'; -- Class B-2 affirmed at 'BBB+'; -- Class B-3 affirmed at 'BBB'; -- Class B-4 affirmed at 'BBB-'; -- Class B-5 rated 'BB+', is placed on Rating Watch Negative. Series 2006-NC2 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-3 affirmed at 'A-'; -- Class M-2 affirmed at 'A'; -- Class B-1 affirmed at 'BBB+'; -- Class B-3 affirmed at 'BBB-'; -- Class B-2 affirmed at 'BBB'; -- Class B-4 affirmed at 'BB+'; -- Class B-5 affirmed at 'BB'. Series 2006-OP1 -- Class M1 affirmed at 'AA+'; -- Class A affirmed at 'AAA'; -- Class M2 affirmed at 'AA+'; -- Class M3 affirmed at 'AA'; -- Class M4 affirmed at 'AA-'; -- Class M5 affirmed at 'A+'; -- Class M6 affirmed at 'A'; -- Class B1 affirmed at 'A-'; -- Class B2 affirmed at 'BBB+'; -- Class B3 affirmed at 'BBB'. Series 2006-WM1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A'; -- Class B-1 affirmed at 'BBB+'; -- Class B-2 affirmed at 'BBB'; -- Class B-3 affirmed at 'BBB-'; -- Class B-4 rated 'BB+', is placed on Rating Watch Negative. The collateral in the aforementioned transactions primarily consists of closed-end, adjustable- and fixed-rate subprime loans secured by first- and second-lien mortgages on residential real properties. The originators of the majority of the collateral include Fremont Investment & Loan, New Century Capital Corp., Option One Mortgage Corp., and WMC Mortgage Corp. The servicers of the loans include Wells Fargo Bank, N.A., Litton Loan Servicing LP, Option One Mortgage Corp., and HomeEq Servicing Corp., all rated 'RPS1' by Fitch. The affirmations reflect a satisfactory relationship between credit enhancement and expected losses, and affect approximately $3.28 billion in outstanding certificates. The negative rating actions reflect deterioration in the relationship between CE and expected losses, and affect approximately $17.36 million in outstanding certificates. Series 2006-FR2, class B-5 (approximately $5.45 million in aggregate) is placed on Rating Watch Negative due to trends in the relationship between serious delinquency and CE. After eight months of seasoning, the 60+ delinquency (including loans in bankruptcy, FC, and REO) is 18.58% of the collateral balance. 10.7% of the collateral balance is in FC and REO. The annualized excess spread, including cash flow pledged to the trust from interest rate derivatives, available to absorb losses is 1.95%. The CE for class B-5 is approximately 3.1%. Series 2006-FR3, class B-5 (approximately $8.89 million in aggregate) is placed on Rating Watch Negative due to trends in the relationship between serious delinquency and CE. After seven months of seasoning, the 60+ delinquency (including loans in bankruptcy, FC, and REO) is 17.31% of the collateral balance. 10.2% of the collateral balance is in FC and REO. The annualized excess spread, including cash flow pledged to the trust from interest rate derivatives, available to absorb losses is 2.27%. The CE for class B-5 is approximately 2.87%. Series 2006-HE1, class B-5 (approximately $7.69 million in aggregate) is placed on Rating Watch Negative due to trends in the relationship between serious delinquency and CE. After seven months of seasoning, the 60+ delinquency (including loans in bankruptcy, FC, and REO) is 15.1% of the collateral balance. 9% of the collateral balance is in FC and REO. The annualized excess spread, including cash flow pledged to the trust from interest rate derivatives, available to absorb losses is 2.53%. The CE for class B5 is approximately 2.12%. Series 2006-WM1, class B-4 (approximately $7.22 million in aggregate) is placed on Rating Watch Negative due to trends in the relationship between serious delinquency and CE. After 13 months of seasoning, the 60+ delinquency (including loans in bankruptcy, FC, and REO) is 15.35% of the collateral balance. 9.5% of the collateral balance is in FC and REO. The annualized excess spread, including cash flow pledged to the trust from interest rate derivatives, available to absorb losses is 1.5%. The CE for class B-4 is approximately 3.41%. ASTRATA GROUP: Squar Milner Raises Going Concern Doubt ------------------------------------------------------ Squar, Milner, Peterson, Miranda & Williamson LLP, of Newport Beach, Calif., expressed substantial doubt about Astrata Group, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Feb. 28, 2007. The auditing firm noted that the company had negative working capital at Feb. 28, 2007, and incurred net loss and negative operating cash flow for the year ended Feb. 28, 2007. Astrata Group, Inc., posted a $14,679,287 net loss on $3,472,020 revenue for the year ended Feb. 28, 2007, as compared with a $14,948,163 net loss on $3,058,833 revenue in the prior year. For the year ended Feb. 28, 2007, net cash used in operating activities decreased to $2,002,754 from $3,597,222 in the prior year, net cash used in investing activities decreased to $232,113 from $574,977 in the prior year, and net cash provided by financing activities also decreased to $1,840,954 from $3,538,141 in the prior year. At Feb. 28, 2007, the company's balance sheet showed $3,069,656 total assets, $11,624,157 total liabilities, and $40,114 minority interest, resulting to $8,594,615 stockholders' deficit. The company also reported $2,045,283 total current assets and $11,554,490 total current liabilities, resulting to $9,509,207. A full-text copy of the company's fiscal 2006 annual report is available for free at http://researcharchives.com/t/s?207a/ About Astrata Group Headquartered in Costa Mesa, Calif., Astrata Group Inc. -- (OTC BB: ATTG.OB) -- http://www.astratagroup.com/-- is engaged in the telematics and Global Positioning System industry, focused on advanced location-based IT products and services that combine positioning, wireless communications, and information technologies. The company provides advanced positioning products, as well as monitoring and airtime services to industrial, commercial, governmental entities, academic/research institutions, and professional customers in a number of markets including surveying, utility, construction, homeland security, military, intelligence, mining, agriculture, marine, public safety, and transportation. ATLAS PIPELINE: To Buy Anadarko Petroleum's Chaney & Midkiff Stake ------------------------------------------------------------------ Atlas Pipeline Partners L.P. disclosed that the Partnership has signed definitive agreements to acquire control of Anadarko Petroleum Corporation's interests in the Chaney Dell and Midkiff/Benedum natural gas gathering and processing systems for $1.85 billion. The transaction has been unanimously approved by the board of directors of the Partnership and is expected to close on or about July 11, 2007, subject to certain approvals. The acquisition is immediately accretive. Available distributable cash flow to the Partnership is projected to be approximately $2.14 to $2.22 per unit for the second half of 2007, representing a 6-10% increase compared with prior guidance, and $4.56 to $4.80 per unit in 2008. APL expects to distribute between $1.78 and $1.85 per limited partner unit in the second half of 2007, and expects to distribute between $3.80 to $4 per limited partner unit in 2008, after an increase in its distribution coverage ratio to 1.2x. At the mid-point of this range, this payout would represent over a 13% increase over the Partnership's current distribution rate of $0.86 per quarter, or $3.44 on an annualized basis. "This purchase is transformative for APL," Edward E. Cohen, chairman and chief executive officer of the Partnership, said. "APL's aggregate processing capacity will more than double -- from 350 million cubic feet per day to over 750 Mmcf/d, and current total cash flow should nearly triple following this transaction. In addition, these new assets offer considerable opportunity for further rapid and substantial organic growth." The Chaney Dell natural gas gathering and processing system, currently 100% owned by Anadarko, is located in northwest Oklahoma and southern Kansas, near the center of the Anadarko Basin. Throughput on the Chaney Dell system averaged 226 Mmcf/d in 2006, and is centered within an active drilling area. This system consists of two active processing facilities: -- the Waynoka Plant, a 200 Mmcf/d cryogenic unit in Woods County, OK; -- the Chester Plant, a 30 Mmcf/d cryogenic expander unit in Woodward County, OK; and -- approximately 3,470 miles of gathering pipeline covering six counties in the Anadarko Basin across northwestern Oklahoma and southern Kansas. The Midkiff/Benedum natural gas gathering and processing system, which is approximately 73% owned by Anadarko, is located in the Spraberry Trend of the Permian Basin, near Midland, Texas. In 2006, the Midkiff/Benedum system had approximately 139 Mmcf/d of average throughput. This system consists of the following: -- the Midkiff Plant, a 130 Mmcf/d cryogenic facility in Reagan County, TX; -- the Benedum Plant, a 43 Mmcf/d cryogenic facility in Upton County, TX; and -- approximately 2,500 miles of gathering pipeline located across four counties in the Permian Basin of west Texas The Midkiff/Benedum system is subject to a third-party's preferential right, the exercise of which, if any, would occur prior to the expected closing. In order to offer greater flexibility to its customers and expand its operating footprint related to its Oklahoma assets, APL expects to take advantage of the location of its existing Elk City-Sweetwater gathering and processing system in southwest Oklahoma by connecting these facilities to the Chaney Dell system. Additionally, APL plans to construct a new processing facility between the Elk City-Sweetwater system and the Chaney Dell system. All of these planned strategies should materially benefit cash flow past 2008. "The company anticipates the opportunity to create operating flexibility by assimilating these processing and gathering assets into its existing systems," Robert R. Firth, President of Atlas Pipeline Holdings, general partner of APL, added. "Also, these assets are strategically placed in the Anadarko and Permian Basins which have seen significant drilling activity, and this will allow the company to expand these systems to meet the growing production demands in these areas. Lastly, the company expects to benefit from substantial capital improvements that the previous owner invested in these assets in late 2006." The highlights of this transaction include: -- $1.85 billion for control of Anadarko's interests in the Chaney Dell system, which is 100% owned by Anadarko and the Midkiff/Benedum system, approximately 73% owned by Anadarko, subject to certain adjustments and subject to certain legal rights of the minority shareholder in the Midkiff/Benedum system; -- APL expects to receive the equivalent of a stepped up tax basis in the acquired assets; -- Acquisition financing fully committed through: * a private placement to institutional investors of $1.125 billion, consisting of approximately 25.6 million limited partner units of APL at $44.00 per unit * up to a $900 million term loan, which matures in 2014 * a $250 million revolving credit facility, from which it expects to draw approximately $60 million for the closing -- APL intends to hedge its commodity exposure to natural gas and natural gas liquid prices on incremental production volumes from this transaction. The Partnership expects to hedge approximately 80% of its projected processing volumes from the date of the transaction through June 2010. -- Upon execution of this transaction, the company's general partner, Atlas Pipeline Holdings L.P., holder of all the incentive distribution rights in APL, will allocate a portion of its future incentive distribution rights to APL once specified distribution levels are met in the following manner: * 1 up to $5 million per quarter for the first 8 quarters immediately after the closing of the transaction; and * up to $3.75 million per quarter after the initial 8 quarter period The pro forma impact on Atlas Pipeline includes: -- APL anticipates that its cash distributions to common unitholders will be approximately $1.78 to $1.85 for the second half of 2007, and between $3.80 and $4 per common unit for full year 2008; -- Available distributable cash flow to the Partnership is expected to be approximately $2.14 to $2.22 per unit for the second half of 2007, and between $4.56 and $4.80 per unit in 2008; -- Beginning in the third quarter of 2007, Atlas Pipeline intends to increase its targeted coverage ratio to approximately 1.2x; and -- Atlas Pipeline expects its total natural gas processing capacity to increase from approximately 350 Mmcf/d to approximately 750 Mmcf/d. Affiliates of the Partnership and Anadarko will effect the transaction through the creation of two separate joint ventures which will own the respective systems. Wachovia Securities acted as sole financial advisor and provided commitments for the Partnership's new revolving credit facility and term loan financing arrangements. UBS Investment Bank acted as sole private placement agent. APL also disclosed that as of June 1, 2007, the Partnership activated a newly acquired gathering and compression system that will service the Sweetwater facility. This new system will add approximately 10-15 Mmcf/d of inlet gas to the Sweetwater plant, taking the facility to near full processing capacity. About Anadarko Petroleum Corp. Headquartered in The Woodlands, Texas, Anadarko Petroleum Corporation(NYSE: APC) - http://www.anadarko.com/-- an independent petroleum exploration and production company. About Atlas Pipeline Partners Atlas Pipeline Partners, L.P. (NYSE: APL) -- http://www.atlaspipelinepartners.com/-- is active in the transmission, gathering and processing segments of the midstream natural gas industry. In the Mid-Continent region of Oklahoma, Arkansas, northern Texas and the Texas panhandle, the Partnership owns and operates approximately 1,900 miles of active intrastate gas gathering pipeline and a 565-mile interstate natural gas pipeline. The Partnership also operates three gas processing plants and a treating facility in Velma, Elk City, Sweetwater and Prentiss, Oklahoma where natural gas liquids and impurities are removed. In Appalachia, it owns and operates approximately 1,600 miles of natural gas gathering pipelines in western Pennsylvania, western New York and eastern Ohio. Atlas Pipeline Holdings, L.P. (NYSE: AHD) is the parent company of Atlas Pipeline Partners, L.P.'s general partner and owner of 1,641,026 limited partner units of Atlas Pipeline Partners, L.P. Atlas America, Inc. (NASDAQ: ATLS) owns an 80% common unit interest and all of the Class A and management incentive interests in Atlas Energy Resources, LLC. Atlas America also owns an 83% interest in Atlas Pipeline Holdings L.P. * * * As reported in the Troubled Company Reporter on May 23, 2007, Standard & Poor's Ratings Services placed its 'BB-' corporate credit rating on Atlas Pipeline Partners L.P. on CreditWatch with negative implications. BANC OF AMERICA: Fitch Puts Low B Ratings on 2007-D $1.3MM Certs. ---------------------------------------------------------------- Fitch rates Banc of America Funding Corp. mortgage pass-through certificates, series 2007-D: -- $354,215,100 classes 2-A-1, 2-A-R, 3-A-1 through 3-A-5 (Senior Certificates) 'AAA'; -- $5,831,000 class X-B-1, 'AA'; -- $1,458,000 class X-B-2, 'A'; -- $1,093,000 class X-B-3, 'BBB'; -- $729,000 class X-B-4, 'BB'; and -- $546,000 class X-B-5, 'B'. This transaction contains certain classes designated as Exchangeable REMIC certificates and Exchangeable Certificates. Exchangeable REMIC Certificates: 3-A-2 and 3-A-3. Exchangeable Certificates: 3-A-5. All other classes are regular certificates. In the event Exchangeable REMIC Certificates are exchanged for Exchangeable Certificates, the principal balance of, amount of interest and principal distributable on and amount of principal and interest losses and interest shortfalls allocated to the Exchangeable Certificates will equal the aggregate principal balance of, and the aggregate amounts that would have been distributed on or allocated to, such Exchangeable REMIC Certificates if such exchange had not occurred. The 'AAA' rating on the Senior Certificates reflects the 2.80% subordination provided by the 1.60% class X-B-1, the 0.40% class X-B-2, the 0.30% class X-B-3, the 0.20% class X-B-4, the 0.15% privately offered class X-B-5, the 0.15% privately offered class X-B-6. Class X-B-6 is not rated by Fitch. Fitch believes the amount of credit enhancement will be sufficient to cover credit losses. The ratings also reflect the quality of the underlying collateral purchased by BAFC, the integrity of the legal and financial structures, the servicing capabilities of Wells Fargo Bank, N.A. (rated 'RPS1') and the Master Servicing capabilities of Wells Fargo Bank, N.A. (rated 'RMS1' by Fitch). The mortgage pool consists of 596 fully-amortizing, adjustable- rate, one- to four-family, first lien mortgage loans, substantially all of which have original terms to maturity of approximately 30 years. As of the cut-off date of May 1, 2007, the aggregate unpaid principal balance is $364,419,135 and the average principal balance is $611,442. The weighted average original loan-to-value ratio is approximately 68.61%. The weighted average coupon of the mortgage loans is 6.021% and the weighted average FICO score is 743. Cash-out and rate/term refinance loans represent 32.54% and 25.76% of the mortgage pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (55.49%), New York (5.62%), and New Jersey (5.05%). All other states represent less than 5% of the outstanding balance of the mortgage pool. BAFC, a special purpose corporation, deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. Elections will be made to treat the trust as multiple separate real estate mortgage investment conduits for federal income tax purposes. U.S. Bank National Association will serve as trustee. BANC OF AMERICA: Fitch Puts Low-B Ratings on 2 2007-2 Certificates ------------------------------------------------------------------ Banc of America Alternative Loan Trust 2007-2 mortgage pass- through certificates are rated by Fitch Ratings as: -- $371,912,243 classes 1-A-1 through 1-A-3, 1-A-R, 1-PO, 2-A-1 through 2-A-9, 3-A-1 through 3-A-3, and 3-IO 'AAA' (senior certificates); -- $12,431,000 class B-1 'AA'; -- $5,614,000 class B-2 'A'; -- $4,010,000 class B-3 'BBB'; -- $2,807,000 class B-4 'BB'; -- $2,205,000 class B-5 'B'. The 'AAA' ratings on the senior certificates reflect the 7.25% subordination provided by the 3.10% class B-1, 1.40% class B-2, 1.00% class B-3, 0.70% privately offered class B-4, 0.55% privately offered class B-5, and 0.50% privately offered class B-6. Classes B-1, B-2, B-3, and the privately offered classes B-4 and B-5 are rated 'AA', 'A', 'BBB', 'BB', and 'B', respectively, based on their respective subordination. Class B-6 is not rated by Fitch. The ratings also reflect the quality of the underlying collateral, the primary servicing capabilities of Bank of America Mortgage, National Association (rated 'RPS1' by Fitch), and Fitch's confidence in the integrity of the legal and financial structure of the transaction. The transaction is secured by three pools of mortgage loans. Loan groups 1, 2, and 3 are cross-collateralized and supported by the B-1 through B-6 subordinate certificates. There are 612 mortgage loans in all three groups that were underwritten using Bank of America's 'Alternative A' guidelines. These guidelines are less stringent than Bank of America's general underwriting guidelines and could include limited documentation or higher maximum loan-to-value ratios. Mortgage loans underwritten to 'Alternative A' guidelines could experience higher rates of default and losses than loans underwritten using Bank of America's general underwriting guidelines. Loan groups 1, 2 and 3, in the aggregate consist of 1,773 recently originated conventional, fixed-rate, fully amortizing, first lien, one- to four-family residential mortgage loans with remaining terms to stated maturity ranging from 240 months to 360 months. The aggregate outstanding balance of the pool as of May 1, 2006 (the cut-off date) is $400,985,065 with an average balance of $226,161 and a weighted average coupon of 6.718%. The weighted average original loan-to-value ratio for the mortgage loans in the pool is approximately 75%. The weighted average FICO credit score is 703. Second homes and investor-occupied properties comprise 5.34% and 43.06% of the loans in the group, respectively. Rate/Term and cash-out refinances account for 19.43% and 38.95% of the loans in the group, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (23.69%), Florida (14.79%), New York (5.50%), Illinois (5.38%), and Texas (5.18%). All other states represent less than 5% of the aggregate pool balance as of the cut-off date. Banc of America Mortgage Securities, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as multiple real estate mortgage investment conduits with a tiered structure. Wells Fargo Bank, National Association will act as trustee. BCE INC: Billionaire Richard Li Joins Cerberus in Takeover Bid -------------------------------------------------------------- Pacific Century Group, an investment group controlled by billionaire Richard Li, is joining a consortium of bidders for Canadian telecommunications company BCE Inc., according to various reports. Mr. Li has confirmed that his company is in discussions with Cerberus Capital Management LP for a minority stake in BCE. As reported in the Troubled Company Reporter on May 24, 2007, the Strategic Oversight Committee of the Board of Directors of BCE disclosed that another group is entering into discussions to explore the possibility of taking the Company private and that members of the group have signed non-disclosure and standstill agreements with BCE on a non-exclusive basis. The consortium includes Cerberus Capital Management, L.P. and a group of Canadian investors. Canadian investors are needed to satisfy foreign ownership restrictions in any privatization of BCE. The London Free Press cites that any foreign bidder would need one or more Canadian partners because of federal legislation that places an effective 46.7% limit on foreign ownership of a domestic telephone company. As previously reported Hospitals of Ontario Pension Plan has been recruited by Cerberus Capital in the equity firm's bid for BCE. According to Bloomberg other parties who have expressed interest is a group led by the Canada Pension Plan Investment Board and the Ontario Teachers' Pension Plan. Headquartered in Montreal, Canada, Bell Canada International Inc. (TSX, NYSE: BCE) (NEX:BI.H) -- http://www.bci.ca/-- provides a suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high- speed and wireless Internet access, IP-broadband services, information and communications technology services and direct-to- home satellite and VDSL television services. Other BCE businesses include Canada's premier media company, Bell Globemedia, and Telesat Canada, a pioneer and world leader in satellite operations and systems management. The company is operating under a Plan of Arrangement approved by the Ontario Superior Court of Justice, pursuant to which BCI intends to monetize its assets in an orderly fashion and resolve outstanding claims against it in an expeditious manner with the ultimate objective of distributing the net proceeds to its shareholders and dissolving the company. BCE INC: CTRC Rejects Increase of Local Phone Service Rates ----------------------------------------------------------- The Canadian Radio-television and Telecommunications Commission denied the proposals of BCE Inc. and Telus Corp. to raise rates for local phone service so they could waive connection fees for new and returning customers, Alexandre Deslongchamps of Bloomberg News writes. According to Richard French, vice-chairman for CRTC, said 2,600 people wrote to oppose the plan of the two companies, instigating the regulator's decree. Under the proposals, Mr. Deslongchamps reports, BCE's Bell Canada and Bell Aliant would have increased monthly rates by 80 Canadian cents, and Vancouver-based Telus would have raised its charges by between 58 Canadian cents and CDN$1. BCE's connection fee in Ontario and Quebec is CDN$55. A poll commissioned by consumer group Union des consommateurs showed most Canadians preferred one-time charges. BCE and Telus are trying to reduce losses to competitors like Rogers Communications Inc., offering cheaper Internet phone service, Mr. Deslongchamps relates. Headquartered in Montreal, Canada, Bell Canada International Inc. (TSX, NYSE: BCE) (NEX:BI.H) -- http://www.bci.ca/-- provides a suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high- speed and wireless Internet access, IP-broadband services, information and communications technology services and direct-to- home satellite and VDSL television services. Other BCE businesses include Canada's premier media company, Bell Globemedia, and Telesat Canada, a pioneer and world leader in satellite operations and systems management. The company is operating under a Plan of Arrangement approved by the Ontario Superior Court of Justice, pursuant to which BCI intends to monetize its assets in an orderly fashion and resolve outstanding claims against it in an expeditious manner with the ultimate objective of distributing the net proceeds to its shareholders and dissolving the company. BEAR STEARNS: Fitch Puts Low-B Ratings on $2.9 Mil. Certificates ---------------------------------------------------------------- Bear Stearns ARM Trust, mortgage pass-through certificates, series 2007-4 are rated by Fitch Ratings as: -- $720,856,150 classes II-1A-1, II-1A-2, II-2A-1, II-2A-2, R-II through R-IV, II-1X-1, and II-2X-1 certificates ('senior certificates') 'AAA'; -- $14,566,000 class II-B-1 certificates 'AA'; -- $4,481,000 class II-B-2 certificates 'A'; -- $2,616,000 class II-B-3 certificates 'BBB'; -- $1,493,000 privately offered class II-B-4 certificates 'BB'; and -- $1,494,000 privately offered class II-B-5 certificates 'B'. The 'AAA' ratings on the senior certificates reflect the 3.50% subordination provided by the 1.95% class II-B-1, the 0.60% class II-B-2, the 0.35% class II-B-3, the 0.20% class II-B-4, the 0.20% class II-B-5, and the 0.20% class II-B-6 (not rated by Fitch). Classes II-B-1, II-B-2, II-B-3, II-B-4, and II-B-5 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures and the master servicing capabilities of EMC Mortgage Corporation; rated 'RMS3+' by Fitch Ratings). The transaction is secured by conventional one- to four-family, adjustable rate mortgage loans secured by first liens on residential real estate properties. All of the loans in this pool are originated by Countrywide Home Loans, Inc. The mortgage pool consists of two loan groups, which are cross- collateralized. The Group II-1 mortgage loans have an aggregate principal balance of $199,265,165 as of the cut-off date (May 1, 2007), an average balance of $668,675 a weighted average remaining term to maturity of 360 months, a weighted average original loan-to-value ratio of 74.31% and a weighted average coupon of 6.073%. Cash-out refinances account for 17.62% of the loans. The weighted average FICO credit score of the loans is 749. Owner occupied properties comprise 94.39% of the loans. The states that represent the largest geographic concentration are California (48.26%) and Washington (8.98%). All other states represent less than 5% of the outstanding balance of the pool. The Group II-2 mortgage loans have an aggregate principal balance of $547,737,017 as of the cut-off date (May 1, 2007), an average balance of $355,188 a weighted average remaining term to maturity of 360 months, a weighted average original loan-to-value ratio of 72.99% and a weighted average coupon of 6.241%. Cash-out refinances account for 22.31% of the loans. The weighted average FICO credit score of the loans is 747. Owner occupied properties comprise 91.72% of the loans. The state that represents the largest geographic concentration is California (57.73%). All other states represent less than 5% of the outstanding balance of the pool. BEDFORD THROOP: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Bedford Throop Housing Development Fund Company, Inc. 1486 President Street Brooklyn, NY 11213 Bankruptcy Case No.: 07-11700 Type of Business: The Debtor is a charitable organization. Chapter 11 Petition Date: June 1, 2007 Court: Southern District of New York (Manhattan) Debtor's Counsel: Charles E. Simpson, Esq. Windels, Marx, Lane & Mittendorf, L.L.P. 156 West 56th Street New York, NY 10019 Tel: (212) 237-1000 Fax: (212) 237-1215 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. BLANCA GOMEZ: Case Summary & Eight Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Blanca Gomez dba Independent Building Maintenance Pedro Salazar dba Brother & Brother Janitorial Services 2653 Havenscourt Boulevard Oakland, CA 94605 Bankruptcy Case No.: 07-41603 Chapter 11 Petition Date: May 25, 2007 Court: Northern District of California (Oakland) Judge: Randall J. Newsome Debtor's Counsel: Mufthiha Sabaratnam, Esq. 1300 Clay Street, Suite 600 Oakland, CA 94612 Tel: (510) 464-8000 Total Assets: $3,173,760 Total Debts: $2,526,393 Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service 2003 taxes $26,030 Insolvency Group 2 1301 Clay Street, Stop 1400S Oakland, CA 94612-5210 2001 taxes $19,389 2004 taxes $2,307 Thomas Shaw judgment de4bt $7,749 25 West Rose Street Bay Point, CA 94565 Rhodes-Jacob Chiropractic medical bills for $4,835 Corp. Gloria Recarte 1034 El Camino Real Redwood City, CA 94063 True M.R.I. Medical medical bills for $1,632 Center Gloria Recarte Capital One Bank credit card $525 Spanish Interpreters $220 Corp. City of Modesto utilities $178 Western Dental Centers medical bill $100 CEDAR LAKE: Case Summary & 11 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Cedar Lake Golf Club, Inc. 5720 Sharon Church Roa Loganville, GA 30052 Bankruptcy Case No.: 07-30513 Type of Business: The Debtor offers affordable public golf on a well maintained 18 hole golf course. See http://www.cedarlakegolf.com/ The Debtor filed for Chapter 11 protection on September 3, 2004 (Bankr. M.D. Ga. Case No. 04-31517). Chapter 11 Petition Date: June 1, 2007 Court: Middle District of Georgia (Athens) Debtor's Counsel: J. Robert Thompson, Esq. P.O. Box 831912 Stone Mountain, GA 30083 Tel: (770) 925-7999 Fax: (770) 925-7943 Estimated Assets: $10,000 to $100,000 Estimated Debts: $1 Million to $100 Million Debtor's List of its 11 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Georgia Department of Revenue withholding, sales, $450,000 P.O. Box 161108 income taxes Atlanta, GA 30321 Internal Revenue Service withholding, FICA, FUTA $315,000 401 West Peachtree Street income taxes Stop 334-D Atlanta, GA 30308 Dr. Hugh Mazzawi unpaid rent $300,000 P.O. Box 365 Snellville, GA 30078 National Bank of Walton County loan $163,000 P.O. Box 728 Secured: Monroe, GA 30655 $40,000 Robert F. Johnson unpaid salary $71,000 Brand Bank loan $62,100 Jennings & Associates accounting services $9,000 Callaway Golf merchandise $7,500 Range Servant America, Inc. merchandise $4,955 Card Services National credit card charges $4,400 Bank of Walton Co. Bank One credit card charges $4,300 CENTENE CORP: Appoints 5 Senior Staff to Vice-President Positions ----------------------------------------------------------------- Centene Corporation appointed five senior staff to the office of vice-president. The company appointed Eric R. Slusser to the position of Executive Vice President and Chief Financial Officer. Mr. Slusser's appointment is effective July 9, 2007 and will report directly to Michael F. Neidorff, Centene's Chairman and Chief Executive Officer. In addition, these current staff members will form the core of senior executives reporting to Mr. Neidorff: -- Carol E. Goldman, Executive Vice President and Chief Administrative Officer; -- Jesse N. Hunter, Senior Vice President, Corporate Development; -- William N. Scheffel, Executive Vice President, Specialty Business Unit; -- Keith H. Williamson, Senior Vice President, Corporate Secretary and General Counsel; Mr. Neidorff stated, "We remain focused on building our organization to capture and prepare for growth opportunities. Eric's appointment further strengthens our senior management team as he is a seasoned executive with a high level of experience in senior-level finance functions and accounting skills. His appointment demonstrates the premium Centene places on such a critical area of financial responsibility, and he has the background necessary to meet the demands of this position. We anticipate future steps to strengthen our already outstanding management team as we continue to grow." Mr. Slusser was formerly the Executive Vice President of Finance, Chief Accounting Officer and Controller of Cardinal Health, Inc., the leading provider of products and services supporting the healthcare industry. Prior to that, he was the Senior Vice President and Corporate Controller at MCI, Inc., where he was responsible for managing all accounting and financial reporting activities, including implementation of compliance programs following MCI's Chapter 11 filing in July 2002. Mr. Slusser has earned a Master of Business Administration from the University of Missouri, a Bachelor of Business Administration from Washburn University. He is also a Certified Public Accountant. Mr. Slusser will count among his direct reports: J. Per Brodin, Senior Vice President and Chief Accounting Officer, Marie J. Glancy, Senior Vice President, Operational Services and Regulatory Affairs, Edmund E. Kroll, Senior Vice President, Finance and Investor Relations, and James E. Reh, Vice President, Facilities Management. About Centene Corporation Centene Corporation (NYSE: CNC) -- http://www.centene.com/-- is a multi-line healthcare enterprise that provides programs and related services to individuals receiving benefits under Medicaid, including the State Children's Health Insurance Program (SCHIP) and Supplemental Security Income (SSI). The company operates health plans in Arizona, Georgia, Indiana, New Jersey, Ohio, Texas and Wisconsin. In addition, the company contracts with other healthcare and commercial organizations to provide specialty services including behavioral health, health management, long-term care, managed vision, nurse triage, pharmacy benefits management and treatment compliance. * * * As reported in the Troubled Company Reporter on Mar. 13, 2007, Standard & Poor's Ratings Services assigned its 'BB' counterparty credit rating to Centene Corp. Standard & Poor's also said that the outlook on Centene is negative. At the same time, Standard & Poor's assigned its 'BB' senior debt rating to Centene's planned seven-year, $175 million senior notes offering due 2014, which is to be issued via private placement. CHASE MORTGAGE: Fitch Puts Low-B Ratings on Two Mortgage Classes ---------------------------------------------------------------- Chase Mortgage Finance Trust, series 2007-S4 is rated by Fitch as: -- $854.9 million classes A1 through A19, A-X, A-P, and A-R (senior certificates) 'AAA'; -- $21.8 million class M 'AA'; -- $5.3 million class B-1 'A'; -- $3.6 million class B-2 'BBB'; -- $1.8 million privately offered B-3 'BB'; -- $0.9 million privately offered B-4 'B'. The 'AAA' rating on the senior classes reflects the 3.95% subordination provided by the 2.45% class M, the 0.60% class B-1, the 0.40% class B-2, the 0.20% privately offered class B-3, the 0.10% privately offered class B-4, and the 0.20% privately offered and not rated class B-5 certificates. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the primary servicing capabilities of JPMorgan Chase Bank, N.A. (rated 'RPS1' by Fitch). This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Class A-1, A-10, A-11, and A-13 through A-19 are exchangeable certificates. Classes A-2 through A-9, A-12, A-X, A-P, A-R, M, and B-1 through B-5 are regular certificates. The holder of the exchangeable initial certificates in any exchangeable combination may exchange all or part of each class of such exchangeable initial certificates for a proportionate interest in the related exchangeable certificates. The holder of any class of exchangeable certificates may exchange all or part of such class for a proportionate interest in each such class of exchangeable initial certificates or for other exchangeable certificates in the related exchangeable combination. The classes of exchangeable initial certificates and exchangeable certificates that are outstanding on any date and the outstanding principal balances (or notional amounts, as applicable) of any such classes will depend upon the aggregate distributions of principal made to such classes, as well as any exchanges that may have occurred on or prior to such date. For the purposes of the exchanges and the calculation of the principal balance of any class of exchangeable initial certificates, to the extent that exchanges of exchangeable initial certificates for exchangeable certificates occur, the aggregate principal balance of the exchangeable initial certificates will be deemed to include the principal balance (or notional amount, as applicable) of such exchangeable certificates issued in the exchange, and the principal balance (or notional amount, as applicable) of such exchangeable certificates will be deemed to be zero. Exchangeable initial certificates in any exchangeable combination and the related exchangeable certificates may be exchanged only in the specified proportion that the original principal balances (or notional amounts, as applicable) of such certificates bear to one another. Any holders of exchangeable certificates will be the beneficial owners of an interest in the exchangeable initial certificates in the related exchangeable combination and will receive a proportionate share, in the aggregate, of the aggregate distributions on those certificates. With respect to any distribution date, the aggregate amount of principal and interest distributable to any classes of exchangeable certificates and the exchangeable initial certificates in the related exchangeable combination then outstanding on such distribution date will be equal to the aggregate amount of principal and interest otherwise distributable to all of the exchangeable initial certificates in the related exchangeable combination on such distribution date as if no exchangeable certificates were then outstanding. The trust consists of 1,354 first-lien residential mortgage loans with stated maturity of not more than 30 years with an aggregate principal balance of $890,016,924 as of the cut-off date (May 1, 2007). The mortgage pool has a weighted average original loan-to- value ratio of 72.82% with a weighted average mortgage rate of 6.425%. The weighted-average FICO score of the loans is 742. The average loan balance is $657,324 and the loans are primarily concentrated in California (27.7%), New York (19.5%) and Florida (11.0%). The Bank of New York Trust Company, N.A, will serve as trustee. Chase Mortgage Finance Corporation deposited the loans in the trust which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CHL MORTGAGE: Fitch Puts Low-B Ratings on $1.95MM Certificates -------------------------------------------------------------- Fitch rates CWMBS, Inc.'s CHL Mortgage Pass-Through Trust 2007-10 mortgage pass-through certificates as: -- $627,880,067 classes A-1 through A-23, X, PO, and A-R certificates (senior certificates) 'AAA'; -- $12,675,000 classes M certificates 'AA'; -- $3,900,000 class B-1 certificates 'A'; -- $2,275,000 class B-2 certificates 'BBB'; -- $1,300,000 privately offered class B-3 certificates 'BB'; -- $650,000 privately offered class B-4 certificates 'B'; The 'AAA' rating on the senior certificates reflects the 3.40% subordination provided by the 1.95% class M, the 0.60% class B-1, the 0.35% class B-2, the 0.20% privately offered class B-3, the 0.10% privately offered class B-4 and the 0.20% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing; rated 'RMS1-' by Fitch), a direct wholly owned subsidiary of Countrywide Home Loans, Inc. As of the cut-off date (May 1, 2007), the mortgage pool consists primarily of 30-year conventional, fully amortizing mortgage loans, secured by first liens on one- to four- family residential properties totaling $649,979,588. The average mortgage pool balance is $620,802, with an approximate weighted-average original loan-to-value ratio of 73.35%. The weighted average FICO credit score is approximately 744. Cash-out refinance loans represent 23.5% of the mortgage pool and second homes 6.2%. The states that represent the largest portion of mortgage loans are California (40.5%) and Florida (5.6%). All other states represent less than 5% of the pool as of the cut-off date. CWMBS purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CINCINNATI BELL: Enters Second Amendment to Credit Agreement ------------------------------------------------------------ Cincinnati Bell Inc. , on May 25, 2007, amended its Credit Agreement originally dated as of February 16th, 2005 among the company, as Borrower, certain of its subsidiaries as as Guarantors, the Lenders party, Bank of America, N.A., as Administrative Agent and L/C Issuer, PNC Bank, National Association, as Swingline Lender and L/C Issuer, as previously amended, pursuant to a Second Amendment to Credit Agreement dated as of May 25th, 2007 among the Company, the Guarantors signatories thereto, the Lenders party thereto, the Bank of America, N.A., Administrative Agent and L/C Issuer, and PNC Bank, National Association, as Swingline Lender and L/C Issuer. The Second Amendment increases the size of the basket for permitted indebtedness attributable to capital leases and synthetic leases, at any one time outstanding, from $25 million to $75 million. About Cincinnati Bell Headquartered in Cincinnati, Ohio, Cincinnati Bell Inc. (NYSE: CBB) -- http://www.cincinnatibell.com/ provides a wide range of telecommunications products and services to residential and business customers in Ohio, Kentucky and Indiana. The company's balance sheet at March 31, 2007, showed $1.95 billion in total assets and $2.72 billion in total liabilities, resulting in a $773.1 million total stockholders' deficit. CITIGROUP MORTGAGE: Fitch Puts Low B Ratings on Two Cert. Classes ----------------------------------------------------------------- Fitch Ratings has assigned these ratings to Citigroup Mortgage Loan Trust Inc.'s mortgage pass-through certificates, series 2007- AR7: -- $782.5 million classes A1A, A2A, A2B, A3A, 3IO, A4A, 4IO, A134B, A5A, A5B and R senior notes 'AAA'; -- $21.2 million class B1 'AA'; -- $15.7 million class B2 'A'; -- $12.3 million class B3 'BBB'; -- $9.3 million non-offered class B4 'BB'; -- $5.1 million non-offered class B5 'B'; -- $4.2 million non-offered class B6 'NR'. The 'AAA' ratings on the senior notes reflect the 8% subordination provided by the 2.50% class B1, 1.85% class B2, 1.45% class B3, 1.10% non-offered class B4, 0.60% non-offered class B5 and 0.50% non-offered class B6 (not rated by Fitch). Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures, and the master servicing capabilities of CitiMortgage, Inc. (rated 'RMS1' by Fitch). The certificates represent ownership interests in a trust fund that consists of five pools of mortgage loans. The senior certificates whose class designation contains 1, 2, 3, 4 and 5 correspond to pools 1, 2, 3, 4 and 5, respectively. In certain limited circumstances, principal and interest collected from loan group 1, 2, 3, 4, or 5 may be used to pay principal or interest, or both, to the senior certificates related to the other of those five loan groups. The transaction consists of approximately 2,016 conventional, one- to four-family adjustable-rate mortgage loans secured by first liens on residential real properties. The mortgage loans have a final aggregate principal balance of approximately $850,598,682 as of the cut-off date (May 1, 2007), an average balance of $422,127 a weighted average remaining term to maturity of 358 months, a weighted average original loan-to-value ratio of 75.29% and a weighted average coupon of 6.835%. The weighted average FICO credit score of the loans is 710. Owner occupied properties and second homes comprise 79.86% and 5.92% of the loans, respectively. The states that represent the largest geographic concentration are California (36.75%) and Florida (17.77%). All other states represent less than 5% of the outstanding balance of the pool. U.S. Bank National Association will serve as trustee. CITIMORTGAGE ALTERNATIVE: Fitch Puts Low-B Ratings on Two Certs. --------------------------------------------------------------- Fitch rates CMALT (CitiMortgage Alternative Loan Trust), REMIC pass-through certificates series 2007-A5 as: -- $903,141,842 classes IA-1 through IA-16, IA-IO, IIA-1, IIA-IO and A-PO certificates (senior certificates) 'AAA'; -- $23,791,000 class B-1 'AA'; -- $8,090,000 class B-2 'A'; -- $6,186,000 class B-3 'BBB'; -- $4,282,000 class B-4 'BB'; -- $3,331,000 class B-5 'B'. The $2,855,548 class B-6 is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 5.10% subordination provided by the 2.50% class B-1, the 0.85% class B- 2, the 0.65% class B-3, the 0.45% privately offered class B-4, the 0.35% privately offered class B-5, and the 0.30% privately offered class B-6. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and CitiMortgage, Inc.'s servicing capabilities (rated 'RPS1' by Fitch) as primary servicer. As of the cut-off date, May 1, 2007, the mortgage pool consists of 3,060 conventional, fully amortizing, 10-30 year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of approximately $951,677,391, located primarily in California (23.65%), New York (9.34%) and Florida (6.82%). The weighted average current loan to value ratio of the mortgage loans is 72.23%. Approximately 62.37% of the loans were originated under a reduced documentation program. Condo and co-op properties account for 10.80% of the total pool. Cash-out refinance loans and investor properties represent 42.58% and 9.14% of the pool, respectively. The average balance of the mortgage loans in the pool is approximately $281,640. The weighted average coupon of the loans is 6.552% and the weighted average remaining term is 351 months. The mortgage loans were originated or acquired by CMI and in turn sold to CMSI. A special purpose corporation, CMSI, deposited the loans into the trust, which then issued the certificates. U.S. Bank National Association will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits. CKE RESTAURANTS: Reports Same-Store Sales for Carl's & Hardee's --------------------------------------------------------------- CKE Restaurants, Inc. reported same-store sales for the four weeks and quarter ended May 21, 2007, for Carl's Jr.(R) and Hardee's (R). Period 4 First Quarter -------- ------------- Brand FY 2008 FY 2007 FY 2008 FY 2007 ----- ------- ------- ------- -------- Carl's Jr. -0.9% +6.8% 0.0 % +5.6% Hardee's +0.6% +7.9% +1.8 % +5.6% Blended -0.1% +7.3% +0.9 % +5.6% Commenting on the company's performance, Andrew F. Puzder, president and chief executive officer, said, "Period four blended same-store sales declined 0.1 percent. However, we are very encouraged by Hardee's performance, which posted increased same- store sales for the 19th consecutive period despite very good results in the prior year. We remain convinced that our innovative, premium products and ongoing remodel and dual-branding programs can deliver positive sales results in the near and long- term." "During period four, Carl's Jr. promoted the Buffalo Chicken SandwichO and Boneless Buffalo Wings. Both products are dipped in Frank's(R) RedHot(R) buffalo wing sauce and received media support during the period. The brand also recently announced the introductions of the distinctive Hawaiian Teriyaki Burger (TM) and Orangesicle Hand-Scooped Ice Cream Shakes & Malts (TM) but the new menu items were not available in restaurants until after the close of period four," said Mr. Puzder. "On a two-year cumulative basis, same-store sales at Carl's Jr. have increased almost six percent. Average unit volumes for period four were higher than any comparable period four ever." Carl's Jr. same-store sales were flat in the first quarter, compared to a 5.6% increase in the prior-year's quarter. Revenue for the first quarter from company-operated Carl's Jr. restaurants, exclusive of franchise-related revenue and royalties, was approximately $181.2 million. "Hardee's introduced the distinctive Breakfast Club Sandwich (TM) at the start of period four, made with ham, bacon, turkey, cheese and eggs on grilled sourdough bread. The brand also introduced the Patty Melt Thickburger (TM) during the last week of period four although media support did not begin until period five. Featuring a 1/3-pound Angus beef patty topped with grilled onions and melted American cheese between two slices of grilled rye bread, the Patty Melt Thickburger offers guests an authentic version of a classic American burger. In addition, the brand continued to feature the Big Twin (R) and Southwest Chicken Salad(TM)" Puzder continued. "On a two-year cumulative basis, same-store sales at Hardee's have increased approximately eight and a half percent. In addition, Hardee's period four average unit volume was higher than any comparable period four since 1994, which is as far back as we can check." "Hardee's same-store sales for the first quarter increased 1.8 percent on top of a 5.6 percent increase in the prior-year's quarter. We believe these gains reflect our continued efforts to broaden the appeal of the brand through the selective expansion of our menu as well as our ongoing customer service initiatives." Revenue for the first quarter from company-operated Hardee's restaurants, exclusive of franchise-related revenue and royalties, was approximately $199.2 million. For the first quarter, consolidated revenue from company-operated restaurants, exclusive of all franchise-related revenue and royalties, was approximately: Carl's Jr. $181.2 million Hardee's $199.2 million La Salsa Fresh Mexican Grill (R) $13.4 million -------------- Total $393.8 million Same-store sales results for period five of fiscal year 2007, ending June 18, 2007, will be reported on or about June 27, 2007. As of the end of its fiscal fourth quarter on Jan. 29, 2007, CKE Restaurants, Inc., through its subsidiaries, had a total of 3,105 franchised or company-owned restaurants in 43 states and in 13 countries, including 1,087 Carl's Jr. restaurants, 1,906 Hardee's restaurants and 96 La Salsa Fresh Mexican Grill restaurants. About CKE Restaurants Headquartered in Carpinteria, California, CKE Restaurants Inc. (NYSE: CKR) -- http://www.ckr.com/-- operates some of the most popular U.S. regional brands in quick-service and fast-casual dining, including the Carl's Jr.(R), Hardee's(R), La Salsa Fresh Mexican Grill(R) and Green Burrito(R) restaurant brands. As of the end of its fiscal fourth quarter on Jan. 29, 2007, the company, through its subsidiaries, had a total of 3,105 franchised or company-operated restaurants in 43 states and in 13 countries, including 1,087 Carl's Jr. restaurants, 1,906 Hardee's restaurants and 96 La Salsa Fresh Mexican Grill restaurants. * * * As reported in the Troubled Company Reporter on March 29, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit rating on CKE Restaurants. The outlook is stable. CLEVELAND-CLIFFS: Names William Boor as Business Development SVP ---------------------------------------------------------------- Cleveland-Cliffs Inc. has appointed William C. Boor as senior vice president, business development, effective May 21, 2007, with responsibilities for identifying and leading initiatives to support the growth of the Company. Boor, 41, joins Cliffs having served as executive vice president, strategy and development, at American Gypsum Company, a subsidiary of Eagle Materials Inc. Previously, he was responsible for strategy and investor relations as part of the senior management team that led the spin-off of Eagle Materials from Centex Corp. Boor also has held key leadership roles at Weyerhaeuser Co. and Procter & Gamble Co. and brings diverse experience in manufacturing management, process engineering, financial management, investor relations and marketing to his new role. "Bill's broadbased technical and management expertise will serve the company, well as accelerate its growth initiatives," Joseph A. Carrabba, Cleveland-Cliffs president and chief executive officer, commented. "The company feels he is an excellent addition to the company's management team and welcome him to the Cliffs family." Boor is a chartered financial analyst and holds a B.S. in Chemical Engineering from Pennsylvania State University and an MBA from Harvard Business School. About Cleveland-Cliffs Inc. Headquartered in Cleveland, Ohio, Cleveland-Cliffs Inc. (NYSE: CLF) -- http://www.cleveland-cliffs.com/-- produces iron ore pellets in North America, and sells the majority of its pellets to integrated steel companies in North America and Canada. The company operates six iron ore mines located in Michigan, Minnesota and Eastern Canada. The company is a majority owner of Portman Limited, an iron ore mining company in Australia, serving the Asian iron ore markets with direct-shipping fines and lump ore. * * * Cleveland-Cliffs, Inc.'s preferred stocks carry Moody's Investor Service's 'B3' rating. COASTAL EXPRESS: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Coastal Express, Inc. 71 School House Road Mills River, NC 28759 Bankruptcy Case No.: 07-10358 Chapter 11 Petition Date: June 1, 2007 Court: Western District of North Carolina (Asheville) Judge: George R. Hodges Debtor's Counsel: David G. Gray, Esq. Westall, Gray, Connolly & Davis, P.A. 81 Central Avenue Asheville, NC 28801 Tel: (828) 254-6315 Total Assets: $1,059,700 Total Debts: $809,895 The Debtor does not have any creditors who are not insiders. COLE BROTHERS: Case Summary & 16 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Cole Brothers, Inc. aka Winlen Oaks Living Center P.O. Box 698 Frederick, OK 73542 Bankruptcy Case No.: 07-11827 Type of Business: The Debtor owns and operates a nursing home. Chapter 11 Petition Date: May 31, 2007 Court: Western District of Oklahoma (Oklahoma City) Judge: Richard L. Bohanon Debtor's Counsel: Gary L. Morrissey, Esq. Consumer Legal Counselling Center, P.C. 1725 Linwood Boulevard Oklahoma City, OK 73106 Tel: (405) 272-1500 Fax: (405) 272-3090 Total Assets: $2,219,881 Total Debts: $2,794,353 Debtor's 16 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ P.A.M.I. Healthcare 110 bed $2,038,000 2005, L.L.C. nursing home, %David Pomeroy, Esq. 313 East 100 North Broadway Lucille, Oklahoma City, OK 73102 Frederick, Oklahoma; value of security: $1,600,000 City of Frederick loan $120,000 P.O. Box 399 Frederick, OK 73542-0399 Internal Revenue Service income taxes $118,524 P.O. Box 21126 Philadelphia, PA 19114 Department of Health & civil penalty $68,850 Human Services Total Medical Personnel open account $45,744 Service Robinson Medical Resource open account $41,170 Oklahoma Dept. of Labor $40,000 wage claims $29,888 civil penalty $10,000 Compsource Oklahoma judgment $20,807 Nita R. Giles, Inc. open account $16,937 Cash Recovery, L.L.C. open account $11,778 C.M.S. open account $11,946 Gulf South Medical Supply open account $10,205 P.R.N. Funding open account $8,913 Direct Personnell, L.L.C. open account $8,578 Tillman County Treasurer personal $7,812 property tax Frederick Medical Clinic open account $7,300 CREDIT SUISSE: Fitch Affirms BB+ Rating on 2006-4 Class B-3 Certs. ------------------------------------------------------------------ Fitch Ratings has affirmed 22, upgraded 1 and placed 1 class of residential mortgage-backed certificates on Rating Watch Negative from the four Credit Suisse First Boston securitizations: CSFB series 2001-HE8 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AAA'; -- Class M-2 affirmed at 'AA'; -- Class B affirmed at 'BBB-'. CSFB series 2001-HS27 -- Class B upgraded to 'AAA' from 'A'. CSFB Home Equity Asset Trust, series 2006-4 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-'; -- Class M-8 affirmed at 'BBB+'; -- Class B-1 affirmed at 'BBB'; -- Class B-2 affirmed at 'BBB-'; -- Class B-3 affirmed at 'BB+'; -- Class B-4, rated 'BB', placed on Rating Watch Negative. CSMC series 2006-CF1 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class B-1 affirmed at 'BBB+'; -- Class B-2 affirmed at 'BBB'; -- Class B-3 affirmed at 'BBB-'. The collateral of the above transactions consists of first and second lien fixed- and adjustable-rate subprime mortgage loans. As of the April 2007 distribution date, the transactions are seasoned from a range of 11 months (series 06-4) to 73 months (series 2001-HE8), and the pool factors (current collateral balance as a percentage of original collateral balance) range from approximately 7% (series 2001-HE to 73% (series 06-4). All of the mortgage loans were purchased by an affiliate of the depositor from various sellers in secondary market transactions. The upgrades reflect an improved relationship between credit enhancement and expected future loses and affect approximately $4 million in outstanding certificates, as of the April 2007 distribution date. The affirmations reflect adequate relationships of credit enhancement to future loss expectations and affect approximately $1.3 billion of outstanding certificates. The class B-4 bond from the HEAT 2006-4 transaction was placed on Rating Watch Negative due to early negative trends in the relationship between serious delinquency and credit enhancement. The transaction has delinquency figures above the industry average. The high delinquency appears to be partially driven by high concentrations of loans with reported piggyback second liens. Approximately 40% of the pools consist of loans with piggyback second liens. Loans with piggyback second liens have performed particularly poorly as the housing market has cooled. For HEAT 2006-4, the amount of loans in Foreclosure and REO at eleven months seasoning as a percentage of the current pool balance is 6.4%. The subordination of the B-4 class is 1.3%. The excess spread available to cover losses as an annualized percentage of the current pool balance is approximately 1.77%. The mortgage loans are being serviced by Wells Fargo Home Mortgage, Inc. (rated 'RPS1' by Fitch), and Select Portfolio Servicing, Inc. (rated 'RPS2'). The depositor is Credit Suisse First Boston Mortgage Securities Corp. CREST CLARENDON: Fitch Affirms BB Rating on $10 Million Notes ------------------------------------------------------------- Fitch has upgraded three and affirmed two classes of notes issued by Crest Clarendon Street 2002-1: -- $189.2 million class A affirmed at 'AAA'; -- $29 million class B-1 upgraded to 'AA' from 'A+'; -- $10 million class B-2 upgraded to 'AA' from 'A+'; -- $15 million class C upgraded to 'A-' from 'BBB+'; -- $10 mi1llion class D affirmed at 'BB'. Fitch does not rate the $8 million Preferred Shares. Crest Clarendon is a collateralized debt obligation, which closed Sept. 19, 2002, supported by a static pool of commercial mortgage- backed securities (CMBS: 53.15%) and real estate investment trust (REIT: 46.85%) debt. Massachusetts Financial Services Company Investment Management selected the initial collateral and serves as the collateral administrator. The upgrades are driven primarily by the improved credit quality of the portfolio, seasoning of the collateral, and delevering of the capital structure. The CDO has paid down $38.8 million since issuance, representing 12.95% of the collateral. Since Fitch's last review, 44.23% of the portfolio has been upgraded an average of 2.2 notches and 3.54% has been downgraded an average of one notch. The weighted average rating factor has improved to the 'BBB+/BBB' category from the 'BBB/BBB-' at last review and 'BBB- /BB+' at issuance. No asset has a rating less than 'BB+'. The weighted average life has decreased to 3.78 from 4.72 at last review. Interest collateralization tests have remained stable and overcollateralization tests have continued to improve due to delevering of the CDO liabilities. There are no defaulted or distressed assets in the portfolio. The CMBS assets in the collateral pool range from the 1997 vintage to the 2002 vintage with none being first loss classes. Due to defeasance and amortization, Fitch believes these CMBS vintages are a positive factor in this transaction. The rating of the class A addresses the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the classes B-1, B- 2, C, and D notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. CWALT INC: Fitch Puts Low-B Ratings on $4.9 Million Certificates ---------------------------------------------------------------- Fitch Ratings has assigned CWALT, Inc.'s mortgage pass-through certificates, Alternative Loan Trust 2007-14T2 these ratings as: -- $387,396,661 classes A-1 through A-12, X, PO, and A-R senior certificates 'AAA'; -- $12,076,400 class M 'AA'; -- $5,621,400 class B-1 'A'; -- $4,163,900 class B-2 'BBB'; -- $2,914,800 class B-3 'BB'; -- $2,082,000 class B-4 'B'. The 'AAA' rating on the senior certificates reflects the 6.95% subordination provided by the 2.9% class M, the 1.35% class B-1, the 1% class B-2, the 0.7% privately offered class B-3, the 0.5% privately offered class B-4 and the 0.5% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing; rated 'RMS1' by Fitch) a direct wholly owned subsidiary of Countrywide Home Loans, Inc. As of the cut-off date (May 1, 2007) the mortgage pool consists primarily of 30-year conventional, fully amortizing mortgage loans, secured by first liens on one- to four-family residential properties totaling $416,396,662. The average loan balance is $632,822, with an approximate weighted-average original-loan-to- value of 69.05. The weighted average FICO credit score is approximately 687. Cash-out refinance loans represent 51.7% of the mortgage pool and second homes 4.9%. The states that represent the largest portion of mortgage loans are California (29.4%), New York (11.4%), Florida (8.2%), and New Jersey (6.1%). All other states represent less than 5% of the May 1, 2007 pool balance. CWALT purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CWALT INC: Fitch Puts Low-B Ratings on $4.24 Million Certificates ----------------------------------------------------------------- Fitch rates CWALT, Inc.'s Mortgage pass-through certificates, Alternative Loan Trust 2007-J2 as: -- $253.03 million classes 1-A-1, 1-A-2, 2-A-1 through 2-A-11, 1-X, 2-X, PO-1, PO-2, and A-R certificates (senior certificates) 'AAA'; -- $8.09 million class M certificates 'AA'; -- $4.25 million class B-1 certificates 'A' -- $2.47 million class B-2 certificates 'BBB'; -- $2.74 million privately offered class B-3 certificates 'BB'; -- $1.50 million privately offered class B-4 certificates 'B'. The 'AAA' rating on the senior certificates reflects the 7.80% subordination provided by the 2.95% class M, the 1.55% class B-1, the 0.90% class B-2, the 1% privately offered class B-3, 0.55% privately offered class B-4 and the 0.85% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB' and 'B' based on their respective subordination only. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP, rated RMS1- by Fitch, a direct wholly owned subsidiary of Countrywide Home Loans, Inc. The mortgage pool consists of two loan groups, which are cross- collateralized. Loan Group 1 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $100,029,745 as of the cut-off date, May 1, 2007, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average original-loan- to-valueof 78.59%. The weighted average FICO credit score is approximately 675. Cash-out refinance loans represent 44.2% of the mortgage pool and second homes 6.2%. The average loan balance is $465,255. The three states that represent the largest portion of mortgage loans are California (28%), New York (8.2%), Maryland (6.3%), New Jersey (5.5%), and Arizona (5.2%). All other states represent less than 5% of the cut-off date pool balance. Loan Group 2 consists primarily of 30-year conventional, fully amortizing mortgage loans totaling $174,415,220 as of the cut-off date, May 1, 2007, secured by first liens on one-to four- family residential properties. The mortgage pool, as of the cut-off date, demonstrates an approximate weighted-average OLTV of 74.43%. The weighted average FICO credit score is approximately 701. Cash- out refinance loans represent 40.1% of the mortgage pool and second homes 5.8%. The average loan balance is $660,664. The states that represent the largest portion of mortgage loans are California (42.8%), Florida (9.9%), and New York (6.7%). All other states represent less than 5% of the cut-off date pool balance. CWALT purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CWMBS INC: Fitch Assigns Low-B Ratings on $2.45 Mil. Certificates ----------------------------------------------------------------- Fitch Ratings has assigned CWMBS, Inc.'s mortgage pass-through certificates, CHL Mortgage Pass-Through Trust 2007-9 these ratings: -- $679,699,987 classes A-1 through A-15, X, PO, and A-R senior certificates 'AAA'; -- $10,850,000 class M 'AA'; -- $3,850,000 class B-1 'A'; -- $2,100,000 class B-2 'BBB'; -- $1,400,000 privately offered class B-3 'BB'; -- $1,050,000 privately offered class B-4 'B'. The 'AAA' rating on the senior certificates reflects the 2.9% subordination provided by the 1.55% class M, the 0.55% class B-1, the 0.3% class B-2, the 0.2% privately offered class B-3, the 0.15% privately offered class B-4 and the 0.15% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing; rated 'RMS1' by Fitch) a direct wholly owned subsidiary of Countrywide Home Loans, Inc. As of the initial cut-off date (May 1, 2007) the aggregate stated principal balance of the mortgage loans conveyed to the issuing entity on the closing date, April 27, 2007, was less than $700,000,000, an account will be established with the trustee on the closing date and funded in an amount equal to the difference. The pre-funded amount to be deposited in the pre-funded account is expected to be approximately $116,533,652. The funding period will begin on the closing date and end on the earlier of (i) the date the amount in the pre-funding account is less than $150,000 and (ii) June 30, 2007. Any pre-funded amount is expected to be used to purchase supplemental mortgage loans. Any pre-funded amount not used during the funding period to purchase supplemental mortgage loans will be distributed to holders of the senior certificates as a prepayment of principal on the distribution date immediately following the end of the funding period. As of May 1, 2007, the mortgage pool consists primarily of 30-year conventional, fully amortizing mortgage loans, secured by first liens on one- to four-family residential properties totaling $583,466,348. The average mortgage pool balance is $607,777, with an approximate weighted-average original loan-to-value ratio of 71.90%. The weighted average FICO credit score is approximately 750. Cash-out refinance loans represent 26% of the mortgage pool and 5.5% of second homes. The states that represent the largest portion of mortgage loans are California (38.6%) and Virginia (6.4%). All other states represent less than 5% of the pool as of May 1, 2007. CWMBS purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. CWMBS INC: Fitch Puts Low-B Ratings on Two Certificate Classes -------------------------------------------------------------- Fitch rates CWMBS, Inc.'s mortgage pass-through certificates, CHL Mortgage Pass-Through Trust 2007-8 as: -- $825,075,000 classes 1-A-1 through 1-A-25, X and A-R senior certificates 'AAA'; -- $17,527,500 class M 'AA'; -- $5,130,000 class B-1 'A'; -- $2,992,500 class B-2 'BBB'; -- $1,710,000 privately offered class B-3 'BB'; -- $855,000 privately offered class B-4 'B'; The 'AAA' rating on the senior certificates reflects the 3.50% subordination provided by the 2.05% class M, 0.60% class B-1, 0.35% class B-2, 0.20% privately offered class B-3, 0.10% privately offered class B-4 and 0.20% privately offered class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their respective subordination only. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults. In addition, the rating also reflects the quality of the underlying mortgage collateral, strength of the legal and financial structures and the master servicing capabilities of Countrywide Home Loans Servicing LP (Countrywide Servicing; rated 'RMS1-' by Fitch) a direct wholly owned subsidiary of Countrywide Home Loans, Inc. As of the cut-off date (May 1, 2007), the mortgage pool consists primarily of 30-year conventional, fully amortizing mortgage loans, secured by first liens on one- to four-family residential properties totaling $795,282,868. The average mortgage pool balance is $625,714, with an approximate weighted-average original loan-to-value ratio (OLTV) of 73.12%. The weighted average FICO credit score is approximately 744. Cash-out refinance loans represent 24.4% of the mortgage pool and second homes 6.3%. The state that represents the largest portion of mortgage loans is California (37.4%). All other states represent less than 5% of the pool as of May 1, 2007. CWMBS purchased the mortgage loans from CHL and deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. The Bank of New York will serve as trustee. For federal income tax purposes, an election will be made to treat the trust fund as one or more real estate mortgage investment conduits. DAIMLERCHRYSLER AG: Chrysler Group's May 2007 U.S. Sales Rise 4% ---------------------------------------------------------------- Chrysler Group reported sales for May 2007 of 199,393 units; up 4% compared to May 2006 with 191,261. All sales figures are reported unadjusted. "Chrysler Group increased overall sales in May based on a strong retail performance and while fleet sales were down," Darryl Jackson, Vice President - U.S. Sales, said. "Especially our new offerings in the car segment continued to gain momentum, supported by the fuel economy message of our 'Maximize Your Miles' program. Driven by models like the Chrysler Sebring, Dodge Avenger and Dodge Caliber, the company's car sales increased 15 percent over the previous year." Chrysler brand car sales in May were up 22% year-over-year, while Dodge brand car sales increased 11%. Chrysler Group's offerings in the car segment include the Chrysler Sebring Sedan and Sebring Convertible, Chrysler 300, Dodge Avenger, Dodge Caliber and Dodge Charger. Jeep(R) brand sales continued to increase in May after an already strong April and posted a gain of 20% over the previous year. This result was driven by the continuously strong Jeep Wrangler and the Jeep Patriot. Jeep Wrangler and Wrangler Unlimited posted sales of 12,332 units, an all-time record for the month of May and up 114% compared to May 2006 with 5,754 units. The Jeep Patriot also continued its momentum and finished May with sales of 4,504 units, up 55% from April 2007. The vehicle is one of Chrysler Group's recently introduced models that achieve 30 miles per gallon or better in highway driving. The Chrysler Sebring Convertible posted sales of 3,082 units in the second month of availability of the 2008 model, an increase of 113% over April 2007. The redesigned model offers what no other convertible has offered before -- three automatically latching convertible top options: vinyl, cloth and a body-color painted steel retractable hard top, all of which can be retracted with a push of a button on the key fob. Sales of the Dodge brand increased in May by 3%, fueled by strong demand for the Dodge Ram pick up truck. The model finished May with sales of 31,327 units, up 6% year-over-year in a highly competitive segment and on the heels of four already very successful months in 2007. "As our strong car sales in May demonstrate, the recently launched 'Maximize Your Miles' program resonates well with customers and will be continued in June," Michael Keegan, Vice President - Volume Planning and Sales Operations, said. "Facing continued pressure on gas prices, the program communicates Chrysler Group's fuel economy message across all three of our brands and offers customers a great value package based on low-rate financing plus additional bonus cash." Chrysler Group finished the month with 479,501 units of inventory, or a 63-day supply. Inventory is down by 19% compared to May 2006 when it was at 592,486 units. DALE BOHAN: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Dale E. Bohan dba Cazadero General Store 6115 Cazadero Highway Cazadero, CA 95421 Bankruptcy Case No.: 07-10634 Chapter 11 Petition Date: May 30, 2007 Court: Northern District of California (Santa Rosa) Judge: Alan Jaroslovsky Debtor's Counsel: David N. Chandler, Esq. 1747 4th Street Santa Rosa, CA 95404 Tel: (707) 528-4331 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. DEUTSCHE SECURITIES: Fitch Rates $8 Million Certificates at BB -------------------------------------------------------------- Fitch rates Deutsche Alt-A Securities Inc.'s mortgage pass- through certificates, series 2007-OA3 as: -- $1.242 billion classes A-1, A-2 and A-3 (senior certificates) 'AAA'; -- $22 million class M-1 'AA+'; -- $8.7 million class M-2 'AA'; -- $6.7 million class M-3 'AA-'; -- $6.7 million class M-4 'A+'; -- $6.7 million class M-5 'A'; -- $6.7 million class M-6 'A-'; -- $6.7 million class M-7 'BBB+'; -- $6.7 million class M-8 'BBB'; -- $6.7 million class M-9 'BBB-'; -- $8 million class M-10 'BB'. The 'AAA' ratings on the senior certificates are based on the 6.95% total credit enhancement provided by the 1.65% class M-1, 0.65% class M-2, 0.50% class M-3, 0.50% class M-4, 0.50% class M- 5, 0.50% class M-6, 0.50% class M-7, 0.50% class M-8, 0.50% class M-9, the privately offered 0.60% class M-10, and the initial and target overcollateralization of 0.55% and 0.55%, respectively. All certificates have the benefit of monthly excess cash flow to absorb losses. The ratings also reflect the quality of the loans, the soundness of the legal and financial structures. The mortgage pool consists of 2,671 conventional, one- to four- family, first lien, negative amortization mortgage loans on residential real properties with original terms to maturity of not more than 40 years. As of the closing date the initial mortgage balance will be $1,206,034,096 and $129,025,680 will be put in a pre-funding account to purchase subsequent loans. The pre-funding period will last from the closing date until July 1, 2007. As of the cut-off date 98.98% of the principal balance of the mortgage loans was adjustable-rate mortgage loans and 1.02% of the principal balance of the mortgage pool was fixed-rate mortgage loans. The weighted average FICO credit score is approximately 719 and the weighted average loan-to-value ratio is approximately 73.99%. The properties are primarily located in California 67.70%) and Florida (6.80%). All of the mortgage loans are negative amortization loans. Approximately 1.03% of the mortgage loans are option ARM loans that have an introductory fixed rate for up to three months, then the rate will adjust monthly, but their monthly payments and amortization schedules will adjust annually and are subject to payment caps. Approximately 97.94% of the mortgage loans are hybrid option ARM loans. The interest rates on these loans adjust after initial fixed rate period of three, five or seven years after origination (semiannually or annually). Approximately 1.02% of the mortgage loans are fixed rate option arms that do not adjust. During the initial fixed rate period with respect to a hybrid option ARM loan, or until the unpaid principal balance of that mortgage loan reaches its maximum limit, the minimum payment payable will be based on a fixed 'minimum payment rate' that is lower than the initial fixed rate. DB Structured Products, Inc. bought the loans from the originators and sold them to MortgageIT Securities Corp. MortgageIT Securities Corp then sold the loans to Deutsche Alt-A Securities Mortgage Loan Trust 2007-OA3. MortgageIT will assign all its interest in the mortgage loans to the trustee for the benefit of certificate holders. For federal income tax purposes, an election will be made to treat the trust as multiple real estate mortgage investment conduits. HSBC Bank USA, National Association will act as trustee, CountryWide (rated 'RPS1' by Fitch) will service 67.40% of the loans, and GMAC (rated 'RPS1' by Fitch) will service 32.60% of the loans. Wells Fargo (rated 'RMS1' by Fitch) will act as Master Servicer. DUQUESNE LIGHT: Fitch Pares Issuer Default Rating to BB+ from BBB- ------------------------------------------------------------------ Fitch Ratings has downgraded the Issuer Default Rating and senior unsecured debt ratings of Duquesne Light Holdings, Inc. (DQE - formerly known as DQE, Inc.) to 'BB+' from 'BBB-'. In addition, Fitch has affirmed DQE subsidiary, Duquesne Light Company's: -- Issuer Default Rating at 'BBB-'; -- Senior secured debt at 'BBB+'; -- Preferred securities at 'BBB-'; -- Short-term debt at 'F2'. The Rating Outlook for all of the above securities is Stable. Approximately $1.3 billion of outstanding debt and preferred securities are affected by the rating action. The downgrade of DQE's ratings reflects the meaningful increase in holding company debt leverage at the close of its pending acquisition by a consortium led by Macquarie Infrastructure Partners and Diversified Utility and Energy Trusts (collectively, Macquarie). The incremental debt burden to fund the acquisition is estimated by Fitch Ratings at approximately $770 million, net of retirements. Given the ownership structure, Fitch believes the initial post-merger debt burden is unlikely to decline and the financing of future capital requirements is uncertain. Under the terms of the proposed acquisition, Macquarie is to acquire all of DQE's outstanding common equity for approximately $1.8 billion or $20 per share. In addition, Macquarie will assume DQE's outstanding debt and preferred securities, which approximated $1.2 billion and $147 million, respectively, at the end of the first quarter 2007. The affirmation of DLC's ratings consider the relatively predictable earnings and cash flow generated by the utility's regulated transmission and distribution business and solid stand- alone credit measures. The ratings also consider parent DQE's reliance on the utility cash flows to service its considerable post-acquisition debt burden. The Stable Rating Outlook for DQE and DLC assumes a continued focus on utility operations and a reasonable regulatory environment in Pennsylvania. Duquesne Light Holdings: -- Issuer Default Rating downgraded to 'BB+' from 'BBB-'; -- Senior unsecured debt downgraded to 'BB+' from 'BBB-'. Duquesne Light Company: -- Issuer Default Rating affirmed at 'BBB-'; -- senior secured debt affirmed at 'BBB+'; -- preferred securities affirmed at 'BBB-'; -- Short-term debt affirmed at 'F2'. ENCYSIVE PHARMACEUTICALS: 72.9 Million Shares Issued at June 1 -------------------------------------------------------------- Encysive Pharmaceuticals Inc. said that as of June 1, 2007, the total number of issued and outstanding shares of the company's common stock was 72,974,120 shares. On October 19, 2006, the company entered into a Common Stock Purchase Agreement with Azimuth Opportunity Ltd., which provided that Azimuth was committed to purchase up to $75,000,000 of the company's common stock, or the number of shares that is one less than 20% of the issued and outstanding shares of the company's common stock as of October 19, 2006, whichever occurs first, over the 18-month term of the Purchase Agreement. As of June 1, 2007, the company had closed an aggregate of five draw down requests under the Purchase Agreement and had received aggregate gross proceeds of approximately $45,450,474, and net proceeds of approximately $44,856,656 after deducting estimated offering expenses. As a result of the five draw down requests, the company has issued to Azimuth the maximum number of shares of the company's common stock permitted to be issued under the Purchase Agreement and the Purchase Agreement terminated pursuant to its terms. About Encysive Pharmaceuticals Headquartered in Houston, Texas, Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) -- http://www.encysive.com/-- is a biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. The company has successfully developed one FDA approved drug, Argatroban, for the treatment of heparin-induced thrombocytopenia, which is licensed to and marketed by GSK. The company's lead drug candidate, Thelin(TM) is an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension. Going Concern Doubt As reported in the Troubled Company Reporter on April 30, 2007, KPMG LLP, in Houston, expressed substantial doubt about Encysive Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. ENESCO GROUP: Hires Baker & McKenzie as Hong Kong Tax Counsel ------------------------------------------------------------- The United States Bankruptcy Court for the Northern District of Illinois gave Enesco Group Inc. and two debtor-affiliates authority to employ Baker & McKenzie as their special tax counsel in connection with their Hong Kong tax appeals, effective as of March 16, 2007. The firm is expected to: (a) give the Debtors legal advice with respect to their rights, powers and duties in connection with the Tax Appeal and litigation related to the Tax Appeal proceedings; (b) prepare applications, motions, complaints, orders and other legal documents as may be necessary in connection with the appropriate administration of the Tax Appeal; (c) participate on behalf of the Debtors in matters before the Inland Revenue Board of Review and the courts in Hong Kong relating to the Tax Appeal; and (d) perform any and all other legal services on behalf of the Debtors, which may be required to aid in the proper administration of the pending Tax Appeal proceedings. The Debtors have agreed to pay Baker with a $25,000 retainer and to compensate Baker according to the firm's standard rates for tax appeals of the size and complexity as the Tax Appeal. As of May 4, 2007, Baker's hourly rates ranged from $620 to $840 for partners and US$260 to US$645 for associates. Baker's rates are reviewed annually and adjusted periodically. The Debtors assured the Court that Baker does not hold or represent any adverse interest in connection to the Debtors and the estates. About Enesco Group Headquartered in Itasca, Illinois, Enesco Group, Inc. --- http://www.enesco.com/-- is a producer of giftware, and home and garden decor products. Enesco's product lines include some of the world's most recognizable brands, including Disney, Heartwood Creek, Nickelodeon, Cherished Teddies, Lilliput Lane, Border Fine Arts, among others. Enesco distributes products to a wide array of specialty gift retailers, home decor boutiques and direct mail retailers, as well as mass-market chains. The company serves markets operating in Europe, particularly in the United Kingdom and France, as well in the Asia Pacific in Australia and Hong Kong. The Company also has Latin-American operations in Mexico. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. Enesco Group and its two affiliates, Enesco International Ltd. and Gregg Manufacturing, Inc., filed for chapter 11 protection on Jan. 12, 2007 (Bankr. N.D. Ill. Lead Case No. 07-00565). Shaw Gussis Fishman Glantz Wolfson & Tow and Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors. The Debtors' financial condition as of Nov. 30, 2006, showed total assets of US$155,350,698 and total debts of US$107,903,518. ENRON CORP: Inks $61.5 Million Credit Suisse Settlement Agreement ----------------------------------------------------------------- Enron Creditors Recovery Corp. has reached an agreement with Credit Suisse International and Credit Suisse Securities (USA) LLC to settle the equity transactions adversary proceeding that Enron filed against Credit Suisse in the Enron bankruptcy case. According to the terms of the agreement, Credit Suisse will pay Enron $61.5 million in cash. Credit Suisse in entering into the settlement denies any liability. With this settlement, all bankruptcy proceedings between Enron and Credit Suisse are resolved. Commenting on the settlement, John J. Ray III, Enron's Board Chairman, said, "We are pleased with this settlement reached with Credit Suisse and look forward to successfully resolving the remaining equity transactions cases." Equity transactions cases remain pending against UBS AG and Bear, Stearns. Enron's complaint against Credit Suisse includes claims asserting preferences, fraudulent transfers and/or conveyances, and recovery of payments pursuant to other applicable federal and state law. The Credit Suisse settlement remains subject to the approval of the U.S. Bankruptcy Court for the Southern District of New York. About Enron Corporation Based in Houston, Texas, Enron Corporation filed for chapter 11 protection on December 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. ENZON PHARMA: March 31 Balance Sheet Upside-down by $55.5 Million ----------------------------------------------------------------- Enzon Pharmaceuticals Inc.'s balance sheet at March 31, 2007, showed $368.8 million in total assets and $424.3 million in total liabilities, resulting in a $55.5 million total stockholders' deficit. Enzon Pharmaceuticals Inc. reported a net loss of $1.9 million on total revenues of $41.5 million for the first quarter ended March 31, 2007, as compared to net income of $21.7 million on total revenues of $44.7 million for the same quarter in 2006. First quarter results in 2006 were favorably impacted by the $13.8 million gain from the sale of marketable securities. "Our results this quarter are very much in line with our stated goal of investing in novel development programs, particularly in oncology." said Jeffrey H. Buchalter, chairman and chief executive officer of Enzon. "We are building an impressive pipeline, utilizing cutting-edge technology that we hope will transform tomorrow's therapeutic options for cancer patients." Products segment sales, comprised of sales of Oncaspar(R), DepoCyt(R), Abelcet(R) and Adagen(R), were $22.7 million for the three months ended March 31, 2007, compared to $24.3 million for the three months ended March 31, 2006. The company continues to experience growth in its oncology products, Oncaspar and DepoCyt. The decrease in sales for the product segment this quarter is mainly attributable to the continued competitive environment for Abelcet. Revenues from the company's Royalties segment for the three months ended March 31, 2007 were $16.3 million, as compared to $17.2 million for the three months ended March 31, 2006. The reduction in royalties from the prior year was due primarily to expected competition for Macugen in the U.S. The majority of royalties is comprised of royalty revenue the company receives on sales of PEG-INTRON, which remained relatively stable this quarter. The company's revenues from its Contract Manufacturing segment were $2.5 million for the three months ended March 31, 2007, as compared to $3.2 million in the corresponding period of the prior year. The contract manufacturing segment includes contract manufacturing revenues related to services the company provides for a number of customers who require injectable products. The decrease in contract manufacturing revenue was primarily attributable to the timing of shipments to its customers. The company's cost of goods sold was $11.5 million for the three months ended March 31, 2007, as compared to $10.5 million for the three months ended March 31, 2006. This increase is associated with the timing of production of certain products, as well as the additional amortization of the payment made to secure the supply of L-asparaginase. The company's research and development expenses were $13.2 million for the three months ended March 31, 2007, as compared to $7.0 million for the three months ended March 31, 2006. This significant increase in R&D was expected and was attributable to the multiple programs underway to build the company's product pipeline. This includes research and development programs for rhMBL, PEG-SN38, Oncaspar, the HIF-1 alpha antagonist and other LNA- and PEGylation-based programs. Enzon remains committed to its objective of delivering long-term value by creating a differentiated oncology pipeline. Selling, general and administrative expenses increased to $16.2 million for the three months ended March 31, 2007, as compared to $15.8 million for the three months ended March 31, 2006. Selling, General and Administrative expenses remained relatively constant. The company continues to make selective investments in selling, marketing, and other initiatives to further its objective of delivering long-term value. The company announced in February 2007 plans to consolidate its manufacturing site in South Plainfield, N.J. into its Indianapolis site. As a result of this decision, the company recorded a $569,000 charge this quarter for related severance costs that will be paid at the completion of the consolidation. Net other income (expense) is comprised of investment income, interest expense, and other non-operating expenses. The company reported other expense of $1.9 million for the three months ended March 31, 2007, as compared to other income of $10.7 million in the same period in the prior year. The difference is due primarily to the gain of $13.8 million from the sale of Nektar shares in the first quarter of 2006. During the first quarter of 2007, the company purchased $4.0 million of its outstanding convertible debt due in 2008. This purchase resulted in a small gain due to the purchase at a discount to par. Total cash reserves decreased to $198.4 million as of March 31, 2007, as compared to $240.6 million as of Dec. 31, 2006. Cash reserves include cash, cash equivalents, short-term investments, and marketable securities. The net decrease in cash reserves was primarily the result of payments communicated in February 2007 when the company announced their results for the year ended Dec. 31, 2006. These obligations, were included in the company's Dec. 31, 2006, financial statements, however the payments were made in the first quarter of 2007. These payments include the $5.0 million milestone for filing the HIF-1 alpha antagonist IND, the $17.5 million payment to Ovation to secure the long-term supply of L-asparaginase, and the $7.0 million payment for related legal services associated with the new supply agreement. In addition, this quarter, the company retired $4.0 million of its convertible notes. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at: http://researcharchives.com/t/s?208e About Enzon Pharmaceuticals Headquartered in Bridgewater, New Jersey, Enzon Pharmaceuticals Inc. (NasdaqGM: ENZN) -- http://www.enzon.com/-- is a biopharmaceutical company dedicated to the development, manufacturing, and commercialization of important medicines for patients with cancer and other life-threatening conditions. Enzon has a portfolio of four marketed products, Oncaspar(R), DepoCyt(R), Abelcet(R) and Adagen(R). EPIX PHARMA: March 31 Balance Sheet Upside-down by $50.8 Million ---------------------------------------------------------------- EPIX Pharmaceuticals Inc.'s balance sheet at March 31, 2007, showed $112.2 million in total assets and $163.0 million in total liabilities, resulting in a $50.8 million total stockholders' deficit. EPIX Pharmaceuticals Inc. reported a net loss of $19.5 million for the first quarter ended March 31, 2007, compared with a net loss of $4.5 million for the same period in 2006. The increase in the net loss is primarily due to increased research and development expenses associated with the four clinical programs acquired as a result of the company's merger with Predix, as well as significant non-recurring legal and accounting costs relating to the now completed investigation of the company's prior stock option practices. Total revenues in the first quarter of 2007 were $2.0 million, compared to $1.7 million in the first quarter of 2006. "We already have achieved several key milestones in the early part of this year, including the positive results from our Phase 1b trial of PRX-07034 and our continued progress in advancing our pipeline and building our internal corporate structure," said Michael G. Kauffman, M.D., Ph.D., chief executive officer of EPIX. "We believe EPIX is well positioned for near-term catalysts and the achievement of key corporate clinical milestones in 2007." Research and development expenses totaled $13.5 million in the first quarter of 2007, compared to $3.9 million in the first quarter of 2006. The increase in research and development expenses is primarily attributable to the company's clinical development programs as well as costs for the pre-clinical programs and internal costs which began after the Predix acquisition was completed on August 16, 2006. General and administrative expense was $8.6 million in the first quarter of 2007 compared to $2.4 million in the first quarter of 2006. The increase in general and administrative expense is due primarily to legal and accounting costs associated with the stock option probe of the company's historical stock option practices that was completed in the first quarter of 2007, as well as increased costs associated with an increase in personnel and infrastructure. Additionally, EPIX incurred greater legal expenses, including for patent-related matters, due to the increased complexity of the post-merger company. As of March 31, 2007, EPIX had cash, cash equivalents and short- term investments of $95.0 million compared to $109.5 million on Dec. 31, 2006. EPIX currently has $100.0 million of convertible debt outstanding. Approximately 32.6 million shares of common stock were outstanding at March 31, 2007. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2091 About EPIX Pharmaceuticals Headquartered in Lexington, Mass., EPIX Pharmaceuticals Inc. (NasdaqGM: EPIX) -- http://www.epixmed.com/-- is a biopharmaceutical company focused on discovering, developing and commercializing novel pharmaceutical products through the use of proprietary technology to better diagnose, treat and manage patients. The company has five internally-discovered therapeutic and imaging drug candidates currently in development for conditions such as depression, Alzheimer's disease, cardiovascular disease and obesity. The company also has a blood-pool imaging agent, Vasovis(TM), approved in 32 countries and marketed in Europe. FIRST HORIZON: Fitch Puts Low-B Ratings on $7.88 Mil. Certificates ------------------------------------------------------------------ Fitch rates First Horizon Asset Securities Inc. mortgage pass- through certificates, Series 2007-3 as: -- $218.561 million classes A-1 through A-5, A-PO, and A-R, (senior certificates) 'AAA'; -- $3.605 million class B-1 'AA'; -- $1.352 million class B-2 'A'; -- $676,000 class B-3 'BBB'; -- $450,000 class B-4 'BB'; -- $338,000 class B-5 'B'. The class B-6 certificate is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 3.00% subordination provided by the 1.60% class B-1, the 0.60% class B- 2, the 0.30% class B-3, the 0.20% privately offered class B-4, the 0.15% privately offered class B-5, and the 0.15% privately offered class B-6 certificates. The ratings on the class B-1, B-2, B-3, B-4, and B-5 certificates are based on their respective subordination. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud, and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of First Horizon Home Loan Corporation, currently rated 'RPS2' by Fitch. As of the cut-off date, May, 1st, 2007, the aggregate Pool consists of conventional, fully amortizing, fixed-rate mortgage loans secured by first liens on single-family residential properties, substantially all of which have original terms to maturity of 30 years. Approximately 34.5% of the mortgage loans in the aggregate pool have interest only payments scheduled for a period of ten years following the origination date of the mortgage loan. Thereafter, monthly payments will be increased to include principal and interest payments to sufficiently amortize the loan over the remaining term. The aggregate principal balance of the pool is $225,320,315 and the average principal balance is approximately $625,890. The mortgage pool has a weighted average original loan-to-value ratio of 72.9% and the weighted average FICO is 754. The states with the largest concentrations are California (23.1%), Washington (11.5%), Virginia (8.2%), Maryland (7.1%), Arizona (6.0%), and Tennessee (5.6%). All other states represent less than 5% of the aggregate pool as of the cut-off date. All of the mortgage loans were originated or acquired in accordance with First Horizon Home Loan Corporation's underwriting guidelines. The trust, First Horizon Mortgage Pass-Through Trust 2007-3, was created for the sole purpose of issuing the certificates. For federal income tax purposes, an election will be held to treat the trust as multiple real estate mortgage investment conduits. The Bank of New York will act as trustee. FORD MOTOR: May 2007 Sales Up by 9.4%, Truck Sales Up by 25% ------------------------------------------------------------ The Ford Edge continues to energize the crossover revolution, recognizing its fifth consecutive month of growth, and is among a strong group of trucks and crossovers that posted record setting sales, leading to a 9.4% increase in sales for the Ford Motor Company of Canada, Limited in May. "The buzz on the Ford Edge continues to build and so do the sales," Bill Osborne, president and CEO, Ford of Canada, said. "Our selection of cars, crossovers and trucks deliver the attributes Canadians value -- striking design, great price, safety, versatility and fuel efficiency -- and consistently meet the ever-changing needs of consumers." In May, Ford of Canada saw overall combined sales increase of 9.4% at 25,218 units. Total truck sales were up 24.5% at 18,098 units. Although car sales of 7,120 units marks a 16.3% decline, the Ford Mustang and Fusion scored solid sales with increases of 16.5% and 9% respectively. Ford Motor Company of Canada, Limited May 2007 Vehicle Sales 2007 2006 % Change ---- ---- -------- Total Vehicles May 25,218 23,044 +9.4 January - May 92,716 94,008 -1.4 Total Cars May 7,120 8,503 -16.3 January - May 23,234 30,199 -23.1 Total Trucks May 18,098 14,541 +24.5 January - May 69,482 63,809 +8.9 About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. * * * As reported in the Troubled Company Reporter on Dec. 12, 2006, Standard & Poor's Ratings Services affirmed its 'B' bank loan and '2' recovery ratings on Ford Motor Co. 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'. 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. GENERAL MOTORS: May 2007 Sales Up by 8.5% ----------------------------------------- General Motors Corp. dealers in the United States delivered 375,682 vehicles in May, up 4.7 percent compared with year-ago monthly sales. On an unadjusted basis, sales were up 8.8%. GM's May retail sales of 279,731 were up 8.5%. On an unadjusted basis, retail sales were up 12.8 percent compared with a year ago. May sales reflected the continuing strength of GM's new product portfolio. Increased sales of Chevrolet Impala and Saturn AURA as well as the new industry leading mid-size crossovers GMC Acadia, Saturn OUTLOOK and Buick Enclave demonstrate GM's strong positioning in the marketplace for fuel-efficient and alternative fuel (E-85) vehicles. The Chevrolet Silverado and GMC Sierra full-size pickup trucks - fuel efficiency leaders in their class - pushed GM's large pickup segment sales up 10 percent in total and 14 percent retail compared with May 2006. Divisions with retail sales increases for the month included Saturn (up 59%), GMC (up 18%) and Pontiac (up 8%). Additionally, Chevrolet was again the sales leader in the industry (up 5%). "Our May results were extremely positive as we saw strong total and retail sales increases. Our significant market share gains in full-size trucks and crossovers validates the decision we made to invest in industry-leading fuel economy in these important segments," said Mark LaNeve, vice president, GM North American Sales, Service and Marketing. "We are particularly pleased with the Chevrolet Silverado and GMC Sierra pickups, which pushed our full-size truck sales up more than 10 percent for the month. As with many of our vehicles, these great all-new trucks offer what the customer is looking for - best-in-class fuel economy, terrific performance and tremendous value. And our newest entry to the crossover segment, the Buick Enclave, is performing ahead of our expectations. Dealers are selling them as soon as they arrive from the plant. Our mid-size crossover segment performance, including the GMC Acadia and Saturn OUTLOOK, continues to grow at a blistering pace." The product renaissance at Saturn continued to accelerate with total sales increasing almost 69 percent compared with a year ago, highlighting the tremendous public acceptance of the new lineup of Saturn vehicles including SKY, AURA and AURA Hybrid, OUTLOOK, VUE and VUE Hybrid. Saturn's ION small car is soon to be replaced with the popular ASTRA. Saturn is the fastest growing brand in the industry this year. Chevrolet Aveo, Cobalt, Malibu, Impala, HHR, Silverado, Suburban, and Avalanche; Pontiac G6 and Solstice; Saturn SKY and VUE; Saab 9-3, GMC Sierra and Yukon XL; Buick Lucerne; Cadillac SRX, Escalade ESV and Escalade EXT; and HUMMER H3 all had May retail sales increases compared with a year ago. Pontiac G5, Saturn AURA and OUTLOOK, GMC Acadia and the Buick Enclave are newly offered products and continue to contribute retail sales momentum. The GMC Acadia, Saturn OUTLOOK and Buick Enclave had retail sales of more than 12,800 vehicles, pushing a significant retail increase in GM's mid-crossover segment. GM's total sales of more than 16,600 vehicles in this segment pushed monthly performance up more than 211 percent, compared with the same month last year. "We're seeing positive results, including increased residual values for our products, as a result of staying aligned and disciplined to our North American turnaround and market growth plans. For customers, this means providing industry-leading products in terms of design, segment fuel economy, warranty coverage and performance," LaNeve added. "This translates to a beneficial cost of ownership experience. With new products such as the Cadillac CTS and Chevrolet Malibu coming to dealer showrooms later this year, we expect to build on this customer enthusiasm." Certified Used Vehicles May 2007 sales for all certified GM brands, including GM Certified Used Vehicles, Cadillac Certified Pre-Owned Vehicles, Saturn Certified Pre-Owned Vehicles, Saab Certified Pre-Owned Vehicles, and HUMMER Certified Pre-Owned Vehicles, were 45,892 units, up 3% from last May. Total year-to-date certified GM sales are 227,365 units, up 3% from the same period last year. GM Certified Used Vehicles, the industry's top-selling manufacturer-certified used brand, posted 40,306 sales, up nearly 5% from last May. Year-to-date sales for GM Certified Used Vehicles are 199,715 units, up 4% from the same period in 2006. Cadillac Certified Pre-Owned Vehicles posted May sales of 3,102 units, down 6% from last May. Saturn Certified Pre-Owned Vehicles sold 1,603 units in May, down 13%. Saab Certified Pre-Owned Vehicles sold 797 units, comparable to last May, and HUMMER Certified Pre-Owned Vehicles sold 84 units, down 6%. "GM Certified Used Vehicles, the industry's top-selling certified brand, had another category-leading performance with sales of 40,306 units, up nearly 5%," said LaNeve. "GM Certified also set a new all-time high with year-to-date sales through May of 199,715 units, up 4% from its 2006 segment record performance for the same period." Unchanged at 1.145 Million Vehicles, 2007 Third-Quarter Production Forecast Set at 1.075 Million Vehicles In May, GM North America produced 401,000 vehicles: 139,000 cars and 262,000 trucks. This is down 25,000 units or 6% compared to May 2006 when the region produced 425,000 vehicles: 158,000 cars and 267,000 trucks. The region's 2007 second-quarter production forecast is unchanged at 1.145 million vehicles: 403,000 cars and 742,000 trucks. Additionally, the region's initial 2007 third-quarter production forecast is set at 1.075 million vehicles: 377,000 cars and 698,000 trucks, up 2% from third-quarter 2006 actuals. GM also announced revised 2007 second-quarter and initial 2007 third-quarter production forecast for its international regions. GM Europe GM Europe's 2007 second-quarter production forecast is revised at 468,000 vehicles, down 5,000 units from last month's guidance. In the second-quarter of 2006 the region built 495,000 vehicles. The region's initial 2007 third-quarter production forecast is set at 389,000 vehicles. In the third-quarter of 2006 the region built 374,000 vehicles. GM Asia Pacific GM Asia Pacific's 2007 second-quarter production forecast remains unchanged at 568,000 vehicles. In the second-quarter of 2006 the region built 482,000 vehicles. The region's initial 2007 third- quarter production forecast is set at 524,000 vehicles. In the third-quarter of 2006 the region built 433,000 vehicles. GM Latin America GM Latin America, Africa and the Middle East - The region's 2007 second-quarter production forecast is unchanged at 233,000 vehicles. In the second-quarter of 2006 the region built 206,000 vehicles. The region's initial 2007 third-quarter production forecast is set at 258,000 vehicles. In the third-quarter of 2006 the region built 215,000 vehicles. About General Motors General Motors Corp. (NYSE: GM), the world's largest automaker in 2006, has been the annual global industry sales leader for 76 years. Founded in 1908, GM today employs about 280,000 people around the world. With global headquarters in Detroit, GM manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. More information on GM can be found at www.gm.com. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GRAFTECH INT'L: March 31 Balance Sheet Upside-down by $90 Million ----------------------------------------------------------------- Graftech International Ltd.'s balance sheet at March 31, 2007, showed $771.6 million in total assets and $861.6 million in total liabilities, resulting in a $90 million total stockholders' deficit. GrafTech International Ltd. reported net income of $17.9 million for the first quarter ended March 31, 2007, compared with a net loss of $4.6 million for the same period ended March 31, 2006. Net sales increased to $228 million for the first quarter ended March 31, 2007, versus $174 million in the first quarter of 2006. Gross profit increased 54 percent to $76 million, as compared to $49 million in the first quarter of 2006. Net cash provided by operating activities improved $51 million to $18 million, versus a use of $33 million in the first quarter of 2006. Operating net cash for the quarter included disbursements of a $7 million call premium related to the $135 million redemption of Senior Notes, $5 million to complete the final antitrust obligation, and $4 million in restructuring payments. Operating net cash for the prior year included disbursements of $5 million in antitrust and restructuring payments. Net debt was reduced by $12 million to $497 million. Craig Shular, chief executive officer of GrafTech, commented, "The company is beginning to gain traction on a number of fronts as the impact of several of our initiatives is beginning to flow through to our results. Performance is improving due to higher product pricing, and benefits realized from our previously announced productivity projects, overhead reduction initiatives and tax planning efforts." Total operating income from the segments increased $40 million to $51 million, as compared to $11 million in the first quarter of 2006. Total operating income from the segments as a percent of sales improved 16.0 percentage points to 22.3 percent, versus 6.3 percent in the 2006 first quarter. First quarter 2007 operating income margin benefited by approximately two percentage points as a result of a carryover of lower cost raw materials from the prior year. Operating income margin for the first quarter 2006 included an unfavorable impact of five percentage points related to asset impairment charges in the quarter. Selling and administrative and research and development expenses were $25 million in the 2007 first quarter, as compared to $27 million in the 2006 first quarter. The decrease was a result of realized benefits from previously announced productivity initiatives. Interest expense was $12 million in the 2007 first quarter, flat as compared to the same period in 2006. During the first quarter of 2007, GrafTech recorded a net restructuring charge of $1 million as it continues to execute its previously identified productivity and cost savings program. Other (income) expense, net, was an expense of $11 million in the first quarter 2007, as compared to approximately zero in the first quarter 2006. The increase is largely due to a charge of $8 million related to the call premium and fees associated with the redemption of $135 million of our Senior Notes in the first quarter 2007. Mr. Shular commented, "We generated a $51 million improvement in operating cash flow, enabling us to complete the quarter with net debt below $500 million. Our team remains focused on its stated goal of maximizing cash flow in order to build shareholder value. We recently announced a third call of our Senior Notes, our most expensive debt, for an additional $50 million to be retired later this month. This brings our total year-to-date Senior Note redemptions to $185 million. Following this third call, the amount outstanding will be reduced to $250 million. Recall, that at their peak, the outstanding Notes totaled $550 million." Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2094 About GrafTech Based in Parma, Ohio, GrafTech International Ltd. (NYSE: GTI) -- http://www.graftechaet.com/ -- manufactures and provides high quality synthetic and natural graphite and carbon based products and technical and research and development services, with customers in 80 countries engaged in the manufacture of steel, automotive products and electronics. The company manufactures graphite electrodes, products essential to the production of electric arc furnace steel. The company also manufactures thermal management, fuel cell and other specialty graphite and carbon products for, and provide services to, the electronics, power generation, semiconductor, transportation, petrochemical and other metals markets. GrafTech operates 11 state of the art manufacturing facilities strategically located on four continents. * * * As reported in the Troubled Company Reporter on May 14, 2007, Standard & Poor's Ratings Services raised its corporate credit rating on GrafTech International Ltd. to 'B+' from 'B'. In addition, S&P raised the rating on the company's $215 million senior secured revolving credit facility to 'BB-' from 'B+' and affirmed the '1' recovery rating on the facility. Also, Standard & Poor's raised its rating on Graftech's convertible notes to 'B-' from 'CCC+'. Lastly, S&P affirmed the 'B-' rating on GrafTech's $550 million senior secured notes and assigned them a '5' recovery rating. The outlook is stable. GREAT PANTHER: Appoints Raakel Iskanius as Chief Financial Officer ------------------------------------------------------------------ Great Panther Resources Limited appointed Ms. Raakel Iskanius, CA, to the position of Chief Financial Officer. "Raakel is a senior accounting professional with 17 years of experience in public practice as well as private industry. She has worked with both public and non-public companies, in both Canada and the USA." said Mr. Kaare Foy, the company's Executive Chairman and former CFO. "Her background includes experience with natural gas distribution, facilities & real estate management, and engineering services". Most recently, Ms. Iskanius was the senior financial and regulatory reporting manager at Terasen Gas Inc., a SEDAR filing company with revenues of $1.5 billion-plus. Her responsibilities included managing the financial accounting and regulatory reporting staff of twenty-eight, being responsible for: the preparation of the utility's financial statements, Sarbanes-Oxley control documentation, and timely filing of the company's regulatory reports. Raakel articled at KPMG while obtaining her Chartered Accountant designation in 1999. In addition to her CA designation, Raakel obtained her Certified General Accountants designation in 1995. "Having only ninety staff at the beginning of last year to having almost five hundred currently, and having transformed Great Panther from an exploration company into a silver producer with five consecutive quarterly production records, the Company now demands senior financial managers of Raakel's calibre. We are fortunate to have secured somebody of her experience and track record", Mr. Foy said today. About Great Panther Great Panther Resources Limited (TSX-V: GPR) through its acquisition of the Topia and Guanajuato Mines in Mexico has transformed from a company that was exclusively focused on mineral exploration to a company involved in the mining of precious and base metals. Going Concern Doubt As reported in the Troubled Company Reporter on July 13, 2006, KPMG LLP in Vancouver, Canada, raised substantial doubt about Great Panther Resources Limited's ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2005, and 2004. The auditors pointed to the Company's recurring losses and operating cash flow deficiencies. HEALTHSOUTH COR: Sells Birmingham Campus for $60 Million -------------------------------------------------------- HealthSouth Corporation signed an agreement to sell its corporate campus, located in Birmingham, Alabama. The campus consists of a 200,000 square-foot corporate headquarters building, the 85-acre corporate campus on which the headquarters sits, and a contiguous 19-acre tract of land that includes an incomplete 13-story building formerly called the "Digital Hospital." The transaction is under contract with an investment fund, sponsored by Trammell Crow Company, for a purchase price of at least $60 million and is expected to close by the end of July. The execution of this agreement is another step in HealthSouth's plan, announced in August 2006, to deleverage the company and reposition it for growth as a "pure play" post-acute care provider with a focus on inpatient rehabilitation. Proceeds from this transaction will be used to pay down a portion of the company's long-term debt. Details of the agreement were not disclosed. "We have always believed there was a lot of value in this property," said HealthSouth President and CEO Jay Grinney, who announced plans to sell the property shortly after joining HealthSouth in 2004. "But, we also knew this building was too big for a company of our size and required more resources than a healthcare company should be spending on its corporate headquarters." Under the terms of the agreement, HealthSouth will continue to lease space in the existing headquarters building for at least one year at which time it will either remain in the current building or re-locate to other appropriate office space in the Birmingham area. "We have engaged Carruthers Real Estate Company to assist us in evaluating our relocation alternatives and hope to find something in close proximity to our existing space," said Grinney. "This community has been very good to HealthSouth. We call this home and intend to continue to support this great city in the years to come." About HealthSouth HealthSouth Corporation (NYSE:HLS) -- http://www.healthsouth.com/ -- provides outpatient surgery, diagnostic imaging and rehabilitative healthcare services, operating facilities nationwide. At March 31, 2007, the company listed total assets of $3.2 billion, total liabilities of $4.8 billion, minority interest of $262.5 million, convertible perpetual preferred stock of $387.4 million, and total shareholders' deficit of $2.2 billion. HEMAGIN DIAGNOSTICS: March 31 Balance Sheet Upside-Down by$1.3MM ---------------------------------------------------------------- Hemagen Diagnostics Inc. recorded total assets of $4,306,656, total liabilities of $5,668,539, and total stockholders' deficit of $1,361,883 as of March 31, 2007. Accumulated deficit stood at $24,173,925 as of March 31, 2007, as compared with $23,503,209 as of Sept. 30, 2006. At March 31, 2007, Hemagen had about $149,000 of cash, and working capital of $2,212,007. At Sept. 30, 2006, the company had about $151,000 of cash and working capital of $2,927,000. Hemagen currently has a revolving line of credit with a bank for the purpose of financing working capital needs as required. The line of credit facility currently provides for borrowings up to $500,000, at an annual interest rate of the prime rate plus 3/4%. At March 31, 2007, the company had $250,000 borrowed on its line of credit facility. This line of credit facility expires on March 31, 2008. Hemagen believes that cash flow from operations, cash on hand at March 31, 2007, and its credit available under its line of credit facility will be sufficient to finance its operations and capital expenditures over the next 12 months. The net loss for the period was about $671,000 for the six months ended March 31, 2007 as compared to a net income of about $61,000 in the prior period. The decrease in the net income from the prior period is the direct result of lower sales and overall lower margins. Revenues for the six-month period ended March 31, 2007, decreased by about $785,000, or 20%, to about $3,083,000 from $3,868,000 for the same period ended March 31, 2006. This decrease is attributed to lower sales at the company's Brazilian subsidiary of about $128,000; decreased sales from the Raichem division of about $501,000; and a decrease of sales from the Analyst, Virgo and Endochek product lines of $150,000. About Hemagen Diagnostics Based in Columbia, Maryland, Hemagen Diagnostics Inc. (OTC: HMGN.OB) -- http://www.hemagen.com/-- is a biotechnology company that develops, manufactures, and markets more than 150 FDA-cleared proprietary medical diagnostic test kits. Hemagen has three different product lines. The Virgo(R) product line consists of diagnostic test kits that are used to aid in the diagnosis of certain autoimmune and infectious diseases. The Raichem(R) product line consists of a complete line of clinical chemistry reagents that are sold through Hemagen's wholly owned subsidiary, Reagents Applications Inc., as well as under various OEM arrangements. The Analyst(R) product line is an FDA-cleared clinical chemistry analyzer system, including consumables, that is used to measure important constituents in human and animal blood. HSI ASSET: Fitch Puts Low-B Ratings on $2.9 Million Certificates ---------------------------------------------------------------- HSI Asset Loan Obligation Trust 2007-1, which closed on May 31, 2007, is rated by Fitch Ratings as: -- $310.7 million classes I-A-1, I-IO, II-A-1 through II-A-13, II-IO, III-A-1 through III-A-7, III-IO, A-PO, and A-X (senior certificates) 'AAA'; -- $6.2 million class B-1 'AA'; -- $2.9 million class B-2 'A'; -- $1.6 million class B-3 'BBB'; -- $1.6 million class B-4 'BB'; -- $1.3 million class B-5 'B'. The 'AAA' rating on the senior certificates reflects the 4.50% total credit enhancement provided by the 1.90% class B-1, 0.90% class B-2, 0.50% class B-3, 0.50% privately offered class B-4, 0.40% privately offered class B-5, and 0.30% privately offered class B-6 (not rated by Fitch). The ratings reflect the quality of the loans, the integrity of the transaction's legal structure as well as the capabilities of American Home Mortgage Servicing, Inc., HSBC Mortgage Corporation (USA), and Wells Fargo Bank, N.A. as servicers and CitiMortgage, Inc. as Master servicer. Deutsche Bank National Trust Company is the trustee. As of the cut-off date, the collateral pool consists of 698 fixed- rate loans and totals $325,296,942. Approximately 33.82% are interest-only rate mortgage loans. The weighted average original loan-to-value ratio is 71.88%. The average outstanding principal balance is approximately $466,041, the weighted average coupon is 6.642% and the weighted average remaining term to maturity is 350 months. The weighted average credit score is 735. The loans are geographically concentrated in California (27.01%), New York (20.53%) and Florida (6.79%). For federal income tax purposes, multiple real estate mortgage investment conduit elections will be made with respect to the trust estate. HSI ASSET: Fitch Puts BB+ Rating on Class M-10 Certificates ----------------------------------------------------------- Fitch Ratings has taken rating action on these HSI Asset Securitization Corp. 2006-WMC1 mortgage pass-through certificates: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-2 affirmed at 'AA+'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-'; -- Class M-8, rated 'BBB+', placed on Rating Watch Negative; -- Class M-9, rated 'BBB', placed on Rating Watch Negative; -- Class M-10, rated 'BB+', placed on Rating Watch Negative. The collateral in the aforementioned transaction consists primarily of adjustable- and fixed-rate, interest-only, fully amortizing and balloon mortgage loans secured by first and second lien mortgages or deeds of trust on one- to four-family residential real properties. The originator of the collateral is WMC Mortgage Corp. All loans are serviced by Wells Fargo Bank, N.A., which has a sub-prime servicer rating of 'RPS1' provided by Fitch. The affirmations reflect a stable relationship between credit enhancement and expected losses, and affect approximately $691.68 million in outstanding certificates. The negative rating actions reflect deterioration in the relationship between CE and expected losses, and affect approximately $25.25 million in outstanding certificates. The negative rating actions are also a result of the overcollateralization amount being approximately $3.95 million, or approximately 30% off of its target amount of $13,045,707. The average monthly loss (after application of excess spread) over the past three months is approximately $1.27 million. The trust took a notably large loss in the distribution month of March, when approximately $4.8 million in losses were realized. A large portion of the early losses are a result of second lien charge- offs, which is attributed to the relatively high percentage of second lien loans from the transaction's issuance (approximately 10%). The transaction has a pool factor (current collateral balance as a percentage of initial collateral balance) of approximately 86.26%, and is 9-months seasoned. The current amount of collateral in the 60+ buckets (includes Foreclosure, Real Estate Owned, and Bankruptcy) is approximately 16.28%. The transaction has failed its delinquency trigger for four consecutive months. HOLLY MARINE: Court Okays Feeley & Associates as Special Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Northern District of Illinois gave Holly Marine Towing Inc permission to employ Feeley & Associates P.C., as its special counsel. As reported in the Troubled Company Reporter on April 20, 2007, the firm will perform extensive legal services that will be necessary to appeal a trial court's adverse rulings against the Debtor on certain breach of contract matters and with respect to the decertification of the Debtor as a women business enterprise. The Debtor told the Court that the firm represented the Debtor in specific litigation against the City of Illinois relating to its status as a disadvantaged business enterprise and women business enterprise. The firm charged the Debtor 40% of any recovery received from the City of Chicago and full reimbursement for all out-of-pocket disbursements and advances. Cynthia G. Feeley, Esq., at Feeley & Associates, assured the Court the her firm does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Ms. Feeley can be reached at: Cynthia G. Feeley, Esq. Feeley & Associates P.C. 161 North Clark Street, Suite 4700 Chicago, Illinois 60601 Tel: 312-541-1200 Fax: 312-541-1260 Headquartered in Chicago, Illinois, Holly Marine Towing Inc. provides towing and tugboat services. The company filed for Chapter 11 protection on Jan. 8, 2007 (Bankr. N.D. Il. Case No. 07-00266). Paul M. Bauch, Esq., at Bauch & Michaels LLC, represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in the Debtor's case. When the Debtor filed for protection from its creditors, it estimated assets and debts of more than $100 million. I2 TECHNOLOGIES: March 31 Balance Sheet Upside-down by $15.5 Mil. ----------------------------------------------------------------- I2 Technologies Inc.'s balance sheet at March 31, 2007, showed $185.2 million in total assets and $200.7 million in total liabilities, resulting in a $15.5 million total stockholders' deficit. I2 Technologies Inc. reported net income of $4.3 million for the first quarter ended March 31, 2007, compared with net income of 1.8 million for the same period in 2006. The company experienced negative cash flow from operations of $6.6 million in the first quarter of 2007. Included in the first quarter operating cash outflows were $12 million for the cash payment of employee bonuses earned in 2006, $5 million in non- operating and other non-recurring legal fees accrued in 2006 and other pre-paid expenses. "Our earnings and cash used in operations for the first quarter were generally in line with our internal expectations," stated i2 chief executive officer Michael McGrath. "While we were disappointed with our software solutions and maintenance revenue as well as our software solutions bookings in the quarter, we were pleased with the strong growth we achieved in our services business this quarter as compared to the first quarter of 2006. This growth highlights our continuing transition to a solutions- oriented provider. "Interest in our new-generation solutions continues to build and we are looking forward to showcasing customer successes, as well as hosting discussions and demonstrations that display the benefits of our new-generation solutions, at i2 Planet later this week," concluded McGrath. Total revenue for the first quarter was $65.6 million as compared to $64.0 million in the first quarter of 2006. Total revenue included contract revenue of $2.5 million and $33,000 in the first quarters of 2007 and 2006, respectively. Excluding the impact of contract revenue, operating revenue was $63.1 million as compared to $64.0 million in the first quarter of 2006, a decline of one percent period-to-period. I2 had total first quarter software solutions revenue, which includes core license revenue, recurring license revenue as well as fees received to develop the licensed functionality, of $13.4 million. This compares to $16.9 million of software solutions revenue in the first quarter of 2006, a decline of 21 percent period-to-period. Services revenue in the first quarter was $28.7 million, an increase of 20 percent from the $23.9 million of services revenue in the first quarter of 2006. Services revenue includes fees received from arrangements to customize or enhance previously purchased licensed software. Services revenue also includes reimbursable expenses. First quarter maintenance revenue was $21.0 million, a decrease of 9 percent from $23.2 million in the comparable prior year quarter. Total costs and expenses for the first quarter of 2007 were $60.1 million, a slight decrease compared to $60.4 million in the first quarter of 2006. Total costs and expenses in the first quarter of 2007 included $4.2 million in stock-based compensation expense, which includes $3.2 million in expense related to stock options and $1.0 million in expense related to restricted stock units. On March 31, 2007, i2's total cash (including restricted cash) was $108.5 million. Total debt at the end of the first quarter was $86.3 million, which represents the face value of the company's 5 percent senior convertible notes. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2097 About i2 Technologies Based in Dallas, Texas, I2 Technologies, Inc. (NASDAQ: ITWO) -- http://www.i2.com/-- provides supply chain management software solutions, including various supply chain software and service offerings. I2's flexible new-generation solutions are designed to synchronize demand and supply across ever-changing global business networks. INTERTAPE POLYMER: Chief Financial Officer A. Archibald Resigns --------------------------------------------------------------- Intertape Polymer Group Inc. disclosed that Andrew M. Archibald C.A. has advised the company of his intention to retire as chief financial officer as of June 30, 2007. Mr. Archibald joined Intertape Polymer Group Inc. in 1989 as its vice president finance. In May 1995 he became the company's chief financial officer and was also elected as vice president administration, a position he held through January 2005. "The board appreciates Andrew's years of service and dedication to the company," Michael Richards, the company's chairman of the board, commented. His contributions were instrumental in the growth and success of Intertape." Victor DiTommaso, currently the company's vice president, finance, will assume Mr. Archibald's responsibilities subsequent to June 30th. Headquartered in Quebec, Canada, Intertape Polymer Group (TSX: ITP) (NYSE: ITP) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper based packaging products and complementary packaging systems for industrial and retail use. Headquartered in Montreal, Quebec and Sarasota/Bradenton, Florida, the company employs about 2450 employees with operations in 18 locations, including 13 manufacturing facilities in North America, one in Europe and in Mexico. * * * Intertape Polymer Group, Inc. carries Standard & Poor's Ratings' 'B-' corporate credit and senior secured ratings. In addition, the company also carries Standard & Poor's 'CCC' senior subordinated rating. J. CREW GROUP: Earns $24.6 Million in Quarter Ended May 5 --------------------------------------------------------- J. Crew Group, Inc. reported financial results for the three months ended May 5, 2007 or first quarter fiscal 2007. Revenues increased 24% to $297.3 million. Store sales, Retail and Factory, increased 20% to $201.0 million, with comparable store sales increasing 13%. Realigning last year's calendar weeks to be consistent with the current year retail calendar weeks would result in a comparable store sales increase of 8% in the first quarter of fiscal 2007. Comparable store sales increased 12% in the first quarter of fiscal 2006. Direct sales ,Internet and Catalog, rose by 31% to $86.6 million. Direct sales increased 12% in the first quarter of fiscal 2006. Gross margin increased 110 basis points to 46.6% of revenues from 45.5% of revenues in the first quarter of fiscal 2006. Operating income increased 57% to $44.4 million, or 14.9% of revenues, compared to $28.3 million, or 11.8% of revenues, in the first quarter of fiscal 2006. Net income available to common stockholders was $24.6 million compared to $4.4 million in the first quarter of fiscal 2006. Adjusted net income for the first quarter of fiscal 2006 totaled $14.2 million, or $0.22 per diluted share. Millard Drexler, J. Crew's Chairman and CEO stated: "We are pleased with our first quarter results which reflect the hard work of our team in always doing our best to satisfy our customers. Our customers have come to expect from J. Crew the kind of quality, style and design that we work hard to consistently provide." About J. Crew Group Inc. New York City-based J. Crew Group Inc. (NYSE: JCG) -- http://www.jcrew.com/-- is a nationally recognized multi-channel retailer of women's and men's apparel, shoes and accessories. As of March 13, 2007, the company operates 178 retail stores, the J. Crew catalog business, jcrew.com, and 51 factory outlet stores. * * * As reported in the Troubled Company Reporter on March 27, 2007, Standard & Poor's Ratings Services revised its outlook on specialty apparel retailer J. Crew Group Inc. to positive from stable. The 'B+' corporate credit rating was affirmed. JP MORGAN: Fitch Puts Low-B Ratings on $2.5 Million Certificates ---------------------------------------------------------------- Fitch rates J.P. Morgan Alternative Loan Trust, mortgage pass- through certificates, series 2007-A2 as: Pool 1 Certificates: -- $1,132,763,100 classes 1-1-A1, 1-1-A2, 1-2-A1 through 1-2-A6 (Pool 1 Senior Certificates) and privately-offered class 1-P 'AAA'; -- $19,280,000 class 1-M-1, 'AA+'; -- $10,244,000 class 1-M-2, 'AA'; -- $6,627,000 class 1-M-3, 'AA'; -- $4,218,000 class 1-M-4, 'AA-'; -- $4,218,000 class 1-M-5, 'A+'; -- $4,218,000 class 1-M-6, 'A'; -- $6,026,000 class 1-B-1, 'A-'; -- $7,230,000 class 1-B-2, 'BBB+'. Aggregate Pool A Certificates: -- $199,671,200 classes 2-A-1, 2-A-1A, 2-A-1B, 2-A-1C, 2-A-1D, 2-A-1E, 2-A-1F, 2-A-1G, 2-A-1H, 2-A-1I, 2-A-1J, 2-A-2, 3-A-1, 3-A-1A, 3-A-1B, 3-A-1C, 3-A-1D, 3-A-1E, 3-A-1F, 3-A-1G, 3-A-1H, 3-A-1I, 3-A-1J, 3-A-2, 4-A-1, 4-A-1A, 4-A-1B, 4-A-1C, 4-A-1D, 4-A-1E, 4-A-1F, 4-A-1G, 4-A-1H, 4-A-1I, 4-A-1J, 4-A-2 (Aggregate Pool A Senior Certificates), A-R and privately-offered Class 2-P 'AAA'; -- $4,980,000 class C-B-1, 'AA'; -- $2,436,000 class C-B-2, 'A'; -- $1,377,000 class C-B-3, 'BBB'; -- $1,483,000 privately-offered class C-B-4, 'BB'; -- $1,059,000 privately-offered class C-B-5, 'B'. The 'AAA' rating on the Pool 1 Senior Certificates reflects the 6.00% subordination provided by the 1.60% class 1-M-1, the 0.85% class 1-M-2, the 0.55% class 1-M-3, the 0.35% class 1-M-4, the 0.35% class 1-M-5, the 0.35% class 1-M-6, the 0.50% class 1-B-1, the 0.60% class 1-B-2, and the 0.85% initial and target overcollateralization. All certificates have the benefit of monthly excess cashflow to absorb losses. The 'AAA' rating on the Aggregate Pool A Senior Certificates reflects the 5.75% subordination provided by the 2.35% class C-B- 1, the 1.15% class C-B-2, the 0.65% class C-B-3, the 0.70% privately-offered class C-B-4, the 0.50% privately-offered class C-B-5 and the 0.40% privately-offered class C-B-6. Class C-B-6 is not rated by Fitch. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the primary servicing capabilities of JPMorgan Chase Bank, N.A. (rated 'RPS1' by Fitch) and Countrywide Home Loans Servicing LP (rated 'RPS1') as well as the Master Servicing capabilities of Wells Fargo Bank, N.A. (rated 'RMS1'). This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Classes 2-A-1A, 2-A-1B, 2-A-1C, 2-A-1D, 2-A-1E, 2-A-1F, 2-A-1G, 2-A-1H, 2-A-1I, 2-A-1J, 3-A-1A, 3-A-1B, 3-A-1C, 3-A-1D, 3-A-1E, 3-A-1F, 3-A-1G, 3-A-1H, 3-A-1I, 3-A-1J, 4-A-1A, 4-A-1B, 4-A-1C, 4-A-1D, 4-A-1E, 4-A-1F, 4-A-1G, 4-A-1H, 4-A-1I, 4-A-1J are exchangeable certificates. All other certificates are regular certificates. On or before the Distribution Date in May 2009, holders of the REMIC Certificates may exchange all or part of each class of such REMIC Certificates for a proportionate interest in the Exchangeable Certificates in the related Exchangeable Combination. The holders of each class of Exchangeable Certificates in an Exchangeable Combination may also exchange all or part of such class for a proportionate interest in the class of related REMIC Certificates. This process may occur repeatedly up to and including the Distribution Date in May 2009. The classes of REMIC Certificates and of Exchangeable Certificates that are outstanding on any date and the outstanding principal balances of these classes will depend upon the aggregate distributions of principal made to such classes, as well as any exchanges that have occurred on or prior to such date. For the purposes of the calculation of the Class Principal Amount of any class of REMIC Certificates, to the extent that exchanges of REMIC Certificates for Exchangeable Certificates occur, the aggregate Class Principal Amount of the REMIC Certificates will be deemed to include the Class Principal Amount of the related Exchangeable Certificates issued in the exchange and the Class Principal Amount of such Exchangeable Certificates will be deemed to be zero. REMIC Certificates and the related Exchangeable Certificates in the related Exchangeable Combination may be exchanged only in the specified proportion that the original principal balances of such certificates bear to one another. Holders of Exchangeable Certificates will be the beneficial owners of an interest in the related REMIC Certificates and will receive a proportionate share, in the aggregate, of the distributions on those certificates. With respect to any Distribution Date, the aggregate amount of principal and interest distributable to the then outstanding Exchangeable Classes in an Exchangeable Combination, the related REMIC Certificates and all Exchangeable Classes in an Exchangeable Combination related to such class of REMIC Certificates, will be equal to the aggregate amount of principal and interest otherwise distributable to the related REMIC Certificates on such Distribution Date if no Exchangeable Certificates were then outstanding. The assets of the issuing entity consist of four pools: Pool 1, Pool 2, Pool 3 and Pool 4. The mortgage loans consists of adjustable-rate, fully amortizing and balloon, conventional mortgage loans secured by first liens on one- to four-family residential properties, substantially all of which hve original terms to maturity of approximately 30 ears. Pool 2, Pool 3 and Pool 4 are cross-collateralized and are referred to as the 'Aggregate Pool A'. Pool 1 consists of 3,559 mortgage loans. As of the cut-off date (May 1, 2007), the aggregate unpaid principal balance is $1,205,066,521 and the average principal balance is $338,596. The weighted average original loan-to-value ratio is approximately 76.22%. The weighted average mortgage rate is 7.050% and the weighted average FICO score is 709. Cash-out and rate/term refinance loans represent 27.31% and 16.72% of the mortgage pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (61.63%), Florida (14.47%) and Arizona (5.31%). All other states represent less than 5% of the outstanding balance of the mortgage pool. The Aggregate Pool A consists of 550 mortgage loans. As of the cut-off date (May 1, 2007), the aggregate unpaid principal balance is $211,854,389 and the average principal balance is $385,189. The weighted average original loan-to-value ratio (OLTV) is approximately 75.09%. The weighted average mortgage rate is 6.218% and the weighted average FICO score is 717. Cash-out and rate/term refinance loans represent 43.33% and 30.04% of the mortgage pool, respectively. The states that represent the largest geographic concentration of mortgaged properties are California (42.77%), Florida (8.71%) and Virginia (6.18%). All other states represent less than 5% of the outstanding balance of the mortgage pool. None of the mortgage loans are high cost loans as defined under any local, state or federal laws. U.S. Bank National Association will act as trustee. J.P. Morgan Acceptance Corporation I, a special purpose corporation, deposited the loans in the trust which issued the certificates. For federal income tax purposes, the trustee will elect to treat all or portion of the assets of the trust funds as comprising multiple real estate mortgage investment conduits. JP MORGAN: Fitch Puts Low B Ratings on $5 Million Certificates -------------------------------------------------------------- J.P. Morgan Mortgage Trust mortgage pass-through certificates, series 2007-S2, are rated by Fitch Ratings as: -- $1.2 billion classes 1-A-1 through 1-A-17, 2-A-1 through 2-A-7, 3-A-1 through 3-A-3, A-P, A-X, A-R, and the non-offered class P 'AAA', -- $20.5 million class B-1 'AA', -- $8.7 million class B-2 'A', -- $3.7 million class B-3 'BBB', -- $3.1 million non-offered class B-4 'BB', -- $1.9 million non-offered class B-5 'B' The 'AAA' rating on the senior classes reflects the 3.25% credit enhancement provided by the 1.65 % class B-1, the 0.70% class B-2, the 0.30% class B-3, the 0.25% non-offered class B-4, the 0.15% non-offered class B-5 and the 0.20% non-offered and non-rated class B-6 certificates. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, and the strength of the legal and financial structures. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. Classes 1-A-3, 1-A-12 through 1-A-14, 2-A-3, 2-A-6, and 2-A-7 are exchangeable certificates. Class 1-A-1, 1-A-2, 1-A-4 through 1-A-11, 1-A-15 through 1-A-17, 2-A-1, 2-A-2, 2-A-4, 2-A-5, 3-A-1 through 3-A-3, A-P, A-X, A-R, P, and B-1 through B-6 are regular certificates. The holder of the REMIC Certificates in any REMIC Combination may exchange all or part of each class of such REMIC Certificates for a proportionate interest in the related Exchangeable Certificates. The holder of each class of Exchangeable Certificates may also exchange all or part of such class for a proportionate interest in each such class of REMIC Certificates or other Exchangeable Certificates in the related REMIC Combination. The classes of REMIC Certificates and Exchangeable Certificates that are outstanding on any date and the outstanding principal balances of these classes will depend upon the aggregate distributions of principal made to such classes, as well as any exchanges that have occurred on or prior to such date. For the purposes of the definitions and the calculation of the Class Principal Amount of any class of REMIC Certificates, to the extent that exchanges of REMIC Certificates for Exchangeable Certificates occur, the aggregate Class Principal Amount of the REMIC Certificates will be deemed to include the Class Principal Amount of the related Exchangeable Certificates issued in the exchange and the Class Principal Amount of such Exchangeable Certificates will be deemed to be zero. REMIC Certificates in any REMIC Combination and the related Exchangeable Certificates may be exchanged only in the specified proportion that the original principal balances of such certificates bear to one another. Holders of Exchangeable Certificates will be the beneficial owners of an interest in the REMIC Certificates in the related REMIC Combination and will receive a proportionate share, in the aggregate, of the distributions on those certificates. With respect to any Distribution Date, the aggregate amount of principal and interest distributable to any Exchangeable Classes and the REMIC Certificates in the related REMIC Combination then outstanding on such Distribution Date will be equal to the aggregate amount of principal and interest otherwise distributable to all of the REMIC Certificates in the related REMIC Combination on such Distribution Date if no Exchangeable Certificates were then outstanding. The trust consists of 2,710 first-lien residential mortgage loans with stated maturity of not more than 30 years with an aggregate principal balance of $1,244,485,915 as of the cut-off date, May 1, 2007. The mortgage pool has a weighted average original loan-to- value ratio of 70.26% with a weighted average mortgage rate of 6.269%. The weighted-average FICO score of the loans is 740. The average loan balance is $459,219 and the loans are primarily concentrated in California (28.55%), Florida (9.03%), and New York (5.68%). None of the mortgage loans are 'high cost' loans as defined under any local, state or federal laws. Wells Fargo Bank National Association will serve as master servicer. U.S. Bank, National Association will serve as trustee. JPMorgan Chase Bank, N.A and certain other servicers that will individually service no more than 10% of the mortgage loan, will each act as servicers. J.P. Morgan Acceptance Corporation I, a special purpose corporation, deposited the loans in the trust which issued the certificates. For federal income tax purposes, the trustee will elect to treat all or portion of the assets of the trust funds as comprising multiple real estate mortgage investment conduits. JP MORGAN: Fitch Puts-Low B Ratings on $5.1-Million Certificates ---------------------------------------------------------------- J.P. Morgan Mortgage Trust mortgage pass-through certificates, series 2007-A4, are rated by Fitch Ratings as: -- $757.79 million class 1-A-1,1-A2, 2-A-1 through 2-A-4, 2-A-3M, 2-A-3S, 2-A-3L, 2-A-3F, 2-A-4,, 3-A-1 through 3-A-4, 3-A-4M, 3-A-4S, class P, and A-R 'AAA'; -- $13.78 million class B-1 'AA'; -- $5.51 million class B-2 'A'; -- $3.15 million class B-3 'BBB'; -- $3.15 million class B-4 'BB'; -- $1.97 million class B-5 'B'. The 'AAA' rating on the senior classes reflects the 3.75% credit enhancement provided by the 1.75 % class B-1, the 0.70% class B-2, the 0.40% class B-3, the 0.40% non-offered class B-4, the 0.25% non-offered class B-5, and the 0.25% non-offered and non-rated class B-6 certificates. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, and the strength of the legal and financial structures. This transaction contains certain classes designated as exchangeable certificates and others as regular certificates. The classes 2-A-3M, 2-A-3S, 2-A-3L, Class 2-A-3F, 3-A-1, 3-A-4M and 3- A-4S certificates are exchangeable certificates. The remainder of the classes are regular certificates. The holders of the REMIC certificates may exchange all or part of each class of such REMIC certificates for a proportionate interest in the exchangeable certificates in the related exchangeable combination. The holders of each class of exchangeable certificates in an exchangeable combination may also exchange all or part of such class for a proportionate interest in the class or classes of related REMIC certificates. This process may occur repeatedly. The classes of REMIC certificates and of exchangeable certificates that are outstanding on any date and the outstanding principal balances of these classes will depend upon the aggregate distributions of principal made to such classes, as well as any exchanges that have occurred on or prior to such date. The aggregate class principal amount of the REMIC Certificates will be deemed to include the class principal amount of the related exchangeable certificates issued in the exchange and the class principal amount of such exchangeable certificates will be deemed to be zero. REMIC certificates and the related exchangeable certificates in the related exchangeable combination may be exchanged only in the specified proportion that the original principal balances of such certificates bear to one another. Holders of exchangeable certificates will be the beneficial owners of an interest in the related class or classes of REMIC certificates and will receive a proportionate share, in the aggregate, of the distributions on those certificates. With respect to any distribution date, the aggregate amount of principal and interest distributable to the exchangeable classes in an exchangeable combination and the related REMIC certificates then outstanding on such distribution date will be equal to the aggregate amount of principal and interest otherwise distributable to the related REMIC certificates on such distribution date if no exchangeable certificates were then outstanding. The trust consists of mortgage loans with a total principal balance of approximately $$787,316,124. The mortgage loans consist of adjustable-rate, conventional, fully amortizing, first lien residential mortgage loans, substantially all of which have an original term to stated maturity of 30 years. The weighted average loan-to-value ratio at origination of the mortgage loans is approximately 70.29%, and no mortgage loan had a loan-to-value ratio at origination exceeding 100%. The weighted average credit score of the mortgage loans in the aggregate pool is expected to be approximately 744. None of the mortgage loans are "high cost" loans as defined under any local, state or federal laws. Wells Fargo Bank, NA (rated 'RMS1' by Fitch) will serve as master servicer. U.S. Bank National Association (rated 'AA-/F1+' by Fitch) will serve as trustee. JPMorgan Chase Bank, N.A. (rated 'RPS1' by Fitch) will service 78.56% of the mortgage loans. No other servicer will service more than 10% of the loans. J.P. Morgan Acceptance Corporation I, a special purpose corporation, deposited the loans in the trust which issued the certificates. For federal income tax purposes, the trustee will elect to treat all or portion of the assets of the trust funds as comprising multiple real estate mortgage investment conduits. KANDERSTEG INC: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Kandersteg, Inc. 4242 Carlisle Pike Suite 250 Camp Hill, PA 17011 Bankruptcy Case No.: 07-01682 Type of Business: The Debtor operates 12 stations in 8 states with a fleet of over 300 delivery trucks to provide package delivery services to DHL. See http://www.kandersteg.us/ Chapter 11 Petition Date: June 1, 2007 Court: Middle District of Pennsylvania (Harrisburg) Judge: Mary D. France Debtor's Counsel: Robert E Chernicoff, Esq. Cunningham and Chernicoff, P.C. 2320 North Second Street Harrisburg, PA 17110 Tel: (717) 238-6570 Fax: (717) 238-4809 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not have a list of its 20 largest unsecured creditors. KUSHNER-LOCKE: Can Continue Use of JP Morgan's Cash Collateral -------------------------------------------------------------- The U.S. Bankruptcy Court for the Central District of California approved Kushner-Locke Company and its debtor-affiliates to continue to use JP Morgan Chase Bank fka Chemical Bank's cash collateral from June 1, 2007 to Nov. 30, 2007. This is the Debtors' thirteenth cash collateral order. The Debtors' tells the Court that it will use the cash collateral in the ordinary course of their business to: a. service the library; b. generate new postpetition accounts receivables; c. collect existing accounts receivable; and d. review and analyze creditor claims. The Debtors explain that the continuance to use JP Morgan's cash collateral will provide the Debtors the funds needed to prepare a plan of reorganization and, ultimately, an exit from chapter 11 with a confirmed plan. As adequate protection, the Debtors granted JP Morgan security interest in all of their assets, including inventory, receivables, cash, deposit accounts, copyrights and other general intangibles and proceeds. Headquartered in Los Angeles, California, The Kushner-Locke Company is a low-budget movie production studio. The Company, along with its debtor-affiliates filed for chapter 11 protection on Nov. 21, 2001 (Bankr. C.D. Calif. Case No. 01-44828). Alan L. Braunstein, Esq, Christopher M. Condon, Esq., and Kristin M. McDonough, Esq., at Riemer & Braunstein, LLP, represent the Debtors in their restructuring efforts. Jager Smith, Esq., and Michael J. Fencer, Esq., at One Financial Center, represent the Official Committee of Unsecured Creditors. LASALLE COMMERCIAL: Fitch Puts Low-B Ratings on Five Cert. Classes ------------------------------------------------------------------ Fitch rates LaSalle Commercial Mortgage Securities, Inc., series 2007-MF5, commercial mortgage pass-through certificates: -- $427,242,000 class A 'AAA'; -- $488,277,330 class X 'AAA'; -- $9,155,000 class B 'AA'; -- $13,428,000 class C 'A'; -- $8,545,000 class D 'BBB+'; -- $3,052,000 class E 'BBB'; -- $4,882,000 class F 'BBB-'; -- $7,325,000 class G 'BB+'; -- $2,441,000 class H 'BB'; -- $1,831,000 class J 'BB-'; -- $1,831,000 class K 'B+'; -- $1,221,000 class L 'B'; -- $610,000 class M 'B-'; -- $6,714,330 class N 'NR'. All classes are privately placed pursuant to rule 144A of the Securities Act of 1933. The certificates represent beneficial ownership interest in the trust, primary assets of which are 390 fixed- and floating-rate loans having an aggregate principal balance of approximately $488,277,330 as of the cutoff date. LEAP WIRELESS: Cricket Prices $350MM Senior Notes Private Offering ------------------------------------------------------------------ Cricket Communications, Inc., Leap Wireless International, Inc.'s operating subsidiary, has priced a private placement of $350 million in aggregate principal amount of 9.375% unsecured senior notes due 2014, at an issue price of 106% of the principal amount of the notes. The notes will be guaranteed on a senior unsecured basis by Leap and by each of Leap's and Cricket's existing and future domestic subsidiaries that guarantees indebtedness of Leap, Cricket or any subsidiary guarantor. The closing of the sale of the notes, which is subject to customary conditions, is expected to occur on June 6, 2007. Net proceeds from the offering will be used for general corporate purposes, including the build-out of new markets. About Leap Wireless Based in San Diego, California, Leap Wireless International, Inc., (NASDAQ:LEAP) -- http://www.leapwireless.com/-- is a customer- focused company providing innovative mobile wireless services targeted to meet the needs of customers under-served by traditional communications companies. With the value of unlimited wireless services as the foundation of its business, Leap pioneered both the Cricket(R) and Jump(TM) Mobile services. Through a variety of low, flat rate, service plans, Cricket service offers customers a choice of unlimited anytime local voice minutes, unlimited anytime domestic long distance voice minutes, unlimited text, instant and picture messaging and additional value-added services over a high-quality, all-digital CDMA network. Designed for the urban youth market, Jump Mobile is a unique prepaid wireless service that offers customers free unlimited incoming calls from anywhere with outgoing calls at an affordable 10 cents per minute and free incoming and outgoing text messaging. Both Cricket and Jump Mobile services are offered without long-term commitments or credit checks. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services revised the outlook on San Diego, California-based wireless carrier Leap Wireless International and all related subsidiaries to positive from stable, and affirmed its ratings, including the 'B-' corporate credit rating. Total debt as of March 31, 2007, was approximately $2.3 billion on an operating lease-adjusted basis. LYONDELL CHEMICAL: Fitch to Rate $500 Million Notes at BB- ---------------------------------------------------------- Fitch Ratings expects to assign a 'BB-' rating to Lyondell Chemical Company's $500 million announced offering of senior unsecured notes due 2017. Proceeds from this offering are expected to fully repay the existing $500 million, 10.875% senior subordinated notes due 2009. Fitch has also affirmed Lyondell's other ratings as: -- Issuer Default Rating at 'BB-'; -- Senior secured credit facility and term loan at 'BB+'; -- Senior secured notes at 'BB+'; -- Senior unsecured notes at 'BB-'; -- Debentures at 'BB-'; Additionally, Fitch has affirmed and withdrawn its 'B' rating on Lyondell's senior subordinated notes. The Rating Outlook for Lyondell remains Positive. Approximately $5 billion of debt is affected by these actions. The affirmation of Lyondell's ratings and assignment of 'BB-' rating to the new senior unsecured notes are supported by the company's debt reduction efforts, lower average cost of borrowings and improved financial flexibility. Lyondell continues to benefit from multiple operational cash streams as well as cash from the recent Inorganics sale. Fitch expects debt reduction will accelerate in the near-term as the sale of its Inorganics business was completed in mid-May. Proceeds from the asset sale are expected to primarily fund the repayment of Millennium America Inc.'s remaining $373 million, 9.25% senior notes due 2008, Equistar Chemicals, LP's $300 million, 10.125% senior notes due 2008 and $300 million, 10.625% senior notes due 2011. Fitch also continues to expect Lyondell's debt reduction targets to be met during 2008 and high probability of additional debt repayment to occur thereafter. In addition, Lyondell's 'BB-' Issuer Default Rating incorporates the company's highly integrated businesses in refining, petrochemicals and performance products. Lyondell's size, liquidity and access to capital markets support the rating. The Positive Rating Outlook reflects continued relatively favorable business conditions for the markets Lyondell participates in, and the expectation that Lyondell and its subsidiaries will accelerate their debt reduction efforts in the next year. Fitch also expects that energy and raw material prices will continue to be volatile however average prices are expected to trend lower. Strong operations from petrochemical and refining operations are likely to offset more cyclical businesses within the portfolio. Lyondell holds leading global positions in propylene oxide and derivatives, 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, Tex. The company benefits from strong technology positions and high 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. For the latest three months ending March 31, 2007, Lyondell and its subsidiaries generated $2.37 billion of EBITDA on $23.3 billion in sales. M/I HOMES: Fitch Affirms BB Issuer Default Rating ------------------------------------------------- Fitch Ratings has affirmed M/I Homes, Inc. (NYSE:MHO): -- Issuer Default Rating 'BB'; -- Senior unsecured debt 'BB'; -- Unsecured bank credit facility 'BB'; -- Series A non-cumulative perpetual preferred stock 'B+'. Fitch's rating affirmation applies to approximately $478.7 million in senior unsecured debt. Fitch has also revised MHO's Rating Outlook to Negative from Stable. The Outlook revision to Negative for MHO reflects the more challenging outlook for homebuilders, the current and expected near term deterioration in certain credit metrics for the company, and pressures from credit tightening, which particularly affect the entry level buyer (a targeted customer at M/I Homes), and high cancellation rates, which add to speculative inventory totals. The Negative Outlook and ratings take into account MHO's capitalization and size and still relatively heavy (although diminishing) exposure to the economically sluggish Midwest (Columbus, Cincinnati, and Indianapolis). Although MHO has been and is currently following an aggressive strategy of paring back land purchases and is reducing debt, it is at risk of challenging its interest coverage covenant late this year (and/or in 2008). The housing sector is in the midst of a meaningful, multi-year downturn. MHO has been increasing its sales and marketing efforts, focusing on reducing speculative inventory (enlarged by unusually high cancellation rates), reducing its lot supply, reassessing its land positions, renegotiating option contracts and, where possible, reducing overhead and direct construction costs. During this current downturn MHO, like most builders, has leveraged the financial flexibility of land options, walking away from overpriced lots (forfeiting its deposits). These builders also have reported meaningful charges associated with write downs of land values. Fitch will be monitoring broad housing market trends as well as company-specific activity, such as land and development spending, general inventory levels, speculative inventory activity (including the impact of high cancellation rates on such activity), gross and net new order activity, and free cash flow trends. Historically, MHO's revenues have been internally generated as it has rarely utilized corporate acquisitions. During the past few years, MHO stepped up its growth as it channeled more capital into its non-Midwestern operations, especially Florida and greater Washington, D.C. Land purchases were $269 million in 2004 and $320 million in 2005. MHO sharply cut back on land purchases to $165 million in 2006 and is expected to spend significantly less in 2007. MHO, which was the 21st largest U.S. single-family homebuilder in 2006 as ranked by Builder Magazine, had demonstrated solid margin enhancement over recent years with homebuilding EBITDA margins increasing from 6.5% in 1997 to 12.8% in 2005, but slimming to 11.8% (excluding non-recurring real estate charges) in 2006 and 11.2% on a trailing 12 months basis from March 31, 2007. Although MHO benefited from strong economic conditions, a degree of margin enhancement is also attributed to broadened new product offerings and the maturing of key divisions in Florida and Metropolitan Washington D.C. In addition, margins benefited from purchasing, access to capital and other scale economies that have been captured by the large national homebuilders in relation to smaller builders. These economies, somewhat greater geographic diversification (than in the past), MHO's presale operating strategy and a return-on- capital focus provide the framework to soften the margin impact of declining market conditions in comparison to previous cycles. Up until just recently, acquisitions had not played a part in MHO's operating strategy, as management has preferred to focus on internal growth. However, in July 2005 MHO did acquire Shamrock Homes, a small privately held homebuilder in Lake County, Fla., that is adjacent to the greater Orlando market where MHO has been building since 1985. Any future acquisitions are likely to be relatively small, either bolt-on to existing operations or entry into new markets. MHO's inventory turns are moderately below average as compared to its public peers and had slimmed in recent years as the company has made a conscious effort to scale up the share of its communities which it develops (to the advantage of margins). At present, MHO develops about 80% of its communities from which it sells product. In the future, MHO is likely to be less focused on land development. MHO maintains an approximate 5.3-year supply of total lots controlled, based on trailing 12 months deliveries, and 4.7 years of owned land. Total lots controlled were 20,991 at March 31, 2007, 88.4% of which are owned, and the balance is controlled through options. Inventory/net debt stood at 2.3 times, providing a buffer against a further downturn in housing markets. Year-end homebuilding debt-to-capital rather consistently declined from 53.7% in 1997 to 15.6% in b2002. However, leverage rose to 27.9% in 2003, 37.1% in 2004, 44% in 2005 and 49.9% in 2006 (slightly below MHO's leverage target of 50% or less). The debt to capital ratio was down to 37.3% by the end of March 2007. Total adjusted homebuilding debt to adjusted capital was 42.8% as of March 31, 2007. FFO adjusted leverage was 5.3 times at the conclusion of the March quarter. MHO's off-balance sheet activities are principally lot options secured by deposits. Its 26 joint ventures and limited liability companies typically are unlevered with the exception of three LLCs. These JVs are typically limited liability companies that engage in land development activities for purpose of distributing developed lots to M/I Homes and its partners in the entities. MHO maintains a $650 million revolving credit agreement of which $203.9 million were available at the end of first quarter-2007. The credit facility, which matures in October 2010, includes up to $100 million in letters of credit, and has the ability to increase the loan capacity up to $1 billion. In June 2005, MHO sold $50 million of senior notes in a private placement. The notes were sold as an add-on to MHO's $150 million of 6.875% senior notes that were sold in March 2005. These notes are due April 2012. In March 2007, MHO issued $100 million of perpetual, non- cumulative preferred stock that is not callable until March 2012. MHO has in the past and may continue to opportunistically repurchase moderate amounts of its stock. MHO repurchased $17.9 million in stock during 2006. $6.7 million remains in MHO's repurchase authorization. MARIA DELGADO: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Maria Socorro Lopez Delgado P.O Box 4952, Suite 309 Caguas, PR 00726 Tel: (787) 586-0653 Bankruptcy Case No.: 07-02864 Chapter 11 Petition Date: May 25, 2007 Court: District of Puerto Rico (Old San Juan) Judge: Gerardo Carlo Altieri Debtor's Counsel: Jean Philip Gauthier Inesta, Esq. 1311 Ponce De Leon Avenue, Suite 601 San juan, PR 00907 Tel: (787) 725-6625 Fax: (787) 725-6624 Total Assets: $1,104,217 Total Debts: $749,858 The Debtor file did not file a list of her 20 largest unsecured creditors. MEDWAVE INC: Posts $753,003 Net Loss in Quarter Ended March 31 -------------------------------------------------------------- Medwave Inc. reported a net loss of $753,003 on net sales of $252,327 for the second quarter ended March 31, 2007, compared with a net loss of $1,103,231 on net sales of $522,109 for the same period ended March 31, 2006. The decrease in revenues was due to the discontinuance of certain product lines. The decrease in net loss is due to the overall decrease in total operating expenses. Cost of sales and production decreased to $275,000 for the current quarter compared to $393,400 for 2006. The majority of the decrease between the three-month periods ended March 31, 2007, and 2006 reflects a decrease in sales of various product lines. Research and development expenses decreased to $138,200 from $239,300 in 2006. The 2007 decrease primarily relates to a decrease in outside services and clinical consulting expenses, which were higher last year due to new product design expenses. Sales and Marketing decreased to $265,700 in the 2007 quarter from $520,800 in 2006, primarily due to a decrease in salaries due to the lay-off of sales personnel and reductions in advertising services. General and administrative expenses decreased to $356,300 in the current quarter from $526,100 in 2006 primarily due to a reduction in salaries due to the lay-off of administrative personnel. Interest income was $29,800 and $54,186 for the three months ended March 31, 2007, and 2006, respectively. At March 31, 2007, the company's balance sheet showed $3,572,843 in total assets, $704,716 in total liabilities, and $2,868,127 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2093 Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 22, 2007, Carlin, Charron & Rosen LLP, in Westborough, Mass., expressed substantial doubt about Medwave Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Sept. 30, 2006, and 2005. The auditing firm pointed to the company's recurring net losses and accumulated deficit of approximately $34,000,000 at Sept. 30, 2006. About Medwave Inc. Headquartered in Arden Hills, Minn., Medwave,Inc. (Nasdaq: MDWV) -- http://www.mdwv.com/-- develops, manufacturers and distributes sensor-based non-invasive blood pressure solutions. MERRILL LYNCH: Fitch Puts Low-B Ratings on $5.1Mil. Certificates ----------------------------------------------------------------- Fitch rates Merrill Lynch Alternative Note Asset Trust, Series 2007-AF1, residential mortgage pass-through certificates: -- $399.0 million classes 1AF-1 - 1AF-12, 2AF-1, 2AF-2, F-IO, F-PO, and A-R 'AAA' ('senior certificates'); -- $11.5 million class MF-1 'AA'; -- 5.6 million class MF-2 'A'; -- $4.1 million class MF-3 'BBB'; -- $2.8 million non-offered class BF-1 'BB'; -- $2.3 million non-offered class BF-2 'B'; The 'AAA' rating on the senior certificates reflects the 6.60% subordination provided by the 2.70% MF-1, the 1.30% class MF-2, the 0.95% class MF-3, the 0.65% non-offered class BF-1, the 0.55% non-offered class BF-2, and the 0.45% non-offered and non-rated class BF-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults, as well as bankruptcy, fraud, and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the capabilities of Wells Fargo Bank, N.A. as master servicer (rated 'RMS1' by Fitch). The mortgage pool consists of 1,409 recently originated, fixed -- rate, first lien, one -- to four-family, residential mortgage loans, a substantial majority of which have original terms to maturity of 15 or 30 years. As of the cut-off date (May 1, 2007), the pool had an aggregate principal balance of approximately $427,212,996.66. The average loan balance is $303,203, and the weighted average original loan-to-value ratio for the mortgage loans in the pool is approximately 73.44%. The weighted average FICO credit score for the pool is approximately 714. Cash-out and rate/term refinance loans represent 43.52% and 22.11% of the pool, respectively. Second and investor-occupied homes account for 3.97% and 9.93% of the pool, respectively. The states that represent the largest geographic concentration are California (16.91%), Massachusetts (15.35%), and Florida (9.59%). The loans were purchased by Merrill Lynch Mortgage Lending, Inc., which were subsequently sold to Merrill Lynch Mortgage Investors, Inc. Merrill Lynch Mortgage Investors, Inc. deposited the loans in the trust, which issued the certificates, representing undivided beneficial ownership in the trust. For federal income tax purposes, elections will be made to treat the trust as separate multiple real estate mortgage investment conduits. HSBC Bank USA, NationalAssociation, will act as trustee. MID OCEAN: Fitch Pares Ratings on $31.5 Million Certs. to C ----------------------------------------------------------- Fitch downgrades three classes and withdraws one class of notes issued by Mid Ocean CBO 2000-1, Ltd. These rating actions are effective immediately: -- $137,026,174 class A-1L notes downgraded to 'B-' from 'BB' And assigned a distressed recovery rating of 'DR2'; -- $16,500,000 class A-2 notes downgraded to 'C/DR4' from 'CCC/DR4'; -- $15,000,000 class A-2L notes downgraded to 'C/DR4' from 'CCC/DR4'; -- $12,500,000 class B-1 notes withdrawn 'WD' from 'C/DR6'. Mid Ocean is a collateralized debt obligation that closed Jan. 8, 2001 and is managed by Deerfield Capital Management, LLC. Mid Ocean exited its reinvestment period in January 2006 and currently has a portfolio composed of residential mortgage-backed securities (50.3%), asset-backed securities (22.5%), commercial mortgage- backed securities (21.4%), and CDOs (5.8%). Included in this review, Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward. In addition, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. At Fitch's last review in February 2006, Fitch considered approximately 19.7% of Mid Ocean's assets to be distressed. Due to a combination of additional collateral deterioration and the amortization of performing assets, Mid Ocean's portfolio now contains about 38.9% of assets that Fitch considers distressed, with significant principal losses expected on many of these assets. As a result, the class A and class B overcollateralization tests continue to fail, with levels of 98.7% and 90.7%, respectively, versus triggers of 105% and 101%, respectively as of the May 2, 2007 trustee report. However, these OC test results do not fully incorporate the expected losses on the portfolio and therefore may understate the severity of the undercollateralization. Due to the poor collateral performance and substantial interest rate swap costs, the portfolio is not generating sufficient interest proceeds to fully cover the interest obligations on Mid Ocean's liabilities. Principal proceeds are currently being utilized to satisfy interest payments on the class A-2 & class A-2L notes. Although this principal diversion has been occurring sporadically and in relatively small amounts since October 2005, over $324,000 of principal was used for this purpose at the last payment date in April 2007. Fitch expects significant principal diversions to continue in the future, further reducing the amount of principal coverage for the notes. Fitch projects that the expected losses within the portfolio and the continued use of principal proceeds to pay interest will likely lead to some principal impairment for the class A-1L notes, and total principal losses on the class A-2, A-2L, and B-1 notes. The class A-2 and A-2L notes should continue to receive interest payments for the immediate future. The class B-1 notes have not received any payments since January 2005, and are not expected to receive any future payments. The ratings of the class A-1L, A-2, and A-2L notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. MORGAN STANLEY: Fitch Holds C Rating on $406,100 Class H Loan ------------------------------------------------------------- Fitch Ratings has affirmed Morgan Stanley series 1997-XL1: -- $44.3 million class A-3 at 'AAA'; -- $22.6 million class B at 'AAA'; -- $22.6 million class C at 'AAA'; -- $45.3 million class D at 'AAA'; -- $45.3 million class E at 'AAA'; -- $41.5 million class F at 'AA'; -- Interest Only class X at 'AAA'. -- $26.4 million class G remains at 'CCC/DR2'; -- $406,100 class H remains at 'C DR6'. Classes A-1 and A-2 have been paid in full. The Fashion Mall of Indianapolis loan was repaid in December 2006, reducing the balance of the transaction to $248.5 million, a decline of 67.1% since issuance. The collateral now consists of two fully defeased loans ( 81.6% ) and the loan on The Intercontinental Hotel in Dallas, Tex., (18.4%). The Intercontinental Hotel, while performing below expectations at issuance, has continued to show improved performance year over year for the past three years. Servicer reported average occupancy at year-end 2006 was 65.4% as compared to 57.1% in 2005 and 49.3% in 2004. Based on YE 2006 Fitch stressed net cash flow, the debt service coverage ratio for the property was 1.37 times as compared to 1.65x at issuance. Fitch anticipates the hotel will continue to improve, but the loan is still considered below investment grade. Interest shortfalls of $795.1 thousand have been incurred by Class H due to the disposition of two real estate owned properties. They are not expected to be recovered. MORGUARD REAL: DBRS Confirms Issuer Rating at BB (high) ------------------------------------------------------- Dominion Bond Rating Service has confirmed the Issuer Rating of Morguard Real Estate Investment Trust at BB (high) with a Stable trend as the Trust continues to rebalance its portfolio composition with the sale of the Trust's industrial properties and a focus on acquiring high-quality assets. In fourth quarter 2006, the Trust acquired, in partnership with a major Canadian pension fund, a Class A office portfolio located in downtown Ottawa for $210 million. The three office properties comprising 600,000 square feet are currently 99% occupied with 76% leased to government tenants under long-term leases. Going forward, DBRS expects this to enhance Morguard's cash flow stability and portfolio metrics. These are the current rating category takes into consideration: 1. Morguard's credit metrics remain reasonable with a debt-to- gross-book-value ratio of 54% as at first quater 2007 and an EBITDA coverage of 2.23 times for the 12 months ended March 31, 2007. While Morguard's interest coverage has mainly benefited from the elimination of approximately $3.2 million in interest expense associated with the convertible debenture redemption, this metric remains at the lower end of the range compared to other DBRS-rated REITs with similar credit profiles. In 2007, DBRS expects Morguard's debt levels to remain near current levels with no meaningful financing or planned acquisitions in the near term. 2. The Trust has exposure to the individual performance of five enclosed shopping centres, which collectively represent 32% of the total leasable area. 3. Morguard is vulnerable to the potential closures of The Bay, Zellers and Sears department stores as these tenants are key anchors at a majority of the Trust's enclosed shopping centres. Compared with larger regional malls located in primary markets, DBRS believes that Morguard's mid-market shopping centres in the size range of 200 thousand to 500 thousand square feet are more susceptible to a loss of one of these anchors and could have a difficult time re- configuring or re-leasing the space to replacement tenants. This could also have a significant impact on ancillary tenants, resulting in a much broader impact on Morguard's cash flow levels than would be suggested by the 7.2% of total basic revenue these tenants currently represent on a combined basis. Despite those concerns, DBRS expects Morguard to continue to perform reasonably well throughout 2007, and the rating continues to be supported by the following factors, which are the basis of the confirmation: 1. Morguard's portfolio is underpinned by a stable retail portfolio that comprises community/neighbourhood shopping centres and enclosed shopping centres, including two large regional shopping centres. 2. Morguard's portfolio is diversified by asset class with the retail segment contributing 67% of net operating income followed by office and industrial. 3. Morguard's portfolio metrics remain stable with consistent occupancy levels in the mid- to low-90% range across each asset segment. In addition, the Trust experienced good same-portfolio net operating income growth in its office portfolio, supported by strong leasing conditions in Western Canada. In 2007, Morguard will likely only achieve modest growth in cash flow, mainly from full-year cash flow from recent acquisitions. Underlying support to cash flow stability will likely be provided by a reasonable lease profile and good operating conditions. MTI TECHNOLOGY: Nasdaq Delists Securities Effective June 1 ---------------------------------------------------------- MTI Technology Corporation has received notification that the NASDAQ Listing Qualifications Panel has determined to delist the company's securities, effective June 1, 2007. This delisting is a result of the company's failure to meet the minimum stockholders' equity requirement for continued listing. The company has been advised that its securities are immediately eligible for quotation on the Pink Sheets, an electronic quotation service for securities traded over-the-counter, effective with the open of business on June 1, 2007. The company's common stock may, in the future, also be quoted on the Over-the-Counter Bulletin Board maintained by the NASD, provided that a market maker in the common stock files the appropriate application with, and such application is cleared by, the NASD. The company anticipates disclosing further trading venue information for its common stock once such information becomes available. Headquartered in New York City, -- http://www.pinksheets.com-- Pink Sheets LLC provides broker-dealers, issuers and investors with electronic and print products and information services designed to improve the transparency of the Over-the-Counter markets. The products are designed to increase the efficiency of OTC markets, leading to greater liquidity and investor interest in OTC securities. Pink Sheets centralized information network is a source of competitive market maker quotations, historical prices and corporate information about OTC issues and issuers. Pink Sheets is neither an SEC-Registered Stock Exchange nor a NASD Broker/Dealer. Pink Sheets LLC is a privately owned company. The OTC Bulletin Board -- http://www.otcbb.com/-- is a regulated quotation service that displays real-time quotes, last-sale prices, and volume information in OTC equity securities. An OTC equity security generally is any equity that is not listed or traded on NASDAQ or a national securities exchange. OTCBB securities include national, regional, and foreign equity issues, warrants, units, ADRs, and Direct Participation Programs (DPPs). About MTI Technology MTI Technology Corporation (Nasdaq: MTIC) -- http://www.mti.com/- - is a multi-national provider of professional services and comprehensive data storage solutions for mid to large-size organizations. As a strategic partner of EMC (NYSE:EMC), MTI offers the best data storage, protection and management solutions available. MTI currently serves more than 3,000 customers throughout North America and Europe. MTI Technology's balance sheet at Dec. 31, 2006, showed total assets of $78,134,000 and total liabilities of $85,559,000 resulting to a total stockholders' deficit of $7,425,000. NARROWSTEP INC: Losses Spurs Auditor's Going Concern Opinion ------------------------------------------------------------ Rothstein, Kass & Company, P.C., of Roseland, N.J., expressed substantial doubt about Narrowstep, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Feb. 28, 2007. The auditing firm noted that the company had significant losses from operations, had an accumulated deficit. Rothstein also said that the company utilized a significant amount of cash from operations, which requires additional financing to fund future operations. The company posted a $7,061,474 net loss on $6,008,835 revenue for the year ended Feb. 28, 2007, as compared with a $4,289,777 net loss on $2,706,262 revenue in the prior year. For the year ended Feb. 28, 2007, the company's total operating expenses increased to $13,178,778 on $6,975,249 in the prior year and operating loss also increased to $7,169,943 from $4,268,987 in the prior year. Net cash used in operating activities increased to $4,477,842 for the year ended Feb. 28, 2007, from $2,694,008 in the prior year. The company had $1,363,285 in net cash provided by financing activities and $2,726,525 in net cash provided in investing activities. Net cash provided by financing activities decreased to $1,363,285 for the year ended Feb. 28, 2007, from $7,585,151 in the prior year. At Feb. 28, 2007, the company's balance sheet showed $3,586,478 total assets and $2,546,403 total liabilities, resulting in $1,040,075 stockholders' equity. The company also had strained liquidity in its balance sheet with $2,202,841 total current assets and $2,410,933 total current liabilities. A full-text copy of the company's 2006 annual report is available for free at http://researcharchives.com/t/s?207c/ About Narrowstep Inc Headquartered in London, England, Narrowstep, Inc. -- (OTCBB: NRWS) -- http://www.narrowstep.com/-- provides internet-based video content delivery. Narrowstep's product and service offerings enable customers to distribute channels of video-based content and provide related services over the internet. The Narrowstep system, TelVOS(TM), enables comprehensive delivery of video content and television-like programming to mobile, wireless, Internet, broadband and broadcast services. The Narrowstep system enables owners and users of video content to reach audiences by "narrowcasting" - targeting delivery of specific content to interested groups. Narrowstep provides services to clients in the United Kingdom, the United States, and various other countries throughout the world, including Germany, Sweden and the Netherlands. OUR LADY OF MERCY: Committee Hires Alvarez & Marsal as Fin. Advsr. ----------------------------------------------------------------- The Official Committee of Unsecured Creditors of the Our Lady of Mercy Medical Center obtained authority from the U.S. Bankruptcy Court for the Southern District of New York to employ Alvarez and Marsal Healthcare Industry Group LLC as their financial advisor. Alvarez and Marsal is expected to: a) review and evaluate the current and prospective financial and operational condition of the Debtors, including: 1) cash receipts and disbursement forecasts; 2) various plans of reorganization that may be considered or pursued by the Debtors; 3) appraisals of assets prepared by the Debtors; 4) assets and liabilities. b) assist the committee in evaluating DIP or other financings for the Debtors; c) assist the committee in analyzing and evaluating potential transactions or other plans and effort to sell assets, recapitalize or reorganize the Debtors; d) assist the committee and its counsel in evaluating and responding to various developments or motions during the course of the Debtors' chapter 11 cases including providing expert testimony; e) represent or assist the committee's counsel in representing the committee in negotiations with the Debtors and third parties; and f) provide other services requested by the committee in relation to the Debtors' cases. Ronald Winters, Managing Director Of Alvarez And Marsal Healthcare Industry Group LLC tells the court of the firm's professional hourly rates: Professional Hourly Rates ------------ ------------ Managing Directors $525 - $650 Directors $425 - $500 Associates $325 - $400 Analysts $200 - $300 The current hourly rate of Alvarez and Marsal are subject to a cumulative cap of $38,700 for the month of March 2007, plus $75,000 for each calendar month during the term of the engagement. Mr. Winters assures the court that the firm is "disinterested" as that term is defined in Section 101(14) of the bankruptcy code. Based in Bronx, New York, Our Lady of Mercy Medical Center -- http://www.olmhs.org/-- provides health care services. The medical center is a member of the Montefiore Health System and is a University affiliate of New York Medical College. The company and its debtor-affiliate, O.L.M. Parking Corporation, sought chapter 11 protection on March 8, 2007 (Bankr. S.D.N.Y. Case Nos. 07-10609 and 07-10610). Frank A. Oswald, Esq. at Togut, Segal & Segal LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed total assets of $91 million and total liabilities of $151 million. PATIENT PORTAL: Walden Certified Raises Going Concern Doubt ----------------------------------------------------------- Walden Certified Public Accountant, P.A., of Sunny Isles, Fla., expressed substantial doubt about Patient Portal Technologies, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses from operations and net capital deficit. The company posted a $401,408 net loss on $13,575 revenue for the year ended Dec. 31, 2006, as compared with a $130,653 net loss on zero revenue in the prior year. At Dec. 31, 2006, the company's balance sheet showed $1,102,680 total assets and $384,703 total liabilities, resulting to $717,977 stockholders' equity. The company also had $354,311 working capital deficit from $$30,392 total current assets and $384,702 total current liabilities. A full-text copy of the company's 2006 annual report is available for free at http://researcharchives.com/t/s?207d About Patient Portal Based in Palm Beach Gardens, Fla., Patient Portal Technologies, Inc. -- http://www.patientportal.com/-- provides integrated workflow solutions in the healthcare industry. The company's proprietary systems is developed in close coordination with hospital industry partners to provide multi-layer functionality across a wide spectrum of critical patient-centric workflows that result in immediate improvements in cost savings, patient outcomes, and revenue growth for hospitals. PETER LAFURIA: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Peter Raymond LaFuria, M.D. 17 River Lane Lake Charles, LA 70605 Bankruptcy Case No.: 07-20346 Chapter 11 Petition Date: May 25, 2007 Court: Western District of Louisiana (Lake Charles) Judge: Robert Summerhays Debtor's Counsel: Michael A. Crawford, Esq. Taylor, Porter, Brooks & Phillips, L.L.P. P.O. 2471 Baton Rouge, LA 70821 Tel: (225) 381-0201 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. PHH MORTGAGE: Fitch Puts B Rating on $240,829 Class B-5 Certs. -------------------------------------------------------------- PHH Mortgage Capital LLC mortgage pass-through certificates, series 2007-3, are rated by Fitch: -- $150,919,697 classes A-1, A-2, A-3, R-I, and R-II (publicly offered senior certificates) and A-4 (privately offered senior certificate) 'AAA'; -- $7,064,326 privately offered class B-1 'AA'; -- $1,043,594 privately offered class B-2 'A'; -- $561,935 publicly offered class B-3 'BBB'; -- $401,382 privately offered class B-4 'BB'; -- $240,829 privately offered class B-5 'B'. The 'AAA' rating on the senior certificates reflects the 6.00% subordination provided by the 4.40% privately offered class B-1, 0.65% privately offered class B-2, 0.35% publicly offered class B- 3, 0.25% privately offered class B-4, 0.15% privately offered class B-5, and 0.20% privately offered class B-6 (which is not rated by Fitch). Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings also reflect the quality of the underlying mortgage collateral, strength of the legal and financial structures, and the servicing capabilities of PHH Mortgage Corporation, which is rated 'RPS1-' by Fitch. The certificates represent ownership in a trust fund, which consists primarily of 243 one- to four-family conventional, fixed- rate mortgage loans secured by first liens on residential mortgage properties. As of the cut-off date (May 1, 2007), the mortgage pool has an aggregate principal balance of approximately $160,552,870, a weighted average original loan-to-value ratio of 70.23%, a weighted average coupon of 6.22%, a weighted average remaining term of 355 months, and an average balance of $660,711. The loans are primarily located in California (25.69%), New Jersey (10.61%) and New York (10.12%). William J. Mayer Securities, LLC acted as Agent for PHH Mortgage, structuring and underwriting this deal. Citibank N.A. will serve as Trustee. For federal income tax purposes, an election will be made to treat the trust fund as two real estate mortgage investment conduits. PRIMEDIA INC: Board Approves Special Bonuses to Executive Officers ------------------------------------------------------------------ The Compensation Committee of the Board of Directors of PRIMEDIA Inc. and the Nominating and Corporate Governance Committee of the Board of Directors and the Board of Directors of the Company, have approved the special bonuses to be paid by the company to the respective named executive officers. Dean B. Nelson, Chairman of the Board of Directors, President and Chief Executive Officer will receive a sale bonus of $1,000,000; Kevin J. Neary, Senior Vice President, Chief Financial Officer, will receive a sale bonus of $555,800 and a retention bonus of $250,000; and Steven Parr, Senior Vice President, President of PEM, will also receive a sale bonus of $1,845,300 and a retention bonus of $500,000. Each of the named executive officers will be entitled to the sale bonuses set forth above if such officer remains employed by the Company through closing of the Sale or if such officer's employment is terminated without cause prior to the closing of the Sale. The sale bonus payable to Mr. Nelson was awarded in connection with the proposed Sale and the transition of the company's operations and management to Atlanta, Georgia. The sale bonuses payable to Messrs. Neary and Parr were awarded in connection with the proposed Sale and were determined pursuant to a formula based on the sale price of $1,177,900,000. In addition, each of Messrs. Neary and Parr will be entitled to a separate retention bonus set forth above if they remain employed by the successor company to PEM for nine months following the closing of the Sale or if such officer's employment is terminated without cause prior to the closing of the Sale. About PRIMEDIA Inc. PRIMEDIA Inc. (NYSE: PRM) -- http://www.primedia.com/-- is the parent company of Consumer Source Inc., a publisher and distributor of free consumer guides in the U.S. with Apartment Guide, Auto Guide, and New Home Guide, distributing free consumer publications through its proprietary distribution network, DistribuTech, in more than 60,000 locations. Consumer Source owns and operates leading websites including ApartmentGuide.com, AutoGuide.com, NewHomeGuide.com; and America's largest online single unit rental property business, comprised of RentClicks.com, RentalHouses.com, HomeRentalAds.com, and Rentals.com. * * * Primedia Inc. carries Moody's Investor Service's 'B2' Senior Secured Debt and Corporate Family Ratings effective Sept. 30, 2005. QUEBECOR MEDIA: Stock Buyout Cues DBRS to Review Ratings -------------------------------------------------------- Dominion Bond Rating Service has placed the Secured Debt BB (low) rating and the Senior Notes & Senior Discount B (high) rating of Quebecor Media Inc. Under Review with Developing Implications after the company announced late yesterday that it has entered into an agreement with Osprey Media Income Fund to acquire all of the outstanding units of Osprey for $7.25 per unit in cash for a total of $355.5 million. Including Osprey's current net debt outstanding, this values Osprey at roughly $517 million or just below 10x EBITDA for the last 12 months. QMI is expected to fund this transaction, including the redemption of Osprey's current net debt of roughly $161.4 million, with new debt at the QMI holding-company level. The transaction has been approved by Osprey's board but remains subject to certain conditions. DBRS notes that should this be approved by unitholders, QMI and Osprey expect the transaction to close in the August 2007. DBRS notes that this acquisition is complementary to QMI's existing operating companies and would give it additional diversification and ownership of another stable cash-generating business. Osprey's stability comes from its portfolio of more than 50 daily and non-daily newspapers along with its magazine and insert operations. While DBRS expects leverage to increase on a consolidated basis, the Company has benefited from reduced leverage in recent years as a result of the solid performance of its wholly owned subsidiaries, Videotron Ltee and Sun Media Corporation. Furthermore, DBRS believes that this acquisition will not have an impact on the ratings of Videotron Ltee and Sun Media Corporation as Osprey is expected to, at least initially, be a separate, wholly owned operating subsidiary whose free cash flow should cover the additional debt at QMI. DBRS expects to focus its review on: 1. The business risk profile of QMI's operating companies including Osprey; 2. The financing of this transaction; 3. Leverage and free cash flow at QMI's operating companies and their ability to service the roughly $1.6 billion of total debt at QMI. 4. The company's final plans regarding where Osprey is to be held in its corporate structure, with the potential that Osprey could ultimately be amalgamated with QMI's Sun Media Corporation operations. RELIANT ENERGY: Fitch Rates Planned $1.25-Billion Notes at B+ ------------------------------------------------------------- Fitch Ratings expects to assign a 'B+/RR2' rating to Reliant Energy, Inc.'s planned $1.25 billion issuance of senior unsecured notes. Fitch currently assigns a 'B' Issuer Default Rating to Reliant with a Stable Rating Outlook. The 'RR2' Recovery Rating indicates superior recovery prospects, 71% to 90% of principal, in the event of a default. The expected 'B+' senior unsecured rating is based on Fitch's recently updated RR analysis which resulted in these rating actions: -- Issuer Default Rating affirmed at 'B'; -- Senior secured debt upgraded to 'BB/RR1' from 'BB-/RR2'; -- Senior subordinated convertible notes affirmed at 'B/RR4' and simultaneously withdrawn. The Rating Outlook is Stable. In the planned transactions, Reliant will use cash on hand of approximately $355 million and proceeds from the new debt to fund the tender offer for $1.1 billion of 9.25% and 9.5% senior secured notes and repay its $400 million secured term loan. In addition, Reliant plans to replace its existing revolving credit facility and pre-funded letter of credit facilities with smaller facilities of $500 million and $250 million, respectively. The upgrade of the senior secured debt was based on an updated RR analysis. Higher forward wholesale market prices have increased valuations for Reliant's merchant generation portfolio. Fitch's recent affirmation of Reliant's IDR reflects the uncertainty of operating cash flows generated by an unhedged merchant portfolio and a retail business facing increased competition. Reliant's challenge is to maintain stable retail margins with the expiration of price-to-beat in Texas. A substantial decline in retail margins and/or a decrease in customer retention could lead to a negative rating action. RESIDENTIAL ACCREDIT: Fitch Puts Low-B Ratings on $7.2MM Certs. -------------------------------------------------------------- Fitch rates Residential Accredit Loans, Inc. mortgage pass-through certificates, series 2007-QS7: -- $753,085,158 classes I-A-1 through I-A-9, II-A-1, II-A-2, I-A-P, I-A-V, R-I, R-II, R-III and P certificates (senior certificates) 'AAA'; -- $24,903,300 class M-1 'AA'; -- $8,434,600 class M-2 'A'; -- $6,426,300 class M-3 'BBB'. In addition, the following privately offered subordinate certificates are rated by Fitch as: -- $4,016,500 class B-1 'BB'; -- $3,213,100 class B-2 'B'; The $3,213,247 class B-3 is not rated by Fitch. The 'AAA' rating on the senior certificates reflects the 6.25% subordination provided by the 3.10% class M-1, the 1.05% class M- 2, the 0.80% class M-3, the privately offered 0.50% class B-1, the 0.40% privately offered class B-2 and the 0.40% privately offered class B-3. Fitch believes the above credit enhancement will be adequate to support mortgagor defaults as well as bankruptcy, fraud and special hazard losses in limited amounts. In addition, the ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s servicing capabilities (rated 'RMS1' by Fitch) as master servicer. As of the cut-off date, May 1, 2007, the mortgage pool consists of 3,375 conventional, fully amortizing, 30-year fixed-rate, mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of $803,292,207. The mortgage pool has a weighted average original loan-to-value ratio of 74.10%. The pool has a weighted average FICO score of 703, and approximately 32.66% and 15.42% of the mortgage loans possess FICO scores greater than or equal to 720 and less than 660, respectively. Equity refinance loans account for 34.62%, and second homes account for 2.32%. The average loan balance of the loans in the pool is $238,195. The three states that represent the largest portion of the loans in the pool are California (12.72%), Florida (10.79%) and Washington (6.51%). All of the mortgage loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers, except in the case of approximately 63.0% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings Financial, LLC, a wholly- owned subsidiary of Residential Funding, and approximately 0.1% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from GMAC Mortgage, LLC, an affiliate of Residential Funding. Except as described in the preceding sentence, no unaffiliated seller sold more than 8.7% of the mortgage loans to Residential Funding. Approximately 79.5% of the mortgage loans are being subserviced by Homecomings, a wholly- owned subsidiary of Residential Funding, approximately 4.4% of the mortgage loans are being subserviced by GMAC Mortgage, LLC, an affiliate of Residential Funding. None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans are loans that, under applicable state or local law in effect at the time of origination of the loan are referred to as (1) 'high-cost' or 'covered' loans or (2) any other similar designation if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees. The mortgage loans were originated under GMAC-RFC's Expanded Criteria Mortgage Program (Alt-A program). Alt-A program loans are often marked by one or more of the following attributes: a non-owner-occupied property; the absence of income verification; or a loan-to-value ratio or debt service/income ratio that is higher than other guidelines permit. In analyzing the collateral pool, Fitch adjusted its frequency of foreclosure and loss assumptions to account for the presence of these attributes. Deutsche Bank Trust Company Americas will serve as trustee. RALI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as two separate real estate mortgage investment conduit. RESIDENTIAL ASSET: S&P Lowers Ratings on Two Certificates --------------------------------------------------------- Fitch Ratings has taken rating actions on these Residential Asset Securities Corp. issues: 2004-KS1 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS1 Pools 2 & 3: -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A+'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS2 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS2 Pools 2 & 3: -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A+'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS3 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS3 Pools 2 & 3: -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A+'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS5 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS5 Pools 2 & 3: -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS6 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS6 2-3: -- Class A affirmed at 'AAA'; -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS8 Group 1: -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'AA'; -- Class M-I-2 affirmed at 'A'; -- Class M-I-3 affirmed at 'BBB'. 2004-KS8 Group 2: -- Class A affirmed at 'AAA'; -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A'; -- Class M-II-3 affirmed at 'BBB'. 2004-KS11: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class B affirmed at 'BB+'. 2004-KS12: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class B affirmed at 'BB+'. 2005-KS1: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'A+'; -- Class M-3 affirmed at 'A'; -- Class M-4 affirmed at 'A-'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class B affirmed at 'BB+'. 2005-KS2 POOLS 1 & 2: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'A+'; -- Class M-3 affirmed at 'A'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class B affirmed at 'BB+'. 2005-KS4: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'AA-'; -- Class M-3 affirmed at 'A'; -- Class M-4 affirmed at 'A'; -- Class M-5 affirmed at 'BBB+'; -- Class M-6 affirmed at 'BBB'; -- Class M-7 affirmed at 'BBB'; -- Class B-1 affirmed at 'BB+'. 2005-KS6: -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A'; -- Class M-8 affirmed at 'BBB+'; -- Class M-9 affirmed at 'BBB'; -- Class M-10, rated 'BBB'; placed on Rating Watch Negative -- Class M-11, rated 'BBB-'; placed on Rating Watch Negative -- Class B-1 downgraded to 'BB' from 'BB+'; -- Class B-2 downgraded to 'BB-' from 'BB'. 2005-KS7 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA+'; -- Class M-4 affirmed at 'AA'; -- Class M-5 affirmed at 'AA-'; -- Class M-6 affirmed at 'A+'; -- Class M-7 affirmed at 'A'; -- Class M-8 affirmed at 'A-'; -- Class M-9 affirmed at 'BBB+'; -- Class M-10 affirmed at 'BBB'. 2006-KS6 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA+'; -- Class M-3 affirmed at 'AA'; -- Class M-4 affirmed at 'AA-'; -- Class M-5 affirmed at 'A+'; -- Class M-6 affirmed at 'A'; -- Class M-7 affirmed at 'A-'; -- Class M-8 affirmed at 'BBB+'; -- Class M-9 affirmed at 'BBB'; -- Class B affirmed at 'BBB-'. 2006-KS7 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'. 2006-KS8 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'. 2006-KS9 -- Class A affirmed at 'AAA'; -- Class M-1S affirmed at 'AA+'; -- Class M-2S affirmed at 'AA'; -- Class M-3S affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'. The affirmations, affecting approximately $4.76 billion of the outstanding balances, are taken due to a satisfactory relationship of credit enhancement to expected losses. The downgrades, affecting approximately $19.49 million of the outstanding balances, are taken due to a deteriorating relationship between expected losses and credit enhancement. The affected series, 2005-KS6, has experienced monthly losses higher than the excess spread in four of the past six months. The overcollateralization amount has deteriorated to $1.99 million, which is below its target amount of $3.59 million. As of the April distribution date, the transactions listed above are seasoned from 6 (2006-KS9) to 39 (2004-KS1-Group 1 & Pools 2 & 3) months. The pool factors (current principal balance as a percentage of original) range approximately from 11% (2004-KS1 Pools 2 & 3) to 94% (2006-KS9). For all transactions, the underlying collateral consists of fully amortizing 15- to 30-year fixed- and adjustable-rate mortgages secured by first liens extended to subprime borrowers. The mortgage loans were acquired by various originators and are master serviced by GMAC-RFC, which is rated 'RMS1' by Fitch. RESIDENTIAL ASSET: Fitch Pares Ratings on Four Certificate Classes ------------------------------------------------------------------ Fitch Ratings has affirmed 38, downgraded eight, upgraded six and placed eight classes of mortgage pass-through certificates on Rating Watch Negative from the Residential Asset Securities Corp issues: Series 1999-RS1 GROUP 1 -- Class A affirmed at 'AAA'. Series 1999-RS1 GROUP 2 -- Class A affirmed at 'AAA'. Series 2001-KS1 GROUP 1 -- Class A affirmed at 'AAA'. Series 2001-KS1 GROUP 2 -- Class A affirmed at 'AAA'. Series 2001-KS2 GROUP 1 -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'A-'; -- Class M-I-2 affirmed at 'BBB-'; -- Class M-I-3 downgraded to 'C/DR3' from 'CC/DR4'. Series 2001-KS2 GROUP 2 -- Class A affirmed at 'AAA'; -- Class M-II-1, rated 'AAA' placed on Rating Watch Negative; -- Class M-II-2 downgraded to 'BB-' from 'A'; -- Class M-II-3 downgraded to 'B+' from 'BBB'. Series 2001-KS3 GROUP 1 -- Class A affirmed at 'AAA'; -- Class M-I-1 affirmed at 'A-'; -- Class M-I-2 affirmed at 'BB+'; -- Class M-I-3 downgraded to 'C/DR3' from 'CCC/DR3'. Series 2001-KS3 GROUP 2 -- Class A affirmed at 'AAA'; -- Class M-II-1 rated 'AA', placed on Rating Watch Negative; -- Class M-II-2 downgraded to 'BB' from 'BBB'; -- Class M-II-3 downgraded to 'B+' from 'BB'. Series 2002-KS8 -- Class A affirmed at 'AAA'. Series 2003-KS3 POOLS 1 & 2 -- Class A affirmed at 'AAA'; -- Class M-1 rated 'AA+', placed on Rating Watch Negative; -- Class M-2 affirmed at 'A'. Series 2003-KS5 GROUP 1 -- Class A affirmed at 'AAA'. Series 2003-KS5 GROUP 2 -- Class A affirmed at 'AAA'. Series 2003-KS6 POOLS 1 & 2 -- Class A affirmed at 'AAA'; -- Class M-1 rated 'AA+', placed on Rating Watch Negative; -- Class M-2 downgraded to 'A-' from 'A+'; -- Class M-3 affirmed at 'BBB+'. Series 2003-KS7 Group 1 -- Class A affirmed at 'AAA; -- Class M-I-1 affirmed at 'AA+'; -- Class M-I-2 affirmed at 'A+'; -- Class M-I-3 affirmed at 'BBB+'. Series 2003-KS7 POOLS 2&3 -- Class A affirmed at 'AAA'; -- Class M-II-1 rated 'AA+', placed on Rating Watch Negative; -- Class M-II-2 rated 'A+', placed on Rating Watch Negative. Series 2003-KS8 Group 1 -- Class A affirmed at 'AAA; -- Class M-I-1 affirmed at 'AA+'; -- Class M-I-2 affirmed at 'A+'; -- Class M-I-3 affirmed at 'BBB+'. Series 2003-KS8 POOLS 2&3 -- Class A affirmed at 'AAA'; -- Class M-II-1 rated 'AA+', placed on Rating Watch Negative; -- Class M-II-2 rated 'A+', placed on Rating Watch Negative. Series 2003-KS9 Group 1 -- Class A affirmed at 'AAA'. Series 2003-KS9 Group 2 -- Class A affirmed at 'AAA'. Series 2003-KS10 Group 1 -- Class A affirmed at 'AAA; -- Class M-I-1 upgraded to 'AA+' from 'AA'; -- Class M-I-2 upgraded to 'AA-' from 'A'; -- Class M-I-3 upgraded to 'A' from 'BBB'. Series 2003-KS10 Group 2 -- Class M-II-1 affirmed at 'AA'; -- Class M-II-2 affirmed at 'A+'; -- Class M-II-3 affirmed at 'BBB+'. Series 2003-KS11 Group 1 -- Class A affirmed at 'AAA'; -- Class M-I-1 upgraded to 'AA+' from 'AA'; -- Class M-I-2 upgraded to 'AA-' from 'A'; -- Class M-I-3 upgraded to 'A' from 'BBB'. Series 2003-KS11 Group 2 -- Class M-II-1 affirmed at 'AA+'; -- Class M-II-2 affirmed at 'A+'; -- Class M-II-3 downgraded to 'BBB' from 'BBB+'. The affirmations, affecting approximately $1.6 billion of outstanding certificates, are taken due to a satisfactory relationship of credit enhancement to expected losses. The upgrades affect approximately $110.77 million of outstanding certificates. The negative rating actions affect approximately $146.6 million of outstanding certificates. The upgrades are taken due to an improvement in the relationship between credit enhancement and expected losses. The transactions which contain upgraded classes are entirely composed of fully amortizing 15- to 30-year fixed rate loans. These transactions have significantly lower delinquencies and losses than initial projections. As a result, the overcollateralization is expected to remain on or close to target, which will allow CE to continue to grow relative to the remaining pool balance. The negative rating actions reflect deterioration in the relationship between CE and expected losses due to the adverse selection within the respective remaining pools. All of the pools with negative actions have pool factors less than 15%. In recent months, losses have generally exceeded excess spread, causing deterioration in the OC amount while serious delinquencies have generally continued to grow as a percentage of the remaining pool balances. As of the April distribution date, the transactions listed above are seasoned from 40 (2003-KS11 Group 1 & Group 2) to 99 (1999-KS1 Group 1 & Group 2) months. The pool factors (current principal balance as a percentage of original) range approximately from 5.2% (2001-KS3 Group 2) to 94% (2003-KS9 Group 1). For all transactions, the underlying collateral consists of fully amortizing 15- to 30-year fixed- and/or adjustable-rate mortgages secured by first liens extended to subprime borrowers. The mortgage loans were acquired by various originators and are master serviced by GMAC-RFC (rated 'RMS1' by Fitch). Fitch's Distressed Recovery ratings, introduced in April 2006 across all sectors of structured finance, are designed to estimate recoveries on a forward-looking basis while taking into account the time value of money. RESIDENTIAL FUNDING: Fitch Puts Low B Ratings on Two Cert. Classes ------------------------------------------------------------------ Fitch rates Residential Funding Mortgage Securities I, Inc.'s mortgage pass-through certificates, series 2007-S5 as: -- $503,850,589 classes A-1 through A-10, A-V, A-P and R senior certificates 'AAA'; -- $12,596,700 class M-1 'AA'; -- $3,149,000 class M-2 'A'; -- $2,099,400 class M-3 'BBB'; -- $1,049,700 privately offered class B-1 'BB'; -- $1,049,700 privately offered class B-2 'B'. Fitch did not rate the $1,049,736 privately offered class B-3 certificates. The 'AAA' rating on the senior certificates reflects the 4% subordination provided by the 2.40% class M-1, 0.60% class M-2, 0.40% class M-3, 0.20% privately offered class B-1, 0.20% privately offered class B-2 and 0.20% privately offered class B-3. The ratings reflect the quality of the mortgage collateral, strength of the legal and financial structures, and Residential Funding Corp.'s (RFC; rated 'RMS1' by Fitch) master servicing capabilities. This transaction contains certain classes designated as Exchangeable Certificates and Exchanged Certificates. -- Exchangeable Certificates: A-4, A-5 and A-6; -- Exchanged Certificates: A-9, A-10. Following the closing date, the holders of the Exchangeable Certificates will be entitled, for a fee, to exchange all of a portion of the Exchangeable Certificates in various combinations for the related class or classes of Exchanged Certificates and vice versa. Each exchange may be effected only in proportions that result in the principal and interest entitlements of the certificates being received being equal to the principal and interest entitlements of the certificates surrendered. On each distribution date when Exchanged Certificates are outstanding, those Exchanged Certificates will be entitled to a proportionate share of the principal distributions, if any, on each class of Exchangeable Certificates in the related allowable combination plus the pass-through rate on such Exchangeable Certificates. Exchangeable Certificates or Exchanged Certificates in any combination may be exchanged only in the proportion that the initial Certificate Principal Balances or Notional Amounts, as applicable, of such certificates bear to one another. Further, the portion of any Exchangeable Certificate or Exchanged Certificate that is required to execute or the result of a permissible exchange will be based on the proportion that the Certificate Principal Balance or Notional Amount, as applicable, bears to the initial Certificate Principal Balance or Notional Amount thereof. As of the cut-off date (May 1, 2007), the mortgage pool consists of 1,095 conventional, fully amortizing, 30-year fixed-rate mortgage loans secured by first liens on one- to four-family residential properties with an aggregate principal balance of approximately $524,844,826. The mortgage pool has a weighted average original loan-to-value ratio of 69.49%. The weighted- average FICO score of the loans in the pool is 736, and approximately 66.77% of the mortgage loans possess FICO scores greater than or equal to 720 and 6.67% of the mortgage loans posses FICO scores less than 660. Loans originated under a reduced loan documentation program account for approximately 45.00% of the pool, equity refinance loans account for 32.14%, and second homes account for 3.88%. The average loan balance of the loans in the pool is approximately $479,310. The three states that represent the largest portion of the loans in the pool are California (33.96%), Virginia (7.22%), and Florida (6.64%). None of the mortgage loans were subject to the Home Ownership and Equity Protection Act of 1994. Furthermore, none of the mortgage loans in the pool are mortgage loans that are referred to as "high-cost" or "covered' loans or any other similar designation under applicable state or local law in effect at the time of origination of such loan if the law imposes greater restrictions or additional legal liability for residential mortgage loans with high interest rates, points and/or fees. All of the mortgage loans were purchased by the depositor through its affiliate, Residential Funding, from unaffiliated sellers as described in this prospectus supplement and in the accompanying prospectus, except in the case of approximately 46.7% of the mortgage loans, which were purchased by the depositor through its affiliate, Residential Funding, from Homecomings. Approximately 12.8% of the mortgage loans were purchased by Residential Funding from Wachovia Mortgage Corp., an unaffiliated seller. Approximately 11.1% of the mortgage loans were purchased by Residential Funding from Sierra Pacific Mortgage Co. Inc., an unaffiliated seller. Except as described in the preceding sentence, no unaffiliated seller sold more than approximately 6.2% of the mortgage loans to Residential Funding. Approximately 72.5% and 9.5% of the mortgage loans are being subserviced by Homecomings and GMAC Mortgage, LLC, respectively, each an affiliate of Residential Funding and 12.8% of the mortgage loans are being subserviced by Wachovia Mortgage Corp., an unaffiliated servicer. Deutsche Bank Trust Company Americas will serve as trustee. RFMSI, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as a real estate mortgage investment conduit. RITE AID: FTC Gives Nod on Brook and Eckerd Acquisition ------------------------------------------------------- The Federal Trade Commission has accepted the proposed consent agreement relating to Rite Aid Corporation's acquisition of the Brooks and Eckerd drugstore chains from The Jean Coutu Group Inc. In addition, the Hart-Scott-Rodino Act waiting period has expired, permitting the parties to close the transaction. Rite Aid expects to complete the acquisition, which includes approximately 1,850 Brooks and Eckerd stores and six distribution centers, primarily located on the East Coast and in the Mid-Atlantic states. The terms of the consent order require Rite Aid to divest 23 stores located in the states of Connecticut, Maryland, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Vermont and Virginia within a short period following completion of the acquisition. Rite Aid has entered into definitive agreements to sell all of the stores required to be divested. Those sales have been approved by the FTC, and Rite Aid expects to complete the required divestitures within the prescribed timeframe contained in the consent order. The consent order will be subject to a 30-day public comment period, after which the FTC may propose modifications before the consent order is made final. However, Rite Aid is not required to delay closing of the acquisition for the comment period. Rite Aid will enter into state consent orders for the divestitures required by the FTC and for the divestiture of three additional stores in New York, Vermont and Virginia. Finalization of the state decrees is not required for closing. The company said that, with the acquisition, it will be the largest drugstore chain on the East Coast and will strengthen its position as the third largest U.S. drugstore chain. About Rite Aid Rite Aid Corporation (NYSE:RAD) -- http://www.riteaid.com/-- is one of the United States' leading drugstore chains with annual revenues of approximately $17.5 billion and more than 3,330 stores in 27 states and the District of Columbia. * * * As reported in the Troubled Company Reporter on May 17, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating and '1' recovery rating to Rite Aid Corp's $1.105 billion senior secured tranche 2 term loan facility. The '1' recovery rating indicating the high expectation for full recovery of principal in the event of a payment default. Concurrently, Standard & Poor's raised the ratings on the three existing second-lien notes to 'B+' from 'B' and assigned a '1' recovery rating, indicating the high expectation for full recovery of principal in the event of a default. The secured notes ratings have been removed from CreditWatch with developing implications. At the same time, Standard & Poor's affirmed all other ratings, including the 'B' corporate credit rating. The outlook is stable. RKS SERVICE: Case Summary & 15 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: R K S Service Inc. 1235 Carbide Drive Corona, CA 92881 Bankruptcy Case No.: 07-13059 Chapter 11 Petition Date: June 1, 2007 Court: Central District Of California (Riverside) Judge: Mitchel R. Goldberg Debtor's Counsel: Roger E. Naghash, Esq. 4400 MacArthur Boulevard, Suite 900 Newport Beach, CA 92660 Tel: (949) 955-1000 Total Assets: $682,026 Total Debts: $2,533,652 Debtor's List of its 15 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ EastWest Bank $272,132 135 North Los Robles Avenue, Suite 200 Pasadena, CA 91101 Nobel Systems $161,107 1845 Business Center Drive, Suite 130 San Bernardino, CA 92408 Air Control Systems $123,250 1901 Nancita Circle Placentia, CA 92870 DDI, Inc. $111,125 Windsor Food Group $106,361 BH Properties, LLC $105,839 Fordham Electric $102,721 Turner Riverwalk - 3, LLC $94,616 Floor It $92,313 Palmer & Co. $91,502 Internal Revenue Service $88,447 Precision Glass & Mirror $77,236 Hamilton Ceiling Systems $77,168 Joseph P. Kriek $76,850 G.E. Felkel $62,979 ROCK & WATERSCAPE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Rock & Waterscape Systems, Inc. 12 Whatney Irvine, CA 92618 Bankruptcy Case No.: 07-11631 Type of Business: The Debtor provides design and construction services for rock and water features. The Debtor has developed many of the techniques that are commonplace in the industry today. The company continues to innovate special techniques used in the fabrication and installation of artificial features and their transition to natural elements on each site. See http://www.rockandwaterscape.com/ Chapter 11 Petition Date: June 1, 2007 Court: Central District Of California (Santa Ana) Debtor's Counsel: David L. Neale, Esq. Levene Neale Bender Rankin & Brill LLP 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: (310) 229-1234 Fax: (310) 229-1244 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ 925 Woodstock LLC $127,450 c/o Mark F. Dehler, LLC 201 Swanton Way Decatur, GA 30030 Pacific Mercantile VISA Accounts $108,680 3043 Research Drive Richmond, CA 94805 PBC Companies $84,118 1560 West Lambert Road Brea, CA 92821 Main Street America, Inc. $74,356 Allen Matkins Lack Gamble $72,488 Aquatic Creations, Inc. $71,500 IPS Innovative Polymer Systema, Inc. $69,000 Lamb Stone Co., Inc. $61,932 T.B. Penick & Sons, Inc. $52,781 Maschmeyer Concrete Co. of Florida, Inc. $48,584 Neff Rental, Inc. $46,481 Blue Shield of California $42,430 First Insurance Funding Corp. $41,942 Ace Sales, Inc. $41,852 Blue Cross of California $52,797 Coan Construction Co., Inc. $40,113 CBJT, Inc. dba Agricultural Supply $39,969 Sprint $39,928 STO Design Group, Inc. $39,892 Wright Express $38,713 ROYAL CORDAGE: Case Summary & Eight Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Royal Cordage Corporation P.O. Box 430 Stanley, NC 28164 Bankruptcy Case No.: 07-31102 Chapter 11 Petition Date: May 29, 2007 Court: Western District of North Carolina (Charlotte) Judge: George R. Hodges Debtor's Counsel: R. Keith Johnson, Esq. 312 West Trade Street Suite 600, Builders Building Charlotte, NC 28202 Tel: (704) 372-3867 Total Assets: $2,200,000 Total Debts: $5,246,000 Debtor's List of its Eight Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Jerry Webb $1,000,000 P.O. Box 775 Stanley, NC 28164 CIT Commercial Service $998,000 P.O. Box 31307 Charlotte, NC R. Lloyd Alwran $500,000 3826 Charles Raper Jonas Highway Stanley, NC 28164 G.E. Capital $650,000 c/o Elizabeth Repetti, Esq. Secured: P.O. Box 21029 $2,200,000 Winston-Salem, NC 27120-1029 Unsecured: $450,000 Gaston Co. Tax Collector $70,000 Austin Insulating $10,000 Secured: $2,200,000 Unsecured: $10,000 Jolley Electrical $10,000 Duke Power $8,000 RURAL CELLULAR: Sells $425 Mil. of Sr. Notes in Private Placement ----------------------------------------------------------------- Rural Cellular Corporation, on May 30, 2007, pursuant to a purchase agreement entered into with Bear Stearns & Co. Inc. on May 24, 2007, issued and sold in a private placement, for resale under Rule 144A and Regulation S of the Securities Act, as amended, $425 million in aggregate principal amount of senior subordinated floating rate notes due 2013. These agreements were entered into in connection with the closing of such issuance and sale: (i) the company and Wells Fargo Bank, N.A., as trustee, entered into an Indenture governing the Notes and (ii) the company and the Initial Purchaser entered into a Registration Rights Agreement with respect to the Notes. The Notes will mature on June 1, 2013 and bear interest at three- month LIBOR plus 3.00% per year, adjusted quarterly. The Notes are redeemable at the company's option beginning June 1, 2008, at 102.000% of principal, plus accrued and unpaid interest, declining to 101.000% at June 1, 2009, and 100.000% at June 1, 2010. Prior to June 1, 2008, the company may, at its option, redeem up to 35% of the original aggregate principal amount of the Notes with the net cash proceeds of certain sales of equity securities at 100.000% of principal, plus accrued and unpaid interest, if any and to the extent that, after such redemption, at least 65% of the aggregate principal amount of the Notes remains outstanding. In addition, prior to June 1, 2008, the company may, at its option, redeem some or all of the Notes at an established "make whole" price. The Indenture provides that, if an event of default occurs and is continuing, either the Trustee or the holders of at least 25% in aggregate principal amount of the Notes then outstanding may declare all principal, accrued interest, if any, immediately due and payable, except that an event of default resulting from certain events of bankruptcy, insolvency or reorganization in respect of the company or certain of its subsidiaries will automatically cause all principal, accrued interest, if any, to become immediately due and payable. Events of default include: (i) failure to pay any installment of interest on the Notes when due and payable and the continuance of any such failure for 30 days; (ii) failure to pay principal, or premium, if any, on the Notes when due and payable; (iii) failure to observe or perform any other covenant or agreement contained in the Notes or the Indenture and, subject to certain exceptions, the continuance of such failure for a period of 60 days after notice to the company, (iv) certain events of bankruptcy, insolvency or reorganization in respect of the company or certain of its subsidiaries; and (v) certain defaults in indebtedness with an aggregate amount outstanding in excess of $20 million. The Notes rank junior in right of payment to the company's existing and future senior indebtedness and rank equally with all of its existing and future senior subordinated indebtedness. The Registration Rights Agreement obligates the company to file a registration statement with the Securities and Exchange Commission allowing for the exchange of the Notes for registered notes having substantially identical terms as the Notes and evidencing the same indebtedness as the Notes. Under the Registration Rights Agreement, the company has agreed to use its commercially reasonable efforts to cause a registration statement filed with the SEC covering the re-sale of the Notes to become effective within 240 days after May 30, 2007. The company also has agreed, in specified circumstances, to file a shelf registration statement to cover re-sales of the Notes. The company may be required to pay liquidated damages if it fails to comply with the registration and exchange requirements set forth in the Registration Rights Agreement. About Rural Cellular Corporation Based in Alexandria, Minnesota, Rural Cellular Corporation provides wireless telecommunication services to approximately 600 thousand retail subscribers in rural areas of the United States. * * * As reported in the Troubled Company Reporter on April 2, 2007, Moody's Investors Service placed all ratings of Rural Cellular Corporation's Corporate family rating at B3, $300 million 9.75% senior subordinate notes due 2010 at Caa2, $175 million senior subordinate FRN's due 2012 at Caa2 under review for possible downgrade. SHEARSON FINANCIAL: Posts $787,324 Net Loss in Qtr. Ended March 31 ------------------------------------------------------------------ Shearson Financial Network Inc. reported a net loss of $787,324 for the first quarter ended March 31, 2007, compared with a net loss of $2.9 million for the same period ended March 31, 2006. Net revenues from origination and/or sale of loans increased 487.3% or $932,829, to $1,124,273 for the quarter ended March 31, 2007 from $191,444 for the quarter ended March 31, 2006. The increase in revenues can be attributed to the acquisition of 85% of Allstate Home Loans Inc. Total operating expenses decreased $1,459,114 or 49.5% to $1,486,443 for the quarter ended March 31, 2007, from $2,945,557 for the quarter ended March 31, 2006. The decrease is related to a decrease in wages of $537,769 and a decrease in professional fees of $949,234. The decrease in expenses is attributable to the company's reduction in work force and a stabilization of its professional fees. The decrease in net loss for the March 31, 2007, quarter was due to the increase in revenues generated by the company's acquisition of 85% of Allstate Home Loans Inc. and restructuring its operations by eliminating certain overhead costs. At March 31, 2007, the company's balance sheet showed $29.2 million in total assets, $22.9 million in total liabilities, $293,532 in minority shareholder interest, and $6.0 million in total stockholders' equity. The company's balance sheet at March 31, 2007, also showed strained liquidity with $20.1 million in total current assets available to pay $21.9 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2090 Going Concern Doubt Pollard-Kelley Auditing Services Inc. in Fairlawn, Ohio, expressed substantial doubt about Shearson Financial Network Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm reported that the company has not generated significant profits to date and in addition, management believes that it will need additional equity or debt financing to be able to sustain profitability. The company has has an accumulated deficit of $26,861,565 as of March 31, 2007. About Shearson Financial Headquartered in Henderson, Nevada, Shearson Financial Network Inc. (OTC BB: SFNN.OB) -- http://www.shearsonfinancialnetwork.com/ -- is the parent to Shearson Home Loans. Shearson Home Loans is a direct-to-consumer mortgage broker and banker with revenues derived primarily from origination commissions and resale of whole loans earned on the closing of first and second mortgages on single-family residences. SHL currently employs over 500 people which are residential mortgage professionals and is licensed in over 40 states. SPANSION LLC: Prices $75 Million of Senior Secured Notes -------------------------------------------------------- Spansion LLC priced the terms of $75 million aggregate principal amount of Senior Secured Floating Rate Notes due 2013 in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended, and outside the United States to non-U.S. persons in compliance with Regulation S under the Securities Act. The Additional Notes are part of the same series of Spansion LLC's $550 million aggregate principal amount of Senior Secured Floating Rate Notes due 2013 issued and sold by Spansion LLC on May 18, 2007. The interest rate and other terms of the Additional Notes will be identical in all respects to the Initial Notes, except that the offering price of the Additional Notes is 101.125% plus accrued interest from May 18, 2007. Spansion LLC expects to use the net proceeds of the offering of Additional Notes for capital expenditures, working capital and general corporate purposes. About Spansion Based in Sunnyvale, California, Spansion Inc. (NASDAQ:SPSN) -- http://www.spansion.com/-- and its wholly owned subsidiary of Spansion LLC is a Flash memory provider engaged in the designing, developing, manufacturing, marketing and selling Flash memory solutions, a semiconductor element of nearly every electronic product. The company operates four Flash memory wafer fabrication facilities four assembly and test sites and a development fab, known as its Submicron Development Center. The company also has manufacturing, research and assembly operations in Asia. * * * Spansion Inc. carries Standard & Poor's Ratings Services 'B' corporate credit rating. As reported in the Troubled Company Reporter on May 11, 2007, Moody's Investors Service assigned a B1 rating to Spansion LLC's proposed $550 million senior secured floating rate notes due 2013. Standard & Poor's assigned its 'B+' issue rating and its '1' recovery rating to Spansion LLC's new $550 million senior secured floating rate notes. SPECIALTY UNDERWRITING: Fitch Junks Rating on Two Certificates -------------------------------------------------------------- Fitch Ratings has affirmed 11 classes, downgraded four classes (two of which were also placed on Rating Watch Negative) from the following three Specialty Underwriting & Residential Finance asset-backed certificates trusts: SURF 2003-BC1 -- Class A affirmed at 'AAA'; -- Class M1 affirmed at 'AA+'; -- Class M2 affirmed at 'A'; -- Class B-1 downgraded to 'BB' from 'BBB+' and placed on Rating Watch Negative; -- Class B-2 downgraded to 'C/DR6' from 'BB''. SURF 2003-BC2 -- Class M1 affirmed at 'AA+'; -- Class M2 affirmed at 'A+'; -- Class B-1 downgraded to 'BB' from 'BBB+' and placed on Rating Watch Negative; -- Class B-2 downgraded to 'CC/DR3' from 'BBB'. SURF 2004-BC4 -- Class A affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class B-1 affirmed at 'BBB+'; -- Class B-2 affirmed at 'BBB'; -- Class B-3 affirmed at 'BBB-'. The collateral for the aforementioned trusts consist primarily of fixed- and adjustable-rate subprime mortgage loans secured by first or second liens on real properties. The loans were acquired by Merrill Lynch Mortgage Lending, Inc. from various originators and were originated in accordance with the SURF underwriting guidelines. SURF acts as program administrator for the seller, Merrill Lynch Mortgage Lending, Inc., and its loan acquisition program facilitates the purchase by Merrill Lynch Mortgage Lending, Inc. of eligible non-conforming loans from various SURF- approved originators. The affirmations reflect adequate relationships of credit enhancement to future loss expectations and affect approximately $244.9 million of outstanding certificates. The downgraded classes reflect the deterioration in the relationship of CE to future loss expectations and affect approximately $6.7 million of outstanding certificates. Series 2003-BC1 has suffered numerous months of overcollateralization decline over the past year due to losses exceeding excess spread. As of the May 2007 remittance period, the CE of class B-2 has decreased 155 basis points in the past seven months leaving the B-2 bond with only $323,739 in CE provided by the current OC amount. If OC decline continues further rating action may be necessary. Similarly, series 2003-BC2 has had a steady decline in OC for the past four months. As of the May 2007 remittance period, the CE of class B-2 has decreased 193 bps in the past fours month leaving the B-2 bond with only $772,822 in CE provided by the current OC amount. If OC decline continues further rating action may be necessary. The servicer for the aforementioned transactions is Litton Loan Servicing (rated 'RPS1' by Fitch). ST. GEORGE CRYSTAL: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: St. George Crystal, Ltd. 125 Brown Avenue Jeannette, PA 15644 Bankruptcy Case No.: 07-23541 Type of Business: The Debtor manufactures pressed and blown glass, glass products, lighting equipment, glassmaking machinery and equipment and electric lamps. See http://www.stgeo.com/ Chapter 11 Petition Date: June 1, 2007 Court: Western District of Pennsylvania (Pittsburgh) Judge: Judith K. Fitzgerald Debtor's Counsel: Norman E. Gilkey, Esq. Babst, Calland, Clements & Zomnir, P.C. Two Gateway Center, 8th Floor Pittsburgh, PA 15222 Tel: (412) 394-5400 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. STATION CASINOS: March 31 Balance Sheet Upside-Down by $178.4 Mil. ------------------------------------------------------------------ Station Casinos Inc.'s balance sheet as of March 31, 2007, reflected total assets of $3.7 billion, total liabilities of $3.9 billion, and total stockholders' deficit of $178.4 million. First Quarter Results The company's net revenues for the first quarter ended March 31, 2007 were about $372.4 million, an increase of 27% compared to the prior year's first quarter. During the first quarter, the company incurred $2.3 million in costs to develop new gaming opportunities, primarily related to Native American gaming, $4.8 million related to costs associated with the FCP transaction noted below and $800,000 of other non-recurring costs. Including these items, the company reported net income of $23.1 million. The company's net income was $41.1 million on net revenues of $292.5 million for the first quarter ended March 31, 2006. The company's earnings from its Green Valley Ranch joint venture for the first quarter were $13.3 million, which represents a combination of the company's management fee plus 50% of Green Valley Ranch's operating income. For the quarter, Green Valley Ranch generated EBITDA before management fees of $29.2 million, a 3% decrease compared to the prior year's first quarter. Balance Sheet Items and Capital Expenditures Long-term debt was $3.3 billion as of March 31, 2007. Total capital expenditures were $138 million for the first quarter. Expansion and project capital expenditures included $35.2 million for Phases II and III of Red Rock Resort, $11.5 million for the expansion of Santa Fe Station and $32.7 million for the purchase of land. As of March 31, 2007, the company's debt to cash flow ratio was 5.7 to 1. During the three months ended March 31, 2007, the company generated cash flows from operating activities of about $130.9 million. In addition, the company received $285 million from Green Valley Ranch which includes a $185 million distribution and a $100 million promissory note. At March 31, 2007, the company had total available borrowings of $2 billion under the Revolving Facility, which was reduced by borrowings of $984.4 million and various letters of credit totaling about $4.4 million, leaving about $1 billion available as of March 31, 2007. The company had $115.9 million in cash and cash equivalents as of March 31, 2007, virtually all of which is used for day-to-day operations of the company's casinos. Dividend On May 7, 2007 the company's Board of Directors declared a quarterly cash dividend of $0.2875 per share. The dividend is payable on June 4, 2007, to shareholders of record on May 21, 2007. Proposed Merger On Feb. 23, 2007, the company entered into a definitive merger agreement with Fertitta Colony Partners LLC, pursuant to which FCP agreed to acquire all of Station's outstanding common stock for $90 per share in cash. FCP is a new company formed by Frank J. Fertitta III, chairman and chief executive officer of Station, Lorenzo J. Fertitta, vice chairman and president of Station and Colony Capital Acquisitions LLC, an affiliate of Colony Capital LLC. On May 7, 2007, Station filed a preliminary proxy statement and related materials with the Securities and Exchange Commission that provides details about the pending sale of the company. About Station Casinos Station Casinos Inc. (NYSE: STN) -- http://www.stationcasinos.com/ -- owns and operates Red Rock Casino Resort and Spa, Palace Station Hotel & Casino, Boulder Station Hotel & Casino, Santa Fe Station Hotel & Casino, Wildfire Casino and Wild Wild West Gambling Hall & Hotel in Las Vegas, Nevada, Texas Station Gambling Hall & Hotel and Fiesta Rancho Casino Hotel in North Las Vegas, Nevada, and Sunset Station Hotel & Casino, Fiesta Henderson Casino Hotel, Magic Star Casino and Gold Rush Casino in Henderson, Nevada. Station also owns a 50% interest in Green Valley Ranch Station Casino, Barley's Casino & Brewing Company and The Greens in Henderson, Nevada and a 6.7% interest in the Palms Casino Resort in Las Vegas, Nevada. In addition, Station manages Thunder Valley Casino near Sacramento, California on behalf of the United Auburn Indian Community. STRUCTURED ASSET: Fitch Puts Low-B Ratings on Two Certificates -------------------------------------------------------------- Fitch rates Structured Asset Securities Corporation $808.5 million mortgage pass-through certificates, series 2007-BC3: -- $646.7 million classes 1-A1 through 1-A4 and 2-A1 through 2-A4 'AAA'; -- $40.3 million classes 1-M1 and 2-M1 'AA+'; -- $26.3 million classes 1-M2 and 2-M2 'AA'; -- $14.8 million classes 1-M3 and 2-M3 'AA-'; -- $14.0 million classes 1-M4 and 2-M4 'A+'; -- $13.6 million classes 1-M5 and 2-M5 'A'; -- $7.0 million class M6 'A-'; -- $9.5 million class M7 'BBB+'; -- $6.6 million class M8 'BBB'; -- $9.5 million class M9 'BBB-'; -- $11.5 million class B1 'BB+' (144A); -- $8.6 million class B2 'BB' (144A). The 'AAA' rating on the group 1 and group 2 senior certificates reflects the 21.45% total credit enhancement provided by the 4.90% classes 1-M1 and 2-M1, the 3.20% classes 1-M2 and 2-M2, the 1.80% classes 1-M3 and 2-M3, the 1.70% classes 1-M4 and 2-M4, the 1.65% classes 1-M5 and 2-M5, the 0.85% class M6, the 1.15% class M7, the 0.80% class M8, the 1.15% class M9, the privately offered 1.40% class B1 and the privately offered 1.05% class B2, as well as the initial 1.80% overcollateralization. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Aurora Loans Services LLC, which is rated 'RMS1-' by Fitch. The trust fund consists primarily of two mortgage pools, pool 1 and pool 2, totaling 3,747 conventional, adjustable and fixed- rate, fully amortizing and balloon, first lien, residential mortgage loans, all of which have original terms to maturity of not more than 30 years. As of the cut-off date (May 1, 2007), the mortgage trust has an aggregate principal balance of approximately $823,333,142 and an average balance of $219,731. Approximately 20.98% of the aggregate mortgage pool is fixed rate and 79.02% is adjustable. The mortgage pool has a weighted average original loan-to-value ratio of 80.44%, a weighted average coupon of 8.108%, and a weighted average remaining term to maturity of 357 months. Pool 1 of the aggregate mortgage trust consists of 2,254 loans with an aggregate principal balance of $448,347,842 and an average balance of $198,912. Approximately 20.86% of pool 1 is fixed rate and 79.14% is adjustable. Pool 1 has a weighted average OLTV of 81.65%, a WAC of 8.109%, and a WAM of 357 months. Pool 2 of the aggregate mortgage trust consists of 1,493 loans with an aggregate principal balance of $374,985,300 and an average balance of $251,162. Approximately 21.13% of pool 2 is fixed rate and 78.87% is adjustable. Pool 2 has a weighted average OLTV of 78.99%, a WAC of 8.108, and a WAM of 356 months. Group 1 certificates include classes 1-A1 through 1-A4 and 1-M1 through 1-M5. Group 2 certificates include classes 2-A1 through 2- A4 and 2-M1 through 2-M5. Payments of interest and principal on the group 1 and group 2 certificates will be based primarily on collections from pool 1 and pool 2, respectively. There is limited cross-collateralization where, under certain circumstances, interest and principal payments on the mortgage loans in a mortgage pool may be distributed as interest and principal to holders of the senior certificates or the group subordinate certificates corresponding to the other mortgage pool. Payments of principal and interest on classes M6 through M9, B1 and B2 will be based on collections from both mortgage pools. The mortgage loans were originated by various originators or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines. The largest percentages of originations (as a percentage of the cut-off date balance) were those made by BNC Mortgage LLC (60.95% of the mortgage pool) and People's Choice Home Loan, Inc. (16.60% of the mortgage pool), with the remainder of the mortgage loans in the trust fund originated by various banks, savings and loans and other mortgage lending institutions, none of which originated 10% or more of the mortgage loans in the trust fund. SASCO, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits. STRUCTURED ASSET: Fitch Assigns BB+ Rating on $8.5-Mil. Certs. -------------------------------------------------------------- Fitch rates Structured Asset Securities Corp. $814.3 million mortgage pass-through certificates, series 2007-OSI: -- $624.7 million classes A1 through A5 'AAA'; -- $44.9 million class M1 'AA+'; -- $40.2 million class M2 'AA'; -- $12.3 million class M3 'AA-'; -- $15.2 million class M4 'A+'; -- $19.5 million classes M5 and M6 'A'; -- $12.3 million class M7 'A-'; -- $8.9 million class M8 'BBB+'; -- $13.1 million class M9 'BBB'; -- $14.8 million class M10 'BBB-'; -- $8.5 million class B (144A) 'BB+'. The 'AAA' rating on the senior certificates reflects the 26.20% total credit enhancement provided by the 5.30% class M1, the 4.75% class M2, the 1.45% class M3, the 1.80% class M4, the 1.60% class M5, the 0.70% class M6, the 1.45% class M7, the 1.05% class M8, the 1.55% class M9, the 1.75% class M10 and the privately offered 1% class B, as well as the initial 3.80% overcollateralization. Fitch believes that the amount of credit enhancement will be sufficient to cover credit losses, including limited bankruptcy, fraud and special hazard losses. In addition, the ratings reflect the quality of the mortgage collateral, the strength of the legal and financial structures, and the master servicing capabilities of Aurora Loans Services LLC, which is rated 'RMS1-' by Fitch. The aggregate trust consists of 3,704 fixed and adjustable-rate, conventional, first and second lien residential mortgage loans, all of which have original terms to maturity of not more than 30 years. As of the cut-off date (May 1, 2007), the mortgages have an aggregate principal balance of approximately $846,479,045. Approximately 23.67% of the mortgage pool is fixed rate and 76.33% is adjustable. The mortgage pool has a weighted average original loan-to-value ratio of 85.89%, a weighted average coupon of 8.663%, and a weighted average remaining term of 354. The mortgage loans were originated by various originators or acquired by various originators or their correspondents in accordance with such originator's respective underwriting standards and guidelines. The largest percentages of originations (as a percentage of the cut-off date balance) were those made by BNC Mortgage LLC (62.12% of the mortgage pool), Residential Mortgage Assistance Enterprise LLC (18.11% of the mortgage pool), Lehman Brothers Bank, FSB (12.88% of the mortgage pool) and Mortgage Lenders Network USA, Inc. (6.89% of the mortgage pool). SASCO, a special purpose corporation, deposited the loans in the trust, which issued the certificates. For federal income tax purposes, an election will be made to treat the trust fund as multiple real estate mortgage investment conduits. SUNCOM WIRELESS: March 31 Balance Sheet Upside-Down by $433.1 Mil. ------------------------------------------------------------------ SunCom Wireless Holdings Inc.'s balance sheet as of March 31, 2007, showed total assets of $1.6 billion, total liabilities of $2 billion, resulting in a stockholders' equity deficit of $433.1 million. The company incurred a $28.9 million net loss for the three months period of March 31, 2007, compared to a $147.2 million net loss for the same period in 2006. Revenues for the first quarter 2007 were $232.9 million, as compared with $201.9 million for the first quarter 2006. Net cash provided by operating activities in the first quarter of 2007 was $9.2 million, as compared with net cash used in operating activities of $24.1 million of net cash used in operating activities in the first quarter of 2006. Michael E. Kalogris, chairman and chief executive officer of SunCom Wireless, said: "We are very pleased that SunCom's operational performance continued to improve in the first quarter. We have now experienced four consecutive quarters of improved ARPU, evidence that our strategy to improve this key metric is working." Commenting on the operational results in the quarter, Bill Robinson, executive vice president of operations said, "We are focused on providing great products, competitive pricing and a personal touch in customer service for our customers." Recent Developments On April 20, 2007, SunCom's shareholders approved the Exchange Agreement between SunCom Wireless Investment Co. LLC and holders of certain of SunCom Wireless Inc.'s subordinated notes as well as the adoption of the Agreement and Plan of Merger. Both proposals passed with the required majority of the outstanding SunCom shares, representing in each case over 80% of the total votes cast on the proposals. Under the terms of the Exchange Agreement, subordinated noteholders will exchange about 98% of the outstanding subordinated notes for 51.9 million shares of SunCom Wireless Holdings Inc.'s Class A Common stock, giving effect for a 1-for-10 reverse stock split effected under the Agreement and Plan of Merger. Consummation of the Exchange Agreement cannot occur until the necessary approval is received from the Federal Communications Commission. Parties to the Exchange Agreement are actively working with the FCC to obtain the necessary approval. About SunCom Wireless Based in Berwyn, Pennsylvania, SunCom Wireless Holdings Inc. (NYSE: TPC) (OTC: SWSH.OB) -- http://www.suncom.com/-- offers digital wireless communications services to more than one million subscribers in the southeastern United States, Puerto Rico and the U.S. Virgin Islands. SunCom is committed to delivering Truth in Wireless by treating customers with respect, offering simple, straightforward plans and by providing access to the largest GSM network and the latest technology choices. TESORO PETROLEUM: Fitch Rates New $500 Million Senior Notes at BB ----------------------------------------------------------------- Fitch Ratings has revised its Outlook on Tesoro Petroleum Corporation (NYSE: TSO) from Stable to Positive, following the closing of the company's acquisition of Shell Oil Products' 100,000 bpd Wilmington refinery in Los Angeles plus affiliated retail assets. Fitch has also assigned a rating of 'BB' to the company's recently issued $500 million of senior unsecured ten year notes. Proceeds from the notes will be used to help repay $700 million in funds used to make the Wilmington purchase. Fitch has also affirmed Tesoro's debt: -- Issuer Default Rating 'BB'; -- Senior secured credit facility 'BB+'; -- Senior unsecured notes 'BB'; -- Senior subordinated notes 'B+'. The Positive Outlook reflects the strong outlook for U.S. refiners heading into the driving season, the progress that Tesoro has made to date in paying off acquisition debt, and the improved diversification of cash flows which will come from operating a larger seven refinery system. Offsetting factors include increasing efforts by management to reward shareholders, higher capital expenditures at Tesoro's refineries over the next few years, and lingering concerns over management's long-term commitment to maintaining a stronger credit profile. From a strategic perspective, the Wilmington acquisition is attractive for a number of reasons. The deal strengthens Tesoro's position as a West coast refiner by adding high complexity refining capacity in the key California market. Complex refineries have a greater ability to process heavy, high sulfur feedstocks, which tend to be inexpensive relative to other crude oils. The company also hopes to realize key synergies from the deal, including economies of scale associated with larger crude purchases for its refineries. Following the acquisition, Tesoro owns and operates seven crude oil refineries with a rated crude oil capacity of approximately 663,000 bpd. Five of Tesoro's refineries are on the West Coast, with facilities in California, Alaska, Hawaii, and Washington. Tesoro also has refineries in Salt Lake City, Utah, and Mandan, North Dakota. Tesoro sells refined products wholesale or through its network of branded retail outlets. TOWN SPORTS: March 31 Balance Sheet Upside-Down by $20.3 Million ---------------------------------------------------------------- Town Sports International Holdings Inc. reported as of March 31, 2007, it had total assets of $436.4 million, total liabilities of $456.7 million, and total stockholders' deficit of $20.3 million. Net loss for the first quarter ended March 31, 2007, was $3.8 million compared to a net loss of $135,000 in first quarter 2006. First quarter 2007 total revenue grew 10.9% to $115.4 million from $104 million for the first quarter of 2006. Comparable club revenue increased 7.8% during the first quarter compared to the same period in the prior year. Cash flow from operations for first quarter 2007 decreased $15.8 million or 45.6% to $18.9 million from $34.7 million in first quarter 2006. Cash used in financing activities for first quarter 2007 totaled $2.9 million. On Feb. 27, 2007, TSI LLC received proceeds of $185 million from a new term loan facility. The proceeds from this facility were used to repay the remaining $170 million principal of TSI LLC's 9-5/8% Senior Notes. The premium paid for this early debt extinguishment was $9.3 million and the costs related to the new credit facility were $2.6 million. Robert Giardina, chief executive officer of TSI, commented: "We are pleased to have started the year with good results and continued positive momentum. Most notably, comparable club revenue growth was again strong, increasing 7.8% and driven by both increased membership and ancillary revenue. New membership sign-ups remained solid and we grew our membership base by 8.7% when compared to March 31, 2006, which was in line with our plan for the quarter, and we continue to anticipate opening approximately 15 new clubs in 2007, equal to 10% square footage growth." About Town Sports Town Sports International Holdings Inc. owns and operates fitness clubs in the Northeast and Mid-Atlantic regions of the United States and the fourth largest fitness club operator in the United States, in each case as measured by number of clubs. As of March 31, 2007, it owned and operated 150 fitness clubs and partly owned and operated two fitness clubs. These 152 clubs collectively served about 476,000 members. TRIBUNE CO: Completes Offer with 126 Million Shares Tendered ------------------------------------------------------------ Tribune Company disclosed the final results of its tender offer which expired at 5:00 p.m., New York time, Thursday, May 24, 2007. Tribune has accepted for payment 126 million of the 218,132,108 shares tendered in the tender offer, at a price of $34 per share. The shares tendered represent approximately 90% of shares outstanding, and the shares that Tribune will repurchase represent approximately 52% of shares outstanding. After the repurchase, Tribune will have approximately 117 million shares of common stock outstanding. In connection with more than 126 million shares-tendered in the tender offer, proration of tendered shares, except for "odd lots", was required. Based on the number of shares tendered, the company will apply a proration factor of 0.5771140650. The proration factor is based on the ratio of 126 million shares to the total number of shares properly tendered and not properly withdrawn by all shareholders, other than "odd lot" holders. The company will commence payment for shares purchased in the tender offer promptly and in any event no later than June 5, 2007. Payment for shares purchased will be made in cash, without interest. The company will promptly return shares that it does not purchase to the tendering stockholders at the company's expense. "The company is pleased with the results of the tender offer and its successful conclusion," Dennis FitzSimons, Tribune chairman, president and chief executive officer, said. "The first stage of the company's transaction that will result in Tribune Company going private is now complete. The company looks forward to obtaining the necessary approvals for the next stage of the transaction and to completing the transition to a private company." Merrill Lynch & Co., Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and Banc of America Securities LLC served as Co- Dealer Managers for the tender offer. Innisfree M&A Incorporated served as Information Agent and Computershare Trust Company, N.A. served as the Depositary. Any questions about the tender offer may be directed to Innisfree M&A at 501 Madison Avenue, New York, NY 10022, telephone (877) 825- 8621 (banker and brokerage firms call collect (212) 750-5833). About Tribune Company Headquartered in Chicago, Tribune Company (NYSE: TRB) -- http://www.tribune.com/-- is one of the country's top media companies, operating businesses in publishing, interactive and broadcasting. It reaches more than 80% of U.S. households and is the only media organization with newspapers, television stations and websites in the nation's top three markets. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, Newsday (Long Island, NY), The Sun (Baltimore), South Florida Sun-Sentinel, Orlando Sentinel and Hartford Courant. The company's broadcasting group operates 23 television stations, Superstation WGN on national cable, Chicago's WGN-AM and the Chicago Cubs baseball team. * * * As reported in the Troubled Company Reporter on April 25, 2007, Moody's Investors Service downgraded Tribune Company's Corporate Family rating to Ba3 from Ba1, existing senior unsecured notes to B2 from Ba1, and subordinated notes to B2 from Ba2. The rating actions reflect the significant increase in leverage that will result from Tribune's repurchase of approximately $4.2 billion of common stock through a tender offer in the first step of its plan to go private, and that the increase in leverage is occurring at a time of pressure on Tribune's advertising revenue and operating margins. TRIBUNE CO: Matthew Bender Tax Case Settlement Offer Pending ------------------------------------------------------------ Tribune Company reported that an offer of settlement is pending in its appeal of the 2005 Tax Court decision disallowing the tax free reorganization of Matthew Bender, a former subsidiary of The Times Mirror Company. Under the proposed settlement, Tribune will receive refunds of approximately $350 million in federal and state income taxes and interest resulting from payments made for both the Matthew Bender transaction and a similar transaction completed by Times Mirror. Tribune acquired Times Mirror in June 2000, and inherited the preexisting tax dispute at that time. A filing with the Seventh Circuit U.S. Court of Appeals said that while it is not certain that the settlement will be approved, counsel for both parties are optimistic that the case can be resolved without the intervention of the Court. The Court has agreed to defer the June 5 oral argument for 90 days to allow for governmental review and approval of the offer. Tribune expects to have further information regarding its offer of settlement in the third quarter of 2007. Both parties are restricted from publicly discussing the terms of the settlement agreement, except as otherwise legally required. About Tribune Company Headquartered in Chicago, Tribune Company (NYSE: TRB) -- http://www.tribune.com/-- is one of the country's top media companies, operating businesses in publishing, interactive and broadcasting. It reaches more than 80% of U.S. households and is the only media organization with newspapers, television stations and websites in the nation's top three markets. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, Newsday (Long Island, NY), The Sun (Baltimore), South Florida Sun-Sentinel, Orlando Sentinel and Hartford Courant. The company's broadcasting group operates 23 television stations, Superstation WGN on national cable, Chicago's WGN-AM and the Chicago Cubs baseball team. * * * As reported in the Troubled Company Reporter on April 25, 2007, Moody's Investors Service downgraded Tribune Company's Corporate Family rating to Ba3 from Ba1, existing senior unsecured notes to B2 from Ba1, and subordinated notes to B2 from Ba2. The rating actions reflect the significant increase in leverage that will result from Tribune's repurchase of approximately $4.2 billion of common stock through a tender offer in the first step of its plan to go private, and that the increase in leverage is occurring at a time of pressure on Tribune's advertising revenue and operating margins. TURNAGE HOLDINGS: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Turnage Holdings, LLC 19230 Hikers Trail Drive Humble, TX 77346 Tel: (281) 883-4746 Bankruptcy Case No.: 07-33454 Chapter 11 Petition Date: May 30, 2007 Court: Southern District of Texas (Houston) Judge: Letitia Z. Clark Debtor's Counsel: Michael J. Durrschmidt, Esq. Hirsch & Westheimer, P.C. 700 Louisiana, 25th Floor Houston, TX 77002-2728 Tel: (713) 220-9165 Fax: (713) 223-9319 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. VESCOR CAPITAL: Case Summary & 21 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Vescor Capital Inc. 4590 Harrison Boulevard, Suite 200 Ogden, UT 84403 Bankruptcy Case No.: 07-22435 Type of Business: VesCor Capital invests in real estate-based, income-producing projects throughout the western United States. Chapter 11 Petition Date: May 30, 2007 Court: District of Utah (Salt Lake City) Judge: Glen E. Clark Debtor's Counsel: J. Thomas Beckett, Esq. Parsons Behle & Latimer 201 South Main Street, Suite 1800 P.O. Box 45898 Salt Lake City, UT 84145-0898 Tel: (801) 532-1234 Fax: (801) 536-6111 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 21 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ B&I Buchanan Family L.P. $6,003,197 c/o Bernard Buchanan 1910 Pheasant Drive Harlingen, TX 78550 Buchanan Family Trust $5,145,765 c/o Bernard Buchanan 1910 Pheasant Drive Harlingen, TX 78550 Buck Investments, LLC $3,255,326 c/o Bernard Buchanan 1910 Pheasant Drive Harlingen, TX 78550 Martin Gerla $1,250,000 Via Verdi 191 2272 WE Voorburg Holland Richard Parmenter $1,170,304 21 Ocean Harbor Lane Las Vegas, NV 89148 Waldo C. Perkins $1,030,953 2556 Sherwood Drive Salt Lake City, UT 84108 ATI Group, LLC $1,000,000 c/o Adam Titus 3767 Caesars Circle Las Vegas, NV 89120 Ron & Carla Mulder $1,000,000 Don Boscostraat 11 2161 KW Lisse Holland Mark W. Garrity $843,924 1029 Keys Drive Boulder City, NV 89005 Jay R. Christensen $758,479 275 Eagle Way North Salt Lake, UT 84054 Valle Verde Family L.P. $742,494 c/o Jonathan Yantis 21 Tahiti Beach Island Road Coral Gables, FL 33143-6540 Nancy Barnes $615,216 7321 Sundown Avenue Las Vegas, NV 89113 Bruce J. Dockstader $593,750 1040 North Berkshire Drive Washington, UT 84780 Neal Yoshida $549,500 901 Filbert Avenue Clovis, CA 93611 Arthur Potter Jennings $542,481 411 Grandview Farms Drive Union, MO 63084-4470 DAR First Family L.P. $537,883 c/o Darlene Howard 1501 East Mt. Charleston Drive South Pahrump, NV 89048 Theron N. Jensen Family Trust $506,927 c/o Theron Jensen P.O. Box 193 Mesquite, NV 89024 Marinus DeBlieck $500,000 Sportlaan 3-306 2215 NB Voorhout Holland Margery Doxey Hatch Family Living Trust $500,000 c/o C. Steven Hatch 2152 East Calle Maderas Mesa, AZ 85203 J. Lamar & Lynne Richards, J.T.W.R.O.S $500,000 7616 South Keswick Road Sandy, UT 84093 Siobhan, Inc. $500,000 c/o Vilma Thomas 101 Convention Center Drive, Suite 700 Las Vegas, NV 89109 WEIGHT WATCHERS: March 31 Balance Sheet Upside-Down by $1 Billion ----------------------------------------------------------------- Weight Watchers International, Inc. had total assets of $1 billion, total liabilities of $2 billion, resulting in a total stockholders' deficit of $1 billion as of March 31, 2007. The company's balance sheet as of March 31, 2007, also showed strained liquidity with total current assets of $268.2 million and total current liabilities of $186.6 million. For the first quarter of 2007, net revenues increased $57.4 million or 16.8% to $399.4 million, up from $342 million in the first quarter of 2006. Net income for the first quarter of 2007 was $53.8 million, as compared with $57 million for the first quarter of 2006. Sources and Uses of Cash For the three months ended March 31, 2007, cash and cash equivalents were $53.9 million, an increase of $16.4 million from Dec. 30, 2006. For the three months ended April 1, 2006, cash and cash equivalents were $52.9 million, an increase of $21.4 million from Dec. 31, 2005. Balance Sheet Comparing the balance sheet at March 31, 2007 with that at Dec. 30, 2006, the company's cash balance has increased by $16.4 million to $53.9 million, as noted above. The company's working capital deficit at March 31, 2007, was $81.5 million, including $53.9 million of cash, as compared to $81.8 million, including $37.5 million of cash, at Dec. 30, 2006. Excluding the change in cash, the working capital deficit increased by $16.1 million from Dec. 30, 2006, to March 31, 2007. Of the $16.1 million increase in negative working capital, about $36.1 million relates to operational items and $3.6 million reflects an increase in the current portion of our long-term debt. These are partially offset by a decrease in negative working capital of $23.6 million arising from higher deferred taxes. The $36.1 million of operational items is largely the result of a $28.3 million increase in deferred revenue for member prepayments associated with our new commitment plans. The remaining $7.8 million is comprised of net payables and accrued expenses increasing $8.8 million, inventories declining by $3.6 million, and a $4.6 million higher receivables balance in the quarter. Long Term Debt As of March 31, 2007, the WWI Credit Facility consists of a term loan facility in an aggregate amount of up to $1.5 billion consisting of Term Loan A, Additional Term Loan A and Term Loan B, and the Revolver in the amount of up to $500 million. At March 31, 2007, WWI had debt of $1.8 billion and had additional availability under its $500 million Revolver of $229.2 million. At March 31, 2007 and Dec. 30, 2006, the company's debt consisted entirely of variable-rate instruments. The average interest rate on our debt was about 6.7% and 6.8% per annum at March 31, 2007, and Dec. 30, 2006, respectively. Commenting on results, David Kirchhoff, president and chief executive officer of the company, said, "During the first quarter, we began to see some of the benefits of our transforming initiatives, particularly Monthly Pass. The company is taking meaningful steps to achieve its long-term growth aspirations by focusing on improving member success and increasing our overall relevance." The company reaffirms its full year 2007 earnings guidance of between $2.33 and $2.47 per fully diluted share, including $0.02 per share of non-recurring expense associated with the early extinguishment of debt in the first quarter of 2007. About Weight Watchers Weight Watchers International Inc. (NYSE: WTW) -- http://www.weightwatchersinternational.com/-- provides weight management services, operating globally through a network of Company-owned and franchise operations. Weight Watchers holds over 50,000 weekly meetings where members receive group support and education about healthy eating patterns, behavior modification and physical activity. WeightWatchers.com provides innovative, subscription weight management products over the Internet and is the leading Internet-based weight management provider in the world. In addition, Weight Watchers offers a wide range of products, publications and programs for those interested in weight loss and weight control. WELLS FARGO: Fitch Puts Low B Ratings on $15.3 Mil. Certificates ---------------------------------------------------------------- Wells Fargo mortgage pass-through certificates, series 2007-7, are rated by Fitch Ratings as: -- $4,908,867,629 classes A-1 through A-51, A-PO, and A-R 'AAA' (senior certificates); -- $114,752,000 class B-1 'AA'; -- $30,601,000 class B-2 'A'; -- $20,401,000 class B-3 'BBB'; -- $10,200,000 class B-4 'BB'; and -- $5,100,000 class B-5 'B'. The 'AAA' ratings on the senior certificates reflect the 3.75% subordination provided by the 2.25% class B-1, the 0.60% class B- 2, the 0.40% class B-3, the 0.20% privately offered class B-4, the 0.10% privately offered class B-5, and the 0.20% privately offered class B-6. The ratings on the class B-1, B-2, B-3, B-4, and B-5 certificates are based on their respective subordination. Class B-6 is not rated by Fitch. This transaction contains certain classes designated as Exchangeable REMIC certificates and Exchangeable Certificates. Exchangeable REMIC Certificates: A-9. Exchangeable Certificates: A-50 and A-51. All other classes are regular certificates. All or a portion of certain classes of offered exchangeable REMIC certificates may be exchanged for a proportionate interest in the related exchangeable certificates. All or a portion of the exchangeable certificates may also be exchanged for the related offered exchangeable REMIC certificates in the same manner. This process may occur repeatedly. The classes of offered exchangeable REMIC certificates and of exchangeable certificates that are outstanding at any given time, and the outstanding principal balances and notional amounts of these classes, will depend upon any related distributions of principal, as well as any exchanges that occur. Offered exchangeable REMIC certificates and exchangeable certificates in any combination may be exchanged only in the proportions shown in the governing documents. Holders of exchangeable certificates will be the beneficial owners of a proportionate interest in the certificates in the related combination group and will receive a proportionate share of the distributions on those certificates. With respect to any distribution date, the aggregate amount of principal and interest distributable to, and amount of principal and interest losses and interest shortfalls on, all of the exchangeable certificates in any exchangeable combination on such distribution date will be identical to the aggregate amount of principal and interest distributable to, and amount of principal and interest losses and interest shortfalls on, all of the exchangeable REMIC certificates in the related REMIC combination on such distribution date. Fitch believes the amount of credit enhancement available will be sufficient to cover credit losses. The ratings also reflect the high quality of the underlying collateral, the integrity of the legal and financial structures, and the primary servicing capabilities of Wells Fargo Bank, N.A. ([WFB]; rated 'RPS1' by Fitch). The transaction consists of 8,620 fixed interest rate, first lien mortgage loans, with an original weighted average term to maturity of approximately 30 years. The aggregate unpaid principal balance of the pool is $5,100,122,415 as of May 1, 2007 (the cut-off date), and the average principal balance is $591,662. The weighted average original loan-to-value ratio of the loan pool is approximately 72.66%; 1.59% of the loans have an OLTV greater than 80%. The weighted average coupon of the mortgage loans is 6.302%, and the weighted average FICO score is 746. The states that represent the largest geographic concentration are California (44.47%) and New York (6.93%). All other states represent less than 5% of the outstanding balance of the pool. None of the mortgage loans are 'high cost' loans as defined under any local, state, or federal laws. All of the mortgage loans were generally originated in conformity with underwriting standards of WFB. WFB sold the loans to Wells Fargo Asset Securities Corporation, a special purpose corporation, who deposited the loans into the trust. The trust issued the certificates in exchange for the mortgage loans. WFB will act as servicer and custodian, and HSBC Bank USA, National Association will act as trustee. Elections will be made to treat the trust as one real estate mortgage investment conduit for federal income tax purposes. WINDSTREAM CORP: Fitch Affirms BB+ IDR on CT Communication Deal --------------------------------------------------------------- Fitch Ratings has affirmed Windstream Corporation's Issuer Default Rating at 'BB+' and other ratings. The Rating Outlook is Stable. On May 29, 2007, Windstream announced a definitive agreement to acquire CT Communications, Inc., which Windstream anticipates funding through a combination of cash and debt. The total value of the transaction is approximately $585 million including the assumption of cash and debt. The affirmation reflects Fitch's view that while Windstream's acquisition of CT will be slightly levering upon its close, leverage will remain in the 'BB+' category. For the 12 months ending March 31, 2007, CT had approximately $57 million of EBITDA and $179 million of revenues. Windstream expects to realize approximately $30 million in annual cost syngeries in the first full year of operations after the close of the transaction, which is expected for the second half of 2007 following the customary regulatory and CT shareholder approvals. Fitch believes Windstream will be able to finance the transaction through its expected cash balances and available revolving credit facilities, although Fitch would expect the company to raise a portion of the financing in the long-term debt markets. At March 31, 2007, Windstream had approximately $398 million in cash, and its $500 million revolving credit facility was undrawn. The revolving credit facility matures in July 2011. Debt maturities in the next several years, including the required amortization of the $1.9 billion outstanding on its term credit facilities, are nominal. Additional factors supporting the affirmation of Windstream's IDR and Stable Outlook include prospects for strong operating cash flow, stable credit-protection metrics and access to ample liquidity. The company's business profile should be relatively stable due to its primarily rural operations. Fitch forecasts Windstream's dividend payout ratio as a percentage of its net free cash flow in the 70%-75% range. Fitch expects the company to maintain a relatively stable leverage ratio, with debt-to-EBITDA in the 3.2 times-3.3x range over the next few years. Pro forma for the mid-2006 merger with Valor Communications Group, Inc., gross debt-to-operating EBITDA was 3.3x in 2006. Fitch believes that Windstream's rural footprint provides it with modestly lower exposure to competition than the urban-based Regional Bell Operating Companies. In 2007, Fitch expects Windstream to experience increased pressure on its revenues and cash flow from cable telephony competition, as cable operators roll-out their offerings beyond the 40% of Windstream's access lines currently covered. Windstream will need to be successful in mitigating this pressure by growing revenue from new services, including the continued deployment of high-speed data services, and by including satellite-provided video services in its bundle. In addition, the company will attempt to mitigate pressure on cash flow through cost controls and the realization of synergies arising from the combination of its predecessor companies' operations. Windstream's credit facilities are secured by assets in a portion of the regulated wireline business as well as by the assets of its unregulated businesses. Regulated subsidiaries that required the approval of the transaction, or approval of a grant of a guarantee, by state regulators did not provide a guarantee to the senior secured credit facilities. Principal financial covenants in the credit facilities require a minimum interest coverage ratio of 2.75x and a maximum leverage ratio of 4.5x. There will be limitations on capital spending, and the dividend will be limited to the sum of excess free cash flow and net cash equity issuance proceeds subject to pro forma leverage of 4.5x or less. Fitch has affirmed these ratings: Windstream Corporation -- IDR 'BB+'; -- Secured credit facility 'BBB-'; -- Senior unsecured notes 'BB+'. Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp. (co-issuers) -- IDR 'BB+'; -- Senior notes 'BBB-'. Windstream Georgia Communications -- IDR 'BB+'; -- Senior unsecured notes 'BBB-'. Windstream Holdings of the Midwest -- IDR 'BB+'; -- Senior unsecured notes 'BB+'. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Working Equity Assets Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------------ ------- -------- Abraxas Petro ABP (22) 118 (4) AFC Enterprises AFCE (25) 162 4 Alaska Comm Sys ALSK (29) 551 19 Alliance Imaging AIQ (4) 678 50 Bare Escentuals BARE (189) 184 91 Blount International BLT (98) 448 135 CableVision System CVC (5,349) 9,654 (638) Calpine Corp CPNLQ (7,348) 18,594 (3,055) Carrols Restaurant TAST (26) 453 (31) Cell Therapeutic CTIC (101) 94 24 Centennial Comm CYCL (1,090) 1,393 92 Charter Comm-A CHTR (6,345) 15,177 (1,015) Cheniere Energy CQP (168) 2,104 108 Choice Hotels CHH (70) 305 (55) Cincinnati Bell CBB (773) 1,951 27 Claymont Stell PLTE (50) 150 67 Compass Minerals CMP (46) 691 157 Corel Corp. CRE (21) 271 42 Crown Holdings CCK (225) 6,582 310 Crown Media HL CRWN (519) 759 64 CV Therapeutics CVTX (90) 356 263 Dayton Superior DSUP (106) 312 79 Deluxe Corp DLX (40) 1,223 (402) Denny's Corporation DENN (221) 444 (67) Depomed Inc. DEPO (37) 37 16 Domino's Pizza DPZ (561) 421 39 Dun & Bradstreet DNB (458) 1,392 (238) Echostar Comm DISH (30) 9,066 1,150 Embarq Corp EQ (331) 8,983 (409) Emeritus Corp. ESC (112) 953 (55) Empire Resorts I NYNY (10) 71 12 Encysive Pharmaceutical ENCY (122) 87 52 Enzon Pharmaceutical ENZN (55) 369 180 Epix Pharmaceutical EPIX (51) 112 39 Extendicare Real EXE-U (20) 1,316 29 Foamex Intl FMXI (272) 579 150 Ford Motor Co F (3,447) 281,491 (8,138) Gencorp Inc. GY (65) 1,037 31 General Motors GM (3,202) 185,198 (5,059) Graftech International GTI (86) 772 241 Healthsouth Corp. HLS (1,602) 3,238 (398) I2 Technologies ITWO (15) 185 32 ICOS Corp ICOS (18) 285 112 IDEARC Inc IAR (8,755) 1,508 171 IMAX Corp IMX (33) 243 84 IMAX Corp IMAX (33) 243 84 Incyte Corp. INCY (104) 325 261 Indevus Pharma IDEV (144) 76 36 Intermune Inc ITMN (55) 249 195 Ista Pharmaceuticals ISTA (15) 48 18 Koppers Holdings KOP (70) 671 177 Life Sciences LSR (1) 237 25 Lodgenet Entertainment LNET (54) 274 8 Maxxam Inc MXM (224) 560 142 McMoran Exploration MMR (47) 446 (31) Mediacom Comm MCCC (110) 3,620 (269) National Cinemed NCMI (585) 401 43 Neurochem Inc NRM (34) 61 20 New River Pharma NRPH (110) 152 (19) New World Restaurant NWRG (75) 133 (8) Nexstar Broadcasting NXST (80) 709 23 NPS Pharm Inc. NPSP (213) 180 (219) ON Semiconductor ONNN (138) 1,441 309 Primedia Inc PRM (434) 1,294 763 Protection One PONN (85) 441 (1) Qwest Communication Q (1,534) 20,701 (1,440) Radnet Inc. RDNT (48) 396 31 Ram Energy Resources RAME (2) 184 (6) Regal Entertainment RGC (130) 3,085 (131) Riviera Holdings RIV (28) 221 13 RSC Holdings Inc RRR (408) 3,281 (3,410) Rural Cellular RCCC (587) 1,362 183 Rural/Metro Corp. RURL (93) 298 38 Savvis Inc. SVVS (14) 640 145 Sealy Corp. ZZ (154) 1,021 61 Senorx Inc SENO (4) 16 2 Sipex Corp SIPX (12) 53 7 St. John Knits Inc. SJKI (52) 213 80 Station Casinos STN (178) 3,694 (46) Stelco Inc STE (83) 2,788 656 Sun-Times Media SVN (369) 929 (265) Suncom Wire-CL SCWH (433) 1,639 209 TechTarget TTGT (66) 94 31 Town Sports Int. CLUB (20) 436 (52) Unisys Corp. UIS (5) 3,913 317 Weight Watchers WTW (1,053) 1,019 (82) Western Union WU (172) 5,354 972 Westmoreland Coal WLB (108) 759 (55) Worldspace Inc. WRSP (1,641) 527 85 WR Grace & Co. GRA (467) 3,628 912 XM Satellite XMSR (445) 1943 (76) Xoma Ltd. XOMA (6) 70 28 ********* 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, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, John Paul C. Canonigo, Sheena Jusay, 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 ***